ORDINANCE NO.
AN ORDINANCE OF THE CITY OF ANAHEIM AMENDING
CERTAIN SECTIONS OF CHAPTER 1.09 OF TITLE 1 OF THE
ANAHEIM MUNICIPAL CODE TO IMPOSE LIMITATIONS
ON LOANS TO, AND THE RETIREMENT OF OUTSTANDING
DEBT INCURRED BY, CANDIDATES AND CANDIDATE
CONTROLLED COMMITTEES
THE CITY COUNCIL OF THE CITY OF ANAHEIM HEREBY ORDAINS AS FOLLOWS:
SECTION 1.
Section 1.09.100 of Chapter 1.09 of Title 1 of the Anaheim Municipal Code is hereby amended to read in full as follows:
1.09.100 LOANS AND EXTENSIONS OF CREDIT.
.010 A loan shall be considered a contribution from the maker and the guarantor of the loan, and shall be subject to the contribution limitations of this chapter. .0101 Notwithstanding Sections 1.09.050.040 and 1.09.100, a city candidate shall not personally loan to the candidate’s campaign, including the proceeds of a loan obtained by the candidate from a commercial lending institution, an amount, the outstanding balance of which exceeds one hundred thousand dollars ($100,000). A candidate shall not charge interest on any loan the candidate makes to the candidate’s campaign.” .020 The proceeds of a loan made to a city candidate by a commercial lending institution in the regular course of business on the same terms available to members of the public shall not be subject to the contribution limitations of this chapter if the loan is made directly to the candidate.
The guarantors of such a loan shall remain subject to the contribution limits of this chapter. .030 Every loan to a City Candidate or Elective City Officer or his or her controlled committee shall be by written agreement which shall be filed with the campaign statement on which the loan is first reported. In the case of a loan from the City Candidate or Elective City Officer to his or her controlled committee for which the candidate is personally liable, the written agreement shall identify the initial source of the loan (i.e., credit cards, a third party, a commercial lending institution).
.040 Extensions of credit (other than loans pursuant to subsection 1.09.100.020) shall be subject to the contribution limitations of this chapter unless the extension of credit meets the conditions set forth in either subdivisions (b)(1) or (b)(2) of Section 18530.7 of Title 2 of the California Code of Regulations, as that section may, from time to time, be amended. .050 This section shall apply only to loans and extensions of credit used, or intended for use, for campaign purposes, or which are otherwise connected with the holding of public office.
SECTION 2.
Section 1.09.125 is hereby added to Chapter 1.09 of Title 1 of the Anaheim Municipal Code to read in full as follows:
1.09.125 NOTICE OF INDEPENDENT EXPENDITURE COMMUNICATIONS.
Any person who makes an independent expenditure of one thousand dollars ($1,000.00) or more for any communication in support of or in opposition to any city candidate(s) shall provide written a Notice of Independent Expenditure Communication to all candidates running for that same office, and to the City Clerk, at least twenty-four (24) hours prior to the first publication, distribution, dissemination, or broadcast of the independent expenditure communication. The Notice of Independent Expenditure Communication shall be in writing with proof of date of delivery, shall be made by personal delivery, email, or facsimile, and shall include an actual copy of such communication if printed, or the script or a recording of any telephone call or video or audio advertisement. The City Clerk shall make the Notice of Independent Expenditure Communication and the copy, script, or recording available to the public on the City’s website as soon as feasible following receipt.
SECTION 3.
Section 1.09.058 of Chapter 1.09 of Title 1 of the Anaheim Municipal Code is hereby amended to read in full as follows:
1.09.058 OUTSTANDING DEBT RETIREMENT AND REPORTING.
.010 Any indebted former candidate, or any controlled committee of any such officer or candidate, accepting any contribution(s) for the purpose of retiring outstanding debt from a prior city election and required by state law to report such contributions on Schedule A of Fair Political Practices Commission Form 460, or any successor provision thereto, shall, at the time required for the reporting of such contributions on Schedule A and in addition to any other reporting requirements under state law, clearly designate on said Schedule A which contributions were received for the purpose of retiring outstanding debt and for which prior city election such contributions were received.
.020 Any contribution accepted for the purpose of retiring outstanding debt from a prior city election shall be applied to reduce or retire said outstanding debt in the same reporting period in which such contribution was accepted. The application of any contribution to retire outstanding debt from a prior city election (i.e., repayment of outstanding loans and payment of accrued expenses) shall be itemized and identified on the appropriate schedules and on the Summary Page of Form 460, or any successor form thereto, provided by the Fair Political Practices Commission.
.030 Except as provided in subsection .040 below, no indebted former candidate, or any controlled committee of any such officer or candidate, shall use any contributions received for the purpose of retiring outstanding debt from a prior city election for any purpose other than for the retirement of outstanding debt remaining from the prior city election for which such contribution was received.
.040 All indebted former candidates and all controlled committees of such officers or candidates shall retire outstanding debt within twelve (12) calendar months following the date of the city election for which the debt was incurred. No indebted former candidate, nor any controlled committee of any such officer or candidate, shall solicit or accept, and no person shall make to any such candidate or candidate’s controlled committee, any contribution(s) for the purpose of retiring outstanding debt from a prior city election after twelve (12) calendar months following the date of the city election for which the debt was incurred. .050 Following the retirement of all outstanding debt from the election for which such contributions were collected, any remaining funds which were collected for the purpose of retiring outstanding debt shall either be (i) used for purposes of defraying the expenses of holding city office in accordance with the provisions of Section 1.09.055, (ii) returned to the contributors, (iii) deposited in the City’s General Fund, or (iv) donated to any bona fide charitable, educational, civic, religious, or similar tax-exempt, nonprofit organization, where no substantial part of the proceeds will have a material financial effect on the former candidate or officeholder, any member of his or her immediate family, or his or her campaign treasurer.
SECTION 4.
Section 1.09.050.0502 of Chapter 1.09 of Title 1 of the Anaheim Municipal Code is hereby amended to read as follows:
.0502 The City Council shall, by ordinance, adjust the contribution limitations in January of odd-numbered years to reflect any cumulative increase or decrease in the Consumer Price Index for all urban consumers for the Los Angeles-Long Beach-Anaheim Urban Area as announced by the United States Department of Labor since the last adjustment. Such adjustments shall be rounded off to the nearest hundred dollars for the limitations on contributions.
SECTION 5.
The City Council of the City of Anaheim hereby declares that should any section, paragraph, sentence, phrase, term or word of this ordinance be declared for any reason to be invalid, it is the intent of the City Council that it would have adopted all other portions of this ordinance independent of the elimination herefrom of any such portion as may be declared invalid. If any section, subdivision, paragraph, sentence, clause or phrase of this Ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance, and each section, subdivision, paragraph, sentence, clause and phrase thereof, irrespective of the fact that any one (or more) section, subdivision, paragraph, sentence, clause or phrase had been declared invalid or unconstitutional.
SECTION 6.
The City Clerk shall certify to the passage of this ordinance and shall cause the same to be printed once within fifteen (15) days after its adoption in the Anaheim Bulletin, a newspaper of general circulation, published and circulated in the City of Anaheim.
SECTION 7.
This ordinance shall take effect and be in full force thirty (30) days from and after its final passage.
THE FOREGOING ORDINANCE was introduced at a regular meeting of the City Council of the City of Anaheim held on the___ day of __________ 2024, and thereafter passed and adopted at a regular meeting of said City Council held on the___ day of __________ , 2024, by the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
__________________________________
MAYOR OF THE CITY OF
ANAHEIM
ATTEST:
______________________________________
CITY CLERK OF THE CITY OF ANAHEIM