ORDINANCE NO. 01-22
AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF ORANGE AMENDING TITLE 2,
CHAPTER 2.10 OF THE ORANGE MUNICIPAL
CODE, BY DELETING SECTION 2.10.090 TO
ELIMINATE THE CURRENT PROHIBITION
AGAINST RECEIVING CONTRIBUTIONS
FROM CANDIDATE CONTROLLED
COMMITTEES.
WHEREAS, Orange Municipal Code (OMC) Section 2.10.090 was adopted in 1992, to prohibit inter -candidate transfers of campaign contributions between candidate controlled committees and City candidate committees; and
WHEREAS, the purpose of the ordinance was to prevent circumventing campaign contribution limits and the “funneling” of campaign contributions through candidate controlled committees; and
WHEREAS, the policy decision for eliminating this restriction is based on the fact that such a restriction limits the freedom of speech and association guaranteed by the First Amendment of the United States Constitution; and
WHEREAS, the proposed ordinance amendment would delete this provision, and allow inter-candidate transfers of campaign contribution s in accordance with the City’s Campaign Reform Ordinance.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ORANGE DOES HEREBY ORDAIN AS FOLLOWS:
SECTION I:
The Ordinance is not a project under the California Environmental Quality Act (CEQA) per State CEQA Guidelines Section 15378, because it involves an organizational and administrative activity of the City of Orange that will not result in direct or indirect physical changes in the environment.
SECTION II:
Section 2.10.090 of the Orange Municipal Code is hereby deleted in its entirety:
2.10.090 - Contributions from Committees.Reserved.
A. Contributions Transferred from Committees. Contributions from candidate controlled committees to a City Candidate Committee are prohibited except as provided in Section 2.10.090.C.
2 B. No committee controlled by a City Candidate or Elective City Officer shall make any contribution to any other committee supporting or opposing a City Candidate for office.
C. Contributions Transferred Between Controlled Committees by the Same City Candidate. If a City Candidate has more than one controlled committee, any transfers into the City Candidate's City Candidate Committee shall be governed by the following rules:
1. Transferred contributions shall be deemed contributed during the election cycle in which they are transferred to the receiving City Candidate Committee.
2. Transferred contributions shall be attributed to each contributor on a last in -first out (LIFO) basis and shall be aggregated with any contributions made by such contributor directly to the City Candidate Committee in the same election cycle and shall be subject to the contribution limits of this chapter. Transferred contributions shall be itemized on Schedule A of Fo rm 460 or any successor form, and shall identify the transferor committee for those contributions being transferred.
3. A one-time transfer shall be made at the time the City Candidate forms his/her controlled committee. Subsequent contributions received by the transferor committee on or after the date the City Candidate formed a committee to run for City office may not be transferred to the transferee committee established for that City office.
D. No person or committee shall accept or make any contribut ion that is conditioned upon all or part of the contribution being transferred to a City Candidate Committee or otherwise violates Government Code Section 84301. Any contributions received in violation of this subsection shall be paid by the City Candidate to the City's general fund within sixty (60) days of discovery of the violation.
SECTION III:
The City Clerk is hereby directed to certify the adoption of this Ordinance and cause the same to be published as required by law. This Ordinance shall take effect thirty (30) days from and after the date of its final passage.
ADOPTED this ____ day of ___________________, 2022.
Mark A. Murphy, Mayor, City of Orange
ATTEST:
Pamela Coleman, City Clerk, City of Orange
3 STATE OF CALIFORNIA )
COUNTY OF ORANGE )
CITY OF ORANGE )
I, PAMELA COLEMAN, City Clerk of the City of Orange, California, do hereby certify that the foregoing Ordinance was introduced at the regular meeting of the City Council held on the ___ day of _____________, 2022, and thereafter at the regular meeting of said City Council duly held on the ___ day of ____________, 2022 was duly passed and adopted by the following vote, to wit:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
________________________________________
Pamela Coleman, City Clerk, City of Orange