Agenda Item
City Council
Item #: 9.1. 2/8/2022 File #: 22-0076
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Gary A. Sheatz, City Attorney
1. SUBJECT
Introduction and first reading of 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. Ordinance No. 01-
22. 2. SUMMARY
Currently Orange Municipal Code Section 2.10.090 prohibits inter-candidate transfers of campaign contributions between candidate controlled committees to a City candidate committee. The proposed ordinance amendment would delete this prohibition, and allow a candidate controlled committee to contribute to a City candidate committee up to the maximum campaign contribution amount allowable under the City’s ordinance.
3. RECOMMENDED ACTION
Introduce and approve Ordinance No. 01-22.
4. FISCAL IMPACT
None.
5. STRATEGIC PLAN GOALS
This action does not correlate to any of the adopted strategic plan goals; however, it updates and amends the Orange Municipal Code (OMC) to reflect a policy desired by the City Council.
6. DISCUSSION AND BACKGROUND
In 1992, the City adopted its Campaign Reform Ordinance. OMC Section 2.10.090, prohibiting inter- candidate transfers of campaign contributions, was adopted as part of the original ordinance. The purpose of the restriction is to prevent circumventing campaign contribution limits by prohibiting both an individual, and a City candidate committee controlled by the same individual, from donating the maximum amount under the contribution limits during the same election cycle. It also prevents the “funneling” of campaign contributions through candidate-controlled committees.
Arguments against having an ordinance such as the City’scurrent ordinance focus on the primary effect of expenditure limitations, which restrict the quantity of campaign speech by individuals, groups and candidates. The courts have consistently held that restrictions on speech limit political association and expression, which are the core of the electoral process and fundamental rights City of Orange Printed on 2/3/2022Page 1 of 2
powered by Legistar™
Item #: 9.1. 2/8/2022 File #: 22-0076
association and expression, which are the core of the electoral process and fundamental rights guaranteed by the First Amendment. Nevertheless, courts have also been consistent in finding that where valid campaign contribution limits are in place, a narrowly drawn ban on inter-candidate committee transfers may be adopted to prevent circumventing contribution limits.
A brief survey of other cities in Orange County found that only Anaheim, Huntington Beach and the County of Orange have this restriction on campaign contributions. Other cities, such as Brea, Buena Park, Costa Mesa, Fountain Valley, Fullerton, Mission Viejo, Newport Beach, Santa Ana, Tustin, and Yorba Linda do not.
Both the current OMC Section prohibiting inter-candidate committee transfers and the proposed ordinance allowing such transfers are legally enforceable and well within the Political Reform Act’s default contribution limits. It is a matter of policy as to whether the City Council wishes to prohibit or allow campaign donations from a candidate committee. Approving Ordinance No. 01-22 would allow these additional types of campaign contributions.
7. ATTACHMENTS
· Ordinance No. 01-22 (Redlined)
City of Orange Printed on 2/3/2022Page 2 of 2
powered by Legistar™