Stanton City Council
November 12, 2024

ORDINANCE NO. 1153

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF STANTON, CALIFORNIA, AMENDING CHAPTER 5.67 OF THE STANTON MUNICIPAL CODE PERTAINING TO

TOBACCO RETAILER REGISTRATION
WHEREAS, pursuant to the police powers delegated to it by the California constitution, the City of Stanton (“City”) has the authority to enact laws which promote the public health, safety, and general welfare of its citizens; and WHEREAS, the City Council desires to clarify and refine portions of the Stanton Municipal Code pertaining to tobacco retailer registration; and WHEREAS, the City has an interest in protecting the public health, safety, and general welfare of its residents and desires to encourage responsible tobacco retailing by ensuring that tobacco/smoke shops operate lawfully within the City; and WHEREAS, the City Council finds and determines that the recent increase in use of ecigarettes by youth is a grave public health concern; and WHEREAS, according to the American Lung Association, smoking is the number one preventable cause of death in the United States killing over 480,000 people per year1; and WHEREAS, a recent CDC study found that 99% of e-cigarettes sold in assessed venues in the United States contain nicotine; and
WHEREAS, use of nicotine can harm the developing brain and the brain continues developing until age 25; and
WHEREAS, there is evidence that youth may be sensitive to nicotine and that teens can feel dependent on nicotine sooner than adults; and
WHEREAS, according to the 2020 National Youth Tobacco Survey, more than 23.6% of high school students in the United States use at least one tobacco product, including ecigarettes, as well as 6.7% of middle school students; and WHEREAS, flavorings in tobacco products can make the products more appealing to youth2; and
WHEREAS, on November 8, 2022, California voters upheld state law prohibiting tobacco retailers from selling most flavored tobacco products, including flavored ecigarettes, menthol cigarettes and tobacco product flavor enhancers; and 1 https://www.lung.org/research/sotc/facts 2 Centers for Disease Control and Prevention. Flavored Tobacco Product Use Among Middle and High School Students – United States, 2014. Morbidity and Mortality Weekly Report, 2015; 64(38):1066-70.

Attachment: B
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ORDINANCE NO. 1153

WHEREAS, on September 28, 2024, Governor Newsom signed Assembly Bill 3218 improving implementation of current law that bans flavored tobacco products in California; and
WHEREAS, the requirements proposed herein are reasonable, related to objective health, safety, and welfare concerns, and are based upon compliance with other generally applicable laws; and
WHEREAS, all legal prerequisites have occurred prior to the adoption of this Ordinance.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF STANTON, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1: The City Council finds that all the facts, findings and conclusions set forth above in this Ordinance are true and correct.

SECTION 2: This ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment), and 15060(c)(3) (the activity is not a project as defined in Section 15378), and 15061(b)(3) (common sense exemption) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.

SECTION 3: Section 5.67.020 entitled “Definitions” of Chapter 5.67 entitled “Tobacco Retailer Registration” of Title 5 entitled “Business Licenses and Regulations” of the Stanton Municipal Code is hereby amended to read as follows (new language is underlined and deleted language is stricken):
§ 5.67.020 Definitions.

The following words and phrases, whenever used in this chapter, shall have the meanings defined in this section unless the context clearly requires otherwise:
"Arm's length transaction" means a sale in good faith and for valuable consideration that reflects the fair market value in the open market between two informed and willing parties, neither of which is under any compulsion to participate in the transaction. A sale between relatives, related companies or partners, or a sale for which a significant purpose is avoiding the effect of the violations of this chapter is not an arm's length transaction. "Department" means the public safety services department, and any other agency or person tasked by the city manager with administration and enforcement of this chapter.

ORDINANCE NO. 1153

"Director" and "public safety director" mean the public safety director of the city and any other person tasked by the city manager with enforcement of this chapter.
"Electronic cigarette paraphernalia" means cartridges, cartomizers, e-liquid, smoke juice, tips, atomizers, electronic cigarette batteries, electronic cigarette chargers, and any other item designed for the preparation, storing, charging, or use of electronic cigarettes.
"Electronic smoking device" means an electronic and/or battery-operated device that can be used to deliver an inhaled dose of nicotine, or any other substance, including any component, part, or accessory of such a device, whether or not sold separately. "Electronic smoking device" includes any such device, whether manufactured, distributed, marketed, or sold as an electronic cigarette, an electronic cigar, an electronic cigarillo, an electronic pipe, an electronic hookah, or any other product name or descriptor.
"Pharmacy" has the same meaning as Business and Professions Code Section 4037 and is any retail establishment in which the profession of pharmacy is practiced by a pharmacist licensed by the state of California in accordance with the Business and Professions Code Sections 4036,and is where prescription pharmaceuticals are offered for sale, regardless of whether the retail establishment sells other retail goods in addition to prescription pharmaceuticals. "Proprietor" means a person with an ownership or managerial interest in a business. An ownership interest shall be deemed to exist when a person has a ten percent or greater interest in the stock, assets, or income of a business other than the sole interest of security for debt. A managerial interest shall be deemed to exist when a person can or does have or shares ultimate control over the dayto-day operations of a business. "School" means any public, private, or charter school providing instruction in preschool, transitional kindergarten, kindergarten, or grades one through twelve, inclusive, but does not include any private school in which education is primarily conducted in private homes.
"Self-service display" means the open display or storage of tobacco products or tobacco paraphernalia in a manner that is physically accessible in any way to the general public without the assistance of the retailer or employee of the retailer and a direct person-to-person transfer between the purchaser and the retailer or employee of the retailer. A vending machine is a form of self-service display.

ORDINANCE NO. 1153

"Smoking" means the release of gases, particles, or vapors into the air as the result of combustion electrical ignition, or vaporization and/or inhaling, exhaling, burning, or carrying any lighted, heated, or ignited cigar, cigarette, cigarillo, pipe, hookah, electronic smoking device, or any plant product, including, but not limited to, tobacco and marijuana, intended for human inhalation. "Tobacco paraphernalia" means cigarette papers or wrappers, pipes, holders of smoking materials of all types, cigarette rolling machines, and any other item designed for the smoking, preparation, storing, or consumption of tobacco products.
"Tobacco product" means any product or substance containing, made of, or derived from tobacco or nicotine that is intended for human consumptionleaf, whether smoked, heated, chewed, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by any other means, including, but not limited to, cigarettes, cigars, pipe tobacco, hookah tobacco, snuff, chewing tobacco, dipping tobacco, snus, bidis, or any other preparation of tobacco; and any product or formulation of matter containing biologically active amounts of nicotine or a synthetic nicotine product that is manufactured, sold, offered for sale, or otherwise distributed with the expectation that the product or matter will be introduced into the human body, but does not include any cessation product specifically approved by the United States Food and Drug Administration for use in treating nicotine or tobacco dependence. Tobacco product includes any component, part, or accessory intended or reasonably expected to be used with a Tobacco product, whether or not sold separately.
"Tobacco retailer" means any person who sells, offers for sale, or does or offers to exchange for any form of consideration, tobacco, tobacco products or tobacco paraphernalia, and that has at least fifty percent of tobacco, tobacco products, or tobacco paraphernalia as the retailer's regular stock in trade, as displayed for sale or exchange, in the retail establishment. This definition is without regard to the quantity of tobacco, tobacco products, or tobacco paraphernalia actually sold or exchanged.
“Characterizing flavor” means any tobacco product that contains a taste or smell, other than the taste or smell of tobacco, that is distinguishable by an ordinary consumer either prior to, or during consumption of, a tobacco product, including but not limited to, any taste or smell relating to fruit, menthol, mint, wintergreen chocolate, cocoa, vanilla, honey, molasses, or any candy, dessert, alcoholic beverage, herb or spice. A tobacco product shall not be determined to have a characterizing flavor solely because of the use of additives or flavorings or the provision of ingredient information. Rather, it is the presence of a distinguishable taste or aroma, or both, as described in the first sentence of this definition, that constitutes characterizing flavor.

ORDINANCE NO. 1153

“Flavored tobacco product” means any tobacco product that imparts a characterizing flavor. There is a rebuttable presumption that a tobacco product is a flavored tobacco product if a tobacco retailer, manufacturer, or any employee or agent of a tobacco retailer or manufacturer has (i) made a public statement or claim that the tobacco product imparts a characterizing flavor; (ii) used text and/or images on the tobacco product’s labeling or packaging to explicitly or implicitly indicate that the tobacco product imparts a characterizing flavor or (iii) taken action directed to consumers that would be reasonably expected to cause consumers to believe the tobacco product imparts a characterizing flavor.

SECTION 4: If any section, subsection, sentence, clause, phrase, or portion of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council of the City of Stanton hereby declares that it would have adopted this Ordinance and each section, subsection, sentence, clause, phrase, or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional.

SECTION 5: The City Clerk shall certify to the adoption of this Ordinance and cause same to be posted in the three (3) designated posting places within the City of Stanton within fifteen (15) days after its passage.

PASSED, APPROVED, AND ADOPTED this 26th day of November, 2024.

DAVID J. SHAWVER, MAYOR
ATTEST:

PATRICIA A. VAZQUEZ, CITY CLERK
APPROVED AS TO FORM:

HONGDAO NGUYEN, CITY ATTORNEY
ORDINANCE NO. 1153

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.

CITY OF STANTON )
I, Patricia A. Vazquez, City Clerk of the City of Stanton, California, do hereby certify that the foregoing Ordinance No. 1153 was introduced at a regular meeting of the City Council of the City of Stanton, California, held on the 12th day of November, 2024 and was duly adopted at a regular meeting of the City Council held on the 26th day of November, 2024, by the following roll-call vote, to wit:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

PATRICIA A. VAZQUEZ, CITY CLERK
ORDINANCE NO. 1148
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ORDINANCE NO. 1148

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF STANTON, CALIFORNIA AMENDING TITLE 20 (ZONING) OF THE STANTON MUNICIPAL CODE TO

EXPRESSLY PROHIBIT SHORT-TERM RENTALS IN ALL ZONES WITHIN THE CITY

AND TO PROHIBIT BED AND BREAKFAST ESTABLISHMENTS IN RESIDENTIAL

ZONES AND MIXED-USE OVERLAY ZONES AND FINDING THE ACTION EXEMPT FROM CEQA PURSUANT TO STATE CEQA GUIDELINES SECTIONS 15060(c)(2) AND 15060(c)(3) AND ALTERNATIVELY CATEGORICALLY EXEMPT PURSUANT TO SECTION 15301
WHEREAS, the City of Stanton, California (“City”) is a municipal corporation, duly organized under the California Constitution and laws of the State of California; and WHEREAS, the proliferation of online vacation rental websites has encouraged and enabled City property owners, tenants, and occupants to rent their local properties on a short-term basis to travelers or transients; and
WHEREAS, these short-term rentals, generally numbering less than 30 days, are often associated with excessive noise, parking problems, trash, and degradation of a neighborhood’s residential character; and
WHEREAS, the City has also received complaints from residents about the negative secondary effects of short-term rental uses in their neighborhoods; and WHEREAS, similar concerns arise with bed and breakfast inns where the transient nature of guests can disrupt the peaceful enjoyment of residential neighborhoods; and WHEREAS, the presence of bed and breakfast inns in neighborhoods can also conflict with the intended residential use of these areas and undermine the City’s efforts to maintain a stable and consistent residential character throughout the community; and WHEREAS, cities have a legitimate governmental interest in preserving the residential character of their neighborhoods and protecting against public nuisance activities; and WHEREAS, Sections 20.100.060 and 20.105.020 of the Stanton Municipal Code (“SMC”) prohibit any use not listed as permitted within the SMC. Because short-term rentals are not expressly permitted in any zone, such uses are prohibited throughout the City; and WHEREAS, in an effort to provide further clarity on this restriction, the City Council desires to amend Article 2 (Zones, Allowed Uses, and Zone-Specific Standards) of the SMC to expressly prohibit short-term rentals in all zones to preserve the residential character of City neighborhoods and address the negative, secondary effects caused by those uses throughout the City; and
Item: 8A
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ORDINANCE NO. 1148
PAGE 2 OF 9
WHEREAS, the City further desires to amend Chapters 20.210 (Residential Zones) and

20.230 (Mixed-Use Overlay Zones) of the SMC to prohibit bed and breakfast inns in all residential zones and mixed-use overlay zones throughout the City in order to further preserve the residential character of City neighborhoods; and WHEREAS, in addition to addressing the negative secondary effects of these uses, the Zoning Code Amendments will also help increase housing inventory for long-term residents in the City during the statewide housing crisis; and WHEREAS, on September 5, 2024, the City gave public notice that the Planning Commission would conduct a public hearing to consider Zoning Code Amendment ZCA 24-03 by posting the public notice at three public places including Stanton City Hall, the Post Office, and the Stanton Community Services Center, and publishing the notice in the Orange County Register on September 7, 2024 and the Planning Commission agenda was made available through the agenda posting process; and WHEREAS, on September 18, 2024 the Planning Commission conducted and concluded a duly noticed public hearing concerning the Ordinance contained herein as required by law and following receipt of all public testimony closed the hearing on that date, and continued the item to the meeting of October 2, 2024; and WHEREAS, on October 2, 2024 the Planning Commission conducted and concluded a duly noticed public hearing concerning the Ordinance contained herein as required by law and following receipt of all public testimony closed the hearing on that date, and adopted Resolution No. 2569; and
WHEREAS, on October 22, 2024 the City Council held a first reading and duly noticed public hearing and considered the staff report, recommendations, by staff, and public testimony concerning the amendments to Title 20 (Zoning) of the SMC, and provided comments on the amendments; and
WHEREAS, on November 12, 2024, the City Council held a second reading and considered the staff report, recommendations by staff, and testimony taken at the first reading concerning the amendments of the SMC, provided comments on the amendments, and voted to approve the proposed ordinance; and WHEREAS, all legal preconditions to the adoption of this Ordinance have occurred.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF STANTON, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1: Recitals. The recitals set forth above are true and correct and are hereby adopted as findings in support of this Ordinance as if fully set forth herein.

SECTION 2: CEQA. The City Council finds that the proposed actions are not subject to the California Environmental Quality Act (“Public Resources Code section 21000 et seq.) (“CEQA”) because they does not qualify as a “project” under CEQA. The State CEQA Guidelines provide that “[a]n activity is not subject to CEQA if … the activity is not a project ORDINANCE NO. 1148
PAGE 3 OF 9
as defined in Section 15378.” (State CEQA Guidelines, § 15060(c).) Here, the Ordinance not qualify as a “project” as defined in State CEQA Guidelines section 15378 for at least two different reasons: First, Section 15378 defines a project as an activity that “has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.” (State CEQA Guidelines, § 15378(a).) The Ordinance clarifies and affirms that short-term rentals establishments are prohibited in all zones. The Ordinance also newly provides that bed and breakfast inns are prohibited in residential and mixed use zones. These prohibitions will help address the current housing shortage in California by increasing the availability of housing stock for long-term residents. Such actions will not result in a direct or reasonably foreseeable indirect physical change in the environment. Accordingly, the Ordinance is not a “project” subject to CEQA. (State CEQA Guidelines, § 15060(c).) Second, Section 15378 explicitly excludes from its definition of “project” the following:
“organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.” (State CEQA Guidelines, § 15378(b)(5).) The Ordinance constitutes an organizational or administrative activity that will not result in a physical change in the environment, and it therefore is not subject to CEQA.

Even if the Ordinance is considered a “project” subject to CEQA, it is categorically exempt pursuant to State CEQA Guidelines Section 15301 because it involves restrictions on short-term or vacation rental and bed and breakfast inns within existing private structures, with no expansion of existing or former use. In addition, the proposed Ordinance is exempt from CEQA pursuant to the “common sense” exemption under CEQA Guidelines section 15061(b)(3), because there is no possibility that the Ordinance might have a significant effect on the environment. The Ordinance prohibit short-term rentals and bed and breakfast inns in specified zones to help address the current housing shortage in California by increasing the availability of housing stock for long-term residents.

Lastly, none of the exceptions to the use of categorical exemptions identified in State CEQA Guidelines section 15300.2 apply: there is no potential for cumulative impacts; there are no unusual circumstances that would have a significant impact on the environment due to the adoption of the Ordinance; the Ordinance would not negatively impact scenic resources within a duly designated scenic highway; there is no record of hazardous waste and the Ordinance has no potential to impact historic resources. Staff is further directed to file a Notice of Exemption for this Ordinance with the County Clerk and the State Clearinghouse in accordance with State CEQA Guidelines.

SECTION 3: Findings. Government Code Sections 65860 and 65855 requires a city's zoning ordinance to be consistent with the general plan. Based on all evidence in the record for the Ordinance and all other applicable information presented, the City Council finds that the proposed Ordinance is appropriate for the following reasons:

1. Consistency with City’s General Plan: The proposed Ordinance is consistent with the City’s General Plan, particularly in supporting the goals of maintaining a balanced mix of residential, commercial, and industrial uses (Goal LU-1.1) while preserving the character of the City’s residential neighborhoods (Strategy LU3.1.1). By prohibiting expressly short-term rentals throughout the City and bed and ORDINANCE NO. 1148
PAGE 4 OF 9
breakfast inns in residential and mixed-use overlay zones, the Ordinance ensures compatibility between adjacent land uses (Goal CD-1.3). Additionally, the Amendments support Goal LU-6.1 by ensuring compliance with the City’s land use code, which contributes to improving the overall character of the City’s neighborhoods.

2. Adoption of the Ordinance Will Not be Detrimental to the Public Interest, Health, Safety, Convenience, or Welfare: The proposed Ordinance will not be detrimental to the public health, safety, or welfare because they maintain the current zoning framework without introducing new uses or conditions that could pose risks. The express prohibition on short-term rentals also preserves the established residential character of certain areas of the City and avoids the introduction of transient activities in residential neighborhoods that could disrupt the existing community standards. Furthermore, by prohibiting bed and breakfast inns and similar transient lodging uses, the Ordinance supports the preservation and potential increase of housing inventory available for long-term residents to help address the ongoing housing shortage while ensuring the integrity and stability of communities throughout the City.

3. Consistency with Zoning Code: The Ordinance is internally consistent with other provisions of the City’s Zoning Code, as they reinforce existing regulations that prohibit incompatible uses in certain zones. By explicitly prohibiting short-term rentals throughout the City, the Ordinance supports the Zoning Code’s overall objective to maintain residential neighborhoods’ character, stability, and quality throughout the City while reducing ambiguity that has led to disputes over zoning interpretations. The prohibition on bed and breakfast inns in residential and mixeduse overlay zones supports the Zoning Code’s broader goal of balancing residential and non-residential uses, particularly in areas designed for long-term residential occupancy.

SECTION 4: Table 2-2 (Allowed Land Uses and Permit Requirements Residential Zones) within Section 20.210.020 is hereby amended to prohibit the following uses under the Land Use category of “Other Uses” (additions in bold, deletions in strikethrough):

Land Use RE RL RM RH(3) Specific Use
Regulations
Other Uses
Short-Term
or Vacation
Rental
— — — — 20.240.020
Bed and
Breakfast
Inns
CUP
—
CUP
—
CUP
—
CUP
—
ORDINANCE NO. 1148
PAGE 5 OF 9
SECTION 5: Table 2-5 (Allowed Land Uses and Permit Requirements Commercial Zones) within Section 20.215.020 is hereby amended to prohibit the following use under the Land Use category of “Other Uses” (additions in bold):

Land Use CN CG Specific Use
Regulations
Other Uses
Short-Term or
Vacation Rental
— — 20.240.020
SECTION 6: Table 2-7 (Allowed Land Uses and Permit Requirements Industrial Zones) within Section 20.220.020 is hereby amended to prohibit the following use under the Land Use category of “Other Uses” (additions in bold):

Land Use BP IG Specific Use
Regulations
Other Uses
Short-Term or
Vacation Rental
— — 20.240.020
SECTION 7: Table 2-9 (Allowed Land Uses and Permit Requirements Special Purpose Zones) within Section 20.225.020 is hereby amended to prohibit the following use under the Land Use category of “Other Uses” (additions in bold):

Land Use OS PR PI SW SP (1) Specific Use
Regulations
Other Uses
ShortTerm or
Vacation
Rental
— — — — — 20.240.020
ORDINANCE NO. 1148
PAGE 6 OF 9
SECTION 8: Table 2-11 (Allowed Land Uses and Permit Requirements Mixed-Use Overlay Zones) within Section 20.230.040 is hereby amended to prohibit the following uses under the Land Use category of “Lodging” (additions in bold, deletions in strikethrough):

Land Use GLMX NGMX (3) SGMX Specific Use
Regulations
Lodging
Bed and
Breakfast Inns
P
—
P
—
—
Short-Term or
Vacation
Rental
— — — 20.240.020
SECTION 9: Chapter 20.240 (Short-Term Rentals) is hereby added to Article 2 (Zones, Allowed Uses, and Zone-Specific Standards) of Title 20 (Zoning) of the Stanton Municipal Code to read as follows:
“CHAPTER 20.240: SHORT-TERM RENTALS

20.240.010 Definitions.

20.240.020 Prohibitions.

20.240.030 Violations.

20.240.010 Definitions
For purposes of this Chapter, the following definitions apply:

A. "Advertisement" means any announcement, whether in a magazine, newspaper, handbill, notice, display, billboard, poster, email, internet website, platform, application, or any form of television, radio broadcast, or other form of communication, whose primary purpose is to propose a transaction.

B. ”Responsible party” includes any owner, tenant, or other person or entity with a legal interest or possessory interest in the property who offers, causes, provides, allows, or facilitates, or aids another in offering, causing, providing, allowing, or facilitating, a violation of this Chapter. It does not include a newspaper, online platform, or other publisher who merely publishes an advertisement.

ORDINANCE NO. 1148
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C. “Short-term or vacation rental” means the rental to a person or group of persons of a dwelling unit, or portion thereof, for compensation or consideration, whether monetary or otherwise, for lodging or sleeping purposes for a period of less than 30 consecutive calendar days.

20.240.020: Prohibitions
A. It is unlawful for a responsible party within any zone in the City of Stanton to:

1. Offer, cause, provide, allow, or facilitate, or to aid another in offering, causing, providing, allowing, or facilitating, for rent or to rent for compensation or consideration a short-term or vacation rental, whether through a rental agreement, lease, license, or any other means, whether oral or written, for compensation or consideration; or

2. Offer, cause, provide, allow, or facilitate, or to aid another in offering, causing, providing, allowing, or facilitating, any advertisement, whether published, disseminated, or broadcast through an online platform, newspaper, or any other means, of a short-term or vacation rental located in the City of Stanton.

20.240.030: Violations
A. Any violation of this Chapter is unlawful and constitutes a strict liability offense, regardless of intent. The remedies provided in this Section are cumulative and not exclusive and nothing in this Section shall preclude the use or application of any other remedies, penalties, or procedures established by law.

B. Any violation of this Chapter constitutes a public nuisance which may be abated by the City in accordance with California Code of Civil Procedure § 731 through any means provided by law, including, but not limited to, Chapter 20.635 of this Code.

C. In addition to or in lieu of other action, the City may, at its discretion, undertake any one or all of the following legal actions to correct or abate any nuisances or violations under this Chapter:

1. Civil Penalties. Any responsible party who violates any provision of this Chapter is liable for a civil penalty established by resolution of the City Council.

2. Administrative Citation. Any responsible party who violates any provision of this Chapter is subject to administrative fines established by resolution of the City Council in accordance with Chapter 1.12 of this Code.

3. Criminal Penalty. Any violation of this Chapter constitutes a misdemeanor punishable under Chapter 20.635 of this Code.” ORDINANCE NO. 1148
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SECTION 10: Severability. If any section, sentence, clause, or phrase of this Ordinance or the application thereof to any entity, person or circumstance is held for any reason to be invalid or unconstitutional, such invalidity or unconstitutionality will not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are severable.

The City Council of the City of Stanton declares that it would have adopted this Ordinance and each section, sentence, clause, or phrase thereof, irrespective of the fact that any one or more section, subsections, sentences, clauses, or phrases be declared invalid or unconstitutional.

SECTION 11: Effective Date. This Ordinance will become effective 30 days following its adoption.

SECTION 12: Posting or Publication. The City Clerk is directed to certify the adoption of this Ordinance. Not later than fifteen (15) days following the passage of this Ordinance, the Ordinance, or a summary thereof, along with the names of the City Council members voting for and against the Ordinance, will be published or posted in the manner required by law.

SECTION 13: Record of Proceedings. The documents and materials associated with this Ordinance that constitute the record of proceedings on which these findings are based are located at 7800 Katella Avenue, Stanton, California 90680. The City Clerk is the custodian of the record of proceedings.

PASSED, APPROVED, AND ADOPTED this 12th day of November, 2024.

DAVID J. SHAWVER, MAYOR
ATTEST:

PATRICIA A. VAZQUEZ, CITY CLERK
APPROVED AS TO FORM:

HONGDAO NGUYEN, CITY ATTORNEY
ORDINANCE NO. 1148
PAGE 9 OF 9

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.

CITY OF STANTON )
I, Patricia A. Vazquez, City Clerk of the City of Stanton, California, do hereby certify that the foregoing Ordinance No. 1148 was introduced at a regular meeting of the City Council of the City of Stanton, California, held on the 22nd day of October, 2024 and was duly adopted at a regular meeting of the City Council held on the 12th day of November, 2024, by the following roll-call vote, to wit:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

PATRICIA A. VAZQUEZ, CITY CLERK
1 CITY OF STANTON

REPORT TO CITY COUNCIL
TO: Honorable Mayor and Members of the City Council
DATE: November 12, 2024
SUBJECT: AN ORDINANCE AMENDING THE LOCAL VENDOR PREFERENCE

SECTION OF THE STANTON MUNICIPAL CODE
REPORT IN BRIEF:

City Council recently held discussions relating to the local vendor preference listed in Stanton’s Municipal Code. As a result of those discussions, adjustments are being made to increase the local vendor preference from two percent (2%) to three percent (3%) through the adoption of Ordinance No. 1152.

RECOMMENDED ACTION:

1. City Council declare that the project is exempt from the California Environmental Quality Act (“CEQA”) under Section 15061(b)(3) as the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA; and

2. Introduce Ordinance No. 1152, entitled:
“AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF STANTON, CALIFORNIA, AMENDING SECTION 2.56.075 OF THE MUNICIPAL CODE PERTAINING TO LOCAL VENDOR PREFERENCES”; and

3. Set said ordinance for second reading and adoption at the November 26, 2024, regularly scheduled City Council meeting.

BACKGROUND:

On February 27, 2018, the City Council adopted Ordinance No.1076 amending Section

2.56.075 of Title 2 of the Stanton Municipal Code regarding Local Vendor Preference to enact a two percent (2%) local preference which had previously been set at one percent (1%).

Item: 9A
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2 Currently, Section 2.56.075 of Title 2 of the Stanton Municipal Code Pertaining to Local Vendor Preference reads as follows:

Local vendors are granted a two percent differential in lieu of sales and transactions tax loss for the purchase of materials, supplies, equipment and personal property. Prices, fitness, quality, delivery and service being equal, preference will be given to the local vendor, in the purchase of supplies and equipment, as provided for in a purchasing policy adopted by the city council by resolution. Local vendor preference shall not be granted for contracts involving public works, personal, professional, and consultant services, or as otherwise prohibited by law. For the purposes of this section, “local vendor” means a business having its principal place of operation within the jurisdictional boundaries of the city and a valid business license. For purposes of this chapter, when the city considers a local vendor’s bid in connection with the purchase of supplies and equipment, the local vendor’s bid shall be the bid amount after the applicable percent differential is applied.”
At the City Council meeting of June 25, 2024, Mayor Pro Tem Warren received consensus to review the City’s local preference policies as they relate to the City’s procurement efforts to ensure continued support of local Stanton businesses.

On October 8, 2024, the City Council reviewed the existing administrative policy and had a discussion regarding local preferences for City procurements. As a result of those discussions, staff is now recommending adjusting the local vendor preference up to three percent (3%) from two percent (2%). City Council requested staff bring forward such a change to the Stanton Municipal Code.

ANALYSIS/JUSTIFICATION:

By raising the City’s existing local vendor preference to a total of three percent (3%), the City would be passing along the full benefit that the City would be receiving from sales and transactions and use tax revenue to local businesses.

Ordinance No. 1152 amends section 2.56.075 of the Stanton Municipal Code to reflect the increased preference given to local vendors, while restricting the services by which the preference can be given to strictly those that could have a sales and transactions and use tax offset (such as supplies and equipment).

A local business preference allows the City to promote local businesses, as well as benefit from enhanced economic activity as dollars re-circulate in the local economy by way of multiplier effects. Multiplier effects have been shown to benefit the community in the following ways:
• Direct effects. Benefits the local economy by directly investing money in a local business.
3 • Indirect effects. Occurs when money awarded to a local business results in interindustry purchases of materials, supplies, goods and services. Another potential indirect effect is the increase in employment associated with greater workloads/demands.
• Induced effects. Increases in household income as a result of both the direct and indirect effects.

Local vendors would benefit by applying an increased three percent (3%) local vendor preference to purchases of supplies and equipment. Meanwhile, the City would not face a net loss, as only purchases that are eligible to collect sales and transactions and use taxes will be applicable to the preference. In addition, the proposed revision specifically provides that publicly bid projects are excluded in conjunction with state law.

FISCAL IMPACT:

The approval of Ordinance No. 1152 would have no fiscal impact to the City if a local vendor preference was applied. In the event that a local and a non-local vendor/bidder have a similar or the same quote and the local vendor is selected because of consideration of the local vendor preference, any increased cost to the City as a result of selecting the local vendor would be offset in the form of the three percent (3%) received by sales and/or transactions and use tax revenues.

ENVIRONMENTAL IMPACT:

Not applicable.

LEGAL REVIEW:

The City Attorney prepared the attached Ordinance.

PUBLIC NOTIFICATION:

Through the normal agenda posting process.

STRATEGIC PLAN OBJECTIVE:

Obj. No. 2: – Promote a strong local economy.

Prepared by: HongDao Nguyen, City Attorney
Fiscal Impact Reviewed by: Michelle Bannigan, Finance Director Approved by: Hannah Shin-Heydorn, City Manager
Attachment:

A. Ordinance No. 1152
ORDINANCE NO. 1152
PAGE 1 OF 3
ORDINANCE NO. 1152

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF STANTON, CALIFORNIA AMENDING SECTION 2.56.075 OF THE MUNICIPAL CODE

PERTAINING TO LOCAL VENDOR PREFERENCES
WHEREAS, the City’s existing municipal code includes a local vendor preference granting “a two percent differential in lieu of sales tax loss for the purchase of materials, supplies, equipment, personal property and services”; and WHEREAS, on February 27, 2018, the City Council adopted Ordinance No.1076 amending Section 2.56.075 of Title 2 of the Stanton Municipal Code regarding Local Vendor Preference to enact a two percent (2%) local preference; and WHEREAS, the City desires to benefit local businesses in an effort to promote the economic health of the City by keeping dollars, jobs, and sales and transactions and use taxes within the City; and
WHEREAS, Public Contract Code § 22030 et seq., preempts local preference in regard to the procurement of goods and services for public works projects which requires the City to award to the lowest responsible bidder; and WHEREAS, the City Council desires to increase its local preference from two percent (2%) to three percent (3%) which will encourage businesses to locate to and remain in Stanton.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF STANTON DOES ORDAIN AS FOLLOWS:

SECTION 1: CEQA. The City Council finds that this Ordinance is exempt from the California Environmental Quality Act (“CEQA”) pursuant to Section 15061(b)(3) as the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

SECTION 2: Amending Section 2.56.075 Local Vendor Preference. Section

2.56.075 of Title 2 of the Stanton Municipal Code is hereby amended in its entirety to read as follows:
“2.56.075 Local Vendor Preference
Local vendors are granted a three percent (3%) differential in lieu of sales and transactions tax loss for the purchase of materials, supplies, equipment and personal property. Prices, fitness, quality, delivery and service being equal, preference will be given to the local vendor, in the purchase of supplies and equipment, as provided for Attachment: A
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ORDINANCE NO. 1152
PAGE 2 OF 3
in a purchasing policy adopted by the city council by resolution. Local vendor preference shall not be granted for contracts involving public works, personal, professional, and consultant services, or as otherwise prohibited by law. For the purposes of this section, “local vendor” means a business having its principal place of operation within the jurisdictional boundaries of the city and a valid business license. For purposes of this chapter, when the city considers a local vendor’s bid in connection with the purchase of supplies and equipment, the local vendor’s bid shall be the bid amount after the applicable percent differential is applied.”
SECTION 3: Severability. If any section, subsection, sentence, clause, phrase or portion of this Ordinance, is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council of the City of Stanton hereby declares that it would have adopted this Ordinance, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases may be declared invalid or unconstitutional.

SECTION 4: Effective Date. This Ordinance No. 1152 shall be effective 30 days after its adoption.

SECTION 5: Publication. The City Clerk shall certify as to the adoption of this Ordinance and shall cause a summary thereof to be published within fifteen (15) days of the adoption and shall post a Certified copy of this Ordinance, including the vote for and against the same, in the Office of the City Clerk, in accordance with Government Code Section 36933.

PASSED, APPROVED, AND ADOPTED this 26th day of November, 2024.

DAVID J. SHAWVER, MAYOR
ATTEST:

PATRICIA A. VAZQUEZ, CITY CLERK
ORDINANCE NO. 1152
PAGE 3 OF 3
APPROVED AS TO FORM:

HONGDAO NGUYEN, CITY ATTORNEY

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.

CITY OF STANTON )
I, Patricia A. Vazquez, City Clerk of the City of Stanton, California, do hereby certify that the foregoing Ordinance No. 1152 was introduced at a regular meeting of the City Council of the City of Stanton, California, held on the 12th day of November, 2024 and was duly adopted at a regular meeting of the City Council held on the 26th day of November, 2024, by the following roll-call vote, to wit:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

PATRICIA A. VAZQUEZ, CITY CLERK

CITY OF STANTON

REPORT TO CITY COUNCIL
TO: Honorable Mayor and Members of the City Council
DATE: November 12, 2024
SUBJECT: DISCUSSION REGARDING DEVELOPMENT AGREEMENTS FOR THE

TOWN CENTER SPECIFIC PLAN
REPORT IN BRIEF:

At the City Council meeting of May 14, 2024, Council Member Torres received consensus to place an item on a future agenda regarding development agreements for the Town Center Specific Plan (TCSP) to support minimum standards for development. Tonight, the Council will receive a presentation and provide direction to staff.

RECOMMENDED ACTION:

1. City Council find that this item is not subject to California Environmental Quality Act (“CEQA”) pursuant to Sections 15378(b)(5) (Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment); and

2. Provide direction to staff.

BACKGROUND:

During tonight’s presentation staff will cover the following topics:
• Provide an overview of specific plans.
• Provide an overview of the Town Center Specific Plan (TCSP). • Provide summaries of specific sections of the TCSP that memorialize the established requirements regarding existing minimum standards. • Provide an overview of development agreements and when they can be used.

Following the presentation, staff will be available to answer any questions and will await direction from the City Council.

Item: 9B
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FISCAL IMPACT:

There is no fiscal impact associated with the recommended actions.

ENVIRONMENTAL IMPACT:

In accordance with the requirements of California Environmental Quality Act (“CEQA”), the project is exempt pursuant to Sections 15378(a) and 15061(b)(3) of the State CEQA Guidelines (Title 14 of the California Code of Regulations).

PUBLIC NOTIFICATION:

Public notice was made through the regular agenda process.

STRATEGIC PLAN OBJECTIVE:

Obj. No. 6: Maintain and promote a responsive, high quality and transparent government.

Prepared by: Hannah Shin-Heydorn, City Manager
Approved by: Hannah Shin-Heydorn, City Manager

CITY OF STANTON

REPORT TO CITY COUNCIL
TO: Honorable Mayor and Members of the City Council
DATE: November 12, 2024
SUBJECT: DISCUSSION REGARDING CAMPAIGN CONTRIBUTIONS AND LEVINE ACT (SENATE BILLS 1439 AND 1243)
REPORT IN BRIEF:

At the City Council meeting of November 28, 2023, Council Member Taylor received consensus to review campaign contribution limits and the Levine Act (Senate Bill 1439) and consider updates to the City’s specific limit(s) and policies. An initial presentation on those two topics was provided to the City Council in February 2024. Tonight, the Council will consider the existing limit(s) and policies and provide direction to staff.

RECOMMENDED ACTION:

1. City Council find that this item is not subject to California Environmental Quality Act (“CEQA”) pursuant to Sections 15378(b)(5) (Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment); and

2. Provide direction to staff.

BACKGROUND:

The following sections of the report will provide a summary of the Levine Act and the City’s existing contribution limits.

Levine Act
California’s Levine Act, named for its author then-California Assemblymember Mel Levine, seeks to regulate the “pay-to-play” impacts of campaign contributions in state agency actions. It was enacted in response to reports that members of a state agency sought to raise money from private sector interests that had requests pending before their agency. Until 2022, the Levine Act applied only to state officials and those with business before state agencies.

Item: 9C
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After 40 years, the Levine Act was amended by SB 1439 (Attachment A) in 2022 to extend its restrictions to local elected officials, such as mayors and city council members, school district board members, and boards of supervisors. SB 1439 provides that local elected officials are now required to “conflict out” of certain proceedings involving persons that made contributions to their respective political campaigns.

To implement SB 1439, the FPPC adopted new and amended regulations in 2023. The FPPC website includes all the updated regulations, fact sheets, guides, and advice letters at https://www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html. The FPPC webpage includes the following introduction:

Pay-to-Play Limits and Prohibitions (Section 84308)
In order to promote transparency and fairness in the governmental decision making process there are rules in place to prevent public officials from being unfairly influenced by contributors to their campaign. The type of activity these laws were enacted to limit is often referred to as “pay-to-play”.

A law aimed at preventing pay-to-play politics, Section 84308 generally prohibits a party seeking a contract (other than competitively bid), license, permit, or other entitlement for use from making a contribution of more than $250 to an official of the agency. Statutes such as Section 84308 aim to maintain the integrity and public perception of government bodies and to prevent a culture in which bidders or applicants believe it is necessary to make political contributions to receive government contracts or permits.

In 2022, the California Legislature passed SB 1439, a bill that amended Section 84308 of the Political Reform Act (“the Act”). The changes took effect on January 1, 2023. The amendments significantly broadened the scope of the statute—most significantly by applying the statute’s restrictions to agencies whose members are directly elected by voters.

Section 84308 prohibits certain officials, including local elected officials, from taking part in an entitlement for use proceeding if the official has received a contribution exceeding $250 from a party or participant in the proceeding within the preceding 12 months. An official is also prohibited from accepting, soliciting, or directing a contribution exceeding $250 from a party or participant in the proceeding for 12 months after a final decision is rendered in such a proceeding.

As of January 1, 2023, Section 84308 now operates differently in two key ways:

1. Section 84308 now applies to agencies whose members are directly elected by voters including local elected officials such as city councilmembers and county supervisors serving on their respective boards; and

2. Officials are prohibited from accepting, soliciting, or directing a contribution exceeding $250 from a party or participant for 12 months after the final decision of a proceeding.

In September 2024, Governor Newsom signed SB 1243 (Attachment B) amending the law (Attachment C) effective January 1, 2025 with the following significant changes:
• Raises the threshold of a potentially disqualifying campaign contribution from $250 to $500 or more within the twelve (12) months before an item is “pending” before the elected official;
• Extends the period of time that a potentially disqualifying campaign contribution can be “cured” through the return of the contribution from 14 to 30 days; • Exempts City Attorneys and County Counsels from the law, where the attorney is not the final decision maker; and
• Clarifies when a government decision is “pending” such that the campaign contribution restrictions are triggered.

Contribution Limits
AB 571, effective January 1, 2021, applies a default campaign contribution limit to city candidates when the city has not already enacted a contribution limit. As such, the City of Stanton currently follows the California State Contribution Limits as published by the California Fair Political Practices Commission (FPPC). For the period from January 1, 2023 – December 31, 2024, the limits were as follows (Attachment D):

Contributor Source
• Person (individual, business entity, committee/PAC) $5,500 • Small Contributor Committee $5,500
• Political Party $5,500
ANALYSIS:

As a follow-up to the Council’s direction from its meeting of November 28, 2023, Council invited Mr. David Burke, President, Citizens Take Action, to present on campaign finance laws and transparency in municipal government at its meeting of February 27, 2024.

Citizens Take Action defines itself as a nonpartisan, nonprofit organization. As part of his presentation, Mr. Burke provided an overview of his report, “A Report Card on Campaign Finance Laws and Transparency in Orange County Municipal Government (2022)1. Of the 34 cities “graded”, 12 cities received A grades, 2 cities received B grades, 1 city received a C grade, 11 cities received D grades, and 8 cities received F grades. 1 https://citizenstakeaction.org/wp-content/uploads/2022/06/OC-Report-Card-060822.pdf The City of Stanton was graded as follows:

Citizens Take Action also provided a sample campaign election regulations ordinance covering the following topics (Attachment E):
• Campaign contribution limits
• Aggregation of contributions
• Restrictions on transfers
• Prohibition on contributions by city contractors and developers • Money, goods, and services received treated as contributions • Fundraising window
• Notification of independent expenditures
• Duplication of a candidate’s campaign materials
• Campaign statements
• Retention of records
• Enforcement
Another source assessing campaign finances is Common Cause California, which defines itself as a nonpartisan, grassroots organization. In 2024, they issued a report titled, “Local Dollars and Local Democracy – A Comprehensive Analysis and Index of Campaign Finance Laws in California’s Cities”2. The report makes the following findings:
2 https://www.commoncause.org/california/wp-content/uploads/2024/05/CA-Municipal-Index-Reportv5-final5_8_2024.pdf • Extent and quality of municipal campaign finance laws o Because of requirements in Assembly Bill (AB) 571 (2019), 470 out of 482 California cities, or 98% of all CA cities, have campaign contribution limits. o Because of requirements in Senate Bill (SB) 1439 (2022), all 482 cities have an anti-pay-to-play law.
• Laws that limit who can give to a campaign, when, and how much can be given o 180 California cities, or 37% of all CA cities, have self-imposed campaign finance reform (i.e., reform other than what is required by state law). o 143 California cities, or 30%, have self-imposed campaign contribution limits.
o 109 California cities, or 23%, have campaign contributions limits that are $1,000 or less.
o 26 California cities, or 5%, limit the time a candidate can fundraise for local office.
• Anti-pay-to-play laws
o 15 California cities, or 3%, have campaign-contribution-related recusal requirements (other than what is required in state law) for electeds and/or candidates with decision-making power at city hall.
• Laws that increase campaign finance transparency
o 99 California cities, or 21%, have campaign finance laws that generally increase transparency in local elections.
o 37 California cities, or 8%, require campaign ad disclosures that go above and beyond what is required by state law.
• Enforcement and oversight of campaign finance laws
o 131 California cities, or 27%, have deterrent penalties for campaign finance violations.
o 54 California cities, or 11%, have complaint procedures in their campaign finance laws.
o 58 California cities, or 12%, have curing provisions for local campaign finance violations.

FISCAL IMPACT:

There is no fiscal impact associated with the recommended actions.

ENVIRONMENTAL IMPACT:

In accordance with the requirements of California Environmental Quality Act (“CEQA”), the project is exempt pursuant to Sections 15378(a) and 15061(b)(3) of the State CEQA Guidelines (Title 14 of the California Code of Regulations).

PUBLIC NOTIFICATION:

Public notice was made through the regular agenda process.

STRATEGIC PLAN OBJECTIVE:

Obj. No. 6: Maintain and promote a responsive, high quality and transparent government.

Prepared by: Hannah Shin-Heydorn, City Manager
Reviewed by: Patricia A. Vazquez, City Clerk
Reviewed by: HongDao Nguyen, City Attorney
Approved by: Hannah Shin-Heydorn, City Manager
Attachments:

A. Senate Bill No. 1439 (SB 1439)
B. Senate Bill No. 1243 (SB 1243)
C. Senate Bill No. 1439 (SB 1439) Updated Text
D. California Fair Political Practices Commission California State Contribution Limits E. Sample Regulation Ordinance
Senate Bill No. 1439
CHAPTER 848
An act to amend Section 84308 of the Government Code, relating to the Political Reform Act of 1974.
[Approved by Governor September 29, 2022. Filed with
Secretary of State September 29, 2022.]
legislative counsel’s digest
SB 1439, Glazer. Campaign contributions: agency officers.

The Political Reform Act of 1974 prohibits an officer of an agency from accepting, soliciting, or directing a contribution of more than $250 from any party, participant, or a party or participant’s agent, while a proceeding involving a license, permit, or other entitlement for use is pending before the agency and for 3 months following the date a final decision is rendered in the proceeding, if the officer knows or has reasons to know that the participant has a financial interest, as defined. The act also prohibits a party, participant, or participant’s agent from making a contribution of more than $250 to an officer of the agency during the proceeding and 3 months following the date a final decision is rendered. The act defines “agency” for these purposes to mean any state or local government agency, except certain entities, including local government agencies whose members are directly elected by the voters.

This bill would remove the exception for local government agencies, thereby subjecting them to the prohibition described above. The bill would extend the prohibition on contributions from 3 to 12 months following the date a final decision is rendered in the proceeding. The bill would permit an officer who does not willfully and knowingly accept, solicit, or direct a prohibited contribution to cure the violation by returning it. The bill would require the party to a proceeding to disclose whether the party or the party’s agent has made a contribution of more than $250 in the 12 months before the proceeding.

A violation of the act is punishable as a misdemeanor. By expanding the scope of restrictions on contributions, this bill would expand the scope of an existing crime, and therefore would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

The Political Reform Act of 1974, an initiative measure, provides that the Legislature may amend the act to further the act’s purposes upon a 2 ⁄3
94 STATE OF CALIFORNIA

AUTHENTICATED

ELECTRONIC LEGAL MATERIAL
Attachment: A
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vote of each house of the Legislature and compliance with specified procedural requirements.

This bill would declare that it furthers the purposes of the act.

The people of the State of California do enact as follows:

SECTION 1. Section 84308 of the Government Code is amended to read:
84308. (a) The definitions set forth in this subdivision shall govern the interpretation of this section.
(1) “Party” means any person who files an application for, or is the subject of, a proceeding involving a license, permit, or other entitlement for use. (2) “Participant” means any person who is not a party but who actively supports or opposes a particular decision in a proceeding involving a license, permit, or other entitlement for use and who has a financial interest in the decision, as described in Article 1 (commencing with Section 87100) of Chapter 7. A person actively supports or opposes a particular decision in a proceeding if that person lobbies in person the officers or employees of the agency, testifies in person before the agency, or otherwise acts to influence officers of the agency.
(3) “Agency” means an agency as defined in Section 82003 except that it does not include the courts or any agency in the judicial branch of government, the Legislature, the Board of Equalization, or constitutional officers. However, this section applies to any person who is a member of an exempted agency but is acting as a voting member of another agency. (4) “Officer” means any elected or appointed officer of an agency, any alternate to an elected or appointed officer of an agency, and any candidate for elective office in an agency.
(5) “License, permit, or other entitlement for use” means all business, professional, trade, and land use licenses and permits and all other entitlements for use, including all entitlements for land use, all contracts (other than competitively bid, labor, or personal employment contracts), and all franchises.
(6) “Contribution” includes contributions to candidates and committees in federal, state, or local elections.
(b) While a proceeding involving a license, permit, or other entitlement for use is pending, and for 12 months following the date a final decision is rendered in the proceeding, an officer of an agency shall not accept, solicit, or direct a contribution of more than two hundred fifty dollars ($250) from any party or a party’s agent, or from any participant or a participant’s agent if the officer knows or has reason to know that the participant has a financial interest, as that term is used in Article 1 (commencing with Section 87100) of Chapter 7. This prohibition shall apply regardless of whether the officer accepts, solicits, or directs the contribution on the officer’s own behalf, or on behalf of any other officer, or on behalf of any candidate for office or on behalf of any committee.
94 Ch. 848 — 2 —
(c) Prior to rendering any decision in a proceeding involving a license, permit, or other entitlement for use pending before an agency, each officer of the agency who received a contribution within the preceding 12 months in an amount of more than two hundred fifty dollars ($250) from a party or from any participant shall disclose that fact on the record of the proceeding.

An officer of an agency shall not make, participate in making, or in any way attempt to use the officer’s official position to influence the decision in a proceeding involving a license, permit, or other entitlement for use pending before the agency if the officer has willfully or knowingly received a contribution in an amount of more than two hundred fifty dollars ($250) within the preceding 12 months from a party or a party’s agent, or from any participant or a participant’s agent if the officer knows or has reason to know that the participant has a financial interest in the decision, as that term is described with respect to public officials in Article 1 (commencing with Section 87100) of Chapter 7.
(d) (1) If an officer receives a contribution which would otherwise require disqualification under this section, and returns the contribution within 30 days from the time the officer knows, or should have known, about the contribution and the proceeding involving a license, permit, or other entitlement for use, the officer shall be permitted to participate in the proceeding.
(2) (A) Subject to subparagraph (B), if an officer accepts, solicits, or directs a contribution of more than two hundred fifty dollars ($250) during the 12 months after the date a final decision is rendered in the proceeding in violation of subdivision (b), the officer may cure the violation by returning the contribution, or the portion of the contribution in excess of two hundred fifty dollars ($250), within 14 days of accepting, soliciting, or directing the contribution, whichever comes latest.
(B) An officer may cure a violation as specified in subparagraph (A) only if the officer did not knowingly and willfully accept, solicit, or direct the prohibited contribution.
(C) An officer’s controlled committee, or the officer if no controlled committee exists, shall maintain records of curing any violation pursuant to this paragraph.
(e) (1) A party to a proceeding before an agency involving a license, permit, or other entitlement for use shall disclose on the record of the proceeding any contribution in an amount of more than two hundred fifty dollars ($250) made within the preceding 12 months by the party or the party’s agent.
(2) A party, or agent to a party, to a proceeding involving a license, permit, or other entitlement for use pending before any agency or a participant, or agent to a participant, in the proceeding shall not make a contribution of more than two hundred fifty dollars ($250) to any officer of that agency during the proceeding and for 12 months following the date a final decision is rendered by the agency in the proceeding. (3) When a closed corporation is a party to, or a participant in, a proceeding involving a license, permit, or other entitlement for use pending 94 — 3 — Ch. 848
before an agency, the majority shareholder is subject to the disclosure and prohibition requirements specified in this section.
(f) This section shall not be construed to imply that any contribution subject to being reported under this title shall not be so reported.

SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.

SEC. 3. The Legislature finds and declares that this bill furthers the purposes of the Political Reform Act of 1974 within the meaning of subdivision (a) of Section 81012 of the Government Code.

O
94 Ch. 848 — 4 —
SHARE THIS: Date Published: 09/30/2024 09:00 PM
SB-1243 Campaign contributions: agency officers. (2023-2024) Senate Bill No. 1243
CHAPTER 1017
An act to amend Section 84308 of the Government Code, relating to the Political Reform Act of 1974. [ Approved by Governor September 30, 2024. Filed with Secretary of State September 30, 2024. ]

LEGISLATIVE COUNSEL'S DIGEST
SB 1243, Dodd. Campaign contributions: agency officers.

The Political Reform Act of 1974 prohibits certain contributions of more than $250 to an officer of an agency by any party, participant, or party or participant’s agent in a proceeding while a proceeding involving a license, permit, or other entitlement for use is pending before the agency and for 12 months following the date a final decision is rendered in the proceeding, as specified. The act requires disclosure on the record of the proceeding, as specified, of certain contributions of more than $250 within the preceding 12 months to an officer from a party or participant, or party’s agent. The act disqualifies an officer from participating in a decision in a proceeding if the officer has willfully or knowingly received a contribution of more than $250 from a party or a party’s agent, or a participant or a participant’s agent, as specified. The act allows an officer to cure certain violations of these provisions by returning a contribution, or the portion of the contribution of in excess of $250, within 14 days of accepting, soliciting, or receiving the contribution, whichever comes latest.

This bill would raise the threshold for contributions regulated by these provisions to $500, as specified. The bill would extend the period during which an officer may cure a violation to within 30 days of accepting, soliciting, or directing the contribution, whichever is latest. The bill would specify that a person is not a “participant” for the purposes of these provisions if their financial interest in a decision results solely from an increase or decrease in membership dues. The bill would exempt from these provisions contracts valued under $50,000, contracts between 2 or more government agencies, contracts where no party receives financial compensation, and the periodic review or renewal of development agreements, as specified, from these provisions.

This bill would incorporate additional changes to Section 84308 of the Government Code proposed by SB 1181 to be operative only if this bill and SB 1181 are enacted and this bill is enacted last.

The Political Reform Act of 1974, an initiative measure, provides that the Legislature may amend the act to further the act’s purposes upon a 2
/3
vote of each house of the Legislature and compliance with specified procedural requirements.

This bill would declare that it furthers the purposes of the act.

Vote: 2/3 Appropriation: no Fiscal Committee: no Local Program: no Home Bill Information California Law Publications Other Resources My Subscriptions My Favorites Attachment: B
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THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

SECTION 1. Section 84308 of the Government Code is amended to read:
84308. (a) The definitions set forth in this subdivision shall govern the interpretation of this section. (1) “Party” means any person who files an application for, or is the subject of, a proceeding involving a license, permit, or other entitlement for use.
(2) “Participant” means any person who is not a party but who actively supports or opposes a particular decision in a proceeding involving a license, permit, or other entitlement for use and who has a financial interest in the decision, as described in Article 1 (commencing with Section 87100) of Chapter 7. A person actively supports or opposes a particular decision in a proceeding if that person lobbies in person the officers or employees of the agency, testifies in person before the agency, or otherwise acts to influence officers of the agency. A person is not a “participant” under this paragraph if their financial interest in the decision results solely from an increase or decrease in membership dues. (3) “Agency” means an agency as defined in Section 82003 except that it does not include the courts or any agency in the judicial branch of government, the Legislature, the Board of Equalization, or constitutional officers. However, this section applies to any person who is a member of an exempted agency but is acting as a voting member of another agency.
(4) “Officer” means any elected or appointed officer of an agency, any alternate to an elected or appointed officer of an agency, and any candidate for elective office in an agency. (5) (A) Except as provided in subparagraph (B), “license, permit, or other entitlement for use” means all business, professional, trade, and land use licenses and permits and all other entitlements for use, including all entitlements for land use, all contracts, and all franchises. (B) “License, permit, or other entitlement for use” does not include any of the following:
(i) Competitively bid contracts that are required by law, agency policy, or agency rule to be awarded pursuant to a competitive process.
(ii) Labor contracts.
(iii) Personal employment contracts.
(iv) Contracts valued under fifty thousand dollars ($50,000). (v) Contracts where no party receives financial compensation. (vi) Contracts between two or more agencies.
(vii) The periodic review or renewal of development agreements unless there is a material modification or amendment proposed to the agreement. Non-material modifications or amendments may be approved by agency staff.
(6) “Contribution” includes contributions to candidates and committees in federal, state, or local elections. (7) “Pending” in a proceeding involving a license, permit, or other entitlement for use means either of the following:
(A) For an officer, when either of the following occurs:
(i) An item involving the license, permit, or other entitlement for use is placed on the agenda for discussion or decision at a public meeting of the body of which the officer is a member. (ii) The officer knows a proceeding involving a license, permit, or other entitlement for use is within the jurisdiction of the officer’s agency for its decision or other action, and it is reasonably foreseeable that the decision will come before the officer in the officer’s decisionmaking capacity. (B) For a party or party’s agent, or a participant or participant’s agent, when an application is filed with an agency, or, if the proceeding process does not require an application, when the proceeding is before the agency for its decision or other action.
(b) (1) While a proceeding involving a license, permit, or other entitlement for use is pending, and for 12 months following the date a final decision is rendered in the proceeding, an officer of an agency shall not accept, solicit, or direct a contribution of more than five hundred dollars ($500) from any party or a party’s agent, or from any participant or a participant’s agent if the officer knows or has reason to know that the participant has a financial interest, as that term is used in Article 1 (commencing with Section 87100) of Chapter 7. This prohibition applies regardless of whether the officer accepts, solicits, or directs the contribution on the officer’s own behalf, or on behalf of any other officer, or on behalf of any candidate for office or on behalf of any committee. (2) With respect to elected officers, paragraph (1) applies only if the elected officer or the body of which they are a member has the authority to make any decision or recommendation in the proceeding. (c) (1) Before rendering any decision in a proceeding involving a license, permit, or other entitlement for use, each officer of the agency who received a contribution within the preceding 12 months in an amount of more than five hundred dollars ($500) from a party or from any participant shall disclose that fact on the record of the proceeding. An officer of an agency shall not make, participate in making, or in any way attempt to use the officer’s official position to influence the decision in a proceeding involving a license, permit, or other entitlement for use if the officer has willfully or knowingly received a contribution in an amount of more than five hundred dollars ($500) within the preceding 12 months from a party or a party’s agent, or from any participant or a participant’s agent if the officer knows or has reason to know that the participant has a financial interest in the decision, as that term is described with respect to public officials in Article 1 (commencing with Section 87100) of Chapter 7.
(2) With respect to elected officers, paragraph (1) applies only if the elected officer or the body of which they are a member has the authority to make any decision or recommendation in the proceeding. (d) (1) If an officer receives a contribution that would otherwise require disqualification under this section, and returns the contribution within 30 days from the time the officer makes any decision, or knows, or should have known, about the contribution and the proceeding involving a license, permit, or other entitlement for use, whichever comes last, the officer shall be permitted to participate in the proceeding. (2) (A) Subject to subparagraph (B), if an officer accepts, solicits, or directs a contribution of more than five hundred dollars ($500) during the 12 months after the date the final decision is rendered in violation of subdivision (b), the officer may cure the violation by returning the contribution, or the portion of the contribution in excess of five hundred dollars ($500), within 30 days of accepting, soliciting, or directing the contribution, whichever comes latest.
(B) An officer may cure a violation as specified in subparagraph (A) only if the officer did not knowingly and willfully accept, solicit, or direct the prohibited contribution. (C) An officer’s controlled committee, or the officer if no controlled committee exists, shall maintain records of curing any violation pursuant to this paragraph.
(e) (1) A party to a proceeding before an agency involving a license, permit, or other entitlement for use shall disclose on the record of the proceeding any contribution in an amount of more than five hundred dollars ($500) made within the preceding 12 months before the date that any decision is rendered by the agency by the party or the party’s agent.
(2) A party to a proceeding involving a license, permit, or other entitlement for use pending before any agency or a participant in the proceeding shall not make a contribution of more than five hundred dollars ($500) to any officer of that agency during the proceeding and for 12 months following the date the final decision is rendered by the agency in the proceeding.
(3) An agent to a party or participant shall not make a contribution in any amount to an officer during the time periods described in paragraph (2).
(4) When a closed corporation is a party to, or a participant in, a proceeding involving a license, permit, or other entitlement for use pending before an agency, the majority shareholder is subject to the disclosure and prohibition requirements specified in this section.
(f) This section shall not be construed to imply that any contribution subject to being reported under this title shall not be so reported.
(g) For purposes of this section, in determining whether a contribution has exceeded five hundred dollars ($500), the contributions of an agent shall not be aggregated with contributions from a party or participant. (h) (1) Except as provided in paragraph (2), the provisions of this act are severable. If any provision of this act or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
(2) Subdivision (g) is not severable from paragraph (3) of subdivision (e) if paragraph (3) of subdivision (e) is held invalid in a final decision of a court of competent jurisdiction. If that occurs, subdivision (g) shall become inoperative on the date of that final decision.

SEC. 1.5. Section 84308 of the Government Code is amended to read:
84308. (a) The definitions set forth in this subdivision shall govern the interpretation of this section. (1) “Party” means any person who files an application for, or is the subject of, a proceeding involving a license, permit, or other entitlement for use.
(2) “Participant” means any person who is not a party but who actively supports or opposes a particular decision in a proceeding involving a license, permit, or other entitlement for use and who has a financial interest in the decision, as described in Article 1 (commencing with Section 87100) of Chapter 7. A person actively supports or opposes a particular decision in a proceeding if that person lobbies in person the officers or employees of the agency, testifies in person before the agency, or otherwise acts to influence officers of the agency. A person is not a “participant” under this paragraph if their financial interest in the decision results solely from an increase or decrease in membership dues. (3) “Agency” means an agency as defined in Section 82003 except that it does not include the courts or any agency in the judicial branch of government, the Legislature, the Board of Equalization, or constitutional officers. However, this section applies to any person who is a member of an exempted agency but is acting as a voting member of another agency.
(4) “Officer” means any elected or appointed officer of an agency, any alternate to an elected or appointed officer of an agency, and any candidate for elective office in an agency, other than a city attorney or county counsel providing legal advice to the agency who does not have the authority to make a final decision in the proceeding.
(5) (A) Except as provided in subparagraph (B), “license, permit, or other entitlement for use” means all business, professional, trade, and land use licenses and permits and all other entitlements for use, including all entitlements for land use, all contracts, and all franchises. (B) “License, permit, or other entitlement for use” does not include any of the following:
(i) Competitively bid contracts that are required by law, agency policy, or agency rule to be awarded pursuant to a competitive process.
(ii) Labor contracts.
(iii) Personal employment contracts.
(iv) Contracts valued under fifty thousand dollars ($50,000). (v) Contracts where no party receives financial compensation. (vi) Contracts between two or more agencies.
(vii) The periodic review or renewal of development agreements unless there is a material modification or amendment proposed to the agreement. Non-material modifications or amendments may be approved by agency staff.
(viii) The periodic review or renewal of competitively bid contracts unless there are material modifications or amendments proposed to the agreement that are valued at more than 10 percent of the value of the contract or fifty thousand dollars ($50,000), whichever is less. Non-material modifications or amendments may be approved by agency staff.
(ix) Modification of or amendments to contracts that are exempt under this subparagraph, other than competitively bid contracts.
(6) “Contribution” includes contributions to candidates and committees in federal, state, or local elections. (7) “Pending” in a proceeding involving a license, permit, or other entitlement for use means either of the following:
(A) For an officer, when either of the following occurs:
(i) An item involving the license, permit, or other entitlement for use is placed on the agenda for discussion or decision at a public meeting of the body of which the officer is a member. (ii) The officer knows a proceeding involving a license, permit, or other entitlement for use is within the jurisdiction of the officer’s agency for its decision or other action, and it is reasonably foreseeable that the decision will come before the officer in the officer’s decisionmaking capacity. (B) For a party or party’s agent, or a participant or participant’s agent, when an application is filed with an agency, or, if the proceeding process does not require an application, when the proceeding is before the agency for its decision or other action.
(b) (1) While a proceeding involving a license, permit, or other entitlement for use is pending, and for 12 months following the date a final decision is rendered in the proceeding, an officer of an agency shall not accept, solicit, or direct a contribution of more than five hundred dollars ($500) from any party or a party’s agent, or from any participant or a participant’s agent if the officer knows or has reason to know that the participant has a financial interest, as that term is used in Article 1 (commencing with Section 87100) of Chapter 7. This prohibition applies regardless of whether the officer accepts, solicits, or directs the contribution on the officer’s own behalf, or on behalf of any other officer, or on behalf of any candidate for office or on behalf of any committee. (2) With respect to elected officers, paragraph (1) applies only if the elected officer or the body of which they are a member has the authority to make any decision or recommendation in the proceeding. (c) (1) Before rendering any decision in a proceeding involving a license, permit, or other entitlement for use, each officer of the agency who received a contribution within the preceding 12 months in an amount of more than five hundred dollars ($500) from a party or from any participant shall disclose that fact on the record of the proceeding. An officer of an agency shall not make, participate in making, or in any way attempt to use the officer’s official position to influence the decision in a proceeding involving a license, permit, or other entitlement for use if the officer has willfully or knowingly received a contribution in an amount of more than five hundred dollars ($500) within the preceding 12 months from a party or a party’s agent, or from any participant or a participant’s agent if the officer knows or has reason to know that the participant has a financial interest in the decision, as that term is described with respect to public officials in Article 1 (commencing with Section 87100) of Chapter 7.
(2) With respect to elected officers, paragraph (1) applies only if the elected officer or the body of which they are a member has the authority to make any decision or recommendation in the proceeding. (d) (1) If an officer receives a contribution that would otherwise require disqualification under this section, and returns the contribution within 30 days from the time the officer makes any decision, or knows, or should have known, about the contribution and the proceeding involving a license, permit, or other entitlement for use, whichever comes last, the officer shall be permitted to participate in the proceeding. (2) (A) Subject to subparagraph (B), if an officer accepts, solicits, or directs a contribution of more than five hundred dollars ($500) during the 12 months after the date the final decision is rendered in violation of subdivision (b), the officer may cure the violation by returning the contribution, or the portion of the contribution in excess of five hundred dollars ($500), within 30 days of accepting, soliciting, or directing the contribution, whichever comes latest.
(B) An officer may cure a violation as specified in subparagraph (A) only if the officer did not knowingly and willfully accept, solicit, or direct the prohibited contribution. (C) An officer’s controlled committee, or the officer if no controlled committee exists, shall maintain records of curing any violation pursuant to this paragraph.
(e) (1) A party to a proceeding before an agency involving a license, permit, or other entitlement for use shall disclose on the record of the proceeding any contribution in an amount of more than five hundred dollars ($500) made within the preceding 12 months before the date that any decision is rendered by the agency by the party or the party’s agent.
(2) A party to a proceeding involving a license, permit, or other entitlement for use pending before any agency or a participant in the proceeding shall not make a contribution of more than five hundred dollars ($500) to any officer of that agency during the proceeding and for 12 months following the date the final decision is rendered by the agency in the proceeding.
(3) An agent to a party or participant shall not make a contribution in any amount to an officer during the time periods described in paragraph (2).
(4) When a closed corporation is a party to, or a participant in, a proceeding involving a license, permit, or other entitlement for use pending before an agency, the majority shareholder is subject to the disclosure and prohibition requirements specified in this section.
(f) This section shall not be construed to imply that any contribution subject to being reported under this title shall not be so reported.
(g) For the purposes of this section, in determining whether a contribution has exceeded five hundred dollars ($500), the contributions of an agent shall not be aggregated with contributions from a party or participant. (h) (1) A person is the “agent” of a party to, or a participant in, a pending proceeding involving a license, permit, or other entitlement for use only if the person represents that party or participant for compensation and appears before or otherwise communicates with an agency for the purpose of influencing the proceeding on behalf of a party or participant.
(2) If an individual acting as an agent is also acting as an employee or member of a law, architectural, engineering, or consulting firm, or a similar entity or corporation, both the entity or corporation and the individual are “agents.”
(3) “Agent” includes a lobbyist registered to lobby the agency and who otherwise meets the requirements of paragraph (1).
(4) “Communicate with the agency for the purpose of influencing the proceeding” does not include either of the following:
(A) Preparing drawings or submissions of an architectural, engineering, or similar nature for a client to submit in a proceeding before the agency if both of the following conditions are met:
(i) The work is performed pursuant to the person’s profession. (ii) The person does not make any contact with the agency other than contact with agency staff concerning the process or evaluation of the documents prepared by the person. (B) Providing technical data or analysis to an agency if the person does not otherwise engage in direct communication for the purpose of influencing the proceeding. (i) (1) Except as provided in paragraph (2), the provisions of this act are severable. If any provision of this act or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
(2) Subdivision (g) is not severable from paragraph (3) of subdivision (e) if paragraph (3) of subdivision (e) is held invalid in a final decision of a court of competent jurisdiction. If that occurs, subdivision (g) shall become inoperative on the date of that final decision.

SEC. 2. The Legislature finds and declares that banning agents of parties and participants from contributing to officers in specified situations, as provided in Section 1 of this act, is necessary and narrowly tailored to address the state interest of preventing corruption and the appearance of corruption.

SEC. 3. Section 1.5 of this bill incorporates amendments to Section 84308 of the Government Code proposed by both this bill and Senate Bill 1181. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2025, (2) each bill amends Section 84308 of the Government Code, and (3) this bill is enacted after Senate Bill 1181, in which case Section 1 of this bill shall not become operative.

SEC. 4. The Legislature finds and declares that this bill furthers the purposes of the Political Reform Act of 1974 within the meaning of subdivision (a) of Section 81012 of the Government Code.

Senate Bill No. 1439
CHAPTER 848
An act to amend Section 84308 of the Government Code, relating to the Political Reform Act of 1974.
[Approved by Governor September 29, 2022. Filed with
Secretary of State September 29, 2022.]
legislative counsel’s digest
SB 1439, Glazer. Campaign contributions: agency officers.

The Political Reform Act of 1974 prohibits an officer of an agency from accepting, soliciting, or directing a contribution of more than $250 from any party, participant, or a party or participant’s agent, while a proceeding involving a license, permit, or other entitlement for use is pending before the agency and for 3 months following the date a final decision is rendered in the proceeding, if the officer knows or has reasons to know that the participant has a financial interest, as defined. The act also prohibits a party, participant, or participant’s agent from making a contribution of more than $250 to an officer of the agency during the proceeding and 3 months following the date a final decision is rendered. The act defines “agency” for these purposes to mean any state or local government agency, except certain entities, including local government agencies whose members are directly elected by the voters.

This bill would remove the exception for local government agencies, thereby subjecting them to the prohibition described above. The bill would extend the prohibition on contributions from 3 to 12 months following the date a final decision is rendered in the proceeding. The bill would permit an officer who does not willfully and knowingly accept, solicit, or direct a prohibited contribution to cure the violation by returning it. The bill would require the party to a proceeding to disclose whether the party or the party’s agent has made a contribution of more than $250 in the 12 months before the proceeding.

A violation of the act is punishable as a misdemeanor. By expanding the scope of restrictions on contributions, this bill would expand the scope of an existing crime, and therefore would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

The Political Reform Act of 1974, an initiative measure, provides that the Legislature may amend the act to further the act’s purposes upon a 2 ⁄3
94 STATE OF CALIFORNIA

AUTHENTICATED

ELECTRONIC LEGAL MATERIAL
Attachment: C
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vote of each house of the Legislature and compliance with specified procedural requirements.

This bill would declare that it furthers the purposes of the act.

The people of the State of California do enact as follows:

SECTION 1. Section 84308 of the Government Code is amended to read:
84308. (a) The definitions set forth in this subdivision shall govern the interpretation of this section.
(1) “Party” means any person who files an application for, or is the subject of, a proceeding involving a license, permit, or other entitlement for use. (2) “Participant” means any person who is not a party but who actively supports or opposes a particular decision in a proceeding involving a license, permit, or other entitlement for use and who has a financial interest in the decision, as described in Article 1 (commencing with Section 87100) of Chapter 7. A person actively supports or opposes a particular decision in a proceeding if that person lobbies in person the officers or employees of the agency, testifies in person before the agency, or otherwise acts to influence officers of the agency.
(3) “Agency” means an agency as defined in Section 82003 except that it does not include the courts or any agency in the judicial branch of government, the Legislature, the Board of Equalization, or constitutional officers. However, this section applies to any person who is a member of an exempted agency but is acting as a voting member of another agency. (4) “Officer” means any elected or appointed officer of an agency, any alternate to an elected or appointed officer of an agency, and any candidate for elective office in an agency.
(5) “License, permit, or other entitlement for use” means all business, professional, trade, and land use licenses and permits and all other entitlements for use, including all entitlements for land use, all contracts (other than competitively bid, labor, or personal employment contracts), and all franchises.
(6) “Contribution” includes contributions to candidates and committees in federal, state, or local elections.
(b) While a proceeding involving a license, permit, or other entitlement for use is pending, and for 12 months following the date a final decision is rendered in the proceeding, an officer of an agency shall not accept, solicit, or direct a contribution of more than two hundred fifty dollars ($250) from any party or a party’s agent, or from any participant or a participant’s agent if the officer knows or has reason to know that the participant has a financial interest, as that term is used in Article 1 (commencing with Section 87100) of Chapter 7. This prohibition shall apply regardless of whether the officer accepts, solicits, or directs the contribution on the officer’s own behalf, or on behalf of any other officer, or on behalf of any candidate for office or on behalf of any committee.
94 Ch. 848 — 2 —
(c) Prior to rendering any decision in a proceeding involving a license, permit, or other entitlement for use pending before an agency, each officer of the agency who received a contribution within the preceding 12 months in an amount of more than two hundred fifty dollars ($250) from a party or from any participant shall disclose that fact on the record of the proceeding.

An officer of an agency shall not make, participate in making, or in any way attempt to use the officer’s official position to influence the decision in a proceeding involving a license, permit, or other entitlement for use pending before the agency if the officer has willfully or knowingly received a contribution in an amount of more than two hundred fifty dollars ($250) within the preceding 12 months from a party or a party’s agent, or from any participant or a participant’s agent if the officer knows or has reason to know that the participant has a financial interest in the decision, as that term is described with respect to public officials in Article 1 (commencing with Section 87100) of Chapter 7.
(d) (1) If an officer receives a contribution which would otherwise require disqualification under this section, and returns the contribution within 30 days from the time the officer knows, or should have known, about the contribution and the proceeding involving a license, permit, or other entitlement for use, the officer shall be permitted to participate in the proceeding.
(2) (A) Subject to subparagraph (B), if an officer accepts, solicits, or directs a contribution of more than two hundred fifty dollars ($250) during the 12 months after the date a final decision is rendered in the proceeding in violation of subdivision (b), the officer may cure the violation by returning the contribution, or the portion of the contribution in excess of two hundred fifty dollars ($250), within 14 days of accepting, soliciting, or directing the contribution, whichever comes latest.
(B) An officer may cure a violation as specified in subparagraph (A) only if the officer did not knowingly and willfully accept, solicit, or direct the prohibited contribution.
(C) An officer’s controlled committee, or the officer if no controlled committee exists, shall maintain records of curing any violation pursuant to this paragraph.
(e) (1) A party to a proceeding before an agency involving a license, permit, or other entitlement for use shall disclose on the record of the proceeding any contribution in an amount of more than two hundred fifty dollars ($250) made within the preceding 12 months by the party or the party’s agent.
(2) A party, or agent to a party, to a proceeding involving a license, permit, or other entitlement for use pending before any agency or a participant, or agent to a participant, in the proceeding shall not make a contribution of more than two hundred fifty dollars ($250) to any officer of that agency during the proceeding and for 12 months following the date a final decision is rendered by the agency in the proceeding. (3) When a closed corporation is a party to, or a participant in, a proceeding involving a license, permit, or other entitlement for use pending 94 — 3 — Ch. 848
before an agency, the majority shareholder is subject to the disclosure and prohibition requirements specified in this section.
(f) This section shall not be construed to imply that any contribution subject to being reported under this title shall not be so reported.

SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.

SEC. 3. The Legislature finds and declares that this bill furthers the purposes of the Political Reform Act of 1974 within the meaning of subdivision (a) of Section 81012 of the Government Code.

O
94 Ch. 848 — 4 —
California Fair Political Practices Commission
California State Contribution Limits
(Effective January 1, 2023 ‐ December 31, 2024)
Candidates seeking a state office and committees that make contributions to state candidates are subject to contribution limits from a single source. Effective January 1, 2021 a state campaign contribution limit will by default apply to city and county candidates when the city or county does not have laws addressing a contribution limit on such candidates. (Sections 85301 ‐ 85303.) Contributions from affiliated entities are aggregated for purposes of the limits. (Regulation 18215.1.) The chart below shows the current limits per contributor for state offices and city and county candidates when the city or county does not have laws addressing a contribution limit on such candidates. The primary, general, special, and special run‐off elections are considered separate elections. Contribution limits to candidates apply to each election. Contribution limits to officeholder and other committees apply on a calendar year basis. Contact your city or county about contribution limits for local offices. The state campaign contribution limit will by default apply to city and county candidates when the city or county does not have laws addressing a contribution limit on such candidates.

Contribution Limits to State and Local* Candidates Per Election Contributor
Sources
Candidate or Officeholder Person (individual, business
entity, committee/PAC)
Small Contributor Committee
(see definition on page 2)
Political Party
City and County Candidates subject to Section 85301 (d) $5,500 $5,500 $5,500 Senate and Assembly $5,500 $10,900 No Limit
CalPERS/CalSTRS $5,500 $10,900 No Limit
Lt. Governor, Secretary of State, Attorney General,
Treasurer, Controller, Supt. of Public Instruction,
Insurance Commissioner, and Board
of Equalization
$9,100 $18,200 No Limit
Governor $36,400 $36,400 No Limit
*State campaign contribution limit will by default apply to city and county candidates when the city or county does not have laws addressing a contribution limit on such candidates.

Contributions to Other State Committees Per Calendar Year Contributor Sources
Committee Person (individual, business entity,
committee/PAC)
Committee (Not Political Party) that Contributes to State Candidates (PAC) $9,100 Political Party Account for State Candidates $45,500
Small Contributor Committee $200
Committee Account NOT for State Candidates (Ballot Measure, PAC, Political Party) No Limit* *State committees (including political parties and PACs)may receive contributions in excess of the limits identified above as long as the contributions are NOT used for state candidate contributions. (Regulation 18534.) Contributions to State Officeholder Committees Per Calendar Year Contributor Sources
Committee
Any Source (Person, Small
Contributor Committee or
Political Party)
Aggregate From All Sources
Senate and Assembly $4,500 $75,500
CalPERS/CalSTRS $4,500 $75,500
Lt. Governor, Secretary of State, Attorney General,
Treasurer, Controller, Supt. of Public Instruction,
Insurance Commissioner, and Board of Equalization
$7,500 $151,000
Governor $30,200 $301,900
Attachment: D
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California Fair Political Practices Commission
California State Contribution Limits
(Effective January 1, 2023 ‐ December 31, 2024)
The contribution limits are effective for elections held between January 1, 2023 and December 31, 2024. (Regulation 18545.) These limits do not apply to contributions made to elections in previous years. Such contributions are subject to the limits in place for that year; see previous charts.

Legal Defense Funds
Contributions raised for a legal defense fund are not subject to contribution limits or the voluntary expenditure ceiling. However, a candidate or officeholder may raise, in total, no more than is reasonably necessary to cover attorney’sfees and other legal costs related to the proceeding for which the fund is created. (Section 85304; Regulation 18530.4.)
Recall Elections
A state officeholder and city or county officeholder subject to Section 85301 (d) who is the subject of a recall may set up a separate committee to oppose the qualification of the recall measure and, if the recall petition qualifies, the recall election.

Neither contribution limits nor voluntary expenditure ceilings apply to the committee to oppose the recall that is controlled by the officeholder who is the target of the recall attempt. Candidates running to replace an officeholder who is the target of a recall are subject to the contribution limits and the expenditure limits applicable to the election for that office. (Section 85315; Regulation 18531.5.)
Ballot Measure Committees
Contributions to ballot measure committees controlled by a candidate for elective state office or a candidate for elective city or county office subject to Section 85301 (d) are not limited.

Contributions from State Candidates and Candidatessubject to Section 85301 (d)
A state candidate or candidate for elective city or county office subject to Section 85301 (d) may not contribute more than $5,500 to a committee controlled by another state candidate or candidate for elective city or county office subject to Section 85301 (d) (This limit applies on a per election basis and includes, in the aggregate, contributions made from the candidate’s personal funds and from campaign funds. (Section 85305; Regulation 18535.) This limit does not apply to a committee controlled by a state candidate or a committee controlled by a candidate for elective city or county office subject to Section 85301 (d) to oppose their recall or their contributions made to a legal defense fund established by a candidate for elective state office or candidate for elective city or county office subject to Section 85301(d). It also does not apply to contributions made by a candidate for elective state office or a candidate for elective city or county office subject to Section 85301 (d) to a ballot measure committee controlled by another state candidate or candidate for elective city or county office subject to Section 85301 (d). Please note there are certain rules applicable to use of funds held by state officeholder committees. (See Regulation 18531.62.)
CommunicationsIdentifying State Candidates
Any committee that makes a payment or a promise of payment totaling $50,000 or more for a communication that:

Officeholder Committees
Officeholder contributions must be cumulated (in full) with any other contributions from the same contributor(s) for any other future elective state office or elective city or county office subject to Section 85301 (d) for which the officeholder maintains a controlled committee during the term of office in which the contribution is received.

Contributions to candidates for future elections and to their officeholder account are cumulated for purposes of contribution limits. (Regulation 18531.62.)
Contributionsfrom State Lobbyists
A state lobbyist may not contribute to a state officeholder’s or candidate’s committee if the lobbyist is registered to lobby the agency of the elected officer or the agency to which
the candidate is seeking election. The lobbyist also may not contribute to a local committee controlled by any such state candidate. (Section 85702; Regulation 18572.) In addition, effective January 1, 2015, lobbyists and lobbying firms may no longer take advantage of the $500 or less home/office fundraiser exception that is available to other individuals and entities. (Section 82015(f).) Local Elections
Many cities and counties have local contribution limits and other election rules. “Local Campaign Ordinances” are listed on the FPPC’s website. Check with your city or county about contribution limitsfor local elections. A State campaign contribution limit will by default apply to city and county candidates when the city or county does not have laws addressing a contribution limit on such candidates.

Definitions
Person: An individual, proprietorship, firm, partnership, joint venture, syndicate, business trust, company, corporation, limited liability company, association, committee, and any other organization or group of persons acting in concert. (Section 82047.) Small Contributor Committee: Any committee that meets all of the following criteria:
a) The committee has been in existence for at
least six months.
b) The committee receives contributionsfrom 100
or more persons.
c) No one person has contributed to the committee
more than $200 per calendar year.
d) The committee makes contributionsto five or more
candidates. (Section 85203; Regulation 18503.)
Political Party Committee: The state central committee
or county central committee of an organization that meets the requirements for recognition as a political party under Elections Code Section 5100. (Section 85205.)
www.fppc.ca.gov
FPPC Advice: [email protected] (1.866.275.3772 )
FPPC EAEU. • 007-12-2022 • Page 2 of 2

1. Clearly identifies a state candidate; but

2. Does not expressly advocate the election or defeat of the candidate; and

3. Is disseminated, broadcast, or otherwise published within 45 days of an election, may not receive a contribution from any single source of more than $45,500 in a calendar year if the communication is made at the behest of the candidate
featured in the communication. (Section 85310.)
(
(
(
(

ELECTION CAMPAIGN REGULATIONS
Intent and Purpose Reasons for ordinance
In enacting this chapter, the City Council finds and declares that moderate monetary contributions to political campaigns are a legitimate form of participation in the American political process. It is the policy of this City to protect the integrity of the electoral process, and to serve the best interests of the citizens of this City by regulating campaign finance.

Inherent in the high cost of election campaigning is the problem of improper influence, real or potential, exercised by campaign contributors over elected officials. It is the purpose and intent of the City Council in enacting this chapter:

To place realistic and enforceable limits on the amounts of money that may be contributed to political campaigns in city elections.

To preserve an orderly political forum in which individuals may express themselves effectively.

To prevent the exercise by campaign contributors of potential undue or improper influence over elected officials.

To promote participation in government and foster trust that the democratic process is not subverted by affluent special interest groups.

To inform the public of the sources and objects of campaign contributions and expenditures.

To provide for the full and fair enforcement of the provisions of this chapter.

To encourage candidate adherence to election regulations by making them easier to understand.

Interpretation of this chapter Works with existing Cal gov code The requirements of this chapter shall be administered and interpreted consistent with the requirements of the Political Reform Act of 1974, as amended (State Government Code Section 81000 et seq.), and its implanting regulations, except where the provisions of this article impose additional requirements on any person subject to this article.

Attachment: E
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Severability Standard severability clause
It is the intent of the city council that this article be interpreted in a manner consistent with constitutional requirements. Should any provision hereof be determined to be invalid for any reason, the remainder shall be severed therefrom and shall remain in full force effect.

Definitions Defines key terms
Unless otherwise defined in this section, the words and phrases used in this article shall have the same meaning as defined in the Political Reform Act of 1974, Title 9 of the Government Code of the state, as the Act now exists or may hereafter be amended, including definitions set forth in regulations adopted by the Fair Political Practices Commission.
“Agency” means an agency as defined in Section 82003 except that it does not include the courts or any agency in the judicial branch of government, the Legislature, the Board of Equalization, or constitutional officers. However, this section applies to any person who is a member of an exempted agency but is acting as a voting member of another agency.
“Agent” means a person who acts on behalf or at the behest of any other person or accepts a contribution on behalf of a candidate. If an individual acting as an agent is also acting as an employee or member of a law, architectural, engineering or consulting firm, or a similar entity or corporation, both the entity or corporation and the individual are “agents.”
“At the behest” means made under the control or at the direction of, in cooperation, consultation, coordination, or concert with, at the request or suggestion of, or with the express prior consent of.
"Candidate" applies to persons seeking an elective city office. “City” means city of Stanton
“Contribution” is defined in a manner identical with the definition found in Government Code Section 82015, contained within the Political Reform Act, and any related provisions in the California Code of Regulations. "Controlled committee" means a committee which is controlled directly or indirectly by a candidate or which acts jointly with a candidate or controlled committee in connection with the making of expenditures. A candidate controls a committee if he or she, his or her agent, or any other committee he or she controls, has a significant influence on the actions or decisions of the committee. “Election” means any city general, run-off, special, initiative, referendum or recall election.
“Individual” means a sole human being.
“License, permit, or other entitlement for use” means all business, professional, trade, and land use licenses and permits and all other entitlements for use, including all entitlements for land use, all contracts, and all franchises. “Officer” means any elected or appointed officer of an agency, any alternate to an elected or appointed officer of an agency, and any candidate for elective office in an agency.
“Participant” means any person who is not a party but who actively supports or opposes a particular decision in a proceeding involving a license, permit, or other entitlement for use and who has a financial interest in the decision, as described in Article 1 (commencing with Section 87100) of Chapter 7. A person actively supports or opposes a particular decision in a proceeding if that person lobbies in person the officers or employees of the agency, testifies in person before the agency, or otherwise acts to influence officers of the agency. “Party” means any person who files an application for, or is the subject of, a proceeding involving a license, permit, or other entitlement for use. “Person” means an individual, proprietorship, firm, partnership, joint venture, syndicate, business trust, company, corporation, limited liability company, association, committee (including both controlled and independent committees), labor union, and any other organization or group of persons acting in concert. “Political action committee” means receives contributions to use for political purposes, such as making contributions or independent expenditures to support or oppose candidates and ballot measures, or making contributions to political parties and other state and local campaign committees.
“Political party committee” means the state central committee or county central committee of an organization that meets the requirements for recognition as a political party pursuant to Section 5100 or 5151 of the Elections Code. “Political Reform Act” means the California Political Reform Act of 1974, as amended, found at Government Code Section 81000, et seq., and includes regulations adopted by the Fair Political Practices Commission.

Campaign Contribution Limits $1,000 limit on individuals and PACs, adjusted for inflation.

A. No person other than the candidate is permitted to make, and no campaign treasurer may solicit or accept, any contribution which will cause the total amount contributed by such person with respect to a single election in support of or opposition to such candidate, including contributions to all committees supporting or opposing such candidate, to exceed one thousand dollars ($1,000.00).

B. The terms of this section are applicable to any contributions made to a candidate or committee hereunder, whether used by such candidate or committee to finance a current campaign, to pay deficits incurred in prior campaigns, or otherwise.

C. The contribution limits set forth in this section shall be adjusted every oddnumbered year, starting in 2027. The City Clerk shall adjust the contribution limits to reflect any changes in the Consumer Price Index for the Orange County area for the two-year period ending on December 31st of the previous year. Adjustments shall be rounded to the nearest $10.00. The City Clerk shall publish a public notice of any adjustments by March 1st of each odd-numbered year, or as soon after as practicable, following the Bureau of Labor Statistics’ release of the applicable Consumer Price Index data. The adjustments shall go into effect as soon as the public notice is published but shall apply only to elections held in subsequent years. The adjustments shall not be construed to raise the contribution limits applicable to past elections or to special elections held in the same year that the limits are adjusted.

D. No candidate or controlled committee shall solicit or retain a contribution from any person when such contribution shall cause the contributor to be in violation of this article herein.

E. A contribution shall not be considered to be received if it is not negotiated, deposited, or utilized and, in addition, is returned to the donor within fourteen days of receipt.

Aggregation of Contributions Prevents aggregating contributions to get around contribution limits
A. Contributions from different persons, but which are financed, maintained, or controlled by the same person, shall be aggregated for the purposes of the contribution limits of [RELEVANT SUBSECTIONS]. All contributions made by a person whose contribution activity is financed, maintained, or controlled by an individual, shall be deemed to be made by the same person.

B. A contribution drawn from a checking account or credit card account held by an individual doing business as a sole proprietorship is considered a contribution from that individual for purposes of this section. A nonmonetary contribution in the form of goods and services donated by an individual doing business as a sole proprietorship is considered a contribution from that individual for purposes of this section.

C. All contributions made by a political action committee and the committee’s officer(s) or sponsor(s) shall be treated as having been made by one person.

D. Two or more entities shall be treated as one person when any of the following circumstances apply:
(1) the entities share the majority of members of their governing boards, (2) the entities share two or more officers,
(3) the entities are owned or controlled by the same majority shareholder or shareholders,
(4) the entities are in a parent-subsidiary relationship, or (5) one entity finances, maintains, or controls the other entity’s contributions or expenditures.

E. Contributions made by entities that are majority-owned by any person shall be aggregative with the contributions of the majority owner and all other entities majority-owned by that person, unless those entities act independently in their decision to make contributions.

F. The contributions of any entity whose contributions are directed and controlled by any person shall be aggregated with contributions made by that person and any other entity whose contributions are directed and controlled by that same person.

G. If two or more entities make contributions that are directed and controlled by a majority of the same persons, the contributions of those entities shall be aggregated.

H. Any individual and any general or limited partnership in which the person has a ten percent or more interest, or an individual and any corporation in which the individual owns a fifty percent or more interest, shall each be treated as one person.

I. No committee which supports or opposes a candidate shall have as officers individuals who serve as officers on any other committee which supports or opposes the same candidate. No such committee shall act in concert with, or solicit or make contributions on behalf of, any other committee. This subdivision shall not apply to treasurers of committees if these treasurers do not participate in or control in any way a decision on which a candidate or candidates receive contributions.

Restrictions on Transfers Prevents candidates from getting around contribution limits with multiple campaign committees or by funneling money between candidates
A. No funds may be transferred into any candidate’s campaign committee from any other campaign committee controlled by the candidate.

B. No candidate and no controlled committee of any candidate shall make any contribution to any other candidate or any committee supporting or opposing any other candidate for elective city office, nor to any committee supporting or opposing a recall of an elective city officer. This restriction shall not apply to contributions from the personal funds of a candidate.

C. Should two or more candidates form a slate, each candidate shall pay only his/her proportionate share of the total cost of slate activities that are attributable to each such candidate.

Prohibition on Contributions by City Contractors and Developers Prohibition on contributions by city contractors and developers while a decision is pending and for 12 months after, plus recusal requirements for elected officials who received such contributions (mirrors SB 1439) A. While a proceeding involving a license, permit, or other entitlement for use is pending, and for 12 months following the date a final decision is rendered in the proceeding, an officer of an agency shall not accept, solicit, or direct a contribution from any party or a party’s agent, or from any participant or a participant’s agent if the officer knows or has reason to know that the participant has a financial interest, as that term is used in California Government Code Article 1 (commencing with Section 87100) of Chapter 7.

This prohibition shall apply regardless of whether the officer accepts, solicits, or directs the contribution on the officer’s own behalf, or on behalf of any other officer, or on behalf of any candidate for office or on behalf of any committee.

B. Prior to rendering any decision in a proceeding involving a license, permit, or other entitlement for use pending before an agency, each officer of the agency who received a contribution within the preceding 12 months from a party or from any participant shall disclose that fact on the record of the proceeding. An officer of an agency shall not make, participate in making, or in any way attempt to use the officer’s official position to influence the decision in a proceeding involving a license, permit, or other entitlement for use pending before the agency if the officer has willfully or knowingly received a contribution within the preceding 12 months from a party or a party’s agent, or from any participant or a participant’s agent if the officer knows or has reason to know that the participant has a financial interest in the decision, as that term is described with respect to public officials in California Government Code Article 1 (commencing with Section 87100) of Chapter 7.

C. (1) If an officer receives a contribution which would otherwise require disqualification under this section, and returns the contribution within 30 days from the time the officer knows, or should have known, about the contribution and the proceeding involving a license, permit, or other entitlement for use, the officer shall be permitted to participate in the proceeding.
(2) (i.) If an officer accepts, solicits, or directs a contribution during the 12 months after the date a final decision is rendered in the proceeding in violation of subdivision (A), the officer may cure the violation by returning the contribution, within 14 days of accepting, soliciting, or directing the contribution, whichever comes latest.
(ii.) An officer may cure a violation as specified in subparagraph (A) only if the officer did not knowingly and willfully accept, solicit, or direct the prohibited contribution.
(iii.) An officer’s controlled committee, or the officer if no controlled committee exists, shall maintain records of curing any violation pursuant to this paragraph.

D. (1) A party to a proceeding before an agency involving a license, permit, or other entitlement for use shall disclose on the record of the proceeding any contribution made within the preceding 12 months by the party or the party’s agent.
(2) A party, or agent to a party, to a proceeding involving a license, permit, or other entitlement for use pending before any agency or a participant, or agent to a participant, in the proceeding shall not make a contribution to any officer of that agency during the proceeding and for 12 months following the date a final decision is rendered by the agency in the proceeding.
(3) When a closed corporation is a party to, or a participant in, a proceeding involving a license, permit, or other entitlement for use pending before an agency, the majority shareholder is subject to the disclosure and prohibition requirements specified in this section.

E. This section shall not be construed to imply that any contribution subject to being reported under this title shall not be so reported.

Money, goods, and services received treated as contributions Goods and services count as contributions
A. Any funds, property, goods or services (other than voluntary, noncompensated personal or professional services) received by a candidate which are used, or intended by the donor or by the recipient to be used, for expenses (including legal expenses) relating to holding or running for public office, shall be considered campaign contributions and shall be subject to the contribution limitations of this chapter.

B. This section shall not apply to government funds received by an elective city officer. This section also shall not apply to reimbursement for reasonable travel expenses related to holding public office.

Prohibition on multiple campaign committees One committee per candidate A. A candidate shall have no more than one campaign committee which shall have only one bank account from which all qualified campaign and office holder expenses related to elective city offices shall be made.

B. This section shall not prevent a candidate from establishing another campaign committee solely for the purpose of running for a state, federal, local or other elective city office. This section also shall not prevent an elective city officer from establishing another campaign committee solely for the purpose of opposing his or her own recall.

Contributions in Excess of the Limit What to do with prohibited contributions A. If a committee treasurer is offered a contribution which would be in excess of the limitations set forth in this section, the treasurer must refuse the contribution.

B. If, however, a contribution which is in violation of this section is deposited into the campaign bank account, the treasurer shall report in writing to the city clerk within five days of the receipt of the contribution the facts surrounding such payment or contribution. Any such payment or contribution so deposited must be returned.

C. If it is not possible to return to the contributor, then it must be paid within 30 calendar days of receipt to the city’s general fund if the amount is less than $100.00 and to the state if the amount is $100.00 or more.

Anonymous Contributions $99 limit on anonymous contributions A. Anonymous Contributions. No candidate or city committee shall accept an anonymous contribution of $100.00 or more. An anonymous contribution of $100.00 or more shall not be kept by the intended recipient, but the entire amount shall be paid within 10 days to the Secretary of State for deposit in the state general fund (Government Code Section 84304).

Fundraising Window Fundraising window of 11 months prior to the relevant election, and a prohibition on contributions after the election that exceed any outstanding debts of the campaign
A. It is unlawful for any candidate or controlled committee seeking elective City office to solicit or accept contributions sooner than eleven (11) months preceding a single election contest.

B. It is unlawful for any candidate or controlled committee seeking elective City Office to solicit or accept, after the date of an election, a contribution that exceeds the net debts outstanding from the election.

C. It is unlawful for any candidate or controlled committee to solicit or accept any post-election contribution after 90 days from the date of the previous election.

D. As used in this subsection, the term “net debts outstanding” has the same meaning as that set forth in title 2, section 18531.61 of the California Code of Regulations.

E. Contributions received after the date of an election shall reduce the total amount of net debts outstanding.

F. The restrictions set forth in this section do not apply to: contributions made by a candidate to their controlled committee; or,
G. The restrictions on accepting contributions imposed by subsection (a) do not apply to contributions for recall elections or special elections.

Notification of Independent Expenditures Any person/entity who makes IEs must notify the city clerk
In addition to the reporting required by the Political Reform Act of 1974, as amended, and its implementing regulations, for independent expenditures, a city committee, entity (corporation, firm, business, or proprietorship), or individual that makes independent expenditures of $1,000 or more in a calendar year to support or oppose a candidate for city elective office or city ballot measure, shall notify the city clerk of such expenditure(s). Notification shall be by either electronic mail, facsimile, telegram, guaranteed overnight mail through the United States Postal Service, private delivery service or personal delivery within one business day.

Duplication of a Candidate’s Campaign Materials Prohibition on duplicating campaign materials to get around contribution limits
A. Any committee that makes a payment for distributing or disseminating an advertisement that duplicates, reproduces, or republishes a candidate’s campaign materials, in whole or in part, has made a contribution to the candidate for purposes of the contribution limits and source prohibitions set forth in this Article.

B. The “making” of a contribution to a candidate under subsection (a) does not mean that the candidate has “accepted” or “received” a contribution for purposes of contribution limits or source prohibitions. Accordingly, nothing in this section imposes any liability on a candidate whose campaign materials were duplicated, reproduced, or republished.

C. This section applies to a committee’s advertisement that uses materials created, prepared, or obtained by the candidate or the candidate’s controlled committee for campaign purposes, including, but not limited to, mailers; flyers; pamphlets; door hangers; walking cards; posters; yard signs; billboards; banners and large signs; business cards; campaign buttons; bumper stickers; newspaper, magazine, television, radio, and Internet advertisements; photographs; audio recordings; and videos, regardless of whether such materials were accessible to members of the public on the Internet or through other means not requiring coordination with the candidate or the candidate’s controlled committee.

D. This section does not apply to:
(1) any written words, phrases, or sentences contained in a candidate’s campaign materials;
(2) any statements made by a candidate while delivering a speech or speaking at a debate, forum, or similar public event and contained in an advertisement that does not use an audio or video recording made by the candidate or the candidate’s controlled committee; (3) the duplication of three or fewer photographs of the candidate; (4) an advertisement that clearly advocates the defeat of the candidate; (5) member communications; or,
(6) instances in which a payment was “made at the behest” of a candidate, as that term is defined in title 2, section 18225.7 of the California Code of Regulations. Such a payment is a contribution regardless of whether any campaign materials were duplicated, reproduced, or republished.

E. Nothing in this section imposes on any candidate or committee any filing obligations in addition to those set forth in California Government Code sections 81000 et seq. and title 2 of the California Code of Regulations.

Campaign Statements Additional pre-election filing requirements A. Each candidate and committee shall file campaign statements when and in the manner specified in the Political Reform Act of 1974, as amended.

B. Additional City Requirements.

1. Pre-Election Filing. Candidates and city committees shall file an additional preelection campaign statement with the city clerk no later than 3:00 p.m. on the Thursday immediately preceding the election. This statement shall have a closing date of the Wednesday preceding the Thursday filing date. a. The statements must be completed on campaign statement forms required to be filed by state law and in addition include:
i. A statement of estimated additional expenditures which the candidate or committee chairperson reasonably expects to expend on or before the election date.

An estimate which is unintentionally at variance with the amounts actually expended shall not constitute a violation of this article. (Ord. 420 § 1, 2010; Ord. 341 §§ 10, 11, 2006; Ord. 61 § 1, 1988; 1987 Code § 2.26.060) Retention of Records Records retention requirement
The candidate, committee, or authorized agent thereof shall retain all campaign records for a period of three years after the election.

2.24.130 Enforcement. Procedures for enforcement
A. Role of city attorney. The city attorney shall not investigate or prosecute any alleged violations of this article, but shall defend the constitutionality and legality of this article in any civil proceedings in which the city or the city council is a party.

B. Role of special counsel. Review of complaints of violation of this article and criminal prosecution thereof shall be commenced only by special counsel who shall be the district attorney, the Attorney General, or such other qualified and independent special counsel or combination of the foregoing as may be appointed by the city attorney. All special counsel shall have authority to prosecute any and all municipal code violations of this article. However, special counsel other than the Attorney General or district attorney shall not have authority to prosecute matters exclusively within the powers of the Attorney General or district attorney as provided under Government Code Section 91001. Special counsel shall also commence and prosecute civil litigation to compel compliance with this article or to enjoin conduct in violation of this article, and shall commence administrative actions pursuant to NUMBER OF MUNICIPAL CODE SECTION.

C. Appointment of special counsel. The appointment of special counsel shall be done in writing, and copies of the written appointment shall be provided to the city manager, city clerk and members of the city council. At least 90 days prior to a city election, a special counsel may be appointed by the city attorney for that election.

Should the appointment of additional special counsel become necessary or appropriate, the city attorney may appoint such additional special counsel as may be required. No enforcement or prosecution or action of special counsel shall be subject to the review or control of the city council or the city manager. The cost of special council may be paid from the city general fund.

D. Initiation of investigations. Any person residing in the city who believes that a violation of this article has occurred may file a written complaint requesting investigation of such violation by the special counsel. If the special counsel determines that there is reason to believe a violation of this article has occurred, it shall conduct an investigation and may commence such administrative, civil or criminal legal action as it deems necessary for the enforcement of this article.

E. Investigative powers of special counsel. The special counsel shall have such investigative powers as are necessary for the performance of duties described in this article and may demand and be furnished records of campaign contributions and expenditures of any person or city committee at any time. In the event that production of such reports is refused, the special counsel may commence civil litigation to compel such production.

F. Immunity of special counsel. The special counsel shall be immune from liability for its enforcement of this article.

2.24.140 Enforcement – Criminal or civil liability.

A. Criminal and civil liability. Any knowing or willful violation of any provision of this article may be prosecuted, either as an infraction or as a misdemeanor, at the discretion of the prosecutor under the provisions of MUNICIPAL CODE SECTION FOR GENERAL VIOLATIONS. In addition to any other penalty provided by law, any willful or knowing failure to report truthfully any contribution or expenditure shall be punishable by a fine of not less than $1,000.00. The treasurer of any city committee shall be both criminally and civilly liable for any violation of this article by the city committee. In addition, the candidate shall be both criminally and civilly liable for any violation by a committee controlled by the candidate.

B. Forfeiture of contributions. In any legal action brought under this article for injunctive relief or civil liability, where it is determined that a city committee has accepted a contribution or contributions in excess of the applicable limit set forth herein, the full amount of said contribution(s) shall be forfeited to the city general fund. If funds are not available in the city committee’s account for this purpose, the candidate or treasurer shall be personally liable to pay said amount to the city general fund.

2.24.145 Enforcement – Administrative.

A. Additional to other remedies. This section provides for administrative remedies for violations of this article, which are in addition to all other legal remedies, criminal or civil, which may be pursued by the city to address any violation of this article.

B. Notice and order. Whenever the special counsel appointed pursuant to RELEVANT MUNICIPAL CODE SECTION determines that there is probable cause that a violation of one or more provisions of this article has occurred or exists, a written notice and order may be issued to the alleged violator.

C. Contents of notice and order. The notice and order shall refer to the code section violated and describe how the sections are or have been violated, and the dates of all violations. The notice and order shall also set a date, time and place for a hearing, which shall be held no fewer than 10 days following the service of the notice.

D. Service of notice and order. The notice and order shall be served upon the alleged violator by personal service, or certified mail with postage prepaid and return receipt requested.

E. Designation of hearing officer. The city attorney shall designate a hearing officer, who shall not be a city employee. The compensation of the hearing officer, if any, shall be paid by the city. The employment, evaluation, and compensation, if any, of the hearing officer shall not be directly or indirectly conditioned upon the outcome of the hearing.

F. Violation established by preponderance of evidence. At the hearing, the hearing officer shall consider whether a preponderance of evidence demonstrates the existence of the violation. The alleged violator or any other interested persons may present testimony or evidence concerning the existence of the violations, and the alleged violator may cross examine witnesses.

G. Conduct of hearing. Hearings shall be conducted in an expeditious manner to enable all interested parties to present relevant evidence. Formal rules of evidence shall not be required. Time limits for presenting evidence, order of testimony, handling of exhibits, and similar matters shall be at the discretion of the hearing officer. The hearing officer may continue the hearing to obtain additional evidence, or for other good cause.

H. Failure to attend hearing. Failure of the alleged violator to attend the hearing shall constitute an admission of the violation by the alleged violator and a failure to exhaust administrative remedies that may bar judicial review.

I. Decision by hearing officer. After considering all the testimony and evidence submitted at the hearing, the hearing officer shall issue a written order, including findings regarding the existence of each violation, the reasons for the decision, and notice of the right to judicial review. The written decision shall be issued within 30 days of the hearing, and served on the alleged violator within 10 days of its issuance. The order shall be final upon service on the alleged violator, subject only to judicial review as allowed by law.

J. Imposition of penalty. If the hearing officer finds that the alleged violator committed the violation by a preponderance of evidence, the hearing officer shall impose a penalty and a date the penalty and any administrative costs shall be due and payable by the violator.

K. Amount of penalty. An administrative penalty for a violation of this article shall be set at a maximum of $5,000 per violation, and a minimum of $1,00.00 per violation, and the maximum total penalty shall not exceed $50,000. In determining the amount of penalty to be imposed, the hearing officer shall consider the following factors: duration of the violation, frequency of recurrence of the violation, seriousness of the violation, history of violations, good faith effort of the violator to correct the violation, economic impact of the violation on the violator, impact of the violation on the community and the city, and any other relevant factors that justice may require.

L. Failure to pay penalty. Upon the failure of any person to pay the assessed administrative penalty by the date specified in the hearing officer’s decision, the unpaid amount shall constitute a personal obligation of the violator. The city attorney shall collect the obligation by use of all appropriate legal means.

M. Judicial review. Any person subject to a decision of the hearing officer may obtain judicial review of the decision in the superior court pursuant to the provisions of California Government Code Section 53069.4, as amended.

Civil actions by residents.

A. Any resident of the city may bring a civil action regarding the provisions of this chapter, as follows:

1.To enjoin an actual or threatened violation;

2.To compel compliance by a private person;

3.To obtain declaratory relief.

B. Any action brought under this Section shall be commenced within two years of the time the alleged violation occurred.

Time for Commencement of Actions
Any action alleging violation of this article must be commenced within two years of the time the alleged violation occurred.

Use of Funds Deposited With City
Any funds paid to or deposited with the city by operation of, or pursuant to, the provisions of this article shall be placed in the city’s general fund and designated for use in defraying the costs of municipal elections including the administration or enforcement of this article.

City Council Initiated
Item 12D
“DISCUSSION REGARDING RENT CONTROL

WITHIN MOBILE HOME PARKS WITHIN THE
CITY”
(This item does not contain a staff report)
Item: 12D
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