Chapter 1-40
CAMPAIGN CONTRIBUTION LIMITS

Sections:

1-40.010    Purpose and intent. Revised 9/20

1-40.020    Relation to the Political Reform Act. Revised 9/20

1-40.030    Definitions. Revised 9/20

1-40.040    Single-election limit. Revised 9/20

1-40.010 Purpose and intent.

The purpose and intent of this chapter is to prevent corruption and the appearance of corruption in City Council candidates’ electoral campaigns that can arise where unlimited campaign contribution amounts may be made to candidates by a single source for election to the City Council, and to ensure an environment in the city of Laguna Hills wherein all City Council candidates are placed on an equal plane relative to the amount of campaign contributions received by them from a single source, and further to ensure that the amount contributed by any person does not materially influence the outcome of any election. In furtherance of that goal, a reasonable campaign contribution limitation is hereby enacted that is similar to those enacted by other communities that are similar to Laguna Hills. In those communities, such limitations have not inhibited city council candidates’ ability to conduct meaningful and effective campaigns, but they have limited the appearance and incidents of corruption that have been experienced. To achieve this purpose, this chapter imposes a maximum limitation on the amount of campaign contributions which may be received by candidates from a single source for an elective city office campaign. (Ord. 2020-1 § 1 (part))

1-40.020 Relation to the Political Reform Act.

This chapter is intended to be a supplement to and in no way conflict with the Political Reform Act of 1974. Unless otherwise defined in this chapter, words and phrases shall have the same meaning herein as that given to them by the Political Reform Act of 1974, as the same may be, from time to time, amended. (Ord. 2020-1 § 1 (part))

1-40.030 Definitions.

The following words, terms and phrases, when used in this chapter, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

“City Council candidate” means an individual who is listed on the ballot or who has qualified to have write-in votes on their behalf counted by election officials, for nomination for or election to the Laguna Hills City Council, or who receives a contribution or makes an expenditure or gives their consent for any other person to receive a contribution or make an expenditure with a view to bringing about their nomination or election to the Laguna Hills City Council, whether or not they have announced their candidacy or filed a declaration of candidacy at such time. The term “candidate” also includes any City Council member who is the subject of a recall election. An individual who becomes a candidate for the Laguna Hills City Council shall retain their status as a candidate until such time as that status is terminated pursuant to Government Code Section 84214.

“Contribution” means any payment made for political purposes for which full and adequate consideration is not made to the donor.

1.    A contribution includes:

a.    Any goods or services received by or requested by a City Council candidate or their candidate controlled committee, at no charge or at a discount from the fair market value, unless the discount is given in the regular course of business to members of the public.

b.    Cash.

c.    A loan or an extension of credit for more than thirty (30) days, other than loans from financial institutions given in the normal course of business.

2.    Payment made for political purposes is a payment made:

a.    For the purpose of influencing or attempting to influence the action of the voters for or against the nomination or election of a City Council candidate; or

b.    Received by or made at the request of a City Council candidate or their candidate controlled committee.

3.    Payments for communications to members, employees, shareholders, or families of members, employees, or shareholders of an organization for the purpose of supporting or opposing a candidate or a ballot measure are not contributions, provided those payments are not made for general public advertising such as broadcasting, billboards, and newspaper advertisements.

“Person” means any individual, proprietorship, firm, partnership, joint venture, syndicate, business trust, company, corporation, limited liability company, association, committee, political action committee, labor union, and any other organization or group of persons acting in concert. (Ord. 2020-1 § 1 (part))

1-40.040 Single-election limit.

No person shall make, and no City Council candidate or candidate controlled committee shall solicit or accept from any person, any contribution of more than one thousand dollars ($1,000.00) in any single election. The provisions of this section shall not apply to a candidate’s contribution of their personal funds, community property funds or domestic partnership funds to their own candidate controlled committee, but shall apply to separate property contributions from the candidate’s spouse or domestic partner. (Ord. 2020-1 § 1 (part))