Ordinance No. 978414
ORDINANCE NO. 978
ON ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CYPRESS, CALIFORNIA, ADDING ARTICLE X TO
CHAPTER 2 OF THE CYPRESS MUNICIPAL CODE,
PROVIDING FOR THE HEIGHTENED REPORTING OF
CONTRIBUTIONS AND EXPENDITURES FOR ELECTIONS
IN THE CITY OF CYPRESS
WHEREAS, Government Code § 81013 authorizes the City of Cypress to impose
"additional [campaign finance reporting] requirements on any person if the requirements do
not prevent the person from complying with" state law; and
WHEREAS, Government Code § 81009.5 authorizes the City of Cypress to impose
campaign finance reporting requirements beyond those specified in the Political Reform Act of
1974 provided such requirements "apply only to candidates seeking election in [the City's]
jurisdiction, their controlled committees or committees formed or existing primarily to support
or oppose their candidacies, and to committees formed or existing primarily to support or oppose
a candidate or local ballot measure which is being voted on only in that jurisdiction, and to city
... general purpose committees active only in that city; and
WHEREAS, the City Council of the City of Cypress desires to enact additional City
requirements relating to the reporting of contributions and expenditures for campaigns for City
offices or measures in the City of Cypress.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CYPRESS,
CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Article X of Chapter 2 of the Cypress Municipal Code is hereby added,
to read as follows:
Article X - Campaign Finance Reporting.
2 -95.1. Purpose. The purpose of this article is to ensure an environment in the
City of Cypress wherein the public can be informed about all contributions made
to or expenditures made by all candidates for elective office or persons supporting
or opposing measures affecting the municipal affairs of the City. To achieve this
purpose, this article imposes heightened reporting requirements for campaign
contributions or expenditures beyond those required by state law.
2 -95.2. Relationship to Political Reform Act. This article is intended to be a
supplement to and in no way be in conflict with the Political Reform Act of 1974.
Unless otherwise defined in this article, words and phrases shall have the same
meaning here as that given to them by the Political Reform Act.
2 -95.3. Definitions. Whenever the following words are used in this article, they
shall be construed as follows:
A. "Candidate" means any individual who is listed on the ballot, or
who has begun to circulate nominating petitions or authorized
others to circulate petitions on his or her behalf, for nomination for
or election to a city office, or who receives a contribution or
makes an expenditure or gives his or her consent for any other
person to receive a contribution or make an expenditure with a
view to bringing about his or her nomination or election to a city
office, whether or not the specific intent to seek nomination or
election to the city office is known at the time the contribution is
received or the expenditure is made, and whether or not he or she
has announced his or her candidacy or filed a declaration of
candidacy at that time. "Candidate" also includes any person
holding a city office.
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B. "City office" means an elected office of the city, including the city
council, or any other office which shall become elective in the
future.
C. "City measure" means a measure or proposition, initiated pursuant
to Elections Code §§ 9200 et seq. , 9235 et seq., or 9255 et seq. ,
which is intended to be or is being voted on in a city election.
D. "Committee" means any person or combination of persons who,
for political purposes relating to a city election, directly or
indirectly receive contributions in any forty eight (48) month
period, or who directly or indirectly make expenditures in any
forty eight (48) month period. "Committee" includes controlled
committees.
E. "Contribution" means a (1) payment, a forgiveness of a loan, a
payment of a loan or pledge of security for a loan or an
enforceable promise to make a payment, by anyone other than a
candidate, his or her spouse, or the candidate's parents except to
the extent that full and adequate consideration is received, unless
it is clear from the surrounding circumstances that it is not made
for political purposes; (2) forgiveness of a debt or other obligation
to pay for goods or services rendered, or reduction of the amount
of a debt or other obligation to pay for goods or services rendered
resulting from a settlement of a claim disputed by the candidate or
committee, unless it is clear from the circumstances that the
amount of the reduction was reasonably based on a good faith
dispute and not for political purposes; and (3) any expenditure
made at the behest of a candidate or controlled committee, unless
full and adequate consideration is received by the maker of the
expenditure.
1. The term "contribution" shall also include the purchase of
tickets for events such as dinners, luncheons, rallies and
similar fund - raising events; a candidate's own money or
property used on behalf of his or her candidacy; the
granting of discounts or rebates not extended to the public
generally; the granting of discounts or rebates by television
or radio stations or newspapers which are not extended on
an equal basis to all candidates for the same office; and the
payment of compensation by any person for the rendition
of personal services or expenses of any other person, or the
rendition of personal services or the payment of expenses
by any person, if such services are rendered or expenses
incurred on behalf of a candidate or committee without
payment of full and adequate consideration by the candidate
or committee.
2. The term "contribution" shall also include:
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a. The cost of any meeting or fund - raising
event held in a public or private facilities
in honor or on behalf of a candidate or
committee having a value of $100.00 or
greater; and
b. Volunteer personal services or payments
made by a person for his or her own travel
expenses even if such payments are made
voluntarily without any understanding or
agreement that they shall be, directly or
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indirectly, repaid to him or her having a
value of $100.00 or greater.
3. A contribution is made on the date the payment, forgive-
ness of debt or loan, expense or donation is actually
received or the date when an irrevocable pledge to make a
payment, forgive a debt or loan, or incur and expense or
make a donation is actually made, whichever is earlier.
F. "Controlled committee" means a committee which is controlled
directly or indirectly by a candidate, or which acts jointly with a
candidate in connection with his or her campaign. 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.
G. "Election" means any primary, general or special election held in
the City of Cypress, and includes any recall election.
H. "Expenditure" means a payment, a forgiveness of a loan, pledge
of security for a loan, or a payment of a loan by anyone other than
a candidate or his or her spouse, or an enforceable promise to
make any of the above, unless it is clear from the surrounding
circumstances that it is not made for political purposes.
An expenditure is made on the date the payment is made or on the
date consideration, if any, is received, whichever is earlier.
"Independent expenditure" means any expenditure or donation of
anything of value, including the gratuitous rendition of services
having a value of $100.00 or greater, made by any person in
connection with a communication which expressly supports or
opposes the nomination, election, defeat, or recall of a candidate(s)
for city office, city measure(s), or otherwise unambiguously urges
a particular result in a City election. An independent expenditure
is made on the date the payment is made, services are rendered,
or consideration, if any, is received, whichever is earlier.
J. "Payment" means a payment, reimbursement, distribution,
transfer, loan, advance, deposit, gift or other rendering of money,
property services or anything else of value, whether tangible or
intangible.
K. "Person" means an individual, proprietorship, firm, partnership,
joint venture, syndicate, business trust, company, corporation,
association, committee, labor union, and any other organized
group of persons acting in concert.
L. "Political Reform Act" shall mean the Political Reform Act of
1974, as amended, Government Code §§ 81000 et seq., as it may
be amended from time to time.
2 -95.4. Reports.
A. Any candidate, person, or committee meeting the criteria of
subsection D below, who receives contributions or who makes
expenditures, independent expenditures, or payments in any
calendar year, shall, in addition to and as a supplement to the
requirements of the Political Reform Act regarding the filing of
campaign statements, file one original and one copy of the
campaign statement in the manner required herein detailing all
contributions, expenditures, independent expenditures, and
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payments, received and /or made toward a candidate for City office
or for or against a City measure.
B. The report required hereunder shall be on the form required by the
Political Reform Act, and shall contain all of the following:
1. The name, street address, and telephone number of the
person or committee making the contribution, expenditure,
independent expenditures, or payment and of the
committee's treasurer.
2. If the report is related to a candidate, the full name of the
candidate and the City office for which the candidate seeks
nomination or election.
3. If the report is related to a City measure, the full name by
which the City measure is designated or proposed to be
designated.
4. The total amount of contributions received related to the
candidate for City office or City measure during the period
covered by the report.
5. The total amount of expenditures related to the candidate
for City office or City measure during the period covered
by the report.
6. The total amount of independent expenditures related to the
candidate for City office or City measure during the period
covered by the report.
7. The total amount of payments made related to the candidate
for City office or City measure during the period covered
by the report.
8. For each person from whom a contribution has been
received, and /or from each person to whom an expenditure,
independent expenditure, or payment has been made on
behalf of a candidate for City office or City measure during
the period covered by the report:
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a. His or her full name.
b. His or her street address.
c. If the person is a committee, the name of
the committee, the number assigned to the
committee by the Secretary of State, or if no
number has been assigned, the full name and
street address of the treasurer of the
committee.
d. The date of the contribution, expenditure,
independent expenditure, and /or payment.
e. The amount of the contribution, expenditure,
independent expenditure, and /or payment.
f. A brief description of the consideration for
which each such expenditure or independent
expenditure was made and the value of the
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g.
consideration if less than the total amount of
the same.
The cumulative amount of expenditures,
independent expenditures, and /or payments
to such person over the period covered by
the report.
9. A list of all the filing officers with whom the committee
filed its most recent campaign statement.
C. The report required hereunder shall be filed semiannually.
On January 31 a report shall be filed for the period covering July 1
through December 31 of the preceding year. On July 31, a report
shall be filed for the period covering January 1 through June 30 of
that year. A supplemental report shall also be filed for any
candidate for city office or for any city measure after the closing
date of the prior semi -annual report period in which the contri-
bution(s), expenditure(s), independent expenditure(s) or payment(s)
exceed(s) five hundred dollars ($500.00). Such supplemental
report shall be filed within twenty -four (24) hours of the receipt
of a contribution(s) and /or the making of the expenditure(s),
independent expenditure(s), or payment(s).
D. The reporting requirement contained herein shall apply, as provi-
ded in Government Code § 81009.5, only to candidates seeking
election for city office, their controlled committees, committees
formed or existing primarily to support or oppose the candidacy of
a candidate for city office, to committees formed or existing
primarily to support or oppose the qualification of, or passage of,
a local ballot measure which is being voted on only in the city, and
to city general purpose committees active only within the city.
2 -95.5. Penalty. Violation of this article shall be punished as an infraction, and
subject to the penalty(ies) as specified in Section 1 -7(c) of this Code.
2 -95.6. Injunctive Relief. The City Attorney on behalf of the city, or any
resident of the city, may sue for injunctive relief to enjoin any violation of or to
compel compliance with any provision of this article.
2 -95.7. Cost of Litigation. In any action authorized by this article, the court
shall award to a prevailing party his or her costs of litigation, including
reasonable attorneys' fees.
2 -95.8. Limitation Period. Any civil action for violation of any provision of
this article shall be commenced within four years after the date on which the
violation occurred, or thereafter shall be barred.
2 -95.9. Applicability of Other Laws. Nothing in this article shall exempt any
person from the applicable provisions of any other laws of this State or the city.
2- 95.10. Interpretation of Article. This article shall be liberally construed to
accomplish its purposes.
SECTION 2. If any section, subsection, subdivision, clause, phrase or portion of
Article X of Chapter 2 of the Code of the City of Cypress is for any reason held to be invalid
or unconstitutional by decision of a court of competent jurisdiction, such decision shall not affect
the validity of the remaining portions of this Ordinance. The City Council hereby declares that
it would have adopted this Ordinance and each and every part thereof irrespective of the fact that
any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions
thereof, may be declared invalid or unconstitutional.
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SECTION 3. This Ordinance shall operate prospectively only, and shall be of no force
or effect prior to the date it becomes enforceable according to law.
SECTION 4. The City Clerk shall certify to the passage and adoption of this Ordinance
and shall make a minute of the passage and adoption thereof in the records of and the proceed-
ings of the City Council at which the same is passed and adopted. This ordinance shall be in
full force and effect thirty (30) days after its final passage and adoption, and within fifteen (15)
days after its final passage and adoption, the City Clerk shall cause the same to be posted in the
established three (3) public places within the City of Cypress.
FIRST READ at a regular meeting of the City Council of the City of Cypress held on
the 10th day of August , 1998, and finally adopted and ordered posted at a regular
meeting held on the 24th day of August , 1998.
ATTEST: 11
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CITY CLERK OF THE CITY OF CYPRESS
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS
(Mayor Pro tem)
MAYOR, CITY OF CYPRESS
I, LILLIAN HAINA, City Clerk of the City of Cypress, DO HEREBY CERTIFY that
the foregoing Ordinance was duly adopted at a regular meeting of the said City Council held on
the 24th day of August , 1998, by the following roll call vote:
AYES: 3 COUNCIL MEMBERS: Bowman, Carroll and Keenan
NOES: 1 COUNCIL MEMBERS: Piercy
ABSENT: 1 COUNCIL MEMBERS: Jones
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CITY CLERK OF THE CITY OF CYPRESS
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