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HomeMy WebLinkAbout36- Council Office CITY OF SAN BB ,ARDINO - REQUEST FOR JUNCIL ACTION From: Councilman F.J. Curlin, M.D. Subject: San Jose Plan of Ethics and Campaign Provisions Dept: Council Office Date: August 22, 1994 Synopsis of Previous Council Action: tD.'41N.. UFFiCrj 2Aw9( 4 7 Recommended Motion: To discuss and refer the San Jose Plan to Legislative Review Committee for review, analysis and recommendation. Signature Contact Person: Dr. Curlin Phone: 5222 Supporting Data Attached: Yes Ward: Two FUNDING REQUIREMENTS: Amount: Source: (Acct.No.) (Acct. Description) Finance: Council Notes: AGENDA ITEM NO. 3 TABLE OF CONTENTS TITLE 12 ETHICS PROVISIONS Page CHAPTER 12.02 CAMPAIGN FINANCE REVIEW AND ETHICS BOARD 1 12.02.010 Establishment of Board 1 12.02.020 Terms of Office 2 12.02.030 Eligibility Requirements and Qualifications 2 12.02.040 Vacancies 3 12.02.050 Meetings 3 12.02.060 Quorum 4 12.02.070 Duties and Responsibilities 4 12.02.080 Investigations 4 12.02.090 Findings 5 CHAPTER 12.04 GENERAL PROVISIONS AND DEFINITIONS 5 12.04.010 Intent 5 12.04.020 Words and Phrases 6 12.04.030 Client 6 12.04.040 Contractor 7 12.04.050 Designated Employees 7 12.04.060 Local Governmental Lobbyist 7 12.04.070 Governmental Action 8 12.04.080 Payment 8 12.04.090 Person Doing Business With the City 8 12.04.100 Public Official 9 CHAPTER 12.06 MUNICIPAL ELECTION CAMPAIGN CONTRIBUTION CONTROL 9 Part 1 Campaign Contribution o 12.06.010 Intent and Purpose 9 12.06.020 Definitions 9 12.06.030 Prohibitions and Requirements Applicable to Agents 13 12.06.040 Contribution Collection and Expenditure Periods 14 12.06.050 Deposit of Personal Funds Into Campaign Bank Accounts 14 12.06.060 Contribution Limitations to City Council Candidates 15 12.06.070 Contribution Limitations to Mayoral Candidates 15 12.06.080 Exploratory Campaigns 15 12.06.090 Contribution Limitations to Independent Committees 16 12.06.100 Contributiens and Expenditures by Independent Committees 17 12.06.110 Anonymous Contributions 18 12.06.120 Contributions Through Other Persons Prohibited 18 12.06.130 Certain Contributions by Business Entities Prohibited 19 12.06.140 Excess Contributions 19 12.06.150 Construction with Political Reform Act 20 12.06.160 Transitional Provisions 20 Part 2 Officeholder, Debt Retirement. and Special Elections 22 12.06.200 Intent and Purpose 22 12.06.210 Limitation on Post-Election Contributions to Councilmembers 22 12.06.220 Limitation on Post-Election Contributions to the Mayor 22 12.06.230 Excess Contributions 23 12.06:240 Restrictions on Officeholder Contributions and Expenditures 23 12.06.250 Restrictions on Debt Retirement Contributions 24 12.06.260 Deadline for Debt Retirement 25 19 nA 97n Cnnrimi Clnn+inne n. TITLE 12 ETHICS PROVISIONS TABLE OF CONTENTS PAGE 2 CHAPTER 12.06 MUNICIPAL ELECTION CAMPAIGN CONTRIBUTION CONTROL (continued) Part 3 Campaign, Discicsure 27 12.06.300 Statements 27 12.06.310 Late Contributions 28 12.05.320 Duties of the City Clerk 29 12.06.330 Disclosure of Post-Election Payment Agreements 29 CHAPTER 12.08 PROHIBITION OF GIFTS 30 12.08.010 Gifts Prohibited 30 12.08.020 Gift Defined 30 12.08.030 Gifts Not Prohibited 31 12.08.040 Acceptance of Gifts 35 12.08.050 Reporting Gifts to Spouse and Children 35 CHAPTER 12.10 REVOLVING DOOR PROHIBITIONS 36 12.10.010 Prohibited Agency 36 12.10.020 Prohibited Assitance or Consultation 36 12.10.030 Prohibited Subsequent Compensation 37 12.10.040 Exemptions 37 12.10.050 Additional. Prohibited Agency 39 12.10.060 Board, Committee or Commission Member - Prohibited Activity. 39 CHAPTER 12.12 LOCAL GOVERNMENTAL LOBBYISTS 39 12.12.010 Registration with City Clerk 39 12.12.020 Cessation of Employment 40 ! 12.12.030 Exceptions 40 12.12.040 Noncompliance -- Order to*Show Cause 42 12.12.050 Availability of Information 42 12.12.060 Filing Under Penalty of Perjury 42 12.12.070 No Unregistered Employment or Activity 43 12.12.080 Personal Obligation of City Officials Prohibited 43 12.12.090 Deception Prohibited 43 12.12.100 Improper Influence Prohibited 43 12.12.110 False Appearances Prohibited 44 12.12.120 Prohibited Representations 44 12.12.130 Records 44 CHAPTER 12.14 CONCURRENT EMPLOYMENT OF CITY COUNCIL MEE14BERS OR CITY OR AGENCY EMPLOYEES 44 12.14.010 Discicsure of Concurrent Employment 44 APTER 12.16 ENFORCEMENT 45 4 12.16.010 Ethics Board 45 "?.16.020 Campaign Contribution Violations 45 .16.030 Violations of Other Chapters of This Title 47 .16.040 Subject to Discipline 47 ?c 050 Civil Actions 47 1_ 6.060 Additional Sanctions - Revolving Door Violations 48 41U :1vJ :�iA:Sl 1-1/8/93 .� ORDINANCE NO. 24499 AN ORDINANCE OF THE CITY OF SAN JOSE ADDING A NEW TITLE 12 ENTITLED ETHICS PROVISIONS TO THE SAN JOSE MUNICIPAL CODE, AND INCLUDING PROVISIONS FOR A CAMPAIGN REVIEW AND ETHICS BOARD TO REVIEW AND MONITOR COMPLIANCE WITH THE CAMPAIGN FINANCE ORDINANCE AND OTHER ETHICS ORDINANCES IN TITLE 12 AS WELL AS TO RENUMBER CHAPTER 2.21 OF TITLE 2 AND CHAPTER 10.36 OF TITLE 10 TO MAKE THESE ORDINANCES CHAPTERS IN TITLE 12 AND TO MAKE TECHNICAL CHANGES TO BRING THEM WITHIN THE JURISDICTION OF THE BOARD. BE IT ORDAINED BY THE COUNCIL OF THE CITY OF SAN JOSE: SECTION 1. A new Title 12 is hereby added to the Municipal Code which incorporates, and amends, Chapter 2.21 of Title 2 and Chapter 10.36 of Title 10 and is to be entitled and numbered and to read as follows: TITLE 12 ETHICS PROVISIONS Chapter 12.02 Campaign Finance Review and Ethics Board 12. 02.010 Establisbment of Board. A. A Campaign Finance and Ethics Review Board, hereinafter referred to as the 'Ethics Board' or 'Board, • is hereby created and established which shall have the powers and duties set forth in this Chapter. B. The Ethics Board shall have five members. Members shall be appointed by no less than two-thirds vote of the City Council . Members of the Board shall be selected by the same Rrocedure of -1- 959-5c/0479k `JRG:NS:c_k:sl 11/8/93 application and public interview which is utilized for the Planing Commission. C. The Board shall select one of its members to serve as Chair and one of its members to serve as Vice Chair. 12 . 02. 020 Terms of office. A. All members of the Board shall serve two four-year terms for a ma.)=um of eight years. B. To ensure continuity of its membership, the first five members appointed to the Board shall be appointed for the following terms 1. The first three appointments shall be appointed for four-year terms; 2 . The following two appointments shall be appointed for two-year terms. 12 .02.030 Eligibility Requirements and Cualificati=s. A. Each member of the Board shall be a qualified elector of the City and have some demonstrated familiarity and experience with ca=:paign laws. The Board' s membership should be representative of the community. B. No member shall be employed by the City or have any direct and su3^stantial financial interest in any business, work or official 'accion taken by the City. C. file serving on the Board, no member shall hold any other public =ice. -2- -1479k 'JRG:NS_glk:sl 11/8/93 -i C99 D. No member shall participate as a candidate in any election to pudic office for a period of two years both before and after te=ure on the Board. E. While serving on the Board, no member shall publicly endorse any candidate for City office nor engage in any political or campaign activity on behalf of any candidate for City office. 12 .02 . 040 Vacancies. A. Me=bers of the Board may be removed from the Board by two-thirds vote of the City Council for any reason or no reason. B. Appointments by the City Council to fill vacancies shall be for the unexpired term of the member whose seat is being filled. Such appointments should be made within sixty (60) days from the date of vacancy. 12 .02_050 Meetings. A. The Board shall meet no less than two times during the year of a Municipal election in order to review informational materials prepared for candidates in the Municipal election. At least one meeting shall be held before the primary election and one meeting shall be held before the general election. B. The Board shall meet at other times as set forth in the Resolution of Bylaws of the Board or as called by the Chair. Deliberations and meetings of the Board shall be open to the public. C. The Office of the City Clerk shall staff such meetings. 9595c/O479k _3 11/8/93 ... .._ -- — -- � i�1-►=_�� . 12 . 02 . 060 Quo rum. Th. ee members shall constitute a quorum, and the concurring vote of at least three members shall be required to take any action. 12 . 02 .070 Duties and Responsibilities. The Board shall have the following duties and responsibilities : A. Mon-itor compliance with all campaign and ethics ordinances in this Title. B. Review and investigate allegations of violations of this Title and make recommendations for enforcement action where appropriate. C. Make recommendations to the City Council with regard to campaign and ethics regulations and policies. 12 .02.080 Investigations. A. The Board shall have the authority to investigate complaints alleging violations of the City's Campaign Contribution Control Ordinance or Ethics Ordinances set forth in this Title, if it determines that sufficient cause exists to conduct an investigation. B. A complaint filed with the Board may be investigated only if the complaint identifies the specific alleged violation which forms the basis for the complaint and contains• sufficient facts to warrant a formal investigation. C. T-4-e Board shall establish procedures for investigations including notification to persons who file complaints as to whether or not the Board will investigate a complaint. -4- 9595c/0479k JRG:NS:glk:sl ,11/8/93 0.11 193 D. The City Attorney' s Office may provide legal advice to the Board related to non-complaint matters or general interpretations of the Say Jose City Municipal Code or relevant State or Federal law, but shall not participate in investigations or reviews of complaints. E. If the Board determines that funding for an independent investigation of a complaint or a special prosecutor is necessary, the Board shall make a request for funding to the City Council . 12 . 02.090 Findings. A. The Board, by Resolution, may issue formal findings based on substantial evidence that a provision of the Campaign Contribution Control Ordinance or Ethics Ordinance in this Title has been violated. B. No such finding shall be made unless the person alleged to have conanitted the violation is notified of the alleged violation, is provided with a summary of the evidence, and -is informed of his or her right to be present in person and represented by counsel or any other person at any meeting or proceeding of the Board which is held for the purpose of considering whether such violation e]QSts. C. The Board may recommend enforcement action in accordance with Chapter 12.16 of this Title. Chapter 12.04 General Provisions and Definitions 12.04.010 Intent. A. This Title is intended to implement Charter Section *607. It is a -5- 9595c/0479k - 11/8/93 :t93 -"' coa.-:lation of all City ordinances which directly regulate car^. ign conduct and ethics . B. This Title is intended to apply equally to the Redevelopment Agency of the City of San Jose and to any Joint Powers or other subsidiary agency of the City. C. The provisions of this Title are supplemented by City policies and adm=nistrative regulations. They are in addition to all applicable state and federal laws. D. All City officials, including candidates for City office, members of all City and Agency boards, commissions and committees, all City and Agency employees and all persons doing business with the City or Agency are expected to fully comply with all applicable proms isions of this Title as well as all other City ethics policies and regulations. 12 .04.02 0 Words and Phrases. Words and phrases used in this Title shall have the meanings and be interpreted in the same manner as words and phrases used in the Political Reform Act of 1974 as amended and the regulations issued pursuaLr thereto, unless otherwise expressly provided or unless the context otherwise requires. 12.04.03 0 Client. A. •Client" means the real party in interest for "whose benefit the sezvices of a local governmental lobbyist are actually performed. B. An individual member of an organization shall not be deemed to be a 'client" , for purposes of this Chapter, solely by reason of the fact that such member is individually represented by an employee -6- 9595c/a479k JRG:NS:glk:sl 11/8/93 n•�_4�3 or agent of the organization as a regular part of such employee' s or agent' s duties with the organization as long as such member does not pay an amount of money or other consideration in addition to the usual membership fees for such representation. 12 .04.040 Contractor. "Contractor" means any party to an agreement in which the value of the consideration exceeds One Thousand Dollars ($1,000) ; and 1. The City is a party; or 2. The Redevelopment Agency is a party; or 3. The agreement or its effectiveness is in any way dependent or conditioned upon approval by the City Council or Redevelopment Agency Board or any board or conatission, officer or employee of the City or the Agency. 12 .04.050 Designated Employees. "Designated employees" means City and Redevelopment Agency employees who are designated employees within the meaning of the Political Reform Act of 1974, as amended, and who are required by the Political Reform Act or a San Jose or Redevelopment Agency conflict of interest code to file financial interest disclosure statements. 12 .04.060 Local Governmental Lobbyist. A. "Local governmental lobbyist" means any person who is employed or who contracts for economic consideration, other than reimbursement for reasonable expenses, the value of which consideration exceeds an aggregate of One Thousand Dollars ($1,000) from all sources in any annual period, for the purpose of or whose activities include - -7- 9595c/0479k 11/8/93 ���'1 19 con-=anicating directly or through agents with any public official, officer or designated employee for the purpose of influencing any gove-nmental action of the City of San Jose or the Redevelopment Agency of the City of San Jose. B. No person is a local governmental lobbyist by reason of activities described in Section 12 . 12 . 030 . 12 . 04 .070 Governmental Action. "Governmental action" means any administrative or legislative action of the City of San Jose and the Redevelopment Agency other than an action which is ministerial in nature. 12.04.080 Payment. "Payment" means a payment, distribution, transfer, loan, advance, deposit, gift or other rendering of money, property, services or anything else of value, whether tangible or intangible. 12 . 04.090 Person Doina Business with The City. A. •Person doing business with the City• means any person whose financial interests are materially affected by governmental action as defined by Section 12 .04 . 070. It includes persons currently doing business with the City or the Redevelopment Agency, planning to do business with the City or Agency, or having done business with the City or Agency within two years. B. For purposes of this Chapter, a person's financial interests shall not be found to be materially affected by the issuance of any license or permit which does not require the exercise of discretion by City or Agency officers or employees. , r -8- 9595c/O479k uALi :la� _y1Ji:Sl 11/8/93 1.193 12 .04 .100 Public Official . •r^ablic official" means an elected or appointed officer or employee or officially designated representative, whether compensated or not, of the United States or any of its agencies, the State of Califc_nia, any political subdivision of the state, including cities, counties, districts, or any public corporation, agency or commission. Chapter 12.06 Municipal Election Compaian Contribution Control PART 1 CAMPAIGN CONTRIBUTION 12 ,06_010 Intent and Purpose. It is the intent of the City Council of the City of San Jose in enacting this Chapter to place realistic and enforceable limits on the amount individuals and independent committees may contribute to political campaigns in municipal office elections for the purpose of preventing the perception by the public that campaign contributors exercise undue or improper influence over elected officials. In order to achieve this purpose it is not necessary to, nor is it the City Councils intent to impose limitations on individuals and committees whose sole objective is the passage or defeat of ballot measures. 12.06.020 Definitions. A. "Business entity" : Any organization or enterprise operated for profit, including but not limited to a-proprietorship, partnership, firm, business trust, joint venture, syndicate, corporation or association. 9595c/0479k .g 11/8/93 2 499 B. "Candidate" : An individual who: 1 . Is listed on the ballot; or 2 . Has qualified to have write-in votes on his or her behalf counted by election officials for nomination or election to any elective City office; or 3 . Gives his or her consent for any other person to receive a contribution or make an expenditure with the intention of bringing about his or her nomination for or election to any elective City office, whether or not the specific elective office for which he or she will seek nomination or election 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 such time. 4. "Candidate" also includes any City officeholder who is subject to a recall election. S . Files a Statement of Intention to be a candidate with Fair Political Practices Commission. An individual who becomes . a candidate shall retain his or her status as a candidate until such time as that status is terminated pursuant to Government Code Section 84214. C. •Committee" : Any person who directly or -indirectly receives contributions or makes expenditures or contributions for the pu--pose of influencing or attempting to influence the action of the voters in a municipal election for or against the nomination or election of one or more candidates if: -10- 9595c/0479k JRG:NS:g lk:s l ,11/8,/93 1. Contributions received total Five Hundred Dollars ($500) or more in any calendar year; or 2 . Independent expenditures total Five Hundred Dollars ($500) or more in a calendar year; or 3 . Contributions made to or at the behest of candidates and committees total Five Thousand Dollars ($5,000) or more in a calendar year. D. 'Contribution° : Any payment, loan, forgiveness or postponement of a loan, payment of a loan by a third party, or an enforceable promise to make a payment except to the extent that full and adequate consideration is received, made for the purpose of influencing any municipal election, unless it is clear from the surrounding circumstances that it is not made for political purposes. An expenditure benefiting a candidate or committee made at the behest of a candidate, committee' or elected officeholder is a contribution to the candidate, committee or elected officeholder unless full and adequate consideration is received for making the expenditure. 'Contribution" includes the purchase of tickets for events such as dinners, luncheons, rallies and similar fund-raising events; the granting of discounts or rebates not extended to the public generally or the granting of discounts or rebates by television and radio stations and newspapers not extended on an equal basis to all candidates for the same office; the payment of compensation by any person for the personal services or expenses of any other person if such services are rendered or expenses incurred on behalf of a candidate or committee without payment of full and adequate consideration; and the transfer of anything of value. 9595c/O479k -11- 11/8/93 "Cc=-.ribution" does not include volunteer personal services; pal-rents made by an individual for his or her own travel expenses if such payments are made voluntarily without any understanding or agreement that they shall be directly or indirectly repaid to him or her; or independent expenditures made by independent committees . E. "Cc=trolled committee" : 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 ex--enditures. A candidate controls a committee if such candidate, his or her agent, or any other committee such candidate controls has a significant influence on the actions or decisions of the co=mittee. F. "Debt Retirement Contribution" : Any contribution received which is intended or used to retire the outstanding election debt of any candidate for the office of Councilmember or Mayor. G. "Election" : Any regularly scheduled municipal or special municipal election. Recall elections are not considered elections for purposes of this Chapter. H. "F_scal Year" : The period from July 1 to June 30 of the following calendar year. I. •Fair Political Practices Commission" : The body charged with aQinistering the Political Reform Act and adopting implementing regulations. J. •Independent Committee" : All committees other than controlled committees. R. "independent Expenditure" : An expenditure which is not made with the cooperation or the prior consent of, or in consultation with, -12- 9595c/0479k JRG:NS:glk:sl ,`��,499 or at the request of a candidate or any agent or an authorized or cc=trolled committee of such candidate. L. "La`e contribution" : Any contribution, including a loan, which totals in the aggregate two hundred fifty dollars or more that is made to or received by a candidate, a controlled committee, or a co-=mittee formed or existing primarily to support or oppose a ca-didate before the date of the election at which the candidate is to be voted on but after the closing date of the last campaign statement required to be filed before the election. M. "OfEficeholder Contributions" : Funds used for noncampaign office- holder expenses and constituent services, including but not limited to, newsletter expenses, subscribing to publications, - taking constituents to dinner to discuss City business, and defraying the cost of trips made in connection with the discharge of official duties. N. "Person" : An individual, business entity, foundation, organization, committee or association, non-prof it' corporat ion, and any other organization or group of people acting in concert. O. 'Political Refoxm Act' : Government Code Section 81000 et seq. as amended. N. •S Zatement of Intention to be a Candidates : A written statement, filed with the Fair Political Practical Commission in accordance . wi;.h Government Code Section 85200 and regulations thereunder, declaring intention to be a candidate for a specific elective City office. 12 .06.030 Prohibitions and Recmirementa Applicable to Agents A. •Agent" shall include a candidate's campaign consultant, the -13- 9595c/0479k jk<a:iva:C-1C:61 1;�C�Q 11/8/93 S aJ conszltant's employees, and any other person authorized by a candidate, the candidate' s controlled committee or the candidate' s con=sltant to take any action to bring about the candidate' s no,--- nation for or election to any elective City office. B. The prohibitions and requirements of this Chapter applicable to a candidate shall also apply to the candidate's agent. 12 .06.040 Contribution Collection and Expenditure Periods. A. No person shall solicit or accept any contributions for any caa- aign for a future election to a City Council or Mayoral office prior to July 1 of the year preceding the year of the election for that term of office. B. For the purposes of this Section, an "election period" shall begin on July 1 of the year preceding the year of the election or on the date a Statement of Intention to be a Candidate for a different office or new term of office is filed with the Fair Political Practices Commission, whichever is earlier, and shall end when the election is over or the candidacy is formally withdrawn. C. No contributions shall be solicited or accepted in connection with a prior or currently held office nor shall expenditures be made from contributions already collected in connection with a prior or currently held office during an election period except that nothing herein shall preclude the payment of obligations incurred for services and goods received prior to the election period.' D. The exceptions in Section 12 .06.240E shall apply to this Section. 12 .06.050 Deposit of Personal Funds into Camuaican Bank Accounts. A. No candidate may deposit personal funds into his or her campaign -14- 9595c/0479k JKG:i:� :giK:sl il/8/53 42.14,93 b.nk account during the period beginning seven (7) days prior to election day until the day after the election. B. A candidate must disclose the source of all personal funds deposited into his or her campaign bank account. If the source of the funds is a loan to the candidate, the name and address of the lender and the terms of the loan must also be disclosed. C. The information required by Subsection B must be reported, on a form provided by the City Clerk, on or before the date of the next pre-election statement which must be filed after the funds are deposited into the campaign bank account. 12.06.060 Contribution Limitations to City Council Candidates. No person, other than the candidate in aid of himself or herself, shall make nor shall any person solicit or accept any contribution in aid of and/or opposition to the nomination or election of a candidate for Clty Council which will cause the total amount contributed by such perm= to the candidate and any controlled committee of such candidate to exceed. Two Hundred Fifty Dollars ($250) during a single fiscal year. 12.06.070 Contribution Limitations to Mayoral Candidates. No person, other than the candidate in aid of himself or herself, shall make nor shall any person solicit or accept any contribution in aid of and/or opposition to the nomination or election of a candidate for Mayor which will cause the total amount contributed by such person to the candidate or any controlled committee -of such candidate to exceed Five Hundred Dollars ($500) during a single fiscal year. 12.06-080 Bxvloratory Camvaians. A. Mienever a person has filed Statements of Intention in order to -15- 9595c/0479k I W .J► 1 'v JRG:NS:g_►c:sl 11'/8/93 exp:ire possible candidacies for both Council and Mayoral offices, no :arson, other than the candidate in aid of himself or herself, shall make nor shall any person solicit or accept any contribution in aid of and/or in opposition .to such candidacies which will cause the total amount contributed by such person to the con=rolled committees of such candidate to exceed Five Hundred Dol_ars ($500 .00) during any fiscal year. B. Whomever such candidate determines not to seek one or the other of the offices,. -the campaign funds may be merged to the extent that the total contribution from each contributor does not exceed the maDdmum allowed pursuant to this Chapter for the office being sought. C. Any funds in excess of the total amount permitted by this Chapter for the office being sought shall be deemed excess contributions and either refunded to the donors or donated to the general fund to rdefray the costs of municipal elections within thirty (30) days ion papers with the City Clerk. of the filing of nominat 12 .06.090 Contribution Limitations to Independent Committees. A. No person shall make nor shall any person accept any contribution to or on behalf of an independent committee expending funds or making contributions in aid of and/or opposition to the nomination or election of a candidate for City Council or Mayor which will ca=se the total amount contributed by such person to such independent committee to exceed Five Hundred Dollars ($500) during - a single fiscal year. B. Independent committees -contributing to election campaigns in addition to City of San Jose Council or Mayoral election campaigns shall segregate contributions received and contributions or emenditures made for the purpose of influencing such San Jose -16- 9595c/0479k TRG:NS:glk:sl 2#1499 611/8/93 elections from all other contributions or expenditures. Where an independent committee has segregated such contributions and expenditures for such City elections, contributors to that committee may contribute more than Five Hundred Dollars ($500) so long as no portion of the contribution in excess of Five Hundred Dollars ($500) is used to influence San Jose Council or Mayoral elections. C. This Section is not intended to prohibit or regulate contributions to independent committees to the extent such contributions are used on behalf of or in opposition to candidates for offices other than Mayoral or Council offices of the City of San Jose. 12 .06.100 Contributions and Expenditures by Independent Committees. A. Independent committees are "persons" for purposes of the contribution limitations to City Council and Mayoral candidates (Section 12 .06.060 and Section 12.06.070) . Any expenditure by an independent committee in aid of or in opposition to a council or mayoral candidate which is not an •independent expenditure* is deemed to be a contribution to that candidate, subject to limitation. For purposes of this Chapter •independent expenditure" shall be .defined as set forth in Section 12.06.020 and as amplified in the regulations of the Federal Election Cocsnission at it Code of Federal Regulations, Section 109.1. B. Bach independent committee making contributions or independent expenditures in a council or mayoral election which does not participate in elections other than for City offices shall file the reporting statements required by Section 12.06.300. For each expenditure or contribution, the committee shall report what amount or portion was of benefit to a particular candidate. -17- 9595c/0479k • 11/8/93 12 . 06 .10 Anonymous Contributions . A. No e rson shall make nor shall any person solicit or accept any anc7-vmous contribution, gift, subscription, loan, advance, depcsit, pledge or promise of money or anything of value in aid of or opposition to a candidacy. B. All anonymous contributions shall be surrendered to the Director of Finance for deposit in the general fund of the City, earmarked to defray the costs of municipal elections. 12 . 06.120 Contributions Through Other Persons Prohibited. In applying the limitations set forth in this Chapter to the contrib-cations of a person, each contribution made under any of the follow4--g circumstances shall be deemed to have been made by the person and shall be included in determining whether the applicable limitation for such person has been exceeded: A. A contribution by a business entity more than fifty percent (50%) of which is owned by the person. Any contribution by a business entity more than fifty percent (50%) of which is owned by such business entity is also attributable to said person. B. A contribution by an employee over whom the person exercises co=trol as a supervisor or as an owner of the business entity for wh_ch the employee works, where the contribution was coerced by the person or made at his or her instigation from monies given or prcciised to the employee as a gift, bonus or otber form of re'.mbursement for the contribution. C. A contribution of a spouse or child, of the person where the contribution is coerced by the person or made from monies given or promised by the person in instigation of the contribution. -18- 9595c/0479k JRG:NS:glk:sl i 1493 11/$/93 12 . 06.130 Certain Contributions by Business Entities Prohibited. In applying the limitations set forth in this Chapter to the contributions of business entities, the following additional 'rules shall apply: A. Where two or more business entities have any owners, shareholders or partners in common and the total percentage of ownership by all such shareholders or partners in common is more than fifty percent of each such business entity, the total contributions by all such business entities shall not exceed the applicable campaign limitation. B. Where one business entity owns more than 50% .of one or more other business entities, the total contributions of all such business entities shall not exceed the applicable campaign limitation. 12.06.140 Excess Contributions. No person shall be found in- violation of Section 12.06.060 or 12.06.070 of this Chapter for having made, solicited or accepted any contribution. in excess of the limits prescribed by said sections, provided that: A. The excess contribution was made, solicited or accepted at a time when the person was not a candidate for the elective City office subject to the limitation, and within thirty days of his or her becoming a candidate either: 1. The amount of contribution in excess of the prescribed limitation was refunded to* the donor; or 2. The amount of contribution in excess of the prescribed 'limitation was donated to the general fund of the City, 9595c/0479k -19 11/8/93 OF1'' 4 Cj earmarked to defray the costs of municipal elections . B. Suc excess contribution was made, solicited or accepted at a time when the person was a candidate for the elective City office subject to the limitation, and as soon as reasonably possible and in no event more than thirty days after his or her discovery of the excess contribution either: 1. The amount of contribution in excess of the prescribed limitation was refunded to the donor, or 2. The amount of contribution in excess of the prescribed limitation was donated to the general fund of the City, earmarked to defray the costs of municipal elections. 12 . 06.150 Construction with Political Reform Act. This Chapter is intended to be more stringent that the Political Reform Act. It differs from that Act in many particulars. To the extent that the limitations and requirements imposed by this Chapter are different from those set forth in the regulations of the Fair Political Practices* Commission, such different limitations and requirements shall be applied and interpreted so as to be no less stringent than those regulations. 12.06.160 Transitional Provisions. A. It is the intent of the transitional provisions to allow all funds lawfully contributed to any City Councilmember or Mayor or i candidate for such office prior to July. 1, 1989 to be expended to the extent and in the manner consistent with this Chapter. B. Any funds lawfully contributed for campaign or officeholder t purposes between January 1, 1989 and July 1, 1989 shall be treated -20- 9595c/0479k JRG:NS:glk:sl 11/8•/93 for purposes of this Chapter as if such funds had been contributed on July 1, 1989 . C. Any funds collected for debt retirement purposes prior to July 1, 1989, shall be governed by the Ordinance in effect on the date the funds were collected. D. Any funds lawfully contributed prior to January 1, 1989, for a campaign for an office term beginning January 1991 shall be treated for purposes of this Chapter as if such funds had been contributed on July 1, 1989 . B. Any candidate who collected funds prior to July 1, 1989 for a campaign for an office term beginning January 1993 may file a written declaration with the City Clerk that such funds will be 'inactive" until July 1, 1991. If such declaration is filed, officeholder and debt retirement funds can be collected and expended in accordance with this Chapter until that date. Notwithstanding subsection B above, any such funds shall be treated for purposes of this Chapter as if such funds had been contributed on July 1, 1991. F. No campaign funds collected under this Chapter as it existed prior to July 1, 1989, for an' office term which began on or before January 1, 1989 shall be utilized for campaign purposes for any election after that date. G. The period of July 1, 1989 to September 15, 1989 shall be deemed the transition period. Any funds collected in the transition period will not be deemed in violation of this Chapter, if maintained and expended in accordance with this Chapter as amended effective September 15, 1989 and any excess contributions either refunded to the donor or donated to the general fund to defray the costs of municipal elections within thirty days thereafter. 9595c/0479k -21- a1Kb:tvJ :C1K:51 ,11/8,/93 �� Part 2 OFFICEHOLDER. DEBT RETIRFMENT AND SPECIAL ELECTIONS 12 - 06 .200 Intent and Purpose. It is the intent of the City Council of the City of San Jose in enactir-c this Part to place limits on the amount individuals may contribute to officeholders for the purpose of preventing the perception by the public that such contributions may give rise to undue c= improper influence over elected officials. 12. 06 .23.0 Limitation on Post-election Contributions to Councilmembers. Except as specifically provided by Section 12.06.270A, during the term of office of a Councilmember, no Councilmember or controlled committee of the Councilmember shall accept or solicit from any person more than Two Hundred Fifty Dollars ($250) in the aggregate during any single fiscal year and no person shall contribute more than Two Hundred Fifty Dollars ($250) in the aggregate during any single fiscal year to a Councilmember. Any funds collected pursuant to this Section may be used only for officeholder purposes, debt retirement for debt from elections which occurred before July 1, 1993, or- charitable purposes. 12 .06.220 Limitation on Post-election Contributions to the Mayor. Except as specifically provided by Section 12.06.270B, during the term cf office of a.Mayor, no Mayor or controlled ccamittee of the Mayor shall accept or solicit from a person more than Five Hundred Dollar ($500) in the aggregate during a single fiscal year and no persor- shall contribute more than Five Hundred Dollars ($500) in the aggregate to a Mayor during any single fiscal year. Any funds collected pursuant to this Section may be used only for officeholder purposes, ' debt retirement for debt from elections which occurred -22- 9595c/0479k . JRG:NS:glk:sl .11/8/93 before ouly 1, 1993, or charitable purposes . 12 . 06.230 Excess Contributions. No person shall be found in violation of Section 12.06.210 or 12 .06.220 of this Chapter for having made or accepted any contribution in excess of the limits prescribed by said Sections, provided that: A. 71,.a amount of contribution in excess of the prescribed limitations sha11 have been refunded to the donor within thirty (30) days of receipt by the committee; or B. The amount of contribution in excess -of the prescribed limits shall have been donated to the general fund of the City of San Jose within thirty days of receipt. 12 .06.2 40 Restrictions on Officeholder Contributions and Expenditures. A. Any officeholder or controlled committee of the officeholder may co=tinue to solicit and accept contributions after the election fo= the purpose of paying officeholder expenses. Such contribu- tions are subject to the limitations of Section 12.06.210 and Section 12.06.220 of this Part. B. Contributions shall not be expended directly for salaries of Co=cilmembers' or Mayor's office personnel. However, funds may be donated by committees to the' City of San Jose and appropriated by the City Council for office personnel; said funds to be' expended pursuant to procedures and regulations established by the City Manager from time to time. ' C. Eve=y committee collecting office holder's contributions shall file semi-annual officeholder statements. -23 9595c/0479k - 11/8/93V 0" 99 T T , D. During an election period, no expenditures shall be made from off_ceholder contributions except for the payment of obligations incurred for services and goods received prior to the election period. "Election period" shall have the same meaning as found in Section 12 . 06 .040B. E. The prohibitions of this Section and Section 12.06.040 of this Chapter do not apply to: ` 1 . Officeholders who are ineligible to run for any City office during the election period; and 2 . Officeholders who have made a' final determination not to run for any City office in the election period and have filed a statement of non-candidacy for City office with the City Clerk. Until such statement is filed, no expenditures shall be made from officeholder contributions during the election period. 12 .06.2 50 Restrictions on Debt Retirement Contributions. A. Any candidate or controlled committee of the candidate may cemtinue to solicit and accept contributions for the purpose of retiring debt incurred in the campaign for a period of thirty (30) days after the election. No debt retirement contributions may be solicited or accepted by a candidate or controlled committee after this thirty-day period. B. Dea)t retirement contributions must meet the following limitations: 1- No candidate for City Council or anyone on his or her behalf may accept a total of more than Two Hundred Fifty Dollars ($250) from any single contributor for any and all purposes during a single fiscal year, except as provided in Section 12.06.270A. . -24- . 9595c/0479k 11/8/93 �A T 1:1° f" ' 2 . No candidate for Mayor or anyone on his or her behalf may accept a total of more than Five Hundred Dollars ($500) from any single contributor for any and all purposes during any single fiscal year, except as provided in Section 12 .06 .270B. 3 . No debt retirement contributions may be solicited or accepted from any contributor in excess of the amount which could have been collected from that contributor prior to the election. C. Aa%• candidate who collects debt retirement contributions must provide separate documentation to the City Clerk in the form of a Debt Retirement Statement which demonstrates compliance with the provisions of this Section. Such documentation shall include a listing of each contributor to the campaign and the total contribution for that contributor to date and the date and amount of each separate contribution from that contributor. D. The Debt Retirement Statement shall be filed with the City Clerk in accordance with Section 12.06.300E. 12 .06.2 60 Deadline for Debt Retirement. A. A candidate must retire all campaign-related debts, including any loans, within six months after the date of the election. B. A campaign-related debt, including any loan, which remains unpaid more than six months after the election is a debt-retirement ccntribution to the candidate subject to the following limitations: 1- The total amount of contributions from a person to a candidate for City Council for any one election shall not exceed $250. 2- The total amount of -contributions from a person to a -25- 9595c/0479k 1118/93 ca=-idate for Mayor for any one election shall not exceed $500 . C. It is a violation of this Section to forgive all or part of a loan or debt which is owed to the person by a candidate and which exceeds the applicable contribution limitation. Forgiveness of a loan or debt shall not be deemed to include the failure to collect the loan or debt where there have been substantial attempts, in good faith, to collect the monies owed and such efforts have prcved unsuccessful. D. Th--' s Section applies only to debts incurred or loans received by a candidate or controlled committee after July 1, 1993 . 12 .06.270 Special Elections. A. Whenever a special election for a Council seat and a regularly scheduled election occur in the same fiscal year, any candidate who files a Statement of Intention to be a Candidate with the Fair Political Practices Commission for both elections may solicit and accept Two Hundred Fifty Dollars ($250) for the special election ar_d, Two Hundred Fifty Dollars ($250) for the regularly scheduled election during the same fiscal year. B. Whenever a special election for Mayor and a regularly scheduled election occur in the same fiscal year, any candidate who files a Statement of Intention to be a candidate with the Fair Political Practices Commission for both elections may solicit and accept F=ve Hundred Dollars ($500) for the special election and Five H--=dred Dollars ($500) for the regularly- scheduled election during tie same fiscal year. -26- 9595c/0479k low JRG:h-S:glk:sl 11/,8/93 ..., , 143 Part 3 CAMPAIGN DISCLOSURE 12 .06 _300 Statements A. E-ach candidate and each committee, except committees whose sole p---pose is to support or oppose a ballot measure, shall file, as a p-.:.blic record with the City Clerk, cumulative itemized reports at t=e times specified herein showing the total amounts of contributions received and expenditures made. The required s=atements may be completed on campaign statement forms required to be filed by the regulations of the Fair Political Practices Cczmnission so long as such forms are completed in sufficient detail to comply with the requirements of this Chapter. Such statements shall contain a declaration by the candidate or committee treasurer that the candidate or committee has neither accepted nor solicited any campaign contribution in excess of the limitations of this Chapter. B. The first and second statements shall be filed at the times . prescribed for pre-election statements by the Political Reform Amt. The third pre-election statement shall be filed not later than five days prior to election day at twelve noon of that day. The statement shall cover the period closing seven days prior to election day. C. For the general and primary election, this third pre-election sttatement is due at twelve noon of the Thursday preceding the election for the period ending on the Tuesday prior to the election. D. Miereafter semi-annual statements shall be filed in the form and a= the times required by the regulations of the Fair Political Practice Commission. -27- - 9595c/0479k __ JRG:NS:clk:sl -11/8193 E. A Debt Retirement Statement (available from the City Clerk) in accardance with Section 12 . 06 .250E shall be filed in conjunction with the Annual Loan Report filed with the Fair Political Practices Commission. 12 . 06.310 Late Contributions A. Each candidate or committee that makes or receives a late contribution shall report the late contribution to the City Clerk. The candidate or committee that makes the late contribution shall report his or her full name and street address and the full name and street address of the person to whom the late contribution has been made, and the date and amount of the late contribution. The recipient of the late contribution shall report his or her full name and street address, and the date and amount of the late contribution. The recipient shall also report the full name of the contributor, his or her street address, occupation and the name of his or her employer or if self-employed, the name of the business. B. A late contribution shall be reported by mailgram, telegram or personal delivery within twenty-four hours of the time it is made in the case of the candidate or committee that makes the contribution and within twenty-four hours of the time it is received in the case of the recipient. A late contribution shall be reported on subsequent campaign statements without regard to reports filed pursuant to this section. C. A late contribution need not be reported nor shall it be deemed accepted if it is not cashed, negotiated or deposited and is returned to the contributor within twenty-four hours of its receipt. D. A report filed pursuant to this section shall. be .in addition to -28- 9595c/0479k JRG:NS:giK:sl 1'11/8/93 ,,`�+� 44` 9 any other campaign statement required to be filed by this Chapter. 12 . 06 .320 Duties of the City Clerk A. A City Clerk shall, upon receipt of the third pre-election statements, five days prior to the election, prepare a report to be published in the morning San Jose Mercury News. The report shall contain the total contributions and expenditures for each of the candidates and for each independent committee. The Clerk shall cause the report to be published two days prior to the election. B. In the event the City Clerk has reason to believe a late contribution has not been reported, the Clerk shall notify the Ethics Board. 12 .06-330 Disclosure of Post-Election Payment Agreements A. A candidate or his or her controlled committee must disclose, on a form provided by the City Clerk, any campaign-related agreements entered into by the candidate or controlled committee which provide for post-election payments. Such agreements include, but are not limited to, contingency payment or "bonus' payment plans offered by campaign consultants and agreements with persons who will receive compensation after the election for campaign services performed prior to the election. B.- A post-election payment agreement must be reported on or before the filing date of the next pre-election- statement which must be filed after the agreement is entered into. -29- 9595c/0479k vtCll:lrJ : : 11/8/93 Chapter 12 .08 Prohibition of Gifts 12 . 08. 010 Gifts Prohibited. A. No officer or designated employee of the City or its Redevelopment Agency shall accept any gift, directly or indirectly, from any person who is subject to the decision-making or recommending authority of such officer or employee, except as specifically provided in this Chapter.. B. "Person subject to the decision-making or recommending authority" means any individual, firm or entity whose interest or whose employer's or client's interest: 1. Has been materially affected by the work of such officer or employee within the two years prior to the time the gift is given, or 2 . In the future could reasonably be foreseen to be materially affected by the work of such officer or employee. 12.08.020 Gift Defined. 'Gift" means a voluntary transfer of any thing, service, payment or value to the extent that legal consideration of equal or greater value is not received. A. As used in this Chapter, the term •gift• includes: 1. Any rebate or discount in the price of anything of value unless the rebate or discount is made in the regular course of business to members of the public without -30- 9595c/0479k JRG:NS:glk:sl ll/S/93 ti'� � 3• regard to official status, or unless the rebate or discount is made available to all officers and employees of the City and Redevelopment Agency on an equal basis. 2 . An officer's or employee' s community property interest, if any, in a gift received by that individual' s spouse. 3 . The provision of travel, including transportation, accommodations and food, except as expressly permitted pursuant to Section 12 .08. 030. B. As used in this Chapter, the term 'gift' does not include: 1. Campaign contributions which otherwise comply with Title 12 of the Municipal Code and which are required to be reported under Chapter 4 of the Political Reform Act of 1974 as amended. 2 . Any devise or inheritance. 12 .08_030 Gifts Not Prohibited. This Chapter does not prohibit those gifts which strictly fall within the exceptions enumerated herein: A- Gifts Less Than $15 .00 Token gifts which have a-value of no more than Fifteen Dollars ($15.00) , as long as the total value of all such token gifts received from any one donor do not exceed Fifteen Dollars ($15.00) 'in any calendar year. B_ Informational Material Informational material such as books, reports, pamphlets, -31- 9595c/0479k calendars, or periodicals or reimbursement for any such expenses. Informational material does not include provision of educational trips including transportation, accommodation and food. C. Hospitality Gifts of hospitality involving food, beverages or lodging provided to any officer or designated employee by an individual in such individual's primary residence. D. Reciprocal Gifts Gifts exchanged between any officer or designated employee and an individual other than a local governmental lobbyist on holidays, birthdays, or similar occasions. This exception shall not apply to the extent that the gift received by the officer or designated employee exceeds in value gifts that he or she has given to the donor. E. Meals and Beverages Meals and beverages provided to an officer or employee in a business or a social setting. F. Honoraria and Awards Honoraria and awards. As used in this Chapter, "honorarium" means a payment or gift for speaking at an event, participating in a panel or seminar, or engaging in any similar activity. G. Panels and Seminars Free admission, food, beverages, and similar nominal -32- 9595c/0479k JkG:NS:glk:sl 11/8/93 '02WA4 9 benefits provided to an officer or employee at an event at which the officer or employee speaks, participates in a panel or seminar or performs a similar service, and reimbursement or advance for actual intrastate travel or for necessary accommodations provided directly in connection with such event. H. Admission Given by Sponsor of an Event Admission to ceremonial, political, civic, cultural or community functions provided by a sponsor of the event for the personal use of the officer or employee. I_ Employment Interview - Government Employer Transportation, accommodation, food and directly related expenses advanced or reimbursed by a governmental agency in connection with an employment interview, when the interview is conducted at least 150 miles from San Jose-and where the situs of the employment will be at least the same distance from the City. J_ E=lovment Interview - Private Employer Transportation, accommodation, food and directly related expenses incurred in connection with an employment interview and a bonafide prospect of employment, when the expenses are advanced or reimbursed to an officer or designated employee by a potential employer, provided that the officer or designated employee has not made or participated in the making of a governmental decision materially affecting the financial interest of the potential employer during the twelve (12) months immediately preceding the time the expenses are incurred or the offer of employment is made, whichever is sooner. -33- 9595c/0479k JRG:NS:clk:sl 03-1,199 11/8193 K. Authorized Travel Transportation, accommodation, food and directly related expenses for any officer or designated employee which has been authorized by a majority of the Council or Agency Board or which is pursuant to a written City or Agency policy for intrastate or interstate travel regardless of the source of payment. L. City or Agency Business Transportation provided to an officer or designated employee by 'a contractor or other person doing business with the City or Redevelopment Agency, provided that such transportation is related to City or Agency business which is within the scope of employment or the duties of such officer or designated employee, and further provided that such transportation is not in excess of 125 miles one way. Nothing in this Subsection shall be interpreted to limit the Council' s or Agency Board's discretion to approve travel under Subsection K above. M. Flowers Flowers, plants or balloons which are given on ceremonial occasions, to express condolences or congratulations, or to commemorate special occasions. N. Prizes A prize awarded on the basis of chance, provided that there are at. least one thousand (1,000) participants eligible to win the prize, a majority of whom are not public officials or government employees. -34- 9595c/0479k . JRG:KS:glk:sl �:��9 11J 815 3 . ,cr, 12 . 0 6 . 040 Acceptance of Gifts. A gift shall be deemed to have been accepted except where: A_ It is not used, and, within thirty (30) days after receipt, is returned to the donor or delivered to a charitable organization without being claimed as a charitable contribution for tax purposes. F_ It is treated as and remains the property of the City or Agency. C_ It is received by an officer or designated employee in his or her official capacity or as a representative of the City or Agency, is reported to the City Council or Agency Board, and the Council or Board approves the retention. 12 .08-050 Reporting Gifts to SRouse and Children. A- At the -time of filing the annual disclosure statement required by the Political Reform Act or any applicable conflict-of-interest code, each City and Redevelopment Agency officer and designated employee shall file a Family Gift Report on a form to be provided by the City Clerk. B_ The officer or designated employee shall indicate on such report any gifts known to have been accepted during the revelant reporting period by such' officer's or employee's spouse or any dependent child where- such gifts would have been prohibited to the officer or employee. The value of any such gift and the 'donor must be disclosed. If the officer or employee has no knowledge of any such gift having been received, the report shall so state. • -35- 9595c/0479k 11/8/93 Chapter 12 .10 Revolving Door Prohibitions 12 .10. 010 Prohibited Agency. A. No former officer or employee of the City or Redevelopment Agency shall, within one year after such person' s employment or term of office has ceased, act as agent for or attorney for or otherwise represent (by formal or informal appearance or through verbal or written communication) any person other than himself or herself or any entity other than the City of San Jose or Agency, except as a public official, in connection with any proceeding, application, request for ruling or other determination, contract, claim, controversy, or other particular matter involving a specific party or parties in which the City or Agency has a direct or substantial interest and in which such person exercised responsibility or participated. B. 'Participated" means to have taken part personally and substantially, within one *year prior to the termination of such office or employment through decision, approval, disapproval., formal written recommendation or use of confidential information gathered while employed, but excluding the rendering of advisory legal opinions which do not involve a particular party or parties. 12 .10.020 Prohibited Assistance or Consultation. No former City or Redevelopment Agency officer or designated employee, shall for compensation, within one year after such persoa' s term of office or employment has ceased, aid, advise, -36- 9595c/0479k 'JRG:NSglk:sl f449 .11/8,/93 counsel , consult or assist in representing any person other than himself or herself or any entity other than the City or Agency except as a public official, in any proceeding or' other matter in which the former officer or designated employee would be prohibited from appearing under Section 12 .10. 010. 12 .10. 030 Prohibited Subsequent Compensation. A. No former City or Redevelopment Agency officer or designated employee shall, within one year after his or her term of office or employment has ceased, receive any gift or payment which exceeds the reasonable value of any consideration given in exchange for it from any person or entity whose financial interests were materially affected by any governmental action in which the officer or employee participated within one year prior to the termination of such office or employment. B. For purposes of this Section 'consideration given in exchange" shall refer only to consideration provided by such former City or Agency officer or employee after the term of office -or employment has ceased and which is unrelated to the exercise of or failure to exercise the official duties of such office or employment. 12.10.040 - $xemntions. ,The provisions of this Chapter shall not apply: 1. To prevent a former City or Redevelopment' Agency officer or designated employee from making or providing a statement as a witness .or otherwise, which statement is based on such person's own special knowledge in the particular area which is the subject -37- 9595c/0479k 11/8/9. AW4499 of the statement, provided that no compensation is thereby received other than that regularly provided by law or regulation for witnesses . 2 . To a former public official who served without compensation, other than expenses, on a purely advisory board, commission, or committee of the City or Agency. 3 . To any activity which would otherwise be prohibited by the provisions of this Part when such activity is found to be not detrimental to the interest of the City or Agency and is authorized and approved prior to its occurrence by a majority of the City Council upon full disclosure of the facts surrounding such activity proposed. 4 . To a former City or Redevelopment Agency officer or designated employee who subsequently becomes employed by or volunteers his or her services to another government entity or a non-profit organization, provided that: A. The otherwise prohibited activity is on behalf of such government entity or non-profit organization; and B. Such non-profit organization is an entity which would qualify as such under the federal Internal Revenue Code and has engaged in programs or projects which have received financial or other formal support from the City Council or Agency Board within the past five (5) years. -38- 9595c/0479k ��r � low, 11/8/53 24 499 12 .10. 050 Additional Prohibited Agency. Within one year following service upon any body including boards , committees or commissions of any sort, in any capacity, as an of=icial representative of the City or Redevelopment Agency, any City cr Agency officer or designated employee shall be subject to the p=ovisions of Sections 12 . 10 . 010 through 12 .10.040, in any matte_ involving a specific party or parties in which such body has a direct or substantial interest and in which such officer or desia—_ated employee exercised responsibility. 12 .10_ 060 Board. Committee or Commission Member-Prohibited Activity. No City or Redevelopment Agency officer or designated employee, while serving on any body, including boards, committees or commissions, of any sort, in any capacity, as an official representative of the City or Agency, shall make, participate in making or in any way use his or her official position to influence any decision of such body in which he or she knows or has reason to know he or she has a financial interest as defined in the Political Reforms Act of 1974 as- amended and any regulations related thereto. Chapter 12.12 Local Governmental Lobbviets. 12 .12_010 Registration with City Clerk. A_ No person shall act as local governmental lobbyist before registering as a local governmental lobbyist with the City Clerk. E. At the time of registering, the local governmental lobbyist -39- 9595c/0479k 'ROW �� 1 11/8/93 shall file with the City Clerk, in writing, his or her name, business and residence addresses and the name and address of each client . C. Whenever, subsequent to registering, the lobbyist' s services are engaged by any new client, the name and _ address of that additional client shall be filed by the lobbyist within fifteen (15) days . D. The lobbyist shall re-register annually and at that time shall resubmit the required information. E. The City Clerk shall issue a registration card to each person who qualifies for registration indicating thereon the annual registration date. The lobbyist shall re-register within the month preceding the annual registration date. 12 .12.020 Cessation of Employment. A vocal governmental lobbyist who has terminated all activities requirng registration shall notify the City Clerk of that fact and thereu7Don shall be relieved of any further obligations under this Chapter until such time as he or she commences activity requiring regist--a.tion. 12.12.030 Excevtions. Thee provisions of this Chapter shall not -apply: A. To a public official acting in his or her official capacity; B_ To the publication or broadcasting of news items, editorials, or other comments, or- paid advertisements, which directly or indirectly urge governmental action; -40- 9595c/0479k JRG:NS=glk:sl 11/8/93 21499 C. To a person specifically invited by the City Council or Redevelopment Agency or any committee thereof, or by any board or commission, or any committee of a board or commission, or by any officer, or employee of the City or Agency charged by law with the duty of conducting a hearing or making a decision, for the purpose of giving testimony in aid of the body or person extending the invitation; or D. To" a person who, without extra compensation and not as part of, or in the ordinary course of his or her regular employment, appears to present the position of organizations such as a taxpayers' association or trade association when that association or organization has one or more of its officers, employees or representatives already registered under the provisions of this Chapter. E. Any attorney, architect or civil engineer whose attempts to - influence governmental action are limited to: 1. Publicly appearing at a public meeting,- public hearing, or other official proceeding open to the public; 2. Preparing or submitting documents or writings in connection with the governmental action for use at a public meeting, public hearing, or other official proceeding open to the public; and 3 . Contacts with employees and agents of the City Manager or Executive Director of the Agency directly relating to 1 and 2 above. F. Any employee whose lobbying efforts are in behalf of an employer, if influencing the actions of governmental agencies is not a regular part of his or.her employment. -41- 9595c/0479k JRG:NS :c K:sl 11/8193 ti �� � 12 .12 . 040 Noncompliance-Order to Show Cause A. Upon the request of the Council, the Mayor, or any board or commission or member thereof, or any officer or designated employee of the City or Redevelopment Agency, the City Clerk shall issue an Order to Show Cause to any unregistered person. B. Said Order shall specify a time and place where such person shall appear to provide evidence satisfactory to the Ethics Board that he or she has complied with the registration requirement or is exempt from registration. C. If the Ethics Board determines that such person is subject to registration and he or she fails to register within seven (7) days of that determination, he or 'she shall be barred from appearing before City Council or Redevelopment Agency except at a public hearing on his or her own behalf or on oral petition Such debarment shall be in effect for three (3) months from the date of such determination or until registration, whichever is later. 12 .12.050 Availability of Information. All registration information shall be retained by the Clerk for a period of five (5) years from the date of filing, shall constitute part off the public records of the City Clerk' s Office, and shall be open to public inspection. 12.12 _060 Filing under Penalty of Periury. A-11 registration information required by this Chapter shall be filed with the City Clerk on forms prescribed by the City Clerk, and accompanied by a declaration by the local governmental lobbyist that the contents thereof are true and correct under penalty of perjury. -42- '9595c/0479k •JRG:KS:glk:91 • '11/8/93 F_�, • 21 499 12 .12 . 070 No Unregistered Employment or Activity. A_ A local governmental lobbyist shall not engage in any activity on behalf of a client as a local governmental lobbyist unless such lobbyist is registered and has listed said client with the City Clerk. b_ No person shall accept compensation for acting as such lobbyist except upon condition that he or she forthwith register as required by this Chapter. 12.12 . 080 Personal Obligation of City Officials Prohibited. Focal governmental lobbyists, clients, contractors, and persons doina business with the City or the Redevelopment Agency shall abstain from doing any act with the express purpose and intent of placing any City or Agency officer or designated employee under perscinal obligation to such lobbyist, client, contractor or person. 12 .12 . 090 Deception Prohibited. No local governmental lobbyist, client, contractor or person doing business with the City or the Redevelopment Agency shall deceive or attempt to deceive a City or Agency officer or designated employee as to any material fact pertinent to any pending or proposed governmental action. 12.12-100 Improper Influence 'Prohibited. No local governmental lobbyist shall cause or influence the introduction of any ordinance,: resolution, appeal, application, petition, nomination or amendment thereto for the purpose of thereafter being employed as a lobbyist to secure its granting, L denial, confirmation, rejection, passage or defeat. '. -43- 9595c/0479k 12 . 12 .110 False Appearances Prohibited. No local governmental lobbyist, client, contractor, or person doing 1 usiness with the City or the Redevelopment Agency shall attempt in any way to create a fictitious appearance of public favor or disfavor of any governmental action or to cause any communication to be -ent to a City or Agency officer or designated employee in the name cf any fictitious person or in the name of any real person, except with the consent of such real person. 12 .12 . 20 Prohibited Representations. No local governmental lobbyist, client, contractor, or person doing business with the City or the Redevelopment Agency shall represent, either directly or indirectly, orally or in writing that such person can control or obtain the vote or action of any City or Agency officer or designated employee. 12 .12 .3.30 Records. A local governmental lobbyist shall retain, for a period of five years, all books, papers and documents necessary .to substantiate the registration required to be made under this Chapter. Chapter 12.14 Concurrent Employment of City Council Members or City or Agency Employees 12 .14_010 Disclosure of Concurrent Emvloyment. A- Any employer. shall disclose concurrent employment, in any capacity, of any officer of the City, Redevelopment Agency or any full time employee of the City or Agency when: -44- 9595c/0479k JRG:NS:glk:sl .11/@/93 1. The employer is a local governmental lobbyist; or 2 . The employer is a client of a lobbyist, who made the offer of employment based the request or recommendation of the lobbyist and with knowledge that such employment was concurrent. B. Within ten days after- such concurrent employment commences, such employer shall file a statement with the City Clerk, setting out the nature of the employment, the name of the person so employed, the amount of pay or consideration to be paid, and the date such employment commenced. Chapter 12.16 Enforcement 12 .16.010 Ethics Board A. The Ethics Board shall review and investigate complaints alleging violation of this Title. B. The Ethics Board shall make recommendations to the City Council with regard to enforcement in accordance with the provisions set forth in this Chapter. 12.16.020 Campaicm Contribution violations. A. Enforcement Standard ' At' the recommendation of the Ethics Board, the City Council may appoint an independent prosecutor to bring a criminal or civil action to enforce the provisions of this Title and/or to seek damages for violations of this Chapter as specified in subsections B and-C- hereunder. --45- • 9595c/O479k _ ,`•_ vrw.1% . �_i!�.5L 11/8193 - f 1499 In :determining whether an enforcement action will be brought, the following factors shall be considered: 1 . Whether or not the violation was willful; and 2 . Whether the violation was pervasive enough to indicate a pattern of disregard for this Chapter; and 3 . Whether corrective actions were taken in accordance with the provisions of this Chapter. B. Effect of violations - Candidates. If, after his or her election, a candidate has acivil judgment en-ered against him or her for violation of the provisions of Chapter 12.06, said candidate shall pay damages to City in the amount of Five Thousand Dollars ($5, 000) or the value of any ce=tribution or contributions rendered in violation of Chapter 12_ 06, whichever is greater, as the penalty for the first violation of that Chapter. If said candidate, subsequent to said first violation, is adjudged to have violated the provisions of that Chapter during any succeeding primary, ge=eral, or special election to any elective City office, the election to office of such candidate shall be void, and such of:f ice shall become vacant immediately thereupon. In such event, the vacancy shall be filled in accordance with the procedures as set forth in the City Charter. C. Effect of violations - Other persons. Amy person, other than a candidate elected to o -a City office, who has a civil judgment entered against him or her for violation of the provisions of Chapter 12 .06, shall pay damages to the City i= the amount of Five Thousand Dollars ($5,000) , or 'the value of -46- 9595c/0479k . . JRG:NS:glk:sl 24 439 V9 anv contribution or contributions rendered in violation of the provisions of that Chapter, whichever is greater. D. Effect of Failure to File Late Contribution Report. Subsections B and C notwithstanding, a candidate or committee failing to file a late contribution report pursuant to Section 12 . 06 .310 shall be required to pay a penalty in an amount equal to the unreported contribution, but not less than One Thousand Dollars ($1, 000) . If the candidate is elected to the office sought, the provisions of subsection B other than the monetary penalty shall apply. 12.16.030 Violations of Other Chapters of This Title. Except as provided in Section 12.16.020, enforcement of this Title shall not be governed by Section 1.08.010 of this Code unless such violation constitutes a separate violation of another Section or provision of this Code or of another applicable provision of law. 12 .16.040 Subject to Discipline. Any violation of this Title by an officer or employee of the City or Redevelopment Agency may be deemed a failure to perform the duties under or observe the rules and regulations of the department, office, board of commission or such officer or employee within the meaning of the civil service ordinances and other City and Agency rules and regulations. 12.16.050 Civil Actions. A. Except as separately provided for violations of Chapter 12.06 in Section 12.16.020, this Title may be enforced in -a civil action brought against any officer or employee who has violated any provision of this Title. 9595c/0479k . 11/8/93 B. The Ethics Board shall recommend to the City Council whether such action should be brought by the City Attorney or by a Special Prosecutor. C. The damages in such a civil action shall be Five Thousand Dollars ($5, 000) or the value of any gift given or services rendered or received in violation of this Title, whichever is greater. Any such damages recovered in such a civil action shall be paid into the City' s General Fund. D. Any person, other than a defendant in a criminal action, who claims that a payment or something of value is not a gift by reason of consideration given, has the burden of proving that the consideration given is of equal or greater value than that received. 12 .16. 060 Additional Sanctions - Revolving Door Violations. In addition to any other remedy provided in this Code, the following sanctions shall also apply to any violations of Chapter 12 .10 where appropriate: 1. Upon the petition of any interested person or party, a court or the presiding officer of any proceeding described in Section 12.10.010 may, after notice and an opportunity for hearing, exclude any person found to be in violation of Chapter 12.10 from further participation, or from assisting or counseling any other participant in the matter then pending before such court or presiding officer. 2. City shall be entitled to recover from any former City or Redevelopment Agency officer or designated employee the monetary value of any compensation or thing of value -48- 9595c/0479k .TRG:NS:glk:sl -1179/93 provided to such person in violation of the provisions of Chapter 12 . 10 . PASSED FOR PUBLICATION OF TITLE this 9th day of November 19 93 , by the following vote: AYES: ALVARADO, BEALL, COLE, FERNANDES, FISCALINI, DEAD, JOHNSON, PANDORI, POWERS, SHIRAKAWA; HAMMER NOES: NONE ABSENT: NONE SUSAN HAMMER, Mayor ATTEST: PATRICIA L. O'HEARN, City Clerk -49- 9595c/0479k IRG:NS:glk 03/22/94 ORDINANCE NO. 24577 AN ORDINANCE OF THE COUNCIL OF THE CITY OF SAN JOSE AMENDING CHAPTER 12.06 AND CHAPTER 12.16 OF TITLE 12 BY RENUMBERING AND CLARIFYING ITS PROVISIONS AND BY THE ADDITION OF A NEW PART 7 TO CHAPTER 12.06 WHICH PROHIBITS INTRA-CITY CAMPAIGN CONTRIBUTION TRANSFERS, AS WELL AS TRANSFERS OF CONTRIBUTIONS TO NON-CITY CAMPAIGNS UNLESS THE POSSIBILITY OF SUCH TRANSFER HAS BEEN DISCLOSED AND WHICH PROHIBITS ALL TRANSFER OF OFFICEHOLDER FUNDS AND WHICH MOVES THE PROVISION WITH REGARD TO PRE- CANDIDACY CONTRIBUTIONS FROM CHAPTER 12.06 TO BE SECTION 12.16.025 IN CHAPTER 12.16 WHICH DEALS WITH ENFORCEMENT. BE IT ORDAINED by the Council of the City of San Jose that: SECTION 1. Chapter 12.06 of the Municipal Code is hereby amended to be numbered, entitled and to read as follows: Chapter 12.06 Municipal Campaign And Officeholder Contributions PART 1 DEFINITIONS 12.06.010 Definitions. The definitions set forth in this Part shall govern the application and interpretation of this Chapter. 12.06.020 Business Entity. 'Business entity'.shall mean any organization or enterprise operated for profit, including but not limited to a proprietorship, partnership, firm, business trust, joint venture, syndicate, corporation or association. JRG:NS:glk O 22/94 12.06.030 Candidate. "Candidate": shall mean an individual who: 1. Is listed on the ballot; or 2. Has qualified to have write-in votes on his or her behalf counted by election officials for nomination or election to any elective City office; or 3. Has given his or her consent for any other person to receive a contribution or make an expenditure with the intention of bringing about his or her nomination for or election to any elective City office, whether or not the specific elective office for which he or she will seek nomination or election 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. 4. Has filed a Statement of Intention to be a candidate with Fair Political Practices Commission. 12.06.040 Committee. "Committee": shall mean any person who, directly or indirectly, receives contributions or makes expenditures or contributions for the purpose of influencing or attempting to influence the action of the voters in a municipal election for or against the nomination or election of one or more candidates if. 1. Contributions received total Five Hundred Dollars ($500) or more in any calendar year; or 2. Independent expenditures total Five Hundred Dollars ($500) or more in a calendar year, or 3. Contributions made to or at the behest of candidates and committees total Five Thousand Dollars ($5,000) or more in a calendar year. nU73-im Corrected Page .), 4 JRG:NS:glk 'ti.&S"77 03/2294 12.06.050 Contribution. A. "Contribution" shall mean: 1. Any payment, loan, forgiveness or postponement of a loan, payment of a loan by a third party, or an enforceable promise to make a payment 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. An expenditure benefiting a candidate or committee made at the behest of a candidate, committee or elected officeholder is a contribution to the candidate, committee or elected officeholder unless full and adequate consideration is received for making the expenditure. 3. Contributions include the purchase of tickets for events such as dinners, luncheons, rallies and similar fund-raising events; the granting of discounts or rebates not extended to the public generally or the granting of discounts or rebates by television and radio stations and newspapers not extended on an equal basis to all candidates for the same office; the payment of compensation by any person for the personal services or expenses of any other person, if such services are rendered or expenses incurred on behalf of a candidate or committee without payment of full and adequate consideration; and the transfer of anything of value. B. Volunteer personal services; payments made by an individual for his or her own travel expenses if such payments are made voluntarily without any understanding or agreement that they shall be directly or indirectly repaid to him or her, or independent expenditures made by independent committees are not deemed to be contributions for purposes of this Chapter. -3- st�273-1s JRG:NS__rlk 03/22/91 12.06.060 Controlled Committee. "font^fled committee" shall mean a committee which is controlled directly or indirectly by a ca-andidate or which acts jointly with a candidate or controlled committee in connexion with the making of expenditures. A candidate controls a committee if such candidate, his or her agent, or any other committee such candidate controls, has a signific,-ant influence on the actions or decisions of the committee. 12.06.070 Debt Retirement Contribution. "Debt Retirement Contribution" shall mean any campaign contribution received which is intended or used to retire the outstanding election debt of any candidate for the office of Councilmember or Mayor. 12.06_080 Election. "Elec5on" shall mean any regularly scheduled municipal or special municipal election. Recall elections are not considered elections for purposes of this Chapter. 12.06_090 Election Period. "Election period" shall mean the period beginning on July 1 of the year preceding the year of the election or on the date a Statement of Intention to be a Candidate for a different office or new term of office is filed with the Fair Political Practices Commission, whichever is earlier, and shall end when the election is over or the candidacy is formallllll�y withdrawn. 12.06-100 Fiscal Year. Tisca" Year" shall mean the period from July 1 to June 30 of the following calendar year. 12.06_110 Fair Political Practices Commission. Fair Political Practices Commission is the body charged with administering the Political Reform Act and adopting implementing regulations. =U73-i: IRG:.T:8 Ik • r 032294 12.06.120 Independent Committee. "Independent Committee" shall mean all committees other than controlled committees. 12-M130 Independent Expenditure. "Independent Expenditure" shall mean an expenditure which is not made with the cooperation or the prior consent of, or in consultation with, or at the request of a candlidate or any agent or an authorized or controlled committee of such candidate or which is not an independent expenditure as set forth in the regulations of the Federal Election Commission at 11 Code of Federal Regulations, Section 109.1. 12.06140 Late Contribution. "Late contribution" shall mean any contribution, including a loan, which totals in the aggregate two hundred fifty dollars ($250) or more that is made to or received by a canddate, a controlled committee, or a committee formed or existing primarily to support or oppose a candidate before the date of the election at which the candidate is to be voted on but after the closing date of the last campaign statement required to be filed before the election. 12.061 SO Officeholder Contributions. "Offioeholder Contributions" shall mean funds collected by City officeholders for the limited purposes set forth in Part 5 of this Chapter. Officeholder funds are not campaign funds for purposes of this Title. 12.06-160 Person. "Person,"for purposes of this Chapter, shall include an individual, business entity, foundation, organization, committee or association, non-profit corporation, and any other organization or group of people acting in concert. 12.06170 Political Reform Act. "Political Reform Act" is Government Code Section 81000 et seq. as amended. ,Un-1= -s- IRG:NS:Fik A - 03/22/94 12.06.180 Statement of Intention to be a Candidate. "Statement of Intention to be a Candidate" is a written statement, filed with the Fair Political Practices Commission in accordance with Government Code Section 85200 and regulations thereunder, declaring intention to be a candidate for a specific elective City office. PART 2 GENERAL PROVISIONS 12.06-210 Contribution Limitations - Per Election and Fiscal Year A. Every contribution, whether campaign, debt retirement, or officeholder, must meet both the "per election' and the 'per fiscal year' limitations. B. Contributions in connection with the office of Councilmember are limited as follows: 1_ During any single fiscal year, the total contributions made by any person to any Councilmember, Council candidate or controlled committee of the candidate may not exceed a total of more than Two Hundred Fifty Dollars ($250) in the aggregate, for all purposes including campaign, debt retirement and officeholder purposes, except as specifically provided by Section 12.06.450A; and. 2_ The total contribution, including debt retirement, made by any person to any Councilmember, Council candidate or controlled committee of a candidate may not exceed: a. Two Hundred Fifty Dollars ($250)for the June election; b. Two Hundred Fifty Dollars ($250)for the November election, if any; -6- IRG:KS:_rik 0312Z'9t C. Two Hundred Fifty Dollars ($250) for each non-election year for Officeholder purposes d. Two Hundred Fifty Dollars ($250) for any special election. C. Contributions in connection with the office of Mayor are limited as follows: 1. During any single fiscal year, the total contributions made by any person to any Mayor, Mayoral candidate or controlled committee of the candidate may not exceed a total of more than Five Hundred Dollars ($500) in the aggregate, for all purposes including campaign, debt retirement and officeholder purposes, except as specifically provided by Section 12.06.45013; and. 2. The total contribution, including debt retirement, made by any person to any Mayor, Mayoral candidate or controlled committee of the candidate may not exceed: a. Five Hundred Dollars ($500) for the June election; b. Five Hundred Dollars ($500) for the November election, if any; C. Five Hundred Dollars ($500)for each non-election year for Officeholder purposes d. Five Hundred Dollars ($500) for any special election. 12.06-220 Applicabillity to Agents. A. "Agent" shall include a candidate's campaign consultant, the consultant's employees, and any other person authorized by a candidate,the candidate's controlled committee or the candidate's consultant to take any action to bring about the candidate's nomination for or election to any elective City office. =U73-1= -7- JRG:NS:Clk 03/22/94 B. The prohibitions and requirements of this Chapter applicable to a candidate shall also apply to the candidate's agent. 12.06130 Anonymous Contributions. A. No person shall make nor shall any person solicit or accept any anonymous contribution, gift, subscription, loan, advance, deposit, pledge or promise of money or anything of value in aid of or opposition to a candidacy. B. All anonymous contributions shall be surrendered to the Director of Finance for deposit in the General Fund of the City, earmarked to defray the costs of municipal elections. 12.06.240 Contributions Through Other Persons Prohibited. In applying the limitations set forth in this Chapter to the contributions of a person, each contribution made under any of the following circumstances shall be deemed to have been made by the person and shall be included in determining whether the applicable limitation for such person has been exceeded: A. A contribution by a business entity more than fifty percent (50%)of which is owned by the person. Any contribution by a business entity more than fifty percent (50%) of which is owned by such business entity is also attributable to said person. B. A contribution by an employee over whom the person exercises control as a supervisor or as an owner of-the business entity for which the employee works, where the contribution was coerced by the person or made at his or her instigation from monies given or promised to the employee as a gift, bonus or other form of reimbursement for the contribution. C. A contribution of a spouse or child of the person where the contribution is coerced by the person or made from monies given or promised by the person in instigation of the contribution. 41- W273-1= 57 JRG:-%7S:glk 03=94 12.06.250 Certain Contributions by Business Entities Prohibited. In applying the limitations set forth in this Chapter to the contributions of business entities, the following additional rules shall apply: A. Where two or more business entities have any owners, shareholders or partners in common and the total percentage of ownership by all such shareholders or partners in common is more than fifty percent (50°x) of each such business entity, the total contributions by all such business entities shall not exceed the applicable campaign limitation. B. Where one business entity owns more than fifty percent (50%) of one or more other business entities, the total contributions of all such business entities shall not exceed the applicable campaign limitation. 12.06.260 Construction with Political Reform Act. This Chapter is intended to be more stringent that the Political Reform Act. It differs from that Act in many particulars. To the extent that the limitations and requirements imposed by this Chapter are different from those set forth in the regulations of the Fair Political Practices Commission, such different limitations and requirements shall be appried and interpreted so as to be no less stringent than those regulations. PART 3 CAMPAIGN CONTRIBUTION 12.06.310 Intent and Purpose. It is the intent of the City Council of the City of San Jose in enacting this Chapter to place realistic and enforceable limits on the amount individuals and independent committees may contribute to political campaigns in municipal office elections for the purpose of preventing the perception by the public that campaign contributors exercise undue or improper influence over elected officials. In order to achieve this purpose it is -9- JRG:NSgIk 03x22/94 not necessary to, nor is it the City Council's intent to impose limitations on individuals and committees whose sole objective is the passage or defeat of ballot measures. 12.06.320 Contribution Limitations to City Council Candidates. No person, other than the candidate in aid of himself or herself, shall make nor shall any person solicit or accept any contribution in aid of and/or opposition to the nomination or election of a candidate for City Council which will cause the total amount contrikxAed by such person to the candidate and any controlled committee of such candidate to exceed Two Hundred Fifty Dollars ($250) per election, including debt retirement, or to exceed Two Hundred Fifty Dollars ($250), for all purposes, during a single fiscal year. 12.06330 Contribution Limitations to Mayoral Candidates. No person, other than the candidate in aid of himself or herself, shall make nor shall any person solicit or accept any contribution in aid of and/or opposition to the nominaation or election of a candidate for Mayor which will cause the total amount contnbuted by such person to the candidate or any controlled committee of such cand-odate to exceed Five Hundred Dollars ($500) per election, including debt retirement, or to exceed Five Hundred Dollars ($500), for all purposes, during a single fiscal year. 12.06-340 Campaign Contribution Collection Period. No person shall solicit or accept any contributions for any campaign for a future election to a City Council or Mayoral office prior to July 1 of the year preceding the year of the election for that term of office. 12.06_.350 Deposit of Personal Funds into Campaign Bank Accounts. A. A candidate must disclose the source of all personal funds deposited into his or her campaign bank account. If the source of the funds is a loan to the candidate, the name and address of the lender and the terms of the loan must also be c sclosed. -10- IRG:NS--glk 03fn'W B. The information required by Subsection A must be reported, on a form provided by the City Clerk, on or before the date of the next pre-election statement which must be filed after the funds are deposited into the campaign bank account. C. No candidate may deposit personal funds into his or her campaign bank account during the period beginning seven (7) days prior to election day until the day after the election. 1206.360 Exploratory Campaigns. A Whenever a person has filed Statements of Intention in order to explore possible candidacies for both Council and Mayoral offices, no person, other than the candidate in aid of himself or herself, shall make nor shall any person solicit or accept any contribution in aid of such candidacies which will cause the total amount contributed by such person to the controlled committees of such candidate to exceed Five Hundred Dollars ($500.00) during any fiscal year. B. Whenever such candidate determines not to seek the office of Mayor, the campaign funds may be treated as contributions for a Council office campaign to the extent that the total contribution from each contributor does not exceed two hundred and fifty dollars ($250). Any funds in excess of that amount shall be deemed excess contributions and either refunded to the donors or donated to the General Fund of the City, to defray the costs of municipal elections, within thirty (30) days of the filing of nomination papers with the City Clerk 12.06_370 Contribution Limitations to Independent Committees. A. No person shall make nor shall any person accept any contnibution to or on behalf of an independent committee expending funds or making contributions in aid of and/or opposition to the nomination or election of a candidate for City Council or Mayor which will cause the total amount contributed by such person to such independent committee to exceed Five Hundred Dollars ($500) during a single fiscal year. JRG:NS:gft 03/22/94 B. Independent committees contributing to election campaigns in addition to City of San Jose Council or Mayoral election campaigns shall segregate contributions received and contributions or expenditures made for the purpose of influencing such San Jose elections from all other contributions or expenditures. Where an independent committee has segregated such contributions and expenditures for such City elections, contributors to that committee may contribute more than Five Hundred Dollars ($500) so long as no portion of the contribution in excess of Five Hundred Dollars ($500) is used to influence San Jose Council or Mayoral elections. C. This Section is not intended to prohibit or regulate contributions to independent committees to the extent such contributions are used on behalf of or in opposition to candidates for offices other than Mayoral or Council offices of the City of San Jose. 12.06-380 Contributions and Expenditures by Independent Committees. A b idependent committees are "persons"for purposes of the contribution limitations to City Council and Mayoral candidates. Any expenditure by an independent committee in aid of or in opposition to a council or mayoral candidate which is not an "independent expenditure" is deemed to be a contribution to that candidate, subject to the limitations of this Chapter. B. Each independent committee making contributions or independent expenditures in a council or mayoral election which does not participate in elections other than for City offices shall file the reporting statements required by Section 12.06.610. For each expenditure or contribution, the committee shall report what amount or portion was of benefit to a particular candidate. -12- nU73-1s JRG:�T:gik e4-7. 032291 DEBT RETIREMENT AND SPECIAL ELECTIONS 12-06.410 Debt Retirement Contributions Limitations Debt retirement contributions must meet the per election and per fiscal year limitations. No debt retirement contributions may be solicited or accepted from any contributor in excess of the amount which could have been collected from that contributor prior to the election. 12.06.420 Debt Retirement Collection Period Any candidate or controlled committee of the candidate may continue to solicit and accept contributions for the purpose of retiring debt incurred in the campaign for a period of thirty (30) days after the election. No debt retirement contributions may be solicited or accepted by a candidate or controlled committee after this thirty430) day Prod- 12.06.430 Deadline for Debt Retirement. A. A candidate must retire all campaign-related debts, including any loans, within six (6) months after the date of the election. B. A campaign-related debt,including any loan, which remains unpaid more than six (6) months after the election is deemed to have been a campaign contribution which was accepted at the time the debt was incurred. C. Ilt is a violation of this Section to forgive all or part of a loan or debt which is owed to the person by a candidate and which exceeds the applicable contribution imitations. Forgiveness of a loan or debt shall not be deemed to include the failure to collect the loan or debt where there have been substantial attempts, in good faith, to collect the monies owed and such efforts have proved unsuccessful. D. This Section applies only to debts incurred or loans received by a candidate or controlled committee after July 1, 1993. U%Mi: -13- 1RG-NS_Slk 03/22/94 D. This Section applies only to debts incurred or loans received by a candidate or controlled committee after July 1, 1993. 12.06.440 Debt Retirement Documentation A Any candidate who collects debt retirement contributions must provide separate documentation to the City Clerk in the form of a Debt Retirement Statement which demonstrates compliance with the provisions of this Section. Such documentation shall include a listing of each contributor to the campaign and the total contribution for that contributor to date and the date and amount of each separate contribution from that contributor. B. The Debt Retirement Statement shall be filed with the City Clerk in accordance with Section 12.06.610E. 12.06.450 Special Elections. A Whenever a special election for a Council seat and a regularly scheduled election occur in the same fiscal year, any candidate who files a Statement of Intention to be a Candidate with the Fair Political Practices Commission for both elections may solicit and accept Two Hundred Fifty Dollars ($250) for the special election, and Two Hundred Fifty Dollars ($250)for the regularly scheduled election during the same fiscal year. B. Whenever a special election for Mayor and a regularly scheduled election occur in the same fiscal year, any candidate who files a Statement of Intention to be a candidate with the Fair Political Practices Commission for boll elections may solicit and accept Five Hundred Dollars ($500)for the special election and Five. Hundred Dollars ($500) for the regularly scheduled election during the same fiscal year. -14- =U734= IRG:KS_gik 03rnJ% PART 5 OFFICEHOLDER CONTRIBUTIONS 12.06.510 Intent. It is thoe intent of the City Council of the City of San Jose in enacting this Part to place limits on the amount individuals may contribute to officeholders in order to prevent the perception by the public that such contributions may give rise to undue or improper influence over elected officials. 12.06.520 Officeholder Contributions to Councilmembers. A. Officeholder contributions to Councilmembers are limited to Two Hundred Fifty Dollars ($250.00) per fiscal year, in non-election periods only. B. For purposes of the per fiscal year limitation, the officeholder contribution shall be aggregated with all campaign contributions subject to this Chapter. 12.06_530 Officeholder Contributions to the Mayor. A. Officeholder contributions to the Mayor are limited to Five Hundred Dollars ($500) per fiscal year, in non-election periods only. B. For purposes of the per fiscal year limitation, the officeholder contribution shall be aggregated with all campaign contributions subject to this Chapter. 12.06-540 Officeholder Contribution Uses. A. Officeholder contributions are not campaign contributions for purposes of this Chapter. They are solely intended to be used to facilitate the performance of the incumbent officeholder. Any use for campaign purposes is prohibited. B. Officeholder funds are to be used exclusively for officeholder expenses and constituent services, including but are not limited to, newsletter expenses, =U73-i= JRG:X"&-jIk 03/2294 subscribing to publications, taking constituents to dinner to discuss City business, defraying the cost of trips made in connection with the discharge of official duties and attending community events.. C. Contributions shall not be expended directly for salaries of a Councilmember's or Mayor's office personnel. However, funds may be donated to the City of San Jose and appropriated by the City Council for office personnel. 12.06550 Restrictions on Officeholder Contributions. A. No officeholder or controlled committee of the officeholder may solicit and accept contributions for the purpose of paying officeholder expenses during an election period. B. No expenditures shall be made from contributions already collected in connection with an office during an election period except that nothing herein shall preclude the payment of obligations incurred for services and goods received prior to the election period. C. For purposes of this Part, the election period does not apply to: 1. Officeholders who are ineligible to run for any City office during the election period; and 2. Officeholders who have made a final determination not to run for any City office in the election period and have filed a statement of non-candidacy for City office with the City Clerk Until such statement is filed, no expenditures shall be made from officeholder contributions during the election period. 12.06,.560 Officeholder Disclosure Officeholders contributions and expenditures shall be included as part of its semi- annual filing in accordance with Part 6 of this Chapter. -16- u%273-Ls 51`7 JRG:IS:g1k 03/22:41 Part 6 CAMPAIGN DISCLOSURE 12.06.610 Statements. A. Each candidate and each committee, except committees whose sole purpose is to support or oppose a ballot measure, shall file, as a public record with the City Clerk, cumulative itemized reports at the times specified herein showing the total amounts of contributions received and expenditures made. The required statements may be completed on campaign statement forms required to be filed by the regulations of the Fair Political Practices Commission so long as such forms are completed in sufficient detail to comply with the requirements of this Chapter. Such statements shall contain a declaration by the candidate or committee treasurer that the candidate or committee has neither accepted nor solicited any campaign contribution in excess of the limitations of this Chapter. B. The first and second statements shall be filed at the times prescribed for pre- election statements by the Political Reform Ad. The third pre-election statement shall be filed not later than five days prior to election day at twelve noon of that day. The statement shall cover the period closing seven days prior to election day. C. For the general and primary election, this third pre-election statement is due at twelve noon of the Thursday preceding the election for the period ending on the Tuesday prior to the election. D. Thereafter semi-annual statements shall be filed in the form and at the times required by the regulations of the Fair Political Practice Commission. E. A Debt Retirement Statement (available from the City Clerk) in accordance with Section 12.06.440B shall be filed in conjunction with the Annual Loan Report filed with the Fair Political Practices Commission. U%273-tm -17- IRG:NS:glk 03/2244 12.06.610 Late Contributions. A. Each candidate or committee that makes or receives a late contribution shall report the late contribution to the City Clerk. B. The candidate or committee that makes the late contribution shall report his or her full name and street address and the full name and street address of the person to whom the late contribution has been made, and the date and amount of the late contribution. C. The recipient of the late contribution shall report his or her full name and street address, and the date and amount of the late contribution. The recipient shall also report the full name of the contributor, his or her street address, occupation and the name of his or her employer or if self-employed, the name of the business. D. A late contribution shall be reported by mailgram, telegram or personal delivery within twenty-four hours of the time it is made in the case of the candidate or committee that makes the contribution and within twenty-four hours of the time it is received in the case of the recipient. A late contribution shall be reported on subsequent campaign statements without regard to reports filed pursuant to this Section. E. A late contribution need not be reported nor shall it be deemed accepted if it is not cashed, negotiated or deposited and is returned to the contributor within twenty- four hours of its receipt. F. A report filed pursuant to this section shall be in addition to any other campaign statement required to be filed by this Chapter. 12.06.620 Duties of the City Clerk A A City Clerk shall, upon receipt of the third pre-election statements, five days prior to the election, prepare a report to be published in the moming San Jose Mercury News. The report shall contain the total contributions and expenditures for each U%273-rte -18- r • for IRG:tZ_alk ^,, 03l2ZW of the candidates and for each independent committee. The Clerk shall cause the report to be published two days prior to the election. B. In the event the City Clerk has reason to believe a late contribution has not been reported, the Clerk shall notify the Ethics Board. 12.06-630 Disclosure of Post-Election Payment Agreements A. A candidate or his or her controlled committee must disclose, on a form provided by the City Clerk, any campaign-related agreements entered into by the candidate or controlled committee which provide for post-election payments. Such agreements include, but are not limited to, contingency payment or"bonus" payment plans offered by campaign consultants and agreements with persons who will receive compensation after the election for campaign services performed prior to the election. B. A post-election payment agreement must be reported on or before the filing date of the next pre-election statement which must be filed after the agreement is entered into. PART 7 TRANSFER OF FUNDS 12.06710 Prohibition on Transfer between City Campaigns. The transfer of any City campaign or debt retirement contribution to any other City campaign, debt retirement, or officeholder fund is prohibited. 12.06_720 Transfers to Non-City Campaigns Require Prior Disclosure A No contribution collected for any City campaign or debt retirement fund may be transferred to any non-City campaign fund, unless a written disclosure appeared an all materials printed by the campaign committee during the campaign, which -19- JRG:NS:rlk 03/22/94 informed potential donors that such contributions are subject to being transferred to non-City campaigns, at any time, at the discretion of the candidate. B. The disclosure required by this Section shall consist of the following statement in 14 point type: . Any contribution to this campaign may be transferred, to any other candidate or campaign, not involving a City of San Jose office, at name of the candidate)'s sole discretion. C. This requirement applies to transfers to a candidate's own committee for a non- City office as well as transfers between different candidates. D. This Section does not apply to contributions collected or materials printed, prior to April 6, 1994. 12.06.730 Transfer of City Officeholder Funds. A. The transfer of Officeholder funds to be used for any campaign purpose is prohibited. B. Any Officeholder funds which are not utilized for officeholder purposes must be transferred to the General Fund of the City of San Jose or contributed for charitable purposes. SECTION 2. Chapter 12.16 of Title 12 of the San Jose Municipal Code is amended by the addition of a new section to be numbered, entitled and to read as follows: 12.16.025 Pre-candidacy Contributions No person shall be found in violation of this Chapter for having made, solicited or accepted any contribution in excess of the limits prescribed herein, provided that the excess contribution was made, solicited or accepted at a time when the person was not a canddate for the elective City office subject to the limitation, and within thirty days of his or her becoming a candidate either. 2 U\2�� 0- JRG:NS:Slk 03/22/94 A. The amount of contribution in excess of the prescribed limitation was refunded to the donor; or B. The amount of contribution in excess of the prescribed limitation was donated to the General Fund of the City, earmarked to defray the costs of municipal elections. PASSED FOR PUBLICATION this 22nd day of March , 1994, by the following vote: AYES: ALVARADO. BEALL. COLE. FERNANDES. FISCALINI. HEAD, JOHNSON. PANDOR I. POWERS; HAMMER NOES: NONE ABSENT: SH I RAKAWA ATTEST: SUSAN HAMMER, Mayor ti,YA J A.-*w —v PATRICIA L. O'HEARN, City Clerk F 21- 0%273-Ire