Chapter 12.06 — MUNICIPAL CAMPAIGNS AND OFFICEHOLDER ACCOUNTS

Editor's note— Ord. 30687, § 1, adopted Nov. 30, 2021, changed the title of Chapter 12.06 from "Municipal Campaign And Officeholder Contributions" to "Municipal Campaigns and Officeholder Accounts," as set out herein.

Part 1 - DEFINITIONS

The following definitions used in this chapter shall have the meanings set forth below. Except as otherwise provided here, the terms and provisions of this chapter shall be interpreted in accordance with the applicable definitions and provisions of the Political Reform Act of 1974, as amended (Government Code Section 81000 et seq.) and the regulations of the California Fair Political Practices Commission, as amended.

(Ords. 24466, 24577, 25257, 26440, 27291, 29642, 30768.)

"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.

(Ords. 24499, 24577, 25257, 26440, 29642, 30768.)

"Candidate" shall mean an individual who:

A.

Is listed on the ballot; or

B.

Has qualified to have write-in votes on their behalf counted by election officials for nomination or election to any elective city office; or

C.

Has given their consent for any other person to receive a contribution or make an expenditure with the intention of bringing about their nomination for or election to any elective city office, whether or not the specific elective office for which they will seek nomination or election is known at the time the contribution is received or the expenditure is made and whether or not they have announced their candidacy or filed a declaration of candidacy; or

D.

Has filed a form "statement of intention" to be a candidate with the city clerk; or

E.

An elected officer, including any elected officer who is the subject of a recall; or

F.

Retains candidate status under subsections A, B, C, D and E until their filing obligations terminate under Government Code Section 84214 of the Political Reform Act.

(Ords. 24499, 24577, 25257, 25525, 26440, 28213, 29642, 30768, 30913, 30926.)

"Committee" means any person or combination of persons who, directly or indirectly, does any of the following:

A.

Receives contributions totaling two thousand dollars or more in a calendar year; or

B.

Makes independent expenditures totaling one thousand dollars or more in a calendar year; or

C.

Makes contributions totaling ten thousand dollars or more in a calendar year to or at the behest of a candidate or controlled committee.

A person or combination of persons that becomes a committee will retain its status as a committee until such time as that status is terminated pursuant to California Government Code Section 84214.

(Ords. 24499, 24577, 25257, 25447, 26440, 28624, 29642, 29765, 30768.)

A.

"Contribution" means:

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, or it is clear from the surrounding circumstances that the contribution is not made for political purposes.

An expenditure benefiting a candidate or committee made at the behest of a candidate, candidate controlled 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.

B.

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 any tangible thing of value.

C.

The payment of salary, reimbursement for personal services or other compensation by an employer or an employee who spends any of his or her compensated time rendering services for political purposes related to a City candidate or committee is a contribution or an expenditure if:

The employee renders services at the request or direction of the employer; or

The employee, with the consent of the employer, is relieved of any normal working responsibilities related to his or her employment in order to render the personal services, unless the employee engages in political activity on bona fide, although compensable, vacation time or pursuant to a uniform policy allowing employees to engage in political activity.

D.

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. In addition, personal or professional services donated to a campaign by an individual are not deemed to be contributions for purposes of this Chapter. Any other payment or service not defined as a contribution in this Section is also not deemed to be a contribution for purposes of this Chapter.

E.

Pro bono legal services shall be allowed and made pursuant to the Political Reform Act, California Government Code Section 81000 et seq., as amended.

F.

Any communication, other than a communication to members of an organization, made at the behest of a candidate, is a contribution to that candidate and is subject to the limits and prohibitions specified in Chapter 12.06 of the San José Municipal Code.

(Ords. 24499, 24577, 25257, 26440, 28280, 28624, 28985, 29642, 29793, 30687, 30768.)

"Controlled committee" shall mean a committee which is controlled directly or indirectly by a candidate or which acts jointly with a candidate or controlled committee in connection with the making of expenditures. A candidate controls a committee if such candidate, his or her agent, or any other committee such candidate controls, has a significant influence on the actions or decisions of the committee.

(Ords. 24499, 24577, 25257, 26440, 29642, 30768.)

"Election" and "city election" mean any regular municipal or special municipal election in the city.

(Ords. 24499, 24577, 25257, 26440, 28624, 29642, 30768.)

"Fair political practices commission" is the body charged with administering the Political Reform Act and adopting implementing regulations.

(Ords. 24499, 24577, 25257, 26440, 29642, 30768.)

"Foreign Entity" means a person or entity for which at least one of the following conditions is met:

A.

Is a government of a foreign country; a foreign political party; a partnership, association, corporation, organization or other combination of persons organized under the laws of, or having its principal place of business in, a foreign country; or

B.

Is an individual outside of the United States who is not a citizen of the United States or a national of the United States, and who is not lawfully admitted for permanent residence.

(30993.)

"Foreign-Influenced Business Entity" means any Business Entity for which at least one of the following conditions is met:

A.

One percent (1%) or more of the total ownership interests of the Business Entity are held, owned, controlled, or otherwise directly or indirectly beneficially owned by a single Foreign Owner;

B.

Five percent (5%) or more of the total ownership interests of the Business Entity are held, owned, controlled, or otherwise directly or indirectly beneficially owned by two (2) or more Foreign Owners in aggregate;

C.

A Foreign Owner directly or indirectly participates in the Business Entity's decisions to engage in political activities in the United States; or

D.

The Business Entity is directly or indirectly controlled by a Business Entity meeting at least one of the conditions in subparagraphs A, B, or C.

(30993.)

"Foreign Owner" means (1) a Foreign Entity; or (2) a Business Entity in which a Foreign Entity holds, owns, controls, or otherwise directly or indirectly acquired beneficial ownership of equity or voting shares in an

amount that is equal to or greater than fifty percent (50%) of the total equity or outstanding voting shares.

(30993.)

"Independent committee" shall mean all committees other than controlled committees.

(Ords. 24499, 24577, 25257, 26440, 29642, 30768.)

"Independent expenditure" means an expenditure made by any person in connection with a communication which expressly advocates the election or defeat of a clearly identified candidate, or the qualification, passage or defeat of a clearly identified measure, or taken as a whole and in context, unambiguously urges a particular result in an election, but which is not made to or at the behest of the affected candidate or his or her controlled committee.

(Ords. 24499, 24577, 25257, 26440, 27291, 28624, 29642, 30768.)

Editor's note— Ord. 29642, § 4, adopted Nov. 17, 2015, repealed § 12.06.140, which pertained to late contribution and derived from Ord. 28985.

Editor's note— Ord. 28213, § 1, adopted Jan. 8, 2008, repealed § 12.06.150, which pertained to officeholder contributions.

"Person," for purposes of this chapter, shall include an individual, business entity, foundation, organization, committee or association, nonprofit corporation, and any other organization or group of people acting in concert.

(Ords. 24499, 24577, 25257, 26440, 29642, 30768.)

"Debt Retirement Contribution" is a campaign contribution accepted within sixty days after the date of the election that may only be used by any council or mayoral candidate and any controlled committee of a council or mayoral candidate to retire campaign related debt and liabilities.

(Ord. 30768.)

Editor's note— Ord. 30687, § 3, adopted Nov. 30, 2021, repealed § 12.06.170, which pertained to the Political Reform Act and derived from Ords. 24499, 24577, 25257, 26440, 28624, and 29642.

"Election Contest or Recount contribution" is a campaign contribution accepted within one hundred eighty days from the date of the election that may only be used by any council or mayoral candidate and any controlled committee of a council or mayoral candidate for attorney's fees and other costs in connection with an election contest or recount resulting from the election that commenced the one hundred eighty day Election Contest or Recount contribution period.

(Ord. 30768.)

Editor's note— Ord. 30768, § 1, adopted May 17, 2022, repealed the former § 12.06.175, and enacted a new § 12.06.175 as set out herein. The former § 12.06.175 pertained to post-election contribution and derived from Ord. 29793.

The form "statement of intention" is a written statement, filed with city clerk in accordance with Government Code Section 85200 and regulations thereunder, declaring intention to be a candidate for a specific elective city office.

(Ords. 24499, 24577, 25257, 25525, 26440, 28213, 29642, 30768.)