Sonoma Municipal Code Ch. 2.02 Campaign Finance Regulations

Under the authority granted to the city council by Government Code Section 85702.5, the city council hereby finds that it is in the public interest to place realistic and enforceable limits on the amounts which may be contributed to political campaigns in municipal elections while ensuring democratic accountability.

To the extent not specifically provided in this chapter, the Political Reform Act of 1974 shall govern campaign regulations in municipal elections, as that Act may be amended from time to time. (Ord. 09-2022 § 2, 2022).

A. “Candidate” means any individual who is a candidate for a council member office in a city election.

B. “Indebted former candidate” means any individual who was a candidate at any city election and who has campaign debt remaining from such election after expiration of the election cycle for the office of which they were a candidate.

C. “Election cycle” means the applicable period as set forth in SMC 2.02.040.

D. “Person” means an individual, proprietorship, firm, partnership, joint venture, syndicate, business trust, company, corporation, limited liability company, association, committee, and any other organization or group of persons acting in concert.

E. “City election” means any general election or special election, but not a recall election.

F. Unless expressly defined in this chapter, or the contrary is stated or clearly appears from the context, words and phrases in this chapter shall have the same definition and meaning as when they are used in the Political Reform Act of 1974, as that Act may be amended from time to time. (Ord. 09-2022 § 2, 2022).

A. No candidate shall solicit or accept any contribution that will cause the total contributions to that candidate from any person to exceed $500.00 during any city election cycle. The receipt of any contribution which would cause the total amount of contributions to a candidate from a single person to exceed $500.00 shall prompt the return of any such excess to the donor. The provisions of this section shall not apply to contributions by a candidate of their own funds to their own controlled committee. Contributions by the spouse of a candidate from such spouse’s separate property shall be subject to the contribution limits.

B. No controlled committee of a candidate, or a committee formed primarily to support or oppose a candidate being voted upon in the general election, shall solicit or accept any contributions that will cause the total contributions to that committee from any person to exceed $500.00 during any city election. The receipt of any contribution which would cause the total amount of contributions to such a committee from a single person to exceed $500.00 shall prompt the return of any such excess to the donor.

C. No person shall make, and no council member or indebted former candidate or treasurer of any controlled committee of any council member or indebted former candidate shall solicit or accept, any contributions for the purpose of retiring outstanding debt from a prior city election which would cause the total amount contributed by such person to such council member or indebted former candidate or to their controlled committee to exceed $500.00 for the election in which the outstanding debt was incurred, regardless of when the contribution(s) is made or received.

D. A contribution shall not be considered received or accepted if it is not negotiated, deposited, or utilized and, in addition, is returned to the contributing person within 14 days of receipt.

E. The city clerk shall adjust the contribution limitations in subsections (A) through (C) of this section in January of every odd-numbered year to reflect any increase or decrease in the Consumer Price Index. Those adjustments shall be rounded to the nearest $10.00. (Ord. 09-2022 § 2, 2022).

A. General Elections. For purposes of any general election for city council, the term “election cycle” as used in this chapter shall mean the period commencing on January 1st of the year following a year in which a city council election is held and ending on December 31st of the year in which the next succeeding election is held for that office.

B. Special Elections. For purposes of any special election for city council, the term “election cycle” as used in this chapter shall mean the period commencing on the date a special election is called by the city council and ending on the thirtieth day following said special election.

C. Recall Elections. This chapter shall not apply to any recall election for city council.

D. Campaign Debt. Nothing in this chapter shall prohibit indebted former candidates and/or their controlled campaign committee from soliciting and receiving funds to pay off their campaign debt in accordance with the provisions of this chapter after the end of the election cycles defined above. (Ord. 09-2022 § 2, 2022).

The contributions of any person whose contributions are directed and controlled by another person shall be aggregated with those of the controlling person for purposes of the contribution limits. Contributions by a married person shall be treated as the separate contributions of such person and shall not be aggregated with any contributions of the spouse of such person. Contributions by children under the age of 18 years shall be treated as contributions by their parent(s) or legal guardian(s); one-half of such contribution shall be attributed to each parent or guardian unless only one parent or legal guardian has sole custody of such child in which case any such contributions shall be attributed solely to the custodial parent or guardian. (Ord. 09-2022 § 2, 2022).

A. A loan shall be considered a contribution from the maker and the guarantor of the loan and shall be subject to the contribution limitations of this chapter.

B. The proceeds of a loan made to a candidate by a commercial lending institution in the regular course of business on the same terms available to members of the public shall not be subject to the contribution limitations of this chapter if the loan is made directly to the candidate. The guarantors of such a loan shall remain subject to the contribution limits of this chapter.

C. Extensions of credit (other than loans pursuant to subsection (B) of this section) for a period of more than 30 days are subject to the contribution limitations of this chapter.

1. An “extension of credit” means the provision of goods or services for which payment in full is not received. An extension of credit is deemed to begin by the earlier of two dates:

a. Fifteen days after the date specified on the invoice for payment; or

b. Forty-five days from the date the goods or services were delivered.

2. “Payment in full” means payment of not less than fair market value for the goods or services provided.

3. If all of the following criteria are satisfied by a provider or vendor of goods or services, it shall be a complete defense for the provider or vendor of the goods or services in any enforcement action initiated by the city:

a. The credit arrangement was recorded in a written instrument;

b. It is a primary business of the provider or vendor of goods or services to provide similar goods or services;

c. The provider or vendor of goods or services provided the goods or services in the ordinary course of business and on the same terms and conditions offered to customers generally;

d. The provider or vendor of goods or services did not have actual knowledge that the candidate or committee would not be able to pay within the time limit specified;

e. The provider or vendor of goods or services made reasonable efforts to collect the full amount of the payment owed within 120 days of the date specified;

f. The provider or vendor of goods or services entered into the agreement with the intent that the candidate or committee would be required to pay within the time limit specified; and

g. The provider or vendor of goods or services did not extend any additional credit to the candidate or their controlled committee when the candidate or their controlled committee already had an extension of credit for more than 30 days outstanding with the same provider or vendor of goods or services.

D. This section shall apply only to loans and extensions of credit used or intended for use for campaign purposes or which are otherwise connected with the holding of public office. (Ord. 09-2022 § 2, 2022).

A. Any council member, or indebted former candidate, or any controlled committee of any such officer or candidate, accepting any contribution(s) for the purpose of retiring outstanding debt from a prior city election are required by state law to report such contributions on Schedule A of Fair Political Practices Commission Form 460, or any successor form thereto, and shall, at the time required for the reporting of such contributions on Schedule A and in addition to any other reporting requirements under state law, clearly designate on said Schedule A (1) which contributions were received for the purpose of retiring outstanding debt and (2) for which prior city election such contributions were received.

B. Any contribution accepted for the purpose of retiring outstanding debt from a prior city election shall be applied to reduce or retire said outstanding debt in the same reporting period in which such contribution was accepted. The application of any contribution to retire outstanding debt from a prior city election (i.e., repayment of outstanding loans and payment of accrued expenses) shall be itemized and identified on the appropriate schedules and on the summary page of Form 460, or any successor form thereto, provided by the Fair Political Practices Commission.

C. If a council member, or indebted former candidate, or a controlled committee of any such officer or candidate, receives contributions for the purpose of retiring outstanding debt from a prior city election and the amount of the contributions exceeds the amount of the debt, the excess funds may be used for any other campaign or officeholder expense and shall not be subject to the aggregation requirements set forth in this chapter in the election cycle in which the excess funds are expended. (Ord. 09-2022 § 2, 2022).

A. A candidate shall have no more than one controlled committee, and such controlled committee shall have only one bank account out of which all qualified campaign and officeholder expenses related to that office shall be made.

B. This section does not prevent a candidate from establishing another controlled committee solely for the purpose of running for a state, federal, county, or other elective office or for opposing his or her recall. (Ord. 09-2022 § 2, 2022).

A. No Criminal Penalties. Notwithstanding any other provision of the city of Sonoma Municipal Code, any violation of any provision of this chapter shall be enforceable solely as provided in this section.

B. Civil Liability. Any person who fails to comply with any provision or requirement of this chapter shall be strictly liable to the city of Sonoma in a sum not to exceed the following amount for each such violation:

1. For the making or accepting of any contribution in excess of the applicable contribution limits specified in this chapter, a sum equal to three times the amount by which the contribution exceeds the applicable contribution limit, or the sum of $500.00, whichever is greater, for each violation.

2. For any other violation of this chapter, the sum of $500.00 for each violation.

C. Right to Cure Unknowing Violation. In the event a candidate accepts a contribution and then becomes aware it is in violation of the contribution limit, that violation by the candidate may be excused if the candidate returns the contribution or contributes it to the city general fund within 14 days of becoming aware of the violation.

D. Debt Owing to City. Any amount due from any person pursuant to this section shall be a debt due and owing upon demand to the general fund of the city of Sonoma.

E. In addition to the sums provided for above, any person who is found liable for a violation of this chapter shall also be liable for the reasonable attorneys’ fees and costs incurred by the plaintiff in any civil proceeding brought to enforce the provisions hereof. (Ord. 09-2022 § 2, 2022).