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REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JUNE 21, 2016 TITLE: PROPOSED ORDINANCE TO ADD SECTION 2 -111 TO THE SANTA ANA MUNICIPAL CODE REQUIRING MAYOR AND COUNCIL MEMBER DISQUALIFICATIONS AFTER RECEIVING A LEGAL DEFENSE FUND CONTRIBUTION CITY MANA RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 96' Reading ❑ Ordinance on 2nd Reading ® Implementing Resolution ❑ Set Public Hearing For,_ CONTINUED TO Consider proposed ordinance to add Section 2 -111 to the Santa Ana Municipal Code requiring Mayor and Counciimember disqualification after receiving a contribution in the amount of $250 or more to a Legal Defense Fund, In California, the Political Reform Act' (PRA) Is the primary state law source of campaign finance and disclosure laws, While the PRA regulates the disclosure of campaign contributions and expenditures during elections, It does not establish campaign contribution limits for local candidates. Like lather cities and counties, and as permitted by the PRA, Santa Ana has adopted its own contribution limits and other restrictions for individuals seeking local Office, 2 Santa Ana's regulations, however, do not extend to legal defense funds, The Political Reform Act permits a local candidate or elected officer to establish a separate fund for legal defense, If the candidate or officer Is subject to one or more civil, criminal, or administrative proceedings arising directly out of the conduct of an election campaign, the electoral process, or the performance of the officer's governmental duties. Contributions raised for legal defense must be held in a separate bank account, and funds raised for legal defense may be spent "only to defray attorney's fees and other related legal costs," Gov, 1. Codined at Government Code sections 81000-91014, the PRA also sets ethics standards and conflict -cf- interest rules for state and local government officials, regulates lobbying activity, and establishes gift and honoraria limits. 2 Under the PRA, cities retain authority to impose such limits, Gov. Code § $5703(a) ("Nothing In this act shall nullify contribution limitations or prohibitions of any local Jurisdiction that apply to elections for local elective office, except that these limitations and prohibitions may not conflict with Section 95312. "). Sea also Elections Code § 10202 ( "A city may, by ordinance or resolution, limit campaign contributions In municipal elections. ") 50B -1