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SRC 06/01/2016 ORDINANCE NO. NS -XXX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING CHAPTER 2 OF THE SANTA ANA MUNICIPAL CODE BY ADDING A NEW SECTION 2- 111 REQUIRING MAYOR AND COUNCIL MEMBER DISQUALIFICATIONS AFTER RECEIVING A LEGAL DEFENSE FUND CONTRIBUTION THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. That the California 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. B. That cities have explicit authority to impose limitations, restrictions and /or create consequences in relation to contributions to any separate legal defense fund established by a local candidate or office holder. Section 2. Chapter 2 of the Santa Ana Municipal Code is hereby amended by adding a new Section 2 -111 to read as follows: "Sec. 2.111. - Disqualification due to legal defense fund contribution Neither the mayor, nor any councilmember, shall participate in, or use his or her official position to influence a decision to be made by the City Manager or the City Council if it is reasonably foreseeable that the decision will have a material financial effect, apart from its effect on the public generally or a significant portion thereof, on a recent legal defense fund contributor. As used herein, "legal defense fund contributor" means any individual or entity who or which has made a legal defense fund contribution totaling two hundred fifty dollars ($250.00) or more to the mayor or a councilmember or to any campaign committee controlled by the mayor or the councilmember in the twelve -month period immediately preceding the date of the decision. For purposes of this Section 2 -111 any individual who has more than a ten percent (10 %) equity or revenue interest in the contributing entity, or anyone who is a trustee, director, partner or officer of the contributing entity, shall also be deemed a legal defense fund contributor. " Section 3. If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any 55394.00000\29011396.1 1 11 A -3 Exhibit 1