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					       los angeles
       CITY ETHICS COMMISSION
                ...preserving the public trust.



            candidate guide
            running for city office
                                                  Election 2011
                                                   Primary: March 8
                                                    General: May 17




                                       City of LA Candidates




“committed to supporting and equipping an informed citizenry…”
                                              CONTENTS

                                   Important Dates:
                      Campaign Disclosure Filing Schedule - page 14
                       Matching Funds Program Schedule - page 46

INTRODUCTION ....................................................................................................... 4
CONTACT AGENCIES ................................................................................................ 5
BECOMING A CANDIDATE ......................................................................................... 6
  When Contributions May Be Received....................................................................... 6
  Organizing Your Campaign ..................................................................................... 6
  Candidate Filing Week (November 8 – 13, 2010). ...................................................... 8
  Important Candidate Information .......................................................................... 10
  Campaign Disclosure Requirements ....................................................................... 11
  Campaign Bank Accounts ..................................................................................... 15
CONTRIBUTION INFORMATION ................................................................................ 17
 What is a Contribution? ........................................................................................ 17
  Contribution Limits .............................................................................................. 19
  Required Contribution Information ......................................................................... 21
  When Contributions are Aggregated ....................................................................... 23
  Record Keeping Responsibilities of Fundraisers and Treasurers................................... 26
  Board and Commission Member Fundraising Activity ................................................ 26
  The State’s Late Contribution Reporting.................................................................. 26
  Avoid Penalties: Maintain the Required Documentation for your Records ..................... 27
  Returned Contributions ........................................................................................ 28
EXPENDITURE INFORMATION .................................................................................. 29
  What is an Expenditure?....................................................................................... 29
  How to Make an Expenditure................................................................................. 29
  How to Reimburse Expenses ................................................................................. 31
  Timely Reporting of Unpaid Bills (“Accrued Expenses”) ............................................. 32
COMMUNICATIONS ................................................................................................ 34
 Campaign Communications................................................................................... 34
NOTIFICATION REQUIREMENTS ............................................................................... 36
 Requirements for All Candidates ............................................................................ 36
  WHEN DO I NOTIFY? (QUICK REFERENCE).............................................................. 37
COMMITTEE CHECKLIST.......................................................................................... 38
 Have You Done These Things?............................................................................... 38
  CHECKLIST FOR GOOD RECORD-KEEPING .............................................................. 39
PUBLIC MATCHING FUNDS ...................................................................................... 40



                                                                                                                     2
  The Public Matching Funds Program ....................................................................... 40
  KEY DATES FOR MATCHING FUNDS PROGRAM......................................................... 46
  Matching Funds System & Campaign Spending Limits ............................................... 47
AFTER THE ELECTION............................................................................................. 49
  What to Do When the Election is Over .................................................................... 49
IMPORTANT CAMPAIGN INFORMATION...................................................................... 52
  Use of Public Resources for Campaign Activity is Prohibited ....................................... 52
  Enforcement of Campaign Violations ...................................................................... 53
  Audits................................................................................................................ 54
APPENDICES ......................................................................................................... 56


               Reminder About Mandatory Candidate and Treasurer Training
All candidates and their treasurers must complete ONE mandatory training session
conducted by the City Ethics Commission. (LAMC § 49.7.9). We recommend that
committees strongly encourage their fundraisers and campaign consultants to complete a
session as well. Candidate committees that have filed a "Declaration of Intent to Solicit and
Receive Contributions” will be notified of training dates. Others should contact the
Commission or visit our web site for information.

                                           2011 Election Schedule

Please contact the City Clerk, Elections Division, for a copy of the general information
pamphlet for candidates in the 2011 election. This guide includes deadlines for residency
and filing your Declaration of Intention to Become a Candidate, requirements during
Candidate Filing Week, and other important information related to filing your nominating
petitions and getting your name on the ballot.




                                                                                                                         3
                                  INTRODUCTION
In April of 1985, Los Angeles City voters enacted limits on contributions to City campaigns,
which became the first in a series of political campaign reform measures designed to
encourage broader participation in the political process and help restore public confidence in
government. In June of 1990, the voters approved an amendment to the City Charter,
which created the Los Angeles City Ethics Commission, strengthened City campaign finance
laws, and funded the Public Matching Funds Program for City elections.

The City Ethics Commission ("CEC") has prepared this information guide, for candidates
seeking elective City offices in the 2009 municipal elections, as a convenient summary of
basic campaign finance information. This guide is not exhaustive, and we urge you to
carefully review the following laws pertaining to campaign finance. It is your
responsibility to comply with their provisions:

   •   Political Reform Act of 1974 (“PRA”):
           o    California Government Code (“Govt. Code”) § 81000 et seq.; and
           o Title 2, California Code of Regulations (“2 CCR”) § 18109 et seq.

   •   Los Angeles City Charter (“Charter”) §§ 470-471.

   •   Los Angeles Municipal Code (“LAMC”) §§ 49.7.1 et seq.

   •   LAMC §§ 49.5.5 and 48.05.

   •   Los Angeles Administrative Code (“LAAC”) Section 24.5.

Applicable City laws are available in the appendices and on the CEC’s web site.
CEC staff members are available during regular business hours to answer questions
concerning City laws or your campaign for elective City office.

While the CEC administers and enforces City campaign finance laws, the Fair
Political Practices Commission (“FPPC”) administers and enforces state law. The
PRA and corresponding regulations are available on the FPPC’s web site at
www.fppc.ca.gov. Candidates and committees may find the FPPC's Campaign Disclosure
Manual 2 very helpful (you may request a copy from the FPPC). The Office of the City
Attorney also provides advice regarding state law.

Qualifying for the Ballot

Please contact the Office of the City Clerk’s Election Division for election information about
qualifying for the ballot, such as obtaining and filing a Declaration of Intention to Become a
Candidate, obtaining nominating petitions, submitting filing fees, and understanding
residency requirements. The CEC cannot advise you on these matters.




                                                                                                 4
                               CONTACT AGENCIES

Los Angeles City Ethics Commission
200 N. Spring St.
City Hall 24th Floor, Suite 2410
Los Angeles, CA 90012
(213) 978-1960
TTY (213) 978-2609
Fax: (213) 978-1988
Whistleblower Hotline: (800) 824-4825
ethics.commission@lacity.org
http://ethics.lacity.org

Los Angeles City Attorney's Office
800 City Hall East
200 N. Main Street
Los Angeles, CA 90012
(213) 978-7100

Los Angeles City Clerk
Election Division*
Piper Technical Center
555 Ramirez Street, Space 300
Los Angeles, CA 90012
(213) 978-0444
TTY (213) 978-0362
Fax: (213) 978-0376
www.cityclerk.lacity.org/election

California Fair Political Practices Commission
428 J Street, Ste 620
Sacramento, CA 95814
Toll Free: (866) ASK-FPPC (275-3772)
Fax: (916) 322-0886
www.fppc.ca.gov

*Note: For election information about how to qualify for the ballot—such as filing a
Declaration of Intention to Become a Candidate, obtaining nominating petitions, submitting
filing fees, and understanding residency requirements—contact the City Clerk’s Election
Division.




                                                                                             5
                               CHAPTER 1
                          BECOMING A CANDIDATE
What follows is an outline of the steps necessary to begin your campaign. You are required
to file various City and state forms, in part, to inform the public that you are establishing
your campaign and to provide them with information about your campaign activities. A
checklist of candidate filings is provided at the end of this chapter (see page 16) for your
reference. We urge you to read through this section in its entirety as many of the forms
described below must be filed concurrently.


When Contributions May Be Received
("The Fundraising Window")

Candidates running for City Council in the 2011 municipal election may begin fundraising on
September 8, 2009. City law permits candidates to continue to fundraise up to nine months
after the date of the election but only for the purpose of retiring campaign debt. LAMC §
49.7.7.


Organizing Your Campaign

In order to solicit and receive contributions and make expenditures on behalf of your
candidacy, you need to register your campaign with the Secretary of State and the CEC,
open a bank account in the City of Los Angeles, and form a campaign committee. The type
of committee you will be forming is called a "candidate controlled recipient committee"
because it is under the control of you, the candidate. Your committee must be formed
within 10 days of the date you receive $1,000 in contributions for your campaign (this
includes your use of personal funds as a candidate). If you have not received—or anticipate
that you will not receive—$1,000 or more in contributions during a calendar year, please
contact the CEC for information about your filing obligations.

A. Register your campaign with the Secretary of State and CEC

   1. Before you solicit or accept contributions or make expenditures, or use your personal
      funds in your campaign, you must file an original Candidate Intention Statement
      (California Form 501) with the CEC.
   2. Before you solicit or accept contributions, you must file the following documents
      concurrently with the CEC:

          •   Declaration of Intent to Solicit and Receive Contributions (CEC Form 12)
              Only contributions received pursuant to this Declaration may be used for the
              election.
          •   Statement of Understanding (CEC Form 13)
              This statement confirms that you and your treasurer have received, read, and
              understood the campaign finance provisions of City law.
          •   Notification of Other Controlled Committees
              If you have other controlled committees, you must notify the CEC in writing of
              these committees, the account numbers, and the names and addresses of the
              financial institutions at which the accounts are held. If other committees are
              subsequently opened, the candidate must notify the CEC on the next regular



                                                                                            6
              business day.)

Note: The above documents must be filed again if you are certified for the general (runoff)
election.

B. Open a bank account within the City of Los Angeles

City law requires that your campaign bank account be used solely for campaign purposes
and be located at a financial institution in the City of Los Angeles. Within 10 calendar days
of opening a campaign bank account, you must file a Controlled Committee Bank Account
Information form (CEC Form 14) with the CEC and an amended Statement of Organization
(California Form 410) with the Secretary of State and the CEC. Charter § 470(g). (See
page 15 for additional bank account information.)

You may open the bank account with your personal funds. If you choose to do this, the
committee must report this use of your personal funds as a contribution or loan to your
campaign. Govt. Code §§ 82015 and 84216; 2 CCR § 18215. For more information about
limits on the use and repayment of personal funds that may apply if you participate in the
Public Matching Funds Program, see pages 19, 21, and 40.

C. Form a campaign recipient committee

You qualify as a committee once you have raised $1,000 within a calendar year. Within 10
days of receiving $1,000 in contributions (including any of your personal funds), you must
file the original and one copy of a Statement of Organization (California Form 410) with the
Secretary of State, and file one copy with the CEC. After receiving your filing, the Secretary
of State will issue your campaign a committee identification number. If you wish, you may
file this form before qualifying as a committee so that you may be issued a committee
identification number. However, in that case, you must amend the original Statement of
Organization within 10 calendar days of qualifying as a committee and provide the date you
qualified. Be sure to include your committee's bank account information on this form.

You and your campaign committee are required by law to file periodic campaign disclosure
statements until your committee officially terminates. For more information about these
disclosure reports, see "Campaign Disclosure Requirements" on page 11.




                                                                                                7
Candidate Filing Week (November 8 – 13, 2010).

During the period commonly referred to as “candidate filing week”—November 8 - 13, 2010
(until noon on Saturday)—candidates are required to file several forms, outlined below, with
the City Clerk's Election Division and the CEC to establish their candidacies, get their names
on the ballot, and accept or reject matching funds.

While the CEC administers and enforces the City's campaign finance laws, the City's election
laws are administered by the City Clerk's Election Division. We urge you to review the
Clerk's "General Information for Candidates" brochure, and to contact that office at (213)
978-0444 for information about ballot- and election-related matters such as nominating
petitions, filing fees and residency requirements.

A. Declare your intent to be on the ballot

The first step toward getting your name on the ballot is to file a Declaration of Intention to
Become a Candidate with the Office of the City Clerk's Election Division. This Declaration
must be filed during candidate filing week. The City Clerk's Office will not issue nominating
petitions to you unless you have properly filed this form. You are strongly advised to
contact the City Clerk's Election Division at (213) 978-0444 for information about qualifying
to appear on the City ballot.

B. Disclose your financial interests

Candidates must file a Statement of Economic Interests (Form 700) with the CEC no later
than the last day to file the Declaration of Intention to Become a Candidate during
candidate filing week (Saturday, November 13, at 12:00 pm). This form itemizes financial
interests that you hold as of the date you declare your candidacy, as well as your sources of
income during the 12 months before filing the form. Govt. Code § 87201. Form 700 is
available from the CEC or from the FPPC’s web site.

C. File your Nominating Petitions

To qualify for the ballot, you must obtain a required number of signatures from qualified,
registered voters. Nominating petitions are used for this purpose and will be distributed by
and filed with the City Clerk Elections Division. Specific deadlines for receipt of the signed
petitions apply. For information about obtaining your nominating petitions, filing deadlines,
and fees, refer to the City Clerk's brochure, "General Information for Candidates."

Note: The City Clerk will not issue nominating petitions to any candidate who has failed to
file a Statement of Economic Interests by the last day of candidate filing week (November
13, 2010). If you have questions about how to complete this form, contact the CEC.




                                                                                              8
D. Disclose City-related business, if applicable

Candidates who qualify to appear on the ballot, or who qualify as “write-in” candidates,
must file a Statement of City-Related Business with the CEC within 10 calendar days of
conducting certain business with the City of Los Angeles. City Election Code § 304; LAMC §
49.5.6I. This statement discloses specific transactions or applications you have pending
with the City, and will be provided to you during the candidate filing week.

E. Accept or reject participation in the Public Matching Funds Program

The City will match, up to a certain amount, contributions from individuals to candidates
who opt to participate in the matching funds program. If you choose to participate in this
program, you must meet specific qualification requirements and agree to limit your
spending and the use of your personal funds in your campaign. At the time you file your
Declaration of Intention to Become a Candidate with the City Clerk during candidate filing
week, you must file a Statement of Acceptance or Rejection of Matching Funds (CEC Form
20) with the CEC. This form states whether you agree to participate or decline to
participate in the program. Your decision applies to both the primary and general
(runoff) elections. If you decide not to participate in the program when you
declare your candidacy for the September primary election, you cannot change
your mind and participate in the program in the December general election.

If you declare your intention to participate in the matching funds program, you will have
until November 20, 2010 to change your mind if an opponent in your race declines to
participate in the program. Please note that if you declined to participate in the program at
the time you filed your Statement of Acceptance or Rejection of Matching Funds, you cannot
change your mind and opt into the program at a later date. For more detailed information
about the program, see the Public Matching Funds Program section of this guide beginning
on page 40.

F. Withdrawing Your Candidacy: What must be filed

In the event that you decide to withdraw your candidacy after having filed Form 501 and
Form 410, you will continue to have campaign statement filing obligations until you
terminate your campaign committee. To do this, you must file an original terminating Form
410 with the Secretary of State and submit a copy to the CEC. Note that an additional Form
501 is not required to be filed in order to terminate your candidacy. Additionally, a
Cancellation of the Declaration of Intent to Solicit and Receive Contributions form (CEC
Form 15) and a “terminating” Form 460 Campaign Disclosure Statement must be filed with
the CEC. Completing these steps informs your opponent(s) and the public that your
campaign is no longer active.




                                                                                             9
Important Candidate Information

A. Mandatory Candidate and Treasurer Training

All candidates and their treasurers must complete ONE mandatory training session
conducted by the CEC. LAMC § 49.7.9. Candidates are strongly encouraged to have
their fundraisers and campaign consultants complete a session as well. Candidates
who have filed a Declaration of Intent to Solicit and Receive Contributions will be contacted
to schedule a training session. Others should contact the CEC for more information.

B. State Gift Laws

Once you file your Statement of Organization (Form 410) or Candidate Intention Statement
(Form 501), whichever is earlier, you are prohibited from accepting gifts from any single
source in a calendar year with a total value of more than $420*. Govt. Code § 89503. You
will need to disclose all gifts you receive from one source that are valued individually or
cumulatively at $50 or more when you file your Statement of Economic Interests (Form
700) during candidate filing week (see page 8). If you need information about what
constitutes a "gift," exceptions to the gift law, or how this law applies to you, please contact
the FPPC.

*Please note that the state gift limit of $420 per calendar year is effective through
December 31, 2010. On January 1, 2011 a new limit will go into effect based on changes to
the Consumer Price Index. Please contact the City Ethics Commission at that time for the
updated state gift limit amount.




                                                                                             10
Campaign Disclosure Requirements

The Political Reform Act of 1974 requires candidates for local elective office to disclose to
the public the identities of contributors and the amounts of their contributions, as well as
detailed information about the candidate’s expenditures. Complete and timely disclosure
ensures that campaign information is easily accessible to the public and all candidates for
elective offices. Candidates and their committees are required to file campaign statements
with the CEC at specific intervals to disclose all monetary (including loans) and non-
monetary contributions received; all expenditures (including loans) made; unpaid bills; and
any increases to cash, such as bank interest and dividends received. As noted below, some
candidates are also required to file their campaign statements electronically using the CEC
Campaign Electronic Filing System (CEFS).

A. Periodic Campaign Disclosure Statements

As a City candidate, you are required to file periodic campaign disclosure reports with the
CEC by using Form 460 (Long Form) or Form 470 (Short Form), which are described below.
Read below to determine which form to use. Consult the filing schedule on page 14 for a
listing of filing deadlines. Note that some filing deadlines require documents to be
postmarked by the deadline date, while others specify the date by which the document
must be received by the CEC. State campaign disclosure forms and information manuals
prepared by the FPPC are available through the CEC.

   •   California Form 460 - The Form 460 is used by those controlled committees that
       have received or plan to receive $1,000 or more in contributions or have made or
       plan to make expenditures of $1,000 or more. Detailed instructions are included
       with the form. Additionally, helpful instructions are contained in Campaign
       Disclosure Manual 2, which is published by the FPPC, and is available on its web site
       or through the CEC (see page 5).

       The Form 460 is available from the CEC or from the FPPC’s web site. Make blank
       copies for your files, as you will need to file several statements over the course of
       your campaign. A signed original and one copy of California Form 460 must be filed
       with the CEC according to the filing schedule (see page 14). You may fax your Form
       460 if it is 30 pages or less, AND the required original and copy are sent by first-
       class mail or by guaranteed overnight delivery service within 24 hours of the filing
       deadline.

   •   California Form 470 - The Form 470 is used by candidates who do not have a
       controlled committee and do not anticipate receiving or spending $1,000 or more
       during the calendar year. An original and one copy of the California Form 470 must
       be filed annually with the CEC. Govt. Code § 84206; 2 CCR § 18406. Note: If you
       are required to file a Form 470, the statement should be submitted no later than
       January 31 for the previous calendar year. However, once you raise or spend $1,000
       or more, you must file a Form 470 supplement.




                                                                                           11
B. Mandatory Online Filing of Campaign Disclosure Statements

The CEC's Campaign Electronic Filing System (CEFS) is an Internet-based, interactive
computer program that was developed by the Commission and is available free of charge on
its web site. Online filing is designed to facilitate the filing process, provide candidates with
campaign compliance tools, and provide the public with timely access to campaign finance
information.

When candidates have raised or spent at least $25,000 in connection with their campaigns,
they must begin to file campaign disclosure statements using CEFS in addition to filing
paper copies of statements. Once the $25,000 threshold is met, subsequent statements
due must be filed using CEFS. In addition to late filing penalties that may be imposed for a
late filing of a paper copy, an additional penalty of $25 per day applies after the deadline for
the late filing of the online copy.

Any candidate not required by law to file online may do so voluntarily at any time for the
filing of any statement. LAMC § 49.7.11 D.

For more information and to obtain a user identification and password, please contact the
CEC at (213) 978-1960.

C. How to Amend Your Campaign Disclosure Forms

Sometimes it is necessary for candidates to change the information they provided on their
campaign disclosure statements. For example, you may need to amend your California
Form 460 because you discovered you made an error on your original filing. If you need to
amend your previously filed statement, log in to CEFS, select the time period to amend,
make the necessary changes via data entry or upload an amended file, and submit. Print
and sign two copies of the amended report and file with the CEC.

Failure to file disclosure statements can result in substantial penalties—criminal, civil, and
administrative. Additionally, failure to file on time can result in late filing penalties of up to
$50 per day for all reports required to be filed, depending on the type of disclosure
statement and whether or not it has to be filed as a hardcopy and electronically. There are
no extensions of the filing deadlines.

D. Obtaining Forms

You may obtain hard copies of all campaign-related forms (including Forms 501,
410 and 460) from the CEC. If you prefer, you may also obtain these forms
electronically from:

   •   the CEC’s web site at http://ethics.lacity.org/forms.cfm;
   •   the FPPC’s web site at www.fppc.ca.gov; or
   •   the Secretary of State’s web site at www.ss.ca.gov/prd/campaign_info/
       forms_instructions/compend_camp_forms.htm.

E. Internal Revenue Service Reporting Requirements

Under certain circumstances your campaign committee may have to comply with Internal
Revenue Service (IRS) filing obligations. The IRS no longer requires the following to file
Form 8871, Political Organization Notice of Section 527 Status:




                                                                                                12
   •   A political committee of a state or local candidate;
   •   A state or local committee of a political party;
   •   Any organization required to report to the Federal Election Commission as a political
       committee under the Federal Election Campaign Act of 1971 (2 U.S.C. 431 et seq.);
   •   Any organization that reasonably anticipate its annual gross receipts to always be
       less than $25,000; or
   •   A tax-exempt organization described in section 501(c) that is treated as having
       political organization taxable income under section 527(f)(1).

However, if your committee has any taxable income, such as interests or dividends, you
may have to file Form 1120-POL, U.S. Income Tax Return for Certain Political Organizations.
For more information, please contact the IRS at the Tax Exempt and Government Entities
Customer Account Services. The toll free number is 877-829-5500. Assistance is available
7:00 a.m. to 5:30 p.m. Central Time, Monday through Friday.




                                                                                          13
                              CAMPAIGN DISCLOSURE FILING SCHEDULE
                              2011 City of Los Angeles Municipal Election

      Los Angeles City Ethics Commission ♦ 200 N Spring St, 24th Fl, Los Angeles, CA 90012
                 (213) 978-1960 ♦ Fax (213) 978-1988 ♦TTY (213) 978-2609

                                   Filing for the Primary Election on March 8, 2011
                                                                                            Acceptable Delivery
          Filing Deadline               Type of Statement Period Covered*
                                                                                                 Method
                                                                                          Personal Delivery
         February 1, 2010**                  Semi-Annual           1/1/09 – 12/31/09
                                                                                          First Class Mail
                                                                                          Personal Delivery
          August 2, 2010**                   Semi-Annual           1/1/10 – 6/30/10
                                                                                          First Class Mail
                                                                                          Personal Delivery
         October 12, 2010**                    Quarterly           7/1/10 – 9/30/10
                                                                                          First Class Mail
                                                                                          Personal Delivery
           January 10, 2011                    Quarterly          10/1/10 – 12/31/10
                                                                                          First Class Mail
                                                                                          Personal Delivery
           January 27, 2011                 1st Pre-Election       1/1/11 – 1/22/11
                                                                                          First Class Mail
                                                                                          Personal Delivery
          February 24, 2011                2nd Pre-Election        1/23/11 – 2/19/11
                                                                                          Guaranteed Overnight Service
                                                                                          Personal Delivery
            March 4, 2011                   3rd Pre-Election       2/20/11 – 3/2/11
                                                                                          Guaranteed Overnight Service
         Must be at the CEC                                                               Personal Delivery
                                           Late Contribution/
office within 24 Hours of receiving a                                                     Telegram
                                           Late Independent        2/20/11 – 3/7/11
Late Contribution, or making a Late                                                       Guaranteed Overnight Service
                                              Expenditure
    Independent Expenditure***                                                            Fax
                                                                                          Personal Delivery
          August 1, 2011**                   Semi-Annual           3/3/11 – 6/30/11
                                                                                          First Class Mail

                                Filing for the General Election if Held on May 17, 2011
                                                                                           Acceptable Delivery
          Filing Deadline               Type of Statement Period Covered*
                                                                                                Method
                                                                                          Personal Delivery
             April 7, 2011                  1st Pre-Run Off         1/1/11 – 4/2/11
                                                                                          First Class Mail
                                                                                          Personal Delivery
             May 5, 2011                   2nd Pre-Run Off         4/3/11 – 4/30/11       Guaranteed Overnight
                                                                                          Service
                                                                                          Personal Delivery
            May 13, 2011                    3rd Pre-Run Off        5/1/11 – 5/11/11       Guaranteed Overnight
                                                                                          Service
                                                                                          Personal Delivery
         Must be at the CEC
                                          Late Contribution/                              Telegram
office within 24 Hours of receiving a
                                          Late Independent         5/1/11 – 5/16/11       Guaranteed Overnight
Late Contribution, or making a Late
                                             Expenditure                                  Service
    Independent Expenditure***
                                                                                          Fax
                                                                                          Personal Delivery
          August 1, 2011**                   Semi-Annual           5/12/11 – 6/30/11
                                                                                          First Class Mail

Note: A candidate in the General Election must file a campaign statement for the primary election committee each
time a statement is filed for the general committee. All candidates, even those not in the general election, must
continue to file statements after an election on a semi-annual basis until their committees terminate.

*     The period covered by any statement begins on the day after the closing date of the last statement filed, OR
      January 1 if no previous statement has been filed.

** The filing deadlines of January 31, 2010, July 31, 2010, October 10, 2010, and July 31, 2011 fall on weekend
   days and have been moved to the following business days.

***     The Political Reform Act requires late contribution and late independent expenditure reports to be filed for the
      periods noted. Any late contribution or expenditure must also be reported on the subsequent campaign
      statement filed.



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Campaign Bank Accounts

Your campaign may establish only ONE campaign checking account for each controlled
committee. All funds your campaign receives must be deposited into the campaign
checking account and all campaign-related expenditures must be made from this campaign
account.

A. How to open a committee bank account

   •   Obtain an Employer Identification Number (EIN) from the IRS by completing an SS-4
       Form (Application for Employer Identification Number) available from the CEC, any
       IRS office, or on the IRS web site at www.irs.gov. The SS-4 Form has information
       about how you can apply for your EIN by phone or fax. To apply by phone, call
       (800) 829-4933 or fax your form to (859) 669-5760. Once you have applied, the
       IRS will issue your campaign an EIN and mail a tax information packet.
   •   Take your EIN and a copy of the California Form 410 (Statement of Organization)
       that was filed with the CEC and the state to any financial institution located in the
       City of Los Angeles to open your account.
   •   File a Controlled Committee Bank Account Information form (CEC Form 14) with the
       CEC within 10 calendar days of opening the account. Note: If you did not include
       your bank account information on Form 410 when you originally filed it, you must
       amend the form now to include the information.

B. Where must the account be opened?

The campaign checking account must be established at a financial institution located in the
City of Los Angeles. Charter § 470(g).

C. What if I want to use my personal funds in my campaign?

You may not make campaign-related expenditures directly from your personal funds. You
must deposit any personal funds into the campaign checking account before using those
funds. Therefore, with the exception of your initial filing fees (for forms filed with the City
Clerk during candidate filing week; see page 8), personal funds used for campaign-related
expenses must be deposited into the campaign checking account before expenditures are
made. Govt. Code §§ 85200 and 85201 (f); see also FPPC’s Campaign Disclosure Manual 2,
Chapter 1, p. 1-1.

D. What about campaign savings accounts and investment instruments?

Although the law allows you to have only one committee checking account, you may
transfer campaign funds from the campaign checking account to certificates of deposit,
interest-bearing savings accounts, money market funds, or similar accounts, provided that
these accounts are established for campaign purposes and no campaign expenditures are
made directly from those accounts. Charter § 470(g); FPPC’s Campaign Disclosure Manual
2 p. 1-1. Contributions and other funds must first be deposited into the campaign checking
account, and then may be transferred into investment accounts established only for your
candidacy. Before using investment account funds for campaign-related expenditures, the
funds must be deposited into the campaign checking account. You must report any interest
earned from these accounts as miscellaneous increases to cash on Schedule I of Form 460.




                                                                                            15
CHECKLIST OF CANDIDATE FILINGS


_____ CALIFORNIA FORM 501 (CANDIDATE INTENTION STATEMENT) - File original with the
      CEC before soliciting or receiving contributions or making expenditures. (Note: It is
      no longer a requirement to file a Form 501 with the Secretary of State.)

_____ CALIFORNIA FORM 410 (STATEMENT OF ORGANIZATION) - File an original and one
      copy with the Secretary of State within 10 calendar days of the day your committee
      raises (or anticipates raising) $1,000 within a calendar year. File a copy with the
      CEC.

_____ File each of the following forms with the CEC concurrently before soliciting
      or receiving any contributions:

          •   DECLARATION OF INTENT TO SOLICIT AND RECEIVE CONTRIBUTIONS (CEC
              Form 12);

          •   STATEMENT OF UNDERSTANDING (CEC Form 13); and

          •   NOTIFICATION OF OTHER CONTROLLED COMMITTEES (if applicable).

_____ CONTROLLED COMMITTEE BANK ACCOUNT INFORMATION (CEC Form 14)
      File with the CEC within 10 calendar days of opening a campaign checking account.

File the following forms during candidate filing week (November 8 – 13, 2010):

_____ STATEMENT OF ACCEPTANCE OR REJECTION OF MATCHING FUNDS
      File with CEC at the time the Declaration of Intent to Become a Candidate is filed.

_____ STATEMENT OF ECONOMIC INTERESTS (Form 700)
      File with the CEC no later than the deadline for filing the Declaration of Intention to
      Become a Candidate (Saturday, November 13, at 12:00 pm).

_____STATEMENT OF CITY RELATED BUSINESS
     If applicable, file with the CEC within 10 calendar days of conducting certain
     transactions with the City. (For candidates who qualify to be on the ballot, including
     as a “write-in” candidate.)

_____ DECLARATION OF INTENT TO BECOME A CANDIDATE
      Obtain from and file with the Office of the City Clerk Election Division.

_____ NOMINATING PETITIONS
      Obtain from and file with the Office of the City Clerk Election Division.




                                                                                            16
                              CHAPTER 2
                      CONTRIBUTION INFORMATION

What is a Contribution?

A contribution is a monetary or non-monetary payment made to a candidate or campaign
committee for which no goods, services or other consideration is provided to the donor in
return.

Typical examples of monetary contributions include:

   •   Your personal funds;
   •   Checks from supporters to your committee;
   •   Proceeds from the sale of tickets to fundraising events;
   •   Loans made to your committee for a political purpose;
   •   A loan to your committee that is subsequently forgiven by the lender or paid by a
       third party; and
   •   An enforceable promise to make a payment (such as loan guarantee).

Contributions do not include:

   •   Volunteer personal services or payments made by any individual for his or her own
       travel expenses if such payments are made voluntarily without any understanding or
       agreement that they shall be repaid to him or her; or
   •   Payments made by an occupant of a home or office for costs related to any meeting
       or fundraising event held in the occupant's home or office if the costs for that event
       are $500 or less. Govt. Code § 82015 (f).

Non-monetary (in-kind) contributions are goods or services provided to your campaign
or paid for by a person at your behest. Typical examples of non-monetary contributions
include:

   •   Food, beverages, flowers and decorations donated by a supporter for a fundraiser.
   •   Printing and/or mailing costs of a campaign mailer donated by the printer.
   •   Professional personal services not paid for by your campaign.
   •   An expenditure made by a third party at the behest of the candidate.
   •   Discounts or rebates your committee receives that are not extended to the general
       public (such as media discounts and rebates not extended to all candidates seeking
       the same office).
   •   The transfer of "anything of value" to your committee without full consideration
       provided in return.
   •   Reproduction, broadcast or distribution of any material belonging to a candidate.
       LAMC § 49.7.25.

A. Contributions Must be Made in the Form of a Written Instrument

Any monetary contribution of $100 or more must be made by written instrument containing
the name of the donor and the name of the payee and must be drawn from the account of
the donor (or intermediary). Contributions of $100 or more made by money order or
traveler's or cashiers check cannot be accepted, even if the name of the donor and payee
are included. Govt. Code § 84300 (c).


                                                                                            17
B. Contributions Made by Credit Card

Contributions by credit card may be accepted. If you intend to do so, you should contact
the FPPC for information. However, please remember that you must obtain all required
information about the contributor before accepting credit card contributions. (Required
contributor information is explained on page 22.) Additionally, if your committee receives a
credit card contribution, the entity making the contribution should notify your committee if
the contribution is from a personal credit card or a business credit card in order for you to
determine if it is an individual or non-individual contribution.

C. Contributions from Foreign Nationals are Prohibited

Federal law prohibits contributions from foreign nationals. A "foreign national" is any person
who is not a citizen of the United States and does not have legal permanent residency
status, or any foreign government, corporation or organization. Additionally, domestic
subsidiaries of foreign corporations and U.S. corporations owned by foreign nationals may
also be prohibited from making contributions under certain circumstances. 2 USC § 441 e;
11 CFR §§110.4(a) and 110.9(a). An immigrant is eligible to make a contribution if he or
she has a "green card" indicating that he or she has been lawfully admitted for permanent
residence in the United States. If you need more information, contact the Federal Election
Commission (“FEC”) or see Appendix 6 for the FEC’s brochure concerning contributions by
foreign nationals.

D. Contributions from Lobbyists and Lobbying Firms are Prohibited

City law prohibits you from receiving any contributions from any lobbyist or lobbying firm
that is registered to lobby the office you are seeking or your current agency pursuant to the
Los Angeles City Charter and the Municipal Lobbying Ordinance. Charter § 470(c)(11). For
more information about lobbyists and lobbying firms, please contact the CEC at (213) 978-
1960.

We encourage you to provide information about this prohibition when soliciting contributions
or fundraising in order to ensure that entities making contributions are aware of this
requirement. One way of doing this is to ask all contributors to check a box on their
contributor cards indicating whether or not they are registered to lobby in the City of Los
Angeles.

Important Note About Non-Candidate Campaign Spending
“Independent expenditures” and “member communications” may not be made at the behest
of, or in consultation or coordination with, a candidate or his or her agent. If either
independent expenditures or member communications are made in cooperation with the
candidate or candidate’s committee, they are in-kind contributions subject to the City’s
contribution limits. For an explanation of the terms “independent expenditure” and
“member communication,” see Los Angeles Municipal Code § 49.7.1.1 located in the
appendix of this guide.




                                                                                           18
Contribution Limits

There are certain limits to the amount you can receive in contributions. Before you begin to
solicit or receive contributions, you, your treasurer, and your fundraising staff should
understand the limits on contributions to candidates for elective City office.

A. Limits on Contributions from a "Person"

A "person" is: an individual, proprietorship, firm, partnership, joint venture, syndicate,
business trust, company, corporation, limited liability company, association, committee, or
any other organization or group of persons acting in concert. Govt. Code § 82047. A
person is limited to the following maximum contributions:

   1. $500 per election to a City Council candidate.

For purposes of the City's contribution limits, the primary election and the general or
“runoff” election are considered two separate elections. Therefore, the same contributor
can give the maximum amount for the March primary, and the maximum amount for the
May runoff election.

It is illegal to accept contributions in excess of applicable limits. Charter §
470(c)(3) and (4). Therefore, you should carefully track in your contributor records the
amount of contributions you receive from any one person. You have a legal obligation to
return any excess contribution to the contributor prior to deposit or you may face
penalties for violating City law. Extensions of credit for a period of more than 30 days are
subject to the applicable contribution limits.

Example: You begin fundraising for the Council District Four seat two months before the
primary election. The first month a contributor gives your primary election committee
$500. That contributor may not contribute any more money in connection with your March
primary election campaign. If you have a fundraiser after the primary election to retire debt
from that election, the limits still apply. However, if you go on to the runoff election in May,
that contributor can give up to the $500 limit again to the runoff election committee. To
help avoid confusion, your runoff committee should include the word “General” or “Runoff”
in its name.

Under limited circumstances you may return or refund certain excess contributions to avoid
potential investigation and subsequent enforcement actions by the Commission. The CEC’s
disgorgement policy is provided in Appendix 8.

If you agree to participate in the public matching funds program, there are limits
to the total amount of personal funds you are allowed to infuse into your
campaign. (See the Public Matching Funds section beginning on page 40 for more
information.)

C. Cumulative Contribution Limits Per Person Per Election

In addition to the individual limits, the Los Angeles City Charter imposes a "cumulative limit"
on the overall amount one person can contribute to all candidates in an election. This limit
changes every election, as it is determined by a formula based on the number of elective
City offices that will appear on the ballot for that particular election. Charter § 470(c)(6).



                                                                                             19
The cumulative contribution limit for the March 8, 2011 Primary Election is $3,500
per person.

The limit is calculated as follows:

Seven Even-Numbered City Council Seats multiplied by $500

or

[7] x [$500] = $3,500

This limit can change only if, for some reason, another seat appears on the ballot for that
election. The cumulative contribution limit for the May runoff election will be determined
once it is known how many seats will appear on the ballot.

Therefore, a contributor can give a total of $3,500 to any number of candidates running for
elective City office in the March 2011 primary election, apportioned any way the contributor
chooses, subject only to the per person limits for each candidate. For example, a
contributor may give $500 contributions to seven different candidates for City Council
District Four; OR give $500 contributions to one candidate in each of the seven City Council
races; OR make any combination of contributions to different candidates in the 2011
primary election, provided that the contributions are not in excess of the applicable per-
person limit and that the cumulative limit of all contributions given does not exceed $3,500.

You can help your contributors comply with the law by including this information
on your fundraising materials or by distributing brochures available from the CEC
that explain the City’s contribution limits.


D. Limits on Cash and Anonymous Contributions

You may not receive cash contributions of more than $25 per contributor. In addition, you
may not receive more than $200 in cash from all anonymous sources for an election.
Charter § 470(d) and (e). Once your committee receives a total of $200 in anonymous
contributions, it must turn over any additional anonymous contributions to the City
Treasurer for deposit into the General Fund of the City.

E. Limits on Contributions from "Non-Individuals"

City law establishes a limit* on the total amount you may receive from all non-individuals
combined. Non-individuals include entities such as businesses, corporations, labor unions
and political action committees ("PAC"). Charter § 470(c)(7).

       City Council candidate:             $150,000 per election

*This limit will be lifted if a candidate who declines to participate in the matching funds
program raises or spends an amount that exceeds the expenditure limits shown on page
45. Candidates will be notified by the CEC if the limits are lifted.




                                                                                              20
F. Limits on Loans

A loan is a contribution to your campaign and contribution limits apply unless the loan is
from you, personally. The contribution limits that apply to loans are never lifted. Charter §
470(c)(8). The amount of the loan will be applied to the lender’s total contribution. The
name, address, occupation, and employer of the lender and any guarantor, or any person
directly, indirectly or contingently liable for the loan, along with the interest rate and due
date, must be kept in your files. The following also apply:

   •   Every loan must be made in writing. A copy of the written loan agreement must be
       filed with the campaign statement on which the loan is first reported. LAMC § 49.7.6
       B.
   •   You may not accept a loan for a period longer than 30 calendar days except when a
       bank or other commercial lending institution makes the loan to you in the normal
       course of business. Charter § 470(c)(8).

G. Personal Loans to Your Campaign

The amount and duration of a loan you make to your own committee is not limited unless
you agree to participate in the matching funds program (see page 40). However, a loan is
considered a contribution to your campaign and must be made in writing. The written
agreement must be filed with the campaign statement on which the loan is first reported.

H. Repayment of Personal Loans

If you are elected to office, you may repay personal loans up to the balances listed below.
LAMC §§ 49.7.6 E and F. Any amount in excess of the balances listed below is considered a
personal contribution to your committee. Therefore, after the election, you are prohibited
from repaying the amount of the loan that is in excess of the following amounts:

       Candidate for City Council:                                $25,000

If you are a matching funds participant that is elected to office and you exceed the
applicable spending limit in an election, the balance of any personal loan may not be repaid
regardless of the amount. Upon election to City office, the total amount of the personal
loan outstanding is considered a personal contribution to your committee, and you are
prohibited from repaying the remaining balance of that loan. LAMC §§ 49.7.6 F and
49.7.19 A 4.


Required Contribution Information

You are required to maintain specific information about contributors to your campaign to
help comply with contributions limits and for recordkeeping, disclosure, and audit purposes.
It is important to record this information on alphabetized contributor cards, on an electronic
spreadsheet, or in a computerized database so that you can accurately determine the total
amount a donor has contributed, avoid receipt of excess contributions (see important
information about aggregation of contributions on page 23), identify potential "major
donors" for notification purposes, identify contributions for late contribution reporting
purposes, and verify contributor information for committee campaign disclosure statements.




                                                                                            21
A. Required Contributor Information

You may not deposit any contribution into your campaign checking account until the
contributor's name, street address (do not use a P.O. Box, and be sure to include the zip
code), occupation, employer, and the amount and date of the contribution are on file with
your campaign. LAMC § 49.7.11 B. State law requires the return of any contribution of
$100 or more within 60 days if the contributor information is not on file with the committee.
Govt. Code § 85700.

If a contributor is retired, a homemaker, or unemployed, you should record that
information. If the contributor is self-employed, you must record the name of that
individual's business—it is not sufficient to maintain and report the contributor as “self-
employed.” For example, if contributor Gary Eckstein is a doctor and operates his own
practice, his contributor information would be as follows:
___________________________________________________________________

Gary Eckstein                           Amount(s): $250 on 7/18/10
# 9 Short Street                                   $250 on 10/3/10
Los Angeles, CA 90000
Occupation: Physician
Employer: Gary Eckstein Medical Office
___________________________________________________________________

B. Date of Contribution

The receipt date of a contribution is the date you, your treasurer, or any agent for your
committee obtains possession or control of the contribution. The receipt date is not the
date the contribution is deposited or the date of a check. 2 CCR § 18421.1.

C. "Assumed Name" Contributions

A contributor is required by City and state law to disclose his or her legal name, address,
occupation and employer. An "assumed name" contribution (sometimes referred to as a
laundered contribution) occurs when a contribution is made in a name other than the name
of the true source of the contribution. Charter § 470(k).

Example: Person A makes a contribution, but is reimbursed by Person B for the amount of
the contribution. Person B is the true source of the contribution. The failure of both people
to reveal Person B as the true source of the contribution is "laundering."

If you or your committee treasurer discover than an assumed name contribution has been
received, you must promptly pay the amount received in violation of this subsection to the
City Treasurer for deposit in the General Fund of the City. Persons who launder
contributions and those who knowingly receive laundered contributions are subject to
criminal prosecution, civil suits, and administrative penalties. Charter § 470(o). If you
suspect that contributions you have received have been laundered or reimbursed, contact
the CEC.

D. Other Required Records

   •   Non-Monetary (or In-Kind) Contributions - For any non-monetary contributions, you
       must disclose the "fair market value" of the contribution. The fair market value is
       the amount you or your committee would pay on the open market for the item. You


                                                                                              22
       should first try to obtain this information in writing from the contributor. If this
       information is unavailable, you can contact vendors who provide the same or similar
       goods or services for an estimate of the fair market value. You should maintain a
       written record that describes the method you used to assess the fair market value of
       the contributed good or service.

   •   Loans to the Candidate or Committee - A loan is considered a contribution to your
       campaign. Therefore, the name, address, occupation, and name of the employer of
       any guarantor, or any person liable for the loan, along with the interest rate and due
       date, if any, must be kept in your files. If you receive a personal loan, including a
       loan from a commercial lending institution, the lender must be reported as the
       source of the loan. (See page 21 for more information about loans.)

   •   Contributions from Intermediaries - An intermediary is a person who receives money
       from a third party to make a contribution to your committee on the third party's
       behalf. For instance, let’s say Joe Smith receives a payment from John Franklin to
       contribute to your campaign and Joe Smith writes a contribution check drawn from
       his account on Franklin’s behalf. In this case, Franklin is the contributor and Smith is
       an "intermediary." You must maintain and disclose all required contributor
       information (see page 21) for both Franklin and Smith and indicate that John
       Franklin is the contributor and Joe Smith is the intermediary.


When Contributions are Aggregated

You are required to obtain specific information about contributors to your campaign to help
comply with contribution limits and for recordkeeping, disclosure and audit purposes. This
information also tells you about instances in which contributions must be aggregated
pursuant to City law. Under certain circumstances, contributions and/or expenditures from
two or more persons will be aggregated and considered to be from a single person—
meaning they will be subject to the per-person, per-election contribution limits.

You are required to aggregate contributions and/or expenditures from two or more persons
if any of the following circumstances applies (LAMC § 49.7.2):

   •   An individual who owns an investment of 50% or more, or holds a majority of voting
       rights in any corporation, limited liability corporation (“LLC”), firm, joint venture,
       syndicate, business trust, company or other business entity that is not a sole
       proprietorship, or a general or limited partnership;
   •   An individual who owns any sole proprietorship;
   •   A general partner who owns an investment of 50% or more, or holds a majority of
       the voting rights in any general or limited partnership;
   •   One person controls another’s contribution or expenditure activity;
   •   One person is the sponsoring organization (as defined in 2 CCR § 18419 (2)) of the
       other;
   •   Two entities share the same individuals that make up the majority of the members of
       their boards of directors;
   •   Two entities share the same officers or a majority of officers (a member of the board
       of directors is not considered an officer for this purpose);
   •   A corporation or LLC shares the same majority shareholder and/or member, or holds
       a majority of voting rights in any other corporation or LLC; or
   •   Two corporations are in a parent-subsidiary relationship, provided that at least one



                                                                                            23
       of them is not publicly traded.

Example: A sole proprietor of a minor league baseball team contributes $300 from her
personal checking account to a candidate for Council District Four. The owner may not
make a separate contribution from the ball club's bank account of more than $200, because
these two contributions would be aggregated and the $500 per person contribution limit for
a City Council candidate would be reached.

A. Contributions Made by a Spouse or Children

Contributions by a husband and wife are treated as separate contributions—each individual
may make contributions up to the applicable limit. Contributions from children under the
age of 18 are treated as contributions by their parents and attributed proportionately—that
is, one-half to each parent, or the total amount to a single custodial parent. LAMC § 49.7.3.

B. Contributions from Joint Checking Accounts

When a committee receives a contribution check that has the name of more than one
individual imprinted on it, state law requires that the contributions be attributed to the
individual whose name appears on the check and who also signs it, unless a signed
document accompanying the check states otherwise. If such a document accompanies the
check, it must indicate the amount to be attributed to each contributing individual and it
must be signed by each individual whose name is printed on the check. If each individual
whose name is imprinted on a check signs it, the contribution will be attributed equally to
each person, unless an accompanying document signed by each individual states otherwise.
Additionally, if the name of the individual who signs the check is not imprinted on the check
(e.g., a contribution from a trust account), then the contribution will be attributed to the
person whose name appears on the check unless otherwise specified in writing and signed
by the contributing individual(s).

Example: If a married couple makes a contribution with a check from their joint checking
account, the contribution will be equally attributed to each individual so long as both names
are imprinted on the check and both signatures appear on it. If, alternatively, the couple
wishes to make a contribution from a joint checking account using a check on which only
one of their names is imprinted, the couple must also provide an accompanying document
signed by both spouses that states how the contribution amount should be attributed.

C. Avoiding Penalties: Check for Aggregation

Taking the following steps before depositing any incoming contribution will help prevent the
receipt of excess contributions through a failure to properly aggregate:

   •   Compare similar names of individuals and businesses. For example, contributions
       from “John Doe” and “Doe Paints, Inc.” may be from the same contributor. You
       should contact those contributors to determine if their contributions should be
       aggregated.

   •   Compare the address of the new contributor to the addresses of previous
       contributors. If your campaign uses a database to track its contributions, sort it by
       address to identify contributions with the same or similar addresses. If you have
       more than one contributor with the same address, you should contact those
       contributors to determine if their contributions should be aggregated.




                                                                                           24
   •   Compare the occupation and employer information of each new contributor to those
       of previous contributors. If your campaign uses a database to track contributions,
       sort it by employer. You can use that list to determine whose occupation might
       indicate an ownership interest in a business (examples include occupations such as
       "owner/proprietor,” “businessman,” “chief executive officer," "president," “investor,"
       "partner," "general partner," etc.). Contributions from an individual may require
       aggregation with those of an entity when both the individual and entity give, and the
       individual has a specified level of ownership/partnership interest in the entity. You
       should contact contributors in these instances to determine if their contributions
       should be aggregated based on one of the criteria shown above.

   Note: The CEC’s Campaign Electronic Filing System (CEFS) has a feature that enables
   authorized users who have entered or uploaded data to check for aggregation using the
   features described above. If you would like assistance with this feature, please contact
   the CEC.

D. Disgorging Excess Contributions

   Under certain circumstances, candidates and committees may return excess
   contributions in order to avoid enforcement penalties. Please see the attached
   Disgorgement Policy (Appendix 8) for more information.




                                                                                           25
Record Keeping Responsibilities of Fundraisers and Treasurers

If you contract with a lobbyist, lobbying firm, or lobbyist employer to engage in fundraising
activities on your behalf, your treasurer and fundraiser(s) must maintain records that detail
any contributions that result from the lobbying entity’s fundraising activities. LAMC § 48.05.
These records must be retained for four years and would include:

   •   Written solicitations for contributions or invitations to fundraisers sent or otherwise
       distributed by the lobbying entity;
   •   Telephone logs detailing phone calls made by the lobbying entity to potential
       contributors;
   •   Contributor call lists;
   •   The amount of contributions raised as a result of the lobbying entity’s fundraising
       activities; and
   •   Any other documentation relevant to the contributions you receive as a result of the
       lobbying entity’s fundraising efforts.

Additionally, your treasurer and fundraisers are required to provide any records detailing
any contributions that resulted from the fundraising activities of the lobbying entity, should
the lobbying entity request those records.


Board and Commission Member Fundraising Activity

City officials who are members of City boards or commissions and who are required to file a
Statement of Economic Interests are not allowed to engage in fundraising activity on behalf
of any elective City officers, candidates for elective City offices, or any of their controlled
committees. LAMC § 49.7.8.


The State’s Late Contribution Reporting

When you receive monetary and/or non-monetary contributions from a single source that
total $1,000 or more* during the 16 days immediately preceding the date of the election,
you are required to file a Late Contribution Report (Form 497) with the CEC (see the filing
schedule on page 14). As a candidate for City Council, this requirement applies only to any
personal contribution of $1,000 or more that you make to your campaign during this period,
as you may not receive contributions from a single source that exceed $500 per election.
You must report any late contribution(s) again on the next regular filing of your Form 460.

If the late contribution is a monetary contribution, your report must be sent within 24 hours
of receipt. If the contribution is an in-kind contribution, your report must be sent within 48
hours of receiving the goods or services. An in-kind contribution is "received" on the
earliest of the following dates:

   •   The date that the contributor expends funds for the goods or services, if the
       expenditure is made at the behest of the candidate or committee;
   •   The date that the candidate, committee or any agent of the committee takes
       possession or control of the goods or services; or
   •   The date the candidate or committee receives the benefit of the expenditure.



                                                                                             26
The report must be sent by telegram, guaranteed overnight delivery service, personal
delivery or facsimile. Late Contribution Report Form 497 may be used to report a late
contribution. However, the committee may use its own format provided all of the following
information is disclosed:

   •   The candidate's full name and address;
   •   The contributor's full name, address (including zip code), occupation and employer
       (name of business if self-employed);
   •   The date the contribution was received; and
   •   The contribution amount.


Avoid Penalties: Maintain the Required Documentation for your
Records

State law requires that you keep your campaign records for four years following the date
that you file the related campaign disclosure statement (California Form 460). 2 CCR §
18401(b)(2).

You must keep detailed records pertaining to all contributions received by your campaign.
Complete and well-organized contribution records will help you prepare your campaign
disclosure statements more easily, contribute to their accuracy, and facilitate the audit
process. It is the candidate's and treasurer's responsibility to maintain detailed supporting
records for all contributions received by the campaign. These records must be made
available for examination upon the request of any public officer with enforcement authority.
Charter § 470(i).

Specifically, you should do the following:

   •   Maintain alphabetized contributor information as detailed on pages 21 and 22.
   •   Prior to depositing contributions:
           o Photocopy all contribution checks;
           o Photocopy completed deposit slips and attach the appropriate check
               photocopies; and
           o Ensure that occupation and employer information is in the committee's
               records before the contribution is deposited. State law requires this
               information to be obtained within 60 days for contributions of $100 or more.
   •   Be sure to retain deposit receipts.
   •   Keep all campaign checking and savings account information together, including
       bank statements, deposit slips, credit memoranda, check registers and passbooks.
   •   Reconcile bank statements with the check register at the end of each bank statement
       period or at least at the end of each reporting period.
   •   Record contributions daily in a general ledger or database.
   •   Maintain all documentation and information pertaining to loans received by and/or
       made by the committee or candidate.
   •   Retain copies of notification letters sent. (See pages 36 and 37.)
   •   Retain copies of all solicitation and fundraising letters.




                                                                                            27
Returned Contributions

A contribution is not considered “received” or “accepted” and does not need to be reported
if the contribution is not cashed, negotiated or deposited, and is returned to the contributor
within 14 days or prior to the closing date of the campaign statement on which it would
otherwise be reported. A late contribution (see page 26) is not required to be reported
either as a late contribution or on the next campaign statement if it is not cashed,
negotiated, or deposited, and the contribution is returned within 24 hours of receipt.

According to the FPPC's Campaign Disclosure Manual 2 (pages 6-8), contributions which are
cashed, negotiated, or deposited, or not returned before the closing date of the next
campaign statement, must be reported in the following manner:

   •   If returned to the contributor within 30 days of receipt, and within the reporting
       period, both the receipt and the return are reported on Schedule A of Form 460. The
       return is shown as a negative entry.

   •   If not returned within 30 days, the receipt is itemized on Schedule A, and the return
       is itemized on Schedule E.

How to Report "Bounced" Contribution Checks

If a contribution is returned by the bank due to "non-sufficient funds" (NSF) it must be
reported as follows:

   •   In the same reporting period - If a contributor's check deposited into your campaign
       account "bounces" during the same reporting period in which you received it, both
       receipt of the contribution and the return of the check for "NSF" are reported on
       Schedule A of Form 460. The receipt of the contribution amount is reported as a
       positive amount and the "NSF" amount as a negative entry (net effect on cash flow is
       zero). If your committee or the bank redeposits the check, you must report the
       amount on Schedule A in the period it is redeposited.

   •   In a different reporting period - If a contribution is deposited in one reporting period
       and the check is returned for "NSF" during a subsequent reporting period, you should
       itemize the return on Schedule E of Form 460. In the "Description of Payment"
       column indicate that the contribution reported on Schedule A of the previous
       statement was returned by the bank for NSF. If the check is redeposited by your
       committee or the bank, the amount has to be reported again on Schedule A in the
       period it is redeposited (and clears).

Disgorging Excess Contributions

Under certain circumstances, candidates and committees may return excess contributions in
order to avoid enforcement penalties. Please see the attached Disgorgement Policy
(Appendix 8) for more information.




                                                                                            28
                              CHAPTER 3
                       EXPENDITURE INFORMATION

What is an Expenditure?

A campaign expenditure is a payment made for goods or services that is reasonably related
to a political purpose. This payment may include a forgiveness of a loan, a payment of a
loan by a third party, or an enforceable promise to make a payment, unless it is clear from
the surrounding circumstances that it is not made for political purposes. Govt. Code §
82025.

Typical examples of qualified campaign expenditures include, but are not limited to,
payments for the following:

   •   Campaign Literature: mass mailings, slate mailings
   •   Campaign Consulting: media, legal, accounting
   •   Advertising: print, electronic media, outdoor signs
   •   Rent: office space, equipment
   •   Salary: campaign workers
   •   Campaign expenses paid by independent agents on behalf of the committee:
       purchase of advertising, printing, or postage


How to Make an Expenditure

A. Make Sure Your Expenditure is Allowable Under the Law

No expenditure of $100 or more may be made in cash (Govt. Code § 84300(b)), and no
payment of more than $50 per week can be made for petty cash purposes. Charter §
470(j). Expenditures made to seek office must be reasonably related to a political purpose.

1. Personal Benefits

State law requires any expenditure that gives you a substantial personal benefit to be
directly related to a political, legislative, or governmental purpose. Govt. Code § 89512.
The Political Reform Act contains provisions that specifically govern the use of campaign
funds for attorney fees, automobile expenses, charitable donations, clothing, equipment and
appliances, legal fines, gifts, health-related expenses, loans, professional services, real
property, your salary, independent expenditures, tickets for entertainment events and
political fundraisers, travel and accommodations, and victory celebrations. See also "How to
Reimburse Expenses," on page 31, and contact the FPPC with any additional questions.

2. Expenditures For Another City Candidate

The Los Angeles City Charter prohibits you from using campaign funds to make
expenditures in support of other candidates for City offices or to any committee supporting
or opposing any candidate for elective City office. Charter § 470(c)(9). In addition, funds
from your campaign committee or officeholder committee may not be transferred to another
committee established by this candidate for a different elective City office or to any
independent committee supporting or opposing any candidate for elective City office.



                                                                                         29
3. Public Matching Funds and Campaign Expenditures

Expenditures made with matching funds must be made solely for the purpose of influencing
or attempting to influence the action of the voters. A qualified campaign expenditure
cannot include any payment that, based on the surrounding circumstances, clearly was not
made in any part for political purposes. LAAC § 24.5(b). If you have any questions about
the permissible uses of public matching funds, contact the CEC.

B. Make All Expenditures From the Campaign Checking Account

All campaign expenditures must be made from the campaign checking account
established in connection with the election stated on your “Declaration of Intent to Solicit
and Receive Contributions.” Charter § 470(g); Govt. Code § 85201. However, you may
make expenditures from a "petty cash fund" or by credit card as follows:

1. Petty Cash Fund

No expenditure of $100 or more may be made in cash. However, you, your treasurer, or
another person authorized to issue checks, may disburse a maximum of $50 per week from
the campaign checking account to you or your committee for petty cash purposes. The
petty cash account may not have a balance of more than $100 at any time. Receipts and
other documentation must be maintained to account for expenditures made from the petty
cash fund.

2. Credit Card Expenditures

Credit card accounts may be established for your campaign. However, if your committee
uses your personal credit card, for example, the account must have a zero balance when
the committee begins to use the card. Personal expenditures may no longer be made on
this account until the campaign's balance has been paid and no other campaign
expenditures will occur using the credit card. Payments to the credit lender must be made
from the campaign checking account. You must maintain supporting documentation for
expenditures made on the credit card similar to those made from the campaign checking
account. You must keep a record of the goods and services purchased on credit from each
vendor. Further, you are required to itemize each credit card expenditure of $100 or more
on Schedule E of Form 460, including disclosing complete vendor information.

C. Document Your Expenditures

Keep detailed records of all expenditures made by your campaign. Complete and well-
organized records will help you prepare your campaign disclosure statements and facilitate
the audit process. You must keep all records that are necessary for the preparation of
campaign statements. Charter § 470 (i); Govt. Code § 84104; 2 CCR §§ 18401(a)(1) and
(4). Specifically, these records must include the following:

   •   Receipts, bills, invoices, and work orders for expenditure transactions;
   •   Employment and other contracts for services;
   •   Canceled checks, bank statements, and check registers;
   •   Petty cash documentation;
   •   Independent contractor contracts;
   •   Rental/lease contracts;
   •   A copy of each mass mailing, script, or piece of campaign literature sent; and


                                                                                               30
   •   The vendor/payee name and full street address (including zip code) for the recipient,
       and the amount, date, and description of each payment of $25 or more.

State law requires that you keep your campaign records for four years following the date
that you file the related campaign disclosure statement (California Form 460). 2 CCR §
18401(b) (2).

Note: If you retain campaign consultants to produce campaign literature, mass mailings,
scripts, or other campaign related goods and services (either in-house or through third
parties) you must maintain the same type and level of documentation as though you have
directly purchased those goods and services yourself. For example, if your campaign
consultant produced mass mailings using five different vendors, in order to comply with
record-keeping provisions you must obtain all the invoices, bills, receipts, etc. from each of
those vendors. It is not sufficient to have merely an invoice listing payments to these five
vendors from this campaign consultant in your records.

D. Maintain Required Records

It is your and your treasurer's responsibility to maintain detailed supporting records for all
expenditures made by your campaign. These records must be made available for
examination upon the request of any public officer with enforcement authority. Charter §
470(i).

E. Notify Vendors of Their Record-keeping Responsibilities

Any person who supplies goods or services to your campaign must keep detailed records of
any transaction involving expenditures by you or your committee for a period of four years.
These records must be made available to the CEC or City Attorney upon request. Charter §
470(m). Whenever possible, you should make your suppliers aware of this provision of the
City Charter.


How to Reimburse Expenses

You may not make campaign-related expenditures directly from your personal funds. Any
of your personal funds used for campaign-related expenses must be deposited into the
campaign bank account before the expenditure is made (with the exception of your initial
filing fee and fee for the Statement of Qualification). Use of your personal funds must be
reported as a contribution or loan to your campaign.

A. Volunteers and Paid Employees

Volunteers and paid employees may be reimbursed for goods, services or travel expenses
under the following conditions:

   •   Reimbursement is made within 45 calendar days after the expenditure is made; and
   •   Your treasurer is provided with a dated receipt and a written description of each
       expenditure prior to reimbursement. Govt. Code § 85201(d); 2 CCR § 18526(a)(2).




                                                                                             31
B. Agents and Independent Contractors

Agents and Independent Contractors may be reimbursed for goods, services or travel
expenses if all of the following apply:

   •   The expenditure is made pursuant to a written contract between you or your
       committee and the agent or independent contractor, which provides for the
       reimbursement of such expenditure; and
   •   Reimbursement is made within 45 calendar days after the expenditure is paid; and
   •   Your treasurer received a dated receipt and a written description of each expenditure
       prior to reimbursement. 2 CCR § 18526(b)(2).

If reimbursements are not paid within 45 calendar days, the expenditure or provision of
goods or services will be considered a non-monetary contribution to you or your committee.


Timely Reporting of Unpaid Bills (“Accrued Expenses”)
Also Refer to the FPPC's Campaign Disclosure Manual 2

Campaign statements are required to contain the total amount of expenditures made during
the period covered by the campaign statement as well as an itemization of each expenditure
of $100 or more made during the period covered by the statement. Govt. Code § 84211.
An expenditure is made on the date the payment is made or on the date consideration, if
any, is received, whichever is earlier. Govt. Code § 82025. Expenditures for goods or
services received in one reporting period but paid in part or in full during another period are
commonly referred to as "accrued expenditures."

A common mistake is the failure to report expenditures that are "accrued" in one period
but not disclosed until the reporting period when payment is made. Many candidates and
treasurers wait until an invoice is received and a check is drawn before they include an
expenditure on a campaign report even though they received the goods or services at an
earlier date. This is not permitted by law.

Please also note that: 1) for candidates who participate in the matching funds program,
accrued qualified expenditures count toward the expenditure limit; and 2) for candidates
who decline to participate in the matching funds program, accrued qualified expenditures
count toward the expenditure notification requirement (see page 36).

A. How to Report Accrued Expenses

Reporting accrued expenses of $100 or more
You must continue to itemize the accrued expense through each reporting period until it is
paid in full on Schedule F of the California Form 460. Once payment is made it must also be
reported on Schedule E.

Example: During the month of June, you ordered and received literature from a printer at a
cost of $2,500, but had not yet paid the printer by June 30, 2010, the end of the semi-
annual reporting period. On the July 2010 Semi-annual statement, report the $2,500
unpaid bill as an accrued expense on Schedule F of your Form 460. After that reporting
period, you paid the $2,500 bill in full. On your next statement, the Quarterly report
covering July through September, itemize the accrued expense again on Schedule F and



                                                                                            32
report a beginning balance of $2,500, a payment of $2,500, and a balance owed of $0. You
would not report this accrued expense again. (Note: The $2,500 payment must also be
itemized on Schedule E of the Quarterly report.)

Another Example (using the same figures as the previous example): If the payment made
to the printer was only $1,000, the remaining balance is $1,500. On your statement, you
will itemize the accrued expense and report a beginning balance of $2,500, a payment of
$1,000, and a balance owed of $1,500. You will continue to report this accrued expense on
subsequent statements until the obligation is paid. If you incurred additional expenses to
this printer during the period, you would report that amount as well, in column (b) of
Schedule F. (Note: The $1,000 payment must be itemized on Schedule E of the report.)

Note: As shown in both examples above, all payments made and reported on Schedule F
must also be reported and itemized on Schedule E of the Form 460.

Reporting (unitemized) accrued expenses under $100

   1. When the expense is incurred: Total all unitemized accrued expenses under $100
      incurred for the applicable reporting period. Add this total of unitemized accrued
      expenses to the total of all itemized accrued expenses incurred during the reporting
      period. (The itemized accrued expenses total is determined by adding all Schedule
      F, Column (b) subtotals.) The resulting figure is the "Total accrued expenses
      incurred this period" - Line 1 of the Schedule F Summary section.

   2. When the expense is paid: Total any unitemized accrued expenses paid during the
      reporting period and add to the total of all itemized accrued expenses paid during the
      period. (The total itemized accrued expenses paid is determined by adding Schedule
      F, Column (c)). The resulting figure is the "Total accrued expenses paid this period"
      - Line 2 of the Schedule F Summary section. The payment of unitemized accrued
      expenses must be added to the total of all other unitemized expenditures made and
      reported on Line 2 of the Schedule E Summary section - "Unitemized payments
      made this period under $100."

Reporting Administrative Expenses

There are certain expenses that may carry over from one reporting period to another that
you do not have to report as accrued expenses. These expenses include regularly recurring
administrative overhead such as rent, utilities, phones, campaign workers' salaries etc., if
the payment due date has not occurred at the end of the reporting period. Campaign
workers' salaries only include payments to those individuals for whom the committee is
paying federal and state employment taxes. Consultant contracts and contracts with
independent contractors are not considered regularly occurring administrative overhead of a
committee. 2 CCR Section 18421.6.




                                                                                         33
                                  CHAPTER 4
                               COMMUNICATIONS

Campaign Communications

A. Filing Requirements

Whenever your committee distributes more than 200 substantially similar pieces of
campaign literature within a calendar month (either by mail or by other means), your
committee must file a copy electronically with the CEC at the time of distribution. A
candidate who is not required to create a committee may submit the literature by mail,
personal delivery, or facsimile. The CEC serves as a repository for the mass mailings,
making them available for review by other candidates and members of the public. LAMC §
49.7.11C. For information on filing your campaign literature electronically, please contact
the CEC at (213) 978-1960.

Whenever your committee makes or incurs payments for 1,000 or more recorded telephone
calls or any other forms of electronic or facsimile transmission of substantially similar
content, or makes or incurs expenditures of $1,000 or more for a radio or television
advertisement, your committee must:

   •   be identified in the text of that communication; and
   •   provide a copy of the recording or text to the City Ethics Commission for the public
       to view within 24 hours of the first time the calls, transmissions, or advertisements
       are made or aired.

The CEC merely serves as a repository for the information and does not judge or comment
on the contents of the communication. The requirements for radio or television advertising
apply if you spend $1,000 or more. For example, a radio ad that costs $500 for production
and $750 for airtime should be reported to the CEC because the total cost of the advertising
for a single candidate exceeded the $1,000 threshold. All costs related to the ad or phone
calls such as consulting and personnel costs, toll charges, and production charges count
toward the $1,000 threshold for filing. LAMC § 49.7.26 E.


B. Campaign communication identification requirements

Under City law, “campaign communications” means any of the following items:

   •   More than 200 substantially similar pieces of campaign literature distributed within a
       calendar month, including but not limited to mailers, flyers, facsimiles, pamphlets,
       door hangers, e-mails, campaign buttons 10 inches in diameter or larger, and
       bumper stickers 60 square inches or larger;
   •   Posters, yard or street signs, billboards, supergraphic signs, and similar items;
   •   Television, cable, satellite, and radio broadcasts;
   •   Newspaper, magazine, internet website banners, and similar advertisements; and
   •   200 or more substantially similar live or recorded telephone calls made within a
       calendar month. LAMC § 49.7.26.3 D.

*Note: all campaign communications must contain the proper disclaimer
language.*


                                                                                           34
City law requires that any candidate or committee that pays for a campaign communication
include the words “Paid for by” immediately followed by the full name, address (as listed on
Form 410), and city of that candidate or committee. If the sender of the communication is
a controlled committee, the name of the person controlling the committee must also be
included. LAMC § 49.7.26.3 A. This information must be included on the outside of the
campaign mailing and on the inserts including in the mailing.

Print communications

For printed campaign communications that measure no more than twenty-four by thirty-six
inches (24 x 36 inches), all disclosure statements required under the law must be printed
using a typeface that is easily legible to an average reader or viewer, and is not less than
12-point font in a contrasting color to the background on which it appears. For oversize
printed campaign communications, all disclosure statements shall constitute at least five
percent (5%) of the height of the material and be printed in a contrasting color. LAMC §
49.7.26.3 C 1.

Audio communications

For audio, telephone call, or radio advertisement campaign communications, the disclosures
must be spoken in a clearly audible manner at the same speed and volume as the rest of
the communication. The disclosure may be spoken at either the beginning or end of the
communication, and must be at least three seconds long. The disclosure may include the
words “on behalf of” immediately followed by the name of the candidate or committee that
pays for the communication, instead of the words “Paid for by”. LAMC § 49.7.26.3 C 3.

Additionally, under state law, if campaign funds pay for 500 or more telephone calls
(exclusive of those made personally by the candidate, his or her campaign manager or
volunteers) to support or oppose candidates or ballot measures, the committee must
include the name of the organization paying or authorizing the call. Gov't Code § 84310; 2
CCR § 18440.

Video communications

For video broadcasts—including television, satellite, and cable campaign communications—
the disclosures must be both written and spoken either at the beginning or end of the
communication (except that if the written disclosure appears for at least five seconds of a
thirty second communication or ten seconds of a sixty second communication, a spoken
disclosure is not required). The written disclosure must be a sufficient size to appear readily
legible to an average viewer and air for not less than four seconds. LAMC § 49.7.26.3 C 2.

For Each Campaign Communication, You Must Retain in Your Records*:

   •   An original sample of each communication;
   •   The distribution date of each communication;
   •   The number of pieces distributed;
   •   The method of distribution. If mailed, the postage method (i.e., first or third class);
       and
   •   Documentation of the expenditures related to the mailing.

*We suggest that you maintain a campaign communication log in your records.




                                                                                            35
                              CHAPTER 5
                      NOTIFICATION REQUIREMENTS
All candidates have certain notification responsibilities related to contributions and
expenditures. It is important to note that each of these notifications plays a crucial role in
the course of an election – from determining whether a candidate qualifies and receives
matching funds to when the per person per election contribution limit is temporarily lifted.


Requirements for All Candidates

You must notify the CEC, your opponent(s), and/or contributors under ANY of the
circumstances described below.

A. On the Day you Raise, Spend, or Have Cash on Hand

In connection with the September 2009 primary election, on the day you raise, spend or
have cash on hand totaling more than the following amounts, you must notify the CEC by
personal delivery, telegram, fax or e-mail. The notification must state whether the amount
indicated was raised, spent or is cash on hand. The CEC in turn will notify all other
candidates running for the same elective office. LAMC § 49.7.18 B.

       City Council candidate:              $50,000

B. All Candidates Who Declined to Participate in the Matching Funds Program

Candidates who decline to participate in the Matching Funds Program must notify the CEC
by telephone and by confirming telegram, fax or e-mail on the day that the candidate
receives contributions* totaling more than the amounts below and on the day that the
candidate makes qualified expenditures* totaling more than these amounts. LAMC §
49.7.15.

                                     Primary Election      General Election
       City Council candidate:       $330,000              $275,000

*Remember: In-kind contributions and accrued expenditures count toward determining
whether these levels have been reached.

C. All Candidates Who Participate in the Matching Funds Program

Candidates who agree to participate in the Public Matching Funds Program must notify the
CEC by personal delivery, telegram, fax or e-mail on the day that the candidate raises*,
spends* or has cash on hand in the amounts below. LAMC §§ 49.7.13 and 49.7.18.

                                     Primary Election      General Election
       City Council candidate:       $330,000              $275,000

*Remember: In-kind contributions and accrued expenditures count toward determining
whether these levels have been reached.




                                                                                             36
WHEN DO I NOTIFY? (QUICK REFERENCE)

Please use this checklist only as a reminder of requirements. To determine who and how
you need to notify, you’ll need to refer to the pages cited below. Unless noted, requirements
apply to both the primary and general elections.

All Candidates

____ On the day you raise, spend or have cash on hand totaling these amounts for either
the primary or general elections (see page 36): City Council Candidate - $50,000.

Matching Funds Program Participants Only

____ On the day you raise,* spend* or have cash on hand* totaling these amounts: (See
page 36.)

                                   Primary Election      General Election
       City Council candidate:     $330,000              $275,000

*Remember: In-kind contributions and accrued expenditures count toward determining
whether these levels have been reached.

Non-Matching Funds Program Participants Only

____ On the day you raise contributions* and also on the day you make qualified
expenditures* totaling more than these amounts: (See page 36.)

                                   Primary Election      General Election
       City Council candidate:     $330,000              $275,000

*Remember: In-kind contributions and accrued expenditures count toward contribution and
expenditure limits.




                                                                                          37
                              CHAPTER 6
                          COMMITTEE CHECKLIST

Have You Done These Things?

REMINDERS ABOUT COMMITTEE ORGANIZATION AND FILINGS

Before Fundraising and Making Campaign Expenditures:

__   Familiarize yourself with the fundraising window for your elective office
     (p. 6)

__   Review the state and City laws pertaining to municipal elections (p. 4)

__   Learn the contribution limits for your elective office (p. 19)

__   File all required forms with the CEC (pp. 6-9, Checklist of Forms p. 16)

__   Open only one campaign checking account and file the related forms (pp. 7
     & 15)

__   Upon raising or spending $1,000, organize your campaign committee by filing
     Form 410 (p. 7)

During Candidate Filing Week: November 8 – 13, 2010 at 12:00 pm
(Contact the City Clerk Elections Division for information)

__   File all forms required by the City Clerk Election Division (pp. 8 & 9,
     Contact the Office of the City Clerk for information)

__   File your Statement of Economic Interests (p. 8)

__   Disclose any City-related business (p. 9)

__   File your Statement of Acceptance or Rejection of Matching Funds (p. 9)

Throughout the Campaign

__   File campaign disclosure statements, in hardcopy (and online, as required)
     (pp. 11 & 12)

__   File all notification reports as required (pp. 36 & 37)

__   File Late Contribution Reports as required (pp. 26 & 27)

__   Include campaign identification on or in campaign communications (pp. 34 & 35)

__   File an electronic copy of each piece of campaign literature at the time of distribution
     (p. 34)




                                                                                           38
CHECKLIST FOR GOOD RECORD-KEEPING

Retain for your records:

__    Contributor information which includes the name, address (including zip code),
      occupation, employer (if self-employed, the name of the business), date,
      amount, and cumulative amount, for your contributors.

__    Photocopies of contribution checks.

__    For each contribution received, documentation of whether the contribution is a
      personal or business contribution.

__    Copies of deposit receipts and deposit slips attached to the associated check
      copies.

__    Bank statements, check registers, journals, passbooks, etc.

__    Bank debit and credit memos, including non-sufficient funds (NSF) check
      notices and redeposit slips.

__    Originals of all mass mailings and campaign literature, and records to document
      date mailed, number of pieces sent, method of postage, and receipt of filing with the
      CEC.

__    Copies of campaign scripts and recordings.

__    Copies of notification letters sent by your campaign. (See pp. 36 & 37
      for notification requirements.)

__    Documentation (canceled checks, invoices, receipts, bills, contracts) for all
      expenditures (including records of media buys and associated costs).

__    Loan documentation including written agreement, lender name, amount, due
      date and interest rate.

__    A record of the committee's efforts in resolving campaign issues pertaining to
      such matters as aggregation of contributions, missing or incomplete
      contributor information (particularly missing occupation and employer
      information), etc.




                                                                                         39
                                CHAPTER 7
                          PUBLIC MATCHING FUNDS

The Public Matching Funds Program

City law establishes a public matching funds program to help restore public trust in
government and to help promote a stage for multiple voices in the City’s elections. The
matching funds program helps qualified candidates for elective City office raise funds
without having to rely on large campaign contributions and on excessive fundraising and
expenditures. With the passage of Proposition H in 1990, the City Charter required the City
Council to establish a Matching Funds Trust Fund not to exceed $8 million, adjusted for cost
of living changes.

Candidates must meet certain qualifying requirements before they are eligible to receive
any public matching funds. Once qualified, a candidate can use the formula detailed in the
law to request public funds to match contributions received from individuals, up to a certain
maximum. To participate in the system and receive matching funds, a candidate must
agree to limit his or her campaign spending and use of personal funds, and must agree in
writing to debate his or her opponents.

A. Accepting or Rejecting Participation in the Matching Funds Program

At the time you file your Declaration of Intention to Become a Candidate with the City Clerk
during the candidate filing week from November 8 – 13, 2010 at 12:00 pm you must file a
Statement of Acceptance or Rejection of Matching Funds (CEC Form 20) with the CEC. This
form states whether you agree to participate or decline to participate in the program. Your
decision applies to both the primary election and the general election: if you decide not to
participate in the program when you declare your candidacy for the primary, you cannot
change your mind and participate in the program in the general election. If you do opt to
participate in the program, you are not obligated to submit a request for any funds.
However, regardless of whether you actually request and receive public matching funds,
once you have agreed to participate you are required to abide by the program's rules and
requirements. If you declare your intention to participate in the matching funds program,
you may withdraw if you do so within 7 days after the final date to file a Declaration of
Intention to Become a Candidate (by November 20, 2010) and only if an opponent in your
race declines to participate in the program.

B. How to Qualify for Matching Funds (LAMC § 49.7.19)

Note: Once a candidate qualifies for matching funds in the primary election, he or she
automatically qualifies for matching funds in the general election.

A candidate for City Council must meet each of the following criteria to qualify:

   •   raise $25,000 or more in contributions* of $250 or less per person. (Contributions
       of up to the $500 limit may be received, but only the first $250 counts for
       qualification purposes.)
   •   receive these "qualifying" contributions within the 18-month fundraising window from
       the date the candidate filed his or her DOI with the CEC for the primary election.
   •   be opposed by another candidate who has qualified for matching funds or who has
       raised, spent, or has cash on hand of $50,000 or more.


                                                                                           40
   •   agree to not contribute more than $25,000 per election from his or her personal
       funds for the primary or general elections.
   •   agree to debate his or her opponent(s) at least one (1) time in the primary and two
       (2) times in the general election.

*Contributions from the candidate or his or her immediate family (i.e., spouse and
dependent children) are not counted for qualification or matching purposes. A loan, pledge
or non-monetary contribution is not considered a contribution for matching funds purposes.

C. Participation in Debates

To qualify for matching funds, the candidate must agree in writing that he or she will
participate in at least one debate with his or her opponent(s) in the primary election and at
least two debates with his or her opponent in the general election. LAMC § 49.7.19 C. This
is done as part of the filing of the Statement of Acceptance or Rejection of Matching Funds
(CEC Form 20) with the CEC during filing week from November 8 – 13, 2010 at 12:00 pm.

D. Formula for Matching Funds*

City Council Candidates
For the primary election, qualified candidates receive one dollar of public matching funds for
every one dollar raised from an individual (a human being rather than another type of
entity) in contributions totaling no more than $250 per individual received within 12 months
before the election or from the date of filing the DOI, whichever is later. Note that
contributions up to the legal $500 limit may be received, but only the first $250 from each
individual will be matched. Upon certification for the general election, each matching funds
participant will receive a $25,000 grant (1/5th of $125,000). The remaining $100,000 of
matching funds available to the candidate will be provided on the same basis as for the
primary election. LAMC § 49.7.20.

*Please also see maximum matching funds available (p. 43) for circumstances when the
formula may be accelerated.

E. Contributions Not Eligible to be Matched

Any contribution received from the candidate, from his or her immediate family (i.e., spouse
and dependent children), from non-individuals (e.g. businesses, unions, PACs or other
organizations), or any loan, pledge, or non-monetary contribution cannot be matched, but
may count for qualification purposes. Any contribution that is returned to the contributor or
that is not paid by the contributor (e.g., a “bounced” contribution check) cannot be
matched.




                                                                                           41
F. Request for Matching Funds Payments

Candidates file a Matching Funds Claim Form (Form 21) with the City Ethics Commission
along with a list of contributions requested to be matched and a photocopy of each
corresponding contribution check. The "matchable" contributions list (Form 22) and
photocopied checks must be in alphabetical order (by last name). LAAC § 24.5(i)(2)(A).
The candidate must sign the claim form indicating that he or she is not submitting any
claims ineligible to be matched, e.g., contributions that do not contain all required
contributor information, contributions from non-individuals, contributions that have already
been matched, contributions that have “bounced,” or claims for amounts that exceed the
limits allowed by the matching funds formula. The CEC staff reviews the claim and certifies
the amount of matching funds the candidate is eligible to receive.* The staff then
authorizes the Controller to make matching funds payments to the candidate in the
qualifying amount. These procedures are detailed in Los Angeles Administrative Code §
24.5(h).

A candidate may submit a claim for a matching funds payment at any time before the
election. However, he or she may not request payment of less than $10,000 at any one
time until 14 days before the election. During the 14 days preceding the election a
candidate may request $1,000 or more in matching funds payment at one time. Payments
will be made available to the committee at the CEC office no later than four business days
after a request has been submitted to the CEC. No payment, however, will be made until
the candidate has been certified to appear on the ballot by the City Clerk. LAMC §§ 49.7.21
and 49.7.23.

A candidate who knowingly or willfully makes a request for matching funds payments that is
false, or who misrepresents the contributions received by him or her or by his or her
controlled committee, is guilty of a misdemeanor. In addition, any candidate who
knowingly, willfully or negligently makes a request for matching funds payments that is
false, or who knowingly, willfully, or negligently misrepresents the contributions received by
him or her or by his or her controlled committee, must return all matching funds received as
a result of that request. LAMC § 49.7.21.

*If any contribution from a claim is not matched, the candidate may submit an amended
claim, including new Form 21 and Form 22, and supporting documentation indicating why
that contribution should be matched by the program. All unmatched contributions from a
single claim should be resubmitted together as a separate “amended claim.” Please do not
co-mingle amended contribution claims with new claims for matching funds or submit
amendments from more than one original claim together. For instance, if a candidate’s first
and second matching fund claims have unmatched contributions, the candidate must submit
two amended claims -- a new Form 21 and Form 22 corresponding to the first claim and
another new Form 21 and Form 22 for the second.

G. Payment Is Not Final Determination

A payment of public matching funds to the candidate does not constitute the final
determination of the amount for which a participant is qualified to receive. All payments are
subject to post-payment audits and re-adjustment pursuant to the audit requirements
established in Los Angeles Administrative Code Section 24.6. Further, at any time upon
additional review, CEC staff may notify the participant that he or she qualifies for additional
matching funds or that he or she has received funds in excess of those eligible to be
matched. If the participant has received excess public funds, he or she must refund the
amount to the CEC within 10 days of such notice, or subsequent payments will be reduced


                                                                                            42
by the amount of the overpayment. Candidates who do not refund public funds as required
are subject to legal action for collection. LAAC §§ 24.5(k) and (n).

H. Matching Funds for the General Election

A candidate who is in a runoff election is eligible to receive one-fifth of the allowable
matching funds without regard to the matching funds formula. Receipt of additional
matching funds depends on the amount of qualifying contributions raised by the candidate.
LAMC § 49.7.19B.

I. Matching Funds for Retiring Debt

Campaign contributions received after an election shall be eligible for matching funds if the
contributions were received during the three month period after the election for the purpose
of retiring debt incurred during the election campaign. The balance of any outstanding
personal loan that is a contribution under Section 49.7.6 is not “debt” for the purposes of
retiring debt using matching funds. LAMC § 49.7.19A4.

J. Maximum Matching Funds Available

The matching funds system establishes limits on the maximum public funds available to
each qualified candidate in the primary and general elections. LAMC § 49.7.22. The limits
are as follows:

                                   Primary        General       Additional Funds
                                   Election*      Election**    For General Election
       City Council candidate:     $100,000       $125,000      $25,000

*For the Primary Election: Once any non-participating candidate in the same race has
contributed an amount of personal funds greater than or equal to 50% of the applicable
spending limit and spent in excess of the applicable spending limit, any candidate who has
qualified to receive matching funds may become eligible to receive, from that point forward,
$3 in public funds for each eligible dollar in contributions received up to the applicable
primary election amount shown in the table above.

**For the General Election: A qualified candidate may receive matching funds from that
point forward at the rate of $3 in public funds for each eligible dollar in contributions
received up to the applicable general election amount plus the additional funds as shown in
the table above once any of the following occurs:

   •   Any non-participating candidate in the same race has contributed an amount of
       personal funds greater than or equal to 50% of the applicable spending limit and
       spent in excess of the applicable spending limit in that race;
   •   Non-candidate spending is made in support of the other candidate in the same race
       in the following aggregate amounts: $50,000 in the case of a candidate for City
       Council; or
   •   Non-candidate spending is made to oppose the matching funds candidate’s election
       in the following aggregate amounts: $50,000 in the case of a candidate for City
       Council.




                                                                                          43
K. Surplus Public Funds

“Surplus Public Funds” (not the same as "surplus campaign funds" under state law) is the
amount of unspent public matching funds after the candidate has withdrawn his or her
candidacy, or after an election and after qualified expenditures incurred in that election
have been paid. LAAC § 24.5(b). Candidates must repay any surplus public funds
remaining in his or her possession to the Matching Funds Trust Fund no later than 30 days
after the election or, if the candidate withdraws from the election, no later than 10 days
after the participant withdraws his or her candidacy. LAAC § 24.5 (r)(1).

L. Insufficient Matching Funds

If the Commission determines that there may be insufficient matching funds to satisfy the
full entitlement of all eligible candidates, the Commission will withhold sufficient amounts to
ensure that all candidates receive a pro-rata share of the funds available. In making its
determination and conducting pro rata disbursement, the CEC will follow procedures
established in LAAC § 24.5(g) for allocating funds in these circumstances. LAMC § 49.7.23.

M. Campaign Expenditure Limits

Regardless of whether you actually request and receive public matching funds, once you
have agreed to participate you are required to abide by the program's overall qualified
expenditure limit. LAMC § 49.7.13. Specifically, a candidate must limit total qualified
campaign expenditures to one of the following applicable amounts:

                                    Primary Election      General Election
       City Council candidate:      $330,000              $275,000

N. Qualified Campaign Expenditures

A "qualified campaign expenditure" is any expenditure made by a candidate for elective City
office, or by a committee controlled by such a candidate, for the purpose of influencing or
attempting to influence the actions of the voters for or against the election of any City
candidate. Such an expenditure also includes a non-monetary (in-kind) contribution
provided at the request of or with the approval of the candidate, officeholder or committee
controlled by the candidate or officeholder. Such expenditures, however, do not include any
payment if it is clear from the surrounding circumstances that it was not made in any part
for political purposes.

Reminder: Accrued expenditures count towards the spending limits. If a candidate, who is a
matching funds participant, exceeds the applicable spending limit in an election, the balance
of any personal loan may not be repaid regardless of the amount. The total amount
outstanding is considered a personal contribution to the candidate’s committee, and he or
she is prohibited from repaying that loan after the date he or she is elected.




                                                                                             44
O. Expenditure Ceiling Lifted

Campaign spending limits may be lifted for each matching funds participant in a race for
elective City office if either of the following circumstances occurs. LAMC § 49.7.14.

   1. If any candidate in that race who declines to accept matching funds makes qualified
      campaign expenditures in excess of the following amounts:

                                     Primary Election      General Election
       City Council candidate:       $330,000              $275,000

Note: A candidate who declines to receive matching funds and spends more than 100% of
the applicable expenditure ceiling must notify the City Ethics Commission by telephone and
confirming telegram or fax the day the ceiling is exceeded. The Commission will then notify
all other candidates for the same office by telephone or fax.

   2. If independent expenditure(s)* made total in the aggregate more than the following
      amounts in support of or opposition to any particular candidate in that race:

       City Council candidate:       $50,000

*“Independent Expenditure” means an expenditure made by any person in connection with
a communication that expressly advocates the election or defeat of a clearly identified
candidate; or, taken as 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 committee.

P. Limits on Total Non-Individual Contributions May be Lifted Under Some
Circumstances

City law establishes a limit on the total amount a candidate may receive from all non-
individuals combined. Non-individuals include corporations, labor unions and political action
committees ("PACs"). This per election limit is: Charter § 470(c)(7).

       City Council candidate:              $150,000

This limit may be lifted for all candidates in a race if a candidate in that race who declines
participation in the matching funds program raises or spends an amount that exceeds:

                                     Primary Election      General Election
       City Council candidate:       $330,000              $275,000




                                                                                                 45
KEY DATES FOR MATCHING FUNDS PROGRAM
2011 Municipal Election

This schedule is intended only as a general guide to the deadlines established for the public
matching funds program. For complete program requirements, see City Charter section
471, Los Angeles Municipal Code section 49.7.1 et seq. and Los Angeles Administrative
Code section 24.5 et seq.

   •   November 8, 2010 - First day to file Declaration of Acceptance or Rejection of
       Matching Funds. (Statement must be filed concurrently with the individual's
       Declaration of Intention to Become a Candidate.)

   •   November 13, 2010 (at 12:00 pm) - Last day to file Declaration of Acceptance or
       Rejection of Matching Funds. (Statement must be filed concurrently with the
       individual's Declaration of Intention to Become a Candidate.) Note: Any candidate
       who fails to file a Statement of Acceptance or Rejection of Matching Funds at the
       time that he or she submits his or her Declaration of Intention to Become a
       Candidate may not participate in the matching funds program.

   •   November 20, 2010 - Last day for any candidate who (1) previously filed a
       Statement of Acceptance or Rejection electing to accept public matching funds and
       (2) has an opponent who has elected to not accept matching funds to notify the City
       Ethics Commission in writing that he or she has chosen to withdraw from the
       matching funds program. The deadline is at 5:00 p.m.

   •   November 20, 2010 - Last day for City Ethics Commission to determine if the
       amount of money in the trust fund is adequate to provide maximum matching funds
       to all participants.

   •   February 22, 2011 - Participants may begin to submit matching funds payment
       requests in amounts of $1,000 or more for the primary election.

   •   February 22, 2011 - Last day for City Ethics Commission to review the prior
       determination concerning the trust fund, certifying that adequate funds exist to
       provide maximum matching funds in the primary election to all participants.

   •   March 8, 2011 - PRIMARY ELECTION

   •   TBA - No later than seven days after the City Clerk certifies candidates for the
       general election, the City Ethics Commission will review the matching funds trust
       fund to certify that adequate funds exist to provide maximum matching funds in the
       runoff (general) election to all participants.

   •   May 17, 2011 - RUNOFF ELECTION, IF NECESSARY

   •   June 8, 2011 - Last day City Ethics Commission will accept matching funds payment
       requests for the primary election.

   •   August 17, 2011 - Last day City Ethics Commission will accept matching funds
       payment requests for the runoff election.




                                                                                           46
Matching Funds System & Campaign Spending Limits
Summary for Matching Funds Participants

Qualifying Provisions

Candidates for City Council
   • Raise $25,000 or more in contributions of $250 or less which are received within 18-
      month window from the date of filing the DOI with the CEC for the primary election.*
   • Be opposed by a candidate who’s qualified for matching funds or has raised, spent,
      or has cash-on-hand of $50,000 ore more.
   • Agree not to contribute more than $25,000 per election from personal funds to his or
      her campaign for the primary and general elections.
   • Agree to debate at least one (1) time in the primary and two (2) times in the general
      election.

Note: Contributions up to the legal limit may be received, but only the first $250 of each
contribution to a council candidate counts for qualification or matching purposes.
Contributions from a candidate and his or her immediate family (i.e., spouse and dependent
children), loans, pledges, or non-monetary contributions do not count for qualification
purposes (and are not eligible to be matched).

Matching Funds Formula

City Council: 1:1 for every $1 raised from individuals up to $250 per individual raised
within the 12 months before the election

Increased M/F Rate—Primary Election:
Rate of 3:1 once any non-participating candidate has contributed personal funds greater
than or equal to 50% of the applicable spending limit and spent in excess of the applicable
spending limit in that race.

Increased M/F Rate—General Election:
Rate of 3:1 once any of the following occur:
    • any non-participating candidate has contributed personal funds greater than or equal
       to 50% of the applicable spending limit and spent in excess of the applicable
       spending limit in that race; or
    • non-candidate spending is made to support any other candidate or to oppose a
       Matching Funds candidate in these aggregate amounts: $50,000 for City Council.


                                    Matching Funds Limits
                                    a)          b)               c)
City Council
                                    Primary       General        Possible additional
                                    Election      Election       funds for General
Matching Funds Available            $100,000      $125,000       $25,000
Expenditure Limit                   $330,000      $275,000       N/A

Note: Matching funds participants who qualify for the general election are eligible to (i)
receive 1/5th of maximum matching funds available, not subject to matching funds
requirements, and (ii) receive total matching funds available up to the limits shown for the



                                                                                           47
general election above, either column b) or column b) plus c).

EXPENDITURE CEILINGS ARE LIFTED IF EITHER OCCURS:

A candidate who declines matching funds makes expenditures of at least 100% of the
expenditure ceiling, or

Independent expenditure(s) made in support of or in opposition to any such candidate
running for the same office total in the aggregate more than: $50,000 in a City Council
election.




                                                                                          48
                                  CHAPTER 8
                              AFTER THE ELECTION

What to Do When the Election is Over

You may not receive contributions more than nine months after the date of the election.
The CEC may not extend the period for receiving contributions beyond this nine-month
post-election fundraising window. Contributions solicited or received or caused to be
solicited or received by you and your controlled committee after the election are solely for
the purpose of retiring campaign debt except to the extent prohibited by LAMC §§ 49.7.6
and 49.7.12. LAMC § 49.7.7.

Remember: When soliciting and receiving contributions to retire debt, the contribution limits
still apply; and for Matching Funds Program participants all expenditure ceilings still apply
unless you have been otherwise notified by the CEC. Also see page 21 for information
about restrictions on repaying the candidate’s personal loans made to his or her own
campaign committee.

A. Candidates Elected to Office

After campaign debts are retired (and surplus public funds returned, if applicable), any
remaining campaign funds, up to a maximum of $75,000, shall become officeholder
expense funds. These funds must be used for expenditures associated with holding office
subject to the restrictions in the City's Campaign Finance Ordinance. LAMC § 49.7.12, et
seq. The candidate must redesignate the campaign committee as the officeholder expense
fund committee within six months of the election. The campaign committee's Form 410 -
Statement of Organization should be amended with a new name so that it is clear that the
committee is to be used for officeholder expense fund purposes. The total outstanding
balance of an officeholder expense fund during any fiscal year must not exceed $75,000.
LAMC § 49.7.12A5(a) and (b). If you have any questions about setting up your
officeholder expense fund committee, please contact the CEC at (213) 978-1960.

B. Candidates Moving on to the General (“Runoff”) Election

Candidates who will proceed to the runoff election should take the following steps:
   • Form a new campaign committee for the general election. File an original California
      Form 410 plus one copy with the Secretary of State’s office and one copy of the
      Form 410 with the City Ethics Commission. Please use a different name for the
      runoff committee -- preferably with the term "runoff" or "general" in the name.
      Remember to include the committee's new checking account information, if available,
      on the form.
   • Open a new bank account for the runoff campaign committee. File a Controlled
      Committee Account Information Form with the City Ethics Commission within 10
      calendar days of opening the account.
   • File a new Declaration of Intent to Solicit and Receive Contributions (“DOI”) for the
      runoff election. Pursuant to City Charter Section 470(c)(1), the Declaration you filed
      for the primary election is automatically voided after that election.
   • File notices of Other Controlled Committees concurrently with the DOI. (If the
      candidate has other controlled committees, the candidate must notify the CEC in
      writing of these committees, the account numbers, and the names and addresses of
      the financial institutions at which the accounts are held. If other committees are


                                                                                               49
       subsequently opened, the candidate must notify the CEC on the next regular
       business day.)
   •   You do not have to close your primary election committee or bank account. You and
       the campaign treasurer are responsible for maintaining adequate documentation to
       verify that primary election expenditures are made from the primary account and
       runoff election expenditures are made from the runoff account.
   •   File Campaign disclosure statements for all of your controlled committees (e.g.,
       primary election committee and runoff election committee, any state committee)
       pursuant to the disclosure filing schedule on page 14.

C. Candidates Terminating Their Campaigns

You may terminate your campaign committee after an election if you have met all of the
following requirements. Govt. Code § 84214; 2 CCR § 18404

   •   You have determined, using the first-in-first-out accounting method, the amount of
       surplus matching funds and have returned them to the City’s Matching Funds Trust
       Fund;
   •   The committee is no longer receiving contributions and making expenditures;
   •   You do not anticipate receiving contributions, repayments of outstanding loans made
       to others, or any receipts in the future, and you do not anticipate making
       expenditures in the future;
   •   You have eliminated all your debts, or declare that you have no intention or ability to
       discharge all your debts, loans received, and other obligations;
   •   You have filed all the required campaign statements disclosing all reportable
       transactions, including disposition of funds; and
   •   The committee has a zero ending cash balance on the Termination Statement (Form
       460).

How to terminate your campaign

Dispose of Campaign Funds

To terminate the campaign, the campaign bank account must have a zero balance and the
committee must be able to report a zero ending cash balance on its Termination Statement
Form 460. Campaign funds may be disposed as follows:

Candidates Elected to Office: Following the election, any funds (excluding surplus
matching funds) that remain in the campaign bank account(s) become officeholder expense
funds. Within 6 months, the candidate must redesignate the campaign committee as an
officeholder expense fund committee, or transfer the funds into an existing officeholder
expense fund committee. These funds are for expenditures associated with holding office
subject to the restrictions in the City's Campaign Finance Ordinance. Contact the CEC for
information about redesignating the campaign account as an officeholder expense account.

Defeated Candidates: Any campaign funds (excluding surplus matching funds) remaining
in your account on the closing date (December 31) of the filing period after the election
become "surplus" funds. Pursuant to Govt. Code § 89519, surplus funds must be disposed
in the following ways:
    • Payment of outstanding campaign debts.
    • Repayment of contributions to contributors.
    • Donations to any bona fide charitable, educational, civic, religious, or similar tax-
        exempt, nonprofit organization, where no substantial part of the proceeds will have a


                                                                                           50
       material financial effect on the former candidate or elected officer, any member of
       the candidate's immediate family or the campaign treasurer.
   •   Any other method allowed by Government Code Section 89519.

MATCHING FUNDS PROGRAM PARTICIPANTS must repay any surplus public funds
within 30 days after the election. Surplus public matching funds are any public funds
remaining in a participant's campaign account after the election and after expenditures
incurred have been paid. Please contact the CEC for more information about how to
calculate surplus matching funds.

File the Required Termination Documentation

After you have properly disposed of all surplus campaign funds, you may terminate your
campaign committee by filing an original and one copy of the Form 410 (Statement of
Organization Termination) with the Secretary of State. A copy of the Form 410 and an
original and one copy of your Termination Statement (Form 460) must be filed with the
CEC. (This statement must have a zero ending cash balance.)




                                                                                             51
                           CHAPTER 9
                IMPORTANT CAMPAIGN INFORMATION

Use of Public Resources for Campaign Activity is Prohibited

Candidates and their committees need to be aware of City and state laws that prohibit
certain political activities from taking place on City time, in City facilities, and with City
resources. LAMC §§ 49.7.8 & 49.5.5; Gov't Code §§ 3201-3207, 8314, 84308; 2 CCR §§
18438.1-18438.9 Penal Code §§ 424, 484-487, 504; Stanson v. Mott (1976) 17 Cal.3d
206.

No person, including a candidate, City official or employee, may:

   •   knowingly solicit campaign contributions for a political candidate or ballot measure
       campaign from any City official or employee. However, anyone may solicit political
       contributions through the mail or by other means from a significant segment of the
       public provided that the solicitation is not a subterfuge for soliciting officials or
       employees.
   •   receive, deliver, or attempt to deliver a political contribution in City Hall, any City
       office building, or any office for which the City pays the majority of the rent.
       However, space in a City office building or other City property that is routinely made
       available for rent by the public and that is rented for a campaign-related event is
       excluded from this prohibition.

No City official or employee may:

   •   use, or authorize the use of, City offices, stationery, telephones, vehicles,
       equipment, or other City property for any campaign activity.
   •   fundraise, or engage in other campaign activity, during hours for which they are paid
       by the City.
   •   participate in political activities while in uniform.

No City Commissioner and no General Manager of a City department may: solicit,
direct or receive any contribution from any person who has a legislative or administrative
matter pending before him or her, or from any person who has had such a matter pending
during the preceding 12 months. State law also bars commissioners and general managers
from soliciting or receiving contributions from persons interested in license, permit, or
entitlement for use matters including contracts for three months after the decision.
Additionally, board and commission members and general managers may be disqualified
from participating in matters if they have received more than $250 in campaign
contributions in the previous 12 months from a party or person interested in the matter.

No member of a City board or commission, who is required to file a Statement of
Economic Interests, is allowed to engage in fundraising activity on behalf of any elective
City officers, candidates for elective City offices, or any of their controlled committees,
unless the fundraising is for the commissioner's own candidacy for elective office.

City Officials and employees may:
   • endorse candidates and perform volunteer or paid political work that does not
       involve use of City resources or use of City time.
   • make political contributions to candidates and ballot measure campaigns (for or


                                                                                                 52
       against), subject to applicable laws.
   •   solicit political contributions to promote the passage or defeat of a ballot measure
       that would affect the rates of pay, hours of work, retirement, civil service or other
       working conditions. The City may, however, prohibit or limit such activity during
       working hours in City offices.


Enforcement of Campaign Violations

The CEC has the duty to conduct investigations and enforcement proceedings involving
alleged campaign finance violations. Charter § 706. When the Commission determines that
a violation has occurred, it has the authority to issue an order to:

   •   Cease and desist from committing the violation;
   •   File any reports, statements or other documents or information required by law;
   •   Pay a monetary penalty to the City's General Fund of up to $5,000 for each violation
       or three times the amount which the person failed to report properly or unlawfully
       contributed, expended, gave or received, whichever is greater. Charter § 706(c)(3).

Any person who violates any provision of the City Charter or Municipal Code relating to
campaign financing or who causes any other person to violate any such provision, or who
aids or abets any other person to violate any such provision, is liable under the provisions of
Charter Section 706.

Criminal Charges - The City Attorney may bring misdemeanor criminal charges against
any person who knowingly or willfully violates any provision of the City's campaign finance
laws. Any person who causes another person to violate any provision of these laws may
also be prosecuted for a criminal misdemeanor. Depending on the nature of a state law
violation, the District Attorney or Attorney General may also prosecute those violations.

Civil Penalties - Civil actions for monetary penalties may be filed by the City Attorney or
any resident of the City against any person who willfully or knowingly violates any provision
of the City's campaign finance laws.

A. How to File a Complaint with the City Ethics Commission

If you believe someone associated with a campaign for elective City office has violated City
or State campaign law, you may file a complaint via our 24-hour, toll free Whistleblower
Hotline -- (800) 824-4825 -- or in writing using the CEC’s complaint form available on our
web site at http://ethics.lacity.org/PDF/form_complaint.pdf or file your complaint online at
http://ethics.lacity.org/Whistleblower/complaint.cfm. A complaint should include as much
relevant information as possible: a brief description of the incident, the names of potential
witnesses, and the dates which the alleged violations occurred. Complaints may be made
anonymously. However, it is helpful to include a telephone number where you may be
contacted should more information be needed.

We will not comment on the existence or nonexistence or facts of any pending investigation
(regardless of who requests the information) to protect the integrity of the investigation and
the reputations of parties against whom complaints are filed, and to prevent political
manipulation of the complaint process. All complaints are investigated promptly. The CEC
does not have the power to grant injunctive relief.




                                                                                               53
Audits.

Pursuant to City Charter § 470(n)(2), the CEC conducts mandatory campaign audits to
ensure that campaign activity is accurately disclosed to the public, to determine a
committee's degree of compliance with applicable state and City laws, and to provide a
meaningful public record of a committee's compliance with these laws.

A. Who is Audited?

For each municipal election cycle, the CEC is required to audit the campaign of any
candidate for elective City office who raised or spent at least $100,000 and any candidate
that has received Public Matching Funds. The law also requires mandatory audits of 20
percent of the campaigns that raised or spent less than $100,000.
LAAC § 24.6.

B. How is the Audit Conducted?

At the outset of the mandatory audit, CEC auditors send candidates and/or committee
representatives a Candidate Audit Guide so that they can familiarize themselves with the
audit process. Auditors meet with candidates and/or committee representatives to discuss
the audit upon request. Auditors work closely with committee representatives throughout
the course of the audit to gather information that may help clarify issues and resolve any
potential audit findings.

Commission auditors produce a written audit report for each committee. This report
contains statements of fact about the committee's compliance with applicable laws.
Committees may provide written responses to any audit findings. Such responses are also
included as part of the final audit report.

C. Your Responsibility

City Charter Section 470(i) requires candidates and treasurers to maintain detailed
accounts, records, bills and receipts necessary to prepare campaign statements. It is also
your responsibility and that of your treasurer to make sure that all of your independent
contractors and agents obtain invoices, receipts, bills, etc. from any third parties that
provided goods and services to your committee. You must retain these documents for the
periods specified in the Political Reform Act of 1974, that is, for a period of no less than four
years from the date that the related campaign statement is filed; and provide them in a
timely manner to the CEC when requested.

D. Enforcement

Commission auditors routinely refer the audit report to the CEC's Enforcement staff, to the
City Attorney, and to the California Fair Political Practices Commission to determine whether
audit findings warrant enforcement action.




                                                                                              54
NOTES




        55
                                    APPENDICES

Appendix 1:   City Charter Campaign Finance Provisions
              (Charter § § 470 and 471)

Appendix 2:   Campaign Finance Ordinance
              (Los Angeles Municipal Code § 49.7.1 et seq.)

Appendix 3:   Government Ethics Ordinance LAMC § 49.5.5

Appendix 4:   Municipal Lobbying Ordinance LAMC § 48.05

Appendix 5:   Public Matching Funds Regulations
              (Los Angeles Administrative Code § 24.5)

Appendix 6:   Federal Elections Commission’s Brochure on “Foreign Nationals”

Appendix 7:   City Ethics Commission Infractions Policy

Appendix 8:   City Ethics Commission Disgorgement Policy Regarding Excess Contributions




                                                                                      56
              Appendix 1

City Charter Campaign Finance Provisions
        (Charter §§ 470 and 471)
                                                                         Los Angeles City Charter § 470


                                       Los Angeles City Charter
                                       ARTICLE IV – ELECTIONS

                                         CAMPAIGN FINANCE

SEC. 470          LIMITATIONS ON CAMPAIGN CONTRIBUTIONS IN CITY ELECTIONS.


         (a)      Purpose.
                  The purpose of this section is to encourage a broader participation in the
                  political process by placing limits on the amount any person may contribute
                  or otherwise cause to be available to candidates for election to the offices of
                  Mayor, City Attorney, Controller and City Council of the City of Los Angeles
                  and by regulating the disposition of unexpended contributions received by or
                  on behalf of such candidates. This section is intended to supplement the
                  Political Reform Act of 1974.

         (b)      Definitions.

                  (1)       The definitions set forth in the Political Reform Act of 1974 as
                            amended (Government Code Sections 82000 through 82055) shall
                            govern the interpretation of this section, unless otherwise specified
                            herein.

                  (2)       The term elected City office, as used herein, shall mean the offices of
                            Mayor, City Attorney, Controller and member of the City Council.

                  (3)       The term election shall include a primary nominating election, a
                            general municipal election, a special election and a recall election.

         (c)      Campaign Contribution Limitations.

                  (1)       No intended candidate for any elected City office, and no committee
                            acting on behalf of such candidate, shall solicit or accept, or cause to
                            be solicited or accepted, any contribution for use in any election for
                            such office unless and until such candidate shall have filed a
                            Declaration of Intent to Solicit and Receive Contributions in
                            connection with candidacy for a specific elected City office. That
                            declaration shall be filed with the City Ethics Commission on a form
                            prescribed by the City Ethics Commission. Once the election takes
                            place, the declaration is thereafter void. No person may file such
                            declaration for more than one elected City office nor have more than
                            one such declaration on file at the same time. A candidate may,
                            however, file a form canceling one declaration and may thereafter file
                            a new declaration.




Last revised December 13, 2006                   Page 1 of 10
                                                                         Los Angeles City Charter § 470


                  (2)       The candidate and the treasurers of the candidate’s controlled
                            committees shall file with the City Ethics Commission on a form
                            prescribed by the City Ethics Commission a statement under oath that
                            the candidate and the treasurers have read and understood Section
                            470. This statement shall be filed concurrent with the filing of the
                            Declaration of Intent to Solicit and Receive Contributions.

                  (3)       No person shall contribute a total of more than five hundred dollars
                            ($500) to any candidate for City Council and to his or her controlled
                            committee for a single election. A candidate for City Council and his
                            or her controlled committee shall not accept any contribution or
                            contributions totaling more than five hundred dollars ($500) from any
                            person for a single election. Nothing in this section is intended to limit
                            the amount a candidate may contribute to his or her campaign for City
                            Council from his or her personal funds.

                  (4)       No person shall contribute a total of more than one thousand dollars
                            ($1,000) to any candidate for Mayor, City Attorney or Controller and to
                            his or her controlled committee for a single election. A candidate for
                            Mayor, City Attorney or Controller, and or his or her controlled
                            committee, shall not accept any contribution or contributions totaling
                            more than one thousand dollars ($1,000) from any person for a single
                            election. Nothing in this section is intended to limit the amount a
                            candidate can contribute to his or her candidacy for Mayor, City
                            Attorney or Controller from his or her personal funds.

                  (5)       No person shall make to any committee (other than the candidate’s
                            controlled committee) which supports or opposes any candidate for
                            Mayor, City Attorney, Controller or City Council, and no such
                            committee shall accept from any such person, a contribution or
                            contributions totaling more than five hundred dollars ($500) in any
                            calendar year.

                  (6)       No person shall make a contribution in connection with a single
                            election for an elected City office which would cause the aggregate
                            amount of such contributions by that person to exceed a sum equal to
                            five hundred dollars ($500) multiplied by the number of City Council
                            offices appearing on the ballot at that election plus one thousand
                            dollars ($1,000) multiplied by the number of City-wide offices
                            appearing on the ballot at that election, but in no case less than one
                            thousand dollars ($1,000), in connection with all candidates in that
                            election seeking election to all elected City offices; provided, however,
                            that a candidate shall not be limited by this Subsection (6) in the
                            amount he or she may contribute or expend in connection with his or
                            her own campaign, subject to the provisions of Subsection (c)(10) of
                            this section.



Last revised December 13, 2006                    Page 2 of 10
                                                                        Los Angeles City Charter § 470


                  (7)       Contributions From Persons Other than Individuals.

                            (A)   No candidate for City Council, together with the controlled
                                  committee of such candidate, shall accept more than a total of
                                  one hundred fifty thousand dollars ($150,000) in contributions
                                  from persons, other than individuals, in connection with any
                                  election.

                            (B)   No candidate for City Attorney or Controller, together with the
                                  controlled committee of such candidate, shall accept more than
                                  a total of four hundred thousand dollars ($400,000) in
                                  contributions from persons, other than individuals, in
                                  connection with any election.

                            (C)   No candidate for Mayor, together with the controlled committee
                                  of such candidate, shall accept more than a total of nine
                                  hundred thousand dollars ($900,000) in contributions from
                                  persons, other than individuals, in connection with any election.

                            (D)   If a candidate for elected City office declines matching funds
                                  and receives contributions or spends an amount exceeding the
                                  applicable expenditure ceilings, this subsection shall not apply
                                  to any of the candidates for the same office.

                  (8)       No person shall make, and no person or candidate shall solicit or
                            accept any loan of more than five hundred dollars ($500) for use in
                            connection with an election for City Council, or of more than one
                            thousand dollars ($1,000) for use in connection with an election for
                            Mayor, City Attorney or Controller. Further, no person shall make, and
                            no person or candidate shall solicit or accept any loan for use in
                            connection with an election for City office for a period of more than 30
                            days. Loans to a candidate or to a candidate’s controlled committees
                            shall be counted against the contribution limitations applicable to the
                            candidate. A candidate is not prohibited from obtaining a personal
                            loan of any amount from a licensed financial lending institution in the
                            regular course of business, unless the loan is made for political
                            purposes. This Subsection (8) shall not limit the amount or duration of
                            loans from the candidate to his or her own campaign.

                  (9)       Any contributions solicited or accepted pursuant to this section shall
                            be expended only in connection with the candidacy for the office
                            specified in the candidate’s Declaration of Intent to Solicit and
                            Receive Contributions. Contributions solicited or accepted pursuant to
                            this section for one individual shall not be expended for the candidacy
                            of any other individual seeking City office or in support of or in
                            opposition to any City ballot measure. No candidate, committee



Last revised December 13, 2006                   Page 3 of 10
                                                                           Los Angeles City Charter § 470


                            controlled by a candidate, or elected City officer shall use contributed
                            funds to make any contribution to any other candidate running for
                            office or to any committee supporting or opposing a candidate for
                            office. Provided, however, a candidate shall not be prohibited from
                            making a contribution from his or her own personal funds to his or her
                            own candidacy, to the candidacy of any other candidate for elected
                            City office or in support of or in opposition to any City ballot measure.

                  (10)      No candidate shall expend or contribute more than thirty thousand
                            dollars ($30,000) in personal funds in connection with his or her
                            campaign for elected City office unless and until the following
                            conditions are met.

                            (A)    Notice of the candidate’s intent to so expend or contribute shall
                                   be provided by registered mail to all opponents and to the City
                                   Ethics Commission at least 30 days in advance of the election,
                                   specifying the amount intended to be expended or contributed.

                            (B)    All personal funds to be expended or contributed by the
                                   candidate in excess of thirty thousand dollars ($30,000) shall
                                   first be deposited in the candidate’s campaign contribution
                                   checking account at least 30 days before the election. Each
                                   opponent of any candidate who has complied with the above
                                   conditions shall be permitted to solicit and receive, and
                                   contributors to each such opponent may make, contributions in
                                   excess of the limitations established in Subsections (c)(3) and
                                   (4) until such opponent has raised contributions in amounts
                                   above such limits equal to the amount of personal funds
                                   deposited by the candidate in his or her campaign contribution
                                   checking account.

                  (11)      No elective City officer or candidate for elective City office, nor any of
                            his or her City controlled committees, shall solicit or accept any
                            contribution to the officer or candidate, or to any of his or her City
                            controlled committees, from any lobbyist or lobbying firm registered to
                            lobby the City office for which the candidate is seeking election, or the
                            current City office, commission, department, bureau or agency of the
                            candidate or officer. No person required by ordinance to be
                            registered as a lobbyist or lobbying firm shall make any contribution to
                            an elective City officer or candidate for elective City office, or to any of
                            his or her City controlled committees, if the lobbyist or lobbying firm is
                            required by ordinance to be registered to lobby the City office for
                            which the candidate is seeking election, or the current City office,
                            commission, department, bureau or agency of the candidate or
                            officer.




Last revised December 13, 2006                    Page 4 of 10
                                                                     Los Angeles City Charter § 470


         (d)      Cash Contributions.
                  No person shall make, and no candidate or committee shall solicit or accept,
                  any cash contribution in excess of twenty-five dollars ($25).

         (e)      Anonymous Contributions.
                  Total anonymous contributions to a candidate or committee which exceed in
                  the aggregate two hundred dollars ($200) with respect to a single election
                  shall not be used by the candidate or committee for whom such contributions
                  were intended, but instead, such excess shall be paid promptly to the City
                  Treasurer for deposit in the General Fund of the City.

         (f)      Adjustment of Limits.
                  The amounts specified in Subsections (c) and (d) of this section may be
                  modified from time to time by ordinance to reflect changes in the consumer
                  price index for the Los Angeles-Long Beach metropolitan statistical area.

         (g)      Campaign Contribution Checking Account.
                  No more than one campaign contribution checking account shall be
                  established by each candidate for elected City office, and by each committee
                  supporting or opposing such candidate. The account shall be established at
                  an office of a bank or savings and loan institution located in the City of Los
                  Angeles. Upon opening such account, the candidate shall file with the City
                  Ethics Commission within ten days of opening the campaign bank account,
                  the name of the bank or savings and loan institution and the account
                  number. Funds shall only be disbursed from such account by checks signed
                  by the candidate, treasurer or designated agent of the treasurer. A
                  candidate, treasurer or designated agent of the treasurer shall deposit into
                  the campaign checking account all contributions received in connection with
                  a City election. A candidate, treasurer or designated agent of the treasurer
                  shall pay all campaign expenditures for a City election with monies from this
                  campaign checking account.
                  If a candidate has other controlled committees and such committees have
                  checking accounts, the candidate shall notify the City Ethics Commission in
                  writing of these committees and the names and addresses of the banks or
                  savings and loan institutions and the account numbers of any such
                  accounts. A candidate shall notify the City Ethics Commission of these
                  committees, the banks or savings and loan institutions, and the account
                  numbers concurrent with the filing of the Declaration of Intent to Solicit and
                  Receive Contributions. If committees are thereafter formed or accounts
                  thereafter opened, then the candidate shall notify the City Ethics
                  Commission on the next regular business day on which the office is open.
                  No contribution shall be commingled with the personal funds of the
                  candidate or any other person.




Last revised December 13, 2006                Page 5 of 10
                                                                      Los Angeles City Charter § 470


                  This subsection shall not prohibit the establishment of savings accounts or
                  certificates of deposit, provided that no campaign expenditures may be
                  made therefrom.

         (h)      Treasurer.
                  A candidate having campaign committees for elected City office shall
                  appoint a treasurer of each committee. No expenditure shall be made by or
                  on behalf of a committee without the authorization of the treasurer or that of
                  his or her designated agents. No contribution or expenditure shall be
                  accepted or made by or on behalf of a committee at a time when there is a
                  vacancy in the office of treasurer. It shall be the duty of the candidate and
                  the treasurer to approve and authorize such payments and to retain such
                  authorizations, detailed accounts, records, bills and receipts.

         (i)      Accountability.
                  The candidate and the treasurer shall maintain such detailed accounts,
                  records, bills and receipts as are necessary to prepare campaign
                  statements.
                  The candidate and the treasurer shall retain the detailed accounts, records,
                  bills and receipts for the periods specified in the Political Reform Act of 1974
                  as amended. Every candidate and committee shall make available on
                  demand to any public officer having legal authority to enforce this section,
                  details of checking and financial accounts of each committee controlled by
                  the candidate and all records supporting such details.

         (j)      Petty Cash Fund.
                  Subsection (g) notwithstanding, a candidate, campaign treasurer and other
                  designated agents authorized to issue checks on a campaign contribution
                  checking account may disburse to the candidate or committee establishing
                  the checking account an amount not greater than fifty dollars ($50) per week
                  to be used for petty cash purposes by the candidate or committee.

         (k)      Assumed Name Contributions.
                  No contribution shall be made, directly or indirectly, by any person or
                  combination of persons, acting jointly in a name other than the name by
                  which they are identified for legal purposes, nor in the name of another
                  person or combination of persons. No person shall make a contribution in
                  his, her or its name of anything belonging to another person or received from
                  another person on the condition that it be used as a contribution. In the
                  event it is discovered by a candidate or committee treasurer that a
                  contribution has been received in violation of this subsection, the candidate
                  or treasurer shall promptly pay the amount received in violation of this
                  subsection to the City Treasurer for deposit in the General Fund of the City.




Last revised December 13, 2006                 Page 6 of 10
                                                                        Los Angeles City Charter § 470


         (l)      Campaign Expenditures - Uncontrolled by Candidate or Committee.
                  Persons or organizations not subject to the control of a candidate or
                  committee but who make independent expenditures for or against a
                  candidate or committee shall comply with the applicable disclaimer
                  requirements established by ordinance.

         (m)      Suppliers of Goods and Services – Disclosure of Records Required.
                  No person who supplies goods or services or both goods and services to a
                  candidate or committee for use in connection with the campaign for an
                  elected City office shall knowingly refuse to divulge or disclose to the City
                  Ethics Commission or to any public officer having legal authority to enforce
                  this section, the details and the records supporting such details of any
                  expenditures made by the candidate or committee in payment for such
                  goods or services or both.

         (n)      Duties of City Ethics Commission.
                  The City Ethics Commission shall administer the provisions of this section. In
                  addition to other duties required under the terms of this section, the City
                  Ethics Commission shall:

                  (1)       Report apparent violations of this section and applicable state law to
                            the City Attorney.

                  (2)       Conduct audits and investigations of reports and statements filed by
                            candidates and committees supporting or opposing candidates for
                            City offices as required under both the Political Reform Act of 1974 as
                            amended and this section. The City Ethics Commission shall employ
                            investigators where necessary to fully investigate candidate spending
                            and reporting.

                  (3)       Enforce or cause to be enforced the provisions of this section
                            pursuant to Section 90002(c) of the Government Code. The City
                            Ethics Commission may subpoena witnesses, compel their
                            attendance and testimony, administer oaths and affirmations, take
                            evidence and require by subpoena the production of any books,
                            papers, records or other items necessary to the audit and
                            investigation of candidates for election to City office.

         (o)      Enforcement.

                  (1)       Criminal Enforcement. Any person who knowingly or willfully violates
                            any provisions of this section is guilty of a misdemeanor. Any person
                            who causes any other person to violate any provision of this section,
                            or who aids and abets any other person in the violation of any
                            provision of this section, shall be liable under the provisions of this
                            section. Prosecution for violation of any provision of this section must



Last revised December 13, 2006                   Page 7 of 10
                                                                         Los Angeles City Charter § 470


                            be commenced within two years after the date on which the violation
                            occurred.

                  (2)       Civil Enforcement.

                            (A)   Any person who intentionally or negligently violates any
                                  provision of this section shall be liable in a civil action brought
                                  by the City Attorney or by a person residing within the City.
                                  Where no specific civil penalty is provided, a person may be
                                  liable for an amount up to two thousand dollars ($2,000) for
                                  each violation.

                            (B)   Any person who intentionally or negligently makes or receives
                                  a contribution, or makes an expenditure, in violation of any
                                  provision of this section shall be liable in a civil action brought
                                  by the City Attorney or by a person residing within the City for
                                  an amount up to three times the amount of the unlawful
                                  contribution or expenditure.

                            (C)   If two or more persons are responsible for any violation, they
                                  shall be jointly and severally liable.

                            (D)   Any person, before filing a civil action pursuant to this
                                  subsection, must first file with the City Attorney a written
                                  request for the City Attorney to commence the action. The
                                  request shall contain a statement of the grounds for believing a
                                  cause of action exists. The City Attorney shall respond within
                                  40 days after receipt of the request, indicating whether the City
                                  Attorney intends to file a civil action. If the City Attorney
                                  indicates in the affirmative, and files suit within 40 days
                                  thereafter, no other action may be brought unless the action
                                  brought by the City Attorney is dismissed without prejudice.

                            (E)   Not more than one judgment on the merits with respect to any
                                  violation may be obtained under this subsection. Actions
                                  brought for the same violation or violations shall have
                                  precedence for purposes of trial in the order of the time filed.
                                  Such actions shall be dismissed once judgment has been
                                  entered or a settlement approved by the court in a previously
                                  filed action. The court may dismiss a pending action without
                                  prejudice to any other action for failure of the plaintiff to
                                  proceed diligently and in good faith. The action may be so
                                  dismissed on motion by the City Attorney or any plaintiff in an
                                  action based on the same violation.




Last revised December 13, 2006                   Page 8 of 10
                                                                         Los Angeles City Charter § 470


                            (F)    In determining the amount of liability under this subsection, the
                                   court may take into account the seriousness of the violation
                                   and the degree of culpability of the defendant.

                                   (i)    No civil action alleging a violation of Subsection (c) of
                                          this section, in connection with a contribution or
                                          expenditure shall be filed more than four years after an
                                          audit could begin as set forth in the Political Reform Act
                                          of 1974 as amended.

                                   (ii)   No civil action alleging a violation of any provisions of
                                          this section other than Subsection (c) of this section
                                          shall be filed more than four years after the date of the
                                          violation.

         (p)      Effect of Violation on Outcome of Election.

                  (1)       If a candidate is convicted of a misdemeanor violation of any
                            provision of this section, the court shall make a determination as to
                            whether the violation had a material effect on the outcome of the
                            election. If the court finds such a material effect, then:

                            (A)    if such conviction becomes final before the date of the election,
                                   the votes for such candidate shall not be counted, and the
                                   election shall be determined on the basis of the votes cast for
                                   the other candidates in that race;

                            (B)    if such conviction becomes final after the date of the election,
                                   and if such candidate was declared to have been elected, then
                                   such candidate shall not assume office, the office shall be
                                   deemed vacant and shall be filled as otherwise provided in the
                                   Charter;

                            (C)    if such conviction becomes final after the candidate has
                                   assumed office, then the candidate shall be removed from
                                   office, the office shall be deemed vacant and shall be filled as
                                   otherwise provided in the Charter; and

                            (D)    the person so convicted shall be ineligible to hold any elected
                                   City office for a period of five years after the date of such
                                   conviction.

                  (2)       The City Clerk shall not issue any certificate of nomination or election
                            to any candidate until his or her pre-election campaign statements
                            required by the Political Reform Act of 1974, as amended, or if no
                            campaign statement is required, the written declaration permitted



Last revised December 13, 2006                   Page 9 of 10
                                                                      Los Angeles City Charter § 470


                            under Section 84205 of the Government Code, have been filed in the
                            form and at the place required by the Political Reform Act of 1974.

         (q)      Verification.
                  All declarations, reports and statements filed under this section shall be
                  signed and verified by the filer under penalty of perjury. The candidate and
                  any person signing declarations, reports and statements under this provision
                  shall read, know and understand the contents of all such declarations,
                  reports and statements.

         (r)      Injunction.
                  The City Attorney on behalf of the people of the City of Los Angeles or any
                  person residing in the City of Los Angeles may sue for injunctive relief to
                  enjoin violations or to compel compliance with the provisions of this section.
                  The Court may award a plaintiff or defendant who prevails his or her costs of
                  litigation, including reasonable attorney’s fees; provided, however, that no
                  such award may be granted against the City of Los Angeles.

         (s)      Severability.
                  If any provision or portion of this section is for any reason held to be invalid
                  or unconstitutional by the decision of any court, such decision shall not affect
                  the remaining portions of this section.




Last revised December 13, 2006                 Page 10 of 10
                                                                         Los Angeles City Charter § 471


                                       Los Angeles City Charter
                                       ARTICLE IV – ELECTIONS

                                         CAMPAIGN FINANCE

SEC. 471          PUBLIC MATCHING FUNDS AND CAMPAIGN EXPENDITURE
                  LIMITATIONS.


         (a)      Findings and Purposes.

                  (1)       Monetary contributions to political campaigns are a legitimate form of
                            participation in the American political process, but the financial
                            strength of certain individuals or organizations should not permit them
                            to exercise a disproportionate or controlling influence on the election
                            of candidates.

                  (2)       Therefore, this section is enacted to accomplish the following
                            purposes:

                            (A)   To assist serious candidates in raising enough money to
                                  communicate their views and positions adequately to the public
                                  without excessive expenditures or contributions, thereby
                                  promoting public discussion of the important issues involved in
                                  political campaigns.

                            (B)   To limit overall expenditures in campaigns, thereby reducing
                                  the pressure on candidates to raise large campaign funds for
                                  defensive purposes, beyond the amount necessary to
                                  communicate reasonably with voters.

                            (C)   To provide a source of campaign financing in the form of
                                  limited public matching funds.

                            (D)   To substantially restrict fund-raising in non-election years.

                            (E)   To increase the value to candidates of smaller contributions.

                            (F)   To reduce the excessive fund-raising advantage of incumbents
                                  and thus encourage competition for elective office.

                            (G)   To help restore public trust in governmental and electoral
                                  institutions.




Last revised December 13, 2006                        Page 1 of 2
                                                                      Los Angeles City Charter § 471




(b)      Matching Funds and Expenditure Limitations Authorization.
         The City shall also adopt by ordinance limitations on campaign expenditures by
         candidates for elected City office who qualify for and accept public matching funds.
         The City shall adopt by ordinance regulations concerning the use of public funds to
         partially finance campaigns for elected City office through a system of matching
         public funds for qualifying campaign contributions. Such ordinances may be
         amended to further the purposes of this section of the Charter.

(c)      Appropriation of Funds.

         (1)      The City Council shall appropriate two million dollars ($2,000,000) per fiscal
                  year for public matching funds, subject to the limitations in subsection 2,
                  below. The Council shall appropriate such funds for each following fiscal
                  year. The amount of such appropriation shall be adjusted for cost of living
                  changes based on the percentage increase or decrease in the Consumer
                  Price Index (for all items other than housing) for the Los Angeles-Long
                  Beach metropolitan statistical area.

         (2)      All such funds shall be appropriated into a trust fund established by the
                  Council by ordinance with interest accruing to the fund. The amount in the
                  trust fund shall not exceed eight million dollars ($8,000,000) in any fiscal
                  year, and the amount otherwise required herein to be appropriated annually
                  to that fund shall be reduced by the amount estimated as necessary to
                  comply with such limitation. Such amount shall be adjusted for cost of living
                  changes based on the percentage increase or decrease in the Consumer
                  Price Index (for all items other than housing) for the Los Angeles-Long
                  Beach metropolitan statistical area.

         (3)      If there are insufficient funds to provide the maximum matching funds
                  available to a candidate in any election, as specified by ordinance, the
                  limitations on total contributions from persons other than individuals imposed
                  by Section 470 shall not apply to any of the candidates for the same office.

         (4)      The funds used to make payments for matching funds shall come
                  exclusively from City sources of revenues.




Last revised December 13, 2006                     Page 2 of 2
                 Appendix 2

        Campaign Finance Ordinance
(Los Angeles Municipal Code § 49.7.1 et seq.)
        Campaign Finance Ordinance

♦♦♦Los Angeles Municipal Code Section 49.7.1 et seq.

                                       Last Revised May 20, 2007




                                                         Prepared by
                                        City Ethics Commission



                                                        CEC



                                               Los Angeles


                                  200 North Spring Street, 24th Floor
                                             Los Angeles, CA 90012
                                                    (213) 978-1960
                                                TTY (213) 978-2609
                                              http://ethics.lacity.org
                                                                                                                                     .




                               Los Angeles Campaign Finance Ordinance
                                        TABLE OF CONTENTS



SEC. 49.7.1               Relation of Regulations to Sections 470 and 609 (e) of the City
                          Charter ..................................................................................................1

SEC. 49.7.1.1            Definitions ..............................................................................................1

  Candidate or committee agent ........................................................................................1
  Elective city officer...........................................................................................................1
  Independent expenditure.................................................................................................1
  Member communications ................................................................................................2
  Non-candidate spending..................................................................................................2

SEC. 49.7.1.2            Cost of Living Adjustment ......................................................................2

SEC. 49.7.2              Aggregation of Payments.......................................................................3

SEC. 49.7.3              Family Contributions ..............................................................................4

SEC. 49.7.4              Return of Contributions ..........................................................................4

SEC. 49.7.5              Money Received by Officials Treated as Contribution, Income
                         or Gifts ...................................................................................................4

SEC. 49.7.6              Loans .....................................................................................................5

SEC. 49.7.7              Restrictions on When Contributions May Be Received..........................5

SEC. 49.7.8              Solicitation and Transmittal of Campaign Contributions ........................6

SEC. 49.7.9              Training for Candidates and Treasurers ................................................8

SEC. 49.7.10             Committee or Individual Filing a Recall Petition or Intitiative..................8

SEC. 49.7.11             Campaign Disclosure, Reporting & Recordkeeping ...............................8

SEC. 49.7.12             Officeholder Controlled Funds .............................................................10

SEC. 49.7.13             Expenditure Ceilings ............................................................................18

SEC. 49.7.14             Expenditure Ceilings Lifted ..................................................................19




                                                                  ii
                                                                                                                         .


SEC. 49.7.15     Notification by Non-Participating Candidate Regarding Expenditure
                 Ceiling Amounts...................................................................................19

SEC. 49.7.16     Time Periods for Expenditures.............................................................20

SEC. 49.7.17     Compliance Costs................................................................................20

SEC. 49.7.18     Candidate Acceptance or Rejection of Matching Funds ......................20

SEC. 49.7.19     Qualification Requirements ..................................................................21

SEC. 49.7.20     Matching Funds Formula .....................................................................22

SEC. 49.7.21     Candidate Request for Payment. .........................................................23

SEC. 49.7.22     Maximum Funds Available to Candidate..............................................23

SEC. 49.7.23     Payments to Candidates ......................................................................25

SEC. 49.7.24     Contribution Limitations to Independent Expenditure Committees.......25

SEC. 49.7.25     Reproduction of Materials. ...................................................................25

SEC. 49.7.26     Notice of Payments for Independent Expenditures and
                 Non-Behested Member Communications ............................................25

SEC. 49.7.26.1   Behested Expenditures ........................................................................27

SEC. 49.7.26.2   Limitations on Certain Expenditures by Corporate or Union
                 Treasuries ............................................................................................30

SEC. 49.7.26.3   Disclaimers on Campaign Communications .........................................30

SEC. 49.7.26.4   Determination of Eligibility for Additional Candidate Benefits Based on
                 Declarations of Payments for Independent Expenditure and
                 Uncoordinated Member Communications ............................................32

SEC. 49.7.27     Certain Provisions of Charter Section 470 Maintained.........................33

SEC. 49.7.28     Enforcement.........................................................................................33

SEC. 49.7.29     Late Filing Penalties.............................................................................34

SEC. 49.7.30     Severability ..........................................................................................35

SEC. 49.7.31     Operative Date.....................................................................................35



                                                         iii
                                                                    Los Angeles Campaign Finance Ordinance




                               Campaign Finance Ordinance
                            Los Angeles Municipal Code Chapter IV, Article 9.7
                            Added by Ordinance No. 165607, effective 4/21/90.



SEC. 49.7.1             Relation of Regulations to Sections 470 and 609(e) of the City
                        Charter
                        Amended by Ordinance No. 175344, effective 8/16/03.

The provisions of this article relating to contribution limitations are in addition to and
supplement the regulations contained in Charter Sections 470 and 609(e). The provisions
of this Article relating to public financing and expenditure limitations are adopted pursuant
to the authorization contained in Charter Section 471.


SEC. 49.7.1.1           Definitions
                        Added by Ordinance No. 175344, effective 8/16/03.

The following terms used in this article shall have the meanings set forth below. Except
as otherwise provided here, the terms and provisions of this article shall have the
meanings and 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.

“Candidate or Committee Agent” means any person who has express or implied
authority to make or to authorize the making of expenditures on behalf of the candidate.
There shall be a rebuttable presumption that the following have that authority: current or
former officers of the candidate-controlled committee, employees of the campaign,
persons who have received compensation or reimbursement from the campaign, or any
person who has been placed in a position within the campaign organization where it would
reasonably appear that in the ordinary course of campaign-related activities he or she may
authorize expenditures. A candidate’s agent is also any person who is serving or has
served in an advisory, decision-making, or strategic role with a candidate’s campaign, with
or without compensation, where that person’s duties and/or actions reflect or require direct
knowledge of the candidate’s campaign strategy, plans, or needs.

“Elective City Officer” means any person who is a City Council Member, City Attorney,
Controller or Mayor, whether appointed or elected.

“Independent expenditure” means an expenditure made by any person in connection
with a communication that expressly advocates the election or defeat of a clearly identified
candidate; 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
committee.



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“Member communications” means payments made pursuant to Government Code
Section 85312.

        (a)     For purposes of this article, payments for member communications that are
                behested by candidates, with the exception of payments for a regularly
                published newsletter or periodical limited solely to individual members not
                exceeding the amount of payments regularly made to publish a regular
                newsletter or periodical, shall be considered contributions to that candidate
                or candidate controlled committee for purposes of the City contribution limits
                contained in Charter Section 470 (c) and City reporting requirements.

        (b)     For purposes of this article, member communications that are not behested
                by a candidate, a candidate’s controlled committee, or an agent of a
                candidate or a candidate’s controlled committee are not considered
                contributions to a candidate.

        (c)     Member communications that are not behested by a candidate, a
                candidate’s controlled committee, or an agent of a candidate or a
                candidate’s controlled committee and are not payments for a regularly
                published newsletter or periodical limited solely to individual members and
                do not exceed the amount of payments regularly made to publish a regular
                newsletter or periodical, are considered expenditures and are required to be
                reported pursuant to Section 49.7.26 of this Code.

“Non-Candidate Spending” means any combination of independent expenditures and/or
member communications that are not behested by a candidate.


SEC. 49.7.1.2           Cost of Living Adjustment
                        Added by Ordinance No. 175344, effective 8/16/03.

Every five years, the City Ethics Commission shall review whether the expenditure
limitations contained in Sections 49.7.12 A 6 and 49.7.13 and/or the contribution
limitations contained in Charter Section 470 (c) should be adjusted to reflect changes in
the Consumer Price Index (CPI) for the Los Angeles-Long Beach Metropolitan Statistical
Area. The first review shall begin at the end of the calendar year 2007. If the contribution
and/or expenditure limitations are not adjusted during any review period, the limitations
may be adjusted in a subsequent five-year review period, up to the overall increase in the
CPI since the last adjustment. Any change to the contribution and/or expenditure
limitations shall be effective for any subsequent election for which the fundraising period
has not yet opened as provided in Section 49.7.7. The City Ethics Commission shall
forward a report with its findings to the City Council by March 1, following each review.




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SEC. 49.7.2             Aggregation of Payments
                        Amended by Ordinance No. 175344, effective 8/16/03.

For the purposes of the contribution limitations contained in Charter Section 470 and this
article, the following shall apply:

Contributions and/or expenditures from two or more persons will be aggregated and
considered to be made by a single person for the purposes of the contribution limitations
and other provisions contained in Charter Section 470 and this article, if any of the
circumstances listed below is applicable:

A.      Contributions and/or expenditures from a person will be aggregated with
        contributions and/or expenditures from any other person that controls his, her, or its
        contribution or expenditure activity.

B.      Contributions and/or expenditures from a sponsored committee, as defined in
        Government Code Section 82048.7, shall be aggregated with contributions and/or
        expenditures from its sponsoring organization.

C.      Contributions and/or expenditures from an entity shall be aggregated with
        contributions and/or expenditures from any other entity that has the same
        individuals constituting a majority of the members of each entity’s board of
        directors.

D.      Contributions and/or expenditures from an entity shall be aggregated with
        contributions and/or expenditures from any other entity that has the same officers
        or with whom it shares a majority of officers. For the purposes of this subdivision
        an officer does not include an individual who serves only as a member of the
        entity’s board of directors.

E.      Contributions and/or expenditures from a corporation or limited liability company
        shall be aggregated with contributions and/or expenditures from any other
        corporation or limited liability company that has the same majority shareholder
        and/or member or that holds a majority of voting rights in that corporation or limited
        liability company.

F.      Contributions and/or expenditures from a corporation shall be aggregated with
        contributions and/or expenditures from any parent or subsidiary corporation,
        provided that at least one of the corporations is not publicly traded.

G.      Contributions and/or expenditures from an individual shall be aggregated with
        contributions and/or expenditures from any corporation, limited liability company,
        firm, joint venture, syndicate, business trust, company or other business entity not
        described in Subdivisions H or I below, in which the individual owns an investment
        of 50% or more or holds a majority of voting rights.




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H.      Contributions and/or expenditures from an individual shall be aggregated with
        contributions and/or expenditures from any sole proprietorship the individual owns.

I.      Contributions and/or expenditures from a general partner shall be aggregated with
        contributions and/or expenditures from any general or limited partnership in which
        the general partner owns an investment of 50% or more or in which the general
        partner holds a majority of voting rights.


SEC. 49.7.3             Family Contributions

A.      Contributions by a husband and wife shall be treated as separate contributions.

B.      Contributions by children under eighteen years of age shall be treated as
        contributions by their parents and attributed proportionately to each parent (one-
        half to each parent or the total amount to a single custodial parent).


SEC. 49.7.4             Return of Contributions

A contribution shall not be considered to be received if it is not negotiated, deposited, or
utilized, and is returned to the donor within 14 days of receipt.


SEC. 49.7.5             Money Received by Officials Treated as Contribution, Income or
                        Gifts
                        Amended by Ordinance No. 175344, effective 8/16/03.

Any payments received by an elective City officer, candidate for elective City office or any
committee controlled by the officer or candidate shall be considered either a campaign
contribution, income, gift or payment for legislative or governmental purposes within the
meaning of Government Code Section 82015(b)(2)[(B)](iii). All campaign contributions
received by those persons shall be subject to the provisions of Charter Sections 470 and
471 and this article unless the contributions are used exclusively for an election in some
other jurisdiction. All income and gifts shall be subject to the relevant provisions of the
City Charter, this Article, the Political Reform Act (Government Code Sections 87100, et
seq.), as amended, and other relevant statutes and ordinances. All payments for
legislative or governmental purposes within the meaning of Government Code Section
82015(b)(2)[(B)](iii) other than payments exempted by Section 49.7.12 A of this Code shall
be subject to the Officeholder Account provisions of Section 49.7.12 of this Code.




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SEC. 49.7.6             Loans
                        Amended by Ordinance No. 172942, effective 1/21/00
                        Amended by Ordinance No. 175344, effective 8/16/03.

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 Charter Section 470 and
        this article.

B.      Every loan to a candidate or the candidate's controlled committee shall be by
        written agreement which shall be filed with the candidate's or committee's
        campaign statement on which the loan is first reported.

C.      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 and which is secured or guaranteed shall not be considered to be a
        contribution within the meaning of the contribution limitations of Charter Section
        470 and this article.

D.      Extensions of credit (other than loans referred to in Subsection C) for a period of
        more than 30 days are subject to the contribution limitations of this Article.

E.      The total balance of all personal loans from a candidate to his or her controlled
        committee for elective City office remaining after election to City office in excess of
        the following amounts shall be considered a direct contribution to that candidate’s
        committee:

        1.      $25,000 for candidates for City Council;

        2.      $100,000 for candidates for the offices of Mayor, City Attorney, or Controller.

F.      Any balance of any personal loan from a matching funds candidate to his or her
        controlled committee remaining after election to City office shall be considered a
        direct contribution from the candidate to his or her controlled campaign committee if
        that candidate exceeded an applicable spending limit during an election.


SEC. 49.7.7             Restrictions on When Contributions May Be Received
                        Amended by Ordinance No. 175344, effective 8/16/03.

A.      No candidate for City Council, nor the controlled committee of that candidate, shall
        solicit or accept or cause to be solicited or accepted any contribution more than 18
        months before the date of the election at which the candidate seeks office. No
        candidate for Mayor, City Attorney or Controller, nor the controlled committee of
        that candidate shall solicit or accept or cause to be solicited or accepted any
        contribution more than 24 months before the date of the election at which the
        candidate seeks office.



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B.      No candidate for elective City office, or his or her controlled committee, shall solicit
        or receive or cause to be solicited or received a contribution to his or her own
        campaign committee from any person later than nine months after the date of the
        election. Contributions solicited or received or caused to be solicited or received
        by a candidate for elective City office, or his or her controlled committee, following
        his or her election shall be used to retire debt except to the extent prohibited by
        Sections 49.7.6 and 49.7.12.


SEC. 49.7.8             Solicitation and Transmittal of Campaign Contributions
                        Amended by Ordinance No. 172890, effective 12/16/99.
                        Amended by Ordinance No. 175817, effective 4/11/04.

A.      No person, including but not limited to any City official, employee, or candidate for
        elective City office, shall, directly or indirectly, knowingly solicit campaign
        contributions from any City official or employee to support or oppose the candidacy
        of any person for elective City office or for the recall of any elective City officer, or
        for an officeholder expense account. Nothing in this subsection shall prohibit any of
        these persons from communicating through the mail or by other means requests for
        campaign funds or contributions to a significant segment of the public, which may
        include officers or employees of the City.

B.      No member of a board or commission of the City, including a member of the Board
        of Public Works, or general manager of any City department shall solicit, direct or
        receive any contribution from any person, or his or her agent, who has a
        proceeding involving any legislative or administrative action pending before the
        official or has had such a matter pending during the preceding 12 months.

C.      No member of a City board or commission who is required to file a Statement of
        Economic Interests shall engage in prohibited fundraising activity on behalf of an
        elective City officer, candidate for elective City office, or any of his or her controlled
        committees.

        1.      For purposes of this subsection, a “controlled committee” means any City
                committee controlled by an elective City officer or candidate for elective City
                office, including any City campaign, officeholder, legal defense fund, or ballot
                measure committee.

        2.      For purposes of this subsection, “prohibited fundraising activity” means:

                (a)     Requesting, either orally or in writing, that another person make a
                        contribution;

                (b)     Inviting a person to a fundraising event;

                (c)     Supplying names to be used for invitations to a fundraising event;



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                (d)     Allowing his or her signature to appear on a solicitation for
                        contributions or invitation to a fundraising event;

                (e)     Allowing his or her official title to be used on a solicitation for
                        contributions or invitation to a fundraising event;

                (f)     Allowing his or her name to be used on a solicitation for contributions
                        or invitation to a fundraising event;

                (g)     Providing the use of his or her home or business to hold a fundraising
                        event;

                (h)     Paying for at least a majority of the costs of a fundraising event;

                (i)     Hiring another person to conduct a fundraising event;

                (j)     Delivering a contribution, other than his or her own, either in person or
                        by mail in a manner in which he or she communicates his or her
                        identity to the elective City officer, candidate for elective City office, or
                        any of his or her agents; or

                (k)     Acting as an agent or intermediary in connection with the making of a
                        contribution.

        3.      For purposes of this subsection, “fundraising event” means an event
                designed primarily for political fundraising at which contributions for an
                elective City officer, candidate for elective City office, or any of his or her
                controlled committees are solicited, delivered or made.

        4.      The provisions of this subsection shall not apply to a member of a City board
                or commission who is engaging in fundraising activity on behalf of his or her
                own candidacy or controlled committee for elective office.

D.      No person shall receive or personally deliver or attempt to deliver a contribution in
        City Hall, or other City office building, or in any office for which the City pays the
        majority of the rent. Space in a City office building or other City property that is
        routinely made available for rent by the public and that is rented for a campaign
        related event is excluded from this prohibition.

        1.      For purposes of this subsection, “personally deliver” means to deliver a
                contribution in person or to cause a contribution to be delivered in person by
                an agent or intermediary;




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        2.      For purposes of this subsection, “receive” includes the receipt of a campaign
                contribution delivered in person but does not include a campaign
                contribution received by mail if it is forwarded to the campaign treasurer of
                the candidate, or his or her controlled committee, within seven working days
                of its receipt.


SEC. 49.7.9             Training for Candidates and Treasurers
                        Amended by Ordinance No. 172890, effective 12/16/99.

Every City candidate for Mayor, Controller, City Attorney and City Council, and every
treasurer of such candidate’s controlled committee, shall attend a training program
conducted or sponsored by the City Ethics Commission prior to the election at which the
candidate’s name will appear on the ballot.


SEC. 49.7.10            Committee or Individual Filing a Recall Petition or Initiative

In the event a recall petition or are [sic] initiative petition relating to City law is filed, the
committee or individual filing the petition shall be subject to the same campaign disclosure
provisions as are applicable to candidates for elective City office.


SEC. 49.7.11            Campaign Disclosure, Reporting & Recordkeeping
                        Added by Ordinance No. 172344, effective 8/16/99.
                        Added by Ordinance No. 174081, effective 8/11/01.
                        Amended by Ordinance No. 175344, effective 8/16/03.
                        Amended by Ordinance No. 178587, effective 5/20/07.

A.      Additional Pre-Election Campaign Statements. In addition to the campaign
        statements required to be filed pursuant to the Political Reform Act, commencing
        with Government Code Section 81000, as amended, candidates for Mayor,
        Controller, City Attorney and City Council, their controlled committees and
        committees primarily formed to support or oppose these candidates shall file a pre-
        election statement on the Friday before the election. This statement shall have a
        closing date of the Wednesday before the election and shall cover activity and
        payments occurring through that day. Candidates for elective City office, their
        controlled committees and committees primarily formed to support or oppose these
        candidates shall also file campaign statements as follows in connection with a City
        primary election held in March of an odd-numbered year.

        1.      For the period ending September 30 of the year prior to the election, a
                statement shall be filed no later than October 10, for the period from July 1
                through September 30.




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        2.      For the period ending December 31 of the year prior to the election, a
                statement shall be filed no later than January 10, of the year of the election
                for the period from October 1 through December 31.

B.      Contributor Occupation & Employer. No contribution shall be deposited into a
        campaign checking account of a candidate for Mayor, Controller, City Attorney or
        City Council unless the name, address, occupation and employer of the contributor
        is on file in the records of the recipient of the contribution.

C.      Campaign Literature. Each candidate for elective City office, and each committee
        making independent expenditures or member communications in a City election,
        who sends a mailing or distributes more than 200 substantially similar pieces of
        campaign literature shall send a copy of the mailing or other literature to the City
        Ethics Commission at the same time the mailing or other literature is given to the
        post office or otherwise distributed. Committees making independent expenditures
        or member communications in a City election and candidates who are required to
        open a campaign committee for City elective office shall electronically submit the
        mailing or other literature to the Commission in a Portable Document Format (PDF)
        or other electronic format pre-approved by the Commission. A candidate who is
        not required to open a committee for elective City office may submit the mailing or
        other literature either electronically or by mail, personal delivery, or facsimile. The
        Commission shall post without alteration all electronic submissions it receives
        under this section on its website within two business days of receipt. The
        Commission shall also post without alteration and within two days of receipt all
        other submissions it receives under this section on its website. The Commission
        shall not judge, comment upon or edit the contents of the mailings or other
        literature.

D.      Online Disclosure of Campaign Statements.

        1.      Any candidate for Mayor, Controller, City Attorney or Member of the City
                Council and the candidate's controlled committee required to file campaign
                statements with the City Ethics Commission shall file those campaign
                statements online, using the Commission's Electronic Filing System (EFS),
                after the candidate and/or committee has received contributions or made
                expenditures of $25,000 or more in connection with election to an office
                listed in this subsection. Once a candidate or committee is required to file
                campaign statements online, that candidate or committee shall continue to
                file statements online until the committee has officially terminated. July 1,
                2001, will be the beginning date for calculating the $25,000 threshold.

        2.      Committees and other persons not required to file online by this section may
                do so voluntarily.




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        3.      A person required by subdivision 1 to file online shall continue to file a paper
                copy of each campaign statement, as required by the California Political
                Reform Act and this Article, until the person is no longer required to file
                campaign statements with the City Ethics Commission. The paper copy
                shall continue to be the original campaign statement for audit and other legal
                purposes.

        4.      In addition to any late filing penalties that may be imposed for a late filing of
                a paper copy pursuant to the California Political Reform Act or this Article,
                any person who fails to comply with the online filing requirement of this
                section will, in addition, be subject to an additional late filing penalty of $25
                per day after the deadline for the late filing of the online copy.

        5.      The information contained on a campaign statement filed online shall be the
                same as that contained on the paper copy of the same statement that is filed
                with the Commission.

        6.      The Electronic Filing System (EFS) is an internet-based, interactive
                computer program developed by the Los Angeles City Ethics Commission
                and available on its website and allows persons to file, view and search
                statements and reports filed with the Commission online.


SEC. 49.7.12            Officeholder Controlled Funds
                        Amended by Ordinance No. 172480, effective 4/10/99.
                        Amended by Ordinance No. 172481, effective 4/10/99.
                        Amended by Ordinance No. 175344, effective 8/16/03.

Declaration of Purpose:

To effectively serve and fulfill their responsibilities to residents of the City, elected City
officers communicate with constituents, undertake efforts to assure efficient City services,
and engage in professional development activities. To accomplish these duties and
responsibilities, the Mayor, City Attorney, Controller and each Member of the City Council
may establish and maintain one officeholder expense fund to pay for expenses
enumerated in this section that relate to carrying out the duties associated with holding
elected City office. Any expenditures made by a committee for the purposes of assisting,
serving, or communicating with constituents must be made from the officeholder account.

A.      Officeholder Expense Fund

        1.      Each elected City officer shall be permitted to establish and maintain one
                officeholder expense fund, subject to the provisions of this section.




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        2.      An expenditure from the officeholder expense fund must be related to
                assisting, or serving, or communicating with constituents, or otherwise made
                in connection with the official duties of the elected City officer, provided,
                however that no expenditure may be made from an officeholder expense
                fund regulated by this section unless the expenditure falls into one or more
                of the following categories:

                (a)     Expenditures for fundraising (including solicitations by mail) for the
                        officeholder expense fund.

                (b)     Expenditures for office equipment, office furnishings and office
                        supplies.

                (c)     Expenditures for office rent.

                (d)     Expenditures for salaries of part-time or full-time staff employed by
                        the officeholder expense fund committee.

                (e)     Expenditures for consulting, research, polling, photograph,
                        videotaping and similar services.

                (f)     Expenditures for conferences, meetings, receptions, and events
                        attended in the performance of governmental duties by (1) the
                        officeholder, or (2) a member of the officeholder's staff. These
                        expenditures may include fees for materials, registration or
                        admission.

                (g)     Expenditures for travel, including lodging, meals, and other related
                        disbursements, incurred in the performance of governmental duties
                        by the officeholder, a member of the officeholder's staff, or a member
                        of such person's household accompanying the person on such travel.

                (h)     Expenditures for meals during which the attendees conduct official
                        City business.

                (i)     Expenditures for donations to tax-exempt educational institutions or
                        tax exempt charitable, civic or service organizations.

                        (1)    For purposes of this paragraph, a “donation” is a payment of
                               which a majority of the expenditure could be deducted as a
                               charitable deduction for federal income tax purposes. A
                               donation may be the purchase of tickets to a charitable event,
                               provided that the majority of the ticket price would be tax
                               deductible, and that no substantial part of the proceeds from
                               the event will personally benefit the elected officer, any
                               member of his or her immediate family, or his or her
                               officeholder expense committee, or the committee’s treasurer.


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                        (2)    An organization shall be considered tax exempt within the
                               meaning of this paragraph only if it has received a federal tax
                               exemption under Internal Revenue Code Section 501(c)(3).

                (j)     Expenditures for memberships to civic or professional organizations,
                        if such membership serves a governmental or legislative purpose.

                (k)     Expenditures for an educational course or educational seminar if the
                        course or seminar maintains or improves skills which are employed
                        by the officeholder or a member of the officeholder's staff in the
                        performance of his or her governmental responsibilities.

                (l)     Expenditures for advertisements in program books, testimonials,
                        souvenir books, or other publications if the advertisement does not
                        support or oppose the nomination or election of a candidate for City
                        office.

                (m)     Expenditures for mailings to persons within the City which provide
                        information related to city-sponsored events, government services,
                        the requirements of the law or an official's position on a particular
                        matter on which the Council, Mayor or a City agency is acting or has
                        recently acted.

                (n)     Contributions or expenditures to support or oppose candidates
                        seeking election to an office other than an elective City office.

                (o)     Contributions or expenditures to support or oppose ballot measures.

                (p)     Contributions to a political party or committee, including the purchase
                        of tickets to political events, where no substantial part of the proceeds
                        will personally benefit the elected officer, any member of his or her
                        immediate family or his or her committee treasurer.

                (q)     Expenditures for expressions of congratulations, appreciation or
                        condolences sent to constituents, employees, governmental officials,
                        or other individuals with whom the officeholder communicates in his
                        or her official capacity. No more than $100 per fiscal year may be
                        expended per individual recipient acknowledged pursuant to this
                        paragraph.

                (r)     Expenditures for conferences, meetings, receptions and events
                        concerning City business or issues which are officially sponsored and
                        hosted by the elected officer and his or her office. These expenditures
                        may include site fees, advertising brochures, invitations, materials
                        distributed to attendees, refreshments, equipment and services, and
                        other incidental expenses.



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                (s)     Expenditures for events such as meetings, luncheons and retreats
                        attended primarily by the elected officer’s staff in the conduct of
                        official City business.

                (t)     Expenditures for social events held by the elected official to honor or
                        thank members of his or her staff, or in connection with a holiday
                        celebration, attended primarily by the elected officer’s staff.

                (u)     Expenditures for payment of tax liabilities incurred as a result of
                        authorized officeholder expense fund transactions.

                (v)     Expenditures for accounting, professional, and administrative services
                        provided to the officeholder expense fund.

                (w)     An expenditure similar to an expenditure detailed in Paragraphs (a)
                        through (v), inclusive, if, prior to making the expenditure, the
                        officeholder or the officeholder expense fund has received written
                        advice from the City Ethics Commission that the expenditure is
                        permissible pursuant to this paragraph. The City Ethics Commission
                        shall respond to requests for such approval no more than five working
                        days from the date a request for formal advice has been received.

        3.      Officeholder expense funds shall not be used for the following:

                (a)     Expenditures in connection with a future election for elective City
                        office.

                (b)     Membership in any athletic, social, fraternal, veteran or religious
                        organization.

                (c)     Supplemental compensation for employees for performance of an act
                        which would be required or expected of the person in the regular
                        course or hours of his or her duties as a City official or employee.

                (d)     Any expenditures that would violate the provisions of Government
                        Code Section 89506 or 89512 through 89519.

        4.      No person shall make, and no elective City officer or officeholder fund shall
                solicit or accept or cause to be solicited or accepted from any person any
                contribution or contributions or any payment or payments for legislative or
                governmental purposes within the meaning of Government Code Section
                82015(b)(2)(iii), all of which cumulatively exceeds the following during any
                fiscal year:

                (a)     $1,000 to the officeholder expense fund of the Mayor, City Attorney or
                        Controller; or



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                (b)     $500 to the officeholder expense fund of a Member of the City
                        Council.

                For purposes of this Code, a payment made for legislative or governmental
                purposes does not include any payments by Internal Revenue Code Section
                501(c)(3) non-profit organizations and bona fide educational institutions for a
                salary or other remuneration to a student or other worker who serves as an
                intern in the office of an elective City officer.

        5.
                (a)     No elective City officer or his or her officeholder expense fund shall
                        solicit or accept or cause to be solicited or accepted any contribution
                        that would cause the total of either the amount of contributions from
                        all persons to an officeholder expense fund or the total outstanding
                        balance of the fund during any fiscal year to exceed $75,000.

                (b)     Campaign funds remaining in the campaign checking account of a
                        candidate elective [sic, elected] to City office shall be transferred into
                        his or her officeholder account within six months of election to office.
                        The amount of funds transferred from an officeholder’s campaign
                        committee and from any other officeholder expense fund account
                        controlled by the same elective City officer shall reduce by an equal
                        amount the contributions that may be solicited or accepted for the
                        officeholder account during that fiscal year. A maximum of $75,000
                        shall be transferred into the account. If the transfer equals $75,000,
                        no contributions may be solicited or accepted for the officeholder
                        account for the fiscal year during which the transfer is made.

        6.      Except for expenditures made for purposes pursuant to paragraphs (i), (n),
                (o), (p), (q), and (u) of subdivision 2 of this subsection, no expenditure from
                the officeholder expense fund of an elected City officer shall be made which
                would cause cumulative expenditures of the fund during a fiscal year to
                exceed $75,000.

        7.      After the elected City officer has filed a “Declaration of Intent to Solicit and
                Receive Contributions” in connection with any future election for elective City
                office, or during the twelve months prior to the date of the election on which
                the elected City officer’s name will appear on the ballot at a primary
                nominating or general municipal election, whichever comes first, officeholder
                expense funds shall be expended only for:

                (a)     those purposes set forth in paragraphs (a), (b), (c), (d), (f)(2), (g)
                        (when in conjunction with Internal Revenue Code 501(c)(3) tax
                        exempt organizations), (h), (i), (j), (k), (n), (o), (p), (q), (r), (s), (t), (u),
                        (v) of subdivision 2 for this subsection;




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                (b)     any mailing of 200 or fewer substantially similar pieces to persons
                        within the official’s district which provides information related to City
                        business; or

                (c)     any mailing of more than 200 substantially similar pieces which
                        provides information about City business, if the piece:

                        (1)    does not contain an elected official’s photograph, and;

                        (2)    does not contain an elected official’s name, other than:

                               (i)     as part of an official’s electronic mail or internet address,

                               (ii)    once on a letterhead, logotype or form, and

                               (iii)   once on the envelope.

        8.      Notwithstanding Subdivision 7 above, no mailing may be produced or sent at
                officeholder expense between the time the elected City officer has filed a
                “Declaration of Intent to Become a Candidate” for any elective City office and
                the date of the election at which the person appears on the ballot.

        9.      No expense for personal services shall be incurred by an officeholder
                expense fund committee unless the committee first enters into a written
                contract for such services. Such contract must set forth the services to be
                performed and the amount that will be paid for such services (or a basis for
                calculating such amount).

B.      Legal Defense Fund

        1.      Every elected City officer or candidate for elective City office shall be
                permitted to establish and maintain one Legal Defense Fund.

        2.      In addition to contributions received in connection with an election to an
                elective City office or to defray officeholder expenses, an elected City officer
                or candidate for elective City office who receives contributions for a legal
                defense fund, may use those funds solely to defray attorney's fees and other
                legal costs incurred in the officer's or candidate's legal defense to one or
                more civil or criminal court cases, or administrative proceedings, arising
                directly out of the conduct of an election campaign, the electoral process or
                the performance of the officer's governmental activities and duties.




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        3.      The officeholder or candidate shall file with the City Ethics Commission a
                "Statement of Purpose" identifying the specific civil or criminal court case, or
                administrative proceedings, for which the Legal Defense Fund is
                established. The "Statement of Purpose" shall be filed before any
                contributions are solicited and/or accepted.

        4.      The Legal Defense Fund shall be named: "The (name of candidate or
                officeholder) Legal Defense Fund".

        5.      No person shall make, or no elected City officer or candidate shall solicit or
                accept from any person, contributions totaling more than $1,000 during a
                fiscal year to a Legal Defense Fund in connection with any single court case
                or administrative proceeding as identified in the "Statement of Purpose".

        6.      No legal defense funds remaining after any court case or proceeding in
                connection with which the funds were raised may be transferred to any other
                fund or committee. Within six months after final conclusion of the lawsuit or
                proceeding and the payment of all debts incurred in connection with that
                lawsuit or proceeding, any surplus legal defense funds may be used in
                connection with any other lawsuit or administrative proceeding brought
                against the elected City officer or candidate for the purpose stated in
                Subdivision 2, or may be returned to donors on a pro rata basis or given to
                the City's General Fund.

        7.      This section shall constitute the sole authority for soliciting or accepting
                donations for legal costs for the defense of an action relating to an election
                campaign, electoral process or an officer's conduct in office.

C.      Single Controlled Committee and Bank Account

        1.      Each elected City officer or candidate who wishes to make expenditures for
                the purposes set forth above for either the officeholder expense fund or the
                legal defense fund shall establish a single controlled committee from which
                all such expenditures shall be disbursed. Each of the funds shall be
                considered a subaccount of the controlled committee. If a contribution is
                designated by the contributor as a contribution to the legal defense fund,
                then the contribution shall be credited to that fund. If a contribution is
                designated by the contributor as a contribution to the officeholder expense
                fund, or if the contribution is not designated as a contribution to either fund,
                then the contribution shall be credited to the officeholder expense fund.




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        2.      The committee shall establish one checking account at an office of a
                financial institution located in the City of Los Angeles for the officeholder
                expense fund and legal defense fund. The account shall serve as the
                depository account for all contributions received in connection with the
                officeholder expense fund and the legal defense fund, and all such
                contributions shall be deposited into such account.

D.      Contribution Limits. A contribution to the officeholder expense fund or the legal
        defense fund shall not be subject to any other contribution limitations contained in
        the City Charter or a City ordinance, except as provided in this section.

E.      Disclosure.

        1.      Elected City officers, candidates and committee treasurers shall be required
                to maintain such detailed accounts, records, bills and receipts that are
                necessary to prepare campaign statements and to comply with the Political
                Reform Act of 1974, as amended, the regulations of the Fair Political
                Practices Commission, this section, and any regulations of the City Ethics
                Commission.

        2.      Campaign disclosure statements shall be filed for the committee. Those
                statements shall contain separate summary pages and disclosure schedules
                for the officeholder expense fund and legal defense fund.

        3.      In addition to the campaign statements required by the Political Reform Act
                of 1974, as amended, and Los Angeles Municipal Code Section 49.7.11, the
                elective City officer or candidate shall file campaign statements for his or her
                officeholder expense fund and legal defense fund as follows:

                (a)     During a year when the elective City officer's name does not appear
                        on a ballot for elective City office, the elective officer and the
                        controlled committee for the officeholder expense fund and legal
                        defense fund shall file quarterly campaign statements no later than
                        April 30 for the period ending March 31, no later than July 31 for the
                        period ending June 30, no later than October 31 for the period ending
                        September 30, and no later than January 31 for the period ending
                        December 31.

                (b)     During a year when the elective City officer's name appears on a
                        ballot for elective City office, the elective City officer and the
                        controlled committee for the officeholder expense fund and legal
                        defense fund shall file all campaign statements in accordance with the
                        schedule prescribed by the Political Reform Act of 1974, as amended,
                        and Section 49.7.11 A. of this Code. Upon assuming City office, the
                        elected City officer shall immediately begin filing quarterly statements
                        as required by subdivision 1 of this subsection.



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        4.      Persons required to file disclosure statements for officeholder expense fund
                committees shall comply with the requirements of Section 49.7.11 D of this
                Code, except that there shall be no threshold dollar amount as a prerequisite
                to the filing obligation. In addition to any late filing penalties that may be
                imposed for a late filing of a paper copy pursuant to the California Political
                Reform Act or this Article, any person who fails to comply with the online
                filing requirement of this section will, in addition, be subject to an additional
                late filing penalty of $25 per day after the deadline for the late filing of the
                online report.

F.      Miscellaneous. Except as expressly provided, nothing in this section shall be
        deemed to exempt any person or committee from complying with applicable
        provisions of any other laws.


SEC. 49.7.13            Expenditure Ceilings
                        Amended by Ordinance No. 171498, effective 3/8/97.
                        Amended by Ordinance No. 175344, effective 8/16/03.

A.      No candidate for City Council who files a statement of acceptance of matching
        funds, nor any controlled committee of such candidate, shall make qualified
        campaign expenditures above the following amounts: $330,000 per primary
        election and $275,000 per general election.

B.      No candidate for Controller who files a statement of acceptance of matching funds,
        nor any controlled committee of the candidate, shall make qualified campaign
        expenditures above the following amounts: $900,000 for the primary election and
        $676,000 for the general election.

C.      No candidate for City Attorney who files a statement of acceptance of matching
        funds, nor any controlled committee of the candidate, shall make qualified
        campaign expenditures above the following amounts: $1,013,000 for the primary
        election and $788,000 for the general election.

D.      No candidate for Mayor who files a statement of acceptance of matching funds, nor
        any controlled committee of the candidate, shall make qualified campaign
        expenditures above the following amounts: $2,251,000 for the primary election and
        $1,800,000 for the general election.

E.      For purposes of this section, primary election includes a special primary election
        and general election includes a special runoff election.




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F.      "Qualified campaign expenditure" means:

        (1)     Any expenditure made by a candidate for elective City office, or by a
                committee controlled by such a candidate, for the purpose of influencing or
                attempting to influence the actions of the voters for or against the election of
                any City candidate.

        (2)     A non-monetary contribution provided at the request of or with the approval
                of the candidate, officeholder or committee controlled by the candidate or
                officeholder.

        (3)     "Qualified campaign expenditure" does not include any payment if it is clear
                from the surrounding circumstances that it was not made in any part for
                political purposes.


SEC. 49.7.14            Expenditure Ceilings Lifted
                        Amended by Ordinance No. 168540, effective 3/5/93.

If a candidate who declines to accept matching funds makes qualified campaign
expenditures in excess of the expenditure ceiling, or if an independent expenditure
committee or committees in the aggregate spend more than $50,000 in the case of a City
Council race, $100,000 in the case of an election for City Attorney or Controller, or
$200,000 in the case of an election for Mayor, in support of or in opposition to any such
candidate, the applicable expenditure ceiling shall no longer be binding on any candidate
running for the same office.


SEC. 49.7.15            Notification by Non-Participating Candidate Regarding
                        Expenditure Ceiling Amounts.
                        Amended by Ordinance No. 175344, effective 8/16/03.

A candidate who declines to receive matching funds shall notify the Ethics Commission by
telephone and by confirming telegram, fax or e-mail on the day the candidate raises more
than 100% of the applicable expenditure ceiling and again on the day the candidate
spends more than 100% of the applicable expenditure limit; the Commission shall notify all
other candidates for the same office by telephone, fax or e-mail within one business day.




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SEC. 49.7.16            Time Periods for Expenditures

For purposes of the expenditure ceilings, qualified campaign expenditures made at any
time up to the date of a primary election shall be considered expenditures for that election,
and qualified campaign expenditures made after the date of the primary election shall be
considered expenditures for the general or runoff election. However, in the event that
payments are made but the goods or services are not used during the period purchased,
the payments shall be considered qualified campaign expenditures for the time period in
which the goods or services are used. Payments for goods and services used during both
periods shall be prorated.


SEC. 49.7.17            Compliance Costs
                        Repealed by Ordinance No. 171498, effective 3/8/97.



SEC. 49.7.18            Candidate Acceptance or Rejection of Matching Funds
                        Amended by Ordinance No. 175344, effective 8/16/03.

A.      At the time of filing his or her declaration of intention pursuant to City Election Code
        Section 321, each candidate shall file a statement of acceptance or rejection of
        matching funds. Within seven (7) days after the final filing date for such
        declarations, a candidate who had previously filed a statement of acceptance of
        matching funds may reject matching funds if another candidate for the same office
        has rejected matching funds, provided that the candidate returns to the City any
        matching funds payments received for that election. If a candidate agrees to
        accept matching funds, the candidate shall comply with the provisions of Section
        49.7.13.

B.      Each candidate shall notify the City Ethics Commission by personal delivery,
        telegram, fax or email on the day the candidate raises, spends or has cash on hand
        of more than $50,000 in the case of a candidate for City Council, $100,000 in the
        case of a candidate for City Attorney or Controller and $200,000 in the case of a
        candidate for Mayor. The notification shall identify whether that amount was raised,
        spent or is cash on hand. The Commission shall then so notify all other candidates
        for the same office.

C.      Each matching funds participating candidate shall notify the City Ethics
        Commission by personal delivery, telegram, fax or e-mail on the day that the
        amount of the expenditure ceiling established for participating candidates in Section
        49.7.13 has been raised, spent by the candidate or once the candidate has cash on
        hand in that amount. The notification shall be made within 24 hours of the date the
        amount has been reached.




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SEC. 49.7.19            Qualification Requirements
                        Added by Ordinance No. 171498, effective 3/8/97.
                        Amended by Ordinance No. 175344, effective 8/16/03.

A.      In order to qualify to receive matching funds in a primary nominating or special
        primary election, a candidate shall meet all of the following requirements:

        1.      The candidate and his or her controlled committee must receive
                contributions (other than contributions from the candidate or his or her
                immediate family) of at least $25,000 in the case of a candidate for City
                Council, $75,000 in the case of a candidate for City Attorney or Controller,
                and $150,000 in the case of candidate for Mayor. For purposes of this
                section, a candidate may receive a contribution up to the allowable
                contribution limits, but only the first $500 in the case of a candidate for City
                Attorney, Controller, or Mayor, and the first $250 in the case of a candidate
                for City Council, shall count toward the qualification threshold. Only
                contributions received within the time period before the election as specified
                in Section 49.7.7, or, if a special election, after the declaration of intention to
                solicit and raise funds is filed, may be counted for the above thresholds.

        2.      The candidate is opposed by a candidate running for the same office who
                has qualified for matching funds or who has raised, spent or has cash on
                hand of at least $50,000 in the case of a candidate for City Council,
                $100,000 in the case of a candidate for City Attorney or Controller and
                $200,000 in the case of a candidate for Mayor.

        3.      The candidate contributes no more than $25,000 for the election in the case
                of a candidate for City Council and no more than $100,000 for the election in
                the case of any other candidate from his or her personal funds to the
                campaign.

        4.      Campaign contributions received after an election shall be eligible for
                matching funds if the contributions were received during the three month
                period after the election for the purposes of retiring debt incurred during the
                election campaign. The balance of any outstanding personal loan that is a
                contribution under Section 49.7.6 are not “debt” for the purposes of this
                section.

B.      If the City Council has caused certificates of nomination to be issued by the City
        Clerk to the two candidates receiving the highest number of votes for any given
        office at the primary nominating election, the candidates shall be eligible in a
        general election to (1) receive matching funds in the amount of one-fifth of the
        amount of funds specified in Section 49.7.22 B, not subject to the requirements of
        Section 49.7.20 (matching funds formula), and (2) receive total matching funds up
        to the amount specified in Section 49.7.22, subject to the requirements of Section
        49.7.20.



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C.      In order to qualify for matching funds, a candidate in a primary election must agree
        in writing to participate in at least one debate with his or her opponents, and a
        candidate in a general election must agree in writing to participate in at least two
        debates with his or her opponents.

D.      For the purposes of Subsections A and B, a loan, pledge or a non-monetary
        contribution shall not be considered a contribution.

E.      A participant may not receive a matching funds payment unless the participant, or
        his or her controlled committee, has filed all previously due campaign statements
        required by the Political Reform Act of 1974, as amended, and Section 49.5.15 of
        this Code, until all such statements are filed.


SEC. 49.7.20            Matching Funds Formula
                        Amended by Ordinance No. 175344, effective 8/16/03.

A.      A candidate who is eligible to receive matching funds shall receive payments for
        contributions received from an individual (other than a contribution from the
        candidate or his or her family) on the basis of the following formula:

        1.      For the primary election: One dollar in matching funds for each dollar in
                contributions while a candidate is attempting to reach the threshold of
                Section 49.7.19 within twelve months before the date of the election, or if a
                special election, twelve months before the date of the election or after the
                candidate filed a declaration of intention to solicit and raise funds, whichever
                is later. Contributions which qualify for matching funds include: (i) for
                candidates for Mayor, City Attorney or Controller, only the first $500 from an
                individual; (ii) for candidates for City Council, only the first $250 from an
                individual.

        2.      Upon certification for the general election, each participating candidate shall
                receive a 1/5th grant of the amount of funds specified in Section 49.7.22 of
                this Code, not subject to the matching funds requirement detailed in Section
                49.7.20 of this Code. The remaining 4/5ths of matching funds available to a
                candidate shall be provided to the candidate on the basis of the following
                formula: (i) for candidates for Mayor, City Attorney or Controller, one dollar
                in matching funds for each dollar in contributions received from an individual,
                up to the first $500; or (ii) for candidates for City Council, one dollar in
                matching funds for each dollar in contributions received from an individual,
                up to the first $250, during the periods in which the candidate was allowed to
                solicit and accept contributions.

B.      For purposes of this section, a loan, pledge, or non-monetary contribution shall not
        be considered a contribution.




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C.      For purposes of this section, a candidate may receive contributions up to the
        applicable contribution limit, but only the first $500 of each contribution in the case
        of a candidate for Mayor, City Attorney or Controller, and the first $250 in the case
        of a candidate for City Council, shall be matched.


SEC. 49.7.21            Candidate Request for Payment

A.      The City Ethics Commission shall determine the information needed to be
        submitted to qualify for payment of matching funds. The Commission shall certify
        each request for payment of matching funds. A candidate may not request less
        than $10,000 in payments at any one time; provided, however, that in the 14 days
        preceding an election, a candidate may request $1,000 or more in such payments
        at any one time.

B.      Any candidate who knowingly or willfully makes a request for any payment of
        matching funds that is false, or who misrepresents the contributions received by
        him or her or by his or her controlled committee, is guilty of a misdemeanor and, if
        such is deemed appropriate under the circumstances shall be removed from office.
        Any candidate who knowingly, willfully or negligently makes a request for any
        payment of matching funds that is false, or who knowingly, willfully or negligently
        misrepresents the contributions received by him or her or by his or her controlled
        committee, shall return all matching funds received as a result of such request.


SEC. 49.7.22            Maximum Funds Available to Candidate
                        Amended by Ordinance No. 175344, effective 8/16/03.

A.      Primary Election. Except as provided in Subsection C, no candidate shall receive
        matching funds in excess of the following amounts for a primary election: $100,000
        in the case of a candidate for City Council; $267,000 in the case of a candidate for
        Controller; $300,000 in the case of a candidate for City Attorney; and $667,000 in
        the case of a candidate for Mayor.

B.      General Election. Except as provided in Subsection D, no candidate shall receive
        matching funds in excess of the following amounts for a general election: $125,000
        in the case of a candidate for City Council; $300,000 in the case of a candidate for
        Controller; $350,000 in the case of a candidate for City Attorney; and $800,000 in
        the case of a candidate for Mayor.




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C.      Primary Election — Accelerated Matching Funds — Personal Funds. Any
        candidate who has filed a declaration pursuant to Section 48.7.18 A., and who has
        qualified to receive matching funds pursuant to Section 49.7.19 in the primary
        election, shall become eligible to receive, from that point forward, three dollars in
        public funds for each eligible dollar in contributions received, when any non-
        participating candidate in the same race contributes an amount of personal funds
        greater than or equal to 50 percent of the spending limit and spends in excess of
        the spending limit for participating candidates in that race.

D.      General Election — Increased Matching Funds. Any participating candidate
        who has qualified to receive matching funds in the primary election may qualify to
        receive total matching funds in the general election up to the following amounts:
        $1,000,000 in the case of a candidate for Mayor; $420,000 in the case of a
        candidate for City Attorney; $360,000 in the case of a candidate for City Controller;
        $150,000 in the case of a candidate for City Council when any of the following
        occur:

        1.      Any non-participating candidate in the same race contributes an amount of
                personal funds greater than or equal to 50 percent of the spending limit and
                exceeds the spending limit in that race;

        2.      Non-candidate spending is made to support any other candidate in the same
                race in the following aggregate amounts: $200,000 in the case of a
                candidate for Mayor; $100,000 in the case of a candidate for City Attorney or
                Controller; $50,000 in the case of a candidate for City Council; or

        3.      Non-candidate spending is made in opposition to his or her election in the
                following aggregate amounts: $200,000 in the case of a candidate for Mayor;
                $100,000 in the case of a candidate for City Attorney or Controller; $50,000
                in the case of a candidate for City Council.

E.      When a participating candidate becomes eligible to receive additional matching
        funds as provided in Subsection D, that candidate may receive matching funds
        from that point forward at the rate of three dollars in public funds for each eligible
        dollar in contributions received, up to the maximum amount allowed in Subsection
        D. Only the part of the claim that does not exceed the maximum amount shall be
        paid.




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SEC. 49.7.23            Payments to Candidates
                        Amended by Ordinance No. 175344, effective 8/16/03.

The Controller shall make matching funds payments in the amount certified by the City
Ethics Commission. Payments shall be made no later than four working days after receipt
by the Commission. If the Commission determines the money available for matching fund
purposes is not, or may not be, sufficient to satisfy the full entitlement of the eligible
candidates, the Commission shall notify the Controller to withhold sufficient amounts, as
determined by the Commission, as may be necessary to assure that each eligible
candidate will receive a pro rata share of their entitlement. The amounts withheld shall be
paid when the Commission determines that there is sufficient money to pay the amounts
or portions of the amounts.


SEC. 49.7.24            Contribution Limitations to Independent Expenditure
                        Committees
                        Amended by Ordinance No. 172942, effective 1/21/00.

Any person or committee who makes independent expenditures supporting or opposing a
candidate shall not accept any contribution in excess of the amounts set forth in Charter
Section 470(c)(5).


SEC. 49.7.25            Reproduction of Materials

Any person who reproduces, broadcasts or distributes any material which is drafted,
printed, prepared or previously broadcast by a candidate or a committee controlled by
such a candidate shall report such an expenditure as a non-monetary contribution to such
candidate or committee.


SEC. 49.7.26            Notice of Payments for Independent Expenditures and Non-
                        Behested Member Communications
                        Amended by Ordinance No. 175344, effective 8/16/03.
                        Amended by Ordinance No. 178064, effective 1/15/07.

A.      Disclosure of Payments. Any person, including any committee, that makes or
        incurs independent expenditures of $1,000 or more in support of or in opposition to
        any City measure or candidate for elective City office, or one or more payments for
        member communications, as defined by this article, totaling $1,000 or more in
        support of or in opposition to a candidate for elective City office or City measure,
        shall notify the City Ethics Commission within 24 hours by certified mail or fax or e-
        mail each time one or more payments, which meet this threshold, are made.




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B.      Contents of Notice. The notification shall consist of a declaration specifying each
        candidate or measure supported or opposed by the expenditure, the amount spent
        to support or oppose each candidate or measure, whether the candidate or
        measure was supported or opposed, and that the expenditure was not behested by
        the candidate or candidates who benefited from the expenditure. This declaration
        shall be made under penalty of perjury and signed by the person or officer and the
        treasurer of the group making the expenditure. In addition, the date and amount of
        the payment, a description of the type of communication for which the payment was
        made or incurred, the name and address of the person making the payment, the
        name and address of the payee, and a copy of the mailing or advertisement, or a
        copy of the script or recording of the call, transmission, or advertisement, shall also
        be provided to the Commission. The notification also shall include disclosure of
        contributions of $100 or more received by the committee since the day after the
        closing date of the committee’s last campaign disclosure report filed with the
        Commission or since the first day of the current calendar year, whichever date
        occurs later; however, contributions that are received, but earmarked for any other
        candidate or ballot measure outside the City of Los Angeles need not be disclosed.
        The notification also shall include disclosure of contributions of $100 or more made
        in the current calendar year by the person to City candidates, their controlled
        committees, committees primarily formed to support or oppose City measures, and
        City general purpose recipient committees.

C.      Notification to Candidates of Expenditures. City Ethics Commission staff will
        notify all candidates by phone, fax or e-mail in the affected race within one
        business day after receiving the notice of payments for independent expenditures
        and uncoordinated member communications of $1,000 or more. The notification
        will indicate the candidate who was supported or opposed by the expenditure as
        indicated on the signed declaration and include a copy of the communication
        provided by the person or group making the expenditure.

D.      Exemption for Regularly Published Newsletters. For purposes of the
        notification required in Subsection A, payments by an organization for its regularly
        published newsletter or periodical, if the circulation is limited to the organization’s
        members, employees, shareholders, other affiliated individuals and those who
        request or purchase the publication, shall not be required to be reported.

E.      Copies of Communications — Delivery to the City Ethics Commission and
        Disclosure of Communications. Any committee, including but not limited to a
        candidate controlled committee and an independent expenditure committee, that
        makes or incurs payments for 1,000 or more recorded telephone calls or any other
        forms of electronic or facsimile transmission of substantially similar content, or that
        makes or incurs expenditures of $1,000 or more for a radio or television
        advertisement, in support of or opposition to any candidate(s) for elective City
        office, shall send a copy of the script or recording used for each communication to
        the Ethics Commission within 24 hours of the first time the calls, transmissions, or
        advertisements are made or aired.



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SEC. 49.7.26.1          Behested Expenditures
                        Added by Ordinance No. 175344, effective 8/16/03.

A.      Behested expenditures defined; effect of behested expenditures.

        1.      An expenditure behested by a candidate or candidate’s controlled committee
                is not an independent expenditure and shall be treated as a contribution to
                the candidate or committee that behests the expenditure.

        2.      A payment is behested if it is made:

                (a)     at the request or suggestion of the candidate, committee, or the
                        candidate or committee’s agent;

                (b)     in concert with, with the cooperation of, or in consultation with, the
                        candidate, committee, or the candidate or committee’s agent; or

                (c)     made under any arrangement, coordination, or direction between the
                        candidate, committee, or the candidate or committee’s agent.

        3.      An expenditure is behested without limitation under the following
                circumstances:

                (a)     active involvement or participation by a candidate in the creation or
                        design of a communication financed by the spender, including
                        consultation between the spender and the candidate about content;

                (b)     solicitation by the spender and/or provision by the candidate of
                        materials specifically for use in the communication or procuring
                        candidate’s consent to include specific materials in the
                        communication; or

                (c)     arranging with the candidate for preparation of any materials used in
                        the communication.

B.      Presumption. There is a rebuttable presumption that an expenditure is behested,
        and therefore not independent, if:

        1.      it is made by or through any agent of the affected candidate or member of
                the candidate’s controlled committee in the course of his/her involvement in
                the current campaign;




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        2.      in the election cycle during which the expenditure is made, both the spender
                or the spender’s agent and the candidate on whose behalf the expenditure is
                made retain the same individual or entity to provide non-ministerial,
                campaign related professional services (non-ministerial, campaign related
                professional services include, but are not limited to: polling or other
                campaign research, media consulting or production, direct mail consultation,
                and fundraising);

        3.      the expenditure finances a communication that replicates, reproduces,
                republishes, distributes, or disseminates, in whole or substantial part, a
                broadcast, written, graphic, or other form of campaign material designed,
                produced, paid for, or distributed by the affected candidate, his or her
                committee, or agent;

        4.      the expenditure is based on information

                (i)     about a candidate’s campaign plans, projects, or needs not generally
                        available to the public; or

                (ii)    provided directly or indirectly by that candidate, committee, or their
                        agents to the spender or spender’s agent, with an express or tacit
                        understanding that the expenditure was being considered;

        5.      the spender or spender’s agent discusses or negotiates the content, timing,
                location, mode, intended audience, volume of distribution, or frequency of
                placement of a communication financed by the spender with the candidate
                whose election or nomination is advocated by the spender or whose
                opponent’s defeat is advocated by the spender;

        6.      in the election cycle during which the expenditure is made, the spender or
                spender’s agent is serving or has served in a formal executive, policy-
                making, or advisory position with the candidate’s campaign or has
                participated in strategic or policy-making discussions with the candidate’s
                campaign relating to that candidate’s pursuit of nomination or election to
                office, and the candidate is pursuing the same office as a candidate whose
                nomination or election the expenditure is intended to influence;

        7.      the expenditure is made after a request to the spender or spender’s agent by
                the candidate, the candidate’s controlled committee, or their agents for an
                expenditure on the candidate’s behalf; or

        8.      the expenditure is made in connection with or as a consequence of
                fundraising events or campaign activities co-sponsored by the candidate and
                the spender or the spender’s agent.




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C.      Exceptions. An expenditure will not be deemed behested merely when:

        1.      a spender or spender’s agent interviews a candidate on legislative or policy
                positions or issues affecting the spender or discusses campaign-related
                issues with the candidate, such as platforms, polling information, which
                organizations support the candidate and which support his/her opponent, or
                the identity of the consultants the candidate plans to hire, provided that prior
                to making a subsequent expenditure based on that information, the spender
                or his agent has not communicated with the candidate, candidate’s
                controlled committee, or their agents concerning the expenditure;

        2.      the spender solicits and/or obtains a photograph, biography, position paper,
                press release, or similar material from the candidate, candidate’s controlled
                committee, or their agents and, without the prior knowledge, control, or
                involvement of the candidate, candidate’s controlled committee, or their
                agents, subsequently utilizes or incorporates that information to create a
                communication in support of the candidate or in opposition to his or her
                opponent;

        3.      the spender made prior contributions to the candidate;

        4.      the spender communicates to the candidate, the candidate’s controlled
                committee, or the agent of either, the intent to make an independent
                expenditure without discussing any of the items mentioned in Subparagraph
                B 5 of this section;

        5.      a member of an organization that makes an expenditure renders volunteer
                personal services to or works for the affected candidate’s campaign, unless
                the volunteer or campaign worker was also involved in the activities of the
                spender-organization’s political action committee or makes payments on
                behalf of the spender-organization, or is serving or has served the affected
                candidates’ campaign in one of the capacities described in Subparagraph
                B.6 of this section;

        6.      the expenditure was made in response to an unsolicited request from
                political party leaders or their agents that the committee “support” the
                candidate or make an expenditure relating to the candidate;

        7.      the expenditure finances the cost of preparing or disseminating candidate
                evaluations to voters or conducting a political survey; or

        8.      the spender employs or is under contract with a political consultant or
                pollster who rendered services to a candidate in prior years.




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SEC. 49.7.26.2          Limitations on Certain Expenditures by Corporate or Union
                        Treasuries
                        Added by Ordinance No. 175344, effective 8/16/03.

A.      No labor organization or for-profit business corporation may make a payment to
        expressly advocate the election or defeat of one or more clearly identified
        candidates for elective City office from the treasury of that organization or
        corporation.

B.      This section does not prohibit a labor organization or for-profit business corporation
        from establishing a separate, segregated fund to be used for political purposes, or
        from making payments to that fund for the administration of the fund. A labor
        organization or for-profit corporation which has established such a fund may solicit
        contributions to that fund from its individual stockholders, officers, directors,
        employees, or members, and their spouses; and it may use money in the fund to
        make contributions or independent expenditures in connection with elections,
        including the election of Mayor, City Attorney, Controller, and Member of the City
        Council.

C.      This section does not prohibit the publication or broadcasting of news items or
        editorial comments by any news or broadcast media.

D.      For purposes of the prohibition of this section, payments from the treasury of a
        union for communications to its members and employees or a for-profit corporation
        for communications to its shareholders and employees that are not behested by a
        candidate shall not be prohibited.


SEC. 49.7.26.3          Disclaimers on Campaign Communications
                        Amended by Ordinance No. 175344, effective 8/16/03.
        `               Amended by Ordinance No. 178064, effective 01/15/07.

A.      Any candidate or committee that pays for a campaign communication shall print,
        display or incorporate the following words anywhere within the communication:
        “Paid for by” immediately followed by the name, address and city of that candidate
        or committee. If the sender of a mass mailing is a controlled committee, the name
        of the person controlling the committee shall also be included. If an acronym is
        used to specify a committee name, the full name of any sponsoring organization of
        the committee shall be included in the campaign communication disclaimer
        required by this section.

B.      Additional Requirements For Campaign Communications Funded By
        Independent Expenditures.




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                                                               Los Angeles Campaign Finance Ordinance



        1.      Campaign communications funded by an independent expenditure
                supporting or opposing City candidates shall include the phrase “Not
                authorized by a City candidate,” and shall also include the name of any
                contributor of $25,000 or more to a committee funding the independent
                expenditure in the six months prior to the date of that payment in the phrase
                “Major Funding Provided By [Name of Contributor(s)].” Payments of $25,000
                or more that are earmarked for any other candidate or ballot measure
                outside of the City of Los Angeles need not be disclosed.

        2.      Campaign communications funded by an independent expenditure
                supporting or opposing City measures shall include the name of any
                contributor of $25,000 or more to a committee funding the independent
                expenditure in the six months prior to the date of that payment in the phrase
                “Major Funding Provided by [Name of Contributor(s)].” Payments of $25,000
                or more that are earmarked for any other candidate or ballot measure
                outside of the City of Los Angeles need not be disclosed.

C.      The disclosures required by this section shall be presented in a clear and
        conspicuous manner to give the reader, observer or listener adequate notice, as
        specified below:

        1.      For printed campaign communications that measure no more than twenty-
                four inches by thirty-six inches, all disclosure statements required by this
                section shall be printed using a typeface that is easily legible to an average
                reader or viewer, but is not less than 12-point type in contrasting color to the
                background on which it appears. For oversize printed campaign
                communications, all disclosure statements shall constitute at least five
                percent of the height of the material and printed in contrasting color.

        2.      For video broadcasts including television, satellite and cable campaign
                communications, the information shall be both written and spoken either at
                the beginning or at the end of the communication, except that if the
                disclosure statement is written for at least five seconds of a broadcast of
                thirty seconds or less or ten seconds of a sixty second broadcast, a spoken
                disclosure statement is not required. The written disclosure statement shall
                be of sufficient size to be readily legible to an average viewer and air for not
                less than four seconds.

        3.      For audio, telephone call or radio advertisement campaign communications,
                the disclosures shall be spoken in a clearly audible manner at the same
                speed and volume as the rest of the telephone call or radio advertisement at
                the beginning or end of the communication and shall last at least three
                seconds. The requirement of Subsection A shall be satisfied by using the
                words “on behalf of” immediately followed by the name of the candidate or
                committee that pays for the communications.




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                                                                   Los Angeles Campaign Finance Ordinance



D.      For purposes of this section, “campaign communication” means any of the following
        items:

        1.      More than 200 substantially similar pieces of campaign literature distributed
                within a calendar month, including but not limited to mailers, flyers,
                facsimiles, pamphlets, door hangers, e-mails, campaign buttons 10 inches in
                diameter or larger, and bumper stickers 60 square inches or larger;

        2.      Posters, yard or street signs, billboards, supergraphic signs and similar
                items;

        3.      Television, cable, satellite and radio broadcasts;

        4.      Newspaper, magazine, internet website banners and similar advertisements;

        5.      200 or more substantially similar live or recorded telephone calls made
                within a calendar month.

E.      For purposes of this section, “campaign communication” does not include: small
        promotional items such as pens, pencils, clothing, mugs, potholders, skywriting or
        other items on which the statement required by this section can not be reasonably
        printed or displayed in an easily legible typeface; communications paid for by a
        newspaper, radio station, television station or other recognized news medium; and
        communications from an organization to its members other than a communication
        from a political party to its members.

F.      Campaign communications must be amended when a new person qualifies as a
        disclosable contributor or when the committee's name changes. Broadcast
        advertisement disclosures must be amended within five calendar days after a new
        person qualifies as a disclosable contributor or a committee's name changes.
        A committee shall be deemed to have complied with this section if the amended
        advertisement is mailed, containing a request that the advertisement immediately
        be replaced, to all affected broadcast stations by overnight mail no later than the
        fifth day. For printed campaign communications and other material, disclosure
        information must be amended to reflect accurate disclosure information every time
        an order to reproduce the communication is placed.


SEC. 49.7.26.4          Determination of Eligibility for Additional Candidate Benefits
                        Based on Declarations of Payments for Independent Expenditure
                        and Uncoordinated Member Communications
                        Added by Ordinance No. 175344, effective 8/16/03.

Candidate eligibility for additional matching funds provided in Subsections 49.7.22 D.2,
D.3, and E. and Section 49.7.14 shall be based solely on reports of payments for
independent expenditures or member communications submitted under penalty of perjury
to the City Ethics Commission pursuant to Section 49.7.26 of this Code.


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                                                                  Los Angeles Campaign Finance Ordinance



SEC. 49.7.27            Certain Provisions of Charter Section 470 Maintained
                        Amended by Ordinance No. 172942, effective 1/21/00.

The provisions of Charter Section 470 (Limitations on Campaign Contributions in City
Elections) are not superseded by this article.


SEC. 49.7.28            Enforcement

A.      Criminal Enforcement.

        1.      Any person who knowingly or willfully violates any provision of this Article is
                guilty of a misdemeanor. Any person who knowingly or willfully causes any
                other person to violate any provision of this Article, or who aids and abets
                any other person in the violation of any provision of this Article, shall be
                liable under the provisions of this section.

        2.      Prosecution of violation of any provision of the Article shall be commenced
                within four years after the date of the violation.

        3.      No person convicted of a misdemeanor under this Article shall act as a
                lobbyist or as a City contractor for a period of four years following the date of
                the conviction unless the court at the time of sentencing specifically
                determines that this provision shall not be applicable.
        4.      For the purposes of this section, a plea of nolo contendere shall be deemed
                a conviction.

B.      Civil Actions.

        1.      Any person who intentionally or negligently violates any provision of this
                Article shall be liable in a civil action brought by the City Attorney, the City
                Ethics Commission or by any person residing within the City for an amount
                not more $5,000 per violation, or for more than three times the amount the
                person failed to report properly or unlawfully contributed, expended, gave or
                received.

        2.      If two or more persons are responsible for any violation, they shall be jointly
                and severally liable.




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                                                               Los Angeles Campaign Finance Ordinance



        3.      Any person, other than the City Attorney, before filing a civil action pursuant
                to this subsection, shall first file with the City Ethics Commission a written
                request for the Commission to commence the action. The request shall
                contain a statement of the grounds for believing a cause of action exists.
                The Commission shall respond within 40 days after receipt of the request
                indicating whether it intends to file a civil action. If the Commission indicates
                in the affirmative and files an action within forty days thereafter, no other
                action may be brought unless the action brought by the Commission is
                dismissed without prejudice.

        4.      In determining the amount of liability, the court may take into account the
                seriousness of the violation and the degree of culpability of the defendant. If
                a judgment is entered against the defendant or defendants in an action, a
                private plaintiff shall receive fifty percent (50%) of the amount recovered.
                The remaining fifty percent shall be deposited into the City's General Fund.
                In an action brought by the City Attorney or the Commission, the entire
                amount shall be paid to the General Fund.

        5.      No action alleging a violation of this Article may be filed more than four years
                after the date the violation occurred.

C.      Injunctive Relief. Any person residing within the City of Los Angeles including the
        City Attorney, may sue for injunctive relief to enjoin violations or to compel
        compliance with the provisions of this article.

D.      Costs of Litigation. The court may award to a party, other than an agency, who
        prevails in any civil action authorized by this Article, his or her costs of litigation,
        including reasonable attorneys' fees. If the costs or fees are awarded against the
        City, the payment of such award shall be the responsibility of the City, subject to
        Council approval.

E.      No civil action alleging a violation of this Article shall be filed more than four years
        after the date of the violation.


SEC. 49.7.29            Late Filing Penalties

If any person files an original statement or report after any deadline imposed by this
article, he or she shall, in addition to any other penalties or remedies established by this
Article, be liable to the City Ethics Commission in the amount of twenty five dollars ($25)
per day after the deadline until the statement or report is filed. Liability need not be
enforced by the Commission if on an impartial basis it determines that the late filing was
not willful and that enforcement of the liability will not further the purposes of the Article,
except that no liability shall be waived if a statement or report is not filed within 30 days.




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                                                                 Los Angeles Campaign Finance Ordinance



SEC. 49.7.30            Severability
                        Amended by Ordinance No. 175344, effective 8/16/03.

If any provision of this ordinance, or its application to any person or circumstances, is held
invalid by any court, the remainder of this article or the application of the provision to
persons or circumstances other than those as to which it is held invalid, shall not be
affected by that determination, to the extent that the provision or its application can be
given effect, and to this extent the provisions of this ordinance are declared to be
severable.


SEC. 49.7.31            Operative Date
                        Amended by Ordinance No. 175344, effective 8/16/03.

The provisions of this ordinance shall be operative only for the regularly established
elections of the City of Los Angeles starting with the elections to be held during 2005, and
for any special elections to elect elective City officers held after May 20, 2003. The
provisions of this ordinance shall not be operative for the regularly scheduled elections of
the City of Los Angeles to be held during 2003, or for any special election to elect elective
City officers held on or before May 20, 2003.




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             Appendix 3

   Governmental Ethics Ordinance
(Los Angeles Municipal Code § 49.5.5)
     Governmental Ethics Ordinance

♦♦♦ Los Angeles Municipal Code Sections 49.5.1 et seq.

                                                    As of April 2008




                                                           Prepared by
                                          City Ethics Commission



                                                         CEC



                                                 Los Angeles


                                                                th
                                    200 North Spring Street, 24 Floor
                                               Los Angeles, CA 90012
                                                      (213) 978-1960
                                                 TTY (213) 978-2609
                                                http://ethics.lacity.org
                              Los Angeles Governmental Ethics Ordinance
                                        TABLE OF CONTENTS



SEC. 49.5.1               Title, Findings and Purposes..................................................................1

SEC. 49.5.2               Definitions ..............................................................................................2

  Administrative action .......................................................................................................2
  Agency ............................................................................................................................2
  Attempting to influence ....................................................................................................2
  City official .......................................................................................................................2
  Compensation .................................................................................................................3
  Confidential information...................................................................................................3
  Contract...........................................................................................................................3
  Co-owner.........................................................................................................................3
  Dependent child ..............................................................................................................4
  Direct communication ......................................................................................................4
  Disclosable ......................................................................................................................4
  Doing business with the city ............................................................................................4
  Elective city officer...........................................................................................................4
  Foreign gift ......................................................................................................................4
  Gift...................................................................................................................................5
  High level filer..................................................................................................................6
  High level official .............................................................................................................6
  Honorarium......................................................................................................................6
  Legislative action.............................................................................................................6
  License, permit or other entitlement for use ....................................................................6
  Lobbying firm...................................................................................................................6
  Lobbyist ...........................................................................................................................7
  Lobbyist employer ...........................................................................................................7
  Participant .......................................................................................................................7
  Party ................................................................................................................................7
  Pecuniary gain.................................................................................................................7
  Person .............................................................................................................................7
  Proceeding involving a license, permit or other entitlement for use.................................7
  Restricted source ............................................................................................................8

SEC. 49.5.3               Confidential Information .........................................................................9

SEC. 49.5.4               Protection of Employees Against Retaliation for Reporting
                          Fraud, Waste or Misuse of Office...........................................................9

SEC. 49.5.5               Misuse of City Position or Resources ..................................................10



                                                                    ii
SEC. 49.5.6    Disclosure of Economic Interests.........................................................11

SEC. 49.5.7    Disclosure By Nominees. .....................................................................20

SEC. 49.5.8    Divestiture of Assets. ...........................................................................20

SEC. 49.5.9    Restrictions on Honoraria and Outside Earned Income. ......................20

SEC. 49.5.10   Restrictions on Gifts and Travel Expenses...........................................22

SEC. 49.5.11   Lobbying Activities of Current and Former City Officials. .....................24

SEC. 49.5.12   Future Employment of City Officials .....................................................26

SEC. 49.5.13   Participation of Elective City Officers and Employees in
               Governmental Decisions ......................................................................27

SEC. 49.5.14   Application of Requirements.................................................................29

SEC. 49.5.15   Contract Bidder and Proposer Disclosure — Political
               Contributions and Fundraising Activity .................................................29

SEC. 49.5.16   Disclosure By Elective Officers in Connection with
               Lobbying Interests and City Contractors...............................................31

SEC. 49.5.17   Commissioner Participation in Contracting Process.............................34

SEC. 49.5.18   Ethics Training......................................................................................35

SEC. 49.5.19   Enforcement .........................................................................................35

SEC. 49.5.20   Late Filing Penalties .............................................................................38

SEC. 49.5.21   Effect of Campaign Money Laundering Violation on
               Contracts and Fee Waivers ..................................................................38

SEC. 49.5.22   Authority of Enact .................................................................................40

SEC. 49.5.23   Applicability of Other Laws ...................................................................41

SEC. 49.5.24   Severability...........................................................................................41




                                                     iii
                                                              Los Angeles Governmental Ethics Ordinance



                          Governmental Ethics Ordinance
                    Los Angeles Municipal Code Chapter IV, Article 9.5
                         Added by Ordinance No. 165618, effective 4/21/90.



SEC. 49.5.1          Title, Findings and Purposes

A.      Title. This Article shall be known as the City of Los Angeles Governmental Ethics
        Ordinance.

B.      Findings. The following findings are adopted in conjunction with the enactment of
        this Article:

        1.    As one of the great international cities of the world, Los Angeles will continue
              to confront great and complex opportunities and problems of both local and
              global significance.

        2.    One of the best ways to attract talented people to public service is to assure
              that the government is respected for its honesty and integrity; that its
              decisions are made on the merits, untainted by any consideration of private
              gain; and that the rules governing their conduct during and after leaving
              government service are as clear and complete as possible.

        3.    A governmental ethics ordinance that is as clear, tough, fair, comprehensive
              and effective as any in the nation is therefore needed.

C.      Purposes. This Article is adopted to accomplish the following purposes.

        1.    To assure that individuals and interest groups in our society have a fair and
              equal opportunity to participate in the governmental process.

        2.    To assure that the governmental process itself promotes fairness and equity
              for all residents of the City regardless of race, color, creed, religion, national
              origin, age, sex, marital status, sexual orientation or disability.

        3.    To require elected City officers and key City officials to disclose all
              investments, interests in real property and income in order to prevent
              conflicts of interest.

        4.    To prevent elected City officers and key City officials from receiving outside
              earned income that creates a potential conflict of interest.

        5.    To prevent certain City officials from lobbying the City for at least one year
              after they leave City service.




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        6.    To increase understanding of the City Charter, ordinances and the roles of
              elected City officers and other public officials, City agencies and the City
              election process.

        7.    To help restore public trust in governmental and electoral institutions.

        8.    To assure that this Article is vigorously enforced.


SEC. 49.5.2          Definitions
                     Amended by Ordinance No. 167949, effective 7/5/92.
                     Amended by Ordinance No. 168056, effective 8/8/92.
                     Amended by Ordinance No. 172891, effective 12/10/99.
                     Amended by Ordinance No. 173363, effective 7/29/00.
                     Amended by Ordinance No. 176824, effective 8/27/05.

The following terms used in this article shall have the meanings set forth below. Except
as otherwise provided herein, the terms and provisions of this Article shall have the
meanings and 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.

“Administrative action" means the proposal, drafting, development, consideration,
amendment, enactment or defeat by any City agency of any matter, including any rule,
regulation or other action in any regulatory proceeding or any proceeding involving a
contract, license, permit, franchise, or entitlement for use, whether quasi-legislative or
quasi-judicial. Administrative action does not include any action which is solely ministerial.

"Agency" means the City of Los Angeles or any department, bureau, office, board,
commission, other agency of the City, or any other government agency, required to adopt
a conflict of interest code subject to City Council approval. With respect to employees of a
Councilmember's staff and employees of the Chief Legislative Analyst's office, "agency"
means the City Council.

"Attempting to influence” means promoting, supporting, opposing or seeking to modify
or delay any action on municipal legislation (as defined in Section 48.02 of this Code) by
any means, including but not limited to providing or using persuasion, information,
statistics, analyses or studies.

"City Official" means any elective City officer, member, officer, employee, commissioner
or consultant of any agency required to adopt a conflict of interest code subject to City
Council approval, and who is required to file statements of economic interests pursuant to
the conflict of interest code of his or her agency.




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“Compensation” means the receipt of any monetary or non-monetary payment and
includes, but is not limited to, salary, wages, fees, partnership or other similar financial
interest, or any other payment or reimbursement for the services or time of the person.

"Confidential information" means information to which all of the following apply:

        (1)   At the time of the use or disclosure of the information, the information is not
              a public record subject to disclosure under the California Public Records Act.

        (2)   At the time of the use or disclosure of the information, the disclosure is
              prohibited by

              (i)    a statute, regulation, or rule which applies to the agency in which the
                     officer or employee serves; or

              (ii)   any limitation placed on outside employment pursuant to Section
                     49.5.11 of this Code.

        (3)   The use or disclosure of the information will have, or could reasonably be
              expected to have, a material financial effect on any investment or interest in
              real property which the officer or employee, or any person who provides
              pecuniary gain to the officer or employee in return for the information, has at
              the time of the use or disclosure of the information or acquires within 90
              days following the use or disclosure of the information.

“Contract” means without limitation any agreement, lease, right of entry, franchise, or
concession, including but not limited to agreements for the performance of any work or the
rendition of any service or the provisions of any materials, equipment or supplies to the
City of Los Angeles or to the public, which is let, awarded or entered into with, or on behalf
of, the City of Los Angeles by the City Council, any board or commission, office or
department and shall include departments which have control of their own funds.

"Co-owner" means a person who resides in, does business in, plans to do business in or
owns an interest in real property located within the City of Los Angeles, and either

        (1)   possesses a 10 percent or greater ownership, security, or leasehold interest
              in real property in which a filer also possesses an interest, or

        (2)   possesses a 10 percent or greater investment in a business entity in which a
              filer also owns an investment.

A “co-owner” does not include

        (1)   any member of the official's immediate family or




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        (2)   any commercial lending institution which made a loan in the lender's regular
              course of business on terms available to members of the public without
              regard to official status.

"Dependent child" means a child who is either

        (1)   unmarried, under the age of 21 and living in the same household as the filer
              or

        (2)   otherwise listed as a dependent of the filer for federal income tax purposes.

“Direct Communication” means appearing as a witness before, talking to (either by
telephone or in person), corresponding with (including sending electronic mail to), or
answering questions or inquiries from, any City official or employee, either personally or
through an agent.

"Disclosable" means an investment, interest in real property, source of income, gift, loan,
honorarium or travel expenses, or business position, which the filer is required to disclose
pursuant to Article 2 of Chapter 7 of the Political Reform Act of 1974, as amended, or
pursuant to the conflict of interest code of the filer's agency.

"Doing Business with the City" means entering into or performing pursuant to a contract
with the City of Los Angeles, an agency of the City or another local government agency
required to adopt a conflict of interest code subject to City Council approval. Doing
business with the City includes entering into or performing contracts for goods, equipment,
services or financial assistance but does not include the receipt of or payment for services
normally rendered by the City to residents and businesses such as sewer service, water
and power, street maintenance and the like.

"Elective City officer" means any person who is a City Council Member, City Attorney,
Controller or Mayor, whether appointed or elected.

"Foreign gift" means a gift from an individual domiciled in a foreign country, a foreign
government, or a business entity or other entity having its principal place of business
located in a foreign country, which gift is accepted by a City official either while that official
is traveling abroad or from the donor while that donor is visiting the United States. A
foreign gift includes

        (1)   an otherwise qualifying gift of food, beverages or customary business
              entertainment cumulatively valued at no more than $250 during any calendar
              year accepted by an official during the course and scope of official business
              and

        (2)   an otherwise qualifying gift which is accepted by the official on behalf of the
              City of Los Angeles and which gift is transmitted to and becomes the
              property of the City. A foreign gift does not include a gift from any



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                                                           Los Angeles Governmental Ethics Ordinance



              corporation organized under the laws of the United States, or under the laws
              of any state or territory of the United States.

"Gift" means, except as otherwise provided in this definition, any payment to the extent
that consideration of equal or greater value is not received and includes a 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 regard to official status. Any
person, other than a defendant in a criminal action, who claims that a payment is not a gift
by reason of receipt of consideration has the burden of proving that the consideration
received is of equal or greater value. The term "gift" does not include:

        (1)   Informational material such as books, reports, pamphlets, calendars,
              periodicals, seminars, or informational conferences, exclusively for official or
              office use and valued at less than $250 (except that such dollar limit does
              not apply to informational material received from a government agency). No
              payment for travel or reimbursement of any expenses shall be deemed
              "informational material."

        (2)   Gifts which are not used and which, within 30 days after receipt, are returned
              to the donor or delivered to a charitable organization without being claimed
              as a charitable contribution for tax purposes.

        (3)   Gifts from an individual's spouse, child, parent, grandparent, grandchild,
              brother, sister, parent-in-law, brother-in-law, sister-in-law, partner in a bona
              fide dating relationship, nephew, niece, aunt, uncle, or first cousin, or the
              spouse of any such person; provided that a gift from any such person shall
              be considered a gift if the donor is acting as an agent or intermediary for any
              person not covered by this paragraph.

        (4)   Campaign contributions required to be reported under Chapter 4 of the
              Political Reform Act of 1974, as amended.

        (5)   Any devise or inheritance.

        (6)   Personalized plaques and trophies with an individual value of less than two
              hundred fifty dollars ($250).

        (7)   Gifts of food, beverages or occasional lodging provided in an individual's
              home.

        (8)   Gifts valued at no more than $100 from an individual to a City official or to a
              member of the official's immediate family in connection with a non-recurring
              ceremonial occasion.




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"High Level Filer" means the Mayor, City Attorney, Controller, member of the City
Council, member of the City Ethics Commission and Executive Officer of the City Ethics
Commission.

"High Level Official" means the Mayor, the City Attorney, the Controller, the members of
the City Council, the Chief of Staff to the Mayor, the Assistant Chief of Staff to the Mayor,
each Deputy Mayor, the Special Assistant to the Mayor for Legal Affairs, the Executive
Assistant City Attorney, each Chief Assistant City Attorney, each Senior Counsel, the
Chief Deputy Controller, the Administrative Coordinator to the Controller, two members of
the staff of each City Council Office possessing the most decision-making responsibilities
relative to governmental policy as designated by each member of the Council, the
members of the City Ethics Commission, the Executive Officer of the City Ethics
Commission, the members of the City Planning Commission, the Director of Planning, the
members of the Board of Public Works, the Director of the Office of Administrative and
Research Services, each Assistant Director of the Office of Administrative and Research
Services, the Chief Legislative Analyst, each Assistant Chief Legislative Analyst, the
Treasurer, and the City Clerk. In addition, "high level official" means any other member of
the staff of an elected City officer possessing significant decision-making responsibilities
relative to governmental policy as may be designated in writing to the City Ethics
Commission by the elected City officer.

"Honorarium" means a payment for speaking at any event, participating in a panel or
seminar or engaging in any similar activity. An "honorarium" does not include free
admission, food, beverages and similar nominal benefits provided to an officer or
employee of the City at an event at which he or she speaks, participates in a panel or
seminar or performed a similar service, nor does it include reimbursement or advances for
actual intrastate travel or for necessary accommodations provided directly in connection
with the event.

"Legislative action" means the drafting, introduction, consideration, modification,
enactment, or defeat of any ordinance, charter amendment, resolution, amendment,
report, nomination or other matter by the City Council or by any committee, subcommittee
thereof, or by a member or employee of the City Council acting in his or her official
capacity. "Legislative action" also means the action of the Mayor in approving or vetoing
any ordinance or resolution.

"License, permit or other entitlement for use" means any business, professional, trade
or land use license or permit, any other entitlement for use, (including all entitlement for
land use), any contract (other than labor, personal employment, or competitively bid
contracts), and any franchise.

"Lobbying Firm" means any business entity, including an individual contract lobbyist,
which meets either of the following criteria:




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        (a)   the business entity received or becomes entitled to receive any
              compensation, other than reimbursement for reasonable travel expenses, for
              the purpose of influencing legislative or administrative action on behalf of
              any other person; and any partner, owner, officer, or employee of the
              business entity is a lobbyist; or

        (b)   the business entity receives or becomes entitled to receive any
              compensation, other than reimbursement for reasonable travel expenses, to
              communicate directly with any elective city officer, agency official, or
              legislative official for the purpose of influencing legislative or administrative
              action on behalf of any other person.

"Lobbyist" means any individual who is required to register as a lobbyist or municipal
legislative advocate pursuant to any City ordinance requiring such registration.

"Lobbyist Employer" means any person, other than a lobbying firm, who:

        (a)   Employs one or more lobbyists for economic consideration, other than
              reimbursement for reasonable travel expenses, for the purpose of
              influencing legislative or administrative action, or

        (b)   Contracts for the services of a lobbying firm for economic consideration,
              other than reimbursement for reasonable travel expense, for the purpose of
              influencing legislative or administrative action.

"Participant" means any person who is not a party but who actively supports or opposes
a particular decision in a proceeding involving a license, permit, or other entitlement for
use and who has a financial interest in the decision, as described in Article 1
(commencing with Section 87100) of Chapter 7 of the Political Reform Act of 1974, as
amended. A person actively supports or opposes a particular decision in a proceeding if
he or she lobbies in person the officers or employees of the agency, testifies in person
before the agency, or otherwise acts to influence officers of the agency.

"Party" means any person who files an application for, or is the subject of, a proceeding
involving a license, permit, or other entitlement for use.

"Pecuniary Gain" means any monetary benefit to a person or to a member of the
person's immediate family.

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

"Proceeding involving a license, permit or other entitlement for use" includes any
proceeding to grant, deny, revoke, restrict, or modify a license, permit or other entitlement
for use.



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"Restricted source" means the following with regard to each of the following classes of
City officials.

        (1)   With regard to "high level filers" and "high level officials," "restricted
                     source" means:

              (a)    a lobbyist, lobbying firm, or lobbyist employer;

              (b)    a person doing or seeking to do business with the City;

              (c)    a person who, during the reporting period, knowingly attempted to
                     influence the official in any legislative or administrative action which
                     would have a direct material financial effect on such person; or

              (d)    a person who is a party to a proceeding involving a license, permit or
                     other entitlement for use while a proceeding involving such matter is,
                     or within the prior nine months was, pending before the official or
                     before the City Council or a board, commission, committee, or other
                     similar body of which the official is a voting member, and for nine
                     months following the date a final decision is rendered in the
                     proceeding.

        (2)   With regard to filers other than "high level filers" and with regard to officials
              other than "high level officials," "restricted source" means:

              (a)    a lobbyist, lobbying firm, or lobbyist employer, seeking to influence
                     decisions of the filer's agency;

              (b)    a person doing or seeking to do business with the filer's agency;

              (c)    a person who, during the reporting period, knowingly attempted to
                     influence the official in any legislative or administrative action which
                     would have a direct material financial effect on such person;

              (d)    or a person who is a party to a proceeding involving a license, permit
                     or other entitlement for use while a proceeding involving such matter
                     is, or within the prior nine months was, pending before the official or
                     before a board, commission, committee or other similar body of which
                     the official is a voting member, and for nine months following the date
                     a final decision is rendered in the proceeding.

        (3)   With regard to all filers and all City officials, a "restricted source" does not
              include an individual (other than a lobbyist) who is employed by a restricted
              source, provided that the gift or income is neither paid for by the employer
              nor provided at the direction of the employer.




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SEC. 49.5.3           Confidential Information

No current or former officer or employee of the City shall use or disclose to any other
person for pecuniary gain or personal advantage or privilege, confidential information
acquired by him or her in the course of his or her official duties.


SEC. 49.5.4           Protection of Employees Against Retaliation for Reporting Fraud,
                      Waste or Misuse of Office
                      Amended by Ordinance No. 168708, effective 5/13/93.

A.      No officer or employee of the City shall use or threaten to use any official authority
        or influence to discourage, restrain or interfere with any other person for the
        purpose of preventing such person from acting in good faith to report or otherwise
        bring to the attention of the City Ethics Commission or other appropriate agency,
        office or department any information which, if true, would constitute: a work-related
        violation by a City officer or employee of any law or regulation, gross waste of City
        funds, gross abuse of authority, a specified and substantial danger to public health
        or safety due to an act or omission of a City official or employee, use of a City office
        or position or of City resources for personal gain, or a conflict of interest of a City
        officer or employee.

B.      No officer or employee of the City shall use or threaten to use any official authority
        or influence to effect any action as a reprisal against a City officer or employee who
        reports or otherwise brings to the attention of the Commission or other appropriate
        agency, office or department any information regarding the subjects described in
        Subsection A.

C.      Any person who believes that he or she has been subjected to any action
        prohibited by this section may file a confidential complaint with the City Ethics
        Commission. The City Ethics Commission shall thereupon investigate the
        complaint. Upon the conclusion of its investigation, the Commission shall take
        appropriate action as otherwise provided by law.

D.      In the event the Executive Officer of the City Ethics Commission determines the
        Commission has a conflict of interest in an investigation of a retaliation complaint,
        City Ethics Commission staff shall refer the investigation of the retaliation complaint
        to the Equal Employment Opportunities Section of the Human Resources and
        Benefits Division of the City Personnel Department. That agency shall report its
        findings to the City Attorney who shall take appropriate action as otherwise
        provided by law.




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SEC. 49.5.5           Misuse of City Position or Resources
                      Amended by Ordinance No. 172891, effective 12/10/99.

A.      No City official, employee of any agency, appointee awaiting confirmation by the
        Council, or candidate for elective City office shall use his or her position or
        prospective position, or the power or authority of his or her office or position, in any
        manner intended to induce or coerce any person to provide, directly or indirectly,
        anything of value which shall accrue to the private advantage, benefit, or economic
        gain, of the City official or employee, or of any other person. As used in this
        section, the term “private advantage, benefit, or economic gain” means any
        advantage, benefit or economic gain, distinct from that enjoyed by members of the
        public without regard to official status or not resulting naturally from lawful and
        proper performance of duties. A City official or employee engages in a prohibited
        use of his or her official position or prospective position when he or she engages in
        activities other than in the lawful and proper performance of the person's City
        duties.

B.      No City official or employee of an agency shall engage in campaign-related
        activities, such as fundraising, the development of electronic or written materials, or
        research, for a campaign for any elective office or ballot measure:

        1.     during the hours for which he or she is receiving pay to engage in City
               business; or

        2.     using City facilities, equipment, supplies or other City resources.

C.      No City official or employee of an agency shall engage in outside employment
        during any hours he or she is receiving pay to engage in City business.

D.      No person shall induce or coerce, or attempt to induce or coerce any other person
        to engage in any activity prohibited by Subsections B or C.

E.      Nothing in this section shall prohibit the use of City resources to provide information
        the public about the possible effects of any bond issue or other ballot measure
        relating to City activities, operations or policies, provided that (i) the use of public
        resources is otherwise legally authorized, and (ii) the information provided
        constitutes a fair and impartial presentation of relevant facts to aid the electorate in
        reaching an informed judgment regarding the bond issue or ballot measure.




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SEC. 49.5.6          Disclosure Regarding Economic Interests
                     Amended by Ordinance No. 167949, effective 7/5/92
                     Amended by Ordinance No. 173101, effective 3/27/00.
                     Amended by Ordinance No. 173138, effective 4/24/00.
                     Amended by Ordinance No. 173870, effective 5/14/01.
                     Amended by Ordinance No. 177190, effective 1/23/06.
                     Amended by Ordinance No. 177853, effective 10/7/06.

A.      Persons Required to File. The Mayor, City Attorney, Controller, members of the
        City Council, each chief administrative officer of a City department or office, and
        each member of a board or commission who is a designated employee pursuant to
        the conflict of interest Code of his or her agency shall file a statement of economic
        interests pursuant to the Political Reform Act of 1974, as amended, and shall
        additionally file a financial disclosure statement pursuant to the provisions of this
        section. There shall be two classes of filers,

        (1)   "high level filers” and

        (2)   "other filers,” who shall include all filers other than "high-level filers."

B.      Disclosure Periods and Filing Deadlines. On or before April 1 of each calendar
        year, all filers referred to in Subsection A shall file a statement of economic
        interests and a financial disclosure statement pursuant to this section, covering a
        disclosure period of January 1 through December 31 of the previous calendar year.
        On or before October 1 of each calendar year, all filers referred to in Subsection A
        shall either certify that there have been no changes in their reportable financial
        interests during the period of January 1 through June 30 or shall file a semi-annual
        financial disclosure statement disclosing any changes in their reportable financial
        interests which occurred during that period.

C.      Disclosure Requirements for High-Level Filers.

        1.    In addition to statements of economic interests filed pursuant to the Political
              Reform Act of 1974, as amended, high-level filers shall file financial
              disclosure statements disclosing the following financial interests:

              (a)    Any investment, regardless of whether the business entity is located
                     in; owns an interest in real property within; or does, within the prior
                     two years did, or plans to do business in the City of Los Angeles, and
                     the name and address of any co-owner of the business entity.

              (b)    Any interest in real property (other than a personal residence),
                     regardless of whether the real property is located within the
                     jurisdiction, and the name and address of any co-owner of such real
                     property.




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             (c)    Any income (including loans, honoraria, travel expenses, gifts, and
                    the filer's community property interest in income of a spouse)
                    regardless of whether the source of income resides in; owns an
                    interest in real property located within; or does, within the prior two
                    years did, or plans to do business in the City of Los Angeles.

             (d)    Separate property income (including loans, honoraria, travel
                    expenses and gifts) of a filer's spouse from a restricted source and
                    income of a dependent child from a restricted source.

             (e)    The name and address of each general partner of a partnership in
                    which the filer has an investment valued at $2,000 or more, together
                    with the name of the partnership.

             (f)    For any investment required to be disclosed by this subsection or any
                    interest in real property (including both an interest required to be
                    disclosed by this subsection and the filer's personal residence) that
                    was purchased during the reporting period:

                    (i)     the name of the business entity, or the location of the real
                            property by street address, city and state, provided, however,
                            that the address of the filer's personal residence need not be
                            disclosed;

                    (ii)    the purchase price of the investment or interest in real property
                            (rounded to the nearest $1,000);

                    (iii)   the name and address of the seller.

             The filer's initial financial disclosure statement shall disclose any such
             transaction which occurred within one year prior to the filing of such
             statement.

             This Paragraph (f) shall not require any disclosure relating to a transaction
             which occurred on a regulated trading market or stock exchange in
             connection with which the identities of the purchaser and seller are unknown
             to one another.

             (g)    For any investment required to be disclosed by this section or any
                    interest in real property (including both an interest required to be
                    disclosed by this subsection and the filer's personal residence) that
                    was sold during the reporting period:




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                   (i)     the name and address of the business entity, or the location of
                           the real property by street address, city and state, provided,
                           however, that the address of the filer's personal residence
                           need not be disclosed;

                   (ii)    the selling price of the investment or interest in real property
                           (rounded to the nearest $1,000);

                   (iii)   the name and address of the purchaser.

             This Paragraph (g) shall not require any disclosure relating to a transaction
             which occurred on a regulated trading market or stock exchange in
             connection with which the identities of the purchaser and seller are unknown
             to one another.

        2.   Except as otherwise provided in this subsection, the information required to
             be disclosed with respect to each financial interest, and the manner of
             disclosing that information, shall be the same as required by Article 2 of
             Chapter 7 of the Political Reform Act of 1974, as amended, or by the conflict
             of interest code of the filer's agency.

        3.   The value of investments, interests in real property and income (including
             loans, honoraria, travel expenses, spousal income and income of a
             dependent child) shall be disclosed in the following amounts:

             (a)   Investment and interests in real property:

                   (i)     between $2,000 and $9,999, the value rounded to the nearest
                           thousand;

                   (ii)    Between $10,000 and $99,999, the value rounded to the
                           nearest $10,000;

                   (iv)    Between $100,00 and $250,000, the value rounded to the
                           nearest $25,000; and

                   (v)     Over $250,000, the value rounded to the nearest $50,000.

             (b)   Income (including loans, honoraria, travel expenses, spousal income
                   and income of a dependent child):

                   (i)     between $500 and $1,000;

                   (ii)    Between $1,001 and $99,999, the value rounded to the
                           nearest $1,000;




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                     (iii)   At and above $100,000, the value rounded to the nearest
                             $10,000.

        4.    The value of real property shall be disclosed pursuant to Subdivision 3
              based on the County Assessor's assessed valuation of the property.

        5.    If an investment is listed on a securities exchange within the United States,
              the filer may, instead of disclosing the dollar value, disclose the largest
              number of shares of stock owned, or the highest par value of bonds or
              debentures owned, during the reporting period.

        6     If the actual value of an asset is not known by the filer, a good faith estimate
              based on a reasonable inquiry shall satisfy the requirement of this
              subsection. In no event shall a filer be required to retain the services of an
              appraiser in order to comply with this subsection.

D.      Disclosure Requirements For Other Filers.

        1.    In addition to statements of economic interests filed pursuant to the Political
              Reform Act of 1974, as amended, other filers shall file financial disclosure
              statements disclosing the following financial interests:

              (a)    Any disclosable investment.

              (b)    Any other investment, whether or not located within or doing business
                     in the City of Los Angeles, and whether or not owning an interest in
                     real property located within the jurisdiction, if any co-owner of the
                     business entity engages in any activity within the City of Los Angeles
                     described in or covered by the filer's disclosure category of his or her
                     agency's conflict of interest code. The name and address of any
                     disclosable co-owner of any such business entity shall also be
                     disclosed.

              (c)    Any disclosable interest in real property.

              (d)    Any other interest in real property, not located within the jurisdiction, if
                     any co-owner of the real property engages in any activity within the
                     City of Los Angeles described in or covered by the filer's disclosure
                     category of his or her agency's conflict of interest code. The name
                     and address of any disclosable co-owner of any such real property
                     shall also be disclosed.

              (e)    Any disclosable income (including loans, honoraria, travel expenses,
                     gifts and the filer's community property interest in income to a
                     spouse).




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             (f)   Separate property income (including loans, honoraria, travel
                   expenses, and gifts) of the filer's spouse from a restricted source and
                   income of a dependent child from a restricted source, if the source of
                   income would be a disclosable source if received directly by the filer.
                   Income to a spouse or dependent child does not include travel or
                   reasonable subsistence expenses, paid by a spouse's or dependent
                   child's employer for employment-related travel.

             (g)   The name and address of each general partner of a partnership in
                   which the filer has an investment (required to be disclosed by this
                   subsection) valued at $2,000 or more, together with the name of the
                   partnership. The identity of a partner is required to be disclosed by
                   this subsection only if the partner engages in any activity within the
                   City of Los Angeles described in or covered by the filer's disclosure
                   category of his or her agency's conflict of interest code.

             (h)   For any investment required to be disclosed by this subsection or any
                   interest in real property (including both an interest required to be
                   disclosed by this subsection and the filer's personal residence) that
                   was purchased during the reporting period from a person engaged in
                   the City of Los Angeles in an activity described in or covered by the
                   disclosure category of the filer's conflict of interest code:

                          (i)     the name of the business entity, or the location of the
                                  real property by street address, city and state, provided,
                                  however, that the address of the filer's personal
                                  residence need not be disclosed;

                          (ii)    the purchase price of the investment or interest in real
                                  property (rounded to the nearest $1,000);

                          (iii)   the name and address of the seller.

                   The filer's initial financial disclosure statement shall disclose any such
                   transaction which occurred within one year prior to the filing of such
                   statement.

                   This paragraph (h) shall not require any disclosure relating to a
                   transaction which occurred on a regulated trading market or stock
                   exchange in connection with which the identities of the purchaser and
                   seller are unknown to one another.




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             (i)    For any investment required to be disclosed by this subsection or any
                    interest in real property (including both an interest required to be
                    disclosed by this subsection and the filer's personal residence) that
                    was sold during the reporting period to a person engaged in the City
                    of Los Angeles in an activity described in or covered by the disclosure
                    category of the filer's conflict of interest code:

                    (i)     the name of the business entity, or the location of the real
                            property by street address, city and state, provided, however,
                            that the address of the filer's personal residence need not be
                            disclosed;

                    (ii)    the selling price of the investment or interest in real property
                            (rounded to the nearest $1,000);

                    (iii)   the name and address of the purchaser.

                    This Paragraph (i) shall not require any disclosure relating to a
                    transaction which occurred on a regulated trading market or stock
                    exchange in connection with which the identities of the purchaser and
                    seller are unknown to one another.

        2.   Except as otherwise provided in this subsection, the information and
             amounts required to be disclosed with respect to each financial interest, and
             the manner of disclosing that information, shall be the same as required by
             Article 2 of Chapter 7 of the Political Reform Act of 1974, as amended, or by
             the conflict of interest code of the filer's agency.

        3.   The value of real property shall be disclosed pursuant to Subdivision 3
             based on the County Assessor's assessed valuation of the property.

        4.   If an investment is listed on a securities exchange within the United States,
             the filer may, instead of disclosing the value, disclose the largest number of
             shares of stock owned, or the highest par value of bonds or debentures
             owned, during the reporting period.

        5.   If the actual value of an asset is not known by the filer, a good faith estimate
             based on a reasonable inquiry, shall satisfy the requirement of this
             subsection. In no event shall a filer be required to retain the services of an
             appraiser in order to comply with this subsection.




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E.      Additional Disclosure Requirement Pursuant To Regulations of the City
        Ethics Commission. The City Ethics Commission may, by regulation, require
        disclosure by filers of specific types of financial interests, in addition to those
        interests required to be disclosed pursuant to Subsection D of this section, if the
        interest could with reasonable foreseeability be affected materially by the filer's
        exercise of his or her official duties.

F.      Exception If Disclosure Would Violate Legally Recognized Privilege. A filer
        need not disclose the name of a person who paid fees or made payments to the
        filer or to a business entity in which the filer or the filer's spouse owns an
        investment if disclosure of the person's name would violate a legally recognized
        privilege under California law, such as but not limited to the attorney-client and the
        physician-patient privileges. Such person's name may be withheld in accordance
        with the rules relating to privilege applicable to disclosure under the California
        Political Reform Act of 1974, as amended, and pursuant to the procedure
        established by 2 California Code of Regulations Section 18740, as amended, or by
        a successor regulation.

G.      Disclosure by Consultants.

        1.     The City Ethics Commission shall adopt by regulation a definition of
               "consultants" who are required to file statements of economic interests. In
               addition to the disclosure requirements of the Political Reform Act, such
               consultants shall identify their other clients who paid them more than
               $10,000 during the previous year and shall disclose such other information
               that the Commission determines, by regulation, is necessary to identify
               potential conflicts of interest.

        2.     Each consultant who is required to file a statement of economic interest shall
               be required to attend a training program conducted or sponsored by the
               Commission.

H.      Semi-annual City Contract List. On a semi-annual basis, the City Ethics
        Commission shall publish a list identifying for each agency any person who, during
        the prior six months, was a party to a contract with the City, was a bidder on any
        City contract, or responded to a request for proposals for a contract with the City.

I.      Statements of City Related Business.

        1.     Each person holding an elective City office, each general manager of a
               department of City government, each member of a board of commissioners
               or any other board of City government, whether created by ordinance or by
               Charter, and each appointive officer named in the Charter, shall file
               Statements of City-Related Business with the City Ethics Commission in
               accordance with the provisions of this subsection. Such person shall file a




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              Statement of City-Related Business within ten (10) calendar days after each
             occurrence of one or more of the transactions or proceedings described in
             this subsection.

        2.   For the purposes of this subsection a Statement of City-Related Business
             shall disclose a transaction, or a proceeding, whether or not specifically
             provided for by law, wherein action was required or requested to be taken or
             withheld by the City or any of its officers or employees in their official
             capacity, if:

             (a)   It took place during the tenure of office of the person required to file
                   the statement; and

             (b)   It was participated in by that person, the spouse of that person, or a
                   business entity in which either that person, or a business entity in
                   which either that person or that person’s spouse or both in any
                   manner held a five percent (5%) or more ownership interest; and

             (c)   It involved:

                   (i)     the sale of real or personal property by or to the City, or

                   (ii)    the performance of services to the City pursuant to any
                           contract, or

                   (iii)   a grant, loan, or forgiveness or payment of indebtedness by or
                           to the City, or

                   (iv)    an application made to, or a grant made by, the City of any
                           license, certificate, permit, franchise, change of zone, variance,
                           credential, or any other form of benefit or relief.

        3.   A Statement of City-Related Business need not to include a listing of any
             application where applicable law requires the granting of the application
             without the exercise of judgment or discretion by an official or employee of
             the City.

        4.   The Statement of City-Related Business shall be in sufficient detail as to
             dates, amounts, identifying numbers or symbols, if any, locations, and
             subject matter to make the transactions or proceedings listed identifiable by
             reference to records of the City. It shall be filed on a form provided by the
             City Ethics Commission.

        5.   Each Statement shall be supported by a written certification or declaration
             signed under penalty of perjury by the person required to file, and shall
             become a public record when filed.



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        6.    Nothing in this subsection shall be construed to require a member of the
              Board of Education to file Statements of City-Related Business.

        7.    A Statement of City-Related Business filed pursuant to this subsection shall
              satisfy the requirements of Section 323.1 of the City Election Code.

J.      Recusal Notification

        1.    Each member of a City board or commission required to file statements of
              economic interests pursuant to the Political Reform Act of 1974, as
              amended, shall complete a “Recusal Notification Form” each time the
              member recuses himself or herself in relation to an actual conflict of interests
              or the appearance of a conflict of interests under any applicable law.

              (a)    The commission or board member shall submit a copy of the
                     completed Recusal Notification Form to the Executive Secretary for
                     the commission or board (or the person acting in that capacity) as
                     soon as possible after the posting of the agenda containing the item,
                     including continued items, involving the member’s conflict of interests.

              (b)    In addition, the commission or board member shall submit the
                     original, completed Recusal Notification Form, along with a copy of
                     the meeting agenda containing the item involving the commission or
                     board member’s conflict of interests to the Ethics Commission no later
                     than 15 calendar days after the date of the meeting at which the
                     commission or board member recused himself or herself.

              (c)    The commission or board member shall also submit the Recusal
                     Notification Form as described in (a) and (b) above to the Executive
                     Secretary and the Ethics Commission even if the commission or
                     board member will not be or was not present at the meeting, but
                     would have been required to recuse himself or herself on a matter
                     appearing on the commission or board agenda if the member had
                     been present.

        2.    The Recusal Notification Form shall be prescribed by the City Ethics
              Commission, but shall include at a minimum the following:

              (a)    Name of the commission/board member recusing himself or herself;

              (b)    Name of the board or commission of which he or she is a member;

              (c)    The date of the meeting at which the recusal occurred or would have
                     occurred;

              (d)    The agenda item number and brief description of the matter;



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              (e)    The specific economic or other outside interest causing recusal (for
                     example, personal residence, client of firm, source of income, board
                     member of organization); and

              (f)    Whether the matter concerns the making of a contract.


SEC. 49.5.7          Disclosure By Nominees
                     Amended by Ordinance No. 174613, effective 7/7/02.

A.      Each person nominated to a position in any government agency subject to a
        conflict of interest code, where appointment is subject to confirmation by the
        Council, shall file a financial disclosure statement with the City Ethics Commission
        in the form required by Section 49.5.6. The financial disclosure statement shall be
        filed within 21 days of the Mayor's transmission of the nominee's appointment to
        the Council.

B.      Prior to consideration of the confirmation of the nominee by the Council, the
        Commission shall review the statements filed pursuant to this section and shall
        report to the Council, or to its committee confirming the appointment, those
        investments, interests in real property or sources of income which the Commission
        determines would constitute a potential conflict of interest.


SEC. 49.5.8          Divestiture of Assets

Every City agency shall make every effort to avoid hiring or appointing City officials who
hold, and are unwilling or unable to sell, assets that would present significant and
continuing conflicts of interest.


SEC. 49.5.9          Restrictions on Honoraria and Outside Earned Income
                     Amended by Ordinance No. 168056, effective 8/8/92.

A.      Prohibition of Outside Earned Income — Elected City Officers. Pursuant to City
        Charter Section 218, the Mayor, City Attorney, Controller, and members of the City
        Council shall not receive any compensation, including honoraria, for their services
        other than that provided for by City Charter Section 218, except that which may be
        provided for their serving on governmental entities where payment is authorized for
        other governmental officers or employees serving in such capacity.

B.      Restrictions on Honoraria and Other Outside Earned Income — Other Full
        Time City Officials and Employees.

        1.    Except as provided in Subsection A of this section, no full time City official
              shall accept any honoraria or other outside earned income without the prior
              written approval of the general manager or other chief administrative officer


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             of his or her department, and, in the case of a source of income which the
             general manager or other chief administrative officer determines is a
             restricted source for that official, without the prior written approval of the City
             Ethics Commission.

        2.   The approval required by Subdivision 1 of this subsection shall be denied if
             the general manager, other Chief administrative officer or City Ethics
             Commission determines that the receipt of the income would be
             inconsistent, incompatible, in conflict with or inimical to the City official's
             official duties, functions or responsibilities. In so determining, the general
             manager, other Chief administrative officer and City Ethics Commission shall
             consider whether one or more of the following factors is applicable:

             (a)    Whether the payment or the services for which the payment would be
                    received creates the appearance of or involves actual use of public
                    office or employment or the time, facilities, equipment or supplies of
                    the official's agency, for private gain;

             (b)    Whether the payment or services for which the payment would be
                    received involves the acceptance by the official of any money or other
                    consideration from anyone other than his or her agency for the
                    performance of an act which the official, if not performing such act for
                    the outside source of income, would be required or expected to
                    render in the regular course or hours of his or her duties as a City
                    official;

             (c)    Whether the City official is in a position to make, to participate in
                    making, or to influence a potential governmental decision that could
                    foreseeably have a material financial effect on the source of income;

             (d)    Whether the payment or services for which the payment would be
                    received involves the performance of any act in other than an official
                    capacity which may later be subject, directly or indirectly, to the
                    control, inspection, review, audit or enforcement of any other official
                    of his or her agency;

             (e)    Whether the services involve such time demands that would render
                    the official's performance of his or her official duties less efficient.

        3.   A request to the City Ethics Commission for approval pursuant to this
             subsection shall be treated as a request for written advice.




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        4.     In the case of a request for approval by a member of the Board of Public
               Works or by any general manager or other chief administrative officer of any
               agency, the request shall be made to his or her appointing authority and, if
               required by Subdivision 1, to the City Ethics Commission. In the case of a
               request for approval by an employee of the office of a member of the City
               Council, the request shall be made to that member of the City Council and, if
               required by Subdivision 1, to the City Ethics Commission.


SEC. 49.5.10          Restrictions on Gifts and Travel Expenses
                      Amended by Ordinance No. 168056, effective 8/8/92.
                      Amended by Ordinance No. 178064, effective 1/15/07.

A.      Restrictions on Gifts.

        1.     No person shall offer or make, and no City official shall solicit or accept, any
               gift with the intent that the City official will be influenced thereby in the
               performance of any official act.

        2.     No City official shall knowingly solicit any gift from a restricted source.

        3.     Except in the case of a lobbyist or lobbying firm, no person who is a
               restricted source shall offer or make, and no City official shall accept, any gift
               from a restricted source which would cause the cumulative amount of gifts
               from such source to the City official to exceed $100 during any calendar
               year.

        4.     No lobbyist or lobbying firm shall make, and no City official shall accept, any
               gift from a lobbyist or lobbying firm which is a restricted source as to that
               official.

        5.     No lobbyist or lobbying firm shall act as an agent or intermediary in the
               making of any gifts or arrange for the making of any gift by another person to
               any City official.

        6.     The provisions of Subdivision 3 of this subsection do not apply to foreign
               gifts made to an officer or employee of the City when representing the
               Department of Airports or the Harbor Department, which gift is disclosed by
               that official to the City Ethics Commission within 30 days after receipt on a
               form prescribed by the Commission.

        7.     For the purpose of this subsection, the term "gift" does not include:

                 (a) Items received by a City official which are not kept but which are
                     turned over to the City within 30 days after their receipt.




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               (b) Meals provided to a City official at an event at which the official
                   speaks, participates in a seminar or similar activity or provides a
                   similar service.

               (c) Travel expenses and meals paid for by a local, state, federal or
                   foreign government agency.

               (d) Items received by a bargaining unit member from a union
                   representing that City official.

               (e) Food and beverages received from any union by a City official who is
                   a member of a union representing a bargaining unit of City officials.

               (f)   Payment for travel expenses from a campaign committee; a nonprofit
                     organization of which the City official is a member; or an organization
                     of which the City, an agency, or the official is a member acting in an
                     official City capacity.

               (g) Gifts to non-elected City official for legal expenses related to an
                   enforcement action brought under City or state ethics laws.

        8.   A City official may request the City Ethics Commission to provide that official
             with written advice concerning the legality of accepting any specific gift.
             Such request shall contain sufficient information to allow the Commission or
             its staff to properly consider the matter. The Commission or its staff shall
             provide written advice in response to such a request within 10 working days
             after the Commission's receipt of the request.

B.      Restrictions on Travel Advances and Reimbursements.

        1.   No person shall offer or make, and no City official shall solicit or accept, any
             advance or reimbursement for travel expenses (including related lodging and
             reasonable subsistence expenses) with the intent that the City official will be
             influenced thereby in the performance of any official act.

        2.   No person who is a restricted source shall offer or make, and no City official
             shall accept from a restricted source as to that official, any advance or
             reimbursement for travel expenses (including related lodging and reasonable
             subsistence expenses).

        3.   No lobbyist or lobbying firm shall act as an agent or intermediary in the
             making of, or arrange for the making of, any advance or reimbursement for
             travel expenses (including related lodging and reasonable subsistence
             expenses) by another person, to any City official.




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        4.     The payment for travel expenses of a City official traveling on government
               business shall not be prohibited by this section in any case where the
               payment is a gift or other payment to the City of Los Angeles or to any
               government agency for which the City Council is the code reviewing body
               with respect to that agency's conflict of interest code, rather than a gift or
               income to the official, within the meaning of the Political Reform Act of 1974,
               as amended, and the regulations of the Fair Political Practices Commission.

        5.     Travel expenses subject to the prohibitions of this subsection include
               expenses for intrastate travel and lodging related to a City official's speaking
               at an event, participating in a seminar or providing similar services,
               notwithstanding the provisions of Title 2, California Code of Regulations,
               Section 18728, or any successor section.

        6.     Travel expenses subject to the prohibitions of this subsection do not include
               any payment for travel expenses from a campaign committee; a nonprofit
               organization of which the City official is a member; or an organization of
               which the City, an agency, or the official is a member acting in an official City
               capacity.

        7.     This subsection does not limit travel expenses and meals paid for by a local,
               state, federal or foreign government agency.


SEC. 49.5.11          Lobbying Activities of Current and Former City Officials
                      Amended by Ordinance No. 176823, effective 8/27/05.
                      Amended by Ordinance No. 178064, effective 1/15/07.

A.      No former City official or employee of any agency (as defined in Section 49.5.2)
        who personally and substantially participated in a decision, proceeding, claim,
        contract, legislation or other specific matter during his or her City service, shall, for
        compensation, attempt to influence any action on that specific matter on behalf of
        any person other than an agency. This prohibition applies only if the specific matter
        is still pending before an agency or if an agency is a party to or has a direct or
        substantial interest in the specific matter. For purposes of this provision, “personal
        and substantial” participation includes, but is not limited to, making or voting on a
        decision or making a recommendation, rendering advice, investigation or
        conducting research.

B.      No former City official or agency employee shall, for compensation, knowingly
        counsel, or assist any other person other than an agency (as defined in Section
        49.5.2) in connection with an appearance or communication in which the former
        official or employee is prohibited from engaging pursuant to Subsection A.

C.      The prohibitions contained in Subsections A and B shall not apply:




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        1.     To prevent a former City official or agency employee from making or
               providing a statement, based on the former official's or employee's own
               special knowledge in the particular area that is the subject of the statement,
               provided that no compensation is thereby received other than that regularly
               provided for by law or regulation for witnesses.

        2.     To communications made solely for the purpose of furnishing information by
               a former City official or agency employee if the court or agency to which the
               communication is directed makes written findings that:

               (a)    The former official or employee has outstanding and otherwise
                      unavailable qualifications;

               (b)    The former official or employee is acting with respect to a particular
                      matter which requires such qualifications; and

               (c)    The public interest would be served by the participation of the former
                      official or employee.

        3.     With respect to appearances or communications in a proceeding in which a
               court or agency has issued a final order, decree, decision or judgment but
               has retained jurisdiction, if the agency of former employment gives its
               consent by determining that:

               (a)    At least five years has elapsed since the termination of the former
                      official's or employee's employment or term of office; and

               (b)    the public interest would not be harmed.

D.      For two years after leaving City service, no former elected City officer who left City
        service on or after January 1, 2007 shall, for compensation, engage in direct
        communication with any agency for the purpose of attempting to influence any
        action or decision on any matter pending before an agency on behalf of any person
        other than an agency. For one year after leaving City service, no other former
        elected City officer, member of the City Ethics Commission or other former high
        level official shall, for compensation, engage in direct communication with any
        agency for the purpose of attempting to influence any action or decision on any
        matter pending before an agency on behalf of any person other than an agency.

E.      For one year after leaving City service, no former City official shall for a
        compensation, engage in direct communication with any agency in which he or she
        served during the twelve month period preceding his or her departure from City
        service, for the purpose of attempting to influence any action or decision on any
        matter pending before that agency on behalf of any person other than an agency.
        For purposes of this subsection, the agency of a City Council office employee
        means his or her former Council office and the Councilmember of that district.



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F.      For purposes of this section, a decision does not include any ministerial action. A
        ministerial action is one that does not require a City official or employee to exercise
        discretion concerning any outcome or course of action.

G.      Upon the petition of any interested person or party, a court or the presiding or other
        officer, including but not limited to any hearing officer, in any judicial, quasi-judicial
        or other proceeding, may, after notice and an opportunity for a hearing, exclude any
        person found to be in violation of this section from further participation, or from
        assisting or counseling any other participant, in the proceeding then pending before
        such court or presiding or other officer.

H.      No provision contained in this section shall prevent any former City official from
        representing himself or herself, or any member of his or her immediate family, in
        their individual capacities, in connection with any matter pending before an agency.

I.      This section shall not apply to the activities of any former City official or employee
        who is an elected or appointed officer or employee of any city, county, district,
        multi-jurisdictional, state or federal government agency, when that former City
        official or employee is solely representing that agency in his or her official capacity
        as an officer or employee of the agency.

J.      No member of a board or commission of the City shall, for compensation,
        communicate directly, either personally or through his or her agent(s) at the
        member’s behest, with any City official for the purpose of attempting to influence
        action on municipal legislation on behalf of any other person. For the purposes of
        the subsection, “municipal legislation” shall have the meaning set forth in Section
        48.02 of this Code. This subsection is applicable only to members of those boards
        and commission[s] of the City who are required to file statements of economic
        interests pursuant to the Political Reform Act of 1974, as amended. Nothing in this
        subsection shall prohibit a member of a City board or commission from appearing
        before any City agency in the same manner as any other member of the general
        public solely to represent himself or herself on a matter related to his or her
        personal interests.


SEC. 49.5.12          Future Employment of City Officials
                      Amended by Ordinance No. 168057, effective 8/8/92.

A.      No member of the City Council or member of any board, commission, committee or
        other such voting body of any agency who is required to file statements of
        economic interests pursuant to the California Political Reform Act, shall directly or
        indirectly, knowingly or willfully negotiate the possibility of future employment with
        any person (other than a government agency) who has a matter within the
        regulatory, proprietary, or contractual jurisdiction of his or her agency currently
        pending before that officer or employee or before any body of which he or she is a
        voting member.



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B.      No other City official shall, directly or indirectly, knowingly or willfully negotiate the
        possibility of future employment with any person (other than a government agency)
        who has a matter within the regulatory, proprietary, or contractual jurisdiction of his
        or her agency currently pending before that officer or employee.

C.      No person who has a matter pending before a City official, or before any body of
        which the official is a voting member shall, directly or indirectly, knowingly or
        willfully negotiate the possibility of future employment of that City official.

D.      No City official shall make, participate in making or use his or her official position to
        influence a decision involving the interests of a person with whom he or she has an
        agreement concerning future employment.


SEC. 49.5.13          Participation of Elective City Officers and Employees in
                      Governmental Decisions
                      Amended by Ordinance No. 175344, effective 8/16/03.

A.      In addition to the requirements of Government Code Sections 87100, et seq., no
        officer or employee of the City shall knowingly make, participate in making, or
        attempt to use his or her official position to influence any governmental decision
        directly relating to any contract where the City official knows or has reason to know
        that any party to the contract is a person by whom the City official was employed
        immediately prior to entering government service within 12 months prior to the time
        the official acts on the matter.

B.      Any person that meets either of the criteria set forth in Subdivisions 1 and 2 below
        and that makes one or more payments in the aggregate amounts set forth in
        Subsection C for independent expenditures or non-behested member
        communications to support the candidacy of an individual who is thereafter elected
        or reelected to an elective City office shall file a report with the City Ethics
        Commission, disclosing the information set forth after each of the criteria:

        1.     The person is directly involved in a decision before an elected City officer,
               and within 12 months prior to the decision, the person made one or more
               independent expenditures or one or more payments for member
               communications in support of that officer at the time the officer was
               campaigning for election or reelection to any office.

               (a)    The person shall disclose the filer’s name, address and telephone
                      number; the elected City official in support of whom the payment was
                      made; the date(s) and amount(s) of the payment(s); the identity of the
                      matter on which the decision is made; and the date on which the
                      person became directly involved in the decision.




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              (b)    The provisions of 2 Cal. Code Regs. § 18704.1 (a)(1) and (2) shall
                     govern when a person is “directly involved” in a decision before an
                     elected City official within the meaning of this section.

              (c)    Disclosure shall be made within 48 hours after the person making the
                     expenditure (i) becomes directly involved in a decision that will or may
                     come before the elected City officer in whose support the payment
                     was made and (ii) makes the expenditure.

        2.    The person, or any other person acting on behalf of the person, attempts to
              influence an elected City officer with respect to any matter of municipal
              legislation as defined by Section 48.02 of this Code, and within 12 months
              prior to the decision, the person made one or more independent
              expenditures or one or more payments for member communications in
              support of that officer at the time the officer was campaigning for election or
              reelection to any office.

              (a)    The person shall disclose the filer’s name, address and telephone
                     number; the elected City official in support of whom the payment(s)
                     was (were) made; the date(s) and amount(s) of the payment(s); the
                     identity of the municipal legislation; whether the person attempted to
                     influence the officer directly or through another person, and, if the
                     latter, the name and address of the other person; and the date(s) of
                     the attempt(s) to influence.

              (b)    Disclosure shall be made within 48 hours after each attempt to
                     influence.

C.      The following are the aggregate amounts triggering the disclosure required by
        Subsection B:

        1.    $100,000 or more in the case of a Mayoral candidate in a primary or general
              election;

        2.    $50,000 or more in the case of a City Attorney or Controller candidate in a
              primary or general election; and

        3.    $25,000 or more in the case of a City Council candidate in a primary or
              general election.

D.      For purposes of this section, a payment is deemed to be made for an expenditure
        supporting an elected City officer if the person making the payment is required to
        disclose that fact pursuant to Section 49.7.26 of this Code.




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E.      The disclosures required by this section shall be made on a form provided by the
        Commission, shall be verified under penalty of perjury and shall be filed by fax,
        certified mail, or hand delivery to the Commission.


SEC. 49.5.14          Application of Requirements

The requirements imposed by this Article on officers and employees shall not apply to any
officer or employee who terminated his or her City service prior to the effective date of this
Article; provided, however, that a person who returns to City service on or after the
effective date of this article shall be subject to the requirements of this Article.


SEC. 49.5.15          Contract Bidder and Proposer Disclosure — Political
                      Contributions and Fundraising Activity
                      Added by Ordinance No. 175432, effective 1/1/04.

A.      Any person who submits a written response to a request for proposals, request for
        bids, statement of qualifications or other document submitted for the purpose of
        entering into a procurement, services, or construction contract with the City that
        requires approval by the Council and/or the Mayor or is subject to Council review
        pursuant to Charter Section 245 shall file a Contract Bidder Contribution and
        Fundraising Activity Disclosure Form. The form shall be filed with the City Ethics
        Commission no later than two business days after the due date of the bid or
        proposal document. On that form, the filer shall disclose:

        1.     The name, address and telephone number of the filer.

        2.     An identification or description of the contract and the deadline date for
               submitting bids or proposals.

        3.     The name and title of the filer’s president; chief executive officer; any
               individual owning more than a 50 percent interest in the filer; any officer,
               director, owner, employee or other person who is authorized in the bid or
               proposal document to represent the filer before the City of Los Angeles.

        4.     The name, address, and contact phone number for any subcontractor to the
               bid or proposal.

        5.     The following information concerning contributions aggregating $100 or
               more made during the 12 month period prior to submission of the filer’s bid
               or proposal document by the filer or by any person referred to in Subdivision
               3 to any elective City officer or candidate for elective City office, and/or to
               any or all of his or her City controlled committees, or to any other candidate
               and/or his or her controlled committees at the behest of an elective City
               officer or candidate for elective City office:



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             (a)    The name, and, if other than the filer, the address of the contributor.

             (b)    The name of the officer, candidate or committee to which each
                    contribution was made.

             (c)    The name of the candidate or elective City officer who controls the
                    committee.

             (d)    The amount and date of each contribution made to the committee
                    within 12 months prior to submission of the filer’s bid or proposal
                    document.

             (e)    A statement whether the contribution was made at the behest of an
                    elective City officer, candidate for elective City office or controlled
                    committee of the officer or candidate. For purposes of this section, a
                    contribution is "made at the behest" of a candidate or officeholder
                    when it is made under the control of or at the direction of, or in
                    cooperation, consultation, coordination, or concert with, or at the
                    request or suggestion of, or with the express, prior consent of that
                    candidate or officeholder.

        6.   The name of any elective City officer, candidate for elective City office,
             and/or any and all of his or her City controlled committees for which the
             contract bidder or proposer engaged in any fundraising activity or delivered
             or acted as intermediary for one or more contributions to the officer,
             candidate and/or any [of] his or her City controlled committees during the
             reporting period, the date(s) of the activity and the amount of funds the
             contract bidder or proposer knows or has reason to know were raised as a
             result of the activity.

        7.   For purposes of this notification, if a fundraising event is sponsored or
             hosted by more than one person, the amount of contributions received at or
             as a result of the event shall be attributed to each contract bidder or
             proposer who hosted or sponsored the event according to the amount of the
             contributions that resulted from each contract bidder or proposer’s
             fundraising activities. If a contribution results from the fundraising activities
             of more than one person and/or contract bidder or proposer, that contribution
             shall be apportioned equally to each person and/or contract bidder or
             proposer engaged in the fundraising activity.

        8.   If no reportable contributions were made, and the contractor did not deliver
             or act as intermediary for any contributions, and no fundraising activity
             occurred during the relevant period by the filer or by any person referred to
             in Subdivision 3, the filer shall state that fact on the Contract Bidder
             Disclosure Form.




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        9.     Any other information required by regulation of the City Ethics Commission
               consistent with the purposes and provisions of this section.

B.      Any person who is awarded a contract referred to in Subsection A shall, in addition
        to the requirements of Subsection A, file a Contract Bidder Contribution and
        Fundraising Activity Disclosure Form with the City Ethics Commission within 14
        calendar days after the contract is awarded. On that form, the filer shall disclose
        the same information required to be filed by Subsection A, except that the form
        shall disclose this information for the period between the date the bid or proposal
        document was submitted and the date on which the contract was awarded.

C.      Each department shall include in each request for bids or proposals packet the
        Contract Bidder Contribution and Fundraising Activity Disclosure Form and
        Instructions to all bidders and proposers on contracts that require approval by the
        Council and/or the Mayor or is subject to Council review pursuant to Charter
        Section 245.

D.      The form shall be considered filed on the date of the postmark or on the date of
        delivery to the City Ethics Commission, whichever is earlier.

E.      The form shall be verified under penalty of perjury by the individual filing it or by an
        officer of the entity authorized to file it.

F.      The City Ethics Commission shall post the information in the notice on its website
        within one business day of its receipt of the notice. The City Clerk shall make the
        notice available for inspection within one business day of its receipt.

G.      If after the Disclosure Form is filed, but before the award of the contract, the bidder
        or proposer makes further contributions or engages in further fundraising activities
        required to be disclosed by this section, the bidder or proposer shall file an
        amendment to the Disclosure Form containing all of the information required by this
        section for each contribution or fundraising activity. The amendment shall be filed
        with the City Ethics Commission within one business day after the filer knows or
        has reason to know that a fundraising activity occurred or resulted in any reportable
        contribution.


SEC. 49.5.16          Disclosure By Elective Officers in Connection with Lobbying
                      Interests and City Contractors
                      Added by Ordinance No. 175432, effective 9/28/03.

A.      Lobbying Entities. An elective City officer shall make a written disclosure in the
        event that the elective officer makes, participates in making, or in any way attempts
        to use his or her official position to influence any City decision on any matter in
        connection with which a lobbying entity has attempted to influence that officer (for
        other than on the lobbyist’s own personal behalf) if the elective City officer knows or
        has reason to know that the lobbying entity did any of the following:


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        1.   Within the prior 12 months made one or more contributions aggregating
             more than $7,000 to the elective City officer and/or any and all of his or her
             controlled committees.

        2.   Within the prior 12 months

             (i)     delivered or acted as an intermediary for one or more contributions to
                     the elective City officer and/or any or all of his or her controlled
                     committees, or

             (ii)    engaged in fundraising activities on behalf of the elective City officer
                     and/or any or all of his or her controlled committees, if

             (iii)   the lobbying entity knows or has reason to know that any or all of the
                     lobbying entity’s activities resulted in the receipt of contributions
                     aggregating more than $15,000 in the case of a member of the City
                     Council, or more than $35,000 in the case of the Mayor, City Attorney,
                     or Controller.

        3.   Currently has or within the prior 12 months had a "business relationship" with
             the elective City officer. For purposes of this section, a "business
             relationship" between an elective City officer and a lobbying entity exists
             when any of the following occur:

             (a)     An elective City officer and/or any or all of his or her controlled
                     committees paid the lobbyist or lobbying firm to act as a campaign
                     manager, campaign consultant, campaign fundraiser, or other
                     campaign professional for the officer, and/or any or all of his or her
                     controlled committees.

             (b)     An elective City officer, and/or any or all of his or her controlled
                     committees, paid the lobbyist or lobbying firm to provide legal or other
                     professional services relating to the officer’s status or activities as an
                     elective officer and valued in the aggregate at more than $1,000
                     during any calendar quarter.

             (c)     An elective City officer was the beneficiary of one or more "activity
                     expenses" within the meaning of Section 48.02 of this Code by the
                     lobbyist, lobbying firm or lobbyist employer aggregating more than
                     $1,000, including, but not limited to, free legal or other services.




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                                                             Los Angeles Governmental Ethics Ordinance



B.      Contract Bidders and/or Proposers. An elective City officer shall make a written
        disclosure in the event that the elective officer makes, participates in making, or in
        any way attempts to use his or her official position to influence a decision of any
        City agency concerning a City contract if the elective City officer knows or has
        reason to know that the contract bidder or proposer on that contract did any of the
        following:

        1.     Within the prior 12 months made one or more contributions to the elective
               City officer and/or any or all of his or her controlled committees aggregating
               more than $7,000;

        2.     Within the prior 12 months

               (i)     delivered or acted as an intermediary for one or more contributions to
                       the elective City officer and/or any or all of his or her controlled
                       committees; or

               (ii)    engaged in fundraising activities on behalf of the elective City officer
                       and/or any of his or her controlled committees if

               (iii)   the bidder or proposer knows or has reason to know the activities
                       resulted in the receipt of contributions aggregating more than $15,000
                       in the case of a member of the Council, or more than $35,000 in the
                       case of the Mayor, City Attorney, or Controller.

        For purposes of this section, a “contract bidder or proposer” includes a bidder’s or
        proposer’s president and chief executive officer; any individual owning more than a
        50 percent interest in a bidder or proposer; and any officer, director, owner or
        employee of a bidder or proposer or other person who is authorized in the bid or
        proposal document to represent the bidder or proposer before the City of Los
        Angeles.

        The provisions of this section shall not apply to any contract governed by Charter
        Section 609(e).

C.      For purposes of this section, a “controlled committee” does not include any
        committee controlled by an elective City officer that is

        (a)    formed to support or oppose a ballot measure or

        (b)    formed to support the election of that officer to other than elective City
               office.

D.      The disclosure provisions of this section are triggered only by contributions made,
        received or transmitted, or fundraising activities engaged in, or business
        relationships engaged in on or after January 1, 2004.



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                                                               Los Angeles Governmental Ethics Ordinance



E.      Form of Disclosure. When the Mayor, City Attorney, Controller, or a member of
        the City Council is required by this section to provide written disclosure, the elective
        City officer shall file a written disclosure within two business days of making,
        participating in making, or in any way attempting to use his or her official position to
        influence a City decision.

        1.     The form shall include:

               (a)    The name, elective City office, and signature of the elective officer;

               (b)    The date the elective officer took action on the matter;

               (c)    The name of any lobbying entity, contract bidder or proposer whose
                      contributions, fundraising activity, or business relationship is the
                      cause of the disclosure;

               (d)    The matter(s) on which the officer is disclosing;

               (e)    If applicable, the amount of contributions the lobbying entity, contract
                      bidder or proposer fundraised, made, delivered, or for which it acted
                      as intermediary; and

               (f)    If applicable, the nature of the business relationship giving rise to the
                      elective officer’s disclosure.

        2.     The original form shall be filed with the City Ethics Commission. A copy of
               the form shall be filed with the City Clerk.

        3.     The City Ethics Commission shall post the information in the Notification on
               its website within one business day of its receipt of the notice. The City Clerk
               shall make the notice available for inspection within one business day of its
               receipt.

F.      Compliance Activities. Elective City officers and members of their City staffs are
        allowed to use City time, facilities, equipment and supplies to track the information
        necessary and to perform other necessary activities directly related to assisting the
        elective City officers in complying with the disclosure requirements of this article.
        Those activities shall constitute City business.


SEC. 49.5.17          Commissioner Participation in Contracting Process
                      Repealed by Ordinance No. 172891, effective 12/11/99.
                      Amended by Ordinance No. 176824, effective 8/27/05.

A.      Except as provided below, no member of a Board or Commission shall participate
        in or otherwise be involved in the development, review, evaluation, negotiation and
        recommendation process of bids, proposals or any other submittals or requests for


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                                                               Los Angeles Governmental Ethics Ordinance



        the award of a contract, contract amendment, or change order involving that Board,
        Commission, Office or Department.

B.      This Section does not preclude a Board or Commission, acting as a body, from
        reviewing staff recommendations when considering award of a contract, contract
        amendment or change order; providing direction to the general manager on
        contract requirements and negotiations; or considering proposals or other requests
        submitted for the award of a contract, contract amendment or change order. Nor
        does this Section preclude the efforts of individual members in reviewing
        documents and other information provided by or available from staff when
        preparing for the meetings of the full Board or Commission or committee at which
        the matter will be considered.

        Additionally, if the Board or Commission so approves, a committee of at least two
        members of the body may participate in the review of staff recommendations
        regarding the award of a contract, contract amendment, or change order; consider
        proposals or other requests submitted for the award of a contract, contract
        amendment or change order; and/or conduct subsequent negotiations on terms or
        conditions of a contract within the criteria established by that Commission or Board.
        All participation by committees shall take place only in publicly-noticed meetings
        pursuant to the Ralph M. Brown Act.


SEC. 49.5.18          Ethics Training
                      Repealed by Ordinance No. 172891, effective 12/11/99.
                      Amended by Ordinance No. 178064, effective 01/15/07.

All City officials are required to participate in an ethics training no less than once every
two years conducted by the City Ethics Commission, in partnership with the Office of the
City Attorney. These training sessions shall be structured to assure that each participant
has the knowledge to comply fully with all of the relevant ethics laws governing their
service to the City of Los Angeles.


SEC. 49.5.19          Enforcement
                      Repealed by Ordinance No. 170538, effective 7/13/95.
                      Amended by Ordinance. No. 175877, effective 5/5/04.

A.      Criminal Enforcement.

        1.     Any person who knowingly or willfully violates any provision of this article is
               guilty of a misdemeanor. Any person who knowingly or willfully causes any
               other person to violate any provision of this article, or who aids and abets
               any other person in the violation of any provision of this article, shall be liable
               under the provisions of this section.




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                                                            Los Angeles Governmental Ethics Ordinance



        2.    Prosecution of violation of any provision of the article shall be commenced
              within four years after the date of the violation.

        3.    No person convicted of a misdemeanor under this article shall act as a
              lobbyist or as a City contractor for a period of four years following the date of
              the conviction unless the court at the time of sentencing specifically
              determines that this provision shall not be applicable.

        4.    For the purposes of this section, a plea of nolo contendere shall be deemed
              a conviction.

B.      Civil Actions.

        1.    Any person who intentionally or negligently violates any provision of this
              article shall be liable in a civil action brought by the City Attorney, the City
              Ethics Commission or by any person residing within the City for an amount
              not more than $5,000 per violation, or for more than three times the amount
              the person failed to report properly or unlawfully contributed, expended,
              gave or received, whichever is greater.

        2.    If two or more persons are responsible for any violation, they shall be jointly
              and severally liable.

        3.    Any person, other than the City Attorney, before filing a civil action pursuant
              to this subsection, shall first file with the City Ethics Commission a written
              request for the Commission to commence the action. The request shall
              contain a statement of the grounds for believing a cause of action exists.
              The Commission shall respond within 40 days after receipt of the request
              indicating whether it intends to file a civil action. If the Commission indicates
              in the affirmative and files an action within forty days thereafter, no other
              action may be brought unless the action brought by the Commission is
              dismissed without prejudice.

        4.    In determining the amount of liability, the court may take into account the
              seriousness of the violation and the degree of culpability of the defendant. If
              a judgment is entered against the defendant or defendants in an action, a
              private plaintiff shall receive fifty percent (50%) of the amount recovered.
              The remaining fifty percent shall be deposited into the City's General Fund.
              In an action brought by the City Attorney or the Commission, the entire
              amount shall be paid to the General Fund.

        5.    No action alleging a violation of this article may be filed more than four years
              after the date the violation occurred.

C.      Injunctive Relief. Any person residing within the City of Los Angeles including the
        City Attorney, may sue for injunctive relief to enjoin violations or to compel
        compliance with the provisions of this article.


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                                                              Los Angeles Governmental Ethics Ordinance




D.      Costs of Litigation. The court may award to a party, other than an agency, who
        prevails in any civil action authorized by this article, his or her costs of litigation,
        including reasonable attorneys' fees. If the costs or fees are awarded against the
        City, the payment of such award shall be the responsibility of the City.

E.      Limitation of Actions. No civil action alleging a violation of this article shall be
        filed more than four years after the date of the violation.

F.      Discipline. Any appointed officer or employee who violates any provision of this
        article shall be subject to administrative discipline by his or her appointing authority.
        Such discipline shall be administered in accordance with procedures, prescribed by
        law or established by City policy, applicable to the officer or employee.

G.      Enforcement of Community Redevelopment Agency and Housing Authority
        Ethics Regulations

        1.     In the event that the Community Redevelopment Agency of the City of Los
               Angeles and/or the Housing Authority of the City of Los Angeles adopt
               governmental ethics regulations governing the conduct of their officers and
               employees and former officers and employees, violations of those
               regulations shall be subject to the civil enforcement proceedings set forth in
               Subsections B through E of this section and to the administrative
               enforcement provisions of Charter Section 706.

        2.     The City Ethics Commission is authorized to conduct administrative
               enforcement investigations and proceedings and to impose administrative
               penalties and orders for violations of governmental ethics regulations
               adopted by the Community Redevelopment Agency of the City of Los
               Angeles and/or the Housing Authority of the City of Los Angeles. Those
               proceedings shall be governed by the City Ethics Commission's enforcement
               regulations contained in Section 24.1.2 of the Los Angeles Administrative
               Code, as amended.

        3.     Any officer or employee of the Community Redevelopment Agency or the
               Housing Authority who violates any provision of the governmental ethics
               regulations adopted by those agencies shall be subject to administrative
               discipline by his or her appointing authority. That discipline shall be
               administered in accordance with procedures, prescribed by law or
               established by agency policy, applicable to the officers or employees.




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                                                              Los Angeles Governmental Ethics Ordinance



SEC. 49.5.20          Late Filing Penalties
                      Amended by Ordinance No. 170538, effective 7/13/95.

If any person files an original statement or report after any deadline imposed by this
article, he or she shall, in addition to any other penalties or remedies established by the
article, be liable to the City in the amount of twenty five dollars ($25) per day after the
deadline until the statement or report is filed. Liability need not be enforced by the City if
the Commission on an impartial basis determines that the late filing was not willful and
that enforcement of the liability will not further the purposes of the article, except that no
liability shall be waived if a statement or report is not filed within 30 days.


SEC. 49.5.21          Effect of Campaign Money Laundering Violation on Contracts
                      and Fee Waivers
                      Added by Ordinance No. 171142, effective 8/3/96.
                      Amended by Ordinance No. 172942, effective 1/21/00

A.      Applicability.

        1.     This section is applicable if the City Ethics Commission makes a finding that
               a person has laundered campaign funds in violation of City Charter Section
               470(k), and that finding is made after an administrative enforcement hearing
               pursuant to Charter Section 706 or as a result of a stipulation between the
               person committing the violation and the City Ethics Commission.

        2.     This section is applicable to the following contracts awarded or fees waived
               by the City Council or by any City agency, excluding the following proprietary
               City departments: Airports, City Employees Retirement System, Harbor,
               Library, Pensions, Recreation and Parks, and Water and Power:

               (a)    all contracts for personal services, and to all other contracts involving
                      a contract price in an amount of $1,000 or more;

               (b)    all discretionary fee waivers of $1,000 or more.

        3.     This section is applicable only to violations committed after the effective date
               of the ordinance adding this section.

B.      Competitively Bid Contracts.

        1.     Prior to awarding any contract which is required to be awarded to the lowest
               responsible bidder, the City Council or other City board, commission or
               officer charged with the duty to award the contract (the awarding authority)
               shall determine whether, the lowest monetary bidder has been found to have
               committed the violation as specified in Subsection A 1 above within the
               previous four years.



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                                                           Los Angeles Governmental Ethics Ordinance



        2.    The awarding authority shall not award the contract to the lowest monetary
              bidder, if, following a hearing as described in Subdivision 3 below, it finds
              that, as a result of the violation, the awarding authority believes that the
              bidder lacks integrity such that it is unfit to perform the work specified in the
              contract. The awarding authority shall make that finding unless there are
              specific facts brought to its attention, in writing, which indicate otherwise. On
              that basis, the awarding authority shall deem the bidder to be not
              responsible.

        3.    Prior to making a finding that a bidder is not responsible as set forth in
              Subdivision 2, the awarding authority shall notify the bidder of its intention to
              consider making such a finding. The awarding authority shall offer the
              bidder an opportunity to present evidence and argument that, despite the
              bidder having been found to have violated the City law prohibiting the
              laundering of campaign funds, the awarding authority should not have
              reason to question the bidder’s integrity and fitness to perform the contract.
              If the bidder desires to present such evidence and/or argument to the
              awarding authority, the awarding authority shall hold an informal hearing. At
              that hearing the bidder shall be allowed to make a presentation. After
              having considered the bidders presentation, and the presentations of any
              other interested parties, the awarding authority may make the finding set
              forth in Subdivision 2 if it is satisfied that such finding is merited.

C.      Contracts Awarded on a Basis Other Than Competitive Bidding. The City
        Council or other City board, commission or officer charged with the duty to award a
        contract shall not approve any contract on behalf of the City, other than a contract
        required to be awarded to the lowest responsible bidder, with any party, if the party
        has been found to have committed the violation as specified in Subsection A 1
        above within the previous four years.

D.      Fee Waivers. The City Council or other City board, commission or officer shall not
        grant any discretionary waiver of more than $1,000 of any City fee for any person if
        the person has been found to have committed the violation, as specified in
        Subsection A.1 above within the previous four years.

E.      Notice of Violations.

        1.    The City Ethics Commission shall provide a copy of every Commission
              enforcement decision relating to a violation as specified in Subsection A 1,
              together with a copy of any stipulation filed in the case, to the general
              manager or other head of each City agency to which this section applies.

        2.    A person who submits a bid or proposal in connection with any contract or a
              request for fee waiver with a City agency to which this section applies shall
              include with the bid, contract proposal or fee waiver documents a copy of the




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                                                              Los Angeles Governmental Ethics Ordinance



               Commission’s decision of violation as specified in Subsection A 1 made
               within the previous four years, together with a copy of any stipulation filed in
               connection therewith.

        3.     With respect to a decision on a contract or fee waiver considered by the City
               Council, the City Clerk shall submit a report which contains sufficient
               information to allow the body to comply with the requirements of those
               provisions.

        4.     With respect to a decision on a contract or fee waiver considered by a City
               board or commission, the agency staff shall submit a report which contains
               sufficient information to allow the body to comply with the requirements of
               those provisions.

F.      Time Period of Prohibitions and Notification. If the City Ethics Commission
        makes a finding that the contracting party has either

        (1)    accepted responsibility for the violation in the form of having entered into a
               stipulation with the City Ethics Commission in which the party admits the
               violation, or otherwise exhibits evidence of having accepted such
               responsibility, or

        (2)    mitigated the wrongdoing by taking prompt remedial or corrective action,
               then the City Ethics Commission may reduce the time period during which
               the above prohibitions and notification requirements would apply to a period
               of not less than one year. Any person who has been found by the City
               Ethics Commission to have violated Charter Section 470(k) may request
               such a finding from the Commission.

G.      Waiver of Provisions. The City Council by a two-thirds vote of its entire
        membership may waive any or all of the prohibitions contained in this section if the
        Council makes a written finding that an overriding public policy consideration
        justifies entering into the contract or waiving the fee despite the prohibition
        contained in this section. The finding shall set forth the nature of the overriding
        public policy consideration and the reason why that consideration justifies the
        waiver of the prohibition and shall be made only when the waiver is justified by a
        significant community or financial benefit to the City or if it is necessary to preserve
        the health, safety or welfare of the public.


SEC. 49.5.22          Authority of Enact
                      Renumbered by Ordinance No. 171142, effective 8/3/96.

This article is enacted pursuant to and under the authority of the Charter of this City,
California Government Code Sections 1125, et seq., California Government Code Section
81013 and California Constitution, Article XI, Section 5.



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                                                             Los Angeles Governmental Ethics Ordinance



SEC. 49.5.23         Applicability of Other Laws
                     Renumbered by Ordinance No. 171142, effective 8/3/96.

Nothing in this article shall exempt any person from complying with applicable provisions
of any other laws.


SEC. 49.5.24         Severability
                     Renumbered by Ordinance No. 171142, effective 8/3/96.

If any provision of this article, or its application to any person or circumstances, is held
invalid by any court, the remainder of this article or the application of such provision to
persons or circumstances other than those as to which it is held invalid, shall not be
affected thereby, to the extent such can be given effect, and to this extent the provisions
of this article are declared to be severable.
. . .
. . .




April 2008                               41 of 41
            Appendix 4

    Municipal Lobbying Ordinance
(Los Angeles Municipal Code § 48.05)
Municipal Lobbying Ordinance

♦♦♦Los Angeles Municipal Code §§ 48.01 et seq.

                                    Last Revised July 21, 2008




                                                Prepared by
                                City Ethics Commission



                                                CEC



                                       Los Angeles


                         200 North Spring Street, 24th Floor
                                    Los Angeles, CA 90012
                                           (213) 978-1960
                                       TTY (213) 978-2609
                                     http://ethics.lacity.org
                               Los Angeles Municipal Lobbying Ordinance
                                        TABLE OF CONTENTS


SEC. 48.01             Title and Findings. ..................................................................................... 1

SEC. 48.02             Definitions.................................................................................................. 1

  Activity expense .............................................................................................................. 2
  Agency ............................................................................................................................ 2
  At the behest ................................................................................................................... 2
  Attempting to influence .................................................................................................... 2
  City official ....................................................................................................................... 2
  Client ............................................................................................................................... 2
  Compensated services .................................................................................................... 3
  Controlled committee ...................................................................................................... 3
  Direct communication ...................................................................................................... 3
  Donation .......................................................................................................................... 3
  Elective city officer........................................................................................................... 3
  Elective officer ................................................................................................................. 3
  Fundraiser ....................................................................................................................... 3
  Fundraising activity.......................................................................................................... 3
  Host or sponsor ............................................................................................................... 3
  Lobbying activities ........................................................................................................... 3
  Lobbying entity ................................................................................................................ 4
  Lobbying firm................................................................................................................... 4
  Lobbyist ........................................................................................................................... 4
  Lobbyist employer ........................................................................................................... 5
  Major filer......................................................................................................................... 5
  Municipal legislation ........................................................................................................ 5
  Person ............................................................................................................................. 6
  Solicit............................................................................................................................... 6

SEC. 48.03             Exemptions................................................................................................ 6

SEC. 48.04             Prohibitions................................................................................................ 7

SEC. 48.05             Record Keeping Responsibilities ............................................................... 8

SEC. 48.06             Registration/Disclosure Forms................................................................... 8

SEC. 48.06.1          Online Filing of Lobbying Registration and Disclosure Statements............ 9

SEC. 48.07             Registration. .............................................................................................. 9

SEC. 48.08             Disclosure Reports .................................................................................. 12



                                                                     ii
SEC. 48.08.5   Copies of Solicitations.............................................................................. 19

SEC. 48.08.6   Lobbying Disclosure – Political Contributions .......................................... 19

SEC. 48.08.7   Lobbying Disclosure – Fundraising Activity.............................................. 20

Sec. 48.08.8   Lobbying Disclosure – Written Communications to Neighborhood
               Councils ................................................................................................... 21

SEC. 48.09     Compliance Measures and Enforcement.................................................. 22

SEC. 48.10     Ethics Commission Reports...................................................................... 24

SEC. 48.11     Severability. .............................................................................................. 25




                                                            iii
                                                                   Los Angeles Municipal Lobbying Ordinance



                               Municipal Lobbying Ordinance
                            Los Angeles Municipal Code Chapter IV, Article 8
                    Repealed and Re-added by Ordinance No. 169916, effective 8/10/94.



SEC. 48.01               Title and Findings
                         Amended by Ordinance No. 169916, effective 8/10/94.

A.      Title. This Article shall be known and may be cited as the Los Angeles Municipal
        Lobbying Ordinance.

B.      Findings. The following findings are adopted in conjunction with the enactment of
        this Article:

        1.       City Government functions to serve the needs of all citizens.

        2.       The citizens of the City of Los Angeles have a right to know the identity of
                 interests which attempt to influence decisions of City government, as well as
                 the means employed by those interests.

        3.       All persons engaged in compensated lobbying activities aimed at influencing
                 decisions by City government must, when so engaged, be subject to the
                 same regulations, restrictions and requirements, regardless of their
                 background, training or other professional qualifications or license.

        4.       Complete public disclosure of the full range of activities by and financing of
                 lobbyists and those who employ their services is essential to the
                 maintenance of citizen confidence in the integrity of local government.

        5.       It is in the public interest to ensure that lobbyists do not misrepresent facts,
                 their positions, or attempt to deceive officials through false communications,
                 do not place City officials under personal obligation to themselves or their
                 clients, and do not represent that they can control the actions of City
                 officials.

        6.       It is in the public interest to adopt these amendments to the City's
                 regulations of lobbyists to ensure adequate and effective disclosure of
                 information about efforts to lobby City government.

SEC. 48.02               Definitions
                         Amended by Ordinance No. 169916, effective 8/10/94.
                         Amended by Ordinance No. 172479, effective 4/10/99.
                         Amended by Ordinance No. 175432, effective 9/28/03.
                         Amended by Ordinance No. 178064, effective 1/15/07.
                         Amended by Ordinance No. 178356, effective 3/12/07.

The following terms used in this Article shall have the meanings set forth below. Other
terms used in this Article shall have the meanings set forth in the California Political


Last Revised July 21, 2008                                                                    Page 1 of 25
                                                             Los Angeles Municipal Lobbying Ordinance



Reform Act of 1974, as amended, and in the regulations of the California Fair Political
Practices Commission, as amended, if defined therein.

"Activity expense" means any payment, including any gift, made to or directly benefiting
any City official or member of his or her immediate family, made by a lobbyist, lobbying
firm, or lobbyist employer.

"Agency" means the City of Los Angeles or any department, bureau, office, board,
commission, other agency of the City, or any other government agency, required to adopt
a conflict of interest code subject to City Council approval, and includes the City's
Community Redevelopment Agency and the Los Angeles City Housing Authority.

"At the behest" means under the control of, at the direction of, in cooperation,
consultation, coordination, or concert with, at the request or suggestion of, or with the
express prior consent of any elective City officer or candidate for elective City office. A
donation to a religious, charitable, or other nonprofit organization is not made at the
behest of an elective City officer or candidate if the donation is solicited through a
newspaper publication, through radio, television, or other mass media, or through a
suggestion made to the entire audience at a public gathering. A donation to a religious,
charitable, or other nonprofit organization is not made at the behest of an elective City
officer or candidate solely because the name of the officer or candidate is listed with other
names on written materials used to request donations or the officer or candidate makes a
speech to the entire audience or is honored and given an award at an event sponsored by
the organization.

"Attempting to influence" means promoting, supporting, opposing or seeking to modify
or delay any action on municipal legislation by any means, including but not limited to
providing or using persuasion, information, statistics, analyses or studies. A person
attempts to influence municipal legislation when he or she engages in lobbying activities
for the purpose of influencing a decision.

"City official" means any elective or appointed City officer, member, employee or
consultant (who qualifies as a public official within the meaning of the Political Reform Act)
of any agency, who, as part of his or her official duties, participates in the consideration of
any municipal legislation other than in a purely clerical, secretarial or ministerial capacity.

"Client" means both

        (1)      the person who compensates a lobbyist or lobbying firm for the purpose of
                 attempting to influence municipal legislation and

        (2)      the person on whose behalf a lobbyist or lobbying firm attempts to influence
                 such municipal legislation, even if the lobbyist or lobbying firm is
                 compensated by another person for such representation.

However, if a lobbyist or lobbying firm represents a membership organization and
individual members of that organization, an individual member is not a client solely


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                                                               Los Angeles Municipal Lobbying Ordinance



because the member is individually represented by the lobbyist or lobbying firm unless the
member makes a payment for such representation in addition to usual membership fees.

"Compensated services" means services for which compensation was paid during a
reporting period or for which the lobbyist or lobbying firm became entitled to compensation
during that period.

"Controlled committee" means any committee controlled by an elective City officer or
candidate for any elective City office, including any campaign, officeholder, legal defense
fund, or ballot measure committee.

"Direct communication" means appearing as a witness before, talking to (either by
telephone or in person), corresponding with, or answering questions or inquiries from, any
City official or employee, either personally or through an agent who acts under one‘s direct
supervision, control or direction.

"Donation" means a payment for which full and adequate consideration is not received.

“Elective city officer” means the Mayor, City Attorney, Controller and Member of the City
Council.

“Elective officer” means any person who is a City Council Member, City Attorney,
Controller or Mayor, whether appointed or elected.

“Fundraiser” means an individual who receives compensation to engage in fundraising
activity as defined in this section.

"Fundraising activity" means soliciting a contribution or hosting or sponsoring a
fundraising event or hiring a fundraiser or contractor to conduct any event designed
primarily for political fundraising at which contributions for an elective City officer,
candidate for elective City office, or any of his or her controlled committees are solicited,
delivered or made.

"Host or sponsor" means to provide the use of a home or business to hold a political
fundraising event without charging market value for the use of that location; to ask more
than 25 persons to attend the event; to pay for at least a majority of the costs of the event;
or to provide the candidate, campaign, committee and/or fundraiser more than 25 names
to be used for invitations to the event.

"Lobbying activities" includes the following and similar compensated conduct when that
conduct is related to a direct communication to influence any municipal legislation:

        (1)      engaging in, either personally or through an agent, written or oral direct
                 communication with a City official;
        (2)      drafting ordinances, resolutions or regulations;




Last Revised July 21, 2008                                                                Page 3 of 25
                                                               Los Angeles Municipal Lobbying Ordinance



        (3)      providing advice or recommending strategy to a client or others;

        (4)      research, investigation and information gathering;

        (5)      seeking to influence the position of a third party on municipal legislation or
                 an issue related to municipal legislation by any means, including but not
                 limited to engaging in community, public or press relations activities; and

        (6)      attending or monitoring City meetings, hearings or other events.

“Lobbying entity” means a lobbyist, lobbying firm or lobbyist employer, as defined in this
article.

"Lobbying firm" means any entity, including an individual lobbyist, which receives or
becomes entitled to receive $1,000 or more in monetary or in-kind compensation for
engaging in lobbying activities (either personally or through its agents) during any
consecutive three-month period, for the purpose of attempting to influence municipal
legislation on behalf of any other person, provided any partner, owner, shareholder, officer
or employee of the entity qualifies as a lobbyist. Compensation does not include
reimbursement of or payment for reasonable travel expenses. An entity receives
compensation within the meaning of this definition whether or not the compensation is
received solely for activities regulated by this article or is received for other activities as
well; however, only that portion of compensation received for the lobbying activities shall
count toward the qualification threshold. An entity "becomes entitled to receive
compensation" when the entity agrees to provide services regulated by this Article, or
performs those services, whether or not payment is contingent on the accomplishment of
the client's purposes.

"Lobbyist" means any individual who is compensated to spend 30 or more hours in any
consecutive three-month period engaged in lobbying activities which include at least one
direct communication with a City official or employee, conducted either personally or
through agents, for the purpose of attempting to influence municipal legislation on behalf
of any other person.

Compensation does not include reimbursement of or payment for reasonable travel
expenses. A person receives compensation within the meaning of this definition whether
or not the compensation is received solely for activities regulated by this Article or is
received for both lobbying activities and other activities as well. However, only the
compensation for the lobbying activities shall be calculated to determine whether an
individual qualifies as a lobbyist. An individual "becomes entitled to receive
compensation" when the individual or the entity in which the individual is an employee,
partner, owner, shareholder or officer, agrees to provide services regulated by this Article,
or performs those services, regardless of whether payment is contingent on the
accomplishment of the client's purposes. A lobbyist includes a person who owns an
investment in a business entity if that person attempts to influence municipal legislation on




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behalf of the business entity and if the person acquires the investment as compensation
for his or her lobbying services or in contemplation of performing those services.

“Lobbyist employer" means an entity, other than a lobbying firm, that employs a lobbyist
in-house to lobby on its behalf.

"Major filer" means any person who makes payments or incurs expenditures totaling
$5,000 or more during any calendar quarter for public relations, media relations,
advertising, public outreach, research, investigation, reports, analyses, studies, or similar
activities, for the purpose of attempting to influence action on any proposed or pending
matter of municipal legislation, if these payments or expenditures are not required to be
reported on a lobbyist or lobbying firm quarterly report. A "major filer" does not include a
lobbyist, lobbyist employer, or lobbying firm. Expenditures and payments for regularly
published newsletters or other routine communications between an organization and its
members shall not be counted for the purpose of this definition.

"Municipal legislation" means any legislative or administrative matter proposed or
pending before any agency (as defined in this Article), including but not limited to those
involving the granting, denial, revocation, restriction or modification of a license, permit or
entitlement for use (including all land use permits) if the Mayor, the City Council, any of its
committees, any agency board, commission, committee, or general manager, or any
agency officer or employee charged by law with holding a hearing and making a decision,
is charged by law with making a final decision on the matter. However, "municipal
legislation" does not include any of the following:

        (1)      A request for advice or for an interpretation of laws, regulations, City
                 approvals or policies, or a direct response to an enforcement proceeding
                 with the City Ethics Commission.

        (2)      Any ministerial action. An action is ministerial if it does not require the City
                 official or employees involved to exercise discretion concerning any outcome
                 or course of action.

        (3)      Any action relating to the establishment, amendment, administration,
                 implementation or interpretation of a collective bargaining agreement or
                 memorandum of understanding between an agency and a recognized
                 employee organization, or a proceeding before the Civil Service Commission
                 or the Employee Relations Board. Further, it does not include management
                 decisions as to the working conditions of represented employees that clearly
                 relate to the terms of such collective bargaining agreement or memorandum
                 of understanding. Nevertheless, “municipal legislation” does include any
                 action relating to collective bargaining taken by the City Council, any of its
                 committees or members (including the staffs of such members), or by the
                 Mayor or his or her office.




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        (4)      Preparation or compilation of any radius map, vicinity map, plot plan, site
                 plan, property owners or tenants list, abutting property owners list,
                 photographs of property, proof of ownership or copy of lease, or neighbor
                 signatures required to be submitted to the City Planning Department.

"Person" means any individual, business entity, trust corporation association, committee,
or any other organization or group of persons acting in concert.

"Solicit" means to ask, personally or through an agent, that another person make a
contribution to an elective City officer or candidate for City office, or to his or her controlled
committee, including allowing one’s signature to be used on a written request for funds.
For purposes of this article, a lobbying entity solicits a contribution only when the lobbying
entity does so

        (i)      at the behest of the elective City officer or candidate for elective City office,
                 or his or her campaign treasurer, campaign manager, or member of his or
                 her fundraising committee, or

        (ii)     if the lobbying entity has informed the candidate or officer that the person is
                 soliciting the contributions.

A person does not solicit, however, by making a request for funds publicly to at least a
majority of persons who attend any public gathering, or by making a request that appears
published in a newspaper, on radio or television.


SEC. 48.03               Exemptions
                         Amended by Ordinance No. 169916, effective 8/10/94.

The following persons are exempt from the requirements of this Article:

A.      Any public official acting in his or her official capacity, and any government
        employee acting within the scope of his or her employment.

B.      A newspaper or other regularly published periodical, radio or television station or
        network, including any individual who owns, publishes or is employed by such
        newspaper, periodical or station or network, when, in the ordinary course of its
        business, it publishes or broadcasts news, editorials or other comments, or paid
        advertising, which directly or indirectly attempts to influence action on municipal
        legislation. This exemption does not apply to any other action by any such
        newspaper, periodical, station or network, or by any such person, to attempt to
        influence municipal legislation, if such activity otherwise regulated by this Article.

C.      A person acting without any compensation or consideration other than
        reimbursement or payment of reasonable travel expenses.




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D.      Any person whose only activity is submitting a bid on a competitively bid contract,
        submitting a written response to or participating in an oral interview for a request for
        proposals or qualifications, or negotiating the terms of a written agreement with any
        City agency if selected pursuant to that bid or request for proposals or
        qualifications. Except with regard to persons covered by subsections E and F, this
        exemption shall not apply to any person who attempts to influence the action of the
        Mayor or Mayor's staff, any member of the City Council or their staffs, or any board
        or commission member with regard to any such contract.

E.      Any organization exempt from federal taxation pursuant to Section 501(c)(3) of the
        Internal Revenue Code, which receives funding from any federal, state or local
        government agency for the purpose of representing the interests of indigent
        persons and whose primary purpose is to provide direct services to those persons,
         if the individual or individuals represented by the organization before any City
        agency provide no payment to the organization for that representation. This
        exemption shall not apply to direct contracts with a City official in other than a
        publicly noticed meeting, for the purpose of attempting to influence a City decision
        with regard to any City funding which the organization is seeking.

F.      Any person employed by an organization described in Subsection E with respect to
        his or her activities as an employee of the organization.


SEC. 48.04               Prohibitions
                         Amended by Ordinance No. 169916, effective 8/10/94.

No lobbyist or lobbying firm subject to the requirements of this Article shall:

A.      Do any act with the purpose and intent of placing any City official under personal
        obligation to the lobbyist, the lobbying firm, or to the lobbyist's or firm's employer or
        client.

B.      Fraudulently deceive or attempt to deceive any City official with regard to any
        material fact pertinent to any pending or proposed municipal legislation.

C.      Cause or influence the introduction of any municipal legislation for the purpose of
        thereafter being employed or retained to secure its passage or defeat.

D.      Cause any communication to be sent to any City official in the name of any
        nonexistent person or in the name of any existing person without the consent of
        such person.

E.      Make or arrange for any payment to a City official, or act as an agent or
        intermediary in making any such payment by any other person, if the arrangement
        or the payment would violate any provision of the City's Governmental Ethics
        Ordinance (Los Angeles Municipal Code Section 49.5.1, et seq.)



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SEC. 48.05               Record Keeping Responsibilities
                         Amended by Ordinance No. 175432, effective 9/28/03.

A.      Lobbying entities and major filers shall prepare and retain detailed records
        (including all books, papers and other documents) needed to comply with the
        requirements of this Article. Treasurers and fundraisers for elective City
        officeholders and City candidates, or for any elective City officer’s or City
        candidate’s controlled committees shall prepare and retain detailed contribution
        activity records for any contributions received as a result of fundraising activity
        engaged in by a lobbyist, lobbying firm or lobbyist employer, as defined by this
        article. These records shall be retained for not less than four years.

B.      If a lobbying entity engages in fundraising activities as defined in Section 48.02 of
        this Code at the behest of a candidate or officeholder running for elective City
        office, the lobbying entity shall maintain records detailing any contributions that they
        know or have reason to know resulted from the fundraising activities.

C.      If an officeholder or a candidate running for elective City office contracts with a
        lobbying entity to engage in fundraising activity as described in Section 48.02 of
        this Code, the committee treasurer and fundraiser shall maintain records detailing
        any contributions that they know or have reason to know resulted from the
        fundraising activities. The treasurer and fundraiser shall make the records
        available to the lobbying entity upon request of the lobbying entity.

D.      If a lobbying entity delivers or sends written communications to a certified
        neighborhood council in an attempt to influence municipal legislation as described
        in Section 48.08.8 of this Article, the lobbying entity shall prepare and maintain
        detailed records of these written communications for not less than four years.


SEC. 48.06               Registration/Disclosure Forms
                         Amended by Ordinance No. 177105, effective 12/18/05.

All lobbyist and lobbying firm registrations, and all other statements and reports required
by this Article shall be verified under penalty of perjury and shall be filed on forms
provided by the City Ethics Commission and as otherwise required by this Article in
section 48.06.1.
Any paper report or statement properly addressed and bearing the correct postage shall
be considered filed on the date of the postmark or on the date of delivery to the City Ethics
Commission, whichever is earlier.




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SEC. 48.06.1             Online Filing of Lobbying Registration and Disclosure
                         Statements
                         Added by Ordinance No. 177105, effective 12/18/05.

A.      Any person required by this Article to file registration and quarterly report
        statements with the City Ethics Commission shall file those statements online,
        using the Commission's Lobbyist Electronic Filing System (LEFS). Once any
        person is required to file registration and quarterly report statements online, that
        person shall continue to file statements online until the person's status as a
        lobbyist, lobbying firm or lobbyist employer has officially terminated. Any person
        who qualifies as a "Major Filer" as defined in section 48.02 of this Article is not
        subject to this online filing requirement.

B.      A person required by subsection A to file statements online also shall file a paper
        copy of each statement required by this Article. Each paper copy of a required
        statement shall contain an original signature. Paper copies of statements shall
        continue to be filed until the person's status as a lobbyist, lobbying firm or lobbyist
        employer has officially terminated. Until otherwise permitted under City law, the
        signed paper copy shall continue to be the original statement for audit and other
        legal purposes.

C.      In addition to any late filing penalties that may be imposed for a late filing of a paper
        copy pursuant to this Article, any person who fails to comply with the online filing
        requirement of this section will, in addition, be subject to an additional late filing
        penalty of $25 per day after the deadline for the filing of the online copy.

D.      The information contained on a statement filed online shall be the same as that
        contained on the paper copy of the same statement that is filed with the
        Commission.

E.      The Lobbyist Electronic Filing System (LEFS) is an internet-based, interactive
        computer program developed by the Los Angeles City Ethics Commission and
        available on its website and allows persons to file, view and search statements and
        reports filed with the Commission online.


SEC. 48.07               Registration
                         Amended by Ordinance No. 172479, effective 4/10/99.
                         Amended by Ordinance No. 175028, effective 2/5/03.

A.      Requirement. An individual who qualifies as a lobbyist shall register with the City
        Ethics Commission within 10 days after the end of the calendar month in which the
        individual qualifies as a lobbyist. A person, including an individual lobbyist, shall
        register with the City Ethics Commission as a lobbying firm within 10 days after the
        end of the calendar month in which a partner, owner, shareholder, officer or
        employee qualifies as a lobbyist. If a person is not registered as a lobbyist or
        lobbying firm, but is performing acts which would require that person to so register,


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        that person may continue to act as a lobbyist or lobbying firm so long as the person
        registers with the City Ethics Commission within 10 days after the person knew or
        should have known of the obligation to register. A lobbyist or lobbying firm shall
        register each client on whose behalf or from which the lobbyist or lobbying firm
        receives or becomes entitled to receive $250 or more in a calendar quarter for
        engaging in lobbying activities related to attempting to influence municipal
        legislation.

B.      Duration of Status. A person who registers as a lobbyist or lobbying firm shall
        retain that status through December 31 of that year unless and until that person
        terminates the status as set forth below.

C.      Registration Fees. Every lobbyist shall pay an annual registration fee of $450 plus
        $75 for each client on whose behalf or from which the lobbyist receives or becomes
        entitled to receive $250 or more in a calendar quarter. Persons who initially
        register during the last quarter of a calendar year (October through December)
        shall pay prorated registration fees of $337 for each lobbyist plus $56 for each
        client.

D.      Contents of Registration Statements — Lobbyists. Registration statements of
        lobbyists shall contain the following:

        1.       The lobbyist's name, business address, and business telephone number.

        2.       The lobbying firm, if any, of which the lobbyist is an employee, partner,
                 officer or owner.

        3.       If the lobbyist is not an employee, partner, officer or owner of a lobbying firm,
                 the name, address and telephone number of the lobbyist's employer,
                 together with a letter from the employer authorizing the lobbyist to lobby on
                 behalf of the employer.

        4.       Each City agency that the lobbyist has the authority to attempt to influence
                 on behalf of any client or employer.


        5.       A statement that the lobbyist has reviewed and understands the
                 requirements of this Article.

        6.       Any other information required by regulation of the City Ethics Commission,
                 consistent with the purposes and provisions of this Article.

E.      Contents of Registration Statements — Lobbying Firms
        Registration statements of lobbying firms (including individual contract
        lobbyists) shall contain the following:




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        1.       The name, address and telephone number of the firm.

        2.       The name of each lobbyist who is a partner, owner, shareholder, officer or
                 employee of the firm.
        3.       The registration statement prepared by each lobbyist so identified, appended
                 to the statement.

        4.       For each client on whose behalf or from which the firm received or became
                 entitled to receive $250 in compensation during the calendar quarter for
                 engaging in lobbying activities related to attempting to influence municipal
                 legislation within the meaning of this Article:

                 (a)     The client's name, business or residence address and business or
                         residence telephone number.

                 (b)     The period during which the representation will occur.

                 (c)     The item or items of municipal legislation for which the firm was
                         retained to represent the client, or, if no specific items of municipal
                         legislation for which the firm was retained to represent the client can
                         be identified, a description of the types of municipal legislation for
                         which the firm was retained to represent the client.

                 (d)     Each City agency that the lobbying firm has the authority to attempt to
                         influence on behalf of the client.

                 (e)     A letter from the client authorizing the firm to represent the client.

                 (f)     In the case of a lobbyist who is an individual contract lobbyist, a
                         statement that he or she has reviewed and understands the
                         requirements of this Article.

                 (g)     The name of the person or persons responsible for preparing the
                         statement.

                 (h)     Any other information required by regulation of the City Ethics
                         Commission, consistent with the purposes and provisions of this
                         Article.

F.      Filing Registration Statements. Every lobbying firm shall file its registration
        statement with the City Ethics Commission and shall attach the registration
        statements of all lobbyists who are partners, owners, shareholders, officers or
        employees of the firm. Every lobbyist who is not a partner, owner, shareholder,
        officer or employee of a lobbying firm shall file his or her registration statement with
        the City Ethics Commission.




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G.      Amendments to Registrations. Lobbyists and lobbying firms shall file
        amendments to their registration statements within 10 days of any change in
        information required to be set forth on the registration statement.

H.      Termination. Any person registered under this Article shall file a Registration
        Termination form with the City Ethics Commission within 20 days after ceasing all
        activity governed by this Article.

I.      Education Requirement. Every individual who is required to register as a lobbyist
        shall attend a City lobbying information session conducted by the City Ethics
        Commission no less than once every two calendar years, according to the following
        schedule:

        (1)      An individual who has not registered as a lobbyist in the immediately
                 preceding two calendar years shall attend a City lobbying information
                 session within six months of his or her registration date as a lobbyist.

        (2)      A registered lobbyist who did not attend a City lobbying information session
                 during the previous calendar year shall attend a City lobbying session by the
                 end of the current calendar year.

        (3)      A registered lobbyist who attends a City lobbying information session during
                 the current calendar year is not required to attend a City lobbying information
                 session during the following calendar year.


SEC. 48.08               Disclosure Reports
                         Amended and renumbered by Ordinance No. 175432, effective 9/28/03.

A.      Reporting Requirement. Every lobbyist, lobbying firm, lobbyist employer and
        major filer shall file the quarterly disclosure reports required by this section on or
        before the last day of the month following each calendar quarter. A report properly
        addressed and bearing the correct postage shall be considered filed on the date of
        the postmark or on the date of delivery to the City Ethics Commission, whichever is
        earlier.

        1.       All lobbyists and lobbying firms shall file quarterly reports for every calendar
                 quarter during which they retain that status. An individual who qualifies both
                 as a lobbyist and lobbying firm shall file only a lobbying firm quarterly report.
                 Lobbyist employers shall file quarterly reports for every calendar quarter
                 during which any individual employed by that employer retains the status as
                 lobbyist. Information required to be disclosed concerning compensation
                 received or expenditures made for lobbying shall be disclosed either by the
                 lobbyist or by his or her lobbying firm or employer.




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        2.       Major filers shall file quarterly reports for every calendar quarter during which
                 they made qualifying payments or incurred qualifying expenditures totaling
                 $5,000 or more.

        3.       Quarterly reports shall disclose all required information for the calendar
                 quarter immediately prior to the month in which the report is required to be
                 filed. The reports shall be filed in duplicate (one original and one copy).

B.      Quarterly Reports by Lobbyists — Contents. Quarterly reports by lobbyists
        shall contain the following information:

        1.       The lobbyist's name, business address and business telephone number.

        2.       The lobbying firm, if any, of which the lobbyist is a partner, owner,
                 shareholder, officer or employee.

        3.       If the lobbyist is not a partner, officer or owner of a lobbying firm, the name,
                 address and telephone number of the lobbyist's employer.

        4.       The date, amount and description of each activity expense of $25 or more
                 made by the lobbyist during the reporting period, the name and title of the
                 City official benefiting from the expense, the name and address of the
                 payee, and the client, if any, on whose behalf the expense was made. An
                 activity expense shall be considered to be made on behalf of a client if the
                 client requested or authorized the expense or if the expense was made in
                 connection with an event at which the lobbyist attempted to influence the
                 official on behalf of the client.

        5.       The total amount of activity expenses made by the lobbyist during the
                 reporting period, whether or not itemized.

        6.       The name of any elective City officer, candidate for elective City office, or
                 any controlled committee of the officer or candidate to which the lobbyist
                 made contributions of $100 or more, or which were delivered by the lobbyist,
                 or in connection with which the lobbyist acted as an intermediary during the
                 reporting period, and the date and amount of the contribution.

        7.       The name of any elective City officer, candidate for elective City office, or
                 any City controlled committee of the officer or candidate for which the
                 lobbyist engaged in any fundraising activity during the reporting period, the
                 date(s) of the activity and the amount of funds the lobbyist knows or has
                 reason to know were raised as a result of the activity.

        8.       The date and amount of one or more contributions aggregating more
                 than $1,000 made by the lobbyist at the behest of an elective City officer or
                 candidate for elective City office during the reporting period to any and all



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                 controlled committees of any other elective City officer or candidate for
                 elective City office, the name and address of the payee, the name of the
                 elective City officer or candidate for elective City office who made the behest
                 and the date of the behest.
        9.       The date, amount and description of one or more donations aggregating
                 $1,000 or more made by the lobbyist at the behest of an elective City officer
                 or candidate for elective City office during the reporting period to any
                 religious, charitable or other nonprofit organization, the name and address of
                 the payee, the name of the elective City officer or candidate for elective City
                 office who made the behest and the date of the behest.

        10.      If, during the quarterly reporting period, the lobbyist provided compensated
                 services, including consulting services, to the campaign of any candidate for
                 elective City office, or to a campaign for or against any City ballot measure,
                 the name of the candidate, the elective City office sought by the candidate,
                 the ballot number or letter of the ballot measure, the date of the election, the
                 amount of compensation earned for the compensated services, and a
                 description of the nature of the services provided. Such information shall be
                 reported if the lobbyist personally provided the services, or if the services
                 were provided by a business entity in which the lobbyist owns at least a 10%
                 investment, whether the compensation was provided directly to the lobbyist
                 or to such business entity.

        11.      If, during the quarterly reporting period, the lobbyist provided compensated
                 services under contract with the City or with any City agency, including
                 consulting services, the amount of compensation received, the agency for
                 which the services were provided, a description or other identification of the
                 contract and the nature of the services provided. Such information shall be
                 reported if the lobbyist personally provided the services, or if the services
                 were provided by a business entity in which the lobbyist owns at least a 10%
                 investment, whether the compensation was provided directly to the lobbyist
                 or to such business entity.

        12.      Each City agency that the lobbyist attempted to influence.

        13.      Any other information required by regulation of the City Ethics Commission,
                 consistent with the purposes and provisions of this Article.

C.      Quarterly Reports by Lobbying Firms — Contents. Quarterly reports by
        lobbying firms, including individual contract lobbyists, shall contain the following
        information:

        1.       The name, address and telephone number of the firm.




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        2.       The name of each lobbyist who is a partner, owner, shareholder, officer or
                 employee of the firm and whose quarterly report is required to be attached to
                 the report.

        3.       The original quarterly report of each lobbyist identified pursuant to
                 subdivision 2 above, attached as an exhibit to the report of the lobbying firm.
        4.       The name, address and telephone number of each client that is required to
                 be registered and was represented by the firm during the reporting period; a
                 description of each item of municipal legislation for which the firm or its
                 lobbyists represented the client during the reporting period; the total amount
                 of payments received by the firm from each client (including all fees,
                 reimbursements for expenses and other payments) during the reporting
                 period for such representation.

        5.       The total payments received from clients required to be registered by the
                 firm during the reporting period in connection with the firm's representation of
                 clients on municipal legislation.

        6.       The date, amount and description of each activity expense of $25 or more
                 made by the lobbying firm during the reporting period, the name and title of
                 the City official benefiting from the expense, the name and address of the
                 payee, and the client, if any, on whose behalf the expense was made. An
                 activity expense shall be considered to be made on behalf of a client if the
                 client requested or authorized the expense or if the expense was made in
                 connection with an event at which the lobbying firm attempted to influence
                 the official on behalf of the client.

        7.       The total amount of activity expenses made by the lobbying firm during the
                 reporting period, whether or not itemized.

        8.       The total amount of expenses incurred in connection with attempts by the
                 firm to influence municipal legislation. These expenses shall include:

                 (a)     total payments to lobbyists employed by the firm;

                 (b)     total payments to employees of the firm, other than lobbyists, who
                         engaged in attempts to influence municipal legislation during the
                         reporting period; and

                 (c)     all expenses attributable to attempts to influence municipal legislation,
                         other than overhead, and other expenses that would not be incurred
                         but for the attempts to influence. Each such expense of $5,000 or
                         more shall be itemized and described.

        9.       The name of any elective City officer, candidate for elective City office, or
                 any controlled committee of the officer or candidate to which the lobbying



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                 firm made contributions of $100 or more, or which were delivered by the
                 lobbying firm, or in connection with which the lobbying firm acted as an
                 intermediary during the reporting period, and the date and amount of the
                 contribution.

        10.      The name of any elective City officer, candidate for elective City office, or
                 any City controlled committee of the officer or candidate for which the
                 lobbying firm engaged in any fundraising activity during the reporting period,
                 the date(s) of the activity and the amount of funds the lobbying firm knows or
                 has reason to know were raised as a result of the activity.

        11.      The date and amount of one or more contributions aggregating more than
                 $1,000 made by the lobbying firm at the behest of an elective City officer or
                 candidate for elective City office during the reporting period to any and all
                 controlled committees of any other elective City officer or candidate for
                 elective City office, the name and address of the payee, the name of the
                 elective City officer or candidate for elective City office who made the behest
                 and the date of the behest.

        12.      The date, amount and description of one or more donations aggregating
                 $1,000 or more made by the lobbying firm at the behest of an elective City
                 officer or candidate for elective City office during the reporting period to any
                 religious, charitable or other nonprofit organization, the name and address of
                 the payee, the name of the elective City officer or candidate for elective City
                 office who made the behest and the date of the behest.

        13.      If, during the quarterly reporting period, the lobbying firm provided
                 compensated services, including consulting services, to the campaign of any
                 candidate for elective City office, or to a campaign for or against any City
                 ballot measure, the name of the candidate, the elective City office sought by
                 the candidate, the ballot number or letter of the ballot measure, the date of
                 the election, the amount of compensation earned for the compensated
                 services and a description of the services provided.

        14.      If, during the quarterly reporting period, the lobbying firm provided
                 compensated services under contract with the City or with any agency,
                 including consulting services, the amount of compensation received, the
                 agency for which the services were provided, a description or other
                 identification of the contract and the nature of the services provided. For an
                 individual contract lobbyist who qualifies as a lobbying firm, such information
                 shall be reported if the lobbyist personally provided the services, or if the
                 services were provided by a business entity in which the lobbyist owns at
                 least a 10% investment, regardless of whether the compensation was
                 provided directly to the lobbyist or to such business entity.




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        15.      For an individual contract lobbyist who qualifies as a lobbying firm, each City
                 agency that the lobbyist attempted to influence.

        16.      The name, address and telephone number of the person responsible for
                 preparing the report.

        17.      Any other information required by regulation of the City Ethics Commission,
                 consistent with the purposes and provisions of this Article.

D.      Quarterly Reports by Lobbyist Employers — Contents. Quarterly reports by
        lobbyist employers shall contain the following information.

        1.       The name, address and telephone number of the entity filing the report.

        2.       The name of each lobbyist who is employed by the entity and whose
                 quarterly report is required to be attached as an exhibit to the report.

        3.       The original quarterly report of each lobbyist identified pursuant to
                 Subdivision 2 above, attached as an exhibit to the report of the lobbyist
                 employer.

        4.       Total payments during the reporting period to lobbyists employed by the
                 entity. Such payments shall include solely payments for compensation and
                 reimbursement of expenses relating to the lobbyists' attempts to influence
                 municipal legislation.

        5.       Total payments to employees of the entity, other than lobbyists, who
                 engaged in attempts to influence municipal legislation during the reporting
                 period. Such payments shall include payments for compensation and
                 reimbursement of expenses relating to such persons' attempts to influence
                 municipal legislation.

        6.       Total payments for expenses incurred in connection with attempts by the
                 entity during the reporting period to influence municipal legislation. These
                 expenses shall include all expenses attributable to attempts to influence
                 municipal legislation, other than overhead, and other expenses that would
                 not be incurred but for the attempts to influence. Each such expense of
                 $5,000 or more shall be itemized and described.

        7.       A description of each item of municipal legislation which the entity attempted
                 to influence during the reporting period.

        8.       The date, amount and description of each activity expense of $25 or more
                 made by the lobbyist employer during the reporting period, the name and
                 title of the City official benefiting from the expense, and the name and
                 address of the payee.



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                                                                Los Angeles Municipal Lobbying Ordinance



        9.       The total amount of activity expenses made by the lobbyist employer during
                 the reporting period, whether or not itemized.

        10.      The name of any elective City officer, candidate for elective City office, or
                 any controlled committee of the officer or candidate to which the lobbyist
                 employer made contributions of $100 or more, or which were delivered by
                 the lobbyist employer, or in connection with which the lobbyist employer
                 acted as an intermediary during the reporting period, and the date and
                 amount of the contribution.

        11.      The name of any elective City officer, candidate for elective City office, or
                 any City controlled committee of the officer or candidate for which the
                 lobbyist employer engaged in any fundraising activity during the reporting
                 period, the date(s) of the activity and the amount of funds the lobbyist
                 employer knows or has reason to know were raised as a result of the
                 activity.

        12.      The date and amount of one or more contributions aggregating more than
                 $1,000 made by the lobbyist employer at the behest of an elective City
                 officer or candidate for elective City office during the reporting period to any
                 and all controlled committees of any other elective City officer or candidate
                 for elective City office, the name and address of the payee, the name of the
                 elective City officer or candidate for elective City office who made the behest
                 and the date of the behest.

        13.      The date, amount and description of one or more donations aggregating
                 $1,000 or more made by the lobbyist employer at the behest of an elective
                 City officer or candidate for elective City office during the reporting period to
                 any religious, charitable or other nonprofit organization, the name and
                 address of the payee, the name of the elective City officer or candidate for
                 elective City office who made the behest and the date of the behest.

        14.      The name, address and telephone number of the person responsible for
                 preparing the report.

        15.      Any other information required by regulation of the City Ethics Commission,
                 consistent with the purposes and provisions of this Article.

E.      Quarterly Reports by Major Filers — Contents. Quarterly reports by major filers
        shall contain the following information:

        1.       The name, address and telephone number of the person filing the report.

        2.       A description of each item of municipal legislation which the entity attempted
                 to influence during the reporting period.




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                                                                   Los Angeles Municipal Lobbying Ordinance



        3.       The total payments made during the reporting period for the purpose of
                 attempting to influence action on each proposed or pending matter of
                 municipal legislation.

        4.       The name, address and telephone number of the person responsible for
                 preparing the report.
        5.       Any other information required by regulation of the City Ethics Commission,
                 consistent with the purposes and provision of this Article.


SEC. 48.08.5             Copies of Solicitations
                         Added by Ordinance No. 175432, effective 9/28/03.

Each lobbying entity that produces, pays for, mails or distributes more than 50
substantially similar copies of a written political fundraising solicitation for any controlled
committee of an elective City officer or candidate relating to seeking or holding City
elective office or supporting or opposing a City ballot measure shall send a copy of the
solicitation to the City Ethics Commission for public access, at the time the solicitation is
sent or otherwise distributed, and shall report on its next quarterly report the date(s) on
which it is mailed or distributed and a general description of the content of the solicitation,
the number of pieces mailed or distributed, and name of the elective City officer, or
candidate or City ballot measure committee for which the funds were solicited.


SEC. 48.08.6             Lobbying Disclosure — Political Contributions
                         Added by Ordinance No. 175432, effective 9/28/03.

A.      Each lobbying entity, which makes one or more contributions to an elective City
        officer and/or to any or all of his or her controlled committees, shall file a notice with
        the City Ethics Commission each time the making of a contribution results in the
        lobbying entity having made contributions aggregating more than $7,000 to the
        officer and/or his or her controlled committees within the past 12 months. The
        notice shall be filed on a form prescribed by the Commission within one business
        day after making a contribution that triggers the filing requirement. The notice shall
        contain the following information:

        1.       The name, address and telephone number of the filer, the name of the
                 elective City officer, and/or any or all of his or her controlled committees, to
                 which the lobbying entity made contributions aggregating more than $7,000
                 during the past twelve months, and the date and amount of each
                 contribution.

        2.       For purposes of this section, a “controlled committee” does not include any
                 committee controlled by an elective City officer that is

                 (a)     formed to support or oppose a ballot measure or



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                                                                        Los Angeles Municipal Lobbying Ordinance



                 (b)     formed to support the election of that officer to other than elective City
                         office.

B.      The original notice shall be filed with the City Ethics Commission, and copies shall
        be filed with the City Clerk and the elective City officer involved. Each notice may
        only include information relative to one elective officer.

C.      The form shall be considered filed on the date of the postmark or on the date of
        delivery to the City Ethics Commission, whichever is earlier.

D.      The form shall be verified under penalty of perjury by the individual filing it or by an
        officer of the entity authorized to file it.

E.      The City Ethics Commission shall post the information in the notice on its website
        within one business day of its receipt of the notice. The City Clerk shall make the
        notice available for inspection within one business day of its receipt.


SEC. 48.08.7             Lobbying Disclosure — Fundraising Activity
                         Added by Ordinance No. 175432, effective 9/28/03.

A.      Every lobbying entity who within any 12 month period (i) engaged in fundraising
        activities on behalf of an elective City officer and/or any and all of his or her
        controlled committees, and which knows or has reason to know that the fundraising
        activities resulted in contributions, and/or (ii) delivered or acted as an intermediary
        for one or more contributions to the elective City officer and/or any and all of his or
        her controlled committees, shall file a notice with the City Ethics Commission any
        time the activities identified in (i) and/or (ii) aggregate more than $15,000 in the
        case of a member of the City Council, or more than $35,000 in the case of the
        Mayor, City Attorney, or Controller. The notice shall be filed on a form prescribed
        by the City Ethics Commission within one business day after any of these
        thresholds is exceeded. The notice shall contain the following information:

        1.       The name, address and telephone number of the filer, the name of the
                 elective City officer, and/or any or all of his or her controlled committees, on
                 whose behalf the lobbying entity engaged in fundraising activities, or
                 delivered or acted as intermediary for one or more contributions to the
                 elective City officer and/or any and all of his or her controlled committees,
                 the date of the fundraising activity, and the amount of contributions raised,
                 delivered or in connection with which the lobbying entity acted as an
                 intermediary.

        2.       For purposes of this section, a “controlled committee” does not include any
                 committee controlled by an elective City officer that is

                 (a)     formed to support or oppose a ballot measure or



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                                                                   Los Angeles Municipal Lobbying Ordinance



                 (b)     formed to support the election of that officer to other than elective City
                         office.

        3.       For purposes of this notification, if a fundraising event is sponsored or
                 hosted by more than one person, the amount of contributions received at or
                 as a result of the event shall be attributed to each lobbying entity who hosted
                 or sponsored the event according to the amount of the contributions that
                 resulted from that lobbying entity’s fundraising activities. If a contribution
                 results from the fundraising of more than one person and/or lobbying entity,
                 that contribution shall be apportioned equally to each of the persons and/or
                 lobbying entity that engaged in the fundraising activity.

B.      The original notice shall be filed with the City Ethics Commission, and copies shall
        be filed with the City Clerk and the elective City officer involved. Each notice may
        only include information relative to one elective officer.

C.      The form shall be considered filed on the date of the postmark or on the date of
        delivery to the City Ethics Commission, whichever is earlier.

D.      The form shall be verified under penalty of perjury by the individual filing it or by an
        officer of the entity authorized to file it.

E.      The City Ethics Commission shall post the information in the notice on its website
        within one business day of its receipt of the notice. The City Clerk shall make the
        notice available for inspection within one business day of its receipt.


Sec. 48.08.8             Lobbying Disclosure — Written Communications to
                         Neighborhood Councils
                         Added by Ordinance No. 176034, effective 7/26/04.

(a)     No lobbying entity registered with the City of Los Angeles shall deliver or send to a
        certified neighborhood council a written communication on behalf of a client,
        including, but not limited to, letters, faxes, electronic messages, and flyers, without
        a disclosure indicating that the communication was delivered or sent by that
        lobbying entity.

(b)     For purposes of subsection (a), the required disclosure shall be printed clearly and
        legibly in no less than 8-point type in a color or print that contrasts with the
        background so as to be legible and shall be presented in a clear and conspicuous
        manner in the written communication. The disclosure shall include all of the
        following information applicable to the written communication:

        (1)      The name of the lobbyist(s) that prepares, delivers or sends the written
                 communication;




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                                                                   Los Angeles Municipal Lobbying Ordinance



        (2)      The name of the registered lobbying firm(s) or lobbyist employer(s) who
                 employs the lobbyist(s) that prepares, delivers or sends the written
                 communication; and,

        (3)      The name of the client or clients on whose behalf the lobbying entity
                 prepares, delivers, or sends the written communication in an attempt to
                 influence municipal legislation.

SEC. 48.09               Compliance Measures and Enforcement
                         Amended by Ordinance No. 169916, effective 8/10/94.
                         Amended by Ordinance No. 171142, effective 8/3/96.
                         Amended by Ordinance No. 172942, effective 1/21/00.
                         Amended by Ordinance No. 178064, effective 1/15/07.
                         Amended by Ordinance No. 179934, effective 7/21/08.

A.      Audits. The City Ethics Commission shall have the authority to conduct audits of
        reports and statements filed pursuant to this Article. Such audits may be
        conducted on a random basis or when the City Ethics Commission staff has reason
        to believe that a report or statement may be inaccurate or has not been filed.

B.      Criminal Penalties.

        1.       Any person who knowingly or willfully violates any provision of this Article is
                 guilty of a misdemeanor. Any person who knowingly or willfully causes any
                 other person to violate any provision of this article, or who knowingly or
                 willfully aides and abets any other person in violation of any provision of this
                 article, is guilty of a misdemeanor.

        2.       Prosecution for violation of any provision of this article must be commenced
                 within one year after the date on which the violation occurred.

        3.       No person convicted of a violation of this Article may act as a lobbyist or
                 otherwise attempt to influence municipal legislation for compensation for one
                 year after such conviction.

C.      Civil Enforcement.

        1.       Any person who knowingly violates any provision of Section 48.04 shall be
                 liable in a civil action brought by the City Attorney. Any person who
                 intentionally or negligently violates any other provisions of this Article shall
                 be liable in a civil action brought by the City Attorney. Failure to properly
                 report any receipt or expenditure may result in civil penalties not to exceed
                 the amount not properly reported, or $2,000, whichever is greater. Any other
                 violation may result in civil penalties no greater than $2,000. If the court
                 determines that a violation was intentional, the court may order that the
                 defendant be prohibited from acting as a lobbyist or otherwise attempting to
                 influence municipal legislation for one year.


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                                                                 Los Angeles Municipal Lobbying Ordinance



        2.       In determining the amount of liability pursuant to this subsection, the court
                 shall take into account the seriousness of the violation and the degree of
                 culpability of the defendant.

        3.       If two or more persons are responsible for any violation, they shall be jointly
                 and severally liable.

        4.       No civil action alleging a violation of this Article shall be filed more than four
                 years after the date the violation occurred.

D.      Injunction. The City Attorney on behalf of the people of the City of Los Angeles
        may seek injunctive relief to enjoin violations of or to compel compliance with the
        provisions of this article.

E.      Administrative Penalties. The City Ethics Commission may impose penalties and
        issue orders for violation of this Article pursuant to its authority under Charter
        Section 706(c).

F.      Late Filing Penalties. In addition to any other penalty or remedy available, if any
        person fails to file any report or statement required by this Article, after any
        deadline imposed by this Article, such person shall be liable to the City Ethics
        Commission in the amount of twenty-five dollars ($25) per day after the deadline
        until the statement or report is filed, up to a maximum amount of $500. Liability
        need not be enforced by the Commission if its Executive Officer determines that the
        late filing was not willful and that enforcement of the penalty would not further the
        purposes of this Article. No liability shall be waived if a statement or report is not
        filed within 10 days after the Commission has sent specific written notice to the filer
        of the filing requirement.

G.      Restriction on Person Who Violates Certain Laws.

        1.       No person shall act or continue to act as a registered lobbyist or lobbying
                 firm if, within the prior four years, that person has been found by the City
                 Ethics Commission, in a proceeding pursuant to Charter Section 706, to
                 have violated City Charter Section 470(k) on any occasion. That
                 determination shall be based either on a finding of the City Ethics
                 Commission made after an administrative hearing or on a stipulation by the
                 lobbyist or lobbying firm entered into with the City Ethics Commission within
                 the previous four years.

        2.       If the City Ethics Commission makes a finding that the person has either

                 (1)     accepted responsibility for the violation in the form of having entered
                         into a stipulation with the City Ethics Commission in which the party
                         admits the violation, or otherwise exhibits evidence of having
                         accepted such responsibility, or



Last Revised July 21, 2008                                                                 Page 23 of 25
                                                                   Los Angeles Municipal Lobbying Ordinance



                 (2)     mitigated the wrongdoing by taking prompt remedial or corrective
                         action, then the City Ethics Commission may reduce the time period
                         during which the above prohibition would apply to a period of not less
                         than one year.

H.      Contract Bidder Certification of Compliance With Lobbying Laws.

        1.       Any bidder for a contract, as those terms are defined in Los Angeles
                 Administrative Code Section 10.40.1, shall submit with its bid a certification,
                 on a form prescribed by the City Ethics Commission, that the bidder
                 acknowledges and agrees to comply with the disclosure requirements and
                 prohibitions established in the Los Angeles Municipal Lobbying Ordinance if
                 the bidder qualifies as a lobbying entity under Section 48.02 of this article.
                 The exemptions contained in Section 48.03 of this article and Los Angeles
                 Administrative Code Section 10.40.4 shall not apply to this subsection.

        2.       Each agency shall include the Municipal Lobbying Ordinance in each
                 invitation for bids, request for proposals, request for qualifications, or other
                 solicitation related to entering into a contract with the City. The ordinance
                 must be provided in at least 10-point font and may be provided on paper, in
                 an electronic format, or through a link to an online version of the ordinance.
                 The ordinance is not required to be printed in a newspaper notice of the
                 solicitation.

        3.       This subsection does not apply to the renewal, extension, or amendment of
                 an existing contract, as long as the solicitation for the original contact met
                 the requirements in Paragraphs 1 and 2 above and the renewal, extension,
                 or amendment does not involve a new solicitation.

        4.       For purposes of this subsection, “agency” does not include a state agency
                 operating solely within the City such as the Community Redevelopment
                 Agency or Los Angeles City Housing Authority.


SEC. 48.10               Ethics Commission Reports
                         Added by Ordinance No. 169916, effective 8/10/94.

As soon as practicable after the close of each quarterly reporting period, the City Ethics
Commission shall prepare a report to the Mayor and City Council of lobbying activity which
occurred during the reporting period. Such report shall be in a form which, in the opinion of
the Commission, best describes the activities, receipts and expenditures of persons
subject to the requirements of this article.




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                                                                   Los Angeles Municipal Lobbying Ordinance



SEC. 48.11               Severability
                         Added by Ordinance No. 169916, effective 8/10/94.

If any provision of this article, or its application to any person or circumstance, is held
invalid by any court, the remainder of this article and its application to other persons and
circumstances, other than that which has been held invalid, shall not be affected by such
invalidity, and to that extent the provisions of this article are declared to be severable.


. . . .
. . . .
. . . .




Last Revised July 21, 2008                                                                   Page 25 of 25
              Appendix 5

   Public Matching Funds Regulations
(Los Angeles Administrative Code § 24.5)
              Public Matching Funds

♦♦♦Los Angeles Administrative Code Section 24.5


                              Last Revised January 26, 2007




                                                    Prepared by
                                   City Ethics Commission



                                                   CEC



                                          Los Angeles


                             200 North Spring Street, 24th Floor
                                        Los Angeles, CA 90012
                                               (213) 978-1960
                                           TTY (213) 978-2609
                                         http://ethics.lacity.org
                                      Los Angeles Administrative Code § 24.5
                                             TABLE OF CONTENTS


(a)         Scope. ......................................................................................................................1

(b)         Definitions. ...............................................................................................................1

      Authorized Agent.............................................................................................................1
      Commission.....................................................................................................................1
      Debate.............................................................................................................................1
      Fund ................................................................................................................................1
      General Election..............................................................................................................1
      Matchable Contributions..................................................................................................1
      Participant .......................................................................................................................1
      Primary Election ..............................................................................................................2
      Controlled Campaign Committee ....................................................................................2
      Statement of Acceptance or Rejection of Matching Funds ..............................................2
      Surplus Public Funds ......................................................................................................2
      Qualified Campaign Expenditure.....................................................................................2
      Treasurer.........................................................................................................................2

(c)         Statement of Acceptance or Rejection of Matching Funds.......................................2

(d)         Commission Determination of Eligibility. ..................................................................4

(e)         Participant Qualification For Ballot. ..........................................................................4

(f)          Payments for an Election. ........................................................................................5

(g)         Allocation of Matching Funds. ..................................................................................6

(h)         Requesting Matching Funds Payments....................................................................7

(i)          Matching Funds Claim Form....................................................................................8

(k)         Payment Is Not Final Determination.........................................................................9

(l)          Returned Contributions Are Not Matchable .............................................................9

(m)         Improper Use of Public Matching Funds. .................................................................9

(n)         Additional Reviews and Post-Payment Audits..........................................................9

(o)         Matching Fund Claim Amendments. ........................................................................9



Last Revised January 26, 2007
(p)      Request for Review. ...............................................................................................10

(q)      Repayment of Public Matching Funds....................................................................10

(r)      Surplus Public Funds. ............................................................................................10

(s)      Recordkeeping Requirements................................................................................11

(t)      Failure to Comply...................................................................................................11




Last Revised January 26, 2007
                                                                              Los Angeles Administrative Code § 24.5




                                         Public Matching Funds
                                Los Angeles Administrative Code, Chapter 5
                                 Added by Ordinance No. 168501, effective 2/04/93.
                                Amended by Ordinance No. 171499, effective 3/08/97.
                                Amended by Ordinance No. 172930, effective 1/10/00.
                                Amended by Ordinance No. 175345, effective 8/16/03.




Sec. 24.5                   Procedural Regulations for Administering the Public Matching
                            Funds Program

(a)      Scope. This section sets forth the procedural requirements of the Los Angeles City
         Public Matching Funds Program.

(b)      Definitions. The following terms used in this section and in Los Angeles Municipal
         Code Section 49.7.1, et seq., are defined below. Except as provided below, the
         definitions and provisions of the Political Reform Act of 1974, as amended, the
         regulations of the Fair Political Practices Commission, Los Angeles City Charter
         Sections 470, 471, and 609(e), and Los Angeles Municipal Code Section 49.7.1, et
         seq. govern the interpretation of these regulations.

         “Authorized Agent” means any individual named on a written and signed list of
         individuals submitted by the candidate who are to receive contributions and make
         expenditures.

         “Commission” means the City Ethics Commission or the staff of the Ethics
         Commission acting on the Commission’s behalf.

         “Debate” means discussion between two or more candidates who have qualified to
         appear on a ballot for an elective City office that is moderated by an independent
         third party and that is attended by the public.

         “Fund” means the Los Angeles City Public Matching Campaign Funds Trust Fund.

         “General Election” means the City’s general municipal or special runoff election.

         “Matchable Contributions” means campaign contributions received by a
         candidate who has qualified for public matching funds that are eligible to be
         matched with public matching funds.

         “Participant” means a candidate who has filed a Statement of Acceptance or
         Rejection of Matching Funds stating his or her intent to participate in the Matching
         Funds Program and who has met all eligibility requirements to receive public
         matching funds.



Last Revised January 26, 2007                Page 1 of 11
         “Primary Election” means the City’s primary nominating election and any special
         primary election.

         “Controlled Campaign Committee” means the campaign committee, authorized
         by the candidate on that candidate’s Statement of Organization (California Fair
         Political Practices Commission Form 410), for the purpose of receiving
         contributions and making expenditures in connection with that candidate’s election
         to the office specified on his or her current Declaration of Intent to Receive and
         Solicit Contributions.

         “Statement of Acceptance or Rejection of Matching Funds” means the
         statement filed by a candidate with the Ethics Commission stating that candidate’s
         intention to participate or decline participation in the City’s public matching funds
         program.

         “Surplus Public Funds” means, for a participant who received public matching
         funds, the amount of unspent public matching funds after the candidate has
         withdrawn his or her candidacy, or after an election and after expenditures incurred
         in that election have been paid, which surplus funds are to be repaid to the
         Matching Campaign Funds Trust Fund.

         “Qualified Campaign Expenditure” means the following:

                  (1)       Any expenditure made by a candidate for elective City office, or by a
                            committee controlled by that candidate, for the purpose of influencing
                            or attempting to influence the action of the voters for or against the
                            election of any City candidate;

                  (2)       A non-monetary contribution provided at the request of or with the
                            approval of the candidate, officeholder, or committee controlled by the
                            candidate or officeholder;

                  (3)       “Qualified campaign expenditure” does not include any payment if it is
                            clear from the surrounding circumstances that it was not made in any
                            part for political purposes.

         “Treasurer” means the treasurer of the candidate’s Statement of Understanding
         and on the candidate’s California Fair Political Practices Commission Statement of
         Organization Form 410.


(c)      Statement of Acceptance or Rejection of Matching Funds.

         (1)      Regardless of whether a candidate elects to accept public matching funds,
                  each candidate for elective City office must submit a Statement of
                  Acceptance or Rejection of Matching Funds, as required by Los Angeles



Last Revised January 26, 2007             Page 2 of 11
                  Municipal Code Section 49.7.18 at the time that candidate files his or her
                  Declaration of Intent to Become a Candidate pursuant to City Elections
                  Code Section 321. Each candidate must provide the following information on
                  his or her Statement of Acceptance or Rejection of Matching Funds:

                  (A)       the candidate’s name, business address, and telephone number at
                            which the candidate can be reached during regular business hours;

                  (B)       the office the candidate is seeking;

                  (C)       the election for which the statement is filed;

                  (D)       whether or not the candidate elects to accept public matching funds.

         (2)      Each candidate who elects to decline matching funds shall certify on his or
                  her Statement of Acceptance or Rejection of Matching Funds that he or she
                  understands that his or her rejection is effective for both the primary
                  nominating and general municipal elections.

         (3)      Each candidate who elects to accept matching funds must also certify the
                  following on his or her Statement of Acceptance or Rejection of Matching
                  Funds:

                  (A)       that he or she understands the requirements set forth in the City’s
                            Campaign Finance Ordinance (Los Angeles Municipal Code Section
                            49.7.1, et seq.) and understands that those requirements must be
                            satisfied before the candidate may receive public funds; and

                  (B)       that he or she agrees to participate in at least one debate with his or
                            her opponent(s) in the primary election and two debates with his or
                            her opponent in the general election, if applicable; and

                  (C)       that the candidate has not made and agrees not to make any
                            expenditures in excess of the expenditure limits of Los Angeles
                            Municipal Code Section 49.7.13 unless those limits have been lifted
                            as provided in Los Angeles Municipal Code Section 49.7.14; and

                  (D)       that the candidate has not used and agrees not to use any personal
                            funds for the election in excess of the applicable limits of Los Angeles
                            Municipal Code Section 49.7.19 A 3; and

                  (E)       that his or her acceptance of matching funds is effective for both the
                            primary nominating and general municipal elections; and

                  (F)       that if the candidate chooses to withdraw from participation in the
                            matching funds program, he or she must do so within seven days



Last Revised January 26, 2007              Page 3 of 11
                            after the final filing date for filing a Declaration of Intention to Become
                            a Candidate and only if another candidate for the same office rejects
                            matching funds.

         (4)      Each Statement of Acceptance or Rejection must be signed by the
                  candidate and verified under penalty of perjury.

         (5)      Any candidate who fails to file a Statement of Acceptance or Rejection of
                  Matching Funds at the time that candidate files his or her Statement of
                  Declaration of Intent to Become a Candidate may not participate in the
                  Matching Funds Program.

         (6)      Any candidate who files a statement electing to receive public matching
                  funds and who then elects to decline matching funds within seven days after
                  the final filing date for filing a Declaration of Intent to Become a Candidate
                  must provide a written notice to that effect. That notice shall be signed by
                  the candidate and received by the Commission by 5:00 p.m. of the last day
                  to withdraw from participation in the matching funds program.


(d)      Commission Determination of Eligibility.

         (1)      No payments from the Fund shall be made to a participant unless the
                  Commission staff has determined that the candidate has met all eligibility
                  requirements contained in Los Angeles Municipal Code Section 49.7.1, et
                  seq. and these regulations.

         (2)      The Commission staff will notify the participant as to whether or not it
                  determines that the candidate is eligible to receive public matching funds.
                  Such notice shall be signed by the Executive Officer or by another
                  Commission staff member authorized by the Executive Officer to do so.


(e)      Participant Qualification For Ballot.

         (1)      Any candidate who filed a Statement of Acceptance or Rejection of Matching
                  Funds electing to participate in the Matching Funds Program who fails to
                  qualify to have his or her name appear on the ballot or is not eligible to have
                  write-in votes counted may not receive matching funds.

         (2)      Any matching funds program participant who initially qualifies for the ballot
                  but who is later disqualified from the ballot will be suspended from the
                  Matching Funds Program at the time of that disqualification and will be
                  ineligible to receive additional public matching funds. A disqualified
                  participant will not be eligible to receive matching funds unless and until
                  such time that the participant’s disqualification is restored.


Last Revised January 26, 2007              Page 4 of 11
         (3)      If a participant is disqualified from the ballot after receiving public matching
                  funds, the participant may not thereafter spend public funds in his or her
                  possession for any purpose other than the payment of qualified campaign
                  expenditures incurred before the date of that participant’s disqualification. All
                  public funds in excess of such expenditures must be repaid to the
                  Commission within 10 days of the date of the participant’s disqualification.



(f)      Payments for an Election.

         (1)      A participant may submit a matching fund payment request as soon as the
                  total amount claimed reaches $10,000 or more until fourteen days preceding
                  an election, at which time a participant may submit requests for payments of
                  $1,000 or more. Payments will be disbursed and available for receipt within
                  three working days after receipt by the Commission. The Commission,
                  however, will issue no matching funds payment to any participant in a
                  primary election any earlier than the day the City Clerk certifies that the
                  candidate’s name will appear on the primary nominating ballot or that the
                  candidate has qualified to have write-in votes counted.

         (2)      No public matching fund payment will be issued to a participant in a runoff or
                  general election any earlier than the day the City Clerk certifies that the
                  candidate’s name will appear on the general election ballot. Upon
                  certification for the general election, each participating candidate will receive
                  one-fifth of the amount of funds specified by Los Angeles Municipal Code
                  Section 49.7.22, not subject to the matching funds requirements detailed in
                  Los Angeles Municipal Code Section 49.7.21.

         (3)      No request for public matching funds will be accepted by the Commission
                  any later than three months after an election.

         (4)      The Ethics Commission will issue a Matching Funds Payment Authorization
                  Letter with supporting documents to the City Controller’s Office certifying the
                  amount of the matching funds payable to a participant. The Controller’s
                  Office will issue all such payments through the Paymaster’s Office only to
                  Ethics Commission staff. All checks issued pursuant to Authorization letters
                  received by the Controller’s Office by 2:00 p.m. on Monday through Friday
                  will be available to Commission staff by noon of the next working day.
                  Checks issued pursuant to Authorization Letters that are received after 2:00
                  p.m. on Friday will be available for Commission staff by noon on the
                  following Tuesday. Matching fund payments will be disbursed at the Ethics
                  Commission Office after 2:00 p.m. on the day such payments are issued
                  from the Controller’s Office.




Last Revised January 26, 2007           Page 5 of 11
(g)      Allocation of Matching Funds.

         (1)      No later than 7 days after the final day to decline participation in the
                  matching funds program, the City Ethics Commission shall determine at a
                  public meeting of the Commission whether, based on the number of
                  participating candidates, the amount of money in the Fund is adequate to
                  provide the maximum matching funds to the participants. If the Commission
                  determines that the Fund may not be adequate it will approve a method for
                  disbursing the funds on a pro rata basis consistent with the following
                  principles:

                  (A)       The Commission will establish lower maximum amounts of public
                            matching funds available to each participant rather than changing the
                            matching funds formula.

                  (B)       A portion of the Fund will be reserved for disbursement in the general
                            or runoff election.

                  In addition, no later than two weeks before the primary election, the City
                  Ethics Commission at a public meeting of the Commission shall review the
                  balance of the Fund. The Commission may adjust its previous estimates and
                  raise the maximum amount of public matching funds available to
                  participants. In no case, however, will the amount disbursed to the
                  participants exceed the maximum amounts established in Los Angeles
                  Municipal Code Section 49.7.22A.

         (2)      No later than 7 days after the day the City Clerk certifies the candidates
                  whose names will appear on the general election ballot, the City Ethics
                  Commission shall determine at a public meeting of the Commission whether,
                  based on the number of participating candidates, the amount of money in
                  the Fund is adequate to provide the maximum matching funds to the
                  participants. If the Commission determines that the Fund may not be
                  adequate it will approve a method for disbursing the funds on a pro rata
                  basis consistent with the following principle:

                  (A)       The Commission will establish lower maximum amounts of public
                            matching funds available to each participant rather than changing the
                            matching funds formula.

         (3)      These actions shall be approved by the Commission by resolution and shall
                  not require the adoption of a regulation.




Last Revised January 26, 2007             Page 6 of 11
(h)      Requesting Matching Funds Payments.

         (1)      The Commission staff will review matching fund claim forms and, based on
                  the review, the Executive Officer (or in his or her absence, the Deputy
                  Director) shall certify the amount of matching funds payable to a participant
                  filing a claim form. Copies of each certification shall be sent to the participant
                  and to the Controller.

         (2)      Upon certification of the amount of matching funds payable, the Commission
                  staff will request the Controller to issue a matching funds payment in the
                  amount certified. Payments will be drawn from the Matching Funds
                  Campaign Trust Fund, made payable to the candidate, and returned to the
                  Commission for distribution.

         (3)      The Commission staff will release matching fund payments only to a
                  participating candidate, or to that candidate’s treasurer or authorized agent
                  displaying proper identification, within three working days after the
                  Commission receives the request for payment as required by Los Angeles
                  Municipal Code Section 49.7.23, set forth in Subsections (f)(1) and (2)
                  above.

         (4)      Any candidate receiving a public matching funds payment, or any authorized
                  agent receiving such a payment on the candidate’s behalf, must sign a
                  Matching Funds Payment Report on the date which he or she receives that
                  payment. No matching fund payment will be issued without the signature of
                  the candidate or the candidate’s authorized agent on the report. Each
                  Matching Funds Payment Report will contain the following information:

                  (A)       the name of the participant;

                  (B)       the office the participant is seeking;

                  (C)       the date the Commission received the matching funds payment from
                            the Controller;

                  (D)       the amount of the certified matching funds payment;

                  (E)       the name of the individual receiving the payment;

                  (F)       the signature of the candidate or authorized agent receiving the
                            payment;

                  (G)       the date the individual received the payment; and

                  (H)       a summary of all matching funds payments issued to the candidate to
                            date.


Last Revised January 26, 2007              Page 7 of 11
(i)      Matching Funds Claim Form.

         (1)      To request matching fund payments, a participant in the matching funds
                  program must file a Matching Funds Claim Form with the Commission,
                  containing the following information:

                  (A)       the participant’s name, business address, and telephone number at
                            which the participant may be reached during regular business hours;

                  (B)       the office the participant is seeking;

                  (C)       the election for which the Matching Funds Claim Form is filed;

                  (D)       the name and identification number of the participant’s controlled
                            committee;

                  (E)       the date of the claim; and

                  (F)       the total amount of matching funds claimed.

         (2)      Matchable Contributions List. Each participant must submit with his or her
                  Matching Funds Claim Form the following detailed information regarding
                  each contribution for which the candidate requests public matching funds:

                  (A)       The list shall be alphabetical by the names of the contributors and
                            shall contain the following for each contribution: the contributor's
                            name, street address, occupation, employer, the date the contribution
                            was received, the amount of the contribution, the cumulative amount
                            of contributions received from the contributor for the same election
                            and the cumulative amount of matching funds already received in the
                            same election based on contributions from the contributor.

                  (B)       If a contributor is self-employed, the list shall include the name, if any,
                            of the contributor's business.

         (3)      The participant must attach to the Matching Funds Claim Form a true and
                  correct copy of each contributor check for which the participant requests
                  matching funds. Participants may, at their discretion, provide copies of
                  checks that omit any contributor information that is not required to be
                  disclosed under Subsection (i)(2) above.

         (4)      Both the candidate and treasurer must sign each Matching Fund Claim Form
                  and must verify under penalty of perjury that it and all supporting documents
                  are true and complete to the best of their knowledge, information and belief.
                  The Commission will not accept any unverified claim forms.




Last Revised January 26, 2007              Page 8 of 11
         (5)      The Commission will not accept illegible matching fund claims or supporting
                  documents. The Commission will not accept any claims or supporting
                  documents that contain information in other than ink.

(k)      Payment Is Not Final Determination. A payment of public matching funds does
         not constitute the Commission’s final determination of the amount for which a
         participant may qualify.

(l)      Returned Contributions Are Not Matchable. A matchable contribution may not
         be claimed for any portion of a contribution that is returned to or not paid by the
         contributor. A request for matching funds that includes a claim for matching any
         contribution that was returned or not paid will be reduced by the amount returned or
         not paid.

(m)      Improper Use of Public Matching Funds. The expenditure of public matching
         funds on other than qualified campaign expenditures shall constitute a
         misappropriation of these funds and shall constitute a violation of this section.


(n)      Additional Reviews and Post-Payment Audits.

         (1)      The Commission staff’s eligibility and payment determinations are subject to
                  post-payment audits and readjustment pursuant to the audit requirements
                  otherwise established in Los Angeles Administrative Code Section 20.49.

         (2)      Upon amendment of any matching funds claim submitted by a participant, or
                  on additional review by the Commission staff, the Commission staff may
                  notify the participant that he or she qualifies for additional matching funds.

         (3)      Upon such amendment or additional review, the Commission staff may
                  notify the participant that he or she received funds in excess of those eligible
                  to be matched. In any such instance, the participant must refund the amount
                  to the Ethics Commission within 10 days of such notice, or subsequent
                  payments will be reduced by the amount of the overpayment. Candidates
                  who do not refund public funds as may be required are subject to legal
                  action for collection of public matching funds.


(o)      Matching Fund Claim Amendments.

         (1)      A participant may amend a previously submitted matching fund claim and
                  any supporting documentation that accompanied that claim. The
                  amendment must state the reason why an amendment is necessary and
                  must itemize the data amended.




Last Revised January 26, 2007           Page 9 of 11
         (2)      Commission staff will review each amendment to determine whether an
                  adjustment in the matching fund payments to the participant is necessary.

         (3)      Any supplementary matching fund payment that may be necessary pursuant
                  to an amendment will be disbursed within three working days after
                  submission of the amendment and all supporting documentation required by
                  the Commission.

         (4)      The Commission will accept only amended claim forms that conform to the
                  requirements of Subsection (i) of this section.

(p)      Request for Review. If the Commission staff determines that a candidate is
         ineligible to receive public matching funds or that any matching funds claimed by a
         participant are not payable, in whole or in part, the participant may submit to the
         Commission Executive Officer a written request for review of the determination.
         The request shall set forth in writing the reasons why the candidate believes that he
         or she is eligible or that a different amount of funds should be paid. The Executive
         Officer will review the request for payment and issue a determination within two
         working days.


(q)      Repayment of Public Matching Funds.

         (1)      The Commission staff will notify a participant in writing if he or she must
                  repay any public funds.

         (2)      Participants returning public funds may return a full uncashed payment to
                  the City Ethics Commission for deposit into the City’s Public Matching Funds
                  Trust Fund. A participant who returns any uncashed portion of a matching
                  fund payment must make a check payable to the City Ethics Commission for
                  deposit in the City’s Public Matching Funds Trust Fund.

         (3)      Disqualification Due to Fraudulent Acts. A participant who has been
                  disqualified from the ballot on the grounds that he or she committed
                  fraudulent acts in order to obtain a place on the ballot, must reimburse the
                  Commission in an amount equal to the total public matching funds paid to
                  the participant. Payments required pursuant to this paragraph must be made
                  within 10 days after the participant is disqualified.


(r)      Surplus Public Funds.

         (1)      A participant must pay to the Commission any surplus public matching funds
                  remaining in the participant’s possession no later than 30 days after the
                  election or, if the candidate withdraws from the election, no later than 10
                  days after the participant withdraws his or her candidacy.


Last Revised January 26, 2007          Page 10 of 11
(s)      Recordkeeping Requirements.

         (1)      Nothing in this section shall be construed to modify any existing
                  requirements otherwise established by law.

         (2)      Audits and Reviews. Statements and forms filed pursuant to requirements
                  of the Matching Funds Program are subject to desk and field audits by the
                  Commission as authorized under Charter Section 702 (d)

         (3)      Best Efforts. The participant must use his or her best efforts to obtain,
                  maintain and, if requested, submit to the Commission the required
                  information and shall keep a complete record of such efforts. With regard to
                  the recordkeeping requirements for receipts, bills, and bank records, the
                  participant will not be considered to have exercised best efforts unless he or
                  she has made at least one written effort per transaction to obtain the
                  documentation.

         (4)      Four-Year Retention Period. The participant must retain all records and
                  documents required to be kept under Government Code Section 91011 for
                  four years after the date of the last election to which the records or
                  documents relate.

         (5)      Custodian and Location. A participant must notify the Commission in
                  writing of any person other than the treasurer who is the custodian for the
                  participant’s records. In addition, the participant must notify the Commission
                  in writing of the location of those records and documents and of any change
                  of address.

(t)      Failure to Comply. The failure of a participant, controlled committee of a
         participant or campaign treasurer to comply with the provisions of this section, and
         the failure of such person to provide full and accurate information required by this
         section, is unlawful, constitutes a violation of this section and is subject to the
         penalties and remedies set forth in Charter Section 706 and Los Angeles Municipal
         Code Section 49.7.28.


.....
.....
.....




Last Revised January 26, 2007          Page 11 of 11
          Appendix 6

Federal Elections Commission’s
Brochure on “Foreign Nationals”
                                                                     Foreign Nationals Brochure



Foreign Nationals
Federal Election Commission
Published in July 2003


Introduction
     The ban on political contributions and
expenditures by foreign nationals was first
enacted in 1966 as part of the amendments
to the Foreign Agents Registration Act
(FARA), an “internal security” statute. The
goal of the FARA was to minimize foreign
intervention in U.S. elections by establishing
a series of limitations on foreign nationals.
These included registration requirements for
the agents of foreign principals and a
general prohibition on political contributions
by foreign nationals. In 1974, the
prohibition was incorporated into the
Federal Election Campaign Act (the FECA),
giving the Federal Election Commission
(FEC) jurisdiction over its enforcement and interpretation.
     This brochure has been developed to help clarify the rules regarding the political
activity of foreign nationals; however, it is not intended to provide an exhaustive
discussion of the election law. If you have any questions after reading this, please
contact the FEC in Washington, D.C., at 1-800-424-9530 or 202-694-1100. Members of
the press should contact the FEC Press Office at 202-694-1220 or at the toll free number
listed above.
     Except where otherwise noted, all citations refer to the Act and FEC regulations.
Advisory Opinions (AOs) issued by the Commission are also cited.


The Prohibition
    The Federal Election Campaign Act (FECA) prohibits any foreign national from
contributing, donating or spending funds in connection with any federal, state, or local
election in the United States, either directly or indirectly. It is also unlawful to help
foreign nationals violate that ban or to solicit, receive or accept contributions or donations
from them. Persons who knowingly and willfully engage in these activities may be
subject to fines and/or imprisonment.




                                              1
                                                                                Foreign Nationals Brochure



Who is a Foreign National?
    The following groups and individuals are considered “foreign nationals” and are,
therefore, subject to the prohibition:
    • Foreign governments;
    • Foreign political parties;
    • Foreign corporations;
    • Foreign associations;
    • Foreign partnerships;
    • Individuals with foreign citizenship; and
    • Immigrants who do not have a “green card.”

Individuals: The “Green Card” Exception
    An immigrant may make a contribution if he or she has a “green card” indicating his
or her lawful admittance for permanent residence in the United States.


Domestic Subsidiaries and Foreign-Owned Corporations
    A U.S. subsidiary of a foreign corporation or a U.S. corporation that is owned by
foreign nationa ls may be subject to the prohibition, as discussed below.

PAC Contributions for Federal Activity
    A domestic subsidiary of a foreign corporation may not establish a federal political
action committee (PAC) to make federal contributions if:
    (1) The foreign parent corporation finances the PAC’s establishment, administration,
        or solicitation costs; or
    (2) Individual foreign nationals:
        • Participate in the operation of the PAC;
        • Serve as officers of the PAC;
        • Participated in the selection of persons who operate the PAC; or
        • Make decisions regarding PAC contributions or expenditure.
            11 CFR 110.20(i).
            (See also AOs 2000-17, 1995-15, 1990-8, 1989-29, and 1989-20.)

Corporate Contributions for Nonfederal Activity
   Additionally, a domestic subsidiary of a foreign corporation (or a domestic
corporation owned by foreign nationals) may not donate funds or anything of value in
connection with state or local elections if:
   (1) These activities are financed by the foreign parent or owner; or
   (2) Individual foreign nationals are involved in any way in the making of donations to
       nonfederal candidates and committees.1



1 This means that foreign nationals may not participate in donation activity, allocate funds for donations,
or make decisions regarding donations (e.g., selecting the recipients, approving the making of donations, or
approving the issuance of donation checks).


                                                     2
                                                                            Foreign Nationals Brochure


   Please note that many states place additional restrictions on donations made to
nonfederal candidates and committees. 11 CFR 110.20(i). (See also AOs 1992-16,
1985-3, 1982-10, and MUR 2892.)


Volunteer Activity
    Generally, an individual may volunteer personal
services to a federal candidate or federal political
committee without making a contribution. The Act
provides this volunteer “exemption” as long as the
individual performing the service is not compensated
by anyone. 11 CFR 100.74. The Commission has
addressed applicability of this exemption to volunteer
activity by a foreign national, as explained below.
    In Advisory Opinion 1987-25, the Commission
allowed a foreign national student to provide
uncompensated volunteer services to a Presidential
campaign. By contrast, the decision in AO 1981-51
prohibited a foreign national artist from donating his
services in connection with fundraising for a Senate
campaign. 2


Nonelection Activity by Foreign Nationals
    Despite the general prohibition on foreign national contributions and donations,
foreign nationals may lawfully engage in political activity that is not connected with any
election to political office at the federal, state, or local levels. The FEC has clarified such
activity with respect to individuals’ activities.
    In Advisory Opinion 1989-32, the Commission concluded that although foreign
nationals could make disbursements solely to influence ballot issues, a foreign national
could not contribute to a ballot committee that had coordinated its efforts with a
nonfederal candidate’s re-election campaign.
    In Advisory Opinion 1984-41, the Commission allowed a foreign national to
underwrite the broadcast of apolitical ads that attempted to expose the alleged political
bias of the media. The Commission found that these ads were not election influencing
because they did not mention candidates, political offices, political parties, incumbent
federal officeholders or any past or future election. 3




2 The Commission has stated that this opinion is not superceded by AO 1987-25. Individuals may obtain
further guidance in this area by requesting an advisory opinion about their proposed activity.
3 Individuals and committees should consider requesting an advisory opinion before engaging in other
types of political activity involving foreign nationals.


                                                  3
                                                                    Foreign Nationals Brochure



Assisting Foreign National Contributions or Donations
    Under Commission regulations it is unlawful to knowingly provide substantial
assistance to foreign nationals making contributions or donations in connection with any
U.S. election. 11 CFR 110.20(h). “Substantial assistance” refers to active involvement
in the solicitation, making, receipt or acceptance of a foreign national contribution or
donation with the intent of facilitating the successful completion of the transaction. This
prohibition includes, but is not limited to individuals who act as conduits or
intermediaries. 67 FR 69945-6 (November 19, 2002).


Soliciting, Accepting, or Receiving Contributions and
Donations from Foreign Nationals
    As noted earlier, the Act prohibits knowingly soliciting, accepting or receiving
contributions or donations from foreign nationals. In this context, “knowingly” means
that a person:
    • Has actual knowledge that the funds solicited, accepted, or received are from a
        foreign national;
    • Is aware of facts that would lead a reasonable person to believe that the funds
        solicited, accepted, or received are likely to be from a foreign national;
    • Is aware of facts that would lead a reasonable person to inquire whether the
        source of the funds solicited, accepted or received is a foreign national.
        11 CFR 110.20 (a)(4) (i), (ii) and (iii).
    Pertinent facts that may lead to inquiry by
the recipient include, but are not limited to the
following: A donor or contributor uses a foreign
passport, provides a foreign address, makes a
contribution from a foreign bank, or resides
abroad. Obtaining a copy of a current and valid
U.S. passport would satisfy the duty to inquire
whether the funds solicited, accepted, or
received are from a foreign national.
11 CFR 110.20(a)(7).


Monitoring Prohibited Contributions
    When a federal political committee (a committee active in federal elections) receives
a contribution it believes may be from a foreign national, it must:
    • Return the contribution to the donor without depositing it; or
    • Deposit the contribution and take steps to determine its legality, as described
        below.
    Either action must be taken within 10 days of the treasurer’s receipt.
11 CFR 103.3 (b)(1).




                                             4
                                                                                Foreign Nationals Brochure


    If the committee decides to deposit the contribution, the treasurer must make sure that
the funds are not spent because they may have to be refunded. Additionally, he or she
must maintain a written record explaining why the contribution may be prohibited.4
11 CFR 103.3 (b)(4) and (5). The legality of the contribution must be confirmed within
30 days of the treasurer’s receipt, or the committee must issue a refund.5
    If the committee deposits a contribution that appears to be legal, but later discovers
that the deposited contribution is from a foreign national, it must refund the contribution
within 30 days of making the discovery. If a committee lacks sufficient funds to make a
refund when a prohibited contribution is discovered, it must use the next funds it
receives. 11 CFR 103.3 (b) (1) and (2).




4 This information must be included when the receipt of the contribution is reported.
5 For example, evidence of legality includes a written statement from the contributor explaining why the
contribution is legal (e.g. donor has a green card), or an oral explanation that is recorded in memorandum.


                                                     5
      Appendix 7

City Ethics Commission’s
    Infractions Policy
                                Los Angeles City Ethics Commission

                                     Infractions Policy
                                      Adopted March 8, 2005
                                    Last amended March 9, 2010

                                            Introduction

The City Ethics Commission (Commission) continues and reaffirms its commitment to the fullest
possible enforcement of the laws under its jurisdiction. The Commission recognizes, however,
that certain violations warrant treatment as minor violations or infractions. Therefore the
Commission adopts this policy, which applies in the circumstances described below.

                                            Definitions

“Amount in violation” means the portion of an excess contribution that exceeds the limits in the
applicable law.

“Applicable law” means one of the following sections of City law:
       • Los Angeles City Charter § 470(c)(3);
       • Los Angeles City Charter § 470(c)(4);
       • Los Angeles City Charter § 470(c)(5);
       • Los Angeles City Charter § 470(c)(6);
       • Los Angeles City Charter § 470(c)(7);
       • Los Angeles City Charter § 470(c)(8);
       • Los Angeles City Charter § 470(d);
       • Los Angeles City Charter § 803(b)(3);
       • Los Angeles City Charter § 803(b)(4);
       • Los Angeles City Charter § 803(b)(5);
       • Los Angeles City Charter § 803(b)(6);
       • Los Angeles City Charter § 803(d) regarding cash contributions;
       • Los Angeles Municipal Code § 49.7.12(A)(4);
       • Los Angeles Municipal Code § 49.7.12(A)(5)(a);
       • Los Angeles Municipal Code § 49.7.12(B)(5); or
       • Los Angeles Municipal Code § 49.7.24.

“Board of Education office” means the office of a member of the Board of Education of the Los
Angeles Unified School District.

“City office” means the office of mayor, controller, city attorney, or councilmember of the City of
Los Angeles.

“Committee” means a committee organized by an individual for the purpose of seeking City or
Board of Education office, a committee organized by a City or Board of Education officeholder to
respond to a recall election, a committee (other than a committee controlled by a candidate) that
supports or opposes a candidate for City or Board of Education office, or an officeholder
committee organized under Los Angeles Municipal Code § 49.7.12.

“Contributor” means a person who made a contribution to a committee.

“Excess contribution” means a contribution in excess of the limits in the applicable law.



CEC Infractions Policy                          1 of 2                                      March 2010
                                               Applicability

This version of the policy became effective on January 12, 2010.

1.     This policy may not be applied to a particular committee or contributor more than once.

2.     If a committee accepts excess contributions, it may receive the benefits of this policy
       under the applicable law if the total amount in violation of all excess contributions
       combined does not exceed the lesser of 0.5 percent of the total value of contributions
       made to the committee or $6,000;

3.     If a contributor makes excess contributions, the contributor may receive the benefits of this
       policy under the applicable law if the total amount in violation of all excess contributions
       combined does not exceed $1,000.

4.     Excess contributions that are properly disgorged through the Commission’s disgorgement
       policy do not count toward the limits in 2 and 3.

5.     The following procedures apply to this policy:

       a.     The Commission will make one offer to enter into an infraction stipulation with a
              committee or contributor who qualifies to receive the benefits of this policy. If the
              offer is rejected, no further infraction offers will be made regarding the violations that
              were the subject of the offer.

       b.     Committees and contributors who elect to receive the benefits of this policy must
              acknowledge giving or receiving one or more excess contributions by entering into
              an infraction stipulation with the Commission.

       c.     The Commission staff must notify committees and contributors when an infraction
              stipulation is offered that this policy cannot be applied to them again in the future.

       d.     The Commission may not assess monetary penalties for infractions.

                                               Staff Discretion

The Commission staff determines whether this policy may be applied in cases in which the
applicability requirements are met. This policy does not apply if, in the judgment of the
Commission staff, extenuating circumstances exist. Extenuating circumstances include but are
not limited to a pattern of violating laws within the Commission’s jurisdiction; evidence of
intentional conduct; the enforcement history of a contributor or, in the case of a committee, the
individual who organized the committee; a failure to cooperate during the audit or investigation
process; and the overall interests of justice.




CEC Infractions Policy                             2 of 2                                      March 2010
                   Appendix 8

            City Ethics Commission’s
Disgorgement Policy Regarding Excess Contributions
                                Los Angeles City Ethics Commission

                                   Disgorgement Policy
                                    Adopted September 22, 2004
                                    Last amended March 9, 2010

                                            Introduction

The City Ethics Commission (Commission) continues and reaffirms its commitment to the fullest
possible enforcement of the laws under its jurisdiction. The Commission has determined,
however, that candidates, committees, and officeholders may return excess contributions in
certain circumstances, to avoid enforcement penalties. The Commission, therefore, adopts this
policy, which may be applied in those cases that meet all of the requirements noted below.

                                            Definitions

“Applicable law” means one of the following sections of City law:
       • Los Angeles City Charter § 470(c)(3);
       • Los Angeles City Charter § 470(c)(4);
       • Los Angeles City Charter § 470(c)(5);
       • Los Angeles City Charter § 470(c)(6);
       • Los Angeles City Charter § 470(c)(7);
       • Los Angeles City Charter § 470(c)(8);
       • Los Angeles City Charter § 470(d);
       • Los Angeles City Charter § 803(b)(3);
       • Los Angeles City Charter § 803(b)(4);
       • Los Angeles City Charter § 803(b)(5);
       • Los Angeles City Charter § 803(b)(6);
       • Los Angeles City Charter § 803(d) regarding cash contributions;
       • Los Angeles Municipal Code § 49.7.12(A)(4);
       • Los Angeles Municipal Code § 49.7.12(A)(5)(a);
       • Los Angeles Municipal Code § 49.7.12(B)(5); or
       • Los Angeles Municipal Code § 49.7.24.

“Board of Education office” means the office of a member of the Board of Education of the Los
Angeles Unified School District.

“City office” means the office of mayor, controller, city attorney, or councilmember of the City of
Los Angeles.

“Days” means calendar days, not business days, and includes weekends and holidays.

“Disgorgement” means the ability of a participant to return an excess contribution.

“Excess contribution” means a contribution accepted by a participant in excess of the limits in
the applicable law.

“Participant” means any of the following:
        • An individual seeking or holding City or Board of Education office;
        • A City or Board of Education officeholder subject to a recall election;
        • A committee organized by an individual for the purpose of seeking City or Board of
            Education office;
        • An officeholder committee organized under Los Angeles Municipal Code § 49.7.12;


CEC Disgorgement Policy                         1 of 2                                     March 2010
         •         A committee organized by a City or Board of Education officeholder to respond to a
                   recall election; or
         •         A committee, other than a committee controlled by an individual seeking City or
                   Board of Education office, that supports or opposes a candidate for City or Board of
                   Education office.

“Sufficient documentation” means documents that show the return of an excess contribution,
including but not limited to written verification that a contribution was made, that the contribution
was deposited into the participant’s bank account, that the contribution was returned, that the
returned contribution cleared the participant’s bank account, and that matching funds related to
the contribution were returned.

                                                   Applicability

This version of the policy became effective on January 12, 2010.

1.     A participant who accepts an excess contribution will not be penalized for a violation of the
       applicable law for that contribution if two requirements are met:

       a. The participant does the following no later than 30 days after the date of the filing
          deadline for the statement in which the excess contribution must be disclosed:

             i.       Returns the excess contribution to the contributor; and

             ii.      Returns any public matching funds received as a result of the excess contribution
                      to the City of Los Angeles Public Matching Funds Trust Fund.*

       b. The participant maintains and provides to Commission staff sufficient documentation
          to substantiate that the necessary returns have been made.

2.     If an excess contribution is returned to the contributor but has not cleared the participant’s
       checking account within 30 days of the date the return was issued, the participant must
       submit a check for the same amount to the Commission for deposit into the City’s general
       fund. The check must be sent by certified mail within 45 days of the date the return was
       issued to the contributor and must be payable to the General Fund of the City of Los
       Angeles. It may be either a cashier’s check or a check drawn on the participant’s
       checking account.

3.     If an excess contribution is properly disgorged, the contributor will not be penalized for a
       violation of the applicable law for that contribution.

4.     Disgorgements will be identified in the Commission’s public audit reports for participants
       who make use of this policy.

                                                 Staff Discretion

The Commission staff determines whether this policy may be applied in cases in which the
applicability requirements are met. This policy does not apply if, in the judgment of the
Commission staff, extenuating circumstances exist. Extenuating circumstances include but are
not limited to a pattern of violating laws within the Commission’s jurisdiction; evidence of
intentional conduct; a participant’s enforcement history; a failure to cooperate during the audit or
investigation process; and the overall interests of justice.

*
 The return of public matching funds does not apply to candidates for Board of Education office, officeholder
committees, or committees that engage in non-candidate spending.

CEC Disgorgement Policy                                 2 of 2                                             March 2010

				
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