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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 06/21/2022 - FIRST READING OF ORDINANCE NO. 079, 2022, AMENDING Agenda Item 19 Item # 19 Page 1 AGENDA ITEM SUMMARY June 21, 2022 City Council STAFF Anissa Hollingshead, City Clerk Rita Knoll, Chief Deputy City Clerk Carrie Daggett, City Attorney SUBJECT First Reading of Ordinance No. 079, 2022, Amending Chapter 7 of the Code of the City of Fort Collins to Clarify, Revise and Strengthen Restrictions and Requirements for Campaign Finance in City Elections. EXECUTIVE SUMMARY The purpose of this item is to consider amendments to Chapter 7 of City Code related to clarifying, revising and strengthening restrictions and requirements for campaign finance in City elections. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION The Election Code Committee has considered shifts to campaign finance provisions in the City Code. The objectives the committee has identified in this work include ensuring a high level of transparency and timely reporting regarding campaign activities. An outline of the proposed amendments follows: 1. Require registration as a campaign committee (and compliance with all related requirements) by persons making total independent expenditures of $2,500 or more on an issue or for candidates; 2. Require registration as a campaign committee (and compliance with all related requirements) by persons who take steps in furtherance of an intent to accept contributions or contributions in kind to support or oppose any ballot issue or question, or to support or oppose one or more candidates; 3. Modify the threshold for reporting of independent expenditures to match with threshold for registration of a small-scale issue committee ($250) and modify threshold for conversion of a small-scale issue committee to the same threshold as triggers registration by those making independent expenditures ($2,500); 4. Clarify that various limits and reporting requirements include all contributions in kind as well as cash contributions; 5. Update definition of contributions in kind to clarify that a reasonable estimate of value based on market prices or other similar information is required; 6. Modify the definition of contribution to clarify that provision of professional services for which a fee would commonly be paid would be considered a contribution; 7. Modify the definition of contribution to make clear that providing a mailing list that is available for sale at no charge or reduced charge is a contribution, but to exclude from the definition of contribution mailing lists that have never been sold or offered for sale; Agenda Item 19 Item # 19 Page 2 8. Clarify language prohibiting committees from assisting or supporting each other; 9. Prohibit any person from knowingly receiving a campaign contribution prohibited by the Charter; 10. Update requirement for the campaign bank account; 11. Clarify references to time periods for reporting and retention of records; 12. Require that committee reports include cumulative totals as well as amounts for the particular reporting period; 13. Clarify the penalty for a violation of Code Section 7-133 about filing candidate affidavit and disclosure statement (penalty is disqualification); 14. Make certain contribution violations (Section 7-135(e), (i) or (j)) as criminal offenses rather than civil infractions; 15. Require that any election complaints filed under these provisions be posted on the City’s website; 16. Increase the time for curing a violation in response to a complaint from seven days to ten days; and 17. Various editing changes to improve clarity of existing provisions. CITY FINANCIAL IMPACTS These shifts overall decrease the threshold for required filings by campaign committees, likely increasing the rate of filings overall. In the last few years, several additional provisions relating to campaigns and campaign finance have been added to the Code, leading to an increase in workload to process and timely post reports. Additional staff capacity is needed to be able to effectively meet the demands of the Code. The number of reports required under City Code is significantly higher than what is required for jurisdictions following state law, to meet the objectives for transparency and timely reporting. This requires additional staff time, primarily focused during an election, all performed by the Clerk’s Office staff, none of whom perform election work as a primary function of their roles. PUBLIC OUTREACH Meetings of the Election Code Committee are posted on the City’s website in advance of each meeting date. This topic was discussed at several Election Code Committee meetings in 2021 and 2022 in preparation for these proposed changes. Several members of the community provided input at the meetings and via written comments about the changes. (Attachments 1-5) ATTACHMENTS 1. Election Code Committee Minutes, September 2021 (PDF) 2. Election Code Committee Minutes, March 7, 2022 (PDF) 3. Election Code Committee Minutes, March 21, 2022 (PDF) 4. Election Code Committee Minutes, May 9, 2022 (PDF) 5. Election Code Committee Minutes, May 31, 2022 (draft) (PDF) 6. Powerpoint Presentation (PDF) City of Fort Collins Page 1 September 20, 2021 ELECTION CODE COMMITTEE MEETING 12:00 PM COUNCILMEMBERS PRESENT: Arndt, Canonico, Ohlson STAFF PRESENT: Carrie Daggett, Tammi Pusheck, Rita Knoll CITIZENS PRESENT: None 1.CALL MEETING TO ORDER 2.PUBLIC COMMENT Robbie Moreland commented on two outstanding election complaints and suggested an independent election oversight committee should be formed. She suggested 18 months is a sufficient amount of time to implement ranked choice voting for the April 2023 election if it is app roved at the November of 2022 election. Jody Deschanes supported Ms. Moreland’s comments and addressed inaccurate comments about ranked choice voting. 3.CONSIDERATION AND APPROVAL OF THE AUGUST 27, 2021 COMMITTEE MEETING MINUTES Vice Chair Arndt made a motion, seconded by Councilmember Ohlson to approve the August 27, 2021 meeting minutes. The motion was adopted unanimously. 4.DISCUSSION ITEMS a.Campaign Finance Provisions Chief Deputy City Clerk Knoll asked about the scope of the review of campaign finance provisions and whether it is separate or in conjunction with considering reverting to the state law. Vice Chair Arndt asked about the main differences between the Colorado Fair Campaign Practices Act and the City Code. Knoll replied they were almost identical when Fort Collins wrote its Code with the exception of not addressing state candidates. She stated local provisions were written so they could all be contained in one document. Vice Chair Arndt stated candidates need more clear guidance on PACs as one example. City Attorney Daggett noted there are state, but not local, guidelines for independent expenditure committees. Councilmember Ohlson stated he would like to keep big money out of City elections, and if that is not possible, there should be as much disclosure as possible regarding who is contributing. b.Redistricting Chair Canonico noted redistricting must be complete by October 6, 2022 for the April 2023 election. Interim City Clerk Pusheck noted this process has already begun and funds have been budgeted for a consultant. Councilmember Ohlson asked about the role of the consultant stating he does not recall a consultant being used for redistricting in the past. He stated the earlier in the process the redistricting can occur, the better, as candidates are contemplating running for office earlier. Vice Chair Arndt concurred an earlier date for having district boundaries set would be beneficial. ATTACHMENT 1 City of Fort Collins Page 2 City Attorney Daggett stated this is the first time a consultant has been used as the last redistricting process took much longer than anticipated. She stated the consultant’s role will be to help prepare and present options for the best way to determine the cadence for redistricting. Chief Deputy City Clerk Knoll stated the consultant will be familiar with many different models used in the country. Vice Chair Arndt asked who sets precinct boundaries. Chief Deputy City Clerk Knoll replied the County sets those boundaries and the Code requires City precincts to match County precinct boundaries in order to obtain accurate voter data. Councilmember Ohlson commented on ensuring an incumbent is not redistricted out if his or her own seat. Chief Deputy City Clerk Knoll stated it may be difficult to have redistricting occur much earlier if census data is used. She also noted there will be a public outreach component to the consultant’s work. Vice Chair Arndt asked about the City’s residency requirements for candidates. Chief Deputy City Clerk Knoll replied candidates must have been a registered voter for one year and live in the district at the point of taking office. Chief Deputy City Clerk Knoll noted the consultant is to assist with different methodologies; however, if there is no desire to change that, a consultant may not be needed. City Attorney Daggett clarified a candidate must be residing w ithin the district at the time of nomination, not the time of election. Vice Chair Arndt noted state and federal congressional maps are based on population and that seems to be the metric that makes the most sense. Chair Canonico asked about the projected cost of the consultant. Chief Deputy City Clerk Knoll replied it was between $80,000 and $90,000. She stated staff can put together options based on population and the consultant may not be necessary if the methodology is not changing. Councilmember Ohlson questioned the need for the consultant, particularly at that cost. City Attorney Daggett noted the scope of work for a consultant has yet to be written. She stated the redistricting triggers per the Code will be outlined and may need to be adju sted. c. November Elections Chief Deputy City Clerk Knoll discussed time constraints and the timeline around moving elections to November. She noted there are currently no municipal elections in Larimer County in even years. She noted the topic is slated for a more detailed discussion at the next meeting. Councilmember Ohlson stated there is no reason to change to a coordinated election in odd years and expressed support for coordinated even year elections beginning in 2024. Chair Canonico asked if there would be anything that would prevent the extension of Council terms should an April 2023 election not occur. City Attorney Daggett replied that would need to be a topic of discussion for the Committee. She stated having the April 2023 election to fill terms could be a possibility and stated the various aspects of the timing could be built into the ballot issue approving any change to a coordinated election. Vice Chair Arndt and Councilmember Ohlson commented on the benefits of having more voters per election which may result from changing to coordinated elections. City of Fort Collins Page 3 d. Ranked Choice Voting Chief Deputy City Clerk Knoll stated the earliest ballot on which this item could appear would be November 2022 and the earliest it could be implemented, should voters also approve a switch to November elections, would be November of 2023. She noted the use of ranked choice voting could only occur if the County uses a system certified by the Secretary of State for use in a ranked choice voting election. She noted the November 2022 election would not be certified until about three months after preparations for the April 2023 election would occur. Councilmember Ohlson stated he would need to see some proof that implementation could not occur by the April 2023 election and stated the consultant funding could be used to hire additional staff if necessary. Chief Deputy City Clerk Knoll noted candidate guidelines include elec tion information and there would be differences based on which type of election is run, including different certification dates and potentially different vendors. Committee members and staff discussed certification dates and swearing in dates. City Att orney Daggett noted a specific swearing in date could be set, but it would need to be far enough out to allow for recounts. Chair Arndt opposed the last timeline for swearing in and the immediately following retreat to determine Council priorities. Councilmember Ohlson stated the Committee needs to know what resources are needed in order to implement ranked choice voting for the April 2023 election, if approved in November of 2022. e. Public Financing of Elections Interim City Clerk Pusheck stated interns are working on collecting data from peer cities and will be returning with information during the first quarter of 2022. f. Election Oversight Board Interim City Clerk Pusheck stated interns are working on collecting data from peer cities and will be returning with information during the first quarter of 2022. g. Partisan/Non-partisan Elections City Attorney Daggett asked if the Committee views this as an immediate issue or more of a long - term topic. Councilmember Ohlson stated he has preferred non-partisan elections; however, he believes those have not occurred in practice in years, therefore, he would rather see partisan elections. He suggested the topic could still be placed on the same ballot with other questions. City Attorney Daggett noted the main change with a partisan election involves the establishment of political parties to determine who candidates on the ballot would be. Chair Canonico supported prioritizing ranked choice voting and November elections over changing to partisan elections. Councilmember Ohlson agreed with prioritizing those; however, he suggested they could potentially all move forward simultaneously. City Attorney Daggett requested a prioritization of the seven items. Councilmember Ohlson noted redistricting has to be done. Vice Chair Arndt stated she would like to have that done by April. Councilmember Ohlson suggested the next priority should be campaign financing improvements, followed by November elections and ranked choice voting. City Attorney Daggett noted the budgeting process will be starting again in March and April and having some direction on public election financing could be beneficial at that time. City of Fort Collins Page 4 Councilmember Ohlson suggested public financing and the election oversight committee would be the next priorities. 5. OTHER BUSINESS 6. ADJOURNMENT The meeting adjourned by unanimous consent at 1:26 PM. City of Fort Collins Page 1 March 7, 2022 ELECTION CODE COMMITTEE MEETING 12:00 PM COUNCILMEMBERS PRESENT: Arndt, Canonico, Ohlson STAFF PRESENT: Rita Knoll, Ryan Malarky, Tammi Pusheck, Carrie Daggett, Anissa Hollingshead CITIZENS PRESENT: Robbie Moreland, Jan Kok, Eric Fried, Kathleen Schmidt, Sonya Ketting, Nick Armstrong, Michelle Haefele 1.CALL MEETING TO ORDER 2.ROLL CALL 3.PUBLIC COMMENT Robbie Moreland encouraged the Committee to refer ranked choice voting to the ballot. Jan Kok supported replacing the current plurality voting system with an improved system, approval voting. He discussed the system which involves utilizing the current type of ballot while allowing voters to vote for as many candidates as they would like. He stated Fargo, North Dakota and Saint Louis, Missouri have adopted the system. Eric Fried supported ranked choice voting and opposed plurality voting. He noted Maine, Alaska, and New York City use ranked choice voting. Kathleen Schmidt discussed the disadvantages of plurality voting and the advantages of ranked choice voting. Sonya Ketting expressed support for ranked choice voting. Nick Armstrong expressed support for ranked choice voting. Michelle Haefele expressed support for ranked choice voting. 4.PUBLIC COMMENT FOLLOW-UP Mayor Arndt thanked Mr. Fried for discussing a new voting system. Members thanked the speakers. 5.ELECTION TIMING AND ADMINISTRATIVE OPTIONS DISCUSSION Mayor Arndt commented on the possibility of prioritizing changes, such as referring ranked choice voting to the ballot first then considering changing elections to November. Chair Canonico noted considering changing the election to November was a priori ty for the Committee; however, ranked choice voting was not. Councilmember Ohlson stated his first priority is campaign finance reform and he believes all changes could be made at the same time. He stated he could support odd year November elections over even year. He also stated if ranked choice voting is approved by voters in November, it would not necessarily need to be implemented in an April 2023 election. He expressed personal support for ranked choice voting and supported placing both items on the November ballot. Mayor Arndt stated her first preference is also to put both items on the November ballot. Members discussed wording for dealing with the possibility that ranked choice voting passes and moving to November elections does not. ATTACHMENT 2 City of Fort Collins Page 2 Chair Canonico asked when counties will be required to be prepared to hold ranked choice elections. City Clerk Hollingshead replied the Secretary of State is recommending counties be prepared by November of 2023; however, there is some discretionary language involved. Chief Deputy City Clerk Knoll noted the issue is whether Larimer County will have the equipment that is ultimately certified by the Secretary of State. If it does not have that equipment, it is not required to replace equipment per the legislation related to ranked choice voting. Chair Canonico asked if the City could be ready to do a ranked choice election in April of 2023 should the ballot initiative to move the elections to November fail. City Clerk Hollingshead replied the most challenging aspect would be dealing with contingencies through election day. City Attorney Daggett stated there would still be an option to h ave a local April 2023 election even if voters approve the change to November elections. Mayor Arndt stated that would be difficult for the electorate. City Attorney Daggett noted the work session agenda materials will go to print prior to the next Committee meeting. Members discussed the topics to be included in the work session materials. Councilmember Ohlson commented on his desire for all donors to any type of committee to be made public. Members discussed concerns with donors being required to provide addresses which become public information. City Attorney Daggett discussed independent expenditures and requirements for small scale issue committees, which are consistent with state law. She suggested changing the requirements for small scale issue committees to be such that they would automatically switch to a full committee with regular reporting requirements after reaching a certain threshold for independent expenditures. Councilmember Ohlson stated he wants to see as much transparency and disclosure as possible. City Attorney Daggett noted anyone who is receiving contributions for a political activity must register as a committee. Any type of existing group, such as the Sierra Club for example, that happens to be spending money in a City election is currently not required to disclose where the money came from ; therefore, addressing independent expenditures is likely the best way to ens ure additional transparency in those types of situations. 6. PROPOSED TIMELINE City Clerk Hollingshead noted the next Committee meeting will be the day prior to the work session and stated future meetings will focus more on campaign finance as well as redistricting. Councilmember Ohlson asked about the scale of change in the Counc il districts that will result from the redistricting. Chief Deputy City Clerk Knoll suggested an entire reconfiguration of the districts could be a possibility. She asked members to discuss whether that would be acceptable, or whether they would prefer to keep the current district layout with additional balance. She noted the districts need to be as balanced as possible population-wise, among other requirements in the Charter. 7. OTHER BUSINESS 8. ADJOURNMENT The meeting adjourned by unanimous consent at 1:18 PM City of Fort Collins Page 1 March 21, 2022 ELECTION CODE COMMITTEE MEETING 12:00 PM COUNCILMEMBERS PRESENT: Arndt, Canonico, Ohlson STAFF PRESENT: Kyle Stannert, Rita Knoll, Ryan Malarky, Tammi Pusheck, Carrie Daggett, Anissa Hollingshead CITIZENS PRESENT: Robbie Moreland, Jody DesChenes 1.CALL MEETING TO ORDER 2. ROLL CALL 3. PUBLIC COMMENT Robbie Moreland spoke about regulation of independent expenditures and requested that the threshold for requiring registration for independent expenditures be set at $1,000 rather than $5,000. She also posed the question of whether there is a need to have both political committees and independent expenditure committees. Jody Deschenes expressed support for Robbie’s comments. 4.PUBLIC COMMENT FOLLOW-UP City Attorney Daggett stated, at the state level, there are political committees that are allowed to coordinate with candidates, and there are independent expenditure committees which are required to be independent. The City has political committees and issues committees, neither of which can coordinate with candidates, and independent expenditures which are reported but not required to register as committees and file reports; however, any entity formed in order to participate in an election or who are receiving contributions must register as a committee under the current requirements. She stated the independent expenditure relates to entities that are spending their own money and which were perhaps formed for another purpose and happen to be participating in an election. Those entities are technically not supposed to be receiving contributions for election purposes. City Attorney Daggett discussed the current independent expenditure thresholds and stated a suggestion was made to set an amount which would trigger the requirement for the entity to register as a committee. Councilmember Ohlson stated campaign finance reform is his main priority; however, he does not yet have enough information to respond to the three suggestions made during public input. He stated he would like to keep discussing the issue moving forward. Mayor Arndt concurred. 5.CONSIDERATION AND APPROVAL OF THE FEBRUARY 28 AND MARCH 7, 2022, COMMITTEE MEETING MINUTES Councilmember Ohlson made a motion, seconded by Mayor Arndt, to approve the minutes of the February 28 and March 7, 2022, committee meetings. The motion was adopted unanimously. 6.REVIEW OF POTENTIAL BALLOT QUESTIONS BEING PRESENTED AT THE MARCH 22, 2022, WORK SESSION City Clerk Hollingshead presented information related to election preparation for a coordinated election in November, a possible April 2023 election, and possible ranked choice voting implementation. She stated the information planned to be discussed at the work session is all related to previous committee discussions. ATTACHMENT 3 City of Fort Collins Page 2 City Attorney Daggett noted a variety of City Code changes would be required to implement ranked choice voting should it be approved by voters. Councilmember Ohlson stated other Council members should be made aware the committee has agreed to recommend November elections, to place ranked choice voting on the ballot, though it has yet to be determined if that would take effect in April. Mayor Arndt agreed summarizing the committees work is important for the work session. Chair Canonico also requested the trade-offs with various options are outlined. 7. REVIEW OF POTENTIAL CAMPAIGN FINANCE CODE AMENDMENTS Chief Deputy City Clerk Knoll presented a list of potential campaign finance code amendments which have either been discussed by the committee or noticed as possibly beneficial changes during previous elections. City Attorney Daggett suggested the committee may want to consider some type of amendment related to campaign contributions from entities that may be seeking a contract with the City as the current regulation states an entity cannot make those contributions but does not prohibit a candidate from taking those contributions. Mayor Arndt questioned whether a new candidate for Council would know whether or not to accept a given contribution; she stated the standard of knowledge is too high given the low contribution limits in Fort Collins. She stated the only thing she would support would be a fine no greater than the contribution amount. City Attorney Daggett suggested a solution would be to require a candidate to return a contribution once they are made aware of a potential conflict. Mayor Arndt and Chair Canonico questioned how far past an election this would apply and Mayor Arndt stated she believes the regulation would be too ambiguous. Councilmember Ohlson concurred and suggested the best approach could be just to require a candidate to return a contribution with no associated penalty. Mayor Arndt concurred. Chief Deputy City Clerk Knoll discussed other possible election related Code amendments, including the possibility of eliminating write-in candidates or changing the deadline for write-in candidates. Mayor Arndt supported leaving them in but changing deadlines to better work for the timeline. Chief Deputy City Clerk Knoll outlined additional suggested Code amendments. Members discussed the order of ballot issues and Councilmember Ohlson suggested citizen-initiated items should be placed above City-initiated items. Chief Deputy City Clerk Knoll outlined additional Code amendments that may be beneficial. Councilmember Ohlson commended the history of the City Clerk’s Office handling of elections. Mayor Arndt and Chair Canonico concurred. 8. PROPOSED TIMELINE 9. OTHER BUSINESS 10. ADJOURNMENT The meeting adjourned by unanimous consent at 1:05 PM MINUTES APPROVED AT THE APRIL 18, 2022 ELECTION CODE COMMITTEE MEETING City of Fort Collins Page 1 May 9, 2022 ELECTION CODE COMMITTEE MEETING 12:00 PM COUNCILMEMBERS PRESENT: Canonico, Ohlson, Francis STAFF PRESENT: Marcus Bodig, Rita Knoll, Ryan Malarky, Tammi Pusheck, Carrie Daggett, Anissa Hollingshead, Kelly DiMartino CITIZENS PRESENT: Martha Coleman, Sarah Tar, William Russell, Nick Armstrong, Marge Norskog, Robbie Moreland 1.CALL MEETING TO ORDER 2. ROLL CALL 3. PUBLIC COMMENT Martha Coleman discussed using Census data throughout her career as a geographer, including to assist with state redistricting. She presented a map option for City redistricting that would keep the current districts similarly shaped with the fewest boundary changes possible and a maximum deviation of 8.4%, which is within the 10% threshold. Additionally, she stated the map keeps Councilmembers within their districts, does not create unnecessary changes, and primarily maintains County precincts. Sarah Tar expressed support for referring ranked choice voting to the ballot and commented on the success of the public outreach campaign related to the topic. William Russell expressed support for keeping the City’s district boundaries as close to the current boundaries as possible. Nick Armstrong expressed support for option two presented by staff for redistricting. He also commented on needed infrastructure in the northeast part of town and expressed support for ranked choice voting. Marge Norskog commented on the proposed redistricting options expressing concern about possibly dividing her neighborhood which has four distinct boundaries and should be represented by one Councilmember. Robbie Moreland expressed support for the draft ranked choice voting ballot language as well as for the campaign finance Code changes. She thanked the Committee for its work on the issues. 4.PUBLIC COMMENT FOLLOW-UP City Attorney Daggett noted there are different redistricting, or reapportionment, processes at the state level and at other levels; the City’s process is driven mainly by the Charter with some constitutional principles that have been applied. She noted the standard that is most critical for this process is what is laid out in the Charter and requires six contiguous, reasonably compact districts, each of which shall consist of contiguous, undivided general election precincts, and, to the extent reasonably possible, an equal number of inhabitants. She noted it will therefore be important to ensure contiguity and compactness when considering redistricting in the city. Chair Canonico asked if there is anything problematic with Ms. Coleman’s suggested option. City Attorney Daggett replied it should be considered whether the contiguity and compactness are compromised and whether the 8.4% deviation is acceptable when other options have a much smaller level of deviation. Chair Canonico clarified the staff option two has a 9% deviation and option one has 5.19%. ATTACHMENT 4 City of Fort Collins Page 2 Councilmember Ohlson stated Ms. Coleman’s option three seems to be a better option as it is not as dramatic a shift from the historic precedent. He commented on the fact that some of the districts will naturally be more compact than others. Mayor Pro Tem Francis expressed concern about the dramatic changes contemplated in the two staff- proposed options. She encouraged additional analysis by staff of the option presented by Ms. Coleman. Marcus Bodig, GIS Manager, replied staff has already determined the option to be viable and accurate. Chair Canonico concurred the two staff-proposed options were concerning in the changes they proposed and stated option three achieves the requirements of the Charter. City Attorney Daggett suggested staff and the Committee may want to take a bit more time to examine the third option. She also suggested moving the next Committee meeting up to allow for one more prior to the June 21st Council meeting, the agenda for which includes this item and other election-related items. 5. CONSIDERATION AND APPROVAL OF THE APRIL 18, 2022 COMMITTEE MEETING MINUTES Councilmember Ohlson made a motion, seconded by Chair Canonico, to approve the minutes of the April 18, 2022 Committee meeting. The motion was adopted unanimously. 6. PRESENTATION OF REDISTRICTING OPTIONS AND POSSIBLE RECOMMENDATION (**Secretary’s Note: This topic was discussed as part of Public Comment and Follow-up.) 7. REVIEW OF POTENTIAL BALLOT QUESTIONS City Clerk Hollingshead presented proposed ballot question language and potential Charter language changes. Councilmember Ohlson supported the language provided for both the ranked choice voting and November elections ballot questions. Chief Deputy City Clerk Knoll asked if there is a preference for the order of the questions on the ballot, which is how they should be presented in the agenda materials for the full Council. City Attorney Daggett noted the language was developed to ensure the passage of either or both items would not create issues. Mr. Armstrong suggested the City create some type of educational video or FAQ page describing the difference between the current election system and the election system that would exist with ranked choice voting and November elections. 8. REVIEW OF POTENTIAL CAMPAIGN FINANCE CODE AMENDMENTS City Attorney Daggett noted the yellow highlighted items represent substantive changes from the previous discussion and she outlined those changes. Members and staff discussed mailing list purchasing and in-kind donations of services provided versus volunteering. Mr. Armstrong suggested individuals who are asked to do something they otherwise do professionally should be required to report the service as an in-kind donation. Councilmember Ohlson expressed support for a $75 limit for an in-kind donation. Mayor Pro Tem Francis noted not everyone has the ability to contribute $75 but can contribute skills or time, and limiting that value to $75 could have unintended consequences for candidates who may not have a network of individuals who can donate cash. City of Fort Collins Page 3 City Attorney Daggett stated staff could return with language options and stated there may be some value in distinguishing between contributions of work from more formal, organized providers and from a person who may have certain skills in an area. Members agreed to further discuss the in-kind donation topic. City Attorney Daggett outlined additional potential campaign finance code amendments including reporting threshold changes and language relating to political committees. Chair Canonico commented specifically on billboard costs and some candidates reporting those as $75 in-kind donations. Mr. Armstrong commented on campaigns relying on vendors to detail costs rather than putting the onus on candidates to determine the value of certain in-kind contributions. Chair Canonico stated there should be some responsibility on the part of the candidate to look into what other candidates were charged for the same item. Councilmember Ohlson commented on his desire to ensure transparency in in-kind contributions. City Attorney Daggett stated there may be a way to guide candidates to carefully examine in-kind contributions that are likely to be worth more than $75. City Attorney Daggett outlined possible changes to election infractions and the use of committee funds to pay penalties. Members agreed to further discuss certain issues. Staff committed to working to find an earlier date for the next meeting. 9. PROPOSED TIMELINE No discussion. 10. OTHER BUSINESS None. 11. ADJOURNMENT The meeting adjourned by unanimous consent at 1:36 PM MINUTES APPROVED AT THE MAY 31, 2022 ELECTION CODE COMMITTEE MEETING City of Fort Collins Page 1 May 31, 2022 ELECTION CODE COMMITTEE MEETING 10:00 AM COMMITTEE MEMBERS PRESENT: Canonico, Arndt, Ohlson OTHER COUNCILMEMBERS PRESENT: Gutowsky, Francis, Peel STAFF PRESENT: Marcus Bodig, Rita Knoll, Ryan Malarky, Tammi Pusheck, Carrie Daggett, Anissa Hollingshead 1.CALL MEETING TO ORDER 2.ROLL CALL 3.PUBLIC COMMENT None. 4.PUBLIC COMMENT FOLLOW-UP None. 5.CONSIDERATION AND APPROVAL OF THE MAY 9, 2022 COMMITTEE MEETING MINUTES Councilmember Canonico made a motion, seconded by Mayor Arndt, to approve the May 9, 2022 meeting minutes. The motion was adopted unanimously. (**Secretary’s Note: Councilmember Ohlson arrived at this point in the meeting.) 6.PRESENTATION OF REDISTRICTING OPTIONS AND POSSIBLE RECOMMENDATION City Clerk Hollingshead outlined the history of the four options for redistricting and stated, based on the previous meeting’s discussion, staff has presented what was then option three developed by a resident, and a new option four which makes a slight change to option three. She stated there have been some recent issues with population counts due to the County’s precincts not adhering to census block groups. Marcus Bodig, GIS, further detailed the population count issue. Mayor Arndt asked how big of an issue has been created. Bodig replied there are 10 to 20 instances of block groups being cut out of perhaps 500 or so. Councilmember Ohlson asked why the City and County Clerk’s Offices do not coordinate on these issues. City Clerk Hollingshead replied the two redistricting processes are independent as the County must ensure it is adhering to state statute. It does not take into account the City’s process with redistricting or elections in general as the County is governed by the Uniform Election Code and the City is governed by the Municipal Election Code. Councilmember Ohlson asked about the practical impact of the population count issues on the redistricting options. City Attorney Daggett replied work has yet to be completed; however, staff is attempting to focus in on the lines between the districts to determine where the precinct lines cut across census blocks and look at what can be done to try to approximate. Councilmember Ohlson asked if staff is requesting additional time rather than a formal recommendation. City Attorney Daggett replied in the affirmative and stated staff has yet to determine whether there will need to be changes, but would like to do those additional checks. Chief Deputy City Clerk Knoll noted options three and four have been renumbered to one and two and reiterated the only difference between the two is a slight change to one precinct. City Attorney Daggett ATTACHMENT 5 City of Fort Collins Page 2 discussed the population of that precinct, 362. Bodig noted it does not take much of a population change to affect the deviation. Councilmember Gutowsky asked about the main reasons the original options one and two were not deemed acceptable. Chair Canonico replied the resident’s proposed option three provided the greatest continuity with the current districts and met all the necessary criteria. It was noted the ultimate decision will be up to the full Council. Councilmember Gutowsky stated she would like the original options one and two to still be considered and noted a large piece of Old Town that was once in her district is now gone with the resident’s proposed map. Councilmember Peel also stated she would like all of the options to remain for consideration. Mayor Arndt suggested going back to the original options one through four to eliminate confusion. 7. REVIEW OF POTENTIAL CHARTER AMENDMENT BALLOT QUESTIONS City Attorney Daggett outlined the changes made since the last discussion of this item and asked if the Committee wants to make a formal recommendation. Members discussed the ballot question language. Mayor Arndt asked the City Clerk her opinion on whether the election becomes coordinated and if ranked choice voting passes. City Clerk Hollingshead replied Fort Collins seems to place a great deal of value on flexibility and autonomy and holding municipal elections would allow for more autonomy, such as paying for postage on return ballots. She stated there are areas for making a meaningful impact on voter turnout that might accomplish some of the goals that are being sought from switching to November coordinated elections. She commented on ways to increase voter turnout. Members discussed the impact of holding municipal elections in November, but not having them be coordinated with the county. Councilmember Ohlson stated he does not like the idea of voters receiving two ballots in November at this time. Members concurred they would support the amended charter ballot language related to November coordinated elections and ranked choice voting. 8. REVIEW OF POTENTIAL CAMPAIGN FINANCE CODE AMENDMENTS City Attorney Daggett commented on the updates that have been made based on the discussion at the last Committee meeting. She requested input from members regarding mailing lists and how they are treated in terms of contributions. Councilmember Ohlson stated he does not believe purchased mailing lists should be able to be given to other candidates; however, the sharing of personally developed mailing lists is not a concern. Other members agreed and requested staff prepare some language related to the topic. Members discussed contributions in kind and how contributions of services such as web design should be addressed. Councilmember Ohlson expressed concern about the number of hours certain professionals could contribute to a campaign that would greatly exceed $75. City Attorney Daggett stated staff would work on additional language to address the provision of services. She discussed the changes made to language regarding not allowing committee funds to be used to pay penalties. Councilmember Ohlson commented on the effectiveness of this committee but stated he did not want all of the work done to not mean anything. He stated he believes there should be consequences for non-compliance and stated he would support penalties not being allowed to be paid from committee funds. City of Fort Collins Page 3 City Attorney Daggett noted there is an escalation factor for fines, and multiple offenses eventually result in a criminal offense. If someone is convicted, they are disqualified from serving. She stated the list of offenses and associated penalties was placed in the Code in 2020 because the Committee at that time wanted to create a predictable process. She noted this Committee could recommend changes to the dollar amounts associated with the violations and noted there are still some items that are criminal offenses. Councilmember Ohlson opposed a minor fine penalty for blatant violations. Chair Canonico stated she would like there to be room for errors to be made without it being a fatal flaw for candidates. City Attorney Daggett noted the process that was put in place in 2020 calls for the Clerk to provide notice of a complaint and for the candidate to have 7 days to correct. If corrected, the issue is resolved. Additionally, she stated there is a provision that makes criminal knowingly violating the disclosure and filing report with intent to fraudulently misrepresent campaign contributions or expenditures on a disclosure report. Members requested staff prepare language regarding the topic. Chair Canonico asked about penalties at the state level. Chief Deputy City Clerk Knoll replied the state has a daily penalty and there are municipalities with daily penalties; however, those are difficult to enforce. Councilmember Ohlson commented on the biggest violation he sees being related to monies not being reported within the first three days of having committed the funds at the end of campaigns. He requested staff work on language to tighten the issue of committing funds versus spending funds. Other members agreed. Members commented on campaign finance reports not being cumulative for total amounts raised and total amounts spent. City Attorney Daggett noted staffing resources have made review of each campaign finance report difficult and have led to public review being the primary source of complaints. 9. REVIEW OF TIMELINE FOR PRIORITIES Chief Deputy City Clerk Knoll stated the redistricting ordinance will hopefully by heard by the full Council at the two July meetings after an additional Committee meeting. 10. OTHER BUSINESS 11. ADJOURNMENT The meeting adjourned by unanimous consent at 11:50 AM Campaign Finance Amendments 06-21-2022 Anissa Hollingshead City Clerk Rita Knoll Chief Deputy Clerk ATTACHMENT 6 2How Municipal Elections are Governed in Fort Collins Fort Collins Code of Ordinances Chapter 7 Elections, Article V Campaigns •Article V prescribes provisions for campaigns and campaign finance provisions to be followed by municipal candidates in Fort Collins Amendments to Campaign Finance Provisions Recent Amendments Developed through Election Code Committee: •Ordinance No. 021, 2016 •Ordinance No. 005, 2017 •Ordinance No. 045, 2018 •Ordinance No. 077, 2018 •Ordinance No. 113, 2018 •Ordinance No. 109, 2020 •Ordinance No. 112, 2020 3 Primary Driver of amending these provisions = increasing transparency and timeliness of reporting campaign activity Summary of Changes Increasing requirements to register as a campaign committee •Persons making independent expenditures of $2,500 or more must register as a campaign committee •Persons who take actions in furtherance of an intent to accept contributions or make expenditures to support or oppose any ballot issue or question or one or more candidates must register as a campaign committee Thresholds for reporting independent expenditures and converting a small-scale issues committee to a full committee registration •Modify threshold for reporting independent expenditures to match threshold for registration of small-scale issue committees ($250) •Modify threshold for conversion of small-scale issue committee to the same threshold as triggers registration by those making independent expenditures ($2,500) 4 This Photo by Unknown Author is licensed under CC BY-SA 5Summaryof Changes Clarifying how campaign restrictions and requirements apply to contributions in kind •Va rious limits and reporting requirements include all contributions in-kind as well as cash contributions •Updating definition of contributions in kind to clarify a reasonable estimate of value based on market prices or other similar information is required •Modifying definition of contribution to 1) clarify the provision of professional services for which a fee would commonly be paid is a contribution and 2) make clear providing a mailing list available for sale at no charge or reduced charge is a contribution but excluding mailing lists that have never been sold or offered for sale Making changes relating to violations and complaints •Prohibiting knowingly receiving a contribution prohibited by the Charter •Requiring election complaints that are filed to be posted on the City’s website •Increasing the time allowed for curing a violation in response to a complaint from 7 to 10 days 6Summaryof Changes Penalties •Clarifying the penalty for a violation of Code Section 7-133 about filing candidate affidavit and disclosure statements is disqualification •Making certain contribution violations (in Section 7-135(e), (i) or (j)) as criminal offenses rather than civil infractions Other changes •Clarifying language prohibiting committees from assisting or supporting each other •Clarifying references to time periods for reporting and retention of records •Requiring committee reports include cumulative totals as well as amounts for the particular reporting period •Va rious editing changes to improve clarity of existing provisions For Questions or Comments, Please Contact: THANK YOU! Anissa Hollingshead, City Clerk ahollingshead@fcgov.com 970-416-2995 -1- ORDINANCE NO. 079, 2022 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 7 OF THE CODE OF THE CITY OF FORT COLLINS TO CLARIFY, REVISE AND STRENGTHEN RESTRICTIONS AND REQUIREMENTS FOR CAMPAIGN FINANCE IN CITY ELECTIONS WHEREAS, Chapter 7 of the City Code sets out procedures and requirements for redistricting of Council districts, for the conduct of City elections, for disclosure of campaign finance information, and other related matters; and WHEREAS, in 2015 the City Council formed an ad hoc committee to review, discuss and recommend the most beneficial changes to the Code and City Charter regarding elections and other related matters; and WHEREAS, in January 2017, Council made the ad hoc Committee a standing committee of Council for the purpose of identifying and evaluating ideas for improvements to City election laws and practices and anticipating adjustments that may be needed to adapt to a changing legal and technological environment, for Council consideration; and WHEREAS, as a result of the Committee’s work (as both an ad hoc committee and a standing committee), Ordinance No. 021, 2016, Ordinance No. 005, 2017, Ordinance No. 045, 2018, Ordinance No. 077, 2018, and Ordinance No. 113, 2018, Ordinance No. 109, 2020, and Ordinance No. 112, 2020, were considered and adopted by the Council to update various provisions of Chapter 7; and WHEREAS, the Committee has continued to meet and has recommended additional clarifications and amendments to Chapter 7 requiring that persons making independent expenditures of $2,500 or more, and persons who take actions in furtherance of an intent to accept contributions or make expenditures, register as a campaign committee; and WHEREAS, the Committee has also recommended amendments updating the thresholds for reporting independent expenditures and for converting a small-scale issues committee to a full committee registration; and WHEREAS, the Committee has recommended clarification of how the campaign restrictions and requirements apply to contributions in kind and has recommended modifications to the definitions of contribution and contribution in kind; and WHEREAS, in addition, the Committee has recommended that any person be prohibited from knowingly receiving a contribution prohibited by the Charter, that any election complaints filed under these provisions be posted on the City’s website, and that the time for curing a violation in response to a complaint be increased from seven days to ten days; and WHEREAS, these amendments generally improve and clarify the City’s campaign finance disclosure and election requirements and processes; and -2- WHEREAS, these amendments further the City’s and the public’s interest in shedding light for the public on the expenditure of money to influence the outcome of City elections, while respecting the speaker’s interest in freedom of political speech; and WHEREAS, the Council desires to enact the recommendations of the Committee and staff to clarify and improve the various provisions of Chapter 7, as set forth below. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That Section 7-132 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 7-132. Definitions. The following words, terms and phrases, when used in this Article, shall have the meanings ascribed to them in this Section: . . . Contribution shall mean: . . . (4) With regard to a contribution for which the contributor receives compensation or consideration of less than equivalent value to such contribution, including, but not limited to, items of perishable or nonpermanent value, goods, supplies, services or participation in a campaign-related event, mailing lists and other similar items of value, thean amount equal to the value in excess of the amount of such compensation or consideration as reasonably determined by the candidate committee, issue committee or political committee based on market prices or other similar information. Contribution shall not include: (1) Services provided without compensation by an individuals volunteering their time on behalf of a candidate, candidate committee, political committee, issue committee or small-scale issue committee, unless such individual is providing professional services for which a fee would commonly be paid; (2) Mailing lists that have never been sold or offered for sale; (3) Funds collected subsequent to the election to pay the cost of a requested recount pursuant to 7-46. . . . Contribution in kind shall not include an endorsement of a candidate or an issue by any person and shall not include the payment of compensation for legal and accounting services rendered to -3- a candidate, candidate committee, political committee, issue committee or small-scale issue committee if the person paying for the services is the regular employer of the individual rendering the services and the services are solely for the purpose of ensuring compliance with the provisions of this Article. . . . Independent expenditure shall mean the payment of money by any person for the purpose of advocating the election, defeat or recall of a candidate, which expenditure is not controlled by, or coordinated with, any candidate or any agent of such candidate. Independent expenditure shall include expenditures for political messages which unambiguously refer to any specific public office or candidate for such office. Independent expenditure shall also include the payment of money by any person for supporting or opposing a ballot issue or ballot question that is not controlled by, or coordinated with, an issue committee or a small-scale issue committee. Independent expenditure shall include, but not be limited to, advertisements placed for a fee on another person's website or advertisement space provided for no fee or a reduced fee where a fee ordinarily would have been charged. . . . Issue committee shall mean: (1) Two (2) or more persons who are elected, appointed or chosen, or have associated themselves, for the purpose of and that take steps in furtherance of an intent to accepting contributions or contributions in kind, or makeing expenditures, to support or oppose any ballot issue or ballot question; or (2) Any person that has takes steps in furtherance of an intent to accepted contributions or contributions in kind for the purpose of supporting or opposing any ballot issue or ballot question; or (3) Any person or associated persons upon making independent expenditures of two thousand five hundred dollars ($2,500) or more for the purpose of supporting or opposing any ballot issue or ballot question. . . . Political committee shall mean: (1) Two (2) or more persons who are elected, appointed or chosen, or have associated themselves, for the purpose ofand that take steps in furtherance of an intent to accepting contributions, or contributions in kind, or makeing expenditures to support or oppose one (1) or more candidates; or. (2) Any person that takes steps in furtherance of an intent to has accepted contributions or contributions in kind for the purpose of supporting or opposing one (1) or more candidates; or (3) Any person or associated persons upon making independent expenditures of two thousand five hundred dollars ($2,500) or more for the purpose of supporting or opposing one (1) or more candidates. . . . -4- Small-scale issue committee means a committee otherwise meeting the definition of issue committee that has accepted or made contributions, contributions in kind or expenditures in an amount that does not exceed two thousand five thousandhundred dollars ($5,02,500.) during an applicable election cycle for the major purpose of supporting or opposing any ballot issue or ballot question. The following are each treated as a single small-scale issue committees: a. All small-scale issue committees that supports or opposes a common ballot measure if the committees is are established, financed, or controlled by a single corporation or its subsidiaries; b. All small-scale issue committees that supports or opposes a common ballot measure if the committees isare established, financed, maintained, or controlled by a single labor organization or the affiliated local units it directs; and c. All small-scale issue committees that supports or opposes a common ballot measure if the committees isare established, financed, maintained, or controlled by substantially the same person, group of persons, or other organizations. . . . Section 3. That Section 7-134 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 7-134. Registration of committees; termination. (a) All candidate committees, political committees and issue committees shall register with the City Clerk before accepting any contributions or contributions in kind or making any expenditures. Registration must be on a form provided by the City Clerk and must include the following, together with any other information required to complete the registration form. . . . (7) The name and address of the financial institution in which all contributions received by the committee are deposited in a separate account bearing, in the case of a candidate committee, the name of the committeecandidate, or in the case of a political or issue committee, the name of the person authorized to act as the registered agent for the committee, and documentation of such account reasonably satisfactory to the City Clerk; and . . . Section 4. That Section 7-135 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 7-135. Campaign contributions/expenditures. (a) Limits. (1) No person may make contributions and/or contributions in kind totaling more than one hundred dollars ($100.) to the candidate committee of any candidate for the office of Mayor. No person may make contributions and/or contributions in kind totaling more -5- than seventy-five dollars ($75.) to the candidate committee of any candidate for the office of Councilmember. These limitations shall apply to all contributions or contributions in kind, whether made directly to a candidate committee or indirectly via earmarked gifts passed through an intermediary, except that these limitations shall not apply to: . . . d. Contributions made to a candidate committee by another candidate committee established by the same individual as a candidate for the office of Mayor or Councilmember. . . . (c) Joint contributions. No person shall make a contribution jointly with another person through the issuance of a check drawn on a jointly owned account unless: (i) the total amount of the joint contribution is less than the maximum amount that can be contributed by one (1) person under the contribution limits established in Subsection (a) of this Section or (ii) the check is signed by all owners of the account, in which event the amount of the total contribution shall be allocated equally among all such persons unless a different allocation is specified on the face of the check. No candidate committee shall knowi ngly accept a contribution made in violation of this Subsection (bc). (d) Contributions in excess of limits. No later than ten (10) business days after receiving a contribution or contribution in kind in excess of the limits set forth in this Section, the candidate committee that received the contribution shall remit the excess to the contributor or pay to the contributor the value of the contribution in kind. (e) No candidate committee, issue committee, small-scale issue committee or political committee shall knowingly accept contributions or contributions in kind from any person who is not a citizen of the United States, from a foreign government or from any foreign corporation that does not have authority to transact business in this State pursuant to A rticle 115 of Title 7, C.R.S., or who is prohibited from contributing pursuant to the Charter of the City of Fort Collins or this Article. (f) No issue committee, small-scale issue committee or political committee shall make a contribution or contribution in kind to any candidate other committee or to any candidate. . . . (h) Recordkeeping. (1) All contributions and contributions in kind received by a candidate committee, small- scale issue committee, issue committee or political committee shall be documented and deposited and maintained in a financial institution in a separate account whose title shall include the name of the committeethat complies with Subsection 7-134(a)(7). Following any election in which the committee received contributions, the committee shall maintain Aall records pertaining to contributions and related accounts shall be maintained by the committee for one (1) year following any electionthe date the final disclosure report is due under Section 7-136 or the date the committee terminates, whichever is later, in which the committee received contributions unless a complaint has been filed under Subsection 7-145(a) alleging a violation of the provisions of this -6- Article, or the person or committee has received notice of an investigation or prosecution of a violation of this Article by the City or other law enforcement authority, in which case they shall be maintained until final disposition of the complaint and any consequent court proceedings. Such records shall be subject to inspection in connection with any investigation or other action to enforce the terms of this Article. (2) Following any election in which the committee made any expenditure, the committee shall document all expenditures and shall maintain All expenditures shall be documented and all records pertaining to said expenditures, including but not limited to invoices, receipts, instruments of payment, and copies of any public communications produced as a result of the expenditure, shall be maintained by the committee for one (1) year following the date the final disclosure report is due under Section 7-136 or the date the committee terminates, whichever is later,any election in which the committee expended the funds unless a complaint has been filed under Subsection 7-145(a) alleging a violation of the provisions of this Article, or the person or committee has received notice of an investigation or prosecution of a violation of this Article by the City or other law enforcement authority, in which case they shall be maintained until final disposition of the complaint and any consequent court proceedings. Documentation shall include the name and address of the vendor(s) or payee(s) providing the property, materials, or services and the amount of the expenditure. Such records shall be made available within three (3) business days upon request of the City and subject to inspection in connection with any investigation or other action to enforce the terms of this Article. (i) Reimbursements prohibited. No person shall make a contribution or contribution in kind to a candidate committee, issue committee, small-scale issue committee or political committee with the expectation that some or all of the amounts of such contribution will be reimbursed by another person. No person shall be reimbursed for a contribution or contribution in kind made to any candidate committee, issue committee, small-scale issue committee or political committee, nor shall any person make such reimbursement. An unexpended campaign contribution returned to a contributor or compensation for a contribution in kind by a candidate committee pursuant to § 7-135(c) shall not be considered a reimbursement. (j) A candidate committee, issue committee, small-scale issue committee or political committee shall not coordinate its expenditures or activities with, or share information with, any other such committee and shall not conduct its campaign activities in a manner that has the effect of circumventings any restrictions or limitations on campaign contributions, expenditures or reporting set forth in this Article. Section 5. That Section 7-136 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 7-136. Disclosure; filing of reports. . . . (b) For purposes of complying with the requirements of this Section, an issue committee, political committee or small-scale issue committee consisting of an organization whose -7- primary purpose is not to support or oppose ballot issues or candidates shall report only those contributions and contributions in kind accepted, expenditures made and obligations entered into for the purpose of supporting or opposing a ballot issue or ballot question or candidate. Such issue committee shall not be required to report donations, membership dues or any other payments received and for non-election purposes unless except to the extent such amounts are used or set aside to be used for the purpose of supporting or opposing a ballot issue or ballot question or candidate. . . . (d) The reports required by this Section shall include the balance of funds at the beginning of the reporting period, the total of contributions and contributions in kind received, and the total of expenditures made during the reporting period and the name and address of the financial institution used by the committee or party. The reports shall also include cumulative totals of contributions and contributions in kind received and a cumulative total of expenditures made by the committee during the election cycle. (e) All reports shall be submitted on forms provided by the City Clerk and shall be complete and correct in all respects. Reports shall be current in all respects as of two (2) days prior to the date upon which each such report is to be filed. (f) A report required to be filed by this Section is timely if the paper report is received by the City Clerk not later than the close of business on the date due or if the report is filed electronically not later than midnight Mountain Standard Time on the date due. Notwithstanding the foregoing, the report that is due by noon on the Friday before the election must be filed by noon regardless of the manner of filing. . . . (i) Except as specified in this Subparagraph (i), the disclosure requirements specified in this Section shall not apply to a small-scale issue committee. To the extent there is any conflict between the small-scale issue committee provisions of Subparagraphs (i), (j), (k), and (l) of this Section 7-136, those Subparagraphs shall control. Any small-scale issue committee shall disclose or file reports about the contributions, contributions in kind or expenditures it has made or received or otherwise register as an issue committee in connection with accepting or making such contributions or expenditures in accordance with the following alternative requirements: (1) Any small-scale issue committee that accepts or makes contributions or contributions in kind or makes expenditures in an aggregate amount during any applicable election cycle that does not exceed two hundred fifty dollars ($2050.) is not required to disclose or file reports about the contributions, contributions in kind or expenditures it has made or received or otherwise register as an issue committee in connection with accepting or making such contributions or contributions in kind or making such expenditures. (2) Any small-scale issue committee that accepts or makes contributions or contributions in kind or makes expenditures in an aggregate amount during any applicable election cycle of between two hundred fifty dollars ($2500.) and two thousand five thousand hundred dollars ($52,0500.) shall register with the City Clerk within ten (10) business days of the date on which the aggregate amount of contributions or expenditures exceeds two hundred fifty dollars ($2500.). The registration required by this -8- subparagraph must be on a form provided by the City Clerk and must include the following, together with any other information required to complete the registration form: . . . (j) Except as required by Subsection 7-135(f)(2), no small-scale issue committee described in subsection (i)(2) is required under this Article to disclose or report any contributions, contributions in kind or expenditures it has made or received, so long as it continues to meet the definition of small-scale issue committee. (k) Within seven (7) days of the date on which a small-scale issue committee accepts or makes contributions or contributions in kind or makes expenditures in an aggregate amount during any applicable election cycle that exceeds two thousand five hundredthousand dollars ($25,5000.), the committee shall: (1) through its registered agent, report this change in the committee's status to the City Clerk; and (2) report to the City Clerk on an approved form, for each particular contribution, contribution in kind or expenditure accepted or made, the name and address of each person who has made such contribution or contribution in kind and the amount of each specific contribution, contribution in kind and expenditure accepted or made by the committee. (l) Once any issue committee that began as a small-scale issue committee accepts or makes contributions or contributions in kind or makes expenditures in an aggregate amount during any applicable election cycle that exceeds two thousand five thousand hundred dollars ($52,0500.), the committee shall from that point forward make disclosure of any contributions, contributions in kind or expenditures it accepts or makes not already reported under Subparagraph (k) and comply with all requirements under this Article applicable to issue committees. . . . Section 6. That Section 7-139 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 7-139. Independent expenditures. (a) Any person, excluding a committee required to register under this Article, who makes independent expenditures in connection with any particular ballot totaling in the aggregate more than two hundred fifty dollars ($250.) shall report any such independent expenditures made after that threshold is met to the City Clerk on a form provided by the City Clerk no later than three (3) business days after the day that funds are obligated to pay for said independent expenditure. Said notice shall include the following information, together with any other information required by the City Clerk: (1) The name, address and telephone number of the person making the independent expenditures; -9- (2) The name of the candidate whom the independent expenditures are intended to support or oppose; (3) The name and address of the vendor(s) providing the property, materials or services; (4) A detailed description of the independent expenditures sufficient to allow for determination of compliance with this section; (5) The amount of the independent expenditures; (6) The date the funds were obligated; and (7) Copies of receipts, invoices, or other documentation related to the independent expenditure. (b) For the purposes of this provision, funds shall be considered to have been obligated as soon as an agreement is reached for the provision of the property, materials or services in question, regardless of when payment is to be made for such property or services. (c) All independent expenditures shall be documented and all records pertaining to independent expenditures, including but not limited to invoices, receipts, instruments of payment, and copies of any public communications produced as a result of the expenditure, shall be maintained for one (1) year following any election in which the funds were expended unless a complaint has been filed under Subsection 7-145(a) alleging a violation of the provisions of this Article, or the person or committee has received notice of an investigation or prosecution of a violation of this Article by the City or other law enforcement authority, in which case they shall be maintained until final disposition of the complaint and any consequent court proceedings. Such records shall be made available within three (3) business days upon request of the City and subject to inspection in connection with any hearing held pursuant to this Article. (d) Any person or persons, excluding a committee otherwise required to register under this Article, who makes or make independent expenditures in connection with any particular City election (including either candidate races or ballot questions or issues) totaling in the aggregate two thousand five hundred dollars ($2,500) or more, shall register as an issue committee or political committee, as applicable, within three (3) business days of having made expenditures in excess of such threshold. The initial report of any such committee shall provide the dates of any reports of independent expenditures previously made and the source of funds for said previously reported expenditures. Section 7. That Section 7-141 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 7-141. Expenditures for political advertising; rates and charges. (a) No candidate committee shall pay to any radio or television station, newspaper, periodical, internet advertiser or website provider, social media provider or other supplier of materials or services a higher charge than that normally required for local commercial customers for comparable use of space, materials or services. Any such rate shall not be rebated, directly or indirectly. (b) Any radio or television station, newspaper, internet advertiser or website provider, social media provider or periodical that charges an issue committee, small-scale issue committee -10- or candidate a committee a lower rate for use of space, materials or services than the rate such station, newspaper, internet advertiser or website provider, social media provider or periodical or supplier charges another issue committee or candidate committee for the same ballot measure or public office for comparable use of space, materials or services shall report the difference in such rate as a contribution in kind to the committee that is charged such lower rate. A person who receives a discounted rate as described herein shall be deemed to have received a contribution and to meet the definition of political committee, issue committee or small-scale issue committee, as applicable, and must comply with the related requirements. . . . Section 8. That Section 7-143 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 7-143. Violations and penalties. (a) Except as provided in Subparagraph (eb) herein, any person who knowingly violates or fails to comply with the provisions of this Article as set forth in the following schedule commits a civil infraction and is subject to a civil penalty as follows: Code Section Penalty Amount 7-133 – Candidate affidavit; disclosure statement; failure to file No monetary penalty (disqualification per Section 7-133) 7-134 - Registration of committees; termination. $150 first offense; $300 each subsequent offense 7-135 - Campaign contributions/expenditures. $100 first offense; $200 each subsequent offense 7-136 - Disclosure; filing of reports. $100 first offense; $200 each subsequent offense 7-137(b) - Reports to be public record. $50 first offense; $100 each subsequent offense 7-138 - Unexpended campaign contributions. $100 first offense; $200 each subsequent offense 7-139 - Independent expenditures $100 first offense; $200 each subsequent offense 7-140 - Responsibility for communications. $50 first offense; $100 each subsequent offense 7-141 - Expenditures for political advertising; rates and charges. $50 first offense; $100 each subsequent offense (b) Any person who undertakes any of the following commits a misdemeanor and is subject to a fine or imprisonment in accordance with § 1-15: (1) Knowingly violates § 7-135(e), (i), or (j), with the intent to circumvent the restrictions of § 7-135. -11- (2) Knowingly violates § 7-136 with the intent to fraudulently misrepresent campaign contributions or expenditures on a disclosure report; (23) Knowingly violates § 7-142; or (34) Is found liable for a violation after the person has been found liable for two (2) or more violations under this Article in a single election cycle. . . . (d) Each complaint received under Division 2 of this Article shall be posted on the City’s website along with other campaign information. Records of communications between the City Clerk and the complainant and between the City Clerk and the subject of any complaint shall be a public record. Section 9. That Section 7-145 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 7-145. Allegation of campaign violation. . . . (d) For complaints that do not allege a criminal violation, the complaints shall be subject to a civil infraction process as provided herein: . . . (4) If the City Attorney determines that the complaint satisfies the three (3) elements in the immediately preceding Subsection (2), the City Attorney shall notify the City Clerk who will, in turn, notify the respondent in writing of the presumptive penalty in accordance with § 7-143(a) and that the respondent shall have seven (7) days from the date of the notice to submit written evidence of its cure or diligent efforts to cure the violation, including any amendments to any applicable report containing one or more deficiencies, modified campaign materials or other proof that the violation has been corrected. The respondent's written response shall be due to the City Clerk no later than 5:00 p.m. on the seventh (7th )tenth (10th) day. In the event the seventh (7th )tenth (10th) day is a City holiday, the response shall be due no later than 5:00 p.m. the next business day. . . . (10) Any person that commits a violation of this Article shall be personally liable for the penalties imposed. Any candidate shall be personally liable for penalties imposed upon the candidate or the candidate's committee and may use campaign contributions to pay penalties. -12- Introduced, considered favorably on first reading and ordered published this 21st day of June, A.D. 2022, and to be presented for final passage on the 5th day of July, A.D. 2022. Mayor ATTEST: City Clerk Passed and adopted on final reading this 5th day of July, A.D. 2022. Mayor ATTEST: City Clerk