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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 07/05/2022 - SECOND READING OF ORDINANCE NO. 079, 2022, AMENDIN Agenda Item 14 Item # 14 Page 1 AGENDA ITEM SUMMARY July 5, 2022 City Council STAFF Anissa Hollingshead, City Clerk Rita Knoll, Chief Deputy City Clerk Carrie Daggett, City Attorney SUBJECT Second Reading of Ordinance No. 079, 2022, Amending Chapter 7 of the Co de of the City of Fort Collins to Clarify, Revise and Strengthen Restrictions and Requirements for Campaign Finance in City Elections. EXECUTIVE SUMMARY This Ordinance, adopted on First Reading on June 21, 2022 by a vote of 4 -3 (Nays: Francis, Peel, Pignataro), considers amendments to Chapter 7 of City Code related to clarifying, revising and strengthening restrictions and requirements for campaign finance in City elections. Based on the discussion at First Reading, potential amendments to the proposed ordinance have been prepared to address the issues outlined during deliberations. Councilmembers may choose to make one or more of these amendments to the proposed ordinance before potentially adopting the ordinance. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. BACKGROUND / DISCUSSION Following First Reading, the Election Code Committee discussed some potential amendments to the language approved on first reading. The Committee agreed conceptually on four areas to pr ovide updated language that could be moved by a Councilmember and voted on by the Council at second reading if desired. These four areas include: Amendment 1: (volunteer services excluded from “contribution” unless paid by someone) On page 2 of the Ordinance, revise definition of “contribution” where exclusions are stated, to add and delete language in (1) as follows: Contribution shall not include: (1) Services provided without compensation by an individuala natural person volunteering their personal 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 ; . . . Amendment 2: (refining definition of mailing lists excluded from “contribution”) On page 2 of the Ordinance, revise definition of “contribution” where exclusions are stated, to add and delete language in (2) as follows: Contribution shall not include: Agenda Item 14 Item # 14 Page 2 . . . (2) Mailing lists that were not developed primarily for sale, have never been sold or offered for sale, were not produced by an employee or contractor (other than an employee of the recipient), and do not incorporate mailing lists that themselves would constitute a contribution; . . . Amendment 3: (add a requirement that candidates, candidate committees and political committees obtain certifications of value for all purchases and contributions and establishing a violation for a false certification): • On page 6 of the Ordinance, add a new subsection (k) to Code Section 7-135, to read as follows: Sec. 7-135. Campaign contributions/expenditures. . . . (k) A candidate, candidate committee or political committee shall obtain from each seller a certification of full fair market value for any purchased goods or services and from the contributor for any goods or services that constitute a contribution or contribution in kind. Any seller or contributor asked to provide a certification of value shall provide to the candidate, candidate committee or political committee a correct and undiscounted statement of value. Certification of value documentation shall be provided by a candidate, candidate committee or political committee to the City Clerk, or other appropriate City official responsible f or investigating or reviewing compliance, upon request. • And, on page 10 of the Ordinance, revise Code Section 7-144(b)(1) to read as follows: (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), or (k), with the intent to circumvent the restrictions of § 7- 135. . . . Amendment 4: (eliminate requirement that a civil violation be “knowing”) On page 9 of the Ordinance, revise the initial sentence as follows: Sec. 7-143. Violations and penalties. (a) Except as provided in Subparagraph (b) herein, any person who knowingly violates or fails to comply with the provisions of this Article as set forth in the following schedule comm its a civil infraction and is subject to a civil penalty as follows: ATTACHMENTS 1. First Reading Agend Item Summary, June 21, 2022 (w/o attachments) (PDF) 2. Powerpoint Presentation (PDF) 3. Ordinance No. 079, 2022 (PDF) 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; ATTACHMENT 1 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) Campaign Finance Amendments 07-05-2022 Anissa Hollingshead City Clerk Rita Knoll Chief Deputy Clerk ATTACHMENT 2 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 Changes Discussed Following First Reading Potential Amendment 1: Volunteer Services excluded from “Contribution” unless paid by someone On page 2 of the Ordinance, revise definition of “contribution” where exclusions are stated, to add and delete language in (1) as follows: Contribution shall not include: (1)Services provided without compensation by an individuala natural person volunteering their personal 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; 3 This Photo by Unknown Author is licensed under CC BY-SA 4Changes Discussed Following First Reading Potential Amendment 2: Refining definition of mailing lists excluded from “contribution” On page 2 of the Ordinance, revise definition of “contribution” where exclusions are stated, to add and delete language in (2) as follows: Contribution shall not include: ... (2)Mailing lists that were not developed primarily for sale,have never been sold or offered for sale,were not produced by an employee or contractor (other than an employee of the recipient), and do not incorporate mailing lists that themselves would constitute a contribution; 5Changes Discussed Following First Reading Potential Amendment 3: Ad d a requirement that candidates, candidate committees, and political committees obtain certifications of value for all purchases and contributions and establishing a violation for a false certification On page 6 of the Ordinance, add a new subsection (k) to Code Section 7-135, to read as follows: Sec.7-135.Campaign contributions/expenditures. (k)A c andidate, candidate committee or political committee shall obtain from each seller a certification of full fair market value for any purchased goods or services and from the contributor for any goods or services that constitute a contribution or contribution in kind. Any seller or contributor asked to provide a certification of value shall provide to the candidate, candidate committee or political committee a correct and undiscounted statement of value. Certification of value documentation shall be provided by a candidate, candidate committee or political committee to the City Clerk, or other appropriate City official responsible for investigating or reviewing compliance, upon request. --And, on page 10 of the Ordinance, revise Code Section 7-144(b)(1) to read as follows: (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),or (k),with the intent to circumvent the restrictions of §7-135. 6Changes Discussed Following First Reading Potential Amendment 4: Eliminate requirement that a civil violation be knowing On page 9 of the Ordinance, revise the initial sentence as follows: Sec.7-143.Vi olations and penalties. (a)Except as provided in Subparagraph (b)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: 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, the 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 individual 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. -3- . . . 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, and that take steps in furtherance of an intent to accept contributions or contributions in kind, or make expenditures, to support or oppose any ballot issue or ballot question; or (2) Any person that takes steps in furtherance of an intent to accept 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, and that take steps in furtherance of an intent to accept contributions, or contributions in kind, or make expenditures to support or oppose one (1) or more candidates; or (2) Any person that takes steps in furtherance of an intent to accept 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. . . . Small-scale issue committee means a committee otherwise meeting the definition of issue committee that has accepted contributions, contributions in kind or expenditures in an amount that does not exceed two thousand five hundred dollars ($2,500.) 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 committee: a. A small-scale issue committee that supports or opposes a common ballot measure if the committee is established, financed, or controlled by a single corporation or its subsidiaries; -4- b. A small-scale issue committee that supports or opposes a common ballot measure if the committee is established, financed, maintained, or controlled by a single labor organization or the affiliated local units it directs; and c. A small-scale issue committee that supports or opposes a common ballot measure if the committee is 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 candidate, 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 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. . . . -5- (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 knowingly accept a contribution made in violation of this Subsection (c). (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 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 Article 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 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 that complies with Subsection 7-134(a)(7). Following any election in which the committee received contributions, the committee shall maintain all records pertaining to contributions and related accounts 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, 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 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 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, 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, 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 -6- 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 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 committee and shall not conduct its campaign activities in a manner that has the effect of circumventing 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 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 committee shall not be required to report donations, membership dues or any other payments received and for non-election purposes 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. 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. -7- (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 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 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 ($250.) 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 such contributions or contributions in kind or making such expenditures. (2) Any small-scale issue committee that accepts contributions or contributions in kind or makes expenditures in an aggregate amount during any applicable election cycle of between two hundred fifty dollars ($250.) and two thousand five hundred dollars ($2,500.) 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 ($250.). The registration required by this 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 contributions or contributions in kind or makes expenditures in an aggregate amount during any applicable election cycle that exceeds two thousand five hundred dollars ($2,500.), the committee shall: (1) through its registered agent, report this change in the committee's status to the City Clerk; and -8- (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 contributions or contributions in kind or makes expenditures in an aggregate amount during any applicable election cycle that exceeds two thousand five hundred dollars ($2,500.), 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; (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 -9- 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 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 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 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 (b) 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 -10- 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. (2) Knowingly violates § 7-136 with the intent to fraudulently misrepresent campaign contributions or expenditures on a disclosure report; (3) Knowingly violates § 7-142; or (4) 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. . . . -11- (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 tenth (10th) day. In the event the 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. 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