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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 09/05/2000 - FIRST READING OF ORDINANCE NO. 125, 2000, AMENDING AGENDA ITEM SUMMARY ITEM NUMBER: 41 FORT COLLINS CITY COUNCIL DATE: September 5, 2000STAFF: Wanda Krajicek SUBJECT: First Reading of Ordinance No. 125, 2000, Amending Section 7-127 of the City Code Relating to Independent Expenditures. RECOMMENDATION: Staff recommends adoption of the Ordinance on First Reading. EXECUTIVE SUMMARY: At its June 27, 2000 Study Session, Council discussed independent expenditures advocating the election or defeat of a candidate and whether local requirements,above and beyond the requirements contained in the Fair Campaign Practices Act (FCPA), should be established. At the time of the study session, Councilmembers indicated that recent amendments to the FCPA and the reporting 40 forms satisfied their concerns. However,since the study session,individual Councilmembers have expressed an interest in establishing local reporting requirements that would be more stringent than the state's. If adopted, this Ordinance will require any person making an independent expenditure in excess of$100 to notify all candidates in the affected race and the City Clerk within 24 hours after obligating funds for the expenditure. BACKGROUND: An independent expenditure is defined in the FCPA as follows: "Independent expenditure"means payment of money by any person for the purpose of advocating the election or defeat of a candidate, which expenditure is not controlled by, or coordinated with, any candidate or any agent of such candidate. "Independent expenditure" includes expenditures for political messages which unambiguously refer to any specific public office or candidate for such office, but does not include expenditures made by persons,other than political parties and political committees,in the regular course and scope of their business and political messages sent solely to their members. Section 1-45-107 of the FCPA provides for the reporting of independent expenditures in excess of $1,000 as follows: DATE: September 5, 2000 2 ITEM NUMBER: 41 1-45.107. Independent expenditures.(1) Any person making an independent expenditure in excess of one thousand dollars shall deliver notice in writing of such independent expenditure,as well as the amount of such expenditure,and a detailed description of the use of such independent expenditure, within twenty-four hours after obligating funds for such expenditure. Such notice shall be delivered to all candidates in the affected race and to the secretary of state. The notice shall specifically state the name of the candidate whom the independent expenditure is intended to support or oppose. Each independent expenditure shall require the delivery of a new notice. (2) Any person making an independent expenditure in excess of one thousand dollars shall disclose in the political message produced by the expenditure,the full name of the person,the name of the registered agent,the amount of the expenditure,and the specific statement that the advertisement or material is not authorized by any candidate. Such disclosure shall be prominently featured in the political message. (3) Expenditures by any person on behalf of a candidate for public office that are coordinated with or controlled by the candidate or the candidate's agent shall be considered a contribution to the candidate and subject the candidate and the contributor to any applicable penalties contained in this article. The City Code does not currently address the issue of independent expenditures, other than to exempt independent expenditures from the limits established for contributions or contributions in kind made to a candidate. The FCPA requires that notices of independent expenditures in excess of$1000 be delivered to all of the candidates in the affected race and the secretary of state. It does not require delivery to the municipal clerk. If adopted, this Ordinance will require any person making an independent expenditure in excess of $100 to notify all candidates in the affected race and the City Clerk within 24 hours after obligating funds for the expenditure. ORDINANCE NO. 125, 2000 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING SECTION 7-127 OF THE CODE OF THE CITY OF FORT COLLINS RELATING TO INDEPENDENT EXPENDITURES WHEREAS, Article VIII, Section 8 of the Charter of the City of Fort Collins provides that the City Council shall act by ordinance to establish a limit on the amount that any person or entity may contribute in support of a candidate for Council on the ballot at any City election; and WHEREAS, said contribution limits appear in Section 7-127 of the City Code; and WHEREAS,the Council has,by the adoption of Ordinance No. 121,2000,amended Section 7-127 of the City Code to increase those contribution limits; and WHEREAS, the contribution limits do not apply to independent expenditures made in support of a candidate's campaign; and WHEREAS, the Council believes that independent expenditures exceeding the amount of $100 should be reported to all candidates and information pertaining to such independent expenditures should also be made available to members of the public. . NOW, THEREFORE,BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that Section 7-127 of the Code of the City of Fort Collins be amended to read as follows: Sec. 7-127. Limits. (a) No person may make contributions or contributions in kind totaling more than one hundred dollars ($100.) to any candidate for the office of Mayor or the candidate committee of such candidate. No person may make contributions or contributions in kind totaling more than seventy five dollars($75.) to any candidate for the office of Councilmember or the candidate committee of such candidate. These limitations shall apply to all contributions or contributions in kind, whether made directly to a candidate or candidate committee or indirectly via earmarked gifts passed through an intermediary,except that these limitations shall not apply to: (1) Contributions or contributions in kind made by a candidate to his or her own candidate committee; (2) Independent expenditures; (3) Monetary loans that are: (a) personally guaranteed in writing by the candidate,the candidate's immediate family or a business entity in which the • candidate owns at least five (5) percent; or (b) secured by real or personal property owned by the candidate, the candidate's immediate family or a business entity in which the candidate owns at least five (5)percent; or (4) The value of volunteer services provided without compensation by individuals volunteering their time on behalf of a candidate or a candidate committee. df stfhex etI ats expndttureh"wt tyr n f4} �4 nf�ltl 'g tyu#i ci °i kt f e7(pi�ridtture Sneyl��t�ltc��h,t,.; ltver � 1 `��Ptf'f�� ' � K"3! ¢i (bc) For the purposes of this Section, the following definitions shall apply: Candidate shall mean any person who seeks nomination or election to the office of Mayor or Councilmember at any city election. A person is a candidate if the person has publicly announced an intention to seek such election or has filed nominating petitions for the office of Mayor or Councilmember or has been chosen to fill any vacancy in the office of Mayor or Councilmember. Candidate committee shall mean a person, including the candidate, or persons with the common purpose of receiving contributions and making expenditures under the authority of a candidate. A candidate shall have only one candidate committee. A candidate committee shall be considered open and active until affirmatively closed by the candidate or by action of the secretary of state. Contribution shall mean: (1) The payment, loan, pledge, or advance of money, or guarantee of a loan, made to any candidate committee; (2) Any payment made to a third party for the benefit of any candidate committee; (3) The fair market value of any gift or loan of property made to any candidate committee; (4) Anything of value given,directly or indirectly,to a candidate for the purpose of promoting the candidate's nomination, retention, recall, or election; or (5) 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, an amount equal to the value in excess of such compensation or consideration as determined by the candidate committee. Contribution shall not include services provided without compensation by individuals volunteering their time on behalf of a candidate, candidate committee, political committee, issue committee, or political party. Contribution in kind shall mean the fair market value of a gift or loan of any item of real or personal property, other than money, made to or for any candidate committee for the purpose of influencing the nomination, retention, election, or defeat of any candidate. Personal services shall be considered a contribution in kind by the person paying compensation therefor. In determining the value to be placed on contributions in kind, a reasonable estimate of fair market value shall be used. Contribution in kind shall not include an endorsement of a candidate by any person and shall not include the payment of compensation for legal and accounting services rendered to a candidate 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 section or the provisions of the state Fair Campaign Practices Act. Independent expenditure shall mean payment of money by any person for the purpose of advocating the election or defeat 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, but shall not include expenditures made by persons, other than political parties and political committees, in the regular course and scope of their business and political messages sent solely to their members. Person shall mean any individual, partnership, committee, association, corporation, labor organization or other organization or group of persons. Introduced, considered favorably on first reading, and ordered published this 5th day of September, A.D. 2000, and to be presented for final passage on the 19th day of September, A.D. 2000. Mayor ATTEST: . City Clerk Passed and adopted on final reading this 19th day of September, A.D. 2000. Mayor ATTEST: City Clerk