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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/07/2000 - FIRST READING OF ORDINANCE NO. 162, 2000, ESTABLIS AGENDA ITEM SUMMARY ITEM NUMBER: 20 DATE: November 7, 2000 FORT COLLINS CITY COUNCIL STAFF: Krajicek/Roy SUBJECT: First Reading of Ordinance No. 162, 2000, Establishing Local Election Campaign Provisions. RECOMMENDATION: Staff recommends adoption of the Ordinance on First Reading. EXECUTIVE SUMMARY: This Ordinance establishes local provisions regulating election campaigns, which supersede the provisions of the Fair Campaign Practices Act (FCPA) contained in Article 45 of Title 1 of the Colorado Revised Statutes, with the exception of Section 1-45-117 pertaining to limitations on contributions by state and political subdivisions. Inasmuch as practical, the local provisions very 40 closely follow the provisions of the FCPA. The drafting of local provisions resulted from discussions with Council in September regarding discrepancies between disclosure report filing dates contained in the FCPA and a filing date provision in the City Code. The enactment of local provisions will embody regulations pertaining to election campaigns in a single set of laws,thereby eliminating confusion caused by the need to be familiar with the requirements of both the FCPA and the City Code. BACKGROUND: In 1996,the voters of the state of Colorado approved an initiative which repealed Article 45 of Title 1 of the Colorado Revised Statutes(the Campaign Reform Act),and reenacted Article 45 as the Fair Campaign Practices Act(FCPA). The initiative was apparently written with the intent of regulating candidate and issue campaigns at the state level, without extensive thought given to the impact of the initiative on municipal elections. In an effort to address those impacts, the state legislature has enacted several amendments to the FCPA. Although amendments by the state legislature have improved the application of the FCPA in municipal elections, the FCPA continues to be difficult to understand for persons participating in local elections. Compliance with the FCPA is further complicated by ordinances adopted by home- rule municipalities enacting local provisions which differ from the provisions of the FCPA. Under Article XX, Section 6 of the Colorado Constitution, all matters pertaining to municipal elections, including, without limitation, "securing the purity of elections (and) guarding against abuses of the elective franchise"are matters of purely local concern that are subject to regulation by DATE: November 7, 2000 2 ITEM NUMBER: 20 the Charter or ordinances of the City. Adoption of this Ordinance will place the regulation of election campaigns in City elections solely under the jurisdiction of the City of Fort Collins. The cities of Longmont and Boulder have both enacted similar provisions. The enactment of local provisions does not eliminate the need for staff to monitor legislative changes in the state provisions for the purpose of analyzing the advisability of incorporating those changes in the state law into the City Code. One provision of the FCPA,Section 1-45-117 pertaining to limitations on contributions by state and political subdivisions, is not addressed in, or superseded by, this Ordinance. That is because the subject of regulating governmental involvement in local elections — unlike the regulation of the City's own elections—may well be a matter of at least mixed state and local concern. Following is a list of differences between the FCPA and the proposed Ordinance: 1. All FCPA provisions relating to the regulation of candidates for state elective offices and state-wide ballot issues have been eliminated. 2. Definitions of "ballot issue", "ballot question", "issue", and "termination report" have been added, and other definitions have been slightly modified, for clarity. 3. Provisions have been reorganized to more closely reflect the actual order of events. 4. All FCPA provisions relating to "political parties", which are inapplicable because Fort Collins elections are non-partisan, have been deleted. 5. Previously adopted local candidate campaign contribution limits have been integrated into this Ordinance($100 for mayoral candidates; $75 for council candidates). 6. The FCPA provision that prohibits a candidate committee from accepting a contribution or contribution in kind from a candidate committee of the same candidate that was established for a federal office has been retained and expanded to include state and county offices,because contributions to those campaigns are not limited by the City's campaign contributions limits. 7. The City's previously adopted regulations relating to independent expenditures have been included in lieu of the FCPA provisions relating to independent expenditures. 8. The reporting dates contained in the FCPA(21 days and the Friday before the election and 30 days after the election) and the reporting date established in the City Code(14 days before the election) have been included. Pursuant to prior Council action,all reports are required to be current as of two days prior to the due date. (The FCPA requires reports to be current as of five days prior to the due date.) DATE: November 7, 2000 3 ITEM NUMBER: 20 9. The FCPA provision prohibiting a candidate committee,issue committee,or political committee from accepting a contribution,or making an expenditure, in currency or coin in excess of$100 has been deleted. This provision does not appear to be meaningful for Fort Collins,since contributions to candidate committees are already limited to $100 (for mayoral candidates) or less. 10. The FCPA provision requiring a candidate committee for a former officeholder, or a person not elected to office, to expend all unexpended campaign contributions no later than nine years from the date such officeholder's term expired or from the date of the election at which a person was a candidate for office,whichever is later,has been retained,but the time limit has been reduced to five years. Staff believes five years,which provides sufficient time for a candidate committee to use its campaign funds for a subsequent campaign (of the same candidate) for the same office or contribute its campaign funds to a candidate committee (of the same candidate) formed for a different local office, is more reasonable. 11. The previously adopted requirement that the City Clerk publish in the newspaper the campaign reports filed 14 days prior to the election, has been incorporated into the Ordinance. I 12. The Ordinance requires the City Clerk to report apparent violations of the provisions of the Ordinance to the City Manager (as possible Code violations),rather than to"appropriate law enforcement officials"as required by the FCPA. 13. The FCPA sanctions for violations of the FCPA have been replaced by a provision which states that a person who knowingly violates or fails to comply with the provisions (of the Ordinance)commits a misdemeanor and is subject to a fine or imprisonment in accordance with Section 1-15 of the City Code (general penalty provisions). Cases involving-alleged violations of the Ordinance would be heard by the Municipal Judge. 10 i • ORDINANCE NO. 162, 2000 OF THE COUNCIL OF THE CITY OF FORT COLLINS ESTABLISHING LOCAL ELECTION CAMPAIGN PROVISIONS WHEREAS, in 1996,the voters of the state of Colorado approved an initiative enacting the Fair Campaign Practices Act(the"FCPA")to help ensure that elections in the state,and the political processes related thereto,are free from undue influence by wealthy contributors and special interest groups; and WHEREAS, the City Council agrees that the interests of the public are best served by limiting campaign contributions, encouraging voluntary campaign spending limits,full and timely disclosure of campaign contributions and strong enforcement of campaign laws; and WHEREAS, the City Council has previously enacted certain local ordinances governing some of the same subjects as are addressed at the state level in the FCPA, which local regulations are codified in Chapter 7, Article IV, Division 2 of the City Code; and WHEREAS, the FCPA and the provisions of the City Code on this subject differ in certain respects; and WHEREAS, candidates for the office of councilmember and mayor, as well as the • proponents and opponents of local ballot issues,must be familiar with the requirements of both the FCPA and the City Code insofar as they pertain to campaign contribution limits,reporting and other related matters; and WHEREAS, it would be less confusing for such persons, as well as City staff, if all regulations pertaining to such matters were embodied in a single set of laws; and WHEREAS,under Article XX,Section 6 of the Colorado Constitution,all matters pertaining to municipal elections in the City, including, without limitation, "securing the purity of elections (and)guarding against abuses of the elective franchise," are matters of purely local concern that are subject to regulation by the Charter or ordinances of the City; and WHEREAS,for the foregoing reasons,the City Council believes it to be in the best interests of the City to enact a local fair campaign practices act that incorporates the relevant provisions of the state FCPA into the City Code,with the single exception of the provisions contained in Section 1-45-117, C.R.S. pertaining to limitations on contributions by state and political subdivisions; and WHEREAS,it is the intent of the City Council in adopting this Ordinance to entirely occupy the field of regulating the conduct of City elections and,with the exception of Section 1-45-117,the campaign activities of persons who are seeking local elective office or supporting or opposing local ballot issues or contributing to the political campaigns relating to such candidates or issues; and • WHEREAS, to the extent that the provisions of this Ordinance conflict with the FCPA (excluding Section 1-45-117), it is further the intent of the City Council that the provisions hereof shall supersede any such conflicting provisions. NOW,THEREFORE,BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That Division 2 of Article IV of Chapter 7 of the Code of the City of Fort Collins be repealed and reenacted as a new Article V within Chapter 7 to read as follows: ARTICLE V. CAMPAIGNS Sec. 7-131. Legislative declaration. The City Council hereby finds and declares that large campaign contributions to political candidates allow wealthy contributors and special interest groups to exercise a disproportionate level of influence over the political process;that large campaign contributions create the potential for corruption and the appearance of corruption; that the rising costs of campaigning forpolitical office prevent qualified citizens from running for political office; and that the interests of the public are best served by limiting campaign contributions, full and timely disclosure of campaign contributions, and strong enforcement of campaign laws. 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: Ballot issue,ballot question,or issue shall mean any measure put to a vote of the registered electors of the city of Fort Collins at any election held under the provisions of the Charter. Candidate shall means 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. 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 the committee has filed a termination report with the City Clerk. Contribution shall mean: (1) The payment, loan, pledge, or advance of money, or guarantee of a loan, made to any candidate committee,issue committee,or political committee; -2- (2) Any payment made to a third party for the benefit of any candidate committee, issue committee, or political committee; (3) Anything of value given,directly or indirectly,to a candidate committee for the purpose of promoting the candidate's nomination, retention, recall, or election; or (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, an amount equal to the value in excess of such compensation or consideration as determined by the candidate committee, issue committee, or political committee. Contribution shall not include services provided without compensation by individuals volunteering their time on behalf of a candidate, candidate committee, political committee, or issue committee. 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,issue committee,or political committee for the purpose of influencing the passage or defeat of any issue or 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 or an issue by any person and shall not include the payment of compensation for legal and accounting services rendered to a candidate, candidate committee, political committee, or 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. Expenditure shall mean the payment,distribution,loan,or advance of any money by any candidate committee,political committee, or issue committee. Expenditure shall also include the payment, distribution, loan, or advance of any money by a person for the benefit of a candidate committee, political committee, or issue committee that is made with the prior knowledge and consent of an agent of the committee. An expenditure occurs when the actual payment is made or when there is a contractual agreement and the amount is determined. Independent expenditure shall mean the 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 -3- unambiguously refer to any specific public office or candidate for such office, but shall not include expenditures made by persons, other than political committees, in the regular course and scope of their business and political messages sent solely to their members. Issue committee shall mean: (1) Two (2) or more persons who are elected, appointed, or chosen, or have associated themselves, for the purpose of accepting contributions and making expenditures to support or oppose any ballot issue or ballot question; or (2) Any partnership,committee,association,corporation,labor organization,or other organization or group of persons that has accepted contributions or made expenditures to support or oppose any ballot issue or ballot question. For purposes of this subparagraph (2), the term "expenditure" shall not include expenditures made by persons in the regular course and scope of their business or in connection with communications sent solely to their members. The term "expenditure" also does not include a contribution, as defined in this Section. Issue committee shall not include political committees or candidate committees as otherwise defined in this Section. Person shall mean any individual, partnership, committee, association, corporation, labor organization, or other organization or group of persons. Political committee shall mean two (2) or more persons who are elected, appointed, or chosen, or have associated themselves, for the purpose of making contributions to candidate committees, issue committees, or other political committees, or for the purpose of making independent expenditures. Political committee shall not include issue committees,or candidate committees as otherwise defined in this Section. Political message shall mean a message delivered by telephone, any print or electronic media,or other written material which advocates the election or defeat of any candidate or which unambiguously refers to such candidate. Termination report shall mean a final report prepared by a candidate committee, issue committee,or political committee and filed with the City Clerk which discloses the committee's contributions received,expenditures made,and obligations entered into, when the following conditions have been met: (1) The committee no longer intends to receive contributions or make expenditures; and -4- . (2) A zero(0)balance exists in the account established and maintained under§ 7-135(f) and the committee has no outstanding debts or obligations. Unexpended campaign contributions shall mean the balance of funds on hand in any candidate committee, issue committee, or political committee following an election, less the amount of all unpaid monetary obligations incurred prior to the election. Sec. 7-133. Candidate affidavit; disclosure statement; failure to file. (a) When any individual becomes a candidate, such individual shall certify, by affidavit filed with the City Clerk within ten(10)days,that the candidate is familiar with the provisions of this Article. (b) Each candidate shall file a financial disclosure statement pursuant to§2-636 with the City Clerk within ten (10)days after filing acceptance of nomination. (c) Failure of any person to file the affidavit or disclosure statement required under this Section shall result in the disqualification of such person as a candidate for the office being sought. Disqualification shall occur only after the City Clerk has sent a notice to the person by certified mail,return receipt requested,addressed to the person's last known residence address. The notice shall state that the person will be . disqualified as a candidate if the person fails to file the appropriate document within five (5) business days of receipt of the notice. Sec. 7-134. Registration of committees. (a) All candidate committees,political committees,and issue committees shall register with the City Clerk before accepting or making any contributions. Registration shall include a statement listing: (1) The committee's full name, spelling out any acronyms used therein; (2) A natural person authorized to act as a registered agent; (3) A street address and telephone number for the principle place of operations; (4) All affiliated candidates and committees; (5) The purpose or nature of interest of the committee. (b) Any political committee whose purpose is the recall of any elected official shall register with the City Clerk within ten (10) business days of receiving its first contribution. Reports of contributions and expenditures shall be filed with the City Clerk within fifteen(15)days of the filing of the statement of organization and every thirty(30)days thereafter until the date of the recall election has been established and then fourteen (14) days and seven (7) days before the recall election and thirty(30) days following the recall election. -5- Sec. 7-135. Campaign contributions. (a) 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: (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 (b) No later than ten(10)business days after receiving a contribution in excess of the limits set forth in this Section, the candidate committee that received the contribution shall remit the excess to the contributor. (c) No candidate committee, issue committee, or political committee shall knowingly accept contributions 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. (d) No candidate committee shall make a contribution or contribution in kind to or accept a contribution or contribution in kind from a candidate committee of another candidate. (e) No candidate committee shall accept a contribution or contribution in kind from an candidate committee of the same candidate that was established or maintained for a federal, state, or county election campaign or office. (f) All contributions received by a candidate committee, issue committee, or political committee shall be deposited and maintained in a financial institution in a separate account whose title shall include the name of the committee. All records pertaining to such accounts shall be maintained by the committee for ninety(90)days following any election in which the committee received contributions unless a -6- • complaint has been filed under § 7-144(a) alleging a violation of the provisions of this Article, 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 at any hearing held pursuant to this Article. (g) No person shall make a contribution to a candidate committee, 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 made to any candidate committee,issue committee, or political committee, nor shall any person make such reimbursement. Sec. 7-136. Disclosure; filing of reports. (a) All candidate committees,political committees,and issue committees shall report to the City Clerk their contributions received,including the name and address of each person who has contributed twenty dollars ($20.) or more; expenditures made; and obligations entered into by the committee. (b) For purposes of complying with the requirements of this Section, an issue committee consisting of an organization whose primary purpose is not to support or oppose ballot issues shall report only those contributions accepted, expenditures made,and obligations entered into for the purpose of supporting or opposing a ballot • issue or ballot question. Such issue committee shall not be required to report donations, membership dues, or any other payments received unless such amounts are used or to be used for the purpose of supporting or opposing a ballot issue or ballot question. (c) Reports shall be filed with the City Clerk on the twenty-first day,fourteenth day, and on the Friday before the election, thirty (30) days after the election, and annually on the first day of the month in which the anniversary of the election occurs until such time as a termination report is filed. If the reporting day falls on a weekend or legal holiday, the report shall be filed by the close of the next business day. (d) The reports required by this Section shall include the balance of funds at the beginning of the reporting period, the total of contributions received, the total of expenditures made during the reporting period, and the name and address of the financial institution used by the committee or party. (e) All reports shall be submitted on forms provided by the City Clerk and shall be complete 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) Reports required to be filed by this Article are timely if received by the City . Clerk not later than the close of business on the due date. -7- (g) Any report that is deemed to be incomplete by the City Clerk shall be accepted on a conditional basis and the committee treasurer shall be notified in writing as to any deficiencies found. Such notice may be delivered in person, by mail, by fax, or, if an electronic mail address is on file with the City Clerk, by electronic mail.The committee treasurer shall have seven(7)business days from the date of delivery of such notice to file an amended report that cures the deficiencies. Sec. 7-137. Reports to be public record. (a) Upon receipt of any campaign report submitted pursuant to this Article,the City Clerk shall make available such report for public inspection. The campaign report filed with the City Clerk fourteen(14)days prior to the election pursuant to § 7-136 above shall be published by the City Clerk in a newspaper of general circulation in the city,which publication shall occur no less than seven(7)days prior to the election. The campaign report filed with the City Clerk thirty(30) days after the election pursuant to § 7-136 above shall also be published by the City Clerk in a newspaper of general circulation in the city,which publication shall occur no less than seven (7) days after the City Clerk's receipt of the report. (b) No information contained in any campaign report submitted pursuant to this Article shall be sold or used by any person for the purpose of soliciting contributions or for any commercial purpose. Sec.7-139. Unexpended campaign contributions. (a) Unexpended campaign contributions to a candidate committee may be: (1) Contributed to a political party; (2) Contributed to a candidate committee established by the same candidate for a different public office, subject to the limitations set forth in § 7-135(e), if the candidate committee making such a contribution is affirmatively closed by the candidate no later than ten(10)days after the date such a contribution is made; (3) Donated to a charitable organization recognized by the internal revenue service; (4) Returned to the contributors, or retained by the committee for use by the candidate in a subsequent campaign. In no event shall contributions to a candidate committee be used for personal purposes not reasonably related to supporting the election of the candidate. -8- • (b) In addition to any use described in paragraph (a) of this Section, a person elected to the office of mayor or councilmember may use unexpended campaign contributions held by the person's candidate committee for any of the following purposes: (1) Voter registration; (2) Political issue education, which includes obtaining information from or providing information to the electorate; (3) Postsecondary educational scholarships; (4) To defray reasonable and necessary expenses related to mailings and similar communications to constituents; (5) Any expenses that are directly related to such person's official duties as an elected official, including, but not limited to, expenses for the purchase or lease of office equipment and supplies, room rental for public meetings, necessary travel and lodging expenses for legislative education such as seminars,conferences,and meetings on legislative issues,and telephone and pager expenses. • (c) A candidate committee for a former officeholder or a person not elected to office shall expend all of the unexpended campaign contributions retained by such candidate committee,for the purposes specified in subsection(a)of this Section,no later than five (5) years from the date such officeholder's term expired or from the date of the election at which such person was a candidate for office, whichever is later. (c) Unexpended contributions to an issue committee or political committee may be donated to any charitable organization recognized by the Internal Revenue Service or returned to the contributor. Sec. 7-139. Independent expenditures. Any person making independent expenditures totaling more than one hundred dollars($100.)shall deliver notice in writing of such independent expenditures to the City Clerk no later than three (3) business days after the day that such funds are obligated. Said notice shall include the following information: (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; -9- (3) The name and address of the vendor(s)providing the property, materials or services; (4) A detailed description of the independent expenditures; (5) The amount of the independent expenditures; and (6) The date the funds were obligated. 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. Sec. 7-140. Duties of City Clerk. The City Clerk shall: (1) Prepare forms and instructions to assist candidates and the public in complying with the reporting requirements of this Article; (2) Develop a filing and indexing system consistent with the purposes of this Article; (3) Keep a copy of any report or statement required to be filed by this Article for a period of one (1) year from the date of filing. In the case of candidates who were elected,those candidate's reports and filings shall be kept for one (1) year after the candidate leaves office; (4) Make reports and statements filed under this Article available for public inspection and copying no later than the end of the next business day after the date of filing. (5) Upon request by the secretary of state,transmit records and statements filed under this Article to the secretary of state; (6) Notify any person who has failed to fully comply with the provisions of this Article; (7) Report apparent violations of this Article to the City Manager. -10- • Sec. 7-142. Expenditures for political advertising; rates and charges. (a) No candidate committee shall pay to any radio or television station, newspaper,periodical,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, or periodical that charges an issue committee or candidate committee a lower rate for use of space, materials, or services than the rate such station,newspaper,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 issue committee or candidate committee that is charged such lower rate. (c) Nothing in this Article shall be construed to prevent an adjustment in rates related to frequency, volume,production costs, and agency fees if such adjustments are offered consistently to other advertisers. Sec. 7-143. Encouraging withdrawal from campaign prohibited. No person shall offer or give any candidate or candidate committee any money • or any other thing of value for the purpose of encouraging the withdrawal of the candidate's candidacy,nor shall any candidate offer to withdraw a candidacy in return for money or any other thing of value. Sec. 7-144. Violations and penalties. (a) Any person who knowingly violates or fails to comply with any of the provisions of this Article commits a misdemeanor and is subject to a fine or imprisonment in accordance with § 1-15. (b) Failure to comply with the provisions of this Article shall have no effect on the validity of any election. Sec. 7-145. Severability. If any provision of this Article or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of the Article which can be given effect without the invalid provision or application,and to this end the provisions of this Article are declared to be severable. -11- Introduced and considered favorably on first reading and ordered published this 7th day of November, A.D. 2000, and to be presented for final passage on the 21st day of November, A.D. 2000. Mayor ATTEST: City Clerk Passed and adopted on final reading this 21st day of November, A.D. 2000. Mayor ATTEST: City Clerk -12-