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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 09/18/2001 - FIRST READING OF ORDINANCE NO. 148, 2001, AMENDING AGENDA ITEM SUMMARY ITEM NUMBER: 17 FORT COLLINS CITY COUNCIL DATE: September 18, 2001 FROM: Wanda Krajicek SUBJECT: First Reading of Ordinance No. 148, 2001, Amending Chapter 7 of the City Code Relating to Election Campaigns. RECOMMENDATION: Staff recommends adoption of the Ordinance on First Reading. EXECUTIVE SUMMARY: This Ordinance amends Article V of Chapter 7 of the City Code relating to campaign practices in local elections. The majority of the changes proposed are intended to provide clarification of existing provisions. CKGROUND: In November 2000, City Council adopted Ordinance No. 162, 2000 establishing local provisions regulating election campaigns, which provisions 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 closely follow the provisions of the FCPA. The enactment of local provisions has embodied 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. In addition, the enactment of local provisions allows the Council to make amendments as deemed necessary to ensure that local election campaigns are free from undue influence and that full and timely disclosure of campaign contributions and expenditures occurs. At the time of adoption of the local provisions, it was anticipated that amendments to the provisions would be identified as the local provisions were put into use. The local provisions enacted in 2000 were applied for the first time during the April 2001 election. As staff received questions from candidates, issue committees, and the public, notes were made of issues that should be reviewed and perhaps amended for purposes of clarification. DATE: September 18,2001 2 ITEM NUMBER: 17 Following is a summary of the proposed amendments: • Amends definition of "ballot issue, ballot question, or issue" to include any measure for which recall, initiative or referendum proceedings have been commenced. • Amends definition of"candidate" to include an elected official who is the subject of recall proceedings. • Amends definition of"independent expenditure" to include advocating the recall of a candidate as a purpose for making an independent expenditure. • Amends definition of "political committee" to exclude any partnership, committee, association, corporation, labor organization or other organization or group of persons that was previously established for a primary purpose outside of the scope of elections. • Deletes a provision that establishes separate reporting requirements for a political committee whose purpose is the recall of any elected official. • Adds a provision prohibiting joint contributions that exceed the contribution limit for a single person. • Clarifies that unexpended campaign contributions returned to contributors are not considered reimbursements(which are prohibited). • Clarifies that disclosure reports may be filed by fax, provided that the original copy of the report is filed no later than the close of business on the next business day. • Adds a provision requiring any committee which has not accepted any contributions or contributions in kind, made any expenditures, or entered into any obligations to file reports on specific dates certifying those facts. • Makes other minor amendments clarifying the application of certain provisions during a recall election. ORDINANCE NO. 148, 2001 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 7 OF THE CODE OF THE CITY OF FORT COLLINS RELATING TO ELECTION CAMPAIGNS 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, full and timely disclosure of campaign contributions and strong enforcement of campaign laws; and WHEREAS, the Council believes that these interests can best be advanced with regard to local elections by local laws regulating the campaign activities related to such elections; and WHEREAS,on November 21,2000,the City Council adopted on second reading Ordinance No. 162, 2000, which approved a new Article V of Chapter 7 of the City Code establishing local election campaign provisions, which provisions supersede the provisions of the FCPA; and WHEREAS,the local campaign provisions were applied for the fast time in conjunction with the regular municipal election held on April 3, 2001; and WHEREAS,after experiencing the application of the local provisions,staff is recommending amendments to certain sections of the campaign provisions primarily for the purpose of clarification; and WHEREAS,the Council believes that the interests of the public are best served by periodic review and amendment of the local provisions. NOW,THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the definitions of"ballot issue, ballot question or issue," "candidate," "contribution," "independent expenditure," and "political committee" contained in Section 7-132 of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 7-132. Definitions. Ballot issue, ballot question or issue shall mean any measure put to a vote of the registered electors of the city byr the City Council at any election to be held under the provisions of the Charter. Fatpurposesofthig A;3ticle V,balWissue,ballot¢uestion or issue shall also-•meawajy: for-VAfth recall;r e.or re urn 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. RRIPPM 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) 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, reeall 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. Independent expenditure shall mean the payment of money by any person for the purpose of advocating the election, or defeats pt,r 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 committees,in the regular course and scope of their business and political messages sent solely to their members. 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; ( ) ilssue committees or candidate committees as otherwise defined in this Sections (2) Section 2. That Section 7-133 of the Code of the City of Fort Collins be amended by the addition of a new subparagraph(d)to read as follows: 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. �! ', � .t�Sestiotil not applyf�aa any ele6tc�tFi�'icial tkho is tl��itbj ,(1ft�i`.atll�fbiYtngs. Section 3. That Section 7-134 of the Code of the City of Fort Collins be amended to read as follows: Sec. 7-134. Registration of committees. * 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 principal place of operations; (4) All affiliated candidates and committees; (5) The purpose or nature of interest of the committee. shell register with the Gity Glerk wid2in ten(10)business days of reeeiving its first Glerk widiin fifteen(15)days of the filing ofthe staternent of organization and every days following the reeall eleetion. Section 4. That Section 7-135 of the Code of the City of Fort Collins be amended to read as follows: Sec. 7-135. Campaign contributions. (a) Limits 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.No person shall make a contribution or contribution in kind in the name of another person or knowingly permit one's name to be used by another person to effect such a contribution or contribution in kind. 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 (4) Contributions made to a candidate committee by another candidate committee established by the same candidate for the office of Mayor or Councilmember. RONI _ . , (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. (e4) kNo 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. (a) Cok v ranteet Yf a mo (dl) 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. (e2) No candidate committee shall accept a contribution or contribution in kind from a candidate committee of the same candidate that was established or maintained for a federal, state or county election campaign or office. (f) Recoeping.; 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 complaint has been filed under§7-143(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) Reimbursements prohibited. 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. Section 5. That Section 7-136(f) and (g) of the Code of the City of Fort Collins be amended, and a new subparagraph(h)added,to read as follows: Sec. 7-136. Disclosure; filing of reports. (f) Repet required to be filed by this Article are I timely if received by the City Clerk not later than the close of business on the due date Fry : an oftstgctif: rsoneorii�rletugthe reliffl. (g) Any report that is deemed by,the Criy.;;QO to be incomplete or uteo� with_ ems, eats o lltVl att by—t}zeGity—Egerk 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. (h) Anycandildateic tulbee,Psa} i commitlae vuhich atithe C�? � flues _ttt pl (C) atwve ,, thaot thYPW a . e Section 6. That Section 7-137(a) of the Code of the City of Fort Collins be amended to read as follows: 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 At than seven(7) days after the City Clerk's receipt of the report. Section 7. That Section 7-138(a) and (b) of the Code of the City of Fort Collins be amended to read as follows: Sec. 7-138. 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 ubsequent eatppaign,subject to the limitations set forth in § 7-135(e)(2), 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 earmnittee for ttse by the In no event shall contributions to a candidate committee be used for personal purposes not reasonably related to supporting the election or retention of the candidate. (b) In addition to any use described in Subsection(a)of this Section, a person elected to the office of Mayor or Councilmember,or,retained in offtee.following,a recalUattempt, 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. Section 8. That Section 7-139 of the Code of the City of Fort Collins be amended to read as follows: Sec. 7-139. Independent expenditures. Any person or,�Vokcrca! coamaittce 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; (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. Introduced and considered favorably on first reading and ordered published in summary form this 18th day of September, A.D. 2001, and to be presented for final passage on the 2nd day of October,A.D. 2001. Mayor ATTEST: City Clerk Passed and adopted on final reading this 2nd day of October, A.D. 2001. Mayor ATTEST: City Clerk