HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 08/21/2018 - FIRST READING OF ORDINANCE NO. 113, 2018, AMENDINGAgenda Item 23
Item # 23 Page 1
AGENDA ITEM SUMMARY August 21, 2018
City Council
STAFF
Delynn Coldiron, City Clerk
Rita Knoll, Chief Deputy City Clerk
Ryan Malarky, Legal
SUBJECT
First Reading of Ordinance No. 113, 2018, Amending Chapter 7 of the Code of the City of Fort Collins to
Amend Requirements and Procedures Related to Campaigns and Campaign Finance in City Elections.
EXECUTIVE SUMMARY
The purpose of this item is to consider proposed amendments to the City’s election campaign code provisions
that will raise the threshold requirement for reporting of independent expenditures, ensure that the campaign
violation complaint process applies to reporting of independent expenditures, and require “paid for by”
disclaimers on campaign communications for registered committees. There are also various clean-up items
that provide changes for added clarity and to reconcile conflicts created by the proposed amendments.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading. The Election Committee considered and
recommended adoption of key portions of the Ordinance.
BACKGROUND / DISCUSSION
In 2015, Council formed an ad hoc committee to review, discuss and recommend changes to the City Code
and Charter regarding elections and other related matters. In 2017, Council made the ad hoc committee a
standing committee of the 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 rapidly changing
legal and technological environment. Councilmembers Cunniff, Overbeck, and Stephens have continuously
served in this capacity since 2015.
Since the original formation of the ad hoc Committee, Council has considered and adopted four Ordinances
amending various provisions of Chapter 7. This Ordinance represents a continuation of the work to make
improvements. Most of the amendments contained in this Ordinance are considered to be noncontroversial
and enacting them at this time will be advantageous as preparations begin for the 2019 City Election.
A summary of the proposed amendments, in the order they appear in the ordinance follows:
Increased Threshold for Reporting Independent Expenditures:
This Ordinance changes the threshold requirements for reporting independent expenditures from $100 to an
amount to be determined by Council. Staff research has found that there is some movement by courts to
scrutinize more closely burdens on political speech. As well, staff research found that other Colorado home-
rule municipalities have higher thresholds; from $250 to $1,000, with $1,000 as the most prevalent applicable
limit. The Colorado Constitution and corresponding state laws require reporting of independent expenditures
exceeding $1,000. This is the reporting requirement for all statutory municipalities (172). The Election Code
Agenda Item 23
Item # 23 Page 2
Committee recommends an increase in the reporting threshold to support the City’s and the public’s interest in
shedding light on spending in City elections, while respecting freedom of political speech. This would also
more appropriately align the City’s reporting requirements for independent expenditures with State law and
other municipalities.
At the July Work Session there was support for some level of increase to be determined by Council at First
Reading. The Work Session Summary is attached. (Attachment 1)
Changes have been included in this Ordinance that make it clear that registered committees that report their
expenditures through a campaign finance report are not required to also report them as an independent
expenditure to avoid duplicate reporting efforts.
“Paid for By” Disclaimer on Campaign Communications
This Ordinance requires a “paid for by” disclaimer on campaign communications for all registered committees.
Because registered committees are already subject to reporting and other process requirements, it was
determined that this added step would not be unreasonably burdensome and would provide important
transparency to the voting public in connection with local campaign literature and advertising. The Ordinance,
as drafted, does not require “paid for by” disclosure on independent expenditures.
Change in Requirements for Registering Committees
This Ordinance eliminates the overlap that currently exists between the various committees.
The Ordinance includes a change to the definition of “Issue Committee” to make clear that two or more
persons that either take contributions or make expenditures (and not just those that do both) to support or
oppose ballot measures must register as an issue committee. As well, the definition makes it clear that any
person, as defined by the Article, that accepts contributions to support or oppose ballot measures must also
register as an issue committee. The existing definition of “person” in the Article reads: “Any individual,
partnership, committee, association, corporation, labor organization or other organization or group of persons.”
The Ordinance includes a similar change to the definition of “Political Committee” to make it clear that two or
more persons that either take contributions or make expenditures (and not just those that do both) to support
or oppose candidates must register as a political committee. Likewise, the definition makes it clear that any
person, as defined by the Article, that accepts contributions to support or oppose candidates must also register
as a political committee. The proposed changes eliminate the ability for political committees to make
contributions in support of or opposition to ballot issues.
Any single person, or other person, who does not accept contributions, but chooses to spend their own money
to support or oppose candidates or issues are subject to Independent Expenditure requirements.
The need to review and update the various types of campaign committees, and the plan to reorganize this
portion of Chapter 7 was discussed at the August Election Code Committee meeting. Staff hoped to bring
more widespread updates of this Article to the Council for consideration as part of this Ordinance; however, the
magnitude and complexity of those changes made it impractical to have them ready. Staff anticipates
proposing an editorial rewriting of this Article after the April 2019 election and will work with the Election Code
Committee to prepare recommendations for Council at that time.
Extension of Campaign Violation Provisions to Independent Expenditures
Staff has identified that the current Code provisions concerning the complaint process for campaign violations
cover violations by registered committees, but the complaint process does not specifically cover violations by
persons who may make independent expenditures. This Ordinance adds the term “person” to ensure that
independent expenditure violations are subject to the citizen complaint process.
Agenda Item 23
Item # 23 Page 3
Other Clean-Up Items
This Ordinance includes various clean-up items to help add clarity and reconcile conflicts created by the prior
and proposed amendments. An example is to change certain definitions in Code Section 7-132 to clarify the
distinctions between the various types of campaign committees, and to reconcile these with other
amendments. There are also small wording changes in several sections.
Some of these items were discussed briefly at the August Election Code Committee meeting, while some were
identified after that meeting took place.
A red-lined version of the Ordinance comparing it to the version that was provided for Council discussion at the
Work Session in July is attached for reference (Attachment 3). The updated Ordinance, without red-lines,
provides a simpler look at the proposed changes.
CITY FINANCIAL IMPACTS
Any financial impacts as a result of these amendments will be negligible.
PUBLIC OUTREACH
Meetings of the Election Code Committee are posted on the City’s website in advance of the meeting. Several
members of the community regularly attend Committee meetings and provide input to the Committee on topics
on the agenda and other items of interest. These issues were discussed most recently at the Committee’s
August 2, 2018, meeting. Draft minutes from that meeting are attached. (Attachment 2)
ATTACHMENTS
1. Work Session Summary, July 17, 2018 (PDF)
2. Election Code Committee minutes, August 2, 2018 (draft) (PDF)
3. Comparison Between Work Session Ordinance and Current Ordinance (DOCX)
4. Powerpoint presentation (PDF)
ATTACHMENT 1
August 2, 2018
ELECTION CODE COMMITTEE MEETING
12:00 PM
PRESENT: Stephens, Cunniff, Malarky, Knoll, Gonzales, Daggett
(Councilmember Overbeck was absent)
CITIZENS PRESENT: Marge Norskog, Jody Deschenes, Robbie Moreland, Anne Thompson, Sarah
Pitts, Jan Rossi
1. CALL MEETING TO ORDER
Councilmember Stephens called the meeting to order.
2. CITIZEN COMMENT
Marge Norskog thanked the Committee for publishing its working draft and presented the Committee
with a chart comparing various municipalities regarding various election-related topics. She stated
protecting election integrity is paramount and supported some of the changes made since the Council
work session. However, she expressed concern about the $1,000 independent expenditure limit
without a “paid for by” requirement. She stated no city with its own election code that is the size of
Fort Collins or smaller has a $1,000 limit. Anonymous communication undermines election integrity.
Jody Deschenes thanked the Committee for holding an August meeting. She requested a balance be
found between freedom of speech and election transparency and integrity. It is not undue hardship to
require additional text on advertisements and constituents deserve to know who is attempting to
influence elections. Candidates and voters will be protected by requiring “paid for by” statements on
all candidate, committee, and outside group advertising. She also opposed raising the independent
expenditure threshold above $200.
Robbie Moreland stated using Denver and Colorado as benchmarks for the $1000 independent
expenditure amount is not accurate. The threshold for requiring independent expenditure reporting
should be as consequential in the state as it is in Fort Collins and noted $1000 can buy a great deal
of advertising in Fort Collins. She supported requiring “paid for by” statements on all independent
expenditure ads as well as candidate and issue committee ads because anonymous free speech
does not allow for the enforcement of reporting requirements, nor does is assure election integrity.
Sarah Pitts reported on the League of Women Voters assessment of money in elections, stating
campaign finance regulation should enhance political equality for all citizens, ensure transparency,
protect the representative democracy from distortion by big money, and combat corruption.
Jan Rossi suggested all candidates and committees should be required to report any expenditures
over $200 and requested “paid for by” statements be required for all campaign items.
Anne Thompson, League of Women Voters, discussed the importance of transparency in elections
and encouraged the Committee to listen to the speakers.
Councilmember Stephens thanked the speakers. She stated the City’s goals were to be in line with
the State of Colorado as much as possible. She noted money cannot be eliminated from politics.
Councilmember Cunniff thanked the speakers for their time and commitment to these issues.
City Attorney Daggett stated this item will go before Council on August 21 and September 4 for First
and Second Readings. She noted the Ordinance will include a blank for the independent expenditure
limit for Council to choose that amount.
ATTACHMENT 2
August 2, 2018
City of Fort Collins Page 2
3. APPROVAL OF JULY 5, 2018 COMMITTEE MEETING MINUTES
Councilmember Cunniff made a motion, seconded by Councilmember Stephens, to adopt the July 5,
2018 Committee meeting minutes. The motion was adopted by unanimous consent.
4. DISCUSSION ITEMS
Follow-up and Discussion of July 17, 2018 Council Work Session (independent expenditures
and paid for by requirements) and Further Recommendations
City Attorney Daggett noted the Ordinance coming forward with a blank for the independent
expenditure amount was part of the discussion at the Work Session. After examining this Code
Section, staff has determined that some language needs to be added and a new approach to
referencing committees needs to be developed. Other than those changes, the Ordinance is
conceptually the same as what was presented at the Work Session.
City Attorney Daggett stated requiring someone to report an expenditure as a committee and also as
an independent expenditure is overly confusing; therefore, the addition of the word “natural” will make
clear independent expenditures apply to individuals spending money not in coordination with the
candidate.
Councilmember Cunniff asked about the threshold for small scale issue committees. City Attorney
Daggett replied they must register as a small-scale issue committee at $200 and must start reporting
as an issue committee at $5,000.
City Attorney Daggett discussed case law related to small-scale issue committees and stated the
City’s language regarding them matches the State’s language.
Councilmember Stephens asked about the initial small-scale issue committee language. City
Attorney Daggett replied there was no dollar threshold for registration; as soon as any money was
spent, registration and reporting were required.
Councilmember Cunniff asked about corporations making expenditures to advocate for a certain
election outcome. City Attorney Daggett read the definition of an issue committee, which does
include corporations.
Councilmember Cunniff suggested using language related to a natural person and corporations and
other groups when discussing independent expenditures.
Chief Deputy City Clerk Knoll noted the reporting of independent expenditures does not include a
disclosure of contributions.
Councilmember Cunniff stated any party soliciting contributions has effectively created a committee.
Chief Deputy City Clerk Knoll suggested placing corporations back in under the definition of political
committee and allowing political committees to make independent expenditures.
City Attorney Daggett noted a corporation would not need to register as a committee unless they are
soliciting contributions.
Councilmember Cunniff stated the term “election outcome advocate” could be a good catch-all
reference.
City Attorney Daggett stated staff will look at the independent expenditure language with a focus on
not narrowing related to natural persons but focusing on existing persons or entities not taking
contributions. Staff will also look at ensuring any individual or entity taking contributions is a
committee.
August 2, 2018
City of Fort Collins Page 3
Councilmember Cunniff expressed concern the $5,000 amount for small-scale issue committees to
switch to full issue committees may be too high. Chief Deputy City Clerk Knoll replied committees are
required to go back to the beginning and report everything if they hit the $5,000 threshold. The plan
for independent expenditures is to have a check box that indicates the first report following the
expenditure of whatever amount Council deems fit. This would then require expenditures to be
reported from then on.
City Attorney Daggett stated Section 5 of the Ordinance is written to have the “paid for by”
requirement apply to any committee, including small-scale issue committees. As written, this
requirement does not apply to independent expenditures.
Councilmember Cunniff stated it would be important to include the requirement for independent
expenditures if the limit is set higher. He stated it would be more uniform to require the statement for
all expenditures.
City Attorney Daggett suggested having an exception. Councilmember Cunniff suggested having a
size requirement for materials, such as 10 square inches.
Assistant City Attorney Ryan Malarky stated the proposal is a condensed version of the federal “paid
for by” requirements.
City Attorney Daggett noted the “paid for by” requirement excludes apparel, as written. She reviewed
the minor changes to other sections of the Ordinance.
Staff discussed the formation of flow charts for committees.
Councilmember Cunniff suggested rephrasing one of the whereas statements regarding furthering the
City’s interest to furthering the public interest.
Education/Orientation
Councilmember Stephens asked about the formation of an educational component. Chief Deputy
City Clerk Knoll replied the Clerk’s Office will not be able to form a large educational outreach as the
focus is on material formation for this election and education for the next election.
Motion to amend Committee Recommendation
Councilmember Cunniff made a motion, seconded by Councilmember Stephens, that the Committee
recommend the independent expenditure amount be raised from $100 without specifying the new
amount and presenting a blank in the Ordinance. The motion was adopted by unanimous consent.
Chief Deputy City Clerk Knoll stated the minutes for this meeting could be posted as draft minutes
online as they will not be officially adopted until the Committee meets again after the election.
5. ADJOURNMENT
The meeting adjourned by unanimous consent at 1:15 PM.
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ORDINANCE NO. ___,113, 2018
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 7 OF THE CODE OF THE CITY OF FORT COLLINS
TO AMEND REQUIREMENTS AND PROCEDURES RELATED TO
CAMPAIGNS AND 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, including
Councilmembers Cunniff, Overbeck and Stephens, 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 the 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 adopt 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, and Ordinance No. 077, 2018, were considered and adopted by the Council to update various
provisions of Chapter 7; and
WHEREAS, the Committee continued to meet in 2017 and 2018, and has recommended
additional clarifications and amendments to Chapter 7; and
[RECITALS TO BE UPDATED BASED ON FINAL VERSION AND COMMITTEE ACTION
WHEREAS, the Committee has recommended that the threshold for reporting independent
expenditures be raised from $100 to $1,000a higher amount to be determined by City Council; and
WHEREAS, the Committee has recommended the creation of a new requirement that
committees otherwise required to register with the City also be required to include disclaimers on
campaign communications to identify the committee making the communication, whether the
communication is coordinated with a candidateparticular committee, and the source of funding for
the communication; and]
WHEREAS, staff has recommended that the definitions for candidate committee,
issue committee, and political committee be changed to require registration and reporting of those
persons that at a minimum accept contributions, rather than only applying to those persons that
accept contributions and make expenditures; and
WHEREAS, staff has recommended that the citizen complaint process for campaign
violations be changed to also apply to violations committed by individual persons, including
violations related to independent expenditures; and
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WHEREAS, staff has recommended changes to certain definitions in Code Section
7-132 in order to clarify the distinctions between the various types of campaign committees, and
to reconcile them with other amendments; and
WHEREAS, these amendments generally improve and clarify the City’s campaign finance
disclosure and election requirements and processes; and
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
balancingrespecting the speakers’ interest in freedom of political speech; and
WHEREAS, the Council desires to enact the recommendations of the Committee and staff
in order 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 the following definitions contained in Section 7-133132 of the Code
of the City of Fort Collins isare hereby amended, in the definition of “independent expenditure,”
to read as follows:
Sec. 7-132. Definitions.
. . .
Candidate committee shall mean a person, including the candidate, or persons with the
common purpose of receiving contributions and or making expenditures under the
authority of a candidate. A candidate shall have only one (1) 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) 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
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(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:
(1) Services provided without compensation by individuals volunteering their time on
behalf of a candidate, candidate committee, political committee, or issue committee or
small-scale issue committee;
(2) Funds collected subsequent to the election to pay the cost of a requested recount
pursuant to 7-46.
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, small-scale 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 or
small-scale issue committee if the person paying for the services is the regular employer of
the individual rendering the services and the services are solely for the purpose of ensuring
compliance with the provisions of this Article.
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 or small-scale 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 natural 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.
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Independent expenditure shall also include the payment of money by any natural
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.
Independent expenditure shall not include:
(1) 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;
or
(2) Expenditures made by small-scale issue committees; or
(23) Any news articles, editorial endorsements, opinion or commentary writings, or
letters to the editor printed in a newspaper, magazine or other periodical not owned or
controlled by the candidate, or communications other than advertisements posted or
published on the internet for no fee.
Section 3. That Section 7-133 of the Code of the City of Fort Collins is hereby
amended, in the definition of “political committee,” to read as follows:
PoliticalIssue committee shall mean two:
(1) Two (2) or more persons who are elected, appointed orchosen, 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 that are not coordinated
with a candidate or committee subject to the terms of this Article.
accepting contributions andor making expenditures to support or oppose any ballot
issue or ballot question; orPolitical committee shall not include:
(2) Any partnership committee, association, corporation, labor organization or other
organization or group of personsperson that has accepted contributions or made
expenditures to support or opposefor the purpose of supporting or opposing any
ballot issue or ballot question. For purposes of this Paragraph (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 cCandidate committees,
issue committees or small-scale issue committees, or candidate committees as
otherwise defined in this Section; or.
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. . .
Political committee shall mean:
(1) twoTwo (2) or more persons who are elected, appointed or chosen, or have
associated themselves, for the purpose of accepting contributions or making
expenditures to support or oppose one (1) or more candidatescontributions to candidate
committees, issue committees or other political committees, or for the purpose of
making independent expenditures.
(2) Any person that has accepted contributions for the purpose of supporting or
opposing one (1) or more candidates.
Political committee shall not include:
(1) Issue committees or candidate committees as otherwise defined in this Section;
or
(2) Any partnership, committee, association, corporation, labor organization or
other organization or group of persons previously established for a primary purpose
outside of the scope of this Article.
Political message
. . .
Unexpended campaign contributions shall mean a message delivered by telephone,
any print or electronic media or other written material which advocates the
election or defeatbalance of funds on hand in any candidate or which unambiguously
referscommittee, issue committee, or political committee or small-scale issue committee
following an election, less the amount of all unpaid monetary obligations incurred prior to
suchthe election.
Section 3. That Section 7-134 (c) and (d) of the Code of the City of Fort Collins are
hereby amended to read as follows:
Sec. 7-134. - Registration of committees; termination.
. . .
(c) Any candidate. committee, political committee, or issue committee or registered
small-scale issue committee that has registered with the City Clerk, but has not engaged in
any election activities or reported any contributions accepted or expenditures made, may
terminate at any time by filing an amended committee registration indicating the nature of
the amendment is termination of the committee and verifying that no contributions have
been received or expenditures made since registration occurred pursuant to § 7-134.
Alternatively, the committee shall file a campaign report indicating no contributions have
been received or expenditures made, and indicating it is a termination report.
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Section 4 (d) Any political committee, or issue committee or registered small-scale issue
committee that has not taken the necessary steps to terminate pursuant to Subsection (c)
above must have properly disposed of all funds and must file a termination report no later
than seventy (70) days after the election.
Section 4. That Section 7-135(b), (d) and (g) of the Code of the City of Fort Collins
are hereby amended to read as follows:
Sec. 7-135. Campaign contributions/expenditures.
. . .
(b) 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, issue committee
or political committee shall knowingly accept a contribution made in violation of this
Subsection (b).
. . .
(d) No candidate committee, issue committee, small-scale 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.
. . .
(g) Reimbursements prohibited. No person shall make a contribution 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 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 by a candidate committee pursuant to § 7-135(a)(4)(c) shall not be considered
a reimbursement.
Section 5. That Section 7-135 of the Code of the City of Fort Collins is amended to
add a new subsection (h), to read as follows:
Sec. 7-135. Campaign contributions/expenditures.
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. . .
(h) A candidate committee, issue committee, small-scale issue committee or political
committee shall not coordinate its expenditures with any other such committee in a manner
that circumvents any restrictions or limitations on campaign contributions, expenditures or
reporting set forth in this Article.
Section 6. That Section 7-136(g) and (i) of the Code of the City of Fort Collins are
hereby amended to read as follows:
Sec. 7-136. Disclosure; filing of reports.
. . .
(g) Any report that is deemed by the City Clerk to be incomplete or inconsistent with
the requirements of this Article shall be accepted on a conditional basis, and the
committee’s registered agent 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’s registered agent
treasurer shall have seven (7) business days from the date of delivery of such notice to file
an amended report that cures the deficiencies. Any such amended report shall supersede
the original report filed for the reporting period.
. . .
(i) Except as specified in this Subparagraph (i), the disclosure requirements specified
in this ArticleSection 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 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:
Section 7. 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.
Any natural person, excluding a committee required to register under this Article, or
political committee who makes making independent expenditures in connection with all
City of Fort Collins matters on any particular ballot totaling in the aggregate more than one
hundred dollars ($100.) nine hundred ninety-nine _______________dollars
($999.)($_____.) shall report any such independent expenditures made after that threshold
is met to the City Clerk on a form provided by the City Clerk deliver notice in writing of
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such independent expenditures to the City Clerk no later than three (3) business days after
the day that such funds are obligated to pay for said independent expenditure. Said notice
shall include the following information, together with any other information required:
. . .
Section 58. That reserveda new Section 7-140 of the Code of the City of Fort Collins is
hereby amendedadopted, to read as follows:
Sec. 7-140. Responsibility for communications.
(a) Whenever a candidate, candidate committee, issue committee, political committee
or registered small-scale issue committee makes an expenditure for the purpose of
financing communications expressly advocating a particular result in an election, or solicits
any contribution or contribution in-kind through any broadcasting station, newspaper,
magazine, outdoor advertising facility, direct mailing or any other type of general public
political advertising, such communication if paid for or authorized by a candidate,
candidate committee, issue committee, political committee, registered small-scale issue
committee, or any agent for the same, shall clearly state that the communication is paid for
by that candidate, candidate committee, issue committee, political committee or registered
small-scale issue committee.
(b) In regard to the different forms of communication set forth in subsection (a) of this
Section 7-140, “communication” shall include, but shall not be limited to:
(1) Websites or social media of a candidate, candidate committee, issue
committee, political committee or registered small-scale issue committee available
to the general public; and
(2) Advertisements placed for a fee on another person’s website or social
media.
(c) The statement required by this Section 7-140 must be clear and conspicuous in the
communication. The statement required herein shall not apply to communications where
including the statement would be impractical, such as:
(1) Bumper stickers, pins, buttons, pens and similar small items upon which the
disclaimer cannot be conveniently printed;
(2) Skywriting, water towers, wearing apparel, or other means of displaying an
advertisement of such a nature that the inclusion of a disclaimer would be
impracticable; or
(3) Checks, receipts, and similar items of minimal value that are used for purely
administrative purposes and do not contain a political message.
FOR ELECTION CODE COMMITTEE FOR DISCUSSION PURPOSES ONLY
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(d) Nothing herein shall be deemed to alleviate any person from complying with
federal campaign finance law, as applicable.
Section 69. That Section 7-141(b) 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.
. . .
(b) Any radio or television station, newspaper, internet advertiser or website provider,
social media provider or periodical that charges an issue committee, small-scale issue
committee or candidate committee a lower rate for use of space, materials or services than
the rate such station, newspaper, internet advertiser or website provider, social media
provider or periodical or supplier charges another issue committee or candidate committee
for the same ballot measure or public office for comparable use of space, materials or
services shall report the difference in such rate as a contribution in kind to the issue
committee or candidate committee that is charged such lower rate.
. . .
Section 10. 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.
(a) Any candidate or registered elector of the City ("complainant") who has reason to
believe a violation of Chapter 7, Article V, of this Code, has occurred by any person,
candidate, candidate committee, issue committee, small-scale issue committee or political
committee may file a written complaint to the City Clerk, no later than sixty (60) days after
the alleged violation has occurred.
. . .
Introduced, considered favorably on first reading, and ordered published this 17th21st day
of JuneAugust, A.D. 2018, and to be presented for final passage on the 21st4th day of
AugustSeptember, A.D. 2018.
__________________________________
Mayor
ATTEST:
_____________________________
FOR ELECTION CODE COMMITTEE FOR DISCUSSION PURPOSES ONLY
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_______________________________
City Clerk
FOR ELECTION CODE COMMITTEE FOR DISCUSSION PURPOSES ONLY
-11-
Passed and adopted on final reading on this 21stthe 4th day of AugustSeptember, A.D. 2018.
__________________________________
__________________________________
Mayor
ATTEST:
_____________________________
_______________________________
City Clerk
August 21, 2018
Election Code Amendments
Delynn Coldiron, City Clerk; Rita Knoll, Chief Deputy City Clerk
Carrie Daggett, City Attorney
ATTACHMENT 4
Proposed Changes
• Independent Expenditure Reporting
• “Paid for By” Disclaimers
• Change in Requirements for Registering Committees
• Independent Expenditure Violations
• Clean-Up Items
2
Proposed Code Amendments
3
Issue Recommended Action
1. Independent Expenditure
Reporting Threshold
2. Paid for By Disclaimer
Adopt Code language changing threshold
requirement from $100 to a higher amount as
determined by Council.
Adopt Code language that:
• Requires this for registered committees.
• Does not include Independent
expenditures.
Incremental approach will allow review of impacts
before expanding requirement.
Proposed Code Amendments
4
Issue Recommended Action
4. Change in Requirements
for Registering
Committees
5. Independent Expenditure
Violations
6. Clean-Up Items
• Adopt proposed changes that:
• Eliminate overlap between committees.
• Clarify the definition of Political and Issue
Committees.
• Adopt Code language to ensure failure to report
independent expenditures is covered under
complaint process provisions.
• Adopt recommendations to clarify and reconcile
conflicts.
Committees
5
Image from showmeinstitute.org
• Must register.
• Contributions/expenditures under authority of a candidate.
• One committee per candidate.
• Limits on contributions accepted per person.
• Reporting required on any monies received or expended.
Candidate
Committee
• Must register.
• Two or more persons associated to take contributions or make
expenditures.
• Any person (defined by Article) that accepts contributions.
• Contributions/expenditures only to support or oppose candidates.
• Reporting required on any monies received or expended.
Political
Committee
Committees
6
Image from showmeinstitute.org
• Must register.
• 2 or more persons associated to take contributions or make
expenditures.
• A person (defined by Article) that takes contributions.
• Contributions/expenditures to support or oppose any ballot issue or ballot
question.
• Reporting required on any monies received or expended.
Issue
Committee
(Not Small Scale)
• Requires registration only after contributions/expenditures exceed $200.
• Contributions/expenditures limited to $5,000 or less.
• Contributions/expenditures to support or oppose any ballot issue or ballot
question.
• No reporting is required on any monies received or expended.
Small-
Scale
Issue
Committee
Enforcement
7
Image from showmeinstitute.org
Questions
THANK YOU!
8
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ORDINANCE NO. 113, 2018
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 7 OF THE CODE OF THE CITY OF FORT COLLINS
TO AMEND REQUIREMENTS AND PROCEDURES RELATED TO
CAMPAIGNS AND 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, including
Councilmembers Cunniff, Overbeck and Stephens, 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 the 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 adopt 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, and Ordinance No. 077, 2018, were considered and adopted by the Council to update
various provisions of Chapter 7; and
WHEREAS, the Committee continued to meet in 2017 and 2018, and has recommended
additional clarifications and amendments to Chapter 7; and
WHEREAS, the Committee has recommended that the threshold for reporting
independent expenditures be raised from $100 to a higher amount to be determined by City
Council; and
WHEREAS, the Committee has recommended the creation of a new requirement that
committees otherwise required to register with the City also be required to include disclaimers on
campaign communications to identify the committee making the communication, whether the
communication is coordinated with a particular committee, and the source of funding for the
communication; and
WHEREAS, staff has recommended that the definitions for candidate committee, issue
committee, and political committee be changed to require registration and reporting of those
persons that at a minimum accept contributions, rather than only applying to those persons that
accept contributions and make expenditures; and
WHEREAS, staff has recommended that the citizen complaint process for campaign
violations be changed to also apply to violations committed by individual persons, including
violations related to independent expenditures; and
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WHEREAS, staff has recommended changes to certain definitions in Code Section 7-132
in order to clarify the distinctions between the various types of campaign committees, and to
reconcile them with other amendments; and
WHEREAS, these amendments generally improve and clarify the City’s campaign
finance disclosure and election requirements and processes; and
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 speakers’ interest in freedom of political speech; and
WHEREAS, the Council desires to enact the recommendations of the Committee and
staff in order 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 the following definitions 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.
. . .
Candidate committee shall mean a person, including the candidate, or persons with the
common purpose of receiving contributions and or making expenditures under the
authority of a candidate. A candidate shall have only one (1) 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) 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
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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:
(1) Services provided without compensation by individuals volunteering their time on
behalf of a candidate, candidate committee, political committee, or issue committee or
small-scale issue committee;
(2) Funds collected subsequent to the election to pay the cost of a requested recount
pursuant to 7-46.
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, small-scale 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 or small-scale issue committee if the person paying for the services is the
regular employer of the individual rendering the services and the services are solely for
the purpose of ensuring compliance with the provisions of this Article.
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 or small-scale
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, 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
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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.
Independent expenditure shall not include:
(1) 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; or
(2) Expenditures made by small-scale issue committees; or
(23) Any news articles, editorial endorsements, opinion or commentary writings, or
letters to the editor printed in a newspaper, magazine or other periodical not owned or
controlled by the candidate, or communications other than advertisements posted or
published on the internet for no fee.
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 andor 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 personsperson that has accepted contributions or made
expenditures to support or opposefor the purpose of supporting or opposing any
ballot issue or ballot question. For purposes of this Paragraph (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, small-scale issue committees, or
candidate committees as otherwise defined in this Section.
. . .
Political committee shall mean:
(1) twoTwo (2) or more persons who are elected, appointed or chosen, or have
associated themselves, for the purpose of accepting contributions or making
expenditures to support or oppose one (1) or more candidatescontributions to
candidate committees, issue committees or other political committees, or for the
purpose of making independent expenditures.
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(2) Any person that has accepted contributions for the purpose of supporting or
opposing one (1) or more candidates.
Political committee shall not include:
(1) Issue committees or candidate committees as otherwise defined in this
Section; or
(2) Any partnership, committee, association, corporation, labor organization or
other organization or group of persons previously established for a primary purpose
outside of the scope of this Article.
. . .
Unexpended campaign contributions shall mean the balance of funds on hand in any
candidate committee, issue committee, or political committee or small-scale issue
committee following an election, less the amount of all unpaid monetary obligations
incurred prior to the election.
Section 3. That Section 7-134 (c) and (d) of the Code of the City of Fort Collins are
hereby amended to read as follows:
Sec. 7-134. - Registration of committees; termination.
. . .
(c) Any candidate committee, political committee, or issue committee or registered
small-scale issue committee that has registered with the City Clerk, but has not engaged
in any election activities or reported any contributions accepted or expenditures made,
may terminate at any time by filing an amended committee registration indicating the
nature of the amendment is termination of the committee and verifying that no
contributions have been received or expenditures made since registration occurred
pursuant to § 7-134. Alternatively, the committee shall file a campaign report indicating
no contributions have been received or expenditures made, and indicating it is a
termination report.
(d) Any political committee, or issue committee or registered small-scale issue
committee that has not taken the necessary steps to terminate pursuant to Subsection (c)
above must have properly disposed of all funds and must file a termination report no later
than seventy (70) days after the election.
Section 4. That Section 7-135(b), (d) and (g) of the Code of the City of Fort Collins
are hereby amended to read as follows:
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Sec. 7-135. Campaign contributions/expenditures.
. . .
(b) 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, issue
committee or political committee shall knowingly accept a contribution made in violation
of this Subsection (b).
. . .
(d) No candidate committee, issue committee, small-scale 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.
. . .
(g) Reimbursements prohibited. No person shall make a contribution 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 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 by a candidate committee pursuant to § 7-135(a)(4)(c) shall not be
considered a reimbursement.
Section 5. That Section 7-135 of the Code of the City of Fort Collins is amended to
add a new subsection (h), to read as follows:
Sec. 7-135. Campaign contributions/expenditures.
. . .
(h) A candidate committee, issue committee, small-scale issue committee or political
committee shall not coordinate its expenditures with any other such committee in a
manner that circumvents any restrictions or limitations on campaign contributions,
expenditures or reporting set forth in this Article.
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Section 6. That Section 7-136(g) and (i) of the Code of the City of Fort Collins are
hereby amended to read as follows:
Sec. 7-136. Disclosure; filing of reports.
. . .
(g) Any report that is deemed by the City Clerk to be incomplete or inconsistent with
the requirements of this Article shall be accepted on a conditional basis, and the
committee’s registered agent 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’s registered
agent treasurer shall have seven (7) business days from the date of delivery of such notice
to file an amended report that cures the deficiencies. Any such amended report shall
supersede the original report filed for the reporting period.
. . .
(i) Except as specified in this Subparagraph (i), the disclosure requirements specified
in this ArticleSection 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 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:
Section 7. 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.
Any person, excluding a committee required to register under this Article, or political
committee who makes making independent expenditures in connection with any
particular ballot totaling in the aggregate more than one hundred dollars ($100.)
_______________dollars ($_____.) shall report any such independent expenditures made
after that threshold is met to the City Clerk on a form provided by the City Clerk 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 to pay for said independent
expenditure. Said notice shall include the following information, together with any other
information required:
. . .
Section 8. That a new Section 7-140 of the Code of the City of Fort Collins is hereby
adopted, to read as follows:
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Sec. 7-140. Responsibility for communications.
(a) Whenever a candidate, candidate committee, issue committee, political committee
or registered small-scale issue committee makes an expenditure for the purpose of
financing communications expressly advocating a particular result in an election, or
solicits any contribution or contribution in-kind through any broadcasting station,
newspaper, magazine, outdoor advertising facility, direct mailing or any other type of
general public political advertising, such communication if paid for or authorized by a
candidate, candidate committee, issue committee, political committee, registered small-
scale issue committee, or any agent for the same, shall clearly state that the
communication is paid for by that candidate, candidate committee, issue committee,
political committee or registered small-scale issue committee.
(b) In regard to the different forms of communication set forth in subsection (a) of
this Section 7-140, “communication” shall include, but shall not be limited to:
(1) Websites or social media of a candidate, candidate committee, issue
committee, political committee or registered small-scale issue committee
available to the general public; and
(2) Advertisements placed for a fee on another person’s website or social
media.
(c) The statement required by this Section 7-140 must be clear and conspicuous in the
communication. The statement required herein shall not apply to communications where
including the statement would be impractical, such as:
(1) Bumper stickers, pins, buttons, pens and similar small items upon which
the disclaimer cannot be conveniently printed;
(2) Skywriting, water towers, wearing apparel, or other means of displaying
an advertisement of such a nature that the inclusion of a disclaimer would be
impracticable; or
(3) Checks, receipts, and similar items of minimal value that are used for
purely administrative purposes and do not contain a political message.
(d) Nothing herein shall be deemed to alleviate any person from complying with
federal campaign finance law, as applicable.
Section 9. That Section 7-141(b) 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.
. . .
-9-
(b) Any radio or television station, newspaper, internet advertiser or website provider,
social media provider or periodical that charges an issue committee, small-scale issue
committee or candidate committee a lower rate for use of space, materials or services
than the rate such station, newspaper, internet advertiser or website provider, social
media provider or periodical or supplier charges another issue committee or candidate
committee for the same ballot measure or public office for comparable use of space,
materials or services shall report the difference in such rate as a contribution in kind to
the issue committee or candidate committee that is charged such lower rate.
. . .
Section 10. 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.
(a) Any candidate or registered elector of the City ("complainant") who has reason to
believe a violation of Chapter 7, Article V, of this Code, has occurred by any person,
candidate, candidate committee, issue committee, small-scale issue committee or political
committee may file a written complaint to the City Clerk, no later than sixty (60) days
after the alleged violation has occurred.
. . .
Introduced, considered favorably on first reading, and ordered published this 21st day of
August, A.D. 2018, and to be presented for final passage on the 4th day of September, A.D.
2018.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
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Passed and adopted on final reading on the 4th day of September, A.D. 2018.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk