Loading...
HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 09/01/2020 - FIRST READING OF ORDINANCE 112, 2020, AMENDING SEC Agenda Item 14 Item # 14 Page 1 AGENDA ITEM SUMMARY September 1, 2020 City Council STAFF Delynn Coldiron, City Clerk Rita Knoll, Chief Deputy City Clerk Ryan Malarky, Legal SUBJECT First Reading of Ordinance No. 112, 2020, Amending Section 7-135 of the Code of the City of Fort Collins to Modify and Update Requirements and Procedures for Campaigns in City Elections. EXECUTIVE SUMMARY The purpose of this item is to consider proposed amendments to the City’s election campaign Code provisions. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. 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 (the Election Code Committee or ECC) for the purpose of identifying and evaluating ideas for improvements to City election laws and practices and anticipating adjustments that m ay be needed to adapt to a rapidly changing legal and technological environment. Mayor Troxell and Councilmembers Pignataro and Summers are the current members of the ECC. Councilmember Pignataro serves as the Chair. At the August 25, 2020 Work Session, Council reviewed recommended changes to Chapter 7 of the Code of the City of Fort Collins related to campaigns and campaign finance in City elections from the Election Code Committee. The items contained in this Ordinance represent the items the Election Code Committee did not reach consensus on. A work session summary is attached. (Attachment 1). A summary of the proposed amendments follows: Regulation of Limited Liability Company (LLC) Contributions: Members of the public attending ECC meetings expressed some interest in aligning local City Code provisions with state law regarding the reporting of contributions by limited liability companies (LLCs). The ECC discussed such regulations and, while not coming to a consensus about whether to support the m, the ECC determined it was appropriate to forward the matter to Council for its consideration. Under City provisions, an LLC is considered a “person”, separate and distinct from a natural person. As such, a natural person can make the maximum allowed contribution to a candidate committee, and an LLC, of which the natural person is a member, may also make the maximum contribution to a candidate committee. Under state law, contributions from an LLC must be accompanied by a written statement that includes , among other things, information on how the contribution is attributed among the LLC members. The attribution to an individual member of the LLC then counts toward the aggregate contribution limit of the individual as a person. Agenda Item 14 Item # 14 Page 2 Limitation of Contributions to Political Committees: Members of the public attending ECC meetings expressed some interest in limiting contributions to political committees, similar to provisions in state law. Under state law, political committees support or oppose candidates and must register with the Secretary of State except in limited circumstances. Political committees may not accept more than $625 per contributor every two years. This two -year time period is not based on the calendar year but is instead tied to the state House of Representatives election cycle. Political committees may contribute to candidates subject to specific contribution limits for each public office. Political committees may also contribute a limited amount to other political committees and may d onate an unlimited amount to independent expenditure committees. The City Code currently does not limit contributions to a political committee but does not allow a political committee to make direct contributions to any type of committee. A political com mittee may only accept contributions or make expenditures to support or oppose one or more candidates. In addition, a political committee is prohibited from coordinating its expenditures with any other committee defined in the Code in a manner that circumv ents any Code restrictions or limitations on campaign contributions, expenditures or reporting. After discussion of this issue, the ECC did not take a position on it. In this Ordinance, the limit for contributions to political committees is set at $100 per person, which is the same limit applicable to contributions to mayoral candidates. A comparison chart is attached giving more information on the various types of committees the Code allows and some related information. (Attachment 2). A detailed memo previously given to Council providing clarification regarding the participation of political action committees and 527 groups in City elections and relationship to City political committees is also attached. (Attachment 3). 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 on topics on the agenda and other items of interest. Draft minutes from these meetings are attached. (Attachment 4) ATTACHMENTS 1. Work Session Summary (PDF) 2. Campaign Committees Chart (PDF) 3. Political Committees Memo (PDF) 4. Election Code Committee Minutes (PDF) City Clerk 300 LaPorte Avenue PO Box 580 Fort Collins, CO 80522 970.221.6515 970.221.6295 - fax fcgov.com MEMORANDUM DATE: August 27, 2020 TO: Mayor Troxell and City Councilmembers THRU: Darin Atteberry, City Manager Kelly DiMartino, Deputy City Manager FROM: Delynn Coldiron, City Clerk RE: 08-25-2020 Work Session Summary: Possible Election Code Amendments Councilmembers Present: Mayor Troxell, Mayor Pro Tem Stephens, Councilmembers Cunniff, Pignataro, Gorgol, Gutowsky and Summers. Overview: Staff presented recommendations from the Election Code Committee (ECC) on proposed election-related Code amendments, including: 1.Elimination of non-itemized contributions 2.Use of unexpected city campaign funds in non-city elections 3.Carry-over of Candidate Committee contributions to the next election cycle 4.Changes to the campaign finance violation process Staff also presented information about two issues that had been discussed by the ECC for which no recommendation had been made: 5.Regulation of Limited Liability Company contributions 6.Limitation of contributions to Political Committees Staff also presented one “clean up” change that had not been considered by the ECC: 7.Financial Disclosure statement filing Council Discussion: Most Councilmembers expressed full agreement with all items that the ECC had reached consensus on. Those items will move forward as part of the Consent Agenda at the next regular meeting. Councilmembers asked for an additional opportunity to discuss regulation of Limited Liability Company contributions and placing limitations on contributions to Political Committees. They requested that these items move forward under a separate ordinance and be placed on the Discussion Agenda as soon as possible. Council was appreciative of the work that had been done by the ECC and staff related to these items. They particularly liked the new civil penalty process that allows for less severe consequences for most campaign violations. DocuSign Envelope ID: AA984188-C2CE-4739-A8EC-F629660FE8B1 ATTACHMENT 1 Work Session Follow Up – Election Code Items August 27, 2020 Page 2 Follow Up: Staff plans to bring both ordinances to Council at their September 1, 2020 regular meeting. Discussion on potential Charter changes are planned for the December 8, 2020 Work Session. DocuSign Envelope ID: AA984188-C2CE-4739-A8EC-F629660FE8B1 CAMPAIGN COMMITTEE COMPARISONS Category Definition - Purpose Registration Required? Reports Required? “Paid for By” Required? Candidate Committee One or more persons for common purpose of receiving contributions or making expenditures under authority of candidate; open and active until terminated. YES YES YES Political Committee Two or more persons associated for common purpose of accepting contributions or making contributions to support or oppose one or more candidates OR Any person accepting contributions for that purpose. YES YES YES Small-Scale Issue Committee Two or more persons associated for common purpose of accepting contributions or making contributions to support or oppose any ballot issue or ballot question OR Any person accepting contributions for that purpose. NO until $200 rec’d or spent NO until $200 rec’d or spent NO until $200 rec’d or spent Issue Committee Two or more persons associated for common purpose of accepting contributions or making contributions to support or oppose any ballot issue or ballot question OR Any person accepting contributions for that purpose. YES YES YES Independent Expenditure Payment of money by other than a committee to advocate the election, defeat or recall of a candidate or supporting or opposing a ballot issue or ballot question. (Excludes news articles or other unpaid public media, expenditures in the regular course of scope of business by an organization to its members/employees.) NO NO YES, if total more than $250 ATTACHMENT 2 June 25, 2020 TO: Mayor Troxell and City Councilmembers THRU:'DULQ$WWHEHUU\&LW\0DQDJHU Kelly DiMartino, Deputy City Manager &DUULH'DJJHWW$WWRUQH\ FROM: Ryan Malarky, Assistant City Attorney Delynn Coldiron, City Clerk RE: Clarification regarding the participation of political action committees and 527 groups in City elections and relationship to City “political committees” This memorandum responds to questions raised by City Council at its June 2, 2020, meeting and subsequently discussed briefly by the Election Code Committee at its June 5, 2020, meeting. At the June 2nd Council meeting, some Councilmembers mentioned “political action committees” and “527 groups,” and Councilmembers asked for clarification about what the City Code requires with respect to the participation of political action committees and 527 groups in City elections. There was also a request for clarification as to whether the Code contains limits on contributions to political committees and whether political committees can coordinate with candidate committees. The Bottom Line provides answers to these specific questions, while the Discussion provides an overview of the Code requirements for political committees. In addition, a chart outlining the types of committees established under the City’s campaign finance provisions and related requirements and restrictions is attached. The City Clerk’s Office and the City Attorney’s Office will keep these questions in mind and suggest additional clarifying Code language as Code changes are prepared for City Council this summer. Bottom Line: 1. A “political action committee” (“PAC”) is an entity regulated at the federal level by the Federal Elections Commission. The term encompasses several different types of committees or associations, including but not limited to separately segregated funds of corporations or labor organizations, Super PACs, and Leadership PACs. The State of Colorado does not expressly y           ATTACHMENT 3 City Attorney’s Office 300 Laporte Avenue PO Box 580 Fort Collins, CO 80522 970.221.6520 970.221.6327 fcgov.com City Clerk 300 LaPorte Avenue PO Box 580 Fort Collins, CO 80522 970.221.6515 fcgov.com/cityclerk Mayor Troxell and City Councilmembers June 25, 2020 Page 2 of 4 regulate PACs. However, to the extent a PAC’s conduct meets the state definition of a political committee, the PAC must register and comply with requirements for political committees. “527 groups” are political organizations that are tax-exempt under the federal Internal Revenue Code, and which are organized to support or oppose candidates. In certain instances, the State does require 527 groups to register as “political organizations.” The City Code does not specifically address PACs or 527 groups. However, to the extent PACs or 527 groups involve themselves in City elections and their conduct meets the City Code’s definition of a political committee, the Code requires that such organizations register and comply with the reporting requirements for a political committee. If a group does not fall within the City’s definition of “political committee”, expenditures in City elections would fall under the requirements for independent expenditures. 2. The City Code establishes various types of campaign committees, including “political committees” and does not limit the amount of contribution that can be made to political committees. 3. City Code Section 7-135(h) prohibits candidate committees, issue committees, small-scale issue committees and political committees from coordinating expenditures with other such committees in a way to avoid the restrictions on campaign contributions, expenditures or reporting. In addition, the Code amendments in 2018 were intended to preclude contributions by political committees to other committees. Because it would likely be helpful to include a more explicit statement in the Code that political committees are prohibited from coordinating campaign efforts with candidate committees and from making contributions to other committees, additional language reinforcing this prohibition will be included as part of upcoming amendments to the campaign finance provisions planned for later this summer. Discussion: The Colorado Fair Campaign Practices Act (“FCPA”) was enacted at the state level in January 1997, replacing the former Campaign Reform Act. The focus of campaign regulations in state law has historically been written with a focus on the regulation of state candidates, followed by county candidates. Many of the provisions of the FCPA are not relevant to municipal candidates. In November 2000, the City of Fort Collins, as a home-rule municipality, adopted its own campaign finance laws in lieu of those contained in state law. It was the stated intent of the City Council to “entirely occupy the field of regulating the conduct of City elections and . . . 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.” At the time, the local laws were modeled after language contained in the FCPA, excluding provisions, or portions thereof, that were not relevant in municipal campaigns.            Mayor Troxell and City Councilmembers June 25, 2020 Page 3 of 4 Local Definition of Political Committee When City’s campaign laws were enacted in 2000, the definition of “political committee” in the City Code read as follows: 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. This language mirrored the original definition in the FCPA with the exclusion of a reference to political parties. The definition remained unaltered in the City Code until September 2018 when it was amended in the following manner: 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. The 2018 amendments were intended to better define a political committee and remove any overlap with other committees or types of expenditures. In particular, the 2018 amendments: x Made clear that two or more persons who either take contributions or make expenditures to support or oppose candidates must register as a political            Mayor Troxell and City Councilmembers June 25, 2020 Page 4 of 4 committee. Previously, registration was not required until such persons received contributions and made expenditures. x Made clear that any person that accepts contributions to support or oppose candidates must register. The Code broadly defines a person as any individual, partnership, committee, association, corporation, labor organization or other organization or group of persons. x Made clear that candidate committees will not also be considered political committees. x Removed the language allowing political committees to make contributions to other committees. x Limited activities of a political committee to supporting or opposing candidates. x Eliminated the ability of political committees to make independent expenditures. x Removed language that excluded from the registration requirements 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 the City’s campaign regulations from the definition of political committee. City Code Section 7-135(h) prohibits candidate committees, issue committees, small-scale issue committees, and political committees from coordinating expenditures with other such committees to circumvent any restrictions or limitations in the Code on campaign contributions, expenditures or reporting requirements. Independent expenditures are, by their definition, not coordinated with a candidate committee. The same holds true in the FCPA and related provisions in the Colorado Constitution. The Colorado Constitution does set a limit on contributions that can be made to, and accepted by candidate committees, including contributions made by political committees, under the State campaign finance regulatory system. Since the City does not allow political committees to make contributions to candidate committees, there is no direct comparison. Both the Colorado Constitution and City Code allow political committees to make direct expenditures supporting candidates. In order to make more explicit both of these points (both coordination by political committees and payments by political committees to other committees are prohibited), staff will include language to that effect in the Code amendments coming forward later this summer for Council’s consideration. Attachment            COMPARISON OF VARIOUS TYPES OF COMMITTEES FOR ELECTION PURPOSES Definition Registration required? Required to File Campaign Finance Reports? Can Accept Contributions? Can Make Contributions to Other Committees? Can Make Expenditures? Subject to “Paid for By” requirement? Candidate Committee A person, including the candidate, or persons with the common purpose of receiving contributions 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. Yes Yes Yes Councilmember candidate- $75/person Mayoral candidate- $100/person No Yes Yes Political Committee (1) Two (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 candidates. (2) Any person that has accepted contributions for the purpose of supporting or opposing one (1) or more candidates. Political committee shall not include candidate committees as otherwise defined in this Section. Yes Yes Yes No Yes Yes Small-scale Issue Committee A committee otherwise meeting the definition of issue committee that has accepted or made contributions or expenditures in an amount that does not exceed five thousand dollars ($5,000.) during an applicable election cycle for the major purpose of supporting or opposing any ballot issue or ballot question. Once a small-scale issue committee accepts contributions/makes expenditures in excess of $5,000, the small-scale issue committee must register as an issue committee and file reports about the contributions or expenditures it has made or received since the beginning of its existence as a small-scale issue committee. (See Issue Committee) Not until it accepts contributions/makes expenditures in an aggregate amount that exceeds $200 Not until it accepts contributions/makes expenditures in an aggregate amount that exceeds $5000 (and then they become an issue committee) Yes No Yes Not until it accepts contributions/makes expenditures in an aggregate amount between $200 and $5000 Issue Committee (1) Two (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 any ballot issue or ballot question; or (2) Any person that has accepted contributions for the purpose of supporting or opposing any ballot issue or ballot question. Issue committee shall not include small-scale issue committees as otherwise defined in this Section. Yes Yes Yes No Yes Yes Person making an Independent Expenditure Independent expenditure means 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 includes expenditures for political messages which unambiguously refer to any specific public office or candidate for such office. Independent expenditure also includes the payment of money by any person for supporting or opposing a ballot issue or ballot question that is not controlled by, or coordinated with, an issue committee or a small-scale issue committee. Independent expenditure shall include, but not be limited to, advertisements placed for a fee on another person's website or advertisement space provided for no fee or a reduced fee where a fee ordinarily would have been charged. Independent expenditure shall not include: (1) Expenditures made by persons in the regular course and scope of their business and political messages sent solely to their members; (2) Expenditures made by small-scale issue committees; or (3) 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 pu blished on the internet for no fee. No Yes When expenditures total in the aggregate more than $250 No No Yes Yes When expenditures total in the aggregate more than $250 Person means any individual, partnership, committee, association, corporation, labor organization or other organization or group of person s. City of Fort Collins Page 1 September 6, 2019 ELECTION CODE COMMITTEE MEETING 3:30 PM COUNCILMEMBERS PRESENT: Troxell, Pignataro, Summers (via telephone), STAFF PRESENT: Ryan Malarkey, Delynn Coldiron, Rita Knoll, Sara Gonzales CITIZENS PRESENT: Marge Norskog, Jody Deschenes, Robbie Moreland, Roxanne Griffin, Dale Karchin, Suzanne Trask, David Turk, Kathryn Secor, Mike Feldhousen, Karen Wagner, Jen Rossi 1.CALL MEETING TO ORDER Mayor Troxell called the meeting to order. 2.ELECTION OF COMMITTEE CHAIR Councilmember Pignataro expressed interest in being the Committee Chair. Mayor Troxell and Councilmember Summers accepted the nomination. 3.CITIZEN COMMENT Marge Norskog discussed the role of the City Clerk's Office in elections-to cover the election process and two election management tasks: to answer questions when asked and to take action if a report is not filed on time. She noted the Office was denied additional funding in 2019 to expand election management. She discussed the 18 complaints she and others filed in the April 2019 election, all of which were based on observations. Moving forward, Ms. Norskog stated small scale issue committees should be required to report the zero to $199 spent once they reach the $200 threshold that requires reporting. Independent expenditures under $250 are currently exempt from “paid for by” requirements, which causes a loophole in anonymous speech. Additionally, someone convicted of a felony who has since had their voting rights restored should be able to run for Council and suggested the election software be able to accommodate online reporting by campaigns and committees and support ranked choice voting. Robbie Moreland stated it is important that consistent oversight is given to ensure election code is being followed. She reviewed financial disclosures for the past three April elections and requested the Committee consider addressing non-itemized contributions or donations under $20 to clarify their proper use and purpose. She requested the Committee address campaign donations from LLCs. She would like the City's Election Code to match that of the state in order to ensure that individuals no longer have an advantage over others through the use of multiple LLCs. Karen Wagner expressed concern about low voter turnout and questioned why the Committee has gone so long without meeting. She requested the Committee have a regular monthly meeting. Jan Rossi expressed concern there is no campaign compliance oversight. Roxanne Griffin stated the citizens of Fort Collins have the right to know who is paying for political advertisements, including independent expenditures. Transparency plays a key role in a voter's ability to evaluate the merits of political campaign messaging. She requested the Committee consider future steps needed to ensure transparency and compliance with Election Codes. Jody Deschenes requested the Committee address guidelines for election office employment or ineligibility thereof. She would like to help elevate the City's election process and stated there should be a higher standard of transparency. She discussed her group’s three areas of focus: independent, fair, and transparent redistricting, ranked choice voting, and taking any and all measures necessary to mitigate the negative influence of money on campaigns, elections, and government. She will be submitting three resolutions related to these issues. Councilmember Summers thanked the citizens who spoke and stated requiring “paid for by” statements on web pages and social media is a way to catch people doing misdeeds. He suggested the focus needs to be on other issues. He stated Fort Collins' $75 maximum contribution limit may be lowest of any city in ATTACHMENT 4 City of Fort Collins Page 2 Colorado; therefore, transparency concerns should focus more on flyers and robocalls. He would support on-line reporting but opposed ranked choice voting. Mayor Troxell thanked the speakers and stated that, while transparency is important, he believes the complaint-based system has worked and he would be concerned about implementing changes that would dissuade candidates from participating. Councilmember Pignataro asked if it would be appropriate for the Committee to make a decision on LLCs as all three of their names appear on the list of candidates with LLC donations. Chief Deputy City Clerk Knoll noted the Committee would be making a recommendation to Council with Council being the body that would ultimately make any changes to the Election Code. Councilmember Pignataro asked about the scheduling of the Committee meetings. City Clerk Coldiron replied the meetings have been set for every other month for the rest of the year; however, that can be adjusted as necessary. 4. APPROVAL OF AUGUST 2, 2018 COMMITTEE MEETING MINUTES Mayor Troxell made a motion, seconded by Councilmember Summers, to adopt the August 2, 2018 Committee meeting minutes. The motion was adopted by unanimous consent. 5. DISCUSSION ITEMS a. Review of the scope of the Election Code Committee and past accomplishments Assistant City Attorney Ryan Malarkey discussed the history of the Election Code Committee and various Election Code changes made by Council, after recommendation by the Committee. Councilmember Pignataro asked how far prior to an election any Election Code changes need to be put into place. Chief Deputy City Clerk Knoll replied they would ideally be in place by September. Mayor Troxell requested feedback on changes that were made prior to the April 2019 election. Chief Deputy City Clerk Knoll replied the additional required campaign finance reports placed a stress on the workload, as did the large number of candidates. She also noted there were additional ballot processing requirements that needed to be implemented, including signature verification and a new tabulation system. City Clerk Coldiron commented on the relationship with the County which provides County workers in the City Clerk's Office to help with registrations and other issues. The County is also considering letting the City use its ballot box. Chief Deputy City Clerk Knoll stated the marketing campaign appeared to have been successful in getting people to check registrations early which decreased the walk-in traffic. She discussed the changes made relating to UOCAVA voters and to extending the time for signature discrepancies to be cured. Mayor Troxell commended the election and its transparency given the number of new processes. He stated he would be slow to act in making additional changes citing the importance of predictability and stability. Councilmember Summers stated he could find some interesting results that would come from ranked voting at a local level. Councilmember Pignataro asked if there are clear guidelines about impartiality for election workers. Chief Deputy City Clerk Knoll replied that had not typically been an issue; however, a complaint was received from a candidate related to contact from Ms. Deschenes which is why she was not selected for election employment. She stated staff has determined a more complex application and vetting process will occur in the future. City Clerk Coldiron stated staff will work with Human Resources and the City Attorney's Office to formalize the election worker hiring process. City of Fort Collins Page 3 b. Overview of April 2019 election Chief Deputy City Clerk Knoll discussed turnout numbers, noting the number of registered voters is constantly changing. Receiving 32,000 ballots for a local election is a good turnout. She reviewed the election worker roles, overseas voter numbers, signature discrepancy corrections, new processes and equipment, campaign law changes, and election cost. Councilmember Pignataro asked if it is a requirement that ballots first go to Denver for processing through the mail. Chief Deputy City Clerk Knoll replied in the affirmative but noted there is an agreement in place with the Fort Collins post offices to hold any ballots they get on Election Day. c. Background on recent changes to Election Code City Clerk Coldiron reviewed changes made to the Election Code prior to the April election. She also reviewed the complaints received during the election, stating two, relating to “paid for by” requirements on flyers, yard signs, campaign websites and a Facebook page, have been forwarded for additional investigation. Councilmember Pignataro asked why other complaints related to a Facebook pages have been dismissed while one remains. Assistant City Attorney Malarkey replied he could not make detailed comments as the investigation is ongoing. Chief Deputy City Clerk Knoll noted Fort Collins, as a home-rule city, does not follow the majority of state laws regarding campaign finance. Mayor Troxell opposed the severity of the penalty associated with “paid for by” violations and suggested the Committee consider alternatives. Councilmember Pignataro agreed and suggested the inclusion of additional language in candidate guidelines. d. Review of proposed amendments to District-Precinct Map and possible recommendation to be included in September 17 Council Agenda Item Chief Deputy City Clerk Knoll presented a draft agenda item for the September 17 Council meeting related to precinct changes made by the County. She noted the changes do not affect Council districts. Mayor Troxell made a motion, seconded by Councilmember Summers, to recommend adoption of the amendment to the City precinct map based on the County's precinct changes. The motion was adopted unanimously. e. Redistricting study overview City Clerk Coldiron stated this communitywide redistricting effort was approved as part of the last budget cycle and noted the last redistricting was done in 2016. She stated redistricting must occur when there is a 10% or greater population variation between the most populous district and the least populous district, which in this case are Districts 1 and 4. City Clerk Coldiron stated the redistricting study will result in an analysis of the current population-based methodology and ideas for others, evaluation of a possible district configuration, a robust public engagement effort, and multiple redistricting options. She noted the hired consultant will aid in the entire process and be present to answer questions. Staff would like to draft a request for proposal for the Committee to consider at its next meeting and begin work in February with Council consideration in November or December of next year. Councilmember Pignataro asked how a consultant will be chosen. City Clerk Coldiron replied a staff committee will be formed to review the requests for proposal submissions and the Committee will be kept informed along the way. Councilmember Summers suggested a November review by Council in order to provide additional time for potential candidates who may run in the April election. City Clerk Coldiron noted the new district boundaries will not go into effect until 2023 as census data will not be reported until 2021. City of Fort Collins Page 4 6. FUTURE TOPICS What topics does the committee wish to explore as part of its work plan? Councilmember Pignataro asked if Committee members could send suggestions to staff for compilation prior to the next meeting. 7. OTHER BUSINESS None. 8. ADJOURNMENT The meeting adjourned by unanimous consent at 5:00 PM. City of Fort Collins Page 1 November 15, 2019 ELECTION CODE COMMITTEE MEETING 3:45 PM COUNCILMEMBERS PRESENT: Troxell, Pignataro, Summers STAFF PRESENT: Carrie Daggett, Ryan Malarkey, Delynn Coldiron, Rita Knoll, Sara Gonzales CITIZENS PRESENT: Marge Norskog, Robbie Moreland, Kathleen Schmidt, Kevin Jones 1. CALL MEETING TO ORDER Mayor Troxell called the meeting to order. 2. CITIZEN COMMENT Marge Norskog stated this committee provides a great deal of experience to determine how best to provide oversight for elections going forward. She discussed a new Colorado law: the Campaign Finance Enforcement Code. She stated the Secretary of State is actively creating a campaign enforcement group within its office and encouraged the City to examine a similar process. 3. APPROVAL OF SEPTEMBER 6, 2019 COMMITTEE MEETING MINUTES Councilmember Summers made a motion, seconded by Mayor Troxell, to adopt the September 6, 2019 Committee meeting minutes. The motion was adopted by unanimous consent. 4. DISCUSSION ITEMS a. “Fishbowl” donations - Require greater detailed reporting or not allow this type of campaign contribution? Chair Pignataro stated these types of donations added up to over $500 in the last election. City Attorney Daggett noted it is challenging to have anonymous donations where you have individual contribution limits; therefore, it may be necessary to have some type of tracking for these donations. Councilmember Summers stated people try to find ways around the rules and money is pushed out of the control of the candidate when more rules are in place. Campaigns should track individual donations regardless of the amount so it can be reported when the threshold is met. Candidates want to know who is contributing to their campaigns and suggested not allowing “fishbowl” donations may be the appropriate solution. Mayor Troxell stated this type of donation does not seem to function with the maximum donation amounts. Chair Pignataro asked about the language around anonymous donations. Chief Deputy City Clerk Knoll stated any donation under $20 is non-itemized and not reported. A solution would be to not allow non- itemized contributions. Mayor Troxell supported that solution and asked what constitutes a Charter change with regards to elections. City Attorney Daggett replied there is a Charter provision that prohibits employee contributions to Council candidate campaigns and prohibits contributions from organizations contracting with the City. She also stated ranked voting would also be a Charter amendment and the remainder of the items on this agenda would be Code changes. City Attorney Daggett noted there has been some discussion about the Charter provision related to not being able to hold office if convicted of a Code violation during an election. She noted Code changes would likely be able to address the concerns about the Charter provision and she reviewed items that could be viewed as criminal versus civil infractions in the election-related Code language. Chair Pignataro stated eliminating anonymous donations would solve the “fishbowl” contribution issue. November 15, 2019 City of Fort Collins Page 2 b. Review of the complaint and enforcement procedures and penalties for election code violations. Chair Pignataro stated the review of the complaint and enforcement procedures and penalties for election code violations would be a much longer effort. Councilmember Summers stated the significant changes that were made after the 2017 election that applied to the 2019 election should be reviewed. He opposed the “paid for by” requirement for yard signs and stated some of the changes may have been overcorrections. Most of the 2019 election complaints were frivolous, bogus, and inconsequential. Chair Pignataro stated the “paid for by” requirement began because of mailers that were funded by outside money. She agreed with Councilmember Summers that some of the changes may be overreaching. Councilmember Summers opposed the requirement for two signatures on joint checking account checks. He stated several of the City's requirements do not even apply at the state level. He expressed concern that taking the control of the campaign out of the candidates' hands diverts it to outside groups. Mayor Troxell supported adopting a minimalist, candidate-focused, transparent process. He supported doing away with anonymous donations. Councilmember Summers stated there should be a right to cure things that are deficient in election reporting, such as missing addresses. Knoll replied the Clerk's Office does not review reports at that level of detail; however, if it is brought to the attention of the Clerk, the candidate is told and is able to file an amended report. Chair Pignataro asked if the priority of this item is changed by Council as a whole bringing it up under Other Business. Knoll replied Council will consider a draft ordinance and recommendation from this committee. Councilmember Summers stated anything short of misappropriation of funds should not be viewed as a criminal activity. City Attorney Daggett suggested staff return with options and recommendations. c. Ranked Choice Voting-pros and cons for our community. Chair Pignataro noted ranked voting could not be in place by the next election; therefore, while it is still important to discuss, it is not necessarily a priority at this time. She stated ranked voting could even the playing field a bit. Councilmember Summers discussed his experience with ranked voting and stated he essentially supports the “one vote, one person” philosophy. He noted there could be a large confusion factor for voters and stated ranked voting may not add a great deal of value to city elections. Mayor Troxell stated there is no existing problem that would be fixed by ranked voting. He noted some areas that have implemented ranked voting have now done away with it. d. Restrictions on employees and contractors from participating in City elections. City Attorney Daggett stated staff will likely want to provide more detail on this topic as the discussion progresses. She stated the employee issue is separate from the contractor issue and stated staff is recommending Council consider asking voters to remove the restrictions on contracting organizations in light of Citizens United as there is some question as to whether the prohibition is consistent with how the law has developed. She noted that would be a Charter provision change and stated the committee may need an executive session to fully discuss legal ramifications. City Attorney Daggett noted the employee contribution prohibition only applies to candidate elections, but employees can participate in issue elections on a personal level. November 15, 2019 City of Fort Collins Page 3 Chair Pignataro noted the City is one of the largest employers in Fort Collins and stated not allowing employees to participate is difficult for candidates. City Attorney Daggett noted City Manager Atteberry may want to be involved in this discussion related to concerns about relationships employees may have developed with candidates to whom they have contributed. e. Campaign naming and carry-over for returning candidates. Chair Pignataro noted this item relates to using a different campaign name for each election. She expressed concern that this could be wasteful in terms of campaign materials. Councilmember Summers stated campaigns are active until they are closed at the state level. Chair Pignataro asked what issues are being faced by the City Clerk's Office that would drive the need for different campaign names. Deputy City Clerk Gonzales replied donations are tied to committee names and it is difficult to determine which campaign is associated with which donations if the campaign name remains the same. She noted funds can be carried over from one committee to the other; however, the itemized items do not carry over. Councilmember Summers suggested utilizing dates to differentiate campaigns. Mayor Troxell noted issue committees and candidate committees may need to be treated differently. Gonzales replied issue committees are required to terminate and candidate committees must be reopened for each election, though they can remain open with an annual reporting requirement. f. Possible alignment with state law regarding LLC election contributions. Councilmember Summers stated the state law requires a report, which is only held by the candidate, outlining contributions made by an individual and their LLC. City Attorney Daggett stated it could become cumbersome to attempt to attribute a donation equally among all members of an LLC. Chair Pignataro stated City elections have a low per person donation limit for a reason and allowing LLC contributions seems to go against that. Councilmember Summers stated higher contribution limits may be needed in order to avoid LLC contributions. Chair Pignataro stated she would like to have staff prepare information related to pros and cons of the state regulations. 5. Continuation of Election Code Committee City Attorney Daggett stated this item has come about as there may be enough interest on the part of the entire Council on some items that a work session may be a better way to proceed with a discussion. City Clerk Coldiron stated there was also some thought that the amount of changes already made may need to be digested and assessed prior to making more changes. Members discussed items that they would like to consider in January. 6. OTHER BUSINESS Chair Pignataro encouraged the Clerk's Office to make scanned reports searchable PDFs. November 15, 2019 City of Fort Collins Page 4 7. ADJOURNMENT The meeting adjourned by unanimous consent at 5:14 PM. City of Fort Collins Page 1 January 10, 2020 ELECTION CODE COMMITTEE MEETING 3:31 PM COUNCILMEMBERS PRESENT: Troxell, Pignataro, Summers STAFF PRESENT: Carrie Daggett, Ryan Malarkey, Delynn Coldiron, Rita Knoll, Sara Gonzales CITIZENS PRESENT: Robbie Moreland, Jody Deschenes, Anne Thompson, Sam Houghteling, Eric Sutherland 1. CITIZEN COMMENT Robbie Moreland stated Secretary of State regulations state that campaign contributions made as a member of an LLC counts toward contribution limits for that individual; however, City law allows an individual to make contributions under their own name as well as through their LLCs. She opposed the City provisions, as LLCs are not individuals and do not receive a ballot to vote. She requested the City develop a way to align contributions limits for LLCs with the state requirements. She expressed support for ranked choice voting, is interested in the continued discussion on non-itemized contributions under $20, and requested the Committee recommend doing away with anonymous donations altogether. Jody Deschenes expressed support for the City adopting Colorado's rules regarding campaign contributions from individuals and LLCs. She also supported independent redistricting and requested an update on the timeline for hiring an independent redistricting consultant following the 2020 census. She supported eliminating anonymous or non-itemized contributions under $20 and supported ranked choice voting. Chair Pignataro noted she had previously requested staff prepare pro and con information regarding possible alignment with state LLC contribution provisions and requested an update. Gonzales replied that topic will be discussed at the February meeting. Mayor Troxell requested information regarding the LLC provisions related to a home rule municipality. City Attorney Daggett replied the City has its own set of campaign finance rules and would need to adopt something different to match the state provisions. Councilmember Summers stated it is important not to pick and choose what the City models locally after the state guidelines. He asked if the intent is to make it more difficult to run for City Council than for the State House or State Senate. Chair Pignataro replied she would like to look at pros and cons of changing the regulations. Councilmember Summers stated he would like to look at the state model for donations from couples. He noted the Fort Collins model is more restrictive than state law for couples to donate to a candidate. Mayor Troxell discussed the importance of identifying goals to be achieved prior to making changes. Chair Pignataro noted ranked choice voting would require Council to vote to place the item on a ballot as it is a Charter change. Knoll noted the only option to have that in place for the next City election would be to place it on the November 2020 ballot. Councilmember Summers stated it would be helpful to have an analysis of how many elections had more than 2 candidates when looking at ranked voting. Knoll replied she would provide a spreadsheet of the number of candidates in each race for each election and data on whether the winning candidate acquired more than 50% of the vote. Mayor Troxell discussed the recent ethics complaint regarding Mayor Pro Tem Stephens and his participation in the Hughes Stadium site rezoning and stated it is false to claim issue committee donations are related to individual campaigns as was suggested as part of that complaint. City of Fort Collins Page 2 2. APPROVAL OF NOVEMBER 15, 2019 COMMITTEE MEETING MINUTES Mayor Troxell made a motion, seconded by Councilmember Summers, to adopt the November 15, 2019 Committee meeting minutes. The motion was adopted by unanimous consent. 3. DISCUSSION ITEMS a. Review past Election Code changes, grouped by themes - Discussion of which areas the Committee would like to see amended Councilmember Summers stated the definition of a Candidate Committee was changed to specify the common purpose is to receive contributions or make expenditures rather than and make expenditures and asked why that change was made. City Attorney Daggett replied that change was made realizing candidate committees would not technically meet the definition of a candidate committee until it started spending money. Councilmember Summers suggested some context may be missing related to the candidate committee language. Knoll replied both contributions and expenditures were required to meet the definition of a candidate committee when the language was first written; however, there could be a situation in which the candidate funds the committee totally by loaning the campaign money, which is not technically a contribution, but is a loan. This would mean expenditures could be made, but contributions were not received, and the proposed language would allow a candidate committee to either receive contributions or make expenditures, or both. City Attorney Daggett stated the language could be revisited as necessary. Councilmember Summers asked if an individual could run for Council and not have a candidate committee. City Attorney Daggett replied candidate committees are defined as “a person, including the candidate, or persons with a common purpose, of receiving contributions, making expenditures, under the authority of the candidate”; therefore, the definition is written to include the candidate as a person. She stated it is a requirement of the candidate to have a committee unless there is no money being contributed. Councilmember Summers asked if there is a time limit for which candidates are required to retain copies of public communication, invoices, receipts, and other instruments of payment. Gonzales replied it is for a year unless a complaint has been filed, then items must be kept until after its resolution. Councilmember Summers asked if it must be counted as a contribution if someone from an individual's campaign committee voluntarily sets up the candidate’s webpage. City Attorney Daggett replied certain items online are free, and other things are not; therefore, it would depend on whether the page was placed on a hosted site or one that could be freely used. She stated this section prohibits different rates being given to certain candidates over others. Councilmember Summers stated there may have been some confusion prior to the requirement that independent expenditures must have a “paid for by” declaration. City Attorney Daggett replied most of the confusion was on the part of complaining parties, and it was made clear that new regulations such as this do require a fair amount of education. She stated there is opportunity to continue improving the education around the requirements. Chair Pignataro asked if the Code language indicates “paid for by” statements are required when money or in-kind donations are exchanged. Assistant City Attorney Malarky noted a trigger for the use of “paid for by” is when a candidate or committee makes an expenditure. City Attorney Daggett stated the Code language includes examples of items that are understood to be impractical for a notice requirement. Mayor Troxell asked if this section could include something about social media. City Attorney Daggett replied the language does say communication shall include, but is not limited to, websites or social media of a candidate committee, issue committee, or small-scale committee, if and to the extent they are financed by independent expenditures. Chair Pignataro clarified the requirement would apply to ads purchased on Facebook, for example, but not to posts on personal pages. City of Fort Collins Page 3 City Clerk Coldiron noted there may be some confusion and question as to what is impractical for the “paid for by” requirement. City Attorney Daggett mentioned the question as to whether materials from previous elections, such as yard signs, should be required to have the “paid for by” notation. Councilmember Summers questioned why “paid for” declarations are required. Knoll replied this came from a request from citizens because there were very negative ballot materials against another candidate sent out in the April 2017 election that appeared to be from the candidate's campaign, and it was difficult to identify who had sent it. Councilmember Summers stated that kind of issue should be the focus of what needs to be solved with a “paid for by” requirement. Chair Pignataro stated she would like to see this requirement used through one more election cycle before making any amendments. Mayor Troxell agreed. b. Possible Election Code Changes-Review of draft Code Amendments 1. Elimination of anonymous donations Malarky stated the direction staff received from the Committee was to eliminate all anonymous donations; therefore, the $20 threshold has been eliminated in the draft language so any donation amount would need to be tracked and recorded. Mayor Troxell stated this requirement may make things simpler. City Attorney Daggett noted this requirement would eliminate the possibility that someone could make multiple small donations that would not be tracked under the previous regulations. Chair Pignataro noted she would want to know who is supporting her as a candidate. The Committee supported the proposed language on this issue. 2. Use of unexpected City election candidate contributions in a non-City election Chair Pignataro stated she does not want this to appear as if it is being done for a specific candidate and asked if a similar provision exists at the state level. Councilmember Summers replied funds can be rolled over among state campaigns. He noted new committees must be formed if the campaigns are for different offices on different levels. Mayor Troxell noted unexpended campaign funds can now go to non-profits and other entities and suggested a campaign for another position should also qualify under that category. Councilmember Summers asked if leftover campaign funds are considered the candidate's funds when being transferred from one year's campaign to another. City Attorney Daggett replied there would not be a limit on the transferred amount. 3. Carry-over of unexpended candidate contributions to the next election cycle and the ability of the committee to keep its same name Malarky stated this item was intended to address a concern that was raised about having to develop a new committee name. The Election Code Committee provided direction that candidates be able to retain the same committee names. Knoll suggested committee names could be amended with the knowledge and documentation that the committee is the same. City of Fort Collins Page 4 4. Addition of a cure period for respondents in the campaign violation process Malarky outlined the language for this proposed change. Mayor Troxell asked about the repercussions for campaign violations that are not corrected. Malarky replied there would then be a determination made either by the City Attorney's Office or outside counsel regarding whether further investigation or prosecution is warranted. 5. Removal of the citizen enforcement mechanism in District Court City Attorney Daggett stated the current Code allows the complaining party to file a case in District Court should the City's prosecutor chose not to pursue prosecution of a violation. Staff recommends removing this ability from the Code based on questions of constitutionality in recent court cases. She outlined a complaint received regarding an election which was ultimately reviewed and determined to not merit further investigation. She stated the citizen was frustrated with the time it took to investigate the complaint. Chair Pignataro asked what options would be available for a citizen. City Attorney Daggett replied the initial logic of the campaign finance disclosure requirements was that the political process is political and whatever information people have about what may have happened would feed into the political process and be usable for people who wanted to advocate for or against individual candidates, or seek recall of individual candidates. 4. OTHER BUSINESS Chair Pignataro asked when the civil versus criminal penalty option will come before the Committee. City Attorney Daggett stated any violation is currently a criminal misdemeanor and there are some types of violations that staff would recommend continue to be so. She stated it is clear there is interest in backing off consequences and intensity of enforcement for items like filing violations. She stated those issues would shift from a criminal violation to a civil infraction or other administrative violation. City Attorney Daggett stated staff will need to work on developing a recommendation for what the process may look like. She noted civil infractions are punishable by fines and stated a fine schedule could be outlined. Councilmember Summers stated it is important to delineate between oversights and mistakes versus true law violations such as fraud, which is already illegal. He stated creating disproportionate penalties will discourage people from serving in public office. City Clerk Coldiron and City Attorney Daggett outlined the process by which complaints are addressed through the two offices. Chair Pignataro asked if the City is planning to place any items on the November 2020 ballot. City Clerk Coldiron replied in the negative. Mayor Troxell discussed how items may emerge to be placed on the ballot. Chair Pignataro asked about cost of adding an item to a presidential election ballot. City Clerk Coldiron replied it would be quite expensive and noted all local items are placed near the end of the ballot. 5. ADJOURNMENT The meeting adjourned by unanimous consent at 5:22 PM. City of Fort Collins Page 1 February 21, 2020 ELECTION CODE COMMITTEE MEETING 3:32 PM COUNCILMEMBERS PRESENT: Troxell, Pignataro, Summers STAFF PRESENT: Carrie Daggett, Ryan Malarky, Delynn Coldiron, Rita Knoll, Sara Gonzales CITIZENS PRESENT: Robbie Moreland, Michael Pruznick, Michelle Haefele, Jody Deschenes, Psyche Spangler, Roxanne Griffin, Lori Brunswig, Kathleen Schmidt, Dick Thomas, Adolfine Thomas, Anne Thompson, Karen Wagner 1. CALL MEETING TO ORDER Chair Pignataro called the meeting to order. 2. CITIZEN COMMENT Robbie Moreland suggested new election laws should strive to meet the intent of the legislative declaration in Chapter 7 of the Municipal Code. LLC contributions should be limited, and City law should match state law to avoid the appearance of corruption. She also supported matching state law relative to the formation of independent expenditure committees and stated the formation of an independent expenditure committee should be required when donations in excess of $250 have been received, or an expenditure in excess of $250 has occurred, and donor disclosures should be required for donations of $100 or more. Jody Deschenes stated the City's high standards should include the highest level of transparency for voters. She requested that contributions from individual voters be limited to $75 or $100 in total, regardless of how many LLCs are owned by that individual. She also requested candidate committees be terminated in full at the end of each election, including liquidating all unused campaign funds, and requested that all committee and independent expenditure reporting forms be updated to digital versus PDFs to make filing, storage, and review easier. Ms. Deschenes also requested an update regarding the vetting and hiring of an independent redistricting consultant and supported the use of ranked choice voting. Additionally, she requested an update on guidelines for employment as an election judge. Kathleen Schmidt, League of Women Voters of Larimer County, requested the City change its law to match the state law relative to campaign contribution limits from LLCs. Michael Pruznick discussed his energy-neutral home and stated there is a large loophole in the LLC issue. He discussed the “paid for by” requirement and penalties for campaign violations. He mentioned legalizing vote buying. Anne Thompson, League of Women Voters of Larimer County, stated the League was recently approached by members of Represent Fort Collins regarding changes that should be made regarding contribution limits from LLCs. Fort Collins should change its laws to match those of the state. Michelle Haefele supported aligning Fort Collins regulations with those of the state regarding LLC contributions, and supported ranked choice voting. Roxanne Griffin supported aligning Fort Collins regulations with those of the state regarding LLC contributions. Karen Wagner opposed the outside influence of money on politics and supported aligning Fort Collins regulations with those of the state regarding LLC contributions. Richard Thomas supported aligning Fort Collins regulations with those of the state regarding LLC contributions and stated any Councilmembers who have accepted a contribution from an LLC should recuse themselves from votes related to developments. Councilmember Summers noted not all LLCs are related to developers and that Fort Collins has the lowest contribution limits of any municipality in the state. Election codes should provide the candidate the greatest City of Fort Collins Page 2 control over his or her election if there is a concern about who is influencing elections. He also noted state guidelines allow $400 contributions per individual and stated local City Councilmembers are not professional politicians. He spoke in favor of keeping money directed to candidates for their use. Chair Pignataro asked about changing the campaign finance report forms from PDFs. Knoll replied they are fillable PDFs but they are scanned and posted online so as to ensure the Clerk's Office date stamp is reflected. She suggested there could be another way to address that in the future. Regarding ranked choice voting, Councilmember Summers commented on the low number of races over the last several elections that had candidates receiving less than 50% of the vote. Mayor Troxell commented on ranked voting not appearing to be necessary based on prior elections. Councilmember Summers stated he would like to get some information from other Colorado municipalities who use ranked choice voting. Councilmember Pignataro asked about redistricting. City Clerk Coldiron stated census data will not be available until the first quarter of 2021 and redistricting would be based on that. 3. APPROVAL OF JANUARY 10, 2020 COMMITTEE MEETING MINUTES Mayor Troxell made a motion, seconded by Councilmember Summers, to adopt the January 10, 2020 Committee meeting minutes. The motion was adopted by unanimous consent. 4. DISCUSSION ITEMS a. Civil versus criminal penalty options for election code violations City Attorney Daggett stated the City has a history of limited enforcement action around campaign finance issues and the Committee has discussed evaluating potentially changing violations from all violations being a criminal misdemeanor to making some less egregious complaints civil infractions or administrative violations. Councilmember Pignataro mentioned the Committee decided at its previous meeting to leave the existing “paid for by” requirements in place as they were just implemented in the previous code change cycle. City Attorney Daggett stated the next meeting agenda is planned to include possible Charter amendments related to elections. Malarky presented information related to a possible new enforcement system. He noted the existing process is complaint-based and complaints go through a review process by the City Attorney for probable cause, and if probably cause is found, there would be further investigation and prosecution if deemed appropriate. All violations of campaign finance requirements are currently criminal misdemeanors. This proposed system makes most violations of the campaign finance requirements subject to civil penalties. Malarky outlined the items that would remain criminal offenses under this system. The current proposal would disallow campaign contributions from being used to pay administrative penalties. Councilmember Summers disagreed with that recommendation. Knoll discussed the reasoning for the draft language, stating donors provide contributions to aid in getting an individual elected. Councilmember Pignataro stated she could see both sides of the issue relating to whether or not campaign contributions should be able to be used for fines. Committee members and staff discussed the number of violations that would need to occur prior to a violation becoming criminal. City of Fort Collins Page 3 Councilmember Summers suggested the process related to joint account contributions would benefit from being aligned with the state regulations. Mayor Troxell commended the overall work of the City Attorney's Office stating the changes align with the Committee discussions. b. City regulation of LLC campaign contributions Malarky stated this proposed language amends the campaign contributions and expenditures Code section related to contribution limits. The change mirrors state law and would require an LLC to submit a written statement to the candidate or candidate committee when it makes a contribution, providing the name and address of all the members of the LLC, information on how the contribution will be attributed to those individual members, and the contributions made by the LLC as they are attributed to the members. The contributions would then count toward the individual contribution limits of the members. Mayor Troxell asked about the situation in relation to a C-corporation. Malarky replied this is strictly related to LLCs. Mayor Troxell questioned the legal structure of an LLC and how it is considered beyond being a legal entity. City Attorney Daggett stated she has not examined the rationale for looking at LLCs only as opposed to other types of business entities, though it is likely because an LLC is easier to form and there are fewer related consequences to forming an LLC than other types of business entities. Councilmember Summers stated the rules as they are now are not discriminatory in terms of one candidate over another and suggested changing the regulations will allow LLCs to make the same contributions to an independent expenditure committee rather than to an individual candidate which takes control away from the candidate. Knoll commented on nested LLCs which may need to be addressed in these provisions. City Attorney Daggett stated that could be addressed by requiring information if a member is not a natural person. Mayor Troxell supported increasing the maximum donation amount for each individual if the LLC regulations are changed. Councilmember Pignataro stated she would not support that. Councilmember Summers stated it would be interesting to have data related to LLC contributions from the last election to ensure recommended changes are not reactionary. Mayor Troxell stated he does not believe there is corruption involved in LLC contributions and questioned whether changes would improve the system. He questioned what problem is being solved. Councilmember Pignataro stated the problem as she sees it is that LLC contributions take the power away from individual voters and place it with entities that have more money. Mayor Troxell disagreed. Councilmember Summers noted individuals still cast ballots. 5. OTHER BUSINESS Chair Pignataro suggested that joint account contributions be addressed at a later meeting. 6. ADJOURNMENT The meeting adjourned by unanimous consent at 5:25 PM. City of Fort Collins Page 1 May 1, 2020 ELECTION CODE COMMITTEE MEETING 3:30 PM COUNCILMEMBERS PRESENT: Troxell, Pignataro, Summers, Stephens (alternate) STAFF PRESENT: Carrie Daggett, Ryan Malarkey, Delynn Coldiron, Rita Knoll, Sara Gonzales CITIZENS PRESENT: Michelle Haefele, Jody Deschenes, Kathleen Schmidt, Robbie Moreland, Jan Rossi (Secretary's Note: Due to the COVID-19 crisis and state and local orders to remain safer at home and not gather, all Councilmembers, staff, and public attended the meeting remotely, via teleconference.) 1. CALL MEETING TO ORDER Chair Pignataro called the meeting to order and discussed the Zoom remote participation. 2. CITIZEN COMMENT Kathleen Schmidt, Election Reform Team Chair for the League of Women Voters of Larimer County, supported the City matching the state law regarding campaign contributions from LLCs. Robbie Moreland thanked Council for its work during this time and supported a requirement to wear face masks in public buildings. She expressed support for matching the state law regarding campaign contributions from LLCs. Jan Rossi opposed the current LLC contribution regulations in Fort C ollins. stating money buys influence. She supported aligning the City's regulations with the state law. Michelle Haefele reiterated the City's legislative declaration for campaigns. Large campaign contributions create the potential for corruption and the appearance of corruption and the public interest is best served by limiting campaign contributions. She supported changing the City's election rules to align with those of the state to limit the total contribution of any individual. Jody Deschenes commended staff and Council for carrying on with responsibilities under unique and challenging circumstances. She supported keeping campaign contribution limits as is , stating most grass roots candidates would not receive a benefit from increased limits. 3. CONSIDERATION AND APPROVAL OF FEBRUARY 21, 2020 COMMITTEE MEETING MINUTES Mayor Troxell made a motion, seconded by Councilmember Summers, to adopt the February 21, 2020 Committee meeting minutes. The motion was adopted by unanimous consent. 4. DISCUSSION ITEMS a. City Regulation of LLC Campaign Contributions Chair Pignataro stated her impression is that this Committee will not likely come to a strict agreement regarding this item; therefore, she suggested no LLC changes be included in the package of changes sent to Council and, if desired, the entire Council could take up the issue. Councilmember Summers agreed noting the current LLC regulations have been in place for decades. He took exception to statements of corruption without any type of proof. Mayor Troxell agreed and stated the Committee should move on. Chair Pignataro stated Mayor Troxell and Councilmember Summers are in favor of leaving the LLC regulations unchanged; however, she is a proponent of changing them. The Committee will send its package of changes forward to Council without changes in the LLC language at this time and the entire Council could take up the issue at that time. May 1, 2020 City of Fort Collins Page 2 b. Possible Charter Amendments Relating to Elections i. Amend Article VIII, Section 9 Corrupt Practices Assistant City Attorney Ryan Malarky stated this item concerns a section of the Charter that came to the attention of Council and the Committee after the last election cycle. Several citizen complaints were filed concerning alleged Election Code violations. Questions were raised as to the consequences or penalties if an allegation is sustained and someone is ultimately convicted of an Election Code violation. Malarky outlined the existing penalties, including a ban on holding City office or employment for a certain number of years, which seem to be fairly significant and s tated staff wanted to give the Committee an opportunity to discuss this section to see if there is any interest in making changes. Clarifying the portion that addresses “at a city election” could be considered. Malarky questioned if this provision is intended to apply to election-related offenses that would have an impact on the outcome of an election or call into question the propriety of City elections. He also noted there is a difference between civil violations and criminal violations, the latter of which generally have stricter penalties. The Committee could consider this provision being triggered only by a criminal violation as opposed to something that would be strictly civil. Mayor Troxell supported getting more information and involving more discussion, perhaps in the form of a work session. City Attorney Daggett suggested it may be helpful for staff to develop some different versions for consideration at the next meeting. Mayor Troxell and Chair Pignataro agreed with that suggestion. City Attorney Daggett outlined what she has heard in the discussion including recognition that this section needs to be related to what would be considered significant offenses that relate to an election or campaign. (Secretary’s note: Councilmember Summers left the meeting at this point and Mayor Pro Tem Stephens stepped in as Committee alternate) ii. Amend Article VIII, Section 8 regarding participation in elections by political parties, city employees, public service corporations or any other person intending to apply for a franchise or have a contract with the City City Attorney Daggett stated an executive session might be helpful to discuss legal issues. This item is on the agenda as there were some issues that came up during the last election related to some employee organizations and generally related to this section. The key part of the section staff is suggesting the Committee may want to consider is the limitation on contributions or expenditures of any money or valuable things, directly or indirectly, to assist in the election or defeat of a candidate by any of the following: a political party, a City employee, a public service corporation, and any person, firm, or corporation owning, interested in, or intending to apply for, any franchise or contract with the City. Mayor Pro Tem Stephens made a motion, seconded by Mayor Troxell, that the Election Code Committee go into Executive Session for the purpose of meeting with the City's attorneys and City Clerk's Office staff to discuss the following matters as permitted under City Charter Article II, Section 11 -2, City Code Section 2- 31(a)(2), and Colorado Revised Statute Section 24-6-402(4)(b): the manner in which the particular policies, practices, or regulations of the City related to City elections may be affected by existing or proposed provisions of federal, state, or local law. Yeas: Pignataro, Troxell, and Stephens. Nays: none. THE MOTION CARRIED. (Secretary 's Note: The Committee went into Executive Session at this point in t he meeting and returned at 5:15 pm.) May 1, 2020 City of Fort Collins Page 3 Chair Pignataro stated there is value in looking at this section more carefully at next month's meeting. Mayor Troxell and Mayor Pro Tem Stephens concurred. iii. Amend Article II, Section 4 to conform with Article II, Section 1(d) to reflect the selection of Mayor Pro Tem does not occur until recount period has expired City Attorney Daggett stated this issue was created when the Charter was amended in 2017, but a provision was missed that needs to be modified, given the recount procedure and time needed to finalize the certification of the election. This would be a corrective edit to the Charter that would ensure the newly elected Council is selecting the Mayor Pro Tem. Staff has discussed an idea that sets a specific date for swearing in of the new Council and subsequent actions, such as selecting a Mayor Pro Tem, would tie into that date. City Clerk Coldiron stated a having a date certain for swearing in of new Councilmembers seems to make sense as the Clerk's Office received many questions after the last election and there was disagreement as to when to move forward with certain actions. This would build certainty into the process. City Attorney Daggett noted the Charter states a Councilmember's term continues until a successor is sworn in and having a date certain for the swearing in would provide more predictability. Chief Deputy City Clerk Knoll stated a full course of a recount and election certification could be out as far as the second Tuesday in May. She also noted there have been issues wherein some Councilmembers are subject to a recount and others are not. Chair Pignataro asked if the language could be changed to select the Mayor Pro Tem at t he first regular meeting after the new Council is sworn in. City Attorney Daggett replied that could work if it was made clear that would occur after each seat is resolved and after the completion of any recount. Chief Deputy City Clerk Knoll noted if no recount is requested, the opportunity to swear in Councilmembers would be sooner, which is one argument against setting a date certain for swearing in. However, setting a date certain would be more similar to county and state offices. Chair Pignataro stated she would like to receive additional information from staff regarding preferences and ease of understanding for voters as this is a Charter amendment. Chair Pignataro suggested staff return at the next meeting with information as to what would be affected by adding a date certain. Mayor Troxell stated the entire Council should be seated prior to selecting a Mayor Pro Tem. He asked about the timeframe for a requested recount. Deputy City Clerk Gonzales replied a recount must be requested within five days after certification of the election, which is ten days after the election. City Attorney Daggett suggested there could be two alternative set dates, one in the case of a recount, and one if there is no recount. Chief Deputy City Clerk Knoll recommended that those two options are likely the first meeting in May or the second meeting in May, or potentially a special meeting at the end of April. Chair Pignataro suggested staff return with options at the next meeting. Mayor Troxell suggested the swearing in does not necessarily need to occur on a Tuesday. (Secretary's Note: Mayor Troxell left the meeting at this point.) May 1, 2020 City of Fort Collins Page 4 iv. Amend Article VIII, Section 4(a) to eliminate requirement that the affidavit of circulator co ntain a statement of the number of signers on that section of the petition Chief Deputy City Clerk Knoll stated this provision was eliminated in one portion of the Charter, but staff recently discovered a hold over of similar language in another section. This change will clarify that language. Mayor Pro Tem Stephens stated that language cleanup makes sense. 5. OTHER BUSINESS Mayor Pro Tem Stephens stated there may be some desire from the rest of Council to bring forward the issue related to LLC campaign contributions and suggested staff may want to have language prepared. City Attorney Daggett stated there may be benefit in having a Council work session to discuss some of these issues. Chair Pignataro noted the importance of timing as Charter amendments would need to be on the April ballot. 6. ADJOURNMENT The meeting adjourned by unanimous consent at 5:43 PM. City of Fort Collins Page 1 June 5, 2020 ELECTION CODE COMMITTEE MEETING 3:30 PM COUNCILMEMBERS PRESENT: Troxell, Pignataro, Summers STAFF PRESENT: Carrie Daggett, Ryan Malarky, Delynn Coldiron, Rita Knoll, Kelly DiMartino CITIZENS PRESENT: Jody Deschenes, Robbie Moreland, Kathleen Schmidt, Kevin Jones, Jan Rossi, Michele Haefele (Secretary's Note: Due to the COVID-19 crisis and state and local orders to remain safer at home and not gather, all Councilmembers, staff, and citizens attended the meeting remotely, via teleconference.) 1. CALL MEETING TO ORDER Chair Pignataro called the meeting to order and discussed the Zoom remote participation. 2. CITIZEN COMMENT Robbie Moreland thanked the Committee for sending the recommendation to eliminate anonymous contributions to the entire Council. She stated there is no limit on donations from individuals to political committees in Fort Collins but at the state level, that limit is $625 per two-year election cycle. She requested the Committee address this campaign finance loophole as soon as possible. She requested confirmation on her assertions that the limits do not exist, and that political committees can coordinate with candidates. Jody Deschenes stated there are currently no limits on donations from individuals to political committees and no prohibition of coordination between candidates and political committees. She requested contributions to political committees be limited to $100. She thanked the Committee for recommending to Council that anonymous donations be eliminated. Kathleen Schmidt, League of Women Voters of Larimer County, thanked the Committee for its work. She expressed support for matching the state law regarding campaign contribution limits from LLCs. Chair Pignataro asked if it is true there is no limit on contributions to political committees and that there is no prohibition of political committees coordinating with candidates. City Attorney Daggett replied the definitions of the different types of committees do not necessarily describe contribution limits; however, there is a Code provision that specifically states committees of all types shall not coordinate expenditures with any other such committee in a manner that circumvents any restrictions or limitations on campaign contributions, expenditures, or reporting. She stated there are no limits on expenditures of committees because the campaign finance system in the Code, with the exception of the limitations on contributions to candidates, is aimed at essentially bringing light to expenditures through disclosures. The reason for that is that First Amendment protections exist for political speech. City Attorney Daggett clarified there is a limit on contributions to candidates, but not to political or issue committees. Staff is in the process of writing a memo addressing these topics. Mayor Troxell noted self-funding of campaigns can occur as well and he discussed the importance of candidates wanting to control their own messaging. 3. CONSIDERATION AND APPROVAL OF MAY 1, 2020 COMMITTEE MEETING MINUTES Mayor Troxell made a motion, seconded by Councilmember Summers, to adopt the May 1, 2020 Committee meeting minutes. The motion was adopted by unanimous consent. June 5, 2020 City of Fort Collins Page 2 4. STAFF REPORT: Overview of Code changes previously approved by the Election Code Committee and proposed timeline of changes to City's Election Code. Ryan Malarkey, City Attorney's Office, outlined the previously approved Code changes which include the elimination of anonymous donations, addressing allowing candidates to use unexpended candidate committee contributions for a non-City election or a subsequent City election, and making the majority of campaign finance violations administrative penalties rather than criminal violations, among other items. Chief Deputy City Clerk Knoll stated there is one more ECC meeting scheduled as proposed Charter amendments will need to go before the full Council by July or August to make the November ballot. The timeline for Charter amendments is different as they must be put on the ballot by ordinance, which requires two readings. City Attorney Daggett noted staff has considered having a work session for the entire Council on July 14. Chair Pignataro supported adding these items for discussion. 5. DISCUSSION ITEMS a. Possible Charter Amendments i. Consideration of possible amendment to City Charter Article VIII, Section 4(a) to eliminate the requirement that the affidavit of circulator contain a statement of the number of signers on that section of the petition. (No discussion needed; ECC previously supported bringing this forward to City Council.) ii. Consideration of possible amendment to City Charter Article II, Section 4 to conform with Article II, Section 1(d) to reflect the selection of Mayor Pro Tem does not occur until recount period has expired. Knoll stated the last round of amendments included a change related to when Council takes office, but no amendments were made to when the Mayor Pro Tem is selected, which has resulted in conflicting language. She outlined options for language clarification and provided pros and cons for various options. Mayor Troxell asked how long the outgoing Council would sit. Knoll replied they always remain until the new members are sworn in. Mayor Troxell suggested taking the two options to the work session perhaps with a preferred option from the Commission. Councilmember Summers stated it would be beneficial to get feedback from the full Council on this item. Committee members and staff discussed the timeline issues with both options. Chair Pignataro stated the option that provides more time could allow for onboarding to occur, which would be an advantage. Councilmember Summers discussed the possibility of establishing a date for the oaths of office and selection of the Mayor Pro Tem with the caveat that those dates would change if a recount is requested. Knoll replied that is essentially option one; however, there is no way to predict when the date of swearing in will be until the deadline to request a recount has passed. Mayor Troxell asked what would trigger a mandatory recount. Knoll replied it is a difference of less than one half of one percent; however, anyone can request a recount and fund it themselves. Councilmember Summers stated he would favor option one. Mayor Troxell concurred and stated he would prefer the swearing in to be closer to the election. Councilmember Summers asked if the November coordinated election is occurring only for these issues. City Clerk Coldiron replied these are the only City matters as of right now. June 5, 2020 City of Fort Collins Page 3 Councilmember Summers asked about the cost of a coordinated election. City Clerk Coldiron replied the cost is based on the number of registered voters, as well as the number of other jurisdictions that are participating. The exact cost is difficult to determine, but there will be additional costs because it is a presidential election. If the ballot becomes two pages, there is a significant additional cost. She estimated the cost to be at least $200,000. Councilmember Summers questioned whether that cost would be worth it when the items could be rolled into the regular City election in April. City Attorney Daggett stated a ballot question could be written for the April election that would make the effective date of the changes immediate. Chair Pignataro suggested the Committee continue the discussion at the full Council work session. Chair Pignataro asked if there is a hierarchy to be considered for the coordinated election. Knoll replied there is a hierarchy for how questions are placed on the ballot, with municipalities following state and county items. When the City participated in the 2012 presidential election, the cost to the City was $292,000, which did not include a second page. iii. Consideration of possible amendment to City Charter Article VIII, Section 9 regarding corrupt practices. City Attorney Daggett noted the issue that triggered this possible Charter amendment was the question about campaign finance complaints and the risk that someone who is elected to office would be found to have had a campaign finance violation. She stated the Code provisions reviewed by Malarky and the Commission over the past few meetings address that issue for the most part. There have not been many issues with this Charter provision from a practical standpoint. City Attorney Daggett stated if there was concern about the Charter provision applying to activities in advance of the April election, then a Charter change should perhaps be proposed to voters. Chair Pignataro stated she is leaning toward leaving the provision as is for now. Councilmember Summers supported leaving the provision as is or going with the option of deleting it and having it in the Code as an ordinance. Mayor Troxell agreed. City Attorney Daggett noted there is a challenge when discussing constraining someone from serving in a Council seat if the ordinance is contained in the Code rather than a provision in the Charter. City Attorney Daggett suggested Malarky explain options 2 and 3, as well. Malarkey replied there has been a question as to the definition of “at a City election” and both options 2 and 3 attempt to clarify that. Option 2 contains a specific intent element which would make the provision a little more specific as to the type of conduct it is trying to address. It also contains a timeframe limitation for specific offenses. Option 3 has the same narrowing of timeframe and types of offenses, but without the specific intent element. Malarky acknowledged trying to prove intent can be challenging. Chair Pignataro stated the intent piece introduces more confusion. City Attorney Daggett clarified this item deals with the mechanics of the election rather than campaign activities. Chair Pignataro asked what problem is being solved by this change. City Attorney Daggett replied the current language is vague in the sense that it talks about violating any law at a City election. It may or may not be an urgent problem in the sense that it has not actually been a problem other than during the last few elections when the number of complaints has increased and there has been more risk of someone being convicted of a campaign finance violation as a criminal misdemeanor. With the Code changes recommended by the Committee, that will no longer an issue. June 5, 2020 City of Fort Collins Page 4 Councilmember Summers made some language suggestions. City Attorney Daggett replied staff will return with some options for how this could be approached at the next meeting. iv. Consideration of possible amendment to City Charter Article VII, Section 8 regarding participation in elections by political parties, City employees, public service corporations or any other person intending to apply for a franchise or have a contract with the City. The Committee postponed consideration of this item to the next meeting. 6. OTHER BUSINESS None. 7. ADJOURNMENT The meeting adjourned by unanimous consent at 5:00 PM. City of Fort Collins Page 1 July 1, 2020 ELECTION CODE COMMITTEE MEETING 4:00 PM COUNCILMEMBERS PRESENT: Troxell, Pignataro, Summers STAFF PRESENT: Carrie Daggett, Ryan Malarky, Delynn Coldiron, Rita Knoll, Sara Gonzales CITIZENS PRESENT: Jody Deschenes and Robbie Moreland (Secretary's Note: Due to the COVID-19 crisis and state and local orders to remain safer at home and not gather, all Councilmembers, staff, and citizens attended the meeting remotely, via teleconference.) 1. CALL MEETING TO ORDER Chair Pignataro called the meeting to order and discussed the Zoom remote participation process. 2. CITIZEN COMMENT Robbie Moreland stated she would like the Committee to discuss contribution limits to political committees. Avenues of unlimited spending still exists at both the local and state levels in the form of issue committees and independent expenditures. Jody Deschenes noted the Committee did not agree to support limiting LLC contributions to candidate committees; therefore, she and others reached out for support from the remaining Councilmembers at the last Council meeting and she looks forward to the full Council discussion on implementing the change. Limits should exist on contributions to political committees and she looks forward to a full Council discussion on this as well. Deschenes requested discussions regarding updating campaign finance forms to some sort of accessible online database and allowing electronic signature collection for petitions. 3. CONSIDERATION AND APPROVAL OF JUNE 5, 2020 COMMITTEE MEETING MINUTES Mayor Troxell made a motion, seconded by Councilmember Summers, to adopt the June 5, 2020 Committee meeting minutes. The motion was adopted by unanimous consent. 4. DISCUSSION ITEMS a. Possible Charter Amendments i. Consideration of possible amendments to City Charter Article VIII, Section 8 regarding participation in elections by political parties, City employees, public service corporations or any other person intending to apply for a franchise or have a contract with the City City Attorney Daggett stated this item was placed on the agenda as there had been a great deal of question and discussion during the 2019 election around this Section of the Charter and what the limit on City employee direct or indirect contributions meant. In order for these changes to be in effect for the April 2021 election, Charter amendments would need to be considered on the November ballot. At this point in time, there is no specific plan to move forward with a special election in November and associated costs are expected to be several hundred thousand dollars. It is worth considering whether trying to move this forward now is necessary, though it is still possible should Council desire. Councilmember Summers asked if this provision applies to Councilmembers. City Attorney Daggett replied there is a distinction between the Council as elected officials, or City officers, and other City employees. Mayor Troxell asked if this applies to any other type of election. City Attorney Daggett replied it only applies to City Council candidate elections and does not interfere with employees participating on their own time using their own resources regarding issues in a City election. Mayor Troxell asked how this provision applies to spouses. City Attorney Daggett replied it is limited to actions of the City employee. July 1, 2020 City of Fort Collins Page 2 Mayor Troxell expressed support for increasing clarity, but suggested the Charter language should remain as is. Chair Pignataro agreed with Mayor Troxell and stated ballot wording is critical to lessen confusion. City Attorney Daggett stated the Committee may want to state to the full Council it does not recommend action in terms of putting this item on the November ballot, but may want to ask staff to consider what clarifying language could be put in the Code to interpret the provision. Chair Pignataro and Mayor Troxell agreed with that assessment. ii. Consideration of possible amendments to City Charter Article VIII, Section 9 regarding corrupt practices Ryan Malarky, Assistant City Attorney, stated this item came to Council's attention in the last election cycle when there was an enforcement action that implicated this provision, specifically the portion that would have disqualified a person from holding Council office. In response to some of the concerns raised, staff researched the issue to attempt to bring some clarity to the purpose of the provision and what issues it may be trying to address. Research did not provide any clear answer as to what “at a City election” means; therefore, staff has provided some options to help bring clarity to the meaning of the Charter provision. Malarky stated switching from a criminal process to an administrative penalty process would aid in alleviating concerns raised about this Section. One approach could be to not recommend a change to this Section now and see how the Council decides to approach the administrative penalty process. Another approach could be to send the administrative process to Council while simultaneously moving forward with changes to this language. City Attorney Daggett noted there was discussion at the last Committee meeting about a modification to the Charter that would include a reference to disqualifying events and that could be included in a package of Charter changes when others come forward. Mayor Troxell supported the first option to not act on the Charter language aspect at this time. Chair Pignataro agreed. Councilmember Summers stated it makes sense to have administrative penalties for things that are not corrupt practices. He discussed the importance of contextualizing City policies. City Attorney Daggett stated staff will work to have the Code changes finalized for discussion at the upcoming Council work session and consideration in August. 5. OTHER BUSINESS a. Petitioning Process Update Chair Pignataro noted the Colorado Supreme Court declared today that online petitions are not to be allowed. Malarky stated the Court issued a ruling in a case that specifically challenged the Governor's order allowing online petitioning. The Court ruled online petitioning is unconstitutional as the state constitution requires in- person petitioning. He stated the effect of this on the City will be examined by staff. Mayor Troxell noted there have been active signature solicitors recently. Chair Pignataro asked if the Clerk's Office is still working on making campaign forms searchable. Chief Deputy City Clerk Knoll replied the date stamping issue has been resolved; however, forms are not required to be filled electronically; therefore, some handwritten reports are still received and those would have to be scanned and would not be searchable. She would like to require all parties to use the provided Excel spreadsheet, however, there were issues in the last election where people converted those to other software, and they were not formatted properly when returned. Forms returned in proper Excel format can be converted to a searchable PDF. July 1, 2020 City of Fort Collins Page 3 Chair Pignataro asked how to require candidates to use the provided Excel spreadsheet. Knoll replied staff has yet to discuss whether that can be legislated in the Code. City Attorney Daggett replied that could be examined to be included as part of the August changes. Committee members and staff discussed the reporting requirements. Mayor Troxell commended the City Clerk's Office for being service-oriented, particularly for first-time candidates. Knoll noted the Excel spreadsheet format is helpful to avoid math errors. City Attorney Daggett noted the Code already states that reports are to be submitted on forms provided by the City Clerk. Chair Pignataro commended staff work on the memo regarding political committees. Malarky stated the memo responds to some questions that came up at a recent Council meeting following public comment. The questions include how political action committees are regulated by the City Code, whether there is a limit on the amount of contributions that can be made to a political committee, and whether political committees have the ability to coordinate with other types of committees. Knoll noted the City does not allow political committees to make contributions to candidate committees, though the state law does. City Attorney Daggett noted any time the City is taking action that limits political activity, it creates a need to ensure First Amendment issues are being considered. Chair Pignataro noted political committees, small-scale issue committees, and issue committees do not have contribution limits and asked if all three types of committees have the same types of attributes. City Attorney Daggett replied small-scale issue committees are handling so little money that the requirements to which they are subject has been pared back, pursuant to applicable case law. When one of those committees grows beyond that threshold, it becomes an issue committee. Issue committees focus on ballot questions whereas political committees are focused on candidate races, although they cannot coordinate with, nor make direct contributions to, candidates. Chair Pignataro stated she is not comfortable making a change at this point. City Clerk Coldiron stated there are no additional Committee meetings scheduled and noted the work of the Committee would typically stop at this point until after the next election. Staff will put forth an item calling for a special election in November simply as a placeholder. Chair Pignataro asked if the Committee would need to meet again should Charter amendments be desired to be placed on the April ballot. City Clerk Coldiron replied that could either go before the Committee at another meeting or could go before the full Council. Chair Pignataro suggested not scheduling another meeting at this time but waiting until after the work session to see if it would be needed. Mayor Troxell and Councilmember Summers concurred. 6. ADJOURNMENT The meeting adjourned by unanimous consent at 4:55 PM. -1- ORDINANCE NO. 112, 2020 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING SECTION 7-135 OF THE CODE OF THE CITY OF FORT COLLINS TO MODIFY AND UPDATE REQUIREMENTS AND PROCEDURES FOR CAMPAIGNS IN CITY ELECTIONS WHEREAS, Chapter 7 of the City Code sets out procedures and requirements for redistricting of Council districts, for the conduct of City elections, for disclosure of campaign finance information, and other related matters; and WHEREAS, in 2015 the City Council formed an ad hoc committee to review, discuss and recommend the most beneficial changes to the Code and City Charter regarding elections and other related matters; and WHEREAS, in January 2017, Council made the ad hoc Committee a standing committee of Council for the purpose of identifying and evaluating ideas for improvements to City election laws and practices and anticipating adjustments that may be needed to adapt to a changing legal and technological environment, for Council consideration; and WHEREAS, as a result of the Committee’s work (as both an ad hoc committee and a standing committee), Ordinance No. 021, 2016, Ordinance No. 005, 2017, Ordinance No. 045, 2018, Ordinance No. 077, 2018, and Ordinance No. 113, 2018, were considered and adopted by the Council to update various provisions of Chapter 7; and WHEREAS, the Committee continued to meet in 2018, 2019 and 2020, and has recommended additional clarifications and amendments to Chapter 7; and WHEREAS, the Council discussed several proposed changes to Chapter 7 at its August 25, 2020, work session and expressed general support for the election and campaign finance amendments recommended by the Committee, which are included in Ordinance No. 109, 2020, and under consideration for adoption on this date; and WHEREAS, also prepared based on the Council’s work session discussion, this Ordinance amends the Code to impose certain requirements on limited liability companies concerning contributions, contribution limits, and disclosures, as well as limits on contributions to political committees; and WHEREAS, these amendments generally improve and clarify the City’s campaign finance disclosure; 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 speaker’s interest in freedom of political speech; and WHEREAS, the Council desires to enact the related amendments to Section 7 -135, as set forth below. -2- NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That Section 7-135(a) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 7-135. Campaign contributions/expenditures. (a) Limits. (1) No person may make contributions and/or contributions in kind totaling more than one hundred dollars ($100.) to the candidate committee of any candidate for the office of Mayor. No person may make contributions and/or contributions in kind totaling more than seventy-five dollars ($75.) to the candidate committee of any candidate for the office of Councilmember. 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)a. Contributions or contributions in kind made by a candidate to his or her own candidate committee; (2)b. Independent expenditures; (3)c. 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)d. Contributions made to a candidate committee by another candidate committee established by the same candidate for the office of Mayor or Councilmember. (2) No person may make contributions and/or contributions in kind totaling more than one hundred dollars ($100.) to a political committee. -3- (3) 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. Section 3. That Section 7-135 of the Code of the City of Fort Collins is hereby amended to add a new subsection (b), to read as follows: (b) Limited Liability Company Contributions. A limited liability company (“LLC”) may make contributions or contributions in kind to candidate committees or political committees subject to the following requirements and all other applicable limits of this Section: (1) Any contribution from an LLC shall count against contribution limits for both the LLC itself and the individual members of the LLC as apportioned according. The amount a person contributes as an individual member of the LLC shall count towards the aggregate contribution limit for that person in Subsection (a) herein. (2) The LLC shall provide the candidate committee or political committee with a written statement affirming the permissibility of the contribution on a form provided by the City Clerk. The affirmation shall include: a. The name and address of the LLC and each LLC member; b. Information on how the contribution is attributed among the LLC members, which attribution must reflect the capital each member has invested in the LLC relative to the total amount of capital invested in the company, or the percentage of ownership each member has in the LLC as of the date of the contribution. (3) No candidate committee or political committee shall accept a contribution from an LLC unless the LLC provides the written affirmation in compliance with this Section before the contribution is deposited by the committee. (4) The candidate committee or political committee receiving the contribution shall: a. List both the individual LLC members’ names and the name of the LLC as contributors on disclosure reports; and b. Retain the affirmation statements for one (1) year after the date of the election; provider however, in the event a complaint is filed against the committee, the committee must maintain the affirmations until the final disposition of the complaint. (5) As used in this Subsection (b), “limited liability company” shall have the same meaning as “domestic limited liability company” as defined in Section 7-90- 102(15), C.R.S., or “foreign limited liability company” as defined in Section 7- 90-102(24), C.R.S., as amended. -4- Section 4. That the remaining subsections of Section 7-135 shall be renumbered as necessary in light of the addition of a new subsection 7-135(b). Introduced, considered favorably on first reading, and ordered published this 1st day of September, A.D. 2020, and to be presented for final passage on the 15th day of September, A.D. 2020. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 15th day of September, A.D. 2020. __________________________________ Mayor ATTEST: _______________________________ City Clerk