HomeMy WebLinkAbout079 - 07/05/2022 - AMENDING CHAPTER 7 OF THE CODE OF THE CITY OF FORT COLLINS TO CLARIFY, REVISE AND STRENGTHEN RESTRICORDINANCE NO.079,2022
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 7 OF THE CODE OF THE CITY OF FORT COLLINS
TO CLARIFY,REVISE AND STRENGTHEN
RESTRICTIONS AND REQUIREMENTS
FOR CAMPAIGN FINANCE IN CITY ELECTIONS
WHEREAS,Chapter 7 of the City Code sets out procedures and requirements for
redistricting of Council districts,for the conduct of City elections,for disclosure of campaign
finance information,and other related matters;and
WHEREAS,in 2015 the City Council formed an ad hoc committee to review,discuss and
recommend the most beneficial changes to the Code and City Charter regarding elections and other
related matters;and
W1-IEREAS,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,Ordinance No.109,2020,and
Ordinance No.112,2020,were considered and adopted by the Council to update various
provisions of Chapter 7;and
WI-IEREAS,the Committee has continued to meet and has recommended additional
clarifications and amendments to Chapter 7 requiring that persons making independent
expenditures of $2,500 or more,and persons who take actions in furtherance of an intent to accept
contributions or make expenditures,register as a campaign committee;and
WHEREAS,the Committee has also recommended amendments updating the thresholds
for reporting independent expenditures and for converting a small-scale issues committee to a full
committee registration;and
WHEREAS,the Committee has recommended clarification of how the campaign
restrictions and requirements apply to contributions in kind and has recommended modifications
to the definitions of contribution and contribution in kind;and
WHEREAS,in addition,the Committee has recommended that any person be prohibited
from knowingly receiving a contribution prohibited by the Charter,that any election complaints
filed under these provisions be posted on the City’s website,and that the time for curing a violation
in response to a complaint be increased from seven days to ten days;and
WHEREAS,these amendments generally improve and clarify the City’s campaign finance
disclosure and election requirements and processes;and
WHEREAS,these amendments further the City’s and the public’s interest in shedding light
for the public on the expenditure of money to influence the outcome of City elections,while
respecting the speaker’s interest in freedom of political speech;and
WHEREAS,the Council desires to enact the recommendations of the Committee and staff
to clarif~’and improve the various provisions of Chapter 7,as set forth below.
NOW,THEREFORE,BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1.That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2.That Section 7-132 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec.7-132.Definitions.
The following words,terms and phrases,when used in this Article,shall have the meanings
ascribed to them in this Section:
Contribution shall mean:
(4)With regard to a contribution for which the contributor receives compensation or
consideration of less than equivalent value to such contribution,including,but not limited to,items
of perishable or nonpermanent value,goods,supplies,services or participation in a campaign-
related event,mailing lists and other similar items of value,the amount equal to the value in excess
of the amount of such compensation or consideration as reasonably determined by the candidate
committee,issue committee or political committee based on market prices or other similar
information.
Contribution shall not include:
(1)Services provided without compensation by an individual volunteering their time on behalf
of a candidate,candidate committee,political committee,issue committee or small-scale issue
committee,unless such individual is providing professional services for which a fee would
commonly be paid;
(2)Mailing lists that have never been sold or offered for sale;
(3)Funds collected subsequent to the election to pay the cost of a requested recount pursuant
to 7-46.
Contribution in kind shall not include an endorsement of a candidate or an issue by any person.
Independent expenditure shall mean the payment of money by any person for the purpose of
advocating the election,defeat or recall of a candidate,which expenditure is not controlled by,or
coordinated with,any candidate or any agent of such candidate.Independent expenditure shall
include expenditures for political messages which unambiguously refer to any specific public
office or candidate for such office.Independent expenditure shall also include the payment of
money by any person for supporting or opposing a ballot issue or ballot question that is not
controlled by,or 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.
Issue committee shall mean:
(1)Two (2)or more persons who are elected,appointed or chosen,or have associated
themselves,and that take steps in furtherance of an intent to accept contributions or contributions
in kind,or make expenditures,to support or oppose any ballot issue or ballot question;or
(2)Any person that takes steps in furtherance of an intent to accept contributions or
contributions in kind for the purpose of supporting or opposing any ballot issue or ballot question
or
(3)Any person or associated persons upon making independent expenditures of two thousand
five hundred dollars ($2,500)or more for the purpose of supporting or opposing any ballot issue
or ballot question.
Political committee shall mean:
(1)Two (2)or more persons who are elected,appointed or chosen,or have associated
themselves,and that take steps in furtherance of an intent to accept contributions,or contributions
in kind,or make expenditures to support or oppose one (1)or more candidates;or
(2)Any person that takes steps in furtherance of an intent to accept contributions or
contributions in kind for the purpose of supporting or opposing one (I)or more candidates;or
(3)Any person or associated persons upon making independent expenditures of two thousand
five hundred dollars ($2,500)or more for the purpose of supporting or opposing one (I)or more
candidates.
Small-scale &cue committee means a committee otherwise meeting the definition of issue
committee that has accepted contributions,contributions in kind or expenditures in an amount that
does not exceed two thousand five hundred dollars ($2,500.)during an applicable election cycle
for the major purpose of supporting or opposing any ballot issue or ballot question.
The following are each treated as a single small-scale issue committee:
a.A small-scale issue committee that supports or opposes a common ballot measure if the
committee is established,financed,or controlled by a single corporation or its subsidiaries;
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b.A small-scale issue committee that supports or opposes a common ballot measure if the
committee is established,financed,maintained,or controlled by a single labor organization or the
affiliated local units it directs;and
c.A small-scale issue committee that supports or opposes a common ballot measure if the
committee is established,financed,maintained,or controlled by substantially the same person,
group of persons,or other organizations.
Section 3.That Section 7-134 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec.7-134.Registration of committees;termination.
(a)All candidate committees,political committees and issue committees shall register with the
City Clerk before accepting any contributions or contributions in kind or making any
expenditures.Registration must be on a form provided by the City Clerk and must include
the following,together with any other information required to complete the registration form.
(7)The name and address of the financial institution in which all contributions received by
the committee are deposited in a separate account bearing,in the case of a candidate
committee,the name of the candidate,or in the case of a political or issue committee,
the name of the person authorized to act as the registered agent for the committee,and
documentation of such account reasonably satisfactory to the City Clerk;and
Section 4.That Section 7-135 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.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:
d.Contributions made to a candidate committee by another candidate committee
established by the same individual as a candidate for the office of Mayor or
Councilmember.
(c)Joint contributions.No person shall make a contribution jointly with another person through
the issuance of a check drawn on a jointly owned account unless:(i)the total amount of the
joint contribution is less than the maximum amount that can be contributed by one (I)person
under the contribution limits established in Subsection (a)of this Section or (ii)the check is
signed by all owners of the account,in which event the amount of the total contribution shall
be allocated equally among all such persons unless a different allocation is specified on the
face of the check.No candidate committee shall knowingly accept a contribution made in
violation of this Subsection (c).
(d)Contributions in excess if limits.No later than ten (10)business days after receiving a
contribution or contribution in kind in excess of the limits set forth in this Section,the
committee that received the contribution shall remit the excess to the contributor or pay to the
contributor the value of the contribution in kind.
(e)No candidate committee,issue committee,small-scale issue committee or political committee
shall knowingly accept contributions or contributions in kind from any person who is not a
citizen of the United States,from a foreign government or from any foreign corporation that
does not have authority to transact business in this State pursuant to Article 115 of’Title 7,
C.R.S.,or who is prohibited from contributing pursuant to the Charter of the City of Fort
Collins or this Article.
(0 No issue committee,small-scale issue committee or political committee shall make a
contribution or contribution in kind to any other committee or to any candidate.
(h)Recordkeeping.
(1)All contributions and contributions in kind received by a candidate committee,small-
scale issue committee,issue committee or political committee shall be documented and
deposited and maintained in a financial institution in a separate account that complies
with Subsection 7-l34(a)(7).Following any election in which the committee received
contributions,the committee shall maintain all records pertaining to contributions and
related accounts for one (1)year following the date the final disclosure report is due
under Section 7-136 or the date the committee terminates,whichever is later,unless a
complaint has been filed under Subsection 7-145(a)alleging a violation of the provisions
of this Article,or the person or committee has received notice of an investigation or
prosecution of a violation of this Article by the City or other law enforcement authority,
in which case they shall be maintained until final disposition of the complaint and any
consequent court proceedings.Such records shall be subject to inspection in connection
with any investigation or other action to enforce the terms of this Article.
(2)Following any election in which the committee made any expenditure,the committee
shall document all expenditures and shall maintain all records pertaining to said
expenditures,including but not limited to invoices,receipts,instruments of payment,and
copies of any public communications produced as a result of the expenditure,for one (1)
year following the date the final disclosure report is due under Section 7-136 or the date
the committee terminates,whichever is later,unless a complaint has been filed under
Subsection 7-145(a)alleging a violation of the provisions of this Article,or the person
or committee has received notice of an investigation or prosecution of a violation of this
Article by the City or other law enforcement authority,in which case they shall be
maintained until final disposition of the complaint and any consequent court
proceedings.Documentation shall include the name and address of the vendor(s)or
payee(s)providing the property,materials,or services and the amount of the
expenditure.Such records shall be made available within three (3)business days upon
request of the City and subject to inspection in connection with any investigation or other
action to enforce the terms of this Article.
(i)Reimbursements prohibited.No person shall make a contribution or contribution in kind to a
candidate committee,issue committee,small-scale issue committee or political committee
with the expectation that some or all of the amounts of such contribution will be reimbursed
by another person.No person shall be reimbursed for a contribution or contribution in kind
made to any candidate committee,issue committee,small-scale issue committee or political
committee,nor shall any person make such reimbursement.An unexpended campaign
contribution returned to a contributor or compensation for a contribution in kind by a
committee pursuant to §7-135(c)shall not be considered a reimbursement.
~A candidate committee,issue committee,small-scale issue committee or political committee
shall not coordinate its expenditures or activities with,or share information with,any other
committee and shall not conduct its campaign activities in a manner that has the effect of
circumventing any restrictions or limitations on campaign contributions,expenditures or
reporting set forth in this Article.
Section 5.That Section 7-136 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec.7-136.Disclosure;filing of reports.
(b)For purposes of complying with the requirements of this Section,an issue committee,political
committee or small-scale issue committee consisting of an organization whose primary
purpose is not to support or oppose ballot issues or candidates shall report only those
contributions and contributions in kind accepted,expenditures made and obligations entered
into for the purpose of supporting or opposing a ballot issue or ballot question or candidate.
Such committee shall not be required to report donations,membership dues or any other
payments received and for non-election purposes except to the extent such amounts are used
or set aside to be used for the purpose of supporing or opposing a ballot issue or ballot
question or candidate.
(d)The reports required by this Section shall include the balance of funds at the beginning of the
reporting period,the total of contributions and contributions in kind received,and the total of
expenditures made during the reporting period.The reports shall also include cumulative
totals of contributions and contributions in kind received and a cumulative total of
expenditures made by the committee during the election cycle.
(e)All reports shall be submitted on forms provided by the City Clerk and shall be complete and
correct in all respects.Reports shall be current in all respects as of two (2)days prior to the
date upon which each such report is to be filed.
(f)A report required to be filed by this Section is timely if the report is filed electronically not
later than midnight Mountain Standard Time on the date due.Notwithstanding the foregoing,
the report that is due by noon on the Friday before the election must be filed by noon
regardless of the manner of filing.
(i)Except as specified in this Subparagraph (i),the disclosure requirements specified in this
Section shall not apply to a small-scale issue committee.To the extent there is any conflict
between the small-scale issue committee provisions of Subparagraphs (i),~)‘(k),and (1)of
this Section 7-136,those Subparagraphs shall control.Any small-scale issue committee shall
disclose or file reports about the contributions,contributions in kind or expenditures it has
made or received or otherwise register as an issue committee in connection with accepting or
making such contributions or expenditures in accordance with the following alternative
requirements:
(1)Any small-scale issue committee that accepts contributions or contributions in kind or
makes expenditures in an aggregate amount during any applicable election cycle that
does not exceed two hundred fifty dollars ($250.)is not required to disclose or file
reports about the contributions,contributions in kind or expenditures it has made or
received or otherwise register as an issue committee in connection with accepting such
contributions or contributions in kind or making such expenditures.
(2)Any small-scale issue committee that accepts contributions or contributions in kind or
makes expenditures in an aggregate amount during any applicable election cycle of
between two hundred fifty dollars ($250.)and two thousand five hundred dollars
($2,500.)shall register with the City Clerk within ten (10)business days of the date on
which the aggregate amount of contributions or expenditures exceeds two hundred fifty
dollars ($250.).The registration required by this subparagraph must be on a form
provided by the City Clerk and must include the following,together with any other
information required to complete the registration form:
W Except as required by Subsection 7-135(0(2),no small-scale issue committee described in
subsection (0(2)is required under this Article to disclose or report any contributions,
contributions in kind or expenditures it has made or received,so long as it continues to meet
the definition of small-scale issue committee.
(k)Within seven (7)days of the date on which a small-scale issue committee accepts
contributions or contributions in kind or makes expenditures in an aggregate amount during
any applicable election cycle that exceeds two thousand five hundred dollars ($2,500.),the
committee shall:
(1)through its registered agent,report this change in the committee’s status to the City Clerk;
and
(2)report to the City Clerk on an approved form,for each particular contribution,
contribution in kind or expenditure accepted or made,the name and address of each
person who has made such contribution or contribution in kind and the amount of each
specific contribution,contribution in kind and expenditure accepted or made by the
committee.
(I)Once any issue committee that began as a small-scale issue committee accepts contributions
or contributions in kind or makes expenditures in an aggregate amount during any applicable
election cycle that exceeds two thousand five hundred dollars ($2,500.),the committee shall
from that point forward make disclosure of any contributions,contributions in kind or
expenditures it accepts or makes not already reported under Subparagraph (k)and comply
with all requirements under this Article applicable to issue committees.
Section 6.That Section 7-139 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec.7-139.Independent expenditures.
(a)Any person,excluding a committee required to register under this Article,who makes
independent expenditures in connection with any particular ballot totaling in the aggregate
more than two hundred fifty dollars ($250.)shall report any such independent expenditures
made after that threshold is met to the City Clerk on a form provided by the City Clerk no
later than three (3)business days after the day that funds are obligated to pay for said
independent expenditure.Said notice shall include the following information,together with
any other information required by the City Clerk:
(1)The name,address and telephone number of the person making the independent
expenditures;
(2)The name of the candidate whom the independent expenditures are intended to support
or oppose;
(3)The name and address of the vendor(s)providing the property,materials or services;
(4)A detailed description of the independent expenditures sufficient to allow for
determination of compliance with this section;
(5)The amount of the independent expenditures;
(6)The date the funds were obligated;and
(7)Copies of receipts,invoices,or other documentation related to the independent
expenditure.
(b)For the purposes of this provision,funds shall be considered to have been obligated as soon
as an agreement is reached for the provision of the property,materials or services in question,
regardless of when payment is to be made for such property or services.
(c)All independent expenditures shall be documented and all records pertaining to independent
expenditures,including but not limited to invoices,receipts,instruments of payment,and
copies of any public communications produced as a result of the expenditure,shall be
maintained for one (1)year following any election in which the funds were expended unless
a complaint has been filed under Subsection 7-145(a)alleging a violation of the provisions
of this Article,or the person or committee has received notice of an investigation or
prosecution of a violation of this Article by the City or other law enforcement authority,in
which case they shall be maintained until final disposition of the complaint and any
consequent court proceedings.Such records shall be made available within three (3)business
days upon request of the City and subject to inspection in connection with any hearing held
pursuant to this Article.
(d)Any person or persons,excluding a committee otherwise required to register under this
Article,who makes or make independent expenditures in connection with any particular City
election (including either candidate races or ballot questions or issues)totaling in the
aggregate two thousand five hundred dollars ($2,500)or more,shall register as an issue
committee or political committee,as applicable,within three (3)business days of having
made expenditures in excess of such threshold.The initial report of any such committee
shall provide the dates of any reports of independent expenditures previously made and the
source of funds for said previously reported expenditures.
Section 7.That Section 7-141 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec.7-141.Expenditures for political advertising;rates and charges.
(a)No committee shall pay to any radio or television station,newspaper,periodical,internet
advertiser or website provider,social media provider or other supplier of materials or services
a higher charge than that normally required for local commercial customers for comparable
use of space,materials or services.Any such rate shall not be rebated,directly or indirectly.
(b)Any radio or television station,newspaper,internet advertiser or website provider,social
media provider or periodical that charges a committee a lower rate for use of space,materials
or services than the rate such station,newspaper,internet advertiser or website provider,
social media provider or periodical or supplier charges another issue committee or candidate
committee for the same ballot measure or public office for comparable use of space,materials
or services shall report the difference in such rate as a contribution to the committee that is
charged such lower rate.A person who receives a discounted rate as described herein shall
be deemed to have received a contribution and to meet the definition of political committee,
issue committee or small-scale issue committee,as applicable and must comply with the
related requirements.
Section 8.That Section 7-143 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec.7-143.Violations and penalties.
(a)Except as provided in Subparagraph (b)herein,any person who knowingly violates or fails
to comply with the provisions of this Article as set forth in the following schedule commits a
civil infraction and is subject to a civil penalty as follows:
Code Section Penalty Amount
7-133 Candidate affidavit;disclosure No monetary penalty (disqualification per
statement;failure to file Section 7-133)
7-134 -Registration of committees;$150 first offense;$300 each subsequent
termination,offense
7-135 -Campaign contributions/expenditures.$100 first offense;$200 each subsequent
offense
7-136 -Disclosure;filing of reports.$100 first offense;$200 each subsequent
offense
7-137(b)-Reports to be public record.$50 first offense;$100 each subsequent
offense
7-138 -Unexpended campaign contributions.$100 first offense;$200 each subsequent
offense
7-139 -Independent expenditures $100 first offense;$200 each subsequent
offense
7-140 -Responsibility for communications.$50 first offense;$100 each subsequent
offense
7-141 -Expenditures for political advertising;$50 first offense;$100 each subsequent
rates and charges.offense
(b)Any person who undertakes any of the following commits a misdemeanor and is subject to a
fine or imprisonment in accordance with §1-15:
(1)Knowingly violates §7-135(e),(i),or (j),with the intent to circumvent the restrictions
of~7-135.
(2)Knowingly violates §7-136 with the intent to fraudulently misrepresent campaign
contributions or expenditures on a disclosure report;
(3)Knowingly violates §7-142;or
(4)Is found liable for a violation after the person has been found liable for two (2)or more
violations under this Article in a single election cycle.
(d)Each complaint received under Division 2 of this Article shall be posted on the City’s website
along with other campaign information.Records of communications between the City Clerk
and the complainant and between the City Clerk and the subject of any complaint shall be a
public record.
Section 9.That Section 7-145 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec.7-145.Allegation of campaign violation.
City Clerk
C,
(d)For complaints that do not allege a criminal violation,the complaints shall be subject to a
civil infraction process as provided herein:
(4)If the City Attorney determines that the complaint satisfies the three (3)elements in the
immediately preceding Subsection (2),the City Attorney shall notify the City Clerk who
will,in turn,notify the respondent in writing of the presumptive penalty in accordance
with §7-143(a)and that the respondent shall have ten (10)days from the date of the
notice to submit written evidence of its cure or diligent efforts to cure the violation,
including any amendments to any applicable report containing one or more deficiencies,
modified campaign materials or other proof that the violation has been corrected.The
respondent’s written response shall be due to the City Clerk no later than 5:00 p.m.on
the tenth (10111)day.In the event the tenth (10111)day is a City holiday,the response shall
be due no later than 5:00 p.m.the next business day.
(10)Any person that commits a violation of this Article shall be personally liable for the
penalties imposed.Any candidate shall be personally liable for penalties imposed upon
the candidate or the candidate’s committee and may use campaign contributions to pay
penalties.
Introduced,considered favorably on first reading and ordered published this 21st day of:A.DdtobePresejrfrn&Passa~on~SthZEfJulY.D.2O22*~
Passed and adopted on final reading this 5th
ATTEST:
day of u y.A.D.
c2~~20~
City Clerk
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