HomeMy WebLinkAbout20161229_Settlement_BlackAGREF E-NT W LIEU OF CIVIL ACTION
This Agnemew is entered iato this ;Zq day of
San Luis Obispo Oil behalf of the People Dec, 1� 2016 by and bet�veen tfie OtY Attorney of
'City Attor"ey") and Cory Black collet
referred herein. "'Parties" In full and Final resolution of allegations raised in the Complaint as defined
below,
RECITALS
A. .Jail MaiAx campaigned to b� re-elected to serve as Mayor of the city F
zMothe.r two year terns to begin on December 1 2016. e of •San Luis Obispo or
-8. The City of &m Leis Obispo (;;C1ty'�) adopted Chapter 2.40 of the San Lul's Obispo TVI-Luil'cipal
Code ("SLOMC',), chic sets f0rtJ1 10c.al Campaign tegulations govcnjin
for Coullefl, g the campaigns of owididates
C. The City Attorn�y, a.5 City prosecutor`, is authorized to enforce Chapter n 2.40 of the SLOMC i th
name of the People. e,
D, On December 21, 20165 the City Attomey reocived a complaint against Black alleging that he
violated SLOMC section 2.040.040(A),, which prohibits any person from making imy contribution to a
candidate and/or any controlled core lm
Ittee connected With that candidate, with respect to any single
election, which would ciluse the total arnount contributed by suc
coh MsOn tO the caudidate and any
controlled committee connected with that candidate, When combined, to exceed tivee hundred dollars,
The complaint alleged, that .Wack personally made a $300 monetary contribution to J-an Marx for Mayor
0 16 '-.s campaign T that B lack Meade a secoild $3 00 contribution o M
t Jan arx, for Mayor 2016's campa'
It
from acoiporatioll 'awhicli he was the Ch'ef Executive Officer and Chief Financial Officer, and in which
I rx r Mayor
lie and his wife were sole directors; and that Black made a third $300 contribution to Jan Ma for
2016's campaign froth a general purpose political 'i-Ui0Tj- CoMmittee for which hli�, served as assistant
tteasurer. The complaint ftirther alleged that tj je contributions violated the $300 carnpaign contribution
limit ("Complaint").
E. Black adliaitted that he mado the individual COntribution, but disputes that be intentioiially
violated local C-,'-'mPai,;rn contributiOn .1imits by issuing a check fi-om the corporatj()tj for which he- was the
Chief Executive Officer and Chief Fiziancial Officer. Black contends that he sought informal advioe from
the Fair Political Practices Goan Mission, and stated that he was advised that because he did not have a
controlling Ig iaterest ',n the corp oratioa that the contribution was from a scparaU
the Jan,,, entity. Upon inquiry ftom
Marx's cam
gn manager, Black advised the carnpaign manager that the contribution was legal.
F. Black also contends that the treasurer of the political action com'tnittee, not Mack, was authorized
to make contributions from t1le p0j* 'cal action comm
Mx political , ittee. Black contends that no contribution c-,an be
Made W' out the treasurer's agreement. However, the treasurer stated thcat no oontribution 's made
I I
without agreemetit by bo-di Black and the treasurer. Uiry pon in from 1
coan Marx regarding all three
ntributions, Black advised the candidate that the, treasuxer, not Black, was authorized to make
contributions, said further, all three c�ontribations were legal.
G. With regard to the contribution made by the corpotration, based 011 evidence Obtained by the, City
Attomey from Black, Jan Marx, Jan Marx's campaign manager,, and from the treasurer of the political
action committee, it appears that there was a techaical violation of th�; City's ele ti .1
'bution I'm itC on oampaign
coAtr I I .
H- With regard to the contribution made by the political action committee, based on evidence
obtained by the City attoiney f . ronj 131ack and the tmasurer of the political action conlinittee, it appears
that there is insufficient evidence to support find'
Contribution limit, ng a violation Of the. City's election campaign
L The City Attomey finds that Chapter 2,40 of the SLOMC is silent otl how dete.tniine when
' ShOuld be aggregated, and therefore,, the Fair Political PractlOcs Commission Regulation
18215.1 ("Regulation 18215.1"), which governs aggmgatioijs of contTibutiolis'
, S applicable in the,
absence of local regulation.
J. Neither 131ack aor the catididate believed that: the contribution from the co oration must be
i
aggregated with the individual con'tributioa despite the fact B lack- was the Chlef Executive Officer and
Chief Financial Officer, because Black did not have a majority. interest in the eorparatloTl,
K, City Attorney finds that as Chief Execut,
We. Officer and Chief F"T
Man C, jai Officer, Black directed
alid 00titrolled the contribution from the corporation, requyring aggregat'on of the, tivo cont riblIti,011S u e ndr
Regulation 18215.1 (b), which provides," The contributions of an entity whose contributions are directed
T
and controlled by any individual shall be aggregate, d with cotitributions made by that individual and miy
Other entity whose contributions are directed and controlled by the same 'Individual",
L. The City Attorney further finds that neither Black nor the candidate, intended to violate tile Citys
election contribufllimit. on
I , Given the intent of ID lack aud -the candidate, the City Attorney finds that If a.
,civil action were pursued, under the standard set ford, Lwder section 2.4.0. 1 00(]E)� it is tulfik el that
I I e at the
pity would recover the max'
IMUM Penalty peniiitted.
I t 0 Ile,
M. nie Parties desire to avoid c0sdY lit'gation and to seek an expeditiotisresolu. ion f t
allegat'
Ions set forth W the Complaint consisteiit with tlie remedies allowed tinder the Municipal Code,
Therefore, in consideration of mutual beiRefits, provaises and agree-meuts set out hereinthe parties
agree as follows: ,
AGREEMENT
I Rigc_,s. The Recitals are incorporated herein as if fully set forth in the Agrsemejlt,
2, PU_MV0.nL2fEQU_a1tV. Pursuant to SLOMC Section 2,40. 1 OO(A), Black agrees to pay the amount of
$600 to the Cit3p treasury within 10 calendar days of the date of execution of this Agreemelit, .
I No -Further - The Ciqr Attorney, in her capacity as City prosecutor, a.grees to take ;10
further action pursuant to Chapter 2.40 arisiag from the allegatioJqs raised in the Complaint' provided,
however,, that 13laQk has satisfied the oin set forth n paragrapb 2.
4, Costs and Attorneys ]Pee.;;,. Each party shall bear his or heir o� attorney�s fees and costs,
5, �S()r�si t r f. This agreenielit shall be binding upon and shall inure to the benefit of, the
4ntet,eSt ()f the , pa
heirs, assigns and all Othersmccessors in I ft,eS hereto.
I
IN WITNESS )VM-RE-Of, the parties hereto have execute. this ag ment o the day and yea, t
tfirs
writt bove.,
C ar in�
yt#rny'o-ity of tau LiN PO
�s City Prosecutor for the People).. J-S
BY'
C ac