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HomeMy WebLinkAboutItem 09 - Second Reading of Ordinance No. 1682 (2020 Series) - Electronic Campaign Statements Department Name: Administration Cost Center: 1021 For Agenda of: May 19, 2020 Placement: Consent Estimated Time: N/A FROM: Greg Hermann, Deputy City Manager Prepared By: Teresa Purrington, City Clerk SUBJECT: SECOND READING AND ADOPTION OF ORDINANCE NO. 1682 (2020 SERIES) AMENDING CHAPTER 2.40 OF THE CITY OF SAN LUIS OBISPO MUNICIPAL CODE REQUIRING ELECTRONIC FILING OF CAMPAIGN DISCLOSURE DOCUMENTS AND PROVIDING FOR ADMINISTRATIVE ENFORCEMENT OF CAMPAIGN REGULATIONS VIOLATIONS RECOMMENDATION Adopt Ordinance No. 1682 (2020 Series) amending Chapter 2.40 (Election Campaign Regulations) of the City of San Luis Obispo Municipal Code adding a subsection to Section 2.40.060 (Campaign Statements) titled Electronic Signature and Submission of Campaign Disclosure Documents. DISCUSSION Pursuant to California Government Code Section 84615, the City Council must officially adopt Ordinance No. 1682 (2020 Series) (Attachment A) memorializing their approval to require and authorize complete electronic signature and submission of electronic campaign disclosure forms. Furthermore, certain defined criteria is prescribed that must be satisfied by a local government agency, including, among others, that the system be available free of charge to filers, available to the public to view filings and include procedures for filers to comply with the requirement that they sign statements and reports under penalty of perjury. Tonight’s action is the final step to implement electronic filing. In addition, this amendment makes a change the penalties section which allows for the City Clerk to issue a Notice of Violation and/or Administrative Citation for those violations that the City Attorney’s office does not find warrant a civil action and/or criminal prosecution. Previous Council Action • On December 12, 2017, the City Council adopted Ordinance No. 1643 (2017 Series) (Attachment C). The purpose of this ordinance was to readopt Chapter 2.40 (Campaign Regulations), removing the expiration provision and incorporating minor modificat ions to continue regulating local election campaigns. • On May 5, 2020, the City Council voted unanimously to introduce Ordinance No. 1682 (2020 Series). Item 9 Packet Page 75 Policy Context By eliminating manual processing of filings, electronic filing requirements will conserve resources and ensure the public has access to information disclosed in campaign statements and reports in a timelier manner, and as such, is consistent with the City’s Organizational Values of dedication to providing quality service through innovative use of resources to best serve the community and promote public trust. Public Engagement This item was on the May 5, 2020 agenda and will be again for final adoption on June 2, 2020 and will follow all required postings and notification requirements. The public will have an opportunity to comment on this item during or before the meeting. ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. FISCAL IMPACT Budgeted: Yes Budget Year: 2019-20 Funding Identified: N/A Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund $4,000 $2,000 $6,000 State Federal Fees Other: Total $4,000 $2,000 $6,000 The Annual subscription for Statement of Economic Interest (Form 700) is $4,000 and is budgeted in the City Clerk budget. Adding the Campaign Statements is an additional $2,000 annually. The additional funding is available in the City Clerk’s budget. There is no additional impact to the General Fund. Approval of an electronic and paperless filing would ultimately result in long term savings in staff time. ALTERNATIVES Deny the amendment. Staff does not recommend this action because we believe that electronic and paperless filing would ultimately result in long term savings and offer a streamlined process to serve those interested in running for office. Item 9 Packet Page 76 Attachments: a - Ordinance No. 1682 (2020 Series) b - Legislative Draft Item 9 Packet Page 77 O 1682 ORDINANCE NO. 1682 (2020 SERIES) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING TITLE 2 OF THE CITY OF SAN LUIS OBISPO MUNICIPAL CODE ADDING TO SECTION 2.40.060 – ELECTRONIC SIGNATURE AND SUBMISSION OF CAMPAIGN DISCLOSURE DOCUMENTS, AND AMENDING SECTION 2.40.100 (CIVIL ACTIONS) TO PROVIDE FOR ADMINISTRATIVE ENFORCEMENT OF VIOLATIONS WHEREAS, On January 1, 2013, Assembly Bill 2452 went into effect adding section 84615 to the California Government Code, which allows local government agencies to require an elected officer, candidate, committee or other person to file statements, reports, or other documents online or electronically with its local filing officer ; and WHEREAS, the City Council expressly finds and determines that the City Clerk’s web- based system contains multiple safeguards to protect the integrity and security of the data, and will operate securely and effectively and will not unduly burden filers; and WHEREAS, the software used by the City Clerk's electronic filing system has been certified by the Secretary of State and meets the requirements set by Government Code Section 84615; and WHEREAS, the City Clerk will operate the electronic filing system in compliance with the requirements of California Government Code Section 84615 and any other applicable laws. NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. Purpose. The purpose of this Ordinance is to require online electronic filing of campaign statements and require online reporting of contributions and independent expenditures relating to elections of candidates to City offices and the qualification or passage of local ballot measures within the City as currently required under the Political Reform Act, (commencing with California Government Code Section 84200 et seq.) in order to facilitate review and maximize the availability of this information to the public. SECTION 2. Authority. This Ordinance is adopted pursuant to California Government Code Section 81013, which authorizes local agencies to impose additional requirements on any person so long as the requirements do not prevent the person from complying with the Political Reform Act. Item 9 Packet Page 78 Ordinance No. 1682 (2020 Series) Page 2 O 1682 SECTION 3. Application of Ordinance. The provisions of this Ordinance shall only apply to Candidates seeking election to a City office, their Controlled Committees or Committees formed or existing primarily to support or oppose their candidacies, and to Committees formed or existing primarily to support or oppose a Candidate or to support or oppose the qualification, passage or defeat of, a local ballot measure which is being voted on only in the City, and to Local General Purpose Committees active only in the City. In the event a City Candidate also runs for a non-City office, the provisions of this Ordinance do not apply to the Local Candidate’s campaign for such other office, nor to any Committee established solely for the purpose of running for such st ate, federal, city, special district, or other non-City office. SECTION 4. Section 2.40.060 C (Campaign Statements. Filing.) of Chapter 2.40 (Election Campaign Regulations) is hereby amended to read as follows: C. Filing. Each document required to be filed in this chapter shall be filed with the city clerk, and elsewhere as may be required by the Government Code, in accordance with such deadlines as may be specified by the elections official or otherwise required by applicable law. SECTION 5. Section 2.40.060 E (Electronic Campaign Disclosure) shall be added to Section 2.40.060 (Campaign Statements) of Chapter 2.40 (Election Campaign Regulations) to read as follows: E. Electronic Campaign Disclosure. Each Candidate, Candidate Controlled Committee and Independent Committee that is required to file a semi-annual campaign statement, a pre-election campaign statement, or an amended campaign statement with the City Clerk pursuant to the Political Reform Act, and that receives a total of $2,000 or more in Contributions or makes a total of $2,000 or more in Independent Expenditures, shall file the statement with the City Clerk in an electronic format. 1. In addition to any other report required by this Ordinance, all Persons subject to the requirements of this Section shall file the following reports with the City Clerk in an electronic format: a. A report disclosing a Contribution received by or made to a Candidate or local ballot measure, or an Independent Expenditure made for or against a Candidate or local ballot measure, of $2,000 or more during an Election Cycle. The report shall be filed within twenty-four (24) hours of the Independent Expenditure or receipt of the Contribution. b. A report disclosing a Contribution received by or made to a Candidate or a local ballot measure, or an Independent Expenditure made for or against a Candidate or local ballot measure, of $2,000 or more at any time other than during an Election Cycle. The report shall be filed within ten (10) business days of the Independent Expenditure or receipt of the Contribution. 2. A Candidate or Committee that has filed an electronic statement or report is not required to file a paper copy. Item 9 Packet Page 79 Ordinance No. 1682 (2020 Series) Page 3 O 1682 3. Once a Candidate or Committee is subject to the electronic filing requirements imposed by this Ordinance, the Candidate or Committee will remain subject to the electronic filing requirements until the Candidate or Committee files a termination statement pursuant to the Political Reform Act. 4. Any Candidate or Committee not required to file an electronic statement or report by this Section may voluntarily opt to file an electronic statement or report by submitting written notice to the City Clerk’s Office. A Candidate or Committee that opts to file an electronic statement or report is not required to file a paper copy. SECTION 5. Sections 2.40.100 (Civil actions), subsections A and D, of Chapter 2.40 (Election Campaign Regulations) shall be amended to read as follows: 2.40.100 Civil or Administrative actions. A. Any person who intentionally or negligently violates any provision of this chapter relating to campaign contribution limits or disclosures may be liable in a civil action brought by the city attorney or by a person residing within the city for an amount not more than three times the amount of the unlawful contribution or expenditure. If, after consultation with the City Clerk and review of the facts surrounding an alleged violation, the City Attorney does not find the alleged violation to warrant the filing of a civil action and/or criminal prosecution, the City Clerk may issue a Notice of Violation and/or Administrative Citation pursuant to Chapter 1.24 of the Municipal Code. D. Any person, before filing a civil action pursuant to this section, shall first file with the city attorney a written request for the city attorney to commence the action or the city clerk to issue a Notice of Violation as provided in Section A. The request shall contain a statement of the grounds for believing a cause of action exists and/or a violation has occurred. The city attorney and/or the city clerk shall respond within ten days after receipt of the request indicating whether he or she intends to file a civil action, notice of violation or administrative citation. If the city attorney or the city clerk indicates in the affirmative and files a suit or serves a notice of violation and/or administrative citation within thirty days thereafter, no other action may be brought, unless any action by the city attorney or city clerk is dismissed without prejudice. SECTION 6. Ordinance Number 1643 (2017 Series) is hereby superseded to the extent inconsistent herewith. Item 9 Packet Page 80 Ordinance No. 1682 (2020 Series) Page 4 O 1682 SECTION 7. A summary of this ordinance, together with the names of Council members voting for and against, shall be published at least five (5) days prior to its final passage, in The New Times, a newspaper published and circulated in this City. This ordinance shall go into effect at the expiration of thirty (30) days after its final passage. INTRODUCED on the 5th day of May 2020, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the ____ day of ________, 2020, on the following vote: AYES: NOES: ABSENT: ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Teresa Purrington, City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ______________________________ Teresa Purrington City Clerk Item 9 Packet Page 81 Ordinance No. 1643 (2017 Series) 0 1643 2.40.010 Title. This chapter may be cited as the election campaign regulations of the city. 2.40.020 Purpose and intent. A. It is the purpose and intent of this chapter: 1. To promote integrity, honesty, fairness, and transparency in municipal election campaigns. 2. To prevent corruption, or the appearance of corruption, which results from the real or imagined influence of large contributions on the conduct or actions of candidates elected to office. 3. To ensure a level of discussion of public issues adequate for a viable campaign by providing voters with the information necessary to make an assessment of each candidate or measure before voting. 4. To require public disclosure of campaign contributions and expenditures made in support of or in opposition to candidates or measures in municipal elections. 5. To place realistic and enforceable limits on the amounts persons may contribute in municipal election campaigns. 6. To ensure that funds contributed to a campaign committee are used solely for campaign purposes. 7. To provide full and fair enforcement of all the provisions of this chapter. B. By enacting this chapter, the council does not intend to deprive or restrict any citizen of the exercise of rights guaranteed under the United States Constitution and the California Constitution. C. The city council takes specific notice of the findings and declarations made in the Political Reform Act and finds and declares them applicable to San Luis Obispo and a basis for enacting this chapter. D. It is the intent of this chapter to impose limits on the amount of money that may be contributed to a candidate or controlled committee to achieve the purposes specified in this section. This chapter is not intended, and shall not be construed, to establish any reporting, filing, or procedural requirement in addition to, or different from, the Political Reform Act or the regulations adopted by the Fair Political Practices Commission (FPPC), except as specifically set forth in Sections 2.40.050 and 2.40.090 infra. 2.40.030 Definitions. The terms used in this chapter shall have the same definitions as specified in the Political Reform Act and FPPC regulations. In those cases where definitions in the Political Reform Act or FPPC regulations contain a specific reference to any state election, candidate, or electoral criteria, the definition shall be modified to reflect the municipal equivalent, or, in the absence of a municipal equivalent, to delete the specific reference. 2.40.040 Contribution limitations. A. Contributions by Persons to Candidates and/or Controlled Committees. No person shall make any contribution to a candidate and/or any controlled committee connected with that candidate, with respect to any single election, which would cause the total amount contributed by such person to the candidate and any controlled committee connected with that candidate, when combined, to exceed three hundred dollars. Item 9 Packet Page 82 Ordinance No. 1643 (2017 Series) 0 1643 B. Acceptance or Solicitation by Candidates or Controlled Committees. No candidate or controlled committee shall solicit or accept any contribution from any person which would cause the total amount contributed by such person, with respect to any single election, to the candidate and/or any controlled committee connected with that candidate, when combined, to exceed the sum of thr ee hundred dollars. C. Contributions by Candidates. The provisions of subsections A and B of this section shall not apply to contributions from a candidate or from his or her immediate family to any controlled committee connected with that candidate, nor to the expenditure, by the candidate, of his or her personal funds. For purposes of this section, "immediate family" means a candidate's or elected officeholder's spouse or domestic partner, and/or dependent children. D. Anonymous Contributions. No candidate or controlled committee shall accept anonymous contributions, with respect to any single election, which exceed fifty dollars. Subject to the provisions of state law, in the event a candidate or controlled committee receives an anonymous contribution that would result in a violation of this subsection, the candidate or controlled committee shall promptly pay that sum to the city for deposit into the general fund to be used to defray the costs of municipal elections. 2.40.050 Election campaign accounts. A. Campaign Bank Accounts. An individual who plans to run for a city elective office and who plans to accept contributions and make campaign-related expenditures must set up a campaign bank account at a financial institution with a branch located in the city of San Luis Obispo. B. Access to Records by City Clerk. The city clerk shall have full access at all reasonable hours to the bank's records concerning all election campaign accounts. 2.40.060 Campaign statements. A. Required Filing Schedule. Every campaign treasurer shall file with the city clerk campaign statements as required by the provisions of the Government Code and in a format acceptable to the city clerk. B. Contents. Each state campaign statement filed shall contain the information required under the provisions of the Government Code and any contributions greater than $50. C. Filing. Each document required to be filed in this chapter shall be filed with the city clerk during business hours, and elsewhere as may be required by the Government Code, in accordance with such deadlines as may be specified by the elections official or otherwise required by applicable law. D. Publication. The city clerk shall promptly, following receipt for filing, post a c opy of each campaign statement on the city of San Luis Obispo's website for public inspection, redacting personal information in accordance with state law. The city clerk shall report on the website of any candidate and/or committee that has failed to comply by the required deadline with the campaign statement requirements pursuant to this section or state law. In addition, the city clerk shall cause to be published a display ad in a newspaper of general circulation advising the public how and where to access copies of the filed campaign statements on the city of San Luis Obispo's website, at the time mail ballots are distributed for said election. Item 9 Packet Page 83 Ordinance No. 1643 (2017 Series) 0 1643 E. Electronic Campaign Disclosure. Each Candidate, Candidate Controlled Committee and Independent Committee that is required to file a semi-annual campaign statement, a pre- election campaign statement, or an amended campaign statement with the City Clerk pursuant to the Political Reform Act, and that receives a total of $2,000 or more in Contribution s or makes a total of $2,000 or more in Independent Expenditures, shall file the statement with the City Clerk in an electronic format. 1. In addition to any other report required by this Ordinance, all Persons subject to the requirements of this Section shall file the following reports with the City Clerk in an electronic format: a. A report disclosing a Contribution received by or made to a Candidate or local ballot measure, or an Independent Expenditure made for or against a Candidate or local ballot measure, of $2,000 or more during an Election Cycle. The report shall be filed within twenty-four (24) hours of the Independent Expenditure or receipt of the Contribution. b. A report disclosing a Contribution received by or made to a Candidate or a local ballot measure, or an Independent Expenditure made for or against a Candidate or local ballot measure, of $2,000 or more at any time other than during an Election Cycle. The report shall be filed within ten (10) business days of the Independent Expenditure or recei pt of the Contribution. 2. A Candidate or Committee that has filed an electronic statement or report is not required to file a paper copy. 3. Once a Candidate or Committee is subject to the electronic filing requirements imposed by this Ordinance, the Candidate or Committee will remain subject to the electronic filing requirements until the Candidate or Committee files a termination statement pursuant to the Political Reform Act. 4. Any Candidate or Committee not required to file an electronic statement or report by this Section may voluntarily opt to file an electronic statement or report by submitting written notice to the City Clerk’s Office. A Candidate or Committee that opts to file an electronic statement or report is not required to file a paper copy. 2.40.070 Campaign signs. A. Severability. This section is a separate and severable provision of the election campaign regulations. B. Campaign Signs. Campaign signs shall not exceed three square feet per sign in residential zones and ten square feet per sign in nonresidential zones and shall be removed no later than ten days following the election. C. Definition. "Campaign sign" means a sign intended to draw attention to or communicate a position on any issue, candidate, or measure in any national, state, local, college or university campus election, the placement of which is in conformity with Section 15.40.300 (Prohibited signs); and which otherwise is not subject to regulation under Chapter 15.40 (Sign Regulations). Item 9 Packet Page 84 Ordinance No. 1643 (2017 Series) 0 1643 2.40.080 Responsibilities of city clerk. A. Duties. In addition to any other duties required of the city clerk under this chapter, the city clerk shall: 1. Prescribe and furnish, without charge, appropriate forms for all campaign statements, documents and reports required to be filed by this chapter. 2. Determine whether required statements and declarations have been filed and, if so, whether they conform on their face with the requirements of this chapter. 3. Promptly notify all persons who have failed to file a statement in the form and at the time required by this chapter. 4. Report, in writing, apparent violations of this chapter to the city attorney. 5. Promptly, following receipt for filing, post a copy of each campaign statement on the city of San Luis Obispo's website for public inspection. The city clerk shall report on the website of any candidate and/or committee that has failed to comply by the required deadline with the campaign statement requirements pursuant to this section or state law. In addition, the city clerk shall cause to be published one display ad in a newspaper of general circulation advising the public how and where to access copies of the filed campaign statements on the city of San Luis Obispo's website. 6. Compile and maintain a current log of all filed statements pertaining to each reporting committee. 2.40.090 Criminal misdemeanor actions. Any person who violates any provision of this chapter is guilty of a misdemeanor. Any person who causes any other person to violate any provision of this chapter, or who aids and abets any other person in the violation of any provision of this chapter, shall be liable under the provisions of this section. 2.40.100 Civil or Administrative actions. A. Any person who intentionally or negligently violates any provision of this chapter relating to campaign contribution limits or disclosures may be liable in a civil action brought by the city attorney or by a person residing within the city for an amount not more than three times the amount of the unlawful contribution or expenditure. If, after consultation with the City Clerk and review of the facts surrounding an alleged violation, the City Attorney does not find the alleged violation to warrant the filing of a civil action and/or criminal prosecution, the City Clerk may issue a Notice of Violation and/or Administrative Citation pursuant to Chapter 1.24 of the Municipal Code. B. If any person files an original city campaign statement after any deadline imposed by this chapter, he or she shall pay, in addition to any other penalties provided for under this chapter, the sum of one hundred dollars per day after the deadline until the statement or report is filed. Liability may not be enforced if on an impartial basis the city clerk determines that the late filing was not willful and that enforcement of the liability will not further the purposes of this chapter. In addition, the city clerk may assess any applicable fines in accordance with state law. C. If two or more persons are responsible for any violation, they shall be jointly and severally liable. Item 9 Packet Page 85 Ordinance No. 1643 (2017 Series) 0 1643 D. Any person, before filing a civil action pursuant to this section, shall first file with the city attorney a written request for the city attorney to commence the action or the city clerk to issue a Notice of Violation as provided in Section A. The request shall contain a statement of the grounds for believing a cause of action exists and/or a violation has occurred. The city attorney and/or the city clerk shall respond within ten days after receipt of the request indicating whether he or she intends to file a civil action, notice of violation or administrative citation. If the city attorney or the city clerk indicates in the affirmative and files a suit or serves a notice of violation and/or administrative citation within thirty days thereafter, no other action may be brought, unless any action by the city attorney or city clerk is dismissed without prejudice. E. In determining the amount of liability, the court may take into account the seriousness of the violation and the degree of culpability of the defendant. If a judgment is entered against the defendant or defendants in an action, the plaintiff shall receive fifty percent of the amount recovered. The remaining fifty percent shall be deposited into the city treasury. In an action brought by the city attorney, the entire amount shall be paid to the city treasury. F. No civil action alleging a violation of any provision of this chapter shall be filed more than four years after the date the violation occurred. 2.40.110 Injunctive relief. The city attorney or any person residing in the city may sue for injunctive relief to enjoin violations or to compel compliance with the provisions of this chapter. 2.40.120 Cost of litigation. The court may award to a plaintiff or defendant who prevails in any action authorized by this chapter his or her costs of litigation, including reasonable attorneys' fees; provid ed, however, no costs of litigation or attorneys' fees shall be awarded against the city. 2.40.130 Construction of provisions. A. This chapter shall be in addition to all other city and state laws applicable to municipal elections. Unless the contrary is stated or clearly appears from the context, the definitions and terms set forth in the Government Code shall govern the interpretations of terms used in this chapter. This chapter shall be construed liberally in order to effectuate its purposes. B. If any provision of this chapter, or the application thereof to any person or circumstance, is held invalid, the validity of the remainder of the chapter and the applicability of such provision to other persons and circumstances shall not be affected thereby. Item 9 Packet Page 86