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HomeMy WebLinkAbout02/01/1994, 5A - CAMPAIGN REGULATIONS ORDINANCE MEETING TE• Q city of San -AS OBISpo rrEM NUM6EA WANGe COUNCIL AGENDA REPORT FROM: The Campaign Regulations Committee GlennaDeane Dovey, Chair PREPARED BY: Diane R. Gladwell, City Clerk;_:' SUBJECT: Campaign Regulations Ordinance RECOMMENDATION: Introduce an Ordinance to Print amending the Election Campaign Regulations as recommended by the Campaign Regulations Committee. DISCUSSION: The City's Election Campaign Regulations were first adopted in 1974 and have been amended five times, most recently in June, 1991. Periodic review of the regulations is necessary to ensure the regulations meet the desired goals of the City and are in compliance with changing State and Federal law. Pursuant to Municipal Code Section 2.40.150, On September 21, 1993, the Council appointed a nine-member Campaign Regulations Committee to commence review of the election campaign regulations, and requested that the committee make recommendations prior to February, 1994. The members include GlennaDeane Dovey (Chair), Richard Kranzdorf (Vice-Chair), Jesse Norris, Dominic Perello, Pierre Rademaker, Carla Sanders, Richard Schmidt, and Ken Schwartz. Hal Sweasey resigned because of time conflicts. The committee has met weekly to analyze current Federal, State and local election law. Ordinances from several other California Cities were reviewed for content analysis and comparison. The attached draft contains several significant amendments: 1. Committees. The current ordinance does not limit contributions or require disclosure for independent, general purpose,or primarily formed committees (PACs) which support or oppose candidates. The committee, however, did feel it was very important to apply the same contribution and disclosure requirements for all forms of committees, not just those controlled by candidates. The contribution limitations contained in §2.40.050(C)1 have been expanded to apply to all persons or committees (including independent committees) supporting or opposing candidates. In addition, the total contribution a person or committee can make in support or opposition to an individual candidate, including contributions to all committees l .. supporting or opposing such candidate, shall not exceed the recommended limit of $120. Finally, §2.40.055A has been added applying the same contribution limitations to all persons making independent expenditures. 2. Ballot Measure Committees. Although State law precludes us from restricting contributions to, or expenditures by, ballot measure committees, the committee is recommending we require them to establish a bank account within the County of San Luis Obispo. 3. Independent Expenditures. To prevent anonymous distribution or publication of material, the committee is recommending the addition of section 2.40.055, "Independent Expenditures:" 4. Election-Related Litigation. Provisions to treat election-related litigation expenses as contributions and an exception for the bank account closure requirement have been added. 5. Miscellaneous Provisions. An improved prioritization of the Purpose and Intent section, streamlining of the contribution refusal process, facsimile filing, and provisions for the appointment of the next Campaign Regulations Committee have been added. 6. Contribution limitations. After analyzing inflation rates and trends in local elections, the committee is recommending that the limitation ceiling be increased from $100 to $120 and the disclosure requirement be raised from $25 to.$30. Past changes include: Year Contribution Limit Disclosure Threshold 1974 $100 $10 1988 $100 $25 This subject was deliberated several times, and members had strong and varied opinions. Some members argued that the limits should be raised to fully accommodate inflation since 1974 (which would raise the contribution limit to approximately $316, and the disclosure threshold to approximately $79). Others suggested limits ranging from $200/$50 to $150/$50, while some felt strongly the limits should not be altered at all. The majority of the committee felt the need to control large contributions outweighed the need to keep a parallel pace with inflation. The last formal vote on the issue, taken on 11/22/93, was carried 5-1-2, with Commission Member Sanders voting no,Commission Members Jesse Norris and Richard Schmidt absent. Sign regulations and candidate fees were discussed, but the committee is not recommending any changes to current City regulations. ATTACHMENTS: Draft Ordinance ORDINANCE NO. (1994 SERIES) AN ORDINANCE OF THE CITY OF SAN LUIS OBISPO AMENDING THE ELECTION REGULATIONS OF MUNICIPAL CODE CHAPTER 2.40 BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. Chapter 2.40, Election Campaign Regulations, is revised as per attached Exhibit A. SECTION 2. A summary of this ordinance,approved by the City Attorney,together with the ayes and noes, shall be published at least five (5) days prior to its final passage in the Telegram-Tribune, a newspaper published and circulated in said city, and the same shall go into effect at the expiration of thirty (30) days after its said final passage. A copy of the full text of this ordinance shall be on file in the Office of the City Clerk and after the date following introduction and passage to print and shall be available to any interested member of the public. INTRODUCED AND PASSED TO PRINT by the Council of the City of San Luis Obispo at a meeting held on the 1st day of February, 1994, on motion of and seconded by and on the following roll call vote: AYES: NOES: ABSENT: Peg Pinard, Mayor ATTEST: Diane Gladwell, City Clerk 5�;3 Ordinance No. (1994 Series) Page Two APPROVED AS TO FORM: ry to y 5�1-�f Chapter 2.40 • ELECTION CAMPAIGN REGULATIONS Sections: 2.40.010 Title. 2.40.020 Purpose and Intent. 2.40.030 Definitions. 2.40.040 Campaign Treasurer-- Appointment required — Compliance with provisions required 2.40.050 Contributions. 2.40.060 Election Campaign Accounts. 2.40.070 Campaign Statements. 2.40.080 Gity ni__i_'s Defies. R;es°o Jxb1b: es o "; erk :.:::::... .::........:....:..:...:.:....::. . ty 2.40.090 Criminal Misdemeanor Actions. 2.40.100 Civil Actions. 2.40.110 Injunctive Relief. 2.40.120 Cost of Litigation. 2.40.130 Disqualification. 2.40.140 Construction of Provisions. 2.40.150 Council Study Committee. 2.40.160 Expiration of Provisions. Legislative Draft #4 1/7/94 2.40.010 - Title: This Chapter may be cited as the Election Campaign Regulations of the city. (Ord. 1067 Section 1 Ex. A (part), 1986: prior code Sec. 2800) 2.40.020 Purpose and Intent: A It is the purpose and intent of this Chapter: 4. To promote integrity, honesty and fairness in municipal election campaigns; 73. 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; and . To require public disclosure of campaign contributions and expenditures including, but not limited to, those made in support of, or in opposition to, candidates or measures in municipal elections; . To place realistic and enforceable limits on the o ti ' t Zs: `< et5t u: may eeatr-ibute rhAke' in municipal election campaigns; 5, 4. To ensure that funds contributed to a campaign committee are used solely for campaign purposes; 6. 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 the rights guaranteed under the United State Constitution and the California Constitution. (Ord. 1067 Section 1 Ex. A (part), 1986; prior code Sec. 2801) 2.40.030 Definitions. The following words or phrases shall have the meanings as indicated in this section when used in this Chapter. w5A -S 1 A "Campaign statement" means a report, made on a form prescribed and supplied by the City Clerk, which provides the information required by this Chapter of candidates and committees. Each campaign disclosure statement shall reflect all contributions received and expenditures made through the closing date specified in Section 2.40.070. B. "Campaign treasurer"means the duly appointed representative responsible for financial accounting and reporting as required by this Chapter. There shall be only one campaign treasurer at a time for each campaign committee. C. "Candidate"means any individual listed on the ballot for election to, or recall from, any city office, or who has otherwise taken action to seek such election to city office. D. "Committee" means any person or combination of persons which directly or indirectly receives contributions or makes expenditures or contributions for the purpose of expressly advocating the election or defeat of a clearly identified candidate& or, €ef supporting or opposing the passage of any measure(. . Committees shall be in ewe€ twe-eategefies "Reeipient „ n n ...:i:iv:ii:i:i:'::: .:"%:i:'v:.y.Y.•.;5::.................::V:)".:.....".w.....:ni:Fa:.::':>v`::a`:)i:):::,.i>:.':a .....:...::..:..:_.P';:^::i•.`:::.:,;:•..i••i:i::.:i": ':: .. . ') ec�pnt. otttee �onewicb1. te�resxitnctxototaltty7. r; Cruz :can 'yi:viiii::i.iiii„. :i:f..?:. ...:!i..i'!:F..:e••::...:::.:•;^;G+Y.•;_f?;..::.:<:i::::pi:'.:.i::..:nii::.n... ii:.::!.:.::!n:r :.n..vn:::.+M.i:ii%n•. >: >Inc�epertdentE ►ettturel✓ontntte.'.�:».oneetmaTreszttdependeut exentur�s-� : 3. trr rna�ra:�nY. ca1r:yrN.>�ttt Fiat tttryor atte behest of 2 E. "Contribution" fneees a�f5TIP r:i... :L}}::.w:.?:':i. ::.. A payment, loan, forgiveness of a loan, payment of a loan by a third party, or an enforceable promise to make a payment except to the extent that full and adequate consideration is received, unless it is clear from the surrounding circumstances that it is not made for campaign purposes. An expenditure made at the behest of a candidate or committee is a contribution to the candidate or committee, unless full and adequate consideration is received for making the expenditure. The teFm n " ineludes Money or property contributed by the candidate, as well as discounts or rebates granted by television and radio stations and newspapers which are not extended on an equal basis to all candidates for the same office. The purchase of ticket(s) for events such as dinners, luncheons, rallies and similar fundraising events. Contribution reporting requirements shall apply when the total accumulative ticket purchases by any one person exceed the limitations set forth in subsection C 3 of Section 2.40.050. The feFm n " fi Non-monetary contributions such as art objects, furniture, and similar items and also includes the receipt of anything of value transferred from one committee to another. The payment of compensation by any person for the personal services or expenses of any other person if such services are rendered or expenses incurred on behalf of a candidate or committee without payment of full and adequate consideration 5A-7 3 by the candidate or committee. 1s 4t' essioal seru�ce5 donated t assist in election-related Moo i The term "contribution" does not include; a Amounts received pursuant to an enforceable promise to the extent such amounts have been previously reported as a contribution. However,the fact that such amounts have been received shall be indicated in the appropriate campaign statement. The term. dee fiet inehide fir':: A payment made by an occupant of a home or office for costs related to any meeting or fundraising event held in the occupant's home or office if the costs for the meeting or fundraising events are $250 or less. 3 Notwithstanding the definition of "contribution" as set out in this subsection, the term does not include volunteer personal services or payments made by any individual for personal travel expenses, if such payments are made voluntarily without any understanding or agreement which shall be, directly or indirectly, repaid to the person. F. "Election" means any general, special or recall municipal election of the City of San Luis Obispo. G. "Expenditure" means a payment, forgiveness of a loan, payment of a loan by a third party, or an enforceable promise to make payment, unless it is clear from the surrounding circumstances that it is not made for political purposes. ?Ueu`e> 'eusesAae ttiic tts su ort electto reYated Zitigation n, ;ar conid.e:: „,, An expenditure is made on the date the payment is made or on the date consideration, if any, is received, whichever is earlier.. H. "Immediate family"means the candidate's or elected officeholder's spouse and 4 dependent children. I. "Independent expenditure" means an expenditure made by any person in connection with a communication which expressly advocates the election or defeat of a clearly identified candidatefs) or the qualification, passage, or defeat of a clearly identified measure(a or taken as a whole and in context, unambiguously urges a particular result in an election but which is not made to or at the behest of the affected candidate or committee. (Government Code Section 82031.) J. "Measure" means any charter amendment or other proposition which is submitted to a popular vote at any municipal election by the City Council, or which is submitted or is intended to be submitted to a popular vote at a municipal election by initiative, referendum or recall procedure whether or not it qualifies for the ballot. K "Person" means an individual, proprietorship, firm, partnership,joint venture, Cav > ; hits syndicate, business trust, company, corporation, association, committee i€ and any other organization or group of persons acting in concert. (Ord. 1067 Section I Ex. A (part), 1986; prior code Section 2802) 2.40.040 Campaign Treasurer--Appointment Required--Compliance with Provisions Required. A. Each candidate and/or each committee shall appoint a campaign treasurer. A candidate may serve as the campaign treasurer for his/her campaign or for his/her committee. B. Each campaign treasurer shall be responsible for complying with the requirements of Title 9 of the California Government Code in addition to complying with the provisions of this Chapter. (Ord. 1067 Section I Ex. A (part), 1986; prior code Section 2803) 5A_ 9_ 9 5 / �"C 2.40.050 Contributions. A. Transmittal to Campaign Treasurer. All persons who receive contributions on behalf of a candidate or committee shall transmit the contributions in full to the campaign treasurer promptly, together with a list showing the name and address of each contributor and the amount of the contribution, subject to the exceptions provided in this section. B. Refusal to Accept. A candidate or a campaign treasurer shall have full authority to refuse and to return any contribution offered, provided the contribution is returned within 14 days of receipt C. Prohibitions. 1. No person other than a candidate or the candidate's immediate family members, shall make, and no person; �campaign treasurer shall solicit or accept any contributions which will cause the total . nr..0:.;,;:w:aY::^C:ixn.:m:}i:.y.:.:{.v:.vy:!i{:!!ni:iY:n?•pi:i:m:ii:iii}'F..i:.:!,:!!i^:i^i::!:' .«. _t�u.cnntt7'b�ted>.by such� ��nth respceti to a strt�l,��iectton in support of pr �tt;,s �ositii�l ;t��:sucli:;:candidate,zric�ucting rcintrilyut��tis to all ctyrnnuttees supporting Qx4osltigrsuh c ►d�ctet exceed. 20 A :., 2. The above contribution limitations do not apply to committees formed primarily to support or oppose the qualification or passage of a ballot measure. Ballot measure committees may not make contributions to candidates or committees which make contributions to candidates. 3. No person shall make a contribution for any other person under an assumed name or under the name of any other person. 4. No candidate nor any committee shall retain any amount of M:$30 JA-10 6 or more from one person or source without obtaining the name and address of that contributor. Any anonymous contribution of Q5.$3a or more shall be forwarded to the City Clerk and deposited in the City's treasury. 5. For the purposes of this section, a contribution shall be deemed received at the time of actual receipt by the campaign treasurer. 6. No pess candidate or candidate's committee shall make or accept any contribution of MITor more after five p.m., Monday, eight days preceding the day of election, except that a candidate and/or a candidate's immediate family shall be permitted to make additional contributions to the candidate or to the candidate's committee. 7. Any contribution of$1000 or more from a single source which is made to or received by a committee primarily formed to support or oppose a ballot measure during the 16 days immediately preceding the election at which the measure is being voted upon, must be reported to the City Clerk within 24 hours of the time it is received or contributed. Any contribution of$100 or more from a single source which is made to or received by a committee primarily formed to support or oppose a ballot measure during the eight days preceding the election at which the measure is being voted upon, must be reported to the City Clerk within 24 hours. Late contribution reports must be filed by telegram, mailgram, guaranteed overnight delivery service, :£ase or personal delivery (not by regular mail). 8. No person shall deduct or withhold any amount or percentage from any contribution. Any compensation provided to any person for solicitation, collection or other service shall be treated as an election expenditure item D. Aggregation of Contributions. 1. For the purposes of this section, contributions received from a husband 5A- /I 7 and wife shall be treated as if received one-half from each unless otherwise designated by the contributor (Ord. 1067 Section I Ex. A (part), 1986; prior code Section 2804) 2 Contributions made by two or more entities must be combined if the same person, or a majority of the same person, directs or controls the contributions. 3. Contributions made by business entities in a parent-subsidiary relationship and business entities with the same controlling owner (more than 50%) must be combined unless the business entities act completely independently in their decisions to make contributions. A parent-subsidiary relationship exists when one business entity owns more than 50% of another business entity. tures�:v':vj%G:lfi::$:::i:✓::W:�:v iivi V:iOiri:x<.in<i�>ni':••. ..... �•.;.i:.'S.P••..,vyx...ynY..vv.....J»:i:}'xx:C}tinw w.v::...:.:..'::.:..:: ......n..J.... ..:... ..#.............n:::. .: :.v!:Y..::::.M.n:::.......:}}}:}::' .}:}i.}::.::i.AF..,:!.::':::::::y:;i::i:::.`::i::::}::••:::'n::.::':::::.ii:: .yi: y::.::::.:::e ..:�!..::}::!.:':.:.:.:::.::::.:n....; ii:.i::. .:..:.::_,...:.:.......:....i:_i...... .:...i i:.:...........::i;.. .: :.:...}.......:..... :.;.,.......:..::..: '.:..::..:.. A., ombrurr .. ,[x[utatrc�t[s.: :.Art+ person::�aN°snakes [rtdependent expenditures s[t pc tta r:o Pos zi :a,,.ca tlxda:64 shall soot accept ani convibut[on to ex.cm. the `> eprcriiucttun of 1Vlatenals Any person wa reproduces, broadcastis or distributes Mi-INN::...::n,.:..}::.:.,,:.:n.::::::.,.:::n.n...knv:::..:n_.:n.:n:.:::...::::::::.,.::::::::.:. .:. ....}. .. . ... .... ......... .:...:. ..::.... :..:n. . ..,.......:..::::.::. ::..:...,.:::.....::,..::ini:::;'i::,:;.;;�iiii;:';�:.i:.;:�i:.i:;:;;;:.;:.:.i:;<.is <:,ii:.isi:<.i:.i"...i��.ii�.:�.ii:<::'.:.. ,any feria't..w� A�sda�#edr;pr3nted, �reparnd orryprevis?tzsly broadcast by a candid�te(s� n.w .. :.v..:::.;:...,:.::::::::::::::::::.:n.:::..:,.::n::.::::::.:.:..n:.....::n:.:::::::: : :::::.:: :::::::::::::..:,.:..::::.::::.:..:....:........,...:.. RIM t itt,� .$.* otteci :by sucft.cfnd�date,:"h report such an expertdlture as a nan iane a cat?tn1?u5t P. such cand[dat� Oar CclrnM ttee, ::.v::..:......................�...vv:::n:v.::.....[.t...........:::.:.v.:i.:.ri:.wn.y.: .v..::.v..:::r:s:..:..:....w:.:�: v . . m :i% 4: ;e::.::fe»YryuntitwaWemam � "ee .�..�tutI. %i::%>:•�>•i f:•'a: F :.:.....:. :::.. ..................::... ......:.. ........... .. of amt neatndxda a s1 al zridic te:s gaily ren an natenal pUb y ed dxspfayed,distrxl uteri, '::y..i':,•.:i':.}::.::::.}'.':;;n:::}..,..ii.i..!.:}i.ii::;.; .m}}.;.<:..a;<.�::,.:.:::::}::::i:�:}:.}:^:.:.::. ::::.:,::'.::.:.......... ... ....... .......:.:...... arxaadc„3st, the ztax[te of tI[e; erst�rt and}tie £aci that tfxe rnateralatdx' Y that }.,.,a.: ..: . ....... :. ........ ... .:. ... .......,.}:'::.}::::.}}:.i:::::n:.i:.ii}•.:..i:•.:w,.,: :.i:::.>:.;.i:. nr}:.:e.:.Y«.}::.::,}}:.,.v.iv,.i::.i:.x.y'.ii:.i:::;.i.:.is. i:.n..,«.}}ii':.},::ii:<.: .. % pea;1Erery person shall cnrnply tincUl of the rectttlrments imposed on ndfdates and �[itttee 'l�y t ts'.` atf±erfi rnuludtn bath „enntrzfi?ut[ons to, and exgecittures, by such 8 2.40.060 Election Campaign Accounts. A. Candidate Intention Statement and the Campaign Bank Account. 1. Candidate Intention Statement. Any individual who intends to be a candidate for city elective office must file a statement of intention to run for office prior to soliciting or receiving any contribution or loan. Form 501 (Candidate Intention) is used to comply with this requirement, and is filed with the Fair Political Practices Commission. A copy shall be filed with the City Clerk. 2. Candidate Campaign Bank Account. In addition to filing the Candidate Intention Statement, an individual who plans to run for a city elective office must set up a campaign bank account at a financial institution located in San Luis Obispo. Within ten days of opening the account, the candidate must file Form 502 (Campaign Bank Account)with the Fair Political Practices Commission. A copy shall be filed with the City Clerk. 3 ;. Bait rneasur�cornnuttees must set up a campaign lzatik accotuit, ^' .?v,9: ne,.i:n:.:i::{ .....::.:.:w.:iv:...,..:i: .....:.. 'i.:+..ii:i v Y.:.;n.....'^:.:^. Ike a at a roan al tnstttution et wttTiin tete County o. v.. ...... B. Statement of Organization. For each campaign bank account into which contributions totaling $1,000 are received (including the candidate's personal funds) or within ten days of receiving contributions of $1,000 or more, a recipient committee Statement of Organization (Form 410) must be filed with the State. A copy shall be filed with the City Clerk. If a recipient committee qualifies during the 16 days prior to an election, it must file,by telegram, fae or personal delivery within 24 hours of qualifying as a committee, the information required to be reported in the Statement of Organization. The form shall be filed with the City Clerk. C. Deposit of contributions. All campaign contributions accepted by a campaign 9 treasurer shall be deposited into the election campaign account by the campaign treasurer or authorized agent. D. Expenditures. Campaign expenditures shall be made only by checks drawn against the election campaign account by the campaign treasurer or authorized agent, except that a candidate or committee may establish one petty cash account. L. No more than $100 may be in the petty cash fund at any one time and no expenditures totaling $25 or more may be made from a petty cash account. The petty cash account may be used only for expenses associated with the candidate's election to the specific office for which the petty cash fund was established. 2. Petty cash funds in the election campaign account shall not be considered for any purpose to be personal funds of a candidate, campaign treasurer or any other person. D-. 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. &M Disbursement of Unexpended Campaign Funds. If, following the election, the final campaign statement for any committee discloses an unexpended campaign surplus, the campaign treasurer shall disburse the whole of the surplus to the city and/or a nonprofit charitable (qualified for federal income tax exemption) organization of the campaign treasurer's choice. This shall be done no later than the State's third campaign disclosure statement deadline. Gs Closing of Account. Following the election and no later than the State's third campaign disclosure statement deadline, the campaign treasurer shall close the election campaign account and fili a second City campaign statement (Form 101 or 102) with the City Clerk. State Form 415 is required if the total campaign account totaled $1,000 or more and is filed with the Secretary of State (a copy shall be filed with the City Clerk) verifying 10 the closure and listing of donees of all disbursements authorized by subsection B .P.. of this section, and the dollar amounts given to each donee. lravi *r `however, s#tod ltttgattozz Anse a result of the.:"conduct v the ....... . ...... . .. Wiwi., pargtit er}od o after the ct7nclustotx of the carnpaWN tie .ArM;;i+Nig.':v'i.:n>:"'ii'»":^:::.>::•.!.YYAii: i:w::....3..::i";:,:,+:............ ...........:...........,.....:..<.. ::.: n ;i:q:5;.'::i:;j:i:..ii;:ii:r. :i;i: 'i:.::;;;.;.' : .:::.:::.,•;:.:: :::.:::s:'::; ;;.::.::..:..:. ccFrf aY< xlcePt open.moi such]rogation.t firmly ccXducX�d WtthrnS days of sorb v:!iv:viiiiJii'.iii"i'i:'i:i.ii:•i::.iii'!:^:.:'.: %•iY'!:.: "I'::<'i::'.. :i^:^^!.vM.,{._+f.{Yvii:::::4:u Y..:C .:ie...x y}:..:.(i<:j•i::. .:. uitun,a mal campatgrf statement shalt bel�d wttite Cttr clerk; WE Retention of Records. The campaign treasurer shall retain all campaign statements and all other records required by this Chapter for a period of four years after the election (Ord. 1067 Section I Ex. A (part), 2.40.070F, 1986; prior code Section 2805) 2.40.070 Campaign Statements. A. Required Filing Schedule. Every campaign treasurer, upon receiving or expending $25 W or more shall file with the City Clerk campaign disclosure statements according to the following schedule: 1. State campaign disclosure statements shall be filed as required by the provisions of Title 9 of the California Government Code. 2. A city campaign statement (Form 101 or 102) shall be filed no later than 12:00 noon, Tuesday, one week before the election. The closing date of this statement shall be five p.m.. Monday, eight days before the election. B. Contents. 1. Each state campaign statement filed shall contain the information required under the provisions of Title 9 of the California Government Code. 2. The city campaign statement (Form 101 or 102) shall consist of: a. The name, address and amount of the contribution for each person who contributes &23 $3;q or more. b. The total amount received from all persons who each contribute 11 less than $9 $ . C. The name and address of each person expending M $30 or more if qualifying as an Independent Expenditure Committee. d. The total expenditures made by each committee. 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 Title 9 of the California Government Code. D. Filing fees, if any, shall be established by Council resolution. E. Publication. On the Saturday preceding the election, the City Clerk shall publish in a newspaper of general circulation within the city the following information for each committee: 1. Total receipts; 2. Total expenditures; 3. Contributions; the name of each person contributing S2=5 $30 or more with the amount contributed; 4. The name of each person(s) expending M$3D' or more if filing as an independent expenditure committee; statement r-eq hemi nts pur-stiant te Seetieft 2.40.070, a stateffiefit t L ..:........:.:: ...::.... :::>;:.;>;::::.su:>;.:::::::; :.... .A. k. . t� < ecessar ,tiaal.a candtdaze arty€/nr comnruttee has 1'at'ted to:c, ?mtrerquue ddltneth the earnpgn statement requiremetits,pt�rsu11 ant w . ,.: 2.40.080 City-El.�.� s `( tsljItesF> 't A. Duties. In addition to any other duties required of the City Clerk under this 5A -1 G 12 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; Place a timely advertisement(s) in a newspaper of general circulation advising the public that a person(s) supporting or opposing a candidate(s) or a measure'W through newspaper or other advertisements may be subject to city reporting requirements. 6.5. Compile and maintain a current list of all filed statements pertaining to each reporting committee; a brief deser-iptien of his/her- stand en leeal issues at a date fe be established by >° ` aul a atx ap ar�prtate s�xxn r:aac res [be a date £or su nxssto , ..,..N....:.::::.. w.,...:...: . �ultxc :a laws at `i dtdate to die a 4(Hl>word ba et staterneztt of ual eattt ns �:,...h..:n.,:. w.......:....... „ ... .,.x :.:.: ,...M Such statement shall be on a form provided by the City Clerk in accordance with any other provision as set forth by Elections Code Section 10012 et seq. 13 B. Obtain Additional Help or Services. The City Clerk is authorized and directed to hire part-time help, contract for services, and purchase supplies as the City Clerk deems necessary to carry out the additional duties imposed on the City Clerk's Office by this Chapter. Within ninety days after each election, the City Clerk shall provide the council with a detailed report on the total direct and indirect labor, materials and oth& costs incurred by the City Clerk's Office in performing such additional duties. (Ord. 1067 Section 1 Ex. A (part), 1986; prior code Section 2807) 2.40.090 Criminal Misdemeanor Actions. A. 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 Actions. A. Any person who intentionally or negligently violates any provision of this Chapter shall 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. B. If any person files an original city campaign disclosure 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 $100 per day after the deadline until the statement or report is filed. Liability may not be enforced if, on an impartial basis, the filing officer determines that the late filing was not willful and that enforcement of the liability will not further the purposes of this Act Liability shall not be waived if the first city pre-election campaign statement is not filed within five days, and the second and final city campaign statement is not filed within 10 days of the deadline after the filing officer has ^ Q 14 sent specific written notice of the filing requirement. C. If two or more persons are responsible for any violation, they shall be jointly and severally liable. D. Any person, who 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. The request shall contain a statement of the grounds for believing a cause of action exists. The City Attorney shall respond within ten (10) days after receipt of the request indicating whether he or she intends to file a civil action. If the City Attorney indicates in the affirmative and files a suit within thirty (30) days thereafter, no other action may be brought unless the action by the City Attorney 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 judgement 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 (4) years after the date the violation occurred. 2.40.110 Injunctive Relief. Any person residing in the city, including the City Attorney, 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, provided however, no costs of litigation or attorneys' fees shall be awarded against the city. 15 2.40.130 Disqualification. In addition to any other penalties prescribed by law, if an official receives a contribution in violation of this Chapter 2.40, the official shall not be permitted to make, participate in making or in any way attempt to use his or her official position to influence a governmental decision in which the contributor has a financial interest. The provisions of Government Code Sections 87100 et seq. and the regulations of the Fair Political Practices Commission shall apply to interpretations of this Section (Ord. 1067 Section 1 Ex. A (part), 1986; prior code Section 2809) 2.40.140 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 Title 9 of the California Government Code shall govern the interpretations of terms used in this Chapter. This Chapter shall be construed liberally in order to effectuate its purpose. 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. (Ord. 1067 Section 1 Ex. A (part), 1986; prior code Section 2810) 2.40.150 Council Study Committee. Appointment. At least nine months prior to the expiration of this Chapter, the council shall appoint a committee of at least five citizens to study the efficacy of this Chapter. The committee shall complete its deliberations and report its findings to the City Council on or before January 31, 4995;1998. (Ord. 1067 Section 1 Ex. A (part), 1986; prior code Section 2811) 16 2.40.160 Expiration of'Provisions. Unless readopted, this Chapter .shall expire on June A. 4995 1998. (Ord. 1.067 Section 1 Ex. A (part), 1986, prior code Section 2812) MEETI; AGENDA DATE Z-L L� ITEM # RICHARD A. SCHMIDT, Architect January 29, 1994 (re: Item 5, Campaign Election Regulations) To the City Council: As a committee member who felt strongly about campaign litigation disclosures, I'd like to provide some background for the Council's consideration: 1. Litigation contributions/expenditures are covered by state election regulations. According to the FPPC's Buchanan ruling, "When expenditures are made to support litigation aimed at gaining a place on the ballot for a candidate or measure, aimed at keeping a candidate or measure off the ballot, or challenging the results of an election, the expenditures are made for the purpose of influencing the outcome of the election in favor of or against a particular candidate or measure and should be reported." (FPPC Opinion 78-013) Thus, in adding this subject to its regulations, the city is following the FPPC's lead. 2. Using litigation to influence the outcome of elections is a growing practice locally. I can think of four preelection litigations just for local ballot measures in SLO county since 1990. There may be others. We have also seen post-election litigation. 3. Why include such a provision in city regulations? A. As a courtesy and reminder to participants in city electioneering. Making participants' obligations'under the law as clear as possible serves both public and private electoral interests. B. To further the city regulations' purpose of assuring full public disclosure of contributions and expenditures. (Litigation expenses can dwarf other campaigning costs.) C. To provide a mechanism for local enforcement. The FPPC's enforcement efforts have been so hamstrung by two successive hostile governors that FPPC lacks resources sufficient to enforce the law in jurisdictions as small as our city, and thus generally refuses to do so. For the city to be able to enforce when the FPPC cannot or will not, litigation disclosures must be included in city regulations. This is thus a sensible "check and balance" and "local control" measure. I hope this information helps flesh out the rationale for the recommended actions by the Council. If you have any questions about this matter, please feel free to contact me. Sincerely, 4 1__;1 OUNCIL ❑ CDD DIR /J � AO 11FIN DIR (�(L/ � CAO El FIRE CHIEF ATTORNEY ❑ PAY DIF1 ' Richard Schmidt IYCLERWORIG ❑ POLICE CHF. ❑ MGMT TEAM ❑ REC DIR ❑ C READ FILE . IJ UTIL DIR 1 / 112 Broad Street, San Luis UIDISPO, 5 (805) 544-4247