HomeMy WebLinkAbout08-18-2015 Public Comment - Ostrander 2COUNCILMEETING: r$ ZG%J
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ORDINANCE NO. __ (2015Series)
AN ORDINANCE OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
AMENDING THE SAN LUIS OBISPO MUNICIPAL CODE TO CREATE A SYSTEM
OF `DEMOCRACY VOUCHER" FUNDING FOR MUNICIPAL ELECTIONS AND TO
MAKE OTHER REVISIONS TO THE CITY'S ELECTION CAMPAIGN
REGULATIONS
WHEREAS, the Council of the City of San Luis Obispo conducted a public hearing in the
Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on
2015, for the purpose of considering changes proposed to update the Municipal Code.
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. That section 2.40.020 (Purpose and intent) of the San Luis Obispo
Municipal Code is hereby amended to read as follows:
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 enable all San Luis Obispo voters to artici ate in the financin of municipal
election campai=s through contribution of "democracy vouchers" to eligible candidates
7. To provide candidates with the opportunity to substantially fund their campaigns usin
"democracy vouchers" contributed by any and all Sang Luis Obispo voters.
6 8. To ensure that funds contributed to a campaign committee are used solely for
campaign purposes.
q 9. 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.
SECTION 2. That section 2.40.030 (Definitions) of the San Luis Obispo Municipal Code
is hereby amended to read as follows:
2.40.030 Definitions.
The following terms have the meanings identified below. Other 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.
A. "Democracy Vouch_ er Debit Card" means a stored -value a went card issued by the Cijy of
San Luis Obispo ....
B. "Election cycle" means the period beginning on the day after the date of the most recent
;general election for the specific office or seat that a candidate is seeking and ending on the date
of the next general election for that office or seat.
C. "Fund" means the Democracy Fund created by XXXXX.
D. "General election" means an election held on the first Tuesda following the first Monday of
November pursuant to City Charter Article III Section 302.
E. "Participating candidate" means_ a candidate who qualifies for Democracy Voucher campaign
funding.
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F. " uali ing_ signature" means a verifiable signature of a registered voter resident of the City. of
San Luis Obispo.
G. "Special election" means an election other than a general municipal election held pursuant to
QV Charter Article III Section303.
SECTION 3. That section 2.40.040 (Contribution Limitations) of the San Luis Obispo
Municipal Code is hereby amended to read as follows:
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.
B. Acceptance or Solicitation by Candidates or Controlled Committees. No candidate,, or
controlled committee
and/or any eentfelled eemmioee eanneeted with that , when eembined,
. or agent of a candidate or controlled committee shall solicit or
direct money for or on behalf of 4py political action committee political party, or an
organization,_ other than the participating candidate's own controlled committee, in connection
with an election during the same election cycle. For the purposes of this section, appearing as a
speaker or featured guest at a fundraising event for a committee or entity shall constitute
soliciting money for such committee or entity.
C. Contributions by Candidates. The provisions of subsections A and B of this section shall not
apply to contributions from a candidate or- fi;a , his e» hef :..mediate family to any controlled
committee connected with that candidate, nor to the expenditure, by the candidate, of his or her
personal funds. Fer- pur-poser, of this " candidate's
,
offieel nl , .
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.
E. Coordinated Expenditures. Agy expenditures made by any person in cooperation,
consultation, or concert, with, or at the request or suggestion of, a candidate, his authorized
political committees or their agents, shall be considered to be a contribution to such candidate.
F. Dissemination distribution, or republication of candidate campaign materials.
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1. General rule. The financing of the dissemination, distribution, or republication, in
whole or in part, of any broadcast or any written, graphic, or other form of campaign
materials prepared by the candidate, the candidate's authorized committee, or an a ent of
either of the foMoing shall be considered a contribution for the puMoses of contribution
limitations and reporting responsibilities of the person Makin the he expenditure. The
candidate who prepared the carnpain material does not receive or accept an in- -kind
contribution, and is not required to report an expenditure, unless the dissemination,
distribution, or republication ofcampai campaign materials was done in concert or cooperation
with or at the request or sWgestion of such candidate.
2. Exceptions. The following uses of cjampaigg materials do not constitute a contribution
to the candidate who originally_ prepared the materials:
a. The campaign material is disseminated, distributed, or republished by the
candidate or the candidate's authorized committee who prepared that material;
b. The cam ai n material is incorporated into a communication that advocates the
defeat of the candidate or party that prepared the material, or
c. The campaign material is disseminated, distributed, or republished in a news
story, commentary, or editorial distributed throe h the facilities of an
broadcasting station, newspaper, magazine, or other periodical publication, unless
such facilities are owned or controlled by @y_political party, political committee,
or candidate.
SECTION 4. That section 2.40.040 (Contribution Limitations) of the San Luis Obispo
Municipal Code is hereby amended to read as follows:
2.40.060 Campaign statements and other reportint requirements.
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. Genten Each state campaign statement filed shall contain the information required under the
provisions of the Government Code and any contributions greater than fifty dollars.
B. Independent Ex enditures and Communications IdentifyiLig Identifying State Candidates.
1. Any person who makes a payment or a promise of payment totaling five hundred
dollars 500 or more at gny time for an "rode ndent expenditure" as defined by Cal.
Political Reform Act Section 82031 that clearly identifies a candidate for elective City
office, or for a communication that clearly identifies a candidate for elective City office,
but does not expressly advocate the election or defeat of the candidate and that is
disseminated, broadcast or otherwise published within 45 days of an election, shall file
online or electronically with the Qijy Clerk areport disclosing the naive of the person,
address occupation, and em to er and amount of the payment. The report shall be Filed
within 48 hours of making the payment or the promise to make the payment.
2. If an person has received a payment or a promise of a payment from other persons
totalin five hundred dollars $500 or more for the ose of making a communication
described in subdivision (1 ),the erson receiving the payments shall disclose on the
report the name, address, occupation and employer, and date and amount received from
the person(s). This requirement shall not apply to a person who in the business of
rovidn goods or services and who receives or is promised the payment for the purpW
of providing those goods or services.
I Any__payment received by a person who makes a communication described in
subdivision (1) is subject to the limits specified in Section 2.40.040 if the communication
is made at the behest of the clearly identified candidate.
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.
D. Publication. The city clerk shall promptly, following receipt for filing, post a copy 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.
SECTION 5. That section 2.40.080 (Responsibilities of city clerk) of the San Luis Obispo
Municipal Code is hereby amended to read as follows:
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 and other procedures provided for or required to be filed by this
chapter.
2. Determine whether required applications, forms, 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 an application, statement or other
paperwork in the form and at the time required by this chapter.
4. Report, in writing, apparent violations of this chapter to the city attorney.
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5. Promptly, following receipt for filing, post a copy of each campaign statement on the
city of Sari 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.
7. Implement and administer the Democracy Voucher program established by this
chapter, including but not limited to:
a. Making regulations, defining terms establishipg other rules or promulga tin
any other administrative regulations or guidelines not inconsistent with the
provisions of this chapter;
b. Prior to each election cycle, informing the he public about Democracy Vouchers
and the Program;
c. Publishing appropriate guidebooks for candidates and Democracy Voucher
recipients, and all forms, instructions, brochures and documents necessary and
proper for this Pro am;
d. Promptly after the effective date of this measure projecting Democracy
Voucher Program revenue expenditures, and Democrat Voucher Pro Tram
Funds ("Program Funds" balances from 2015 through at least 2021, and revising
and updating such projections regularly;
e. Managing Democracy Voucher Program Funds as a fiduciary, ensuring proper
accumulation and distribution of funds, during nonele9ction and election years, to
achieve Program purposes and goals;
f By JAguaU l st of each municipal election year, publishing, an "Available
Pro am Funds Limit" for that year for Demq� ra Voucher redemptions, using
best efforts to reasonably project and ensure that adequate Program Funds are
available for that election year consistent with this cha ter its goals and puWses
and all reasonably foreseeable circumstances and contingencies-,
g During M municipal election year as soon as receiving or reasonably
belevin it shall receive DemocLzLcy Vouchers for redemption in excess of the
Available Program Funds Limit for that year, publicly announcing that
Democracy Voucher Program Funds are no longer available and setting a prompt
deadline date for Demoerao Voucher delivery, following which the city clerk
me
shall consider Democracy Vouchers received and available Program Funds and
shall allocate remaining available Program Funds proportionately per unredeemed
verified Democracy Vouchers on hand pro rata among all participatin
candidates for all offices without discrimination; an d
h. In the event a special election is called, setting aside Democracy Voucher
Program Funds for such election in an amount it deems appropriate, and altering
and implementing, standards, procedures, limits and deadlines as similar as may
be racticable to those provided in this chapter for such-special election.
SECTION 6. That section 2.40.082 (Democracy Voucher Fund) of the San Luis Obispo
Municipal Code is created to read as follows:
2.40.082 Democracy Voucher Fund
A. Establishment of Democracy Voucher Fund. A special, dedicated non-Imsing Democrac
Voucher Fund shall be established by the Mayor and Council for the purpose of:
1. Providing funds to the election campaigns of certified participating candidates in
exchange for redeemed Democracy Vouchers, and
2. Pa in = for the administrative and enforcement costs of the 61y clerk other cAy staff
and the San Luis Obispo Fair Cam ai n Practices and Ethics Commission related to the
administration of the Democracy Voucher Program.
B. A ro nations to the Democrac Voucher Fund.
1. The Mayor and City Council shall annually approprate_�$2t) per City of San Luis
Obispo registered voter per year from the Cfty General Fund to the Democracy Voucher
Fund. The Council's duty to appropriate funds for the Democracy Voucher Program shall
cease upon the termination of the Democracy Voucher Program..
2. Other sources of revenue to be de osited in the Democracy Voucher Fund small
include:
a. Unspent Democracy Voucher funds distributed to M participating candidate
who does not remain a candidate until the election for which the, were
distributed, or such funds that remain unspent by a participating' candidate
following the date of the election for which they were distributed;
b. Fines levied by the Commission against candidates for violation of election
laws;
c. Voluntary donations made directly to the Democracy Voucher Fund-,
d. Other funds appropriated by the Mayor and City Council;
e. Any interest generated by the Fund; and
f. Any other sources of revenue determined as necessary by the Mayor and City
Council.
3. The amount in the Democracy Voucher Fund shall not exceed $500,000. In order to
comply with this limitation, revenue that would otherwise be deposited in the Fund
pursuant to subsections (l j_and (2) shall instead be deposited in the City General Fund.
4. The City Council mg, by adoption of an ordinance by not less than two- thirds vote of
its membership, make an official declaration of fiscal emergency and suspend or reduce
the amount of the annual appropriation specified in subsection (1). Any such ordinance
suspending or reducing the annual appropriation shall be effective for no more than one
year.
C. Cost of Living Adjustments. The [city clerk/Commission-1 shall adjust the dollar amounts
sWcified in subsection (13) of this Section upward or downward, for changes in the cost of living,
by the percent change in the Consumer Price Index.
SECTION T. That section 2.40.084 (Democracy Voucher Program) of the San Luis
Obispo Municipal Code is created to read as follows:
2.40.0$4 Democracy Voucher Program
A. Issuance of Democracy Voucher Debit Cards. On the first business day in jinsert month] _of
every municipal election year, the city clerk shall mail to each person who was by the previous
February_ lst, duly registered to vote in the City of San Luis Obispo, at his or her address in the
voter registration records, „a $20 Democracy Voucher Debit Card, except that city clerk may
deliver a $20 Democracy Voucher in another manners if implementation of a Democracy
Voucher Debit Card system is not feasible. Thereafter city clerk shall regularly issue a $20
Democracy Voucher Debit Card tc anpy person becoming a duly registered City of San Luis
Obispo voter after the previous February 1 st, up until October 1 st of the election year. Any
g May y d to an address other
registered voter ma request that a Democracy Voucher Debit Card be made,
than that indicated in the voter registration records, or be delivered at the office of the city clerk,
as soon as the qi y clerk shall have developed a secure s stem for such distributions of
DemocrM Voucher Debit Cards. No individual who is not a resident and registered voter of the
City of San Luis Obispo, no corporation or other non -human entity, and no person ineligible to
make political contributions under federal or state law, m4y receive a Democracy Voucher Debit
Card.
B. Form of Democracy Voucher Debit Cards. Each 20 Democracy Voucher Debit Card shall
insert deadgn and security specifications for such debit cards —e. g., whether the card contains
the re istered voter's name a unique voucher identification number, the election year, etc. and
M information the city clerk deems helpful and necessary► for administering a secure
Democracy Voucher Debit Card system.
C. Assignment of Democracy Voucher Funds. Democracy Voucher funds are only transferable
or assignable as stated herein. Any, person properly obtaining and holding a Democracy Voucher
Debit Card may assign all or part of the card's value by [insert procedural language after further
research]. The city clerk shall establish a secure online system for assignment of Democracy
Voucher funds no later than _[prior to the 2016 election cycle], unless the city clerk determines
this target date is not practicable; and in any event no later than the j20181 election cycle.
D. Limitations on Assignment of Democracy Voucher Funds,
1. A person may only assign Democracv Voucher funds to a candidate who has chosen to
participate in the City of San Luis Obispo Democracy Voucher Program and who has
filed a signed statement of participation and pledge with city clerk as described below.
No Democrapy Voucher funds may be assigged after the last business da y in November
following the election, or to any candidate filing for participation who then fails to
qualify or becomes unqualif ed for the position sought or for the Program. A candidate or
registered candidate representative may seek assignment in person or through
rcpresentativcs or by assisting _a_ voter to access the s+ccure online system implemented by
the city clerk. A valid assignment is irrevocable. A person may assign any amount of his
or her _Democracy Voucher funds to a candidate. Assignment or transfer for cash or any
consideration is prohibited. Offering to purchase, buy or sell Democracy Voucher funds
is prohibited. No person may give or gift a Democracy Voucher Debit Card or the value
of such card to another person, except by assigning it to a candidate as Provided herein.
Democracy Voucher Debit Cards have no cash value and are not assets, income or
prgpM of the Milder. Democrapy Voucher funds-mgy not be assigned by rox power
of attorney or by an agent.
2. A Democracy Voucher Debit Card expires if the holder is no longer a registered voter
and resident in the City of San Luis Obispo, or no longer or not eligible to make olp itical
contributions under state or federal law, if such circumstances take place prior to the
assignment of Democracy Voucher funds to a qualified candidate. The holder of a
Democrat y Voucher Debit Card assumes the risk that he or she mgy change his or her
mind after assignment of Democracy Voucher funds, or that the Democracy Voucher
funds mgy not have use or be redeemed due to an_y contingency, including but not limited
to unavailabili y of Program funds-, a candidate's death dis ualif cation dropping out
failure to redeem or use the DemocLaa Voucher funds-, a candidate's not gualif ling or
violating the terms of qualification, or otherwise.
E. Candidate Qualification for DemocLeLcy Voucher Pro ram
1.Only a candidate who has filed with the city clerk for participation in the Democracy
Voucher Program ma receive assignment of Democracy Voucher funds. Onlya
candidate certified as gualified by the cit y clerk-mgy redeem a Democracy Voucher funds
assignment. Only a person eligible for and seeking the office of Mayor or City Council
shall be eligible to file for Pro am pqWcipation.
2. requirements for Program. To seek qualification, the candidate shall file with the city
clerk on or after July 1 st the year before an election year and within two weeks after
filing a declaration of candidacy, a sworn statement attesting to his or her intent to
participate, asserting that the candidate shall timely file or has filed a declaration of
candidac for the office indicated and that the candidate shall comply with Program
requirements_ and applicable campaign laws. Such Program rectuirements are that the
candidate.
a. shall take part in at least three public debates for each election (and the city
clerk quay waive or reduce the number of debates if a qualifying candidate makes
all reasonable efforts to participate in debates and similar public events);
b. _shall not expend, contribute or lend to the candidate's own controlled
committee personal funds in excess of `300; and
c. shall not solicit or acre t an contributions except for the personal funds
allowed by the preceding subsection and the value of Democracy Voucher funds
assigned to such candidate (subject to exceptions provided herein).
3. Qualifying Signatures. To qualify for the Democrac y Voucher Program, candidates
shall demonstrate to the city clerk that they have received at least 250 "qualifying
signatures." The city clerk shall maintain a list of qualified candidates and make it readily
accessible to the public, including-by publishjAg it on city clerk's website.
4. Loss of Qualification. A candidate loses qualification for the Program by ublicl
announcing withdrawal, abandoning the race, or if the city clerk finds sufficient. material
violations of election laws or Program requirements such as violation of spencligg spending or
contribution limits or fraudulent or attem ted fraudulent assignment of Democrac
Vouchers.
F. Redemption of Democracy Vouchers.
1. The city clerk shall redeem Democracy Vouchers only after verifying the assignment
by ensuring the Democracy Voucher Debit Gard was issued to an eligible person, and
verifying the signature written by person as part of the assigmnent process. To
verify signatures the city clerk may employ the division of [county registrar ?], which
verifies signatures for initiative petitions and mail -in ballots.
2. The city clerk shall redeem Democracy Vouchers on published regular redemption
dates that shall be no less fre cent than twice a month and ma redeem Vouchers on
other dates notified in advance if the city clerk deems it practicable. The city clerk shall
not redeem any Democracy Voucher received by the city clerk after the first business day
in the month of December after the general election.
[If,
3. A participating, candidate shall be eligible to receive from the city no more than
$ 10,000 in Democracy oucher funds prior to September 1st of the municipal election
year.
4. A participating candidate shall be eligible to receive from the city no more than
$50,000 in Democracy Voucher funds during a single municipal election year.
5. In the event that insufficient funds exist in the Democracy Voucher Fund to satisfy
candidate Democracy Voucher redemption requests up to the limit established by Section
2.40.084(F)(4), participating candidates shall be permitted to solicit and accept
contributions pursuant to the limit established by Section 2.40.040(x).
G. Limits on Use of Voucher Proceeds. Candidates shall use Democracy Voucher proceeds only
for carnpaign costs or debts for the relevant office and election cycle, and may not use such
proceeds after a reasonable period to be set by the city clerk following the election to pay
campaign debts. Candidates shall not use Democracy Voucher proceeds for any cash payments
or in violation of any law; nor to pay the candidate (except to re U or reimburse a loan to his or
her political committee or campaign in an amount not greater than that provided in
2.40.084(E)(2)(c); nor to pay any entily in which the candidate or an immediate family member
holds a ten percent or greater ownership interest; nor to pap y any amount over fair market value
for any services, goods, facilities or things of value; nor to pay and! penalty or fine; nor to pay
any inaugural costs or office funds cost.
H. Return of Democracy Voucher Proceeds. A candidate who has redeemed a Democracy
Voucher, then withdraws, dies, becomes ineligible, loses qualification, or is eliminated in or wins
a general election, shall within a reasonable period, as defined by the city clerk, pay all debts and
obligations, account to cfty clerk and restore to cily clerk and the Program "Unspent Democrat
Voucher Proceeds." The cijy clerk shall dcfine "Unspent Democracy Voucher Proceeds" by rule.
SECTION 8. That section 2.40.086 (City Ethics Commission) of the San Luis Obispo
Municipal Code is created to read as follows:
2.40.086 City Ethics Commission
A. Establishment of City Ethics Commission. There shall be a City Ethics Commission that shall
have the pgwers, duties and responsibilities set forth in this Section and elsewhere in the
Municipal Code. The Commission shall have five members each of whom shall be a art -time
commissioner who serves a staggered five -year term beginning on n July 1 and ending on ,tune 30.
No member who has served a complete five -year term shall be eligible for reappointment.
1. Appointment. Conunissioners shall be chosen at random from a pool of self - nominated
individuals. Each member of the Commission shall be a registered voter of the City. No
member of the Commission shall seek election to any City office unless the election for
that office is to be held_ at least two years following the expiration of the term of office of
the commissioner. During his or her tenure no member of the Commission shall hold an
other public office or participate in or contribute to a City election campaign..
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2. Removal. Members of the Commission may be removed by a two- thirds vote of the
Council for substantial neglect of duty, gross misconduct in office, inability to discharge
the powers and duties of office_ or violation of this Section, after written notice of the
grounds_on which removal is sought and an opportunity for a reply.
3. Vacancies. Appointments to fill vacancies on the Commission shall be made within 30
dqys and shall be for the unexpired term of the member whom the appointee succeeds. A
vacancy or vacancies shall not impair the right of the remaining members to exercise the
powers of the Commission.
4, Quorum. Three members shall constitute a quorum, and the Concurring vote of at least
three members shall be required to take any action.
5. Compensation; Expenses. Members of the commission shall be compensated .... The
_members of the Commission shall be reimbursed for expenses incurred in the
performance of their official duties.
B. Executive Director and Delegation of Authority.
1. The Commission shall appoint and has the authority to discharge an Executive
Director, who shall act in accordance with Commission policies and regulations and with
applicable law. The Executive Director shall serve at the will of the Commission, shall
not be subiect to civil service provisions, and shall have no pLopegy interest in his or her
em to ment. The,-sWpiy of the Executive Director shall be set by the Council and shall be
based on a recommendation submitted by the city manager after a review and anal sy is of
the responsibilities and authority vested in the position. The Executive Director shall not
serve in that cypacily for more than ten ,years.
2. The Commission may delegate authority to the Executive Director to act on behalf of
the Commission between meetings of the Commission except that rules regulations and
adjudiegM decisions can only be acted upon by the Commission.
C. Duties and Responsibilities of the Ethics Commission. The Commission shall have
responsibility for the impartial and effective administration and implementation of the provisions
of Chapter 2.44 of the Municipal Code. The City Ethics Commission shall have the following
duties and responsibilities.
1. to audit disclosure statements and other relevant documents and investigate alleged
violations of Chapter 2.40 of the Municipal Code and any other City ordinances relating
to limitations on campaign contributions and expenditures, lobbying ^governmental ethics
and conflicts of interest and to report the findings to the city attorney and other
appropriate enforcement authorities.
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2. to make recommendations to the Mayor and the Council concerning campaign finance
reform, lobbying, governmental ethics and conflicts of interest and to report to the
Council every three years concerning the effectiveness of these laws;
3. to annually adjust [specify limits and thresholds] required by City law to reflect any
increases or decreases in the Consumer Price Index. Adjustments shall be rounded off to
the nearest ... ;
4. prescribe forms for reports, statements notices and other documents Muired by the
Charter, ordinances or other laws relating to campaign financing, conflicts of interest,
lobbying or governmental ethics; --
5. prepare and publish manuals and instructions setting forth methods of bookkeeping,
reservation of records to facilitate compliance with and enforcement of the above laws
and explaining applicable duties of persons and committees.
b, develop an educational program consisting of the following components:
a. seminars, when deemed appropriate, to familiarize newly elected and gMointed
officers and employees, candidates for elective office and their campai�ri
treasurers, and lobbyists with City, state and federal ethics laws and the
importance of ethics to the ubRe"s confidence in municipal govemment.
b. annual seminars for top -level officials, including elected officers and
commissioners, to reinforce the importance of compliance with and to inform
them of anny eban es in the law relatin g to conflicts of interest and govemmental
ethics.
c. amanual that summarizes, in simple, non- technical language, campaign finance
and ethics laws and reporting requirements applicable to City officers and
empluy_ees, instructions for completing required forms, questions and answers
regarding common problems and situations and inform_ ation regarding sources of
assistance in resolving questions. The manual shall be updated when necessaEy to
reflect char es in applicable QV, state and federal laws -goveming the ethical
conduct of City emplo ees.
7. to have full charge and control of its office, to be responsible for its proper
administration to submit annually a proposed bud et and to expend the funds of the
office, all as otherwise prescribed by law; and
8. to receive gignts gi& and a ro nations subject to the a royal of the Council;
D. Rules and Regulations.
1. The Commission may adopt, amend and rescind rules and regulations, subject to
Council approval without modification,, to , out the purposes and provisions of the
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Charter and ordinances of the City relating to campaign finance, conflicts of interest,
lobbying, and governmental ethics and to govern procedures of the commission.
2. Within 60 days after a rule or re ulation is adopted by the Commission the Council
shall hold a public hearing concerning the matter and act to approve or disc p oye the
rule or regulation in the form approved by the Commission by ordinance. Violation of the
rule or regulation shall be subject to those penalties and remedies as mgy be provided.
E. Requests for and Issuances of Opinions,, Advice.
F. Investigations and Enforcement Proceedings. The Commission shall, in collaboration with the
city attorne conduct investigations of alleged violations of state lawL the Charter and Cily
ordinances relating to campaign financing, lobbying and conflicts of interest and governmental
ethics. Any person who violates any provision of the Charter or of a City ordinance relating to
campaign financing, lobbying, conflicts of interest or governmental ethics, or who causes any
other person to violate an provision, or who aids and abets an other person in a violation, shall
be liable under the provisions of this Article.
1. Investigations.
a. If the Commission, upon the sworn complaint of any_person or on its own
initiative first determines that there is sufficient cause to conduct an
invesfilmOup, rt shall investigate, in collaboration with the cily attome alleged
violations of state law, the Charter or City ordinances relating to campaign
financing, lobbying, conflicts of interest and governmental ethics. The
Commission shall not be required to investigate a complaint filed with it unless
the complaint identifies the specific alleged violation which forms the basis for
the Dm plaint and contains sufficient facts to warrant an investi ation.
b. The investigation shall be conducted in a_confidential manner. Records of any
investigation shall be considered confidential information pursuant to Section
18362 of Title 2 of the California Code of Regulations, as amended or an
successor provision. The unauthorized release of confidential information shall be
sufficient grounds for the termination of the employee or removal of the _ ^
commissioner responsible for the release. The termination of clerical em to ees
only shall be subject t to applicable civil service provisions.
c. The Commission, city attorney and any special prosecutor may subpoena
witnesses, compel their attendance and testimony, administer oaths and
affirmatiom_take_ evidence and require by subpoena the production of any books,
pagers, records or other items material to the performance of the commission's
duties or exercise of its powers.
2. Findin s of Probable Cause, Administrative Enforcement. If the Executive Director of
the Commission_ determines that there is probable cause to believe that a provision of the
Charter or Cily ordinances relating, to catnpgign fmancing, lobb in conflicts of interest
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or govenunental ethics has been violated the Executive Director shall cause an
administrative enforcement accusation to be issued and served. No finding of probable
cause shall be made by the Commission unless at least 21 da s nor to the
Commission's consideration of the alleged violation, the person alleged to have
committed the violation is notified of the alleged violation by service of process or
registered mail with return receipt requested, is provided with a summary of the evidence,
and is informed of his or her right to be present in person and re resented b counsel at
any proceedin g held for the p=ose of considering whether probable cause exists for
believing the person committed the violation. Notice to the alleged violator shall be
deemed made on the date of service the date the registered mail receipt is signed, or, if
the registered mail receipt is not signed, the date returned by the post office. A
proceeding held for the purpose of considerin robable cause shall be rivate unless the
alleged violator files with the commission a written request that the proceeding republic.
3. Administrative Hearings, Orders and Penalties. After an accusation is issued and
served, the Commission shall cause a public evidentiary° hearing to be held to determine
if a violation has occurred. When the Commission determines on the basis of substantial
evidence presented at the hearing that a violation has occurred, it shall issue an order
which may require the violator to:
a. cease and desist the violation;
b. file' reports, statements or other documents or information required by law,
and/or
c. pay a monLtM penafty to the General Fund of the Cily of up to five thousand
dollars ($5,000] for each violation or three times the amount that the person failed
to report properly or unlawfully contributed, expended, ag rye or received,
whichever is rg eater. When the Commission determines that no violation has
occurred, it shall publish a declaration so stating.
4. Referrals Between Agencies. Regardless of whether the Executive Director makes a
formal determination concerning probable cause, he or she may refer the matter to
another appropriate agency for purposes of enforcement.
G. Legal Services. The city attorney shall provide legal services to the Commission.
Additionally, the Commission mLay qmRILDy or contract for staff counsel to give advice to the
Commission and to take such action as the Commission may direct on matters that directly
involve the conduct of the city attorney.
H. Judicial Review. An interested person ma seek judicial review of ggy action of the
Commission.
I. Appointment of Special Prosecutor.
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1. When the ciV attorney determines that his or her office has a possible conflict of
interest and that the office should not investigate or prosecute alleged violations of the
Charter, City ordinances or regulations or statutes relating to campaign financing,
lobbying, conflicts of interest or governmental ethics the city attorney shall notify the
Cijy Ethics Commission which by a four -fifths vote of all of its members mLay re uest
the appointment of a special prosecutor to conduct the investigation. A special prosecutor
shall not be appointed when it appears from a preliminary investigation that an alleged
violation will warrant only an action for civil damages or administrative penalties.
2. The request for the a ointment of a special prosecutor shall be made to a standing
committee composed of three retired judges selected by the Commission at the beginning
of each odd - numbered year_ The three Judge panel shall name the special Msecutor, who
upon appointment shall have the authori ty to file and DrWO secute criminal and civil actions
in the name of the People.
3. Each fiscal vear there shall be included in the bud eg_t of the Ciiy_Ethics Co ission
the sum of FXXXJ (_$XX XXX ) for expenditure to support M Wecial prosecutor
appointed pursuant to this section. In the event that all these funds have been or are likel
to be expended before the end of anyfiscal year, the Commission may ask the Council
for an additional a ro riation. Under no circumstance shall the amount gppro nated or
provided under contract for a special prosecutor exceed two hundred fifty.,, thousand
dollars ($250,000) in env fiscalyear without Council approval The Council shall have 30
days (excluding weekends and holidays) followinng its receipt to accept reject, or modify
a request for additional funds from the commission.
4. Aerial prosecutor appointed pursuant to this section may _he removed from office
only by the action of the Commission, and only for good cause, pi2ysical disability,
mental incapacity, or any other condition that substantially_ impairs the performance of
the special prosecutor's duties.
J. Appropriation. The Council shall appropriate funds for the Commission at least one year in
advance of each subsequent fiscal year. _
SECTION 9. That section 2.40.150 (Expiration of provisions) of the San Luis Obispo
Municipal Code is hereby repealed.
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