HomeMy WebLinkAboutItem 10 - Introduce an Ordinance amending Chapter 2.40 to require Electronic Filing of Campaign Disclosure DocumentsItem 10
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Council- d. Report
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FROM: Greg Hermann, Deputy City Manager
Prepared By: Teresa Purrington, City Clerk
Administration
1021
May 5, 2020
Public Hearing
30 Minutes
SUBJECT: INTRODUCE AN ORDINANCE 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
Introduce an Ordinance 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
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 (hereinafter referred to as "committees") to file statements,
reports, or other documents online or electronically with their local filing officer.
Pursuant to California Government Code Section 84615, the City Council must officially adopt
an Ordinance (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 first of a two-step
process to implement electronic filing.
The purpose of the part of the proposed Ordinance amendment is two -fold: 1) to require online
electronic filing of campaign statements, and, 2) to require online reporting of contributions and
independent expenditures with electronic signature related to elections of candidates for City
Council and/or the qualification or passage of local ballot measures within the City. Whereas
these filings are required under the Political Reform Act (GC 84200 et. sec.), they will now be
available electronically as a more cost-effective use of staff resources. The electronic filing
system will operate securely and effectively and will not unduly burden filers. In the case of
someone not having access to a computer, arrangements can be made to submit paper copies of
the forms which can be uploaded to the system by the Clerk's office.
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In addition, a change is proposed for 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. A legislative
draft of the changes is attached as Attachment B.
Background
Electronic Filing Provisions
Historically, City Council candidates and campaign committees have filed paper copies of
required campaign statements and reports. Once filed, the documents are made available for
review by the public. The City Clerk's Office spends a significant amount of staff time to make
such paper filings readily available to the public. Fortunately, Assembly Bill 2452 authorizes
local jurisdictions to receive campaign statements and reports solely in an electronic format.
Public access to campaign disclosure information is a vital and integral component of a fully
informed electorate. Transparency in campaign financing is critical in order to maintain public
trust and support of the political process. Nevertheless, these values require staff resources to
implement. As a means to more cost-effectively maintain the public trust, in 2016 the City
contracted with NetFile for installation of an electronic program for on-line submittal and
posting of Fair Political Practices Commission (FPPC) forms related to Conflict of Interest and
in 2020 staff added Campaign Disclosure documents. The program has been installed and is
operational, however, there is one remaining authorization necessary by Council in order to
make Disclosure Documents fully electronic.
Enforcement
Under existing provisions, the City's regulations direct that enforcement of campaign regulations
violations are to be enforced by the City Attorney, either by means of a criminal prosecution of a
civil action filed in the superior court. The City's Administrative Citation regulations provide
that any violation of the Municipal Code can be enforced by use of administrative citations, but
because of the enforcement specificity of the campaign regulations and the failure to reference
administrative enforcement, there is current ambiguity as to the availability of an administrative
enforcement remedy. The City Attorney's past experience has been that violations of the City's
campaign regulations have been relatively minor and inadvertent but have required an inordinate
amount of resource to address in conformance with the current provisions. The intent of the
proposed amendments is to provide expressly for a less time and cost intensive alternative to
addressing lower level violations, where the City Attorney determines that there was not
egregious or willful violation of the regulations.
Previous Council Action
On December 12, 2017, the City Council adopted Ordinance No. 1643 (2017 Series)
(Attachment Q. The purpose of this ordinance was to readopt Chapter 2.40 (Campaign
Regulations), removing the expiration provision and incorporating minor modifications to
continue regulating local election campaigns.
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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 is on the agenda for the May 5, 2020 City Council meeting 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
Funding Identified: N/A
Fiscal Analysis:
Budget Year: 2019-20
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.
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.
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Attachments:
a - Draft Ordinance
b - Legislative Draft
c - Ordinance No. 1643 (2017 Series)
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ORDINANCE NO. (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.
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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 state,
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.
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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.
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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 5t1i 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
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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.
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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 three 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.
DPublication. 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.
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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.
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).
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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.
BIf 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.
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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 thedate 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; provided,
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.
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ORDINANCE NO. 1643 (2017 Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, .READOPTING AND AMENDING CHAPTER
2.40 OF THE MUNICIPAL CODE RELATED TO ELECTION CAMPAIGN
REGULATIONS
WHEREAS, on the 20t' day of May 2014, the Council of the City of San Luis Obispo
adopted Ordinance No. 1599 (2014 Series) entitled "An Ordinance of the City Council of the
City of San Luis Obispo, California, amending Chapter 2.40 of the Municipal Code related to
Election Campaign Regulations."
WHEREAS, Section 2.40.150 of the City of San Luis Obispo Municipal Code states that,
unless readopted, Chapter 2.40 expires on June 30, 2018; and
WHEREAS, the City Council desires to readopt Chapter 2.40 with minor modification in
order to continue regulating local election campaigns.
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. Sections 2.40.010 through 2.40.130 of the San Luis Obispo Municipal Code
are hereby readopted in their entirety as set forth in Exhibit A attached hereto and incorporated
herein by this reference.
SECTION 2. Section 2.40.140 of the San Luis Municipal Code is hereby readopted and
amended to read as follows:
2.40.140 Council study committee.
A. Appointment. The council may appoint a committee of at least five citizens to study
the efficacy of this chapter.
SECTION 3. Section 2.40.150 of the San Luis Obispo Municipal Code is hereby repealed
in its entirety.
SECTION 4. 1f any provision, clause, sentence or paragraph of this chapter or the
application thereof to any person or circumstances shall be held invalid, such invalidity shall not
affect the other provisions of this chapter which can be given effect without the invalid provision
or application, and to this end the provisions of this chapter are declared to be severable.
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SECTION 5. 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
Tribune, 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 21"day of November 2017, AND FINALLY ADOPTED by the
Council of the City of San Luis Obispo on the 12' day of December 2017, on the following roll
call vote:
AYES: Council Members Gomez, Rivoire and Pease,
Vice Mayor Christianson and Mayor Harmon
NOES: None
ABSENT: None
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M yor Ekidi Hj/bion
ATTEST:
Carrie Gallagher
City Clerk
APPROVED AS TO FORM:
J. C. Wstine 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, thisQOM_day of J .
Carrie Gallagher
City Clerk
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Ordinance No. 1643 (2017 Series) ItemP199 3
EXHIBIT A
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.
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Ordinance No. 1643 (2017 Series)
EXHIBIT A
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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 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 three 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 fled 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.
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
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Ordinance No. 1543 (2017 Series)
EXHIBIT A
Item�aJP5
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.
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).
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.
d. 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 actions.
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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 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.
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. The request shall
contain a statement of the grounds for believing a cause of action exists. The city attorney shall
respond within ten 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 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 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; provided, 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.
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• Ordinance Amendment to
Chapter 2.40
Elections Campaign Regulations
Recommendation:
Introduce an Ordinance amending Chapter 2.40 of the City of
San Luis Obispo Municipal Code requiring Electronic filing for
campaign disclosure documents and providing for
administrative enforcement of campaign regulation violations
California Government Code
Section 84615
■ Effective January 2013 allows local government
agencies to require an elected officer, candidate,
committee or other person to file statement reports
and other documents online or electronically with their
local filing officer.
■ Requires, Council adopt an Ordinance codifying their
approved to require and authorize complete electronic
signatures and submission of electronic campaign
disclosure forms.
California Government Code
Section 84615
■ The system must be free of charge to the filers,
available to the public to view filing and include
procedures for filers to comply with the requirement
that they sign statements and reports under penalty of
perjury.
Current System
■ Candidates and Campaign Committees file paper
copies (2 sets) of required campaign statements and
report in person with the City Clerk's office.
■ Member of the City Clerk's office must review
documents for completeness and errors. Most
common error is in the adding of numbers.
■ The documents must be made available online and in
person for anyone who requests them. Online
documents must be reacted.
Electronic Filing System-NetFile
■ Filers create their filings in free online flier application
■ Filing submitted to the City Clerk's office electronically
■ No wet signature or paper filing required
■ Reaction filing is instantly posted online for complete
transparency to the public
■ Free filer training by NetFile
■ Data can be entered at any time and is placed on correct
schedule(s) and all subtotals/totals are made by the system.
■ Validated filings mean less amendments
■ Filer app prevents common mistakes made on paper
Enforcement - Currently
■ Campaign regulations violations are to be
enforcement by the City Attorney by means of criminal
prosecution of a civil action in superior court.
■ Historically violations of the City's campaign
regulations have been relatively minor and inadvertent
■ Required an inordinate amount of resources
Enforcement - Change
■ Campaign regulations violations would remain under
the enforcement by the City Attorney.
■ Would allow for the use of administrative citations for
violations the City Attorney determines are not
egregious and willful violations of the regulations.
Recommendation:
Introduce an Ordinance amending Chapter 2.40 of the City of
San Luis Obispo Municipal Code requiring Electronic filing for
campaign disclosure documents and providing for
administrative enforcement of campaign regulation violations