Loading...
HomeMy WebLinkAboutItem 10 - Introduce an Ordinance amending Chapter 2.40 to require Electronic Filing of Campaign Disclosure DocumentsItem 10 �t�x ofi Council- d. Report ti ttjs o Department Name: Cost Center: For Agenda of: Placement: Estimated Time: 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. Packet Page 127 Item 10 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. Packet Page 128 Item 10 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. Packet Page 129 Item 10 Attachments: a - Draft Ordinance b - Legislative Draft c - Ordinance No. 1643 (2017 Series) Packet Page 130 Item 10 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. X Packet Page 131 Item 10 Ordinance No. (2020 Series) Page 2 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. z Packet Page 132 Item 10 Ordinance No. (2020 Series) Page 3 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. z Packet Page 133 Item 10 Ordinance No. (2020 Series) Page 4 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 z Packet Page 134 Ordinance No. 1643 (2017 Series) Item 10 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. 0 1643 Packet Page 135 Ordinance No. 1643 (2017 Series) Item 10 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. 0 1643 Packet Page 136 Ordinance No. 1643 (2017 Series) Item 10 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). 0 1643 Packet Page 137 Ordinance No. 1643 (2017 Series) Item 10 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. 0 1643 Packet Page 138 Ordinance No. 1643 (2017 Series) Item 10 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. 0 1643 Packet Page 139 Item 10 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. 01643 Packet Page 140 Ordinance No. 1643 (2017 Series) IteM,�'�,Q2 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 t✓ 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 O 1641 Packet Page 141 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. 01643 Packet Page 142 Ordinance No. 1643 (2017 Series) EXHIBIT A Iter1,aJP4 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 01643 Packet Page 143 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. 01643 Packet Page 144 Ordinance No. 1643 (2017 Series) EXHIBIT A Item g06 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. 01643 Packet Page 145 • 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