HomeMy WebLinkAbout05-02-2017 Public Comment, JohnsonCOUNCIL MEETING:
ITEM NO.:
Council Memorandum
.
DATE: May 2, 2017
TO: Mayor and Council
FROM: Derek Johnson, Assistant City Manager
VIA: Katie Lichtig, City Manager
SUBJECT: Democracy Voucher Program
ENC: March 15, 2016 Democracy Voucher Staff Report
R �C�IVEU
MAY 0 2 2017
SLD CITY CLERK
Council members have inquired about background and information related to publicly funded
elections because members of the public may come to Public Comment at tonight's meeting to
make a request of the City Council to place this matter on a future agenda for further consideration.
Attached is a copy of the staff report prepared by the City Attorney's Office in March 2016. The
report provides an overview of the issue and potential one-time and on-going costs to administer
a program.
Additionally, there have been requests about the expressed community support based on the both
on-line and in person combined survey results from community forum that lead up to the City
Council setting Major City Goal priorities on January 28, 2017.
The following summarizes the survey results:
1. Ranked 44 out of 107 potential candidate goals based on the online and in person dot
exercise for a Major City Goal.
2. Publicly funded elections received 103 total "dots" (both on-line and in person). Over
14,400 dots were submitted for all items.
Please contact Derek Johnson at 781-7112 or at diohnsonLa)slocity.or should there be any
questions.
l r.i+ 1I Council Agenda Report
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Meeting Date: 3/15/2016
FROM: Christine Dietrick, City Attorney
Prepared By: Jon Ansolabehere, Assistant City Attorney
SUBJECT: DEMOCRACY VOUCHER FUNDING FOR MUNICIPAL ELECTIONS
RECOMMENDATION
Discuss the citizen proposed "Ordinance to create a system of Democracy Voucher funding for
municipal elections" and provide direction whether the Council desires staff to further review
and analyze the proposed ordinance for further Council consideration.
DISCUSSION
Report in Brief
The City Council received a request from Mr. William Ostrander to consider an ordinance
regarding the public funding of municipal elections. The ordinance proposes to amend Chapter
2.40 of the City's Municipal Code and establish a comprehensive structure to allow public
funding of municipal elections via a "democracy voucher" system. This system would allow
registered voters to "assign" their $20 democracy voucher to any candidate that elects to
participate in this system. The voucher is proposed to be funded from the City's General Fund,
although other potential sources of revenue are identified. A candidate who elects to participate
in this program may only use the voucher funds to pay for his or her campaign, and may not
receive funds from other sources, with a few exceptions. Candidates who do not elect to
participate in the program can continue to receive campaign contributions subject to existing law.
In addition, the proposed ordinance establishes an ethics committee which, among other things,
investigates ethics violations, including violations of the City's election campaign rules.
Background
At its August 18, 2015 meeting, the City Council received a request from Mr. William Ostrander
to consider an ordinance regarding the public funding of municipal elections. The ordinance is
entitled "An Ordinance of the City of San Luis Obispo Amending the San Luis Obispo
Municipal Code to Create a System of `Democracy Voucher' Funding for Municipal Elections
and to make other Revisions to the City's Election Campaign Regulations" (the "Ordinance"). A
copy of the Ordinance is attached as Attachment A. During the meeting, the City Council
directed staff to place the Ordinance on the agenda for Council discussion.
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This report provides a high level overview of the Ordinance, as follows:
1. Current City Election Regulations;
2. Breakdown of how the Ordinance functions;
a. The Democracy Voucher Fund;
b. The Democracy Voucher Program;
c. Creation of the Ethics Commission and Oversight controls;
d. Other modifications;
Organizational Impacts;
a. City Clerk's Office;
i. Needed staff,
ii. Needed equipment;
b. City Attorney's Office; and
c. Other Departments.
This report is intended to provide a high level analysis of the Ordinance. What this staff report
does not do is provide a detailed analysis or review of the legality of the Ordinance or any of its
components. Further, at this time, City staff is not making any recommendations or suggested
changes to the Ordinance in regards to operation, management or consistency with the City's
other functions and rules and regulations. If the City Council directs staff to place the Ordinance
on the agenda for further consideration, a more detailed review and analysis of the Ordinance
will be performed and modifications will be recommended if deemed necessary.
Project Analysis
Current City Election Regulations.
The City's current election campaign regulations are set forth in Chapter 2.40 and are attached to
this report as Attachment B. The main components of these regulations are as follows:
Contribution limitations (§ 2.40.040): This section limits the amount each person can
contribute to any candidate or controlled committee, or the amount each candidate or
controlled committee can solicit from or accept from any person, to $300. These
limitations do not apply to contributions from the candidate's "immediate family." This
section further limits the amount any candidate can accept from anonymous contributions
to $50.
2. Flection campaign accounts (§ 2.40.050): This section mandates individuals who run for
a city elective office to open a campaign bank account with a bank located within the
City. This section further requires that such accounts be open to the City Clerk.
' A "controlled committee" is defined as a conunittee that is controlled directly or indirectly by a
candidate or state measure proponent or that acts jointly with a candidate, controlled committee, or state
measure proponent in connection with the making of expenditures. A candidate or state measure
proponent controls a committee if he or she, his or her agent, or any other committee he or she controls
has a significant influence on the actions or decisions of the committee. See SLOMC § 2.40.030 and Gov.
Code § 82016.
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3. Campaign statements (§ 2.40.060): This section requires campaign treasurers to file
certain statements with the City Clerk.
4. Campaign � signs. (§ 2.40.070): This section sets forth certain size, time, place and manner
restrictions on the placement of campaign signs within the City.
In addition to the City's campaign regulations, the City regulates "Municipal Advocates" which
is defined as "Any person, business entity or other organization, including an individual contract
lobbyist, which contracts for economic consideration to communicate with any officer or
employee of the City of San Luis Obispo for the purpose of influencing local legislative or
discretionary action on behalf of any other person." With some exceptions, Municipal Advocates
are required to register with the City.
The Proposed Democracy Voucher Ordinance.
The Ordinance is being proposed by Mr. William Ostrander of Citizens Congress, 2014 Inc., a
non-profit organization devoted to campaign finance reform. The proposed Ordinance would be
one of the first in the Country to utilize a "Democracy Voucher" system for publicly funded
elections.Z Some states and other cities, however, do have some form of publicly financed
campaigns including: Los Angeles, San Francisco, Richmond, Seattle, Tallahassee,
Albuquerque, Santa Fe, Boulder, and New York.
The following is a breakdown of the various components of the Ordinance:
1. The Democracy Voucher Fund. Section 6 of the Ordinance proposes a new section
2.40.082 be added to the City's Municipal Code. This section establishes the "Democracy
Voucher Fund" and appropriates $20 per registered voter per year from the City's General Fund
for this account. The City currently has 24,971 registered voters which would equal a fund
amount of $499,420. Section 6 also authorizes "other sources of revenue" to be deposited into
the fund including: (a) unspent voucher funds from the prior election; (b) fines levied against
candidates for violations of election laws; (b) voluntary donations; (c) other funds appropriated
by the Mayor and City Council; (d) interest made on deposits; and (e) other sources of revenue
designated by the Mayor and Council.
It should be noted that Section 7 of the proposed Ordinance includes a $50,000 limit that
any candidate may receive in Democracy Voucher funds for any single election. The result is
that this limit acts as a stop gap measure for this fund. For example, in order for the fund to be
pretty much fully depleted in any election, there would need to be ten candidates, each of whom
elect to participate in this program, and each of whom obtain the maximum amount of voucher
funds. The corollary would be that each of the 24,971 register voters would use his or her
voucher. In the November 4, 2014 general election, the City of San Luis Obispo had eight
candidates for one Mayoral seat and two council seats and experienced an approximately 46%
and 79% voter turnout, respectively.
z In early November of last year, Seattle passed a similar democracy voucher program.
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2. The Democracy Voucher Program. Section 7 of the Ordinance proposes a Democracy
Voucher Program wherein a $20 pre -loaded "Democracy Voucher Debit Card" is mailed to each
registered voter for each election within the City's jurisdiction. Candidates may then only receive
funds from holders of the Democracy Voucher via a secure online assignment if the candidate
meets certain eligibility requirements, files a statement with the City Clerk to participate in the
program and agrees that the sole source of the candidate's campaign funds will be from
Democracy Vouchers assigned to the candidate by the registered voter and the candidate's
personal funds.3
The Democracy Voucher Program includes certain limitations on the amount of and
when assigned funds may be redeemed by the candidate. Specifically, the Ordinance provides
the following redemption schedule for each candidate who chooses to participate in the program:
(a) No more than $10,000 in funds may be redeemed prior to September 1St of
the municipal election year; and
(b) No more than $50,000 in funds may be redeemed in any election year.
Democracy Voucher Funds may only be used for campaign costs or debts and any unspent
proceeds must be returned to the City. In the event a candidate uses such funds for non -campaign
related expenses, enforcement action would be needed in order to recover the costs.
3. Ethics Commission and Oversight Controls. Section 8 of the Ordinance proposes the
creation of a City Ethics Commission. The Commission would be a five member body whose
duties and responsibilities are to:
(a) Audit disclosure statements and investigate violations of the City's
elections rules and to report findings to the City Attorney and other
appropriate agencies;
(b) Make recommendations to the Mayor and City Council regarding
campaign finance reform;
(c) Make adjustments based on CPI4;
(d) Prescribe forms related to the Democracy Voucher and campaign
regulations;
(e) Prepare and public manuals and instructions related to campaign
regulations;
(f) Develop an education program related to campaign regulations;
(g) To develop and approve its own budget; and"
(h) To receive grants and other appropriations.
3 The amount of personal funds is limited to $300.
4 It is unclear from the proposed Ordinance what section 2.40.086.C.3 means, however, any fees or other
similar City charges are usually set and/ or amended by Council Resolution.
5 Article VIII of the City's Charter sets forth the process for budget adoption and specifies that the Budget
is to be adopted by the Council after public hearing.
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In addition to the above duties, the Ordinance includes specific provisions related to
"Investigations and Enforcement Proceedings." See proposed section 2.40.086.F. This section
provides that the Commission shall investigate alleged violations of state law, City Charter or
City ordinances related to "...campaign finance, lobbying, conflicts of interest and governmental
ethics" upon the determination of "sufficient cause" of such violation based on the receipt of a
sworn complaint or on the Commission's own initiative. This section creates an administrative
enforcement process separate and apart from the City's administrative citation process.6 The
Ordinance also proposes provisions related to the appointment of a special prosecutor and the
establishment of a separate fund in an undetermined amount to finance those services.
Section 8 of the proposed Ordinance also establishes an Executive Director who would
serve at the will of the Commission. As written, the salary of the Executive Director would be set
by Council based on a recommendation of the City Manager.
4. Other Modifications. The Ordinance also proposes certain modifications to the City's
existing campaign regulations set forth in sections 2.40.040 and 2.40.060. The most significant
modification to these sections is the proposed requirements related to "independent
expenditures." As defined by this Ordinance, an independent expenditure means an a payment or
a promise of payment totaling $500 or more "...that clearly identifies a candidate for elective
City office, or for a communication that clearly identifies a candidate for elective office, but does
not expressly advocate the election or defeat of the candidate, and that is disseminated,
broadcast, or otherwise published within 45 days of an election..." The Ordinance requires any
person who makes such an expenditure to file a report with the City Clerk within 48 hours of
making or promising such payment disclosing the "name of the person, address, occupation, and
employer, and the amount of the payment." 7 This section also has reciprocal reporting and
disclosure requirements by the person receiving the payment or the promise of payment for an
independent expenditure.
CONCURRENCES
The Finance and Information Technology Department concurs with the analysis in this report.
FISCAL IMPACT
The following is an educated estimate of the minimum additional resources that will be needed
in order to implement the proposed Ordinance.
c Please note that this process has not been evaluated for legality under Government Code section
53069.4.
It should be noted that this provision would need to be revised to be with internally consistent
Government Code section 82031.
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STARTUP COSTS (ONE-TIME)
Democracy Voucher Fund
$499,420
Web a e design
$20,000
Public Education/ Outreach
$20,000
_
Equipment: (two workstations, Valuecard equipment
$12,500 - $16,000
(tablet reader @ $400) and software development to
work with City computers)
Democracy Voucher Cards ($.60 each)
$15,600
Software development for "secure online assignment"
$15,000 to $25,000
program
Program Manager
$54,234
.5 FTE Special Projects Manager
TOTAL:
$636,754 - $650!1254
Amount needed to "replenish" the fund after
initial funding: 8
City Clerk's Office: � �
.3 FTE City Clerk
.2 FTE Assistant City Clerk
.5 FTE Deputy City Clerk
.75 FTE Admin. Assistant
$124,855@50% disbu► sementy
$49,942 @20% disbursement
$24,9711210% disbursement
$37,500
$18,000
$35,438
$45,000
8 It is unclear how much of this fund will be consumed for each election. Citizens Congress has proposed
a figure of a 20% consumption rate which would require bi-annual "replenishment" of approximately
$99,884, or annual replenishment rate of $49,942, as noted above.
9 Note that this amount is the annual amount. The total fund is divided by two to account for the election
cycle. Please also note the stop gap limitations discussed above in the Democracy Voucher Fund section.
10 Implementation of the Ordinance will affect other City departments both directly and indirectly. At this
time, it is difficult to estimate what additional resources will be necessary for these departments to absorb
the additional work that would result from the Ordinance, however, we believe that such additional work
will be significant. For example, the City's Finance Department will need to oversee and manage the
Democracy Voucher Fund and the City's IT Department will need to address software issues with the
Voucher Card. If significant investigation and/ or legal action is needed in order to enforce the
Ordinance, then those costs can also be significant.
11 It should be noted that we anticipate work flow to "ebb and flow" with the election year.
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City Attorney's Office:
.3 FTE Assistant City Attorney
$40,500
Plus any additional special prosecutor and/ or
Information not available
special investigator costs
Mailing
$2,197
($4,394 per election cycle for bulk mail)
Public Education and Outreach
$2,500 - $5,000 peryear
Equipment maintenance/replacement
$5,000
Democracy Voucher Card Replacement
$7,800
($15,600 per election cycle)
Ethics Commission Compensation
$0 - $6,150 (5 members @$1,230 per year,
same as PC)
Ethics Commission Executive Director
$50,000
Total Annual Operational Cost Z:
$240,500 — $377,440
ALTERNATIVES
Because this is a discussion item only there are no proposed alternatives.
12 Range of costs includes election and non -election years and will vary depending on the utilization of the
Democracy Voucher Fund.
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11.a
COUNCIL MEETING: �!$ U
ORDINANCE NO. ___ (2015Ser':es)
AN ORDINANCE OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
AMENDING THE SAN LUIS OBISPO MUNICIPAL CODE TO CREATE A SYSTEM
OF "DEMOCRACY VOUCHER" FUNDING FOR MUNICIPAL ELECTIONS AND TO
MAKE OTHER REVISIONS TO THE CITY'S ELECTION CAMPAIGN
REGULATIONS
WHEREAS, the Council of the City of San Luis Obispo conducted a public hearing in the
Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on
2015, for the purpose of considering changes proposed to update the Municipal Code.
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. That section 2.40.020 (Purpose and intent) of the San Luis Obispo
Municipal Code is hereby amended to read as follows:
2.40.020 Purpose and intent.
A. It is the purpose and intent of this chapter:
L To promote integrity, honesty, fairness, and transparency in municipal election
campaigns.
2. To prevent corruption, or the appearance of corruption, which results from the real or
imagined influence of large contributions on the conduct or actions of candidates elected
to office.
3. To ensure a level of discussion of public issues adequate for a viable campaign by
providing voters with the information necessary to make an assessment of each candidate
or measure before voting.
4. To require public disclosure of campaign contributions and expenditures made in
support of or in opposition to candidates or measures in municipal elections.
5. To place realistic and enforceable limits on the amounts persons may contribute in
municipal election campaigns.
6. To enable all San Luis Obispo yc?tcrs tgpggicipgte in the financing of municipal
election campaigns through contribution of "democrat vouchers" to eligible candidates.
?. To„provide candidates with the o ort ni to substantially bind their camtti ins usinu
",demgcracy vouchers" contributed by an snd all San Luis Obispo voters:
6 8. To ensure that funds contributed to a campaign committee are used solely for
campaign purposes.
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-7 9. To provide full and fair enforcement of all the provisions of this chapter.
B. By enacting this chapter, the council does not intend to deprive or restrict any citizen of the
exercise of rights guaranteed under the United States Constitution and the California
Constitution.
C. The city council takes specific notice of the findings and declarations made in the Political
Reform Act and finds and declares them applicable to San Luis Obispo and a basis for enacting
this chapter.
D. It is the intent of this chapter to impose limits on the amount of money that may be
contributed to a candidate or controlled committee to achieve the purposes specified in this
section. This chapter is not intended, and shall not be construed, to establish any reporting, filing,
or procedural requirement in addition to, or different from, the Political Reform Act or the
regulations adopted by the Fair Political Practices Commission (FPPC), except as specifically set
forth in Sections 2.40.050 and 2.40.090 infra.
SECTION 2. That section 2.40.030 (Definitions) of the San Luis Obispo Municipal Code
is hereby amended to read as follows:
2.40.030 Definitions.
The following teams have the meanings identified below. Other The terms used in this chapter
shall have the same definitions as specified in the Political Reform Act and FPPC regulations. In
those cases where definitions in the Political Reform Act or FPPC regulations contain a specific
reference to any state election, candidate, or electoral criteria, the definition shall be modified to
reflect the municipal equivalent, or, in the absence of a municipal equivalent, to delete the
specific reference.
A. "'Democracy Voucher Debit Card" means a stored -value pLayment. card issued by the City of
San Luis Obispo ... .
Q. "Election cycle" not nns_the period beginning on the day after the &evf'tiie Ig s, eut
aneral election for tate specific office or seat that a candidate is sepking and ending on the date,
of the next general election for that office or seat.
C. "Fund" means the Democracy Fund created by XXXXX
D. "General election' means an election held on the first Tuesday, following_the first Monday of
November pursuant to Cid Charter Article III Section 302,
E. "Participating candidate" means a candidate who qualifies for Democracy_ Voucher campaign
funding
2
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F. "Qual.ifyinAignature" means a verifiable si i�atufc�of a registered voter resident of the City_ o�
San Luis Obispo
G. "Special election" means an election other than a general njunicipal election held pursuant io
City Charter Article III Section303.
SECTION 3. That section 2.40.040 (Contribution Limitations) of the San Luis Obispo
Municipal Code is hereby amended to read as follows:
2.40.040 Contribution limitations.
A. Contributions by Persons to Candidates and/or Controlled Committees. No person shall make
any contribution to a candidate and/or any controlled committee connected with that candidate,
with respect to any single election, which would cause the total amount contributed by such
person to the candidate and any controlled committee connected with that candidate, when
combined, to exceed three hundred dollars.
B. Acceptance or Solicitation by Candidates or Controlled Committees. No candidates er
controlled committee 4hall sol or-aeoept-afty-eontr4hation Fie l) would $mise
�ms'rk+E}%�i'-1,;#.liecrrij=;�cni"n--f-1,'sc➢r^rir'— Fespeetzrr "',
aftJA* airy-ew treHed eemMikee conE3 ,
. or aant of a candidate or controlled wamtt ce shalI solicit or
direct rnopgy for or on behalf of an pplitical action committee, political Darty, or ally
org,mization, other than the participating candidate's own controlled committee, in connection
with an election duriM the same election cycle. For the pumoses of this section, appearing as a
speaker or featured guest at a fundraising event for a committee or entity shall constitute
soliciting -money for such committee or entity
C. Contributions by Candidates. The provisions of subsections A and B of this section shall not
apply to contributions from a candidate o+- }min li-s or- hei• ininiera€tete-fawRy to any controlled
committee connected with that candidate, nor to the expenditure, by the candidate, of his or her
personal funds. For-purpeges oft! h%stetien, u:,...,....diate r "l,,e+�a-et►rzdid.,.v',. , ole...a.+
trl'lieef�t+isle+'-ypfl... .d._........:parmeF,an(Yer-
D. Anonymous Contributions. No candidate or controlled committee shall accept anonymous
contributions, with respect to any single election, which exceed fifty dollars. Subject to the
provisions of state law, in the event a candidate or controlled committee receives an anonymous
contribution that would result in a violation of this subsection, the candidate or controlled
committee shall promptly pay that sum to the city for deposit into the general fund to be used to
defray the costs of municipal elections.
E. Coordinated Lxpenditures. Any expenditures made by, any_person in cooperation,
consultation, or concert, with, or at the request or suggestion of, a candidate his authorized
political, committees, or their M&qts, shall be considers to be a contribution to such candidate.
F. Dissemina ion, distribution, or republication of candidate a mpaiSn_materials.
3
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1. General rule. The financiniz of the dissemination, distribution, or republication, in
whole or in part, of any broadcast or any written,_ graphic, or other form of campaign
materials prepared by tl:e candidate,_t a candidate's au horized committee, oruri agent of
either of the foregoing shall be considered a contribution for the pqrposes of contribution
limitations and renortina resnonsibilities of the nerson Making the expenditure. The
candidate who prepared the cam i n material does not receive or accWt an in-kind
contribution,_and isnot re uired to report as expenditure, unless the dissemination,
distribution, or republication of campaign materials was done in concert or cconeration
with or at the request or sgggestion of such candidate.
2. Exceptions. The following uses of campaign materials do not constitute a contribution
to the candidate who originally ypprepared the materials:
a. The campaign material is disseminated, distributed or republished by the
candidate or the candidate's authorized comnuttee. who prepared _that „material
:
b. The campaign material is incorporated into g communication that advocates the
defeat of the candidate orpartY_that pr pared the material, or
c. The campaign material is disseminated, distributed, or republished in a news
story. commen or editorial distributed throw h th facilities ofan
broadcasting station, newspapermaaazine, or other periodical publication, unics_s
such facilities are owned or controlled by Wpoliticall art . IDOiitical committee,
or candidate.
SECTION 4. That section 2.40.040 (Contribution Limitations) of the San Luis Obispo
Municipal Code is hereby amended to read as follows:
2.40.060 Campaign statements aid ether repparti-o requirements.
A. Required Filing Schedule. Every campaign treasurer shall file with the city clerk campaign
statements as required by the provisions of the Government Code and in a format acceptable to
the city clerk.
9� Gonten Each state campaign statement filed shall contain the information required under the
provisions of the Government Code and any contributions greater than fifty dollars.
H. ludo updept I xpenditures_and Communications Identifying State Candidates..
1. Any person who makes a_paxment_or as pr mise ofpayment totaling Five hundred
dollars 5401 or more at any time for an "independent expenditure" as defined by Cal
Political Reform Act Section $2031 that clearly identifies a candidate for elective City
office, or for a communication_ that clearly identifies a candidate fqr alective: City_oifce,
but does not expressly advocate the election or defeat of the candidate, and that is
disseminated, broadcast. or otherwise publisLed within 45 days afan election, shall file
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online or electronically with the City Clerk a„report disclosing,_Lilc mine of the person,
40re occu tion and em to er and amount gf the mint. The report shall be fled
within 4 hQurs_o making the payment or time promise to make the payment.
2. If M mrson has received a p4yment or apromise of a tea ment from other ersons
totaling five hundred dollars ($ i0Q) or more for the purpose of -making a communication
described in subdivision 1 the oerson receiving the payments shall disclose on tine
report the name, address, occupation and emplmLer� and date and amount received from
the rsons . This re uirement shall not a ply to a rsnn who in the business of
providing oods or services and who receives or is promised the payment for the purpose
of fprroviding those goods or services.
_Any pUment received by a pgagn who makes a communication described in
s3gbdivision f t is subiec* to the limits specified in Section 2.40 :040 if the communication
is made at the behest of the clearly identified candidate.
C. Filing. Each document required to be filed in this chapter shall be filed with the city clerk
during business hours, and elsewhere as may be required by the Government Code.
D. Publication, The city clerk shall promptly, following receipt for filing, post a copy of each
campaign statement on the city of San Luis Obispo's website for public inspection, redacting
personal information in accordance with state law. The city clerk shall report on the website of
any candidate and/or committee that has failed to comply by the required deadline with the
campaign statement requirements pursuant to this section or state law. In addition, the city clerk
shall cause to be published a display ad in a newspaper of general circulation advising the public
how and where to access copies of the filed campaign statements on the city of San Luis
Obispo's website, at the time mail ballots are distributed for said election.
SECTION 5. That section 2.40.080 (Responsibilities of city clerk) of the San Luis Obispo
Municipal Code is hereby amended to read as follows:
2.40.080 Responsibilities of city clerk.
A. Duties. In addition to any other duties required of the city clerk under this chapter, the city
clerk shall:
1. Prescribe and furnish, without charge, appropriate forms for all campaign statements,
documents, ad reports and other procedurespovidcd Jor or required to be filed by this
chapter.
2. Determine whether required applications, forms, statements and declarations have been
filed and, if so, whether they conform on their face with the requirements of this chapter.
3. Promptly notify all persons who have failed to file an,app-
iication, statement or other
kincrwoik_in the form and at the time required by this chapter.
4. Report, in writing, apparent violations of this chapter to the city attorney.
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5. Promptly, following receipt for filing, post a copy of each campaign statement on the
city of 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 circutation advising the public how and where to access copies of the filed
campaign statements on the city of San Luis Obispo's website.
6. Compile and maintain a current log of all filed statements pertaining to each reporting
committee.
7. Implement and administer the Democracy Voucher program established by this
chapter, including but not limited to:
a. Making regulations, defining t ,Ilns establishing older rules or promulgating
any other administrative regulations or_guidclines not inconsistent with the
pKm igions of this chaoter,
b. liar IQ each-almlion cyc ex informing the public a out Democracy,Vouchers
and the Prograrni
c. Publishing appropriate guidebooks for candidates and Democracy Voucher
reei*nts, and all forms, instructions, brochures and documen_t_g necessary and
proper for this Program;
d. Promptly after the effective date of this ineasuregroo'_e_cting; Democracy
Voucher Program revenue, expenditures, and Democracy_ Voucher Program
Funds rProgram Funds' balances from 2415 through at least 2421and revising;
and updating sllch projections regaEarlyx
e:_ Mana�ing.Democracy Voucher PtQ ram Funds as a tiduci ensuringprope
accumulation and distribution of funds &6niz nonelection and election years, to
achieve Program purposes and goals.
EB ,lanuga 1st of each municipal election year, publishing an "Available
Program funds Limit" for that Year for Democracy Voucher redemptions, using
best efforts to rpq nabs rn oject and ensure that ad�te Program Funds are
available for that election year consistent with this chapter, its goals andpumoses
and all reasonably foreseeable circumstances and contingencies;
g. During any municipal election year, as soon as receiving or reasonably
believing it shall receive Democrac,�Vouchers for redemption in excess of the
Available Program Funds Limi fir that year,pnblicly annr�uncing that
Democrac Voucher Pro ram Funds are no Ion eg r available and setting a prompt
deadline date for Democracy Voucher delivery.,fbllTwdng which the ci!y clerk
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shall consider democracy Vouchers, received and available Program Funds and
shall allocate rem aininst available 1'ro ram proportionately r unredeemed
verified_ Demoeragy Vouchers on hand., pro rata among all participating
candidates for all offices without discrimination• and
h. In the event a spgcial election is cal W, setting aside Democracy Voucher
Program. Funds for such election in n amount it deems upprapniate,_and altering
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and img[ementing standards,procedures. limits and deadlines as similar as may
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be practicable to those provided in this chapter for suah saecial election.
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SECTION 6. That section 2.40.082 (Democracy Voucher Fund) of the San Luis Obispo
Municipal Code is created to read as follows:
2.40.082 Deniocracy_'Youcher Fund
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A. Establishment of Democracy Vouclir Fund. A s ial dedicated non -la si Democrac
Voucher Fund shall bw, established by the Mayor and Council for the purpose of
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1. Providing funds to the election campaigns of certified participating candidates in
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gXqbjngc_ for redccmcd Democracy Vouchers; and
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2. Ping for the administrative and enforcement costs of the city clerk, other ci. staff
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and the San Luis Obispo Fair Campaign Practices and Ethics Commission related to the
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administration of the Democracy Voucher Program.
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B. AP to the Dernocracy Voucher Fund,
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1. The Mayor and City Council shall annually agproopriate [$201 Der City of San Luis
Ob_� sno re xisteredoter rear from the Ci General Fund to the Democracy Voucher
Fund. The Council's duty to aDpropriate funds for the Democracy Voucher Pr gram shall
cease upon the termination of the Democracy Voucher Program.
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2._ Other sources of revenue to be deposited in the DemocE cy Voucher Fund shall
include:
a. UnsReA Democracy Voucher funds distributed to an amici 'n candidate IV
who does not remain a candidate, until the election for which they were °
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distributed, or such funds that remain unspent by a participating candidate c
following the date of the election for which thewere distributed;
b. Fines levied -by the Commission against candidates for violation of election
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c Volunta donations made fly to the Democracy Voucher l:und: a
d. Other funds appro rioted by the or and C4Y C uncia•
Packet Pg. 113
e. AM interest generated the Fund,• and
f. Any other sources of revenue determined as necessary by the Mayor and City
Council.
3. The amount in the Democracy. Voucher Fund shall _not -exceed $500,000, In order to
cow with this limitation revenue that would oth rwise be de sited in the Fund
pursuant to subsections Q andL2) shall instcad be deposited in the City general Fund.
4. The Qfty Council ingy, by adoption of an ordinance b not less Chart two-thirds vote of
its member_ shin, make an official declaration of fiscal emergcmy_and suspend or reduce
the amount of tete annual appropriation specified in subsection (11. Any such ordinance
suspending or reduciM the annual a ro riation shall be effective for no more than one
year.
C. Cost of Living Adjustments. Ile (city clerk/CommissionI shall adiust the dollar amounts
specified in subsection (B) of this Section upward or downward, for changes in the east of living,
by the percent chk m a Consumer Price Index.
SECTION 7. That section 2.40.084 (Democracy Voucher Program) of the San Luis
Obispo Municipal Code is created to read as follows:
2.40.084 llemocracy_vuucher Program
A. Issuance of Democracy Voucher Debit Cards. On the First business day in jinsert monthlof
every municipal election year, the city cleric shalt mail to eachperson who -w-9-by-the previous
Februarylst, duly registered Coyote in the City of San Luis Obispo, at his or her address in the
voter re 'stration records, a $20 Democracy Voucher Debit Card, except that city clerk may
deliver a 120 Dernogggy Vouch r in n titer manners if im lementation ol'a Dem crac
Voucher Debit Cards stem is not feasible. Thereafter 61y clerk shall regularty issue a 20
Democracy Voucher Debit Card to any person ecoming a dWy_registered City of San Luis
Obigpo voter after the previous Februga 1 st up until October 1 st of the election year. An
registered voter may Muest that a Democracy Voucher Debit Card be mailed to an address other
than that indicated in the voter registration records, or be delivered at the office of the city rler.,k,
as soon as the ciV clerk_ shall have developed_ a secure stem f such distributions of
DernoqMcy Voucher Debit Cards. No individual who is pat resident and registered voter of the
City of San Luis Obispo, no corporation or other non -human entity, and no pgrson ineli ible to
make political contributions under federal or state law, ma receive a Democracy Voucher Debit
Card.
B. Form of Do c!Lacy Voucher Debit Cardl. Each 20 Democracy Voucher Debit Card shall
insert design g and securiiY spgoifications for such debit cards—e whether the card contains
the registered voter's name, a unique voucher identification number tete election year, eLL..I and
any _information the city clerk deems helpful and necessary for administeringasecure
Democracy Voucher Debit Cards stem,
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C. Assi r:i,_ inert of Dernggggy Voucher Funds. Democracy Voucher funds are only transfe ble
or assignable as stated herein. Any person properly obtaining and holding a Democracy Voucher
Debit Gard mawassign all or part of the card's value bvlinsert procedural language after further
research]. The city clerk shall establish a secure online system for assignment of Democracy
Voucher funds no later than[prior to the 2415 election cycle], unless the city. clerk determines,
this_tamet_ date is not practicable: and in any, event no later than the JLOI 81 election cycle.
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D. Limitations on Assignment of Democracy Voucher Funds.
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1. A person ma only assign Democracy Voucher funds to a candidate who has chosen to
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pgrticipate in the City of'San Luis Obispo Democracy Voucher Program andwhohis
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filed a signed_ statement of participation and pledge with city clerk as described below.
No Dernocrapy Voucher funds may be assigned after the last business day in November
follow nsr-the election or to any candidate filin for amici a ion who then fait to
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uq alify or becomes emqualified for the Mition sou ht or for the Program. A candidate or
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registered candidate representative mg!y seek assignment in pgrson or through
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representatives or by assisting a voter to access the secure online system imalcmcnted
the city clerk. A valid assignment is irrevocable. A_ person may assign any amount of his
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or her Dernourapy Voucher funds to a candidate. AssjIgnment or transfer for cash or an
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consideration is prohibited. Offering to purchase, buy or sell Oernocraqy Voucher funds
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is prohibited. Na rson may ive or gift a Democracy Voucher Debit Card or the value
of such card to another person, exce t by assigning it to a candidate as provided herein.
Democracy Voucher Debit Cards have no cash value and are not assets, income or
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prrot�egy of the holder. Demoo ey Voucher funds may not be assigned by, proxy, power
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of attorney or by an agent.
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Z. A Democrat Voucher Debit Card expires if the holder is no [on rer a re ristere:d voter
and resident in the C' of San Luis Obispo or no ton er or not eligible to make political
contributions under state or federal law, if such circumstances take placerioo or to the
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assignment of Democracy Voucher funds to a qualified candidate. The holder of a
Democrac. Toucher Debit Card assumes the risk that he or she may change his or her
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mind after assignment of DemocracyVoucher funds,_nr that the Democracy Voucher
funds may not have use or he redeemed due to ai2y contin enc includin but not Limited
to unavailability of Program funds;a candidate's death, disgualification,.drop in& qo
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failure to redeem or use the Democracy Voucher Funds.; a candidate's not quuatiFving ar
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violating the terms. ofqualifcatiom or otherwise.
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E. Candidate Qualification for Qgmperacy Voucher Prn yarn
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1. -Only a candidate who Has riled with the cijy clerk for participation in the Democracy
Voucher Program may receive assignment of Democrat,}+ Voucher funds, OW+tea 0
candidate certified as qualified by the cit clerk ma redeem a Democracy Voucher funds E
assigrvmnt._Dn�a verson ell ible for and seeking the office of Mayor or City Council
shall be eligible to file for Pro am participgtion. a
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2. Reguiremcnts for Pro ram. To seek qualification, the candidate shall file with the city_
cleric, on or after July 1st the year before an election ►ear and within two weeks after
filing a tfeclaration of'candi(bacy, a sworn statement attcsting_t_o his or her intent to
participate, asserting, that the candidate shall timely file or has Fled a declaration of
candidacy for the office indicated, and that the candidate shall comp with Program
requirements and applicable- campaign laws. Such Program mquirements are that the c
candidate:
a. shall take cart in at least threepublic debates for each election {and the ciLy w
clerk mawaive r reduce the number of debates if uali in candidate makes_ a
all reasonable efforts to participate in debates and similar public events,; .2
b. shall not expend, contribute or lend to the candidate's own controlled
committcc ncrsonal funds in cxccgsoff 300; and --
c. shall not solicit or accept any contributions except for the personal funds
allowed by the areceding subsection and the value of Dcmocrac Voucher funds
assigned to such candidate {sub'ect to exceptions provided herein).
3, Qualifying Signatures.Ta qualify_ for the Democracy Voucher Pro ram candidates
shall_ demonstrate_ to the city clerk that they have received at least 250 '!quali in
signatures." The city clerk shall maintain a list of gualified candidates and make it readily
accessible to the public,irnc;ludi:gig by publishing it on city clerk's website.
a. Loss of Qualificafign. A candidate loses qualification for the Program by publicly_ o
atznouncing withdrawal, abandoning thelace, or if the city clerk finds suf#iicient material04
v�iaiatia�s of election laws or_ Program rc:q_uirements such as violation of soendingor 4)
contribution limits or fraudulent or attempted fraudeilent assignment of Democracy U
Vouchers. C
F. Redemption of Democracy Vouchers.
The city. clerk shall redeem Democracy Vouchers only after verifvina the assignment
by ensuring the Democracy Voucher Debit Card was ,issued -to an eligible person, and
veru in the signature written bysuch.persgn as vert of the assignrrtent Drocess. To
verify signatures the city clerk my employ the division of fcouft regi trar7 , which
verifies signatures for initiadyc petitions and mail -in ballots.
2. The city clerk shall redeem Democrac Vouchers on ublishedCcgular redemption
dates that shall be no less fr uent than twice A month and mgy redeem Vouch on
other dates notified in advance if the OV cl rk dgems it Macticable. The ci clerk shall E
not redeem any Democracy Voucher received by the city clerk after the Frst business day
in the month of December after ti=e general election.
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3 6 partleigaii� candidate shall be eligible to receive from the city no more than
110.000_ itti_Democracy Voucherfunds Prior to September 1st_of the municipal election
ear.
4.--AParticipatingcandidate shall be eligible to receive from the city no more than
�50,000 in Demoomm Voucher funds durin a sin le munici al election Year.
S. In the event that insufficient funds exist in the Democracy Voucher Fund to satin
candidate Democracy Voucher redemption requests_ up to the limit established by Section
2 40.0. 84(F(4),participating candidates shall be RgEmitted to solicit and accept
contributions pursuant to the limit established by Section 2.40.040[8).
G. Limits on Use of Voucher Proceeds. Candidates steal l use.Democracy Voucher proceeds only
for campAign costs or debts for the relevant office _and _clecdoncycic, and mgly, not laic such
proceeds after a reasonable period fto be set by the city clerk) Following the election to Pg
campaign debts. Candidates shall not use Democracy_Voucier_proceeds for any cash payments
or in violation of any law; nor to pay„ the candidate (except to repay or reimburse a loon to his or
hertpolitical committee or cgMiun in an amount not greater than thatorovided in
2.4_ 0.084{E)(2)Cc • nor to pAy any entity in which the candidate or an immediate family member
holds a ten percent or greater ownership interest; nor to pay any amount over fair market value
for any services, goods, facilities or things of value; nor to "a any_penalty_or fine; Par to pay
agy_impSural costs or office funds cost.
H. Retum of Democracy Voucher Proceeds. A candidate who has redeemed a Democracy
Voucher, then withdraws, dies, becomes ineligible, loses qualification, or is eliminated in or wins
as general election, shall within a reasonable period, as defined by the city clerk, pgy all debts and
obligations, account to city clerk anti restore_to city clerk and the Pmgram"Unspent Democracy_
Voucher i'rocccds." The city clerk shall define " unspent Democracy 'Voucher Proccede: by rule.
SECTION 8. That section 2.40.086 (City Ethics Commission) of the San Luis Obispo
Municipal Code is created to read as follows:
2.40.086 City Ethics Commission
A. Establishment of City Rthics CgMmissinrt. There shall.be a. City Ethics Commission that shall
have the powers duties and responsibilities set forth in this Section and elsewhere in the
Munici al Code. The Commission shall have five members each ofwhom shall be a art -time
commissioner who serves a staggered five-year term bninningon Jud 1 and e_ndin„g on June 30.
No member who has served a complete five-year terra hill be eligible for rea intment.
1. Al2Mntment. Commissioners shall be chosen at random from a,pool of self -nominated
Qividuals. Each member of the Commission shall be a r___eg'stered voter of the City. No
member of the Commission shall seek election to any City office unless the election for
that office is to be held at least two years followintt the expiration of the term of office of
the commissioner. During his or her tenure, no member of the Commission shall hold an_y_
other public office or particip@te in or contribute to a CLW
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2. Removal. Members of the Commission may be removed by a two-thirds vote of the
Council for substantial neglect of duty_ -grass misconduct in office, inn6ili to disollar�c
th wer a d dntie f atfice r Ajation of this Sectio o after writkn.notice of the
grounds on which removal is sought and an opportunity for a reply.
3. Vacancies. Appointments to Ell vacancies on the Commission shall be made within 30
days and shall be for the unexpired term of the member whom the appointee succeeds. A
vacancy or vacancies shall not impair the right of the remaing members to exercise the
powers of the Commission
4. Quorum. Three members shall constitute aquorum, andthe concurring vote of at least
three members shall be required to take any action.
S. Compensation; Expenses. Members of the commission shall be compensated ... The
members of the Commission shall be reimbursed for ex •rases incurred in the
performance of their official duties.
B. Executive Director and Delceation of Authority.
I . The Commission shall_ appoint and has the authority to discbgW an Executive
Director, who shall act in accordance with Commission policies and regulations and with
applicable law. The Executive Director shall serve at the will, of the Commission„ shalt
not be subject to civil service royisio_ns and shall have no property+intorest in his ar her
employment. The salazy of the Executive Director shall be set by the Council and shall be
based on a recommendation submitted by the city manager after a review and analysis o
the re§pnnsibilities and authority vested in the position. The Executive Director shall not
serve in that gMity For more than ten years.
2. The Commission may delegate authori-!Y to the Executive Director to act on behalf of
the Commission between meeting of the Commission except that rules re ulations and
adjudicatory decisions can only he acted upon by the Commission.
C. Duties and Roppnsihilities afthe Ethics Commission. The Conuniission sh-AL-
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respgnsibUjjy for the impartial and effective administration and implementation of the provisions
of Chapter 2.40 of the MunigipAl Code, The City Ethics Commission shalt have the followinrr
duties and responsibilities:
1._to audit disclosure statements and other releyant„documents and investigate ,alleged
violations of Chapter 2.40 of the Municipal Code and any other Qy ordinances reig n
to limitations on campaign contributions and expenditures, lobbying, governmental -ethics
and conflicts of interest and torepprt the findings to the city attorney and other
qppLoprige enforcement authorities.
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2. to make recommendations to the and the Council concerning campaign_ finance
reform, lob yviMovernmental ethics and conflicts of interest an to re rt to the
Council every three years concerning the effectiveness of these laws;
3. to annually ad
'ust s eci iimits_and thresholds] required by City law to reflept any
increases or decreases in the Consumer Price index. Adjustments shall be rounded off to
the nearest ...
4. prescribe forms for reports statements notices and other dacumcntsre uy fired by the
Charter, ordinances or other laws relating to campaign financing, conflicts of interest,
Lobbyiqg or governmental ethics,•
5. prepare and publish manuals and instructions setting, forth methods of boykkegv.jM
preservation of records to facilitatc compliance with and enforcement of the gbnvc laws,
and explaining applicable duties cPersons-and committees.
6. develop an educationatprqgram consisting of the following comfits:
a. seminars, when deemed appropriate, to fami l iarixe newly elected and appointed
officers and employees, candidates for elective off ce and their c�
treasurers and lobbyists with City, state and federal ethics laws and the
importance of ethics to the public's_ confidence in municipal government.
b. annual seminars for top-level officials including elected officers and
commissioners to reinforce the importance of compjiance with and to inform
them of any changes in the law relating to conflicts of interest and gq3 mmental
ethics.
c. a manual that summarizes, in simple, non-technical lar;guage, camMign„finance
and ethics laws and reporting urcq irements applicable to CiV officers and
employees, instructions for completing re uired forms questions and answers
rem, arding common_ problems and situations and information regarding sources of
assistance in resolvin uestions. The manual shall be updated when necessary to
reflect chanties in applicable Ci y d&deral laws goygrning the ethical
conduct of City em"loyees.
7. to have full charge and control of its office, to be responsible for its proper
administration, to submit annually a pLoposed budget and to ex nd the funds of the
office, all as otherwise prescribed by law, and
B. to receive grants, gifts and appropriations, subject to the approval of the Council;
D. Rules and. Regulations.
1. The Commissiu:i maydapt, amend and rescind rules and regulations, subject to
Council approval without modification, to carry out tlic purposes and provisions of the
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Charter and ordinances of theCity relatigg to camuAip-n finance. conflicts of intertest,
lobbying, and goyyrnmental ethics and to govern procedures of the commission.
2. Within 6d days after a rple or rcalation is ac�ted by the C:ommissionthe Council
shall hold apublic hearing concerning the matter and act to approve or disapprove the
rule gr.regulation in theform approved the Commission by ordinance. Violation of the
rule or regulation shall be subject to those penaj.ties and remedies as ma be provided.
G._Reguests For and issuances of Opinions: Advice.
F Investigations and Enforcement Proceedipa. The Commission shall in collaboration with the
city± attorney= conduct_investigations of allegedviolations of state lam, the Charter and City
ordinances relating to campaign financing, lobbying, and conflicts of interest and govenunental
ethics. Any person who violates any_provision of the Charter or of a City„ ordinance relating to
camNaftin financing, lobhying, conflicts of interest or gqvernmental ethics or_wtp causes any
oilier person to violate any provision, or who aids and abets any_other person in a violation, shall
be liable under the provisions ofthis Article.
1. Investigations.
a, if the Commission, -upon the sworn complaint of ani person or on its own
init iative,_tirA determines that there is sufficient cause to conduct an
investigation, it shali_investigate. in collaboration with the city attorney, alleged
!violations of state law, the Charter or City ordinances relatiu to campaign
financing, lobbying, conflicts of'interest and g vernmental ethics. The
Commission shall not be r aired to investigate a complaint filed with it unless
he: complaint identifies the, specific alle ed violation which forms the basis for
the_complaint and contains sufficient facts to warrant an investigation.
b. 'i'he invest] ation shall. be conducted in a confidential manner. Fccords of any
investiagdon shall be considered confidential information pursuant to Section
t 8362 of Title 2 of the California Code of Regulations as amended or an
successor provision. The unauthorized release of confidential information sjk be
sufficient grounds for the termination of the employee or rgmov_al of the
commissioner responsible for t e release. The termination of clerical cm -Pk yees
only shall be suh'ect to applicable civil service provisions,
c. The Commission: city attorney and any special prosecutor ma,.y subpoena
witnesses ._Com el their attendance and testimony, administer oaths and
affirmations take evidence and re wire b sY tlbyoena the production of anter honks,
papers, records or other items material to theerformance of the commission's
deities or exercise of its powers.
2. Findings of Probable Cause; Administrative Enforcement. If the Executive Director of
the Commission determines that there is probable cause to believe that aprovWgn of the
Charter or City ordinances relating to campaign finweing. lobbying, condi is of interest
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or overnmental ethics has been violate the Executive Director shall cause an
administrative enforcement accusation to be iss d and served. Nofindin of prokble
cause shall be made by the Commission unless at least 21 days prior to the
Commission's consideration of tete alleged. violation, the person alteized to have
committed the violation is notified of the alleged violation b service ofnrocess ar
registered mail with return receipt requested, is provided with a summary of the evidence
and is informed of his or her right to be present in_person and represented by counsel at
M proceeding_ held for the purpose,af considering, whether probable cause exists for d
believing; the person committed the violation. Notice to the alleged violator shall be W
deemed made on the_date of service, the date tate registered mail mcei t is signed, or, if a
the registered mail receipt is not sighed, the date returned by, the post office A
proceeding held for the purpose of consideringprobabie cause shall be private unless the
alleged violator files with the commission a written request that the proceeding be public. `o
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3. Administrative Hearings Orders and Penalties. After an accusation is issued and
served the Commission shall cause a public evidentiary hearing to be held to determine C
if a violation has occurred. When the Commission. determines on the basis of substantialLL
evidence presented at the hearing, that a violation has occurred, it shall issue An
..order t
which may require the violator to: c
a. cease and desist the violation,•
b, fileAny re orts statements or other documents or information r uired by la w• °
and/or
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C. nay a monetary penalty to the General Fund of the City of up to five thousand N
ollars 5 0.00 for each violation or three times the amount that the ggrson Failed
to report pMrly or unlawfully contributed, expended, gAve or received,
whichever is eater. When the Commi ion determines that no violation has c
occurred, it shall publish a declaration so stating.
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4. Referrals Between Agencies. RgIgardless of whether the Executive Director makes a s
formal determination conceming Rmbable cause he or she ma refer the matter to
another appropriate Vency for p_urooses of enforcement. °
G. Legal Services. The city attorney shalt provide legal services to the Commission.
Additionally. the Commission may em loy_or contract for staff counsel to give advice; to the
Cotnrnission and to take such action as the Commission may direct on matters that direct_..y o
involve the conduct of thechy ttn vmey.
H. Judicial Review. Arty interestedpersonma seek Judicial review of an action of the E
Commission. r
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1. Appointment of Special Prosecutor, a
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L When the city attorney determines that his or her office has anossible conflict of
interest and that the office should not investi ate or DrOSeCUte aIle ed violations of the
C'harter,.Ci-ord'nanc s or a ulations or statutes relating,to campaign_f nancing,
lobbying, conflicts of interest or governmental ethics, the city attor ey shall notify the
City Ethics Commission, which by a four-fifths vote of all of its members may request
the appointment of a special prosecutor to conduct the investigation. A special prosecutor
shall not be aRnointed when it appgars from a oreliminary inyesti ation that an alle ed
violation will_warrant only an action for civil damages or administratiye_ alties.
2. The re nest for the appointment of a special rosecutor shall be made to a standin t
committee composed of three retiretlJndges selected by the Commission at the beginning
ofg chi gdd-ngmberedyear. The three_iudge panel shall ntme the snecl_pros_ecu r who
Upon aP ointment shall have the authority to file andrasecnte crimin I and civil actions
in the name of the People.
3. Each fiscal year there shall be included in the budget of the City Ethics Commission
the sum_ of fXXXI L$ X,XXX) for exneriditure. to support anyspecial,.prosecutor
appointcd pursuant to this section. In the event that all these funds have been or are likely
to he ex nded before the end of aLiy fiscal year, the Commission ma ask the Council
for an additional aporo giation. Under no circumstance shall the amount annpronrigted or
provided under contract for a special l prosecutor exceed two hundred rift thousand
dollars 250Ulyd in.aqy fiscal year without Council approval. The Council shall have 30
days Lxcietdinst weekends and holidays) following its receipt to a�cegt,_reject of r modify
a r_ guest for additional funds from the commission.
4. A special prosecutor appointed -pursuant to this section m4y be removedfrom office
only by the action of the Commission,_ and only for good cause., physical, disability,
mental incapacity, or any other condition thgt substantially impairs the performance of
the s ialprosecutor's duties.
I. AonrnpdgUgn. 17ie Council shall appLopriate funds for the Commission at least one year in
advance_vf each subsequent fiscal year.
SECTION 9. That section 2.40.150 (Expiration of provisions) of the San Luis Obispo
Municipal Code is hereby repealed.
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San Luis Obispo Municipal Code
Chapter 2.40 ELECTION CAMPAIGN REGULATIONS*
Chapter 2.40
ELECTION CAMPAIGN REGULATIONS*
Sections:
2.40.010
Title.
2.40.020
Purpose and intent.
2.40.030
Definitions.
2.40.040
Contribution limitations.
2.40.050
Election campaign accounts.
2.40.060
Campaign statements.
2.40.070
Campaign signs.
2.40.080
Responsibilities of city clerk.
2.40.090
Criminal misdemeanor actions.
2.40.100
Civil actions.
2.40.110
Injunctive relief.
2.40.120
Cost of litigation.
2.40.130
Construction of provisions.
2.40.140
Council study committee.
2.40.150
Expiration of provisions.
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*Prior legislation: Prior code §§ 2800-2812, as amended by Ord. 1067 § 1, 1986, Ord. l 191 § 1, 1991, and Ord. 1254 § I, 1994.
2.40.010 Title.
This chapter may be cited as the election campaign regulations of the city. (Ord. 1599 § 2 (part), 2014: Ord. 1538 §
1 (part), 2010: Ord. 1483 § 1 (part), 2005: Ord. 1333 § 1 (part), 1998)
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
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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. (Ord. 1599 § 2 (part), 2014: Ord. 1538 § 1 (part), 2010: Ord. 1483 § 1
(part), 2005: Ord. 1333 § 1 (part), 1998)
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. (Ord. 1599 § 2
(part), 2014: Ord. 1538 § 1 (part), 2010: Ord. 1483 § 1 (part), 2005: Ord. 1407 § 1, 2002; Ord. 1333 § 1 (part), 1998)
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. (Ord. 1599 § 2 (part), 2014: Ord. 1538 § 1 (part), 2010:
Ord. 1483 § 1 (part), 2005: Ord. 1407 § 3, 2002; Ord. 1333 § I (part), 1998. Formerly 2.40.050)
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. (Ord. 1599 § 2 (part), 2014: Ord. 1538 § 1 (part), 2010: Ord.
1483 § 1 (part), 2005: Ord. 1407 §§ 4, 5, 6, 2002; Ord. 1333 § 1 (part), 1998. Formerly 2.40.060)
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 fifty dollars.
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
The San Luis Obispo Municipal Code is current through Ordinance 1627, passed December 15, 2015.
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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. (Ord. 1599 § 2 (part), 2014: Ord. 1538 § 1 (part), 2010: Ord. 1483 § 1 (part),
2005: Ord. 1407 § 7, 2002; Ord. 1333 § 1 (part), 1998. Formerly 2.40.070)
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). (Ord. 1599 § 2 (part), 2014: Ord. 1538 § 1 (part), 2010: Ord. 1483 § 1 (part),
2005: Ord. 1407 § 14, 2002. Formerly 2.40.080)
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. (Ord. 1599
§ 2 (part), 2014: Ord. 1538 § 1 (part), 2010: Ord. 1483 § 1 (part), 2005: Ord. 1407 § 8, 2002; Ord. 1333 § 1
(part), 1998. Formerly 2.40.090)
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. (Ord. 1599 § 2 (part), 2014: Ord. 1538 §
1 (part), 2010: Ord. 1483 § 1 (part), 2005: Ord. 1333 § 1 (part), 1998. Formerly 2.40.100)
2.40.100 Civil actions.
A. Any person who intentionally or negligently violates any provision of this chapter shall be liable in a civil action
brought by the city attorney or by a person residing within the city for an amount not more than three times the
amount of the unlawful contribution or expenditure.
B. If any person files an original city campaign 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
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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. (Ord. 1599 § 2 (part), 2014: Ord. 1538 § 1 (part), 2010: Ord. 1483 § 1 (part), 2005: Ord.
1407 § 9, 2002; Ord. 1333 § I (part), 1998. Formerly 2.40.1 10)
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. (Ord. 1599 § 2 (part), 2014: Ord. 1538 § 1 (part), 2010: Ord. 1483 §
1 (part), 2005: Ord. 1333 § 1 (part), 1998. Formerly 2.40.120)
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. (Ord. 1599 § 2 (part), 2014: Ord. 1538 § 1 (part), 2010: Ord. 1483 § 1 (part), 2005: Ord.
1333 § I (part), 1998. Formerly 2.40.130)
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. (Ord. 1599 § 2 (part), 2014: Ord. 1538 § 1 (part), 2010: Ord. 1483 § 1 (part), 2005:
Ord. 1333 § 1 (part), 1998. Formerly 2.40.150)
2.40.140 Council study committee.
A. Appointment, At least nine months prior to the expiration of this chapter, the council shall appoint a committee of
at least five citizens to study the efficacy of this chapter. The committee shall complete its deliberations and report
its findings to the city council on or before January 31, 2018. (Ord. 1599 § 2 (part), 2014: Ord. 1538 § 1 (part),
2010: Ord. 1483 § 1 (part), 2005: Ord. 1407 § 10, 2002: Ord. 1333 § 1 (part), 1998. Formerly 2.40.160)
2.40.150 Expiration of provisions.
Unless readopted, this chapter shall expire on June 30, 2018. (Ord. 1599 § 2 (part), 2014: Ord. 1538 § 1 (part), 2010:
Ord. 1483 § 1 (part), 2005: Ord. 1407 § 11, 2002: Ord. 1333 § I (part), 1998. Formerly 2.40.170)
The San Luis Obispo Municipal Code is current through Ordinance 1627, passed December 15, 2015,
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