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HomeMy WebLinkAbout10602ORDINANCE NO. 10602 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PUEBLO, COLORADO, AMENDING CHAPTER 2 TITLE V OF THE PUEBLO MUNICIPAL CODE, REGARDING CAMPAIGN EXPENDITURES AND DISCLOSURES BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: (brackets indicate matter being deleted, underscoring indicates new matter being added) SECTION 1. Section 1 of Chapter 2 of Title V of the Pueblo Municipal Code is hereby deleted and replaced as follows: Sec. 5-2-1. \[Compliance with fair campaign practices act required.\] Adoption (a) \[Every candidate for any city office in the City, and every candidate committee, issue committee and political committee supporting or opposing any candidate for any city office of the City or supporting or opposing any City initiative, referendum or other ballot issue, shall comply with the requirements of the Fair Campaign Practices Act. Section 1-45-101, et seq., C.R.S., as currently enacted and subsequently amended. (b) Every such candidate, candidate committee, issue committee and political committee shall timely file with the City Clerk the registration statements, disclosures and reports required by the Fair Campaign Practices Act on forms approved for such use by the Colorado Secretary of State. (c) It shall be unlawful and a Class 1 municipal offense for any person to violate any provision of this Section or the Fair Campaign Practices Act with respect to any election for any City office of the City, or with respect to any City initiative, referendum or other ballot issue. (d) The City Clerk shall impose an additional late charge of ten dollars ($10.00) per day for each day that a statement, report or other information required to be filed by this Section or the Fair Campaign Practices Act is not filed. For purposes of this Subsection (d), the date of filing shall be the date of the postmark if the statement, report or other information is mailed.\] Except as explicitly modified herein, or modified hereafter by ordinance, City elections shall be governed by the Colorado Fair Campaign Practices Act, 1-45-101, et seq., C.R.S. as now existing or hereafter amended or modified. Sec. 5-2-2. Applicability (a) Every candidate for any city office in the City, and every candidate committee, issue committee and political committee supporting or opposing any candidate for any city office of the City or supporting or opposing any City initiative, referendum or other ballot issue, shall comply with the requirements of this Section as currently enacted and subsequently amended. (b) Every such candidate, candidate committee, issue committee and political committee shall timely file with the City Clerk the registration statements, disclosures, and reports required by this Chapter on forms approved for such use by the City Clerk. (c) It shall be unlawful and a Class 1 municipal offense for any person to violate any provision of this Section with respect to any election for any City office of the City, or with respect to any City initiative, referendum or other ballot issue. (d) The City Clerk shall impose an additional late charge of ten dollars ($10.00) per day for each day that a statement, report, or other information required to be filed by this Section is not filed. For purposes of this Subsection (d), the date of filing shall be the date of the postmark if the statement, report or other information is mailed. Sec. 5-2-3. Contribution Limits (a) Nothing herein in shall be construed to prohibit a corporation or labor organization from making a contribution to a political committee. (b) There shall be no maximum amount of aggregate contributions that any person, including a political party, small donor committee, corporation, or labor organization, may make to a candidate committee of a candidate for a municipal office, and that a candidate committee for such candidate may accept for any one such person per election. (c) Notwithstanding any other provision of this subsection, no limited liability company shall make any contribution to a candidate committee or political party if either the limited liability company has elected to be treated as a corporation by the internal revenue service pursuant to 26 C.F.R. § 301.7701-3 or any successor provision or the shares of the limited liability company are publicly traded. A contribution by a limited liability company with a single natural person member that does not elect to be treated as a corporation by the internal revenue service pursuant to 26 C.F.R. § 301.7701-3 shall be attributed only to the single natural person member. (d)(1) Any limited liability company that is authorized to make a contribution shall, in writing, affirm to the candidate committee, political committee, or political party to which it has made a contribution, as applicable, that it is authorized to make a contribution, which affirmation shall also state the names and addresses of all of the individual members of the limited liability company. No candidate committee, political committee, or political party shall accept a contribution from a limited liability company unless the written affirmation satisfying the requirements of this paragraph (d) is provided before the contribution is deposited by the candidate committee, political committee, or political party. The candidate committee, political committee, or political party receiving the contribution shall retain the written affirmation for not less than one year following the date of the end of the election cycle during which the contribution is received. (2) Any contribution by a limited liability company, and the aggregate amount of contributions from multiple limited liability companies attributed to a single member of any such company under this subsection 2, shall be subject to the limits governing such contributions under this Chapter of Title V of this Code. A limited liability company that makes any contribution to a candidate committee, political committee, or political party shall, at the time it makes the contribution, provide information to the recipient committee or political party as to the amount of the total contribution attributed to each member of the limited liability company. The attribution shall reflect the capital each member of the limited liability company has invested in the company relative to the total amount of capital invested in the company as of the date the company makes the campaign contribution, and for a single member limited liability company, the contribution shall be attributed to that single member. The limited liability company shall then deduct the amount of the contribution attributed to each of its members from the aggregate contribution limit applicable to multiple limited liability companies under this subparagraph (2) for purposes of ensuring that the aggregate amount of contributions from multiple limited liability companies attributed to a single member does not exceed the contribution limits under this Chapter of Title V of this Code. Nothing in this subparagraph (2) shall be construed to restrict a natural person from making a contribution in his or her own name to any committee or political party to the extent authorized by law. (e) As used in this section, “limited liability company” has the same meaning as “domestic limited liability company” as defined in section 7-90-102(15) C.R.S. or “foreign limited liability company” as defined in section 7-90-102(24) C.R.S. as amended. Sec. 5-2-4. Disclosures (a) All candidate committees, political committees, issue committees, small donor committees, and political parties shall report to the City Clerk their contributions received, including the name and address of each person who has contributed twenty dollars or more,  expenditures made, and obligations entered into by the committee or party. (1) In the case of contributions made to a candidate committee, political committee, issue committee, and political party, the disclosure required by this section shall also include the occupation and employer of each person who has made a contribution of one hundred dollars or more to such committee or party. (2) Any person who expends one thousand dollars or more per calendar year on electioneering communications shall report to the City Clerk, in accordance with the disclosure required by this section, the amount expended on the communications and the name and address of any person that contributes more than two hundred fifty dollars per year to the person expending one thousand dollars or more on the communications. If the person making a contribution of more than two hundred fifty dollars is a natural person, the disclosure required by this section must also include the person’s occupation and employer. Electioneering communication reports must include the name of the candidate or candidates unambiguously referred to in the electioneering communication or regular biennial school electioneering communication. In accordance with section 1-45-103 (9) C.R.S., an electioneering communication includes any communication that satisfies all other requirements set forth in section 2 (7) of article XXVIII of the state constitution but that is broadcast, printed, mailed, delivered, or distributed between the primary election and the general election. (3) In the case of a limited liability company, the disclosure required by this section shall include, in addition to any other information required to be disclosed, each contribution from the limited liability company regardless of the dollar amount of the contribution. (4) Any disbursement not otherwise defined as an expenditure may be reported to the City Clerk. (b) A candidate's candidate committee may reimburse the candidate for expenditures the candidate has made on behalf of the candidate committee. Any such expenditures may be reimbursed at any time. Notwithstanding any other provision of law, any expenditure reimbursed to the candidate by the candidate's candidate committee within the election cycle during which the expenditure is made shall be treated only as an expenditure and not as a contribution to and an expenditure by the candidate's candidate committee. Notwithstanding the date on which any such expenditure is reimbursed, the expenditure shall be reported at the time it is made in accordance with the requirements of this section. Sec. 5-2-5. Reports. (a) Reports that are required to be filed with the City Clerk must be filed: (1) On the twenty-first day and on the Friday before and thirty days after the primary election, where applicable, and the major election in election years, and annually in off-election years on the first day of the month in which the anniversary of the major election occurs; except that, for a runoff election reports must be filed no later than fifteen days before and fifteen days after the runoff election. (2) For purposes of this section, “election year” means every odd- numbered year for political parties and political committees and each year in which the particular candidate committee's candidate, or issue committee's issue, appears on the ballot;  and “major election” means the election that decides an issue committee's issue, or the election that elects a person to the public office sought by the candidate or committee's candidate. (b) The City Clerk shall keep a copy of any report or statement required by this chapter for a period of one year from the date of filing. In the case of candidates who were elected, those candidate’s reports and filing shall be kept for one year after the candidate leaves office. (c) If the reporting day falls on a weekend or legal holiday, the report shall be filed by the close of the next business day. (c) The reports required by this section shall also include the balance of funds at the beginning of the reporting period, the total of contributions received, the total of expenditures made during the reporting period, and the name and address of the financial institution used by the committee or party. (d) The reporting period for all reports required to be filed with the City Clerk shall close five calendar days prior to the effective date of filing. (f) Except as provided in subsection (1) of this section, and in addition to any report required to be filed with the City Clerk under this section, all candidate committees, issue committees, and political parties must file a report with the City Clerk of any contribution of one thousand dollars or more at any time within thirty days preceding the date of the primary election, general election, or run off election. This report shall be filed with the City Clerk no later than seventy-two hours after receipt of said contribution. (1) Notwithstanding the provisions of subsection (f) of this section, the following committees need not file the reports described in subsection (f) of this section in the following instances: (i) An issue committee need not report a contribution of one thousand dollars or more preceding a primary election; and (ii) A committee for a candidate not on the ballot need not report a contribution of one thousand dollars or more during the off- election year. Sec. 5-2-6. Enforcement. (a) Any person who believes that a violation of this Chapter has occurred may file a written complaint with the City Clerk in accordance with section 5-2-6.1 of this Code. (b) For those complaints that concern a criminal violation pursuant to section 5-2-2 of this code, if the City Attorney determines that no probable cause exists, that the complaint fails to allege an enforceable violation, or that the requirements of section 5-2-6-1 were not met by the complainant, the City Attorney shall so notify the City Clerk, who will, in turn, notify the complainant and respondent in writing. (c) If the City Attorney determines probable cause exists, the City Attorney may notify the Pueblo Police Department, who, in consultation with the City Attorney, may file and serve a summons and complaint to the respondent. (d) The City Attorney retains prosecutorial discretion on whether to ultimately file criminal charges. If the City Attorney determines filing a summons and complaint is inappropriate, he or she shall so notify the City Clerk, who will, in turn, notify the complainant and respondent in writing. (e) Notwithstanding the above, nothing in this section shall be read to preclude the City Attorney from declaring a conflict of interest, and taking appropriate action in accordance with this Code and general practices of the City, including, but not limited to, hiring special counsel, if deemed necessary and advisable under the circumstances. (f) Nothing in this section shall preclude the City from pursuing an action, civil or criminal, against any person, candidate, candidate committee, issue committee, small-scale issue committee or political committee for any violation of this Chapter, regardless of whether a complaint had been filed pursuant to this section. (g) The Mayor in consultation with the City Attorney is hereby authorized to adopt administrative regulations consistent with the provisions of this Chapter. Sec. 5-2-6.1 Allegation of Campaign Violation. (a) Any candidate or registered elector of the City ("complainant") who has reason to believe a violation of Title V, of this Code, has occurred by any person, candidate, candidate committee, issue committee, small-scale issue committee or political committee may file a written complaint with the City Clerk, no later than thirty days after the alleged violation has occurred. (b) The complaint must contain: (1) The name of the alleged violator; (2) The Code provision allegedly violated; (3) A brief statement or description of the offense allegedly committed and the basis for the allegation; (4) Identification of any relevant documents or other evidence; (5) Identification of any witnesses or persons with relevant knowledge; and (6) The name, address and telephone number of the complainant. (c) For complaints that allege a criminal violation as set forth in section 5-2- 2, the City Clerk will forward the complaint to the respondent and to the City Attorney, who will evaluate the complaint for probable cause as provided for in section 5-2-6. (d) For complaints that do not allege a criminal violation, the complaints shall be subject to a civil infraction process as provided herein: (1) The City Clerk will forward the complaint to the respondent by electronic mail, notifying the respondent that the alleged violation may be subject to a civil infraction. (2) The City Clerk will forward the complaint to the City Attorney, who shall review the complaint to determine whether the complaint: (A) Was timely filed under hereunder; (B) Contains the information required hereunder; and (C) Alleges sufficient facts to support a factual and legal basis for the violations alleged. (3) If the City Attorney determines that the complaint fails to satisfy any of the three (3) elements in the immediately preceding Subsection (2), the City Attorney shall so notify the City Clerk who will, in turn, notify the complainant and respondent in writing. (4) If the City Attorney determines that the complaint satisfies the three (3) elements in the immediately preceding Subsection (2), the City Attorney shall notify the City Clerk who will, in turn, notify the respondent in writing of the presumptive penalty in accordance with section 5-2-2 and that the respondent shall have seven days from the date of the notice to submit written evidence of its cure or diligent efforts to cure the violation, including any amendments to any applicable report containing one or more deficiencies, modified campaign materials, or other proof that the violation has been corrected. The respondent's written response shall be due to the City Clerk no later than 5:00 p.m. on the tenth day. In the event the tenth day is a weekend or City holiday, the response shall be due no later than 5:00 p.m. the next business day. (5) On receipt of the respondent's written response, the City Attorney may, through the City Clerk, ask the respondent to provide more information and may grant the respondent an extension of time of up to seven additional days to file an amended response regarding cure in order to respond to any such request. (6) After the period for cure has expired, the City Attorney shall determine whether the respondent has cured any violation alleged in the complaint and, if so, whether respondent has substantially complied with its legal obligations under Title V, Chapter 2, of this Code. In determining whether the respondent has substantially complied with its legal obligations, the City Attorney shall consider: (A) The extent of the respondent's noncompliance; (B) The purpose of the provision violated and whether that purpose was substantially achieved despite the noncompliance; and (C) Whether the noncompliance may properly be viewed as a knowing attempt to mislead the electorate or election officials. If the City Attorney determines the respondent has cured any violation or otherwise substantially complied with its legal obligations under Chapter 7, Article 5, the City Attorney shall so notify the City Clerk who, in turn, shall notify the complainant and the respondent and no penalty shall apply for the corresponding alleged violation or violations, as applicable. (7) If the City Attorney determines the respondent has not cured the alleged violation or otherwise substantially complied with its legal obligations, the City Attorney may conduct additional review or investigation of the allegations of the complaint to determine whether to file a complaint with the Municipal Court. (8) If the City Attorney files a complaint with the Municipal Court, the matter shall be governed by Title 1, Chapter 6 of this Code. (9) A complainant or any other nonrespondent shall not be a party to the City Attorney's initial review, cure proceedings, investigation, or any proceeding in the Municipal Court. A complainant may request permission from the Municipal Judge or their designee to file an amicus curiae brief. (10) Any person that commits a violation of this Title shall be personally liable for the penalties imposed. Any candidate shall be personally liable for penalties imposed upon the candidate or the candidate's committee and may use campaign contributions to pay penalties. SECTION 2. The officers and staff of the City are authorized and directed to take all action necessary, appropriate or required to implement the provisions of this Ordinance. SECTION 3. This Ordinance shall become effective on the date of final action by the Mayor and City Council.Action by City Council: Introduced and initial adoption of Ordinance by City Council on November 13, 2023. Final adoption of Ordinance by City Council on November 27, 2023. ____________________________ President of City Council Action by the Mayor: ☒ Approved on November 29, 2023 . ☐ Disapproved on ______________ based on the following objections: ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ____________________________ Mayor Action by City Council After Disapproval by the Mayor: ☐ Council did not act to override the Mayor's veto. ☐ Ordinance re-adopted on a vote of ____________, on _____________ ☐ Council action on _______ failed to override the Mayor’s veto. ____________________________ President of City Council ATTEST ________________________________ City Clerk City Clerk's Office Item # R14 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: November 27, 2023 TO: President Heather Graham and Members of City Council CC: Mayor Nicholas A. Gradisar VIA: Marisa Stoller, City Clerk FROM: Marisa Stoller, City Clerk SUBJECT: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PUEBLO, COLORADO, AMENDING CHAPTER 2 TITLE V OF THE PUEBLO MUNICIPAL CODE, REGARDING CAMPAIGN EXPENDITURES AND DISCLOSURES SUMMARY: The following ordinance updates and amends the campaign finance code to keep the current regulations laid out by the state. PREVIOUS COUNCIL ACTION: None. BACKGROUND: In the 2023 legislative session, the state made significant changes to the Campaign Finance Code. These changes were lobbied against by CML and CMCA, but successfully passed and are expected to go into effect on January 1, 2024. Homerule municipalities are able to opt out of the updates by incorporating the current rules into their code, and this ordinance codifies the current rules. FINANCIAL IMPLICATIONS: Not applicable to this Ordinance. BOARD/COMMISSION RECOMMENDATION: Not applicable to this Ordinance. STAKEHOLDER PROCESS: Not applicable to this Ordinance. ALTERNATIVES: The City Council can choose not to approve the ordinance, which would allow the state changes to go into effect in Pueblo. RECOMMENDATION: Passage of the Ordinance. ATTACHMENTS: 1. Ordinance