Chapter 5.12
FAIR ELECTION PRACTICES
Sections:
5.12.010 Campaign material published or distributed.
5.12.020 Campaign contributions and expenditures.
5.12.021 Use of contributed amounts for certain purposes.
5.12.022 Campaign finance reports.
5.12.030 Surplus campaign funds, dispositions, and reports.
5.12.040 Financial disclosure statements.
5.12.010 Campaign material published or distributed.
A. Unless otherwise stated in this chapter, each item of campaign material shall contain, set apart from any other message, an authority line that states the name and title of the candidate, political committee, person, treasurer, or campaign manager responsible for the publication or distribution of the same.
B. The name, title, and address of the person or political committee responsible for publication or distribution of campaign material described in this section shall be on file with the City Clerk.
C. With respect to campaign material utilizing electronic media, compliance with subsection (A) of this section is achieved if the display page or information or opinion contains an internet address of the candidate or political committee responsible for the publication or distribution and allows the receiver of the display page or information or opinion to click on the internet address or hyperlink address and be taken to a landing or home page that prominently displays the authority line information.
D. Repealed by Ord. 2022-30.
E. Any material that is published or distributed by any candidate or political committee in support of or in opposition to a campaign without being directly or indirectly authorized by the campaign should include the following statement:
This message has been authorized and paid for by (name of payer or any organization affiliated with the payer). This message has not been authorized or approved by any candidate or campaign.
F. Campaign signs for City elections shall only be displayed in compliance with applicable Federal, State, and local laws.
G. A violation of this section is a Class B offense. (Ord. 2022-30 § 1, 2022/Ord. 2020-7, 2020/Ord. 2015-28, 2015/prior code § 4D-6)
5.12.020 Campaign contributions and expenditures.
A. Except as provided in subsection (B) of this section, no person shall make contributions, either directly or indirectly, including in-kind contributions, to any candidate or political committee with respect to any election for City office which, in the aggregate, exceed $1,000.00 during a single election cycle.
B. Contributions made by a candidate from their personal funds, or from assets jointly owned with their spouse or domestic partner, are not subject to any limits on the amount contributed.
C. For purposes of this section:
1. Contributions to a named candidate or political committee made to any person authorized by such candidate or political committee to accept contributions on the candidate’s or political committee’s behalf shall be considered to be contributions made to such candidate or political committee;
2. Expenditures made by any person in cooperation, consultation, or concert with, or at the request or suggestion of, a candidate, political committee, or their agents shall be considered to be a contribution to such candidate or political committee; and
3. All contributions made by a person, either directly or indirectly, on behalf of a particular candidate or political committee, including contributions which are in any way earmarked or otherwise directed through an intermediary or conduit to said candidate or political committee, shall be treated as contributions from such person to said candidate or political committee, and the intermediary or conduit shall report the original source and the amount contributed to said candidate or political committee.
D. No candidate or political committee shall knowingly accept or solicit a contribution from:
1. An anonymous contributor;
2. A corporation, including labor unions and political committees;
3. A person making a contribution in the name of another; or
4. A foreign national, which includes:
a. A person outside of the United States who is not a citizen of the United States;
b. An individual within the United States who is not a citizen of the United States and who is not lawfully admitted for permanent residence;
c. A government of a foreign country;
d. A political party of a foreign country;
e. Any partnership, association, corporation, organization, or other combination of persons organized under the laws of, or having its principal place of business in, a foreign country; or
f. Any other foreign person that is prohibited from making contributions by Federal law, including 52 U.S.C. § 30121 and 11 C.F.R. § 110.20, which may be amended from time to time.
E. If a candidate receives an anonymous contribution, the amount shall be declared in campaign reports and contributed to the City’s general fund no later than 4:00 p.m. on the Monday following the election.
F. An expenditure is made on behalf of a candidate or political committee if it is made by:
1. Any other agent of the candidate for purposes of making any expenditure; or
2. Any person authorized or requested by the candidate or an agent of the candidate to make the expenditure.
G. A candidate may make unlimited expenditures from the candidate’s personal funds, or from assets jointly owned with their spouse or domestic partner.
H. No candidate or political committee shall knowingly accept any contribution or make any expenditure in violation of the provisions of this section. No officer, agent or employee of a candidate or political committee shall knowingly accept a contribution made for the benefit or use of a candidate or political committee, or knowingly make any expenditure on behalf of a candidate or political committee, in violation of any limitation imposed on contributions and expenditures under this section.
I. A violation of this section is a Class B offense. (Ord. 2022-30 § 1, 2022/Ord. 2020-7, 2020/Ord. 2015-28, 2015/prior code § 4D-7)
5.12.021 Use of contributed amounts for certain purposes.
A. A contribution accepted by a candidate and any other donation received by an individual as support for activities of the holder of City office may be used by the candidate or individual as follows:
1. For otherwise authorized expenditures in connection with the candidate’s campaign for City office;
2. For ordinary and necessary expenses incurred in connection with duties of the individual as a holder of City office;
3. For donations to an organization that is classified as a 501(c)(3) nonprofit organization under 26 U.S.C § 501, or to an organization which has received City grant funding within the last two years;
4. For transfer to another authorized political committee for the purpose of nominating or electing said candidate to any local, State, or Federal office; or
5. For any other lawful purpose unless prohibited by any subsection of this section.
B. A contribution or donation described in subsection (A) of this section shall not be converted by any person to personal use.
C. For the purposes of subsection (B) of this section, a contribution shall be considered to be converted to personal use if the contribution or amount is used to fulfill any commitment, obligation, or expense of a person that would exist irrespective of the candidate’s election campaign or individual’s duties as a holder of City office.
D. A contribution shall not be transferred from a candidate’s campaign account to another candidate or to another national, State, or local committee of a political party.
E. A violation of this section is a Class B offense. (Ord. 2022-30 § 1, 2022/Ord. 2020-7, 2020)
5.12.022 Campaign finance reports.
A. Each candidate or their authorized representative and each authorized representative of any political committee shall file reports with the City Clerk disclosing all contributions and all disbursements in accordance with this section.
B. Each candidate and political committee, or the authorized representative of each candidate or political committee, shall file the following reports:
1. A post-nomination report, which shall be filed no later than 4:00 p.m. on the second Monday after the City nominating caucus;
2. A first pre-election report, which shall be filed no later than 4:00 p.m. on the fourth Monday preceding election day;
3. A post-election report, which shall be filed no later than 4:00 p.m. on the third Monday following the election;
4. An annual report, which shall be filed no later than January 31st of each year, on the retention or disposition of surplus campaign funds until all such funds are used or distributed; and
5. The post-nomination report shall include all information required to be reported by this section from the date of the preceding election or the most recent annual report, if applicable, up to and including the full day before the filing of the post-nomination report. All other reports shall include information starting from the full day that the previous report was filed up to and including the full day before the filing of the current report.
C. Each report under this section shall disclose:
1. The amount of cash on hand at the beginning of the reporting period;
2. The total amount of all contributions for the reporting period and the election cycle;
3. The identification of each person who makes a contribution to the candidate during the reporting period;
4. The amount contributed by each person who makes a contribution to the candidate during the reporting period;
5. The total amount of all disbursements, including all expenditures, for the reporting period and the election cycle;
6. The name and address of each person to whom a disbursement or expenditure in an aggregate amount or value in excess of $50.00 within the election cycle is made by the reporting candidate, together with the date, amount, and nature or purpose of such operating expenditure; and
7. The date, location, and nature of any safe harbor events and a certification by the candidate that all reported safe harbor events comply with the City’s election code.
D. All campaign reports shall be made on the forms designated by the City Clerk. The campaign reports shall contain a certification by the candidate or authorized representative of the candidate that the contents of the report are true and complete to the best of the certifying person’s knowledge, information, and belief.
E. There is a late filing fee for each campaign report which is not filed within the time prescribed in this section. The fee is $10.00 for each day or part of a day, excluding Saturdays, Sundays and holidays, that a report is overdue. The maximum late fee payable with respect to any single report is $250.00.
1. The City Clerk shall receive an overdue campaign report even if any late filing fee has not been paid, but the report shall not be considered officially filed until all fees have been paid.
2. Upon receipt by the City Clerk of an overdue campaign report, no further late filing fees shall be incurred, notwithstanding the fact that the report is not considered officially filed.
3. It is the personal responsibility of the candidate or of the authorized representative of a political committee to file all reports in complete and accurate detail and to pay all late filing fees. A late filing fee shall not be paid, directly or indirectly, from contributions to the candidate or political committee.
F. A campaign report must be attested to as complete and accurate to be deemed “filed.” If there is a material or significant deficiency in a campaign report, the City Clerk shall notify the candidate or political committee, in writing, of the deficiency. The candidate or political committee shall file a corrected report within two weeks from the date of that notice. If a corrected report is not filed within two weeks or if a corrected report is not attested to as complete and accurate, then daily late filing fees will be assessed.
G. If the City Clerk determines that there is a material or significant deficiency in a corrected report, then the candidate or political committee must continue to correct and resubmit the campaign report to the City Clerk until such campaign report is accepted. In such case, daily late filing fees will continue to be assessed.
H. A person shall not receive any salary or benefits from the office of the Mayor or Councilmember until all required campaign reports have been attested to as complete and accurate, accepted as filed, and all late filing fees have been paid.
I. All campaign reports filed, and all notifications of deficiencies and late filing fees, shall be available for public review during the normal office hours of the City Clerk.
J. A violation of this section is a Class B offense. (Ord. 2022-30 § 1, 2022/Ord. 2020-20 (part), 2020/Ord. 2020-7, 2020)
5.12.030 Surplus campaign funds, dispositions, and reports.
A. Surplus campaign funds may be retained after an election and used by the candidate to support that same candidate’s election or reelection to any City office or any other elected office.
B. Surplus campaign funds of a candidate or political committee, which are not retained in accordance with this section, shall be disposed of in accordance with subsection (C) of this section.
C. A candidate or political committee may dispose of surplus campaign funds by:
1. Returning the funds, pro rata, to the contributors; or
2. Donating the funds to the City’s general fund; or
3. Donating the funds to an organization that is classified as a 501(c)(3) nonprofit organization under 26 U.S.C § 501 or to an organization which has received City grant funding within the last two years. In the event a candidate determines to donate surplus funds to an organization meeting the criteria in Section 5.12.021(A)(3), preference for the donation should be given to an organization providing services in the City of Takoma Park or to an organization providing services in the City of Takoma Park metropolitan area.
D. Prohibited uses of surplus campaign funds include:
1. The personal use of the candidate, the treasurer or any member of the candidate’s or political committee’s staff, or the immediate family members of those individuals (however, use of surplus funds to hold a party for campaign supporters is a permitted political purpose); or
2. A transfer to a political committee or a candidate other than the political committee or candidate for whom the funds were raised.
E. A candidate or political committee, or any individual who previously was a candidate and has retained surplus campaign funds, shall report annually, no later than January 31st, on the retention or disposition of surplus campaign funds until all such funds are depleted.
F. A violation of this section is a Class B offense. (Ord. 2022-30 § 1, 2022/Ord. 2020-7, 2020/Ord. 2015-28, 2015/prior code § 4D-8)
5.12.040 Financial disclosure statements.
A. Candidates shall have timely filed financial disclosure statements in proper form as required by Section 3.04.080 to be eligible to assume office.
B. If a candidate elected to a position is unable to serve as a result of failing to file a financial disclosure statement as required by Section 3.04.080, then the Clerk shall declare the position to be vacant in accordance with Section 301(b) of the Takoma Park Municipal Charter. (Ord. 2022-30 § 1, 2022/Ord. 2020-7, 2020/Ord. 2015-28, 2015)