Discussion of Campaign Finance Recommendations From the Final Report of the

Discussion of Campaign Finance Recommendations From the Final Report of the Task Force on Ethics & Campaign Finance Reform Presented by Thomas B. Drage, Jr. County Attorney

Discussion Outline • Introduction • Task Force recommendations • Legal issues/other jurisdictions • Implementation options • Board direction

Introduction The Task Force on Ethics and Campaign Finance Reform met from March to November of 2007. The Task Force presented its Final Report to the BCC on January 29, 2008. 20 recommendations are contained in the Final Report -- -- 16 recommendations on ethics -- 4 recommendations on campaign finance

Introduction On January 29 the BCC requested the County Attorney evaluate the campaign finance recommendations for BCC discussion prior to the start of the 2008 Florida Legislative session. The first day of Legislative session is Monday March 4, 2008. House bill drafting deadline was January 25, 2008.

TF Recommendation #1 – moving up dates. The County seek legislation to require local campaign finance reports be filed six days prior to an election. The County seek legislation to ban local acceptance of contributions seven days before the election. Recommendations

TF Recommendation #2 – requiring electronic reports. The County require that campaign finance reports of candidates for Mayor and the BCC be filed electronically with the Orange County Supervisor of Elections and be accessible on the Supervisor’s web site. Recommendations

TF Recommendation #3 – requiring corporate disclosure when contributing to campaigns. The County require disclosure by the contributor and candidate of greater than 25% ownership interest when a contribution is made to a candidate for Mayor or BCC by someone other than a natural person (e.g., corporation, LLC, limited partnership). Recommendations

TF Recommendation #4 – contribution ban during black out period. The County bar candidates for Mayor and County Commission from accepting contributions from any person who has a bid or proposal pending in response to such a solicitation by the County. Recommendations

Legal Issues/Other Jurisdictions State Law – A recent Court of Appeal held that the Florida Election Code impliedly preempts County authority to regulate in this area of law. Browning v. Sarasota Alliance for Fair Elections, 968 So.2d 637 (Fla. 2nd DCA 2007) See chapters 97-106, Florida Statutes

Legal Issues/Other Jurisdictions Miami-Dade – A Constitutional Charter County 1996 – Ethics Commission created by Charter amendment. 1998 – BCC adopted ordinance establishing a local ban on corporate contributions. 2000 – BCC adopted ordinance establishing a cap on contributions (at $250). 2005 – BCC repealed corporate ban and contribution restrictions as a matter of policy.

Legal Issues/Other Jurisdictions Sarasota County – Home Rule Approach 1990 – voters passed a charter amendment giving BCC authority to limit contribution amount and provide for reduced contribution amounts. 1991– BCC adopted an ordinance to implement these provisions.

Legal Issues/Other Jurisdictions Sarasota County – Home Rule Approach 1998 -- Sarasota ordinance challenged. 1999 – 12th circuit court ruled the ordinance unconstitutional except as to contribution limitations. Ciaravella v. Board of County Commissioners, Case No. 99-420-1 CA (Fla. 12th Cir. Ct., Sept. 10, 1999).

Legal Issues/Other Jurisdictions Sarasota County – recent case Sarasota Alliance for Fair Elections (SAFE) sponsored successful charter amendment setting forth detailed election requirements. Aug. 2006 – BCC filed a declaratory judgment action Sept. 2006 - trial court ordered question to be placed on the ballot. Nov. 2006 – electorate approved the proposed amendment. Browning v. Sarasota Alliance for Fair Elections, 968 So.2d 637 (Fla. 2nd DCA 2007)

Legal Issues/Other Jurisdictions Sarasota County – recent case Oct. 2007 – Second DCA held the language of the amendment to be contradictory to the express provisions of law and to be impliedly preempted by the pervasiveness of the Florida Election Code. Case has been accepted for review by the Florida Supreme Court. Browning v. Sarasota Alliance for Fair Elections, 968 So.2d 637 (Fla. 2nd DCA 2007)

Legal Issues/Other Jurisdictions Alachua County -- Special Act Approach 2001 - BCC appointed a Campaign Finance Reform Advisory Board. 2002- County obtained a Special Act to implement campaign finance changes locally. 2004 – voters adopted a Charter Amendment providing for earlier reporting requirements, electronic reporting, and reduced campaign contribution amounts.

Legal Issues/Other Jurisdictions Requirements for a Special Act – • Separately filed bill requires: • 30 days notice or • approval by a vote of the electors. Art. III, s. 10, Fla. Const. Section 11.02, F.S.

Implementation Options • Amend County Code • applicable only to County Commission candidates • Special Act • applicable only to County Commission candidates • Special Act with Charter Amendment • applicable only to County Commission and municipal candidates • Amend General Law • applicable statewide

Recommendation #1 -- Moving up dates. Dates specified in current law -- Local candidates file a final report four days prior to the election date. Local candidates return contributions when received less than five days prior to the election date. Implementation Options

Implementation Options Recommendation 1 – Moving up dates.

Recommendation #2 – Requiring electronic reports. Florida law currently requires campaign finance reports of local (County) candidates be filed with the Orange County Supervisor of Elections. Chapter 106 does not specify the format in which the local reports must be filed. Currently in Orange County some local candidate’s reports are filed in hard copy but most are filed electronically. Implementation Options

Implementation Options Recommendation 2 – Requiring electronic reports.

Recommendation #3 – Requiring corporate disclosure when contributing to campaigns. “Person” is defined in Florida Statutes to include corporations and limited liability corporations. Chapters 607 and 617, FS, limit the disclosure of corporate ownership beyond recognized corporate purposes. Chapter 608, FS, allows manager of a limited liability company discretion to keep confidential any information about the LLC which the manager believes should not be released or which by law or agreement cannot be released. Implementation Options

Implementation Options Recommendation 3 – Requiring corporate disclosure when contributing to campaigns.

Recommendation #4 –Contributions ban during black out period. County Code currently has a black out period for contact while a bid or proposal is pending. Amending County Code to disallow contributions during this pending period will place the responsibility on the contributor and not on the candidate. Implementation Options

Implementation Options Recommendation 4 – Contribution ban during black out period.

Board Direction Recommendation 1 – Moving up dates.

Board Direction Recommendation 2 – Requiring electronic reports.

Board Direction Recommendation 3 – Requiring corporate disclosure when contribution is made.

Board Direction Recommendation 4 – Contribution ban during black out period.

Discussion of Campaign Finance Recommendations From the Final Report of the Task Force on Ethics & Campaign Finance Reform Presented by Thomas B. Drage, Jr. County Attorney

Legal Issues/Other Jurisdictions Constitutional limitations on a Special Act – “There shall be no special law or general law of local application pertaining to: election, jurisdiction or duties of officers, except officers of municipalities, chartered counties, special districts or local governmental agencies;” Art. III, s. 11(a)(1), Fla. Const.

Discussion of Campaign Finance Recommendations From the Final Report of the