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LTC 001-2017 New Requirements for Contribution Solicitations for PCs and ECOsMIAMI RFA CH OFFICE OF THE CITY MANAGER LTC No. 001-2017 LETTER TO COMMISSION TO: Mayor Philip Levine and Members of the City Commission I f FROM: Rafael E. Granado, City Clerk DATE: January 5, 2017 SUBJECT: NEW REQUIREMENTS FOR REPORTING OF SOLICITATION OF CONTRIBUTIONS FOR POLITICAL COMMITTEES, ELECTIONEERING COMMUNICATIONS ORGANIZATIONS, 501(c)(4) ORGANIZATIONS AND POLITICAL PARTIES BY MUNICIPAL ELECTED OFFICERS AND MUNICIPAL CANDIDATES. In accordance with Miami -Dade County Ordinances No. 16-46 and 16-75, codified in Sections 12-14.2 and 12-14.2.1 of the Code of Miami -Dade County, Florida, respectively, municipal elected officers and municipal candidates must file attached form MD -ED 28 to publicly disclose their fundraising activities for Political Committees, Electioneering Communications Organizations, organizations exempt under Section 501(c)(4) of the Internal Revenue Code (except for homeowners associations) or Political Parties. Municipal Elected Officers Reporting Requirements Effective January 1, 2017, upon commencement of any solicitation activities undertaken on behalf of any Political Committee, Electioneering Communications Organization, 501(c)(4) Organization or Political Party, each municipal elected officer in Miami -Dade County who is not also a candidate for another County or municipal office shall, within five (5) days of commencing solicitation activities, either directly or indirectly, on behalf of a Political Committee, Electioneering Communications Organization, 501(c)(4) Organization or Political Party, file a one-time report with the City Clerk indicating that the municipal elected officer is undertaking solicitation activities on behalf of such Political Committee, Electioneering Communications Organization, 501(c)(4) Organization or Political Party. The report shall identify the name of the Political Committee, Electioneering Communications Organization, 501(c)(4) Organization or Political Party on behalf of whom such funds are being solicited and a description of the relationship between the municipal elected officer and Political Committee, Electioneering Communications Organization, 501(c)(4) Organization or Political Party. The report shall be filed on a form MD -ED 28, a copy of which is attached hereto. Candidate Reporting Requirements Effective January 1, 2017, each candidate for municipal office in Miami -Dade County shall ensure that their designated campaign treasurer shall, within five (5) days of commencing solicitation activities, either directly or indirectly, on behalf of a Political Committee, Electioneering Communications Organization, 501(c)(4) Organization or Political Party, file a one-time report with the City Clerk indicating that the candidate is undertaking solicitation activities on behalf of such Political Committee, Electioneering Communications Organization, 501(c)(4) Organization or Political Party. The report shall identify the name of the Political Committee, Electioneering Communications Organization, 501(c)(4) Organization or Political Party on behalf of whom such funds are being solicited and a description of the relationship between the candidate and Political Committee, Electioneering Communications 1 Organization, 501(c)(4) Organization or Political Party. The report shall be filed on a form MD -ED 28, a copy of which is attached hereto. Failure to Report / Appeals Any municipal elected officer or candidate for municipal office who fails to file the report as required by Miami -Dade County Code Sections 12-14.2 and 12-14.2.1 on the designated due date shall, for the first violation, be sent a letter of reprimand and instruction regarding the provisions of these Sections, and for each subsequent violation, be subject to a fine of $50 per day for the first three (3) days and, thereafter, $500 per day for each day late not to exceed $5,000. Such fine shall not be an allowable campaign expense and shall be paid only from the personal funds of the candidate for municipal office or municipal elected officer. Any candidate for municipal office or municipal elected officer may appeal or dispute the fine to the Miami -Dade County Commission on Ethics and Public Trust based upon, but not limited to, unusual circumstances surrounding the failure to file on the designated due date, and may request, and shall be entitled to a hearing before the Commission on Ethics and Public Trust, which shall have the authority to waive the fine in whole or in part. Any such appeal or dispute shall be made within twenty (20) days after receipt of notice from the City Clerk that payment is due or such appeal or dispute shall be waived. Enclosure: • Form MD -ED 28 • Miami -Dade County Ordinances No. 16-46 and 16-75 F:\CLER\HATL\Letters\LTC\01_2017 Instructions For Reporting Of Solicitation For Candidates, PACS And Ecos Reg 2.Docx We are committed to providing excellent public service and safety to all who live, work and play in our vibrant, tropical, historic community 2 MIAMI-DADE MIAMI-DADE COUNTY ELECTIONS DEPARTMENT REPORTING OF SOLICITATION OF CONTRIBUTIONS FOR POLITICAL COMMITTEES, ELECTIONEERING COMMUNICATIONS ORGANIZATIONS, 501(c)(4) ORGANIZATIONS AND POLITICAL PARTIES Name OFFICE USE ONLY Address (number and street) City, State, Zip Code ■ CHECK IF ADDRESS HAS CHANGED Filing as: ■ Elected Official Office: ■ Miami -Dade County Candidate Office: ■ Municipal Candidate (Name of Municipality) Office: CERTIFICATION It is a first degree misdemeanor for any person to falsify a public record (ss. 839.13, F.S.) I certify that I have examined this report and it is true, correct, and complete. I certify that I have examined this report and it is true, correct, and complete. (Type name) ■ Treasurer ■ Deputy Treasurer (Type name) X ■ Elected Official ■ Candidate X Signature Signature Date Date MD -ED 28 (Rev. 1/1/17) MIAMFDADE 777 REPORTING OF SOLICITATION OF CONTRIBUTIONS FOR 'ir POLITICAL COMMITTEES, ELECTIONEERING COMMUNICATIONS ORGANIZATIONS, 501(C)(4) ORGANIZATIONS AND POLITICAL PARTIES This report must be filed by Miami -Dade County and Municipal Elected Officers and Candidates to publicly disclose their fundraising activities for Political Committees, Electioneering Communications Organizations, 501(C)(4) Organizations and Political Parties within five days of commencing solicitation activities, either directly or indirectly, on behalf of said organization(s). (1) Name I.D. Number (2) Page of (Only for County Candidates) (3) Row Number (4) Name of PC, ECO, 501(c)(4) Organization or Political Party (5) PC, ECO, 501(c)(4) Organization or Political Party (6) Description of Relationship between Candidate/Officer and PC, ECO, 501(c)(4) Organization or Political Party (7) Date solicitation activities started SEE REVERSE FOR INSTRUCTIONS AND CODE VALUES MD -ED 28 (Rev. 1/1/17) Approved Veto Override Mayor ORDINANCE NO, 16 - 4 6 Amended Agenda Item No, 7(A) 5-17-16 ORDINANCE CREATING SECTION 12-14,2 OF THE CODE OF MIAMI-DADE COUNTY, FLORIDA, TO PROVIDE FOR REPORTING REQUIREMENTS FOR COUNTY AND MUNICIPAL ELECTED OFFICERS AND CANDIDATES REGARDING SOLICITATION OF CONTRIBUTIONS FOR POLITICAL COMMITTEES AND ELECTIONEERING COMMUNICATIONS ORGANIZATIONS; PROVIDING PENALTIES FOR FAILURE TO REPORT; PROVIDING FOR ENFORCEMENT BY THE COMMISSION ON ETHICS AND PUBLIC TRUST; PROVIDING SEVERABILITY, INCLUSION IN THE CODE AND AN EFFECTIVE DATE WHEREAS, this Board believes that transparency and accountability in government is fundamental to the public's faith in the democratic process; and WHEREAS, this Board desires that campaign fundraising activities by candidates and public officials be transparent and accessible by all residents of Miami -Dade County; and WHEREAS, fundraising through political committees and electioneering communications organizations creates the potential for anonymous campaign fundraising that can function as a barrier between citizens and those seeking to represent them in elective office; and WHEREAS, state law and the rules of the Florida legislature currently require that some state officers and legislators disclose when they fundraise for political committees or electioneering communication organizations; and WHEREAS, this Board desires to establish similar requirements for County and municipal officials and candidates within Miami -Dade County; and Amended Agenda Item No. 7(A) Page 2 WHEREAS, requiring public officials and candidates to publicly disclose their fundraising activities for political committees or electioneering communications organizations would provide needed sunlight on the campaign fundraising process and allow voters to make informed decision about candidates, NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA: Section 1. Section 12-14.2 of the Code of Miami -Dade County, Florida, is hereby created to read as follows in its entirety: Sec. 12-14.2. County and Municipal Elected Officer and Candidate Reporting Requirements for Political Committee and Electioneering Communication Organization Solicitations. (1) Effective January 1, 2017, each candidate for County or municipal office in Miami -Dade County shall insure that their designated campaign treasurer shall, within five (5) days of commencing solicitation activities, either directly or indirectly, on behalf of a political committee or electioneering communications organization, file a one- time report with the Supervisor of Elections or other applicable filing officer indicating that the candidate is undertaking solicitation activities on . behalf of such political committee or electioneering communications organization. The report shall identify the name of the political committee or electioneering communications organization on behalf of whom such funds are being solicited and a description of the relationship between the candidate and the political committee or electioneering communications organization. The report shall be filed on a form created by the Supervisor of Elections for such purpose. (2) Effective January 1, 2017, upon commencement of any solicitation activities undertaken on behalf of any political committee or electioneering communications organization, each County or municipal elected officer in Miami -Dade County who is not also a candidate for another County or (3) Amended Agenda Item No. 7(A) Page 3 municipal office shall, within five (5) days of commencing solicitation activities, either directly or indirectly, on behalf of a political committee or electioneering communications organization, file a one-time report with the Supervisor of Elections or other applicable filing officer indicating that the officer is undertaking solicitation activities on behalf of such political committee or electioneering communications organization. The report shall identify the name of the political committee or electioneering communications organization on behalf of whom such funds are being solicited and a description of the relationship between the officer and the political committee or electioneering communications organization. The report shall be filed on a form created by the Supervisor of Elections for such purpose. Any County or municipal elected officer or candidate who fails to file a report as required by this section on the designated due date shall, for the first violation, be sent a letter of reprimand and instruction regarding the provisions of this Section, and for each subsequent violation, be subject to a fine of $50 per day for the first three (3) days and, thereafter, $500 per day for each day late not to exceed $5,000. Such fine shall not be an allowable campaign expense and shall be paid only from the personal funds of the candidate or officer. Any candidate or officer may appeal or dispute the fine to the Miami -Dade County Commission on Ethics and Public Trust based upon, but not limited to, unusual circumstances surrounding the failure to file on the designated due date, and may request, and shall be entitled to, a hearing before the Commission on Ethics and Public Trust, which shall have the authority to waive the fine in whole or in part. Any such appeal or dispute shall be made within twenty (20) days after receipt of notice from the Supervisor of Elections that payment is due or such appeal or dispute shall be waived. Section 2. If any section, subsection, sentence, clause or provision of this ordinance is held invalid, the remainder of this ordinance shall not be affected by such invalidity. Amended Agenda Item No. 7(A) Page 4 Section 3. It is the intention of the Board of County Commissioners, and it is hereby ordained that the provisions of this ordinance, including any sunset provision, shall become and be made a part of the Code of Miami -Dade County, Florida. The sections of this ordinance may be renumbered or relettered to accomplish such intention, and the word "ordinance" may be changed t0 "section," "article," or other appropriate word. Section 4. This ordinance shall become effective ten (10) days after the date of enactment unless vetoed by the Mayor, and if vetoed, shall become effective only upon an override by this Board. PASSED AND ADOPTED: May 17, 2016 Approved by County Attorney as to form and legal sufficiency: Prepared by: Oren Rosenthal Prime Sponsor: Co -Sponsor: AQW c4. Commissioner Daniella Levine Cava Commissioner Sally A. Heyman Approved Mayor Agenda Item. No. 7( 0) Veto 7-6-16 Override ORDINANCE NO. 16-75 ORDINANCE CREATING SECTION 12-14.2.1 OF THE CODE OF MIAMI-DADE COUNTY, FLORIDA, TO PROVIDE FOR REPORTING REQUIREMENTS FOR COUNTY AND MUNICIPAL ELECTED OFFICERS AND CANDIDATES REGARDING SOLICITATION OF CONTRIBUTIONS FOR ORGANIZATIONS EXEMPT FROM TAXATION UNDER SECTION 501(c)(4) OF THE INTERNAL REVENUE CODE AND POLITICAL PARTIES; PROVIDING PENALTIES FOR FAILURE TO REPORT; PROVIDING FOR ENFORCEMENT BY THE COMMISSION ON ETHICS AND PUBLIC TRUST; PROVIDING SEVERABILITY, INCLUSION IN THE CODE AND AN EFFECTIVE DATE WHEREAS, this Board believes that transparency and accountability in government is fundamental to the public's faith in the democratic process; and WHEREAS, this Board desires that campaign fundraising activities by candidates and public officials be transparent and accessible by all residents of Miami -Dade County; and WHEREAS, fundraising through organizations exempt from taxation under Section 501(c)(4) of the Internal Revenue Code ("501(c)(4) Organizations") and political parties create the potential for anonymous campaign fundraising that can function as a barrier between citizens and those seeking to represent them in elective office; and WHEREAS, state law and the rules of the Florida legislature currently require that some state officers and legislators disclose when they fundraise for a 501(e)(4) Organizations; and WHEREAS, this Board desires to establish similar requirements for County and municipal officials and candidates within Miami -Dade County as they relate to both 501(c)(4) Organizations and political parties; and Agenda Item No. 7(C) Page 2 WHEREAS, requiring public officials and candidates to publicly disclosure their fundraising activities for 501(e)(4) Organizations and political parties would provide needed sunlight in the campaign fundraising process and allow voters to make informed decision about candidates, NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA: Section 1. Section 12-14.2.1 of the Code of Miami -Dade County, Florida, is hereby created to read as follows: Sec. 12-14.2.1 County and Municipal Elected Officer and Candidate Reporting Requirements for Organizations Exempt Under Section 501(c)(4) of the Internal Revenue Code or Political Party Solicitations. (1) »Effective January 1, 2017, each candidate for County or municipal office in Miami -Dade County shall insure that their designated campaign treasurer shall, within five (5.) days of commencing solicitation activities, either directly or indirectly, on behalf of an organization exempt under Section 501(e)(4) of the Internal Revenue Code except for home owners associations ("501(c)(4) Organization") or a political party, file a one-time report with the Supervisor of Elections or other applicable filing officer indicating that the candidate is undertaking solicitation activities on behalf of such 501(c)(4) Organization or political party. The report shall identify the name of the 501(0(4) Organization or political party on behalf of whom such funds are being solicited and a description of the relationship between the candidate and the 501(c)(4) Organization or political party.« 1 [[Each candidate for County or municipal office 'tel campaign treasurer shall, at the time of filing any contribution or expenditure reports othenpvise-guir-e law, file an additional electronic report with the Supervisor of Elections or other applicable filing officer regarding solicitation activities on behalf of any organization exempt 1 Committee amendments are indicated as follows: Words stricken through and/or [[double bracketed]] are deleted, words underscored and/or »double arrowed«< are added. Agenda Item No, 7(0) Page 3 from taxation under Section 501(c)(4) of the Internal Revenue —Cede ("501(c)(1I) Organization") or political ly by ,the ry-, vy enc ^ander te5 the name of the person or entity contributing the fartdsthe name of the 501(c)(4) Organization or political - d, the amount of the contribution, and a description of the relationship between the candidata and the 501(c)(1) Organization or political party, if any,]] The report shall be filed on a form created by the Supervisor of Elections for such purpose. [[A candidate may comply with the reporting requirements of this subsection by filing a one time report indicating that all contributi. Organization or -political party were solicited either directly or indirectly by the candidate, Upon filing su eportt ne further reports shall b • or political party during any reporting period.]] (2) »Effective January 1, 2017, upon commencement of any solicitation activities undertaken on behalf of a 501(c)(4) Organization or a political party, each County or municipal elected officer in Miami -Dade County who is not also a candidate for another County or municipal office shall, within five (5) days of commencing solicitation activities, either directly or indirectly, on behalf of a 501(c)(4) Organization or a political party, file a one-time report with the Supervisor of Elections or other applicable fling officer indicating that the officer is undertaking solicitation activities on behalf of such 501(c)(4) Organization or political party. The report shall identify the name of the 501(c)(4) Organization or political party on behalf of whom such funds are being solicited and a description of the relationship between the officer and the 501(o)(4) Organization or political party.« [[ of any solicitation activities undertaken on behalf of any 50-40 municipal elected officer in Miami Dade County who is not also a candidate for der -of the officer's term of office, file an electronic report with the Supervisor of—glee ions or other applicable filing officer regarding solicited, directly or indirectly, by the officer, the name -of • _ -he-funds-„-the-name-of-the 501(c)('1) Organization or political party on behalf of whom (3) Agenda Item No. 7( 0) Page 4 such fun& were solicited, the amount of the contribution, and the 501(c)(1) Organization or political party, if any.]] The report shall be filed on a form created by the Supervisor of Elections for such purpose. [[A County or munieipal-ele • , ,- : ing requirements of this subsoeti filing a one time report Organization or poi - tker direetly or indirectly by the County or municipal elected official. Upon filing such rep; - , • : : , 1 -be required identified 501(c)(4) Organizaf term.]] Any County or municipal elected officer or candidate who fails to file a report as required by this section on the designated due date shall >>, for the first violation, be sent a letter of instruction regarding the provisions of this Section, and for each subsequent violation, «« be subject to a fine of $50 per day for the first three (3) days and, thereafter, $500 per day for each day late not to exceed $5,000. Such fine shall not be an allowable campaign expense and shall be paid only from the personal funds of the candidate or officer. Any candidate or officer may appeal or dispute the fine to the Miami -Dade County Commission on Ethics and Public Trust based upon, but not limited to, unusual circumstances surrounding the failure to file on the designated due date, and may request, and shall be entitled to, a hearing before the Commission on Ethics and Public Trust, which shall have the authority to waive the fine in whole or in part. Any such appeal or dispute shall be made within twenty (20) days after receipt of notice from the Supervisor of Elections that payment is due or such appeal or dispute shall be waived. Section 2. If any section, subsection, sentence, clause or provision of this ordinance is held invalid, the remainder of this ordinance shall not be affected by such invalidity. Section 3. It is the intention of the Board of County Commissioners, and it is hereby ordained that the provisions of this ordinance, including any sunset provision, shall become and be made a part of the Code of Miami -Dade County, Florida. The sections of this ordinance may Agenda Item No. 7 (C) Page 5 be renumbered or relettered to accomplish such intention, and the word "ordinance" may be changed to "section," "article," or other appropriate word. Section 4. This ordinance shall become effective ten (10) days after the date of enactment unless vetoed by the Mayor, and if vetoed, shall become effective only upon an override by this Board. PASSED AND ADOPTED: July 6 , 2 016 Approved by County Attorney as to form and legal sufficiency: Prepared by: Oren Rosenthal Prime Sponsor: Co -Sponsor: Commissioner Juan C. Zapata Commissioner Daniella Levine Cava