AGENDA #1

 

MEMORANDUM

 

TO:                  Mayor and Town Council

 

FROM:            Ralph D. Karpinos, Town Attorney

 

SUBJECT:       Public Hearing on Proposed Public Campaign Financing Program for Chapel Hill

 

DATE:             May 14, 2008

 

PURPOSE

 

The purpose of tonight’s public hearing is to receive public comment on the proposed voter owned election program for Chapel Hill municipal elections.

 

BACKGROUND

 

On July 16, 2007, the North Carolina General Assembly ratified Session Law 2007-222 which authorized the Town of Chapel Hill to conduct a program for the public funding of municipal elections. 

 

The Statute stipulates that the Council conduct a public hearing on the proposed program before adopting it. The Statute further requires that the program be approved by the State Board of Elections after it has been adopted by the Town.

 

On November 12, 2007, the Town Council established a Council Committee work on the development of such a program and to bring back a report and recommendation to the full Council for its consideration. 

 

The Council Committee on Voter Owned Elections met a number of times over the last few months and received input from Kim Westbrook Strach of the North Carolina State Board of Elections and from Bob Hall and Jenn Frye of Democracy North Carolina.  The Committee presented a report to the Council on April 14, 2008.

 

On April 14, the Council called this public hearing to receive comment on the draft program and directed the Manager and Attorney to provide public notice of the hearing and prepare a draft ordinance to implement the program for presentation at the public hearing.  (Attachment 1 is the Agenda Report from April 14, including all attachments.)

 

DISCUSSION

 

Attachment 2 is a draft Ordinance that would implement the provisions of the proposed program presented to the full Council by the Council Committee on April 14.

 

Key Elements of the Program include:

 

  1. The program is voluntary. Candidates may choose to participate and, if they do so, they must agree to strict fundraising and expenditure limitations.
  2. Additional reporting requirements are established for all candidates for municipal election.
  3. Prior to filing a declaration of participation in the program, candidates who intend to participate may raise a limited amount of money.  For Council candidates, the limit is $750.  For Mayoral candidates, the limit is $1500.
  4. Candidates must demonstrate public support to qualify for the program.  Council candidates are required to raise, from at least 75 qualifying contributors, at least $750.  These contributions must be in the $5 to $20 dollar range. For Mayoral candidates, the requirement is 150 qualifying contributors and a total of $1500.
  5. Qualifying contributors are persons who are registered to vote in Chapel Hill or eligible to do so.
  6. Council candidates are limited to raising and spending $2250; Mayoral candidates are limited to raising and spending $4500.
  7. A participating Council candidate would be eligible to receive a $3000 public grant.  A participating Mayoral candidate would be eligible to receive a $9000 public grant.
  8. Public grants would not be provided if the number of candidates does not exceed the number of open seats. 
  9. Additional public grants (rescue funds) are available if non-participating candidates’ required expenditure reports show expenditures in excess of the spending limit for certified candidates.  Rescue funds would be up to  $2000 for Council candidates and up to $4000 for Mayoral candidates.
  10. The program would be administered by the State Board of Elections.
  11. The program includes enforcement provisions. 

 

NEXT STEPS

 

Following tonight’s public hearing, the Council will have an opportunity to consider any comments received.  If enacted by the Council, the program would then need to be submitted to the State Board of Elections again for approval.

 

RECOMMENDATION

 

I recommend that the Council refer comments received this evening to the Manager and Attorney and that the Council consider this program for possible enactment at its June 9, 2008 business meeting.

 

ATTACHMENTS

 

  1. April 14, 2008, Agenda #6 (including attachments) (begin new page 1).
  2. Draft Ordinance Establishing the Voter Owned Election Program (p. 20).

 

ADDITIONAL INFORMATION (May 14, 2008)

  1. Staff PowerPoint Presentation [18 KB pdf]
  2. Comments from Amy Smoker