Article IV — Democracy Dollars

A.

There is hereby established the dedicated, non-lapsing Oakland Democracy Dollars Fund to be used for disbursing proceeds to certified candidates who redeem Democracy Dollars under Section 3.15.120.

For the two-year budget cycle beginning July 1, 2023 and each subsequent two-year budget cycle beginning on July 1 of odd-numbered years, the City shall appropriate to the fund no less than four million dollars ($4,000,000.00) for the purpose of funding the Democracy Dollars Fund. The City shall consider additional appropriations to the fund as requested by the Commission to ensure sufficient money in the Fund. After July 1, 2023, for every two-year budget cycle beginning on July 1 of odd-numbered years, the

required minimum appropriation under this subsection shall be increased by the increase in the Consumer Price Index over the preceding two (2) years.

B.

Additional monies may be deposited into the fund from these sources:

Special tax.

Democracy Dollar proceeds returned by candidates under Section 3.15.170.

Voluntary donations made to the fund.

C.

Any unspent revenue remaining in the fund after an election shall remain in the fund and accrue for making future disbursements under Subsection A. Funds remaining in the Democracy Dollars Fund shall not exceed double the amount of the budgeted fund at any one time. Any excess beyond twice the amount of the four million dollars ($4,000,000.00), as adjusted over time for inflation, shall be returned to the General Fund. In addition, after all money has been distributed to candidates in an election cycle, the Commission may use up to twenty (20) percent of the remaining Democracy Dollars Fund for outreach efforts intended to increase candidate and resident participation in the Democracy Dollar Program in future election cycles.

D.

For the two-year budget cycle beginning July 1, 2023 and each subsequent two-year budget cycle beginning on July 1 of odd-numbered years, the City shall appropriate for the Public Ethics Commission no less than three hundred fifty thousand dollars ($350,000.00) for the purpose of non-staff costs for administering the Democracy Dollars Program, in addition to staff budgeting required by Oakland City Charter Section 603(g). Upon receiving notice from the Commission under Oakland City Charter Section 603(b)(4), the City shall consider additional appropriations to the Commission to ensure sufficient funds are provided to administer the Democracy Dollars Program. After July 1, 2023, for every two-year budget cycle beginning on July 1 of odd-numbered years, the required minimum appropriations under this subsection shall be increased by the increase in the Consumer Price Index over the preceding two (2) years. For the 2023—24 fiscal year, or earlier, the City shall appropriate an additional amount of no less than seven hundred thousand dollars ($700,000.00) for the purpose of startup costs associated with initiating the Democracy Dollars Program, with any remaining funds to be carried forward into future fiscal years.

E.

The minimum budget set-aside in this Section may be reduced, for a fiscal year or a two-year budget cycle, upon a finding in the budget resolution that the City is facing an extreme fiscal necessity, as defined by City

Council resolution. A reduction may occur only as a part of general reduction in expenditures across multiple departments.

(Res. No. 89316, § 2, 7-22-2022)

A.

The Commission shall administer the fund only for the purposes specified under Subsection 3.15.060 A.

B.

No later than six (6) months after each election, the Commission shall review use of the fund in the last election and develop projections of revenue to and disbursements from the fund for each of the next two (2) election cycles.

C.

Prior to January 1 of the year in which an election occurs, the Commission shall project and publish the amount of money available in the fund for the next election. In making its projection, the Commission shall reasonably ensure that revenue in the fund will be sufficient to disburse the Democracy Dollar proceeds up to the maximum amounts under Subsection 3.15.130 A. to the number of candidates likely to be certified in the Program in the next election.

D.

If at any time the Commission determines that revenue available in the fund is not or may not be sufficient to disburse the Democracy Dollar proceeds up to the maximum amounts under Subsection 3.15.130 A. to all certified candidates in the next election, the Commission shall promptly request an appropriation from City Council to account for the deficit in the fund. In an election year, the City Council may consider such a request if a Democracy Dollar contingency fund was budgeted in a prior year.

E.

If the Commission does not receive an appropriation requested under Subsection D within a reasonable time, the Commission shall do each of the following:

Provide notice to the public and to all applicant or certified candidates that the fund does not have sufficient revenue to disburse the Democracy Dollar proceeds up to the maximum amounts under Subsection 3.15.130 A.;

Establish a modified deadline for eligible residents to assign the Democracy Dollars;

After the modified deadline under Subsection E.2., disburse the Democracy Dollar proceeds to certified candidates on a pro rata or other equitable basis.

F.

The Commission shall coordinate with the appropriate agencies, including the Alameda County Registrar of Voters and the Oakland City Clerk, for all information required for the proper administration of the Program. The Commission shall develop the means by which the information needed to administer the program is stored and received.

(Res. No. 89316, § 2, 7-22-2022)

A.

To become certified in the program, a candidate for a covered office must file with the Commission a notice of intent to apply for certification in the program, signed by the candidate and the candidate's treasurer, during the qualifying period. On the notice of intent, the candidate must attest to all of the following:

The candidate will comply with all conditions of the program, including contribution and expenditure limits, and with other State or local law, as applicable, during the election cycle;

The candidate and the candidate's treasurer will attend at least one (1) training for the program conducted by Commission staff;

Candidates for Mayor will personally participate in at least five (5) public debates or forums; candidates for any office other than Mayor will participate in at least three (3) public debates or forums. Only public debates or forums to which all other applicants or certified candidates for the covered office sought by the candidate are invited to participate shall be counted for the purposes of this Section. Within five (5) days of the candidate's participation, in each public debate or forum required under this Section, the candidate must notify the Commission, in writing, of their participation in the debate or forum;

If certified in the program, the candidate will submit to audits by the Commission.

B.

During the qualifying period, an applicant candidate may submit a written application for certification in the program to the Commission attesting that the candidate satisfies all of the following conditions:

The candidate has filed with the Commission a notice of intent to apply for certification in the program under Subsection A.;

The candidate meets the requirements for holding the covered office set forth in the City Charter and State law;

The candidate has qualified or has taken out nomination papers to become qualified to appear on the ballot in the election;

The candidate has filed and will continue to file, completely and accurately, all campaign statements and reports required by State or local law;

The candidate owes no outstanding fine or penalty for a violation of State or local election law;

The candidate has complied with and will continue to comply with all conditions of the program for the election cycle;

Within the qualifying period, the candidate has received the minimum number of qualifying contributions required for the covered office, as follows:

a.

For Mayor, at least four hundred (400), including ten (10) qualifying contributions from each City Council district;

b.

For City Attorney, City Auditor, or at-large City Councilmember, at least one hundred fifty (150), including five (5) qualifying contributions from each City Council district;

c.

For District Councilmember, at least one hundred twenty-five (125), including twenty-five (25) qualifying contributions from the candidate's Council district;

d.

For School Board Director, at least seventy-five (75), including twenty (20) qualifying contributions from the candidate's School Board Director district.

C.

As part of an application for certification in the program, an applicant candidate shall include documentation, as prescribed by the Commission, establishing the validity of each qualifying contribution required under Subsection B.7.

D.

An applicant candidate may not be certified in the program if the applicant candidate:

Has accepted a contribution in excess of the limit under Section 3.12.050(B) or 3.12.060(B) of the Oakland Municipal Code, unless, within ten (10) days of being notified by the Commission, the candidate remits the portion of the contribution that is in excess of the limit under Sections 3.12.050(B) or 3.12.060(B) of the Oakland Municipal Code to the Commission;

Has unpaid fines, penalties, fees or other amounts of money owed to the Commission which are past due;

Has failed to file any campaign statements which remain past due.

E.

No later than fourteen (14) days after an applicant candidate submits an application for certification in the program, the Executive Director shall determine whether the candidate has met the requirements of Subsection B. and do the following:

If the requirements are met, certify the candidate in the program and provide written notice to the candidate of the certification;

If the requirements are not met, provide written notice to the candidate of the denial of certification and provide an opportunity for the candidate to:

a.

Cure any deficiencies in the application;

b.

Appeal a denial of certification by the Executive Director to the Commission within fourteen (14) days of the Executive Director's decision to deny.

F.

The Executive Director may revoke a candidate's certification in the program if the candidate:

Fails to qualify to appear on the ballot for the covered office election; or

Withdraws from the election.

G.

A certified candidate whose certification in the program is revoked under Subsection F. may appeal his revocation to the Commission. The Commission shall develop a procedure for a candidate who submits a petition under Subsection F. or any other candidate for the same covered office to appeal to the Commission a determination made by the Executive Director under Subsection F. Upon making a final decision on an appeal filed under this Subsection, the Commission shall promptly notify the candidate who submitted the petition and all other candidates for the same covered office of its final decision.

H.

The Commission may revoke a candidate's certification in the program if the candidate:

Fails to meet, misrepresents, or no longer meets the requirements in Subsection B.;

Commits any other violation of this Act or a violation of the Oakland Campaign Reform Act resulting in a mainline penalty, as determined by the Commission;

Is assessed a monetary penalty by the Fair Political Practices Commission as the result of a mainline settlement, default, judgment, administrative law judge decision, or civil action;

Is convicted of a criminal violation of this Act, the Oakland Campaign Reform Act, or the Political Reform Act, any felony, or a misdemeanor for a crime of moral turpitude.

I.

The Executive Director shall provide a written determination to a candidate whose certification in the program is revoked under Subsection F. or H. that includes both of the following:

The specific reason under Subsection F. or H. for revoking the candidate's certification;

The specific facts found by the Commission that form the basis for revoking the candidate's certification.

J.

A candidate whose certification in the program is revoked under Subsection F. or H. shall return to the Commission, for deposit in the fund, any remaining Democracy Dollar proceeds in the candidate's campaign account in accordance with Section 3.15.170. If the candidate's certification is revoked pursuant to Subsection H., the candidate shall be personally liable for any Democracy Dollar proceeds expended by the candidate, other than the Democracy Dollar proceeds the candidate expended in good faith before receiving notice of the revocation.

K.

A candidate whose certification is revoked under Subsection F. or H. may appeal the final decision of the Commission to the Alameda County Superior Court on the ground that the decision was arbitrary and capricious or contrary to law.

(Res. No. 89316, § 2, 7-22-2022)

A.

Except as provided in Subsection C., the Commission shall mail to each eligible resident who is registered to vote, at the eligible resident's address listed in voter registration records, the number of Democracy Dollar vouchers allocated to each resident on a date no later than April 1 of the year in which an election occurs. Thereafter, the Commission shall mail to any eligible resident who becomes registered to vote after the initial mailing the same number of Democracy Dollars periodically until October 1. The Commission may then mail to any eligible resident who becomes registered to vote after the initial mailing the same number of Democracy Dollars periodically until at least the election day.

B.

The Commission shall electronically distribute Democracy Dollar vouchers under Subsection B. to an eligible resident who submits a request, via a means developed by the Commission, to receive Democracy Dollars electronically and who attests under penalty of perjury to being an eligible resident or authorized agent of an eligible resident who has not made any other request for Democracy Dollars.

C.

Prior to the last day for assigning a Democracy Dollar under Subsection 3.15.110 D.4., an eligible resident who does not receive Democracy Dollars in a mailing under Subsection A., or electronic mailing under Subsection B., may submit a request, via a means developed by the Commission, to receive Democracy Dollars from the Commission. After the Commission verifies that the person submitting the request is an eligible resident and that the provision of Democracy Dollars to the eligible resident is otherwise permitted under this Act, the Commission shall provide the eligible resident the same number of Democracy Dollars mailed to eligible residents under Subsection A.

D.

An eligible resident may apply to the Commission to replace a Democracy Dollar if the eligible resident submits to the Commission a statement, via a means developed by the Commission, that the Democracy Dollar was lost or stolen.

E.

The Commission shall develop a procedure to determine whether to issue a replacement Democracy Dollar to an eligible resident who submits a statement under Subsection E.

F.

The Commission shall cancel a Democracy Dollar if the Commission determines that it is lost or stolen.

(Res. No. 89316, § 2, 7-22-2022)

A.

In order to assign a paper Democracy Dollar voucher to an applicant or certified candidate, an eligible resident shall do all of the following:

Write the name of the candidate on the Democracy Dollar;

Sign and date the Democracy Dollar;

Submit the Democracy Dollar by doing any of the following:

a.

Mailing the Democracy Dollar to the Commission. A Democracy Dollar shall be considered properly assigned if it is postmarked no later than thirty (30) days after the day of the election;

b.

Personally delivering the Democracy Dollar to a candidate or a representative of the candidate who is registered with the Commission for the purpose of receiving a Democracy Dollar on behalf of the candidate;

c.

Personally delivering the Democracy Dollar to the Commission.

B.

As used in Subsection A.3.b., the Commission shall determine the means by which candidates or representatives of candidates shall register with the Commission for the purpose of receiving a Democracy Dollar on behalf of the candidate. Only the following individuals may be registered as a "representative of the candidate" under this section:

Unpaid volunteers for the candidate's campaign; and

Members of the candidate's campaign staff that are regularly employed by the campaign.

C.

In order to assign Democracy Dollar vouchers distributed electronically, an eligible resident shall use the technology as provided in Subsection 3.15.050 C.4. and the process developed by the Commission.

D.

An eligible resident may not do any of the following:

Change the assignment of a Democracy Dollar after the eligible resident assigns the Democracy Dollar to a candidate;

Assign a Democracy Dollar by proxy, power of attorney, or agent, unless necessary to accommodate an eligible resident with a disability;

Assign a Democracy Dollar in a manner other than as provided under Subsection A.;

Assign a Democracy Dollar later than thirty (30) days after the day of the election.

E.

A Democracy Dollar expires and may not be assigned once the person to whom the Democracy Dollar was distributed no longer qualifies as an eligible resident.

(Res. No. 89316, § 2, 7-22-2022)

A.

A certified candidate may redeem the Democracy Dollar assigned to the candidate pursuant to Subsection

by mailing or delivering the Democracy Dollars to the Commission up to thirty (30) days after

the day of an election.

B.

For each Democracy Dollar assigned to an applicant or certified candidate pursuant to Subsection

the Commission verifies all of the following:

The candidate to whom the Democracy Dollars assigned is a certified candidate at the time the Commission disburses the Democracy Dollar proceeds;

The Democracy Dollar was properly assigned by an eligible resident;

Disbursement of Democracy Dollar proceeds would not cause the candidate to exceed the maximum amount of Democracy Dollar proceeds available under Subsection 3.15.130 A.

C.

Subject to Subsections D. and E., the Commission shall determine and publish, in its timeline under Subsection 3.15.050 C.5.c., all dates on which the Commission will disburse Democracy Dollar proceeds to certified candidates in the year of an election.

D.

Except as provided in Subsection E., the Commission shall disburse Democracy Dollar proceeds to certified candidates no less frequently than twice per month.

E.

During the month immediately preceding the month in which an election occurs and continuing until the election occurs, the Commission shall disburse Democracy Dollar proceeds to certified candidates at least once per week.

F.

Candidates receiving disbursed Democracy Dollar proceeds shall deposit them in their campaign checking account as required by Oakland Municipal Code Section 3.12.110.

(Res. No. 89316, § 2, 7-22-2022)

A.

In a contested election, the Commission shall not disburse to a certified candidate more than the maximum amount of Democracy Dollar proceeds available for the covered office, which shall be two-thirds (⅔) of the adjusted limits specified in Section 3.15.140.

B.

Notwithstanding Subsection A., the Commission may not disburse more than ten thousand dollars ($10,000.00) in Democracy Dollar proceeds to any certified candidate in an uncontested election, subject to adjustment under Section 3.15.200.

C.

If an uncontested election becomes a contested election, the Commission shall disburse proceeds, on the next published date of disbursement, for all Democracy Dollars properly assigned to a certified candidate to date, up to the amounts specified in Subsection A.

(Res. No. 89316, § 2, 7-22-2022)