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Home My Public Portal About11) 10B - Ord. 20-1050 Electronic and Paper Methods of Filing Campaign Finance Disclosure StatementsAGENDA ITEM 10.B. MANAGEMENT SERVICES DEPARTMENT MEMORANDUM DATE: November 4, 2020 TO: The Honorable City Council FROM: Bryan Cook, City Manager By: Peggy Kuo, City Clerk SUBJECT: INTRODUCTION AND FIRST READING OF ORDINANCE NO 20-1050 APPROVING THE USE OF ONLINE OR ELECTRONIC FILING OF CAMPAIGN STATEMENTS AND STATEMENTS OF ECONOMIC INTEREST RECOMMENDATION: The City Council is requested to: 1. Introduce for first reading by title only and waive further reading of Ordinance No. 20- 1050 approving the use of online or electronic filing of campaign statements and Statement of Economic Interest; and 2. Schedule the second reading of Ordinance No. 20-1050 for the November 17, 2020 Council meeting. BACKGROUND: 1. On January 1, 2013, Assembly Bill 2452 went into effect adding Government Code 84615 which allows a local government agency to require an elected officer, candidate, committee or other person to file statements, reports, or other documents online or electronically with its local filing officier. This does not include committees who receive contributions or make expenditures totaling less than two thousand dollars in a calendar year. This code further authorizes the City Clerk to accept electronic filings in lieu of paper filings. 2. On January 1, 2021, Assembly Bill 2151 will go into effect requiring a local government agency to post on its internet website, within 72 hours of the applicable filing deadline, a copy of any specified statement, report, or other document filed with that agency in Honorable City Council November 18, 2020 Page 2 of 3 paper format. This bill would require that the statement, report, or other document be made available for four years from the date of the election association with the filing. ANALYSIS: The City Clerk’s office accepts filing of two major categories of economic disclosure documents: 1. Campaign statements disclosing contributions to local candidates and ballot measure campaigns; 2. Statement of economic disclosure (commonly known as Form 700) from designated public officials and employees. In most instances, these documents are filed with the City Clerk and the City Clerk forwards copies to the Fair Political Practices Commission (FPPC). If the documents are not filed in a timely fashion, the FPPC imposes penalities on the filers. Pursuant to Government Code Section 84615, local government agencies are allowed to require an elected officer, candidate, committee or other person to file statements, reports, or other documents online or electronically with its local filing officer. This does not include committee who receive contributions or make expenditures totaling less than two thousand dollars in a calendar year. This code further authorizes the City Clerk to accept electronic filings in lieu of paper filing. In order for the City to use and accept electronic campaign filings, the City Council must first adopt an ordinance with required findings approving the use of an electronic system, which includes that the system will operate securely and effectively and will not unduly burden filers; the system must be available free of charge to filers and the public for viewing filings; and must include a procedure for filers to comply with the requirement that they sign statements and reports under penalty of perjury. In addition, before a city can begin implementing an all-electronic filing system, the FPPC must review and approve the program to ensure it complies with prescribed security and transparency protocols. Although state law authorizes the City to mandate electronic filing, staff recognizes that such mandate could have a direct effect on those committees or individuals who do not have computer access or familiarity with computer programs. To ensure that the same opportunity to comply with the Political Reform Act is afforded to all committees without unduly burdening any one committee, the City Clerk recommends the Council approve an Opt-In/Out program. In short, to ensure reporting continuity and accurate accounting of contributions/expenditures, once a committee chooses to file a report electronically, the committee is deemed “opted in” and shall be required to file all future statements electronically using the City Clerk’s system. On the other hand, any committee who wishes to continue to paper-file may “opt-out” of the electronic filing system by filing all original statements with the City Clerk. Should a committee choose to only paper-file, the City Clerk will continue to accept such reports until the committee “opts-in”. There are many advantages to allowing electronic filing of disclosure documents. By shifting to an electronic system, the public can directly access most campaign statements and Honorable City Council November 18, 2020 Page 3 of 3 Statement of Economic Interests. The system is also beneficial to the filer by providing multiple prompts to ensure timely filing, by storing previous statements for user ease and by permitting a single filing for multiple offices. Public access to campaign disclosure information is a vital and integral component of a fully- informed electorate. Transparecy in campaign financing is critical in order to maintain public trust and support of the political process. The City Council is requested to adopt Ordinance No. 20-1050 (Attachment “A”) to make the necessary findings and adopt regulations allowing for the electronic and paperless filing of campaign statements and economic disclosure statement. CITY STRATEGIC GOALS: Adoption of the proposed ordinance would further the City Strategic Goals of Good Governance. FISCAL IMPACT: There would be no fiscal impact to the Fiscal Year 2020-21 City Budget. ATTACHMENT: 1. Ordinance No. 20-1050 ORDINANCE NO. 20-1050 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMPLE CITY, ADDING SECTION 2-1-8 TO CHAPTER 1 “CITY COUNCIL”, TITLE 2 “ADMINISTRATION” OF THE TEMPLE CITY MUNICIPAL CODE REGARDING ELECTRONIC AND PAPER METHODS OF FILING CAMPAIGN FINANCE DISCLOSURE STATEMENTS AND THE STATEMENT OF ECONOMIC INTEREST WHEREAS. California Government Code Section 84615 provides that a legislative body of local government agency may adopt an ordinance that requires an elected officer, candidate, committee, or other person required to file statements, reports or other documents required by Chapter 4 of the Political Reform Act, except those whose contributions and expenditures each total less than two thousand dollars ($2,000) in a calendar year, to file such statements, reports, or other documents online or electronically with the City Clerk. WHEREAS. The City wishes to enter into an agreement with a vendor approved by the California Secretary of State, to provide an online electronic filing system (System) for campaign disclosure statements and statement of economic interest forms but must have said ordinance in place before any such agreement may be executed. WHEREAS. The System will operate securely and effectively and will not unduly burden filers. Specifically: (1) the System will ensure the integrity of the data and includes safeguards against efforts to temper with, manipulate, alter, or subvert the data; (2) the System will only accept a filing in the standardized record format developed by the Secretary of State and compatible with the Secretary of State’s system for receiving an online or electronic filing; and (3) the System will be available free of charge to filers and to the public for viewing filings. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TEMPLE CITY DOES ORDAIN AS FOLLOWS: SECTION 1. Section 2-1-8 (Electronic Filing of Campaign Statement) is added to Chapter 1 (City Council) Title 2 (Administration) to read as follows: “Section 2-1-8 Electronic Filing of Campaign Disclosure Statements and Statement of Economic Interest. (a)Any elected officer, candidate, committee, or other person required to file statements, reports or other documents described by Chapter 4 (Campaign Disclosure) of Title 9 (Political Reform) of the California Government Code, and that has received contributions and made expenditures of $2,000 or more, may electronically file such statements using procedure established by the City Clerk. Once an elected officer, candidate, committee, or other person files a statement, report, or other document electronically pursuant to subsection (a), all future statements, reports, or other documents on behalf of that filer shall be filled electronically. (b)Any person holding a position listed in Government Code Section 82700 or designated in the City’s conflict of interest code adopted pursuant to Government Code Section 83700, shall file any required Statement of Economic interest report form (Form 700) online or electronically with the City Clerk. (c)An elected officer, candidate, committee or other person may choose not to use the electronic filing system by filling all original statements, reports, forms, or other documents in paper format with the City Clerk, until such time as the City Council ATTACHMENT A Ordinance No. 20-1050 Page 2 of 3 Or determines that electronic filing is mandatory for all filers. (d) In any instance in which an original statement, report, or other document must be filed with the California Secretary of State or other agency, and a copy of that document is required to be filed with the City Clerk, the filer may electronically file a copy with the City Clerk, or may file in a paper format. (e) If, for technical reasons, the City’s electronic filing system is not capable of accepting a particular type of statement, report, or other document, an elected officer, candidate, committee, or other person shall file that document with the City Clerk in paper format. (f) The City Clerk shall ensure that the City’s system makes all electronically-filled statements, reports, forms, or other documents available on the internet free of charge and as soon as possible after receipt/deadline. The data made available on the internet shall not contain the street name of the persons or entity representatives listed on the electronically filed forms or any bank account number required to be disclosed by the filer. The City Clerk’s office shall also make a complete, un- redacted copy of the statement, report, form, or other document available to the Fair Political Practices Commission for Government Code Section 87200 filers. (g) The City Clerk’s office shall maintain records according to the City’s records retention schedule and applicable State law commencing from the date filed, a secured, official version of each online or electronic statement, report, form, or other document, which shall serve as the official version of that record. (h) The City Clerk is authorized to adopt such administrative policies and procedures as deemed necessary to implement this section. SECTION 2. The City Clerk shall certify to the adoption of this Ordinance and cause the same to be published as required by law. PASSED, APPROVED, AND ADOPTED this xx day of December, 2020. ________________________ Tom Chavez, Mayor ATTEST: APPROVED AS TO FORM: ________________________ _______________________ Peggy Kuo, City Clerk Greg Murphy, City Attorney I, Peggy Kuo, City Clerk of the City of Temple City, hereby certify that the foregoing Ordinance No. 20-xxx was introduced at the regular meeting of the City Council of the City of Temple City held on the 4th day of November 2020, its second reading on the xxth day of December 2020, and was duly passed, approved and adopted by said Council at the regular meeting held on the xxth day of December 2020 by the following vote: AYES: Councilmember – Ordinance No. 20-1050 Page 3 of 3 Or NOES: Councilmember – ABSENT: Councilmember – ABSTAIN: Councilmember – ________________________ Peggy Kuo, City Clerk