Agenda #: 7.1
Meeting Date: May 17, 2022
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Fox, City Manager
TITLE: ORDINANCE NO. 02 (2022) REGARDING ELECTRONIC FILING OF
CAMPAIGN DISCLOSURE STATEMENTS AND STATEMENTS OF
ECONOMIC INTEREST.
STRATEGIC
GOAL: Open, Engaged & Responsive Government
RECOMMENDATION:
Introduce first reading by title only, waive full reading of Ordinance No. 02 (2022) entitled, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR, CALIFORNIA, ADDING CHAPTER 2.06 TO TITLE 2 OF THE DIAMOND BAR
MUNICIPAL CODE REGARDING ELECTRONIC FILING OF CAMPAIGN
DISCLOSURE STATEMENTS AND STATEMENTS OF ECONOMIC INTEREST”, and, schedule the second reading and adoption at the next regularly scheduled City Council meeting.
FINANCIAL IMPACT:
The annual fee for the web-based, vendor hosted application system will be $4,300 and it is budgeted in the City Clerk’s Office.
BACKGROUND:
In 2020, the State Legislature adopted Assembly Bill (AB) 2151, which added Government Code 84616 expanding on electronic filing and disclosure requirements effective January 1, 2021. AB 2151 requires campaign disclosure statements to be uploaded to an agency’s website within 72 hours of the applicable filing deadline with specific information from each filing redacted for privacy. The documents are to be made available online for four years from the date of the election associated with the filing and retained for a total of 10 years for non-incumbents or permanently for elected officials. City Clerk staff has met this mandate thus far by scanning, redacting and uploading files to the City’s Online Records Library.
ANALYSIS:
Government Code 84615 provides for local government agencies to allow an elected and appointed official, candidate, or committee to file campaign statements, reports, or other documents required by Fair Political Practices Committee (FPPC) regulations electronically with a local filing officer through the adoption of an ordinance. This section also stipulates that any system used to manage electronic filings must operate securely and effectively, be at no cost to filers, be available to the public to view filings and include procedures for filers to comply with the requirement that they sign statements and reports under penalty of perjury.
An online or electronic filing system shall only accept a filing in the standardized record format that is developed pursuant to GC 84602(2)(a) and compatible with the Secretary of State’s system for receiving an online or electronic filing. There are many advantages to allowing electronic filing disclosure documents. For example, shifting to an electronic system would allow the public direct online access to campaign documents and Statements of Economic Interests. The system also provides the filer multiple prompts to ensure timely filing, stores previous statements for user ease when completing subsequent filings, and permits a single filing for multiple offices.
The City will be entering into a service agreement with NetFile, a vendor approved by the California Secretary of State, to provide an online electronic filing system for campaign disclosure statements and statements of economic interest forms. Netfile works with more than 170 local governments in California and is highly recommended by its clients. The Netfile system was created specifically for cities and counties responsible for administering campaign finance filings and Statement of Economic Interest filings. The software includes several public viewing portal features not available from other software providers. Netfile is able to receive uploaded data from certain types of third-party applications for electronic filing purposes. Training is provided at no additional charge to the agency and filers.
In terms of security, the Netfile system uses industry best practices for securing data, using the same data encryption for online filings that is used by banks for online banking. Netfile stores and backs up data at three separate locations, creating the essential safety measures and redundancy that will allow for recovery of information in the event of an emergency or disaster. The City’s data would be retained for the required minimum 10-year period.
The proposed ordinance would comply with AB 2151 and add Chapter 2.06 to the Diamond Bar Municipal Code regarding electronic filing of Campaign Disclosure Statements and Statements of Economic Interest.
LEGAL REVIEW:
The City Attorney has reviewed and approved the Ordinance as to form.
PREPARED BY:
REVIEWED BY:
Attachments:
1. 7.1.a Ordinance No. 02 (2022)