ITEM: 5. 3
CITY MANAGER' S REPORT
MAY 16, 2022 CITY COUNCIL SPECIAL MEETING
ITEM: PUBLIC HEARING ( PUBLISHED NOTICE) TO
CONSIDER AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF LATHROP APPROVING ELECTRONIC
AND PAPERLESS FILING OF FAIR POLITICAL
PRACTICES COMMISSION DISCLOSURE CAMPAIGN
STATEMENTS & STATEMENTS OF ECONOMIC
INTEREST FORMS
RECOMMENDATION: The Council to Consider the Following:
1. Hold a Public Hearing; and
2. First Reading and Introduction of an Ordinance
Amending Title 2 " Administration And Personnel"
of the Lathrop Municipal Code by Adding New
Chapter 2. 60 Titled ' Electronic Filing" to Accept
Electronic and Paperless Filing of Fair Political
Practices Commission Disclosure Campaign
Statements & Statements of Economic Interest
Forms
SUMMARY:
The Political Reform Act requires public agencies to file various reports or statements, such as the Statement of Economic Interests ( Form 700), and periodic campaign statements for employees and elected officials, such as the Recipient Committee Campaign Statement ( Form 460). These documents are required to be available for public inspection and reproduction under the Public Records Act. Cities have previously had discretion to post such records online, but state law now mandates online access to these filings in order to increase public access to campaign finance documents.
To increase efficiency and facilitate compliance with State Law and Fair Political Practices Commission ( FPPC) regulations, staff is asking Council to consider an ordinance mandating electronic and paperless filing of FPPC campaign disclosure statements and statements of economic interest pursuant to Government Code Section 84615.
BACKGROUND:
Political Reform Act ( Gov. Code § 84100)
The California Political Reform Act ( Gov. Code § 84100) requires the filing of Campaign Disclosure Statements by any person or combination of persons who will be raising or spending money in local elections, including but not limited to local candidates for elective office, or those supporting or opposing local candidates or ballot measures. It also requires all elected and appointed officials and designated employees to file Statements of Economic Interest with either the FPPC or the local filing officer. In the City of Lathrop, the Filing Officer is the City Clerk.
CITY MANAGER' S REPORT Page 2
MAY 16, 2022 CITY COUNCIL SPECIAL MEETING
PUBLIC HEARING TO CONSIDER ORDINANCE APPROVING ELECTRONIC FILING
Since the enactment of the Political Reform Act of 1974, candidates and committees have complied with filing requirements by filing paper copies of campaign statements and reports. The Political Reform Act of 1974 requires that all reports and statements filed under this title shall be signed under penalty of perjury and verified by the filer" Government Code section 81004). For paper filings, those signatures must be original, wet" signatures.
Assembly Bill ( AB) 2452 ( Political Reform Act of 1974: online disclosure.) On January 1, 2013, AB 2452 went into efFect adding Government Code section 84615 of the Political Reform Act of 1974, which requires specified candidates, committees, slate mailer organizations, and lobbyists, lobbying firms, and lobbyist employers to le campaign statements and reports online or electronically with the Secretary of State, as specified. The act requires certain of these entities to also file campaign statements and reports with local filing officers, as specified.
This bill also authorizes a local government agency to require online or electronic filing for an elected officer, candidate, committee, or other person who is required to file statements, reports, or other documents under the Political Reform Act, so long as the filer receives contributions or makes expenditures totaling two thousand dollars ($ 2, 000) or more in a calendar year ( FPPC Campaign Regulations).
Since passage, many local government agencies throughout California have chosen to enact paperless filing as a
courtesy to their campaign filers, to increase stafF
efficiency, and to help reduce the use of paper. Further, the FPPC supports and encourages efforts to move from a paper-based reporting system to a more transparent electronic system.
Assembly Bill 571 ( Political Reform Act of 1974: contribution limits.) On January 1, 2021, AB 571 went into effect, setting default candidate contribution limits for city and county offices. In an efFort to combat corruption/ bribery, or the appearance of, Assembly Bill 571 created identical campaign contribution limits to those imposed on certain elective state office candidates for county or city offices.
In passing AB 571, the California Legislature noted that the vast majority of counties and cities in the State did not have independently imposed local campaign contributions, although they maintained the local authority to do so. AB 571 was meant to reduce the frequency in which local candidates raise substantial campaign funds from a single contributor. It also aimed to stop systems that allow local candidates to, ironically, exceed contribution limits in place for elective state officeholders who have more constituents.
CITY MANAGER' S REPORT Page 3
MAY 16, 2022 CITY COUNCIL SPECIAL MEETING
PUBLIC HEARING TO CONSIDER ORDINANCE APPROVING ELECTRONIC FILING
The contribution limit that will now apply to city and county candidates pursuant to AB 571 is updated biennially for inflation. Contribution limits can be found in Regulation 18545( a) 2 and on the FPPC website' s FPPC Regulations page https•// www fppc ca gov/ the- law/ fppc- regulations/ regulations- index html). The default limit for contributions to city and county candidates subject to AB 571 for 2021- 2022 is set at $ 4, 900 per election.
Assembly Bill 2151 ( Political Reform Act of 1974: online filing and disclosure system.)
On September 28, 2020, Governor Newsom signed AB 2151 into law, which requires public agencies to post all copies of the required filings on its website within 72 hours of the applicable filing deadline. If the final day of the 72- hour period is a Saturday, Sunday or holiday, the period is extended to the next day that is not a Saturday, Sunday or holiday. The required filings must be made available for four years from the election date associated with the filing. Once the City publishes the required filings on its website, it must redact the street name, building number and bank account information for any campaign donor ( person or entity) named on the required filings.
This new law took effect on January 1, 2021.
City of Lathrop is currently a paper- filing agency for statutory Fair Political Practices Commission ( FPPC) campaign disclosure forms. Appointed officials, City Council candidates, and campaign committees may file their statements in hard copy form only, with an original signature, per FPPC regulations. The changes under AB 2151 have added an additional amount of time for staff to implement redactions of appropriate information on disclosure statements and to post to the City website within the 72 hour required timeframe.
Benefits of Electronic Filing
There are additional benefits to electronic statement filings:
Paperless electronic filing is allowed pursuant to Government Code 84615 Electronic filing makes is easier for filers to comply with reporting obligations The program will be offered at no expense to filers
It will help to ensure consistency with candidate filings Ensures integrity and safeguarding of the data transmitted Filings will have a professional appearance and include quality control checks to ensure that no required entries are missed
Provides the public with information in a more accessible and consistent format.
Statements would post timely to the City' s website
CITY MANAGER' S REPORT Page 4
MAY 16, 2022 CITY COUNCIL SPECIAL MEETING
PUBLIC HEARING TO CONSIDER ORDINANCE APPROVING ELECTRONIC FILING
Staff will continue to provide assistance for those filers who cannot file electronically under certain circumstances and accommodate American with Disabilities Act ( ADA)
Less paper being printed and handled, a change consistent with the State' s and City' s waste reduction goals.
In the event that a filer does not possess the equipment to file electronically, the Government Services / City Clerk Department will work with the filer to obtain access to the City' s electronic filing system.
Requirements of the Law for Electronic Filing
The law prescribes criteria that must be satisfied by a local government agency to require online or electronic filing of statements, reports, or other documents, which include the following:
The system must ensure the integrity of the data and include safeguards against efforts to tamper with, manipulate, alter or subvert the data; The system must 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 The system must be available free of charge to filers and to the public for viewing filings.
REASON FOR RECOMMENDATION:
If Council approves the proposed Ordinance, the City will be using the paperless electronic system, known as eDisclosure Docs offered by Granicus. The FPPC is the authority for approving and certifying electronic filing systems for Statements of Economic Interests ( Form 700). Granicus is an approved vendor of the FPPC.
Granicus is currently providing disclosure document software to the city and the release of the campaign disclosure module is next step in the process. The FPPC approved the City of Lathrop for electronic filing in December 2021.
Per California Government Code Section 84615, local jurisdictions may require the filing of campaign statements and reports solely in an electronic form and must adopt an ordinance to specify this requirement. However, the Statement of Economic Interests ( Form 700) electronic filing component does not require an ordinance by law to implement. However, it is recommended the City Council also adopt electronic filing of the Form 700 by ordinance to remain consistent with filing requirements.
CITY MANAGER' S REPORT Page 5
MAY 16, 2022 CITY COUNCIL SPECIAL MEETING
PUBLIC HEARING TO CONSIDER ORDINANCE APPROVING ELECTRONIC FILING
FISCAL IMPACT:
The City entered into a professional services agreement between the City and Granicus to provide professional services related to electronic filing, configuration and implementation on October 11, 2021, in the amount of $ 15, 717. The annual subscription and maintenance cost is approximately $ 4, 985. Software solutions included in the agreement are: DisclosureDocs/ Conflict of Interest ( Form 700), CampaignDocs ( Form 460/ 470), and Ethics and Sexual Harassment mandated tracking and training.
ATTACH M E NTS:
A. Ordinance Approving Amending Title 9 " Public Peace and Welfare" of the Lathrop Municipal Code by Adding New Chapter 2. 60 Titled " Electronic Filing" to Accept Electronic and Paperless Filing of Fair Political Practices Commission Disclosure Campaign Statements & Statements of Economic Interest Forms
CITY MANAGER' S REPORT Page 6
MAY 16, 2022 CITY COUNCIL SPECIAL MEETING
PUBLIC HEARING TO CONSIDER ORDINANCE APPROVING ELECTRONIC FILING
APPROVALS•
1% v
T resa argas Date
vernment Services irector
City Clerk
Cari Date
Finance ir ctor
S/ c .-
Salvador Navarrete Date
City Attorney
s s-2zSte en J. Salvatore Date
City Manager
ORDINANCE NO. 22-
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LATHROP AMENDING TITLE 2 ADMINISTRATION AND PERSONNEL" OF THE LATHROP MUNICIPAL CODE BY ADDING NEW CHAPTER 2. 60 TITLED ELECTRONIC FILING" TO
ACCEPT ELECTRONIC AND PAPERLESS FILING OF FAIR POLITICAL
PRACTICES COMMISSION DISCLOSURE CAMPAIGN STATEMENTS &
STATEMENTS OF ECONOMIC INTEREST FORMS
WHEREAS, the City of Lathrop finds that public access to campaign disclosure information is a vital and integral component of a fully informed electorate; and WHEREAS, transparency in campaign financing is critical in order to maintain public trust and support of the political process; and
WHEREAS, since the enactment of the Political Reform Act, candidates and committees have complied with filing requirements by filing paper copies of campaign statements and reports; and
WHEREAS, the City of Lathrop City Clerk' s Office has expended a significant amount of staff time to make such paper filings readily available to the public; and WHEREAS, in July 2012, the California Legislature approved Assembly Bill 2452 which authorizes local jurisdictions to require the filing of campaign statements and reports solely in an electronic format; and
WHEREAS, the Governor approved the legislation on July 13, 2012, and it took efFect on January 1, 2013.
WHEREAS, Government Code Section 84615 currently provides that a local agency may adopt an Ordinance to require 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 ( commencing with Section 84100 of the Government Code), except an elected officer, candidate, committee, or other person who receives contributions totaling less than $ 2, 000 and who makes independent expenditures totaling less than $ 2, 000 in a calendar year, to file those statements, reports, or other documents online or electronically with the local filing officer; and WHEREAS, the City of Lathrop has entered into an agreement with Granicus, a vendor approved by the California Secretary of State, to provide an online electronic filing system (" System") for campaign disclosure statements and statements of economic interest forms; and
WHEREAS, Pursuant to California Government Code section 84615, the City of Lathrop hereby finds that the online or electronic filing system will facilitate the efficient and secure filing of required campaign reports and statements of economic interest forms; and
Ordinance No. 22-
WHEREAS, the System will operate securely and efFectively and will not unduly burden filers; and
WHEREAS, the System will ensure the integrity of the data and includes safeguards against efforts to tamper with, manipulate, alter, or subvert the data; and WHEREAS, 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 WHEREAS, the System will be available free of charge to filers and to the public for viewing filings; and
WHEREAS, the City of Lathrop desires to amend Title 2 " Administration and Personnel" of the Lathrop Municipal Code by Adding New Chapter 2. 60 Titled Electronic Filing" to Accept Electronic and Paperless Filing of Fair Political Practices Commission Disclosure Campaign Statements & Statements Of Economic Interest Forms
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Lathrop does hereby ordain as follows:
Section 1.
Title 2 of the Lathrop Municipal Code, titled Administration and Personnel" is hereby amended by adding new Chapter 2. 60 titled " Electronic Filing", to read in its entirely as follows:
CHAPTER 2. 60 Electronic Filling
2. 60. 010 Electronic filing of campaign statements and statements of economic interest.
A. Whenever any elected officer, candidate, committee or other person is required to file campaign statements, reports or other related documents required by the Political Reform Act ( Title 9 of the Government Code), shall file such documents online or electronically with the City Clerk, unless exempt from the requirement to file online pursuant to Government Code Section 84615, because the elected officer, candidate, committee or other person receives contributions totaling less than two thousand dollars ($ 2, 000), and makes expenditures totaling less than two thousand dollars ($ 2, 000) in a calendar year.
B. The provisions of this subsection shall apply to persons or combinations of persons who qualify as a committee under Section 82013 of the Political Reform Act.
Ordinance No. 22-
C. The provisions of this subsection shall also apply to any person holding a position listed in Government Code Section 82700 or designated in the City' s local conflict of interest code adopted pursuant to Government Code Section 83700, and shall file any required statement of economic interest reports ( Form 700) electronically with the Clerk / Local Filing Officer.
D. The date of filing for a statement, report, or other document that is filed online or electronically shall be the day that it is received by the City Clerk / Local Filing Officer, and the electronic system will confirmation with a timestamp that ensuring that the statement, report, or other document was received.
E. Filings set forth in Subsections A and B of this Section, which are filed and received electronically with the City Clerk are not required to also be filed with the City Clerk in paper format. An electronic filing will be the official record of such filing. Filers must sign electronic filings in the system under penalty of perjury.
F. In any instance in which an original statement, report or other document must be filed with the California Secretary of State and a copy of that statement, report or other document is required to be filed with the City Clerk, the filer may, but is not required to, file the copy electronically.
G. If the City Clerk' s electronic 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 an alternative format.
H. If access to online filings has not been prescribed in a timely manner, the elected city officer, candidate, or committee may file an original statement by paper, at the discretion of the City Clerk / Local Filing Officer.
I. While electronic filing of statements will be mandated under this Ordinance, the City Clerk / Local Filing Officer, will have the right to accept a paper filing in lieu of an electronic filing at the City Clerk' s discretion, in instances where indigency or a catastrophe prevent electronic filing, and to accommodate an Americans with Disabilities Act ADA) request.
Once a candidate or committee is subject to the electronic filing requirements imposed by this Chapter, the candidate or committee will remain subject to the electronic filing requirements until the candidate or committee files a termination statement pursuant to the Political Reform Act.
Ordinance No. 22-
Section 2.
This Ordinance is not intended to and shall not be construed or given effect in a manner that imposes upon the City or any officer or employee thereof a mandatory duty of care toward persons and property within or without the city so as to provide a basis of civil liability for damages, except as otherwise imposed by law.
Section 3. Severabilitv.
If any section, subsequent subdivision, paragraph, sentence, clause or phrase of this Ordinance is for any reason held to be unconstitutional or otherwise invalid, such a decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance irrespective of the unconstitutionality or invalidity of any section, subsection, subdivision, paragraph, sentence, clause or phrase.
Section 4. Effective Date.
This Ordinance shall take legal effect 30 days from and after the date of its passage.
Section 5. Publication.
Within fifteen days of the adoption of this Ordinance, the City Clerk shall cause a copy of this Ordinance, to be published in full accordance with Section 36933 of the Government Code.
Ordinance No. 22-
THIS ORDINANCE was introduced at a meeting of the City Council of the City of Lathrop on the 16t'' day of May 2022, and was PASSED AND ADOPTED at a regular meeting of the City Council of the City of Lathrop on the day of 2022, by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Sonny Dhaliwal, Mayor
ATTEST: APPROVED AS TO FORM:
Teresa Vargas, City Clerk Salvador Navarrete, City Attorney Ordinance No. 22-