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Item 5 - Intro of Ordinance Amending Ch 2.28 to Title 2 of PMC Relating to Electronic FPPC Economic Interest & Campaign Disclosure StatementsSeptember 19, 2023, Item #5DATE: TO: FROM: CONTACT: SUBJECT: Summary: AGENDA REPORT CityofPoway September 19, 2023 Honorable Mayor and Members of the City Council Carrie Gallagher, City Clerk Carrie Gallagher, City Clerk (858) 668-4535 or cgallagher@poway.org CITY COUNCIL Introduction of an Ordinance Amending Chapter 2.28 to Title 2 of the Poway Municipal Code Relating to Electronic Filing of Fair Political Practices Commission (FPPC) Statements of Economic Interest, Form 700; and Campaign Disclosure Statements Since the passage of the Political Reform Act (PRA), candidates and political action committees have complied with filing requirements by filing paper copies of campaign financial disclosure statements and reports. These forms are filed with the City Clerk as the Local FIiing Officer/Elections Official. The proposed ordinance is required in order for the City of Poway to accept electronic filings of Fair Political Practices Commission (FPPC) Form 700 "Statement of Economic Interest" and campaign disclosure forms. Recommended Action: It is recommended the City Council introduce the Ordinance for first reading by title only, waive further reading, and schedule the adoption of the Ordinance for the October 3, 2023 Regular City Council meeting. Piscussjon: On January 1, 2013, Assembly Bill 2452 went into effect adding Government Code 84615 of the PRA, allowing 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, reports1 or other documents under the PRA. On September 28, 2020, Assembly Bili 2151 passed, requiring local government agencies to post on their 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 paper format. FPPC Form 700 and Campaign Disclosure Statement Forms 460 and 470 are Included in the specified statements. 1 of7 September 19, 2023, Item #5The City Clerk's Office is currently responsible for the annual paper filing of approximately 170 Form 700s, which include the City Council, Committee members, City Manager, City Clerk, City Treasurer, designated City employees, and consultants. In addition, the City Clerk is also responsible for all local elections fl lings. On June 13, 2023, City Council approved the Fiscal Year 2023-24 Operating Budget, which Included funds for NetFlle, an electronic filing system for Form 700 and Campaign Disclosure filings. The NetFile system Is created specifically for cities responsible for administering campaign finance filings and Statements of Economic Interest, which meets the requirements of the Secretary of State and allows for electronic and paperless filing of several types of required FPPC forms Including Forms 460,470, 496 and 497, which are the most commonly used in Poway's local election campaigns. The current manual process requires a significant amount of staff time to scan, redact necessary Information and upload the large volume of submitted reports. The new electronic filing system will allow filers to create an account and file their Campaign Disclosure or Form 700s with the City of Poway providing ease-of-use for fliers to upload forms that will be securely filed away through a streamlined hosted system, saving staff time and resources, and increasing transparency and on line access to statements. In order to implement the provisions of Government Code Section 84615 and Assembly Bill 2452, the City must adopt an Ordinance permitting the use of an on line filing system as an option for filing and designating the fiiings received electronically by the City Clerk's Office as the filings of record for the City. The system must operate securely and effectively, be of no cost to filers, be available for the public to view filings, and not place an unduly burden on filers. Beginning January 1, 2024, electronic filing will be mandatory unless the officer, candidate, or committee is exempt from the requirement to file online pursuant to Government Code Section 8461 S(a). Environmental Review: This action is not subject to review under the California Environmental Quality Act (CEQA). fiscal Impact: There is no fiscal Impact associated with the recommended action. However, the adopted FY 2023-24 Operating Budget includes $7,500 to purchase and host the NetFile system and an annual service rate of $7,500 going forward to maintain the electronic flllng system. Public Notification: None. Attachments: A Proposed Ordinance -Electronic and Paperless Filing of FPPC Campaign Disclosure Statements 2 af7 September 19, 2023, Item #5Reviewed/Approved By: Assistant City Manager 3of7 Reviewed By: Alan Fenstermacher City Att,orney Approved By: Ch~ City Manager ORDINANCE NO, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA, AMENDING CHAPTER 2.28 TO TITLE 2 OF THE POWAY MUNI CIPAL CODE RELATING TO ELECTRONIC AND PAPERLESS FILING OF FAIR POLITICAL PRACTICES COMMISSION (FPPC) CAMPAIGN AND S'TATEMENT OF ECONOMIC INTEREST DISCLOSURE INFORMATION WHEREAS, City staff and the City Attorney's Office have been progressively analyzing the Poway Municipal Code ("PMC") and recommending updates where appropriate; WHEREAS, public access to campaign and Statement of Economic Interest disclosure information is an integral component of a fully informed electorate, and transparency is critical in order to maintain public trust and support of the political process; WHEREAS, Assembly Bill 2452 allows local government agencies 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 of 1974; WHEREAS, the City Clerk is the Local Filing Officer for FPPC disclosure statements and is responsible for receiving, reviewing, and making available campaign disclosure statements; WHEREAS, implementation of electronic filing and FPPC campaign disclosure statements helps the City reach its goal of operational excellence by allowing campaign disclosure statements to be filed electronically, streamlining the disclosure and filing process and saving resources as well as increasing transparency and online access to statements; and WHEREAS, In order to implement the provisions of Government Code Section 846 15 and Assembly Bill 2452, the City must adopt an Ordinance permitting the use of an online filing as an option for filing and designating the filing received electronically by the City Clerk's Office as the flings of record for the City. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF POWAY DOES ORDAIN AS FOLLOWS: SECTION 1: The above recitations are true and correct. SECTION 2: Section 2.28.040 (Statements Generally) of the PMC is hereby amended to read as follows (additions in underline): 4of7 Subject to Government Code Section 81009.5, each candidate and each committee, including all independent committees, shall file as a public record with the City Clerk ca mpaign statements showing the amounts of contributions received and expenditures made with respect to such election at the time required by the Political Reform Act of 197 4, as amended. Statements shall be filed electronically in the manner set forth in Sections 2.28.11 0 1hrough 2.28.130 of this Chapter 2.28. ATTACHMENT A September 19, 2023, Item #5 Ordinance No Page2 SECTION 3: Sections 2.28.110 through 2.28.130 are hereby added to Chapter 2.28 of the PMC as follows; Sof7 2.28.110 ELECTRONIC FILING OF CAMPAIGN DISCLOSURE STATEMENTS 1. Any elected officer, candidate, committee, or other person required to file statements, reports, or other documents (''statements") as required by Chapter 4 of the Political Reform Act (California Government Code Section 84100 et seq.) ('(filers'') must file such statements using the City Clerk's online system according to procedures established by the City Clerk (the "procedures") effective January 1, 2024 unless exempt from the requirement to file online pursuant to Government Code Section 8461 S(a) because the officer, candidate, or committee receives less than $250 in contributions and makes less than $250 in expenditures in a calendar year. 2. The City Clerk shall have the authority to establish and amend the procedures, as necessary, to accomplish the following: a. Ensure that the online system complies with the requirements set forth in Section 84615 of the Government Code, as may be amended from time to time; b. Meet the-purpose and intent of this section and comply with other applicable law; and c. Ensure the integrity of the data transmitted and include safeguards against efforts to tamper with, manipulate, alter, or subvert the data. 3. Online filings made under this chapter will only be accepted if made in the standardized record format that is developed by the California Secretary of State pursuant to Section 84602(a)(2) of the California Government Code, as may be amended from time to time, and that Is compatible with the Secretary of State's system for receiving an online or electronic filing. 2.28.120 PROCEDURES FOR UTILIZING ONLINE FILING 1. Effective January 1, 2024, electronic filing is mandatory unless the officer, candidate, or committee is exempt as described in Section § 2.28.110. Once the elected officer, candidate, or committee has filed electronically, all subsequent Statements shall be flied electronically. 2. Any elected officer, candidate, or committee who has electronically filed a statement using the City Clerk's online system is not required to file a copy of that document in paper format with the City Clerk. 3. The City Clerk shall Issue an electronic confirmation that notifies the flier that the Statement was received, which notification shall include the date and the time that the Statement was received and the method by which the filer may view and ptlnt the data received by the City Clerk. The date of filirig for a Statement filed online shall be the day that is received by the City Clerk. September 19, 2023, Item #5 Ordinance No Page 3 4. If the City Clerk's system is not capable of accepting a Statement due to technical difficulties, an elected officer, candidate, or committee shall file that Statement in paper format with the City Clerk. 5. The online filing system shall enable electronic filers to complete and submit filings free of charge. 2.28.130 AVAILABILITY OF STATEMENTS FOR PUBLIC REVIEW; RECORD RETENTION 1. The City Clerk's system shall make all the data filed available on the City's webpage in an easily understood format that provides the greatest public access. The data shall be made available free of charge and as soon as possible after receipt. The data made available on the City's webpage shall not contain the street name and building number of the persons or entity representatives listed oh the electronically filed forms or any bank account number required to be disclosed by the filer. The City Clerk's office shall make a complete, unredacted copy of that statement, including any street names, building numbers, and bank account numbers disclosed by the filer, available to any person upon request. 2. The City Clerk's office shall maintain, for a period of at least 10 years commencing for the date filed, a secured, official version of each online or electronic statement which shall serve as the official version of that record for purpose of audits and any other legal purpose. SECTION 4: If any provisions of this Ordinance or the application thereof to any person or circumstances is held invalid, that invalidity shall not affect other provisions or applications of the act which can be given effect without the invalid provisions or application, and to this end the provisions of thls act are severable. SECTION 5: The online filing system shall include a procedure for filers to comply with the requirement that they sign statement and reports under penalty of perjury pursuant to Section 81004 of the Government Code_ SECTION 6: This Ordinance shall be codified. EFFECTIVE DATE: This Ordinance shall take effect and be in force thirty (30) days after its adoption. CERTIFICATION/PUBLICATION: The City Clerk shall certify the adop1ion of this Ordinance and cause it, or a summary of it, to be published with the names of the City Council members vot1ng for and against the same in the Poway News Chieftain, a newspaper of general circulation in the City of Poway within fifteen (15) days after its adoption and shall post a certified copy of this Ordinance in the Office of the City Clerk in accordance with Government Code § 36933. INTRODUCED AND FIRST READ at a Regular Meeting of the City Council of the City of Poway held the 19th day of September, 2023, and thereafter. 6 of7 September 19, 2023, Item #5 Ordinance No Page4 PASSED AND ADOPTED at a Regular Meeting of said City Council held the 3rd day of October 2023, by the following vote, to wit AYES: NOES: ABSTAINED: ABSENT: DISQUALIFIED: Steve Vaus, Mayor ATTEST: Carrie Gallagher, CMC, City Clerk 7 of7 September 19, 2023, Item #5