CC 2020-07-14_11b Introduce Ordinance_FPPC Electronic Filing_PP
Proposed Ordinance Relating to Electronic Filing and Administration of Fair Political Practices Commission (FPPC) Campaign Statements and Statements of Economic Interests
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Background
In 2013, Assembly Bill 2452 went into effect adding Government Code section 84615 which allows a local government agency to mandate 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, unless exempt from the requirement to file online*.
Since passage, many agencies have implemented paperless filing.
*those who receive or expend less than $2,000 in a calendar year
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Background
For the City of Arroyo Grande to accept electronically filed campaign statements, the City Council must adopt an ordinance requiring the use of an online filing system.
Form 700 (Statement of Economic Interests) electronic filing does not require an ordinance by law, but is recommended to ensure compliance with timely filing and improve accuracy in
filed statements.
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Background
The law prescribes criteria that must be satisfied by a local government agency to require online or electronic filing, including: a system containing multiple safeguards to protect
the integrity and security of the data; a system that only accepts a filing in the format developed by the Secretary of State; and that the system be available free of charge to filers
and to the public for viewing filings.
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Analysis
The City Clerk currently receives all campaign statements and Form 700 from filers in paper format and is responsible for the tracking, reviewing, redacting, scanning, storing, and making
the documents available for public review.
To increase efficiency for filers and staff, decrease paper use, filing, and storage, and increase transparency to the public, implementation of an electronic filing system is recommended
and is strongly encouraged by the Fair Political Practices Commission
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Analysis
Earlier this year, the City Clerk received a proposal for NetFile’s Campaign Disclosure and Form 700 e-filing system at a 15% promotional discount.
Due to COVID-19 and associated financial constraints facing cities, NetFile has since offered to provide its system to cities at no cost for up to 15 months, and with no set-up fees.
Following the first year, NetFile will honor the original proposal for a five-year period ($3,570/year).
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Analysis
NetFile offers additional features and services not offered by other vendors, including the ability for Form 700 filers to file across several jurisdictions through one log-in point;
various public viewing portals; free unlimited training; a mobile app for Form 700 filers; as well as tracking modules for ethics and harassment prevention training, which are State
mandated requirements for elected officials and staff.
Security – system data is encrypted, backed up, and retained for the required minimum 10-year period.
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Analysis
Efficiency – all manual processes currently performed by the City Clerk (accepting, scanning, redacting, uploading, auditing, filing, maintaining) would be automated, resulting in considerable
time savings for the filer and staff; in addition, electronic filing has shown to increase compliance and timely filing, and a decrease in errors or omissions due to system guidance
as forms are completed.
Transparency – system incorporates a public portal available on the City website, providing 24-hour access to statements in real-time as soon as they are submitted by the filer.
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Analysis
Training – extensive one-on-one training will be provided with Form 700 filers, as well as candidates and treasurers during elections and post-election.
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Conclusion
All FPPC forms are public records. By shifting to an electronic filing system, it will make it easier for officials to comply with reporting obligations and will provide the public with
information in a more accessible and consistent format. Transitioning to electronic filing is strongly encouraged by the FPPC, and will result in less paper being printed and handled,
a change consistent with the City’s ongoing goal to reduce paper file storage.
The proposed electronic filing system will operate securely and effectively and would not unduly burden filers.
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Recommendation
It is recommended the City Council introduce the Ordinance adding Chapter 2.06 (Electronic Filing) to Title 2 (Administration and Personnel) of the Arroyo Grande Municipal Code Relating
to Electronic Filing of Campaign Statements and Statements of Economic Interests.
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Questions?
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