CC - Item 4C – Introduction and First Reading of Ordinance No. 1023 Adding Chapter 1.14 to the Municipal Code to Allow for Electronic and Paperless Filing of Fair Political Practices Commission (FPPC) Campaign Disclosure StatementsROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: BEN KIM, CITY MANAGER -5�t�
DATE: OCTOBER 8, 2024
SUBJECT: INTRODUCTION AND FIRST READING OF ORDINANCE NO. 1023
ADDING CHAPTER 1.14 TO THE MUNICIPAL CODE TO ALLOW FOR
ELECTRONIC AND PAPERLESS FILING OF FAIR POLITICAL
PRACTICES COMMISSION (FPPC) CAMPAIGN DISCLOSURE
STATEMENTS
SUMMARY
The City Clerk is the local filing officer for the City of Rosemead, and is responsible for
receiving, reviewing, and storing campaign disclosure information, as well as making it
accessible to the public. To provide a more efficient process, the City Clerk's Office will be
implementing NetFile, an electronic/paperless filing system that accommodates online filing of
several types of FPPC forms, including Forms 460, 470, 496, and 497, and meets the
requirements of the Secretary of State. In order for the City of Rosemead to accept
electronically filed statements, the City Council must adopt an ordinance (Attachment A)
approving the use of an online or electronic filing system, which shall include the legislative
finding that the online or electronic system will operate securely and effectively and will not
unduly burden filers. While adoption of an ordinance is not required for the use of an electronic
filing system for Form 700s, the implementation and utilization of NetFile for
electronic/paperless filing for all Form 700 (Statement of Economic Interest) will significantly
improve ease of access to Form 700s to the public as well as decrease the time that City Clerk
staff spends managing the annual gathering, tracking, and filing of Form 700s.
DISCUSSION
The Political Reform Act recognizes campaigns that spend or raise more than $2,000 as
"Controlled Committees." Under the Act, these committees are obligated to file detailed
campaign finance statements, also known as Fair Political Practices Commission (FPPC) Form
460s. The City Clerk serves as the local filing officer for the City of Rosemead, and is
responsible for receiving, reviewing, and storing campaign disclosure information, as well as
making it accessible to the public. The City Clerk's office currently accepts paper filings of such
documents and staff have been manually redacting and uploading forms to the City website.
AGENDA ITEM 4.0
City Council Meeting
October 8, 2024
Page 2 of 3
Assembly Bill (AB) 2151 mandates that cities post all campaign statements, reports, and other
documents required by the Political Reform Act to their websites within 72 hours of filing. To
streamline this process, the City Clerk's Office plans to implement NetFile, an electronic filing
system that supports online submission of various FPPC forms, including Forms 460, 470, 496,
and 497, and complies with Secretary of State requirements. NetFile will help the city adhere to
AB 2151, enhance public transparency, and simplify the filing process for users. Currently, 191
cities and 32 counties in California use NetFile for electronic campaign disclosure filings.
Government Code Section 84615 allows local government agencies to require an elected and
appointed official, candidate, or committee to file FPPC campaign statements, reports, or other
documents online or electronically with a local filing officer.
In order for the City of Rosemead to accept electronically filed statements, the City Council must
adopt an ordinance approving the use of an online or electronic filing system, which shall include
the legislative finding that the online or electronic system will operate securely and effectively
and will not unduly burden filers.
In terms of security, the NetFile system is a web -based, vendor -hosted application that utilizes
"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 allows for recovery of information in
the event of an emergency or disaster.
Implementation of the NetFile system will promote transparency and provide convenience for
committees, individuals, and the public. It provides 24-hour filing and viewing accessibility of
campaign finance information from any computer, anywhere. In certain instances, the NetFile
system will also increase the accuracy of filed campaign statements by prohibiting any filings
that may have inadvertently omitted information required under the Political Reform Act. To
ensure a smooth implementation and transition, NetFile and the City Clerk's Office will offer
training to all filers.
Statement of Economic Interests (Form 700)
The City Clerk manages the annual filing of Form 700s for key city officials, commissioners and
designated staff. Amendments or incomplete submissions occasionally occur. To improve this
process, it is recommended that all Form 700 filings, beginning January 1, 2025, be done
electronically. The electronic filing system will provide immediate error alerts to filers, reducing
the need for the City Clerk to request corrections. Currently, 237 cities and 51 counties in
California use electronic systems for Form 700. Implementing the electronic filing component of
NetFile for Form 700 is an internal procedural update and does not require an ordinance.
Campaign Statements
Adding Chapter 1.14 of the Rosemead Municipal Code will permit the electronic and paperless
filing of Fair Political Practices Commission (FPPC) campaign disclosure statements through an
online system.
City Council Meeting
October 8, 2024
Page 3 of 3
STAFF RECOMMENDATION
That the City Council approve the first reading, by title only, of Ordinance No. 1023, authorizing
the addition of Chapter 1.14 of the Rosemead Municipal Code, to allow for electronic and
paperless filing of Fair Political Practices Commission Campaign Disclosure Statements.
FISCAL IMPACT
There is no fiscal impact with the approval and adoption of this ordinance. The Netfile system
cost in the amount of $4,930 per year was included in the City Clerk budget for Fiscal Year
2024-2025.
The Ordinance is not subject to review under the California Environmental Quality Act
("CEQA") pursuant to CEQA Guideline Section 15061(b)(3) because it can be seen with
certainty that there is no possibility that the Ordinance may have a significant effect on the
environment. This Ordinance would not result in any development or changes to the physical
environment.
STRATEGIC PLAN IMPACT
None.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Prepared and submitted by:
Ericka Tlemandez, City Clerk
Attachment A: Ordinance No. 1023
Attachment A
Ordinance No. 1023
ORDINANCE NO. 1023
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF ROSEMEAD AMENDING MUNICIPAL CODE ADDING
CHAPTER 1.14 TO TITLE 1 REGARDING ELECTRONIC
AND PAPERLESS FILING OF FAIR POLITICAL
PRACTICES COMMISSION CAMPAIGN DISCLOSURE
STATEMENTS
WHEREAS, California Government Code Section 84615 provides that a legislative body
of a 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 online or
electronically with the City Clerk; and
WHEREAS, the City has entered into an agreement with Netfile, a vendor approved by the
California Secretary of State, to provide an online electronic filing system ("System") for
Campaign disclosure statements; and
WHEREAS, the System will operate securely and effectively and will not unduly burden
filers. Specifically, (1) the System will ensure integrity of the data and includes safeguards against
efforts to tamper with, manipulate, alter, or subvert the date; (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 online or electronic filings; and (3) the System will
be available free of charge to the filers and to the public viewing filings; and
WHEREAS, the City of Rosemead desires to amend the Rosemead Municipal Code to add
a new chapter related to electronic filing of campaign statements.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ROSEMEAD, DOES
HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Amendment. Chapter 1.14, "Electronic filing of campaign disclosure
statements," is hereby added to Title 1 [General provisions] of the Rosemead Municipal Code as
follows:
Chapter 1.14
ELECTRONIC FILING OF CAMPAIGN DISCLOSURE STATEMENTS
1.14.010. General
A. 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.) may file such statements using
the City Clerk's online system according to procedures established by the City Clerk. These
procedures shall ensure that the online system complies with the requirements set forth in
Section 84615 of the Government Code. From and after January 1, 2021, elected officers,
candidates and committees required to file statements must file such statements using the
City Clerk's online system, unless exempt from the requirement to file online pursuant to
Government Code Section 84615.
B. The online filing system shall only accept a filing 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 and that is compatible with the Secretary of State's system
for receiving an online or electronic filing.
C. The online filing system shall include a procedure for filers to comply with the requirement
that they sign statements and reports under penalty of perjury pursuant to Section 81004 of
the Government Code.
1.14.020 Procedures for utilizing online filing.
A. During the period commencing with the effective date of the ordinance codified in this
chapter and ending January 1, 2025, an elected officer, candidate, appointee, committee or
consultant may choose to utilize the electronic filing system by electronically filing a
statement that is required to be filed with the City Clerk pursuant to Chapter 4 of the
Political Reform Act. Once the elected officer, candidate, appointee, committee or
consultant has filed electronically, all subsequent statements shall be filed electronically.
From and after January 1, 2025, electronic filing is mandatory unless the officer, candidate,
or committee is exempt as described in Section 1.14.010.
B. Any elected officer, candidate, appointee, committee or consultant 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.
C. The City Clerk shall issue an electronic confirmation that notifies the filer 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 print the data
received by the City Clerk. The date of filing for a statement filed online shall be the day
that it is received by the City Clerk.
D. 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.
1.14.030 Availability of statements for public review—Record retention.
A. The City Clerk's system shall make all data filed available on the city's web page in an
easily understood format that provides the greatest public access. The data shall be made
available free of charge as soon as possible after receipt. The data made available on the
city's web page shall not contain the street name and building number 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 make a complete,
unredacted copy of the statement, including any street names, building numbers, and bank
account numbers disclosed by the filer, available to any person upon request.
B. The City Clerk's Office shall maintain, according to the city's retention schedule, 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 2. California Environmental Quality Act. The City Council finds that the
Ordinance is not subject to review under the California Environmental Quality Act ("CEQA")
pursuant to CEQA Guideline Section 15061(b)(3) because it can be seen with certainty that there
is no possibility that the Ordinance may have a significant effect on the environment. This
Ordinance would not result in any development or changes to the physical environment.
SECTION 3. Severability. If any provision of this Ordinance or the application thereof
to any person or circumstance is held invalid, the remainder of the Ordinance, including the
application of such phrase or provision to other persons or circumstances shall not be affected
thereby and shall continue in full force and effect. To this end, provisions of this Ordinance are
severable. The City Council hereby declares that it would have passed each section, subsection,
subdivision, paragraph, sentence, clause, or phrase hereof irrespective of the fact that any one or
more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be held
unconstitutional, invalid, or unenforceable.
SECTION 4. Publication and effective date. The City Clerk shall publish this ordinance
as required by law. This Ordinance shall take effect and be enforced thirty (30) days after its
adoption.
PASSED, APPROVED AND ORDAINED this day of , 2024.
APPROVED AS TO FORM:
Rachel Richman, City Attorney
Steven Ly, Mayor
ATTEST:
Ericka Hernandez, City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss
CITY OF ROSEMEAD )
I, Ericka Hernandez, City Clerk of the City of Rosemead, County of Los Angeles, State of
California, hereby attest to the above signature and certify that Ordinance No. 1023 was introduced
for first reading at the regular meeting of October , 2024. Said Ordinance was approved and
adopted by the City Council of the City of Rosemead at a regular meeting held on the day of
2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Ericka Hernandez, City Clerk