Summary and Action Requested
This memo provides an overview of proposed amendments to the Ethics Commission’s regulations regarding the City’s campaign consultant rules.
Staff recommends the Commission review, discuss, and approve the proposed regulation amendments as drafted.
Proposed Amendments to Campaign Consultant Regulations
San Francisco Campaign and Governmental Conduct Code (C&GCC) Section 1.500 et seq. requires a person or entity that receives or is promised $1,000 or more in a calendar year for providing either campaign management services or campaign strategy services to register, pay fees, and file reports with the Commission. The reports, including registration reports, quarterly disclosure reports, and client authorization and termination statements, are required to be filed in hard copy and remain the last fully paper-based disclosure program operated by the Commission. Section 1.540 permits the Ethics Commission to require campaign consultants to file an electronic copy of a statement or report if the Commission adopts regulations specifying the electronic filing requirements 120 days before the electronic filing requirements are effective.
During the Commission’s office closures due to the COVID-19 pandemic, the Commission instituted temporary processes for accepting campaign consultant disclosure statements electronically, which did not require consultants to file paper copies at the Commission’s office. Campaign consultants could scan or photograph the paper reports or statements and upload the documents via the Commission’s website. Since the Commission’s physical office reopened last year, the Commission has continued to use these temporary processes, instead of returning to the pre-pandemic processes that required filing on paper. For the current calendar year, there are 47 campaign consultants registered with the Ethics Commission and only six have chosen not to use the electronic submission process. The pre-pandemic processes are outdated and unnecessary given the availability of secure methods for electronic filing that the Commission has successfully employed in all other program areas.
Over the past few months, Commission staff have developed a new, more streamlined electronic filing process for campaign consultants that consolidates many of the existing paper forms and simplifies the reporting process. This new electronic process will streamline the filing process for campaign consultants and Ethics Commission staff. Instead of consultants needing to potentially file six different forms, the new process will only involve two electronic forms that capture the same required information. The new electronic forms are undergoing testing and will be ready for consultants to use when registering in January for the 2025 calendar year. Were the Commission to require electronic filing, paper copies of statements would no longer be required.
The proposed regulations would make two changes to the regulations regarding campaign consultants:
- Campaign consultants would be required to file statements and reports electronically in a format prescribed by the Ethics Commission; and
- Existing regulations permitting consultants to file Client Authorization Statements via facsimile would be removed, as the ability to fax in documents will no longer be necessary with electronic filing in place.
These draft amendments are presented in Attachment 1. These recommended amendments were developed by the Policy Division based on feedback from, and in collaboration with, the Commission’s Engagement & Compliance and Electronic Disclosure and Data Analysis (EDDA) divisions.
The draft regulations from Attachment 1 have been noticed to the public more than 10 days prior to the Commission’s August meeting, as required by Charter Section 4.104. Thus, the Commission may vote to adopt the proposed regulations during its August meeting if desired.
Recommended Next Steps
Staff recommends the Commission vote to approve the proposed regulations as drafted.
Attachments:
Attachment 1: Ethics Commission Regulation Amendments – Noticed Publicly on 7/29/24