21st, 2025 City Council Ethics and Governance Committee.

My name is Joaquin Martinez, and I'm the chair of the committee.

It's now 1005, and I'm pleased to call this meeting to order.

I'd like to start by recognizing my colleagues joining us today, beginning with Vice Chair, uh Carter, Councilmember Mario Castillo, Councilmember Sally Alcorn, Councilmember Julian Ramírez.

We have staff from Councilmember Letitia Plummer's office, Councilmember Amy Peck's office, Council Mayor Prote, Vice Mayor Pro Tem.

Amy Pegg's office, Mayor Pearl Tem, Martha Cassis State of the Office, Councilmember Tiffany Thomas's office, and Councilmember Abby Kamen.

I want to remember a small uh opportunity for our vice chair if she had any words, comments before we get started.

Councilmember Carter.

Thank you, Chair.

Sorry, I was reading.

Uh no, I'm really looking forward to the presentation today and uh glad to to get this meeting on the books, and thank you for all you do.

Thank you.

Uh I want to remind council members uh to please hold your questions until after uh the end of each presentation.

When you're recognized, please be sure to speak clearly into the microphone.

And I will let you uh know when your three minutes for questions has ended.

I want to switch over to today's uh meeting agenda today.

The the committee will be will receive an overview of new changes to the council rules of procedures, uh, an overview of chapter 18 and the city's obligation as a filing authority in various election matter election related matters from senior assistant city secret city attorney Daniel Folsom.

Um so I want to turn it over to Ms.

Folsom to come and talk about some of the new rules.

Um if you can please introduce yourself for the record as well as any other uh members of your team that is joining us today, good morning, council members.

I'm here today joined by uh general counsel section chief Rashad Gambrell as well.

Thank you for having us today.

Um as uh was discussed, we're going to be doing a presentation where I'll be discussing the new changes to section 2-2 of the city's code of ordinances, which contains the council rules of procedure.

And then in anticipation, I understand of further discussion about these topics.

I'm going to do brief summaries about the city's role as a filing authority in regards to campaign finance reports, personal financial statements, uh, as well as candidate applications.

Next slide.

So as everyone is aware, uh earlier, uh a few months ago, uh ordinance number 2025-604 was passed, adding some new language to the council rules of procedure.

Uh specifically, it's amending first rule one uh specifying that uh a final Tuesday session of each month shall take place at 5 30 p.m.

Uh so the public there will be an evening public session uh the final Tuesday of the month.

Next slide.

The ordinance also amends to reflect the change in rule one, rule eight, which again provides that the last Tuesday session of comment by members of the public uh shall be scheduled for 6 p.m.

Next slide.

So this ordinance is in place, but it does expire on December 31st, 2025, unless reenacted, extended, or otherwise modified by ordinance adopted by city council prior to that date.

So with that in mind, we have the following evening session dates that have been uh confirmed between now and the end of the year.

And all those meetings will will start at 5 30 p.m.

Um and then finally um you uh as you may remember with the council meeting schedule ordinance that was passed at the beginning of this year and amended, we do have consolidated sessions and break weeks at the end of September, November, and December as well.

Um and those will continue as provided in ordinance.

Next slide.

So that was just sort of a brief overview of you know what the dates are going to be, what that changes.

The rest of my presentation again is a brief summary of the city's role as a filing authority.

Next slide.

Starting with campaign finance reports.

So as you know, campaign finance reporting is governed by state law under Title 15 of the Texas Election Code.

And through that statute, the Texas Ethics Commission is the enforcement body for violations.

The City of Houston's role, specifically the City of Houston City Secretary's Office is the term that they use in the guidance from the Ethics Commission, and in the statute is the local filing authority.

So many state officials file with the ethics, the state ethics commission as their filing authority, but local officials file with the filing authority related to their specific jurisdiction.

And for City of Houston elected officials, that is what the city secretary's office.

And we have a electronic filing system, which was approved by the ethics commission to use sometime around 2007 and has been used since that time.

So in our role as the local filing authority, the ethics commission provides various guidance to us, including a guide which advises the following regarding enforcement in our role.

As a local filing authority, the city has no authority to penalize filers.

However, individuals may file criminal complaints with an appropriate county or district attorney or a sworn complaint with the ethics commission alleging a violation of Title 15.

So as a local filing authority, we exist as a repository for the reports that are required to be filed and that are then posted online for members of the public to view.

Something that's much more similar to what the state uses, and will likely better assist in identifying and tracking the status of various filers because with the current system any kind of tracking like that is is essentially sort of manual work.

Next slide.

So then we have personal financial statements.

Pursuant to chapter 145 of the local government code, officeholders, members of city council, the mayor, and the city attorney must file a state form again with the city secretary's office.

And then separately, the city has its own ordinance, section 18-21 of the city code that creates a report very similar to the state form, uh but uh tweaked in some ways that requires certain covered officials to file as well.

And so that's all elected officials of the city as well as executive certain executive level employees at the city.

So the city secretary's office receives those forms and they are filed physical copies.

There's not an electronic filing system for this document currently, but they work with the legal department who also works with HR to identify the individuals required to file and to notify them and follow up with them if statements aren't received.

And again, the city is in the process of converting to a filing system that could include personal financial statements as well.

That would help facilitate an easier filing process for uh individuals required to file, and again would make it much easier to identify late or missing filers, um, especially with the the amount of resources that exist in the city secretary's office at this time.

Next slide.

And then finally, we have uh candidate applications.

We are in the midst of a filing period right now for the vacancy election for at large position four.

So this review process is going on actually right now.

Um pursuant to uh section 141.032 of the election code, uh the authority with whom the application is filed for a place on the ballot must review the application to determine whether it requires with complies with the requirements as to form, content, and procedure only.

And so our city charter uh provides that the mayor's office is the filing authority and the authority with whom a application for a place on the ballot is filed, and so that's why applications come in and must be filed with the mayor's office.

Once that application is filed, uh the mayor's office, the legal department, the city secretary's office, and we also loop in the planning and development department, all work to review what is on the four corners of the document and to determine if that candidate based on what we can legally review and take into consideration has met the requirements.

So for example, we confirm with planning and development that the address falls into the full purpose uh limits of the city of Houston.

The city secretary's office checks voter registration because a candidate must be registered to vote in the jurisdiction for which they're running.

So all of that happens before a application is approved and that individual's name is updated on the city's website.

And if an individual does not meet one of the requirements, which we can um look at, then they will receive a rejection letter.

Now this uh provision of the election code section 145.003 does provide for what we call an administrative declaration of ineligibility by the mayor's office, uh, which as I said, we do send out rejection letters and those determinations are made to the extent that we're able to, because the this the provision of that statute is very specific.

It requires that a filing authority cannot declare a candidate ineligible unless the information on the candidate's application for a place on the ballot indicates that the candidate is ineligible for the office, or facts indicating that the candidate isn't eligible or conclusively established by another public record.

So for example, because we are often uh relying on guidance from the elections division of the Secretary of State when we're reviewing applications and conducting our election process, they've advised based on relevant case law that no public record can conclusively establish residency.

Only a court of law can do that.

And so, you know, that proceeding typically happens through a quo warento proceeding.

So that's just a brief overview of the city's position as a filing authority and those three areas.

Um and that includes my concludes my formal presentation.

Thank you, Ms.

Folsom.

So we ran through two uh two items.

The first one was overview of new changes to the council rules for procedure.

Uh the second one was one we just heard was Chapter 18, uh the city's obligations for filing um as an elected uh uh um uh for candidacy.

Um I want to speak to the first part uh initi um the first part um and just kind of bring up that the city is considering to update it uh the agenda system.

I'm not sure how many of y'all have had conversations uh with the agenda office.

Uh this feature for residents, it's it allows them to sign up for public comment.

The new system would allow uh residents to sign up using a online portal in addition to calling the city secretary's office.

Uh wanted to kind of get some feedback from my colleagues so that way we can have this public uh discourse here.

Um the it is still under Granicus.

It's the the pro the application is called one meeting.

It's the new agenda system, and and um just want want you to also kind of have some background that this is also um in other cities as well, the county, uh city Harris County, but also City of LA, Long Beach City, and Fairfax, Virginia.

Um and so um wanted to kind of get your feedback.

We are looking at uh an October implementation.

Uh there will be some training over the two weeks prior and some overlapping so that way there's you know spell safe uh if for whatever reason the application does does have any kinks that uh folks can still continue to sign up the way they have normally the other thing that um and I know we we had this discussion around the horseshoe when it came to the changes to uh evening meetings.

Uh I also was uh had thoughts, and I know we we've well we've had some colleagues mention how long the meetings can be.

Uh I know there are some conversations about no proclamations possibly.

I don't know what the conver you know if there's been any more discussions with my colleagues, if there's any interest, uh, but that is something that I have uh spoken to the administration about uh presenting um as an amendment to to the uh to the ordinance that we did change is uh possibly no proclamations, making sure that, and I think we're doing a better job as well as adhering to the time limits.

Uh but the other the other uh item is uh adhering to the speaker's list order.

I think uh plenty of time we're more than more than uh often we're asking for uh um opportunities to bump folks up on the agenda or adding folks.

Um just wanted to kind of see what the feedback was for folks around the horseshoe now.

So we have uh counselor council uh Ramidas.

Thank you, Chair.

Um on the first topic of uh the filing platform.

Um I certainly think what we have now needs to be improved.

The state filing system is a much better uh platform to file on and uh easier to work with as far as what Granicus may offer.

I would love to see screenshots or some sort of demonstration about how that would work.

Um, beyond that, I'm not really able to speak offer uh a thought other than uh probably almost anything would be better than what we have.

Yeah.

Uh on the second uh topic on limiting presentations at the evening meeting.

Um I I don't feel strongly that we should eliminate presentations at the evening meeting.

However, I think there's there are things that we can do as council members uh to reduce the amount of time it takes for a presentation.

Sometimes the entire proclamation is read.

There are multiple speeches, photographing takes a long time.

So I think there are things we can do on our own to make that a shorter process so that we start on time and and end on time.

So to the first one, just briefly, uh we are looking at possibly a special call meeting in September where they would have a presentation uh speaking on Granicus and what that new system would look like.

So um we'll keep you up posted on on that.

Um we have Councilmember Alcorn.

Thank you, Chair, and and I agree the the current system on filing our our campaign finance reports needs needs updated by for the record, anybody looking.

The last uh the last one uh shows I filed it on time.

I've filed never not filed on time.

But the two previous ones never got up on the on the website.

They had the date stamp and everything correct.

Um, but now it looks like the date on up there looks like I filed them late, which makes me mad because I didn't file them late.

So whatever we can do, whatever in corrections to the platform, I'm all in, because that that happened to me, and I didn't even realize it.

Somebody had to point it out to me, and then I went through all the machinations with the city secretary's office to make sure they had everything.

On the uh proclamations, I do feel strongly that we should not have them on the evening meeting.

That is a uh a um yeah, that's just everybody's evening and everybody wants to get home.

So I think that's something we should reserve for the for the ones in chamber on and at the two o'clock meeting.

And I think that's all you were asking about.

Thank you.

Uh Councilmember Carter.

Thank you, Chair.

Um I I am with uh Councilmember Alcorn on the proclamations.

Um, I think that if we're pushing um, you know, constituents to sign up and encouraging them to sign up to be here to speak on a Tuesday evening, you know, potentially we could get a a whole lot of speakers, right?

And I don't think anyone wants to be here till midnight, you know, when we're back here the next morning at most of us 7.30 or 8 on a Wednesday getting ready.

But um, you know, I think the proclamations, uh I think we need to be mindful.

I think we need to police ourselves.

But uh, you know, I I just don't I I think we need to um I strongly encourage eliminating that Tuesday evening proclamation period because that sometimes goes on for an hour.

So that and then as far as um the uh filing system, anything we can do is an improvement.

Electronics especially I look at you know an antiquated uh personal financial statement, you know, that there's no it's just a it's floating around somewhere, you know.

It's it's really so I um look forward to seeing what you all have come up with.

And also too on the uh uh campaign uh finance reports, you know, I feel strongly that these should be monitored, and if they're not filed, there should be some sort of a uh a sanction or repercussion because I think you have people who never file, and then you've got those who are worried because you know they're down to the wire.

So, you know, I think that we can put all the systems in place, and that's great, but also too, we need to again police, you know, police ourselves, but but also enforce what's out there because it at this point it's it's just kind of a checking the box and if you if you choose to, so thank you.

So what I would say uh first, let me just uh for clarification the the filing system is done through the Texas Ethics Commission.

It's not done through Granicus.

Uh I think there's uh some conversation about that.

Uh uh and we do have some uh something that's brought to the table by one of our colleagues that once we get to that point.

Um next we have uh Councilmember Castillo.

Thank you, Chair.

So just to clarify, the system we use for our agenda is getting upgraded.

Correct.

The system we use to file our campaign finance reports is not, and that's done that's a system that's done through the state.

It will be upgraded as well.

It will be upgraded as well.

But it's two different systems, though.

That's correct.

Um I'm not uh very familiar with the Granicus upgrade, but I do understand that is sort of a separate process having to do with individuals signing up to speak for public session.

Separately, uh the mayor's office has been and talks working with HIIT and they're progressing to work uh with an entity who has worked with the State and who has worked with other entities in the State of Texas to create campaign finance systems, personal financial statement filing systems, and lobbying filing systems.

So that is sort of a moving separately.

What's the timeline on on that?

I think my understanding from the last conversation with the mayor's office is their hope that it would be able to um start with the next simil semi-annual report filing in January of 2026.

Um but that's where we are right now, and of course that could change, but that is what they're anticipating.

Okay.

That's sooner than I anticipated.

Yeah.

So our next following report would we be working off of the new system, possibly.

Great.

Um evening session proclamations, I I don't feel too strongly either way.

I see the case for both.

Um the way that the ordinance is written and it's set to start at 6 p.m.

for the speakers, 5.30 for the procs.

Um I could see a case if people are concerned where we just limit it to one, and within that 5.30 to 6 p.m., there's just one and there's no second or third.

Um and I also I see the the case for just saying stick to the two p.m.

meetings either way.

I don't feel too strongly about it.

I know I've chatted with the administration and they're open to to none.

So to that uh to the proclamation, and I appreciate the feedback here.

Um I I just I just want to uh share that as as we switch over to the evening meetings to be cognizant of everyone's time and and as Councilmember Carter mentioned uh vice chair.

Um we are getting here early the next day, and so some of the proclamations we start at 1.30, we start uh public session usually around 2.30, so about a good hour.

Uh it's supposed to be a shorter amount of time, but pictures and so on, and it does prolong it.

So it's something that like I said, I had mentioned with the uh with administration as well.

And if you all are interested, I'd love to push through or we could eliminate proclamations in the evening.

Um I'll leave that up for uh Prop A possibly in the future.

Um definitely want to uh dig dig into the uh Chapter 18 on um filing.

Um and I want to uh pass it over to uh Councilman Ramides.

Thank thank you, Chair, and I appreciate your willingness to um have this discussion about these proposals.

Um so every but one should have received uh memo summarizing the proposed changes.

Uh one has to do with campaign finance report reporting.

And there are really two components to it, and the second one has to do with the personal financial uh statement disclosure.

So uh to talk about the campaign finance uh reporting first.

Um Councilmember Carter, I totally agree with you that there there should be penalties for folks who don't file campaign finance reports or file them late.

Unfortunately, the only entity that can assess fines is the Texas Ethics Commission.

The city cannot penalize late filers or non-filers.

And so the issue becomes uh if the s if the ethics commission does not know about a failure to file or a late filing, they can't do anything about it.

And frankly, even when they do something about it, uh they don't always enforce those fines that are assessed.

But we can only uh take care of our own business here, so to speak.

And so as as someone who has been a candidate, I've been frustrated when uh other um competing candidates have failed to file or have filed late, because currently the city does nothing to let the public know who has failed to file or who has filed late.

It's only through the reporting of the Houston Chronicle that those facts are made known to the public.

And the public should know who is complying with the rules and who is not.

That's an important fact they could take into consideration when they decide who to vote for.

In addition, the information that is on a filed report, there's nothing to back it up.

There's no way of telling whether it's true or not.

A candidate could list donations that are made up in order to make their candidacy look stronger.

No one ever goes back behind those filings to determine have they actually received that much support or not.

We don't know because there's nothing to back it up.

So one proposed change would require a candidate when they file to also file supporting some of the supporting documentation, copies of a bank statement, copies of a credit card statement, copies of checks.

This would provide some evidence that what they're filing is actually true or not true.

I know some may have a concern about privacy and certain sensitive information being revealed.

However, you know, in the way our government operates when documents are shared or produced in regards to a public information request, we commonly redact information.

And so we could, in connection with this requirement, also uh allow filers to blot out or protect uh account numbers, uh any sensitive information like that.

And to make clear this proposed requirement would only go to campaign documents, campaign records, and not donor uh records.

Um that's one, that when a candidate files reports, they also file the supporting documentation.

The other proposed uh change I would like to make is to when a candidate doesn't file or late file that the city secretary takes some action.

Um, the city secretary would under this proposal post information uh regarding candidates who have not filed uh within 24 hours of the deadline, those would be posted on the City Secretary's website.

In addition, um, the City Secretary would report candidates who haven't filed to the Texas Ethics Commission so that the Ethics Commission could begin an investigation to see if there's been a violation, because as I said earlier, no one's doing anything uh in regards to the failure to file or late filings, other than one uh media outlet, the Chronicle.

Um and I know that candidates are reluctant to turn in other candidates, you know, for fear that they will draw scrutiny and have some uh complaint made against them baseless or not.

So candidates don't like to uh do that sort of thing.

Uh members of the public may not be informed about what the requirements are, and they're busy with uh their own lives, and so um it's it's hard for members of the public to get involved as well.

So that's the proposal with regard to campaign finance reporting.

Happy to have a discussion about this at this time.

Yeah, if uh if I may, um you have these items in front of you, Ms.

Walsell.

I do.

Okay.

Can you speak to uh so there's two uh one of them is under Section 8 uh 18-103, the other one is uh Section 18-104.

If you can speak to uh the first one?

Sure.

Um so you know, the the legal department doesn't have sort of a any position on these proposals, but uh just sort of identifying some items for consideration.

I think in terms of the additional reporting requirement of the bank statements and credit card statements, um just to sort of understand logistically how that would likely um have to work.

I think it would have to be a separate form from the uh state form that we file, which can be done.

Austin has separate campaign filing requirements, so elected officials have to file the state form and the Austin form, but we can make very fewer or no changes to what the state form is like it.

The state form has to be preserved as the state has crafted it.

So an additional filing.

So for um, you know, if this new campaign filing system gets off the ground, then adding sort of this additional form to allow them to file that electronically.

Um I think that that um can likely be accommodated.

Austin has worked with the same company that we've been talking to, but you know, there will be sort of a likely additional cost and you know, additional coding.

Um additionally, you know, as we've talked with uh as has been discussed regarding uh privacy issues and confidential confidentiality issues with bank statements, you know, we'll um you know, um logistically will need to look into security protocols.

So if they're filing electronically, we need to make sure that this information that is confidential is protected and has adequate security protocols with that uh filing system, um, maybe even more so than are already in existence for the type of information that would normally be filed, which is normally sort of public in nature.

Um there was a discussion about the TPI request.

There may be individual information within that statement uh like the identity of the bank they use, the account numbers, but also in general when we've had TPI requests for bank statements of that the city may have in its custody with individuals dealing with the city for whatever reason, oftentimes that entire statement must be withheld from disclosure.

So if this were to pass, you know, the I'm sure there would be a lot of public interest and potentially a fair number of requests for this type of information.

We're going to have to sort of proceed with the AG's office and do some initial requests for rulings to determine what is the extent of which is required to be withheld.

And then, you know, based on that we can operate from there.

But and while there's some information that we can withhold, like bank account numbers, um, social security numbers without writing to the attorney general's office, everything else, and usually like something like a bank statement, we would have to write to the Attorney General's office every time to withhold it, unless the requester agrees otherwise, which again are all things that we can do, update our policy and practices and make the department who um is the custodian of this information aware, but that'll just you know be additional resource uh resources that will have to be allocated uh in order to do that.

So if I hear you correctly, is a cost is what's gonna really be the m the highest impact.

I I would uh I would say so.

Now, you know, once uh electronic filing system, you know, is set up, there may be a lot of initial sunk costs, but once we get things moving, and also once individuals see that perhaps when you with uh request this information, you're not gonna be able to get it.

You know, that costs may go down over time, but we're you know, we're going to become the repository for a a lot of new information.

We'll have to see what the retention schedule for this information will be.

There is confidential information in this uh in this documents or the documents as a whole are confidential, so so they'll have to be safeguarded.

Yeah.

Okay.

Thank you.

Uh we have Councilmember Alcorn.

Thank you.

And thank you, Councilmember Ramirez, for putting some thought into this.

I I too have been frustrated by um those who who are not filing um reports.

I I was uh it sounds like a good transparency idea.

I am a little bit concerned about the the what you're talking about, like a lot of back and forth with the AG and the practicality of that.

Uh I do um there's probably a way to work through that.

I wanted to ask about other cities and entities and federal is this a requirement in other backup materials and other elections, you know, and other bodies of government as something to go by.

Like you said, Austin had its separate form.

Do they require bank statements and credit card statements and not to my knowledge?

I have not um I you know was not involved in the creation of this proposal, so I haven't extensively viewed, but I'm not familiar with this type of information.

Perhaps if I could address Councilmember Ramirez, if you guys did any um looking into that.

Um I don't I don't think we checked to see whether uh other cities did this, but you know it's always good to be a trendsetter.

Sure, I agree.

And this would be um, you know, depending on like you're saying the new finance reporting thing could be done by January.

So if this were to pass, this could would be for the for the January to would start with the January filing report.

Well, if it did pass, there would have to be conversations with the company about you know it might be late or at this point I cannot sort of guarantee any type of line with that.

If if the changes are made, that would you be your intention to start with the next filing report.

Even if uh as as soon as we could, but even if we had to delay that, you know, for a reporting period, that would be fine.

Sure.

Okay.

Okay, thank you.

Councilmember Carter.

Thank you, Chair.

Um and and thank you, Councilmember Ramirez for I uh agree, putting some thought into it.

I think this is a pretty heavy ask, to be honest, because just in transparency, uh in in theory it sounds like a good idea, but I think the security element, unless there is something out there that can really be buttoned up and and secure, because nowadays when you look at, you know, I mean, everything has fraud attached to it.

I think uh before we change what is out there, we need to enforce what is out there.

You know, and and it goes back to if you're not filing, there's you know, there should be some action.

So I can't imagine really we're talking about in or I think of those who aren't filing.

If they are currently not filing, nothing happens.

What's you know, now all of a sudden you say, well, nothing happens if you don't file, and now we're gonna ask you to file all this documentation, and they're still not going to, those who do that aren't going to comply anyway.

So I I think the backup is uh again a heavy lift.

Um and we're not we're looking at those primarily who who don't file.

Yeah.

And and and quite frankly, I I do share your concerns.

Um many of us took a tour with uh the IT director, and more information that we're uploading, you know, it's just more information that could be uh definitely uh um taken taken from uh from the city as well.

So um Councilman uh Ramirez?

Yes, you know, as to the uh privacy concern, um as I said, you know, information can be blotted out uh to protect uh what needs to be protected.

However, um it is pretty clear that candidates have to maintain a separate campaign account.

You cannot run a campaign through your personal account without getting into some really serious trouble.

Um so it I believe there is less privacy in a campaign finance account than there would be in our own personal bank accounts and credit card accounts.

So, you know, this proposal wouldn't get into any of that.

It would deal with an entity that is not personal, but um so there would be less of a privacy interest because of that.

And given the great public interest in our elections and who is contributing to uh these campaigns, um this is not not unreasonable at all.

Let me also say that regard to the additional work needed to uh file these documents, everything is digital now.

I mean, I get digital access to my campaign account, I get digital copies of uh the checks that come through, you know, same with I don't have a credit card, but I have a debit card linked to the account.

All of this is available in digital form and can be easily uploaded.

I don't know that it would require an additional form.

Um I would think that whatever whatever platform we adopt could allow for attachments to be uploaded as well.

All my stuff is uploaded digitally uh anyway.

I I don't file any written reports currently.

Um so all of this could be achieved uh fairly easily in in my estimation.

Thank you, uh Councilmember Ramirez.

Uh Councilmember Alcorn.

You mentioned that uh it was mentioned that the information from donors would not be out there.

I think that that is just meaning like would we put checks and just redact like show the check from the donor and just redact the account number?

Is that what you have in mind, Councilmember Ramirez?

That would be a good thing.

Okay.

So you just you would just but but that okay.

I think that's what I had in mind.

Thank you.

And the ca any kind of additional cost, if you're talking about what Councilmember Ramirez was talking about, just an upload of of documents would just be but I guess the cost that you were talking about was back and forth with AG and security as well.

And security.

I want to try to understand what the cost that we're talking about.

Well, and you know, it it's the the company not having sort of this information uh uh about this, you know, they have a sort of an out-of-the-box system that um very closely mirrors the state system.

And so, you know, it can certainly be modified, it can certainly be coded, there can certainly be additions, but whatever that is will have an uh additional cost associated with it because it's not what sort of the out-of-the-box function is.

So they would have to review and then you know provide a proposable about like what would be involved with that or suggestions.

So it's you know, I think all of these can things can be done, processes can be in place.

There's just sort of additional resources will have to be allocated to do so.

Uh uh, but um I will say, Councilmember Ramirez, that on the listing of the nonfilers, I think that's a no-brainer.

I mean, that's an easy thing to do for the City Secretary.

Um you know the date it's due, you know who hasn't filed.

I think once giving them the benefit of like, yeah, what happened to me that thing didn't, you know, don't don't just like throw them out there right away, make sure that there's actually uh legitimacy to the nonfiling.

But I think that is something you know we could, you know, that could be implemented at this next filing date.

I agree.

Uh Councilmember Gastilla?

Thank you, Chair.

And I agree, Councilmember Alcorn with that and with uh just strengthening our enforcement for folks that are actively choosing not to file, uh knowing that there is a deadline, knowing it's consistently there every you know uh six months unless we're uh in a campaign.

Um I also support the idea for more transparency around uh the reports that we are filing, you know.

Um Councilmember Ramirez, you're right, these are numbers on a page and that's all they are without any more information that shows that that money is actually in that account or um that the balance reflects what is on the report.

And so being able to strengthen um our existing ordinances to provide more transparency uh is something that I would support.

Um obviously if there's additional costs, we'd want to know what those are and and how that's going to be absorbed and paid for.

But um if there's something that didn't have a cost that we could implement that would allow for that information to be included in our reports or or a separate uh report that we file that shows that, uh I think we should we should pursue it.

Thank you.

Um and and I think uh to the first one, um uh since uh Daniel hasn't really uh been able to look into it, I'd love to talk to you more about it as well.

Councilmember Ramirez, and it sounds like Councilmember Castillo is interested as well uh to see what the cost would be, what what extra uh resources are actually needed.

Um shifting over to the uh to the filing, um I agree.

I think we should we should definitely be able to do that.

I I there was a little bit of a hesitation whenever you mentioned that you filed it on time, but you weren't you know, show up on that.

So I I don't know if it's uh city secretary would have knew that I filed on it.

I mean the city secretary knew I had filed on the on time.

It was just a matter of the of the technology, not having it up on the thing.

So and and I've I've shared this with you as well.

Um I'm supportive of of that uh change to the ordinance.

I think it is important that uh full transparency, you know, folks are filing their their reports on time.

Um it's it is a heavy lift for a lot of us, right?

We're still working uh around the horseshoe, but then still have to submit these documentations and so um if we can give Danielle uh opportunity to uh review them, uh maybe have uh uh meeting offline as well, and then I'm happy to be supportive on a prop A as well.

Uh so just to be clear, um is is there support for the City Secretary taking the additional action of reporting non-filing and late filing to the ethics commission?

Yes.

Okay, great.

Thank you.

Happy happy to talk uh further offline about the uh filing requirements with uh regarding the documents.

Thank you.

And you're in the queue right now.

All right.

So uh regarding the personal finance disclosure.

So um this is aimed at this is really uh more internal, having uh the city secretary alert the city attorney when um uh finance uh personal finance disclosure is not made or an incomplete disclosure is made.

And I understand the City Secretary doesn't really have the ability to delve into a person's finances.

However, there can be instances where it is pretty obvious that something is incomplete, for instance, if only the name has been filed or something like that.

That is a clear indication that that's not not a proper filing.

And so this would be more internal.

It would have the City Secretary tell the City Attorney who could then take some action when personal finance disclosure has not been made.

And same question, Daniel.

This is Section 18-26.

I have had the conversation with Councilmember Ramirez, and I am in full support of this as well.

I'm not sure if there's any conversations my colleagues want to have, but if you can just speak to it briefly, yes.

Again, you know, the legal department doesn't have a position on the proposal, but I it does seem like something that that can be accommodated because it is something that you know the City Secretary's office and the legal department do work closely already during sort of the April 30th process to to identify um, you know, individuals who haven't filed or need to file.

Um I will say, you know, the um oftentimes that information is not as static as one would think.

For example, we have had a lot of conversations during this particular personal uh financial disclosure statement filing period, because during this period of time at the beginning of the year, a lot of individuals left the city.

So the original list that we put together from HR as of the time of the deadline, some of those individuals didn't file, they were no longer at the city.

So I was like, those are all things that sort of logistically we do currently do and can continue to do.

Thank you.

Um if there's no uh comments from my colleagues that think uh you know other than a thumbs up that you might be supportive, uh I think it's something that I had conversations with you as well, Councilman Ramirez that I am supportive of this and would be happy to happy to uh support you on this.

Yes.

We can state your name.

I am Rashad Gimbrellam with the legal department as well.

Councilmember, I only wanted to address that your proposal is actually already codified in Chapter 145 of the local government code.

Uh you know, the City Secretary has an obligation when it comes to personal financial statements after 10 days of the closing of the filing period to come to the city attorney and let him or her know who has not filed a personal financial statement.

So while the language and the concept that you propose, there's nothing wrong with the law actually already covers that concept with respect to personal financial statements.

Um as Danielle mentioned, we have a a financial disclosure season.

You've got the personal financial statements that all council members must file.

You all are considered municipal officers under state law.

Um so moving forward, please don't submit a City of Houston financial disclosure statement when you are a council member, we're gonna have to send it back to you until you use the right form.

But we kind of have those two tracks.

We have the City of Houston financial disclosure statement, and then there is the State's personal financial statement.

That's what you all have to file.

If you have not filed it within 10 days of the closing of the filing period, or you haven't requested an extension of time, you are authorized to do that.

Several council members do that.

But if you haven't filed it by the time the deadline hits for you, the City Secretary already already has an obligation to reach out to the City Attorney.

And a failure to file a personal financial statement is one, both a criminal penalty and there is a possible civil penalty.

It's a Class B misdemeanor, and you could be fined up to 1,000 dollars.

So I just wanted to put that out there that while the concept I understand it, it's already memorialized in state law in detail.

It doesn't, the state law provision doesn't necessarily apply to an average covered city official, that's a defined term that is required to file a financial disclosure statement, but that concept is already applicable to all of you as municipal officers, that being everyone who is a member of City Council, the mayor, as well as the City Attorney.

And I appreciate that, uh Rashad.

Thank you for sharing that.

Uh what about the concept of completeness?

So if I file essentially just a cover sheet.

Is that is that sufficient?

So when it comes to the personal financial statements, the form is a little bit different in that it requires you to check off boxes, and if you don't have information to submit there, then you don't include those pages.

Um completeness really is something that we look for in terms of can we identify who the individual is, have they sufficiently provided all the information that is required in the form?

But what we can't say is whether or not you have certain holdings, stocks and whatnot.

But understandably so, we have looked at forms in the past where there was a name and it didn't even identify the occupation, and then it was just signed or not signed, to be frank with you.

We do reject those.

And by reject, I mean we reach out to the council office.

Um we typically correspond with the chief of staff and we identify any problems.

Um we are routinely in communication with individuals, reminding them about deadlines.

And if you have, you know, filed for an extension, typically the deadline is is up to or 60 days after the August, I'm sorry, the April 30th filing deadline.

So we start to send out emails to the council office just a gentle reminder.

You're coming up on your deadline.

On the city employee side, when people are typically filling out the city form to file their financial disclosure statements, you know, we really lean on the employees.

Again, there are certain things we're just not going to know whether or not you have certain holdings, but we have to be able to identify who this individual is.

There's going to be seven different John Smiths at the city.

So what department are you in?

What is your address?

What is your occupation?

Um beyond that, we really don't have the ability to get into verifying, you know, who are the members of your household.

Um do you have control of over 50 percent of their their assets and or income such that they need to be reported on the form?

But to answer your question, we do do an overview to make sure that we can identify who that individual is.

And if something frankly just doesn't look right or feels incomplete, or we have to look at it and say that they give a good faith effort in filling this out, we do reach out to the employee or the council office.

It's it's extremely rare that we have ever had that situation happen at the council office.

Quick question.

Uh just for clarification, Rashad.

You said that um if you are elected official, you don't have to fill out the city one, you just fill out the Right, right.

So I'm glad this is coming up because we we deal with this from time to time.

Each council member is required to file the state personal financial state personal financial statement.

Yes.

You cannot file the City of Houston financial disclosure statement form.

So what happens is, I believe the City Secretary hands out documents to each of you and you actually sign that you have received it.

The form you are receiving is the State personal financial statement.

You are obligated under Chapter 145 of the local government code to file that form, not the City of Houston financial statement.

So I want to make that that extremely clear.

And that form is usually Chief of Staff in certain executive levels.

Well, that that form is provided to typically, I believe either you directly and you sign for it from the City Secretary, or it comes to your Chief of Staff.

Got it.

It gets more complicated, so I don't I don't want to muddy the waters, but the Chief of Staff in your office does have an obligation to file a financial disclosure statement.

They can choose to file the State form or the City of Houston form.

You do not have that election.

You must file the State form as a council member.

Got it.

Uh Councilmember Alcorn?

Go ahead.

It's it's really on a separate subject, but if you'll allow me just something that that uh when we are talking about systems needing updated and everything, it's also um I understand the lobbyist list hasn't been up, isn't regularly updated and trying to figure out blackout periods and all that, just something else to throw out there.

Not to I I can't get ahead of what of what the administration is doing, and and frankly, we don't know.

But I I think the goal is for um there to be a new system that addresses campaign finance and perhaps lobbying first, and then we have already had some preliminary discussions about personal financial statements.

So I I think that's somewhat of the trajectory.

Um I I think what is going to be potentially different is that I think right now the legacy system requires you to engage it to the extent that it is a system.

Whereas I think moving forward, it may be a system where you are given an account number and you can engage the system such that you are working behind the scenes, you are working on your forms and whatnot, and then you have the ability to hit go live or whatever the case may be, and then it is uploaded.

So it kind of it gives you the opportunity to sit in the driver's seat and you make the determination when you are done by the deadline, um, and it is uploaded immediately.

So it it walks away from the legacy system where I think you are doing things manually, then currently, you know, the city secretary has an obligation to post it online, that's a requirement under state law.

We're we're back on campaign finance now.

I want to be very clear what what we're talking about.

So I I think those things are in the works, they're they're they're coming, um, but it's going to be a process.

With respect to personal financial statements, you know, the form is what it is from the State.

So I think there's some off-the-shelf kind of you know aspects to that where they could speed that up.

But when it comes to additional requirements, your concept about bank accounts and bank statements, things like that.

Um I think as Daniel pointed out, you know, we're kind of locked to the form that we're given.

Um I think it is Chapter 254 of Title 15 of the Elections Code.

But I think what you are talking about is potentially supplemental documentation that that would be provided as well.

So, you know, in in that regard, I think that is what Danielle is referring to, is that we would have to talk to the administration and perhaps you know the vendor or vendors to see what would have to be done to accommodate that type of request, understanding that after that, you know, all of the concerns Danielle has raised about you know privacy, confidentiality, um, what we would have to do to perhaps go to the Attorney General to get its opinion as to what the city's obligation is to disclose information if if it is requested.

So all of that, I think is part of the cost and the spool up to accommodate that type of request.

Thank you, Rashad.

And may I address that?

So I appreciate the uh uh the dialogue, um, Rashad.

So with regard to the pine personal financial disclosure, what happens procedurally if somebody files a a disclosure that has some boxes checked off, different categories, but then there's nothing behind that.

Well, in in in the personal financial statement aspect, if they checked off all the boxes, that's their indication that they don't have anything to disclose there.

So in theory, you could have a personal financial statement submitted by council member, the mayor and/or the city attorney.

Those are the people typically required to file the controller.

That's a uh a different discussion.

But let's stick with the definition of municipal officers, and that and that's who you are, the mayor, every member of City Council and the City Attorney.

If you have got the form, you have got your name, you have got your current occupation, um, and you have identified whatever other holdings you have, and you have checked off the appropriate boxes identifying the categories of the dollar value or the amount, and then you have signed the financial disclosure statement.

Either you have notarized it on the final page or you have filled out the unsworn declaration portion of it and you turn it in.

It is conceivable that that document may be four pages long.

And also conceivable that it might be incomplete.

Yeah.

Fully admitted that.

So yeah, that is kind of what I am getting at.

And thank you for correcting me.

It's been a couple months or a few months since since I did the last one.

But uh so you check off the box, that means you have nothing to report into that category.

That's correct.

So boxes aren't checked, but there's there is no other information uh and no other details.

What happened to the question?

You have on one page indicated that you haven't checked something, so it should be followed by those individual pages and just making the appropriate disclosures.

Um we we communicate with the council offices all the time.

Um the the irony here, I I understand and appreciate the the perspective of of of the uh the amendment that you are offering, but frankly, we pride ourselves in communicating with city employees.

We email them, we chase them routinely.

Um, and if necessary, we chase council members.

We we we we are constantly in communication with your office.

So we haven't had this issue in a very, very, very long time where people globally, but even specifically council members have not filed.

I chase the city attorney routinely, he does it always early.

Um we have never had the problem a problem with the mayor.

Um so I understand the concern, but we this is a non-issue from my perspective, having been involved for roughly the last sixteen years.

Um, the council offices are are are not our concern.

Thank you.

Okay.

So you are saying everybody pretty much follows follows the rules when you guys prompt them.

Yes.

And and uh and they do that.

Okay.

Yes.

And follows the rules, but by that I mean they filed it.

File something.

Yes.

Right.

Complete or not.

Yes.

But okay.

And I appreciate everything that you guys do.

Uh and in fact, I was going to mention that.

One of the things of going to a different platform for filing campaigns, uh, finance reports is that um you could include a tickler where you remind the candidates, hey, the deadline is coming up, you know, you need to get it filed by such and such date.

The State system has that in place.

So there should be no excuse for a candidate not filing.

But I appreciate the uh the dialogue, Rashad.

Yes.

Thank you.

Thank you, Councilor Ramirez.

Um and this this uh concludes really our presentation.

I wanted to see if there's anybody public comment.

Um if there is none, I do want to uh just mention to my colleagues we have been in communication with the administration about uh uh OIG process.

Um and that's something that we're looking at uh bringing to the next uh um committee meeting as well.

Uh so uh with that uh this concludes our our public comment portion.

Uh for any members that are uh watching, any members in the public that are watching, you can you can send questions or comments by emailing my office at district i at houstintx.gl.

And seeing no additional comments or questions from council members, we'll move to adjourn.

I want to thank everybody for participating.