MEETING DATE:
APRIL 14, 2026
SUBJECT:
Title
RESOLUTION NO. 2026-9567 -APPROVING UPDATES TO THE DESIGNATED FILER LIST TO ENSURE COMPLIANCE WITH SENATE BILL 827 (SB 827) ETHICS AND FISCAL TRAINING REQUIREMENTS
Body
Recommendation
Recommendation
ADOPT resolution approving designation of filers required to complete the financial literacy training as prescribed in Senate Bill 827.
Body
Board or Commission Action
Not Applicable
Executive Summary
Senate Bill 827 (SB 827) updates and expands California’s mandatory training requirements for local agency officials. The legislation modifies existing AB 1234 ethics training requirements and establishes a new statewide fiscal and financial training mandate for cities, including charter cities.
SB 827 expands the definition of “local agency official,” for ethics training purposes, to include department heads and similar administrative officers. It also requires additional fiscal and financial training for a broad range of local agency officials beginning January 1, 2026.
To ensure compliance with SB 827, staff has reviewed the City’s Designated Filer List and recommends City Council approval of updates identifying additional positions subject to ethics training requirements, and those subject to the new fiscal and financial training requirements.
Discussion
Under existing law (AB 1234), members of a local agency legislative body, elected officials receiving compensation or reimbursement, and designated employees must complete two hours of ethics training every two years.
SB 827 makes significant changes to the AB 1234 ethics training requirements and adds fiscal and financial training requirements. These changes are discussed in more detail below.
Changes to Ethics Training Requirements
SB 827 broadens the definition of “local agency official” to include department heads and similar administrative officers of local agencies, including charter cities. Beginning January 1, 2026:
o Official appointed or elected on or after January 1, 2026 must complete ethics training within six months of assuming office.
o The two-year renewal cycle remains in effect.
o Agencies must retain ethics training records for five years.
o By July 1, 2026, agencies with websites must post instructions and contact information explaining how the public may request training records.
o Officials serving multiple agencies may complete training once every two years but must provide proof to each agency.
New Fiscal and Financial Training Requirements
SB 827 establishes a new statewide requirement that certain local agency officials complete at least two hours of fiscal and financial training every two years.
For cities, this requirement applies to:
o Elected officers, and legislative body members
o Officials appointed by the City Council who make fiscal, budgeting, or public resource use decisions or recommendations
o Chief executive officers, and their assistant and deputy officers, department heads, and anyone whose position is based on an employment contract with the City
o Employees designated by the City Council
Officials in service before January 1, 2026 must complete fiscal training by January 1, 2028; officials assuming office on or after January 1, 2026 must complete training within six months of assuming office. In all cases, the training is required to be completed every two years thereafter.
The training must cover fiscal administration, municipal budgeting, financial reporting, capital financing, pensions and OPEB, revenue mechanisms, investments, procurement, contracting laws, and related financial stewardship principles. The City currently has a resource in place to provide this training.
City Filers
The City’s Designated Filer List identifies officials and employees subject to disclosure requirements under the Political Reform Act. While SB 827 is a training mandate rather than a financial disclosure requirement, implementation requires formal identification of covered positions to ensure consistent compliance tracking and governance oversight.
Staff has reviewed current classifications and recommends updating the Designated Filer List to include all the positions currently filing a Form 700 Conflict of Interest form.
The City Clerk and Human Resources will work together to ensure compliance with SB 827 by providing onboarding materials for new designated filers, tracking and retention system of training records and notifications regarding filing requirements. The City Clerk’s Office will coordinate with Human Resources and Department Directors to ensure compliance according to the law.
Environmental Review
The approval of an updated Designated Filer List is an administrative action and does not constitute a “project” under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378(b)(5), as it involves organizational or administrative activities that will not result in direct or indirect physical changes to the environment.
Fiscal Impact
SB 827 financial impacts will be absorbed within existing departmental budgets for administrative duties required from this new legislation.
Attachment(s)
Resolution
List of Designated Filers
Prepared by: Phillip Scollick, City Clerk
Reviewed by: Jill D. S. Maland, Assistant, City Attorney
Approved by: Michelle Bender, City Manager