HomeMy WebLinkAbout03 - Electronic and Paperless Filing of FPPC Campaign Disclosure StatementsPO CITY OF
NEWPORT BEACH
�q- City Council Staff Report
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February 13, 2018
Agenda Item No. 3
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Leilani I. Brown, City Clerk - 949-644-3005,
(brown@newportbeachca.gov
PREPARED BY: Leilani I. Brown, City Clerk
TITLE: Electronic and Paperless Filing of Fair Political Practices
Commission Campaign Disclosure Statements
ABSTRACT -
Elected officers, candidates and committees (collectively "Committees) can file campaign
disclosure statements which require an original filing with the City Clerk's Office
electronically through a new online system to be implemented prior to December 31,
2018.
RECOMMENDATION:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because
this action will not result in a physical change to the environment, directly or indirectly;
and
b) Introduce Ordinance No. 2018-1, An Ordinance of the City Council of the City of
Newport Beach, California, Adding Chapter 1.26 to the Newport Beach Municipal
Code Relating to Electronic and Paperless Filing of Fair Political Practices
Commission Campaign Disclosure Statements, and pass to second reading on
February 27, 2018.
FUNDING REQUIREMENTS:
An annual payment of $12,500 will be paid to NetFile to develop and maintain a system
that permits the City of Newport Beach and users to electronically file FPPC campaign
disclosure statements for committees that have a responsibility to file with the City of
Newport Beach. This system also includes an online filer application, administrative
portal, and public viewing portal. The City Clerk's Office will also be utilizing NetFile for
electronic economic disclosure statements.
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Electronic and Paperless Filing of Fair Political Practices
Commission Campaign Disclosure Statements
February 13, 2018
Page 2
DISCUSSION:
On January 1, 2013, Assembly Bill 2452 went into effect adding Section 84615 to the
California Government Code, which allows local government agencies to require an
elected officer, candidate, or committee (hereinafter referred to as "committees") to file
statements, reports, or other documents online or electronically with its local filing officer.
California Government Code Section 84615 requires local jurisdictions that use and
accept electronic campaign filings to enact an ordinance with required findings approving
the use of an electronic system, which includes that the system will operate securely and
effectively and will not unduly burden filers. Furthermore, certain defined criteria are
prescribed that must be satisfied by a local government agency, including that the system
be available free of charge to filers, available to the public to view filings, and include
procedures for filers to comply with the requirement that they sign statements and reports
under penalty of perjury. Since the passage of AB2452, local government agencies
throughout California have chosen to enact paperless filing, including the cities of
Anaheim, Sacramento, San Diego, San Bernardino, Santa Rosa, Fresno, Huntington
Beach, Oakland, Oceanside, and West Sacramento, as well as the City and County of
San Francisco and the Counties of Riverside, Ventura, Marin, and Butte.
Although California Government Code Section 84615 authorizes a local agency to
mandate electronic filing, staff recognizes that such mandates could have a direct effect
on those committees or individuals who do not have computer access or familiarity with
computer programs. To prevent any hardship, staff recommends the Council approve an
Opt-In/Out program with the caveat that the "opt -out" option becomes void as of
December 31, 2018.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not
result in a direct or reasonably foreseeable indirect physical change in the environment)
and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA
Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no
potential for resulting in physical change to the environment, directly or indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
ATTACHMENTS:
Attachment A — Ordinance No. 2018-1
Attachment B — California Government Code Section 84615
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ATTACHMENT A
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH, CALIFORNIA, ADDING CHAPTER
1.26 TO THE NEWPORT BEACH MUNICIPAL CODE
RELATING TO ELECTRONIC AND PAPERLESS FILING
OF FAIR POLITICAL PRACTICES COMMISSION
CAMPAIGN DISCLOSURE STATEMENTS
WHEREAS, the City of Newport Beach ("City") desires to add the option of filing
Campaign Disclosure Statements by elected officials, candidates, or committees
electroncially;
WHEREAS, California Government Code Section 84615 allows the City Council
to adopt an ordinance that requires an elected officer, candidate, or committee, required
to file original statements, reports, or other documents required by Chapter 4 of the
Political Reform Act to file such statements, reports or other documents online or
electronically with the City Clerk;
WHEREAS, in any instance in which the original statement is required to be filed
with the Secretary of State and a copy of that statement is required to be filed with the
City, the ordinance may permit, but shall not require, that the copy be filed online or
electronically;
WHEREAS, the City Council finds and determines that the City Clerk will use a
web -based system that contains multiple safeguards to protect the integrity and security
of the data, and will operate securely and effectively and will not unduly burden filers; and
WHEREAS, the City Clerk will operate the electronic filing system in compliance
with the requirements of California Government Code Section 84615 and any other
applicable laws.
NOW THEREFORE, the City Council of the City of Newport Beach ordains as
follows:
Section 1: Chapter 1.26 of the Newport Beach Municipal Code ("NBMC") is
hereby added to Title I to read as follows:
ELECTRONIC FILING OF CAMPAIGN DISCLOSURE STATEMENTS
Sections:
1.26.010 DEFINITIONS
1.26.020 GENERAL
1.26.030 PROCEDURES FOR UTILIZING ONLINE FILING
1.26.040 AVAILABILITY OF STATEMENTS FOR PUBLIC REVIEW;
RECORD RETENTION
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Ordinance No. 2018-1
Page 2 of 4
1.26.010 DEFINITIONS
Unless otherwise defined below, the terms used in this chapter shall have the
same definitions as specified in the Political Reform Act (California Government
Code Section 81000 et seq.) and FPPC regulations (California Code of
Regulations Title 2, Division 6), or any successor statutes or regulations. In those
cases where definitions in the Political Reform Act or FPPC regulations contain a
specific reference to any State election, candidate, or electoral criteria, the
definition shall be modified to reflect the municipal equivalent, or, in the absence
of a municipal equivalent, to delete the specific reference.
"Statements" means statements, reports, or other documents required by Chapter
4 of the Political Reform Act (California Government Code Section 84100 et seq.)
or any successor statute.
"City Clerk's online system" means the web -based filing system utilized by the
Newport Beach City Clerk's Office for the submission of statements, reports or
other documents required by Chapter 4 of the Political Reform Act (California
Government Code Section 84100 et seq.) or any successor statute.
1.26.020 GENERAL
A. Any elected officer, candidate, or committee required to file original
Statements with the Newport Beach City Clerk's Office 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 California Government Code Section 84615. From
and after December 31, 2018, elected officers, candidates and committees
required to file original Statements with the City Clerk must file such Statements
using the City Clerk's online system, unless exempt from the requirement to file
online pursuant to California Government Code Subsection 84615(a), or any
successor statute, because the officer, candidate or committee receives less than
$1,000 in contributions and makes less than $1,000 in expenditures in a calendar
year.
B. The City Clerk's online system shall ensure the integrity of the data
transmitted and shall include safeguards against efforts to tamper with,
manipulate, alter, or subvert the data.
C. The City Clerk's online system shall only accept a filing in the standardized
record format that is developed by the California Secretary of State pursuant to
California Government Code Subsection 84602(a)(2), or any successor statute,
and that is compatible with the Secretary of State's system for receiving an online
or electronic filing.
1.26.030 PROCEDURES FOR UTILIZING ONLINE FILING
A. Until December 30, 2018, an elected officer, candidate, or committee may
choose to opt -in to 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, or any successor statute. Once the elected officer, candidate or
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Ordinance No. 2018-1
Page 3 of 4
committee has opted -in, all subsequent Statements shall be filed electronically.
An elected officer, candidate, or committee may opt -out of the electronic filing
system by filing original Statements in paper format with the City Clerk, Thereafter
the elected officer, candidate or committee shall file all original Statements in paper
format with the City Clerk. From and after December 31, 2018, electronic filing is
mandatory unless the officer, candidate or committee is exempt as described in
NBMC Section 1.26.010(A), or any successor statute.
B. Any elected officer, candidate, or committee 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. Any elected officer, candidate, or committee who is required to file an
original Statement with the California Secretary of State and a copy of that
Statement with the City Clerk's Office may, but is not required to, file the copy of
the required Statement using the City Clerk's online system.
D. The City Clerk's online system 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.
E. If the City Clerk's online system is not capable of accepting a Statement, an
elected officer, candidate, or committee shall file that Statement in paper format
with the City Clerk.
F. The City Clerk's online system shall enable electronic filers to complete and
submit filings free of charge.
1.26.040 AVAILABILITY OF STATEMENTS FOR PUBLIC REVIEW;
RECORD RETENTION
A. The City Clerk's online system shall make all the data filed available on the
Internet in an easily understood format that provides the greatest public access.
The data shall be made available free of charge and as soon as possible after
receipt. The data made available on the Internet shall not contain the street name
of the persons or entity representatives listed on the electronically filed forms or
any bank account number required to be disclosed by the filer.
B. From the date filed, the City Clerk's Office shall maintain a secured, official
version of each online or electronic statement which shall serve as the official
version of that record for purpose of audits pursuant to the City's Records
Retention Schedule.
Section 2: The City Council finds the introduction and adoption of this ordinance
is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections
15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect
physical change in the environment) and 15060(c)(3) (the activity is not a project as
defined in Section 15378) of the CEQA Guidelines, California Code of Regulations,
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Ordinance No. 2018-1
Page 4 of 4
Title 14, Chapter 3, because it has no potential for resulting in physical change to the
environment, directly or indirectly.
Section 3: If any section, subsection, sentence, clause or phrase of this
ordinance is for any reason held to be invalid or unconstitutional, such decision shall not
affect the validity or constitutionality of the remaining portions of this ordinance. The City
Council hereby declares that it would have passed this ordinance and each section,
subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or
more sections, subsections, sentences, clauses or phrases be declared invalid or
unconstitutional.
Section 4: Except as expressly modified in this ordinance, all other Sections,
Subsections, terms, clauses and phrases set forth in the NBMC shall remain unchanged
and shall be in full force and effect.
Section 5: The Mayor shall sign and the City Clerk shall attest to the passage
of this ordinance. The City Clerk shall cause the ordinance, or a summary thereof, to be
published pursuant to City Charter Section 414.
This ordinance was introduced at a regular meeting of the City Council of the City
of Newport Beach held on the 13th day of February, 2018, and adopted on the 27th day
of February, 2018, by the following vote, to-wit.-
AYES,
o-wit:
AYES, COUNCILMEMBERS
NOES, COUNCILMEMBERS
ABSENT COUNCILMEMBERS
MARSHALL "DUFFY" DUFFIELD, MAYOR
ATTEST:
LEILANI I. BROWN, CITY CLERK
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
AARON C. HARP, CITY ATTORNEY
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I� STATE OF CALIFORNIA ATTACHMENT B
L 'AUTHENTICATED
BUR- ELECTRONIC LEGAL MATERIAL
State of California
GOVERNMENT CODE
Section 84615
84615. A local government agency may require an elected officer, candidate,
committee, or other person required to file statements, reports, or other documents
required by Chapter 4 (commencing with Section 84100), except an elected officer,
candidate, committee, or other person who receives contributions totaling less than
one thousand dollars ($1,000), and makes expenditures totaling less than one thousand
dollars ($1,000), in a calendar year, to file those statements, reports, or other documents
online or electronically with a local filing officer. A local government agency that
requires online or electronic filing pursuant to this section shall comply with all of
the following:
(a) The legislative body for the local government agency shall adopt an ordinance
approving the use of online or electronic filing, which shall include a legislative
finding that the online or electronic filing system will operate securely and effectively
and would not unduly burden filers. The ordinance adopted by the legislative body
for the local government agency may, at the discretion of that legislative body, specify
that the electronic or online filing requirements apply only to specifically identified
types of filings or are triggered only by identified monetary thresholds. In any instance
in which the original statement, report, or other document is required to be filed with
the Secretary of State and a copy of that statement, report, or other document is
required to be filed with the local government agency, the ordinance may permit, but
shall not require, that the copy be filed online or electronically.
(b) The online or electronic filing system shall only accept a filing in the
standardized record format that is developed by the Secretary of State pursuant to
paragraph (2) of subdivision (a) of Section 84602 and that is compatible with the
Secretary of State's system for receiving an online or electronic filing.
(c) The online or electronic filing system shall ensure the integrity of the data
transmitted and shall include safeguards against efforts to tamper with, manipulate,
alter, or subvert the data.
(d) (1) The local filing officer shall issue to a person who files a statement, report,
or other document online or electronically an electronic confirmation that notifies the
filer that the statement, report, or other document was received. The confirmation
shall include the date and the time that the statement, report, or other document was
received by the filing officer and the method by which the filer may view and print
the data received by the filing officer.
(2) A copy retained by the filer of a statement, report, or other document that was
filed online or electronically and the confirmation issued pursuant to paragraph (1)
that shows the filer timely filed the statement, report, or other document shall create
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a rebuttable presumption that the filer timely filed the statement, report, or other
document.
(e) The date of filing for a statement, report, or other document that is filed online
or electronically shall be the day that it is received by the local filing officer.
(f) The local filing officer shall make all the data filed available on the Internet in
an easily understood format that provides the greatest public access. The data shall
be made available free of charge and as soon as possible after receipt. The data made
available on the Internet 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 local filing officer shall
make a complete, unredacted copy of any statement, report, or other document filed
pursuant to this section, including any street names, building numbers, and bank
account numbers disclosed by the filer, available to any person upon request.
(g) The online or electronic 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.
(h) The local government agency shall enable filers to complete and submit filings
free of charge.
(i) The local filing officer shall maintain, for a period of at least 10 years
commencing from the date filed, a secured, official version of each online or electronic
statement, report, or other document filed pursuant to this section, which shall serve
as the official version of that record for purpose of audits and any other legal purpose.
Data that has been maintained for at least 10 years may then be archived in a secure
format.
0) Notwithstanding any other provision of law, any statement, report, or other
document filed online or electronically pursuant to this section shall not be required
to be filed with the local filing officer in paper format.
(Added by Stats. 2012, Ch. 126, Sec. 1. (AB 2452) Effective January 1, 2013.)
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