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Home My WebLink About03 - Electronic and Paperless Filing of FPPC Campaign Disclosure StatementsSEW PART CITY OF z NEWPORT BEACH <,FoaN'P City Council Staff Report February 27, 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: The second reading and adoption of Ordinance No. 2018-1 would authorize the City to utilize an electronic filing system for elected officers, candidates, and committees to file their campaign disclosure statements, pursuant to California Government Code Section 84615. 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) Conduct second reading and adopt 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. 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. DISCUSSION: 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. On February 13, 2018, the City Council introduced and passed to second reading Ordinance No. 2018-1. 3-1 Electronic and Paperless Filing of Fair Political Practices Commission Campaign Disclosure Statements February 27, 2018 Page 2 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). ATTACHMENT: Attachment A — Ordinance No. 2018-1 3-2 ATTACHMENT A 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 WHEREAS, the City of Newport Beach ("City") desires to add the option of filing Campaign Disclosure Statements by elected officials, candidates, or committees electronically; 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 1 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 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. 3-3 Ordinance No. 2018-1 Page 2 of 4 "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 shall 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, 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 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. M Ordinance No. 2018-1 Page 3 of 4 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, 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. 3-5 Ordinance No. 2018-1 Page 4 of 4 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, 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 M