BILL ANALYSIS AB 1514 Page 1 Date of Hearing: May 13, 2009 ASSEMBLY COMMITTEE ON APPROPRIATIONS Kevin De Leon, Chair AB 1514 (Hayashi) - As Amended: April 28, 2009 Policy Committee: ElectionsVote:6-0 Urgency: No State Mandated Local Program: Yes Reimbursable: No SUMMARY This bill amends the Political Reform Act (PRA) to enhance reporting requirements for campaign committees and slate mailer organizations. Specifically, this bill: 1)Requires state campaign committees that are required to file campaign reports electronically with the Secretary of State (SOS)-during the last 90 days before an election in which the committee is making contributions or independent expenditures in connection with a candidate or measure on the ballot-to report within 24 hours following the receipt of any contribution of $1,000 or more. This is the same as the existing requirements for candidates for state office and committees formed primarily to support or oppose state ballot measures. 2)Requires committees subject to (1) to report electronically within 10 business days of receiving any contribution of $5,000 or more at any time other then 90 days before an election. 3)Requires slate mailer organizations to file semi-annual campaign statements regardless of the amount of payments received or expenditures made to produce slate mailers. 4)Subjects slate mailer organizations that are required to file campaign reports online and that have received payments in connection with an election cycle to the same reporting deadlines and dollar limits imposed in (1) and (2) on campaign committees. FISCAL EFFECT AB 1514 Page 2 Minor absorbable costs to the SOS and to the Fair Political Practices Commission, which enforces the PRA. COMMENTS 1)Background . SB 49 (Karnette)/Chapter 866 of 1997 required the SOS to develop a process whereby reports and statements required under the PRA could be filed online and viewed by the public. SB 49 also required certain candidates, committees, slate mailer organizations, lobbyists, lobbyist employers, and lobbying firms to file campaign reports online. AB 696 (Longville)/Chapter 917 of 2001 required the SOS to provide a means whereby individuals subject to mandatory electronic or online filing may submit required filings free of charge. While AB 696 required the free filing option to be developed by December 31, 2002, the SOS did not report completing the free filing option until February 1, 2007. 2)Purpose . The sponsor of AB 1514, the SOS, argues that it is appropriate to make the "election cycle" reporting requirements that currently apply only to candidates and primarily formed ballot measure committees applicable to all committees. In support of such a policy, the SOS argues that the development of the free filing system eliminates the rationale for excluding other committees from this "election cycle" reporting. 3)Related Legislation . AB 1181 (Huber), also on today's committee agenda, lowers the monetary thresholds that trigger mandatory electronic reporting (as opposed to allowing paper reporting) of campaign contributions and expenditures by candidates, officeholders, major donors, and slate mailer organizations. Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081