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