BILL ANALYSIS Ó
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
AB 481 (Gordon) - Campaign Financing
Amended: August 13, 2012 Policy Vote: E&CA 5-0
Urgency: No Mandate: No
Hearing Date: August 16, 2012
Consultant: Maureen Ortiz
SUSPENSE FILE.
Bill Summary: AB 481 requires each campaign committee to
identify its principal officer, changes the definition of "late
contribution", and requires disclosure statements from
advertisements which are paid for by independent expenditure
that support or oppose candidates or ballot measures.
Fiscal Impact:
The Fair Political Practices Commission (FPPC) indicates
minor, absorbable costs. (General)
Background: Existing law requires that a statement of
organization for a campaign committee disclose the full name,
street address, and telephone number of the treasurer or
principal officer, and requires candidates and state ballot
measure proponents to verify their campaign statements.
Existing law defines "late contribution" and "late independent
expenditure" as any contribution or independent expenditure
totaling in the aggregate $1,000 or more that is made for or
against any specific candidate, committee, or measure involved
in an election that is made or received before the date of the
election but after the closing date of the last campaign
statement required to be filed prior to the election.
Independent expenditures of $1,000 or more made to state
candidates or measures up to 90 days prior to an election must
be reported within 24 hours. However, for local candidates or
measures, only those expenditures made during the 16 days before
an election are required to be reported within 24 hours.
Existing law requires that broadcast and mass mailing
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advertisements which are paid for by an independent expenditure
that are supporting or opposing candidates or ballot measures
disclose the name of the committee, and the names of the persons
from whom the committee making the independent expenditure has
received its two highest cumulative contributions of $50,000 or
more during the 12 month period prior to the expenditure.
Proposed Law: AB 481 makes several changes to update campaign
reporting as follows:
1) Requires each campaign committee that is required to file a
campaign statement to identify its principal officer who must
sign the following verification: "I have not received any
unreported contributions or reimbursement to make these
independent expenditures. I have not coordinated any
expenditure made during this reporting period with the candidate
or the opponent of the candidate who is the subject of the
expenditure, with the proponent or the opponent of the state
measure that is the subject of the expenditure, or with the
agents of the candidate or the opponent of the candidate or the
state measure proponent or opponent."
2) Redefines "late contribution" and "late independent
expenditure" as one made within 90 days before the date of the
election at which the candidate or measure is to be voted on.
In addition, the bill will require that a report of a late
independent expenditure also disclose the cumulative total the
committee has expended for independent expenditures relating to
the candidate or measure.
3) Requires any advertisements which are paid for by an
independent expenditure that are supporting or opposing
candidates or ballot measures to disclose the name of the
committee, and the names of the persons contributing the two
highest cumulative contributions of $50,000 or more.
Staff Comments: Proposition 34 and Growth of Independent
Expenditures : In 2000, the Legislature enacted SB 1223
(Burton), Chapter 102/2000, which became Proposition 34 on the
November 2000 General Election ballot. The proposition, which
passed with 60 percent of the vote, made numerous substantive
changes to the Political Reform Act, including enacting new
campaign disclosure requirements and establishing new campaign
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contribution limits, and limiting the amount that individuals
could contribute to state campaigns (ranging from $3,000 to
$20,000 per election at the time, depending on the office).
A study done by the Assembly Elections and Redistricting
Committee in 2006 and a subsequent report by the Fair Political
Practices Commission (FPPC) found that since campaign
contribution limits went into effect in California with the
passage of Proposition 34, the amount of campaign spending done
through independent expenditures increased by more than 6,000
percent in legislative elections, and more than 5,500 percent in
statewide elections. On the other hand, prior to the enactment
of contribution limits as a part of Proposition 34, independent
expenditures were relatively rare.
Independent Expenditure Reports are filed online with the
Secretary of State by state electronic filers during the 90 days
prior to an election. The forms are filed online or faxed to
local clerks during the 16 days before an election, unless local
law requires a longer period. The reports are filed on a
transaction-by-transaction basis, and they disclose isolated
independent expenditures as they are made. Third parties who
are interested in tracking independent expenditures must add the
amounts spent on successive reports together to get the total
independent expenditures by a committee or entity on a
particular candidate or measure.
AB 481 would require the cumulative total a committee or entity
has spent in independent expenditures on a candidate or measure
supported or opposed to be displayed on the Independent
Expenditure Report, in addition to the amount of the most recent
independent expenditure. This information is already available
and tracked by independent expenditure committees. Accordingly,
the additional disclosure will provide significant benefit to
the public while posing little burden on filers.