BILL ANALYSIS Ó AB 481 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 481 (Gordon) As Amended August 13, 2012 2/3 vote ---------------------------------------------------------------------- |ASSEMBLY: | |(May 12, 2011) |SENATE: |38-0 |(August 30, 2012) | ---------------------------------------------------------------------- (vote not relevant) ------------------------------------------------------------------------ |COMMITTEE VOTE: |5-0 |(August 31, 2012) |RECOMMENDATION: |concur | |(E. & R.) | | | | | ------------------------------------------------------------------------ Original Committee Reference: E. & R. SUMMARY : Makes numerous substantive changes to state law governing independent expenditures (IEs) in campaigns. The Senate amendments delete the Assembly version of this bill, and instead: 1)Require every committee that makes an IE of $1,000 or more within 90 days before the election involving the candidate or measure that the IE supports or opposes, to file a report publicly disclosing that IE within 24 hours, regardless of whether the committee is required to file campaign reports online or electronically with the Secretary of State (SOS). 2)Require every candidate, controlled committee, or committee that is primarily formed or existing primarily to support or oppose a candidate or measure, that receives a contribution of $1,000 or more within 90 days before the election at which the candidate or measure is to be voted on, to file a report publicly disclosing the receipt of that contribution within 24 hours, regardless of whether the candidate or committee is required to file campaign reports online or electronically with the SOS. Require every political party committee that receives a contribution of $1,000 or more within 90 days before a state election to file a report publicly disclosing the receipt of that contribution within 24 hours, regardless of whether the committee is required to file campaign reports online or electronically with the SOS. AB 481 Page 2 3)Add the principal officers of campaign committees to a list of officials (including candidates, campaign treasurers, and elected officers) that are required to maintain detailed accounts, records, bills, and receipts necessary to prepare campaign statements, to establish that campaign statements were properly filed, and to comply with the other provisions of the Political Reform Act (PRA). Define the term "principal officer" for the purposes of the PRA. 4)Require a specified person, who is affiliated with a campaign committee that is required to disclose an IE on a campaign statement or report, to sign a verification on a report prescribed by the Fair Political Practices Commission (FPPC), declaring that the person has not received unreported contributions or reimbursements for making the IE, and has not coordinated any expenditure made during the reporting period with the candidate, proponent of the measure, or opponent of the candidate or measure, that is the subject of the IE. 5)Make every advertisement that is paid for by an IE under specified circumstances, regardless of the medium, subject to an existing requirement that currently applies only to broadcast and mass mailing advertisements, whereby the advertisement must include a disclosure of the name of the committee making the IE and the names of the two largest contributors of $50,000 or more to the committee making the IE, as specified. 6)Make corresponding changes. AS PASSED BY THE ASSEMBLY , this bill required a person who was collecting petition signatures to wear a badge indicating whether he or she was a paid signature gatherer or a volunteer signature gatherer, and required similar information be disclosed on any state or local initiative, referendum, or recall petition. FISCAL EFFECT : According to the Senate Appropriations Committee, the FPPC indicates minor, absorbable General Fund costs. COMMENTS : According to the author, "More and more, voters receive information from or see advertisements funded by ÝIE] committees. As with any information, it is important to know the source. In this case, voters should be entitled to know who is responsible for and financing these campaigns. According to the ÝFPPC], ÝIEs] have been on the rise in California politics at both the state and local AB 481 Page 3 level for the past decade. In June 2010, the ÝFPPC] issued a finding that $127 million had been spent on ÝIEs] in the previous ten years?.This growth of ÝIEs] makes appropriate disclosure all the more necessary. In order for voters to make fully informed decisions, it is important that they know, in a timely manner, who if not the candidate, is paying for the political messaging." California voters passed an initiative, Proposition 9, in 1974 that created the FPPC and codified significant restrictions and prohibitions on candidates, officeholders and lobbyists. That initiative is commonly known as the PRA. Most amendments to the PRA that are not submitted to the voters, including those contained in this bill, must further the purposes of the initiative and require a two-thirds vote of both houses of the Legislature. This bill was substantially amended in the Senate and the Assembly-approved provisions of this bill were deleted. As a result, this bill was re-referred to the Assembly Elections and Redistricting Committee pursuant to Assembly Rule 77.2, and the committee subsequently recommended that the Assembly concur in the Senate amendments to this bill. Please see the policy committee analysis for a full discussion of this bill. Analysis Prepared by : Ethan Jones / E. & R. / (916) 319-2094 FN: 0005876