BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 800
                                                                  Page  1

          Date of Hearing:   May 8, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                    AB 800 (Gordon) - As Amended:  April 30, 2013 

          Policy Committee:                              ElectionsVote:5-2

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill makes several modifications to the Political Reform  
          Act (PRA), including:

          1)Enumerating specified circumstances that establish a committee  
            is presumed to be a controlled committee of a candidate. These  
            provisions are consistent with formal advice previously  
            provided in this regard by the Fair Political Practices  
            Commission (FPPC).

          2)Requiring subagents and subcontractors making expenditures on  
            behalf of a candidate or committee to inform the agent or  
            independent contractor of the candidate about those  
            expenditures, and requiring the agent or independent  
            contractor to make this information available to the candidate  
            or committee not later than three working days prior to the  
            filing deadline for the campaign statement. If an expenditure  
            is required to be reported within 24 hours of the time it is  
            made, the agent or independent contractor must make this  
            information available to the candidate or committee within 24  
            hours.

          3)Extending, for 90 days, the time before campaign funds under  
            the control of a former candidate or elected officer become  
            surplus campaign funds, and are thus subject to additional  
            restrictions on expenditure of those funds.

          4)Repealing a prohibition on the FPPC beginning audits or  
            investigations of certain entities prior to the election.

          5)Allowing the FPPC and the Franchise Tax Board (FTB) to make  
            audits and investigations regarding any statement or report  








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            required by the PRA, instead of allowing audits and  
            investigations only of specified statements or reports.

          6)Extending, from one to two years, the time FTB has to complete  
            its report of any audit conducted under specified provisions  
            of the PRA. 

          7)Permitting the FPPC and the FTB to audit any PRA-related  
            record to ensure compliance with the PRA prior to an election,  
            permitting the commission to seek injunctive relief in  
            superior court to compel disclosure in furtherance of the PRA,  
            and requiring the court to grant expedited review to an action  
            filed pursuant to this procedure.

           FISCAL EFFECT  

          Any additional costs to the FPPC will be minor and absorbable.

           COMMENTS 

           1)Purpose  . This bill makes a number of significant changes to  
            state law governing audits and investigations that are  
            conducted under the PRA.  Some of these provisions appear to  
            be in response, in part, to an $11 million campaign  
            contribution made to the Small Business Action Committee PAC  
            (SBAC PAC) three weeks prior to the November 2012 statewide  
            general election.

            This bill gives the FPPC additional tools to ensure compliance  
            with the PRA by permitting the commission to seek injunctive  
            relief to compel disclosure required by the PRA, and by  
            requiring the court to grant expedited review to any such  
            action to ensure disclosure of campaign contributions and  
            expenditures prior to an election. The bill also gives the  
            FPPC additional auditing authority.

            For a thorough discussion of the policy rationale for each of  
            these changes to the PRA, see the Assembly Elections Committee  
            analysis of this bill.

           2)Related Legislation  . AB 45 (Dickinson), also on today's  
            committee agenda, makes numerous changes to the Political  
            Reform Act (PRA) regarding reporting of payments by  
            multipurpose organizations, adjusting minimum thresholds for  
            reporting campaign contributions, and authorizing the FPPC to  








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            seek court actions to compel disclosures.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081