BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                AB 800
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        ASSEMBLY THIRD READING
        AB 800 (Gordon)
        As Amended April 30, 2013
        2/3 vote 

         ELECTIONS           5-2         APPROPRIATIONS      12-5        
         
         ----------------------------------------------------------------- 
        |Ayes:|Fong, Bocanegra, Bonta,   |Ayes:|Gatto, Bocanegra,         |
        |     |Hall, Perea               |     |Bradford,                 |
        |     |                          |     |Ian Calderon, Campos,     |
        |     |                          |     |Eggman, Gomez, Hall,      |
        |     |                          |     |Ammiano, Pan, Quirk,      |
        |     |                          |     |Weber                     |
        |     |                          |     |                          |
        |-----+--------------------------+-----+--------------------------|
        |Nays:|Donnelly, Logue           |Nays:|Harkey, Bigelow,          |
        |     |                          |     |Donnelly, Linder, Wagner  |
        |     |                          |     |                          |
         ----------------------------------------------------------------- 
         SUMMARY  :  Makes numerous significant changes to the Political Reform  
        Act of 1974 (PRA).  Specifically,  this bill  :  

        1)Provides that a committee is presumed to be a controlled committee  
          of a candidate if the candidate or his or her agent satisfies any  
          of the following conditions:

           a)   Is a voting member of the committee's governing body;

           b)   Is involved in the decisionmaking of the committee, or the  
             development or implementation of the committee's campaign  
             strategy; or,

           c)   Is substantially involved in directing the day-to-day  
             operations of the committee.

        2)Requires subagents and subcontractors that make expenditures on  
          behalf of or for the benefit of a candidate or committee to make  
          known to the agent or independent contractor of the candidate  
          information about those expenditures.

        3)Extends, for a period of 90 days, the period of time before  









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          campaign funds that are under the control of a former candidate or  
          elected officer become surplus campaign funds, and thus subject to  
          additional restrictions on how those funds can be spent.

        4)Repeals a provision of law that prohibits the Fair Political  
          Practices Commission (FPPC) from beginning audits or  
          investigations of certain entities prior to the election.

        5)Allows the FPPC and the Franchise Tax Board (FTB) to make audits  
          and investigations regarding any statement or report that is  
          required by any provision of the PRA, instead of allowing such  
          audits and investigations only of specified statements or reports.

        6)Extends, from one year to two years, the limit on the amount of  
          time that the FTB has to complete its report of any audit that it  
          conducts under specified provisions of the PRA.

        7)Prohibits the FPPC and its staff from divulging or making known in  
          any manner the particulars of any information that it receives as  
          part of an audit or investigation conducted pursuant to the PRA,  
          except in furtherance of the work of the FPPC or in connection  
          with a court proceeding or the lawful investigation of any agency.

        8)Permits the FPPC, and the FTB at the direction of the FPPC, to  
          audit any record required to be maintained under the PRA to ensure  
          compliance with the PRA prior to an election, even if the record  
          or statement has not yet been filed.  Permits the FPPC, to further  
          the purposes of this provision, to seek injunctive relief in  
          superior court to compel disclosure.  Permits a superior or  
          appellate court to grant a stay of an order granting relief  
          pursuant to these provisions.  Requires the court to grant  
          expedited review to an action filed pursuant to this procedure, as  
          specified.

         FISCAL EFFECT  :  According to the Assembly Appropriations Committee,  
        any additional costs to the FPPC will be minor and absorbable.

         COMMENTS  :  According to the author, "More and more, voters receive  
        information from or see advertisements funded by entities other than  
        the candidate for office or the committee proposing a ballot  
        measure.  It is vital for a fully informed electorate that the  
        public knows, in a timely manner, who if not the candidate or ballot  









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        measure committee, is paying for political messaging. Moreover,  
        there must be a means of inhibiting improper practices and holding  
        entities involved with election campaigns accountable?.AB 800  
        contains several distinct changes to the Political Reform Act  
        intended to clarify the Fair Political Practices Commission's  
        authority to carry out the provisions of the PRA in a manner that  
        ensures information is provided to the public in an expedited manner  
        prior to elections."

        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 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. 

        This bill additionally gives the FPPC the authority to audit any  
        record that is required to be maintained prior to an election in  
        order to ensure compliance with the PRA, and permits the FPPC to  
        make investigations and audits with respect to any report or  
        statement that is required to be filed pursuant to the PRA.   
        Finally, this bill repeals a prohibition against an audit or  
        investigation of a candidate, controlled committee, or committee  
        primarily supporting or opposing a candidate or measure in  
        connection with a report or statement required by certain provisions  
        of the PRA from being commenced prior to the election.  
         
        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.  Amendments to the PRA that  
        are not submitted to the voters, such as those contained in this  
        bill, must further the purposes of the initiative and require a  
        two-thirds vote of both houses of the Legislature.

        Please see the policy committee analysis for a full discussion of  









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        this bill.


         Analysis Prepared by  :    Ethan Jones / E. & R. / (916) 319-2094 


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