BILL ANALYSIS                                                                                                                                                                                                    Ó



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          SENATE THIRD READING
          SB 1103 (Padilla)
          As Amended  August 14, 2014
          2/3 vote 

           SENATE VOTE  :34-1  
           
           ELECTIONS           6-0         APPROPRIATIONS      16-1        
           
           ----------------------------------------------------------------- 
          |Ayes:|Fong, Donnelly, Bonta,    |Ayes:|Gatto, Bigelow,           |
          |     |Hall, Perea, Rodriguez    |     |Bocanegra, Bradford, Ian  |
          |     |                          |     |Calderon, Campos,         |
          |     |                          |     |Donnelly, Eggman, Gomez,  |
          |     |                          |     |Holden, Jones, Linder,    |
          |     |                          |     |Pan, Quirk, Wagner, Weber |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |Nays:|Ridley-Thomas             |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 

           SUMMARY :  Prohibits an elected state officer or a candidate for  
          elected state office from having campaign contribution accounts  
          open to run for more than one elective state office at the same  
          election, or from opening a campaign contribution account to run  
          for elective state office at an election that is more than four  
          years in the future.  Specifically,  this bill  :   

          1)Provides that if an individual has previously filed a  
            statement of intention to be a candidate for an elective state  
            office, and that individual subsequently files a statement of  
            intention to be a candidate for a different elective state  
            office to be voted on at the same election, the filing of the  
            second statement of intention shall constitute a revocation of  
            the previously filed statement of intention.  Provides that  
            the individual shall not thereafter solicit or receive a  
            contribution or a loan for the elective state office for which  
            he or she previously filed a statement of intention to be a  
            candidate.  Provides that a revocation of a statement of  
            intention pursuant to this provision is effective 31 days  
            after the filing of the subsequent statement of intention.   
            Provides that any funds remaining in a campaign contribution  
            account associated with the revoked statement of intention  








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            shall be treated as surplus funds, in accordance with existing  
            law.

          2)Prohibits an individual from filing, and prohibits the  
            Secretary of State from accepting, either of the following:

             a)   A statement of intention to be a candidate for the  
               office of Member of the Assembly at an election other than  
               the next two elections at which the office will appear on  
               the ballot; or,

             b)   A statement of intention to be a candidate for an  
               elective state office other than the office of Member of  
               the Assembly at an election other than the next election at  
               which that elective state office will appear on the ballot.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, any costs to the Fair Political Practices Commission  
          (FPPC) for monitoring and enforcement should be minor and  
          absorbable.

           COMMENTS  :  According to the author, "There is a need to build  
          and restore government trust in the election process.  The  
          belief that money buys influence from elected legislators has  
          led to laws that attempt to diminish the influence of money.   
          Currently, the [Political Reform Act (PRA)] limits campaign  
          contributions to $4,100 per person for candidates or office  
          holders that are running for California State Senate and  
          Assembly.  Candidates running for statewide constitutional  
          offices have contribution limits of $6,800 per person, with the  
          exception of the Governor who has a limit of $26,000.  Despite  
          the contribution limits, an individual who decides to open two  
          candidate-controlled committees can cumulatively generate more  
          money than what is legally permitted and undermine the  
          effectiveness of existing campaign contribution limits.

          "Currently, it is legal to declare an intention to run for more  
          than one office at a time.  By simply expressing the intent to  
          run for multiple offices an official may open multiple campaign  
          committees.  These multiple campaign committees can potentially  
          be used to cumulatively raise funds far in excess of the  
          established campaign contribution limits."

          A statement of intention to be a candidate for an elective  








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          office serves as a notice of an individual's intent to raise  
          campaign contributions toward seeking a particular office.   
          Nomination papers, including declarations of candidacy, are  
          filed with elections officials in order for the individual's  
          name to appear on the ballot as an actual candidate for the  
          office.

          The author contends that permitting individuals to raise  
          campaign contributions for multiple elective state offices at  
          the same time could allow that individual to circumvent the  
          applicable contribution limits in place for the individual  
          offices.  Notwithstanding the author's concern about the  
          potential for candidates to circumvent the contribution limits,  
          the PRA and regulations adopted by the FPPC already contain  
          provisions to protect against such circumvention.  When a person  
          files a statement of intention to be a candidate, the PRA  
          requires that statement to be filed under penalty of perjury.   
          As a result, any person who filed a statement of intention for  
          an office that the person had no intention of seeking could be  
          charged with perjury.  Once a candidate files a statement of  
          intention, and raises money into a committee associated with  
          that statement of intention, expenditures from that committee  
          must be related to the campaign for the office that the  
          candidate stated an intention to seek.  Transfers of funds  
          between two committees for the same candidate are subject to  
          rules that require those funds to be attributed to individual  
          contributors at the time the funds are transferred, thereby  
          protecting against the circumvention of contribution limits.  As  
          a result, the extent to which campaign contribution limits can  
          be circumvented through the use of multiple candidate committees  
          under existing law is unclear.

          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.


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










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