BILL ANALYSIS                                                                                                                                                                                                    Ó




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de León, Chair


          SB 1104 (Padilla) - Campaign Communication Disclosures
          
          Amended: As Introduced          Policy Vote: E&CA 4-1
          Urgency: No                     Mandate: No
          Hearing Date: May 12, 2014      Consultant: Maureen Ortiz
          
          This bill meets the criteria for referral to the Suspense File.
          
          
          Bill Summary: SB 1104 requires a candidate for elective state  
          office, a slate mailer organization, or a committee that  
          authorizes an expenditure for a campaign communication, to file  
          an electronic copy of the campaign communication with the  
          Secretary of State (SOS).

          Fiscal Impact: 
          
              Estimated one-time costs of approximately $2.7 million, and  
              annual ongoing costs of $580,000 to the Secretary of State  
              (General Fund)

              Annual costs of $90,133 to the FPPC (General Fund)

          The Secretary of State estimates one-time costs totaling $2.7  
          million for the implementation of a computerized public access  
          system as follows:  $200,000 for a feasibility study report;  
          $800,000 for a System Integration Vendor; $900,000 in hardware  
          costs; staffing costs of $300,000, and project oversight  
          expenses totaling $500,000. Ongoing costs totaling $580,000  
          consist of 2 PYs in the Political Reform Division, and 2 PY's in  
          the Information Technology Division.

          The FPPC indicates the need for one Political Reform Consultant  
          to handle requests for advice on the new definitions.

          Additionally, the SOS indicates unknown potential long-term  
          costs for permanently preserving digital records including  
          maintaining systems for public access and migrating digital  
          information to successive server and platform changes over time.  
           

          Background:  The Political Reform Act (PRA) regulates campaign  








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          communications which includes mass mailings, slate mailers,  
          print advertisements, and broadcast advertisements.  The PRA  
          defines "mass mailing" as a mailing that has over two hundred  
          substantially similar pieces of mail.  "Slate mailer" means a  
          mass mailing which supports or opposes a total of four or more  
          candidates or ballot measures.

          Proposed Law:  SB 1104 requires a candidate for elective state  
          office, a slate mailer organization, or a committee that  
          authorizes an expenditure for a campaign communication to file  
          an electronic copy of the campaign communication with the  
          Secretary of State as follows:

           A campaign communication that is distributed during the period  
            of 90 days prior to the election at which the candidate or  
            measure that is the subject of the campaign communication will  
            appear on the ballot to the day of the election, must be filed  
            electronically with the SOS not later than 24 hours after the  
            first distribution of the campaign communication.

           A campaign communication that is distributed at any other time  
            must be filed not later than five business days after the  
            first distribution of the campaign communication.

          SB 1104 defines "campaign communication" as an advertisement  
          that advocates support for or opposition to a candidate for  
          elective state office or a statewide ballot measure; a mass  
          mailing that advocates support for or opposition to a candidate  
          for elective state office or a statewide ballot measure; or a  
          slate mailer.

          "Elective state office" means the office of Governor, Lieutenant  
          Governor, Attorney General, Insurance Commissioner, Controller,  
          Secretary of State, Treasurer, Superintendent of Public  
          Instruction, Member of the Legislature, and member of the State  
          Board of Equalization.  

          SB 1104 requires the SOS to maintain an archive of the filed  
          campaign communications and to make the campaign communications  
          available for public inspection.

          Staff Comments:  The Secretary of State serves as a general  
          repository of historical state documents.  The initial Political  








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          Reform Act in 1974 required candidates to submit a copy of every  
          mass mailing in support of or in opposition to a state candidate  
          or state measure which were to be held as public records.  The  
          requirement was later repealed due to space logistics and lack  
          of public interest in viewing the stored documents.

          Marin County along with the cities of Los Angeles, West  
          Hollywood, Palmdale, San Jose, and Berkeley require disclosure  
          of campaign communications during their municipal elections.   
          Other states that have a similar requirement include New York,  
          New Jersey, Montana, and Oklahoma. 

          It should be noted that the Secretary of State's office is  
          currently in the process of procuring and launching other  
          substantial information technology projects including the  
          statewide voter database known as VoteCal, and the online  
          business filing system California Business Connect, both of  
          which are slated to be completed in 2016.
          
          Author's Amendments:  Staff understands that the author intends  
          to amend SB 1104 while the bill is on Suspense to integrate the  
          campaign disclosure electronic filing program into the Secretary  
          of State's CalAccess database.