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 SB 1104 (Padilla) Page 1 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 SB 1104 (Padilla) Page 2 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.