BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                    THIRD READING


          Bill No:  SB 1104
          Author:   Padilla (D)
          Amended:  5/15/14
          Vote:     27

           
           SENATE ELECTIONS & CONST. AMEND. COMM.  :  4-1, 4/22/14
          AYES:  Torres, Hancock, Jackson, Padilla
          NOES:  Anderson

           SENATE APPROPRIATIONS COMMITTEE  :  5-2, 5/23/14
          AYES:  De León, Hill, Lara, Padilla, Steinberg
          NOES:  Walters, Gaines


           SUBJECT  :    Political Reform Act:  campaign communication  
          disclosure

           SOURCE  :     Author


           DIGEST  :    This bill requires candidates for elective state  
          office, slate mailer organizations, and committees that  
          authorize expenditures for campaign communications, as defined,  
          to file an electronic copy of their campaign communications with  
          the Secretary of State (SOS), as specified.

           ANALYSIS  :    

          Existing law:

          1.Regulates, pursuant to the Political Reform Act (PRA), certain  
            campaign communications, including mass mailings, slate  
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            mailers, print advertisements, and broadcast advertisements,  
            by requiring those items to include specified information and  
            disclosures.  

          2.Defines "advertisement," for purposes of the PRA, as any  
            general or public advertisement which is authorized and paid  
            for by a person or committee for the purpose of supporting or  
            opposing a candidate for elective office or a ballot measure  
            or ballot measures.  "Advertisement" does not include a  
            communication from an organization (other than a political  
            party) to its members, a campaign button smaller than 10  
            inches in diameter, a bumper sticker smaller than 60 square  
            inches, or other advertisement as determined by regulations of  
            the Fair Political Practices Commission (FPPC).

          3.Defines "mass mailing," for purposes of the PRA, as 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.

          This bill:

          1.Requires candidates for elective state office, slate mailer  
            organizations, and committees that authorize expenditures for  
            campaign communications, as defined, to file an electronic  
            copy of their campaign communications with the SOS as follows:

                 A campaign communication that is distributed during the  
               period from 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, inclusive, must be filed no later than 24 hours  
               after the first distribution of the campaign communication.

                 A campaign communication that is distributed at any time  
               must be filed no later than five business days after the  
               first distribution of the campaign communication.

          1.Requires the SOS to maintain an archive of the filed campaign  
            communications and to make the campaign communications  
            available for public inspection on his/her Internet Web site.

          2.Provides, for purposes of its requirements, that the following  
            terms have the following meanings:

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                 "Campaign communication" means 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, State Controller, SOS, Treasurer,  
               Superintendent of Public Instruction, Member of the  
               Legislature, and member of the Board of Equalization.

          1.Specifies that these changes will take effect on July 1, 2017.

           Background
           
          The PRA, as originally enacted via Proposition 9 of 1974 (Prop  
          9), required that "?a copy of every mass mailing in support of  
          or in opposition to a state candidate or state measure shall be  
          sent to the commission (FPPC).  Such copies sent to the  
          commission shall be public records."  

          According to Robert Stern, one of the architects of Prop 9 and  
          former General Counsel to the FPPC, this provision was inserted  
          in the PRA because "it was hoped that it would reduce negative  
          mailings since a copy would be on file with the FPPC."  The FPPC  
          sponsored the repeal of this requirement in the late 1970s  
          because, according to Stern, "very few people were coming to the  
          office to look at the mailings and the boxes were piling high in  
          our storage room."  

           Local jurisdictions and other states  .  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.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

          According to the Senate Appropriations Committee:

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           Estimated one-time costs of approximately $2.7 million, and  
            annual ongoing costs of $580,000 to the SOS (General Fund).

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

          The SOS 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  
          two personnel years (PYs) in the Political Reform Division, and  
          two 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.  
           

           SUPPORT  :   (Verified  5/23/14)

          MapLight
          National Organization for Women 

           ARGUMENTS IN SUPPORT  :    According to the author's office, the  
          SOS serves as a general repository of historical state  
          documents.  The initial PRA required candidates to submit "a  
          copy of every mass mailing in support of or in opposition to a  
          state candidate or state measure?Such copies sent to the  
          commission shall be public records."  Since then, technology has  
          advanced to facilitate electronic communications between the  
          public and those running for office.  Reinstating this  
          requirement will serve to inform and engage voters, thus helping  
          to restore public trust in elected officials.  

          Electronic disclosure of communications is consistent with the  
          increasing acceptance of digital filings for public disclosure  
          reports.  The public is served in that any interested individual  
          will be able to access these documents on the SOS' Web site.   

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          Providing the public with swift and easy access to candidate  
          filings would promote the goal of an informed electorate.  


          RM:k  5/23/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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