BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 1104
                                                                  Page  1

          Date of Hearing:   August 6, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                   SB 1104 (Padilla) - As Amended:  August 4, 2014 

          Policy Committee:                             ElectionsVote:5-0

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill amends the Political Reform Act (PRA) to require,  
          effective July 1, 2017, all "campaign  
          communications"-advertisements, mass mailings, or slate  
          mailers-supporting or opposing a candidate for elective state  
          office or a statewide ballot measure shall be filed  
          electronically with the Secretary of State (SOS) and posted on  
          the SOS website. Specifically, this bill:

          1)Requires a candidate for elective state office, a slate mailer  
            organization, or a committee that authorizes an expenditure  
            for a campaign contribution to file an electronic copy of the  
            campaign communication, along with the date of its first  
            distribution, with the SOS as follows:

             a)   If distributed by postal mail in the last 90 days prior  
               to the election at which the candidate or measure that is  
               the subject of the communication will appear on the ballot,  
               not later than 72 hours after the first distribution of the  
               communication.

             b)   If distributed other than by postal mail in the last 90  
               days prior to the election, not later than 24 hours after  
               the first distribution of the communication.

             c)   If distributed at any other time, not later than five  
               business days after the first distribution of the  
               communication.

          2)Requires the SOS to maintain electronic records of all  
            campaign communications and to make the communications  
            available for public inspection on the SOS's website.








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          3)Requires the submitted records to be maintained for public  
            inspection on the SOS website for the period that an elected  
            candidate serves in office. All other records submitted  
            pursuant to the bill are to be maintained for a time period to  
            be determined by the SOS, but no less than five years.

          4)Requires the SOS to promulgate regulations to implement all of  
            the above.

           FISCAL EFFECT  

          1)Estimated one-time General Fund costs to the SOS of $2.7  
            million to develop and acquire the new public access system  
            for campaign communications through the state's IT procurement  
            process.

          2)Ongoing General Fund costs for the SOS to operate and maintain  
            the new system are estimated at around $500,000 for four  
            positions. The SOS will also incur one-time cost to promulgate  
            implementing regulations.

           COMMENTS  

           1)Purpose  . According to the author, "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 Secretary of State's website.  
            Providing the public with swift and easy access to candidate  
            filings would promote the goal of an informed electorate.

          "It would also serve another important public policy purpose by  
            allowing candidates and others subject to disclosure to  
            monitor online their own submissions to the Secretary of State  
            to confirm compliance with the law."

           2)Background  . The PRA, as originally enacted via Proposition 9  
            of 1974, 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 [FPPC].  Such copies sent to the  
            [FPPC] shall be public records." 

          According to Robert Stern, one of the architects of Proposition  
            9 and former General Counsel to the FPPC, this provision was  








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            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."

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081