BILL ANALYSIS Ó
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THIRD READING
Bill No: SB 1442
Author: Lara (D), Corbett (D), De León (D), Hill (D), Monning
(D), Roth (D), Steinberg (D), and Torres (D)
Amended: 8/18/14
Vote: 27
SENATE ELECTIONS & CONST. AMEND. COMM. : 5-0, 4/22/14
AYES: Torres, Anderson, Hancock, Jackson, Padilla
SENATE APPROPRIATIONS COMMITTEE : 7-0, 5/23/14
AYES: De León, Walters, Gaines, Hill, Lara, Padilla, Steinberg
SENATE FLOOR : 34-0, 5/27/14
AYES: Anderson, Beall, Block, Cannella, Corbett, Correa, De
León, DeSaulnier, Evans, Fuller, Gaines, Galgiani, Hancock,
Hernandez, Hill, Hueso, Huff, Jackson, Knight, Lara, Leno,
Mitchell, Monning, Morrell, Nielsen, Padilla, Pavley, Roth,
Steinberg, Torres, Vidak, Walters, Wolk, Wyland
NO VOTE RECORDED: Berryhill, Calderon, Lieu, Liu, Wright, Yee
ASSEMBLY FLOOR : Not available
SUBJECT : Political Reform Act of 1974: campaign statements
SOURCE : Author
DIGEST : This bill requires the development of a new
Internet-based campaign filing and public display system.
Requires state candidates and campaign committees to file
periodic campaign reports every calendar quarter, instead of
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semi-annually, beginning January 1 of the year following the
year in which the new campaign filing and display system becomes
operational.
Assembly Amendments revise pre-election filing statement
requirements; revise the Secretary of State's (SOS')
requirements when developing a statewide Internet-based system
for electronic filing; make all other changes to existing law
effected by this bill operative on January 1 of the year
following the year in which this system becomes operative, as
certified by the SOS; and make other conforming and technical
changes.
ANALYSIS :
Existing law:
1.Requires, pursuant to the Political Reform Act (PRA),
candidates, political committees, and slate mail organizations
to file specified periodic and activity-based campaign finance
reports, including semiannual statements, pre-election
statements, supplemental pre-election statements, and late
contribution/expenditure reports that include specified
campaign finance information.
2.Defines "late contributions" and "late independent
expenditures" to include certain contributions and independent
expenditures that are made within 90 days before the date of
the election.
This bill:
1.Requires the SOS, in consultation with the Fair Political
Practices Commission (FPPC), to develop a statewide
Internet-based system for the electronic filing and public
display of all records filed with the SOS pursuant to the PRA.
Requires the system to provide search capabilities that are
data-driven and user-friendly for members of the public and
all filings in a raw, machine-readable data format that may be
downloaded by members of the public.
2.Changes campaign filing requirements and deadlines, beginning
January 1 of the year following the year in which the new
campaign filing and display system becomes operational, as
certified by the SOS, in accordance with the following:
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A. Requires elected state officers, candidates for elective
state office, committees that are primarily formed to
support or oppose a candidate for elective state office or
one or more statewide ballot measures, and state general
purpose committees to file quarterly campaign statements,
instead of semi-annual campaign statements.
B. Reduces the number of pre-election reports, from two to
one that are required to be filed by committees that file
quarterly reports under this bill.
C. Eliminates requirements for committees to file certain
special reports, including supplemental pre-election
statements, supplemental independent expenditure reports,
and odd-numbered year reports.
D. Requires contributions and independent expenditures of
$1,000 or more that are made on election day to be reported
within 24 hours of the time that the contribution or
expenditure is made. (Existing law requires such reporting
for contributions and expenditures made in the 90 days
before election day.)
Background
Filing schedules . Under existing law, candidates and committees
generally are required to file regular campaign disclosure
reports semi-annually. Candidates generally are required to
file two pre-election campaign statements for any election where
they will appear on the ballot, and certain non-candidate
committees similarly must file pre-election reports. When
candidates and committees are required to file these
pre-election reports, they generally must also file late
contribution reports, and late independent expenditure reports,
disclosing within 24 hours any contributions made or received
and independent expenditures made of $1,000 or more in the last
90 days before the election (election cycle). Candidates and
committees can also be required to file additional special
campaign reports at other times of year, based on the particular
campaign finance activity of the candidate or committee.
Periodic and Activity-Based reports . Under the PRA, there are
two general types of reporting requirements. The first type of
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report is referred to as a periodic report. Periodic reports
must be filed according to a specified time schedule for all
similarly-situated candidates and committees, regardless of the
amount of campaign activity during the period of time covered by
the report. These reports generally include all campaign
activity (contributions, loans, expenditures, etc.) that
occurred over a specified period of time. Semi-annual reports
and pre-election reports are two examples of periodic reports
that are required under the PRA.
The second type of report that the PRA requires is an
activity-based report. An activity-based report is triggered
when a candidate or committee has campaign activity that meets
or exceeds a specific dollar threshold. Election cycle 24-hour
reports for contributions of $1,000 or more and non-election
cycle 10-business day reports of contributions of $5,000 or more
are examples of activity-based reports.
Major donor committees . The PRA defines "committee" to include
recipient committees, independent expenditure committees, and
"any person or combination of persons who directly or indirectly
makes contributions totaling $10,000 or more in a calendar year
to or at the behest of candidates or committees." These last
groups of committees are commonly referred to as "major donor"
committees since they use their own funds to make political
contributions rather than raising money from other sources.
Related Legislation
SB 1102 (Padilla, 2013) lowers the reporting threshold for
24-hour election cycle reports from $1,000 to $100; lowers the
reporting threshold for non-election cycle reports from $5,000
to $100; and reduces the deadline for the non-election cycle
reports from 10 business days of receipt of the contribution to
five days.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
According to the Assembly Appropriations Committee:
Developing a new campaign filing system is preliminarily
estimated to cost in the range of $12 million to $15 million
(General Fund), with ongoing costs of around $1.7 million to
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operate and maintain the system.
The net increase in filed reports will increase the SOS's
workload for processing these documents, requiring three to
four additional positions at an annual cost of $300,000 to
$400,000.
The FPPC will incur General Fund costs of $150,000 for new
regulations, revision to forms and manuals, and increased
requests for advice.
SUPPORT : (Verified 8/28/14)
California Forward
Common Cause
RM:e 8/29/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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