BILL NUMBER: SB 1349 CHAPTERED
BILL TEXT
CHAPTER 845
FILED WITH SECRETARY OF STATE SEPTEMBER 29, 2016
APPROVED BY GOVERNOR SEPTEMBER 29, 2016
PASSED THE SENATE AUGUST 30, 2016
PASSED THE ASSEMBLY AUGUST 29, 2016
AMENDED IN ASSEMBLY AUGUST 15, 2016
AMENDED IN ASSEMBLY JUNE 21, 2016
AMENDED IN SENATE APRIL 18, 2016
AMENDED IN SENATE MARCH 28, 2016
INTRODUCED BY Senator Hertzberg
(Principal coauthor: Assembly Member Mullin)
(Coauthors: Senators Allen, Bates, and Wieckowski)
(Coauthors: Assembly Members Brough, Dababneh, Dodd, Eggman,
Gallagher, Cristina Garcia, Gonzalez, Lackey, and Olsen)
FEBRUARY 19, 2016
An act to amend Sections 84601 and 84602 of the Government Code,
relating to the Political Reform Act of 1974.
LEGISLATIVE COUNSEL'S DIGEST
SB 1349, Hertzberg. Political Reform Act of 1974: Secretary of
State: online filing and disclosure system.
The Political Reform Act of 1974 generally requires elected
officials, candidates for elective office, and committees formed
primarily to support or oppose a candidate for public office or a
ballot measure, along with other entities, to file periodic campaign
statements. The act requires that these campaign statements contain
prescribed information related to campaign contributions and
expenditures of the filing entities. Existing law, the Online
Disclosure Act, requires the Secretary of State, in consultation with
the Fair Political Practices Commission, to develop online and
electronic filing processes for use by these persons and entities.
This bill, in addition, would require the Secretary of State, in
consultation with the Commission, to develop and certify for public
use an online filing and disclosure system for campaign statements
and reports that provides public disclosure of campaign finance and
lobbying information in a user-friendly, easily understandable
format.
The Political Reform Act of 1974, an initiative measure, provides
that the Legislature may amend the act to further the act's purposes
upon a 2/3 vote of each house and compliance with specified
procedural requirements.
This bill would declare that it furthers the purposes of the act.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 84601 of the Government Code is amended to
read:
84601. The Legislature finds and declares as follows:
(a) The people of California enacted one of the nation's most
comprehensive campaign and lobbying financial disclosure laws when
they voted for Proposition 9, the Political Reform Act of 1974, an
initiative statute.
(b) Public access to campaign and lobbying disclosure information
is a vital and integral component of a fully informed electorate.
(c) Advances in technology have made it necessary for the State of
California to develop a new, data-driven online filing and
disclosure system that provides public disclosure of campaign finance
and lobbying information in a user-friendly, easily understandable
format.
(d) Members of the public, including voters, journalists, and
researchers, should be able to access campaign finance and lobbying
information in a robust and flexible manner, including through
searches and visual displays such as graphs and maps.
SEC. 2. Section 84602 of the Government Code is amended to read:
84602. (a) To implement the Legislature's intent, the Secretary
of State, in consultation with the Commission, notwithstanding any
other provision of this code, shall do all of the following:
(1) Develop online and electronic filing processes for use by
persons and entities specified in Section 84605 that are required to
file statements and reports with the Secretary of State's office
pursuant to Chapter 4 (commencing with Section 84100) and Chapter 6
(commencing with Section 86100). Those processes shall each enable a
user to comply with all of the disclosure requirements of this title
and shall include, at a minimum, both of the following:
(A) A means or method whereby filers subject to this chapter may
submit required filings free of charge. Any means or method developed
pursuant to this subparagraph shall not provide any additional or
enhanced functions or services that exceed the minimum requirements
necessary to fulfill the disclosure provisions of this title. At
least one means or method shall be made available no later than
December 31, 2002.
(B) The definition of a nonproprietary standardized record format
or formats using industry standards for the transmission of the data
that is required of those persons and entities specified in Section
84605 and that conforms with the disclosure requirements of this
title. The Secretary of State shall hold public hearings before
development of the record format or formats as a means to ensure that
affected entities have an opportunity to provide input into the
development process. The format or formats shall be made public no
later than July 1, 1999, to ensure sufficient time to comply with
this chapter.
(2) Accept test files from software vendors and others wishing to
file reports electronically, for the purpose of determining whether
the file format is in compliance with the standardized record format
developed pursuant to paragraph (1) and is compatible with the
Secretary of State's system for receiving the data. A list of the
software and service providers who have submitted acceptable test
files shall be published by the Secretary of State and made available
to the public. Acceptably formatted files shall be submitted by a
filer in order to meet the requirements of this chapter.
(3) Develop a system that provides for the online or electronic
transfer of the data specified in this section using
telecommunications technology that ensures the integrity of the data
transmitted and that creates safeguards against efforts to tamper
with or subvert the data.
(4) Make all the data filed available on the Internet in an easily
understood format that provides the greatest public access. The data
shall be made available free of charge and as soon as possible after
receipt. All late contribution and late independent expenditure
reports, as defined by Sections 84203 and 84204, respectively, shall
be made available on the Internet within 24 hours of receipt. The
data made available on the Internet shall not contain the street name
and building number of the persons or entity representatives listed
on the electronically filed forms or any bank account number required
to be disclosed pursuant to this title.
(5) Develop a procedure for filers to comply with the requirement
that they sign under penalty of perjury pursuant to Section 81004.
(6) Maintain all filed data online for 10 years after the date it
is filed, and then archive the information in a secure format.
(7) Provide assistance to those seeking public access to the
information.
(8) Implement sufficient technology to seek to prevent
unauthorized alteration or manipulation of the data.
(9) Provide the Commission with necessary information to enable it
to assist agencies, public officials, and others with the compliance
with, and administration of, this title.
(10) Report to the Legislature on the implementation and
development of the online and electronic filing and disclosure
requirements of this chapter. The report shall include an examination
of system security, private security issues, software availability,
compliance costs to filers, use of the filing system and software
provided by the Secretary of State, and other issues relating to this
chapter, and shall recommend appropriate changes if necessary. In
preparing the report, the Commission may present to the Secretary of
State and the Legislature its comments regarding this chapter as it
relates to the duties of the Commission and suggest appropriate
changes if necessary. There shall be one report due before the system
is operational as set forth in Section 84603, one report due no
later than June 1, 2002, and one report due no later than January 31,
2003.
(11) Review the current filing and disclosure requirements of this
chapter and report to the Legislature, no later than June 1, 2005,
recommendations on revising these requirements so as to promote
greater reliance on electronic and online submissions.
(b) (1) To implement the Legislature's intent, as described in
Section 84601, the Secretary of State, in consultation with the
Commission, shall develop an online filing and disclosure system for
use by persons and entities specified in Section 84605 that are
required to file statements and reports with the Secretary of State's
office pursuant to Chapter 4 (commencing with Section 84100) and
Chapter 6 (commencing with Section 86100). The system shall enable a
user to comply with all of the disclosure requirements of this title
and shall include, at minimum, all of the following:
(A) A data-driven means or method that allows filers subject to
this chapter to submit required filings free of charge in a manner
that facilitates public searches of the data and does all of the
following:
(i) Enables a filer to comply with all of the disclosure
requirements of this title, including by entering or uploading
requisite data or by indicating that the filer had no reportable
activity during a particular reporting period.
(ii) Retains previously submitted data so that a filer can access
that data to amend disclosures or prepare future disclosures.
(iii) Ensures the security of data entered and stored in the
system.
(iv) To the extent feasible, is compatible with potential future
capability to accept statements from filers specified in subdivisions
(b) to (e), inclusive, of Section 84215.
(B) The definition of a nonproprietary standardized record format
or formats using industry standards for the transmission of the data
that is required of those persons and entities specified in Section
84605 and that conforms with the disclosure requirements of this
title.
(2) The Secretary of State shall do all of the following with
respect to the online filing and disclosure system developed pursuant
to this subdivision:
(A) Accept test files from software vendors and others wishing to
file reports electronically for the purpose of determining whether
the file format is in compliance with the standardized record format
developed pursuant to this subdivision and is compatible with the
Secretary of State's system for receiving the data. The Secretary of
State shall publish and make available to the public a list of the
software and service providers who have submitted acceptable test
files. A filer shall submit acceptably formatted files in order to
meet the requirements of this chapter.
(B) Make the data filed available on the Internet as follows:
(i) In a user-friendly, easily understandable format that provides
the greatest public access, including online searches and
machine-readable downloads of all data contained in the system,
except as specified in clause (iii).
(ii) Free of charge and as soon as possible after receipt, or, in
the case of late contribution, late in-kind contribution, and late
independent expenditure reports, as defined by Sections 84203,
84203.3, and 84204, respectively, within 24 hours of receipt.
(iii) Not containing the street name or building number of the
persons or entity representatives listed on the electronically filed
forms or any bank account number required to be disclosed pursuant to
this title.
(iv) In a manner that allows the public to track and aggregate
contributions from the same contributor across filers using a
permanent unique identifier assigned by the Secretary of State for
this purpose. The Secretary of State shall assign this identifier to,
at minimum, each contributor who makes contributions totaling ten
thousand dollars ($10,000) or more in a calendar year to, or at the
behest of, candidates or committees that file electronically with the
Secretary of State pursuant to subdivision (a) of Section 84215 or
who files with the Secretary of State as a major donor committee
under subdivision (c) of Section 82013.
(C) Develop a procedure for filers to comply electronically with
the requirement to sign under penalty of perjury pursuant to Section
81004. The electronic signature procedure shall allow the filer to
file with the Secretary of State and shall not require an original
signature to be filed.
(D) Maintain all filed data online for at least 20 years after the
date it is filed, and then archive the information in a secure
format.
(E) Provide assistance to those seeking public access to the
information.
(F) Implement sufficient technology to seek to prevent
unauthorized alteration or manipulation of the data.
(G) Provide the Commission with necessary information to enable it
to assist agencies, public officials, and others in complying with
and administering this title.
(3) The Secretary of State shall do all of the following with
respect to developing the online filing and disclosure system and
record format pursuant to this subdivision:
(A) Consult with the Assembly Committee on Elections and
Redistricting, the Senate Committee on Elections and Constitutional
Amendments, the Commission, users, filers, and other stakeholders, as
appropriate, about functions of the online filing and disclosure
system.
(B) In consultation with the Commission, and no later than July
31, 2017, hold at least one public hearing to receive input about
developing the online filing and disclosure system and record format.
(C) No later than December 31, 2017, submit a report to the
Assembly Committee on Elections and Redistricting and the Senate
Committee on Elections and Constitutional Amendments that includes a
plan for the online filing and disclosure system, describes how
members of the public will be able to query and retrieve data from
the system, and includes a plan for integrating statements as
specified in clause (iv) of subparagraph (A) of paragraph (1).
(4) The Secretary of State shall make the online filing and
disclosure system developed pursuant to this subdivision available
for use no later than February 1, 2019. The Secretary of State may
extend this date to a date no later than December 31, 2019, after
consulting with the Assembly Committee on Elections and Redistricting
and the Senate Committee on Elections and Constitutional Amendments
and providing to those committees a report that explains the need for
the extension and includes a plan for completion.
(5) The Secretary of State may accept any funds, services,
equipment, or grants to further this subdivision, provided that the
Secretary of State shall notify the Assembly Committee on Elections
and Redistricting and the Senate Committee on Elections and
Constitutional Amendments upon accepting any amount valued at one
hundred thousand dollars ($100,000) or more.
(6) Because the provisions of this chapter need to be implemented
as expeditiously as possible, the information technology procurement
requirements described in Chapter 5.6 (commencing with Section 11545)
of Part 1 of Division 3 of Title 2 of this code, and in Section
12100 of the Public Contract Code, do not apply to development of the
online filing and disclosure system pursuant to this subdivision.
The Secretary of State shall consult with the Department of
Technology, as appropriate, in developing the online filing and
disclosure system, in order to maximize project success, minimize
lifecycle costs, and ensure the security of the system and its data.
(7) (A) Before making the system developed pursuant to this
subdivision available for public use, the Secretary of State, in
consultation with the Commission, shall test the system to ensure its
functionality and then certify that the system meets all the
requirements of this subdivision. The Secretary of State may consult
with the Department of Technology as needed to fulfill his or her
duties under this paragraph.
(B) After the system developed pursuant to this subdivision is
certified, the system described in subdivision (a) shall no longer
accept reports and filings, unless otherwise directed by the
Secretary of State and the Commission. The system described in
subdivision (a) shall continue to allow public access to past
disclosures unless the Secretary of State migrates that data into the
system described in this subdivision.
(c) On or before December 31, 2017, and on or before every April
15, July 15, October 15, and January 15 thereafter, the Secretary of
State shall submit to the chairs of the Joint Legislative Budget
Committee and the fiscal committees of the Legislature a quarterly
report on the progress of the Cal-Access Project. Specifically, the
Secretary of State shall certify whether he or she (1) anticipates
making or has made any changes to the project's scope, schedule, or
budget and (2) considers any problems to be a risk to the project's
completion according to the approved project schedule and budget.
This reporting requirement shall end upon the completion or
termination of the Cal-Access Project.
SEC. 3. The Legislature finds and declares that this bill furthers
the purposes of the Political Reform Act of 1974 within the meaning
of subdivision (a) of Section 81012 of the Government Code.