BILL NUMBER: SB 49	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY   JULY 17, 1997
	AMENDED IN ASSEMBLY   JULY 8, 1997
	AMENDED IN SENATE   MAY 20, 1997
	AMENDED IN SENATE   APRIL 22, 1997
	AMENDED IN SENATE   APRIL 14, 1997

INTRODUCED BY  Senator Karnette
   (Principal coauthors:  Senators Lockyer, McPherson, and Polanco)
    (Principal coauthor:  Assembly Member Cunneen) 
    (Principal Coauthors:  Assembly Members Cunneen and Frusetta)

   (Coauthors:  Senators Costa, Hayden, O'Connell, Sher, Solis, and
Vasconcellos)
   (Coauthors:  Assembly Members Alquist, Bowen, Davis, Keeley, Knox,
Kuehl, Lempert, Mazzoni, McClintock,  Shelley,  and
Strom-Martin)

                        DECEMBER 2, 1996

   An act to add Chapter 4.6 (commencing with Section 84600) to Title
9 of the Government Code, relating to the Political Reform Act of
1974, making an appropriation therefor, and declaring the urgency
thereof, to take effect immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 49, as amended, Karnette.  Political Reform Act of 1974:
online disclosure.
   Existing provisions of the Political Reform Act of 1974 require
specified candidates for public office and committees supporting or
opposing candidates or ballot measures to periodically file reports
with the Secretary of State and certain local officials setting forth
information concerning contributions they received and expenditures
they made during the specified reporting period.  Existing provisions
of the act also require lobbyists, lobbying firms, and lobbyist
employers to periodically file specified reports and statements with
the Secretary of State.
   This bill would require the Secretary of State to develop a
process whereby reports and statements that are required under the
act to be filed with the Secretary of State could be filed
electronically and viewed by the public at no cost and an online
disclosure system by way of the largest nonproprietary, cooperative
public computer network.
   This bill would establish timeframes within which the Secretary of
State would be required to implement this process and within which
controlled committees of elected state officers that receive
contributions, and any other committees  ,   that
receive contributions or make expenditures of $100,000 or more, and
 lobbyists, lobbying firms, and lobbyist employers that file
these reports and statements, must begin to file them
electronically.  The bill would require that the Secretary of State
implement its provisions statewide in connection with the state
primary election in the year 2000.
   This bill would permit committees that are not required to file
electronically to do so.
   This bill would require the Secretary of State to define a
standardized record format or formats for transmission of data
required to be filed by this bill, certify computer software that
complies with these formats, and publish a list of the certified
vendors to be made available to the public.
   This bill would require that persons who are subject to these
electronic filing requirements must continue to file paper copies of
these reports and statements as currently required under the act
until the Secretary of State is satisfied with the performance of the
electronic filing system.
   This bill would not require local officials who also receive
filings of these reports and statements to maintain a similar
electronic filing system, but would impose a state-mandated local
program by requiring county elections officials to receive this
information from the Secretary of State.
   The bill would provide, pursuant to a specified provision of
existing law, that no employee or official of a state or local
government agency shall utilize, for political or campaign purposes,
public facilities or resources to retrieve or maintain any of the
data produced pursuant to the bill.
   This bill would appropriate the sum of $1,100,000 to the Secretary
of State for the purposes of developing the electronic reporting
system and reimbursing local agencies for any costs they incur in the
development of the system.
   Existing law makes a violation of the act subject to
administrative, civil, and criminal penalties.
   This bill would impose a state-mandated local program by imposing
these penalties on certain persons who violate the provisions of the
bill.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that, except as provided in this act, no
reimbursement is required by this act for specified reasons.
   The Political Reform Act of 1974, an initiative measure, provides
that the Legislature may amend the act to further the act's purposes
with a 2/3 vote of each house and compliance with specified
procedural requirements.
   This bill, which would declare that it furthers the purposes of
the act, would therefore require a 2/3 vote.
  The bill would declare that it is to take effect immediately as an
urgency statute.
   Vote:  2/3.  Appropriation:  yes.  Fiscal committee:  yes.
State-mandated local program:  yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Chapter 4.6 (commencing with Section 84600) is added to
Title 9 of the Government Code, to read:

      CHAPTER 4.6.  ONLINE DISCLOSURE ACT OF 1997

   84600.  This chapter may be known and may be cited as the Online
Disclosure Act of 1997.
   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 viable for disclosure
statements and reports required by the Political Reform Act to be
filed online and placed on the Internet, thereby maximizing
availability to the public.
   84602.  To implement the Legislature's intent, the Secretary of
State, in consultation with the Fair Political Practices Commission,
notwithstanding any other provision of this title or any other
provision of the Government Code, shall do all of the following:
   (a) Develop an online filing process for use by persons and
entities specified in Sections 84604 and 84605 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).  As part of that process, the
Secretary of State shall define a nonproprietary standardized record
format or formats using industry standards for the transmission of
the data required of those persons and entities specified in
subdivision (a), and which conforms with the disclosure requirements
of this title.  The Secretary of State shall hold public hearings
prior to development of the record format 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 September 1, 1999, to ensure sufficient time to comply
with the requirements of this chapter.
   (b) Certify computer software for compliance with the standardized
record format developed pursuant to subdivision (a) and is
compatible with the Secretary of State's system for receiving the
data.  All software shall be certified in order for a filer to meet
the requirements of this chapter.  A list of the certified software
shall be published by the Secretary of State and made available to
the public.
   (c) Develop a system that provides for the online transfer of the
data specified in this section utilizing telecommunications
technology, which assures the integrity of the data transmitted, and
creates safeguards against efforts to tamper with or subvert the
data.
   (d) Make all the data filed online available on the largest,
nonproprietary, nonprofit, cooperative public network of computer
networks 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 online within 24 hours
of receipt.  The data made available shall not contain the street
addresses of the persons or entity representatives listed on the
electronically filed forms.
   (e) Develop a procedure for filers to comply with the requirement
that they sign under penalty of perjury pursuant to Section 81004.
   (f) Maintain all filed data online for 10 years after the date it
is filed, and then archive the information in a secure format.
   (g) Provide assistance to those seeking public access to the
information.
   (h) Consult with the Department of Information Technology and
implement sufficient technology to seek to prevent unauthorized
alteration or manipulation of the data.  The online disclosure system
shall not become operative until the Department of Information
Technology approves the system.
   (i) Report to the Legislature on the implementation and
development of the online 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, and other issues, relating to this chapter, recommending
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, and one due no later than June 1, 2001.
   84603.  The Secretary of State, once all state-mandated
development, procurement, and oversight requirements have been met,
shall make public their availability to accept reports online.  Any
filer may then commence voluntarily filing online any required report
or statement that is otherwise required to be filed with the
Secretary of State pursuant to Chapter 4 (commencing with Section
84100) or Chapter 6 (commencing with 86100) of this title.
   84604.  (a) The Secretary of State shall implement an online
disclosure program in connection with the 2000 state primary election
and the lobbying activities specified in paragraph (4).  Entities
specified in paragraphs (1), (2), and (3) shall commence online
disclosure with the first preelection statement for the period ending
March 17, 2000, and shall continue to disclose online all required
reports and statements up until and including the semiannual
statement for the period ending June 30, 2000.  Entities specified in
paragraph (4) shall commence online disclosure with the quarterly
report for the period ending March 31, 2000, and shall continue to
disclose online all required reports and statements up to and
including the quarterly report for the period ending June 30, 2000.
The entities subject to this section are the following:
   (1) Any candidate, committee, or other persons who are required,
pursuant to Chapter 4 (commencing with Section 84100), to file
statements, reports, or other documents in connection with a state
elective office or state measure appearing on the June 2000 ballot,
provided that the total cumulative reportable amount of contributions
received, expenditures made, loans made or received is one hundred
thousand dollars ($100,000) or more.
   (2) Any general purpose committees, as defined in Section 82027.5,
 including the general purpose committees of political parties,
 and small contributor committees, as defined in Section 85203,
that cumulatively receive contributions or make expenditures totaling
one hundred thousand dollars ($100,000) or more to support or oppose
candidates for any elective state office or state measure appearing
on the June 2000 ballot.
   (3) Any slate mailer organization with cumulative reportable
payments received or made for the purposes of producing slate mailers
of one hundred thousand dollars ($100,000) or more in connection
with the June 2000 election.
   (4) Any lobbyist, lobbying firm, lobbyist employer or other
persons required, pursuant to Chapter 6 (commencing with Section
86100) to file statements, reports, or other documents provided that
the total amount of any category of reportable payments, expenses,
contributions, gifts, or other items is one hundred thousand dollars
($100,000) or more in a calendar quarter.
   (b) Filers specified in subdivision (a) shall also continue to
file required disclosure forms in paper format.  The paper copy shall
continue to be the official version for audit and other legal
purposes.  Committees and other persons that are not required to file
online by this section may voluntarily file online.
   (c) The Secretary of State shall also disclose online any late
contribution or late independent expenditure report, as defined by
Sections 84203 and 84204 respectively, not covered by subdivision
(a).
   (d) It shall be presumed that online filers file under penalty of
perjury.
   84605.  Beginning on July 1, 2000, and for all applicable
reporting periods thereafter, the following persons shall file online
with the Secretary of State:
   (a) Any candidate, committee, or other persons who are required,
pursuant to Chapter 4 (commencing with Section 84100), to file
statements, reports, or other documents in connection with a state
elective office or state measure, provided that the total cumulative
reportable amount of contributions received, expenditures made, loans
made or received is fifty thousand dollars ($50,000) or more in an
election cycle.  In determining the cumulative reportable amount, all
controlled committees, as defined by Section 82016, and office
holder accounts, as defined by Section 85313, shall be included.
   (b) Any general purpose committees, as defined in Section 82027.5,
 including the general purpose committees of political parties,
 and small contributor committees, as defined in Section 85203,
that cumulatively receive contributions or make expenditures totaling
fifty thousand dollars ($50,000) or more in an election cycle to
support or oppose candidates for any elective state office or state
measure.
   (c) Any slate mailer organization with cumulative reportable
payments received or made for the purposes of producing slate mailers
of fifty thousand dollars ($50,000) or more in an election cycle.
   (d) Any lobbyist, lobbying firm, lobbyist employer or other
persons required, pursuant to Chapter 6 (commencing with Section
86100), to file statements, reports, or other documents provided that
the total amount of any category of reportable payments, expenses,
contributions, gifts, or other items is five thousand dollars
($5,000) or more in a calendar quarter.
   (e) The Secretary of State shall also disclose online any late
contribution or late independent expenditure report, as defined by
Sections 84203 and 84204 respectively, not covered by subdivision
(a), (b), or (c).
   (f) Committees and other persons that are not required to file
online by this section may voluntarily file online.
   (g) Once a person or entity is required to file online, subject to
subdivision (a), (b), (c), or (d), they shall be required to file
all subsequent reports online.
   (h) It shall be presumed that online filers file under penalty of
perjury.
   (i) Persons filing electronically shall also continue to file
required disclosure statements and reports in paper format.  The
paper copy shall continue to be the official filing for audit and
other legal purposes until such time that the Secretary of State,
pursuant to Section 84606, determines the system is operating
securely and effectively.
   (j) The Secretary of State shall maintain at all times a secured,
official version of all original electronically filed statements and
reports required by this chapter.  Upon determination by the
Secretary of State, pursuant to Section 84606, that the system is
operating securely and effectively, this electronic version shall be
the official version for audit and other legal purposes.
   84606.  The Secretary of State shall determine and publicly
disclose when the online disclosure system is operating effectively.
In making this determination, the Secretary of State shall consult
with the commission, the Department of Information Technology, and
any other appropriate public or private entity.  Upon this
determination, filers required by this chapter to file online will no
longer be required to file a paper format or with local filing
officers.  Furthermore, the date that a filer transmits an online
report shall be the date the filed report is received by the
Secretary of State.
   84607.  Pursuant to Section 8314, no employee or official of a
state or local government agency shall utilize, for political or
campaign purposes, public facilities or resources to retrieve or
maintain any of the data produced by the requirements of this
chapter.
   84609.  All candidates and ballot measure committees who are
required, pursuant to Chapter 4 (commencing with Section 84100), to
file statements, reports, or other documents in connection with a
statewide elective office or state measure appearing on the November
1998 ballot shall provide at the time of filing, in addition to a
paper submission, a copy of the required report on computer disk.
The Secretary of State shall make copies available to the public,
upon payment of fees covering direct costs of duplication, or a
statutory fee, if applicable.  The Secretary of State shall also
disclose online, any late contribution or late independent
expenditure report, as defined by Sections 84203 and 84204
respectively, filed in connection with any elective state office or
ballot measure appearing on the November 1998 ballot.
   84610.  There is hereby appropriated from the General Fund of the
state to the Secretary of State the sum of one million one hundred
thousand dollars ($1,100,000) for the purposes of developing the
online disclosure system provided by this chapter and reimbursing
local agencies for any costs they incur in the development of this
system.
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution for certain
costs that may be incurred by a local agency or school district
because in that regard this act creates a new crime or infraction,
eliminates a crime or infraction, or changes the penalty for a crime
or infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIIIB of the California Constitution.
   Except for the costs to be reimbursed pursuant to the
appropriation set forth in Section 1, no reimbursement is required by
this act pursuant to Section 6 of Article XIIIB of the California
Constitution because this act provides for offsetting savings to
local agencies or school districts that result in no net costs to the
local agencies or school districts, within the meaning of Section
17556 of the Government Code.
   Notwithstanding Section 17580 of the Government Code, unless
otherwise specified, the provisions of this act shall become
operative on the same date that the act takes effect pursuant to the
California Constitution.
  SEC. 3.  The Legislature finds and declares that the provisions of
this act further the purpose of the Political Reform Act of 1974
within the meaning of subdivision (a) of Section 81012 of the
Government Code.
  SEC. 4.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect.  The facts constituting the necessity are:
   In order for the Secretary of State to have sufficient time to
provide for an online disclosure and electronic filing system, it is
necessary that this act take effect immediately.