BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



           ------------------------------------------------------------ 
          |SENATE RULES COMMITTEE            |                  AB 1391|
          |Office of Senate Floor Analyses   |                         |
          |1020 N Street, Suite 524          |                         |
          |(916) 445-6614         Fax: (916) |                         |
          |327-4478                          |                         |
           ------------------------------------------------------------ 
           
                                         
                                 THIRD READING


          Bill No:  AB 1391
          Author:   Leno (D)
          Amended:  3/29/05 in Assembly
          Vote:     27

           
           SENATE ELEC.TIONS, REAP. & C. A. COMMITTEE  :  6-0, 7/13/05
          AYES: Bowen, Battin, Dunn, Murray, Poochigian, Romero

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           ASSEMBLY FLOOR  :  71-0, 4/21/05 (Passed on Consent) - See  
            last page for vote


           SUBJECT  :    Campaign disclosure:  general purpose  
          committees

           SOURCE  :     Fair Political Practices Commission


           DIGEST  :    This bill requires that any general purpose  
          committee determine, for registration and reporting  
          requirements, whether it is a state, county, or city  
          general purpose committee based on where the committee  
          makes a majority of its contributions and independent  
          expenditures.

           ANALYSIS  :    General purpose committees are defined as  
          those formed to support more than one candidate or ballot  
          measure. According to the author's office, this bill, which  
          is sponsored by the Fair Political Practice Commission  
          (FPPC), closes a loophole in state reporting requirements  
                                                           CONTINUED





                                                               AB 1391
                                                                Page  
          2

          by clarifying the definition of state, county, and city  
          general purpose committees. 

          The author's office states, currently a general purpose  
          committee may register as a state committee if it is  
          involved in a state election.  As a state committee, it  
          must follow state disclosure requirements and deadlines.   
          However, if the state committee decides to heavily  
          participate in a city or county election, it does not need  
          to follow city or county disclosure regulations.  There  
          have been incidents of general purpose committees skirting  
          local regulations by registering as a state committee.  As  
          a result, there is less opportunity for campaign finance  
          transparency on the local level.  By setting out definitive  
          contribution thresholds, this bill, clarifies the  
          distinction between committees and prevents a state  
          committee from funneling a majority of funds to a local  
          committee without local disclosure.

          This bill:

          1.  Provides that a general purpose committee is a state  
            general purpose committee if it meets any of the  
            following requirements: 

            A.  It is a political party committee. 

             B.  It is not a county general purpose committee or a  
               city general purpose committee.

             C.   It makes expenditures to support or oppose  
               candidates or measures voted on in a state election,  
               or in more than one county, including making  
               contributions to state general purpose committees,  
               that total more than 50 percent of the contributions  
               and independent expenditures made by the committee.

           
          2.  Provides that a general purpose committee is a county  
            general purpose committee if it makes expenditures to  
            support or oppose candidates or measures voted on in only  
            one county, or in more than one jurisdiction within one  
            county, including contributions to county general purpose  
            committees in the same county, that total more than 50  







                                                               AB 1391
                                                                Page  
          3

            percent of the contributions and independent expenditures  
            made by the committee. 

          3.  Provides that a general purpose committee is a city  
            general purpose committee if it makes expenditures to  
            support or oppose candidates or measures voted on in only  
            one city, or in one consolidated city and county,  
            including contributions to city general purpose  
            committees in the same city or consolidated city and  
            county, that total more than 50 percent  of the  
            contributions and independent expenditures made by the  
            committee. 

          4.  Provides that, for the purposes of calculating the  
            percentage of contributions and independent expenditures  
            made by a general purpose committee in each jurisdiction,  
            contributions and expenditures made to support or oppose  
            candidates, measures, or committees during the current  
            calendar year and the previous calendar year shall be  
            counted. Provides that a general purpose committee is not  
            required to count contributions or expenditures made  
            during a prior calendar year in which the committee was  
            not required to file campaign statements.

           General Purpose Committees in San Francisco  :  Because  
          existing law defines the term "county," for the purposes of  
          the PRA, to include a city and county, a general purpose  
          committee that is involved primarily in supporting and  
          opposing candidates and measures in San Francisco, a  
          consolidated city and county, is considered a county  
          general purpose committee.  While county general purpose  
          committees are required to file pre-election statements  
          only in connection with state election dates, city general  
          purpose committees are required to file pre-election  
          statements in connection with elections held in that city.   
          According to the FPPC, general purpose committees in San  
          Francisco are not filing pre-election statements in  
          connection with local San Francisco elections because, as  
          county general purpose committees, these committees are  
          only required to file pre-election statements for state  
          elections. 

          This bill specifies that general purpose committees that  
          are involved primarily in supporting and opposing  







                                                               AB 1391
                                                                Page  
          4

          candidates and measures in a consolidated city and county  
          are considered city general purpose committees, thereby  
          requiring such general purpose committees to file  
          pre-election statements in connection with local elections  
          held in the consolidated city and county.

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

           SUPPORT  :   (Verified  8/15/05)

          Fair Political Practices Commission (source)


           ASSEMBLY FLOOR  : 
          AYES:  Aghazarian, Arambula, Baca, Benoit, Berg, Bermudez,  
            Blakeslee, Bogh, Calderon, Canciamilla, Chan, Chavez,  
            Chu, Cogdill, Cohn, Coto, Daucher, De La Torre, DeVore,  
            Dymally, Emmerson, Evans, Frommer, Garcia, Goldberg,  
            Hancock, Harman, Haynes, Jerome Horton, Shirley Horton,  
            Houston, Huff, Jones, Karnette, Keene, Klehs, Koretz, La  
            Malfa, Laird, Leno, Leslie, Levine, Lieber, Liu,  
            Matthews, Maze, McCarthy, Mountjoy, Mullin, Nakanishi,  
            Nava, Negrete McLeod, Niello, Parra, Plescia, Richman,  
            Ridley-Thomas, Sharon Runner, Ruskin, Saldana, Salinas,  
            Spitzer, Strickland, Torrico, Tran, Umberg, Vargas,  
            Villines, Wolk, Wyland, Yee
          NO VOTE RECORDED:  Bass, Gordon, La Suer, Montanez, Nation,  
            Oropeza, Pavley, Walters, Nunez


          DLW:do  8/17/05   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

                                ****  END  ****