BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 1391|
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THIRD READING
Bill No: AB 1391
Author: Leno (D)
Amended: 8/18/05 in Senate
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: use of campaign fund
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.
Senate Floor Amendments of 8/18/05 increase the number of
thresholds for reporting specified types of public
officials' income and provide for a prohibition on the use
of campaign funds for the lease of real property wherein
legal title to the property resides in an entity for which
an interest of at least ten percent is held by a candidate
CONTINUED
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or other individual who approves the expenditure of the
relevant campaign funds.
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 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,
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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
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
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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
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.
Threshold for reporting . Existing provisions of the
Political Reform Act of 1974 require public officials and
designated employees of public agencies to file annually a
written statement of the economic interests they possess
during specified periods. The act requires that when the
filer's income is required to be reported, the statement
include whether the aggregate value of income from each
source was at least $500 but did not exceed $1,000, whether
it was in excess of $1,000 but not greater than $10,000,
whether it was greater than $10,000 but not greater than
$100,000, or whether it was greater than $100,000.
The bill requires these filers to specify income in
increments of $10,000 to $100,000, more than $100,000 to
$250,000, more than $250,000 to $500,000, more than
$500,000 to $1,000,000 more than $1,000,000 to $2,000,000
or more than $2,000,000.
Use of campaign funds . Existing provisions of the act
prohibit the use of campaign funds to pay or reimburse for
the lease or purchase of real property, or the purchase,
lease, or refurbishment of any appliance or equipment
leased or owned by a candidate, officer, or other specified
person.
This bill expands that prohibition to include property
where the legal title resides in whole or in part in any
person in which an interest of ten percent or more is held
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by a candidate, elected officer or other specified person.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
SUPPORT : (Verified 8/22/05)
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 8/22/05 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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