BILL NUMBER: AB 2771 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 3, 2006
INTRODUCED BY Assembly Member Leno
FEBRUARY 24, 2006
An act to amend Sections 84602 and 84605 of the Government Code,
relating to the Political Reform Act of 1974.
LEGISLATIVE COUNSEL'S DIGEST
AB 2771, as amended, Leno Political Reform Act of 1974:
electronic filing.
The Political Reform Act of 1974 requires the Secretary of State,
in consultation with the Fair Political Practices Commission, to make
available a means or method no later than December 31, 2002,
allowing filers subject to the online or electronic filing provisions
of the act to submit required filings free of charge. The act
specifies that any means or method developed for free online or
electronic filing shall not provide any additional or enhanced
functions or services that exceed the minimum requirements necessary
to fulfill the disclosure provisions of the act.
The act requires that specified persons or entities periodically
file reports online or electronically with the Secretary of State,
including any general purpose committee that cumulatively has
received contributions or made expenditures totaling $50,000 or more,
and any slate mailer organization with cumulative reportable
payments received or made for purposes of producing slate mailers of
$50,000 or more.
This bill would make findings and declarations of the Legislature
concerning the effect of the failure of the Secretary of State to
provide free online or electronic filing for on those entities
required to file online or electronically by the act, especially
smaller entities. The bill would delete the limitation on the
provision of additional or enhanced functions or services by the
Secretary of State in the means or method for free online or
electronic filing. The bill would also delay the online or electronic
filing above requirements for certain general purpose committees and
slate mailer organizations with cumulative contributions
and expenditures reportable payments less than
$50,000 over 3 years until January 1, 2010, or until the first filing
due more than 6 months after the Fair Political Practices Commission
has certified that the free online filing processes developed by the
Secretary of State are sufficiently simple to access and use that a
person without technical training or support can reasonably be
expected to file without that training or support, whichever is
earlier.
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 2/3vote 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 2/3 vote.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) Contrary to its statutory duty, the Secretary of State has not
timely provided a means of free online or electronic filing that can
be used by an entity required to disclose information by the
Political Reform Act of 1974 to file that information online or
electronically without technical training or support.
(b) The Secretary of State must provide a free means of filing
online or electronically with appropriately enhanced functions and
services to make free filing a viable option.
(c) The cost of contracting with one of the services that can
assist a committee or organization to comply with online or
electronic filing obligations is prohibitive for some of the smaller
organizations that are required to file under the act.
(d) The Legislature did not intend to force those smaller
committees and organizations, which by virtue of their limited size
are less likely to distort democratic processes, to commit large
portions of their budgets to filing obligations or to drive them out
of operation by making them inefficient.
(e) Until the Secretary of State provides for free filing methods
that are accessible to smaller general purpose committees and slate
mailer organizations, as was foreseen at the time the Legislature
designed the online filing requirement, or until cost competition in
the offering of online filing services by private companies has
reduced the cost of compliance, it is inappropriate to apply the
online filing duty to smaller slate mailer organizations and general
purpose committees.
(f) Delaying until January 1, 2010, the electronic or online
filing obligations of general purpose committees and slate mailer
organizations with lesser cumulative revenues will enable the
marketplace to adjust and provide less expensive filing services
consistent with the lesser budgets of those committees and
organizations, in the event the Secretary of State continues to fail
to provide an appropriate free method of filing online or
electronically.
SEC. 2. Section 84602 of the Government Code is amended to read:
84602. To implement the Legislature's intent, the Secretary of
State, in consultation with the commission, notwithstanding any other
provision of the Government Code, shall do all of the following:
(a) Develop online and electronic filing processes for use by
persons and entities specified in Sections 84604 and 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 the disclosure requirements of this
title and shall include, at a minimum, the following:
(1) 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 subdivision shall not provide any
additional 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.
(2) 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
subdivision (a) of Section 84604 and Section 84605 and that conforms
with the disclosure requirements of this title. The Secretary of
State shall hold public hearings prior to 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 the requirements of this
chapter.
(b) 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 subdivision (a) 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.
(c) Develop a system that provides for the online or electronic
transfer of the data specified in this section utilizing
telecommunications technology that assures the integrity of the data
transmitted and that creates safeguards against efforts to tamper
with or subvert the data.
(d) 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.
(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) Implement sufficient technology to seek to prevent
unauthorized alteration or manipulation of the data.
(i) 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.
(j) 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.
(k) 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.
SEC. 3. Section 84605 of the Government Code is amended to read:
84605. Beginning on July 1, 2000, and for all applicable
reporting periods thereafter, the following persons shall file online
or electronically with the Secretary of State:
(a) Any candidate, including appellate court and Supreme Court
candidates and officeholders, 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 loans received is fifty thousand dollars
($50,000) or more. In determining the cumulative reportable amount,
all controlled committees, as defined by Section 82016, and
officeholder accounts, as defined by Section 85313, shall be
included. For a committee subject to this title prior to January 1,
2000, the beginning date for calculating cumulative totals is January
1, 2000. For a committee that is first subject to this title on or
after January 1, 2000, the beginning date for calculating cumulative
totals is the date the committee is first subject to this title. A
committee, as defined in subdivision (c) of Section 82013, shall file
online or electronically if it makes contributions of fifty thousand
dollars ($50,000) or more in a calendar year.
(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 to support or oppose
candidates for any elective state office or state measure. For a
committee subject to this title prior to January 1, 2000, the
beginning date for calculating cumulative totals is January 1, 2000.
For a committee that first is subject to this title on or after
January 1, 2000, the beginning date for calculating cumulative totals
is the date the committee is first subject to this title. However,
any entity that would otherwise be required by this subdivision to
file online or electronically that has not cumulatively received
contributions or made expenditures totaling fifty thousand dollars
($50,000) within three years of the applicable beginning date for
calculating cumulative totals need not file online or electronically
until January 1, 2010, or until the first filing due more than six
months after the commission has certified that the free online filing
processes developed by the Secretary of State pursuant to Section
84602 are sufficiently simple to access and use that a person without
technical training or support can reasonably be expected to file
without that training or support, whichever is earlier.
(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. For a slate mailer
organization subject to this title prior to January 1, 2000, the
beginning date for calculating cumulative totals is January 1, 2000.
For a slate mailer organization that first is subject to this title
on or after January 1, 2000, the beginning date for calculating
cumulative totals is the date the organization is first subject to
this title. However, any entity that would otherwise be required by
this subdivision to file online or electronically that has not
cumulatively received contributions or made expenditures
or made reportable payments totaling
fifty thousand dollars ($50,000) within three years of the applicable
beginning date for calculating cumulative totals need not file
online or electronically until January 1, 2010, or until the first
filing due more than six months after the commission has certified
that the free online filing processes developed by the Secretary of
State pursuant to Section 84602 are sufficiently simple to access and
use that a person without technical training or support can
reasonably be expected to file without that training or support,
whichever is earlier.
(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 on the Internet 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 or electronically by this section may do so voluntarily.
(g) Once a person or entity is required to file online or
electronically, subject to subdivision (a), (b), (c), (d), or (f),
the person or entity shall be required to file all subsequent reports
online or electronically.
(h) It shall be presumed that online or electronic filers file
under penalty of perjury.
(i) Persons filing online or 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 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 online and 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 online or electronic
version shall be the official version for audit and other legal
purposes.
SEC. 4. The Legislature finds and declares that the provisions of
this act further the purposes of the Political Reform Act of 1974
within the meaning of subdivision (a) of Section 81012 of the
Government Code.