BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2771
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          Date of Hearing:   May 3, 2006

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                   Judy Chu, Chair

                     AB 2771 (Leno) - As Amended:  April 3, 2006 

          Policy Committee:                              ElectionsVote:6-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable: 

           SUMMARY  

          This bill:


          1)Provides that any general purpose committee, small contributor  
            committee, or slate mailer organization that is otherwise  
            required to file reports to the Secretary of State (SOS)  
            online or electronically, and that has not cumulatively  
            received contributions or made expenditures totaling $50,000  
            within three years of the applicable beginning date for  
            calculating cumulative totals, need not file online or  
            electronically until the earlier of (a) January 1, 2010, or  
            (b) until the first filing date more than six months after the  
            Fair Political Practices Commission (FPPC) has certified that  
            the SOS's free online filing processes are sufficiently simple  
            to access and use. 


          2)Permits the SOS, when developing a means free filing of  
            campaign reports online or electronically, to include some  
            enhanced functions as long as the method does not include any  
            additional services beyond those needed to file the campaign  
            reports.


           FISCAL EFFECT  

          Minor fiscal impact to the SOS.

           COMMENTS  










                                                                  AB 2771
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           1)Background  . SB 49 (Karnette)/Chapter 866 of 1997, required the  
            SOS to develop a process whereby reports and statements  
            required under the PRA could be filed online and viewed by the  
            public. SB 49 also required certain candidates, committees,  
            slate mailer organizations, lobbyists, lobbyist employers, and  
            lobbying firms to file campaign reports online. AB 696  
            (Longville)/ Chapter 917 of 2001, required the SOS, by  
            December 31, 2002, to provide a means whereby individuals  
            subject to online and electronic filing disclosure  
            requirements of the PRA could do so free of charge. However,  
            more than three years after the deadline, the SOS has not yet  
            completed the free online filing method for all individuals  
            required to file online or electronically. While all quarterly  
            lobbying disclosure forms can be filed online or  
            electronically for free, there are a number of campaign  
            disclosure forms that cannot be filed online or electronically  
            for free. 



           2)Purpose  . This bill would temporarily suspend the electronic  
            filing requirement for certain general purpose committees and  
            slate mailer organizations until 2010 or until the first  
            filing due six months after SOS has finished the free filing  
            system, whichever comes first. The suspension would apply only  
            for those committees and slate mailer organizations that did  
            not reach the cumulative thresholds for filing electronically  
            within the first three years of the beginning date for  
            calculating cumulative totals. That means that committees and  
            slate mailer organizations that existed prior to January 1,  
            2000 will not be required to file online or electronically  
            unless they reached the threshold for mandatory online filing  
            before January 1, 2003-the date by which the free filing  
            system was required to be in operation.



           3)Related Legislation  . AB 2902 (Nunez), also on today's  
            committee agenda, requires the SOS to report to the  
            Legislature on the implementation and development of online  
            and electronic filing of campaign reports, with a specific  
            emphasis on the status of the development of a method by which  
            filers may file required reports online or electronically free  
            of charge.









                                                                  AB 2771
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           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081