BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  AB 2771|
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                                 THIRD READING


          Bill No:  AB 2771
          Author:   Leno (D)
          Amended:  6/26/06 in Senate
          Vote:     27

           
           SENATE ELEC., REAPP. & CONST. AMEND. COMM. :  4-0, 6/28/06
          AYES:  Bowen, Battin, Murray, Romero
          NO VOTE RECORDED:  Poochigian
           
          SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           ASSEMBLY FLOOR  :  76-0, 5/11/06 (Consent) - See last page  
            for vote


           SUBJECT  :    Political Reform Act 

           SOURCE  :     Author


           DIGEST  :    This bill suspends the requirement that certain  
          specified entities must file campaign reports online or  
          electronically until January 1, 2010, or until the first  
          filing due six months after the Secretary of State has  
          developed a free online filing process, whichever is  
          earlier.

           ANALYSIS  :    Existing law requires, by December 31, 2002,  
          the Secretary of State (SOS), in consultation with the Fair  
          Political Practices Commission (FPPC), to develop a means  
          or method whereby filers who are required to submit  
          campaign filings online or electronically may do so free of  
                                                           CONTINUED





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          charge.

          Existing law requires the following persons to file all  
          campaign reports online or electronically with the SOS:  

          1. Candidates who have received contributions or loans, or  
             made expenditures or loans, cumulatively totaling  
             $50,000 or more.

          2. General purpose committees that have received  
             contributions or made expenditures cumulatively totaling  
             $50,000 or more to support or oppose candidates for  
             elective state office or state measures.

          3. Slate mailer organizations with cumulative reportable  
             payments received or made of $50,000 or more.

          4. Lobbyists, lobbying firms, or lobbyist employers with  
             reportable payments, expenses, contributions, gifts, or  
             other items of $5,000 or more in any calendar quarter.
           
           Existing law sets the beginning date for calculating  
          cumulative totals to determine whether a candidate, general  
          purpose committee, or slate mailer organization is required  
          to file online or electronically as January 1, 2000, for a  
          committee or slate mailer organization that existed prior  
          to January 1, 2000.  For a committee or slate mailer  
          organization that did not exist prior to January 1, 2000,  
          the beginning date is the date the committee first became a  
          committee or slate mailer organization.

          This bill suspends the requirement that certain specified  
          entities file campaign reports online or electronically  
          until January 1, 2010, or until the first filing due six  
          months after the SOS has developed a free online filing  
          process, whichever is earlier.  Specifically, this bill:   

          1. Makes various findings and declarations about the cost  
             to committees for complying with the requirement to file  
             online or electronically and about the failure of the  
             SOS to provide a means of free online or electronic  
             filing.

          2. Provides that any general purpose committee, small  







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             contributor committee, or slate mailer organization that  
             is otherwise required by existing law to file online or  
             electronically that has not cumulatively received  
             contributions or made expenditures totaling $50,000  
             within three years of the applicable beginning date for  
             calculating cumulative totals, and does not exceed  
             $20,000 each year since the formation of the committee,  
             need not file online or electronically until January 1,  
             2010, or until the first filing date more than six  
             months after the FPPC has certified that the free online  
             filing processes developed by the SOS 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.

          3. Permits the SOS, when developing a means or method  
             whereby filers required to file campaign reports online  
             or electronically can do so free of charge, to include  
             some enhanced functions as long as the method does not  
             include any additional services beyond those needed to  
             file the campaign reports.

           Comment
           
          According to the author's office, local slate mailer  
          organizations that are required to file campaign reports  
          online have been put in an unfair position because the SOS  
          has not yet completed a free online filing method, as  
          required by law, and the two private vendors who provide  
          online filing services for slate mailer organizations are  
          unwilling to take the local slate mailer organizations as  
          clients because those organizations do not provide a 
          sufficient amount of business.  As a result, these local  
          slate mailer organizations are facing fines of $100 per day  
          for failure to file online, as required by law.  The FPPC  
          is aware of the situation and is declining to take  
          enforcement actions against these local slate mailer  
          organizations. However, a local slate mailer organization  
          could be subject to fines and civil penalties if a citizen  
          took advantage of the provisions of the Political Reform  
          Act that allow any citizen to file a civil suit to enforce  
          the Act. 

           FISCAL EFFECT :    Appropriation:  No   Fiscal Com.:  Yes    







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          Local:  No

           ASSEMBLY FLOOR  : 
          AYES:  Aghazarian, Arambula, Baca, Bass, 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, La Malfa,  
            La Suer, Laird, Leno, Levine, Lieber, Lieu, Liu,  
            Matthews, Maze, McCarthy, Montanez, Mountjoy, Mullin,  
            Nakanishi, Nation, Nava, Negrete McLeod, Niello, Oropeza,  
            Parra, Pavley, Plescia, Richman, Ridley-Thomas, Sharon  
            Runner, Ruskin, Salinas, Spitzer, Strickland, Torrico,  
            Tran, Umberg, Vargas, Villines, Walters, Wolk, Wyland,  
            Yee, Nunez
          NO VOTE RECORDED:  Benoit, Koretz, Leslie, Saldana


          DLW:mel  8/9/06   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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