BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1181
                                                                  Page  1

          Date of Hearing:   May 13, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                    AB 1181 (Huber) - As Amended:  April 28, 2009 

          Policy Committee:                              ElectionsVote:6-1

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill amends the Political Reform Act (PRA) by lowering the  
          monetary thresholds that trigger mandatory electronic reporting  
          (as opposed to allowing paper reporting) of campaign  
          contributions and expenditures by candidates, officeholders,  
          major donors, and slate mailer organizations.  Specifically,  
          this bill:

          1)Lowers, from $50,000 to $25,000, the cumulative amount of  
            contributions received, expenditures made, loans made, or  
            loans received by a candidate or committee in connection with  
            a state office or measure before the filing of campaign  
            reports electronically is required.

          2)Lowers, from $50,000 to $25,000, the cumulative amount of  
            contributions received or expenditures made by a general  
            purpose committee to support or oppose candidates for state  
            office or state measures before the filing of campaign reports  
            electronically is required.

          3)Lowers, from $50,000 to $25,000, the cumulative amount of  
            reportable payments received or made to produce slate mailers  
            before a slate mailer organization must file campaign reports  
            electronically.

          4)Lowers, from $5,000 to $2,500 in a calendar quarter, the  
            amount of reportable payments, expenses, contributions, gifts,  
            or other items that must be made by a lobbyist, lobbying firm,  
            or lobbyist employer before filing of periodic lobbying  
            disclosure reports electronically is required.

          5)Eliminates the requirement that paper copies of certain  








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            campaign reports regarding statewide candidates and measures  
            be filed with Los Angeles and San Francisco Counties.  

          6)Eliminates the requirement that members of the Legislature and  
            Board of Equalization, court of appeal justices, superior  
            court judges, and candidates for those offices file paper  
            copies of campaign reports with the elections official of the  
            county with the largest number of registered voters in the  
            districts affected.

          7)Requires candidates for the Board of Administration of the  
            Public Employees Retirement System to file campaign reports  
            online or electronically with the Secretary of State (SOS).

          8)Provides that if a late contribution is required to be  
            reported to the SOS, that report is to be submitted by online  
            or electronic transmission only, and a paper copy of the  
            report is not required.

          9)Provides that if a late independent expenditure is required to  
            be reported to the SOS, that report is to be submitted  
            electronically.

          10)Requires lobbyist registration statements and amendments to  
            those statements to be filed both by online or electronic  
            means and physically, submitting the original statement and  
            one copy in paper format.

           FISCAL EFFECT  

          No net fiscal impact to the SOS, with whom campaign reports are  
          filed.

           COMMENTS  

           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 to  
            provide a means whereby individuals subject to mandatory  
            electronic or online filing may submit required filings free  








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            of charge.  While AB 696 required the free filing option to be  
            developed by December 31, 2002, the SOS did not report  
            completing the free filing option until February 1, 2007.   
            Moreover, the SOS has not yet to make a public determination,  
            required under current law, that the online campaign  
            disclosure system is operating effectively.

           2)Purpose  .  This bill originally required that filing of all  
            required campaign reports with the SOS be done electronically.  
             Given concerns about the burden this could cause for small  
            campaigns and whether the current online reporting system is  
            sufficiently user friendly, amendments adopted in the policy  
            committee instead lower the threshold at which candidates and  
            committees must file reports online or electronically from  
            $50,000 to $25,000, and lower the threshold at which lobbying  
            reports must be filed online or electronically from $5,000 to  
            $2,500.  These changes will still significantly expand the  
            amount of campaign finance information that is available  
            online without imposing potentially significant new burdens on  
            candidates and committees that have relatively little campaign  
            activity.

           3)Related Legislation  .  AB 1514 (Hayashi), also on today's  
            committee agenda, enhances electronic filing requirements for  
            campaign committees and slate mailer organizations.

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