BILL ANALYSIS
AB 1514
Page 1
ASSEMBLY THIRD READING
AB 1514 (Hayashi)
As Amended April 28, 2009
2/3 vote
ELECTIONS 6-0 APPROPRIATIONS 15-1
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|Ayes:|Fong, Adams, Bill |Ayes:|De Leon, Nielsen, |
| |Berryhill, Coto, Saldana, | |Ammiano, |
| |Swanson | |Charles Calderon, Davis, |
| | | |Duvall, Krekorian, Hall, |
| | | |Harkey, |
| | | |John A. Perez, Price, |
| | | |Skinner, Solorio, |
| | | |Audra Strickland, |
| | | |Torlakson |
| | | | |
|-----+--------------------------+-----+--------------------------|
| | |Nays:|Miller |
| | | | |
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SUMMARY : Requires a state campaign committee that is required
to file campaign reports online or electronically to report
receiving a contribution of $1,000 or more within 24 hours
during the last 90 days before an election if the committee has
made a contribution or independent expenditure in connection
with that election. Requires such a campaign committee to
report receiving contributions of $5,000 or more received at any
other time within 10 business days. Significantly increases
reporting requirements for slate mailer organizations.
Specifically, this bill requires:
1)Slate mailer organizations to file semi-annual campaign
statements regardless of the amount of payments received or
expenditures made to produce slate mailers.
2)All committees, instead of just candidates for elective state
office and committees primarily formed to support or oppose
one or more state ballot measures, that are required to file
campaign reports online or electronically with the Secretary
of State (SOS), to file an online or electronic report
disclosing any contribution of $1,000 or more received during
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the last 90 days before an election within 24 hours of
receiving such a contribution. Requires such committees to
file an online or electronic report disclosing any
contribution of $5,000 or more received at any time other than
the last 90 days before an election within 10 business days of
receiving such a contribution. Provides that a committee that
is not a controlled committee is not required to file such
reports unless the committee makes a contribution to, or
independent expenditure in connection with, a candidate or
ballot measure during an election cycle.
3)A slate mailer organization that is required to file campaign
reports online or electronically with the SOS to file an
online or electronic report disclosing any payment of $1,000
or more received during the last 90 days before an election
within 24 hours of receiving such a payment. Requires such a
slate mailer organization to file an online or electronic
report disclosing any payment of $5,000 or more received at
any time other than the last 90 days before an election within
10 business days of receiving such a payment.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, minor absorbable costs to the SOS and to the Fair
Political Practices Commission (FPPC), which enforces the
Political Reform Act (PRA).
COMMENTS : According to the author, "Existing law contains a
number of financial disclosure requirements for political
organizations. Certain exemptions were created in order to
limit the filing burden on political committees in the era
before the Secretary of State's office offered a free online
filing system. Now that a free online filing system exists, the
original rationale behind the exemptions has largely vanished.
California law requires slate mailer organizations to file
semiannual campaign statements only if they have (a) received
$500 or more form any person in support or opposition of any
candidate or ballot measure, or (b) spent $500 or more to
produce one or more slate mailings. AB 1514 calls for increased
financial disclosure by requiring all recipient political
committees and slate mailers to report significant financial
contributions consistent with the existing requirements for
state candidates and state ballot measure committees."
SB 49 (Karnette), Chapter 866, Statutes of 1997, the Online
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Disclosure Act 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, Statutes of 2001, required the
SOS to provide, by December 31, 2002, a means or method whereby
individuals subject to online and electronic filing disclosure
requirements of the PRA may submit required filings free of
charge. However, it was not until February 1, 2007 that the SOS
announced completion of the free online filing method for all
individuals who are required to file online or electronically.
Under existing law, the SOS is required to determine and
publicly disclose when the online and electronic campaign
disclosure systems are operating effectively. Despite the fact
that legislation requiring the development of an online campaign
disclosure system was enacted in 1997, the SOS has never made a
public determination that the online disclosure system is
operating effectively. The SOS did hold a joint public hearing
with the FPPC to determine whether the online disclosure system
was operating effectively in September 2007, but that hearing
was not followed by any public determination on the system's
effectiveness by the SOS.
Given that it has been 12 years since the Legislature required
the creation of an online campaign disclosure system, and given
the fact that the SOS still has not determined that the system
is operating effectively, it is unclear whether it is timely and
appropriate to expand the situations under which reports are
required to be filed using that system.
California voters passed an initiative, Proposition 9, in 1974
that created the FPPC and codified significant restrictions and
prohibitions on candidates, officeholders and lobbyists. That
initiative is commonly known as the PRA. Amendments to the PRA
that are not submitted to the voters, such as those contained in
this bill, must further the purposes of the initiative and
require a two-thirds vote of both houses of the Legislature.
Analysis Prepared by : Ethan Jones / E. & R. / (916) 319-2094
AB 1514
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