BILL ANALYSIS                                                                                                                                                                                                    






               SENATE COMMITTEE ON ELECTIONS, REAPPORTIONMENT AND  
                           CONSTITUTIONAL AMENDMENTS
                          Senator Loni Hancock, Chair


          BILL NO:   AB 1514                            HEARING DATE:  
          7/7/09
          AUTHOR:    HAYASHI                            ANALYSIS BY:   
             Darren Chesin
          AMENDED:   6/17/09
          FISCAL:    YES
          
                                     SUBJECT

           Political Reform Act of 1974: reporting

                                   DESCRIPTION  
          
           Existing law  provides for all of the following:

           Requires a slate mailer organization to file semiannual  
            campaign statements for each period in which it has  
            received payments totaling $500 or more from any person  
            for the support of or opposition to candidates or ballot  
            measures in a slate mailer, or in which it has expended  
            $500 or more to produce one or more slate mailers.

           Requires a candidate for state office to file campaign  
            reports online or electronically with the Secretary of  
            State (SOS) if the candidate receives contributions or  
            loans or makes expenditures or loans totaling $50,000 or  
            more.  

           Requires a committee to file campaign reports online or  
            electronically with the SOS if the committee receives  
            contributions or makes expenditures totaling $50,000 or  
            more to support or oppose candidates for any elective  
            state office or state measure.

           Defines "election cycle" as the period of time commencing  
            90 days prior to an election and ending on the date of  
            the election.

           Requires a candidate for elective state office who is  
            required to file campaign reports online or  
            electronically with the SOS to file an online or  









            electronic report disclosing any contribution of $1,000  
            or more received during an election cycle within 24 hours  
            of receiving such a contribution. 

           Requires such a candidate to file an online or electronic  
            report disclosing any contribution of $5,000 or more  
            received at any time other than during an election cycle  
            within 10 business days of receiving such a contribution.

           Requires a committee that is primarily formed to support  
            or oppose one or more state ballot measures and that is  
            required to file campaign reports online or  
            electronically with the SOS to file an online or  
            electronic report disclosing any contribution of $1,000  
            or more received during an election cycle within 24 hours  
            of receiving such a contribution.

           Requires such a committee to file an online or electronic  
            report disclosing any contribution of $5,000 or more  
            received at any time other than during an election cycle  
            within 10 business days of receiving such a contribution.

           This bill  requires state campaign committees that are  
          required to file campaign reports online or electronically  
          to disclose 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.  It also  
          requires these committees to report, within 10 business  
          days of receipt, contributions of $5,000 or more at any  
          other time and increases reporting requirements for slate  
          mailer organizations.  Specifically,  this bill  requires:  

           Slate mailer organizations to file semi-annual campaign  
            statements regardless of the amount of payments received  
            or expenditures made to produce slate mailers.

           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 SOS, to file an online or  
            electronic report disclosing any contribution of $1,000  
            or more received during the last 90 days before an  
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          2  
           








            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 candidate 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.

           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.  

                                    BACKGROUND  
          
          SB 49 (Karnette), Chapter 866, Statutes of 1997, the Online  
          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.
           
                                     COMMENTS
          
           1.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.

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          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."

           2.According to the sponsor  , the SOS, the amendments of June  
            17, 2009, make clear that election cycle reports  
            disclosing contributions and payments of $1,000 or more  
            will be required only if the committee is involved in an  
            election associated with the election cycle, except that  
            candidates for state elective office and their controlled  
            committees and committees formed primarily to support or  
            oppose state ballot measures will remain subject to the  
            election-cycle reporting requirements as they are now.  

          The amendments also make clear that all online/electronic  
            recipient committees and slate mailer organizations will  
            be required to file non-election cycle reports disclosing  
            $5,000 or more in contributions/payments received.  

          3.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.   

                                   PRIOR ACTION
           
          Assembly Elections and Redistricting Committee:6-0
          Assembly Appropriations Committee:         15-1
          Assembly Floor:                             77-0
                                         


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                                   POSITIONS  

          Sponsor: Secretary of State

           Support: League of Women Voters of California

           Oppose:  None received

































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