BILL ANALYSIS
SENATE COMMITTEE ON ELECTIONS, REAPPORTIONMENT AND
CONSTITUTIONAL AMENDMENTS
Senator Loni Hancock, Chair
BILL NO: SB 1118 HEARING DATE:
4/20/10
AUTHOR: ASHBURN ANALYSIS BY:
Darren Chesin
AMENDED: 4/8/10
FISCAL: YES
SUBJECT
Campaign contribution reports: 24-hour reporting
DESCRIPTION
Existing law , pursuant to the Political Reform Act (PRA),
requires candidates for elective state and local office and
committees formed or existing primarily to support or
oppose those candidates to file periodic reports disclosing
contributions and expenditures made in connection with
those campaigns. These reports are required to be filed on
a semi-annual basis and more frequently as the date of an
election nears. Furthermore, contributions of $5,000 or
more must be reported within 10 business days on an ongoing
basis and contributions of $1,000 or more must be reported
by state candidates within 24 hours during the 90 days
prior to an election. State candidates and committees who
raise or expend funds in excess of specified thresholds
must also file their reports online.
This bill would additionally require the contributor and
recipient of a contribution to the Governor or a member of
the Legislature totaling $1,000 or more to file an online
report disclosing the contribution within 24 hours of the
time it is made or received during the following periods:
Between the date in May that the Director of Finance
provides to the Legislature a revised estimate of the
General Fund revenues for the current fiscal year and the
ensuing fiscal year, any proposals to reduce expenditures
based on that estimate, and any proposed adjustments to
the Governor's Budget through the date of the enactment
of the Budget Bill for the fiscal year commencing the
following July 1.
The 15-day period before the date scheduled for the
Legislature to adjourn in joint recess during the first
calendar year of the legislative session or during the
15-day period before September 1 of the second calendar
year of the legislative session.
For a contribution made to the Governor, the 30-day
period following the date the Legislature adjourns each
year of the legislative session.
BACKGROUND
When Does Fundraising Really Heat Up ? According to a press
release issued by the Fair Political Practices Commission
(FPPC) on September 16, 2009, "more than 25 percent of all
fundraisers held, and more than 25 percent of all money
solicited, in Sacramento during 2009 occurred in the final
three weeks of the legislative session. During August 24
through September 11, 86 political fundraisers were held in
the Capital City, soliciting nearly $340,000 in campaign
contributions. The busiest days of the year were August 25
and 26, when 35 fundraising events were held, asking for
combined maximum contributions of nearly $130,000 per
contributor.
How Well Do California's Current Disclosure Laws Stack Up ?
According to Grading State Disclosure 2008, California
ranked second only to Washington among all states in a
nationwide assessment of state campaign disclosure laws and
practices conducted by the Campaign Disclosure Project, a
collaboration of the California Voter Foundation, the
Center for Governmental Studies, and the UCLA School of Law
and supported by The Pew Charitable Trusts.
The Campaign Disclosure Project evaluated, graded, and
ranked each state in four categories: campaign disclosure
laws; electronic filing programs; public access to campaign
finance data; and disclosure web site usability.
According to the assessment, California obtained the number
one ranking in the law category through "detailed
contributor disclosure, including occupation and employer
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data; last-minute contribution and independent expenditure
reporting; and strong enforcement provisions."
COMMENTS
1.According to the author , this bill would provide greater
transparency to the public in regards to fundraising by
the Legislature and Governor during key legislative
seasons. The public has shown increasing frustration
with lawmakers over both real and perceived influence of
special interests. The goal of this bill is to increase
public confidence that lawmakers are appropriately
focused on legislative and budget priorities rather than
fundraising during critical negotiations. Requiring
immediate reporting of campaign contributions is an
important first-step in informing the public and
restoring public trust.
2.What's So Special About the Budget ? Legislation is
introduced and acted upon throughout the entirety of the
legislative session, not just during the period when the
budget is acted upon. Given the FPPC's findings (see
discussion under Background), is the budget schedule even
relevant to this issue?
3.You Want It When ? Is it reasonable to expect filers
(especially contributors) to keep track of when the "May
revise" is released, enactment of the final budget, and
other Capitol functions so that they may comply with the
24-hour online reporting requirements of this bill?
Staff suggests that the reporting periods in this bill be
clarified with specific dates in order to avoid
unintentional violations. An alternative would be to
direct the FPPC to issue a reporting calendar no later
than January 31 each year containing the reporting dates.
4.More Than Just Committees . This bill applies to all
contributors of $1,000 or more whether or not they
otherwise qualify as committees who have online filing
obligations under current law. Is it reasonable to
require individuals and small committees to file 24-hour
online reports? Staff suggests that this bill be amended
to apply only to candidates and committees that already
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have to file online reports.
5.Once Is Not Enough ? Existing law already requires
contributions of $5,000 or more to be reported within 10
days on a year-round basis, and 24-hour reporting of
$1,000 contributions during the 90 days prior to an
election which would, at times, overlap this bill and
cause double reporting of the same contributions.
POSITIONS
Sponsor: Governor's Office of Planning and Research
Support: None received
Oppose: None received
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