BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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                                 THIRD READING


          Bill No:  SB 1118
          Author:   Ashburn (R)
          Amended:  5/26/10
          Vote:     27

           
           SENATE ELEC., REAP. & CONST. AMEND. COMM.  :  5-0, 4/20/10
          AYES:  Hancock, Denham, DeSaulnier, Liu, Strickland

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8


           SUBJECT  :    Political Reform Act of 1974:  contributions:   
          disclosure

           SOURCE  :     Governors Office of Planning and Research


           DIGEST  :    This bill requires the Governor or a Member of  
          the Legislature who receives a contribution or  
          contributions totaling $1,000 during a specified state  
          budget time period or a specified period before or after  
          the end of the first year or second year of a legislative  
          session to file online a report disclosing the contribution  
          or contributions within 24 hours of the time the  
          contribution is made or received, except that the  
          contribution would only be required to comply with this  
          provision if he/she were already required to file online or  
          electronically pursuant to another provision of existing  
          law.  This bill also requires the Fair Political Practices  
          Commission to issue a reporting calendar by January 15 of  
          each year which delineates the new reporting periods.

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           ANALYSIS  :    Existing law, pursuant to the Political Reform  
          Act, 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 additionally requires the Governor or a member of  
          the Legislature who receives a contribution or contribution  
          totaling $1,000 to file an online report disclosing the  
          contribution within 24 hours of the time it is made or  
          received during the following periods:

          1. Between the date in May that the Director of the  
             Department 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.

          2. 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.

          3. For a contribution made to the Governor, the 30-day  
             period following the date the Legislature adjourns each  
             year of the legislative session.

          This bill requires the Fair Political Practices Commission  
          to issue a reporting calendar no later than January 15 of  
          each year which delineates the reporting periods required  







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          by this bill, and provides that a contribution that is  
          required to be reported within 24 hours of the receiving of  
          that contribution pursuant to any other provision of law,  
          is not required to be reported again pursuant to this bill.

           Comments  

          According to a press release issued by the Fair Political  
          Practices Commission 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."

          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  
          data; last-minute contribution and independent expenditure  
          reporting; and strong enforcement provisions."  

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

           SUPPORT  :   (Verified  4/20/10) (per Senate Elections,  
          Reapportionment and Constitutional Amendments Committee  
          analysis)








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          Governor's Office of Planning and Research (source)


           ARGUMENTS IN SUPPORT  :    According to the author's office,  
          this bill provides 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.


          DLW:mw  5/27/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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