BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 481|
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THIRD READING
Bill No: AB 481
Author: Gordon (D), et al.
Amended: 8/13/12 in Senate
Vote: 27
SENATE ELECTIONS & CONST. AMEND. COMMITTEE : 5-0, 7/3/12
AYES: Correa, La Malfa, Gaines, Lieu, Yee
SENATE APPROPRIATIONS COMMITTEE : 7-0, 8/16/12
AYES: Kehoe, Walters, Alquist, Dutton, Lieu, Price,
Steinberg
ASSEMBLY FLOOR : Not relevant
SUBJECT : Political Reform Act of 1974
SOURCE : Fair Political Practices Commission
DIGEST : This bill makes numerous changes to laws
governing the reporting of independent campaign
expenditures and identifying an independent expenditure
committees principal officer for liability purposes.
ANALYSIS :
Existing law:
1. Requires that a statement of organization for a campaign
committee disclose the full name, street address, and
telephone number of the treasurer or principal officer,
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and requires candidates and state ballot measure
proponents to verify their campaign statements.
2. Defines "late contribution" and "late independent
expenditure" as any contribution or independent
expenditure totaling in the aggregate $1,000 or more
that is made for or against any specific candidate,
committee, or measure involved in an election that is
made or received before the date of the election but
after the closing date of the last campaign statement
required to be filed prior to the election. Independent
expenditures of $1,000 or more made to state candidates
or measures up to 90 days prior to an election must be
reported within 24 hours. However, for local candidates
or measures, only those expenditures made during the 16
days before an election are required to be reported
within 24 hours.
3. Requires that broadcast and mass mailing advertisements
which are paid for by an independent expenditure that
are supporting or opposing candidates or ballot measures
disclose the name of the committee, and the names of the
persons from whom the committee making the independent
expenditure has received its two highest cumulative
contributions of $50,000 or more during the 12 month
period prior to the expenditure.
This bill makes several changes to update campaign
reporting as follows:
1. Requires each campaign committee that is required to
file a campaign statement to identify its principal
officer who must sign the following verification: "I
have not received any unreported contributions or
reimbursement to make these independent expenditures. I
have not coordinated any expenditure made during this
reporting period with the candidate or the opponent of
the candidate who is the subject of the expenditure,
with the proponent or the opponent of the state measure
that is the subject of the expenditure, or with the
agents of the candidate or the opponent of the candidate
or the state measure proponent or opponent."
2. Redefines "late contribution" and "late independent
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expenditure" as one made within 90 days before the date
of the election at which the candidate or measure is to
be voted on. In addition, this bill requires that a
report of a late independent expenditure also disclose
the cumulative total the committee has expended for
independent expenditures relating to the candidate or
measure.
3. Requires any advertisements which are paid for by an
independent expenditure that are supporting or opposing
candidates or ballot measures to disclose the name of
the committee, and the names of the persons contributing
the two highest cumulative contributions of $50,000 or
more.
Background
Proposition 34 and Growth of Independent Expenditures . In
2000, the Legislature enacted SB 1223 (Burton), Chapter
102, Statutes of 2000, which became Proposition 34 on the
November 2000 General Election ballot. The Proposition,
which passed with 60 percent of the vote, made numerous
substantive changes to the Political Reform Act, including
enacting new campaign disclosure requirements and
establishing new campaign contribution limits, and limiting
the amount that individuals could contribute to state
campaigns (ranging from $3,000 to $20,000 per election at
the time, depending on the office).
A study done by the Assembly Elections and Redistricting
Committee in 2006 and a subsequent report by the FPPC found
that since campaign contribution limits went into effect in
California with the passage of Proposition 34, the amount
of campaign spending done through independent expenditures
increased by more than 6,000 percent in legislative
elections, and more than 5,500 percent in statewide
elections. On the other hand, prior to the enactment of
contribution limits as a part of Proposition 34,
independent expenditures were relatively rare.
Independent Expenditure Reports are filed online with the
Secretary of State by state electronic filers during the 90
days prior to an election. The forms are filed online or
faxed to local clerks during the 16 days before an
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election, unless local law requires a longer period. The
reports are filed on a transaction-by-transaction basis,
and they disclose isolated independent expenditures as they
are made. Third parties who are interested in tracking
independent expenditures must add the amounts spent on
successive reports together to get the total independent
expenditures by a committee or entity on a particular
candidate or measure.
This bill requires the cumulative total a committee or
entity has spent in independent expenditures on a candidate
or measure supported or opposed to be displayed on the
Independent Expenditure Report, in addition to the amount
of the most recent independent expenditure. This
information is already available and tracked by independent
expenditure committees.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
According to the Senate Appropriations Committee analysis,
the Fair Political Practices Commission (FPPC) indicates
minor, absorbable costs (General).
SUPPORT : (Verified 8/20/12)
Fair Political Practices Commission
Secretary of State
DLW:d 8/20/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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