BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2191
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          Date of Hearing:   April 17, 2012

                  ASSEMBLY COMMITTEE ON ELECTIONS AND REDISTRICTING
                                  Paul Fong, Chair
                 AB 2191 (Norby) - As Introduced:  February 23, 2012
          
          SUBJECT  :  Political Reform Act of 1974: economic interest 
          disclosure.

           SUMMARY  :   Excludes candidates for political party central 
          committees from the requirements to file campaign disclosure 
          reports.  Specifically,  this bill  :  

          1)Excludes membership on a county central committee of a 
            political party from the definition of an "elective office" in 
            the Political Reform Act (PRA).

          2)Provides that an entity primarily formed to support or oppose 
            a person seeking election to a county central committee of a 
            political party is not considered a "committee" for the 
            purposes of the PRA.

          3)Prohibits a local government agency from imposing any filing 
            requirements on elected members of, or candidates for election 
            to, a county central committee of a political party or on 
            entities primarily formed to support or oppose a person 
            seeking election to a county central committee of a political 
            party.

          4)Prohibits a local jurisdiction from imposing contribution 
            limitations or prohibitions on elected members of, or 
            candidates for election to, a county central committee of a 
            political party, or on an entity primarily formed to support 
            or oppose a person seeking election to a county central 
            committee of a qualified political party.

          5)Requires the Secretary of State to submit the provisions of 
            this bill to the voters at the next statewide election 
            occurring at least 131 days after the adoption of this bill. 

           EXISTING LAW  : 

          1)Defines "elective office," for the purposes of the PRA, as any 
            state, regional, county, municipal, district, or judicial 
            office that is filled at an election, and provides that the 







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            term "elective office" includes membership on a county central 
            committee of a qualified political party and membership 
            through election on the Board of Administration of the Public 
            Employees' Retirement System or the Teachers' Retirement 
            Board.

          2)Defines the term "committee" for the purposes of the PRA as 
            any person or combination of persons who directly or 
            indirectly does any of the following:

             a)   Receives contributions totaling $1,000 or more in a 
               calendar year;

             b)   Makes independent expenditures totaling $1,000 or more 
               in a calendar year; or,

             c)   Makes contributions totaling $10,000 or more in a 
               calendar year to or at the behest of candidates or 
               committees.

          3)Requires the Legislature to provide for partisan elections for 
            party central committees, among other offices.

          4)Requires elected officers, candidates for elective office, and 
            committees to file periodic campaign disclosure reports.

          5)Permits local government agencies to adopt ordinances that 
            affect campaign contributions and expenditures, subject to 
            certain limitations.  Permits local jurisdictions to adopt 
            contribution limitations and other prohibitions on campaigns, 
            subject to certain limitations.

          6)Provides that any amendment to the PRA that does not further 
            the purposes of the PRA may become effective only when 
            approved by voters.

           FISCAL EFFECT  :   Unknown.  Although this bill is keyed 
          non-fiscal by the Legislative Counsel, this Committee has been 
          instructed by the Assembly Rules Committee to re-refer it to the 
          Assembly Appropriations Committee upon approval by this 
          Committee, due to the costs associated with submitting a measure 
          to the voters.

           COMMENTS  :   








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           1)Purpose of the Bill  :  According to the author:

               As written, the Political Reform Act (PRA) places a 
               costly and time consuming burden on thousands of 
               political party volunteers in California.  The PRA 
               defined any person who appears on the ballot as 
               someone running for "elective office."  The intent of 
               this action was to capture all governmental elected 
               officials, and it succeeded.  This action also lumped 
               in thousands of political party volunteers into new 
               expensive and cumbersome reporting requirements.

               Political volunteers serve no governmental function.  
               They do not handle any public money, they don't vote 
               on policy or budget issues, and they conduct no public 
               business.

               Additionally, earlier this year AB 1200 (Ma) was 
               signed by the Governor and this bill also moved away 
               from treating central committee members as elected 
               officials.  AB 1200 no longer requires a public 
               officer to administer their oath.  In fact, political 
               volunteers are no longer entitled to a governmental 
               "certificate of election."

               AB 2191 would revise the Political Reform Act 
               definition of "elective office" to include membership 
               on a county central committee of a qualified party.

           2)Membership on a Central Committee is Not a Public Office  :  
            Although elections for county central committee for political 
            parties are publicly conducted elections, state courts have 
            held that the elective offices of political parties are not 
            public offices, because those offices do not involve the 
            exercise of the sovereign functions of government.  (See  Moore 
            v. Panish  (1982), 32 Cal.3d 535, 545,  Azevedo v. Jordan  
            (1965), 237 Cal.App.2d 521, 528, and  Stout v. Democratic 
            County Central Committee  (1952), 40 Cal.2d 91, 94.)  Instead, 
            county central committees of political parties generally are 
            charged with conducting those parties' political campaigns 
            under the general direction of the state central committee 
            (See Elections Code Sections 7240, 7440, 7690, and 7880).

          The fact that central committees are not public offices, and do 
            not exercise the sovereign power of the government, raises the 







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            question of whether there is a reason to require such 
            candidates to file campaign disclosure reports.  Generally, 
            the campaign disclosure requirements of the PRA are designed 
            to ensure that public officials perform their official duties 
            in an impartial manner and to protect against disproportionate 
            influence over governmental decisions by large contributors to 
            election campaigns.  Because central committee members do not 
            make governmental decisions, however, these purposes do not 
            appear to be served by requiring candidates for central 
            committee to comply with the campaign disclosure provisions of 
            the PRA.

           3)But Central Committee Elections are Constitutionally 
            Guaranteed  :  On the other hand, while membership on a county 
            central committee is not a public office that exercises the 
            sovereign power of the government, political party central 
            committees are bodies that are recognized in the state 
            constitution, and the constitution explicitly requires that 
            the Legislature provide for partisan elections for those 
            offices.  Proposition 14, which was approved by the voters on 
            the June 2010 statewide primary election ballot, is best known 
            as the measure that implemented a top two primary election 
            system in California for most elective state and federal 
            offices.  However, in addition to establishing the top two 
            primary system, Proposition 14 also amended Article II, 
            Section 5 of the California Constitution to provide that 
            "�t]he Legislature shall provide for partisan elections for . 
            . . party central committees."

          Even though central committees do not exercise governmental 
            powers, the fact that these offices are constitutionally 
            recognized and the fact that the Constitution guarantees 
            publicly conducted elections for these offices seems to weaken 
            the argument that candidates for such offices shouldn't be 
            subject to the same requirements as all other candidates who 
            appear on the ballot in California at a publicly-conducted 
            election.  
           
           4)Central Committee Campaigns and Possible Amendment  :  Although, 
            there are hundreds of candidates for county central committees 
            statewide in each even-numbered year, it is relatively rare 
            for candidates for county central committees to raise and 
            spend more than a nominal amount of money for their campaigns. 
             Even candidates who do not raise or spend large amounts of 
            money on their campaigns, however, are required to file 







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            certain campaign disclosure documents.  Specifically, all 
            candidates for elective office in California must file a Form 
            501-a statement of intention to be a candidate-before raising 
            or spending any money in connection with the election (the 
            only exception is that a candidate may use personal funds to 
            pay a filing fee or for the costs of a candidate statement 
            prior to filing a Form 501).  Candidates who raise or spend 
            less than $1,000 in a calendar year must also file a "short 
            form" campaign statement once a year, while candidates who 
            raise or spent $1,000 or more in a calendar year have more 
            extensive reporting requirements.  Because of the number of 
            candidates statewide for county central committee, these 
            requirements can result in hundreds of pages of campaign 
            disclosure reports being filed in each election year that 
            disclose little or no campaign activity.

          In at least a few situations, however, candidates for central 
            committees have raised and spent significant amounts of money. 
             For instance, at the June 2010 primary election, at least six 
            candidates for central committee in San Francisco made 
            expenditures of over $30,000, while several other candidates 
            made expenditures of over $10,000.  In many cases, candidates 
            who raised and spent significant amounts of money on their 
            campaigns for central committee also ran for other elective 
            offices in San Francisco within a year of the campaign for 
            central committee.  This may suggest that, in some cases, 
            candidates for central committee in San Francisco are using 
            their campaigns to help raise their profiles for subsequent 
            campaigns for public office.  If that is the case, there may 
            be a strong rationale for requiring candidates for central 
            committee to comply with the disclosure requirements in the 
            PRA, since people may be making contributions to candidates 
            for central committee with the intention of helping those 
            candidates get elected to public office at a subsequent 
            election.

          In light of the foregoing, if the intent of this bill is to 
            minimize the burden imposed on typical central committee 
            candidates who raise and spend very little money in connection 
            with their elections, and to minimize the burden on county 
            clerks who must process disclosure reports that are filed by 
            these candidates, there may be a way to significantly reduce 
            those burdens while ensuring that candidates for central 
            committee who raise and spend large amounts of money are still 
            required to file campaign disclosure reports under the PRA.  







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            Specifically, the committee may wish to consider amending this 
            bill to provide that candidates for central committee that 
            raise or spend less than $1,000 in a calendar year are not 
            subject to the reporting requirements of the PRA, while still 
            requiring candidates who raise or spend more than $1,000 to 
            comply with the PRA's disclosure requirements.

           5)Previous Legislation  :  Among other provisions, AB 1200 (Ma), 
            Chapter 8, Statutes of 2012, eliminated the requirement for 
            elections officials to issue a certificate of election to each 
            elected member of a political party's county central 
            committee, and authorized central committee officials to 
            administer the oath of office to central committee members.  A 
            primary purpose of these changes was to reduce the workload 
            for county elections officials to conduct central committee 
            elections, and part of the justification for these changes was 
            that central committees are not public offices. 

           6)Related Legislation  :  SB 1272 (Kehoe) provides for central 
            committee elections to be conducted every four years, at the 
            presidential primary election, instead of every two years, at 
            the statewide direct primary election, and specifies that a 
            county central committee may select its members at any time by 
            holding a caucus or convention, or by using any other method 
            of selection approved by the committee.  SB 1272 is pending in 
            the Senate Committee on Elections & Constitutional Amendments.  
           
           7)Political Reform Act of 1974  :  California voters passed an 
            initiative, Proposition 9, in 1974 that created the Fair 
            Political Practices Commission and codified significant 
            restrictions and prohibitions on candidates, officeholders, 
            and lobbyists. That initiative is commonly known as the PRA.  
            Amendments to the PRA by the Legislature must further the 
            purposes of the proposition and require a two-thirds vote of 
            each house of the Legislature, or the Legislature may propose 
            amendments to the proposition that do not further the purposes 
            of the act by a majority vote, but such amendments must be 
            approved by the voters to take effect.  

          Membership on a county central committee has been considered an 
            elective office under the PRA since the Proposition 9 was 
            adopted in 1974.  As a result, a strong argument could be made 
            that amending the PRA to exclude membership on a county 
            central committee from the definition of elective office does 
            not further the original purposes of the PRA.  As noted above, 







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            to the extent that this bill does not further the purposes of 
            the PRA, the Legislature has no authority to enact its 
            policies without submitting it to the voters.  In light of 
            that fact, this bill provides for its provisions to be 
            submitted to the voters at the next statewide election 
            occurring at least 131 days after the approval of this bill.

          However, to the extent that this bill is amended as suggested in 
            comment #4 of this analysis, a stronger case can be made that 
            the bill furthers the purposes of the PRA, since the bill 
            would significantly reduce burdensome reporting requirements 
            that result in little or no campaign activity being reported, 
            while ensuring that candidates for central committee who have 
            significant amounts of campaign activity will continue to file 
            campaign disclosure reports.  As a result, if this bill is 
            amended as suggested in comment #4, the committee may also 
            wish to amend it to provide that the bill will not be 
            submitted to the voters, but instead would be subject to a 
            two-thirds vote of each house of the Legislature.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Association of Clerks and Election Officials
          Robert W. Naylor, former Chairman, California Republican Party
          Michael Schroeder, former Chairman, California Republican Party
          Duf Sundheim, former Chairman, California Republican Party

           Opposition 
           
          None on file.
           
          Analysis Prepared by  :    Ethan Jones / E. & R. / (916) 319-2094