TO: Interested Parties
FROM: Kim Alexander, California Voter Foundation
DATE: June 3, 1997
RE: State Senate Online Disclosure Vote June 4, 10:30 a.m.Hi Folks:
The big day has almost arrived...on Wednesday, June 4 at 10:30 a.m. the California State Senate will take up SB 49/Karnette, which would make political disclosure records available on the Internet. Below is the Senate floor analysis, which provides an excellent description of the provisions of SB 49, along with an impressive list of supporters - so far, SB 49 has received no opposition.
I'll post the vote as soon as I can; and for those of you on this list who aren't following this legislation, please bear with us; there will be fewer postings once the Senate Floor vote is taken!
Kim Alexander, Executive Director, California Voter Foundation
cvf@netcom.com
916/325-2120BILL ANALYSIS
SENATE RULES COMMITTEE SB 49
Office of Senate Floor Analyses
1020 N Street, Suite 524
(916) 445-6614 Fax: (916) 327-4478
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THIRD READING
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Bill No: SB 49
Author: Karnette (D), et al
Amended: 5/20/97
Vote: 27 - Urgency
SENATE ELECTIONS & REAP. COMMITTEE: 3-0, 4/16/97 AYES: Karnette, Polanco, Rosenthal NOT VOTING: Craven, Lewis
SENATE APPROPRIATIONS COMMITTEE: 12-0, 5/29/97 AYES: Johnston, Alpert, Burton, Calderon, Johnson, Karnette, Kelley, Lee, Leslie, McPherson, Mountjoy, Vasconcellos
NOT VOTING: Dills
. SUBJECT: Political Reform Act: electronic filing
SOURCE: The author
DIGEST: This bill enacts the Election Filing Disclosure Act requiring the Secretary of State to develop a process whereby reports and statements required under the Political Reform Act can be filed electronically and viewed by the public, as specified.
ANALYSIS: Existing law, the Political Reform Act (PRA), requires that candidates, lobbyists, campaign committees and others file statements and reports documenting their activities. These reports and statements are filed at a variety of locations, but primarily with the Secretary of State, appropriate county clerks, and the Fair Political Practices Commission (FPPC). These filings must be personally signed by designated individuals (either the candidate, campaign treasurer, lobbyist or other individual, or a combination thereof).
AB 3575 (Speier, Chapter 1136, Statutes of 1994), required the Secretary of State to conduct a study on the feasibility of implementing a computerized system for the electronic filing of documents required by the PRA. That study, "Electronic Filing: A New Era in Campaign and Lobbying Financial Disclosure," was completed in December 1995. The advisory panel that conducted the study included representatives from the Secretary of State's office, the FPPC, county and city clerks and other elections officials, lobbyists, campaign treasurers, computer consultants and public interest groups.
The Secretary of State reports that more than 30,000 documents constituting over 500,000 pages will be filed in connection with the 1998 election cycle. Additionally, lobbying registrations and disclosure reports aggregate more than 30,000 documents and 80,000 pages during an average two year legislative session.
According to the National Resource Center for State & Local Campaign Finance Reform, during 1995-1996, two states, Hawaii and Missouri, mandated that campaign related documents be filed electronically. Seven other states had voluntary programs in place. Close to half of the states are studying the issue or have projects in development. San Francisco, New York, and Seattle already have or are in various stages of implementing electronic filing systems.
Five different pieces of legislation during the 1995-96 legislative session contained, at one time or another, provisions to implement an electronic filing system for specified campaign and lobbying documents. None of those bills became law.
This bill enacts the Online Disclosure Act of 1997. It directs the Secretary of State, in consultation with the FPPC, to develop and implement an online filing and disclosure system for specified documents mandated to be filed by the PRA.
This bill specifically requires the Secretary of State to:
1.Develop a system that provides for the online transfer and acceptance of data. The system must insure the integrity of the data and institute safeguards against efforts to tamper with or subvert the data. In developing the system, the Department of Information Technology must be consulted regarding implementing sufficient technology to prevent alteration or manipulation of the data. The system must be approved by the department before becoming operational.
2.Specify a non-proprietary, standardized record format or formats using industrywide standards for transmission of the data. Require the Secretary of State to hold public hearings prior to development of the record format as a means to ensure that affected entities have an opportunity to provide input into the development process. The format or formats are to be made public not later than September 1, 1999 to ensure sufficient time to comply with the requirements of this bill. The Secretary of State shall certify commercial vendors and private persons who develop software that complies with the standardized format and is compatible with the Secretary of State's system. Filers can only use software that has been certified.
3.Publish a list of all certified vendors and persons who have developed software that meets the above requirements, and designate those software programs that are available for $99 or less. If, by June 1, 2000, there is no certified software that complies with appropriate requirements, the Online Disclosure Act of 1997 is repealed.
4.Develop a procedure to enable filers to comply with existing requirements that reports be personally signed under penalty of perjury.
5.Make the electronically filed data available at no cost on the "largest non-proprietary, nonprofit, cooperative computer network", a.k.a., the Internet, in a format that is easily understood and provides the greatest public access. The data shall be made available free of charge, and as soon as possible after receipt. Data made available on the public computer network shall not contain the residential street address of any person.
6.Maintain the data on-line for a period of 10 years, and then archive it in a secure format. In addition, a secured, official version of all originally electronically filed statements and reports will be maintained for audit and other legal purposes once the system is operational.
7.Provide assistance to those seeking public access to the information.
This bill requires that all statewide candidates and ballot measures appearing on the November 1998 ballot, in addition to paper filings, to submit a copy of their reports on computer disk. The Secretary of State will provide copies of the computer disks at cost to the public. The Secretary of State must also disclose online all late contributions and late independent expenditures made in connection with the 1998 General Election.
This bill states that filers may voluntarily begin filing appropriate reports online once the Secretary of State publicly announces that all state-mandated development, procurement and oversight requirements have been met. There will be an online disclosure program in connection with the 2000 primary election with the following participants:
1.Candidates, committees, or other persons who cumulatively receive contributions or make expenditures (including loans) of $100,000 or more in an election cycle in connection with a state elective office or a state ballot measure.
2.General purpose and small contributor committees that cumulatively receive contributions or make expenditures totaling $100,00 or more to support or oppose candidates for any elective state office or state ballot measure.
3.Slate mailer organizations with cumulative reportable payments received or made of $100,000 or more.
4.Lobbyists, lobbyist employers, and lobbying firms who have reportable payments, expenses, contributions, or gifts of $100,000 or more in a calendar quarter.
5.The Secretary of State will be responsible for disclosing online all late contributions and late independent expenditures.
Starting July 1, 2000, online filing and disclosure of reports becomes mandatory for all candidates, committees, and lobbyists. The threshold for having to file is lowered to $50,000 in an election cycle for candidates, committees, and slate mailer organizations and $5,000 in a calendar quarter for lobbyists. In determining the threshold, all controlled committees and office holder accounts will be included.
This bill would require the Secretary of State, in addition to the filings listed above, to continue to disclose online all late contributions and late independent expenditures.
This bill specifies that any entity not mandated to file online may do so voluntarily. Once an entity, whether by mandate or choice, files required reports online, all subsequent reports must also be filed online.
Paper copies of documents would still be required. The paper copy will continue to be the official filing for audit and legal purposes until the Secretary of State publicly determines that the system is operating securely and effectively. In making that determination, the Secretary of State shall consult with the FPPC, the Department of Information Technology, and any other appropriate public or private entities they choose. Once that determination is made, the requirement to file paper forms with local filing officers would be repealed.
This bill requires the Secretary of State to report to the Legislature regarding the effectiveness of the online filing and disclosure system and related issues. One report is due before the system is operational and a second report after completion of the 2000 election cycle. The FPPC may present their suggestions and comments along with the reports.
This bill appropriates $1.1 million to develop the electronic filing system and other provisions of the bill.
A similar bill is SB 7 (Kopp), which failed passage in the Senate Elections and Reapportionment Committee.
FISCAL EFFECT: Appropriation: Yes Fiscal Com.: Yes Local: Yes
Appropriates $1.1 million.
SUPPORT: (Verified 5/30/97)
Secretary of State League of Women Voters American Association of Retired Persons (AARP) California Teachers Association California League of Conservation Voters Center for Civic Literacy Mexican American Legal Defense and Educational Fund (MALDEF) Californians for Political Reform California Newspaper Publishers Association Consumers Union California Association of Licensed Investigators Common Cause
ARGUMENTS IN SUPPORT: According to the author's office, providing easy public access to campaign and lobbying reports over the Internet is an idea whose time has arrived. For too long, California has relied on an antiquated system of paper filings that makes it difficult for the average person to find out who is giving money to their elected officials. This bill will bring California's campaign and lobbying reporting into the 21st century.
DLW:ctl 5/30/97 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END ****
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