Amended in Assembly June 21, 2016

Amended in Senate April 18, 2016

Amended in Senate March 28, 2016

Senate BillNo. 1349


Introduced by Senator Hertzberg

(Principal coauthor: Assembly Member Mullin)

(Coauthors: Senators Allenbegin delete and Batesend deletebegin insert Bates, and Wieckowskiend insert)

(Coauthors: Assembly Members Brough,begin insert Dababneh,end insert Dodd,begin insert Eggman, Gallagher, Cristina Garcia, Lackey,end insert and Olsen)

February 19, 2016


An act to amend Sections 84601 and 84602 of the Government Code, relating to the Political Reform Act of 1974.

LEGISLATIVE COUNSEL’S DIGEST

SB 1349, as amended, Hertzberg. Political Reform Act of 1974: Secretary of State: online filing and disclosure system.

The Political Reform Act of 1974 generally requires elected officials, candidates for elective office, and committees formed primarily to support or oppose a candidate for public office or a ballot measure, along with other entities, to file periodic campaign statements. The act requires that these campaign statements contain prescribed information related to campaign contributions and expenditures of the filing entities. Existing law, the Online Disclosure Act, requires the Secretary of State, in consultation with the Fair Political Practices Commission, to develop online and electronic filing processes for use by these persons and entities.

This bill, in addition, would require the Secretary of State, in consultation with the Commission, to develop and certify for public use an online filing and disclosure system for campaign statements and reports that provides public disclosure of campaign finance and lobbying information in a user-friendly, easily understandable format.

The Political Reform Act of 1974, an initiative measure, provides that the Legislature may amend the act to further the act’s purposes upon a 23 vote of each house and compliance with specified procedural requirements.

This bill would declare that it furthers the purposes of the act.

Vote: 23. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 84601 of the Government Code is
2amended to read:

3

84601.  

The Legislature finds and declares as follows:

4(a) The people of California enacted one of the nation’s most
5comprehensive campaign and lobbying financial disclosure laws
6when they voted for Proposition 9, the Political Reform Act of
71974, an initiative statute.

8(b) Public access to campaign and lobbying disclosure
9information is a vital and integral component of a fully informed
10electorate.

11(c) Advances in technology have made it necessary for the State
12of California to develop a new, data-driven online filing and
13disclosure system that provides public disclosure of campaign
14finance and lobbying information in a user-friendly, easily
15understandable format.

16(d) Members of the public, including voters, journalists, and
17researchers, should be able to access campaign finance and
18lobbying information in a robust and flexible manner, including
19through searches and visual displays such as graphs and maps.

20

SEC. 2.  

Section 84602 of the Government Code is amended
21to read:

22

84602.  

(a) To implement the Legislature’s intent, the Secretary
23of State, in consultation with the Commission, notwithstanding
24any other provision of this code, shall do all of the following:

25(1) Develop online and electronic filing processes for use by
26persons and entities specified in Section 84605 that are required
27to file statements and reports with the Secretary of State’s office
P3    1pursuant to Chapter 4 (commencing with Section 84100) and
2Chapter 6 (commencing with Section 86100). Those processes
3shall each enable a user to comply with all the disclosure
4requirements of this title and shall include, at a minimum, both of
5the following:

6(A) A means or method whereby filers subject to this chapter
7may submit required filings free of charge. Any means or method
8developed pursuant to this subparagraph shall not provide any
9additional or enhanced functions or services that exceed the
10minimum requirements necessary to fulfill the disclosure provisions
11of this title. At least one means or method shall be made available
12no later than December 31, 2002.

13(B) The definition of a nonproprietary standardized record
14format or formats using industry standards for the transmission of
15the data that is required of those persons and entities specifiedbegin insert inend insert
16 Section 84605 and that conforms with the disclosure requirements
17of this title. The Secretary of State shall hold public hearings before
18development of the record format or formats as a means to ensure
19that affected entities have an opportunity to provide input into the
20development process. The format or formats shall be made public
21no later than July 1, 1999, to ensure sufficient time to comply with
22this chapter.

23(2) Accept test files from software vendors and others wishing
24to file reports electronically, for the purpose of determining whether
25the file format is in compliance with the standardized record format
26developed pursuant to paragraph (1) and is compatible with the
27Secretary of State’s system for receiving the data. A list of the
28software and service providers who have submitted acceptable test
29files shall be published by the Secretary of State and made available
30to the public. Acceptably formatted files shall be submitted by a
31filer in order to meet the requirements of this chapter.

32(3) Develop a system that provides for the online or electronic
33transfer of the data specified in this section using
34telecommunications technology thatbegin delete assuresend deletebegin insert ensuresend insert the integrity
35of the data transmitted and that creates safeguards against efforts
36to tamper with or subvert the data.

37(4) Make all the data filed available on the Internet in an easily
38understood format that provides the greatest public access. The
39data shall be made available free of charge and as soon as possible
40after receipt. All late contribution and late independent expenditure
P4    1reports, as defined by Sections 84203 and 84204, respectively,
2shall be made available on the Internet within 24 hours of receipt.
3The data made available on the Internet shall not contain the street
4name and building number of the persons or entity representatives
5listed on the electronically filed forms or any bank account number
6required to be disclosed pursuant to this title.

7(5) Develop a procedure for filers to comply with the
8requirement that they sign under penalty of perjury pursuant to
9Section 81004.

10(6) Maintain all filed data online for 10 years after the date it is
11filed, and then archive the information in a secure format.

12(7) Provide assistance to those seeking public access to the
13information.

14(8) Implement sufficient technology to seek to prevent
15unauthorized alteration or manipulation of the data.

16(9) Provide the Commission with necessary information to
17enable it to assist agencies, public officials, and others with the
18compliance with, and administration of, this title.

19(10) Report to the Legislature on the implementation and
20development of the online and electronic filing and disclosure
21requirements of this chapter. The report shall include an
22examination of system security, private security issues, software
23availability, compliance costs to filers, use of the filing system and
24software provided by the Secretary of State, and other issues
25relating to this chapter, and shall recommend appropriate changes
26if necessary. In preparing the report, the Commission may present
27to the Secretary of State and the Legislature its comments regarding
28this chapter as it relates to the duties of the Commission and
29suggest appropriate changes if necessary. There shall be one report
30due before the system is operational as set forth in Section 84603,
31one report due no later than June 1, 2002, and one report due no
32later than January 31, 2003.

33(11) Review the current filing and disclosure requirements of
34this chapter and report to the Legislature, no later than June 1,
352005, recommendations on revising these requirements so as to
36promote greater reliance on electronic and online submissions.

37(b) (1) To implement the Legislature’s intent, as described in
38Section 84601, the Secretary of State, in consultation with the
39Commission, shall develop an online filing and disclosure system
40for use by persons and entities specified in Section 84605 that are
P5    1required to file statements and reports with the Secretary of State’s
2office pursuant to Chapter 4 (commencing with Section 84100)
3and Chapter 6 (commencing with Section 86100). The system shall
4enable a user to comply with all of the disclosure requirements of
5this title and shall include, at minimum, all of the following:

6(A) A data-driven means or method that allows filers subject
7to this chapter to submit required filings free of charge in a manner
8that facilitates public searches of the data and does all of the
9following:

10(i) Enables a filer to comply with all of the disclosure
11requirements of this title, including by entering or uploading
12requisite data or by indicating that the filer had no reportable
13activity during a particular reporting period.

14(ii) Retains previously submitted data so that a filer can access
15that data to amend disclosures or prepare future disclosures.

16(iii) Ensures the security of data entered and stored in the system.

17(iv) To the extent feasible, is compatible with potential future
18capability to accept statements from filers specified in subdivisions
19(b) to (e), inclusive, of Section 84215.

20(B) The definition of a nonproprietary standardized record
21format or formats using industry standards for the transmission of
22the data that is required of those persons and entities specified in
23Section 84605 and that conforms with the disclosure requirements
24of this title.

25(2) The Secretary of State shall do all of the following with
26respect to the online filing and disclosure system developed
27pursuant to this subdivision:

28(A) Accept test files from software vendors and others wishing
29to file reports electronically for the purpose of determining whether
30the file format is in compliance with the standardized record format
31developed pursuant to this subdivision and is compatible with the
32Secretary of State’s system for receiving the data. The Secretary
33of State shall publish and make available to the public a list of the
34software and service providers who have submitted acceptable test
35files. A filer shall submit acceptably formatted files in order to
36meet the requirements of this chapter.

37(B) Make the data filed available on the Internet as follows:

38(i) In a user-friendly, easily understandable format that provides
39the greatest public access, including online searches and
P6    1machine-readable downloads of all data contained in the system,
2except as specified in clause (iii).

3(ii) Free of charge and as soon as possible after receipt, or, in
4the case of late contribution, late in-kind contribution, and late
5independent expenditure reports, as defined by Sections 84203,
684203.3, and 84204, respectively, within 24 hours of receipt.

7(iii) Not containing the street name or building number of the
8persons or entity representatives listed on the electronically filed
9forms or any bank account number required to be disclosed
10pursuant to this title.

11(iv) In a manner that allows the public to track and aggregate
12contributions from the same contributor across filers using a
13permanent unique identifier assigned by the Secretary of State for
14this purpose. The Secretary of State shall assign this identifier to,
15at minimum, each contributor who makes contributions totaling
16ten thousand dollars ($10,000) or more in a calendar year to, or at
17the behest of, candidates or committees that file electronically with
18the Secretary of State pursuant to subdivision (a) of Section 84215
19or whobegin delete is registeredend deletebegin insert filesend insert with the Secretary of State as a major
20donor committee under subdivision (c) of Section 82013.

21(C) Develop a procedure for filers to comply electronically with
22the requirement to sign under penalty of perjury pursuant to Section
2381004. The electronic signature procedure shall allow the filer to
24file with the Secretary of State and shall not require an original
25signature to be filed.

26(D) Maintain all filed data online for at leastbegin delete 10end deletebegin insert 20end insert years after
27the date it is filed, and then archive the information in a secure
28format.

29(E) Provide assistance to those seeking public access to the
30information.

31(F) Implement sufficient technology to seek to prevent
32unauthorized alteration or manipulation of the data.

33(G) Provide the Commission with necessary information to
34enable it to assist agencies, public officials, and others in complying
35with and administering this title.

36(3) The Secretary of State shall do all of the following with
37respect to developing the online filing and disclosure system and
38record format pursuant to this subdivision:

39(A) Consult with the Assembly Committee on Elections and
40Redistricting, the Senate Committee on Elections and
P7    1Constitutional Amendments, the Commission, users, filers, and
2other stakeholders, as appropriate, about functions of the online
3filing and disclosure system.

4(B) In consultation with the Commission, and no later than July
531, 2017, hold at least one public hearing to receive input about
6developing the online filing and disclosure system and record
7format.

8(C) No later than December 31, 2017, submit a report to the
9Assembly Committee on Elections and Redistricting and the Senate
10Committee on Elections and Constitutional Amendments that
11includes a plan for the online filing and disclosure system,
12describes how members of the public will be able to query and
13retrieve data from the system, and includes a plan for integrating
14statements as specified in clause (iv) of subparagraph (A) of
15paragraph (1).

16(4) The Secretary of State shall make the online filing and
17disclosure system developed pursuant to this subdivision available
18for use no later than February 1, 2019. The Secretary of State may
19extend this date to a date no later than December 31, 2019, after
20consulting with the Assembly Committee on Elections and
21Redistricting and the Senate Committee on Elections and
22Constitutional Amendments and providing to those committees a
23report that explains the need for the extension and includes a plan
24for completion.

25(5) The Secretary of State may accept any funds, services,
26begin delete equipmentend deletebegin insert equipment,end insert or grants to further this subdivision, provided
27that the Secretary of State shall notify the Assembly Committee
28on Elections and Redistricting and the Senate Committee on
29Elections and Constitutional Amendments upon accepting any
30amount valued at one hundred thousand dollars ($100,000) or
31more.

32(6) Because the provisions of this chapter need to be
33implemented as expeditiously as possible, the information
34technology procurement requirements described in Chapter 5.6
35(commencing with Section 11545) of Part 1 of Division 3 of Title
36begin delete 2,end deletebegin insert 2 of this Code,end insert and in Section 12100 of the Public Contract
37Code, do not apply to development of the online filing and
38disclosure system pursuant to this subdivision. The Secretary of
39State shall consult with the Department of Technology, as
40appropriate, in developing the online filing and disclosurebegin delete system.end delete
P8    1
begin insert system, in order to maximize project success, minimize lifecycle
2costs, and ensure the security of the system and its data.end insert

3(7) (A) Before making the system developed pursuant to this
4subdivision available for public use, the Secretary of State, in
5consultation with the Commission, shall test the system to ensure
6its functionality and then certify that the system meets all the
7requirements of this subdivision. The Secretary of State may
8consult with the Department of Technology as needed to fulfill
9his or her duties under this paragraph.

10(B) After the system developed pursuant to this subdivision is
11certified, the system described in subdivision (a) shall no longer
12accept reports and filings, unless otherwise directed by the
13Secretary of State and the Commission. The system described in
14subdivision (a) shall continue to allow public access to past
15disclosures unless the Secretary of State migrates that data into
16the system described in this subdivision.

begin insert

17
(c)  On or before December 31, 2017, and on or before every
18April 15, July 15, October 15, and January 15 thereafter, the
19Secretary of State shall submit to the chairs of the Joint Legislative
20Budget Committee and the fiscal committees of the Legislature a
21quarterly report on the progress of the Cal-Access Project.
22Specifically, the Secretary of State shall certify whether he or she
23(1) anticipates making or has made any changes to the project’s
24scope, schedule, or budget and (2) considers any problems to be
25a risk to the project’s completion according to the approved project
26schedule and budget. This reporting requirement shall end upon
27the completion or termination of the Cal-Access Project.

end insert
28

SEC. 3.  

The Legislature finds and declares that this bill furthers
29the purposes of the Political Reform Act of 1974 within the
30meaning of subdivision (a) of Section 81012 of the Government
31Code.



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