NOTE:  As provided in LFC policy, this report is intended only for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used for other purposes.

 

The most recent FIR version (in HTML & Adobe PDF formats) is available on the Legislative Website.  The Adobe PDF version includes all attachments, whereas the HTML version does not.  Previously issued FIRs and attachments may be obtained from the LFC in Suite 101 of the State Capitol Building North.

 

F I S C A L   I M P A C T   R E P O R T

 

 

SPONSOR:

Feldman

 

DATE TYPED:

2/28/03

 

HB

 

 

SHORT TITLE:

Amend Campaign Reporting

 

SB

22/aSRC/aSFC

 

 

ANALYST:

Collard

 

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

 

 

 

$40.0

Recurring

General Fund

 

 

 

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

SOURCES OF INFORMATION

 

Responses Received From

Attorney General’s Office

Secretary of State

 

SUMMARY

 

     Synopsis of SFC Amendment

 

The Senate Finance Committee amends Senate Bill 22 by striking SRC amendment three.  This amendment lowers the threshold for requiring political committee reporting from $2,000 to $500 in expenditures.

 

     Synopsis of SRC Amendment

 

The Senate Rules Committee amends Senate Bill 22 by deleting the appropriation of $80,000 and the appropriation language.  The committee also amends the bill by changing the dollar limit of a person or organization expending funds in a calendar year to conduct an advertising campaign or for a political purpose from $500 to $2,000.  Finally, the committee amends the bill by making the effective date January 1, 2006.

 

     Synopsis of Original Bill

 

Senate Bill 22 appropriates $80.0 from the general fund to the Secretary of State for the purpose of designing and developing an electronic campaign reporting system.  This bill also amends the Campaign Reporting Act to require the mandatory filing by electronic means of reports of campaign contributions and expenditures with the Secretary of State, including county reports. 

 

     Significant Issues

 

The Attorney General’s office indicates the bill lowers the threshold for requiring political committee reporting from $2,000 to $500 in expenditures.

 

FISCAL IMPLICATIONS

 

The appropriation of $80.0 contained in this bill is a non-recurring expense to the general fund. Any unexpended or unencumbered balance remaining at the end of FY04 shall revert to the general fund.

 

If county campaign reports are required to be filed with the Secretary of State, the department indicates a need for one additional FTE at $40.0.

 

ADMINISTRATIVE IMPLICATIONS

 

The Secretary of State indicates that policies and procedures will have to be drafted for use of the new system.  Currently, the Secretary of State does not handle campaign reports from elected county officials, and the office has never received a request for a county campaign report, since this is handled by the county clerks.  If county reports will be filed with the Secretary of State, it will mean an increased workload, and the department indicates a need for one additional FTE.

 

TECHNICAL ISSUES

 

The Attorney General’s office comments that because the bill makes the Secretary of State the proper filing officer for all campaign reports by all public officials, the definition of “proper filing officer” in Section 1-19-26(O) seems inconsistent with the proposed amendments in Section 1-19-27(C).  The bill should be amended to include a definition of “electronic filing or reporting.”

 

OTHER SUBSTANTIVE ISSUES

 

The Secretary of State reports the bill should mandate electronic filing because less than 10 percent of reports are filed electronically now.  Mandating electronic filing will increase efficiency in the Secretary of State staff.

 

The Secretary of State also would like to exempt county campaign reporting from this bill and continue to file elective county campaign reports with the county clerks and not with the Secretary of State’s office.

 

POSSIBLE QUESTIONS

 

  1. If electronic filing is mandated to decrease staff workload, and county campaign reports are required which will increase the staff workload, will the overall workload remain stable?

 

KBC/prr:sb:njw