Title of Regulation: 1VAC20-90. Campaign Finance and Political Advertisements (adding 1VAC20-90-10, 1VAC20-90-20).

Statutory Authority: § 24.2-103 of the Code of Virginia.

Public Hearing Information: No public hearings are scheduled.

Public Comment Deadline: December 5, 2012.

Effective Date: December 20, 2012.

Agency Contact: David Blackwood, Policy Analyst, State Board of Elections, 1100 Bank Street, 1st Floor, Washington Building, Richmond, VA 23219, telephone (804) 864-8930, or email david.blackwood@sbe.virginia.gov.

Basis: Item 79(D) of the 2010-2012 budget bill (Chapter 874 of the 2010 Acts of Asembly) requires the State Board of Elections to provide for an administrative fee up to $25 for each nonelectronic report filed with the board under § 24.2-947.5 of the Code of Virginia. The regulation shall also provide for a waiver of the fee based upon indigence.

Purpose: The goal of this action is to give effect to the language in Item 79(d) of the 2010-2012 budget bill. This item encourages the use of the State Board of Elections' electronic filing system for candidates, committees, and political action committees (PACs). Increased staff time is necessary to process paper-filed reports that causes distraction and delays in completing other tasks. The regulation also reflects the Governor's budget reduction strategies in this manner. The goal is to increase the use of the electronic campaign filing software to promote efficiency.

Rationale for Using Fast-Track Process: The General Assembly approved the promulgation of this regulation in the budget bill using the exact verbiage proposed. Furthermore, an "opt-out" clause has been built in for those proving indigence who still wish to file on paper. Fast-track approval is requested because the proposal is noncontroversial, the continuous nature of the campaign finance filing system, and the desire to have the policy implemented quickly.

Substance: The new provision requires any campaign committee that files a nonelectronic, campaign finance report with the State Board of Elections under § 24.2-947.5 of the Code of Virginia to pay a $25 administrative fee per report to the State Board of Elections. The payment is due by the filing deadline for the report or upon filing the report, whichever is later. Any committee that is indigent may request a waiver from the State Board of Elections.

Issues: The advantages to this action are that (i) candidates, committees, and PAC's will be encouraged to file electronically, helping to eliminate human error in processing forms; (ii) reports will be uploaded easier and earlier for public inspection; and (iii) staff efficiency will be increased.

There are no disadvantages to the public or Commonwealth.

Department of Planning and Budget's Economic Impact Analysis:

Summary of the Proposed Amendments to Regulation. Item 79(D) of the 2010-2012 budget bill (Chapter 874) contains the following language: "The State Board of Elections shall by regulation provide for an administrative fee up to $25 for each non-electronic report filed with the Board under § 24.2-947.5. The regulation shall provide for waiver of the fee based upon indigence." The State Board of Elections (Board) proposes to add this language to these regulations.

Result of Analysis. The benefits likely exceed the costs for all proposed changes.

Estimated Economic Impact. Since the Board is simply adding language to these regulations which is already in statute, the proposal will have no impact beyond proving clarity for the public.

Businesses and Entities Affected. Political committees that file paper campaign finance reports with the Board were affected by the legislation. According to the Board there are approximately 70 such committees.

Localities Particularly Affected. No locality is disproportional affected.

Projected Impact on Employment. The proposed amendments are unlikely to significantly affect employment.

Effects on the Use and Value of Private Property. The proposed amendments are unlikely to significantly affect the use and value of private property.

Small Businesses: Costs and Other Effects. The proposed amendments do not significantly affect small businesses.

Small Businesses: Alternative Method that Minimizes Adverse Impact. The proposed amendments do not significantly affect small businesses.

Real Estate Development Costs. The proposed amendments do not significantly affect real estate development costs.

Legal Mandate. The Department of Planning and Budget (DPB) has analyzed the economic impact of this proposed regulation in accordance with § 2.2-4007.04 of the Administrative Process Act and Executive Order Number 14 (10). Section 2.2-4007.04 requires that such economic impact analyses include, but need not be limited to, the projected number of businesses or other entities to whom the regulation would apply, the identity of any localities and types of businesses or other entities particularly affected, the projected number of persons and employment positions to be affected, the projected costs to affected businesses or entities to implement or comply with the regulation, and the impact on the use and value of private property. Further, if the proposed regulation has adverse effect on small businesses, § 2.2-4007.04 requires that such economic impact analyses include (i) an identification and estimate of the number of small businesses subject to the regulation; (ii) the projected reporting, recordkeeping, and other administrative costs required for small businesses to comply with the regulation, including the type of professional skills necessary for preparing required reports and other documents; (iii) a statement of the probable effect of the regulation on affected small businesses; and (iv) a description of any less intrusive or less costly alternative methods of achieving the purpose of the regulation. The analysis presented above represents DPB's best estimate of these economic impacts.

Agency's Response to Economic Impact Analysis: The agency concurs with the analysis of the Department of Planning and Budget.

Summary:

Item 79(D) of the 2010-2012 budget bill (Chapter 874 of the 2010 Acts of Assembly) requires the State Board of Elections to promulgate regulations to provide for an administrative fee up to $25 for each nonelectronic report filed with the board. The regulation shall provide for a waiver of the fee based upon indigence. This regulation is intended to encourage people to file electronically and also to assist with the Governor's budget reduction strategies.

CHAPTER 90
CAMPAIGN FINANCE AND POLITICAL ADVERTISEMENTS

1VAC20-90-10. Definitions. (Reserved)

1VAC20-90-20. Filing fee.

Any campaign committee that files a nonelectronic, campaign finance report with the State Board of Elections under § 24.2-947.5 of the Code of Virginia shall pay a $25 administrative fee per report to the State Board of Elections. Such payment shall be due by the filing deadline for the report or upon filing the report, whichever is later. Any committee that is indigent may request a waiver from the State Board of Elections.