BILL NUMBER: SB 1458	CHAPTERED  09/18/04

	CHAPTER  591
	FILED WITH SECRETARY OF STATE  SEPTEMBER 18, 2004
	APPROVED BY GOVERNOR  SEPTEMBER 18, 2004
	PASSED THE SENATE  AUGUST 17, 2004
	PASSED THE ASSEMBLY  AUGUST 12, 2004
	AMENDED IN ASSEMBLY  JUNE 22, 2004
	AMENDED IN ASSEMBLY  JUNE 10, 2004

INTRODUCED BY   Senator Johnson
   (Coauthor:  Assembly Member Jerome Horton)

                        FEBRUARY 19, 2004

   An act to amend Sections 90004 and 91011 of the Government Code,
relating to the Political Reform Act of 1974.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1458, Johnson.  Political Reform Act of 1974.
   Under the Political Reform Act of 1974, the Franchise Tax Board is
required to audit a specified percentage of certain lobbying firms,
lobbyist employers, candidates, and committees regarding the campaign
statements and reports filed by those persons and entities with the
Secretary of State.  The Fair Political Practices Commission selects
by lot the persons and entities to be audited on a random basis.
   This bill would require that the board complete its report of any
audit conducted on a random basis within one year after the person or
entity subject to the audit is selected by the commission to be
audited.
   Under the act, a civil action alleging a violation by a candidate
for the Legislature or a superior court judge in a direct primary or
general election of the reporting requirements for campaign
statements and reports filed with the Secretary of State shall not be
filed more than 4 years after the board could begin an audit of the
candidate.
   This bill would prohibit the filing of a civil action of this kind
more than 4 years after the board could begin an audit of the
candidate, or more than one year after the board forwards its report
to the commission of a completed audit of any person or entity
alleged to have violated the requirements for campaign statements and
reports, whichever period is less.
   The Political Reform Act of 1974, an initiative measure, provides
that the Legislature may amend the act to further the act's purposes
with a 2/3 vote of each house and compliance with specified
procedural requirements.
   This bill, which would declare that it furthers the purposes of
the act, would therefore require a 2/3 vote.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 90004 of the Government Code is amended to
read:
   90004.  (a) The Franchise Tax Board shall periodically prepare
reports which, except as otherwise provided in this section, shall be
sent to the commission, the Secretary of State, and the Attorney
General.  If the reports relate to candidates for or committees
supporting or opposing candidates for the office of Attorney General,
the reports shall be sent to the commission, the Secretary of State,
and the District Attorneys of Los Angeles, Sacramento, and San
Francisco Counties.  If the reports relate to local candidates and
their controlled committees, the reports shall be sent to the
commission, the local filing officer with whom the candidate or
committee is required to file the originals of campaign reports
pursuant to Section 84215, and the district attorney for the
candidate's county of domicile.
   (b) The Franchise Tax Board shall complete its report of any audit
conducted on a random basis pursuant to Section 90001 within one
year after the person or entity subject to the audit is selected by
the commission to be audited.
   (c) The reports of the Franchise Tax Board shall be public
documents and shall contain in detail the Franchise Tax Board's
findings with respect to the accuracy and completeness of each report
and statement reviewed and its findings with respect to any report
or statement that should have been but was not filed.  The Secretary
of State and the local filing officer shall place the audit reports
in the appropriate campaign statement or lobbying files.
  SEC. 2.  Section 91011 of the Government Code is amended to read:
   91011.  (a) No civil action alleging a violation in connection
with a report or statement required by Chapter 4 (commencing with
Section 84100) shall be filed more than four years after an audit
could begin as set forth in subdivision (c) of Section 90002, or more
than one year after the Franchise Tax Board forwards its report to
the commission, pursuant to Section 90004, of any audit conducted of
the alleged violator, whichever period is less.
   (b) No civil action alleging a violation of any provisions of this
title, other than those described in subdivision (a), shall be filed
more than four years after the date the violation occurred.
  SEC. 3.  The Legislature finds and declares that the provisions of
this act further the purposes of the Political Reform Act of 1974
within the meaning of subdivision (a) of Section 81012 of the
Government Code.