BILL NUMBER: AB 1755 CHAPTERED 09/06/05 CHAPTER 200 FILED WITH SECRETARY OF STATE SEPTEMBER 6, 2005 APPROVED BY GOVERNOR SEPTEMBER 6, 2005 PASSED THE ASSEMBLY AUGUST 18, 2005 PASSED THE SENATE AUGUST 15, 2005 AMENDED IN SENATE JUNE 21, 2005 INTRODUCED BY Committee on Elections and Redistricting (Umberg (Chair), Klehs, Leno, and Levine) MARCH 15, 2005 An act to amend Sections 82048.7, 84203, 84204, 87205, and 87500 of, and to repeal Sections 84200.3 and 84200.4 of, the Government Code, relating to the Political Reform Act of 1974. LEGISLATIVE COUNSEL'S DIGEST AB 1755, Committee on Elections and Redistricting Political Reform Act of 1974. Existing provisions of the Political Reform Act of 1974 define a "sponsored committee" for purposes of the act. This bill would make a nonsubstantive change to that definition. Existing provisions of the act require financial reports in connection with campaigns, including provisions requiring certain committees to file these reports in odd-numbered years prior to a March primary according to specified schedules. Existing law has moved the March primary date to the first Tuesday following the first Monday in June. This bill would repeal specified provisions of the act that address reporting requirements relating to the former March primary date. Existing provisions of the act require a candidate or committee that makes or receives a late contribution, or a committee that makes a late independent expenditure, to report the contribution or expenditure by specified means. In addition, provisions of the act require certain of these types of contributions and expenditures to be reported online, and provide that those expenditures and contributions that are required to be reported online need not also be reported by the alternative means in the act. This bill would clarify that the alternative reports are not required for a candidate or committee that has disclosed the expenditures and contributions online. Existing law requires holders of specified public offices to file disclosures of investments, real property interests, and income within specified periods of assuming or leaving office. The act provides that a holder of one of these offices who completes a term of an office within 30 days of beginning a term of the same office or another of these specified offices of the same jurisdiction is not deemed to assume office or leave office. This bill would provide instead that a holder of one of these offices who completes a term of an office within 45 days of beginning a term of the same office or another of these specified offices of the same jurisdiction is not deemed to assume office or leave office. Existing provisions of the act require statements of economic interest to be filed by certain public officers, employees, and candidates for office, and specify with whom the statements must be filed according to the employing agency or office of the officer, employee, or candidate. The act requires city treasurers to file these statements. This bill would provide that candidates for city treasurer must also file these statements. Existing law makes a violation of the act subject to administrative, civil, and criminal penalties. This bill would impose a state-mandated local program by imposing potential criminal penalties on candidates for city treasurer who fail to file statements of economic interests as required by the bill, and by requiring city clerks to copy, forward, and file the copies of, the original statements. Existing law requires candidates for judge to file statements of economic interest with the clerk of the court, as do judges and court commissioners. This bill would provide that candidates for judge shall instead file those statements with the person with whom the candidate's declaration of candidacy is filed. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason. With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above. 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 82048.7 of the Government Code is amended to read: 82048.7. (a) "Sponsored committee" means a committee, other than a candidate controlled committee, which has one or more sponsors. Any person, except a candidate or other individual, may sponsor a committee. (b) A person sponsors a committee if any of the following apply: (1) The committee receives 80 percent or more of its contributions from the person or its members, officers, employees, or shareholders. (2) The person collects contributions for the committee by use of payroll deductions or dues from its members, officers, or employees. (3) The person, alone or in combination with other organizations, provides all or nearly all of the administrative services for the committee. (4) The person, alone or in combination with other organizations, sets the policies for soliciting contributions or making expenditures of committee funds. SEC. 2. Section 84200.3 of the Government Code is repealed. SEC. 3. Section 84200.4 of the Government Code is repealed. SEC. 4. Section 84203 of the Government Code is amended to read: 84203. (a) Each candidate or committee that makes or receives a late contribution, as defined in Section 82036, shall report the late contribution to each office with which the candidate or committee is required to file its next campaign statement pursuant to Section 84215. The candidate or committee that makes the late contribution shall report his or her full name and street address and the full name and street address of the person to whom the late contribution has been made, the office sought if the recipient is a candidate, or the ballot measure number or letter if the recipient is a committee primarily formed to support or oppose a ballot measure, and the date and amount of the late contribution. The recipient of the late contribution shall report his or her full name and street address, the date and amount of the late contribution, and whether the contribution was made in the form of a loan. The recipient shall also report the full name of the contributor, his or her street address, occupation, and the name of his or her employer, or if self-employed, the name of the business. (b) A late contribution shall be reported by facsimile transmission, guaranteed overnight delivery, or personal delivery within 24 hours of the time it is made in the case of the candidate or committee that makes the contribution and within 24 hours of the time it is received in the case of the recipient. A late contribution shall be reported on subsequent campaign statements without regard to reports filed pursuant to this section. (c) A late contribution need not be reported nor shall it be deemed accepted if it is not cashed, negotiated, or deposited and is returned to the contributor within 24 hours of its receipt. (d) A report filed pursuant to this section shall be in addition to any other campaign statement required to be filed by this chapter. (e) The report required pursuant to this section is not required to be filed by a candidate or committee that has disclosed the late contribution pursuant to subdivision (a) or (b) of Section 85309. SEC. 5. Section 84204 of the Government Code is amended to read: 84204. (a) A committee that makes a late independent expenditure, as defined in Section 82036.5, shall report the late independent expenditure by facsimile transmission, guaranteed overnight delivery, or personal delivery within 24 hours of the time it is made. A late independent expenditure shall be reported on subsequent campaign statements without regard to reports filed pursuant to this section. (b) A committee that makes a late independent expenditure shall report its full name and street address, as well as the name, office, and district of the candidate if the report is related to a candidate, or if the report is related to a measure, the number or letter of the measure, the jurisdiction in which the measure is to be voted upon, and the amount and the date, as well as a description of goods or services for which the late independent expenditure was made. In addition to the information required by this subdivision, a committee that makes a late independent expenditure shall include with its late independent expenditure report the information required by paragraphs (1) to (5), inclusive, of subdivision (f) of Section 84211, covering the period from the day after the closing date of the last campaign report filed to the date of the late independent expenditure, or if the committee has not previously filed a campaign statement, covering the period from the previous January 1 to the date of the late independent expenditure. No information required by paragraphs (1) to (5), inclusive, of subdivision (f) of Section 84211, that is required to be reported with a late independent expenditure report by this subdivision, is required to be reported on more than one late independent expenditure report. (c) A committee that makes a late independent expenditure shall file a late independent expenditure report in the places where it would be required to file campaign statements under this article as if it were formed or existing primarily to support or oppose the candidate or measure for or against which it is making the late independent expenditure. (d) A report filed pursuant to this section shall be in addition to any other campaign statement required to be filed by this article. (e) Expenditures that have been disclosed by candidates and committees pursuant to Section 85500 are not required to be disclosed pursuant to this section. SEC. 6. Section 87205 of the Government Code is amended to read: 87205. A person who completes a term of an office specified in Section 87200 and within 45 days begins a term of the same office or another such office of the same jurisdiction is deemed not to assume office or leave office. SEC. 7. Section 87500 of the Government Code is amended to read: 87500. Statements of economic interests required by this chapter shall be filed as follows: (a) Statewide elected officer-one original with the agency which shall make and retain a copy and forward a copy to the Secretary of State and the original to the commission, which shall retain the original and send one copy to the Registrar-Recorder of Los Angeles County and one copy to the Clerk of the City and County of San Francisco. The commission shall be the filing officer. (b) Candidates for statewide elective office-one original and one copy with the person with whom the candidate's declaration of candidacy is filed, who shall forward the copy to the Secretary of State and the original to the commission which shall retain the original and send one copy to the Registrar-Recorder of Los Angeles County and one copy to the Clerk of the City and County of San Francisco. The commission shall be the filing officer. (c) Members of the Legislature and Board of Equalization-one original with the agency which shall make and retain a copy and forward a copy to the Secretary of State and the original to the commission, which shall retain the original and send one copy to the clerk of the county which contains the largest percentage of registered voters in the election district which the officeholder represents, and one copy to the clerk of the county in which the officeholder resides. No more than one copy of each statement need be filed with the clerk of any one county. The commission shall be the filing officer. (d) Candidates for the Legislature or the Board of Equalization-one original and one copy with the person with whom the candidate's declaration of candidacy is filed, who shall forward the copy to the Secretary of State and the original to the commission which shall retain the original and send one copy to the clerk of the county which contains the largest percentage of registered voters in the election district in which the candidate seeks nomination or election, and one copy to the clerk of the county in which the candidate resides. No more than one copy of each statement need be filed with the clerk of any one county. The commission shall be the filing officer. (e) Persons holding the office of chief administrative officer and candidates for and persons holding the office of district attorney, county counsel, county treasurer, and member of the board of supervisors-one original with the county clerk who shall make and retain a copy and forward the original to the commission which shall be the filing officer. (f) Persons holding the office of city manager or, if there is no city manager, the chief administrative officer, and candidates for and persons holding the office of city council member, city treasurer, city attorney, and mayor -one original with the city clerk who shall make and retain a copy and forward the original to the commission which shall be the filing officer. (g) Members of the Public Utilities Commission, members of the State Energy Resources Conservation and Development Commission, planning commissioners, and members of the California Coastal Commission-one original with the agency which shall make and retain a copy and forward the original to the commission which shall be the filing officer. (h) Members of the Fair Political Practices Commission-one original with the commission which shall make and retain a copy and forward the original to the office of the Attorney General which shall be the filing officer. (i) Judges and court commissioners-one original with the clerk of the court who shall make and retain a copy and forward the original to the commission which shall be the filing officer. Original statements of candidates for the office of judge shall be filed with the person with whom the candidate's declaration of candidacy is filed, who shall retain a copy and forward the original to the commission, which shall be the filing officer. (j) Except as provided for in subdivision (k), heads of agencies, members of boards or commissions not under a department of state government or members of boards or commissions not under the jurisdiction of a local legislative body-one original with the agency, which shall make and retain a copy and forward the original to the code reviewing body which shall be the filing officer. In its discretion, the code reviewing body may provide that the original be filed directly with the code reviewing body and that no copy be retained by the agency. (k) Heads of local government agencies and members of local government boards or commissions, for which the Fair Political Practices Commission is the code reviewing body, one original to the agency or board or commission which shall be the filing officer, unless at its discretion the Fair Political Practices Commission elects to act as the filing officer. In this instance, the original shall be filed with the agency, board, or commission, which shall make and retain a copy and forward the original to the Fair Political Practices Commission. (l) Designated employees of the Legislature-one original with the house of the Legislature by which the designated employee is employed. In its discretion, each house of the Legislature may provide that the originals of statements filed by its designated employees be filed directly with the commission, and that no copies be retained by that house. (m) Designated employees under contract to more than one joint powers insurance agency and who elect to file a multiagency statement pursuant to Section 87350, the original of the statement with the commission which shall be the filing officer, and a statement with each agency with which they are under contract, declaring that their statement of economic interests is on file with the commission and available upon request. (n) Members of a state licensing or regulatory board, bureau, or commission-one original with the agency, which shall make and retain a copy and forward the original to the commission, which shall be the filing officer. (o) Persons not mentioned above-one original with the agency or with the code reviewing body, as provided by the code reviewing body in the agency's conflict of interest code. SEC. 8. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution for certain costs that may be incurred by a local agency or school district because, in that regard, this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution. However, if the Commission on State Mandates determines that this act contains other costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code. SEC. 9. 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.