BILL NUMBER: AB 583 CHAPTERED
BILL TEXT
CHAPTER 735
FILED WITH SECRETARY OF STATE SEPTEMBER 30, 2008
APPROVED BY GOVERNOR SEPTEMBER 30, 2008
PASSED THE SENATE AUGUST 29, 2008
PASSED THE ASSEMBLY AUGUST 30, 2008
AMENDED IN SENATE AUGUST 22, 2008
AMENDED IN SENATE AUGUST 19, 2008
AMENDED IN SENATE AUGUST 12, 2008
AMENDED IN SENATE AUGUST 4, 2008
AMENDED IN SENATE JUNE 26, 2008
AMENDED IN SENATE JUNE 11, 2008
AMENDED IN ASSEMBLY JUNE 4, 2007
INTRODUCED BY Assembly Member Hancock
(Coauthors: Assembly Members Beall, Berg, Brownley, DeSaulnier,
Eng, Evans, Hayashi, Huffman, Jones, Laird, Leno, Lieu, Ma, Mullin,
Price, Saldana, Swanson, Torrico, and Wolk)
(Coauthors: Senators Corbett, Kuehl, Migden, Oropeza, Perata, and
Yee)
FEBRUARY 21, 2007
An act to add Chapter 7 (commencing with Section 20600) to
Division 20 of the Elections Code, to add and repeal Chapter 12
(commencing with Section 91015) of Title 9 of, and to repeal Sections
85300 and 86102 of, the Government Code, and to add and repeal
Article 8.6 (commencing with Section 18798) of Chapter 3 of Part 10.2
of Division 2 of the Revenue and Taxation Code, relating to the
Political Reform Act of 1974.
LEGISLATIVE COUNSEL'S DIGEST
AB 583, Hancock. Political Reform Act of 1974: California Fair
Elections Act of 2008.
(1) Under the Political Reform Act of 1974 a public officer is
prohibited from expending or accepting any public moneys for the
purpose of seeking elective office.
This bill would repeal that prohibition and would enact the
California Fair Elections Act of 2008, which would authorize eligible
candidates for Secretary of State to obtain public funds according
to specified procedures and requirements, provided that certain
thresholds are attained. The bill would impose primary responsibility
for the administration of the provisions of the bill on the Fair
Political Practices Commission. This bill would create the Fair
Elections Fund and, commencing January 1, 2011, would transfer funds
from the Fair Elections Fund to the Fair Political Practices
Commission for the purpose of the public financing provisions of the
act. The bill would also establish nonrefundable fees to be imposed
on lobbyists, lobbying firms, and lobbyist employers. The fees
collected are to be deposited, in part, in the Fair Elections Fund.
The bill would make funding for the administrative and enforcement
costs of the act available from the Fair Elections Fund. The bill
would require that the available funds, for each 4-year election
cycle, would be no more than 10% of the total amount deposited in the
Fair Elections Fund during the 4-year election cycle. The bill would
repeal specified provisions on January 1, 2019.
(2) Existing law, relating to the administration of personal
income taxes, authorizes individual taxpayers to contribute amounts
in excess of their tax liability for the support of specified funds
or accounts.
This bill would additionally allow taxpayers to designate on their
tax returns that a specified amount in excess of their tax liability
be transferred to the Voters Fair Elections Fund, which would be
created by this bill. The bill would provide that all moneys
contributed to the fund pursuant to these provisions, upon
appropriation by the Legislature, be allocated to the Franchise Tax
Board and the Controller for reimbursement of costs and to the Fair
Political Practices Commission, as specified.
The bill would provide that these voluntary contribution
provisions are repealed on either January 1 of the 5th taxable year
following the taxable year the fund first appears on the personal
income tax return, or on January 1 of an earlier calendar year, if
the Franchise Tax Board estimates that the annual contribution amount
will be less than $250,000, or an adjusted amount for subsequent
taxable years.
(3) The Political Reform Act of 1974, an initiative measure,
provides that the Legislature may amend the act by a statute that
becomes effective only when approved by the voters.
This bill would require the Secretary of State to submit those
provisions of the act that amend the Political Reform Act of 1974 to
the voters for approval at the June 8, 2010, statewide primary
election.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Chapter 7 (commencing with Section 20600) is added to
Division 20 of the Elections Code, to read:
CHAPTER 7. FAIR ELECTIONS FUND
20600. (a) Each lobbying firm, as defined by Section 82038.5 of
the Government Code, each lobbyist, as defined by Section 82039 of
the Government Code, and each lobbyist employer, as defined by
Section 82039.5 of the Government Code, shall pay the Secretary of
State a nonrefundable fee of seven hundred dollars ($700) every two
years. Twenty-five dollars ($25) of each fee from each lobbyist shall
be deposited in the General Fund and used, when appropriated, for
the purposes of Article 1 (commencing with Section 86100) of Chapter
6 of Title 9 of the Government Code. The remaining amount of each fee
shall be deposited in the Fair Elections Fund established pursuant
to Section 91133 of the Government Code. The fees in this section may
be paid in even-numbered years when registrations are renewed
pursuant to Section 86106 of the Government Code.
(b) The Secretary of State shall biennially adjust the amount of
the fees collected pursuant to this section to reflect any increase
or decrease in the Consumer Price Index.
SEC. 2. Section 85300 of the Government Code is repealed.
SEC. 3. Section 86102 of the Government Code is repealed.
SEC. 4. Chapter 12 (commencing with Section 91015) is added to
Title 9 of the Government Code, to read:
CHAPTER 12. CALIFORNIA FAIR ELECTIONS ACT OF 2008
Article 1. General
91015. This chapter shall be known and may be cited as the
California Fair Elections Act of 2008.
91017. The people find and declare all of the following:
(a) The current campaign finance system burdens candidates with
the incessant rigors of fundraising and thus decreases the time
available to carry out their public responsibilities.
(b) The current campaign finance system diminishes the free speech
rights of nonwealthy voters and candidates whose voices are drowned
out by those who can afford to monopolize the arena of paid political
communications.
(c) The current campaign finance system fuels the public
perception of corruption at worst and conflict of interest at best
and undermines public confidence in the democratic process and
democratic institutions.
(d) Existing term limits place a greater demand on fundraising for
the next election even for elected officials in safe seats.
(e) The current campaign finance system undermines the First
Amendment right of voters and candidates to be heard in the political
process, undermines the First Amendment right of voters to hear all
candidates' speech, and undermines the core First Amendment value of
open and robust debate in the political process.
(f) Citizens want to ensure the integrity of California's system
of electronically reporting lobbyist contributions and the integrity
of future Secretaries of State to administer lobbyist disclosure
programs. Voters would like the opportunity to elect a Secretary of
State who has not accepted any contributions from entities or
individuals that employ lobbyists.
(g) In states where the fair elections full public financing laws
have been enacted and used, election results show that more
individuals, especially women and minorities, run as candidates and
growth in overall campaign costs diminish.
91019. The people enact this chapter to establish a Fair
Elections pilot program in campaigns for the office of Secretary of
State to accomplish the following purposes:
(a) To reduce the perception of influence of large contributions
on the decisions made by state government.
(b) To remove wealth as a major factor affecting whether an
individual chooses to become a candidate.
(c) To provide a greater diversity of candidates to participate in
the electoral process.
(d) To permit candidates to pursue policy issues instead of being
preoccupied with fundraising and allow officeholders more time to
carry out their official duties.
(e) To diminish the danger of actual corruption or the public
perception of corruption and strengthen public confidence in the
governmental and election processes.
(f) To reduce the perception of influence of lobbyist employers
upon future Secretaries of State and their administration of the
lobbyist disclosure program.
(g) To protect the public's fiscal interest by providing
sufficient resources to make the public financing program a viable
option for qualified candidates, while not wasting resources by
providing candidates with an unnecessarily large initial grant of
public funds.
91021. The people enact this chapter to further accomplish the
following purposes:
(a) To foster more equal and meaningful participation in the
political process.
(b) To provide candidates who participated in the program with
sufficient resources with which to communicate with voters.
(c) To increase the accountability of the Secretary of State to
the constituents who elect him or her.
(d) To provide voters with timely information regarding the
sources of campaign contributions, expenditures, and political
advertising.
Article 2. Applicability to the Political Reform Act of 1974
91023. Unless specifically superseded by this act, the
definitions and provisions of the Political Reform Act of 1974 shall
govern the interpretation of this chapter.
Article 3. Definitions
91024. "Address" means the mailing address as provided on the
voter registration form.
91025. For purposes of this chapter, "candidate" means, unless
otherwise stated, a candidate for Secretary of State.
91027. A "coordinated expenditure" means a payment made for the
purpose of influencing the outcome of an election for Secretary of
State that is made by any of the following methods:
(a) By a person in cooperation, consultation, or concert with, at
the request or suggestion of, or pursuant to a particular
understanding with a candidate, a candidate's controlled committee,
or an agent acting on behalf of a candidate or a controlled
committee.
(b) By a person for the dissemination, distribution, or
republication, in whole or in part, of any broadcast or any written,
graphic, or other form of campaign material prepared by a candidate,
a candidate's controlled committee, or an agent of a candidate or a
controlled committee.
(c) Based on specific information about the candidate's plans,
projects, or needs provided to the person making the payment by the
candidate or the candidate's agent who provides the information with
a view toward having the payment made.
(d) By a person if, in the same primary and general election in
which the payment is made, the person making the payment is serving
or has served as a member, employee, fundraiser, or agent of the
candidate's controlled committee in an executive or policymaking
position.
(e) By a person if the person making the payment has served in any
formal policy or advisory position with the candidate's campaign or
has participated in strategic or policymaking discussions with the
candidate's campaign relating to the candidate's pursuit of
nomination for election, or election, to the office of Secretary of
State in the same primary and general election as the primary and
general election in which the payment is made.
(f) By a person if the person making the payment retains the
professional services of an individual or person who, in a
nonministerial capacity, has provided or is providing
campaign-related services in the same election to a candidate who is
pursuing the same nomination or election as any of the candidates to
whom the communication refers.
91028. "Effective expenditures" for a nonparticipating candidate
means the amount spent plus any independent electioneering
expenditures intended to help elect the candidate minus any
expenditure treated as an independent electioneering expenditure
intended to defeat the candidate. For a participating candidate, it
means the amount of Fair Elections funding the candidate has received
plus any independent electioneering expenditures intended to help
elect the candidate minus any expenditure treated as an independent
electioneering expenditure intended to defeat the candidate.
91029. "Entity" means any person other than an individual.
91031. "Excess expenditure amount" means the amount of funds
spent or obligated to be spent by a nonparticipating candidate in
excess of the Fair Elections funding amount available to a
participating candidate running for the same office.
91033. "Exploratory period" means the period beginning 18 months
before the primary election and ending on the last day of the
qualifying period. The exploratory period begins before, but extends
to the end of, the qualifying period.
91035. "General election campaign period" means the period
beginning the day after the primary election and ending on the day of
the general election.
91037. "Independent candidate" means a candidate who does not
represent a political party that has been granted ballot status for
the general election and who has qualified, or is seeking to qualify,
to be on the general election ballot.
91039. "Independent electioneering expenditure" means any
expenditure of two thousand five hundred dollars ($2,500) or more
made by a person, party committee, political committee or political
action committee, or any entity required to file reports pursuant to
Section 84605, during the 45 calendar days before a primary or the 60
calendar days before a general election, which expressly advocates
the election or defeat of a clearly identified candidate or names or
depicts clearly identified candidates.
91043. "Nonparticipating candidate" means a candidate who is on
the ballot but has chosen not to apply for Fair Elections campaign
funding or a candidate who is on the ballot and has applied but has
not satisfied the requirements for receiving Fair Elections funding.
91045. "Office-qualified party" means a political party whose
gubernatorial or Secretary of State nominee has received 10 percent
or more of the votes at the last election.
91046. "Office-qualified candidate" is a candidate seeking
nomination from an office-qualified party.
91049. "Participating candidate" means a candidate who qualifies
for Fair Elections campaign funding. These candidates are eligible to
receive Fair Elections funding during primary and general election
campaign periods.
91051. "Party candidate" means a candidate who represents a
political party that has been granted ballot status and holds a
primary election to choose its nominee for the general election.
91053. "Performance-qualified candidate" means either an
office-qualified candidate or a candidate who has shown a broad base
of support by gathering twice the number of qualifying contributions
as is required for an office-qualified candidate. Independent
candidates may qualify for funding as performance-qualified
candidates.
91055. "Petty cash" means cash amounts of one hundred dollars
($100) or less per day that are drawn on the Fair Elections Debit
Card and used to pay expenses of no more than twenty-five dollars
($25) each.
91059. "Primary election campaign period" means the period
beginning 120 days before the primary election and ending on the day
of the primary election.
91061. "Qualified candidate" means a candidate seeking nomination
from a party that is not an office-qualified party.
91063. "Qualifying contribution" means a contribution of five
dollars ($5) that is received during the designated qualifying period
by a candidate seeking to become eligible for Fair Elections
campaign funding from a registered voter of the district in which the
candidate is running for office.
91065. "Qualifying period" means the period during which
candidates are permitted to collect qualifying contributions in order
to qualify for Fair Elections funding. It begins 270 days before the
primary election and ends 90 days before the day of the primary
election for party candidates and begins any time after January 1 of
the election year and lasts 180 days, but in no event ending later
than 90 days, before the general election for performance-qualified
candidates who are running as independent candidates.
91067. "Seed money contribution" means a contribution of no more
than one hundred dollars ($100) made by a California registered voter
during the exploratory period.
Article 4. Fair Elections Eligibility
91071. (a) An office-qualified candidate qualifies as a
participating candidate for the primary election campaign period if
the following requirements are met:
(1) The candidate files a declaration with the commission that the
candidate has complied and will comply with all of the requirements
of this act, including the requirement that during the exploratory
period and the qualifying period the candidate not accept or spend
private contributions from any source other than seed money
contributions, qualifying contributions, Fair Elections funds, and
political party funds as specified in Section 91123.
(2) The candidate meets the following qualifying contribution
requirements before the close of the qualifying period:
(A) The office-qualified candidate shall collect at least 7,500
qualifying contributions.
(B) Each qualifying contribution shall be acknowledged by a
receipt to the contributor, with a copy submitted by the candidate to
the county registrar of voters in the county where the candidate
files his or her declaration of candidacy. The receipt shall include
the contributor's signature, printed name, and address, the date, and
the name of the candidate on whose behalf the contribution is made.
In addition, the receipt shall indicate by the contributor's
signature that the contributor understands that the purpose of the
qualifying contribution is to help the candidate qualify for Fair
Elections campaign funding, that the contribution is the only
qualifying contribution the contributor has provided to a candidate
for this office, and that the contribution is made without coercion
or reimbursement.
(C) A contribution submitted as a qualifying contribution that
does not include a signed and fully completed receipt shall not be
counted as a qualifying contribution.
(D) All five-dollar ($5) qualifying contributions, whether in the
form of cash, check, or money order made out to the candidate's
campaign account, shall be deposited by the candidate in the
candidate's campaign account.
(E) All qualifying contributions' signed receipts shall be sent to
the county registrar of voters in the county where the candidate
files his or her declaration of candidacy and shall be accompanied by
a check or other written instrument from the candidate's campaign
account for the total amount of qualifying contribution funds
received for deposit in the Fair Elections Fund. This submission
shall be accompanied by a signed statement from the candidate
indicating that all of the information on the qualifying contribution
receipts is complete and accurate to the best of the candidate's
knowledge and that the amount of the enclosed check or other written
instrument is equal to the sum of all of the five-dollar ($5)
qualifying contributions the candidate has received. County
registrars of voters shall forward these checks or other written
instruments to the commission.
(b) A candidate qualifies as a participating candidate for the
general election campaign period if both of the following
requirements are met:
(1) The candidate met all of the applicable requirements and filed
a declaration with the commission that the candidate has fulfilled
and will fulfill all of the requirements of a participating candidate
as stated in this act.
(2) As a participating party candidate during the primary election
campaign period, the candidate had the highest number of votes of
the candidates contesting the primary election from the candidate's
respective party and, therefore, won the party's nomination.
91073. (a) A qualified candidate shall collect at least one-half
of the number of qualifying contributions as required for an
office-qualified candidate for the same office. A qualified candidate
may show a greater base of support by collecting double the amount
of qualifying contributions as required for an office-qualified
candidate to become a performance-qualified candidate. The candidate
shall also file a declaration with the commission that the candidate
has complied and will comply with all of the requirements of this
act.
(b) An independent candidate who does not run in a primary may
become a performance-qualified candidate by collecting twice as many
qualifying contributions as required of an office-qualified
candidate. The qualifying period for such candidates shall begin any
time after January 1 of the election year and shall last 180 days,
except that it shall end no later than 90 days before the general
election. An independent candidate shall notify the commission within
24 hours of the day when the candidate has begun collecting
qualifying contributions. The candidate shall also file a declaration
with the commission that he or she has complied and will comply with
all of the requirements of this chapter.
91075. During the first election that occurs after the effective
date of this act, a candidate may be certified as a participating
candidate, notwithstanding the acceptance of contributions or making
of expenditures from private funds before the date of enactment that
would, absent this section, disqualify the candidate as a
participating candidate, provided that any private funds accepted but
not expended before the effective date of this act meet any of the
following criteria:
(a) Are returned to the contributor.
(b) Are held in a segregated account and used only for retiring a
debt from a previous campaign.
(c) Are submitted to the commission for deposit in the Fair
Elections Fund.
91077. A participating candidate who accepts any benefits during
the primary election campaign period shall comply with all of the
requirements of this act through the general election campaign period
whether the candidate continues to accept benefits or not.
91079. (a) During the primary and general election campaign
periods, a participating candidate who has voluntarily agreed to
participate in, and has become eligible for, Fair Elections benefits,
shall not accept private contributions from any source other than
the candidate's political party as specified in Section 91123.
(b) During the qualifying period and the primary and general
election campaign periods, a participating candidate who has
voluntarily agreed to participate in, and has become eligible for,
Fair Elections benefits shall not solicit or receive contributions
for any other candidate or for any political party or other political
committee.
(c) No person shall make a contribution in the name of another
person. A participating candidate who receives a qualifying
contribution or a seed money contribution that is not from the person
listed on the receipt required by subparagraph (D) of paragraph (2)
of subdivision (a) of Section 91071 shall be liable to pay the
commission the entire amount of the inaccurately identified
contribution, in addition to any penalties.
(d) During the primary and general election campaign periods, a
participating candidate shall pay for all of the candidate's campaign
expenditures, except petty cash expenditures, by means of a "Fair
Elections Debit Card" issued by the commission, as authorized under
Section 91137.
(e) Participating candidates shall furnish complete campaign
records to the commission upon request. Candidates shall cooperate
with any audit or examination by the commission, the Franchise Tax
Board, or any enforcement agency.
91081. (a) During the primary election period and the general
election period, each participating candidate shall conduct all
campaign financial activities through a single campaign account.
(b) Notwithstanding Section 85201, a participating candidate may
maintain a campaign account other than the campaign account described
in subdivision (a) if the other campaign account is for the purpose
of retiring a net debt outstanding that was incurred during a
previous election campaign in which the candidate was not a
participating candidate.
(c) Contributions for the purposes of retiring a previous campaign
debt that are deposited in the "other campaign account" described in
subdivision (b) shall not be considered "contributions" to the
candidate's current campaign. Those contributions shall only be
raised during the six-month period following the date of the
election.
91083. (a) Participating candidates shall use their Fair
Elections funds only for direct campaign purposes.
(b) A participating candidate shall not use Fair Elections funds
for any of the following:
(1) Costs of legal defense or fines resulting from any campaign
law enforcement proceeding under this act.
(2) Indirect campaign purposes, including, but not limited to, the
following:
(A) The candidate's personal support or compensation to the
candidate or the candidate's family.
(B) The candidate's personal appearance.
(C) A contribution or loan to the campaign committee of another
candidate for any elective office or to a party committee or other
political committee.
(D) An independent electioneering expenditure.
(E) A gift in excess of twenty-five dollars ($25) per person.
(F) Any payment or transfer for which compensating value is not
received.
91085. (a) Personal funds contributed as seed money by a
candidate seeking to become eligible as a participating candidate or
by adult members of the candidate's family shall not exceed the
maximum of one hundred dollars ($100) per contributor.
(b) Personal funds shall not be used to meet the qualifying
contribution requirement except for one five-dollar ($5) contribution
from the candidate and one five-dollar ($5) contribution from the
candidate's spouse.
91087. (a) The only private contributions a candidate seeking to
become eligible for Fair Elections funding shall accept, other than
qualifying contributions and limited contributions from the candidate'
s political party as specified in Section 91123, are seed money
contributions contributed by duly registered voters in the district
in which the candidate is running for election prior to the end of
the qualifying period.
(b) A seed money contribution shall not exceed one hundred dollars
($100) per donor, and the aggregate amount of seed money
contributions accepted by a candidate seeking to become eligible for
Fair Elections funding shall not exceed seventy-five thousand dollars
($75,000).
(c) Receipts for seed money contributions shall include the
contributor's signature, printed name, address, and ZIP Code.
Receipts described in this subdivision shall be made available to the
commission upon request.
(d) Seed money shall be spent only during the exploratory and
qualifying periods. Seed money shall not be spent during the primary
or general election campaign periods, except when they overlap with
the candidate's qualifying period. Any unspent seed money shall be
turned over to the commission for deposit in the Fair Elections Fund.
(e) Within 72 hours after the close of the qualifying period,
candidates seeking to become eligible for Fair Elections funding
shall do both of the following:
(1) Fully disclose all seed money contributions and expenditures
to the commission.
(2) Turn over to the commission for deposit in the Fair Elections
Fund any seed money the candidate has raised during the exploratory
period that exceeds the aggregate seed money limit.
91091. Participating candidates in contested races shall agree to
participate in at least one public debate during a contested primary
election and two public debates during a contested general election,
to be conducted pursuant to regulations promulgated by the
commission.
91093. (a) No more than five business days after a candidate
applies for Fair Elections benefits, the county registrar of voters
in the county where the candidate files his or her declaration of
candidacy shall certify that the candidate is or is not eligible.
Eligibility may be revoked if the candidate violates the requirements
of this act, in which case all Fair Elections funds shall be repaid.
(b) The candidate's request for certification shall be signed by
the candidate and the candidate's campaign treasurer under penalty of
perjury.
(c) The certification determination of the county registrar of
voters is final except that it is subject to a prompt judicial
review.
Article 5. Fair Elections Benefits
91095. (a) Candidates who qualify for Fair Elections funding for
primary and general elections shall:
(1) Receive Fair Elections funding from the commission for each
election in an amount specified by Section 91099. This funding may be
used to finance campaign expenses during the particular campaign
period for which it was allocated consistent with Section 91081.
(2) Receive, if a performance-qualified candidate, additional Fair
Elections funding to match the effective expenditures of any
candidates in the election that exceed the effective expenditures of
the performance-qualified candidate.
(b) The maximum aggregate amount of funding a participating
performance-qualified candidate shall receive to match independent
electioneering expenditures and excess expenditures of
nonparticipating candidates shall not exceed four times the base
funding amount pursuant to Section 91099 for a particular primary or
general election campaign period.
91095.5. (a) An expenditure by a candidate in a primary election
against a candidate running for that office in another party's
primary shall be treated as an independent electioneering expenditure
against that candidate when that candidate's effective expenditures
are less than those of the candidate making the expenditure for the
purposes of Section 91095.
(b) The commission shall promulgate regulations allocating the
share of expenditures that reference or depict more than one
candidate for the purposes of Section 91095.
(c) Expenditures made before the general election period that
consist of a contract, promise, or agreement to make an expenditure
during the general election period resulting in an extension of
credit shall be treated as though made at the beginning of the
general election period.
91097. (a) An eligible qualified or performance-qualified
candidate running in a primary election shall receive the candidate's
Fair Elections funding for the primary election
campaign period on the date on which the
county registrar of voters certifies the candidate as a participating
candidate or at the beginning of the primary election period,
whichever is later.
(b) An eligible qualified or performance-qualified candidate shall
receive the candidate's Fair Elections funding for the general
election campaign period within two business days after certification
of the primary election results.
91099. (a) For eligible candidates in a primary election:
(1) The base amount of Fair Elections funding for an eligible
office-qualified candidate in a primary election is one million
dollars ($1,000,000).
(2) The amount of Fair Elections funding for an eligible qualified
candidate in a primary election is 20 percent of the base amount
that an office-qualified candidate would receive.
(b) For eligible candidates in a general election:
(1) The base amount of Fair Elections funding for a
performance-qualified candidate in a general, special, or special
runoff election is one million three hundred thousand dollars
($1,300,000).
(2) The amount of Fair Elections funding for an eligible qualified
candidate in a contested general election is 25 percent of the base
amount a performance-qualified candidate would receive.
Article 6. Disclosure Requirements
91107. (a) If a nonparticipating candidate's total expenditures
or promises to make campaign expenditures exceed the amount of Fair
Elections funding allocated to the candidate's Fair Elections
opponent or opponents, the candidate shall declare every excess
expenditure amount which, in the aggregate, is more than five
thousand dollars ($5,000) to the commission online or electronically
within 24 hours of the time the expenditure or promise is made,
whichever occurs first.
(b) The commission may make its own determination as to whether
excess expenditures have been made by nonparticipating candidates.
(c) Upon receiving an excess expenditure declaration or
determining that an excess expenditure has been made, the commission
shall immediately release additional Fair Elections funding to the
opposing performance-qualified candidates pursuant to Section 91095.
91111. (a) In addition to any other report required by this
chapter, a committee, including a political party committee, that is
required to file reports pursuant to Section 84605 and that makes
independent electioneering expenditures of two thousand five hundred
dollars ($2,500) or more during a calendar year in connection with a
candidate for Secretary of State, shall file online or electronically
a report with the Secretary of State disclosing the making of the
independent electioneering expenditure. This report shall disclose
the same information required by subdivision (b) of Section 84204 and
shall be filed within 24 hours of the time the independent
electioneering expenditure is made.
(b) The report to the Secretary of State shall include a signed
statement under penalty of perjury by the person or persons making
the independent electioneering expenditure identifying the candidate
or candidates whom the independent electioneering expenditure is
intended to help elect or defeat and affirming that the expenditure
is independent and whether it is coordinated with a candidate or a
political party.
(c) Any individual or organization that fails to file the required
report to the Secretary of State or provides materially false
information in a report filed pursuant to subdivision (a) or (b) may
be fined up to three times the amount of the independent
electioneering expenditure, in addition to any other remedies
provided by this act.
(d) The Secretary of State shall provide information received
pursuant to subdivision (a) to the commission simultaneously upon
receipt. Upon receiving a report that an independent electioneering
expenditure has been made or obligated to be made, the commission
shall immediately release additional Fair Elections funding pursuant
to Section 91095.
91113. All broadcast and print advertisements placed by
candidates or their committees shall include a clear written or
spoken statement indicating that the candidate has approved of the
contents of the advertisement.
Article 7. Legal Defense, Officeholder, and Inaugural Funds
91115. (a) Notwithstanding Section 85316, a Secretary of State or
candidate for the office of Secretary of State may establish a
separate account to defray attorney's fees and other related legal
costs incurred for the candidate's or elected state officer's legal
defense if the candidate or elected state officer is subject to one
or more civil or criminal proceedings or administrative proceedings
arising directly out of the conduct of an election campaign, the
electoral process, or the performance of the elected state officer's
governmental activities and duties. These funds may be used only to
defray those attorney's fees and other related legal costs.
(b) A Secretary of State may establish a separate account for
expenses associated with holding office that are reasonably related
to a legislative or governmental purpose as specified in this
subdivision and in regulations of the commission. The total amount of
funds that may be deposited in a calendar year into an account
established pursuant to this subdivision shall not exceed fifty
thousand dollars ($50,000).
(c) A Secretary of State may establish an inaugural account to
cover the cost of events, celebrations, gatherings, and
communications that take place as part of, or in honor of, the
inauguration of the Secretary of State.
(d) The maximum amount of contributions a candidate or elected
state officer whose office is covered by these provisions may receive
from a contributor in a calendar year for all of the accounts
described in subdivisions (a), (b), and (c) combined is five hundred
dollars ($500). All contributions, whether cash or in kind, shall be
reported in a manner prescribed by the commission. Contributions to
such funds shall not be considered campaign contributions.
(e) Once the legal dispute is resolved, the candidate shall
dispose of any funds remaining after all expenses associated with the
dispute are discharged or after the elected state officer whose
office is covered by these provisions leaves office, for one or more
of the purposes set forth in paragraphs (1) to (5), inclusive, of
subdivision (b) of Section 89519.
Article 8. Restrictions on Candidates
91121. A nonparticipating candidate may accept an otherwise
lawful contribution after the date of the election only to the extent
that the contribution does not exceed net debts outstanding from the
election.
91123. Participating candidates may accept monetary or in-kind
contributions from political parties provided that the aggregate
amount of such contributions from all political party committees
combined does not exceed the equivalent of 5 percent of the original
Fair Elections financing allotment for that office for that election.
Such expenditures shall not count against the moneys spent by Fair
Elections candidates.
Article 9. Ballot Pamphlet Statements
91127. The Secretary of State shall designate in the state ballot
pamphlet and on any Internet Web site listing of candidates
maintained by any government agency including, but not limited, to
the Secretary of State those candidates who have voluntarily agreed
to be participating candidates.
91131. (a) A candidate for Secretary of State who is a
participating candidate may place a statement in the state ballot
pamphlet that does not exceed 250 words. The statement shall not make
any reference to any opponent of the candidate. The candidate may
also provide a list of up to 10 endorsers for placement in the state
ballot pamphlet or sample ballot, as appropriate. This statement and
list of endorsers shall be submitted in accordance with timeframes
and procedures set forth by the Secretary of State for the
preparation of the state ballot pamphlets and by county elections
officials for the preparation of sample ballots.
(b) A nonparticipating candidate for Secretary of State may pay to
place a statement in the state ballot pamphlet that does not exceed
250 words. A nonparticipating candidate may also pay to place a list
of up to 10 endorsers in the state ballot pamphlet or sample ballot,
as appropriate. The statement shall not make any reference to any
opponent of the candidate. This statement and list of endorsers shall
be submitted in accordance with timeframes and procedures set forth
by the Secretary of State for the preparation of the state ballot
pamphlets and by county elections officials for the preparation of
sample ballots. The nonparticipating candidate shall be charged the
pro rata cost of printing, handling, translating, and mailing any
ballot pamphlet statement and list of endorsers provided pursuant to
this subdivision.
Article 10. Appropriations for the Fair Elections Fund
91133. (a) A special, dedicated, nonlapsing Fair Elections Fund
is created in the State Treasury. Commencing January 1, 2011, the
funds collected pursuant to Section 20600 of the Elections Code
shall, when appropriated by the Legislature, be available from the
Fair Elections Fund to the commission for expenditure for the purpose
of providing public financing for the election campaigns of
certified participating candidates during primary and general
campaign periods.
(b) Funding for the administrative and enforcement costs of the
commission related to this act shall be from the Fair Elections Fund
and shall be, for each four-year election cycle, no more than 10
percent of the total amount deposited in the Fair Elections Fund
during the four-year election cycle.
91135. Other sources of revenue to be deposited in the Fair
Elections Fund shall include all of the following:
(a) The qualifying contributions required of candidates seeking to
become certified as participating candidates and candidates' excess
qualifying contributions.
(b) The excess seed money contributions of candidates seeking to
become certified as participating candidates.
(c) Unspent funds distributed to any participating candidate who
does not remain a candidate until the primary or general election for
which they were distributed, or funds that remain unspent by a
participating candidate following the date of the primary or general
election for which they were distributed.
(d) Voluntary donations made directly to the Fair Elections Fund.
(e) Other funds appropriated by the Legislature.
(f) Any interest generated by the Fair Elections Fund.
(g) Any other sources of revenue from the General Fund or from
other sources as determined by the Legislature.
Article 11. Administration
91137. (a) Upon a determination that a candidate has met all the
requirements for becoming a participating candidate as provided for
in this act, the commission shall issue to the candidate a card,
known as the "Fair Elections Debit Card," and a "line of debit"
entitling the candidates and members of the candidate's staff to draw
Fair Elections funds from a commission account to pay for all
campaign costs and expenses up to the amount of Fair Elections
funding the candidate has received.
(b) Neither a participating candidate nor any other person on
behalf of a participating candidate shall pay campaign costs by cash,
check, money order, loan, or by any other financial means other than
the Fair Elections Debit Card.
(c) Cash amounts of one hundred dollars ($100) or less per day may
be drawn on the Fair Elections Debit Card and used to pay expenses
of no more than twenty-five dollars ($25) each. Records of all such
expenditures shall be maintained and, upon request, made available to
the commission.
91139. If the commission determines that there are insufficient
funds in the program to fund adequately all candidates eligible for
Fair Elections funds, the commission shall reduce the grants
proportionately to all eligible candidates. If the commission
notifies a candidate that the Fair Elections funds will be reduced
and the candidate has not received any Fair Elections funds, the
candidate may decide to be a nonparticipating candidate. If a
candidate has already received Fair Elections funds or wishes to
start receiving such funds, a candidate who wishes to collect
contributions may do so in amounts up to the contribution limits
provided for nonparticipating candidates but shall not collect more
than the total of Fair Elections funds that the candidate was
entitled to receive had there been sufficient funds in the program
less the amount of Fair Elections funds that will be or have been
provided. If, at a later point, the commission determines that
adequate funds have become available, candidates, who have not raised
private funds, shall receive the funds owed to them.
91140. The commission shall adjust the seed money limitations in
subdivision (a) of Section 91085 and in subdivision (b) of Section
91087 and the Fair Elections Fund funding amounts in Section 91099 in
January after the election of the Secretary of State to reflect any
increase or decrease in the Consumer Price Index and the increase or
decrease in the number of registered voters in California. The
adjustments made pursuant to this section shall be rounded to the
nearest ten dollars ($10) for the seed money limitations and one
thousand dollars ($1,000) for the Fair Elections funding amounts.
Article 12. Enforcement
91141. (a) If a participating candidate spends or obligates to
spend more than the Fair Elections funding the candidate is given,
and if it is determined by the commission, subject to court review,
not to be an amount that had or could have been expected to have a
significant impact on the outcome of the election, then the candidate
shall repay to the Fair Elections Fund an amount equal to the
excess.
(b) If a participating candidate spends or obligates to spend more
than the Fair Elections funding the candidate is given, and if that
excess amount is determined by the commission, subject to court
review, to be an amount that had or could have been expected to have
a significant impact on the outcome of the election, then the
candidate shall repay to the Fair Elections Fund an amount up to 10
times the value of the excess.
91143. It is unlawful for candidates to knowingly accept more
benefits than those to which they are entitled, spend more than the
amount of Fair Elections funding they have received, or misuse such
benefits or Fair Elections funding.
91145. Any person who knowingly or willfully violates any
provision of this chapter is guilty of a misdemeanor. Any person who
knowingly or willfully causes any other person to violate any
provision of this chapter, or who aids and abets any other person in
the violation of any provision of this chapter shall be liable under
this section.
91147. Prosecution for a violation of any provision of this
chapter shall be commenced within four years after the date on which
the violation occurred.
91149. No person convicted of a misdemeanor under this chapter
shall act as a lobbyist or state contractor, or run for elective
state office, for a period of five years following the date of
conviction unless the court at the time of sentencing specifically
determines that this provision shall not be applicable.
91157. This chapter shall remain in effect only until January 1,
2019, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2019, deletes or extends
that date.
SEC. 5. Article 8.6 (commencing with Section 18798) is added to
Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation
Code, to read:
Article 8.6. Voters Fair Elections Fund
18798. (a) An individual may designate on the tax return that a
contribution in excess of the tax liability, if any, be made to the
Voters Fair Elections Fund, pursuant to Section 18798.1.
(b) Contributions shall be in full dollar amounts and may be made
individually by each signatory on a joint return.
(c) A designation under subdivision (a) shall be made for any
taxable year on the individual return for that taxable year and, once
made, shall be irrevocable. In the event that payments and credits
reported on the return, together with any other credits associated
with the individual's account, do not exceed the individual's
liability, the return shall be treated as if no designation were
made.
(d) The Franchise Tax Board shall revise the forms of the return
to include a space labeled "Voters Fair Elections Fund" to allow for
the designation permitted under subdivision (a). The forms shall also
include instructions that the contribution may be in the amount of
one dollar ($1) or more and that the contribution will be used to
provide public funding for the campaigns of qualified candidates for
Secretary of State who agree to take no private moneys for their
campaigns.
(e) Notwithstanding any other provision of law, a voluntary
contribution designation for the Voters Fair Elections Fund shall not
be added to the tax return until another voluntary contribution is
removed.
(f) A deduction shall be allowed under Article 6 (commencing with
Section 17201) of Chapter 3 of Part 10 for any contribution made
pursuant to subdivision (a).
18798.1. There is hereby established in the State Treasury the
Voters Fair Elections Fund to receive contributions made pursuant to
Section 18798. The Franchise Tax Board shall notify the Controller of
both the amount of moneys paid by taxpayers in excess of their tax
liability and the amount of refund moneys which taxpayers have
designated pursuant to Section 18798 to be transferred to the Voters
Fair Elections Fund. The Controller shall transfer from the Personal
Income Tax Fund to the Voters Fair Elections Fund an amount not in
excess of the sum of the amounts designated by individuals pursuant
to Section 18798 for payment into that fund.
18798.2. All moneys transferred to the Voters Fair Elections
Fund, upon appropriation by the Legislature, shall be allocated as
follows:
(a) To the Franchise Tax Board and the Controller for
reimbursement of all costs incurred by the Franchise Tax Board and
the Controller in connection with their duties under this article.
(b) To the Fair Elections Fund established pursuant to Section
91133 of the Government Code.
18798.3. (a) Except as otherwise provided in subdivision (b),
this article shall remain in effect only until January 1 of the fifth
taxable year following the first appearance of the Voters Fair
Elections Fund on the personal income tax return, and as of that date
is repealed, unless a later enacted statute that is enacted before
the applicable date deletes or extends that date.
(b) (1) By September 1 of the second calendar year, and by
September 1 of each subsequent calendar year that the Voters Fair
Elections Fund appears on a tax return, the Franchise Tax Board shall
do all of the following:
(A) Determine the minimum contribution amount required to be
received during the next calendar year for the fund to appear on the
tax return for the taxable year that includes that next calendar
year.
(B) Provide written notification to the Fair Political Practices
Commission of the amount determined in subparagraph (A).
(C) Determine whether the amount of contributions estimated to be
received during the calendar year will equal or exceed the minimum
contribution amount determined by the Franchise Tax Board for the
calendar year pursuant to subparagraph (A). The Franchise Tax Board
shall estimate the amount of contributions to be received by using
the actual amounts received and an estimate of the contributions that
will be received by the end of that calendar year.
(2) If the Franchise Tax Board determines that the amount of
contributions estimated to be received during a calendar year will
not at least equal the minimum contribution amount for the calendar
year, this article is repealed with respect to taxable years
beginning on or after January 1 of that calendar year.
(3) For purposes of this section, the minimum contribution amount
for a calendar year means two hundred fifty thousand dollars
($250,000) for the second calendar year after the first appearance of
the Voters Fair Elections Fund on the personal income tax return or
the adjusted minimum contribution amount adjusted pursuant to
subdivision (c).
(c) For each calendar year, beginning with the third calendar year
after the first appearance of the Voters Fair Elections Fund on the
personal income tax return, the Franchise Tax Board shall adjust, on
or before September 1, the minimum contribution amount specified in
subdivision (b) as follows:
(1) The minimum estimated contribution amount for the calendar
year shall be an amount equal to the product of the minimum estimated
contribution amount for the calendar year multiplied by the
inflation factor adjustment as specified in subparagraph (A) of
paragraph (2) of subdivision (h) of Section 17041, rounded off to the
nearest dollar.
(2) The inflation factor adjustment used for the calendar year
shall be based on the figures for the percentage change in the
California Consumer Price Index received on or before August 1 of the
calendar year pursuant to paragraph (1) of subdivision (h) of
Section 17041.
(d) Notwithstanding the repeal of this article, any contribution
amounts designated pursuant to this article prior to its repeal shall
continue to be transferred and disbursed in accordance with this
article as in effect immediately prior to that repeal.
SEC. 6. The provisions of Section 81012 of the Government Code,
which allow legislative amendments to the Political Reform Act of
1974, shall apply to all of the provisions of this act that are
placed on the June 8, 2010, ballot, except that Section 91157 of the
Government Code, and Article 8.6 (commencing with Section 18798) of
Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation
Code, may be amended or repealed by a statute passed in each house of
the Legislature, a majority of the membership concurring, and signed
by the Governor.
SEC. 7. (a) The Secretary of State shall, pursuant to subdivision
(b) of Section 81012 of the Government Code, submit Sections 1, 2, 3,
4, 5, 6, and 8 of this act for approval by the voters at the June 8,
2010, statewide primary election, notwithstanding Section 9040 of
the Elections Code.
(b) (1) Notwithstanding any other provision of law, all ballots of
the June 8, 2010, primary election shall have printed thereon as the
ballot label the following: "CALIFORNIA FAIR ELECTIONS ACT. Creates
a voluntary system for candidates for Secretary of State to qualify
for a public campaign grant if they agree to strict spending limits
and no private contributions. Each candidate demonstrating enough
public support would receive the same amount. Participating
candidates would be prohibited from raising or spending money beyond
the grant. There would be strict enforcement and accountability.
Funded by voluntary contributions and by an annual fee on lobbyists,
lobbying firms, and lobbyist employers." At the appropriate location
on the ballot, in the manner prescribed by law, there shall be
provided the opportunity for voters to indicate whether they vote for
or against the measure.
(2) Notwithstanding Sections 13247 and 13281 of the Elections
Code, the language in paragraph (1) shall be the only language
included in the ballot label for the condensed statement of the
ballot title, and the Attorney General shall not supplement, subtract
from, or revise that language, except that the Attorney General
shall include the financial impact summary prepared pursuant to
Section 9087 of the Elections Code and Section 88003 of the
Government Code. The ballot label is the condensed statement of the
ballot title and summary and the financial impact summary.
(c) Where the voting in the election is done by means of voting
machines used pursuant to law in the manner that carries out the
intent of this section, the use of the voting machines and the
expression of the voters' choice by means thereof are in compliance
with this section.
(d) (1) Notwithstanding any other provision of law, the Secretary
of State shall use the following as the ballot title and summary for
the act: "CALIFORNIA FAIR ELECTIONS ACT. This act creates a voluntary
system for candidates for Secretary of State to qualify for a public
campaign grant if they agree to strict spending limits and take no
private contributions. Candidates would have to qualify before
receiving the grant. Candidates who demonstrate sufficient public
support would receive the same amount. Participating candidates would
be prohibited from raising or spending money beyond the grant. There
would be strict enforcement and accountability with published
reports open to the public. Funded by voluntary contributions and by
a $350 annual registration fee on lobbyists, lobbying firms, and
lobbyist employers."
(2) Notwithstanding any other provision of law, the language in
paragraph (1) shall be the only language included in the ballot title
and summary, and the Attorney General shall not supplement, subtract
from, or otherwise revise that language, except that the Attorney
General shall include the financial impact summary prepared pursuant
to Section 9087 of the Elections Code and Section 88003 of the
Government Code.
(e) The Secretary of State shall include, in the ballot pamphlets
mailed pursuant to Section 9094 of the Elections Code, the
information specified in Section 9084 of the Elections Code regarding
the act described in subdivision (a).
SEC. 8. The section of this act that adds Chapter 12 (commencing
with Section 91015) to Title 9 of the Government Code shall be deemed
to amend the Political Reform Act of 1974 as amended and all of the
provisions of the Political Reform Act of 1974 as amended that do not
conflict with Chapter 12 shall apply to the provisions of that
chapter.
SEC. 9. The provisions of this act are severable. If any provision
of this act or its application is held invalid, that invalidity
shall not affect other provisions or applications that can be given
effect without the invalid provision or application.