BILL NUMBER: AB 1181	ENROLLED
	BILL TEXT

	PASSED THE SENATE  APRIL 15, 2010
	PASSED THE ASSEMBLY  APRIL 22, 2010
	AMENDED IN SENATE  AUGUST 26, 2009
	AMENDED IN SENATE  AUGUST 17, 2009
	AMENDED IN SENATE  JUNE 30, 2009
	AMENDED IN ASSEMBLY  APRIL 28, 2009
	AMENDED IN ASSEMBLY  APRIL 14, 2009

INTRODUCED BY   Assembly Member Huber

                        FEBRUARY 27, 2009

   An act to amend Sections 84203, 84204, 84215, 84218, 84225, 84605,
85200, 86100, 86107, and 86118 of the Government Code, relating to
the Political Reform Act of 1974.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1181, Huber. Political Reform Act of 1974: statements and
reports.
   (1) The Political Reform Act of 1974 requires 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. The act requires the late
contribution or the late independent expenditure to be reported by
facsimile transmission, guaranteed overnight delivery, or personal
delivery within 24 hours of the time the contribution or independent
expenditure is made. The act also requires certain of these types of
contributions and expenditures to be reported online.
   This bill would provide that if a late contribution or late
independent expenditure is required to be reported to the Secretary
of State, the report to the Secretary of State shall be by online or
electronic transmission only.
   (2) The act requires that candidates, including appellate court
and Supreme Court candidates, as well as other specified persons or
entities periodically file reports online or electronically with the
Secretary of State, including any general purpose committee or
candidate that cumulatively has received contributions or made
expenditures totaling $50,000 or more, any slate mailer organization
with cumulative reportable payments received or made for purposes of
producing slate mailers of $50,000 or more, or lobbyists, lobbying
firms, or lobbyist employers who have reportable payments, expenses,
contributions, gifts, or other items of $5,000 or more in a calendar
quarter.
   The bill would require those candidates, as well as candidates for
superior court, and other specified persons or entities to
periodically file reports online or electronically with the Secretary
of State, including a general purpose committee or candidate that
cumulatively has received contributions or made expenditures totaling
$25,000 or more, any slate mailer organization with cumulative
reportable payments received or made for purposes of producing slate
mailers of $25,000 or more, or lobbyists, lobbying firms, or lobbyist
employers who have reportable payments, expenses, contributions,
gifts, or other items of $2,500 or more in a calendar quarter. The
bill would provide that copies of those statements or reports not be
filed with the local filing officer unless they relate to a local
elective office or local ballot measure filed by a candidate for both
local and state elective office. By imposing criminal penalties on
filers who fail to comply with these requirements, the bill would
impose a state-mandated local program.
   (3) The act generally requires all candidates and elected officers
and specified committees to file campaign statements semiannually.
The act requires that a copy of a campaign statement of a candidate,
elected officer, or a controlled committee of a candidate or elected
officer be filed with the elections official of the county in which
the candidate or elected official is domiciled. Statewide elected
officers other than the members of the State Board of Equalization,
Supreme Court justices, candidates for these offices, and specified
committees are additionally required to file a copy of their campaign
statement with the Secretary of State, the Registrar-Recorder of Los
Angeles County, and the Registrar of Voters of the City and County
of San Francisco. Likewise, Members of the Legislature, members of
the State Board of Equalization, court of appeal justices, superior
court judges, candidates for these offices, and other specified
committees are additionally required to file a copy of their campaign
statement with the Secretary of State and the elections official of
the county with the largest number of registered voters in the
districts affected.
   The bill would delete these additional filing requirements for
statewide elected offices, Members of the Legislature, Supreme Court
justices, court of appeal justices, superior court judges, candidates
for those offices, and the specified committees and would instead
require that these persons and entities file with their campaign
statements with the Secretary of State in the manner described in (2)
above.
   (4) This bill would incorporate additional changes in Section
84218 of the Government Code proposed by AB 1514, that would become
operative only if AB 1514 and this bill are both chaptered and become
effective on or before January 1, 2010, and this bill is chaptered
last.
   (5) 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 no reimbursement is required by this
act for a specified reason.
   (6) The Political Reform Act of 1974, an initiative measure,
provides that the Legislature may amend the act to further the act's
purposes upon a 2/3 vote of each house and compliance with specified
procedural requirements.
   This bill would declare that it furthers the purposes of the act.



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

  SECTION 1.  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. If a late
contribution is required to be reported to the Secretary of State,
the report to the Secretary of State shall be by online or electronic
transmission only. 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. 2.  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. If a
late independent expenditure is required to be reported to the
Secretary of State, the report to the Secretary of State shall be by
online or electronic transmission only. 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. 3.  Section 84215 of the Government Code is amended to read:
   84215.  All candidates and elected officers and their controlled
committees, except as provided in subdivision (d), shall file one
copy of the campaign statements required by Section 84200 with the
elections official of the county in which the candidate or elected
official is domiciled, as defined in subdivision (b) of Section 349
of the Elections Code. In addition, campaign statements shall be
filed at the following places:
   (a) Statewide elected officers, including members of the State
Board of Equalization; Members of the Legislature; Supreme Court
justices, court of appeal justices, and superior court judges;
candidates for those offices and their controlled committees;
committees formed or existing primarily to support or oppose these
candidates, elected officers, justices and judges, or statewide
measures, or the qualification of state ballot measures; and all
state general purpose committees and filers not specified in
subdivisions (b) to (e), inclusive, shall file a campaign statement
by online or electronic means, as specified in Section 84605, and
shall file the original and one copy of the campaign statement in
paper format with the Secretary of State.
   (b) Elected officers in jurisdictions other than legislative
districts, State Board of Equalization districts, or appellate court
districts that contain parts of two or more counties, candidates for
these offices, their controlled committees, and committees formed or
existing primarily to support or oppose candidates or local measures
to be voted upon in one of these jurisdictions shall file the
original and one copy with the elections official of the county with
the largest number of registered voters in the jurisdiction.
   (c) County elected officers, candidates for these offices, their
controlled committees, committees formed or existing primarily to
support or oppose candidates or local measures to be voted upon in
any number of jurisdictions within one county, other than those
specified in subdivision (d), and county general purpose committees
shall file the original and one copy with the elections official of
the county.
   (d) City elected officers, candidates for city office, their
controlled committees, committees formed or existing primarily to
support or oppose candidates or local measures to be voted upon in
one city, and city general purpose committees shall file the original
and one copy with the clerk of the city and are not required to file
with the local elections official of the county in which they are
domiciled.
   (e) Notwithstanding the above, a committee, candidate, or elected
officer is not required to file more than the original and one copy,
or one copy, of a campaign statement with any one county elections
official or city clerk or with the Secretary of State.
   (f) If a committee is required to file campaign statements
required by Section 84200 or 84200.5 in places designated in
subdivisions (a) to (d), inclusive, it shall continue to file these
statements in those places, in addition to any other places required
by this title, until the end of the calendar year.
  SEC. 4.  Section 84218 of the Government Code is amended to read:
   84218.  (a) A slate mailer organization shall file semiannual
campaign statements for each period in which it has received payments
totaling five hundred dollars ($500) or more from any person for the
support of or opposition to candidates or ballot measures in a slate
mailer, or in which it has expended five hundred dollars ($500) or
more to produce one or more slate mailers. The semiannual statements
shall be filed no later than July 31 for the period ending June 30,
and no later than January 31 for the period ending December 31.
   (b) In addition to the semiannual statements required by
subdivision (a), slate mailer organizations shall file preelection
statements as follows:
   (1) Any slate mailer organization which produces a slate mailer
supporting or opposing candidates or measures being voted on in an
election held upon the first Tuesday after the first Monday in June
or November of an even-numbered year shall file the statements
specified in Section 84200.7 if, during the period covered by the
preelection statement, the slate mailer organization receives
payments totaling five hundred dollars ($500) or more from any person
for the support of or opposition to candidates or ballot measures in
one or more slate mailers, or expends five hundred dollars ($500) or
more to produce one or more slate mailers.
   (2) Any slate mailer organization which produces a slate mailer
supporting or opposing candidates or measures being voted on in an
election held on a date other than the first Tuesday after the first
Monday in June or November of an even-numbered year shall file the
statements specified in Section 84200.8 if, during the period covered
by the preelection statement, the slate mailer organization receives
payments totaling five hundred dollars ($500) or more from any
person for the support of or opposition to candidates or ballot
measures in one or more slate mailers, or expends five hundred
dollars ($500) or more to produce one or more slate mailers.
   (c) A slate mailer organization shall file two copies of its
campaign reports with the clerk of the county in which it is
domiciled. A slate mailer organization is domiciled at the address
listed on its statement of organization unless it is domiciled
outside California, in which case its domicile shall be deemed to be
Los Angeles County for purposes of this section.
   In addition, slate mailer organizations shall file campaign
reports as follows:
   (1) A slate mailer organization which produces one or more slate
mailers supporting or opposing candidates or measures voted on in a
state election, or in more than one county, shall file campaign
reports in the same manner as state general purpose committees
pursuant to subdivision (a) of Section 84215.
   (2) A slate mailer organization which produces one or more slate
mailers supporting or opposing candidates or measures voted on in
only one county, or in more than one jurisdiction within one county,
shall file campaign reports in the same manner as county general
purpose committees pursuant to subdivision (c) of Section 84215.
   (3) A slate mailer organization which produces one or more slate
mailers supporting or opposing candidates or measures voted on in
only one city shall file campaign reports in the same manner as city
general purpose committees pursuant to subdivision (d) of Section
84215.
   (4) Notwithstanding the above, no slate mailer organization shall
be required to file more than the original and one copy, or two
copies, of a campaign report with any one county or city clerk or
with the Secretary of State.
  SEC. 4.5.  Section 84218 of the Government Code is amended to read:

   84218.  (a) A slate mailer organization shall file semiannual
campaign statements no later than July 31 for the period ending June
30, and no later than January 31 for the period ending December 31.
   (b) In addition to the semiannual statements required by
subdivision (a), slate mailer organizations shall file preelection
statements as follows:
   (1) Any slate mailer organization which produces a slate mailer
supporting or opposing candidates or measures being voted on in an
election held upon the first Tuesday after the first Monday in June
or November of an even-numbered year shall file the statements
specified in Section 84200.7 if, during the period covered by the
preelection statement, the slate mailer organization receives
payments totaling five hundred dollars ($500) or more from any person
for the support of or opposition to candidates or ballot measures in
one or more slate mailers, or expends five hundred dollars ($500) or
more to produce one or more slate mailers.
   (2) Any slate mailer organization which produces a slate mailer
supporting or opposing candidates or measures being voted on in an
election held on a date other than the first Tuesday after the first
Monday in June or November of an even-numbered year shall file the
statements specified in Section 84200.8 if, during the period covered
by the preelection statement, the slate mailer organization receives
payments totaling five hundred dollars ($500) or more from any
person for the support of or opposition to candidates or ballot
measures in one or more slate mailers, or expends five hundred
dollars ($500) or more to produce one or more slate mailers.
   (c) A slate mailer organization shall file two copies of its
campaign reports with the clerk of the county in which it is
domiciled. A slate mailer organization is domiciled at the address
listed on its statement of organization unless it is domiciled
outside California, in which case its domicile shall be deemed to be
Los Angeles County for purposes of this section.
   In addition, slate mailer organizations shall file campaign
reports as follows:
   (1) A slate mailer organization which produces one or more slate
mailers supporting or opposing candidates or measures voted on in a
state election, or in more than one county, shall file campaign
reports in the same manner as state general purpose committees
pursuant to subdivision (a) of Section 84215.
   (2) A slate mailer organization which produces one or more slate
mailers supporting or opposing candidates or measures voted on in
only one county, or in more than one jurisdiction within one county,
shall file campaign reports in the same manner as county general
purpose committees pursuant to subdivision (c) of Section 84215.
   (3) A slate mailer organization which produces one or more slate
mailers supporting or opposing candidates or measures voted on in
only one city shall file campaign reports in the same manner as city
general purpose committees pursuant to subdivision (d) of Section
84215.
   (4) Notwithstanding the above, no slate mailer organization shall
be required to file more than the original and one copy, or two
copies, of a campaign report with any one county or city clerk or
with the Secretary of State.
  SEC. 5.  Section 84225 of the Government Code is amended to read:
   84225.  (a) For the purposes of this section only, "board" means
the Board of Administration of the Public Employees' Retirement
System, as established under Article 1 (commencing with Section
20090) of Chapter 2 of Part 3 of Division 5 of Title 2.
   (b) Except as provided in this section, the provisions of this
article do not apply to candidates for the board, including incumbent
board members running for reelection, as such candidates are
described in subdivision (g) of Section 20090.
   (c) (1) Candidates for board seats described in subdivision (g) of
Section 20090, including incumbent board members running for
reelection, shall, subject to the provisions described in paragraph
(1) of subdivision (a) of Section 84605, file campaign statements
both by online or electronic means and physically, submitting the
original and one copy, in paper format, with the Secretary of State
no later than two days before the beginning of the ballot period, as
determined by the board, for the period ending five days before the
beginning of the ballot period, and no later than January 10 for the
period ending December 31.
   (2) The campaign statements shall contain an itemized report
prepared on a form prescribed by the Commission, with the assistance
of the board, that provides the information contained in campaign
statements required under Section 84211 to the extent that the
information is applicable to a board election.
   (3) The original of a campaign statement shall be filed with the
Secretary of State and a copy shall be retained at the board's office
in Sacramento and is a public record.
  SEC. 6.  Section 84605 of the Government Code is amended to read:
   84605.  (a) The following persons shall file online or
electronically with the Secretary of State:
   (1) Any candidate, including superior court, appellate court, and
Supreme Court candidates and officeholders, committee, or other
persons who are required, pursuant to Chapter 4 (commencing with
Section 84100), to file statements, reports, or other documents in
connection with a state elective office or state measure, provided
that the total cumulative reportable amount of contributions
received, expenditures made, loans made, or loans received is
twenty-five thousand dollars ($25,000) or more. In determining the
cumulative reportable amount, all controlled committees, as defined
by Section 82016, shall be included. For a committee subject to this
title prior to January 1, 2000, the beginning date for calculating
cumulative totals is January 1, 2000. For a committee that is first
subject to this title on or after January 1, 2000, the beginning date
for calculating cumulative totals is the date the committee is first
subject to this title. A committee, as defined in subdivision (c) of
Section 82013, shall file online or electronically if it makes
contributions of twenty-five thousand dollars ($25,000) or more in a
calendar year.
   (2) Any general purpose committees, as defined in Section 82027.5,
including the general purpose committees of political parties, and
small contributor committees, as defined in Section 85203, that
cumulatively receive contributions or make expenditures totaling
twenty-five thousand dollars ($25,000) or more to support or oppose
candidates for any elective state office or state measure. For a
committee subject to this title prior to January 1, 2000, the
beginning date for calculating cumulative totals is January 1, 2000.
For a committee that first is subject to this title on or after
January 1, 2000, the beginning date for calculating cumulative totals
is the date the committee is first subject to this title.
   (3) Any slate mailer organization with cumulative reportable
payments received or made for the purposes of producing slate mailers
of twenty-five thousand dollars ($25,000) or more. For a slate
mailer organization subject to this title prior to January 1, 2000,
the beginning date for calculating cumulative totals is January 1,
2000. For a slate mailer organization that first is subject to this
title on or after January 1, 2000, the beginning date for calculating
cumulative totals is the date the organization is first subject to
this title.
   (4) Any lobbyist, lobbying firm, lobbyist employer, or other
persons required, pursuant to Chapter 6 (commencing with Section
86100), to file statements, reports, or other documents, provided
that the total amount of any category of reportable payments,
expenses, contributions, gifts, or other items is two thousand five
hundred dollars ($2,500) or more in a calendar quarter.
   (b) The Secretary of State shall also disclose on the Internet any
late contribution or late independent expenditure report, as defined
by Sections 84203 and 84204, respectively, not covered by paragraph
(1), (2), or (3) of subdivision (a) or any other provision of law.
   (c) Committees and other persons that are not required to file
online or electronically by this section may do so voluntarily.
   (d) Once a person or entity is required to file online or
electronically, subject to subdivision (a) or (c), the person or
entity shall be required to file all subsequent reports online or
electronically.
   (e) It shall be presumed that online or electronic filers file
under penalty of perjury.
   (f) Persons filing online or electronically shall also continue to
file required disclosure statements and reports in paper format. The
paper copy shall continue to be the official filing for audit and
other legal purposes until the Secretary of State, pursuant to
Section 84606, determines the system is operating securely and
effectively.
   (g) The Secretary of State shall maintain at all times a secured,
official version of all original online and electronically filed
statements and reports required by this chapter. Upon determination
by the Secretary of State, pursuant to Section 84606, that the system
is operating securely and effectively, this online or electronic
version shall be the official version for audit and other legal
purposes.
   (h) Except for statements related to a local elective office or a
local ballot measure filed by a candidate for local elective office
who is also a candidate for elective state office, a copy of a
statement, report, or other document filed by online or electronic
means with the Secretary of State shall not be filed with a local
filing officer.
  SEC. 7.  Section 85200 of the Government Code is amended to read:
   85200.  Prior to the solicitation or receipt of any contribution
or loan, an individual who intends to be a candidate for an elective
state office, as that term is defined by Section 82024, shall file
with the Secretary of State an original statement, signed under
penalty of perjury, of intention to be a candidate for a specific
office.
   An individual who intends to be a candidate for any other elective
office shall file the statement of intention with the same filing
officer and in the same location as the individual would file an
original campaign statement pursuant to subdivisions (b), (c), and
(d) of Section 84215.
   For purposes of this section, "contribution" and "loan" do not
include any payments from the candidate's personal funds for a
candidate filing fee or a candidate statement of qualifications fee.
  SEC. 8.  Section 86100 of the Government Code is amended to read:
   86100.  (a) Individual lobbyists shall prepare lobbyist
certifications pursuant to Section 86103 for filing with the
Secretary of State as part of the registration of the lobbying firm
in which the lobbyist is a partner, owner, officer, or employee or as
part of the registration of the lobbyist employer by which the
lobbyist is employed.
   (b) Lobbying firms shall register with the Secretary of State.
   (c) Lobbyist employers as defined in subdivision (a) of Section
82039.5 shall register with the Secretary of State.
   (d) Lobbyist employers as defined in subdivision (b) of Section
82039.5 and persons described in subdivision (b) of Section 86115 are
not required to register with the Secretary of State but shall file
statements pursuant to this article.
   (e) A registration statement shall be filed both by online or
electronic means and physically, submitting the original statement
and one copy, in paper format.
  SEC. 9.  Section 86107 of the Government Code is amended to read:
   86107.  (a) If any change occurs in any of the information
contained in a registration statement, an appropriate amendment shall
be filed both by online or electronic means and physically,
submitting the original one copy of the amendment, in paper format,
with the Secretary of State within 20 days after the change. However,
if the change includes the name of a person by whom a lobbying firm
is retained, the registration statement of the lobbying firm shall be
amended and filed to show that change prior to the lobbying firm's
attempting to influence any legislative or administrative action on
behalf of that person. Lobbying firms and lobbyist employers that,
during a regular session of the Legislature, cease all activity that
required registration shall file a notice of termination within 20
days after the cessation. Lobbying firms and lobbyist employers that,
at the close of a regular session of the Legislature, cease all
activity that required registration are not required to file a notice
of termination.
   (b) If any change occurs in any of the information contained in a
lobbyist certification or if a lobbyist terminates all activity that
required the certification, the lobbyist shall submit an amended
certification or notice of termination to his or her lobbying firm or
lobbyist employer for filing with the Secretary of State within the
time limits specified in subdivision (a). A lobbyist who, at the
close of a regular session of the Legislature, ceases all activity
that required certification is not required to file a notice of
termination.
   (c) Lobbyists and lobbying firms are subject to Section 86203 for
the earlier of six months after filing a notice of termination or six
months after the close of a regular session of the Legislature at
the close of which the lobbyist or lobbying firm ceased all activity
that required certification or registration.
  SEC. 10.  Section 86118 of the Government Code is amended to read:
   86118.  The original and one copy of each report required by
Sections 86114 and 86116 shall be filed with the Secretary of State,
unless filing in paper format is no longer required by Sections 84605
and 84606.
  SEC. 11.  Section 4.5 of this bill incorporates amendments to
Section 84218 of the Government Code proposed by both this bill and
AB 1514. It shall only become operative if (1) both bills are enacted
and become effective on or before January 1, 2010, (2) each bill
amends Section 84218 of the Government Code, and (3) this bill is
enacted after AB 1514, in which case Section 4 of this bill shall not
become operative.
  SEC. 12.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because 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.
  SEC. 13.  The Legislature finds and declares that this bill
furthers the purposes of the Political Reform Act of 1974 within the
meaning of subdivision (a) of Section 81012 of the Government Code.