Amended in Assembly August 21, 2013

Amended in Assembly August 7, 2013

Amended in Assembly July 2, 2013

Amended in Senate May 6, 2013

Amended in Senate April 9, 2013

Senate Bill No. 27

Introduced by Senator Correa

December 3, 2012

An act to amend Section 9084 of the Elections Code, and to amend Sections begin delete 81004, end delete begin insert 82015, end insert 82048.7, 84105, and 88001 of, and to add Sections 84222 and 84223 to, the Government Code, relating to the Political Reform Act of 1974.

LEGISLATIVE COUNSEL’S DIGEST

SB 27, as amended, Correa. Political Reform Act of 1974.

(1) Existing law, the Political Reform Act of 1974, provides for the comprehensive regulation of campaign financing, including requiring the reporting of campaign contributions and expenditures, as defined, and imposing other reporting and recordkeeping requirements on campaign committees, as defined. The Fair Political Practices Commission administers and enforces the act. A violation of the act’s provisions is punishable as a misdemeanor.

begin insert

This bill would revise the definition of “contribution” to include certain payments made by a person to a multipurpose organization, as specified.

end insert

This bill would require multipurpose organizations that meet specified criteria to comply with the registration and campaign reporting requirements of the act, as specified, including the disclosure of information relating to the organization’s donors.

This bill would require state ballot measure committees and state candidate committees that raise $1,000,000 or more for an election to maintain an accurate list of the committee’s top 10 contributors. This bill would require a committee to provide accurate lists of these contributors to the Commission, and would require the Commission to post the top 10 contributor lists on its Internet Web site, as specified, and to post updates to those lists when prescribed events occur. The bill would require the Commission to provide copies of the top 10 contributor lists to the Secretary of State, at the Secretary of State’s request, for purposes of posting those lists on the Secretary of State’s Internet Web site.

(2) The act requires a candidate or committee that receives contributions of $5,000 or more from any person to inform the contributor within 2 weeks that he or she may be subject to the act’s reporting requirements.

This bill would require that the candidate or committee inform the contributor within one week for a contribution of $10,000 or more received during the period in which late contribution reports must be filed. The bill would also require the notifications to reference the reporting requirements for multipurpose organizations.

(3) Existing law requires the Secretary of State to prepare a ballot pamphlet that includes specified information with respect to an election.

This bill would require the Secretary of State to include in the ballot pamphlet a written explanation of the top 10 contributor lists required by the bill, including a description of the Internet Web sites where those lists would be available to the public.

(4) 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.

(5) 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.

Vote: ²⁄₃. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

SECTION 1.  

The Legislature finds and declares all of the
following:

(a) Multipurpose organizations, including out-of-state
organizations, are increasing their political activities in California,
and it is important to clarify how disclosure requirements apply
to these organizations to ensure that the public receives the required
information in an accurate, timely, and transparent manner.

(b) The Ninth Circuit Court of Appeals, in California Pro-Life
Council, Inc. v. Randolph (9th Cir. 2007) 507 F.3d 1172, upheld
the disclosure of a multipurpose organization’s political activities,
as required by regulations of the Fair Political Practices
Commission.

(c) The disclosure of donors to multipurpose organizations that
make contributions or expenditures to support or oppose California
candidates and ballot measures serves the following important
purposes:

(1) It provides the electorate with information as to where
campaign money comes from, increasing its ability to identify the
supporters of a candidate or ballot measure.

(2) It deters actual corruption and avoids the appearance of
corruption by providing increased transparency of contributions
and expenditures.

(3) It is an important means of gathering the information
necessary to detect violations of the Political Reform Act of 1974.

(d) The people of California have a compelling interest in
receiving clear and easy to use information about who is financing
state ballot measures and candidate independent expenditure
committees.

(e) It is therefore the intent of the Legislature to strengthen the
laws requiring the disclosure of contributions and expenditures in
California elections by multipurpose organizations and to require
committees that raise or spend one million dollars ($1,000,000)
or more to support or oppose state ballot measures or make
independent expenditures on behalf of a state candidate to disclose
a list of their top 10 contributors on the Internet Web site of the
Fair Political Practices Commission.

SEC. 2.  

Section 9084 of the Elections Code is amended to read:

9084.  

The ballot pamphlet shall contain all of the following:

(a) A complete copy of each state measure.

(b) A copy of the specific constitutional or statutory provision,
if any, that each state measure would repeal or revise.

(c) A copy of the arguments and rebuttals for and against each
state measure.

(d) A copy of the analysis of each state measure.

(e) Tables of contents, indexes, art work, graphics, and other
materials that the Secretary of State determines will make the ballot
pamphlet easier to understand or more useful for the average voter.

(f) A notice, conspicuously printed on the cover of the ballot
pamphlet, indicating that additional copies of the ballot pamphlet
will be mailed by the county elections official upon request.

(g) A written explanation of the judicial retention procedure as
required by Section 9083.

(h) The Voter Bill of Rights pursuant to Section 2300.

(i) If the ballot contains an election for the office of United
States Senator, information on candidates for United States Senator.
A candidate for United States Senator may purchase the space to
place a statement in the state ballot pamphlet that does not exceed
250 words. The statement may not make any reference to any
opponent of the candidate. The statement shall be submitted in
accordance with timeframes and procedures set forth by the
Secretary of State for the preparation of the state ballot pamphlet.

(j) If the ballot contains a question on the confirmation or
retention of a justice of the Supreme Court, information on justices
of the Supreme Court who are subject to confirmation or retention.

(k) If the ballot contains an election for the offices of President
and Vice President of the United States, a notice that refers voters
to the Secretary of State’s Internet Web site for information about
candidates for the offices of President and Vice President of the
United States.

(l) A written explanation of the appropriate election procedures
for party-nominated, voter-nominated, and nonpartisan offices as
required by Section 9083.5.

(m) A written explanation of the top 10 contributor lists required
by Section 84223 of the Government Code, including a description
of the Internet Web sites where those lists are available to the
public.

begin delete

SEC. 3.  

Section 81004 of the Government Code is amended
to read:

81004.  

(a) Each report or statement filed under this title shall
be signed under penalty of perjury and verified by the filer. The
verification shall state that the filer has used all reasonable
diligence in the preparation of the report or statement and that to
the best of his or her knowledge it is true and complete.

(b) A report or statement filed by a committee that qualifies
under subdivision (a) of Section 82013 shall be signed and verified
by the treasurer, and a report or statement filed by any other person
shall be signed and verified by the filer. If the filer is an entity
other than an individual, the report or statement shall be signed
and verified by a responsible officer of the entity or by an attorney
or a certified public accountant acting as agent for the entity. A
report or statement filed by a committee that qualifies under
subdivision (b) or (c) of Section 82013 shall be signed and verified
by a responsible officer of the committee. Every person who signs
and verifies any report or statement required to be filed under this
title which contains material matter which he or she knows to be
false is guilty of perjury.

end delete

begin insert

begin insert SEC. end insert begin insert 3 end insert begin insert . end insert   

end insert

begin insert Section 82015 of the end insert begin insert Government Code end insert begin insert is amended to
read: end insert

82015.  

(a) “Contribution” means a payment, a forgiveness of
a loan, a payment of a loan by a third party, or an enforceable
promise to make a payment except to the extent that full and
adequate consideration is received, unless it is clear from the
surrounding circumstances that it is not made for political purposes.

(b) (1) A payment made at the behest of a committee as defined
in subdivision (a) of Section 82013 is a contribution to the
committee unless full and adequate consideration is received from
the committee for making the payment.

(2) A payment made at the behest of a candidate is a contribution
to the candidate unless the criteria in either subparagraph (A) or
(B) are satisfied:

(A) Full and adequate consideration is received from the
candidate.

(B) It is clear from the surrounding circumstances that the
payment was made for purposes unrelated to his or her candidacy
for elective office. The following types of payments are presumed
to be for purposes unrelated to a candidate’s candidacy for elective
office:

(i) A payment made principally for personal purposes, in which
case it may be considered a gift under the provisions of Section
82028. Payments that are otherwise subject to the limits of Section
86203 are presumed to be principally for personal purposes.

(ii) A payment made by a state, local, or federal governmental
agency or by a nonprofit organization that is exempt from taxation
under Section 501(c)(3) of the Internal Revenue Code.

(iii) A payment not covered by clause (i), made principally for
legislative, governmental, or charitable purposes, in which case it
is neither a gift nor a contribution. However, payments of this type
that are made at the behest of a candidate who is an elected officer
shall be reported within 30 days following the date on which the
payment or payments equal or exceed five thousand dollars
($5,000) in the aggregate from the same source in the same
calendar year in which they are made. The report shall be filed by
the elected officer with the elected officer’s agency and shall be
a public record subject to inspection and copying pursuant to
subdivision (a) of Section 81008. The report shall contain the
following information: name of payor, address of payor, amount
of the payment, date or dates the payment or payments were made,
the name and address of the payee, a brief description of the goods
or services provided or purchased, if any, and a description of the
specific purpose or event for which the payment or payments were
made. Once the five-thousand-dollar ($5,000) aggregate threshold
from a single source has been reached for a calendar year, all
payments for the calendar year made by that source must be
disclosed within 30 days after the date the threshold was reached
or the payment was made, whichever occurs later. Within 30 days
after receipt of the report, state agencies shall forward a copy of
these reports to the Fair Political Practices Commission, and local
agencies shall forward a copy of these reports to the officer with
whom elected officers of that agency file their campaign
statements.

(C) For purposes of subparagraph (B), a payment is made for
purposes related to a candidate’s candidacy for elective office if
all or a portion of the payment is used for election-related activities.
For purposes of this subparagraph, “election-related activities”
shall include, but are not limited to, the following:

(i) Communications that contain express advocacy of the
nomination or election of the candidate or the defeat of his or her
opponent.

(ii) Communications that contain reference to the candidate’s
candidacy for elective office, the candidate’s election campaign,
or the candidate’s or his or her opponent’s qualifications for
elective office.

(iii) Solicitation of contributions to the candidate or to third
persons for use in support of the candidate or in opposition to his
or her opponent.

(iv) Arranging, coordinating, developing, writing, distributing,
preparing, or planning of any communication or activity described
in clause (i), (ii), or (iii).

(v) Recruiting or coordinating campaign activities of campaign
volunteers on behalf of the candidate.

(vi) Preparing campaign budgets.

(vii) Preparing campaign finance disclosure statements.

(viii) Communications directed to voters or potential voters as
part of activities encouraging or assisting persons to vote if the
communication contains express advocacy of the nomination or
election of the candidate or the defeat of his or her opponent.

(D) A contribution made at the behest of a candidate for a
different candidate or to a committee not controlled by the
behesting candidate is not a contribution to the behesting candidate.

(3) A payment made at the behest of a member of the Public
Utilities Commission, made principally for legislative,
governmental, or charitable purposes, is not a contribution.
However, payments of this type shall be reported within 30 days
following the date on which the payment or payments equal or
exceed five thousand dollars ($5,000) in the aggregate from the
same source in the same calendar year in which they are made.
The report shall be filed by the member with the Public Utilities
Commission and shall be a public record subject to inspection and
copying pursuant to subdivision (a) of Section 81008. The report
shall contain the following information: name of payor, address
of payor, amount of the payment, date or dates the payment or
payments were made, the name and address of the payee, a brief
description of the goods or services provided or purchased, if any,
and a description of the specific purpose or event for which the
payment or payments were made. Once the five-thousand-dollar
($5,000) aggregate threshold from a single source has been reached
for a calendar year, all payments for the calendar year made by
that source must be disclosed within 30 days after the date the
threshold was reached or the payment was made, whichever occurs
later. Within 30 days after receipt of the report, the Public Utilities
Commission shall forward a copy of these reports to the Fair
Political Practices Commission.

(c) “Contribution” includes the purchase of tickets for events
such as dinners, luncheons, rallies, and similar fundraising events;
the candidate’s own money or property used on behalf of his or
her candidacy other than personal funds of the candidate used to
pay either a filing fee for a declaration of candidacy or a candidate
statement prepared pursuant to Section 13307 of the Elections
Code; the granting of discounts or rebates not extended to the
public generally or the granting of discounts or rebates by television
and radio stations and newspapers not extended on an equal basis
to all candidates for the same office; the payment of compensation
by any person for the personal services or expenses of any other
person if the services are rendered or expenses incurred on behalf
of a candidate or committee without payment of full and adequate
consideration.

(d) “Contribution” further includes any transfer of anything of
value received by a committee from another committee, unless
full and adequate consideration is received.

(e) “Contribution” does not include amounts received pursuant
to an enforceable promise to the extent those amounts have been
previously reported as a contribution. However, the fact that those
amounts have been received shall be indicated in the appropriate
campaign statement.

(f) “Contribution” does not include a payment made by an
occupant of a home or office for costs related to any meeting or
fundraising event held in the occupant’s home or office if the costs
for the meeting or fundraising event are five hundred dollars ($500)
or less.

(g) Notwithstanding the foregoing definition of “contribution,”
the term does not include volunteer personal services or payments
made by any individual for his or her own travel expenses if the
payments are made voluntarily without any understanding or
agreement that they shall be, directly or indirectly, repaid to him
or her.

(h) “Contribution” further includes the payment of public
moneys by a state or local governmental agency for a
communication to the public that satisfies both of the following:

(1) The communication expressly advocates the election or
defeat of a clearly identified candidate or the qualification, passage,
or defeat of a clearly identified measure, or, taken as a whole and
in context, unambiguously urges a particular result in an election.

(2) The communication is made at the behest of the affected
candidate or committee.

begin insert

(i) “Contribution” further includes a payment made by a person
to a multipurpose organization as defined and described in Section
84222.

end insert

SEC. 4.  

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, that 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.

begin delete

(c) A sponsor that is subject to the reporting requirements of
subdivision (f) of Section 84222 and makes contributions or
expenditures from the sponsor’s treasury funds shall report those
contributions or expenditures either on the campaign statements
of the sponsored committee, pursuant to subdivision (f) of Section
84222, or on the sponsor’s own campaign statements.

end delete begin insert

(c) A sponsor that is a multipurpose organization, as defined
in subdivision (a) of Section 84222, and that makes contributions
or expenditures from its general treasury funds shall comply with
Section 84222.

end insert

SEC. 5.  

Section 84105 of the Government Code is amended
to read:

84105.  

A candidate or committee that receives contributions
of five thousand dollars ($5,000) or more from any person shall
inform the contributor within two weeks of receipt of the
contributions that he or she may be required to file campaign
reports, and shall include a reference to the filing requirements for
multipurpose organizations under Section 84222. However, a
candidate or committee that receives a contribution of ten thousand
dollars ($10,000) or more from any person during any period in
which late contribution reports are required to be filed pursuant to
Section 84203 shall provide the information to the contributor
within one week. The notification required by this section is not
required to be sent to any contributor who has an identification
number assigned by the Secretary of State issued pursuant to
Section 84101.

SEC. 6.  

Section 84222 is added to the Government Code, to
read:

84222.  

(a) For purposes of this title, “multipurpose
organization” means an organization described in Sections
501(c)(3) to 501(c)(10), inclusive, of the Internal Revenue Code
and that is exempt from taxation under Section 501(a) of the
Internal Revenue Code, a federal or out-of-state political
organization, a trade association, a professional association, a civic
organization, a religious organization, a fraternal society, an
educational institution, or any other association or group of persons
acting in concert, that is operating for purposes other than making
contributions or expenditures. “Multipurpose organization” does
not include a business entity, an individual, or a federal candidate’s
authorized committee, as defined in Section 431 of Title 2 of the
United States Code, that is registered and filing reports pursuant
to the Federal Election Campaign Act of 1971.

(b) A multipurpose organization that makes expenditures or
contributions and does not qualify as a committee pursuant to
subdivision (c) may qualify as an independent expenditure
committee or major donor committee if the multipurpose
organization satisfies subdivision (b) or (c) of Section 82013.

(c)  begin delete (1) end delete begin delete   end delete Except as provided in begin delete paragraph (2) end delete begin insert subparagraph (A)
of paragraph (5) end insert , a multipurpose organization is a recipient
committee within the meaning of subdivision (a) of Section 82013
only under one or more of the following circumstances:

begin delete

(A)

end delete

begin insert (1) end insert  The multipurpose organization is a political committee
registered with the Federal Election Commission, except as
provided in subdivision (a) of this section, or a political committee
registered with another state, and the multipurpose organization
makes contributions or expenditures in this state in an amount
equal to or greater than the amount identified in subdivision (a) of
Section 82013.

begin delete

(B)

end delete

begin insert (2) end insert  The multipurpose organization solicits and receives payments
from donors in an amount equal to or greater than the amount
identified in subdivision (a) of Section 82013 for the purpose of
making contributions or expenditures.

begin delete

(C)

end delete

begin insert (3) end insert  The multipurpose organization accepts payments from
donors in an amount equal to or greater than the amount identified
in subdivision (a) of Section 82013 subject to a condition,
agreement, or understanding with the donor that all or a portion
of the payments may be used for making contributions or
expenditures.

begin delete

(D)

end delete

begin insert (4) end insert  The multipurpose organization has existing funds from a
donor and a subsequent agreement or understanding is reached
with the donor that all or a portion of the funds may be used for
making contributions or expenditures in an amount equal to or
greater than the amount identified in subdivision (a) of Section
82013. The date of the subsequent agreement or understanding is
deemed to be the date of receipt of the payment.

begin delete

(E)

end delete

begin insert (5) end insert  The multipurpose organization makes contributions or
expenditures totaling more than fifty thousand dollars ($50,000)
in begin delete the preceding end delete begin insert a period of end insert 12 months or more than one hundred
thousand dollars ($100,000) in begin delete any consecutive four calendar year
period end delete begin insert a period of four end insert begin insert consecutive calendar years end insert .

begin delete (2) end delete begin delete   end delete (A) A multipurpose organization shall not qualify as a
committee within the meaning of subdivision (a) of Section 82013
pursuant to this begin delete subdivision end delete begin insert paragraph end insert if the multipurpose
organization makes contributions or expenditures using only
available nondonor funds. A multipurpose organization that makes
contributions or expenditures with nondonor funds shall begin delete identify end delete
begin insert briefly describe end insert the source begin delete or sources end delete of the funds used begin delete for the
contribution or expenditure end delete on its major donor or independent
expenditure report.

(B) For purposes of this begin delete subdivision end delete begin insert paragraph end insert , “nondonor
funds” means investment income, including capital gains, or
income earned from providing goods, services, or facilities,
whether related or unrelated to the multipurpose organization’s
program, sale of assets, or other receipts that are not begin delete derived from end delete
donations.

(d) A multipurpose organization that is a committee pursuant
to begin delete subparagraph (A) of end delete paragraph (1) of subdivision (c) shall
comply with the registration and reporting requirements of this
chapter, subject to the following:

(1) The multipurpose organization is not required to comply
with subdivision (k) of Section 84211 for contributions and
expenditures made to influence federal or out-of-state elections,
which shall instead be reported as a single expenditure and be
described as such on the campaign statement.

(2) A multipurpose organization registered with the Federal
Election Commission is not subject to subdivisions (d) and (f) of
Section 84211 but shall disclose the total amount of contributions
received pursuant to subdivision begin delete (c) end delete begin insert (a) end insert of Section 84211, and shall
disclose the multipurpose organization’s name and identification
number registered with the Federal Election Commission on the
campaign statement.

(e) (1) A multipurpose organization that is a committee pursuant
to begin delete subparagraph (B), (C), (D), or (E) of paragraph (1) end delete begin insert paragraph
(2), (3), (4), or (5) end insert of subdivision (c) shall comply with the
registration and reporting requirements of this chapter, subject to
the following, except that if the multipurpose organization is the
sponsor of a committee as described in subdivision (f) it may report
required information on its sponsored committee statement
pursuant to subdivision (f):

(A) The multipurpose organization shall register in the calendar
year in which it satisfies any of the criteria in begin delete paragraph (1) of end delete
subdivision (c). The statement of organization filed pursuant to
Section 84101 shall indicate that the organization is filing pursuant
to this section as a multipurpose organization and state the
organization’s nonprofit tax exempt status, if any. The statement
of organization shall also describe the organization’s mission or
most significant activities, and describe the organization’s political
activities. A multipurpose organization may comply with the
requirement to describe the mission or significant activities and
political activities by referencing where the organization’s Internal
Revenue Service Return of Organization Exempt From Income
Tax form may be accessed.

(B) Except as provided in this subparagraph, the registration of
a multipurpose organization that meets the criteria of begin delete subparagraph
(E) of paragraph (1) end delete begin insert paragraph (5) end insert of subdivision (c) shall
terminate automatically on December 31 of the calendar year in
which the multipurpose organization is registered. The
multipurpose organization shall not be required to file a semiannual
statement pursuant to subdivision (b) of Section 84200, unless the
multipurpose organization has undisclosed contributions or
expenditures to report, in which case termination shall occur
automatically upon filing the semiannual statement that is due no
later than January 31. After the multipurpose organization’s
registration has terminated, the multipurpose organization’s
reporting obligations are complete, unless the organization qualifies
as a committee for purposes of subdivision (a) of Section 82013
again in the following calendar year pursuant to subdivision (c)
of this section. Notwithstanding this subdivision, a multipurpose
organization may elect to remain registered as a committee by
submitting written notification to the Secretary of State prior to
the end of the calendar year.

(C) A multipurpose organization shall report all contributions
received that satisfy the criteria of begin delete subparagraph (B), (C), or (D)
of paragraph (1) end delete begin insert paragraph (2), (3), or (4) end insert of subdivision (c) of
this section in the manner required by subdivision (f) of Section
84211, and for the balance of its contributions or expenditures
shall further report contributors based on a last in, first out
accounting method.

(2) A multipurpose organization reporting pursuant to this
subdivision shall disclose total contributions received in an amount
equal to the multipurpose organization’s total contributions and
expenditures made in the reporting period. When a multipurpose
organization reports donors based on the last in, first out accounting
method, it shall begin insert attribute to and end insert include the information required
by subdivision (f) of Section 84211 for any donor who donates
one thousand dollars ($1,000) or more in a calendar year, except
for the following:

begin delete

(A) A donor who conditions the donation in a manner that
prohibits the multipurpose organization from using the donation
for contributions and expenditures.

end delete begin insert

(A) A donor who designates or restricts the donation for
purposes other than contributions or expenditures.

end insert begin insert

(B) A donor who prohibits the multipurpose organization’s use
of its donation for contributions or expenditures.

end insert begin delete

(B)

end delete

begin insert (C) end insert  A private foundation, as defined by subdivision (a) of
Section 509 of the Internal Revenue Code, that provides a grant
that does not constitute a taxable expenditure for purposes of
paragraph (1) or (2) of subdivision (d) of Section 4945 of the
Internal Revenue Code.

begin delete

(3) A multipurpose organization that is a committee pursuant
to subparagraph (E) of paragraph (1) of subdivision (c) shall not
be required to report contributions or expenditures received, or
disclose the donors for those contributions or expenditures, if the
contributions or expenditures were made in any prior calendar year
in which the multipurpose organization did not qualify as a
committee pursuant to subparagraph (E) of paragraph (1) of
subdivision (c).

end delete begin insert

(3) A multipurpose organization that qualifies as a committee
pursuant to paragraph (5) of subdivision (c) shall not be required
to include contributions or expenditures made in a prior calendar
year on the reports filed for the calendar year in which the
multipurpose organization qualifies as a committee.

end insert

(4) A contributor identified and reported in the manner provided
in subparagraph (C) of paragraph (1) that is a multipurpose
organization and receives contributions that satisfy the criteria in
subdivision (c) shall be subject to the requirements of this
subdivision.

(5) The commission shall adopt regulations establishing notice
requirements and reasonable filing deadlines for donors reported
as contributors based on the last in, first out accounting method.

(f) A multipurpose organization that is the sponsor of a
committee as defined in Section 82048.7, that is a membership
organization, begin delete and end delete that makes all of its contributions and
expenditures from funds derived from dues, assessments, fees, and
similar payments that do not exceed ten thousand dollars ($10,000)
per calendar year from a single source begin delete shall end delete begin insert , and that elects to end insert
report its contributions and expenditures on its sponsored
committee’s campaign statement begin insert pursuant to paragraph (1) of
subdivision (e) shall report end insert as follows:

(1) The sponsored committee shall report all contributions and
expenditures made from the sponsor’s treasury funds on statements
and reports filed by the committee. The sponsor shall use a last in,
first out accounting method and disclose the information required
by subdivision (f) of Section 84211 for any person who pays dues,
assessments, fees, or similar payments of one thousand dollars
($1,000) or more to the sponsor’s treasury funds in a calendar year
and shall disclose all contributions and expenditures made, as
required by subdivision (k) of Section 84211, on the sponsored
committee’s campaign statements.

(2) The sponsored committee shall report all other contributions
and expenditures in support of the committee by the sponsor, its
intermediate units, and the members of those begin delete intermediate units end delete
begin insert entities end insert . A sponsoring organization makes contributions and
expenditures in support of its sponsored committee when it
provides the committee with money from its treasury funds, with
the exception of establishment or administrative costs. With respect
to dues, assessments, fees, and similar payments channeled through
the sponsor or an intermediate unit to a sponsored committee, the
original source of the dues, assessments, fees, and similar payments
is the contributor.

(3) A responsible officer of the sponsor, as well as the treasurer
of the sponsored committee, shall verify the committee’s campaign
statement pursuant to begin delete section end delete begin insert Section end insert 81004.

(g) For purposes of this section, “last in, first out accounting
method” means an accounting method by which contributions and
expenditures are attributed to the multipurpose organization’s
contributors in reverse chronological order beginning with the
most recent of its contributors or, if there are any prior
contributions or expenditures, beginning with the most recent
contributor for which unattributed contributions remain.

SEC. 7.  

Section 84223 is added to the Government Code, to
read:

84223.  

(a) A committee primarily formed to support or oppose
a state ballot measure or state candidate that raises one million
dollars ($1,000,000) or more for an election shall maintain an
accurate list of the committee’s top 10 contributors, as specified
by Commission regulations. A current list of the top 10 contributors
shall be provided to the Commission for disclosure on the
Commission’s Internet Web site, as provided in subdivision (c).

(b) (1) Except as provided in paragraph (4), the list of top 10
contributors shall identify the names of the 10 persons who have
made the largest cumulative contributions to the committee, the
total amount of each person’s contributions, the city and state of
the person, the person’s committee identification number, if any,
and any other information deemed necessary by the Commission.
If any of the top 10 contributors identified on the list are
committees pursuant to subdivision (a) of Section 82013, the
Commission may require, by regulation, that the list also identify
the top 10 contributors to those contributing committees.

(2) (A) A committee primarily formed to support or oppose a
state ballot measure shall count the cumulative amount of
contributions received by the committee from a person for the
period beginning 12 months prior to the date the committee made
its first expenditure to qualify, support, or oppose the measure and
ending with the current date.

(B) A committee primarily formed to support or oppose a state
candidate shall count the cumulative amount of contributions
received by the committee from a person for the primary and
general elections combined.

(3) The aggregation rules of Section 85311 and any
implementing regulations adopted by the Commission shall apply
in identifying the persons who have made the top 10 cumulative
contributions to a committee.

(4) A person who makes contributions to a committee in a
cumulative amount of less than ten thousand dollars ($10,000)
shall not be identified or disclosed as a top 10 contributor to a
committee pursuant to this section.

(c) (1) The Commission shall adopt regulations to govern the
manner in which the Commission shall display top 10 contributor
lists provided by a committee that is subject to this section, and
the Commission shall post the top 10 contributor lists on its Internet
Web site in the manner prescribed by those regulations. The
Commission shall provide the top 10 contributor lists to the
Secretary of State, upon the request of the Secretary of State, for
the purpose of additionally posting the contributor lists on the
Secretary of State’s Internet Web site.

(2) A committee shall provide an updated top 10 contributor
list to the Commission when any of the following occurs:

(A) A new person qualifies as a top 10 contributor to the
committee.

(B) A person who is an existing top 10 contributor makes
additional contributions to the committee.

(C) A change occurs that alters the relative ranking order of the
top 10 contributors.

(3) The 10 persons who have made the largest cumulative
contributions to a committee shall be listed in order from largest
contribution amount to smallest amount. If two or more
contributors of identical amounts meet the threshold for inclusion
in the list of top 10 contributors, the order of disclosure shall be
made beginning with the most recent contributor of that amount.

(4) The Commission shall post or update a top 10 contributor
list within five business days or, during the 16 days before the
election, within 48 hours of a contributor qualifying for the list or
of any change to the list.

(d) In listing the top 10 contributors, a committee shall use
reasonable efforts to identify and state the actual individuals or
corporations that are the true sources of the contributions made to
the committee from other persons or committees.

(e) In addition to any other lists that the Commission is required
to post on its Internet Web site, the Commission shall compile,
maintain, and display on its Internet Web site a current list of the
top 10 contributors supporting and opposing each state ballot
measure, as prescribed by Commission regulations.

SEC. 8.  

Section 88001 of the Government Code is amended
to read:

88001.  

The ballot pamphlet shall contain all of the following:

(a) A complete copy of each state measure.

(b) A copy of the specific constitutional or statutory provision,
if any, that would be repealed or revised by each state measure.

(c) A copy of the arguments and rebuttals for and against each
state measure.

(d) A copy of the analysis of each state measure.

(e) Tables of contents, indexes, art work, graphics, and other
materials that the Secretary of State determines will make the ballot
pamphlet easier to understand or more useful for the average voter.

(f) A notice, conspicuously printed on the cover of the ballot
pamphlet, indicating that additional copies of the ballot pamphlet
will be mailed by the county elections official upon request.

(g) A written explanation of the judicial retention procedure as
required by Section 9083 of the Elections Code.

(h) The Voter Bill of Rights pursuant to Section 2300 of the
Elections Code.

(i) If the ballot contains an election for the office of United
States Senator, information on candidates for United States Senator.
A candidate for United States Senator may purchase the space to
place a statement in the state ballot pamphlet that does not exceed
250 words. The statement may not make any reference to any
opponent of the candidate. The statement shall be submitted in
accordance with timeframes and procedures set forth by the
Secretary of State for the preparation of the state ballot pamphlet.

(j) If the ballot contains a question as to the confirmation or
retention of a justice of the Supreme Court, information on justices
of the Supreme Court who are subject to confirmation or retention.

(k) If the ballot contains an election for the offices of President
and Vice President of the United States, a notice that refers voters
to the Secretary of State’s Internet Web site for information about
candidates for the offices of President and Vice President of the
United States.

(l) A written explanation of the appropriate election procedures
for party-nominated, voter-nominated, and nonpartisan offices as
required by Section 9083.5 of the Elections Code.

(m) A written explanation of the top 10 contributor lists required
by Section 84223, including a description of the Internet Web sites
where those lists are available to the public.

SEC. 9.  

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. 10.  

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.