Amended in Assembly August 6, 2013

Amended in Senate May 15, 2013

Amended in Senate May 6, 2013

Amended in Senate April 23, 2013

Amended in Senate April 17, 2013

Amended in Senate February 25, 2013

Senate Bill No. 2

Introduced by Senators Lieu and Yee

December 3, 2012

An act to amend Sections 84107, 84305.5, 84510, begin delete 85701, end delete 85704, begin delete 90003, end delete 91000, 91005, begin delete 91005.5,and 91013 end delete begin insert and 910 end insert begin insert 05.5 end insert of, and to add Section 84503.5 to, the Government Code, relating to the Political Reform Act of 1974.

LEGISLATIVE COUNSEL’S DIGEST

SB 2, as amended, Lieu. 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 and imposing other reporting and recordkeeping requirements on campaign committees. The act also imposes administrative, civil, and criminal fines and penalties for violations of its provisions.

This bill would increase certain administrative, civil, and criminal fines and penalties imposed by the act, as specified.

(2) The act also regulates advertisements, which are defined as any general or public advertisement that is authorized and paid for by a person or committee for the purpose of supporting or opposing a candidate for elective office or a ballot measure or ballot measures. The act places certain disclosure requirements on advertisements. In addition to other penalties imposed by the act, a fine of up to triple the amount of the cost of an advertisement can be imposed on a person who violates the disclosure requirements for advertisements.

This bill would require that television, video, or audio broadcast advertisements supporting or opposing a candidate or soliciting contributions in support of that purpose that are authorized by a candidate include a specified disclosure statement made by the candidate.

The bill would increase the maximum penalty for a violation of these provisions to 6 times the amount of the costs of the advertisement.

(3) The act regulates mass mailings, known as slate mailers, that support or oppose multiple candidates or ballot measures for an election. The act requires that each slate mailer identify the slate mailer organization or committee primarily formed to support or oppose one or more ballot measures that is sending the slate mailer, and to contain other specified information in specified formatting. The act requires that each candidate and each ballot measure that has paid to appear in the slate mailer be designated by an asterisk.

This bill would additionally require that a candidate or ballot measure appearing in the slate mailer as a result of a payment made by a 3rd party be designated by an “@,” and would require the notice to voters included on a slate mailer be revised to describe this new requirement. The bill would require that a slate mailer that is produced in a language other than English provide the notice to voters in that same language. The bill would require that a slate mailer provide the notice in both English and another language if a substantial portion of a slate mailer is produced in the other language.

(4) The act requires a ballot measure committee, within 30 days of designating the numerical order of propositions appearing on the ballot, to identify itself as committee for or against that numbered proposition in all required references.

This bill would reduce the amount of time in which a ballot measure committee must reference itself as a committee for or against a numbered proposition to within 10 days of designating the numerical order of propositions.

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(5) The act is administered and enforced by the Fair Political Practices Commission. The act authorizes the Commission to perform discretionary investigations and audits with respect to campaign and lobbying reports and statements that are filed with the Secretary of State. The act also authorizes any person residing in the jurisdiction to sue for injunctive relief to prevent violations or compel compliance with the act.

end delete begin delete

This bill would specify that the Commission may perform audits prior to the date of the election and prior to the date that a statement or report is required to be filed. The bill would authorize a person to challenge an audit by the Commission or any order resulting from an audit by seeking a writ of mandate, which would take priority over all other civil matters. The bill would specify that the Commission is authorized to seek an injunction to prevent a violation of or compel compliance with the act.

end delete begin delete

(6)

end delete

begin insert (5) end insert  The act makes a knowing or willful violation of its provisions a misdemeanor and subjects offenders to criminal penalties.

By expanding the scope of an existing crime, this bill would impose a state-mandated local program.

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.

begin delete

(7)

end delete

begin insert (6) end insert  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:

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SECTION 1.  

(a) The Legislature finds and declares all of the
following:

(1) The schedule by which elected officers, candidates,
committees, and slate mailer organizations are required to file
campaign statements should serve the goals of increased
transparency and simplified campaign disclosure requirements.

(2) The public benefits from transparency and timely disclosure
of information about contributions and expenditures.

(3) Candidates and campaigns benefit from a simple, easily
understood reporting schedule without a proliferation requirements
for special reports.

(4) A state filing schedule similar to that required in federal
campaigns can reduce the complexity of filing requirements for
some candidates and committees.

(b) It is the intent of the Legislature to enact legislation to
establish a schedule with more frequent, but more regular,
campaign statements that provide information when the public
most needs it and when it is most useful for enforcement of the
requirements of the Political Reform Act of 1974.

end delete

begin delete SEC. 2. end delete
begin insert SECTION 1. end insert   

Section 84107 of the Government Code is
amended to read:

84107.  

Within 10 days of the designation of the numerical
order of propositions appearing on the ballot, any committee which
is primarily formed to support or oppose a ballot measure, shall,
if supporting the measure, include the statement, “a committee for
Proposition ____,” or, if opposing the measure, include the
statement, “a committee against Proposition ____,” in any reference
to the committee required by law.

begin delete SEC. 3. end delete
begin insert SEC. 2. end insert   

Section 84305.5 of the Government Code is amended
to read:

84305.5.  

(a) No slate mailer organization or committee
primarily formed to support or oppose one or more ballot measures
shall send a slate mailer unless:

(1) The name, street address, and city of the slate mailer
organization or committee primarily formed to support or oppose
one or more ballot measures are shown on the outside of each piece
of slate mail and on at least one of the inserts included with each
piece of slate mail in no less than 8-point roman type which shall
be in a color or print which contrasts with the background so as
to be easily legible. A post office box may be stated in lieu of a
street address if the street address of the slate mailer organization
or the committee primarily formed to support or oppose one or
more ballot measure is a matter of public record with the Secretary
of State’s Political Reform Division.

(2) At the top or bottom of the front side or surface of at least
one insert or at the top or bottom of one side or surface of a
postcard or other self-mailer, there is a notice in at least 8-point
roman boldface type, which shall be in a color or print which
contrasts with the background so as to be easily legible, and in a
printed or drawn box and set apart from any other printed matter.
The notice shall consist of the following statement:

 

	NOTICE TO VOTERS
	THIS DOCUMENT WAS PREPARED BY (name of slate mailer organization or committee primarily formed to support or oppose one or more ballot measures), NOT AN OFFICIAL POLITICAL PARTY ORGANIZATION. Appearance in this mailer does not necessarily imply endorsement of others appearing in this mailer, nor does it imply endorsement of, or opposition to, any issues set forth in this mailer. Each item designated by an * has been paid for and authorized by the candidate or ballot measure indicated. Each item designated by an @ has been paid for by a person other than the candidate or ballot measure.

 

(3) The name, street address, city, and Internet Web site address,
if any, of the slate mailer organization or committee primarily
formed to support or oppose one or more ballot measures as
required by paragraph (1) and the notice required by paragraph
(2) may appear on the same side or surface of an insert.

(4) Each candidate and each ballot measure that has paid to
appear in the slate mailer is designated by an *. Each candidate
and ballot measure whose appearance has been paid for by a third
party is designated by an @. Any candidate or ballot measure that
has not paid to appear in the slate mailer, and whose appearance
has not been paid for by a third party, is not designated by an * or
@.

The * and @ required by this subdivision shall be of the same
type size, type style, color or contrast, and legibility as is used for
the name of the candidate or the ballot measure name or number
and position advocated to which the * or @ designation applies
except that in no case shall the * and @ be required to be larger
than 10-point boldface type. The designation shall immediately
follow the name of the candidate, or the name or number and
position advocated on the ballot measure where the designation
appears in the slate of candidates and measures. If there is no slate
listing, the designation shall appear at least once in at least 8-point
boldface type, immediately following the name of the candidate,
or the name or number and position advocated on the ballot
measure.

(5) The name of any candidate appearing in the slate mailer
who is a member of a political party differing from the political
party which the mailer appears by representation or indicia to
represent is accompanied, immediately below the name, by the
party designation of the candidate, in no less than 9-point roman
type which shall be in a color or print that contrasts with the
background so as to be easily legible. The designation shall not
be required in the case of candidates for nonpartisan office.

(6) If a slate mailer is produced entirely in a language other than
English, the notice to voters required pursuant to paragraph (2)
shall be produced in that language. If a substantial portion of a
slate mailer, as determined by the Commission by regulation, is
in a language other than English, the notice to voters required
pursuant to paragraph (2) shall be produced in both English and
the other language.

(b) For purposes of the designations required by paragraph (4)
of subdivision (a), the payment of any sum made reportable by
subdivision (c) of Section 84219 by or at the behest of a candidate
or committee, whose name or position appears in the mailer, to
the slate mailer organization or committee primarily formed to
support or oppose one or more ballot measures, shall constitute a
payment to appear, requiring the * designation. The payment shall
also be deemed to constitute authorization to appear in the mailer.

begin delete SEC. 4. end delete
begin insert SEC. 3. end insert   

Section 84503.5 is added to the Government Code, to
read:

84503.5.  

(a) A television or video broadcast advertisement
that supports or opposes a candidate or solicits contributions in
support of that purpose shall, if the advertisement is authorized by
a candidate or an agent of the candidate, include a statement in
which the candidate identifies himself or herself and states that
the candidate has approved the message. The candidate statement
shall be made using an unobscured, full-screen video of the
candidate making the statement, or by using an unobscured,
full-screen, and clearly identifiable photographic image of the
candidate that is displayed during an audio voiceover of the
candidate reading the statement.

(b) An audio broadcast advertisement that supports or opposes
a candidate or solicits contributions in support of that purpose
shall, if the advertisement is authorized by a candidate or an agent
of the candidate, include an audio statement in which the candidate
identifies himself or herself and states that the candidate has
approved the message.

begin delete SEC. 5. end delete
begin insert SEC. 4. end insert   

Section 84510 of the Government Code is amended
to read:

84510.  

(a) In addition to the remedies provided for in Chapter
11 (commencing with Section 91000) of this title, any person who
violates this article is liable in a civil or administrative action
brought by the commission or any person for a fine up to six times
the cost of the advertisement, including placement costs.

(b) The remedies provided in subdivision (a) shall also apply
to any person who purposely causes any other person to violate
any provision of this article or who aids and abets any other person
in a violation.

(c) If a judgment is entered against the defendant or defendants
in an action brought under this section, the plaintiff shall receive
50 percent of the amount recovered. The remaining 50 percent
shall be deposited in the General Fund of the state. In an action
brought by a local civil prosecutor, 50 percent shall be deposited
in the account of the agency bringing the action and 50 percent
shall be paid to the General Fund of the state.

begin delete

SEC. 6.  

Section 85701 of the Government Code is amended
to read:

85701.  

Any candidate or committee that receives a contribution
in violation of Section 84301 shall pay to the General Fund of the
state the amount of the contribution and pay to the Political
Disclosure, Accountability, Transparency, and Access Fund a fine
in the amount of 15 percent of the contribution.

end delete

begin delete SEC. 7. end delete
begin insert SEC. 5. end insert   

Section 85704 of the Government Code is amended
to read:

85704.  

A person may not make any contribution to a committee
on the condition or with the agreement that it will be contributed
to any particular candidate or ballot measure committee unless the
contribution is fully disclosed pursuant to Section 84302. A person
who makes a contribution to a committee that violates this section
shall pay to the General Fund of the state the amount of the
contribution and pay to the Political Disclosure, Accountability,
Transparency, and Access Fund a fine in the amount of 15 percent
of the contribution.

begin delete

SEC. 8.  

Section 90003 of the Government Code is amended
to read:

90003.  

(a) In addition to the audits and investigations required
by Section 90001, the Franchise Tax Board and the Commission
may make investigations and audits with respect to any reports or
statements required by Chapter 4 (commencing with Section
84100), Chapter 5 (commencing with Section 85100), or Chapter
6 (commencing with Section 86100).

(b) (1) Nothing in this chapter shall be construed to prohibit
the Commission from undertaking any audit authorized by this
section prior to the date of the election or prior to the date upon
which the report or statement is required to be filed. A candidate
or committee shall, during the audit, make all relevant records
available for immediate review by the Commission.

(2) A person who is subject to an audit authorized by this section
may contest the performance of the audit or an order issued by the
Commission as a result of an audit by seeking a writ of mandate.
Venue for the proceeding shall be exclusively in the County of
Sacramento. The action shall be given priority over all other civil
matters.

(3) In addition to any other remedies available to the
Commission, including injunctive relief pursuant to Section 91003,
the Commission may seek an injunction pursuant to Title 7
(commencing with Section 501) of Part 2 of the Code of Civil
Procedure to compel a person who is subject to an audit authorized
by this section to cooperate with the Commission in the
performance of the audit or to compel compliance with an order
of the Commission resulting from the audit. Notwithstanding any
other law, an appeal of an injunction issued in favor of the
Commission shall not result in a mandatory stay pending the
resolution of the appeal. A stay of an injunction pending resolution
of the appeal may be ordered at the discretion of the court issuing
the injunction.

end delete

begin delete SEC. 9. end delete
begin insert SEC. 6. end insert   

Section 91000 of the Government Code is amended
to read:

91000.  

(a) Any person who knowingly or willfully violates
any provision of this title is guilty of a misdemeanor.

(b) In addition to other penalties provided by law, a fine of up
to the greater of fifteen thousand dollars ($15,000) or five times
the amount the person failed to report properly or unlawfully
contributed, expended, gave begin insert , end insert or received may be imposed upon
conviction for each violation.

(c) Prosecution for violation of this title must be commenced
within four years after the date on which the violation occurred.

begin delete SEC. 10. end delete
begin insert SEC. 7. end insert   

Section 91005 of the Government Code is amended
to read:

91005.  

(a) Any person who makes or receives a contribution,
gift, or expenditure in violation of Section 84300, 84304, 86203,
or 86204 is liable in a civil action brought by the civil prosecutor
or by a person residing within the jurisdiction for an amount up to
one thousand five hundred dollars ($1,500) or five times the
amount of the unlawful contribution, gift, or expenditure,
whichever amount is greater.

(b) Any designated employee or public official specified in
Section 87200, except an elected state officer, who realizes an
economic benefit as a result of a violation of Section 87100 or of
a disqualification provision of a conflict of interest code is liable
in a civil action brought by the civil prosecutor or by a person
residing within the jurisdiction for an amount up to three times the
value of the benefit.

begin delete SEC. 11. end delete
begin insert SEC. 8. end insert   

Section 91005.5 of the Government Code is amended
to read:

91005.5.  

Any person who violates any provision of this title,
except Sections 84305, 84307, and 89001, for which no specific
civil penalty is provided, shall be liable in a civil action brought
by the commission or the district attorney pursuant to subdivision
(b) of Section 91001, or the elected city attorney pursuant to
Section 91001.5, for an amount up to seven thousand dollars
($7,000) per violation.

No civil action alleging a violation of this title may be filed
against a person pursuant to this section if the criminal prosecutor
is maintaining a criminal action against that person pursuant to
Section 91000.

The provisions of this section shall be applicable only as to
violations occurring after the effective date of this section.

begin delete

SEC. 12.  

Section 91013 of the Government Code is amended
to read:

91013.  

(a) If a person files an original statement or report after
the applicable deadline imposed by this title, he or she shall, in
addition to any other penalties or remedies established by this title,
be liable in the amount of thirty dollars ($30) per day after the
deadline until the statement or report is filed, to the officer with
whom the statement or report is required to be filed. Liability need
not be enforced by the filing officer if, on an impartial basis, he
or she determines that the late filing was not willful and that
enforcement of the liability will not further the purposes of this
title, except that no liability shall be waived if a statement or report
is not filed within 30 days for a statement of economic interest,
other than a candidate’s statement filed pursuant to Section 87201,
five days for a campaign statement required to be filed 12 days
before an election, and 10 days for all other statements or reports,
after the filing officer has sent specific written notice of the filing
requirement.

(b) If a person files a copy of a statement or report after the
applicable deadline imposed by this title, he or she shall, in addition
to any other penalties or remedies established by this title, be liable
in the amount of thirty dollars ($30) per day, starting 10 days, or
five days in the case of a campaign statement required to be filed
12 days before an election, after the filing officer has sent specific
written notice of the filing requirement and until the statement or
report is filed.

(c) The filing officer shall deposit any funds received under this
section into the general fund of the jurisdiction of which he or she
is an officer. No liability under this section shall exceed 150 percent
of the cumulative amount stated in the late statement or report, or
one thousand dollars ($1,000), whichever is greater.

end delete

begin delete SEC. 13. end delete
begin insert SEC. 9. end insert   

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.

begin delete SEC. 14. end delete
begin insert SEC. 10. end insert   

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.