Amended in Senate April 22, 2013

Amended in Senate March 14, 2013

Senate Bill No. 3

Introduced by Senators Yee and Lieu

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(Coauthors: Assembly Members Pan and Ting)

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December 3, 2012

An act to amend Sections 84100, 84101, 84103, 84108, 84200.6, 84203, 84203.3, 84204, 84215, 84220, 84300, 84602, 84605, and 91013 of, to amend and renumber Sections 82036 and 82036.5 of, and to add begin delete Sections 84202.8, 84202.9, and end delete begin insert Section end insert 84620 to, the Government Code, relating to the Political Reform Act of 1974.

LEGISLATIVE COUNSEL’S DIGEST

SB 3, as amended, Yee. 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. A violation of the act’s provisions is punishable as a misdemeanor.

This bill would revise the terms “late contribution” and “late independent expenditure,” as defined in the act, to “election-cycle contribution” and “election-cycle independent expenditure,” respectively, and would make conforming changes.

The bill would also increase the fines and penalties imposed for campaign statements and reports that are filed late.

(2) The act requires each committee to file a statement of organization within 10 days of becoming a committee. The act also requires a committee to file an amended statement of organization whenever there is a change to the information contained in the statement of organization. The act requires certain committees to file the original statement with the Secretary of State and a copy to be filed with the local filing officer. The act requires the Secretary of State to forward a copy of the statement of organization to the county elections official, and for the county elections official to forward a copy to appropriate city clerks. The act requires the Secretary of State, in consultation with the Commission, to develop online and electronic filing processes for specified entities.

This bill would require that the statement and any amendments be filed with the Secretary of State by online or electronic means. The bill would reduce the time in which the statement of organization must be filed to 5 days. The bill would authorize a committee to satisfy the local filing requirement by online or electronic means if the local filing officer accepts filing by online or electronic means. This bill would specify that the Secretary of State and the county elections officials forward copies of the statement or organization by online or electronic means.

This bill would also require the Secretary of State to begin delete work toward the development of end delete begin insert develop end insert a single, statewide electronic filing system that consolidates the filing of all state and local campaign statements and reports into one searchable database that meets specified criteria. The bill would require the Secretary of State to develop a feasibility study report for the electronic filing system by December 31, 2014, to develop a funding plan, to engage in fundraising, and to complete work on the electronic filing system by December 31, 2018.

(3) The act requires each committee to have a designated treasurer who is identified in the statement of organization. A committee may not make an expenditure without the authorization of the treasurer.

This bill would require a treasurer for a committee or committees that have made cumulative contributions or expenditures in excess of $250,000 to complete an online certification course, designed and administered by the Commission, that addresses the statutes and regulations governing the financing of campaigns and the duties and responsibilities of a treasurer within 20 business days after being designated as the treasurer, or within 20 business days of exceeding the $250,000 threshold if the committees have not exceeded the threshold at the time the treasurer is designated. The bill would require the treasurer to make certain verifications under penalty of perjury. By creating a new crime, this bill would impose a state-mandated local program.

(4) The act requires a committee to file certain special campaign statements, in addition to semi-annual and preelection campaign statements. The act requires certain officers to file these statements by online or electronic means and a copy in paper format with the Secretary of State.

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This bill would establish a postelection campaign statement that elected officers, candidates, and committees would be required to file after an election covering a time period starting on the day after the closing date of the last campaign statement required to be filed prior to the election and ending on the final calendar day of the month in which the election occurred. The bill would also establish a cumulative campaign statement to be filed by certain officers, candidates, and committees after an election that occurs in an even-numbered year that covers a time period of 2 calendar years. The bill would require the Fair Political Practices Commission to adopt regulations with respect to filing cumulative campaign statements for special elections and elections in odd-numbered years.

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This bill would repeal the requirement that a committee file a paper copy of a campaign statement in addition to the online or electronic filing.

(5) The act requires certain reports, such as late contribution and late independent expenditure reports, to be filed within 24 hours by facsimile transmission, guaranteed overnight delivery, or personal delivery.

This bill would additionally authorize certain reports that have a 24-hour filing deadline to be filed by online transmission.

(6) 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.

(7) 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.  

Section 82036 of the Government Code is
amended and renumbered to read:

82022.5.  

“Election-cycle contribution” means any of the
following:

(a) A contribution, including a loan, that totals in the aggregate
one thousand dollars ($1,000) or more and is made to or received
by a candidate, a controlled committee, or a committee formed or
existing primarily to support or oppose a candidate or measure
within 90 days before the date of the election at which the candidate
or measure is to be voted on. For purposes of the Board of
Administration of the Public Employees’ Retirement System and
the Teachers’ Retirement Board, “the date of the election” is the
deadline to return ballots.

(b) A contribution, including a loan, that totals in the aggregate
one thousand dollars ($1,000) or more and is made to or received
by a political party committee, as defined in Section 85205, within
90 days before the date of a state election.

SEC. 2.  

Section 82036.5 of the Government Code is amended
and renumbered to read:

82022.7.  

“Election-cycle independent expenditure” means an
independent expenditure that totals in the aggregate one thousand
dollars ($1,000) or more and is made for or against a specific
candidate or measure involved in an election within 90 days before
the date of the election. For purposes of the Board of
Administration of the Public Employees’ Retirement System and
the Teachers’ Retirement Board, “the date of the election” is the
deadline to return ballots.

SEC. 3.  

Section 84100 of the Government Code is amended
to read:

84100.  

(a) Every committee shall have a treasurer. No
expenditure shall be made by or on behalf of a committee without
the authorization of the treasurer or that of his or her designated
agents. No contribution or expenditure shall be accepted or made
by or on behalf of a committee at a time when there is a vacancy
in the office of treasurer.

(b) (1) Prior to being designated as a treasurer pursuant to
Section 84102 or 84103, or not later than 20 business days after
that designation, a treasurer who serves as a treasurer for one or
more committees that have made cumulative contributions or
expenditures in excess of two hundred fifty thousand dollars
($250,000) shall complete an online certification course, designed
and administered by the Commission, that addresses the statutes
and regulations governing the financing of campaigns, and the
duties and responsibilities of a treasurer, under this title. If the
cumulative contributions or expenditures for a treasurer’s
committees are two hundred fifty thousand dollars ($250,000) or
less at the time the treasurer is designated as treasurer for a
committee, that treasurer shall be required to complete the online
certification course within 20 business days after the date upon
which the contributions or expenditures of the committee or
committees exceed two hundred fifty thousand dollars ($250,000).
The course shall require each applicant for certification to verify,
under penalty of perjury, his or her identity by means of an
identifier determined by the Commission.

(2) The Commission may charge each applicant for certification
pursuant to this subdivision a fee not to exceed fifty dollars ($50).
The fee may be paid with, or reimbursed from, campaign funds,
as defined in Section 89511.

(3) Each treasurer shall verify, under penalty of perjury, on a
statement of organization required by Section 84101, or on an
amendment to a statement of organization required by Section
84103, that he or she has been certified pursuant to this subdivision.

(4) A treasurer shall renew his or her certification pursuant to
this subdivision every two years.

(5) The Commission shall maintain on its Internet Web site a
list of treasurers who are currently certified pursuant to this
subdivision.

SEC. 4.  

Section 84101 of the Government Code is amended
to read:

84101.  

(a) A committee that is a committee by virtue of
subdivision (a) of Section 82013 shall file a statement of
organization. The committee shall file the statement of organization
by online or electronic means with the Secretary of State, pursuant
to Chapter 4.6 (commencing with Section 84600), and shall also
file a copy of the statement of organization with the local filing
officer, if any, with whom the committee is required to file the
originals of its campaign reports pursuant to Section 84215. A
committee may satisfy the local filing requirement by online or
electronic means if the local filing officer accepts filing by online
or electronic means. The statement of organization shall be filed
within five days after the committee has qualified as a committee.
The Secretary of State shall assign a number to each committee
that files a statement of organization and shall notify the committee
of the number. The Secretary of State shall send a copy of
statements filed pursuant to this section to the county elections
official of each county that he or she deems appropriate by online
or electronic means. A county elections official who receives a
copy of a statement of organization from the Secretary of State
pursuant to this section shall send a copy of the statement to the
clerk of each city in the county that he or she deems appropriate
by online or electronic means.

(b) In addition to filing the statement of organization as required
by subdivision (a), if a committee qualifies as a committee under
subdivision (a) of Section 82013 before the date of an election in
connection with which the committee is required to file a
preelection statement, but after the closing date of the last campaign
statement required to be filed before the election pursuant to
Section 84200.7, 84200.8, or 84200.9, the committee shall file, by
facsimile transmission, guaranteed overnight delivery, personal
delivery, or online transmission within 24 hours of qualifying as
a committee, the information required to be reported in the
statement of organization. The information required by this
subdivision shall be filed with the filing officer with whom the
committee is required to file the originals of its campaign reports
pursuant to Section 84215.

(c) If an independent expenditure committee qualifies as a
committee pursuant to subdivision (a) of Section 82013 during the
time period described in Section 82022.7 and makes independent
expenditures of one thousand dollars ($1,000) or more to support
or oppose a candidate or candidates for office, the committee shall
file, by facsimile transmission, online transmission, guaranteed
overnight delivery, or personal delivery within 24 hours of
qualifying as a committee, the information required to be reported
in the statement of organization. The information required by this
section shall be filed with the filing officer with whom the
committee is required to file the original of its campaign reports
pursuant to Section 84215, and shall be filed at all locations
required for the candidate or candidates supported or opposed by
the independent expenditures. The filings required by this section
are in addition to filings that may be required by Sections 84203.5
and 84204.

(d) For purposes of this section, in calculating whether one
thousand dollars ($1,000) in contributions has been received,
payments for a filing fee or for a statement of qualifications to
appear in a sample ballot shall not be included if these payments
have been made from the candidate’s personal funds.

SEC. 5.  

Section 84103 of the Government Code is amended
to read:

84103.  

(a) Whenever there is a change in any of the
information contained in a statement of organization, an
amendment shall be filed within 10 days to reflect the change. The
committee shall file the amendment with the Secretary of State by
online or electronic means and shall also file a copy of the
amendment with the local filing officer, if any, with whom the
committee is required to file the originals of its campaign reports
pursuant to Section 84215.

(b) In addition to filing an amendment to a statement of
organization as required by subdivision (a), a committee as defined
in subdivision (a) of Section 82013 shall, by facsimile transmission,
online transmission, guaranteed overnight delivery, or personal
delivery within 24 hours, notify the filing officer with whom it is
required to file its campaign reports pursuant to Section 84215
when the change requiring the amendment occurs before the date
of the election in connection with which the committee is required
to file a preelection statement, but after the closing date of the last
preelection statement required to be filed for the election pursuant
to Section 84200.7 or 84200.8, if any of the following information
is changed:

(1) The name of the committee.

(2) The name of the treasurer or other principal officers.

(3) The name of any candidate or committee by which the
committee is controlled or with which it acts jointly.

The notification shall include the changed information, the date
of the change, the name of the person providing the notification,
and the committee’s name and identification number.

A committee may file a notification online only if the appropriate
filing officer is capable of receiving the notification in that manner.

SEC. 6.  

Section 84108 of the Government Code is amended
to read:

84108.  

(a) Every slate mailer organization shall comply with
the requirements of Sections 84100, 84101, 84103, and 84104.

(b) The statement of organization of a slate mailer organization
shall include:

(1) The name, street address, and telephone number of the
organization. In the case of an individual or business entity that
qualifies as a slate mailer organization, the name of the slate mailer
organization shall include the name by which the individual or
entity is identified for legal purposes. Whenever identification of
a slate mailer organization is required by this title, the identification
shall include the full name of the slate mailer organization as
contained in its statement of organization.

(2) The full name, street address, and telephone number of the
treasurer and other principal officers.

(3) The full name, street address, and telephone number of each
person with final decisionmaking authority as to which candidates
or measures will be supported or opposed in the organization’s
slate mailers.

(c) The statement of organization shall be filed with the
Secretary of State within 10 days after the slate mailer organization
receives or is promised five hundred dollars ($500) or more for
producing one or more slate mailers. However, if an entity qualifies
as a slate mailer organization before the date of an election in
which it is required to file preelection statements, but after the
closing date of the last campaign statement required to be filed
before the election pursuant to Section 84218, the slate mailer
organization shall file with the Secretary of State, by facsimile
transmission, guaranteed overnight delivery, online transmission,
or personal delivery within 24 hours of qualifying as a slate mailer
organization, the information required to be reported in the
statement of organization.

SEC. 7.  

Section 84200.6 of the Government Code is amended
to read:

84200.6.  

In addition to the campaign statements required by
Sections 84200 and 84200.5, all candidates and committees shall
file the following special statements and reports:

(a) Supplemental preelection statements when required by
Section 84202.5.

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(b) Postelection campaign statements when required by Section
84202.8.

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(c) Cumulative campaign statements when required by Section
84202.9.

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(d) “Election-cycle

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begin insert (b) end insert begin insert   end insert begin insert Election-cycle end insert contribution reports when required by Section
84203.

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(e)

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begin insert (c) end insert  Independent expenditure reports when required by Section
84203.5.

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(f) “Election-cycle

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begin insert (d) end insert begin insert   end insert begin insert Election-cycle end insert independent expenditure reports when
required by Section 84204.

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SEC. 8.  

Section 84202.8 is added to the Government Code, to
read:

84202.8.  

In addition to the campaign statements required by
Section 84200 and 84200.5, elected officers, candidates, and
committees shall file a postelection campaign statement on the
20th day of the month following the month in which the election
occurred. The postelection campaign statement shall cover the
time period starting the day after the closing date of the last
campaign statement required to be filed prior to the election and
ending the final calendar day of the month in which the election
occurred.

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SEC. 9.  

Section 84202.9 is added to the Government Code, to
read:

84202.9.  

(a) During an even-numbered year, all candidates
for elective office to be voted upon in the statewide primary
election or statewide general election, their controlled committees,
committees formed primarily to support or oppose an elected state
officer or candidate for state elective office being voted upon, and
all committees formed primarily to support or oppose a ballot
measure to be voted upon at the statewide primary election or
statewide general election shall file a cumulative campaign
statement. The cumulative campaign statement shall be filed by
January 31 of the year following the year of the election and shall
cover the time period starting January 1 of the odd-numbered year
preceding the election and ending December 31 of the year in
which the election occurred.

(b) For purposes of special elections and elections in
odd-numbered years, all candidates, their controlled committees,
and committees primarily formed to support or oppose a candidate
or ballot measure shall be required to file cumulative campaign
statements on a date and for a time period determined by the
Commission by regulation.

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begin delete SEC. 10. end delete
begin insert SEC. 8. end insert   

Section 84203 of the Government Code is amended
to read:

84203.  

(a) Each candidate or committee that makes or receives
an election-cycle contribution, as defined in Section 82022.5, shall
report the election-cycle 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 election-cycle contribution shall report his or her
full name and street address and the full name and street address
of the person to whom the election-cycle 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 election-cycle contribution. The recipient of the
election-cycle contribution shall report his or her full name and
street address, the date and amount of the election-cycle
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) An election-cycle contribution shall be reported by facsimile
transmission, guaranteed overnight delivery, online transmission,
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 an election-cycle 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. An election-cycle
contribution shall be reported on subsequent campaign statements
without regard to reports filed pursuant to this section.

(c) An election-cycle 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
election-cycle contribution pursuant to subdivision (a) or (b) of
Section 85309.

begin delete SEC. 11. end delete
begin insert SEC. 9. end insert   

Section 84203.3 of the Government Code is amended
to read:

84203.3.  

(a) Any candidate or committee that makes an
election-cycle contribution that is a nonmonetary contribution shall
notify the recipient in writing of the value of the nonmonetary
contribution. The notice shall be received by the recipient within
24 hours of the time the contribution is made.

(b) Nothing in this section shall relieve a candidate or committee
that makes an election-cycle nonmonetary contribution or the
recipient of an election-cycle nonmonetary contribution from the
requirement to file election-cycle contribution reports pursuant to
Section 84203. However, a report filed by the recipient of an
election-cycle nonmonetary contribution shall be deemed timely
filed if it is received by the filing officer within 48 hours of the
time the contribution is received.

begin delete SEC. 12. end delete
begin insert SEC. 10. end insert   

Section 84204 of the Government Code is amended
to read:

84204.  

(a) A committee that makes an election-cycle
independent expenditure, as defined in Section 82022.7, shall
report the election-cycle independent expenditure by facsimile
transmission, guaranteed overnight delivery, online transmission,
or personal delivery within 24 hours of the time it is made. If an
election-cycle 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. An election-cycle
independent expenditure shall be reported on subsequent campaign
statements without regard to reports filed pursuant to this section.

(b) A committee that makes an election-cycle 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 election-cycle
independent expenditure was made. In addition to the information
required by this subdivision, a committee that makes an
election-cycle independent expenditure shall include with its
election-cycle 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
election-cycle 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 election-cycle
independent expenditure. No information required by paragraphs
(1) to (5), inclusive, of subdivision (f) of Section 84211 that is
required to be reported with an election-cycle independent
expenditure report by this subdivision is required to be reported
on more than one election-cycle independent expenditure report.

(c) A committee that makes an election-cycle independent
expenditure shall file an election-cycle 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 election-cycle 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.

begin delete SEC. 13. end delete
begin insert SEC. 11. end insert   

Section 84215 of the Government Code is amended
to read:

84215.  

All candidates and elected officers and their controlled
committees, except as provided in subdivisions (d) and (e), 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, 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) Elected members of the Board of Administration of the
Public Employees’ Retirement System, elected members of the
Teachers’ Retirement Board, candidates for these offices, their
controlled committees, and committees formed or existing
primarily to support or oppose these candidates or elected members
shall file the original and one copy with the Secretary of State, and
a copy shall be filed at the relevant board’s office in Sacramento.
These elected officers, candidates, and committees need not file
with the elections official of the county in which they are
domiciled.

(f) Notwithstanding any other provision of this section, 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.

(g) 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.

(h) If a jurisdiction authorizes the use of filing by online or
electronic means and a committee, candidate, or elected officer
files the campaign statement by online or electronic means, then
the committee, candidate, or elected officer shall not be required
to file an original or copy of a campaign statement in paper format,
unless otherwise required by statute or local ordinance.

begin delete SEC. 14. end delete
begin insert SEC. 12. end insert   

Section 84220 of the Government Code is amended
to read:

84220.  

If a slate mailer organization receives a payment of two
thousand five hundred dollars ($2,500) or more for purposes of
supporting or opposing any candidate or ballot measure in a slate
mailer, and the payment is received at a time when, if the payment
were a contribution it would be considered an election-cycle
contribution, then the slate mailer organization shall report the
payment in the manner set forth in Section 84203 for candidates
and committees when reporting election-cycle contributions
received. The slate mailer organization shall, in addition to
reporting the information required by Section 84203, identify the
candidates or measures whose support or opposition is being paid
for, in whole or in part, by each election-cycle payment.

begin delete SEC. 15. end delete
begin insert SEC. 13. end insert   

Section 84300 of the Government Code is amended
to read:

84300.  

(a) No contribution of one hundred dollars ($100) or
more shall be made or received in cash.

A cash contribution shall not be deemed received if it is not
negotiated or deposited and is returned to the contributor before
the closing date of the campaign statement on which the
contribution would otherwise be reported. If a cash contribution,
other than an election-cycle contribution, as defined in Section
82022.5, is negotiated or deposited, it shall not be deemed received
if it is refunded within 72 hours of receipt. In the case of an
election-cycle contribution, as defined in Section 82022.5, it shall
not be deemed received if it is returned to the contributor within
48 hours of receipt.

(b) No expenditure of one hundred dollars ($100) or more shall
be made in cash.

(c) No contribution of one hundred dollars ($100) or more other
than an in-kind contribution shall be made unless in the form of a
written instrument containing the name of the donor and the name
of the payee and drawn from the account of the donor or the
intermediary, as defined in Section 84302.

(d) The value of all in-kind contributions of one hundred dollars
($100) or more shall be reported in writing to the recipient upon
the request in writing of the recipient.

begin delete SEC. 16. end delete
begin insert SEC. 14. end insert   

Section 84602 of the Government Code is amended
to read:

84602.  

To implement the Legislature’s intent, the Secretary of
State, in consultation with the Commission, notwithstanding any
other provision of this code, shall do all of the following:

(a) Develop online and electronic filing processes for use by
persons and entities specified in Section 84605 that are required
to file statements and reports with the Secretary of State’s office
pursuant to Chapter 4 (commencing with Section 84100) and
Chapter 6 (commencing with Section 86100). Those processes
shall each enable a user to comply with all the disclosure
requirements of this title and shall include, at a minimum, the
following:

(1) A means or method whereby filers subject to this chapter
may submit required filings free of charge. Any means or method
developed pursuant to this provision shall not provide any
additional or enhanced functions or services that exceed the
minimum requirements necessary to fulfill the disclosure provisions
of this title. At least one means or method shall be made available
no later than December 31, 2002.

(2) The definition of a nonproprietary standardized record format
or formats using industry standards for the transmission of the data
that is required of those persons and entities specified begin insert in end insert Section
84605 and that conforms with the disclosure requirements of this
title. The Secretary of State shall hold public hearings prior to
development of the record format or formats as a means to ensure
that affected entities have an opportunity to provide input into the
development process. The format or formats shall be made public
no later than July 1, 1999, to ensure sufficient time to comply with
this chapter.

(b) Accept test files from software vendors and others wishing
to file reports electronically, for the purpose of determining whether
the file format is in compliance with the standardized record format
developed pursuant to subdivision (a) and is compatible with the
Secretary of State’s system for receiving the data. A list of the
software and service providers who have submitted acceptable test
files shall be published by the Secretary of State and made available
to the public. Acceptably formatted files shall be submitted by a
filer in order to meet the requirements of this chapter.

(c) Develop a system that provides for the online or electronic
transfer of the data specified in this section utilizing
telecommunications technology that begin delete assures end delete begin insert ensures end insert the integrity
of the data transmitted and that creates safeguards against efforts
to tamper with or subvert the data.

(d) Make all the data filed available on the Internet in an easily
understood format that provides the greatest public access. The
data shall be made available free of charge and as soon as possible
after receipt. All election-cycle contribution and election-cycle
independent expenditure reports, as defined by Sections 84203
and 84204, respectively, shall be made available on the Internet
within 24 hours of receipt. The data made available on the Internet
shall not contain the street name and building number of the
persons or entity representatives listed on the electronically filed
forms or any bank account number required to be disclosed
pursuant to this title.

(e) Develop a procedure for filers to comply with the
requirement that they sign under penalty of perjury pursuant to
Section 81004.

(f) Maintain all filed data online for 10 years after the date it is
filed, and then archive the information in a secure format.

(g) Provide assistance to those seeking public access to the
information.

(h) Implement sufficient technology to seek to prevent
unauthorized alteration or manipulation of the data.

(i) Provide the Commission with necessary information to enable
it to assist agencies, public officials, and others with the compliance
with and administration of this title.

(j) Report to the Legislature on the implementation and
development of the online and electronic filing and disclosure
requirements of this chapter. The report shall include an
examination of system security, private security issues, software
availability, compliance costs to filers, use of the filing system and
software provided by the Secretary of State, and other issues
relating to this chapter, and shall recommend appropriate changes
if necessary. In preparing the report, the Commission may present
to the Secretary of State and the Legislature its comments regarding
this chapter as it relates to the duties of the Commission and
suggest appropriate changes if necessary. There shall be one report
due before the system is operational as set forth in Section 84603,
one report due no later than June 1, 2002, and one report due no
later than January 31, 2003.

(k) Review the current filing and disclosure requirements of
this chapter and report to the Legislature, no later than June 1,
2005, recommendations on revising these requirements so as to
promote greater reliance on electronic and online submissions.

begin delete SEC. 17. end delete
begin insert SEC. 15. end insert   

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
election-cycle contribution or election-cycle 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.

begin delete SEC. 18. end delete
begin insert SEC. 16. end insert   

Section 84620 is added to the Government Code, to
read:

84620.  

(a) It is the intent of the Legislature to develop a single,
statewide electronic filing system that consolidates the filing of
all state and local campaign statements and reports required by
this title into one searchable database that provides for, but is not
limited to, all of the following:

(1) Electronic filing of committee organization statements.

(2) Electronic filing of campaign statements by all state
committees, without regard to the amounts of contributions and
expenditures.

(3) Electronic filing of reports by all major donors at the state
and local levels when specified thresholds are met.

(4) A consolidated statewide network that includes a process to
import into the statewide database state-required committee
disclosures from each local jurisdiction that has its own electronic
filing system.

(5) A statewide, Internet Web-based database with expanded
filing and public search capabilities that are data driven and
user-friendly for all members of the public.

(b) The Secretary of State shall begin delete work toward development of end delete
begin insert develop end insert the electronic filing system described in subdivision (a)
as follows:

(1) Not later than December 31, 2014, the Secretary of State
shall develop a feasibility study report that will outline the
technology requirements and the costs of the electronic filing
system. The Secretary of State shall consult and coordinate with
other state agencies that he or she deems appropriate, including,
but not limited to, the Commission, with respect to data
transitioning.

(2) The Secretary of State shall develop a funding plan that
includes a comprehensive and detailed project budget that will be
accurate through the duration of the project and will include
appropriate and reasonable contingencies.

(3) The Secretary of State shall engage in fundraising pursuant
to the plan developed pursuant to paragraph (2).

(4) Not later than December 31, 2018, the Secretary of State
shall complete work on the development, construction, and launch
of the electronic filing system described by this section.

begin delete SEC. 19. end delete
begin insert SEC. 17. end insert   

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,
5 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
5 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) For purposes of this section, a campaign statement or report
filed on behalf of a committee shall not be deemed filed if the
treasurer does not have a current certification pursuant to Section
84100.

(d) 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.

begin delete SEC. 20. end delete
begin insert SEC. 18. 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. 21. end delete
begin insert SEC. 19. 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.