Amended in Senate March 18, 2013

Senate Bill No. 268

Introduced by Senator Gaines

February 13, 2013

An act to amend Section 170.1 of the Code of Civil Procedure, and to amend Sections 56100.1, begin delete 82036.5, 83124, end delete 84101, 84103, 84108, 84203.3, begin delete 84203.5, 84204, 84204.5, end delete 84215, 84216, 84218, 84300, begin delete 84308, end delete 84602, 84605, begin delete 85304, 85304.5, 85306, 85310, 85315, 85316, 85501, 89510, end delete begin insert 85500, end insert 89511.5, begin delete 89512.5, end delete 89513, and 90002 of, to repeal Sections begin insert 82036, 82036.5, end insert 84200.5, 84200.6, 84200.7, 84200.8, 84200.9, 84202.3, 84202.5, 84202.7, 84203, begin insert 84203.5, 84204, 84204.5, end insert 84205, 84206, 84209, 84211, 84216.5, 84220, begin delete 84302, 85300, 85301, 85302, 85303, 85305, 85307, 85309, 85314, 85320, 85321, 85701, 85702, and 85704 end delete begin insert and 85309 end insert of, to repeal Article 2.5 (commencing with Section 84250) of Chapter 4 of Title 9 of, and to repeal and add Section 84200 of, the Government Code, relating to the Political Reform Act of 1974.

LEGISLATIVE COUNSEL’S DIGEST

SB 268, as amended, Gaines. Political Reform Act of 1974.

begin delete

The Political Reform Act of 1974 imposes various limitations on contributions that may be made to, or accepted by, candidates for elective office and campaign committees that support or oppose candidates and ballot measures, including, among other things, limiting the maximum dollar amount of contributions that may be accepted by candidates for elective state office, prohibiting candidates from accepting public funds for the purpose of seeking public office, limiting contributions to an officer of an agency from a party who has a financial interest in a permit or license proceeding before that agency, and prohibiting elected state officers or candidates for elective state office from accepting contributions from lobbyists registered to lobby the governmental agency of which the elected official is a member or for which the candidate seeks election.

end delete begin delete

This bill would repeal limitations on contributions that may be made to, or accepted by, candidates for elective office.

end delete

The begin delete act end delete begin insert Political Reform Act of 1974 end insert requires candidates and committees to file specified campaign finance reports, including semiannual statements, preelection statements, supplemental preelection statements, and late contribution reports, that include prescribed campaign finance information. begin insert A knowing and willful violation of these provisions is a crime. end insert

This bill would repeal the requirements to file these reports and would, instead, require that a candidate or committee who makes or receives a contribution of $100 or more to report that contribution to specified filing officers within 24 hours of receiving the contribution. The bill would require a candidate or committee making the contribution to report his, her, or its full name and address, the full name and address of the recipient, the office sought by the candidate or the ballot measure, as appropriate, and the date and amount of the contribution. The bill would require the recipient of the contribution to report his, her, or its full name and address, the date and amount of the contribution, whether the contribution is in the form of a loan, and the full name of the contributor, and his or her street address, occupation, and employer or the name of the business, if self-employed.

The bill would require a candidate or committee that makes an expenditure of $100 or more to report the expenditure to specified filing officers within 24 hours. The bill would require the candidate or committee making the expenditure to report his, her, or its full name and street address, the amount of the expenditure, the full name and street address for the person to whom the expenditure was made, and a brief description of the consideration for which the expenditure was made. The bill would require the disclosure of additional information if the expenditure is a contribution to a candidate, elected officer, or committee or an independent expenditure to support or oppose a candidate or measure.

The bill would require a candidate or committee who is required to report a contribution or expenditure to the Secretary of State to file that report online or by electronic transmission only.

The bill would also make conforming changes.

By increasing the duties of local government officials begin insert and expanding the scope of an existing crime end insert , this bill would impose a state-mandated local program.

begin delete

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.

end delete begin delete

This bill would provide that no reimbursement is required by this act for a specified reason.

end delete begin delete

The Political Reform Act of 1974, an initiative measure, provides that the act may be amended by a statute that becomes effective upon approval of the voters.

end delete begin delete

This bill would require the Secretary of State to submit the provisions of the bill that would amend the Political Reform Act of 1974 to the voters for approval at a statewide election, as specified.

end delete begin insert

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.

end insert begin insert

This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason.

end insert begin insert

With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

end insert begin 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.

end insert begin insert

This bill would declare that it furthers the purposes of the act.

end insert

Vote:  begin delete majority end delete begin insert ²⁄₃ end insert . Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

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

SECTION 1.  

Section 170.1 of the Code of Civil Procedure is
amended to read:

170.1.  

(a) A judge shall be disqualified if any one or more of
the following are true:

(1) (A) The judge has personal knowledge of disputed
evidentiary facts concerning the proceeding.

(B) A judge shall be deemed to have personal knowledge within
the meaning of this paragraph if the judge, or the spouse of the
judge, or a person within the third degree of relationship to either
of them, or the spouse of such a person, is to the judge’s knowledge
likely to be a material witness in the proceeding.

(2) (A) The judge served as a lawyer in the proceeding, or in
any other proceeding involving the same issues he or she served
as a lawyer for a party in the present proceeding, or gave advice
to a party in the present proceeding upon a matter involved in the
action or proceeding.

(B) A judge shall be deemed to have served as a lawyer in the
proceeding if within the past two years:

(i) A party to the proceeding, or an officer, director, or trustee
of a party, was a client of the judge when the judge was in the
private practice of law or a client of a lawyer with whom the judge
was associated in the private practice of law.

(ii) A lawyer in the proceeding was associated in the private
practice of law with the judge.

(C) A judge who served as a lawyer for, or officer of, a public
agency that is a party to the proceeding shall be deemed to have
served as a lawyer in the proceeding if he or she personally advised
or in any way represented the public agency concerning the factual
or legal issues in the proceeding.

(3) (A) The judge has a financial interest in the subject matter
in a proceeding or in a party to the proceeding.

(B) A judge shall be deemed to have a financial interest within
the meaning of this paragraph if:

(i) A spouse or minor child living in the household has a
financial interest.

(ii) The judge or the spouse of the judge is a fiduciary who has
a financial interest.

(C) A judge has a duty to make reasonable efforts to inform
himself or herself about his or her personal and fiduciary interests
and those of his or her spouse and the personal financial interests
of children living in the household.

(4) The judge, or the spouse of the judge, or a person within the
third degree of relationship to either of them, or the spouse of such
a person, is a party to the proceeding or an officer, director, or
trustee of a party.

(5) A lawyer or a spouse of a lawyer in the proceeding is the
spouse, former spouse, child, sibling, or parent of the judge or the
judge’s spouse or if such a person is associated in the private
practice of law with a lawyer in the proceeding.

(6) (A) For any reason:

(i) The judge believes his or her recusal would further the
interests of justice.

(ii) The judge believes there is a substantial doubt as to his or
her capacity to be impartial.

(iii) A person aware of the facts might reasonably entertain a
doubt that the judge would be able to be impartial.

(B) Bias or prejudice toward a lawyer in the proceeding may
be grounds for disqualification.

(7) By reason of permanent or temporary physical impairment,
the judge is unable to properly perceive the evidence or is unable
to properly conduct the proceeding.

(8) (A) The judge has a current arrangement concerning
prospective employment or other compensated service as a dispute
resolution neutral or is participating in, or within the last two years
has participated in, discussions regarding prospective employment
or service as a dispute resolution neutral, or has been engaged in
that employment or service, and any of the following applies:

(i) The arrangement is, or the prior employment or discussion
was, with a party to the proceeding.

(ii) The matter before the judge includes issues relating to the
enforcement of either an agreement to submit a dispute to an
alternative dispute resolution process or an award or other final
decision by a dispute resolution neutral.

(iii) The judge directs the parties to participate in an alternative
dispute resolution process in which the dispute resolution neutral
will be an individual or entity with whom the judge has the
arrangement, has previously been employed or served, or is
discussing or has discussed the employment or service.

(iv) The judge will select a dispute resolution neutral or entity
to conduct an alternative dispute resolution process in the matter
before the judge, and among those available for selection is an
individual or entity with whom the judge has the arrangement,
with whom the judge has previously been employed or served, or
with whom the judge is discussing or has discussed the employment
or service.

(B) For the purposes of this paragraph, all of the following
apply:

(i) “Participating in discussions” or “has participated in
discussion” means that the judge solicited or otherwise indicated
an interest in accepting or negotiating possible employment or
service as an alternative dispute resolution neutral, or responded
to an unsolicited statement regarding, or an offer of, that
employment or service by expressing an interest in that
employment or service, making an inquiry regarding the
employment or service, or encouraging the person making the
statement or offer to provide additional information about that
possible employment or service. If a judge’s response to an
unsolicited statement regarding, a question about, or offer of,
prospective employment or other compensated service as a dispute
resolution neutral is limited to responding negatively, declining
the offer, or declining to discuss that employment or service, that
response does not constitute participating in discussions.

(ii) “Party” includes the parent, subsidiary, or other legal affiliate
of any entity that is a party and is involved in the transaction,
contract, or facts that gave rise to the issues subject to the
proceeding.

(iii) “Dispute resolution neutral” means an arbitrator, mediator,
temporary judge appointed under Section 21 of Article VI of the
California Constitution, referee appointed under Section 638 or
639, special master, neutral evaluator, settlement officer, or
settlement facilitator.

(9) (A) The judge has received a contribution in excess of one
thousand five hundred dollars ($1,500) from a party or lawyer in
the proceeding, and either of the following applies:

(i) The contribution was received in support of the judge’s last
election, if the last election was within the last six years.

(ii) The contribution was received in anticipation of an upcoming
election.

(B) Notwithstanding subparagraph (A), the judge shall be
disqualified based on a contribution of a lesser amount if
subparagraph (A) of paragraph (6) applies.

(C) The judge shall disclose any contribution from a party or
lawyer in a matter that is before the court that is required to be
reported under Section 84200 of the Government Code, even if
the amount would not require disqualification under this paragraph.
The manner of disclosure shall be the same as that provided in
Canon 3E of the Code of Judicial Ethics.

(D) Notwithstanding paragraph (1) of subdivision (b) of Section
170.3, the disqualification required under this paragraph may be
waived by the party that did not make the contribution unless there
are other circumstances that would prohibit a waiver pursuant to
paragraph (2) of subdivision (b) of Section 170.3.

(b) A judge before whom a proceeding was tried or heard shall
be disqualified from participating in any appellate review of that
proceeding.

(c) At the request of a party or on its own motion an appellate
court shall consider whether in the interests of justice it should
direct that further proceedings be heard before a trial judge other
than the judge whose judgment or order was reviewed by the
appellate court.

SEC. 2.  

Section 56100.1 of the Government Code is amended
to read:

56100.1.  

(a) Contributions and expenditures for political
purposes related to a proposal or proceeding shall be disclosed and
reported pursuant to Article 2 (commencing with Section 84200)
of Chapter 4 of the Political Reform Act of 1974 (Title 9
(commencing with Section 81000)).

(b) A commission may require, through the adoption of written
policies and procedures, additional disclosure of contributions in
support of or opposition to a proposal, which shall be made either
to the commission’s executive officer, in which case it shall be
posted on the commission’s Internet Web site, if applicable, or to
the board of supervisors of the county in which the commission
is located, which may designate a county officer to receive the
disclosure. Disclosure pursuant to a requirement under the authority
provided in this section shall be in addition to any disclosure
otherwise required by Section 56700.1, 57009, or local ordinance.

begin delete

SEC. 3.  

Section 82036.5 of the Government Code is amended
to read:

82036.5.  

“Late independent expenditure” means any
independent expenditure that totals in the aggregate one thousand
dollars ($1,000) or more and is made for or against any specific
candidate or measure involved in an election within the 12 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. 4.  

Section 83124 of the Government Code is amended
to read:

83124.  

The commission shall adjust the voluntary expenditure
limitations provisions in Section 85400 in January of every
odd-numbered year to reflect any increase or decrease in the
Consumer Price Index. Those adjustments shall be rounded to the
nearest one thousand dollars ($1,000).

end delete

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 82036 of the end insert begin insert Government Code end insert begin insert is repealed. end insert

begin delete

82036.  

“Late 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.

end delete

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 82036.5 of the end insert begin insert Government Code end insert begin insert is repealed. end insert

begin delete

82036.5.  

“Late 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.

end delete

SEC. 5.  

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 original of the statement
of organization with the Secretary of State 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. The original
and copy of the statement of organization shall be filed within 10
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. 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.

(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 within the 12 days before the
date of an election in connection with which the committee is
required to file campaign statements, the committee shall file, by
facsimile 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 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 begin delete during the
time period described in Section 82036.5 end delete begin insert within the 12 days before
the date of an election in connection with which the committee is
required to file campaign statements end insert 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 Section begin delete 84204 end delete
begin insert 84200 end insert .

(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. 6.  

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 original of the amendment with the
Secretary of State 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 the originals of its campaign reports pursuant to
Section 84215 when the change requiring the amendment occurs
within the 12 days before the date of the election in connection
with which the committee is required to file a campaign statement,
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. 7.  

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 within the 12 days before the date
of an election in which it is required to file campaign statements,
the slate mailer organization shall file with the Secretary of State,
by facsimile transmission, guaranteed overnight delivery, 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. 8.  

Section 84200 of the Government Code is repealed.

SEC. 9.  

Section 84200 is added to the Government Code, to
read:

84200.  

(a) (1) Each candidate or committee that makes or
receives a contribution of one hundred dollars ($100) or more shall
report the contribution to each office with which the candidate or
committee is required to file its statements pursuant to Section
84215 or 84218. The candidate or committee that makes the
contribution shall report his or her full name and street address
and the full name and street address of the person to whom the
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 contribution. The recipient
of the contribution shall report his or her full name and street
address, the date and amount of the 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.

(2) A 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.

(b) Each candidate or committee that makes an expenditure of
one hundred dollars ($100) or more shall report the expenditure
to each office with which the candidate or committee is required
to file its statements pursuant to Section 84215 or 84218. The
candidate or committee that makes the expenditure shall report his
or her full name and street address, the amount of the expenditure,
the full name and street address for the person to whom the
expenditure was made, and a brief description of the consideration
for which the expenditure was made. In the case of an expenditure
that is a contribution to a candidate, elected officer, or committee
or an independent expenditure to support or oppose a candidate
or measure, the report shall begin insert designate the expenditure as a
contribution or independent expenditure, as appropriate, and shall end insert
also include the date of the contribution or independent
expenditure, the cumulative amount of contributions made to the
candidate, elected officer, or committee, or the cumulative amount
of independent expenditures made relative to a candidate or
measure, the full name of the candidate, and the office and district
for which he or she seeks nomination or election, or the number
or letter of the measure, and the jurisdiction in which the measure
or candidate is voted upon.

(c) A contribution or expenditure shall be reported by facsimile
transmission, guaranteed overnight delivery, or personal delivery
within 24 hours of the time it is made in the case of the candidate
or committee that makes the contribution and within 24 hours of
the time it is received in the case of the recipient. If a contribution
or 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.

SEC. 10.  

Section 84200.5 of the Government Code is repealed.

SEC. 11.  

Section 84200.6 of the Government Code is repealed.

SEC. 12.  

Section 84200.7 of the Government Code is repealed.

SEC. 13.  

Section 84200.8 of the Government Code is repealed.

SEC. 14.  

Section 84200.9 of the Government Code is repealed.

SEC. 15.  

Section 84202.3 of the Government Code is repealed.

SEC. 16.  

Section 84202.5 of the Government Code is repealed.

SEC. 17.  

Section 84202.7 of the Government Code is repealed.

SEC. 18.  

Section 84203 of the Government Code is repealed.

SEC. 19.  

Section 84203.3 of the Government Code is amended
to read:

84203.3.  

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

begin delete

SEC. 20.  

Section 84203.5 of the Government Code is amended
to read:

84203.5.  

(a) In addition to any campaign statements required
by this article, if a candidate or committee has made independent
expenditures totaling one thousand dollars ($1,000) or more in a
calendar year to support or oppose a candidate, a measure or
qualification of a measure, it shall file independent expenditure
reports at the times prescribed by the Commission.

(b) An independent expenditure report shall contain the
following information:

(1) The name, street address, and telephone number of the
candidate or committee making the expenditure and of the
committee’s treasurer, and the number assigned to the committee
by the Secretary of State.

(2) If the report is related to a candidate, the full name of the
candidate and the office and district for which the candidate seeks
nomination or election. If the report is related to a measure or
qualification of a measure, the number or letter of the measure, or
if none has yet been assigned, a brief description of the subject
matter of the measure, and the jurisdiction in which the measure
is to be voted on or would be voted on if it qualified.

(3) The total amount of expenditures related to the candidate or
measure during the period covered by the report made to persons
who have received less than one hundred dollars ($100).

(4) The total amount of expenditures related to the candidate or
measure during the period covered by the report made to persons
who have received one hundred dollars ($100) or more.

(5) For each person to whom an expenditure of one hundred
dollars ($100) or more related to the candidate or measure has
been made during the period covered by the report and for each
person who has provided consideration for an expenditure of one
hundred dollars ($100) or more during the period covered by the
report:

(A) His or her full name.

(B) His or her street address.

(C) If the person is a committee, the name of the committee,
the number assigned to the committee by the Secretary of State,
or if no number has been assigned, the full name and street address
of the treasurer of the committee.

(D) The date of the expenditure.

(E) The amount of the expenditure.

(F) A brief description of the consideration for which each
expenditure was made and the value of the consideration if less
than the total amount of the expenditure.

(G) The cumulative amount of expenditures to the person.

(6) A list of all the filing officers with whom the committee
filed its most recent campaign statement.

(c) Filing officers shall maintain paper reports filed pursuant to
this section under the name of the candidate or measure supported
or opposed by the independent expenditure.

end delete begin delete

SEC. 21.  

Section 84204 of the Government Code is amended
to read:

84204.  

(a) A committee that makes a late independent
expenditure, as defined in Section 82036.5, shall report the late
independent expenditure by facsimile transmission, guaranteed
overnight delivery, or personal delivery within 24 hours of the
time it is made. If a late independent expenditure is required to be
reported to the Secretary of State, the report to the Secretary of
State shall be by online or electronic transmission only. A late
independent expenditure shall be reported on subsequent campaign
statements without regard to reports filed pursuant to this section.

(b) A committee that makes a late independent expenditure shall
report its full name and street address, as well as the name, office,
and district of the candidate if the report is related to a candidate,
or if the report is related to a measure, the number or letter of the
measure, the jurisdiction in which the measure is to be voted upon,
and the amount and the date, as well as a description of goods or
services for which the late independent expenditure was made.

(c) A committee that makes a late independent expenditure shall
file a late independent expenditure report in the places where it
would be required to file campaign statements under this article
as if it were formed or existing primarily to support or oppose the
candidate or measure for or against which it is making the late
independent expenditure.

(d) A report filed pursuant to this section shall be in addition to
any other campaign statement required to be filed by this article.

(e) Expenditures that have been disclosed by candidates and
committees pursuant to Section 85500 are not required to be
disclosed pursuant to this section.

SEC. 22.  

Section 84204.5 of the Government Code is amended
to read:

84204.5.  

(a) In addition to any other report required by this
title, a committee pursuant to subdivision (a) of Section 82013 that
is required to file reports pursuant to Section 84605 shall file online
or electronically with the Secretary of State each time it makes
independent expenditures totaling five thousand dollars ($5,000)
or more to support or oppose the qualification or passage of a
single state ballot measure. The report shall be filed within 10
business days of making the contributions or independent
expenditures and shall contain all of the following:

(1) The full name, street address, and identification number of
the committee.

(2) The number or letter of the measure if the measure has
qualified for the ballot and has been assigned a number or letter;
the title of the measure if the measure has not been assigned a
number or letter but has been issued a title by the Attorney General;
or the subject of the measure if the measure has not been assigned
a number or letter and has not been issued a title by the Attorney
General.

(3) The date, amount, and a description of the goods or services
for which the expenditure was made.

(b) Reports required by this section are not required to be filed
by a committee primarily formed to support or oppose the
qualification or passage of a state ballot measure for expenditures
made on behalf of the ballot measure or measures for which it is
formed.

(c) Independent expenditures that have been disclosed by a
committee pursuant to Section 84204 or 85500 are not required to
be disclosed pursuant to this section.

end delete

begin insert

begin insert SEC. 20. end insert   

end insert

begin insert Section 84203.5 of the end insert begin insert Government Code end insert begin insert is repealed. end insert

begin delete

84203.5.  

(a) In addition to any campaign statements required
by this article, if a candidate or committee has made independent
expenditures totaling one thousand dollars ($1,000) or more in a
calendar year to support or oppose a candidate, a measure or
qualification of a measure, it shall file independent expenditure
reports at the same time, covering the same periods, and in the
places where the candidate or committee 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
or qualification of the measure. No independent expenditure report
need be filed to cover a period for which there has been no activity
to report.

(b) An independent expenditure report shall contain the
following information:

(1) The name, street address, and telephone number of the
candidate or committee making the expenditure and of the
committee’s treasurer, and the number assigned to the committee
by the Secretary of State.

(2) If the report is related to a candidate, the full name of the
candidate and the office and district for which the candidate seeks
nomination or election. If the report is related to a measure or
qualification of a measure, the number or letter of the measure, or
if none has yet been assigned, a brief description of the subject
matter of the measure, and the jurisdiction in which the measure
is to be voted on or would be voted on if it qualified.

(3) The total amount of expenditures related to the candidate or
measure during the period covered by the report made to persons
who have received less than one hundred dollars ($100).

(4) The total amount of expenditures related to the candidate or
measure during the period covered by the report made to persons
who have received one hundred dollars ($100) or more.

(5) For each person to whom an expenditure of one hundred
dollars ($100) or more related to the candidate or measure has
been made during the period covered by the report and for each
person who has provided consideration for an expenditure of one
hundred dollars ($100) or more during the period covered by the
report:

(A) His or her full name.

(B) His or her street address.

(C) If the person is a committee, the name of the committee,
the number assigned to the committee by the Secretary of State,
or if no number has been assigned, the full name and street address
of the treasurer of the committee.

(D) The date of the expenditure.

(E) The amount of the expenditure.

(F) A brief description of the consideration for which each
expenditure was made and the value of the consideration if less
than the total amount of the expenditure.

(G) The cumulative amount of expenditures to such person.

(6) A list of all the filing officers with whom the committee
filed its most recent campaign statement.

(c) Filing officers shall maintain paper reports filed pursuant to
this section under the name of the candidate or measure supported
or opposed by the independent expenditure.

end delete

begin insert

begin insert SEC. 21. end insert   

end insert

begin insert Section 84204 of the end insert begin insert Government Code end insert begin insert is repealed. end insert

begin delete

84204.  

(a) A committee that makes a late independent
expenditure, as defined in Section 82036.5, shall report the late
independent expenditure by facsimile transmission, guaranteed
overnight delivery, or personal delivery within 24 hours of the
time it is made. If a late independent expenditure is required to be
reported to the Secretary of State, the report to the Secretary of
State shall be by online or electronic transmission only. A late
independent expenditure shall be reported on subsequent campaign
statements without regard to reports filed pursuant to this section.

(b) A committee that makes a late independent expenditure shall
report its full name and street address, as well as the name, office,
and district of the candidate if the report is related to a candidate,
or if the report is related to a measure, the number or letter of the
measure, the jurisdiction in which the measure is to be voted upon,
and the amount and the date, as well as a description of goods or
services for which the late independent expenditure was made. In
addition to the information required by this subdivision, a
committee that makes a late independent expenditure shall include
with its late independent expenditure report the information
required by paragraphs (1) to (5), inclusive, of subdivision (f) of
Section 84211, covering the period from the day after the closing
date of the last campaign report filed to the date of the late
independent expenditure, or if the committee has not previously
filed a campaign statement, covering the period from the previous
January 1 to the date of the late independent expenditure. No
information required by paragraphs (1) to (5), inclusive, of
subdivision (f) of Section 84211 that is required to be reported
with a late independent expenditure report by this subdivision is
required to be reported on more than one late independent
expenditure report.

(c) A committee that makes a late independent expenditure shall
file a late independent expenditure report in the places where it
would be required to file campaign statements under this article
as if it were formed or existing primarily to support or oppose the
candidate or measure for or against which it is making the late
independent expenditure.

(d) A report filed pursuant to this section shall be in addition to
any other campaign statement required to be filed by this article.

(e) Expenditures that have been disclosed by candidates and
committees pursuant to Section 85500 are not required to be
disclosed pursuant to this section.

end delete

begin insert

begin insert SEC. 22. end insert   

end insert

begin insert Section 84204.5 of the end insert begin insert Government Code end insert begin insert is repealed. end insert

begin delete

84204.5.  

(a) In addition to any other report required by this
title, a committee pursuant to subdivision (a) of Section 82013 that
is required to file reports pursuant to Section 84605 shall file online
or electronically with the Secretary of State each time it makes
contributions totaling five thousand dollars ($5,000) or more or
each time it makes independent expenditures totaling five thousand
dollars ($5,000) or more to support or oppose the qualification or
passage of a single state ballot measure. The report shall be filed
within 10 business days of making the contributions or independent
expenditures and shall contain all of the following:

(1) The full name, street address, and identification number of
the committee.

(2) The number or letter of the measure if the measure has
qualified for the ballot and has been assigned a number or letter;
the title of the measure if the measure has not been assigned a
number or letter but has been issued a title by the Attorney General;
or the subject of the measure if the measure has not been assigned
a number or letter and has not been issued a title by the Attorney
General.

(3) In the case of a contribution, the date and amount of the
contribution and the name, address, and identification number of
the committee to whom the contribution was made. In addition,
the report shall include the information required by paragraphs (1)
to (5), inclusive, of subdivision (f) of Section 84211, regarding
contributions or loans received from a person described in that
subdivision, covering the period from the day after the closing
date of the last campaign report filed to the date of the contribution
requiring a report under this section, or if the committee has not
previously filed a campaign statement, covering the period from
the previous January 1 to the date of the contribution requiring a
report under this section. No information described in paragraphs
(1) to (5), inclusive, of subdivision (f) of Section 84211 that is
required to be reported pursuant to this subdivision is required to
be reported in more than one report provided for in this subdivision
for each contribution or loan received from a person described in
subdivision (f) of Section 84211.

(4) In the case of an independent expenditure, the date, amount,
and a description of the goods or services for which the expenditure
was made. In addition, the report shall include the information
required by paragraphs (1) to (5), inclusive, of subdivision (f) of
Section 84211 regarding contributions or loans received from a
person described in that subdivision, covering the period from the
day after the closing date of the last campaign report filed to the
date of the 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 expenditure. No information described
in paragraphs (1) to (5), inclusive, of subdivision (f) of Section
84211 that is required to be reported pursuant to this subdivision
is required to be reported in more than one report provided for in
this subdivision for each contribution or loan received from a
person described in subdivision (f) of Section 84211.

(b) Reports required by this section are not required to be filed
by a committee primarily formed to support or oppose the
qualification or passage of a state ballot measure for expenditures
made on behalf of the ballot measure or measures for which it is
formed.

(c) Independent expenditures that have been disclosed by a
committee pursuant to Section 84204 or 85500 are not required to
be disclosed pursuant to this section.

end delete

SEC. 23.  

Section 84205 of the Government Code is repealed.

SEC. 24.  

Section 84206 of the Government Code is repealed.

SEC. 25.  

Section 84209 of the Government Code is repealed.

SEC. 26.  

Section 84211 of the Government Code is repealed.

SEC. 27.  

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, and shall file the
original and one copy of the campaign statement in paper format
with the Secretary of State.

(b) Elected officers in jurisdictions other than legislative
districts, State Board of Equalization districts, or appellate court
districts that contain parts of two or more counties, candidates for
these offices, their controlled committees, and committees formed
or existing primarily to support or oppose candidates or local
measures to be voted upon in one of these jurisdictions shall file
the original and one copy with the elections official of the county
with the largest number of registered voters in the jurisdiction.

(c) County elected officers, candidates for these offices, their
controlled committees, committees formed or existing primarily
to support or oppose candidates or local measures to be voted upon
in any number of jurisdictions within one county, other than those
specified in subdivision (d), and county general purpose
committees shall file the original and one copy with the elections
official of the county.

(d) City elected officers, candidates for city office, their
controlled committees, committees formed or existing primarily
to support or oppose candidates or local measures to be voted upon
in one city, and city general purpose committees shall file the
original and one copy with the clerk of the city and are not required
to file with the local elections official of the county in which they
are domiciled.

(e) 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 in places designated in subdivisions (a)
to (d), inclusive, it shall continue to file these statements in those
places, in addition to any other places required by this title, until
the end of the calendar year.

SEC. 28.  

Section 84216 of the Government Code is amended
to read:

84216.  

(a) Notwithstanding Section 82015, a loan received
by a candidate or committee is a contribution unless the loan is
received from a commercial lending institution in the ordinary
course of business, or it is clear from the surrounding circumstances
that it is not made for political purposes.

(b) A loan, whether or not there is a written contract for the
loan, shall be reported as provided in Section 84200 when any of
the following apply:

(1) The loan is a contribution.

(2) The loan is received by a committee.

(3) The loan is received by a candidate and is used for political
purposes.

SEC. 29.  

Section 84216.5 of the Government Code is repealed.

SEC. 30.  

Section 84218 of the Government Code is amended
to read:

84218.  

(a) A slate mailer organization shall file semiannual
campaign statements no later than July 31 for the period ending
June 30, and no later than January 31 for the period ending
December 31.

(b) A slate mailer organization shall file two copies of its
campaign reports with the clerk of the county in which it is
domiciled. A slate mailer organization is domiciled at the address
listed on its statement of organization unless it is domiciled outside
California, in which case its domicile shall be deemed to be Los
Angeles County for purposes of this section.

In addition, slate mailer organizations shall file campaign reports
as follows:

(1) A slate mailer organization which produces one or more
slate mailers supporting or opposing candidates or measures voted
on in a state election, or in more than one county, shall file
campaign reports in the same manner as state general purpose
committees pursuant to subdivision (a) of Section 84215.

(2) A slate mailer organization which produces one or more
slate mailers supporting or opposing candidates or measures voted
on in only one county, or in more than one jurisdiction within one
county, shall file campaign reports in the same manner as county
general purpose committees pursuant to subdivision (c) of Section
84215.

(3) A slate mailer organization which produces one or more
slate mailers supporting or opposing candidates or measures voted
on in only one city shall file campaign reports in the same manner
as city general purpose committees pursuant to subdivision (d) of
Section 84215.

(4) Notwithstanding the above, no slate mailer organization
shall be required to file more than the original and one copy, or
two copies, of a campaign report with any one county or city clerk
or with the Secretary of State.

SEC. 31.  

Section 84220 of the Government Code is repealed.

SEC. 32.  

Article 2.5 (commencing with Section 84250) of
Chapter 4 of Title 9 of the Government Code is repealed.

begin delete

SEC. 33.  

Section 84300 of the Government Code is amended
to read:

84300.  

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

(b) 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.

SEC. 34.  

Section 84302 of the Government Code is repealed.

SEC. 35.  

Section 84308 of the Government Code is amended
to read:

84308.  

(a) The definitions set forth in this subdivision shall
govern the interpretation of this section.

(1) “Party” means any person who files an application for, or
is the subject of, a proceeding involving a license, permit, or other
entitlement for use.

(2) “Participant” means any person who is not a party but who
actively supports or opposes a particular decision in a proceeding
involving a license, permit, or other entitlement for use and who
has a financial interest in the decision, as described in Article 1
(commencing with Section 87100) of Chapter 7. A person actively
supports or opposes a particular decision in a proceeding if he or
she lobbies in person the officers or employees of the agency,
testifies in person before the agency, or otherwise acts to influence
officers of the agency.

(3) “Agency” means an agency as defined in Section 82003,
except that it does not include the courts or any agency in the
judicial branch of government, local governmental agencies whose
members are directly elected by the voters, the Legislature, the
State Board of Equalization, or constitutional officers. However,
this section applies to any person who is a member of an exempted
agency but is acting as a voting member of another agency.

(4) “Officer” means any elected or appointed officer of an
agency, any alternate to an elected or appointed officer of an
agency, and any candidate for elective office in an agency.

(5) “License, permit, or other entitlement for use” means all
business, professional, trade, and land use licenses and permits
and all other entitlements for use, including all entitlements for
land use, all contracts (other than competitively bid, labor, or
personal employment contracts), and all franchises.

(6) “Contribution” includes contributions to candidates and
committees in federal, state, or local elections.

(b) Prior to rendering any decision in a proceeding involving a
license, permit, or other entitlement for use pending before an
agency, each officer of the agency who received a contribution
within the preceding 12 months in an amount of more than two
hundred fifty dollars ($250) from a party or from any participant
shall disclose that fact on the record of the proceeding. No officer
of an agency shall make, participate in making, or in any way
attempt to use his or her official position to influence the decision
in a proceeding involving a license, permit, or other entitlement
for use pending before the agency if the officer has willfully or
knowingly received a contribution in an amount of more than two
hundred fifty dollars ($250) within the preceding 12 months from
a party or his or her agent, or from any participant, or his or her
agent if the officer knows or has reason to know that the participant
has a financial interest in the decision, as that term is described
with respect to public officials in Article 1 (commencing with
Section 87100) of Chapter 7.

If an officer receives a contribution that would otherwise require
disqualification under this section, and returns the contribution
within 30 days from the time he or she knows, or should have
known, about the contribution and the proceeding involving a
license, permit, or other entitlement for use, he or she shall be
permitted to participate in the proceeding.

(c) A party to a proceeding before an agency involving a license,
permit, or other entitlement for use shall disclose on the record of
the proceeding any contribution in an amount of more than two
hundred fifty dollars ($250) made within the preceding 12 months
by the party, or his or her agent, to any officer of the agency. No
party, or his or her agent, to a proceeding involving a license,
permit, or other entitlement for use pending before any agency
and no participant, or his or her agent, in the proceeding shall make
a contribution of more than two hundred fifty dollars ($250) to
any officer of that agency during the proceeding and for three
months following the date a final decision is rendered by the
agency in the proceeding. When a closed corporation is a party to,
or a participant in, a proceeding involving a license, permit, or
other entitlement for use pending before an agency, the majority
shareholder is subject to the disclosure and prohibition
requirements specified in subdivision (b) and this subdivision.

(d) Nothing in this section shall be construed to imply that any
contribution subject to being reported under this title shall not be
so reported.

end delete

begin insert

begin insert SEC. 33. end insert   

end insert

begin insert Section 84300 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

84300.  

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

begin delete

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 a late contribution, as defined in Section 82036, is
negotiated or deposited, it shall not be deemed received if it is
refunded within 72 hours of receipt. In the case of a late
contribution, as defined in Section 82036, it shall not be deemed
received if it is returned to the contributor within 48 hours of
receipt.

end delete

(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. 36. end delete
begin insert SEC. 34. 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
the requirements of 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 assures 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 contribution reports and begin delete late independent end delete
expenditure reports 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. 37. end delete
begin insert SEC. 35. 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
contribution begin delete report or late independent end delete begin insert or end insert expenditure report 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. 38.  

Section 85300 of the Government Code is repealed.

SEC. 39.  

Section 85301 of the Government Code is repealed.

SEC. 40.  

Section 85302 of the Government Code is repealed.

SEC. 41.  

Section 85303 of the Government Code is repealed.

SEC. 42.  

Section 85304 of the Government Code is amended to
read:

85304.  

(a) A candidate for elective state office or an elected
state officer may establish a separate account to defray attorney’s
fees and other related legal costs incurred for the candidate’s or
officer’s legal defense if the candidate or officer is subject to one
or more civil or criminal proceedings or administrative proceedings
arising directly out of the conduct of an election campaign, the
electoral process, or the performance of the officer’s governmental
activities and duties. These funds may be used only to defray those
attorney’s fees and other related legal costs.

(b) All contributions shall be reported in the manner prescribed
by Section 84200.

(c) Once the legal dispute is resolved, the candidate shall dispose
of any funds remaining after all expenses associated with the
dispute are discharged for one or more of the purposes set forth in
paragraphs (1) to (5), inclusive, of subdivision (b) of Section
89519.

SEC. 43.  

Section 85304.5 of the Government Code is amended
to read:

85304.5.  

(a) A candidate for elective office other than an
elective state office or an elected officer other than an elected state
officer may establish a separate account pursuant to subdivision
(a) of Section 85304 and may use these funds only to defray
attorney’s fees and other related legal costs.

(b) A candidate for an elective office other than an elective state
office may receive contributions to the separate account, which
shall not be subject to any limitations provided by local ordinance.
However, all contributions to these separate accounts shall be
reported in the manner prescribed by Section 84200.

(c) Once the legal dispute is resolved, the candidate or elected
officer shall dispose of any funds remaining in the separate
accounts after all expenses associated with the dispute are
discharged for one or more of the purposes set forth in paragraphs
(1) to (5), inclusive, of subdivision (b) of Section 89519.

SEC. 44.  

Section 85305 of the Government Code is repealed.

SEC. 45.  

Section 85306 of the Government Code is amended
to read:

85306.  

(a) A candidate may transfer campaign funds from one
controlled committee to a controlled committee for elective state
office of the same candidate. Contributions transferred shall be
attributed to specific contributors using a “last in, first out” or “first
in, first out” accounting method.

(b) Notwithstanding subdivision (a), a candidate for elective
state office, other than a candidate for statewide elective office,
who possesses campaign funds on January 1, 2001, may use those
funds to seek elective office without attributing the funds to specific
contributors.

(c) Notwithstanding subdivision (a), a candidate for statewide
elective office who possesses campaign funds on November 6,
2002, may use those funds to seek elective office without
attributing the funds to specific contributors.

SEC. 46.  

Section 85307 of the Government Code is repealed.

SEC. 47.  

Section 85309 of the Government Code is repealed.

SEC. 48.  

Section 85310 of the Government Code is amended
to read:

85310.  

(a) Any person who makes a payment or a promise of
payment totaling fifty thousand dollars ($50,000) or more for a
communication that clearly identifies a candidate for elective state
office, but does not expressly advocate the election or defeat of
the candidate, and that is disseminated, broadcast, or otherwise
published within 45 days of an election, shall file online or
electronically with the Secretary of State a report disclosing the
name of the person, address, occupation, and employer, and amount
of the payment. The report shall be filed within 48 hours of making
the payment or the promise to make the payment.

(b) (1) Except as provided in paragraph (2), if any person has
received a payment or a promise of a payment from other persons
totaling five thousand dollars ($5,000) or more for the purpose of
making a communication described in subdivision (a), the person
receiving the payments shall disclose on the report the name,
address, occupation and employer, and date and amount received
from the person.

(2) A person who receives or is promised a payment that is
otherwise reportable under paragraph (1) is not required to report
the payment if the person is in the business of providing goods or
services and receives or is promised the payment for the purpose
of providing those goods or services.

SEC. 49.  

Section 85314 of the Government Code is repealed.

SEC. 50.  

Section 85315 of the Government Code is amended to
read:

85315.  

(a) Notwithstanding any other provision of this chapter,
an elected state officer may establish a committee to oppose the
qualification of a recall measure and the recall election. This
committee may be established when the elected state officer
receives a notice of intent to recall pursuant to Section 11021 of
the Elections Code. An elected state officer may accept campaign
contributions to oppose the qualification of a recall measure. The
voluntary expenditure limits do not apply to expenditures made
to oppose the qualification of a recall measure or to oppose the
recall election.

(b) After the failure of a recall petition or after the recall
election, the committee formed by the elected state officer shall
wind down its activities and dissolve. Any remaining funds shall
be treated as surplus funds and shall be expended within 30 days
after the failure of the recall petition or after the recall election for
a purpose specified in subdivision (b) of Section 89519.

SEC. 51.  

Section 85316 of the Government Code is amended
to read:

85316.  

(a) Except as provided in subdivision (b), a contribution
for an election may be accepted by a candidate for elective state
office after the date of the election only to the extent that the
contribution does not exceed net debts outstanding from the
election.

(b) Notwithstanding subdivision (a), an elected state officer
may accept contributions after the date of the election for the
purpose of paying expenses associated with holding the office
provided that the contributions are not expended for any
contribution to any state or local committee. Contributions received
pursuant to this subdivision shall be deposited into a bank account
established solely for the purposes specified in this subdivision.

(c) Any contribution received pursuant to this section shall be
deemed to be a contribution to that candidate for election to any
state office that he or she may seek during the term of office to
which he or she is currently elected, including, but not limited to,
reelection to the office he or she currently holds. None of the
expenditures made by elected state officers pursuant to this
subdivision shall be subject to the voluntary expenditure limitations
in Section 85400.

SEC. 52.  

Section 85320 of the Government Code is repealed.

SEC. 53.  

Section 85321 of the Government Code is repealed.

SEC. 54.  

Section 85501 of the Government Code is amended
to read:

85501.  

A controlled committee of a candidate may not make
independent expenditures to support or oppose other candidates.

SEC. 55.  

Section 85701 of the Government Code is repealed.

SEC. 56.  

Section 85702 of the Government Code is repealed.

SEC. 57.  

Section 85704 of the Government Code is repealed.

SEC. 58.  

Section 89510 of the Government Code is amended
to read:

89510.  

All contributions deposited into the campaign account
shall be deemed to be held in trust for expenses associated with
the election of the candidate or for expenses associated with
holding office.

end delete

begin insert

begin insert SEC. 36. end insert   

end insert

begin insert Section 85309 of the end insert begin insert Government Code end insert begin insert is repealed. end insert

begin delete

85309.  

(a) In addition to any other report required by this title,
a candidate for elective state office who is required to file reports
pursuant to Section 84605 shall file online or electronically with
the Secretary of State a report disclosing receipt of a contribution
of one thousand dollars ($1,000) or more received during an
election cycle. Those reports shall disclose the same information
required by subdivision (a) of Section 84203 and shall be filed
within 24 hours of receipt of the contribution.

(b) In addition to any other report required by this title, any
committee primarily formed to support or oppose one or more
state ballot measures that is required to file reports pursuant to
Section 84605 shall file online or electronically with the Secretary
of State a report disclosing receipt of a contribution of one thousand
dollars ($1,000) or more received during an election cycle. Those
reports shall disclose the same information required by subdivision
(a) of Section 84203 and shall be filed within 24 hours of receipt
of the contribution.

(c) In addition to any other report required by this title, a
candidate for elective state office who is required to file reports
pursuant to Section 84605 shall file online or electronically with
the Secretary of State a report disclosing receipt of a contribution
of five thousand dollars ($5,000) or more received at any time
other than during an election cycle. Those reports shall disclose
the same information required by subdivision (a) of Section 84203
and shall be filed within 10 business days of receipt of the
contribution.

(d) In addition to any other report required by this title, a
committee primarily formed to support or oppose a state ballot
measure that is required to file reports pursuant to Section 84605
shall file online or electronically with the Secretary of State a report
disclosing receipt of a contribution of five thousand dollars
($5,000) or more received at any time other than during an election
cycle. Those reports shall disclose the same information required
by subdivision (a) of Section 84203 and shall be filed within 10
business days of receipt of the contribution.

end delete

begin insert

begin insert SEC. 37. end insert   

end insert

begin insert Section 85500 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

85500.  

(a) In addition to any other report required by this title,
a committee, including a political party committee, that is required
to file reports pursuant to Section 84605 and that makes
independent expenditures begin delete of one thousand dollars ($1,000) or more end delete
during an election cycle in connection with a candidate for elective
state office or state ballot measure, shall file online or electronically
a report with the Secretary of State disclosing the making of the
independent expenditure. This report shall disclose the same
information required by subdivision (b) of Section begin delete 84204 end delete begin insert 84200 end insert
and shall be filed within 24 hours of the time the independent
expenditure is made.

(b) An expenditure may not be considered independent, and
shall be treated as a contribution from the person making the
expenditure to the candidate on whose behalf, or for whose benefit,
the expenditure is made, if the expenditure is made under any of
the following circumstances:

(1) The expenditure is made with the cooperation of, or in
consultation with, the candidate on whose behalf, or for whose
benefit, the expenditure is made, or any controlled committee or
any agent of the candidate.

(2) The expenditure is made in concert with, or at the request
or suggestion of, the candidate on whose behalf, or for whose
benefit, the expenditure is made, or any controlled committee or
any agent of the candidate.

(3) The expenditure is made under any arrangement,
coordination, or direction with respect to the candidate or the
candidate’s agent and the person making the expenditure.

begin delete SEC. 59. end delete
begin insert SEC. 38. end insert   

Section 89511.5 of the Government Code is amended
to read:

89511.5.  

(a) An incumbent elected officer may utilize his or
her personal funds for expenditures authorized by Section 89510
without first depositing those funds in his or her controlled
committee’s campaign bank account, if both of the following
conditions are met:

(1) The expenditures are not campaign expenses.

(2) The treasurer of the committee is provided with a dated
receipt and a written description of the expenditure.

(b) An incumbent elected officer may be reimbursed for
expenditures of his or her personal funds, from either the controlled
committee campaign bank account established pursuant to Section
85201 with respect to election to the incumbent term of office, or
from a controlled committee campaign bank account established
pursuant to Section 85201 with respect to election to a future term
of office, if all of the following conditions are met:

(1) The expenditures are not campaign expenses.

(2) The incumbent elected officer, prior to reimbursement,
provides the treasurer of the committee with a dated receipt and a
written description of each expenditure.

(3) Reimbursement is paid within 90 days of the expenditure,
in the case of a cash expenditure, or within 90 days of the end of
the billing period in which it was included, in the case of an
expenditure charged to a credit card or charge account.

(c) If reimbursement is not paid within the time authorized by
this section, the expenditure shall be reported on the campaign
statement as a nonmonetary contribution received on the 90th day
after the expenditure is paid, in the case of a cash expenditure, or
within 90 days of the end of the billing period in which it was
included, in the case of an expenditure charged to a credit card or
charge account.

(d) This section shall not be construed to authorize an incumbent
elected officer to make expenditures from any campaign bank
account for expenses other than those expenses associated with
his or her election to the specific office for which the account was
established and expenses associated with holding that office.

begin delete

SEC. 60.  

Section 89512.5 of the Government Code is amended
to read:

89512.5.  

(a) Subject to the provisions of subdivision (b), any
expenditure by a committee not subject to the trust imposed by
Section 89510 shall be reasonably related to a political, legislative,
or governmental purpose of the committee.

(b) Any expenditure by a committee that confers a substantial
personal benefit on any individual or individuals with authority to
approve the expenditure of campaign funds held by the committee,
shall be directly related to a political, legislative, or governmental
purpose of the committee.

end delete

begin delete SEC. 61. end delete
begin insert SEC. 39. end insert   

Section 89513 of the Government Code is amended
to read:

89513.  

This section governs the use of campaign funds for the
specific expenditures set forth in this section. It is the intent of the
Legislature that this section shall guide the interpretation of the
standard imposed by Section 89512 as applied to other expenditures
not specifically set forth in this section.

(a) (1) Campaign funds shall not be used to pay or reimburse
the candidate, the elected officer, or any individual or individuals
with authority to approve the expenditure of campaign funds held
by a committee, or employees or staff of the committee or the
elected officer’s governmental agency for travel expenses and
necessary accommodations except when these expenditures are
directly related to a political, legislative, or governmental purpose.

(2) For the purposes of this section, payments or reimbursements
for travel and necessary accommodations shall be considered as
directly related to a political, legislative, or governmental purpose
if the payments would meet standards similar to the standards of
the Internal Revenue Service pursuant to Sections 162 and 274 of
the Internal Revenue Code for deductions of travel expenses under
the federal income tax law.

(3) For the purposes of this section, payments or reimbursement
for travel by the household of a candidate or elected officer when
traveling to the same destination in order to accompany the
candidate or elected officer shall be considered for the same
purpose as the candidate’s or elected officer’s travel.

(4) Whenever campaign funds are used to pay or reimburse for
travel expenses and necessary accommodations, any mileage credit
that is earned or awarded pursuant to an airline bonus mileage
program shall be deemed personally earned by or awarded to the
individual traveler. Neither the earning or awarding of mileage
credit, nor the redeeming of credit for actual travel, shall be subject
to reporting.

(b) (1) Campaign funds shall not be used to pay for or reimburse
the cost of professional services unless the services are directly
related to a political, legislative, or governmental purpose.

(2) Expenditures by a committee to pay for professional services
reasonably required by the committee to assist it in the performance
of its administrative functions are directly related to a political,
legislative, or governmental purpose.

(3) Campaign funds shall not be used to pay health-related
expenses for a candidate, elected officer, or any individual or
individuals with authority to approve the expenditure of campaign
funds held by a committee, or members of his or her household.
“Health-related expenses” includes, but is not limited to,
examinations by physicians, dentists, psychiatrists, psychologists,
or counselors, expenses for medications, treatments, or medical
equipment, and expenses for hospitalization, health club dues, and
special dietary foods. However, campaign funds may be used to
pay employer costs of health care benefits of a bona fide employee
or independent contractor of the committee.

(c) Campaign funds shall not be used to pay or reimburse fines,
penalties, judgments, or settlements, except those resulting from
either of the following:

(1) Parking citations incurred in the performance of an activity
that was directly related to a political, legislative, or governmental
purpose.

(2) Any other action for which payment of attorney’s fees from
contributions would be permitted pursuant to this title.

(d) Campaign funds shall not be used for campaign, business,
or casual clothing, except specialty clothing that is not suitable for
everyday use, including, but not limited to, formal wear, if this
attire is to be worn by the candidate or elected officer and is directly
related to a political, legislative, or governmental purpose.

(e) (1) Except where otherwise prohibited by law, campaign
funds may be used to purchase or reimburse for the costs of
purchase of tickets to political fundraising events for the attendance
of a candidate, elected officer, or his or her immediate family, or
an officer, director, employee, or staff of the committee or the
elected officer’s governmental agency.

(2) Campaign funds shall not be used to pay for or reimburse
for the costs of tickets for entertainment or sporting events for the
candidate, elected officer, or members of his or her immediate
family, or an officer, director, employee, or staff of the committee,
unless their attendance at the event is directly related to a political,
legislative, or governmental purpose.

(3) The purchase of tickets for entertainment or sporting events
for the benefit of persons other than the candidate, elected officer,
or his or her immediate family are governed by subdivision (f).

(f) (1) Campaign funds shall not be used to make personal gifts
unless the gift is directly related to a political, legislative, or
governmental purpose. The refund of a campaign contribution
does not constitute the making of a gift.

(2) Nothing in this section shall prohibit the use of campaign
funds to reimburse or otherwise compensate a public employee
for services rendered to a candidate or committee while on
vacation, leave, or otherwise outside of compensated public time.

(3) An election victory celebration or similar campaign event,
or gifts with a total cumulative value of less than two hundred fifty
dollars ($250) in a single year made to an individual employee, a
committee worker, or an employee of the elected officer’s agency,
are considered to be directly related to a political, legislative, or
governmental purpose. For purposes of this paragraph, a gift to a
member of a person’s immediate family shall be deemed to be a
gift to that person.

(g) Campaign funds shall not be used to make loans other than
to organizations pursuant to Section 89515, or, unless otherwise
prohibited, to a candidate for elective office, political party, or
committee.

begin delete SEC. 62. end delete
begin insert SEC. 40. end insert   

Section 90002 of the Government Code is amended
to read:

90002.  

(a) Audits and investigations of lobbying firms and
lobbyist employers shall be performed on a biennial basis and shall
cover reports filed during a period of two years.

(b) If a lobbying firm or lobbyist employer keeps a separate
account for all receipts and payments for which reporting is
required by this chapter, the requirement of an audit under
subdivision (a) of Section 90001 shall be satisfied by an audit of
that account and the supporting documentation required to be
maintained by Section 86110.

(c) No audit or investigation of any candidate, controlled
committee, or committee primarily supporting or opposing a
candidate or a measure in connection with a report or statement
required by Chapter 4 (commencing with Section 84100), shall
begin until after the last date for filing the first report or statement
following the general, runoff, or special election for the office for
which the candidate ran, or following the election at which the
measure was adopted or defeated, except that audits and
investigations of statewide candidates, their controlled committees,
and committees primarily supporting or opposing those statewide
candidates who were defeated in the primary election and who are
not required to file statements for the general election may begin
after the last date for filing the first report or statement following
the primary election. When the campaign statements or reports of
a candidate, controlled committee, or a committee primarily
supporting or opposing a candidate are audited and investigated
pursuant to Section 90001, the audit and investigation shall cover
all campaign statements and reports filed for the primary and
general or special or runoff elections and any previous campaign
statement or report filed pursuant to Section 84200 since the last
election for that office, but shall exclude any statements or reports
which have previously been audited pursuant to Section 90001 or
90003. When the campaign statements or reports of a committee
primarily supporting or opposing a measure are audited and
investigated, the audit and investigation shall cover all campaign
statements and reports from the beginning date of the first
campaign statement filed by the committee in connection with the
measure. For all other committees, the audit and investigation shall
cover all campaign statements filed during the previous two
calendar years.

begin delete

SEC. 63.  

No reimbursement is required by this act pursuant to
Section 6 of Article XIII  B of the California Constitution because
the duties imposed on a local agency or school district by this act
were expressly included in a ballot measure approved by the voters
in a statewide election, within the meaning of Section 17556 of
the Government Code.

end delete

begin delete

SEC. 64.  

The Secretary of State shall, pursuant to subdivision
(b) of Section 81012 of the Government Code, submit Sections 3
to 62, inclusive, of this act to the voters for approval at a statewide
election in accordance with Section 9040 of the Elections Code.

end delete

begin delete

SEC. 65.  

Sections 1 and 2 of this act shall not become operative
unless and until the voters approve the amendments to the Political
Reform Act of 1974 (Title 9 (commencing with Section 81000)
of the Government Code) made by Sections 3 to 62, inclusive, of
this act, at the statewide election described in Section 64.

end delete

begin insert

begin insert SEC. 41. end insert   

end insert begin insert

No reimbursement is required by this act pursuant
to Section 6 of Article XIII B of the California Constitution for
certain costs that may be incurred by a local agency or school
district because, in that regard, 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.

end insert begin insert

However, if the Commission on State Mandates determines that
this act contains other costs mandated by the state, reimbursement
to local agencies and school districts for those costs shall be made
pursuant to Part 7 (commencing with Section 17500) of Division
4 of Title 2 of the Government Code.

end insert

begin insert

begin insert SEC. 42. end insert   

end insert begin 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.

end insert