Amended in Senate May 28, 2014

Senate Bill No. 1379

Introduced by Senator Huff

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(Coauthors: Senators Berryhill, Cannella, Fuller, Gaines, Knight, Morrell, Nielsen, Vidak, Walters, and Wyland)

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February 21, 2014

begin delete An act to amend Section 1748.1 of the Civil Code, relating to credit cards. end delete begin insert An act to amend Sections 85305, 89513, and 89518 of, and to add Sections 84208, 85301.7, 85305.1, and 86205.5 to, the Government Code, and to amend Sections 68 and 86 of the Penal Code, relating to end insert begin insert political reform, and declaring the urgency thereof, to take effect immediately. end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 1379, as amended, Huff. begin delete Credit cards. end delete begin insert Political reform. end insert

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Existing law, the Political Reform Act of 1974, provides for the comprehensive regulation of campaign financing, including requiring the reporting of campaign contributions. The act imposes a contribution limit of $3,000 on contributions made to, and received by, candidates for elective state offices that are not statewide elective offices. The act is administered and enforced by the Fair Political Practices Commission, which is authorized to adjust the contribution limit to reflect changes in the Consumer Price Index, as specified. The act does not limit the amount of contributions that a person may make to a committee that is primarily formed to support or oppose one or more ballot measures. The act prohibits a candidate for elective state office or a committee controlled by that candidate from making a contribution to another candidate for elective state office in excess of the contribution limit for elective state offices.

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The act imposes various restrictions and reporting requirements on Members of the Legislature and candidates for either house of the Legislature, including prohibiting or restricting earned income from a lobbyist or lobbyist employer, restricting the receipt of gifts, and restricting the purposes for which campaign funds may be expended.

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This bill would prohibit a person from making to a committee controlled by a candidate for elective office that is primarily formed to support or oppose one or more ballot measures, and prohibit such a committee from receiving, a contribution in excess of the contribution limit for elective state offices, as specified. The bill would prohibit a candidate for any elective office, or the candidate’s controlled committees, from making a contribution to another candidate for elective office or a committee controlled by a candidate that is primarily formed to support or oppose one or more ballot measures in excess of the contribution limit established for candidates for elective state office.

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This bill would prohibit a committee controlled by a candidate for elective office that is primarily formed to support or oppose one or more ballot measures from expending campaign funds to make a contribution or other transfer of campaign funds to a committee for a purpose other than supporting or opposing a ballot measure that the controlled committee was primarily formed to support or oppose.

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This bill would prohibit a lobbyist or lobbyist employer from providing any compensation to a spouse or dependent of a Member or candidate, except as specified. The bill would prohibit campaign funds from being used to compensate a spouse or dependent of a Member of the Legislature or of a candidate for either house of the Legislature. The bill would prohibit the use of campaign funds from being used to pay a fine, a penalty, or legal fees arising out of a criminal violation or to pay a spouse or dependent of a Member of the Legislature or a candidate for either house of the Legislature, except as specified.

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This bill would require a Member of the Legislature or a candidate for either house of the Legislature to report to the Secretary of State a contribution of one thousand dollars ($1,000) or greater within three business days of receipt of the contribution.

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A violation of the act’s provisions is punishable as a misdemeanor. By expanding the scope of an existing crime, this bill would impose a state-mandated local program.

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Existing law subjects any member of the Legislature or any member of the legislative body of a city, county, city and county, school district, or other special district, and every executive or ministerial officer, employee, or appointee of the state, a county or city, or political subdivision, who asks for or receives a bribe in exchange for influence over his or her official action to imprisonment in a state prison for 2, 3, or 4 years, and imposes prescribed restitution fines based on whether a bribe has actually been received.

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This bill would increase the punishment to 4, 6, or 8 years in state prison and would increase the restitution fines to twice the original amount.

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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.

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

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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.

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

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This bill would declare that it is to take effect immediately as an urgency statute.

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The Song-Beverly Credit Card Act of 1971 generally regulates credit card transactions and prohibits a retailer in any sales, service, or lease transaction with a consumer from imposing a surcharge on a cardholder who elects to use a credit card in lieu of payment by cash, check, or similar means. The act requires a retailer who willfully violates this prohibition to be liable to the cardholder for 3 times the amount at which actual damages are assessed, as specified.

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This bill would make technical, nonsubstantive changes to these provisions.

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

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

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begin insert SECTION 1. end insert   

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begin insert This act shall be known and may be cited as end insert begin insert the
Legislative Reform and Transparency Act of 2014 end insert begin insert . end insert

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begin insert SEC. 2. end insert   

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begin insert Section 84208 is added to the end insert begin insert Government Code end insert begin insert , to
read: end insert

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begin insert 84208. end insert   

In addition to any other reporting requirements of this
title, a Member of the Legislature or a candidate for either house
of the Legislature shall report to the Secretary of State a
contribution of one thousand dollars ($1,000) or greater within
three business days of receipt of the contribution.

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begin insert SEC. 3. end insert   

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begin insert Section 85301.7 is added to the end insert begin insert Government Code end insert begin insert , to
read: end insert

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begin insert 85301.7. end insert   

A person shall not make to a committee controlled
by a candidate for elective office that is primarily formed to support
or oppose one or more ballot measures, and such a committee
shall not accept from a person, a contribution in excess of the
contribution limit established pursuant to subdivision (a) of Section
85301, as adjusted by the Commission pursuant to Section 83124.
The contribution limit described in this section shall be the
aggregate amount of contributions that a candidate may accept
for his or her controlled committees that are primarily formed to
support or oppose one or more ballot measures, regardless of the
number of such committees controlled by that candidate.

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begin insert SEC. 4. end insert   

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begin insert Section 85305 of the end insert begin insert Government Code end insert begin insert is amended to
read: end insert

85305.  

A candidate for elective begin delete state end delete office or begin insert a end insert committee
controlled by that candidate begin delete may end delete begin insert shall end insert not make begin delete any end delete begin insert a end insert contribution
to begin delete any other end delete begin insert another end insert candidate for elective begin delete state end delete office begin insert or to a
committee controlled by another candidate for elective office that
is primarily formed to support or oppose one or more ballot
measures end insert in excess of the begin delete limits set forth in end delete begin insert limit established
pursuant to end insert subdivision (a) of Section begin delete 85301. end delete begin insert 85301, as adjusted
pursuant to Section 83124. end insert

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begin insert SEC. 5. end insert   

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begin insert Section 85305.1 is added to the end insert begin insert Government Code end insert begin insert , to
read: end insert

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begin insert 85305.1. end insert   

Notwithstanding any other provision of this title or
Section 18680 of the Elections Code, a committee controlled by a
candidate for elective office that is primarily formed to support or
oppose one or more ballot measures shall not expend campaign
funds to make a contribution or other transfer of campaign funds
to a committee for a purpose other than supporting or opposing
a ballot measure that the controlled committee was primarily
formed to support or oppose.

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begin insert SEC. 6. end insert   

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begin insert Section 86205.5 is added to the end insert begin insert Government Code end insert begin insert , to
read: end insert

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begin insert 86205.5. end insert   

A lobbyist or lobbyist employer shall not provide any
compensation to a spouse or dependent of a Member of the
Legislature or a candidate for either house of the Legislature,
unless the compensation is for services performed in the ordinary
course of business or employment that is unrelated to an election,
campaign activity, or services provided for either house of the
Legislature.

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begin insert SEC. 7. end insert   

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begin insert Section 89513 of the end insert begin insert Government Code end insert begin insert is amended to
read: end insert

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 a
candidate, elected officer, his or her representative, or a member
of the candidate’s household for travel expenses and necessary
accommodations, the expenditure shall be reported as required by
Section 84211.

(5) 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 pursuant to Section 84211.

(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.

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(h) Campaign funds shall not be used by a Member of the
Legislature or a candidate for either house of the Legislature to
pay a fine, a penalty, or legal fees arising out of a criminal
violation or an alleged criminal violation unless those campaign
funds are received or expended by a committee for the legal defense
of the Member or candidate.

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begin insert SEC. 8. end insert   

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begin insert Section 89518 of the end insert begin insert Government Code end insert begin insert is amended to
read: end insert

89518.  

(a) Campaign funds shall not be used to compensate
a candidate or elected officer for the performance of political,
legislative, or governmental activities, except for reimbursement
of out-of-pocket expenses incurred for political, legislative, or
governmental purposes.

(b) Campaign funds shall not be used to compensate any
individual or individuals with authority to approve the expenditure
of campaign funds for the performance of political, legislative, or
governmental activities, except as provided in subdivision (b) of
Section 89513 and for reimbursement of out-of-pocket expenses
incurred for political, legislative, or governmental purposes.

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(c) Campaign funds of a Member of the Legislature or of a
candidate for either house of the Legislature shall not be used to
compensate the spouse or a dependent of the Member or candidate.

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begin insert SEC. 9. end insert   

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begin insert Section 68 of the end insert begin insert Penal Code end insert begin insert is amended to read: end insert

68.  

(a) Every executive or ministerial officer, employee, or
appointee of the State of California, begin delete a county or city end delete begin insert a city, county,
city and county end insert therein, or a political subdivision thereof, who
asks, receives, or agrees to receive, any bribe, upon any agreement
or understanding that his or her vote, opinion, or action upon any
matter then pending, or that may be brought before him or her in
his or her official capacity, shall be influenced thereby, is
punishable by imprisonment in the state prison for begin delete two, three, or
four end delete begin insert four, six, or eight end insert years and, in cases in which no bribe has
been actually received, by a restitution fine of not less than begin delete two end delete
begin insert four end insert thousand dollars begin delete ($2,000) end delete begin insert ($4,000) end insert or not more than begin delete ten end delete begin insert twenty end insert
thousand dollars begin delete ($10,000) end delete begin insert ($20,000) end insert or, in cases in which a bribe
was actually received, by a restitution fine of at least the actual
amount of the bribe received or begin delete two end delete begin insert four end insert thousand dollars begin delete ($2,000) end delete
begin insert ($4,000) end insert , whichever is greater, or any larger amount of not more
than double the amount of any bribe received or begin delete ten end delete begin insert twenty end insert
thousand dollars begin delete ($10,000) end delete begin insert ($20,000) end insert , whichever is greater, and,
in addition thereto, forfeits his or her office, employment, or
appointment, and is forever disqualified from holding any office,
employment, or appointment, in this state.

(b) In imposing a restitution fine pursuant to this section, the
court shall consider the defendant’s ability to pay the fine.

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begin insert SEC. 10. end insert   

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begin insert Section 86 of the end insert begin insert Penal Code end insert begin insert is amended to read: end insert

86.  

begin insert (a) end insert begin insert   end insert Every Member of either house of the Legislature, or
any member of the legislative body of a city, county, city and
county, school district, or other special district, who asks, receives,
or agrees to receive, any bribe, upon any understanding that his or
her official vote, opinion, judgment, or action shall be influenced
thereby, or shall give, in any particular manner, or upon any
particular side of any question or matter upon which he or she may
be required to act in his or her official capacity, or gives, or offers
or promises to give, any official vote in consideration that another
Member of the Legislature, or another member of the legislative
body of a city, county, city and county, school district, or other
special district shall give this vote either upon the same or another
question, is punishable by imprisonment in the state prison for
begin delete two, three, or four end delete begin insert four, six, or eight end insert years and, in cases in which
no bribe has been actually received, by a restitution fine of not less
than begin delete two end delete begin insert four end insert thousand dollars begin delete ($2,000) end delete begin insert ($4,000) end insert or not more than
begin delete ten end delete begin insert twenty end insert thousand dollars begin delete ($10,000) end delete begin insert ($20,000) end insert or, in cases in
which a bribe was actually received, by a restitution fine of at least
the actual amount of the bribe received or begin delete two end delete begin insert four end insert thousand dollars
begin delete ($2,000) end delete begin insert ($4,000) end insert , whichever is greater, or any larger amount of
not more than double the amount of any bribe received or begin delete ten end delete
begin insert twenty end insert thousand dollars begin delete ($10,000) end delete begin insert ($20,000) end insert , whichever is greater.

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In

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begin insert (b) end insert begin insert   end insert begin insert In end insert imposing a fine under this section, the court shall consider
the defendant’s ability to pay the fine.

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begin insert SEC. 11. end insert   

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No reimbursement is required by this act pursuant
to Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIII B of the California
Constitution.

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begin insert SEC. 12. end insert   

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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.

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begin insert SEC. 13. end insert   

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This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:

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In order to implement these proposals at the earliest possible
time before the 2014 General Election, it is necessary that this act
take immediate effect.

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SECTION 1.  

Section 1748.1 of the Civil Code is amended to
read:

1748.1.  

(a) A retailer in any sales, service, or lease transaction
with a consumer shall not impose a surcharge on a cardholder who
elects to use a credit card in lieu of payment by cash, check, or
similar means. A retailer may, however, offer discounts for the
purpose of inducing payment by cash, check, or other means not
involving the use of a credit card, provided that the discount is
offered to all prospective buyers.

(b) A retailer who willfully violates this section by imposing a
surcharge on a cardholder who elects to use a credit card and who
fails to pay that amount to the cardholder within 30 days of a
written demand by the cardholder to the retailer by certified mail,
shall be liable to the cardholder for three times the amount at which
actual damages are assessed. The cardholder shall also be entitled
to recover reasonable attorney’s fees and costs incurred in the
action.

A cause of action under this section may be brought in small
claims court, if it does not exceed the jurisdiction of that court, or
in any other appropriate court.

(c) A consumer shall not be deemed to have elected to use a
credit card in lieu of another means of payment for purposes of
this section in a transaction with a retailer if only credit cards are
accepted by that retailer in payment for an order made by a
consumer over a telephone, and only cash is accepted at a public
store or other facility of the same retailer.

(d) Charges for third-party credit card guarantee services, when
added to the price charged by the retailer if cash were to be paid,
shall be deemed surcharges for purposes of this section even if
they are payable directly to the third party or are charged
separately.

(e) It is the intent of the Legislature to promote the effective
operation of the free market and protect consumers from deceptive
price increases for goods and services by prohibiting credit card
surcharges and encouraging the availability of discounts by those
retailers who wish to offer a lower price for goods and services
purchased by some form of payment other than credit card.

(f) This section does not apply to charges for payment by credit
card or debit card that are made by an electrical, gas, or water
corporation and approved by the Public Utilities Commission
pursuant to Section 755 of the Public Utilities Code.

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