BILL NUMBER: SB 1441 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 3, 2014
INTRODUCED BY Senators Lara, Corbett, De León, Hill, Monning, Roth,
Steinberg, and Torres
FEBRUARY 21, 2014
An act to amend Section 89503 82015
of the Government Code, relating to the Political Reform Act of 1974.
LEGISLATIVE COUNSEL'S DIGEST
SB 1441, as amended, Lara. Political Reform Act of 1974:
gifts. contributions.
Existing law, the Political Reform Act of 1974, provides for the
comprehensive regulation of campaign financing, including requiring
the reporting of campaign contributions and expenditures and imposing
other reporting and recordkeeping requirements on campaign
committees. "Contribution" is defined for purposes of the act as a
payment, a forgiveness of a loan, a payment of a loan by a third
party, or an enforceable promise to make a payment, except to the
extent that full and adequate consideration is received, unless it is
clear from the surrounding circumstances that it is not made for
political purposes. The definition does not include a payment made by
an occupant of a home or office for costs related to any meeting or
fundraising event held in the occupant's home or office if the costs
for the meeting or fundraising event are $500 or less.
The act prohibits a lobbyist from making, and an elected state
officer or candidate for elective state office from accepting, a
contribution if the lobbyist is registered to lobby the governmental
agency for which the candidate is seeking election or the
governmental agency of the elected state officer.
This bill would revise the definition of "contribution" to include
a payment made by a lobbyist or a cohabitant of a lobbyist for costs
related to a fundraising event held at the home of the lobbyist, as
specified. The bill would make these payments attributable to the
lobbyist for purposes of the prohibition against a lobbyist making a
contribution to specified candidates and elected officers.
The bill would also revise the definition of "contribution" to
include a payment made by a lobbying firm for costs related to a
fundraising event held at the office of the lobbying firm.
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.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
The Political Reform Act of 1974, an initiative measure, provides
that the Legislature may amend the act to further the act's purposes
upon a 2/3 vote of each house and compliance with specified
procedural requirements.
This bill would declare that it furthers the purposes of the act.
The Political Reform Act of 1974 places limits on the value of
gifts that may be received by elected state officers, elected
officers of local government agencies, candidates for those offices,
members of state board or commissions, and designated employees of
state or local government agencies. Under the act, those individuals
may not accept gifts from a single source in a calendar year with a
total value of more than $250, with specified exceptions. The act
directs the Fair Political Practices Commission to adjust this limit
biennially to reflect changes in the Consumer Price Index.
This bill would make nonsubstantive changes to those provisions.
Vote: majority 2/3 . Appropriation:
no. Fiscal committee: no yes .
State-mandated local program: no yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 82015 of the
Government Code is amended to read:
82015. (a) "Contribution" means a payment, a forgiveness of a
loan, a payment of a loan by a third party, or an enforceable promise
to make a payment , except to the extent that full and
adequate consideration is received, unless it is clear from the
surrounding circumstances that it is not made for political purposes.
(b) (1) A payment made at the behest of a committee ,
as defined in subdivision (a) of Section 82013 , is a
contribution to the committee , unless full and adequate
consideration is received from the committee for making the payment.
(2) A payment made at the behest of a candidate is a contribution
to the candidate , unless the criteria in either
subparagraph (A) or (B) are satisfied:
(A) Full and adequate consideration is received from the
candidate.
(B) It is clear from the surrounding circumstances that the
payment was made for purposes unrelated to his or her candidacy for
elective office. The following types of payments are presumed to be
for purposes unrelated to a candidate's candidacy for elective
office:
(i) A payment made principally for personal purposes, in which
case it may be considered a gift under the provisions of Section
82028. Payments that are otherwise subject to the limits of Section
86203 are presumed to be principally for personal purposes.
(ii) A payment made by a state, local, or federal governmental
agency or by a nonprofit organization that is exempt from taxation
under Section 501(c)(3) of the Internal Revenue Code.
(iii) A payment not covered by clause (i), made principally for
legislative, governmental, or charitable purposes, in which case it
is neither a gift nor a contribution. However, payments of this type
that are made at the behest of a candidate who is an elected officer
shall be reported within 30 days following the date on which the
payment or payments equal or exceed five thousand dollars ($5,000) in
the aggregate from the same source in the same calendar year in
which they are made. The report shall be filed by the elected officer
with the elected officer's agency and shall be a public record
subject to inspection and copying pursuant to subdivision (a) of
Section 81008. The report shall contain the following information:
name of payor, address of payor, amount of the payment, date or dates
the payment or payments were made, the name and address of the
payee, a brief description of the goods or services provided or
purchased, if any, and a description of the specific purpose or event
for which the payment or payments were made. Once the
five-thousand-dollar ($5,000) aggregate threshold from a single
source has been reached for a calendar year, all payments for the
calendar year made by that source must shall
be disclosed within 30 days after the date the threshold was
reached or the payment was made, whichever occurs later. Within 30
days after receipt of the report, state agencies shall forward a copy
of these reports to the Fair Political Practices
Commission, and local agencies shall forward a copy of these reports
to the officer with whom elected officers of that agency file their
campaign statements.
(C) For purposes of subparagraph (B), a payment is made for
purposes related to a candidate's candidacy for elective office if
all or a portion of the payment is used for election-related
activities. For purposes of this subparagraph, "election-related
activities" shall include, but are not limited to, the following:
(i) Communications that contain express advocacy of the nomination
or election of the candidate or the defeat of his or her opponent.
(ii) Communications that contain reference to the candidate's
candidacy for elective office, the candidate's election campaign, or
the candidate's or his or her opponent's qualifications for elective
office.
(iii) Solicitation of contributions to the candidate or to third
persons for use in support of the candidate or in opposition to his
or her opponent.
(iv) Arranging, coordinating, developing, writing, distributing,
preparing, or planning of any communication or activity described in
clause (i), (ii), or (iii).
(v) Recruiting or coordinating campaign activities of campaign
volunteers on behalf of the candidate.
(vi) Preparing campaign budgets.
(vii) Preparing campaign finance disclosure statements.
(viii) Communications directed to voters or potential voters as
part of activities encouraging or assisting persons to vote if the
communication contains express advocacy of the nomination or election
of the candidate or the defeat of his or her opponent.
(D) A contribution made at the behest of a candidate for a
different candidate or to a committee not controlled by the behesting
candidate is not a contribution to the behesting candidate.
(3) A payment made at the behest of a member of the Public
Utilities Commission, made principally for legislative, governmental,
or charitable purposes, is not a contribution. However, payments of
this type shall be reported within 30 days following the date on
which the payment or payments equal or exceed five thousand dollars
($5,000) in the aggregate from the same source in the same calendar
year in which they are made. The report shall be filed by the member
with the Public Utilities Commission and shall be a public record
subject to inspection and copying pursuant to subdivision (a) of
Section 81008. The report shall contain the following information:
name of payor, address of payor, amount of the payment, date or dates
the payment or payments were made, the name and address of the
payee, a brief description of the goods or services provided or
purchased, if any, and a description of the specific purpose or event
for which the payment or payments were made. Once the
five-thousand-dollar ($5,000) aggregate threshold from a single
source has been reached for a calendar year, all payments for the
calendar year made by that source must shall
be disclosed within 30 days after the date the threshold was
reached or the payment was made, whichever occurs later. Within 30
days after receipt of the report, the Public Utilities Commission
shall forward a copy of these reports to the Fair Political Practices
Commission.
(c) "Contribution" includes the purchase of tickets for events
such as dinners, luncheons, rallies, and similar fundraising events;
the candidate's own money or property used on behalf of his or her
candidacy , other than personal funds of the candidate
used to pay either a filing fee for a declaration of candidacy or a
candidate statement prepared pursuant to Section 13307 of the
Elections Code; the granting of discounts or rebates not extended to
the public generally or the granting of discounts or rebates by
television and radio stations and newspapers not extended on an equal
basis to all candidates for the same office; and the
payment of compensation by any person for the personal services or
expenses of any other person if the services are rendered or expenses
incurred on behalf of a candidate or committee without payment of
full and adequate consideration.
(d) "Contribution" further includes any transfer of anything of
value received by a committee from another committee, unless full and
adequate consideration is received.
(e) "Contribution" does not include amounts received pursuant to
an enforceable promise to the extent those amounts have been
previously reported as a contribution. However, the fact that those
amounts have been received shall be indicated in the appropriate
campaign statement.
(f) "Contribution" (1)
Except as provided in paragraph (2) or (3), "contribution"
does not include a payment made by an occupant of a home or office
for costs related to any meeting or fundraising event held in the
occupant's home or office if the costs for the meeting or fundraising
event are five hundred dollars ($500) or less.
(2) "Contribution" includes a payment made by a lobbyist or a
cohabitant of a lobbyist for costs related to a fundraising event
held at the home of the lobbyist, including the value of the use of
the home as a fundraising event venue. A payment described in this
paragraph shall be attributable to the lobbyist for purposes of
Section 85702.
(3) "Contribution" includes a payment made by a lobbying firm for
costs related to a fundraising event held at the office of the
lobbying firm, including the value of the use of the office as a
fundraising event venue.
(g) Notwithstanding the foregoing definition of "contribution,"
the term does not include volunteer personal services or payments
made by any individual for his or her own travel expenses if the
payments are made voluntarily without any understanding or agreement
that they shall be, directly or indirectly, repaid to him or her.
(h) "Contribution" further includes the payment of public moneys
by a state or local governmental agency for a communication to the
public that satisfies both of the following:
(1) The communication expressly advocates the election or defeat
of a clearly identified candidate or the qualification, passage, or
defeat of a clearly identified measure, or, taken as a whole and in
context, unambiguously urges a particular result in an election.
(2) The communication is made at the behest of the affected
candidate or committee.
SEC. 2. No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.
SEC. 3. 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.
SECTION 1. Section 89503 of the Government Code
is amended to read:
89503. (a) An elected state officer, elected officer of a local
government agency, or other individual specified in Section 87200
shall not accept gifts from any single source in any calendar year
with a total value of more than two hundred fifty dollars ($250).
(b) (1) A candidate for elective state office, judicial office, or
elective office in a local government agency shall not accept gifts
from any single source in any calendar year with a total value of
more than two hundred fifty dollars ($250). A person is a candidate
for purposes of this subdivision when the person has filed a
statement of organization as a committee for election to a state or
local office, a declaration of intent, or a declaration of candidacy,
whichever occurs first. A person is not a candidate for purposes of
this subdivision after he or she is sworn into the elective office,
or, if the person lost the election, after the person has terminated
his or her campaign statement filing obligations for that office
pursuant to Section 84214 or after certification of the election
results, whichever occurs first.
(2) Paragraph (1) shall not apply to any person who is a candidate
as described in paragraph (1) for judicial office on or before
December 31, 1996.
(c) A member of a state board or commission or designated employee
of a state or local government agency shall not accept gifts from
any single source in any calendar year with a total value of more
than two hundred fifty dollars ($250) if the member or employee would
be required to report the receipt of income or gifts from that
source on his or her statement of economic interests.
(d) This section shall not apply to a person in his or her
capacity as a judge. This section shall not apply to a person in his
or her capacity as a part-time member of the governing board of any
public institution of higher education unless that position is an
elective office.
(e) This section shall not prohibit or limit the following:
(1) Payments, advances, or reimbursements for travel and related
lodging and subsistence permitted by Section 89506.
(2) Wedding gifts and gifts exchanged between individuals on
birthdays, holidays, and other similar occasions, provided that the
gifts exchanged are not substantially disproportionate in value.
(f) Beginning on January 1, 1993, the Commission shall adjust the
gift limitation in this section on January 1 of each odd-numbered
year to reflect changes in the Consumer Price Index, rounded to the
nearest ten dollars ($10).
(g) The limitations in this section are in addition to the
limitations on gifts in Section 86203.