SB 1441, as amended, Lara. Political Reform Act of 1974: 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.
Vote: 2⁄3. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.
The people of the State of California do enact as follows:
Section 82015 of the Government Code is
2amended to read:
(a) “Contribution” means a payment, a forgiveness of
4a loan, a payment of a loan by a third party, or an enforceable
5promise to make a payment, except to the extent that full and
6adequate consideration is received, unless it is clear from the
7surrounding circumstances that it is not made for political purposes.
8(b) (1) A payment made at the behest of a committee, as defined
9in subdivision (a) of Section 82013, is a
contribution to the
P3 1committee, unless full and adequate consideration is received from
2the committee for making the payment.
3(2) A payment made at the behest of a candidate is a contribution
4to the candidate, unless the criteria in either subparagraph (A) or
5(B) are satisfied:
6(A) Full and adequate consideration is received from the
7candidate.
8(B) It is clear from the surrounding circumstances that the
9payment was made for purposes unrelated to his or her candidacy
10for elective office. The following types of payments are presumed
11to be for purposes unrelated to a candidate’s candidacy for elective
12
office:
13(i) A payment made principally for personal purposes, in which
14case it may be considered a gift under the provisions of Section
1582028. Payments that are otherwise subject to the limits of Section
1686203 are presumed to be principally for personal purposes.
17(ii) A payment made by a state, local, or federal governmental
18agency or by a nonprofit organization that is exempt from taxation
19under Section 501(c)(3) of the Internal Revenue Code.
20(iii) A payment not covered by clause (i), made principally for
21legislative, governmental, or charitable purposes, in which case it
22is neither a gift nor a contribution. However, payments of this type
23that are made at the behest of a candidate who is an elected officer
24shall be reported within 30 days following the date on which the
25payment or payments equal or exceed five
thousand dollars
26($5,000) in the aggregate from the same source in the same
27calendar year in which they are made. The report shall be filed by
28the elected officer with the elected officer’s agency and shall be
29a public record subject to inspection and copying pursuant to
30subdivision (a) of Section 81008. The report shall contain the
31following information: name of payor, address of payor, amount
32of the payment, date or dates the payment or payments were made,
33the name and address of the payee, a brief description of the goods
34or services provided or purchased, if any, and a description of the
35specific purpose or event for which the payment or payments were
36made. Once the five-thousand-dollar ($5,000) aggregate threshold
37from a single source has been reached for a calendar year, all
38payments for the calendar year made by that source shall be
39disclosed within 30 days after the date the threshold was reached
40or the payment was made, whichever occurs later. Within 30 days
P4 1after receipt of the report, state agencies shall forward a copy of
2these reports to the Commission, and local agencies shall forward
3a copy of these reports to the officer with whom elected officers
4of that agency file their campaign statements.
5(C) For purposes of subparagraph (B), a payment is made for
6purposes related to a candidate’s candidacy for elective office if
7all or a portion of the payment is used for election-related activities.
8For purposes of this subparagraph, “election-related activities”
9shall include, but are not limited to, the following:
10(i) Communications that contain express advocacy of the
11nomination or election of the candidate or the defeat of his or her
12opponent.
13(ii) Communications that contain reference to the candidate’s
14candidacy for elective office, the candidate’s election campaign,
15or the
candidate’s or his or her opponent’s qualifications for
16elective office.
17(iii) Solicitation of contributions to the candidate or to third
18persons for use in support of the candidate or in opposition to his
19or her opponent.
20(iv) Arranging, coordinating, developing, writing, distributing,
21preparing, or planning of any communication or activity described
22in clause (i), (ii), or (iii).
23(v) Recruiting or coordinating campaign activities of campaign
24volunteers on behalf of the candidate.
25(vi) Preparing campaign budgets.
26(vii) Preparing campaign finance disclosure statements.
27(viii) Communications directed to voters or potential
voters as
28part of activities encouraging or assisting persons to vote if the
29communication contains express advocacy of the nomination or
30election of the candidate or the defeat of his or her opponent.
31(D) A contribution made at the behest of a candidate for a
32different candidate or to a committee not controlled by the
33behesting candidate is not a contribution to the behesting candidate.
34(3) A payment made at the behest of a member of the Public
35Utilities Commission, made principally for legislative,
36governmental, or charitable purposes, is not a contribution.
37However, payments of this type shall be reported within 30 days
38following the date on which the payment or payments equal or
39exceed five thousand dollars ($5,000) in the aggregate from the
40same source in the same calendar year in which they are made.
P5 1The report shall be filed by the member with the Public Utilities
2
Commission and shall be a public record subject to inspection and
3copying pursuant to subdivision (a) of Section 81008. The report
4shall contain the following information: name of payor, address
5of payor, amount of the payment, date or dates the payment or
6payments were made, the name and address of the payee, a brief
7description of the goods or services provided or purchased, if any,
8and a description of the specific purpose or event for which the
9payment or payments were made. Once the five-thousand-dollar
10($5,000) aggregate threshold from a single source has been reached
11for a calendar year, all payments for the calendar year made by
12that source shall be disclosed within 30 days after the date the
13threshold was reached or the payment was made, whichever occurs
14later. Within 30 days after receipt of the report, the Public Utilities
15Commission shall forward a copy of these reports to the Fair
16Political Practices Commission.
17(c) “Contribution” includes the purchase of tickets for events
18such as dinners, luncheons, rallies, and similar fundraising events;
19the candidate’s own money or property used on behalf of his or
20her candidacy, other than personal funds of the candidate used to
21pay either a filing fee for a declaration of candidacy or a candidate
22statement prepared pursuant to Section 13307 of the Elections
23Code;
the granting of discounts or rebates not extended to the
24public generally or the granting of discounts or rebates by television
25and radio stations and newspapers not extended on an equal basis
26to all candidates for the same office; and the payment of
27compensation by any person for the personal services or expenses
28of any other person if the services are rendered or expenses incurred
29on behalf of a candidate or committee without payment of full and
30adequate consideration.
31(d) “Contribution” further includes any transfer of anything of
32value received by a committee from another committee, unless
33full and adequate consideration is received.
34(e) “Contribution” does not include amounts received pursuant
35to an enforceable promise to the extent those amounts have been
36previously
reported as a contribution. However, the fact that those
37amounts have been received shall be indicated in the appropriate
38campaign statement.
39(f) (1) Except as provided in paragraph (2) or (3), “contribution”
40does not include a payment made by an occupant of a home or
P6 1office for costs related to any meeting or fundraising event held
2in the occupant’s home or office if the costs for the meeting or
3fundraising event are five hundred dollars ($500) or less.
4(2) “Contribution” includes a payment made by a lobbyist or a
5cohabitant of a lobbyist for costs related to a fundraising
event
6held at the home of the lobbyist, including the value of the use of
7the home as a fundraising event venue. A payment described in
8this paragraph shall be attributable to the lobbyist for purposes of
9Section 85702.
10(3) “Contribution” includes a payment made by a lobbying firm
11for costs related to a fundraising event held at the office of the
12lobbying firm, including the value of the use of the office as a
13fundraising event venue.
14(g) Notwithstanding the foregoing definition of “contribution,”
15the term does not include volunteer personal services or payments
16made by any individual for his or her own travel expenses if the
17payments are made voluntarily without any understanding or
18agreement that they shall be, directly or indirectly, repaid to him
19
or her.
20(h) “Contribution” further includes the payment of public
21moneys by a state or local governmental agency for a
22communication to the public that satisfies both of the following:
23(1) The communication expressly advocates the election or
24defeat of a clearly identified candidate or the qualification, passage,
25or defeat of a clearly identified measure, or, taken as a whole and
26in context, unambiguously urges a particular result in an election.
27(2) The communication is made at the behest of the affected
28candidate or committee.
begin insertSection 82015 of the end insertbegin insertGovernment Codeend insertbegin insert is
30amended to read:end insert
(a) “Contribution” means a payment, a forgiveness of
32a loan, a payment of a loan by a third party, or an enforceable
33promise to make a payment except to the extent that full and
34adequate consideration is received, unless it is clear from the
35surrounding circumstances that it is not made for political purposes.
36(b) (1) A payment made at the behest of a committeebegin insert,end insert as defined
37in subdivision (a) of Section 82013begin insert,end insert is a contribution to the
38committee unless full and adequate consideration is received from
39the committee for making the
payment.
P7 1(2) A payment made at the behest of a candidate is a contribution
2to the candidate unless the criteria in either subparagraph (A) or
3(B) are satisfied:
4(A) Full and adequate consideration is received from the
5candidate.
6(B) It is clear from the surrounding circumstances that the
7payment was made for purposes unrelated to his or her candidacy
8for elective office. The following types of payments are presumed
9to be for purposes unrelated to a candidate’s candidacy for elective
10office:
11(i) A payment made principally for personal purposes, in which
12case it may be considered a gift under the provisions of Section
1382028. Payments that are otherwise subject to the limits of Section
1486203 are presumed to be principally for personal purposes.
15(ii) A payment made by a state, local, or federal governmental
16agency or by a nonprofit organization that is exempt from taxation
17under Section 501(c)(3) of the Internal Revenue Code.
18(iii) A payment not covered by clause (i), made principally for
19legislative, governmental, or charitable purposes, in which case it
20is neither a gift nor a contribution. However, payments of this type
21that are made at the behest of a candidate who is an elected officer
22shall be reported within 30 days following the date on which the
23payment or payments equal or exceed five thousand dollars
24($5,000) in the aggregate from the same source in the same
25calendar year in which they are made. The report shall be filed by
26the elected officer with the elected officer’s agency and shall be
27a public record subject to inspection and copying pursuant to
28subdivision (a) of Section 81008. The report shall contain the
29
following information: name of payor, address of payor, amount
30of the payment, date or dates the payment or payments were made,
31the name and address of the payee, a brief description of the goods
32or services provided or purchased, if any, and a description of the
33specific purpose or event for which the payment or payments were
34made. Once the five-thousand-dollar ($5,000) aggregate threshold
35from a single source has been reached for a calendar year, all
36payments for the calendar year made by that sourcebegin delete mustend deletebegin insert shallend insert be
37disclosed within 30 days after the date the threshold was reached
38or the payment was made, whichever occurs later. Within 30 days
39after receipt of the report, state agencies shall forward a copy of
40these reports to thebegin delete Fair Political Practicesend delete
Commission, and local
P8 1agencies shall forward a copy of these reports to the officer with
2whom elected officers of that agency file their campaign
3statements.
4(C) For purposes of subparagraph (B), a payment is made for
5purposes related to a candidate’s candidacy for elective office if
6all or a portion of the payment is used for election-related activities.
7For purposes of this subparagraph, “election-related activities”
8shall include, but are not limited to, the following:
9(i) Communications that contain express advocacy of the
10nomination or election of the candidate or the defeat of his or her
11opponent.
12(ii) Communications that contain reference to the candidate’s
13candidacy for elective office, the candidate’s election campaign,
14or the candidate’s or his or her opponent’s qualifications for
15elective
office.
16(iii) Solicitation of contributions to the candidate or to third
17persons for use in support of the candidate or in opposition to his
18or her opponent.
19(iv) Arranging, coordinating, developing, writing, distributing,
20preparing, or planning of any communication or activity described
21in clause (i), (ii), or (iii).
22(v) Recruiting or coordinating campaign activities of campaign
23volunteers on behalf of the candidate.
24(vi) Preparing campaign budgets.
25(vii) Preparing campaign finance disclosure statements.
26(viii) Communications directed to voters or potential voters as
27part of activities encouraging or assisting persons to
vote if the
28communication contains express advocacy of the nomination or
29election of the candidate or the defeat of his or her opponent.
30(D) A contribution made at the behest of a candidate for a
31different candidate or to a committee not controlled by the
32behesting candidate is not a contribution to the behesting candidate.
33(3) A payment made at the behest of a member of the Public
34Utilities Commission, made principally for legislative,
35governmental, or charitable purposes, is not a contribution.
36However, payments of this type shall be reported within 30 days
37following the date on which the payment or payments equal or
38exceed five thousand dollars ($5,000) in the aggregate from the
39same source in the same calendar year in which they are made.
40The report shall be filed by the member with the Public Utilities
P9 1Commission and shall be a public record subject to inspection and
2copying
pursuant to subdivision (a) of Section 81008. The report
3shall contain the following information: name of payor, address
4of payor, amount of the payment, date or dates the payment or
5payments were made, the name and address of the payee, a brief
6description of the goods or services provided or purchased, if any,
7and a description of the specific purpose or event for which the
8payment or payments were made. Once the five-thousand-dollar
9($5,000) aggregate threshold from a single source has been reached
10for a calendar year, all payments for the calendar year made by
11that sourcebegin delete mustend deletebegin insert shallend insert be disclosed within 30 days after the date
12the threshold was reached or the payment was made, whichever
13occurs later. Within 30 days after receipt of the report, the Public
14Utilities Commission shall forward a copy of these reports to
the
15Fair Political Practices Commission.
16(c) “Contribution” includes the purchase of tickets for events
17such as dinners, luncheons, rallies, and similar fundraising events;
18the candidate’s own money or property used on behalf of his or
19her candidacybegin insert,end insert other than personal funds of the candidate used to
20pay either a filing fee for a declaration of candidacy or a candidate
21statement prepared pursuant to Section 13307 of the Elections
22Code; the granting of discounts or rebates not extended to the
23public generally or the granting of discounts or rebates by television
24and radio stations and newspapers not extended on an equal basis
25to all candidates for the same office; the payment of compensation
26by any person for the personal services or expenses of any other
27person if the services are rendered or expenses incurred on behalf
28of a candidate or
committee without payment of full and adequate
29consideration.
30(d) “Contribution” further includes any transfer of anything of
31value received by a committee from another committee, unless
32full and adequate consideration is received.
33(e) “Contribution” does not include amounts received pursuant
34to an enforceable promise to the extent those amounts have been
35previously reported as a contribution. However, the fact that those
36amounts have been received shall be indicated in the appropriate
37campaign statement.
38(f) begin delete“Contribution” end deletebegin insert(1)end insertbegin insert end insertbegin insertExcept as provided in paragraph (2) or
39(3), “contribution” end insertdoes not include a
payment made by an
40occupant of a home or office for costs related to any meeting or
P10 1fundraising event held in the occupant’s home or office if the costs
2for the meeting or fundraising event are five hundred dollars ($500)
3or less.
4(2) “Contribution” includes a payment made by a lobbyist or
5a cohabitant of a lobbyist for costs related to a fundraising event
6held at the home of the lobbyist, including the value of the use of
7the home as a fundraising event venue. A payment described in
8this paragraph shall be attributable to the lobbyist for purposes
9of Section 85702.
10(3) “Contribution” includes a payment made by a lobbying firm
11for costs related to a fundraising event held at the office of the
12lobbying firm, including the value of the use of the office as a
13fundraising event venue.
14(g) Notwithstanding the foregoing definition of “contribution,”
15the term does not include volunteer personal services or payments
16made by any individual for his or her own travel expenses if the
17payments are made voluntarily without any understanding or
18agreement that they shall be, directly or indirectly, repaid to him
19or her.
20(h) “Contribution” further includes the payment of public
21moneys by a state or local governmental agency for a
22communication to the public that satisfies both of the following:
23(1) The communication expressly advocates the election or
24defeat of a clearly identified candidate or the qualification, passage,
25or defeat of a clearly identified measure, or, taken as a whole and
26in context, unambiguously urges a particular result in an election.
27(2) The communication is made at the behest of the affected
28candidate or committee.
29(i) “Contribution” further includes a payment made by a person
30to a multipurpose organization as defined and described in Section
3184222.
No reimbursement is required by this act pursuant to
33Section 6 of Article XIII B of the California Constitution because
34the only costs that may be incurred by a local agency or school
35district will be incurred because this act creates a new crime or
36infraction, eliminates a crime or infraction, or changes the penalty
37for a crime or infraction, within the meaning of Section 17556 of
38the Government Code, or changes the definition of a crime within
39the meaning of Section 6 of Article XIII B of the California
40Constitution.
The Legislature finds and declares that this bill furthers
2the purposes of the Political Reform Act of 1974 within the
3meaning of subdivision (a) of Section 81012 of the Government
4Code.
O
97