BILL NUMBER: AB 1494 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 22, 2015
AMENDED IN ASSEMBLY APRIL 7, 2015
INTRODUCED BY Assembly Member Levine
(Coauthors: Senators Allen and McGuire)
FEBRUARY 27, 2015
An act to amend Section 85500 of, and to add Section 12179.2 to
the Government Code, relating to the Political Reform Act of 1974.
LEGISLATIVE COUNSEL'S DIGEST
AB 1494, as amended, Levine. Political Reform Act of 1974:
independent expenditure tax. report annual
fee.
Existing law designates the Secretary of State as the chief
elections officer of the state and requires him or her to see that
elections are efficiently conducted and that state election laws are
enforced. Existing law also authorizes the Secretary of State in
certain circumstances to assist the county elections officer in
discharging his or her duties.
The Political Reform Act of 1974 provides for the comprehensive
regulation of campaign financing, including requiring the filing of
reports of contributions and expenditures. Among its provisions, the
act requires a committee that makes an independent expenditure, as
defined, of $1,000 or more during an election cycle in connection
with a candidate for elective state office or a state ballot measure
to disclose that expenditure by filing a report online or
electronically with the Secretary of State.
This bill would require a committee subject to the independent
expenditure disclosure requirement to pay a tax at the rate
of 10% of the amount of each independent expenditure reported to the
Secretary of State within 5 days of filing the report.
pay to the Secretary of State, within 5 days of filing an
independent expenditure report, an annual reporting fee in an amount
based on the amount that the committe e declares that it
will spend in each 2-year election cycle, as defined. The bill
would require the Secretary of State to establish a fund
with the tax revenues and allocate those funds those
fees to be deposited into a Civic Engagement Fund created by the
bill. The bill would, upon appropriation by the Legislature, require
the Secretary of State to allocate the funds in the Civic Engagement
Fund for the costs of oversight of committees filing the independent
expenditure reports, to the Fair Political Practices Commission
and for the purpose of increasing
transparency in political campaigns, and to local elections
offices for the purpose of increasing transparency in
political campaigns, civic engagement, and offices,
through a competitive grant program, to increase voter
registration and turnout.
Existing law makes a willful violation of the Political Reform Act
of 1974 a misdemeanor and subject offenders to criminal penalties.
The This bill would impose a
state-mandated local program by creating additional crimes.
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 1. Section 12179.2 is added to the Government Code, to
read:
12179.2. (a) The Secretary of State shall establish a
fund for the purpose of increasing transparency in political
campaigns, civic engagement, and voter registration and turnout and
deposit revenues received pursuant to subdivision (c) of Section
85500 into the fund. There is hereby cre
ated in the State Treasury the Civic Engagement Fund. The purpose of
the Civic Engagement Fund is to provide oversight of committees
filing reports under Section 85500 and to increase transparency in
political campaigns, civic engagement, and voter registration and
turnout. The Secretary of State shall deposit revenues
received pursuant to subdivision (c) of Section 85500 into the Civic
Engagement Fund. Upon appropriation by the Legislature, the
Secretary of State shall allocate these funds for the costs of
oversight of committees filing reports under Section 85500, to
the Fair Political Practices Commission for the purpose of increasing
transparency in political campaigns , and to local
elections offices, through a competitive grant program, to increase
voter registration and turnout.
(b) Notwithstanding Section 10231.5, the Secretary of State shall
report to the Legislature and to the Department of Finance by March
31 of each year on the allocation and use of fund moneys specified in
subdivision (a). The Secretary of State shall also post this
information on his or her Internet Web site.
SEC. 2. Section 85500 of the Government Code is amended to read:
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 of one thousand dollars ($1,000) or more
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 84204 and
shall be filed within 24 hours of the time the independent
expenditure is made.
(b) An expenditure shall 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.
(c) (1) A committee subject to this section
shall pay a tax at the rate of 10 percent of the amount of
each independent expenditure reported pursuant to subdivision (a) to
the Secretary of State within 5 days of the filing of the report
pursuant to subdivision (a). an annual reporting
fee to the Secretary of State. The fee shall be charged
as follows:
(A) One hundred dollars ($100) for a committee filing a report and
declaring that it will spend less than one hundred thousand dollars
($100,000) per two-year election cycle.
(B) One thousand dollars ($1,000) for a committee filing a report
and declaring that it will spend less than two hundred fifty thousand
dollars ($250,000) per two-year election cycle.
(C) Two thousand dollars ($2,000) for a committee filing a report
and declaring that it will spend less than five hundred thousand
dollars ($500,000) per two-year election cycle.
(D) Ten thousand dollars ($10,000) for a committee filing a report
and declaring that it will spend less than one million dollars
($1,000,000) per two-year election cycle.
(E) Fifty thousand dollars ($50,000) for a committee filing a
report and declaring that it will spend less than ten million dollars
($10,000,000) per two-year election cycle.
(2) The annual reporting fee shall be paid within 5 days of the
filing of the report pursuant to subdivision (a).
(3) If a committee expends more than the declared amount, in the
report filed in which the committee discloses that fact, it shall
make a new declaration and pay the increased fee less the amount of
the fee or fees already paid.
(4) For purposes of this subdivision, "two-year election cycle"
means the period of time between the immediately preceding statewide
general election and the next statewide general election.
SEC. 3. 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. 4. 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.