BILL NUMBER: AB 1544 CHAPTERED
BILL TEXT
CHAPTER 756
FILED WITH SECRETARY OF STATE OCTOBER 10, 2015
APPROVED BY GOVERNOR OCTOBER 10, 2015
PASSED THE SENATE SEPTEMBER 11, 2015
PASSED THE ASSEMBLY SEPTEMBER 2, 2015
AMENDED IN ASSEMBLY AUGUST 20, 2015
AMENDED IN ASSEMBLY AUGUST 17, 2015
INTRODUCED BY Assembly Members Cooley and Jones
JULY 15, 2015
An act to amend Section 82015 of the Government Code, relating to
the Political Reform Act of 1974, and declaring the urgency thereof,
to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 1544, Cooley. Political Reform Act of 1974: behested payments.
The Political Reform Act of 1974 provides for the comprehensive
regulation of campaign financing and related matters, including
campaign contributions, as defined. Under existing law, a payment
made at the behest of a candidate for elective office is considered a
contribution unless the payment is made for purposes unrelated to
the candidate's candidacy. Under the act, a payment made by a
government agency or an exempt nonprofit organization is presumed to
be unrelated to a candidate's candidacy. Likewise, a payment made
principally for legislative, governmental, or charitable purposes is
presumed to be unrelated to a candidate's candidacy, and such
payments are required to be reported by a candidate who is an elected
officer if they total $5,000 or more in the aggregate from a single
source in a calendar year. For purposes of the act, an elected
officer retains his or her status as a candidate for that office
until the officer has terminated all of his or her committees and no
longer holds the office, as specified.
This bill would provide that the provision relating to payments
made by a government agency exclusively governs a payment by a
governmental agency that is made principally for legislative or
governmental purposes at the behest of a candidate who is an elected
officer, and consequently the payment would not be subject to the
reporting requirement that applies generally to payments made for
legislative, governmental, or charitable purposes.
This bill would incorporate changes to Section 82015 of the
Government Code proposed by both this bill and AB 10, which would
become operative only if both bills are enacted and become effective
on or before January 1, 2016, and this bill is chaptered last.
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.
This bill would declare that it is to take effect immediately as
an urgency statute.
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. A payment by a
state, local, or federal governmental agency that is made principally
for legislative or governmental purposes is governed exclusively by
this clause and, therefore, is not subject to the reporting
requirement described in clause (iii).
(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 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
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 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; 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) (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.
(i) "Contribution" further includes a payment made by a person to
a multipurpose organization as defined and described in Section
84222.
SEC. 1.5. 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 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. A payment by a
state, local, or federal governmental agency that is made principally
for legislative or governmental purposes is governed exclusively by
this clause and, therefore, is not subject to the reporting
requirement described in clause (iii).
(iii) (I) 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 with the
elected officer's agency. The report shall be a public record subject
to inspection and copying pursuant to 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 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 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.
(II) A Member of the Legislature or a person elected to a
statewide elective office, as defined in Section 82053, shall report
behested payments of the type described in subclause (I) for one year
after he or she leaves the Legislature or the statewide elective
office. The report shall be made in accordance with the requirements
of subclause (I). A Member of the Legislature or a person elected to
a statewide elective office shall only report a payment pursuant to
this subclause if the payment would financially benefit the former
officeholder or a member of his or her immediate family, the former
officeholder's employer or the employer of a member of his or her
immediate family, or an entity with whom the former officeholder or a
member of his or her immediate family is negotiating employment.
(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 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
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; 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) (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.
(i) "Contribution" further includes a payment made by a person to
a multipurpose organization as defined and described in Section
84222.
SEC. 2. Section 1.5 of this bill incorporates amendments to
Section 82015 of the Government Code proposed by both this bill and
Assembly Bill 10. It shall only become operative if (1) both bills
are enacted and become effective on or before January 1, 2016, but
this bill becomes operative first, (2) each bill amends Section 82015
of the Government Code, and (3) this bill is enacted after Assembly
Bill 10, in which case Section 82015 of the Government Code, as
amended by Section 1 of this bill, shall remain operative only until
the operative date of Assembly Bill 10, at which time Section 1.5 of
this bill shall become operative.
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.
SEC. 4. 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:
It is a core principle of representative government that an
elected official's duties include advocacy of government agencies in
favor of expenditures that benefit constituents or public purposes
generally. It is also well-established that a government agency may
not expend public funds for purposes unrelated to the business of
that agency. To that end, government expenditures are subject to a
myriad of laws designed to protect the public interest and promote
transparency, including laws relating to open meetings, the
appropriate use of public resources, conflicts of interests, and
disbursement practices. Therefore, it is necessary that this act take
effect immediately in order to provide clarity for elected
officials, in conformity with the Legislature's intent when it
enacted Chapter 450 of the Statutes of 1997 that reporting
requirements for behested payments not apply with respect to the
payments made by a government agency at the behest of an elected
official for a legislative or governmental purpose.