Amended in Senate March 28, 2016

Senate BillNo. 1107


Introduced by Senator Allen

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(Principal coauthor: Senator Hancock)

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February 17, 2016


An act to amendbegin delete Section 85206 ofend deletebegin insert Sections 85300 and 85320 of, and to add Sections 89519.5 and 91004.5 to,end insert the Government Code, relating to the Political Reform Act of 1974.

LEGISLATIVE COUNSEL’S DIGEST

SB 1107, as amended, Allen. Political Reform Act of 1974: public moneys: definition.

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Existing law prohibits a person who has been convicted of a felony involving bribery, embezzlement of public money, extortion or theft of public money, perjury, or conspiracy to commit any of those crimes, from being considered a candidate for, or elected to, a state or local elective office. Exiting law, the Political Reform Act of 1974, provides that campaign funds under the control of a former candidate or elected officer are considered surplus campaign funds at a prescribed time, and it prohibits the use of surplus campaign funds except for specified purposes.

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This bill would prohibit an officeholder who is convicted of one of those enumerated felonies from using funds held by that officeholder’s candidate controlled committee for purposes other than certain purposes permitted for the use of surplus campaign funds. The bill would also require the officeholder to forfeit any remaining funds held six months after the conviction became final, and it would direct those funds to be deposited in the general fund.

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The Political Reform Act of 1974 prohibits a public officer from expending, and a candidate from accepting, public moneys for the purpose of seeking elective office.begin delete The act defines “public moneys” by reference to its definition in the Penal Code.end delete

This bill wouldbegin delete expressly set forth that definition within the act.end deletebegin insert permit a public officer or candidate to expend or accept public moneys for the purpose of seeking elective office if the state or a local governmental entity established a dedicated fund for this purpose, as specified.end insert

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The act prohibits a foreign government or principal, as defined, from making a contribution or expenditure in connection with a state or local ballot measure, and it also sets forth civil and criminal penalties for violations of the act’s provisions.

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This bill would expand the scope of the prohibitions relating to foreign governments and principals by also prohibiting a foreign government or principal from making a contribution in support of, or opposition to, a state or local candidate. It would also permit a greater criminal penalty to be imposed for a violation of that prohibition, and it would establish the amount of a civil penalty for a violation of the prohibition.

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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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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 act may be amended by a statute that becomes effective upon approval of the voters.

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This bill would require the Secretary of State to submit the bill to the voters for approval at a statewide election, as specified.

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Vote: majority. Appropriation: no. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: begin deleteno end deletebegin insertyesend insert.

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

P2    1begin insert

begin insertSECTIONend insertbegin insert 1.end insert  

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begin insertSection 85300 of the end insertbegin insertGovernment Codeend insertbegin insert is
2amended to read:end insert

P3    1

85300.  

begin insert(a)end insertbegin insertend insertbegin deleteNo end deletebegin insertExcept as provided in subdivision (b), aend insertbegin insert end insertpublic
2officer shallbegin delete expendend deletebegin insert not expend,end insert andbegin delete noend deletebegin insert aend insert candidate shallbegin delete acceptend delete
3begin insert not accept,end insert any public moneys for the purpose of seeking elective
4office.

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5
(b) A public officer or candidate may expend or accept public
6moneys for the purpose of seeking elective office if the state or a
7local governmental entity establishes a dedicated fund for this
8purpose and both of the following are true:

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9
(1) Public moneys held in the fund are available to all qualified,
10voluntarily participating candidates for the same office without
11regard to incumbency or political party preference.

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12
(2) The state or local governmental entity has established
13criteria for determining a candidate’s qualification by statute,
14ordinance, resolution, or charter.

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15begin insert

begin insertSEC. end insertbegin insert2.end insert  

end insert

begin insertSection 85320 of the end insertbegin insertGovernment Codeend insertbegin insert is amended to
16read:end insert

17

85320.  

(a) begin deleteNo end deletebegin insertAend insertbegin insert end insertforeign government or foreign principal shall
18begin insert notend insert make, directly or through any other person, any contribution,
19expenditure, or independent expenditure in connection with the
20qualification or support of, or opposition to,begin delete anyend deletebegin insert aend insert state or local
21begin insert candidate orend insert ballot measure.

22(b) begin deleteNo end deletebegin insertAend insertbegin insert end insertpersonbegin delete and noend deletebegin insert or aend insert committee shallbegin insert notend insert solicit or accept
23a contribution from a foreign government or foreign principal in
24connection with the qualification or support of, or opposition to,
25begin delete anyend deletebegin insert aend insert state or localbegin insert candidate orend insert ballot measure.

26(c) For the purposes of this section, a “foreign principal”
27includes the following:

28(1) A foreign political party.

29(2) A person outside the United States, unless either of the
30following is established:

31(A) The person is an individual and a citizen of the United
32States.

33(B) The person is not an individual and is organized under or
34created by the laws of the United States or of any state or other
35place subject to the jurisdiction of the United States and has its
36principal place of business within the United States.

37(3) A partnership, association, corporation, organization, or
38other combination of persons organized under the laws of or having
39its principal place of business in a foreign country.

P4    1(4) A domestic subsidiary of a foreign corporation if the decision
2to contribute or expend funds is made by an officer, director, or
3management employee of the foreign corporation who is neither
4a citizen of the United States nor a lawfully admitted permanent
5resident of the United States.

6(d) This sectionbegin delete shallend deletebegin insert doesend insert not prohibit a contribution,
7expenditure, or independent expenditure made by a lawfully
8admitted permanent resident.

9(e) begin deleteAny end deletebegin insertA end insertperson who violates this sectionbegin delete shall beend deletebegin insert isend insert guilty of
10a misdemeanor and shall be finedbegin insert the greater of ten thousand
11dollars ($10,000) orend insert
an amount equal to the amount contributed
12or expended.

13begin insert

begin insertSEC. end insertbegin insert3.end insert  

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begin insertSection 89519.5 is added to the end insertbegin insertGovernment Codeend insertbegin insert, to
14read:end insert

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15

begin insert89519.5.end insert  

(a) An officeholder who is convicted of a felony
16enumerated in Section 20 of the Elections Code, and whose
17conviction has become final, shall use funds held by the
18officeholder’s candidate controlled committee only for the
19following purposes:

20
(1) The payment of outstanding campaign debts or elected
21officer’s expenses.

22
(2) The repayment of contributions.

23
(b) Six months after the conviction becomes final, the
24officeholder shall forfeit any remaining funds subject to subdivision
25(a), and these funds shall be deposited in the general fund.

26
(c) This section does not apply to funds held by a ballot measure
27committee or in a legal defense fund formed pursuant to Section
2885304.

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29begin insert

begin insertSEC. 4.end insert  

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begin insertSection 91004.5 is added to the end insertbegin insertGovernment Codeend insertbegin insert, to
30read:end insert

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31

begin insert91004.5.end insert  

(a) A person who intentionally violates Section 85320
32is liable in a civil action brought by the civil prosecutor, for each
33violation, for the greater of ten thousand dollars ($10,000) or an
34amount equal to the amount contributed or expended.

35
(b) The civil prosecutor may not bring an action pursuant to
36this section against a person being criminally prosecuted for a
37violation of Section 85320 pursuant to Section 91000.

38
(c) This section is applicable only to violations occurring after
39the effective date of this section.

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P5    1begin insert

begin insertSEC. 5.end insert  

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The provisions of this bill are severable. If any
2provision of this bill or its application is held invalid, that invalidity
3shall not affect other provisions or applications that can be given
4effect without the invalid provision or application.

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5begin insert

begin insertSEC. 6.end insert  

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No reimbursement is required by this act pursuant to
6Section 6 of Article XIII  B of the California Constitution because
7the duties imposed on a local agency or school district by this act
8were expressly included in a ballot measure approved by the voters
9in a statewide election, within the meaning of Section 17556 of
10the Government Code.

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11begin insert

begin insertSEC. 7.end insert  

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The Secretary of State shall, pursuant to subdivision
12(b) of Section 81012 of the Government Code, submit this act to
13the voters for approval at a statewide election in accordance with
14Section 9040 of the Elections Code.

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SECTION 1.  

Section 85206 of the Government Code is
16amended to read:

17

85206.  

“Public moneys” means all bonds and evidence of
18indebtedness, and all moneys belonging to the state, or any city,
19county, town, district, or public agency therein, and all moneys,
20bonds, and evidences of indebtedness received or held by state,
21county, district, city, town, or public agency officers in their official
22capacity.

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