BILL NUMBER: SB 2076 CHAPTERED 09/29/00 CHAPTER 853 FILED WITH SECRETARY OF STATE SEPTEMBER 29, 2000 APPROVED BY GOVERNOR SEPTEMBER 28, 2000 PASSED THE SENATE AUGUST 31, 2000 PASSED THE ASSEMBLY AUGUST 30, 2000 AMENDED IN ASSEMBLY AUGUST 18, 2000 AMENDED IN SENATE JUNE 15, 2000 AMENDED IN SENATE MAY 22, 2000 AMENDED IN SENATE MAY 11, 2000 INTRODUCED BY Senator Polanco FEBRUARY 25, 2000 An act to amend Sections 84102, 84103, 84107, 84211, 84216, 84216.5, 84219, 84303, 85200, and 85201 of the Government Code, relating to the Political Reform Act of 1974. LEGISLATIVE COUNSEL'S DIGEST SB 2076, Polanco. Political Reform Act of 1974. Existing provisions of the Political Reform Act of 1974 (the act) require candidates, committees, and slate mailer organizations to file specified statements and reports with the Fair Political Practices Commission (the commission). The act requires a committee to file a statement of organization with the commission, including, among other things, the disposition of surplus funds that will be made in the event of dissolution. The act specifies that an amendment shall be filed within 10 days of any change in the information contained in the statement and that the filing officer must be notified by telegram or personal delivery if certain information is changed. This bill would instead require that, if the committee is controlled by a candidate for his or her election, the statement of organization shall include specified campaign contribution account information. The bill would also provide that the filing officer also may be notified by facsimile transmission or, if the filing officer is capable of receiving the notification in such a manner, online transmission. Existing provisions of the act require committees that have as their principal activity the support of or opposition to a ballot measure to identify themselves as such. This bill would instead impose that requirement on committees that are primarily formed to support or oppose a ballot measure. The act requires elected officers, candidates, and committees to file campaign statements each year if they have made contributions or independent expenditures, including payments to a slate mailer organization, during the 6-month period before the closing of the statements. Under the act, each campaign statement is required to contain specified information pertaining to contributions, including, among other things, the total amount of contributions received during the period covered by the campaign statement and the total amount of contributions received during the period covered by the campaign statement from persons who have given a cumulative amount of $100 or more. The act requires expenditures made by an agent or independent contractor on behalf of a candidate or committee to be reported as if it was made by the candidate or committee. In addition to those campaign statements, elected officers, candidates, and committees are required to file preelection statements, as specified. This bill would require the disclosure of detailed information regarding any personal loan of $100 or more. The bill would limit the reporting of expenditures by agents or independent contractors made on behalf of candidates or committees to expenditures of $500 or more. The bill would made additional changes to those reporting requirements. The act requires an individual who intends to be a candidate for elective office to file a statement of intent with the Secretary of State before soliciting or receiving any contribution or loan. This bill would provide that an individual who intends to be a candidate for elective state office shall file the statement of intent with the Secretary of State and require that an individual who intends to be a candidate for any other office file the statement of intent with the same filing officer and in the same location as he or she would file the original campaign statement. The Political Reform Act of 1974, an initiative measure, provides that the Legislature may amend the act to further the act's purposes with a 2/3 vote of each house and compliance with specified procedural requirements. This bill, which would declare that it furthers the purposes of the act, would therefore require a 2/3 vote. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 84102 of the Government Code is amended to read: 84102. The statement of organization required by Section 84101 shall include: (a) The name, street address, and telephone number, if any, of the committee. In the case of a sponsored committee, the name of the committee shall include the name of its sponsor. Whenever a committee has more than one sponsor, and the sponsors are members of an industry or other identifiable group, a term identifying that industry or group shall be included in the name of the committee. (b) In the case of a sponsored committee, the name, street address, and telephone number of each sponsor. (c) The full name, street address, and telephone number, if any, of the treasurer and other principal officers. (d) The full name and office sought by any candidate and the title and ballot number, if any, of any measure, which the committee supports or opposes as its primary activity. A committee which does not support or oppose one or more candidates or ballot measures as its primary activity shall provide a brief description of its political activities, including whether it supports or opposes candidates or measures and whether such candidates or measures have common characteristics such as a political party affiliation. (e) A statement whether the committee is independent or controlled, and if it is controlled, the name of each candidate, or state measure proponent by which it is controlled, or the name of any controlled committee with which it acts jointly. If a committee is controlled by a candidate for partisan office, the controlled committee shall indicate the political party, if any, with which the candidate is affiliated. (f) For a committee controlled by a candidate for his or her election, the name and address of the financial institution where the committee has established an account and the account number. (g) Such other information as shall be required by the rules or regulations of the commission consistent with the purposes and provisions of this chapter. SEC. 2. Section 84103 of the Government Code is amended to read: 84103. (a) Whenever there is a change in any of the information contained in a statement of organization, an amendment shall be filed within 10 days to reflect the change. The committee shall file the original of the amendment with the Secretary of State and shall also file a copy of the amendment with the local filing officer, if any, with whom the committee is required to file the originals of its campaign reports pursuant to Section 84215. (b) In addition to filing an amendment to a statement of organization as required by subdivision (a), a committee as defined in subdivision (a) of Section 82013 shall, by facsimile transmission, online transmission, telegram, or personal delivery within 24 hours, notify the filing officer with whom it is required to file the originals of its campaign reports pursuant to Section 84215 when the change requiring the amendment occurs before the date of the election in connection with which the committee is required to file a preelection statement, but after the closing date of the last preelection statement required to be filed for the election pursuant to Section 84200.7 or 84200.8, if any of the following information is changed: (1) The name of the committee. (2) The name of the treasurer or other principal officers. (3) The name of any candidate or committee by which the committee is controlled or with which it acts jointly. The notification shall include the changed information, the date of the change, the name of the person providing the notification, and the committee's name and identification number. A committee may file a notification online only if the appropriate filing officer is capable of receiving the notification in that manner. SEC. 3. Section 84107 of the Government Code is amended to read: 84107. Within 30 days of the designation of the numerical order of propositions appearing on the ballot, any committee which is primarily formed to support or oppose a ballot measure, shall, if supporting the measure, include the statement, "a committee for Proposition ____," or, if opposing the measure, include the statement, "a committee against Proposition ____," in any reference to the committee required by law. SEC. 4. Section 84211 of the Government Code is amended to read: 84211. Each campaign statement required by this article shall contain all of the following information: (a) The total amount of contributions received during the period covered by the campaign statement and the total cumulative amount of contributions received. (b) The total amount of expenditures made during the period covered by the campaign statement and the total cumulative amount of expenditures made. (c) The total amount of contributions received during the period covered by the campaign statement from persons who have given a cumulative amount of one hundred dollars ($100) or more. (d) The total amount of contributions received during the period covered by the campaign statement from persons who have given a cumulative amount of less than one hundred dollars ($100). (e) The balance of cash and cash equivalents on hand at the beginning and the end of the period covered by the campaign statement. (f) If the cumulative amount of contributions (including loans) received from a person is one hundred dollars ($100) or more and a contribution or loan has been received from that person during the period covered by the campaign statement, all of the following: (1) His or her full name. (2) His or her street address. (3) His or her occupation. (4) The name of his or her employer, or if self-employed, the name of the business. (5) The date and amount received for each contribution received during the period covered by the campaign statement and if the contribution is a loan, the interest rate for the loan. (6) The cumulative amount of contributions. (g) If the cumulative amount of loans received from or made to a person is one hundred dollars ($100) or more, and a loan has been received from or made to a person during the period covered by the campaign statement, or is outstanding during the period covered by the campaign statement, all of the following: (1) His or her full name. (2) His or her street address. (3) His or her occupation. (4) The name of his or her employer, or if self-employed, the name of the business. (5) The original date and amount of each loan. (6) The due date and interest rate of the loan. (7) The cumulative payment made or received to date at the end of the reporting period. (8) The balance outstanding at the end of the reporting period. (9) The cumulative amount of contributions. (h) For each person, other than the filer, who is directly, indirectly, or contingently liable for repayment of a loan received or outstanding during the period covered by the campaign statement, all of the following: (1) His or her full name. (2) His or her street address. (3) His or her occupation. (4) The name of his or her employer, or if self-employed, the name of the business. (5) The amount of his or her maximum liability outstanding. (i) The total amount of expenditures made during the period covered by the campaign statement to persons who have received one hundred dollars ($100) or more. (j) The total amount of expenditures made during the period covered by the campaign statement to persons who have received less than one hundred dollars ($100). (k) For each person to whom an expenditure of one hundred dollars ($100) or more has been made during the period covered by the campaign statement, all of the following: (1) His or her full name. (2) His or her street address. (3) The amount of each expenditure. (4) A brief description of the consideration for which each expenditure was made. (5) In the case of an expenditure which is a contribution to a candidate, elected officer, or committee or an independent expenditure to support or oppose a candidate or measure, in addition to the information required in paragraphs (1) to (4) above, the date of the contribution or independent expenditure, the cumulative amount of contributions made to a candidate, elected officer, or committee, or the cumulative amount of independent expenditures made relative to a candidate or measure; the full name of the candidate, and the office and district for which he or she seeks nomination or election, or the number or letter of the measure; and the jurisdiction in which the measure or candidate is voted upon. (6) The information required in paragraphs (1) to (4), inclusive, for each person, if different from the payee, who has provided consideration for an expenditure of five hundred dollars ($500) or more during the period covered by the campaign statement. For purposes of subdivisions (i), (j), and (k) only, the terms "expenditure" or "expenditures" mean any individual payment or accrued expense, unless it is clear from surrounding circumstances that a series of payments or accrued expenses are for a single service or product. (l) In the case of a controlled committee, an official committee of a political party, or an organization formed or existing primarily for political purposes, the amount and source of any miscellaneous receipt. (m) If a committee is listed pursuant to subdivision (f), (g), (h), (k), (l), or (q), the number assigned to the committee by the Secretary of State shall be listed, or if no number has been assigned, the full name and street address of the treasurer of the committee. (n) In a campaign statement filed by a candidate who is a candidate in both a state primary and general election, his or her controlled committee, or a committee primarily formed to support or oppose such a candidate, the total amount of contributions received and the total amount of expenditures made for the period January 1 through June 30 and the total amount of contributions received and expenditures made for the period July 1 through December 31. (o) The full name, residential or business address, and telephone number of the filer, or in the case of a campaign statement filed by a committee defined by subdivision (a) of Section 82013, the name, street address, and telephone number of the committee and of the committee treasurer. In the case of a committee defined by subdivision (b) or (c) of Section 82013, the name that the filer uses on campaign statements shall be the name by which the filer is identified for other legal purposes or any name by which the filer is commonly known to the public. (p) If the campaign statement is filed by a candidate, the name, street address, and treasurer of any committee of which he or she has knowledge which has received contributions or made expenditures on behalf of his or her candidacy and whether the committee is controlled by the candidate. (q) A contribution need not be reported nor shall it be deemed accepted if it is not cashed, negotiated, or deposited and is returned to the contributor before the closing date of the campaign statement on which the contribution would otherwise be reported. (r) If a committee primarily formed for the qualification or support of, or opposition to, an initiative or ballot measure is required to report an expenditure to a business entity pursuant to subdivision (k) and 50 percent or more of the business entity is owned by a candidate or person controlling the committee, by an officer or employee of the committee, or by a spouse of any of these individuals, the committee's campaign statement shall also contain, in addition to the information required by subdivision (k), that person's name, the relationship of that person to the committee, and a description of that person's ownership interest or position with the business entity. (s) If a committee primarily formed for the qualification or support of, or opposition to, an initiative or ballot measure is required to report an expenditure to a business entity pursuant to subdivision (k), and a candidate or person controlling the committee, an officer or employee of the committee, or a spouse of any of these individuals is an officer, partner, consultant, or employee of the business entity, the committee's campaign statement shall also contain, in addition to the information required by subdivision (k), that person's name, the relationship of that person to the committee, and a description of that person's ownership interest or position with the business entity. (t) If the campaign statement is filed by a committee, as defined in subdivision (b) or (c) of Section 82013, information sufficient to identify the nature and interests of the filer, including: (1) If the filer is an individual, the name and address of the filer's employer, if any, or his or her principal place of business if the filer is self-employed, and a description of the business activity in which the filer or his or her employer is engaged. (2) If the filer is a business entity, a description of the business activity in which it is engaged. (3) If the filer is an industry, trade, or professional association, a description of the industry, trade, or profession which it represents, including a specific description of any portion or faction of the industry, trade, or profession which the association exclusively or primarily represents. (4) If the filer is not an individual, business entity, or industry, trade, or professional association, a statement of the person's nature and purposes, including a description of any industry, trade, profession, or other group with a common economic interest which the person principally represents or from which its membership or financial support is principally derived. SEC. 5. Section 84216 of the Government Code is amended to read: 84216. (a) Notwithstanding Section 82015, a loan received by a candidate or committee is a contribution unless the loan is received from a commercial lending institution in the ordinary course of business, or it is clear from the surrounding circumstances that it is not made for political purposes. (b) A loan, whether or not there is a written contract for the loan, shall be reported as provided in Section 84211 when any of the following apply: (1) The loan is a contribution. (2) The loan is received by a committee. (3) The loan is received by a candidate and is used for political purposes. SEC. 6. Section 84216.5 of the Government Code is amended to read: 84216.5. A loan of campaign funds, whether or not there is a written contract for the loan, made by a candidate or committee shall be reported as provided in Section 84211. SEC. 7. Section 84219 of the Government Code is amended to read: 84219. Whenever a slate mailer organization is required to file campaign reports pursuant to Section 84218, the campaign report shall include the following information: (a) The total amount of receipts during the period covered by the campaign statement and the total cumulative amount of receipts. For purposes of this section only, "receipts" means payments received by a slate mailer organization for production and distribution of slate mailers. (b) The total amount of disbursements made during the period covered by the campaign statement and the total cumulative amount of disbursements. For purposes of this section only, "disbursements" means payment made by a slate mailer organization for the production or distribution of slate mailers. (c) For each candidate or committee that is a source of receipts totaling one hundred dollars ($100) or more during the period covered by the campaign statement: (1) The name of the candidate or committee, identification of the jurisdiction and the office sought or ballot measure number or letter, and if the source is a committee, the committee's identification number, street address, and the name of the candidate or measure on whose behalf or in opposition to which the payment is made. (2) The date and amount received for each receipt totaling one hundred dollars ($100) or more during the period covered by the campaign statement. (3) The cumulative amount of receipts on behalf of or in opposition to the candidate or measure. (d) For each person other than a candidate or committee who is a source of receipts totaling one hundred dollars ($100) or more during the period covered by the campaign statement: (1) Identification of the jurisdiction, office or ballot measure, and name of the candidate or measure on whose behalf or in opposition to which the payment was made. (2) Full name, street address, name of employer, or, if self-employed, name of business of the source of receipts. (3) The date and amount received for each receipt totaling one hundred dollars ($100) or more during the period covered by the campaign statement. (4) The cumulative amount of receipts on behalf of or in opposition to the candidate or measure. (e) For each candidate or ballot measure not reported pursuant to subdivision (c) or (d), but who was supported or opposed in a slate mailer sent by the slate mailer organization during the period covered by the report, identification of jurisdiction, office or ballot measure, and name of the candidate or measure who was supported or opposed. (f) The total amount of disbursements made during the period covered by the campaign statement to persons who have received one hundred dollars ($100) or more. (g) The total amount of disbursements made during the period covered by the campaign statement to persons who have received less than one hundred dollars ($100). (h) For each person to whom a disbursement of one hundred dollars ($100) or more has been made during the period covered by the campaign statement: (1) His or her full name. (2) His or her street address. (3) The amount of each disbursement. (4) A brief description of the consideration for which each disbursement was made. (5) The information required in paragraphs (1) to (4), inclusive, for each person, if different from the payee, who has provided consideration for a disbursement of five hundred dollars ($500) or more during the period covered by the campaign statement. (i) Cumulative disbursements, totaling one thousand dollars ($1,000) or more, made directly or indirectly to any person listed in the slate mailer organization's statement of organization. For purposes of this subdivision, a disbursement is made indirectly to a person if it is intended for the benefit of or use by that person or a member of the person's immediate family, or if it is made to a business entity in which the person or member of the person's immediate family is a partner, shareholder, owner, director, trustee, officer, employee, consultant, or holds any position of management or in which the person or member of the person's immediate family has an investment of one thousand dollars ($1,000) or more. This subdivision shall not apply to any disbursement made to a business entity whose securities are publicly traded. (j) The full name, street address, and telephone number of the slate mailer organization and of the treasurer. (k) Whenever a slate mailer organization also qualifies as a general purpose committee pursuant to Section 82027.5, the campaign report shall include, in addition to the information required by this section, the information required by Section 84211. SEC. 8. Section 84303 of the Government Code is amended to read: 84303. No expenditure of five hundred dollars ($500) or more shall be made, other than overhead or normal operating expenses, by an agent or independent contractor, including, but not limited to, an advertising agency, on behalf of or for the benefit of any candidate or committee unless it is reported by the candidate or committee as if the expenditure were made directly by the candidate or committee. The agent or independent contractor shall make known to the candidate or committee all information required to be reported by this section. SEC. 9. Section 85200 of the Government Code is amended to read: 85200. Prior to the solicitation or receipt of any contribution or loan, an individual who intends to be a candidate for an elective state office, pursuant to Section 82024, shall file with the Secretary of State an original statement, signed under penalty of perjury, of intention to be a candidate for a specific office. An individual who intends to be a candidate for any other elective office shall file the statement of intention with the same filing officer and in the same location as the individual would file an original campaign statement pursuant to subdivisions (c), (d), and (e) of Section 84215. For purposes of this section, "contribution" and "loan" do not include any payments from the candidate's personal funds for a candidate filing fee or a candidate statement of qualifications fee. SEC. 10. Section 85201 of the Government Code is amended to read: 85201. (a) Upon the filing of the statement of intention pursuant to Section 85200, the individual shall establish one campaign contribution account at an office of a financial institution located in the state. (b) As required by subdivision (f) of Section 84102, a candidate who raises contributions of one thousand dollars ($1,000) or more in a calendar year shall set forth the name and address of the financial institution where the candidate has established a campaign contribution account and the account number on the committee statement of organization filed pursuant to Sections 84101 and 84103. (c) All contributions or loans made to the candidate, to a person on behalf of the candidate, or to the candidate's controlled committee shall be deposited in the account. (d) Any personal funds which will be utilized to promote the election of the candidate shall be deposited in the account prior to expenditure. (e) All campaign expenditures shall be made from the account. (f) Subdivisions (d) and (e) do not apply to a candidate's payment for a filing fee and statement of qualifications from his or her personal funds. (g) This section does not apply to a candidate who will not receive contributions and who makes expenditures from personal funds of less than one thousand dollars ($1,000) in a calendar year to support his or her candidacy. For purposes of this section, a candidate's payment for a filing fee and statement of qualifications shall not be included in calculating the total expenditures made. (h) An individual who raises contributions from others for his or her campaign, but who raises or spends less than one thousand dollars ($1,000) in a calendar year, and does not qualify as a committee under Section 82013, shall establish a campaign contribution account pursuant to subdivision (a), but is not required to file a committee statement of organization pursuant to Section 84101 or other statement of bank account information. SEC. 11. The Legislature finds and declares that the provisions of this act further the purposes of the Political Reform Act of 1974 within the meaning of subdivision (a) of Section 81012.6 of the Government Code.