BILL NUMBER: AB 2239 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 22, 2012
INTRODUCED BY Assembly Member Norby
FEBRUARY 24, 2012
An act to amend Section 170.1 of the Code of Civil Procedure, and
to amend Sections 56100.1, 82036.5, 83124, 84101, 84103, 84108,
84203.3, 84203.5, 84204, 84204.5, 84215, 84216, 84218, 84300, 84308,
84602, 84604, 84605, 84609, 85304, 85304.5, 85306, 85310, 85315,
85316, 85501, 89510, 89511.5, 89512.5, 89513, and 90002 of, to repeal
Sections 84200.5, 84200.6, 84200.7, 84200.8, 84200.9, 84202.3,
84202.5, 84202.7, 84203, 84205, 84206, 84209, 84211, 84216.5, 84220,
84302, 85300, 85301, 85302, 85303, 85305, 85307, 85309, 85314, 85320,
85321, 85701, 85702, and 85704 of, to repeal Article 2.5 (commencing
with Section 84250) of Chapter 4 of Title 9 of, and to repeal and
add Section 84200 of, the Government Code, relating to the Political
Reform Act of 1974.
LEGISLATIVE COUNSEL'S DIGEST
AB 2239, as amended, Norby. Political Reform Act of 1974.
The Political Reform Act of 1974 imposes various limitations on
contributions that may be made to, or accepted by, candidates for
elective office and campaign committees that support or oppose
candidates and ballot measures, including, among other things,
limiting the maximum dollar amount of contributions that may be
accepted by candidates for elective state office, prohibiting
candidates from accepting public funds for the purpose of seeking
public office, limiting contributions to an officer of an agency from
a party who has a financial interest in a permit or license
proceeding before that agency, and prohibiting elected state officers
or candidates for elective state office from accepting contributions
from lobbyists registered to lobby the governmental agency of which
the elected official is a member or for which the candidate seeks
election.
This bill would repeal limitations on contributions that may be
made to, or accepted by, candidates for elective office.
The act requires candidates and committees to file specified
campaign finance reports, including semiannual statements,
preelection statements, supplemental preelection statements, and late
contribution reports, that include prescribed campaign finance
information.
This bill would repeal the requirements to file these reports and
would, instead, require that a candidate or committee who makes or
receives a contribution of $100 or more to report that contribution
to specified filing officers within 24 hours of receiving the
contribution. The bill would require a candidate or committee making
the contribution to report his, her, or its full name and address,
the full name and address of the recipient, the office sought by the
candidate or the ballot measure, as appropriate, and the date and
amount of the contribution. The bill would require the recipient of
the contribution to report his, her, or its full name and address,
the date and amount of the contribution, whether the contribution is
in the form of a loan, and the full name of the contributor, and his
or her street address, occupation, and employer or the name of the
business, if self-employed. The bill would require a
candidate or committee who is required to report to the Secretary of
State to file the report online or by electronic transmission only.
The bill would require a candidate or committee that makes an
expenditure of $100 or more to report the expenditure to specified
filing officers within 24 hours. The bill would require the candidate
or committee making the expenditure to report his, her, or its full
name and street address, the amount of the expenditure, the full name
and street address for the person to whom the expenditure was made,
and a brief description of the consideration for which the
expenditure was made. The bill would require the disclosure of
additional information if the expenditure is a contribution to a
candidate, elected officer, or committee or an independent
expenditure to support or oppose a candidate or measure.
The bill would require a candidate or committee who is required
to report a contribution or expenditure to the Secretary of State to
file that report online or by electronic transmission only.
The bill would also make conforming changes.
By increasing the duties of local government officials, 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 act may be amended by a statute that becomes effective upon
approval of the voters.
This bill would require the Secretary of State to submit the
provisions of the bill that would amend the Political Reform Act of
1974 to the voters for approval at a statewide election, as
specified.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 170.1 of the Code of Civil Procedure is amended
to read:
170.1. (a) A judge shall be disqualified if any one or more of
the following are true:
(1) (A) The judge has personal knowledge of disputed evidentiary
facts concerning the proceeding.
(B) A judge shall be deemed to have personal knowledge within the
meaning of this paragraph if the judge, or the spouse of the judge,
or a person within the third degree of relationship to either of
them, or the spouse of such a person, is to the judge's knowledge
likely to be a material witness in the proceeding.
(2) (A) The judge served as a lawyer in the proceeding, or in any
other proceeding involving the same issues he or she served as a
lawyer for a party in the present proceeding, or gave advice to a
party in the present proceeding upon a matter involved in the action
or proceeding.
(B) A judge shall be deemed to have served as a lawyer in the
proceeding if within the past two years:
(i) A party to the proceeding, or an officer, director, or trustee
of a party, was a client of the judge when the judge was in the
private practice of law or a client of a lawyer with whom the judge
was associated in the private practice of law.
(ii) A lawyer in the proceeding was associated in the private
practice of law with the judge.
(C) A judge who served as a lawyer for, or officer of, a public
agency that is a party to the proceeding shall be deemed to have
served as a lawyer in the proceeding if he or she personally advised
or in any way represented the public agency concerning the factual or
legal issues in the proceeding.
(3) (A) The judge has a financial interest in the subject matter
in a proceeding or in a party to the proceeding.
(B) A judge shall be deemed to have a financial interest within
the meaning of this paragraph if:
(i) A spouse or minor child living in the household has a
financial interest.
(ii) The judge or the spouse of the judge is a fiduciary who has a
financial interest.
(C) A judge has a duty to make reasonable efforts to inform
himself or herself about his or her personal and fiduciary interests
and those of his or her spouse and the personal financial interests
of children living in the household.
(4) The judge, or the spouse of the judge, or a person within the
third degree of relationship to either of them, or the spouse of such
a person, is a party to the proceeding or an officer, director, or
trustee of a party.
(5) A lawyer or a spouse of a lawyer in the proceeding is the
spouse, former spouse, child, sibling, or parent of the judge or the
judge's spouse or if such a person is associated in the private
practice of law with a lawyer in the proceeding.
(6) (A) For any reason:
(i) The judge believes his or her recusal would further the
interests of justice.
(ii) The judge believes there is a substantial doubt as to his or
her capacity to be impartial.
(iii) A person aware of the facts might reasonably entertain a
doubt that the judge would be able to be impartial.
(B) Bias or prejudice toward a lawyer in the proceeding may be
grounds for disqualification.
(7) By reason of permanent or temporary physical impairment, the
judge is unable to properly perceive the evidence or is unable to
properly conduct the proceeding.
(8) (A) The judge has a current arrangement concerning prospective
employment or other compensated service as a dispute resolution
neutral or is participating in, or within the last two years has
participated in, discussions regarding prospective employment or
service as a dispute resolution neutral, or has been engaged in that
employment or service, and any of the following applies:
(i) The arrangement is, or the prior employment or discussion was,
with a party to the proceeding.
(ii) The matter before the judge includes issues relating to the
enforcement of either an agreement to submit a dispute to an
alternative dispute resolution process or an award or other final
decision by a dispute resolution neutral.
(iii) The judge directs the parties to participate in an
alternative dispute resolution process in which the dispute
resolution neutral will be an individual or entity with whom the
judge has the arrangement, has previously been employed or served, or
is discussing or has discussed the employment or service.
(iv) The judge will select a dispute resolution neutral or entity
to conduct an alternative dispute resolution process in the matter
before the judge, and among those available for selection is an
individual or entity with whom the judge has the arrangement, with
whom the judge has previously been employed or served, or with whom
the judge is discussing or has discussed the employment or service.
(B) For the purposes of this paragraph, all of the following
apply:
(i) "Participating in discussions" or "has participated in
discussion" means that the judge solicited or otherwise indicated an
interest in accepting or negotiating possible employment or service
as an alternative dispute resolution neutral, or responded to an
unsolicited statement regarding, or an offer of, that employment or
service by expressing an interest in that employment or service,
making an inquiry regarding the employment or service, or encouraging
the person making the statement or offer to provide additional
information about that possible employment or service. If a judge's
response to an unsolicited statement regarding, a question about, or
offer of, prospective employment or other compensated service as a
dispute resolution neutral is limited to responding negatively,
declining the offer, or declining to discuss that employment or
service, that response does not constitute participating in
discussions.
(ii) "Party" includes the parent, subsidiary, or other legal
affiliate of any entity that is a party and is involved in the
transaction, contract, or facts that gave rise to the issues subject
to the proceeding.
(iii) "Dispute resolution neutral" means an arbitrator, mediator,
temporary judge appointed under Section 21 of Article VI of the
California Constitution, referee appointed under Section 638 or 639,
special master, neutral evaluator, settlement officer, or settlement
facilitator.
(9) (A) The judge has received a contribution in excess of one
thousand five hundred dollars ($1,500) from a party or lawyer in the
proceeding, and either of the following applies:
(i) The contribution was received in support of the judge's last
election, if the last election was within the last six years.
(ii) The contribution was received in anticipation of an upcoming
election.
(B) Notwithstanding subparagraph (A), the judge shall be
disqualified based on a contribution of a lesser amount if
subparagraph (A) of paragraph (6) applies.
(C) The judge shall disclose any contribution from a party or
lawyer in a matter that is before the court that is required to be
reported under Section 84200 of the Government Code, even if the
amount would not require disqualification under this paragraph. The
manner of disclosure shall be the same as that provided in Canon 3E
of the Code of Judicial Ethics.
(D) Notwithstanding paragraph (1) of subdivision (b) of Section
170.3, the disqualification required under this paragraph may be
waived by the party that did not make the contribution unless there
are other circumstances that would prohibit a waiver pursuant to
paragraph (2) of subdivision (b) of Section 170.3.
(b) A judge before whom a proceeding was tried or heard shall be
disqualified from participating in any appellate review of that
proceeding.
(c) At the request of a party or on its own motion an appellate
court shall consider whether in the interests of justice it should
direct that further proceedings be heard before a trial judge other
than the judge whose judgment or order was reviewed by the appellate
court.
SEC. 2. Section 56100.1 of the Government Code is amended to read:
56100.1. (a) Contributions and expenditures for political
purposes related to a proposal or proceeding shall be disclosed and
reported pursuant to Article 2 (commencing with Section 84200) of
Chapter 4 of the Political Reform Act of 1974 (Title 9 (commencing
with Section 81000)).
(b) A commission may require, through the adoption of written
policies and procedures, additional disclosure of contributions in
support of or opposition to a proposal, which shall be made either to
the commission's executive officer, in which case it shall be posted
on the commission's Internet Web site, if applicable, or to the
board of supervisors of the county in which the commission is
located, which may designate a county officer to receive the
disclosure. Disclosure pursuant to a requirement under the authority
provided in this section shall be in addition to any disclosure
otherwise required by Section 56700.1, 57009, or local ordinance.
SEC. 3. Section 82036.5 of the Government Code is amended to read:
82036.5. "Late independent expenditure" means any independent
expenditure that totals in the aggregate one thousand dollars
($1,000) or more and is made for or against any specific candidate or
measure involved in an election within the 12 days before the date
of the election. For purposes of the Board of Administration of the
Public Employees' Retirement System and the Teachers' Retirement
Board, "the date of the election" is the deadline to return ballots.
SEC. 4. Section 83124 of the Government Code is amended to read:
83124. The commission shall adjust the voluntary expenditure
limitations provisions in Section 85400 in January of every
odd-numbered year to reflect any increase or decrease in the Consumer
Price Index. Those adjustments shall be rounded to the nearest one
thousand dollars ($1,000).
SEC. 5. Section 84101 of the Government Code is amended to read:
84101. (a) A committee that is a committee by virtue of
subdivision (a) of Section 82013 shall file a statement of
organization. The committee shall file the original of the statement
of organization with the Secretary of State and shall also file a
copy of the statement of organization 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. The original and copy
of the statement of organization shall be filed within 10 days after
the committee has qualified as a committee. The Secretary of State
shall assign a number to each committee that files a statement of
organization and shall notify the committee of the number. The
Secretary of State shall send a copy of statements filed pursuant to
this section to the county elections official of each county that he
or she deems appropriate. A county elections official who receives a
copy of a statement of organization from the Secretary of State
pursuant to this section shall send a copy of the statement to the
clerk of each city in the county that he or she deems appropriate.
(b) In addition to filing the statement of organization as
required by subdivision (a), if a committee qualifies as a committee
under subdivision (a) of Section 82013 within the 12 days before the
date of an election in connection with which the committee is
required to file campaign statements, the committee shall file, by
facsimile transmission, guaranteed overnight delivery, or personal
delivery within 24 hours of qualifying as a committee, the
information required to be reported in the statement of organization.
The information required by this subdivision shall be filed with the
filing officer with whom the committee is required to file the
originals of its campaign reports pursuant to Section 84215.
(c) If an independent expenditure committee qualifies as a
committee pursuant to subdivision (a) of Section 82013 during the
time period described in Section 82036.5 and makes independent
expenditures of one thousand dollars ($1,000) or more to support or
oppose a candidate or candidates for office, the committee shall
file, by facsimile transmission, online transmission, guaranteed
overnight delivery, or personal delivery within 24 hours of
qualifying as a committee, the information required to be reported in
the statement of organization. The information required by this
section shall be filed with the filing officer with whom the
committee is required to file the original of its campaign reports
pursuant to Section 84215, and shall be filed at all locations
required for the candidate or candidates supported or opposed by the
independent expenditures. The filings required by this section are in
addition to filings that may be required by Section 84204.
(d) For purposes of this section, in calculating whether one
thousand dollars ($1,000) in contributions has been received,
payments for a filing fee or for a statement of qualifications to
appear in a sample ballot shall not be included if these payments
have been made from the candidate's personal funds.
SEC. 6. 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, guaranteed overnight delivery, 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 within
the 12 days before the date of the election in connection with which
the committee is required to file a campaign statement 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. 7. Section 84108 of the Government Code is amended to read:
84108. (a) Every slate mailer organization shall comply with the
requirements of Sections 84100, 84101, 84103, and 84104.
(b) The statement of organization of a slate mailer organization
shall include:
(1) The name, street address, and telephone number of the
organization. In the case of an individual or business entity that
qualifies as a slate mailer organization, the name of the slate
mailer organization shall include the name by which the individual or
entity is identified for legal purposes. Whenever identification of
a slate mailer organization is required by this title, the
identification shall include the full name of the slate mailer
organization as contained in its statement of organization.
(2) The full name, street address, and telephone number of the
treasurer and other principal officers.
(3) The full name, street address, and telephone number of each
person with final decisionmaking authority as to which candidates or
measures will be supported or opposed in the organization's slate
mailers.
(c) The statement of organization shall be filed with the
Secretary of State within 10 days after the slate mailer organization
receives or is promised five hundred dollars ($500) or more for
producing one or more slate mailers. However, if an entity qualifies
as a slate mailer organization within the 12 days before the date of
an election in which it is required to file campaign statements, the
slate mailer organization shall file with the Secretary of State, by
facsimile transmission, guaranteed overnight delivery, or personal
delivery within 24 hours of qualifying as a slate mailer
organization, the information required to be reported in the
statement of organization.
SEC. 8. Section 84200 of the Government Code is repealed.
SEC. 9. Section 84200 is added to the Government Code, to read:
84200. (a) (1) Each candidate or committee
that makes or receives a contribution of one hundred dollars ($100)
or more shall report the contribution to each office with which the
candidate or committee is required to file its statements pursuant to
Section 84215 or 84218. The candidate or committee that makes the
contribution shall report his or her full name and street address and
the full name and street address of the person to whom the
contribution has been made, the office sought if the recipient is a
candidate, or the ballot measure number or letter if the recipient is
a committee primarily formed to support or oppose a ballot measure,
and the date and amount of the contribution. The recipient of the
contribution shall report his or her full name and street address,
the date and amount of the contribution, and whether the contribution
was made in the form of a loan. The recipient shall also report the
full name of the contributor, his or her street address, occupation,
and the name of his or her employer, or if self-employed, the name of
the business.
(2) 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 within 24 hours of its receipt.
(b) Each candidate or committee that makes an expenditure of one
hundred dollars ($100) or more shall report the expenditure to each
office with which the candidate or committee is required to file its
statements pursuant to Section 84215 or 84218. The candidate or
committee that makes the expenditure shall report his or her full
name and street address, the amount of the expenditure, the full name
and street address for the person to whom the expenditure was made,
and a brief description of the consideration for which the
expenditure was made. In the case of an expenditure that is a
contribution to a candidate, elected officer, or committee or an
independent expenditure to support or oppose a candidate or measure,
the report shall also include the date of the contribution or
independent expenditure, the cumulative amount of contributions made
to the 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.
(b)
(c ) A contribution or expenditure
shall be reported by facsimile transmission, guaranteed
overnight delivery, or personal delivery within 24 hours of the time
it is made in the case of the candidate or committee that makes the
contribution and within 24 hours of the time it is received in the
case of the recipient. If a contribution or expenditure is
required to be reported to the Secretary of State, the report to the
Secretary of State shall be by online or electronic transmission
only.
(c) 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 within 24 hours of its receipt.
SEC. 10. Section 84200.5 of the Government Code is repealed.
SEC. 11. Section 84200.6 of the Government Code is repealed.
SEC. 12. Section 84200.7 of the Government Code is repealed.
SEC. 13. Section 84200.8 of the Government Code is repealed.
SEC. 14. Section 84200.9 of the Government Code is repealed.
SEC. 15. Section 84202.3 of the Government Code is repealed.
SEC. 16. Section 84202.5 of the Government Code is repealed.
SEC. 17. Section 84202.7 of the Government Code is repealed.
SEC. 18. Section 84203 of the Government Code is repealed.
SEC. 19. Section 84203.3 of the Government Code is amended to
read:
84203.3. Any candidate or committee that makes a contribution
that is an in-kind contribution shall notify the recipient in writing
of the value of the in-kind contribution. The notice shall be
received by the recipient within 24 hours of the time the
contribution is made.
SEC. 20. Section 84203.5 of the Government Code is amended to
read:
84203.5. (a) In addition to any campaign statements required by
this article, if a candidate or committee has made independent
expenditures totaling one thousand dollars ($1,000) or more in a
calendar year to support or oppose a candidate, a measure or
qualification of a measure, it shall file independent expenditure
reports at the times prescribed by the Commission.
(b) An independent expenditure report shall contain the following
information:
(1) The name, street address, and telephone number of the
candidate or committee making the expenditure and of the committee's
treasurer, and the number assigned to the committee by the Secretary
of State.
(2) If the report is related to a candidate, the full name of the
candidate and the office and district for which the candidate seeks
nomination or election. If the report is related to a measure or
qualification of a measure, the number or letter of the measure, or
if none has yet been assigned, a brief description of the subject
matter of the measure, and the jurisdiction in which the measure is
to be voted on or would be voted on if it qualified.
(3) The total amount of expenditures related to the candidate or
measure during the period covered by the report made to persons who
have received less than one hundred dollars ($100).
(4) The total amount of expenditures related to the candidate or
measure during the period covered by the report made to persons who
have received one hundred dollars ($100) or more.
(5) For each person to whom an expenditure of one hundred dollars
($100) or more related to the candidate or measure has been made
during the period covered by the report and for each person who has
provided consideration for an expenditure of one hundred dollars
($100) or more during the period covered by the report:
(A) His or her full name.
(B) His or her street address.
(C) If the person is a committee, the name of the committee, the
number assigned to the committee by the Secretary of State, or if no
number has been assigned, the full name and street address of the
treasurer of the committee.
(D) The date of the expenditure.
(E) The amount of the expenditure.
(F) A brief description of the consideration for which each
expenditure was made and the value of the consideration if less than
the total amount of the expenditure.
(G) The cumulative amount of expenditures to the person.
(6) A list of all the filing officers with whom the committee
filed its most recent campaign statement.
(c) Filing officers shall maintain paper reports filed pursuant to
this section under the name of the candidate or measure supported or
opposed by the independent expenditure.
SEC. 21. Section 84204 of the Government Code is amended to read:
84204. (a) A committee that makes a late independent expenditure,
as defined in Section 82036.5, shall report the late independent
expenditure by facsimile transmission, guaranteed overnight delivery,
or personal delivery within 24 hours of the time it is made. If a
late independent expenditure is required to be reported to the
Secretary of State, the report to the Secretary of State shall be by
online or electronic transmission only. A late independent
expenditure shall be reported on subsequent campaign statements
without regard to reports filed pursuant to this section.
(b) A committee that makes a late independent expenditure shall
report its full name and street address, as well as the name, office,
and district of the candidate if the report is related to a
candidate, or if the report is related to a measure, the number or
letter of the measure, the jurisdiction in which the measure is to be
voted upon, and the amount and the date, as well as a description of
goods or services for which the late independent expenditure was
made.
(c) A committee that makes a late independent expenditure shall
file a late independent expenditure report in the places where it
would be required to file campaign statements under this article as
if it were formed or existing primarily to support or oppose the
candidate or measure for or against which it is making the late
independent expenditure.
(d) A report filed pursuant to this section shall be in addition
to any other campaign statement required to be filed by this article.
(e) Expenditures that have been disclosed by candidates and
committees pursuant to Section 85500 are not required to be disclosed
pursuant to this section.
SEC. 22. Section 84204.5 of the Government Code is amended to
read:
84204.5. (a) In addition to any other report required by this
title, a committee pursuant to subdivision (a) of Section 82013 that
is required to file reports pursuant to Section 84605 shall file
online or electronically with the Secretary of State each time it
makes independent expenditures totaling five thousand dollars
($5,000) or more to support or oppose the qualification or passage of
a single state ballot measure. The report shall be filed within 10
business days of making the contributions or independent expenditures
and shall contain all of the following:
(1) The full name, street address, and identification number of
the committee.
(2) The number or letter of the measure if the measure has
qualified for the ballot and has been assigned a number or letter;
the title of the measure if the measure has not been assigned a
number or letter but has been issued a title by the Attorney General;
or the subject of the measure if the measure has not been assigned a
number or letter and has not been issued a title by the Attorney
General.
(3) The date, amount, and a description of the goods or services
for which the expenditure was made.
(b) Reports required by this section are not required to
be filed by a committee primarily formed to support or oppose the
qualification or passage of a state ballot measure for expenditures
made on behalf of the ballot measure or measures for which it is
formed.
(c) Independent expenditures that have been disclosed by a
committee pursuant to Section 84204 or 85500 are not required to be
disclosed pursuant to this section.
SEC. 23. Section 84205 of the Government Code is repealed.
SEC. 24. Section 84206 of the Government Code is repealed.
SEC. 25. Section 84209 of the Government Code is repealed.
SEC. 26. Section 84211 of the Government Code is repealed.
SEC. 27. Section 84215 of the Government Code is amended to read:
84215. All candidates and elected officers and their controlled
committees, except as provided in subdivisions (d) and (e), shall
file one copy of the campaign statements required by Section 84200
with the elections official of the county in which the candidate or
elected official is domiciled, as defined in subdivision (b) of
Section 349 of the Elections Code. In addition, campaign statements
shall be filed at the following places:
(a) Statewide elected officers, including members of the State
Board of Equalization; Members of the Legislature; Supreme Court
justices, court of appeal justices, and superior court judges;
candidates for those offices and their controlled committees;
committees formed or existing primarily to support or oppose these
candidates, elected officers, justices and judges, or statewide
measures, or the qualification of state ballot measures; and all
state general purpose committees and filers not specified in
subdivisions (b) to (e), inclusive, shall file a campaign statement
by online or electronic means, as specified in Section 84605, and
shall file the original and one copy of the campaign statement in
paper format with the Secretary of State.
(b) Elected officers in jurisdictions other than legislative
districts, State Board of Equalization districts, or appellate court
districts that contain parts of two or more counties, candidates for
these offices, their controlled committees, and committees formed or
existing primarily to support or oppose candidates or local measures
to be voted upon in one of these jurisdictions shall file the
original and one copy with the elections official of the county with
the largest number of registered voters in the jurisdiction.
(c) County elected officers, candidates for these offices, their
controlled committees, committees formed or existing primarily to
support or oppose candidates or local measures to be voted upon in
any number of jurisdictions within one county, other than those
specified in subdivision (d), and county general purpose committees
shall file the original and one copy with the elections official of
the county.
(d) City elected officers, candidates for city office, their
controlled committees, committees formed or existing primarily to
support or oppose candidates or local measures to be voted upon in
one city, and city general purpose committees shall file the original
and one copy with the clerk of the city and are not required to file
with the local elections official of the county in which they are
domiciled.
(e) Elected members of the Board of Administration of the Public
Employees' Retirement System, elected members of the Teachers'
Retirement Board, candidates for these offices, their controlled
committees, and committees formed or existing primarily to support or
oppose these candidates or elected members shall file the original
and one copy with the Secretary of State, and a copy shall be filed
at the relevant board's office in Sacramento. These elected officers,
candidates, and committees need not file with the elections official
of the county in which they are domiciled.
(f) Notwithstanding any other provision of this section, a
committee, candidate, or elected officer is not required to file more
than the original and one copy, or one copy, of a campaign statement
with any one county elections official or city clerk or with the
Secretary of State.
(g) If a committee is required to file campaign statements
required by Section 84200 in places designated in subdivisions (a) to
(d), inclusive, it shall continue to file these statements in those
places, in addition to any other places required by this title, until
the end of the calendar year.
SEC. 28. 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 84200 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. 29. Section 84216.5 of the Government Code is repealed.
SEC. 30. Section 84218 of the Government Code is amended to read:
84218. (a) A slate mailer organization shall file semiannual
campaign statements no later than July 31 for the period ending June
30, and no later than January 31 for the period ending December 31.
(b) A slate mailer organization shall file two copies of its
campaign reports with the clerk of the county in which it is
domiciled. A slate mailer organization is domiciled at the address
listed on its statement of organization unless it is domiciled
outside California, in which case its domicile shall be deemed to be
Los Angeles County for purposes of this section.
In addition, slate mailer organizations shall file campaign
reports as follows:
(1) A slate mailer organization which produces one or more slate
mailers supporting or opposing candidates or measures voted on in a
state election, or in more than one county, shall file campaign
reports in the same manner as state general purpose committees
pursuant to subdivision (a) of Section 84215.
(2) A slate mailer organization which produces one or more slate
mailers supporting or opposing candidates or measures voted on in
only one county, or in more than one jurisdiction within one county,
shall file campaign reports in the same manner as county general
purpose committees pursuant to subdivision (c) of Section 84215.
(3) A slate mailer organization which produces one or more slate
mailers supporting or opposing candidates or measures voted on in
only one city shall file campaign reports in the same manner as city
general purpose committees pursuant to subdivision (d) of Section
84215.
(4) Notwithstanding the above, no slate mailer organization shall
be required to file more than the original and one copy, or two
copies, of a campaign report with any one county or city clerk or
with the Secretary of State.
SEC. 31. Section 84220 of the Government Code is repealed.
SEC. 32. Article 2.5 (commencing with Section 84250) of Chapter 4
of Title 9 of the Government Code is repealed.
SEC. 33. Section 84300 of the Government Code is amended to read:
84300. (a) No expenditure of one hundred dollars ($100) or more
shall be made in cash.
(b) The value of all in-kind contributions of one hundred dollars
($100) or more shall be reported in writing to the recipient upon the
request in writing of the recipient.
SEC. 34. Section 84302 of the Government Code is repealed.
SEC. 35. Section 84308 of the Government Code is amended to read:
84308. (a) The definitions set forth in this subdivision shall
govern the interpretation of this section.
(1) "Party" means any person who files an application for, or is
the subject of, a proceeding involving a license, permit, or other
entitlement for use.
(2) "Participant" means any person who is not a party but who
actively supports or opposes a particular decision in a proceeding
involving a license, permit, or other entitlement for use and who has
a financial interest in the decision, as described in Article 1
(commencing with Section 87100) of Chapter 7. A person actively
supports or opposes a particular decision in a proceeding if he or
she lobbies in person the officers or employees of the agency,
testifies in person before the agency, or otherwise acts to influence
officers of the agency.
(3) "Agency" means an agency as defined in Section 82003 ,
except that it does not include the courts or any agency in the
judicial branch of government, local governmental agencies whose
members are directly elected by the voters, the Legislature, the
State Board of Equalization, or constitutional officers. However,
this section applies to any person who is a member of an exempted
agency but is acting as a voting member of another agency.
(4) "Officer" means any elected or appointed officer of an agency,
any alternate to an elected or appointed officer of an agency, and
any candidate for elective office in an agency.
(5) "License, permit, or other entitlement for use" means all
business, professional, trade, and land use licenses and permits and
all other entitlements for use, including all entitlements for land
use, all contracts (other than competitively bid, labor, or personal
employment contracts), and all franchises.
(6) "Contribution" includes contributions to candidates and
committees in federal, state, or local elections.
(b) Prior to rendering any decision in a proceeding involving a
license, permit , or other entitlement for use pending
before an agency, each officer of the agency who received a
contribution within the preceding 12 months in an amount of more than
two hundred fifty dollars ($250) from a party or from any
participant shall disclose that fact on the record of the proceeding.
No officer of an agency shall make, participate in making, or in any
way attempt to use his or her official position to influence the
decision in a proceeding involving a license, permit, or other
entitlement for use pending before the agency if the officer has
willfully or knowingly received a contribution in an amount of more
than two hundred fifty dollars ($250) within the preceding 12 months
from a party or his or her agent, or from any participant, or his or
her agent if the officer knows or has reason to know that the
participant has a financial interest in the decision, as that term is
described with respect to public officials in Article 1 (commencing
with Section 87100) of Chapter 7.
If an officer receives a contribution which would
that otherwise require disqualification under
this section, and returns the contribution within 30 days
from the time he or she knows, or should have known, about the
contribution and the proceeding involving a license, permit, or other
entitlement for use, he or she shall be permitted to participate in
the proceeding.
(c) A party to a proceeding before an agency involving a license,
permit, or other entitlement for use shall disclose on the record of
the proceeding any contribution in an amount of more than two hundred
fifty dollars ($250) made within the preceding 12 months by the
party, or his or her agent, to any officer of the agency. No party,
or his or her agent, to a proceeding involving a license, permit, or
other entitlement for use pending before any agency and no
participant, or his or her agent, in the proceeding shall make a
contribution of more than two hundred fifty dollars ($250) to any
officer of that agency during the proceeding and for three months
following the date a final decision is rendered by the agency in the
proceeding. When a closed corporation is a party to, or a participant
in, a proceeding involving a license, permit, or other entitlement
for use pending before an agency, the majority shareholder is subject
to the disclosure and prohibition requirements specified in
subdivision (b) and this subdivision.
(d) Nothing in this section shall be construed to imply that any
contribution subject to being reported under this title shall not be
so reported.
SEC. 36. Section 84602 of the Government Code is amended to read:
84602. To implement the Legislature's intent, the Secretary of
State, in consultation with the Commission, notwithstanding any other
provision of the Government Code, shall do all of the following:
(a) Develop online and electronic filing processes for use by
persons and entities specified in Sections 84604 and 84605 that are
required to file statements and reports with the Secretary of State's
office pursuant to Chapter 4 (commencing with Section 84100) and
Chapter 6 (commencing with Section 86100). Those processes shall each
enable a user to comply with all the disclosure requirements of this
title and shall include, at a minimum, the following:
(1) A means or method whereby filers subject to this chapter may
submit required filings free of charge. Any means or method developed
pursuant to this provision shall not provide any additional or
enhanced functions or services that exceed the minimum requirements
necessary to fulfill the disclosure provisions of this title. At
least one means or method shall be made available no later than
December 31, 2002.
(2) The definition of a nonproprietary standardized record format
or formats using industry standards for the transmission of the data
that is required of those persons and entities specified in
subdivision (a) of Section 84604 and Section 84605 and that conforms
with the disclosure requirements of this title. The Secretary of
State shall hold public hearings prior to development of the record
format or formats as a means to ensure that affected entities have an
opportunity to provide input into the development process. The
format or formats shall be made public no later than July 1, 1999, to
ensure sufficient time to comply with the requirements of this
chapter.
(b) Accept test files from software vendors and others wishing to
file reports electronically, for the purpose of determining whether
the file format is in compliance with the standardized record format
developed pursuant to subdivision (a) and is compatible with the
Secretary of State's system for receiving the data. A list of the
software and service providers who have submitted acceptable test
files shall be published by the Secretary of State and made available
to the public. Acceptably formatted files shall be submitted by a
filer in order to meet the requirements of this chapter.
(c) Develop a system that provides for the online or electronic
transfer of the data specified in this section utilizing
telecommunications technology that assures the integrity of the data
transmitted and that creates safeguards against efforts to tamper
with or subvert the data.
(d) Make all the data filed available on the Internet in an easily
understood format that provides the greatest public access. The data
shall be made available free of charge and as soon as possible after
receipt. All contribution reports and late independent expenditure
reports shall be made available on the Internet within 24 hours of
receipt. The data made available on the Internet shall not contain
the street name and building number of the persons or entity
representatives listed on the electronically filed forms or any bank
account number required to be disclosed pursuant to this title.
(e) Develop a procedure for filers to comply with the requirement
that they sign under penalty of perjury pursuant to Section 81004.
(f) Maintain all filed data online for 10 years after the date it
is filed, and then archive the information in a secure format.
(g) Provide assistance to those seeking public access to the
information.
(h) Implement sufficient technology to seek to prevent
unauthorized alteration or manipulation of the data.
(i) Provide the Commission with necessary information to enable it
to assist agencies, public officials, and others, with the
compliance with and administration of this title.
(j) Report to the Legislature on the implementation and
development of the online and electronic filing and disclosure
requirements of this chapter. The report shall include an examination
of system security, private security issues, software availability,
compliance costs to filers, use of the filing system and software
provided by the Secretary of State, and other issues relating to this
chapter, and shall recommend appropriate changes if necessary. In
preparing the report, the Commission may present to the Secretary of
State and the Legislature its comments regarding this chapter as it
relates to the duties of the Commission and suggest appropriate
changes if necessary. There shall be one report due before the system
is operational as set forth in Section 84603, one report due no
later than June 1, 2002, and one report due no later than January 31,
2003.
(k) Review the current filing and disclosure requirements of this
chapter and report to the Legislature, no later than June 1, 2005,
recommendations on revising these requirements so as to promote
greater reliance on electronic and online submissions.
SEC. 37. Section 84604 of the Government Code is amended to read:
84604. (a) The Secretary of State shall implement an online or
electronic disclosure program in connection with the 2000 state
primary election and the lobbying activities specified in paragraph
(4). Entities specified in paragraphs (1), (2), and (3) shall
commence online or electronic disclosure with the first preelection
statement filed in connection with the 2000 statewide direct primary
election for the period ending January 22, 2000, and shall continue
to disclose online or electronically all required reports and
statements up to and including the semiannual statement for the
period ending June 30, 2000. Entities specified in paragraph (4)
shall commence online or electronic disclosure with the quarterly
report for the period ending March 31, 2000, and shall continue to
disclose online or electronically all required reports and statements
up to and including the quarterly report for the period ending June
30, 2000. The entities subject to this section are the following:
(1) Any candidate, including appellate court and Supreme Court
candidates and officeholders, committee, or other persons who are
required, pursuant to Chapter 4 (commencing with Section 84100), to
file statements, reports, or other documents in connection with a
state elective office or state measure appearing on the 2000
statewide direct primary ballot, provided that the total cumulative
reportable amount of contributions received, expenditures made, loans
made, or loans received is one hundred thousand dollars ($100,000)
or more. For the purpose of cumulating totals, the period covered
shall commence January 1, 1999.
(2) Any general purpose committees, as defined in Section 82027.5,
including the general purpose committees of political parties, and
small contributor committees, as defined in Section 85203, that
cumulatively receive contributions or make expenditures totaling one
hundred thousand dollars ($100,000) or more to support or oppose
candidates for any elective state office or state measure appearing
on the 2000 statewide direct primary ballot. For the purpose of
cumulating totals, the period covered shall commence January 1, 1999.
(3) Any slate mailer organization with cumulative reportable
payments received or made for the purposes of producing slate mailers
of one hundred thousand dollars ($100,000) or more in connection
with the 2000 statewide direct primary election. For the purpose of
cumulating totals, the period covered shall commence January 1, 1999.
(4) Any lobbyist, lobbying firm, lobbyist employer, or other
persons required, pursuant to Chapter 6 (commencing with Section
86100), to file statements, reports, or other documents, provided
that the total amount of any category of reportable payments,
expenses, contributions, gifts, or other items is one hundred
thousand dollars ($100,000) or more in a calendar quarter.
(b) Filers specified in subdivision (a) shall also continue to
file required disclosure forms in paper format. The paper copy shall
continue to be the official version for audit and other legal
purposes. Committees and other persons that are not required to file
online or electronically by this section may do so voluntarily.
(c) The Secretary of State shall also disclose on the Internet any
contribution report or late independent expenditure report not
covered by subdivision (a).
(d) It shall be presumed that online or electronic filers file
under penalty of perjury.
SEC. 38. Section 84605 of the Government Code is amended to read:
84605. (a) The following persons shall file online or
electronically with the Secretary of State:
(1) Any candidate, including superior court, appellate court, and
Supreme Court candidates and officeholders, committee, or other
persons who are required, pursuant to Chapter 4 (commencing with
Section 84100), to file statements, reports, or other documents in
connection with a state elective office or state measure, provided
that the total cumulative reportable amount of contributions
received, expenditures made, loans made, or loans received is
twenty-five thousand dollars ($25,000) or more. In determining the
cumulative reportable amount, all controlled committees, as defined
by Section 82016, shall be included. For a committee subject to this
title prior to January 1, 2000, the beginning date for calculating
cumulative totals is January 1, 2000. For a committee that is first
subject to this title on or after January 1, 2000, the beginning date
for calculating cumulative totals is the date the committee is first
subject to this title. A committee, as defined in subdivision (c) of
Section 82013, shall file online or electronically if it makes
contributions of twenty-five thousand dollars ($25,000) or more in a
calendar year.
(2) Any general purpose committees, as defined in Section 82027.5,
including the general purpose committees of political parties, and
small contributor committees, as defined in Section 85203, that
cumulatively receive contributions or make expenditures totaling
twenty-five thousand dollars ($25,000) or more to support or oppose
candidates for any elective state office or state measure. For a
committee subject to this title prior to January 1, 2000, the
beginning date for calculating cumulative totals is January 1, 2000.
For a committee that first is subject to this title on or after
January 1, 2000, the beginning date for calculating cumulative totals
is the date the committee is first subject to this title.
(3) Any slate mailer organization with cumulative reportable
payments received or made for the purposes of producing slate mailers
of twenty-five thousand dollars ($25,000) or more. For a slate
mailer organization subject to this title prior to January 1, 2000,
the beginning date for calculating cumulative totals is January 1,
2000. For a slate mailer organization that first is subject to this
title on or after January 1, 2000, the beginning date for calculating
cumulative totals is the date the organization is first subject to
this title.
(4) Any lobbyist, lobbying firm, lobbyist employer, or other
persons required, pursuant to Chapter 6 (commencing with Section
86100), to file statements, reports, or other documents, provided
that the total amount of any category of reportable payments,
expenses, contributions, gifts, or other items is two thousand five
hundred dollars ($2,500) or more in a calendar quarter.
(b) The Secretary of State shall also disclose on the Internet any
contribution report or late independent expenditure report not
covered by paragraph (1), (2), or (3) of subdivision (a) or any other
provision of law.
(c) Committees and other persons that are not required to file
online or electronically by this section may do so voluntarily.
(d) Once a person or entity is required to file online or
electronically, subject to subdivision (a) or (c), the person or
entity shall be required to file all subsequent reports online or
electronically.
(e) It shall be presumed that online or electronic filers file
under penalty of perjury.
(f) Persons filing online or electronically shall also continue to
file required disclosure statements and reports in paper format. The
paper copy shall continue to be the official filing for audit and
other legal purposes until the Secretary of State, pursuant to
Section 84606, determines the system is operating securely and
effectively.
(g) The Secretary of State shall maintain at all times a secured,
official version of all original online and electronically filed
statements and reports required by this chapter. Upon determination
by the Secretary of State, pursuant to Section 84606, that the system
is operating securely and effectively, this online or electronic
version shall be the official version for audit and other legal
purposes.
(h) Except for statements related to a local elective office or a
local ballot measure filed by a candidate for local elective office
who is also a candidate for elective state office, a copy of a
statement, report, or other document filed by online or electronic
means with the Secretary of State shall not be filed with a local
filing officer.
SEC. 39. Section 84609 of the Government Code is amended to read:
84609. All candidates and ballot measure committees who are
required, pursuant to Chapter 4 (commencing with Section 84100), to
file statements, reports, or other documents in connection with a
statewide elective office or state measure appearing on the November
1998 ballot shall provide at the time of filing, in addition to a
paper submission, a copy of the required report on computer disk in
either an ASCII or PDF format with documentation detailing the field
layout or file structure. Filers who submit computer disks which are
not readable, cannot be copied, or do not have documentation have not
complied with the requirements of this section. Candidate and ballot
measure committees who make their report available on the Internet
through the Secretary of State's office are not required to file the
report on computer disk. The Secretary of State shall make copies
available to the public, upon payment of fees covering direct costs
of duplication, or a statutory fee, if applicable. The Secretary of
State shall also disclose online any contribution report or late
independent expenditure report filed in connection with any elective
state office or ballot measure appearing on the November 1998 ballot.
SEC. 40. Section 85300 of the Government Code is repealed.
SEC. 41. Section 85301 of the Government Code is repealed.
SEC. 42. Section 85302 of the Government Code is repealed.
SEC. 43. Section 85303 of the Government Code is repealed.
SEC. 44. Section 85304 of the Government Code is amended to read:
85304. (a) A candidate for elective state office or an elected
state officer may establish a separate account to defray attorney's
fees and other related legal costs incurred for the candidate's or
officer's legal defense if the candidate or officer is subject to one
or more civil or criminal proceedings or administrative proceedings
arising directly out of the conduct of an election campaign, the
electoral process, or the performance of the officer's governmental
activities and duties. These funds may be used only to defray those
attorney's fees and other related legal costs.
(b) All contributions shall be reported in the manner prescribed
by Section 84200.
(c) Once the legal dispute is resolved, the candidate shall
dispose of any funds remaining after all expenses associated with the
dispute are discharged for one or more of the purposes set forth in
paragraphs (1) to (5), inclusive, of subdivision (b) of Section
89519.
SEC. 45. Section 85304.5 of the Government Code is amended to
read:
85304.5. (a) A candidate for elective office other than an
elective state office or an elected officer other than an elected
state officer may establish a separate account pursuant to
subdivision (a) of Section 85304 and may use these funds only to
defray attorney's fees and other related legal costs.
(b) A candidate for an elective office other than an elective
state office may receive contributions to the separate account, which
shall not be subject to any limitations provided by local ordinance.
However, all contributions to these separate accounts shall be
reported in the manner prescribed by Section 84200.
(c) Once the legal dispute is resolved, the candidate or elected
officer shall dispose of any funds remaining in the separate accounts
after all expenses associated with the dispute are discharged for
one or more of the purposes set forth in paragraphs (1) to (5),
inclusive, of subdivision (b) of Section 89519.
SEC. 46. Section 85305 of the Government Code is repealed.
SEC. 47. Section 85306 of the Government Code is amended to read:
85306. (a) A candidate may transfer campaign funds from one
controlled committee to a controlled committee for elective state
office of the same candidate. Contributions transferred shall be
attributed to specific contributors using a "last in, first out" or
"first in, first out" accounting method.
(b) Notwithstanding subdivision (a), a candidate for elective
state office, other than a candidate for statewide elective office,
who possesses campaign funds on January 1, 2001, may use those funds
to seek elective office without attributing the funds to specific
contributors.
(c) Notwithstanding subdivision (a), a candidate for statewide
elective office who possesses campaign funds on November 6, 2002, may
use those funds to seek elective office without attributing the
funds to specific contributors.
SEC. 48. Section 85307 of the Government Code is repealed.
SEC. 49. Section 85309 of the Government Code is repealed.
SEC. 50. Section 85310 of the Government Code is amended to read:
85310. (a) Any person who makes a payment or a promise of payment
totaling fifty thousand dollars ($50,000) or more for a
communication that clearly identifies a candidate for elective state
office, but does not expressly advocate the election or defeat of the
candidate, and that is disseminated, broadcast, or otherwise
published within 45 days of an election, shall file online or
electronically with the Secretary of State a report disclosing the
name of the person, address, occupation, and employer, and amount of
the payment. The report shall be filed within 48 hours of making the
payment or the promise to make the payment.
(b) (1) Except as provided in paragraph (2), if any person has
received a payment or a promise of a payment from other persons
totaling five thousand dollars ($5,000) or more for the purpose of
making a communication described in subdivision (a), the person
receiving the payments shall disclose on the report the name,
address, occupation and employer, and date and amount received from
the person.
(2) A person who receives or is promised a payment that is
otherwise reportable under paragraph (1) is not required to report
the payment if the person is in the business of providing goods or
services and receives or is promised the payment for the purpose of
providing those goods or services.
SEC. 51. Section 85314 of the Government Code is repealed.
SEC. 52. Section 85315 of the Government Code is amended to read:
85315. (a) Notwithstanding any other provision of this chapter,
an elected state officer may establish a committee to oppose the
qualification of a recall measure , and the recall
election. This committee may be established when the elected state
officer receives a notice of intent to recall pursuant to Section
11021 of the Elections Code. An elected state officer may accept
campaign contributions to oppose the qualification of a recall
measure. The voluntary expenditure limits do not apply to
expenditures made to oppose the qualification of a recall measure or
to oppose the recall election.
(b) After the failure of a recall petition or after the recall
election, the committee formed by the elected state officer shall
wind down its activities and dissolve. Any remaining funds shall be
treated as surplus funds and shall be expended within 30 days after
the failure of the recall petition or after the recall election for a
purpose specified in subdivision (b) of Section 89519.
SEC. 53. Section 85316 of the Government Code is amended to read:
85316. (a) Except as provided in subdivision (b), a contribution
for an election may be accepted by a candidate for elective state
office after the date of the election only to the extent that the
contribution does not exceed net debts outstanding from the election.
(b) Notwithstanding subdivision (a), an elected state officer may
accept contributions after the date of the election for the purpose
of paying expenses associated with holding the office provided that
the contributions are not expended for any contribution to any state
or local committee. Contributions received pursuant to this
subdivision shall be deposited into a bank account established solely
for the purposes specified in this subdivision.
(c) Any contribution received pursuant to this section shall be
deemed to be a contribution to that candidate for election to any
state office that he or she may seek during the term of office to
which he or she is currently elected, including, but not limited to,
reelection to the office he or she currently holds. None of the
expenditures made by elected state officers pursuant to this
subdivision shall be subject to the voluntary expenditure limitations
in Section 85400.
SEC. 54. Section 85320 of the Government Code is repealed.
SEC. 55. Section 85321 of the Government Code is repealed.
SEC. 56. Section 85501 of the Government Code is amended to read:
85501. A controlled committee of a candidate may not make
independent expenditures to support or oppose other candidates.
SEC. 57. Section 85701 of the Government Code is repealed.
SEC. 58. Section 85702 of the Government Code is repealed.
SEC. 59. Section 85704 of the Government Code is repealed.
SEC. 60. Section 89510 of the Government Code is amended to read:
89510. All contributions deposited into the campaign account
shall be deemed to be held in trust for expenses associated with the
election of the candidate or for expenses associated with holding
office.
SEC. 61. Section 89511.5 of the Government Code is amended to
read:
89511.5. (a) An incumbent elected officer may utilize his or her
personal funds for expenditures authorized by Section 89510 without
first depositing those funds in his or her controlled committee's
campaign bank account, if both of the following conditions are met:
(1) The expenditures are not campaign expenses.
(2) The treasurer of the committee is provided with a dated
receipt and a written description of the expenditure.
(b) An incumbent elected officer may be reimbursed for
expenditures of his or her personal funds, from either the controlled
committee campaign bank account established pursuant to Section
85201 with respect to election to the incumbent term of office, or
from a controlled committee campaign bank account established
pursuant to Section 85201 with respect to election to a future term
of office, if all of the following conditions are met:
(1) The expenditures are not campaign expenses.
(2) The incumbent elected officer, prior to reimbursement,
provides the treasurer of the committee with a dated receipt and a
written description of each expenditure.
(3) Reimbursement is paid within 90 days of the expenditure, in
the case of a cash expenditure, or within 90 days of the end of the
billing period in which it was included, in the case of an
expenditure charged to a credit card or charge account.
(c) If reimbursement is not paid within the time authorized by
this section, the expenditure shall be reported on the campaign
statement as a nonmonetary contribution received on the 90th day
after the expenditure is paid, in the case of a cash expenditure, or
within 90 days of the end of the billing period in which it was
included, in the case of an expenditure charged to a credit card or
charge account.
(d) This section shall not be construed to authorize an incumbent
elected officer to make expenditures from any campaign bank account
for expenses other than those expenses associated with his or her
election to the specific office for which the account was established
and expenses associated with holding that office.
SEC. 62. Section 89512.5 of the Government Code is amended to
read:
89512.5. (a) Subject to the provisions of subdivision (b), any
expenditure by a committee not subject to the trust imposed by
Section 89510 shall be reasonably related to a political,
legislative, or governmental purpose of the committee.
(b) Any expenditure by a committee that confers a substantial
personal benefit on any individual or individuals with authority to
approve the expenditure of campaign funds held by the committee,
shall be directly related to a political, legislative, or
governmental purpose of the committee.
SEC. 63. Section 89513 of the Government Code is amended to read:
89513. This section governs the use of campaign funds for the
specific expenditures set forth in this section. It is the intent of
the Legislature that this section shall guide the interpretation of
the standard imposed by Section 89512 as applied to other
expenditures not specifically set forth in this section.
(a) (1) Campaign funds shall not be used to pay or reimburse the
candidate, the elected officer, or any individual or individuals with
authority to approve the expenditure of campaign funds held by a
committee, or employees or staff of the committee or the elected
officer's governmental agency for travel expenses and necessary
accommodations except when these expenditures are directly related to
a political, legislative, or governmental purpose.
(2) For the purposes of this section, payments or reimbursements
for travel and necessary accommodations shall be considered as
directly related to a political, legislative, or governmental purpose
if the payments would meet standards similar to the standards of the
Internal Revenue Service pursuant to Sections 162 and 274 of the
Internal Revenue Code for deductions of travel expenses under the
federal income tax law.
(3) For the purposes of this section, payments or reimbursement
for travel by the household of a candidate or elected officer when
traveling to the same destination in order to accompany the candidate
or elected officer shall be considered for the same purpose as the
candidate's or elected officer's travel.
(4) Whenever campaign funds are used to pay or reimburse for
travel expenses and necessary accommodations, any mileage credit that
is earned or awarded pursuant to an airline bonus mileage program
shall be deemed personally earned by or awarded to the individual
traveler. Neither the earning or awarding of mileage credit, nor the
redeeming of credit for actual travel, shall be subject to reporting.
(b) (1) Campaign funds shall not be used to pay for or reimburse
the cost of professional services unless the services are directly
related to a political, legislative, or governmental purpose.
(2) Expenditures by a committee to pay for professional services
reasonably required by the committee to assist it in the performance
of its administrative functions are directly related to a political,
legislative, or governmental purpose.
(3) Campaign funds shall not be used to pay health-related
expenses for a candidate, elected officer, or any individual or
individuals with authority to approve the expenditure of campaign
funds held by a committee, or members of his or her household.
"Health-related expenses" includes, but is not limited to,
examinations by physicians, dentists, psychiatrists, psychologists,
or counselors, expenses for medications, treatments , or
medical equipment, and expenses for hospitalization, health club
dues, and special dietary foods. However, campaign funds may be used
to pay employer costs of health care benefits of a bona fide employee
or independent contractor of the committee.
(c) Campaign funds shall not be used to pay or reimburse fines,
penalties, judgments, or settlements, except those resulting from
either of the following:
(1) Parking citations incurred in the performance of an activity
that was directly related to a political, legislative, or
governmental purpose.
(2) Any other action for which payment of attorney's fees from
contributions would be permitted pursuant to this title.
(d) Campaign funds shall not be used for campaign, business, or
casual clothing , except specialty clothing that is not
suitable for everyday use, including, but not limited to, formal
wear, if this attire is to be worn by the candidate or elected
officer and is directly related to a political, legislative, or
governmental purpose.
(e) (1) Except where otherwise prohibited by law, campaign funds
may be used to purchase or reimburse for the costs of purchase of
tickets to political fundraising events for the attendance of a
candidate, elected officer, or his or her immediate family, or an
officer, director, employee, or staff of the committee or the elected
officer's governmental agency.
(2) Campaign funds shall not be used to pay for or reimburse for
the costs of tickets for entertainment or sporting events for the
candidate, elected officer, or members of his or her immediate
family, or an officer, director, employee, or staff of the committee,
unless their attendance at the event is directly related to a
political, legislative, or governmental purpose.
(3) The purchase of tickets for entertainment or sporting events
for the benefit of persons other than the candidate, elected officer,
or his or her immediate family are governed by subdivision (f).
(f) (1) Campaign funds shall not be used to make personal gifts
unless the gift is directly related to a political, legislative, or
governmental purpose. The refund of a campaign contribution does not
constitute the making of a gift.
(2) Nothing in this section shall prohibit the use of campaign
funds to reimburse or otherwise compensate a public employee for
services rendered to a candidate or committee while on vacation,
leave, or otherwise outside of compensated public time.
(3) An election victory celebration or similar campaign event, or
gifts with a total cumulative value of less than two hundred fifty
dollars ($250) in a single year made to an individual employee, a
committee worker, or an employee of the elected officer's agency, are
considered to be directly related to a political, legislative, or
governmental purpose. For purposes of this paragraph, a gift to a
member of a person's immediate family shall be deemed to be a gift to
that person.
(g) Campaign funds shall not be used to make loans other than to
organizations pursuant to Section 89515, or, unless otherwise
prohibited, to a candidate for elective office, political party, or
committee.
SEC. 64. Section 90002 of the Government Code is amended to read:
90002. (a) Audits and investigations of lobbying firms and
lobbyist employers shall be performed on a biennial basis and shall
cover reports filed during a period of two years.
(b) If a lobbying firm or lobbyist employer keeps a separate
account for all receipts and payments for which reporting is required
by this chapter, the requirement of an audit under subdivision (a)
of Section 90001 shall be satisfied by an audit of that account and
the supporting documentation required to be maintained by Section
86110.
(c) No audit or investigation of any candidate, controlled
committee, or committee primarily supporting or opposing a candidate
or a measure in connection with a report or statement required by
Chapter 4 (commencing with Section 84100), shall begin until after
the last date for filing the first report or statement following the
general, runoff, or special election for the office for which the
candidate ran, or following the election at which the measure was
adopted or defeated, except that audits and investigations of
statewide candidates, their controlled committees, and committees
primarily supporting or opposing those statewide candidates who were
defeated in the primary election and who are not required to file
statements for the general election may begin after the last date for
filing the first report or statement following the primary election.
When the campaign statements or reports of a candidate, controlled
committee, or a committee primarily supporting or opposing a
candidate are audited and investigated pursuant to Section 90001, the
audit and investigation shall cover all campaign statements and
reports filed for the primary and general or special or runoff
elections and any previous campaign statement or report filed
pursuant to Section 84200 since the last election for that office,
but shall exclude any statements or reports which have previously
been audited pursuant to Section 90001 or 90003. When the campaign
statements or reports of a committee primarily supporting or opposing
a measure are audited and investigated, the audit and investigation
shall cover all campaign statements and reports from the beginning
date of the first campaign statement filed by the committee in
connection with the measure. For all other committees, the audit and
investigation shall cover all campaign statements filed during the
previous two calendar years.
SEC. 65. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the duties imposed on a local agency or school district by this act
were expressly included in a ballot measure approved by the voters in
a statewide election, within the meaning of Section 17556 of the
Government Code.
SEC. 66. The Secretary of State shall, pursuant to subdivision (b)
of Section 81012 of the Government Code, submit Sections 3 to 64,
inclusive, of this act to the voters for approval at a statewide
election in accordance with Section 9040 of the Elections Code.
SEC. 67. Sections 1 and 2 of this act shall not become operative
unless and until the voters approve the amendments to the Political
Reform Act of 1974 (Title 9 (commencing with Section 81000) of the
Government Code) made by Sections 3 to 64, inclusive, of this act, at
the statewide election described in Section 66.