Amended in Assembly March 10, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 1673

Introduced by Assembly Member Garcia

February 12, 2014

An act to amend Section begin delete 10100 of the Elections Code, relating to elections. end delete begin insert 82015 of the Government Code, relating to the Political Reform Act of 1974. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 1673, as amended, Garcia. begin delete Elections: nomination papers. end delete begin insert Political Reform Act of 1974: contributions. end insert

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Existing law, the Political Reform Act of 1974, provides for the comprehensive regulation of campaign financing, including requiring the reporting of campaign contributions and expenditures and imposing other reporting and recordkeeping requirements on campaign committees. “Contribution” is defined for purposes of the act as a payment, a forgiveness of a loan, a payment of a loan by a third party, or an enforceable promise to make a payment, except to the extent that full and adequate consideration is received, unless it is clear from the surrounding circumstances that it is not made for political purposes. The definition does not include a payment made by an occupant of a home or office for costs related to any meeting or fundraising event held in the occupant’s home or office if the costs for the meeting or fundraising event are $500 or less.

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This bill would revise the definition of “contribution” to exclude a lobbyist, lobbying firm, or lobbyist employer from the exemption authorizing a payment of $500 or less by the occupant of a home for costs related to a meeting or fundraising event at the home, thereby making those payments by a lobbyist, firm, or lobbyist employer a contribution for purposes of the act.

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A violation of the act’s provisions is punishable as a misdemeanor. By expanding the scope of an existing crime, this bill would impose a state-mandated local program.

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The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

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This bill would provide that no reimbursement is required by this act for a specified reason.

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The Political Reform Act of 1974, an initiative measure, provides that the Legislature may amend the act to further the act’s purposes upon a 2⁄3 vote of each house and compliance with specified procedural requirements.

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This bill would declare that it furthers the purposes of the act.

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Existing law authorizes a county elections official, when he or she is required to examine the signatures upon any nomination paper or petition of a candidate for municipal office, to employ necessary help for the examination.

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This bill would make a technical, nonsubstantive change to those provisions.

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Vote:  begin delete majority end delete begin insert ²⁄₃ end insert . Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program:  begin delete no end delete begin insert yes end insert .

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

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begin insert SECTION 1. end insert   

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begin insert Section 82015 of the end insert begin insert Government Code end insert begin insert is
amended to read: end insert

82015.  

(a) “Contribution” means a payment, a forgiveness of
a loan, a payment of a loan by a third party, or an enforceable
promise to make a payment begin insert , end insert except to the extent that full and
adequate consideration is received, unless it is clear from the
surrounding circumstances that it is not made for political purposes.

(b) (1) A payment made at the behest of a committee as defined
in subdivision (a) of Section 82013 is a contribution to the
committee begin insert , end insert unless full and adequate consideration is received from
the committee for making the payment.

(2) A payment made at the behest of a candidate is a contribution
to the candidate begin insert , end insert unless the criteria in either subparagraph (A) or
(B) are satisfied:

(A) Full and adequate consideration is received from the
candidate.

(B) It is clear from the surrounding circumstances that the
payment was made for purposes unrelated to his or her candidacy
for elective office. The following types of payments are presumed
to be for purposes unrelated to a candidate’s candidacy for elective
office:

(i) A payment made principally for personal purposes, in which
case it may be considered a gift under the provisions of Section
82028. Payments that are otherwise subject to the limits of Section
86203 are presumed to be principally for personal purposes.

(ii) A payment made by a state, local, or federal governmental
agency or by a nonprofit organization that is exempt from taxation
under Section 501(c)(3) of the Internal Revenue Code.

(iii) A payment not covered by clause (i), made principally for
legislative, governmental, or charitable purposes, in which case it
is neither a gift nor a contribution. However, payments of this type
that are made at the behest of a candidate who is an elected officer
shall be reported within 30 days following the date on which the
payment or payments equal or exceed five thousand dollars
($5,000) in the aggregate from the same source in the same
calendar year in which they are made. The report shall be filed by
the elected officer with the elected officer’s agency and shall be
a public record subject to inspection and copying pursuant to
subdivision (a) of Section 81008. The report shall contain the
following information: name of payor, address of payor, amount
of the payment, date or dates the payment or payments were made,
the name and address of the payee, a brief description of the goods
or services provided or purchased, if any, and a description of the
specific purpose or event for which the payment or payments were
made. Once the five-thousand-dollar ($5,000) aggregate threshold
from a single source has been reached for a calendar year, all
payments for the calendar year made by that source begin delete must end delete begin insert shall end insert be
disclosed within 30 days after the date the threshold was reached
or the payment was made, whichever occurs later. Within 30 days
after receipt of the report, state agencies shall forward a copy of
these reports to the begin delete Fair Political Practices end delete Commission, and local
agencies shall forward a copy of these reports to the officer with
whom elected officers of that agency file their campaign
statements.

(C) For purposes of subparagraph (B), a payment is made for
purposes related to a candidate’s candidacy for elective office if
all or a portion of the payment is used for election-related activities.
For purposes of this subparagraph, “election-related activities”
shall include, but are not limited to, the following:

(i) Communications that contain express advocacy of the
nomination or election of the candidate or the defeat of his or her
opponent.

(ii) Communications that contain reference to the candidate’s
candidacy for elective office, the candidate’s election campaign,
or the candidate’s or his or her opponent’s qualifications for
elective office.

(iii) Solicitation of contributions to the candidate or to third
persons for use in support of the candidate or in opposition to his
or her opponent.

(iv) Arranging, coordinating, developing, writing, distributing,
preparing, or planning of any communication or activity described
in clause (i), (ii), or (iii).

(v) Recruiting or coordinating campaign activities of campaign
volunteers on behalf of the candidate.

(vi) Preparing campaign budgets.

(vii) Preparing campaign finance disclosure statements.

(viii) Communications directed to voters or potential voters as
part of activities encouraging or assisting persons to vote if the
communication contains express advocacy of the nomination or
election of the candidate or the defeat of his or her opponent.

(D) A contribution made at the behest of a candidate for a
different candidate or to a committee not controlled by the
behesting candidate is not a contribution to the behesting candidate.

(3) A payment made at the behest of a member of the Public
Utilities Commission, made principally for legislative,
governmental, or charitable purposes, is not a contribution.
However, payments of this type shall be reported within 30 days
following the date on which the payment or payments equal or
exceed five thousand dollars ($5,000) in the aggregate from the
same source in the same calendar year in which they are made.
The report shall be filed by the member with the Public Utilities
Commission and shall be a public record subject to inspection and
copying pursuant to subdivision (a) of Section 81008. The report
shall contain the following information: name of payor, address
of payor, amount of the payment, date or dates the payment or
payments were made, the name and address of the payee, a brief
description of the goods or services provided or purchased, if any,
and a description of the specific purpose or event for which the
payment or payments were made. Once the five-thousand-dollar
($5,000) aggregate threshold from a single source has been reached
for a calendar year, all payments for the calendar year made by
that source begin delete must end delete begin insert shall end insert be disclosed within 30 days after the date
the threshold was reached or the payment was made, whichever
occurs later. Within 30 days after receipt of the report, the Public
Utilities Commission shall forward a copy of these reports to the
Fair Political Practices Commission.

(c) “Contribution” includes the purchase of tickets for events
such as dinners, luncheons, rallies, and similar fundraising events;
the candidate’s own money or property used on behalf of his or
her candidacy other than personal funds of the candidate used to
pay either a filing fee for a declaration of candidacy or a candidate
statement prepared pursuant to Section 13307 of the Elections
Code; the granting of discounts or rebates not extended to the
public generally or the granting of discounts or rebates by television
and radio stations and newspapers not extended on an equal basis
to all candidates for the same office; the payment of compensation
by any person for the personal services or expenses of any other
person if the services are rendered or expenses incurred on behalf
of a candidate or committee without payment of full and adequate
consideration.

(d) “Contribution” further includes any transfer of anything of
value received by a committee from another committee, unless
full and adequate consideration is received.

(e) “Contribution” does not include amounts received pursuant
to an enforceable promise to the extent those amounts have been
previously reported as a contribution. However, the fact that those
amounts have been received shall be indicated in the appropriate
campaign statement.

(f)  begin insert (1) end insert begin insert   end insert “Contribution” does not include a payment made by an
occupant of begin delete a home or end delete begin insert an end insert office for costs related to any meeting
or fundraising event held in the occupant’s begin delete home or end delete office if the
costs for the meeting or fundraising event are five hundred dollars
($500) or less.

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(2) “Contribution” does not include a payment made by an
occupant of a home who is not a lobbyist, lobbying firm, or lobbyist
employer for costs related to any meeting or fundraising event
held in the occupant’s home if the costs for the meeting or
fundraising event are five hundred dollars ($500) or less.

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(g) Notwithstanding the foregoing definition of “contribution,”
the term does not include volunteer personal services or payments
made by any individual for his or her own travel expenses if the
payments are made voluntarily without any understanding or
agreement that they shall be, directly or indirectly, repaid to him
or her.

(h) “Contribution” further includes the payment of public
moneys by a state or local governmental agency for a
communication to the public that satisfies both of the following:

(1) The communication expressly advocates the election or
defeat of a clearly identified candidate or the qualification, passage,
or defeat of a clearly identified measure, or, taken as a whole and
in context, unambiguously urges a particular result in an election.

(2) The communication is made at the behest of the affected
candidate or committee.

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begin insert SEC. 2. end insert   

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No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIII B of the California
Constitution.

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begin insert SEC. 3. end insert   

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The Legislature finds and declares that this bill furthers
the purposes of the Political Reform Act of 1974 within the meaning
of subdivision (a) of Section 81012 of the Government Code.

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SECTION 1.  

Section 10100 of the Elections Code is amended
to read:

10100.  

Whenever the county elections official is required to
examine the signatures upon any nomination paper or petition of
a candidate for a municipal office, he or she may employ necessary
help for the examination. The cost shall be paid by the city.

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