Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 834


Introduced by Assembly Member Salas

February 26, 2015


An act tobegin delete amend Section 82015 ofend deletebegin insert add Section 89002 toend insert the Government Code, relating to the Political Reform Act of 1974.

LEGISLATIVE COUNSEL’S DIGEST

AB 834, as amended, Salas. Political Reform Act of 1974:begin delete contributionsend deletebegin insert advertisementsend insert.

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Existing law, the Political Reform Act of 1974, provides for the comprehensive regulation of campaign conduct, including requiring certain disclosures in advertisements made for campaign purposes. Existing law also prohibits an incumbent from sending a newsletter or other mass mailing at public expense.

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This bill would define a “public advertisement” as an advertisement that is paid for from the funds of a state or local public entity. This bill would prohibit a person or entity from disseminating, broadcasting, or otherwise publishing a public advertisement, as defined, within 90 days of an election if the advertisement features, as defined, a candidate who will appear on the ballot at that election.

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Existing law makes a willful violation of the Political Reform Act of 1974 a misdemeanor and subject offenders to criminal penalties.

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The bill would impose a state-mandated local program by creating additional crimes.

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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 23 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, 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. The act provides that a payment made at the behest of a candidate is a contribution to that candidate, unless full and adequate consideration is received from the candidate or it is clear from the surrounding circumstances that the payment was made for purposes unrelated to his or her candidacy for elective office.

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This bill would make a nonsubstantive change to that payment provision.

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Vote: begin deletemajority end deletebegin insert23end insert. Appropriation: no. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: begin deleteno end deletebegin insertyesend insert.

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

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 89002 is added to the end insertbegin insertGovernment Codeend insertbegin insert,
2to read:end insert

begin insert
3

begin insert89002.end insert  

(a) For purposes of this section, the following terms
4have the following meanings:

5(1)  “Public advertisement” means an advertisement, including
6a broadcast, billboard, or newspaper advertisement, that is paid
7for from the funds of a state or local public entity.

8(2) “Featuring a candidate” means containing the voice or
9image of, or a statement attributable to, a candidate.

10(b) A person or entity shall not disseminate, broadcast, or
11otherwise publish a public advertisement featuring a candidate
12for elective office within 90 days before the date of the election at
13which the candidate will appear on the ballot.

end insert
14begin insert

begin insertSEC. 2.end insert  

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begin insert

No reimbursement is required by this act pursuant to
15Section 6 of Article XIII B of the California Constitution because
P3    1the only costs that may be incurred by a local agency or school
2district will be incurred because this act creates a new crime or
3infraction, eliminates a crime or infraction, or changes the penalty
4for a crime or infraction, within the meaning of Section 17556 of
5the Government Code, or changes the definition of a crime within
6the meaning of Section 6 of Article XIII B of the California
7Constitution.

end insert
8begin insert

begin insertSEC. 3.end insert  

end insert
begin insert

The Legislature finds and declares that this bill furthers
9the purposes of the Political Reform Act of 1974 within the meaning
10of subdivision (a) of Section 81012 of the Government Code.

end insert
begin delete
11

SECTION 1.  

Section 82015 of the Government Code is
12amended to read:

13

82015.  

(a) “Contribution” means a payment, a forgiveness of
14a loan, a payment of a loan by a third party, or an enforceable
15promise to make a payment except to the extent that full and
16adequate consideration is received, unless it is clear from the
17surrounding circumstances that it is not made for political purposes.

18(b) (1) A payment made at the behest of a committee, as defined
19in subdivision (a) of Section 82013, is a contribution to the
20committee unless full and adequate consideration is received from
21the committee for making the payment.

22(2) A payment made at the behest of a candidate is a contribution
23to that candidate, unless the criteria in either subparagraph (A) or
24(B) are satisfied:

25(A) Full and adequate consideration is received from the
26candidate.

27(B) It is clear from the surrounding circumstances that the
28payment was made for purposes unrelated to his or her candidacy
29for elective office. The following types of payments are presumed
30to be for purposes unrelated to a candidate’s candidacy for elective
31office:

32(i) A payment made principally for personal purposes, in which
33case it may be considered a gift under the provisions of Section
3482028. Payments that are otherwise subject to the limits of Section
3586203 are presumed to be principally for personal purposes.

36(ii) A payment made by a state, local, or federal governmental
37agency or by a nonprofit organization that is exempt from taxation
38under Section 501(c)(3) of the Internal Revenue Code.

39(iii) A payment not covered by clause (i), made principally for
40legislative, governmental, or charitable purposes, in which case it
P4    1is neither a gift nor a contribution. However, payments of this type
2that are made at the behest of a candidate who is an elected officer
3shall be reported within 30 days following the date on which the
4payment or payments equal or exceed five thousand dollars
5($5,000) in the aggregate from the same source in the same
6calendar year in which they are made. The report shall be filed by
7the elected officer with the elected officer’s agency and shall be
8a public record subject to inspection and copying pursuant to
9subdivision (a) of Section 81008. The report shall contain the
10following information: name of payor, address of payor, amount
11of the payment, date or dates the payment or payments were made,
12the name and address of the payee, a brief description of the goods
13or services provided or purchased, if any, and a description of the
14specific purpose or event for which the payment or payments were
15made. Once the five-thousand-dollar ($5,000) aggregate threshold
16from a single source has been reached for a calendar year, all
17payments for the calendar year made by that source shall be
18disclosed within 30 days after the date the threshold was reached
19or the payment was made, whichever occurs later. Within 30 days
20after receipt of the report, state agencies shall forward a copy of
21these reports to the Commission, and local agencies shall forward
22a copy of these reports to the officer with whom elected officers
23of that agency file their campaign statements.

24(C) For purposes of subparagraph (B), a payment is made for
25purposes related to a candidate’s candidacy for elective office if
26all or a portion of the payment is used for election-related activities.
27For purposes of this subparagraph, “election-related activities”
28shall include, but are not limited to, the following:

29(i) Communications that contain express advocacy of the
30nomination or election of the candidate or the defeat of his or her
31opponent.

32(ii) Communications that contain reference to the candidate’s
33candidacy for elective office, the candidate’s election campaign,
34or the candidate’s or his or her opponent’s qualifications for
35elective office.

36(iii) Solicitation of contributions to the candidate or to third
37persons for use in support of the candidate or in opposition to his
38or her opponent.

P5    1(iv) Arranging, coordinating, developing, writing, distributing,
2preparing, or planning of any communication or activity described
3in clause (i), (ii), or (iii).

4(v) Recruiting or coordinating campaign activities of campaign
5volunteers on behalf of the candidate.

6(vi) Preparing campaign budgets.

7(vii) Preparing campaign finance disclosure statements.

8(viii) Communications directed to voters or potential voters as
9part of activities encouraging or assisting persons to vote if the
10communication contains express advocacy of the nomination or
11election of the candidate or the defeat of his or her opponent.

12(D) A contribution made at the behest of a candidate for a
13different candidate or to a committee not controlled by the
14behesting candidate is not a contribution to the behesting candidate.

15(3) A payment made at the behest of a member of the Public
16Utilities Commission, made principally for legislative,
17governmental, or charitable purposes, is not a contribution.
18However, payments of this type shall be reported within 30 days
19following the date on which the payment or payments equal or
20exceed five thousand dollars ($5,000) in the aggregate from the
21same source in the same calendar year in which they are made.
22The report shall be filed by the member with the Public Utilities
23Commission and shall be a public record subject to inspection and
24copying pursuant to subdivision (a) of Section 81008. The report
25shall contain the following information: name of payor, address
26of payor, amount of the payment, date or dates the payment or
27payments were made, the name and address of the payee, a brief
28description of the goods or services provided or purchased, if any,
29and a description of the specific purpose or event for which the
30payment or payments were made. Once the five-thousand-dollar
31($5,000) aggregate threshold from a single source has been reached
32for a calendar year, all payments for the calendar year made by
33that source shall be disclosed within 30 days after the date the
34threshold was reached or the payment was made, whichever occurs
35later. Within 30 days after receipt of the report, the Public Utilities
36Commission shall forward a copy of these reports to the Fair
37Political Practices Commission.

38(c) “Contribution” includes the purchase of tickets for events
39such as dinners, luncheons, rallies, and similar fundraising events;
40the candidate’s own money or property used on behalf of his or
P6    1her candidacy, other than personal funds of the candidate used to
2pay either a filing fee for a declaration of candidacy or a candidate
3statement prepared pursuant to Section 13307 of the Elections
4Code; the granting of discounts or rebates not extended to the
5public generally or the granting of discounts or rebates by television
6and radio stations and newspapers not extended on an equal basis
7to all candidates for the same office; the payment of compensation
8by any person for the personal services or expenses of any other
9person if the services are rendered or expenses incurred on behalf
10of a candidate or committee without payment of full and adequate
11consideration.

12(d) “Contribution” further includes any transfer of anything of
13value received by a committee from another committee, unless
14full and adequate consideration is received.

15(e) “Contribution” does not include amounts received pursuant
16to an enforceable promise to the extent those amounts have been
17previously reported as a contribution. However, the fact that those
18amounts have been received shall be indicated in the appropriate
19campaign statement.

20(f) (1) Except as provided in paragraph (2) or (3), “contribution”
21does not include a payment made by an occupant of a home or
22office for costs related to any meeting or fundraising event held
23in the occupant’s home or office if the costs for the meeting or
24fundraising event are five hundred dollars ($500) or less.

25(2) “Contribution” includes a payment made by a lobbyist or a
26cohabitant of a lobbyist for costs related to a fundraising event
27held at the home of the lobbyist, including the value of the use of
28the home as a fundraising event venue. A payment described in
29this paragraph shall be attributable to the lobbyist for purposes of
30Section 85702.

31(3) “Contribution” includes a payment made by a lobbying firm
32for costs related to a fundraising event held at the office of the
33lobbying firm, including the value of the use of the office as a
34fundraising event venue.

35(g) Notwithstanding the foregoing definition of “contribution,”
36the term does not include volunteer personal services or payments
37made by any individual for his or her own travel expenses if the
38payments are made voluntarily without any understanding or
39agreement that they shall be, directly or indirectly, repaid to him
40or her.

P7    1(h) “Contribution” further includes the payment of public
2moneys by a state or local governmental agency for a
3communication to the public that satisfies both of the following:

4(1) The communication expressly advocates the election or
5defeat of a clearly identified candidate or the qualification, passage,
6or defeat of a clearly identified measure, or, taken as a whole and
7in context, unambiguously urges a particular result in an election.

8(2) The communication is made at the behest of the affected
9candidate or committee.

10(i) “Contribution” further includes a payment made by a person
11to a multipurpose organization as defined and described in Section
1284222.

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