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SB-423 Political Reform Act of 1974: committee accounts.(2019-2020)

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Date Published: 04/09/2019 09:00 PM
SB423:v98#DOCUMENT

Amended  IN  Senate  April 09, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill
No. 423


Introduced by Senator Umberg

February 21, 2019


An act to amend Section 84101 of, and to add Section 84109 to to, the Government Code, relating to the Political Reform Act of 1974.


LEGISLATIVE COUNSEL'S DIGEST


SB 423, as amended, Umberg. Political Reform Act of 1974: committee accounts.

The

(1) 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 requires a candidate committee to establish one campaign contribution account at an office of a financial institution located in the state and generally requires all candidate contributions to be made to the account and all candidate expenditures to be made from the account. The act requires the candidate’s statement of organization to include the name and address of the financial institution in which the committee has established an account and the account number.
This bill would impose a similar requirement requirements on non-candidate committees that qualify as a committee under the act by receiving contributions totaling $2,000 or more in a calendar year.
The bill would authorize a committee to redact the bank account number on a copy of a statement of organization filed with a local filing officer, and would require the Secretary of State to redact the bank account number on a statement of organization filed with the Secretary of State before making the statement available to the public in any form.

A

(2) A violation of the act’s provisions is punishable as a misdemeanor. By expanding the scope of a crime, 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.
(3) Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.

The

(4) 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 of the Legislature and compliance with specified procedural requirements.
This bill would declare that it furthers the purposes of the act.
Vote: 2/3   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

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


SECTION 1.

 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 online or electronically 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 email or send a copy of statements filed pursuant to this section to the county elections official of each county that he or she the Secretary of State 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 email or send a copy of the statement to the clerk of each city in the county that he or she the county elections official 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 16 days before the date of an election in connection with which the committee is required to file preelection statements, the committee shall file, within 24 hours of qualifying as a committee, the original of its statement of organization online or electronically with the Secretary of State, and a copy 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 by email, fax, online transmission, guaranteed overnight delivery, or personal delivery.
(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, within 24 hours of qualifying as a committee, the original of its statement of organization online or electronically with the Secretary of State. The committee shall also file a copy of its statement with the filing officer with whom the committee is required to file the original of its campaign reports pursuant to Section 84215, and at all locations required for the candidate or candidates supported or opposed by the independent expenditures, by email, facsimile transmission, guaranteed overnight delivery, or personal delivery. 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 two thousand dollars ($2,000) 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.
(e) (1) A committee may redact the bank account number on a copy of a statement of organization filed with a local filing officer. A local filing officer shall not require a committee to disclose the bank account number on a statement of organization before accepting the filing, unless otherwise permitted by Commission regulation.
(2) Notwithstanding Section 81008 or the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1), the Secretary of State shall redact the bank account number on a statement of organization filed with the Secretary of State before making the statement available to the public in any form.

SECTION 1.SEC. 2.

 Section 84109 is added to the Government Code, to read:

84109.
 (a) Within 10 days of qualification as a committee under subdivision (a) of Section 82013, the committee shall establish one campaign contribution account for the committee at an office of a financial institution located in the state.
(b) As required by subdivision (f) of Section 84102, the committee shall set forth the name and address of the financial institution where the committee has established a campaign contribution account and the account number on the committee statement of organization filed pursuant to Sections 84101 and 84103.
(c) All contributions or loans made to the committee or to a person on behalf of the committee shall be deposited in the account.
(d) All campaign expenditures by the committee shall be made from the account.
(e) This section does not apply to candidate committees that are subject to Section 85201.

SEC. 2.SEC. 3.

 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.

SEC. 4.

 The Legislature finds and declares that Section 1 of this act, which amends Section 84101 of the Government Code, imposes a limitation on the public’s right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:
In order to protect filers’ privacy and to prevent financial fraud, the limitations on the public’s right of access imposed by Section 1 of this act are necessary.

SEC. 3.SEC. 5.

 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.