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AB-775 Contribution requirements: recurring contributions.(2021-2022)

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Date Published: 07/13/2021 09:00 PM
AB775:v94#DOCUMENT

Amended  IN  Senate  July 13, 2021
Amended  IN  Senate  June 17, 2021
Amended  IN  Assembly  May 24, 2021
Amended  IN  Assembly  April 13, 2021
Amended  IN  Assembly  March 23, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 775


Introduced by Assembly Members Berman and Lorena Gonzalez

February 16, 2021


An act to add Section 85701.5 to the Government Code, relating to the Political Reform Act of 1974.


LEGISLATIVE COUNSEL'S DIGEST


AB 775, as amended, Berman. Contribution requirements: recurring contributions.
The Political Reform Act of 1974 provides for the comprehensive regulation of campaign financing, including contribution limitations and requirements.
This bill would require a candidate or committee to obtain affirmative consent from a person making a recurring contribution at the time of the initial contribution. This bill would also require a candidate or committee that accepts a recurring contribution to provide a receipt for each contribution, to provide information necessary to cancel the recurring contribution, and to immediately cancel a recurring contribution upon request.
Existing law makes a knowing or willful violation of the Political Reform Act of 1974 a misdemeanor. By creating a new 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.
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 85701.5 is added to the Government Code, to read:

85701.5.
 (a) A candidate or committee shall not solicit or accept a recurring contribution from a person unless the candidate or committee receives the affirmative consent of the person to make a recurring contribution at the time of the initial contribution. Passive action by the contributor, such as failing to uncheck a pre-checked box authorizing a recurring contribution, does not meet the requirement of affirmative consent under this section.
(b) A candidate or committee that accepts a recurring contribution described in subdivision (a) shall do all of the following:
(1) Provide a receipt to the contributor that clearly and conspicuously discloses all terms of the recurring contribution within three days of receipt of the after the initial contribution or is received and within three days after each recurring contribution. contribution is received.
(2) Provide all necessary information to cancel the recurring contribution in each communication with the contributor that concerns the contribution.
(3) Immediately cancel a recurring contribution upon request of the contributor.

SEC. 2.

 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. 3.

 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.