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SB-888 Political Reform Act of 1974.(2023-2024)

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Date Published: 04/17/2023 02:00 PM
SB888:v98#DOCUMENT

Amended  IN  Senate  April 17, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill
No. 888

Introduced by Committee on Elections and Constitutional Amendments (Senators Glazer (Chair), Allen, McGuire, Menjivar, Newman, Nguyen, and Umberg)

March 15, 2023

An act to amend Sections 83105, 84101, 84504.2, 84504.4, 84615, 85300, 85307, 85400, and 91011 of, to add Section 84227 to, and to repeal Section 82052.5 of, the Government Code, relating to the Political Reform Act of 1974.


LEGISLATIVE COUNSEL'S DIGEST


SB 888, as amended, Committee on Elections and Constitutional Amendments. Political Reform Act of 1974.
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 The act is enforced by the Fair Political Practices Commission, and existing law requires that each member of the Commission, during their tenure on the Commission, refrain from holding or seeking other public office, serve as an officer of any political party or partisan organization, or participate in or contribute to an election campaign.
This bill would require a member of the Commission who declares a candidacy for elective office to resign from the Commission. The bill would also prohibit the chair of the Commission from filing to be a candidate for elective office until at least one year after their service in this position expires.
The Political Reform Act of 1974 requires a committee that receives contributions totaling $2,000 or more in a calendar year to file a statement of organization with the Secretary of State and, if applicable, a local filing officer.
This 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 it 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. The bill would also require the Secretary of State or local filing officer, as applicable, to redact the street name and building number on a campaign statement or report before making it available to the public in any form.
The Political Reform Act of 1974 requires certain political advertisements to make specified disclosures and specifies the required form, content, and presentation of the disclosures depending on the medium in which the advertisement appears.
This bill would clarify the required form and content of disclosures on print advertisements.

Existing law prohibits the loan of funds or extension of credit to a candidate unless made by a commercial lending institution under terms available to members of the general public. Existing law caps the amount a candidate can loan the candidate’s own campaign at $100,000.

This bill would eliminate this cap.

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.

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.
A violation of the act’s provisions is punishable as a misdemeanor. By expanding the scope of an existing crime, as well as by imposing new duties on local officers, the 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 with regard to certain mandates no reimbursement is required by this act for a specified reason.
With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
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 83105 of the Government Code is amended to read:

83105.
 Each member of the commission Commission shall be an elector. A member of the commission, Commission, during the member’s tenure, shall not hold any other public office, serve as an officer of any political party or partisan organization, participate in or contribute to an election campaign, or employ or be employed as a lobbyist nor, during the member’s term of appointment, seek election to any other public office. lobbyist. If a member of the Commission declares a candidacy for elective office, the member shall resign from the Commission. The chair of the Commission shall not file to be a candidate for any elective office until at least one year after their service in this position expires. Members of the commission Commission may be removed by the Governor, with concurrence of the Senate, for substantial neglect of duty, gross misconduct in office, inability to discharge the powers and duties of office or violation of this section, after written notice and opportunity for a reply.

SECTION 1.SEC. 2.

 Section 82052.5 of the Government Code is repealed.

SEC. 2.SEC. 3.

 Section 84101 of the Government Code, as amended by Section 158 of Chapter 50 of the Statutes of 2021, 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 an original campaign statement 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 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 send a copy of the statement to the clerk of each city in the county that 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 before the date of an election in connection with which the committee is required to file preelection statements, but after the closing date of the last campaign statement required to be filed before the election pursuant to Section 84200.8 or 84200.9, 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 subdivision shall be filed with the filing officer with whom the committee is required to file an original campaign statement 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 an original campaign statement 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 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 a bank account number included on the copy of the statement of organization filed with the local filing officer pursuant to subdivision (a). A local filing officer shall not require a committee to disclose a bank account number on the copy of the statement of organization filed with the local filing officer as a condition of accepting that filing.
(2) Notwithstanding Section 81008 or the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code), 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.

SEC. 3.SEC. 4.

 Section 84101 of the Government Code, as amended by Section 159 of Chapter 50 of the Statutes of 2021, 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 an original campaign statement 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 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 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, an original 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 an original campaign statement 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 the statement of organization with the local filing officer with whom the committee is required to file an original campaign statement 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 a bank account number included on the copy of the statement of organization filed with the local filing officer pursuant to subdivision (a). A local filing officer shall not require a committee to disclose a bank account number on the copy of the statement of organization filed with the local filing officer as a condition of accepting that filing.
(2) Notwithstanding Section 81008 or the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code), 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.

SEC. 4.SEC. 5.

 Section 84227 is added to the Government Code, to read:

84227.
 Notwithstanding Section 81008 or the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code), the Secretary of State or the local filing officer shall redact the street name and building number on a report or statement filed pursuant to this article with the Secretary of State or the local filing officer, as applicable, before making the report or statement available to the public in any form.

SEC. 5.SEC. 6.

 Section 84504.2 of the Government Code, as amended by Section 5 of Chapter 777 of the Statutes of 2018, is amended to read:

84504.2.
 (a) A print advertisement paid for by a committee, other than a political party committee or a candidate controlled committee established for an elective office of the controlling candidate, shall include the disclosures required by Sections 84502, 84503, and 84506.5, displayed as follows:
(1) The disclosure area shall have a solid white background and shall be in a printed or drawn box on the bottom of at least one page that is set apart from any other printed matter. All text in the disclosure area shall be in contrasting color and centered horizontally in the disclosure area.
(2) The text shall be in standard Arial Regular type with a type size of at least 10-point for printed advertisements designed to be individually distributed, including, but not limited to, mailers, flyers, and door hangers.
(3) The top of the disclosure area shall include the disclosure required by Sections 84502 and 84503. The text of the disclosure shall be underlined if there are any top contributors.
(4) The top contributors, if any, shall each be disclosed on a separate horizontal line separate from any other text, in descending order, beginning with the top contributor who made the largest cumulative contributions on the first line. The name of each of the top contributors shall be centered horizontally in the disclosure area and shall not be underlined. The names of the top contributors shall not be printed in a type that is condensed to be narrower than a normal non-condensed standard Arial Regular type.
(5) A committee subject to Section 84506.5 shall include the disclosure required by Section 84506.5, which shall be underlined and on a separate line below any of the top contributors.
(6) A committee subject to Section 84223 shall next include the text “Funding Details At [insert Commission Internet Web site],” which shall be underlined and printed on a line separate from any other text.
(b) Notwithstanding paragraphs (2) and (4) of subdivision (a), the disclosures required by Sections 84502, 84503, and 84506.5 on a printed advertisement that is larger than those designed to be individually distributed, including, but not limited to, yard signs or billboards, shall be in standard Arial Regular type with a total height of at least 5 percent of the height of the advertisement, and printed on a solid background with sufficient contrast that is easily readable by the average viewer. The text may be adjusted so it does not appear on separate horizontal lines, with the top contributors separated by a comma.
(c) Notwithstanding the definition of “top contributors” in paragraph (1) of subdivision (c) of Section 84501, newspaper, magazine, or other public print advertisements that are 20 square inches or less shall be required to disclose only the largest top contributor of fifty thousand dollars ($50,000) or more.
(d) The disclosure area shall not contain any text or image that is not required by this section, or by any other applicable law.

SEC. 6.SEC. 7.

 Section 84504.4 of the Government Code is amended to read:

84504.4.
 (a) A radio or television advertisement that is paid for by a political party or a candidate controlled committee established for an elective office of the controlling candidate, and that does not support or oppose a ballot measure and is not paid for by an independent expenditure, shall include the disclosure required by Section 84502 subject to the following requirements:
(1) In a radio advertisement, the words shall be included at the beginning or end of the advertisement and read in a clearly spoken manner and in a pitch and tone substantially similar to the rest of the advertisement.
(2) In a television advertisement, the words shall appear in writing for at least four seconds with letters in a type size that is greater than or equal to 4 percent of the height of the screen.
(b) An advertisement that is made via a form of electronic media that allows users to engage in discourse and post content, or any other type of social media, that is paid for by a political party or a candidate controlled committee established for an elective office of the controlling candidate, and that does not support or oppose a ballot measure and is not paid for by an independent expenditure, shall include the disclosure required by Section 84502 in accordance with subdivision (g) of Section 84504.3.

SEC. 7.SEC. 8.

 Section 84615 of the Government Code, as added by Section 1 of Chapter 126 of the Statutes of 2012, is amended to read:

84615.
 A local government agency may require an elected officer, candidate, committee, or other person required to file statements, reports, or other documents required by Chapter 4 (commencing with Section 84100), except an elected officer, candidate, committee, or other person who receives contributions totaling less than one thousand dollars ($1,000), and makes expenditures totaling less than one thousand dollars ($1,000), in a calendar year, to file those statements, reports, or other documents online or electronically with a local filing officer. A local government agency that requires online or electronic filing pursuant to this section shall comply with all of the following:
(a) The legislative body for the local government agency shall adopt an ordinance approving the use of online or electronic filing, which shall include a legislative finding that the online or electronic filing system will operate securely and effectively and would not unduly burden filers. The ordinance adopted by the legislative body for the local government agency may, at the discretion of that legislative body, specify that the electronic or online filing requirements apply only to specifically identified types of filings or are triggered only by identified monetary thresholds. In any instance in which the original statement, report, or other document is required to be filed with the Secretary of State and a copy of that statement, report, or other document is required to be filed with the local government agency, the ordinance may permit, but shall not require, that the copy be filed online or electronically.
(b) The online or electronic filing system shall only accept a filing in the standardized record format that is developed by the Secretary of State pursuant to paragraph (2) of subdivision (a) of Section 84602 and that is compatible with the Secretary of State’s system for receiving an online or electronic filing.
(c) The online or electronic filing system shall ensure the integrity of the data transmitted and shall include safeguards against efforts to tamper with, manipulate, alter, or subvert the data.
(d) (1) The local filing officer shall issue to a person who files a statement, report, or other document online or electronically an electronic confirmation that notifies the filer that the statement, report, or other document was received. The confirmation shall include the date and the time that the statement, report, or other document was received by the filing officer and the method by which the filer may view and print the data received by the filing officer.
(2) A copy retained by the filer of a statement, report, or other document that was filed online or electronically and the confirmation issued pursuant to paragraph (1) that shows the filer timely filed the statement, report, or other document shall create a rebuttable presumption that the filer timely filed the statement, report, or other document.
(e) The date of filing for a statement, report, or other document that is filed online or electronically shall be the day that it is received by the local filing officer.
(f) The local filing officer shall 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. 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 by the filer.
(g) The online or electronic filing system shall include a procedure for filers to comply with the requirement that they sign statements and reports under penalty of perjury pursuant to Section 81004.
(h) The local government agency shall enable filers to complete and submit filings free of charge.
(i) The local filing officer shall maintain, for a period of at least 10 years commencing from the date filed, a secured, official version of each online or electronic statement, report, or other document filed pursuant to this section, which shall serve as the official version of that record for purpose of audits and any other legal purpose. Data that has been maintained for at least 10 years may then be archived in a secure format.
(j) Notwithstanding any other provision of law, any statement, report, or other document filed online or electronically pursuant to this section shall not be required to be filed with the local filing officer in paper format.

SEC. 8.SEC. 9.

 Section 84615 of the Government Code, as amended by Section 28 of Chapter 662 of the Statutes of 2018, is amended to read:

84615.
 A local government agency may require an elected officer, candidate, committee, or other person required to file statements, reports, or other documents required by Chapter 4 (commencing with Section 84100), except an elected officer, candidate, committee, or other person who receives contributions totaling less than two thousand dollars ($2,000), and makes expenditures totaling less than two thousand dollars ($2,000) in a calendar year, to file those statements, reports, or other documents online or electronically with a local filing officer. A local government agency that requires online or electronic filing pursuant to this section shall comply with all of the following:
(a) The legislative body for the local government agency shall adopt an ordinance approving the use of online or electronic filing, which shall include a legislative finding that the online or electronic filing system will operate securely and effectively and would not unduly burden filers. The ordinance adopted by the legislative body for the local government agency may, at the discretion of that legislative body, specify that the electronic or online filing requirements apply only to specifically identified types of filings or are triggered only by identified monetary thresholds. In any instance in which the original statement, report, or other document is required to be filed with the Secretary of State and a copy of that statement, report, or other document is required to be filed with the local government agency, the ordinance may permit, but shall not require, that the copy be filed online or electronically.
(b) The online or electronic filing system shall accept a filing in the standardized record format that was developed by the Secretary of State pursuant to paragraph (2) of subdivision (a) of Section 84602, or the local government agency may transition to the Cal-Access Replacement System format, and then the system shall accept a filing in the new standardized record format developed by the Secretary of State pursuant to subdivision (b) of Section 84602, and that is compatible with the Secretary of State’s system for receiving an online or electronic filing.
(c) The online or electronic filing system shall ensure the integrity of the data transmitted and shall include safeguards against efforts to tamper with, manipulate, alter, or subvert the data.
(d) (1) The local filing officer shall issue to a person who files a statement, report, or other document online or electronically an electronic confirmation that notifies the filer that the statement, report, or other document was received. The confirmation shall include the date and the time that the statement, report, or other document was received by the filing officer and the method by which the filer may view and print the data received by the filing officer.
(2) A copy retained by the filer of a statement, report, or other document that was filed online or electronically and the confirmation issued pursuant to paragraph (1) that shows the filer timely filed the statement, report, or other document shall create a rebuttable presumption that the filer timely filed the statement, report, or other document.
(e) The date of filing for a statement, report, or other document that is filed online or electronically shall be the day that it is received by the local filing officer.
(f) The local filing officer shall 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. 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 by the filer.
(g) The online or electronic filing system shall include a procedure for filers to comply with the requirement that they sign statements and reports under penalty of perjury pursuant to Section 81004.
(h) The local government agency shall enable filers to complete and submit filings free of charge.
(i) The local filing officer shall maintain, for a period of at least 10 years commencing from the date filed, a secured, official version of each online or electronic statement, report, or other document filed pursuant to this section, which shall serve as the official version of that record for purpose of audits and any other legal purpose. Data that has been maintained for at least 10 years may then be archived in a secure format.
(j) Notwithstanding any other provision of law, any statement, report, or other document filed online or electronically pursuant to this section shall not be required to be filed with the local filing officer in paper format.

SEC. 9.SEC. 10.

 Section 85300 of the Government Code is amended to read:

85300.
 A public officer shall not expend, and a candidate shall not accept, any public moneys for the purpose of seeking elective office.

SEC. 10.Section 85307 of the Government Code is amended to read:
85307.

(a)The provisions of this article regarding loans apply to extensions of credit, but do not apply to loans made to a candidate by a commercial lending institution in the lender’s regular course of business on terms available to members of the general public for which the candidate is personally liable.

(b)A candidate shall not charge interest on any loan the candidate made to the candidate’s campaign.

SEC. 11.

 Section 85400 of the Government Code is amended to read:

85400.
 (a) A candidate for elective state office, other than the Board of Administration of the Public Employees’ Retirement System, who voluntarily accepts expenditure limits shall not make campaign expenditures in excess of the following:
(1) For an Assembly candidate, four hundred thousand dollars ($400,000) in the primary or special primary election and seven hundred thousand dollars ($700,000) in the general or special general election.
(2) For a Senate candidate, six hundred thousand dollars ($600,000) in the primary or special primary election and nine hundred thousand dollars ($900,000) in the general or special general election.
(3) For a candidate for the State Board of Equalization, one million dollars ($1,000,000) in the primary election and one million five hundred thousand dollars ($1,500,000) in the general election.
(4) For a statewide candidate other than a candidate for Governor or the State Board of Equalization, four million dollars ($4,000,000) in the primary election and six million dollars ($6,000,000) in the general election.
(5) For a candidate for Governor, six million dollars ($6,000,000) in the primary election and ten million dollars ($10,000,000) in the general election.
(b) For purposes of this section, “campaign expenditures” has the same meaning as “election-related activities” as defined in Section 82022.5, except that it does not include preparing campaign finance disclosure statements.
(c) A campaign expenditure made by a political party on behalf of a candidate shall not be attributed to the limitations on campaign expenditures set forth in this section.

SEC. 12.

 Section 91011 of the Government Code is amended to read:

91011.
 (a) A civil action alleging a violation in connection with a report or statement required by Chapter 4 (commencing with Section 84100) shall not be filed more than four years after an audit could begin as set forth in subdivision (c) of Section 90002, as that section existed on January 1, 2014, or more than one year after the Franchise Tax Board forwards its report to the commission, pursuant to Section 90004, of any audit conducted of the alleged violator, whichever period is less.
(b) No civil action alleging a violation of any provisions of this title, other than those described in subdivision (a), shall be filed more than four years after the date the violation occurred.

SEC. 13.

 The Legislature finds and declares that Sections 2 3 and 3 4 of this act, which amend Section 84101 of the Government Code, and Sections 7 8 and 8 9 of this act, which amend Section 84615 of the Government Code, impose 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 Sections 2, 3, 7, and 8 of this act are necessary.

SEC. 14.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution for certain costs that may be incurred by a local agency or school district because, in that regard, 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.
However, if the Commission on State Mandates determines that this act contains other costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.

SEC. 15.

 Sections 3 and 8 of this act shall not become operative until the date that the Secretary of State certifies an online filing and disclosure system pursuant to paragraph (7) of subdivision (b) of Section 84602 of the Government Code.

SEC. 16.

 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.