Bill Text: CA AB9 | 2009-2010 | Regular Session | Enrolled

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Political Reform Act of 1974: expenditures.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2009-10-11 - Chaptered by Secretary of State - Chapter 363, Statutes of 2009. [AB9 Detail]

Download: California-2009-AB9-Enrolled.html

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BILL NUMBER: AB 9	ENROLLED
	BILL TEXT

	PASSED THE SENATE  SEPTEMBER 3, 2009
	PASSED THE ASSEMBLY  SEPTEMBER 11, 2009
	AMENDED IN SENATE  JUNE 24, 2009

INTRODUCED BY   Assembly Member John A. Perez
   (Coauthor: Assembly Member Beall)

                        DECEMBER 1, 2008

   An act to amend Sections 82015 and 82031 of the Government Code,
relating to the Political Reform Act of 1974.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 9, John A. Perez. Political Reform Act of 1974: expenditures.
    Under the Political Reform Act of 1974, a "contribution" means a
payment, a forgiveness of a loan, a payment of a loan by a 3rd 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. Under the act, an "independent expenditure" is an
expenditure in connection with a communication which 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 but which is not made to or at the
behest of the affected candidate or committee. A candidate or
committee that makes an independent expenditure totaling $1,000 or
more in a calendar year to support or oppose a measure or
qualification of a measure is required to file a report of that
disclosure with the Fair Political Practices Commission. A person who
violates the act is subject to administrative, civil, and criminal
penalties.
   This bill would provide that a contribution includes the payment
of public moneys by a state or local governmental agency for a
communication to the public which 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, and which is made at the behest of the affected candidate
or committee. The bill would further provide that an independent
expenditure includes the payment of public moneys by a state or local
governmental agency. By placing administrative, civil, and criminal
penalties on persons who violate this bill, 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 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 and compliance with specified
procedural requirements.
   This bill would declare that it furthers the purposes of the act.



THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 82015 of the Government Code is amended to
read:
   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 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
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 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 must 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 Fair
Political Practices 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 must 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) "Contribution" 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 five hundred dollars ($500) or less.

   (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.
  SEC. 2.  Section 82031 of the Government Code is amended to read:
   82031.  "Independent expenditure" means an expenditure made by any
person, including a payment of public moneys by a state or local
governmental agency, in connection with a communication which
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 but which is not made to or
at the behest of the affected candidate or committee.
  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 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.