Bill Text: CA AB2318 | 2015-2016 | Regular Session | Amended

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

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Bill Title: Nonprofit organizations: use of public resources.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2016-09-29 - Chaptered by Secretary of State - Chapter 825, Statutes of 2016. [AB2318 Detail]

Download: California-2015-AB2318-Amended.html

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BILL NUMBER: AB 2318	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 18, 2016
	AMENDED IN ASSEMBLY  MARCH 28, 2016

INTRODUCED BY   Assembly Member Low

                        FEBRUARY 18, 2016

   An act to add Sections  84311 and 84312  
84222.1 and 84222.2  to, and to repeal  Section
  Sections 54964.5 and  54964.6 of, the Government
Code, relating to the Political Reform Act of 1974.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2318, as amended, Low. Political Reform Act of 1974: Fair
Political Practices Commission: enforcement: use of public resources.

   (1) Existing law prohibits a nonprofit organization or an officer,
employee, or agent of a nonprofit organization from using, or
permitting another to use, public resources received from a local
agency for any campaign activity not authorized by law. Existing law
authorizes the Attorney General, any district attorney, or any city
attorney of a city with a population over 750,000 to bring a civil
action to recover a civil penalty against any person who
intentionally or negligently violates that prohibition.
   The Political Reform Act of 1974 regulates contributions to public
officials and also regulates conflicts of interests on the part of
public officials while carrying out their respective duties. The act
establishes the Fair Political Practices Commission as the agency
responsible for administering and enforcing the act. The act
authorizes the Commission to seek and impose administrative and civil
penalties against persons who violate the act, as prescribed. The
act makes a willful violation of its provisions a misdemeanor subject
to specified penalties.
   This bill would  restate   recast and
relocate  the prohibition on the use of public resources
described above within the Political Reform Act of 1974 and would
also authorize the  Fair Political Practices 
Commission  , in addition to the Attorney General or district
attorney,  to bring a civil action to recover the civil penalty,
as described above. The bill would authorize the Commission to
investigate, hold an administrative hearing on, and issue an order
against a violator of the prohibition on the use of public resources
for campaign activity, instead of commencing a civil action.
   (2) Existing law requires qualifying individuals and political
organizations to report specified information, including, but not
limited to, political contributions, in statements filed with the
 Fair Political Practices  Commission. Existing law
requires a reporting nonprofit organization that engages in campaign
activity to deposit into a separate bank account all specific
 source or  sources of funds it receives and to pay
for all campaign activity from that separate bank account. Existing
law defines "reporting nonprofit organization" as a nonprofit
organization for which public resources from one or more local
agencies account for more than 20% of the nonprofit organization's
annual gross revenue, as specified  , and defines "specific
source or sources of funds" as any funds received by the reporting
nonprofit organization that have been designated for campaign
activity use or any other funds received by the nonprofit
organization that are used for campaign activity  .
   Existing law requires a reporting nonprofit organization that
engages in campaign activity of specified amounts or more to
periodically disclose to the Franchise Tax Board, and post on its
Internet Web site in a certain manner, the identity and amount of
each specific source or sources of funds it receives for campaign
activity, a description of the campaign activity, and the identity
and amount of payments the organization makes from the required
separate bank account. Existing law authorizes, and in some instances
requires, the Franchise Tax Board to audit a reporting nonprofit
organization, requires the board to issue a written audit report, and
requires the board to transmit the audit report to the Attorney
General and the district attorney for the county in which the
reporting nonprofit organization is domiciled. Existing law
authorizes the Attorney General or the district attorney for the
county in which the reporting nonprofit organization is domiciled to
impose a monetary civil penalty of up to $10,000 against a reporting
nonprofit organization for misusing public resources received from a
local agency, as described in (1), for failing to maintain the
separate bank account, or for not complying with the disclosure
requirements described above.
   This bill would recast and relocate those provisions within the
Political Reform Act of 1974, thereby making the  Fair
Political Practices  Commission responsible for their
administration and enforcement, except as specified. The bill would
change the term "reporting nonprofit organization" to "publicly
funded  multipurpose   nonprofit 
organization," defined as a  multipurpose  
nonprofit  organization for which public resources from one or
more local agencies account for more than 20% of the 
multipurpose   nonprofit  organization's annual
gross revenue, as specified.  The bill would redefine
"specific source or sources of funds" as payments or funds that meet
specified criteria received by the publicly funded multipurpose
organization from donors that are for, or may be used for,
contributions or expenditures, as specified, or any other funds
received by the publicly funded multipurpose organization within a
2-year period that are used for campaign activity.  
This bill would require certain publicly f   unded nonprofit
organization   s to register as recipient committees and
file the campaign statements that those committees are required to
file under the act.  This bill would shift the Franchise Tax
Board's authority and duties under these provisions to the 
Fair Political Practices  Commission and would authorize the
Commission, in addition to the Attorney General or the district
attorney, to impose the monetary civil penalty of up to $10,000
against a publicly funded  multipurpose  
nonprofit  organization.
   By expanding the scope of an existing 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 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.
State-mandated local program: yes.


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

   SECTION 1.    Section 54964.5 of the  
Government Code   is repealed.  
   54964.5.  (a) A nonprofit organization or an officer, employee, or
agent of a nonprofit organization shall not use, or permit another
to use, public resources, received from any local agency for any
campaign activity not authorized by law.
   (b) As used in this section and Section 54964.6, the following
terms shall have the following meanings:
   (1) "Ballot measure" means a state or local initiative,
referendum, or recall measure certified to appear on a regular or
special election ballot or other measure submitted to the voters by
the Legislature or the governing body of a local agency at a regular
or special election.
   (2) "Campaign activity" means a payment that is used for
communications that expressly advocate for or against the
qualification of a clearly identified ballot measure, the approval or
rejection of a clearly identified ballot measure, or the election or
defeat of a clearly identified candidate by the voters, or that
constitutes a campaign contribution.
   (A) "Campaign activity" does not include the costs of adopting a
position or a resolution supporting or opposing a clearly identified
ballot measure or candidate, including, but not limited to, posting
the position or resolution on the nonprofit organization's Internet
Web site, communicating the position or resolution to members of the
nonprofit organization, or issuing a press statement.
   (B) "Campaign activity" does not include incidental or minimal use
of public resources.
   (C) "Campaign activity" does not include incidental costs related
to the establishment or administration of a sponsored committee as
defined in Section 82048.7. A reasonable accounting method may be
used to determine the use of nonpublic resources to pay for that
cost. "Establishment and administration" means the cost of office
space, telephones, salaries, utilities, supplies, legal and
accounting fees, and other expenses incurred in establishing and
operating a sponsored committee.
   (3) "Candidate" means an individual who has qualified to have his
or her name listed on the ballot, or who has qualified to have
write-in votes on his or her behalf counted by elections officials,
for nomination or election to an elective office at any regular or
special primary or general election, and includes any officeholder
who is the subject of a recall election.
   (4) "Expenditure" means a payment used for communications that
expressly advocate the approval or rejection of a clearly identified
ballot measure, or the election or defeat of a clearly identified
candidate, by the voters or that constitutes a campaign contribution.

   (5) "Local agency" shall have the same meaning as that term is
defined in paragraph (4) of subdivision (b) of Section 54964 and
shall also include a public entity created pursuant to the Joint
Exercise of Powers Act (Chapter 5 (commencing with Section 6500) of
Division 7 of Title 1) by one or more entities described in Section
54964.
   (6) "Nonprofit organization" means any entity incorporated under
the Nonprofit Corporation Law (Division 2 (commencing with Section
5000) of Title 1 of the Corporations Code) or a nonprofit
organization that qualifies for exempt status under Section 115 or
501(c) of the Internal Revenue Code, provided, however, that
"nonprofit organization" does not include any nonprofit organization
that qualifies for tax-exempt status under Section 501(c)(3) of the
Internal Revenue Code.
   (7) "Public resources" means the following:
   (A) Any property or asset owned by a local agency, including, but
not limited to, cash, land, buildings, facilities, funds, equipment,
supplies, telephones, computers, vehicles, travel, and local
government compensated work time that is provided to a nonprofit
organization, except funds received in exchange for consideration for
goods or services.
   (B) Funds received by a nonprofit organization which have been
generated from any activities related to conduit bond financing by
those entities subject to the conduit financing and transparency and
accountability provisions of Chapter 10.7 (commencing with Section
5870) of Division 6 of Title 1, whether or not those funds are
received by the nonprofit in exchange for consideration for goods or
services.
   (8) "Use" means a use of public resources from one or more local
agencies that is substantial enough to result in a gain or advantage
to the user or a loss to any local agency for which any monetary
value may be estimated.
   (c) This section does not prohibit the use of public resources for
providing information to the public about the possible effects of
any ballot measure on the activities, operations, or policies of the
state or a local agency, provided that the informational activities
meet both of the following conditions:
   (1) The informational activities are not otherwise prohibited by
the California Constitution or the laws of this state.
   (2) The information provided constitutes an accurate, fair, and
impartial presentation of relevant facts to aid the electorate in
reaching an informed judgment regarding the ballot measure.
   (d) (1) Any person who intentionally or negligently violates this
section is liable for a civil penalty not to exceed one thousand
dollars ($1,000) for each day on which a violation occurs, plus three
times the value of the unlawful use of public resources. The penalty
shall be assessed and recovered in a civil action brought in the
name of the people of the State of California by the Attorney General
or by any district attorney or any city attorney of a city having a
population in excess of 750,000. If two or more persons are
responsible for any violation, they shall be jointly and severally
liable for the penalty. If the action is brought by the Attorney
General, the moneys recovered shall be paid into the General Fund. If
the action is brought by a district attorney, the moneys recovered
shall be paid to the treasurer of the county in which the judgment
was entered. If the action is brought by a city attorney, the moneys
recovered shall be paid to the treasury of that city.
   (2) A civil action alleging a violation of this section shall not
be commenced more than four years after the date of the alleged
violation. 
   SECTION 1.   SEC. 2.   Section 54964.6
of the Government Code is repealed. 
  SEC. 2.    Section 84311 is added to the
Government Code, to read:
   84311.  (a) A nonprofit organization or an officer, employee, or
agent of a nonprofit organization shall not use, or permit another to
use, public resources, received from any local agency for any
campaign activity not authorized by law.
   (b) As used in this section and Section 84312, the following terms
shall have the following meanings:
   (1) "Ballot measure" means a state or local initiative,
referendum, or recall measure certified to appear on a regular or
special election ballot or other measure submitted to the voters by
the Legislature or the governing body at a regular or special
election.
   (2) (A) "Campaign activity" means a payment that is used for
communications that expressly advocate for or against the
qualification of a clearly identified ballot measure, the approval or
rejection of a clearly identified ballot measure, or the election or
defeat of a clearly identified candidate by the voters, or that
constitutes a campaign contribution.
   (B) "Campaign activity" does not include any of the following:
   (i) The costs of adopting a position or resolution supporting or
opposing a clearly identified ballot measure or candidate, including,
but not limited to, posting the position or resolution on the
nonprofit organizations' Internet Web site, communicating the
position or resolution to members of the nonprofit organization, or
issuing a press statement.
   (ii) Incidental or minimal use of public resources.
   (iii) Incidental costs related to the establishment or
administration of a sponsored committee, as defined in Section
82048.7. A reasonable accounting method may be used to determine the
use of nonpublic resources to pay for that cost. For purposes of this
subparagraph, "establishment and administration" means the cost of
office space, telephones, salaries, utilities, supplies, legal and
accounting fees, and other expenses incurred in establishing and
operating a sponsored committee.
   (3) "Candidate" means an individual who has qualified to have his
or her name listed on the ballot, or who has qualified to have
write-in votes on his or her behalf counted by elections officials,
for nomination or election to an elective office at any regular or
special primary or general election, and includes any officeholder
who is the subject of a recall election.
   (4) "Expenditure" means a payment used for communications that
expressly advocate the approval or rejection of a clearly identified
ballot measure, or the election or defeat of a clearly identified
candidate, by the voters, or that constitutes a campaign
contribution.
   (5) "Local agency" has the same meaning as that term is defined in
paragraph (4) of subdivision (b) of Section 54964 and shall also
include a public entity created pursuant to the Joint Exercise of
Powers Act (Chapter 5 (commencing with Section 6500) of Division 7 of
Title 1) by one or more entities described in Section 54964.
   (6) "Nonprofit organization" means an entity incorporated under
the Nonprofit Corporation Law (Division 2 (commencing with Section
5000) of Title 1 of the Corporations Code) or a nonprofit
organization that qualifies for exempt status under Section 115 of
501(c) of the federal Internal Revenue Code. "Nonprofit organization"
does not include a nonprofit organization that qualifies for
tax-exempt status under Section 501(c)(3) of the federal Internal
Revenue Code.
   (7) "Public resources" means either of the following:
   (A) Any property or asset owned by a local agency, including, but
not limited to, cash, land, buildings, facilities, funds, equipment,
supplies, telephones, computers, vehicles, travel, and local
government compensated work time that is provided to a nonprofit
organization, except funds received in exchange for consideration for
goods or services.
   (B) Funds received by a nonprofit organization that have been
generated from any activities related to conduit bond financing by
those entities subject to the conduit financing and transparency and
accountability provision of Chapter 10.7 (commencing with Section
5870) of Division 6 of Title 1, whether or not those funds are
received by the nonprofit organization in exchange for consideration
for goods or services.
   (8) "Use" means a use of public resources from one or more local
agencies that is substantial enough to result in a gain or advantage
to the user or a loss to a local agency from which a monetary value
may be estimated.
   (c) This section does not prohibit the use of public resources for
providing information to the public about the possible effects of a
ballot measure on the activities, operations, or policies of the
state or a local agency if the informational activities meet both of
the following conditions:
   (1) The informational activities are not otherwise prohibited by
the California Constitution or the laws of this state.
   (2) The information provided constitutes an accurate, fair, and
impartial presentation of relevant facts to aid the electorate in
reaching an informed judgment regarding the ballot measure.
   (d) (1) A person who intentionally or negligently violates this
section is liable for a civil penalty not to exceed one thousand
dollars ($1,000) for each day on which a violation occurs, plus three
times the value of the unlawful use of public resources. The penalty
shall be assessed and recovered in a civil action brought in the
name of the people by the Commission. If two or more persons are
responsible for a violation, they shall be jointly and severally
liable for the penalty. Any moneys recovered by the Commission shall
be paid into the General Fund. Only one judgment on the merits with
respect to a violation may be obtained under this paragraph or
paragraph (1) of subdivision (d) of Section 54964.5.
   (2) A civil action alleging a violation of this section shall not
be commenced more than four years after the date of the alleged
violation.
   (3) The Commission has jurisdiction to commence an investigation
for a violation of this section in the manner described in Section
83115. A civil action shall not be filed or prosecuted under
paragraph (1) with regard to a person for a violation of this section
after the Commission has issued an order in the manner described in
Section 83116 against that person for the same violation. 

  SEC. 3.    Section 84312 is added to the
Government Code, to read:
   84312.  (a) A publicly funded multipurpose organization that
engages in campaign activity, either directly or through the control
of another entity, shall deposit into a separate bank account all
specific source or sources of funds received and shall pay for all
campaign activity from that separate bank account.
   (b) (1) As used in this section, the following terms have the
following meanings:
   (A) "Publicly funded multipurpose organization" means a
multipurpose organization, as defined in subdivision (a) of Section
84222, for which public resources, as defined in paragraph (7) of
subdivision (b) of Section 84311, from one or more local agencies
account for more than 20 percent of the multipurpose organization's
annual gross revenue in the current fiscal year or either of the
previous two fiscal years. "Publicly funded multipurpose organization"
does not include a multipurpose organization that sponsors a
committee, as defined in Section 82048.7, if the multipurpose
organization reports all specific sources of funds received and all
campaign activities on campaign disclosure statements filed by the
sponsored committee, and the multipurpose organization makes no
payments from its general treasury to the sponsored committee other
than payments for contributions by donors earmarked for the sponsored
committee. For purposes of this subparagraph, "earmarked" means a
payment by a donor to a multipurpose organization subject to a
condition, agreement, or understanding that the payment will be used
for making contributions or independent expenditures by the sponsored
committee of the sponsoring multipurpose organization.
   (B) "Specific source or sources of funds" means any of the
following:
   (i) Payments the publicly funded multipurpose organization
solicits and receives from donors in an amount equal to or greater
than the amount identified in subdivision (a) of Section 82013 for
purposes of making contributions or expenditures.
   (ii) Payments the publicly funded multipurpose organization
receives from donors in an amount equal to or greater than the amount
identified in subdivision (a) of Section 82013 subject to a
condition, agreement, or understanding with the donor that all or a
portion of the payments may be used for making contributions or
expenditures.
   (iii) Existing funds of the publicly funded multipurpose
organization from a donor and a subsequent agreement or understanding
is reached with the donor that all or a portion of the funds may be
used for making contributions or expenditures in an amount equal to
or greater than the amount identified in subdivision (a) of Section
82013. The date of the subsequent agreement or understanding is
deemed to be the date of receipt of the payment.
   (iv) Any other funds received by a publicly funded multipurpose
organization within a two-year period that are used for campaign
activity.
   (2) Except as otherwise defined in this section, the definitions
in subdivision (b) of Section 84311 apply to this section.
   (c) Thirty days after the end of each quarter, a publicly funded
multipurpose organization that engages in campaign activity of fifty
thousand dollars ($50,000) or more related to statewide candidates or
ballot measures or engages in campaign activity of two thousand five
hundred dollars ($2,500) or more related to local candidates or
ballot measures, either directly or through the control of another
entity, at any point during that quarter shall disclose the following
information for that quarter:
   (1) The name and amount of each specific source or sources of
funds used for campaign activity if the aggregate amount of funds
received since January 1 of the most recent odd year by the publicly
funded multipurpose organization from that specific source or sources
of funds is at least one thousand dollars ($1,000). The publicly
funded multipurpose organization shall report all sources of funds
that satisfy the definition of subparagraph (B) of paragraph (1) of
subdivision (b) and for the balance of its campaign activities paid
from the separate bank account. The publicly funded multipurpose
organization shall report sources of funds based on a last in, first
out accounting method. For purposes of this section, "last in, first
out accounting method" means an accounting method by which
contributions and expenditures are attributed to the multipurpose
organization's contributors in reverse chronological order beginning
with the most recent of its contributors or, if there are any prior
contributions or expenditures, beginning with the most recent
contributor for which unattributed contributions remain.
   (2) The name of the payee and amount of all payments aggregating
two hundred fifty dollars ($250) or more made from the separate bank
account required by subdivision (a).
   (3) A description of each campaign activity.
   (d) By January 31 following the end of each even-numbered year, a
publicly funded multipurpose organization that engages in campaign
activity of one hundred thousand dollars ($100,000) or more related
to statewide candidates or ballot measures or engages in campaign
activity of ten thousand dollars ($10,000) or more related to local
candidates or ballot measures, either directly or through the control
or another entity, at any point during that even year or the prior
odd year, shall disclose the following information for those two
calendar years:
   (1) The name and amount of any specific source or sources of funds
used for campaign activity if the aggregate amount of funds received
since January 1 of the most recent odd year by the publicly funded
multipurpose organization from that specific source or sources of
funds is at least one thousand dollars ($1,000). The publicly funded
multipurpose organization shall report all sources of funds that
satisfy the definition of subparagraph (B) of paragraph (1) of
subdivision (b) and for the balance of its campaign activities paid
from the separate bank account. The publicly funded multipurpose
organization shall report sources of funds based on a last in, first
out accounting method.
   (2) The name of the payee and amount of all payments aggregating
two hundred fifty dollars ($250) or more made from the separate bank
account required by subdivision (a).
   (3) A description of each campaign activity.
   (e) Each publicly funded multipurpose organization that engages in
campaign activity, either directly or through the control of another
entity, shall provide to the Commission, and display on the
organization's Internet Web site, the information it is required to
disclose under this section. The information shall be clearly
described and identified on a separate Internet Web page that is
linked from the homepage of the organization's Internet Web site. The
link to this Internet Web page from the homepage shall be as visible
as all similar links.
   (f) The Commission may require an audit of a publicly funded
multipurpose organization that is required to provide records to the
Commission pursuant to this section. The Commission shall require an
audit of any publicly funded multipurpose organization that engages
in campaign activity in excess of five hundred thousand dollars
($500,000) in a calendar year. The publicly funded multipurpose
organization shall provide records to the Commission to substantiate
the information required to by disclosed by this section. The
Commission shall determine if the organization complied with the
requirements of Section 84311 and this section, issue a written audit
report, and transmit the written audit report to the Attorney
General and the district attorney for the county in which the
organization is domiciled.
   (g) If the Commission determines at the conclusion of an audit
that a publicly funded multipurpose organization has violated Section
84311 or this section, the Commission, the Attorney General, or the
district attorney for the county in which the organization is
domiciled may impose a civil fine upon the organization in an amount
up to ten thousand dollars ($10,000) for each violation. 
   SEC. 3.    Section 84222.1 is added to the  
Government Code   , to read:  
   84222.1.  (a) A nonprofit organization or an officer, employee, or
agent of a nonprofit organization shall not use, or permit another
to use, public resources received from any local agency to make a
contribution or expenditure not authorized by law.
   (b) As used in this section and Section 84222.2, the following
terms have the following meanings:
   (1) "Local agency" has the same meaning as that term is defined in
paragraph (4) of subdivision (b) of Section 54964 and shall also
include a public entity created pursuant to the Joint Exercise of
Powers Act (Chapter 5 (commencing with Section 6500) of Division 7 of
Title 1) by one or more entities described in Section 54964.
   (2) "Nonprofit organization" means an entity incorporated under
the Nonprofit Corporation Law (Division 2 (commencing with Section
5000) of Title 1 of the Corporations Code) or a nonprofit
organization that qualifies for exempt status under Section 115 or
501(c) of the federal Internal Revenue Code. "Nonprofit organization"
does not include a nonprofit organization that qualifies for
tax-exempt status under Section 501(c)(3) of the federal Internal
Revenue Code.
   (3) "Public resources" means either of the following:
   (A) Any property or asset owned by a local agency, including, but
not limited to, cash, land, buildings, facilities, funds, equipment,
supplies, telephones, computers, vehicles, travel, and local
government compensated work time that is provided to a nonprofit
organization, except funds received in exchange for consideration for
goods or services.
   (B) Funds received by a nonprofit organization that have been
generated from any activities related to conduit bond financing by
those entities subject to the conduit financing and transparency and
accountability provisions of Chapter 10.7 (commencing with Section
5870) of Division 6 of Title 1, whether or not those funds are
received by the nonprofit organization in exchange for consideration
for goods or services.
   (4) "Publicly funded nonprofit organization" means a nonprofit
organization for which public resources from one or more local
agencies account for more than 20 percent of the nonprofit
organization's annual gross revenue in the current fiscal year or
either of the previous two
  fiscal years.
   (5) "Use" means a use of public resources from one or more local
agencies that is substantial enough to result in a gain or advantage
to the user or a loss to a local agency from which a monetary value
may be estimated.
   (c) This section does not prohibit the use of public resources for
expenditures authorized by law, including:
   (1) The costs of adopting a position or resolution supporting or
opposing a clearly identified ballot measure or candidate, including,
but not limited to, posting the position or resolution on the
nonprofit organization's Internet Web site, communicating the
position or resolution to members of the nonprofit organization, or
issuing a press statement.
   (2) Incidental or minimal use of public resources.
   (3) Incidental costs related to the establishment or
administration of a sponsored committee, as defined in Section
82048.7. A reasonable accounting method may be used to determine the
use of nonpublic resources to pay for that cost. For purposes of this
subparagraph, "establishment and administration" means the cost of
office space, telephones, salaries, utilities, supplies, legal and
accounting fees, and other expenses incurred in establishing and
operating a sponsored committee.
   (4) Providing information to the public about the possible effects
of a ballot measure on the activities, operations, or policies of
the state or a local agency if the informational activities meet both
of the following conditions:
   (A) The informational activities are not otherwise prohibited by
the California Constitution or the laws of this state.
   (B) The information provided constitutes an accurate, fair, and
impartial presentation of relevant facts to aid the electorate in
reaching an informed judgment regarding the ballot measure.
   (d) (1) A person who intentionally or negligently violates this
section is liable for a civil penalty not to exceed one thousand
dollars ($1,000) for each day on which a violation occurs, plus three
times the value of the unlawful use of public resources. The penalty
shall be assessed and recovered in a civil action brought in the
name of the people by the Attorney General, the district attorney for
the county in which the organization is domiciled, or the
Commission. If two or more persons are responsible for a violation,
they shall be jointly and severally liable for the penalty. Any
moneys recovered by the Commission shall be paid into the General
Fund.
   (2) A civil action alleging a violation of this section shall not
be commenced more than four years after the date of the alleged
violation.
   (3) The Commission has jurisdiction to commence an investigation
for a violation of this section in the manner described in Section
83115 and issue an order under Section 83116. A civil action shall
not be filed or prosecuted under paragraph (1) with regard to a
person for a violation of this section after the Commission has
issued an order in the manner described in Section 83116 against that
person for the same violation. 
   SEC. 4.    Section 84222.2 is added to the 
Government Code   , to read:  
   84222.2.  (a) A publicly funded nonprofit organization that makes
contributions or expenditures, either directly or through the control
of another entity, shall establish and deposit into a separate bank
account all funds that will be used to make contributions and
expenditures, and those contributions and expenditures shall come
from that separate bank account.
   (b) In addition to subdivisions (b) and (c) of Section 84222, a
publicly funded nonprofit organization is a recipient committee
within the meaning of subdivision (a) of Section 82013 if any of the
following occur:
   (1) It makes contributions or expenditures totaling fifty thousand
dollars ($50,000) or more related to statewide candidates or ballot
measures or makes contributions or expenditures totaling two thousand
five hundred dollars ($2,500) or more related to local candidates or
ballot measures, either directly or through the control of another
entity, during the prior quarter.
   (2) By January 31 of each odd-numbered year, it makes
contributions or expenditures totaling one hundred thousand dollars
($100,000) or more related to statewide candidates or ballot measures
or makes contributions or expenditures totaling ten thousand dollars
($10,000) or more related to local candidates or ballot measures,
either directly or through the control of another entity, during the
previous two years.
   (c) If a publicly funded nonprofit organization qualifies as a
recipient committee pursuant to subdivision (b), it shall comply with
the registration and reporting requirements of Section 84222.
   (d) Each publicly funded nonprofit organization that makes
contributions or expenditures, either directly or through the control
of another entity, shall provide to the Commission, and display on
the organization's Internet Web site, the information it is required
to disclose under this section. The information shall be clearly
described and identified on a separate Internet Web page that is
linked from the homepage of the organization's Internet Web site. The
link to this Internet Web page from the homepage shall be as visible
as all similar links.
   (e) The Commission may require an audit of a publicly funded
nonprofit organization that is required to provide records to the
Commission pursuant to this section. The Commission shall require an
audit of any publicly funded nonprofit organization that makes
contributions or expenditures in excess of five hundred thousand
dollars ($500,000) in a calendar year. The publicly funded nonprofit
organization shall provide records to the Commission to substantiate
the information required to be disclosed by this section.
   (f) If the Commission determines at the conclusion of an audit
that a publicly funded nonprofit organization has violated this
section, the Commission, the Attorney General, or the district
attorney for the county in which the organization is domiciled may
impose a civil fine upon the organization in an amount up to ten
thousand dollars ($10,000) for each violation.
   (g) The definitions in subdivision (b) of Section 84222.1 apply to
this section. 
   SEC. 4.   SEC. 5.   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. 5.   SEC. 6.   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.