Bill Text: CA SB1404 | 2023-2024 | Regular Session | Amended


Bill Title: Political Reform Act of 1974: audits.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed) 2024-06-27 - Read second time and amended. Re-referred to Com. on APPR. [SB1404 Detail]

Download: California-2023-SB1404-Amended.html

Amended  IN  Assembly  June 27, 2024
Amended  IN  Assembly  June 18, 2024
Amended  IN  Senate  April 08, 2024
Amended  IN  Senate  April 03, 2024
Amended  IN  Senate  March 21, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill
No. 1404


Introduced by Senator Glazer

February 16, 2024


An act to amend amend, repeal, and add Sections 84613, 86102, 90000, 90001, and 90006 of, and to add and repeal Sections 84614 and 90010 to, of, the Government Code, relating to the Political Reform Act of 1974, and making an appropriation therefor.


LEGISLATIVE COUNSEL'S DIGEST


SB 1404, as amended, Glazer. Political Reform Act of 1974: audits.
The Political Reform Act of 1974 requires the Franchise Tax Board to conduct audits and field investigations regarding the reports filed by lobbyists. Existing law requires 25% of lobbyist employers and lobbying firms to be subject to a random audit and investigation every 2 years.
This bill would revise the provisions above relating to audits and field investigations. Until January 1, 2033, this bill would transfer the responsibility for conducting audits and field investigations of lobbying reports to the Fair Political Practices Commission. The During this period, the bill would require the Secretary of State to impose an additional fee, to be established by the commission, not to exceed $500 per year, to lobbying firms and lobbyist employers subject to audit to offset costs associated with conducting audits and field investigations. This fee would be deposited in a new fund that the bill would establish, the Field Audits and Investigations Fund, which would be continuously appropriated to the commission for these purposes. The From January 1, 2027 through January 1, 2033, the bill would require 60 lobbying firms and lobbyist employers who employ one or more lobbyists to be selected for audit, as specified. Additionally, this bill would require the commission to adopt regulations or policies that would ensure the operational independence of the commission’s audit personnel from the commission’s enforcement operations. Audits conducted by the commission would be required to be posted on the commission’s internet website for 10 years following the conclusion of the audit and the commission would be required to annually report to the Legislature on the number and types of audits completed by the commission.
By creating the Field Audits and Investigations Fund, which would be continuously appropriated to the commission to offset costs associated with the above audits and investigations, the bill would make an appropriation.
Existing law makes a knowing or willful violation of the Political Reform Act of 1974 a misdemeanor and subjects offenders to criminal penalties. 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 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: YES   Fiscal Committee: YES   Local Program: YES  

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


SECTION 1.

 Section 84613 of the Government Code is amended to read:

84613.
 (a) The Political Disclosure, Accountability, Transparency, and Access Fund is hereby established in the State Treasury. Moneys collected pursuant to Section 84101.5 and one-half of the moneys collected pursuant to subdivision (a) of Section 86102 shall be deposited in the Political Disclosure, Accountability, Transparency, and Access Fund.
(b) (1) Moneys deposited in the Political Disclosure, Accountability, Transparency, and Access Fund are subject to appropriation by the Legislature and shall be expended for the maintenance, repair, and improvement of the online or electronic disclosure program implemented by the Secretary of State pursuant to this chapter.
(2) In addition to paragraph (1), the Secretary of State may also use moneys deposited in the Political Disclosure, Accountability, Transparency, and Access Fund for purposes of implementing Chapter 506 of the Statutes of 2012.
(c) Any expenditure of moneys from the Political Disclosure, Accountability, Transparency, and Access Fund for the purposes described in paragraph (1) of subdivision (b) is subject to the project approval and oversight process established by the California Technology Agency pursuant to Section 11546.
(d) This section shall remain in effect only until January 1, 2033, and as of that date is repealed.

SEC. 2.

 Section 84613 is added to the Government Code, to read:

84613.
 (a) The Political Disclosure, Accountability, Transparency, and Access Fund is hereby established in the State Treasury. Moneys collected pursuant to Section 84101.5 and one-half of the moneys collected pursuant to Section 86102 shall be deposited in the Political Disclosure, Accountability, Transparency, and Access Fund.
(b) (1) Moneys deposited in the Political Disclosure, Accountability, Transparency, and Access Fund are subject to appropriation by the Legislature and shall be expended for the maintenance, repair, and improvement of the online or electronic disclosure program implemented by the Secretary of State pursuant to this chapter.
(2) In addition to paragraph (1), the Secretary of State may also use moneys deposited in the Political Disclosure, Accountability, Transparency, and Access Fund for purposes of implementing the act that added this section.
(c) Any expenditure of moneys from the Political Disclosure, Accountability, Transparency, and Access Fund for the purposes described in paragraph (1) of subdivision (b) is subject to the project approval and oversight process established by the California Technology Agency pursuant to Section 11546.
(d) This section shall become operative on January 1, 2033.

SEC. 2.SEC. 3.

 Section 84614 is added to the Government Code, to read:

84614.
  (a) The Field Audits and Investigations Fund is hereby established in the State Treasury. Moneys collected pursuant to subdivision (b) of Section 86102 shall be deposited in the Field Audits and Investigations Fund.
(b) Notwithstanding Section 13340, moneys deposited in the Field Audits and Investigations Fund shall be continuously appropriated to the Commission to conduct the audits and field investigations required by subdivision (b) of Section 90006.
(c) This section shall remain in effect only until January 1, 2033, and as of that date is repealed.

SEC. 3.SEC. 4.

 Section 86102 of the Government Code is amended to read:

86102.
 Except as specified in paragraph (2) of subdivision (b), the The Secretary of State shall charge each lobbying firm and lobbyist employer required to file a registration statement under this chapter both of the following fees:
(a) A fee of fifty dollars ($50) per year for each lobbyist required to be listed on its registration statement. Twenty-five dollars ($25) of this fee shall be deposited in the Political Disclosure, Accountability, Transparency, and Access Fund established pursuant to Section 84613, and twenty-five dollars ($25) of this fee shall be deposited in the General Fund.
(b) A fee established by the Commission, not exceeding five hundred dollars ($500) per year, to offset costs associated with conducting the required audits and field investigations pursuant to paragraph (2) of subdivision (b) of Section 90006 for each lobbyist required to be listed on its registration statement. Moneys collected from this fee shall be deposited in the Field Audits and Investigations Fund established pursuant to Section 84614.
(c) This section shall remain in effect only until January 1, 2033, and as of that date is repealed.

SEC. 5.

 Section 86102 is added to the Government Code, to read:

86102.
 (a) The Secretary of State shall charge each lobbying firm and lobbyist employer required to file a registration statement under this chapter a fee of fifty dollars ($50) per year for each lobbyist required to be listed on its registration statement.
(b) One-half of the moneys collected pursuant to this section shall be deposited in the Political Disclosure, Accountability, Transparency, and Access Fund, and the other one-half of the moneys shall be deposited in the General Fund.
(c) This section shall become operative on January 1, 2033.

SEC. 4.SEC. 6.

 Section 90000 of the Government Code is amended to read:

90000.
 Except as provided in Section 90006, the Franchise Tax Board shall make audits and field investigations with respect to the following:
(a) Reports and statements filed with the Secretary of State under Chapter 4 (commencing with Section 84100) and Chapter 5 (commencing with Section 85100).
(b) Local candidates and their controlled committees selected for audit pursuant to subdivision (i) of Section 90001.
(c) Reports and statements filed with the Secretary of State under Chapter 6 (commencing with Section 86100) that are selected for audit audit, up to and including the selection in February 2025, pursuant to subdivision (j) of Section 90001 in the years up to and including 2024. 90001.
(d) This section shall remain in effect only until January 1, 2033, and as of that date is repealed.

SEC. 7.

 Section 90000 is added to the Government Code, to read:

90000.
 Except as provided in Section 90006, the Franchise Tax Board shall make audits and field investigations with respect to the following:
(a) Reports and statements filed with the Secretary of State under Chapter 4 (commencing with Section 84100), Chapter 5 (commencing with Section 85100), and Chapter 6 (commencing with Section 86100).
(b) Local candidates and their controlled committees selected for audit pursuant to subdivision (i) of Section 90001.
(c) This section shall become operative on January 1, 2033.

SEC. 5.Section 90001 of the Government Code is amended to read:
90001.

Audits and investigations conducted pursuant to Section 90000 and subdivision (b) of Section 90006 shall be made with respect to the reports and statements of:

(a)Sixty lobbying firms and lobbyist employers who employ one or more lobbyists, who shall be selected for audit pursuant to the process described in subdivision (j).

(1)Ten of the sixty audits shall be of lobbying firms or lobbyist employers that employ only placement agents.

(2)At least twenty-five of the sixty audits shall be of lobbying firms or lobbyist employers with total reported payments that meet or exceed a monetary threshold set by the Commission. The Commission shall base this threshold on an approximation of the total reported payments of the top 100 lobbying firms and lobbyist employers.

(3)When a lobbying firm or lobbyist employer is audited, the individual lobbyists who are employed by the lobbying firm or the lobbyist employer shall also be audited.

(b)Each statewide, Supreme Court, court of appeal, or Board of Equalization candidate in a direct primary or general election for whom it is determined that twenty-five thousand dollars ($25,000) or more in contributions have been raised or twenty-five thousand dollars ($25,000) or more in expenditures have been made, whether by the candidate or by a committee or committees controlled by the candidate or whose participation in the direct primary or general election is primarily in support of the candidate’s candidacy. Each statewide candidate whose contributions and expenditures are less than twenty-five thousand dollars ($25,000) shall be subject to an audit on a random basis of 10 percent of the number of such candidates.

(c)Each candidate for the Legislature or superior court judge in a direct primary or general election shall be subject to audit by random selection if it is determined that fifteen thousand dollars ($15,000) or more in contributions have been received or fifteen thousand dollars ($15,000) or more in expenditures have been made, whether by the candidate or by a committee or committees controlled by the candidate or primarily supporting the candidate’s candidacy. Random selection shall be made of 25 percent of the Senate districts, 25 percent of the Assembly districts, and 25 percent of the judicial offices contested in an election year.

(d)Each candidate for the Legislature in a special primary or special runoff election for whom it is determined that fifteen thousand dollars ($15,000) or more in contributions have been raised or fifteen thousand dollars ($15,000) or more in expenditures have been made, whether by the candidate or by a committee or committees controlled by the candidate or primarily supporting the candidate’s candidacy.

(e)Each controlled committee of any candidate who is being audited pursuant to subdivision (b), (c), or (d).

(f)Each committee, other than a committee specified in subdivision (c) of Section 82013, primarily supporting or opposing a candidate who is being audited pursuant to subdivision (b), (c), or (d) if it is determined that the committee has expended more than ten thousand dollars ($10,000).

(g)Each committee, other than a committee specified in subdivision (c) of Section 82013, whose participation is primarily in support of or in opposition to a state measure or state measures if it is determined that the committee has expended more than ten thousand dollars ($10,000) on such measure or measures.

(h)Each committee, other than a committee defined in subdivision (c) of Section 82013, a controlled committee or a committee primarily supporting or opposing a state candidate or measure, if it is determined that the committee has raised or expended more than ten thousand dollars ($10,000) supporting or opposing state candidates or state measures during any calendar year, except that if the commission determines from an audit report that a committee is in substantial compliance with the provisions of the act, the committee thereafter shall be subject to an audit on a random basis with each such committee having a 25-percent chance of being audited.

(i)(1)With respect to local candidates and their controlled committees, the commission shall promulgate regulations which provide a method of selection for these audits.

(2)With respect to candidates for the Board of Administration of the Public Employees’ Retirement System, the commission shall promulgate regulations that provide a method for selection of these audits. The Public Employees’ Retirement System shall reimburse the commission for all reasonable expenses incurred pursuant to this section.

(j)In accordance with subdivisions (a), (b), (c), and (h), the Commission shall select by lot the persons or districts to be audited on a random basis. For campaign audits the selection shall be made in public after the last date for filing the first report or statement following the general or special election for which the candidate ran, or following the election at which the measure was adopted or defeated. For lobbying firm and lobbyist employer audits, the selection shall be made in public in February of odd-numbered years.

SEC. 8.

 Section 90001 of the Government Code is amended to read:

90001.
 Audits and investigations shall be made pursuant to Section 90000 with respect to the reports and statements of:
(a) Each lobbying firm and each lobbyist employer who employs one or more lobbyists shall be subject to an audit on a random basis with these lobbying firms or lobbyist employers having a 25-percent chance of being audited. When a lobbying firm or lobbyist employer is audited, the individual lobbyists who are employed by the lobbying firm or the lobbyist employer shall also be audited.
(b) Each statewide, Supreme Court, court of appeal, or Board of Equalization candidate in a direct primary or general election for whom it is determined that twenty-five thousand dollars ($25,000) or more in contributions have been raised or twenty-five thousand dollars ($25,000) or more in expenditures have been made, whether by the candidate or by a committee or committees controlled by the candidate or whose participation in the direct primary or general election is primarily in support of the candidate’s candidacy. Each statewide candidate whose contributions and expenditures are less than twenty-five thousand dollars ($25,000) shall be subject to an audit on a random basis of 10 percent of the number of such candidates.
(c) Each candidate for the Legislature or superior court judge in a direct primary or general election shall be subject to audit by random selection if it is determined that fifteen thousand dollars ($15,000) or more in contributions have been received or fifteen thousand dollars ($15,000) or more in expenditures have been made, whether by the candidate or by a committee or committees controlled by the candidate or primarily supporting the candidate’s candidacy. Random selection shall be made of 25 percent of the Senate districts, 25 percent of the Assembly districts, and 25 percent of the judicial offices contested in an election year.
(d) Each candidate for the Legislature in a special primary or special runoff election for whom it is determined that fifteen thousand dollars ($15,000) or more in contributions have been raised or fifteen thousand dollars ($15,000) or more in expenditures have been made, whether by the candidate or by a committee or committees controlled by the candidate or primarily supporting the candidate’s candidacy.
(e) Each controlled committee of any candidate who is being audited pursuant to subdivision (b), (c), or (d).
(f) Each committee, other than a committee specified in subdivision (c) of Section 82013, primarily supporting or opposing a candidate who is being audited pursuant to subdivision (b), (c), or (d) if it is determined that the committee has expended more than ten thousand dollars ($10,000).
(g) Each committee, other than a committee specified in subdivision (c) of Section 82013, whose participation is primarily in support of or in opposition to a state measure or state measures if it is determined that the committee has expended more than ten thousand dollars ($10,000) on such measure or measures.
(h) Each committee, other than a committee defined in subdivision (c) of Section 82013, a controlled committee or a committee primarily supporting or opposing a state candidate or measure, if it is determined that the committee has raised or expended more than ten thousand dollars ($10,000) supporting or opposing state candidates or state measures during any calendar year, except that if the commission determines from an audit report that a committee is in substantial compliance with the provisions of the act, the committee thereafter shall be subject to an audit on a random basis with each such committee having a 25-percent chance of being audited.
(i) (1) With respect to local candidates and their controlled committees, the commission shall promulgate regulations which provide a method of selection for these audits.
(2) With respect to candidates for the Board of Administration of the Public Employees’ Retirement System, the commission shall promulgate regulations that provide a method for selection of these audits. The Public Employees’ Retirement System shall reimburse the commission for all reasonable expenses incurred pursuant to this section.
(j) In accordance with subdivisions (a), (b), (c), and (h), the Fair Political Practices Commission shall select by lot the persons or districts to be audited on a random basis. For campaign audits the selection shall be made in public after the last date for filing the first report or statement following the general or special election for which the candidate ran, or following the election at which the measure was adopted or defeated. For lobbying firm and lobbyist employer audits, the selection shall be made in public in February of odd-numbered years.
(k) This section shall remain in effect only until January 1, 2027, and as of that date is repealed.

SEC. 9.

 Section 90001 is added to the Government Code, to read:

90001.
 Audits and investigations conducted pursuant to Section 90000 and subdivision (b) of Section 90006 shall be made with respect to the reports and statements of:
(a) Sixty lobbying firms and lobbyist employers who employ one or more lobbyists, who shall be selected for audit pursuant to the process described in subdivision (j).
(1) Ten of the sixty audits shall be of lobbying firms or lobbyist employers that employ only placement agents.
(2) At least twenty-five of the sixty audits shall be of lobbying firms or lobbyist employers with total reported payments that meet or exceed a monetary threshold set by the Commission. The Commission shall base this threshold on an approximation of the total reported payments of the top 100 lobbying firms and lobbyist employers.
(3) When a lobbying firm or lobbyist employer is audited, the individual lobbyists who are employed by the lobbying firm or the lobbyist employer shall also be audited.
(b) Each statewide, Supreme Court, court of appeal, or Board of Equalization candidate in a direct primary or general election for whom it is determined that twenty-five thousand dollars ($25,000) or more in contributions have been raised or twenty-five thousand dollars ($25,000) or more in expenditures have been made, whether by the candidate or by a committee or committees controlled by the candidate or whose participation in the direct primary or general election is primarily in support of the candidate’s candidacy. Each statewide candidate whose contributions and expenditures are less than twenty-five thousand dollars ($25,000) shall be subject to an audit on a random basis of 10 percent of the number of such candidates.
(c) Each candidate for the Legislature or superior court judge in a direct primary or general election shall be subject to audit by random selection if it is determined that fifteen thousand dollars ($15,000) or more in contributions have been received or fifteen thousand dollars ($15,000) or more in expenditures have been made, whether by the candidate or by a committee or committees controlled by the candidate or primarily supporting the candidate’s candidacy. Random selection shall be made of 25 percent of the Senate districts, 25 percent of the Assembly districts, and 25 percent of the judicial offices contested in an election year.
(d) Each candidate for the Legislature in a special primary or special runoff election for whom it is determined that fifteen thousand dollars ($15,000) or more in contributions have been raised or fifteen thousand dollars ($15,000) or more in expenditures have been made, whether by the candidate or by a committee or committees controlled by the candidate or primarily supporting the candidate’s candidacy.
(e) Each controlled committee of any candidate who is being audited pursuant to subdivision (b), (c), or (d).
(f) Each committee, other than a committee specified in subdivision (c) of Section 82013, primarily supporting or opposing a candidate who is being audited pursuant to subdivision (b), (c), or (d) if it is determined that the committee has expended more than ten thousand dollars ($10,000).
(g) Each committee, other than a committee specified in subdivision (c) of Section 82013, whose participation is primarily in support of or in opposition to a state measure or state measures if it is determined that the committee has expended more than ten thousand dollars ($10,000) on such measure or measures.
(h) Each committee, other than a committee defined in subdivision (c) of Section 82013, a controlled committee or a committee primarily supporting or opposing a state candidate or measure, if it is determined that the committee has raised or expended more than ten thousand dollars ($10,000) supporting or opposing state candidates or state measures during any calendar year, except that if the commission determines from an audit report that a committee is in substantial compliance with the provisions of the act, the committee thereafter shall be subject to an audit on a random basis with each such committee having a 25-percent chance of being audited.
(i) (1) With respect to local candidates and their controlled committees, the commission shall promulgate regulations which provide a method of selection for these audits.
(2) With respect to candidates for the Board of Administration of the Public Employees’ Retirement System, the commission shall promulgate regulations that provide a method for selection of these audits. The Public Employees’ Retirement System shall reimburse the commission for all reasonable expenses incurred pursuant to this section.
(j) In accordance with subdivisions (a), (b), (c), and (h), the Commission shall select by lot the persons or districts to be audited on a random basis. For campaign audits the selection shall be made in public after the last date for filing the first report or statement following the general or special election for which the candidate ran, or following the election at which the measure was adopted or defeated. For lobbying firm and lobbyist employer audits, the selection shall be made in public in February of odd-numbered years.
(k) This section shall become operative on January 1, 2027.
(l) This section shall remain in effect only until January 1, 2033, and as of that date is repealed.

SEC. 10.

 Section 90001 is added to the Government Code, to read:

90001.
 Audits and investigations shall be made pursuant to Section 90000 with respect to the reports and statements of:
(a) Each lobbying firm and each lobbyist employer who employs one or more lobbyists shall be subject to an audit on a random basis with these lobbying firms or lobbyist employers having a 25-percent chance of being audited. When a lobbying firm or lobbyist employer is audited, the individual lobbyists who are employed by the lobbying firm or the lobbyist employer shall also be audited.
(b) Each statewide, Supreme Court, court of appeal, or Board of Equalization candidate in a direct primary or general election for whom it is determined that twenty-five thousand dollars ($25,000) or more in contributions have been raised or twenty-five thousand dollars ($25,000) or more in expenditures have been made, whether by the candidate or by a committee or committees controlled by the candidate or whose participation in the direct primary or general election is primarily in support of the candidate’s candidacy. Each statewide candidate whose contributions and expenditures are less than twenty-five thousand dollars ($25,000) shall be subject to an audit on a random basis of 10 percent of the number of such candidates.
(c) Each candidate for the Legislature or superior court judge in a direct primary or general election shall be subject to audit by random selection if it is determined that fifteen thousand dollars ($15,000) or more in contributions have been received or fifteen thousand dollars ($15,000) or more in expenditures have been made, whether by the candidate or by a committee or committees controlled by the candidate or primarily supporting the candidate’s candidacy. Random selection shall be made of 25 percent of the Senate districts, 25 percent of the Assembly districts, and 25 percent of the judicial offices contested in an election year.
(d) Each candidate for the Legislature in a special primary or special runoff election for whom it is determined that fifteen thousand dollars ($15,000) or more in contributions have been raised or fifteen thousand dollars ($15,000) or more in expenditures have been made, whether by the candidate or by a committee or committees controlled by the candidate or primarily supporting the candidate’s candidacy.
(e) Each controlled committee of any candidate who is being audited pursuant to subdivision (b), (c), or (d).
(f) Each committee, other than a committee specified in subdivision (c) of Section 82013, primarily supporting or opposing a candidate who is being audited pursuant to subdivision (b), (c), or (d) if it is determined that the committee has expended more than ten thousand dollars ($10,000).
(g) Each committee, other than a committee specified in subdivision (c) of Section 82013, whose participation is primarily in support of or in opposition to a state measure or state measures if it is determined that the committee has expended more than ten thousand dollars ($10,000) on such measure or measures.
(h) Each committee, other than a committee defined in subdivision (c) of Section 82013, a controlled committee or a committee primarily supporting or opposing a state candidate or measure, if it is determined that the committee has raised or expended more than ten thousand dollars ($10,000) supporting or opposing state candidates or state measures during any calendar year, except that if the commission determines from an audit report that a committee is in substantial compliance with the provisions of the act, the committee thereafter shall be subject to an audit on a random basis with each such committee having a 25-percent chance of being audited.
(i) (1) With respect to local candidates and their controlled committees, the commission shall promulgate regulations which provide a method of selection for these audits.
(2) With respect to candidates for the Board of Administration of the Public Employees’ Retirement System, the commission shall promulgate regulations that provide a method for selection of these audits. The Public Employees’ Retirement System shall reimburse the commission for all reasonable expenses incurred pursuant to this section.
(j) In accordance with subdivisions (a), (b), (c), and (h), the Fair Political Practices Commission shall select by lot the persons or districts to be audited on a random basis. For campaign audits the selection shall be made in public after the last date for filing the first report or statement following the general or special election for which the candidate ran, or following the election at which the measure was adopted or defeated. For lobbying firm and lobbyist employer audits, the selection shall be made in public in February of odd-numbered years.
(k) This section shall become operative on January 1, 2033.

SEC. 6.SEC. 11.

 Section 90006 of the Government Code is amended to read:

90006.
 The Commission shall conduct audits and field investigations of the following:
(a) Candidates for Controller and member of the Board of Equalization and of committees supporting such candidates.
(b) (1) Reports and statements filed with the Secretary of State pursuant to Chapter 6 (commencing with Section 86100).
(2) The Commission shall conduct audits pursuant to paragraph (1) commencing with the audits selected in February 2027 pursuant to subdivision (j) of Section 90001.
(c) This section shall remain in effect only until January 1, 2033, and as of that date is repealed.

SEC. 12.

 Section 90006 is added to the Government Code, to read:

90006.
 (a) Audits and field investigations of candidates for Controller and member of the Board of Equalization and of committees supporting such candidates shall be made by the Commission instead of the Franchise Tax Board.
(b) This section shall become operative on January 1, 2033.

SEC. 7.SEC. 13.

 Section 90010 is added to the Government Code, to read:

90010.
 (a) An audit conducted by the Commission shall be publicly posted on the Commission’s internet website for at least 10 years from the conclusion of the audit.
(b) The Commission shall annually report to the Legislature on the number and type of audits completed by the Commission.
(c) The Commission shall adopt regulations or policies to ensure the operational independence of audit personnel from enforcement operations under this title.
(d) This section shall remain in effect only until January 1, 2033, and as of that date is repealed.

SEC. 8.SEC. 14.

 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. 9.SEC. 15.

 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.
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