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 |
Introduced by Senator Glazer |
February 16, 2024 |
LEGISLATIVE COUNSEL'S DIGEST
Digest Key
Vote: 2/3 Appropriation: YES Fiscal Committee: YES Local Program: YESBill Text
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.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.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.SEC. 3.SEC. 4.
Section 86102 of the Government Code is amended to read:86102.
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.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: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: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.