Bill Text: CA SB658 | 2023-2024 | Regular Session | Chaptered

California Senate Bill 658

Bill Title: Nominations: tax return disclosures: candidates for Governor.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2023-10-13 - Chaptered by Secretary of State. Chapter 880, Statutes of 2023. [SB658 Detail]

Download: California-2023-SB658-Chaptered.html

Senate Bill No. 658

CHAPTER 880

An act to amend Sections 8901, 8902, and 8903 of the Elections Code, relating to elections.

[ Approved by Governor October 13, 2023. Filed with Secretary of State October 13, 2023. ]

LEGISLATIVE COUNSEL'S DIGEST

SB 658, McGuire. Nominations: tax return disclosures: candidates for Governor.

Existing law prohibits the name of a candidate for Governor from being printed on the ballot of the direct primary election unless the candidate, at least 88 days before the direct primary election, files with the Secretary of State 2 copies of every income tax return, as defined, the candidate filed with the Internal Revenue Service in the 5 most recent taxable years. Existing law requires the candidate to redact specified information from one copy of each submitted return, and authorizes the candidate to redact additional information as specified. Existing law requires the Secretary of State, within 5 days of receipt, to make the redacted versions of the candidate’s tax returns available to the public on the Secretary of State’s internet website, and to continuously post the returns until the official canvass for the direct primary election is completed. Existing law requires the Secretary of State to retain the paper copies of the submitted tax returns until the completion of the official canvass of the ensuing general election.

This bill would extend these requirements to general elections and recall elections in addition to direct primary elections. The bill would require and authorize redaction of additional information on the returns, as specified. The bill would require the Secretary of State to make the redacted copies of the tax returns public at the time the Secretary of State issues the certified list of candidates for the election. The bill would require the Secretary of State to continuously post the tax returns until the official canvass is completed for the election at which a candidate is elected to the office, except that the tax returns of a candidate who was not nominated to participate in the general election need only be posted until the official canvass for the direct primary election is completed. The bill would require the Secretary of State to retain paper copies of the submitted tax returns until the completion of the official canvass of the election at which a candidate is elected to the office. The bill would exclude transcripts from the Internal Revenue Service and accountant notes from the definition of “income tax return” for these purposes.

Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO

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

SECTION 1.

Section 8901 of the Elections Code is amended to read:

8901.

For the purposes of this part, “income tax return” means any tax or information return, declaration of estimated tax, or claim for refund required by, or provided for or permitted under, the provisions of the Internal Revenue Code, and that is filed on behalf of, or with respect to, any person, and any amendment or supplement thereto, including supporting schedules, attachments, or lists that are supplemental to, or part of, the return so filed. For the purposes of this part, an “income tax return” does not include transcripts from the Internal Revenue Service nor accountant notes.

SEC. 2.

Section 8902 of the Elections Code is amended to read:

8902.

(a) Notwithstanding any other law, the name of a candidate for Governor shall not be printed on a ballot, unless the candidate, at least 88 days before the election or, in the case of a recall election, at least 60 days before the recall election, files with the Secretary of State copies of every income tax return the candidate filed with the Internal Revenue Service in the five most recent taxable years, in accordance with the procedure set forth in Section 8903.

(b) If the candidate has not filed the candidate’s income tax return with the Internal Revenue Service for the tax year immediately preceding the election, the candidate shall submit a copy of the income tax return to the Secretary of State within five days of filing the return with the Internal Revenue Service.

(c) The requirement in subdivision (a) does not apply to any year in which the candidate was not required to file the candidate’s income tax return with the Internal Revenue Service.

SEC. 3.

Section 8903 of the Elections Code is amended to read:

8903.

(a) The candidate shall submit the following to the Secretary of State:

(1) (A) Two copies of each tax return required by Section 8902. One copy of each tax return shall be identical to the version submitted to the Internal Revenue Service, without redactions, and shall not be subject to disclosure pursuant to this section. One copy shall be identical to the version submitted to the Internal Revenue Service but shall be redacted pursuant to this paragraph. The tax returns shall be provided to the Secretary of State in hard-copy form not later than 5 p.m. on the 88th day prior to the election or, in the case of a recall election, not later than 5 p.m. on the 60th day prior to the recall election.

(B) The candidate shall redact the following information from the redacted copy of each tax return:

(i) Social security numbers.

(ii) Home address.

(iii) Telephone number.

(iv) Email address.

(v) Medical information.

(vi) Bank account numbers and routing numbers.

(vii) Internal Revenue Service personal identification number (PIN).

(i) Names of dependent minors.

(ii) Employer identification number.

(iii) Business addresses.

(iv) Preparer or accountant tax identification number, client number, address, telephone number, and email address of paid tax return preparers or accountants.

(2) A written consent form, signed by the candidate, granting the Secretary of State permission to publicly release a version of the candidate’s tax returns redacted pursuant to this section. The Secretary of State shall prepare a standard consent form consistent with this paragraph.

(b) The Secretary of State shall review the redacted copy of each tax return submitted by the candidate to ensure that the redactions comply with subdivision (a). If the Secretary of State determines that the candidate has redacted information other than that permitted by subdivision (a), or failed to redact information required to be redacted by subdivision (a), the Secretary of State shall notify the candidate of any deficiencies. The candidate shall submit corrected hard copies of the tax return no later than 5:00 p.m. on the 78th day prior to the election or, in the case of a recall election, not later than 5 p.m. on the 57th day prior to the recall election. If the corrected hard copies are not timely submitted, the candidate shall not be qualified to have their name placed on the ballot of the election.

(c) (1) At the time the Secretary of State issues the certified list of candidates for the election in accordance with Section 8120, the Secretary of State shall make the redacted copies of the tax returns available to the public on the Secretary of State’s internet website. Except as provided by paragraph (2), the Secretary of State shall make public the redacted copies of the tax returns submitted by the candidate pursuant to subdivision (a).

(2) If the candidate is required to submit a corrected copy of a tax return pursuant to subdivision (b), the Secretary of State shall make public that corrected copy.

(3) The redacted tax returns shall be continuously posted until such time as the official canvass is completed for the election at which a candidate is elected to the office, except that the tax returns of a candidate who participated in a primary election and who was not nominated to participate in the general election need only be posted until the official canvass for the primary election is completed.

(4) The Secretary of State shall retain the paper copies of the submitted tax returns until the completion of the official canvass of the election at which a candidate is elected to the office. Thereafter, the paper copies of the submitted tax returns shall be destroyed as soon as practicable, unless the Secretary of State has received a court order, or a lawful written request from a state or federal governmental agency, directing the Secretary of State to preserve the submitted tax returns.