This initiative measure is submitted to the people in accordance with the provisions of Article II, Section 8 of the Constitution.

This initiative measure amends, repeals, and adds sections to various codes; therefore, existing provisions proposed to be deleted are printed in strikeout type and new provisions proposed to be added are printed in italic type to indicate that they are new. PROPOSED LAW

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

SECTION 1. Chapter 5 (commencing with Section 85100) of Title 9 of the Government Code is repealed.

SEC. 2. Chapter 5 (commencing with Section 85100) is added to the Government Code, to read:

Chapter 5. Anti-Corruption Act of 1996

Article 1. Applicability, Definitions, and Amendment

   85100. This chapter shall be known and may be cited as the Anti-Corruption Act of 1996.
   85101. The people find and declare as follows:
   (a) Our representative system of democracy has been distorted by the increasing role of money in the process. The interests of average voters are not represented in a process which favors candidates who can raise and spend huge sums of money from narrow interests rather than those candidates who represent a broad base of community support.
   (b) Politicians have failed to impose rules which are sufficient to govern campaign spending, contributions, and lobbyists to prevent corruption. In the past seven years, the people have witnessed many Members of the Legislature, their staffs, and lobbyists convicted of bribery and other forms of corruption in which campaign contributions have been linked to official actions. Past and current laws did not and do not prevent corruption, therefore the people need the strictest measures possible to prevent corruption in the future.
   (c) Large contributions to political committees and political campaigns have a corrupting or potentially corrupting influence on the policymaking and electoral process, resulting in an elections process that distances voters from candidates. Over 90 percent of the money raised by California candidates for public offices comes in contributions of one hundred dollars ($100) or more.
   (d) Candidates generally do not seek financial support from people in the district that the candidates seek to represent. State legislators raise over 90 percent of their contributions from people and interests who live outside their district.
   (e) Candidates are increasingly reliant on campaign contributions from groups and individuals with a specific financial stake in matters before state and local governments.
   (f) While spending on political campaigns has escalated, citizen participation in the political process has declined, and the people know too little about the issues or the particular positions of candidates for elective office. Limits on campaign spending will relieve candidates and officeholders from the need for fundraising. The conduct of both political campaigns and governance thereby will be improved. Campaign expenditures have risen by 4,000 percent since 1958. The increase has consisted principally of contributions from special interests.
   (g) The United States Supreme Court based its decision in Buckley v. Valeo, 46 L. Ed. 2d 659, on a concern that spending limits could restrict political speech, ''by reducing the number of issues discussed, the depth of their exploration, and the size of the audience reached." The People's experience with the electoral process is otherwise. In California elections, unlimited spending has not increased the reach of issues to more voters. Instead, money has drowned and distorted political discourse.
   (h) Current campaign financing arrangements, with the actual and perceived preferential access to lawmakers for special interests capable of contributing sizeable sums to lawmakers' campaigns, have provoked public disaffection with elective government.
   (i) Lobbyists have a specific financial stake in legislation and policy and have a corrupting or potentially corrupting effect on elections when they make contributions to candidates for elective office in an executive or legislative body in which they also lobby.
   (j) Political parties are increasingly controlled by large special interest contributors. Political parties respond less to average voters' needs and deter voter participation in political organization.
   85102. The people enact this chapter to accomplish the following purposes:
   (a) To restore trust and integrity in the state's elections and governing institutions.
   (b) To eliminate corruption and the perception of corruption by reducing the influence of large contributions from individuals and groups with a specific financial stake in matters before state and local governments.
   (c) To ensure, by severing the link between lobbying and campaign fundraising, that individuals and interest groups have an opportunity to participate in elections and governing.
   (d) To improve the disclosure of contribution sources in reasonable and effective ways in order to prevent corruption and the appearance of corruption of elections and candidates.
   (e) To improve citizen participation in elections by making elected officials and political parties more accountable to constituents than to special interest groups, thereby fostering competition and encouraging greater grassroots participation in political organization.
   (f) To relieve candidates for elective office and elected officers from the burdens of excessive fundraising, thereby providing greater opportunity for public debate and political discourse.
   85103. Unless the term is defined specifically in this chapter or the contrary is stated or clearly applies from the context, the definitions set forth in this title shall govern the interpretation of this chapter. This chapter shall be construed liberally to achieve its purposes. Nothing in this chapter shall exempt any person from the applicable provisions of this title or of any other law. Nothing in this chapter shall be construed to apply to the activities of any candidate, or committee, or to any election that is specifically subject to the Federal Election Campaign Act of 1971, as amended.
   85104. The following terms as used in this chapter have the following meanings:
   (a) ''Candidate" means that term as defined in Section 82007.
   (b) ''Committee" means that term as defined in subdivision (a) or (c) of Section 82013, but shall not include a candidate, as defined in subdivision (a) of this section, and shall not include a committee that does not make contributions to candidates. For purposes of this chapter, a political party is a committee unless specific provisions applicable to political parties indicate otherwise.
   (c) ''Citizen Contribution Committee" means a committee whose membership is comprised solely of 25 or more individuals who each make a contribution or contributions which in the aggregate total twenty-five dollars ($25) or less per calendar year per individual member. Such a committee shall be in existence for at least six months prior to making any contribution to any candidate or committee and shall not be controlled by any candidate. Nothing in this section shall prohibit a political party from establishing Citizen Contribution Committees.
   (d) ''Individual" means one human being.
   (e) ''Statewide elective office" means the office of Governor, Lieutenant Governor, Attorney General, Controller, Treasurer, Secretary of State, Superintendent of Public Instruction, Justices of the Supreme Court, and Insurance Commissioner, and any other office for which all registered voters of the state are entitled to vote in a general election.
   (f) ''Voting age population" means the population of the state, city, county, or other electoral district aged 18 years or over as determined by the United States Secretary of Commerce. If for any reason no such determination is made, the commission shall from time to time determine the voting age population from the best readily available sources of information.

Article 2. Candidacy

   85200. (a) Prior to the solicitation or receipt of any contribution or loan, an individual who intends to be a candidate for an elective office shall file with the commission and with the local filing officer, if any, with whom he or she is required to file campaign statements pursuant to Section 84215, a statement signed under penalty of perjury of the intention to be a candidate for office and identifying that specific office.
   (b) A candidate shall establish one campaign contribution account at an office of a financial institution located in the state. Within 10 calendar days of establishing this account, the name and address of the financial institution and the account number shall be filed with the commission and with the local filing officer, if any, with whom he or she is required to file campaign statements pursuant to Section 84215.
   (c) All contributions or loans made to the candidate, or to the candidate's controlled committee, shall be deposited into the account established pursuant to subdivision (b). Any personal funds of the candidate that will be used to promote the election of the candidate shall be deposited into the account. All campaign expenditures shall be made from the account.

Article 3. Contribution Limitations

   85301. (a) No person, except a Citizen Contribution Committee, shall make to a candidate, and no candidate shall accept, a contribution or contributions with an aggregate value in excess of the following:
   (1) One hundred dollars ($100) per election per candidate other than candidates for statewide elective office and the Board of Equalization.
   (2) Two hundred dollars ($200) per election per candidate for statewide elective office and the Board of Equalization.
   (b) No person shall make one or more contributions to any other person for the purpose of contributing to a specific candidate, which when added together, or when added together with contributions made directly to the candidate by the first person, will have an aggregate value in excess of the limits stated in this section.
   (c) Nothing in this chapter shall prohibit independent expenditures by a person.
   (d) Nothing in this chapter shall prohibit a candidate from making a contribution or contributions of his or her personal funds to his or her own controlled committee in excess of the limits in this section, except that a candidate's expenditure of personal funds in the aggregate shall not exceed the limitations set forth in Section 85401 to the extent that section is in effect.
   (e) This chapter shall not prohibit the state or a local jurisdiction from establishing lower contribution limitations than those set forth in this chapter.
   (f) For purposes of this section, primary, general, special, and runoff elections are separate elections.
   85302. A Citizen Contribution Committee shall be permitted to make a contribution or contributions to a candidate, and a candidate shall be permitted to accept contributions from a Citizen Contribution Committee to the extent that such contributions do not exceed the maximum amount of what 100 individuals can contribute to a candidate, as set forth in Section 85301.
   85303. No person shall make to any committee, and no committee shall accept from any person, one or more contributions with an aggregate value in excess of two hundred dollars ($200) in any calendar year per committee. This provision shall not apply to contributions to candidates, Citizen Contribution Committees, or political parties or to contributions which are otherwise prohibited by law.
   85304. (a) No person, except a Citizen Contribution Committee, shall make to a state or local political party organized under the laws of this state for the purpose of making contributions directly or indirectly in connection with state or local elections in California, one or more contributions with an aggregate value in excess of six hundred dollars ($600) per calendar year per political party. No state or local political party organized under the laws of this state shall accept from a person, except a Citizen Contribution Committee, for the purpose of making contributions directly or indirectly in connection with state or local elections in California, one or more contributions with an aggregate value in excess of six hundred dollars ($600) in any calendar year per political party. The limitations of this subdivision shall apply to contributions for generic activities which do not identify a specific candidate as well as to get-out-the-vote, voter file maintenance and all other activities of the political party in connection with state or local elections in California. Nothing in this subdivision shall be read to prohibit a Citizen Contribution Committee from making contributions to a political party to the extent that such contributions do not exceed the maximum amount of what 100 persons can contribute to a political party, as set forth above. The limitations of this subdivision shall not apply to contributions to the Voter Registration Fund of a state or local political party established under subdivision (b).
   (b) A state or local political party shall be permitted to establish a Voter Registration Fund for the exclusive purpose of conducting non-candidate-specific, partisan voter registration activities in California. No person shall be permitted to make, nor shall a state or local political party organized under the laws of this state accept, contributions which when aggregated total more than five thousand dollars ($5,000) per person in any calendar year to the Voter Registration Fund. Any administrative or other costs associated with a communication to solicit or otherwise direct contributions to the Voter Registration Fund shall be permitted to be paid through the Voter Registration Fund to the extent that the communication has as its principal purpose to register voters in California.
   85305. The following shall apply to limit the amount of aggregate contributions:
   (a) No individual shall make contributions with an aggregate value of more than two thousand dollars ($2,000) per calendar year to all state and local candidates, committees, and state or local political parties organized under the laws of this state for the purpose of making contributions directly or indirectly in connection to state or local elections in California. Of this aggregate amount, an individual shall contribute no more than one thousand dollars ($1,000) per calendar year to committees other than political party committees. The limitations of this subdivision shall not apply to contributions to the Voter Registration Fund established by a state or local political party.
   (b) No person shall make contributions with an aggregate value of more than ten thousand dollars ($10,000) per calendar year to all state and local candidates, committees, and state and local political parties organized under the laws of this state for the purpose of making contributions directly or indirectly in connection with state or local elections in California. The limitations of this subdivision shall not apply to individuals or Citizen Contribution Committees.
   85306. (a) For purposes of seeking elective office, a candidate may not accept more than 25 percent of his or her total dollar value in contributions from individuals who at the time of their contribution were not of the voting age population of the electoral district of the elective office sought by the candidate. The limitations of this subdivision shall not apply to funding provided by federal, state, or local government for purposes of campaigning for an elective office.
   (b) Contributions to candidates from persons, other than individuals, shall be treated as contributions from individuals who are not of the voting age population of the electoral district of the elective office sought by the candidate. When aggregated with contributions from individuals who are not of the voting age population of the electoral district as described in subdivision (a), such contributions from persons, other than individuals, shall not total more than 25 percent of the total dollar value of the candidate's contributions. This subdivision shall not apply to contributions from a Citizen Contribution Committee established and maintained within the electoral district of the candidate and 100 percent of whose membership comprises individuals who at the time of their contribution were of the voting age population of the electoral district of the elective office sought by the candidate. For the purposes of this subdivision only, membership less than 100 percent shall not constitute a violation of this provision to the extent that such membership meets the de minimis requirements for membership as set forth in this subdivision.
   (c) The percentage of contributions from individuals in subdivision (a) and persons in subdivision (b) shall be reported by the candidate on any campaign statement required to be filed by the candidate pursuant to Chapter 4 (commencing with Section 84100). If any campaign statement filed by a candidate pursuant to Chapter 4 (commencing with Section 84100) indicates, or should indicate, that more than 25 percent of the candidate's total dollar value in contributions is from persons who at the time of their contribution were not, pursuant to subdivisions (a) and (b), individuals of the voting age population of the electoral district of the elective office sought by the candidate, there shall be a violation of this title.
   (1) When contributions to a candidate exceed the limits of this section by 10 percent or less of the maximum permissible dollar value, the remedies set forth in Chapter 3 (commencing with Section 83100) and Chapter 11 (commencing with Section 91000) shall apply, except that, when the commission or a court of law assesses a monetary penalty in an administrative or civil action for this violation, the amount of the monetary penalty shall be equal to the amount by which the contributions exceeded the limit.
   (2) When contributions to a candidate exceed the limits of this section by more than 10 percent of the maximum permissible dollar value, the remedies set forth in Chapter 3 (commencing with Section 83100) and Chapter 11 (commencing with Section 91000) shall apply, except that, when the commission or a court of law assesses a monetary penalty in an administrative or civil action for this violation, the amount of the monetary penalty shall be three times the amount by which the contributions exceeded the limit, or ten thousand dollars ($10,000), whichever is greater. (3) The monetary penalty shall be distributed in accordance with Section 91009. Notwithstanding Section 13340, the moneys deposited into this fund are hereby appropriated to the commission for the purpose of enforcing the provisions of this title.
   85307. (a) No candidate shall accept or solicit contributions more than nine months before the election for the office for which the candidate has filed his or her statement of intention to be a candidate for elective office pursuant to Section 85200. The commission, or local elections authority designated by the commission in the case of local elections, shall for each election designate the date on which a candidate may begin to accept or solicit contributions.
   (b) No candidate shall solicit contributions after the date of the general or runoff election for the office to which the candidate sought election. No candidate shall accept contributions more than 30 calendar days after the date of the general or runoff election for the office to which the candidate sought election.
   (c) For purposes of this chapter, all contributions shall be deposited in the candidate's campaign account within 10 calendar days after they are received or, in the alternative, shall be returned to the contributor. Contributions so deposited shall be deemed to have been accepted by the candidate.
   85308. (a) No candidate may make any contribution to any other candidate who has established a candidate account pursuant to Section 85200.
   (b) This section shall not prohibit a candidate from making a contribution from his or her own personal funds either to his or her own candidacy, to the controlled committee of any other candidate for elective office, or to a recall or ballot measure committee.
   (c) This section shall not prohibit a candidate from transferring contributions among his or her own controlled committees, so long as each transfer complies with both of the following:
   (1) The transferring committee makes each transfer on a per-contribution basis in reverse chronological order of the contributions it received, beginning with the most recent contributor to the transferring committee.
   (2) No transfer, either by itself, or when added to any contribution made by the same contributor to the committee receiving the contribution, shall exceed the amount the same contributor is otherwise permitted, pursuant to this chapter, to contribute to the committee receiving the transferred contribution.
   85309. (a) A loan to a candidate or a candidate's controlled committee for the purpose of seeking elective office by a commercial lending institution in the normal course of business shall not be subject to this chapter and shall be made by written instrument from the maker of the loan. A loan by a commercial lending institution shall be made to a candidate bearing the usual and customary interest rate of the lending institution. If the loan is made other than by a commercial lending institution in the normal course of business, then the terms of the loan shall be in writing and provide for payment of at least 80 percent of the prevailing commercial market rate of interest on the loan. All loans shall provide for satisfaction of the loan not later than 30 days after the election for which the candidate has filed or declared.
   (b) Extensions of credit for a period of more than 30 calendar days, other than by loans, are considered to be contributions and are subject to the contribution limitations of this chapter.
   (c) No candidate shall personally loan to his or her campaign money, goods, or services that have an aggregate value at any one point in time of more than ten thousand dollars ($10,000) or more than twenty-five thousand dollars ($25,000) in the case of a candidate for Governor. Nothing in this section shall prohibit or restrict a candidate from making contributions, other than loans, to his or her own campaign from the personal funds of the candidate.
   85310. (a) For purposes of this chapter, a contribution made by a married person shall not also be considered a contribution by that person's spouse.
   (b) Contributions by children under the age of 18 years shall be treated as contributions by their parents or guardians.
   85311. Any candidate or committee that accepts a contribution made in violation of Section 85301, 85302, 85303, or 85304 shall, not later than 30 days after knowing or having reason to know of that violation, deposit an amount equivalent to the value of that contribution into the Anti-Corruption Act of 1996 Enforcement Fund established by the commission to enforce the provisions of this chapter. If a candidate or committee fails to make this payment within the 30-day period, the candidate or committee shall have violated this section. The remedies set forth in Chapter 3 (commencing with Section 83100) and Chapter 11 (commencing with Section 91000) shall apply to violations of this section, except that when the commission or a court of law assesses a monetary penalty in an administrative or civil action for a violation of this section the amount of the monetary penalty shall be three times the value of the contribution the candidate or committee failed to pay to the commission as required by this section. The statute of limitations shall not apply to this provision. The monetary penalty shall be distributed in accordance with Section 91009. Notwithstanding Section 13340, the moneys deposited into the Anti-Corruption Act of 1996 Enforcement Fund are hereby appropriated to the commission for the purpose of enforcing the provisions of this title.
   85312. No candidate shall solicit or accept a contribution from, or arranged or transmitted by, a lobbyist or lobbying firm and no lobbyist or lobbying firm shall make, arrange, or transmit in any way a contribution to a candidate if that lobbyist or lobbying firm is required to register as a lobbyist or lobbying firm either pursuant to Chapter 6 (commencing with Section 86100) or under any other provision of state or local law for the governmental agency or body in which that candidate holds office or to which that candidate is seeking election.
   85313. (a) Within 90 days after a candidate withdraws from, is defeated in an election for, or is elected to, an office for which the candidate has filed a statement of intention to be a candidate for elective office pursuant to Section 85200, the candidate shall distribute the balance of campaign funds raised for that election that is in excess of the expenses for the election on a pro rata basis to the candidate's contributors or turn over the excess to the Anti-Corruption Act of 1996 Enforcement Fund for the purposes of enforcing this title.
   (b) Any excess campaign funds may be used to pay reasonable attorney's fees and other costs in connection with enforcement proceedings against the candidate or legal challenge to election results. All funds so expended shall be publicly disclosed pursuant to the requirements of Chapter 4 (commencing with Section 84100) and shall be exempt from the attorney-client or any other privilege for nondisclosure.
   (c) No contributions may be solicited for the purpose of paying attorney's fees as provided in subdivision (a), except to the extent that the contributions have been raised within the limitations and restrictions of this chapter.
   85314. (a) It shall be unlawful for:
   (1) Any business entity, labor organization, state or national bank, or nonprofit corporation organized by authority of any law of Congress or any state to make a contribution for the purpose of influencing an election to any elective office or for the purpose of influencing any primary election or political convention or caucus held to select candidates for any elective office.
   (2) Any candidate or person knowingly to accept or receive any contribution prohibited by this section.
   (3) Any officer or any director of any business entity, labor organization, state or national bank, or nonprofit corporation organized by authority of any law of Congress or any state to consent to any contribution by any business entity, labor organization, state or national bank, or nonprofit corporation prohibited by this section.
   (b) The remedies set forth in Chapter 3 (commencing with Section 83100) and Chapter 11 (commencing with Section 91000) shall apply to any business entity, labor organization, state or national bank, or nonprofit corporation that violates this section, except that, when the commission or a court of law assesses a monetary penalty in an administrative or civil action for a violation of this section, the amount of the monetary penalty shall be three times the amount contributed or expended in violation of this section or ten thousand dollars ($10,000), whichever is greater.
   (c) In addition to any other administrative or civil remedy applicable under this title, any officer, director, attorney, accountant, or other agent of the business entity, labor organization, state or national bank, or nonprofit corporation violating any provision of this section or authorizing the violation of this section, or any person who violates or in any way knowingly aids or abets the violation thereof, is guilty of a misdemeanor and, in addition to any other criminal penalties provided by law, a fine of not more than ten thousand dollars ($10,000) may be imposed upon conviction for each violation.
   (d) Nothing in this section shall prohibit the employees, shareholders, or members of any business entity, labor organization, state or national bank, or nonprofit corporation organized under the authority of Congress or the laws of any state from establishing a committee that operates free of any support from any business entity, labor organization, state or national bank, or nonprofit corporation organized under the authority of Congress or the laws of any state, subject to the limitations otherwise provided in this chapter.
   (e) Nothing in this section shall prohibit a business entity, labor organization, state or national bank, or nonprofit corporation organized under the authority of Congress or the laws of any state from providing indirect support to any Citizen Contribution Committee which receives contributions totaling five thousand dollars ($5,000) or less per calendar year.
   (f) Nothing in this section shall prohibit a business entity, labor organization, state or national bank, or nonprofit corporation organized under the authority of Congress or the laws of any state from providing indirect support to any committee, except a political party or candidate, for administration and compliance. Such support shall not include fundraising or related activity, except as provided in subdivision (g).
   (g) Nothing in this section shall prohibit a business entity, labor organization, state or national bank, or nonprofit organization organized under the authority of Congress or the laws of any state from providing indirect support to any committee, except a political party or candidate, for fundraising or related activity to the extent that such support is in the aggregate 20 percent or less of the contributions received by that committee per calendar year.
   (h) Nothing in this section shall prohibit a business entity, labor organization, state or national bank, or nonprofit corporation organized under the authority of Congress or the laws of this state, which sponsors a committee, from making an expenditure that qualifies as a contribution under this act so long as the business entity, labor organization, state or national bank, or nonprofit corporation is reimbursed by its sponsored committee within 30 days of making the payment.
   (i) This section shall not apply to elections to federal office under the jurisdiction of the Federal Election Campaign Act of 1971, as amended.
   85315. Nothing in this act shall prohibit a labor organization, state or national bank, business entity, nonprofit corporation, or committee from paying the costs of internal communications with its members, employees, or shareholders for the purpose of supporting or opposing a candidate or candidates for elective office or a ballot measure. Such expenditures shall not be considered a contribution or independent expenditure under the provisions of this act, provided such payments are not for the costs of campaign materials used in connection with broadcasting, newspaper, billboard, or similar type of general public communication.
   85316. Contributions made directly or indirectly to or on behalf of a particular candidate through an intermediary or conduit shall be treated as contributions from the contributor and the intermediary or conduit to the candidate for the purposes of this limitation unless the intermediary or conduit is one of the following:
   (a) The candidate or representative of the candidate receiving contributions on behalf of the candidate; provided, however, that the representative shall not include the following persons:
   (1) A committee other than the candidate's campaign committee.
   (2) An officer, employee, or agent of a committee other than the candidate's campaign committee.
   (3) A person registered as a lobbyist with the governmental agency for which the candidate is running or is an officeholder.
   (4) An officer, employee, or agent of a labor organization, business entity, or other organization acting on behalf of the labor organization, business entity, or other organization.
   (b) A volunteer, who otherwise does not fall under subdivision (a), hosting a fundraising event outside and away from the volunteer's place of business.
   (c) A professional fundraiser.
   85317. No person appointed to a public board or commission or as Trustee of the California State University or Regent of the University of California during tenure in office shall donate to, or solicit or accept any campaign contribution for, any committee controlled by the person who made the appointment to that office or any other entity with the intent that the recipient of the donation is the committee controlled by the person who made the appointment.

Article 4. Expenditure Limitations

   85401. (a) A candidate for State Assembly shall not make expenditures for the primary or special primary election which exceed an amount equal to seventy-five thousand dollars ($75,000) and for the general, special, or special runoff election which exceed one hundred fifty thousand dollars ($150,000).
   (b) A candidate for State Senate and Board of Equalization shall not make expenditures for the primary or special primary election which exceed an amount equal to one hundred fifteen thousand dollars ($115,000) and for the general, special, or special runoff election which exceed two hundred thirty-five thousand dollars ($235,000).
   (c) A candidate for statewide office, other than Governor, shall not make expenditures for the primary or special primary election which exceed an amount equal to one million two hundred fifty thousand dollars ($1,250,000) and for the general, special, or special runoff election which exceed one million seven hundred fifty thousand dollars ($1,750,000).
   (d) A candidate for Governor shall not make expenditures for the primary or special primary election which exceed an amount equal to two million dollars ($2,000,000) and for the general, special, or special runoff election which exceed five million dollars ($5,000,000).
   (e) Any local jurisdiction, municipality, or county shall establish expenditure limitations for candidates and controlled committees of such candidates for elective office not to exceed forty cents ($0.40) per election per individual of the voting age population of the local jurisdiction, municipality, or county.
   (f) A candidate who exceeds the limitations in subdivisions (a) through (d) by 10 percent or less of the expenditure limit shall be in violation of this section and required to repay the excess amount to contributors on a pro rata basis or pay the excess amount to the Anti-Corruption Act of 1996 Enforcement Fund. In addition, the remedies set forth in Chapter 3 (commencing with Section 83100) and Chapter 11 (commencing with Section 91000) shall apply to violations of this section covered by this subdivision, except that, when the commission or a court of law assesses a monetary penalty in an administrative or civil action for such a violation, the amount of the monetary penalty shall be three times the amount by which the candidate exceeded the expenditure limit. The monetary penalty shall be distributed in accordance with Section 91009. Notwithstanding Section 13340, the moneys deposited into the Anti-Corruption Act of 1996 Enforcement Fund are hereby appropriated to the commission for the purpose of enforcing the provisions of this title.
   (g) A candidate who exceeds the limitations in subdivisions (a) through (d) by greater than 10 percent of the expenditure limit shall be in violation of this section and required to repay the excess amount to contributors on a pro rata basis or pay the excess amount to the Anti-Corruption Act of 1996 Enforcement Fund. In addition, the remedies set forth in Chapter 3 (commencing with Section 83100) and Chapter 11 (commencing with Section 91000) shall apply to violations of this section covered by this subdivision, except that, when the commission or a court of law assesses a monetary penalty in an administrative or civil action for such a violation, the amount of the monetary penalty shall be three times the amount by which the candidate exceeds the expenditure limit or twenty thousand dollars ($20,000), whichever is greater. The monetary penalty shall be distributed in accordance with Section 91009. Notwithstanding Section 13340, the moneys deposited into the Anti-Corruption Act of 1996 Enforcement Fund are hereby appropriated to the commission for the purpose of enforcing the provisions of this title.
   (h) In the event that the expenditure limitations set forth in this section are not in effect, Sections 85402 through 85404 shall apply.
   85402. (a) Each candidate for elective office shall file, with the Secretary of State and the commission or the local elections authority designated by the commission for local elections, a statement as to whether or not the candidate will abide by the voluntary expenditure limitations set forth in Section 85403 before accepting any contributions or loans for his or her campaign.
   (b) The declaration of intent to abide by or reject the voluntary expenditure limitations filed pursuant to this section shall be under penalty of perjury and certify that, with respect to the election for the office sought by the candidate, the candidate will or will not incur expenditures in excess of the applicable expenditure limitation.
   (c) The Secretary of State shall prescribe the form for filing the information required by this section, which shall include, but not be limited to, all of the following:
   (1) The name of the candidate by which he or she is commonly known and by which he or she transacts private or official business.
   (2) The mailing address of the residence of the candidate.
   (3) A signed declaration by the candidate, under penalty of perjury, stating whether or not he or she will abide by the voluntary expenditure limitations set forth in Section 85403.
   (4) The applicable voluntary expenditure limitation for that office.
   (5) Other information as may be determined by the commission.
   (d) A candidate for elective office who files the statement of acceptance of the voluntary expenditure limitations prescribed in Section 85403 and who, subsequent to filing the statement of acceptance, exceeds the prescribed limits shall be subject to the following:
   (1) If the amount by which the candidate exceeds the prescribed limits is less than 5 percent of the expenditure limit, the candidate or his or her controlled committee shall be required to repay the excess amounts to contributors on a pro rata basis or pay the excess amount to the Anti-Corruption Act of 1996 Enforcement Fund not later than 10 days after the election. No further administrative, civil, or criminal penalty shall be imposed against a candidate who complies with this paragraph. Otherwise, the remedies set forth in Chapter 3 (commencing with Section 83100) and Chapter 11 (commencing with Section 91000) shall apply to violations of this paragraph.
   (2) If the amount by which the candidate exceeds the prescribed limits is 5 percent to less than 10 percent of the expenditure limit, the candidate shall be in violation of this section and required to repay the excess amounts to contributors on a pro rata basis or deposit the amount to the Anti-Corruption Act of 1996 Enforcement Fund not later than 10 days after the election. In addition, the remedies set forth in Chapter 3 (commencing with Section 83100) and Chapter 11 (commencing with Section 91000) shall apply to violations of this section covered by this paragraph, except that, when the commission or a court of law assesses a monetary penalty in an administrative or civil action for such a violation, the amount of the monetary penalty shall be equal to two times the amount by which the candidate exceeds the expenditure limit. The monetary penalty shall be distributed in accordance with Section 91009. Notwithstanding Section 13340, the moneys deposited into the Anti-Corruption Act of 1996 Enforcement Fund are hereby appropriated to the commission for the purpose of enforcing the provisions of this title.
   (3) If the amount by which the candidate exceeds the prescribed limits is 10 percent or more of the expenditure limit, the candidate shall be in violation of this section and required to repay the excess amount to contributors on a pro rata basis or pay the excess amount to the Anti-Corruption Act of 1996 Enforcement Fund not later than 10 days after the election. In addition, the remedies set forth in Chapter 3 (commencing with Section 83100) and Chapter 11 (commencing with Section 91000) shall apply to violations of this section covered by this paragraph, except that, when the commission or a court of law assesses a monetary penalty in an administrative or civil action for such a violation, the amount of the monetary penalty shall be equal to three times the amount by which the candidate exceeds the expenditure limit. The monetary penalty shall be distributed in accordance with Section 91009. Notwithstanding Section 13340, the moneys deposited into the Anti-Corruption Act of 1996 Enforcement Fund are hereby appropriated to the commission for the purpose of enforcing the provisions of this title. In addition, the candidate, in the manner prescribed by the commission but at no cost to the public, shall notify all eligible voters for that election that he or she exceeded the expenditure limit.
   (e) The provisions of this section shall apply only in the event that Section 85401 is not in effect.
   85403. A candidate for elective office may file a voluntary declaration with the Secretary of State and the commission stating that he or she agrees to abide by voluntary spending limits as follows:
   (a) A candidate for State Assembly agrees not to make expenditures for the primary or special primary election which exceed an amount equal to seventy-five thousand dollars ($75,000) and for the general, special, or special runoff election which exceed one hundred fifty thousand dollars ($150,000).
   (b) A candidate for State Senate and Board of Equalization agrees not to make expenditures for the primary or special election which exceed an amount equal to one hundred fifteen thousand dollars ($115,000) and for the general, special, or special runoff election which exceed two hundred thirty-five thousand dollars ($235,000).
   (c) A candidate for statewide office, other than Governor, agrees not to make expenditures for the primary election which exceed an amount equal to one million two hundred fifty thousand dollars ($1,250,000) and for the general election which exceed one million seven hundred fifty thousand dollars ($1,750,000).
   (d) A candidate for Governor agrees not to make expenditures for the primary election which exceed an amount equal to two million dollars ($2,000,000) and for the general, special, or special runoff election which exceed five million dollars ($5,000,000).
   (e) Any local jurisdiction, municipality, or county may establish voluntary expenditure limitations for candidates and controlled committees of such candidates for elective office not to exceed forty cents ($0.40) per election per individual of the voting age population of the local jurisdiction, municipality, or county.
   (f) The provisions of this section shall apply only in the event that Section 85401 is not in effect.
   85404. (a) For each candidate for statewide elective office who, pursuant to Section 85402, has agreed to abide by the voluntary expenditure limitations in Section 85403, the Secretary of State shall publish, at no charge to the candidate, the information set forth in subdivision (e). Publication shall be made in the state ballot pamphlet.
   (b) For each candidate for state legislative office or Board of Equalization who, pursuant to Section 85402, has agreed to abide by the voluntary expenditure limitations in Section 85403, the Secretary of State shall publish, at no charge to the candidate, the information set forth in subdivision (e). In conjunction with the applicable local elections official, publication shall be made in the local ballot pamphlet, unless, but for this subdivision, no local ballot pamphlet will be issued in conjunction with that election, in which case this subdivision shall not apply. The Secretary of State shall bear the pro rata cost of printing, handling, translating, and mailing the local ballot pamphlet for state legislative office or Board of Equalization.
   (c) For each candidate for local office who, pursuant to Section 85402, has agreed to abide by the voluntary expenditure limitations in Section 85403, the local elections official shall publish, at no charge to the candidate, the information set forth in subdivision (e). Publication shall be made in the local ballot pamphlet, unless, but for this subdivision, no local ballot pamphlet will be issued in conjunction with that election, in which case this subdivision shall not apply.
   (d) For each candidate who does not agree to comply with the voluntary expenditure limitations in Section 85403, the Secretary of State or local elections official, as applicable, shall only publish the information set forth in subdivision (e) on behalf of that candidate if the candidate pays, in a timely manner prescribed by the Secretary of State or local elections official, an amount equal to the pro rata or incremental costs of printing, handling, translating, mailing, and related costs in providing the information in the applicable ballot pamphlet. However, if pursuant to subdivision (b) or (c) no ballot pamphlet otherwise will be mailed in conjunction with that election, this subdivision shall not apply.
   (e) The information to be published pursuant to subdivisions (a), (b), (c), and (d) shall be as follows:
   (1) The candidate's name, address, and the elective office sought by the candidate.
   (2) A statement of not more than 200 words submitted by the candidate, setting forth the candidate's background, qualifications, and priorities. The statement may also include a photograph of the candidate.
   (3) A list submitted by the candidate of not more than a total of five individuals, candidates, or organizations who have endorsed the candidate. The candidate shall provide to the Secretary of State or local elections official, as applicable, a statement of endorsement on the letterhead or with the authorized signature of each endorser to be listed.
   (4) A statement, in boldface type equal in size to that used for the candidate's name, as follows: ''Candidate accepted voluntary spending limits approved by the voters in 1996"; or in the case of a candidate who does not accept the voluntary spending limits as follows: ''Candidate did not accept voluntary spending limits approved by the voters in 1996."
   (f) The local elections official shall, in consultation with and in a manner prescribed by the Secretary of State, designate on the ballot those candidates who, pursuant to Section 85402, have agreed to comply with the voluntary expenditure limitations in Section 85403. These candidates shall be identified by placing an asterisk (*) next to their names on the ballot, and each page of the ballot shall contain the following statement: '' * Candidate accepted voluntary spending limits approved by the voters in 1996." Alternatively, candidates who do not accept the voluntary spending limits shall be identified by placing a double asterisk (**) next to their names on the ballot and each page of the ballot shall contain the following statement: '' ** Candidate did not accept voluntary spending limits approved by the voters in 1996."
   (g) The provisions of this section shall apply only in the event that Section 85401 is not in effect.
   85405. The commission shall adjust the expenditure limitations set forth in Section 85401, or Section 85403 if Section 85401 is not in effect, to reflect changes in the Consumer Price Index for California rounded to the nearest one dollar ($1) in January of every odd-numbered year after this chapter becomes operative.
   85406. A candidate who uses his or her personal funds to seek election shall report expenditures of personal funds to the commission at the first instance that the aggregate expenditure or obligation for expenditures of personal funds is 10 percent or more of the expenditure limitations set forth in Section 85401 or 85403, whichever is in effect. Thereafter, the aggregate expenditures or obligations for expenditures of personal funds of a candidate shall be reported to the commission on the candidate's campaign statement at each subsequent reporting period. A candidate who makes expenditures of personal funds of 10 percent or more of the expenditure limitations set forth in Section 85401 or 85403, whichever is in effect, during the 10-day period before the day of the election shall notify, by personal delivery, facsimile, or other electronic means, the commission and all candidates for election to the office sought by the candidate making expenditures or obligations for expenditures of personal funds. Such notification shall be made at each expenditure of 10 percent of the expenditure limitations set forth in Section 85401 or 85403, whichever is in effect. The notification shall occur within 12 hours of expenditures or obligations for expenditures under this subdivision.
   85407. (a) For purposes of this chapter, ''independent expenditure" means an expenditure for an advertisement or other communication that: (1) contains express advocacy; and (2) is not made at the behest of a candidate or a candidate's agent or arranged, coordinated, or directed by the candidate or the candidate's agent.
   (b) For purposes of this chapter, the following expenditures are not independent expenditures and, unless an exception is otherwise set forth in this title, shall be considered contributions to a candidate if they result in communications that expressly advocate that candidate's election or the defeat of that candidate's opponent:
   (1) An expenditure made by a political party.
   (2) An expenditure in which there is any arrangement, coordination, or direction with respect to the expenditure between the candidate or the candidate's agent and the person making the expenditure.
   (3) An expenditure in which, in the calendar year in which the election is to be held, the person making the expenditure is or has been: (A) authorized to raise or expend funds on behalf of the candidate or the candidate's controlled committee; or (B) serving as a member, employee, or agent of the candidate's controlled committee in an executive or policymaking position.
   (4) An expenditure in which the person making the expenditure retains the professional services of any individual or other person who is also providing professional services in the same election to the candidate in connection with the candidate's pursuit of nomination for election, or election, to office, including any services relating to the candidate's decision to seek office. ''Professional services" shall include any services in support of any candidate's pursuit of nomination for election, or election, to office.
   (c) For purposes of this section, the person making the expenditure shall include any officer, director, employee, or individual involved in making the expenditure for purposes of this subdivision.
   (d) For purposes of this chapter, ''express advocacy" means a communication which when taken as a whole and with limited reference to external events is an expression of support for, or opposition to, the election of a clearly identified candidate, a specific group of candidates, or candidates of a particular political party.
   (e) Any independent expenditure is not considered a contribution to or an expenditure by or on behalf of the candidate with whom it is identified for the purposes of the limitations specified in this chapter.
   (f) Any person who violates this section shall be strictly liable under Chapter 11 (commencing with Section 91000).
   85408. (a) Any person who makes independent expenditures in support of or in opposition to a clearly identified candidate in the aggregate amount of one thousand dollars ($1,000) or more per election shall notify the filing officer and all candidates running for the same office within 24 hours by facsimile transmission or other electronic medium prescribed by the commission or local elections authority designated by the commission, and by overnight delivery for each subsequent independent expenditure that is five thousand dollars ($5,000) or more.
   (b) No person, except a Citizen Contribution Committee, shall contribute more than two hundred dollars ($200) to any committee which makes independent expenditures greater than one thousand dollars ($1,000) per election in support of or in opposition to a clearly identified candidate. A Citizen Contribution Committee shall be limited to contributing to any committee which makes independent expenditures greater than one thousand dollars ($1,000) per election in support of or in opposition to a clearly identified candidate no more than the maximum amount that can be contributed by 100 individuals to such committee.
   85409. Upon filing a statement of organization under Section 84101, a committee shall be charged a registration fee of one hundred dollars ($100) per calendar year. This registration fee shall be paid to the Secretary of State for the purpose of administering this chapter.

LOBBYIST PROVISIONS

SEC. 3. Section 82039 of the Government Code is repealed.
    82039. ''Lobbyist" means any individual who is employed or contracts for economic consideration, other than reimbursement for reasonable travel expenses, to communicate directly or through his or her agents with any elective state official, agency official or legislative official for the purpose of influencing legislative or administrative action, if a substantial or regular portion of the activities for which he or she receives consideration is for the purpose of influencing legislative or administrative action. No individual is a lobbyist by reason of activities described in Section 86300.

SEC. 4. Section 82039 is added to the Government Code, to read:
    82039. ''Lobbyist" means any individual who either receives five hundred dollars ($500) or more in any calendar month per calendar year in economic consideration from another person, or who, regardless of any economic consideration, is an employee, professional, or agent, and whose principal and substantial duties in that capacity are, to communicate directly with any elective state official, agency official, or designated employee as defined in Section 82019 for the purpose of influencing legislative or administrative action. No individual is a lobbyist by reason of activities described in Section 86300. For purposes of this section, reimbursement solely for reasonable travel expenses is not economic consideration. For purposes of this section, neither the rule preventing disclosure of an attorney's work product nor any privilege against disclosure based on the attorney-client relationship shall apply to any required report or disclosure under this title, unless expressly required by the United States Constitution or the California Constitution.

SEC. 5. Section 86102 of the Government Code is amended to read:
   86102. Each lobbying firm and lobbyist employer required to file a registration statement under this chapter may shall be charged not more than twenty-five dollars ($25) one hundred dollars ($100) per year for each lobbyist required to be listed on its registration statement.

SEC. 6. Section 86203 of the Government Code is amended to read:
   86203. It shall be unlawful for a lobbyist, or lobbying firm, to make gifts to one person aggregating more than ten dollars ($10) in a calendar month, or to act as an agent or intermediary in the making of any gift, or to arrange for the making of any gift by any other person a gift, to act as an agent or intermediary in the making of a gift, or to arrange for the making of a gift by any other person .

SEC. 7. Section 17221 is added to the Revenue and Taxation Code, to read:
    17221. (a) Notwithstanding Section 17201, no deduction shall be allowed for any expenses paid or incurred during the taxable year as described in Section 162(e)(1) of the Internal Revenue Code, relating to appearances before, submission of statements to, or sending communications to, any employee or officer of the legislative branch or the executive branch of the state, or any political subdivision thereof, with respect to any rulemaking or any quasi-legislative function of the executive branch of the state or any political subdivision thereof.
   (b) For purposes of this section, the expenses described by Section 162(e)(1) of the Internal Revenue Code shall include ''lobbying expenditures" as defined in Section 4911(c)(1) of the Internal Revenue Code, and shall also include as a ''lobbying expenditure" any expenditure incurred in attempting to influence any action of the legislative branch or executive branch of any government by communication with any employee, officer, member, or agency of the executive branch of federal, state, or local government, or any other similar governing body.

SEC. 8. Section 24335 is added to the Revenue and Taxation Code, to read:
    24335. (a) No deduction shall be allowed for any expenses paid or incurred in the taxable year as described in Section 162(e)(1) of the Internal Revenue Code, relating to appearances before, submission of statements to, or sending communications to, any employee or officer of the legislative branch or the executive branch of the state, or any political subdivision thereof, with respect to any rulemaking or any quasi-legislative function of the executive branch of the state or any political subdivision thereof.
   (b) For purposes of this section, the expenses described by Section 162(e)(1) of the Internal Revenue Code shall include ''lobbying expenditures" as defined in Section 4911(c)(1) of the Internal Revenue Code, and shall also include as a ''lobbying expenditure" any expenditure incurred in attempting to influence any action of the legislative branch or executive branch of any government by communication with any employee, officer, member, or agency of the executive branch of the federal, state, or local government, or any other similar governing body.

DISCLOSURE IN CAMPAIGN ADVERTISEMENTS

SEC. 9. Article 5 (commencing with Section 84501) is added to Chapter 4 of Title 9 of the Government Code, to read:

Article 5. Disclosure in Campaign Advertisements

   84501. (a) ''Advertisement" means any general or public advertisement which is authorized and paid for by a person or committee for the purpose of supporting or opposing one or more ballot measures or an independent expenditure supporting or opposing one or more candidates for office. (b) ''Advertisement" does not include a communication from an organization to its members, electronic broadcasts of less than 15 seconds, or other small advertisements as determined by regulations of the commission.
   (c) ''Advertisement" includes phone banks where the caller is paid; but not where the caller is a volunteer, even if the phone charges are paid by the committee.
   (d) ''Cumulative contributions" means the cumulative contributions to a committee beginning the first day the statement of organization is filed under Section 84101 and ending within seven days of the time the advertisement is sent to the printer, broadcast station, or other person doing the advertising. 84502. (a) Any advertisement as defined in Section 84501 shall include a disclosure statement identifying any person whose cumulative contributions are fifty thousand dollars ($50,000) or more in a statewide campaign, or twenty-five thousand dollars ($25,000) or more in nonstatewide campaigns to the committee placing the advertisement.
   (b) The disclosure for individuals shall read ''major funding by: (name and occupation)." The disclosure for nonindividuals shall read ''major funding by: (name and business interest)." The commission shall issue regulations defining ''occupation" and ''business interest," including regulations regarding the omission of the business interest disclosure when the name of a nonindividual fully describes the business interest.
   (c) If there are more than three donors of twenty-five thousand dollars ($25,000) or more, the committee is only required to disclose the highest, second highest, and third highest in that order. If more than three donors contribute twenty-five thousand dollars ($25,000) or more in equal amounts, the committee is required to disclose those contributors in chronological order.
   (d) If the committee has received at least one quarter of its cumulative contributions from outside the jurisdiction where the election is being held, the disclosure shall state ''major funding from out-of-state (city, county, or district, etc.) contributors." 84503. (a) Any committee which supports or opposes one or more ballot measures shall name and identify itself using a name or phrase that clearly identifies the economic or other special interest of its major donors of twenty-five thousand dollars ($25,000) or more in any reference to the committee required by law, including, but not limited to, its statement of organization pursuant to Section 84101.
   (b) If the major donors of twenty-five thousand dollars ($25,000) or more share a common employer, the identity of the employer shall also be disclosed.
   (c) Any committee which supports or opposes a ballot measure shall print or broadcast its name as provided in this section as part of any advertisement.
   (d) If candidates or their controlled committees, as a group or individually, meet the contribution thresholds for a person, they shall be identified by the candidate's name. 84504. Any disclosure statement required by this article shall be printed clearly and legibly and in a conspicuous manner as defined by the commission, prominently on the front page of any written advertisement (including outdoor advertisements) or, if the communication is broadcast or spoken, the information shall be spoken so as to be clearly audible and understood by the intended public. The commission shall issue regulations to ensure that all disclosures required by this article shall stand alone, that is, they shall not have any other words or materials mixed in with them.

CONFLICT OF INTEREST

SEC. 10. Section 83116.5 of the Government Code is amended to read:
   83116.5. Any person who violates any provision of this title, who purposely or negligently causes any other person to violate any provision of this title, or who aids and abets any other person in the violation of any provision of this title, shall be liable under the provisions of this chapter title . Provided, however, that However, unless specified otherwise in this title, this section shall apply only to persons who have filing or reporting obligations under this title, or who are compensated for services involving the planning, organizing, or directing of any activity regulated or required by this title , and that a violation of this section shall not constitute an additional violation under Chapter 11 .

SEC. 11. Section 84308 of the Government Code is amended to read:
   84308. (a) The definitions set forth in this subdivision shall govern the interpretation of this section.
   (1) ''Party" means any person who files an application for, or is the subject of, a proceeding involving a license, permit, or other entitlement for use.
   (2) ''Participant" means any person who is not a party but who actively supports or opposes a particular decision in a proceeding involving a license, permit, or other entitlement for use and who has a financial interest in the decision, as described in Article 1 (commencing with Section 87100) of Chapter 7. A person actively supports or opposes a particular decision in a proceeding if he or she lobbies in person the officers or employees of the agency, testifies in person before the agency, or otherwise acts to influence officers of the agency.
   (3) ''Agency" means an agency as defined in Section 82003 except that it does not include the courts or any agency in the judicial branch of government, local governmental agencies whose members are directly elected by the voters, the Legislature, the Board of Equalization, or elected constitutional officers. However, this section applies to any person who is a member of an exempted agency but is acting as a voting member of another agency.
   (4) ''Officer" means any elected or appointed officer of an agency, any alternate to an elected or appointed officer of an agency, and any candidate for elective office in an agency.
   (5) ''License, permit, or other entitlement for use" means all business, professional, trade and land use licenses and permits and all other entitlements for use, including all entitlements for land use, all contracts (other than competitively bid, labor, or personal employment contracts), and all franchises and includes any proceedings affecting a rate, price, or premium that a licensee, permittee, or person may charge .
   (6) ''Contribution" includes contributions to candidates and committees in federal, state, or local elections.
   (b) No officer of an agency shall accept, solicit, or direct a contribution of more than two hundred fifty dollars ($250) from any party, or his or her agent, or from any participant, or his or her agent, while a proceeding involving a license, permit, or other entitlement for use is pending before the agency and for three months following the date a final decision is rendered in the proceeding if the officer knows or has reason to know that the participant has a financial interest, as that term is used in Article 1 (commencing with Section 87100) of Chapter 7. This prohibition shall apply regardless of whether the officer accepts, solicits, or directs the contribution for himself or herself, or on behalf of any other officer, or on behalf of any candidate for office or on behalf of any committee.
   (c) Prior to rendering any decision in a proceeding involving a license, permit or other entitlement for use pending before an agency, each officer of the agency who received a contribution within the preceding 12 months in an amount of more than two hundred fifty dollars ($250) one hundred dollars ($100) from a party or from any participant shall disclose that fact on the record of the proceeding. No officer of an agency shall make, participate in making, or in any way attempt to use his or her official position to influence the decision in a proceeding involving a license, permit, or other entitlement for use pending before the agency if the officer has willfully or knowingly received a contribution in an amount of more than two hundred fifty dollars ($250) two hundred dollars ($200) within the preceding 12 months from a party or his or her agent, or from any participant, or his or her agent if the officer knows or has reason to know that the participant has a financial interest in the decision, as that term is described with respect to public officials in Article 1 (commencing with Section 87100) of Chapter 7. If an officer receives a contribution which would otherwise require disqualification under this section, returns the contribution within 30 days from the time he or she knows, or should have known, about the contribution and the proceeding involving a license, permit, or other entitlement for use, he or she shall be permitted to participate in the proceeding.
   (d) A party to a proceeding before an agency involving a license, permit, or other entitlement for use shall disclose on the record of the proceeding any contribution in an amount of more than two hundred fifty dollars ($250) one hundred dollars ($100) made within the preceding 12 months by the party, or his or her agent, to any officer of the agency. No party, or his or her agent, to a proceeding involving a license, permit, or other entitlement for use pending before any agency and no participant, or his or her agent, in the proceeding shall make a contribution of more than two hundred fifty dollars ($250) to any officer of that agency during the proceeding and for three months following the date a final decision is rendered by the agency in the proceeding. When a closed corporation is a party to, or a participant in, a proceeding involving a license, permit, or other entitlement for use pending before an agency, the majority shareholder is subject to the disclosure and prohibition requirements specified in subdivisions (b), (c), and this subdivision.
   (e) Nothing in this section shall be construed to imply that any contribution subject to being reported under this title shall not be so reported. In addition, nothing in this section shall be construed to authorize the making or acceptance of any contribution in excess of any contribution limitation set forth in this title. Any violation of the disclosure provisions of either subdivision (c) or (d) creates a rebuttable presumption that the action shall be void in an action brought pursuant to Chapter 11 (commencing with Section 91000).

SEC. 12. Section 87102 of the Government Code is amended to read:
   87102. The requirements of Section 87100 are in addition to the requirements of Articles 2 (commencing with Section 87200) and 3 (commencing with Section 87300) and any Conflict of Interest Code adopted thereunder. Except as provided in Section 87102.5, the The remedies provided in Chapters 3 (commencing with Section 83100) and 11 (commencing with Section 91000) shall not be applicable to elected state officers for violations or threatened violations of this article Section 87100 only under the conditions set forth in Sections 87102.5, 87102.6, and 87102.8, as applicable .

SEC. 13. Article 1 (commencing with Section 89500) of Chapter 9.5 of Title 9 of the Government Code is repealed.

SEC. 14. Article 2 (commencing with Section 89504) of Chapter 9.5 of Title 9 of the Government Code is repealed.

SEC. 15. Article 3 (commencing with Section 89506) of Chapter 9.5 of Title 9 of the Government Code is repealed. DISPOSITION OF CAMPAIGN FUNDS

SEC. 16. The heading of Article 4 (commencing with Section 89510) of Chapter 9.5 of Title 9 of the Government Code is amended to read:

Article 4 2 . Campaign Funds

SEC. 17. Section 89519 of the Government Code is repealed.
    89519. Upon leaving any elected office, or at the end of the postelection reporting period following the defeat of a candidate for elective office, whichever occurs last, campaign funds raised after January 1, 1989, under the control of the former candidate or elected officer shall be considered surplus campaign funds and shall be disclosed pursuant to Chapter 4 (commencing with Section 84100) and shall be used only for the following purposes:
   (a) (1) The payment of outstanding campaign debts or elected officer's expenses.
   (2) For purposes of this subdivision, the payment for, or the reimbursement to the state of, the costs of installing and monitoring an electronic security system in the home or office, or both, of a candidate or elected officer who has received threats to his or her physical safety shall be deemed an outstanding campaign debt or elected officer's expense, provided that the threats arise from his or her activities, duties, or status as a candidate or elected officer and that the threats have been reported to and verified by an appropriate law enforcement agency. Verification shall be determined solely by the law enforcement agency to which the threat was reported. The candidate or elected officer shall report any expenditure of campaign funds made pursuant to this section to the commission. The report to the commission shall include the date that the candidate or elected officer informed the law enforcement agency of the threat, the name and phone number of the law enforcement agency, and a brief description of the threat. No more than five thousand dollars ($5,000) in surplus campaign funds may be used, cumulatively, by a candidate or elected officer pursuant to this subdivision. Payments made pursuant to this subdivision shall be made during the two years immediately following the date upon which the campaign funds became surplus campaign funds. The candidate or elected officer shall reimburse the surplus campaign fund account for the fair market value of the security system no later than two years immediately following the date upon which the campaign funds become surplus campaign funds, upon sale of the property on which the system is installed, or prior to the closing of the surplus campaign fund account, whichever comes first. The electronic security system shall be the property of the campaign committee of the candidate or elected officer.
   (b) The pro rata repayment of contributions.
   (c) Donations to any bona fide charitable, educational, civic, religious, or similar tax- exempt, nonprofit organization, where no substantial part of the proceeds will have a material financial effect on the former candidate or elected officer, any member of his or her immediate family, or his or her campaign treasurer.
   (d) Contributions to a political party or committee so long as the funds are not used to make contributions in support of or opposition to a candidate for elective office.
   (e) Contributions to support or oppose any candidate for federal office, any candidate for elective office in a state other than California, or any ballot measure.
   (f) The payment for professional services reasonably required by the committee to assist in the performance of its administrative functions, including payment for attorney's fees for litigation which arises directly out of a candidate's or elected officer's activities, duties, or status as a candidate or elected officer, including, but not limited to, an action to enjoin defamation, defense of an action brought of a violation of state or local campaign, disclosure, or election laws, and an action arising from an election contest or recount.

SEC. 18. Section 89519 is added to the Government Code, to read:
    89519. After a candidate withdraws from or is defeated in an election for, or is elected to, an office for which he or she has filed a statement of intention to be a candidate for elective office pursuant to Section 85200, Section 85313 shall govern the disposition of his or her campaign funds raised for that election.

ENFORCEMENT

SEC. 19. Section 91002 of the Government Code is amended to read:
   91002. (a) No person convicted of a misdemeanor under this title shall be a candidate for any elective office or act as a lobbyist for a period of four years following the date of the conviction unless the court at the time of sentencing specifically determines that this provision shall not be applicable. A plea of nolo contendere shall be deemed a conviction for purposes of this section. Any person violating this section is guilty of a felony.
    (b) Any person, having previously been convicted of a misdemeanor under this title and subject to Section 91002, may, in the discretion of the criminal prosecutor, be charged for any subsequent violation with a misdemeanor or a felony.
   (c) Any person who has previously been fined twice under any provision or provisions of this title shall immediately upon entry of a final judgment or issuance of an order imposing a fine in the third such action, be removed from any public office held in the state pursuant to Section 1770, have their name stricken from the registration list maintained under Article 1 (commencing with Section 86100) of Chapter 6, and thereafter may not be a candidate for any elective office or act as a lobbyist, lobbying firm, or lobbyist employer.

SEC. 20. Section 91003 of the Government Code is amended to read:
   91003. (a) Any person residing in the jurisdiction may sue for injunctive relief to enjoin violations or to compel compliance with the provisions of this title. The court may in its discretion require any plaintiff other than the commission to file a complaint with the commission prior to seeking injunctive relief. The court may award to a plaintiff or defendant who prevails his or her costs of litigation, including reasonable attorney's fees.
    (a) Any resident registered to vote in the jurisdiction may sue for injunctive relief or a temporary restraining order to enjoin violations or to compel compliance with the provisions of this title. The matter shall be given priority on the court's calendar and shall be heard at the earliest possible time with the purpose that any action, conduct, misconduct, or failure to act, report, disclose, or take any other action required by this title be remedied so as not to in any way prejudice the voters or the election. The court may in its discretion require any plaintiff other than the commission to file a complaint with the commission but that decision shall in no way divest the court of jurisdiction to hear the matter or delay the issuance of any appropriate relief. In any action to enforce this title, the court shall award to a plaintiff who prevails his or her costs of litigation, including reasonable attorney's fees. The court may award to a defendant who prevails his or her costs of litigation, including reasonable attorney's fees, only if the court finds, on the record, that the matter was frivolous, or brought in bad faith or for some other improper purpose. The provisions of Section 425.16 of the Code of Civil Procedure shall not apply to any action filed pursuant to this section.
   (b) Upon a preliminary showing in an action brought by a person residing in the jurisdiction pursuant to this section that a violation of Article 1 (commencing with Section 87100), Article 4 (commencing with Section 87400), or Article 4.5 (commencing with Section 87450) of Chapter 7 of this title or of a disqualification provision of a Conflict of Interest Code has occurred, the court may restrain the execution of any official action in relation to which such a violation occurred, pending final adjudication. If it is ultimately determined that a violation has occurred and that the official action might not otherwise have been taken or approved, the court may set the official action aside as void. The official actions covered by this subsection subdivision include, but are not limited to orders, permits, resolutions and contracts, but do not include the enactment of any state legislation. In considering the granting of preliminary or permanent relief under this subsection subdivision , the court shall accord due weight to any injury that may be suffered by innocent persons relying on the official action.

SEC. 21. Section 91004 of the Government Code is amended to read:
   91004. Any Unless specifically provided otherwise in this title, any person who intentionally or negligently violates any of the reporting requirements of this act title shall be liable in a civil action brought by the civil prosecutor or by a person residing registered voter within the jurisdiction for an amount not more than three times the amount or value not properly reported.

SEC. 22. Section 91005 of the Government Code is amended to read:
   91005. (a) Any Unless specifically provided otherwise in this title, any person who makes or , receives , or fails to properly disclose or report a contribution, gift , or expenditure in violation of Section 84300, 84304, 86202, 86203, or 86204 this title is liable in a civil action brought by the civil prosecutor or by a person residing registered voter within the jurisdiction for an amount up to five hundred dollars ($500) or three times the amount of the unlawful contribution, gift or , expenditure, or failure to disclose or report, whichever is greater.
   (b) Any designated employee or public official specified in Section 87200 , other than an elected state officer, who realizes an economic benefit as a result of a violation of Section 87100 or of a disqualification provision of a Conflict of Interest Code is liable in a civil action brought by the civil prosecutor or by a person residing registered voter within the jurisdiction for an amount up to three times the value of the benefit.

SEC. 23. Section 91005.5 of the Government Code is amended to read:
   91005.5. Any person who violates any provision of this title , except Sections 84305, 84307, and 89001 , for which no specific civil penalty is provided, shall be liable in a civil action brought by the commission or the , district attorney, or a registered voter pursuant to subdivision (b) of Section 91001, or the elected city attorney pursuant to Section 91001.5, for an amount up to two thousand dollars ($2,000) , to be distributed pursuant to Section 91009 . No civil action alleging a violation of this title may be filed against a person pursuant to this section if the criminal prosecutor is maintaining a criminal action against that person pursuant to Section 91000. The provisions of this section shall be applicable only as to violations occurring after the effective date of this section.

SEC. 24. Section 91006 of the Government Code is amended to read:
   91006. Any person who aids and abets any person who violates any of the requirements of this title shall also be liable under Sections 91004, 91005, and 91005.5. If two or more persons are responsible for any violation, they shall be jointly and severally liable. In addition, for any violation of any campaign reporting, contribution, or expenditure requirement, the candidate shall also be liable for the violation unless someone other than the candidate was responsible for the violation and acted without the candidate's, treasurer's, and campaign manager's knowledge or consent, and acted wholly outside the scope of the person's duties and authorization.

SEC. 25. Section 91007 of the Government Code is amended to read:
   91007. (a) Any person, before filing a civil action pursuant to Sections Section 91004 and , 91005, must first or 91005.5, may also file with the civil prosecutor a written request for the civil prosecutor to commence the action. The request shall include a statement of the grounds for believing a cause of action exists. The civil prosecutor shall respond within forty 40 days after receipt of the request, indicating whether he intends to file a civil action. If the civil prosecutor indicates in the affirmative, and files suit within forty 40 days thereafter, the action shall be consolidated with an action brought by the registered voter and no other action may be brought unless the action brought by the civil prosecutor is actions are dismissed without prejudice as provided for in Section 91008.
   (b) Any person filing a complaint, cross-complaint or other initial pleading in a civil action pursuant to Sections 91003, 91004, 91005, or 91005.5 shall, within 10 days of filing the complaint, cross-complaint, or initial pleading, serve on the Fair Political Practices Commission a copy of the complaint, cross-complaint, or initial pleading or a notice containing all of the following:
   (1) The full title and number of the case.
   (2) The court in which the case is pending.
   (3) The name and address of the attorney for the person filing the complaint, cross-complaint, or other initial pleading.
   (4) A statement that the case raises issues under the Political Reform Act.
   (c) No complaint, cross-complaint, or other initial pleading shall be dismissed for failure to comply with subdivision (b).
    (d) No civil action, once filed under Section 91004, 91005, or 91005.5, may be dismissed without leave of court upon a showing of either of the following:
   (1) The plaintiff has determined, in good faith, that the matter is without substantial merit or it is otherwise not in the public interest to continue the action, and that the plaintiff has neither received nor agreed to any payment, inducement, consideration, or any act or forbearance by any defendant or his or her agent, other than payment of costs of litigation and reasonable attorney's fees.
   (2) The parties have determined to compromise and enter into a settlement of some or all of the disputed claims and the court, after hearing, determines that the settlement is in the public interest. Any settlement or compromise approved by the court shall be deemed to be a finding of violation for purposes of subdivision (c) of Section 91002 and Section 91009.

SEC. 26. Section 91012 of the Government Code is amended to read:
   91012. The court may shall award to a plaintiff or defendant other than an agency, who prevails in any action authorized by this title his or her costs of litigation, including reasonable attorney's fees. On motion of any party, a court shall require a private plaintiff to post a bond in a reasonable amount at any stage of the litigation to guarantee payment of costs. The court may award to a defendant other than an agency who prevails in any action authorized by this title his or her costs of litigation, including reasonable attorney's fees, only if the court finds, on the record, that the matter was frivolous, or brought in bad faith or for some other improper purpose. The provisions of Section 425.16 of the Code of Civil Procedure shall not apply to any action filed pursuant to Section 91004, 91005, or 91005.5.

SEC. 27. Section 91015 of the Government Code is repealed.
    91015. The provisions of this chapter shall not apply to violations of Section 83116.5.

MISCELLANEOUS PROVISIONS

SEC. 28. There is hereby appropriated annually from the General Fund the sum of three cents ($0.03) per individual of the voting age population in the state, to be adjusted to reflect changes in the Cost of Living Index in January of each even-numbered year after the operative date of this act, for expenditures to support the operations of the Fair Political Practices Commission in administering and enforcing this title. The Franchise Tax Board shall, as soon as possible after the end of the first calendar year in which Sections 17221 and 24335 of the Revenue and Taxation Code have been in effect, calculate the amount of the increased tax revenues to the state as a result of these sections. From the amount so calculated, the Controller shall, for each fiscal year, transfer to the commission, from the General Fund, the amount necessary to meet the appropriation to the commission set forth above. In any event, regardless of whether the increased revenue from Sections 17221 and 24335 of the Revenue and Taxation Code is sufficient, the Legislature shall provide the appropriation to the commission set forth above. To the extent the Legislature provides budgetary support for local agencies for administration and enforcement of this title, the amount of increased tax revenues to the state as a result of Section 86102 of the Government Code shall also be provided for this purpose. If any provision of this title is challenged successfully in court, any attorney's fees and costs awarded shall be paid from the General Fund and shall not be assessed or otherwise offset against the Fair Political Practices Commission budget. Any savings or revenues derived from this title shall be applied to the Anti-Corruption Act of 1996 Enforcement Fund to pay costs related to the administration and enforcement of the title, with the remainder to be placed in the General Fund for general purposes.

SEC. 29. If any provision of this law, or the application of that provision to any person or circumstances, shall be held invalid, the remainder of this law to the extent that it can be given effect, or the application of that provision to persons or circumstances other than those as to which it was held invalid, shall not be affected thereby, and to this extent the provisions of this law are severable. In addition, if the expenditure limitations of Section 85401 of this act shall not be in effect, the contribution limits of Sections 85301, 85302, 85303, and 85304 shall remain in effect.

SEC. 30. This law shall become effective November 6, 1996. In the event that this measure and another measure or measures relating to campaign finance reform in this state shall appear on the statewide general election ballot on November 5, 1996, the provisions of these other measures shall be deemed to be in conflict with this measure. In the event that this measure shall receive a greater number of affirmative votes, the provisions of this measure shall prevail in their entirety, and the provisions of the other measure or measures shall be null and void in their entirety. In the event that the other measure or measures shall receive a greater number of affirmative votes, the provisions of this measure shall take effect to the extent permitted by law.