AB 812

Under current law, corporations and cooperatives are prohibited from making

contributions or disbursements (expenditures) in campaigns for state or local office.

Violators are subject to a forfeiture (civil penalty) of not more than $500 for each

violation. Intentional violators are guilty of a Class I felony, which is punishable by

a fine of not more than $10,000 or imprisonment for three and one-half years, or

both, except that if a violation involves $100 or less, the violation is punishable as

a misdemeanor with a fine of not more than $1,000 or imprisonment for not more

than six months, or both. A recent decision of the U.S. Supreme Court has cast doubt

about whether this law is enforceable. See

Citizens United v. F.E.C.

, Case No. 08-205

(2010).

This bill deletes the current prohibition on disbursements by corporations and

cooperatives. The bill provides, however, that before a corporation or cooperative

may make a disbursement or incur an obligation to make a disbursement for the

purpose of influencing an election for state or local office, the corporation or

cooperative must file with its registration statement and maintain on file with the

appropriate filing officer or agency: 1) a copy of a document that is satisfactory to the

Government Accountability Board, reflecting action taken not more than two years

previous to the time that any disbursement is made or any obligation to make a

disbursement is incurred, demonstrating that the corporation or cooperative has

received the approval of a majority of its voting shares or members who are entitled

to elect the board of directors for the corporation or cooperative to make

disbursements and incur obligations to make disbursements for the purpose of

influencing an election for state or local office; or 2) a statement that the corporation

or cooperative has no shareholders or members.

Currently, individuals who accept contributions, organizations that make or

accept contributions, and individuals who or organizations that incur obligations or

make disbursements for the purpose of influencing an election for state or local office

are generally required to register with the appropriate filing officer and to file

financial reports with that officer, regardless of whether they act in conjunction with

or independently of any candidate who is supported or opposed.

With certain exceptions, this bill imposes registration and reporting

requirements, in addition, upon any individual who and organization that, within

60 days of an election and by means of communications media, makes any

communication that includes a reference to a candidate at that election, an office to

be filled at that election, or a political party. The bill also requires an individual who

or organization that becomes subject to a registration requirement by making such

a communication to report, upon registration, the information that would have been

required to be reported if the individual or organization had been registered with