AB 225

This bill makes various changes in the campaign finance, election, and lobbying

regulation laws. Significant provisions include:

campaign finance

Disclosure of political activity

Currently, with certain exceptions, 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 required to register with the

appropriate filing officer or agency and to file financial reports with that officer or

agency, regardless of whether they act in conjunction with or independently of any

candidate who is supported or opposed.

This bill provides that registration and reporting requirements apply to any

communication that contains certain explicit terms with reference to a clearly

identified candidate that expressly advocates the election or defeat of that candidate

and unambiguously relates to that candidate. The bill also provides that these

requirements do not apply to a communication made by an individual other than a

candidate, or by an organization not organized exclusively for a political purpose and

the communication does not expressly advocate the election or defeat of a clearly

identified candidate or the adoption or rejection of a question at a referendum. The

change in the scope of reportable activity under the bill also affects contribution

limitations and prohibitions by causing the term "contribution" to exclude the cost

of any communication that is not reportable under the bill.

Corporations, cooperatives, and other entities; limited political activity

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 not more than 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

casts doubt upon whether this law is enforceable as it applies to disbursements. See

Citizens United v. F.E.C.

, 130 S. Ct. 876 (2010). Current law also provides that if an

individual other than a candidate or an organization that is not organized primarily

for political purposes does not engage in express advocacy with respect to a clearly

identified candidate or referendum question and does not make any contributions,

the individual or organization is exempt from registration and reporting

requirements.

This bill deletes the current prohibition on disbursements by corporations and