SB 654

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. Currently, in the case of a committee or group

that is organized primarily for the purpose of influencing the election or nomination

for election of any individual to state or local office, for the purpose of influencing the

recall from or retention in office of an individual holding a state or local office, or for

the purpose of influencing a particular vote in a referendum, all administrative and

overhead expenses for the maintenance of an office or staff that are used principally

for any such purpose are deemed to be for a political purpose.

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 an expenditure made by an individual other than a

candidate, or by an organization that is not organized exclusively for a political

purpose if the expenditure does not expressly advocate for the election or defeat of

a clearly identified candidate or the adoption or rejection of a question at a

referendum. In addition, under the bill, administrative and overhead expenses by

a committee or group are deemed to be for a political purpose only if the committee

or group is organized exclusively for the purpose of influencing an election or

nomination, a recall or retention in office, or a particular referendum vote. 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.