AB 605

This bill makes various changes to the campaign finance laws, including all of

the following:

1. The bill requires a nonprofit social welfare organization that is engaged in

acts for political purposes to register with the Government Accountability Board

(GAB). The bill also requires the organization to report to the GAB the percentage

of its total expenditures that are paid as disbursements for the purpose of influencing

the election or nomination for election of any individual to state or local office or for

the purpose of influencing the recall from or retention in office of an individual

holding a state or local office. In addition, if the total amount of the entity's

disbursements for political purposes exceeds $5,000 in a calendar year, the entity

shall include in its report an itemized statement of every disbursement exceeding

$300, together with the name and address of the person to whom the disbursement

was made, and the date and specific purpose for which the disbursement was made.

2. This bill prohibits an individual from making contributions in excess of

$10,000 in any calendar year to a committee that makes electioneering

communications or expressly advocates the election or defeat of a clearly identified

candidate. The bill also prohibits an individual from making contributions in excess

of $10,000 in any calendar year to a political party.

3. Under current law, 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 additional registration and reporting

requirements on any committee who, within 60 days of an election, makes any mass

communication, including an electronic communication, a mass distribution, or a

mass telephoning, that includes a reference to a clearly identified candidate at that

election. In addition, the bill requires a committee who 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

committee had been registered with respect to any obligation incurred or

disbursement made for the purpose of making such a communication prior to

registration. The bill, however, does not require registration and reporting if the

communication is made by a corporation, cooperative, or nonpolitical voluntary

association and is limited to the corporation's, cooperative's, or association's

members, shareholders, or subscribers.

The change in the scope of reportable activity under the bill also applies to

contribution and disbursement (spending) limitations and restrictions by causing

reportable "contributions," "obligations," and "disbursements" to include the cost of