SB 201

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 person 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 person 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 person 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

all reportable communications.

The bill also requires a special report by any campaign finance registrant who

makes or incurs an obligation to make a mass communication that becomes

reportable under the bill within 60 days of a primary or other election in an amount

greater than $500 cumulatively since the date of the registrant's last report. The

special report must be made within 24 hours after the date that disbursements or

obligations that exceed $500 cumulatively are made or incurred and must include

the information that would otherwise be reported on the registrant's next regular

report in the form prescribed by Government Accountability Board.

Under current law, violators of registration and reporting requirements are

subject to a forfeiture (civil penalty) of not more than $500 for each violation. In

addition, any person who is delinquent in filing a report is subject to a forfeiture of

not more than $50 or 1 percent of the annual salary of the office for which a candidate

is being supported or opposed, whichever is greater, for each day of delinquency.

Intentional violators of the registration requirements and persons who intentionally

file false reports or statements may be fined not more than $1,000 or imprisoned for

not more than six months, or both, if the violation involves less than $100 in amount

or value, and may be fined not more than $10,000 or imprisoned for not more than

three years and six months, or both, if the violation involves more than $100 in