Recommendations from the Ethics Commission regarding campaign finance, lobbying, open records, and closed sessions. (FE)

Second candidate committee Current law allows, but does not require, an individual who holds a state or local elective office and who seeks a different state or local elective office to form a second candidate committee. Otherwise current law prohibits a candidate from having more than one candidate committee at the same time. For individuals who establish a second candidate committee, as provided under current law, the bill specifies the methods for transferring funds between the two committees, how to report those transfers, and how to dispose of funds remaining when one or both committees terminate.

Conduit; residual funds Under current law, a conduit must also register with the commission. A conduit is an entity that receives a contribution from an individual, deposits that contribution in an account held by the entity, and disburses that contribution to a political committee at the direction of the individual who made the contribution. The bill specifies what the conduit must do with funds remaining in its possession when the conduit terminates. Under current law, the conduit must first make a good faith effort to return remaining funds to the original contributors, their surviving spouses, or the executors of their estates. Under the bill, if the terminating conduit is unsuccessful in contacting the individuals who made the original contributions, their surviving spouses, or the executors of their estates, the conduit may donate those remaining funds to the common school fund or to a charitable organization.

However, the conduit may not donate remaining funds to a charitable organization that is affiliated with the conduit or a sponsoring organization. Current law defines a sponsoring organization as an entity that establishes, administers, or financially supports a political action committee or an independent expenditure committee.

Administrative suspension Under current law, a committee that does not anticipate accepting or making contributions, making disbursements, or incurring obligations in an aggregate amount exceeding $2,500 in a calendar year may claim an exemption from filing campaign finance reports by filing a registration statement or an amended registration statement specifying the facts necessary to claim the exemption. The committee must file a statement each year in which it wishes to claim the exemption until such time as the committee files a termination report.

The bill allows a filing agent to terminate any committee that has been exempt from filing campaign finance reports for more than three years. The bill also authorizes the commission to suspend a committee that does not respond to notices and communications sent by the commission.

Reporting of express advocacy Under current law, a political action committee, independent expenditure committee, or a person other than a committee that spends $2,500 or more on express advocacy for a candidate at an election must report required information to the commission. This information includes the dates on which disbursements were made, the name and address of the persons who received the disbursements, the purpose for making the disbursements, and the amount spent for each act of express advocacy.

The bill clarifies that the reporting requirement applies to express advocacy that will occur during the period beginning 60 days prior to the election and ending on the day of the election. The bill provides that the required information also includes the dates on which obligations were incurred, the name and address of the obligees, the purpose for incurring the obligations, and the amount incurred for each act of express advocacy.

Conduit filing fee Under current law, each conduit that is required to register and report must have and file with the commission required registration statements and reports. The bill provides that each conduit must pay an annual filing fee of $100 to the commission by January 15 of each year. The bill provides that this requirement does not apply to a conduit in a year in which the conduit does not release contributions totaling more than $2,500.

lobbying Current law allows a lobbyist to make a personal contribution to a partisan elective state official or a candidate for an elective state office between the first day authorized by law for the circulation of nomination papers as a candidate at a general election or special election and the day of the general election or special election. The bill clarifies that the special election must be an election to fill a vacancy in a state office.

open records Current law provides that certain records in the possession of the commission are not open for public inspection. Those records include, with limited exceptions, statements of economic interests filed by members of the investment board and the social security numbers of individuals who apply for a lobbyist license. Under the bill, with certain exceptions, records created in the course of conducting an audit to identify a potential violation of the laws administered by the commission are not open for public inspection. However, the bill allows public inspection of audit records containing a finding that there is no reasonable suspicion or probable cause to believe that a violation of the law occurred or that the commission took no action upon finding such reasonable suspicion or probable cause. The bill also allows public inspection of any audit record of the commission issuing a warning, authorizing the filing of a civil complaint, or referring a matter to a district attorney or other prosecutor for investigation or prosecution.

closed sessions Current law allows a governmental body to meet in closed session for various reasons, including deliberating on a case subject to a judicial hearing, consulting with legal counsel regarding litigation, or considering personnel matters. In addition, current law allows the commission to meet in closed session to consider requests for confidential written advice and for deliberations concerning an investigation of any violation of the law under its jurisdiction. Under the bill, the commission may also meet in closed session to consider whether there is a reasonable suspicion or probable cause to believe that a violation of the law occurred or is occurring based on a complaint or an audit report.