HomeMy Public PortalAboutFPPC Manual 2 - Local CandidatesLC, SC J, T
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ANUAL
AMPAIGNISCLOSURE
California Fair Political Practices Commission
advice@fppc.ca.gov
1 (866) ASK-FPPC / www.fppc.ca.gov
August 2018
CONTENTS
Introduction........................
............................1.1
A. Candidates Raising and Spending Less than $2,000
B. Candidates Raising and Spending $2,000 or More
D. Committees Primarily Formed to Support or Oppose a Candidate
E. Establishing a Campaign Bank Account
G.
eping......................2.1
A.
B.
C. Education
D. Committee Audits
E. Campaign Bank Accounts
F. Recordkeeping
G. Mass Mailings, Mass Emails, Telephone Calls, and Notices to Contributors of $5,000
or More
..........................3.1
A. What is a Contribution?
B. When is a Contribution Received?
C. Contribution Exceptions
D. Aggregating Contributions
E. Reporting the Intermediary of a Contribution
F. Reporting Various Types of Contributions
G. Valuing Nonmonetary Contributions
H. Valuing Mailings, Telephone Banks, Polls
I.
J. Returning Contributions
ctions......................4.1
A. Local Contribution Limits
B. Restrictions under the Political Reform Act
C. Public Funds and Public Resources
D.
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CONTENTS
Funds.......................5.1
A. Campaign Expenditures
B. Surplus Funds
.........................6.1
B. Payments for Communications Made by Others
C. Other Communications
D. Non-Contributions
mers .....................7.1
A. Which Communications Require an Ad Disclaimer?
B. How Must the Disclaimer Appear?
C. Advertisement Disclaimers for Communications by Candidate Committees for their
own Election
D. Advertisement Disclaimers for Independent Expenditure Ads Made by Committees
Primarily Formed to Support or Oppose a Candidate
F. Telephone Calls
G. Electronic Media Ads
H. Newspaper, Radio and Television Ads
I. Paid Spokespersons for Ballot Measure Ads
J. Updating a Disclaimer
K. Penalties
.........................8.1
A. Completing the Form 460 Cover Page
C. Completing the Form 460 Summary Page
D. General Rules for Reporting Contributions Received
E. Completing the Form 460 Schedule A
H. General Rules for Reporting Nonmonetary Contributions Received
I. Completing the Form 460 Schedule C
J. General Rules for Reporting Expenditures Supporting/Opposing Other Candidates,
Measures, and Committees
K. Completing the Form 460 Schedule D
L. General Rules for Reporting Payments Made and Accrued Expenses (Unpaid Bills)
M. Completing the Form 460 Schedule E
N. Completing the Form 460 Schedule F
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CONTENTS
O. General Rules for Reporting Payments Made by an Agent or Independent Contractor
P. Completing Form 460 Schedule G
Q. General Rules for Reporting Loans Made to Others
R. Completing the Form 460 Schedule H
S. General Rules for Reporting Miscellaneous Increases to Cash
T. Completing the Form 460 Schedule I
U. Amending the Form 460
le the Form 460...............9.1
A. General Information
B. When to File
C. Where to File
ts..........................10.1
A. 24-Hour Contribution Report (Form 497)
B. Independent Expenditure Reporting
C. Special Odd-Year Report (Form 460 or 450)
D. Advertisement Reports
ion and Terminating the Committee....... .11.1
A. Successful Candidates
B. Defeated Candidates
C. Candidates Using Leftover Campaign Funds for a Future Election
D. Primarily Formed Committees
E. Terminating the Committee
F. Receiving a Refund After the Committee Has Terminated
cal Reform Act/How to Ge
Cover image courtesy of
Planetware.com
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I
NTRODUCTION
I
NTRODUCTION
l Reform Act (Act) is to ensure
that disclosure of political payments is accurate, timely, and made in
a transparent manner. Clear and accurate disclosure is essential for
making voters aware of who is paying for political messages so they
may evaluate the content and make informed decisions when voting.
In California, the true source of a contribution must be disclosed. This
manual sets out the campaign reporting requirements for:
Local candidates
Superior and Appellate Court judges and candidates for
Superior and Appellate Court
Local candidate controlled committees
Committees primarily formed to support or oppose a local
candidate(s)
Since the Act was approved by California voters in 1974, there have
been more than 200 amendments to t
provisions. This manual has been prepared to assist local candidates
and committees in complying witrous and often
detailed rules. The manual is written
candidates and committees have a resource guide. At the end of each
chapter, a list of statutes and regulations that provide authority for the
information in that chapter is provided. The statutes and regulations
may be accessed on the FPPC website.
under the Act that apply to local candidates and committees. Many
cities and counties have adopted local campaign ordinances that
contain additional restrictions and requirements. Local candidates
agency to determine if there are additional local requirements and
restrictions, such as contribution limits.
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In addition, federal and state tax laws and other rules may also apply.
The Appendix contains telephone numbers and website addresses
for the Federal Election Commission, the Internal Revenue Service,
the California Franchise Tax Board, and the Federal Communications
Commission.
committees primarily formed to support or oppose a state candidate(s)
mpaign Disclosure Manual 1.
Controlling Law
This manual summarizes key campaign disclosure laws and
regulations and draws from years of FPPC staff advice on complying
sclosure laws. Each co
different, however, and may raise issues not discussed in this manual.
If there are any discrepancies between the manual and the Act or its
corresponding regulations, the Act and its regulations will control.
Need Help?
If you need assistance, the Fair Political Practices Commission
(FPPC) provides advice by email and through a toll-free telephone
advice line. The FPPC does not provide third party advice or advice
on past conduct. The FPPC website (www.fppc.ca.gov) contains
forms, manuals, and a wealth of other helpful information.
Email AdviceTelephone Advice
advice@fppc.ca.gov1-866-ASK FPPC
(1-866-275-3772)
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1
CHAPTER
GS
ETTINGTARTED
This chapter outlines the requirements for candidates and committees
primarily formed to support or oppose a candidate(s) to start their
campaigns. In the Political Reform Act (Act) and this manual,
Quick
Tip
Before raising or spending money in connection with an election,
candidates and committee treasurers should become familiar with the
various campaign disclosure forms applicable to the type of campaign
or committee involved.
The chapter is broken down by candidates who will raise and spend
less than $2,000, candidates who will raise and spend more than
$2,000, and committees primarily formed to support or oppose
Quick
a candidate(s) that are not controlled by the candidate(s) being
Tip
supported.
campaign statements
described in this
Statement of Economic
Interests
(Form 700). The Form 700 is used to disclose an
isionmaking. Candidates must
disclose investments and interests in real property held on the day the
declaration of candidacy is due, as well as income received during
onal information about the Form 700.
A. Candidates Raising and Spending Less than $2,000
A candidate who does not plan to raise or spend $2,000 or more in a
or both of the following campaign statements.
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Form 501(Candidate Intention Statement).
The Form 501
money, including th
Form 470
spending $2,000 or more in a calendar year.
candidate does not raise any money and personal funds are used only
If any monetary contributions will be received from others, a separate
campaign bank account must be established.
Quick
that calendar year receives contributions totaling $2,000 or more, the
Tip
460 (Recipient Committee Campaign Statement). If a bank account
has not already been established, the candidate must also establish a
campaign bank account.
Exception:
political party who receives contributions of less than $2,000 and
any campaign statements, including the Form 501 and Form 470.
County central committee candidates who raise or spend $2,000 or
more in a calendar year are subjcampaign reporting
requirements.
B. Candidates Raising and Spending $2,000 or More
A candidate who plans to raise or spend $2,000 or more in a calendar
year, including the candidat
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Form 501 (Candidate Intention Statement)
File the .
bank account.
Establish a campaign
Form 410(Statement of Organization)
File the .
funds from a previous election must redesignate or transfer the funds
ers 5 and 11.)
As discussed in detail later in the manual, once a candidate controlled
committee has raised or spent $2,000 or more, the following reports
Form 497(24-hour Contribution Report)
. Within 90 days
before the election, including the date of the election, if a
committee receives a contribution(s) of $1,000 or more from a
Form 460(Recipient Committee Campaign Statement)
.
The Form 460 contains an overview
preelection statements.
Committees Controlled by Two or More Candidates
If two or more candidates form one committee to support their
for school board or city council, they must:
Form501 (Candidate Intention Statement)
.
one bank account
Establish for the committee (each candidate
must deposit all contributions and make all expenditures from
this bank account).
Form 410(Statement of Organization)
File one .
Form
460(Recipient Committee Campaign Statement)
to disclose the
time the statement is due.
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Rule
Quick
controlled committee with one bank account for each election. All
Tip
contributions must be deposited in and all expenditures must be
made from the camp
his or her election is ed committee.
with the committee in connection with its expenditures. Under the
one committee/one bank account provisions of the Act, a candidate
not at the same time control a general purpose committee, such as an
limited circumstances, exceptions
to the one committee/one bank account rule exist to permit a local
ordinance).
D. Committees Primarily Formed to Support or Oppose a
Candidate
formed to support or oppose a
single candidate or a group of candidates all being voted on in the
Quick
same election but is not controlled by the candidate(s) who is being
Tip
supported. Primarily formed committees:
Form 410(Statement of Organization)
.
bank account
Should establish a campaign .
As discussed in detail later in the manual, once a committee has
raised or spent $2,000 or more, the following reports must also be
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Quick
Form 497(24-hour Contribution Report).
Within 90 days
Tip
before the election, including the date of the election, if a
primarily formed committee makes a contribution(s) of $1,000 or
more to a candidate or ballot measure committee or receives a
contribution(s) of $1,000 or more from a single source, the Form
Form 496(24-hour Independent Expenditure Report).
Within 90 days before the election, including the date of the
election, if a primarily formed committee makes an independent
within 24 hours. The
Expenditures)
additional information on the Form 462.
Form 460(Recipient Committee Campaign Statement).
The Form 460 contains an overview
preelection statements.
primarily formed committee with little or no activity may be eligible to
8.)
E. Establishing a Campaign Bank Account
Candidates who anticipate soliciting or receiving contributions from
others, or who anticipate spending $2,000 or more of their personal
funds in connection with their election, must open a campaign bank
(i.e, bank, credit union) lo
provisions discussed above, a
with one bank account per election. Candidates running for one
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Although primarily formed committees are not required to establish
Tip
a campaign bank account, it is recommended that they do so.
Pre-numbered and pre-printed checks with t
are useful in meeting the recordkeeping requirements described in
Chapter 2.
Campaign contributions may not be commingled wi
personal funds. All contributions must be deposited in, and
expenditures must be made from, the campaign bank account. Except
Quick
used for the campaign in the campaign bank account before making
Tip
campaign expenditures, even if the candidate does not expect to be
reimbursed.
Exceptions:
, a
ballot statement fee, or the $50 Secretary of State fee, without
expenses.
A candidate may contract with a vendor or collecting agent to
collect contributions prior to promptly transferring the funds
account without violating
the requirement that the candidate have no more than one
bank account. Fees deducted by the vendor are considered
expenditures from the campaign bank account at the time they
are deducted.
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Intention Statement
Before soliciting or receiving any contributions or making expenditures
for each election, even if the candidate is running for reelection to
postmarked or hand-delivered.
A
1
2
3
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Completing the Form 501
A
Type of Statement
Check the appropriate box to indicate the type of statement being
501 (e.g., a change of address). Provide a brief explanation of
the change(s).
1
Candidate Information
street address (a business address
may be used), and a daytime telephone number. A fax number and
email address may also be provided.
Agency Name
Enter the name of the agency (e.g., County of Riverside).
District Number
Enter the district number or letter, if applicable.
being sought:
the jurisdiction of the agency contains parts of two or more
counties (e.g., water district). Enter the name of the multi-county
jurisdiction.
Superior Court judge and most school board members).
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Year of Election
day are not required.
2
State Candidate Expenditure Limit Statement
This section does not apply to local candidates. It applies only to
candidates for State Senate and Assembly and candidates seeking a
3
The Form 501 must be signed by the candidate. It is not considered
Answering Your Questions
A. When may I begin to solicit and receive contributions for
my election?
You may solicit and receive contributions once you have mailed
or hand-delivered the Form 501.
B. I am only going to pay the required county election fees
to get my name on the ballot. No additional money will be
No. As long as your only expenditures are for the ballot
not required.
C.
money for the new election.
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D.
candidate?
The FPPC does not administer the laws that govern what
candidates must do to appear on a ballot or to remove their
E.
F.
candidate in a recall election?
G. Are candidates who are seeking election to a particular
district or seat (e.g., city council or community college
board of trustees) required to specify the district/seat on
the Form 501?
Yes. Each district/seat on the city council or the community
not required for candidates running for
mayor or city council at large.
H.
candidate. Do I have any reporting obligations?
Yes. You have the same reporting obligations as any other
candidate.
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not anticipate raising or spending $2,000 or more in a calendar year.
or ballot statement fees do not count toward the $2,000 committee
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Tip
an existing controlled committee established for a past election, future
election, or ballot measure (including recalls).
There are special exceptions, discussed below, that apply to judges
less than $200 per month).
When to File the Form 470 in Connection With an Election
Ex 1.1
Non-Incumbent Candidates
The
Candidates on ballot in last six months of the calendar year.
If the
candidate receives contributions or makes expenditures:
December of the previous non-election year, as well as in the election
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Ex 1.2
of the calendar year, the Form 470 (covering the year of the election)
in connection with the election. If the election will be held during the
later than July 31.
the Form 470 (covering the year of the election) with the declaration of
preelection statement required in connection with the election.
If the election will be held during the last six months of the year,
statement fee) between January 1 and June 30. If no contributions
were received or expenditures made by June 30, the Form 470 may Ex 1.3
connection with the election.
judges who are not listed on the ballot.
Where to File Form 470
Where to FileWhat to File
JudgesSecretary of State
County of Domicile
County with largest number of
registered voters
(Local agencies with jurisdiction
in more than one county)
County of Domicile, if different
City Clerk
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A
1
3
2
4
5
Completing the Form 470
A
Date of Election
calendar year, indicate the month, day, and year of the election.
1
Period Covered
The period covered is always the calendar year.
2
business address may be used), and a daytime telephone number. A
fax number and email address may also be provided.
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3
4
Committee Information
Ex 1.4
committee that is receiving contributions and making expenditures
on behalf of his or her candidacy must disclose the primarily formed
the treasurer.
5
Answering Your Form 470 Questions
A. What reporting period does the Form 470 cover?
year of the election with your declaration of candidacy, or on or
long as you do not raise or spend $2,000 or more during the
calendar year.
B.
Form 470 in connection with my election if I am running
unopposed, my name does not appear on the ballot, and
the only expenditure I make is from personal funds for a
No. A Form 470 is not required. However, once you assume
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C. If I am in a January election and will not raise or spend
$2,000 in connection with that election, when am I required
with the January election). In addition, if your second
preelection statement is due in January, another Form 470 must
election, and the second Form 470 covers the calendar year in
which the election takes place.
D. I am running as a non-incumbent candidate for city council
501) and Statement of Organization (Form 410) to form a
committee on May 1, but I did not qualify as a committee by
the July 31 semi-annual due date?
Because you intend to raise $2,000 or more in the calendar
raising or spending $2,000
not met by June 30th.
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E. I am a city council member and I closed my campaign
statement due July 31?
committee at any time during the calendar year or intend to
do not have, nor intend to have, a committee for that entire
calendar year.
F.
last year because I started raising money in December. Am
totaling more than $2,000 in January?
Form 470 and subsequently raise or spend $2,000 in the same
not meet the $2,000
reports (e.g., Form 460, Form 497).
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Form 470 Supplement
the candidate is running in an election (i.e., with the declaration of
more, or makes expenditures totaling $2,000 or more, the candidate
When and Where to File the Form 470 Supplement
or spending $2,000 or more.
City or county clerk, or county registrar of voters, if the
personal delivery, fax, or email.
(Form 460). The 24-hour Contribution Report (Form 497) may also be
required.
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1
2
3
Completing the Form 470 Supplement
1
business address may be used), and a daytime telephone number. A
fax number and email address may also be provided.
2
district number, if applicable.
3
Date $2,000 Threshold Was Met
Provide the date contributions totaling $2,000 or more were received
or the date expenditures of $2,000 or more were made.
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A candidate controlled committee or a committee primarily formed to
support or oppose a candidate (or group of candidates in the same
election) that raises or spends $2,000 or more in a calendar year
Annual Committee Fees
Committees must pay the fee annually by January 15 until the
committee terminates. If the annual fee is not paid by the January
15 deadline, the law imposes a $150 penalty, which will require the
committee to pay a total of $200 (the $50 annual fee plus the $150 late
Enforcement Division.
Note:
Committees that are created and pay the initial $50 fee in the
last three months of a calendar year are not subject to the annual fee
in the subsequent year.
If the committee is going to terminate, in order to avoid the fee for the
subsequent year, a committee must cease activity by December 31 of
State on or before January 31 of the next year. There is no provision
for extension of the deadline and fee payment.
Ex 1.5
When and Where to File the Form 410
File the original Form 410 with the Secretary of State within 10 days of
raising or spending $2,000 or more.
Send the Form 410 to:
Secretary of State
Political Reform Division
1500 11th Street, Suite 495
Sacramento, CA 95814
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Ex 1.6
but then must be amended within 10 days of reaching the $2,000
24-Hour Deadline for the Form 410
Ex 1.7
original campaign disclosure statements (e.g., Form 460) by fax,
guaranteed overnight delivery, or personal delivery. In addition, an
days of qualifying as a committee (regular mail may be used).
Committee ID Number
to the Cal-Access section of the Secretary of St
Ex 1.8
Amending the Form 410
When any information on the Form 410 changes, an amendment must
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24-Hour Deadline for Amendments to the Form 410
Changes to important information in the last 16 days before the
If, during the last 16 days before the election, any of the following
campaign statements:
The name of the committee.
Any candidate who controls the committee.
Any committee with which the committee acts jointly.
delivery, guaranteed overnight delivery, fax, or online transmission (if
be used).
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A
2
1
3
Completing the Form 410
A
Statement Type
which the committee met the $2,000
amend information on an existing
committee).
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1
Committee Information
Provide the full name of the committee.
Candidate Controlled Committees.
A committee controlled by a
candidate must include in its name the last name of the candidate, the
attempt must include the term
Primarily Formed Committees.
A committee primarily formed to
support or oppose a candidate(s) must include the last name of each
whether the committee supports or opposes the candidate(s) (e.g.,
Committee to Support Sanchez for Kern County Supervisor 20XX).
If a primarily formed committee is sponsored by a business entity,
organization, or association, the name of the sponsor must also be
included in the name of the committee.
Committee Address
ddress and mailing address. A post
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have more than one mailing address.
Committee Fax/Email Address
address is required.
County of Domicile and Jurisdiction Where Committee is Active
Indicate the county in which the committee is located and the
jurisdiction in which the committee is active. These may be different.
2
The committee must have a treasurer and may have an assistant
treasurer. Provide the names, street addresses, and telephone
numbers of the treasurer and assistant treasurer. If a candidate
chooses to be his or her own treasurer, list the name, street address,
and telephone number of the candidate.
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A primarily formed committee must also list the name of the principal
Tip
activities:
Authorizing the content of committee communications.
Authorizing expenditures.
Determining the committ
than three, a committee need only identify on the Form 410 three
3
the committee is controlled by a candidate, the candidate must also
signed by both the treasurer or assistant treasurer and the candidate.
If a candidate is his or her own treasurer, the candidate must sign on
both lines.
When two or three candidates control a committee, each candidate
committee, one of the candidates may sign on behalf of all controlling
candidates.
Bank Account
is located, as well as the
campaign bank account number. If a bank account has not been
410 within ten days of opening the bank account to provide this
information.
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4
Type of Committee
Controlled Committee
Candidate controlled committees must complete this section. A
sought (include district number, if applicable), year of the election
and, since all local elections in California are non-partisan, check the
lumn. If two or more candidates
information must be completed for each candidate.
Primarily Formed Committee
Complete this section for a committee that is not controlled by a
money to make independent expenditures supporting or opposing a
upon in the same election on the same date.
Sponsored Committee
If the committee is sponsored by an entity, provide the name and
address of the sponsor. In addition, indicate the industry group or
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An entity sponsors a committee if any of the following criteria apply:
The committee receives 80% or more of its contributions from
The entity collects contributions for the committee through
employees.
The entity, alone or in combination with other organizations,
provides all or nearly all of the administrative services for the
committee.
The entity, alone or in combination with other organizations,
sets the policies for contribution solicitation or payment of
expenditures from committee funds.
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Answering Your Questions
A.
410?
the $2,000
B. May our committee use a mail receiving and forwarding
410?
reet address or
street address (home or business) must be provided. A post
C. As a candidate, may I be the designated treasurer on the
Form 410?
Yes. You may be the treasurer or assistant treasurer.
D. May more than one candidate control a single committee to
spending any money. For both the Form 410 and Form 460,
treasurer or assistant treasurer. If the committee is controlled
by more than three candidates, one candidate may sign on
behalf of the other candidates.
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E. I am a school board candidate. Prior to attending an FPPC
webinar and learning that it was not permitted, I used
personal funds to pay for some of my start-up campaign
expenses. How is this reported on the Form 460?
So that the activity is properly disclosed, the amount of personal
funds used should be reported on Schedule A as monetary
contributions and on Schedule E (itemize purchases of $100
or more). This provides clear disclosure to the public about
where the funds were spent. If you wish to be reimbursed by
the committee, you should report the amount on Schedule F as
an accrued expense. If you have already been reimbursed by
the committee, the amount will be reported on Schedule E as
an expenditure. Non-disclosure of the payments is a violation of
the Act. All future payments must be made from the campaign
account before making expenditures.
F.
have formed a separate committee to oppose the recall.
On the Form 410, what sections do I complete under Part 4
You should complete both the Controlled Committee and
Primarily Formed Ballot Measure Committee sections. Be sure
to include the word e of the committee.
G. I am running as a replacement candidate on a recall ballot.
On the Form 410, what sections do I complete under Part
You should complete the Controlled Committee section.
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Authority
The following Government Code sections and Title 2 regulations
provide authority for the information in this chapter:
Government Code Sections
81004
81004.5
81007Mailing of Report or Statement.
82007Candidate.
82013Committee.
82016Controlled Committee.
82025Expenditure.
82044Payment.
82047.5Primarily Formed Committee.
82048.7Sponsored Committee.
84101
84102
84103
84106
84206Candidates Who Receive or Spend Less than $2,000.
84207County Central Committee Candidates Who Receive or
Spend Less Than $2,000.
84215
85200Statement of Intention to be a Candidate.
85201Campaign Bank Account.
87201Candidates (Statement of Economic Interests).
Title 2 Regulations
18247.5Primarily Formed Committees.
18402Committee Names.
18406
and Spend Less than $2,000 in a Calendar Year.
18419Sponsored Committees.
18430Committees
18520Statement of Intention to Be a Candidate.
18521Establishment of Separate Controlled Committee for Each
Campaign Account.
18531.5Recall Elections.
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2
CHAPTER
F/R
INANCESECORDKEEPING
(Act), an initiative passed by the voters, is to ensure that receipts
and expenditures in election campaigns are truthfully and fully
disclosed. In order to do so, an individual that chooses to act as a
responsibilities discussed in this chapter.
Every committee must have a treasurer before the committee may
accept contributions or make expenditures. Although there are no
restrictions on who may be a treasurer, in order to adequately perform
and his or her responsibilities under the Act. The candidate controlling
the committee may be the treasurer or assistant treasurer for his or
No individual should accept the position of a
her own committee.
Contributions may not be accepted and expenditures may not
vacant at any time, even if the
committee has an assistant treasurer. If the treasurer is unavailable
to carry out his or her duties, a new treasurer must be designated and
a new treasurer.
The committee treasurer or assistant treasurer must sign and verify all
of perjury and indicates that:
The signer has used all reasonable diligence in preparing the
To the best of his or her knowledge, the statement is both true
and complete.
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The signer is legally responsible for the accuracy and completeness
of the document, even if it is prepared by a third party, including a
professional accountant. An unsi
Treasurer Responsibilities
A committee treasurer is required to:
that contributions and expenditures are recorded promptly
and disclosure requirements. (Following the recordkeeping
guidelines in this manual ordinarily constitutes compliance with
this requirement.)
Maintain campaign records personally or monitor records kept
by others.
Take steps to ensure all of t
regarding receipt, expenditure, and reporting of campaign funds.
Prepare campaign statements personally or carefully review the
statements and underlying records prepared by others.
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Correct any inaccuracies or omissions, and inquire about any
information that would cause a person of reasonable prudence
to question the accuracy of the campaign statements. Among
the circumstances that might give rise to an inquiry regarding
receipt of the contribution.
Assistant Treasurer Responsibilities
An assistant treasurer may be designated on the Statement
unavailable, the assistant treasurer is required, like the treasurer, to
use reasonable diligence in preparing and reviewing any campaign
statements that he or she signs, and must certify to that effect under
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penalty of perjury. For statements signed by the assistant treasurer,
both the treasurer and the assistant treasurer are liable for any
violations pertaining to that report.
There are no restrictions on who may be an assistant treasurer,
although he or she should know the reporting obligations, restrictions,
and prohibitions provided under the law. For a controlled committee,
the candidate may be designated as the assistant treasurer.
Responsibilities
also responsible for maintaining detailed accounts, records, bills and
receipts necessary to prepare campaign statements. If no individual
other than the treasurer has the primary responsibility for approving
the political activity of the committee as described in this manual, the
Correct any inaccuracies and omissions in campaign
statements of which the candidate is aware, and check and
correct any information on campaign statements which a person
of reasonable prudence would question based on all of the
surrounding circumstances.
Make sure that the treasurer is exercising all reasonable
diligence in the performance of his or her duties.
Take whatever steps are necessary to replace the treasurer or
e to required standards if the
the treasurer is not exercising all reasonable diligence in the
performance of his or her duties.
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Perform with due care any other tasks assumed in connection
with the raising, spending, or recording of campaign funds
insofar as such tasks relate to the accuracy of information
entered on campaign statements.
C. Education
The FPPC provides educational workshops and webinars for
candidates and treasurers. In addition, there are several instructive
materials available on the website. Candidates and treasurers may
also seek advice from FPPC staff by calling the toll-free advice line
(866-275-3772) or emailing questions to advice@fppc.ca.gov.
D. Committee Audits
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Each odd-numbered year, a total of 20 local jurisdictions are randomly
selected for mandatory audit. All candidates in the selected jurisdiction
are subject to audit if they have raised or spent $2,000 or more.
selected. Candidates who raise or spend $15,000 or more in these
selected races are subject to audit. In addition, the FPPC and the
Franchise Tax Board are authorized to conduct discretionary audits.
E. Campaign Bank Accounts
Primarily Formed Committees
recommended that they do so. Pre-numbered and pre-printed checks
with the committemeeting the recordkeeping
requirements discussed in this chapter. Committees may not
commingle campaign contributions
funds.
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Candidate Controlled Committees
Candidates who anticipate soliciting or receiving contributions from
others, or who anticipate spending $2,000 or more of their personal
must
funds in connection with their election, open a campaign bank
ballot statement fee do not count toward the $2,000 threshold.
Establishing the Account
credit union) located in California. Under the
have one controlled committee with one bank account per election.
All campaign contributions must be deposited into the campaign
bank account and all campaign expenditures must be made from the
personal funds
campaign bank account. Candidates must deposit
before
to be used for the campaign in the campaign bank account
making campaign expenditures.
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Exceptions:
, a
ballot statement fee, or the $50 Secretary of State fee, without
expenses.
A candidate may contract with a vendor or collecting agent to
Quick
collect contributions prior to promptly transferring the funds
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account without violating
the requirement that the candidate have no more than one
bank account. Fees deducted by the vendor are considered
expenditures from the campaign bank account at the time they
are deducted.
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Expenditures from Multiple Accounts
A candidate who has more than one campaign committee must make
all expenditures in connection with an election from the campaign
bank account established for that election, including:
Services and actual expenses of outside political consultants,
the campaign treasurer, other staff, pollsters, and other persons
Payments for mailings, political advertising, yard signs, opinion
polls or surveys, and other communications if the payments are
either:
1.For a communication that make
2.Made three months prior to an election for which the candidate
declaration of candidacy, or nomination papers with an
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Ex 2.1
Redesignating the Bank Account
may use the bank account that was established for the prior election.
The account may be redesignated at any time prior to receiving
new Form 501 (Candidate Intention Statement) and an amended Form
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Defeated Candidates:
A candidate that is defeated in an election
may use the same bank account for a future election to seek the same
The funds must be redesignated befo
Campaign funds become surplus on the 90th day following the closing
date for the postelection reporting period.
Note:
A campaign bank account may not be redesignated if the
. See
Chapter 11 for the requirements that must be met in order to use
Ex 2.2
Investments
Campaign funds may be transferred from a campaign bank account
market funds, or similar accounts. The funds must come from a
funds must be redeposited into the same campaign bank account
before being used for campaign expenses.
Credit Cards
bank account. A single credit card, however, may not be designated
for more than one campaign bank account. In addition, payment of
charges on a credit account must be made only from the appropriate
campaign bank account.
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In lieu of establishing a new credit account, a candidate may designate
an existing personal credit card with a zero balance as the campaign
credit card by listing the card number and date of designation in the
campaign records. The candidate must ensure that no personal
expenses are charged to this account until after all campaign charges
all campaign expenses charged to the account have been paid, the
candidate may resume using the card for personal purposes.
Petty Cash
Candidates may use campaign funds to establish a petty cash fund at
A petty cash fund may not hold more than $100 at any time.
No expenditure of $100 or more may be made from the fund.
The fund may be used only for expenses associated with the
be reported as expenditures.
Legal Defense Fund Committees
administrative proceedings arising directly out of the conduct of an
election campaign, the electoral process, or the performance of the
must be held in a separate bank account
. Any funds raised may
only be spent to defrher related legal costs,
information.)
The candidate and the treasurer of the legal defense fund committee
are subject to the recordkeeping requirements discussed in this
chapter. In addition, separate detailed accounts, records, bills, and
receipts, for each legal proceeding, including documentation to support
the basis and timing for raising legal defense funds, must be kept.
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Recall Elections
treasurer are subject to the recordkeeping requirements discussed in
this chapter. See Chapter 11 for additional information about recall
elections.
F. Recordkeeping
An accurate and organized record must be kept of all campaign
contributions and expenditures. All individuals who handle
contributions and make expenditures must be aware of and practice
the recordkeeping procedures required by the Act and FPPC
regulations outlined in this manual. While others may be involved,
responsible for the accuracy of the records.
Record Retention
Ex 2.3
Candidates and committees must keep all records, including original
source documentation such as bank statements and other records
and copies of completed campaign
statements, for a period of four years from the date the campaign
Records of Contributions Received and Other Receipts
daily record
Two types of records are required for receipts: a ,
contributor record
, with detailed information on each contributor of
$25 or more. The daily record requirement may be met simply with
bank statements, copies of checks received, or other documentation
that provides the required information listed below.
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Date Received
A monetary contribution is received on the date the candidate or
committee, or an agent of the candidate or committee, obtains
possession or control of the cash, check, or other form of contribution,
not the date it is deposited in the bank account. Contributions
received by electronic methods such as wire transfer, credit card, or
debit account transactions are also received on the date the candidate
or committee obtains possession or control of the funds. The following
list provides examples:
A contributor makes a contribution over the telephone. The
the committee on the date the
contributor gives his or her debit/credit account information to
the committee.
A contributor makes a contribution via the Internet and the
committee reviews the online transaction before the contribution
on the date the committee receives the payment information.
A contributor makes a contribution via the Internet and the
contribution is made by direct deposit without review and before
transaction reports are produced. The contribution
by the committee when the committee has possession of the
funds.
A contributor makes a contribution by text message. The
he committee on the date that the
mobile fundraising vendor, acting as agent of the committee,
obtains possession or control of the contribution.
A contributor agrees to make contributions via installment
payments by authorizing the committee to periodically charge
his or her credit card or withdraw funds from his or her account.
en the committee, or an agent
of the committee, obtains possession or control of the funds for
each installment payment. The contribution reported is only the
amount of each installment payment when received. Installment
payments scheduled to take place in the future, but not yet
received, are not reportable.
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Receipts Under $25
A daily lump sum total must be kept for contributions received under
$25 and miscellaneous receipts under $25.
Contributor Records
Contributions: $25 to $99.99
For each monetary or nonmonetary contribution or loan of $25
or more, the date received, amount of the contribution, and full
name and street address, including zip code, of the contributor
must be documented. In addition, the total amount received from
the contributor over the course of the current calendar year (the
must be recorded.
Contributions: $100 or More
If contributions totaling $100 or more are received from an individual,
in addition to the information required for contributions of $25 or
more as described above, the contn and employer
must be recorded. If the contributor is self-employed, that fact also
must be noted along with the name of his or her business. If a check
is received from a business entity, generally the contributor is the
business entity, not the person who signs the check.
A contribution of $100 or more must be returned if the
and, if the contributor is
an individual, his or her occupation and employer are not in
60 days from receipt of the
contribution.
Such contributions may be deposited
pending receipt of the information, in which case they must be
the Form 497, 24-hour Contribution Report).
The Form 460 must be amended within 70 days from its closing date
to disclose the missing contributor information unless the contribution
is returned to the donor. The Form 497 need not be amended. The
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committee also must note in its records the date the contributor
information is received, if that date is different than the date the
contribution is received.
Ex 2.4
When a contribution cannot be returned to the contributor within 60
days from the date the contribution was received, the contribution
amount must be paid to the general fund of the local jurisdiction in
which the committee is based. In the case of a Superior Court judge
or a judicial candidate, the contribution must be paid to the Secretary
of State for deposit in the State General Fund.
If a contribution is returned to the contributor by check and the check is
not cashed by the contributor within 90 days, the contribution amount
must be paid within 30 days to the general fund of the local jurisdiction
or to the Secretary of State for deposit in the State General Fund.
Intermediaries and Earmarked Funds
For contributions of $25 or more made through an intermediary
both
(see Chapter 3), records with the above information for the
intermediary and the contributor are required.
Records must also include the amount of earmarked funds, a notation
candidate or committee for which the funds have been earmarked.
A committee making contributions with earmarked funds must maintain
documentation showing which earmarked funds were contributed.
Nonmonetary Contributions
If the contribution is nonmonetary and valued at $25 or more, a
description and the fair market value of the contribution must be
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Loans Received
If the contribution is a loan of $25 or more, in addition to the above
information for monetary contributions, the following information must
be recorded:
Name and street address of any guarantor and the amount
guaranteed, if any. The occupation and employer of any
individual who guarantees a loan of $100 or more must also be
recorded.
If a candidate receives a loan from a commercial lending institution
for his or her campaign, the institution is reported as the source of the
loan. The candidate does not have to be reported as the guarantor,
even if he or she is personally liable.
Documentation for Contributions Received and Other Receipts
such as bank statements, check registers, and passbooks.
The following documents produced or received by the committee
also must be kept for receipts of $25 or more: copies of contributor
used to determine the fair market value of donated goods or services
Documentation for electronic transactions must include information
collected when debitiount, such as itemized
debit/credit account transaction records, and credit card receipts, or
vouchers. Documentation of contributions received over the Internet
must include a record of the transaction created and transmitted by the
cardholder including the street address and the
last four digits of the card number.
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For contributions or other receipts of $100 or more, copies of any
letters or other communications sent by the committee to obtain the
documents listed above must be kept.
Expenditures Made
Expenditures: Under $25
A daily lump sum total of all expenditures of less than $25 must be
kept.
Expenditures: $25 or More
For expenditures of $25 or more to a single payee, or a series of
payments for a single product or service that total $25 or more, the
following must be recorded:
Date each expenditure was made or, in the case of accrued
Description of the goods or services received.
Contributions to Other Committees and Independent
Expenditures
For expenditures that are contributions or independent expenditures,
the amount of the expenditure and the cumulative total paid in
committee, or ballot measure must be recorded.
For all such expenditures of $25 or more, the following information is
required:
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district he or she holds or for which he or she seeks nomination
or election, or the number or letter of the measure and the
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Cumulative amount spent on behalf of the candidate, measure,
or committee.
Loans Made to Others
The following additional information must be kept for loans made by
and street address of anyone guaranteeing the loan or who is liable
directly, indirectly, or contingently for the loan. (For restrictions on
loans to others. (See Chapter 5.)
Expenditures for Gifts, Meals and Travel
A candidate controlled committee that makes an expenditure of $100
or more for a gift, meal, or travel, must keep a dated memorandum or
some other form of dated written record containing a brief description
of the political, legislative, or governmental purpose of the expenditure,
as well as the information described below:
Gifts:
The date of the expenditure, a description of the gift,
more.
Meals:
The date of the meal, the name of each individual
who attended the meal, and whether he or she is a member
household or someone who has authority to
approve expenditures of campaign funds.
Travel:
The dates of travel, the destination, the name of each
individual who traveled, and whether he or she is a member
household or someone who has authority to
approve expenditures of campaign funds.
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Documentation for Expenditures
All bank and credit card records for expenditures must be kept.
For expenditures of $25 or more, canceled checks, bills, invoices, or
of canceled checks may be retained if the copies contain a legible
Quick
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image of the front and back of the canceled check and the copies are
If no receipt, voucher, or invoice is available, a voucher should be
written as soon as possible with the date and amount of the payment,
the name of the payee, and a description of the goods or services
received. A voucher is not required for payments under $25.
G. Mass Mailings, Mass Emails, Telephone Calls, and Notices
to Contributors of $5,000 or More
The following must be retained for a period of four years following the
Mailers.
A copy of any mass mailing sent by the committee
(see Chapters 6 and 7).
Mass Emails.
An original sample of each mass email, the date
sent and the number of individual emails sent (see Chapter 7).
Political Calls.
A script of the call or a copy of the recorded
phone message when the committee coordinates on and pays
for 500 or more telephone calls to expressly advocate support
for a candidate or ballot measure (see Chapter 6).
Major Donor Notices
contributors of $5,000 or more (see Chapter 3).
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Answering Your Questions
Yes. The candidate may serve as the treasurer or assistant
treasurer.
B.
reporting services?
Yes. The FPPC does not endorse or recommend any particular
websites of the California Political Attorneys Association and the
California Political Treasurers Association.
C.
someone to be able to serve as treasurer?
No. However, no individual should accept the position as a
D. What should be done if the treasurer and assistant
treasurer, or the candidate, are not able to sign a campaign
statement before the deadline?
candidate, treasurer, or assistant treasurer. If
signature is missing, submit an amendment to provide his or her
signature as soon as possible. Likewise, if both the treasurer
and assistant treasurer are unavailable, submit an amendment
to provide the required signature as soon as possible.
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E. I do not intend to raise any funds from others and I will not
be spending any personal funds on my campaign other
fee. Do I need to open a campaign bank account?
No.
F. I do not intend to raise any funds from others. I will be
spending personal funds on my campaign, but I will not
be spending $2,000 or more. Do I need to open a bank
account?
No.
G. I do not intend to raise any funds from others. I will,
however, be spending $2,000 or more of my personal funds
on my campaign, not including the amount I spend on my
Yes. Since you plan to spend $2,000 or more for your
campaign, you must open a campaign bank account.
H. I will be raising money from others for my campaign, but
I do not intend to raise or spend $2,000 on my campaign
during the calendar year. Do I need to open a bank
account?
Yes. Since you are raising funds from others, even though you
will not be raising or spending $2,000 or more, you are required
to open a campaign bank account. Contributions received
and personal funds you will use for your campaign must be
deposited in the account.
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I. Are committee records and source documentation
required to be kept on paper, or may the committee use an
electronic recordkeeping system?
Electronic records are permitted, provided that all of the
required information is collected and recorded in a timely and
uniform manner that ensures the accuracy and reliability of
the information. Committees are responsible for ensuring
that electronic records can be read and/or printed for auditing
purposes during the applicable retention period.
J. May a private service, such as PayPal, be used to collect
contributions electronically?
Yes, so long as for each contribution of $100 or more, (a) the
service is able to provide the name of the contributor, and (b)
the committee reports all the information needed to meet the
statutory recordkeeping requirements, including the name,
address, occupation, and employer of individual contributors
of $100 or more. Even if the company deducts a fee from the
amount of the contribution, the entire amount of the contribution
must be disclosed. The fees charged by the private service are
reported as expenditures.
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Authority
The following Government Code sections and Title 2 regulations
provide authority for the information in this chapter:
Government Codes Sections
82047.6
84100Treasurer.
84104Recordkeeping.
84105
84302Contributions by Intermediary of Agent.
84305Requirements for Mass Mailing.
84306Contributions Received by Agents of Candidates or
Committees.
84307Commingling with Personal Funds.
84310
84501Advertisement.
85304.5
85700
90000Responsibility.
90001Mandatory Audits and Investigations.
90002
90003Discretionary Audits.
90007Auditing Guidelines and Standards.
Title 2 Regulations
18401Required Recordkeeping for Chapters 4 & 5.
18402.1
18421.1Disclosure of the Making and Receipt of Contributions.
18421.2Street Address.
18421.3Reporting of Contributions and Expenditures Collected by
18421.31Text Message Contributions.
18421.7Reporting an Expenditure for a Gift, a Meal, or Travel.
18426.1Assistant Treasurer.
18427Duties of Treasurers and Candidates with Respect to
Campaign Statements.
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18427.1
18432.5Intermediary and Earmarked Funds Disclosure.
18440Telephone Advocacy.
18524Investment and Expenditur
Funds.
18530.45
18570
Information.
18994Auditing and Investigations.
18995Standards and Guidelines for Auditing Statements and
Reports.
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3
CHAPTER
C
ONTRIBUTIONS
guidelines necessary for proper reporting, including a discussion on
valuing nonmonetary contributions.
however, many cities and counties have adopted campaign ordinances
that include contribution limits and other restrictions. Check with your
local elections or ethics agency.
A. What is a Contribution?
monetary or nonmonetary payment received by a
candidate or committee for which the candidate or committee has not
provided full and adequate consideration in return. A contribution may
take any of the following forms:
Money (cash, check, credit card, wire transfers, text
contributions).
Nonmonetary items (donated goods or services, discounts).
Payments made by a third party for advertising or other
communications coordinated with the committee.
Loans (including loan guarantees, co-signing, and lines of
credit).
Money, nonmonetary items, and loans from the candidate to his
or her own committee or fr
Quick
Enforceable promises to make a payment (for example, a
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services and, based on that written promise, the committee
expends funds or enters into a legally-enforceable contract to
purchase the goods or services).
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B. When is a Contribution Received?
Ex 3.1
monetary
A contribution is received on the date the candidate,
committee, or an agent of the committee, obtains possession
or control of the cash, check, or other item that constitutes the
contribution.
When an agent of the committee, such as a campaign consultant,
receives a contribution for the committee, the agent must notify the
treasurer no later than the closing date of the next campaign statement
due. The date of the contribution is the date the agent obtained
possession of the contribution.
Ex 3.2
nonmonetary earlier
A contribution is received on the of the following:
The date funds were expended by the contributor for the goods
The date the candidate, committee, or an agent of the
committee obtained possession or control of the goods or
l
expenditure.
employee services
A nonmonetary contribution of is made by the
payroll
contributor and received by the candidate or committee on the
date
of the employee. See the discussion later in this chapter for
information about how to value a contribution of employee services.
enforceable promise
An is received on the date the candidate,
committee, or an agent of the committee, receives documents
verifying that a contributor has made a legally enforceable promise to
make a payment. A perse promise to make a
Guarantees, furnishes security for, endorses or cosigns a loan.
Makes and delivers a post-dated check.
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Establishes a line of credit at a bank or other commercial
lending institution for a candidate or committee.
Exceptions:
A pledge card is not considered an enforceable promise
to make a payment. so does not include a
ture installment payments through
wire transfer, credit card transaction, debit account transaction, or
similar electronic payment.
C. Contribution Exceptions
addition to the most common exceptions listed below, Chapter 6
discusses certain types of communications that are not considered
contributions.
Volunteer Personal Services:
If an individual donates his or
her personal or professional services to a campaign (including a
contribution has been made or
received as long as there is no understanding of reimbursement.
However, if an employer donates employee services to a campaign,
and any employee spends more than 10 percent of his or her
compensated time in a calendar month performing campaign activity
for one or more campaigns, the employer has made a nonmonetary
contribution to the committee. Determine the contribution amount by
allocating the gross salary to the time spent on campaign activity. See
chapter for additional information.
Quick
If a person, other than a lobbyist (or a
Tip
the total cost of the event is $500 or less. However, if someone else
donates food, beverages, or anything else of value to the event,
the fair market value of those donated goods is a nonmonetary
contribution. In addition, the donated goods must be counted to
determine whether the total cost of the event is $500 or less.
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Note:
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state lobbyist or to a cohabitant of a state lobbyist. A registered state
election. A fundraiser held in the home of a lobbyist is considered
Ex 3.3
fundraiser in his or her home for a candidate seeking election to a
governmental agency that the lobbyist is registered to lobby. A similar
Uncompensated Internet
activity by an individual, such as sending or forwarding electronic
messages, social networking, blogging, creating or hosting a website,
to support or oppose a candidate or ballot measure is not considered
Ex 3.4
a contribution or expenditure. Certain Internet communications require
advertisement disclaimers as outlined in Chapter 7.
Member Communications:
Payments made by an organization
(including a political party, union, trade association) for certain
communications that are sent only to the or
employees, or shareholders, or their families, are not contributions to
a candidate endorsed in the communications. For example, if a union
sends a mailing to only its membership, supporting your campaign, the
cost of the mailing is not a reportable contribution.
Ex 3.5
Gifts:
made principally for personal purposes (not political purposes) is a gift
or greater value. Generally, gifts are subject to annual limits and must
Economic Interests). For additional information about gifts, see the
fact sheet on the FP Limitations and Restrictions
on Gifts, Honoraria, Travel and Loans.
Payments for Legislative, Governmental, or Charitable
Purposes:
Behested payments made in connection with a legislative,
governmental, or charitable purpose, are not considered to be made
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contributions or gifts. However, if the payment is made at the behest
803 (Behested Payment Report) as described in Chapter 11.
D. Aggregating Contributions
Contributions received from certain combinations of individuals and
entities must be added together to determine the total amount that will
be treated as received from a single contributor.
The following contributions are aggregated:
Contributions from an indivi
contributions made by an entity when the individual directs and
controls the entit
Contributions from two or more entities that are directed and
controlled by a majority of the same persons.Quick
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Contributions made by entities that are majority owned by any
person. Contributions made by the majority owner and all other
entities majority owned by that person are aggregated, unless
those entities act independently in their decisions to make
contributions.
The following examples provide general guidance regarding
aggregation of contributions. The FPPC may be contacted for advice
Ex 3.6
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Ex 3.7
Ex 3.8
Ex 3.9
E. Reporting the Intermediary of a Contribution
An intermediary is a person or entity that makes a contribution
on behalf of another person. For example, an employee who is
reimbursed for a contribution by his/her employer is not the true source
of the funds, but the intermediary
A committee receiving a contribution of $100 or more from an
intermediary must report the true source and the intermediary. The
campaign statement will identify both the inte
ess, and, if applicable, the occupation and
employer.
Failure to disclose the true source of a contribution is considered
one of the most serious violations of the Political Reform Act.
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Ex 3.10
Ex 3.11
Candidates and committees are required to check and, if necessary,
correct any information regarding the true source of a contribution
that a person of reasonable prudence would question based on all
of the surrounding circumstances. If there is reason to question the
source of a contribution (e.g., there is reason to believe the information
contained on the contribution check does not contain the name of the
person who is actually making the contribution), the donor should be
asked if he or she is acting as an intermediary for the true source of
the contribution.
This manual cannot address all scenarios that may need to be
questioned, but it is prudent to question unusually large contributions
registered as a political committee on the Secretary
F. Reporting Various Types of Contributions
Electronic Receipt of Contributions:
Contributions may be received
by credit card, wire transfer, via the Internet, cell phone text message,
telephone, debit account transaction, or similar electronic payment
options. All of the reporting and recordkeeping requirements apply to
these contributions. Some tips are:
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For contributions of $25 or more, the committee treasurer
Ex 3.12
should make sure that a copy of the credit card voucher or other
documentation is sent to the committee as soon as practicable
after the contributions are made.
The entire amount charged to the contributor is reported as a
contribution.
Fees associated with this type of fundraising or deducted by the
vendor before the contributions are sent to the committee are
reported as expenditures. The fees are not deducted from the
amount of each contribution reported.
Contributions made by text message are received on the
date the mobile device company receives the funds from the
contributor, not the date the text was sent.
Earmarked Contributions
A contribution to a committee that is earmarked for a contribution
to any other particular committee, ballot measure, or candidate is
required to be disclosed as outlined below.
A contribution is earmarked if it is made under any of the following
circumstances:
solicited the contribution for the purpose of making a
ballot measure, or candidate, requested the contributor to
expressly consent to such use, and the contributor consents
to such use.
agreement with the contributor that all or a portion of
the contribution would be used to make a contribution to
candidate.
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the committee or candidate receiving the contribution
reached a subsequent agreement that all or a portion of
the contribution would be used to make a contribution to
candidate.
However, there is an exception for dues, assessments, fees, and
similar payments made to a membership organization or its sponsored
per calendar year from a single source for the purpose of making
contributions or expenditures. Such funds are not considered to be
earmarked by each individual contributor, instead the membership
organization is to be reported as the source for these funds.
The committee making an earmarked contribution shall provide
the committee receiving the earmarked contribution with the name
and address and, if applicable, the occupation and employer of
the contributor who earmarked their funds and the amount of the
earmarked contribution at the time it makes the contribution. If the
committee making the contribution received earmarked contributions
that exceed the amount contributed, or received contributions that
were not earmarked, the committee making the contribution shall use
a reasonable accounting method to determine which contributors
to identify, but in no case shall the same contribution be disclosed
more than one time to avoid disclosure of additional contributors who
Ex 3.13
earmarked their funds.
Fundraisers:
The full amount (face value) of a fundraiser ticket is a
reportable contribution, unless it is a joint committee/charity fundraiser
subtracted when determining the amount of the contribution.
Auctions and Garage Sales:
When items are donated for auction or
sale at a fundraiser, the donated item is a nonmonetary contribution.
(See below for determining the value.) When someone buys an item,
is reported as such. If any person or entity pays $100 or more, the
payment is itemized.
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When someone pays more for an item than it is worth, the amount
that is equal to the fair market value is reported as a miscellaneous
increase to cash and the amount over the fair market value is reported
as a monetary contribution. Each is itemized at $100.
Bar Receipts
: Funds received by selling drinks at a fundraiser at fair
market value are reported as miscellaneous increases to cash, not
contributions.
reported as nonmonetary contributions. (Note that Penal Code section
district attorney for further information.)
Joint Checking Accounts:
Individuals (including spouses) may
make separate contributions from a joint checking account. For
Ex 3.14
reporting purposes, the full amount of the contribution is reported
as coming from the individual who signs the check. If two or more
individuals sign the check, the contribution is divided equally between
or among the signers, unless there is an accompanying document
signed by each individual whose name is printed on the check that
clearly indicates a different apportionment.
A check drawn on a joint checking account that is signed by an
individual not listed on the check (e.g., an accountant) must be
accompanied by a document signed by at least one of the individuals
listed on the check stating to whom the check is to be attributed.
Business Accounts:
Generally, if a check is drawn on the account of
Ex 3.15
a business entity, the contributor is the business entity, not the person
who signs the check.
Minor Children:
A contribution made by a child under the age of 18 is
presumed to be a contribution from his or her parent or guardian.
Text Contributions:
For a contribution received by a text message,
the contributor is the person who is subscribed to the cell phone
number that texted the contribution.
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Transfers from a Prior Campaign:
Candidates who have more than
one campaign bank account and controlled committee may transfer
funds from one account/committee to another so long as the funds are
Leftover funds become surplus upon the 90th day after leaving an
whichever occurs last. See Chapter 8 for information about how to
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report transferred funds.
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Chapter 11 includes a discussion about the rules for using leftover
campaign funds for a future election.
Contributions from the Candidate:
A payment from a joint
checking account that bears the name of the candidate and spouse is
considered a contribution from the candidate. This is true even if the
spouse signs the check.
A contribution receivedly separate funds and
signed by the spouse is considered to be made by the spouse and is
subject to possible contribution limits and other applicable provisions
of the Act.
her than a sole proprietorship, is considered
a separate legal entity. Therefore, contributions from the business
are not considered to onal funds and may be
subject to local contribution limits. Generally, contributions from a
orship to the candidate are not considered to
be from a separate entity and are therefore not subject to contribution
limits, if any. Note: Contributions to another candidate or committee
from the candidate and his or her sole proprietorship are aggregated
for purposes of contribution limits. (See Burch Advice Letter, No.
A-14-032.)
Contributions from Other Candidates:
Candidates and committees
may receive contributions, subject to contribution limits, if any, from
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Undesignated Contributions:
Candidates who are soliciting
contribution in any of their campaign bank accounts. An undesignated
monetary contribution must be reported on the campaign statement for
the reporting period in which it is received, and must be deposited in
the campaign bank account for the controlled committee to which it is
being allocated within 30 days of receipt.
Undesignated nonmonetary contributions must be allocated to a
particular committee within 30 days of receipt or by the reporting
deadline for the reporting period in which the contribution is received,
whichever is earlier.
G. Valuing Nonmonetary Contributions
This section provides assistance in determining how to value
Ex 3.16
nonmonetary contributions so that they may be reported accurately.
The varieties of nonmonetary contributions are vast, so it is not
possible to present all possibilities. Contact the FPPC for assistance.
Fair Market Value:
When a nonmonetary contribution is received,
the fair market value of the goods or services (the amount it would
cost a member of the public to purchase the goods or services) must
be reported. If the committee does not know the fair market value of
a nonmonetary contribution (e.g., an original piece of artwork), the
committee may send an email or a letter requesting that the contributor
provide the value of the contribution in writing. The contributor is
legally required to provide an amount if the value of the contribution is
$100 or more.
Ex 3.17
Employee Time:
If an employer donates the use of an employee to
work on campaign activities for one or more campaigns, the amount
the individual is paid is reportable as a nonmonetary contribution
from the employer if the employee spends more than 10 percent
of his or her compensated time in a calendar month working on
campaign activity. To determine the contribution amount, the gross
compensation is allocated to the time spent on campaign activity.
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such as stock options or an annuity purchase. Compensation does
health care or retirement plan.
Discounts:
If the committee receives a discount on goods or services
it purchases and the discount is not offered to the public in the regular
course of business, the discount is a nonmonetary contribution that
must be reported.
Private Air Transportation:
A person who provides a candidate with
Ex 3.18
The value is determined by using either the commercial rate to the
destination, if available, or the charter rate divided by the number of
Email Lists:
If a list of email addresses is donated, the fair market
value must be reported as a nonmonetary contribution.
Corporate Stock:
The contribution of corporate stock must be
reported and valued as listed on the stock exchange on the date of
receipt. When the stock is sold, the total proceeds of the sale are
reported on Schedule I as a miscellaneous increase to cash. If the
notation that the payment represents the sale of st
must be reported on Schedule E.
H. Valuing Mailings, Telephone Banks, Polls
Generally, the fair market value of a communication is reported as a
Ex 3.19
contribution when it expressly advocates support of or opposition to a
candidate and was made at the behest of (or in coordination with) the
affected candidate or primarily formed committee.
Multiple Candidates/Measures:
If a communication expresses
support of or opposition to more than one candidate or ballot
measure, the fair market value attributable to each may be calculated
by prorating the costs among the featured candidates and ballot
measures. The prorated value is based on the amount of space
allotted to each candidate or measure supported or opposed in the
mailer.
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The value of a mailer that supports or opposes candidates and
Ex 3.20
measures being voted on in different jurisdictions may be prorated
based on the number of mailers sent to each candidate or ballot
Political and Non-Political Material:
The cost of a communication
containing both express advocacy in support of or opposition to a
candidate, as well as non-political material, may be prorated. Costs
directly associated with the political message are reportable by the
candidate, including, for example, compensation paid to employees
who spend more than 10 percent of their compensated time in a
calendar month producing or mailing the political materials, and the
pro rata cost of paper, envelopes, and postage. The allocation may
be based on the comparative number of pages or the comparative
amount of weight between the political and non-political materials.
Bulk Rate Permits:
bulk rate permit is a
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nonmonetary contribution from the organization. If the committee pays
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the actual postage costs incurred under the bulk rate permit, the fair
market value of the contribution is either:
The difference in postage costs between the bulk mailing rate
and that of regular mail.
Phone Banks:
Businesses and other entities will sometimes allow
a committee to use their phones to call prospective voters during
non-business hours. The fair market value of the use of the phones
is calculated to determine the amount reported as a nonmonetary
determine the fair market value is to contact organizations that provide
phone banks as a business. Note: Disclaimers are required on
certain paid telephone calls. (See Chapter 7.)
Polls and Surveys:
A person or entity that provides data from a
public opinion poll or survey to a candidate or committee is making a
nonmonetary contribution if the candidate or committee requests the
data or the data are used for political purposes. Standards used by
the Federal Election Commission (11 CFR 106.4) may be used for
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valuing polling or survey data. The formula is based on the age of the
Ex 3.21
data. The chart below illustrates the fair market value of data based
on the number of days that pass from the date the entity originally
received the data to the date the data were provided to the candidate
or committee.
Age of DataValue
0 - 15 days
16 - 60 days50%
61 - 180 days5%
More than 180 days
candidate or committee, the nonmonetary contribution is the prorated
portion of the total value of the survey.
Committees that receive one or more contributions totaling $5,000
or more in a calendar year from an individual or entity that made the
contribution(s) from personal, business, corporate, or general funds
obligation.
Generally, the notice must be mailed, faxed or emailed to the
within two weeks
contributor of receiving contributions totaling $5,000
or more. But, if a contribution of $10,000 or more is received in the 90
days prior to or on the date of the election, the notice must be mailed,
within one week.
faxed or emailed to the contributor A copy of each
notice or a record of all notices showing the date sent and the name
and address of the person receiving the notice must be retained.
The notice does not need to be sent again for subsequent
contributions received from the same contributor in the same calendar
year. In addition, the notice is not required to be sent if the source of
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The notice may be tailored as long as it contains language
substantially similar to the language below:
Major Donors
If your contribution(s) to this committee and to other California
state or local committees total(s) $10,000 or more in a calendar
Campaign Statement (Form 461). The deadline and location
contribution(s) you have made. For additional information, visit
www.fppc.ca.gov and review the available campaign materials.
Multipurpose Organizations Including N
If your organization is a multipurpose group, it may qualify as a
to Government Code Section 84222 and FPPC Regulation 18422
visit www.fppc.ca.gov and review the available campaign
materials.
24-Hour Reports
Contribution Report (Form 497) if they:
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s controlled committees, or to
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a committee primarily formed to support or oppose a candidate
or ballot measure during the 90 days prior to the election, or
on the date of the election, in which the candidate or ballot
measure is being voted on; or
political party committees during the 90 days prior to a state
election, or on the date of the election, including state special
elections.
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Electronic Filing
Late Filing Penalties and Fines
FPPC Assistance
an email to advice@fppc.ca.gov, or refer to their website: www.
fppc.ca.gov.
J. Returning Contributions
There are several provisions in the Act and FPPC regulations that
regulate the return of contributions. The general rule is that a
committee may return all or part of a contribution to the contributor
so long as the return is reasonably related to a political, legislative, or
governmental purpose.
General Rules:
If a contribution is deposited, cashed or negotiated,
it must be disclosed on the next campaign statement, even if it is
subsequently returned. If a contribution is not deposited, cashed,
or negotiated, it is not required to be reported under the following
circumstances:
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Outside the 90-Day Election Period:
A contribution is not
required to be reported (by the donor or the committee receiving
the funds) if it is not deposited, cashed, or negotiated and it
is returned to the contributor before the closing date of the
campaign statement on which it would otherwise be reported.
During the 90-Day Election Period:
A contribution of $1,000
or more received during the 90 days before an election,
including the date of the election, is not required to be reported
(by the donor or the committee receiving the funds) if it is
not deposited, cashed, or negotiated and it is returned to the
contributor within 24 hours of receipt.
Missing Contributor Information:
A contribution of $100 or more
must be returned within 60 days of receipt if the committee has
not obtained the contributo in the case of a
contributor who is an individual, his or her occupation and employer. If
the committee returns the contribution for lack of information, and the
check is not cashed by the contributor within 90 days, the committee
must, within the next 30 days, forward the amount to the general fund
of the local jurisdiction.
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Answering Your Questions
A. Our committee is holding a $200 per person dinner
fundraiser. The actual cost of the event to our committee
will be $75 per person. When someone pays $200 to attend
the dinner, do we subtract the $75 cost to our committee
and report receiving a $125 contribution?
No. Report the full amount paid for the fundraiser ticket ($200)
as the contribution. The costs to the committee will be reported
on Schedule E (Expenditures) of the Form 460.
B. When we send out a fundraising letter, are we required to
number, but it is highly recommended. Many campaigns do
so because others need the information for their own reporting
forms.
C.
is interpreted and enforced by eac
and recordkeeping requirements are met.
D. If my next door neighbor spends $1,000 on an event to
help raise funds for two different candidates and the event
is held in her home, has she made a contribution to each
committee?
Yes. The total cost of a home fundraiser must be $500 or less
or the event will qualify as a nonmonetary contribution. This is
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E. If I hold a fundraiser in my home for my candidacy, and the
exception apply, meaning nothing would need to be
reported on the Form 460?
No. A candidate must deposit any personal funds that will be
used to promote his or her election into the campaign bank
account. Therefore, any expenditures made for the fundraiser
must be reported on your Form 460.
F.
political committee?
which are not reimbursed by the political committee would be
contact the IRS for any possible restrictions based upon the
G. Is volunteer work provided by some people considered
a nonmonetary contribution be
profession, such as free legal advice provided by a lawyer
or bookkeeping done by a CPA?
of the individual, are not reportable so long as the individual
providing the services is not paid by a third party.
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H. Three candidates wish to conduct individual polls. A
polls can be combined using one very large sample. Are
the candidates receiving contributions from the polling
making contributions to each other?
To the extent each candidate pays only his or her share of the
cost of the poll, the candidates are not making contributions to
as part of its standard business policy of providing discounts in
similar situations and does not provide the discount for political
purposes, the candidates will not receive a contribution from the
I. A committee receives a contribution from a joint checking
account signed by one of the individuals. The contribution
exceeds local limits. If the committee later receives
a document stating that the contribution is from both
individuals, may the contribution be reported that way?
No. A document must accompany the contribution at the time
the contribution is received in order for the contribution to be
reported from both individuals. This is true for contributions
made by check or electronic means.
J. If a potential donor takes me out to dinner to discuss my
school board campaign and pays for my meal, do I report
the meal as a nonmonetary contribution?
the meal would be considered a gift to you, not a contribution.
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Authority
The following Government Code sections and Title 2 regulations
provide authority for the information in this chapter:
Government Code Sections
82004.5Behested Payment.
82015Contribution.
82018Cumulative Amount.
82025Expenditure.
82025.5
82036Late Contribution.
82041.3Made at the Behest of.
82047Person.
84105
84211Contents of Campaign Statement.
84216Loans.
84300
84302Contributions by Intermediary or Agent.
84306Contributions Received by Agents of Candidates and
Committees.
85308Family Contributions.
85311
85312
85700
85704Prohibition on Earmarking.
Title 2 Regulations
18215Contribution.
18215.1
18215.2Uncompensated Internet Activity by Individuals that is not
a Contribution or Expenditure.
18216Enforceable Promise to Make a Payment.
18421.1Disclosure of the Making and Receipt of Contributions.
18421.3Reporting of Contributions and Expenditures Collected by
18421.31 Text Message Contributions.
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18423Payments for Personal Services as Contributions and
Expenditures.
18427.1
18428Reporting of Contributions and Independent Expenditures
Required to be Aggregated.
18430
18432.5Intermediary and Earmarked Funds Disclosure.
18523Nondesignated Contributions or Loans.
18531.7Payments for Commun
18533Contributions from Joint Checking Accounts.
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4
CHAPTER
CR
ONTRIBUTIONESTRICTIONS
Although the Political Reform Act (Act) is primarily a disclosure law,
there are several important restrictions and prohibitions on receiving
contributions. This chapter reviews these restrictions and prohibitions,
as well as some that are contained in laws other than the Act.
In addition, while the receipt of campaign contributions generally
performance of his or her duties, contributions may be the source
also appointed to certain boards or commissions. The section on
law.
A. Local Contribution Limits
The Act does not contain contribution limits for local candidates,
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but provides that cities and counties may adopt contribution limits
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applicable to their elections. Many California cities and counties have
adopted campaign ordinances that include contribution limits and other
disclosure provisions.
and counties with local campaign
contribution limits, candidates and committees should contact their
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B. Restrictions under the Political Reform Act
Reporting the True Donor
If a contribution of $100 or more is received from a single source in a
460. If a contribution is received through an intermediary, both the
(See Chapter 3 for additional information about intermediaries.)
Failure to disclose the true source of a contribution is often referred
to as campaign money laundering, which is a serious violation of the
individual employees for contributions so that the committee receiving
the contributions discloses the employees rather than the true source
of the contribution (the employer) on campaign disclosure reports.
Another occurrence is when a person (organization, business,
individual) makes a contribution to another person with the condition,
agreement or understanding that the payment will be subsequently
used for political purposes, such as a contribution to another
committee. It is a violation for persons to conceal their identities by
contributing through another person.
Committee treasurers must inquire about any information that a
person of reasonable prudence would question based on all available
information. It is not possible to describe every situation that might
Ex 4.1
correctly. Some examples are the size of the contribution, the reported
source, and the likelihood of that source making a contribution of the
size reported.
If it is discovered that a committee received a contribution and the
must be paid to the Secretary of State for deposit in the State General
Fund. When the action is brought under a local campaign ordinance,
a local committee may pay the contribution to the local jurisdiction for
deposit in its general fund.
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Cash Contributions
The committee may not accept a cash contribution of $100 or more.
Such a contribution will it is not deposited
or spent and is returned to the contributor prior to the end of the
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reporting period of the campaign statement on which the contribution
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would otherwise be reported. Even if the contribution is inadvertently
if it is refunded within 72 hours
of receipt. However, a cash contribution of $1,000 or more that is
received in the 90 days before the election, including the date of the
election, that is inadvertently deposited must be refunded within 48
hours in order to no
Anonymous Contributions
Anonymous contributions of $100 or more are prohibited. If a
committee receives a cash contribution of $100 or more from an
unknown source, it must be sent to the Secretary of State for deposit
in the State General Fund.
Contributions Made by M
Contributions of $100 or
ted and must be returned to the
contributor, or, if made anonymously, sent to the Secretary of State for
deposit in the State General Fund.
All monetary contributions of $100 or more must be made by written
instrument (such as a check) containing the name of the donor and
drawn from the account of the donor or the intermediary. Contributions
may also be received by credit card (including over the Internet), wire
transfer, or other electronic means. (See Chapter 3.)
Contributions must be made in the name by which the contributor is
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Commingling Funds
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Tip
Campaign funds may not be commingled with
account that contains personal funds. In general, campaign funds may
not be used for personal expenses. (See Chapter 5 for information
about the use of campaign funds.)
A contribution may not be delivered to or received by another person,
personally or through an agent, in the State Capitol or any other state
of a copy or facsimile
of a contribution, and the original or a copy of a contribution transmittal
letter. This prohibition does not apply to contributions received or
Contributions from State Lobbyists
to which the candidate is seeking election. The lobbyist also may
State Lobbyist and Lobbying Firm Fundraisers
A fundraiser held in the home of a state lobbyist is considered a
prohibited from holding a fundraiser in his or her home for a candidate
seeking election to a governmental agency that the lobbyist is
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Federal Law Prohibitions: Contributions from Foreign Nationals
(including Foreign Principals and Foreign Governments)
Committees may not solicit or accept contributions from foreign
nationals. Federal law prohibits contributions and expenditures
solicited, directed, received or made directly or indirectly by or from
foreign nationals in connection wi
or local. This prohibition includes contributions made to political
committees. Furthermore, it is a violation of federal law to knowingly
provide substantial assistance in the making, acceptance or receipt
of contributions or in connection with federal and nonfederal elections
to a political committee. This prohibition includes, but is not limited
to, acting as an intermediary for foreign national contributions. (52
USCS Section 30121).) Contact the Federal Election Commission for
information at (800) 424-9530 or info@fec.gov.
Federal Law Prohibitions: Contributions from National Banks or
Federally-Chartered Corporations
National banks and federally-chartered corporations are subject to
federal law prohibiting particular contributions and expenditures in
connection with local, state, or federal elections. (The Federal Election
Election Commission for information at (800) 424-9530 or info@fec.
gov.
Soliciting Contributions from Public Employees
Government Code Section 3205 prohibits a local candidate from
knowingly, directly or indirectly, soliciting a political contribution
from any employees of his or her agency or from a person on an
employment list of that agency. There is an exception for solicitations
the local district attorney.
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C. Public Funds and Public Resources
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Under Government Code Section 85300, the use of public moneys for
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resolution, or charter.
Please note that at the time of this publication, recently enacted
provisions of Section 85300 are currently the subject of a court
challenge. (See Super. Ct.
Sacramento County, 2016, No. 34-2016-80002512.)
In addition, laws outside the Act prohibit the use of public resources,
Ex 4.2
Vargas v. City of Salinas (2009) 46 Cal
4th 1.)
or consultant of a local agency from expending or authorizing the
expenditure of any local agency funds to support or oppose a
candidate or ballot measure. For further information about laws
952-5225 or the local district attorney.
Generally, campaign contributions received in connection with an
from voting on a matter affecting the contributor. However, if an
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board or commission, he or she may be restricted from soliciting or
Ex 4.3
receiving campaign contributions from persons with business before
the board or commission. He or she may be subject to Government
Code Section 84308 which:
campaign contributions of more than $250 from any party,
participant, or agent of a party or participant, while a proceeding
involving a license, permit, or other entitlement for use is
following the date of that decision. This prohibition applies even
when the contribution is for another candidate.
Requires disclosure of all such campaign contributions and also
Ex 4.4
contributions from a party or participant within 12 months
preceding the decision.
Who is Covered?
Generally, appointed board members, commissioners, or individuals
who head state or local government agencies and who make decisions
in proceedings involving licenses, permits, or other entitlements for
use are subject to Section 84308. Common positions include:
Ex 4.5
Planning Commissioners
Members of redevelopment agencies which are not entirely
comprised of elected members of the same agency
Transportation Authority members
Air Quality Management District members
Waste Management Authority members
California Coastal Commissioners
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Exempted Agencies
Section 84308 does not apply to the following agencies:
Judicial branch
Legislature
Board of Equalization (Gov. Code Section 15626 applies)
Local agencies whose members are elected by the voters (e.g.,
board of supervisors, city council, or school board)
Committees of an agency that are comprised solely of elected
members of the same agency (e.g., city councilmembers who
Elected members of an agency, all of whom also serve as the
governing body of another agency (i.e., city councilmembers
who also serve on opment agency board)
In determining whether a board or commission is exempt for purposes
of Section 84308, the focus should be on the actual make-up of
the board or commission. For example, the governing board of a
sanitation district may consist of both elected and appointed members,
but which, in fact, consists solely of the board of supervisors, is
exempt under Section 84308.
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Authority
The following Government Code sections and Title 2 regulations
provide authority for the information in this chapter:
Government Code Sections
82015Contribution.
84300
84301Contributions Made Under Legal Name.
84302Contributions by Intermediary or Agent.
84304Anonymous Contributions.
84307Commingling with Personal Funds.
84308
84309
Buildings.
85700
85701Laundered Contributions.
85702Contributions from Lobbyists.
85704Prohibition on Earmarking.
Title 2 Regulations and Opinion
18215Contribution.
18432.5Intermediary and Earmarked Funds Disclosure.
18438.1
84308.
18438.5Aggregated Contributions Under Government Code
Section 84308.
18438.6Solicitation, Direction, and Receipt of Contributions Under
Government Code Section 84308.
18438.7
Section 84308.
18438.8Disclosure Under Government Code Section 84308.
18439
18572
Pelham
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5
CHAPTER
UC F
SEOFAMPAIGNUNDS
who control the expenditure of campaign funds, is strictly regulated.
The expenditure of campaign funds must be reasonably related to a
political, legislative, or governmental purpose.
campaign expenditures, the expenditure must be directly related to a
political, legislative, or governmental purpose. A substantial personal
Quick
Tip
regarding the use of campaign funds for such purposes. If the
examples are not helpful, contact the FPPC for assistance about
A. Campaign Expenditures
Election Night Celebrations
Costs associated with election night celebrations or similar campaign
events are considered to be directly related to a political, legislative, or
ees and other costs related to administrative,
civil, or criminal litigation may only be paid with campaign funds if
the litigation is directly related to activities of the committee that are
consistent with its primary objectives. Campaign funds may be used to
pay for expenses related to the following:
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Defense of an action for violation of state or local campaign,
Litigation to secure a place on the ballot or challenge the
Compliance expenses (for example, completing campaign
disclosure reports).
Reimbursements
If a bank account is required (see Chapter 1), the candidate must
deposit personal funds in the campaign bank account and make
Ex 5.1
expenditures from that account instead of spending personal funds for
the campaign and later seeking reimbursement from campaign funds.
However, any other individual (e.g., a volunteer or campaign worker)
may make expenses from personal funds and be reimbursed, so long
as the expenses are incurred for political, legislative, or governmental
reimbursements.)
Automobile Lease or Purchase
When making payments associated with leasing, purchasing, or
operating a vehicle, such as insurance, maintenance, and repairs,
the campaign committee must be the lessee or hold title to the
treasurer, or any other person who may approve campaign
expenditures, or a member of any such person
(spouse or registered domestic partner and dependent children).
a member of any of these
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Reimbursed Automobile Expenses
immediate family member, treasurer, and committee staff for use of a
personal vehicle if the use is directly related to a political, legislative, or
governmental purpose. Documentation should be kept which includes
manner approved by the Internal
Revenue Service for deducting mileage expenses. The rate for
reimbursement may not exceed that allowed under Internal Revenue
Code Section 162. For more details, the Internal Revenue Service
may be contacted at (800) 829-1040 (www.irs.gov).
Ex 5.2
Clothing
The purchase of clothing is a personal expense. The committee
may not use campaign funds to pay for a cand
casual clothing. Specialty clothing, such as formal wear worn by an
the use of such clothing is directly related to a political, legislative, or
governmental purpose.
Contributions to Other Candidates and Committees
Ex 5.3
Candidates may make contributions to other candidates and
committees unless prohibited by local rules. Contributions to certain
state committees are subject to limitations.
Donations
Campaign funds may be used to make donations or loans to bona
Ex 5.4
related to a political, legislative, or governmental purpose. In addition,
committee treasurer, or any individual with authority to approve the
expenditure of campaign funds, or
family member (spouse or registered domestic partner and dependent
children).
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Equipment and Appliances
Ex 5.5
Campaign funds may be used to buy, lease, or refurbish equipment
or appliances, but only if their use is directly related to a political,
legislative, or governmental purpose. As with restrictions on vehicles,
individual may be listed as owner or lessee.
Fines, Penalties, Judgments, and Settlements
penalties, judgments, and settlements:
Parking citations received while performing political, legislative,
or governmental activities
Fines assessed in relation to situations in which the use of
campaign funds to pay for an attorney is allowed (discussed
above)
Statements of Economic Interests (Form 700)
Ex 5.6
penalty, judgment, or settlement relating to an improper use of
campaign funds or an action involving bribery under Penal Code
Section 86.
Food
A committee may use campaign funds to purchase a meal with a
cost of $200 or less, so long as the expenditure is reasonably related
to a political, legislative, or governmental purpose. However, if the
aggregate cost of the meal is more than $200, the expense must be
Ex 5.7
directly related to one of these purposes. When a candidate controlled
committee reports itemized expenditures for gifts, meals, or travel,
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Future Election
Campaign funds leftover after an election may be redesignated for a
future election to seek the
so long as the funds are not
ddition, campaign funds leftover after an election
may be transferred to a new bank account for a future election to seek
a so long as the funds are
is a discussion on when leftover fund
end of this chapter. See Chapter 11 for the other requirements that
Gifts
Unless directly related to a political, legislative, or governmental
purpose, personal gifts may not be paid for with campaign funds.
However, gifts of less than $250 in a calendar year to campaign
employees or workers are permitted because they are considered to
be directly related to a political, legislative, or governmental purpose.
When a candidate controlled committee reports itemized expenditures
described in Chapter 8.
Health-Related Expenses
for its employees or independent contractors. However, campaign
funds may not be used to pay for other health-related expenses such
as health club dues, special dietary foods, or medical check-ups.
Independent Expenditures
Government Code Section 85501 states that a candidate controlled
committee may not make independent expenditures and may not
contribute funds to another committee for the purpose of making
independent expenditures to support or oppose other candidates.
However, a recent Sacramento County Superior Court decision in
found
Section 85501 unconstitutional and enjoined the Commission from
enforcing that provision.
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Before making an independent expenditure to support or oppose
another candidate, committees should seek advice from the FPPC. An
advice letter (Downing, No. A-14-148) has been issued on the matter.
independent expenditures to support or oppose a ballot measure.
Loans
Campaign funds may be used to make loans to other political
committees, subject to applicable limits, if any. Transfers from a local
his or her state committee must be attributed
to the original contributors. See Campaign Disclosure Manual 1 for
State Candidates for more information on transfers and attribution.
authority to approve the expenditure of campaign funds, or any such
ber. The loan must be reasonably
related to a political, legislative, or governmental purpose. Campaign
funds may not be loaned to an individual or to an entity other than
those described above.
Professional Services
When the committee reasonably requires the services of
professionals, such as accountants or attorneys, their fees may be
paid with campaign funds as these expenditures are considered to
be directly related to a political, legislative, or governmental purpose.
(See below for restrictions on salary and compensation.)
Real Property
The committee may not purchase real property. It may, however,
lease property for up to one year, so long as its use is directly related
to a political, legislative, or governmental purpose. The candidate,
res, or an immediate family
member of any of these persons may not be a lessee or sublessor, or
hold legal title to the leased property.
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Refunding Contributions
The return of contributions to contributors is permitted.
Returning Contributions Lacking Contributor Information
Ex 5.8
When a contribution of $100 or more is received in a calendar year
from a single contributor, the committee must di
name and address, and, if the contributor is an individual, his or
her occupation and employer. If the committee does not have this
information in its records within 60 days of receipt of the contribution, it
must be returned to the contributor. (See Chapter 2.)
Salary and Compensation
tures, may not receive a salary or other
compensation from the committee for the performance of political,
legislative, or governmental activities. The committee may pay for
professional services such as an accountant, however, even if the
accountant has authority to sign committee checks.
Ex 5.9
compensation from campaign funds held by a controlled committee of
Security Systems
A candidate may use campaign funds to purchase an electronic
security system. To do so, the candidate must have received
threats to his or her physical safety because of his or her status as a
appropriate law enforcement agency. No more than $5,000 may be
spent and a report to the FPPC is required.
Tickets for Entertainment and Sporting Events
Campaign funds may not be used to purchase entertainment and
of the committee, unless attendance at the event is directly related to a
political, legislative, or governmental purpose.
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Tickets to Political Fundraisers
A committee may purchase tickets to political fundraisers (subject to
Travel
A committee may use campaign funds to pay for travel or
with authority to approve res, or staff of
the committee so long as the standards set by Internal Revenue
Code Sections 162 and 274 (deduction of travel expenses for tax
purposes) are complied with. Contact the Internal Revenue Service
at (800) 829-1040 for more information. When a candidate controlled
committee reports itemized expenditures for gifts, meals, or travel,
Airline Mileage Programs
Some airlines have mileage programs that allow individuals to earn
free tickets or other awards. These mileage credits and awards
belong to the individual traveler, not the committee. The committee is
not required to report either the receipt of the mileage credit awards or
the redemption of the credits.
B. Surplus Funds
There are restrictions on how campaign funds held by an elected
may not be used for a future election. See
Chapter 11 for information about all requirements that must be met in
order to use leftover campaign funds for a future election before the
funds become surplus.
raised, or on the 90th day after the end of the postelection reporting
period following his or her defeat, whichever occurs last. Campaign
funds held by a non-incumbent defeated candidate or a candidate
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that withdrew become surplus on the 90th day after the postelection
reporting period following the election. The end of the postelection
of the calendar year and December 31 for elections held during the
last six months of the calendar year.
Surplus funds may only be used to make the following
expenditures:
expenses.
Refunds to contributors.
effect on the candidate, on an
immediate family (spouse or registered domestic partner and
children), or the campaign treasurer.
Contributions to a political party committee, so long as the funds
are not used to make contributions in support of or opposition to
For example, funds earmarked
for overhead expenses.)
Contributions to support or oppose any candidate for federal
California, or any ballot measure.
Payments for professional servic
litigation that arises out of campaign or election activities.
Payment for an electronic security system. Contact the FPPC
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Answering Your Questions
A.
reporting services?
Yes. The FPPC does not endorse or recommend any particular
websites of the California Political Attorneys Association and the
California Political Treasurers Association.
B.
have any problem winning my seat. I would like to return
some of my contributions to my contributors. May I do
this?
At any time during the campaign, you may return all or part of a
contribution to your contributors.
C. I am a candidate. I make long-distance phone calls on
my home phone to request support from organizations
statewide. How may I pay for them?
When the bill arrives and there are additional charges that can
be directly attributed to the campaign activity, the committee
should pay for that portion. If the personal charges are
not changed by the campaign activity, there is no reporting
required.
D. May I use campaign funds to pay a babysitter for the
evenings that I am out campaigning?
You may use campaign funds to pay a babysitter, but only up to
$200 per event.
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E. As a candidate, I will be using my personal car to get
around during the campaign. Is mileage considered a
reportable contribution if I do not want to be reimbursed?
No. Incidental use of your personal car for campaign purposes
is not considered a contribution and is not reportable.
F. May I use campaign funds to have an additional telephone
line put in my home?
Yes, as long as the additional phone line is used for campaign
purposes only. If, after the campaign, you choose to retain the
additional phone line for personal purposes, you must pay the
campaign what it would cost to install an additional line at that
time.
G. Is it permissible to use campaign funds to pay an
independent contractor (e.g., the campaign consultant)
additional money if I win my election?
Yes. You may use campaign funds to pay a contractor for fees
that are part of the written contract.
H. May I host a victory party or give bonuses to my campaign
workers?
Yes. In most cases, the bonuses would be considered gifts and
would be limited to $250 per calendar year.
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I. I lost my election and have funds remaining. May I, a
non-incumbent, use the leftover funds to run again in two
years?
If you wish to use funds left over from an unsuccessful race for
amend your existing Form 410 within 90 days after the end of
the postelection reporting period. For elections occurring in the
reporting period is June 30. For elections occurring in the last
six months of the calendar year, the end of the postelection
reporting period is December 31. If you plan to run for a
be used for a future election.
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Authority
The following Government Code sections and Title 2 regulations
provide authority for the information in this chapter:
Government Code Sections
82022.5Election-Related Activities.
82025Expenditure.
82044Payment.
84307.5Fundraising Payments Made to a Spouse or Domestic
Partner.
85201Campaign Bank Account.
85501Prohibition on Independent Expenditures by Candidate
Controlled Committees.
85700
89511Campaign Funds Held by Candidates and Committees.
89511.5
89512
89513
89514Use of Campaign Funds
89515Use of Campaign Funds for Donations and Loans.
89516
89517Use of Campaign Funds for Real Property, Appliances or
Equipment.
89517.5Use of Campaign Funds for Security System.
89518Use of Campaign Funds for Compensation.
89519Use of Surplus Campaign Funds.
Title 2 Regulations
18526Reimbursement of Expenditures.
18570
18951Surplus Funds.
18960
18961Incidental Use.
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6
C
OMMUNICATIONS
CHAPTER
Campaigns reach the voters through political communications
including television, radio, and Internet advertising, mailers, billboards,
that committees report most payments in connection with political
communications as direct expenditures, nonmonetary contributions
to the campaign, or independent expenditures. As discussed below,
however, certain types of communications may not be reportable at
all, or may be subject to special reporting requirements. This chapter
reviews common communications in a campaign and how payments
for the communications are reported.
to inform voters who is paying for the communication. Chapter 7
discusses the disclaimer requirements that apply to communications,
including mass mailings, made by candidate controlled committees
for their own election and communications made by non-controlled
committees that are primarily formed to support or oppose a
candidate.
Campaign
Quick
campaign committee will be funding
Tip
campaign committee makes expenditures
for communications in furtherance of
committee simply reports these direct expenditures. The expenditures
rm 460, Schedule E, as described
in Chapter 8.
B. Payments for Communications Made by Others
Generally, when someone other than the candidate or his or her
committee pays for a communication that expressly advocates support
of the candidate, and the communication is coordinat
date, the candidate has received a
nonmonetary contribution
that must be repor
controlled committee.
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Payments for communications expressly advocating support of or
opposition to a candidate, which are not coordinated with or made at
independent expenditures
the behest of the candidate, are , and the
the person making the independent expenditure may have reporting
obligations.
Whether a communication is a contribution, an independent
expenditure, or some other type of reportable payment depends
on several facts, including whet
Quick
or ballot measure. The information and examples below may be of
Tip
assistance in making that determination. However, it is impossible to
address all of the types of communications in a campaign. If presented
Communications paid for by a ca
support his or her own candidacy, or to oppose his or her opponent,
are direct campaign expenditures, not contributions or independent
expenditures.
In most cases, communications paid for by a non-candidate controlled
committee primarily formed to support or oppose a candidate are
considered contributions or independent expenditures.
Coordinated Communications - Nonmonetary Contributions
When someone other than the candidate or his or her committee
pays for a communication that is coordinated with or
or his or her committee, the payment for the
communication is a nonmonetary contribution to the affected candidate.
A payment is coordinated
or committee under each of the following situations:
It is made at the request, suggestion, or direction of, or in
cooperation, arrangement, consultation, concert, or coordination
with the candidate or committee on whose behalf, or whose
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The candidate or committee has made or participated in making
any decision about the content, timing, location, mode, intended
audience, volume of distribution, or frequency of placing the
communication.
A creator, producer, or distributor of the communication, or the
person paying for the communication has had a discussion
with the candidate or committee regarding the content, timing,
location, mode, intended audience, volume of distribution, or
frequency of placing the communication.
There is a rebuttable presumption that an expenditure funding a
coordinated
communication is withof a
candidate or committee if:
It is based on information about
provided by the candidate or committee to the person making
the expenditure, such as information concerning campaign
messaging, planned expenditures, or polling data.
Agent.
It is made by or through any agent of the candidate
or committee in the course of lvement in the
current campaign.
beginning 12 months prior to the date of the primary or special
election in which the candidate is on the ballot for an elective
Common Consultants.
The person making the expenditure
Quick
retains the services of a person who provides either the
Tip
candidate or the committee supporting or opposing the ballot
measure with professional services related to campaign or
fundraising strategy for the current campaign.
Republication.
The communication replicates, reproduces,
republishes, or disseminates, in whole or substantial part, a
communication, including video footage, designed, produced,
paid for, or distributed by the candidate or committee.
Fundraising.
The committee making the expenditure is
primarily formed to support the candidate or oppose their
opponent and in the course of the current campaign, the
appears as a speaker at a fundraiser for the committee making
the expenditure.
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Former Staff.
The person making the expenditure is
established, run, or staffed in a leadership role, by an individual
who previously worked in a senior position or advisory capacity
campaign.
The person making the expenditure
is established, run, staffed in a leadership role, or principally
funded by an individual who is an immediate family member of
the candidate.
not considered to be coordinated
However, an expenditure is with
or made at the behest of a candidate or committee based solely on
any of the following circumstances:
Interview.
A person interviews the candidate on issues
affecting the person making the expenditure.
Candidate Material.
The person making the expenditure has
obtained a photograph, biography, position paper, press release,
or similar material from the candidate or
General Request for Support.
The person makes the
for support by a candidate or committee, provided that there
is no discussion with the candidate or committee prior to the
expenditure relating to details of the expenditure.
Public Appearance.
The person making the expenditure
has invited the candidate or committee representative to
make a public appearance befo
employees, shareholders, or their families, provided that there
is no discussion with the candidate or committee prior to the
expenditure related to details of the expenditure.
Prior Contribution.
The person making the expenditure has
made a contribution to the candidate or committee.
Informed after the Expenditure is Made.
A person informs
a candidate or committee that the person has made an
expenditure, provided that there is no exchange of information,
not otherwise available to the public, relating to details of the
expenditure.
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The expenditure is made at the request or suggestion of the
committee.
Hyperlink.
The communication includes a hyperlink to the
Internet website or other social media page of a candidate or
ballot measure committee.
communication is considered independent versus made at the behest
of a candidate or committee. Because the determination is based
guidance.
Independent Expenditures
An independent expenditure is a payment for a communication that:
Expressly advocatesclearly
the election or defeat of a
not coordinated
The communication is
candidate or committee.
photograph, or status as a candidate or
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Express Advocacy
Quick
Tip
A communication expressly advocates support of or opposition to a
Magic Words.
ote against,
Unambiguously Urges.
The communication is made within
candidate, and when taken as a whole, it unambiguously
urges a particular result in an election. The message must be
susceptible of no reasonable interpretation other than as an
A committee or person making independent expenditures must
be aware that the communication cannot be coordinated with the
affected candidate or measure committee. If there is coordination, the
payments are reported as contributions.
Ex 6.1
Ex 6.2
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Ex 6.3
C. Other Communications
Endorsements
An endorsement of a candidate may become a contribution or an
independent expenditure when a payment is made in connection with
the endorsement.
Frequently, a candidate will publish his or her endorsement by another
Ex 6.4
payment made to communicate the endorsement is not a contribution
was made at the behest of both individuals.
If a candidate pays for a communication supporting his or her own
candidacy that also supports or opposes a ballot measure, the
payment is not a contribution or independent expenditure made in
connection with the ballot measure.
If a candidate pays for a communication that supports another
candidate, and the payment is not made at the behest of the endorsed
candidate, the payment is not considered to be an independent
expenditure if: (1) the candidate paying for the communication also
Ex 6.5
communication is targeted only to potential voters in the paying
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Ex 6.6
Quick
rnet Communications
Tip
Paid Advertisements on the Internet.
A paid advertisement that a
candidate or committee places on the Internet is reportable under the
Act. A candidate or committee that pays to place a communication on
rt the expenditure on a campaign
statement. Similarly, a candidate must report a payment to purchase
email addresses or any payment for general or public advertisements
on Internet sites.
When an individual Ex 6.7
who is not compensated by a candidate or committee sends
communications over the Internet (e.g., emails, social networking,
blogging, website postings, and hyperlinks) that support or oppose
a candidate or measure, these activities do not constitute reportable
contributions or expenditures. Regulation 18215.2
political activity on the Internet.
Paid Blogger.
The safe harbor for
Internet activity does not apply to a blogger a committee pays to
support or oppose a candidate or measure. The committee must
report payments to that individual. The safe harbor also does not
Ex 6.8
apply to a blogger who receives a majority of his or her advertisement
revenue from a single candidate or committee because he or she is
not considered to be providing uncompensated personal services.
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D. Non-Contributions
There are some communications that are not considered to be
contributions to the ccontrolled committee.
Ex 6.9
Debates
If a nonpartisan organization hosts a debate or other forum and invites
at least two opposing candidates, a payment for the event is not a
contribution to the candidates.
Similarly, a payment for a debate or forum sponsored by a political
if a majority of the candidates for on are invited to
participate.
Meetings
Ex 6.10
union, or professional organization for reasonable overhead expenses
associated with a regularly-scheduled meeting at which a candidate
speaks is not a contribution if the organization pays no additional costs
Non-Political Communications
A payment made at the behest of a candidate for a communication by
the candidate or any other person is not a contribution to the candidate
if the communication:
Does not refer to thcampaign, or his or
Does not solicit contributions to the candidate or to third persons
for use in support of or opposition to the candidate.
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Member Communications
Ex 6.11
Payments made by an organization or its sponsored committee
for a communication that supports or opposes a candidate are not
contributions or expenditures as long as the communication is made
employees, or shareholders,
or the families of its members, employees, or shareholders.
The payments may not be for general public advertising, such
as billboards, newspaper ads, or radio or television ads. If the
tee makes the payments, the
committee would report the payments as being made for general
member communications.
Payments made by a political party for a communication that supports
a candidate are not contributions to the candidate as long as the
communication is distri
Ex 6.12
and families of its members and employees. The party must report
the payments, however, as if they were contributions or independent
expenditures.
News Stories
A payment for the cost of publishing or broadcasting a news story,
commentary, or editorial is not a contribution when the payment is
made by a federally regulated broadcast outlet or a regularly published
newspaper, magazine or other periodical of general circulation that
routinely carries news, articles, and commentary of general interest.
Voter Registration
Ex 6.13
A payment made at the behest of a candidate as part of voter
registration or get-out-the-vote activities is not a contribution if the
communication does not expressly advocate support of or opposition
to the candidate.
Voting Records
as only the voting records are published, the communication is not
considered a contribution or an independent expenditure.
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Answering Your Questions
A. A labor union pays for a mailing advocating the election of
a candidate for city council. The mailing list includes both
union members and non-union members and 20% of the
mailing costs are attributed to non-union members. Must
the candidate report the full cost of the mailing as a non-
monetary contribution?
No. The candidate may pro-rate the cost and report as a
nonmonetary contribution only the mailing costs for the non-
union members.
B. A representative of an environmental organization
interviewed a candidate for county supervisor about
issues affecting the environment. Later, the candidate
learned that the organization paid for a radio advertisement
advocating the election of that candidate. Must the
candidate report a nonmonetary contribution?
No. An expenditure is not made at the behest of a candidate
just because a person interviews the candidate on issues
affecting the person making the expenditure. As long as the
candidate did not coordinate with the organization to produce
the advertisement in any other way, the organization made an
independent expenditure, not a contribution to the candidate.
C. I was elected to the city council in November. May I assist
an independent expenditure committee that supported my
candidacy in retiring its debt now that the election is over?
coordination, cooperation, or consultation of the candidate. If
you assist the committee, the expenditures are not considered
independent.
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D.
it permissible to wear my law enforcement uniform in my
campaign literature?
The Political Reform Act does not contain restrictions related to
laws may apply. Candidates should contact the District Attorney
or City Attorney.
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Authority
The following Government Code sections and Title 2 regulations
provide authority for the information in this chapter:
Government Code Sections
82015Contribution.
82025Expenditure.
82031Independent Expenditure.
82041.3Made at the Behest of.
82044Payment.
82047Person.
84211Contents of Campaign Statement.
85312
Title 2 Regulations
18215Contribution.
18215.2Uncompensated Internet Activity by Individuals that is not
a Contribution or Expenditure.
18225.7Made At the Behest
Expenditures.
18421.5
Communications.
18450.1
18531.7Payments for Communi
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7
CHAPTER
AD
DVERTISEMENTISCLAIMERS
This chapter describes the disclaimers required by the Political Reform
other advertisements made by
candidate controlled committees and committees primarily formed to
support or oppose a candidate. A disclaimer is the portion of a political
committee that paid for and authorized the
communication. The basic disclaimer for most co
The disclaimer ensures that the committee
accuracy of political communications given that the First Amendment
provides broad protection for political speech.
Disclaimer Example:
Paid for by
Manuel Alvarez
for Mayor 20XX
P.O. Box 1744
Oakmont, CA 95434
Manuel Alvarez for Mayor
A. Which Communications Require an Ad Disclaimer?
Candidate Controlled Committees
Under the Act, a candidate controlled committee must include a
disclaimer on mass mailings and certain telephone calls advocating
In addition, radio and television
advertisements require
billboards and yard signs, when they are paid for by a candidate
controlled committee in support s own campaign.
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However, the FPPC recommends pl
number on all public campaign
materials.
Primarily Formed Committees Making Independent Expenditures
Under the Act, committees that are primarily formed to support
or oppose a candidate must include a disclaimer on the following
communications:
Mailings, including emails
Paid telephone calls
Radio ads
Television ads
Electronic media ads, including audio only ads
Newspaper ads
Quick
Tip
Billboards
Yard signs
Door hangers
Flyers
Posters
Advertisement Disclaimer Exceptions
Generally, a disclaimer is not required on the following advertisements:
Regular-size campaign buttons and bumper stickers, pins, or
magnets
Pens, pencils, rulers, mugs, potholders, key tags, golf balls and
similar small campaign promotional items where a disclaimer
cannot be conveniently printed
T-shirts, caps, hats, and other articles of clothing
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Skywriting and airplane banners
Committee checks and receipts
B. How Must the Disclaimer Appear?
Disclaimers on political ads must be shown clearly so they may be
easily understood by the public. Written disclaimers must be printed
clearly and legibly. Spoken disclaimers must be clearly audible and
intelligible. Disclaimers must also be written or spoken in the same
language used in the advertisement. The charts on the following
pages specify requirements for color contrast, print font size,
placement location, and the amount of time the disclaimer is required
to appear on screen.
C. Advertisement Disclaimers for Communications by
Candidate Committees for their own Election
The disclaimer on a communication
for his or her own eld for by \[committee
noted in the chart below.
CommunicationDisclaimer and Manner of Display
All mass mailings
substantially similar pieces of mail
sent within a calendar month
must be in the same color and font as the
committee name and address and immediately in front of or
above the name and address
If sent by more than one candidate or committee:
o
Also on at least one insert in the mailing
No less than 6-point type and in a contrasting print or color
name, address and ID number are recommended but not
required
All mass electronic mail
must be in at
than 200 substantially similar emails least the same size font as a majority of the text (no address is
sent within a calendar monthrequired onmasselectronicmailings)
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CommunicationDisclaimer and Manner of Display
Newspaper ads
Refer to the Elections Code for newspaper ad disclaimer
requirements
Telephone calls advocating
-
500 or more calls similar in nature campaign reports
and made by:
o
Paid individuals other than
the candidate, campaign This call was authorized by \[name of committee\]
manager or volunteers
Any time during the call
No ID required on telephone calls personally dialed by
candidate, campaign manager or volunteers
Radio:
Radio and television ads
appears on most recent Form 410 at the beginning or end of
advertisement read in a clearly spoken manner with pitch and
tone substantially similar to the rest of advertisement
Television:
it appears on most recent Form 410 shown for at least four
seconds. Letters must be in a type size greater than or equal to
four percent of the height of the screen
Electronic Media ads
committee name
(Websites, blogs, Twitter feeds, recommended but not legally required
Facebook)
Billboards, signs (including yard
and committee ID number are
signs), faxes, business cards,
recommended but not legally required
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D. Advertisement Disclaimers for Independent Expenditure
Ads Made by Committees Primarily Formed to Support or
Oppose a Candidate
When a committee primarily formed to support or oppose a candidate
pays for an advertisement that is an independent expenditure, the
advertisement disclaimer must include the information contained in
the chart below including the names
contributors.
Top Contributors
rsons from whom the committee
paying for an advertisement has received its three highest cumulative
contributors of identical amounts qualify as top contributors, the most
recent contributor of that amount must be listed as the top contributor.
CommunicationDisclaimer and Manner of Display
Print ads designed to be
individually distributed including
461)
faxes, posters, newspaper and
magazine ads and oversized each listed on a separate
campaign buttons and bumper horizontal line, centered horizontally, in descending order,
stickers beginning with the largest contributor
(buttons 10 inches in
recipient committees)
diameter or larger and stickers 60
square inches or larger)
o
Newspaper, magazine or other print advertisements that
are 20 square inches or less must only disclose the single
top contributor of $50,000 or more
A statement that the advertisement was not authorized by
a candidate or a committee controlled by a candidate
Disclaimer Format:
Text must be in Arial equivalent font, in
at least 10-point size, in a contrasting color, and located in
a printed or drawn box with a solid white background at the
bottom of at least one page and set apart from other printed
matter
o
and
disclaimers may not appear in all capital letters
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CommunicationDisclaimer and Manner of Display
Print ads larger than those
designed to be individually
461)
distributed, such as billboards
and signs (including yard signs)
Top contributors must be
displayed from largest to smallest appearing either on: (1)
separate horizontal lines, centered horizontally or (2) one
line separated by commas
committees)
A statement that the advertisement was not authorized
by a candidate or a committee controlled by a candidate
Disclaimer Format:
Text must constitute a heaight of at least
appear in a color that has a reasonable degree of contrast
with the background
o
and
disclaimers may not appear in all capital letters
Radio ads, telephone calls and
audio only electronic media ads
461)
in descending order, beginning
with the largest contributor
committees)
A statement that the advertisement was not authorized
by a candidate or a committee controlled by a candidate
Disclaimer Format:
Must be spoken clearly for at least three
seconds at the beginning or end of the ad or call, in a pitch
and tone substantially similar to the rest of the advertisement
Radio and prerecorded telephone ads must disclose only
o
the top two contributors of $50,000 or more unless the
ad lasts 15 seconds or less or the disclaimer statement
would last more than eight seconds, in which case only
the single top contributor must be disclosed
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CommunicationDisclaimer and Manner of Display
Television and video ads
(including those disseminated
461)
over the Internet)
in descending order, beginning
with the largest contributor
committees)
A statement that the advertisement was not authorized
by a candidate or a committee controlled by a candidate
Disclaimer Format:
Text must be in a contrasting color
and in Arial equivalent type and must be underlined unless
The size for the smallest letters in the disclaimer must be
four percent of the height of the display screen unless this
causes the name of any top contributors to exceed the width
of the screen or causes the disclaimers to exceed one-third
of the display screen, the type size of the name of the top
display screen, but in no case shall the type size be smaller
than 2.5 percent of the height of the screen.
Disclaimer must appear on a solid black background on the
entire bottom third of the display screen, or bottom one-fourth
of the screen if the committee has no top contributors
Disclaimer must be displayed at the beginning or end of the
less or for at least 10 seconds of a broadcast longer than 30
seconds
Each top contributor must be disclosed on a separate
horizontal line and centered horizontally and is not required
to be underlined
The disclaimer must appear below
all other text in the solid black background in a contrasting
color, in Arial equivalent type, and in no less than 2.5 percent
of the height of the display screen and is not required to be
underlined
o
and
disclaimers may not appear in all capital letters
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CommunicationDisclaimer and Manner of Display
Electronic media ads not covered
text as a hyperlink in a contrasting
below (except video ads, see
color and font size that is easily readable by the average
above), and email
viewer*
Must hyperlink to a website containing the
o
and
disclaimers in a contrasting color and in no less than
8-point font
and
o
disclaimers may not appear in all capital letters
Must remain online until 30 days after the date of election
o
Social media ads
and
disclaimers in a contrasting color
landing page, or similar location and is not required to include
disclaimers on each individual post or comment
and
o
disclaimers may not appear in all capital letters
Not required when the only expense or cost of the
o
communication is compensated staff time unless the
social media account was created only for the purpose of
advertisements under the Act
Website
and
disclaimers in a contrasting color and in no
less than 8-point font
and
o
disclaimers may not appear in all capital letters
Electronic media ads that are See disclaimer requirements for radio ads above
audio only
*This text is not required if including it is impracticable. In
such circumstances the ad need only include a hyperlink to a
website containing the website disclaimers.
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Print Advertisement Disclaimer Example:
***
***
Paid For by Public Safety Workers and Educators to Re-Elect Supervisor Woods
20XX
Committee major funding from:
International Workers Association
State Safety Workers Association
This advertisement was not authorized by a candidate or a committee controlled by a
candidate.
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E. Mass Mailings
Quick
Tip
made when more than 200 substantially similar
pieces of mail have been sent within a calendar month. A mass
mailing also includes more than 200 substantially similar messages
distributed to the public within a calendar month through electronic
tation letters, notices of fundraising events,
newsletters sent by the candidate or committee, and other types of
campaign literature are common types of mass mailings.
Disclaimers for Emails Sent by a Candidate for their own Election
Emails must include the commit by the words
font as a majority of the text in
the email.
Disclaimers for Postal Mailings Sent by a Candidate for their own
Election
A mass mailing sent by a candidate controlled committee must
nt to and above, or
immediately adjacent to and in front of, the name and address of the
committee on the outside of each piece of postal mail. The disclaimer
must be in no less than 6-point type and in a color that contrasts
with the background (Example: no light blue disclaimers on a blue
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Mailings Sent by More than One Candidate Controlled Committee
Quick
A mass mailing sent by more than one candidate controlled committee
Tip
jacent to and
above, or immediately adjacent to and in front of, the name and
address of the committee that is paying the greatest share of the
mass mailing including costs for designing, printing, and postage. This
disclaimer must appear on the outside of each piece of mail. If two or
more committees pay equally for the mailer, the name and address
of at least one of the committees must be shown on the outside and
the names and addresses of all committees must appear on at least
one insert. The disclaimer must be in no less than 6-point type and
in a color that contrasts with the background (Example: no light blue
the address only if the ss is on its Statement
Committees Primarily Formed to Support or Oppose a Local
Candidate
Any mailing
(regardless of the number of pieces sent) paid for by a
primarily formed committee as an independent expenditure supporting
or opposing a candidate must include the disclaimers below in Arial
equivalent font, in at least 10-point size, in a contrasting color and
located in a printed or drawn box with a solid white background at the
bottom of at least one page and set apart from other printed matter.
a separate horizontal line,
centered horizontally, in descending order, beginning with the
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largest contributor. Mailings that are 20 square inches or less
must only disclose the single top contributor of $50,000 or
more.
Quick
Tip
candidate or a committee controlled by a candidate
Emails
sent by a primarily formed committee supporting or opposing a
candidate must include t
in a contrasting color and font size that is easily readable by the
average viewer. The text must hyperlink to a website containing the
an independent
disclaimers provided above in
a contrasting color and in no less than 8-point font. The website
information must remain online until 30 days after the date of election.
Recordkeeping for Mass Mailings (including Emails)
For each mass mailing and electronic mailing, the following information
a period of four years:
The method of postage used for postal mailings.
F. Telephone Calls
Calls Made by Candidate Controlled Committees for their own
Election
500 or more
If a candidate controlled committee pays for similar
telephone calls made by or paid individuals
s own election, the name of the organization
that authorized the call must be disclosed to the recipient of the call.
under the Act, the name of the candidate that paid for the call must be
disclosed to recipients. The disclos
not required for telephone
calls personally dialed by the candidate, campaign manager, or
volunteers.
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Calls Made by Committees Primarily Formed to Support or
Quick
Oppose a Candidate
Tip
If a primarily formed committee pays for a telephone call that expressly
advocates support for or opposition to a candidate, the name of
the committee must be disclosed to recipients. The disclosure
expenditure, the disclaimer must also include a statement that the
advertisement was not authorized by a candidate or a committee
controlled by a candidate. The disclaimer must also include the
ntributors of $50,000 or more during the
12-month period prior to the expenditure, if any.
Ex 7.1
Ex 7.2
Recordkeeping for Telephone Calls
A committee must retain for a period of four years the following records
for each telephone call:
If the message was live, a script of the call.
If the message was recorded, a copy of the recording.
G. Electronic Media Ads
ads, including websites, Internet ads, and mobile ads paid for by
her own election. However, the
committee ID number on all public campaign materials.
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Committees primarily formed to support or oppose a candidate making
independent expenditures for electronic media ads are subject to the
requirement and additional disclaimer
requirements as described in the chart earlier in this chapter.
H. Newspaper, Radio and Television Ads
Radio and television ads paid for by
own election must include the following disclaimers:
Radio:
name of committee as it
appears on most recent Form 410 at the beginning or end of
advertisement read in a clearly spoken manner with pitch and
tone substantially similar to the rest of advertisement.
Television:
name of committee as
it appears on most recent Form 410 shown for at least four
seconds. Letters must be in a type size greater than or equal
to four percent of the height of the screen.
r their own election. For newspaper
ad requirements, candidates and committees should check the
Elections Code.
Committees primarily formed to support or oppose a candidate making
independent expenditures for a newspaper, radio, or television ad
to support or oppose a candidate are subject to t
requirements as described in
the chart earlier in this chapter.
I. Paid Spokespersons for Ballot Measure Ads
Generally, candidate controlled committees and primarily formed
committees spend campaign funds only in connection with the
e may be times when a committee
wants to pay for an advertisement to support or oppose a ballot
measure.
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paid spokesperson in an advertisement to support or oppose a
Report, Form 511, for appearance in a ballot measure
advertisement and (2) include a disclaimer on the ad in the following
situations.
$5,000 payment to an individual in an ad:
The committee makes
expenditures totaling $5,000 or more for an indi
defeat of a state or local ballot measure.
Disclaimer on ad:
Any payment to an individual in an ad portraying a professional
The
committee makes expenditures of any amount to an individual for his
passage or defeat of a state or local ballot measure that states or
suggests that the individual is a member of an occupation that requires
engage in that occupation.
Disclaimer on ad:
raying members of
an occupation in this advertisement are compensated
spokespersons not necessarily empl
Note:
If the individual in the ad is actually a member of the
occupation portrayed, the committee may omit this disclaimer,
and shall maintain documentation
Quick
the committee must provide doc
Tip
occupation by electronic means within 24 hours.
The advertisements include print, television, video, and radio ads, as
well as telephone messages. The disclaimers on the ads must be
shown in highly visible font for print, television or video ads, or spoken
in a clearly audible manner for radio ads or telephone messages.
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J. Updating a Disclaimer
Advertisement disclaimers must be revised if a
changes, if the order of the top contributors changes, or if there is
a new $50,000 donor. Television, radio, electroni
business days. Print media, mass
mailings, or other tangible items must be amended every time an order
to reproduce is placed.
K. Penalties
Failure to comply wit
who violates the disclaimer requirements for ballot measure and
up to three times the cost of the advertisement, including placement
costs.
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Answering Your Questions
A. Are the disclaimer rules the same for candidate controlled
committees and committees primarily formed for
candidates that will be making independent expenditures?
No. Stricter disclaimer rules apply to independent expenditure
advertisements because it is less clear to the public who is
responsible for these ads. The Act requires disclaimers on a
broader range of advertisements when they are paid for by
a committee making independent expenditures. See the ad
disclaimer charts in this chapter for additional information.
B. A committee primarily formed for a candidate has agreed
to pay for several types of communications (yard signs,
a billboard, door hangers) to advocate support of the
candidate. The advertisements are prepared by the
nt. What disclaimers are
required, if any?
The same disclaimers are required as those for a primarily
formed committee making independent expenditures except for
C.
its regular monthly mailing, is the candidate required to be
D. If a committee has more than one address, can any of the
addresses be used on mass mailings?
Any address that is on the
be used.
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E. A committee pays for a
nonmonetary contribution. Must the committee paying for
the outside of the mailing?
the outside of the mailing.
ee is sending a postcard-type
mailing, may the name of the committee appear only once?
Yes. The name must appear
address must also be included.
G. Where on the outside of the mailing must the candidate
be immediately adjacent to and
above, or immediately adjacent to and in front of, the committee
name and address.
H. What type of disclaimer is required for a committee that
sends independent expenditure ads through Twitter?
Committees making independent expenditures via electronic
requirements in one of two ways: (1) providing its full disclaimer
immediately followed by a hyperlink to an Internet Web site
containing the full disclaimer statement.
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Authority
The following Government Code sections and Title 2 regulations
provide authority for the information in this chapter:
Government Code Sections
82025Expenditure.
82031Independent Expenditure.
82041.5Mass Mailing.
82044Payment.
82047Person.
84305Requirements for Mass Mailing.
84310
84501Advertisement.
84502
84503Top Contributor Disclosure.
84504
84504.1
84504.2
84504.3
84504.4
Candidates.
84504.5
and Candidates.
84505Avoidance of Disclosure.
84506.5
by Candidate.
84509Amended Disclaimers.
84511
Title 2 Regulations
18215Contribution.
18225.7Made At the Behest of
Expenditures.
18247.5Primarily Formed Committees.
18401Required Recordkeeping for Chapters 4 & 5.
18435
18440Telephone Advocacy.
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18450.1
18450.5Amended Advertising Disclosure.
18450.11Spokesperson Disclosure.
18523.1Written Solicitation for Contributions.
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8
CHAPTER
CR 460
OMMITTEEEPORTORM
Generally, candidate controlled committees and committees primarily
formed to support or oppose a candidate(s) use the Recipient
Committee Campaign Statement (Form 460) to report campaign
activity for all semi-annual and preelection statements. The Form 460
is the main campaign disclosure statement and provides the public
activity, including money coming
period, even if it was previously reported. For example, a contribution
that was already reported on the Form 497 (24-hour Contribution
Report) must still be rxt Form 460.
t Form) instead of the Form 460 if, during
the reporting period, the committee:
Has not received a contribution that must be itemized (a
Has not received any other payment of $100 or more
Quick
Tip
Has no accrued expense (unpaid bills).
A primarily formed committee that has not received any contributions
and has not made any expenditures during the six-month period
(Semi-Annual Statement of No Activity).
This chapter discusses how to complete the Form 460 and provides
examples for each type of campaign activity that may have to be
reported. The Forms 450 and 42
website and include detailed instructions for completing the forms.
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AB
12
3
4
A. Completing the Form 460 Cover Page
A
Statement Covers Period
B
Date of Election
provide the date of the election.
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1
Type of Recipient Committee
Check the appropriate box to indicate the type of committee:
Page Parts 1, 2, 3, 4, and 5.
Cover Page Parts 1, 2, 3, 4, and 7.
2
Type of Statement
(e.g., semi-annual, preelection).
3
Committee Information and Treasurer(s)
This entire section must be completed and should include the same
4
All campaign statements are signed under penalty of perjury and
its preparation, and that to the best of his or her knowledge, it is true
Some local agencies may require local candidates and committees to
they sign the statements under penalty of perjury.
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5
6
7
B. Completing the Form
5
and district number, if any. If more than one candidate controls
the committee, include the required information for all controlling
candidates in an attachment.
Related Committees Not Included in this Statement
ballot measure committee, legal defense fund committee, another
election committee), those committees must be listed. If the
candidate is aware of any primarily formed committees that exist to
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receive contributions or to make expenditures on behalf of his or her
candidacy, those committees must also be listed.
6
Primarily Formed Ballot Measure Committee
Candidate controlled committees and primarily formed candidate/
7
sought or held, and indicate whether the committee is supporting or
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C. Completing the Form 460 Summary Page
activities, including all contributions received and expenditures made
Quick
during the period covered by the statement. The Summary Page
Tip
also includes the cumulative totals for contributions received and
expenditures made during the calendar year. Although the Summary
Page is located at the beginning of the Form 460, it should be
completed last. Totals from certain schedules are carried forward to
the Summary Page.
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A
Column
reporting period as reported on Schedules A through I. If there is no
activity to report on a particular schedule, enter a zero or the word
iate line in Column A. There should be no blank
lines.
B
Column
1 of the current calendar year. However, there is an exception if a
connection with an election held in another year, such as elections
held in January or early February. In this case, the cumulation period
begins on January 1 of the year before the election and ends on the
Add the totals from Column B oflast campaign
statement (if any) to the corresponding amounts in Column A to
calculate the Column B totals for the current statement. If this is
amounts for loans and accrued expenses reported on Lines 2, 7,
and 9 of Column B from the committ. (Note: The
amounts reported on Lines 2, 7, and 9 of Column B should be the
same as the total outstanding amounts disclosed in column (d) of
Quick
Schedules B, H, and F, respectively, of the current report.)
Tip
When loans (Schedules B and H) and accrued expenses (Schedule F)
2, 7, and 9 of Column A may be negative numbers. In this case, be
with a minus sign (-) or in parentheses), and subtract them when
totaling Columns A and B.
1
Lines 1-5 (Contributions Received)
Collectively, these lines represent contributions received: monetary,
nonmonetary, and loans.
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2
Lines 6-11 (Expenditures Made)
Collectively, these lines represent expenditures made: payments,
loans made, accrued expenses (bills that are still outstanding), and
nonmonetary adjustments.
3
Lines 12-16 (Current Cash Statement)
on at the end of the reporting period. If
deposits or expenditures have been made that have not cleared
the bank account, the ce may not match the
ending cash balance.
Beginning and ending cash balances should include the total amount
paign checking and savings accounts,
plus any investments that can be readily converted to cash, such as
Line 12 (Beginning Cash Balance)
The beginning cash balance must be the same as the ending cash
reporting period, enter the amount of cash on hand on December 31.
Line 13 (Cash Receipts)
This amount represents the total of all monetary contributions and
loans received during the reporting period. Nonmonetary contributions
should not be included.
Line 14 (Miscellaneous Increases to Cash)
This amount represents increases
that are not contributions, loans, or repayments of loans made to
others. Miscellaneous increases to cash include, for example, interest
received from a bank account, refunds received from vendors, and
proceeds from the sale of campaign property or auction items. The
amount is carried forward from Schedule I.
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during the current reporting period.
Line 15 (Cash Payments)
This amount represents the total amount the committee has spent
during the reporting period, including loans made and any accrued
expenses paid.
Line 16 (Ending Cash Balance)
This amount represents the total of Lines 12, 13, and 14 minus Line
15. The amount reported on Line 16 must equal the total amount of
cash the committee has in its campaign bank account and the amount
money market accounts, shares in government bonds, or any other
investments that can be readily converted to cash.
If this is a termination statement, Line 16 must be zero.
4
Line 17 (Loan Guarantees Received)
This amount represents the total of all loan guarantees, endorsements,
or security received during the period. The amount is carried forward
from Schedule B, Part 2.
5
Line 18 (Cash Equivalents)
This amount includes investments that cannot be readily converted
to cash, as well as the balance due on all outstanding loans the
committee has made to others.
Do not include any amount that is invested in interest bearing
investments that can be readily converted to cash. These amounts
6
Line 19 (Outstanding Debts)
This amount is the total of all money owed by the committee. Using
Column B, add Line 2 (loans received) and Line 9 (accrued expenses).
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Lines 20, 21, & 22
These lines are for certain state candidates only. Local committees do
not complete these sections.
Answering Your Summary Page Questions
A. Is there any circumstance where Line 16, Ending Cash
Balance, would be a negative amount?
If you report a negative amount on Line 16, this means that
either you have made a mathematical error in your calculations
nk account is overdrawn. Rounding off
also may cause a small negative in the cash on hand balance.
B. Is there any circumstance where an amount in Column A
would be negative?
Yes. When loans and accrued expenses are paid down, the
C. What should I do if I am unable to balance my accounting
deadline extensions, complete the form as accurately as you
with the corrections as soon as possible.
D. What is the most common mistake made on the Form 460
Summary Page?
Loan repayments are often reported twice, once on Schedule B
and again on Schedule E. When the committee makes a loan
repayment, it should only be reported on Schedule B.
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D. General Rules for Reporting Contributions Received on
Schedule A
Chapter 3 provides detailed information on the following topics, as well
as other contribution reporting rules. The information below is a short
summary of some of the most common reporting rules.
If contributions totaling $5,000 or more are received from a single
source in a calendar ye must be sent to the
contributor within two weeks. If a contribution of $10,000 or more is
received from a single source within 90 days before the election or
on the date of the election, the notice must be sent within one week.
Do not send the notice if the contribution is from another recipient
committee.
Joint Checking Account
If a check is received that is imprinted with two indi
report the contribution from the person who signed the check.
However, if both individuals signed the check, or one signed the check
but both have signed an accompanying document indicating that the
contribution is from both, then report 50 percent of the contribution
amount from one individual and 50 percent from the other, unless the
Reporting Earmarked Contributions
A committee that makes a contribution to another committee
Ex 8.1
and the other committee as an intermediary at the time the earmarked
disclose the contributor and intermediary at the time the funds are
received from the intermediary. The intermediary must disclose receipt
of the funds as a miscellaneous increase to cash on Schedule I of
Form 460 at the time the funds are received and must disclose the
expenditure as the transfer of an earmarked contribution from the
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A committee that makes a contribution to another committee and
Ex 8.2
subsequently reaches an agreement with that committee that all or a
portion of the contribution would be used for another committee, ballot
measure or candidate must include a notation on its next statement
that the original contribution was subsequently earmarked, including
candidate. The committee that initially received the funds must also
include a notation on its next statement that the original contribution
was subsequently earmarked and must disclose the original
contributor to any new committee to which it transfers the earmarked
funds. The new committee shall disclose the true source of the
contribution with a notation that the contribution was earmarked to the
to the committee that received the contribution with a notation that
candidate. The committee receiving the earmarked contribution
must disclose the contributor with a notation that the contribution
the contribution is received. This committee is solely responsible for
disclosing the ultimate use of the earmarked contribution, whether
by contribution or expenditure, at the time the funds are used. If the
committee receiving the earmarked contribution contributes any
portion of the contribution to another committee to support or oppose
shall disclose the true source of the contribution to the new committee
receiving the earmarked funds for
campaign report. The new committee shall disclose the true source of
the contribution with a notation that the contribution was earmarked to
Intermediary
If a contribution of $100 or more is received from a person who is
acting as an intermediary for the true source of the contribution,
disclose both the true source of the contribution and the intermediary.
Failure to report the true source of a contribution is a serious violation
of the Act.
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Contributions from Family Trusts
If a contribution is received from a family trust account, it is attributed
to the person who directed the contribution.
Aggregating Contributions
There are a variety of situations in which contributions from two or
more contributors must be aggregated for reporting purposes. For
example, when an individual who is the sole proprietor of a company
makes a contribution from company funds and another contribution
from personal funds, these contributions are added together for
reporting purposes. Additional information and several examples are
included in Chapter 3.
If contributions that must be aggregated are received from a major
donor (i.e., an individual or business entity that makes contributions
totaling $10,000 or more in a calendar year), the major donor must
notify each committee to which it makes a contribution of the name
461). When reporting the contribution received, the recipient of the
contribution must identify the name under which the major donor is
Contributor Information
If a committee receives a contribution of $100 or more, but does not
receive the required contributor information (name, address, and if the
contributor is an individual, his or her occupation and employer) within
60 days of receiving the contribution, the committee must return the
contribution to the contributor. Contributions may be deposited in the
pending receipt of the information, in which
case they must be reported on the next campaign statement (Form
from its closing date to disclose the missing contributor information,
unless the contribution was returned to the donor.
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See the chart below for examples of acceptable ways to report an
ion and employer.
Individual Donor Information
(Contributors of $100 or more)
Ex 8.3
Calendar Year Cumulation Exception
The cumulation period for a statement is generally January 1 through
December 31 of the current calendar year. However, there is an
in one calendar year in connection with an election held in the next
calendar year, such as elections held in January or early February.
In this case, the cumulation period begins on January 1 of the year
before the election and ends on the closing date of the semi-annual
Returned Contributions
Not Deposited:
A contribution need not be reported if it is not cashed,
negotiated, or deposited and is returned to the contributor before the
closing date of the campaign statement on which it would otherwise
be reported. A contribution of $1,000 or more received in the 90
days prior to the election, or on the date of the election, need not be
reported if it is not cashed, negotiated, or deposited and is returned to
the contributor within 24 hours of receipt.
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Deposited, Negotiated, or Returned After Closing Date:
A
contribution that is cashed, negotiated, or deposited, and is not
returned prior to the closing date of the campaign statement, must be
reported on Schedule A. If the contribution is returned within 30 days
of receipt, and within the reporting period, the return may be shown
contribution must be reported on Schedule E.
If the committee deposits a check
both the receipt and the return of the contribution may be reported
on Schedule A (the return will be reported as a negative amount) if
the committee returns the check to the contributor during the same
reported on Schedule E.
Transfers
If campaign funds are transferred from one of
local election committees to another, the transfer is reported by the
receiving committee on Schedule I, not on Schedule A.
Enforceable Promises
If a contribution is received in t
that has not been paid during the period, report the contribution as a
memo entry on Schedule A.
Disclose the date of the promise, all of the required information about
the contributor, and the amount promised, but do not include the
amount in the summary totals. When the contributor makes the actual
payment, fully disclose the contribution on Schedule A, if the payment
is made to the committee, or on Schedule C, if the contributor pays the
vendor directly, and include the amount in the appropriate summary
section.
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Installment Payments
Contributions may be received as installment payments made at
regular intervals over a period of time via credit card, debit card, wire
transfer, or similar electronic means. When a contributor authorizes a
series of installment payments, the contribution is reported as received
when the committee, or agent of the committee, obtains possession or
control of the funds for each installment payment.
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2
5
347
8
E. Completing the Form 460 Schedule A (Monetary
Contributions Received)
Schedule A is used to report monetary contributions received by
the committee, except for loans received, which are reported on
Schedule B. Payments received for repayments on loans made to
others are reported on Schedule H. Payments received that are
not contributions, loans, or repayments of loans made to others, are
reported as miscellaneous increases to cash on Schedule I.
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1
Date Received
Enter the date the committee obtained possession or control of the
contribution. For instance, in the case of a check, report the date the
check was received, which may differ from the date the check was
written and the date the check was deposited.
For contributions received by electronic transaction (such as credit
card, debit account, or wire transfer, including those received over the
Internet), report the date the committee received or had control of the
credit/debit account information or other payment information, or the
date the committee received or had control of the funds, whichever
is earlier. Chapter 2 provides several examples of different types of
contributions and when they
Ex 8.4
2
Contributor Information
Itemize persons that have contributed to the committee a cumulative
amount of $100 or more during the calendar year. Provide each
street address, city, state, and zip code. Many
local agencies require itemization at a lower threshold so check with
If the contributor is a recipient committee,
assigned or is unknown, report the full name, street address, city,
state, and zip code of that commit
If a contribution is received through an intermediary, provide the name,
street address, city, state, zip code, and, if applicable, occupation
and employer, of both the intermediary and the true source of the
contribution. (See Chapter 3.)
3
Contributor Code
For each itemized contributor, check the appropriate box to indicate
whether the contributor is an individual, a commit
a business entity), or a political party. (The c
contributor committees and is applicable only to state candidates and
committees.)
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Quick
4
Occupation and Employer Information
Tip
If the contributor is an individual, provide t
and the name of his or her employer. If the individual is self-employed,
provide the name of his or her business. Do not leave this column
blank. If the information has not yet been obtained, ente
or similar language and amend Schedule A when the information has
been received.
As explained in Chapter 2, a contribution of $100 or more must be
reet address, and if the contributor
is an individual, his or her occupation and employer are not in the
ys of receipt of the contribution.
5
Amount Received This Period
Report the amount of the contribution.
6
Cumulative to Date
Enter the cumulative amount of contributions (including monetary
contributions, nonmonetary contributions, loans, and loan guarantees)
received from the contributor. Contributions from a single source
are generally cumulated from January 1 through December 31 of the
current calendar year. However, there is an exception to calendar
statement in one calendar year in connection with an election held in
under Section D., General Rules for Reporting Contributions Received
on Schedule A.
The amount listed in the
committee has received other contributions, including nonmonetary
contributions, loans, or loan guarantees from the same source during
a contributor in a calendar year, all future contributions received from
that contributor in that calendar year, regardless of the amount, must
be itemized.
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7
Per Election to Date
is generally for state candidates
and committees that are subject to contribution limits. The Act does
however, local ordinances may include limits and other restrictions
and reporting requirements. Local candidates and committees should
local laws.
8
Schedule A Summary
Complete the Schedule A Summary section by entering the total
amount of itemized contributions ($100 or more) received this period
on Line 1 and the total amount of unitemized contributions (less than
$100) received this period on Line 2. Add Lines 1 and 2 and enter
that amount on Line 3. The amount on Line 3 is carried forward to the
overall Summary Page, Column A, Line 2.
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1
2adbcg
ef
3
F. Completing the Form 460
Received)
Schedule B is used to report activity on loans received by the
statement until they are paid off or forgiven. Schedule B has two
parts:
Quick
Tip
Part 1 lists loans received or outstanding, and the repayment,
forgiveness, or payment by a third party of a loan previously
received.
Part 2 lists information about loan guarantors, if any.
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1
Lender Information and Contributor Code
Provide the full name, street address, city, state, and zip code, of
each lender of $100 or more. For each itemized lender, check the
appropriate box to indicate whether the lender is an individual, a
ness entity), or a political party.
Quick
Tip
small contributor committees and is applicable
only to state candidates and committees.)
Financial Institution
the committee, or the committee has drawn on a line of credit from
candidate has established the line of credit.
2
Individual Lender
Quick
Tip
using personal funds to make a loan to his or her committee), provide
and the name of his or her employer. If the
individual is self-employed, provide the name of his or her business.
Do not leave this column blank. If this information has not yet been
e and amend Schedule
B, Part 1, when the information is received. (See Chapter 2 for
information about the requirement to return contributions/loans if the
Quick
Tip
name, address, occupation, or employer information is not received.)
Loan Amounts
a
Outstanding Balance Beginning This Period
Enter the outstanding loan balance at the beginning of this reporting
this period, enter zero.
b
Amount Received This Period
Enter the amount received from the lender during this reporting period.
If this loan was received in a previous reporting period, enter zero.
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c
Amount Paid or Forgiven This Period
Enter the amount of any reduction of the loan during this reporting
period. Check the appropriate box to indicate whether the reduction
was a payment or forgiveness. When the lender forgives all or part
of a loan, or a third party makes a payment on a loan, also report the
lender or third party on Schedule A as a contributor. Enter zero if no
payments were made during this reporting period.
d
Outstanding Balance at Close of This Period
Enter the outstanding balance of the loan at the close of this reporting
period. Enter the due date, if any.
e
Interest Paid This Period
Enter the interest rate and the amount of interest paid on the loan
during this reporting period. If the lender is not charging interest,
terest paid is reported
separately from payments made on the loan principal. Interest
payments are also transferred to the Schedule E Summary.
Quick
f
Original Amount of Loan
Tip
Enter the original amount of the loan and the date it was received. If
as reported in Column (b).
g
Cumulative Contributions to Date
Enter the cumulative amount of contributions (including loans, loan
guarantees, monetary and nonmonetary contributions) received from
the lender. Contributions from a single source are generally cumulated
from January 1 through December 31 of the current calendar year.
However, there is an exception to calendar year cumulation if the
year in connection with an election held in the next calendar year.
ion D., General
Rules for Reporting Contributions Received on Schedule A.
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is generally for state candidates
and committees that are subject to contribution limits. The Act does
however, local ordinances may include limits and other restrictions
and reporting requirements. Local candidates and committees should
local laws.
3
Schedule B Summary
Complete the Schedule B Summary by entering the total amount of
received
loans this period on Line 1 and the total amount of loans
paid or forgiven
on Line 2. Subtract Line 2 from Line 1 and enter the
difference (net change this period) on Line 3. The amount on Line 3
will be a negative amount when the loans paid or forgiven this period
are more than the amount of new loans received. The amount on Line
3 is carried forward to the overall Summary Page, Column A, Line 2.
Outstanding Loans Received (Summary
Loans received are carried forward on future statements until they are
paid off or forgiven. To determine the amount for Column B, Line 2
of the overall Summary Page, add the amount from Column A, Line
2 of this statement to the amount of Column B, Line 2 of the previous
statement. If the amount in Column A, Line 2 is a negative number,
subtract it from the amount in Column B, Line 7 of the previous
statement.
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G. Completing the Form 46
Guarantors)
1
Guarantor Information
If someone other than the controlling candidate co-signs, endorses, or
provides security for a loan of $100 or more, enter the full name, street
address, city, state, and zip code, of the guarantor.
Lines of Credit
If a third party establishes a line of credit of $100 or more for the
committee, enter treet address, city, state,
and zip code, as the guarantor.
2
Contributor Code
For each itemized guarantor, check the appropriate box to indicate
whether the guarantor is an individual, committee,
business entity), or a po
contributor committees and is applicable only to state candidates and
committees.)
3
Individual Loan Guarantor
If the guarantor is an individual, provide the
and the name of his or her employer. If the individual is self-employed,
provide the name of his or her business. Do not leave this column
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blank. If this information has not yet been obtained, en
or similar language and amend Schedule B, Part 2, when the
information is received.
4
Loan/Lender
Enter the name of the lender or the entity at which a line of credit was
established and the date of the loan or the date the line of credit was
established.
5
Amount Guaranteed This Period
Enter the amount guaranteed this period, if applicable. For lines of
credit, enter the full amount established or secured by the guarantor
drawn
during the period. (Report amounts on a line of credit on
6
Cumulative to Date
Enter the cumulative amount of contributions (including loans, loan
guarantees, monetary and nonmonetary contributions) received
Quick
Tip
from the guarantor. Contributions from a single source are generally
cumulated from January 1 through December 31 of the current
calendar year. However, there is an exception to calendar year
in one calendar year in connection with an election held in the next
ar Cumulation E
Section D., General Rules for Reporting Contributions Received on
Schedule A.
rmation is generally only required for state
candidates and committees that are subject to contribution limits.
The Act does not contain contribution limits for local candidates
other restrictions and reporting requirements. Local candidates and
obligations under local laws.
7
Balance Outstanding to Date
Report the outstanding balance for which the guarantor is liable at the
close of the reporting period.
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H. General Rules for Reporting Nonmonetary Contributions
Received on Schedule C
Schedule C is used to report nonmonetary contributions received by
Ex 8.5
the committee. Nonmonetary contributions are goods or services
provided to the committee for which it does not pay the fair market
value.
The fair market value is the amount the committee would pay for the
goods or services on the open market
member of the general public to obtain the same goods or services.
(See Chapter 3 for assistance in determining the fair market value of a
nonmonetary contribution.)
Examples of Nonmonetary Contributions
Poll results
Signs, postage, and printing
Food and entertainment provided for a fundraiser
Discounts or rebates that are not extended to the general public
Mailing lists, mailings, and other advertising
Forgiveness of an accrued expense by the creditor
Mail production, postage, printing, shipping, data and graphics
Phone banking and public communications
Media consulting services
Staff time and expenses
Banner ads
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Precinct walking and door hangers
Food for volunteers
Slate mailer/slate cards
Quick
Tip
Corporate stock
Compensation paid by an employer to an employee who spends
more than 10 percent of his or her compensated time in a
calendar month working on campaign activities for one or more
campaigns. Compensation includes gross wages paid and any
to a retirement or health plan.
See Chapter 3 for exceptions, such as volunteer personal services,
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8
9
I. Completing the Form 460 Schedule C (Nonmonetary
Contributions Received)
1
Date Received
Ex 8.6
A nonmonetary contribution is received on the earlier of the following:
The date that funds are expended by the contributor for the
The date that the candidate or committee obtains possession or
2
Contributor Information
Itemize persons who have contributed to the committee a cumulative
amount of $100 or more during the calendar year. Provide each
eet address, city, state, and zip code.
Remember to maintain the names and addresses of contributors of
$25 or more in your records. (See Chapter 2.)
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3
Contributor Code
For each itemized contributor, check the appropriate box to indicate
whether the contributor is an individual, committee,
business entity), or a po
contributor committees and is applicable only to state candidates and
committees.)
4
Occupation and Employer
If the contributor is an individual, provide t
and the name of his or her employer. If the individual is self-employed,
provide the name of his or her business. Do not leave this column
blank. If this information has not yet been obtained, en
or similar language and amend Schedule C when the information has
been received.
Quick
Tip
5
Description of Goods or Services
Provide a brief description of the goods or services received.
6
Amount/Fair Market Value
Report the value of the nonmonetary contribution received.
7
Cumulative to Date
Enter the cumulative amount of contributions (including loans, loan
guarantees, monetary and nonmonetary contributions) received from
the contributor. Contributions from a single source are generally
cumulated from January 1 through December 31 of the current
calendar year. However, there is an exception to calendar year
in one calendar year in connection with an election held in the next
ar Cumulation E
Section D., General Rules for Reporting Contributions Received on
Schedule A.
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Per Election to Date
is generally for state candidates
and committees that are subject to contribution limits. The Act does
however, local ordinances may include limits and other restrictions
and reporting requirements. Local candidates and committees should
local laws.
9
Schedule C Summary
Complete the Schedule C Summary section by entering the total
amount of itemized nonmonetary contributions ($100 or more)
received this period on Line 1 and the total amount of unitemized
nonmonetary contributions (less than $100) received this period on
Line 2. Add Lines 1 and 2 and enter the total on Line 3. The amount
on Line 3 is carried forward to the overall Summary Page, Column A,
Reminder:
Lines 4 and 10.
or more in a calendar year, all future contributions received from that
person, regardless of the amount, must be itemized.
Answering Your Nonmonetary Contributions Questions
A. What is the value of the time provided by a graphic artist
who volunteers to design a logo for my committee?
not reportable if it constitutes volunteer
personal services. But, if the artist is an employee of a
business and spends more than 10 percent of his or her
compensated time in a calendar month working on the design,
the paid compensation becomes a nonmonetary contribution
B. How do I determine the fair market value of a mailing list
provided by another committee?
The most common way for a committee to determine the value
is to contact a business from which a similar mailing list may be
obtained.
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J. General Rules for Reporting Expenditures Supporting/
Opposing Other Candidates, Measures, and Committees
on Schedule D
Schedule D provides a summary of payments reported on Schedules
E, F, and H that are contributions or independent expenditures to
support or oppose other candidates, measures, and committees.
Such payments include:
Monetary contributions or loans to other candidates and
committees.
Payments to vendors for goods or services for other candidates
and committees (nonmonetary contributions).
Donations to other candidates and committees of goods on
hand, or the payment of salary or expenses for a campaign
employee who spends more than 10 percent of his or her
compensated time in a calendar month on campaign activities
for other candidates or committees (nonmonetary contributions).
Payments for communications (e.g., mailings, billboards, radio
ads) that expressly advocates support of or opposition to a
are not made to, or at the behest of, the candidate or ballot
measure committee (independent expenditures).
Candidate Controlled Committees
Payments made to support the controlling candidat
opponent(s), are not reported on
Schedule D. These payments are direct campaign expenditures and
are reported only on Schedule E.
personal
funds to make contributions of $10,000 or more, or independent
other
expenditures of $1,000 or more, to support or oppose
Donor and Independent Expenditure Committee Campaign Statement
(Form 461). These payments are not reported on Schedule D.
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Primarily Formed Committees
Payments made for communications that support or oppose the
candidate for which the committee is primarily formed are required
to be reported on Schedule D as either contributions or independent
expenditures, depending on whether the payments were made at
the behest of the candidate. These payments are also reported on
Schedule E or F.
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K. Completing the Form 460 Schedule D (Summary of
Expenditures Supporting/Opposing Other Candidates,
Measures and Committees)
1
Date
Report the date the contribution or independent expenditure was
made. A monetary contribution is made on the date it is mailed,
committee.
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nonmonetary contribution
A is made on the earlier of the following:
Ex 8.7
The date the committee or an agent of the committee obtained
expenditure.
A payment made in connection with the development, production,
independent
or dissemination of a communication that is an
expenditure
must be reported no later than the date the
communication is mailed, broadcast, or otherwise disseminated to the
public.
A payment for a communication that is never disseminated to the
Quick
public is not considered an independent expenditure and need not be
Tip
reported on Schedule D. The payment must be reported on Schedule
E as an expenditure.
2
Committee
If a total of $100 or more is contributed or expended during a calendar
year to support or oppose a single candidate, ballot measure, or a
general purpose committee (e.g., a political party), disclose the name
and jurisdiction of the ballot measure, or the name of the general
Ex 8.8
purpose committee. For each candidate or measure listed, indicate
whether the payment was made to support or oppose the candidate or
measure.
3
Type of Payment
Check the appropriate box to indicate whether the payment was a
monetary contribution, nonmonetary contribution, or independent
expenditure.
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Description of Nonmonetary Contribution Where No Payment
is Made
Because payments must be described when they are reported
on Schedule E or F, a description is not required on Schedule D
for payments reported on Schedule E or F that are nonmonetary
contributions or independent expenditures. However, if no payment
was made, describe the goods or services. For example, if goods
committee, a description must be included.
5
Amount This Period
Provide the amount(s) of contributions or independent expenditures
made this period relative to each candidate, measure, or committee.
6
Cumulative to Date Calendar Year
Report the cumulative amount contributed to or expended to support
or oppose each itemized candidate, ballot measure, or committee
since January 1 of the current calendar year.
If contributions are made to more than one election committee
controlled by the same candidate, report the total amount contributed
to all of the committees. Do not cumulate contributions made to
th contributions made to other
committees controlled by the candidate, such as a ballot measure
committee or a legal defense fund committee. Contributions and
independent expenditures are cumulative separately.
7
Per Election to Date
If contributions of $100 or more were made to state candidates during
a state election cycle, the cumulative amount contributed during the
election cycle is reported in this column.
In addition, a local ordinance may require committees in that
jurisdiction to report the cumulative amount contributed to a local
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8
Schedule D Summary
Complete the Schedule D Summary by entering the total amount of
itemized contributions and independent expenditures of $100 or more
(Line 1), the total amount of unitemized contributions and independent
expenditures of less than $100 (Line 2), and the total amount for both
not
(Line 3). Totals from the Schedule D Summary are carried forward
to the overall Summary Page.
Answering Your Major Donor Questions
A.
Independent Expenditure Committee Campaign Statement)
if he or she makes personal contributions to his or her
controlled election campaign committee of $10,000 or
more?
to his or her own election
committee by making personal contributions of $10,000 or more
to other candidates or committees, the Form 461 must also
include personal contributions made to his or her own controlled
committees.
B.
campaign of $10,000 or more?
If the contributions are made from community funds, neither
the spouse nor the candidate will qualify as a major donor.
kes contributions from legally
separate funds, the spouse will become a major donor and
C.
personal contributions to his or her controlled ballot
measure committee of $10,000 or more?
Yes.
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D. Using personal funds, a candidate made contributions
totaling $9,000 to other candidates and committees. She
also contributed $3,000 to her own election committee.
Since the total amount of all contributions made is $12,000,
No. Contributions to a candidat
not counted toward the $10,000 major donor threshold.
L. General Rules for Reporting Payments Made on Schedule
E and Accrued Expenses (Unpaid Bills) on Schedule F
Schedule E is used to report money spent by the committee during the
reporting period, except for payments made on loans received by the
committee or payments made in the form of loans to other candidates
or committees. Use Schedule B (Part 1) to report repayments on
loans receivedloans
by the committee. Use Schedule H to report
Quick
Tip
made
to other candidates and committees.
on the date the payment is made or the date
the committee receives the goods or services, whichever is earlier.
Use Schedule F to report amounts owed by the committee for goods
or services received but not paid for by the end of the reporting period.
Ex 8.9
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ve overhead expenses, such as
rent, utilities, phones, or employee salaries, need not be reported
Ex 8.10
on Schedule F if the committee has not received a bill in the normal
course of business or if the due date for the payment is after the
closing date of the statement. Regular administrative overhead does
not include contracts for services such as accounting, legal services,
campaign consulting, and public relations.
Information Required
Itemize each payment or accrued expense of $100 or more to a single
payee, and any payments totaling $100 or more for a single product or
service made during the period.
If the committee has entered into an agreement to make payments
over time for a product or service, other than general administrative
expenses such as rent and utilities, the unpaid balance may be
reportable on Schedule F as an accrued expense.
Payments for Online Communications
Additional expenditure reporting is required when a committee pays a
person to provide favorable or unfavorable content about a candidate
or ballot measure on an Internet site other than
the committee paid to provide favorable or unfavorable content on a
candidate or ballot measure by:
Providing such content for or posting on a website or blog,
Providing such content for or posting on a social media platform.
Providing such video content for posting online.
Content means that which is offered on a website or other digital
platform in writing, picture, video, photograph or other similar format.
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Payments made to an individual, either directly or through a third
party, must be reported on Schedule E or F using
addition, the following information must be included: the amount of the
payment, the payee, the name of the individual providing content, and
the name of the website or the URL on which the communication is
where the content is shared or passed on to after the initial post. The
additional reporting is not required if the fact that the campaign paid for
the content is posted in a clearly conspicuous manner with the posted
content. (See Regulation 18421.5 for additional information.)
Do not report on Schedule E the transfer of campaign funds into a
purchase of any other asset that can be readily converted to cash.
Report these amounts as cash on hand on the Summary Page, Line
16.
Transfers
If a candidate controlled committee transfers funds to another
committee controlled by the candidate, the transfer is reported
on Schedule E. The receiving committee reports the transfer on
Schedule I (Miscellaneous Increases to Cash). There are restrictions
on transfers of surplus funds (see Chapter 5) and on transfers of funds
Candidates.)
Contributions and Independent Expenditures
If the committee makes contributions and/or independent expenditures
addition to reporting the payments or accrued expenses on Schedule
E or F, they must also be reported on Schedule D. For payments
made for goods or services that are nonmonetary contributions or
independent expenditures, also identify the candidate, committee,
or ballot measure supported or opposed by the expenditure in the
column on Schedule E or F.
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When a primarily formed committee makes a payment for a
communication that expressly advocates support for or opposition
to the candidate for whom the committee is formed, the payment is
reported as a contribution or independent expenditure. As discussed
in Chapter 6, the determination is based on whether the payment was
made at the behest of the candidate. If the payment is an independent
Expenditures (Form 462) and the 24-hour Independent Expenditure
Report (Form 496), may be required. (See Chapter 10 for additional
information.)
If a primarily formed committee makes payments for contributions or
other
independent expenditures to support or oppose candidates,
different type of committee (i.e., a general purpose committee), which
has different reporting obligations. Contact the FPPC for assistance.
Subvendor Payments (often reported on Schedule G)
When an agent or independent contractor (such as a campaign
or incurs a debt, of $500 or more on behalf of the committee, the
expenditure must be reported in the same detail as if it had been made
directly by the committee. These are commonly know
also obtain and keep receipts,
invoices, and other documentation for subvendor payments. (See
Chapter 2.)
Examples of subvendor payments that must be itemized include:
Travel expenses, such as a commercial airline or hotel paid
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Quick
Tip
Design or management of campaign literature or advertising.
Generally, agents and independent contractors must provide the
Ex 8.11
three
committee with the required payment information no later than
working days
however, an expenditure of $1,000 or more made for a contribution or
independent expenditure in the 90 days before an election, including
within 24
the date of the election, must be reported to the committee
hours
. Expenditures made by the agent or independent contractor for
its own overhead and operating expenses need not be itemized.
In many cases, funds paid to an agent or independent contractor in
one reporting period will not be used by the agent or contractor until
a subsequent reporting period. Payments to an agent or contractor
are reported on Schedule E of the campaign statement covering the
period in which the payments are made. When the agent or contractor
spends the money, subvendor payments are reported on the campaign
statement covering the period in which the expenditures are made.
Payments of $500 or more must be itemized.
Subvendor payments are most commonly reported on Schedule G, but
may be reported on Schedule E or F along with the payment made or
owed to the agent or contractor. When itemizing subvendor payments
on Schedule E or F, do not include the payments
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Credit Card Payments
Ex 8.12
When reporting payments to a credit card company, provide the name,
street address, city, state, zip code, and the amount of payment. In
addition, provide the name, street address, city, state, and zip code
of any vendor that received $100 or more, the amount paid to each
itemized vendor, and a code or description of the payment.
If a payment has not been made on the credit card by the end of
the reporting period, or only partial payment has been made, report
the amount outstanding to the credit card company on Schedule F.
E when payments are made and Schedule F when there is a balance
to be listed more than one time, on either Schedule E or Schedule F.
Schedule G may also be used to disclose vendors.
Contingency Payments
If the committee has entered into an agreement to pay a contingency
fee, such as a bonus to a consultant if the campaign is successful,
report the fee amount on Schedule F only if it is outstanding at the end
of the campaign. The fee is not required to be reported as an accrued
expense until it is due.
Candidates may not use their personal funds for campaign expenses
and the $50 Secretary
of State fee
account.
Employees, Agents and
Contractors
or independent contractors (e.g., a consultant or an advertising agent),
may be reimbursed for goods, services, or travel expenses when the
following criteria are met:
The treasurer is provided with a dated receipt and a written
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The reimbursement is paid within 45 calendar days after the
There is a written contract between the committee and the agent
or independent contractor providing for the reimbursement of
contract.)
If the reimbursement does not occur within 45 calendar days, the
expenditure is considered a nonmonetary contribution from the
volunteer, paid employee, agent or independent contractor, unless the
person seeking reimbursement has made a good faith effort to obtain
reimbursement and is unable to collect from the committee.
ovided with a dated receipt and a
Reimbursement occurs:
For a monetary expenditure: Within 90 calendar days after the
For a credit card or charge account: Within 90 calendar days
of the end of the billing period.
If the reimbursement does not occur within the 90-day period, the
amount must be reported as a nonmonetary contribution from the
committee campaign bank account established for election to the
conditions above are met. When reporting reimbursements to the
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Expenditures Made for Gifts, Meals, and Travel Payments
A candidate controlled committee that makes an expenditure of $100
or more for a gift, meal, or travel must further explain the expenditure
described below. The
explanation must be provided even if an expenditure code is used.
Ex 8.13
Gifts:
When reporting an itemized expenditure for a gift, the
governmental purpose of the expenditure. In addition, the committee
must provide the date of the gift and a description of the gift. If the gift
was made to an individual recipient, the name of the recipient must be
included. If a gift was made to a group of recipients, the name of each
recipient of a gift with a value of $50 or more is not known at the time
the payment is required to be reported, the committee must report
been given to the recipient, the campaign statement must be amended
within 45 calendar days to disclose the name of the recipient.
Meals:
When reporting an itemized expenditure for a meal (other than
Ex 8.14
a meal reported as an itemized expenditure for travel, as discussed
governmental purpose of the expenditure. In addition, the committee
must provide the date of the meal, the number of individuals who were
present at the meal, and whether the candidate, a member of his or
her household, or an individual with authority to approve expenditures
of campaign funds was present at the meal. It is not necessary to
include the names of individual attendees on the report. However,
the names of the attendees must be maintain
records. (See Chapter 2.)
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Travel Payments:
When reporting an itemized expenditure for travel,
Ex 8.15
political, legislative, or governmental purpose of the expenditure. In
addition, the committee must also provide the date or dates of the
travel, the destination, and the goods or services purchased. The
description must also include the number of individuals for whom the
payment was made and whether the trip included the candidate, a
member of his or her household, or an individual with the authority to
approve expenditures of campaign funds. The names of individuals
who traveled are not required to be disclosed on the report. However,
the names of the travelers must be maintained in
records. (See Chapter 2.)
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M. Completing the Form 460 Schedule E (Payments Made)
Quick
1
Name and Address of Payee
Tip
Itemize each payment of $100 or more made to a single payee during
the reporting period, and any payments totaling $100 or more made
during the period for a single product of service. Include the name,
street address, city, state, and zip code of the payee. Do not use
creditor.
2
Code or Description of Payment
When itemizing payments, provide either a code or a description of
the payment. Expenditure codes are explained in detail in the Form
Quick
460, Schedule E instructions. If none of the codes listed on Schedule
Tip
E fully explains the expenditure, leave the code column blank and
provide a brief description of the goods or services purchased.
If several expenditures are made to one vendor during the same
reporting period, all of the payments to the vendor may be reported
in a single record. When coding the expenditures, use the code that
represents the largest share of the expenditures, and the description
expenditure may be reported separately by category.
For expenditures that are nonmonetary contributions or independent
expenditures, provide the applicabl
disclose the name of the candidate or committee that received the
contribution, or the name of the candidate or ballot measure supported
or opposed by the independent expenditure. Also include a brief
description of the contribution or independent expenditure. These
expenditures must also be disclosed on Schedule D.
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3
Amount Paid
Enter the total amount paid to the payee during the reporting period.
Payment of Accrued Expenses
When paying for accrued expenses previously reported on Schedule
F, report all payments on Schedule E, itemizing each payment of $100
or more. Subvendor information does not need to be reitemized if it
was disclosed on Schedule F of a previous statement.
4
Schedule E Summary
Complete the Schedule E Summary by entering the total amount of
itemized payments of $100 or more (Line 1) and the total amount of
unitemized payments of less than $100 (Line 2). If the committee
is paying interest on loans, enter the amount from Schedule B, Part
1, Column (e) on Line 3. The total amount of all payments made is
entered on Line 4. The amount on Line 4 is carried forward to the
overall Summary Page, Column A, Line 6.
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4
N. Completing the Form 460
(Unpaid Bills)
1
Name and Address of Creditor
Itemize each accrued expense of $100 or more owed to a single
creditor. Provide the name, street address, city, state, and zip code of
unpaid bill until it is paid off.
2
Code or Description of Payment
When itemizing accrued expenses, provide either a code or a
description of the outstanding payment. Expenditure codes are
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explained in detail in the Form 460, Schedule E instructions. If none of
the codes listed on Schedule F fully explains the outstanding payment,
leave the code column blank and provide a brief description of the
goods or services.
If several accrued expenses are owed to one vendor during the same
reporting period, all of the accrued expenses to the vendor may be
reported in a single record. The code that represents the largest share
be used for other codes or descriptions. Alternatively, each accrued
expense may be reported separately by category.
For accrued expenses in connection with nonmonetary contributions
or independent expenditures, provide the applicable code
name of the candidate or committee
that received the contribution, or the name of the candidate or ballot
measure supported or opposed by the independent expenditure.
Also include a brief description of the contribution or independent
These expenditures also must be disclosed on
expenditure.
Schedule D.
3
Amount Columns
For each itemized accrued expense, report any outstanding balance
remaining for the accrued expense from the previous period in
column (a), the amount of new accrued expenses incurred this period
in column (b), the amount paid this period in column (c), and any
outstanding balance at the close of the period in column (d).
When payments on accrued expenses are made, in addition to
itemize the
itemizing payments of $100 or more on Schedule F,
payments on Schedule E.
Include unitemized payments on accrued
expenses on Line 2 of the summary section of Schedule E.
Estimating Accrued Expenses
If the exact amount of a debt or obligation is unknown, an estimate
may be reported. When the committee is made aware of the exact
amount, the committee must 1) amend the statement on which the
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campaign statement by showing the difference between the estimated
Ex 8.16
amount and the actual
ual amount is less than the estimate, the amount
listed in column (b) should be a negative number and subtracted
from the totals. When reporting estimated amounts or corrections to
estimated amounts, note that fact on the campaign statement.
Forgiven Accrued Expenses or Third Party Payments
If a creditor reduces or forgives a debt previously reported on
Schedule F, or if another person pays a debt for the committee:
Indicate that the debt was forgiven, reduced, or paid by a
the creditor or payor and the
amount as a nonmonetary contribution on Schedule C.
Report the amount forgiven, reduced, or paid by a third party in
lumn and indicate that it was
or
a forgiveness or third party payment report the amount as a
negative number in the
Do not report the amount on Schedule E.
business judgment that all or part of the debt is uncollectible, the
creditor may not be making a contribution. Contact the FPPC for
assistance.
4
Schedule F Summary
Complete the Schedule F Summary by entering the total amount of
incurred
accrued expenses on Line 1 and the total amount of accrued
paid
expenses on Line 2. Subtract Line 2 from Line 1 and enter the
difference (net change this period) on Line 3. The amount on Line 3
will be a negative amount when the accrued expenses paid are more
than the amount of new accrued expenses. The amount on Line 3 is
carried forward to the overall Summary Page, Column A, Line 9.
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9)
Outstanding Accrued Expenses (Summary Page, Column B, Line
Accrued expenses are carried forward on future statements until they
are paid off. To determine the amount for Column B, Line 9 of the
overall Summary Page, add the amount from Column A, Line 9 of the
current statement to the amount of Column B, Line 9 of the previous
statement. If the amount in Column A, Line 9 is a negative number,
subtract it from the amount in Column B, Line 9 of the previous
statement.
Answering Your Accrued Expenses Questions
A. When are unpaid bills reportable as accrued expenses?
The basic rule is that you must report an accrued expense any
time you have received goods or services but have not paid for
them by the end of the reporting period.
B. What if our committee has not yet received an invoice from
the vendor?
If you have received the goods or services, you must report the
accrued expense on Schedule F even if you have not received
an invoice. If you do not know the actual amount, you may
actual amount, the committee must either amend the statement
on which the estimated amount was reported or make an
adjustment on the next campaign statement by showing the
difference between the estimated amount and the actual
amount. When reporting estimated amounts or corrections to
estimated amounts, note that fact on Schedule F.
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C. We have a contract to pay our campaign consultant $1,000
per month. If the closing date of the campaign statement
falls during the middle of the month, for example March 17,
must we report an accrued expense for the period of March
1 through March 17?
No. When you have agreed in writing to pay a contractor a set
amount at regular intervals, it is not necessary to prorate the
amount owed to the contractor if the reporting period closes
before the end of the contract period. The payment will be
reported on the campaign statement for the period in which the
payment is made.
D. When an accrued expense is owed and there are
subvendor payments, when are the subvendors reported?
For example, if we report an accrued expense owed on a
credit card and list the subvendors, must we reitemize the
subvendors again on Schedules E and F when the accrued
expense is paid?
No. It is not necessary to reitemize subvendors when payments
are made on accrued expenses, or if an accrued expense is
reported on more than one statement. In this example, the
subsequent statements, only the credit card company must be
itemized.
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E. Prior to attending an FPPC webinar and learning that it was
not permitted, I used personal funds to pay for some of
my campaign expenses before I opened a campaign bank
account. How do I report these expenditures on the Form
460?
So that the activity is properly disclosed, you should report
the amount of personal funds used on Schedule A as a
contribution and Schedule E as an expenditure (itemizing
subvendors of $100 or more). If you wish to be reimbursed by
the committee, you may report the amount on Schedule F as
an accrued expense. If you have already been reimbursed by
the committee, you will report the amount on Schedule E as
an expenditure itemizing subvendors of $100 or more. Non-
disclosure of the payments is a violation of the Act. All future
personal funds must be deposited into the account before
making expenditures.
O. General Rules for Reporting Payments Made by an Agent
or Independent Contractor on Schedule G
Schedule G is used to report payments made by agents (such as
campaign workers) and independent contractors (such as consulting
schedule may be used in lieu of itemizing these amounts on Schedule
E or F. See the general rules for Schedules E and F for additional
information.
Schedule G may be completed by the committee from information
provided by the agent or independent contractor or it may be
completed by the agent or independent contractor. Agents and
independent contractors must provide the committee with the required
no later than three working days prior to the
payment information
of the campaign statement. If an agent or independent
contractor makes an expenditure of $1,000 or more for a contribution
or independent expenditure in the 90 days before an election,
including the date of the election, they must provide the committee
within 24 hours.
with the required payment information
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P. Completing Form 460 Schedule G (Payments Made by an
Agent or Independent Contractor)
1
Name and Address of Payee or Creditor
Itemize each payment of $500 or more made by the agent or
independent contractor. Provide the name, street address, city, state,
number.
2
Code or Description of Payment
When itemizing each payment, provide either a code or a description
of the payment. If none of the codes listed on Schedule G fully
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explains the payment, leave the code column blank and provide a
brief description of the payment. Payments that are contributions or
independent expenditures must also be reported on Schedule D.
3
Amount Paid
Enter the total amount paid to the payee during the reporting period.
Schedule G totals are not transferred to any other schedule or to
the Summary Page.
Q. General Rules for Reporting Loans Made to Others on
Schedule H
Quick
Tip
made
Schedule H is for reporting loans by the committee. Campaign
committee treasurer, or any individual with authority to approve the
expenditure of campaign f
member. The loan must be reasonably related to a political, legislative,
or governmental purpose.
Because a loan is considered a contribution, loans to other candidates
Quick
Tip
and committees are subject to applicable state or local contribution
limits. Loans to other candidates and committees must also be
reported on Schedule D.
are paid.
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1
f
2
R. Completing the Form 460 Schedule H (Loans Made to
Others)
1
Recipient Information
For each loan of $100 or more that was made or outstanding during
the reporting period, provide the rename and street
address, including the zip code. If the recipient is an individual,
s occupation and the name of his or her
employer. If the individual is self-employed, provide the name of his or
her business.
Loan Amounts
a
Outstanding Balance Beginning This Period
Enter the outstanding loan balance at the beginning of this reporting
this period, Column (a) should be left blank.
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b
Amount Loaned This Period
Enter the amount loaned to the recipient during this reporting period.
If the loan was made in a previous reporting period, Column (b) should
be left blank.
c
Repayment or Forgiveness This Period
Enter the amount of any reduction of the loan during this reporting
period. Indicate whether the loan was paid or forgiven. If the
committee forgives a loan, also report the transaction on Schedule E
and, if the recipient of the loan is a candidate or committee, report the
forgiveness as a contribution on Schedule D.
d
Outstanding Balance at Close of This Period
Enter the outstanding balance of the loan at the close of this reporting
period. Enter the due date, if any.
e
Interest Received
Enter the interest rate and amount of interest received on the loan
during this reporting period. Interest received is reported separately
from payments received on the loan principal. Interest received is also
transferred to the Schedule I Summary.
f
Original Amount of Loan
Enter the original amount of the loan and the date it was made. If this
as reported in Column (b).
g
Cumulative Loans to Date
For each loan that is a contribution, enter the cumulative amount
of contributions (including loans, loan guarantees, monetary
and nonmonetary contributions) made to the recipient during the
calendar year covered by the statement. If the recipient is subject
to state contribution limits, also enter the total amount contributed in
connection with each election and identify the election year. Because
loans are contributions, the total amount of contributions made to a
uding loans, may not exceed the
applicable limit. (Loans to candidates or other committees must also
be reported on Schedule D.)
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2
Schedule H Summary
Complete the Schedule H Summary by entering the total amount of
madereceived
loans on Line 1 and the total amount of loan payments
on Line 2. Subtract Line 2 from Line 1 and enter the difference
(net change this period) on Line 3. The amount on Line 3 will be a
negative amount when the loan payments received this period are
more than the amount of new loans made. The amount on Line 3 is
carried forward to the overall Summary Page, Column A, Line 7.
Outstanding Loans MadeColumn B, Line 7)
Loans made are carried forward on future statements until they
are paid off. To determine the amount for Column B, Line 7 of the
overall Summary Page, add the amount from Column A, Line 7 of
this statement to the amount of Column B, Line 7 of the previous
statement. If the amount in Column A, Line 7 is a negative number,
subtract it from the amount in Column B, Line 7 of the previous
statement.
S. General Rules for Reporting Miscellaneous Increases to
Cash on Schedule I
Schedule I is used to report increas
that are not monetary contributions, loans, or repayments of loans
made to others. Examples include:
Proceeds, up to the fair market value, of items sold at a garage
sale or auction.
Contributions returned to the committee.
Refunds received on deposits, such as a telephone or room
rental deposit or from over-payment of bills.
Interest received or credited to a checking or savings account or
other time deposit.
Interest payments received on loans made to others.
Receipts from the sale of committee assets.
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Transfers of funds received by a controlled committee from
another committee controlled by the same candidate. There
are special rules for transferring funds to a committee for state
Ex 8.17
Receipt of earmarked funds when acting as an intermediary.
(See Chapter 8.)
Donated Items
When reporting sources who have purchased donated items (e.g.,
items sold at an auction), report the amount received, up to the fair
market value, on Schedule I. Any amount in excess of the fair market
value is reported as a contribution on Schedule A.
Uncashed Checks
If the committee writes a check that is never deposited or negotiated,
report the amount of the uncashed check on Schedule I.
Decreases to Cash
All decreases to cash must be reported as expenditures on Schedule
E or H.
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2
34
5
T. Completing the Form 460 Schedule I (Miscellaneous
Increases to Cash)
1
Date Received
Report the date the committee received the miscellaneous receipt.
2
Source Information
Itemize sources of $100 or more. Provide the full name, street
numbers are not acceptable.
3
Description of Receipt
Provide a description of the receipt (e.g., refund on room deposit for
fundraiser, interest earned on loans made to others).
4
Amount of Increase
Enter the amount of the receipt.
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5
Schedule I Summary
Complete the Schedule I Summary by entering the total amount of
itemized increases to cash of $100 or more on Line 1 and the total
amount of unitemized increases to cash on Line 2. Enter the total
of all interest received this period on loans made to others (from
Schedule H, Column (e)) on Line 3. Add Lines 1,2, and 3 to determine
the total miscellaneous increases to cash this period and enter the
amount on Line 4. The amount on Line 4 is carried forward to the
overall Summary Page, Line 14.
U. Amending the Form 460
460, complete a new Cover Page and check
of statement being amended (e.g., semi-annual, preelection) and
enter the period covered by the statement being amended. Provide
a brief explanation of the reason for the amendment and attach
the schedule(s) being amended, including the Summary Page, if
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Authority
The following Government Code sections and Title 2 regulations
provide authority for the information in this chapter:
Government Code Sections
81004
81004.5
82013Committee.
82015Contribution.
82018Cumulative Amount.
82025Expenditure.
82025.5
82044Payment.
84105
84203
84211Contents of Campaign Statement.
84212
84213
84216Loans.
84216.5Loans Made by a Candidate or Committee.
84302Contributions by Intermediary or Agent.
84303Expenditures by Agent or Independent Contractor.
84306Contributions Received by Agents of Candidates and
Committees.
84615Campaign Reports ectronic Filing for
Local Agencies.
85201Campaign Bank Account.
85700
89511.5
89515Use of Campaign Funds for Donations and Loans.
Title 2 Regulations
18215Contribution.
18215.1
18216Enforceable Promise to Make a Payment.
18401Required Recordkeeping for Chapters 4 & 5.
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18421Cash Equivalents.
18421.1Disclosure of the Making and Receipt of Contributions.
18421.2Street Address.
18421.3Reporting of Contributions and Expenditures Collected by
18421.5
Communications.
18421.6Reporting Accrued Expenses.
18421.7Reporting an Expenditure for a Gift, a Meal or Travel.
18421.9Reporting Expenditures Charged to a Credit, Debit or
Charge Card by a Candidate or Committee.
18423Payments for Personal Services as Contributions and
Expenditures.
18427Duties of Treasurers and Candidates with Respect to
Campaign Statements.
18427.1
18428Reporting of Contributions and Independent Expenditures
Required to be Aggregated.
18431Reporting of Expenditures by an Agent or Independent
Contractor.
18432.5Intermediary and Earmarked Funds Disclosure.
18526Reimbursement of Expenditures.
18533Contributions from Joint Checking Accounts.
18570
Information.
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9
CHAPTER
W W F
HENANDHERETOILETHE
F 460
ORM
Committee Campaign Statement (Form 460). The Form 460 is the
comprehensive report that discloses all receipts and expenditures of a
committee. The Form 460 includes payments previously reported on
forms such as the 24-Hour Contribution Report (Form 497). All reports
(Act) are public
records available for public inspection.
Short Form (Form 470). Review Chapter 1 for information about the
Primarily formed committees that have minimal activity in a reporting
period may be eligible to use the Recipient Committee Campaign
the Semi-Annual Statement of
at the same time and locations as the Form 460.
A. General Information
Filing Schedules:
Quick
Tip
e.g., June and November elections). In
schedules. Local candidates and committees should contact their
addition to what is required by the Act.
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Deadlines:
hand-delivered or postmarked by the due date. Deadlines that fall on
the 24-hour
Independent Expenditure Reports (Form 496) or to the 24-hour
Contribution Reports (Form 497) required the weekend before an
election. For example, if a committee receives a $1,000 contribution
on the Saturday before the election, the deadline is not extended to
hours. There are no other provisions for extending a deadline.
Late Fines:
Ex 9.1
Failure to File:
statement. Administrative penalties of up to $5,000 per violation may
be assessed. (See Government Code Section 83116.) Committees
website.
B. When to File
Semi-Annual Statements
Ex 9.2
whether or not they receive contributions or make expenditures during
the six-month period. An existing committee or a committee newly
statement due on or before July 31 for the period covering January 1
through June 30.
January 31 of the following year for the period covering July 1 through
December 31. The period covered for a committee newly formed
during the last six months of the year will be January 1 through
December 31.
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Candidates
six-month period in which they have not received any contributions or
made any expenditures.
To determine whether $200 has been received, only the elected
agency are not counted.
Non-incumbent judicial candidates that will not be listed on a ballot and
incumbent judges that will not be listed on a ballot who do not receive
any contributions or make any expenditures in a six-month period are
Quick
Tip
Preelection Statements
In addition to semi-annual statements, candidate controlled
statements before the election in which the candidate is listed on the
delivery or guaranteed overnight delivery.
Exception: Candidates Not on a Ballot
A candidate who will not appear on the ballot because he or she is
addition, a candidate who withdraws from an election and will not be
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Quarterly Reports
Ex 9.3
quarterly basis until the semi-annual period in which the recall election
Period CoveredFiling Deadline
January 1 - March 31April 30
April 1 - June 30July 31
July 1 - September 30
January 31
During the semi-annual period in which the recall election is held, the
Amendments
Except for amendments required to provide missing contributor
amendments to campaign statements. However, amendments should
Faxing and Emailing Statements
Campaign statements that contain 30 pages or less may be faxed
provided that the transmitted copy of the campaign statement is
the exact copy of the original version. The original statement (with
deadline.
C. Where to File
Candidates, candidate controlled committees, and primarily formed
candidate. The following chart summarizes the locations where
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another location (see Chapter 10.) Anmpaign statement
and/or the treasurer or assistant treasurer.
Where to FileWhat to File
Primarily Formed Committee
City Clerk
County with the largest number
Local agencies with jurisdiction of registered voters in the
in more than one countyjurisdiction
County of Domicile, if different
Judges and Judicial Electronic Filers
Candidates
Secretary of StateElectronically and one paper
original
Non-Electronic Filers
Secretary of State
County of Domicile
Electronic Filing
Judges and judicial candidates (including Superior Court judges
electronically with the Secretary of State. The Act does not require
with their
local jurisdictions. Some local agencies may require that campaign
those jurisdictions, paper copies may not be required, but most
committees must submit a paper c
Multiple Controlled Committees in Same Jurisdiction
committee and have one bank account per election
one bank account rule. (See Chapter 1.) However, if a candidate
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account, legal defense fund, or ballot measure committee), each of
or her election. (See FPPC Regulation 18405.) This provides the
voters with a complete summary of the contributions received and
expenditures made by the candidate.
Note:
the ballot measure committee schedule if he or she is not also being
voted on in the election.
Multiple Controlled Committees in Different Jurisdictions
When an individual is simultaneously a candidate for elective state
committees he or she controls with both jurisdictions on the dates the
Secretary of State each time the Form 460 is due for either committee.
Ex 9.4
Mayoral Committee
School Board Committee
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position for which the candidate does not have a committee, a Form
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Answering Your Questions
A. I am currently a city council member without a campaign
committee. I intend to run for the board of supervisors in
the November election and will open a committee in July
statement for the period January 1 through June 30 on or
before July 31. Since you do not have an open city council
with the city clerk.
B.
the semi-annual statement due on July 31, I paid off my
remaining bills and terminated my committee in August
engage in any further campaign activities. Am I required to
as a semi-annual statement?
as a terminating statement and a semi-annual statement,
covering the period through December 31. However, if
you subsequently receive any contributions or make any
statement no later than January 31 of the following year. If
you receive $200 or more in a calendar month for your elected
every year, even though you have terminated your committee.
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Authority
The following Government Code sections and Title 2 regulations
provide authority for the information in this chapter:
Government Code Sections
81004.5
81007Mailing of Report or Statement.
81007.5Faxing of Report or Statement.
81008
Charges.
82027
83116
84200Semi-Annual Statements.
84200.5Preelection Statements.
84200.8Time for Filing Preelection Statements for Elections Not
Held in June or November of an Even-Numbered Year.
84206Candidates Who Receive or Spend Less Than $2,000.
84215
84605
84615Electronic Filing for Local Agencies.
91013
Title 2 Regulations
18110
18116s.
18405Candidates with Multiple Controlled Committees.
18406
and Spend Less than $2,000 in a Calendar Year.
18426Semi-Annual Statement Early Filing.
18531.5Recall Elections.
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10
CHAPTER
AR
DDITIONALEPORTS
In addition to the forms associated with starting a campaign (Forms
501 and 410) and the main campaign disclosure form (Form 460),
there are several other forms that may be required, depending on
24-hour Contribution Report (Form 497).
Primarily formed committees making independent expenditures
ittee for his or her election will likely not
This chapter reviews the following special reports that may be
required.
24-Hour Contribution Reports (Form 497)
24-Hour Independent Expenditure Reports (Form 496)
Paid Spokesperson Reports (Form 511)
Reports of Communications Identifying State Candidates (Form
E-530)
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FPPC Reporting Forms
Your CommitteeFile
Receives Contributions:
Receives contributions totaling $1,000 or more from a single source during the 90 days Form 497
before the election or on the date of the election
Makes Independent Expenditures:
Makes independent expenditures totaling $1,000 or more to support or oppose a single Form 496
candidate or ballot measure during the 90 days
or on the date of the election
Makes independent expenditures totaling $5,000 or more to support or oppose the Form 496
of a single local measure
Makes independent expenditures totaling $1,000 or more to support or oppose a single Form 462
candidate or ballot measure
Makes Payments:
state
Makes contribution(s) totaling $10,000 or more to Form 460
quarter of an odd-numbered year
Makes contributions totaling $1,000 or more to another candidate or ballot measure Form 497
the election, or to a state or county political party committee during the 90 days before any
state election or on the date of the election
Makes contributions totaling $5,000 or more to support or oppose the of a Form 497
single local measure
Makes expenditures for an individual to appear in a ballot measure advertisementForm 511
state
candidate within 45 days before Form E-530
A. 24-Hour Contribution Report (Form 497)
Quick
The 24-hour contribution report provides immediate reporting of Tip
contributions received or made near or on the election date. The Form
formed committee:
Receives
contributions that total in the aggregate $1,000
or more from a single source during the 90 days before the
Makes
contributions that total in the aggregate $1,000 or more
to a candidate or a committee primarily formed to support a
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candidate(s) or ballot measure(s) during the 90 days before
uding the date of the
Makes
contributions that total in the aggregate $1,000 or more
to a state or county political party committee during the 90 days
before any state election, including the date of the election.
Makes
contributions that total in the aggregate $5,000 or more
to support or oppose the of a single local initiative
or referendum ballot measure.
campaign statements as if it were formed or existing primarily
to support or oppose the local initiative or referendum ballot
measure.
Contributions reported on the Form 497 must also be reported on the
xt Form 460.
Ex 10.1
Quick
Tip
Ex 10.2
Quick
Tip
name will not appear on a ballot
committee receives $1,000 or more during the
90 days before the election,including the date of the election.
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When and Where to File the Form 497
Quick
Tip
within 24 hoursreceiving or making
of
contributions as described above. A contribution is received on
the date the candidate, committee, or an agent of the committee
obtains possession or control of the check or nonmonetary item that
constitutes a contribution. (See Chapter 2.) A contribution is made on
the date it is mailed, delivered, or otherwise transmitted. A committee
that makes a nonmonetary contribution must notify the recipient of
within 24 hours by personal delivery, fax, or
guaranteed overnight delivery.
Exceptions:
within 48 hoursreceiving
of a
nonmonetary contribution.
contributions that total $5,000 are made to support or oppose
Filing deadlines are extended to the next business day when they
fall on a Saturday, Sunday, or
holiday immediately prior to an election. For example, a fundraiser
held on a Friday evening results in several individuals making
the Form 497 on the following Monday. However, if the fundraiser
is held the Friday evening of the week before
s not apply, so the Form 497
Except for the Form 497 triggered at $5,000, t
overnight delivery service, or personal delivery. Regular mail may not
may accept the Form 497 via email.
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Reporting Multiple Nonmonetary Contributions
If a committee anticipates that more than one nonmonetary
contribution will be made to another committee or received from a
single contributor during the 90 days before the election (including
the date of the election), it
Form 497 covering the period in which the nonmonetary contributions
will be made or received. The report must disclose the total value of
nonmonetary contributions that will be made, or, if the actual value of
faith estimate of the value. If an estimated value differs from the
reported amount by 20 percent or more, the committee must amend
the Form 497 within 24 hours from the time the committee knows that
the estimated value is incorrect.
B
A
1
Completing the Form 497
A
Filer Information
telephone number, street address,
city, state, zip code, and committee ID number.
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B
Date, Report Number, Number of Pages
the number of pages included in the report.
1
Contributions Received
For contributions received, provide:
The date received.
street address, and zip code.
The contributor code. For each itemized contributor, check
the box indicating whether the contributor is an individual, a
uch as a business entity), a political party,
or a small contributor committee.
If the contributor is an individual, his or her occupation and
employer must be provided. If the individual is self-employed,
the name of the business must be provided.
The amount of the contribution. Check the box if it was a loan.
Contributions Made
For contributions made, provide:
The date made.
name, street address, and zip code.
candidate).
The ballot measure number or letter and jurisdiction (if the
contribution is made to a ballot measure committee).
The amount of the contribution.
The date of election.
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Amending the Form 497
the corrected or missing information, assign a new unique identifying
number as the Report Nu
the identifying number of the report being amended. Describe the
reason for the amendment in the space provided at the bottom of the
Answering Your Form 497 Questions
A.
before the election, or on the date of the election, she loans
her campaign committee $1,000?
funds that are loaned to or
contributed to the committee trigger the Form 497 requirement.
B.
before the election (or on the date of the election) she
,
transfers campaign funds totaling $1,000 or more from
currently seeking election to?
No. Transfers among a candi
election committees are reported as miscellaneous increases to
cash, not as contributions.
C. A committee will receive nonmonetary contributions from
a single source during the 90 days before the election
,
including the date of the election. The contributions
involve several days of telephone banking by paid
nonmonetary contributions anticipated to be received from
this source during the 90 days before the election?
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Yes. The committee may make a good faith estimate of the
value that will be received during the period. The Form 497
nonmonetary contributions. If the actual value differs from the
estimated amount by 20 percent or more, the estimated report
must be amended within 24 hours of determining the correct
amount.
D.
forgives a loan of $1,000 or more during the 90 days before
the electionincluding the date of the election?
,
Yes. A loan forgiveness is reported as a contribution and
triggers the Form 497 requirement.
E. A candidate has one open committee for a past election
and one for the current election. If the committee for the
past election receives $1,000 or more from a single source
in the 90-day, 24-hour reporting period for the current
Form 497?
Yes. When a candidate is in a 90-day reporting period,
contributions totaling $1,000 or
Ex 10.3
committees trigger the Form 497 requirement.
B. Independent Expenditure Reporting
As described in Chapter 6, a payment for a communication that
expressly advocates support of or opposition to a candidate or ballot
measure, which is not made at the behest of the candidate or measure
examples to assist committees in determining whether a payment
made for a communication is considered an independent expenditure.
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several forms so that voters are fully informed about who is paying for
the communications that urge voters to support or oppose a particular
candidate or ballot measure. Because the affected candidate or
measure committee will not report the expenditures, the committee
independent expenditures were
not coordinated with the listed candidate or ballot measure (or the
A committee that makes an independent expenditure of $1,000 or
more the forms listed below.
Form 496 (24-Hour Independent Expenditure Report)
What is the Date an Independent Expenditure is Made?
A payment made in connection with the development, production, or
dissemination of a communication that is an independent expenditure
must be reported no later than the date the communication is
mailed, broadcast, or otherwise disseminated to the public. If the
communication is never disseminated to the public, it need not be
reported.
Candidate Controlled Election Committees
Communications paid for by a ca
support his or her own election, or to oppose his or her opponent,
are direct campaign expenditures, not contributions or independent
expenditures.
If a candidate pays for a communication supporting his or her own
candidacy that also supports or opposes a ballot measure, the
payment is not considered a contribution or independent expenditure
made in connection with the ballot measure.
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If a candidate pays for a communication that supports another
candidate, and the payment is not made at the behest of the endorsed
candidate, the payment is not considered to be an independent
expenditure if: (1) the candidate paying for the communication also
is listed on the same ballot as the paying candidate: and (3) the
communication is targeted only to the potential voters in the paying
Ex 10.4
Primarily Formed Committees
A committee that is primarily formed to support or oppose a candidate
is not associated with the candidate. Therefore, payments made for
communications that expressly advocate support or opposition of the
candidate are considered to be independent expenditures because
they are not made at the behest of the candidate.
Filing Deadlines for Independent Expenditure Forms
Ex 10.5
the independent expenditure forms. Each of the forms is discussed in
detail below.
DeadlineFormFiling Location
Within 24 hours496
election is held
462FPPC
expenditure
24-Hour Independent Expenditure Report (Form 496)
The 24-hour Independent Expenditure Report provides immediate
disclosure of independent expenditures made near or on the election
expenditures totaling $1,000 or more to support or oppose a single
candidate or a single ballot measure during the 90 days before the
including the date of the election.
Note:
The Sacramento Superior Court ruled in
Reed v. Fair Political Practices Commission that San Jose Mayor
Reed was not subject to independent expenditure restrictions. For
more information, contact
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Expenditures reported on the Form 496 must also be reported on the
campaign statement (Form 460). The Form
When and Where to File the Form 496
within 24 hours
of making an
during the 90 days
independent expenditure of $1,000 or more
preceding the election,including the date of the election, in which the
candidate or measure will be voted on. An independent expenditure is
made when the communication is disseminated to the public. There is
hours regardless of the day of the week. A separate Form 496 must
statements for the candidate or measure supported or opposed. (See
the chart below.) This allows voters in the affected jurisdiction to have
access to reports disclosing who is spending funds attempting to
Local Elections:
overnight delivery, personal delivery, or email, if available. Regular
mail may not be used. A local ordinance may require that the form
State Elections:
candidate or measure. No paper copies are accepted. If the Form
10-day Independent Expenditure Report (Form 496)
when a committee makes independent expenditures that total in the
aggregate $5,000 or more to support or oppose the of a
single local initiative or referendum ballot measure.
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Jurisdiction of Candidate
Location of Filing Form 496
Ex 10.6
or Measure Supported/
Opposed
StatewideSecretary of
only
Senate or Assembly DistrictSecr
only
CalPERS/CalSTRSSecretary
only
Ex 10.7
Multi-CountyCounty with the largest number of
registered voters in the jurisdiction
CountyCounty in which the candidate or
measure will appear on the ballot.
measure likely to appear on the
CityCity in which the candidate or
measure will appear on the ballot
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A
B
1
2
3
Completing the Form 496
A
Filer Information
address, city, state, zip code,
telephone number, and committee ID number.
B
Date, Report Number, Number of Pages
the number of pages included in the report.
1
Name of Candidate or Ballot Measure Supported or Opposed
Provide the name of the candidate supported or opposed and the
of the ballot measure supported or opposed, the jurisdiction in which
the measure is being voted upon, and its number or letter if it has been
assigned. Indicate whether the independent expenditure supported or
opposed the candidate or ballot measure.
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Quick
2
Independent Expenditures Made
Tip
Provide the date the committee made the independent expenditure.
the independent expenditure (e.g., radio advertisement, billboard,
mailing) and the cumulative-to-date total for independent expenditures
expenditure in the
3
Contributions of $100 or More Received
Disclose contributions of $100 or more received since the closing
independent expenditure. If no previous campaign statement has
January 1 of the current calendar year.
Disclose the name and street address of the contributor and, if the
contributor is an individual, his or her occupation and the name of his
or her employer. If the individual is self-employed, disclose the name
of the business. Also disclose the date and amount of the contribution,
the contributor code, and type of contribution. If the contribution is a
on the Form 496, it is not necessary to report that contribution on
statement (Form 460 or Form
450).
Amending the Form 496
the corrected or missing information, assign a new unique identifying
number as the Report Nu
the identifying number of the report being amended. Describe the
reason for the amendment in the space provided at the bottom of the
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Ex 10.8
expenditure of $1,000 or more in a calendar year to support
or oppose a single candidate or a single ballot measure. The
independent expenditure to verify
are indeed independent and have not been coordinated with the
affected candidate or ballot measure committee (or the opponent).
unreported contributions or reimbursements to make the independent
expenditures.
When and Where to File the Form 462
Ex 10.9
support or oppose a candidate or measure in a calendar year. An
independent expenditure is made when the communication is
disseminated to the public. A candidate or measure is listed only once
for each election. Primary, general, and runoff elections are considered
separate elections.
fppc.ca.gov). The originally signed form must be maintained with the
rds for four years.
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1
2
3
Completing the Form 462
1
Name of Committee
Enter the name and street address of the committee that is making the
independent expenditure(s). The address should be the same as the
assigned committee ID number.
2
Candidates or Measures
List the name of the candidate(s) or ballot measure(s) and mark the
sought or held. Thrisdiction (and district
if applicable) and the date of the election must also be listed.
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3
The form must be reviewed and signed
approving the political activity of the committee. (See Chapter
individual must sign the Form 462. The individual must be listed on
individual is not required to sign each Form 462. In the case of a
Amending the Form 462
the corrected or missing informat
and describe the reason for the amendment in the space provided.
change. Like the original, the amendment must be signed and dated
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Answering Your Independent Expenditure Questions
A.
The Form 462 is required to identify the candidate or measure
candidate or measure is listed on the Form 462, no further
election. If a committee makes independent expenditures
related to a candidate in the primary election and later makes
independent expenditures related to the same candidate in
separate elections.
B. Is an independent expenditure reportable by the committee
for the candidate or the ballot measure named in the
communication?
No. Because the communication is not made at the behest of
the candidate or ballot measure committee, the expenditure for
the communication is not reported by the affected candidate
or measure committee. The person making the independent
expenditure has the reporting obligations.
rolled committee making an
independent expenditure when it pays for a communication
that supports the controlling candidate and supports or
opposes a ballot measure listed on the same ballot?
No. This type of expenditure considered to be a direct campaign
expenditure to promot
D. May a committee pro-rate the value of a communication
that contains both an independent expenditure and a non-
political message?
Yes. The committee should value the independent expenditure
as the portion of the costs directly associated with sending the
message that expressly advocates support or opposition of a
candidate or ballot measure.
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C.Special Odd-Year Report (Form 460 or 450)
The odd-year report is designed to timely show if a committee is
making large contributions to a number of state legislators or elected
Ex 10.13
as the state budget or controversial legislation is being considered.
the committee makes contributions totaling $10,000 or more to
, their controlled committees, or committees
The special odd-year report is completed in the same manner as a
regular preelection or semi-annual statement (see Chapter 8) and
includes all of the commithe reporting period, not
When and Where to File the Special Odd-Year Report
campaign disclosure statement (Form 460 or Form 450).
Period CoveredFiling Deadline
January 1 through March 31April 30
July 1 through September 30
D.Advertisement Reports
Ex 10.14
Paid Spokesperson Report (Form 511)
equires that when a teacher,
giving their expert views for or against the measure, the advertisement
must disclose if the person has been paid. The Form 511 must be
ballot measure advertisement in the following situations:
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Payments of $5,000 or More:
The committee makes expenditures
Ex 10.15
totaling $5,000 or more to an individual for his or her appearance in
defeat of a state or local ballot measure.
Payments of Any Amount:
The committee makes expenditures
of any amount to an individual for his or her appearance in an
defeat of a state or local ballot measure and the advertisement states
or suggests that the individual is a member of an occupation that
Quick
Tip
training as a prerequisite to engage in that occupation (nurse, doctor,
Committees that pay a spokesperson to appear in a ballot measure
advertisements. (See Chapter 7.)
When and Where to File the Form 511
made or the date the services are received, whichever is earlier. The
campaign statements (Form 460 or Form 450). Instructions for
completing the Form 511 are provided on the FP
Communications Identifying State Candidates (Form E-530)
The Act requires reporting of electioneering communications for state
candidates, such as billboards on
makes a payment or a promise of a payment totaling $50,000 or more
for a communication disseminated within 45 days of an election that
expressly advocate the election or defeat of the candidate.
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The report must disclose the amount and date of the payment(s),
the communication. In addition, if $5,000 or more was received or
promised from a single source to pay for the communication, the
report must include the name and address of the contributor, as well
as the date and amount received or promised. If the contributor is
an individual, the indiviployer must also be
included.
to the Secretary of State. This declaration must be retained in the
following language:
onable diligence in preparing this report and
to the best of my knowledge the information contained herein
is true and complete. I certify under penalty of perjury under
the laws of the State of California that the foregoing is true and
When and Where to File the Form E-530
within 48 hours
State of making or promising to make a payment of
$50,000 or more. There is no paper version of the Form E-530. To
access the online form, go to the Secretary of
with the Secretary of State, the committee will need to request a
Request) is located on the Secr
Campaign Finance.
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Authority
The following Government Code sections and Title 2 regulations
provide authority for the information in this chapter:
Government Code Sections
81004.5
82025Expenditure.
82031Independent Expenditure.
82036Late Contribution.
82036.5Late Independent Expenditure.
82044Payment.
84200.6Special Campaign Statements and Reports.
84202.7
Reports.
84203
84203.3Late In-Kind Contributions.
84204
84204.5
84213
84511
85310Communications Identifying State Candidates.
85501Prohibition on Independent Expenditures by Candidate
Controlled Committees.
Title 2 Regulations
18116Reports and Statements.
18421.1Disclosure of the Making and Receipt of Contributions.
1842524-Hour Contribution Reports.
18428Reporting of Contributions and Independent
Expenditures Required to be Aggregated.
18450.11Spokesperson Disclosure.
18465.1
18531.10Communications Identifying State Candidates.
18539.2Reporting Payments Pursuant to Government Code
Section 85310.
1855024-Hour Independent Expenditure Reports.
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11
CHAPTER
FOA
ILINGBLIGATIONSFTERTHE
ET
LECTIONANDERMINATINGTHE
C
OMMITTEE
committee primarily formed to support or oppose a candidate will
terminate after the election. The Political Reform Act (Act) does not
the committee remains open. In addition, the $50 annual fee must be
paid to the Secretary of State.
This chapter addresses the reporting requirements for successful
candidates, defeated candidates, primarily formed committees, and
the guidelines for terminating a campaign committee.
A. Successful Candidates
immediately following the election and for subsequent non-election
and terminated their commdates Using Campaign
to determine the requirements for a
and Candidate Campaign Statement
provided $2,000 or more is not raised or spent during that calendar
non-election year.
Fair Political Practices CommissionChapter 11. 1Campaign Manual 2
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(Recipient Committee Campaign Statement) in connection with the
the committee remains open. In addition, other special reports may
his or her committee and campaign bank account or terminating the
who maintains a committee may:
Use funds for a future electididates Using
Campaign Funds for a Fu
the Form 460.
are not listed on a ballot and do not receive any contributions or make
any expenditures. This exception applies even if a judge or unpaid
not received any contributions or made any expenditures (excluding
bank fees and interest).
To determine whether $200 has been received, only the elected
not be counted toward the $200.
Fair Political Practices CommissionChapter 11. 2Campaign Manual 2
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the Form 470.
Behested Payment Reports (Form 803)
community (such as for a local school, to build a new community
yments are donations made to a
a legislative, governmental or charitable purpose. These payments are
not made for personal purposes (i.e., gifts) or campaign purposes (i.e.,
contributions).
charitable, governmental, or legislative event, such as a job fair or a
conference on public policy issues, with outside sources. Payments
made by outside sources in connection with these events generally
are considered behested payments.
Form 803 Filing Procedures:
Quick
Tip
File the Form 803 when a person donates $5,000 or more in
a calendar year to charitable organizations or events at the
more during the calendar year, subsequent payments of any
amount from that source during the calendar year must be
reported.
days following the date of the payment.
Ex 11.1
statements within 30 days of receiving the form. The Form 803
is a public record. See the Form 803 example below.
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Form 803 Exceptions:
A payment is not subject to behested payment reporting if
the payment is made in response to a fundraising solicitation
from a charitable organization requesting a payment where
or letterhead listing the governing body contains a majority
information.
A payment is not subject to behested payment reporting if the
state, or federal government agency.
Fair Political Practices CommissionChapter 11. 4Campaign Manual 2
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Fair Political Practices CommissionChapter 11. 5Campaign Manual 2
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Legal Defense Committees
or administrative proceedings arising directly out of the conduct of
an election campaign, the electoral process, or the performance
defense must be held in a separate account, they may be subject to
contribution limits if provided by local ordinance, and they must be fully
reported. Any funds raised may only be spent to defray attorneys fees
18530.45 for additional information.)
Recall Elections
holds) to receive contributions and make expenditures to oppose the
the recall election.
An alternative option is to form a separate recall committee. A recall
of intent to recall under Elections Code Section 11201. The committee
the name of the committee. See Campaign Disclosure Manual 3 as
a recall committee is considered a ballot measure committee. (FPPC
B. Defeated Candidates
Form 470 Filers
no further reporting obligations so long as less than $2,000 was raised
or spent during the calendar year.
Fair Political Practices CommissionChapter 11. 6Campaign Manual 2
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Form 460 Filers
Form 460 on a semi-annual basis and pay the annual committee fee
as long as the committee remains open. In addition, other special
reports may be required.
There is no deadline for terminating the committee or disposing of
wants to use the funds for a future election, the funds must be
redesignated or transferred as discussed below.
C. Candidates Using Leftover Campaign Funds for a Future
Election
Ex 11.2
for a future election so long as the funds are not c
Campaign funds
ents below are met.
become surplus on the 90th day after the closing date for the
postelection reporting period or upon the 90th day after the date
Surplus campaign funds
are subject to restrictions, as described in Chapter 5, and may not be
used for a future election.
To use money remaining in the campaign bank account for a future
election to the before the funds become surplus, a local
candidate may redesignate his or her committee and campaign bank
account by:
new Form 501(Candidate Intention Statement)
Filing a for
amended Form 410(Statement of Organization)
Filing an to
Quick
Tip
To use money remaining in the campaign bank account for a future
candidate must:
Fair Political Practices CommissionChapter 11. 7Campaign Manual 2
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new Form 501(Candidate Intention Statement)
File a for the
Ex 11.3
new Form 410(Statement of Organization)
File a
new bank account
. So long as the funds are not
surplus and there are no local restrictions, the campaign funds
from the other account may be transferred to the new bank
account.
D. Primarily Formed Committees
Generally, a committee established primarily to support or oppose
a particular candidate(s) will terminate after the election, but the
committee may remain open to:
Raise funds to pay debts.
Support or oppose other candidates or measures. The
Ex 11.4
campaign statements (i.e., Form 460 or Form 450) and pay the annual
committee fee as long as the committee remains open.
E. Terminating the Committee
There is no deadline for terminating a committee controlled by a local
refer to Campaign Disclosure Manual 1 for State Candidates for the
termination requirements.
A primarily formed committee also does not have a deadline to
terminate. However, the committee, by its nature, may need to
change its committee status if it remains open after the election.
campaign statements (i.e., Form 460 or Form 450) and pay the annual
Fair Political Practices CommissionChapter 11. 8Campaign Manual 2
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requirements that must be met in order for a committee to terminate.
A committee may terminate only if the committee:
Has ceased receiving contributions or making expenditures
and does not anticipate receiving contributions or making
reportable transactions, including the disposition of leftover
Has eliminated all debts, or has no intention or ability to
discharge debts.
Ex 11.5
of termination generally is the date all funds have been expended.
Complete Section 1 and the treasurer or assistant treasurer must sign
expended and the committee has no cash on hand. Check the
the cover page.
File the original Form 410 with the Secretary of State and a copy
original campaign statements. File the Form 450 or 460 in the
Fair Political Practices CommissionChapter 11. 9Campaign Manual 2
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F. Receiving a Refund After the Committee Has Terminated
Ex 11.6
Generally, once a committee has terminated, no transactions may be
made by the committee. However, a candidate controlled committee
that has terminated may accept a refund from a governmental
committee may also accept a refund from a vendor or other person
without reopening if the committee did not know of its entitlement to
the refund prior to termination and the refund or refunds total no more
than $10,000.
Form 460 for the period in which the refund was received and report
the refund as a miscellaneous increase to cash on Schedule I of the
Form 460 and as an expenditure on Schedule E when the funds are
spent. See Chapter 5 for the permissible uses of campaign funds.
For the rules related to transferring the refund to another committee.
see Regulation 18404.1.
Fair Political Practices CommissionChapter 11. 10Campaign Manual 2
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Answering Your Questions
A.
salary as a school board member?
salary.
B. May I terminate my committee even if I have outstanding
debt?
outstanding debt, you are declaring that you do not have the
ability to discharge debts, loans, or other obligations. However,
if you plan to raise additional funds, or pay the outstanding debt
with personal funds, you may not terminate.
C. After terminating my committee, I received a refund from
I report this?
to cash (on Schedule I). You must also report the expenditure
of the funds on Schedule E. See Chapter 5 for the permissible
uses of campaign funds.
keep the refund and you are not required to report it on a
campaign statement.
Fair Political Practices CommissionChapter 11. 11Campaign Manual 2
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published. The group is claiming that my committee owes
them for part of the costs of the survey, but my position
is that, since they conducted the survey without my
authorization, my committee does not owe them for the
survey. The group has indicated that it may seek a small
claims court judgment. I would like to close my committee,
but should the committee remain open until the issue is
resolved?
committee to terminate is for the treasurer to state, under
penalty of perjury, that the committee has eliminated all debts or
has declared that it has no intention or ability to discharge all of
its debts, loans received, and other obligations.
If your treasurer does not want to declare that the committee
has no intention or ability to discharge all of its debts, loans
received, and other obligations, we recommend that the
committee remain open until the issue is resolved.
Fair Political Practices CommissionChapter 11. 12Campaign Manual 2
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Authority
The following Government Code sections and Title 2 regulations
provide authority for the information in this chapter:
Government Code Sections
82004.5Behested Payment.
82041.3Made at the Behest of.
82015Contribution.
84103
84200Semi-Annual Statements.
84206Candidates Who Receive or Spend Less than $2,000.
84214Termination.
84224Behested Payment Disclosure.
85200Statement of Intention to be a Candidate.
85201Campaign Bank Account.
85304.5
89519Use of Surplus Campaign Funds.
Title 2 Regulations
18215Contribution.
18215.3 Behested Payments Reporting.
18402Committee Names.
18404Termination of Candidat
Requirements.
18404.1Termination and Reopening of Committees.
18406
Receive and Spend Less than $2,000 in a Calendar
Year.
18426Semi-Annual Statement Early Filing.
18530.45
18531.5Recall Elections.
18951Surplus Funds.
Fair Political Practices CommissionChapter 11. 13Campaign Manual 2
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A
PPENDIX
AP
PPENDIXBOUTTHEOLITICAL
RA/ HGH
EFORMCTOWTOETELP
The Political Reform Act of 1974
was a voter-approved initiative
the Act requires the truthful and accurate disclosure of campaign
contributions and expenditures during elections.
The Fair Political Practices Commission
The Fair Political Practices Commission (FPPC) is the independent,
nonpartisan state agency authorized to implement, interpret, and
enforce the provisions of the Act. The Commission is comprised
of a full-time chair appointed by the Governor, and four part-time
commissioners, one each appointed by the Controller, the Attorney
General, the Secretary of State, and the Governor. Each member
serves a four-year term and no more than three members may be from
Executive, Administration and Technology, Enforcement, Legal, and
External Affairs and Education.
Governing Statutes
The Political Reform Act is contained in Government Code Sections
Regulations
Regulations interpreting the Political Reform Act are located at Title 2,
Division 6 of the California Code of Regulations, beginning at Section
18110.
Opinions and Advice Letters
The FPPC periodically issues opinions interpreting provisions of the
Political Reform Act. The opinions are adopted at a public meeting,
with opportunity for input from interested persons.
Fair Political Practices CommissionAppendix - 1Campaign Manual 2
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In addition, FPPC staff issues written advice letters as to the
applicability of the Political Reform Act and regulations to a particular
factual situation. Refer to the information on requesting written advice
from the FPPC available on the FPPC website.
Contact Information for the FPPC
Fair Political Practices Commission
1102 Q Street, Suite 3000
Sacramento, CA 95811
(916) 322-5660
www.fppc.ca.gov
Twitter: @CA_FPPC
Facebook: CA FPPC
FPPC Website
advice letters, sign up for RSS feeds, or to be put on mailing lists. The
so contains a wealth of helpful information,
including:
The Political Reform Act and its corresponding regulations
Commission opinions
Notices of Commission meeting dates, agendas, supporting
documentation for agenda items, and meeting summaries
Manuals, fact sheets, and useful summaries of the law
Schedules of upcoming seminars, webinars, and educational
workshops
Fair Political Practices CommissionAppendix - 2Campaign Manual 2
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Additional Campaign Manuals
Additional copies of this manual, and manuals for other types of
campaign committees are available from the FPPC, the Secretary of
available for:
formed to support/oppose state candidates
General purpose recipient committees (including PACs,
sponsored committees, political party committees, and county
central committees)
Ballot measure committees
Major donor and independent expenditure committees
Slate mailer organizations
Obtaining Information Elsewhere
A subscription for regulations is available from:
South San Francisco, CA 94083
(800) 888-3600
services:
Westlaw (800) 328-9352
(Advice letters from 1986 to present)
Lexis-Nexis (800) 227-9597
(Advice letters from 1990 to present)
Fair Political Practices CommissionAppendix - 3Campaign Manual 2
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Other Resources
The Secretary of State, city clerks, and county clerks or registrars
candidate or committee.
Secretary of State
The Secretary of State is also responsible for issuing campaign
(916) 653-6224
www.sos.ca.gov
Federal Election Commission
The Federal Election Commission answers questions regarding
federal elections and contributions to all candidates from national
banks, national corporations, and foreign nationals.
Federal Election Commission
999 E Street, NW
Washington, DC 20463
(800) 424-9530
www.fec.gov
Franchise Tax Board
The California Franchise Tax Board is responsible for responding
to questions regarding tax status, tax-deductibility of political
contributions, 501(c)(3) groups, audits, or any tax-related questions.
(800) 852-5711 or (800) 338-0505
www.ftb.ca.gov
Fair Political Practices CommissionAppendix - 4Campaign Manual 2
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Internal Revenue Service
The Internal Revenue Service provides assistance regarding federal
(877) 829-5500 (located in Washington, D.C.)
(800) 829-3676 (taxpayer ID number)
www.irs.gov
Federal Communications Commission
The Federal Communications Commission answers questions
regarding rates for purchasing broadcast time and equal access to
broadcast media.
(888) 225-5322 (located in Washington, D.C.)
www.fcc.gov
Email: fccinfo@fcc.gov
Local Campaign Ordinances
subject to additional reporting or other requirements under a local
campaign ordinance. Common examples include the requirement
preelection statement. A city or county campaign ordinance may
never preempt state law.
Privacy Information Notice
Information required on all FPPC forms is used by the FPPC to
administer and enforce the Political Reform Act (Government Code
Code of Regulations sections
red by these forms is mandated
by the Political Reform Act. Failure to provide all of the information
required by the Act is a violation subject to administrative, criminal
or civil prosecution. All reports and statements provided are public
records open for public inspection and reproduction.
Fair Political Practices CommissionAppendix - 5Campaign Manual 2
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If you have any questions regarding this Privacy Notice, please contact
the FPPC at:
General Counsel
1102 Q Street, Suite 3000
Sacramento, CA 95811
(916) 322-5660
Chapter 9.)
Enforcement
The Fair Political Practices Commission, the Attorney General, county
district attorneys, and elected city attorneys of charter cities have
enforcement authority under the Act. Failure to provide all or any part
of the information required by the Political Reform Act is a violation
subject to:
An administrative enforcement proceeding before the Fair
Penalties of up to $5,000 per violation of the Political Reform Act may
be imposed.
Fair Political Practices CommissionAppendix - 6Campaign Manual 2
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