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HomeMy Public PortalAboutFPPC Manual 2 - Local CandidatesLC, SC J, T OCALANDIDATESUPERIOROURTUDGESHEIR CC, P F ONTROLLEDOMMITTEESANDRIMARILYORMED C LC OMMITTEESFOROCALANDIDATES M 2 CD 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. Fair Political Practices CommissionContents - 1Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionContents - 2Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionContents - 3Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionIntroduction - 1Campaign Manual 2 advice@fppc.ca.govAugust 2018 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) Fair Political Practices CommissionIntroduction - 2Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 1. 1Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionChapter 1. 2Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 1. 3Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionChapter 1. 4Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionChapter 1. 5Campaign Manual 2 advice@fppc.ca.govAugust 2018 Quick 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. Fair Political Practices CommissionChapter 1. 6Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionChapter 1. 7Campaign Manual 2 advice@fppc.ca.govAugust 2018 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). Fair Political Practices CommissionChapter 1. 8Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 1. 9Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 1. 10Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Quick 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 Fair Political Practices CommissionChapter 1. 11Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionChapter 1. 12Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 1. 13Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionChapter 1. 14Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 1. 15Campaign Manual 2 advice@fppc.ca.govAugust 2018 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). Fair Political Practices CommissionChapter 1. 16Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 1. 17Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 1. 18Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionChapter 1. 19Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionChapter 1. 20Campaign Manual 2 advice@fppc.ca.govAugust 2018 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). Fair Political Practices CommissionChapter 1. 21Campaign Manual 2 advice@fppc.ca.govAugust 2018 A 2 1 3 Completing the Form 410 A Statement Type which the committee met the $2,000 amend information on an existing committee). Fair Political Practices CommissionChapter 1. 22Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Quick Tip 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. Fair Political Practices CommissionChapter 1. 23Campaign Manual 2 advice@fppc.ca.govAugust 2018 Quick 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. Fair Political Practices CommissionChapter 1. 24Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionChapter 1. 25Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 1. 26Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 1. 27Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 1. 28Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 1. 29Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 2. 1Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Quick Tip 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 Fair Political Practices CommissionChapter 2. 2Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 2. 3Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Quick Tip 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. Fair Political Practices CommissionChapter 2. 4Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Quick Tip 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 Tip 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. Fair Political Practices CommissionChapter 2. 5Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Quick Tip 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 Fair Political Practices CommissionChapter 2. 6Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 2. 7Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 2. 8Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 2. 9Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 2. 10Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionChapter 2. 11Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionChapter 2. 12Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 2. 13Campaign Manual 2 advice@fppc.ca.govAugust 2018 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: Fair Political Practices CommissionChapter 2. 14Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Quick Tip 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. Fair Political Practices CommissionChapter 2. 15Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Tip 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). Fair Political Practices CommissionChapter 2. 16Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 2. 17Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 2. 18Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 2. 19Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 2. 20Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 2. 21Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Tip services and, based on that written promise, the committee expends funds or enters into a legally-enforceable contract to purchase the goods or services). Fair Political Practices CommissionChapter 3. 1Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 3. 2Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 3. 3Campaign Manual 2 advice@fppc.ca.govAugust 2018 Quick Note: Tip 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 Fair Political Practices CommissionChapter 3. 4Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Tip 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 Fair Political Practices CommissionChapter 3. 5Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 3. 6Campaign Manual 2 advice@fppc.ca.govAugust 2018 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: Fair Political Practices CommissionChapter 3. 7Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 3. 8Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 3. 9Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 3. 10Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Quick report transferred funds. Tip 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 Fair Political Practices CommissionChapter 3. 11Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 3. 12Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 3. 13Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Quick nonmonetary contribution from the organization. If the committee pays Tip 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 Fair Political Practices CommissionChapter 3. 14Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionChapter 3. 15Campaign Manual 2 advice@fppc.ca.govAugust 2018 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: Quick s controlled committees, or to Tip 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. Fair Political Practices CommissionChapter 3. 16Campaign Manual 2 advice@fppc.ca.govAugust 2018 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: Fair Political Practices CommissionChapter 3. 17Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 3. 18Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionChapter 3. 19Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 3. 20Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 3. 21Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 3. 22Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 3. 23Campaign Manual 2 advice@fppc.ca.govAugust 2018 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, Quick but provides that cities and counties may adopt contribution limits Tip 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 Fair Political Practices CommissionChapter 4. 1Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 4. 2Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Quick reporting period of the campaign statement on which the contribution Tip 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 Fair Political Practices CommissionChapter 4. 3Campaign Manual 2 advice@fppc.ca.govAugust 2018 Commingling Funds Quick 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 Fair Political Practices CommissionChapter 4. 4Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 4. 5Campaign Manual 2 advice@fppc.ca.govAugust 2018 C. Public Funds and Public Resources Quick Under Government Code Section 85300, the use of public moneys for Tip 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 Fair Political Practices CommissionChapter 4. 6Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionChapter 4. 7Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 4. 8Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionChapter 4. 9Campaign Manual 2 advice@fppc.ca.govAugust 2018 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: Fair Political Practices CommissionChapter 5. 1Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionChapter 5. 2Campaign Manual 2 advice@fppc.ca.govAugust 2018 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). Fair Political Practices CommissionChapter 5. 3Campaign Manual 2 advice@fppc.ca.govAugust 2018 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, Fair Political Practices CommissionChapter 5. 4Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 5. 5Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 5. 6Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 5. 7Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionChapter 5. 8Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionChapter 5. 9Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 5. 10Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 5. 11Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 5. 12Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 5. 13Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 6. 1Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionChapter 6. 2Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 6. 3Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 6. 4Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionChapter 6. 5Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionChapter 6. 6Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionChapter 6. 7Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 6. 8Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 6. 9Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 6. 10Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 6. 11Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 6. 12Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionChapter 6. 13Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 7. 1Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionChapter 7. 2Campaign Manual 2 advice@fppc.ca.govAugust 2018 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) Fair Political Practices CommissionChapter 7. 3Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionChapter 7. 4Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionChapter 7. 5Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionChapter 7. 6Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionChapter 7. 7Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 7. 8Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 7. 9Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionChapter 7. 10Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionChapter 7. 11Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 7. 12Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 7. 13Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 7. 14Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 7. 15Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 7. 16Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 7. 17Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 7. 18Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 7. 19Campaign Manual 2 advice@fppc.ca.govAugust 2018 18450.1 18450.5Amended Advertising Disclosure. 18450.11Spokesperson Disclosure. 18523.1Written Solicitation for Contributions. Fair Political Practices CommissionChapter 7. 20Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 8. 1Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 8. 2Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 8. 3Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionChapter 8. 4Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionChapter 8. 5Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 8. 6Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 8. 7Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 8. 8Campaign Manual 2 advice@fppc.ca.govAugust 2018 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). Fair Political Practices CommissionChapter 8. 9Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 8. 10Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionChapter 8. 11Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 8. 12Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 8. 13Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 8. 14Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 8. 15Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 8. 16Campaign Manual 2 advice@fppc.ca.govAugust 2018 16 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. Fair Political Practices CommissionChapter 8. 17Campaign Manual 2 advice@fppc.ca.govAugust 2018 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.) Fair Political Practices CommissionChapter 8. 18Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 8. 19Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 8. 20Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 8. 21Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 8. 22Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 8. 23Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 8. 24Campaign Manual 2 advice@fppc.ca.govAugust 2018 1257364 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 Fair Political Practices CommissionChapter 8. 25Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 8. 26Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionChapter 8. 27Campaign Manual 2 advice@fppc.ca.govAugust 2018 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, Fair Political Practices CommissionChapter 8. 28Campaign Manual 2 advice@fppc.ca.govAugust 2018 14576 23 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.) Fair Political Practices CommissionChapter 8. 29Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 8. 30Campaign Manual 2 advice@fppc.ca.govAugust 2018 8 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. Fair Political Practices CommissionChapter 8. 31Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 8. 32Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 8. 33Campaign Manual 2 advice@fppc.ca.govAugust 2018 2 14365 7 8 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. Fair Political Practices CommissionChapter 8. 34Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 8. 35Campaign Manual 2 advice@fppc.ca.govAugust 2018 4 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 Fair Political Practices CommissionChapter 8. 36Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 8. 37Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionChapter 8. 38Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 8. 39Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 8. 40Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionChapter 8. 41Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionChapter 8. 42Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionChapter 8. 43Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionChapter 8. 44Campaign Manual 2 advice@fppc.ca.govAugust 2018 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.) Fair Political Practices CommissionChapter 8. 45Campaign Manual 2 advice@fppc.ca.govAugust 2018 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.) Fair Political Practices CommissionChapter 8. 46Campaign Manual 2 advice@fppc.ca.govAugust 2018 123 4 Fair Political Practices CommissionChapter 8. 47Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 8. 48Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 8. 49Campaign Manual 2 advice@fppc.ca.govAugust 2018 123 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 Fair Political Practices CommissionChapter 8. 50Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionChapter 8. 51Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 8. 52Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 8. 53Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 8. 54Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionChapter 8. 55Campaign Manual 2 advice@fppc.ca.govAugust 2018 123 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 Fair Political Practices CommissionChapter 8. 56Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 8. 57Campaign Manual 2 advice@fppc.ca.govAugust 2018 adbceg 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. Fair Political Practices CommissionChapter 8. 58Campaign Manual 2 advice@fppc.ca.govAugust 2018 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.) Fair Political Practices CommissionChapter 8. 59Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 8. 60Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 8. 61Campaign Manual 2 advice@fppc.ca.govAugust 2018 1 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. Fair Political Practices CommissionChapter 8. 62Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionChapter 8. 63Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 8. 64Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 8. 65Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 9. 1Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 9. 2Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionChapter 9. 3Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionChapter 9. 4Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionChapter 9. 5Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionChapter 9. 6Campaign Manual 2 advice@fppc.ca.govAugust 2018 position for which the candidate does not have a committee, a Form Fair Political Practices CommissionChapter 9. 7Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 9. 8Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 9. 9Campaign Manual 2 advice@fppc.ca.govAugust 2018 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) Fair Political Practices CommissionChapter 10. 1Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionChapter 10. 2Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 10. 3Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 10. 4Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 10. 5Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 10. 6Campaign Manual 2 advice@fppc.ca.govAugust 2018 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? Fair Political Practices CommissionChapter 10. 7Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 10. 8Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 10. 9Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionChapter 10. 10Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 10. 11Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionChapter 10. 12Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 10. 13Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionChapter 10. 14Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 10. 15Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 10. 16Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 Fair Political Practices CommissionChapter 10. 17Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 10. 18Campaign Manual 2 advice@fppc.ca.govAugust 2018 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: Fair Political Practices CommissionChapter 10. 19Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 10. 20Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 10. 21Campaign Manual 2 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 10. 22Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 advice@fppc.ca.govAugust 2018 (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 advice@fppc.ca.govAugust 2018 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. Fair Political Practices CommissionChapter 11. 3Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 advice@fppc.ca.govAugust 2018 Fair Political Practices CommissionChapter 11. 5Campaign Manual 2 advice@fppc.ca.govAugust 2018 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 advice@fppc.ca.govAugust 2018 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 advice@fppc.ca.govAugust 2018 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 advice@fppc.ca.govAugust 2018 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 advice@fppc.ca.govAugust 2018 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 advice@fppc.ca.govAugust 2018 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 advice@fppc.ca.govAugust 2018 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 advice@fppc.ca.govAugust 2018 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 advice@fppc.ca.govAugust 2018 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 advice@fppc.ca.govAugust 2018 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 advice@fppc.ca.govAugust 2018 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 advice@fppc.ca.govAugust 2018 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 advice@fppc.ca.govAugust 2018 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 advice@fppc.ca.govAugust 2018 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 advice@fppc.ca.govAugust 2018