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HomeMy WebLinkAboutB-01 - FPPC Campaign Disclosure Manual 2 e'P. S'Cs° *. 17 aa' 8 ......., orc,,,fe-- , . ,,,4 '7,,%,..7,„>•,%,',...i.;,.,,,,,,..,•!,,,,,'71",7'-,,,,,,,...„.,, ,„,,,, ,..„.it,,.i.S, '''' ', 144. .4.„ ...• .., ■ . •„„, '''•• "4 1/11 tirr, ' 44 . . ..,..4,4_4 , - . .4.....tz- 4'-• . , -;.-4,' _.., ITii , ..:4, - 444,0 , , t ,- _ .-- - .. , 11 .„,. ... . .. '111# LOCAL CANDIDATES, SUPERIOR COURT JUDGES, THEIR CONTROLLED COMMITTEES, AND PRIMARILY FORMED COMMITTEES FOR LOCAL CANDIDATES CAMPAIGN DISCLOSURE 2 ,........., California Fair Political Practices Commission advice@fppc.cagov ' ' 1 (866)ASK-FPPC I writilv.fppc.ca.gov CONTENTS Introduction Introduction - 1 Chapter 1 - Getting Started 1 1 A. Candidates Raising and Spending Less than $2,000 B. Candidates Raising and Spending $2,000 or More C. Candidate Controlled Committees—One Bank Account Rule D. Committees Primarily Formed to Support or Oppose a Candidate E. Establishing a Campaign Bank Account F. Form 501 (Candidate Intention Statement) G. Form 470 (Officeholder and Candidate Campaign Statement—Short Form) H. Form 410—Statement of Organization Chapter 2 - Finance Rules 2 1 A. Committee Treasurer and Principal Officer B. Candidate/Officeholder Responsibilities C. Education D. Committee Audits E. Campaign Bank Accounts F. Recordkeeping G. Mass Mailings,Telephone Calls, and Notices to Contributors of$5,000 or More Chapter 3 - Contributions 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. Notification to Contributors of$5,000 or More J. Returning Contributions Chapter 4 - Contribution Restrictions 4 1 A. Local Contribution Limits B. Restrictions under the Political Reform Act C. Public Funds and Public Resources D. Campaign Contributions and Disqualification Niaid Fair Political Practices Commission Contents-1 Campaign Manual 2 advice @fppc.ca.gov April 2016 CONTENTS Chapter 5 - Use of Campaign Funds 5 1 A. Campaign Expenditures B. Surplus Funds Chapter 6 - Communications 6 1 A. Payments for Communications Made by Candidate's Campaign B. Payments for Communications Made by Others C. Other Communications D. Non-Contributions Chapter 7 - Advertisement Disclaimers 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 Committee Primarily Formed to Support or Oppose a Candidate E. Mass Mailings-E-Mails and Postal Mailings F. Telephone Calls saw- G. Electronic Media Ads H. Newspaper, Radio and Television Ads I. Paid Spokespersons for Ballot Measure Ads J. Updating a Disclaimer K. Penalties Chapter 8 - Committee Reports 8 1 A. Completing the Form 460 Cover Page B. Completing the Form 460 Cover Page-Part 2 C. Completing the Form 460 Summary Page D. General Rules for Reporting Contributions Received E. Completing the Form 460 Schedule A F. Completing the Form 460 Schedule B-Part 1 G. Completing the Form 460 Schedule B-Part 2 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 Commission Contents-2 Campaign Manual 2 advice @fppc.ca.gov April 2016 111 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 Chapter 9 - When and Where to File Form 460 9 1 A. General Information B. When to File C. Where to File Chapter 10 - Additional Reports 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 Chapter 11 - After the Election and Terminating the Committee 11 1 A. Successful Candidates NIS 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 Appendix — About the Political Reform Act/How to Get Help Appendix — 1 Cover image courtesy of Planetware.com Fair Political Practices Commission Contents-3 Campaign Manual 2 advice @fppc.ca.gov April 2016 INTRODUCTION Purpose of this Manual The purpose of California's Political 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 the following: • Local candidates • Superior Court judges and candidates for Superior Court • Local candidate controlled committees • Committees primarily formed to support or oppose a local '�,►, candidate(s) Since the Political Reform Act was approved by California voters in 1974, there have been more than 200 amendments to the Act's campaign disclosure provisions. This manual has been prepared to assist local candidates and committees in complying with the Act's numerous and often detailed rules. The manual is written in a "user friendly" format so that 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. This manual describes the state campaign finance and disclosure laws 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 and committees should check with their local elections office or ethics agency to determine if there are additional local requirements and *„„.,.restrictions, such as contribution limits. Fair Political Practices Commission Introduction-1 Campaign Manual 2 advice @fppc.ca.gov April 2016 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. State candidates and officeholders, their controlled committees, and committees primarily formed to support or oppose a state candidate(s) should refer to FPPC's Campaign Disclosure Manual 1. Controlling Law This manual summarizes key campaign disclosure laws and regulations and draws from years of FPPC staff advice on complying with the Act's campaign disclosure laws. Each committee's activity is 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 Advice Telephone Advice advice @fppc.ca.gov 1-866-ASK FPPC (1-866-275-3772) Fair Political Practices Commission Introduction-2 Campaign Manual 2 advice @fppc.ca.gov April 2016 GETTING STARTED 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, "candidates" includes non-incumbent candidates, officeholders, officeholders running for reelection, and officeholders running for Elected officials election to another office. are included as "candidates" under the Act until they have left elective Before raising or spending money in connection with an election, office and terminated any candidates and committee treasurers should become familiar with the committees. 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 a candidate(s) that are not controlled by the candidate(s) being supported. The FPPC's • website includes a `ow comprehensive and user- In addition to filing the campaign statements described in this friendly toolkit for new chapter, most candidates must also file a Statement of Economic candidates. Interests (Form 700). The Form 700 is used to disclose an individual's personal financial interests that could potentially be affected by the individual's decisionmaking. 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 the 12 months prior to the date of filing the declaration of candidacy. The Form 700 candidate statement is due no later than the final filing date for the declaration of candidacy and is filed with the city clerk or county elections office where the declaration of candidacy is filed. The FPPC's website contains additional information about the Form 700. A. tCartdiciates as , g an■ .Spending° ads a . A candidate who does not plan to raise or spend $2,000 or more in a calendar year, including the candidate's personal funds, must file one or both of the following campaign statements. Fair Political Practices Commission Chapter 1 1 Campaign Manual 2 advice @fppc.ca.gov April 2016 • Form 501 (Candidate Intention Statement). The Form 501 must be filed only if the candidate plans to raise or spend any money, including the candidate's personal funds. • Form 470 (Officeholder and Candidate Campaign Statement— Short Form). The Form 470 may be filed by a candidate or officeholder who does not anticipate raising or spending $2,000 or more in a calendar year. Personal funds used to pay filing or ballot statement fees are not counted toward the $2,000 committee qualification threshold. If a candidate does not raise any money and personal funds are used only to pay filing or ballot statement fees, the candidate is not required to file the Form 501. If any monetary contributions will be received from others, a separate campaign bank account must be established. If a candidate files the Form 470 covering a calendar year and later in that calendar year receives contributions totaling $2,000 or more, the candidate must file a Form 470 Supplement. The candidate must also Personal funds used to pay filing or ballot file the Form 410 (Statement of Organization) and begin filing the Form statement fees are not 460 (Recipient Committee Campaign Statement). If a bank account counted toward the$2,000 threshold. has not already been established, the candidate must also establish a s „ campaign bank account. Exception: A candidate for a county central committee of a qualified political party who receives contributions of less than $2,000 and who makes expenditures of less than $2,000 is not required to file 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 subject to the Act's campaign reporting requirements. arts , ' o �i � > "or i A candidate who plans to raise or spend $2,000 or more in a calendar year, including the candidate's personal funds, must: Fair Political Practices Commission Chapter 1.2 Campaign Manual 2 advice @fppc.ca.gov April 2016 • File the Form 501 (Candidate Intention Statement). • File the Form 410 (Statement of Organization). • Establish a campaign bank account. A candidate or officeholder who would like to use leftover campaign funds from a previous election must redesignate or transfer the funds before they become "surplus funds." (See Chapters 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 must also be filed: • 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 single source, the Form 497 must be filed within 24 hours. • Form 460 (Recipient Committee Campaign Statement). The Form 460 contains an overview of the committee's activity .• during a specified period. It is used to file semi-annual and preelection statements. Committees Controlled by Two or More Candidates If two or more candidates form one committee to support their candidacies for elective office, such as a slate of candidates running for school board or city council, they must: • Each file the Form 501(Candidate Intention Statement). • File one Form 410 (Statement of Organization). • Establish one bank account for the committee (each candidate must deposit all contributions and make all expenditures from this bank account). Committees controlled by two or more candidates file only one Form 460 (Recipient Committee Campaign Statement) to disclose the committee's activity each time the statement is due. Fair Political Practices Commission Chapter 1.3 Campaign Manual 2 advice @fppc.ca.gov April 2016 �#...' a _Y ;h #• a "; v mm warm' Rule Under the Act, a candidate or officeholder must establish one controlled committee with one bank account for each election. All contributions must be deposited in and all expenditures must be A candidate or officeholder may made from the campaign bank account. The Act's one committee/ only have one committee one bank account rule for candidates and elected officeholders gives with one bank account per clear disclosure of the candidate or elected officeholder's campaign election. finances and ensures compliance with applicable local contribution ., . limits, if any. A committee set up by the candidate or officeholder for his or her election is the candidate's controlled committee. A candidate controls a committee if he or she has a significant influence on the actions or decisions of the committee or acts jointly with the committee in connection with its expenditures. Under the one committee/one bank account provisions of the Act, a candidate or officeholder who controls a committee for his or her election may not at the same time control a general purpose committee, such as an "Improve River City" committee. In limited circumstances, exceptions to the one committee/one bank account rule exist to permit a local candidate or officeholder to control a ballot measure committee, legal defense fund, or officeholder expense committee (if provided by local ordinance). Candidate A"primarily formed committee" is formed to support or oppose a single candidate or a group of candidates all being voted on in the same election but is not controlled by the candidate(s) who is being A"primarily supported. Primarily formed committees: formed candidate committee" is a committee • Must file Form 410 (Statement of Organization). not associated with the candidate whose main activity is making • Should establish a campaign bank account. independent expenditures for the candidate or against As discussed in detail later in the manual, once a committee has their opponent. raised or spent $2,000 or more, the following reports must also be filed: Fair Political Practices Commission Chapter 1 4 Campaign Manual 2 advice©fppc.ca.goy April 2016 t.. .,1111■ • Form 497 (24-hour Contribution Report). Within 90 days before the election, including the date of the election, if a primarily A candidate's own .. formed committee makes a contribution(s) of$1,000 or more committee for election r.. to a candidate or ballot measure committee or receives a not a "primarily formed" committee although it contribution(s) of$1,000 or more from a single source, the Form supports one candidate—it 497 must be filed within 24 hours. is a "candidate controlled" committee. • 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 expenditure of$1,000 or more, the Form 496 must be filed within 24 hours. The Form 462 (Verification of Independent Expenditures) must also be filed. See Chapter 10 for additional information on the Form 462. • Form 460 (Recipient Committee Campaign Statement). The Form 460 contains an overview of the committee's activity during a specified period. It is used to file semi-annual and preelection statements. A primarily formed committee is not required to file the Form 501. A primarily formed committee with little or no activity may be eligible to file the Form 450 or Form 425 instead of the Form 460. (See Chapter 8.) 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 account. The account may be established at any financial institution (i.e, bank, credit union) located in California. A candidate's personal funds used to pay the filing fee or the ballot statement fee do not count toward the $2,000 committee qualification threshold. Under the Act's one bank account provisions discussed above, a candidate or officeholder may only have one controlled committee with one bank account per election. Candidates running for one office while holding another may establish a separate campaign bank account for each office, but may not have more than one bank account per office per election. Fair Political Practices Commission Chapter 1.5 Campaign Manual 2 advice @fppc.ca.gov April 2016 Although primarily formed committees are not required to establish The Political Reform a campaign bank account, it is recommended that they do so. Act does not require Pre-numbered and pre-printed checks with the committee's name a federal tax ID number. are useful in meeting the recordkeeping requirements described in However, most banks will Chapter 2. require one in order to open p a campaign bank account. A tax ID number may be Campaign contributions may not be commingled with any individual's obtained on the IRS website, www.irs.gov. personal funds. All contributions must be deposited in, and expenditures must be made from, the campaign bank account. Except as noted below, candidates must first deposit personal funds to be used for the campaign in the campaign bank account before making campaign expenditures, even if the candidate does not expect to be Campaign funds must be kept separate from reimbursed. personal funds. Exceptions: • Candidates may use their personal funds to pay a filing fee or a ballot statement fee without first depositing the funds into the campaign bank account. • An officeholder may use personal funds to pay officeholder expenses. • A candidate may contract with a vendor or collecting agent to collect contributions prior to promptly transferring the funds to the candidate's campaign bank 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 Commission Chapter 1 6 Campaign Manual 2 advice @fppc.ca.gov April 2016 Before soliciting or receiving any contributions or making expenditures from personal funds, a candidate must file the Form 501 with the filing officer who will receive the candidate's original campaign statements (i.e., city clerk or county elections). Judicial candidates file the Form 501 with the Secretary of State. A new Form 501 must be filed for each election, even if the candidate is running for reelection to the same office. The Form 501 is considered filed on the date it is postmarked or hand-delivered. CANDIDATE INTENTION STATEMENT Candidate Intention Statement Type or Print in Ink. Date stamp CALIFORNIA 501 FORM Check One For Official Use Only ©Initial ❑Amendment (Explain) Candidate Information: NAME OF CANDIDATE (Last,First,Mioole Initial) DAYTIME TELEPHONE NUMBER FAX NUMBER(optional) E-MAIL(optional) Cole,Rayna ( 707)555-1234 ( 707)555-1235 rcole©gmail.com STREET ADDRESS CITY STATE ZIP CODE 1212 Fourth Avenue Oakmont CA 95443 OFFICE SOUGHT(POSITION TITLE) AGENCY NAME DISTRICT NUMBER,if applicable. li]NON-PARTISAN +m City Council City of Oakmont 1 PARTY OFFICE JURISDICTION ❑State(Complete Part 2.1 20XX ®City ❑County ❑Multi-County: (Name of Multi-County Jurisdiction) (Year of Election) State Candidate Expenditure Limit Statement: (CaIPERS and CaISTRS candidates,judges,judicial candidates,and candidates for local offices do not complete Part 2.) Primary/general election Special/runoff election (Year or Election) (Year or Election) (Check one box) ❑I accept the voluntary expenditure ceiling for the election stated above. ❑I do not accept the voluntary expenditure ceiling for the election stated above. Amendment: 0 I did not exceed the expenditure ceiling in the primary or special election held on._J—J—and I accept the voluntary expenditure ceiling for the general or special run-off election. (Mark if applicable) °Verification:❑ On______/_/_, I contributed personal funds in excess of the expenditure ceiling for the election stated above. I certify under penalty of perjury under the laws of the State of California that the foregoing is true and correct. Executed on [Date Required] Signature [Signature Required] (month,day,year) (Candidate) FPPC Form 501 LApri1/2011 FPPC Toll-Free Helpline:866/ASK-FPPC(866/275-3772) Fair Political Practices Commission Chapter 1 7 Campaign Manual 2 advice @fppc.ca.gov April 2016 Completing the Form 501 O Type of Statement Check the appropriate box to indicate the type of statement being filed: • Initial: If this is the first Form 501 being filed for the election. • Amendment: If any changes occur on a previously filed Form 501 (e.g., a change of address). Provide a brief explanation of the change(s). O Candidate Information Provide the candidate's full name, street address (a business address may be used), and a daytime telephone number. A fax number and e-mail address may also be provided. Office Sought Enter the title of the office sought (e.g., County Supervisor). Agency Name Enter the name of the agency (e.g., County of Riverside). District Number Enter the district number or letter, if applicable. Office Jurisdiction Check the appropriate box to indicate the jurisdiction of the office being sought: • Multi-County: Candidates seeking an elective office where the jurisdiction of the agency contains parts of two or more counties (e.g., water district). Enter the name of the multi-county jurisdiction. • County: Candidates seeking an elective county office (including superior court judge and most school board members). • City: Candidates seeking an elective city office. Fair Political Practices Commission Chapter 1.8 Campaign Manual 2 advice @fppc.ca.gov April 2016 fi Year of Election Enter the year of the election for the office being sought. Month and day are not required. O 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 state office. O Verification The Form 501 must be signed by the candidate. It is not considered filed if it is not signed. 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 raised or spent. Must I file the Form 501? No. As long as your only expenditures are for the ballot qualification fees and no money will be raised, the Form 501 is not required. C. Am I required to file the Form 501 when I run for reelection to the same office? Yes. If you seek reelection to the same office, you are required to file an "Initial" Form 501 prior to raising or spending any money for the new election. sow Fair Political Practices Commission Chapter 1.9 Campaign Manual 2 advice @fppc.ca.gov April 2016 a k: D. Am I required to file a document to withdraw as a candidate? Nei The FPPC does not administer the laws that govern what candidates must do to appear on a ballot or to remove their names from a ballot. Contact your local filing officer. E. Am I required to file the Form 501 if I will set up a committee to fight my recall? No. An officeholder who is the target of a recall is not required to file the Form 501. F. Am I required to file the Form 501 if I am a replacement candidate in a recall election? Yes. Replacement candidates must file the Form 501. 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 vool the Form 501? Yes. Each district/seat on the city council or the community college board of trustees is considered a specific office. Note: The "district number" is not required for candidates running for mayor or city council at large. H. I have completed the process to be an official write-in candidate. Do I have any reporting obligations? Yes. You have the same reporting obligations as any other candidate. Fair Political Practices Commission Chapter 1. 10 Campaign Manual 2 advice @fppc.ca.gov April 2016 a ':* Statement- Short Form) The Form 470 must be filed by a candidate or officeholder who does not anticipate raising or spending $2,000 or more in a calendar year. Payments from the candidate's personal funds used to pay filing or ballot statement fees do not count toward the $2,000 committee qualification threshold. .' If the Form 470 is filed _. The Form 470 may not be used if the candidate or officeholder has and the candidate then an existing controlled committee established for a past election, future raises or spends$2,000 or election, or ballot measure (including recalls). more in dat calendar h the candidate must file the e Form 470 Supplement,the There are special exceptions, discussed below, that apply to judges Form 410, and begin filing the Form 460. and unpaid elected officeholders (officeholders who receive salaries of less than $200 per month). When to File the Form 470 in Connection With an Election Ex 1.1- Non-incumbent Non-Incumbent Candidates judicial candidate Janice Chambers is listed on the November ballot. She `" Candidates on ballot in first six months of the calendar year. The does not intend to raise or Form 470 may be filed with the declaration of candidacy but must be spend $2,000 in connection filed no later than the deadline for the first preelection statement. with her election. June p 30, she had d received no contributions and her only Candidates on ballot in last six months of the calendar year. If the expenditures were for the filing and ballot statement candidate receives contributions or makes expenditures: fees paid for with her personal funds. Janice is • Before June 30: Form 470 must be filed by July 31. required to file Form 470 by the first preelection filing deadline. • After June 30: Form 470 may be filed with the declaration of candidacy but must be filed no later than the deadline for the first preelection statement. Candidates running in an election in the first three months of the year may be required to file the Form 470 in October, November, or December of the previous non-election year, as well as in the election year. Candidates should review the applicable filing schedule. Fair Political Practices Commission Chapter 1 11 Campaign Manual 2 advice @fppc.ca.gov April 2016 Officeholders on the Ballot Ex 1.2-A city council If an officeholder will be listed on a ballot during the first six months election will be held *titi of the calendar year, the Form 470 (covering the year of the election) in February. The first may be filed with the declaration of candidacy but must be filed no preelection statement for this election is due in later than the filing deadline for the first preelection statement required December of the previous in connection with the election. If the election will be held during the year. A candidate that does not meet the$2,000 last six months of the calendar year, the Form 470 must be filed no committee threshold must later than July 31. file the Form 470 by the first preelection statement due date. The second Judges and Unpaid Elected Officeholders on the Ballot preelection statement is due in January. If the candidate During an election year, the deadline for filing the Form 470 will will not raise or spend $2,000 or more during the depend on the date of the election. Judges and unpaid officeholders year of the election, another running in an election during the first six months of the year may file Form 470 covering the entire the Form 470 (covering the year of the election) with the declaration of must calendar be year by the a and mst be filed by the second candidacy but must be filed no later than the filing deadline for the first preelection statement preelection statement required in connection with the election. deadline since the Form 470 filed in December of the previous year covered the If the election will be held during the last six months of the year, period ending December 31 the Form 470 must be filed by July 31 if any funds were raised or I of that calendar year. spent (other than the candidate's personal funds for a filing or ballot \ ,, 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-Judge Mercado is be filed with the declaration of candidacy but must be filed no later listed on the November ballot and anticipates raising than the filing deadline for the first preelection statement required in and spending less than connection with the election. $2,000 for his reelection. By June 30, he had received no contributions since January Officeholders and Judges Not on a Ballot 1 and his only expenditures were for the filing and ballot See Chapter 11 for the reporting obligations of officeholders and statement fees paid for with judges who are not listed on the ballot. his personal funds. The judge is not required to file by the July 31 semi-annual Where to File Form 470 filing deadline, but must filea Form 470 by the first did.t . er . ....a,. � ,� ..,; ,. ., preelection filing deadline. Judges Secretary of State Original and one copy County of Domicile One copy Multi-County Offices County with largest number of Original and one copy registered voters (Local agencies with jurisdiction in more than one county) County of Domicile, if different One copy County offices County Elections Office Original and one copy City offices City Clerk Original and one copy Fair Political Practices Commission Chapter 1. 12 Campaign Manual 2 advice @fppc.ca.gov April 2016 Officeholder and Candidate Date Stamp CALIFORNIA A 7O Campaign Statement- FORM 'F Short Form ate of election if applicable: ❑ Amendment(Explain Below) For Official Use Only yam„ (Month,Day,Year) 6/6/XX 0 XX 1. Statement Covers Calendar Year 20 . Officeholder or Candidate Information 0 Office Sought or Held NAME OF OFFICEHOLDER OR CANDIDATE OFFICE SOUGHT OR HELD Rayna Cole City Council STREET ADDRESS JURISDICTION(LOCATION) DISTRICT NUMBER (IF APPLICABLE) 1212 Fourth Avenue City of Oakmont 1 CITY STATE ZIP CODE Oakmont CA 95443 AREA CODE/DAYTIME PHONE NUMBER OPTIONAL.FAX/E-MAIL ADDRESS 707-555-1234 707-555-1235/rcole @gmail.com 4 Committee Information List all committees of which you have knowledge that are primarily formed to receive contributions or to make expenditures on behalf of your candidacy. COMMITTEE NAME AND I.D.NUMBER COMMITTEE ADDRESS NAME OF TREASURER Friends Supporting Rayna Cole for City 1618 C Street Gabriel Stoll Council 20XX Oakmont,CA 95443 ID Number 1533XX 0 Verification I declare under penalty of perjury that to the best of my knowledge I anticipate that I will receive less than$2,000 and that I will spend less than$2,000 during the calendar year and that I have used all reasonable diligence in preparing this statement. I certify under penalty of perjury under the laws of the State of California that the foregoing is true and correct. Executed on [Date Required] By [Signature Required] DATE SIGNATURE OF OFFICEHOLDER OR CANDIDATE FPPC Form 470/470 Supplement(Jan/2016) FPPC Advice:adviceIfppc.ca.gov(866/275-3772) www.fppc.ca.gov Completing the Form 470 O Date of Election If the candidate or officeholder is running in an election during the calendar year, indicate the month, day, and year of the election. O Period Covered The period covered is always the calendar year. O Officeholder or Candidate Information Provide the candidate/officeholder's full name, street address (a business address may be used), and a daytime telephone number. A ',ft.-fax number and e-mail address may also be provided. Fair Political Practices Commission Chapter 1. 13 Campaign Manual 2 advice @fppc.ca.gov April 2016 O Office Sought or Held Indicate the office being sought or held and provide the location and district number of the office, if applicable. O Committee Information Ex 1.4- Rayna Cole's A candidate or officeholder who is aware of a primarily formed neighbors formed the committee that is receiving contributions and making expenditures Friends Supporting Rayna Cole for City Council 20XX on behalf of his or her candidacy must disclose the primarily formed committee. Ms. Cole is committee's name, identification number, address, and the name of aware of the committee but has no involvement with the treasurer. its day-to-day activities. Ms. Cole must disclose the 0 Verification committee's information on her Form 470. The Form 470 must be signed by the candidate/officeholder. It is not considered filed if it is not signed. Answering Your Form 470 Questions A. What reporting period does the Form 470 cover? The Form 470 is filed once each calendar year and covers the entire calendar year. When you file the Form 470 covering the year of the election with your declaration of candidacy, or on or before the deadline for filing your first preelection statement, you do not need to file any additional campaign statements as long as you do not raise or spend $2,000 or more during the calendar year. B. If I am a non-incumbent candidate, am I required to file the 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 filing or ballot statement fee? No. A Form 470 is not required. However, once you assume office, a Form 470 may be required. Fair Political Practices Commission Chapter 1 14 Campaign Manual 2 advice @fppc.ca.gov April 2016 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 to file Form 470? You must file Form 470 in November of the preceding year (the deadline for filing your first preelection statement in connection with the January election). In addition, if your second preelection statement is due in January, another Form 470 must be filed because a Form 470 is required for each calendar year. The first Form 470 covers the calendar year preceding the 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 in November. I filed a Candidate Intention Statement (Form 501) and Statement of Organization (Form 410) to form a committee on May 1, but I did not qualify as a committee by June 30th. Should I file the Form 470 or the Form 460 by the July 31 semi-annual due date? Because you intend to raise $2,000 or more in the calendar year, you should file the Form 460. This allows you to avoid the requirement to file the Form 470 Supplement within 48 hours of raising or spending $2,000 or more. But, it is permissible to file the Form 470 since the committee qualification threshold was not met by June 30th. Fair Political Practices Commission Chapter 1. 15 Campaign Manual 2 advice @fppc.ca.gov April 2016 ■ E. I am a city council member and I closed my campaign committee in March. May I file the Form 470 for the statement due July 31? No. You may not file the Form 470 if you had an open committee at any time during the calendar year or intend to have one later in the year. You must continue filing the Form 460 as an officeholder for the remainder of the calendar year. The Form 470 may be filed the following calendar year if you do not have, nor intend to have, a committee for that entire calendar year. F. I am in a June election this year and filed a Form 470 for last year because I started raising money in December. Am I required to file a 470 Supplement if I receive contributions totaling more than $2,000 in January? No. The Form 470 Supplement is only required if you file the Form 470 and subsequently raise or spend $2,000 in the same calendar year. Since you filed the Form 470 last year, but did not meet the $2,000 committee qualification threshold until the following calendar year, you are not required to file the Form 470 Supplement. You must file the Form 410 (Statement of Organization) and begin filing the other applicable campaign reports (e.g., Form 460, Form 497). Form 470 Supplement If a candidate files a Form 470 covering a calendar year in which the candidate is running in an election (i.e., with the declaration of candidacy, in lieu of a first preelection statement, or for the June 30 semi-annual filing) and later receives contributions totaling $2,000 or more, or makes expenditures totaling $2,000 or more, the candidate must file a Form 470 Supplement. Fair Political Practices Commission Chapter 1. 16 Campaign Manual 2 advice @fppc.ca.gov April 2016 rmin When and Where to File the Form 470 Supplement ; The Form 470 Supplement must be filed within 48 hours of receiving or spending $2,000 or more. The notification is sent to: • Secretary of State's Office; • Each candidate seeking the same office; and • City or county clerk, or county registrar of voters, if the candidate is running for a city or county office. The notification must be sent by guaranteed overnight delivery, personal delivery, fax, or email. The candidate must also file a Statement of Organization (Form 410) and begin filing the Recipient Committee Campaign Statement (Form 460). The 24-hour Contribution Report (Form 497) may also be required. Niue Fair Political Practices Commission Chapter 1. 17 Campaign Manual 2 advice @fppc.ca.gov April 2016 Officeholder and Candidate Date Stamp CALIFORNIA Campaign Statement- 0 Amendment(Explain Below) FORM 470 Form 470 Supplement For Official Use Only SEE INSTRUCTIONS ON REVERSE This form is written notification that the officeholder/candidate listed below has received contributions totaling$2,000 or more has made expenditures of$2,000 or more during the calendar year. .Officeholder or Candidate Information NAME OF OFFICEHOLDER OR CANDIDATE Rayna Cole STREET ADDRESS 1212 Fourth Avenue CITY STATE ZIP CODE Oakmont CA 95443 AREA CODE/DAYTIME PHONE NUMBER OPTIONAL.FAXI E-MAIL ADDRESS 707-555-1234 707-555-1235/rcole @gmail.com .Office Sought OFFICE SOUGHT DISTRICT NUMBER (IF APPLICABLE) Oakmont City Council 1 DATE OF ELECTION(MONTH,DAY,YEAR) 6/6/XX . Date Contributions Totaling$2,000 or More Were Received or Date Expenditures of$2,000 or More Were Made 4/1/XX (MONTH,DAY,YEAR) FPPC Form 470/470 Supplement(Jan/2016) FPPC Advice:adviceigfppc.ca.gov(866/275-3772) www.fppc.ca.gov Completing the Form 470 Supplement 0 Officeholder or Candidate Information Provide the candidate/officeholder's full name, street address (a business address may be used), and a daytime telephone number. A fax number and e-mail address may also be provided. O Office Sought Indicate the office being sought, the date of the election, and the district number, if applicable. O 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 Commission Chapter 1. 18 Campaign Manual 2 advice @fppc.ca.gov April 2016 iv-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 qualifies as a recipient committee and must file Form 410. The Form 410 identifies the name of the committee and provides the public with information regarding the committee's purpose and its officers. Annual Committee Fees All committees that file a Form 410 must pay a $50 fee to the Secretary of State no later than 15 days after the Form 410 is filed. 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 penalty). Failure to pay the fine will result in a referral to the FPPC's 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 the current year and file the terminating Form 410 with the Secretary of State on or before January 31 of the next year. There is no provision for extension of the deadline and fee payment. When and Where to File the Form 410 Ex 1.5-On February 15, a candidate for mayor opened a campaign bank account File the original and one copy of the Form 410 with the Secretary of with a personal loan of State within 10 days of raising or spending $2,000 or more. $2,500. By February 25,the Form 410 must be sent to Send the Form 410 to: the Secretary of State and a copy to the city clerk. Secretary of State Political Reform Division 1500 11th Street, Suite 495 Sacramento, CA 95814 Fair Political Practices Commission Chapter 1 19 Campaign Manual 2 advice @fppc.ca.gov April 2016 In addition, candidates for local office and committees primarily formed to support or oppose local candidates must file a copy of the Form Ex 1.6-toe is seeking reelection to the city 410 with the local filing officer (i.e., city clerk or county elections) with council. He wishes to use whom the committee will file its original campaign statements. the same committee and bank account. In order to do so,Joe files a Form 410, The Form 410 may be filed prior to raising or spending $2,000, checking the amendment but then must be amended within 10 days of reaching the $2,000 box and indice the yeaa r of the eleccintioo n. After threshold to disclose the date the committee qualified. filing the Form 501 for the new election,Joe is free to raise and deposit campaign 24-Hour Deadline for the Form 410 contributions into the bank account. A committee that qualifies during the last 16 days before the election must file Form 410 within 24 hours of qualifying. The Form 410 must be provided to the filing officer with whom the committee will file its Ex 1.7-A group of neighbors original campaign disclosure statements (e.g., Form 460) by fax, joined forces to help elect a candidate for mayor. On guaranteed overnight delivery, or personal delivery. In addition, an March 1,the group received original Form 410 must be filed with the Secretary of State within 10 10 checks of$200 each. days of qualifying as a committee (regular mail may be used). Because they qualified as a committee on that date, they must mail or personally Committee ID Number deliver a Form 410 to the Secretary of State and a copy to the city clerk no later than ' Upon receipt of the Form 410, the Secretary of State's office will March 11. assign the committee an identification number. This number is used on all reporting forms. After filing the Form 410, committees may go to the Cal-Access section of the Secretary of State's website to obtain Ex 1.8- Fourteen days before the committee identification number. Contact the Secretary of State's a local election, a candidate office at (916) 653-6224 with any other questions about obtaining a who had previously filed a Form 470 received a committee identification number. contribution of$1,250, bringing the cumulative contributions received to Amending the Form 410 date to$2,150. Because the candidate has now exceeded When any information on the Form 410 changes, an amendment must the$2,000 committee be filed within 10 days of the change. This is especially important if qualification threshold,the candidate must file the Form the committee has a new treasurer or principal officer(s) since the 410 with the local elections individuals listed on the most recently filed Form 410 are liable for the official within 24 hours. The Form 410 must also be committee's activity. filed within 10 days with the Secretary of State. The Form 470 Supplement must be filed within 48 hours as (..described above. Fair Political Practices Commission Chapter 1.20 Campaign Manual 2 advice @fppc.ca.gov April 2016 24-Hour Deadline for Amendments to the Form 410 Changes to important information in the last 16 days before the election require a committee to file an amendment within 24 hours. If, during the last 16 days before the election, any of the following changes occur, the committee must file an amended Form 410 within 24 hours with the filing officer with whom the committee files its original campaign statements: • The name of the committee. • The treasurer or other principal officers. • Any candidate who controls the committee. • Any committee with which the committee acts jointly. The amendment provided to the filing officer with whom the committee files its original campaign statements must be delivered by personal delivery, guaranteed overnight delivery, fax, or online transmission (if online filing is available). The originally signed Form 410 amendment must be filed with Secretary of State within 10 days (regular mail may be used). Nftw- Fair Political Practices Commission Chapter 1.21 Campaign Manual 2 advice @fppc.ca.gov April 2016 Statement of Organization Date Stamp CALIFORNIA 40 Recipient - • mittee FORM Statement Ty• A Initial ❑ Amendment ❑ Termination—See Part 5 For Official Use Only e Not yet qualified❑ or List I.D.number: List I.D.number: N # 09 04 20XX -,--/ Date qualified as committee Date qualified as committee Date of Termination (If ppl cable) em; Tv a ,R q- ,' Tai f 7 NAME OF COMMITTEE NAME OF TREASURER Manuel Alvarez for Mayor 20XX Madeline Richards STREET ADDRESS INO P D.BOX) STREET ADDRESS(NO PO.BOX) 225 Presley Street 225 Presley Street CITY STATE ZIP CODE AREA CODE/PHONE CITY STATE ZIP CODE AREA COOE/PHONE Oakmont CA 95443 (707)555-6868 Oakmont CA 95443 (707)555-6868 MAILING ADDRESS IIF OIFFERENTI NAME OF ASSISTANT TREASURER,IF ANY P.O. Box 1744, Oakmont, CA 95434 Manuel Alvarez FAX/E-MAIL ADDRESS STREET ADDRESS ISO P.O.BOX) 707-555-6869/ mrichards @oakmontmail.com 225 Presley Street COUNTY OF DOMICILE JURISDICTION WHERE COMMITTEE IS ACTIVE CITY STATE ZIP CODE AREA CODE/PHONE San Marino San Marino Oakmont CA 95443 (707)555-6868 NAME OF PRINCIPAL OFFICERIS) N/A STREET ADDRESS(NO P.O.BOA) Attach additional information on appropriately labeled continuation sheets. CITY STATE ZIP CODE AREA CODE/PHONE I have used all reasonable diligence in preparing this statement 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 correct. Executed on [Date Required] By [Signature Required] DATE SIGNATURE OF TREASURER OR ASSISTANT TREASURER Executed on [Date Required] By [Signature Required] .NINO DATE SIGNATURE OF CONTROLLING OFFICEHOLDER,CANDIDATE,OR STATE MEASURE PROPONENT Executed on By DATE SIGNATURE OF CONTROLLING OFFICEHOLDER,CANDIDATE,OR STATE MEASURE PROPONENT Executed on By DATE SIGNATURE OF CONTROLLING OFFICEHOLDER,CANDIDATE,OR STATE MEASURE PROPONENT FPPC Form 410(Dec/2012 FPPC Advice:advice @fppc.ca.gov(866/275-3772) www.fppc.ca.gov Completing the Form 410 0 Statement Type Check the "Initial" box if this is the first filing and indicate the date on which the committee met the $2,000 threshold or check the "Not Yet Qualified" box. If the "Not Yet Qualified" box is checked, an amended Form 410 must be filed within 10 days of reaching or exceeding the $2,000 threshold to provide the date the committee qualified. Check the "Amendment" box to amend information on an existing Form 410 (e.g., to report the date the committee qualified as a committee). ' E Fair Political Practices Commission Chapter 1 22 Campaign Manual 2 advice @fppc.ca.gov April 2016 0 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 office sought, and the year of the election. Committees established by an officeholder to defend against a recall attempt must include the term "recall" in the committee name. Primarily Formed Committees. A committee primarily formed to support or oppose a candidate(s) must include the last name of each candidate, the office sought, the year of the election, and must state 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 Provide the committee's street address and mailing address. A post office box may be used as a mailing address. The committee may have more than one mailing address. The Secretary of 9 State's office may reject the filing of a Form Committee Fax/E-mail Address 410 if the committee's e-mail address is not included. Provide the committee's fax number and e-mail address. The e-mail address is required. County of Domicile and Jurisdiction Where Committee is Active Indicate the county in which the committee is located and the county in which the committee is active. These may be different. 0 Treasurer and Other Principal Officers 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, Fair Political Practices Commission Chapter 1.23 Campaign Manual 2 advice @fppc.ca.gov April 2016 and telephone number of the candidate. See Chapter 2 for information about A primarily formed committee must also list the name of the principal the responsibilities of a officer(s) and the principal officer's street address. If no individual committee treasurer.The other than the treasurer is a principal officer, the treasurer must be of commit ee treasurers includes a list of committee treasurers that identified as both the treasurer and the principal officer. A principal have been fined by the FPPC officer is an individual that is responsible for the following types of two or more times. activities: • Authorizing the content of committee communications. • Authorizing expenditures. • Determining the committee's campaign strategy. A committee may have several principal officers. If there are more than three, a committee need only identify on the Form 410 three individuals serving as principal officers. 0 Verification The treasurer or assistant treasurer must complete the verification. If the committee is controlled by a candidate, the candidate must also sign the verification. The Form 410 is not considered filed if it is not 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 must sign the verification. If more than three candidates control the committee, one of the candidates may sign on behalf of all controlling candidates. Bank Account Report the name and address of the financial institution where the committee's campaign bank account is located, as well as the campaign bank account number. If a bank account has not been opened at the time of filing an "Initial" Form 410, amend the Form 410 within ten days of opening the bank account to provide this information. wig Fair Political Practices Commission Chapter 1.24 Campaign Manual 2 advice@fppc.ca.gov April 2016 VIIIIMIIIIIIIIIII yi 53 y,Y 7 4 9e i1: **Wx r e * ''�` Controlled Committee e• List the name of each controlling officeholder,candidate,or state measure proponent. If candidate or officeholder controlled,also list the elective office sought or held,and district number,if any,and the year of the election. • List the political party with which each officeholder or candidate is affiliated or check"nonpartisan." • If this committee acts jointly with another controlled committee,list the name and identification number of the other controlled committee. ELECTIVE OFFICE SOUGHT OR HELD NAME OF CANDIDATE/OFFICEHOLDER/STATE MEASURE PROPONENT /INCLUDE DISTRICT NUMBER IF APPLICABLE) YEAR OF ELECTION PARTY ®Nonpartisan Manuel Alvarez Oakmont City Council, District 1 20XX ❑Nonpartisan 0 Type of Committee Controlled Committee Candidate controlled committees must complete this section. A candidate or officeholder's own committee for election to office is his or her "controlled committee." Provide the name of the candidate, office sought (include district number, if applicable), year of the election and, since all local elections in California are non-partisan, check the "Non-Partisan" box in the "Party" column. If two or more candidates form one committee to support their candidacies for elective office, this information must be completed for each candidate. Primarily Formed Committee Complete this section for a committee that is not controlled by a candidate or officeholder whose principal activity is raising or spending money to make independent expenditures supporting or opposing a specific candidate or a group of specific candidates all being voted 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 affiliation of the sponsor. Individuals do not sponsor committees. ...- I Fair Political Practices Commission Chapter 1.25 Campaign Manual 2 advice @fppc.ca.gov April 2016 An entity sponsors a committee if any of the following criteria apply: • The committee receives 80% or more of its contributions from the entity or its members, officers, employees, or shareholders. • The entity collects contributions for the committee through payroll deductions or dues from its members, officers, or 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. Answering Your Questions A. Must we wait until $2,000 or more is received to file a Form 410? Nit Oi No. You may file a Form 410 prior to committee qualification. Check the "Not Yet Qualified" box. Once you have reached the $2,000 threshold, file an amendment to report the date the committee qualified. B. May our committee use a mail receiving and forwarding service as the committee's street address on the Form 410? No. Either the committee's street address or the treasurer's street address (home or business) must be provided. A post office box may be used as a mailing address. C. As a candidate, may I be the designated treasurer on the Form 410? Yes. You may be the treasurer or assistant treasurer. Fair Political Practices Commission Chapter 1.26 Campaign Manual 2 advice @fppc.ca.gov April 2016 D. May more than one candidate control a single committee to run for office? Yes. Each candidate should file a Form 501 prior to raising or spending any money. For both the Form 410 and Form 460, each candidate must sign the verification, in addition to the treasurer or assistant treasurer. If the committee is controlled by more than three candidates, one candidate may sign on behalf of the other candidates. 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 may be reported on Schedule C as nonmonetary contributions (itemize purchases of$100 or more). If you wish to be reimbursed by the committee, you may report the amount N.. 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 bank account; personal funds must be deposited into the account before making expenditures. F. I am an officeholder and the target of a recall election. I have formed a separate committee to oppose the recall. On the Form 410, what sections do I complete under Part 4 — Type of Committee? You should complete both the Controlled Committee and Primarily Formed Ballot Measure Committee sections. Be sure to include the word "recall" in the name of the committee. Fair Political Practices Commission Chapter 1.27 Campaign Manual 2 advice @fppc.ca.gov April 2016 G. I am running as a replacement candidate on a recall ballot. On the Form 410, what sections do I complete under Part 4—Type of Committee? You should complete the Controlled Committee section. Fair Political Practices Commission Chapter 1 28 Campaign Manual 2 advice @fppc.ca.gov April 2016 -The following Government Code sections and Title 2 regulations provide authority for the information in this chapter: Government Code Sections 81004 Reports and Statements; Perjury; Verification. 81004.5 Reports and Statements; Amendments. 81007 Mailing of Report or Statement. 82007 Candidate. 82013 Committee. 82016 Controlled Committee. 82025 Expenditure. 82044 Payment. 82047.5 Primarily Formed Committee. 82048.7 Sponsored Committee. 84101 Statement of Organization; Filing. 84102 Statement of Organization; Contents. 84103 Statement of Organization; Amendments. 84106 Sponsored Committee; Identification. *""' 84206 Candidates Who Receive or Spend Less than $2,000. 84207 County Central Committee Candidates Who Receive or Spend Less Than $2,000. 84215 Campaign Reports and Statements; Where to File. 85200 Statement of Intention to be a Candidate. 85201 Campaign Bank Account. 87201 Candidates (Statement of Economic Interests). Title 2 Regulations 18402 Committee Name. 18406 Short Form for Candidates or Officeholders Who Receive and Spend Less than $2,000 in a Calendar Year. 18419 Sponsored Committees. 18430 Committee Controlled by More Than One Candidate. 18520 Statement of Intention to Be a Candidate. 18521 Establishment of Separate Controlled Committee for Each Campaign Account. 18531.5 Recall Elections. Fair Political Practices Commission Chapter 1 29 Campaign Manual 2 advice @fppc.ca.gov April 2016 * k FINANCES/RECORDKEEPING One of the fundamental purposes of the Political Reform Act (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 committee treasurer, assistant treasurer, or principal officer must know and practice the finance and recordkeeping requirements and responsibilities discussed in this chapter. • t • 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 the duties, the treasurer must understand the campaign finance laws and his or her responsibilities under the Act. The candidate controlling the committee may be the treasurer or assistant treasurer for his or her own committee. No individual should accept the position of a committee treasurer as a mere figurehead. Contributions may not be accepted and expenditures may not be made if the treasurer's post is 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 the committee's Statement of Organization (Form 410) amended. The individual listed on the most recent Form 410 filed with the Secretary of State continues to be liable until an amendment is filed to designate a new treasurer. The committee treasurer or assistant treasurer must sign and verify all reports and statements filed. The verification is signed under penalty of perjury and indicates that: • The signer has used all reasonable diligence in preparing the statement; and • To the best of his or her knowledge, the statement is both true and complete. Fair Political Practices Commission Chapter 2. 1 Campaign Manual 2 advice @fppc.ca.gov April 2016 The signer is legally responsible for the accuracy and completeness of the document, even if it is prepared by a third party, including a `r•e professional accountant. An unsigned statement is considered "not filed" and is subject to late fines. Treasurer Responsibilities A committee treasurer is required to: • Establish a system of recordkeeping sufficient to ensure that contributions and expenditures are recorded promptly and accurately in compliance with the Act's recordkeeping 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 the Act's requirements are met regarding receipt, expenditure, and reporting of campaign funds. New • Prepare campaign statements personally or carefully review the statements and underlying records prepared by others. Correct any inaccuracies or omissions, and inquire about any Reconciling the • committees bank information that would cause a person of reasonable prudence statement with the to question the accuracy of the campaign statements. Among committee's records the circumstances that might give rise to an inquiry regarding regularly will ensure accuracy and make a contribution are: the size of the contribution; the reported completing the campaign source; the likelihood of that source making a contribution of forms easier. that size; the manner in which the contribution is recorded in the campaign records; and all other circumstances surrounding receipt of the contribution. Principal Officer(s) A primarily formed committee must designate a principal officer(s) on the Statement of Organization (Form 410). The principal officer is 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 Fair Political Practices Commission Chapter 2.2 Campaign Manual 2 advice @fppc.ca.gov April 2016 t A' the political activity of the committee as described in Chapter 1, the treasurer must be identified as both the treasurer and the principal officer. , `. B. 61. : h i e r. et .; et. A candidate or officeholder is required to: • Carefully review the campaign statements prepared for filing by the committee and ensure that the statements are properly filed. • 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 raise the treasurer's performance to required standards if the candidate or officeholder knows, or has reason to know, that the treasurer is not exercising all reasonable diligence in the performance of his or her duties. • 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. Educa ion The FPPC provides educational seminars 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 e-mailing questions to advice @fppc.ca.gov. ved Fair Political Practices Commission Chapter 2. 3 Campaign Manual 2 advice @fppc.ca.gov April 2016 Via= ® 111. .. .: ortini" -Each odd-numbered year, a total of 20 local jurisdictions are randomly The the treasurer candidate may and selected for mandatory audit. All candidates in the selected jurisdiction be fined by the FPPC if all are subject to audit if they have raised or spent $2,000 or more. reporting and recordkeeping requirements are not met. Additionally, 25% of contested Superior Court offices are randomly Violations of the Act are selected. Candidates who raise or spend $15,000 or more in these punishable by fines of up to selected races are subject to audit. In addition, the FPPC and the $5,000 per violation. Franchise Tax Board are authorized to conduct discretionary audits. x r's€ a • . aft 00.,.. hS Primarily Formed Committees A non-candidate controlled "primarily formed committee" is not required to maintain a separate bank account; however, it is recommended that they do so. Pre-numbered and pre-printed checks with the committee's name are helpful in meeting the recordkeeping requirements discussed in this chapter. Committees may not commingle campaign contributions with any individual's personal funds. Candidate Controlled Committees 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 account. A candidate's personal funds used to pay the filing fee or the ballot statement fee do not count toward the $2,000 threshold. The account may be established at any financial institution (i.e., bank, credit union) located in California. Under the Act's one bank account rule discussed in Chapter 1, a candidate or officeholder may only have one controlled committee with one bank account per election. Candidates running for one office while holding another must establish a separate campaign bank account for each office, but may not have more than one bank account per office per election. Fair Political Practices Commission Chapter 2.4 Campaign Manual 2 advice @fppc.ca.gov April 2016 All campaign contributions must be deposited into the campaign bank account and all campaign expenditures must be made from the campaign bank account. Candidates must deposit personal funds to be used for the campaign in the campaign bank account before making campaign expenditures. Exceptions: The Political Reform .' Act does not require a federal tax ID number. • Candidates may use their personal funds to pay a filing fee or However, most banks will a ballot statement fee without first depositing the funds into the require one in order to open campaign account. a campaign bank account. A tax ID number may be obtained on the IRS website, • An officeholder may use personal funds to pay officeholder www.irs.gov. expenses. • A candidate may contract with a vendor or collecting agent to collect contributions prior to promptly transferring the funds to the candidate's campaign bank account without violating Campaign funds may the requirement that the candidate have no more than one not be commingled with any individual's bank account. Fees deducted by the vendor are considered personal funds. expenditures from the campaign bank account at the time they are deducted. , ,rii 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: • Campaign strategic planning and fundraising expenses; • Services and actual expenses of outside political consultants, the campaign treasurer, other staff, pollsters, and other persons who provide services directly in connection with the election; • Voter registration and get-out-the-vote drives; and • Payments for mailings, political advertising, yard signs, opinion polls or surveys, and other communications if the payments are either: For a communication that makes reference to the candidate's future election or status as a candidate; or Fair Political Practices Commission Chapter 2.5 Campaign Manual 2 advice @fppc.ca.gov April 2016 Made three months prior to an election for which the candidate has filed a Candidate Intention Statement (Form 501), a declaration of candidacy, or nomination papers with an elections official, or any other documents necessary to be listed on the ballot for an elective office. Ex 2.1-Thien Vu is a city council member and still has an open committee from the city council election. She is running for county supervisor in the next election and has opened another bank account and committee for that race. She must use the campaign bank account for her county supervisor campaign to pay for her yard signs and all other expenses related to the upcoming county supervisor election. Redesignating the Bank Account Officeholders: An officeholder seeking reelection to the same office may use the bank account that was established for the prior election. • The account may be redesignated at any time prior to receiving campaign funds become surplus on contributions in connection with reelection. The officeholder must file a the 90th day following new Form 501 (Candidate Intention Statement) and an amended Form the closing date for the postelection reporting 410 (Statement of Organization). period or on the 90th day following the date of leaving `*me Defeated Candidates: A candidate that is defeated in an election office,whichever occurs last. The postelection reporting may use the same bank account for a future election to seek the same period for an election held office. The candidate must file a new Form 501 (Candidate Intention in the first six months of the year is June 30 and Statement) and an amended Form 410 (Statement of Organization). the postelection reporting The funds must be redesignated before they become "surplus funds." period for an election held in Campaign funds become surplus on the 90th day following the closing t ist Dr ce months of the yeee ear is December 31. Once date for the postelection reporting period. the funds become surplus, they may not be used for a future election. See Chapter Note: A campaign bank account may not be redesignated if the 5 for the permissible uses of officeholder/candidate is seeking election to a different office. See surplus funds. Chapter 11 for the requirements that must be met in order to use leftover campaign funds for a future election to seek a different office. Ex 2.2-John Davis lost the city council election in June. John has$3,500 remaining in his campaign bank account and is considering seeking another city council position in two years. In order to use the remaining$3,500 for the future election,John must file a new Form 501 (Candidate Intention Statement) and redesignate the bank account to the future election by amending his Form 410(Statement of Organization)to indicate the new office sought and year of election. This must be done within 90 days following the end of the postelection reporting period for an election held during the first six Lmonths of the year. Fair Political Practices Commission Chapter 2.6 Campaign Manual 2 advice @fppc.ca.gov April 2016 Investments Campaign funds may be transferred from a campaign bank account to certificates of deposit, interest-bearing savings accounts, money market funds, or similar accounts. The funds must come from a campaign bank account designated for a specific office and be deposited in investment accounts established only for that office. The funds must be redeposited into the same campaign bank account before being used for campaign expenses. Credit Accounts One or more credit accounts may be established for each campaign 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. In lieu of establishing a new credit account, a candidate may designate an existing personal credit card with a zero balance as the campaign bank account 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 have been paid with funds from the campaign bank account. Once 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 each campaign office so long as the following conditions are met: • 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 election to the specific office or for the expenses of holding the office for which the petty cash fund was established. Fair Political Practices Commission Chapter 2.7 Campaign Manual 2 advice @fppc.ca.gov April 2016 ✓ 11_11 • Once the funds are spent, payments made from petty cash must be reported as expenditures. Legal Defense Fund Committees The Act permits a local candidate or elected officer to establish a legal defense fund, if the candidate or officer is subject to civil, criminal or administrative proceedings arising directly out of the conduct of an election campaign, the electoral process, or the performance of the officer's governmental duties. Contributions raised for legal defense must be held in a separate bank account. Any funds raised may only be spent to defray attorney's fees and other related legal costs, as defined in the Act. (See Regulation 18530.45 for additional 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. " Recall Elections An officeholder who is the subject of a recall may use an existing committee (set up for the office he or she currently holds) to receive contributions and make expenditures to oppose the qualification of the recall measure, and if the recall petition qualifies, the recall election. The officeholder may instead choose to set up a separate committee with a separate bank account. The officeholder and committee treasurer are subject to the recordkeeping requirements discussed in this chapter. See Chapter 11 for additional information about recall elections. ec`• • 'veepv.. ., 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 Fair Political Practices Commission Chapter 2.8 Campaign Manual 2 advice @fppc.ca.gov April 2016 the recordkeeping procedures required by the Political Reform Act and FPPC regulations outlined in this manual. While others may be involved, the candidate, treasurer, and principal officer(s) as listed on the committee's Statement of Organization (Form 410), remain legally responsible for the accuracy of the records. Record Retention _ Ex 2.3-Sharon Goldstein, Candidates and committees must keep all records, including original a city council member, source documentation, such as bank statements and other records filed her first campaign statement on January reflecting account activity, for a period of four years from the date the 31, 2014. The records campaign statement relating to the records was filed. associated with completing that statement,such as receipts and information Records of Contributions Received and Other Receipts about contributors, must be retained until January 31, Two types of records are required for receipts: a daily record, (.2018. showing how much money was received on any given day; and 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. Date Received A monetary contribution is received on the date the committee, or an agent of the 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 committee obtains possession or control of the funds. The following list provides examples: • A contributor makes a contribution over the telephone. The contribution is "received" by 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 is processed. The contribution is "received" by the committee on the date the committee receives the payment information. 'rrif Fair Political Practices Commission Chapter 2.9 Campaign Manual 2 advice @fppc.ca.gov April 2016 . __1- • 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 is "received" by the committee when the committee has possession of the funds. • A contributor makes a contribution by text message. The contribution is "received" by the 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. The contribution is "received" when 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. 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 "cumulative amount") 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 840►- more as described above, the contributor's occupation and employer Fair Political Practices Commission Chapter 2. 10 Campaign Manual 2 advice @fppc.ca.gov April 2016 { 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 *id business entity, not the person who signs the check. A contribution of$100 or more must be returned if the contributor's name, street address, and, if the contributor is an individual, his or her occupation and employer are not in the committee's records within 60 days from receipt of the contribution. Such contributions may be deposited in the committee's bank account pending receipt of the information, in which case they must be reported on the next campaign statement required to be filed (including 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 committee also must note in its records the date the contributor Ex 2.4-Stanley Hughes, a city clerk candidate, received information is received, if that date is different than the date the a contribution of$100 from contribution is received. Martha Andersen on June 1. The only information he received was her name When a contribution cannot be returned to the contributor within 60 and address as listed on her days from the date the contribution was received, the contribution check. On his semi-annual amount must be paid to the general fund of the local jurisdiction in restatement covering the reporting period through which the committee is based. In the case of a Superior Court judge June 30, he reported or a judicial candidate, the contribution must be paid to the Secretary receiving$100 from Martha, listed her name and address, of State for deposit in the State General Fund. and indicated that he would amend his statement when If a contribution is returned to the contributor by check and the check is he received her occupation and employer information. not cashed by the contributor within 90 days, the contribution amount By July 31 of that same year, must be paid within 30 days to the general fund of the local jurisdiction even notifying Martha, Stanley after ti sll did not have her or to the Secretary of State for deposit in the State General Fund. occupation and employer information. The committee Intermediaries must return $100 to Martha. For contributions of$25 or more made through an intermediary (see Chapter 3), records with the above information for both the intermediary and the contributor are required. '" Fair Political Practices Commission Chapter 2. 11 Campaign Manual 2 advice @fppc.ca.gov April 2016 Affiliated Entities Information from affiliated entities (see Chapter 3) that describes the connection of affiliated contributors must be maintained in the records. 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 recorded. (See "Valuing Nonmonetary Contributions" in Chapter 3.) 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: • Interest rate of the loan, if any; • Due date of the loan, if any; and • 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 The committee must keep copies of all documents reflecting deposits made and all records reflecting campaign bank account balances, 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 checks; contributor cards; letters of transmittal; notices received from contributors; memoranda or other records that describe the method Fair Political Practices Commission Chapter 2. 12 Campaign Manual 2 advice @fppc.ca.gov April 2016 used to determine the fair market value of donated goods or services (nonmonetary contributions); and loan agreements or other documents that reflect indebtedness. Documentation for electronic transactions must include information collected when debiting the contributor's account, such as itemized transaction reports (including the credit card confirmation number), 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 cardholder's name and street address and card number. 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: • Full name and street address, including zip code, of payee; • Expenditure amount; • Date each expenditure was made or, in the case of accrued expenses, the date the goods or services were received; and • Description of the goods or services received. Fair Political Practices Commission Chapter 2. 13 Campaign Manual 2 advice @fppc.ca.gov April 2016 Contributions to Other Committees and Independent Expenditures For expenditures that are contributions to another candidate, officeholder, or committee, or independent expenditures to support or oppose a ballot measure, the amount of the expenditure and the cumulative total paid in that calendar year in connection with the candidate, officeholder, committee, or ballot measure must be recorded. For all such expenditures of$25 or more, the following information is required: • Date the contribution or independent expenditure was made; See Chapter 3 for a W. Whether the expenditure was an independent expenditure; detailed discussion • and examples of when a contribution is made. • Name of the officeholder or candidate and the office and Chapter 6 describes district he or she holds or for which he or she seeks nomination communications that are considered independent or election, or the number or letter of the measure and the expenditures. jurisdiction in which the measure is to be voted on; and • 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 the committee: interest rate, if any; due date, if any; and full name 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: New- Fair Political Practices Commission Chapter 2. 14 Campaign Manual 2 advice @fppc.ca.gov April 2016 Gifts: The date of the expenditure, a description of the gift, and the name of any recipient who received a benefit of$50 or more. Meals: The date of the meal, the name of each individual who attended the meal, and whether he or she is a member of the candidate's 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 of the candidate's household or someone who has authority to approve expenditures of campaign funds. 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 statements; receipts; credit card charge slips; vouchers; contracts; loan agreements; and other documents produced or received by the committee reflecting additional obligations also must be kept. Copies of canceled checks may be retained if the copies contain a legible image of the front and back of the canceled check and the copies are Expenditures may be obtained from the financial institution. made electronically using a bank account, If no receipt, voucher, or invoice is available, a voucher should be credit card,n c ay bit card,service payment service written as soon as possible with the date and amount of the payment, (e.g., PayPal)so long as the name of the payee, and a description of the goods or services detailed records are kept. received. A voucher is not required for payments under $25. Contributors of$5,000 or More The following must be retained for a period of four years following the date the campaign statement relating to the records is filed: • Mailers. A copy of any mass mailing sent by the committee (see Chapter 6). Fair Political Practices Commission Chapter 2. 15 Campaign Manual 2 advice @fppc.ca.gov April 2016 • Political Calls. A script of the call or a copy of the recorded phone message when the committee pays for more than 500 telephone calls to expressly advocate support for or opposition to a candidate or ballot measure (see Chapter 6). • Major Donor Notices. A copy or record of all notifications to contributors of$5,000 or more (see Chapter 3). Answering Your Questions A. May the candidate serve as the committee's treasurer? Yes. The candidate may serve as the treasurer or assistant treasurer. B. Are there private firms that provide treasurer or campaign reporting services? Yes. The FPPC does not endorse or recommend any particular private firm. Candidates may find useful information on the websites of the California Political Attorney's Association and Now- the California Political Treasurers Association. By entering a treasurer's name on the FPPC's website, information may be obtained about treasurers that have been fined in an FPPC administrative action or have received warning or advisory letters. There is also a list of committee treasurers that have been fined two or more times by the FPPC. C. Are there any specific accounting qualifications for someone to be able to serve as treasurer? No. However, no individual should accept the position as a mere figurehead. Fair Political Practices Commission Chapter 2. 16 Campaign Manual 2 advice @fppc.ca.gov April 2016 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? To ensure that the statement is filed on time, the committee may submit the filing if it is signed by one of the following: the candidate, treasurer, or assistant treasurer.. If the candidate's 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. E. I do not intend to raise any funds from others and I will not be spending any personal funds on my campaign other than the payments for the filing fee and ballot statement 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 ,,NS 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 filing fee. Do I need to open a bank account? Yes. Since you plan to spend $2,000 or more for your campaign, you must open a campaign bank account. Fair Political Practices Commission Chapter 2. 17 Campaign Manual 2 advice @fppc.ca.gov April 2016 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 step, 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. 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 N401.• 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 Commission Chapter 2. 18 Campaign Manual 2 advice @fppc.ca.gov April 2016 Authority §.: The following Government Code sections and Title 2 regulations *id provide authority for the information in this chapter: Government Codes Sections 82047.6 Principal Officer. 84100 Treasurer. 84104 Recordkeeping. 84105 Notification of Contributors. 84302 Contributions by Intermediary of Agent. 84306 Contributions Received by Agents of Candidates or Committees. 84307 Commingling with Personal Funds. 84310 Identification Requirements for Telephone Calls. 85304.5 Legal Defense Fund; Local Candidates and Elected Officeholders. 85700 Donor Information Requirements; Return of Contributions. 90000 Responsibility. 90001 Mandatory Audits and Investigations. 90002 Audits and Investigations; Time. 90003 Discretionary Audits. 90007 Auditing Guidelines and Standards. Title 2 Regulations 18401 Required Recordkeeping for Chapter 4. 18402.1 Principal Officers. 18421.1 Disclosure of the Making and Receipt of Contributions. 18421.2 Street Address. 18421.3 Reporting of Contributions and Expenditures Collected by Contract Vendors or Collecting Agents. 18421.31 Text Message Contributions. 18421.7 Reporting an Expenditure fora Gift, a Meal, or Travel. 18426.1 Assistant Treasurer. 18427 Duties of Treasurers and Candidates with Respect to Campaign Statements. 18427.1 Notification to Contributors of Filing Obligations. 18432.5 Intermediary. Fair Political Practices Commission Chapter 2. 19 Campaign Manual 2 advice @fppc.ca.gov April 2016 11111 18440 Telephone Advocacy. 18524 Investment and Expenditure of Candidates' Campaign Nam. Funds. 18530.45 Legal Defense Funds — Local Candidates and Officers. 18570 Return of Contributions with Insufficient Donor Information. 18994 Auditing and Investigations. 18995 Standards and Guidelines for Auditing Statements and Reports. sow- Fair Political Practices Commission Chapter 2.20 Campaign Manual 2 advice @fppc.ca.gov April 2016 CONTRIBUTIONS This chapter begins with the definition of"contribution" and provides guidelines necessary for proper reporting, including a discussion on valuing nonmonetary contributions. The Act does not contain contribution limits for local candidates; however, many cities and counties have adopted campaign ordinances that include contribution limits and other restrictions. Check with your local elections or ethics agency. 4,42:44;+titon A"contribution" is a 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). • 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 from the candidate's family. • Enforceable promises to make a payment (for example, a contributor promises, in writing, to pay for specific goods or Contributions of$100 or more may never be services and, based on that written promise, the committee made or received in cash. expends funds or enters into a legally-enforceable contract to purchase the goods or services). Fair Political Practices Commission Chapter 3. 1 Campaign Manual 2 advice©fppc.ca.goy April 2016 of • e • . Ex3.1-A committee's campaign consultant *taw received monetary contribution is received on the date the candidate, received a hand-delivered check at a May 14, Friday committee, or an agent of the committee, obtains possession evening fundraiser. The or control of the cash, check, or other item that constitutes the check was delivered to the committee's treasurer the contribution. following Monday, May 17. The contribution was When an agent of the committee, such as a campaign consultant, received on May 14,the day the committees agent receives a contribution for the committee, the agent must notify the obtained possession of the treasurer no later than the closing date of the next campaign statement check. due. The date of the contribution is the date the agent obtained possession of the contribution. Ex 3.2-The committee a A nonmonetary contribution is received on the earlier of the following: also contracts with website service to receive contributions • The date funds were expended by the contributor for the goods over the Internet. The or services; website service sends the committees treasurer an e-mail each time a • The date the candidate, committee, or an agent of the contributor logs on to the committee, obtained possession or control of the goods or website service and enters his or her donor information services; or and credit card number. Logging onto the website • The date the candidate or committee received the benefit of the service,the treasurer can expenditure. accept the contribution and receive the funds. The committee reports receipt A nonmonetary contribution of employee services is made by the of the contribution on the contributor and received by the candidate or committee on the payroll date because it receives it controls the the a-mail date of the employee. See the discussion later in this chapter for contribution on that date. information about how to value a contribution of employee services. An enforceable promise 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 person makes an "enforceable promise to make a payment" if he or she: • Guarantees, furnishes security for, endorses or cosigns a loan. • Makes and delivers a post-dated check. Fair Political Practices Commission Chapter 3.2 Campaign Manual 2 advice@fppc.ca.gov April 2016 • 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. "Enforceable promise" also does not include a contributor's agreement to make future installment payments through wire transfer, credit card transaction, debit account transaction, or similar electronic payment. There are many exceptions to the definition of"contribution." In 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 volunteer's travel expenses), no 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 "Employee Time" later in this chapter for additional information. Home/Office Fundraisers: If a person, other than a lobbyist (or a cohabitant of a lobbyist) or lobbying firm, holds a fundraiser or other For the home/office • campaign event in his or her home or office, the costs incurred by fundraiser contribution exception to apply,the the occupant of the home or office need not be reported as long as total cost of the event must the total cost of the event is $500 or less. However, if someone else be$500 or less no matter how many candidates or donates food, beverages, or anything else of value to the event, committees benefit from the the fair market value of those donated goods is a nonmonetary event. 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 Commission Chapter 3 3 Campaign Manual 2 advice @fppc.ca.gov April 2016 Note: The home/office fundraiser exception does not apply to a state lobbyist or to a cohabitant of a state lobbyist. A registered state A state lobbyist may not hold a fundraiser lobbyist may not make a contribution to an elected state officer or for a local candidate/ candidate for elective state office if the lobbyist is registered to lobby officeholder who is seeking the official's agency or the agency for which the candidate is seeking election to a state office. election. A fundraiser held in the home of a lobbyist is considered a contribution; therefore, a lobbyist is prohibited from holding a Ex 3.3-Your neighbor holds fundraiser in his or her home for a candidate seeking election to a a fundraiser in his home for governmental agency that the lobbyist is registered to lobby. A similar your campaign. As long as the total cost of the event is prohibition applies to lobbying firms holding fundraisers at their offices. $500 or less,your committee is not required to report Social Media — Internet Communications: Uncompensated Internet the cost the event s a nonmonetary contribuution. 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 business hosts a contribution or expenditure. Certain Internet communications require a campaign fundraiser in advertisement disclaimers as outlined in Chapter 6. its conference room. The business spends$450 for beverages. A separate Member Communications: Payments made by an organization business entity provides (including a political party, union, trade association) for certain Since food valued at of the Since the total cost of the ,,`,,, communications that are sent only to the organization's members, event now exceeds$500, employees, or shareholders, or their families, are not contributions to both businesses have made reportable nonmonetary a candidate endorsed in the communications. For example, if a union contributions that must be sends a mailing to only its membership, supporting your campaign, the ( reported by your committee. cost of the mailing is not a reportable contribution. Gifts: A payment or other benefit to a candidate or official that is Ex 3.5-Your friends send e-mails to their family and made principally for personal purposes (not political purposes) is a gift friends and post on their unless the candidate or official provides payment or services of equal personal social networking sites communications or greater value. Generally, gifts are subject to annual limits and must supporting your campaign. be disclosed by the candidate or official on a Form 700 (Statement of Since your friends are not Economic Interests). For additional information about gifts, see the being compensated, hese activities are not reportable fact sheet on the FPPC's website entitled, Limitations and Restrictions even if you provided your friends with campaign on Gifts, Honoraria, Travel and Loans. materials. 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 for political or personal purposes; therefore, they are not considered Fair Political Practices Commission Chapter 3.4 Campaign Manual 2 advice @fppc.ca.gov April 2016 contributions or gifts. However, if the payment is made at the behest of an elected official and the payment(s) totals $5,000 or more from a single source in a calendar year, the official is required to file a Form 803 (Behested Payment Report) as described in Chapter 11. b. AggrjE ail i i0 Contributions received from 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 individual's personal funds and contributions made by an entity when the individual directs and controls the entity's contributions. • Contributions from two or more entities that are directed and controlled by a majority of the same persons. The term "person" • • Contributions made by entities that are majority owned by any includes an individual, Nilo person. Contributions made by the majority owner and all other proprietorship,firm, entities majority owned by that person are aggregated, unless partnership,joint venture, syndicate, business trust, those entities act independently in their decisions to make company,corporation, contributions. limited liability company, and association. The following examples provide general guidance regarding aggregation of contributions. The FPPC may be contacted for advice related to your specific facts. Ex 3.6-Sally Perez contributed $98 from her personal funds and another$98 from the funds of her wholly-owned business, Flowers by Sally Perez,to the Anderson Committee. Because contributions from an individual and his or her business, or from any other account he or she directs and controls, are considered to be from a single contributor,the Anderson Committee must itemize both contributions and report a cumulative amount received from Sally and her business of$196 on its committee campaign statement. Fair Political Practices Commission Chapter 3.5 Campaign Manual 2 advice @fppc.ca.gov April 2016 _■_ Ex 3.7- EXtream Snowboards, Inc., made a contribution of$99 to the Johnson Committee. EXtream Snowboards, Inc., is a wholly-owned subsidiary of 'f' LeesureTech Industries,which also made a contribution of$99 to the Johnson Committee. If there was coordination between EXtream Snowboards and LeesureTech Industries,their contributions are considered to be from a single contributor. The Johnson Committee must itemize both contributions and report a cumulative amount received of$198 on its campaign statement. Ex 3.8-William Smith is a developer with four separate corporations. William makes political contributions from his personal funds and directs and controls the contributions of each of his corporations. William made a contribution of $1,000 from his personal funds and contributions of$2,000 from the funds of each of his corporations to the committee. Because he directed and controlled all of these contributions,they are considered to have been made by a single contributor. The committee must itemize each contribution and show a cumulative amount received of$9,000. Ex 3.9-Southwest TeleCom has a greater than 50 percent ownership interest in American TeleCom. Each entity,entirely on its own and with separate decisionmaking bodies, makes a contribution of$1,000 to a committee. The committee does not aggregate these contributions because Southwest TeleCom and American TeleCom acted independently in their decisions to stay I make the contributions. M a e - o • s s t 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 of the employer's contribution. 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 intermediary's and the true source's name and address, 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. Noire Fair Political Practices Commission Chapter 3.6 Campaign Manual 2 advice @fppc.ca.gov April 2016 Ex 3.10- Berry and Vienna each made a $100 contribution from their personal funds to support Tina Baker for city council, with the understanding that they would be reimbursed by their employer. Berry and Vienna must tell the "' committee that they are acting as intermediaries on behalf of their employer. The committee must itemize the$200 contribution from the employer and also disclose Berry and Vienna as intermediaries. Ex 3.11-An organization collects ten contributions earmarked for a candidate's campaign. The organization deposits the contributions and provides the campaign committee one check from the organization rather than providing ten individual checks. The organization is an intermediary and the individuals are the contributors. Both the true source and the intermediary must be disclosed on the campaign statement. 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 from sources unfamiliar with the candidate or his/her agents; a series of contributions from a single employer; and, significant contributions from a nonprofit organization or multipurpose organization that is not registered as a political committee on the Secretary of State's website. Ty Reporting`\'moos ypes} oii u otis 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 Commission Chapter 3 7 Campaign Manual 2 advice @fppc.ca.gov April 2016 • For contributions of$25 or more, the committee treasurer should make sure that a copy of the credit card voucher or other documentation is sent to the committee as soon as practicable Ex 3.12-Your committee after the contributions are made. holds a golf fundraiser and charges$200 per person. After the event,you • The entire amount charged to the contributor is reported as a determine that it cost your contribution. committee$50 per person to pay the caterer, hall rental, entertainment, invitations, • Fees associated with this type of fundraising or deducted by the etc. The invitations state vendor before the contributions are sent to the committee are that half of the ticket cost reported as expenditures. The fees are not deducted from the will be donated to a charity and half will be contributed amount of each contribution reported. to your committee. Report on Schedule A of the Form • Contributions made by text message are received on the 460 a $100 contribution date the mobile device company receives the funds from the from a er , as well purchasers, as well as the contributor, not the date the text was sent. contributor's name, address, occupation,and employer. Do Fundraisers: The full amount (face value) of a fundraiser ticket is a person costs from each reportable contribution, unless it is a joint committee/charity fundraiser ticket sold. The expenses advertised with specific attribution. The costs of the event are not will be reported on Schedule E of the Form 460. subtracted when determining the amount of the contribution. Slier Auctions and Garage Sales: When items are donated for auction or Ex 3.13-A restaurant sale at a fundraiser, the donated item is a nonmonetary contribution. donates a dinner for (See below for determining the value.) When someone buys an item, co omm mittette e. A At e $ to your ct your the payment is considered a "Miscellaneous Increase to Cash" and committee's auction, is reported as such. If any person or entity pays $100 or more, the Gloria Sanchez bids$300 and wins the dinner for payment is itemized. four. Itemize$200 as a nonmonetary contribution When someone pays more for an item than it is worth, the amount from the restaurant on Schedule C of the Form that is equal to the fair market value is reported as a miscellaneous 460. Itemize Ms. Sanchez increase to cash and the amount over the fair market value is reported on Schedule I of the Form 460 ($200 miscellaneous as a monetary contribution. Each is itemized at $100. increase to cash) and on Schedule A of the Form 460 Bar Receipts: Funds received by selling drinks at a fundraiser at fair as a contributor of$100(the amount over the fair market market value are reported as miscellaneous increases to cash, not L value). contributions. Fair Political Practices Commission Chapter 3.8 Campaign Manual 2 advice @fppc.ca.gov April 2016 Raffle Tickets: Receipts from the sale of raffle tickets at a fundraiser are reported as contributions. Items donated for raffle prizes are reported as nonmonetary contributions. (Note that Penal Code section 319 imposes some restrictions on raffles. Contact your county's district attorney for further information.) Joint Checking Accounts: Individuals (including spouses) may make separate contributions from a joint checking account. For Ex 3.14- Linda and Jerry reporting purposes, the full amount of the contribution is reported Nelson have a joint checking as coming from the individual who signs the check. If two or more inda signed account. From this account, g g Linda signed a $100 check individuals sign the check, the contribution is divided equally between payable to Friends of Joshua or among the signers, unless there is an accompanying document Truman. The committee identifies Linda Nelson as signed by each individual whose name is printed on the check that the contributor of the full clearly indicates a different apportionment. L$b00. 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 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, unless the facts show otherwise, e.g., that the child actually chose to make the contribution. Ex 3.15- Barbara Taylor was Text Contributions: For a contribution received by a text message, defeated in a June election. In the contributor is the person who is subscribed to the cell phone order use the lection fu a nds for a future election, fu , number that texted the contribution. she must transfer the remaining funds to a new account within 90 days of Transfers from a Prior Campaign: Candidates who have more than the postelection reporting one campaign bank account and controlled committee may transfer period. If the funds are not funds from one account/committee to another so long as the funds are transferred by that date, they are considered "surplus not "surplus funds." funds" and may not be used for a future election. Fair Political Practices Commission Chapter 3.9 Campaign Manual 2 advice @fppc.ca.gov April 2016 Leftover funds become surplus upon the 90th day after leaving an elective office, or the 90th day following the end of the postelection reporting period following the defeat of a candidate for elective office, whichever occurs last. See Chapter 8 for information about how to report transferred funds. There are restrictions A` on transfers of funds Chapter 11 includes a discussion about the rules for using leftover to run for state office. See campaign funds for a future election. FPPC's Information Manual for State Candidates(Manual 1) for further information. Contributions from the Candidate: A payment from a joint In addition, candidates and checking account that bears the name of the candidate and spouse is committees should eck with the loe c cal elections considered a contribution from the candidate. This is true even if the office to determine if there spouse signs the check. are local contribution limits or other restrictions pursuant to a local campaign A contribution received from a spouse's legally separate funds and ordinance. 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. A candidate's business, other than a sole proprietorship, is considered a separate legal entity. Therefore, contributions from the business are not considered to be the candidate's personal funds and may be subject to local contribution limits. Generally, contributions from a candidate's sole proprietorship 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 other candidates or officeholders. Fair Political Practices Commission Chapter 3. 10 Campaign Manual 2 advice @fppc.ca.gov April 2016 Undesignated Contributions: Candidates who are soliciting contributions for more than one office and receive a contribution that has not been designated for a specific office may deposit the "' 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. This section provides assistance in determining how to value nonmonetary contributions so that they may be reported accurately. Ex 3.16 The owner of an The varieties of nonmonetary contributions are vast, so it is not electronics store donates an possible to present all possibilities. Contact the FPPC for assistance. iPad valued at$550 to your committee for sale at an *SO upcoming auction. Although Fair Market Value: When a nonmonetary contribution is received, the cost to the owner is less the fair market value of the goods or services (the amount it would than $550,the nonmonetary contribution is reported at cost a member of the public to purchase the goods or services) must the fair market value amount be reported. If the committee does not know the fair market value of$550(the amount it would cost a member of the of a nonmonetary contribution (e.g., an original piece of artwork), IL.public to purchase the iPad). the committee may send an e-mail 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-An accounting firm provides your committee with the services of an Employee Time: If an employer donates the use of an employee to accountant. The accountant work on campaign activities for one or more campaigns, the amount spends 25 percent of her time working for the the individual is paid is reportable as a nonmonetary contribution campaign. This percentage from the employer if the employee spends more than 10 percent of her gross compensation is of his or her compensated time in a calendar month working on $2,000. The amount of the nonmonetary contribution campaign activity. To determine the contribution amount, the gross reported from the compensation is allocated to the time spent on campaign activity. accounting firm is$2,000. Compensation includes wages paid and any benefits in lieu of wages, `" Fair Political Practices Commission Chapter 3 11 Campaign Manual 2 advice @fppc.ca.gov April 2016 such as stock options or an annuity purchase. Compensation does not include routine benefits, such as the employer's payments to a 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 that provides a candidate with a flight in a private airplane is making a nonmonetary contribution. treasurer asur-Your committee s the treasurer knows the owner The value is determined by using either the commercial rate to the of a printing shop and destination, if available, or the charter rate divided by the number of the owner provides your committee a 50 percent passengers on the flight. discount on the printing of a brochure that normally E-Mail Lists: If a list of e-mail addresses is donated, the fair market committee would cost must s r Your c m report a value must be reported as a nonmonetary contribution. nonmonetary contribution of$600 from the printing Corporate Stock: The contribution of corporate stock must be shop. 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 purchaser is unknown, report the brokerage firm as the source with a notation that the payment represents the sale of stock. Broker's fees must be reported on Schedule E. . ,s€:,�a � �k 5..�� say .=; m •- "� '� fe i i • ' i Generally, the fair market value of a communication is reported as a Ex 3.19-The Express contribution when it expressly advocates support of or opposition to a Paper Company agrees to produce a mailing for your candidate and was made at the behest of(or in coordination with) the committee. The value of the affected candidate or primarily formed committee. nonmonetary contribution is the amount it would have cost your committee if it had Multiple Candidates/Measures: If a communication expresses paid fair market value for the support of or opposition to more than one candidate or ballot mailing, which is likely more than what the actual costs measure, the fair market value attributable to each may be calculated were to the company. 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 Commission Chapter 3. 12 Campaign Manual 2 advice @fppc.ca.gov April 2016 The value of a mailer that supports or opposes candidates and measures being voted on in different jurisdictions may be prorated Ex 3.20-A Chamber of Commerce produces and based on the number of mailers sent to each candidate or ballot mails a one-page flyer urging measure's jurisdiction. voters to vote for supervisor candidate Smith and vote against two ballot measures. Political and Non-Political Material: The cost of a communication Half of the flyer is devoted to containing both express advocacy in support of or opposition to a supporting candidate Smith and the other half equally candidate, as well as non-political material, may be prorated. Costs opposes the two measures. directly associated with the political message are reportable by the The Chamber coordinates the mailing with candidate candidate, including, for example, compensation paid to employees Smith. The total cost of who spend more than 10 percent of their compensated time in a producing and mailing calendar month producing or mailing the political materials, and the the flyer was must Candidate a Smith th m must report pro rata cost of paper, envelopes, and postage. The allocation may a nonmonetary contribution be based on the comparative number of pages or the comparative of$5,000 from the Chamber. amount of weight between the political and non-political materials. \\ Bulk Rate Permits: Use of an organization's bulk rate permit is a • nonmonetary contribution from the organization. If the committee pays the actual postage costs incurred under the bulk rate permit, the fair If the organization pays p g p for the costs of the market value of the contribution is either: mailing using its bulk rate permit and the committee does not have such a permit, • The price the organization paid for the bulk mailing permit; or the amount it would have cost to pay for the mailing • The difference in postage costs between the bulk mailing rate using regular mail or the cost of the bulk rate mailing and that of regular mail. plus the cost of a permit should be reported as a Phone Banks: Businesses and other entities will sometimes allow nonmonetary contribution. 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 contribution, even if only local calls are made. One method to 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 & 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 Commission Chapter 3. 13 Campaign Manual 2 advice @fppc.ca.gov April 2016 valuing polling or survey data. The formula is based on the age of the data. The chart below illustrates the fair market value of data based Ex 3.21-A local business association commissioned 'on the number of days that pass from the date the entity originally a public opinion poll to received the data to the date the data were provided to the candidate determine voters' attitudes about candidates running or committee. for Governor and candidates in a Senate district. The Age of Data Value association provided the poll results to a candidate 0 - 15 days Full Value for Governor and certain 16 - 60 days 50% Senate candidates. Since only a limited number of 61 - 180 days 5% questions pertained to the More than 180 days No Value Senate district issues,the candidates for Senate who received the poll results When only a portion of a survey is provided to or for the benefit of a may prorate the poll costs to candidate or committee, the nonmonetary contribution is the prorated determine the nonmonetary portion of the total value of the surve contribution amount they p survey. �must report. Committees that receive one or more contributions totaling $5,000 or more in a calendar year from an individual or entity that made the Sow contribution(s) from personal, business, corporate, or general funds must send the contributor written notice that they may have a filing obligation. Generally, the notice must be mailed, faxed or e-mailed to the contributor within two weeks 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, faxed or e-mailed to the contributor within one week. 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 the contribution is a candidate, officeholder, or an existing committee because they already are required to file campaign statements. Fair Political Practices Commission Chapter 3. 14 Campaign Manual 2 advice @fppc.ca.gov April 2016 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 year, California law requires you to file a Major Donor Committee Campaign Statement (Form 461). The deadline and location for filing this statement will depend upon the timing and type of contribution(s) you have made. For additional information, visit www.fppc.ca.gov and review the available campaign materials. Multipurpose organizations including nonprofits If your organization is a multipurpose group, it may qualify as a major donor committee required to file Form 461 or as a recipient committee required to file the Form 460 disclosing donors. Refer to Government Code Section 84222 and FPPC Regulation 18422 to determine your filing requirements. For additional information, visit www.fppc.ca.gov and review the available campaign materials. 24-Hour Reports Major donors, nonprofits, and other multipurpose organizations that trigger reporting obligations must also file a 24-hour Contribution Report (Form 497) if you: • Make contributions totaling$1,000 or more to a single Once contributions candidate, any of the candidate's controlled committees, or to of$10,000 or more are made,the major a committee primarily formed to support or oppose a candidate donor may be required or ballot measure during the 90 days prior to the election, or to immediately file Form on the date of the election, in which the candidate or ballot 497 (24-hour Contribution Report). Committees should measure is being voted on; or provide donors the link to the appropriate FPPC filing • Make contributions totaling $1,000 or more to state or county schedule. 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 Commission Chapter 3. 15 Campaign Manual 2 advice @fppc.ca.gov April 2016 _--. Electronic Filing State committees that make contributions of$25,000 or more must file electronically with the Secretary of State. State committees that are required to file the Form 497 (24-hour Contribution Report) must file this form electronically even if the $25,000 threshold has not yet been met. For more information on the electronic filing requirements, contact the Secretary of State's office at(916) 653-6224. Local committees should contact the local jurisdiction to determine if there are electronic filing requirements. Late Filing Penalties and Fines Failure to file campaign statements may result in late filing penalties of$10/day (state committees may be fined$20/day if they must file electronically and on paper) and fines of up to $5,000 per violation. FPPC Assistance For assistance with your filing obligations, contact the Fair Political Practices Commission toll-free at (866)ASK-FPPC, send an e-mail to advice @fppc.ca.gov, or refer to their website: www. fppc.ca.gov. 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 Commission Chapter 3. 16 Campaign Manual 2 advice @fppc.ca.gov April 2016 • 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 contributor's name, address, and, 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. vid 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 put our committee identification number on the invitation? There is no requirement to include the committee identification number, but it is highly recommended. Many campaigns do so because others need the information for their own reporting forms. Fair Political Practices Commission Chapter 3. 17 Campaign Manual 2 advice @fppc.ca.gov April 2016 C. We would like to hold a raffle at our next fundraiser. Are there any restrictions on raffles? Now The Political Reform Act does not restrict raffles; however, Penal Code 319 does prohibit certain raffles. The Penal Code is interpreted and enforced by each county's district attorney. Contact the local district attorney where the raffle will be held for further information. Of course, be sure all of the reporting 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 true no matter how many committees benefit from the event. v; ,, E. If I hold a fundraiser in my home for my candidacy, and the total cost is $500 or less, would the home/office fundraiser 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. May a nonprofit organization hold a joint fundraiser with a political committee? Yes. However, any costs incurred by the nonprofit organization which are not reimbursed by the political committee would be considered to be a nonmonetary contribution from the nonprofit to the political committee. The nonprofit organization should contact the IRS for any possible restrictions based upon the organization's tax status. Fair Political Practices Commission Chapter 3. 18 Campaign Manual 2 advice©fppc.ca.gov April 2016 G. Is volunteer work provided by some people considered a nonmonetary contribution because of the volunteer's id profession, such as free legal advice provided by a lawyer "' or bookkeeping done by a CPA? No. Volunteer personal services, regardless of the profession of the individual, are not reportable so long as the individual providing the services is not paid by a third party. H. Three candidates wish to conduct individual polls. A polling firm has offered a reduced rate because all three polls can be combined using one very large sample. Are the candidates receiving contributions from the polling firm because of the discounted fee, and are the candidates 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 each other. Additionally, if the polling firm provides the discount as part of its standard business policy of providing discounts in "„10 similar situations and does not provide the discount for political purposes, the candidates will not receive a contribution from the polling firm. 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. Fair Political Practices Commission Chapter 3 19 Campaign Manual 2 advice @fppc.ca.gov April 2016 ,1,1- J. If a potential donor takes me out to dinner to discuss my school board campaign and pays for my meal, do I report slow the meal as a nonmonetary contribution? No. Because there is a personal benefit to you, the payment for the meal would be considered a gift to you, not a contribution. The following Government Code sections and Title 2 regulations provide authority for the information in this chapter: Government Code Sections 82015 Contribution. 82018 Cumulative Amount. 82025 Expenditure. 82025.5 Fair Market Value. 82036 Late Contribution. 82047 Person. *''i'" 84105 Notification of Contributors. 84211 Contents of Campaign Statement. 84216 Loans. 84300 Cash and In-Kind Contributions; Cash Expenditures. 84302 Contributions by Intermediary or Agent. 84306 Contributions Received by Agents of Candidates and Committees. 85308 Family Contributions. 85311 Affiliated Entities; Aggregation of Contributions. 85312 Communications to Members of an Organization. 85700 Donor Information Requirements; Return of Contributions. Title 2 Regulations 18215 Contribution. 18215.1 Contributions; When Aggregated. 18215.2 Uncompensated Internet Activity by Individuals that is not a Contribution or Expenditure. 18216 Enforceable Promise to Make a Payment. 18225 Expenditure. Fair Political Practices Commission Chapter 3.20 Campaign Manual 2 April 2016 advice @fppc.ca.gov 18421.1 Disclosure of the Making and Receipt of Contributions. 18421.3 Reporting of Contributions and Expenditures Collected by Contract Vendors or Collecting Agents. 18421.31 Text Message Contributions. 18423 Payments for Personal Services as Contributions and Expenditures. 18427.1 Notification to Contributors of$5,000 or More. 18428 Reporting of Contributions and Independent Expenditures Required to be Aggregated. 18430 Committee Controlled by More Than One Candidate. 18432.5 Intermediary. 18523 Nondesignated Contributions or Loans. 18531.7 Payments for Communications — Section 85312. 18533 Contributions from Joint Checking Accounts. Noad Fair Political Practices Commission Chapter 3.21 Campaign Manual 2 advice @fppc.ca.gov April 2016 CONTRIBUTION RESTRICTIONS 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 Political Reform Act. In addition, while the receipt of campaign contributions generally will not create a conflict of interest for an elected officeholder in the performance of his or her duties, contributions may be the source of a conflict of interest for officeholders or candidates who are also appointed to certain boards or commissions. The section on "Disqualification and Campaign Contributions" covers this area of the law. ,,The Political Reform Act does not contain contribution limits for local candidates, but provides that cities and counties may adopt Check with your local elections office to contribution limits applicable to their elections. Many California determine if local campaign cities and counties have adopted campaign ordinances that include finance rules apply to your campaign. contribution limits and other disclosure provisions. The FPPC's website lists cities and counties with local campaign finance rules and links to the ordinances. For questions about local contribution limits, candidates and committees should contact their city clerk, county elections office, or their City Attorney's or County Counsel's office. Fair Political Practices Commission Chapter 4. 1 Campaign Manual 2 advice @fppc.ca.gov April 2016 . Res ctions'tins er t e Pongee °e" Reporting the True Donor If a contribution of$100 or more is received from a single source in a calendar year, the source must be identified on the committee's Form 460. If a contribution is received through an intermediary, both the intermediary and the true source of the contribution must be identified. (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 Act. One type of common violation is when an employer reimburses 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-A committee trigger a duty for a treasurer to inquire if a contribution is identified receives contributions correctly. Some examples are the size of the contribution, the reported of$1,000 each from ten different individuals in the source, and the likelihood of that source making a contribution of the same week. The committee size reported. treasurer and campaign fundraiser did not make specific solicitations to If it is discovered that a committee received a contribution and the the individuals. Upon the donor and intermediary were not properly identified, the contribution treasurer's request,the must be paid to the Secretary of State for deposit in the State General work f for the state same et they er work for the same employer. Fund. When the action is brought under a local campaign ordinance, The committee treasurer a local committee may pay the contribution to the local jurisdiction for has a duty to inquire employer to determine if the deposit in its general fund. reimbursed the employees. Fair Political Practices Commission Chapter 4.2 Campaign Manual 2 advice @fppc.ca.gov April 2016 Cash Contributions w,,:The committee may not accept a cash contribution of$100 or more. Such a contribution will not be deemed "received" if it is not deposited or spent and is returned to the contributor prior to the end of the reporting period of the campaign statement on which the contribution Even if change is would otherwise be reported. Even if the contribution is inadvertently immediately provided, deposited, it is not deemed "received" if it is refunded within 72 hours a committee may not accept of receipt. However, a cash contribution of$1,000 or more that is $100 or more in x from a single source. For r e example, received in the 90 days before the election, including the date of the if the committee is holding a election, that is inadvertently deposited must be refunded within 48 fundraiser and charging$50 per person, an attendee may hours in order to not be deemed "received." not pay with a$100 bill. The payment must be made by Anonymous Contributions personal check, debit card, or credit card. Anonymous contributions of$100 or more are prohibited. If the 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 Money Orders/Cashier's Checks/ `''''Traveler's Cheques Contributions of$100 or more made by money order, cashier's check, or traveler's cheque are prohibited 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.) Contributor's Legal Name Contributions must be made in the name by which the contributor is identified for legal purposes. y.. Fair Political Practices Commission Chapter 4.3 Campaign Manual 2 advice @fppc.ca.gov April 2016 Commingling Funds �Pr,Y Campaign funds may not be commingled with any individual's Campaign personal funds; they must be kept in an account separate from any contributions must be kept separate e from m personal account that contains personal funds. In general, campaign funds may funds and may not be used not be used for personal expenses. (See Chapter 5 for information for personal expenses. about the use of campaign funds.) Contributions Delivered in State Office Buildings 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 office building for which the State of California pays the majority of the rent. "Personally delivered" includes the delivery 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 delivered in a legislative district office or those sent by postal mail. Contributions from State Lobbyists A state lobbyist may not make a contribution to an elected state officer or a candidate for elective state office if the lobbyist is registered to lobby the governmental agency of the elected officer or the agency to which the candidate is seeking election. The lobbyist also may not contribute to a local committee controlled by a state officer or candidate for elective state office. State Lobbyist and Lobbying Firm Fundraisers A fundraiser held in the home of a state lobbyist is considered a contribution; therefore, a lobbyist or a cohabitant of a lobbyist is prohibited from holding a fundraiser in his or her home for a candidate seeking election to a governmental agency that the lobbyist is registered to lobby. This includes a local candidate/officeholder that is seeking election to a state office. A similar prohibition applies to lobbying firms holding fundraisers at their offices. Contributions from Foreign Governments or Foreign Principals Committees are prohibited from soliciting or accepting contributions from a foreign government or foreign principal in connection with a candidate or ballot measure in any state or local election. (52 U.S.C. Section 30118 and Government Code Section 85320 of the Act.) Fair Political Practices Commission Chapter 4 4 Campaign Manual 2 advice @fppc.ca.gov April 2016 For purposes of this prohibition, a "foreign principal" includes: *o✓ • A foreign political party. • An individual outside the United States, unless the individual is a United States citizen. • A corporation outside of the United States, unless it is organized or created by the laws of the United States or any place subject to the jurisdiction of the United States, and its principal place of business is within the United States. • A foreign partnership, association, corporation, or organization. • A domestic subsidiary of a foreign corporation if the decision to contribute or expend funds is made by an officer, director, or management employee of the foreign corporation who is not a citizen of the United States or a lawfully-admitted permanent resident of the United States. Contributions, expenditures, or independent expenditures made by a lawfully-admitted permanent resident (e.g., a "green card" holder) of the United States are permitted. 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 that are made to a significant segment of the public. For further information, contact the Attorney General's office at (800) 952-5225 or the local district attorney. The Political Reform Act prohibits the payment of public moneys, in the form of matching funds or cash subsidiaries, for the financing of elections, except for elections in charter cities and counties. In addition, laws outside the Act prohibit the use of public resources, Fair Political Practices Commission Chapter 4.5 Campaign Manual 2 advice @fppc.ca.gov April 2016 such as office equipment, staff time etc., for campaign or personal purposes. (Education Code Section 7054; Gov. Code Section 8314; using public resources for campaign purposes Penal Code Section 426; and Vargas v. City of Salinas (2009) 46 Cal is prohibited. 4th 1.) Government Code Section 54964 prohibits an officer, employee 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 outside the Act, contact the Attorney General's office at (800) 952-5225 or the local district attorney. Generally, campaign contributions received in connection with an o unncc elective office do not serve as the basis for disqualifying an official c -Three city councilmembers and two from voting on a matter affecting the contributor. However, if an county supervisors serve on elected official or candidate also holds a position on an appointed the Local Agency Formation Commission (LAFCO). Since board or commission, he or she may be restricted from soliciting or the councilmembers and receiving campaign contributions from persons with business before tsou were appointed the board or commission. He or she may be subject to Government may n commission,they y subject may not vote on a LAFCO Code Section 84308 which: issue if they have received a contribution in the last 12 months of more than $250 • Prohibits an officer from soliciting, accepting, or directing from someone who is a campaign contributions of more than $250 from any party, party, participant, or agent in participant, or agent of a party or participant, while a proceeding the proceeding. involving a license, permit, or other entitlement for use is pending before the officer's agency and for three months —n following the date of that decision. This prohibition applies even Ex 4.3 A planning commissioner serves when the contribution is for another candidate. as the treasurer for a councilmember's • Requires disclosure of all such campaign contributions and also campaign. The planning requires an official's disqualification from making decisions in solicit, accept, ordirect a certain proceedings in which the official is acting in an appointed campaign contribution of position if the official has received more than $250 in campaign more than$250 for the councilmember's campaign contributions from a party or participant within 12 months from a party, participant, or preceding the decision. agent whose proceeding is pending before the planning commission. Fair Political Practices Commission Chapter 4.6 Campaign Manual 2 advice©fppc.ca.gov April 2016 Who is Covered? Ex 4.4-Sarah is a city council Generally, appointed board members, commissioners, or individuals candidate. She also is an appointed member of the who head state or local government agencies and who make decisions city's planning commission. in proceedings involving licenses, permits, or other entitlements for Christopher has a permit request pending before use are subject to Section 84308. Common positions include: the planning commission. Under Section 84308, Sarah • Planning Commissioners is prohibited from soliciting or receiving any contribution of more than$250 from • Local Agency Formation Commission (LAFCO) members Christopher or Christopher's agent. • Members of redevelopment agencies which are not entirely comprised of elected members of the same agency Ex 4.5-Sarah wins the • Transportation Authority members election and resigns her position on the planning • Air Quality Management District members commission. Since she is now serving solely in an elected position, she is not • Waste Management Authority members required to disqualify herself from making decisions on • California Coastal Commissioners the city council by virtue of receiving contributions of more than$250 from any *too,Exempted Agencies person. Section 84308 does not apply to the following agencies: • Judicial branch • Legislature • Board of Equalization (Gov. Code Section 15626 applies) • Constitutional officers • 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 serve on the city's budget and finance committee) • 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 the city's redevelopment agency board) Fair Political Practices Commission Chapter 4. 7 Campaign Manual 2 advice @fppc.ca.gov April 2016 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. vad Fair Political Practices Commission Chapter 4.8 Campaign Manual 2 advice @fppc.ca.gov April 2016 The following Government Code sections and Title 2 regulations provide authority for the information in this chapter: Government Code Sections 82015 Contribution. 84300 Cash and In-Kind Contributions; Cash Expenditures. 84301 Contributions Made Under Legal Name. 84302 Contributions by Intermediary or Agent. 84304 Anonymous Contributions. 84307 Commingling with Personal Funds. 84308 Contributions to Officers; Disqualification. 84309 Transmittal of Campaign Contributions in State Office Buildings. 85700 Donor Information Requirements; Return of Contributions. 85701 Laundered Contributions. 85702 Contributions from Lobbyists. 85704 Prohibition on Earmarking. 2 Regulations and Opinion 18432.5 Intermediary. 18438.1 Officers and Agencies Under Government Code Section 84308. 18438.5 Aggregated Contributions Under Government Code Section 84308. 18438.6 Solicitation, Direction, and Receipt of Contributions Under Government Code Section 84308. 18438.7 Prohibitions and Disqualification Under Government Code Section 84308. 18438.8 Disclosure Under Government Code Section 84308. 18439 Definition of"Personally Deliver." 18572 Lobbyist Contributions — Making a Contribution Defined. Pelham Opinion (2001) 15 FPPC Ops. 1 Fair Political Practices Commission Chapter 4.9 Campaign Manual 2 advice @fppc.ca.gov April 2016 USE OF CAMPAIGN FUNDS The use of campaign funds by candidates, elected officials, and others 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. If an expenditure confers a substantial personal benefit on the candidate, officeholder, or any individual authorized to approve campaign expenditures, the expenditure must be directly related to a political, legislative, or governmental purpose. A substantial personal benefit means an expenditure of campaign funds which results in a direct personal benefit with a value of more than $200. The FPPC has fined committees for The following are examples of specific expenditures and the rules payments made from a regarding the use of campaign funds for such purposes. If the campaign account that were used for the following examples are not helpful, contact the FPPC for assistance about personal purposes: auto whether or not a specific use of campaign funds is permissible by care services, doctor visits, clothing, and personal life sending an e-mail with specific facts to advice @fppc.ca.gov. insurance premiums. vraiS Election Night Celebrations Costs associated with election night celebrations or similar campaign events are considered to be directly related to a political, legislative, or governmental purpose; therefore, campaign funds may be used. Attorneys' Fees Generally, attorneys' fees 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 Commission Chapter 5. 1 Campaign Manual 2 advice @fppc ca.gov April 2016 • Action to halt defamation; „4r, • Defense of an action to halt defamation; • Defense of an action for violation of state or local campaign, disclosure, or election laws; • Litigation to secure a place on the ballot or challenge the wording of the ballot pamphlet; • Contested election; • Election recount; and • 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-The candidate's expenditures from that account instead of spending personal funds for spouse buys bagels for the ...-the campaign and later seeking reimbursement from campaign funds. morning shift of volunteer However, any other individual (e.g., a volunteer or campaign worker) workera. After providing the treasurer with a receipt may make expenses from personal funds and be reimbursed, so long for bagels,the treasurer as the expenses are incurred for political, legislative, or governmental may reimburse the spouse for his expenses so long purposes and repayment is made within 45 days. An officeholder may as the reimbursement is use personal funds and be reimbursed for "officeholder" expenses. made within 45 days of the (See Chapter 8 for specific reporting rules and deadlines for L payment. 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 vehicle. Additional titleholders may not be the candidate, officeholder, treasurer, or any other person who may approve campaign expenditures, or a member of any such person's immediate family (spouse or registered domestic partner and dependent children). Additional lessees may not be the candidate, officeholder, treasurer, or r.• a member of any of these persons' immediate family. Fair Political Practices Commission Chapter 5.2 Campaign Manual 2 advice @fppc.ca.gov April 2016 1111111111111111111111.11 Automobile Expenses Campaign funds may be used to reimburse an officeholder, candidate, „,e, 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 the trip's purpose and mileage in a 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-A candidate has been asked to attend a Clothing formal event honoring the mayor. Since he does Clothing is a personal expense. The committee may not use not own a tuxedo, he may campaign funds to pay for a candidate's business or casual clothing. fundsince the event is Specialty clothing, such as formal wear worn by an officeholder or directly related to a political candidate, may be purchased with campaign funds if the use of such purpose. clothing is directly related to a political, legislative, or governmental purpose. Contributions to Other Candidates and Committees `" Ex 5.3-A fundraiser will be held to raise funds for Candidates may make contributions to other candidates and a veteran's memorial at committees unless prohibited by local rules. Contributions to certain the local civic center. The state committees are subject to limitations. committee is permitted to donate campaign funds because the payment has Donations a political, legislative, or governmental purpose. Campaign funds may be used to make donations or loans to bona fide charitable, educational, civic, religious, or similar tax-exempt, nonprofit organizations as long as the donation or loan is reasonably Ex 5.4-Your committee related to a political, legislative, or governmental purpose. In addition, would like donate funds to a homeless shelter where the donation may not personally benefit the officeholder, candidate, your spouse is a salaried committee treasurer, or any individual with authority to approve the employee. It is determined that a substantial part of expenditure of campaign funds, or any such person's immediate the proceeds would benefit family member (spouse or registered domestic partner and dependent your spouse;therefore, children). this expenditure is not permissible. Fair Political Practices Commission Chapter 5.3 Campaign Manual 2 advice @fppc.ca.gov April 2016 Equipment and Appliances Campaign funds may be used to buy, lease, or refurbish equipment Ex 5.5-When the printer breaks down,the treasurer *41.' or appliances, but only if their use is directly related to a political, goes out and buys a new legislative, or governmental purpose. As with restrictions on vehicles, one. While shopping,the treasurer finds a great buy the committee must hold title, or be the lessee, on the equipment; no on a big screen TV. While individual may be listed as owner or lessee. the printer is a permissible expense, since it will be used to communicate with the Fines, Penalties, Judgments, and Settlements voters,the television does not serve a directly-related Generally, campaign funds may be used to pay the following fines, political, legislative, or governmental purpose and, penalties, judgments, and settlements: therefore, may not be paid for with campaign funds. • 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). • Fines imposed for late filing of campaign statements and Statements of Economic Interests (Form 700). Ex 5.6-Your treasurer was But campaign funds of any amount may not be used to pay a fine, two days late in filing the penalty, judgment, or settlement relating to an improper use of committee's first preelection statement and the filing campaign funds or an action involving bribery under Penal Code officer fined the committee Section 86. $20. The committee may pay the fine with campaign funds. 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-An officeholder directly related to one of these purposes. When a candidate controlled attends a dinner sponsored by the police department committee reports itemized expenditures for gifts, meals, or travel, to honor a local good specific details must be included as described in Chapter 8. Samaritan. Since the expenditure is directly related to a governmental purpose,the campaign may pay for her attendance even if the total cost is more than NN .r `$200. Fair Political Practices Commission Chapter 5.4 Campaign Manual 2 advice©fppc.ca.gov April 2016 Future Election Campaign funds leftover after an election may be redesignated for a future election to seek the same office so long as the funds are not "surplus funds." In addition, campaign funds leftover after an election may be transferred to a new bank account for a future election to seek a different office so as the funds are not "surplus funds." There is a discussion on when leftover funds become "surplus funds" at the end of this chapter. See Chapter 11 for the other requirements that must be met in order to use the funds for election to a future office. 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 for gifts, meals, or travel, specific details must be included as described in Chapter 8. Health-Related Expenses A committee may use campaign funds to pay for health care benefits 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 Candidates are prohibited from using campaign funds to make independent expenditures to support or oppose other candidates, or to make contributions to other committees for the purpose of making independent expenditures to support or oppose other candidates. Loans Campaign funds may be used to make loans to other political committees, subject to applicable limits, if any. Transfers from a local candidate's committee to his or her state committee must be attributed Noi Fair Political Practices Commission Chapter 5.5 Campaign Manual 2 advice@fppc.ca.gov April 2016 to the original contributors. See Campaign Disclosure Manual 1 for state candidates for more information on transfers and attribution. w..w Campaign funds may also be used to make loans to bona fide charitable, educational, civic, religious, or similar tax-exempt, nonprofit organizations, so long as the loan does not personally benefit the officeholder, candidate, committee treasurer, or any individual with authority to approve the expenditure of campaign funds, or any such person's immediate family member. 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, officeholder, committee treasurer, any individual with authority to approve the committee's expenditures, 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. Refunding Contributions The return of contributions to contributors is permitted. Fair Political Practices Commission Chapter 5.6 Campaign Manual 2 advice @fppc.ca.gov April 2016 , 111_ Returning Contributions Lacking Contributor Information When a contribution of$100 or more is received in a calendar year from a single contributor, the committee must disclose the contributor's 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 The candidate or officeholder, or any individual authorized to approve the committee's expenditures, 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 Ex 5.8- Paula Greene, a member of Supervisor professional services such as an accountant, however, even if the Howard's staff, is also accountant has authority to sign committee checks. the treasurer of the Supervisor's campaign committee. Ms. Greene A spouse or domestic partner of an elected officer or a candidate for does all recordkeeping elective office may not receive, in exchange for any services rendered, for the committee and compensation from campaign funds held by a controlled committee of completes the committee's com p y campaign reports. She also the officer or candidate. has authority to approve committee expenditures. Campaign funds may be Security Systems used to pay Ms. Greene for services she provides A candidate may use campaign funds to purchase an electronic as committee treasurer. security system. To do so, the candidate must have received u may not used to o sup plemennt o or t r pay her threats to his or her physical safety because of his or her status as a (government salary. candidate or elected official and the incidents must be verified by an appropriate law enforcement agency. No more than $5,000 may be spent and a report to the FPPC is required. Ex 5.9-Candidates for the office of mayor have Tickets for Entertainment and Sporting Events been offered the chance to speak during half-time Campaign funds may not be used to purchase entertainment and at athe local Campaign funds may game. Campaign funds may sporting event tickets for use by the candidate or officeholder, or staff be used to purchase tickets of the committee, unless attendance at the event is directly related to a for the candidates and committee staff to attend, political, legislative, or governmental purpose. but only because they will be speaking. Fair Political Practices Commission Chapter 5.7 Campaign Manual 2 advice @fppc.ca.gov April 2016 Tickets to Political Fundraisers A committee may purchase tickets to political fundraisers (subject to any applicable contribution limits) for the candidate, officeholder, or his or her immediate family, or an officer, director, employee, or staff of the committee or the officeholder's governmental agency. Travel A committee may use campaign funds to pay for travel or accommodations for the candidate or officeholder, any individual with authority to approve the committee's expenditures, 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, specific details must be included as described in Chapter 8. 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. There are restrictions on how campaign funds held by an elected officeholder or candidate may be spent once the funds become "surplus." Surplus funds 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. Campaign funds held by an officeholder become surplus on the 90th day after the officeholder leaves the office for which the funds were raised, or on the 90th day after the end of the postelection reporting 411P''period following his or her defeat, whichever occurs last. Campaign Fair Political Practices Commission Chapter 5.8 Campaign Manual 2 advice @fppc.ca.gov April 2016 funds held by a non-incumbent defeated candidate become surplus on the 90th day after the postelection reporting period following the election. The end of the postelection reporting period is June 30 for elections held during the first six months 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: • Payments for outstanding campaign debts or officeholder expenses. • Refunds to contributors. • Donations to a bona fide charitable, educational, civic, religious, or similar tax-exempt, nonprofit organization, provided no substantial part of the proceeds will have a material financial effect on the candidate, on any member of the candidate's 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 a candidate for elective office. (The funds must be used for the party's or committee's overhead expenses.) • Contributions to support or oppose any candidate for federal office, any candidate for elective office in a state other than California, or any ballot measure. • Payments for professional services or attorneys' fees for litigation that arises out of campaign or election activities. • Payment for an electronic security system. Contact the FPPC for information about specific requirements that must be met. Fair Political Practices Commission Chapter 5.9 Campaign Manual 2 advice @fppc.ca.gov April 2016 Answering Your Questions A. Are there private firms that provide treasurer or campaign reporting services? Yes. The FPPC does not endorse or recommend any particular private firm. Candidates may find useful information on the websites of the California Political Attorney's Association and the California Political Treasurers Association. B. I am a candidate for a local office. It appears that I won't 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 Commission Chapter 5. 10 Campaign Manual 2 advice @fppc.ca.gov April 2016 E. As a candidate, I will be using my personal car to get around during the campaign. Is mileage considered a Notif 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 Commission Chapter 5. 11 Campaign Manual 2 advice @fppc.ca.gov April 2016 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 a future election to the same office, file a new Form 501 and amend your existing Form 410 within 90 days after the end of the postelection reporting period. For elections occurring in the first six months of the calendar year, the end of the postelection 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 different office, file a new Form 501, transfer the funds to a new campaign bank account, and file a new Form 410. If the funds become "surplus," they may not be used for a future election. Fair Political Practices Commission Chapter 5. 12 Campaign Manual 2 advice @fppc.ca.gov April 2016 1111111111111111111111111 Authority The following Government Code sections and Title 2 regulations provide authority for the information in this chapter: Government Code Sections 82025 Expenditure. 82044 Payment. 84307.5 Fundraising Payments Made to a Spouse or Domestic Partner. 85201 Campaign Bank Account. 85501 Prohibition on Independent Expenditures by Candidate Controlled Committees. 85700 Donor Information Requirements; Return of Contributions. 89511 Campaign Funds Held by Candidates and Committees. 89511.5 Use of Personal Funds for Incumbent Elected Officers. 89512 Expenditures Associated with Seeking or Holding Office. 89513 Use of Campaign Funds for Specific Activities. 89514 Use of Campaign Funds for Attorney's Fees. 89515 Use of Campaign Funds for Donations and Loans. voloo 89516 Use of Campaign Funds for Vehicle Expenses. 89517 Use of Campaign Funds for Real Property, Appliances or Equipment. 89517.5 Use of Campaign Funds for Security System. 89518 Use of Campaign Funds for Compensation. 89519 Use of Surplus Campaign Funds. Title 2 Regulations 18526 Reimbursement of Expenditures. 18570 Return of Contributions with Insufficient Donor Information. 18951 Surplus Funds. 18960 Direct Personal Benefit Defined. 18961 Incidental Use. Fair Political Practices Commission Chapter 5. 13 Campaign Manual 2 advice @fppc.ca.gov April 2016 COMMUNICATIONS *..„..Campaigns reach the voters through political communications including television, radio, and Internet advertising, mailers, billboards, precinct-walking, and flyers. The Political Reform Act (Act) requires 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. The Act also requires "paid for by" disclaimers on campaign ads 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. �* s ry � � � ' .� f Campaign In most cases, a candidate's campaign committee will be funding Communications paid • the bulk of the communications to elect that candidate to office. for by a candidate's When a candidate's campaign committee makes expenditures controlled committee to for communications in furtherance of the candidate's election, the election lection are d dandidatms own eirect campaign committee simply reports these direct expenditures. The expenditures expenditures, reported on are reported on the committee's Form 460, Schedule E, as described Form 460 Schedule E. in Chapter 8. B. ` ayrnen ' " •r, rnt ll Ca ons ®e .y 'ethers 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 coordinated with or "made at the behest" of the affected candidate, the candidate has received a nonmonetary contribution that must be reported by the candidate's controlled committee. Fair Political Practices Commission Chapter 6. 1 Campaign Manual 2 advice @fppc.ca.gov April 2016 Payments for communications expressly advocating support of or opposition to a candidate, which are not coordinated with or made at the behest of the candidate, are independent expenditures, and the affected candidate is not required to report the payments; however, 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 whether the communication "expressly advocates" support of or opposition to a clearly identified candidate or ballot measure. The information and examples below may be of assistance in making that determination. However, it is impossible to If a third party pays .• address all of the types of communications in a campaign. If presented for communications supporting or opposing the with specific facts, FPPC staff may provide assistance. election of a candidate, these may be nonmonetary Communications paid for by a candidate's controlled committee to contributions to the candidate, if coordinated support his or her own candidacy, or to oppose his or her opponent, with the candidate, or are direct campaign expenditures, not contributions or independent independent expenditures. 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. 1. Coordinated Communications - Nonmonetary Contributions When someone other than the candidate or his or her committee pays for a communication that is coordinated with or "made at the behest" of the candidate or his or her committee, the payment for the communication is a nonmonetary contribution to the affected candidate. Coordination — "Made at the Behest" A payment is coordinated with or "made at the behest" of the candidate 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 benefit the expenditure is made. Fair Political Practices Commission Chapter 6.2 Campaign Manual 2 advice©fppc.ca.gov April 2016 • 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 is coordinated or "made at the behest" of a candidate or committee if: • Committee's Needs. It is based on information about the candidate's or committee's campaign needs or plans 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 the agent's involvement in the current campaign. "Current campaign" means the period koliwe beginning 12 months prior to the date of the primary or special election in which the candidate is on the ballot for an elective office and ending on the date of the general or special runoff election for that office. • Common Consultants. The person making the expenditure retains the services of a person who provides the candidate or When a committee with professional services related to campaign or communication fundraising strategy for the current campaign. that xpres advocates support of a lc a candidate is paid for by someone other • Republication. The communication replicates, reproduces, than the candidate or his republishes, or disseminates, in whole or substantial part, a or her committee, and the communication is"made at communication, including video footage, designed, produced, the behest" of the affected paid for, or distributed by the candidate or committee. candidate,the candidate must report the payment as • Fundraising. The committee making the expenditure is a nonmonetary contribution. primarily formed to support the candidate or oppose their opponent and in the course of the current campaign, the candidate who benefits from the expenditure solicits funds for or appears as a speaker at a fundraiser for the committee making the expenditure. Fair Political Practices Commission Chapter 6.3 Campaign Manual 2 advice @fppc.ca.gov April 2016 • 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 on the candidate's or officeholder's staff within the current `" ` campaign. • Candidate's Family. 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. However, an expenditure is not considered to be coordinated 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. • Photograph or Press Release. The person making the expenditure has obtained a photograph, biography, position paper, press release, or similar material from the candidate or the candidate's agents. mid • General Request for Support. The person makes the expenditure in response to a general, non-specific request 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. • Meeting with Members or Employees. The person making the expenditure has invited the candidate or committee representative to make a public appearance before the person's members, 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 Commission Chapter 6.4 Campaign Manual 2 advice @fppc.ca.gov April 2016 • Expenditure Benefits Another Candidate or Committee. The expenditure is made at the request or suggestion of the '' candidate or committee for the benefit of another candidate or committee. • Hyperlink. The communication includes a hyperlink to the Internet website or other social media page of a candidate or ballot measure committee. FPPC Regulation 18225.7, summarized above, specifies when a communication is considered independent versus made at the behest of a candidate or committee. Because the determination is based on specific facts, persons are encouraged to contact the FPPC for guidance. 2. Independent Expenditures An independent expenditure is a payment for a communication that: • Expressly advocates the election or defeat of a clearly identified candidate or the qualification, passage or defeat of a clearly identified measure, and • The communication is not coordinated with or "made at the behest" of the affected candidate or committee. Clearly Identified Candidate A communication clearly identifies a candidate when it uses the candidate's name, photograph, or status as a candidate or officeholder. If a communication includes a group of candidates and refers to some well-defined characteristic of the group, the candidates are clearly identified even if it does not use specific names. omw Fair Political Practices Commission Chapter 6.5 Campaign Manual 2 advice @fppc.ca.gov April 2016 111111111111 Express Advocacy A communication expressly advocates support of or opposition to a When a clearly identified candidate under the following scenarios: communication that expressly advocates support of a candidate is • Magic Words. The communication uses words such as "vote not"made at the behest" of for," "elect," "support," "cast your ballot," "vote against," "defeat," the affected andieatd,the payment is considered an or "reject." independent expenditure and the candidate does • Unambiguously Urges. The communication is made within not report the payment. The person making the 60 days prior to an election, it refers to a clearly identified payment may have reporting candidate, and when taken as a whole, it unambiguously obligations. urges a particular result in an election. The message must be susceptible of no reasonable interpretation other than as an appeal to vote for or against a specific candidate. 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-An individual paid $4,000 for a newspaper ad stating"Vote for Autumn `" Gomez." The communication expressly advocates support for a clearly identified candidate and must be reported either as a contribution if it was made at the candidate's behest or as an independent expenditure if it was not made at the candidate's behest. Later,the same individual paid $2,000 for post card-sized flyers that simply stated, "Vote on Election Day." This communication is not reported as a contribution or independent expenditure because it did not expressly advocate (support of or opposition to a candidate or measure. Ex 6.2- Friends of Gomez, a non-candidate controlled committee primarily 1 formed to support Autumn Gomez's candidacy, printed campaign literature stating, "Vote for Autumn Gomez." The communication included a copy of a photograph the committee obtained from the public information counter at Ms. Gomez's campaign headquarters. Ms. Gomez did not in any way coordinate with the committee in producing the campaign literature. Therefore,the committee made an independent expenditure, not a contribution to Ms. Gomez's campaign. On the other hand, if the committee contacted Ms. Gomez and arranged for a professional photographer to meet with her for the purpose of taking photographs for the mailer,the committee would be making a nonmonetary Icontribution to her campaign. Fair Political Practices Commission Chapter 6.6 Campaign Manual 2 advice @fppc.ca.gov April 2016 Ex 6.3- During Curt Anthony's campaign,two newspaper advertisements supporting Mr.Anthony were published without his knowledge or consent. Since the payments for these communications were not coordinated with him or made at his behest,they were independent expenditures by the person(s) funding the ads and were not reportable by Mr.Anthony's campaign. The Iperson(s) who paid for the ads may have a filing obligation. 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-The president of a official. As long as the communication does not advocate the election police officers' association of the endorsing official (or the defeat of that official's opponent), a announces at its annual meeting that the association payment made to communicate the endorsement is not a contribution endorses John Law for to the endorsing candidate or official, even though the endorsement county sheriff. Merely making an oral endorsement *sir,was made at the behest of both individuals. is not a contribution to or independent expenditure for If a candidate pays for a communication supporting his or her own John Law. candidacy that also supports or opposes a ballot measure, the Closer to the election, at payment is not a contribution or independent expenditure made in the request of candidate John Law,the association connection with the ballot measure. mails a special flyer to the voters announcing its If a candidate pays for a communication that supports another the mailing was wa s him. Since the ms made at the candidate, and the payment is not made at the behest of the endorsed behest of the candidate,the candidate, the payment is not considered to be an independent association has now made a nonmonetary contribution expenditure if: (1) the candidate paying for the communication also to John Law. is included in the communication; (2) the non-paying candidate is listed on the same ballot as the paying candidate; and (3) the communication is targeted only to potential voters in the paying candidate paid for or a mailing candidate's district. which quoted the mayor's verbal endorsement of his candidacy. Although the mayor was also on the ballot,the flyer was not a contribution to the mayor. Fair Political Practices Commission Chapter 6.7 Campaign Manual 2 advice @fppc.ca.gov April 2016 Ex 6.6- Emmelyn Chin, a city council member running for reelection, sent out a flyer to registered voters in her district asking them to support her candidacy. The flyer also encouraged the voters to vote for Lorraine Sweet for Governor, although this endorsement was not made at Ms.Sweet's behest. Because the gubernatorial election and city council election would appear on the same ballot for those living in Ms. Chin's district(and the flyer was sent only to voters in that district),the payment for the flyer is not an independent Lexpenditure. Social Media — Internet Communications See Chapter 7 for the • Paid Advertisements on the Internet. A paid advertisement that a disclaimer and sender candidate or committee places on the Internet is reportable under the i requirements by fodentification by Act. A candidate or committee that pays to place a communication on a candidate-controlled another person's website must report the expenditure on a campaign committee or a committee primarily formed to support statement. Similarly, a candidate must report a payment to purchase or oppose a candidate. e-mail addresses or any payment for general or public advertisements on Internet sites. Uncompensated Individuals' Internet Activity. When an individual Ex 6.7-John is running who is not compensated by a candidate or committee sends for State Assembly and his neighbor George communications over the Internet (e.g., e-mails, social networking, posts his support for blogging, website postings, and hyperlinks) that support or oppose John's candidacy on Facebook. In his Facebook a candidate or measure, these activities do not constitute reportable post, George includes a contributions or expenditures. Regulation 18215.2 creates a "safe picture of John that he harbor' for uncompensated individuals' political activity on the Internet. got from John's webs is e. i The communication on is not reportable because Paid Blogger. The safe harbor for an individual's uncompensated George was not paid for his Facebook post. 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 apply to a blogger who receives a majority of his or her advertisement local al office and is she pays for local office and she pays Julia revenue from a single candidate or committee because he or she is to post a message on Julia's not considered to be providing uncompensated personal services. bldg supporting Camille's candidacy. Camille's committee must report the . . payment as an expenditure D. can-Corgi +� (91��tu. �., (on the Form 460. There are some communications that are not considered to be contributions to the candidate or the candidate's controlled committee. Fair Political Practices Commission Chapter 6. 8 Campaign Manual 2 advice @fppc.ca.gov April 2016 Debates Ex 6.9-The League of ,,,,,,If a nonpartisan organization hosts a debate or other forum and invites Women Voters invited all candidates for city council at least two opposing candidates, a payment for the event is not a to speak at a forum. Only contribution to the candidates. one candidate attended, but since at least two candidates running for the same office Similarly, a payment for a debate or forum sponsored by a political were invited,the cost of the party or a committee affiliated with a political party is not a contribution forum is not a contribution to the candidate who if a majority of the candidates for the party's nomination are invited to attended. participate. Meetings Ex 6.10-At a union's regularly-scheduled monthly A payment made by a bona fide service, social, business, trade, meeting, one candidate union, or professional organization for reasonable overhead expenses was invited to solicit associated with a regularly-scheduled meeting at which a candidate votes. The union did not incur any additional costs speaks is not a contribution if the organization pays no additional costs in connection with the in connection with the speaker's attendance. speaker's presentation,so no contribution was made. Non-Political Communications 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 contain express advocacy; • Does not refer to the candidate's election campaign, or his or her opponent's qualifications for office; and • Does not solicit contributions to the candidate or to third persons for use in support of or opposition to the candidate. Nkkiw Fair Political Practices Commission Chapter 6.9 Campaign Manual 2 advice @fppc.ca.gov April 2016 Member Communications Ex 6.11-Your campaign Payments made by an organization or its sponsored committee consultant asks a labor organization to send a for a communication that supports or opposes a candidate are not mailing supporting your contributions or expenditures as long as the communication is made election. The mailing will be sent only to the only to the organization's members, employees, or shareholders, organization's membership. or the families of its members, employees, or shareholders. The mailing is not a The payments may not be for general public advertising, such contribution to you. Later, the campaign consultant as billboards, newspaper ads, or radio or television ads. If the asks the organization to send organization's sponsored committee makes the payments, the the mailing to all registered voters in your district. The committee would report the payments as being made for general mailing to the voters is a member communications. L.contribution to you. 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 distributed only to the party's members, employees, Ex 6.12-The Green Party and families of its members and employees. The party must report pays for a mailing supporting the payments, however, as if they were contributions or independent your candidacy to all of its members five days before expenditures. your election. The cost of the mailing exceeds$1,000. News Stories The Party must file a Form 497 (24-hour Contribution Report). You are not A payment for the cost of publishing or broadcasting a news story, required to disclose the commentary, or editorial is not a contribution when the payment is mailing as a contribution. 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-At the behest A payment made at the behest of a candidate as part of voter of an elected official, an registration or get-out-the-vote activities is not a contribution if the organization paid for a voter registration booth at a local communication does not expressly advocate support of or opposition fair. No other literature was to the candidate. distributed at the booth. The payment for the voter registration booth was not a Voting Records contribution to the official. An entity may publish the voting records of public officials. As long as only the voting records are published, the communication is not considered a contribution or an independent expenditure. Fair Political Practices Commission Chapter 6. 10 Campaign Manual 2 advice @fppc.ca.gov April 2016 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? No. An "independent expenditure" is made without the coordination, cooperation, or consultation of the candidate. If you assist the committee, the expenditures are not considered independent. Fair Political Practices Commission Chapter 6. 11 Campaign Manual 2 advice @fppc.ca.gov April 2016 D. I am a law enforcement officer running for city council. Is it permissible to wear my law enforcement uniform in my campaign literature? The Political Reform Act does not contain restrictions related to a candidate wearing a law enforcement uniform; however, other laws may apply. Candidates should contact the District Attorney or City Attorney. The following Government Code sections and Title 2 regulations provide authority for the information in this chapter: Government Code Sections 82015 Contribution. 82025 Expenditure. 82031 Independent Expenditure. 82044 Payment. 82047 Person. 84211 Contents of Campaign Statement. 84310 Identification Requirements for Telephone Calls. 84503 Advertisement for or Against Ballot Measures. 84506 Independent Expenditures; Advertisements. 85312 Communications to Members of an Organization. Title 2 Regulations 18215 Contribution. 18215.2 Uncompensated Internet Activity by Individuals that is not a Contribution or Expenditure. 18225 Expenditure. 18225.7 Made At the Behest of. 18450.1 Definitions. Advertisement Disclosure. 18531.7 Payments for Communications — Section 85312. voi Fair Political Practices Commission Chapter 6. 12 Campaign Manual 2 advice @fppc.ca.gov April 2016 ADVERTISEMENT DISCLAIMERS This chapter describes the disclaimers required by the Political Reform Act (Act) on mass mailings and 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 message that identifies the person or entity who paid for or authorized the communication. The basic disclaimer for most communications is "paid for by [committee name]." The disclaimer ensures that the committee paying for the ad is identified. The Act does not regulate the truth or accuracy of political communications given that the First Amendment provides broad protection for political speech. Disclaimer Example: z Paid for by ` Manuel Alvarez for Mayor 20XX # � x P.O. Box 1744 -. .'` kmont,CA 95 • Manuel Alvarez for Mayor Candidate Controlled Committees Under the Act, a candidate controlled committee must include a disclaimer on mass mailings and certain telephone calls advocating the candidate's own election. In addition, radio and television advertisements require a "paid for by" disclaimer or sponsor identification under Federal Communications Commission (FCC) rules. The Act does not require a specific disclaimer on other communications, such as billboards and yard signs, when they are paid for by a candidate controlled committee in support of the Fair Political Practices Commission Chapter 7. 1 Campaign Manual 2 advice @fppc.ca.gov April 2016 candidate's own campaign. However the FPPC recommends placing "paid for by [committee name]" and the committee's ID 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: • Mass mailings, including e-mails • Paid telephone calls • Radio ads • Television ads • Electronic media ads • Newspaper ads • Billboards Check with your local elections office for rules on the placement of • Yard signs campaign signs and any local advertisement disclaimer • Door hangers rules. Also check the rules on placing temporary • Flyers political signs in California's Outdoor Advertising Act Sec. Posters 5405.3, on the Department • of Transportation's website. 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 Commission Chapter 7.2 Campaign Manual 2 advice©fppc.ca.gov April 2016 • Skywriting and airplane banners *too' • Committee checks and receipts Disclaimers on political ads must be clear and conspicuous 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, and the amount of time the disclaimer is required to appear on screen. and'idate Comm ttees for heir own Election The disclaimer on a communication made by a candidate's committee for his or her own election must include "paid for by [committee name]," unless otherwise noted in the chart below. Communication Manner of Display All mass mailings- more than 200 sent • Candidate's committee name/address(as on file with Form 410) within a calendar month (including on outside of mailing(if no Form 410 on file, use candidate name/ emails and faxes) address) • Only committee name (no address) required on electronic messages • "Paid for by" must be in the same color and size as the name/address and immediately in front of or above the name/address • If sent by more than one candidate/committee: Also on at least one insert in the mailing • No less than 6 point type/contrasting print color • Return envelopes (if included in solicitation)—committee's name, address and ID number are recommended but not required wr+ Fair Political Practices Commission Chapter 7. 3 Campaign Manual 2 April 2016 advice @fppc.ca.gov Telephone calls advocating candidate's • Any time during the message own election (500 or more)- made by: • Must identify the candidate that paid for the call or an organization ,,, i • Vendors ("robo" calls) or authorizing the call that files campaign reports • Paid individuals other than the • Must state that the call is"paid for by" or"authorized by"the candidate, campaign manager or identified candidate or organization volunteers Examples: This call was paid for by City Council Member Jones; This call was authorized by(name of committee) • No ID required on telephone calls personally dialed by candidate, campaign manager or volunteers The Political Reform Act does not require a specific disclaimer on the following communications paid for by a candidate's campaign committee in support of his or her own campaign,although the FPPC recommends placing "paid for by committee name"and the committee ID number on all public campaign materials. Newspaper, radio and television ads • Radio and television advertisements require "paid for by" or sponsor identification under FCC rules • Check the Elections Code for newspaper ad requirements Electronic media • "Paid for by committee name" and committee ID number are (Websites, blogs,Twitter feeds,faxes, recommended but not legally required social media pages-e.g., Facebook) Billboards,yard signs, business cards, • "Paid for by committee name" and committee ID number are door hangers,flyers,and posters recommended but not legally required Fair Political Practices Commission Chapter 7.4 Campaign Manual 2 advice @fppc.ca.gov April 2016 -_,■ i y 44,441,44°A, v .r*'fi,s ?c2 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 all of the following, unless otherwise noted: • "Paid for by [committee name]"; • A list of the committee's top two donors of$50,000 or more during the 12-month period prior to the expenditure, if any; and • The following statement: "This advertisement was not authorized or paid for by a candidate for this office or a committee controlled by a candidate for this office." Communication Manner Display All mass mailings- more than 200 sent • Committee name/address (on file with Form 410 or 461)on within a calendar month outside of mailing in no less than 14-point, bold, sans serif type (see note) • "Paid for by" must be in the same color and size as the name/ '4110r address and immediately in front of or above the name/address • IE disclaimer in box. The required statement("[t]his advertisement was not authorized or paid for by a candidate for this office or a committee controlled by a candidate for this office") must be located one quarter of an inch from the recipient's name and address in a box. The box's outline must have a 3.25 line weight. So the statement is clearly readable, contrasting colors must be used for the background of the ad and the box outline, text and background Telephone calls- more than 200 • Disclaimer must state that the call is"paid for by" committee name made by vendors ("robo"calls) or paid individuals • Must be at least 3 seconds either at the beginning or end of the call Radio • Must be at least 3 seconds either at the beginning or end of the ad Television • Both written and spoken at the beginning or end of ad • Not less than 4 seconds • Size and contrasting color must be legible to average viewer • Exception - no spoken disclosure required if written statement is shown for at least 5 seconds on a 30 second broadcast or 10 seconds on a 60 second broadcast Fair Political Practices Commission Chapter 7.5 Campaign Manual 2 advice @fppc.ca.gov April 2016 Electronic Media 1. Websites, blast e-mails and 1. Disclaimer statement must be in the same font size as majority of Facebook posts text and displayed conspicuously near the ad 2. Ads of limited size 2. Ad must provide disclaimer via rollover, link, or other connection (micro bar, button ad, ads limited to website with the disclaimer to 500 characters or less) 3. SMS texts 3. Include the committee ID number and if technically possible link to the committee's campaign statement on Secretary of State's website 4. Electronic ads sent in an audio 4. Same requirements as for radio ads above format 5. Electronic ads sent in a video 5. Same requirements as for television ads above format Newspaper Ads • 14-point, bold, sans serif type in contrasting color • Also check the Elections Code A Billboard • 5%of height of advertisement in contrasting color Yard Signs(more than 200) Door hangers,flyers, posters,and • 14-point, bold, sans serif type in contrasting color oversized campaign buttons and bumper stickers (buttons 10" across or larger and stickers 60 sq inches or larger) (all more than 200) Note: Two display rules exist for mass mailings paid for by an independent expenditure. A mass mailing must have the committee name and address on the outside of an envelope in 6-point type; while the manner of display for the ad disclaimer requires the committee name in no less than 14-point, bold, sans serif type. A one-page mailer may combine the display rules with both the committee name and address in no less than 14-point, bold, sans serif type although the address may be at 6-point type. Fair Political Practices Commission Chapter 7.6 Campaign Manual 2 advice @fppc.ca.gov April 2016 Disclaimer Example: Paid For By Public Safety Workers and Educators to Re-Elect Supervisor Woods 20XX, Major Funding by International Workers Association h P.O. Box 505 Sacramento, CA 95825 Jayne Brown .a_ sN 4225 Main Street lone CA 95640 *owe . ass ac 4- - - ® `6 • y a is A"mass mailing" is made when more than 200 substantially similar The committee pieces of mail have been sent within a calendar month. A mass ID number is not mailing also includes more than 200 substantially similar messages required to be included on mass mailings, but distributed to the public within a calendar month through electronic the FPPC recommends mail ("e-mail"). Solicitation letters, notices of fundraising events, that committees include newsletters sent by the candidate or committee, and other types of ID number committee name and Nome yp ID number on all public campaign literature are common types of mass mailings. campaign materials. Fair Political Practices Commission Chapter 7.7 Campaign Manual 2 advice @fppc.ca.gov April 2016 E-Mail Disclaimers E-mails must include the committee's name and the words "paid for by" immediately adjacent to and above, or immediately adjacent to and in front of, the required identification. 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 background). From: Rreynolds @yahoo.com To: Voterl @gmail.com Cc: Subject: Reynolds for City Council 20XX Don't forget to vote for Reynolds on Tuesday! This message was paid for by Reynolds for City Council 20XX. Postal Mailing Disclaimers A mass mailing sent by a candidate controlled committee must include the words "paid for by" immediately adjacent 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 background). A post office box may be used as the address only if the committee's street address is on its Statement of Organization (Form 410) on file with the Secretary of State. Paid For By Roxie Reynolds for City Council 20XX 1615 Skate Street �'.::W. Torrance, CA 90503 Jordan Cooper 315 S. Fairfield Street Torrance, CA 90503 NoliO Fair Political Practices Commission Chapter 7. 8 Campaign Manual 2 advice @fppc.ca.gov April 2016 Mailings Sent by More than One Candidate Controlled Committee .r.04 f"Ttxla A mass mailing sent by more than one candidate controlled committee If two or more must include the words "paid for by immediately adjacent to and c cont committees pay yolled equally for above, or immediately adjacent to and in front of, the name and a mass mailing,the names address of the committee that is paying the greatest share of the and addresses of each of the committees must appear on mass mailing including costs for designing, printing, and postage. This at least one insert. 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 disclaimers on a blue background). A post office box may be used as the address only if the committee's street address is on its Statement of Organization (Form 410) on file with the Secretary of State. Committees Primarily Formed to Support or Oppose a Candidate A mass mailing paid for by a primarily formed committee as an independent expenditure supporting or opposing a candidate must include the words "paid for by" immediately adjacent to and above, or immediately adjacent to and in front of, the name and address of the committee. It must also include the following statement: "This advertisement was not authorized or paid for by a candidate for this office or a committee controlled by a candidate for this office." Two display rules exist for mass mailings paid for by an independent expenditure. The committee name must appear in no less than 14-point, bold, sans serif type, but the address required on the outside of the envelope may appear in 6-point type. For a one-page mailer, committees may combine the display rules and use 14-point, bold, sans serif type for both the committee name and address even though the address may be displayed in 6-point type. The disclaimer must also list the committee's top two contributors of A mass mailing paid $50,000 or more during the 12-month period prior to the expenditure, for by an independent expenditure must include a if any. If the committee can show that contributions received from the statement that the mailing two highest contributors have been used for expenditures unrelated was not authorized by a candidate or a committee to the candidate featured in the communication, the committee controlled by a candidate. Now may disclose the contributors making the next largest cumulative contributions of$50,000 or more. Fair Political Practices Commission Chapter 7.9 Campaign Manual 2 advice @fppc.ca.gov April 2016 Recordkeeping for Mass Mailings For each mass mailing, the following information must be retained in the committee's records for a period of four years: • A sample of the mailing; • A record of the date of the mailing; • The number of pieces sent; and • The method of postage used. e. • this Calls Made by Candidate Controlled Committees for their own Election If a candidate controlled committee pays for 500 or more similar telephone calls made by vendors ("robo" calls) or paid individuals advocating the candidate's own election, the name of the organization that authorized the call must be disclosed to the recipient of the call. If the organization authorizing the call does not have filing obligations under the Act, the name of the candidate that paid for the call must be disclosed to recipients. The disclosure must include the words "paid for by" or "authorized by." The disclaimer is not required for telephone calls personally dialed by the candidate, campaign manager, or volunteers. Calls Made by Committees Primarily Formed to Support or Oppose a Candidate Anonymous robocalls • are a violation of If a primarily formed committee pays for more than 200 similar the Act. Committees are telephone calls that expressly advocate support for or opposition to a prohibited from contracting candidate, the name of the committee must be disclosed to recipients. w get for political calls ith thaendt does not disclose The disclosure must include the words "paid for by" or "authorized who paid for or authorized by." If the call is an independent expenditure, the disclaimer must the calls. also include the following statement: "This advertisement was not authorized or paid for by a candidate for this office or a committee controlled by a candidate for this office." The disclaimer must also include the committee's top two contributors of$50,000 or more during the 12-month period prior to the expenditure, if any. , Fair Political Practices Commission Chapter 7. 10 Campaign Manual 2 advice @fppc.ca.gov April 2016 11111111111111111111111 Ex 7.1-City Councilmember Reitz pays a vendor to make calls to 1,500 1 local voters to encourage them to reelect her to the city council. The disclaimer must state that the telephone calls were paid for by the candidate's committee. For example, "[t]his call was paid for by Reelect City (Councilmember Reitz 20XX." Ex 7.2-At City Councilmember Reitz's request, Citizens for Better Schools (a general purpose committee) pays a vendor to make calls to 1,500 local voters to encourage them to reelect Councilmember Reitz to the city council. The disclaimer must identify the committee paying for the call or the candidate authorizing the call. For example, "[t]his call was paid for by Citizens for Better Schools" or"[t]his call was authorized by Councilmember Reitz." 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. The Act does not require a specific disclaimer on electronic media ads, including websites, Internet ads, and mobile ads paid for by a candidate's committee for his or her own election. However, the FPPC recommends placing "paid for by [committee name]" and the committee ID number on all public campaign materials. Committees primarily formed to support or oppose a candidate making independent expenditures for electronic media ads are subject to the "paid for by [committee name]" requirement and additional disclaimer requirements as described in the chart earlier in this chapter. In general, the required disclaimer must be displayed in full. For example, a Facebook post must include the full disclaimer. Fair Political Practices Commission Chapter 7. 11 Campaign Manual 2 advice @fppc.ca.gov April 2016 An abbreviated disclaimer may be used in electronic media messages only if it is impracticable or extremely difficult to include the full disclaimer information (such as severe size, space, or character-limits — constraints) and when other methods of displaying the information (such as a rollover display or click through to a webpage with disclosure information) are not available. For example, an abbreviated disclaimer may be used if a campaign sends blast text messages to voters. The Act does not require a specific disclaimer on newspaper, radio, and television ads paid for by a candidate's committee for his or her own election. However, the FCC requires that radio and television ads include "paid for by" or sponsor identification. 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 the "paid for by [committee name]" disclaimer and other requirements as described in the chart earlier in this chapter. For newspaper ad requirements, candidates and , committees should also check the Elections Code. Generally, candidate controlled committees and primarily formed committees spend campaign funds only in connection with the candidate's election. However, there may be times when a committee wants to pay for an advertisement to support or oppose a ballot measure. The Act requires specific disclosure when any committee uses a paid spokesperson in an advertisement to support or oppose a ballot measure. The committee must (1) file a Paid Spokesperson Report, Form 511, for an individual's appearance in a ballot measure advertisement and (2) include a disclaimer on the ad in the following situations. vie Fair Political Practices Commission Chapter 7 12 Campaign Manual 2 advice @fppc.ca.gov April 2016 $5,000 payment to an individual in an ad: The committee makes expenditures totaling $5,000 or more for an individual's appearance in an advertisement to support or oppose the qualification, passage or defeat of a state or local ballot measure. Disclaimer on ad: "(Spokesperson's name) is being paid by this campaign or its donors." Any payment to an individual in an ad portraying a professional (nurse, doctor, firefighter, scientist, engineer, lawyer, etc.): The committee makes expenditures of any amount to an individual for his or her appearance in an ad supporting or opposing the qualification, 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 licensure, certification, or other specialized, documented training to engage in that occupation. Disclaimer on ad: "Persons portraying members of an occupation in this advertisement are compensated spokespersons not necessarily employed in those occupations." Now, 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 of the individual's license or certification for the occupation. Upon request from the FPPC, the committee must provide documentation of an individual's occupation by electronic means within 24 hours. If the committee pays for a spokesperson in an advertisement to support The advertisements include print, television, and radio ads, as well or oppose a ballot measure, the committee may also be as telephone messages. The disclaimers on the ads must be shown required to file the Form 511 in highly visible font for print or television ads, or spoken in a clearly (Paid Spokesperson Report). See Chapter 10. audible manner for radio ads or telephone messages. Advertisement disclaimers must be revised if a committee's name changes or there is a new $50,000 donor. Television, radio, electronic media, or "robo" calls must be amended within five calendar days. 'taw Print media, mass mailings, or other tangible items must be amended every time an order to reproduce is placed. Fair Political Practices Commission Chapter 7. 13 Campaign Manual 2 advice @fppc.ca.gov April 2016 111111111111111111M Altrirt K. Penalties Failure to comply with the Act's disclaimer requirements may result in fines of up to $5,000 per violation. In addition, any person who violates the disclaimer requirements for ballot measure and independent expenditure advertisements may be liable for fines of up to three times the cost of the advertisement, including placement costs. 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 candidate's campaign consultant. What disclaimers are required, if any? The Act does not require a disclaimer for these advertisements since they are not independent expenditures. The primarily formed committee must provide the candidate with the value of the advertisements and both committees must report the amount as a nonmonetary contribution. Fair Political Practices Commission Chapter 7. 14 Campaign Manual 2 advice @fppc.ca.gov April 2016 C. If a business entity includes a copy of a candidate's flyer in its regular monthly mailing, is the candidate required to be Swap" identified on the outside of the mailer? No. The candidate's name and address must be identified on the flyer only. 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 committee's Statement of Organization (Form 410) on file with the Secretary of State may be used. E. A committee pays for a candidate's mailing as a nonmonetary contribution. Must the committee paying for the mailing or the candidate's committee be identified on the outside of the mailing? The committee that pays for the mailing must be identified on the outside of the mailing. F. If a committee is sending a postcard-type mailing, may the name of the committee appear only once? Yes. The name must appear only once. The committee's address must also be included. G. Where on the outside of the mailing must the candidate or committee identification be placed? There is no specific requirement for the location of the sender identification as long as it appears on the outside of the mailing. The words "paid for by" must be immediately adjacent to and above, or immediately adjacent to and in front of, the committee name and address. Fair Political Practices Commission Chapter 7. 15 Campaign Manual 2 advice@fppc.ca.gov April 2016 The following Government Code sections and Title 2 regulations ""S provide authority for the information in this chapter: Government Code Sections 82031 Independent Expenditure. 82041.5 Mass Mailing. 82044 Payment. 82047 Person. 84305 Requirements for Mass Mailing. 84310 Identification Requirements for Telephone Calls. 84506 Independent Expenditures; Advertisements. 84511 Ballot Measure Ads; Paid Spokesperson Disclosure. 85312 Communications to Members of an Organization. Title 2 Regulations 18215 Contribution. 18225 Expenditure. 18225.7 Made At the Behest of. 18401 Required Recordkeeping for Chapter 4. 18435 Definition of Mass Mailing and Sender. 18440 Telephone Advocacy. 18450.1 Definitions. Advertisement Disclosure. 18450.4 Content of Disclosure Statements. Advertisement Disclosure. 18450.5 Amended Advertising Disclosure. 18450.11 Spokesperson Disclosure. 18523.1 Written Solicitation for Contributions. 18531.7 Payments for Communications — Section 85312. Fair Political Practices Commission Chapter 7. 16 Campaign Manual 2 advice @fppc.ca.gov April 2016 COMMITTEE REPORTS - FORM 460 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 with an overview of the committee's activity, including money coming in and money going out, during a specified reporting period. The statement must include all activity during the specified reporting 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 reported on the committee's next Form 460. A primarily formed committee may file the Form 450 (Committee Campaign Statement— Short Form) instead of the Form 460 if, during the reporting period, the committee: `"*0°' • Has not received a contribution that must be itemized (a cumulative amount of$100 or more from a single source); • Has not received any other payment of$100 or more (miscellaneous increases to cash); • Has no outstanding loans made or received; and • A committee • Has no accrued expense (unpaid bills). controlled by a candidate must use the Form A primarily formed committee that has not received any contributions 460 to report its campaign activity—the short Form and has not made any expenditures during the six-month period 450 or Form 425 may not be covered by a semi-annual statement may file the Form 425 used. (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 425 are available on the FPPC's website and include detailed instructions for completing the forms. Nor Fair Political Practices Commission Chapter 8. 1 Campaign Manual 2 advice @fppc.ca.gov April 2016 COVER PAGE Recipient Committee p Type or print in ink. Date Stamp Campaign Statement CALIFORNIA A 60 Cover Page FORM �} (Government Code Sections 84200-84216.5) Page XX of Statement covers period CIL of election if applicable: 7/1/XX (Month,Day,Year) For Official Use Only from IPE INSTRUCTIONS ON REVERSE through 12/31/XX Type of Recipient Committee: All Committees-Complete Parts 1,2,3,and 4. ©. Type of Statement: Officeholder,Candidate Controlled Committee ❑ Primarily Formed Ballot Measure ❑ Preelection Statement ❑ Quarterly Statement o State Candidate Election Committee Committee ® Semi-annual Statement ❑ Special Odd-Year Report o Recall 0 Controlled ❑ Termination Statement (Also Complete Part 5) 0 Sponsored (Also file a Form 410 Termination) (Also Complete Part 6) ❑ General Purpose Committee ❑ Amendment(Explain below) o Sponsored ❑ Primarily Formed Candidate/ o Small Contributor Committee Officeholder Committee 0 Political Party/Central Committee (Also Complete Part 7) °Committee Information D NUMBER Treasurer(s) 12344XX COMMITTEE NAME OR CANDIDATES NAME IF NO COMMITTEE) NAME OF TREASURER Manuel Alvarez for Mayor 20XX Madeline Richards MAILING ADDRESS 225 Presley Street STREET ADDRESS(NO P0.BOX) CITY STATE ZIP CODE AREA CODE/PHONE 225 Presley Street Oakmont CA 95443 707-555-6868 CITY STATE ZIP CODE AREA CODE/PHONE NAME OF ASSISTANT TREASURER,IF ANY Oakmont CA 95443 707-555-6868 Manuel Alvarez MAILING ADDRESS(IF DIFFERENT)NO.AND STREET OR PO.BOX MAILING ADDRESS P.O.Box 1744 225 Presley Street CITY STATE ZIP CODE AREA CODE/PHONE CITY STATE ZIP CODE AREA CODE/PHONE Oakmont CA 95434 707-555-6868 Oakmont CA 95443 707-555-6868 OPTIONAL'. FAX/E-MAIL ADDRESS OPTIONAL. FAX/E-MAIL ADDRESS O707-555-6869/mrichards @oakmontmail.com 707-555-6869/mrichards @oakmontmail.com Verification I have used all reasonable diligence in preparing and reviewing this statement and to the best of my knowledge the information contained herein and in the attached schedules is true and complete.I certify under penalty of perjury under the laws of the State of California that the foregoing is true and correct. Executed on [Date Required] By [Signature Required] Date Signature at Treasurer or Assistant Treasurer Executed on [Date Required] By [Signature Required] Date y Signature of Controlling Oficeholder,Cantitlate,St ate Measure Proponent or Responsible Oficer of Syoosor Executed on-_.- By Date Signature of Controlling Oaiceholder,Candidate,State Measure Proponent Executed on By Date Signature of Controlling Officeholder,Candidate,State Measure Proponent FPPC Toll-Free Helpline:866/ASK-FPPC(866/275-3772) State of California 0 Statement Covers Period If this is the first statement of the calendar year, the "from" date should be January 1. Otherwise, this date should be the day after the closing date of the most recently filed campaign statement. The closing date depends on the type of statement being filed (e.g., semi-annual, preelection). The period covered will be identified on the filing schedule for the specific election. 0 Date of Election When filing a preelection statement in connection with an election, provide the date of the election. Fair Political Practices Commission Chapter 8.2 Campaign Manual 2 advice @fppc.ca.gov April 2016 O Type of Recipient Committee y.. Check the appropriate box to indicate the type of committee: • Officeholder/Candidate Controlled Committee: Complete Cover Page Parts 1, 2, 3, 4, and 5. • Primarily Formed Candidate/Officeholder Committee: Complete Cover Page Parts 1, 2, 3, 4, and 7. O Type of Statement Check the appropriate box to indicate the type of statement being filed (e.g., semi-annual, preelection). O Committee Information and Treasurer(s) This entire section must be completed and should include the same information as provided on the committee's most recently filed Statement of Organization (Form 410). If the committee has not yet received an identification number from the Secretary of State, enter "pending" in the "I.D. Number" box. lotuir O Verification All campaign statements are signed under penalty of perjury and must be verified by the committee treasurer or the assistant treasurer named on the committee's Statement of Organization (Form 410). The verification states that the signer has used all reasonable diligence in its preparation, and that to the best of his or her knowledge, it is true and complete. The Form 460 is not considered filed if it is not signed. If an officeholder or candidate controls the committee, he or she also must sign the verification. If two or three officeholders or candidates control the committee, each of them must sign the verification. If more than three officeholders or candidates control the committee, one may sign the verification on behalf of the others. Some local agencies may require local candidates and committees to file campaign statements electronically. The electronic filing system r,.must include a procedure for filers to comply with the requirement that they sign the statements under penalty of perjury. Fair Political Practices Commission Chapter 8.3 Campaign Manual 2 advice @fppc.ca.gov April 2016 =_11,111■ Type or print in ink. COVER PAGE-PART2 Recipient Committee CALIFORNIA Campaign Statement FORM 46� Cover Page—Part 2 °Officeholder Page XX of XX or Candidate Controlled Committee 6 •rimarily Formed Ballot Measure Committee NAME OF OFFICEHOLDER OR CANDIDATE NAME OF BALLOT MEASURE Manuel Alvarez OFFICE SOUGHT OR HELD(INCLUDE LOCATION AND DISTRICT NUMBER IF APPLICABLE) BALLOT NO.OR LETTER JURISDICTION ❑SUPPORT Mayor,City of Oakmont ❑OPPOSE RESIDENTIAL/BUSINESS ADDRESS (NO.AND STREET) CITY STATE ZIP 4245 McDow Street Oakmont CA 95443 Identify the controlling officeholder,candidate,or state measure proponent,if any. - NAME OF OFFICEHOLDER,CANDIDATE,OR PROPONENT Related Committees Not Included in this Statement: List any committees not included in this statement that are controlled by you or are primarily formed to receive OFFICE SOUGHT OR HELD DISTRICT NO.IF ANY contributions or make expenditures on behalf of your candidacy. COMMITTEE NAME 1.0.NUMBER Friends Supporting Alvarez for Mayor 20XX 12399XX tipPrimarily Formed Candidate/Officeholder Committee List names of NAME OF TREASURER CONTROLLED COMMITTEE? oflieeho/der(s)or eandidate(s)for which this committee is primarily formed. Karen Lucci ❑ YES ® NO COMMITTEE ADDRESS STREET ADDRESS(NO P.O.BOX) NAME OF OFFICEHOLDER OR CANDIDATE OFFICE SOUGHT OR HELD ❑SUPPORT 10 Main Street ❑OPPOSE CITY STATE ZIP CODE AREA CODE/PHONE NAME OF OFFICEHOLDER OR CANDIDATE OFFICE SOUGHT OR HELD Oakmont CA 95443 707-111-2222 ❑SUPPORT ❑OPPOSE COMMITTEE NAME I.D.NUMBER - - - - - -- - -- NAME OF OFFICEHOLDER OR CANDIDATE OFFICE SOUGHT OR HELD ❑SUPPORT ❑OPPOSE NAME OF TREASURER CONTROLLED COMMITTEE? NAME OF OFFICEHOLDER OR CANDIDATE OFFICE SOUGHT OR HELD ❑ YES ❑ NO ❑SUPPORT ❑OPPOSE COMMITTEE ADDRESS STREET ADDRESS(NO P.O.BOX) CITY STATE ZIP CODE AREA CODE/PHONE Attach continuation sheets if necessary FPPC Form 460(January/o5) FPPC Toll-Free Helpline:8eeiASK-FPPC(8661275-3772) State of California © Officeholder or Candidate Controlled Committee Provide the name of the officeholder or candidate controlling the committee and indicate the office sought or held, including the location 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 If the officeholder or candidate controls any other committees (i.e., ballot measure committee, legal defense fund committee, another Fair Political Practices Commission Chapter 8.4 Campaign Manual 2 advice @fppc.ca.gov April 2016 election committee), those committees must be listed. If the candidate is aware of any primarily formed committees that exist to `"y' receive contributions or to make expenditures on behalf of his or her candidacy, those committees must also be listed. 0 Primarily Formed Ballot Measure Committee Candidate controlled committees and primarily formed candidate/ officeholder committees do not complete Part 6. iO Primarily Formed Candidate/Officeholder Committee Provide the name(s) of the officeholder(s) or candidate(s), the office(s) sought or held, and indicate whether the committee is supporting or opposing the officeholder(s) or candidate(s). Fair Political Practices Commission Chapter 8.5 Campaign Manual 2 advice @fppc.ca.gov April 2016 Campaign Disclosure Statement Type or print in ink. SUMMARY PAGE Amounts may be rounded Statement covers period CALIFORNIA /�60 Summary Page to whole dollars. �}V from 7/1/XX FORM NMI SEE INSTRUCTIONS ON REVERSE through 12/31/XX Page )0( of )0( NAME OF FILER I.D.NUMBER Manuel Alvarez for Mayor 20)0 12344XX Column A Column B Calendar Year Summary for Candidates ontributions Received TOTALTHIS PERIOD CTOTALr 50TE (FROMATTACHEO SCHEDULES) TOTALTO DATE Running in Both the State Primary and 6,773 100,000 General Elections 1. Monetary Contributions Schedule A,Line 3 $ $ through 8/30 7!1 to Date 2. Loans Received Schedule 9,Line 3 9,000 11,000 3. SUBTOTAL CASH CONTRIBUTIONS Add Lines 1+2 $ 15,773 $ 111,000 20. Contributions Received $ $ 4. Nonmonetary Contributions Schedule C,Line 3 6,500 6,500 21 Expenditures ©5. TOTAL CONTRIBUTIONS RECEIVED AddLines3+4 $ 22,273 $ 117,500 Made $ $ hxpenditures Made Expenditure Limit Summary for State 6. Payments Made Schedule E,Line 4 $ 40,950 $ 75,750 Candidates 7. Loans Made Schedule H,Line 3 1,000 1,000 41950 76,750 22.Cumulative Expenditures Made* , 8. SUBTOTAL CASH PAYMENTS Add Lines 6+7 $ $ Q1aub/ect to VOlundry Expenelluro Llmlt) 9. Accrued Expenses(Unpaid Bills) Schedule It Line 3 1,550 3,550 Date of Election Total to Date 10.Nonmonetary Adjustment Schedule C,Line 3 6,500 6,500 (mm/dd/yy) 11.TOTAL EXPENDITURES MADE Add Lines 8+9+f0 $ 50,000 $ 86,800 _______/_/ $ 0 urrent Cash Statement /_ J $ 12.Beginning Cash Balance PeviousSummaryPage,LneIS $ 39,500 To calculate Column B,add 13.Cash Receipts Column A,Line 3 above 15,773 amounts in Column A to the 3,000 corresponding amounts *Amounts in this section may be different from amounts 14.Miscellaneous Increases to Cash Schedule I,Line 4 from Column B of your last reported in Column B. Column A,Line 6 above 41,950 report. Some amounts in 15.Cash Payments Column A may be negative 16.ENDING CASH BALANCE Add Lines 12+13+14,then subtract Line 15 $ 16,323 figures that should be subtracted from previous Q 1If this is a termination statement,Line 16 must be zero period amounts. If this is the first report being filed 7.LOAN GUARANTEES RECEIVED Schedule B,Part 2 $ 10,000 for this calendar year,only carry over the amounts from Lines 2,7,and 9(if Cash Equivalents and Outstanding Debts any). 8. Cash Equivalents See instructonson averse $ 1,000 9. Outstanding Debts Add Line 2+Line 9 in Column B above $ 14,550 FPPC Form 460(January/05) FPPC Toll-Free Helpline:866/ASK-FPPC(866/275-3772) • The Summary Page provides an overview of the committee's financial activities, including all contributions received and expenditures made during the period covered by the statement. The Summary Page also includes the cumulative totals for contributions received and complete the Summary Page after expenditures made during the calendar year. Although the Summary all other schedules have Page is located at the beginning of the Form 460, it should be been completed. Totals from some of the schedules completed last. Totals from certain schedules are carried forward to are carried forward to the the Summary Page. Summary Page. Fair Political Practices Commission Chapter 8.6 Campaign Manual 2 advice @fppc.ca.gov April 2016 O Column A— Total This Period This column reflects the committee's activity through the current 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 "none" on the appropriate line in Column A. There should be no blank lines. O Column B — Total to Date This column generally reflects the cumulative totals since January 1 of the current calendar year. However, there is an exception if a committee is required to file a preelection statement in one year in 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 closing date of the semi-annual statement filed after the election. Add the totals from Column B of the committee's last campaign statement (if any) to the corresponding amounts in Column A to calculate the Column B totals for the current statement. If this is the first report being filed for a calendar year, only carry forward the amounts for loans and accrued expenses reported on Lines 2, 7, and 9 of Column B from the committee's last statement. (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 Schedules B, H, and F, respectively, of the current report.) Loans and accrued When loans (Schedules B and H) and accrued expenses (Schedule F) expenses must be reported on each campaign are paid, the figures to be carried forward from the schedules to Lines statement until the amounts 2, 7, and 9 of Column A may be negative numbers. In this case, be are paid off or forgiven. sure to show them as negative figures on the Summary Page (e.g., with a minus sign (-) or in parentheses), and subtract them when totaling Columns A and B. O Lines 1-5 (Contributions Received) Collectively, these lines represent contributions received: monetary, nonmonetary, and loans. Fair Political Practices Commission Chapter 8.7 Campaign Manual 2 advice @fppc.ca.gov April 2016 O Lines 6-11 (Expenditures Made) Collectively, these lines represent expenditures made: payments, loans made, accrued expenses (bills that are still outstanding), and nonmonetary adjustments. O Lines 12-16 (Current Cash Statement) The Current Cash Statement section should accurately reflect the committee's cash condition position at the end of the reporting period. If deposits or expenditures have been made that have not cleared the bank account, the committee's bank balance may not match the ending cash balance. Beginning and ending cash balances should include the total amount of funds in the committee's campaign checking and savings accounts, plus any investments that can be readily converted to cash, such as certificates of deposit, money market accounts, stocks and bonds, etc. Line 12 (Beginning Cash Balance) The beginning cash balance must be the same as the ending cash balance reported on Line 16 of the previously filed statement. If this is the first statement of the calendar year and no previous statement has been filed but money was raised or spent in the previous reporting period, enter the amount of cash on hand on December 31. Otherwise, enter zero. 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 to the committee's cash position 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 Commission Chapter 8.8 Campaign Manual 2 advice @fppc.ca.gov April 2016 Together, Lines 13 and 14 reflect all money that has been received 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 of all funds held in interest bearing accounts, certificates of deposit, 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. O 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. © 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 accounts, certificates of deposit, money market accounts, or any other investments that can be readily converted to cash. These amounts should be part of the ending cash figure reported on Line 16. O 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 Commission Chapter 8.9 Campaign Manual 2 advice @fppc.ca.gov April 2016 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 or the committee's bank 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 amount reflected in Column A may be a negative amount. C. What should I do if I am unable to balance my accounting records by the filing deadline? Since the Political Reform Act does not provide for filing deadline extensions, complete the form as accurately as you can and file by the deadline. You should file an amendment 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. Nitid Fair Political Practices Commission Chapter 8. 10 Campaign Manual 2 advice @fppc.ca.gov April 2016 .v r Schedule A Niaw 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. $5,000 Contributor— Major Donor Notice If contributions totaling $5,000 or more are received from a single source in a calendar year, a "major donor" notice 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 individuals' names, 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 Ex 8.1-Sarah Gomez made amount from one individual and 50 percent from the other, unless the a $500 contribution to your committee and notified document attributes specific amounts to each contributor. you that she would later be reimbursed by her Intermediary employer, Hilltop Dairy. ry Your committee will report Hilltop Dairy as the source If a contribution of$100 or more is received from a person who is of the contribution and must acting as an intermediary for the true source of the contribution, also disclose Sarah as the intermediary. 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 Political Reform Act. Contributions from Family Trusts If a contribution is received from a family trust account, it is attributed to the person who directed the contribution. Fair Political Practices Commission Chapter 8 11 Campaign Manual 2 advice @fppc.ca.gov April 2016 • * "_11,11■ Aggregating Contributions Ex 8.2-Temple Construction There are a variety of situations in which contributions from two or is a subsidiary of Temple Enterprises. Contributions more contributors must be aggregated for reporting purposes. For made by the two entities example, when an individual who is the sole proprietor of a company must be aggregated and they makes a contribution from company funds and another contribution qualify m as a major donor. p y Your committee receives a from personal funds, these contributions are added together for contribution from Temple reporting purposes. Additional information and several examples are Construction. uie req Construction is required included in Chapter 3. to notify you that its contribution is reported on If contributions that must be aggregated are received from a major a campaign d r th ame of et filed j under the name of Temple donor (i.e., an individual or business entity that makes contributions Enterprises. Your committee totaling $10,000 or more in a calendar year), the major donor must must identify both names on its report and, if you receive notify each committee to which it makes a contribution of the name contributions from both under which the major donor is filing its campaign statement (Form entities,the contributions must be aggregated for 461). When reporting the contribution received, the recipient of the purposes of reporting contribution must identify the name under which the major donor is cumulative amounts. filing its Form 461 and the name of the contributor, if it is different. 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 committee's bank account pending receipt of the information, in which case they must be reported on the next campaign statement (Form 460) filed. The campaign statement must be amended within 70 days from its closing date to disclose the missing contributor information, unless the contribution was returned to the donor. See the chart below for examples of acceptable ways to report an individual's occupation and employer. Fair Political Practices Commission Chapter 8. 12 Campaign Manual 2 advice©fppc.ca.gov April 2016 -'—'- Individual Donor Information (Contributors of$100 or more) complete Incomplete Contributions of • Retired • Manager • Consultant,A Better • Next Door $100 or more must Business Agency Neighbor be returned within • Self-Employed, No • Friend 60 days if Separate Business • ABBA(no individual's name, Name acronyms) street address, • Homemaker or Business Person occupation, and Student employer are not • Private Investor: • Entrepreneur stocks&bonds • Investor obtained. • Lawyer,Ortiz& Ex 8.3-A city calls a Smith February 4 special election to fill a vacant city council position. Candidates Calendar Year Cumulation Exception running in the February 4 election are required The cumulation period for a statement is generally January 1 through to file two preelection December 31 of the current calendar year. However, there is an wit the el in connection wth the election. The first exception if a committee is required to file a preelection statement preelection statement is in one calendar year in connection with an election held in the next due in December of the year prior to the year in which the * calendar year, such as elections held in January or early February. election will be held. In this In this case, the cumulation period begins on January 1 of the year case,the cumulation period before the election and ends on the closing date of the semi-annual year beon fore a the election 1 of the year before the election and statement filed after the election. ends on the closing date of the semi-annual statement filed after the election. 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. 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 Fair Political Practices Commission Chapter 8. 13 Campaign Manual 2 advice @fppc.ca.gov April 2016 of receipt, and within the reporting period, the return may be shown as a negative figure on Schedule A. Otherwise, the return of the contribution must be reported on Schedule E. Returned for Insufficient Funds: If the committee deposits a check and the check is returned from the bank due to insufficient funds, 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 reporting period. Otherwise, the return of the contribution must be reported on Schedule E. Transfers If campaign funds are transferred from one of a candidate's controlled 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 the form of an "enforceable promise" 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. 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 Commission Chapter 8. 14 Campaign Manual 2 advice @fppc.ca.gov April 2016 IIIIIIIIIIIIIIIIIIIIIIIIII Schedule A Type or print in ink. SCHEDULE A Monetary Contributions Received Amounts may be rounded Statement covers period ry to whole dollars. CALIFORNIA /�(�O from 7/1/XX FORM Tv SEE INSTRUCTIONS ON REVERSE Noir through 12/31/XX Page XX of XX NAME OF FILER I .NUMBER Manuel Alvarez for Mayor 20XX 12344XX O DATE GILL NAME,STREET ADDRESS AND ZIP CODE OF CONTRIBUTOONTRIBUTOR©CCAN INDIVIDUAL,ENTER ER©RECAMOU THIS0 MUENDIVE TO ED TQ PER ODATE ELECTION RECEIVED IIFCOMMITTEE,ALSO ENTER I.D.NUMBER) CODE (IF SELF-EMPLOVED,ENTER NAME PERIOD (JAN.1-DEC.31) (IF REQUIRED) OF BUSINESS) Joey's Super Market ❑IND ❑cTM 9/2/XX $5,000 $5,000 500 North Mesa Street 0oTH Oakmont,CA 95443 ❑PTY ❑SCC ❑IND 10/15/XX Martin Developers ❑COM $198 $198 1650 Wingfield Road 00TH Oakmont,CA 95443 ❑PTY ❑SCC WIND Intermediaries: ❑coM Bookkeeper, Marcus Brown $99 0 0TH Martin Developers 325 Richmond Road,Oakmont,CA 95443 ❑PTY ❑Scc O IND Ashley Green $99 ❑COM Sales Representative, 448 Harbor Drive ❑0TH Martin Developers Oakmont,CA 95443 ❑PTY ❑SCc Angel Trujillo O IND 12/15/XX 6688 Fourth Avenue ❑ TM Requested O ❑ TH $75 $300 Oakmont,CA 95443 ❑PTY ❑Scc SUBTOTALS 5,273 edule A Summary *Contributor Codes ll�i mount received this period-itemized monetary contributions. ND-Individual clude all ScheduleAsubtotals.) $ 5,273 COM-Recipient Committee (other than PTY or SCC) mount received this period—unitemized monetary contributions of less than$100 $ 1,500 0TH-Other(e.g.,business entity) PTY-Political Party tal monetary contributions received this period. scc-small coot butor committee dd Lines 1 and 2.Enter here and on the Summary Page,Column A,Line 1.) TOTAL $ 6,773 FPPC Form 460(January/05) FPPC Toll-Free Helpline:866/ASK-FPPC(866/275-3772) 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 Commission Chapter 8. 15 Campaign Manual 2 advice @fppc.ca.gov April 2016 _,.,- O 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 are deemed "received." co -Wade Murphy contributed your $25 to your committee during the O Contributor Information first reporting period of the calendar year. On Itemize persons that have contributed to the committee a cumulative your committee's first p campaign statement, amount of$100 or more during the calendar year. Provide each Wade's contribution contributor's full name, street address, city, state, and zip code. Note: was not reDuirng to be itemized. During the Many local agencies require itemization at a lower threshold so check second reporting period, with your elections office. Wade contributed $99 to your committee. Since his cumulative contributions If the contributor is a recipient committee, report that committee's for the calendar year are identification number. If an identification number has not yet been now$100 or more,Wade must be e it temized on the assigned or is unknown, report the full name, street address, city, next campaign statement. state, and zip code of that committee's treasurer. The$99 contribution will be reported under"amount received this period"and If a contribution is received through an intermediary, provide the name, $124 will be reported as street address, city, state, zip code, and, if applicable, occupation the "cumulative to date" total. His name, address, and employer, of both the intermediary and the true source of the occupation, and employer contribution. (See Chapter 3.) I must also be disclosed. O Contributor Code For each itemized contributor, check the appropriate box to indicate whether the contributor is an individual, a committee, "other" (such as a business entity), or a political party. (The code "SCC" is for small contributor committees and is applicable only to state candidates and committees.) void Fair Political Practices Commission Chapter 8. 16 Campaign Manual 2 advice @fppc.ca.gov April 2016 O Occupation and Employer Information If the contributor is an individual, provide the individual's occupation slow 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, enter "requested" 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 returned if the contributor's name, street address, and if the contributor is an individual, his or her occupation and employer are not in the committee's records within 60 days of receipt of the contribution. © Amount Received This Period Report the amount of the contribution. O 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 year cumulation if the committee is required to file a preelection statement in one calendar year in connection with an election held in the next calendar year. See "Calendar Year Cumulation Exception" under Section D., General Rules for Reporting Contributions Received on Schedule A. The amount listed in the "Cumulative to Date Calendar Year" column Once a committee will differ from the "Amount Received This Period" column if the has ea or more a fro a cont in committee has received other contributions, including nonmonetary a calendar year, all future contributions, loans, or loan guarantees from the same source during contributions received from that contributor in that the calendar year. Once a committee has received $100 or more from calendar year, regardless a contributor in a calendar year, all future contributions received from of the amount, must be itemized. that contributor in that calendar year, regardless of the amount, must be itemized. Fair Political Practices Commission Chapter 8 17 Campaign Manual 2 advice©fppc.ca.gov April 2016 0 Per Election to Date The "Per Election to Date" column is generally for state candidates N and committees that are subject to contribution limits. The Political Reform Act does not contain contribution limits for local candidates and committees; however, local ordinances may include limits and other restrictions and reporting requirements. Local candidates and committees should check with the local elections office about reporting obligations under local laws. 0 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 Commission Chapter 8. 18 Campaign Manual 2 advice @fppc.ca.gov April 2016 Schedule B—Part 1 Type or print in ink. SCHEDULER-PART1 Amounts may be rounded Statement covers period CALIFORNIA /�(�O Loans Received to whole dollars. from 7/1/XX FORM 'T V %%r' 12/31/XX XX SEE INSTRUCTIONS ON REVERSE through Page of NAME OF FILER I.D.NUMBER Manuel Alvarez for Mayor 20XX 12344XX IF AN INDIVIDUAL,ENTER O FULL NAME,S T R E E T ENDER ADDRESS AND ZIP CODE©OCCU OCCUPATION AND MPLO ER BALANCE RECEIVED THIS t�l UL OOUNTPAIDOSTDINONTEREST ORIGINAL MULATIVE (IF SELF-EMPLOYED,ENTER BEGINNING THI OR FORGIVEN CLOSE OF THIS PAID THIS AMOUNT OF ONTRIBUTION' (IF COMMITTEE.ALSO ENTER I.D.NUMBER) NAME OF BUSINESS) PERIOD PERIOD THIS PERIOD* PERIOD PERIOD LOAN TO DATE American Credit Union ❑PAD CALENDAR YEAR 350 South Park Street $ -0- $ 10,000 5 % $ 10,000 $ N/A Oakmont,CA 95443 ❑FORGIVEN RATE PER ELECTION* $ -0- $ 10,000 $ -0- 7/1/XX $ 250 7/1/XX $ N/A to IND ❑COM ❑OTH ❑PTY ❑SCC DATE DUE DATE INCURRED la PAID CALENDAR YEAR Manuel Alvarez Editor,Oakmont Weekly 1,000 1,000 0- 2,000 2,000 4245 McDow Street s $ x $ $ Oakmont,CA 95443 E FORGIVEN RATE PER ELECTION• $ 2,000 $ -0- $ -0- N/A $ -0- 1/15/XX $ N/A t® IND ❑COM ❑OTH ❑PTV ❑SCC DATE DUE DATE INCURRED O SUBTOTALS $ 10000$ 1000 $ 11000 $ 250 chedule B Summary Schedule E.Line 3) 1. Loans received this period $ 10,000 (Total Column(b)plus unitemized loans of less than$100.) 'tcontnbutor Codes 1,000 IND—Individual 2. Loans paid or forgiven this period $ COM-RecipientCommittee (Total Column(c)plus loans under$100 paid or forgiven.) (other than PTY or SCC) (Include loans paid by a third party that are also itemized on Schedule A.) OTH—Other(e.g.,business entity) PTV—Political Party 3. Net change this period. (Subtract Line 2 from Line 1.) NET $ 9,000 SCC-Small Contributor Committee Enter the net here and on the Summary Page,Column A,Line 2. MaybGB�aeh aoombe' *Amounts forgiven or paid by another party also must be reported on Schedule A. 41imp,,, ••If required. FPPC Form 480(January/0 PVC el'--"-'/"--.°Gr'°C%f"PC we WS 777 V Received) Schedule B is used to report activity on loans received by the committee. Outstanding loans are reported on each campaign statement until they are paid off or forgiven. Schedule B has two parts: • Part 1 lists loans received or outstanding, and the repayment, If the committee has forgiveness, or payment by a third party of a loan previously drawn on a line of credit, it is reported as a received. loan. • Part 2 lists information about loan guarantors, if any. Fair Political Practices Commission Chapter 8. 19 Campaign Manual 2 advice @fppc.ca.gov April 2016 4 Lender Information and Contributor Code Provide the full name, street address, city, state, and zip code, of *,r% each lender of$100 or more. For each itemized lender, check the appropriate box to indicate whether the lender is an individual, a committee, "other" (such as a business entity), or a political party. (The code "SCC" is for small contributor committees and is applicable A loan received � ,y only to state candidates and committees.) from a commercial lending institution in the normal course of business Financial Institution is reportable on Schedule B but is not considered a If a financial institution (i.e., bank or credit union) has made a loan to contribution. Contributor the committee, or the committee has drawn on a line of credit from codes and cumulative amounts are only a financial institution, report the institution as the lender, even if the required for loans that are candidate has established the line of credit. contributions. 0 Individual Lender • If the lender is an individual (including a candidate or officeholder A candidate or using personal funds to make a loan to his or her committee), provide officeholder who deposits personal funds into the individual's occupation and the name of his or her employer. If the his or her own campaign individual is self-employed, provide the name of his or her business. bank account may report the r funds as a loan on Schedule Do not leave this column blank. If this information has not yet been B or as a contribution on obtained, enter"requested" or similar language and amend Schedule Schedule A. B, Part 1, when the information is received. (See Chapter 2 for information about the requirement to return contributions/loans if the name, address, occupation, or employer information is not received.) Report each loan separately, even if Loan Amounts the committee has received more than one loan from a 0 Outstanding Balance Beginning This Period single source. Enter the outstanding loan balance at the beginning of this reporting period (Column (d) of the last report filed). If the loan was received this period, enter zero. 0 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. Ned Fair Political Practices Commission Chapter 8.20 Campaign Manual 2 advice @fppc.ca.gov April 2016 O 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. O 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. O 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, indicate "none" on the "interest rate" line. Interest paid is reported separately from payments made on the loan principal. Interest payments are also transferred to the Schedule E Summary. OOriginal Amount of Loan Enter the original amount of the loan and the date it was received. If this is the first time the loan is being reported, this is the same amount as reported in Column (b). O 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 committee is required to file a preelection statement in one calendar year in connection with an election held in the next calendar year. See "Calendar Year Cumulation Exception" under Section D., General Rules for Reporting Contributions Received on Schedule A. Fair Political Practices Commission Chapter 8.21 Campaign Manual 2 advice @fppc.ca.gov April 2016 The "Per Election to Date" column is generally for state candidates and committees that are subject to contribution limits. The Political Reform Act does not contain contribution limits for local candidates *ad and committees; however, local ordinances may include limits and other restrictions and reporting requirements. Local candidates and committees should check with the local elections office about reporting obligations under local laws. 0 Schedule B Summary Complete the Schedule B Summary by entering the total amount of loans received 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 Page — Column B, Line 2) 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 Commission Chapter 8.22 Campaign Manual 2 advice @fppc.ca.gov April 2016 Schedule B—Part 2 Type or print in ink. SCHEDULE R-PART 2 Amounts may be rounded Statement covers period CALIFORNIA A 60 Loan Guarantors to whole dollars. 7/1/XX FORM —r from 12/31/XX SEE INSTRUCTIONS ON REVERSE through Page of NAME OF FILER I .NUMBER Manuel Alvarez for Mayor 20XX 12344 IF AN INDIVIDUAL,ENTER FULL NAME,STREET ADDRESS AND AMOUNT BALANCE 2 ZIP CODE OF GUARANTOR •NTRIBUTO OCCUPATION AND EMPLOYER LOAN GUARANTEED UMULATIVE OUTSTANDING (IFCOMMITTEE.ALSOENTERT.D.NUMBER) CODE (IF SELF-EMPLOYED ENTER THIS PERIOD TODATE TODATE NAME OF BUSINESS) LENDER CALENDAR YEAR Joseph Alvarez ®IND Realtor,Alvarez and 10,000 445 C Street ❑COM Mitchell Realty American Credit Union $10,000 s $10,000 Oakmont,CA 95443 ❑DTH DATE PER ELECTION ❑PTY 7/1/XX F REQUIRED) ❑scc $ N/A Enteran SUBTOTAL $ 10,000 Summary Page, ur»nonry. Guarantors 0 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. Nome Lines of Credit If a third party establishes a line of credit of$100 or more for the committee, enter the third party's full name, street address, city, state, and zip code, as the guarantor. 0 Contributor Code For each itemized guarantor, check the appropriate box to indicate whether the guarantor is an individual, committee, "other" (i.e., business entity), or a political party. (The code "SCC" is for small contributor committees and is applicable only to state candidates and committees.) © Individual Loan Guarantor If the guarantor is an individual, provide the 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. Do not leave this column Fair Political Practices Commission Chapter 8.23 Campaign Manual 2 advice @fppc.ca.gov April 2016 blank. If this information has not yet been obtained, enter "requested" or similar language and amend Schedule B, Part 2, when the information is received. O 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. © 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 during the period. (Report amounts drawn on a line of credit on Schedule B — Part 1.) O Cumulative to Date Enter the cumulative amount of contributions (including loans, loan guarantees, monetary and nonmonetary contributions) received from the guarantor. Contributions from a single source are generally Loan guarantees are cumulated from January 1 through December 31 of the current not included in the calendar year. However, there is an exception to calendar year Schedule B Summary but are carried forward , in a lump cumulation if the committee is required to file a preelection statement sum to Line 17 of the overall in one calendar year in connection with an election held in the next Summary Page. calendar year. See "Calendar Year Cumulation Exception" under Section D., General Rules for Reporting Contributions Received on Schedule A. The "per election" information is generally only required for state candidates and committees that are subject to contribution limits. The Political Reform Act does not contain contribution limits for local candidates and committees; however, local ordinances may include limits and other restrictions and reporting requirements. Local candidates and committees should check with the local elections office about reporting obligations under local laws. O Balance Outstanding to Date Report the outstanding balance for which the guarantor is liable at the close of the reporting period. Fair Political Practices Commission Chapter 8.24 Campaign Manual 2 advice @fppc.ca.gov April 2016 Received on Schedule C Schedule C is used to report nonmonetary contributions received by the committee. Nonmonetary contributions are goods or services Ex 8.5-A restaurant donates provided to the committee for which it does not pay the fair market food for a committee fundraiser. The cost of the value. food if purchased by the committee would be$1,000. The fair market value is the amount the committee would pay for the The$1,000 as th of must areport $1,000 as the fair market goods or services on the open market—whatever it would cost any value of the contribution member of the general public to obtain the same goods or services. even though the cost to the restaurant was less than the (See Chapter 3 for assistance in determining the fair market value of a (.fair market value. nonmonetary contribution.) Examples of Nonmonetary Contributions • Items donated for a garage sale, raffle, or auction. • Poll results. • Signs, postage, and printing. sow- • 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. • Use of an office, automobile, or airplane. • Mail production, postage, printing, shipping, data and graphics. • Phone banking and public communications. • Media consulting services. • Video services. • Staff time and expenses. • Banner ads. Fair Political Practices Commission Chapter 8.25 Campaign Manual 2 advice @fppc.ca.gov April 2016 • Precinct walking and door hangers. • Food for volunteers. iii' • Slate mailer/slate cards. • Campaign materials, flyers for rally, buttons, t-shirts. • • Corporate stock. If corporate stock is received as a contribution,the amount • Compensation paid by an employer to an employee who spends reported on Schedule C is more than 10 percent of his or her compensated time in a the value listed on the stock of calendar month working on campaign activities for one or more receipt. When the the se ck g receipt. When the stock campaigns. Compensation includes gross wages paid and any is sold,the proceeds are benefits in lieu of wages, such as stock options or an annuity reported on Schedule I as a miscellaneous increase purchase. Compensation does not include standard benefits, to cash. See Chapter 3 for such as the employer's payments to a retirement or health plan. additional information. (See Chapter 3 for exceptions, such as volunteer personal services, home/office fundraisers, and member communications.) Fair Political Practices Commission Chapter 8.26 Campaign Manual 2 advice@fppc.ca.gov April 2016 A--1-. Schedule C Type or print in ink. SCHEDULE C Amounts may be rounded Nonmonetary Contributions Received to whole dollars. Statement covers period CALIFORNIA ACO from 7/1/XX FORM -FV 12/3V XX SEE INSTRUCTIONS ON REVERSE through pays XX of XX NAME OF FILER I.D.NUMBER O Manuel rez for Mayor 20XX 123446 FULL NAME,STREET ADDRESS AND NTRIBUT / IF AN INDIVIDUAL,ENTER©DESCRIPTION OF O AMOUNT/ �UMU ATEVE TO ER ELECTION DATE OCCUPATION AND EMPLOYER FAIR MARKET TO DATE RECEIVED ZIP CODE OF CONTRIBUTOR CODE x (IF SELF-EMPLOYED ENTER GOODS OR SERVICES VALUE CALENDAR YEAR (IF REQUIRED) (IF COMMITTEE,ALSO ENTER I.D.NUMBER) NAME OF BUSINESS) (JAN 1-DEC 31) Genesis Insurance Company OIND Fundraising 9/25/XX 850 F Street WIDTH Expenses $1,500 $1,500 N/A Oakmont,CA 95443 ❑pT. ❑SCC 10/1/XX Citizens for Improving Oakmont ®COM Employee (ID 11678XX) ❑OTH Compensation $5,000 $5,000 N/A 1275 Main Street,Oakmont,CA 95443 ❑p-- for Campaign ❑SCC Activities , Attach additional information on appropriately labeled continuation sheets. SUBTOTALS 6,500 Schedule C Summary Contributor Codes 1.Amount received this period-itemized nonmonetary contributions. ND-Individual (Include all Schedule C subtotals.) $ 6,500 COM-Recipient Committee (other than PTY or SCC) 2.Amount received this period-unitemized nonmonetary contributions of less than$100 $ O_ OTH—Other)e.g.,business entity) PTY—Political Party 3.Total nonmonetary contributions received this period. scc—small Contributor committee (Add Lines 1 and 2.Enter here and on the Summary Page,Column A,Lines 4 and 10.) TOTAL $ 6,500 %o ,. Contributions Received) O Date Received Ex 8.6-A general purpose A nonmonetary contribution is received on the earlier of the following: committee, in coordination with your committee, printed a brochure • The date that funds are expended by the contributor for the advocating your election goods or services; to the school board. The committee delivered the brochures to your committee • The date that the candidate or committee obtains possession or headquarters on February 22 control of the goods or services; or and paid the printing bill on March 15. Your committee received the nonmonetary • The date the committee receives the benefit of the expenditure. contribution on February 22. O Contributor Information Itemize persons who have contributed to the committee a cumulative amount of$100 or more during the calendar year. Provide each contributor's name, street 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.) t i Fair Political Practices Commission Chapter 8.27 Campaign Manual 2 advice @fppc.ca.gov April 2016 ro O Contributor Code For each itemized guarantor, check the appropriate box to indicate w1' whether the guarantor is an individual, committee, "other" (i.e., business entity), or a political party. (The code "SCC" is for small contributor committees and is applicable only to state candidates and committees.) O Occupation and Employer If the contributor is an individual, provide the 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. Do not leave this column blank. If this information has not yet been obtained, enter "requested" or similar language and amend Schedule C when the information has been received. © Description of Goods or Services If an individual donates his or her personal Provide a brief description of the goods or services received. or professional services to a campaign (including his or her travel expenses), `" 0 Amount/Fair Market Value no contribution has been made or received as long as Report the value of the nonmonetary contribution received. the individual is not paid or reimbursed. 0 Cumulative to Date arias n . 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 cumulation if the committee is required to file a preelection statement in one calendar year in connection with an election held in the next calendar year. See "Calendar Year Cumulation Exception" under Section D., General Rules for Reporting Contributions Received on Schedule A. Fair Political Practices Commission Chapter 8.28 Campaign Manual 2 advice @fppc.ca.gov April 2016 0 Per Election to Date ,,,The "Per Election to Date" column is generally for state candidates and committees that are subject to contribution limits. The Political Reform Act does not contain contribution limits for local candidates and committees; however, local ordinances may include limits and other restrictions and reporting requirements. Local candidates and committees should check with the local elections office about reporting obligations under local laws. 0 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, Lines 4 and 10. Reminder: Once a contributor has contributed $100 or more in a calendar year, all future contributions received from that person, regardless of the amount, must be itemized. r.. 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? The artist's time is 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 from the artist's employer. 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 Commission Chapter 8.29 Campaign Manual 2 advice @fppc.ca.gov April 2016 C. Before I was aware that I must deposit personal funds used for campaign purposes into my campaign bank account, I made some purchases for letterhead, signs and mailing lists from my personal funds. I do not plan to be reimbursed for the purchases. Must I report a nonmonetary contribution? Yes. The Act requires a candidate to deposit personal funds into the campaign bank account prior to using the funds for campaign expenditures. This provides a clear audit trail of campaign expenditures. However, when campaign expenditures are made with personal funds, the payments must still be reported. Since you will not be reimbursed, the amount of personal funds used should be reported on Schedule C as nonmonetary contributions. Purchases of$100 or more must be itemized. `��' •ter , � . r, �' � , • o s t , oa 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). Fair Political Practices Commission Chapter 8. 30 Campaign Manual 2 advice©fppc.ca.gov April 2016 • Payments for communications (e.g., mailings, billboards, radio ads) that expressly advocates support of or opposition to a °rw clearly identified candidate or ballot measure, but the payments 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 candidate's own candidacy, or to oppose the candidate's opponent(s), are not reported on Schedule D. These payments are direct campaign expenditures and are reported only on Schedule E. If, during a calendar year, an officeholder or candidate uses personal funds to make contributions of$10,000 or more, or independent expenditures of$1,000 or more, to support or oppose other officeholders, candidates, committees, or ballot measures (including a controlled ballot measure committee), the candidate must file a Major Donor and Independent Expenditure Committee Campaign Statement (Form 461). These payments are not reported on Schedule D. *r""' 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. Nouiri Fair Political Practices Commission Chapter 8.31 Campaign Manual 2 advice @fppc.ca.gov April 2016 Schedule D Summa of Expenditures Type or print in ink. SCHEDULED Summary p Statement covers period Amounts may rounded CALIFORNIA 46A Supporting/Opposing Other to whole dollars. 7/1/XX FORM Candidates,Measures and Committees from SUCN through 12/31/XX Page XX of SEE XX NAME IN OF TR FILETIONS R ON REVERSE I.D.NUMBER Manuel Al arez for Mayor 20XX © 12344XX 0 DATE NAME OF CANDIDATE,OFFICE,AND DISTRICT,OR OPE OF PAYMENT'S DESCRIPTION ©AMOUNTTHIS QMUENDARTO DDAOPERE ELECTION MEASURE NUMBER OR LETTER AND JURISDICTION, (IF REQUIRED) PERIOD (JAN.1-DEC 311 IF REQUIRED) OR COMMITTEE Committee for Bike Lanes in Oakmont ® Monetary Loan 10/1/XX Yes on Measure E(ID 12456XX) Contnbution $1,000 $1,000 N/A City of Oakmont ❑ Nonmonetary Contribution ❑ Independent ® Support ❑ Oppose Expenditure Del Norte County Independent Central • Monetary 10/12/XX Committee(ID 11852XX) contribution $500 $500 N/A ❑ Nonmonetary Contnbution ❑ Independent ® Support ❑ Oppose Expenditure ❑ Monetary Contribution ❑ Nonmonetary Contnbution __.._.. ❑ Independent ❑ Support ❑ Oppose Expenditure 0:7,,,,'-2774,;77,7"; ' SUBTOTAL $ 1,500 %, Schedule D Summary 1 Itemized contributions and independent expenditures made this period.(Include all Schedule D subtotals.) $ 1,500 2 Unitemized contributions and independent expenditures made this period of under$100 $ 0 3 Total contributions and independent expenditures made this period.(Add Lines 1 and 2. Do not enter on the Summary Page.) TOTAL$ 1,500 FPPC Form 460(January/05) FPPC Toll-Free Helpline:866/ASK-FPPC(866/275-3772) r Measures and Committees) 0 Date Report the date the contribution or independent expenditure was made. A monetary contribution is made on the date it is mailed, delivered, or otherwise transmitted to the officeholder, candidate, or committee. l Fair Political Practices Commission Chapter 8.32 Campaign Manual 2 advice @fppc.ca.gov April 2016 A nonmonetary contribution is made on the earlier of the following: Ex 8.7-Your committee, working on behalf of • The date an expenditure is made for the goods or services; the Friends of the Forest committee, arranged for • The date the committee or an agent of the committee obtained the mailing of a campaign possession or control of the goods or services; or piece supporting their issue. The mailer is sent to voters directly from the • The date the committee otherwise received the benefit of the mail house on September expenditure. 4. On September 6,the mail house submits an invoice for payment to your committee. A payment made in connection with the development, production, Your committee made a or dissemination of a communication that is an independent nonmonetary contribution to the Friends of the Forest expenditure must be reported no later than the date the committee on September 4 communication is mailed, broadcast, or otherwise disseminated to the (the date they received the public. I benefit of the expenditure). A payment for a communication that is never disseminated to the • public is not considered an independent expenditure and need not be reported on Schedule D. The payment must be reported on Schedule schedule D is a p p y p summary of payments E as an expenditure. made by the committee that were contributions to other candidates and 0 Candidate and Office, Measure and Jurisdiction, or committees or independent Committee expenditures to support or oppose other candidates If a total of$100 or more is contributed or expended during a calendar payments bents are also The payments are also reported year to support or oppose a single candidate, ballot measure, or a on Schedule E, F, or H. general purpose committee (e.g., a political party), disclose the name of the candidate and the office sought or held, the number or letter and jurisdiction of the ballot measure, or the name of the general Ex 8.8-The Committee to purpose committee. For each candidate or measure listed, indicate Elect Waters for Seaside whether the payment was made to support or oppose the candidate or Mayor 20XX made a contribution of$100 to measure. the Committee to Support Growth in Seaside,Yes on © Type of Payment Measure C. In addition to reporting the contribution on Schedule D,the Check the appropriate box to indicate whether the payment was a expenditure must also be monetary contribution, nonmonetary contribution, or independent reported on Schedule E. expenditure. Fair Political Practices Commission Chapter 8.33 Campaign Manual 2 advice @fppc.ca.gov April 2016 O 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 on hand (i.e., office supplies) are contributed to another candidate or committee, a description must be included. © Amount This Period Provide the amount(s) of contributions or independent expenditures made this period relative to each candidate, measure, or committee. O 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 a candidate's election committee with 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. O 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 candidate during a specified period. Check with the local elections office. Fair Political Practices Commission Chapter 8. 34 Campaign Manual 2 advice @fppc.ca.gov April 2016 0 Schedule D Summary 4 ..„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 (Line 3). Totals from the Schedule D Summary are not carried forward to the overall Summary Page. Answering Your Major Donor Questions A. Must a candidate file the Form 461 (Major Donor and 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? No. A candidate's contributions to his or her own election committee do not trigger the requirement to file the Form 461. But, if a candidate otherwise qualifies as a major donor 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. Must the spouse of a candidate file the Form 461 if he or she makes personal contributions to his or her spouse's 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. But, if the candidate's spouse makes contributions from legally separate funds, the spouse will become a major donor and must file the Form 461. C. Must a candidate file the Form 461 if he or she makes personal contributions to his or her controlled ballot measure committee of$10,000 or more? Yes. Fair Political Practices Commission Chapter 8.35 Campaign Manual 2 advice @fppc.ca.gov April 2016 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, must the candidate file the Form 461 as a major donor? No. Contributions to a candidate's own election committee are not counted toward the $10,000 major donor threshold. E and Accrued Expenses (Unpaid Bills) 1,137:4 n Scle+ ule 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 to make loans to other candidates or committees. Use Schedule B (Part 1) to report repayments on loans received by the committee. Use Schedule H to report loans made to • other candidates and committees. Expenditures of campaign funds must An expenditure is "made" on the date the payment is made or the date have a litical, legislative, or governmental po purpose. the committee receives the goods or services, whichever is earlier. (See Chapter 5.) 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- During October and November,you: (a) Paid a deposit on a room for a fundraiser to be held January 10; (b) Ordered and received the fundraiser invitations for which you were billed but had not made a payment by December 31; and (c) Ordered, but did not receive,flowers for the fundraiser for which you will be billed at the end of January. On your semi-annual statement covering the period ending December 31, report the payment for the room deposit on Schedule E. Because you received the invitations but had not paid for them by December 31, report the outstanding amount on Schedule F. The cost of the flowers will not be reported until the next reporting period because you did not pay for nor Lreceive the flowers during the period covered by the statement. Fair Political Practices Commission Chapter 8.36 Campaign Manual 2 advice©fppc.ca.gov April 2016 The committee's unpaid administrative overhead expenses, such as rent, utilities, phones, or employee salaries, need not be reported Ex 8.10-On June 15,your 'on Schedule F if the committee has not received a bill in the normal committee received two bills for June services. One course of business or if the due date for the payment is after the bill was from the restaurant closing date of the statement. Regular administrative overhead does where your committee held a fundraiser and the other not include contracts for services such as accounting, legal services, was for office rent. The due campaign consulting, and public relations. date for both invoices is July 15. If, on June 30,the committee has not paid the Information Required two bills,the bill from the restaurant is reported on Itemize each payment or accrued expense of$100 or more to a single Schedule F as an accrued payee, and any payments totaling $100 or more for a single product or expense on annual statement.your Sinsemi- ce service made during the period. the rent bill is a regular administrative overhead expense, it does not need to If the committee has entered into an agreement to make payments be reported as an accrued over time for a product or service, other than general administrative expense. 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's own website. The committee must specifically describe amounts 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, whether one's own or another's. • 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 Commission Chapter 8. 37 Campaign Manual 2 advice @fppc.ca.gov April 2016 Payments made to an individual, either directly or through a third party, must be reported on Schedule E or F using the code "WEB." In 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 published in the first instance. The committee is not required to know 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.) Savings Accounts/Certificates of Deposit/Money Market Accounts Do not report on Schedule E the transfer of campaign funds into a savings account, certificate of deposit, money market account, or the 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 to run for state office. (See Campaign Disclosure Manual 1 for State Candidates.) Contributions and Independent Expenditures If the committee makes contributions and/or independent expenditures to support or oppose other candidates, officeholders, or committees, in 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 "Description of Payment" column on Schedule E or F. Fair Political Practices Commission Chapter 8 38 Campaign Manual 2 advice @fppc.ca.gov April 2016 When a primarily formed committee makes a payment for a communication that expressly advocates support for or opposition `low 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 expenditure, additional forms, such as the Verification of 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 independent expenditures to support or oppose other candidates, officeholders, committees, or ballot measures, it may qualify as a 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 worker, consulting firm, or advertising agency) makes an expenditure, 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 known as "subvendor payments." The committee must also obtain and keep receipts, invoices, and other documentation for subvendor payments. (See Chapter 2.) Examples of subvendor payments that must be itemized include: • Development of campaign strategy; • Media placements —television, radio, cable, digital (specifically listing the TV or radio stations); • Commissions paid to media firms for media placements; • Travel expenses, such as a commercial airline or hotel paid $500 or more; Fair Political Practices Commission Chapter 8.39 Campaign Manual 2 advice @fppc.ca.gov April 2016 • Print or online advertisements; • Polling and survey research; Nod • Talent and media services, production costs; Payments made to • Voter canvas program, including individuals paid $500 or more; subvendors may be itemized on Schedule E or Schedule G. Accrued • Robocalls; expenses owed to a subvendor are reported on • Printing and literature; and Schedule F. • Design or management of campaign literature or advertising. Generally, agents and independent contractors must provide the Ex 8.11-An agent purchased committee with the required payment information no later than three $535 worth of flowers, working days prior to the deadline for filing the campaign statement; $250 worth of postage, however, an expenditure of$1,000 or more made for a contribution or and $100 worth of balloons p for a fundraiser. Itemize independent expenditure in the 90 days before an election, including the agent on Schedule the date of the election, must be reported to the committee within 24 E Schedule F ibe agent was not reimbursed hours. Expenditures made by the agent or independent contractor for during the reporting its own overhead and operating expenses need not be itemized. period). Provide the agent's name and address, a code or a description of In many cases, funds paid to an agent or independent contractor in the expenditures, and the one reporting period will not be used by the agent or contractor until amount being reimbursed ($885). In addition, a subsequent reporting period. Payments to an agent or contractor since the payment to the are reported on Schedule E of the campaign statement covering the florist was$500 or more, the florist must also be period in which the payments are made. When the agent or contractor itemized. Provide the name spends the money, subvendor payments are reported on the campaign and address of the florist, statement covering the period in which the expenditures are made. a the expenditure,a description iu and h the expenditure, and the Payments of$500 or more must be itemized. amount paid to the florist Subvendor payments are most commonly reported on Schedule G, but I($535). 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 in the "Amount Paid" column, as this will inflate expenditure totals. void Fair Political Practices Commission Chapter 8.40 Campaign Manual 2 advice @fppc.ca.gov April 2016 Credit Card Payments Ex 8.12-Sandra's When reporting payments to a credit card company, provide the name, committee for city council used the campaign credit street address, city, state, zip code, and the amount of payment. In card on December 28 at addition, provide the name, street address, city, state, and zip code two different vendors to of any vendor that received $100 or more, the amount paid to each and to have a invitations supplies bons t and to have invitations to itemized vendor, and a code or description of the payment. a fundraiser printed. The printing job cost$560, while the office supplies If a payment has not been made on the credit card by the end of were under$100. Since the the reporting period, or only partial payment has been made, report committee did not make a the amount outstanding to the credit card company on Schedule F. b by y December et er 31,credit r theft n the endrd ec 3d Payments to the credit card company should be reflected on Schedule of the reporting period,the E when payments are made and Schedule F when there is a balance amount owed is reported on Schedule F. In addition still owing at the end of the reporting period. Vendors are not required to the total amount owed to to be listed more than one time, on either Schedule E or Schedule F. the financial institution that issued the credit card,the Schedule G may also be used to disclose vendors. committee also itemizes the printer, since the amount Contingency Payments owed is$100 or more. The committee will report payments it makes to the If the committee has entered into an agreement to pay a contingency financial institution, but does fee, such as a bonus to a consultant if the campaign is successful, not reitemize any vendors. Now,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. Reimbursements — Candidates Candidates may not use their personal funds for campaign expenses (except for filing and ballot statement fees) without first depositing them into the campaign bank account. Reimbursements —Volunteers, Employees, Agents and Contractors Volunteers (including a candidate's spouse), employees, and agents 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 description of each expenditure prior to reimbursement; Fair Political Practices Commission Chapter 8.41 Campaign Manual 2 advice @fppc.ca.gov April 2016 • The reimbursement is paid within 45 calendar days after the expenditure is made; and • There is a written contract between the committee and the agent or independent contractor providing for the reimbursement of expenditures. (Volunteers and employees do not need a written 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. Reimbursements — Officeholders Officeholders may be reimbursed for expenses related to holding office paid for from personal funds when the following criteria are met. • The expenditures are not campaign expenditures; • The committee's treasurer is provided with a dated receipt and a written description of the expenditure; and • Reimbursement occurs: a For a monetary expenditure: Within 90 calendar days after the officeholder incurs the expense. 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 officeholder to the committee and no reimbursement may occur. An officeholder may be reimbursed from either the controlled committee campaign bank account established for election to the incumbent term of office, or from a controlled committee bank account established for a different election to the same office, if all of the conditions above are met. When reporting reimbursements to the officeholder, subvendor payments of$100 or more must be itemized. Fair Political Practices Commission Chapter 8.42 Campaign Manual 2 advice @fppc.ca.gov April 2016 ., ..-- 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 in the "Description of Payment" column as described below. The explanation must be provided even if an expenditure code is used. Ex 8.13-The mayor's 1 Gifts: When reporting an itemized expenditure for a gift, the election committee committee must briefly describe the political, legislative, or purchased $50 restaurant governmental purpose of the expenditure. In addition, the committee gift certificates for nwo volunteer campaign workers. must provide the date of the gift and a description of the gift. If the gift On Schedule E,the payment was made to an individual recipient, the name of the recipient must be must be itemized. In the "Description of Payment" included. If a gift was made to a group of recipients, the name of each column,the following would recipient who received a benefit of$50 or more is required. When the adequately describe the recipient of a gift with a value of$50 or more is not known at the time certificates sfor campaign certificates for campaign the payment is required to be reported, the committee must report workers, Linda Davis($50), that the gift was for an "undetermined recipient." Once the gift has and Richard Bailey($50)." 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-The committee's a meal reported as an itemized expenditure for travel, as discussed controlling candidate and below), the committee must briefly describe the political, legislative, or campaign manager discuss the election campaign governmental purpose of the expenditure. In addition, the committee during a lunch meeting at a must provide the date of the meal, the number of individuals who were restaurant. The meal was present at the meal, and whether the candidate, a member of his or charged to the campaign credit card. On Schedule her household, or an individual with authority to approve expenditures E,the payment to the of campaign funds was present at the meal. It is not necessary to credit card company and the restaurant must be include the names of individual attendees on the report. However, itemized. In the "Description the names of the attendees must be maintained in the committee's of Payment"column,the following would adequately records. (See Chapter 2.) describe the payment: "9/1/XX—Lunch meeting regarding campaign attended by campaign manager and candidate. Fair Political Practices Commission Chapter 8.43 Campaign Manual 2 advice @fppc.ca.gov April 2016 Travel Payments: When reporting an itemized expenditure for travel, including lodging and meals, the committee must briefly describe the Ex 8.15-A San Diego elected officeholder political, legislative, or governmental purpose of the expenditure. In attended a fundraiser in addition, the committee must also provide the date or dates of the Sacramento for a state ballot travel, the destination, and the goods or services purchased. The measure committee. The g p officeholder s committee description must also include the number of individuals for whom the paid for the travel expenses. payment was made and whether the trip included the candidate, a On Schedule E,the payment to the airline must be member of his or her household, or an individual with the authority to itemized. In the"Description approve expenditures of campaign funds. The names of individuals of Payment"column,the following would adequately who traveled are not required to be disclosed on the report. However, describe the payment: the names of the travelers must be maintained in the committee's "8/1/XX and 8/3/XX—Round records. trip airfare to Sacramento ecords. (See Chapter 2.) for officeholder to attend ballot measure committee fundraiser." Fair Political Practices Commission Chapter 8.44 Campaign Manual 2 advice©fppc.ca.gov April 2016 rat Ara tffk Schedule E Type or print in ink. SCHEDULE Amounts may be rounded Statement covers period CALIFORNIA /��`0 Payments Made to whole dollars. �}V from 7/1/XX FORM 12/31/XX XX XX / SEE INSTRUCTIONS ON REVERSE through Page of NAME OF FILER I.D.NUMBER Manuel Alvarez for Mayor 20XX 12344XX CODES: If one of the following codes accurately describes the payment,you may enter the code. Otherwise, describe the payment. CMP campaign paraphemalia/misc. MBR member communications RAD radio airtime and production costs CNS campaign consultants MTG meetings and appearances RFD returned contributions CTB contribution(explain nonmonetary)* OFC office expenses SAL campaign workers'salaries CVC civic donations PET petition circulating TEL t.v.or cable airtime and production costs FIL candidate filing/ballot fees Pl-10 phone banks TRC candidate travel,lodging,and meals FND fundraising events POL polling and survey research TRS staff/spouse travel,lodging,and meals IPD independent expenditure supporting/opposing others(explain)* POS postage,delivery and messenger services TSF transfer between committees of the same candidate/sponsor LEG legal defense PRO professional services(legal,accounting) VOT voter registration UT campaign literature and mailings PRr print ads WEB information technology costs(intemet,e-mail) 0 NAME AND ADDRESS OF PAYEE 0 0 (IF COMMITTEE,ALSO ENTER I.D.NUMBER) CODE OR DESCRIPTION OF PAYMENT AMOUNT PAID Del Norte County Bank(Visa) 8995 Pine Street,Crescent City,CA 95531 $15,000 Subvendor: Mailings and More $14,500 LIT 855 Redwood Street,Oakmont,CA 95443 Lam and Pettit Consultants See Schedule G for subvendors 2720 P Street PRO $20,000 Crescent City,CA 95531 'Payments that are contributions or independent expenditures must also be summarized on Schedule D. SUBTOTAL$ 35,000 chedule E Summary 1. Itemized payments made this period.(Include all Schedule E subtotals.) $ 37,200 2. Unitemized payments made this period of under$100 $ 3,500 �r 3. Total interest paid this period on loans.(Enter amount from Schedule B,Part 1,Column(e).) $ 250 4. Total payments made this period.(Add Lines 1,2,and 3.Enter here and on the Summary Page,Column A,Line 6.) TOTAL $ 40,950 Schedule E SCHEDULE E(CONT.) Type or print in ink. Statement covers period 4 A 0 (Continuation Sheet) Amounts may be rounded CALIFORNIA Vh Payments Made to whole dollars. from 7/1/XX FORM throw h 12/31/XX XX XX SEE INSTRUCTIONS ON REVERSE g Page of NAME OF FILER In.NUMBER Manuel Alvarez for Mayor 20XX 12344XX CODES: If one of the following codes accurately describes the payment,you may enter the code. Otherwise, describe the payment. CMP campaign paraphernalia/misc. MBR member communications RAD radio airtime and production costs CNS campaign consultants MTG meetings and appearances RFD returned contributions CTB contribution(explain nonmonetary)* OFC office expenses SAL campaign workers'salaries CVC civic donations PET petition circulating TEL t.v.or cable airtime and production costs FIL candidate filing/ballot fees PHO phone banks TRC candidate travel,lodging,and meals FND fundraising events POL polling and survey research TRS staff/spouse travel,lodging,and meals IND independent expenditure supporting/opposing others(explain)* POS postage,delivery and messenger services TSF transfer between committees of the same candidate/sponsor LEG legal defense PRO professional services(legal,accounting) VOT voter registration UT campaign literature and mailings PRT print ads WEB information technology costs(intemet,e-mail) NAME AND ADDRESS OF PAYEE CODE OR DESCRIPTION OF PAYMENT AMOUNT PAID (IF COMMITTEE,ALSO ENTER I.D.NUMBER) Del Norte County Independent Central Committee(ID 11852XX) 18885 Ocean Blvd. CTB $500 Crescent City,CA 95531 Manuel Alvarez Reimbursement of filing fee 4245 McDow Street $1,500 Oakmont,CA 95443 Nelson Legal Group,LLC 4950 Professional Blvd. PRO $200 Crescent City,CA 95531 Fair Political Practices Commission Chapter 8.45 Campaign Manual 2 advice @fppc.ca.gov April 2016 11,11•1. M rn ` , . op n e Fi c Vi ten- _ ®e 0 Name and Address of Payee The spouse or Itemize each payment of$100 or more made to a single payee during registered domestic partner elected oer the reporting p eriod, and an y payments totalin g $100 or more made or a can di dat e for el ective during the period for a single product of service. Include the name, office may not receive, in street address, city, state, and zip code of the payee. Do not use exchange for any services rendered,compensation a post office box number when reporting the address of a payee or from campaign funds held Creditor. by a controlled committee of the officer or candidate. 0 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 460, Schedule E instructions. If none of the codes listed on Schedule E fully explains the expenditure, leave the code column blank and Campaign funds provide a brief description of the goods or services purchased. may be used only for certain types of legal payments. See Chapter If several expenditures are made to one vendor during the same 5 for information about reporting period, all of the payments to the vendor may be reported the permissible uses of campaign funds. in a single record. When coding the expenditures, use the code that represents the largest share of the expenditures, and the description field for the other codes or a description. Alternatively, each expenditure may be reported separately by category. For expenditures that are nonmonetary contributions or independent expenditures, provide the applicable code ("CTB" or "IND") and 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. Nod Fair Political Practices Commission Chapter 8.46 Campaign Manual 2 advice @fppc.ca.gov April 2016 0 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. 0 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. Now Fair Political Practices Commission Chapter 8.47 Campaign Manual 2 advice @fppc.ca.gov April 2016 SCHEDULE F Schedule F Type or may in ink. Statement covers period CALIFORNIA /�6O Amounts may be rounded �} Accrued Expenses(Unpaid Bills) to whole dollars. from 7/1/XX FORM through 12/31/XX XX SEE INSTRUCTIONS ON REVERSE Page of NAME OF FILER I.D.NUMBER Manuel Alvarez for Mayor 20XX 12344XX CODES: If one of the following codes accurately describes the payment, you may enter the code. Otherwise, describe the payment. CMP campaign paraphemalia/misc. MBR member communications RAD radio airtime and production costs CNS campaign consultants MTG meetings and appearances RFD returned contributions CTB contribution(explain nonmonetary)* OFC office expenses SAL campaign workers'salaries CVC civic donations FET petition circulating TEL t.v or cable airtime and production costs FIL candidate filing/ballot fees PHO phone banks TRC candidate travel,lodging,and meals FND fundraising events POL polling and survey research TRS staff/spouse travel,lodging,and meals IND independent expenditure supporting/opposing others(explain)* FOS postage,delivery and messenger services TSF transfer between committees of the same candidate/sponsor LEG legal defense PRO professional services(legal,accounting) VOT voter registration UT campaign literature and mailings PRT print ads WEB information technology costs(intemet,e-mail) O NAME AND ADDRESS OF CREDITOR © CODE OR © (a) (b) (c) (d) OUTSTANDING AMOUNT INCURRED AMOUNT PAID OUTSTANDING (IF COMMITTEE,ALSO ENTER I D.NUMBER) DESCRIPTION OF PAYMENT BALANCE BEGINNING THIS PERIOD THIS PERIOD BALANCE AT CLOSE OF THIS PERIOD ALSO REPORT ON E) OF THIS PERIOD Nelson Legal Group,LLC PRO 4950 Professional Blvd. $2,000 -0- $200 $1,800 Crescent City,CA 95531 Tri Cities Bank(Mastercard) 9650 Main Street -0- $1,750 -0- $1,750 Crescent City,CA 95531 Subvendor: CMP Home Depot $750 750 Industrial Way,Oakmont,CA 95443 •Paymerds that are conributions or independent expenditures must also be SUBTOTALS$ 2,000 $ 1,750 $ 200 $ 3,550 summarized on Schedule D. Schedule F Summary 1. Total accrued expenses incurred this period.(Include all Schedule F,Column(b)subtotals for 1,750 accrued expenses of$100 or more,plus total unitemized accrued expenses under$100.) INCURRED TOTALS$ NINO 2. Total accrued expenses paid this period. (Include all Schedule F,Column(c)subtotals for payments on 200 accrued expenses of$100 or more,plus total unitemized payments on accrued expenses under$100.) PAID TOTALS$ 3. Net change this period.(Subtract Line 2 from Line 1. Enter the difference here and 1,550 on the Summary Page,Column A, Line 9.) NET$�a h.en.oAn.RNmee FPPC Form 460(January/05) FPPC Toll-Free Helpline:866/ASK-FPPC(866/275-3772) (Unpaid Bills) 0 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 the creditor. Do not use post office box numbers. Continue to list an unpaid bill until it is paid off. 0 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 Commission Chapter 8.48 Campaign Manual 2 advice@fppc.ca.gov April 2016 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 of the accrued expenses should be used, and the description field may 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 ("CTB" or "IND") and 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 also must be disclosed on Schedule D. 0 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 itemizing payments of$100 or more on Schedule F, itemize the 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 .,,,estimated amount was reported; or 2) make an adjustment on the next Fair Political Practices Commission Chapter 8.49 Campaign Manual 2 advice @fppc.ca.gov April 2016 campaign statement by showing the difference between the estimated amount and the actual amount in column (b), "Amount Incurred This Ex 8.16-On its second preelection statement, Period." If the actual amount is less than the estimate, the amount the committee's treasurer "" listed in column (b) should be a negative number and subtracted reported an estimated accrued expense of$5,000 from the totals. When reporting estimated amounts or corrections to owed to ABC Printing. estimated amounts, note that fact on the campaign statement. An invoice was received during the next reporting period showing the actual Forgiven Accrued Expenses or Third Party Payments amount owed as$4,500. On Schedule F, column (a) If a creditor reduces or forgives a debt previously reported on of its next statement,the Schedule F, or if another pays a debt for the committee: committee accrued report an person p p y outstanding accrued expense of$5,000. In column (b),the • Indicate that the debt was forgiven, reduced, or paid by a amount incurred this period third party and enter"See Schedule C" in the "Description of will be a negative The committee paid id the Payment" column. Also report the creditor or payor and the entire bill and therefore will amount as a nonmonetary contribution on Schedule C. report$4,500 as the amount paid this period in column (c),with a zero balance in • Report the amount forgiven, reduced, or paid by a third party in column (d). the "Amount Paid This Period" column and indicate that it was a forgiveness or third party payment or report the amount as a negative number in the "Amount Incurred This Period" column. Do not report the amount on Schedule E. If the decision to forgive or reduce the debt is based on a bona fide business judgment that all or part of the debt is uncollectible, the creditor may not be making a contribution. Contact the FPPC for assistance. 0 Schedule F Summary Complete the Schedule F Summary by entering the total amount of accrued expenses incurred on Line 1 and the total amount of accrued expenses paid 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. Nor Fair Political Practices Commission Chapter 8.50 Campaign Manual 2 advice@fppc.ca.gov April 2016 Outstanding Accrued Expenses (Summary Page, Column B, Line 9) 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 received an invoice from the vendor yet? 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 report an estimate. Once the committee is made aware of the 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 Commission Chapter 8.51 Campaign Manual 2 advice @fppc.ca.gov April 2016 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 subvendors must be reported on the first statement disclosing the accrued expense owed to the credit card company. On subsequent statements, only the credit card company must be itemized. Ntiod Fair Political Practices Commission Chapter 8.52 Campaign Manual 2 advice @fppc.ca.gov April 2016 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 may report the amount of personal funds used on Schedule C as nonmonetary contributions (itemize purchases 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. Non-disclosure of the payments is a violation of the Act. All future payments must be made from the campaign bank account; personal funds must be deposited into the account before making expenditures. or Independent Contractor on ScheduleG Schedule G is used to report payments made by agents (such as campaign workers) and independent contractors (such as consulting firms or advertising agencies) on behalf of the committee. This 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 payment information no later than three working days prior to the filing deadline 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 with the required payment information within 24 hours. Fair Political Practices Commission Chapter 8.53 Campaign Manual 2 advice @fppc.ca.gov April 2016 Schedule G SCHEDULE G Type or print in ink. Payments Made by an Agent or Independent Amounts may be rounded Statement covers period CALIFORNIA 460 Contractor(on Behalf of This Committee) to whole dollars. from 7/1/XX FORM through 12/311)0( Pa e XX of XX led SEE INSTRUCTIONS ON REVERSE g NAME OF FILER I.D.NUMBER Manuel Alvarez for Mayor 20XX 12344XX NAME OF AGENT OR INDEPENDENT CONTRACTOR Lam and Pettit Consultants CODES: If one of the following codes accurately describes the payment, you may enter the code. Otherwise, describe the payment. CMP campaign paraphemalia/misc. MBR member communications RAD radio airtime and production costs CNS campaign consultants MTG meetings and appearances RFD returned contributions CTB contribution(explain nonmonetary)* OFC office expenses SAL campaign workers'salaries CVC civic donations PET petition circulating TEL t.v.or cable airtime and production costs FIL candidate filing/ballot fees PI-10 phone banks TRC candidate travel,lodging,and meals FND fundraising events POL polling and survey research TRS staff/spouse travel,lodging,and meals IND independent expenditure supporting/opposing others(explain)* PCS postage,delivery and messenger services TSF transfer between committees of the same candidate/sponsor LEG legal defense PRO professional services(legal,accounting) VOT voter registration UT campaign literature and mailings PRT print ads MB information technology costs(intemet,e-mail) 0*Payments that are contributions or independent expenditures must also be summarized o Schedule D. NAME AND ADDRESS OF PAYEE OR CREDITOR ODE OR DESCRIPTION OF PAYMENT ()AMOUNT PAID OF COMMITTEE,ALSO ENTER I .NUMBER) KXTL Radio 5656 Westside Way RAD $2,000 Oakmont,CA 95443 Good Day Oakmont 2620 H Street TEL $7,000 Oakmont,CA 95443 Northwest Airlines 10/15/XX:Sacramento,Airfare to Attend Meeting(1, 2500 Crosby Circle TRC Consultant) $155 Chicago,IL 60606 Albino's Italian Eats 7/10/XX:Committee Staff Meeting(4,Candidate and 1325 Sicily Street MTG Treasurer) $125 Oakmont,CA 95443 Attach additional information on appropriately labeled continuation sheets. TOTAL* $ 9,280 Do not transfer to any other schedule or to the Summary Page.This total may not equal the amount paid to the agent or independent contractor as reported on Schedule E. FPPC Form 460(January/05) FPPC Toll-Free Helpline:866/ASK-FPPC(866/275-3772) ° Agent or Independent Contractor) 0 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, and zip code of the payee or creditor. Do not use a post office box number. 0 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 Aid Fair Political Practices Commission Chapter 8. 54 Campaign Manual 2 advice @fppc.ca.gov April 2016 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. 0 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. xc , Schedule H Most local committees • Schedule H is used to report loans made by the committee. Except will not make loans to others. If there is nothing for committees controlled by a candidate for state elective office, to report on Schedule H,the campaign funds may be used to make loans to other political schedule does not need to be included with the Form committees. (Loans to state candidate committees are subject to 460. Simply enter a zero or limits.) the word "none" on Line 7 of the overall Summary Page. Campaign funds may also be used to make loans to bona fide charitable, educational, civic, religious, or similar tax-exempt, nonprofit organizations, so long as the loan does not personally benefit the officeholder, candidate, committee treasurer, or any individual with If a primarily formed authority to approve the expenditure of campaign funds, or any such committee makes contributions(including person's immediate family member. The loan must be reasonably loans)to candidates, related to a political, legislative, or governmental purpose. officeholders, or committees (other than to the candidate for which the committee is primarily formed), it may qualify as a different type of committee with different reporting obligations. Contact the FPPC for assistance. Fair Political Practices Commission Chapter 8.55 Campaign Manual 2 advice @fppc.ca.gov April 2016 m_._ SCHEDULE H Schedule H Type or print in ink. Statement covers period A O Amounts may be rounded 7/1/XX CALIFORNIA Vh Loans Made to Others* to whole dollars. from FORM SEE INSTRUCTIONS ON REVERSE through 12/31/XX Page XX of XX *id NAME OF FILER I .NUMBER Manuel Alvarez for Mayor 20XX 12344XX 0 FULL NAME,STREET ADDRESS AND ZIP CODE IF AN INDIVIDUAL,ENTER (a) OAMOUNT OYMENT OR STA�DIN lel © (A (ILLATIVE OCCUPATION AND EMPLOYER TSTANDIN NTERVED ORIGINAL LOANS OF RECIPIENT BALANCE LOANED THIS BALANCE AT RECEIVED AMOUNT OF LOANS IF COMMITTEE,ALSO ENTER I.D.NUMBER) (IF SELF-EMPLOYED ENTER BEGINNING THIS FORGIVENESS CLOSE OF THIS NAME OF BUSINESS) PERIOD PERIOD THIS PERIOD" PERIOD LOAN TO DATE Committee for Bike Lanes in Oakmont, PAID CALENDAR YEAR Yes on Measure E(ID 12456XX) $ 0- $ 1,000 5 % $ 1,000 $ 1,000 1500 D Street i FORGIVEN RAE III PER ELECTION" Oakmont,CA95443 -0- 1,000 s $ $ 0- None $ -0- 7/15/XX $ N/A DATE DUE DATE INCURRED `Loans that are contributions to another candidate or committee must also be summarized on Schedule D. Loans forgiven must also be reported on Schedule E. SUBTOTALS $ 1,000 $ -0- $ 1,000 $ -0- '' (Enter(e)on S,hod,tln I line 41 chedule H Summary I3.I Loans made this period 1,000 (Total Column(b)plus unitemized loans of less than$100.) "If Required Payments received on loans $ (Total Column(c)plus unitemized payments of less than$100.) Net change this period. (Subtract Line 2 from Line 1.) $ NET $ 1,000 (Enter the net here and on the Summary Page,Column A,Line 7.) May be a neami a number) Others `0' 0 Recipient Information For each loan of$100 or more that was made or outstanding during the reporting period, provide the recipient's full name and street address, including the zip code. If the recipient is an individual, provide the 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 0 Outstanding Balance Beginning This Period Enter the outstanding loan balance at the beginning of this reporting period (Column (d) of the last report filed). If the loan was received this period, Column (a) should be left blank. 1 Fair Political Practices Commission Chapter 8.56 Campaign Manual 2 advice @fppc.ca.gov April 2016 O Amount Loaned This Period Enter the amount loaned to the recipient during this reporting period. *Nov If the loan was made in a previous reporting period, Column (b) should be left blank. O 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. O 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. O Interest Received Enter the interest rate and amount of interest received on the loan during this reporting period. Interest received is reported separately `k`"' from payments received on the loan principal. Interest received is also transferred to the Schedule I Summary. O Original Amount of Loan Enter the original amount of the loan and the date it was made. If this is the first time the loan is being reported, this will be the same amount as reported in Column (b). O 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 state candidate's committee, including loans, may not exceed the `4o° applicable limit. (Loans to candidates or other committees must also be reported on Schedule D.) Fair Political Practices Commission Chapter 8.57 Campaign Manual 2 advice @fppc.ca.gov April 2016 1■ 0 Schedule H Summary Complete the Schedule H Summary by entering the total amount of loans made on Line 1 and the total amount of loan payments received 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 Made (Summary Page — Column 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. Cash cm 'cheduieI `' Schedule I is used to report increases to the committee's cash position 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 Commission Chapter 8. 58 Campaign Manual 2 advice©fppc.ca.gov April 2016 • 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-A television was office. (See Campaign Disclosure Manual 1.) donated by Seaside TV Sales for your committee's auction. The television's fair Donated Items market value was$1,000. A person paid $1,500 for When reporting sources who have purchased donated items (e.g., the television. Report the items sold at an auction), report the amount received, up to the fair purchaser information and report$1,000 in the amount market value, on Schedule I. Any amount in excess of the fair market column of Schedule I. On value is reported as a contribution on Schedule A. Schedule A also report the purchaser as a contributor of$500,the amount over Uncashed Checks the fair market value. Seaside will be reported If the committee writes a check that is never deposited or negotiated, as a contributor of$1,000 on Schedule C for the report the amount of the uncashed check on Schedule I. nonmonetary contribution of the television. Decreases to Cash All decreases to cash must be reported as expenditures on Schedule E or H. Fair Political Practices Commission Chapter 8.59 Campaign Manual 2 advice @fppc.ca.gov April 2016 Schedule I Type or print in ink. SCHEDULE I Miscellaneous Increases to Cash Amounts may be rounded Statement covers period CALIFORNIA A60 to whole dollars. 7/1/XX FORM "'1'V from t 12/31/XX through Page XX of XX SEE INSTRUCTIONS ON REVERSE NAME OF FILER I.D.NUMBER Manuel Al for Mayor 20XX 12344XX DATE TIP FULL NAME AND ADDRESS OF SOURCE 0 DESCRIPTION OF RECEIPT 4 AMOUNT OF RECEIVED (IF COMMITTEE,ALSO ENTER I .NUMBER) INCREASE TO CASH Alvarez for City Council 20XX Transferred funds 7/5/XX 225 Presley Street (ID 12257XX) $3,000 Oakmont,CA 95443 , e Attach additional information on appropriately labeled continuation sheets. SUBTOTALS 3,000 Schedule I Summary 1 Itemized increases to cash this period. $ 3,000 2. Unitemized increases to cash of under$100 this period $ 0 3.Total of all interest received this period on loans made to others.(Schedule H,Column(e).) $ -0- 4.Total miscellaneous increases to cash this period. (Add Lines 1,2,and 3. Enter here and on the Summary Page, Line 14.) TOTAL $ 3,000 rpm.rorm sec(January/us) FPPC Toll-Free Helpline:866/ASK-FPPC(866/275-3772) Increases to Cash) O Date Received Report the date the committee received the miscellaneous receipt. O Source Information Itemize sources of$100 or more. Provide the full name, street address, city, state, and zip code of the source. Post office box numbers are not acceptable. O Description of Receipt Provide a description of the receipt (e.g., refund on room deposit for fundraiser, interest earned on loans made to others). O Amount of Increase Enter the amount of the receipt. NS Fair Political Practices Commission Chapter 8.60 Campaign Manual 2 advice @fppc.ca.gov April 2016 © Schedule I Summary Navy 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. To change or provide information missing from a previously filed Form 460, complete a new Cover Page and check the "Amendment" box under "Type of Statement." Also check the box indicating the type 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 applicable. The amendment is filed with each of the filing officers that received the original filing. Fair Political Practices Commission Chapter 8.61 Campaign Manual 2 advice @fppc.ca.gov April 2016 Au fi on yy The following Government Code sections and Title 2 regulations provide authority for the information in this chapter: Government Code Sections 81004 Reports and Statements; Perjury; Verification. 81004.5 Reports and Statements; Amendments. 82013 Committee. 82015 Contribution. 82018 Cumulative Amount. 82025 Expenditure. 82025.5 Fair Market Value. 82044 Payment. 84105 Notification of Contributors. 84203 Late Contribution; Reports. 84211 Contents of Campaign Statement. 84212 Forms; Loans. 84213 Candidate Verification. 84216 Loans. 84615 Campaign Reports and Statements — Electronic Filing for Local Agencies. 84216.5 Loans Made by a Candidate or Committee. 84302 Contributions by Intermediary or Agent. 84303 Expenditures by Agent or Independent Contractor. 84306 Contributions Received by Agents of Candidates and Committees. 85201 Campaign Bank Account. 85700 Donor Information Requirements; Return of Contributions. 89511.5 Use of Personal Funds for Incumbent Elected Officers. 89515 Use of Campaign Funds for Donations and Loans. Title 2 Regulations 18215 Contribution. 18215.1 Contributions; When Aggregated. 18216 Enforceable Promise to Make a Payment. 18225 Expenditure. Fair Political Practices Commission Chapter 8.62 Campaign Manual 2 advice @fppc.ca.gov April 2016 18421 Cash Equivalents. 18421.1 Disclosure of the Making and Receipt of Contributions. *4"." 18421.2 Street Address. 18421.3 Reporting of Contributions and Expenditures Collected by Contract Vendors or Collecting Agents. 18421.5 Reporting an Expenditure for Paid Online Communications. 18421.6 Reporting Accrued Expenses. 18421.7 Reporting an Expenditure for a Gift, a Meal or Travel. 18421.9 Reporting Expenditures Charged to a Credit, Debit or Charge Card by a Candidate or Committee. 18423 Payments for Personal Services as Contributions and Expenditures. 18427 Duties of Treasurers and Candidates with Respect to Campaign Statements. 18427.1 Notification to Contributors of Filing Obligations. 18428 Reporting of Contributions and Independent Expenditures Required to be Aggregated. 18431 Reporting of Expenditures by an Agent or Independent Contractor. ' 18432.5 Intermediary. 18526 Reimbursement of Expenditures. 18533 Contributions from Joint Checking Accounts. 18570 Return of Contributions with Insufficient Donor Information. NioNo Fair Political Practices Commission Chapter 8.63 Campaign Manual 2 advice @fppc.ca.gov April 2016 WHEN AND WHERE TO FILE THE ois FORM 460 `` This chapter reviews when and where committees file the Recipient 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 and statements filed under the Political Reform Act are public records available for public inspection. Candidates and officeholders who do not have an open committee during a calendar year are not required to file the Form 460, but may be required to file the Officeholder/Candidate Campaign Statement— Short Form (Form 470). Review Chapter 1 for information about the Form 470, including when and where to file. Primarily formed committees that have minimal activity in a reporting period may be eligible to use the Recipient Committee Campaign Statement—Short Form (Form 450) or the Semi-Annual Statement of No Activity (Form 425) instead of the Form 460. These forms are filed at the same time and locations as the Form 460. Filing Schedules: The FPPC posts on its website filing schedules for specific election dates (i.e., June and November elections). In if the FPPC's website • addition, county elections offices and city clerks often post filing does not have a filing schedules. Local candidates and committees should contact their election date, contact your local filing officer as some local jurisdictions may require filings in local elections office for addition to what is required by the Political Reform Act. information about the filing deadlines. The committee treasurer is responsible for meeting all applicable filing deadlines. Filing officers are not required to send reminder notices about upcoming deadlines; however, they are required to notify committees that have missed a filing deadline. Fair Political Practices Commission Chapter 9. 1 Campaign Manual 2 advice @fppc.ca.gov April 2016 Deadlines: Except where noted, statements filed on paper must be hand-delivered or postmarked and sent by first-class mail by the due date. Deadlines that fall on a Saturday, Sunday, or official state holiday are extended to the next business day; however, this extension does not apply 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 the next business day. The committee must file a Form 497 within 24 hours. There are no other provisions for extending a deadline. Late Fines: A late filing penalty of up to $10 per day may be assessed Ex 9.1-A county supervisor for each day the statement is late. The FPPC or a local filing officer has a controlled committee. The supervisor is not cannot extend a filing deadline. A committee may request a waiver of seeking reelection and the late fines assessed by the local filing officer or the Secretary of State. committee did not raise or spend any funds during the calendar year. The Failure to File: Filing officers must refer committees to the FPPC or committee must file a semi- another enforcement agency if a committee fails to file a campaign annual statement for the statement. Administrative penalties of up to $5,000 per violation may through June January 1 P p p Y through June 30, due on be assessed. (See Government Code Section 83116.) Committees or before July 31, and a fined by the FPPC Enforcement Division are listed on the FPPC the period semi-anoal Julsyatement for y 1 through website. December 31, due on or before January 31. Semi-Annual Statements Ex 9.2-A primarily formed committee is formed in May Most committees file a semi-annual statement for each half of the year, to support a city council whether or not they receive contributions or make expenditures during eandi in th lectioonnte. The c o November eommittee the six-month period. An existing committee or a committee newly must file a semi-annual formed during the first six months of the year must file a semi-annual statement for the period covering January 1 through statement due on or before July 31 for the period covering January 1 June 30, due on or before through June 30. July 31. In October,the committee must file the two required preelection Committees must also file a semi-annual statement due on or before statements (due dates and January 31 of the following year for the period covering July 1 through periods covered are listed on the filing schedule). The December 31. The period covered for a committee newly formed committee must continue to during the last six months of the year will be January 1 through file semi-annual statements ,,w December 31. until it terminates. Fair Political Practices Commission Chapter 9.2 Campaign Manual 2 advice @fppc.ca.gov April 2016 Exception: Unpaid Elected Officeholders, Judges, and Judicial Candidates Unpaid officeholders (defined in the Act as those who receive less than $200 per month for serving in office) and judges are not required to file semi-annual statements (i.e., Form 460 or Form 470) during any 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 official's fixed compensation for services (i.e., salary) need be counted. Payments for health benefits, reimbursement of expenses (including travel expenses), or per diem received from the elected official's 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 not required to file the Form 460 or Form 470. Some local agencies Preelection Statements require additional statements before and In addition to semi-annual statements, candidate controlled after an election. Local committees and primarily formed committees must file two preelection committees should contact the county elections office statements before the election in which the candidate is listed on the or city clerk to determine if ballot. For specific reporting periods and filing deadlines, refer to additional statements are required. Local campaign the filing schedules on the FPPC's website or contact the local filing ordinances are also posted officer. The second preelection statement must be filed by personal on the FPPC website. 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 running unopposed is not required to file preelection statements. In addition, a candidate who withdraws from an election and will not be listed on the ballot is not required to file preelection statements. Fair Political Practices Commission Chapter 9.3 Campaign Manual 2 advice©fppc.ca.gov April 2016 Recall Elections — Quarterly Reports Ex 9.3-The local district A committee established by an officeholder who is the subject of attorney is the subject of a `w•r` recall election being held a recall election must file campaign statements (Form 460) on a in September. In March, quarterly basis until the semi-annual period in which the recall election he formed a separate committee to oppose the is held. The quarterly filing schedule is: recall. The committee must file quarterly statements on Period Covered Filing Deadline April 30 and July 31. During the period covering July 1 January 1 - March 31 April 30 through December 31,the April 1 - June 30 July 31 committee must file two July 1 - September 30 October 31 preelection statements in connection with the October 1 - December 31 January 31 election, and a semi-annual statement for the period ending December 31, due During the semi-annual period in which the recall election is held, the on or before January 31 of committee must file two preelection statements and a semi-annual the following year. After statement on the schedule provided by the filing officer. the January 31 filing,the committee will file semi- annual statements until it Amendments 4 terminates. Except for amendments required to provide missing contributor information (see Chapter 2), there is no specified deadline for filing w,,, amendments to campaign statements. However, amendments should be filed as soon as practicable in the same location(s) as the original. Faxing and E-Mailing Statements Campaign statements that contain 30 pages or less may be faxed or e-mailed (if the local filing officer will accept an e-mailed statement) provided that the transmitted copy of the campaign statement is the exact copy of the original version. The original statement (with an original signature) must be sent by first-class mail, guaranteed overnight delivery, or personal delivery within 24 hours of the filing deadline. .} Candidates, candidate controlled committees, and primarily formed committees file statements based on the office sought by the candidate. The following chart summarizes the locations where ., campaign statements (i.e., Forms 450, 460, 470) are generally filed. Fair Political Practices Commission Chapter 9 4 Campaign Manual 2 advice @fppc.ca.gov April 2016 Certain campaign activity may trigger reports that must be filed in another location (see Chapter 10.) An "original" campaign statement is one containing the original signature of the officeholder or candidate Ne and/or the treasurer or assistant treasurer. Candidate/Officeholder/ Where to File What to File Primarily Formed Committee City Offices City Clerk Original and one copy County Offices County Elections Offices Original and one copy Multi-County Offices County with the largest number Original and one copy Local agencies with jurisdiction of registered voters in the in more than one county jurisdiction County of Domicile, if different One copy Judges and Judicial Electronic Filers Candidates Secretary of State Electronically and one copy Non-Electronic Filers Secretary of State Original and one copy County of Domicile One copy Electronic Filing Judges and judicial candidates (including superior court judges and candidates) that have raised or spent $25,000 or more must file electronically with the Secretary of State. The Act does not require other local candidates and committees to file electronically. Some local agencies may require that campaign statements be filed electronically pursuant to a local ordinance. In those jurisdictions, paper copies may not be required, but most committees must submit a paper copy with a "wet signature" to the filing officer. Multiple Controlled Committees in Same Jurisdiction In general, a candidate or elected officer may only control one committee and one bank account per election under the Act's one bank account rule. (See Chapter 1.) However, if a candidate or elected officer controls more than one committee in the same jurisdiction (i.e., different terms of the same elective office, officeholder account, legal defense fund, or ballot measure committee), each of " ` the committees must file preelection statements on the dates the Fair Political Practices Commission Chapter 9.5 Campaign Manual 2 advice @fppc.ca_gov April 2016 candidate or elected officer is required to file in connection with his 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: A candidate's election committee is not required to file based on 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 office and elective local office, or for elective office in two different local jurisdictions, he or she must file campaign statements for all committees he or she controls with both jurisdictions on the dates the candidate is required to file semi-annual and preelection statements. The original statement should be filed with the relevant jurisdiction and a copy with the other jurisdiction. If a local candidate or officeholder also controls a state committee that is required to file electronically, the local committee must file the Form 460 electronically with the Secretary of State each time the Form 460 is due for either committee. Ex 9.4-A school board member has an open committee from the school board election. The school board member opens a committee to run for mayor in her city. As an incumbent school board member and a candidate for mayor, she must file campaign statements for both committees with both the county elections office and the city clerk. Preelection statements and semi-annual statements required to be filed in connection with the mayoral election are filed as follows: • Mayoral Committee • City Clerk—Original and one copy • County Elections Office—One copy • School Board Committee • County Elections Office—Original and one copy City Clerk—One copy Fair Political Practices Commission Chapter 9.6 Campaign Manual 2 advice @fppc.ca.gov April 2016 Ex 9.5 -A city council member has an open committee from the city council election. The council member opens a committee to run for State Assembly. Semi-annual and preelection statements required in connection with the State Assembly election are filed as follows: • Assembly Committee • Electronic Filers: Secretary of State only— Electronically and one copy • Non-Electronic Filers: Secretary of State—Original and one copy • Non-Electronic Filers: City Clerk—One copy • City Council Committee • City Clerk—Original and one copy • Secretary of State—One copy (the copy must be filed electronically if the Assembly Committee is an electronic filer) An officeholder who does not have a controlled committee may file the Form 470 by July 31 for the position held. If the officeholder '`NO subsequently opens a committee to run for a different office, he or she must file the Form 460 for the required preelection and semi-annual statements. Since the Form 470 was filed in connection with a position for which the candidate does not have a committee, a Form 470 Supplement is not required. However, if the officeholder opens a committee prior to June 30 for election to a different office, the Form 460 must be filed by July 31 for both the position held and the office sought. The officeholder may file one Form 460 and list both the position held and the office sought on the Cover Page, Part 5. Fair Political Practices Commission Chapter 9.7 Campaign Manual 2 advice @fppc.ca.gov April 2016 .111_-, 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 for that race. When must I file the first Form 460? As a city council member, you must file a semi-annual statement for the period January 1 through June 30 on or before July 31. Since you do not have an open city council committee, you may file the Form 470 instead of the Form 460. By the first preelection deadline for the county election, file the Form 460 with the county elections officer, as well as a copy with the city clerk. B. In June, I was elected to the city council. After filing the semi-annual statement due on July 31, I paid off my remaining bills and terminated my committee in August by filing a terminating Form 410 and Form 460. I will not ,,, engage in any further campaign activities. Am I required to file another Form 460 by January 31 of the following year as a semi-annual statement? As an elected officer, you must file semi-annual statements each year. You may designate the Form 460 you file in August 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 expenditures through December 31, file an amendment to your statement no later than January 31 of the following year. If you receive $200 or more in a calendar month for your elected position, you will be required to file the Form 470 by July 31 every year, even though you have terminated your committee. Fair Political Practices Commission Chapter 9.8 Campaign Manual 2 advice @fppc.ca.gov April 2016 A The following Government Code sections and Title 2 regulations provide authority for the information in this chapter: Government Code Sections 81004.5 Reports and Statements; Amendments. 81007 Mailing of Report or Statement. 81007.5 Faxing of Report or Statement. 81008 Public Records; Inspection; Reproduction; Time; Charges. 82027 Filing Officer. 83116 Violation of Title. 84200 Semi-Annual Statements. 84200.5 Preelection Statements. 84200.7 Time for Filing Preelection Statements for Elections Held in June or November of an Even-Numbered Year. 84200.8 Time for Filing Preelection Statements for Elections Not Held in June or November of an Even-Numbered Year. 84215 Campaign Reports and Statements; Where to File. 84605 Who Shall File Online. 84615 Electronic Filing for Local Agencies. 91013 Late Filing of Statement or Report; Fees. Title 2 Regulations 18110 Duties of Filing Officers — Campaign Statements. 18116 Reports and Statements; Filing Date. 18426 Semi-Annual Statement Early Filing. 18531.5 Recall Elections. Fair Political Practices Commission Chapter 9 9 Campaign Manual 2 advice @fppc.ca.gov April 2016 ADDITIONAL REPORTS 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 the committee's activity. For example, most committees must file the 24-hour Contribution Report (Form 497). Primarily formed committees making independent expenditures must file the independent expenditure reports discussed below. A candidate's controlled committee for his or her election will likely not be filing independent expenditure reports because it is making direct campaign expenditures for the candidate's election to office. This chapter reviews the following special reports that may be required. • 24-Hour Contribution Reports (Form 497) _ • 24-Hour Independent Expenditure Reports (Form 496) • Verification of Independent Expenditures (Form 462) • Special Odd-Year Reports (Form 460) • Paid Spokesperson Reports (Form 511) • Reports of Communications Identifying State Candidates (Form E-530) Fair Political Practices Commission Chapter 10. 1 Campaign Manual 2 advice @fppc.ca.gov April 2016 FPPC Reporting Forms Your Committee File Nuir 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 of$1,000 or more to support or oppose a single candidate Form 496 or ballot measure during the 90 days before the candidate or measure's election or on the date of the election Makes independent expenditures of$1,000 or more to support or oppose a single candidate Form 462 or ballot measure Makes Payments: Makes contribution(s) totaling $10,000 or more to state officeholders during the first or third Form 460 quarter of an odd-numbered year Makes contributions totaling $1,000 or more to another candidate or ballot measure Form 497 committee during the 90 days before the candidate or measure's election or on the date of 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 expenditures for an individual to appear in a ballot measure advertisement Form 511 Makes payments of$50,000 or more to "feature" a state candidate within 45 days before Form E-530 the candidate's election 6 r � r r z E The 24-hour contribution report provides immediate reporting of contributions received or made near or on the election date. The Form 497 must be filed if a candidate controlled committee or a primarily formed committee: When aggregating • • Receives contributions that total in the aggregate $1,000 contributions from or more from a single source during the 90 days before the a single source, monetary candidate's election, including the date of the election; or contributions, nonmonetary contributions, and loans are included. • Makes contributions that total in the aggregate $1,000 or more to a candidate or a committee primarily formed to support a candidate(s) or ballot measure(s) during the 90 days before the candidate's or measure's election, including the date of the election; or Fair Political Practices Commission Chapter 10.2 Campaign Manual 2 advice @fppc.ca.gov April 2016 • Makes contributions that total in the aggregate $1,000 or more to a state or county political party committee during the 90 days Contributions reported on the Form 497 must `wr, before any state election, including the date of the election. also be disclosed on the committee's next regular Contributions reported on the Form 497 must also be reported on the campaign statement(Form 460 or Form 450). committee's next Form 460. --nEx 10.1-Thirty days before the candidate's election,the candidate's committee received a $500 contribution. Four days later,the same person contributed $600. The candidate's committee must file a Form 497 since $1,000 or more was received from a single source during the 90-day period If a committee makes • before the election. The same person must contribute another$1,000 or a nonmonetary I more in order for a subsequent Form 497 to be required. contribution, it must notify the recipient of the contribution's value within 1 24 hours. Ex 10.2-In June,the candidate's election committee for a November election received a contribution of$2,000. The Form 497 is not required because it was not received during the 90-day period before the November election. In October,the same person made a contribution of$600 to the candidate's committee. The Form 497 is not required until that person contributes$1,000 or more in the 90 days before or on the date of the November election. Contributions received prior to the 90 days before the November election are The 90-day, 24-hour not aggregated with contributions received during the 90-day period. reporting period includes the date of the In some local elections, a candidate's name will not appear on a ballot election. if no other individual runs for that office. Following the determination by the elections official that the candidate's name will not appear on the ballot, the Form 497 is not required to be filed by the candidate even if the candidate's committee receives $1,000 or more during the 90 days before the election, including the date of the election. When and Where to File the Form 497 The Form 497 must be filed within 24 hours of receiving or making 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 the contribution's value within 24 hours by personal delivery, fax, or guaranteed overnight delivery. Fair Political Practices Commission Chapter 10.3 Campaign Manual 2 advice@fppc.ca.gov April 2016 Exceptions: The Form 497 must be filed within 48 hours of receiving a nonmonetary contribution. Filing deadlines are extended to the next business day on Saturdays, Sundays, and official state holidays. However, the extension does not apply on the Saturday, Sunday, or an official state holiday immediately prior to an election. For example, a fundraiser held on a Friday evening results in several individuals making contributions of $1,000 or more. Generally, the committee must file the Form 497 on the following Monday. However, if the fundraiser is held the Friday evening of the week before the election, the "next business day" deadline extension does not apply, so the Form 497 must be filed within 24 hours. The Form 497 is filed in the same location the committee files its regular campaign statements (Form 460 or Form 450) and must be filed by fax, guaranteed overnight delivery service, or personal delivery. Regular mail may not be used. Some local agencies may have an electronic filing system or may accept the Form 497 via e-mail. 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 may, on or before the deadline, file a single 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 nonmonetary contributions is not known at the time of filing, a good 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. Fair Political Practices Commission Chapter 10.4 Campaign Manual 2 advice @fppc.ca.gov April 2016 Clear Page Print Form 497 Contribution Report Type or print in ink. Amounts may ay be rounded to whole dollars. 497 CONTRIBUTION REPORT B to of Date Stamp CALIFORNIA 497 Manuel Alvarez for Mayor 20XX This Filing 5/01/20XX FORM AREA CODE/PHONE NUMBER I.D.NUMBER(if applicable) 1 or•"Ica Ise•n y 707-555-6868 12344XX Report No. STREET ADDRESS El Amendment 225 Presley Street to Report No. CITY STATE ZIP CODE (explain below) kmont CA 95443 No.of Pages 1 0Contribution(s) Received DATE FULL NAME,STREET ADDRESS AND ZIP CODE OF CONTRIBUTOR CONTRIBUTOR IF AN INDIVIDUAL, AMOUNT RECEIVED (IF COMMITTEE.ALSO ENTER I.D.NUMBER) CODE" ENTER OCCUPATION AND EMPLOYER RECEIVED (IF SELF-EMPLOYED.ENTER NAME OF BUSINESS) 4/30/XX Loretta Stone x❑ IND Nurse-Oakmont Hospital $2,000 28 Hemlock Street ❑ COM Oakmont,CA 95434 ❑ OTH ❑Check if Loan ❑ PTY ❑ SCC Provide interest rate 4/30/XX ABC Company ❑ IND $3,000 220 R Street ❑ COM Oakmont,CA 95434 ❑x OTH ❑Check if Loan ❑ PTY ❑ SCC Provide interest rate Completing the Form 497 O Filer Information '"1"'Provide the committee's full name, telephone number, street address, city, state, zip code, and committee ID number. O Date, Report Number, Number of Pages Indicate the date the report is being filed; assign a unique number to each Form 497, such as 1, 2, 3, PR-1, PR-2, PR-3, etc.; and, indicate the number of pages included in the report. O Contributions Received For contributions received, provide: • The date received. • The contributor's full name, street address, and zip code. • The contributor code. For each itemized contributor, check the box indicating whether the contributor is an individual, a committee, "other" (such as a business entity), a political party, **N or a small contributor committee. Fair Political Practices Commission Chapter 10.5 Campaign Manual 2 advice @fppc.ca.gov April 2016 • 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. *soli • The amount of the contribution. Check the box if it was a loan. Contributions Made For contributions made, provide: • The date made. • The recipient's full name, street address, and zip code. • The office sought or held (if the contribution is made to a 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. i Amending the Form 497 To amend a previously filed Form 497, file another Form 497 with the corrected or missing information, assign a new unique identifying number as the Report Number, check the "Amendment" box, and enter the identifying number of the report being amended. Describe the reason for the amendment in the space provided at the bottom of the form. There is no specified deadline for filing amendments; however, amendments should be filed as soon as practicable. Amendments are filed in the same location as the original. Answering Your Form 497 Questions A. Must a candidate file a Form 497 if, during the 90 days before the election, or on the date of the election, she loans her campaign committee $1,000? Yes. A candidate's personal funds that are loaned to or contributed to the committee trigger the Form 497 requirement. Fair Political Practices Commission Chapter 10.6 Campaign Manual 2 advice @fppc.ca.gov April 2016 71_-1_ B. Must a candidate file a Form 497 if, during the 90 days before the election (or on the date of the election), she `'""' transfers campaign funds totaling $1,000 or more from a campaign committee established for a prior office to the campaign committee established for the office she is currently seeking election to? No. Transfers among a candidate's own local campaign 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 individuals. Rather than filing several reports, may the committee file one Form 497 with an estimated value of the nonmonetary contributions anticipated to be received from this source during the 90 days before the election? Yes. The committee may make a good faith estimate of the value that will be received during the period. The Form 497 must be filed within 48 hours of receiving the first $1,000 in 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. Must a committee file a Form 497 when a contributor forgives a loan of$1,000 or more during the 90 days before the election, including the date of the election? Yes. A loan forgiveness is reported as a contribution and triggers the Form 497 requirement. Fair Political Practices Commission Chapter 10.7 Campaign Manual 2 advice @fppc.ca.gov April 2016 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 committee, must the committee for the past election file a Form 497? Yes. When a candidate is in a 90-day reporting period, contributions totaling $1,000 or more to any of the candidate's committees trigger the Form 497 requirement. Ex 10.3-City council As described in Chapter 6, a payment for a communication that candidate Martinez's expressly advocates support of or opposition to a candidate or ballot controlled committee for election to office does not measure, which is not made at the behest of the candidate or measure file independent expenditure committee, is an "independent expenditure." Chapter 6 defines in reports when it pays for detail "expressly advocates" and "made at the behest of and provides election be ause the ete's examples to assist committees in determining whether a payment payments are direct made for a communication is considered an independent expenditure. campaign expenditures made by the candidate. An independent group The Act requires committees making independent expenditures to file sending mailers attacking several forms so that voters are fully informed about who is paying for council opponent candidate without Martithe nez's , the communications that urge voters to support or oppose a particular cooperation, knowledge candidate or ballot measure. Because the affected candidate or or consent of council candidate Martinez, will file measure committee will not report the expenditures, the committee independent expenditure making the independent expenditures must file certain forms at the I reports. same time the candidate is required to file. In addition, a verification \ form that identifies an individual who is responsible for ensuring that the campaign committee's independent expenditures were not coordinated with the listed candidate or ballot measure (or the opponent) must be filed. An independent expenditure of$1,000 or more is reported on each of the forms listed below. The forms are reviewed in the order they will likely be required. • Form 496 (24-Hour Independent Expenditure Report) • Form 462 (Verification of Independent Expenditures) Fair Political Practices Commission Chapter 10.8 Campaign Manual 2 advice©fppc.ca.gov April 2016 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 candidate's controlled committee to 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. *1.011f 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 included in the communication; (2) the non-paying candidate is listed on the same ballot as the paying candidate: and (3) the communication is targeted only to the potential voters in the paying candidate's district. 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. Fair Political Practices Commission Chapter 10.9 Campaign Manual 2 advice @fppc.ca.gov April 2016 Filing Deadlines for Independent Expenditure Forms This chart summarizes the deadlines and filing locations for each of )4411° the independent expenditure forms. Each of the forms is discussed in Ex 10.4-A committee is primarily formed to support detail below. a mayoral candidate. The committee must act totally independent of the mayoral Deadline Form Filing Location candidate's campaign. Seven Within 24 hours 496 Filing officer where days before the election,the election is held committee paid $5,000 for 10 days after first independent 462 FPPC newspaper advertisement a local expenditure newspvaprer urging voters to ex p support the candidate. The primarily formed committee 24-Hour Independent Expenditure Report (Form 496) must file the Form 496. The 24-hour Independent Expenditure Report provides immediate disclosure of independent expenditures made near or on the election Ex 10.5-Ten days before an election, a committee spent date. The Form 496 must be filed if a committee makes independent $1,700 on a mailing that expenditures totaling $1,000 or more to support or oppose a single equally advocated support candidate or a single ballot measure during the 90 days, including the of candidates. The mailing was dotes.done completely date of the election, before the candidate's or measure's election. independent of the candidates. Since the value to each candidate was only Note: The Sacramento Superior Court ruled in Charles R. "Chuck" $850(less than $1,000),the IS Reed v. Fair Political Practices Commission that San Jose Mayor committee is not required to Reed was not subject to independent expenditure restrictions. For file Form 496 for either canddidid ate. more information, contact the FPPC's Legal Division. Three days before the election,the committee Expenditures reported on the Form 496 must also be reported on the independently spent$400 committee's next regular campaign statement (Form 460). The Form for lawn signs advocating support of one of the 462 (Verification of Independent Expenditures) must also be filed. candidates included in the earlier mailing. Because the total spent on behalf of this candidate is now$1,000 or more in the 90 days before the election including the date of the election,the committee must file the Form 496 in connection with (this candidate. lad Fair Political Practices Commission Chapter 10. 10 Campaign Manual 2 advice©fppc.ca.gov April 2016 When and Where to File the Form 496 sse,The Form 496 must be filed within 24 hours of making an independent expenditure of$1,000 or more during the 90 days 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 no deadline extension for filing the Form 496. It must be filed within 24 hours regardless of the day of the week. A separate Form 496 must be filed for each candidate or ballot measure supported or opposed. The Form 496 is filed with the filing officer that receives the campaign 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 influence them. Local Elections: The Form 496 must be filed by fax, guaranteed overnight delivery, personal delivery, or e-mail, if available. Regular mail may not be used. A local ordinance may require that the form be filed electronically. Contact the local filing officer to determine if electronic filing or e-mail is available. State Elections: The Form 496 must be filed electronically with the Secretary of State's office when it is filed in connection with a state candidate or measure. No paper copies are accepted. If the Form 496 is filed in connection with a CaIPERS or CaISTRS election, a copy must also be filed with the relevant board's office. Fair Political Practices Commission Chapter 10. 11 Campaign Manual 2 advice @fppc.ca.gov April 2016 Jurisdiction of Candidate or Measure Supported/ Location of Filing Form 496 Ex 10.6-A city pp councilmember's election Opposed committee made an `'"' Statewide Secretary of State — Electronically independent expenditure of only $8,000 to support a county ballot measure. The Form Senate or Assembly District Secretary of State — Electronically 496 must be filed with the only county elections office. CaIPERS/CaISTRS Secretary of State — Electronically only Also file a copy at CaIPERS/ Ex 10.7 A county supervisor's election CaISTRS board office committee made an Multi-County County with the largest number of independent expenditure of$10,000 to support a registered voters in the jurisdiction state ballot measure. The County County in which the candidate or Form 496 must be filed measure will appear on the ballot. electronically with the Secretary of State's office. LAFCO proposals: County where measure likely to appear on the ballot and the LAFCO. City City in which the candidate or ' measure will appear on the ballot visti Fair Political Practices Commission Chapter 10. 12 Campaign Manual 2 advice @fppc.ca.gov April 2016 496 Independent Expenditure Report Type or print in ink. Amounts m e rounded to whole dollars. 496 INDEPENDENT EXPENDITURE REPORT yplE OF FILER Fate of Date Stamp CALIFORNIA Friends Supporting Alvarez for Mayor 20XX This Filing 06/01/20m FORM 496 AREA CODE/PHONE NUMBER I.D.NUMBER(if applicable) 2 For Official Use Only 707-111-2222 12399XX Report No. STREET ADDRESS ❑Amendment 10 Main Street to Report No. CITY STATE ZIP CODE (explain below) akmont CA 95443 No.of Pages List Only One Candidate or Ballot Measure NAME OF CANDIDATE SUPPORTED OR OPPOSED NAME OF BALLOT MEASURE SUPPORTED OR OPPOSED Manuel Alvarez OFFICE SOUGHT OR HELD DISTRICT NO. SUPPORT OPPOSE BALLOT NO./LETTER JURISDICTION SUPPORT OPPOSE Mayor X elk Independent Expenditures Made Attach additional information on appropriately labeled continuation sheets. DATE DESCRIPTION OF EXPENDITURE AMOUNT Newspaper Advertisement 5/31/20XX (cumulative total: $6,000) $2,000 0 Contributions of$100 or More Received* IF AN INDIVIDUAL,ENTER OCCUPATION DATE FULL NAME,STREET ADDRESS AND ZIP CODE OF CONTRIBUTOR CONTRIBUTOR AND EMPLOYER AMOUNT INTEREST RATES RECEIVED (IF COMMITTEE.ALSO ENTER I.D.NUMBER) CODE (IF SELF-EMPLOYED,ENTER NAME OF BUSINESS) RECEIVED Joe Brown IND Retired If loan, 5/28/20XX 1800 Second Street ❑ OTH $200 enter interest rate,if any Oakmont,CA 95443 ❑ PTY ❑ scc Completing the Form 496 O Filer Information Provide the committee's name, street address, city, state, zip code, telephone number, and committee ID number. O Date, Report Number, Number of Pages Indicate the date the report is being filed; assign a unique number to each Form 496, such as 1, 2, 3, PR-1, PR-2, PR-3, etc.; and, indicate the number of pages included in the report. O Name of Candidate or Ballot Measure Supported or Opposed Provide the name of the candidate supported or opposed and the office sought or held (and district, if applicable). Or, provide the name 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 Commission Chapter 10. 13 Campaign Manual 2 advice @fppc.ca.gov April 2016 © Independent Expenditures Made Generally,the Provide the date the committee made the independent expenditure. "cumulative amount" means the amount of `" In the "Description of Expenditure" field, include a description of independent expenditures the independent expenditure (e.g., radio advertisement, billboard, made in the current calendar mailing) and the cumulative-to-date total for independent expenditures year. relating to each candidate or measure. List the amount of the specific expenditure in the "Amount" column. 0 Contributions of$100 or More Received Disclose contributions of$100 or more received since the closing date of the last campaign statement filed through the date of the independent expenditure. If no previous campaign statement has been filed, disclose contributions of$100 or more received since 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 `w00 loan, enter the interest rate. Once you have disclosed a contribution on the Form 496, it is not necessary to report that contribution on any additional Form 496 filings; however, it must be reported on the committee's next regular campaign statement (Form 460 or Form 450). Amending the Form 496 To amend a previously filed Form 496, file another Form 496 with the corrected or missing information, assign a new unique identifying number as the Report Number, check the "Amendment" box, and enter the identifying number of the report being amended. Describe the reason for the amendment in the space provided at the bottom of the form. There is no specified deadline for filing amendments; however, amendments should be filed as soon as practicable. Amendments are filed in the same location as the original. Fair Political Practices Commission Chapter 10. 14 Campaign Manual 2 advice @fppc.ca.gov April 2016 Verification of Independent Expenditures (Form 462) Ex 10.8-A committee The Form 462 must be filed if the committee makes an independent primarily formed to oppose a candidate made expenditure of$1,000 or more in a calendar year to support independent expenditures or oppose a single candidate or a single ballot measure. The of$20,000 to oppose the purpose of the Form 462 is for officers of the committee making the eandio electionte in the primary n. A Form 462 is independent expenditure to verify that the committee's expenditures required for the primary are indeed independent and have not been coordinated with the election. If the committee makes independent affected candidate or ballot measure committee (or the opponent). expenditures of$1,000 The form also verifies that the committee has not received any or more to oppose the candidate in the general unreported contributions or reimbursements to make the independent election, another Form 462 expenditures. \must be filed. When and Where to File the Form 462 Ex 10.9-A committee The Form 462 must be filed within 10 days from the date of the primarily formed to committee's first independent expenditure of$1,000 or more to support a candidate on support or oppose a candidate or measure in a calendar year. An a November e made its first independent independent expenditure is made when the communication is expenditure of$1,000 or disseminated to the public. A candidate or measure is listed only once more in September and filed the Form 462 listing for each election. Primary, general, and runoff elections are considered the candidate. In October, "' separate elections. the committee made several more independent expenditures to support the The Form 462 must be filed via e-mail with the FPPC (form462@ candidate. No additional fppc.ca.gov). The originally signed form must be maintained with the Form 462s are required for that candidate for the committee's campaign records for four years. `November election. Fair Political Practices Commission Chapter 10. 15 Campaign Manual 2 advice @fppc.ca.gov April 2016 Form 462 CALIFORNIA 462 Verification of Independent Expenditures FORM This verification form identifies an individual responsible for ensuring that the campaign committee's independent ❑Amendment (Explain) expenditures were not coordinated with the listed candidate or measure committee(or the opponent)and that the committee will report all contributions and reimbursements as required by law.An independent expenditure is not O bject to state or local contribution limits. f� "7 NAME OF RECIPIENT COMMITTEE,ENTITY OR INDIVIDUAL COMMITTEE ID# Friends Supporting Alvarez for Mayor 20XX 12399XX BUSINESS STREET ADDRESS CITY 10 Main Street Oakmont STATE ZIP CODE E-MAIL TELEPHONE NUMBER CA 95443 klucci@hotmail.com 707 ) 111-2222 FreE : 1. sf is y r „ F5 rs irk r t; a1 This committee has reported independent expenditure(s)to support or oppose the candidate(s)or measure(s)listed on a ballot for the election date identified below.(Note:The reporting of an independent expenditure may occur after this form is filed if an independent expenditure is made before the 90 day-24 hour reporting period of Government Code Sections 84204 and 85500.) NAME OF CANDIDATE(FirsVLast)/BALLOT MEASURE SUPPORT OPPOSE OFFICE SOUGHT OR HELD/BALLOT NO./LETTER JURISDICTION AND DISTRICT,IF ANY ELECTION DATE Manuel Alvarez ✓ Mayor Oakmont 06/04/20XX NAME OF CANDIDATE(F reSLast)/BALLOT MEASURE SUPPORT OPPOSE OFFICE SOUGHT OR HELD/BALLOT NO/LETTER JURISDICTION AND DISTRICT,IF AM' ELECTION DATE u NAME OF CANDIDATE(FIrsULasq/BALLOT MEASURE SUPPORT OPPOSE OFFICE SOUGHT OR HELD/BALLOT NO.&ETTER JURISDICTION AND DISTRICT,IF ANY ELECTION DATE II NAME OF CANDIDATE(Firsi/Last)/BALLOT MEASURE SUPPORT OPPOSE OFFICE SOUGHT OR HELD/BALLOT NO/LETTER JURISDICTION AND DISTRICT IF ANY ELECTION DATE 3 47-7r I have not received any unreported contributions or reimbursements to make these independent expenditures. I have not coordinated any expenditure made during this reporting period with the candidate or the opponent of the candidate who is the subject of the expenditure,with the proponent or the opponent of the state measure that is the subject of the expenditure,or with the agents of the candidate or the opponent of the candidate or the state measure proponent or opponent. I certify under penalty of perjury NOW under the laws of the State of California that the following is true and correct. [Signature Required] Karen Lucci Signed on [Date Required] Signature Printed Name very.ren, FPPC Form 462(Dec/2012) FPPC Advice:advice @fppc.ca.gov(866/275-3772) www.fppc.ca.gov Completing the Form 462 0 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 address listed on the committee's Statement of Organization (Form 410). Provide the committee's assigned committee ID number. 0 Candidates or Measures List the name of the candidate(s) or ballot measure(s) and mark the applicable support or oppose box. For candidates, list the office sought or held. The candidate's or measure's jurisdiction (and district if applicable) and the date of the election must also be listed. Fair Political Practices Commission Chapter 10. 16 Campaign Manual 2 advice @fppc.ca.gov April 2016 0 Verification The form must be reviewed and signed by the committee's principal sow officer. A principal officer is an individual primarily responsible for approving the political activity of the committee. (See Chapter 1.) If the committee has more than one principal officer, only one individual must sign the Form 462. The individual must be listed on the committee's Statement of Organization (Form 410). The same individual is not required to sign each Form 462. In the case of a controlled committee, the candidate or officeholder must sign the form. Amending the Form 462 To amend a previously filed Form 462, file another Form 462 with the corrected or missing information, check the "Amendment" box, and describe the reason for the amendment in the space provided. Amendments to the Form 462 must be filed within 10 days of the change. Like the original, the amendment must be signed and dated and filed via e-mail with the FPPC (form462 @fppc.ca.gov). Fair Political Practices Commission Chapter 10. 17 Campaign Manual 2 advice @fppc.ca.gov April 2016 Answering Your Independent Expenditure Questions A. How frequently must the Form 462 be filed? The Form 462 is required to identify the candidate or measure supported or opposed only once for each election. Once a candidate or measure is listed on the Form 462, no further filings are required for that candidate or measure for that 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 the runoff election, two Form 462's must be filed as they are 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. C. Is a candidate's controlled 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 promote one's own election. 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 Commission Chapter 10 18 Campaign Manual 2 advice @fppc.ca.gov April 2016 -1-- Nolo. The odd-year report is designed to timely show if a committee is making large contributions to a number of state legislators or elected state officers during an off-election year when important issues such as the state budget or controversial legislation is being considered. Ex 10.13- Between July The odd-year report must be filed, if during any odd-numbered year, 1 and September 30 the committee makes contributions totaling $10,000 or more to ya, odd-numbered yeear, a local candidate's elected state officers, their controlled committees, or committees election committee primarily formed to support or oppose any elected state officer during contributes$6,000 to the Governor's ballot measure the first and third quarters of the year. committee and $6,000 to the Secretary of State's The special odd-year report is completed in the same manner as a elcation committee. The local committee must file regular preelection or semi-annual statement (see Chapter 8) and a special odd-year report includes all of the committee's activity during the reporting period, not covering the period July 1 through September 30, by just contributions to elected state officers. October 31. When and Where to File the Special Odd-Year Report The special odd-year report is filed where the committee files its regular campaign statements and is filed on the committee's regular Nwr campaign disclosure statement (Form 460 or Form 450). Period Covered Filing Deadline January 1 through March 31 April 30 July 1 through September 30 October 31 ' N Ex 10.14- In support of Paid Spokesperson Report (Form 511) a local ballot measpub committeee e hires a publi c relations firm to produce a Promoting "truth in advertising," the Act requires that when a teacher, television advertisement. A firefighter, doctor, or other person is in a ballot measure advertisement or local more celebrity y appear in is paid $5the,000 ad. giving their expert views for or against the measure, the advertisement The committee must include must disclose if the person has been paid. The Form 511 must be the ad disclaimer described filed if a committee pays an individual for his or her appearance in a in Ch 7 and must file the Form 511. ballot measure advertisement in the following situations: Fair Political Practices Commission Chapter 10. 19 Campaign Manual 2 advice @fppc.ca.gov April 2016 Payments of$5,000 or More: The committee makes expenditures totaling $5,000 or more to an individual for his or her appearance in Ex 10.15-A committee pays an advertisement to support or oppose the qualification, passage, or in a television for a i ocad advertisement isemer ,, in a television advertisement defeat of a state or local ballot measure. supporting a local ballot measure. The ad will clearly identify the individual as a Payments of Any Amount: The committee makes expenditures doctor. The committee is of any amount to an individual for his or her appearance in an not required to include an advertisement to support or oppose the qualification, passage, or ad disclaimer, but it must file the Form 511. defeat of a state or local ballot measure and the advertisement states or suggests that the individual is a member of an occupation that requires licensure or certification or other specialized documented training as a prerequisite to engage in that occupation (nurse, doctor, Chapter 7 contains • firefighter, scientist, engineer, lawyer, etc.). advertisement rtisement disclaimers, for disclaimers, including the specific Committees that pay a spokesperson to appear in a ballot measure disclaimers that may be required if a committee advertisement may be required to include specific disclaimers on the pays a spokesperson to advertisements. (See Chapter 7.) appear in a ballot measure advertisement. When and Where to File the Form 511 The Form 511 must be filed within 10 days of making an expenditure identified above. An expenditure is made on the date the payment is made or the date the services are received, whichever is earlier. The Form 511 is filed in the same location the committee files its regular campaign statements (Form 460 or Form 450). Instructions for completing the Form 511 are provided on the FPPC's website. Communications Identifying State Candidates (Form E-530) The Act requires reporting of electioneering communications for state candidates, such as billboards on Interstate 5 saying "Thank you Senator Kim for your support of Central Valley Agriculture" placed right before the election. The Form E-530 must be filed if a committee 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 clearly identifies a candidate for elective state office, but does not expressly advocate the election or defeat of the candidate. Fair Political Practices Commission Chapter 10.20 Campaign Manual 2 advice @fppc.ca.gov April 2016 The report must disclose the amount and date of the payment(s), and the name of and office sought by the candidate(s) identified in ` 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 individual's occupation and employer must also be included. The report must be verified by a written "electronic filing declaration" signed, dated, and verified on the same date the report is transmitted to the Secretary of State. This declaration must be retained in the committee's records for five years following the date that the campaign report to which it relates is filed. The statement must include the following language: "I have used all reasonable 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 correct." When and Where to File the Form E-530 The Form E-530 must be filed electronically with the Secretary of State within 48 hours 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 State's website (www. sos.ca.gov). If the committee has not previously filed electronically with the Secretary of State, the committee will need to request a filer ID and password. The request form (Electronic Filing Password Request) is located on the Secretary of State's website under Campaign Finance. Igor- Fair Political Practices Commission Chapter 10.21 Campaign Manual 2 advice @fppc.ca.gov April 2016 The following Government Code sections and Title 2 regulations provide authority for the information in this chapter: Government Code Sections 81004.5 Reports and Statements; Amendments. 82025 Expenditure. 82036 Late Contribution. 82036.5 Late Independent Expenditure. 82044 Payment. 84200.6 Special Campaign Statements and Reports. 84202.7 Time for Filing by Committees of Odd-Numbered Year Reports. 84203 Late Contribution; Reports. 84203.3 Late In-Kind Contributions. 84204 Late Independent Expenditures; Reports. 84213 Verification. 84511 Ballot Measure Ads; Paid Spokesperson Disclosure. 85310 Communications Identifying State Candidates. irsoo 85501 Prohibition on Independent Expenditures by Candidate Controlled Committees. Title 2 Regulations 18116 Reports and Statements. 18421.1 Disclosure of the Making and Receipt of Contributions. 18425 24-Hour Contribution Reports. 18450.11 Spokesperson Disclosure. 18465.1 Verification of Online Filers. 18531.10 Communications Identifying State Candidates. 18539.2 Reporting Payments Pursuant to Government Code Section 85310. Fair Political Practices Commission Chapter 10.22 Campaign Manual 2 advice @fppc.ca.gov April 2016 FILING OBLIGATIONS AFTER THE .-ELECTION AND TERMINATING THE COMMITTEE After the election, a candidate's future filing obligations are determined by whether he or she was elected to office or not. Generally, a committee primarily formed to support or oppose a candidate will terminate after the election. The Political Reform Act (Act) does not require any local candidate or primarily formed committee to terminate; however, campaign statements must continue to be filed as long as 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. , The requirements discussed below apply to candidates/officeholders immediately following the election and for subsequent non-election years. An officeholder retains his or her status as a "candidate" under the Act and must continue to file campaign reports —either the full Form 460 or the short Form 470 — until they have left elective office and terminated their committee. See "Candidates Using Campaign Funds for a Future Election" below to determine the requirements for a candidate/officeholder running for reelection or running for election to a different office. Officeholders Who Filed Form 470 During Campaign After the election, a candidate who filed the Form 470 (Officeholder and Candidate Campaign Statement— Short Form) in connection with the election has no additional filing obligations that calendar year provided $2,000 or more is not raised or spent during that calendar year. So long as a candidate/officeholder does not have an open committee, a Form 470 must be filed by July 31 of each subsequent non-election year. Fair Political Practices Commission Chapter 11. 1 Campaign Manual 2 advice @fppc.ca.gov April 2016 Officeholders Who Filed Form 460 During Campaign After the election, a successful candidate who filed the Form 460 (Recipient Committee Campaign Statement) in connection with the election must continue to file the Form 460 semi-annually as long as the committee remains open. In addition, other special reports may be required. The candidate/officeholder has the option of maintaining his or her committee and campaign bank account or terminating the campaign committee and closing the bank account. An officeholder who maintains a committee may: • Continue to receive contributions; • Use campaign funds to offset officeholder expenses; or • Use funds for a future election. (See "Candidates Using Campaign Funds for a Future Election" below.) Once an officeholder terminates the committee, he or she may be required to file the Form 470 the following year. However, if a candidate/officeholder has an open committee at any time during a calendar year, the Form 470 (short form) may not be filed instead of the Form 460. Exception: Judges and Unpaid Officeholders Unpaid officeholders (defined in the Act as those who receive less than $200 per month for serving in office) and judges are not required to file Form 460 or Form 470 for any semi-annual period in which they 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 officeholder has a controlled committee so long as the committee has not received any contributions or made any expenditures (excluding bank fees and interest). To determine whether $200 has been received, only the elected officeholder's fixed compensation (i.e., salary) is counted. Payments for health benefits, reimbursement for expenses (including travel expenses), or per diem received from the officeholder's agency need not be counted toward the $200. Fair Political Practices Commission Chapter 11.2 Campaign Manual 2 advice @fppc.ca.gov April 2016 1111.111111■111.11 Judges and unpaid officeholders who are listed on a ballot must file the Form 470. Behested Payment Reports (Form 803) An elected officer who fundraises for worthy causes in his or her community (such as for a local school, to build a new community center or restore a historic building) may have to file a "behested payments" report. Behested payments are donations made to a charity or a government agency at the request of an elected officer for a legislative, governmental or charitable purpose. These payments are not made for personal purposes (i.e., gifts) or campaign purposes (i.e., contributions). A common example is when an elected officer co-sponsors a 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: Although behested • • File the Form 803 when a person donates $5,000 or more in payments are a calendar year to charitable organizations or events at the not considered gifts or request of an elected officer. contributions to the elected official, meals, lodging, and travel payments received by • Once a source has made a behested payment(s) of$5,000 or an official in connection with more during the calendar year, subsequent payments of any a co-sponsored event may be reportable gifts. amount from that source during the calendar year must be reported. • File the Form 803 with the elected officer's agency within 30 days following the date of the payment. Ex 11.1 At the mayor's request, a catering company • The elected officer's agency must forward the Form 803 to donated refreshments the filing officer who receives the elected officer's campaign valued at$5,000 for a city sponsored job fair. The statements within 30 days of receiving the form. The Form 803 mayor must file a Form 803 is a public record. See the Form 803 example below. with the city clerk to report the behested payment. Nolo, Fair Political Practices Commission Chapter 11. 3 Campaign Manual 2 advice @fppc.ca.gov April 2016 '. _.1.111, Form 803 Exceptions: • A Form 803 is not required of a non-elected officer. • 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 the solicitation does not "feature an elected officer," even if the solicitation includes an elected officer's name. A solicitation "features an elected officer" when it includes the officer's photograph or signature, or singles out the elected officer. An elected officer is also "featured" in a solicitation if the roster or letterhead listing the governing body contains a majority of elected officers. See Regulation 18215.3 for additional information. • A payment is not subject to behested payment reporting if the elected officer makes a request for a payment from a local, state, or federal government agency. Fair Political Practices Commission Chapter 11.4 Campaign Manual 2 advice @fppc.ca.gov April 2016 Behested Payment Report A Public Document Behested Payment Report 1. Elected Officer or CPUC Member(Last name,First name) Date Stamp a I ornia p 03 14 Alvarez, Manuel Form o Agency Name For Official Use Only City of Oakmont Agency Street Address 225 Presley Street, Oakmont, CA 95443 Designated Contact Person(Name and title,if different) ❑ Amendment(See Part 5) Madeline Richards Area Code/Phone Number E-mail (Optional) Date of Original Filing: 6/30/XX (month,day,year) 707-555-6868 mrichards @oakmontmail.com 2. Payor Information (For additional payors,include an attachment with the names and addresses.) Wildwood Insurance Company Name 1022 Main Street Oakmont CA 95443 Address City State Zip Code 3. Payee Information (For additional payees,include an attachment with the names and addresses.) Boys and Girls Club of California Name 555 10th Street Sacramento CA 95814 Address City State Zip Code 4. Payment Information (Complete all information.) Date of Payment: 6/24/XX Amount of Payment: (In-Kind FMV) $ 5,000 (month,day,year) (Round to whole dollars.) Payment Type: ® Monetary Donation or ❑ In-Kind Goods or Services(Provide description below) Brief Description of In-Kind Payment: Purpose:(Check one and provide description below) ❑Legislative ❑Governmental ®Charitable Describe the legislative, governmental, charitable purpose,or event: Charitable fundraiser to support the Boys and Girls Club. 5. Amendment Description or Comments 6. Verification I certify, under penalty of perjury under the laws of the State of California,that to the best of my knowledge,the information contained herein is true and complete. Executed on 6/30/XX By [Signature Required] DATE SIGNATURE OF ELECTED OFFICER OR CPUC MEMBER Fair Political Practices Commission Chapter 11.5 Campaign Manual 2 advice @fppc.ca.gov April 2016 110111111111111111111. Legal Defense Committees The Act permits a local candidate or elected officer to establish a legal ` rd defense fund, if the candidate or officer is subject to civil, criminal or administrative proceedings arising directly out of the conduct of an election campaign, the electoral process, or the performance of the officer's governmental duties. Contributions raised for legal 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 and other related legal costs, as defined in the Act. (See Regulation 18530.45 for additional information.) Recall Elections Under state law, an officeholder who is the subject of a recall may use an existing committee (set up for the office he or she currently holds) to receive contributions and make expenditures to oppose the qualification of the recall measure, and if the recall petition qualifies, the recall election. An alternative option is to form a separate recall committee. A recall committee may be established once the officeholder receives a notice of intent to recall under Elections Code Section 11201. The committee must set up a separate bank account at a financial institution in California, file a Statement of Organization (Form 410), and, in addition to the officeholder's name, must include the word "recall" in the name of the committee. See Campaign Disclosure Manual 3 as a recall committee is considered a ballot measure committee. (FPPC Regulation 18531.5 contains specific guidance on recall elections.) B. . ems, e ' Elates Form 470 Filers Following the election, a defeated candidate who filed the Form 470 (Officeholder and Candidate Campaign Statement— Short Form) has no further reporting obligations so long as less than $2,000 was raised or spent during the calendar year. Fair Political Practices Commission Chapter 11.6 Campaign Manual 2 advice @fppc.ca.gov April 2016 Form 460 Filers Following the election, a defeated candidate must continue to file the '`"" 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 leftover funds; however, if there are leftover funds and the candidate wants to use the funds for a future election, the funds must be redesignated or transferred as discussed below. Election Ex 11.2-John Davis lost the city council election A local candidate or officeholder may use leftover campaign funds in November. John has for a future election so long as the funds are not considered "surplus campaign remaining in his 9 p campaign bank account funds" and the requirements below are met. Campaign funds and is considering seeking become surplus on the 90th day after the closing date for the another city c d position in two years. In n o order to postelection reporting period or upon the 90th day after the date use the remaining$3,500 of leaving office, whichever occurs last. Surplus campaign funds for the future election, John must file a new Form subject to restrictions, as described in Chapter 5, and may not be 501 (Candidate Intention used for a future election. Statement) and redesignate the bank account to a future election by amending his Running for the Same Office Form 410 (Statement of Organization)to indicate the To use money remaining in the campaign bank account for a future new office sought and year of election. This must be election to the same office before the funds become surplus, a local done within 90 days after candidate may redesignate his or her committee and campaign bank the end of the postelection account by: reporting period for the November election. • Filing a new Form 501 (Candidate Intention Statement) for the specific future election; and, • Filing an amended Form 410 (Statement of Organization) to reflect the redesignation for the future election. Candidates should also check with the city or Running for a Different Office county to determine if there are local restrictions for To use money remaining in the campaign bank account for a future redesignating or transferring campaign funds. election to a different office before the funds become surplus, a local candidate must: Fair Political Practices Commission Chapter 11.7 Campaign Manual 2 advice @fppc.ca.gov April 2016 _,1 • File a new Form 501 (Candidate Intention Statement) for the Ex 11.3-Jayna Chacon is a specific future election; city council member who plans to run for county supervisor in the next • File a new Form 410 (Statement of Organization); and, election. She would like to use the remaining funds in • Open a new bank account. So long as the funds are not her city council committee surplus and there are no local restrictions, the campaign funds bank oncount for the county sur p election. Jayna must file from the other account may be transferred to the new bank a new Form 501 before account. she solicits or receives contributions for the county supervisor election. She must also file a new Form �_ ' ° • 410 and open a new bank account. The city council Generally, a committee established primarily to support or oppose committee campaign funds must be transferred to the a particular candidate(s) will terminate after the election, but the county supervisor campaign committee may remain open to: bank account within 90 days after the date Jayna leaves the city council position. • Raise funds to pay debts. L • Support or oppose other candidates or measures. The committee will need to amend its Statement of Organization (Form 410) to reflect the change. Ex 11.4-After the election, the committee primarily formed to support candidate A primarily formed committee must continue to file semi-annual Jones decides to support campaign statements (i.e., Form 460 or Form 450) and pay the annual candidate Lopez in the next election. In order to committee fee as long as the committee remains open. do so,the committee must file an amended Form 410 E (Statement of Organization) and will continue to file campaign statements. There is no deadline for terminating a committee controlled by a local candidate or officeholder unless the controlling candidate/officeholder becomes a state officeholder. In that case, the candidate should 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. A committee that remains open must continue to file semi-annual campaign statements (i.e., Form 460 or Form 450) and pay the annual simid Fair Political Practices Commission Chapter 11. 8 Campaign Manual 2 advice @fppc.ca.gov April 2016 fee, as described in Chapter 1, until it terminates. There are specific requirements that must be met in order for a committee to terminate. N.. A committee may terminate only if the committee: • Has ceased receiving contributions or making expenditures and does not anticipate receiving contributions or making expenditures in the future; • Has no remaining campaign funds; • Has filed all required campaign statements, disclosing all reportable transactions, including the disposition of leftover funds; and • Has eliminated all debts, or has no intention or ability to discharge debts. Ex11.5-At the end of A committee must file a Form 410 and a final Form 460 or Form 450. November, after winning her On the Form 410, the "Termination" box must be checked. List the election,Arlene decides to terminate her committee. committee's identification number and the date of termination; the date To do so,she must file a of termination generally is the date all funds have been expended. Form 410 termination and a Form 460 termination `ow Complete Section 1 and the treasurer or assistant treasurer must sign showing that the committee the verification. For candidate controlled committees, the controlling has no remaining cash. On officeholder(s)/candidate(s) also must sign the verification. t Form Cover Page, Type of fm Staatete ment section, she will mark both the Form 450 or 460 also must be filed showing that all funds have been termination and semi-annual boxes and enter December expended and the committee has no cash on hand. Check the 31 as the closing date of the "Termination" box on the cover page. statement. Unless there is additional activity,Arlene is not required to file a semi- File the original and a copy of the Form 410 with the Secretary of State annual statement on January and a copy with the committee's local filing officer who receives the 31, and may file Form 470 by July 31 of the next year. committee's original campaign statements. File the Form 450 or 460 in the committee's regular filing locations. Fair Political Practices Commission Chapter 11.9 Campaign Manual 2 advice @fppc.ca.gov April 2016 fi F."I eceiv irl a °efuncf f�ter ir=e ee` na � Ex 11.6-A candidate was defeated in a November Generally, once a committee has terminated, no transactions may be election d closed campaign an commit clostee her in made by the committee unless a request to reopen the committee December. In February is submitted to and approved by the FPPC's Executive Director. of the following year, she However, a candidate controlled committee that has terminated from a county elections from the county elections may accept a refund from a governmental entity (such as an office for an overpayment overpayment of filing fees) without reopening. A committee may also of her filing fees.disclose The candidate must accept a refund from a vendor or other person without reopening if receipt of the refund on the committee did not know of its entitlement to the refund prior to Schedule I of the Form 460. termination and the refund or refunds total no more than $10,000. The reund must be used for a permissible expenditure as described in Chapter 5, To report this type of refund, the terminated committee must file a such as to pay outstanding debts or to make a donation Form 460 for the period in which the refund was received and report to a charity, and disclosed on the refund as a miscellaneous increase to cash on Schedule I of the Schedule E. If the candidate Form 460 and as an expenditure on Schedule E when the funds are used personal funds to pay the filing fee,she may spent. (See Chapter 5 for the permissible uses of campaign funds.) keep the refund without For the rules related to transferring the refund to another committee, disclosing it on the Form 460. see Regulation 18404.1. Noiri Naid Fair Political Practices Commission Chapter 11 10 Campaign Manual 2 advice @fppc.ca.gov April 2016 Answering Your Questions Nome A. Must I file the Form 470 even if I waive my $200 per month salary as a school board member? Yes. The exception for unpaid officeholders (less than $200 per month) does not apply when an officeholder waives his or her salary. B. May I terminate my committee even if I have outstanding debt? Yes. When you file your termination statement showing 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 an invoice for legal services that needs to be paid. Is it permissible to *..►- pay the invoice with my personal funds without reopening the committee? No. A request to reopen your committee must be submitted to the FPPC's Executive Director. If the request is approved, you must reopen the committee and deposit personal funds into the committee's bank account before paying the invoice. The only transactions that may occur without reopening a committee are receipt of a refund from a governmental entity or receipt of a refund from a vendor or other person if the committee did not know of its entitlement prior to termination and the refund is no more than $10,000. (See Regulation 18404.1.) Fair Political Practices Commission Chapter 11. 11 Campaign Manual 2 advice @fppc.ca.gov April 2016 D. After terminating my committee, I received a refund from the city clerk for an overpayment of my filing fees. How do I report this? If you used campaign funds to pay for the filing fees, you must file a Form 460 to report the refund as a miscellaneous increase 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. If you used personal funds to pay for the filing fees, you may keep the refund and you are not required to report it on a campaign statement. E. A nonprofit group paid for a survey they conducted and 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? One of the requirements that must be met in order for a 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. Under very limited circumstances (e.g., to receive a refund), a committee may request approval from the FPPC's Executive Director to reopen a terminated committee, but this issue does not appear to meet these circumstances. So, 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 Commission Chapter 11. 12 Campaign Manual 2 advice @fppc.ca.gov April 2016 ,■ The following Government Code sections and Title 2 regulations provide authority for the information in this chapter: Government Code Sections 82015 Contribution. 84103 Statement of Organization; Amendment. 84200 Semi-Annual Statements. 84206 Candidates Who Receive or Spend Less than $2,000. 84214 Termination. 85200 Statement of Intention to be a Candidate. 85201 Campaign Bank Account. 85304.5 Legal Defense Fund; Local Candidates and Elected Officeholders. 89519 Surplus Funds. Title 2 Regulations 18215 Contribution. 18215.3 Behested Payments Reporting. 18402 Committee Names. 18404 Termination of Candidate's and Committees' Filing Requirements. 18404.1 Termination and Reopening of Committees. 18406 Short Form for Candidates or Officeholders Who Receive and Spend Less than $2,000 in a Calendar Year. 18426 Semi-Annual Statement Early Filing. 18530.45 Legal Defense Funds — Local Candidates and Officers. 18531.5 Recall Elections. Fair Political Practices Commission Chapter 11. 13 Campaign Manual 2 advice @fppc.ca.gov April 2016 APPENDIX - ABOUT THE POLITICAL REFORM ACT/ HOW TO GET HELP The Political Reform Act of 1974 The Political Reform Act (the "Act") was a voter-approved initiative on the 1974 primary election ballot. One of the major provisions of 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 the same political party. FPPC staff is comprised of five divisions: Executive, Administration and Technology, Enforcement, Legal, and External Affairs and Education. Governing Statutes The Political Reform Act is contained in Government Code Sections 81000 — 91014. Regulations Regulations interpreting the Political Reform Act are located at Title 2, Division 6 of the California Code of Regulations, beginning at Section 18109. 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 Commission Appendix-1 Campaign Manual 2 advice @fppc.ca.gov April 2016 In addition, FPPC staff issues written advice letters as to the applicability of the Political Reform Act and regulations to a particular *Now,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 428 J Street, Suite 620 Sacramento, CA 95814 (916) 322-5660 (866) 275-3772 —Toll-free www.fppc.ca.gov Twitter: @CA_FPPC Facebook: CA FPPC FPPC Website Visit the FPPC website (www.fppc.ca.gov) to get copies of specific advice letters, sign up for RSS feeds, or to be put on mailing lists. The Commission's website also 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 • Forms required by the Act (also available at the FPPC's offices, the Secretary of State's offices, and many local clerks' offices) • Manuals, fact sheets, and useful summaries of the law • Schedules of upcoming seminars, webinars, and educational workshops Fair Political Practices Commission Appendix-2 Campaign Manual 2 advice @fppc.ca.gov April 2016 Additional Campaign Manuals Additional copies of this manual, and manuals for other types of campaign committees are available from the FPPC, the Secretary of State, and many city clerks and county elections offices. Manuals are available for: • State candidates and officeholders, and committees primarily 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: ""+ Barclay's Law Publishing P.O. Box 3066 South San Francisco, CA 94083 (800) 888-3600 Opinions and advice letters are available from these subscription services: Westlaw (800) 328-9352 Database: "CA-ETH" (Advice letters from 1986 to present) Lexis-Nexis (800) 227-9597 Database: "CA Fair Political Practices Commission" (Advice letters from 1990 to present) Fair Political Practices Commission Appendix-3 Campaign Manual 2 advice @fppc.ca.gov April 2016 Other Resources The Secretary of State, city clerks, and county clerks or registrars of voters are the filing officers for campaign disclosure statements. Committee statements will be filed with the Secretary of State or the local elections office, depending on whether the filer is a state or local candidate or committee. Secretary of State The Secretary of State is also responsible for issuing campaign committee identification numbers. (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 Commission Appendix-4 Campaign Manual 2 advice @fppc.ca.gov April 2016 _■ Internal Revenue Service The Internal Revenue Service provides assistance regarding federal tax laws and obtaining a taxpayer identification number. (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 A city or county officeholder, candidate, or committee may be NosiO subject to additional reporting or other requirements under a local campaign ordinance. Common examples include the requirement to file campaign statements electronically, local contribution limits, lower itemization thresholds, or the requirement to file an additional 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 sections 81000 — 91014 and California Code of Regulations sections 18110 — 18997). All information required 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 Commission Appendix-5 Campaign Manual 2 advice @fppc.ca.gov April 2016 If you have any questions regarding this Privacy Notice, please contact the FPPC at: General Counsel 428 J Street, Suite 620 Sacramento, CA 95814 (916) 322-5660 Campaign statements are filed with the Secretary of State and city and county filing officers, depending upon the type of committee. (See 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 Political Practices Commission; • A criminal misdemeanor proceeding; • A civil action; and • Levying of late penalties by filing officers. Penalties of up to $5,000 per violation of the Political Reform Act may be imposed. Niftw Fair Political Practices Commission Appendix-6 Campaign Manual 2 advice @fppc.ca.gov April 2016