March 5, 2024, Presidential Primary Election, Campaign Guide: Often Overlooked Campaign Disclosure Requirements

BE INFORMED! The Franchise Tax Board is authorized under Government Code § 90001 to audit campaign disclosure statements. The audit can include tests of the accounting records and other such auditing procedures. The purpose of campaign disclosure is to provide the public with the identity of contributors and the amounts they give, as well as the amount officeholders, candidates and committees spend. The laws passed to enforce that purpose can be complicated and challenging to follow. Therefore, a list of often overlooked requirements as identified in audit reports are provided below.

General Guidelines

• Use campaign funds only for political, legislative, or governmental purposes. No personal use! (Government Code § 8314, Penal Code § 426)
• Personal funds are considered contributions and are subject to the same disclosure requirements as contributions received from other individuals or committees.
• Exception: Filing fees and candidate statement fees do not need to be reported if the candidate is using personal funds and will not be reimbursed through the committee.
• Loans to a candidate are considered contributions unless the loan is from a financial institution.
• The source for each loan must be disclosed.
• Even unopposed candidates are subject to the campaign disclosure provisions of the Political Reform Act. (Government Code § 82007)
• Open committees are required to file the necessary campaign finance disclosure statements until terminated -- even if there is no activity.

Tracking Contributions & Expenditures

• Prior to soliciting or receiving any contributions (including a loan) or making any expenditures, all candidates and elected officeholders must file Form 501 (Candidate Intention Statement) (except candidates for County Central Committee offices spending less than $2,000).
• Maintain details on contributions and expenditures of $25 or more -- even if the candidate does not yet have a committee. Refer to recordkeeping guidelines in the FPPC Campaign Disclosure Manual 2, Chapter 3.
• Make copies of all contributor checks.
• Expenditures of $100 or more must be made by written instrument containing the names of both the payee and payor. (Government Code § 84300)
• Never accept or spend $100 or more in cash. (Government Code §§ 84300(a), (b))
• Contributions of $100 or more may not be made in the form of a money order or cashier’s check. Contributions may be made with a credit card.
• For contributions of $100 or more, including loans and in-kind contributions, the contributor's name, street address, occupation, and employer must be disclosed. (Government Code §§ 84211(f), (g))
• A Statement of Organization (Form 410) must be filed within 10 days of receiving contributions or making expenditures totaling $2,000 or more during a calendar year.
• In addition, candidates and officeholders who receive contributions or make expenditures of $2,000 or more must establish a campaign checking account in California and report it on Form 410.
• All expenditures of $100 or more must be itemized on the campaign statements, and then summarized on the Campaign Disclosure Statement Summary Page of the Form 460. Payee street addresses must be disclosed on the campaign statements for expenditures made. (Government Code § 84211(k))
• When information contained in a committee’s Statement of Organization (Form 410) changes, file an amendment within 10 days of the change with the Secretary of State and (if applicable) the local filing officer.
• Any person who makes independent expenditures in support of or in opposition to a single candidate for elective office or a single ballot measure that add up to one thousand dollars ($1,000.00) or more during the 90 days immediately preceding the election in which the candidate or measure will be voted on shall file an Independent Expenditure Report (Form 496) within twenty-four (24) hours each time an independent expenditure is made. A Verification of Independent Expenditures Report (Form 462) affirming the independent nature of the expenditure must also be filed.

Local Campaign Disclosure Requirements (Sonoma County Ordinance No. 5798)

• All committees making or receiving contribution(s) to county candidates that total in the aggregate to $1,000 or more during the last 90 days before the election must disclose receipt within 24 hours, even if the contribution is from a candidate's personal funds.
• If $500 or more (including contributions aggregated) are made to or received by a county candidate during the last 16 days before the election, they must disclose receipt within 24 hours, even if the contribution is from the candidate's personal funds.
• Committes supporting or opposing any county candidate are required to file 24-hour independent expenditure reports during the local election cycle.