Proposition 89			00.00 10/05
	Full Extract
	Submitted as: "The California Clean Money and Fair Elections Act of 2006"
	Type:  Amendments to the Government Code, Elections Code, and Revenue and Taxation Code
	Subject:  Special tax on corporations to fund state elections
	Submitter:  Deborah Burger  (Ms. Burger is President of the California Nurses Association.)
	Supporting Organization:
		Name:	Californians for Clean Elections (California Nurses Association) 2000 Franklin St Oakland, CA, 94612
		Email: press at calnurses.org
		Web Site: www.cleanmoneyelections.org/
		Phone: 510-273-2200
	Opposing Organization:
		Name:	Californians to Stop 89 1415 L Street, Suite 1250 Sacramento, CA 95814
		Email: info at noprop89.org
		Web Site: www.noprop89.org
		Phone: 916.708.7824
	Section 1
	Adds Chapter 12 to Title 9 of the Government Code
	(91025 to 91069) Various definitions are provided.  These reveal the overall intent of the Initiative and are key to understanding it.  Important ones are the following:
	Campaign Period Types:
		"Exploratory period" begins 18 months before the primary and ends on the last day of the qualifying period. (91033)
		"Qualifying period"  (91065) is the span of time during which candidates are permitted to collect qualifying contributions.  Its length depends upon the candidate type: For party candidates it begins 270 days before the primary and ends 90 days before the primary. For performance-qualified candidates who are running as independents, it begins any time after January 1 and lasts 180 days but must in no event end later than 90 days before the general election.
		"Primary election campaign period" begins 120 days before the primary and ends on the day the primary election results are certified. (91059)
		"General election campaign period" begins the day after the primary election and ends on the day of the general election. (91035)
	Candidate Types:
		"Independent candidate" is one who does not represent a political party but who has qualified to be on the general election ballot.  (91037)
		"Nonparticipating candidate"  is one who has chosen not to apply for Clean Money campaign funding or has not met  the requirements for receiving Clean Money funding. (91043)
		"Office-qualified candidate" is one who is seeking nomination from an office-qualified party. (91046)
		"Participating candidate" is one who qualifies for and accepts Clean Money campaign funding. (91049)
		"Party candidate" is one who represents a political party that holds a primary election to choose its nominee for the general election. (91051)
		"Performance-qualified candidate" (91053) is one who has either: 1) won the primary nomination of an office-qualified party or 2) shown a broad base of support by gathering twice the number of qualifying contributions that are required for an office-qualified candidate.
		"Qualified candidate" is one who is seeking nomination from a party that is not an office-qualified party. (91061)
	"Excess expenditure amount" means the difference between the money spent or committed to be spent by a nonparticipating candidate and the standard Clean Money amount available to a participating candidate running for the same office. (91031)
	"Office-qualified party" (91045) is one: 1) whose nominee got at least 10 percent of the votes for governor at the last election or 2) whose candidate for the same office got at least 10% of the votes for that same office in the last election.
	"One party dominant legislative district" is one in which, measured on a percentage basis, the registration rate for one party exceeds its nearest competitor by 20 percentage points.  (91047)
	"Qualifying contribution" is a contribution of $5, that must come from a legal resident of the district in which the candidate is running for office, that is received during a particular qualifying period. (91063)
	"Qualifying period"  (91065) is the span of time during which candidates are permitted to collect qualifying contributions.  Its length depends upon the candidate type: For party candidates it begins 270 days before the primary and ends 90 days before the primary. For performance-qualified candidates who are running as independents, it begins any time after January 1 and lasts 180 days but must in no event end later than 90 days before the general election.
	"Seed money contribution" means a contribution of no more than $100 per person during the exploratory period, that must be made by a legal resident of California. (91067)
	91071 (a)  Office-qualified candidates qualify as participating candidates for the primary election campaign period if they do all of the following:
	91071 (a) (1) File a declaration with the Fair Political Practices Commission that the candidate agrees to be governed by the Clean Money Act, in particular that during the exploratory period and the qualifying period the candidate will not accept or spend private contributions from any source other than seed money contributions, Clean Money funds, and political party funds.
	91071 (a) (2) Meet the following requirements regarding qualifying contributions, before the close of the qualifying period:
		(A) Collect at least this number of qualifying contributions, depending upon the office:
		(A) (i) Member of the Assembly, 750.
		(A) (ii) Member of the State Senate, 1500
		(A) (iii) Member of the State Board of Equalization, 2000
		(A) (iv) A statewide office other than Governor, 7500
		(A) (v) Governor, 25000
		(B) No person shall provide more than one qualifying contribution for each office.
		(C) Give receipts, having a specified content, to contributors, and send copies to the Commission.
		(D) Accept no contributions without giving a matching and fully completed receipt; if so, these contributions will not be counted.
		(E) Deposit all contributions in the candidate's campaign account.
		(F) Send the Commission a payment from the candidate's campaign account for the total amount of  contribution funds received, to be deposited in the Clean Money Fund.  This payment must be equal to the sum of all the qualifying contributions the candidate has received.
		(G) Disclose to the Commission, at the end of the qualifying period, the total amounts, if any, spent to hire paid circulators to collect qualifying contributions.
	91071 (b) Party candidates qualify as participating candidates for the general election campaign period if both of these requirements are met:
	91071 (b) (1) The candidate qualified as a participating candidate in the primary election period and agrees to continue being governed by the Clean Money Act.
	91071 (b) (2) The candidate won the party's nomination, as a participating candidate from an office-qualified party during the primary election
	91073 A qualified candidate must collect at least half the number of signatures that are required for an office-qualified candidate for the same office.  The qualified candidate may collect double the amount of signatures required for an office-qualified candidate, and thereby become a performance-qualified candidate. The candidate must agree to be governed by the Clean Money Act.  For a candidate who does not run in a primary, the qualifying period begins any time after January 1 of the election year and lasts 180 days, except that it shall end no later than 90 days before the general election.  The candidate must notify the Commission within 24 hours of the day when the candidate begins to collecting qualifying contributions.
	91077 (a) A candidate who accepts any Clean Money benefits during the primary election is bound by the Clean Money Act through the general election whether the candidate continues to accept benefits or not.
	91077 (b) During his term, an elected state officer who accepted Clean Money benefits shall not accept private contributions from any source and shall not solicit or receive political contributions for any candidate or any political party committee or other political committee.  This commitment holds until the first day of the Qualifying Period for the next election for the office currently held.
	91079 (a) During the primary and general election campaign periods, a candidate using Clean Money benefits shall not accept private contributions from any source other than the candidate's political party as specified in 91123.
	91079 (b) During the qualifying, primary and general election campaign periods, a candidate using Clean Money benefits shall not solicit or receive political contributions for any other candidate or for any political party committee or other committee.
	91079 (c) A participating candidate who receives a qualifying contribution that is not from the person listed on the matching receipt shall be liable to pay the entire amount into the Clean Money fund, in addition to any penalties.
	91079 (d) During the primary and general election campaign periods, a participating candidate must pay for all of the candidate's campaign expenditures (other than petty cash expenditures) using the Commission's "Clean Money Debit Card" described in 91141.
	91079 (e) All candidates shall furnish complete campaign records to the Commission at regular filing times.  All candidates shall cooperate with any audit or examination by the Commission, the Franchise Tax Board, or any enforcement agency.
	91081 (a) During an election, each participating candidate shall conduct all campaign financial activities through a single campaign account.
	91081 (b) A participating candidate may maintain another campaign account if the other campaign account is for the purpose of paying a campaign debt that was incurred during a previous election in which the candidate was not a participating candidate.
	91081 (c) Contributions to the account of (b) shall not be considered "contributions" to the candidate's current campaign.  Any such contributions shall be raised only during the six-month period following the date of the previous election.
	91083 (a) Participating candidates shall use their Clean Money funds only for direct campaign purposes.
	91083 (b) A participating candidate shall not use Clean Money funds for any of the following:
	91083 (b) (1)  Costs of legal defense in any campaign law enforcement proceeding under this act.
	91083 (b) (2) Indirect campaign purposes, including, but not limited to, the following:
		(A)  The candidate's personal support or compensation to the candidate or the candidate's family.
		(B) The candidate's personal appearance.
		(C) Capital assets having a value in excess of five hundred dollars ($500) and useful life extending beyond the end of the current election period.  Exception:  a participating candidate may purchase computer-related assets provided that each such asset has a value not in excess of $1,000.
		(D) A contribution or loan to the campaign committee of another candidate or to a political party committee or other political committee.
		(E) An independent expenditure.
		(F) A gift in excess of twenty-five dollars ($25) per person.
		(G) Any payment or transfer for which compensating value is not received.
	91083 (b) (3) Compensation to any individual who receives a salary from the State of California, excepting Administrative and support personnel.
	91085 (a) For a candidate seeking to become eligible as a participating candidate, personal funds contributed as seed money to his or her campaign, or by adult members of the candidate's family to the candidate, shall be limited to $100 per contributor.
	91085 (b) Personal funds may not be used for qualifying contributions, except for a $5 contribution from the candidate and another $5 contribution from the candidate's spouse.
	91087 (a)  Other than qualifying contributions, contributions per Section 91115, and limited contributions from the candidate's political party, the only private contributions a candidate desiring Clean Money Funding shall accept are seed money contributions.  These must be contributed, before the end of the qualifying period, by individual residents of the district.
	91087 (b) Seed money contributions must not exceed $100 per donor, and the total that may be accepted is limited by the office:
	91087 (b) (1)  Member of the Assembly, $10,000
	91087 (b) (2)  Member of the State Senate, $20,000
	91087 (b) (3)  Member of the Board of Equalization, $30,000
	91087 (b) (4)  Statewide office other than Governor, $75,000
	91087 (b) (5)  Governor, $250,000
	91087 (c) Receipts must be given, containing specific information.
	91087 (d) Seed money shall be spent during the exploratory and qualifying periods, only.   Seed money not spent in those periods shall be deposited in the Clean Money Fund.
	91087 (e) Within 72 hours of the end of the qualifying period, candidates seeking to become eligible for Clean Money funding must apply by doing both of the following: (1) Fully disclose all seed money contributions and expenditures to the Commission. (2) Pay to the Clean Money Fund any seed money that exceeds the seed money limit.
	91091 Participating candidates shall agree to participate in at least one public debate for a primary and two public debates for a general election (presuming there is an opposing candidate.  The form of the debates shall be determined by the Fair Political Practices Commission.
	91095 (a) Candidates who qualify for Clean Money funding for primary and general elections shall:
	91095 (a) (1)  Receive Clean Money funding for each election, in the amount listed in 91099. This funding may be used to finance any and all campaign expenses during the particular campaign period as limited by 91081.
	91095 (a) (2)  Also receive, if an office-qualified candidate or a performance-qualified candidate, additional Clean Money funding to match any excess expenditure amount spent by a nonparticipating candidate.
	91095 (a) (3) also receive, if an office-qualified candidate or a performance-qualified candidate, additional Clean Money funding to match any excess independent expenditure made in opposition to their candidacies or in support of their opponents' candidacies.
	91095 (b) The total allotted due to the match of (a) (2) and (3) above shall be no more than five times the amount of Clean Money funding that would have been allocated per 91099 for a particular primary or general election.  For Governor, the limit is four times the amount.
	91097 (a) A qualified or office-qualified candidate shall receive the Clean Money funding for the primary election  on the date on which the Commission certifies the candidate as a participating candidate, which must occur within 5 days after the candidate has provided the proper documentation.
	91097 (b) A qualified or performance-qualified candidate shall receive the Clean Money funding for the general election within two days after certification of the primary results
	91097 (c) A participating candidate for the Legislature who is running in the primary of the dominant party in a one-party dominant district may choose to reallocate a portion of the Clean Money funding amount from the general election period to the primary period.  The candidate must make a written request and submit same along with the documents required by (a) to the Commission at the end the qualifying period.  If this choice is made, the candidate shall receive an additional amount equal to 25% of the amount specified for the general election, per 91099 (b), and the amount that would have been received at the beginning of the general election period shall be reduced by 25%.  If a competing participating candidate transfers funds in this way, any other participating candidates in the same election may do the same by notifying the commission in writing within five days of the close of the qualifying period.
	91099 (a) For candidates in a primary election, or for performance-qualified candidates in a special or special runoff election:
	91099 (a) (1) The amount of Clean Money funding for an office-qualified party candidate in a primary, special, or special runoff election is:
		(A) Member of the Assembly, $250 thousand
		(B) Member of the State Senate, $500 thousand
		(C) Member of the Board of Equalization, $250 thousand
		(D) Statewide office other than Governor, $2 million
		(E) Governor, $10 million
	91099 (a) (2) The amount of Clean Money funding for a performance-qualified candidate in a primary or special election is 20% of the amount an office-qualified party candidate could receive. The amount of Clean Money funding for a performance-qualified candidate in a special runoff election is 50%  of the amount an office-qualified candidate would receive.
	91099 (a) (3)The Clean Money funding amount for a participating candidate in a primary election where no other candidates are running in the same party primary for that seat is 10% percent of the amount that would be provided in a contested primary election.
	91099 (b) For candidates for elective state office in a general election:
	91099 (b) (1) The amount of Clean Money funding for an office-qualified candidate in a contested general election is:
		(A) Member of the Assembly, $400 thousand
		(B) Member of the State Senate, $800 thousand
		(C) Member of the Board of Equalization, $400 thousand
		(D) Statewide office other than Governor, $2 million
		(E) Governor, $15 million
	91099 (b) (2) The amount of Clean Money funding for a performance-qualified candidate in a general election is 50% of the amount an office-qualified party candidate could receive.
	91099 (b) (3) The amount of Clean Money funding for a qualified candidate in a contested general election is 25% of the amount an office-qualified candidate running for the same office could receive.
	91101 (a) No contributions totaling more than $500 per election shall be made by a person, other than a small contributor committee or political party committee, to any nonparticipating candidate for the legislature or the State Board of Equalization.  No such nonparticipating candidate shall accept from a person, other than a small contributor committee or a political party committee, any such contribution. If the candidate is running for a statewide office, the contribution is capped at $1,000. Contributions per 91115 are not subject to this limit.
	91101 (b) The restriction of (a) does not apply to a nonparticipating candidate's contributions of personal funds to the candidate's own campaign.
	91103  Contributions to and from a small contributor committee are capped in the same way, at $2500 per election.
	91105 (a) Contributions to and from any independent expenditure committee are capped in the same way, at $1000 per calendar year, if these are for the purpose of making expenditures in support of the election or defeat of a candidate for state office.
	91105 (b) Contributions to and from any committee, other than a political party committee, are capped at $1000 per calendar year, if these are for the purpose of making contributions to any committees, including ballot measure committees, controlled by candidates for elective state office.
	91105 (c) Contributions to and from any political party committee, are capped at $7500 per calendar year, if these are for the purpose of making contributions for the support or defeat of candidates for state office or for the purpose of making contributions to any committees, including ballot measure committees, controlled by candidates for state office.   This limit applies to contributions made to a political party intended to be used for communications to party members related to the candidate's candidacy for elective state office.
	91105 (d) Nothing in this chapter limits a nonparticipating candidate for elective state office from transferring contributions to a political party committee.
	91105 (e) None of the entities limited constrained by the above shall accept a contribution from a registered state lobbyist or lobbying firm, or from a state contractor, if the state contractor has present or potential future business with the governmental agency for which the candidate is seeking election or the governmental agency of the elected state officer.
	91105 (f) No committee controlled by a candidate or officeholder shall make any contribution to any other candidate running for state office or his or her controlled committee.
	91105  (g) No person shall contribute more than a total of $7,500 in any calendar year, to all candidates for elective state offices and their controlled committees, political party committees, and any other committees.  An exception is that a person may contribute an additional $7,500 in a calendar year to independent expenditure committees that support or oppose candidates for state office.
	91105  (h) A candidate's controlled committee shall not make independent expenditures or contributions to another committee which makes independent expenditures to support or oppose other candidates.
	91106 The contribution and expenditure limits and restrictions of this chapter apply to special elections and special runoff elections.  These are separate elections for purposes of the contribution and expenditure provisions set forth in this chapter.
	91107 (a) On the same day that a nonparticipating candidate spends more money than the initial amount of Clean Money funding allocated to the candidate's participating candidate opponent for any of the elections covered in 91099, the nonparticipating candidate must notify the Commission, reporting the difference, which is by definition an "excess expenditure".  Upon receiving notification, the Commission shall immediately notify all other candidates in that election.
	91107 (b) Once this is done, the non-participating candidate must also report again each time the difference increases by an increment of $5,000.  Notice must be given within 24 hours.
	91107 (c)  The Commission may use its own judgment as to whether (a) or (b) have happened, without relying upon notification from the nonparticipating candidate.
	91107 (d) Once the Commission is aware that an excess expenditure has occurred, within 1 business day it shall release additional Clean Money funding to the opposing participating performance-qualified and office-qualified candidates, up to the limits specified in 91095(b).
	91107.5 (a) No candidate shall contribute more than $25,000 in personal funds to his campaign if that would make the total amount contributed from all sources amount to more than the amounts listed for each of the elections listed in 91099 until (b) and (c) below have been done.
	91107.5 (b) The candidate must give notice of intent to do so contribute online, electronically, by facsimile, or personal delivery, to all opponents and to the Commission within 15 days of the decision to contribute, specifying the amount.
	91107.5 (c) The personal funds shall first be deposited in the candidate's campaign contribution checking account, which must happen at least 15 days before the election.  These will be considered an expenditure made by the candidate and will trigger matching funds per 91095.
	91107.5 (d) If the candidate contributes more in personal funds than is provided by this section, the matching fund limit of 91095(b) shall be doubled for all opposing participating candidates.
	91109 (a) A committee, including a political party committee, that makes independent expenditures of $1,000 or more to support or oppose a candidate must file a report with the Commission within 24 hours of the time it is made.
	91109 (b) The expenditure will not be considered independent and will instead be considered to be a contribution to a candidate if the expenditure is made in any cooperative way with the candidate on whose behalf the expenditure is made, or in any cooperative way with any controlled committee or any agent of the candidate.
	91109 (c) The report to the Commission shall include a signed statement affirming that the expenditure is independent and not coordinated with a candidate or a political party.
	91109 (d) Any committee that fails to file the required report or provides false information in the report may be fined up to three times the amount of the independent expenditure.
	91109 (e) Once the Commission is aware that an independent expenditure has occurred, within 1 business day it shall release additional Clean Money funding to all  participating candidates in that specific primary or general election whom the Commission determines were not beneficiaries of the independent expenditure.
	91113 (a - d) All broadcast and print advertisements paid for by a candidate or candidate-controlled committee  shall include a statement indicating that the candidate has approved of the contents of the advertisement.  The statement must be clearly audible and "appropriately conveyed" for the hearing impaired.  In a print advertisement, the statement must be clearly printed in no less than 10-point type.  "Advertisement" does not include a campaign button smaller than 10 inches in diameter or a bumper sticker smaller than 60 square inches.
	91115 (a) A candidate or elected state officer may establish a separate account to defray attorney's fees and other related legal costs if he is subject to proceedings arising directly out of the conduct of an election campaign, the electoral process, or the performance of the officer's governmental activities and duties.  These funds may be used only to defray those attorney's fees and other related legal costs.
	91115 (b) To defray officeholder expenses, an elected state officer who accepted Clean Money benefits in the election, and is a member of the Legislature, shall receive $50,000 annually from the Clean Money Fund; if a statewide officer, $100,000.  The officer shall not accept private contributions from any source for his or her officeholder account for the currently held office unless they are intended to be used as the next campaign's seed money, as discussed under 91087.  If the amount of seed money raised exceeds the amounts of 91087, the candidate, as of the start of the next calendar year, shall no longer receive money for an officeholder account  and may raise private contributions for an officeholder account in accord with (c).
	91115 (c) An elected state officer who did not accept Clean Money benefits may establish a separate account to defray officeholder expenses.  No funds from this account shall be used for a mass mailing.  The total amount contributed to any officeholder account shall not exceed $50,000 annually for any legislative officer or $100,000 for any statewide officer.
	91115 (d) A statewide officer may establish an inaugural account to cover the cost of events that take place in regard to the officer's inauguration.  No inaugural account may exceed $500,000.
	91115 (e) A candidate or officer may receive contributions of up to $500 per person per year for the accounts of (a), (c), and (d).  All contributions shall be reported in a manner to be determined by the Commission.  Contributions to such funds shall not be considered campaign contributions.
	91115 (f) A candidate or officer who has established a legal account per (a) shall dispose of all leftover funds once the legal dispute is resolved, for any of the five purposes listed at 89519. []
	91115 (g) An elected state officer who has established an officeholder account with a Clean Money payment shall return all leftover funds to the Clean Money fund once the officer leaves.
	91115 (h) An elected state officer who has established an officeholder account with a Clean Money payment shall dispose of all leftover funds once the officer leaves office for any of the five purposes listed at 89519. []
	91117 No candidate or any candidate-controlled committee shall receive any contributions prior to the beginning of the exploratory period.
	91119 A nonparticipating candidate may transfer campaign funds from one to another of his own controlled committees.  Transferred contributions shall be linked to named contributors using a "last in, first out" or "first in, first out" accounting method, and, in total, these contributions, combined with all other contributions from the same contributor shall not exceed the limits listed in 91101, 91103 or 91105.
	91121 A nonparticipating candidate may accept a contribution after the date of the election only if the contribution does not exceed the outstanding debt from the election and it does not exceed the contribution limit for that election.  All debts must be paid or written off no later than 90 days after the general election.
	91123 Candidates may accept monetary or in-kind contributions from political parties up to a total limited by the office:
	91123 (a) For each participating and non-participating candidate in a primary, special, or special runoff election:
	91123 (a) (1)  Member of the Assembly, $12,500
	91123 (a) (2)  Member of the State Senate, $25,000
	91123 (a) (3)  Member of the Board of Equalization, $12,500
	91123 (a) (4)  Statewide office other than Governor, $100,000
	91123 (a) (5)  Governor, $500,000
	91123 (b) For each participating and non-participating candidate in a contested general election:
	91123 (b) (1)  Member of the Assembly, $20,000
	91123 (b) (2)  Member of the State Senate, $40,000
	91123 (b) (3)  Member of the Board of Equalization, $20,000
	91123 (b) (4)  Statewide office other than Governor, $200,000
	91123 (b) (5)  Governor, $750,000
	These contributions shall not count against the Clean Money funding amounts available to participating candidates and the money may be spent directly without using a Clean Money Debit Card.
	91127 Candidates who are participating candidates will be shown as such in the state ballot pamphlet
	91131 (a) Participating candidates are entitled to a free statement, not exceeding 250 words, in the state ballot pamphlet, and on any Internet Web site listing of candidates maintained by any government agency.  The candidate may also provide a list of ten endorsers for the ballot pamphlet.
	91131 (b) A nonparticipating candidate may also insert a statement and a list of endorsers, but must pay the pro rata cost of printing, handling, translating, and mailing.
	91132 Using the income provided by 91134  (a) (3) the Secretary of State shall conduct voter education and outreach efforts throughout the state regarding the Clean Money Act, and specifically the text required to be added to the ballot by 13207(a)(2)(A). []
	91133 The Clean Money Fund is created in the State Treasury.  The Franchise Tax Board shall deposit into the Clean Money Fund fees generated from the following assessments:
	91133 (a) an increase of 0.2 in the rate for amounts paid on taxable income as provided in Section 23151 (g) of the Revenue and Taxation Code [from 8.84 percent to 9.04 percent, as added by this Initiative - this is a "privilege tax" on corporations];
	91133 (b) an increase of 0.2 in the rate for amounts paid on taxable income as provided in Section 23186 (b) of the Revenue and Taxation Code [from 10.84 percent to 11.04 percent, as added by this Initiative - this is a tax on banks.  23186(b) refers to 23181, which is modified by this Initiative]; and
	91133 (c) an increase in the tax imposed on passive investment income under Section 23811 of the Revenue and Taxation Code from 1.5 percent to 1.66 percent of annual net passive investment income for corporations with over $50 million in total receipts.  [This is a tax on banks.]
	91134 (a) The Franchise Tax Board will administer the Clean Money Fund, which is hereby established for the following purposes:
	91134 (a) (1) To provide public financing for election campaigns.
	91134 (a) (2) To pay the administrative and enforcement costs of the Commission related to this chapter.  The Commission shall be appropriated no less than $3 million annually to administer this act..
	91134 (a) (3) To pay for the voter education and outreach efforts of 91132.  The annual amount available shall be no more than 5% of the amount spent for public financing in each of the first two years following implementation of this initiative, and no more than 1% every year thereafter.
	91134 (b) Money collected to satisfy this section shall first be collected in the 2007-08 fiscal year and in each subsequent fiscal year.
	91135 Other sources of money to be deposited in the Clean Money Fund shall include all of the following:
	91135 (a)  Candidates' qualifying contributions
	91135 (b)  Candidates' excess seed money
	91135 (c)  Unspent or uncommitted Clean Money funds paid to candidates, which shall be returned no later than thirty days following the date of the close of the primary election period or the general election for which they were distributed.
	91135 (d)  Fines levied by the Commission against candidates for violation of election laws.
	91135 (e)  Donations made directly to the Clean Money Fund.
	91135 (f)  Any interest generated by the Clean Money Fund.
	91136 The amount of money in the Clean Money Fund shall not exceed $24 for each California resident.  Any money over this amount shall be irrevocably transferred to the General Fund.
	91137 Limits on Contributions to Candidate-Controlled Ballot Measure Committees
	91137 (a) These limits apply only to a ballot measure committee that is controlled by a candidate.
	91137 (b) If a ballot measure committee is controlled by a candidate, no person shall make a total contribution  more than $10,000.  This contribution limit applies to the total contributions made by any person to all ballot measure committees controlled by the same candidate, even if those committees have different purposes, and even if one or more of those committees is controlled by more than one candidate.
	91137 (c) A ballot measure committee that is controlled by a candidate is subject to the post-election fundraising limitations of Section 85316. []
	91138 (a - g) It is illegal for any bank or any corporation to make a contribution or expenditure in connection with the election of any candidate for state office, and for a candidate to accept any such contribution.  Some common sense exceptions are allowed, such as interest on bank accounts.  Banks are specifically allowed to:
		(c)(2)Engage in nonpartisan voter registration, and get-out-the-vote efforts.
		(c)(3)Establish a fund to be used to make political expenditures, provided that the contributions to the fund are voluntary and from stockholders or employees of the bank
	91139 (a - f) It is illegal for any bank or any corporation to make contributions or expenditures, whose total exceeds $10,000, to support or oppose the qualification, passage or defeat of a state ballot measure, and for a candidate to accept any such contribution.  The same exceptions apply as for 91138.
	91140 (a - c) Non-profit organizations are specifically excepted from the limitations imposed by 91138 and 91139, and are defined.
	91141 (a - c) The Commission will issue "a line of debit" and "Clean Money Debit Cards"  to all participating candidates, who will use them to pay for all campaign costs and expenses up to the limit of Clean Money funds received.  No other means of payment will be allowed, except for a daily petty cash allowance of $100 that may be drawn on the card.
	91143 (a - c) Money provided for primaries and not spent by the end of the primary period shall be returned to the Fund.  Money provided for the general election and not spent by the end of the general election period shall be returned to the Fund.  Outstanding bills are to be paid no later than 30 days following the end of the specific period.
	91143 (d) Participating candidates may be replaced, and may use the Clean Money funds provided for the replaced candidate, if they agree to take on all the obligations of the outgoing candidate.
	91144 The Commission shall adjust the contribution limitations, spending limits, seed money provisions, funding amounts provided and the Clean Money Fund provisions in January of every odd-numbered year to allow for cost -of-living changes.
	91145 No later than December 6 of each year, the Commission will provide a report to the Legislature, containing a review and analysis of the functioning of the Clean Money Fund.  The Commission may make recommendations for changes to the Clean Money rules, and the Legislature may make them, by a 55% vote.
	91146 (a - c) Candidates must not accept more Clean Money Funding than they are entitled to, and must abide by these regulations.  Failure to do so is a misdemeanor, prosecution for which must begin within 4 years of the offense being committed.
	91147 (a) No person convicted of a misdemeanor under this chapter shall act as a lobbyist, state contractor, run for elective office, or be eligible for appointed office or commission appointment for a period of five years following the date of the conviction.
	91147 (b) If the court determines that the violation was intentional and involved an amount that had or could have had a material effect on the outcome of the election, the candidate may be fined up to $25,000 or imprisoned for up to 5 years, or both.
	91147 (b) (1) If the candidate is convicted and the violation affected the outcome of the election, or the participating candidate spent 10% more than the received Clean Money funding, the candidate must repay an amount up to 10 times the value of the excess, and:
		(A) if the conviction becomes final before the date of the election, any votes for that candidate will not be counted.;
		(B) if the conviction becomes final after the date of the election, and the candidate was declared to have been elected, the candidate shall not assume office.  The office shall be deemed vacant and shall be filled as otherwise provided by law;
		(C) if the  conviction becomes final after the candidate has assumed office, then the candidate shall be removed from office.  The office shall be deemed vacant and shall be filled as otherwise provided by law; and
		(D) the person convicted shall be ineligible to run for any office for five years after the date of the conviction.
	Section 2
	Amends Section 13207 of Article 1, Chapter 3 of Division 13 of the Elections Code
	13207 (a) (2) (A and B)  Are added, to provide text on the ballot saying that the candidate is or is not a participant in the public campaign funding system.
	Section 3
	Amends Section 82016 of the Government Code
	82016 (c) (1 and 2) Are added to define what candidate control of a ballot measure committee means.
	Section 4
	Amends Section 82025 of the Government Code
	82025 (a) Unchanged [Expenditure defined as "a payment, a forgiveness of a loan, a payment of a loan by a third party, or an enforceable promise to make a payment, unless it is clear from the surrounding circumstances that it is not made for political purposes".]
	82025 (b) [Expanding the definition, now] "Expenditure" includes any monetary or non-monetary payment made by any person that is used:
	82025 (b) (1) for any communications that expressly advocate the nomination, election or defeat of a clearly identified candidate, or the qualification, passage or defeat of a clearly identified ballot measure or measures; or
	82025 (b) (2) for any broadcast, cable, or satellite communications that (A) refer to a clearly identified candidate for elective state office or to a state ballot measure that has qualified to appear on the ballot, (B) are made within 30 days before a primary election or 60 days before a general, special, or special runoff election for the office sought by the candidate or at which the state ballot measure will be voted on, and (C) can be received by 50,000 or more persons in the electoral jurisdiction in which the candidate or ballot measure will be voted on.
	82025 (c) Certain items are NOT to be considered as expenditures. They are: (A) a communication appearing, in a bona fide news story, commentary, or editorial distributed through the facilities of any regularly published newspaper, magazine, periodical of general circulation. or broadcasting station, unless such facilities are owned or controlled by any political party, committee, or candidate; B) a communication which constitutes a candidate debate or forum, or which solely promotes such a debate or forum, and is made by or on behalf of the person or entity sponsoring the debate or forum; (C) a communication in a regularly published newsletter or regularly published periodical, whose circulation is limited to an organization's members, employees. shareholders, other affiliated individuals and those who request or purchase the publication; or (D) any other exceptions "the Commission may promulgate".
	Section 5
	Amends Section 82031 of the Government Code
	82031 "Independent expenditure" means an expenditure, as defined in Section 82025, subdivision (b), made by any person but which is not made to, or at the behest of, or in coordination with the affected candidate or committee.  [Text in italics is added]
	Section 6
	Repeals Sections 85203, 85205, 85206, 85300, 85302, 85303, 85304, and 85305 from the Government Code
	[85203 defines "small contributor committee".  This initiative redefines the term (at 91057) , carrying forward all of the old criteria defining it, and adding "The committee is not a candidate-controlled committee per 82016. 85205 defines "Political party committee".  This initiative carries forward the same definition (at 91069). 85206 defines "public moneys", by reference to 426 of the Penal Code. [] 85300 says "No public officer shall expend and no candidate shall accept any public moneys for the purpose of seeking elective office." 85302 talks about restrictions on the contributions that small contributor committees may make. 85303 talks about restrictions on the contributions that persons may make to political party committees and to other committees. 85304 authorizes candidates to set up distinct accounts to cover legal fees. 85305 talks about limits for one candidate contributing to another.]
	Section 7
	Amends Section 85306 of the Government Code
	85306 (a)  Is removed [This talks about the candidate moving money from one of his controlled committees to another.  The old language is carried forward and used at 91119 in this initiative, except "candidate" becomes "non-participating candidate" and the maximums become those imposed by this Initiative]
	85306 (a and b) are unchanged [Except for being relettered to allow for removal of old (a)]
	85306 (c)  [new] A candidate may transfer funds without limitation from one ballot measure committee controlled by the candidate to another ballot measure committee controlled by the same candidate.
	Section 8
	Repeals Sections 85314, 85317, 85318, 85400, 85401, 85402, 85403, 85501, 85600, 85601, and 85702 from the Government Code
	[85314 talks about contribution limits in special elections. 85317 allows a candidate to carry over contributions from one election to another. 85318 allows candidates to accept contributions for general elections before the primary election has concluded. 85400 defines campaign expenditure limits, for candidates who agree to accept the limits.  The old limits, for primaries and general elections, by office, are: Assembly $400,000 and $700,000; State Senate $600,000 and $900,000; Board of Equalization $1,000,000 and $1,000,000; statewide candidate other than Governor $4,000, 000 and $6,000,000, and Governor $6,000,000 and $10,000,000.  New limits imposed by this initiative are at 91099. 85401 requires candidates in writing to accept or reject voluntary expenditure limits. 85402 allows the candidate so promising to exceed the expenditure limit if his opponent contributes a certain amount of his own personal money. 85403 sets punishment for candidates who accept expenditure limits and then exceed them. 85501 forbids a candidate's controlled committee from making independent contributions. 85600 requires the ballot statement to show which candidates have agreed to expenditure limits. 85601 allows candidates who have accepted expenditure limits to buy space for a campaign statement in the ballot statement, and denies that ability to candidates who have not. 85702 forbids office holders from accepting contributions by registered lobbyists.]
	Section 9
	Amends, in Article 2, Chapter 2 of Part 11 of Division 2 of the Revenue and Taxation Code, Sections 23151,23181,23183, 23501 and 23811 are amended to read:
	23151 [To a long and otherwise unchanged section, adds]
	23151 (g) (1) For the year starting January 1,2007, the tax imposed under this section [which covers the "privilege tax" imposed on corporations] shall be the sum of both of the following:
		(A) A tax related to net income,  at the rate of 9.04%  [an increase of .2% over the current tax rate] based upon the net income for the next preceding income year.
		(B) A tax related to net income at the rate of 9.04% based upon the net income for the first taxable year starting January 1, 2007.
	23151 (g) (2) Except as specified in provided in (1 ) for taxable years starting January 1,2007, the tax shall be a tax related to net income at the rate of 9.04%  based upon the net income for that taxable year.
	23181 [To a long and otherwise unchanged section, adds]
	23181 (g) (1) For the year starting January 1, 2007, the tax imposed under this section [which covers the annual tax on banks] shall be the sum of both of the following:
		(A) A tax related to net income, at the rate of 11.04%  based upon the net income for the next preceding income year.
		(B) A tax related to net income at the rate of 11.04% based upon the net income for the first taxable year starting January 1, 2007.
	23181 (g) (2) Except as specified in provided in (1 ) for taxable years starting January 1, 2007, the tax shall be a tax related to net income at the rate of 11.04% based upon the net income for that taxable year.
	23183 [To a long and otherwise unchanged section, adds]
	23183 (d) (1) For the year starting January 1, 2007, the tax imposed under this section [which covers the annual tax on financial corporations] shall be the sum of both of the following:
		(A) A tax related to net income, at the rate of 11.04%  based upon the net income for the next preceding income year.
		(B) A tax related to net income at the rate of 11.04% based upon the net income for the first taxable year starting January 1, 2007.
	23183 (d) (2) Except as specified in provided in (1 ) [which to this analyst seems to call for a double tax in the first year] for taxable years starting January 1,2007, the tax shall be a tax related to net income at the rate of 11.04%  based upon the net income for that taxable year.
	23501 [Slight change, to add, in a section discussing Annual tax on corporations]
	23501 (d) For calendar or fiscal years ending after December 31, 2006. the rate of tax shall be the rate specified for those years by Section 23 151.
	23811 [Slight Change to add to a long Section covering taxes on passive investments (S corporations)]
	23811 [This existing paragraph imposes a tax on passive income] The Initiative increases the tax "from 1.5 percent to 1.66 percent of taxable net passive investment income for the next preceding income year for corporations with over $50 million dollars in total receipts."
	Section 10
	Adds Section 24586 to Chapter 11.7 of Part 11 of Division 2 of the Revenue and Taxation Code:
	24586 (a) Each year, the Franchise Tax Board will determine the total generated by increases in the tax rates for tax years beginning January 1,2007 and thereafter per Revenue and Taxation Code Sections 23151, 23181,23183, 23501, and 23811, as amended [by this Initiative], and notify the Controller of that amount.
	24586 (b) The Controller shall transfer the amount of (a) to the California Clean Money Fund.  The administration  costs of the Franchise Tax Board and the Controller to collect the funds are to be withheld from the transfer, but may be made up by appropriation by the Legislature.
	24586 (c) Money deposited in the California Clean Money Fund, shall be allocated to the Fair Political Practices Commission.
	24586 (d) This Section stays in effect as long as the California Clean Money Fund stays in effect.
	Section 11
	Explains why this Initiative is not governed by Article XIIIB (Prop 13) of the State Constitution.
	Section 12
	Explains this Initiative amends the Political Reform Act of 1974, as amended.
	Section 13
	a. Standard Severability Clause
	b.  Mentions a judgment by the Ninth Court of Appeals, Montana Chamber of Commerce v. Argenbright, that invalidated a Montana law prohibiting corporate contributions or expenditures in connection with a ballot measure election, but contends that decision was incorrect.
	Section 14
	Instructs that the Initiative is to be broadly viewed.  It may be amended by 2/3 vote of both houses of the Legislature.  At least 12 days prior to this vote, copies of the bill of amendment must have been delivered to the California Fair Political Practices Commission for distribution to the news media and to every person who has requested the Commission for copies of such bills.
	Section 15
	This Initiative becomes effective immediately upon its approval by the voters and applies to all elections held on or after January 1, 2007.
	Section 16
	If this Initiative conflicts with any other n the ballot, the one receiving the most votes wins.  If the other wins, but is later held to be invalid, this one wins.
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