Candidates and Treasurers

Transcription

1 Workshop for Candidates and Treasurers Hosted by: City of Anaheim Presented by: Deborah Hanephin External Affairs and Education Division Fair Political Practices Commission (ASK FPPC) 8/25/16 1

2 About the Fair Political Practices Commission (FPPC): In the wake of the Watergate scandal, California voters passed Proposition 9 in 1974, known today as the Political Reform Act (the Act). The FPPC was created to: administer and enforce the Act, which includes laws related to campaign finance, conflicts of interest, and lobbying activity inform and assist candidates and public officials in complying with these laws. The visual aids used in FPPC workshops are guides for training only and contain only highlights of selected provisions of the law. They do not carry the weight of the law. 2

3 This workshop is designed for local candidates who plan to raise or spend $2,000 or more on their election. What Will You Learn? How to get started General information and rules regarding campaign requirements and prohibitions How to complete and file campaign reports What to do after the election Resources 3

4 Form 700 Statement of Economic Interests file with your local elections office Form 501 Candidate Intention Statement file with your local elections office Form 410 Statement of Organization file original with the Secretary of State (SOS) and a copy with your local elections office registers your committee and gets the committee ID# include $50 committee fee Open Bank Account Filing Schedule Campaign Disclosure Manual 2 for local candidates 4

5 All candidates for elective office must file. File no later than deadline for declaration of candidacy. File with your local elections office. Form 700 is a public document just like your campaign statements. Bryan Bernhardt 5

6 File before receiving or spending money, including personal funds File a new 501 for each election, even if you re running for reelection File with your local filing officer Bryan Bernhardt 6

7 Form 410 Statement of Organization Must show last name, office sought, and election year SOS will reject if is not provided Ben Marks Bryan Bernhardt

8 Form Page 2 8

9 Committee Identification Number Upon receipt of the Form 410, the Secretary of State s Office will assign your committee an ID number. The ID number will be posted on their website at This number is used on all FPPC reporting forms. Note: If your bank requires a taxpayer ID, contact the IRS at (800) or go to their website at 9

10 Before a candidate or committee may receive contributions, a treasurer must be appointed. Both the candidate and treasurer must take appropriate steps to ensure compliance with reporting/recordkeeping rules. Stay informed. Be aware of bank deposits and proper expenditures of campaign funds. In the event of an audit or Enforcement investigation, both the candidate and treasurer are equally liable for non-disclosure on campaign reports or lack of records. 10

11 Candidates don t pay out of pocket! Deposit your personal funds in your campaign bank account first. Record the names and addresses of contributors of $25 or more, and the occupation/employer of individuals who contribute $100 or more. Keep copies of all receipts and contribution documentation for at least four years. 11

12 One bank account per election May be opened as a personal account (if your bank requires a tax ID#, contact the IRS) No commingling of funds (with personal or other committee funds) Candidate must make all campaign expenditures from campaign account Exceptions: Candidate may pay filing fees, ballot statement fees, and the $50 annual committee fee out of pocket Campaign workers/volunteers may make out of pocket expenditures and be reimbursed 12

13 Payment received by candidate Payment made at the behest of candidate Candidate s personal funds Loans from candidate or others Fundraiser tickets (full ticket price) Non-monetary goods and services, including food/beverages Contribution limits may apply to any of these! 13

14 Contributions may be received by credit card, wire transfer, debit account transaction, text message, or similar electronic payment options (including contributions received via the Internet or telephone). 14

15 You must send the contributor a notice that they may need to file as a major donor. A sample notice is provided in Campaign Disclosure Manual 2. The donor may need to file: Form 461 Major Donor Statement Form Hour Contribution Report Major Donor committees should refer to Campaign Disclosure Manual 5. 15

16 These are generally NOT reportable: Volunteer personal services Home/office fundraiser Uncompensated internet activity Certain communications from an organization to its members (Regulation ) 16

17 If the total cost of the event is $500 or less, the occupant/host has not made a contribution. Food, beverages, and other items donated by someone other than the occupant count toward the $500 threshold and are reportable as non-monetary contributions. If the total cost of ALL items is greater than $500, the entire event is reportable. 17

18 Report donated items at fair market value on Schedule C - Non-monetary (In-kind) Contributions. Fair market value is the amount it would cost any member of the public to purchase the item, not necessarily the amount the donor paid. Note: A spouse or domestic partner of an elected officer or a candidate may not receive compensation from campaign funds for services rendered, including fundraising services for the candidate s campaign. 18

19 No cash contributions of $100 or more may be accepted No contributions of $100 or more made by money order or cashier s check may be accepted No anonymous contributions of $100 or more may be accepted 19

20 If: More than 200 similar pieces are sent in a calendar month (mass mailing) Paid for by Bernhardt for City Council 20XX 428 Havenwood Drive Kaysville, CA Jenny Smith 1034 Vista Avenue Kaysville, CA Then: Paid for by and committee name and address must be on the outside of the mailing in no less than 6-point type and in a contrasting color. The committee ID number is recommended, but not required. 20

21 Mass Mailings Recordkeeping Requirement Retain a copy of each mass mailing In your records, keep note of: Date Method of postage Number of pieces 21

22 Go to: FPPC Home Page > Learn > Campaign Rules > Campaign Advertising 22

23 After the election, most candidates file Form 460 semi-annually until the committee is terminated. 23

24 File if contributions totaling $1,000 or more are received from a single source in the 90 days before or on the date of the election Must be filed by fax, personal delivery, guaranteed overnight mail, or online, if available. 24

25 Fast Facts A public document Reviewed by local filing officer Use Form 460 to amend previous statements Generally, the date filed is the postmark on the envelope Subject to $10/day late fees and other enforcement penalties Where to File Local Committees: City Clerk/County Registrar of Voters Multiple Committees: Holding one office and running for another? File for both committees in both locations. 25

26 Money In Schedule A: Contributions Schedule B: Loans Received Schedule C: Non-Monetary Contributions Schedule I: Miscellaneous Increases to Cash Money Out Schedule B: Loan Repayments Schedule E: Expenditures Schedule F: Accrued Expenses Note: Schedules D, G, and H (money out) are not commonly used by local candidates and will not be discussed at this workshop. For more information on these schedules, please see Manual 2 or contact FPPC. 26

27 Form 460 Cover Page Deadline: Check the filing schedule! Check filing schedule for dates Check filing schedule for type of statement The candidate and treasurer must both sign Ben Marks Bryan Bernhardt If candidate is also treasurer, must sign twice! 27

28 Date received = possession of check (not date deposited) or possession of payment information for credit cards. Itemize = disclose details about the contributor - the names and addresses of contributors of $100 or more in a calendar year. For contributors who are individuals, also report the occupation and employer. 28

29 Correct Retired Consultant, A Better Business Agency Self-Employed, No Separate Business Name Homemaker or Student Private Investor: stocks & bonds Lawyer, Ortiz & Smith Incorrect Manager Next Door Neighbor Friend ABBA (no acronyms) Business Person Entrepreneur Investor Contributions of $100 or more must be returned within 60 days if individual s name, street address, occupation, and employer are not obtained. 29

30 Form 460 Schedule A You must include individuals occupation & employer IND = Individual COM = Committee OTH = Other Lump sum - report contributions of less than $100 Amount less than $100 this period is added to previous contribution 30

31 Form 460 Schedule A Sally Morgan James Morgan 804 S. 14th Street Kaysville, CA If one signer on a joint checking account, the signer is the contributor 2/10/ PAY TO THE ORDER OF $ Bryan Bernhardt Two Hundred Dollars DOLLARS Donor made contribution from her business account and another from her personal account Contribution Sally Morgan 31

32 Reporting Contributions Received Through Intermediaries If name on check is different than the true source, disclose both intermediary and true source. Funds are reported under the true source Not disclosing the true source is a serious violation 32

33 Candidate s personal funds may be reported as a loan. Report the bank who loaned the money even if personal assets are used to secure the loan. Each loan from the same person is reported as a separate loan. 33

34 Form Schedule B Report loans until paid off May be negative number 34

35 Examples: food/beverages rental space polls discounts Form 460 Schedule C Non-Monetary Contributions Received 35

36 All expenditures must have a: Political or Legislative or Governmental purpose You may establish credit card account No cash expenditures of $100 or more You may establish petty cash fund ($100 or less) Campaign funds may not be used for personal purposes! 36

37 Form Schedule E An expenditure of $100 or more for a gift, meal, or travel must include certain details. Date, number of attendees, whether candidate &/or any individual with authority to make expenditures attended, and purpose Reimburse candidate for filing fee Credit card payment 37

38 Report subvendors of campaign agents and consultants. Itemize payments of $500 or more. Reimburse campaign workers within 45 days. 38

39 Form Schedule F Reporting Accrued Expenses Report goods or services received, but not yet paid, during reporting period Continue to report as accrued expense until paid off Subtract to get a negative number 39

40 Examples Interest Refunds Sale of donated items (up to fair market value) 40

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42 Must continue to file campaign reports and pay the $50 annual fee until the committee terminates. May continue to receive contributions and use leftover funds for officeholder expenses. May use leftover funds for election to a future office if the funds are redesignated or transferred before they become surplus. Leftover funds become surplus 90 days after leaving office. 42

43 Must continue to file campaign reports and pay the $50 annual fee until you terminate the committee. May use leftover funds for election to a future office if the funds are redesignated or transferred before they become surplus. Funds become surplus 90 days after the end of the semi-annual reporting period. The end of the semi-annual reporting period is June 30 for elections held in the first six months of the year and December 31 for elections held in the last six months. 43

44 Running for Same Office File Form 501 File amended Form 410 Running for Different Office File Form 501 File new Form 410 Open a new bank account Transfer funds to new bank account Note: Remember this must be done before the funds become surplus. 44

45 After the Election Leftover Assets Leftover assets may also become surplus. For personal use, you must purchase the item at fair market value. Proceeds from the sale of items are shown as miscellaneous increases to cash on Schedule I. 45

46 The following criteria must be met: No remaining funds Not receiving or planning to receive contributions Not making or planning to make expenditures Termination Forms 410 and 460 must be filed Note: There is no timeframe for terminating a local committee, but you must continue to file campaign reports and pay the $50 annual fee until the committee terminates. 46

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49 Campaign Rules Page of FPPC Website Campaign Disclosure Manuals Form Instructions Candidate/Treasurer Video on YouTube Your City Clerk or County Elections Office FPPC - advice@fppc.ca.gov FPPC Phones Secretary of State 49

50 Thank You for Attending! Please complete the evaluation form. 50