Ask the Scholar
Document scope · 1 page
Scholar
Ask about this object, its catalog metadata, its source description, or the page inventory.
For page-specific OCR and visual context, open one of the page chats.
Source Description
This file contains:
Draft Memorandum. Re: Statutory requirements affecting solicitation, limitations on contributions and the reporting and filing of campaign financial statements in a California Gubernatorial Campaign. 5pp. [Memo], n.d.
Scholar Source Context
Document identity
localId
26127762
label
WHSF: Returned, 55-9
core
doc
dtoType
document
citationUrl
pageCount
1
Source metadata
id
26127762
sourceUrl
contentType
document
title
WHSF: Returned, 55-9
description
This file contains:
Draft Memorandum. Re: Statutory requirements affecting solicitation, limitations on contributions and the reporting and filing of campaign financial statements in a California Gubernatorial Campaign. 5pp. [Memo], n.d.
citationUrl
collections
Richard M. Nixon's Returned Materials Collection
Returned White House Special Files
imageCount
1
hasImages
yes
source
import
hasTranscription
no
Source extras
naId
26127762
levelOfDescription
fileUnit
recordType
description
ocrSource
nara-archive
Single page context
seq
1
pageIndex
0
type
document
mediaId
6e5c6f735f8d0328
ocrText
Richard Nixon Presidential Library
White House Special Files Collection
Folder List
Box Number Folder Number Document Date
Document Type
Document Description
55
9
n.d.
Memo
Draft Memorandum. Re: Statutory
requirements affecting solicitation,
limitations on contributions and the reporting
and filing of campaign financial statements in
a California Gubernatorial Campaign. 5pp.
Thursday, July 26, 2007
Page 1 of 1
file
Finance
DRAFT
MEMORANDUM
Statutory requirements affecting solicitation, limitations on
contributions and the reporting and filing of campaign financial
statements in a California Gubernatorial Campaign.
IN GENERAL
The purpose of this memorandum is to discuss the legal aspects of
solicitation, limitations on contributions and reporting and filing financial state-
ments affecting the California Gubernatorial Campaign. This will deal both
with contributions originating within the state and from outside the state.
CALIFORNIA STATUTES
California reporting requirements generally are contained in sections
4501 to 4539 of the California Elections Code.
In brief, all candidates and the treasurer of each campaign committee
must file a campaign statement for both the primary and the final election within
35 days after the date of each election. Official forms have now been made
available and are sent to the candidates within 3 days after each election.
The Code requires that the statements show amounts received "in detail".
It also requires that there be a complete listing of all of the contributors of the
money that is received.
This raises the question whether in listing the names of the contributors
it is necessary to couple their names with the specific amounts that that particular
contributor conveyed to the candidate or his committee.
The California law has been interpreted as to not to require such
reporting. It is a strained result but the present Governor of California when he
was Attorney General issued such an opinion in 32 OP Atty Gen 88.
-2-
It requires that all you have to do in the section relating to the receipt
of funds is to list "in detail" all of the funds that you hav received, and then a
separate section requires that you list all of the names of the contributors. In
practice then, candidates, particularly since the Attorney General's opinion,
have made a separate listing of the money received without reference to the
contributor and then dropped to the next section and listed the donors without
relating the amount of the contribution to the names.
The reports for the Governorship must be filed with the California
Secretary of State and a copy with the county clerk in the county in which the
candidate resides.
The question arises as to the date from which receipts and disbursements
must be reported in the primary election. Although there is no case law in this
point, practice has dictated that the filing requirements relate only to transactions
subsequent to the actual filing by the candidate. The filing dates for 1962 are
March 7 to March 30.
With regard to the limitations of campaign contribution, in terms of
amount, this problem is not specifically dealt with in the California Elections Code
and it is not held that individuals or corporations are in any way restricted. The
philosophy of the California Code has been to force disclosure rather than attempt
specific limitation.
WHO HAS DUTY TO FILE CAMPAIGN STATEMENT
A campaign statement must be filed by both the candidate and the treasurer
of each campaign committee. (Section 11560, Elections Code). The candidate
would be required to report personal receipts and expenditures made by him and
also receipt and expenditures of a committee if he has knowledge of a committee's
financial transactions. (20 OPS Atty Gen 197).
-3-
Every committee must appoint a treasurer to "receive and disburse
all monies contribut ed for campaign purposes, and keep a true account thereof,
and shall in the same manner and on the same type of form as required of
candidate, file a campaign statement." (Section 11530, Elections Code).
It is clear that a committee outside the state may solicit and contribute
in a California Gubernatorial election without violating state law. The question
then arises as to whether such a committee must file a separate campaign
statement.
There is no doubt that the treasurer of a committee organized to solicit
and contribute campaign funds in California would be required to file a separate
campaign statement. A "committee" is defined as a "committee or group of
persons organized for the purpose, or charged with the duty of conducting the
election campaign of any political party, or any candidate or group of candidates".
(Secion 11502, Elections Code). It can be assumed that conducting a campaign
includes any group which is organized for the purpose of soliciting contributions
for a candidate. In 32 OPS Atty Gen 88, at P. 96, the opinion stated that where
a dummy organization is set up through which money is contributed to a committee,
the dummy organization itself would constitute a committee, and would be required
to appoint a treasurer and file a campaign statement.
The difficult question is the applicability of the Elections Code to an
out-of-state committee. The Code is silent on this matter. Normally, of course,
the applicability of any state statute does not go beyond the territorial boundaries
of the state. However, if part of a transaction takes place in California and part
outside of California, such part as taken place in California may be sufficient to
provide the basis for applying a California statute to a foreign individual,
corporation or committee,
-4-
The California Corporate Securities Act requires a foreign corporation
to secure a permit to engage in solicitation and sale of its securities in California,
even though the stocks are issued in a foreign state (94 CA 2d 320). It is equally
true that where all the transactions occur without the state, the California
Securities Act would not apply. (47 CA 2d 832, 8 C 2d 241). In analogy to the
Securities Act case, that when a committee outside the state directly contributes
in California, the California Elections Code would be applicable and would require
the committee to file a separate campaign statement. I believe the direct contri-
bution in California would be a sufficient basis to apply the Elections Code.
It should be noted at this time that the enforcement of the requirement
to file a campaign statement is to make violation of the above provision a mis-
demeanor. (Elections Code, Section 12053). The failure to file a campaign
statement, however, is not considered to be an offense against the election franchise
and thus does not provide a ground for contesting an election. Merrick V. Porter
(22 CA 344 (1932); Elections Code, Section 20021.
Section 11563 provides that no officer shall issue any certificate of
nomination or election to any person until his campaign statement has been filed.
The prohibition to issue the certificate applies only if the candidate does not file
a campaign statement. If a committee, supporting a candidate, does not appoint
a treasurer nor file a campaign statement, the officer can not withhold the issuance
of the certificate. (32 OPS Atty Gen 88 (1958).
Unlike many other states, California does not penalize corporate
contributions for state offices. It is clear that an organization whose sole purpose
is to support the election of one or more candidates for a state office in California
can properly solicit and receive contributions from corporations organized under
the law in the state of California or one of the other states of the union and make
expenditures subject to the reservation that certain limited types of corporations
are prohibited from making such a contribution or expenditure. For example, a
-5-
national bank, a federally organized corporation, a government contractor, a
registered holding company or a California licensee under a license granted by
a state agency are not permitted to make political contributions.
FEDERAL STATUTES
Any federal reporting requirements are covered by the Federal
Corrupt Practices Act contained in Title 2 of the U. S. Code Annotated, appearing
primarily in sections 241 to 256.
The federal requirements clearly do not apply to state primary elections.
The committee as proposed does not fall within the definition of a
"political committed" under section 241(c). A political committee is "an organi-
zation which accepts contributions and makes expenditures for the purpose of
influencing or attempting to influence the election of candidates of presidential
or vice presidential elections
The federal jurisdictional requirement is
twofold; one is interstate transaction and the other is the election of a federal
officer. Section 241(b) defines a "candidate" as "an individual whose name is
presented at an election for election as senator or representative in
.
the Congress of the United States
The committee under consideration being organized in behalf of a state
officer would not be required to file a federal campaign statement.