AB 2421: Political Reform Act of 1974: committee termination.
- Session Year: 2025-2026
- House: Assembly
- Latest Version Date: 2026-07-13
Current Status:
Passed
(2026-07-13: Chaptered by Secretary of State - Chapter 75, Statutes of 2026.)
Introduced
In Committee
Awaiting First Chamber Vote
Passed First Chamber
In Committee
Awaiting Second Chamber Vote
Passed Second Chamber
Enacted
What does this bill do?
This bill lets the Secretary of State notify and, if no objection is filed, terminate campaign committees that receive $2,000 or more in a year. A committee can be targeted if it hasn’t filed a campaign report for 12 months and has a low cash balance (≤ $3,000, or ≤ $5,000 and owes ≥ $2,000 to the candidate who controls the committee), or if it filed its registration by mistake; the committee has 180 days to object.
The summary is provided by generative AI which can make mistakes. For original language, please view the details in the table below.
The Political Reform Act of 1974 provides for the comprehensive regulation of campaign financing, including requiring the filing of reports of contributions and expenditures. The act requires committees and candidates to terminate their filing obligation, as provided by the Fair Political Practices Commission by regulation, ensuring that the committee or candidate will have no activity that must be disclosed subsequent to the termination.
This bill would provide that if the Secretary of State determines that either of 2 conditions is present, the Secretary of State must provide notice to committees that receive contributions totaling $2,000 or more per year that the committee may be terminated 180 days after the notice is sent. Those conditions are: 1) The committee failed to submit a campaign report for at least the preceding 12 months and either had an ending cash balance of $3,000 or less on its last campaign statement or had an ending cash balance of $5,000 or less on its last campaign statement and owes $2,000 or more to the controlling candidate; 2) The committee filed a statement of organization in error. The bill would specify that if an objection to the termination notice is not filed by the committee or the commission with the Secretary of State within 180 days after the notice is sent, the Secretary of State may terminate the committee.
The Political Reform Act of 1974, an initiative measure, provides that the Legislature may amend the act to further the acts purposes upon a 2/3 vote of each house of the Legislature and compliance with specified procedural requirements.
This bill would declare that it furthers the purposes of the act.
The Political Reform Act of 1974 provides for the comprehensive regulation of campaign financing, including requiring the filing of reports of contributions and expenditures. The act requires committees and candidates to terminate their filing obligation, as provided by the Fair Political Practices Commission by regulation, ensuring that the committee or candidate will have no activity that must be disclosed subsequent to the termination.
This bill would provide that if the Secretary of State determines that either of 2 conditions is present, the Secretary of State must provide notice to committees that receive contributions totaling $2,000 or more per year that the committee may be terminated 180 days after the notice is sent. Those conditions are: 1) The committee failed to submit a campaign report for at least the preceding 12 months and either had an ending cash balance of $3,000 or less on its last campaign statement or had an ending cash balance of $5,000 or less on its last campaign statement and owes $2,000 or more to the controlling candidate; 2) The committee filed a statement of organization in error. The bill would specify that if an objection to the termination notice is not filed by the committee or the commission with the Secretary of State within 180 days after the notice is sent, the Secretary of State may terminate the committee.
The Political Reform Act of 1974, an initiative measure, provides that the Legislature may amend the act to further the acts purposes upon a 2/3 vote of each house of the Legislature and compliance with specified procedural requirements.
This bill would declare that it furthers the purposes of the act.
The Political Reform Act of 1974 provides for the comprehensive regulation of campaign financing, including requiring the filing of reports of contributions and expenditures. The act requires committees and candidates to terminate their filing obligation, as provided by the Fair Political Practices Commission by regulation, ensuring that the committee or candidate will have no activity that must be disclosed subsequent to the termination.
This bill would provide that if the Secretary of State determines that either of 2 conditions is present, the Secretary of State must provide notice to committees that receive contributions totaling $2,000 or more per year that the committee may be terminated 180 days after the notice is sent. Those conditions are: 1) The committee failed to submit a campaign report for at least the preceding 12 months and either had an ending cash balance of $3,000 or less on its last campaign statement or had an ending cash balance of $5,000 or less on its last campaign statement and owes $2,000 or more to the controlling candidate; 2) The committee filed a statement of organization in error. The bill would specify that if an objection to the termination notice is not filed by the committee or the commission with the Secretary of State within 180 days after the notice is sent, the Secretary of State may terminate the committee.
The Political Reform Act of 1974, an initiative measure, provides that the Legislature may amend the act to further the acts purposes upon a 2/3 vote of each house of the Legislature and compliance with specified procedural requirements.
This bill would declare that it furthers the purposes of the act.
The Political Reform Act of 1974 provides for the comprehensive regulation of campaign financing, including requiring the filing of reports of contributions and expenditures. The act requires committees and candidates to terminate their filing obligation, as provided by the Fair Political Practices Commission by regulation, ensuring that the committee or candidate will have no activity that must be disclosed subsequent to the termination.
This bill would provide that if either of 2 conditions is present, the Secretary of State must provide notice to committees that receive contributions totaling $2,000 or more per year that the committee will be automatically may be terminated 180 days after the notice is sent. Those conditions are: 1) The committee failed to submit a campaign report for at least the preceding 12 months and either had an ending cash balance of $3,000 or less on its last campaign statement or had an ending cash balance of $5,000 or less on its last campaign statement and owes $2,000 or more to the controlling candidate; 2) The committee filed a statement of organization in error. The bill would specify that if an objection to the termination notice is not filed by the committee or the commission with the Secretary of State within 180 days after the notice is sent, the Secretary of State must may terminate the committee.
The Political Reform Act of 1974, an initiative measure, provides that the Legislature may amend the act to further the acts purposes upon a 2/3 vote of each house of the Legislature and compliance with specified procedural requirements.
This bill would declare that it furthers the purposes of the act.
The Political Reform Act of 1974 provides for the comprehensive regulation of campaign financing, including requiring the filing of reports of contributions and expenditures. The act requires committees and candidates to terminate their filing obligation, as provided by the Fair Political Practices Commission by regulation, ensuring that the committee or candidate will have no activity that must be disclosed subsequent to the termination.
This bill would provide that if either of 2 conditions is present, the Secretary of State must provide notice to committees that receive contributions totaling $2,000 or more per year that the committee will be automatically terminated 180 days after the notice is sent. Those conditions are: 1) The committee failed to submit a campaign report for at least the preceding 12 months and either had an ending cash balance of $3,000 or less on its last campaign statement or had an ending cash balance of $5,000 or less on its last campaign statement and owes $2,000 or more to the controlling candidate; 2) The committee filed a statement of organization in error. The bill would specify that if an objection to the termination notice is not filed by the committee or the commission with the Secretary of State within 180 days after the notice is sent, the Secretary of State must terminate the committee.
The Political Reform Act of 1974, an initiative measure, provides that the Legislature may amend the act to further the acts purposes upon a 2/3 vote of each house of the Legislature and compliance with specified procedural requirements.
This bill would declare that it furthers the purposes of the act.
This bill would make nonsubstantive changes to that provision.The Political Reform Act of 1974 provides for the comprehensive regulation of campaign financing, including requiring the filing of reports of contributions and expenditures. The act requires committees and candidates to terminate their filing obligation, as provided by the Fair Political Practices Commission by regulation, ensuring that the committee or candidate will have no activity that must be disclosed subsequent to the termination.
This bill would make nonsubstantive changes to that provision.
Committee means any person or combination of persons who directly or indirectly does any of the following:
(a)Receives contributions totaling two thousand dollars ($2,000) or more in a calendar year.
(b)Makes independent expenditures totaling one thousand dollars ($1,000) or more in a calendar year; or
(c)Makes contributions totaling ten thousand dollars ($10,000) or more in a calendar year to or at the behest of candidates or committees.
A person or combination of persons that becomes a committee shall retain its status as a committee until such time as that status is terminated pursuant to Section 84214 or 84214.5.
SEC. 2.Section 84214.5 is added to the Government Code, to read:84214.5.(a)(1)If the Secretary of State determines that a committee, as defined in subdivision (a) of Section 82013, meets either of the conditions of termination described in paragraph (2), the Secretary of State shall provide a written notice to the committees treasurer and the commission that the committee may be terminated 180 days after the date the notice is sent.
(2)(A)The committee failed to submit a campaign report for at least the preceding 12 months and either of the following conditions is present:
(i)The committee had an ending cash balance of three thousand dollars ($3,000) or less on its last campaign statement.
(ii)The committee had an ending cash balance of five thousand dollars ($5,000) or less on its last campaign statement and owes two thousand dollars ($2,000) or more to the controlling candidate.
(B)The committee filed a statement of organization in error.
(b)(1)If the committee or its representative, or the commission, does not file a written objection to termination with the Secretary of State within 180 days after the date the notice is sent pursuant to subdivision (a), the Secretary of State may terminate the committee.
(2)Within 30 days of terminating the committee, the Secretary of State shall provide notice of the termination to the filing officer with whom the committee was required to file its last campaign statement.
SEC. 3.The Legislature finds and declares that this bill furthers the purposes of the Political Reform Act of 1974 within the meaning of subdivision (a) of Section 81012 of the Government Code.
Committee means any person or combination of persons who directly or indirectly does any of the following:
(a)Receives contributions totaling two thousand dollars ($2,000) or more in a calendar year.
(b)Makes independent expenditures totaling one thousand dollars ($1,000) or more in a calendar year; or
(c)Makes contributions totaling ten thousand dollars ($10,000) or more in a calendar year to or at the behest of candidates or committees.
A person or combination of persons that becomes a committee shall retain its status as a committee until such time as that status is terminated pursuant to Section 84214 or 84214.5.
SEC. 2.Section 84214.5 is added to the Government Code, to read:84214.5.(a)(1)If the Secretary of State determines that a committee, as defined in subdivision (a) of Section 82013, meets either of the conditions of termination described in paragraph (2), the Secretary of State shall provide a written notice to the committees treasurer and the commission that the committee may be terminated 180 days after the date the notice is sent.
(2)(A)The committee failed to submit a campaign report for at least the preceding 12 months and either of the following conditions is present:
(i)The committee had an ending cash balance of three thousand dollars ($3,000) or less on its last campaign statement.
(ii)The committee had an ending cash balance of five thousand dollars ($5,000) or less on its last campaign statement and owes two thousand dollars ($2,000) or more to the controlling candidate.
(B)The committee filed a statement of organization in error.
(b)(1)If the committee or its representative, or the commission, does not file a written objection to termination with the Secretary of State within 180 days after the date the notice is sent pursuant to subdivision (a), the Secretary of State may terminate the committee.
(2)Within 30 days of terminating the committee, the Secretary of State shall provide notice of the termination to the filing officer with whom the committee was required to file its last campaign statement.
SEC. 3.The Legislature finds and declares that this bill furthers the purposes of the Political Reform Act of 1974 within the meaning of subdivision (a) of Section 81012 of the Government Code.
Committee means any person or combination of persons who directly or indirectly does any of the following:
(a)Receives contributions totaling two thousand dollars ($2,000) or more in a calendar year.
(b)Makes independent expenditures totaling one thousand dollars ($1,000) or more in a calendar year; or
(c)Makes contributions totaling ten thousand dollars ($10,000) or more in a calendar year to or at the behest of candidates or committees.
A person or combination of persons that becomes a committee shall retain its status as a committee until such time as that status is terminated pursuant to Section 84214. 84214 or 84214.5.
SECTION 1.SEC. 2.Section 84214.5 is added to the Government Code, to read:84214.5.(a)(1)If the Secretary of State determines that a committee, as defined in subdivision (a) of Section 82013, meets either of the conditions of termination described in paragraph (2), the Secretary of State shall provide a written notice to the committees treasurer and the commission that the committee may be terminated 180 days after the date the notice is sent.
(2)(A)The committee failed to submit a campaign report for at least the preceding 12 months and either of the following conditions is present:
(i)The committee had an ending cash balance of three thousand dollars ($3,000) or less on its last campaign statement.
(ii)The committee had an ending cash balance of five thousand dollars ($5,000) or less on its last campaign statement and owes two thousand dollars ($2,000) or more to the controlling candidate.
(B)The committee filed a statement of organization in error.
(b)(1)If the committee or its representative, or the commission, does not file a written objection to termination with the Secretary of State within 180 days after the date the notice is sent pursuant to subdivision (a), the Secretary of State may terminate the committee.
(2)Within 30 days of terminating the committee, the Secretary of State shall provide notice of the termination to the filing officer with whom the committee was required to file its last campaign statement.
SEC. 2.SEC. 3.The Legislature finds and declares that this bill furthers the purposes of the Political Reform Act of 1974 within the meaning of subdivision (a) of Section 81012 of the Government Code.
(a)(1)If a committee, as defined in subdivision (a) of Section 82013, meets either of the conditions of termination described in paragraph (2), the Secretary of State shall provide a written notice to the committees treasurer and the commission that the committee will be automatically may be terminated 180 days after the date the notice is sent.
(2)(A)The committee failed to submit a campaign report for at least the preceding 12 months and either of the following conditions is present:
(i)The committee had an ending cash balance of three thousand dollars ($3,000) or less on its last campaign statement.
(ii)The committee had an ending cash balance of five thousand dollars ($5,000) or less on its last campaign statement and owes two thousand dollars ($2,000) or more to the controlling candidate.
(B)The committee filed a statement of organization in error.
(b)(1)If the committee or its representative, or the commission, does not file a written objection to termination with the Secretary of State within 180 days after the date the notice is sent pursuant to subdivision (a), the Secretary of State shall may terminate the committee.
(2)Within 30 days of terminating the committee, the Secretary of State shall provide notice of the termination to the filing officer with whom the committee was required to file its last campaign statement.
SEC. 2.The Legislature finds and declares that this bill furthers the purposes of the Political Reform Act of 1974 within the meaning of subdivision (a) of Section 81012 of the Government Code.
(a)(1)If a committee, as defined in subdivision (a) of Section 82013, meets either of the conditions of termination described in paragraph (2), the Secretary of State shall provide a written notice to the committees treasurer and the commission that the committee will be automatically terminated 180 days after the date the notice is sent.
(2)(A)The committee failed to submit a campaign report for at least the preceding 12 months and either of the following conditions is present:
(i)The committee had an ending cash balance of three thousand dollars ($3,000) or less on its last campaign statement.
(ii)The committee had an ending cash balance of five thousand dollars ($5,000) or less on its last campaign statement and owes two thousand dollars ($2,000) or more to the controlling candidate.
(B)The committee filed a statement of organization in error.
(b)(1)If the committee or its representative, or the commission, does not file a written objection to termination with the Secretary of State within 180 days after the date the notice is sent pursuant to subdivision (a), the Secretary of State shall terminate the committee.
(2)Within 30 days of terminating the committee, the Secretary of State shall provide notice of the termination to the filing officer with whom the committee was required to file its last campaign statement.
SEC. 2.The Legislature finds and declares that this bill furthers the purposes of the Political Reform Act of 1974 within the meaning of subdivision (a) of Section 81012 of the Government Code.
SECTION 1.Section 84214 of the Government Code, as added by Chapter 289 of the Statutes of 1980, is amended to read:84214.Committees and candidates shall terminate their filing obligation pursuant to regulations adopted by the commission, ensuring that the committee or candidate will have no activity that must be disclosed pursuant to this chapter subsequent to the termination. Such regulations shall not require the filing of any campaign statements other than those required by this chapter. A committee that qualifies solely under subdivision (b) or (c) of Section 82013 shall not be required to file any notice of its termination.Committees and candidates shall terminate their filing obligation pursuant to regulations adopted by the commission which insure that a commission, ensuring that the committee or candidate will have no activity which that must be disclosed pursuant to this chapter subsequent to the termination. Such regulations shall not require the filing of any campaign statements other than those required by this chapter. In no case shall a A committee which that qualifies solely under subdivision (b) or (c) of Section 82013 shall not be required to file any notice of its termination.
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Date
|
Status
|
|---|---|
| Jul 13, 2026 | Chaptered by Secretary of State - Chapter 75, Statutes of 2026. |
| Jul 13, 2026 | Approved by the Governor. |
| Jul 2, 2026 | Enrolled and presented to the Governor at 3 p.m. |
| Jun 25, 2026 | In Assembly. Ordered to Engrossing and Enrolling. |
| Jun 25, 2026 | Read third time. Passed. Ordered to the Assembly. (Ayes 36. Noes 0.). |
| Jun 25, 2026 | Read third time. Passed. Ordered to the Assembly. (Ayes 36. Noes 0. Page 5015.). |
| Jun 23, 2026 | Read second time. Ordered to Consent Calendar. |
| Jun 22, 2026 | From committee: Be ordered to second reading file pursuant to Senate Rule 28.8 and ordered to Consent Calendar. |
| Jun 9, 2026 | From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 5. Noes 0.) (June 9). Re-referred to Com. on APPR. |
| May 27, 2026 | Referred to Com. on E. & C.A. |
| May 14, 2026 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 14, 2026 | Read third time. Passed. Ordered to the Senate. (Ayes 77. Noes 0. Page 5056.) |
| May 14, 2026 | Read third time. Passed. Ordered to the Senate. (Ayes 77. Noes 0.) |
| May 7, 2026 | Read second time. Ordered to Consent Calendar. |
| May 6, 2026 | From committee: Do pass. To Consent Calendar. (Ayes 14. Noes 0.) (May 6). |
| Apr 20, 2026 | Re-referred to Com. on APPR. |
| Apr 16, 2026 | Read second time and amended. |
| Apr 15, 2026 | From committee: Amend, and do pass as amended and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 8. Noes 0.) (April 15). |
| Apr 7, 2026 | Re-referred to Com. on ELECTIONS. |
| Apr 6, 2026 | From committee chair, with author's amendments: Amend, and re-refer to Com. on ELECTIONS. Read second time and amended. |
| Mar 17, 2026 | Re-referred to Com. on ELECTIONS. |
| Mar 16, 2026 | Referred to Com. on ELECTIONS. |
| Mar 16, 2026 | From committee chair, with author's amendments: Amend, and re-refer to Com. on ELECTIONS. Read second time and amended. |
| Feb 21, 2026 | From printer. May be heard in committee March 23. |
| Feb 20, 2026 | Read first time. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Jun 25, 2026 | Consent Calendar 2nd AB2421 Valencia | Senate Floor |
Passed |
|
| Jun 9, 2026 | Do pass, but first be re-referred to the Committee on [Appropriations] with the recommendation: To Consent Calendar | Senate Standing Committee on Elections and Constitutional Amendments |
Passed |
|
| May 14, 2026 | AB 2421 Valencia Consent Calendar Second Day Regular Session | Assembly Floor |
Passed |
|
| May 6, 2026 | Do pass. To Consent Calendar. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 15, 2026 | Do pass as amended, and be re-referred to the Committee on [Appropriations] with recommendation: To Consent Calendar | Assembly Standing Committee on Elections |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
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Organization
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Position
|
Date
|
|---|---|---|
| California Common Cause | ** Support | |
| California FAIR Political Practices Commission | ** Support | |
| FPPC | ** Support |
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-4171 | AB 2421 |
CONSENT
Bill No: AB 2421
Author: Valencia (D)
Amended: 4/16/26 in Assembly
Vote: 27
SENATE ELECTIONS & C.A. COMMITTEE: 5-0, 6/9/26
AYES: Wiener, Choi, Allen, Cervantes, Umberg
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 77-0, 5/14/26 (Consent) - See last page for vote
SUBJECT: Political Reform Act of 1974: committee termination
SOURCE: California Fair Political Practices Commission
DIGEST:
This bill terminates a campaign committee when the committee has a cash balance of $3,000 or less and has not filed a campaign report for at least the preceding 12 months.
ANALYSIS:
Existing law:
- Creates the Political Reform Act (PRA), which sets campaign finance and disclosure laws for state and local campaigns, candidates, officeholders, and ballot measures, and establishes the Fair Political Practices Commission (FPPC) to implement, administer, and enforce the PRA.
- Requires, pursuant to the PRA, candidates for elective office, committees formed to support or oppose candidates for public office or ballot measures, slate mailer organizations, and other specified entities, to file periodic and activity-based campaign reports disclosing contributions, expenditures, and other related matters.
- Defines a committee as a person, or combination of persons, who receives contributions of more than $2,000 in a calendar year, makes independent expenditures totaling $1,000 or more in a calendar year, or makes contributions totaling $10,000 or more in a calendar year to or at the behest of candidates or committees.
- Allows a committee to terminate provided that the committee or candidate will have no activity to disclose pursuant to the PRA’s requirements for filing campaign reports.
This bill:
- Terminates a committee 180 days after the Secretary of State (SOS) sends written notice to the committee’s treasurer and to the FPPC that the SOS has determined that the committee has either:
- Failed to submit a campaign report for at least the preceding 12 months and had an ending cash balance of $3,000 or less on its last campaign statement or an ending cash balance of $5,000 or less while $2,000 or more is owed to the controlling candidate.
- Filed a statement of organization in error.
- Permits the committee, its representative, or the FPPC to file a written objection to the termination within the180 days, which stops the termination. If the SOS receives no objection, then the committee terminates and within 30 days of that termination, the SOS shall send a notice to the filing officer with whom the committee was required to file its last campaign statement.
Comments
- Author’s Statement. This bill would improve the accuracy and integrity of our campaign finance disclosure system. By creating a process for the SOS to terminate inactive campaign committees, while still allowing committees the opportunity to object, this bill would ensure our database is up to date and reduces administrative burdens for regulators. This would allow the FPPC to focus its resources on compliance issues and investigations, creating stronger enforcement and oversight.
- Cal-Access and CARS. In 2000, the SOS deployed, pursuant to SB 49 (Karnette, Chapter 866, Statutes of 1997), the California Automated Lobby Activity and Campaign Contribution and Expenditure Search System, or Cal-Access. Cal-Access replaced the paper-based system and provides on-line filing of reports and statements required by the PRA. It also provides online access to these statements and reports for the public.
SB 1349 (Hertzberg, Chapter 845, Statutes of 2016) directed the SOS, in consultation with the FPPC, to replace Cal-Access with a new disclosure system, the Cal-Access Replacement System or CARS. The SOS expects to fully deploy CARS by the end of 2026 at which time all filing of campaign reports will be made online.
In the lead up to that deployment, the SOS and FPPC have sponsored a number of bills, including this one, to ensure that statute facilitates the effective operation of CARS.
Related/prior legislation
AB 808 (Addis, Chapter 278, Statutes of 2025), among other things, updates terms used in state law to reflect the electronic filing of required campaign-related reports that will occur when the SOS certifies the new online reporting system.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
SUPPORT: (Verified 6/22/26)
California Fair Political Practices Commission (source)
California Common Cause
OPPOSITION: (Verified 6/22/26)
None received
ARGUMENTS IN SUPPORT: The FPPC, the bill’s sponsor, writes in support:
…many committees that should have terminated retain active status in the state’s campaign finance database, CAL-ACCESS. With the new CAL-ACCESS Replacement System (CARS) in development, it is important that the Secretary of State have a mechanism to clear out defunct committees, so that CARS will include the most accurate and up-to-date information about committees possible.
To effectuate this purpose, [this bill] would authorize the Secretary of State to automatically terminate committees under specified circumstances, after a notice period and if no objection is made by the committee or the FPPC.
ASSEMBLY FLOOR: 77-0, 5/14/26
AYES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Castillo, Chen, Connolly, Davies, DeMaio, Dixon, Elhawary, Ellis, Fong, Gabriel, Gallagher, Garcia, Gipson, Jeff Gonzalez, Mark González, Hadwick, Haney, Harabedian, Hart, Hoover, Irwin, Jackson, Johnson, Kalra, Krell, Lackey, Lee, Lowenthal, Macedo, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Papan, Patel, Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Michelle Rodriguez, Rogers, Blanca Rubio, Sanchez, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Ta, Tangipa, Valencia, Wallis, Ward, Wicks, Wilson, Zbur, Rivas
NO VOTE RECORDED: Arambula, Flora, Celeste Rodriguez
Prepared by: Carrie Cornwell / E. & C.A. / (916) 651-4106
6/24/26 16:35:05
**** END ****
SENATE COMMITTEE ON
ELECTIONS AND CONSTITUTIONAL AMENDMENTS
Senator Scott Wiener, Chair
2025 - 2026 Regular
Bill No: Hearing Date: 6/9/26
Author: | |||
Version: |
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Urgency: | Fiscal: | ||
Consultant: | |||
Subject:
DIGEST
This bill terminates a campaign committee when the committee has a cash balance of $3,000 or less and has not filed a campaign report for at least the preceding 12 months.
ANALYSIS
Existing law:
- Creates the Political Reform Act (PRA), which sets campaign finance and disclosure laws for state and local campaigns, candidates, officeholders, and ballot measures, and establishes the Fair Political Practices Commission (FPPC) to implement, administer, and enforce the PRA.
- Requires, pursuant to the PRA, candidates for elective office, committees formed to support or oppose candidates for public office or ballot measures, slate mailer organizations, and other specified entities, to file periodic and activity-based campaign reports disclosing contributions, expenditures, and other related matters.
- Defines a committee as a person or combination of persons who receives contributions of more than $2,000 in a calendar year, makes independent expenditures totaling $1,000 or more in a calendar year, or makes contributions totaling $10,000 or more in a calendar year to or at the behest of candidates or committees.
- Allows a committee to terminate provided that the committee or candidate will have no activity which must be disclosed pursuant to the PRA’s requirements for filing campaign reports.
This bill:
- Terminates a committee 180 days after the Secretary of State (SOS) sends written notice to the committee’s treasurer and to the FPPC that the SOS has determined that the committee has either:
- Failed to submit a campaign report for at least the preceding 12 months and had an ending cash balance of $3,000 or less on its last campaign statement or an ending cash balance of $5,000 or less while $2,000 or more is owed to the controlling candidate.
- Filed a statement of organization in error.
- Permits the committee, its representative, or the FPPC to file a written objection to the termination within the180 days, which stops the termination. If the SOS receives no objection, then the committee terminates and within 30 days of that termination, the SOS shall send a notice to the filing officer with whom the committee was required to file its last campaign statement.
COMMENTS
- Author’s Statement. This bill would improve the accuracy and integrity of our campaign finance disclosure system. By creating a process for the SOS to terminate inactive campaign committees, while still allowing committees the opportunity to object, this bill would ensure our database is up to date and reduces administrative burdens for regulators. This would allow the FPPC to focus its resources on compliance issues and investigations, creating stronger enforcement and oversight.
- Cal-Access and CARS. In 2000, the SOS deployed, pursuant to SB 49 (Karnette), Chapter 866, Statutes of 1997, the California Automated Lobby Activity and Campaign Contribution and Expenditure Search System, or Cal-Access. Cal-Access replaced the paper-based system and provides on-line filing of reports and statements required by the PRA. It also provides online access to these statements and reports for the public.
SB 1349 (Hertzberg), Chapter 845, Statutes of 2016, directed the SOS, in consultation with the FPPC, to replace Cal-Access with a new disclosure system, the Cal-Access Replacement System or CARS. The SOS expects to fully deploy CARS by the end of 2026 at which time all filing of campaign reports will be made online.
In the lead up to that deployment, the SOS and FPPC have sponsored a number of bills, including this one, to ensure that statute facilitates the effective operation of CARS.
- Arguments in Support. The FPPC, the bill’s sponsor, writes in support:
…many committees that should have terminated retain active status in the state’s campaign finance database, CAL-ACCESS. With the new CAL-ACCESS Replacement System (CARS) in development, it is important that the Secretary of State have a mechanism to clear out defunct committees, so that CARS will include the most accurate and up-to-date information about committees possible.
To effectuate this purpose, [this bill] would authorize the Secretary of State to automatically terminate committees under specified circumstances, after a notice period and if no objection is made by the committee or the FPPC.
RELATED/PRIOR LEGISLATION
AB 808 (Addis), Chapter 278, Statutes of 2025, among other things, updates terms used in state law to reflect the electronic filing of required campaign-related reports that will occur when the SOS certifies the new online reporting system.
PRIOR ACTION
Assembly Floor: | |
Assembly Appropriations Committee: | |
Assembly Committee: |
|
POSITIONS
Sponsor: California Fair Political Practices Commission
Support: None received
Oppose: None received
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Date of Hearing: May 6, 2026
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Buffy Wicks, Chair
ABPCA Bill Id:AB 2421
Author:(Valencia) – As Amended Ver:April 16, 2026
Policy Committee: | Elections | Vote: | 8 - 0 |
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Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill allows the Secretary of State (SOS) to terminate an inactive campaign committee following certain procedures.
Specifically, this bill:
- Requires, if the SOS determines that a recipient committee either (a) failed to submit a campaign report for the preceding 12 months and has an ending cash balance of $3,000 or less or $5,000 or less but $2,000 is owed to the controlling candidate or (b) filed a statement of organization in error, the SOS to provide notice to the campaign committee’s treasurer and the Fair Political Practices Commission (FPPC) that the committee may be terminated 180 days after the notice is sent.
- Allows the SOS to terminate the committee if an objection to the termination notice is not filed by the committee or the FPPC.
- Requires the SOS to provide notice of the termination to the committee’s filing officer within 30 days.
FISCAL EFFECT:
- Minor and absorbable costs to the SOS to identify inactive campaign committees and send termination notices to various entities.
- Minor and absorbable costs to the FPPC to receive and review termination notices.
COMMENTS:
- Purpose. According to the author:
By creating a process for the [SOS] to terminate inactive campaign committees, while still allowing committees the opportunity to object, this bill would ensure our database is up to date and reduces administrative burdens for regulators. This would allow the FPPC to focus their resources on compliance issues and investigations, creating stronger enforcement and oversight.
This bill is sponsored by the FPPC.
- Background. Termination of Campaign Committees. Under the Political Reform Act (PRA), a recipient committee is a campaign committee that receives contributions of $2,000 or more per year for political purposes. Unlike independent expenditure committees and major donor committees, which automatically terminate at the end of each calendar year, recipient committees continue in perpetual existence until they are terminated.
In 2011, the FPPC adopted a regulation that allows the FPPC to administratively terminate recipient committees, instead of relying on the recipient committee to file the appropriate paperwork. While this authority has helped reduce the number of inactive committees, the FPPC notes that the process requires time-consuming and resource-intensive staff review.
Cal-Access Replacement System (CARS). California’s antiquated online filing and disclosure system (Cal-Access) for the various reports and statements filed pursuant to the PRA will be replaced by a new system (CARS) scheduled to become operative toward the end of 2026. In preparation for the deployment of CARS, the SOS has been attempting to contact a large number of inactive committees that never officially terminated. This bill allows the SOS to automatically terminate a committee that meets certain criteria if the SOS receives no objection after providing a 180-day termination notice to the committee and the FPPC.
Analysis Prepared by: Irene Ho / APPR. / (916) 319-2081
Date of Hearing: April 15, 2026
ASSEMBLY COMMITTEE ON ELECTIONS
Gail Pellerin, Chair
ABPCA Bill Id:AB 2421 (
Author:Valencia) – As Amended Ver:April 6, 2026
SUBJECT: Political Reform Act of 1974: committee termination.
SUMMARY: Permits the Secretary of State (SOS) to terminate a campaign committee if certain conditions are met. Specifically, this bill:
- Requires the SOS to provide a written notice to the treasurer of a recipient committee and to the Fair Political Practices Commission (FPPC) that the committee may be terminated 180 days after the notice is sent in the following situations:
- The committee failed to submit a campaign report for at least the prior 12 months and either of the following is true:
- The committee had an ending cash balance of $3,000 or less on its last campaign statement.
- The committee had an ending cash balance of $5,000 or less on its last campaign statement and owes $2,000 or more to the candidate who controls the committee.
- The committee had an ending cash balance of $3,000 or less on its last campaign statement.
- The committee filed a statement of organization in error.
- The committee failed to submit a campaign report for at least the prior 12 months and either of the following is true:
- Permits the SOS to terminate a committee that has been provided the written notice specified in 1) if the committee, its representative, or the FPPC does not object in writing within 180 days of the notice being sent. Requires the SOS to notify the filing officer with whom the committee was required to file its last campaign statement within 30 days of terminating a committee pursuant to this authority.
EXISTING LAW:
- Creates the Fair Political Practices Commission (FPPC), and makes it responsible for the impartial, effective administration and implementation of the Political Reform Act (PRA). (Government Code §§83100, 83111)
- Provides that a “committee,” for the purposes of the PRA, means any person or combination of persons who directly or indirectly does any of the following:
- Receives contributions totaling $2,000 or more in a calendar year. These types of committees are commonly referred to as “recipient committees.”
- Makes independent expenditures (IEs) totaling $1,000 or more in a calendar year. These types of committees are commonly referred to as “IE committees.”
- Makes contributions totaling $10,000 or more in a calendar year to or at the behest of candidates or committees. These types of committees are commonly referred to as “major donor committees.” (Government Code §82013)
- Provides that a person or combination of persons that becomes a committee shall retain its status as a committee until such time as that status is terminated. Requires committees and candidates to terminate their filing obligation pursuant to FPPC regulations which ensure that a committee or candidate will have no disclosable activity after the termination. Provides that a committee that is solely an IE committee or a major donor committee is not required to file any notice of its termination. (Government Code §§82013, 84214)
- Permits the Chief of the Enforcement Division of the FPPC to terminate a recipient committee for any of the following reasons:
- The committee failed to file a campaign statement in the previous 12 months, and had an ending cash balance of $3,000 or less on its last campaign statement;
- The committee failed to file a campaign statement in the previous 12 months, had an ending cash balance of $5,000 or less on its last campaign statement, and owes $2,000 or more to the controlling candidate;
- The committee filed a Statement of Organization in error;
- The committee failed to file a campaign statement in the previous 48 months;
- The committee failed to respond to the Enforcement Division's reasonable efforts to contact the committee regarding the committee's failure to file campaign statements or pay annual fees, as specified; or,
- The Chief of the Enforcement Division obtains evidence to show the person responsible for the committee is deceased or incapacitated. (2 Code of California Regulations §18404.2)
- The committee failed to file a campaign statement in the previous 12 months, and had an ending cash balance of $3,000 or less on its last campaign statement;
FISCAL EFFECT: Unknown
COMMENTS:
- Purpose of the Bill: According to the author:
AB 2421 would improve the accuracy and integrity of our campaign finance disclosure system. By creating a process for the Secretary of State to terminate inactive campaign committees, while still allowing committees the opportunity to object, this bill would ensure our database is up to date and reduces administrative burdens for regulators. This would allow the FPPC to focus their resources on compliance issues and investigations, creating stronger enforcement and oversight.
- Cal-Access and the Cal-Access Replacement System (CARS): In 1997, the Legislature passed and Governor Pete Wilson signed SB 49 (Karnette), Chapter 866, Statutes of 1997, which amended the PRA and established the Online Disclosure Act of 1997. SB 49 required the SOS, in consultation with the FPPC, to develop and implement, by the year 2000, an online filing and disclosure system for reports and statements required to be filed under the PRA, as specified. As a result, the SOS created and deployed a system called the California Automated Lobby Activity and Campaign Contribution and Expenditure Search System, commonly referred to as Cal-Access.
Cal-Access is now 27 years old, and the SOS reports that components of the system are no longer supported by their vendor. As a result the system has periodically crashed and denied public access. Additionally, the SOS has indicated that the ability to make modifications to the existing Cal-Access system is very limited. The Legislature has taken steps to replace the Cal-Access system with a new disclosure system commonly referred to as CARS. CARS is scheduled to be deployed toward the end of this year. - Termination of Campaign Committees: Under the PRA, there are three ways in which a person or entity qualifies as a political committee: by receiving contributions of $2,000 or more per year for political purposes (recipient committees); by making IEs of $1,000 or more per year on California candidates or ballot measures (IE committees); or by making contributions of $10,000 or more per year to or at the request of California candidates or ballot measures (major donor committees). While IE committees and major donor committees are required to file reports disclosing their activities, they are not required to file any paperwork to form or terminate their status as a committee if they are not also a recipient committee. Instead, these types of committees automatically terminate at the end of each calendar year.
Recipient committees, on the other hand, continue in perpetual existence until they are terminated. Until early 2012, the only method for terminating a committee was for the committee to file a campaign report noticing its termination once the committee had wound down all campaign activities and was not expected to have disclosable activity after the termination. However, the FPPC found that many recipient committees that were no longer engaged in campaign activity were failing to terminate and mistakenly discontinuing filing required campaign statements. Additionally, some committees registered but never qualified as a committee. When those committees failed to file campaign statements—a violation of the PRA—the filing officers were making enforcement referrals to the FPPC for those committees. As a result, a large amount of resources were being used by filing officers and by the FPPC to handle complaints and referrals related to committees that were no longer engaged in campaign activity, but that technically were violating the PRA by failing to file campaign disclosure reports because they had never terminated their status as a committee.
As a result, in late-2011, the FPPC adopted a regulation allowing it to administratively terminate recipient committees. When a committee is administratively terminated, that action also terminates the committee’s obligations to file subsequent campaign statements, but the committee may not receive contributions or make expenditures exceeding the ending cash balance on the committee's last campaign statement, except to pay outstanding fees or fines.
While this authority has helped reduce the number of inactive committees, the FPPC reports that the administrative termination process requires staff review and an active assessment and determination by the Chief of Enforcement, which can be time-consuming and resource-intensive.
Furthermore, as the SOS has been preparing for the deployment of CARS, it has been attempting to contact a large number of inactive committees that never officially terminated. According to background provided by the author of this bill, the SOS reported that approximately 6,600 committees registered, but never reported reaching the $2,000 threshold for qualifying as a committee, and never took action to terminate as a committee. Another 3,600 committees have not filed campaign reports or amendments in at least 12 months.
By allowing the SOS to automatically terminate committees that meet certain criteria, this bill should help reduce the number of inactive political committees that nonetheless are still shown as active committees in the state’s campaign disclosure records. To protect against termination of committees that are still active, this bill requires the SOS to provide 180 days’ notice to the committee’s treasurer before the committee is terminated. The criteria for a committee to be terminated under this bill is identical to three of the six criteria that the FPPC may use under its regulations for terminating a committee administratively. - Technical Amendments: This bill requires the SOS to send a notice to any committee that meets one of three specified criteria. In some cases, however, the SOS may not have sufficient information to determine whether a committee meets that criteria.
For example, candidates for local office generally file campaign disclosure reports with local filing officers, rather than with the SOS. In such situations, it is unclear how or whether the SOS would know if a committee has filed campaign disclosure reports in the prior 12 months, or what the committee’s ending cash balance was on the last campaign statement that it filed.
To ensure that this bill does not impose requirements that the SOS cannot fulfill, committee staff recommends amending the language on page 2, lines 3-8, of the bill as follows:
84214.5. (a) (1) If the Secretary of State determines that a committee, as defined in subdivision (a) of Section 82013, meets either of the conditions of termination described in paragraph (2), the Secretary of State shall provide a written notice to the committee’s treasurer and the commission that the committee may be terminated 180 days after the date the notice is sent.
Committee staff additionally recommends that this bill be amended to include a cross-reference to the new termination procedure created by this bill in Section 82013 of the Government Code. Specifically, committee staff recommends that the last sentence of Section 82013 be amended as follows:
A person or combination of persons that becomes a committee shall retain its status as a committee until such time as that status is terminated pursuant to Section84214.84214 or 84214.5. - Arguments in Support: The sponsor of this bill, the FPPC, writes in support:
Under the [PRA], a person or combination of persons must register as a recipient committee if they receive contributions of $2,000 or more in a calendar year. The committee retains its status as a committee until the committee actively terminates. FPPC regulations provide the circumstances and timelines under which committees are required to terminate.
Despite these termination requirements, many committees that should have terminated retain active status in the state’s campaign finance database, CAL-ACCESS. With the new CAL-ACCESS Replacement System (CARS) in development, it is important that the Secretary of State have a mechanism to clear out defunct committees, so that CARS will include the most accurate and up-to-date information about committees possible.
- Political Reform Act of 1974: California voters passed an initiative, Proposition 9, in 1974 that created the FPPC and codified significant restrictions and prohibitions on candidates, officeholders, and lobbyists. That initiative is commonly known as the PRA. Amendments to the PRA that are not submitted to the voters, such as those contained in this bill, must further the purposes of the initiative and require a two-thirds vote of both houses of the Legislature.
REGISTERED SUPPORT / OPPOSITION:
Support
Fair Political Practices Commission (Sponsor)
Opposition
None on file.
Analysis Prepared by: Ethan Jones / ELECTIONS / (916) 319-2094
Bill Author
Bill Co-Author(s):