§ 85701.5. — 85701.5. (Added by Stats. 2022, Ch. 942, Sec. 1.)

(a)
(1)
A solicitation by a candidate or committee, directly or through an agent or intermediary, for a recurring contribution shall be in a form that requires affirmative consent from the person making the recurring contribution.
(2)
A candidate
or committee shall not accept a recurring contribution from a person unless the candidate or committee receives the affirmative consent of the person to make a recurring contribution at the time of the initial contribution.
(3)
Passive action by the contributor, such as failing to uncheck a pre-checked box authorizing a recurring contribution, does not meet the requirement of affirmative consent under this
subdivision.
(4)
(A)
A violation of this subdivision occurs each time a candidate or committee solicits a recurring contribution in a form that does not require affirmative consent or accepts an initial recurring contribution in response to a solicitation that was in a form that did not require affirmative consent from the contributor.
(B)
A candidate or committee that accepts recurring contributions subsequent to an initial recurring contribution in response to a solicitation that was in a form that did not require affirmative consent from the contributor is liable for a fine not to exceed three times the aggregate amount of the
subsequent recurring contributions received if all of the following are true:
(i)
The candidate or committee knew or should have known that the solicitation required affirmative consent.
(ii)
The candidate or committee knew or should have known that the contributor did not give affirmative consent for making the recurring contributions.
(iii)
The recurring contributions, in the aggregate, exceed one thousand dollars ($1,000).
(b)
A candidate or committee that accepts a recurring contribution described in subdivision (a) shall do all of the following:
(1)
Provide a receipt to the contributor that clearly and conspicuously discloses all terms of the recurring contribution within three days after the initial contribution is received and within three days after each recurring contribution is received.
(2)
Provide all necessary information to cancel the recurring contribution in each communication with the contributor that concerns the contribution.
(3)
Immediately cancel a recurring contribution upon request of the contributor.
(c)
A recurring contribution accepted in response to a solicitation that did not require affirmative consent shall be returned to the contributor within 14 days of the earlier of receipt of a request from the contributor to return the contribution or the date on which the candidate or committee becomes aware that the solicitation of the recurring contribution was in violation of subdivision (a). A contribution accepted after a contributor requested to cancel a recurring contribution shall be returned to the contributor within 14 days of the request to cancel the recurring contribution.
(d)
This section does not apply to a sponsored committee soliciting or accepting contributions from the sponsor’s members, affiliates, employees, or shareholders.
(e)
For purposes of this section, “recurring contribution” means a contribution from a person to a candidate or committee that is automatically charged to the person’s bank account, credit card, or other payment account on a repeated basis, such as weekly or monthly, without approval or any other affirmative consent by the person after their initial contribution to the candidate or committee.

Legislative History

Added by Stats. 2022, Ch. 942, Sec. 1. (AB 775) Effective January 1, 2023.