BILL ANALYSIS Ó AB 2320 Page 1 Date of Hearing: April 9, 2014 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mike Gatto, Chair AB 2320 (Fong) - As Introduced: February 21, 2014 Policy Committee: ElectionsVote:7-0 (Consent) Urgency: No State Mandated Local Program: Yes Reimbursable: No SUMMARY This bill amends the Political Reform Act (PRA) to expand an existing provision, which prohibits a spouse or domestic partner of an elected officer or a candidate from receiving compensation from campaign funds in exchange for services rendered in connection with fundraising to benefit the elected officer of candidate, to simply prohibit any compensation to the spouse or domestic partner from campaign funds for any services rendered. FISCAL EFFECT Minor absorbable costs to the Fair Political Practices Commission (FPPC), which administers and enforces the PRA. COMMENTS 1)Background . Candidates and officeholders often find themselves the subject of scrutiny and controversy for paying a spouse or other family member for professional services rendered to, and paid by, their campaign committees. SB 739 (Strickland)/Statutes of 2009 prohibits a spouse or domestic partner of an elected officer or a candidate for elective office from receiving compensation from campaign funds held by a controlled committee of the elected officer or candidate for services rendered in connection with fundraising for the benefit of the officeholder or candidate. 2)Purpose . According to the author, "Despite [the above] restrictions, ethnical concerns may continue to arise, because existing law allows a candidate or officeholder to pay a spouse for services other than fundraising services that are AB 2320 Page 2 rendered to, and paid by, the campaign. Under such circumstances, a candidate or officeholder can personally benefit financially from contributions received by his or her campaign. "AB 2320 improves transparency and strengthens campaign integrity by prohibiting a candidate or officeholder from paying his or her spouse or domestic partner from campaign funds for providing services to the campaign." Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081