BILL NUMBER: SB 831 AMENDED
BILL TEXT
AMENDED IN SENATE MARCH 20, 2014
INTRODUCED BY Senator Hill
(Principal coauthor: Senator Beall)
(Principal coauthors: Assembly Members Garcia and Levine)
JANUARY 6, 2014
An act to amend Sections 82015, 89506, and
89513, 89515 , 89516, and 89517 of, and to add
Sections 87106 , 89512.7, and 89515.5 to, the
Government Code, relating to the Political Reform Act of 1974.
LEGISLATIVE COUNSEL'S DIGEST
SB 831, as amended, Hill. Political Reform Act of 1974.
(1) The Political Reform Act of 1974 provides for the
comprehensive regulation of campaign financing and related matters,
including the reporting of campaign contributions, as defined. Under
existing law, a payment made at the behest of a candidate for
elective office is considered a contribution unless the payment is
made for purposes unrelated to the candidate's candidacy, and a
payment is presumed to be unrelated to a candidate's candidacy if it
is made principally for legislative, governmental, or charitable
purposes. Pursuant to the act, payments principally for legislative,
governmental, or charitable purposes made at the behest of a
candidate who is an elected officer must be reported within 30 days
following the date on which the payment or payments equal or exceed
$5,000 in the aggregate from the same source in the same calendar
year in which they are made.
This bill would reduce the reporting threshold for a behested
payment to $2,500. The bill would also require the Fair Political
Practices Commission to post certain behested payment reports on its
Internet Web site within 30 days of receipt of the report. The bill
would prohibit an elected officer from requesting that a payment be
made, or a person from making a payment, at the behest of the elected
officer to a business entity or nonprofit
organization owned or controlled by specified persons, as specified,
including that officer, any other elected officer who serves on the
same elective body as the behesting officer and
, or family members, as defined, of elective
elected officers serving on that elective body
, except as specified .
(2) The act prohibits specified officers from receiving gifts, as
defined, in excess of $440 in value from a single source in a
calendar year. The act exempts gift payments for the actual costs of
specified types of travel that are reasonably related to a
legislative or governmental purpose, or to an issue of state,
national, or international public policy , from the annual
limit on the value of gifts from a single source.
This bill would impose an annual limit on gift payments from a
single source for these types of travel at $5,000. The bill
would also require a nonprofit organization that pays for these types
of travel to disclose the names of donors responsible for
funding the payments, as specified.
(3) The act requires that contributions deposited into a campaign
account be held in trust for expenses associated with the election of
the candidate or for expenses associated with holding office. The
act provides that an expenditure to seek office is within the lawful
execution of this trust if it is reasonably related to a political
purpose and an expenditure associated with holding office is within
the lawful execution of this trust if it is reasonably related to a
legislative or governmental purpose. Expenditures which
that confer a substantial personal benefit must
be directly related to a political, legislative, or governmental
purpose. The act authorizes the use of campaign funds to make
donations or loans to bona fide charitable, educational, civic,
religious, or similar tax-exempt nonprofit organizations. The act
imposes additional limitations on certain expenditures, including
those relating to automotive expenses, travel expenses, tickets for
entertainment or sporting events, personal gifts, and real property
expenses.
The bill would prohibit an elected officer or a committee
controlled by the elected officer from making an expenditure of
campaign funds to a business entity or nonprofit
organization owned or controlled by the officer, any other elected
officer who serves on the same elective body, or family members, as
defined, of elective elected officers
serving on that elective body, as specified.
This bill would also limit the expenditure of campaign funds for
other purposes, as specified, including country
club memberships, household food items, tuition payments, and
payments to a health club or recreational facility
personal vacations, payments for membership dues for a country club,
health club, or other recreational facility, tuition payments,
utility payments, vehicle use that is not directly related to an
election campaign, and certain gifts for specified family members of
a candidate, elected officer, or other individuals with the authority
to approve the expenditure of campaign funds held by a committee
.
(4) A violation of the act's provisions is punishable as a
misdemeanor. By expanding the scope of an existing crime, this bill
would impose a state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
(5) The Political Reform Act of 1974, an initiative measure,
provides that the Legislature may amend the act to further the act's
purposes upon a 2/3 vote of each house and compliance with specified
procedural requirements.
This bill would declare that it furthers the purposes of the act.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 82015 of the Government Code is amended to
read:
82015. (a) "Contribution" means a payment, a forgiveness of a
loan, a payment of a loan by a third party, or an enforceable promise
to make a payment , except to the extent that full and
adequate consideration is received, unless it is clear from the
surrounding circumstances that it is not made for political purposes.
(b) (1) A payment made at the behest of a committee ,
as defined in subdivision (a) of Section 82013 , is a
contribution to the committee unless full and adequate consideration
is received from the committee for making the payment.
(2) A payment made at the behest of a candidate is a contribution
to the candidate unless the criteria in either subparagraph (A) or
(B) are satisfied:
(A) Full and adequate consideration is received from the
candidate.
(B) It is clear from the surrounding circumstances that the
payment was made for purposes unrelated to his or her candidacy for
elective office. The following types of payments are presumed to be
for purposes unrelated to a candidate's candidacy for elective
office:
(i) A payment made principally for personal purposes, in which
case it may be considered a gift under the provisions of Section
82028. Payments that are otherwise subject to the limits of Section
86203 are presumed to be principally for personal purposes.
(ii) A payment made by a state, local, or federal governmental
agency or by a nonprofit organization that is exempt from taxation
under Section 501(c)(3) of the Internal Revenue Code.
(iii) A payment not covered by clause (i), made principally for
legislative, governmental, or charitable purposes, in which case it
is neither a gift nor a contribution. However, payments of this type
that are made at the behest of a candidate who is an elected officer
shall be reported within 30 days following the date on which the
payment or payments equal or exceed two thousand five hundred dollars
($2,500) in the aggregate from the same source in the same calendar
year in which they are made. The report shall be filed by the elected
officer with the elected officer's agency and shall be a public
record subject to inspection and copying pursuant to subdivision (a)
of Section 81008. The report shall contain the following information:
name of payor, address of payor, amount of the payment, date or
dates the payment or payments were made, the name and address of the
payee, a brief description of the goods or services provided or
purchased, if any, and a description of the specific purpose or event
for which the payment or payments were made. Once the
two-thousand-five-hundred-dollar ($2,500) aggregate threshold from a
single source has been reached for a calendar year, all payments for
the calendar year made by that source must
shall be disclosed within 30 days after the date the threshold
was reached or the payment was made, whichever occurs later. Within
30 days after receipt of the report, state agencies shall forward a
copy of these reports to the Commission, and local agencies shall
forward a copy of these reports to the officer with whom elected
officers of that agency file their campaign statements. Reports filed
with the Commission pursuant to this clause shall be posted on the
Commission's Internet Web site not later than 30 days after receipt
by the Commission.
(C) For purposes of subparagraph (B), a payment is made for
purposes related to a candidate's candidacy for elective office if
all or a portion of the payment is used for election-related
activities. For purposes of this subparagraph, "election-related
activities" shall include, but are not limited to, the following:
(i) Communications that contain express advocacy of the nomination
or election of the candidate or the defeat of his or her opponent.
(ii) Communications that contain reference to the candidate's
candidacy for elective office, the candidate's election campaign, or
the candidate's or his or her opponent's qualifications for elective
office.
(iii) Solicitation of contributions to the candidate or to third
persons for use in support of the candidate or in opposition to his
or her opponent.
(iv) Arranging, coordinating, developing, writing, distributing,
preparing, or planning of any communication or activity described in
clause (i), (ii), or (iii).
(v) Recruiting or coordinating campaign activities of campaign
volunteers on behalf of the candidate.
(vi) Preparing campaign budgets.
(vii) Preparing campaign finance disclosure statements.
(viii) Communications directed to voters or potential voters as
part of activities encouraging or assisting persons to vote ,
if the communication contains express advocacy of the
nomination or election of the candidate or the defeat of his or her
opponent.
(D) A contribution made at the behest of a candidate for a
different candidate or to a committee not controlled by the behesting
candidate is not a contribution to the behesting candidate.
(3) A payment made at the behest of a member of the Public
Utilities Commission, made principally for legislative, governmental,
or charitable purposes, is not a contribution. However, payments of
this type shall be reported within 30 days following the date on
which the payment or payments equal or exceed two thousand five
hundred dollars ($2,500) in the aggregate from the same source in the
same calendar year in which they are made. The report shall be filed
by the member with the Public Utilities Commission and shall be a
public record subject to inspection and copying pursuant to
subdivision (a) of Section 81008. The report shall contain the
following information: name of payor, address of payor, amount of the
payment, date or dates the payment or payments were made, the name
and address of the payee, a brief description of the goods or
services provided or purchased, if any, and a description of the
specific purpose or event for which the payment or payments were
made. Once the two-thousand-five-hundred-dollar ($2,500) aggregate
threshold from a single source has been reached for a calendar year,
all payments for the calendar year made by that source must
shall be disclosed within 30 days after the date
the threshold was reached or the payment was made, whichever occurs
later. Within 30 days after receipt of the report, the Public
Utilities Commission shall forward a copy of these reports to the
Fair Political Practices Commission. Reports filed with the Fair
Political Practices Commission pursuant to this subparagraph
paragraph shall be posted on the Commission's
Internet Web site not later than 30 days after receipt by the
Commission.
(4) For purposes of this subdivision and subdivision (h), "made at
the behest of" means made under the control or at the direction of;
in cooperation, consultation, coordination, or concert with; at the
request or suggestion of; or with the express, prior consent of.
(c) "Contribution" includes the purchase of tickets for events
such as dinners, luncheons, rallies, and similar fundraising events;
the candidate's own money or property used on behalf of his or her
candidacy , other than personal funds of the candidate
used to pay either a filing fee for a declaration of candidacy or a
candidate statement prepared pursuant to Section 13307 of the
Elections Code; the granting of discounts or rebates not extended to
the public generally or the granting of discounts or rebates by
television and radio stations and newspapers not extended on an equal
basis to all candidates for the same office; the payment of
compensation by any person for the personal services or expenses of
any other person , if the services are rendered or
expenses incurred on behalf of a candidate or committee without
payment of full and adequate consideration.
(d) "Contribution" further includes any transfer of anything of
value received by a committee from another committee, unless full and
adequate consideration is received.
(e) "Contribution" does not include amounts received pursuant to
an enforceable promise to the extent those amounts have been
previously reported as a contribution. However, the fact that those
amounts have been received shall be indicated in the appropriate
campaign statement.
(f) "Contribution" does not include a payment made by an occupant
of a home or office for costs related to any meeting or fundraising
event held in the occupant's home or office if the costs for the
meeting or fundraising event are five hundred dollars ($500) or less.
(g) Notwithstanding the foregoing definition of "contribution,"
the term does not include volunteer personal services or payments
made by any individual for his or her own travel expenses if the
payments are made voluntarily without any understanding or agreement
that they shall be, directly or indirectly, repaid to him or her.
(h) "Contribution" further includes the payment of public moneys
by a state or local governmental agency for a communication to the
public that satisfies both of the following:
(1) The communication expressly advocates the election or defeat
of a clearly identified candidate or the qualification, passage, or
defeat of a clearly identified measure, or, taken as a whole and in
context, unambiguously urges a particular result in an election.
(2) The communication is made at the behest of the affected
candidate or committee.
SEC. 2. Section 87106 is added to the Government Code, to read:
87106. (a) An elected officer shall not request that a payment be
made, and a person shall not make a payment, at the behest of the
elected officer, as described in Section 82015, to a
business entity or nonprofit organization that is owned or
controlled by that officer, any other elected officer who serves on
the same elective body, or a family member of any elective
elected officer who serves on that elective
body.
(b) For purposes of this section, as applied to a Member of the
Legislature, "same elective body" includes both houses of the
Legislature.
(c) For purposes of this section, a business entity or
nonprofit organization is owned or controlled by an
elective elected officer or family
member of an elected officer if either of the following conditions is
satisfied:
(1) The elective elected officer or
family member of the elective elected
officer, or a member of that person's immediate family, has a direct
or indirect interest worth two thousand dollars ($2,000) or more in
the business entity or nonprofit organization.
(2) The elective elected officer or
family member of the elective elected
officer, or a member of that person's immediate family, is a
director, officer, partner, or trustee of, or holds any position of
management with, the business entity or nonprofit
organization.
(d) For purposes of this section, "family member of an elected
officer" means the spouse, child, sibling, or parent of an elected
officer.
(e) This section shall not apply to behested payments made to a
nonprofit organization that is formed for the purpose of coordinating
or performing disaster relief services.
SEC. 3. Section 89506 of the Government Code is amended to read:
89506. (a) Payments, advances, or reimbursements ,
for travel, including actual transportation and related
lodging and subsistence that is reasonably related to a legislative
or governmental purpose, or to an issue of state, national, or
international public policy, shall not exceed five thousand dollars
($5,000) in a calendar year from a single source, but are otherwise
not prohibited or limited by this chapter if either of the following
apply applies :
(1) The travel is in connection with a speech given by the elected
state officer, local elected officeholder, candidate for
elected elective state office or local
elected elective office, an individual specified
in Section 87200, member of a state board or commission, or
designated employee of a state or local government agency, the
lodging and subsistence expenses are limited to the day immediately
preceding, the day of, and the day immediately following the speech,
and the travel is within the United States.
(2) The travel is provided by a government, a governmental agency,
a foreign government, a governmental authority, a bona fide public
or private educational institution, as defined in Section 203 of the
Revenue and Taxation Code, a nonprofit organization that is exempt
from taxation under Section 501(c)(3) of the Internal Revenue Code,
or by a person domiciled outside the United States which
who substantially satisfies the requirements for
tax-exempt status under Section 501(c)(3) of the Internal Revenue
Code.
(b) Gifts of travel not described in subdivision (a) are subject
to the limits in Section 89503.
(c) Subdivision (a) applies only to travel that is reported on the
recipient's statement of economic interests.
(d) For purposes of this section, a gift of travel does not
include any of the following:
(1) Travel that is paid for from campaign funds, as permitted by
Article 4 (commencing with Section 89510), or that is a contribution.
(2) Travel that is provided by the agency of a local elected
officeholder, an elected state officer, member of a state board or
commission, an individual specified in Section 87200, or a designated
employee.
(3) Travel that is reasonably necessary in connection with a bona
fide business, trade, or profession and that satisfies the criteria
for federal income tax deduction for business expenses in Sections
162 and 274 of the Internal Revenue Code, unless the sole or
predominant activity of the business, trade, or profession is making
speeches.
(4) Travel that is excluded from the definition of a gift by any
other provision of this title.
(e) This section does not apply to payments, advances, or
reimbursements for travel and related lodging and subsistence
permitted or limited by Section 170.9 of the Code of Civil Procedure.
(f) (1) A nonprofit organization that makes a payment, advance, or
reimbursement for travel described in subdivision (a) shall disclose
to the Commission the name of the donors responsible for funding
that payment, advance or reimbursement. The disclosure of donor names
shall be limited to donors who knew or had reason to know that the
donation would be used for a payment, advance, or reimbursement for
travel described in subdivision (a).
(2) A donor knows or has reason to know that his or her donation
will be used in the manner described in paragraph (1) under any of
the following conditions:
(A) The donor directed the nonprofit organization to use the
donation to make a payment, advance, or reimbursement for travel
described in subdivision (a).
(B) The donor made the donation in response to a message or
solicitation for donations for the stated purpose of making a
payment, advance, or reimbursement for travel described in
subdivision (a).
(C) The nonprofit organization made a payment, advance, or
reimbursement for travel described in subdivision (a) in the current
calendar year or any of the immediately preceding four calendar
years. The nonprofit organization shall disclose donors identified
pursuant to this subparagraph only to the extent that donations made
pursuant to subparagraphs (A) and (B) are less than the amount of the
payment, advance, or reimbursement made by the organization. The
nonprofit organization shall not report a donor identified pursuant
to this subparagraph if the organization has evidence indicating that
the donor restricted or otherwise did not intend the donation to be
used for a payment, advance, or reimbursement for travel described in
subdivision (a).
SEC. 4. Section 89512.7 is added to the
Government Code, to read:
89512.7. Except as expressly authorized by this article,
expenditures for the following are prohibited as inconsistent with
the trust imposed by Section 89510:
(a) A home mortgage, rent, or utility payment.
(b) A clothing purchase.
(c) A noncampaign-related automobile expense.
(d) A country club membership.
(e) A vacation or other noncampaign-related travel payment.
(f) A household food item.
(g) A tuition payment.
(h) Admission to a sporting event, concert, theater, or other form
of entertainment not related to an election campaign.
(i) The dues, fees, and other payments to a health club or
recreational facility.
(j) A gift to a spouse, child, sibling, or parent of a candidate,
elected officer, or other individual with authority to approve the
expenditure of campaign funds held by a committee.
SEC. 4. Section 89513 of the Government
Code is amended to read:
89513. This section governs the use of campaign funds for the
specific expenditures set forth in this section. It is the intent of
the Legislature that this section shall guide the interpretation of
the standard imposed by Section 89512 as applied to other
expenditures not specifically set forth in this section.
(a) (1) Campaign funds shall not be used to pay or reimburse
the a candidate, the
elected officer, or any individual or individuals with authority to
approve the expenditure of campaign funds held by a committee, or
employees or staff of the committee or the elected officer's
governmental agency , for travel expenses and necessary
accommodations , except when these expenditures are
directly related to a political, legislative, or governmental
purpose.
(2) For the purposes of this section, payments
or reimbursements for travel and necessary accommodations shall be
considered as directly related to a political,
legislative, or governmental purpose if the payments would meet
standards similar to the standards of the Internal Revenue Service
pursuant to Sections 162 and 274 of the Internal Revenue Code for
deductions of travel expenses under the federal income tax law.
(3) For the purposes of this section, payments
or reimbursement for travel by the household of a candidate or
elected officer when traveling to the same destination in order to
accompany the candidate or elected officer shall be considered for
the same purpose as the candidate's or elected officer's travel.
(4) Whenever If campaign funds are
used to pay or reimburse a candidate, elected officer, his or her
representative, or a member of the candidate's household for travel
expenses and necessary accommodations, the expenditure shall be
reported as required by Section 84211.
(5) Whenever If campaign funds are
used to pay or reimburse for travel expenses and necessary
accommodations, any mileage credit that is earned or awarded pursuant
to an airline bonus mileage program shall be deemed personally
earned by or awarded to the individual traveler. Neither the earning
or awarding of mileage credit, nor the redeeming of credit for actual
travel, shall be subject to reporting pursuant to Section 84211.
(6) Campaign funds shall not be used to make a payment for a
personal vacation for a candidate; elected officer; immediate family
member of a candidate or elected officer; or an officer, director,
employee, or member of the staff of a candidate, elected officer, or
committee.
(b) (1) Campaign funds shall not be used to pay for or reimburse
the cost of professional services unless the services are directly
related to a political, legislative, or governmental purpose.
(2) Expenditures by a committee to pay for professional services
reasonably required by the committee to assist it in the performance
of its administrative functions are directly related to a political,
legislative, or governmental purpose.
(3) Campaign funds shall not be used to pay health-related
expenses for a candidate, elected officer, or any individual or
individuals with authority to approve the expenditure of campaign
funds held by a committee, or members of his or her household.
"Health-related expenses" includes, but is not limited to,
examinations by physicians, dentists, psychiatrists, psychologists,
or counselors, expenses for medications, treatments or medical
equipment, and expenses for hospitalization,
health club dues, and special dietary foods.
However, campaign funds may be used to pay employer costs of health
care benefits of a bona fide employee or independent contractor of
the committee.
(4) Campaign funds shall not be used to make a payment for
membership dues for a country club, health club, or other
recreational facility.
(5) Campaign funds shall not be used to make tuition payments.
(c) Campaign funds shall not be used to pay or reimburse fines,
penalties, judgments, or settlements, except those resulting from
either of the following:
(1) Parking citations incurred in the performance of an activity
that was directly related to a political, legislative, or
governmental purpose.
(2) Any other action for which payment of attorney's fees from
contributions would be permitted pursuant to this title.
(d) Campaign funds shall not be used for campaign,
business, or casual clothing except specialty clothing that is not
suitable for everyday use, including, but not limited to, formal
wear, if this attire is to be worn by the candidate or elected
officer and is directly related to a political, legislative, or
governmental purpose to purchase clothing to be worn
by a candidate or elected officer .
(e) (1) Except where otherwise prohibited by law, campaign funds
may be used to purchase or reimburse for the costs of purchase of
tickets to political fundraising events for the attendance of a
candidate, elected officer, or his or her immediate family, or an
officer, director, employee, or staff of the committee or the elected
officer's governmental agency.
(2) Campaign funds shall not be used to pay for or reimburse for
the costs of tickets for entertainment or sporting events
admission to a sporting event, concert, theater, or
other form of entertainment for the candidate, elected officer,
or members of his or her immediate family, or an officer, director,
employee, or staff of the committee, unless their attendance at the
event is directly related to a political, legislative, or
governmental purpose the election campaign of the
candidate or elected officer .
(3) The purchase of tickets for entertainment or sporting events
for the benefit of persons other than the candidate, elected officer,
or his or her immediate family are governed by subdivision (f).
(f) (1) Campaign funds shall not be used to make a gift to a
spouse, child, sibling, or parent of a candidate, elected officer, or
other individual with authority to approve the expenditure of
campaign funds held by a committee, except for a gift of nominal
value that is substantially similar to a gift made to other persons
and that is directly related to a political, legislative, or
governmental purpose. Campaign funds shall not be used to make
personal gifts to any other person not described in this
paragraph unless the gift is directly related to a political,
legislative, or governmental purpose. The refund of a campaign
contribution does not constitute the making of a gift.
(2) Nothing in this This section
shall does not prohibit the use of
campaign funds to reimburse or otherwise compensate a public employee
for services rendered to a candidate or committee while on vacation,
leave, or otherwise outside of compensated public time.
(3) An election victory celebration or similar campaign event, or
gifts with a total cumulative value of less than two hundred fifty
dollars ($250) in a single year made to an individual employee, a
committee worker, or an employee of the elected officer's agency, are
considered to be directly related to a political, legislative, or
governmental purpose. For purposes of this paragraph, a gift to a
member of a person's immediate family shall be deemed to be a gift to
that person.
(g) Campaign funds shall not be used to make loans other than to
organizations pursuant to Section 89515, or, unless otherwise
prohibited, to a candidate for elective office, political party, or
committee.
SEC. 5. Section 89515 of the Government Code is amended to read:
89515. Campaign funds may be used to make donations or loans to
bona fide charitable, educational, civic, religious, or similar
tax-exempt, nonprofit organizations, where if
no substantial part of the proceeds will have a material
financial effect on the candidate, campaign treasurer, or any
individual or individuals with authority to approve the expenditure
of campaign funds held by a committee, or member of his or her
immediate family, and where if the
donation or loan bears a reasonable relation to a political,
legislative, or governmental purpose, except as prohibited by Section
89515.5.
SEC. 6. Section 89515.5 is added to the Government Code, to read:
89515.5. (a) An expenditure of campaign funds by an elected
officer or committee controlled by the elective
elected officer to a business entity or
nonprofit organization that is owned or controlled by the
elective elected officer, any other elected
officer who serves on the same elective body, or a family member of
any elective elected officer who serves
on that body is deemed to serve the primary purpose of conferring a
personal financial benefit on the recipient and is prohibited as
being unrelated to a political, legislative, or governmental purpose
and inconsistent with the trust imposed by Section 89510.
(b) For purposes of this section, as applied to a Member of the
Legislature, "same elective body" includes both houses of the
Legislature.
(c) For purposes of this section, a business entity or
nonprofit organization is owned or controlled by an
elective elected officer or family
member of an elected officer if either of the following conditions is
satisfied:
(1) The elective elected officer or
family member of the elective elected
officer, or a member of that person's immediate family ,
has a direct or indirect interest worth two thousand dollars ($2,000)
or more in the business entity or nonprofit
organization.
(2) The elective elected officer or
family member of the elective elected
officer, or a member of that person's immediate family ,
is a director, officer, partner, or trustee of, or holds any position
of management with, the business entity or
nonprofit organization.
(d) For purposes of this section, "family member of an elected
officer" means the spouse, child, sibling, or parent of an elected
officer.
SEC. 7. Section 89516 of the Government
Code is amended to read:
89516. Notwithstanding Sections 89512 and 89513, this section
governs the use of campaign funds for vehicle expenses.
(a) Campaign funds shall not be used to purchase a vehicle unless
both of the following apply:
(1) Title to the vehicle is held by the committee and not the
candidate, elected officer, campaign treasurer, or any other
individual or individuals with authority to approve the expenditure
of campaign funds held by a committee, or a member of his or her
immediate family.
(2) The use of the vehicle is directly related to a
political, legislative, or governmental purpose an
election campaign .
(b) Campaign funds shall not be used to lease a vehicle unless
both of the following apply:
(1) The lessee is the committee, or a state or local government
agency , and not the candidate, elected officer, or a
member of his or her immediate family; or the lessor is a state or
local government agency.
(2) The use of the vehicle is directly related to a
political, legislative, or governmental purpose an
election campaign .
(c) Campaign funds may be used to pay for or reimburse the
operating costs, including, but not limited to, insurance,
maintenance, and repairs, for any vehicle for which campaign funds
may be spent pursuant to this section.
(d) Campaign funds may be used to reimburse a candidate, elected
officer, his or her immediate family, or any individual or
individuals with authority to approve the expenditure of campaign
funds held by a committee, or an employee or member of the staff of
the committee or of the elected officer's governmental agency, for
the use of his or her vehicle at the rate approved by the Internal
Revenue Service pursuant to Section 162 of the Internal Revenue Code
in connection with deductible mileage expenses under the federal
income tax law, if both of the following requirements are met:
(1) The vehicle use for which reimbursement is sought is directly
related to political, governmental, or legislative purposes
an election campaign .
(2) The specific purpose and mileage in connection with each
expenditure is documented in a manner approved by the Internal
Revenue Service in connection with deductible mileage expenses.
(e) For the purposes of this section, use of a vehicle is
considered to be directly related to a political,
legislative, or governmental purpose an
election campaign as long as its use for other purposes is only
incidental to its use for political, legislative, or
governmental purposes an election campaign .
SEC. 8. Section 89517 of the Government
Code is amended to read:
89517. (a) Campaign funds shall not be used for payment or
reimbursement for the lease of real property , for a utility
bill for real property , or for the purchase, lease,
or refurbishment of any appliance or equipment, where the lessee or
sublessor is, or the legal title resides in , in whole or
in part, in a candidate, elected officer, campaign
treasurer, or any individual or individuals with authority to
approve the expenditure of campaign funds, or member of his or her
immediate family.
(b) Campaign funds shall not be used to purchase real property.
Except as prohibited by subdivision (a), campaign funds may be used
to lease real property for up to one year at a time where
if the use of that property is directly related
to political, legislative, or governmental purposes and the
lessee or sublessor is not, or the legal title does not reside in, in
whole or in part, a candidate, elected officer, campaign treasurer,
or any individual or individuals with authority to approve the
expenditure of campaign funds, or a member of his or her immediate
family .
(c) For the purposes of this section, real property, appliance, or
equipment is considered to be directly related to a political,
legislative, or governmental purpose as long as
if its use for other purposes is only incidental to its
use for political, legislative, or governmental purposes and the
lessee or sublessor of the real property is not, or the legal title
for the real property does not reside in, in whole or in part, a
candidate, elected officer, campaign treasurer, or any individual or
individuals with authority to approve the expenditure of campaign
funds, or a member of his or her immediate family .
SEC. 7. SEC. 9. No reimbursement is
required by this act pursuant to Section 6 of Article XIII B of the
California Constitution because the only costs that may be incurred
by a local agency or school district will be incurred because this
act creates a new crime or infraction, eliminates a crime or
infraction, or changes the penalty for a crime or infraction, within
the meaning of Section 17556 of the Government Code, or changes the
definition of a crime within the meaning of Section 6 of Article XIII
B of the California Constitution.
SEC. 8. SEC. 10. 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.