BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 739
                                                                  Page  1

          Date of Hearing:   August 19, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                   SB 739 (Strickland) - As Amended:  May 20, 2009 

          Policy Committee:                              ElectionsVote:7-0

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill amends the Political Reform Act (PRA) to prohibit the  
          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 elected officer or candidate.

           FISCAL EFFECT  

          1)Likely minor absorbable costs to the Fair Political Practices  
            Commission and/or the Attorney General, offset to some extent  
            by revenues from civil penalties or fines.

          2)Likely minor nonreimbursable cost to local governments for  
            enforcement, offset to some extent by fine revenues.

           COMMENTS 

           Purpose  .  Candidates and officeholders both within and outside  
          of California 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.  The author of this bill found himself in such a  
          situation in 2004.  

          Under California's community property laws, any income earned by  
          a married person while living with his or her spouse generally  
          is considered to be community property, which is jointly held by  
          both spouses.  As a result, when a candidate pays his or her  
          spouse for professional services rendered to the candidate's  
          campaign committee, the campaign committee's payment indirectly  








                                                                  SB 739
                                                                  Page  2

          becomes the candidate's personal property.  These arrangements  
          are controversial because they allow candidates to personally  
          benefit from the contributions that their campaigns seek and  
          accept.

          SB 739 therefore prohibits a spouse or domestic partner of an  
          elected official or candidate from receiving compensation for  
          fundraising services for the benefit of the elected official or  
          candidate.  

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081