BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1666
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          Date of Hearing:   April 1, 2014

                  ASSEMBLY COMMITTEE ON ELECTIONS AND REDISTRICTING
                                  Paul Fong, Chair
                 AB 1666 (Garcia) - As Introduced:  February 12, 2014
          
          SUBJECT  :   Political Reform Act of 1974: campaign funds: bribery  
          fines.

           SUMMARY  :   Increases existing restitution fines for the crime of  
          bribery and prohibits the use of campaign funds to pay for such  
          fines.  Specifically,  this bill  :  

          1)Increases the restitution fines for any member of the  
            Legislature or any member of the legislative body of a city,  
            county, city and county, school district, or other special  
            district who asks for or receives a bribe, as specified, in  
            exchange for influence over his or her official action as  
            follows:

             a)   Doubles restitution fines, in cases where no bribe has  
               been actually received, from a minimum of two thousand  
               dollars ($2,000), and a maximum of ten thousand dollars  
               ($10,000), to instead a minimum of four thousand dollars  
               ($4,000), and maximum of twenty thousand dollars ($20,000);  
               and,

             b)   Doubles restitution fines, in cases in which a bribe was  
               actually received, from a minimum of the actual amount of  
               the bribe received or two thousand dollars ($2,000),  
               whichever is greater, and a maximum of double the amount of  
               any bribe received or ten thousand dollars ($10,000), or  
               whichever is greater, to instead a minimum amount of the  
               bribe received or four thousand dollars ($4,000), whichever  
               is greater, and a maximum of not more than double the  
               amount of any bribe received or twenty thousand dollars  
               ($20,000), whichever is greater.

          2)Requires the Fair Political Practices Commission (FPPC) to  
            adjust the fine amounts specified above in January of every  
            odd-numbered year to reflect any increase or decrease in the  
            Consumer Price Index.  Requires the fine amounts to be rounded  
            to the nearest ten dollars ($10).

          3)Prohibits campaign funds from being used to pay a restitution  








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            fine as described above.

           EXISTING LAW  :

          1)Creates the FPPC, and makes it responsible for the impartial,  
            effective administration and implementation of the Political  
            Reform Act (PRA).

          2)Prohibits the use of campaign funds for an expenditure that  
            confers a substantial personal benefit on any individual or  
            individuals with authority to approve the expenditure unless  
            the expenditure is directly related to a political,  
            legislative, or governmental purpose.

          3)Prohibits the use of campaign funds to compensate a candidate  
            or elected officer for the performance of political,  
            legislative, or governmental activities, except for  
            reimbursement of out-of-pocket expenses incurred for  
            political, legislative, or governmental purposes.

          4)Provides that any person who knowingly or willfully violates  
            the PRA is guilty of a misdemeanor. 

          5)Provides that every Member of either house of the Legislature,  
            or any member of the legislative body of a city, county, city  
            and county, school district, or other special district, who  
            asks, receives, or agrees to receive, any bribe, upon any  
            understanding that his or her official vote, opinion,  
            judgment, or action shall be influenced thereby, or shall  
            give, in any particular manner, or upon any particular side of  
            any question or matter upon which he or she may be required to  
            act in his or her official capacity, or gives, or offers or  
            promises to give, any official vote in consideration that  
            another Member of the Legislature, or another member of the  
            legislative body of a city, county, city and county, school  
            district, or other special district shall give this vote  
            either upon the same or another question, is punishable by  
            imprisonment in the state prison for two, three, or four years  
            and, in cases in which no bribe has been actually received, by  
            a restitution fine of not less than two thousand dollars  
            ($2,000) or not more than ten thousand dollars ($10,000) or,  
            in cases in which a bribe was actually received, by a  
            restitution fine of at least the actual amount of the bribe  
            received or two thousand dollars ($2,000), whichever is  
            greater, or any larger amount of not more than double the  








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            amount of any bribe received or ten thousand dollars  
            ($10,000), whichever is greater.  Requires the court, in  
            imposing a fine under this section, to consider the  
            defendant's ability to pay the fine. 

           FISCAL EFFECT  :   Unknown.  State-mandated local program;  
          contains a crimes and infractions disclaimer.

           COMMENTS :   

           1)Purpose of the Bill  :  According to the author:  

               AB 1666 strengthens penalties associated with bribes by  
               increasing the fines imposed and by ensuring those  
               convicted must pay penalties out of personal funds, not out  
               of accounts meant for running for office.

           2)Bribery Fines  :  In 2001, the Governor signed and the  
            Legislature passed SB 923 (McPherson), Chapter 282, Statutes  
            of 2001, which increased the fines for specified bribery  
            offenses involving public officials.  According to the  
            author's background material provided to the committee, these  
            fine thresholds have not been adjusted since they were  
            implemented in 2001.  This bill doubles the fines in a case  
            where no bribe has actually been received from a fine of not  
            less than four thousand dollars ($4,000), instead of two  
            thousand dollars ($2,000), to not more than twenty thousand  
            dollars ($20,000), instead of ten thousand dollars ($10,000).   
            In addition, the bill makes corresponding changes in the case  
            where the defendant actually received a bribe, and doubles the  
            minimum fine amount from the greater of the amount of the  
            bribe received or two thousand dollars ($2,000) to four  
            thousand dollars ($4,000), as specified, and doubles the  
            maximum fine from the greater of double the amount of the  
            bribe received or ten thousand dollars ($10,000) to twenty  
            thousand dollars ($20,000), as specified.  

          Furthermore, the author contends that if a member of the  
            Legislature is convicted of one of the bribe scenarios  
            described above, nothing in current law prohibits use of  
            campaign funds to pay a restitution fine.  In other words,  
            restitution fines imposed from a bribery offense could be paid  
            out of the officeholder's campaign funds, instead of their  
            personal funds.  This bill strengthens the penalties  
            associated with bribery offenses and prohibits campaign funds  








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            from being used to pay a restitution fine as described above.   
             

           3)Fair Political Practices Commission  :  The FPPC is responsible  
            for enforcing state laws governing political campaigns,  
            fundraising, lobbying, and conflicts of interest for elected  
            officials.  Under existing law, the FPPC is required to adjust  
            contribution and voluntary expenditure limits within the PRA  
            in January of every odd-numbered year to reflect any increase  
            or decrease in the Consumer Price Index.  

          This bill adds a new duty to the FPPC by requiring it to adjust  
            fine amounts specified in the Penal Code for bribery offenses  
            involving public officials.  The FPPC does not, however, have  
            jurisdiction over bribery crimes, nor does it have any  
            authority with respect to any violations of the Penal Code.   
            The committee may wish to consider whether it is prudent to  
            require the FPPC to adjust fines for crimes it has no  
            authority to enforce.  

          Additionally, this bill provides for the fines for bribery  
            convictions to be adjusted for any changes in inflation, but  
            does not similarly provide for automatic adjustments for fines  
            imposed for convictions of other crimes.  If it is a desirable  
            policy to adjust fines to reflect inflation, then it is  
            unclear why that policy should not be in place for  all  fine  
            amounts.   The committee may wish to consider amending the  
            bill to remove the requirement for fines to be adjusted.   

           4)Related Legislation  :  AB 1692 (Garcia), which is also being  
            heard in this committee today, limits the use of campaign  
            funds and legal defense funds to pay fines and penalties that  
            are imposed for an improper personal use of campaign funds, as  
            specified.  

           5)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 proposition and require a  
            two-thirds vote of each house of the Legislature.  

           REGISTERED SUPPORT / OPPOSITION  :   








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           Support 
           
          Secretary of State Debra Bowen

           Opposition 
           
          None on file.
           
          Analysis Prepared by  :    Nichole Becker / E. & R. / (916)  
          319-2094