AB 1692, as amended, Garcia. Political Reform Act of 1974.
(1) The Political Reform Act of 1974 provides for the comprehensive regulation of campaign financing, including requiring the reporting of campaign contributions and expenditures, as defined, and imposing other reporting and recordkeeping requirements on campaign committees, as defined. The Fair Political Practices Commission administers and enforces the act. A violation of the act’s provisions is punishable as a misdemeanor.
The act authorizes certain candidates and elective officers to establish a separate legal defense fund campaign account to defray attorney’s fees and other related legal costs incurred in the defense of the candidate or elective officer who is subject to one or more civil, criminal, or administrative proceedings arising directly out of the conduct of an election campaign, the electoral process, or the performance of the officers’ governmental activities and duties, as specified.
This bill would define the phrase “attorney’s fees and other related legal costs” for purposes of legal defense funds to include only attorney’s fees and other legal costs related to the defense of the candidate or officer and administrative costs directly related to compliance with the act. The definition would exclude certain other costs, including payment or reimbursement for a fine, penalty, judgment or settlement, except as specified.
The act provides that all contributions deposited into a campaign account are deemed to be held in trust for expenses associated with the election of the candidate or for expenses associated with holding offices. The act provides that an expenditure to seek or hold office is within the lawful execution of this trust if it is reasonably related to a political, legislative, or governmental purpose. Expenditures that confer a substantial personal benefit must be directly related to a political, legislative, or governmental purpose. The act prohibits the use of campaign funds for fines, penalties, judgments, or settlements, except for certain parking fines and for actions for which attorney’s fees may be paid with contributions under the act.
The bill would prohibit an expenditure of campaign funds for a fine, penalty, judgment, or settlement relating to an expenditure of campaign funds that resulted in a personal benefit to the candidate or officer if it is determined that the expenditure was not reasonably related to a political, legislative, or governmental purpose. The bill would also prohibit an expenditure of campaign funds for a fine, penalty, judgment, or settlement relating to an expenditure of campaign funds that resulted in a substantial personal benefit to the candidate or officer if it is determined that the expenditure was not directly related to a political, legislative, or governmental purpose. The bill would also apply the above-described definition for “attorney’s fees and other costs” for purposes of the article concerning campaign fund expenditures.
begin insert(2) This bill would incorporate additional changes to Section 89513 of the Government Code, proposed by AB 1666 and SB 831, that would become operative only if this bill and either or both of those bills are chaptered and become effective on or before January 1, 2015, and this bill is chaptered last.
end insert(2)
end deletebegin insert(3)end insert 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.
(3)
end deletebegin insert(4)end insert 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 85304 of the Government Code is
2amended to read:
(a) A candidate for elective state office or an elected
4state officer may establish a separate account to defray attorney’s
5fees and other related legal costs incurred for the candidate’s or
6officer’s legal defense if the candidate or officer is subject to one
7or more civil or criminal proceedings or administrative proceedings
8arising directly out of the conduct of an election campaign, the
9electoral process, or the performance of the officer’s governmental
10activities and duties. These funds may be used only to defray those
11attorney fees and other related legal costs.
12(b) A candidate may receive contributions to this account that
13are not subject to the
contribution limits set forth in this article.
14However, all contributions shall be reported in a manner prescribed
15by the commission.
16(c) Once the legal dispute is resolved, the candidate shall dispose
17of any funds remaining after all expenses associated with the
18dispute are discharged for one or more of the purposes set forth in
19paragraphs (1) to (5), inclusive, of subdivision (b) of Section
2089519.
21(d) (1) For purposes of this section and Section 85304.5,
22“attorney’s fees and other related legal costs” includes only the
23following:
24(A) Attorney’s fees and other legal costs related to the defense
25of the candidate or officer.
26(B) Administrative costs directly related to compliance with the
27requirements of this title.
P4 1(2) “Attorney’s fees and other related legal costs” does not
2include expenses for fundraising, media or political consulting
3fees, mass mailing or other advertising, or, except as expressly
4authorized by subdivision (c) of Section 89513, a payment or
5reimbursement for a fine, penalty, judgment or settlement, or a
6payment to return or disgorge contributions made to any other
7committee controlled by the candidate or officer.
Section 85304.5 of the Government Code is amended
9to read:
(a) A candidate for elective office other than an
11elective state office or an elected officer other than an elected state
12officer may establish a separate account pursuant to subdivision
13(a) of Section 85304 and may use these funds only to defray
14attorney’s fees and other related legal costs.
15(b) A candidate for an elective office other than an elective state
16office may receive contributions to the separate account subject
17to any limitations provided by local ordinance. However, all
18contributions to these separate accounts shall be reported in a
19manner prescribed by the commission.
20(c) Once
the legal dispute is resolved, the candidate or elected
21officer shall dispose of any funds remaining in the separate
22accounts after all expenses associated with the dispute are
23discharged for one or more of the purposes set forth in paragraphs
24(1) to (5), inclusive, of subdivision (b) of Section 89519.
25(d) For purposes of this section, “attorney’s fees and other
26related legal costs” has the same meaning as in Section 85304.
Section 89511 of the Government Code is amended
28to read:
(a) This article applies to campaign funds held by
30candidates for elective office, elected officers, controlled
31committees, ballot measure committees, committees opposed to
32a candidate or measure, and any committee which qualifies as a
33committee pursuant to subdivision (a) of Section 82013.
34(b) (1) For purposes of this chapter, “campaign funds” includes
35any contributions, cash, cash equivalents, and other assets received
36or possessed by a committee as defined by subdivision (a) of
37Section 82013.
38(2) For purposes of this chapter, “committee” means a controlled
39committee,
ballot measure committee, committee opposed to a
P5 1candidate or measure, and any committee which qualifies as a
2committee pursuant to subdivision (a) of Section 82013.
3(3) For purposes of this chapter, “substantial personal benefit”
4means an expenditure of campaign funds which results in a direct
5personal benefit with a value of more than two hundred dollars
6($200) to a candidate, elected officer, or any individual or
7individuals with authority to approve the expenditure of campaign
8funds held by a committee.
9(4) For purposes of this article, “household” includes the
10candidate’s or elected officer’s spouse, dependent children, and
11parents who reside with the candidate or elected officer.
12(5) (A) For
purposes of this article, “attorney’s fees and other
13costs” includes only the following:
14(i) Attorney’s fees and other legal costs related to the defense
15of the candidate or officer.
16(ii) Administrative costs directly related to compliance with the
17requirements of this title.
18(B) “Attorney’s fees and other costs” does not include expenses
19for fundraising, media or political consulting fees, mass mailing
20or other advertising, or, except as expressly authorized by
21subdivision (c) of Section 89513, a payment or reimbursement for
22a fine, penalty, judgment or settlement, or a payment to return or
23disgorge contributions made to any other committee controlled by
24the candidate or officer.
Section 89512 of the Government Code is amended
26to read:
(a) An expenditure to seek office is within the lawful
28execution of the trust imposed by Section 89510 if it is reasonably
29related to a political purpose. An expenditure associated with
30holding office is within the lawful execution of the trust imposed
31by Section 89510 if it is reasonably related to a legislative or
32governmental purpose. Expenditures which confer a substantial
33personal benefit shall be directly related to a political, legislative,
34or governmental purpose.
35(b) Except as expressly authorized by this article, an expenditure
36
for a fine, penalty, judgment, or settlement is not within the lawful
37execution of the trust imposed by Section 89510.
Section 89513 of the Government Code is amended
39to read:
This section governs the use of campaign funds for the
2specific expenditures set forth in this section. It is the intent of the
3Legislature that this section shall guide the interpretation of the
4standard imposed by Section 89512 as applied to other expenditures
5not specifically set forth in this section.
6(a) (1) Campaign funds shall not be used to pay or reimburse
7the candidate, the elected officer, or any individual or individuals
8with authority to approve the expenditure of campaign funds held
9by a committee, or employees or staff of the committee or the
10elected officer’s governmental agency for travel expenses and
11necessary accommodations
except when these expenditures are
12directly related to a political, legislative, or governmental purpose.
13(2) For the purposes of this section, payments or reimbursements
14for travel and necessary accommodations shall be considered as
15directly related to a political, legislative, or governmental purpose
16if the payments would meet standards similar to the standards of
17the Internal Revenue Service pursuant to Sections 162 and 274 of
18the Internal Revenue Code for deductions of travel expenses under
19the federal income tax law.
20(3) For the purposes of this section, payments or reimbursement
21for travel by the household of a candidate or elected officer when
22traveling to the same destination in order to accompany the
23candidate or elected officer shall be considered for the same
24purpose as the
candidate’s or elected officer’s travel.
25(4) Whenever campaign funds are used to pay or reimburse a
26candidate, elected officer, his or her representative, or a member
27of the candidate’s household for travel expenses and necessary
28accommodations, the expenditure shall be reported as required by
29Section 84211.
30(5) Whenever campaign funds are used to pay or reimburse for
31travel expenses and necessary accommodations, any mileage credit
32that is earned or awarded pursuant to an airline bonus mileage
33program shall be deemed personally earned by or awarded to the
34individual traveler. Neither the earning or awarding of mileage
35credit, nor the redeeming of credit for actual travel, shall be subject
36to reporting pursuant to Section 84211.
37(b) (1) Campaign funds shall not be used to pay for or reimburse
38the cost of professional services unless the services are directly
39related to a political, legislative, or governmental purpose.
P7 1(2) Expenditures by a committee to pay for professional services
2reasonably required by the committee to assist it in the performance
3of its administrative functions are directly related to a political,
4legislative, or governmental purpose.
5(3) Campaign funds shall not be used to pay health-related
6expenses for a candidate, elected officer, or any individual or
7individuals with authority to approve the expenditure of campaign
8funds held by a committee, or members of his or her household.
9“Health-related expenses” includes, but is not limited to,
10examinations by
physicians, dentists, psychiatrists, psychologists,
11or counselors, expenses for medications, treatments or medical
12equipment, and expenses for hospitalization, health club dues, and
13special dietary foods. However, campaign funds may be used to
14pay employer costs of health care benefits of a bona fide employee
15or independent contractor of the committee.
16(c) Campaign funds shall not be used to pay or reimburse fines,
17penalties, judgments, or settlements, except those resulting from
18either of the following:
19(1) Parking citations incurred in the performance of an activity
20that was directly related to a political, legislative, or governmental
21purpose.
22(2) Any other action for which payment of attorney’s fees from
23contributions
would be permitted pursuant to this title. However,
24
campaign funds shall not be used to pay a fine, penalty, judgment,
25or settlement relating to an expenditure of campaign funds that
26resulted in either of the following:
27(A) A personal benefit to the candidate or officer if it is
28determined that the expenditure was not reasonably related to a
29political, legislative, or governmental purpose.
30(B) A substantial personal benefit to the candidate or officer if
31it is determined that the expenditure was not directly related to a
32political, legislative, or governmental, purpose.
33(d) Campaign funds shall not be used for campaign, business,
34or casual clothing except specialty clothing that is not suitable for
35everyday use, including, but not limited to, formal wear,
if this
36attire is to be worn by the candidate or elected officer and is directly
37related to a political, legislative, or governmental purpose.
38(e) (1) Except where otherwise prohibited by law, campaign
39funds may be used to purchase or reimburse for the costs of
40purchase of tickets to political fundraising events for the attendance
P8 1of a candidate, elected officer, or his or her immediate family, or
2an officer, director, employee, or staff of the committee or the
3elected officer’s governmental agency.
4(2) Campaign funds shall not be used to pay for or reimburse
5for the costs of tickets for entertainment or sporting events for the
6candidate, elected officer, or members of his or her immediate
7family, or an officer, director, employee, or staff of the committee,
8unless
their attendance at the event is directly related to a political,
9legislative, or governmental purpose.
10(3) The purchase of tickets for entertainment or sporting events
11for the benefit of persons other than the candidate, elected officer,
12or his or her immediate family are governed by subdivision (f).
13(f) (1) Campaign funds shall not be used to make personal gifts
14unless the gift is directly related to a political, legislative, or
15governmental purpose. The refund of a campaign contribution
16does not constitute the making of a gift.
17(2) Nothing in this section shall prohibit the use of campaign
18funds to reimburse or otherwise compensate a public employee
19for services rendered to a candidate or committee while on
20vacation,
leave, or otherwise outside of compensated public time.
21(3) An election victory celebration or similar campaign event,
22or gifts with a total cumulative value of less than two hundred fifty
23dollars ($250) in a single year made to an individual employee, a
24committee worker, or an employee of the elected officer’s agency,
25are considered to be directly related to a political, legislative, or
26governmental purpose. For purposes of this paragraph, a gift to a
27member of a person’s immediate family shall be deemed to be a
28gift to that person.
29(g) Campaign funds shall not be used to make loans other than
30to organizations pursuant to Section 89515, or, unless otherwise
31prohibited, to a candidate for elective office, political party, or
32committee.
begin insertSection 89513 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
34to read:end insert
This section governs the use of campaign funds for the
36specific expenditures set forth in this section. It is the intent of the
37Legislature that this section shall guide the interpretation of the
38standard imposed by Section 89512 as applied to other expenditures
39not specifically set forth in this section.
P9 1(a) (1) Campaign funds shall not be used to pay or reimburse
2the candidate, the elected officer, or any individual or individuals
3with authority to approve the expenditure of campaign funds held
4by a committee, or employees or staff of the committee or the
5elected officer’s governmental agency for travel expenses and
6necessary accommodations except when these expenditures are
7directly related to a political, legislative,
or governmental purpose.
8(2) For the purposes of this section, payments or reimbursements
9for travel and necessary accommodations shall be considered as
10directly related to a political, legislative, or governmental purpose
11if the payments would meet standards similar to the standards of
12the Internal Revenue Service pursuant to Sections 162 and 274 of
13the Internal Revenue Code for deductions of travel expenses under
14the federal income tax law.
15(3) For the purposes of this section, payments or reimbursement
16for travel by the household of a candidate or elected officer when
17traveling to the same destination in order to accompany the
18candidate or elected officer shall be considered for the same
19purpose as the candidate’s or elected officer’s travel.
20(4) Whenever campaign funds are used to pay or reimburse a
21candidate,
elected officer, his or her representative, or a member
22of the candidate’s household for travel expenses and necessary
23accommodations, the expenditure shall be reported as required by
24Section 84211.
25(5) Whenever campaign funds are used to pay or reimburse for
26travel expenses and necessary accommodations, any mileage credit
27that is earned or awarded pursuant to an airline bonus mileage
28program shall be deemed personally earned by or awarded to the
29individual traveler. Neither the earning or awarding of mileage
30credit, nor the redeeming of credit for actual travel, shall be subject
31to reporting pursuant to Section 84211.
32(b) (1) Campaign funds shall not be used to pay for or reimburse
33the cost of professional services unless the services are directly
34related to a political, legislative, or governmental purpose.
35(2) Expenditures by a committee to pay for professional services
36reasonably required by the committee to assist it in the performance
37of its administrative functions are directly related to a political,
38legislative, or governmental purpose.
39(3) Campaign funds shall not be used to pay health-related
40expenses for a candidate, elected officer, or any individual or
P10 1individuals with authority to approve the expenditure of campaign
2funds held by a committee, or members of his or her household.
3“Health-related expenses” includes, but is not limited to,
4examinations by physicians, dentists, psychiatrists, psychologists,
5or counselors, expenses for medications, treatments or medical
6equipment, and expenses for hospitalization, health club dues, and
7special dietary foods. However, campaign funds may be used to
8pay employer costs of health care benefits of a bona fide employee
9or independent
contractor of the committee.
10(c) begin insert(1)end insertbegin insert end insert Campaign funds shall not be used to pay or reimburse
11fines, penalties, judgments, or settlements, except those resulting
12from either of the following:
13(1)
end delete
14begin insert(A)end insert Parking citations incurred in the performance of an activity
15that was directly related to a political, legislative, or governmental
16purpose.
17(2)
end delete
18begin insert(B)end insert Any other action for which payment of attorney’s fees from
19contributions would be permitted pursuant to this title.begin insert However, end insert
20begin insertcampaign funds shall not be used to pay a fine, penalty, judgment,
21or settlement relating to an expenditure of campaign funds that
22resulted in either of the following:end insert
23(i) A personal benefit to the candidate or officer if it is
24determined that the expenditure was not reasonably related to a
25political, legislative, or governmental purpose.
26(ii) A substantial personal benefit to the candidate or officer if
27it is determined that the expenditure was not directly related to a
28political, legislative, or governmental purpose.
29(2) Campaign funds shall not be used to pay a restitution fine
30imposed under Section 86 of the Penal Code.
31(d) Campaign funds shall not be used for campaign, business,
32or casual clothing except specialty clothing that is not suitable for
33everyday use, including, but not limited to, formal wear, if this
34attire is to be worn by the candidate or elected officer and is directly
35related to a political, legislative, or governmental purpose.
36(e) (1) Except where otherwise prohibited by law, campaign
37funds may be used to purchase or reimburse for the costs of
38purchase of tickets to political fundraising events for the attendance
39of a candidate, elected officer, or his or her immediate family, or
P11 1an officer, director, employee, or staff of the committee or the
2elected officer’s governmental agency.
3(2) Campaign funds shall not be used to pay for or reimburse
4for the costs of tickets for entertainment or sporting events for the
5candidate, elected officer, or members of his or her immediate
6family, or an officer, director, employee, or staff of the committee,
7unless their attendance at the event is directly related to a political,
8legislative, or governmental purpose.
9(3) The purchase of tickets for entertainment or sporting events
10for the benefit of persons other than the candidate,
elected officer,
11or his or her immediate family are governed by subdivision (f).
12(f) (1) Campaign funds shall not be used to make personal gifts
13unless the gift is directly related to a political, legislative, or
14governmental purpose. The refund of a campaign contribution
15does not constitute the making of a gift.
16(2) Nothing in this section shall prohibit the use of campaign
17funds to reimburse or otherwise compensate a public employee
18for services rendered to a candidate or committee while on
19vacation, leave, or otherwise outside of compensated public time.
20(3) An election victory celebration or similar campaign event,
21or gifts with a total cumulative value of less than two hundred fifty
22dollars ($250) in a single year made to an individual employee, a
23committee worker, or an employee of the
elected officer’s agency,
24are considered to be directly related to a political, legislative, or
25governmental purpose. For purposes of this paragraph, a gift to a
26member of a person’s immediate family shall be deemed to be a
27gift to that person.
28(g) Campaign funds shall not be used to make loans other than
29to organizations pursuant to Section 89515, or, unless otherwise
30prohibited, to a candidate for elective office, political party, or
31committee.
begin insertSection 89513 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
33to read:end insert
This section governs the use of campaign funds for the
35specific expenditures set forth in this section. It is the intent of the
36Legislature that this sectionbegin delete shallend delete guide the interpretation of the
37standard imposed by Section 89512 as applied to other expenditures
38not specifically set forth in this section.
39(a) (1) Campaign funds shall not be used to pay or reimburse
40begin delete theend deletebegin insert aend insert candidate,begin delete theend delete
elected officer, or any individual or individuals
P12 1with authority to approve the expenditure of campaign funds held
2by a committee, or employees or staff of the committee or the
3elected officer’s governmentalbegin delete agencyend deletebegin insert agency,end insert for travel expenses
4and necessarybegin delete accommodationsend deletebegin insert accommodations,end insert except when
5these expenditures are directly related to a political, legislative, or
6governmental purpose.
7(2) Forbegin delete theend delete purposes of this section, payments or reimbursements
8for travel
and necessary accommodations shall be considered as
9directly related to a political, legislative, or governmental purpose
10if the payments would meet standards similar to the standards of
11the Internal Revenue Service pursuant to Sections 162 and 274 of
12the Internal Revenue Code for deductions of travel expenses under
13the federal income tax law.
14(3) Forbegin delete theend delete purposes of this section, payments or reimbursement
15for travel by the household of a candidate or elected officer when
16traveling to the same destination in order to accompany the
17candidate or elected officer shall be considered for the same
18purpose as the candidate’s or elected officer’s travel.
19(4) begin deleteWhenever end deletebegin insertIf
end insertcampaign funds are used to pay or reimburse
20a candidate, elected officer, his or her representative, or a member
21of the candidate’s household for travel expenses and necessary
22accommodations, the expenditure shall be reported as required by
23Section 84211.
24(5) begin deleteWhenever end deletebegin insertIf end insertcampaign funds are used to pay or reimburse
25for travel expenses and necessary accommodations, any mileage
26credit that is earned or awarded pursuant to an airline bonus
27mileage program shall be deemed personally earned by or awarded
28to the individual traveler. Neither the earning or awarding of
29mileage credit, nor the redeeming of credit for actual travel, shall
30be subject to reporting pursuant to Section 84211.
31(6) Campaign funds shall not be used to make a payment for a
32personal vacation for a candidate; elected officer; immediate
33family member of a candidate or elected officer; or an officer,
34director, employee, or member of the staff of a candidate, elected
35officer, or committee.
36(b) (1) Campaign funds shall not be used to pay for or reimburse
37the cost of professional services unless the services are directly
38related to a political, legislative, or governmental purpose.
39(2) Expenditures by a committee to pay for professional services
40reasonably required by the committee to assist it in the performance
P13 1of its administrative functions are directly related to a political,
2legislative, or governmental purpose.
3(3) Campaign funds shall not be used to pay health-related
4expenses for a candidate, elected officer, or any individual or
5individuals with authority to approve the expenditure of campaign
6funds held by a committee, or members of his or her household.
7“Health-related expenses” includes, but is not limited to,
8examinations by physicians, dentists, psychiatrists, psychologists,
9orbegin delete counselors,end deletebegin insert counselors;end insert expenses for medications,begin delete treatmentsend delete
10begin insert treatments,end insert or medicalbegin delete equipment,end deletebegin insert
equipment;end insert and expenses for
11begin delete hospitalization, health club dues,end deletebegin insert hospitalizationend insert
and special dietary
12foods. However, campaign funds may be used to pay employer
13costs of health care benefits of a bona fide employee or independent
14contractor of the committee.
15(4) Campaign funds shall not be used to make a payment for
16membership dues for a country club, health club, or other
17recreational facility.
18(5) Campaign funds shall not be used to make tuition payments,
19unless the payments are directly related to a political, legislative,
20or governmental purpose.
21(c) Campaign funds shall not be used to pay or reimburse fines,
22penalties, judgments, or settlements, except those
resulting from
23either of the following:
24(1) Parking citations incurred in the performance of an activity
25that was directly related to a political, legislative, or governmental
26purpose.
27(2) Any other action for which payment of attorney’s fees from
28contributions would be permitted pursuant to this title.begin insert However,end insert
29begin insert campaign funds shall not be used to pay a fine, penalty, judgment,
30or settlement relating to an expenditure of campaign funds that
31resulted in either of the following:end insert
32(A) A personal benefit to the candidate or
officer if it is
33determined that the expenditure was not reasonably related to a
34political, legislative, or governmental purpose.
35(B) A substantial personal benefit to the candidate or officer if
36it is determined that the expenditure was not directly related to a
37political, legislative, or governmental purpose.
38(d) Campaign funds shall not be usedbegin delete for campaign, business, begin insert to purchase clothingend insert to be worn by
39or casual clothing except specialty clothing that is not suitable for
40everyday use, including, but not limited to, formal wear, if this
P14 1attire isend deletebegin delete theend deletebegin insert
aend insert candidate or
2electedbegin delete officer and is directly related to a political, legislative, or begin insert
officerend insert.
3governmental purposeend delete
4(e) (1) Except where otherwise prohibited by law, campaign
5funds may be used to purchase or reimburse for the costs of
6purchase of tickets to political fundraising events for the attendance
7of a candidate, elected officer, or his or her immediate family, or
8an officer, director, employee, or staff of the committee or the
9elected officer’s governmental agency.
10(2) Campaign funds shall not be used to pay for or reimburse
11for the costs of tickets for entertainment or sporting events for the
12candidate, elected officer, or members of his or her immediate
13family, or an officer, director, employee, or staff of the committee,
14unless their attendance at the event is directly related to a political,
15legislative, or governmental purpose.
16(3) The purchase
of tickets for entertainment or sporting events
17for the benefit of persons other than the candidate, elected officer,
18or his or her immediate family are governed by subdivision (f).
19(f) (1) Campaign funds shall not be used to makebegin delete personal giftsend delete
20begin insert a gift to a spouse, child, sibling, or parent of a candidate, elected
21officer, or other individual with authority to approve the
22expenditure of campaign funds held by a committee, except for a
23gift of nominal value that is substantially similar to a gift made to
24other persons and that is directly related to a political, legislative,
25or governmental purpose. Campaign funds shall not be used to
26make personal gifts to any other person not described in this
27paragraphend insert unless the gift is directly
related to a political,
28legislative, or governmental purpose. The refund of a campaign
29contribution does not constitute the making of a gift.
30(2) begin deleteNothing in this section shall end deletebegin insertThis section does not end insertprohibit
31the use of campaign funds to reimburse or otherwise compensate
32a public employee for services rendered to a candidate or
33committee while on vacation, leave, or otherwise outside of
34compensated public time.
35(3) An election victory celebration or similar campaign event,
36or gifts with a total cumulative value of less than two hundred fifty
37dollars ($250) in a single year made to an individual employee, a
38committee worker, or an employee of the elected officer’s agency,
39are considered to be
directly related to a political, legislative, or
40governmental purpose. For purposes of this paragraph, a gift to a
P15 1member of a person’s immediate family shall be deemed to be a
2gift to that person.
3(g) Campaign funds shall not be used to make loans other than
4to organizations pursuant to Section 89515, or, unless otherwise
5prohibited, to a candidate for elective office, political party, or
6committee.
begin insertSection 89513 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
8to read:end insert
This section governs the use of campaign funds for the
10specific expenditures set forth in this section. It is the intent of the
11Legislature that this sectionbegin delete shallend delete guide the interpretation of the
12standard imposed by Section 89512 as applied to other expenditures
13not specifically set forth in this section.
14(a) (1) Campaign funds shall not be used to pay or reimburse
15begin delete theend deletebegin insert aend insert candidate,begin delete theend delete
elected officer, or any individual or individuals
16with authority to approve the expenditure of campaign funds held
17by a committee, or employees or staff of the committee or the
18elected officer’s governmentalbegin delete agencyend deletebegin insert agency,end insert for travel expenses
19and necessarybegin delete accommodationsend deletebegin insert accommodations,end insert except when
20these expenditures are directly related to a political, legislative, or
21governmental purpose.
22(2) Forbegin delete theend delete
purposes of this section, payments or reimbursements
23for travel and necessary accommodations shall be considered as
24directly related to a political, legislative, or governmental purpose
25if the payments would meet standards similar to the standards of
26the Internal Revenue Service pursuant to Sections 162 and 274 of
27the Internal Revenue Code for deductions of travel expenses under
28the federal income tax law.
29(3) Forbegin delete theend delete purposes of this section, payments or reimbursement
30for travel by the household of a candidate or elected officer when
31traveling to the same destination in order to accompany the
32candidate or elected officer shall be considered for the same
33purpose as the candidate’s or elected officer’s travel.
34(4) begin deleteWhenever end deletebegin insertIf
end insertcampaign funds are used to pay or reimburse
35a candidate, elected officer, his or her representative, or a member
36of the candidate’s household for travel expenses and necessary
37accommodations, the expenditure shall be reported as required by
38Section 84211.
39(5) begin deleteWhenever end deletebegin insertIf end insertcampaign funds are used to pay or reimburse
40for travel expenses and necessary accommodations, any mileage
P16 1credit that is earned or awarded pursuant to an airline bonus
2mileage program shall be deemed personally earned by or awarded
3to the individual traveler. Neither the earning or awarding of
4mileage credit, nor the redeeming of credit for actual travel, shall
5be subject to reporting pursuant to Section 84211.
6(6) Campaign funds shall not be used to make a payment for a
7personal vacation for a candidate; elected officer; immediate
8family member of a candidate or elected officer; or an officer,
9director, employee, or member of the staff of a candidate, elected
10officer, or committee.
11(b) (1) Campaign funds shall not be used to pay for or reimburse
12the cost of professional services unless the services are directly
13related to a political, legislative, or governmental purpose.
14(2) Expenditures by a committee to pay for professional services
15reasonably required by the committee to assist it in the performance
16of its administrative functions are directly related to a political,
17legislative, or governmental purpose.
18(3) Campaign funds shall not be used to pay health-related
19expenses for a candidate, elected officer, or any individual or
20individuals with authority to approve the expenditure of campaign
21funds held by a committee, or members of his or her household.
22“Health-related expenses” includes, but is not limited to,
23examinations by physicians, dentists, psychiatrists, psychologists,
24or begin deletecounselors,end deletebegin insert counselors;end insert expenses for medications,begin delete treatmentsend delete
25begin insert treatments,end insert or medicalbegin delete equipment,end deletebegin insert
equipment;end insert and expenses for
26begin delete hospitalization, health club dues,end deletebegin insert
hospitalizationend insert and special dietary
27foods. However, campaign funds may be used to pay employer
28costs of health care benefits of a bona fide employee or independent
29contractor of the committee.
30(4) Campaign funds shall not be used to make a payment for
31membership dues for a country club, health club, or other
32recreational facility.
33(5) Campaign funds shall not be used to make tuition payments,
34unless the payments are directly related to a political, legislative,
35or governmental purpose.
36(c) begin insert(1)end insertbegin insert end insert Campaign funds shall not be used to pay or reimburse
37fines, penalties, judgments, or settlements, except those resulting
38from either of the following:
39(1)
end delete
P17 1begin insert(A)end insert Parking citations incurred in the performance of an activity
2that was directly related to a political, legislative, or governmental
3purpose.
4(2)
end delete
5begin insert(B)end insert Any other action for which payment of attorney’s fees from
6contributions would be permitted pursuant to this title.begin insert However,
7campaign funds shall not be used to pay a fine, penalty, judgment,
8or settlement relating to an expenditure of campaign funds that
9resulted in either of the following:end insert
10(i) A personal benefit to the candidate or officer if it is
11determined that the expenditure was not reasonably related to a
12political, legislative, or governmental purpose.
13(ii) A substantial personal benefit to the candidate or officer if
14it is determined that the expenditure was
not directly related to a
15political, legislative, or governmental purpose.
16(2) Campaign funds shall not be used to pay a restitution fine
17imposed under Section 86 of the Penal Code.
18(d) Campaign funds shall not be usedbegin delete for campaign, business, begin insert
to purchase clothingend insert to be worn by
19or casual clothing except specialty clothing that is not suitable for
20everyday use, including, but not limited to, formal wear, if this
21attire isend deletebegin delete theend deletebegin insert aend insert candidate or
22electedbegin delete officer and is directly related to a political, legislative, or begin insert officerend insert.
23governmental purposeend delete
24(e) (1) Except where otherwise prohibited by law, campaign
25funds may be used to purchase or reimburse for the costs of
26purchase of tickets to political fundraising events for the attendance
27of a candidate, elected officer, or his or her immediate family, or
28an officer, director, employee, or staff of the committee or the
29elected officer’s governmental
agency.
30(2) Campaign funds shall not be used to pay for or reimburse
31for the costs of tickets for entertainment or sporting events for the
32candidate, elected officer, or members of his or her immediate
33family, or an officer, director, employee, or staff of the committee,
34unless their attendance at the event is directly related to a political,
35legislative, or governmental purpose.
36(3) The purchase of tickets for entertainment or sporting events
37for the benefit of persons other than the candidate, elected officer,
38or his or her immediate family are governed by subdivision (f).
39(f) (1) Campaign funds shall not be used to makebegin delete personal giftsend delete
40begin insert
a gift to a spouse, child, sibling, or parent of a candidate, elected
P18 1officer, or other individual with authority to approve the
2expenditure of campaign funds held by a committee, except for a
3gift of nominal value that is substantially similar to a gift made to
4other persons and that is directly related to a political, legislative,
5or governmental purpose. Campaign funds shall not be used to
6make personal gifts to any other person not described in this
7paragraphend insert unless the gift is directly related to a political,
8legislative, or governmental purpose. The refund of a campaign
9contribution does not constitute the making of a gift.
10(2) begin deleteNothing in this section shall end deletebegin insertThis section does not end insertprohibit
11the use of campaign
funds to reimburse or otherwise compensate
12a public employee for services rendered to a candidate or
13committee while on vacation, leave, or otherwise outside of
14compensated public time.
15(3) An election victory celebration or similar campaign event,
16or gifts with a total cumulative value of less than two hundred fifty
17dollars ($250) in a single year made to an individual employee, a
18committee worker, or an employee of the elected officer’s agency,
19are considered to be directly related to a political, legislative, or
20governmental purpose. For purposes of this paragraph, a gift to a
21member of a person’s immediate family shall be deemed to be a
22gift to that person.
23(g) Campaign funds shall not be used to make loans other than
24to organizations pursuant to Section 89515, or, unless otherwise
25prohibited, to a candidate for elective office, political party, or
26
committee.
Section 89519 of the Government Code, as amended
28by Chapter 9 of the Statutes of 2014, is amended to read:
(a) Upon the 90th day after leaving an elective office,
30or the 90th day following the end of the postelection reporting
31period following the defeat of a candidate for elective office,
32whichever occurs last, campaign funds under the control of the
33former candidate or elected officer shall be considered surplus
34campaign funds and shall be disclosed pursuant to Chapter 4
35(commencing with Section 84100).
36(b) Surplus campaign funds shall be used only for the following
37purposes:
38(1) The payment of outstanding campaign debts or elected
39officer’s expenses.
40(2) The repayment of contributions.
P19 1(3) Donations to a bona fide charitable, educational, civic,
2religious, or similar tax-exempt, nonprofit organization, where no
3substantial part of the proceeds will have a material financial effect
4on the former candidate or elected officer, any member of his or
5her immediate family, or his or her campaign treasurer.
6(4) Contributions to a political party committee, provided the
7campaign funds are not used to support or oppose candidates for
8elective office. However, the campaign funds may be used by a
9political party committee to conduct partisan voter registration,
10partisan get-out-the-vote activities, and slate mailers as that term
11is defined in Section 82048.3.
12(5) Contributions to support or oppose a candidate for federal
13office, a candidate for elective office in a state other than
14California, or a ballot measure.
15(6) The payment for professional services reasonably required
16by the committee to assist in the performance of its administrative
17functions, including payment for attorney’s fees and other costs
18for litigation that arises directly out of a candidate’s or elected
19officer’s activities, duties, or status as a candidate or elected officer,
20including, but not limited to, an action to enjoin defamation,
21defense of an action brought for a violation of state or local
22campaign, disclosure, or election laws, and an action from an
23election contest or recount.
24(c) For
purposes of this section, the payment for, or the
25reimbursement to the state of, the costs of installing and monitoring
26an electronic security system in the home or office, or both, of a
27candidate or elected officer who has received threats to his or her
28physical safety shall be deemed an outstanding campaign debt or
29elected officer’s expense, provided that the threats arise from his
30or her activities, duties, or status as a candidate or elected officer
31and that the threats have been reported to and verified by an
32appropriate law enforcement agency. Verification shall be
33determined solely by the law enforcement agency to which the
34threat was reported. The candidate or elected officer shall report
35an expenditure of campaign funds made pursuant to this section
36to the Commission. The report to the Commission shall include
37the date that the candidate or elected officer informed the law
38enforcement
agency of the threat, the name and the telephone
39number of the law enforcement agency, and a brief description of
40the threat. No more than five thousand dollars ($5,000) in surplus
P20 1campaign funds may be used, cumulatively, by a candidate or
2elected officer pursuant to this subdivision. Payments made
3pursuant to this subdivision shall be made during the two years
4immediately following the date upon which the campaign funds
5become surplus campaign funds. The candidate or elected officer
6shall reimburse the surplus fund account for the fair market value
7of the security system no later than two years immediately
8following the date upon which the campaign funds became surplus
9campaign funds. The campaign funds become surplus campaign
10funds upon sale of the property on which the system is installed,
11or prior to the closing of the surplus campaign fund account,
12whichever comes first. The electronic
security system shall be the
13property of the campaign committee of the candidate or elected
14officer.
(a) Section 5.1 of this bill incorporates amendments
16to Section 89513 of the Government Code proposed by both this
17bill and Assembly Bill 1666. It shall only become operative if (1)
18both bills are enacted and become effective on or before January
191, 2015, (2) each bill amends Section 89513 of the Government
20Code, (3) Senate Bill 831 is not enacted or as enacted does not
21amend Section 89513 of the Government Code, and (4) this bill is
22enacted after Assembly Bill 1666, in which case Sections 5, 5.2,
23and 5.3 of this bill shall not become operative.
24(b) Section 5.2 of this bill incorporates amendments to Section
2589513 of the Government Code proposed by both this bill and
26Senate Bill 831. It shall only become operative if (1) both bills are
27enacted and become effective on or before January 1, 2015, (2)
28each bill amends Section 89513 of the Government Code, (3)
29Assembly Bill 1666 is not enacted or as enacted does not amend
30Section 89513 of the Government Code, and (4) this bill is enacted
31after Senate Bill 831, in which case Sections 5, 5.1, and 5.3 of this
32bill shall not become operative.
33(c) Section 5.3 of this bill incorporates amendments to Section
3489513 of the Government Code proposed by this bill, Assembly
35Bill 1666, and Senate Bill 831. It shall only become operative if
36(1) all three bills are enacted and become effective on or before
37January 1, 2015, (2) all three bills amend Section 89513 of the
38Government Code, and (3)
this bill is enacted after Assembly Bill
391666 and Senate Bill 831, in which case Sections 5, 5.1, and 5.2
40of this bill shall not become operative.
No reimbursement is required by this act pursuant to
3Section 6 of Article XIII B of the California Constitution because
4the only costs that may be incurred by a local agency or school
5district will be incurred because this act creates a new crime or
6infraction, eliminates a crime or infraction, or changes the penalty
7for a crime or infraction, within the meaning of Section 17556 of
8the Government Code, or changes the definition of a crime within
9the meaning of Section 6 of Article XIII B of the California
10Constitution.
The Legislature finds and declares that this bill furthers
13the purposes of the Political Reform Act of 1974 within the
14meaning of subdivision (a) of Section 81012 of the Government
15Code.
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