Bill Text: CA AB1692 | 2013-2014 | Regular Session | Chaptered
Bill Title: Political Reform Act of 1974.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2014-09-30 - Chaptered by Secretary of State - Chapter 884, Statutes of 2014. [AB1692 Detail]
Download: California-2013-AB1692-Chaptered.html
BILL NUMBER: AB 1692 CHAPTERED
BILL TEXT
CHAPTER 884
FILED WITH SECRETARY OF STATE SEPTEMBER 30, 2014
APPROVED BY GOVERNOR SEPTEMBER 30, 2014
PASSED THE SENATE AUGUST 27, 2014
PASSED THE ASSEMBLY AUGUST 28, 2014
AMENDED IN SENATE AUGUST 13, 2014
AMENDED IN ASSEMBLY APRIL 8, 2014
INTRODUCED BY Assembly Member Garcia
FEBRUARY 13, 2014
An act to amend Sections 85304, 85304.5, 89511, 89512, 89513, and
89519 of the Government Code, relating to the Political Reform Act of
1974.
LEGISLATIVE COUNSEL'S DIGEST
AB 1692, 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.
(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.
(3) 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.
(4) 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.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 85304 of the Government Code is amended to
read:
85304. (a) A candidate for elective state office or an elected
state officer may establish a separate account to defray attorney's
fees and other related legal costs incurred for the candidate's or
officer's legal defense if the candidate or officer is subject to one
or more civil or criminal proceedings or administrative proceedings
arising directly out of the conduct of an election campaign, the
electoral process, or the performance of the officer's governmental
activities and duties. These funds may be used only to defray those
attorney fees and other related legal costs.
(b) A candidate may receive contributions to this account that are
not subject to the contribution limits set forth in this article.
However, all contributions shall be reported in a manner prescribed
by the commission.
(c) Once the legal dispute is resolved, the candidate shall
dispose of any funds remaining after all expenses associated with the
dispute are discharged for one or more of the purposes set forth in
paragraphs (1) to (5), inclusive, of subdivision (b) of Section
89519.
(d) (1) For purposes of this section and Section 85304.5,
"attorney's fees and other related legal costs" includes only the
following:
(A) Attorney's fees and other legal costs related to the defense
of the candidate or officer.
(B) Administrative costs directly related to compliance with the
requirements of this title.
(2) "Attorney's fees and other related legal costs" does not
include expenses for fundraising, media or political consulting fees,
mass mailing or other advertising, or, except as expressly
authorized by subdivision (c) of Section 89513, a payment or
reimbursement for a fine, penalty, judgment or settlement, or a
payment to return or disgorge contributions made to any other
committee controlled by the candidate or officer.
SEC. 2. Section 85304.5 of the Government Code is amended to read:
85304.5. (a) A candidate for elective office other than an
elective state office or an elected officer other than an elected
state officer may establish a separate account pursuant to
subdivision (a) of Section 85304 and may use these funds only to
defray attorney's fees and other related legal costs.
(b) A candidate for an elective office other than an elective
state office may receive contributions to the separate account
subject to any limitations provided by local ordinance. However, all
contributions to these separate accounts shall be reported in a
manner prescribed by the commission.
(c) Once the legal dispute is resolved, the candidate or elected
officer shall dispose of any funds remaining in the separate accounts
after all expenses associated with the dispute are discharged for
one or more of the purposes set forth in paragraphs (1) to (5),
inclusive, of subdivision (b) of Section 89519.
(d) For purposes of this section, "attorney's fees and other
related legal costs" has the same meaning as in Section 85304.
SEC. 3. Section 89511 of the Government Code is amended to read:
89511. (a) This article applies to campaign funds held by
candidates for elective office, elected officers, controlled
committees, ballot measure committees, committees opposed to a
candidate or measure, and any committee which qualifies as a
committee pursuant to subdivision (a) of Section 82013.
(b) (1) For purposes of this chapter, "campaign funds" includes
any contributions, cash, cash equivalents, and other assets received
or possessed by a committee as defined by subdivision (a) of Section
82013.
(2) For purposes of this chapter, "committee" means a controlled
committee, ballot measure committee, committee opposed to a candidate
or measure, and any committee which qualifies as a committee
pursuant to subdivision (a) of Section 82013.
(3) For purposes of this chapter, "substantial personal benefit"
means an expenditure of campaign funds which results in a direct
personal benefit with a value of more than two hundred dollars ($200)
to a candidate, elected officer, or any individual or individuals
with authority to approve the expenditure of campaign funds held by a
committee.
(4) For purposes of this article, "household" includes the
candidate's or elected officer's spouse, dependent children, and
parents who reside with the candidate or elected officer.
(5) (A) For purposes of this article, "attorney's fees and other
costs" includes only the following:
(i) Attorney's fees and other legal costs related to the defense
of the candidate or officer.
(ii) Administrative costs directly related to compliance with the
requirements of this title.
(B) "Attorney's fees and other costs" does not include expenses
for fundraising, media or political consulting fees, mass mailing or
other advertising, or, except as expressly authorized by subdivision
(c) of Section 89513, a payment or reimbursement for a fine, penalty,
judgment or settlement, or a payment to return or disgorge
contributions made to any other committee controlled by the candidate
or officer.
SEC. 4. Section 89512 of the Government Code is amended to read:
89512. (a) An expenditure to seek office is within the lawful
execution of the trust imposed by Section 89510 if it is reasonably
related to a political purpose. An expenditure associated with
holding office is within the lawful execution of the trust imposed by
Section 89510 if it is reasonably related to a legislative or
governmental purpose. Expenditures which confer a substantial
personal benefit shall be directly related to a political,
legislative, or governmental purpose.
(b) Except as expressly authorized by this article, an expenditure
for a fine, penalty, judgment, or settlement is not within the
lawful execution of the trust imposed by Section 89510.
SEC. 5. 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
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 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 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.
(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.
(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. However,
campaign funds shall not be used to pay a fine, penalty, judgment, or
settlement relating to an expenditure of campaign funds that
resulted in either of the following:
(A) 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.
(B) 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.
(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.
(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 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.
(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 personal gifts
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 section shall 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. 5.1. 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
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 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 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.
(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.
(c) (1) Campaign funds shall not be used to pay or reimburse
fines, penalties, judgments, or settlements, except those resulting
from either of the following:
(A) Parking citations incurred in the performance of an activity
that was directly related to a political, legislative, or
governmental purpose.
(B) Any other action for which payment of attorney's fees from
contributions would be permitted pursuant to this title. However,
campaign funds shall not be used to pay a fine, penalty, judgment, or
settlement relating to an expenditure of campaign funds that
resulted in either of the following:
(i) 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.
(ii) 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.
(2) Campaign funds shall not be used to pay a restitution fine
imposed under Section 86 of the Penal Code.
(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.
(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 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.
(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 personal gifts
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 section shall 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. 5.2. 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 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 a
candidate, 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 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 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) 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) 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 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,
unless the payments are directly related to a political, legislative,
or governmental purpose.
(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. However,
campaign funds shall not be used to pay a fine, penalty, judgment, or
settlement relating to an expenditure of campaign funds that
resulted in either of the following:
(A) 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.
(B) 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.
(d) Campaign funds shall not be used 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 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.
(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) This section 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. 5.3. 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 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 a
candidate, 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 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 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) 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) 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 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,
unless the payments are directly related to a political, legislative,
or governmental purpose.
(c) (1) Campaign funds shall not be used to pay or reimburse
fines, penalties, judgments, or settlements, except those resulting
from either of the following:
(A) Parking citations incurred in the performance of an activity
that was directly related to a political, legislative, or
governmental purpose.
(B) Any other action for which payment of attorney's fees from
contributions would be permitted pursuant to this title. However,
campaign funds shall not be used to pay a fine, penalty, judgment, or
settlement relating to an expenditure of campaign funds that
resulted in either of the following:
(i) 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.
(ii) 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.
(2) Campaign funds shall not be used to pay a restitution fine
imposed under Section 86 of the Penal Code.
(d) Campaign funds shall not be used 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 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.
(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) This section 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. 6. Section 89519 of the Government Code, as amended by
Chapter 9 of the Statutes of 2014, is amended to read:
89519. (a) Upon the 90th day after leaving an elective office, or
the 90th day following the end of the postelection reporting period
following the defeat of a candidate for elective office, whichever
occurs last, campaign funds under the control of the former candidate
or elected officer shall be considered surplus campaign funds and
shall be disclosed pursuant to Chapter 4 (commencing with Section
84100).
(b) Surplus campaign funds shall be used only for the following
purposes:
(1) The payment of outstanding campaign debts or elected officer's
expenses.
(2) The repayment of contributions.
(3) Donations to a bona fide charitable, educational, civic,
religious, or similar tax-exempt, nonprofit organization, where no
substantial part of the proceeds will have a material financial
effect on the former candidate or elected officer, any member of his
or her immediate family, or his or her campaign treasurer.
(4) Contributions to a political party committee, provided the
campaign funds are not used to support or oppose candidates for
elective office. However, the campaign funds may be used by a
political party committee to conduct partisan voter registration,
partisan get-out-the-vote activities, and slate mailers as that term
is defined in Section 82048.3.
(5) Contributions to support or oppose a candidate for federal
office, a candidate for elective office in a state other than
California, or a ballot measure.
(6) The payment for professional services reasonably required by
the committee to assist in the performance of its administrative
functions, including payment for attorney's fees and other costs for
litigation that arises directly out of a candidate's or elected
officer's activities, duties, or status as a candidate or elected
officer, including, but not limited to, an action to enjoin
defamation, defense of an action brought for a violation of state or
local campaign, disclosure, or election laws, and an action from an
election contest or recount.
(c) For purposes of this section, the payment for, or the
reimbursement to the state of, the costs of installing and monitoring
an electronic security system in the home or office, or both, of a
candidate or elected officer who has received threats to his or her
physical safety shall be deemed an outstanding campaign debt or
elected officer's expense, provided that the threats arise from his
or her activities, duties, or status as a candidate or elected
officer and that the threats have been reported to and verified by an
appropriate law enforcement agency. Verification shall be determined
solely by the law enforcement agency to which the threat was
reported. The candidate or elected officer shall report an
expenditure of campaign funds made pursuant to this section to the
Commission. The report to the Commission shall include the date that
the candidate or elected officer informed the law enforcement agency
of the threat, the name and the telephone number of the law
enforcement agency, and a brief description of the threat. No more
than five thousand dollars ($5,000) in surplus campaign funds may be
used, cumulatively, by a candidate or elected officer pursuant to
this subdivision. Payments made pursuant to this subdivision shall be
made during the two years immediately following the date upon which
the campaign funds become surplus campaign funds. The candidate or
elected officer shall reimburse the surplus fund account for the fair
market value of the security system no later than two years
immediately following the date upon which the campaign funds became
surplus campaign funds. The campaign funds become surplus campaign
funds upon sale of the property on which the system is installed, or
prior to the closing of the surplus campaign fund account, whichever
comes first. The electronic security system shall be the property of
the campaign committee of the candidate or elected officer.
SEC. 7.
(a) Section 5.1 of this bill incorporates amendments to Section
89513 of the Government Code proposed by both this bill and Assembly
Bill 1666. It shall only become operative if (1) both bills are
enacted and become effective on or before January 1, 2015, (2) each
bill amends Section 89513 of the Government Code, (3) Senate Bill 831
is not enacted or as enacted does not amend Section 89513 of the
Government Code, and (4) this bill is enacted after Assembly Bill
1666, in which case Sections 5, 5.2, and 5.3 of this bill shall not
become operative.
(b) Section 5.2 of this bill incorporates amendments to Section
89513 of the Government Code proposed by both this bill and Senate
Bill 831. It shall only become operative if (1) both bills are
enacted and become effective on or before January 1, 2015, (2) each
bill amends Section 89513 of the Government Code, (3) Assembly Bill
1666 is not enacted or as enacted does not amend Section 89513 of the
Government Code, and (4) this bill is enacted after Senate Bill 831,
in which case Sections 5, 5.1, and 5.3 of this bill shall not become
operative.
(c) Section 5.3 of this bill incorporates amendments to Section
89513 of the Government Code proposed by this bill, Assembly Bill
1666, and Senate Bill 831. It shall only become operative if (1) all
three bills are enacted and become effective on or before January 1,
2015, (2) all three bills amend Section 89513 of the Government Code,
and (3) this bill is enacted after Assembly Bill 1666 and Senate
Bill 831, in which case Sections 5, 5.1, and 5.2 of this bill shall
not become operative.
SEC. 8. 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. 9. 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.
