Bill Text: CA AB741 | 2009-2010 | Regular Session | Introduced

---

Bill Title: Political Reform Act of 1974: campaign funds.

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced - Dead) 2010-02-02 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB741 Detail]

Download: California-2009-AB741-Introduced.html

---

BILL NUMBER: AB 741	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Bill Berryhill

                        FEBRUARY 26, 2009

   An act to amend Section 89514 of the Government Code, relating to
the Political Reform Act of 1974.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 741, as introduced, Bill Berryhill. Political Reform Act of
1974: campaign funds.
   Existing law provides that campaign funds, including funds given
for the purpose of promoting or defeating a ballot measure, are held
in trust and may be used only for expenses associated with an
election or associated with holding office. The act further specifies
that the expenditure of campaign funds is within the lawful
execution of the trust if the expenditure is reasonably related to a
political, legislative, or governmental purpose. Under the act, an
expenditure of campaign funds for attorney's fees and other costs in
connection with administrative, civil, or criminal litigation is
deemed to be directly related to a political, legislative, or
governmental purpose if the litigation arises directly out of a
candidate's or elected officer's activities, duties, or status as a
candidate or elected officer.
   This bill would provide that the expenditure of campaign funds
held by a ballot measure committee for a candidate's or elected
officer's attorney's fees and other costs in connection with
administrative, civil, or criminal litigation is not directly related
to a political, legislative, or governmental purpose and is not
within the lawful execution of the trust in which those funds are
held.
   Existing law makes a willful violation of the Political Reform Act
of 1974 a misdemeanor and subjects offenders to criminal penalties.
   This bill would impose a state-mandated local program by creating
additional crimes.
   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.
   The Political Reform Act of 1974, an initiative measure, provides
that the Legislature may amend the act to further the act's purposes
upon a 2/3 vote of each house and compliance with specified
procedural requirements.
   This bill would declare that it furthers the purposes of the act.

   Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 89514 of the Government Code is amended to
read:
   89514.   (a)    Expenditures of campaign funds
for attorney's fees and other costs in connection with
administrative, civil, or criminal litigation are not directly
related to a political, legislative, or governmental purpose except
where the litigation is directly related to activities of a committee
that are consistent with its primary objectives or arises directly
out of a committee's activities or out of a candidate's or elected
office'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 to enjoin defamation, defense of an
action brought for a violation of state or local campaign,
disclosure, or election laws, and an action arising from an election
contest or recount. 
   (b) Notwithstanding subdivision (a), the expenditure of campaign
funds held by a ballot measure committee for a candidate's or elected
officer's attorney's fees and other costs in connection with
administrative, civil, or criminal litigation is not directly related
to a political, legislative, or governmental purpose and is not
within the lawful execution of the trust imposed by Section 89510 of
this code and Section 18680 of the Elections Code. 
  SEC. 2.  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. 3.  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.