Bill Text: CA AB2803 | 2023-2024 | Regular Session | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Campaign expenditures: criminal convictions: fees and costs.
Spectrum: Slight Partisan Bill (Democrat 2-1)
Status: (Enrolled) 2024-08-31 - Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 71. Noes 1.). [AB2803 Detail]
Download: California-2023-AB2803-Amended.html
Bill Title: Campaign expenditures: criminal convictions: fees and costs.
Spectrum: Slight Partisan Bill (Democrat 2-1)
Status: (Enrolled) 2024-08-31 - Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 71. Noes 1.). [AB2803 Detail]
Download: California-2023-AB2803-Amended.html
Amended
IN
Assembly
April 16, 2024 |
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Assembly Bill
No. 2803
Introduced by Assembly Member Valencia |
February 15, 2024 |
An act to amend Sections 89513 and 89514 of the Government Code, relating to the Political Reform Act of 1974.
LEGISLATIVE COUNSEL'S DIGEST
AB 2803, as amended, Valencia.
Campaign expenditures: criminal convictions: fees and costs.
Existing law, the Political Reform Act of 1974, deems all campaign contributions to be held in trust for expenses associated with seeking or holding office, and generally authorizes expenditures associated therewith if they are reasonably related to a political, legislative, or governmental purpose. Existing law prohibits the use of campaign funds to pay or reimburse fines, penalties, judgments, or settlements, except as specified. Existing law provides that the expenditure of campaign funds for attorney’s fees and other costs in connection with administrative, civil, or criminal litigation are not related to a political, legislative, or governmental purpose unless the litigation is directly related to activities of a committee that are consistent with its primary objectives or arises directly out of a candidate’s or elected officer’s activities, duties, or status as a candidate or
elected officer, as specified.
This bill would prohibit campaign funds from being used to reimburse expenditures for attorney’s fees and other costs in connection with criminal litigation if the litigation results in a conviction of the candidate or elected officer for a felony or an offense that involves moral turpitude, dishonesty, or fraud. involving certain types of offenses, as specified. The bill would prohibit the use of campaign funds to pay or reimburse a candidate or elected officer for a fine, penalty, judgment, or settlement relating to a conviction for a felony or an offense that involves moral turpitude, dishonesty, or fraud.
involving such specified offenses. The bill would require the candidate or elected officer, if convicted, to reimburse the campaign for all funds used in connection with other legal costs and expenses related to claims of criminal acts.
A violation of the Political Reform Act of 1974 is punishable as a misdemeanor. 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.
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 of the Legislature and compliance with specified procedural requirements.
This bill would declare that it furthers the purposes of the act.
Digest Key
Vote: 2/3 Appropriation: NO Fiscal Committee: YES Local Program: YESBill Text
The people of the State of California do enact as follows:
SECTION 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, the candidate or elected officer’s 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. The earning or awarding of mileage credit and the redeeming of credit for actual travel are not 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 their households. “Health-related expenses” includes, but is not limited to, examinations by physicians, dentists,
psychiatrists, psychologists, or counselors and expenses for medications, treatments, medical equipment, 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 all 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.
(3) Campaign funds shall not be used to pay or reimburse a candidate or elected officer for a fine, penalty, judgment, or settlement relating to a conviction for a felony or an offense that involves moral turpitude, dishonesty, or fraud. described in Section 20 of the Elections Code, or for a felony involving fraud. If a candidate or elected officer uses campaign funds for other legal costs and expenses related to claims of those criminal acts and is convicted, the candidate or elected officer shall reimburse the campaign for all funds used in connection with those other legal costs and expenses.
(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 as 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 the candidate or elected officer’s 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 the candidate or elected officer’s 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 the candidate or elected officer’s 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) 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.
(h) (1) Campaign funds shall not be used to pay or reimburse a candidate or elected officer for a penalty, judgment, or settlement related to a claim of sexual assault, sexual abuse, or sexual harassment filed against the candidate or elective officer in any civil, criminal, or administrative proceeding. If a candidate or elected officer uses campaign funds for other legal costs and expenses related to claims of those unlawful practices and is held liable for such a violation, the candidate or elected officer shall reimburse the campaign for all funds used
in connection with those other legal costs and expenses.
(2) For the purpose of this subdivision, “sexual assault” and “sexual abuse” have the same meaning as in Section 11165.1 of the Penal Code and “sexual harassment” has the same meaning as in subdivision (j) of Section 12940 of the Government Code.
(i) (1) For purposes of this subdivision, “childcare expenses” include the reasonable costs of professional daycare services, babysitting, nannying services, food and beverages, transportation to and from the location of a childcare services provider, before and after school programs, summer day camps, and preschool. Additional qualifying expenses include costs related to a nurse, home care provider, or other care provider for a disabled dependent child.
“Childcare expenses” do not include private school tuition, medical expenses, tutoring services, or payments to a relative, within the third degree of consanguinity, of a child, unless the relative owns or operates a professional daycare or babysitting service and the cost of the service is no greater than the relative would otherwise charge.
(2) Campaign funds may be used to pay or reimburse a candidate for reasonable and necessary childcare expenses for a dependent child resulting directly from the candidate engaging in campaign activities. For purposes of this paragraph, “directly” means that the candidate would not have incurred the childcare expenses if the candidate did not engage in the campaign activities.
(3) This section shall not be construed to limit the use of campaign
funds to pay for childcare expenses resulting from an officeholder engaging in a campaign activity with both political and legislative or governmental purposes.
SEC. 2.
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 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 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), campaign funds shall not be used to reimburse expenditures for attorney’s fees and other costs in connection with criminal litigation if the litigation results in a conviction of the candidate or elected officer for a felony or an offense that involves moral turpitude, dishonesty, or fraud. described in Section 20 of the Elections Code, or for a felony involving fraud.