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AB-664 Political Reform Act of 1974: campaign fund expenditures.(2017-2018)

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Date Published: 01/11/2018 09:00 PM
AB664:v96#DOCUMENT

Amended  IN  Assembly  January 11, 2018
Amended  IN  Assembly  January 03, 2018
Amended  IN  Assembly  April 18, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 664


Introduced by Assembly Member Steinorth

February 14, 2017


An act to amend Section 84307.5 of the Government Code, relating to the Political Reform Act of 1974.


LEGISLATIVE COUNSEL'S DIGEST


AB 664, as amended, Steinorth. Political Reform Act of 1974: campaign fund expenditures.
The Political Reform Act of 1974 prohibits a spouse or domestic partner of an elected officer or a candidate for elective office from receiving, in exchange for services rendered, compensation from campaign funds held by a controlled committee of the officer or candidate.
This bill would prohibit a parent, grandparent, sibling, child, or grandchild of an elected officer or a candidate for elective office from receiving, in exchange for goods, services, facilities, or anything of value other than money rendered, value, compensation from campaign funds held by a controlled committee of that officer or candidate which exceeds the fair market value of that item. The bill would also prohibit the payment of financial or material compensation beyond fair market value from campaign funds held by a controlled committee of an elected officer or candidate for elective office, in exchange for services rendered, to any vendor that is majority-owned or controlled by any spouse or domestic partner, parent, grandparent, sibling, child, or grandchild of that officer or candidate.
A violation of the act may be punished as a misdemeanor. By creating a new 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.
Vote: 2/3   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

The people of the State of California do enact as follows:


SECTION 1.

 Section 84307.5 of the Government Code is amended to read:

84307.5.
 (a) A spouse or domestic partner of an elected officer or a candidate for elective office shall not receive, in exchange for services rendered, compensation from campaign funds held by a controlled committee of the elected officer or candidate for elective office.
(b) A parent, grandparent, sibling, child, or grandchild of an elected officer or a candidate for elective office shall not receive, in exchange for goods, services, facilities facilities, or anything of value other than money rendered, value, compensation from campaign funds held by a controlled committee of the elected officer or candidate for elective office that exceeds the fair market value, as defined in Section 82025.5, of the exchanged item.
(c) Financial or material compensation from campaign funds held by a controlled committee of an elected officer or candidate for elective office shall not be paid beyond fair market value, as defined in Section 82025.5, in exchange for services rendered, to any vendor that is majority-owned or controlled by any spouse or domestic partner, parent, grandparent, sibling, child, or grandchild of that officer or candidate.
(d) Nothing in subdivision (b) or (c) shall be construed to authorize a controlled committee to pay campaign funds in excess of fair market value, as defined in Section 82025.5, in exchange for goods, services, facilities, or anything of value, to any person or vendor.

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.