The Political Reform Act of 1974 regulates the expenditure of campaign funds held by a committee. The act requires that an expenditure of campaign funds that confers a substantial personal benefit be directly related to a political, legislative, or governmental purpose. The act defines “substantial personal benefit” to mean an expenditure of campaign funds that results in a direct personal benefit with a value of more than $200 to a candidate, an elected officer, or an individual with authority to approve the expenditure of campaign funds held by a committee.
The act is administered and enforced by the Fair Political Practices Commission. The Commission is authorized to hold administrative hearings, as prescribed, to determine if a violation of the act has occurred. The act authorizes the Commission to issue an order imposing various
administrative remedies if the Commission determines that a violation of the act has occurred, including a monetary penalty of up to $5,000 per violation payable to the General Fund.
This bill would provide that if the Commission determines in an administrative action that an expenditure has been made that confers a substantial personal benefit but is not directly related to a political, legislative, or governmental purpose, in violation of the act, the individual who received the substantial personal benefit shall pay to the state General Fund, in addition to any administrative penalty imposed by the Commission, an amount equal to the substantial personal benefit that he or she received.
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.