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 23 vote of each house and compliance with specified procedural requirements. This bill would declare that it furthers the purposes of the act.