Amended IN Assembly April 18, 2017 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 664Introduced by Assembly Member SteinorthFebruary 14, 2017 An act to add Section 89512.3 to amend Section 84307.5 of the Government Code, relating to the Political Reform Act of 1974. LEGISLATIVE COUNSEL'S DIGESTAB 664, as amended, Steinorth. Political Reform Act of 1974: campaign fund expenditures.The Political Reform Act of 1974 requires that contributions deposited into a campaign account for a candidate for elective office be held in trust for expenses associated with the election of the candidate or for expenses associated with holding office. The act imposes limitations on certain expenditures as not being within the lawful execution of this trust depending on the relation between the expenditure and a political, legislative, or governmental purpose, as specified 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 extend this prohibition to also include a grandparent, sibling, child, or grandchild of an elected officer or a candidate for elective office. The bill would also prohibit the payment of financial or material compensation from campaign funds held by a controlled committee of an elected officer or candidate for elective office, in exchange for services rendered, to any parent, vendor that is majority-owned or controlled by any spouse or domestic partner, parent, grandparent, sibling, child, or grandchild of that officer or candidate. The bill would define the terms child and parent for these purposes.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 acts 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: YES Bill TextThe 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, parent, grandparent, sibling, child, or grandchild 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) 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, 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.SECTION 1.Section 89512.3 is added to the Government Code, to read:89512.3.(a) 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, in exchange for services rendered, to any parent, spouse or domestic partner, grandparent, sibling, child, or grandchild of that officer or candidate.(b)For purposes of this section, the terms child and parent shall have the same meanings as those set forth in Section 12945.2.SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB 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. Amended IN Assembly April 18, 2017 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 664Introduced by Assembly Member SteinorthFebruary 14, 2017 An act to add Section 89512.3 to amend Section 84307.5 of the Government Code, relating to the Political Reform Act of 1974. LEGISLATIVE COUNSEL'S DIGESTAB 664, as amended, Steinorth. Political Reform Act of 1974: campaign fund expenditures.The Political Reform Act of 1974 requires that contributions deposited into a campaign account for a candidate for elective office be held in trust for expenses associated with the election of the candidate or for expenses associated with holding office. The act imposes limitations on certain expenditures as not being within the lawful execution of this trust depending on the relation between the expenditure and a political, legislative, or governmental purpose, as specified 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 extend this prohibition to also include a grandparent, sibling, child, or grandchild of an elected officer or a candidate for elective office. The bill would also prohibit the payment of financial or material compensation from campaign funds held by a controlled committee of an elected officer or candidate for elective office, in exchange for services rendered, to any parent, vendor that is majority-owned or controlled by any spouse or domestic partner, parent, grandparent, sibling, child, or grandchild of that officer or candidate. The bill would define the terms child and parent for these purposes.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 acts 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: YES Amended IN Assembly April 18, 2017 Amended IN Assembly April 18, 2017 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 664 Introduced by Assembly Member SteinorthFebruary 14, 2017 Introduced by Assembly Member Steinorth February 14, 2017 An act to add Section 89512.3 to amend Section 84307.5 of the Government Code, relating to the Political Reform Act of 1974. LEGISLATIVE COUNSEL'S DIGEST ## LEGISLATIVE COUNSEL'S DIGEST AB 664, as amended, Steinorth. Political Reform Act of 1974: campaign fund expenditures. The Political Reform Act of 1974 requires that contributions deposited into a campaign account for a candidate for elective office be held in trust for expenses associated with the election of the candidate or for expenses associated with holding office. The act imposes limitations on certain expenditures as not being within the lawful execution of this trust depending on the relation between the expenditure and a political, legislative, or governmental purpose, as specified 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 extend this prohibition to also include a grandparent, sibling, child, or grandchild of an elected officer or a candidate for elective office. The bill would also prohibit the payment of financial or material compensation from campaign funds held by a controlled committee of an elected officer or candidate for elective office, in exchange for services rendered, to any parent, vendor that is majority-owned or controlled by any spouse or domestic partner, parent, grandparent, sibling, child, or grandchild of that officer or candidate. The bill would define the terms child and parent for these purposes.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 acts 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. The Political Reform Act of 1974 requires that contributions deposited into a campaign account for a candidate for elective office be held in trust for expenses associated with the election of the candidate or for expenses associated with holding office. The act imposes limitations on certain expenditures as not being within the lawful execution of this trust depending on the relation between the expenditure and a political, legislative, or governmental purpose, as specified 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 extend this prohibition to also include a grandparent, sibling, child, or grandchild of an elected officer or a candidate for elective office. The bill would also prohibit the payment of financial or material compensation from campaign funds held by a controlled committee of an elected officer or candidate for elective office, in exchange for services rendered, to any parent, vendor that is majority-owned or controlled by any spouse or domestic partner, parent, grandparent, sibling, child, or grandchild of that officer or candidate. The bill would define the terms child and parent for these purposes. 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 acts 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 ## Bill Text 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, parent, grandparent, sibling, child, or grandchild 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) 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, 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.SECTION 1.Section 89512.3 is added to the Government Code, to read:89512.3.(a) 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, in exchange for services rendered, to any parent, spouse or domestic partner, grandparent, sibling, child, or grandchild of that officer or candidate.(b)For purposes of this section, the terms child and parent shall have the same meanings as those set forth in Section 12945.2.SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB 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. The people of the State of California do enact as follows: ## 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, parent, grandparent, sibling, child, or grandchild 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) 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, 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. SECTION 1. Section 84307.5 of the Government Code is amended to read: ### SECTION 1. 84307.5. (a) A spouse or domestic partner, parent, grandparent, sibling, child, or grandchild 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) 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, 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. 84307.5. (a) A spouse or domestic partner, parent, grandparent, sibling, child, or grandchild 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) 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, 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. 84307.5. (a) A spouse or domestic partner, parent, grandparent, sibling, child, or grandchild 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) 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, 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. 84307.5. (a) A spouse or domestic partner, parent, grandparent, sibling, child, or grandchild 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) 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, 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) 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, in exchange for services rendered, to any parent, spouse or domestic partner, grandparent, sibling, child, or grandchild of that officer or candidate. (b)For purposes of this section, the terms child and parent shall have the same meanings as those set forth in Section 12945.2. SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution. SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution. SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution. ### SEC. 2. 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. 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. 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. ### SEC. 3.