Senate Approves Bill Restricting Use of Campaign Funds

Faced with a continuing investigation of political corruption in the Capitol, the Senate gave near unanimous approval Thursday to a bill aimed at tightening up restrictions on the use of campaign funds by elected officials.

The measure, drafted by Senate President Pro Tem David A. Roberti (D-Los Angeles), was sent to the Assembly on a 35-1 vote.

The legislation is part of a package of bills put together in the wake of the FBI investigation of political corruption in the Capitol, which so far has produced two indictments and could lead to even more.

Other bills lawmakers are considering would limit gifts, speaking fees and outside income that legislators can receive; beef up penalties for ethics violations, and place controls on non-elected officials who shuffle back and forth from the private sector to government jobs.

Roberti’s bill, backed by the attorney general’s office, would amend the Political Reform Act of 1974 and portions of Proposition 73, a contribution limitation initiative approved by voters last year.

Critics say the current law is too vague, leaving too much open to interpretation. Officeholders have used campaign contributions to pay fines levied as the result of legal actions against them and purchase new clothes, cars and even a condominium. Campaign money has also been used to finance travel with wives or other family members and buy tickets to athletic and other entertainment events.

Current law allows personal use of campaign money, as long as there is “more than a negligible political, legislative or governmental purpose.” Roberti’s bill would still allow the personal use of campaign contributions but only if the “primary purpose” of the expenditure is political, legislative or governmental.

The Roberti bill would apply the “primary purpose” standard to money used for travel, attorney fees, cars, equipment and gifts. Travel expenses would be allowed only if they met guidelines established by the Internal Revenue Service governing tax deductions for business expenses.

Under the proposed legislation, the state Fair Political Practices Commission would be responsible for administering the law. Currently, the personal use of campaign funds is covered by the Elections Code, which is enforced by the attorney general’s office.

While the attorney general’s office can file both criminal and civil actions, its lawyers have complained that prosecutions are difficult because of the vagueness of the law and legal restrictions.

While the Fair Political Practices Commission cannot file criminal actions, it can hold hearings and levy fines. As a result, it is much feared by officeholders. The statute of limitations also runs longer in Fair Political Practices Commission actions--four years compared to one in actions filed by the attorney general’s office.

Roberti, in arguing for his bill on the Senate floor, said, “I do not believe that candidates and officeholders are engaged in wholesale abuses of current law. But it is abundantly clear that the law needs to be clarified and expanded to assure all Californians that their campaign contributions will be used for campaigning and not for some personal slush fund.”

Ruth Holton, a lobbyist for California Common Cause, said the public interest lobbying group supports the measure but with “reservations.”

Holton said enactment of the new standard would represent “a substantial improvement over current law,” but she said a better law would be one that requires political funds to be spent solely for campaign purposes, with no exceptions for personal use.

“That way we would be sure that they are not using campaign funds to supplement their own incomes or are abusing the trust of contributors by taking their families on vacation or spending the money for personal purposes,” she said.

Roberti said he expects amendments and refinements of the legislation during hearings in the Assembly.