1 184487-2 : n : 03/31/2017 : JLB / th LRS2017-1437R1

8 SYNOPSIS: Under existing law, campaign funds may be

9 used only for specified purposes, including

10 necessary and ordinary expenditures of the

11 campaign, expenditures that are reasonably related

12 to performing the duties of the office held, and

13 legal fees and costs associated with a civil

14 action, criminal prosecution, or investigation

15 related to conduct reasonably related to performing

16 the duties of the office held.

17 This bill would specify types of

18 expenditures that are not for necessary and

19 ordinary expenses of a campaign or reasonably

20 related to performing the duties of the office and

21 delete the provision allowing the expenditure of

22 campaign funds for legal fees and costs associated

23 with a criminal prosecution or investigation.

24 Amendment 621 of the Constitution of Alabama

25 of 1901, now appearing as Section 111.05 of the

26 Official Recompilation of the Constitution of

27 Alabama of 1901, as amended, prohibits a general

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1 law whose purpose or effect would be to require a

2 new or increased expenditure of local funds from

3 becoming effective with regard to a local

4 governmental entity without enactment by a 2/3 vote

5 unless: it comes within one of a number of

6 specified exceptions; it is approved by the

7 affected entity; or the Legislature appropriates

8 funds, or provides a local source of revenue, to

9 the entity for the purpose.

10 The purpose or effect of this bill would be

11 to require a new or increased expenditure of local

12 funds within the meaning of the amendment. If this

13 bill is not enacted by a 2/3 vote, it will not

14 become effective with regard to a local entity

15 unless approved by the local entity or until, and

16 only as long as, the Legislature appropriates funds

17 or provides for a local source of revenue.

18

19 A BILL

20 TO BE ENTITLED

21 AN ACT

22

23 Relating to the expenditure of campaign funds; to

24 amend Section 17-5-7 of the Code of Alabama 1975, to specify

25 types of expenditures of campaign funds that are not lawful;

26 and in connection therewith would have as its purpose or

27 effect the requirement of a new or increased expenditure of

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1 local funds within the meaning of Amendment 621 of the

2 Constitution of Alabama of 1901, now appearing as Section

3 111.05 of the Official Recompilation of the Constitution of

4 Alabama of 1901, as amended.

5 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:

6 Section 1. Section 17-5-7 of the Code of Alabama

7 1975, is amended to read as follows:

8 "17-5-7.

9 "(a) Except as provided in subsection (d) and in

10 Section 17-5-7.1, a candidate, public official, or treasurer

11 of a principal campaign committee as defined in this chapter,

12 may only use campaign contributions, and any proceeds from

13 investing the contributions that are in excess of any amount

14 necessary to defray expenditures of the candidate, public

15 official, or principal campaign committee, for the following

16 purposes:

17 "(1) Necessary and ordinary expenditures of the

18 campaign.

19 "(2) Expenditures that are reasonably related to

20 performing the duties of the office held. For purposes of this

21 section, expenditures that are reasonably related to

22 performing the duties of the office held do not include

23 personal and legislative living expenses, as defined in this

24 chapter.

25 "(3) Donations to the State General Fund, the

26 Education Trust Fund, or equivalent county or municipal funds.

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1 "(4) Donations to an organization to which a federal

2 income tax deduction is permitted under subparagraph (A) of

3 paragraph (1) of subsection (b) of Section 170 of the Internal

4 Revenue Code of 1986, as amended, or any other charitable,

5 educational, or eleemosynary cause of Section 501 of Title 26

6 of the U. S. Code.

7 "(5) Inaugural or transitional expenses.

8 "(6) Donations to a legislative caucus organization

9 registered under this chapter which does not operate as a

10 political action committee.

11 "(7) Legal fees and costs associated with any civil

12 action, criminal prosecution, or investigation related to

13 conduct reasonably related to performing the duties of the

14 office held.

15 "(b) Notwithstanding any other provision of law,

16 including, but not limited to, Section 13A-10-61, a candidate,

17 public official, or principal campaign committee may only

18 accept, solicit, or receive contributions:

19 "(1) To influence the outcome of an election.

20 "(2) For a period of 12 months before an election in

21 which the person intends to be a candidate. Provided, however,

22 candidates for legislative and statewide office and their

23 principal campaign committees may not accept, solicit, or

24 receive contributions during the period when the Legislature

25 is convened in session. For purposes of this section, the

26 Legislature is convened in session at any time from the

27 opening day of the special or regular session and continued

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1 through the day of adjournment sine die for that session.

2 However, this subdivision shall not apply within 120 days of

3 any primary, runoff, or general election, and shall not apply

4 to the candidates or their principal campaign committees

5 participating in any special election as called by the

6 Governor. This subdivision shall not apply to a loan from a

7 candidate to his or her own principal campaign committee.

8 "(3) For a period of 120 days after the election in

9 which the person was a candidate, but only to the extent of

10 any campaign debt of the candidate or principal campaign

11 committee of the candidate as indicated on the campaign

12 financial disclosure form or to the extent of reaching the

13 threshold that is required for qualification as a candidate

14 for the office which he or she currently holds, or both.

15 "(4) For the purpose of paying all expenses

16 associated with an election challenge including, but not

17 limited to, quo warranto challenges.

18 "(c) Notwithstanding any other provision of law,

19 including, but not limited to, Section 13A-10-61, a candidate,

20 public official, or principal campaign committee shall not

21 accept, solicit, or receive contributions for any of the

22 following reasons:

23 "(1) As a bribe, as defined by Sections 13A-10-60 to

24 13A-10-63, inclusive.

25 "(2) For the intention of corruptly influencing the

26 official actions of the public official or candidate for

27 public office.

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1 "(d) Notwithstanding any other provision of law, a

2 principal campaign committee, during a two-year period

3 commencing on the day after each regularly scheduled general

4 election and ending on the day of the next regularly scheduled

5 general election, may pay qualifying fees to a political party

6 and in addition thereto, during that period, may expend up to

7 a cumulative total of five thousand dollars ($5,000) of

8 campaign contributions, and any proceeds from investing the

9 contributions, for the following purposes:

10 "(1) Tickets for political party dinners or

11 functions.

12 "(2) State or local political party dues or similar

13 expenses incurred by independent or write-in candidates.

14 "(e) For purposes of subdivisions (1) and (2) of

15 subsection (a), it shall be prima facie evidence that funds

16 are not for necessary and ordinary expenditures of the

17 campaign or are not expenditures that are reasonably related

18 to performing the duties of the office held when the funds are

19 used to buy, purchase, or are otherwise expended on any of the

20 following items or services:

21 "(1) Personal and legislative living expenses.

22 "(2) Household food items purchased for consumption

23 by the candidate, officeholder, or his or her family or

24 dependents.

25 "(3) Funeral, cremation, or other burial expenses.

26 "(4) Tuition payments for the candidate's or

27 officeholder's family or dependents, or any other person.

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1 "(5) Mortgage, rent, and utility payments for the

2 candidate's or officeholder's personal residence, even if a

3 portion of the residence is used for campaign or official

4 purposes.

5 "(6) Investment expenses, unless all of the

6 investment and its proceeds are used for campaign purposes or

7 one of the specifically enumerated purposes in this chapter.

8 "(7) Entertainment expenses, unless related to a

9 specific campaign event.

10 "(8) Dues and gratuities for country clubs, social

11 clubs, health clubs, recreational facilities, or other

12 nonpolitical organizations, unless tied to a specific campaign

13 or constituent event.

14 "(9) Salary payments to a family member of the

15 candidate, unless the family member is providing a bona fide

16 service to the campaign, the payments reflect the fair market

17 value of those services, and the payments and services are

18 properly documented by the campaign.

19 "(10) Signs or markers designating a bridge, public

20 structure or building, or a roadway or any portion thereof, in

21 honor of the officeholder or candidate or a member of his or

22 her family."

23 Section 2. Although this bill would have as its

24 purpose or effect the requirement of a new or increased

25 expenditure of local funds, the bill is excluded from further

26 requirements and application under Amendment 621, now

27 appearing as Section 111.05 of the Official Recompilation of

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1 the Constitution of Alabama of 1901, as amended, because the

2 bill defines a new crime or amends the definition of an

3 existing crime.

4 Section 3. This act shall become effective

5 immediately following its passage and approval by the

6 Governor, or its otherwise becoming law.

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