Article 9. Misuse Of Campaign Funds of California Elections Code >> Division 18. >> Chapter 7. >> Article 9.
Every person who is entrusted with money or things of value
for the purpose of promoting or defeating any initiative, referendum,
or recall petition or any measure that has qualified for the ballot
is a trustee of the money or things of value. If a person wrongfully
appropriates the money or things of value to any use or purpose not
in the due and lawful execution of the trust, the person shall be
punishable by a fine not exceeding five thousand dollars ($5,000), or
by imprisonment pursuant to subdivision (h) of Section 1170 of the
Penal Code for 16 months or two or three years, or in a county jail
not exceeding one year, or by both that fine and imprisonment. The
following expenses are within the due and lawful execution of the
trust:
(a) Securing signatures to initiative, referendum, or recall
petitions.
(b) Circulating initiative, referendum, or recall petitions.
(c) Holding and conducting public meetings.
(d) Printing and circulating prior to an election:
(1) Specimen ballots.
(2) Handbills.
(3) Cards.
(4) Other papers.
(e) Advertising.
(f) Postage.
(g) Expressage.
(h) Telegraphing.
(i) Telephoning.
(j) All salaries and expenses of:
(1) Campaign managers.
(2) Lecturers.
(3) Solicitors.
(4) Agents.
(5) All persons employed in transacting business at headquarters
or branch offices, if the business transacted is related to promoting
or defeating an initiative, referendum, or recall petition or any
measure which has qualified for the ballot.
(k) Maintaining headquarters and branch offices.
(l) Renting of rooms for the transaction of the business of an
association.
(m) Attorney's fees and other costs in connection with litigation
where the litigation arises directly out of any of the following:
(1) Activities related to promoting or defeating an initiative,
referendum, or recall petition or any measure that has qualified for
the ballot.
(2) The enactment, by the initiative process, of any ordinance,
charter amendment, statute, or constitutional amendment.
(3) An election contest or recount.
(4) A violation of state or local campaign, disclosure, or
election laws.
The amendment of this section by adding subdivision (m) thereto,
made at the 1991-92 Regular Session of the Legislature, does not
constitute a change in, but is declaratory of, the existing law.
Expenses for food, clothing, shelter and other personal needs of
the trustee are not within the due and lawful execution of the trust.
However, expenses for travel and necessary accommodations for the
trustee are within the due and lawful execution of the trust, if the
travel and accommodations are related to promoting or defeating an
initiative, referendum, or recall petition or any measure that has
qualified for the ballot.