California Code of Regulations › Title 2 - Administration › Division 6 - Fair Political Practices Commission › Chapter 4 - Campaign Disclosure › Section 18404.1 - Termination and Reopening of Committees

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) When a candidate controlled committee
				organized for elective state office, or an elective city or county office
				subject to the contribution limit in Section
				85301(d), has no
				"net debts outstanding" as defined in Regulations 18531.6(d), 18531.61(b)(3),
				18531.63(e), and 18531.64(b)(3), the committee must be terminated as set forth
				in Regulation 18404 no later than 24 months after the earliest of the date the
				candidate is defeated, leaves office or the term of office for which the
				committee was formed ends or, for withdrawn candidates, no later than 24 months
				after the election from which the candidate withdrew.
(b) Campaign Bank Accounts. On or before
				termination of the candidate controlled committee, the campaign bank account
				associated with that committee must be closed. No further activity, including
				receipt of contributions or making of payments, is allowed after the date of
				the termination of the committee unless the committee and a campaign bank
				account are reopened pursuant to this regulation or the committee is accepting
				a refund under subdivision (g)(1)(A)-(C) of this regulation. Contributions
				received while a committee is closed must be returned to the contributors.
				Contributions received by a committee reopened in accordance with this
				regulation are subject to the limits applicable to the election for which the
				committee was originally formed as well as Regulations 18531.6, 18531.61 and
				18536.
(c) Local Committees.
				Candidates who are elected to an elective state office, or an elective city or
				county office subject to the contribution limit in Section
				85301(d), must
				terminate any controlled committees formed for local elections held concurrent
				with or prior to their election to that office. Such termination shall be
				pursuant to Regulation 18404 within 24 months of the candidate's election to
				that office.
(d) Creditors' Notice.
				The committee shall give at least 60 days notice of its impending termination
				to all creditors. Such notice shall include the date upon which the committee
				expects to file its terminating statement of organization.
(e) Requests for Extensions. A committee may,
				for good cause, seek from the Executive Director an extension of time to comply
				with the committee termination requirements of this regulation. Such a request
				shall be submitted to the Executive Director prior to the original due date for
				the committee's termination, and shall include evidence of good cause for the
				request.
(f) Local Candidate
				Controlled Committees. This regulation does not apply to local candidate
				controlled committees, except as provided in subdivision (c) and subdivision
				(g)(1)(A)-(C) of this regulation, and those candidate controlled committees
				organized for an elective city or county office subject to the contribution
				limit in Section
				85301(d).
(g) Reopening of Terminated Committees. A
				committee subject to the requirements of this regulation may submit a request
				to the Executive Director of the Fair Political Practices Commission to reopen
				for any of the following reasons:
(1) To
				receive a refund or similar payment received after termination of the
				committee, except as provided in subdivision (g)(1)(A)-(C);
(A) A state or local candidate controlled
				committee, including city and county candidate controlled committees subject to
				the contribution limit in Section
				85301(d), that has
				terminated may accept a refund from a governmental entity without reopening. A
				state or local committee, including city and county candidate controlled
				committees subject to the contribution limit in Section
				85301(d), that has
				terminated may accept a refund from a vendor or other person without reopening
				if the committee did not know of its entitlement to the refund prior to
				termination and the refund or refunds total no more than $10,000.
(B) A refund allowed by subdivision (g)(1)(A)
				may only be transferred to a committee that would have been lawfully allowed to
				receive funds from the terminated committee prior to termination. A committee
				receiving a refund under subdivision (g)(1)(A) is not required to place the
				refund in its bank account if transferring the refund to another
				committee.
(C) A refund allowed by
				subdivision (g)(1)(A) must be reported as follows: The terminated committee
				must file a campaign statement for the period in which any refund was received
				by the committee and report the refund as a miscellaneous increase to cash on
				the campaign statement and as an expenditure when the funds are used. In the
				case that the funds are transferred to a new committee, this transfer must be
				reported as an expenditure on the terminated committee's campaign statement. If
				attribution is required under Section
				85306, the committee to which a
				refund is transferred must report the receipt of funds as a contribution and
				attribute as required by Section
				85306. If attribution is not
				required, the committee to which a refund is transferred must report the
				receipt of funds as a miscellaneous increase to cash on its campaign statement
				covering the period in which the funds were transferred.