San Jose Municipal Code Part 7 Debt Retirement and Surplus Campaign Funds

A. No money can be collected for debt retirement after the end of the campaign contribution collection periods set forth in Section 12.06.290. Except for an Election Contest or Recount Contribution, money raised during the Debt Retirement Contribution period may only be used to retire campaign-related debts and liabilities. All solicitations for funds made by a candidate or candidate-controlled committee during the Debt Retirement Contribution period must indicate that the funds will only be used to retire campaign-related debt and liabilities.

B. A candidate must retire all campaign-related debts, including loans, within one hundred eighty days after the date of the election.

C. A campaign-related debt, including any loan, which remains unpaid more than one hundred eighty days after the election is deemed to have been a campaign contribution which was accepted at the time the debt was incurred.

D. It is a violation of this section to forgive all or part of a loan or debt which is owed to the person by a candidate and which exceeds the applicable contribution limitations. Forgiveness of a loan or debt shall not be deemed to include the failure to collect the loan or debt where there have been substantial attempts, in good faith, to collect the monies owed and such efforts have proved unsuccessful. In such case, a candidate is not exonerated from violations of this chapter if an outstanding loan or debt exceeds the contribution limitations.

(Ords. 24499, 24577, 25257, 26440, 29642, 30768.)

A. Campaign funds under the control of a candidate for City office will be considered surplus campaign funds on the ninetieth (90th) day after the end of the postelection reporting period following the election in which the candidate was elected or defeated or from which the candidate withdrew.

B. The "end of the postelection reporting period" has the same meaning as defined under the Political Reform Act.

C. Surplus campaign funds shall only be used for the following purposes:

1. The payment of outstanding campaign debts.

2. The repayment of contributions.

3. Donations to the general fund of the City or to a bona fide charitable, educational, civic, religious, or similar tax-exempt, nonprofit organization where no substantial part of the proceeds will have a material financial effect on the former candidate or elected officer, any member of his or her immediate family, or his or her campaign treasurer.

4. Contributions to a political party committee, provided the campaign funds are not used to support or oppose candidates for elective office. Notwithstanding the preceding sentence, the campaign funds may be used by a political party committee to conduct partisan voter registration, partisan get-out-the-vote activities, and slate mailers as that term is defined under the Political Reform Act.

5. Contributions to support or oppose a ballot measure.

6. The payment for professional services reasonably required by the candidate controlled committee to assist in the performance of its administrative functions, including payment for attorney's fees and other costs for litigation that arises directly out of a candidate's activities, duties, or status as a candidate, including, but not limited to, an action to enjoin defamation, defense of an action brought for a violation of state or local campaign, disclosure, or election laws, and an action from an election contest or recount.

(Ords. 25257, 26440, 28212, 29642, 29793, 30687, 30768.)