                                 CODE OF VIRGINIA

(EFFECTIVE JULY 1, 2026) VIOLATIONS OF THE BAN ON PERSONAL USE OF CAMPAIGN
FUNDS; COMPLAINT; NOTICE; HEARING; CIVIL PENALTIES (§ 24.2-948.7)

A. A person who believes a violation of &#xA7; 24.2-948.6 has occurred and (i)
contributes to a candidate or his campaign committee that has allegedly
committed the violation or (ii) is qualified to vote in the election for the
office for which such candidate is running is qualified to file a complaint with
the Department. Such complaint shall be filed electronically or in writing on a
form provided by the Department, signed and sworn to by the person filing such
complaint, notarized, and made under penalty of perjury and subject to the
provisions of &#xA7; 24.2-1016. The complaint shall clearly identify the
complainant and the person against whom the complaint is addressed (the
respondent) and contain (a) a credible allegation of a violation of &#xA7;
24.2-948.6 with regard to a specific use of campaign contributions by the
candidate or his campaign committee, (b) attached documentation supporting the
allegation, (c) the names and contact information of any person the complainant
knows to have knowledge of facts relating to the allegation, and (d) any other
information required by the Department.
			The complaint form shall include a sworn statement, signed by the
complainant, agreeing to strict confidentiality regarding the complaint and all
related matters for the 10 days preceding the complaint&#8217;s submission. If
the State Board determines that the complainant knowingly violated his agreement
to strict confidentially, the State Board may assess a civil penalty in an
amount not to exceed $10,000. Any civil penalty collected under this provision
shall be payable to the State Treasurer for deposit into the Prohibited Personal
Use Enforcement Fund established pursuant to &#xA7; 24.2-948.9. The procedure to
enforce a civil penalty provided in this section shall be as stated in &#xA7;
24.2-946.3.
			The Department shall provide a copy of the complaint to the respondent within
24 hours of receipt. The Department shall complete its review of such complaints
and, within 10 days, transmit to the State Board any credible and complete
complaint from a qualified complainant and send written notice to the
complainant and respondent of the Department&#8217;s ultimate determination of
the complaint&#8217;s disposition. The State Board shall not act upon any
complaint that does not meet the requirements of this subsection but shall be
authorized to initiate an inquiry upon its own motion.

B. Upon receipt of a complaint or upon its own motion, the State Board shall
conduct a preliminary investigation into the specific use of campaign
contributions by the candidate. Such preliminary investigation shall be
conducted in closed meetings held pursuant to &#xA7; 2.2-3711. The State Board
shall determine, during its preliminary investigation, whether the facts stated
in the complaint or that serve as the basis of the State Board&#8217;s motion
taken as true are sufficient to show a violation of &#xA7; 24.2-948.6. If such
facts fail to give rise to such a violation, then the State Board shall dismiss
the complaint. If the facts give rise to such a violation, then the State Board
shall request that the complainant appear and testify under oath as to the
complaint and the allegations therein. If the inquiry was initiated by the State
Board&#8217;s own motion, the State Board may request that witnesses appear and
testify under oath as to the allegations raised by the State Board.
			The State Board shall notify the respondent that a preliminary investigation
has commenced within 24 hours of initiating such investigation. Before the State
Board conducts any vote on the complaint, other than a vote to dismiss, the
respondent shall have 30 days to provide to the State Board documentation or
other evidence that no action should be taken against the respondent on the
basis of the complaint or the allegations brought by the State Board. If the
respondent provides such documentation or such other evidence, the State Board
shall review the response and determine whether to proceed with the inquiry.
			After hearing testimony and reviewing any other evidence provided by the
complainant, witnesses, or the respondent, the State Board shall dismiss the
complaint if the State Board fails to find by a preponderance of the evidence
that such violation has occurred. If the State Board finds otherwise, it shall
proceed with the inquiry by calling for a public hearing.
			If at any point prior to the State Board&#8217;s call for a public hearing on
the matter the respondent pays back to the campaign committee from his personal
funds the amount that was allegedly converted to his personal use, the State
Board shall dismiss the complaint or motion and end the inquiry into the matter.
			Prior to the State Board&#8217;s holding a public hearing on the matter, the
complaint, the State Board&#8217;s written notice, and any related records shall
not be subject to the provisions of the Virginia Freedom of Information Act
(&#xA7; 2.2-3700 et seq.) and shall not be made public, except by the
respondent. However, once the State Board has commenced a public meeting to
further inquire into alleged conversion of campaign funds to personal use, its
materials, meetings, and hearings on the matter shall be open to the public.

C. If after such preliminary investigation the State Board determines to proceed
with an inquiry into the specific use of campaign contributions by the
respondent, the State Board (i) shall immediately notify in writing the
complainant and the respondent as to the fact of the inquiry and the allegations
against the respondent and (ii) shall schedule one or more hearings on the
matter. The respondent shall have the right to postpone the hearing if it is
scheduled within the 30 days immediately preceding an election in which the
respondent is a candidate for office. If the complaining party declines to
participate in the hearing, the complaint shall be dismissed and no further
action shall be taken.
			The respondent shall have the right to access all records obtained during the
investigation, present evidence, cross-examine witnesses, face and examine the
accuser, and be represented by counsel at any hearings. The State Board may
grant the respondent any other rights or privileges not specifically enumerated
in this subsection.
			If at any time the State Board determines that the complaint is without
merit, the State Board shall dismiss the complaint, so advise the complainant
and the respondent, and take no further action.

D. A decision to dispose of a complaint under this section shall require a vote
of four members of the State Board. Failure of the State Board to dispose of a
complaint within 120 days of the Department&#8217;s transmission of the signed
and sworn complaint shall result in the summary dismissal of the matter, after
which no further action shall be taken.
			Within 120 days of the Department&#8217;s transmission of the signed and
sworn complaint to the State Board or a motion to begin an inquiry, the State
Board may dispose of the matter in one of the following ways:

   1. If for any reason the State Board dismisses the matter during its
   preliminary investigation and prior to holding a public hearing on the matter,
   the State Board shall so advise the complainant and the respondent and take no
   further action. In such case, the records and findings on the matter shall not
   be subject to the provisions of the Virginia Freedom of Information Act
   (&#xA7; 2.2-3700 et seq.) and shall not be made public unless the respondent
   requests in writing that the records and findings be made public.

   2. If at any time after the commencement of the initial public hearing on the
   matter the State Board dismisses the matter, the State Board shall so advise
   the complainant and the respondent and prepare a written judgment stating the
   grounds for the dismissal.

   3. If after a public hearing the State Board determines by a preponderance of
   the evidence that the respondent has violated the provisions of &#xA7;
   24.2-948.6 but that the violation was not made willfully and knowingly, the
   State Board may require the respondent to repay an amount not to exceed the
   amount unlawfully converted to the personal use of the respondent. Respondents
   who claim an inability to repay the amount the State Board has determined is
   owed may be asked to provide documentation as to their financial condition.
   The State Board may negotiate a payment plan that enables a respondent to
   repay. The procedure to enforce repayment under this section shall be as
   stated in &#xA7; 24.2-946.3. The State Board shall prepare a written judgment
   stating its determination of the matter, its recommended remedy, and reasons
   therefor. A copy of the judgment shall be sent to each party and posted on the
   State Board&#8217;s website no later than three days after it has been issued.

   4. If the State Board determines by a preponderance of the evidence that the
   respondent willfully and knowingly violated any provision of &#xA7;
   24.2-948.6, the State Board shall direct the respondent to repay the amount
   unlawfully converted to his personal use. The State Board may also assess an
   additional civil penalty, in an amount not to exceed $1,000 per itemized
   expenditure found to be in violation of any provision of &#xA7; 24.2-948.6 and
   in no case greater than $10,000. Respondents who claim an inability to pay an
   appropriate civil penalty may be asked to provide documentation as to their
   financial condition. The State Board may negotiate a payment plan that enables
   a respondent to pay an appropriate civil penalty. Any civil penalty collected
   under this subdivision shall be payable to the State Treasurer for deposit
   into the Prohibited Personal Use Enforcement Fund established pursuant to
   &#xA7; 24.2-948.9. The procedure to enforce a civil penalty provided in this
   section shall be as stated in &#xA7; 24.2-946.3. The State Board shall prepare
   a written judgment stating its determination of the matter, its recommended
   remedy, and reasons therefor. A copy of the judgment shall be sent to each
   party and posted on the State Board&#8217;s website no later than three days
   after it has been issued.

   5. Any records and findings related to a complaint that was not dismissed
   pursuant to subdivision 1 shall become archival records, as defined in &#xA7;
   42.1-77, maintained permanently by the Library of Virginia. Electronic copies
   of such records shall be made publicly available on the State Board&#8217;s
   website no later than 30 days after a final disposition of the matter has been
   decided.

E. A person found by the State Board to have violated the provisions of this
section shall have a right to the direct review of the finding by a court of
competent jurisdiction as provided in the Administrative Process Act (&#xA7;
2.2-4000 et seq.). The provisions of the Administrative Process Act shall not
otherwise apply, however, to the finding of a violation by the State Board
pursuant to this section.

F. The State Board may, by a vote of four members, make a finding that a
complaint is frivolous. Such a finding shall be prima facie evidence of abuse of
process by the complainant. The State Board shall prepare a written judgment
stating its determination of the matter and reasons therefor. A copy of the
judgment shall be sent to each party and posted on the State Board&#8217;s
website no later than three days after it has been issued.

HISTORY: 2025, cc. 535, 537.