Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a)
Except as provided in subdivision (b), an extension of credit which consists of
a receipt of goods or services pursuant to an agreement between the provider of
the goods or services and a candidate or committee, and where payment is not
made until a later date, is a contribution subject to Government Code section
85307(a).
(b) For purposes of Government Code section
85307(a),
an extension of credit is not a contribution made by the provider of the goods
or services or a contribution accepted by the candidate or committee if either
subdivision (b)(1) or (b)(2) of this regulation is met:
(1) Payment is made on or before the earlier
of the following dates:
(A) 45 days after the
date of the invoice; or
(B) 45 days
from the date the goods or services are delivered; or
(C) For services ongoing in nature, 45 days
after the date of the invoice, where services are billed no less frequently
than on a three-month billing cycle.
(2) All of the requirements of subsections
(b)(2)(A)-(E) of this regulation are met:
(A)
The credit arrangement is recorded in a written instrument;
(B) It is a regular business of the provider
of goods or services to provide similar goods or services;
(C) The provider provides the goods and
services in the ordinary course of business and on the same terms and
conditions offered to customers generally;
(D) The provider of goods or services enters
into the agreement with the intent that the candidate or committee be required
to pay in accordance with terms of the agreement and does not have actual
knowledge that the candidate or committee would not be able to pay in
accordance with those terms; and
(E) The provider of goods or services makes
reasonable efforts to collect the full amount of the payment owed within four
months of the date that the payment for the goods or services is due under the
terms of the agreement. Reasonable efforts to collect the full amount of the
payment may be demonstrated even if:
(i) The
provider does not exhaust all available legal options; or
(ii) The provider accepts less than the full
amount of the payment owed by the candidate or
committee.
1. New section
filed 7-20-2005; operative 8-19-2005 (Register 2005, No. 29). For prior
history, see Register 2001, No. 18.
Note: Authority cited: Section
83112,
Government Code. Reference: Section
85307,
Government Code.
