A. A person who believes a violation of § 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 § 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 § 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'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 § 24.2-948.9. The procedure to enforce a civil penalty provided in this section shall be as stated in § 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's ultimate determination of the complaint'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 § 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's motion taken as true are sufficient to show a violation of § 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'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'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's holding a public hearing on the matter, the complaint, the State Board's written notice, and any related records shall not be subject to the provisions of the Virginia Freedom of Information Act (§ 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'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'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 (§ 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 § 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 § 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'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 § 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 § 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 § 24.2-948.9. The procedure to enforce a civil penalty provided in this section shall be as stated in § 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'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 § 42.1-77, maintained permanently by the Library of Virginia. Electronic copies of such records shall be made publicly available on the State Board'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 (§ 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's website no later than three days after it has been issued.