California politicians convicted of a crime will no longer be able to use campaign funds to cover legal expenses.

On Sept. 26, Gov. Gavin Newsom signed AB 2803 into law, which closes a campaign finance loophole that former Anaheim Mayor Harry Sidhu used last year to pay his criminal defense attorney amid an FBI political corruption probe.

According to campaign finance documents, Sidhu made a $300,000 payment to attorney Paul Meyer in 2022 from funds raised for his reelection.

Before that, he resigned as mayor a week after an FBI affidavit accused him of bribery, fraud, obstruction of justice and witness tampering.

Assemblyman Avelino Valencia (D-Anaheim), who had publicly called on Sidhu to step down when he served on Anaheim City Council alongside him, introduced the bill in February.

“What Sidhu did was unacceptable and unethical considering the crimes that he was being charged with,” Valencia said. “I don’t think supporters of candidates intended for their money to go towards defending politicians against criminal charges.”

Sidhu eventually pleaded guilty to four felonies, including charges connected to the attempted sale of Angel Stadium, at the Ronald Reagan Federal Courthouse in Santa Ana last September.

“Yes, I’m guilty,” Sidhu said when he entered his plea. “I did lie to the FBI.”

But the former Anaheim mayor is not the sole politician in the state to have exploited the campaign finance loophole.

Former state Sen. Leland Yee paid his legal team $128,000 from campaign committee funds for his secretary of state bid before pleading guilty to racketeering in 2015.

Sean McMorris, ethics program manager for Common Cause, noted the new law as one that is narrowly tailored but important in strengthening the Political Reform Act that was first enacted 50 years ago.

“There are bad actors,” he said. “If you do want to deter them and make ethics laws more important, one way to do that is not allow them to use campaign funds to pay off legal fees or penalties. This is good in that it’s expanding that for felonies as well as bribery.”

Under the new law, if politicians are convicted of a felony among other select crimes, they will be required to pay back donors for any funds diverted to legal expenses.

The law doesn’t cover legal defense funds, which politicians are legally allowed to open and raise money for without contribution limits.

Former state Sen. Ron Calderon and former state Sen. Roderick Wright raised funds through such committees.

“That’s still a loophole,” McMorris said.

The bill, which was co-sponsored by state Sen. Tom Umberg (D-Santa Ana) and Assemblyman Phil Chen (R-Yorba Linda), marks another anti-corruption effort for Valencia, who chairs an Assembly accountability and oversight subcommittee.

He previously ordered a state audit of contracts between Visit Anaheim and the Anaheim Chamber of Commerce after an independent corruption report alleged the two organizations engaged in a grafting scheme involving $1.5 million in COVID-19 relief funds.

Newsom also last month signed into law AB 2946, a Valencia-backed bill that requires a majority vote by the Orange County Board of Supervisors before discretionary funds can be awarded.

The legislation comes in the wake of a political corruption scandal involving $13 million in public funds directed by Supervisor Andrew Do to Viet Society America, which a county lawsuit now alleges was embezzled by the nonprofit that also employed Do’s daughter.

In closing the loophole exploited by Sidhu, Valencia hopes to protect the intent behind campaign contributions.

“It’s another step in ensuring good government, transparency and ethics in public service,” he said of the new law. “It doesn’t solve some of the gaps still kept in the system, but it’s a step closer for sure.”

Whether you’re facing big financial decisions or just feeling curious about good money management practices, an experienced money expert can offer valuable insights. Unlike professional advisors who might create financial plans or directly manage your investments, financial mentors usually serve as more informal financial guides and educators.

Read More: How Much Money Do Americans Have in Their Bank Accounts in 2024?

Check Out: 9 Easy Ways To Build Wealth in 2024

Here are four key signs you might need a financial mentor.

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You Struggle With Everyday Financial Management

If you have trouble setting financial goals, managing a budget or paying off your debt, a financial mentor can look at your current financial picture and offer custom advice on how to be more successful moving forward.

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You’re Considering Major Financial Moves

Navigating major financial moves like starting a business, buying a home, or beginning to invest can be challenging. If you’re unsure whether you’re financially ready or you aren’t sure where to start, you may need a financial mentor who considers your finances and educates you on the steps involved.

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You Need To Improve Your Financial Literacy

According to a 2024 TIAA Institute-Global Financial Literacy Excellence Center report, only 48% of U.S. adults are financially literate. Although you might not have major financial issues now, financial knowledge gaps could later hurt your stability or limit opportunities to build wealth.

A financial mentor can be a low-cost option for learning the basics – such as budgeting, handling credit responsibly and saving – and getting answers to your money questions. Plus, they could help demystify estate planning, insurance and other complex topics.

You Need Some Accountability

Even if you know the basics of managing money, you might struggle with applying your skills or sticking to your plans. Differing from short-term financial coaches, financial mentors can provide long-term accountability and support that keeps you motivated to achieve your financial goals.

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Since you’d have someone to turn to if you feel stuck, you might give up less often. Plus, scheduling regular check-ins with your financial mentor could push you to make progress you can share.

More From GOBankingRates

This article originally appeared on GOBankingRates.com: 4 Key Signs You Need a Financial Mentor

GOLDEN, Colo., Oct. 01, 2024 (GLOBE NEWSWIRE) — SHF Holdings, Inc., d/b/a/ Safe Harbor Financial (“Safe Harbor” or the “Company”) (NASDAQ: SHFS), a leader in facilitating financial services and credit facilities to the regulated cannabis industry, announced today that its management team will participate in the Benzinga Cannabis Capital Conference being held October 8-9, 2024, in Chicago.

Sundie Seefried, Safe Harbor’s Chief Executive Officer and President, will participate in a panel discussion titled “Cannabis Cash Flow: The Fed’s Impact on Opportunities and Challenges in Macro-Economic Trends” on Tuesday, October 8, 2024 at 10:10 a.m. Central Time.

The Company will host one-on-one investor meetings throughout the conference. For more information or to schedule a meeting, please contact SafeHarbor@kcsa.com.

About Safe Harbor
Safe Harbor is among the first service providers to offer compliance, monitoring and validation services to financial institutions, providing traditional banking services to cannabis, hemp, CBD, and ancillary operators, making communities safer, driving growth in local economies, and fostering long-term partnerships. Safe Harbor, through its financial institution clients, implements high standards of accountability, transparency, monitoring, reporting and risk mitigation measures while meeting Bank Secrecy Act obligations in line with FinCEN guidance on cannabis-related businesses. Over the past eight years, Safe Harbor has facilitated more than $23 billion in deposit transactions for businesses with operations spanning over 41 states and US territories with regulated cannabis markets. For more information, visit www.shfinancial.org.

Cautionary Statement Regarding Forward-Looking Statements
Certain statements contained in this press release constitute “forward-looking statements” within the meaning of federal securities laws. Forward-looking statements may include, but are not limited to, statements with respect to trends in the cannabis industry, including proposed changes in U.S and state laws, rules, regulations and guidance relating to Safe Harbor’s services; Safe Harbor’s growth prospects and Safe Harbor’s market size; Safe Harbor’s projected financial and operational performance, including relative to its competitors and historical performance; new product and service offerings Safe Harbor may introduce in the future; the impact volatility in the capital markets, which may adversely affect the price of the Company’s securities; the outcome of any legal proceedings that may be instituted against Safe Harbor; other statements regarding Safe Harbor’s expectations, hopes, beliefs, intentions or strategies regarding the future; and the other risk factors discussed in Safe Harbor’s filings from time to time with the Securities and Exchange Commission. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “outlook,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “would,” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. These forward-looking statements involve a number of risks and uncertainties (some of which are beyond the control of Safe Harbor), and other assumptions, that may cause the actual results or performance to be materially different from those expressed or implied by these forward-looking statements.

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Contact Information
Safe Harbor Media
Nick Callaio, Marketing Manager
720.951.0619
Nick@SHFinancial.org

Safe Harbor Investor Relations
ir@SHFinancial.org

KCSA Strategic Communications
Phil Carlson
safeharbor@kcsa.com