So Gray Davis was one of the most successful fund raisers in the history of California politics. Now that he has been recalled, what happens to any of the $ that remain in his re-election fund (his “war chest”)? For that matter, what happened to Al Gore’s war chest money after his bid to become president failed? (I was going to say, “after he lost the election”, but I know that that phrasiology upsets some people 
).
I didn’t go through all the material (lots of it is pdf) but my fractured memory tells me that candidates who are defeated or do not seek re-election have several options. They may use the funds to retire campaign debts, transfer funds to the party with which they are affiliated, donate to other political candidates, donate the money to charity, refund it to donors or hold it in the account in anticipation of running for another office in the future. They may not pocket the money or use it for personal expenses.
My recollection is pre-McCain-Feingold so there may be some changes of which I’m not aware.
There may be additional state regulations which apply to Gray Davis.