An investigation by the Fair Political Practices Commission found that Kelly's campaign failed to accurately report more than $7 million in expenditures during his 2010 Democratic primary campaign, which he lost to Attorney General Kamala Harris.
The fine is on the agenda for approval at the commission's May 16 meeting.
A spokesman for Kelly's campaign wrote in an email that the the former Facebook chief privacy officer "cooperated with the investigation and has agreed to pay the minor administrative penalty levied for the one violation."
Kelly, who has remained active in policy issues related to public safety since his attorney general run, is part of a group of investors seeking to purchase the Kings to keep the team in Sacramento.
PHOTO CREDIT: Chris Kelly. Sacramento Bee file photo