Gov. Newsom signed a bill with disclosure requirements for political committees creating, originally publishing, or originally distributing a qualified political advertisement.

A qualified political advertisement is an advertisement containing any image, audio, or video generated or substantially altered using artificial intelligence.

Assembly Bill 2355 requires the disclosure of a qualified political advertisement to be appear at the top of the disclosure area and to be separated from the other required disclosures by a blank line.

The bill becomes effective January 1, 2025.

The Board of Supervisors passed an ordinance increasing local campaign contribution limits for corporations, PACs, and individuals who give to candidates and their committees.

Ordinance No. 4479 increases the current limit of $5,500 per election cycle to $10,000 per year.

The limit for political parties contributing to candidates jumps from $5,500 per election cycle to $100,000 per year.

A newly created oversight committee will be responsible for enforcing the new rules.

The county previously operated under the state’s default campaign contribution limits but localities are able to set their own limits.

The ordinance will be effective October 11 and will only apply to contributions made to, or received by, a candidate on or after the effective date.

Senate Bill 1243 was recently passed by the Legislature and will be sent to the governor for approval or veto.

The bill raises the threshold of contributions governed under the pay-to-play Levine Act from $250 to $500.

A section of the bill also clarifies a contribution from an agent which exceeds $500 will not be aggregated with contributions from a party or participant.

The period for which an officer may cure a violation is increased from 14 to 30 days.

Additional definitions are added for pending and agent, while definitions are amended for participant and license, permit, or other entitlement for use.

Senate Bill 1243 is effective January 1, 2025, dependent upon changes proposed in Senate Bill 1181 being enacted first.

Q: My employer makes corporate contributions in California. We have not yet exceeded $10,000 in calendar year 2024. The primary election is in March, along with the general election in the fall. If we decide to make contributions, when do we have a late contribution report due?

A: The California “Late Contribution Report” [Form 497], sometimes referred to as the “24-hour report” is due during the 90-day period preceding any election if all of the following criteria are met:

• The contribution is $1,000 or more, or multiple contributions aggregating $1,000 or more, to a single candidate, ballot measure committee, or political party. This includes non-monetary and in-kind contributions;
• The corporation making the contribution must have already qualified as a major donor or the contribution made during the 90-day period before the election puts it over the $10,000 threshold and it becomes a major donor; and
• The recipient candidate or ballot committee must appear on the ballot at the election for which the 90-day period applies.

Contributions to political parties made during the 90-day period are also included. Contributions to PACs are not.
We are currently in the 90-day period for the March 5 primary election. The 90-day period for the November 5 general election begins August 7. Currently, no special elections are scheduled, but if one is, this triggers a new 90-day period. Check with the Fair Political Practices Commission for the exact dates of the 90-day period.

The filing requirements for Form 497 are:

• The report is due within 24 hours of making the contribution. The contribution is made on the date it is mailed, hand-delivered, or otherwise transmitted to the candidate, ballot measure committee, or political party.
• The report must be filed electronically with the California Secretary of State, Political Reform Division. No paper report is required.
• If a report is due on a Saturday, Sunday, or official state holiday, the 24-hour deadline is extended to the next business day. However, the Form 497 must be filed within 24 hours on a Saturday, Sunday, or an official state holiday when the report is due the weekend immediately prior to an election. For example, if a donor makes a contribution on the Saturday before the election, the Form 497 is due on Sunday.

As a reminder, the late contribution must still be reported on the next major donor report that is due. In 2024, major donor reports are due July 31 for the period covering January 1 to June 30; and January 31, 2025, for the period covering July 1 to December 31.

For more information, be sure to check out the “Registration and Reports Required” section of the U.S. Political Contributions Compliance Laws online publication for California. Please feel free to contact us if you have any questions.

The City Council recently passed an ordinance codifying lobbyist registration fees and fee penalties.

The registration fee is $500 with a late filing fee of $10 per day for registrations and reports and a fee cap of $1,000.

The ordinance also implements a partial or complete waiver of registration fees for a local governmental lobbyist who, along with other criteria, is a salaried employee of an organization or association that is a 501(c)(3).

The ordinance also establishes a lobbyist training requirement and lobbyists must complete an online training session offered by the Public Ethics Commission with 60 days of initial registration.

Quarterly reports will now be due no later than the last day of the month following the end of each calendar quarter.

This ordinance is effective immediately.

Gov. Gavin Newsom has picked Laphonza Butler to fill Dianne Feinstein’s Senate seat.

Butler is the current president of Emily’s List, a national political organization that focuses on electing Democratic women who support abortion access.

She previously served as president of a labor union and as an advisor to Kamala Harris’ 2020 presidential campaign.

Butler also has political ties to Newsom, as she was a partner in the political consulting firm now known as Bearstar Strategies that is run by the governor’s veteran strategists Ace Smith, Sean Clegg, and Juan Rodriguez.

Butler is only a short-term caretaker of the seat, with the position being voted on the 2024 ballot.

None of the three front runners were chosen for the appointment. Newsom stated he did not want to play favorites ahead of the 2024 election.

Dianne Feinstein passed away at the age of 90.

Feinstein’s death leaves a vacant U.S. Senate seat, requiring Gov. Gavin Newsome to appoint a temporary successor.

Feinstein started her public service career as president of San Francisco’s Board of Supervisors in 1978. She was also appointed Mayor of San Francisco before winning a special election for her U.S. Senate seat.

During her decades-spanning career, she was a major gun-control advocate, helped create the AMBER alert network, and sponsored bills protecting millions of acres of California desert.

She declared earlier this year she would not seek reelection at the end of her term in 2024.

Gov. Gavin Newsom signed Senate Bill 678 into law on September 1.

Senate Bill 678 requires a person paid by a committee to post content online supporting or opposing a candidate or a ballot measure to include a disclaimer stating they were paid to make the post.

This bill targets “influencers” and follows California’s recent trend on curtailing social media’s influence on elections.

The bill will become effective January 1, 2024.

The Oakland Ethics Commission passed a Master Fee Schedule including a newly added annual lobbyist registration fee of $500 and a late filing fee of $10 per day for registrations and reports.

The City Council approved the inclusion of the additional fees in the annual Master Fee Schedule yearly update.

Currently, the Ethics Commission is seeking to alter the new fee structure.

The commission is seeking to waive fees for 501(c)(3) organizations with less than $750,000 in annual revenue; a reduction of fees with less than $200,000 in annual revenue; and a reduced fee for third and fourth quarter registrants.

The new proposal has been sent to the City Council for their approval.

The 9th U.S. Circuit Court of Appeals found that California’s Government Code §3205, which bars employees of local governmental entities from soliciting political contributions from coworkers but places no such restriction on state employees, is unconstitutional.

U.S. Circuit Judge Marsha S. Berzon held the statute’s discrimination against local employees is not justified under any arguably applicable standard.

Berzon specified that the case, Progressive Democrats for Social Justice v. Bonta, was decided on First Amendment principles, not equal protection concerns.

The Fair Political Practices Commission has passed multiple regulations clarifying Senate Bill 1439 and Political Advertising.

The regulations dealing with Senate Bill 1439 focus on who is disqualified and how an officer would know a donor has a financial interest in a proceeding before the officer.

Regulations revising political advertising add additional disclosures and adds regulations to less-used methods of communication.

San Diego, California’s contribution limits have been adjusted for the 2024 election cycle due to inflation. The maximum donation an individual can make to a candidate in a City Council race has increased from $650 to $750 and the donation limit to candidates for mayor and city attorney has increased from $1,200 to $1,350. This change is one of the largest adjustments in San Diego’s history, following historic inflation of around 7% during the two years since the contribution limits were last increased.

Nicolas Heidorn has been hired as the new executive director of the City of Oakland Public Ethics Commission. Heidorn previously worked as chief consultant of the California State Senate Elections and Constitutional Amendments committee and as legal director of the government watchdog group California Common Cause. Currently, Heidorn operates a consulting firm that focuses on election reform policy and has spearheaded Oakland’s Democracy Dollars program. With the city’s budget problems tightening the mayor’s budget, Heidorn has been brought in to navigate the program’s delayed rollout and the commission’s bloated caseload.

The City Council has voted to raise contribution limits for the 2023 biannual.

The increase reflects changes in the Consumer Price Index for All Urban Consumers (CPI-U).

Contribution limits for councilmembers increased to $2,050 per person and $6,800 per Large Political Committee, and limits for mayor increased to $4,050 per person and $13,550 per Large Political Committee.

Aggregate off-year contributions have been raised to $34,000 and $67,900 per councilmember and mayor, respectively.

The legal defense fund contribution limit has been raised to $1,350 for councilmembers and mayors.