Lawmakers approved a pair of bills to strengthen the authority of the Fair Political Practices Commission (FPPC) and require political nonprofits to reveal their donors. The Assembly approved Senate Bill 27, requiring tax-exempt nonprofits actively involved in elections to comply with campaign finance reporting requirements.

The bill also requires campaign committees raising more than $1 million to maintain an accurate list of the top 10 contributors of $10,000 or more. Those lists would be placed on the FPPC website before elections.

The Senate approved Assembly Bill 800 to give the FPPC more enforcement powers including the ability to audit campaign reports before elections and for two years after elections. Both bills return to their original house for votes on amendments.

If signed by Gov. Jerry Brown, the changes would be effective July 1, 2014.

Photo of the California State Capitol courtesy of Sascha Brückon Wikimedia Commons.

Following recent scandals involving the Legislature, the leader of the Senate has assembled a group of lawmakers to recommend changes in state ethics and campaign laws. Senate President Darrell Steinberg formed the Senate Ethics Working Group after controversies including allegations of bribery against Sen. Ronald Calderon and a proposed fine of $40,000 for campaign money laundering against Sen. Tom Berryhill.

In the Assembly, a recent six-figure fine against one of the state’s top lobbyists has motivated Assemblywoman Cristina Garcia to propose a ban on lobbyist in-home fundraisers.

Lobbyists currently may host private fundraisers in their home as long they cost less than $500, even though lobbyists cannot directly give more than $10 per month in gifts directly to elected officials.

The Board of Supervisors voted Tuesday, February 4, to pursue outsourcing the enforcement of political ethics to the state’s Fair Political Practices Commission (FPPC). Officials will ask the state Legislature to authorize the FPPC to enforce county ethics ordinances.

The unanimous vote was in response to a 2013 grand jury report titled, “A Call for Ethical Standards: Corruption in Orange County.”

Supporters of the approach cite San Bernardino County, which recently contracted with the FPPC to audit county campaigns and to prosecute ethics violations. The grand jury’s proposal would also give an independent authority the power to recommend ordinance changes concerning conflicts of interest, gifts, contract procurement, campaign finance, and lobbying.

On November 19, 2013, a special election was held to replace former mayor Bob Filner, who submitted his resignation amid scandal. Because no candidate received more than 50 percent of the vote, a runoff election is scheduled for February 11, 2014.

Individuals may contribute up to $1,000 to the mayoral candidates for the runoff election. Contributions from committees and corporations are not permitted in city elections.

Seal of San Diego courtesy of Zscout370 on Wikimedia Commons.

The Board of Supervisors unanimously approved revisions to the campaign finance reform ordinance. The changes were requested by the state Fair Political Practices Commission (FPPC), which enforces the county ordinance. Under the revised ordinance, contributions may be received for a general election before the primary has taken place, so long as the funds are set aside until after the primary.

The term “independent expenditure committee” will be removed from a section pertaining to electronic filing requirements for contributions of $10,000 or more and will be replaced with the more inclusive “other person, entity, or committee.”

The board also authorized new language in the ordinance giving the FPPC permission to give technical assistance to donors in the same manner it advises candidates.

The revisions are scheduled for final adoption on February 11, 2014.

City Council President Herb Wesson abandoned a plan to increase the value of gifts lawmakers can accept from companies seeking city contracts, opting to leave the amount unchanged at $100.

In October, City Council instructed the city’s lawyers to draft an ordinance increasing the gift limit to $150, despite a recommendation by the Ethics Commission to prohibit most gifts of any value.

The city’s ethics law will continue to bar lobbyists from giving gifts to elected officials and other high-level decision makers.

Those who do not have business before the city will continue to be permitted to give gifts to elected officials within the state limit of $440 per year. –

Gov. Jerry Brown issued a proclamation declaring a special election for Senate District 23. The primary will be held on March 25, 2014.

If no candidate receives a majority of the votes, a special general election will be held June 3, 2014.

The vacancy occurred following the resignation by Bill Emmerson. Senate District 23 includes portions of Los Angeles, Riverside, and San Bernardino counties.

The Ethics Commission has approved a regulation providing a method for candidates and campaign committees to comply with due diligence requirements of the pay-to-play restrictions.

Code section 1.126 prohibits a city or county contractor from contributing to a candidate who can determine whether a contract is awarded.

Regulation 1.126-7 will require the contributor to certify he or she is not an not an owner, director, officer, or named subcontractor of any entity currently negotiating or recently awarded a contract with the city, county, or other covered agency.

The regulation is effective January 24, 2014.

City Council instructed the city’s lawyers to draft an ordinance increasing the gift limit to $150 for gifts provided by bidders, contractors, and other restricted sources. Currently, people doing business with the city can provide gifts to city officials valued at $100 or less per calendar year.

Recently, the Los Angeles Ethics Commission recommended curtailing gifts to city officials, hoping to boost public confidence in government. The commission’s recommendation would have extended the current ban on gifts from lobbyists to all people with a financial stake in city decisions.

Photo of the Los Angeles City Hall by Brion Vibber on Wikipedia.

National:

Lobbying Bonanza as Firms Try to Influence European Union

New York Times – Eric Lipton Danny Hakim | Published: 10/18/2013

As the European Union has emerged as a regulatory superpower, its policies have become ever more important to corporations operating across borders. In turn, the lobbying business in Brussels has become larger and more competitive, rivaled only by Washington, D.C. Some say American law firms are undercutting efforts to bring more transparency to lobbying in the Belgian capital, citing lawyer-client confidentiality to evade a government-backed but voluntary disclosure effort.

State Pro-Business Organizations Are Publicly Funded, but Privately Controlled

The Center for Public Integrity – Nicholas Kusnetz | Published: 10/23/2013

Some states have given control over corporate tax incentives to public-private partnerships that are often run by the states’ most influential businesspeople. Supporters say these partnerships are more nimble than government bureaucracies and are insulated from electoral politics. But much of the spending remains secret. Even most public agencies do not disclose the recipients of all the incentives because of tax privacy laws.

Federal:

Cassidy Lobby Shop Goes Social

Washington Post – Catherine Ho | Published: 10/18/2013

With the lobbying business at a standstill on K Street, even big firms such as Cassidy & Associates have to embrace new ways of reaching policymakers and clients to protect their bottom lines. Cassidy has been trying to attract visitors to its Web site, which the firm has spent the last year overhauling to attract more potential clients through Twitter, Facebook, LinkedIn, and YouTube.

From the States and Municipalities:

Alabama – Alabama Considers Creating Election Commission

San Francisco Chronicle – Philip Rawls (Associated Press) | Published: 10/19/2013

Candidates have to report their contributions and expenditures to the Alabama secretary of state, but little is being done to make sure the reports are filed accurately. Some lawmakers said the solution could be to create a small state agency similar to the Federal Elections Commission.

California – FPPC Fines Arizona Group $1 Million for Campaign Finance Violations

Sacramento Bee – Laurel Rosenhall | Published: 10/24/2013

The California Fair Political Practices Commission levied a combined $1 million fine against Americans for Responsible Leadership and the Center to Protect Patient Rights for illegally funneling millions of dollars into a pair of ballot measure campaigns in 2012.

California – Riverside County Supervisors to Amend Campaign Finance Rules

Desert Sun; City News Service –   | Published: 10/22/2013

The Riverside County Board of Supervisors amended campaign finance regulations so candidates or PACs will, beginning January 1, 2014, have to electronically post details of a contribution within 10 days if the amount meets or exceeds $1,000. The revision affects candidates for assessor-clerk-recorder, auditor-controller, district attorney, judge, sheriff, supervisor, superintendent of schools, and treasurer-tax collector, as well as sponsors of ballot measures that are countywide in scope.

District of Columbia – Campaign Finance Reform Will Get D.C. Council Vote Next Month

Washington Post – Mike DeBonis | Published: 10/22/2013

The District of Columbia Council will vote on a package of campaign finance reforms as soon as November 5. The changes would restrict the ability of different companies owned by the same people to donate to the same candidate, require lobbyists to disclose their bundling of campaign contributions, and require political committees to report donations of $10,000 or more they believe to have been bundled, among other provisions.

Georgia – Commissioner: State auditor to handle ethics probe

Columbus Republic – Christina Cassidy (Associated Press) | Published: 10/22/2013

The Georgia Department of Audits and Accounts will investigate concerns surrounding the state ethics commission and its handling of complaints involving Gov. Nathan Deal. State Auditor Greg Griffin was initially appointed by the governor since the job became open outside of a legislative session. That connection to Deal drew criticism from Senate Minority Leader Steve Henson, who called the decision a “travesty of justice,” and said a special prosecutor would have been a better option.

Hawaii – Ethics Probe into Honolulu Mayor Sparks Talk of Reform

Honolulu Civil Beat – Nick Grube | Published: 10/18/2013

Ethical questions have been raised about a luau to celebrate the inauguration of Honolulu Mayor Kirk Caldwell, including whether it was a vehicle used by city contractors and lobbyists to curry favor with the new mayor. It has also opened up the debate over whether Honolulu’s ethics laws need to be strengthened to close any loopholes regarding gift-giving.

Michigan – Activists ‘Make it Rain’ in Michigan House, Drop Fake Million Dollar Bills on Lawmakers

MLive.com – Jonathan Oosting | Published: 10/23/2013

Anti-corruption protesters shouted from the Michigan House gallery as they showered state lawmakers with fake million dollar bills. The national group Represent Us says Michigan has one of the worst records of government corruption in the nation. It pulled a similar stunt in the New York Senate this June.

Montana – Montana Legislature Committee Hears Divide over Political Practices Job

The Missoulian – Charles Johnson | Published: 10/22/2013

The Legislature’s State Administration and Veterans’ Affairs Committee is studying Montana’s political practices office and looking at how other states regulate of campaign finances, ethics, and lobbyist and disclosure. Any recommendations will go to the 2015 Legislature for consideration. Those testifying before the committee offered divergent opinions about the role of the office and how it should be structured.

New York – Group Supporting Lhota Can Accept Unlimited Donations, Court Says

New York Times – Thomas Kaplan | Published: 10/24/2013

A three-judge panel of the U.S. Court of Appeals for the Second Circuit ruled a political committee created to support New York City mayoral candidate Joseph Lhota can accept contributions above the $150,000 annual limit for individuals set by state law. The judges said the state’s cap on donations to independent political groups was probably unconstitutional.

New York – New Bill Would Require Businesses Seeking State Contracts to Detail Donations to Governor

New York Daily News – Ken Lovett | Published: 10/22/2013

A bill introduced recently in the New York Legislature would require businesses seeking state agency contracts to make public a list of all campaign contributions made to the governor and others in the executive branch. Before any contract could be awarded, the companies would have to detail all donations from the business, its subsidiaries, key employees, and their spouses over the preceding 18 month period.

Texas – 5th Circ. Axes Texas Ban on Corporate PAC Donations

Law360.com – Jeremy Heallen | Published: 10/16/2013

The Fifth U.S. Circuit Court of Appeals ruled Texas cannot bar PACs from soliciting corporate donations, making it the fourth Circuit Court to uphold indirect corporate political contributions since the U.S. Supreme Court’s Citizens United ruling. Texans for Free Enterprise, a PAC that does not contribute directly to campaigns but solicits donations to run ads supporting or opposing candidates, had challenged the law.

Washington – Wash. AG Still Seeking Penalty against Food Industry Group That Didn’t Disclose Donors

Columbus Republic – Mike Baker (Associated Press) | Published: 10/22/2013

Washington Attorney General Bob Ferguson will move ahead with a lawsuit filed against the Grocery Manufacturers Association. Ferguson said he will still seek penalties from the group, which recently identified donors who contributed money to oppose a food labeling initiative. The attorney general said the case involved concealing a record-setting amount of donations and there must be sanctions for violating the law.

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The Board of Supervisors has amended campaign finance regulations to require candidates and committees to electronically disclose all contributions of $1,000 or more, whether made during or outside the 90-day election cycle. Effective January 1, 2014, a candidate or political action committee must electronically post details of a contribution within 10 days if the amount meets or exceeds the $1,000 threshold outside an election cycle.

Currently, only contributions of $5,000 or more need to be posted electronically if made outside an election cycle. Contributions of $1,000 or more made during an election cycle will continue to be filed electronically within 24 hours.

The ordinance is expected to comply with Assembly Bill 2452, a new state law allowing local governing bodies to require electronic disclosure for contributions, so long as the locality complies with state regulations.

The Santa Clara County Board of Supervisors unanimously passed a referral to request a draft lobbying ordinance in order to improve transparency and accountability in county procurements. County Counsel, Orry Korb, is tasked with reviewing existing lobbying regulations in other localities for drafting purposes. The referral specifically mentions San Jose’s lobbying ordinance as one with a proven track record and able to provide much of the necessary framework and language.

A presentation and consideration of a draft lobbying ordinance will be presented to the Finance and Government Operations Committee before a final version is brought to the full board in December, 2013.

Photo of the Santa Clara Government Center courtesy of Coolcaesar in Wikimedia Commons.

Gov. Jerry Brown has signed three bills sponsored by the state’s Fair Political Practices Commission (FPPC) designed to promote government transparency:

• Assembly Bill 409 creates an electronic filing system for public officials who file annual statements of economic interest (Form 700), allowing greater public accessibility to the statements;
• Assembly Bill 552 gives the FPPC greater authority to collect fines from individuals and entities who violate laws regarding campaign finance, lobbying, and conflicts of interest; and
• Assembly Bill 1090 allows the FPPC to give written or telephone advice to public officials about conflicts of interest in government contracts.

Assembly Bill 409 takes effect immediately. Assembly Bill 552 and Assembly Bill 1090 are effective January 1, 2014.

Gov. Jerry Brown has declared a special election for Assembly District 54. The primary will be held on December 3, 2013.

If no candidate receives a majority of the votes, a special general election will be held on February 4, 2014. The vacancy occurred following the resignation by Assembly Member Holly Mitchell.

Assembly District 54 is wholly contained in Los Angeles County.