The Fair Political Practices Commission has issued notice of proposed amendments to the California Code of Regulations to be considered at a public hearing on December 8, 2011. The proposed regulations codify commission guidance instructing filers to treat an in-kind contribution of the services of salaried personnel to a committee and the expenditure by the person making the salary payment as a contribution made on the payroll date of the salaried personnel.

The commission will also consider regulations which differentiate a contribution from a donation. Under the proposed regulation, a contribution is a payment made for a political purpose and includes payments to a multi-purpose organization. By contrast, a payment to a multi-purpose organization that is not made or used for a political purpose is to be treated as a donation and not a contribution for the purposes of identifying reportable contributions.

Lastly, the commission will consider amendments to the provisions pertaining to primarily formed and general purpose committees to assist filers in determining which label fits the purpose and structure of their committee.

The regulations define a general purpose committee as an ongoing committee which supports multiple candidates and measures in successive elections. General purpose committees include associations, political action committees, political party committees, major donors, as well as entities and individuals making independent expenditures.

The regulation proposes a standard for determining whether a committee is a state, county, or city general purpose committee. A committee will be considered a city or county committee if more than 70 percent of their activity is at the city or county level. Classification as a state committee will be the default.

Pursuant to the proposed regulation, a primarily formed committee is a committee formed or existing to support a single candidate or measure in a specific election. A committee will be considered primarily formed if more than 70 percent of the committee’s contributions and expenditures are for specific candidates or measures during the 24 months preceding the date where the candidate or measure is on the ballot.

Image of the Seal of California by Zscout370 on Wikipedia.

The Riverside County Board of Supervisors has approved ordinance number 913 which makes electronic campaign finance disclosure mandatory for candidates, candidate controlled committees, and independent committees which receive contributions or make expenditures of $5,000 or more.

Once the electronic reporting threshold has been met, all subsequent reports must be filed electronically.

The ordinance will take effect on November 28, 2011.

The San Francisco Ethics Commission has approved amendments to the campaign finance reform ordinance. The language of the amendments is forthcoming and will be approved by the commission at the November 14, 2011 meeting.

Amendments that were proposed and approved at the October 19, 2011 commission meeting include disclaimer, disclosure, and reporting requirements for communications that are paid for by third parties concerning candidates for city elective office, an affirmation of the $500 per person contribution limit to candidates, and permission for campaign funds to be used by a candidate to attend a fundraiser for a charitable organization. The commission also approved a provision which will allow the commission to modify the $500 limit to reflect the consumer price index for future elections.

The commission further clarified that a candidate may transfer funds from the candidate’s committee only before the funds become surplus.

The San Jose City Council voted unanimously on Tuesday, October 18 to change the city’s campaign finance laws. Changes approved include the elimination of the city’s blackout periods which prohibit campaign contributions within 17 days of a regular election and within seven days of a special election.

Per the new law, the voluntary candidate campaign expenditure limits will increase from $1.00 per resident per election to $1.25. The rate for mayoral elections will remain the same at $0.75 per resident per election.

Further changes implemented by the new law eliminate an increase in the voluntary expenditure cap triggered by the fundraising efforts of other candidates and independent committees who do not choose to accept the limit.

The Torrance City Council will consider recommendations to revise its ethics laws at the October 18, 2011 city council meeting.

The recommendations to be considered include amending the code of ethics to extend to candidates for elective office and adopting guidelines which include a voluntary ethics course and ethics pledge for elected officials, appointed officials, and candidates for elective office.

California Governor Jerry Brown has signed senate bill 398 into law. The bill alters definitions and reporting requirements for those who do business with the board of a public pension or retirement system to manage securities or other assets and went into effect upon signature.

Specifically, the new law modifies the definition of external managers to mean a person who is seeking to be, or is, retained by a board or an investment vehicle to manage a portfolio of securities or other assets for compensation, or a person who manages an investment fund, and who offers or sells, or has offered or sold an ownership interest in the investment fund to a board or investment vehicle. The law also alters the definition of a placement agent to a person directly or indirectly hired, engaged, or retained by, or serving for the benefit of or on behalf of, an external manger and who acts or has acted for compensation as a finder, solicitor, marketer, consultant, broker, or other intermediary in connection with the offer or sale to a board or investment vehicle either the investment management services of the external manager or an ownership interest in an investment fund managed by the external manager.

Additional changes made as the result of the new law include the exemption of placement agents from any requirements imposed by a local government agency, including lobbyist registration and reporting, if the placement agent is an employee, officer, or director of an external manager, or of an affiliate of an external manager, and the external manager is registered as an investment adviser or a broker-dealer with the Securities and Exchange Commission or any state securities regulator. Further, placement agents are exempt from local requirements if the external manager is participating in a competitive bidding process, such as a request for proposal, or has been selected through a competitive bidding process and is providing services pursuant to a contract executed as a result of that bidding process, or when the external manager, if selected through competitive bidding, has agreed to a fiduciary standard of care for the contract.

State Senator Lou Correa is planning to introduce legislation that would make members of the public who are appointed to serve on boards subject to the state’s revolving door provision.

The legislation would require that all board members wait 12 months after terminating board service before lobbying their former colleagues.

Photo of the California Senate chamber by David Monniaux on Wikipedia.

The San Bernardino County supervisors voted to endorse a plan to limit campaign contributions at their September 27, 2011 meeting. The supervisors further voted to direct the county counsel’s office to draft an ordinance to be voted on by the supervisors at a future meeting.

The current plan would allow individuals to donate up to $3,900 per election cycle. Small contributor committees would be permitted to donate $7,800 per election cycle.

Two San Bernardino County supervisors will introduce a proposal at the Board of Supervisors meeting on September 27, 2011 which would create a law regulating political contributions for county elections.

The supervisors hope to impose and enforce limits on contributions from individuals, businesses, and political action committees contributing to county elections.

The image of the San Bernardino County Seal by Jetijones on Wikipedia.

The Riverside County Board of Supervisors will be considering a proposal today which would make electronic filing mandatory for all campaign finance reports filed by candidates and PACs.

The county registrar of voters presently has a system that allows for electronic filing; however, use of the system is optional.

The move to mandatory electronic filing is being proposed as a mechanism to increase transparency.

On this day in history 161 years ago, September 7, 1850, California was admitted to enter into the Union as a free state as part of the Compromise of 1850.

Two days after the House passed the bill, President Millard Filmore signed the measure into law, allowing California to enter the union as the 31st state on September 9th.

Read more from The Office of the Clerk.

The Fair Political Practices Commission will hold an interested persons’ meeting on Tuesday, September 13, 2011 at 10:00 a.m. to discuss the proposed text message contribution regulation.  The commission has also issued a notice to adopt the text message regulation at a public hearing to be held on or after October 13, 2011.

The proposed regulation permits candidates and committees to raise funds through low-dollar text message contributions. For the purposes of the regulation, contributions are deemed to be received on the date that a mobile fundraising vendor, acting as an agent of the candidate or committee, obtains possession and control of the funds. Once received by the mobile fundraising vendor, contributions must be promptly reported to the candidate or committee’s treasurer or a designated agent thereof no later than the closing date of any campaign statement the candidate or committee is required to file.

For text message contributions of less than $25, candidates and committees will be required to maintain the dates and daily totals of contributions. For contributions exceeding $25 but less than $100, the proposed regulation requires that candidates and committees record the full name and street address of the contributor, the cumulative amount received from each contribution, and any information regarding an intermediary where applicable. When a contribution exceeding $100 is received, the regulation requires that the candidate or committee maintain a record of the contributor’s name and address, occupation, employer, the cumulative amount received from the contributor, and any information regarding an intermediary where applicable.

Under the proposed regulation, a contribution made by text message will be attributed to the person who is subscribed to the cell phone number from which the contribution is received.

Implementation of Measure H, a campaign finance reform approved by voters earlier this year, has been delayed by the Los Angeles City Council.

Measure H bans campaign contributions from contractors to elected officials responsible for reviewing proposals for city work valued at $100,000 or more.

Photo of the Los Angeles by BRION Vibber on Wikipedia and the Seal of Los Angeles by Mysid on Wikipedia.

The Fair Political Practices Commission has issued a notice to adopt two new regulations. The commission has also announced it will hold a public hearing on September 22, 2011 to consider the proposed regulations. The regulations to be considered have previously been made available for public comment and have since been revised.

The first proposed regulation to be considered modifies the reporting requirement for payments made at the behest of an elected officer which is made principally for a legislative, governmental, or charitable purpose in the aggregate amount of $5,000 or more. The regulation requires that a behested payment report be filed within 30 days of the date the payment is made. The Commission is considering whether a communication made on behalf of a charity which results in a donation is a behested payment.

The second proposed regulation would allow committees that have terminated to accept refunds from governmental entities and unexpected refunds from any other entities totaling $10,000 or less after termination of the committee. It would also permit terminated committees to transfer refunds to other committees without having to reopen the terminated committee. Refunds that are transferred to a new committee would be reported as if they had been received prior to termination and attributed accordingly when transferred to the new committee.

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