On December 19, the Fair Political Practices Commission (FPPC) will consider proposed amendments to the materiality standard in both Regulations 18702.4 and 18702.5.

The proposed amendment to Regulation 18702.4 would set the appropriate materiality standards for economic interests in sources of gifts.

Standards would be such that a financial effect on a nonprofit source of income would be considered material if the source is a nonprofit organization that will be financially affected under the materiality standards applied to a nonprofit source of income interest.

The FPPC would also repeal the existing Regulation 18702.5 and adopt new language.

New language would update the materiality standard applicable to a personal financial effect for improved clarity and guidance.

Language would make that standard an objective, bright-line standard, met when a decision would have a personal financial effect worth $500 or more rather than when the official or the official’s immediate family member will receive a measurable financial benefit or loss from the decision.

The FPPC is accepting written comments on the proposals until December 17, 2019.

A San Francisco ballot measure intended to increase the restrictions on political contributions for campaign ads won easily on Tuesday.

Proposition F, the Sunlight on Dark Money measure, passed by 76% of the votes.

The proposition only needed a simple majority to pass.

The measure’s passage means greater disclosure of who is behind campaign advertisements paid for by PACs.

The top three largest donors of the committee paying for the advertisement must now disclose the name and amount contributed to the committee.

Proposition F will take effect 10 days after the election results are certified.

Rep. Katie Hill resigned from her 25th Congressional District seat after an investigation of allegations that she violated House ethics rules.

Gov. Gavin Newsom will have up to two weeks to set the date for a special election to fill the vacancy.

The special election could potentially coincide with the state’s March 3 primary election.

The Fair Political Practices Commission (FPPC) has revised the Campaign Disclosure Manuals.

Revisions were made to incorporate Disclose Act legislation, including updated ad disclosure charts.

There were also revisions made to reflect the new contribution limits that became effective on January 1, 2019, along with other non-substantive changes.

FPPC staff plans to present the updated manuals for approval at the November 21, 2019 meeting.

Interested persons may submit comments and suggestions by November 12.

Gov. Gavin Newsom signed a series of bills addressing lobbying and campaign finance transparency.

Assembly Bill 902 codifies current regulations into law, including regulations regarding filing deadlines, bookkeeping, and lobbyist registration.

Assembly Bill 201 broadens the definition of mass mailing to include campaign-related mass texting. Mass text messages are required to include the name or image of a candidate, or refer to a ballot measure.

Additional bills passed address campaign spending by candidate committees.

Senate Bill 71 prohibits the expenditure of funds in a legal defense fund campaign account to pay or reimburse a candidate or elected officer for attorney’s fees or other legal costs.

The bill also prohibits the use of campaign funds to pay for fines, penalties, judgments, or settlements, except as specified.

The bills become effective on January 1, 2020.

Gov. Gavin Newsom signed a campaign finance bill imposing limits on contributions to candidates for elective county and city offices in jurisdictions that have not independently imposed contribution limits.

Currently, a county or a city may, by ordinance or resolution, limit campaign contributions in local elections. However, many counties and cities have not imposed such limits.

Assembly Bill 571 establishes contribution limits of $4,700 per election to a candidate for elective office in a city or county in which the local government has not established a limit.

The bill also allows a local government to establish different limits that are more precisely tailored to the needs of the community.

Assembly Bill 571 becomes effective January 1, 2021.

The California Legislature adjourned the 2019 session on September 13.

Campaign Finance Bills Passed

The legislature passed several campaign finance bills during the session.

Assembly Bill 220 prohibits the use of campaign funds to pay for professional services not directly related to a political, legislative, or governmental purpose. The bill also authorizes the use of campaign funds to pay for child care expenses resulting from a candidate or officeholder engaging in campaign activities or performing official duties.

Assembly Bill 571 makes a technical, nonsubstantive change to a provision of the Political Reform Act of 1974. The provision prohibits candidates for elective state office or committees controlled by that candidate from making a contribution to another candidate for elective state office in excess of $3,000.

Senate Bill 71 prohibits the expenditure of funds in a legal defense fund campaign account to pay or reimburse a candidate or elected officer for attorney’s fees or other legal costs.

The bill also prohibits the use of campaign funds for fines, penalties, judgments, or settlements, except as specified.

Electioneering Bill Passed

Assembly Bill 201 broadens the definition of mass mailing to include campaign-related mass texting. Mass text messages will be required to include the name or image of a candidate or refer to a ballot measure.

Lobbying Bill Passed

Assembly Bill 902 codifies current regulations into law, including regulations regarding filing deadlines, bookkeeping, and lobbyist registration.

The last day for the governor to sign or veto bills passed by the legislature during the 2019 legislative session is October 13.

The Fair Political Practices Commission (FPPC) has unveiled a template contract for cities, counties, and districts allowing the FPPC to enforce local ethics and campaign finance laws.

The FPPC voted earlier this year to pursue agreements with localities to bring enhanced transparency and cost savings to local governments.

The template contract spells out the scope of work including advising, informing, auditing, and enforcing any local campaign finance and ethics ordinances, and the amount paid to the FPPC for such services.

The FPPC will ensure candidates and campaigns are following the rules and public officials are adhering to ethical standards.

Additionally, the FPPC will provide a service already in place so local governments don’t have to create their own.

The template contract can be found on the FPPC website.

On September 5, Gov. Gavin Newsom was presented with a bill codifying several current lobbying regulations into law.

Assembly Bill 902 codifies lobbyist regulations regarding filing deadlines, bookkeeping, and lobbyist registration.

If signed by the governor, the bill takes effect on January 1, 2020.

On October 18, the Fair Political Practices Commission (FPPC) will consider proposed amendments adding language to help determine when a committee reaches the 80% threshold for qualification as a sponsored committee.

The threshold will be determined by all contributions received by a committee in the preceding 24 months.

A committee will also be required to determine if it qualifies as a sponsored committee, or if a sponsor changed, at the time of filing each campaign statement.

The proposed amendments would also provide additional guidance regarding the appropriate terms which should be used to describe the industry or group affiliation of multiple sponsors.

The FPPC is accepting written comments on the proposals until October 16, 2019.

Four more states making changes to lobbying and ethics laws. Find out which jurisdictions in this edition of News You Can Use Video Digest!

A bill requiring a person who makes payments of $10,000 or more for electioneering or issue lobbying communications to make specified disclosures has passed the Assembly and has been sent to the Senate.

Assembly Bill 1217 would require a person making payments for electioneering or issue lobbying communications to disclose the names of the persons providing the funding for those payments and to maintain records to verify the accuracy of the required disclosures.

The bill would also amend and update the definitions of electioneering communication and issue lobbying communication.

If passed, the bill will take effect immediately.

The San Diego City Council passed an ordinance amending lobbying rules based on recommendations from the city Ethics Commission.

Ordinance 2019-148 modifies the definition of “activity expense” to include any payment made by a lobbyist to a city official if during the previous 12 months the lobbyist engaged in lobbying the city official’s department, agency, or city board.

The ordinance also changes the disclosure of employment-related activity expenses from specific dollar amounts to one of seven disclosure categories.

If signed by the mayor, the ordinance takes effect in 2020 when the first quarter filing is due.

Four more states making campaign finance and lobbying changes. Check out which states are passing legislation in this week’s NYCU Video Digest!