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.

The Fair Political Practices Commission (FPPC) of California voted to allow contributions to political candidates in cryptocurrency.

Until now, contributions made in cryptocurrency were banned under all circumstances.

Under the new regulation, the contribution must immediately be converted into dollars upon making the contribution and the cryptocurrency must be processed through an exchange registered with the U.S. Department of Treasury, Financial Crimes Enforcement Network.

An exchange is the marketplace where cryptocurrency is converted to different types of tender, including USD and the exchange can charge transaction fees.

The limits on cryptocurrency are the same as any non-cash contribution.

When reporting cryptocurrency contributions, the amount of the contribution is the fair market value of the cryptocurrency at the time the exchange obtains possession of the contribution and any amounts charged or withheld by the exchange must be reported by the committee as expenditures at the time the fees are deducted or charged.

The California Fair Political Practices Commission (FPPC) passed regulations regarding reporting payments for online communications and accounting of lobbying entities.

Regulation 18421.10 seeks to shed light on social media manipulation by “purchasers” and “bots.”

Under the new rules, committees who pay more for exposure on social media will have to disclose the amount spent and the type of manipulation bought, whether it is for more likes, followers, or shares.

Regulation 18612 replaced the old regulation, increasing the reporting requirements and clarifying the style (i.e., journal, ledger, or record) of record keeping.

Similarly, the FPPC amended Regulation 18610 and Regulation 18615 involving lobbyist accounting and lobbyist employer accounting.

Both amended regulations and 18612 clean up the language of the regulation and heighten the record-keeping requirements mandated by the state.

The Fair Political Practices Commission (FPPC) has announced that on October 21 the Commission will consider proposed regulations concerning behested payment reporting.

The regulation seeks to shed light on a growing problem occurring in California elections, large donations being made to candidate-controlled charities in place of trackable political contributions.

The regulation, prospectively codified as § 18424.3, would increase the reporting requirements to the behested payment report.

The regulations will require more detailed disclosures as to the name of the payor and the “single source” of the behested payment.

The California Fair Political Practices Commission (FPPC) met on July 15 to discuss new regulations concerning behested payments.

A campaign finance watchdog report noted in a report there has be a substantial rise in donations to charities that have a connection to a candidate or committee via behested payments.

Currently, there are no reporting requirements if a donation is given to a charity that has ties with a candidate or committee.

The pending regulations seek to shed light on who is making these donations and what candidate or committee is tied to the charity receiving the donation.

The FPPC only has the regulatory authority to make rules that require disclosure, any rules prohibiting such donations must come from the Legislature.

Formal voting and hearings over the proposed regulations are set to occur in September.

The Fair Political Practices Commission (FPPC) updated their regulations regarding local campaign contribution limits due to Assembly 571.

The updates will add language to the regulations regarding candidates for elective city or county offices subject to the state contribution limits.

Those local candidates and their committees will now be subject to the regulations regarding reporting of contributions and expenditures, establishing campaign accounts, solicitation of funds, loans, terminations, and other regulations related to campaign finance.

These regulations do not apply to candidates for an elective city or county office or the candidate’s controlled committee prior to January 1, 2021.

In a recent case, a Superior Court Judge ruled in favor of the Fair Political Practices Commission (FPPC).

The judge upheld its authority to require disclosure of public money by public entities during an election campaign.

The FPPC faced a challenge from the California State Association of Counties and California School Boards Association of its regulations requiring government agencies spending taxpayer money to influence voters to disclose their activity in the same manner as other individuals, groups, and entities who spend money to influence voters.

In a ruling in Los Angeles Superior Court, the Honorable Judge Mitchell Beckloff ruled the regulations in question are legal and within the authority of the FPPC.

The ruling bolsters the FPPC’s determination these regulations are valid and enforceable.

The Fair Political Practices Commission (FPPC) adopted cost of living adjustment regulations amending contribution limits and gift limit amounts.

The newly adjusted contribution limit in effect for candidates for the Senate or Assembly and candidates for elected seats to the Board of Administration of the Public Employees Retirement System for an election occurring during the period January 1, 2021 through December 31, 2022 is now $4,900 per person.

The newly adjusted annual gift limit amount in effect for the period January 1, 2021, to December 31, 2022, is $520.

The Fair Political Practices Commission (FPPC) adopted cost of living adjustment regulations amending contribution limits and gift limit amounts.

The newly adjusted contribution limit in effect for candidates for the Senate or Assembly and candidates for elected seats to the Board of Administration of the Public Employees Retirement System for an election occurring during the period January 1, 2021 through December 31, 2022 is now $4,900 per person.

The newly adjusted annual gift limit amount in effect for the period January 1, 2021, to December 31, 2022, is $520.

The Fair Political Practices Commission (FPPC) voted to require more transparency and disclosure of those who use limited liability companies (LLC’s) to make political contributions.

Aditionally, they would require campaigns to list the name of the actual person who directed the LLC political spending.

The first new regulation requires LLC’s involved in raising and spending money for political activity to name the person making the decisions.

The second new regulation requires campaigns receiving donations from LLC’s to also list the name of the person responsible for the political activity.

A 2019 FPPC Enforcement Division examination of LLC’s found it was relatively easy to find information about the type of business, its address and an agent for service of process.

However, it was extremely difficult to find the identities of the people behind the LLC’s owners or the true source of the political expenditures.

Due to the current COVID-19 pandemic, the Fair Political Practices Commission (FPPC) is allowing a 60-day extension for those required to file a 2019 annual Statement of Economic Interests (Form 700).

This two-month extension means forms normally due on April 1, 2020, will be accepted by the FPPC as timely until June 1.

The extension will apply to all officials required to file in April.

The FPPC intends to formally ratify this extension at its April 2 special meeting.

Individuals and businesses in California are coming to the aide of those in need through donations of money and supplies to combat the COVID-19 pandemic.

In many instances, elected officials are instrumental in raising donations for these purposes, whether for charitable or government organizations.

In doing so, an elected official should be aware of and may be required to file a behested payment report.

The current statewide shelter-in-place order, closure of government offices, and various other circumstances caused by the coronavirus pandemic may make it difficult to file these reports on time.

The Fair Political Practices Commission (FPPC) encourages elected officials to make best efforts to timely file behested payment reports.

If circumstances caused by the pandemic inhibit an official’s ability to file reports, the official should communicate these issues to their agency and document all attempts to file and the issues faced.

If an official makes best efforts to comply with the Political Reform Act’s behested payment reporting rules but is unable to do so due to the pandemic, the FPPC will consider this a strong mitigating factor in determining whether an enforcement action against the official is appropriate.

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.

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.