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.

The California Fair Political Practices Commission (FPPC) has issued an advisory encouraging people subject to lobbying registration and reporting requirements to continue to make the best efforts to timely file all legally required reports and statements.

However, it may be difficult for some to file statements and reports given the shelter-in-place order and other issues caused by the pandemic.

If circumstances caused by COVID-19 inhibit the filing of a lobbying report or statement, the filer should communicate these issues to the Office of the Secretary of State and document all attempts to file and the issues faced.

While quarterly lobbying reports are filed electronically, the law requires certain other statements be filed on paper with an original signature.

Restrictions imposed to fight the spread of COVID-19 may make the logistics of filing documents on paper with original signatures difficult or even impossible.

To the extent this is the case, people required to file lobbying forms on paper with original signatures are encouraged to make use of digital and electronic options for filing reports to ensure timely filing.

Paper statements with original signatures will need to be filed when feasible.

If a person with lobbying filing requirements makes best efforts to comply with the Political Reform Act’s lobbying registration and reporting rules but is unable to do so due to the COVID-19 pandemic, the FPPC will consider this a strong mitigating factor in determining whether an enforcement action against the person is appropriate.

Fair Political Practices Commission (FPPC) staff will hold an interested persons meeting on Monday, April 20, at 10:00 a.m.

The purpose of the meeting is to solicit public input regarding legislative and regulatory proposals to enhance disclosure of political activity by limited liability companies (LLCs) in California elections.

Current law enables LLCs to make contributions or independent expenditures solely in the name of the LLC without disclosing any information, or even a way to determine, the source of the funds expended by the LLC and individuals responsible for operating the LLC.

The FPPC is interested in increasing the amount of information available to the public concerning political activity by LLCs.

Regulatory proposals will be considered for adoption or amendment on or after the May 21 meeting.

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.

In light of the statewide shelter-in-place order, the Fair Political Practices Commission (FPPC) understands the unique and extraordinary situation caused by the united efforts to deal with the COVID-19 pandemic.

The FPPC recognizes offices around the state are closed and the stay at home directive makes the filing of campaign statements and reports difficult.

An advisory has been issued encouraging candidates and committees to continue to make best efforts to timely disclose campaign activity to the public.

State and local candidates are encouraged to make use of electronic filing options, if available.

All candidates and committees filing campaign statements and reports with the Office of the Secretary or State may use the online filing system.

Local candidates and committees should contact their local filing officers to determine if electronic filing is available in their jurisdiction.

If a candidate or committee makes best efforts to comply with the Political Reform Act’s campaign finance disclosure rules but is unable to do so due to the COVID-19 pandemic, the FPPC will consider this a strong mitigating factor in determining whether an enforcement action against the candidate or committee is appropriate.

The California Fair Political Practices Commission (FPPC) encourages filers who have access to an electronic Form 700 filing system to take advantage of its use.

This comes in light of the current COVID-19 pandemic and the upcoming Form 700 Statement of Economic Interests filing deadline on April 1, 2020.

If electronic filing is not available, filers are strongly encouraged to submit forms by mail rather than in person.

Statements postmarked on or before the filing deadline are considered timely filed.

The FPPC’s advice telephone line is closed until further notice.

However, they continue to timely respond to requests for advice via email.

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.

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 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.

On November 15, the California Fair Political Practices Commission approved proposed regulations to make biennial cost of living adjustments to campaign contribution and gift limits that will apply from January 1, 2019 through December 31, 2020.

The proposed regulations would change the gift limit from $470 to $500 and make increases to campaign contribution limits for candidates.

Adjusted contribution limits for gubernatorial candidates would increase from $29,200 to $31,000.

The City of Long Beach, California voted to establish a city ethics commission.

Measure CCC creates an independent ethics commission charged with administering and implementing rules concerning campaign financing, lobbying, conflicts of interest and governmental ethics.

The commission will also develop an educational program for candidates and lobbyists with the city.

The city’s agreement with the Fair Political Practices Commission to assist in the enforcement of local ethics laws remains in place.

On November 15, the California Fair Political Practices Commission (FPPC) will consider proposed regulations to make biennial cost of living adjustments to campaign contribution and gift limits that will apply from January 1, 2019, through December 31, 2020.

The proposed regulations would change the gift limit from $470 to $500 and make increases to campaign contribution limits for candidates. Adjusted contribution limits for gubernatorial candidates would increase from $29,200 to $31,000 per person.

The FPPC is accepting written comments on the proposals until November 13, 2018.