New financial interest law will not apply to 2022 campaign contributions
On Nov. 17, the Fair Political Practices Committee (FPPC) voted 5-0 to issue an opinion that the disqualification obligations in SB 1439 (Glazer) will not apply retroactively to campaign donations received in 2022. The vote is a positive step toward clarifying the impact of SB 1439.
The opinion was made in response to a request from the City Attorneys Department of the League of California Cities on behalf of El Cajon Council Member Gary Kendrick. (The FPPC can only issue opinions specific to individuals.) Shortly after the request was made, the FPPC granted the request, issued a staff report, and heard the request. The FPPC will formally adopt the opinion in December.
SB 1439 expands the application of Government Code Section 84308 — the Levine Act — to local elected officials. Although the law does not go into effect until Jan. 1, 2023, it contains a provision that disqualifies officials from participating in decisions involving a prior donor’s license, permit, or other entitlement for 12 months after the date of a donation exceeding $250. This disqualification is also triggered by the receipt of a donation over $250 from any “participant” in a decision.
Prior to the FPPC’s vote, it was not clear if this provision would apply retroactively. If so, it could have disqualified council members from participating in important decisions — such as the approval of licenses or permits — in 2023 because of contributions received before the law went into effect.
While this decision is a positive one, there are likely to be additional implementation challenges to work through once the law takes effect, such as the practical realities of returning contributions. The FPPC is working on regulations to address these challenges, and Cal Cities has committed to partnering with the FPPC to adopt regulations that will provide clarity to elected officials and the attorneys advising them on SB 1439.
For more information about SB 1439, please contact Legislative Affairs Lobbyist Johnnie Pina.