FPPC officially clarifies application of new financial interest law

The Fair Political Practices Committee (FPPC) officially removed some ambiguity around a new financial interest law, SB 1439 (Chaptered, 2022). Just before the holidays, the FPPC voted to formally adopt a Commission Opinion stating that the disqualification obligations in SB 1439 do not apply retroactively to campaign donations received in 2022.

SB 1439 expands Government Code Section 84308 — the Levine Act — to local elected officials. Under the new law, officials must abstain from participating in certain decisions related to campaign contributions. The amendment does not apply to contributions received or proceedings participated in throughout 2022 before the statutory amendments took effect on Jan. 1.

The vote was made in response to calls for greater clarity from the League of California Cities. The vote is a positive step toward clarifying the impact of SB 1439 and gives local elected officials certainty going into 2023. However, there will likely be additional implementation challenges to work through, 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 additional 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.