The FPPC Communications Office is here to help you understand the manyareas surrounding the Political Reform Act, which is often described as the PRAor the Act.
We try to answer as many questions as thoroughly as possible, but in many cases we are unable to comment on specific situations. The reason for this is fairness. First, absent a full investigation, we do not know all the facts and most situations are very fact specific. Second, we want to avoid any public comment that could impede an ongoing investigation. And lastly, until there is a final resolution of a case, we do not want to accuse or exonerate someone based on an alleged violation of the Act. That’s one reason why "fair" is part of our name. We will conclude whether or not a violation has occurred only after a thorough investigation and a determination by the Commission. With these principles in mind, we often provide answers in general terms.
We also try to provide guidance and point to sections of the law and regulations that are relevant to your questions. Below are answers to some common questions.
Getting Started
What does the FPPC do?
At its core, the FPPC regulates and enforces campaignfinance reporting for candidates and committees, lobbying activity and conflictof interest issues for public officials. These are the main principles coveredby the Act.
How did the FPPC begin and where does it get its authority?
In 1974, California voters approved Proposition 9, thePolitical Reform Act, which created the FPPC to administer, interpret and enforcethe law.
How does the FPPC function and what is its structure?
The FPPC consists of a five-member, nonpartisan Commission thatmeets monthly to make decisions on a wide spectrum of matters, includingenforcement cases, adopting and rescinding regulations, and taking positions onlegislation related to the Act. Commissioners are appointed by variousconstitutional officers and serve staggered four-year terms. The Governor isresponsible for appointing the Chair of the Commission and one otherCommissioner from a different political party. The other Commissioners areappointed by California’s Attorney General, Secretary of State, and StateController. The Commission’s Chair is the only full-time Commissioner and isresponsible for setting the overall policy direction for the FPPC. Togetherwith the Chair, the Executive Director provides day-to-day leadership to theCommission’s staff.
The staff is organized into four divisions for specified tasks.
The Enforcement Division investigates and has the authorityto administratively prosecute violations of the Act. The team of investigators,attorneys, auditors, political reform consultants and support staff worksvigorously to ensure cases are handled swiftly, effectively and fairly.
The Legal Division serves as legal counsel for theCommission, interpreting laws and policies related to the Act. It also provideslegal advice to public officials to assist them in complying with the Actthrough written advice letters, email and phone advice.
The External Affairs and Education Division providestraining and educational outreach to a variety of individuals who deal with theAct and also works with the media to answer questions and provide resources andmaterials to help educate the public.
The Administration Division provides fiscal, technology,personnel, and business services support for the staff and Commission.
Complaints/Investigations/Enforcement
Can I find out if someone is facing a complaint or filed a complaint?
Yes, complaints can be confirmed any time after we receivethem.
Can I get a copy of the complaint?
Yes, we can provide a copy of the complaint five calendar daysafter we send it to all persons named in the complaint. We will not comment onthe specifics of any complaint out of fairness and to maintain the integrity ofany potential investigation.
Why don’t you provide a copy of the complaint right away?
The FPPC is protecting the due process rights of thosecomplained against. It is only fair for those involved to have a chance to seethe complaint firsthand before hearing about it in the media. Others mayrelease complaints or information to the media and it’s their right to do so. Butas an enforcement agency, our regulation and policy is to ensure due process,maintain fairness and allow for the investigatory process to be thorough andunbiased.
Do you have to have a complaint before you start an investigation?
No. The Enforcement Division begins many cases proactively based on learning about potential violations independent of a complaint. For example, mediareports on various situations can trigger an investigation.
We also receive referrals from other agencies, including district attorneys, the Franchise Tax Board, local filing officers, IRS, FBI, the Attorney General’s Office, and other states. We work with these various agencies on investigations as well. The details of those partnerships vary from case to case.
The EnforcementDivision also operates a campaign audit program of both mandatory anddiscretionary audits. In addition, the FPPC conducts a random selection processof various campaigns from jurisdictions around the state, with the FranchiseTax Board conducting the audits. Cases also can result from these audits.
Will you confirm the existence of a Commission-initiated investigation?
We will be able to confirm casesthe Enforcement Division initiates and will be able to provide theletter of inquiry’ five calander days after it is sent to the subject.
Obviously, some investigations may be quite sensitive, and the Enforcement Division may not divulge information that may harm, disrupt, or prevent a proper and legal investigation. Under the law, the Chief of Enforcement has the prosecutorial discretion to withhold any information that would jeopardize an investigation or information that is privileged, private or confidential.
Can I get a copy of the FPPC letter telling someone they’re being investigated or the complaint is not being pursued?
Yes. We can provide a copy of the letter stating that we areopening a case and will investigate the situation two days after sending it tothe respondent(s). If the complaint is being rejected, we will release thatletter immediately.
Do you investigate all complaints?
All sworn complaints are taken under official review todetermine if the complaint has merit. This includes determining if thecomplaint contains enough evidence of a potential violation and whether theallegation is related to the PRA or if it is covered under other laws (e.g., openmeetings laws, the prohibition against misuse of public funds, bribery). This initialreview usually takes a few days to a few weeks, depending on the circ*mstances.
If a complaint is found to be without merit, it is dismissedand both the complainant and the subject are informed of this decision.
If a complaint has merit and allegations that fall under thePRA, the parties will be notified and an investigation will commence to determine if there is a violation of theAct.
How long does an investigation take?
There is no standard length of time since cases vary intheir complexity and difficulty. Each case has its own specific facts and thelength of any investigation depends on a variety of factors. However, the EnforcementDivision makes every attempt to conduct investigations in a thorough, yet timelymanner. On average, ninety percent of our cases are completed (investigation toresolution) within a year.
What are the penalties for violating the PRA?
Each violation ofthe Act is subject to an administrative fine of up to $5,000. And someadvertising disclaimer violations can be fined up to three times the amount ofthe advertisem*nt.
What are the types of case resolutions?
When there’senough evidence to prove a violation of the Act, the Enforcement Division will present the case to the Commission with a recommended penalty.
Alternatively, theEnforcement Division may issue a Warning Letter. A Warning Letter states that a violation of the Act has occurred, but for reasons explained in theletter, the case is resolved without a fine. However, a Warning Letter is considereda prior offense in any subsequent case against the person who received it.
If there is insufficientevidence to warrant prosecution, a case may be closed with an Advisory Letteror without further action.
How do you determine how much to penalize or fine someone?
The maximum finefor each violation of the Act is $5,000. The fine for each violation is basedon factors such as complexity and seriousness of the case, the harm to thepublic, the cooperation of those involved, whether the violation was deliberate,negligent or inadvertent, and penalties issued in previous cases that aresimilar in nature.
What types of things constitute a violation of the Act?
- Financialconflicts of interest
- Launderedcampaign contributions
- Gift limitviolations
- Campaignmass mailing at public expense
- Failureto file or report all interests on required financial disclosure statements (Statementsof Economic Interests or Form 700)
- Inadequate,untimely, or no filing of required campaign statements and reports
- Impropercampaign reporting
- Improperreceipt of campaign funds, including receiving funds from anonymous sources andcontributions in excess of limits
- Improperexpenditures of campaign funds, including using campaign funds for personal use
What types of political-related items do not fall under FPPC jurisdiction?
- Falseor misleading campaign materials (As to the content of the communications)
- Electionfraud
- Misuseof public funds unrelated to campaign mass mailing
- Violationsof the Elections Code, the Penal Code, or any laws other than the PoliticalReform Act
- Issuesrelated to Federal campaigns
- Openmeeting law issues (Brown Act, Bagley-Keene)
- Localordinances
- Vandalismof campaign signs
- Residencyrequirements for running for or holding office
Conflicts of Interests
What is a Statement of Economic Interests (SEI) or Form 700?
A Statement of Economic Interests (SEI) is commonly referredto as a Form 700. It’s the document public officials have to file detailing theirrelevant financial interests, such as property, business positions and/or ownership,investments, income, and gifts. The purpose is to give the public the ability tosee the financial interests of their public officials to ensure the officialsare making decisions to best serve the public, and not acting in their ownfinancial interests. Merelyreporting an economic interest is not a conflict in itself; a conflict mayarise when a governmental decision made by the official impacts the official's economic interests. The Form 700 is signed under penalty of perjury.
These FAQ’s willcover the basics. There is more specific information Frequently Asked Questions: Form 700 Disclosure.
Who has to file?
Generally speaking, every public official who is elected orappointed to a public agency, board or commission, and the top officials indecision-making positions in government agencies are required to file. Electedofficials from the Governor and Legislature, mayors and city councilmembers,county supervisors, school board members, all the way down to members of small local boards, commissions and districts are required to file Form 700s.The Secretary and top leadership of State agencies, and many local agencies (e.g.,city manager and top staff, district attorney and top staff) are also requiredto file.
A good rule of thumb is if someone is an elected official, sitson a board, or works for a public agency and is in a decision-making (policy,contracts, etc.) position, it’s likely they will have to file an SEI.
Who determines those who are required to file?
The Act determines many of these requirements and sets outguidelines for state and local agencies to follow to determine which employees shouldhave to file.
Where do they file and where are they kept?
Most state and local officials file with their agency. Inmost instances, the agency is required to forward the originals for only specifiedhigh-level officials to the FPPC.
The State’s Constitutional Officers (Governor, Lt. Governor,etc.), members of the State Legislature (and their top staff), and all judges filetheir forms with the FPPC. FPPC Commissioners also file with the FPPC. CityCouncilmembers and County Supervisors file locally and with the FPPC. Retiredjudges serving on assignment and legislative staff file the Form 700 directlywith the FPPC.
Are Form 700s public documents?
Yes. Every agency must provide them to the public. To promote compliance and increasetransparency in government, the SEIs for many local and state officials are postedon this websites. Due to privacy concerns, the SEIs have the address, telephoneand signature blocks redacted. Copies of the original forms are available forreview or copying at the FPPC. If you have trouble finding a particular SEI orhave any other questions, please contact the FPPC media office at [email protected] or at [email protected].
How long are they kept on file?
Seven years. However, Form 700s for Constitutional officersare kept in perpetuity.
When is the deadline for officials to file?
Current deadlinesare on the website. They are generally the first of March and April, dependingon positions, but may vary if the deadline falls on a weekend. There are deadlinesfor the various filers.
- March deadline
- Elected State Officers
- Judges and Court Commissioners
- State Board and Commission Members listed in Government
Code Section 87200
- April deadline
- Most other filers
- Assuming Office and Leaving Office Statements
- Most filers file within 30 days of assuming or leaving office or within 30 days of the effective date of a newly adopted or amended conflict of interest code.
What are some common things officials do NOT have to include on a Form 700?
Common things not required to be reported include governmentalincome, personal real property (their personal residence or a non-rented vacationhome), and business or property outside of their jurisdiction without any businessdealings within the jurisdiction. (Though an official does not report theirpersonal residence on Form 700, it may still create a conflict of interest forthe official in a particular decision.)
A good rule of thumb is the more general the subject, themore likely it does not have to be reported. For example, a mutual fundgenerally is open to hundreds or thousands of investors, covering dozens orhundreds of companies, therefore the impact of a public official’s decision doesnot affect just one stock or one person. So a mutual fund does not have to bereported.
The more specific the investment, the more likely it willhave to be reported. A public official owning one particular stock or a muchmore personalized IRA will have a much greater potential of impacting that onestock in a vote or decision, thereby raising a potential a conflict ofinterest.
Generally speaking, business ownership has to be reported,but not always. It depends on factors such as location, percentage ofownership, client income or total income. There are thresholds and rules onthese in the Form 700 instructions. Certain types of interests and sources ofincome are not always required to be reported, all based on an employee’sduties as provided for in a conflict of interest code.
What is the general rule on conflicts of interests?
FPPC Regulation 18700 offers the basic guide and rule. Itstates: “A public official at any level of state or local government has aprohibited conflict of interest and may not make, participate in making, or inany way use or attempt to use his or her official position to influence agovernmental decision when he or she knows or has reason to know he or she hasa disqualifying financial interest. A public official has a disqualifyingfinancial interest if the decision will have a reasonably foreseeable materialfinancial effect, distinguishable from the effect on the public generally,directly on the official, or his or her immediate family, or on any financialinterest” of the official’s. For example, the financial interests that cancause a conflict for an official include a business interest, real property,and a person who has been a source of income or gifts to the official.
When does a public official have to recuse themselves from a discussion, decision or vote?
There are many, specific facts that are necessary to have todetermine if a public official needs to recuse himself or herself from aparticular situation. Generally speaking, if a public official has reason tobelieve a matter could potentially have a financial effect on his or her owninterest, they should recuse themselves. This includes not participating in adiscussion, possibly leaving the room, as well as abstaining from any vote.
It’s important to note the responsibility lies in the handsof the public official to be aware of any potential conflict and seek advice fromtheir agency’s attorney or the FPPC Legal Division BEFORE participating in anydecision or vote. Failure to do so can result in a violation of the PRA.
Does the FPPC have the ability to remove someone from office?
No, but other state and local laws may address this issue.
Campaign Finance
Where are campaign finance and lobbying activity reports filed?
Statecampaign and lobbying reports are filed with the Secretary of State’s Office.At the local level, they are filed with city and county clerks’ or Registrar ofVoters’ offices. The largest category of forms filed with the FPPC are Form700s. However, we also receive Form 462 (independent expenditureverification) and Form T10 contributors, and some other forms, like to report certain behested payments.
What are some general rules regarding campaign finance reporting?
A few of the basic rules include the fact you cannot usecampaign funds for personal use or benefit, campaign contributions andexpenditures should be carefully recorded and reported on the proper form andfiled on time, campaign expenditures should be made with campaign funds, and campaignfunds should not be co-mingled with personal or other funds.
There are a number of different types of campaign committeeswith specific and detailed rules. You can find more information on this under the“Learn” section of the FPPC website.
Does the FPPC regulate the content of campaign advertisem*nts?
No, the Act does not regulate the content of politicaladvertising. As long as reporting and disclaimer requirements are met, theactual content does not fall under FPPC regulations and is considered freespeech.
