Last Thursday, the California Fair Political Practices Commission approved new regulations clarifying amendments that became effective on January 1, 2025 to the state’s Levine Act (Govt. Code Section 84308), which affects political contributions from real estate developers and government contractors to candidates for local office.
Since the law was originally expanded to capture contributions to candidates for city councils, county boards of supervisors and other elected local government officials on January 1, 2023, it has posed significant risk to individuals and entities pursuing real estate developments and contracts with local government bodies. While providing additional clarify, these new changes loosen the rules in some respects, but also tighten them in others. To that end, the law remains a significant trap for the unwary.
The important changes to the law are:
- Entities with pending projects/contracts may now contribute up to $500 (up from $250) per candidate/elected official with decision-making authority.
- Individuals lobbying on behalf of entities with pending projects/contracts are now prohibited from contributing any amount to candidates/elected officials with decision-making authority.
- Contributions to elected City Attorneys who provide legal advice regarding a proceeding are now exempt from this law.
- Extends refund timing from 14 days to 30 days.
- Clarifies the definition of a “pending” proceeding.
- Codifies that nonprofits do not have a financial interest in a decision if the only financial affect would be an increase or decrease in membership dues.
Should you have any questions about your political giving, please do not hesitate to contact us.
