FPPC Enforcement Retrospective & Prospective Policy Meeting November 22, 2019
2019 Enforcement Trends Resource Allocation 2019/2020 Penalties 2019/2020 Streamline/WL Discussion Program Roadblocks to Enforcement Legislative Proposals Regulatory Proposals The year to come… 2
2019 Enforcement Trends Resource Allocation 2019/2020 Penalties 2019/2020 Streamline/WL Discussion Program Roadblocks to Enforcement Legislative Proposals Regulatory Proposals The year to come… 3
2019 Enforcement Trends • Referrals Not Slowing Down • Laundered Campaign Contributions • Personal Use of Campaign Funds • Advertisements/Mass mailers • Campaign Related Communications at Public Expense 4
Complaints and Referrals Received (As As of f 11/1/19) 3500 32% 3000 42% 2500 1529 2000 27% 1500 1591 1616 350 1000 596 1352 1180 500 652 609 564 0 2015 2016 2017 2018 2019 Complaints Referrals 5
Laundered Campaign Contributions & Personal Use of f Campaign Funds (C (Complaints Received) 80 70 60 39 50 40 8 30 16 9 20 35 29 22 10 20 0 2016 2017 2018 2019 Laundered Campaign Contributions Misuse of Campaign Funds 6
Laundered Campaign Contributions & Personal Use of f Campaign Funds (C (Cases Opened) 25 20 8 15 7 10 6 4 15 10 5 7 6 0 2016 2017 2018 2019 Laundered Campaign Contributions Misuse of Campaign Funds 7
Advertisements & Mass Mailings 2016 2016 - 2019 2019 Complaints Cases Opened 120 350 328 111 105 300 100 250 80 200 60 148 49 150 37 104 40 100 73 20 50 0 0 2016 2017 2018 2019 2016 2017 2018 2019 8
Mass Mailings/Ads Sent at Public Expense Number of Cases Opened Case Resolutions 25 20 18 22 22 18 20 16 14 16 15 12 10 8 10 8 6 5 4 3 3 2 2 2 2 1 1 0 0 0 2015 2016 2017 2018 2019 Advisory Letter Stipulation Warning Letter No Action Closure Letter 18901.1 & 18420.1 89001 and 18901 9
2019 Enforcement Trends Resource Allocation 2019/2020 Penalties 2019/2020 Streamline/WL Discussion Program Roadblocks to Enforcement Legislative Proposals Regulatory Proposals The year to come… 10
Resource Allocation 2019/2020 (Priorities) • What was prioritized for 2019? • What should be prioritized for 2020? 11
Types of Cases Opened 2018 v. 2019 2018 – Election Year 2019 – Non-Election Year 160 226 432 Campaign (59%) Campaign (28%) SEI (27%) SEI (61%) 419 Other (14%) Other (11%) 918 923 12
Drill Down – Campaign Cases Opened 2018 2019 Campaign Non-Filer 10 34 21 20 8 7 Annual Fees 63 30 Campaign Non- 107 Reporter Campaign Contribution Limits 112 255 Laundered Campaign 683 Contributions Other Campaign 13
Complaints Received in 2018 Prioritizing Complaint Processing Complaints 36% Case Open (36%) Received 2018 Complaint Rejected (64%) Days Opened 64% (Median) 10 14
Complaints Received in 2019 Complaints 10% Received 2019 Case Open (35%) 35% Complaint Rejected (55%) Days Opened Intake Review (M (Median) (10%) 6 55% 15
Referrals Received – 2018 v. 2019 2018 2019 7% 6% 10% Case Open (84%) Case Open (93%) Referral Rejected Referral Rejected (10%) (7%) Intake Review (6%) 84% 93% 16
Campaign Related Personal Use of Conflicts of Interest Advertisements and Other areas Communications at Campaign Funds Mass Mailings (Disclose Public Expense Act) Pursuing Nonfilers Behested Payments Contract Work Pursuing defaults and nonpayment 17
Median Case Pendency (2016-2019 Cases) Statements of Economic Interest Non-Filer 73 Campaign Non-Filer 109 Recordkeeping 151 Lobbying Reporting 202 Days Opened (Median) Mass Mailings 208 Campaign Contribution Limits 216 105 Conflict of Interests 220 Advertisements 233 Misuse of Campaign Funds 347 Laundered Campaign Contributions 367 Campaign Bank Account 414 Cash and In-Kind Contributions and/or Expenditures 448 18 0 50 100 150 200 250 300 350 400 450 500
2019 Enforcement Trends Resource Allocation 2019/2020 Penalties 2019/2020 Streamline/WL Discussion Program Roadblocks to Enforcement Legislative Proposals Regulatory Proposals The year to come… 19
Penalties 2019/2020 Setting guidelines 20
• General Criteria Applied • By Category: • Conflicts of Interest Penalties • Personal Use • Use of Cash 2019/2020 • Campaign Late Filing • Unreported Lobbying Activity 21
General Criteria Regulation 18361.5, subd. (d). Consider all the The presence or surrounding absence of any The seriousness of the Deliberate, negligent or circumstances including violation; intention to conceal, inadvertent; but not limited to: deceive or mislead; Demonstrated good faith by consulting the Prior record of Voluntarily filed Isolated or part of a Commission staff or any violations of the Act or amendments to provide pattern; other government similar laws; and full disclosure. agency; Sophistication of the Comparable cases. parties. 22
Factors that Influence Penalties for Conflict of Interests Violations (Range $3,000 - $5,000) Aggravating Factors = Higher Penalty • Interest Not Disclosed in SEIs/Interest Concealed • Large Personal Benefit Received • Official Worked Directly on the Project that was the Subject of the Governmental Decision • Large Benefit to Official’s Economic Interest • Pattern of Violations Mitigating Factors = Lesser Penalty • No Prior History of Conflict of Interest Violations • Cooperation with Enforcement • Interest Disclosed in SEIs • No Longer in Office • Requested Advice from Agency Attorney Before Governmental Decision • Corrective Action Taken Before Complaint Filed • Official Did Not Work Directly on Project that was the Subject of the Governmental Decision 23
Personal Use of Campaign Funds – ($5,000 w. some exceptions) • Considerations: • Sophistication • Amount • Reimbursement • Frequency • Own Money 24
Receipt of f Cash/Making Cash Expenditures ($ ($1,0 ,000 - $2,5 ,500) • Considerations: • Amount • Percentage • Recordkeeping • Personal Use • Level of Sophistication 25
2019 Enforcement Trends Resource Allocation 2019/2020 Penalties 2019/2020 Streamline/WL Discussion Program Roadblocks to Enforcement Legislative Proposals Regulatory Proposals The year to come… 26
Streamline & Warning Letter Discussion Major Donor Behested Payment Committees What needs some What’s working? review? 27
• What’s working? • Extended categories – committee naming, cash, ads, recordkeeping, gift limit violations • No surprises • What needs reviewed? Streamline/WL • Level of detail – exclusions re: 24 hr Program reports • Some of the percentages • Lobbying limit • Population exclusion bottom level • Add Major Donors and Behested Payments 28
Under $30k; No notice; Majo jor Donors Never filed before; Filed after contact; Business is terminated. 29
• Filed before Enforcement contact; • Within 100 days of due date; • Filed with estimated amount; • # of payments or solicitations; • Prior history of filing (knowledge of requirements); • Requested info from charity; Behested • Amount of donation. Payments Exclusions – 1.Business before his/her agency; 2.Perceived or real personal benefit. 30
2019 Enforcement Trends Resource Allocation 2019/2020 Penalties 2019/2020 Streamline/WL Discussion Program Roadblocks to Enforcement Legislative Proposals Regulatory Proposals The year to come… 31
Subpoenas out of state LLCs Roadblocks to Enforcement Sworn officer access Advertisement rules 32
2019 Enforcement Trends Resource Allocation 2019/2020 Penalties 2019/2020 Streamline/WL Discussion Program Roadblocks to Enforcement Legislative Proposals Regulatory Proposals The year to come… 33
Legislative Proposals LLC Presumption FPPC Sworn Officer Out of State Subpoenas Public Agency Campaign Ads Bright Line Rule Advertisement Rules Lobbying Audits 34
2019 Enforcement Trends Resource Allocation 2019/2020 Penalties 2019/2020 Streamline/WL Discussion Program Roadblocks to Enforcement Legislative Proposals Regulatory Proposals The year to come… 35
LLC recordkeeping Regulatory ry Enforcement procedures regulations overhaul Proposals Cash + Recordkeeping = Presumption of Personal Use or Laundering 36
2019 Enforcement Trends Resource Allocation 2019/2020 Penalties 2019/2020 Streamline/WL Discussion Program Roadblocks to Enforcement Legislative Proposals Regulatory Proposals The year to come… 37
The year to come… This Photo by Unknown Author is licensed under CC BY-NC-ND 38
Questions? 39
Recommend
More recommend
