September 2013 Agenda

    NOTICE AND AGENDA

    Commission Meeting

     

    California Fair Political Practices Commission

    428 J Street, Suite 800

    Sacramento, CA 95814


    Thursday, September 19, 2013

    10:00 A.M.

    View Agenda as PDF

    Under Government Code section 11123(a), all meetings of a state body are open and public, and all persons are permitted to attend any meeting of a state body, except as otherwise provided in that article. The section further states that the portion of the teleconferenced meeting that is required to be open to the public must be audible to the public at the location specified in the notice of the meeting. The Commission may take action on any item listed on this agenda.

    Welcome

    Ann M. Ravel, FPPC Chair

    1. Public Comment

    This portion of the meeting is reserved for comment on items not on the agenda. Under the Bagley-Keene Act, the Commission cannot act on items raised during public comment, but may respond briefly to statements made or questions posed; request clarification; or refer the item to staff.

    Comment Letter - Carmen Balber, Consumer Watchdog (item 24)

    Comment Letter - Steven Maviglio (item 24)

    Comment Letter - Richard R. Rios, Olson Hagel & Fishburn LLP (item 29)

    2. Approval of August 2013 Commission Meeting Minutes

    3-22 Enforcement - Consent Calendar

    Lobbying Firm Registration and Reporting

    3. In the Matter of California Strategies LLC, Jason Kinney, Rusty Areias, and Winston Hickox, FPPC No. 11/850. Staff: Commission Counsel IV Galena West, Program Specialist Grant Beauchamp and Special Investigator Paul Rasey. Respondent, California Strategies LLC, is a full-service public strategy firm dealing with topics including California’s political, regulatory, legislative, and media environment. Respondents, Jason Kinney, Rusty Areias, and Winston Hickox, are partners and principals of Respondent California Strategies LLC. Respondent California Strategies LLC violated the Political Reform Act by failing to register as alobbying firm, in violation of Government Code Sections 86100, subdivision (b), and 86101 (1 count); failing to file quarterly lobbying firm reports during calendar year 2012, in violation of Government Code Sections 86114 and 86117 (1 count); and failing to maintain records to support the information required to be disclosed on lobbying reports, in violation of Government Code Section 86110 (1 count). Respondent Jason Kinney qualified as a lobbyist but failed to complete and file the Lobbyist Certification Statement, in violation of Government Code Section 86100, subdivision (a) (2 counts); and failed to file quarterly lobbyist reports, in violation of Government Code Section 86113 (2 counts). Respondent Rusty Areias qualified as a lobbyist in 2012 but failed to complete and file the Lobbyist Certification Statement, in violation of Government Code Section 86100, subdivision (a) (1 count); and failed to file quarterly lobbyist reports, in violation of Government Code Section 86113 (1 count). Respondent Winston Hickox qualified as a lobbyist in 2012 but failed to complete and file the Lobbyist Certification Statement, in violation of Government Code Section 86100, subdivision (a) (2 counts); and failed to file quarterly lobbyist reports, in violation of Government Code Section 86113 (2 counts). Total Proposed Penalty: $40,500 (Respondent California Strategies LLC - $10,500; RespondentJason Kinney - $12,000; Respondent Rusty Areias - $6,000; and RespondentWinston Hickox - $12,000).

    CA Strategies - Stip

    Conflict of Interest

    4. In the Matter of Chris Canning, FPPC No. 12/696. Staff: Commission Counsel Milad Dalju and Special Investigator Annaraine Diaz. In this matter, Respondent, Chris Canning, in his capacity as a member of the Calistoga City Council, made governmental decisions in which he knew, or had reason to know, he had a financial interest, by voting on matters that had a reasonably foreseeable financial effect on the Calistoga Chamber of Commerce while he was the executive director of the Calistoga Chamber of Commerce, in violation of Government Code Section 87100 (1count). Total Proposed Penalty: $3,000.

    Canning - Stip

    5. In the Matter of James Kopshever, FPPC No. 12/085 (Default Decision). Staff: Senior Commission Counsel Angela Brereton and Special Investigator Beatrice Moore. In this matter, Respondent, James Kopshever, a member of the City of Chowchilla City Council, made a governmental decision in which he had a financial interest, by voting to award a five-year farm land lease agreement to Fagundes Brothers Dairy, which was a source of income to him, in violation of Government Code Section 87100 (1 count). Total Proposed Penalty: $3,000.

    Kopshever - Default Decision 

    Campaign Reporting

    6. In the Matter of Friends of Rosalinda Avitia For Tulare Local Healthcare District Area 2 Director, Rosalinda Avitia, and Robert Montion, FPPC No. 12/965. Staff: Commission Counsel Milad Dalju and Special Investigator Beatrice Moore. In this matter, Respondents, Rosalinda Avitia, Friends of Rosalinda Avitia for Tulare Local Healthcare District Area 2 Director, and Robert Montion, as Treasurer, failed to report nine contributions of $100 or more, totaling $2,200, received between July 1, 2012,and September 30, 2012, by the October 5, 2012, deadline, in violation of Government Code Section 84211, subdivisions (a), (c), (e), and (f) (1 count), and failed to report three contributions of $100 or more, totaling $400, received between October 1, 2012, and October 20, 2012, by the October 25, 2012, deadline, in violation of Government Code Section 84211, subdivisions (a), (c), (e), and (f) (1 count). Total Proposed Penalty: $3,500.

    Avitia - Stip

    7. In the Matter of Hector De La Torre, DeLaTorre for Insurance Commissioner 2010, and Jane Leiderman, FPPC No. 12/211. Staff: Senior Commission Counsel Neal Bucknell and Program Specialist Bob Perna. This case arose from a Franchise Tax Board audit. Respondent, Hector De La Torre, was an unsuccessful candidate for Insurance Commissioner in the Democratic primary election held on June 8, 2010. Respondent, DeLaTorre for Insurance Commissioner 2010, was his candidate controlled committee, and Respondent, Jane Leiderman, was the committee Treasurer. In this matter, Respondents failed to report subvendor information for payments totaling approximately $614,185 on campaign statements filed for the reporting periods ending May 22 and June 30, 2010, in violation of Government Code Sections 84211, subdivision (k), and 84303 (1 count). Total ProposedPenalty: $2,500.

    De La Torre - Stip

    8. In the Matter of Breans Against Measures T & U, Rehan Chaudry, and BrettMurdock, FPPC No. 12/758. Staff: Commission Counsel Zachary Norton and Special Investigator Ann Flaherty. Respondent, Breans Against Measures T & U (“Respondent Committee”), qualified as a Primarily Formed ballot measure committee on or about October 1, 2012. At all times relevant to this matter, Respondent Rehan Chaudry was the Treasurer of Respondent Committee. At alltimes relevant, Respondent Brett Murdock was a member of the Brea City Council as well as the controlling candidate. The Respondent Committee opposed Measures T, the Brea Accountability Act, and U, the Brea Open Governance Act, on the ballot inthe November 6, 2012 election. Respondents failed to disclose that the Respondent Committee was controlled, and to include the name of the controlling candidate on its statement of organization, in violation of Government Code Section 84101 subdivision (e) (1 count). Total Proposed Penalty: $2,000.

    Breans Against Measures T & U - Stip

    9. In the Matter of Yes on 37 for Your Right to Know if Your Food Has Been Genetically Engineered. Supported by Consumer Advocates, Makers of Organic Products and California Farmers, FPPC No. 12/984. Staff: Senior Commission Counsel Neal Bucknell, Special Investigator Paul Rasey, and Political Reform Consultant Teri Rindahl. Respondent is the committee known as “Yes on 37 for Your Right to Know if Your Food Has Been Genetically Engineered. Supported by Consumer Advocates, Makers of Organic Products and California Farmers.” In this matter, Respondent authorized and paid for video advertisements in support of Proposition 37, but the required disclosure statements as to the committee name and donors of $50,000 or more were not presented in a clear and conspicuous manner in violation of Government Code Section 84507 and California Code of Regulations, title 2, section 18450.4 (1 count). Total Proposed Penalty: $1,500.

    Yes on 37 - Stip

    10. In the Matter of A Committee in Support of Proposition 34, Sponsored by ACLUof Northern California, and Abdi Soltani, FPPC No. 13/537. Staff: Political Reform Consultant Adrianne Korchmaros. Respondents, A Committee in Support of Proposition 34, Sponsored by ACLU of Northern California, and Abdi Soltani, as Treasurer, failed to timely file campaign reports for the semiannual period January 1,2012, through June 30, 2012, due July 31, 2012, as an electronic filing; the preelection periods July 1, 2012, through September 30, 2012, due October 5, 2012, and October 1, 2012, through October 20, 2012, due October 25, 2012; and a Late Contribution Report for contributions made on April 27, 2012, due April 28, 2012. All campaign reports were required to be filed with the Secretary of State and the failure to file resulted in violations of Government Code Sections 84200, 84200.5, and 84203 (4 counts). Total Proposed Penalty: $800.

    Committee in Support of Prop 34 - Stip

    11. In the Matter of Family Farmers Working for a Better California, with Major Support by Western Growers Association, and Ward Kennedy, FPPC No.13/660. Staff: Political Reform Consultant Teri Rindahl. Respondent, Family Farmers Working for a Better California, with Major Support by Western Growers Association, and Ward Kennedy, as Treasurer, failed to timely file the Supplemental Independent Expenditure (Form 465) covering the periods October 1, 2012, through October 20,2012, due October 25, 2012, and October 21, 2012, through December 31, 2012, due January 31, 2013, with the Secretary of State in both paper and electronic formatin violation of Government Code Sections 84203.5 and 84605 (2 counts). Total Proposed Penalty: $400.

    Family Farmers - Stip

    Lobbying Reporting

    12. In the Matter of Broad & Gusman, LLP, FPPC No. 13/497. Staff: Legal Analyst Tracey Frazier and Law Clerk Emma Olson. Respondents, Broad & Gusman, a California lobbying firm, and Barry Broad, Broad & Gusman's Responsible Officer, failed to timely file a Report of Lobbying Firm (Form 625) covering the period July 1,2012, through September 30, 2012, failing to disclose total payments received for lobbying services in the amount of $222,908.04, in violation of Government Code Sections 86114 and 84605 (1 count). Total Proposed Penalty: $2,500.

    Broad & Gusman - Stip

    13. In the Matter of Property ID Corporation and Morgan McComb, FPPC No.13/489. Staff: Legal Analyst Tracey Frazier and Law Clerk Emma Olson. Respondents, Property ID Corporation, a California lobbyist employer, and Morgan McComb, Property ID Corporation's Vice President of Administration and Responsible Officer, failed to timely file a Lobbyist Employer Report (Form 635) covering the periods April 1, 2012, through December 31, 2012, disclosing totalpayments made for lobbying services in the amount of $25,950.63, in violation of Government Code Sections 86115, 86116, 86117, and 84605 (3 counts). Total Proposed Penalty: $600.

    Property ID Corporation - Stip

    14. In the Matter of Performance Marketing Association, FPPC No. 13/493. Staff: Legal Analyst Tracey Frazier and Law Clerk Emma Olson. Respondent, Performance Marketing Association, a California lobbyist employer, failed to timely file a Lobbyist Employer Report (Form 635) covering January 1, 2011, through March 31, 2011, failing to disclose total payments made for lobbying services in the amount of $24,610.03, in violation of Government Code Sections 86116 and 86117 (1 count). Total Proposed Penalty: $200.

    Performance Marketing Association - Stip 

    Mass Mailing

    15. In the Matter of Alan Frank, Alan Frank for City Council 2012, and Jeff Buchanan, FPPC No. 12/890. Staff: Commission Counsel Zachary Norton and Special Investigator Paul Rasey. Respondent, Alan Frank, was an unsuccessful candidate for Placentia City Council in the November 6, 2012 election. Alan Frank forCity Council 2012 was Respondent Frank’s candidate controlled committee, and Respondent Jeff Buchanan was the Treasurer of the committee. Prior to the election, Respondents paid for and caused to be sent two mass mailers which failed to identify Respondents as the senders of the mailers in violation of Government Code Section 84305, subdivision (a) (1 count). Total Proposed Penalty: $2,500.

    Frank - Stip

    Major Donor

    16. In the Matter of Skechers USA, Inc., FPPC No. 13/885. Staff: Political Reform Consultant Adrianne Korchmaros. Respondent, Skechers USA, Inc., failed to timely file Major Donor Reports (Form 461) disclosing 6 contributions made during the periods January 1, 2011, through June 30, 2011, due on July 31, 2011; January 1, 2012, through June 30, 2012, due July 31, 2012; and July 1, 2012, through September 30, 2012, due October 5, 2012, with the City of Moreno Valley in violation of Government Code Sections 84200 and 84200.5 (6 counts). Total Proposed Penalty: $2,400.

    Skechers USA - Stip

    17. In the Matter of Signal Hill Petroleum, FPPC No. 13/898. Staff: Political Reform Consultant Jeanette Turvill. Respondent, Signal Hill Petroleum, failed to timely file a Major Donor Committee Campaign Statement (Form 461) for 2012 in violation of Government Code Section 84200 (1 count). Total Proposed Penalty: $400.

    Signall Hill - Stip

    Statement of Economic Interests – Non-Filer

    18. In the Matter of Jocelyn Woodard, FPPC No. 12/527 (Default Decision). Staff: Senior Commission Counsel Angela Brereton. Respondent, Jocelyn Woodard, was a Member of the County of Los Angeles Commission on HIV from April 2011 through July 2013. As a Member of the County of Los Angeles Commission on HIV, Respondent was required to file an Annual Statement of Economic Interests for calendar year 2011. In this matter, Respondent failed to file a 2011 Annual Statement of Economic Interests (Form 700) by the April 2, 2012 deadline, in violation of Government Code Section 87203 (1 count). Total Proposed Penalty: $4,000.

    Woodard - Default Decision 

    19. In the Matter of Martin Andreas, FPPC No. 13/ 627. Staff: Political Reform Consultant Adrianne Korchmaros. Respondent, Martin Andreas, as a Board Member for both the Air Pollution Control District Hearing Board and Big Springs Irrigation District for the County of Siskiyou, failed to timely file the 2012 Annual Statement of Economic Interests (Form 700) covering the period January 1, 2012, through December 31, 2012, due April 1, 2013, in violation of Government Code Section 87300 (1 count). Total Proposed Penalty: $200.

    Andreas - Stip

    20. In the Matter of Holly Johnson Harris, FPPC No. 13/834. Staff: Political Reform Consultant Adrianne Korchmaros. Respondent, Holly Johnson Harris, as a Trustee for the Fine Arts Museum for the City and County of San Francisco, failed to timely file the 2012 Annual Statement of Economic Interests (Form 700) covering the period January 1, 2012, through December 31, 2012, due April 1, 2013, in violation of Government Code Section 87300 (1 count). Total Proposed Penalty: $200.

    Harris - Stip

    Statement of Economic Interests – Non-Reporting

    21. In the Matter of Linda Richardson, FPPC No. 13/067. Staff: Senior Commission Counsel Dave Bainbridge. Respondent, Linda Richardson, over the last four years has served as a director on the Treasure Island Development Authority, a commissioner on the San Francisco Human Rights Commission, and as a member of the Bayview Hunters Point Area Committee of the San Francisco Redevelopment Agency. During this time, Respondent owned and was employed by ADR Continental Group, a public relations firm that has contracted with the City and County of San Francisco on multiple occasions. Respondent failed to timely disclose her income and interest in ADR Continental Group, as well as her ownership of various stocks,on her Annual Statement of Economic Interests (Form 700) for the years 2009, 2010,and 2011 in violation of Government Code Section 87300 (3 counts). Total Proposed Penalty: $600.

    Richardson - Stip

    22. In the Matter of Luis Herrera, FPPC No. 13/255. Staff: Senior Commission Counsel Neal Bucknell, Special Investigator Laura Jestes, and Political Reform Consultant Teri Rindahl. Respondent, Luis Herrera, while serving as City Librarian for the San Francisco Public Library, failed to report gifts received from the Friends of the San Francisco Public Library on Annual Statements of Economic Interests (Form 700) for calendar years 2009, 2010, and 2011 in violation of Government Code Section 87300 (3 counts). Total Proposed Penalty: $600.

    Herrera - Stip

    23-29 General Items

    23. Regulation 18329: Definition of Lobbyist. Staff: General Counsel Zackery P. Morazzini and Senior Commission Counsel Heather M. Rowan. Staff proposes that the Commission amend Regulation 18239 to extend an exception that currently applies to lobbyists and allow a person within a company who has knowledge or expertise to accompany a registered placement agent to a meeting with a public retirement board without requiring that person toregister as a lobbyist.

    Memo and Regulation 18329 

    24. Regulation 18421.5: Reporting an Expenditure for Paid Online Communications. Staff: General Counsel Zackery P. Morazzini and Senior Commission Counsel Heather M. Rowan. Staff proposes that the Commission adopt Regulation 18421.5 to create a more specific and easily identifiable report of when a committee pays a person or group to create online content on behalf of the committee. This item was considered at the August Commission Meeting, but continued to September for further discussion and proposed adoption.

    Memo and Regulation 18421.5

    25. Adoption of Amendment to Regulation 18521.5: Distribution of Leftover Funds by Ballot Measure Committees Controlled by Candidates for Elective State Office. Staff: General Counsel Zackery P. Morazzini. In response to a formal petition by the California Democratic Party, Staff proposes that the Commission adopt an amendment to Regulation 18521.5 permitting a ballot measure committee controlled by a candidate for elective state office, within 60 days prior to termination of the committee, to distribute leftover committee funds to a political party so long as thefunds are not used to support or oppose candidates for elective office.

    Memo, Petition and Regulation 18521.5

    26. Adoption of the Campaign Manual for Major Donor Committees. Staff: Lynda Cassady, Chief of Technical Assistance Division. The Commission is asked to adopt the proposed revision to the 2008 manual. Two drafts have been posted on the Interested Persons Page and staff has incorporated many comments into this proposed manual.

    Memo - Approval of Campaign Manual 5

    Major Donor Manual 

    27. Appointment of Vice-Chair.

    ENFORCEMENT MATTERS

    28. Request for Authority to File a Civil Complaint and Enter a Stipulated Judgment: In the Matter of Citizens for a Voice in Government, Major Funding by Investment Manager, Brandon Powers, Lysa Ray, and Chris Hansen, FPPC No. 13/869. Staff: Senior Commission Counsel Dave Bainbridge and Special Investigator Lee Myers. Citizens for a Voice in Government, Major Funding by Investment Manager (the “Committee”) received a $100,000 contribution from Chris Hansen on or about June 21, 2013 and made an $80,000 expenditure that same day. Brandon Powers is the principal officer for the Committee and Lysa Ray is the Committee’s treasurer. The Committee failed to file a semi-annual campaign statement for the January 1, 2013, through June 30, 2013, reporting period by July 31, 2013, in violation of Government Code Section 84200, subdivision (a) (1count). The Committee also failed to file a Statement of Organization within 10 daysof becoming a committee in violation of Government Code Section 84101, subdivision (a) (1 count). Chris Hansen, who qualified as a major donor upon making the contribution to the Committee, failed to file a semi-annual campaign statement for the January 1, 2013, through June 30, 2013, reporting period by July 31, 2013, in violation of Government Code Section 84200, subdivision (b) (1 count). The parties have agreed to have a civil judgment entered in this case. Total Proposed Penalty: $50,000.

    Citizens for a Voice in Government - Civil Case

    29. Administrative Hearing: In the Matter of Charles R. “Chuck” Reed, San José Fiscal Reforms, Mayor Reed, Chamber PAC And Issues Mobilization PAC Proponents, and Benjamin J. Roth (FPPC Case No. 12/761). Appearing on behalf of Complainant: Enforcement Division Chief Gary S. Winuk and Senior Commission Counsel Angela J. Brereton. Appearing on behalf of Respondents: James R. Sutton (SBN 135930), and Jesse A. Mainardi.

    Finding of Probable Cause

    Accusation 

    Notice of Hearing

    Complainant's Administrative Hearing Brief

    Respondents' Administrative Hearing Brief

    Complainant's Reply to Respondents' Administrative Hearing Brief

    Respondents' Reply to Complainant's Administrative Hearing Brief

    30. Executive Staff Reports

    Administrative Division Report. Staff: Chief of Administration, Tina Bass

    Sep 2013 Admin Report 

     

    Legislative Report. Staff: Legislative Coordinator, Sukhi Brar

    Sep 2013 Legislative Report

     

    Litigation Report. Staff: General Counsel, Zackery P. Morazzini

    Sep 2013 Litigation Report

     

    Legal Division Report. Staff: General Counsel, Zackery P. Morazzini

    Sep 2013 Legal Division Report

     

    Enforcement Division Report. Staff: Chief of Enforcement, Gary Winuk

    Sep 2013 Enforcement Division Report 

     

    Technical Assistance Division Report. Staff: Chief of Technical Assistance Division, Lynda Cassady

    Sep 2013 TAD Report

    31. Closed Session

    Closed Session 

    31. Pending Litigation (Gov. Code § 11126(e)(1)). Deliberation upon:

    • Request for Authority to File a Civil Complaint and Enter a Stipulated Judgment: In the Matter of Citizens for a Voice in Government, Major Funding by Investment Manager, Brandon Powers, Lysa Ray, and Chris Hansen, FPPC No. 13/869.
     
    • Administrative Hearing: In the Matter of Charles R. “Chuck” Reed, San José Fiscal Reforms, Mayor Reed, Chamber PAC And Issues Mobilization PAC Proponents, and Benjamin J. Roth (FPPC Case No. 12/761).

    Additional Information

    Meeting Information: The agenda and related documents are posted on the FPPC website at www.fppc.ca.gov. Materials submitted by the public regarding each agenda item will be made available at the meeting and on the website. For more information about the meeting, contact the Commission Assistant, 428 J Street, Suite 620, Sacramento, CA, 95814, Tel. (916) 322-5745.

    Written comments on agenda items should be submitted to the Commission no later than 12:00 p.m. the day before the meeting in order to afford the Commissioners adequate time to fully consider the comments. The fax number for comment letters is (916) 322-6440.

    Listen by Phone or Online: Members of the public may listen to the meeting by phone by calling (888) 751-0624; access code 723284; or watch the meeting or watch the live meeting via YouTube.

    Accessibility: The meeting location is accessible to the disabled. Persons who, due to a disability, need assistance in order to participate in this meeting should, prior to the meeting, contact the Commission Assistant at (916) 322-5745 (voice), (916) 322-6440 (fax). TTY/TDD and Speech-to-Speech users may dial 7-1-1 for the California Relay Service to submit comments on an agenda item or to request special accommodations for persons with disabilities. Please allow a reasonable period of time between the request and the meeting date.