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Ethics Commission adopts Prop C implementing rules after heated debate over staff-time reporting and small-nonprofit burdens
Summary
The commission approved multiple implementing regulations for Proposition C, adopting a rule that counts payments at the time an influencing activity occurs, shortening the look-back window, and clarifying member/newsletter exemptions. Commissioners debated whether staff salaries should count toward the $2,500 threshold and approved a fee waiver for smaller 501(c)(3) groups, amid sustained public comment raising concerns about burden on grassroots nonprofits.
The San Francisco Ethics Commission spent the bulk of its Feb. 29 meeting debating draft regulations to implement Proposition C and adopted several measures to clarify when payments count as expenditure lobbying, how to treat staff time and membership communications, and which small nonprofits qualify for a registration fee waiver.
After staff presented the draft, commissioners focused on Section 2.105-5, which defines when a payment toward expenditure lobbying is considered "made." Commissioners agreed to revised language tying the trigger to the date an activity to solicit or urge communication with city officials "takes place" rather than solely the date a vendor invoice is incurred. The commission also shortened the staff-proposed 12-month look-back to six months in the final motion.
Why it matters: Proposition C creates a new category of expenditure lobbyists who must register and report when they spend $2,500 or more in a calendar month on activities that urge…
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