2025 Revisions to the Levine Act: Campaign Contribution Rules for Public Officials
Overview of the Levine Act [SB 1243 and SB 1181]
The Levine Act (the “Act”), codified at Government Code Section 84308, was originally enacted in 1982 to limit campaign contributions made to public officials by parties to an entitlement proceeding before that official’s agency. Under the original law, a public official cannot accept, solicit, or direct a campaign contribution from a party or participant to a proceeding for a license, permit, or other types of entitlement before that official in an amount exceeding $250 when the proceeding is pending and for three months after the final decision. Further, if a public official has accepted such a contribution in excess of $250 in the 12 months prior to the decision on the proceeding, the official must disclose the contribution and must recuse him- or herself from the decision-making process, unless they return the contribution within a designated cure period.
This restriction extends to agents acting on behalf of a party or participant. Prior to 2022, the Act only applied to state officials, those with business before state officials, and to officials of local governmental bodies whose members are not elected directly by the voters, such as planning commissions and LAFCOs. The Act was significantly expanded in 2022 by Senate Bill (“SB”) 1439, applying its provisions to local elected officials and extending the restriction period from three to 12 months after a final decision.
Why Amendments to the Act Were Necessary
The implementation of SB 1439 in 2022 exposed several practical difficulties. Public officials reported confusion about compliance due to unclear definitions and procedural complexities, such as determining who qualifies as a “participant” or an “agent.” Additionally, the low contribution threshold of $250—unchanged since the 1980’s—was viewed as outdated given inflation and modern campaign financing norms. The heightened restrictions inadvertently discouraged political participation and promoted the use of campaign ‘dark money’—independent, less transparent contributions outside the scope of public disclosure laws. This created a chilling effect on legitimate campaign contributions, undermining transparency and public trust in the political process.
SB 1243 and SB 1181 are effective January 1, 2025, and seek to address these concerns while preserving the original intent of the Levine Act to prevent undue influence on public officials.
Overview of SB 1243 and SB 1181 Amendments
SB 1243 and SB 1181 introduced key amendments to the Levine Act including:
1. Increased Contribution Threshold:
The threshold contribution amount increased from $250 to $500.
2. Exemptions for Specific Proceedings:
While the Act applies to most actions taken by elected officials, certain proceedings by the elected officials are exempted from the Act’s restrictions, including:
- Competitively bid contracts that are required by law, agency policy, or agency rule to be awarded pursuant to a competitive process.
- Labor contracts.
- Personal employment contracts.
- Contracts between two or more governmental agencies.
- Non-financial agreements where neither party receives compensation.
- Low-value contracts under $50,000.
- Routine reviews of development agreements, unless a material modification or amendment is proposed.
3. When a Party Must Disclose a Contribution:
The prior version of the law simply stated that parties (as opposed to elected officials) must disclose contributions over $500 to the elected officials making a decision on the entitlement on the record. Prior Fair Political Practices Commission (“FPPC”) regulations required disclosures to be made at the time of the application. However, the recent statutory amendments now require disclosure at any time before the date of decision by the agency. Proposed FPPC regulations further clarify that the party must disclose the contribution on the record at least 30 days before the decision. This disclosure by parties helps alert the public officials that they need to disclose and recuse or return the contribution, if within the cure period.
4. Definition of “Agent”:
Codifies the former FPPC regulation defining “agent”, clarifying that an agent communicates with an agency for the purpose of influencing the proceeding on behalf of a party or participant for compensation.
5. Agent Contributions Clarification:
Contributions from agents are no longer aggregated with those of the party or participant they represent.
6. Extended Cure Periods:
Officials now have up to 30 days from the date of accepting, soliciting, or directing a contribution (whichever is latest) to return contributions of more than $500 and avoid the recusal requirements. This extension doubles the previous 14-day window, providing officials with more flexibility.
7. Clarified Scope of Applicability:
City Attorneys and County Counsel will be expressly exempted from the definition of an agency “officer” if the attorney’s role is to solely provide legal advice without final decision-making authority in the proceeding.
Disclaimer
This Legal Update / Bulletin is for educational purposes only as well as to give you general information and a general understanding of the law, not to provide specific legal advice. This update should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.
Authors
Kenneth Price
