San Francisco voters enacted Proposition T by an overwhelming majority in the November 2016 election; the measure was placed on the ballot by a unanimous vote of the San Francisco Ethics Commission. The measure will make an impact on those seeking to influence city officials and decisions, including lobbyists and lobbying firms as well as corporations and other entities that employ lobbyists. Proposition T will take effect on January 1, 2018, meaning that those planning to make contributions during the 2018 cycle should be mindful of these rule changes.

The voter-enacted measure amends the City of San Francisco’s Campaign and Governmental Conduct Code to impose tighter restrictions on lobbyists’ campaign contributions. Lobbyists registered to influence particular agencies will be barred from making contributions to current officeholders in such agencies and candidates seeking office in such agencies. Similarly, lobbyists registered to influence particular agencies may not bundle contributions to elective officers currently holding positions in such agencies or candidates seeking office in such agencies. These restrictions apply to lobbyists who were registered to influence particular agencies at any point during the previous 90 days, which may mean that conduct in late 2017 may bar contributions that are planned for early 2018.

Stricter limits on gifts to city officers will be imposed beginning January 1, 2018. Proposition T bars contact lobbyists (those that make certain numbers of contacts with city officers) and expenditure lobbyists (those that make certain payments to urge other persons to communicate with city officers) from giving any gift to a city officer, or the parent, spouse, domestic partner or dependent child of a city officer. Existing law—no longer applicable beginning in 2018—permitted gifts of $25 or less and gifts of exempted items, and it did not include family members within the scope of the gift restriction. Proposition T also prohibits payments to third parties for the purpose of paying for a gift to city officers or their family members. These prohibitions apply to gifts of travel, meaning any payment, advance or reimbursement for travel, including for transportation, lodging, and food and refreshment connected with the travel. The only exception to the gift prohibition is for gifts of food and refreshment worth $25 or less per occasion provided by 501(c)(3) organizations at public events.

Proposition T will require additional disclosure of lobbyist activities. Contact lobbyists and expenditure lobbyists will be required to report each agency the lobbyist has attempted to influence through contacts or expenditures. This new requirement supplements existing law, which requires lobbyists to disclose their clients, the names of each city officer contacted and each particular action the lobbyist sought to influence (as well as the outcome sought by the client). Proposition T will also require contact and expenditure lobbyists to update their registration and periodic disclosures within five days of a changed circumstance that requires an update of such information.

We advise clients who contribute to candidates or elected officials or engage or plan to engage in lobbying to review their activities in light of Proposition T and to consult with counsel to ensure compliance.

© 2017 Perkins Coie LLP