Ethics Commission approves one streamlined lobbyist stipulation, defers another amid nonprofit-classification questions

The San Francisco Ethics Commission on July 16 approved a streamlined stipulated agreement resolving an enforcement matter in which a lobbyist had failed to report employer payments tied to lobbying contacts. Staff said the respondent corrected the public filings and returned a signed agreement within 30 days, qualifying the matter for the commission's accelerated resolution program.

Jeff Pierce of the commission's enforcement division and Senior Investigator Eric Willett told commissioners that the respondent had reported who she contacted and the topics, but not the portion of her salary that covered the time spent making those contacts. Willett said the corrective action and timely response placed the case in a Tier 1 penalty range: a $500 base modifier plus 15% of the previously unreported payments. In the matter taken up on July 16, staff calculated the stipulated amount at $1,112, reflecting $612 as 15% of the previously unreported payments. Commissioner Bush pressed staff on whether the omissions spanned multiple years; staff said the corrections were self-reported and the amended filings have been verified.

Public callers praised the commission for enforcing the law but questioned whether the penalties were large enough; one caller noted a $50-a-day civil penalty that can accrue for failures to cure reports. The commission voted to approve the stipulated settlement unanimously.

A second, similar matter involving Jennifer Stojkovic prompted more extended discussion about the classification of an outside organization referred to in the staff report as "SF City." Commissioners and counsel debated whether the entity was a C3, C4, or C6 nonprofit for purposes of exemptions in the lobbyist ordinance and whether that classification affects reporting obligations. Given lingering uncertainty about the organization's IRS filing type and the scope of exemptions (Form 990 vs. 990-N thresholds), Commissioner Bush moved to place that stipulated settlement on next month's calendar so staff could provide a clearer factual record. The motion passed 4–1.

What happens next: The approved stipulated settlement is final as adopted; the Stojkovic matter will return to the commission after staff confirms the nonprofit classification and clarifies which reporting exemptions, if any, apply.

Authorities referenced: the Ethics Commission's lobbyist ordinance and the commission's Streamlined Accountability Resolution Program (SARP).