Rules committee vetoes two Ethics Commission regulations after debate over home fundraising language

The Rules Committee voted unanimously on May 13, 2024 to veto two Ethics Commission regulations and send the veto message to the full Board, after a lengthy debate over language that would treat the "value of the use of the home or office as a fundraising event venue" as an in‑kind contribution for certain barred donors.

Supervisors raised concerns the regulation would be overbroad, chilling grassroots campaign activity and inadvertently barring spouses, roommates and employees from hosting events. Supervisor Hillary Ronan said she was troubled that including the "value of the home" in the regulation might create unintended consequences for ordinary residents who host small gatherings. She said she was open to measures that prevent barred donors from spending money to host events but did not want to broadly assign a contribution value to the use of a home or office.

Michael Canning of the Ethics Commission said the regulation was modeled on state rules that bar lobbyists and other prohibited actors from using a home or office as a workaround to give support, and that the local regulation seeks to close a loophole where contractors or those with pending land-use matters host fundraisers they otherwise could not make direct contributions to. Deputy City Attorney Anne Pearson said the regulation appears as part of a broader body of rules and that the amended language was intended to be read alongside existing prohibitions on contractor contributions.

After deliberation and requests for clearer drafting and confirmation about the scope of the change, Chair Ronan moved to veto regulation 1.126-9 and regulation 1.127-4 and send the veto to the full Board with recommendation; the motion passed unanimously. The clerk noted the Board’s deadline for action on the veto is June 17.