The Political Reform Act of 1974 prohibits a public official from using their official position to make, participate in making, or influence a governmental decision in which the official knows or has reason to know that the official has a financial interest, as specified. Under the act, a public official has a financial interest in a decision if it is reasonably foreseeable that the decision will have a material financial effect on, among other things, a source of income to the official aggregating $500 or more in value within the 12 months before the decision is made.
This bill would create a general exception to that rule by providing that it is not reasonably foreseeable that a public official has a material financial interest in a decision regarding certain nonprofit organizations, including labor organizations, agricultural organizations, business leagues, and chambers of commerce, where the nonprofit organization is a source of income to the public official, the decision solely involves a member or members of the nonprofit organization, and the sole financial effect of the decision is that it may result in an increase or decrease of dues or members of the nonprofit organization.