As the Elk Grove mayor and city council release campaign financing statements, keep an eye out for two things

In the next few days, elected official across California who have accepted campaign contributions in the first six months of 2025 will be disclosing that information on their California Form 460. Among those reporting their campaign cash-raising activities will be the mayor and the city council of Elk Grove.

If you review their disclosures, there are two types of entries to note. One is for contributions of $249, and the other will be from trade associations, particularly builder groups.

Let's look at the reasons why these are noteworthy.

It all has to do with the Levine Act, also known as California Senate Bill 1439.Enacted in 2023, the legislation includes a provision referred to as a conflict of interest clause.

There are two main items in the clause.

As it relates to the city of Elk Grove, the clause says anytime a contribution of $250 or more is received by an elected official, before participating in any decision in a proceeding involving a license, permit, or other entitlement for use (including specific contracts), an official who received a from that party in the last 12 months must disclose that fact on the record.

Here is the real problem for elected officials and their contributors - if the official knows or has reason to know that the party or participant who made the contribution has a financial interest in the decision, the official must not make – or participate in making – the decision.

Of course, like criminals who are always one step ahead of the law, any self-respecting Elk Grove elected official will find a workaround. That is where groups like the North State Building Industry Association come into play. 

As an association, they will not have an interest in any one particular project a city council considers, so they are exempt. As one building industry executive with interests in Elk Grove was heard saying, instead of giving money directly to Mayor Bobbie Singh-Allen or any member of the city council, they will give money to groups like the North State BIA, which will then essentially launder the money and get it to the appropriate elected officials.

Under California law, it is illegal for a contributor to a group like the North State BIA to direct where the money should go. The contributor to the North State BIA cannot tell them, "I have a big project in Elk Grove, and I want to be sure the mayor and city council each receive $5,000 from this $25,000 contribution."

But who will stop them? It is against California Fair Political Practices Commission rules for a contributor to direct an association on how their money should be distributed; however, we have sound reason to believe that this is precisely what will be happening.  

Besides, if, by some slight chance, the professional fundraising bundlers at groups like the North State BIA are caught, what are the consequences? A small civil fine from the FPPC and a slap on the wrist. 

Given that elected officials do not want to be forced to publicly disclose they have a conflict of interest on a project, much less be forced to recuse themselves from voting, we guess that $249 contributions will be common. Furthermore, keep an eye on substantial contributions from trade groups that will be bundling the money for their members to obscure who is funding the campaigns.

One controversial project on the horizon for the Elk Grove City Council is the Summer Villas development. To see how Mayor Singh-Allen and the city council will vote on the project, keep an eye on the money.