Fair Political Practices Commission v. Californians Against Corruption

134 Cal. Rptr. 2d 659, 109 Cal. App. 4th 269, 2003 Daily Journal DAR 5770, 2003 Cal. Daily Op. Serv. 4499, 2003 Cal. App. LEXIS 792
CourtCalifornia Court of Appeal
DecidedMay 29, 2003
DocketC038246
StatusPublished
Cited by9 cases

This text of 134 Cal. Rptr. 2d 659 (Fair Political Practices Commission v. Californians Against Corruption) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fair Political Practices Commission v. Californians Against Corruption, 134 Cal. Rptr. 2d 659, 109 Cal. App. 4th 269, 2003 Daily Journal DAR 5770, 2003 Cal. Daily Op. Serv. 4499, 2003 Cal. App. LEXIS 792 (Cal. Ct. App. 2003).

Opinion

*272 Opinion

NICHOLSON, Acting P. J.

In 1995, Ravi Mehta, Chairman of the Fair Political Practices Commission (FPPC or Commission), signed a document delegating some of the Commission’s functions to employees of the FPPC. Before the FPPC ratified the delegation, the employees held proceedings against an organization and two of its treasurers for violations of the Political Reform Act. 1 When the organization and treasurers failed to respond to notices from the FPPC employees, a default decision was entered against the organization and treasurers including a fine of $808,000.

The FPPC initiated this action to obtain a civil judgment against the organization and its treasurers. The trial court entered judgment in the FPPC’s favor for almost $1.1 million, including interest. On appeal, defendants assert (1) the FPPC was not entitled to judgment pursuant to Government Code section 91013.5 because it did not follow the procedures set forth in the Political Reform Act and implementing regulations, (2) the FPPC failed to consider mitigating evidence, and (3) the penalty was unconstitutionally excessive. We affirm.

Background

Californians Against Corruption (CAC) was organized on March 26, 1992, with Carl Russell Howard as treasurer. Stephen J. Cicero was later the treasurer from July 1993 to April 1994. 2 CAC used money it raised primarily to fund a campaign to recall Senator David Roberti. From January 1992 to June 1994, CAC received approximately $141,559 in contributions and expended approximately $103,091.

Ravi Mehta became chairman of the FPPC on January 14, 1995. Several days later, he signed a document entitled “Delegation of Authority.” Citing provisions of the Government Code and regulations concerning the FPPC, he purported to “delegate the statutory, regulatory, and administrative duties and authority of the Executive Director” to Robert Tribe, Jeevan Ahuja, and Steven G. Churchwell. Specifically, the document stated that Ahuja was to have “the authority to conduct probable cause proceedings, including, but not limited to, making a determination as to the existence of probable cause . . . .”

In June 1995, Jeevan Ahuja presided at a hearing to determine whether probable cause supported proceedings against defendants for violations of the Political Reform Act. Although they were given notice of the hearing, *273 defendants did not attend and did not send counsel. On June 29, 1995, Ahuja signed an order finding “probable cause to believe that [defendants] violated provisions of the Political Reform Act. . . .”

On August 8, 1995, Robert Tribe filed an accusation against defendants asserting 404 violations of the Political Reform Act and seeking a penalty of $2,000 for each violation. The following chart shows the allegations against defendants.

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*274 The FPPC sent the accusation to defendants. Because defendants did not respond with a notice of defense within 15 days, Tribe, on October 20, 1995, signed a default decision and order finding defendants violated the Political Reform Act as alleged in the accusation and imposing a fine of $808,000. Ravi Mehta signed the default decision and order on November 2, 1995. Defendants filed a petition for writ of mandate, but the petition was later dismissed for lack of prosecution.

At a meeting of the Commission on April 4, 1996, it was noted that Mehta signed the January 20, 1995 delegation document. The notes of the Commission hearing continue: “Commissioner Rushford recommended the appointment of Mr. Churchwell and Mr. Tribe as Acting Co-Executive Directors with divided responsibilities. Mr. Churchwell will handle the probable cause hearings and Mr. Tribe will do the rest of the Executive Director responsibilities. In addition, this motion will ratify Chairman Mehta’s assignment of those duties to them from January 20, 1995, when the delegation was first made. . . . The motion was carried.”

On January 3, 1996, the FPPC filed an action against defendants to obtain a civil judgment in the amount of the fine, as allowed by Government Code section 91013.5. Defendants answered the complaint, and the FPPC moved for summary judgment. The trial court granted the FPPC’s motion and later entered judgment against defendants for $808,000, plus $287,513.33 in interest. 3

Discussion

I

Compliance with Required Procedures

After the FPPC finds that an organization or person has violated the Political Reform Act and imposes a fine, it may obtain a civil judgment requiring payment of the fine. In a proceeding to obtain a civil judgment, however, the FPPC bears the burden of establishing several prerequisites, including a showing that the fine was imposed following the procedures set forth in the Political Reform Act and implementing regulations. (Gov. Code, *275 § 91013.5.) 4 Defendants argue that the FPPC was not entitled to judgment in this matter because it did not establish the fine was imposed following the proper procedures when it delegated Commission functions to Ahuja and Tribe. We conclude defendants cannot make this argument here because they did not challenge the authority of FPPC officials in earlier proceedings.

A. Political Reform Act

The Political Reform Act was adopted by initiative in 1974. It established the FPPC and charged it with primary responsibility for the impartial, effective administration and implementation of the Political Reform Act. (Consumers Union of U.S., Inc. v. California Milk Producers Advisory Bd. (1978) 82 Cal.App.3d 433, 436 [147 Cal.Rptr. 265].)

The FPPC appoints an executive director who must act in accordance with applicable laws, policies, and regulations. (Gov. Code, § 83107.) 5 “The Commission may delegate authority to the chairman or the executive director to act in the name of the Commission between meetings of the Commission.” (Gov. Code, § 83108.)

The first phase of FPPC proceedings after investigation of an alleged violator of the Political Reform Act is to determine whether there is probable cause to believe a violation has occurred. The Government Code provides for a determination of probable cause by the Commission. (Gov. Code, § 83116.) By regulation, however, this determination has been delegated to the executive director: “The Executive Director may find there is probable *276 cause to believe a violation has occurred if the evidence is sufficient to lead a person of ordinary caution and prudence to believe or entertain a strong suspicion that a proposed respondent committed or caused a violation. A finding of probable cause by the Executive Director does not constitute a finding that a violation has actually occurred.” (Cal. Code Regs., tit. 2, § 18361, subd.

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134 Cal. Rptr. 2d 659, 109 Cal. App. 4th 269, 2003 Daily Journal DAR 5770, 2003 Cal. Daily Op. Serv. 4499, 2003 Cal. App. LEXIS 792, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fair-political-practices-commission-v-californians-against-corruption-calctapp-2003.