Tag Archives: Fair Political Practices Commission

The Checkered History Of Streets And Highways Code §36612 — How The California Court Of Appeals Made BIDs Cry By Holding That They Were Subject To The Brown Act And The Public Records Act — And How Bad BIDmother Jackie Goldberg Soothed Their Hurt Feelings By Passing A Law Stating That They Weren’t Public Officials — Is It Constitutional? — It Hasn’t Been Adjudicated So Who Knows?!

The only reason that this blog even exists is that business improvement districts in California are subject to the California Public Records Act. And the first part of the story of how this came to be is fairly well known. In 1998 Hollywood property owner Aaron Epstein wanted to attend meetings of the Hollywood Property Owners’ Alliance1 and Kerry Morrison, who then as now would willingly brook no interference in her proprietary demesne, told him to go pound sand.

Instead of slapping the silica, though, Epstein filed suit against the BID, and the process culminated in the lovely holding, in Epstein v. Hollywood Entertainment District BID, that BIDs2 were subject to the Brown Act and the CPRA. This ushered anti-BID activists into a paradise from which we are unlikely to be expelled. Kerry Morrison didn’t take this outcome with any grace whatsoever and has been pissing and moaning about it from the outset all the way to the present day.

But that opinion isn’t the only authority that subjects BIDs to transparency laws. There is also the famous §36612 of the PBID Law of 1994, which states in no uncertain terms that BIDs are subject to both the Brown Act and the CPRA.3 It also states explicitly (and ominously) that BID board members and staff are not public officials. Obviously this section was added by the legislature after the Epstein ruling, but I never took the time to investigate the history.

Until now, that is. And what an obvious-after-the-fact surprise it was to find that the bill that added that section was written by none other than Jackie Goldberg, who as CD13 Councilmember during the formation of the Hollywood Entertainment District BID was known to have a great deal of blood on her hands already.4 But by March 2001, when Epstein was finally decided, Goldberg was in the Assembly, so naturally it was to her that the BIDdies, emotionally traumatized by the court’s decision,5 went running for comfort.

And in response to their pleas Goldberg introduced AB 1021 (2001) to coat the bitter pill of Epstein with some soothing syrup and to codify these changes in §36612 of the PBID law even while acknowledging that the legislature wasn’t going to be able to change the court’s holding 6 And I recently obtained a copy of the bill analysis prepared at the time for the Assembly’s Committee on Local Government to help them understand what they were voting for.7 Therein are laid out not only the provisions of the new law, but the complaints of the BIDdies, so the connection is perfectly clear.

The main concessions to the BIDdie agenda found in the code section are the explicit statement that BIDs are private corporations and that neither BID boards nor staff can be considered public officials for any reason. This last bit is tied in to the BIDs’ fear that board members might be subject to California’s political reform act and to Government Code §1090 and therefore to various ethics restrictions and financial disclosure requirements, although it’s not really clear to me that the language has that effect. I’m no kind of expert, though.

Another sop to the BIDdies provided here by Goldberg was the authorization of 10 year renewals. Previously BIDs could only renew for up to five years. In any case, turn the page for more detail, more non-expert discussion and, as always, a transcription of the document.
Continue reading The Checkered History Of Streets And Highways Code §36612 — How The California Court Of Appeals Made BIDs Cry By Holding That They Were Subject To The Brown Act And The Public Records Act — And How Bad BIDmother Jackie Goldberg Soothed Their Hurt Feelings By Passing A Law Stating That They Weren’t Public Officials — Is It Constitutional? — It Hasn’t Been Adjudicated So Who Knows?!

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In 1995 The City Attorney And The Fair Political Practices Commission Both Agreed That BIDs Were Government Agencies And Their Board Members Were Public Officials Subject To The Brown Act And The CPRA — So When Aaron Epstein Sued The City And The Hollywood BID In 1999 Why Did The City Take Kerry Morrison’s Side Even Though They Already Knew Epstein Was Right? — Probably Yet Another Case Of Yielding To Her Every Damn Whim No Matter How Dire The Consequences — Ironically The Same Lawyer, Patricia Tubert, Argued Both Contradictory Sides Of The Dispute

I’ve written many times about the monumental case Epstein v. Hollywood Entertainment District BID and will, I have no doubt, write about it many more times to come. The issue in 1998 was that Hollywood property owner Aaron Epstein thought that he ought to be able to attend BID meetings whereas executive director Kerry Morrison, then at the very dawn of her BIDdological career but as characteristically secretive as ever, refused to let him in to watch his money being spent.

He sued in 1999, claiming that the BID1 was required to comply with the Brown Act by virtue of §54952(c)(1)(A), which makes an entity of the following type subject to its transparency requirements:

A board, commission, committee, or other multimember body that governs a private corporation, limited liability company, or other entity that … [i]s created by the elected legislative body in order to exercise authority that may lawfully be delegated by the elected governing body to a private corporation, limited liability company, or other entity.

The case yielded a monumental opinion from the Court of Appeal, dripping with sarcasm and barely disguised contempt for the weak arguments of the defendants. It’s worth reading in its entirety, or take a look here for selections. But for our purposes here it’s enough to know that both the BID, driven by Ms. Kerry Morrison and her absolute disgust at the possibility of public oversight of her publicly funded activities, and the City of Los Angeles in the person of then-deputy-City-Attorney Patricia Tubert, argued vehemently that the BID was not in any way subject to the Brown Act.

So what a surprise it was, the other day, to obtain a copy of this 1995 report from the Los Angeles City Attorney, authored by none other than Patricia Tubert, which explicitly stated that in the opinion of the City Attorney BIDs were in fact subject to the Brown Act, exactly as the Court of Appeal ruled in 2001 over the City’s objections. And attached to this report was a 1994 opinion issued by the Fair Political Practices Commission in response to an explicit request from none other than the Los Angeles City Attorney which reached precisely the same conclusion.

And not only that but both agencies agreed that BID board members are in fact public officials with respect to these laws and also subject to state prohibitions on conflicts of interest.2 So it’s really a mystery now why in 1998 when Aaron Epstein wanted to attend BID meetings the City of Los Angeles didn’t just tell Kerry Morrison and her infernal board of directors that they had to let him in. Why they spent three long and undoubtedly expensive years defending a position that they already knew to be wrong.

At this late date and because the attorney client privilege between the City and the City Attorney is doubtlessly implicated, we are probably never going to know for sure why they made the obviously wrong decision to defend an indefensible position. But if they were thinking about Kerry Morrison and her weirdo schemes back then like they are now, and why wouldn’t they have been, they wouldn’t have needed any more of a reason beyond Kerry Morrison’s request. Shameful. And harmful. But not a surprise. Turn the page for selected transcriptions.
Continue reading In 1995 The City Attorney And The Fair Political Practices Commission Both Agreed That BIDs Were Government Agencies And Their Board Members Were Public Officials Subject To The Brown Act And The CPRA — So When Aaron Epstein Sued The City And The Hollywood BID In 1999 Why Did The City Take Kerry Morrison’s Side Even Though They Already Knew Epstein Was Right? — Probably Yet Another Case Of Yielding To Her Every Damn Whim No Matter How Dire The Consequences — Ironically The Same Lawyer, Patricia Tubert, Argued Both Contradictory Sides Of The Dispute

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Burbank BID Violated Brown Act In 2016 By Voting To Donate $50,000 To A Political Campaign Without Having Agendized The Matter — Local Activist David Spell Calls For Disestablishment — Burbank City Attorney Forced To Address The Question Of Whether BID Assessments Are Public Funds — Answers With A Resounding “Maybe”!


So it turns out that a major scandal involving a business improvement district has been brewing up in Burbank since September 2016. The short version of the story is that a Burbank BID violated the Brown Act and may have violated State laws forbidding the use of public funds in political campaigns. A local activist, David Spell, turned them in to the LA County DA and the Fair Political Practices Commission.1

In December 2016 the Burbank City Attorney published a fascinating report on the episode,2 which may shine a great deal of light on the legal status of BID assessments as public funds. Furthermore, Spell called for the Burbank City Council to hold a disestablishment hearing as required by Streets and Highways Code §36670(a)(1).3

If this money does turn out to be public, a lot of really interesting consequences would ensue, which is another part of what makes this episode so important. As always when BIDs and the law intersect, the details are unavoidably technical, which is no doubt why the L.A. Times skips over them and also why I’m hiding them below the fold!
Continue reading Burbank BID Violated Brown Act In 2016 By Voting To Donate $50,000 To A Political Campaign Without Having Agendized The Matter — Local Activist David Spell Calls For Disestablishment — Burbank City Attorney Forced To Address The Question Of Whether BID Assessments Are Public Funds — Answers With A Resounding “Maybe”!

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In Defense Of Counting Neighborhood Councils As City Agencies In The Context Of The Municipal Lobbying Ordinance

As you may well know, the City Ethics Commission is in the process of revising the Municipal Lobbying Ordinance. The CEC’s policy staff, led by heroic and long-suffering director Arman Tarzi, has compiled a fantastically useful report on the proposals, and a series of three interested persons meetings are scheduled starting tomorrow to gather even more input.

Right now it looks like at least four of five Commissioners are leaning towards giving the lobbyists whatever random nonsense they request, so your comments and input are essential to the future of the City at this point. Whether or not you can attend any of the meetings, I hope you will be able to send comments to ethics.policy@lacity.org, probably before October 17, which is when the Commission is scheduled to discuss the matter. And I’m also writing posts on particular parts of the proposal which seem important. This one, on including neighborhood councils as City agencies for lobbying disclosure purposes, is the third in the series, and the other two are:

And read on for a description of the proposal and reasons to support it!
Continue reading In Defense Of Counting Neighborhood Councils As City Agencies In The Context Of The Municipal Lobbying Ordinance

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