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Friday, October 2, 2026

Newsom Eliminates Exemption from California's Pay-to-Play Law - Pillsbury Winthrop Shaw Pittman

After 40 years of being exempt, local elected officials become subject to “pay-to-play” and recusal requirements.

10.10.22

California Government Code Section 84308, commonly referred to as the “Levine Act,” was enacted in 1982 to curb pay-to-play practices. Under the existing law, a party seeking a license, permit or other entitlement for use may not contribute more than $250 to an officer of the relevant agency while the proceeding is pending and for three months following a decision. Additionally, an officer of an agency must recuse him or herself from a decision involving a license, permit or other entitlement for use if the officer has received a contribution of more than $250 from a party, participant or his or her agent within the preceding 12 months.

If an officer receives a disqualifying contribution and returns it within 30 days from the time the officer knows (or should have known) about the contribution and the proceeding, the officer may participate in the proceeding.

The law covers all elected and appointed officers of an “agency,” as well as candidates for elective public office. However, coverage is significantly narrowed by the definition of “agency,” which exempts the judicial branch, the Legislature, the Board of Equalization, constitutional officers, and local agencies whose members are elected by the voters. Because of this narrow exemption, the law typically only impacted appointed members of local boards and commissions, such as planning commissions.

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