Secession Groups May Have to Name Donors

Rejecting the advice of its attorneys, a state political watchdog panel agreed Friday to consider requiring secession groups such as Valley VOTE to identify contributors.

The state Fair Political Practices Commission stopped short of voting to approve such a requirement, but members said such a rule appears to have merit.

After hearing state and Los Angeles officials endorse revealing information to the public, the FPPC directed its staff to draft disclosure options for its January meeting. Valley VOTE representatives opposed disclosure of finances during petition drives, and questioned whether the agency can order it.

“I’m in favor of disclosure if it can be worked out,” said commissioner William Deaver. “That [secession] is essentially a political process and the voters have told us they want to know about who is behind those things.”

Commissioner Carol Scott, a Sherman Oaks attorney, also voiced an interest in requiring disclosure, but the panel asked its staff to address several potential problems.

Commissioners said they would not want a new rule to be so broad that it would require disclosure whenever a neighborhood petitions City Hall on a street light.

Deaver suggested that a dollar threshold be set, so that only issues attracting expensive campaigns would be covered.

Jeff Brain, president of Valley VOTE, questioned whether the FPPC has the legal authority. “It’s one thing to want to do it. The question is whether it’s in their realm to do it,” said Brain.

Brain said that because Valley VOTE’s petition drive is over, it would not be affected by any rule change. The group would abide by any future rule, but Brain said he agreed with FPPC attorneys who argued that a petition drive for a secession study is different from other initiatives.

“The petition is not an attempt to influence voters,” said Brain, who testified before the state panel.

Valley VOTE, which successfully collected enough signatures to trigger a study of San Fernando Valley cityhood, estimated in July that it had raised and spent $500,000 on the secession issue, including about $290,000 on the petition drive.

After repeated requests by The Times, Valley VOTE last year identified some of its donors, including the Daily News of Los Angeles, which contributed $60,000. Not all donors’ names were released.

Some city officials, including Councilman Mike Feuer, say voters have a right to know who is paying for a cityhood drive.

The commission agreed to pursue possible rules despite recommendations from the panel’s attorneys that it not require secession groups to disclose those who contribute to their causes until the issue reaches the ballot.

“The good news is they agree there is merit to look into possible disclosure,” said LeeAnn Pelham, deputy director of the Los Angeles Ethics Commission.

Pelham told the FPPC on Friday that the city panel supports disclosure for secession groups, just as it is required of any group petitioning for other ballot initiatives.

“We encourage this commission to conclude that this is a loophole that needs to be corrected so that, in the future, voters facing secession efforts are fully informed,” Pelham told the FPPC.

Under state law, a secession drive triggers a study by the Local Agency Formation Commission, which must determine that the breakup proposal does not cause financial harm to either the new city or the old one. If the commission determines there is no substantial harm, the matter can go to the voters citywide.