City Council Meeting – Council Member Items Report
To: City Council
From: Chad Williams, Councilman ; Pat Burns, Mayor; Butch Twining, Councilman Date: May 6, 2025
Subject: SUSPECTED CAMPAIGN FINANCE AND CHARITABLE LAW VIOLATIONS
2000 Main Street, Huntington Beach, CA 92648 | www.huntingtonbeachca.gov
ISSUE STATEMENT
We have conducted an informal independent investigation of the financial dealings of the Friends of the Huntington Beach Public Library, a registered 501(c)(3) nonprofit which reported over $524,000 in grants distributed in 2023.
It appears that a portion of those funds were contributed to a political action committee (PAC) Citizens for Good Governance (FPPC ID #1454094)—which at the time was registered as a ballot-measure-specific PAC. It also appears that the PAC subsequently amended its status to become a general-purpose committee, and then transferred $10,000 to Our Library Matters, Vote Yes on A & B (FPPC ID #1478194), a ballot-measure-specific PAC. The same individual appears to serve as treasurer for both the 501(c)(3) and the ballot measure committee.
These financial dealings suggests potential violations of IRS law, which generally prohibits 501(c)(3) organizations from participating in political campaigns (IRC § 501(c)(3); § 4955).
In addition, the California Political Reform Act may have been violated, particularly related to earmarked contributions (Gov. Code § 84302), coordinated expenditures (Title 2 CCR § 18402.2), and failure to accurately disclose the origin and use of campaign funds.
RECOMMENDED ACTION
Approve the Mayor to work with the City Attorney to file a complaint(s) on behalf of the City Council with the California Fair Political Practices Commission (FPPC) and/or the Internal Revenue Service (IRS) regarding suspected campaign finance and charitable law violations.
ENVIRONMENTAL STATUS
Not applicable.
STRATEGIC PLAN GOAL
Not Applicable - Administrative Item.