BILL ANALYSIS Ó
AB 1673
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 1673 (Garcia)
As Amended August 13, 2014
2/3 vote
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|ASSEMBLY: |75-0 |(May 8, 2014) |SENATE: |35-0 |(August 26, |
| | | | | |2014) |
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Original Committee Reference: E. & R.
SUMMARY : Provides that specified payments made by lobbyists and
lobbying firms are considered "contributions" under the
Political Reform Act (PRA).
The Senate amendments delete the Assembly version of this bill
that would have provided that a payment made by an occupant of a
home or an office who is a lobbyist, lobbying firm, or lobbyist
employer for costs related to a meeting or fundraising event
held in the occupant's home or office is considered a
"contribution" under the PRA, regardless of the costs of the
meeting or fundraising event, and instead:
1)Provide that a payment made by a lobbyist or a cohabitant of a
lobbyist for costs related to a fundraising event held at the
home of the lobbyist, including the value of the use of the
home as a fundraising event venue, is a contribution for the
purposes of the PRA regardless of the amount of the payment.
Provide that a payment described above is attributable to the
lobbyist for purposes of the prohibition against a lobbyist
making a contribution to an elected state officer or candidate
for elected state office.
2)Provide that a payment made by a lobbying firm for costs
related to a fundraising event held at the office of the
lobbying firm, including the value of the use of the office as
a fundraising event venue, is a contribution for the purposes
of the PRA regardless of the amount of the payment.
AS PASSED BY THE ASSEMBLY , this bill revised the definition of
"contribution" under the PRA to include any payment made by an
occupant of a home or an office who is a lobbyist, lobbying
firm, or lobbyist employer for costs related to a meeting or
fundraising event held in the occupant's home or office,
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regardless of the costs of the meeting or fundraising event.
FISCAL EFFECT : According to the Senate Appropriations
Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS : The PRA, among other things, requires candidates and
committees to disclose contributions made and received and
expenditures made in connection with campaign activities. The
term "contribution" is defined as any payment for political
purposes for which full and adequate consideration is not
provided to the donor.
When individuals or entities make payments in connection with
holding a fundraiser for a candidate, such payments ordinarily
are considered contributions to the candidate. However, current
law allows for some exceptions. For example, payments made by
the occupant of a home or office for costs related to any
meeting or fundraising event in the occupant's home or office
are not considered contributions under the PRA if the costs for
the meeting or fundraising event are $500 or less.
Although existing law prohibits lobbyists from making
contributions to elected state officers or candidates for
elected state office if that lobbyist is registered to lobby the
governmental agency for which the candidate is seeking election
or the governmental agency of the elected state officer, the
exception to the definition of the term "contribution" for the
purposes of hosted fundraising events does not exclude events
hosted by lobbyists. As a result, a lobbyist could hold a
fundraiser at his or her home and the cost would not be
considered a contribution, as long as the total cost of such an
event did not exceed $500. If other parties donate money or
goods in connection with the event, their payments must also be
counted to determine if $500 has been spent in connection with
the fundraiser. This includes goods or services provided by the
candidate or any other person attending the event. If the cost
of the event exceeds $500, all payments are counted as
contributions.
In February of this year, the FPPC approved a settlement in a
case in which a registered lobbyist hosted campaign fundraisers
for state elective officers and candidates at his house where he
provided items such as beverages, flower arrangements, and
cigars. The FPPC investigated and determined that the total
cost of the fundraisers hosted by the lobbyist at his home,
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including the value the items provided by the lobbyist, exceeded
$500. As a result, the items provided by the lobbyist during
the fundraisers constituted non-monetary contributions to the
campaign committees of the elective officers and candidates who
benefitted from the fundraisers - all violations of the PRA. As
a result, the FPPC levied one of the largest penalties against a
lobbyist and issued warning letters to the elected officers and
candidates who benefitted from the fundraisers.
California voters passed an initiative, Proposition 9, in 1974
that created the FPPC and codified significant restrictions and
prohibitions on candidates, officeholders, and lobbyists. That
initiative is commonly known as the PRA. Amendments to the PRA
that are not submitted to the voters, such as those contained in
this bill, must further the purposes of the proposition and
require a two-thirds vote of each house of the Legislature.
The Senate amendments delete the Assembly version of this bill,
and instead add provisions that are identical to SB 1441 (Lara,
et al.) of the current legislative session. While this bill was
substantially amended in the Senate, the effect of this bill, as
approved by the Senate, is significantly similar to the version
of the bill that was approved by the Assembly. Consequently,
this bill, as amended in the Senate, is consistent with Assembly
actions.
Analysis Prepared by : Nichole Becker / E. & R. / (916)
319-2094
FN:
0004729