BILL ANALYSIS Ó
Senate Appropriations Committee Fiscal Summary
Senator Kevin de León, Chair
SB 1441 (Lara) - Campaign Contributions
Amended: April 3, 2014 Policy Vote: E&CA 5-0
Urgency: No Mandate: No
Hearing Date: May 5, 2014 Consultant: Maureen Ortiz
This bill does not meet the criteria for referral to the
Suspense file.
Bill Summary: SB 1441 revises the definition of campaign
"contribution" to include a payment made by a lobbyist for costs
related to a fundraising event held at the home of the lobbyist,
and to include costs related to a fundraising event held at the
office of the lobbying firm.
Fiscal Impact:
Minor, absorbable enforcement costs to the FPPC (General Fund)
Background: The Political Reform Act (PRA) 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.
Existing law prohibits a lobbyist from making, and an elected
state officer or candidate for elective state office from
accepting, a contribution if the lobbyist is registered to lobby
the governmental agency for which the candidate is seeking
election or the government agency of the elected state officer.
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 currently not considered contributions under
the PRA if the costs of hosting the event are $500 or less. If
other parties donate money or goods in connection with the
event, those payments must also be counted to determine if $500
threshold has been reached. This includes goods and services
provided by the candidate or any other person attending the
SB 1441 (Lara)
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event. If the total cost of the event exceeds $500, all
payments are counted as contributions and must be reported.
Proposed Law: SB 1441 revises the definition of "contribution"
to include a payment made by a lobbyist for costs related to a
fundraising event held at the home of the lobbyist, and to
include costs related to a fundraising event held at the office
of the lobbying firm.
Staff Comments: While current law bans lobbyists from making
campaign contributions (only the employer can) it does provide a
$500 exemption for any meeting or fundraising event held at the
home of a registered lobbyist. The FPPC recently approved a
settlement in a case where a registered lobbyist hosted campaign
fundraisers for state elective officers and candidates at his
home where items were provided such as beverages, flower
arrangements, and cigars which were determined to total over
$500. As a result, these items constituted non-monetary
contributions to the campaign committees and candidates who
benefited from the fundraisers, which are violations of the PRA.
This bill is part of a package of bills that are aimed at
strengthening the relationship between the citizens of
California and their state government - the California
Accountability in Public Service Act (CAPS Act). Recent events
have raised significant questions about the transparency and
accountability of rules and political practices in state
government. This package of bills is the most significant
change to political practices in California in at least twenty
years. SB 1441is a part of the CAPS Act and will delete
ambiguity and ensure that fundraisers from not being held at the
home of a lobbyist, or at the office of an employer of a
lobbyist in violation of the Political Reform Act.