BILL ANALYSIS Ó
SB 1441
Page 1
Date of Hearing: July 2, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
SB 1441 (Lara) - As Amended: April 3, 2014
Policy Committee: ElectionsVote:6-0
(Consent)
Urgency: No State Mandated Local Program:
Yes Reimbursable: No
SUMMARY
This bill:
1)Provides that a payment, of any amount, made by a lobbyist for
the costs of a political fundraising event at the lobbyist's
home is considered a contribution, for purposes of the
Political Reform Act (PRA), and thus is prohibited under
existing PRA provisions prohibiting lobbyist contributions to
elected officials or candidates for elected office.
2)Provides that a payment, of any amount, made by a lobbying
firm for the costs of a fundraising event at the firm's office
is considered a contribution and is thus subject to disclosure
under the PRA.
FISCAL EFFECT
Minor absorbable costs to the Fair Political Practices
Commission (FPPC) for enforcement, potentially offset to some
extent by penalty revenues.
COMMENTS
1)Background . The PRA, among other things, requires candidates
and committees to disclose contributions made and received and
expenditures made in connection with campaign activities. When
individuals or entities make payments in connection with
holding a fundraiser for a candidate, such payments ordinarily
are considered contributions to the candidate. Current law
allows for certain exceptions, however. For example, payments
made by the occupant of a home or office for costs related to
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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 five hundred
dollars ($500) or less.
Although existing law prohibits lobbyists from making
contributions to elected state officers or candidates for
elected state office, the above exception for the purposes of
hosted fundraising events does not exclude events hosted by
lobbyists. A lobbyist, therefore, 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 five hundred dollars ($500).
2)Recent FPPC Action . In February, 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 and provided items such items as
beverages, flower arrangements, and cigars. The FPPC
determined that the total cost of the fundraisers hosted by
the lobbyist at his home, including the value the items
provided by the lobbyist, exceeded five hundred dollars
($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
its largest penalties ever against a lobbyist and issued
warning letters to the elected officers and candidates who
benefitted from the fundraisers.
3)Purpose . According to the author, "Recent events have raised
significant questions about the transparency and
accountability of rules and political practices in state
government. In an effort to tighten state law, we are
authoring SB 1441 which bans fundraisers from being held at
the home of a lobbyist or at a lobbying firm. This will
delete ambiguity and ensure that lobbyists are not providing
illegal contributions to state elected officials."
4)Related Legislation . AB 1673 (Garcia), pending in Senate
Elections and Constitutional Amendments, provides that a
payment, of any amount, made by the occupant of a home or
office of a lobbyist, lobbying firm, or lobbyist employer for
a meeting or fundraising event to benefit a candidate or
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campaign committee is considered a contribution and is thus
subject to disclosure under the PRA.
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081