AB 2840, as introduced, Lopez. Political Reform Act of 1974: travel.
The Political Reform Act of 1974 provides for the comprehensive regulation of campaign financing and related matters, including the reporting of gifts, as defined. The act prohibits specified officers from receiving gifts in excess of $440 in value from a single source in a calendar year. The act permits gift payments for the actual costs of specified types of travel that are reasonably related to a legislative or governmental purpose, or to an issue of state, national, or international public policy, and it exempts these payments from the annual limit on the value of gifts from a single source. The act also requires a nonprofit organization that regularly organizes and hosts travel for elected officials, as specified, and that pays for these types of travel for an elected state officer or local elected officeholder to disclose the names of donors who, in the preceding year, both donated to the nonprofit organization and accompanied an elected officer or officeholder for any portion of the travel, as specified.
This bill would prohibit a nonprofit organization, as defined, from providing to a Member of the Legislature, and a Member of the Legislature from accepting, any payments, advances, or reimbursements for travel, as defined.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
The Political Reform Act of 1974, an initiative measure, provides that the Legislature may amend the act to further the act’s purposes upon a 2⁄3 vote of each house and compliance with specified procedural requirements.
This bill would declare that it furthers the purposes of the act.
Vote: 2⁄3. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.
The people of the State of California do enact as follows:
Section 89506 of the Government Code is
2amended to read:
(a) Payments, advances, or reimbursements for travel,
4including actual transportation and related lodging and subsistence
5that is reasonably related to a legislative or governmental purpose,
6or to an issue of state, national, or international public policy, are
7not prohibited or limited by this chapter if either of the following
8applies:
9(1) The travel is in connection with a speech given by the elected
10state officer, local elected officeholder, candidate for elective state
11office or local elective office, an individual specified in Section
1287200, member of a state board or commission, or designated
13employee of a state or local government agency, the lodging and
14subsistence expenses are limited to the day immediately preceding,
15the day of, and the day immediately
following the speech, and the
16travel is within the United States.
17(2) The travel is provided by a government, a governmental
18agency, a foreign government, a governmental authority, a bona
19fide public or private educational institution, as defined in Section
20203 of the Revenue and Taxation Code, a nonprofit organization
21that is exempt from taxation under Section 501(c)(3) of the Internal
22Revenue Code, or by a person domiciled outside the United States
23who substantially satisfies the requirements for tax-exempt status
24under Section 501(c)(3) of the Internal Revenue Code.
P3 1(b) Gifts of travel not described in subdivision (a) are subject
2to the limits in Section 89503.
3(c) Subdivision (a) applies only to travel that is reported on the
4recipient’s statement of economic interests.
5(d) For purposes of this section, a gift of travel does not include
6any of the following:
7(1) Travel that is paid for from campaign funds, as permitted
8by Article 4 (commencing with Section 89510), or that is a
9contribution.
10(2) Travel that is provided by the agency of a local elected
11officeholder, an elected state officer, member of a state board or
12commission, an individual specified in Section 87200, or a
13designated employee.
14(3) Travel that is reasonably necessary in connection with a
15bona fide business, trade, or profession and that satisfies the criteria
16for federal income tax deduction for business expenses in Sections
17162 and 274 of the Internal Revenue Code, unless the sole or
18predominant activity of the business, trade, or profession is making
19
speeches.
20(4) Travel that is excluded from the definition of a gift by any
21other provision of this title.
22(e) This section does not apply to payments, advances, or
23reimbursements for travel and related lodging and subsistence
24permitted or limited by Section 170.9 of the Code of Civil
25Procedure.
26(f) (1) A nonprofit organization that regularly organizes and
27hosts travel for elected officials and that makes payments,
28advances, or reimbursements that total more than ten thousand
29dollars ($10,000) in a calendar year, or that total more than five
30thousand dollars ($5,000) in a calendar year for a single person,
31for travel by an elected state officer or local elected officeholder
32as described in subdivision (a) shall disclose to the Commission
33the names of donors who did both of the following in the
preceding
34year:
35(A) Donated one thousand dollars ($1,000) or more to the
36nonprofit organization.
37(B) Accompanied an elected state officer or local elected
38officeholder, either personally or through an agent, employee, or
39representative, for any portion of travel described in subdivision
40(a).
P4 1(2) For purposes of this subdivision, an organization “regularly
2organizes and hosts travel for elected officials” if the sum of the
3organization’s expenses that relate to any of the following types
4of activities with regard to elected officials was greater than
5one-third of its total expenses reflected on the organization’s
6Internal Revenue Service Form 990, or the equivalent, filed most
7recently within the last 12 months:
8(A) Travel.
9(B) Study tours.
10(C) Conferences, conventions, and meetings.
11(3) This subdivision does not preclude a finding that a nonprofit
12organization is acting as an intermediary or agent of the donor. If
13the nonprofit organization is acting as an intermediary or agent of
14the donor, all of the following apply:
15(A) The donor to the nonprofit organization is the source of the
16gift.
17(B) The donor shall be identified as a financial interest under
18Section 87103.
19(C) The gift shall be reported as required by Section 87207.
20(D) The gift shall be subject to the limitations on gifts
specified
21in Section 89503.
22(4) For purposes of this subdivision, a nonprofit organization
23includes an organization that is exempt from taxation under Section
24501(c)(3) or Section 501(c)(4) of the Internal Revenue Code.
25(g) Notwithstanding any other provision of in this section, a
26nonprofit organization that is exempt from taxation under Section
27501(c)(3) of the Internal Revenue Code shall not provide to a
28Member of the Legislature, and a Member of the Legislature shall
29not accept, any payments, advances, or reimbursements for travel,
30including actual transportation and related lodging and
31subsistence.
No reimbursement is required by this act pursuant to
33Section 6 of Article XIII B of the California Constitution because
34the only costs that may be incurred by a local agency or school
35district will be incurred because this act creates a new crime or
36infraction, eliminates a crime or infraction, or changes the penalty
37for a crime or infraction, within the meaning of Section 17556 of
38the Government Code, or changes the definition of a crime within
39the meaning of Section 6 of Article XIII B of the California
40Constitution.
The Legislature finds and declares that this bill furthers
2the purposes of the Political Reform Act of 1974 within the
3meaning of subdivision (a) of Section 81012 of the Government
4Code.
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