BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
SB 21 (Hill) - Political Reform Act of 1974: gifts of travel
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|Version: December 1, 2014 |Policy Vote: E. & C.A. 3 - 1 |
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|Urgency: No |Mandate: Yes |
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|Hearing Date: May 28, 2015 |Consultant: Maureen Ortiz |
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SUSPENSE FILE.
Bill
Summary: SB 21 requires nonprofit organizations that provide
certain gifts of travel to elected state and local officials to
disclose the names of donors responsible for funding the
payments, as specified. Additionally, the bill requires elected
officials that report gifts of travel payments on the Statement
of Economic Interest to also include the travel destination.
Fiscal
Impact:
Annual costs of $178,778 to the Fair Political Practices
Commission (General Fund)
The above estimate includes the need for 1 Political Reform
Consultant and of an Attorney III position to create the new
form and update related materials; promulgate regulations;
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handle advice requests; and provide public outreach and
education.
Background: Existing law prohibits specified elected officeholders and
other public officials from receiving gifts, as defined, in
excess of $440 in value from a single source in a calendar year.
However, payments for the actual costs of travel that is
reasonably related to a legislative or governmental purpose are
exempt from the annual gift limit. Specifically, travel
payments are exempt from the gift limit if either of the
following applies:
A. The travel is in connection with a speech given by the
officeholder or official and the lodging and subsistence
expenses are limited to the day immediately preceding, the
day of, and the day immediately following the speech, and
the travel is within the United States.
B. The travel is provided by a government, a governmental
agency, a foreign government, a governmental authority, a
bona fide public or private educational institution, a
nonprofit organization that is exempt from taxation under
Section 501(c)(3) of the Internal Revenue Code, or by a
person domiciled outside the United States who
substantially satisfies the requirements for tax-exempt
status under Section 501(c)(3) of the Internal Revenue
Code.
While these payments are not subject to the $440 annual gift
limit, they are currently reportable on an official's statement
of economic interest.
Proposed Law:
Specifically, SB 21 does the following:
1.Requires a nonprofit organization that makes payments,
advances, or reimbursements totaling more than $10,000 in a
calendar year, or that total more than $5,000 in a calendar
year for a single person, for travel by an elected state
officer or local elected officeholder to disclose the names of
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the donors responsible for funding those payments, advances,
or reimbursements.
2.Limits disclosure of donor names to those who donated $1,000
or more to the nonprofit organization in a calendar year and
who knew or had reason to know that the donation would be used
for travel by an elected state officer or local elected
officeholder.
3.Provides that a donor knows or has reason to know that his or
her donation will be used for such travel under any of the
following conditions:
A. The donor directed the nonprofit organization to use the
donation to make a payment, advance, or reimbursement for
the travel.
B. The donor made the donation in response to a message or
solicitation for donations for the stated purpose of making
a payment, advance, or reimbursement for such travel.
C. The donor, or an agent, employee, or representative of
the donor, accompanied an elected state officer or local
elected officeholder for any portion of the travel.
1.Specifies that a nonprofit organization that makes payments,
advances, or reimbursements for such travel is the source of
the gift for reporting and other applicable purposes unless
the nonprofit organization is acting as an intermediary or
agent of the donor. If the nonprofit organization is acting
as an intermediary or agent of the donor, the donor is the
source of the gift for reporting and other applicable purposes
including the $440 per year limit.
2.Requires that gifts that are travel payments, advances, or
reimbursements disclosed on an official's SEI must also
include the travel destination.
Related
Legislation: This bill is identical to a portion of SB 831
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(Hill) which was vetoed by the Governor last year. The
provisions of SB 831 relating to campaign contribution
prohibitions, and which was a concern addressed in the
Governor's veto message, is not contained in SB 21.
Staff
Comments: SB 21 is intended to increase transparency of
donations made to public officials in connection with travel
expenses.
This bill furthers the purpose of the Political Reform Act of
1974 and will require a 2/3 vote on the Senate Floor.
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