BILL ANALYSIS                                                                                                                                                                                                    �






                         SENATE COMMITTEE ON ELECTIONS 
                         AND CONSTITUTIONAL AMENDMENTS
                           Senator Lou Correa, Chair


          BILL NO:   SB 18                              HEARING DATE: 
          5/3/11
          AUTHOR:    BLAKESLEE                          ANALYSIS BY:  
             Darren Chesin
          AMENDED:   3/23/11
          FISCAL:    YES
          
                                     SUBJECT
           
          Political Reform Act: gifts
           
                                  DESCRIPTION  
          
           Existing law  prohibits a lobbyist or lobbying firm from 
          making gifts aggregating more than $10 in a calendar month 
          to elected state officers, candidates for state office, 
          specified legislative officials, and specified officials of 
          other agencies.

           Existing law  also prohibits these same elected officers, 
          candidates, and officials from accepting gifts from any 
          single source in a calendar year with a total value of more 
          than $420, with certain limited exceptions.  The Fair 
          Political Practices Commission (FPPC) is required to adjust 
          this gift limit on January 1 of each odd-numbered year to 
          reflect changes in the Consumer Price Index.

           Existing law  , for the purposes of the Political Reform Act 
          (PRA), defines "immediate family" as the spouse and 
          dependent children.

           This bill  would further prohibit a lobbyist, lobbying firm, 
          or lobbyist employer to give to a person holding elective 
          state office or to a member of that officeholder's 
          immediate family, any of the following gifts:  

             Theme park tickets.  
             Sporting event tickets.  
             Theater and concert tickets.  
             Racetrack tickets.  
             Spa treatments and other services of a personal nature. 










             Golf, skiing, or fishing trips, and other recreational 
             outings or vacations.  
             Gift cards. 

                                    BACKGROUND  

           What is a Gift  ?  Generally, a "gift" is defined as any 
          payment or other benefit provided to someone that confers a 
          personal benefit for which the recipient does not provide 
          goods or services of equal or greater value.  A gift 
          includes a rebate or discount in the price of anything of 
          value unless the rebate or discount is made in the regular 
          course of business to members of the public.   

          A gift made to both an official and his or her family 
          member (spouse, dependent minor children, and children up 
          to age 23 who are students and not living on their own or 
          providing a majority of their own support) is treated as a 
          gift to the official for the full value of the gift.  In 
          addition, unless the official can establish that there is 
          an established working or social relationship between the 
          donor and the family member that is independent of the 
          relationship between the donor and the official, a gift 
          given solely to an official's family member will be treated 
          as a gift to the official if the official receives a 
          personal benefit from the gift. 

                                     COMMENTS  
          
            1. According to the author  , there are slightly more than 
             1,000 registered lobbyists in the state of California, 
             just under 400 lobbying firms and more than 3,000 
             lobbyist employers all seeking to gain access to elected 
             officials.  Despite rigid laws defining what gift can or 
             cannot be given to an elected official as well as 
             well-defined gift limits, lobbyist, lobbyists firms, and 
             lobbyist employers continue to lavish extraordinary 
             gifts of influence on elected officials with the intent 
             to finance access to legislators that is not available 
             to other members of the public.

           California's elected officials are the targets of 
             unnecessary entertainment gifts by individuals, 
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             businesses and organizations with interests before the 
             Legislature.  In 2008, members of the State Legislature 
             reported receiving $12,708.23 worth of theme park 
             tickets.  In 2009, $4,297.08 was spent on sporting event 
             tickets.  Rounds of golf, tickets to the race track and 
             concert passes are all handed to State Senators and 
             Assembly Members with the intent to gain access and 
             favor.   These egregious gifts do not help elected 
             officials legislate more effectively and ultimately 
             damage public opinion of Sacramento leadership.

           Legislators do not require gifts in order to perform their 
             jobs.  The public has provided legislators with per diem 
             payments to cover meals, office budgets that cover 
             legislative travel and annual salaries that provide 
             ample resources to cover any legitimate expenses.  
             Legislators should not receive special treatment from 
             those with business before the Legislature.

           SB 18 keeps elected officials accountable and interested 
             parties transparent as to the types of gifts that are 
             being given and received. SB 18 stops lobbyist, lobbyist 
             firms and lobbyist employers from taking advantage of 
             gift-giving loopholes used to unduly influence members 
             and bans elected officials from receiving entertainment 
             gifts unrelated to policy, by specifying exactly what 
             gifts are not appropriate to be exchanged.  

            2. A TV is OK but not a Ticket to a Game ?  Under this 
             bill, it would still be legal for a lobbyist employer to 
             give a legislator a gift valued at $420 or less as long 
             as it is not delineated as specifically prohibited.  
             Hence, it would be permissible under this bill for a 
             lobbyist employer to give a legislator a $420 
             television, $420 worth of food or wine, or even $420 in 
             cash, but a $7 ticket to a Sacramento Rivercats baseball 
             game would be illegal.  Is this equitable?  What is more 
             important, the type of gift or the monetary value of the 
             gift?

            3. Services of a Personal Nature  ?  This bill uses several 
             terms that are not currently defined for purposes of the 
             PRA such as "theme park," "spa treatments," "services of 
             a personal nature," and "gift cards."  In light of this, 
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             it would fall on the FPPC to define these terms through 
             the regulatory process.

            4. Related Legislation  .  AB 2368 (Blakeslee) of 2009, 
             which died in the Assembly Appropriations Committee, and 
             AB 1412 (Torrico) of 2009, which died on the Assembly 
             inactive file, both would have prohibited a lobbyist 
             employer from making gifts of $10 or more in a calendar 
             month to a member of the Legislature.  

           AB 2795 (Blakeslee) of 2008, which  died in the Assembly 
             Appropriations Committee, would have extended gift 
             prohibitions to lobbyist employers, except that a 
             lobbyist employer would be permitted to provide food or 
             refreshments of a nominal value other than as part of a 
             meal. It would also have authorized a lobbyist employer 
             to give, and a state candidate, elected state officer, 
             legislative official, or agency official to receive, a 
             complimentary ticket to an event sponsored by the 
             lobbyist employer if the event met specified conditions. 


                                    POSITIONS  

          Sponsor: Author

           Support: California Common Cause
                    CALPIRG
                    Santa Barbara County Republican Party

           Oppose:  None received











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