BILL ANALYSIS                                                                                                                                                                                                    �






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


          BILL NO:   SB 1426                            HEARING DATE: 
          4/19/12
          AUTHOR:    BLAKESLEE                          ANALYSIS BY:  
             Darren Chesin
          AMENDED:   4/9/12
          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 from giving to a person holding 
          elective state office or to a member of that officeholder's 
          immediate family, any of the following gifts: 

             Theme park or amusement park tickets.  
             Professional sporting event tickets.
             A collegiate or other amateur sporting event ticket 
             with a face value exceeding $25.
             Theater, concert, or other entertainment tickets with a 









             face value exceeding $25.
             Racetrack tickets.  
             Spa treatments or other beauty or cosmetic services. 
             Golf, skiing, hunting or fishing trips, and other 
             recreational outings or vacations.  
             Gift cards. 

           This bill  would also prohibit a person holding elective 
          state office or a member of that officeholder's immediate 
          family from accepting any of the aforementioned gifts from 
          lobbyists, lobbying firms, or lobbyist employers.  

           This bill  would provide that these prohibitions would not 
          apply to a fundraising event for a bona fide charitable 
          organization. 

                                    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.   

                                     COMMENTS  
          
            1. According to the author  , despite rigid laws defining 
             what gifts can and cannot be given to an elected 
             official as well as well-defined gift limits, lobbyists, 
             lobbyist 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.  SB 1426 expressly prohibits the giving and 
             receiving of unnecessary entertainment gifts (as 
             defined) in order to reinstate the public's trust in 
             their elected representatives.

           Legislators do not require gifts in order to do 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 
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             ample resources to cover any legitimate expenses.  
             Legislators should not receive special treatment from 
             those with business before the Legislature.

            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. FPPC to Define Terms  .  This bill uses several terms 
             that are not currently defined for purposes of the PRA 
             such as "theme park," "spa treatments," and "gift 
             cards."  In light of this, it would fall on the FPPC to 
             define these terms through the regulatory process. 
           
            4. Related Legislation  .  SB 18 (Blakeslee) of 2011 which 
             was approved by this committee but died on the Senate 
             Appropriations Committee suspense file was almost 
             identical to this bill.  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. 


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                                    POSITIONS  

          Sponsor: Author

           Support: California Common Cause

           Oppose:  None received



































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