BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                  SB 1426|
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                                 THIRD READING


          Bill No:  SB 1426
          Author:   Blakeslee (R), et al.
          Amended:  4/9/12
          Vote:     27

           
           SENATE ELECTIONS & CONST. AMEND. COMM.  :  4-0, 4/19/12
          AYES:  Correa, La Malfa, Gaines, Lieu
          NO VOTE RECORDED:  De Le�n
           
          SENATE APPROPRIATIONS COMMITTEE  :  6-0, 5/24/12
          AYES:  Kehoe, Walters, Alquist, Dutton, Lieu, Steinberg
          NO VOTE RECORDED:  Price


           SUBJECT  :    Political Reform Act:  lobbyist employers:  
          gifts

           SOURCE  :     Author


           DIGEST  :    This bill prohibits a lobbyist, lobbying firm, 
          or lobbyist employer from giving to an elected state 
          officer or a member of that officers immediate family, and 
          prohibits an elected state officer from accepting from a 
          lobbyist, lobbying firm, or lobbyist employer, certain 
          gifts, including tickets to specified venues and events, 
          spa treatments, recreational trips, and gift cards.  
          However, under this bill, these prohibitions will not apply 
          to a fundraising event for a bona fide charitable 
          organization.

           ANALYSIS  :    Existing law prohibits a lobbyist or lobbying 
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          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 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, 
          defines "immediate family" as the spouse and dependent 
          children.

          This bill further prohibits 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 also prohibits a person holding elective state 
          office or a member of that officeholder's immediate family 

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          from accepting any of the aforementioned gifts from 
          lobbyists, lobbying firms, or lobbyist employers.  

          This bill provides that these prohibitions will 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.   

           Related Legislation 
           
          SB 18 (Blakeslee, 2011) which was approved by Senate 
          Elections and Constitutional Amendments Committee, but died 
          on the Senate Appropriations Committee Suspense File was 
          almost identical to this bill.  

          AB 2368 (Blakeslee, 2009) which died in the Assembly 
          Appropriations Committee, and AB 1412 (Torrico, 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, 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.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  Yes


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          According to the Senate Appropriations Committee, there 
          would be total first year costs of $204,970 (General Fund) 
          as follows:

            Annual costs of $197,170 for 2.4PYs (General)
            Additional one-time costs of about $4,000 in operating 
             expenses (General)
            Ongoing costs of $3,800 for communications (General)

           SUPPORT  :   (Verified  5/24/12)

          California Common Cause
          California Public Interest Research Groups

           OPPOSITION  :    (Verified  5/24/12)

          Fair Political Practices Commission

           ARGUMENTS IN SUPPORT  :    According to the author's office, 
          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.  This bill 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 ample 
          resources to cover any legitimate expenses.  Legislators 
          should not receive special treatment from those with 
          business before the Legislature.

           ARGUMENTS IN OPPOSITION :    According to the Fair Political 
          Practices Commission, "The Commission has concerns about 
          any legislative measure includes an appropriation adequate 
          to carry out its provisions.  Commission staff has 
          determined that the implementation of SB 1426 would require 
          additional resources that cannot be absorbed within the 
          Commission's current budget."


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          DLW:kc  5/25/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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