Amended in Assembly July 1, 2014

Amended in Senate April 10, 2014

Senate Bill No. 1443

Introduced by Senators De León, Corbett, Hill, Lara, Monning, Roth, Steinberg, and Torres

February 21, 2014

An act to amend Sections 86203 begin insert , 87103, end insert and 89503 of the Government Code, relating to the Political Reform Act of 1974.

LEGISLATIVE COUNSEL’S DIGEST

SB 1443, as amended, De León. Political Reform Act of 1974: gift limitations.

The Political Reform Act of 1974 provides for the comprehensive regulation of the lobbying industry and imposes various restrictions on public officials for the purpose of avoiding conflicts of interests. The act prohibits a lobbyist or lobbying firm from making gifts to any person aggregating more than $10 in a calendar month and prohibits an elected state officer, elected officer of a local government agency, or other designated individual from accepting gifts from any single source in any calendar year with a total value of more than $250. Existing law requires the Fair Political Practices Commission to adjust the gift limitation amount on January 1 of each odd-numbered year to reflect changes in the Consumer Price Index. begin delete The act also imposes administrative, civil, and criminal fines and penalties for violations of its provisions. end delete

This bill would prohibit a lobbyist or lobbying firm from making a gift of any amount. The bill would prohibit an elected state officer, elected officer of a local government agency, or other designated individual from accepting gifts from a single source in a calendar year with a total value of more than $200 and would authorize the Fair Political Practices Commission to increase the gift limitation amount each odd-numbered year based upon changes in the Consumer Price Index. The bill would further prohibit a candidate for elective state office, elected state officer, or legislative official from receiving a gift of tickets to specified venues and events or a gift comprised of specified recreational activities. begin delete By creating additional crimes, the bill would impose a state-mandated local program. end delete

begin insert

The act prohibits a public official at any level of state or local government from making, participating in making, or in any way attempting to use the official’s position to influence a governmental decision in which the official knows or has reason to know that he or she has a financial interest. The act provides that the public official has a financial interest in a decision if it is reasonably foreseeable that the decision will have a material financial effect on the official, the official’s immediate family, or other prescribed persons, including a donor of a gift or gifts aggregating $250 or more in value within the 12 months preceding the decision. The act requires the Commission to adjust the gift value amount to equal the above-described limitation amount on the value of gifts from a single source in a calendar year.

end insert begin insert

This bill would reduce to $200 the aggregate value of gifts that create a financial interest for a public official in the gift’s donor. The bill would also require the Commission to adjust this amount to equal the amount of any adjustment made by the Commission to the above-described gift limitation on the value of gifts from single source in a calendar year.

end insert begin insert

Violation of the act is punishable as a misdemeanor. By creating additional crimes, the bill would impose a state-mandated local program.

end insert

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 1.  

Section 86203 of the Government Code is
amended to read:

86203.  

A lobbyist or lobbying firm shall not make gifts to any
person, act as an agent or intermediary in the making of a gift, or
arrange for the making of a gift by another person.

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 87103 of the end insert begin insert Government Code end insert begin insert is amended to
read: end insert

87103.  

A public official has a financial interest in a decision
within the meaning of Section 87100 if it is reasonably foreseeable
that the decision will have a material financial effect,
distinguishable from its effect on the public generally, on the
official, a member of his or her immediate family, or on any of
the following:

(a) Any business entity in which the public official has a direct
or indirect investment worth two thousand dollars ($2,000) or
more.

(b) Any real property in which the public official has a direct
or indirect interest worth two thousand dollars ($2,000) or more.

(c) Any source of income, except gifts or loans by a commercial
lending institution made in the regular course of business on terms
available to the public without regard to official status, aggregating
five hundred dollars ($500) or more in value provided or promised
to, received by, the public official within 12 months prior to the
time when the decision is made.

(d) Any business entity in which the public official is a director,
officer, partner, trustee, employee, or holds any position of
management.

(e) Any donor of, or any intermediary or agent for a donor of,
a gift or gifts aggregating two hundred begin delete fifty end delete dollars begin delete ($250) end delete begin insert ($200) end insert
or more in value provided to, received by, or promised to the public
official within 12 months prior to the time when the decision is
made. begin delete The amount of the value of gifts specified by this subdivision
shall be adjusted biennially by the commission to equal the same
amount determined by the commission pursuant to subdivision (f)
of Section 89503. end delete begin insert If the Commission adjusts the gift limitation
amount pursuant to subdivision (f) of Section 89503, the
Commission shall adjust the value of gifts specified in this
subdivision to equal the same amount. end insert

For purposes of this section, indirect investment or interest means
any investment or interest owned by the spouse or dependent child
of a public official, by an agent on behalf of a public official, or
by a business entity or trust in which the official, the official’s
agents, spouse, and dependent children own directly, indirectly,
or beneficially a 10-percent interest or greater.

begin delete SEC. 2. end delete
begin insert SEC. 3. end insert   

Section 89503 of the Government Code is amended
to read:

89503.  

(a) An elected state officer, elected officer of a local
government agency, or other individual specified in Section 87200
shall not accept gifts from a single source in a calendar year with
a total value of more than two hundred dollars ($200).

(b) (1) A candidate for elective state office, for judicial office,
or for elective office in a local government agency shall not accept
gifts from a single source in a calendar year with a total value of
more than two hundred dollars ($200). A person shall be deemed
a candidate for purposes of this subdivision when the person has
filed a statement of organization as a committee for election to a
state or local office, a declaration of intent, or a declaration of
candidacy, whichever occurs first. A person shall not be deemed
a candidate for purposes of this subdivision after he or she is sworn
into the elective office, or, if the person lost the election, after the
person has terminated his or her campaign statement filing
obligations for that office pursuant to Section 84214 or after
certification of the election results, whichever is earlier.

(2) Paragraph (1) does not apply to a person who is a candidate,
as described in paragraph (1), for judicial office on or before
December 31, 1996.

(c) A member of a state board or commission or designated
employee of a state or local government agency shall not accept
gifts from a single source in a calendar year with a total value of
more than two hundred dollars ($200) if the member or employee
would be required to report the receipt of income or gifts from that
source on his or her statement of economic interests.

(d) This section does not apply to a person in his or her capacity
as judge. This section does not apply to a person in his or her
capacity as a part-time member of the governing board of a public
institution of higher education, unless that position is an elective
office.

(e) This section does not prohibit or limit any of the following:

(1) Payments, advances, or reimbursements for travel and related
lodging and subsistence permitted by Section 89506.

(2) Wedding gifts and gifts exchanged between individuals on
birthdays, holidays, and other similar occasions, provided that the
gifts exchanged are not substantially disproportionate in value.

(f) On January 1 of each odd-numbered year, beginning on
January 1, 2015, the Commission may, at its discretion, increase
the gift limitation amount specified in subdivisions (a), (b), and
(c). The Commission shall not increase the gift limitation amount
more than once in an odd-numbered year or by an amount that
exceeds changes reflected in the Consumer Price Index.

(g) (1) In addition to the gift limitation amount set forth in this
section, a candidate for elective state office, an elected state officer,
or a legislative official shall not accept a gift of tickets or the
equivalent of tickets to any of the following events or venues:

(A) A professional concert or other professional entertainment
event.

(B) A professional sporting event.

(C) An amateur sporting event for which the value of the ticket
received exceeds fifty dollars ($50).

(D) A racetrack event.

(E) A theme park, amusement park, or other similar venue.

(F) An amateur theater, concert, or other entertainment event
for which the value of the ticket received exceeds fifty dollars
($50).

(2) For purposes of this subdivision, “professional” means an
event with performers who are compensated for the event or who
engage in the performance activity as their vocation.

(h) In addition to the gift limitation amount set forth in this
section, a candidate for elective state office, an elected state officer,
or a legislative official shall not accept a gift of any of the
following:

(1) Golfing green fees, complimentary golf course access, or
the equivalent.

(2) Skiing, hunting, or fishing trips or other recreational outings.

(3) Spa treatments, spa access fees, or other equivalent
complimentary beauty or cosmetic services.

(4) Cash, gift cards, or cash equivalents.

(i) The limitations in this section are in addition to the limitations
on gifts in Section 86203.

begin delete SEC. 3. end delete
begin insert SEC. 4. end insert   

No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIII B of the California
Constitution.

begin delete SEC. 4. end delete
begin insert SEC. 5. end insert   

The Legislature finds and declares that this bill furthers
the purposes of the Political Reform Act of 1974 within the
meaning of subdivision (a) of Section 81012 of the Government
Code.