BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 1443
                                                                  Page  1

          Date of Hearing:   August 6, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                    SB 1443 (De Leon) - As Amended:  July 1, 2014 

          Policy Committee:                             ElectionsVote:6-0

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill reduces the maximum value of gifts that can be given  
          to a public official and prohibits public officials from  
          receiving certain kinds of gifts. Specifically, this bill:

          1)Removes the limit of $10 in any calendar month as the  
            aggregate value of a gift that a lobbyist or lobbying firm may  
            give to a candidate for elective state office, an elected  
            state officer, or a legislative official, or to an agency  
            official of any agency required to be listed on the  
            registration statement of the lobbying firm or the lobbyist  
            employer of the lobbyist, and instead prohibits gifts of any  
            amount. Prohibits an official from knowingly receiving a gift  
            that is unlawful under this provision.

          2)Lowers, from $440 to $200, the limit on the aggregate value of  
            gifts that specified public officials can receive from a  
            single source in a calendar year. Ends a requirement for the  
            Fair Political Practices Commission (FPPC) to adjust this  
            limit in January of each odd-numbered year to reflect any  
            changes in the Consumer Price Index (CPI), and instead permits  
            the FPPC, at its discretion, to increase the limit in January  
            of each odd-numbered year by an amount that does not exceed  
            any changes reflected in the CPI. Makes a corresponding change  
            to the threshold whereby gifts received by public officials  
            can constitute a conflict of interest.

          3)Prohibits a candidate for elective state office, an elected  
            state officer, or a legislative official from accepting the  
            following gifts:

             a)   A gift of tickets or the equivalent of tickets to any of  








                                                                  SB 1443
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               the following events or venues:

               i)     A professional concert or other professional  
                 entertainment event, regardless of the value of the  
                 ticket;
               ii)    A professional sporting event, regardless of the  
                 value of the ticket;
               iii)   An amateur sporting event for which the value of the  
                 ticket received exceeds $50;
               iv)    A racetrack event, regardless of the value of the  
                 ticket;
               v)     A theme park, amusement park, or other similar  
                 venue,  regardless of the value of the ticket; or,
               vi)    An amateur theatre, concert, or other entertainment  
                 event for which the value of the ticket received exceeds  
                 $50;

             b)   Golfing green fees, complimentary golf course access, or  
               the equivalent, regardless of the value;

             c)   Skiing, hunting, or fishing trips or other recreational  
               outings, regardless of the value;

             d)   Spa treatments, spa access fees, or other equivalent  
               complimentary beauty or cosmetic services, regardless of  
               the value; or

             e)   Cash, gift cards, or cash equivalents, regardless of the  
               value.

           FISCAL EFFECT 

          Minor absorbable costs to the FPPC for enforcement, potentially  
          offset to some extent by penalty revenue. 

           COMMENTS  

           1)Purpose  . According to the author, "SB 1443 is a product  
            of the Senate Ethics Working Group, and a part of a  
            legislative package supported by the Senate Democratic  
            Caucus (the others are SB 1441 and SB 1442) aimed at  
            bolstering public confidence in California's elected  
            officials and improving transparency in the gift  
            reporting process.  









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            "This measure seeks to severely reduce the gift limit and  
            completely ban gifts such as tickets to professional sporting  
            events and concerts, amusement parks, golfing green fees, spa  
            treatments, and recreational trips.  Increasing of the gift  
            limit over the years, which is currently set at $440,  
            is?approaching the conflict of interest threshold of $500. SB  
            1442 would reduce the gift limit to $200."

           2)Prior Legislation . SB 1426 (Blakeslee) of 2012, which would  
            have prohibited lobbyists, lobbyist firms, and lobbyist  
            employers from giving specific types of gifts (such as gift  
            cards, and amusement park and racetrack tickets) to elected  
            state officers and members of their immediate family, was held  
            on this committee's Suspense file. A similar bill, SB 18  
            (Blakeslee) of 2011, was held on Suspense in Senate  
            Appropriations.  

          AB 1412 (Torrico) of 2009, and AB 2368 (Blakeslee) of 2010,  
            would have prohibited a lobbyist employer from making gifts to  
            a Member of the Legislature aggregating more than $10 in a  
            calendar month.  AB 1412 died on the inactive file on the  
            Assembly Floor.  AB 2368 failed passage in this committee.

          AB 2795 (Blakeslee) of 2008, which would have prohibited a  
            lobbyist employer from making gifts to state candidates,  
            elected state officers, legislative officials, and certain  
            agency officials aggregating more than $10 in a calendar month  
            with certain exceptions for food or refreshments of a nominal  
            value offered other than as part of a meal and tickets to  
            certain events sponsored by the lobbyist employer, was held on  
            this committee's Suspense file.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081