SB 21: Political Reform Act of 1974: gifts of travel.
- Session Year: 2015-2016
- House: Senate
- Latest Version Date: 2015-10-10
The Political Reform Act of 1974 provides for the comprehensive regulation of campaign financing and related matters, including the reporting of gifts, as defined. The act prohibits specified officers from receiving gifts in excess of $440 in value from a single source in a calendar year. The act exempts gift payments for the actual costs of specified types of travel that are reasonably related to a legislative or governmental purpose, or to an issue of state, national, or international public policy, from the annual limit on the value of gifts from a single source.
This bill would require a nonprofit organization that regularly organizes and hosts travel for elected officials, as specified, and that pays for these types of travel for an elected state officer or local elected officeholder to disclose the names of donors who, in the preceding year, both donated to the nonprofit organization and accompanied an elected officer or officeholder for any portion of the travel, as specified. The bill would require a person who receives a gift of a travel payment from any source to report the travel destination on his or her statement of economic interests.
This bill would incorporate additional changes to Section 87207 of the Government Code proposed by both this bill and AB 10, which would become operative only if both bills are enacted and become effective on or before January 1, 2016, and this bill is chaptered last.
A violation of the acts provisions is punishable as a misdemeanor. By expanding the scope of an existing crime, this bill would impose a state-mandated local program.
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 acts 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.
The Political Reform Act of 1974 provides for the comprehensive regulation of campaign financing and related matters, including the reporting of gifts, as defined. The act prohibits specified officers from receiving gifts in excess of $440 in value from a single source in a calendar year. The act exempts gift payments for the actual costs of specified types of travel that are reasonably related to a legislative or governmental purpose, or to an issue of state, national, or international public policy, from the annual limit on the value of gifts from a single source.
This bill would require a nonprofit organization that regularly organizes and hosts travel for elected officials, as specified, and that pays for these types of travel for an elected state officer or local elected officeholder to disclose the names of donors who, in the preceding year, both donated to the nonprofit organization and accompanied an elected officer or officeholder for any portion of the travel, as specified. The bill would require a person who receives a gift of a travel payment from any source to report the travel destination on his or her statement of economic interests.
This bill would incorporate additional changes to Section 87207 of the Government Code proposed by both this bill and AB 10, which would become operative only if both bills are enacted and become effective on or before January 1, 2016, and this bill is chaptered last.
A violation of the acts provisions is punishable as a misdemeanor. By expanding the scope of an existing crime, this bill would impose a state-mandated local program.
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 acts 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.
The Political Reform Act of 1974 provides for the comprehensive regulation of campaign financing and related matters, including the reporting of gifts, as defined. The act prohibits specified officers from receiving gifts in excess of $440 in value from a single source in a calendar year. The act exempts gift payments for the actual costs of specified types of travel that are reasonably related to a legislative or governmental purpose, or to an issue of state, national, or international public policy, from the annual limit on the value of gifts from a single source.
This bill would require a nonprofit organization that regularly organizes and hosts travel for elected officials, as specified, and that pays for these types of travel for an elected state officer or local elected officeholder to disclose the names of donors who, in the preceding year, both donated to the nonprofit organization and accompanied an elected officer or officeholder for any portion of the travel, as specified. The bill would require a person who receives a gift of a travel payment from any source to report the travel destination on his or her statement of economic interests.
This bill would incorporate additional changes to Section 87207 of the Government Code proposed by both this bill and AB 10, which would become operative only if both bills are enacted and become effective on or before January 1, 2016, and this bill is chaptered last.
A violation of the Acts acts provisions is punishable as a misdemeanor. By expanding the scope of an existing crime, this bill would impose a state-mandated local program.
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 acts 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.
The Political Reform Act of 1974 provides for the comprehensive regulation of campaign financing and related matters, including the reporting of gifts, as defined. The act prohibits specified officers from receiving gifts in excess of $440 in value from a single source in a calendar year. The act exempts gift payments for the actual costs of specified types of travel that are reasonably related to a legislative or governmental purpose, or to an issue of state, national, or international public policy, from the annual limit on the value of gifts from a single source.
This bill would require a nonprofit organization that regularly organizes and hosts travel for elected officials, as specified, and that pays for these types of travel for an elected state officer or local elected officeholder to disclose the names of donors responsible for funding the payments, who, in the preceding year, both donated to the nonprofit and accompanied an elected officer or officeholder for any portion of the travel, as specified. The bill would require a person who receives a gift of a travel payment from any source to report the travel destination on his or her statement of economic interests.
A violation of the Acts provisions is punishable as a misdemeanor. By expanding the scope of an existing crime, this bill would impose a state-mandated local program.
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 acts 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.
The Political Reform Act of 1974 provides for the comprehensive regulation of campaign financing and related matters, including the reporting of gifts, as defined. The act prohibits specified officers from receiving gifts in excess of $440 in value from a single source in a calendar year. The act exempts gift payments for the actual costs of specified types of travel that are reasonably related to a legislative or governmental purpose, or to an issue of state, national, or international public policy, from the annual limit on the value of gifts from a single source.
This bill would require a nonprofit organization that pays for these types of travel for an elected state officer or local elected officeholder to disclose the names of donors responsible for funding the payments, as specified. The bill would require a person who receives a gift of a travel payment from any source to report the travel destination on his or her statement of economic interests.
A violation of the Acts provisions is punishable as a misdemeanor. By expanding the scope of an existing crime, this bill would impose a state-mandated local program.
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 acts 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.
(a)If income is required to be reported under this article, the statement shall contain, except as provided in subdivision (b):
(1)The name and address of each source of income aggregating five hundred dollars ($500) or more in value, or fifty dollars ($50) or more in value if the income was a gift, and a general description of the business activity, if any, of each source.
(2)A statement whether the aggregate value of income from each source, or in the case of a loan, the highest amount owed to each source, was at least five hundred dollars ($500) but did not exceed one thousand dollars ($1,000), whether it was in excess of one thousand dollars ($1,000) but was not greater than ten thousand dollars ($10,000), whether it was greater than ten thousand dollars ($10,000) but not greater than one hundred thousand dollars ($100,000), or whether it was greater than one hundred thousand dollars ($100,000).
(3)A description of the consideration, if any, for which the income was received.
(4)In the case of a gift, the amount and the date on which the gift was received, and the travel destination for purposes of a gift that is a travel payment, advance, or reimbursement.
(5)In the case of a loan, the annual interest rate, the security, if any, given for the loan, and the term of the loan.
(b)If the filers pro rata share of income to a business entity, including income to a sole proprietorship, is required to be reported under this article, the statement shall contain:
(1)The name, address, and a general description of the business activity of the business entity.
(2)The name of every person from whom the business entity received payments if the filers pro rata share of gross receipts from that person was equal to or greater than ten thousand dollars ($10,000) during a calendar year.
(c)If a payment, including an advance or reimbursement, for travel is required to be reported pursuant to this section, it may be reported on a separate travel reimbursement schedule which shall be included in the filers statement of economic interest. A filer who chooses not to use the travel schedule shall disclose payments for travel as a gift, unless it is clear from all surrounding circumstances that the services provided were equal to or greater in value than the payments for the travel, in which case the travel may be reported as income.
SEC. 1.5.Section 87207 of the Government Code is amended to read:87207.(a)Except as provided in subdivision (b), if income is required to be reported under this article, the statement shall contain all of the following:
(1)The name and address of each source of income aggregating one thousand dollars ($1,000) or more in value, or fifty dollars ($50) or more in value if the income was a gift, and a general description of the business activity, if any, of each source.
(2)A statement indicating which of the following represents the aggregate value of income from each source, or in the case of a loan, the highest amount owed to each source:
(A)At least one thousand dollars ($1,000) but not greater than ten thousand dollars ($10,000).
(B)Greater than ten thousand dollars ($10,000) but not greater than one hundred thousand dollars ($100,000).
(C)Greater than one hundred thousand dollars ($100,000) but not greater than two hundred fifty thousand dollars ($250,000).
(D)Greater than two hundred fifty thousand dollars ($250,000) but not greater than five hundred thousand dollars ($500,000).
(E)Greater than five hundred thousand dollars ($500,000).
(3)A description of the consideration, if any, for which the income was received.
(4)In the case of a gift, the amount and the date on which the gift was received, and the travel destination for purposes of a gift that is a travel payment, advance, or reimbursement.
(5)In the case of a loan, the annual interest rate, the security, if any, given for the loan, and the term of the loan.
(b)If the filers pro rata share of income to a business entity, including income to a sole proprietorship, is required to be reported under this article, the statement shall contain the following:
(1)(A)The name, address, and, except as provided in subparagraph (B), a thorough and detailed description of the business activity of the business entity based on criteria established by the commission.
(B)A filer is not required to provide a thorough and detailed description of the business activity of the business entity if the business entity is publicly traded.
(2)The name of every person from whom the business entity received payments if the filers pro rata share of gross receipts from that person was equal to or greater than ten thousand dollars ($10,000) during a calendar year.
(c)If a payment, including an advance or reimbursement, for travel is required to be reported pursuant to this section, it may be reported on a separate travel reimbursement schedule, which shall be included in the filers statement of economic interest. A filer who chooses not to use the travel schedule shall disclose payments for travel as a gift, unless it is clear from all surrounding circumstances that the services provided were equal to or greater in value than the payments for the travel, in which case the travel may be reported as income.
SEC. 2.Section 89506 of the Government Code is amended to read:89506.(a)Payments, advances, or reimbursements for travel, including actual transportation and related lodging and subsistence that is reasonably related to a legislative or governmental purpose, or to an issue of state, national, or international public policy, are not prohibited or limited by this chapter if either of the following applies:
(1)The travel is in connection with a speech given by the elected state officer, local elected officeholder, candidate for elective state office or local elective office, an individual specified in Section 87200, member of a state board or commission, or designated employee of a state or local government agency, the lodging and subsistence expenses are limited to the day immediately preceding, the day of, and the day immediately following the speech, and the travel is within the United States.
(2)The travel is provided by a government, a governmental agency, a foreign government, a governmental authority, a bona fide public or private educational institution, as defined in Section 203 of the Revenue and Taxation Code, a nonprofit organization that is exempt from taxation under Section 501(c)(3) of the Internal Revenue Code, or by a person domiciled outside the United States who substantially satisfies the requirements for tax-exempt status under Section 501(c)(3) of the Internal Revenue Code.
(b)Gifts of travel not described in subdivision (a) are subject to the limits in Section 89503.
(c)Subdivision (a) applies only to travel that is reported on the recipients statement of economic interests.
(d)For purposes of this section, a gift of travel does not include any of the following:
(1)Travel that is paid for from campaign funds, as permitted by Article 4 (commencing with Section 89510), or that is a contribution.
(2)Travel that is provided by the agency of a local elected officeholder, an elected state officer, member of a state board or commission, an individual specified in Section 87200, or a designated employee.
(3)Travel that is reasonably necessary in connection with a bona fide business, trade, or profession and that satisfies the criteria for federal income tax deduction for business expenses in Sections 162 and 274 of the Internal Revenue Code, unless the sole or predominant activity of the business, trade, or profession is making speeches.
(4)Travel that is excluded from the definition of a gift by any other provision of this title.
(e)This section does not apply to payments, advances, or reimbursements for travel and related lodging and subsistence permitted or limited by Section 170.9 of the Code of Civil Procedure.
(f)(1)A nonprofit organization that regularly organizes and hosts travel for elected officials and that makes payments, advances, or reimbursements that total more than ten thousand dollars ($10,000) in a calendar year, or that total more than five thousand dollars ($5,000) in a calendar year for a single person, for travel by an elected state officer or local elected officeholder as described in subdivision (a) shall disclose to the Commission the names of donors who did both of the following in the preceding year:
(A)Donated one thousand dollars ($1,000) or more to the nonprofit organization.
(B)Accompanied an elected state officer or local elected officeholder, either personally or through an agent, employee, or representative, for any portion of travel described in subdivision (a).
(2)For purposes of this subdivision, an organization regularly organizes and hosts travel for elected officials if the sum of the organizations expenses that relate to any of the following types of activities with regard to elected officials was greater than one-third of its total expenses reflected on the organizations Internal Revenue Service Form 990, or the equivalent, filed most recently within the last 12 months:
(A)Travel.
(B)Study tours.
(C)Conferences, conventions, and meetings.
(3)This subdivision does not preclude a finding that a nonprofit organization is acting as an intermediary or agent of the donor. If the nonprofit organization is acting as an intermediary or agent of the donor, all of the following apply:
(A)The donor to the nonprofit organization is the source of the gift.
(B)The donor shall be identified as a financial interest under Section 87103.
(C)The gift shall be reported as required by Section 87207.
(D)The gift shall be subject to the limitations on gifts specified in Section 89503.
(4)For purposes of this subdivision, a nonprofit organization includes an organization that is exempt from taxation under Section 501(c)(3) or Section 501(c)(4) of the Internal Revenue Code.
SEC. 3.Section 1.5 of this bill incorporates amendments to Section 87207 of the Government Code proposed by both this bill and Assembly Bill 10. It shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2016, (2) each bill amends Section 87207 of the Government Code, and (3) this bill is enacted after Assembly Bill 10, in which case Section 1 of this bill shall not become operative.
SEC. 4.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.
SEC. 5.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.
(a)If income is required to be reported under this article, the statement shall contain, except as provided in subdivision (b):
(1)The name and address of each source of income aggregating five hundred dollars ($500) or more in value, or fifty dollars ($50) or more in value if the income was a gift, and a general description of the business activity, if any, of each source.
(2)A statement whether the aggregate value of income from each source, or in the case of a loan, the highest amount owed to each source, was at least five hundred dollars ($500) but did not exceed one thousand dollars ($1,000), whether it was in excess of one thousand dollars ($1,000) but was not greater than ten thousand dollars ($10,000), whether it was greater than ten thousand dollars ($10,000) but not greater than one hundred thousand dollars ($100,000), or whether it was greater than one hundred thousand dollars ($100,000).
(3)A description of the consideration, if any, for which the income was received.
(4)In the case of a gift, the amount and the date on which the gift was received, and the travel destination for purposes of a gift that is a travel payment, advance, or reimbursement.
(5)In the case of a loan, the annual interest rate, the security, if any, given for the loan, and the term of the loan.
(b)If the filers pro rata share of income to a business entity, including income to a sole proprietorship, is required to be reported under this article, the statement shall contain:
(1)The name, address, and a general description of the business activity of the business entity.
(2)The name of every person from whom the business entity received payments if the filers pro rata share of gross receipts from that person was equal to or greater than ten thousand dollars ($10,000) during a calendar year.
(c)If a payment, including an advance or reimbursement, for travel is required to be reported pursuant to this section, it may be reported on a separate travel reimbursement schedule which shall be included in the filers statement of economic interest. A filer who chooses not to use the travel schedule shall disclose payments for travel as a gift, unless it is clear from all surrounding circumstances that the services provided were equal to or greater in value than the payments for the travel, in which case the travel may be reported as income.
SEC. 1.5.Section 87207 of the Government Code is amended to read:87207.(a)Except as provided in subdivision (b), if income is required to be reported under this article, the statement shall contain all of the following:
(1)The name and address of each source of income aggregating one thousand dollars ($1,000) or more in value, or fifty dollars ($50) or more in value if the income was a gift, and a general description of the business activity, if any, of each source.
(2)A statement indicating which of the following represents the aggregate value of income from each source, or in the case of a loan, the highest amount owed to each source:
(A)At least one thousand dollars ($1,000) but not greater than ten thousand dollars ($10,000).
(B)Greater than ten thousand dollars ($10,000) but not greater than one hundred thousand dollars ($100,000).
(C)Greater than one hundred thousand dollars ($100,000) but not greater than two hundred fifty thousand dollars ($250,000).
(D)Greater than two hundred fifty thousand dollars ($250,000) but not greater than five hundred thousand dollars ($500,000).
(E)Greater than five hundred thousand dollars ($500,000).
(3)A description of the consideration, if any, for which the income was received.
(4)In the case of a gift, the amount and the date on which the gift was received, and the travel destination for purposes of a gift that is a travel payment, advance, or reimbursement.
(5)In the case of a loan, the annual interest rate, the security, if any, given for the loan, and the term of the loan.
(b)If the filers pro rata share of income to a business entity, including income to a sole proprietorship, is required to be reported under this article, the statement shall contain the following:
(1)(A)The name, address, and, except as provided in subparagraph (B), a thorough and detailed description of the business activity of the business entity based on criteria established by the commission.
(B)A filer is not required to provide a thorough and detailed description of the business activity of the business entity if the business entity is publicly traded.
(2)The name of every person from whom the business entity received payments if the filers pro rata share of gross receipts from that person was equal to or greater than ten thousand dollars ($10,000) during a calendar year.
(c)If a payment, including an advance or reimbursement, for travel is required to be reported pursuant to this section, it may be reported on a separate travel reimbursement schedule, which shall be included in the filers statement of economic interest. A filer who chooses not to use the travel schedule shall disclose payments for travel as a gift, unless it is clear from all surrounding circumstances that the services provided were equal to or greater in value than the payments for the travel, in which case the travel may be reported as income.
SEC. 2.Section 89506 of the Government Code is amended to read:89506.(a)Payments, advances, or reimbursements for travel, including actual transportation and related lodging and subsistence that is reasonably related to a legislative or governmental purpose, or to an issue of state, national, or international public policy, are not prohibited or limited by this chapter if either of the following applies:
(1)The travel is in connection with a speech given by the elected state officer, local elected officeholder, candidate for elective state office or local elective office, an individual specified in Section 87200, member of a state board or commission, or designated employee of a state or local government agency, the lodging and subsistence expenses are limited to the day immediately preceding, the day of, and the day immediately following the speech, and the travel is within the United States.
(2)The travel is provided by a government, a governmental agency, a foreign government, a governmental authority, a bona fide public or private educational institution, as defined in Section 203 of the Revenue and Taxation Code, a nonprofit organization that is exempt from taxation under Section 501(c)(3) of the Internal Revenue Code, or by a person domiciled outside the United States who substantially satisfies the requirements for tax-exempt status under Section 501(c)(3) of the Internal Revenue Code.
(b)Gifts of travel not described in subdivision (a) are subject to the limits in Section 89503.
(c)Subdivision (a) applies only to travel that is reported on the recipients statement of economic interests.
(d)For purposes of this section, a gift of travel does not include any of the following:
(1)Travel that is paid for from campaign funds, as permitted by Article 4 (commencing with Section 89510), or that is a contribution.
(2)Travel that is provided by the agency of a local elected officeholder, an elected state officer, member of a state board or commission, an individual specified in Section 87200, or a designated employee.
(3)Travel that is reasonably necessary in connection with a bona fide business, trade, or profession and that satisfies the criteria for federal income tax deduction for business expenses in Sections 162 and 274 of the Internal Revenue Code, unless the sole or predominant activity of the business, trade, or profession is making speeches.
(4)Travel that is excluded from the definition of a gift by any other provision of this title.
(e)This section does not apply to payments, advances, or reimbursements for travel and related lodging and subsistence permitted or limited by Section 170.9 of the Code of Civil Procedure.
(f)(1)A nonprofit organization that regularly organizes and hosts travel for elected officials and that makes payments, advances, or reimbursements that total more than ten thousand dollars ($10,000) in a calendar year, or that total more than five thousand dollars ($5,000) in a calendar year for a single person, for travel by an elected state officer or local elected officeholder as described in subdivision (a) shall disclose to the Commission the names of donors who did both of the following in the preceding year:
(A)Donated one thousand dollars ($1,000) or more to the nonprofit organization.
(B)Accompanied an elected state officer or local elected officeholder, either personally or through an agent, employee, or representative, for any portion of travel described in subdivision (a).
(2)For purposes of this subdivision, an organization regularly organizes and hosts travel for elected officials if the sum of the organizations expenses that relate to any of the following types of activities with regard to elected officials was greater than one-third of its total expenses reflected on the organizations Internal Revenue Service Form 990, or the equivalent, filed most recently within the last 12 months:
(A)Travel.
(B)Study tours.
(C)Conferences, conventions, and meetings.
(3)This subdivision does not preclude a finding that a nonprofit organization is acting as an intermediary or agent of the donor. If the nonprofit organization is acting as an intermediary or agent of the donor, all of the following apply:
(A)The donor to the nonprofit organization is the source of the gift.
(B)The donor shall be identified as a financial interest under Section 87103.
(C)The gift shall be reported as required by Section 87207.
(D)The gift shall be subject to the limitations on gifts specified in Section 89503.
(4)For purposes of this subdivision, a nonprofit organization includes an organization that is exempt from taxation under Section 501(c)(3) or Section 501(c)(4) of the Internal Revenue Code.
SEC. 3.Section 1.5 of this bill incorporates amendments to Section 87207 of the Government Code proposed by both this bill and Assembly Bill 10. It shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2016, (2) each bill amends Section 87207 of the Government Code, and (3) this bill is enacted after Assembly Bill 10, in which case Section 1 of this bill shall not become operative.
SEC. 4.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.
SEC. 5.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.
(a)If income is required to be reported under this article, the statement shall contain, except as provided in subdivision (b):
(1)The name and address of each source of income aggregating five hundred dollars ($500) or more in value, or fifty dollars ($50) or more in value if the income was a gift, and a general description of the business activity, if any, of each source.
(2)A statement whether the aggregate value of income from each source, or in the case of a loan, the highest amount owed to each source, was at least five hundred dollars ($500) but did not exceed one thousand dollars ($1,000), whether it was in excess of one thousand dollars ($1,000) but was not greater than ten thousand dollars ($10,000), whether it was greater than ten thousand dollars ($10,000) but not greater than one hundred thousand dollars ($100,000), or whether it was greater than one hundred thousand dollars ($100,000).
(3)A description of the consideration, if any, for which the income was received.
(4)In the case of a gift, the amount and the date on which the gift was received, and the travel destination for purposes of a gift that is a travel payment, advance, or reimbursement.
(5)In the case of a loan, the annual interest rate, the security, if any, given for the loan, and the term of the loan.
(b)If the filers pro rata share of income to a business entity, including income to a sole proprietorship, is required to be reported under this article, the statement shall contain:
(1)The name, address, and a general description of the business activity of the business entity.
(2)The name of every person from whom the business entity received payments if the filers pro rata share of gross receipts from that person was equal to or greater than ten thousand dollars ($10,000) during a calendar year.
(c)If a payment, including an advance or reimbursement, for travel is required to be reported pursuant to this section, it may be reported on a separate travel reimbursement schedule which shall be included in the filers statement of economic interest. A filer who chooses not to use the travel schedule shall disclose payments for travel as a gift, unless it is clear from all surrounding circumstances that the services provided were equal to or greater in value than the payments for the travel, in which case the travel may be reported as income.
SEC. 1.5.Section 87207 of the Government Code is amended to read:87207.(a)When Except as provided in subdivision (b), if income is required to be reported under this article, the statement shall contain, except as provided in subdivision (b): contain all of the following:
(1)The name and address of each source of income aggregating five hundred one thousand dollars ($500) ($1,000) or more in value, or fifty dollars ($50) or more in value if the income was a gift, and a general description of the business activity, if any, of each source.
(2)A statement whether indicating which of the following represents the aggregate value of income from each source, or in the case of a loan, the highest amount owed to each source, was at least five hundred dollars ($500) but did not exceed one thousand dollars ($1,000), whether it was in excess of one thousand dollars ($1,000) but was not greater than ten thousand dollars ($10,000), whether it was greater than ten thousand dollars ($10,000) but not greater than one hundred thousand dollars ($100,000), or whether it was greater than one hundred thousand dollars ($100,000). source:
(A)At least one thousand dollars ($1,000) but not greater than ten thousand dollars ($10,000).
(B)Greater than ten thousand dollars ($10,000) but not greater than one hundred thousand dollars ($100,000).
(C)Greater than one hundred thousand dollars ($100,000) but not greater than two hundred fifty thousand dollars ($250,000).
(D)Greater than two hundred fifty thousand dollars ($250,000) but not greater than five hundred thousand dollars ($500,000).
(E)Greater than five hundred thousand dollars ($500,000).
(3)A description of the consideration, if any, for which the income was received.
(4)In the case of a gift, the amount and the date on which the gift was received. received, and the travel destination for purposes of a gift that is a travel payment, advance, or reimbursement.
(5)In the case of a loan, the annual interest rate, the security, if any, given for the loan, and the term of the loan.
(b)When If the filers pro rata share of income to a business entity, including income to a sole proprietorship, is required to be reported under this article, the statement shall contain: contain the following:
(1)(A)The name, address, and, except as provided in subparagraph (B), a thorough and detailed description of the business activity of the business entity based on criteria established by the commission.
(B)The name, address, and a general A filer is not required to provide a thorough and detailed description of the business activity of the business entity. entity if the business entity is publicly traded.
(2)The name of every person from whom the business entity received payments if the filers pro rata share of gross receipts from that person was equal to or greater than ten thousand dollars ($10,000) during a calendar year.
(c)When If a payment, including an advance or reimbursement, for travel is required to be reported pursuant to this section, it may be reported on a separate travel reimbursement schedule schedule, which shall be included in the filers statement of economic interest. A filer who chooses not to use the travel schedule shall disclose payments for travel as a gift, unless it is clear from all surrounding circumstances that the services provided were equal to or greater in value than the payments for the travel, in which case the travel may be reported as income.
SEC. 2.Section 89506 of the Government Code is amended to read:89506.(a)Payments, advances, or reimbursements for travel, including actual transportation and related lodging and subsistence that is reasonably related to a legislative or governmental purpose, or to an issue of state, national, or international public policy, are not prohibited or limited by this chapter if either of the following applies:
(1)The travel is in connection with a speech given by the elected state officer, local elected officeholder, candidate for elective state office or local, local elective office, an individual specified in Section 87200, member of a state board or commission, or designated employee of a state or local government agency, the lodging and subsistence expenses are limited to the day immediately preceding, the day of, and the day immediately following the speech, and the travel is within the United States.
(2)The travel is provided by a government, a governmental agency, a foreign government, a governmental authority, a bona fide public or private educational institution, as defined in Section 203 of the Revenue and Taxation Code, a nonprofit organization that is exempt from taxation under Section 501(c)(3) of the Internal Revenue Code, or by a person domiciled outside the United States who substantially satisfies the requirements for tax-exempt status under Section 501(c)(3) of the Internal Revenue Code.
(b)Gifts of travel not described in subdivision (a) are subject to the limits in Section 89503.
(c)Subdivision (a) applies only to travel that is reported on the recipients statement of economic interests.
(d)For purposes of this section, a gift of travel does not include any of the following:
(1)Travel that is paid for from campaign funds, as permitted by Article 4 (commencing with Section 89510), or that is a contribution.
(2)Travel that is provided by the agency of a local elected officeholder, an elected state officer, member of a state board or commission, an individual specified in Section 87200, or a designated employee.
(3)Travel that is reasonably necessary in connection with a bona fide business, trade, or profession and that satisfies the criteria for federal income tax deduction for business expenses in Sections 162 and 274 of the Internal Revenue Code, unless the sole or predominant activity of the business, trade, or profession is making speeches.
(4)Travel that is excluded from the definition of a gift by any other provision of this title.
(e)This section does not apply to payments, advances, or reimbursements for travel and related lodging and subsistence permitted or limited by Section 170.9 of the Code of Civil Procedure.
(f)(1)A nonprofit organization that regularly organizes and hosts travel for elected officials and that makes payments, advances, or reimbursements that total more than ten thousand dollars ($10,000) in a calendar year, or that total more than five thousand dollars ($5,000) in a calendar year for a single person, for travel by an elected state officer or local elected officeholder as described in subdivision (a) shall disclose to the Commission the names of donors who did both of the following in the preceding year:
(A)Donated one thousand dollars ($1,000) or more to the nonprofit organization.
(B)Accompanied an elected state officer or local elected officeholder, either personally or through an agent, employee, or representative, for any portion of travel described in subdivision (a).
(2)For purposes of this subdivision, an organization regularly organizes and hosts travel for elected officials if the sum of the organizations expenses that relate to any of the following types of activities with regard to elected officials was greater than one-third of its total expenses reflected on the organizations Internal Revenue Service Form 990, or the equivalent, filed most recently within the last twelve 12 months:
(A)Travel.
(B)Study tours.
(C)Conferences, conventions, and meetings.
(3)This subdivision does not preclude a finding that a nonprofit organization is acting as an intermediary or agent of the donor. If the nonprofit organization is acting as an intermediary or agent of the donor, all of the following apply:
(A)The donor to the nonprofit organization is the source of the gift.
(B)The donor shall be identified as a financial interest under Section 87103.
(C)The gift shall be reported as required by Section 87207.
(D)The gift shall be subject to the limitations on gifts specified in Section 89503.
(4)For purposes of this subdivision, a nonprofit organization includes an organization that is exempt from taxation under Section 501(c)(3) or Section 501(c)(4) of the Internal Revenue Code.
SEC. 3.Section 1.5 of this bill incorporates amendments to Section 87207 of the Government Code proposed by both this bill and AB 10. It shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2016, (2) each bill amends Section 87207 of the Government Code, and (3) this bill is enacted after AB 10, in which case Section 1 of this bill shall not become operative.
SEC. 3.SEC. 4.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.
SEC. 4.SEC. 5.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.
(a)If income is required to be reported under this article, the statement shall contain, except as provided in subdivision (b):
(1)The name and address of each source of income aggregating five hundred dollars ($500) or more in value, or fifty dollars ($50) or more in value if the income was a gift, and a general description of the business activity, if any, of each source.
(2)A statement whether the aggregate value of income from each source, or in the case of a loan, the highest amount owed to each source, was at least five hundred dollars ($500) but did not exceed one thousand dollars ($1,000), whether it was in excess of one thousand dollars ($1,000) but was not greater than ten thousand dollars ($10,000), whether it was greater than ten thousand dollars ($10,000) but not greater than one hundred thousand dollars ($100,000), or whether it was greater than one hundred thousand dollars ($100,000).
(3)A description of the consideration, if any, for which the income was received.
(4)In the case of a gift, the amount and the date on which the gift was received, and the travel destination for purposes of a gift that is a travel payment, advance, or reimbursement.
(5)In the case of a loan, the annual interest rate, the security, if any, given for the loan, and the term of the loan.
(b)If the filers pro rata share of income to a business entity, including income to a sole proprietorship, is required to be reported under this article, the statement shall contain:
(1)The name, address, and a general description of the business activity of the business entity.
(2)The name of every person from whom the business entity received payments if the filers pro rata share of gross receipts from that person was equal to or greater than ten thousand dollars ($10,000) during a calendar year.
(c)If a payment, including an advance or reimbursement, for travel is required to be reported pursuant to this section, it may be reported on a separate travel reimbursement schedule which shall be included in the filers statement of economic interest. A filer who chooses not to use the travel schedule shall disclose payments for travel as a gift, unless it is clear from all surrounding circumstances that the services provided were equal to or greater in value than the payments for the travel, in which case the travel may be reported as income.
SEC. 2.Section 89506 of the Government Code is amended to read:89506.(a)Payments, advances, or reimbursements for travel, including actual transportation and related lodging and subsistence that is reasonably related to a legislative or governmental purpose, or to an issue of state, national, or international public policy, are not prohibited or limited by this chapter if either of the following applies:
(1)The travel is in connection with a speech given by the elected state officer, local elected officeholder, candidate for elective state office or local, elective office, an individual specified in Section 87200, member of a state board or commission, or designated employee of a state or local government agency, the lodging and subsistence expenses are limited to the day immediately preceding, the day of, and the day immediately following the speech, and the travel is within the United States.
(2)The travel is provided by a government, a governmental agency, a foreign government, a governmental authority, a bona fide public or private educational institution, as defined in Section 203 of the Revenue and Taxation Code, a nonprofit organization that is exempt from taxation under Section 501(c)(3) of the Internal Revenue Code, or by a person domiciled outside the United States who substantially satisfies the requirements for tax-exempt status under Section 501(c)(3) of the Internal Revenue Code.
(b)Gifts of travel not described in subdivision (a) are subject to the limits in Section 89503.
(c)Subdivision (a) applies only to travel that is reported on the recipients statement of economic interests.
(d)For purposes of this section, a gift of travel does not include any of the following:
(1)Travel that is paid for from campaign funds, as permitted by Article 4 (commencing with Section 89510), or that is a contribution.
(2)Travel that is provided by the agency of a local elected officeholder, an elected state officer, member of a state board or commission, an individual specified in Section 87200, or a designated employee.
(3)Travel that is reasonably necessary in connection with a bona fide business, trade, or profession and that satisfies the criteria for federal income tax deduction for business expenses in Sections 162 and 274 of the Internal Revenue Code, unless the sole or predominant activity of the business, trade, or profession is making speeches.
(4)Travel that is excluded from the definition of a gift by any other provision of this title.
(e)This section does not apply to payments, advances, or reimbursements for travel and related lodging and subsistence permitted or limited by Section 170.9 of the Code of Civil Procedure.
(f)(1)A nonprofit organization that regularly organizes and hosts travel for elected officials and that makes payments, advances, or reimbursements that total more than ten thousand dollars ($10,000) in a calendar year, or that total more than five thousand dollars ($5,000) in a calendar year for a single person, for travel by an elected state officer or local elected officeholder as described in subdivision (a) shall disclose to the Commission the names of the donors responsible for funding those payments, advances, or reimbursements. The disclosure of donor names shall be limited to donors who did both of the following in the preceding year: donated
(A)Donated one thousand dollars ($1,000) or more to the nonprofit organization in a calendar year and who knew or had reason to know that the donation would be used for a payment, advance, or reimbursement for travel by an elected state officer or local elected officeholder as described in subdivision (a). organization.
(2)A donor knows or has reason to know that his or her donation will be used in the manner described in paragraph (1) under any of the following conditions:
(A)The donor directed the nonprofit organization to use the donation to make a payment, advance, or reimbursement for travel by an elected state officer or local elected officeholder as described in subdivision (a).
(B)The donor made the donation in response to a message or solicitation for donations for the stated purpose of making a payment, advance, or reimbursement for travel by an elected state officer or local elected officeholder as described in subdivision (a).
(C)The donor, or an agent, employee, or representative of the donor, accompanied an elected state officer or local elected officeholder for any portion of travel as described in subdivision (a).
(3)
(B)Accompanied an elected state officer or local elected officeholder, either personally or through an agent, employee, or representative, for any portion of travel described in subdivision (a).
(2)For purposes of this subdivision, an organization regularly organizes and hosts travel for elected officials if the sum of the organizations expenses that relate to any of the following types of activities with regard to elected officials was greater than one-third of its total expenses reflected on the organizations Internal Revenue Service Form 990, or the equivalent, filed most recently within the last twelve months:
(A)Travel.
(B)Study tours.
(C)Conferences, conventions, and meetings.
(3)For purposes of Sections 87103, 87207, and 89503, a nonprofit organization that makes payments, advances, or reimbursements for travel by an elected state officer or local elected officeholder as described in subdivision (a) is the source of the gift unless the nonprofit organization This subdivision does not preclude a finding that a nonprofit organization is acting as an intermediary or agent of the donor. If the nonprofit organization is acting as an intermediary or agent of the donor, all of the following apply:
(A)The donor to the nonprofit organization is the source of the gift.
(B)The donor shall be identified as a financial interest under Section 87103.
(C)The gift shall be reported as required by Section 87207.
(D)The gift shall be subject to the limitations on gifts specified in Section 89503.
(4)For purposes of this subdivision, a nonprofit organization includes an organization that is exempt from taxation under Section 501(c)(3) or Section 501(c)(4) of the Internal Revenue Code.
SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.
SEC. 4.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.
(a)When If income is required to be reported under this article, the statement shall contain, except as provided in subdivision (b):
(1)The name and address of each source of income aggregating five hundred dollars ($500) or more in value, or fifty dollars ($50) or more in value if the income was a gift, and a general description of the business activity, if any, of each source.
(2)A statement whether the aggregate value of income from each source, or in the case of a loan, the highest amount owed to each source, was at least five hundred dollars ($500) but did not exceed one thousand dollars ($1,000), whether it was in excess of one thousand dollars ($1,000) but was not greater than ten thousand dollars ($10,000), whether it was greater than ten thousand dollars ($10,000) but not greater than one hundred thousand dollars ($100,000), or whether it was greater than one hundred thousand dollars ($100,000).
(3)A description of the consideration, if any, for which the income was received.
(4)In the case of a gift, the amount and the date on which the gift was received, and the travel destination for purposes of a gift that is a travel payment, advance, or reimbursement.
(5)In the case of a loan, the annual interest rate, the security, if any, given for the loan, and the term of the loan.
(b)When If the filers pro rata share of income to a business entity, including income to a sole proprietorship, is required to be reported under this article, the statement shall contain:
(1)The name, address, and a general description of the business activity of the business entity.
(2)The name of every person from whom the business entity received payments if the filers pro rata share of gross receipts from that person was equal to or greater than ten thousand dollars ($10,000) during a calendar year.
(c)When If a payment, including an advance or reimbursement, for travel is required to be reported pursuant to this section, it may be reported on a separate travel reimbursement schedule which shall be included in the filers statement of economic interest. A filer who chooses not to use the travel schedule shall disclose payments for travel as a gift, unless it is clear from all surrounding circumstances that the services provided were equal to or greater in value than the payments for the travel, in which case the travel may be reported as income.
SEC. 2.Section 89506 of the Government Code is amended to read:89506.(a)Payments, advances, or reimbursements, for travel, including actual transportation and related lodging and subsistence that is reasonably related to a legislative or governmental purpose, or to an issue of state, national, or international public policy, are not prohibited or limited by this chapter if either of the following apply applies:
(1)The travel is in connection with a speech given by the elected state officer, local elected officeholder, candidate for elected elective state office or local elected, elective office, an individual specified in Section 87200, member of a state board or commission, or designated employee of a state or local government agency, the lodging and subsistence expenses are limited to the day immediately preceding, the day of, and the day immediately following the speech, and the travel is within the United States.
(2)The travel is provided by a government, a governmental agency, a foreign government, a governmental authority, a bona fide public or private educational institution, as defined in Section 203 of the Revenue and Taxation Code, a nonprofit organization that is exempt from taxation under Section 501(c)(3) of the Internal Revenue Code, or by a person domiciled outside the United States which who substantially satisfies the requirements for tax-exempt status under Section 501(c)(3) of the Internal Revenue Code.
(b)Gifts of travel not described in subdivision (a) are subject to the limits in Section 89503.
(c)Subdivision (a) applies only to travel that is reported on the recipients statement of economic interests.
(d)For purposes of this section, a gift of travel does not include any of the following:
(1)Travel that is paid for from campaign funds, as permitted by Article 4 (commencing with Section 89510), or that is a contribution.
(2)Travel that is provided by the agency of a local elected officeholder, an elected state officer, member of a state board or commission, an individual specified in Section 87200, or a designated employee.
(3)Travel that is reasonably necessary in connection with a bona fide business, trade, or profession and that satisfies the criteria for federal income tax deduction for business expenses in Sections 162 and 274 of the Internal Revenue Code, unless the sole or predominant activity of the business, trade, or profession is making speeches.
(4)Travel that is excluded from the definition of a gift by any other provision of this title.
(e)This section does not apply to payments, advances, or reimbursements for travel and related lodging and subsistence permitted or limited by Section 170.9 of the Code of Civil Procedure.
(f)(1)A nonprofit organization that makes payments, advances, or reimbursements that total more than ten thousand dollars ($10,000) in a calendar year, or that total more than five thousand dollars ($5,000) in a calendar year for a single person, for travel by an elected state officer or local elected officeholder as described in subdivision (a) shall disclose to the Commission the names of the donors responsible for funding those payments, advances, or reimbursements. The disclosure of donor names shall be limited to donors who donated one thousand dollars ($1,000) or more to the nonprofit organization in a calendar year and who knew or had reason to know that the donation would be used for a payment, advance, or reimbursement for travel by an elected state officer or local elected officeholder as described in subdivision (a).
(2)A donor knows or has reason to know that his or her donation will be used in the manner described in paragraph (1) under any of the following conditions:
(A)The donor directed the nonprofit organization to use the donation to make a payment, advance, or reimbursement for travel by an elected state officer or local elected officeholder as described in subdivision (a).
(B)The donor made the donation in response to a message or solicitation for donations for the stated purpose of making a payment, advance, or reimbursement for travel by an elected state officer or local elected officeholder as described in subdivision (a).
(C)The donor, or an agent, employee, or representative of the donor, accompanied an elected state officer or local elected officeholder for any portion of travel as described in subdivision (a).
(3)For purposes of Sections 87103, 87207, and 89503, a nonprofit organization that makes payments, advances, or reimbursements for travel by an elected state officer or local elected officeholder as described in subdivision (a) is the source of the gift unless the nonprofit organization is acting as an intermediary or agent of the donor. If the nonprofit organization is acting as an intermediary or agent of the donor, all of the following apply:
(A)The donor to the nonprofit organization is the source of the gift.
(B)The donor shall be identified as a financial interest under Section 87103.
(C)The gift shall be reported as required by Section 87207.
(D)The gift shall be subject to the limitations on gifts specified in Section 89503.
SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.
SEC. 4.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.
|
Date
|
Status
|
|---|---|
| Sep 10, 2015 | Assembly amendments concurred in. (Ayes 36. Noes 0.) Ordered to engrossing and enrolling. |
| Aug 28, 2015 | From committee: Do pass. (Ayes 17. Noes 0.) (August 27). |
| Aug 28, 2015 | Read second time. Ordered to third reading. |
| Sep 8, 2015 | In Senate. Concurrence in Assembly amendments pending. |
| Sep 8, 2015 | Read third time. Passed. Ordered to the Senate. |
| Sep 8, 2015 | Read third time. Passed. (Ayes 78. Noes 0. Page 2952.) Ordered to the Senate. |
| Sep 10, 2015 | (Ayes 39. Noes 0. Page 2677.) |
| Sep 10, 2015 | (Ayes 39. Noes 0.) |
| Sep 10, 2015 | Assembly amendments concurred in. (Ayes 36. Noes 0. Page 2659.) Ordered to engrossing and enrolling. |
| Aug 26, 2015 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on APPR. |
| Sep 10, 2015 | Assembly amendments concurred in. (Ayes 36. Noes 1.) Ordered to engrossing and enrolling. |
| Sep 10, 2015 | Assembly amendments concurred in. (Ayes 37. Noes 1. Page 2678.) Ordered to engrossing and enrolling. |
| Sep 10, 2015 | Assembly amendments concurred in. (Ayes 37. Noes 1.) Ordered to engrossing and enrolling. |
| Sep 10, 2015 | Motion to reconsider made by Senator Hill. |
| Sep 10, 2015 | Reconsideration granted. |
| Sep 11, 2015 | Enrolled and presented to the Governor at 10:45 p.m. |
| Oct 10, 2015 | Approved by the Governor. |
| Oct 10, 2015 | Chaptered by Secretary of State. Chapter 757, Statutes of 2015. |
| May 28, 2015 | From committee: Do pass. (Ayes 7. Noes 0.) (May 28). |
| Dec 2, 2014 | From printer. May be acted upon on or after January 1. |
| Jan 15, 2015 | Referred to Com. on E. & C.A. |
| Mar 24, 2015 | Set for hearing April 7. |
| Apr 8, 2015 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 3. Noes 1. Page 523.) (April 7). Re-referred to Com. on APPR. |
| Apr 10, 2015 | Set for hearing April 20. |
| Apr 20, 2015 | April 20 hearing: Placed on APPR. suspense file. |
| May 23, 2015 | Set for hearing May 28. |
| May 28, 2015 | From committee: Do pass. (Ayes 7. Noes 0. Page 1145.) (May 28). |
| Dec 1, 2014 | Introduced. Read first time. To Com. on RLS. for assignment. To print. |
| May 28, 2015 | Read second time. Ordered to third reading. |
| Jun 1, 2015 | Read third time. Passed. (Ayes 36. Noes 1. Page 1192.) Ordered to the Assembly. |
| Jun 1, 2015 | Read third time. Passed. (Ayes 36. Noes 1.) Ordered to the Assembly. |
| Jun 2, 2015 | In Assembly. Read first time. Held at Desk. |
| Jun 15, 2015 | Referred to Com. on E. & R. |
| Jul 1, 2015 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 0.) (July 1). Re-referred to Com. on APPR. |
| Aug 17, 2015 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on APPR. |
| Aug 19, 2015 | August 19 set for first hearing. Placed on APPR. suspense file. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Sep 10, 2015 | Unfinished Business SB21 Hill Concurrence | Senate Floor |
Passed |
|
| Sep 10, 2015 | Unfinished Business SB21 Hill Concurrence Reconsider | Senate Floor |
Passed |
|
| Sep 10, 2015 | Unfinished Business SB21 Hill Concurrence | Senate Floor |
Passed |
|
| Sep 8, 2015 | SB 21 Hill Senate Third Reading By GORDON | Assembly Floor |
Passed |
|
| Aug 27, 2015 | Do pass. | Assembly Standing Committee on Appropriations |
Passed |
|
| Jul 1, 2015 | Do pass and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Elections and Redistricting |
Passed |
|
| Jun 1, 2015 | Senate 3rd Reading SB21 Hill | Senate Floor |
Passed |
|
| May 28, 2015 | Do pass | Senate Standing Committee on Appropriations |
Passed |
|
| Apr 20, 2015 | Placed on suspense file | Senate Standing Committee on Appropriations |
Passed |
|
| Apr 7, 2015 | Do pass, but first be re-referred to the Committee on [Appropriations] | Senate Standing Committee on Elections and Constitutional Amendments |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| California Common Cause | ** Support | Sep 10, 2015 |
| California Newspaper Publishers Association | ** Support | Sep 10, 2015 |
| California Public Interest Research Group (Calpirg) | * Support | Jul 1, 2015 |
| League Of Women Voters Of California | ** Support | Sep 10, 2015 |
SB 21
Page 6
|
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 |
UNFINISHED BUSINESS
Bill No: SB 21
Amended: 8/26/15
SENATE ELECTIONS & C.A. COMMITTEE: 3-1, 4/7/15
AYES: Allen, Hancock, Hertzberg
NOES: Anderson
NO VOTE RECORDED: Liu
SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/28/15
AYES: Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen
SENATE FLOOR: 36-1, 6/1/15
AYES: Allen, Bates, Beall, Berryhill, Block, Cannella, De León, Fuller, Gaines, Galgiani, Glazer, Hall, Hancock, Hernandez, Hertzberg, Hill, Huff, Jackson, Leyva, Liu, McGuire, Mendoza, Mitchell, Monning, Moorlach, Morrell, Nguyen, Nielsen, Pan, Pavley, Roth, Runner, Stone, Vidak, Wieckowski, Wolk
NOES: Anderson
NO VOTE RECORDED: Hueso, Lara, Leno
ASSEMBLY FLOOR: 78-0, 9/8/15 - See last page for vote
SUBJECT: Political Reform Act of 1974: gifts of travel
DIGEST: This bill requires certain nonprofit organizations that pay for specified types of travel for elected officeholders to disclose the names of donors responsible for funding the travel. This bill requires an officeholder who receives a gift of a travel payment from any source to report the travel destination on his or her statement of economic interests (SEI).
Assembly Amendments (1) narrow application of the bill to specified nonprofit organizations that regularly organize and host travel for elected officials, as defined, and to donors who send a representative on any portion of the travel subject to disclosure, and (2) address a potential chaptering problem with AB 10 (Gatto).
Existing law:
Prohibits specified elected officeholders and other public officials from receiving gifts, as defined, in excess of $440 in value from a single source in a calendar year.
Exempts payments for the actual costs of specified types of travel from the annual gift limit. Specifically, payments for travel that is reasonably related to a legislative or governmental purpose, or to an issue of state, national, or international public policy are not subject to the gift limit if either of the following applies:
The travel is in connection with a speech given by the officeholder or official and the lodging and subsistence expenses are limited to the day immediately preceding, the day of, and the day immediately following the speech, and the travel is within the United States.
The travel is provided by a government, a governmental agency, a foreign government, a governmental authority, a bona fide public or private educational institution, a nonprofit organization that is exempt from taxation under Section 501(c)(3) of the Internal Revenue Code, or by a person domiciled outside the United States who substantially satisfies the requirements for tax-exempt status under Section 501(c)(3) of the Internal Revenue Code.
Requires candidates for, and current holders of, specified elected or appointed state and local offices and designated employees of state and local agencies to file periodic SEI rests disclosing their financial interests, including investments, real property interests, income, and gifts, including gifts of travel. SEI must include a description of the gift as well as the amount and the date on which the gift was received.
Provides that pursuant to Fair Political Practices Commission (FPPC) regulations, a person who makes a gift to a public official is the source of the gift for reporting and other applicable purposes unless that person is acting as an intermediary. The person is acting as an intermediary for the source of the gift when the gift to the official was provided under any of the following conditions:
The person receives a payment from a source and the payment is made to the official after the source identifies the official as the intended recipient of the gift;
The person receives a payment from a source after soliciting the payment with the understanding that the payment will be used for the sole or primary purpose of making a gift to an official; or
The person receives a payment from a source after the payment was solicited by the official or the official's agent for the purpose of making a gift to the official.
This bill:
Requires a tax exempt 501(c)(3) or 501(c)(4) nonprofit organization to disclose the names of certain donors to the organization if both of the following apply:
The organization makes payments, advances, or reimbursements that total more than $10,000 in a calendar year, or that total more than $5,000 in a calendar year for a single person, for travel by an elected state or local officer related to a legislative or governmental purpose, or to an issue of state, national, or international public policy; and,
The sum of the organization's expenses that relate to elected officials' travel, study tours, or conferences, conventions, or meetings was greater than one-third of its total expenses reflected on the organization's most recently filed Internal Revenue Service Form 990.
Requires an organization that meets the criteria in 1) above, to disclose to the Fair Political Practices Commission (FPPC) the names of those donors who did both of the following in the preceding calendar year:
Donated at least $1,000 to the nonprofit organization; and,
Accompanied the elected official, either personally or through a representative of the donor, for any portion of the travel.
Provides that this bill shall not preclude a finding that a nonprofit organization is acting as an intermediary or agent of a donor of a gift of travel. Provides that if the nonprofit is acting as an intermediary or agent, all of the following apply:
The donor to the nonprofit organization is the source of the gift;
The donor shall be identified as a financial interest, as specified;
The gift is required to be reported, as specified; and,
The gift is subject to the limitation on gifts, as specified.
Requires a public official who receives a gift that is a travel payment, advance, or reimbursement that must be disclosed on the official's SEI, to disclose the travel destination on the SEI.
Contains double-jointing language to avoid chaptering problems with AB 10 (Gatto) of the current legislative session.
Background
Travel payment exceptions. As discussed above, some travel payments are not subject to the $440 gift limit but are reportable on an official’s statement of economic interests, e.g., certain travel in connection with a speech, panel or seminar and certain travel provided by specified nonprofit organizations.
While nonprofit organizations must submit some specified financial information to the United States Internal Revenue Service and make it publicly available, they are not generally required to publicly disclose the identity of their donors. Hence, nonprofit organizations that provide payments for foreign and domestic travel for California public officials are not required to publicly disclose this information either even when donations are solicited for those purposes provided they are not solicited for a specific recipient of the travel payment.
Comments
According to the author, under current law, the public has no way of knowing who is paying for legislator travel or where they are going. Donors hide behind non-profits preventing the public from knowing who was behind the gift to the elected official. The public has a right to know where elected officials are traveling when the travel is paid for by special interests. The public also has a right to know which special interests are paying for the travel.
Examples of non-profits that fund legislator travel include: California Foundation on the Environment and the Economy, California Independent Voter Project, and the Pacific Policy Research Foundation. An analysis by the Sacramento Bee found that California lawmakers received more than $550,000 in travel-related expenses from outside organizations in 2013.
Related/Prior Legislation
This
bill is a reintroduction of a portion of SB 831 (Hill, 2014) which
was vetoed by the Governor. The Governor vetoed the bill because it
contained many restrictions in addition to disclosure requirements.
The restrictions in SB 831 included:
Prohibiting elected officials from contributing campaign funds to 501(c)(4) nonprofits owned or operated by their family members.
Prohibiting elected officials from asking people to donate to a 501(c)(4) nonprofit owned or operated by a family member.
Prohibiting elected officials from contributing campaign funds to 501(c)(4) nonprofits operated by another elected official on the same governing body.
Prohibiting the expenditure of campaign funds for an elected official’s mortgage, rent, utility bills, clothing, club memberships, vacations, tuition, vehicles, and gifts to family members.
SB 21 removes the prohibitions in last year’s SB 831 and only requires increased transparency for elected official travel.
In his veto message,
the Governor stated the following: “The activities that are
addressed by this bill are already subject to extensive regulation,
including robust disclosure requirements. The additional restrictions
proposed by this bill would add more complexity to the regulations
governing elected officials, without reducing undue influence.”
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
According to the Assembly Appropriations Committee, the FPPC will incur one-time General Fund costs of $90,000 for one-half position to develop the forms and procedures for implementing the new reporting requirements. Ongoing General Fund costs would be around $170,000 for regulations, responding to advice requests, monitoring filings, and enforcement.
California Common Cause
California Newspaper Publishers Association
California Public Interest Research Group
League of Women Voters of California
None received
ASSEMBLY FLOOR: 78-0, 9/8/15
AYES: Achadjian, Alejo, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins
NO VOTE RECORDED: Travis Allen, Chávez
Prepared by: Darren Chesin / E. & C.A. / (916) 651-4106
9/9/15 9:07:30
**** END ****
SB 21
Page 3
SENATE THIRD READING
SB 21
(Hill)
As Amended August 26, 2015
2/3 vote
SENATE VOTE: 36-1
Committee |
Votes |
Ayes |
Noes |
Elections |
6-0 |
Ridley-Thomas, Grove, Gatto, Gordon, Mullin, Perea |
|
Appropriations |
17-0 |
Gomez, Bigelow, Bloom, Bonta, Calderon, Chang, Nazarian, Eggman, Gallagher, Eduardo Garcia, Holden, Jones, Quirk, Rendon, Wagner, Weber, Wood |
|
SUMMARY: Requires specified nonprofit organizations that make payments for travel by public officials to disclose the names of certain donors. Requires a public official who receives a gift of travel to disclose the destination of the travel. Specifically, this bill:
Requires a tax exempt 501(c)(3) or 501(c)(4) nonprofit organization to disclose the names of certain donors to the organization if both of the following apply:
The organization makes payments, advances, or reimbursements that total more than $10,000 in a calendar year, or that total more than $5,000 in a calendar year for a single person, for travel by an elected state or local officer related to a legislative or governmental purpose, or to an issue of state, national, or international public policy; and,
The sum of the organization's expenses that relate to elected officials' travel, study tours, or conferences, conventions, or meetings was greater than one-third of its total expenses reflected on the organization's most recently filed Internal Revenue Service Form 990.
Requires an organization that meets the criteria in 1) above, to disclose to the Fair Political Practices Commission (FPPC) the names of those donors who did both of the following in the preceding calendar year:
Donated at least $1,000 to the nonprofit organization; and,
Accompanied the elected official, either personally or through a representative of the donor, for any portion of the travel.
Provides that this bill shall not preclude a finding that a nonprofit organization is acting as an intermediary or agent of a donor of a gift of travel. Provides that if the nonprofit is acting as an intermediary or agent, all of the following apply:
The donor to the nonprofit organization is the source of the gift;
The donor shall be identified as a financial interest, as specified;
The gift is required to be reported, as specified; and,
The gift is subject to the limitation on gifts, as specified.
Requires a public official who receives a gift that is a travel payment, advance, or reimbursement that must be disclosed on the official's Statement of Economic Interests (SEI), to disclose the travel destination on the SEI.
Contains double-jointing language to avoid chaptering problems with AB 10 (Gatto) of the current legislative session.
FISCAL EFFECT: According to the Assembly Appropriations Committee, the FPPC will incur one-time General Fund costs of $90,000 for one-half position to develop the forms and procedures for implementing the new reporting requirements. Ongoing General Fund costs would be around $170,000 for regulations, responding to advice requests, monitoring filings, and enforcement.
COMMENTS: According to the author, "SB 21 increases transparency within the Political Reform Act [PRA] by requiring non-profits that pay for elected official travel to disclose to the FPPC the names of the donors responsible for funding the travel. Currently non-profits do not have to disclose the source of travel funding preventing the public from knowing who was behind the gift to the elected official. The bill would also require elected officials to disclose to the FPPC the destination of the travel."
Certain payments for travel related to a legislative or governmental purpose, or to an issue of state, national, or international public policy, are not subject to gift limits if the travel is: 1) in connection with a speech given by the official, or 2) provided by a government agency, a bona fide public or private educational institution, as specified, or a nonprofit organization pursuant to Section 501(c)(3) of the Internal Revenue Code or a similar foreign organization.
While nonprofit organizations must submit some financial information to the United States Internal Revenue Service and make it publicly available, they are not generally required to publicly disclose the identity of their donors. As a result, nonprofit organizations that provide payments for foreign and domestic travel for California public officials are not required to publicly disclose this information, even when donations are solicited for those purposes, as long as the payments are not solicited for a specific recipient of the travel payment.
This bill is similar to portions of SB 831 (Hill) of 2014, which was vetoed by Governor Brown. In his veto message, the Governor wrote, "The activities that are addressed by this bill are already subject to extensive regulation, including robust disclosure requirements. The additional restrictions proposed by this bill would add more complexity to the regulations governing elected officials, without reducing undue influence."
California voters passed an initiative, Proposition 9, in 1974 that created the FPPC and codified significant restrictions and prohibitions on candidates, officeholders and lobbyists. That initiative is commonly known as the PRA. Amendments to the PRA that are not submitted to the voters, such as those contained in this bill, must further the purposes of the initiative and require a two-thirds vote of both houses of the Legislature.
Please see the policy committee analysis for a full discussion of this bill.
Analysis Prepared by: Ethan Jones / E. & R. / (916) 319-2094 FN: 0001660
Date of Hearing: August 19, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
SB 21
(Hill) – As Introduced August 17, 2015
Policy Committee: |
Elections and Redistricting |
Vote: |
6 - 0 |
|
|
|
|
|
|
|
|
Urgency: No State Mandated Local Program: Yes Reimbursable: No
SUMMARY:
This bill amends the Political Reform Act (PRA) to require disclosure of certain donations made to pay for travel and related expenses of elected officials. Specifically, this bill:
Requires a tax exempt 501(c)(3) or 501(c)(4) nonprofit organization—for which at least one-third of its total expenses in the prior twelve months involved payments, advances, or reimbursements exceeding $10,000 in total or $5,000 for a single person for hosting travel for elected officials with respect to the costs for those officials' travel, study tours, or conferences, conventions, or meetings—to disclose to the Fair Political Practices Commission (FPPC) the names of those donors who did both of the following in the preceding calendar year:
Donated at least $1,000 to the nonprofit organization, and
Accompanied the elected official, either personally or through a representative of the donor, for any portion of the subject travel.
Provides that if the nonprofit is acting as an intermediary or agent, all of the following apply:
The donor to the nonprofit organization is the source of the gift;
The donor shall be identified as a financial interest, as specified;
The gift is required to be reported, as specified; and,
The gift is subject to the limitation on gifts, as specified.
Requires a public official who receives a gift that is a travel payment, advance, or reimbursement, and who is required to report that gift on his or her Statement of Economic Interests (SEI), to disclose the travel destination on the SEI in addition to the value of the payment, advance, or reimbursement.
FISCAL EFFECT:
The Fair Political Practices Commission (FPPC) will incur one-time General Fund costs of $90,000 for one-half position to develop the forms and procedures for implementing the new reporting requirements. Ongoing General Fund costs would be around $170,000 for regulations, responding to advice requests, monitoring filings, and enforcement.
COMMENTS:
Purpose. According to the author, "SB 21 increases transparency within the [PRA] by requiring non-profits that pay for elected official travel to disclose to the FPPC the names of the donors responsible for funding the travel. Currently non-profits do not have to disclose the source of travel funding preventing the public from knowing who was behind the gift to the elected official. The bill would also require elected officials to disclose to the FPPC the destination of the travel."
While nonprofit organizations must submit some financial information to the United States Internal Revenue Service and make it publicly available, they are not generally required to publicly disclose the identity of their donors. As a result, nonprofit organizations that provide payments for foreign and domestic travel for California public officials are not required to publicly disclose this information, even when donations are solicited for those purposes, as long as the payments are not solicited for a specific recipient of the travel payment.
Prior Legislation. This bill is a more narrow version of SB 831 (Hill) of 2014, which also proposed new restrictions on the use of campaign funds and would have prohibited an elected official from requesting that behested payments be made to specified nonprofit organizations that are owned or controlled by that official or by family members of the official. SB 831 was vetoed, with the Governor stating, "The activities that are addressed by this bill are already subject to extensive regulation, including robust disclosure requirements. The additional restrictions proposed by this bill would add more complexity to the regulations governing elected officials, without reducing undue influence."
Analysis Prepared by: Chuck Nicol / APPR. / (916) 319-2081
SB 21
Page 5
Date of Hearing: July 1, 2015
ASSEMBLY COMMITTEE ON ELECTIONS AND REDISTRICTING
Sebastian Ridley-Thomas, Chair
SB 21
(Hill) – As Introduced December 1, 2014
SENATE VOTE: 36-1
SUBJECT: Political Reform Act of 1974: gifts of travel.
SUMMARY: Requires nonprofit organizations that make travel payments for travel by public officials to disclose the names of the donors who funded such payments, as specified. Requires a public official who receives a gift that is a travel payment to disclose the destination of the travel, as specified. Specifically, this bill:
Requires a nonprofit organization that makes payments, advances, or reimbursements that total more than $10,000 in a calendar year, or that total more than $5,000 in a calendar year for a single person, for travel by an elected state officer or local elected officeholder related to a legislative or governmental purpose, or to an issue of state, national, or international public policy, to disclose to the Fair Political Practices Commission (FPPC) the names of donors responsible for funding the payments, advances, or reimbursements. Provides that the names must be disclosed only for donors who donated $1,000 or more in a calendar year and who knew or had reason to know that their donation would be used for a payment, advance, or reimbursement for the travel. Provides that a donor knows or has reason to know that his or her donation will be used for the travel under any of the following conditions:
The donor directed the nonprofit organization to use the donation for the travel;
The donation was made in response to a solicitation for donations for the travel; or,
The donor, or an agent, employee, or representative of the donor, accompanied the officeholder for any portion of the travel.
Provides that a nonprofit organization that makes payments, advances, or reimbursements for travel by an elected state officer or local elected officeholder related to a legislative or governmental purpose, or to an issue of state, national, or international public policy, is the source of the gift to the officer unless the nonprofit organization is acting as an intermediary or agent of the donor. Provides that if the nonprofit is acting as an intermediary or agent, all of the following apply:
The donor to the nonprofit organization is the source of the gift;
The donor shall be identified as a financial interest, as specified;
The gift is required to be reported, as specified; and,
The gift is subject to the limitation on gifts, as specified.
Requires a public official who receives a gift that is a travel payment, advance, or reimbursement, and who is required to report that gift on his or her Statement of Economic Interests (SEI), to disclose the travel destination on the SEI in addition to the value of the payment, advance, or reimbursement.
EXISTING LAW:
Creates the FPPC, and makes it responsible for the impartial, effective administration and implementation of the Political Reform Act (PRA).
Prohibits specified elected officers and other public officials from receiving gifts, as defined, in excess of $460 in value from a single source in a calendar year. Provides that payments for travel that is reasonably related to a legislative or governmental purpose, or to an issue of state, national, or international public policy, are not subject to the gift limit if either of the following is true:
The travel is in connection with a speech given by the official and the lodging and subsistence expenses are limited to the day immediately preceding, the day of, and the day immediately following the speech, and the travel is within the United States; or,
The travel is provided by a government, a governmental agency, a foreign government, a governmental authority, a bona fide public or private educational institution, a nonprofit organization that is exempt from taxation under Section 501(c)(3) of the Internal Revenue Code, or by a person domiciled outside the United States who substantially satisfies the requirements for tax-exempt status under Section 501(c)(3) of the Internal Revenue Code.
Requires candidates for, and current holders of, specified elected or appointed state and local offices and designated employees of state and local agencies to file SEIs disclosing their financial interests, including investments, real property interests, and income, including gifts.
Provides that a person who makes a gift to a public official is the source of the gift for reporting and other applicable purposes unless that person is acting as an intermediary. Provides that the person is acting as an intermediary for the source of the gift when the gift to the official was provided under any of the following conditions:
The person receives a payment from a source and the payment is made to the official after the source identifies the official as the intended recipient of the gift;
The person receives a payment from a source after soliciting the payment with the understanding that the payment will be used for the sole or primary purpose of making a gift to an official; or,
The person receives a payment from a source after the payment was solicited by the official or the official’s agent for the purpose of making a gift to the official.
Provides that in the case where a person is acting as an intermediary in making a gift, the source of the payment to that person that is used to make the gift is considered the source of the gift.
FISCAL EFFECT: According to the Senate Appropriations Committee, annual costs of $178,778 to the FPPC (General Fund). This estimate includes the need for one Political Reform Consultant and 1/2 of an Attorney III position to create the new form and update related materials; promulgate regulations; handle advice requests; and provide public outreach and education. State-mandated local program; contains a crimes and infractions disclaimer.
COMMENTS:
Purpose of the Bill: According to the author:
SB 21 increases transparency within the [PRA] by requiring non-profits that pay for elected official travel to disclose to the FPPC the names of the donors responsible for funding the travel.
Currently non-profits do not have to disclose the source of
travel funding preventing the public from knowing who was behind the
gift to the elected official.
The bill would also require elected officials to disclose to
the FPPC the destination of the travel.
This is a scaled back version of last year’s SB 831 – I’ve
only included the transparency provisions to address the Governor’s
veto message.
Gifts of Travel: As noted above, the PRA generally prohibits elected state and local officers, among others, from accepting gifts from a single source in a calendar year with a total value of more than $460. This gift limit is adjusted every two years to reflect changes in inflation. Additionally, elected state officers, among others, may not accept gifts aggregating more than $10 in a calendar month from or arranged by registered state lobbyists or lobbying firms. Travel payments received by public officials generally are considered to be reportable gifts or income under the PRA, with certain exceptions. If a travel payment is a gift, it is also normally subject to the $460 gift limit and $10 lobbyist gift limit, though certain exceptions apply.
Payments for travel (including lodging and subsistence) that are related to a legislative or governmental purpose, or to an issue of state, national, or international public policy, are considered gifts but are not subject to the $460 gift limit if the travel is: (1) in connection with a speech given by the official and any lodging and subsistence expenses are limited to the day immediately preceding, the day of, and the day immediately following the speech and the travel is within the United States, or (2) provided by a government agency or authority, a bona fide public or private educational institution, as specified, or a nonprofit organization pursuant to Section 501(c)(3) of the Internal Revenue Code or a similar foreign organization. Although these payments are not subject to the $460 gift limit, they must be reported on an official's SEI, and the travel payments can create a conflict of interest for the official.
While nonprofit organizations must submit some financial information to the United States Internal Revenue Service and make it publicly available, they are not generally required to publicly disclose the identity of their donors. As a result, nonprofit organizations that provide payments for foreign and domestic travel for California public officials are not required to publicly disclose this information, even when donations are solicited for those purposes, as long as the payments are not solicited for a specific recipient of the travel payment.Arguments in Support: In support of this bill, the League of Women Voters of California writes:
Californians have the right to know how travel by their elected officials is financed. SB 21 requires nonprofits that make significant payments for officials’ travel in connection with public policy issues or legislative or governmental purposes to disclose the names of donors who fund those payments. It also requires that gifts of travel disclosed on Statements of Economic Interests list the travel destination.
This improved transparency will reduce the public’s
perception of undue influence and corruption and bolster citizens’
faith in the honesty of their elected representatives, thus
encouraging citizen participation in the political process.
Previous Legislation: This bill is similar to portions of SB 831 (Hill) of 2014, which was vetoed by Governor Brown. In addition to the portions that were similar to this bill, SB 831 also proposed new restrictions on the use of campaign funds and would have prohibited an elected official from requesting that behested payments be made to specified nonprofit organizations that are owned or controlled by that official or by family members of the official. In his veto message, the Governor wrote "The activities that are addressed by this bill are already subject to extensive regulation, including robust disclosure requirements. The additional restrictions proposed by this bill would add more complexity to the regulations governing elected officials, without reducing undue influence."
Political Reform Act of 1974: California voters passed an initiative, Proposition 9, in 1974 that created the FPPC and codified significant restrictions and prohibitions on candidates, officeholders and lobbyists. That initiative is commonly known as the PRA. Amendments to the PRA that are not submitted to the voters, such as those contained in this bill, must further the purposes of the initiative and require a two-thirds vote of both houses of the Legislature
REGISTERED SUPPORT / OPPOSITION:
Support
California Newspaper Publishers Association
League of Women Voters of California
Opposition
None on file.
Analysis Prepared by: Ethan Jones / E. & R. / (916) 319-2094
SB 21
Page 5
|
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 |
THIRD READING
Bill No: SB 21
Introduced: 12/1/14
SENATE ELECTIONS & C.A. COMMITTEE: 3-1, 4/7/15
AYES: Allen, Hancock, Hertzberg
NOES: Anderson
NO VOTE RECORDED: Liu
SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/28/15
AYES: Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen
SUBJECT: Political Reform Act of 1974: gifts of travel
DIGEST: This bill requires a nonprofit organization that pays for specified types of travel for elected officeholders to disclose the names of donors responsible for funding the travel. This bill requires an officeholder who receives a gift of a travel payment from any source to report the travel destination on his or her statement of economic interests (SEI).
Existing law:
Prohibits specified elected officeholders and other public officials from receiving gifts, as defined, in excess of $440 in value from a single source in a calendar year.
Exempts payments for the actual costs of specified types of travel from the annual gift limit. Specifically, payments for travel that is reasonably related to a legislative or governmental purpose, or to an issue of state, national, or international public policy are not subject to the gift limit if either of the following applies:
The travel is in connection with a speech given by the officeholder or official and the lodging and subsistence expenses are limited to the day immediately preceding, the day of, and the day immediately following the speech, and the travel is within the United States.
The travel is provided by a government, a governmental agency, a foreign government, a governmental authority, a bona fide public or private educational institution, a nonprofit organization that is exempt from taxation under Section 501(c)(3) of the Internal Revenue Code, or by a person domiciled outside the United States who substantially satisfies the requirements for tax-exempt status under Section 501(c)(3) of the Internal Revenue Code.
Requires candidates for, and current holders of, specified elected or appointed state and local offices and designated employees of state and local agencies to file periodic SEI rests disclosing their financial interests, including investments, real property interests, income, and gifts, including gifts of travel. SEI must include a description of the gift as well as the amount and the date on which the gift was received.
Pursuant to Fair Political Practices Commission (FPPC) regulations, a person who makes a gift to a public official is the source of the gift for reporting and other applicable purposes unless that person is acting as an intermediary. The person is acting as an intermediary for the source of the gift when the gift to the official was provided under any of the following conditions:
The person receives a payment from a source and the payment is made to the official after the source identifies the official as the intended recipient of the gift;
The person receives a payment from a source after soliciting the payment with the understanding that the payment will be used for the sole or primary purpose of making a gift to an official; or
The person receives a payment from a source after the payment was solicited by the official or the official’s agent for the purpose of making a gift to the official.
This bill:
Provides that a nonprofit organization that makes payments, advances, or reimbursements that total more than $10,000 in a calendar year, or that total more than $5,000 in a calendar year for a single person, for travel by an elected state officer or local elected officeholder must disclose the names of the donors responsible for funding those payments, advances, or reimbursements.
Limits disclosure of donor names to those who donated $1,000 or more to the nonprofit organization in a calendar year and who knew or had reason to know that the donation would be used for travel by an elected state officer or local elected officeholder.
Provides that a donor knows or has reason to know that his or her donation will be used for such travel under any of the following conditions:
The donor directed the nonprofit organization to use the donation to make a payment, advance, or reimbursement for the travel.
The donor made the donation in response to a message or solicitation for donations for the stated purpose of making a payment, advance, or reimbursement for such travel.
The donor, or an agent, employee, or representative of the donor, accompanied an elected state officer or local elected officeholder for any portion of the travel.
Specifies that a nonprofit organization that makes payments, advances, or reimbursements for such travel is the source of the gift for reporting and other applicable purposes unless the nonprofit organization is acting as an intermediary or agent of the donor. If the nonprofit organization is acting as an intermediary or agent of the donor, the donor is the source of the gift for reporting and other applicable purposes including the $440 per year limit.
Requires that gifts that are travel payments, advances, or reimbursements disclosed on an official’s SEI must also include the travel destination.
Background
Travel payment exceptions. As discussed above, some travel payments are not subject to the $440 gift limit but are reportable on an official’s SEI, e.g., certain travel in connection with a speech, panel or seminar and certain travel provided by specified nonprofit organizations.
While nonprofit organizations must submit some specified financial information to the United States Internal Revenue Service and make it publicly available, they are not generally required to publicly disclose the identity of their donors. Hence, nonprofit organizations that provide payments for foreign and domestic travel for California public officials are not required to publicly disclose this information either even when donations are solicited for those purposes provided they are not solicited for a specific recipient of the travel payment.
Comments
According to the author: Under current law, the public has no way of knowing who is paying for legislator travel or where they are going. Donors hide behind non-profits preventing the public from knowing who was behind the gift to the elected official. The public has a right to know where elected officials are traveling when the travel is paid for by special interests. The public also has a right to know which special interests are paying for the travel.
Examples of non-profits that fund legislator travel include: California Foundation on the Environment and the Economy, California Independent Voter Project, and the Pacific Policy Research Foundation. An analysis by the Sacramento Bee found that California lawmakers received more than $550,000 in travel-related expenses from outside organizations in 2013.
This bill is a reintroduction of a portion of SB 831 (Hill of 2014), which was vetoed by the Governor. The Governor vetoed the measure because it contained many restrictions in addition to disclosure requirements. The restrictions in SB 831 included:
Prohibiting elected officials from contributing campaign funds to 501(c)(4) nonprofits owned or operated by their family members.
Prohibiting elected officials from asking people to donate to a 501(c)(4) nonprofit owned or operated by a family member.
Prohibiting elected officials from contributing campaign funds to 501(c)(4) nonprofits operated by another elected official on the same governing body.
Prohibiting the expenditure of campaign funds for an elected official’s mortgage, rent, utility bills, clothing, club memberships, vacations, tuition, vehicles, and gifts to family members.
SB 21 removes the prohibitions in last year’s SB 831 and only requires increased transparency for elected official travel.
In his veto message, the Governor Brown stated the following: “The activities that are addressed by this bill are already subject to extensive regulation, including robust disclosure requirements. The additional restrictions proposed by this bill would add more complexity to the regulations governing elected officials, without reducing undue influence.”
Prior/Related Legislation
This bill is identical to portions of SB 831 (Hill, 2014) which was vetoed by the Governor.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
According to the Senate Appropriations Committee:
Annual costs of $178,778 to the FPPC (General Fund)
The above estimate includes the need for 1 Political Reform Consultant and half of an Attorney III position to create the new form and update related materials; promulgate regulations; handle advice requests; and provide public outreach and education.
California Common Cause
CALPIRG
League of Women Voters of California
OPPOSITION: (Verified 5/27/15)
None received
Prepared by: Darren Chesin / E. & C.A. / (916) 651-4106
6/1/15 11:11:19
SB 21
Page 5
|
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 |
THIRD READING
Bill No: SB 21
Introduced: 12/1/14
SENATE ELECTIONS & C.A. COMMITTEE: 3-1, 4/7/15
AYES: Allen, Hancock, Hertzberg
NOES: Anderson
NO VOTE RECORDED: Liu
SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/28/15
AYES: Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen
SUBJECT: Political Reform Act of 1974: gifts of travel
DIGEST: This bill requires a nonprofit organization that pays for specified types of travel for elected officeholders to disclose the names of donors responsible for funding the travel. This bill requires an officeholder who receives a gift of a travel payment from any source to report the travel destination on his or her statement of economic interests (SEI).
Existing law:
Prohibits specified elected officeholders and other public officials from receiving gifts, as defined, in excess of $440 in value from a single source in a calendar year.
Exempts payments for the actual costs of specified types of travel from the annual gift limit. Specifically, payments for travel that is reasonably related to a legislative or governmental purpose, or to an issue of state, national, or international public policy are not subject to the gift limit if either of the following applies:
The travel is in connection with a speech given by the officeholder or official and the lodging and subsistence expenses are limited to the day immediately preceding, the day of, and the day immediately following the speech, and the travel is within the United States.
The travel is provided by a government, a governmental agency, a foreign government, a governmental authority, a bona fide public or private educational institution, a nonprofit organization that is exempt from taxation under Section 501(c)(3) of the Internal Revenue Code, or by a person domiciled outside the United States who substantially satisfies the requirements for tax-exempt status under Section 501(c)(3) of the Internal Revenue Code.
Requires candidates for, and current holders of, specified elected or appointed state and local offices and designated employees of state and local agencies to file periodic SEI rests disclosing their financial interests, including investments, real property interests, income, and gifts, including gifts of travel. SEI must include a description of the gift as well as the amount and the date on which the gift was received.
Pursuant to Fair Political Practices Commission (FPPC) regulations, a person who makes a gift to a public official is the source of the gift for reporting and other applicable purposes unless that person is acting as an intermediary. The person is acting as an intermediary for the source of the gift when the gift to the official was provided under any of the following conditions:
The person receives a payment from a source and the payment is made to the official after the source identifies the official as the intended recipient of the gift;
The person receives a payment from a source after soliciting the payment with the understanding that the payment will be used for the sole or primary purpose of making a gift to an official; or
The person receives a payment from a source after the payment was solicited by the official or the official’s agent for the purpose of making a gift to the official.
This bill:
Provides that a nonprofit organization that makes payments, advances, or reimbursements that total more than $10,000 in a calendar year, or that total more than $5,000 in a calendar year for a single person, for travel by an elected state officer or local elected officeholder must disclose the names of the donors responsible for funding those payments, advances, or reimbursements.
Limits disclosure of donor names to those who donated $1,000 or more to the nonprofit organization in a calendar year and who knew or had reason to know that the donation would be used for travel by an elected state officer or local elected officeholder.
Provides that a donor knows or has reason to know that his or her donation will be used for such travel under any of the following conditions:
The donor directed the nonprofit organization to use the donation to make a payment, advance, or reimbursement for the travel.
The donor made the donation in response to a message or solicitation for donations for the stated purpose of making a payment, advance, or reimbursement for such travel.
The donor, or an agent, employee, or representative of the donor, accompanied an elected state officer or local elected officeholder for any portion of the travel.
Specifies that a nonprofit organization that makes payments, advances, or reimbursements for such travel is the source of the gift for reporting and other applicable purposes unless the nonprofit organization is acting as an intermediary or agent of the donor. If the nonprofit organization is acting as an intermediary or agent of the donor, the donor is the source of the gift for reporting and other applicable purposes including the $440 per year limit.
Requires that gifts that are travel payments, advances, or reimbursements disclosed on an official’s SEI must also include the travel destination.
Background
Travel payment exceptions. As discussed above, some travel payments are not subject to the $440 gift limit but are reportable on an official’s SEI, e.g., certain travel in connection with a speech, panel or seminar and certain travel provided by specified nonprofit organizations.
While nonprofit organizations must submit some specified financial information to the United States Internal Revenue Service and make it publicly available, they are not generally required to publicly disclose the identity of their donors. Hence, nonprofit organizations that provide payments for foreign and domestic travel for California public officials are not required to publicly disclose this information either even when donations are solicited for those purposes provided they are not solicited for a specific recipient of the travel payment.
Comments
According to the author: Under current law, the public has no way of knowing who is paying for legislator travel or where they are going. Donors hide behind non-profits preventing the public from knowing who was behind the gift to the elected official. The public has a right to know where elected officials are traveling when the travel is paid for by special interests. The public also has a right to know which special interests are paying for the travel.
Examples of non-profits that fund legislator travel include: California Foundation on the Environment and the Economy, California Independent Voter Project, and the Pacific Policy Research Foundation. An analysis by the Sacramento Bee found that California lawmakers received more than $550,000 in travel-related expenses from outside organizations in 2013.
This bill is a reintroduction of a portion of SB 831 (Hill of 2014), which was vetoed by the Governor. The Governor vetoed the measure because it contained many restrictions in addition to disclosure requirements. The restrictions in SB 831 included:
Prohibiting elected officials from contributing campaign funds to 501(c)(4) nonprofits owned or operated by their family members.
Prohibiting elected officials from asking people to donate to a 501(c)(4) nonprofit owned or operated by a family member.
Prohibiting elected officials from contributing campaign funds to 501(c)(4) nonprofits operated by another elected official on the same governing body.
Prohibiting the expenditure of campaign funds for an elected official’s mortgage, rent, utility bills, clothing, club memberships, vacations, tuition, vehicles, and gifts to family members.
SB 21 removes the prohibitions in last year’s SB 831 and only requires increased transparency for elected official travel.
In his veto message, the Governor Brown stated the following: “The activities that are addressed by this bill are already subject to extensive regulation, including robust disclosure requirements. The additional restrictions proposed by this bill would add more complexity to the regulations governing elected officials, without reducing undue influence.”
Prior/Related Legislation
This bill is identical to portions of SB 831 (Hill, 2014) which was vetoed by the Governor.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
According to the Senate Appropriations Committee, there are
Annual costs of $178,778 to the FPPC (General Fund)
The above estimate includes the need for 1 Political Reform Consultant and half of an Attorney III position to create the new form and update related materials; promulgate regulations; handle advice requests; and provide public outreach and education.
California Common Cause
League of Women Voters of California
OPPOSITION: (Verified 5/27/15)
None received
Prepared by: Darren Chesin / E. & C.A. / (916) 651-4106
5/30/15 11:18:28
SB 21 (Hill) Page 3 of 3
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
SB 21 (Hill) - Political Reform Act of 1974: gifts of travel
|
|
Version: December 1, 2014 |
Policy Vote: E. & C.A. 3 - 1 |
Urgency: No |
Mandate: Yes |
Hearing Date: May 28, 2015 |
Consultant: Maureen Ortiz |
SUSPENSE FILE.
Bill Summary:
SB 21 requires nonprofit organizations that provide certain gifts of travel to elected state and local officials to disclose the names of donors responsible for funding the payments, as specified. Additionally, the bill requires elected officials that report gifts of travel payments on the Statement of Economic Interest to also include the travel destination.
Fiscal Impact:
Annual costs of $178,778 to the Fair Political Practices Commission (General Fund)
The above estimate includes the need for 1 Political Reform Consultant and ½ of an Attorney III position to create the new form and update related materials; promulgate regulations; handle advice requests; and provide public outreach and education.
Background:
Existing law prohibits specified elected officeholders and other public officials from receiving gifts, as defined, in excess of $440 in value from a single source in a calendar year. However, payments for the actual costs of travel that is reasonably related to a legislative or governmental purpose are exempt from the annual gift limit. Specifically, travel payments are exempt from the gift limit if either of the following applies:
The travel is in connection with a speech given by the officeholder or official and the lodging and subsistence expenses are limited to the day immediately preceding, the day of, and the day immediately following the speech, and the travel is within the United States.
The travel is provided by a government, a governmental agency, a foreign government, a governmental authority, a bona fide public or private educational institution, a nonprofit organization that is exempt from taxation under Section 501(c)(3) of the Internal Revenue Code, or by a person domiciled outside the United States who substantially satisfies the requirements for tax-exempt status under Section 501(c)(3) of the Internal Revenue Code.
While these payments are not subject to the $440 annual gift limit, they are currently reportable on an official’s statement of economic interest.
Proposed Law:
Specifically, SB 21 does the following:
Requires a nonprofit organization that makes payments, advances, or reimbursements totaling more than $10,000 in a calendar year, or that total more than $5,000 in a calendar year for a single person, for travel by an elected state officer or local elected officeholder to disclose the names of the donors responsible for funding those payments, advances, or reimbursements.
Limits disclosure of donor names to those who donated $1,000 or more to the nonprofit organization in a calendar year and who knew or had reason to know that the donation would be used for travel by an elected state officer or local elected officeholder.
Provides that a donor knows or has reason to know that his or her donation will be used for such travel under any of the following conditions:
The donor directed the nonprofit organization to use the donation to make a payment, advance, or reimbursement for the travel.
The donor made the donation in response to a message or solicitation for donations for the stated purpose of making a payment, advance, or reimbursement for such travel.
The donor, or an agent, employee, or representative of the donor, accompanied an elected state officer or local elected officeholder for any portion of the travel.
Specifies that a nonprofit organization that makes payments, advances, or reimbursements for such travel is the source of the gift for reporting and other applicable purposes unless the nonprofit organization is acting as an intermediary or agent of the donor. If the nonprofit organization is acting as an intermediary or agent of the donor, the donor is the source of the gift for reporting and other applicable purposes including the $440 per year limit.
Requires that gifts that are travel payments, advances, or reimbursements disclosed on an official’s SEI must also include the travel destination.
Related Legislation:
This bill is identical to a portion of SB 831 (Hill) which was vetoed by the Governor last year. The provisions of SB 831 relating to campaign contribution prohibitions, and which was a concern addressed in the Governor’s veto message, is not contained in SB 21.
Staff Comments:
SB 21 is intended to increase transparency of donations made to public officials in connection with travel expenses.
This bill furthers the purpose of the Political Reform Act of 1974 and will require a 2/3 vote on the Senate Floor.
-- END --
SB 21 (Hill) Page 3 of 3
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
SB 21 (Hill) - Political Reform Act of 1974: gifts of travel
|
|
Version: December 1, 2014 |
Policy Vote: E. & C.A. 3 - 1 |
Urgency: No |
Mandate: Yes |
Hearing Date: April 20, 2015 |
Consultant: Maureen Ortiz |
This bill meets the criteria for referral to the Suspense File.
Bill Summary:
SB 21 requires nonprofit organizations that provide certain gifts of travel to elected state and local officials to disclose the names of donors responsible for funding the payments, as specified. Additionally, the bill requires elected officials that report gifts of travel payments on the Statement of Economic Interest to also include the travel destination.
Fiscal Impact:
Annual costs of $178,778 to the Fair Political Practices Commission (General Fund)
The above estimate includes the need for 1 Political Reform Consultant and ½ of an Attorney III position to create the new form and update related materials; promulgate regulations; handle advice requests; and provide public outreach and education.
Background:
Existing law prohibits specified elected officeholders and other public officials from receiving gifts, as defined, in excess of $440 in value from a single source in a calendar year. However, payments for the actual costs of travel that is reasonably related to a legislative or governmental purpose are exempt from the annual gift limit. Specifically, travel payments are exempt from the gift limit if either of the following applies:
The travel is in connection with a speech given by the officeholder or official and the lodging and subsistence expenses are limited to the day immediately preceding, the day of, and the day immediately following the speech, and the travel is within the United States.
The travel is provided by a government, a governmental agency, a foreign government, a governmental authority, a bona fide public or private educational institution, a nonprofit organization that is exempt from taxation under Section 501(c)(3) of the Internal Revenue Code, or by a person domiciled outside the United States who substantially satisfies the requirements for tax-exempt status under Section 501(c)(3) of the Internal Revenue Code.
While these payments are not subject to the $440 annual gift limit, they are currently reportable on an official’s statement of economic interest.
Proposed Law:
Specifically, SB 21 does the following:
Requires a nonprofit organization that makes payments, advances, or reimbursements totaling more than $10,000 in a calendar year, or that total more than $5,000 in a calendar year for a single person, for travel by an elected state officer or local elected officeholder to disclose the names of the donors responsible for funding those payments, advances, or reimbursements.
Limits disclosure of donor names to those who donated $1,000 or more to the nonprofit organization in a calendar year and who knew or had reason to know that the donation would be used for travel by an elected state officer or local elected officeholder.
Provides that a donor knows or has reason to know that his or her donation will be used for such travel under any of the following conditions:
The donor directed the nonprofit organization to use the donation to make a payment, advance, or reimbursement for the travel.
The donor made the donation in response to a message or solicitation for donations for the stated purpose of making a payment, advance, or reimbursement for such travel.
The donor, or an agent, employee, or representative of the donor, accompanied an elected state officer or local elected officeholder for any portion of the travel.
Specifies that a nonprofit organization that makes payments, advances, or reimbursements for such travel is the source of the gift for reporting and other applicable purposes unless the nonprofit organization is acting as an intermediary or agent of the donor. If the nonprofit organization is acting as an intermediary or agent of the donor, the donor is the source of the gift for reporting and other applicable purposes including the $440 per year limit.
Requires that gifts that are travel payments, advances, or reimbursements disclosed on an official’s SEI must also include the travel destination.
Related Legislation:
This bill is identical to a portion of SB 831 (Hill) which was vetoed by the Governor last year. The provisions of SB 831 relating to campaign contribution prohibitions, and which was a concern addressed in the Governor’s veto message, is not contained in SB 21.
Staff Comments:
SB 21 is intended to increase transparency of donations made to public officials in connection with travel expenses.
This bill furthers the purpose of the Political Reform Act of 1974 and will require a 2/3 vote on the Senate Floor.
-- END --
SB 21 (Hill) Page 4 of 4
SENATE COMMITTEE ON
ELECTIONS AND CONSTITUTIONAL AMENDMENTS
Senator Ben Allen, Chair
2015 - 2016 Regular
Bill No: SB 21 Hearing Date: 4/7/15
Author: |
Hill |
||
Version: |
12/1/14 |
|
|
Urgency: |
No |
Fiscal: |
Yes |
Consultant: |
Darren Chesin |
||
Subject: Political Reform Act of 1974: gifts of travel
DIGEST
This bill requires a nonprofit organization that pays for specified types of travel for elected officeholders to disclose the names of donors responsible for funding the travel. This bill requires an officeholder who receives a gift of a travel payment from any source to report the travel destination on his or her statement of economic interests (SEI).
ANALYSIS
Existing law:
Prohibits specified elected officeholders and other public officials from receiving gifts, as defined, in excess of $440 in value from a single source in a calendar year.
Exempts payments for the actual costs of specified types of travel from the annual gift limit. Specifically, payments for travel that is reasonably related to a legislative or governmental purpose, or to an issue of state, national, or international public policy are not subject to the gift limit if either of the following applies:
The travel is in connection with a speech given by the officeholder or official and the lodging and subsistence expenses are limited to the day immediately preceding, the day of, and the day immediately following the speech, and the travel is within the United States.
The travel is provided by a government, a governmental agency, a foreign government, a governmental authority, a bona fide public or private educational institution, a nonprofit organization that is exempt from taxation under Section 501(c)(3) of the Internal Revenue Code, or by a person domiciled outside the United States who substantially satisfies the requirements for tax-exempt status under Section 501(c)(3) of the Internal Revenue Code.
Requires candidates for, and current holders of, specified elected or appointed state and local offices and designated employees of state and local agencies to file periodic SEI rests disclosing their financial interests, including investments, real property interests, income, and gifts, including gifts of travel. SEI must include a description of the gift as well as the amount and the date on which the gift was received.
Pursuant to Fair Politicial Practices Commission (FPPC) regulations, a person who makes a gift to a public official is the source of the gift for reporting and other applicable purposes unless that person is acting as an intermediary. The person is acting as an intermediary for the source of the gift when the gift to the official was provided under any of the following conditions:
The person receives a payment from a source and the payment is made to the official after the source identifies the official as the intended recipient of the gift;
The person receives a payment from a source after soliciting the payment with the understanding that the payment will be used for the sole or primary purpose of making a gift to an official; or
The person receives a payment from a source after the payment was solicited by the official or the official's agent for the purpose of making a gift to the official.
This bill:
Provides that a nonprofit organization that makes payments, advances, or reimbursements that total more than $10,000 in a calendar year, or that total more than $5,000 in a calendar year for a single person, for travel by an elected state officer or local elected officeholder must disclose the names of the donors responsible for funding those payments, advances, or reimbursements.
Limits disclosure of donor names to those who donated $1,000 or more to the nonprofit organization in a calendar year and who knew or had reason to know that the donation would be used for travel by an elected state officer or local elected officeholder.
Provides that a donor knows or has reason to know that his or her donation will be used for such travel under any of the following conditions:
The donor directed the nonprofit organization to use the donation to make a payment, advance, or reimbursement for the travel.
The donor made the donation in response to a message or solicitation for donations for the stated purpose of making a payment, advance, or reimbursement for such travel.
The donor, or an agent, employee, or representative of the donor, accompanied an elected state officer or local elected officeholder for any portion of the travel.
Specifies that a nonprofit organization that makes payments, advances, or reimbursements for such travel is the source of the gift for reporting and other applicable purposes unless the nonprofit organization is acting as an intermediary or agent of the donor. If the nonprofit organization is acting as an intermediary or agent of the donor, the donor is the source of the gift for reporting and other applicable purposes including the $440 per year limit.
Requires that gifts that are travel payments, advances, or reimbursements disclosed on an official’s SEI must also include the travel destination.
BACKGROUND
Travel Payment Exceptions. As discussed above, some travel payments are not subject to the $440 gift limit but are reportable on an official’s statement of economic interests, e.g., certain travel in connection with a speech, panel or seminar and certain travel provided by specified nonprofit organizations.
While nonprofit organizations must submit some specified financial information to the United States Internal Revenue Service and make it publicly available, they are not generally required to publicly disclose the identity of their donors. Hence, nonprofit organizations that provide payments for foreign and domestic travel for California public officials are not required to publicly disclose this information either even when donations are solicited for those purposes provided they are not solicited for a specific recipient of the travel payment.
COMMENTS
According to the Author: Under current law, the public has no way of knowing who is paying for legislator travel or where they are going. Donors hide behind non-profits preventing the public from knowing who was behind the gift to the elected official. The public has a right to know where elected officials are traveling when the travel is paid for by special interests. The public also has a right to know which special interests are paying for the travel.
Examples of non-profits that fund legislator travel include: California Foundation on the Environment and the Economy, California Independent Voter Project, and the Pacific Policy Research Foundation. An analysis by the Sacramento Bee found that California lawmakers received more than $550,000 in travel-related expenses from outside organizations in 2013.
This bill is a reintroduction of a portion of SB 831 (Hill) from the 2014 legislative session, which was vetoed by the Governor. The Governor vetoed the measure because it contained many restrictions in addition to disclosure requirements. The restrictions in SB 831 included:
Prohibiting elected officials from contributing campaign funds to 501(c)(4) nonprofits owned or operated by their family members.
Prohibiting elected officials from asking people to donate to a 501(c)(4) nonprofit owned or operated by a family member.
Prohibiting elected officials from contributing campaign funds to 501(c)(4) nonprofits operated by another elected official on the same governing body.
Prohibiting the expenditure of campaign funds for an elected official’s mortgage, rent, utility bills, clothing, club memberships, vacations, tuition, vehicles, and gifts to family members.
SB 21 removes the prohibitions in last year’s SB 831 and only requires increased transparency for elected official travel.
In his veto meassage, the Governor
stated the following: “The activities that are addressed by this
bill are already subject to extensive regulation, including robust
disclosure requirements. The additional restrictions proposed by this
bill would add more complexity to the regulations governing elected
officials, without reducing undue influence.”
RELATED/PRIOR LEGISLATION
This bill is identical to portions of SB 831 (Hill) of 2014 which was vetoed by the Governor.
POSITIONS
Sponsor: Author
Support: None recieved
Oppose: None received
-- END –
Discussed in Hearing
2MIN
Senate Floor
1MIN
Assembly Floor
5MIN
Assembly Standing Committee on Elections and Redistricting
2MIN
Senate Floor
Bill Author
Bill Co-Author(s):