Lobbying Disclosure Information Manual - Fair Political Practices ...

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Chapter 4 — Gifts and Other Activity Expenses lobbyist employer, since Geneva is a lobbyist, she may not arrange the luncheon meeting if the legislative staff members will receive a gift of more than $10 (i.e., if the lunch will cost more than $10 each). If the gift to the legislative staff members will be $10 or less and Geneva arranges for the meeting, the amount of the gift each legislative staff member receives must be reported by Geneva on her Form 615. Kempler Hospital is a lobbyist employer. Janice Duke is a surgeon employed by Kempler Hospital and is the spouse of the Director of Health Services, a state agency the hospital lobbies. Kempler Hospital must report Janice’s salary as an activity expense. Definition of Gift Gifts are the most commonly reported activity expense. The Act defines a gift as any “payment” (which may be money or anything else of value, such as goods or services) that provides a personal benefit to the recipient for which consideration of equal or greater value is not received by the donor. The term “gift” includes, but is not limited to, payments made for food, beverages, and travel. Exceptions to the term “gift” are provided in Commission regulation 18942 which is contained in Appendix 1, under “Exceptions to Gift and Exceptions to Gift Limits.” Gift Limits Lobbyists and lobbying firms may not make, or act as an agent or an intermediary in the making of a gift, or arrange for the making of a gift in excess of $10 in a calendar month. This limit applies to any payment made directly or indirectly to any state candidate, elected state officer, legislative official, or to an official of any state agency required to be listed on the registration statement of a lobbying firm or a lobbyist employer/lobbying coalition. In addition, lobbyists and lobbying firms are prohibited from making any payment toward a gift to state officials listed above if the value of the gift is more than $10, even if the gift has multiple donors. Gifts made directly to members of an official’s immediate family are not subject to the gift limits unless the family member is also a public official described above, but are subject to disclosure on quarterly reports. In addition, state agency officials may not receive gifts aggregating more than $360 per calendar year from most other sources, including all lobbyist employers/lobbying coalitions and $5,000 filers. QuickTIP The $360 gift limitation is revised each odd-numbered year based on changes in the Consumer Price Index. It was last revised January 1, 2005. The $10 gift limit restricting gifts from lobbyists and lobbying firms is not revised. Arranging a Gift Lobbyists and lobbying firms are prohibited from making or “arranging” a gift of more than $10 in a calendar month to any state candidate, elected state officer, legislative official, or to an official of any state agency required to be listed on the registration statement of a lobbying firm or lobbyist employer/lobbying coalition. It is not necessary for a lobbyist or lobbying firm to actually pay for or incur an expense to meet the definition of “arranging” a gift. A lobbyist or lobbying firm “arranges for the making of a gift” if the lobbyist or lobbying firm, either directly or through an agent, does any of the following: • Delivers a gift to the recipient; • Invites or sends an invitation to an intended recipient regarding the occasion of a gift; • Solicits responses from an intended recipient concerning his or her attendance or non-attendance at the occasion of a gift; Fair Political Practices Commission 4-2 Lobbying Manual, 7/2005
• Acts as an intermediary in connection with the reimbursement of a recipient’s expenses; or • Acts as an intermediary in connection with the reimbursement of a recipient’s expenses. Examples Lobbyist Dan Martinez invites a legislator to lunch. After the lunch has been arranged, Dan invites lobbyist Shirley Than to attend. Dan pays the entire cost of the lunch. Shirley is not required to report the luncheon because she did not pay for or “arrange” the gift. On his Form 615, Dan must report the entire cost of the lunch, provide the legislator’s name, and the amount that was attributable to the legislator. Together, Dan and Shirley invite a legislator’s aide to lunch. The lobbyists share the cost of the lunch. They must both report the activity. In addition to reporting the amount they each paid, each lobbyist must report the total value of the aide’s meal, indicate that the amount paid was a portion of the total cost, and report the total cost. A lobbying firm’s client hosts a reception for some legislators and their staff. The lobbying firm is the contact for the legislative officials, and the officials call the lobbying firm to RSVP. Although the lobbying firm does not make any of the payments in connection with the reception, the lobbying firm must report the event as an activity expense because the firm’s activities come within the definition of “arranging a gift.” If the client is a lobbyist employer, it must also report the activity expense. Adrianne Kent is an employee of a law firm. The law firm is also a lobbying firm, although Adrianne is not a lobbyist. Adrianne is going to take a legislative staff member to lunch and charge it to the law firm’s credit account. Even though Adrianne is not a lobbyist, the law firm must report the lunch as an activity expense. Chapter 4 — Gifts and Other Activity Expenses QuickTIP In each of the previous examples, the benefit provided to the legislative officials may not exceed $10 in value. Example The California Insurance Coalition, a lobbyist employer, held its annual convention in South Lake Tahoe. Staff of the Coalition invited legislative officials and directed and controlled the event’s preparations. The Coalition’s lobbyist did not solicit responses to the event or direct or control any payment in connection with the event. The lobbyist may attend the event as long as an officer, manager, or executive of the Coalition is also present. The lobbyist is not required to report activity expenses in connection with the event on his or her Form 615. The activity expenses are reported on the Coalition’s Form 635. The amount benefiting each legislative official is subject to the $360 annual gift limit. Source of a Gift Generally, a person is the source of a gift if the person makes a gift to a reportable person and is not acting as an intermediary. Determining the source of a gift is based on the specific facts of each event. If you need assistance to determine the source of a gift, contact the Technical Assistance Division prior to the event. Also, guidance for determining the source of a gift may be found in regulation 18945, Appendix 1, under “Gift, Source.” Examples The Association of Consultants, a lobbyist employer, is holding a reception to entertain the California Legislature, legislative staff, and other public officials. The Association directs and controls the event’s preparations, including determining the guest list, and planning the reception and entertainment. Although other business entities have been solicited to help fund the event, the contributing entities are not involved in any of the reception’s Fair Political Practices Commission 4-3 Lobbying Manual, 7/2005
Page 1 and 2: Lobbying Disclosure Information Man
Page 3 and 4: Introduction California’s Politic
Page 5 and 6: Chapter 1 Who Must File This chapte
Page 7 and 8: Generally, a lobbyist is categorize
Page 9 and 10: -- The individual is a lobbyist com
Page 11 and 12: companies will qualify as a “$5,0
Page 13 and 14: Statutory and Regulatory References
Page 15 and 16: Chapter 2 — Where and When to Fil
Page 17 and 18: Chapter 2 — Where and When to Fil
Page 19 and 20: Chapter 3 Registration and Terminat
Page 21 and 22: Filing Deadlines: New Lobbyist: •
Page 23 and 24: How to Complete Form 601 The Lobbyi
Page 25 and 26: Lobbyist Employer and Lobbying Coal
Page 27 and 28: Lobbyist Employer Deleting a Lobbyi
Page 29 and 30: Chapter 3 — Registration and Term
Page 31: Chapter 4 Gifts and Other Activity
Page 35 and 36: • Designated employees of state a
Page 37 and 38: Personalized Plaques and Trophies V
Page 39 and 40: • If the guest of an official sta
Page 41 and 42: attend a training program. Because
Page 43 and 44: 18946.2 Reporting and Valuation of
Page 45 and 46: Chapter 5 — Quarterly Disclosure
Page 59 and 60: Chapter 6 Recordkeeping A recordkee
Page 61 and 62: • The amount of the contribution;
Page 63 and 64: − Payments to a law firm for draf
Page 65 and 66: Audits Lobbying firms and lobbyist
Page 67 and 68: Chapter 7 — Restrictions • Dana
Page 69 and 70: Chapter 7 — Restrictions professi
Page 71 and 72: Chapter 7 — Restrictions 85303 85
Page 73 and 74: Appendix 1 — Definitions inquirie
Page 75 and 76: Appendix 1 — Definitions Gift (Se
Page 77 and 78: Appendix 1 — Definitions institut
Page 79 and 80: Appendix 1 — Definitions lobbyist
Page 81 and 82: Appendix 1 — Definitions elected
Page 83 and 84:
Appendix 2 About the Political Refo
Page 85:
Cal-Online Help Desk (Electronic Fi
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