FAQ on Lobbying, Gift Limits, Reporting, Etc.

I. GIFT LIMITS:

The annual gift limit for state officials has increased to $470.00 for the 2017-2018 session. Gifts by lobbyists, lobbying firms and lobbyist employers to the official’s spouse and dependent children are considered gifts to the official.

The gift limit for registered lobbyists and lobbying firms is still $10.00 per month per official.

A gift is defined in California Government Codes Section 82028 as:

"...any payment to the extent that consideration of equal or greater value is not received and includes a rebate or discount in the price of anything of value unless the rebate or discount is made in the regular course of business to members of the public without regard to official status."

Gifts may include, but are not limited to, such items as meals, beverages, tips, lodging, transportation, discounts, admission tickets or books.

II. DEFINITION OF LOBBYIST: NEW

An employee of a lobbyist employer is not a lobbyist if they engage in direct communication with an official for their employer as long as they are in the company of a registered lobbyist retained by their employer AND the employee is a "subject matter expert" regarding the issues being discussed.

III. LOBBYIST HOME FUNDRAISERS:

The definition of "contribution" was amended to prohibit a lobbyist from holding a fundraiser in his or her home for a candidate seeking election to a governmental agency that the lobbyist is registered to lobby. The same prohibition applies to lobbying firms holding fundraisers at their offices.

IIII. LOBBYIST HOME HOSPITALITY:

Hospitality provided by a lobbyist is a gift unless the home hospitality is related to another purpose unconnected with the lobbyist’s professional activities. Generally, this means functions like children’s birthday parties, soccer team parties, neighborhood barbeques, etc., where other guests attend who are not part of the lobbying process.

V. REPORTABLE PAYMENTS NOT SUBJECT TO LIMITS:

Payments made for travel in connection with an event at which an official gives a speech, participates in a panel or seminar or provides a similar service are not prohibited or subject to the $470 gift limit, but are reportable gifts.Lodging and subsistence expenses in this case are limited to the day immediately preceding, the day of and the day immediately following the speech, panel or similar service.

VI. OTHER PAYAMENTS TO INFLUENCE: NEW

Effective July 1, 2016, lobbyist employers are required to file a Form 640 as an attachment to their 635 itemizing "other payments to influence" that exceed $2,500 during the quarter.

VII. CONTRIBUTION PROHIBITION:

Proposition 34 prohibits a registered lobbyist from making contributions to candidates or officeholders if the lobbyist is registered to lobby that agency. This includes contributions to Political Action Committees that make contributions to those same candidates or officeholders.

VIII. REGISTRATION:

Initial registrations and amendments to your registration must be paper filed AND electronically filed.

If a lobbying firm is adding a new lobbyist employer/lobbying coalition, an amendment to registration must be filed prior to attempting to influence legislative or administrative action on behalf of the new client.

IX. HONORARIA PROHIBITION:

The following public officials are prohibited from accepting any honoraria:

(1) state and local elected officers, (2)candidates for local elected offices or for governing boards of special districts, (3) members of governing boards of special districts, and (4) designated employees of state and local government agencies. Candidates for state elected offices will also be subject to the gift limit, but not the honoraria ban.

X. INVITATION REQUIREMENTS:

A gift notification statement must be included with written or printed invitations to events at which an elected state official, a candidate for elective state office, a legislative official, or a state agency official will receive a gift or gifts totaling $50.00 or more. The invitation sent by a lobbyist, lobbyist employer or lobbying firm, to state officials, must include the following statement:

"Attendance at this event by a public official will constitute acceptance of a reportable gift."

The statement must be "at least as large and readable as 8-point Roman boldface type, in a color or print that contrasts with the background so as to be easily legible."

XI. REPORTING GIFTS TO STATE OFFICIALS:

All lobbyists, lobbying firms, and lobbyist employers that make gifts to state officials aggregating $50.00 or more in a calendar year must provide those officials, in writing, with the date and amount of each gift, as well as a description of the goods or services provided. Failure to provide this information to the state official could result in administrative penalties.

The information must be provided to the state official within 30 days following the end of the calendar quarter in which the gift was provided. A letter including all necessary information or a copy of the activity expense section of your quarterly lobbying disclosure report will be sufficient.

XII. GIFT REIMBURSEMENTS:

If a public official reimburses a lobbyist, lobbying firm or lobbyist employer for the value of a gift within 30 days of receipt, the gift has no value and need not be disclosed by any filer. If the reimbursement is received after 30 days, the full amount of the gift must be disclosed.

XIII. LOBBYIST ORIENTATION COURSES:

During each biennial legislative session, individuals who qualify as lobbyists under the Act are required to attend an orientation course on the relevant ethical issues and laws relating to lobbying. The courses are conducted by the Senate Committee on Legislative Ethics (916/324-6929).

XIIII. TWO-YEAR CUMULATION:

Quarterly reports filed by lobbying firms, lobbyist employers and lobbying coalitions must reflect cumulative totals for the entire legislative session (2017-2018).