Bill Text: CA SB1422 | 2023-2024 | Regular Session | Amended
Bill Title: Disclosures: Travel DISCLOSE Act.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-05-16 - May 16 hearing: Held in committee and under submission. [SB1422 Detail]
Download: California-2023-SB1422-Amended.html
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Amended
IN
Senate
April 09, 2024 |
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Amended
IN
Senate
March 20, 2024 |
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Senate Bill
No. 1422
| Introduced by Senator Allen |
February 16, 2024 |
An act to amend Section 89506 of the Government Code, relating to the Political Reform Act of 1974.
LEGISLATIVE COUNSEL'S DIGEST
SB 1422, as amended, Allen.
Disclosures: Travel DISCLOSE Act.
Under existing law, a nonprofit organization that regularly organizes and hosts travel for elected officials and spends more than $10,000 in a calendar year, or 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 to the Fair Political Practices Commission the names of donors who, in the preceding year, donated more than $1,000 to the nonprofit organization and accompanied an elected state officer or local elected officeholder for any portion of the travel, as specified. Under existing law, this requirement applies only if the sum of the organization’s expenses relating to travel, study tours, or conferences, conventions, and meetings, was greater than one-third of the organization’s total expenses, as specified.
This bill would instead require any person
that regularly organizes and hosts travel for elected officials and spends more than $10,000 in a calendar year, or more than $5,000 in a calendar year for a single person, for travel by an elected state officer or local elected officeholder, to file certain disclosures with the commission. A violation of the Political Reform Act of 1974 is punishable as a misdemeanor. By creating a new 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 act’s purposes upon a 2/3 vote of each house of the Legislature and compliance with specified procedural requirements.
This bill would declare that it furthers the purposes of the act.
Digest Key
Vote: 2/3 Appropriation: NO Fiscal Committee: YES Local Program: YESBill Text
The people of the State of California do enact as follows:
SECTION 1.
This act shall be known, and may be cited, as the Travel DISCLOSE Act.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 recipient’s 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 governmental 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 person, other than a government, a governmental agency, a foreign government, a governmental
authority, or a bona fide public or private educational institution of collegiate grade, as defined in Section 203 of the Revenue and Taxation Code, 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, at a time specified by Commission regulations, all of the following information with respect to that calendar year:
(A) (i) The name of each donor, and the cumulative value of each of those donors’ donations, to the person
donor who donated one thousand dollars ($1,000) or more to the organization person in the calendar year. This disclosure requirement only applies to donors 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).
(ii) For each donor described
in clause (i), the cumulative total of their donations to the person in the calendar year.
(ii)
(iii) A donor knows or has reason to know that their donation will be used in the manner described in clause (i) if any of the following conditions applies:
(I) The donor directed the person 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).
(II) 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).
(III) 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).
(B) Each travel event for which the person made payments, advances, or reimbursements for travel of one or more elected state officer or local elected officers as described in subdivision (a). For each travel event, the person shall disclose:
(i) The
travel destination or destinations.
(ii) The dates of the travel event.
(iii) The names of the elected state officers or local elected officers for whom the person made payments, advances, or reimbursements for travel relating to the event.
(iv) The names of any donors described in subparagraph (A) for which 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 event.
(2) This subdivision does not preclude a finding that a nonprofit organization
person is acting as an intermediary or agent of the donor. If the nonprofit organization person is acting as an intermediary or agent of the donor, all of the following apply:
(A) The donor to the nonprofit organization person 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.
(3)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.
