New Gift Rules to Public Officials

The Fair Political Practices Commission (FPPC) has completed its re-write of the rules regulating gifts to public officials.  These take effect on January 1, 2012.

Generally, state and local officials may not accept over $420 per year in gifts from the same source.  In addition, an official must report, on annual disclosure forms, any gifts with a value of $50 or more from the same source.  Lobbyists may not give gifts greater than $10 in any month to an official of any agency where the lobbyist is registered.

Here are some of the changes for 2012:

Air Travel:Valuation of air transportation on private aircraft will be determined by dividing the cost b the number of passengers on board, regardless of their status as officials.

Ceremonial Role:  Tickets to events where the official performs a "ceremonial role" is not subject to the gift limit or required to be reported.  The new regulation defines ceremonial role and provides specific examples, such as a ribbon cutting or throwing out the first pitch at a baseball game.

Home Hospitality:  You may host your neighbor, the mayor, for dinner, and the dinner is not considered a gift if you have a relationship, connection, or association unrelated to the her/his official position, and the hospitality is provided as part of that non-official relationship.

Valuation of Attendance at Non-Profit and Political Fundraising Events: Public officials may receive two tickets to 501(c)(3) or political fundraisers (if provided by the 501(c)(3) or political committee) without triggering either the gift limit or reporting.  Tickets by a third party source, as well as tickets benefiting other types of non-profits, such as 501(c)(4)s, are gifts and are valued according to the official's pro-rata share of food and entertainment or the non-deductible portion of the ticket.

These are the highlights.  There are other changes as well.  Should you have any questions about this, or other new regulations or statues, contact us.