California Code of Regulations › Title 2 - Administration › Division 6 - Fair Political Practices Commission › Chapter 9.5 - Ethics › Section 18940 - Guide to the Gift Regulations

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Basic Rule. A gift is a payment made by
				any person of any thing of value, whether tangible or intangible, real or
				personal property, a good or service that provides a personal benefit to an
				official when the official does not provide full consideration for the value of
				the benefit received. A gift includes the forgiveness of a debt or obligation
				and a rebate or a discount in the price of anything of value unless the rebate
				or discount is offered in the ordinary course of business without regard to
				official status. (See Sections
				82028,
				82044, and
				82047.) A gift may be reportable by
				the official under Sections
				87200,
				87202,
				87203,
				87204,
				87207,
				87300, or
				87302; subject to limits under
				Sections 89503 and
				86203 and Regulation 18940.2;
				result in a disqualifying conflict of interest for the official under Sections
				87100 and
				87103 and Regulation 18702.4;
				and/or require the filing of an activity expense report by a lobbyist, lobbying
				firm, or lobbyist employer, or person who directly or indirectly makes payments
				to influence legislative or administrative action of $5,000 or more in any
				calendar quarter as defined in Section
				86111.
(b) Exceptions. Certain payments that
				otherwise meet the Act's definition of gift, are excepted from the definition
				of gift as provided by statute and these regulations. (See Section
				82028(b) and
				Regulation 18942.) These payments are neither a gift nor income. Certain
				payments that do not meet the Act's definition of gift may be considered
				income.
(c) Valuation. Generally,
				the value of a gift is determined by its fair market value. (Regulation 18946,
				exceptions are provided in Regulations 18946.1 through 18946.5.) An official
				must report gifts received from a source subject to disclosure if the
				cumulative value is $50 or more within a reporting period. (Section
				87207(a)(1).) With
				certain exceptions (See Wedding Gifts, Regulation 18946.3; Travel Payments,
				Section 89506) if a gift is reportable
				under the Act, it is prohibited if the value is
more than
the
				amount specified in the gift limits identified in Regulation 18940.2 (Section
				89503(c) or
				Section 86203.) Whether or not a gift is
				reportable, if an official receives any gift(s) from one source with a
				cumulative value that meets the amount specified in Regulation 18940.2 within
				12 months before the making or participating in the making of a governmental
				decision, the official has an economic interest in that source pursuant to
				Regulation 18700, and the official may have a conflict of interest with respect
				to that source under the Act's conflict of interest provisions (Sections
				87100,
				87103(e).)
(d) Disclosure. For officials required to
				disclose under Sections
				87200,
				87202,
				87204, or
				87207 of the Act ("statutory
				filers"), any gift, or combination of gifts, received from any source is
				reportable by the official if the value of the gift, or the cumulative value of
				multiple gifts, received from the source in the reporting period is $50 or
				more. For officials required to disclose under an agency conflict of interest
				code ("code filers") the gift, or combination of gifts valued at $50 or more is
				only reportable by the official if received from a source identified in the
				disclosure category under which the official files pursuant to the official's
				agency conflict of interest code. For those making gifts required to be
				disclosed under Section
				86113 (Lobbyists), 86114 (Lobbying
				Firms), and 86116 (Lobbyist Employers), and $5,000 filers, any gift, or
				combination of gifts, of any amount must be disclosed by the donor to the
				extent required under Section
				86111.
(1) Travel Payments, Advances, or
				Reimbursements: Travel Destination Disclosure. With respect to a gift that is a
				travel payment, advance, or reimbursement, a person required to file a
				statement of economic interests must disclose the travel destination on the
				person's statement of economic interests as required by Section
				87207(a)(4).
(2) Nonprofit Travel Payments, Advances, or
				Reimbursements: Donor Disclosure. A 501(c)(3) or 501(c)(4) nonprofit
				organization that regularly organizes and hosts travel for elected officials
				and makes travel payments, advances, or reimbursements, as specified in Section
				89506(f), must
				disclose the names of donors that meet the criteria set forth in that Section
				to the Commission by April 30 of the following year on a form provided by the
				Commission.