Political Reform Act

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A no-gifts policy:

• Can avoid the appearance that improper considerations influenced official decisions;
• Simplifies annual reporting and compliance with ethics laws; and
• Avoids the awkwardness of having to reject a gift if potential gift-givers are made aware of no-gifts policies.

For additional resources on either an agency or personal no-gifts policy, please see www.ca-ilg.org/giftssamplelanguage.

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The core concept underlying the notion of a gift is that it is something someone gives another for nothing in return. Consequently, if you pay for what you received or otherwise exchange goods or provide services of equal or greater value for it, it does not fit within the definition of a gift.

Here are the questions to ask yourself to determine whether or not you are in gift territory:Read more »

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Public officials who make governmental decisions that could affect their personal financial interests must annually disclose certain personal investments, interests in real property, sources of income, gifts, loans and business positions on the Statement of Economic Interests (FPPC Form 700).Read more »

Question 4: What Kind of Gift Is It and Do Special Rules Apply as a Result?

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The basic rules of thumb are:

• Gifts from family members (as defined in the Fair Political Practices Commission regulations) are OK and not subject to gift limit and reporting requirements, as long as the family member is not acting as an intermediary for someone else who the true source of the gift; and
• Gifts you exchange with friends on birthdays, holidays and similar occasions are OK and not subject to gift limit and reporting requirements, as long as the gifts are of approximately equal value.

All other gifts, gestures, gratuities and discounts are subject to fairly complex rules. In crafting these rules, the Fair Political Practices Commission (FPPC) is working to address situations in which gifts are efforts to influence or curry political favor with the recipient or are capable of creating that perception.

It’s important to keep in mind that even if these special rules mean that a gift is not, for example, subject to the gift limit, accepting it may obligate the official to step aside from any decision-making process that involves the gift-giver. The FPPC reminded a finance official of this fact when it gave advice about accepting a scholarship that included travel expenses for a California Municipal Treasurers Association conference. In that instance, the finance official accepted the scholarship. Although the travel expenses were not subject to the gift limit, the travel was nevertheless a gift. The FPPC advised the official to be alert and get additional advice should a situation arise in which the official would be making a decision that would affect CMTA to make sure the official stayed on the right side of the rules (an example might be the decision to pay CMTA dues).Read more »

How Does One Determine the Value of a Gift for Reporting Purposes?

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The general rule is that one must report the fair market value of the gift. For example, if someone buys you dinner, you should report your portion of the tab (which may include the amount spent on your spouse, partner or guest; parking; tip, etc.).

Some other rules relating to valuing gifts:Read more »