BILL ANALYSIS
By: Denny
Committee Report (Substituted)
BACKGROUND AND PURPOSE
Under current law, in their monthly reports, lobbyists are required to include all expenditures made in the previous month. Often, however, these expenditures are charged to credit cards, for which payment is not required until a statement is received. Occasionally other expenditures are made, and the total charge is not determinable until a bill is received. This occurs, for instance, where a lobbyist hosts a catered function, and the caterer charges for the actual number of guests in attendance. In addition, lobbyists often deliver gifts of food, such as holiday turkeys, to state officers. As the law is currently written, these are considered to be food, not gifts, which means that the lobbyist is required to be present when the food is consumed. The law should view these as gifts, not as providing food. CSHB 1508 gives lobbyists greater flexibility in reporting expenditures to accommodate these common practices.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
CSHB 1508 amends the Government Code by providing an exception to the prohibition on the acceptance of food or beverages from a registrant (registered lobbyist), unless the registered lobbyist is present at the event. The bill provides that an expenditure for food or beverage with a value of less than $50 is considered to be a reportable gift, if the item is intended as a gift for a member of the legislative or executive branch and is delivered by first-class United States mail or by common or contract carrier outside the Capitol Complex.
The bill clarifies provisions relating to expenditures that must be included in the required monthly report of a registered lobbyist's activities. The bill provides that an expenditure is not required to be included in the report for a month before the month, or for a calendar year before the year, in which the amount is readily determinable by the person making the expenditure.
The bill provides an exception to this provision, for expenditures that are of a character for which, under normal business practice, the amount is not disclosed until receipt of a periodic statement. For these expenditures, the bill provides that the expenditure must be included in the report for the reporting period in which the statement is received. For expenditures made by credit card, the bill provides that the amount must be included in the report for the period in which the expenditure is made or in the report for the period in which the person receives the credit card statement that includes the expenditure.
EFFECTIVE DATE
September 1, 2005.
COMPARISON OF ORIGINAL TO SUBSTITUTE
The substitute modifies the original by adding provisions relating to gifts of food.