1. What is the gift limit for 2010?

$ 420: Gifts from any other single source may not exceed $420 in a calendar year. For officials and employees who file Statements of Economic Interests (Form 700) under an agency’s conflict of interest code (“designated employees”), this limit applies only if the official or employee would be required to report income or gifts from that source on the Form 700, as outlined in the
“disclosure category” portion of the agency’s conflict-of-interest code.
$10: State agency officials, including legislators, legislative staff and state commission members, may not accept gifts aggregating more than $10 in a calendar month from a single lobbyist or lobbying firm if the lobbyist or firm is registered to lobby the official’s or employee’s agency.

2. In March a vendor that provides goods to an agency had its contract renewed by the city council. Within 12 months, the vendor offered entertainment tickets to the spouse of one of the city council members. Does the city council member report the tickets as gifts?

Yes. effective February 10, 2010, there is a presumption that such gifts provided to the spouse of a local government agency official who is listed in Government Code Section 87200 (e.g. planning commissioners, city council members, board of supervisors) are gifts to the official. An exception to this rule applies when there is an established working, social, or similar relationship between the  donor/vendor and the official’s family member, independent of the relationship between the donor/vendor and the official.

3. Co-workers exchange gifts of similar value on birthdays. Are these items reportable?

No. Such gift exchanges with individuals, other than lobbyists, are not reportable or subject to gift limits. The gifts exchanged must be similar in value.

4. How does an individual return a gift so that it is not reportable?

Unused gifts that are returned to the donor or reimbursed within 30 days of receipt are not reportable.You may also donate the unused item to a charity or governmental agency within 30 days of receipt or acceptance as long as the donation is not claimed as a tax deduction.

5. An agency received two free tickets to a sporting event from a local vendor. The tickets were used by the Director of Transportation and his child. Each ticket was valued at $50. How are these reported?

The tickets are reportable in the amount of $100 on the Director’s Form 700, Statement of Economic Interests, if the vendor is a reportable source. OR
If the agency has a written ticket policy posted on its website, the policy is followed and both the vendor and the director’s name are identified on a Form 802 and posted on the agency’s website, the director would not report the tickets on his/her Form 700. An agency’s policy must state the public purpose for ticket distribution.

6. An elected official entered a drawing that was open to the general public and won a prize worth more than $420. May the prize be accepted?

If the prize is received in connection with a bona fide competition, it may be reportable as income. In order for the event to be a bona fide competition, the drawing should not be related to an official’s status as an officeholder, it must include a large pool of contestants and be widely advertised. Individuals should contact the FPPC for specific guidance.

7. Are frequent flyer miles reportable?

No. Free tickets received under an airline's frequent flyer program that are available to all members of the public are not required to be disclosed.

8. An agency received a large box of chocolates as a holiday gift from a local merchant. It was addressed to the agency and not to a particular employee. Is there a reporting requirement?

Generally, the receipt of food and beverages is considered a gift. However, in this instance, the gift would only be reportable by an employee if 1) the vendor was a reportable source on the individual’s Form 700 and 2) the employee consumed candy valued $50 or more.

9. During the year, an official received several gifts of meals from the same reportable source. Each meal was approximately $35. Is the source reportable?

Yes. Gifts from the same source are aggregated, so you must disclose the source when the total value of all meals exceeds $50 or more.

10. May an elected official, accept travel, lodging and subsistence from a Japanese sister city, while representing the official’s home city?

Travel and related lodging and subsistence from the Japanese government that is reasonably related to a legislative or governmental purpose is not subject to the gift limit. However, the payments must be disclosed on a Form 700, Statement of Economic Interests. While in Japan, any personal excursions, which are not paid for by the elected official or paid for by the host government and are not related to a legislative or governmental purpose, must also be disclosed and are subject to the gift limit.

• FPPC 2009/2010 Top Ten Gift Questions