Frequently Asked Questions: State Reporting of Gifts and Dues

About Gifts

Why must UC Davis report?
The UC is registered with the California Secretary of State as a lobbyist employer and is required to disclose state lobby-related activity and payments, which would include campus activity. The University's gift disclosure reports are due quarterly to the Fair Political Practices Commission (Cal. Gov't Code §86116). If you have any reportable activity, please complete the form and the UC Davis Office of Government and Community Relations will report the activity on behalf of UC Davis to the UC Office of the President which reports on behalf of the UC system.
Who can I contact with questions?
Email [email protected], call 530-752-9795, or reach out to Adrian Lopez or Loraine Hernandez-Covello
What is the reporting frequency?
Reporting is required on a calendar quarter basis. A call/reminder is emailed at the end of each calendar quarter. If you have something to report but do not receive the email/reminder, submit anyway. This requirement is not temporary.
Who is a Reportable Official?
Defined as the Governor, a candidate for Governor, a legislator, a legislative candidate, an employee of the Legislature (i.e., committee, district or Capitol staff), or the immediate family of the Governor, a legislator, a legislative candidate, or an employee of the Legislature. Agency employees are not included for UC reporting purposes.
Define Immediate Family Member
A member of such official or candidate immediate family i.e., spouse, registered domestic partner, and dependent children, does not include an adult brother/sister/father/mother of the official.
What constitutes a Gift?
Any payment of any amount that benefits a Reportable Official. The UC must report these benefits in the quarter in which the benefit was received.

A gift is any payment made by any person of anything of value, whether tangible or intangible, real or personal property, a good or service provided to an official that confers a personal benefit for which the official does not provide “full consideration” for the value received. (Gov’t. Code 82028.) Flowers, meals, beverages, tickets to sporting and entertainment events, travel, hotel stays, forgiveness of debt, and any discounts or rebates not available to the general public are all considered gifts. Gifts to an official’s immediate family members are presumed to be gifts to the official unless there is a working, social, or similar relationship between the donor and family member separate from the official.

There is no gift, if for example:
·        An official does not partake of the food or beverage, or receive any other item of value at the event. The exception to reporting meals or drinks as gifts is when the official attends a reception or other event where food and beverages are available. Known as the “drop-in” rule, FPPC Regulation 18946.2 exempts minimal consumption of food and beverages from the definition of a gift when an official simply drops by an event for a few minutes and does not stay for a meal or entertainment.

·        Informational materials provided to assist the official in the performance of his or her official duties, including admission to conferences or seminars and informational site visits and tours.

·        When making a speech, the admission to the event for the official, food, and minimal items (such as a pen, note pad, or similar item) provided to all attendees.
Which language should be included in all invitations to elected officials?
Lobbying entities must include the following notice in all written or printed invitations to events at which an elected state officer, a candidate for elective state office, a legislative official, or a state agency official will receive a reportable gift, including for receptions at which the official will drop-in. The notice must be printed in no less than 8-point type and in a color or print that contrasts with the background of the invitation and must state: Attendance at this event by a public official will constitute acceptance of a reportable gift.
Do we need to inform Legislative offices about why we are doing this?
No, they are already aware and tracking for their Form 700 reporting, so this process is familiar to them.
Who should we contact when inviting elected officials to UC Davis?
Please contact UC Davis Government and Community Relations about interactions with elected or appointed officials in advance of extending invitations. Contact information is at, https://gcr.ucdavis.edu/people.
Are there known exemptions?
Here are some examples of exemptions; however, circumstances vary. So don’t assume, instead reach out to Government and Community Relations and ask:

·       Informational material: books, videos, papers, which may include tours, but not travel to the tour site or food and beverages. Gov. Code section 82028(b)(1),

·       Tour is directly related to the performance of their legislative duties, sits on a Committee reasonably related to UC purposes. The inviting unit needs to keep records of agendas, attendee list, invoices/receipts, Fair Market Value calculations,

· Giving a speech, then swag and meals are exempt,

·       An official does not partake of the food or beverage, or receive any other item of value at the event. The exception to reporting meals or drinks as gifts is when the official attends a reception or other event where food and beverages are available. Known as the “drop-in” rule, FPPC Regulation 18946.2 exempts minimal consumption of food and beverages from the definition of a gift when an official simply drops by an event for a few minutes and does not stay for a meal or entertainment.
Do gifts to UC Regents count as reportable?
Gifts to a UC Regent do not count.
Are meals or refreshments served as part of a conference considered reportable gifts?
Meals and refreshments are reportable unless it is an informational session where the legislator spoke and the meals/refreshments were made available to all participants.
Can an official reimburse UC for gifts?
Yes. If an official receives gifts whose aggregate value exceeds the state gift limit, the law may require the state official to reimburse the campus or UCOP for the cost of the ticket, meal, or other benefit or else subject the official to state penalties.
Why does the Gift Notification Letter template use reimbursement information for UCOP/UC Regents and not the campus department?
The reason for the reimbursement to the UC Regents generally is that the state gift dollar cap is for the entire UC system and not on a per campus basis so when elected officials decide to send in a reimbursement, it will need to be accounted for centrally. Although reimbursement is rare, when it does happen, the elected official is often wanting to reimburse a total dollar amount to keep them under the cap and not reimbursing on a per gift basis. However, if an elected official sends their reimbursement to the centralized UCOP address as instructed and also specifically states that they are reimbursing for a particular gift, then UCOP will reach out to the respective campus Government and Community Relations (GCR) Office and that GCR office will work with the campus department to provide the correct recharge information for reimbursement. If for any reason the official sends reimbursement to the department, then GCR should be made aware so that UCOP is updated and tracking can be updated centrally.
If the Department sends out the Gift Notification Letter, why does Government and Community Relations need to know?
The fact that the letter was sent to the official is one of the required items being tracked centrally by UCOP. GCR will need to confirm that the letter was sent to the official when it sends UCOP the quarterly report of campus activity regardless of who mailed the letter.
How does one calculate the valuation for a public official's annual financial disclosures?

Example: 2024 Special event ticket through an external partnering organization in which UC Davis extended the invitation

Portion of the ticket earmarked for donation to the benefiting organization	# of Attendees (no staff)	Reduced Cost of admittance by this amount (earmarked donation divided by attendees)	Cost of admittance	Valuation for public official annual financial disclosures (cost of admittance minus the donation to the organization)
$20,000	850	$23.53	$300	$276.47 (provide this value to the public official for their reporting)

When are gifts to incoming elected officials reportable and hence outgoing officials not reportable?
New officials must report gifts starting the day of their swearing in. Officials who are termed out are formally no longer elected officials at midnight on the eve of the swearing in of the incoming official and must file a “leaving office” statement of economic interests (ie, a Form 700). Termed out officials are not reportable starting the following day (ie, when they’re no longer an elected official). However, if a gift is promised to an official before he/she leaves office, there might be reporting obligations.
An elected official attended a UC Davis event that would be considered a gift; however, was not invited by UC Davis nor was there any involvement in suggesting they be invited. Is this reportable?
Since “UC Davis did not make the suggestion or invite the official,” UCD did not exercise any direction or control over the ticket once in the possession of the host. Gov. Code 89503.5. Therefore, it was not a gift from UCD, and UCD has no reporting responsibilities.
A reportable official (staff to an elected official) serves on a UC Davis advisory board. Would any meals or “gifts” provided to them in their personal capacity as a board member be reportable if the meal/gift is provided to the entire board as part of their meeting?
Technically it does not fit within the definition of a gift. Since they are actually providing service in their role as an appointed advisory board member to a 501c3, it is evaluated under “income.” Gov. Code 82030. But then it is excluded under (b)(2) of that section because it is considered, “(2) . . . per diem received from a bona fide nonprofit entity exempt from taxation under Section 501(c)(3) of the Internal Revenue Code.” In contrast, if they did not have an appointment with the advisory board, it would be a gift.
Is there a dollar threshold for reporting?
Please report all amounts. The aggregate amount is for all of UC and not by campus. There is a $50 cumulative gift limit for the University as a whole (all 10 campuses and OP), which when triggered means we need to report every gift from UC regardless of amount. As such we should report all gifts no matter the cost because UC will undoubtedly hit the $50 limit for most if not all members.
Are the individual departments/event planners responsible for reporting?
Individual units are responsible for reporting using the State Gifts and Dues Reporting form. And the Government and Community Relations will send one report on behalf of UCD to UCOP.
What about duplication? How will I know if something has already been reported?
If in doubt, report it. Or inquire with Government and Community Relations (GCR). There is no risk of duplication since GCR will screen/review all submissions prior to sending the UCD report to UCOP.
How will the required verbiage that must be included in invitations to officials be provided to individuals who need to report?
The verbiage to use is provided to Deans and Vice Chancellors via a communication from the Chancellor’s Chief of Staff and is included in the quarterly reminder and also in the information section of the electronic reporting system State Gifts and Dues Reporting form.
How are the reporting mechanism and instructions shared out?
The Chancellor’s Chief of Staff sends out a quarterly email to Deans and Vice Chancellors asking them to share broadly with management teams, including CAO’s, Business and Finance Directors. All UC Davis employees can access the reporting system with their Kerberos. Instructions and information are located within the State Gifts and Dues Reporting form.
Who ensures the required verbiage appears on the invitations?
As standard practice, units sending invitations to elected officials should include the text if there will be a meal or gift of any kind that will not provided to the public.

About Institutional Dues Payments

DUES FLOW CHART

Did you request, initiate or process a payment for an institutional membership during the reportable quarter?
Yes	Not Sure	No
Proceed to next question.	Contact GCR	Don't Report
Did that organization make expenditures equal to 10 percent of its total expenditures, or fifteen thousand dollars ($15,000) or more, during any calendar quarter, to influence legislative or administrative action (lobbyists)?
Yes	Not Sure	No
Report the payment for that quarter using the State Gifts and Dues Reporting form If you aren’t sure who should report the dues, please coordinate within your unit to decide. However, if you cannot coordinate, submit your information regardless. There is no risk of duplication since GCR will review all submissions prior to sending the UCD report to UCOP.	Look on the SOS website to see how much the entity reports for lobbying. https://cal-access.sos.ca.gov/Lobbying/Firms/ Note: organization names in SOS may vary. Look at the membership agreement, if there is nothing that states that dues will not be used for lobbying, then report.	Don't Report
Still not sure?
Contact GCR for assistance in researching the organization, [email protected] or [email protected]

Which Institutional Dues Payments need to be reported?
Any institutional dues or similar payments made by the campus to an outside organization that makes state lobby-related expenditures equal to 10% of its total expenditures or to an organization that expends $15,000 or more in a calendar quarter to engage in state lobby. No reporting is necessary if the campus restricts the use of the dues to no-lobbying activity.

Visit the CA Secretary of State site to search if an organization makes lobby-related expenditures (Financial Activity/Filing History): https://cal-access.sos.ca.gov/Lobbying/Employers/
What is the reporting frequency?
Reporting is required on a calendar quarter basis. A call/reminder is emailed at the end of each calendar quarter. If you have something to report but do not receive the email/reminder, submit anyway. This requirement is not temporary.
Can one search if an organization makes lobby-related expenditures?
Yes. Visit the CA Secretary of State site to search if an organization makes lobby-related expenditures (Financial Activity/Filing History): https://cal-access.sos.ca.gov/Lobbying/Employers/
Are membership dues for individuals reported?
Membership dues for individuals do not need to be reported. Please report only institutional memberships.
What is the threshold amount for reporting dues to an organization?
The trigger for reporting is “payment of dues or similar payments made to any organization, including a federation, confederation, or trade, labor, or membership organization, that makes expenditures equal to 10 percent of its total expenditures, or fifteen thousand dollars ($15,000) or more, during any calendar quarter, to influence legislative or administrative action.” Regulation 18615. (unless there is something in the membership agreement that states that UC dues will not be used for lobbying. If no such restriction, then the UC dues to them should be reportable.)

An easy way of checking for the threshold is to look on the SOS website to see how much the entities report for lobbying (not the PAC reports). Also, in the membership agreements, if there is nothing that states that UC dues will not be used for lobbying, then the UC dues to them should be reportable. The SOS site seems to be the quickest option: https://cal-access.sos.ca.gov/Lobbying/Firms/. Be mindful that organization names in SOS may vary (search acronyms as well as the full name)

Note: due payments are reported for the quarter in which they were made. If no payment was made during the specified quarter, then no reporting is needed.
How much investigation is required to determine the reportable portion of UC’s Re: “membership and dues” paid to organizations for lobbying?
A good faith effort is required. Given your experience on educational matters in the Legislature, what coalitions or associations lobby the Legislature? Does the UC pay dues to such organization? For example, NCAA comes to mind.
Is the $15,000 amount for STATE lobbying/advocacy activities or ANY lobbying/advocacy activities (local, state, and federal)?
It is only for State.
Will UCOP report dues, like CHA, that are paid centrally? Or do we need to report the recharge since UCDH budget monies are being used?
Recharges paid to UCOP for paying dues centrally, like CHA, do not need to be reported by the campus. UCOP will report.
Is PAC the same as Lobbying?
Don’t confuse the PAC issue with the lobbying issue, the lobbying reporting is focused on dues being used to pay for lobbyists. If the UC does not pay into a PAC but pays dues to a parent organization and the parent uses the money to pay a state lobbyist, then the UC may have reporting duties.
If the organization/dues forms state that the UC dues are not being used for lobbying state officials, does UC need to report the dues?
No
Who reports these membership dues payments?
The employee’s title is not the focus. The person is determined by the unit making the expenditure. Report the dues in the electronic form and a comprehensive UCD report will be shared with UCOP. Government and Community Relations (GCR) reviews the reported submissions and will seek further information from units if needed prior to submitting them to UCOP. UCOP will review and provide guidance to GCR if any items reported don’t make sense.
What about duplication? How will I know if something has already been reported?
If in doubt, report it, or inquire with Government and Community Relations. There is no risk of duplication since GCR will review all submissions prior to sending the UCD report to UCOP.