Brief ⁽¹⁾

Sub. for HB 2489 amends the state ethics laws governing state officers, employees, and lobbyists and amends the Campaign Finance Act.

The substitute bill repeals KSA 46-237a which prohibits officers and employees of the Executive Branch from accepting any gift, entertainment, or hospitality, regardless of value, with limited exceptions. The substitute bill would place them under the same restrictions that apply to state officers and employees of the Legislature. The substitute bill allows all state agency heads to impose stricter limitations on state officers and employees accepting any gift, entertainment, or hospitality. Violations of these limitations would result in suspension, demotion, or dismissal subject to applicable state law.

The substitute bill subjects state officers and employees of the Legislature and Executive Branch to the same itemized reporting required by lobbyists for expenditures by their clients. The following new exemptions to these itemized requirements would be added:

• •gifts having a value of $15 or less;
• •food and beverage having a value of $25 or less; and
• •entertainment or hospitality in the form of recreation, food, and beverage provided at a "public event."
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A public event is defined as an event:

• •where the general public is invited;
• •which is held for or by a membership organization;
• •which is held by, or in connection with, any national nonprofit, nonpartisan organization established for the purpose of serving, informing, and educating state officers; and
• •which all members of a bona fide legislative delegation are invited.
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The substitute bill provides that the value of all gifts, entertainment, and food or beverage requiring itemization under the disclosure requirements after July 1, 2002, would be tied to the average Consumer Price Index.

Lobbyists with more than one client would be required to file a separate expenditure summary report per reporting period and each report would have to include:

• •The name of each legislator, legislator-elect, member of the Judicial Branch, or employee accepting food and beverage of $25 or more, regardless of the number of clients who paid for such food and beverage, and which is provided at a single event.
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• •The total amount spent including tax and gratuity spent on each individual.
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• •The date the food and beverage was provided.
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The summary report would not have to include the exceptions to the itemized reporting required by lobbyists.

The substitute bill allows legislators to receive publications published by trade associations, professional associations, foundations, and tax-exempt organizations. These items are currently considered gifts, and therefore unacceptable if they have a value of $40 or more.

The substitute bill increases the amount of money from $5,000 to $15,000 in determining if an individual or an individual's spouse has a substantial interest in a business under the state ethics laws.

The substitute bill would expand the current law which allows campaign funds to be used for expenses of holding public office to add those expenses incurred by the office holder's spouse when appearing on behalf of, or in conjunction with, the office holder to promote that person's legislative or political agenda.

Background

The House Committee on Ethics and Elections substituted the provisions of Sub. for HB 2490 dealing with changes to the state ethics laws into HB 2489.

The House Committee of the Whole increased the value of food and beverage that would be exempt from lobbyists' itemized disclosure requirements from $15 to $25.

The Senate Committee on Elections and Local Government amended the substitute bill to require lobbyists to file a summary report and amended the provisions of SB 114 which allows campaign funds to be used for expenses incurred by the office holder's spouse.

The Senate Committee further amended the substitute bill by increasing the amount in the summary report from $15 to $25 as a reporting requirement for food and beverages given to legislators, Judicial Branch members, and employees. The other amendment was technical in nature (conforming the substitute bill and section 151 of 2001 SB 15).

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/fulltext.cgi