SS/SB 305 - This act modifies provisions of law relating ethics. DEFINITION OF EXPENDITURE: (SECTION 105.470(4)) Under current law, gifts and honorariums are considered to be an expenditure. This act repeals those provisions. The act also exempts the following from the definition of expenditure: • Any item, service, or thing of value transferred to any person within the third degree of affinity of the transferor which is unrelated to any activity of the transferor as a lobbyist; • Flowers and plants sent as an expression of condolence or congratulations within a reasonable time of the occasion being observed; and • Any plaque or award that signifies the honorary recognition of a service or other notable accomplishment, provided such plaque or award does not exceed $50. The act further stipulates that in order to be considered an expenditure, the following conditions must be met: • The expenditure must be made by a lobbyist, lobbyist principal, or a person acting on behalf of a lobbyist or lobbyist principal; • The expenditure must be made on behalf of a public official, or such public official's staff, spouse, or dependent children; and • The lobbyist, lobbyist principal, or person acting on behalf of the lobbyist or lobbyist principal must be present for the consumption or enjoyment of the expenditure by the recipient. CONSTITUENT EXPENDITURE REPORTING (SECTION 105.473.3(2)(c)) The act requires a lobbyist or a lobbyist principal to report, as part of their monthly reports, all constituent expenditures made on behalf of all public officials. A constituent expenditure is defined as any item of value: • that is given by a lobbyist, lobbyist principal, or person acting on behalf of a lobbyist or lobbyist principal; • on behalf of an elected public official; • for the exclusive benefit of an individual or group of individuals who are constituents of the public official; • that is received for an occasion at the capitol building. GROUP EXPENDITURE REPORTING: (SECTION 105.473.3(2)(e)) Under current law, group expenditures are only permitted to be reported when certain groups are invited for occasions. This act repeals the requirement that the expenditure be for an occasion. The act further stipulates that expenditures are only permitted to be reported as a group when any of the following are invited in writing or by electronic means: • All members of the Senate; • All members of the House; • All members of the General Assembly; or • All statewide elected officials. Such invitations may or may not include staff and employees. EXPENDITURE LIMITS: (SECTION 105.474.1) The act prohibits public officials, or the staff, spouse, or dependent children of such public officials, from accepting any expenditure or combination of expenditures from any lobbyist, lobbyist principal, and person acting on behalf of a lobbyist or lobbyist principal in excess of $40 on any one calendar day. Any public official who accepts expenditures in excess of $40 on any one calendar day shall be permitted to cure such violation by reimbursing the lobbyist, lobbyist principal, or person acting behalf of a lobbyist or lobbyist principal within 30 days of being notified by the Ethics Commission. GIFT BAN (SECTION 105.474.2) The act prohibits public officials, or the staff, spouse, or dependent children of such public officials, from accepting gifts from lobbyists, lobbyist principals, or any person acting on behalf of a lobbyist or lobbyist principal. INVESTMENT OF CAMPAIGN FUNDS (SECTIONS 130.021, 130.034) Under current law, a committee treasurer, deputy treasurer, or candidate may withdraw funds from a committee's account for the purpose of investing in the committee's name in any C.D., bond, or security. This act permits investment in any mutual fund. SCOTT SVAGERA