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BEST BEST & KRIEGER 3 <br />ATTORNEYS AT LAW <br />5. What is the value of the meal? <br />• The general rule for determining the value is to apply the fair market <br />value at the time the meal is received. Rather than estimating, the <br />best practice is to ask the donor to indicate the value in writing. <br />• Certain meals related to an invitation -only event, charity or political <br />fundraiser are subject to special valuation rules. <br />6. If it is a gift, is the meal subject to any gift limit? <br />• Travel Example: Public official "travel payments" which include <br />advances, reimbursements for transportation, parking, related lodging <br />and meals within the U.S. reasonably related to a legislative or <br />governmental purpose or issue in connection with an event where the <br />public official gives a speech, participates in a seminar, or provides a <br />similar public service are reportable on the Form 700 but are not <br />subject to the gift limit. <br />However, the lodging and meal expenses are limited to the day <br />immediately preceding, the day of, and the day immediately following <br />the speech, panel or similar service. (§ 89506(a)(1); Reg. <br />18950.1(a)(2).) Note the travel payments may subject a public official <br />to potential disqualification under the conflict of interest rules for <br />agency decisions involving the donor for a period of 12 months after <br />the time the gift or travel payment is made. <br />• Gifts To Agencies: A recent rule change now allows a third party <br />donation of travel (including meals) that will qualify as a gift to the <br />agency, rather than as a gift to an official, when it meets the definition <br />of "official agency business" as set forth in Regulation 18950.1. In <br />these cases, the meals are not subject to the gift limit and instead are <br />reportable on Form 801. <br />7. Did the official bring a spouse or a guest? <br />• Under certain circumstances a gift such as a meal to a spouse or guest <br />is considered a gift to the official when there is no established <br />relationship, the donor lobbies the official's agency, or the donor <br />engages in business with the agency. (Reg. 18943.) <br />ME <br />09879,00000\8634133.4 <br />