EthicsHonoraria

Section § 89501

Explanation

This California law explains what an 'honorarium' is and when it is not considered an honorarium. Typically, it's any payment for giving a speech, writing, or attending events. However, it doesn't include normal income from business activities like teaching or practicing law, unless the business is mainly about giving speeches. Additionally, payments returned within 30 days or donated to state funds aren't considered honorariums. There are also separate rules for travel-related payments, which are covered by Section 89506.

(a)CA Government Code § 89501(a) For purposes of this chapter, “honorarium” means, except as provided in subdivision (b), any payment made in consideration for any speech given, article published, or attendance at any public or private conference, convention, meeting, social event, meal, or like gathering.
(b)CA Government Code § 89501(b) The term “honorarium” does not include:
(1)CA Government Code § 89501(b)(1) Earned income for personal services which are customarily provided in connection with the practice of a bona fide business, trade, or profession, such as teaching, practicing law, medicine, insurance, real estate, banking, or building contracting, unless the sole or predominant activity of the business, trade, or profession is making speeches. The commission shall adopt regulations to implement this subdivision.
(2)CA Government Code § 89501(b)(2) Any honorarium which is not used and, within 30 days after receipt, is either returned to the donor or delivered to the State Controller for donation to the General Fund, or in the case of a public official of a local government agency, delivered to the public official’s agency for donation to an equivalent fund, without being claimed as a deduction from income for tax purposes.
(c)CA Government Code § 89501(c) Section 89506 applies to all payments, advances, or reimbursements for travel and related lodging and subsistence.
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Section § 89502

Explanation

This law prohibits California state elected officials, candidates for office, and certain government employees from accepting honorariums, which are payments for services for which the payer isn’t obligated to pay. Candidates become subject to this rule once they file intent to run for office and remain subject until they officially take office or terminate their campaign obligations. However, judicial candidates before December 31, 1996, are exempt. Members of state boards or commissions, or designated employees, cannot accept honorariums from sources they must report income or gifts from. Judges and part-time public higher education board members, unless elected, are not subject to these restrictions.

(a)CA Government Code § 89502(a) An elected state officer, elected officer of a local government agency, or other individual specified in Section 87200 shall not accept any honorarium.
(b)Copy CA Government Code § 89502(b)
(1)Copy CA Government Code § 89502(b)(1) A candidate for elective state office, for judicial office, or for elective office in a local government agency shall not accept any honorarium. A person shall be deemed a candidate for purposes of this subdivision when the person has filed a statement of organization as a committee for election to a state or local office, a declaration of intent, or a declaration of candidacy, whichever occurs first. A person shall not be deemed a candidate for purposes of this subdivision after the person is sworn into the elective office, or, if the person lost the election, after the person has terminated the person’s campaign statement filing obligations for that office pursuant to Section 84214 or after certification of the election results, whichever is earlier.
(2)CA Government Code § 89502(b)(2) Paragraph (1) does not apply to any person who is a candidate as described in paragraph (1) for judicial office on or before December 31, 1996.
(c)CA Government Code § 89502(c) A member of a state board or commission or designated employee of a state or local government agency shall not accept an honorarium from any source if the member or employee would be required to report the receipt of income or gifts from that source on the member’s or employee’s statement of economic interests.
(d)CA Government Code § 89502(d) This section does not apply to a person in the person’s capacity as judge. This section does not apply to a person in the person’s capacity as a part-time member of the governing board of any public institution of higher education unless that position is an elective office.
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