On September 28, state Assembly Speaker Carl Heastie announced Jane Feldman will be the executive director of the newly created Office of Ethics and Compliance.

A bipartisan Assembly committee recommended Feldman after conducting a nationwide search. Heastie said Feldman stood out from other applicants due to her years of experience, specifically her service as the first executive director of the Colorado Independent Ethics Commission.

In her new role in the Office of Ethics and Compliance, Feldman will be responsible for ethics training for Assembly members and staff, ensuring members are aware of the services available to them through the office, answering questions regarding ethics and disclosures, and working with the majority and minority conferences’ ethics counsel to determine legislative ethics areas to review.

Feldman, who began her career in the New York County District Attorney’s Office, said in a statement she was “excited to return to her home state to help the Assembly accomplish its ethics and policy goals.”

Photo of the New York State Capitol by UpstateNYer on Wikimedia Commons.

A proposed constitutional amendment has been submitted to appear on the November 2016 ballot.

This measure, titled The Voters’ Right to Know Act, would increase campaign finance disclosure requirements and eliminate gifts to public officials from certain entities.

The act is designed to remove the “dark money” loopholes of nonprofit contributors by requiring anyone contributing $10,000 or more to be identified if that money winds up supporting a political effort. It also calls for updating and improving the electronic reporting system, clearer disclosure of contributors on television ads, and stronger penalties for violators.

The act also would ban gifts to public officials from lobbyists and lobbyist employers. The monetary limit on gifts to public officials from individuals would be lowered to $200 from the current amount of $460.

Backers of this proposition hope it will lead to greater transparency and encourage greater engagement from all voters.

The Fair Political Practices Commission (FPPC) has come out in opposition to Assembly Bill 1544. This bill, currently awaiting Gov. Jerry Brown’s signature or veto, would change disclosure requirements for certain types of behested payments.

Currently, elected officials must disclose if an entity provides funding to a charity or government program based on the official’s request, including any funding coming from government agencies. Should the governor sign AB 1544, elected officials would no longer have to report payments provided by government agencies to nonprofit or for-profit groups when the purpose of the funding is primarily for a governmental or legislative purpose.

Assemblyman Ken Cooley, the bill’s sponsor, said disclosure should not be required when payments are sought from government agencies, as it is part of a legislator’s job to advocate for such grants and opportunities on behalf of his or her district.

The FPPC opposes the bill because eliminating these types of behested payments from disclosure requirements could result in the public not being informed of millions of dollars in behested payments to nonprofit and for-profit groups.

The number of municipalities and regional governments our research associates track continues to grow. We now cover almost 300 municipalities and local governments. This is part of a continuous effort to better serve the needs of our clients.

In that effort, we have recently added abridged jurisdictions to our website. These entries, condensed due to the limited number of relevant local laws, provide the core information our clients need for their government relations work.

The new jurisdiction is: Yuma, Arizona.

Enjoy these fun photos from the 2015 NCSL Legislative Forum in Seattle, Washington!

Lobbying

“If Congress Keeps Cutting Its Staff, Who Is Writing Your Laws? You Won’t Like The Answer.” by Anthony Madonna and Ian Ostrander for Washington Post

Colorado: “Colorado Energy Companies Spend Top Dollar on Lobbyists; What Do They Get in Return?” by Megan Schrader for Colorado Springs Gazette

Texas: “Austin Officials Considering Overhaul of Lobbyist Rules” by Lilly Rockwell for Austin American-Statesman

Utah: “It’s American Legion Versus Lobbyists in Fight for Space at Capitol” by Lee Davidson for Salt Lake Tribune

Campaign Finance

“U.S. Court Rejects Republican Challenge to SEC Pay-to-Play Rule” by Sarah Lynch for Reuters

Ohio: “House Legislator Ron Gerberry Resigns after Guilty Plea” by The Associated Press for Columbus Dispatch

Pennsylvania: “Ethics Board Fines Oh, Cites Illegal Contribution” by Tricia Nadolny for Philadelphia Inquirer

Ethics

New Jersey: “Trenton City Council Members Chester and Muschal Fight Each Other in Council Chambers” by Sulaiman Abdur-Rahman for The Trentonian

Pennsylvania: “Kane Ordered to Stand Trial on All Charges” by Craig McCoy and Angela Couloumbis for Philadelphia Inquirer

Wisconsin: “Bill to Exempt Political Crimes from John Doe Investigations Clears Assembly Committee” by Jessie Opoien for Capital Times

Elections

“Family Issues Weigh Heaviest on Biden as He Considers a 2016 Campaign” by Dan Balz for Washington Post

On August 4th, members of State and Federal Communications made their way to the Firestone Country Club to attend Executive Women’s Day. Presented by Astellas Pharma, Inc., the event took place during the WGC-Bridgestone Invitational. It brought together women in executive positions from companies and organizations all over Northeast Ohio, including Morgan Stanley, FirstMerit Bank, and the Greater Akron Chamber.

Starting off with a welcome from Vanessa Letera, a Senior Sales Representative from Astellas, Letera urged the audience to remember to make time for themselves and their own health. After the welcome, a panel discussion commenced, moderated by Lee Jordan, an anchor at ABC Cleveland affiliate Newsnet5. The panelists consisted of Patricia DePompei, President of University Hospitals Rainbow Babies and Children’s Hospital; Jo Seymour, Vice President of The Seymour Group at Morgan Stanley; and Sarah Flannery, Partner at Thompson Hine. The topics discussed ranged from career challenges to handling and deciding priorities on the path toward success.

Keynote speaker, Carey Lohrenz, spoke about how she was able to translate lessons she learned as a naval aviator into the workplace. Being in charge of a team of pilots taught Lohrenz about teamwork. “The single most important component to a team’s success is knowing your purpose,” said Lohrenz.

At the conclusion of her presentation, attendees were invited to go on a behind-the-scenes tour or to a networking session.  Participants were also given the opportunity to try out their golf game on the first hole in the course.

Thank you to Astellas and the PGA TOUR for the opportunity to attend this event.

Q. I will be attending several upcoming conferences where legislators and other public officials will be present.   I’m not a registered lobbyist at the state level—do I still need to worry about gift limits?

A. Even if you are not a registered lobbyist, you will still need to be mindful of the various gift limits applicable to legislators and public officials you engage at these conferences.  Depending on your company’s status as a lobbyist employer, you may be subject to more stringent limits in certain jurisdictions.  It’s important to remember there is no one-size-fits-all approach to determining permissibility.  Each state addresses gift limits differently, and what will be permissible in one jurisdiction will not be permissible in another.   Further, you should not depend on the legislator or public official to know applicable gift limits.  Because gift limits may vary depending on your company’s status as a lobbyist employer, officials may not be aware of which limit to apply when accepting gifts and benefits.

Numerous states have gift exceptions specifically applicable to expenditures at national conferences to which all members of the legislature are invited (such as NCSL) as long as the expenditures are part of the conference agenda.  Examples of this include lunch/dinner events, or a sponsored state night.  However, for private dinners and events and other expenditures not included on the official agenda, you will still be subject to a state’s regular gift limits and restrictions.

In some cases, your expenditures on behalf of these individuals will need to be disclosed on a lobbyist employer report.  You will need to coordinate closely with your company’s government affairs or legal department to not only determine permissibility, but to determine whether the expense is reportable. For jurisdictions requiring disclosure, you may need to report the date of the expense, the name of the individual(s) receiving the benefit, a brief description, and the value of the expense.   Make sure to save itemized receipts.  Some jurisdictions require you to report the name and address of the vendor (such as a restaurant or catering company) and may additionally require you to determine the reportable amount by specific benefit received.  Some states do not permit meal expenditures to be calculated on a prorated basis (i.e., a dinner valued at $375, divided by the number of attendees) but instead require disclosure of a specific amount attributed to a particular legislative official or employee (i.e., $15.75 for the salmon entrée).

You can directly submit questions for this feature, and we will select those most appropriate and answer them here. Send your questions to: experts@stateandfed.com.

(We are always available to answer questions from clients that are specific to your needs, and we encourage you to continue to call or e-mail us with questions about your particular company or organization. As always, we will confidentially and directly provide answers or information you need.) Our replies to your questions are not legal advice. Instead, these replies represent our analysis of laws, rules, and regulations.

Enjoy these photos from recent August events.

For the second year, our summer interns have taken advantage of the Akron  Intern Edge program.  Intern Edge, a program offered by Torchbearers and Leadership Akron, serves as a conduit between interns and established community leaders, as well as organizations and groups making a positive difference in our community, to show Akron’s advantages. Each Intern Edge session offered interns access to community decision-makers and lessons for personal and professional success.

[photo left to right:  Elizabeth Scozzaro, David Jones, Sophia Avouris, Costa Janos, Nikos Frazier, and our Human Resources Director, Sharri Roper.]

Sr. Compliance Associate, James Warner, Esq. met with Janelle Snoderly during the Walmart Manufacturing Summit in Bentonville, Arkansas.

As Elizabeth Z. Bartz, State and Federal Communications, Inc., president and CEO, introduced Dr. Beverly Warren, President of Kent State University, she slipped in a selfie with Dr. Warren.

[Photograph by Nikos Frazier, Social Media Intern]

Dr. Beverly Warren enjoyed a photo opportunity with the 2015 State and Federal Communications, Inc. interns,
after presenting the keynote speech at the United Way of Summit County’s 13th Annual Power of the Purse luncheon.

Akron staff participating in the WASRG Luncheon in Washington, DC, where Federal Compliance Associate, Rebecca South, was elected 2015 President of WASRG.  Congratulations, Rebecca.

A runoff election for mayor will be held next month due to such close voting results in the August 6 Nashville municipal election.

Megan Barry and David Fox came in first and second, respectively, in a field of seven candidates. Barry, an at-large member of Metro Council, earned about 1,500 more votes than Fox, former chair of the Metropolitan Nashville Public Schools Board.

The runoff election will be held on September 10.

Mainers for Accountable Elections, an activist group advocating for stricter campaign finance law, has developed a ballot measure to be considered by voters in the November 2015 election. The measure proposes to establish gubernatorial transition committees to help finance a governor-elect’s inauguration; increase penalties for late filings and certain other campaign finance violations; and require independent expenditure communications to include a conspicuous statement listing the top three funders of the communication.

The measure also proposes several amendments to the Maine Clean Election Act related to public funding for candidates. The most ambitious section of the measure proposes to require lawmakers to eliminate $6 million in corporate tax breaks in order to fund the expansion of the Commission on Governmental Ethics and Election Practices.

The measure will appear as “Question 1” on the November 2015 ballot.

The City of San Diego Ethics Commission has proposed amendments to the city’s campaign finance laws related to the disclosure requirements applicable to referendum and initiative petitions.

The proposed amendments would require additional campaign disclosures of committees supporting or opposing the qualification of an initiative or referendum measure on the ballot.

The city Ethics Commission is scheduled to consider the amendments at its upcoming August 13, 2015 meeting.

Photo of the San Diego skyline courtesy of Tomcio77 on Wikimedia Commons.

The Brennan Center for Justice, on behalf of several New York lawmakers, filed suit against the New York State Board of Elections, challenging a 1996 board ruling that treats limited liability companies (LLCs) as individuals. The ruling has the result of creating a loophole allowing LLCs to circumvent stricter contribution limits imposed upon other business entities, namely partnerships and corporations.

The board had an opportunity to overturn its 1996 ruling at its April 2015 board meeting, but board members split along party lines to uphold the ruling, thus prompting the Brennan Center for Justice to file suit.

Plaintiffs allege the LLC loophole allows special interest groups to funnel tens of millions of dollars into political campaigns without transparency. Corporate contributions are limited to $5,000 per calendar year; partnerships are limited to $2,500 per calendar year at the partnership entity level. Under the 1996 board ruling, LLCs can contribute substantially more than other business entities because they are treated as individuals.

The lawsuit was filed in the Supreme Court of New York, County of Albany.

Executive Director of New York’s Joint Commission on Public Ethics Letizia Tagliafierro is resigning, effective July 31, 2015.

Tagliafierro has served as the executive director since October of 2013. She is moving to the state Department of Taxation and Finance where she will be a deputy commissioner, leading the criminal investigations division.

The next meeting of the JCOPE is scheduled for August 4 and the commissioners are expected to begin a national search for a replacement for Tagliafierro.