The Ohio Joint Legislative Ethics Committee recently issued an advisory opinion clarifying certain gift reporting requirements for members, candidates, and employees of the General Assembly. The opinion also applies to reports filed by any legislative agent providing a gift to a reportable person.

Advisory Opinion 2014-003 speaks to the value of a complimentary ticket to a charitable fundraiser where the source of the ticket is a third party. When provided by a third party, a complimentary ticket to a non-political fundraiser is a gift, the value of which is the portion of the ticket price that is not tax-deductible.

Furthermore, such portion accrues toward any applicable gift limit. Conversely, a ticket to a charitable fundraiser where the source is the entity holding the event is not considered a gift.

Section 42.52.420 of the Revised Code of Washington allows public officials to accept gifts in the form of food and beverage on infrequent occasions. In recent months, “infrequent occasions” has come under scrutiny after a widely-read report showed the state’s 50 most active lobbyists treated legislators to meals totaling more than $65,000 over a four-month period.

After the Legislature failed to pass any pertinent legislation before its adjournment on March 13, 2014, the Legislative Ethics Board took up the issue. The board held a meeting on June 17, 2014, to review proposals received from the public related to how to define infrequent occasions.

All of the proposals considered by the board would require legislators to file a report upon receiving a free meal. Stricter proposals set the dollar amount threshold for reporting the meal at $5 and the amount of free meals per year at three to five. Others set the threshold at $25 and allow 52 free meals per year. One especially ambitious proposal would require a reduction in a legislator’s per diem allowance for every free meal he or she accepts.

The board will continue to take public comment on the issue and will reconvene on August 19, 2014, to further consider public proposals.

The Senate has passed resolutions to tighten ethics laws by creating a new position of ethics ombudsman, installing protections for whistleblowers, and banning the raising of campaign funds during August, the last month of the legislative year. A bill to extend the fundraising blackout period to the Assembly fell four votes short of the two-thirds needed for approval.

The Senate also approved an amended bill to regulate travel gifts and the use of campaign funds. Senate Bill 831 initially would have barred acceptance of gifts of travel worth more than $8,000, but was amended to only require nonprofit groups paying for legislators’ travel to disclose donor information.

In a May 23 legal advisory to federal designated agency ethics officials, the Office of Government Ethics announced it had raised the widely attended gathering gift exception ceiling for nonsponsor gifts of free attendance from $350 to $375. This revision of 5 C.F.R. § 2635.204(g)(2) became effective May 19, 2014, when it was published in the Federal Register.

Gov. Terry McAuliffe has vetoed two bills unanimously passed by the legislature designed to restrict his ability to solicit gifts and campaign contributions. The identical bills would have prevented the governor, his campaign committee, and any PAC established on his behalf from soliciting or accepting gifts or contributions exceeding $50 from any person or entity seeking loans or grants from the Governor’s Development Opportunity Fund.

The governor sent the bills back with amendments extending the rules to members of the General Assembly, but both houses rejected the amendments to their bills.

The governor argued the restrictions should extend to the General Assembly because, although he awards loans and grants from the fund, the money is appropriated by the General Assembly. Legislators responded it would be impractical to include them in the bills, because they are not privy to such high-level economic development talks or information about the parties involved.

Photo of Gov. Terry McAuliffe courtesy of Kate Wellington on Wikimedia Commons.

The Assembly is now considering a bill passed by the Senate to further restrict gifts to lawmakers. Senate Bill 1443 prohibits all gifts from lobbyists and reduces the value of gifts state officials can receive from a non-lobbyist source to $200 per calendar year. Currently, lobbyists may provide gifts of $10 per calendar month and officials can receive $440 from a non-lobbyist source per calendar year.

The bill also prohibits most recreational tickets to concerts, professional sporting events, and amusement parks.

Photo of the California Senate chamber by David Monniaux on Wikimedia Commons.

County commissioners are pushing for a rewrite of the county ethics code only four years after the strict code was adopted. Commissioners complain Broward’s ethics code is too strict, setting up officials for violations and penalties for something as small as accepting a bottle of water at an event. Commissioners discussed limiting gifts to $10 and excluding nonalcoholic beverages from the ban.

The April 22 meeting was the first step towards rewriting the code, and potential changes could be enacted by the County Commission later this year, though some changes may require voter approval.

Ohio lawmakers plan to introduce legislation next month making significant changes to state ethics rules for the first time in decades. The bill would double the amount lobbyists can spend on gifts to lawmakers but require lobbyists and public officials to report when a lobbyist spends more than $100 per year on an official for meals, entertainment, transportation, or other gifts.

State Sen. Larry Obhof, a Republican co-sponsor of the bill, maintains a higher reporting threshold is necessary to keep lobbyists honest, as many lobbyists seek to find ways to avoid the lower threshold.

Other notable legislative provisions raise the lobbyist registration fee from $25 to $35, strengthen whistle-blower protection guidelines, allow lawmakers to remedy reporting errors, require random audits of financial disclosure statements, and make changes to procedures for ethics investigations. Bill sponsors argue the bill is intended to increase transparency and accountability.

Photo of the Ohio State Capitol courtesy of Alexander Smith on Wikimedia Commons.

Today the Phoenix, Arizona City Council is expected to vote on whether to create a city ethics commission and whether to add a gift policy to its ethics policies.

According to the council’s agenda for the meeting, the proposed gift policy identifies permissible and prohibited gifts for elected officials, employees, board members, and volunteers.

It also identifies permissible gifts to elected officials required to be disclosed on a form submitted to and posted by the city clerk.

According to AZCentral.com, the proposed ordinance would allow officials to avoid disclosing event tickets, food, drinks, transportation, or lodging they received as long as such gifts were related to economic development, tourism promotion, or a sister-cities program.

If passed, the ordinance would also create an ethics commission authorized to receive allegations of ethical violations, investigate, take testimony, and engage in any other activity in order to oversee the investigation and enforcement of the gift policy and other conflicts of interest.

The meeting is scheduled to start at 3:00 p.m.

National:

States Look Harder at Rules on Gifts to Lawmakers

Philadelphia Inquirer – Amy Worden | Published: 4/6/2014

News that four state lawmakers from Philadelphia were caught on tape allegedly taking cash or gifts from a lobbyist has stoked new calls for reform. Pennsylvania is not alone. Organizations that monitor ethics laws nationwide say the last decade has brought tighter state laws involving gift-giving, lobbying, and conflict-of-interest, some driven by similar scandals.

Federal:

Big Donors Fear Shakedown after Decision

Politico – Anna Palmer and Tarini Parti | Published: 4/2/2014

The U.S. Supreme Court’s ruling that the limit on an individual’s overall campaign contributions infringed on First Amendment rights cleared the way for donors to give the maximum amount to as many candidates and political parties as they wish during a two-year election cycle. The decision means a common excuse for brushing off fundraising requests – that potential donors, many of them lobbyists,  have already “maxed out” their contributions under the cap – is now moot.

From the States and Municipalities:

Arizona – Ariz. Legislators Don’t Disclose Gifts, Resist Change

Arizona Republic – Mary Jo Pitzl | Published: 4/8/2014

Disclosure is not a comfortable topic at the Arizona Capitol, where four years ago the Fiesta Bowl scandal erupted over 28 current and former lawmakers accepting lavish trips and college-football game tickets. Since then, despite proposals to clarify disclosure rules, nothing has changed. State law requires elected officials to disclose gifts they received that were worth $500 or more. But that is not strictly followed, according to an Arizona Republic review of the annual reports. At least nine lawmakers did not initially report trips they took in 2013.

California – Suspended Senators Leave Millions of Constituents Short on Representation

Sacramento Bee – Jeremy White | Published: 4/6/2014

The legal troubles roiling Sacramento have left millions of constituents without the elected representatives they sent to the Capitol to advocate and vote for their interests. Three senators fighting criminal cases were suspended from office. When lawmakers are stripped of their most basic and potent tool for shaping policy – a vote on legislation – the constituents are also, in a sense, disenfranchised.

Delaware – Lobbying Fee Proposed to Pay for Oversight

Wilmington News Journal – Jonathan Starkey | Published: 4/9/2014

Legislation will be introduced in Delaware that would require lobbyists to pay an annual registration fee to help fund the state Public Integrity Commission. The bill would require lobbyists to pay the fee for each client they represent. Another measure filed recently would impose a fee for lobbyists who file disclosure reports late.

Georgia – Ethics Chief in Georgia Wins Suit over Ouster

Athens Banner Herald – Kate Brumback (Associated Press) | Published: 4/5/2014

A jury ruled former state ethics commission Executive Secretary Stacey Kalberman was unfairly forced from that job as retribution for investigating Georgia Gov. Nathan Deal’s 2010 campaign, and ordered the state to pay her $700,000. Kalberman’s lawyers tried to show the decision to cut her salary by $35,000 and to eliminate an aide’s job were a response to the pair’s desire to issue subpoenas for records in the investigation. Attorneys for the commission tried to establish the agency’s budget was in crisis and that was what motivated the cuts.

Indiana – Rep. Eric Turner, Facing Ethics Probe, Has Long and Deep Ties to Nursing Home Companies

Indianapolis Star – Tony Cook | Published: 4/4/2014

An Indiana House ethics committee is set to probe Rep. Eric Turner’s role in quashing legislation that would have halted new nursing home development and helped his son’s company. An Indianapolis Star review of Turner’s personal business interests found he has a stake in at least a half dozen companies that have been engaged in building, leasing, or investing in nursing home properties. The Star also found Turner did not list some of the companies on financial disclosure statements.

Iowa – Supreme Court Declines to Hear Iowa Campaign Finance Challenge

Reuters – Lawrence Hurley | Published: 4/7/2014

The U.S. Supreme Court declined to hear a challenge to an Iowa law that prohibits campaign donations from corporations but allows them from unions. By opting not to hear the case, the justices left intact an Eighth U.S. Circuit Court of Appeals ruling from June 2013 that upheld the ban.

Minnesota – Minnesota’s Limits on Campaign Donations to Be Challenged

Minneapolis Star Tribune – Rachel Stassen-Berger | Published: 4/8/2014

For decades, Minnesota law has said campaigns can raise 20 percent of their cash from lobbyists, PACs, and donors who give large amounts. After candidates hit that limit, they only can accept lesser amounts from subsequent contributors. Opponents say the “first come, first served” law is an unconstitutional limit of free speech, and the libertarian Institute for Justice will file a lawsuit challenging the statute.

Ohio – Ohio House Approves Eliminating Rule on Corporate Political Spending after Lengthy Debate

Cleveland Plain Dealer – Jeremy Pelzer (Northeat Ohio Media Group) | Published: 4/9/2014

The Ohio House passed legislation that would abolish a state rule restricting corporate political spending. Under the rule, corporations have to identify themselves in political ads and disclose money they spend in support of candidates. It also bars political spending made independently of campaigns by foreign-owned corporations and companies that recently received government contracts. House bill 483 now goes to the Senate.

Pennsylvania – Pa. Senate Passes Bill to Ban Cash Gifts to Legislators

Philadelphia Inquirer – Amy Worden | Published: 4/9/2014

The Pennsylvania Senate unanimously approved a bill that bans cash gifts to lawmakers and other elected and appointed officials in state and local government. The Senate also approved unanimously passed an ethics rule change for the chamber that carries the same provisions on cash and cash-like gifts. The only difference between the two is the bill caries the weight of the law so violators could be prosecuted. The ethics rule does not; it calls for a civil penalty.

Pennsylvania – Sources: U.S. prosecutors made no judgment on sting case

Philadelphia Inquirer – Craig McCoy and Angela Couloumbis | Published: 4/8/2014

The Philadelphia Inquirer reported federal officials never came to a final conclusion about the merits of a suspended legislative sting operation before Pennsylvania Attorney General Kathleen Kane asked them to halt that review. Kane, after revelations she decided to abandon the case in which several officials were caught on tape accepting cash and other gifts from an informant posing as a lobbyist, had said her decision had been endorsed by federal law enforcement officials who she has not identified by name.

South Carolina – SC Governor, AG Candidates Collected Excess Campaign Cash

The State – Andrew Shain | Published: 4/5/2014

An analysis by The State showed candidates for governor and attorney general in 2010 received $336,345 in campaign contributions above South Carolina’s legal limits. While the excessive donations represent a fraction of the amounts raised by these candidates, the newspaper said its analysis of state Ethics Commission data points to how campaigns can fail to follow campaign finance rules without getting caught by regulators.

Virginia – Va. Gov. Terry McAuliffe Wants Lobbyists to Report Gifts to Lawmakers’ Families

Columbus Republic – Alan Suderman (Associated Press) | Published: 4/8/2014

Virginia Gov. Terry McAuliffe amended an ethics bill that passed the General Assembly in the wake of a gifts scandal that led to corruption charges against former Gov. Bob McDonnell. McAuliffe’s proposed changes would require lobbyists to report what they spend on gifts and entertainment for both lawmakers and their families. Lawmakers will have to approve the governor’s changes.

Wisconsin – GOP’s Mike Ellis Caught on Recording Talking of Illegal Fundraising

Milwaukee Journal Sentinel – Patrick Marley and Daniel Bice | Published: 4/10/2014

A secretly recorded video produced by a conservative activist shows state Senate President Mike Ellis talking about creating and raising money for a committee to run negative ads against his Democratic opponent, which would be illegal for a candidate to do in Wisconsin. Ellis issued a statement acknowledging the conversation but said he learned the next day the proposal was illegal and did not pursue it.

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Virginia Gov. Terry McAuliffe has submitted technical changes to the General Assembly on the major ethics legislation passed this session, including a change to the effective date of the legislation.

The legislation enacts a limit on gifts from lobbyists and principals and increases the frequency for lobbyist filings.

The changes must be approved by the House and Senate before the legislation takes effect.

Photo of Gov. Terry McAuliffe courtesy of Kate Wellington in Wikimedia Commons.

Lobbying

“Bottom Line” in The Hill.

Ottawa, Canada: “City rules allow lobbyists to donate to councillors’ campaigns” by Joanne Chianello in the Ottawa Citizen.

Campaign Finance

“FEC Publishes New Contribution Limits for 2013-2014” by Kent Cooper in Roll Call.

Delaware: “Del. lawmakers eye campaign finance bill” by The Associated Press in The Washington Times.

Maine: “Maine rethinking campaign contribution limits after Supreme Court ruling” by Reid Wilson (Washington Post) in the Bangor Daily News.

New York: “NY ethics board tells 4 advocacy groups it won’t shield names of their financial backers” by The Associated Press in The Republic.

Ethics

California: “California lawmakers propose reforms to regain public trust after series of scandals” by Fenit Nirappil (Associated Press) in the Daily Bulletin.

Georgia: “Deal proposes overhaul of Ga. ethics commission” by Phillip Lucas (Associated Press) in The Telegraph.

Georgia: “Another lawsuit from ex-ethics staffer is in the works” by Greg Bluestein in The Atlanta Journal-Constitution.

Pennsylvania: “Pa. Senate committee approves ban on cash gifts” by Amy Worden in The Philadelphia Inquirer.

From the State Legislatures

California: “State lawmakers’ per diem claims topped $1.1M in 2013” by Nick Heynen and Matthew Defour in the Wisconsin State Journal.

Elections

“Report finds states cutting wait times for voters” by Martha T. Moore in USA Today.

Nearing the end of its 2014 session, the Kentucky General Assembly passed significant ethics legislation containing recommendations the Legislative Ethics Commission has requested for years. House Bill 28 prohibits employers of legislative lobbyists and permanent committees from making campaign contributions to legislators and candidates for the General Assembly during a regular legislative session. Employers of legislative lobbyists must disclose on their expenditure reports the cost of advertising supporting or opposing legislation during a session of the General Assembly.

The bill also includes the “no cup of coffee rule,” eliminating the exception previously allowing legislative lobbyists to spend up to $100 on food and beverage for a legislator, extends the gift prohibition to legislative candidates, and prohibits legislative lobbyists and their employers from providing out-of-state transportation or lodging for legislators.

The bill awaits signature by Gov. Beshear.

The Pennsylvania House Bipartisan Management Committee has adopted an ethics rule banning cash gifts.

The rule was imposed in response to the highly publicized sting operation involving four House members who allegedly took cash from a lobbyist.

The rule permits house members to receive cash from family members and non-lobbyist friends.

Photo of the Pennsylvania State Capitol courtesy of Michael180 on Wikimedia Commons.