The lawsuit filed in state court to block the government ethics overhaul recently approved by voters will have its first hearing December 8th. The lawsuit challenges the constitutionality of Initiated Measure 22 which became effective last week restricting campaign contributions and gifts from lobbyists.

The group of 24 Republican lawmakers bringing the suit are seeking an injunction to block the law, and South Dakotans for Integrity, the ballot question committee that supported Initiated Measure 22, has filed a motion to intervene.

On Jan. 1, new changes to regulations concerning gifts for federal employees take effect.

Among the changes the Office of Government Ethics (OGE) made to the federal regulations include a non-binding recommendation employees “consider declining otherwise permissible gifts if they believe that a reasonable person with knowledge of the relevant facts would question the employee’s integrity or impartiality as a result of accepting the gift.”

Additionally, federal officials who are required to be granted permission to attend “widely attended events” must now seek the permission in writing. The OGE declined to change the $20 threshold for accepting a gift.

Amendments to the rules made by the OGE were published on Nov. 18 in the Federal Register. The OGE press release is here.

Mayor Jim Kenney signed an executive order this week making changes to the city’s ban on gifts to executive branch employees.

Executive Order 10-16 specifically mentions lobbyists as a prohibited source of gifts, whereas the previous administration’s order only mentions persons seeking business with the city or those seeking legislative or administrative action. Furthermore, gifts are now prohibited for a 12-month period from anyone seeking official action to the specific officer or employee from whom action was sought.

The new order does, however, carve out several exceptions to the prohibition, including the acceptance of food, beverage, and entertainment at a reception open to the public. These changes are effective immediately.

Photo of Mayor Jim Kenney by Jeff Meade on Wikimedia Commons.

Last week, the executive director of the Chicago Board of Ethics told the mayor and aldermen they could buy Cubs playoff tickets at face value provided they went to the game themselves and were publicly acknowledged by having their names announced or displayed.

A new ethics interpretation, however, will take effect before the Cubs face the Dodgers in game six of the seven-game series. In a revised memorandum, the Board of Ethics said the elected officials may accept the tickets at face value only if they perform a ceremonial duty or action and there is a clear and direct connection between the official’s attendance and performance of such ceremonial duty or action.

The Board of Aldermen passed two bills on October 7 to establish campaign contribution limits and clarify gift reporting.

Board Bill 53 limits campaign contributions in city elections to $10,000 per election cycle. Violations could result in 90 days of jail and a $500 fine. If signed by Mayor Francis Slay, the bill would be effective April 6, 2017, just after the spring mayoral election.

Board Bill 126 requires elected officials to report gifts and travel expenses valued at $375 or more when given by interested persons. Violating the reporting requirement would result in docked pay. Currently, the code requires reporting of gifts exceeding $250, but it is not clear whether public officials are reporting gifts as required.

Photo of the Gateway Arch in St. Louis by Daniel Schwen in Wikimedia Commons.

Columbus Mayor Andrew Ginther signed emergency legislation yesterday creating a City Council Ethics Policy. The ethics policy aligns with state ethics law as well as with an executive order signed by Ginther in May 2016.

Ginther’s executive order was immediately effective for executive branch public officials and employees. The new City Council policy has nearly identical provisions on prohibited conduct and financial disclosure, but is applicable to all public officials and city employees.

Effective immediately, public officials and employees may not solicit or accept gifts or employment from anyone doing business with the city. They also must wait at least one year after leaving public service before representing any person or entity before any city department or division with respect to a matter they personally participated in while serving with the city.

Designated officials and employees must also file financial disclosure statements each year. The statements must include a description of each gift, or aggregate of gifts, exceeding $75 from certain sources during the previous calendar year.

Photo of Mayor Andrew Ginther by David Paul on Wikimedia Commons.

The San Francisco Ethics Commission voted unanimously to submit an initiative ordinance to the November 2016 ballot.

The measure would restrict lobbyist gifts, campaign contributions, and bundled contributions.

If passed by voters, the ordinance will become effective January 1, 2018.

Sen. Todd Kaminsky and Representative Charles Lavine have introduced a new bill which would amend the penal law relating to unlawful giving. Senate Bill 8169 would close a loophole allowing public officials to receive or give gifts or benefits in excess of $3,000 simply because of their official position.

The bill does not affect campaign contributions, which are already monitored by the Board of Elections.

The legislation is a response to the recent Supreme Court decision in McDonnell v. The United States, which permits officials to receive lavish gifts so long as the gifts are not exchanged for promises to perform governmental acts.

Q. In what ways are my company and I allowed to get involved in the 2016 national party conventions?

A. The opportunities for individuals and companies to involve themselves in this year’s party conventions are legion, but caution must be exercised to avoid running afoul of the many intersecting laws governing your interaction with the delegates and other officials in attendance as well as the committees putting on the conventions.

Convention delegates and those seeking selection as delegates are subject to the federal contribution rules, which means corporations, labor organizations, foreign nationals and businesses, and federal contractors are not permitted to make contributions. However, those permitted to contribute may do so without limits. Delegates who are public officials are subject to the gifts laws governing the office they hold. In other words, federal officials are subject to federal gift laws, state officials are subject to state gift laws, and local officials are subject to any state and local laws applicable to their office.

Individuals and organizations seeking to become involved with the conventions may contribute to the convention host committees. The host committees are nonprofit organizations set up to encourage commerce in and project a favorable image of the convention city. Organizations and individuals may donate money and make in-kind donations to the host committee to defray the costs of the convention, including costs related to promoting the city and welcoming attendees, providing information and samples to attendees, administrative expenses, providing the use of convention facilities, transportation, law enforcement, hotel rooms, accommodations and hospitality for party site selection groups, and for other convention-related facilities and services.

Convention committees are related to the national party organizations and therefore federal campaign finance laws apply. As a result, direct and in-kind contributions using funds from a corporation, labor organization, foreign nations and businesses, and federal contractors are prohibited. Goods and services may be provided to the national committee in the ordinary course of business. Obviously, it’s quite important to distinguish the host committees from the convention committees. Thankfully, both host committees, the Cleveland 2016 Host Committee and the Philadelphia 2016 Host Committee, use the word “host” in their official names.

The national party conventions represent high profile ways to gain exposure both personally and for your organization. This high profile is also why compliance with the rules governing your dealings with committees, delegates, and attendees is so important.

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(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.

Columbus Mayor Andrew Ginther signed Executive Order 2016-01 on Tuesday, May 10, establishing ethics guidelines for public officials.

Effective immediately, public officials and employees may not solicit or accept gifts or employment from anyone doing business with the city. They also must wait at least one year after leaving public service before representing any person or entity before a department, board, or commission with respect to a matter they personally participated in while serving with the city.

Designated officials and employees must also file financial disclosure statements each year. The statements must include a description of each gift, or aggregate of gifts, exceeding $75 from certain sources during the previous calendar year.

Ginther believes the order will help to improve public opinion of City Hall.

Today, amendments to a Municipal Securities Rulemaking Board (MSRB) conflict-of-interest rule concerning gifts and gratuities take effect. MSRB Rule G-20 includes restrictions limiting gifts to $100 for municipal advisors giving gifts to employees of entities engaged in municipal securities activities. Municipal advisors are also prohibited from receiving reimbursement of entertainment expenses from the proceeds of an offering of municipal securities. The rule is intended to protect against improprieties and conflicts of interest arising when regulated entities give gifts related to the municipal securities or municipal advisory activities of the recipients’ employers.

The San Francisco Ethics Commission has announced two interested persons meetings on May 11 and May 16 to discuss a proposed November 2016 ballot measure that would ask San Francisco voters to place new restrictions on lobbyist contributions, bundling of contributions by lobbyists, and gifts from lobbyists.

The feedback from these meetings will be used in the analysis and recommendations on the proposed ballot measure presented at the May 23, 2016 commission meeting.

Written comments and RSVPs can be sent via email to ethics.commission@sfgov.org.

Former state lawmaker Holli Woodings is leading the campaign for a voter initiative to make large-scale changes to state ethics laws. Changes would include prohibiting political contributions from state contractors as well as cutting contribution limits across the board, banning gifts of more than $50 from lobbyists, and creating a one-year revolving door provision for public officers.

Having collected the required 48,000 signatures in less than two months, Woodings hopes the measure will appear on the November 2016 ballot. Signature collection will continue to be sure enough valid signatures have been gathered before the April 30 deadline.

Meeting today for its annual veto-session, the Virginia General Assembly turned its attention to ethics legislation amendments recommended by Gov. Terry McAuliffe. Lawmakers recently passed identical bills, Senate Bill 692 and House Bill 1362, to roll back some of the changes made last year to restrictions on gifts from lobbyists.

McAuliffe proposed tightening the limits further and prohibiting bundling of gifts from multiple sources to avoid the threshold. The Senate, today, voted against adopting those proposals. The governor must now choose between signing or vetoing the bills as passed by both houses.

Photo of the Virginia State Capitol by Anderskev in Wikimedia Commons.