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).

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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.

A voter initiative is being developed in Orange County, California, to create a county ethics commission. The commission would enforce campaign finance limits for countywide offices as well as public ethics, including gifts and conflicts of interest.

The commission would also have a hotline where citizens could provide tips regarding ethics issues and would have the power to subpoena witnesses and documents.

If the initiative qualifies, it would appear on the November 2016 ballot. A version of the proposed initiative is available here.

On July 1, the maximum value for food, drink, or refreshment an individual may provide to an elected official or public employee in Louisiana for a single event increased from $58 to $60. This threshold value is adjusted each year by the Board of Ethics to reflect changes in the consumer price index.

The Legislative Ethics Board voted to allow Washington state legislators to accept free tickets to the U.S. Open golf tournament taking place this summer in Pierce County at Chambers Bay Golf Course. The face value of tickets is $110, which exceeds the state’s gift limit of $50.

However, members of the board reasoned legislators in attendance would not be mere spectators and would be conducting official business while at the golf tournament because they are slated to tour the golf course to learn about developments to the site.

The board conceded that lawmakers would have time to enjoy the hospitality tent and watch some of the tournament even though they would be attending on official legislative business.

Lawmakers met one final time Friday, April 17 to finalize the ethics reform bill passed at the close of the legislative session. Gov. Terry McAuliffe proposed an amendment to change the gift limit from $100 per gift, but allowing an unlimited number of such gifts, to a $100 aggregate limit from any one source.

After correcting a drafting error in the amendment, both chambers unanimously passed the measure. The new limits go into effect on January 1, 2016.

After completing work on the bill, the General Assembly adjourned sine die.

Photo of the Virginia State Capitol by Varmin on Wikimedia Commons.

The state Ethics Commission is discussing how to administer new lobbying and campaign laws signed by Gov. Asa Hutchinson. Senate Bill 967 (now Act 1280) limits lobbyists to one “planned activity” per week and provides a 30-day grace period for officials to return improper gifts. Political contribution limits from individuals and PACs to a candidate have been raised from $2,000 to $2,700 per election.

Act 1280 also authorizes the commission to oversee new ethics laws contained in a constitutional amendment passed by voters in 2014. The amendment prohibited lobbyist gifts and corporate contributions, but did not provide the commission authority to administer the constitutional changes.

Earlier this year lawmakers passed House Bill 1002 (now Act 47), but that law only authorized the commission to issue advisory opinions concerning the amendment.

Act 1280 further provides the commission with statutory authority to administer the changes by issuing rules and investigating complaints. Act 1280 became effective upon Hutchinson’s signature.

The General Assembly reconvened Wednesday to review several proposed legislative amendments offered by Gov. Terry McAuliffe, including changes to the ethics reform bill. The bill, as sent to the governor, changes the lobbyist gift limit from $250 per year from any one source to $100 per gift.

The governor, fearing this would allow legislators to accept an unlimited number of gifts as long as they were less than $100 each, suggested a $100 per year limit from any one source. Lawmakers voiced their own concerns with the amendment, stating its wording could be construed to create a $100 lifetime limit.

Much to the dismay of some members, the General Assembly will meet again on Friday, April 17 to clarify the issue and hold a vote.

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

Gov. Terry McAuliffe plans to offer amendments to the ethics reform bill passed last month. HB 2070 creates a $100 per gift cap to replace the current $250 aggregate limit lawmakers must abide by.

Gov. McAuliffe announced he would like to see a $100 aggregate limit to prevent legislators from accepting repeated gifts from lobbyists.

A legislative session is scheduled for April 15 for lawmakers to consider McAuliffe’s amendments and vetoes.

Photo of Gov. Terry McAuliffe by Edward Kimmel on Wikimedia Commons.

The Government Transparency and Campaign Finance Commission held a day-long meeting on March 26 to consider rule changes and to conclude ethics complaints. The proposed rule changes are to aid in the implementation of ethics reforms passed nearly two years ago.

The new lobbyist gift law sets a $75 limit on some gifts, exempts other gifts, and completely prohibits any gift not otherwise limited or exempted. Lobbyists, public officials, and the public still have questions about how the limits are supposed to be followed.

The commission approved a rule to regulate lobbyist gifts to family members of public officials, but tabled rules about how often a lobbyist can give a $75 gift and whether multiple lobbyists can split the cost of a gift valued at more than $75.

The commission closed about two dozen ethics complaints, with another 220 cases yet to be decided. The next commission meeting is scheduled for June 25, 2015.

On March 9, the Colorado Independent Ethics Commission released Position Statement 15-01, increasing the gift limit from $53 to $59. Public officials or employees are prohibited from soliciting, accepting, or receiving any gift or other thing of value worth more than $59 in any calendar year without giving lawful consideration of equal or greater value in return, unless the gift or thing of value falls under a listed exception.

The gift limit is adjusted in accordance with the United States Bureau of Labor Statistics Consumer Price Index for Denver-Boulder-Greeley every four years. The $59 limit will be recalculated in the first quarter of 2019.

The Campaign Finance Commission has again posted notice of intent to amend, add, and repeal rules relating to lobbying and campaign reporting. Most of the changes were originally considered by the commission in the Fall of 2014.

The amendments are designed to clarify campaign reporting thresholds, permit gift splitting by lobbyists, and require reporting of gifts to family members of officials. The commission will hold a public hearing and consider the rules for adoption on February 25, 2015.

The amendments are available here.

The House of Delegates and Senate each passed versions of ethics reform bills targeting gifts to lawmakers. Both chambers and the governor have agreed on a $100 limit, including meals and travel, as well as the creation of a bipartisan commission to advise members and issue waivers for travel exceeding the limit.

The governor, however, proposed the commission be given subpoena and audit power while the Senate favors the power to inspect records and issue civil penalties. The House version does not include either provision.

Certain lawmakers are concerned the commission, if given too much power, will only serve as a vehicle for political retribution. The House and Senate, in the coming weeks, will work towards a compromise to send to Gov. McAuliffe.

Photo of the Virginia State Capitol by Varmin on Wikimedia Commons.

Missouri House Speaker John Diehl will no longer allow food paid for by lobbyists in committee hearings. Although he made no formal change to House rules, Diehl believes his new policy will be followed because the committee chairmen serve at his pleasure.

Last week, Diehl also banned House committees from meeting outside the Capitol in an effort to curb the practice of lobbyists providing catered meals to committee members as they consider legislation.

As Missouri ethics laws come under scrutiny, Diehl’s actions may be a step in the right direction.

Photo of the Missouri State Capitol by RebelAt on Wikimedia Commons.

As promised, Gov. Tom Wolf has signed two executive orders to bring about ethics reform. The first order bans all employees, appointees, and officials of the executive branch from soliciting or accepting gifts from individuals attempting to influence decisions.

The second creates a prohibition on no-bid contracts to law firms, requiring competitive bidding procedures be used for all legal services contracts.

Gov. Wolf signed the orders immediately following his inauguration address. Both executive orders are effective immediately.

Photo of Gov. Tom Wolf by Bruestle2 on Wikimedia Commons.