The Fair Political Practices Commission (FPPC) has given notice of proposed amendments to regulations in Title 2, Division 6 of the California Code of Regulations. The FPPC will make adjustments to the gift and campaign contribution limits to reflect changes in the consumer price index.

In order to provide the adjustment in time for the new calendar year, the November index is used to make the final calculation. The proposed amendments make adjustments for the period from January 1, 2015, through December 31, 2016.

The FPPC will consider the proposed regulations at a public hearing on or after November 20, 2014. The proposed amendments are available here.

A proposed constitutional amendment on the November 4, 2014, ballot will determine whether voters are willing to extend term limits for state lawmakers in exchange for strict ethics laws for lobbyists and corporations. Issue 3 will ban corporate and union gifts to political campaigns, ban lobbyist gifts to legislative and executive officials, and extend term limits for legislators to at least 16 years.

Under the current state constitution, lawmakers typically serve no more than six years in the House and eight years in the Senate. The ballot measure would allow lawmakers to serve 16 years in the same office, or even longer for senators winning special two-year terms after each decennial census and redistricting process.

Adding term limits to the bill helped the ethics package pass the Legislature, but has decreased the popularity of the ballot measure in pre-election polls.

The state ethics commission met September 30, 2014, for the first public meeting following the firing of former Executive Secretary Holly LaBerge. The commission closed 14 complaints against officials and candidates, approved three new advisory opinions, and discussed the agency’s future.

New staff attorneys Robert Lane and Bethany Whetzel have identified nearly 200 open ethics cases needing processed.

The commission will continue to consider recently drafted amendments to campaign and lobbying rules with the hope of passing the amendments by the end of the year. The amendments will clarify campaign reporting thresholds, permit gift splitting by lobbyists, and require reporting of gifts to family members of officials.

Gov. Jerry Brown has vetoed three ethics bills, including one to reduce the value of gifts lawmakers and officials may accept. SB 1443 would have prohibited all gifts from lobbyists and reduced the annual value of gifts from non-lobbyists to $200 per single source. The bill would have also prohibited officials from accepting tickets to concerts, golf passes, and gift cards.

Brown also vetoed SB 1442 and SB 831. The bills would have required more frequent campaign disclosures and forced interest groups to offer more information on sponsored trips for lawmakers.

Brown did sign SB 1441 to ban fundraisers at lobbyists’ homes. Effective January 1, 2015, the definition of “contribution” will include the value of lobbyists’ homes if used for a fundraising event.

Gov. Terry McAuliffe announced the appointment of a bipartisan panel to review state campaign finance, gift, and public disclosure laws. The panel is co-chaired by former Virginia Lt. Gov. Bill Bolling and former U.S. Rep. Rick Boucher, who represented a district in southwestern Virginia.

The governor’s announcement comes just weeks after former Gov. Bob McDonnell was convicted of corruption charges for accepting close to $200,000 of gifts in exchange for public acts.

Other topics on the table include merit selection of judges and redrawing of legislative district lines.

Gov. McAuliffe has asked the panel for a report by December 1, giving the General Assembly time to take action in 2015.

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

Arlington County Board member John Vihstadt is calling for tougher gift restrictions for county employees and officials. In the wake of former Virginia governor Bob McDonnell and his wife being convicted on corruption charges, Vihstadt hopes to place a $100 yearly limit on gifts from any source.

The current Code of Ethics states officials should ensure gifts are not received in exchange for official acts and officials may not accept gifts from individuals with whom the official does business. Vihstadt, running for reelection, argues the current code only described principles of conduct rather than definite rules preventing unethical influence on public officials.

Q. I provided a state legislator with a permissible gift.  I will be sure to include it on my next report.  Is there anything else I need to know regarding proper disclosure of this expenditure.

A. There are sometimes additional disclosure requirements related to an expenditure on a covered state official or employee.  You should be sure to consider two possibilities: a notification to the official or a supplemental report in addition to your routine lobbying report.

A number of states have a notification requirement if you are going to list the name of a covered public official on your lobbying report.  For example, Illinois actually requires two notifications.  You must provide the official with a contemporaneous notification at the time of the expenditure, and a post- notification is required within 30 days after the report has been filed.  In other jurisdictions, the notification is related to whether you must itemize the expenditure or list the official’s name on your report.  In Arkansas, you must list the state official’s name if payment for food (including beverages), lodging, or travel is in excess of $40.  Once the official is named on your report, you must provide him or her with a notification of this at least seven working days prior to the filing of your report.  Pennsylvania imposes a yearly aggregate threshold on the listing of an official on the principal’s lobbying report and corresponding required notification.  This threshold is $250 per calendar year for gifts and $650 per calendar year for transportation, lodging, and/or hospitality (which includes food and beverage).  Please keep in mind that notifications are not filed with the state, but sent to the official named on your report.

Some jurisdictions require an additional report to be filed with the state when making certain permissible expenditures.  For example, if you invite all members of a Maryland legislative unit to a meal or reception, you must extend a written invitation to all members of the legislative unit and register the meal or reception with the Maryland Department of Legislative Services at least five days before the date of the meal or reception.  You must then report the details of the meal or reception to the Maryland Ethics Commission within 14 days after the date of the meal or reception.  In Indiana, you must file a report within 15 days if you make a gift or gifts to a legislative person if the value of the gift or gifts equals $50 or more in one day or together totals more than $250 in a reporting year.

Proper disclosure of a permissible expenditure can include additional steps.  Be sure to check with your jurisdiction’s ethics agency to ensure all disclosure requirements are met.

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

The state ethics commission is preparing to amend rules regarding campaign finance and lobbyist reporting. The campaign finance changes include allowing the commission to raise or lower campaign contribution limits at the end of four-year election cycles rather than every calendar year. The rules would also clarify only contributions to candidates can trigger the $25,000 annual registration and reporting threshold for individuals or entities making contributions.

Lobbying amendments would require reporting for gifts to family of officials and permit gift splitting by multiple lobbyists so long as a single lobbyist does not exceed the $75 limits.

A public hearing on the proposed changes is scheduled for September 30, 2014.

The Senate is considering minor amendments to a bill passed by both chambers 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 giving tickets to most entertainment events, golfing green fees, and spa treatments.

The Washington Legislative Ethics Board has come to a preliminary conclusion as to how to define “infrequent occasions” as it relates to free meals accepted by the state’s legislators. 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 so long as attendance at such a meal is related to the performance of official duties.

When the Legislature failed to pass any pertinent legislation defining infrequent occasions before its adjournment on March 13, 2014, the Legislative Ethics Board took up the issue. During its August 19, 2014, meeting, the board decided in a 5-3 vote to define infrequent occasions as 12 free meals per year. Under the proposed rule, a qualifying meal occurs when the guest would normally be expected to sit down and eat, such as in a restaurant or a private residence, as opposed to a legislative reception.

Other provisions of the rule, including a reporting requirement for legislators accepting free meals, are still under discussion. A final vote on the rule is scheduled for October 21, 2014.

Q. Do gift laws preventing registered lobbyists and employers from giving gifts to public officials, also prohibit gifts to the family members of public officials?

A. Generally, in states that feature a prohibition on lobbyists giving gifts to public officials or employees, the prohibition will extend to members of the public officials’ immediate family. However, immediate family is usually a defined term and will vary by jurisdiction.

For example, Alabama law prohibits lobbyists and employers of lobbyists from offering or providing a thing of value to a public employee, public official, or family member of a public employee or public official. The state defines a family member of a public employee as a spouse or dependent. A family member of a public official is defined as the spouse, dependent, adult child and his or her spouse, spouse’s parent, and siblings of spouse and their respective spouses.

In Kentucky, the General Assembly just passed House Bill 28, which extends the prohibition on gifts to family members of legislators or candidates. Effective July 14, 2014, registered legislative lobbyists will be prohibited from giving gifts to spouses or children of legislators or candidates for General Assembly.

In Pennsylvania, gifts are also prohibited to immediate family members of public officials, employees, or candidates for public office. They interpret immediate family members to include spouses, children, parents, and siblings.

However, not all states include family members in the gift prohibitions. Minnesota’s gift prohibition applies to public officials, employees of the Legislature, and local officials, but it does not extend to their family members.

Before giving a gift to a public official or employee, you should consult the jurisdiction’s ethics commission. Do not expect officials or their family members to know the applicable laws.

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

New restrictions on legislative lobbying expenditures take effect Monday, July 14, 2014. House Bill 28 includes a “no cup of coffee rule” to eliminate the gift exception allowing legislative lobbyists to spend $100 on food and beverage for a legislator.

Legislative lobbyists and their employers are now also prohibited from providing out-of-state transportation or lodging for legislators.

Employers of legislative lobbyists are prohibited from making campaign contributions during a regular legislative session and required to disclose the cost of advertising supporting or opposing legislation.

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 increases from $57 to $58.

This threshold value is adjusted each year by the Board of Ethics to reflect changes in the consumer price index.

 

The Joint Commission on Public Ethics has created a tip line and website allowing the public to report alleged ethical violations by state officials and lobbyists, including improper gifts, conflicts of interest, nepotism, abuse of power, and sexual harassment.

To report violations, call 1-800-87-ETHICS or visit http://reportmisconduct.ny.gov.