The Washington D.C. Council approved a bill in a first full council vote that aims to restrict political contributions by government contractors doing business with the district.

The bill also addresses improper coordination between campaigns, political action committees and independent expenditure committees.

The pay-to- play component of the bill would ban campaign contributions by businesses seeking contracts of $250,000 or more.

The council votes again on the bill in December. If approved and funded, the bill would take effect on October 1, 2019.

Pay-to-play provisions would take effect after the November 2020 general election.

The Washington D.C. Council Committee on the Judiciary and Public Safety unanimously passed a bill that aims to restrict political contributions by government contractors doing business with the district.

The bill also addresses improper coordination between campaigns, political action committees and independent expenditure committees.

The pay-to-play component of the bill would ban campaign contributions by businesses seeking contracts of $250,000 or more.

If passed by the full council, the bill is subject to appropriation and, if funded, would take effect on October 1, 2019.

Pay-to-play provisions would take effect after the November 2020 general election.

State and Federal Communications has prepared a new white paper with a comprehensive examination of pay-to-play laws and the characteristics of an effective pay-to-play compliance program.

This white paper is useful for politically active business entities who have, or are seeking, to obtain government contracts amid the complex regulatory scheme of pay-to-play laws.

A strong pay-to-play compliance program can mitigate your risks and facilitate a smooth procurement experience that stays within the boundaries of all regulations.

Have you ever asked:

• Is quid pro quo considered bribery in exchange for a specific contract?
• To whom may we contribute?
• What should we be aware of while negotiating a contract?

This white paper includes:

• Pay-to-play categorization: focus on restriction, disqualification, or disclosure
• How and why to implement best practices for making contributions
• Recent trends in ethical business contributions and procurement laws

If you are attempting to obtain a local or state contract, this free white paper is a must-read.

Click here for downloading instructions – and ensure you and your team can say “I Comply!”

The Fort Wayne City Council passed another bill related to pay-to-play practices.

Similar to last year’s pay-to-play ordinance, the City Council overrode Mayor Tom Henry’s veto in a 7-2 vote.

The newly passed measure, prohibits business entities, with any officer, partner, or principal with more than 10 percent ownership who have donated more than $2,000 to a campaign of someone with ultimate responsibility for awarding city contracts, from bidding on city contracts.

Before I can make a political contribution using my own funds, my employer requires that I obtain permission first.  Can my employer legally do this?

Yes, employers may require employees to seek preapproval before making personal political contributions. Not only can your employer require this, it’s smart business to do so. Employers may even require preapproval from family members of employees.

This preapproval requirement has evolved as a result of the increased number of jurisdictions enacting pay-to-play laws. A seemingly innocuous contribution by an employee could result in the loss of government contracts, fines, and a ban on future contracting. Criminal sanctions may apply when repeated violations occur. By requiring pre-approval, your employer can properly vet the contribution for compliance with a jurisdiction’s pay-to-play law, including disclosure requirements.

In a majority of jurisdictions, employees covered by pay-to-play laws include officers, partners, directors, senior management, salespersons, and their spouses and dependent children. In Pennsylvania and Kentucky, all employees are covered in the instance of a no-bid contract.

Requiring preclearance of employee personal political contributions is certainly more preferable than imposing a ban on employee contributions, which could result in a violation of applicable labor laws. Various jurisdictions bar employers from retaliating against employees for engaging in political activities, which can include everything from participating in a political rally to making campaign contributions. Even though an employer can require preapproval, an employer cannot directly or indirectly affect an individual’s employment by means of discrimination or threat of discrimination based on the individual’s personal political contributions.

Don’t miss Nola’s October 2022 LobbyComply Pod episode for more information on this important issue.

The Cook County Circuit Court upheld county pay-to-play limits on Tuesday, ruling against County Assessor Joseph Berrios.

Berrios challenged the county’s campaign contribution limits for those who have sought official action from the county as unconstitutional. He also argued only the state Legislature has the authority to set contribution limits; Judge Sanjay Tailor disagreed.

Local governments are permitted to enact laws governing campaign finance, provided they do not interfere with voter registration and election mechanics.

Berrios is expected to appeal.

Pennsylvania Governor Tom Wolf announced his Citizen First ethics reform plan this week. Gov. Wolf, who took office in 2015, has been a proponent of broad ethics and government reform.

The Citizens First ethics reform plan includes a gift ban for all public officials. Gov. Wolf already banned members of his administration from accepting gifts but is seeking a broader permanent ban to stop politicians from accepting unlimited gifts.

Along with a gift ban, the plan includes campaign finance reform creating contribution limits, restriction on political action committees, and heightened reporting requirements.

The proposed campaign finance reform would also include pay-to-play provisions requiring the disclosure of campaign contributions made by entities seeking contracts with the state.

On March 2, 2018, Assembly Bill 9968 was introduced by Assemb. Sandy Galef.

The bill prohibits business entities with state contracts of more than $15,000 from making monetary, in-kind contributions, or a pledge of contribution in excess of $1,000 to an individual who holds a position of an elected state public office, a candidate for an elected state public office, or a state, county, or municipal political party, if the contract will be voted on or approved by such an individual.

The prohibition is for the preceding 12-month period before a contract is awarded. If passed, the bill will become effective 90 days after becoming law.

Cook County Assessor Joe Berrios is asking Circuit Court Judge Sanjay Tailor to void the county’s pay-to-play provisions. Current ethics rules limit campaign contributions from those who seek official action from the county.

Berrios argues only the state has the authority to limit campaign contributions, while the county maintains it is permitted to set more-restrictive limits to avoid impropriety.

Berrios was fined $41,000 in January (after receiving warnings from the Board of Ethics last summer) for taking 41 contributions exceeding pay-to-play limits from property tax appeal lawyers affected by the decisions of his office.

As he waits for a court ruling, Berrios continues to accept contributions exceeding county limits.

Pictured: Cook County Assessor Joe Berrios

Washington D.C. City Council is reviewing four bills that would impose new regulations and restrictions on political contributions.

Three bills under review would add various pay-to-play provisions. A fourth, which will be voted on by City Council on January 9, would institute public campaign financing for local elections.

The legislation, however, is not without its opponents.

Mayor Muriel Bowser announced she would not fund a public financing program. The public finance program, if passed by the Council, would not be in place until 2020.

Council Member David Grosso said if Bowser does not choose to fund the bill in her budget, the council can allocate money for the program.

The Fort Wayne City Council overrode Mayor Tom Henry’s veto of pay-to-play ordinance. Opponents of the ordinance are concerned about the constitutionality of the new law.

The ordinance will prohibit contractors who have donated more than $2,000 a year to an elected official’s campaign from bidding on city projects.

The restriction includes natural or legal persons with a 7.5 percent or more interest in the bidding entity and extends to a bidder’s spouse and any children living in the same household.

The ordinance will become effective on January 1, 2018.

At its November 27 meeting, the San Francisco Ethics Commission gave final approval to recommend and transmit to the San Francisco Board of Supervisors its Anti-Corruption and Accountability Ordinance.

The ordinance would create or expand certain pay-to-play prohibitions on political contributions, institute new disclosure requirements, create local rules for reporting behested payments, and create new rules regarding conflicts of interest.

The Commission will transmit its recommendations to the Board of Supervisors, where at least eight votes will be required to adopt the proposal.

At its November 27 meeting, the San Francisco Ethics Commission gave final approval to recommend and transmit to the San Francisco Board of Supervisors its Anti-Corruption and Accountability Ordinance.

The ordinance would create or expand certain pay-to-play prohibitions on political contributions, institute new disclosure requirements, create local rules for reporting behested payments, and create new rules regarding conflicts of interest.

The Commission will transmit its recommendations to the Board of Supervisors, where at least eight votes will be required to adopt the proposal.

The Fort Wayne City Council approved a pay-to-play ordinance on November 28. The ordinance will prohibit contractors who have donated more than $2,000 a year to an elected official’s campaign from bidding on city projects.

The restriction includes natural or legal persons with a 7.5 percent or more interest in the bidding entity and  extends to a bidder’s spouse and any children living in the same household.

Mayor Tom Henry has 10 days to sign or veto the legislation.

If approved, the ordinance will become effective on January 1, 2018.