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.

Ohio Reps. Nick Celebrezze and Ronald Gerberry announced plans last week to introduce legislation creating a campaign contribution blackout for the attorney general’s office. New legislation would prohibit contributions to the attorney general and to any party-endorsed candidates for the office while the office is reviewing bids on contract work.

Celebrezze believes a blackout period will help eliminate the appearance of impropriety. Attorney General Mike DeWine, however, claims enforcement of the blackout periods makes the process inherently more political. Moreover, he said contributions have not influenced his decision to award contract work.

On Wednesday, April 9, the Ohio House of Representatives passed a large piece of Gov. Kasich’s mid-biennium budget proposal. Prior to passage, House Republicans added numerous amendments to House Bill 483; it is now more than 800 pages long.

One amendment voids administrative rule 111-3-05 and changes state campaign finance law by lifting the disclosure requirement for corporations and labor organizations making independent expenditures. It also allows foreign-owned corporations and corporations with state contracts to spend money promoting or opposing state candidates.

Former Secretary of State Jennifer Brunner issued the rule in 2011 and fears its repeal will make it easier for national political interests to operate state-based Super PACs.

The bill passed the House by a primarily partisan vote of 57-33 and will now be sent to the Senate for consideration.

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

State school board member Bryan Williams resigned after allegedly violating provisions of the state ethics laws by lobbying the government for private interests. The law prohibits an elected member of a state board or commission from receiving compensation for services he or she performs personally on a matter before any state agency.

When first appointed to fill a vacant seat, an exemption in state law allowed Williams to simultaneously serve in a public position while advocating as a lobbyist. Upon his election in 2012, however, the exemption no longer applied. The Ohio Ethics Commission has not confirmed any investigation or future legal actions.

The Ohio Ethics Commission issued a new rule clarifying when another party may pay or reimburse a public official or employee for travel expenses. A public official or employee may accept a thing of value if it “is not of such a character as to manifest a substantial and improper influence on the traveler with respect to that person’s duties.”

A two-prong test has been put in place for determining whether travel expenses or reimbursements are of such character.

The rule overturns portions of two previously issued Ohio Ethics Commission Advisory Opinions. It also requires public officials or employees to disclose the source and amount of all travel expenses and reimbursements.

Rep. Hagan introduced HB 339 last week. HB 339 would enact section 105.43 of the Revised Code and require the capitol square review and advisory board to issue identification badges to all lobbyists seeking entrance to capitol square. Each badge would show a lobbyist’s name, a photograph of the lobbyist, clearly state the term “lobbyist” on the face of the badge, and list the lobbyist’s employer or employers.

The bill also requires each lobbyist to carry a card stating the name of the person or persons whose interest the lobbyist actually represents; said card must be shown to any member of the general assembly requesting to see it.

A bill introduced October 10 by Rep. Robert Hagan proposes to amend sections 101.72, 101.73, and 101.75 of the Revised Code. H.B. 295 would require a legislative agent to report to the Joint Legislative Ethics Committee compensation paid to the agent by the agent’s employer. This would be an additional requirement, as the current sections of code require the reporting of expenditures only.

The bill was co-sponsored by Reps. Pillich and Foley.

Photo of the Ohio Statehouse by Wikimedia Creative Commons.

Steve Friday of the Capitol Square Review and Advisory Board announced Lobbyist IDs are not yet ready for pickup. Those who received an erroneous email indicating anything to the contrary should disregard it.

The board is waiting on supplies before the remainder of the ID cards can be processed. An email notification will be sent out when the IDs are ready.

Last week on Friday, June 21, 2013, fourteen of our State & Federal Communications’ employees, including five interns, visited the East Akron YMCA on South Main Street to celebrate United Way Day of Action. After a warm welcome from Director and Vice President of Community Development Tony Grimes, the State & Fed team brought out the rollers, paintbrushes, and cans of “Legendary Blue” paint and began the day of service.

Dressed in t-shirts that read “Live United,” each member of State & Federal Communications pulled his or her own weight in work; all participated in painting the gymnasium walls and doors as well as numerous hallways. However, the volunteers never felt the task to be daunting and instead thought of it as more of a privilege.

“Though I have lived in Akron my whole life, I am often introduced to places in this community that could use a little assistance. I am always eager to help in any way possible, and I am thankful for United Way Day of Action in giving me the opportunity to do just that,” recalls Research Intern Cristina Dickos.

State & Federal Communications has participated in United Way Day of Action for several years, and each year the company looks forward to spending a day outside the office, showing that our work reaches beyond the desk.

Marketing Intern, Joanna Kamvouris, shared her sentiments: “Day of Action gave me a chance to appreciate what I sometimes take for granted and help brighten the day of children and workers within our Akron community,” Kamvouris said. “The work we completed as a team went beyond applying bright blue paint to the walls along the East Akron YMCA. We came together and made a difference that the children will see every time they visit the YMCA.”

House Speaker William G. Batchelder and Representative Ron Amstutz introduced a substitute for House Bill 59, Governor Kasich’s budget bill.

Governor Kasich’s version of the bill would have overhauled the state sales tax by subjecting most services, including lobbying and consulting services, to the tax.

The substitute version of the bill eliminates those changes, leaving the current sales tax on services unchanged. If the substitute bill passes, lobbying and consulting services will remain untaxed in Ohio.

Ohio has increased its campaign contribution limits. Individuals, political action committees (PACs), and political contributing entities (PCEs) may now contribute up to $12,155.52 to any one statewide, senate, or house campaign committee during a primary or general election period, or to a PAC or PCE during a calendar year. An individual may contribute this same amount to the state candidate fund of a county political party in the individual’s county of residence. The previous limit was $11,543.70.

Additionally, the limit individuals, PACs, and PCEs may contribute per calendar year to any one state candidate fund of a state political party increased to $36,466.56 from $34,631.11, and to any one legislative campaign fund, $18,233.28, up from $17,315.55.

These limits are effective beginning February 25, 2013 until February 24, 2015.

Lobbying and consulting services could soon be subject to sales tax under Governor John Kasich’s budget proposal. House Bill 59, the governor’s expansive budget bill, proposes to decrease the state sales tax rate, but makes up for lost revenue by increasing the services subject to sales tax. All service transactions would be subject to the tax unless specifically exempted in the bill, including legal and accounting services.

You can view a list of the services that will be covered by the sales tax here.

While Governor Kasich predicts lobbyists will attempt to remove the tax on their industry from the budget bill, a Florida Institute of CPAs lobbyist claims it’s not just self-interest–determining who is taxed and who pays can be tricky when lobbying firms hire both accountants and lawyers to assist with projects.

If passed, the sales tax will apply to all non-exempt services rendered on or after September 1, 2013.

Akron City Council has increased the city’s campaign contribution limits, to take effect for the council elections in 2013.

The limit for mayoral and at-large candidates will increase to $650 from $450, and the limits for ward council candidates will increase to $400 from the current $200 limit.

The limits were previously raised in February 2011.

State and Federal Communications is excited to be sending 11 people to the Council on Government Ethics Laws (COGEL) 34th Annual Conference in Columbus, Ohio. We are excited to have the conference in our home state capitol and we are helping every way we can – setting up, breakfast table topic leaders, a panelist for a breakout session, helping with social media, and more! It should be an exciting conference.

Maybe we’ll see you there?

Here is COGEL’s description of the conference:

JOIN US

COGEL and its Ohio Partners invite you to the 34th Annual Conference in COLUMBUS, Ohio! This thought provoking and educational conference is an opportunity to celebrate US — professionals in the fields of ethics, campaign finance, lobbying, elections and freedom of information.

FOCUS

With dynamic sessions, stimulating guest speakers, challenging discussions and endless opportunities for networking, this year’s COGEL Conference is not to be missed! The program includes elements of communicating your mission, understanding new technology, and catching up on legislation and litigation.

BONUS

There’s always something fun happening in Ohio’s capital city. With a lively arts scene, plenty of restaurants, shops, sports and entertainment venues, you don’t have to venture far to have a good time. This year’s Sunday evening reception will take place in the beautiful and historic Ohio Statehouse, directly across the street from the Sheraton Hotel at Capitol Square.