North Carolina Appellate Court Sends Lobbying Case Back to Trial Court - State and Federal Communications

April 3, 2013  •  

North Carolina Appellate Court Sends Lobbying Case Back to Trial Court

North CarolinaA state appellate court has ruled that a trial court judge must reconsider the state’s large fine for lobbying law violations. Don Beason, once considered one of the state’s most influential lobbyists, was originally fined $111,000 for a violation of the state’s disclosure policy for lobbyists. This fine was eventually reduced to $30,000 after the court ruled it was too large. Beason was working on overturning the state’s “Buy America” law for Sigma Corporation, a New Jersey company who imports foreign-made iron and steel.

The state claims Beason was paid with money funneled from an Indian iron exporters’ trade association and other companies through Sigma and Beason knew of this arrangement and failed to disclose. The trial court ruled that state law defines a lobbyist as someone who communicates directly with legislators or their employees and there was no evidence Beason directly contacted anyone for these clients supposedly funneling money through Sigma.

The appellate court however found the trial court failed to consider a second aspect of Beason’s case; whether Beason’s activities for the client constituted lobbying. The trial court must rule on that issue and then can determine whether the state has the power to fine Beason.

There is no time frame on when the trial court will hear the second part of this case.

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