The North Dakota Ethics Commission unanimously approved an exception to the gift ban for food or beverage with a value of $10 or less, excluding gratuity, purchased for a public official in conjunction with an informal social and educational event.

The purchased food and beverage must be consumed during the event and a state resident must be present but is not required to be the purchaser of the food or beverage.

This new exception is effective immediately.

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.

Gov. Terry McAuliffe approved changes to Virginia’s gift rules this week, marking the fourth consecutive year lawmakers have adjusted ethics provisions. Among other changes, House Bill 1854, and identical Senate Bill 1312, requires lobbyists to send legislators and executive officials a summary of gifts provided from January 1 through adjournment sine die of the regular session of the General Assembly. The summary must be provided within three weeks of adjournment and does not include the reconvened session.

The bill also eliminates the “common interest” exception to the $100 gift limit on lobbyists for widely attended events. This exception was used to justify luxury suite tickets to football games. An exception is added, however, for attendance at a reception where hors d’oeuvres and beverages are provided and can be consumed while standing or walking.

These changes are effective July 1, 2017, except the gift notification requirement is effective immediately.

Sen. Mike Delph introduced a bill prohibiting Indiana legislators from accepting gifts from lobbyists. The gift ban would include any property with value, including sporting event tickets and anything classified as entertainment.

Along with the gift ban, the bill would require lobbyists to keep a log of all communication between a lobbyist and legislator, or employees of the general assembly, about a legislative matter. The log would be public record and filed weekly. If passed, the bill would be effective January 1, 2018.

The Board of Aldermen passed two bills on October 7 to establish campaign contribution limits and clarify gift reporting.

Board Bill 53 limits campaign contributions in city elections to $10,000 per election cycle. Violations could result in 90 days of jail and a $500 fine. If signed by Mayor Francis Slay, the bill would be effective April 6, 2017, just after the spring mayoral election.

Board Bill 126 requires elected officials to report gifts and travel expenses valued at $375 or more when given by interested persons. Violating the reporting requirement would result in docked pay. Currently, the code requires reporting of gifts exceeding $250, but it is not clear whether public officials are reporting gifts as required.

Photo of the Gateway Arch in St. Louis by Daniel Schwen in Wikimedia Commons.

Sen. Todd Kaminsky and Representative Charles Lavine have introduced a new bill which would amend the penal law relating to unlawful giving. Senate Bill 8169 would close a loophole allowing public officials to receive or give gifts or benefits in excess of $3,000 simply because of their official position.

The bill does not affect campaign contributions, which are already monitored by the Board of Elections.

The legislation is a response to the recent Supreme Court decision in McDonnell v. The United States, which permits officials to receive lavish gifts so long as the gifts are not exchanged for promises to perform governmental acts.

Q. In what ways are my company and I allowed to get involved in the 2016 national party conventions?

A. The opportunities for individuals and companies to involve themselves in this year’s party conventions are legion, but caution must be exercised to avoid running afoul of the many intersecting laws governing your interaction with the delegates and other officials in attendance as well as the committees putting on the conventions.

Convention delegates and those seeking selection as delegates are subject to the federal contribution rules, which means corporations, labor organizations, foreign nationals and businesses, and federal contractors are not permitted to make contributions. However, those permitted to contribute may do so without limits. Delegates who are public officials are subject to the gifts laws governing the office they hold. In other words, federal officials are subject to federal gift laws, state officials are subject to state gift laws, and local officials are subject to any state and local laws applicable to their office.

Individuals and organizations seeking to become involved with the conventions may contribute to the convention host committees. The host committees are nonprofit organizations set up to encourage commerce in and project a favorable image of the convention city. Organizations and individuals may donate money and make in-kind donations to the host committee to defray the costs of the convention, including costs related to promoting the city and welcoming attendees, providing information and samples to attendees, administrative expenses, providing the use of convention facilities, transportation, law enforcement, hotel rooms, accommodations and hospitality for party site selection groups, and for other convention-related facilities and services.

Convention committees are related to the national party organizations and therefore federal campaign finance laws apply. As a result, direct and in-kind contributions using funds from a corporation, labor organization, foreign nations and businesses, and federal contractors are prohibited. Goods and services may be provided to the national committee in the ordinary course of business. Obviously, it’s quite important to distinguish the host committees from the convention committees. Thankfully, both host committees, the Cleveland 2016 Host Committee and the Philadelphia 2016 Host Committee, use the word “host” in their official names.

The national party conventions represent high profile ways to gain exposure both personally and for your organization. This high profile is also why compliance with the rules governing your dealings with committees, delegates, and attendees is so important.

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

Lobbying

Michigan: “Senator Sponsors Gambling Bill Pushed by Wife’s Firm” by Paul Egan for Detroit Free Press

Campaign Finance

“Billionaires Lining Up for Trump Aren’t Sure Where to Send Their Money” by Matea Gold for Washington Post

Utah: “In Audio, Utah Guv Says He’s Available and Will ‘Go Anywhere’ to Meet with Campaign Donors” by Robert Gehrke for Salt Lake Tribune

Vermont: “Vt. Contractors Funnel Money to Politicians” by April Burbank for Burlington Free Press

Ethics

“Social Media Finds New Role as News and Entertainment Curator” by John Herrman for New York Times

“Capitol Hill Newspapers, once a Protected Class, Redefine Themselves” by Nicholas Fandos for New York Times

Arkansas: “AG Mishandled Ethics Proposal, Attorney Claims” by Spencer Willems for Arkansas Online

Missouri: “Lawmakers Pass Ethics Laws but Fail on Gift Ban” by Associated Press for Columbia Tribune

Pennsylvania: “Prosecutors: Longtime Pa. congressman abused his office ‘over and over again’” by Matt Zapotosky for Washington Post

Tennessee: “Tennessee Lawmaker Oversight Lax Compared to Other States” by Joel Ebert for The Tennessean

Former state lawmaker Holli Woodings is leading the campaign for a voter initiative to make large-scale changes to state ethics laws. Changes would include prohibiting political contributions from state contractors as well as cutting contribution limits across the board, banning gifts of more than $50 from lobbyists, and creating a one-year revolving door provision for public officers.

Having collected the required 48,000 signatures in less than two months, Woodings hopes the measure will appear on the November 2016 ballot. Signature collection will continue to be sure enough valid signatures have been gathered before the April 30 deadline.

Meeting today for its annual veto-session, the Virginia General Assembly turned its attention to ethics legislation amendments recommended by Gov. Terry McAuliffe. Lawmakers recently passed identical bills, Senate Bill 692 and House Bill 1362, to roll back some of the changes made last year to restrictions on gifts from lobbyists.

McAuliffe proposed tightening the limits further and prohibiting bundling of gifts from multiple sources to avoid the threshold. The Senate, today, voted against adopting those proposals. The governor must now choose between signing or vetoing the bills as passed by both houses.

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

Gov. Tom Wolf is pushing to extend the range of the gift ban he imposed on executive branch employees after taking office. His plan is to make his executive order a permanent, statutory prohibition and create a similar restriction on gifts to legislators.

While the reception he has received from Democratic lawmakers has been positive, Republicans, who control both houses of the General Assembly, are less eager to make a change. Gov. Wolf has stated he would prefer a complete ban, but is willing to work with legislators on a compromise. With ongoing budget issues, however, ethics reform appears to be taking a back seat for the time being.

State Sen. John Schickel filed a federal lawsuit against the Kentucky Registry of Election Finance and the Legislative Ethics Board aimed at eliminating the state’s campaign contribution limits. The suit claims the $1,000 limit to individual candidates and the ban on corporate contributions are violations of free speech.

The suit also asks the court to strike down ethics rules prohibiting lobbyists from making contributions, prohibiting employers of lobbyists from making contributions while the Legislature is in session, and banning gifts from lobbyists to legislators.

Kentucky House candidate David Watson and Pendleton County judge candidate Ken Moellman Jr. have joined the suit. The state agencies have until October 6 to respond.

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 research team at State and Federal Communications has developed an Inaugurations Guide to help provide our clients with the most up-to-date changes. The guide is based on the November 2014 elections and provides names of the governors, inauguration dates, rules about providing tickets to events, and contributing to inaugural committees.

This guide provides you with yet another compliance reference tool to effectively handle the changing legislation as it pertains to government affairs. For non-subscribers you can gain access to the guide by clicking on the following link, Inaugurations Guide.