The Hawaii State Ethics Commission issued four Informal Advisory Opinions pertaining to a state official’s receipt of complimentary event tickets. A state agency may have a legitimate state interest in giving an agency board member a ticket to an agency event. In that scenario the tickets are not considered “gifts” under Hawaii gift law. Rather, they are “state assets” and distribution must be evaluated in accordance with the fair treatment law under the State Ethics Code.

Agency board officials may accept two complimentary tickets per agency event – one for the official and the other for the official’s spouse or significant other. An official’s use of complimentary tickets for additional personal guests constitutes unfair compensation and is, therefore, prohibited. Moreover, transferring complimentary tickets to family members to attend events in the official’s place is also a likely violation of the fair treatment law.

City Council instructed the city’s lawyers to draft an ordinance increasing the gift limit to $150 for gifts provided by bidders, contractors, and other restricted sources. Currently, people doing business with the city can provide gifts to city officials valued at $100 or less per calendar year.

Recently, the Los Angeles Ethics Commission recommended curtailing gifts to city officials, hoping to boost public confidence in government. The commission’s recommendation would have extended the current ban on gifts from lobbyists to all people with a financial stake in city decisions.

Photo of the Los Angeles City Hall by Brion Vibber on Wikipedia.

Q. I am a registered lobbyist with a personal relationship with a state legislator.  I would like to give her a gift for a special occasion.  Is this permissible?

A. As a registered lobbyist, you should always be aware of the restrictions placed on you for providing things of value to a state official.  A number of jurisdictions have strict “no gift” laws in place.  Wisconsin prohibits a lobbyist from providing things of pecuniary value to a legislator with very limited exceptions.

A gift can be permissible based on the personal relationship between the lobbyist and the legislator.  Texas and Florida allow gifts between a registered lobbyist and a legislator if they are related to a certain degree.  Please note that jurisdictions can examine the circumstances of the gift such as the extent of the relationship between the lobbyist and the legislator.  The lack of a history of gift giving between the parties or evidence of a personal relationship may render the gift impermissible.  The federal “friendship” exception also does not apply to state and local jurisdictions.

A registered lobbyist may be allowed to give a gift based on the special occasion or reasoning behind it.  In Massachusetts, a lobbyist may give a legislator gifts on certain occasions of religious or personal significance.  Connecticut allows gifts for certain major life events.  Be sure to confirm if any occasions are excluded.  Massachusetts does not consider a birthday to be an occasion of personal significance!

A gift may not be prohibited even if you are a registered lobbyist.  Confirm whether an intended gift is permissible with your state’s ethics office.

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 city Board of Ethics has proposed new gift regulations designed to clarify what is and is not permitted under the city code. The proposed limits would allow city officers and employees to accept gifts of up to $200 per year from a single source, including cash gifts up to $50. Currently, only gifts of substantial economic value given with the expectation of influencing the public official or employee are prohibited.

City watchdogs have criticized the proposed limits as being too lenient, but ethics board member Sanjuanita Gonzales suggested those limits could be subject to change after public input.

A hearing on the proposed regulations is scheduled for November 20.

Honolulu Mayor Caldwell and his transitional team came under the review of the city Ethics Commission recently for potential violations of gift law. The Commission found no violations due to a lack of established ethical guidelines but placed restrictions on future donations for inaugural or transitional purposes.

Safeguards put in place to avoid pay-to-play concerns include mandatory public disclosure of all donations, including the amount of and use for each, prohibition against asking current or prospective city officers or employees to solicit or make contributions, and requiring each donor/contributor to confirm he or she is not a registered lobbyist and has no future business with the city in which the administration is likely to be involved.

The Commission further held donations used to support legitimate government purposes, such as the transition between administrations and the official inaugural ceremony, are gifts to the city.

The city is seeking to upgrade the city’s ethics code. Several changes have been proposed, including expanded penalties for violations, expanding the scope to cover people, adding a revolving door provision, and increasing the specificity of the gift definition.

Once finalized, approval by city council is expected early next year.

Photo of Spokane by Mark Wagner on Wikimedia Commons.

The number of municipalities and regional governments our research associates track continues to grow. We now cover more than 230 municipalities and local governments. This is part of a continuous effort to better serve the needs of our clients.

We recently added seven municipalities for which our clients will find comprehensive, timely, and accurate information that includes: complete calendars of reporting deadlines; critical statutory citations; extensive directories of contact information; summaries of each state law; detailed reference charts on goods and services contributions; highlights of every statute; copies of all required forms; and much more.

The new municipalities are:

Surrey, BC
Lancaster, CA
Miami-Dade County Public Schools, FL
Pinellas County, FL
DuPage County, IL
Hilliard, OH
York County, PA
Sioux Falls, SD

Q. I will be attending the NCSL conference this summer.  Do regular gift limits on expenditures for public officials apply during this event?

A. The answer will vary depending upon whether you are paying for a private event or sponsoring a conference-affiliated event.  Taking a legislator to dinner, paying for cab fare or other transportation, or giving him or her a ticket to a ballgame are not considered part of the official conference agenda and normal gift limits will apply.  Also, for private events, the answer will depend upon whether you or your company are registered as a lobbyist or lobbyist employer.  In most instances, states have more stringent gift laws applicable to lobbyists and lobbyist principals.

Many states have gift limit exceptions specifically carved out for expenditures at national conferences to which all members of the legislature are invited. Further, State Night events at NCSL are considered part of the conference agenda; therefore, when national conference gift exceptions exist, they will apply.

Although a State Night sponsorship may be permissible, it is important to determine if and when the expenditure must be disclosed.  Know the reporting requirements before the event, because an attendee list may be required. The reporting implications range from simple aggregate disclosure to detailed reporting where the name of every legislator attending must be listed.

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 Legislative Ethics Commission has renewed its 2012 recommendations for several changes to the code of legislative ethics.

The recommended changes include:

• requiring employers of lobbyists to report the cost of advertising supporting or opposing legislation that appears during a session of the general assembly, if the cost is paid by an employer of lobbyists or a person affiliated with an employer;

• prohibiting employers of lobbyists and PACs from making campaign contributions to legislative candidates or legislators during a regular session of the general assembly, and prohibiting lobbyists from directly soliciting contributions for an election campaign of a legislator or legislative candidate;

• repeal the provision allowing each lobbyist and employer to spend up to $100 annually on food and beverages for each legislator and his or her immediate family, and prohibit lobbyists and employers from paying for out-of-state travel, food, or lodging expenses for legislators or candidates; and

• limiting the interaction between lobbyists and candidates who have filed to run for election to the general assembly, who are currently not subject to the $100 limit on food and beverage or prohibition on receiving anything of value from a lobbyist or employer.

City Council approved changes to the ethics code setting limits on gifts to city officials and employees on Thursday, May 30, 2013. Ordinance No. 130249 prohibits an official or employee and their immediate families from knowingly accepting any gift having a value in excess of $1,000 from any person or business with a substantial interest in legislative or administrative actions.

Gifts worth more than $200 must be reported quarterly by the city official or employee. Previously, reports were due annually and there was no limit on gifts.

The bill becomes effective in 10 days unless vetoed by the Mayor.

Q. My company is involved in an event where a meal and other gifts may be provided to public officials.  How do I know if this is permissible?

A. You must consider a number of issues any time you want to provide a gift to a public official.  In addition to consulting your company’s policies, you should answer the following questions:

• Is it a gift?  States often have exceptions to the definition of gift.  Arizona does not consider an expenditure for food, beverage, travel, or lodging to be a gift under state law.  A number of states do not consider things of value provided on the basis of a personal relationship or items of de minimis value to be gifts.
• Who is the giver?  Lobbyists are often subject to more stringent gift restrictions than non-lobbyists.  Florida prohibits any gifts from lobbyists to state officials and employees with very few exceptions.  However, if you are not registered as a lobbyist, you are permitted to give any gift if it is not given to influence any official action.  California imposes different gift limits; the limit is $10 or less per month for lobbyists and $440 or less per year for non-lobbyists.  Additional restrictions could apply if your company is a state contractor.  Connecticut does allow limited gifts from lobbyists and non-lobbyists.  However, state contractors must certify no gifts were made under certain circumstances.
• Who is the recipient?  The permissibility of a gift can depend on the branch of government or the seniority of the official or employee.  Maryland legislators may only accept food and beverage from lobbyists in very limited circumstances.  Executive branch officials may accept food and beverage if they are in the presence of the lobbyist. Delaware only restricts cabinet secretaries, division directors, and the governor’s professional staff from accepting gifts from lobbyists.

If you are anything less than 100% sure a gift is permissible, consult the state’s ethics agency.  Do not ask the official or employee involved!  He or she may not be familiar with the nuances of the state’s gift law.

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.

Governor Nathan Deal signed two pieces of ethics legislation aimed at increasing public confidence in state government on May 6, 2013. House Bill 142 restores rulemaking powers to the Georgia Government Transparency and Campaign Finance Commission, clarifies and modifies classification as a lobbyist, and sets a gift limit of $75 per lobbyist gift.

House Bill 143 requires more campaign transparency for local races and allows for public notice of any campaign contributions given to members of the General Assembly leading up to the start of the legislative session. The bills become effective January 1, 2014.

The New York Joint Commission on Public Ethics (JCOPE) unveiled proposed changes to the ethics rules Tuesday, which could make it easier for lobbyists to conceal their donors and funders from the public. At its monthly meeting, JCOPE proposed changes to the gift regulations and the recently enacted source of funding regulations.

Under the source of funding regulations, lobbyists must disclose the names of anybody who provided them with funding in excess of $5,000 for lobbying purposes, but only if they meet a certain threshold. The current rules allow for a waiver of this requirement only if there is a substantial likelihood of harm. Under the proposed change, JCOPE would lower the standard to a reasonable likelihood or probability of harm.

Executive Director Ellen Biben said the current standard may be unconstitutional, thus necessitating the change. “The substantial likelihood standard may be constitutionally too high,” Biben said. “We agree.”

In the proposed change to the gift ban, JCOPE puts a concrete dollar amount on the term “nominal value.” Under current law, a lobbyist is prohibited from giving a gift to a public official and gift is defined as something worth more than nominal value. However, there is no dollar figure attached to the current definition of nominal value.

Under the proposed definition, nominal value will be defined as an item or service with a value of $10 or less. Therefore, if the proposed change is enacted, lobbyists will be prohibited from giving a public official a gift with a value in excess of $10.

In order for the rules to go into effect, JCOPE commissioners must approve the proposals. There is no set time table on when the commissioners will review the proposals and make a decision on their enactment.

From the States and Municipalities:

California – Legislative Staffers Lavished with Gifts

Indiana – Indiana Speaker Pro Tem Turner Defends Supporting Company Daughter Represents as Lobbyist

Kentucky – Kentucky Group Is the PAC That Couldn’t Shoot Straight

Montana – Montana House Panel Kills Bill to Disclose ‘Dark Money’ in Campaigns

Nebraska – Golf Tops List of Gifts Dave Heineman Reported

New Jersey – Bergen County Freeholders Introduce Plan to Relax Pay-to-Play Restrictions

New Jersey – In N.J. Governor’s Race, Christie and Buono Choose to Keep Some Donors Secret

New York – Sandra Lee OK’d for Takeoff

Ohio – Cuyahoga County Prosecutor McGinty Pursues Corruption Charges against Those Brought Down in Federal Probe

Pennsylvania – Pennsylvania Turnpike Scandal Has Some Eyeing a Pay-to-Play Law

Pennsylvania – Senate Passes Three Bills to Strengthen Transparency and Efficiency in State Government

South Carolina – National GOP Campaign Arm Withdraws Sanford’s Financial Support

Tennessee – Bill Fails That Would Raise Campaign Contribution Limits, Allowing Direct Corporate Donations

Texas – Exotic Trips, Luxury Gifts Are Perks of Elective Office

State and Federal Communications produces a weekly summary of national news, offering more than 80 articles per week focused on ethics, lobbying, and campaign finance.

News You Can Use is a news service provided at no charge only to clients of our online Executive Source Guides, or ALERTS™ consulting clients.