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.

Legislators have passed an ethics overhaul capping lobbyist gifts at $75 and eliminating a prior proposal to require lobbying registration for volunteer advocates. The House and Senate voted unanimously for House Bill 142 shortly before adjournment on Thursday, March 28, 2013.

This is the state’s first limitation on gifts to public officials. Exceptions to the $75 limit include committee dinners, dinners for caucuses, and certain lobbyist-funded travel. The $75 cap is per occurrence and per lobbyist.

There is no explicit limit on the number of gifts permitted. As part of the deal, volunteers will not have to register as lobbyists unless they are reimbursed $250 or more in expenses from an organization.

UPDATE: The bill will also remove the $300 lobbyist registration and renewal fee when it becomes effective on January 1, 2014, following approval by the Governor

The Senate approved its version of a House ethics bill on Friday, March 25, 2013. Now the House and Senate are seeking common ground between the different versions of House Bill 142.

The House version of the bill bans most gifts from lobbyists to individual legislators, but allows unlimited gifts to legislative groups. The Senate version imposes a $100 gift cap and erases the exception for legislative groups, but does not limit the number of gifts allowed. The Senate version also erases the House version’s expanded lobbyist registration for unpaid advocates.

Both chambers are expected to appoint a joint committee to negotiate in an effort to reach compromise before the session reaches its scheduled end on Thursday, March 28, 2013.

Photo of the Georgia State Capitol dome by Connor Carey on Wikipedia.

The Pennsylvania House of Representatives has introduced a bill with ramifications on the way lobbyists do business in the commonwealth. Currently, lobbyists may give gifts to anyone, provided there is no understanding the recipient will take an official action as a result of the gift. House Bill 855, however, would do away with this practice and limit the ability of lobbyists to give gifts.

The bill, introduced by representatives from both sides of the aisle, would prohibit public officers and candidates from receiving gifts from lobbyists and principals exceeding $50 in a calendar year. The bill would also limit the hospitality received by public officers and candidates from lobbyists and principals to $500 in a calendar year.

Gifts to public officials has become a hot topic in the commonwealth after reports surfaced saying Governor Tom Corbett has accepted gifts in the past.

When asked whether the governor would support a gift ban, spokeswoman Kelli Roberts said, “Governor Corbett has a tremendous record of transparency and enacting state government reforms, therefore, of course, he would be open to discussing any measures that help to further those goals.”

Bills of this nature usually have a tough time gaining legislative approval, but with the current climate in the commonwealth, House Bill 855 may have a better chance to survive than most.

Seal of the State of Pennsylvania art by Henrik on Wikipedia.

State Representative Scott Drury has recently introduced two bills that would change the way lobbyists operate within the state. House Bill 2957 would change the definition of lobbying, thus causing more people to register as a lobbyist.

The bill would add communicating with a local government to influence action to the definition of lobbying. Therefore, all people who lobby a local government without a lobbying ordinance, the cities of Rockford and Springfield for example, would have to register as a lobbyist with the state. Also, those who lobby in a city with a lobbying ordinance, such as Chicago, would have to register with the state, in addition to their current city registration.

House Bill 2964 is a bill aimed at the state’s current prohibition on gifts. It would prohibit the relatives of a state officer, legislator, or employee from receiving prohibited gifts from a prohibited source (under state law, a lobbyist is considered a prohibited source). The bill also adds a new exception to the ban, adjusts one of the current exceptions, and abolishes another of the exceptions.

If the bill passes, a state officer, legislator, or employee would be allowed to accept admission to and the cost of food and beverages consumed at a reception, meal, or meeting by an organization before whom the recipient appears to speak or answer questions as part of a scheduled program where all members of the General Assembly were invited. This would replace the current exception for food and beverage, which allows for those to be provided if catered or consumed on the premises.

The bill would also limit the amount of travel expenses provided to $111 per day and the travel must be on a carrier available to the general public.

It remains to be seen whether either one of the bills will pass, but should they pass in their current form, it will change how lobbyists do business in the state.

Photo of the Illinois State Capitol by Daniel Schwen on Wikipedia.

Lobbying

“K St. ready for cybersercurity cash grab” by Kevin Bogardus in The Hill.

“Under Contract” in The Hill.

Illinois: “Lobbying push at Capitol as gun issue looms” by Rafael Guerrero in the Chicago Tribune.

Pennsylvania: “Gov. Tom Corbett may be open to a gift ban, spokeswoman suggests” by Jan Murphy in the Patriot-News.

Texas: “Watchdogs: Ethics Loopholes Obscure Lobby Perks” by Jay Root in the Texas Tribune.

Campaign Finance

Colorado: “David Sirota Moderates Discussion On Campaign Finance Reform, Democracy In Colorado” by Matt Ferner in the Huffington Post.

Ethics

California: “STATE LEGISLATURE: Area lawmakers given gifts, trips in 2012” by Jim Miller in the Press-Enterprise.

Florida: “Florida House bridles at Senate’s proposed ethics reforms” by Dara Kam in the Palm Beach Post.

Florida: “Matt Reed: Something to cheer, for a change, as Legislature opens” by Matt Reed in Florida Today.

Hawaii: “Hawaii Legislators Exempt Themselves from State Ethics Code” by Barbara Polk in the Hawaii Reporter.