On July 28, 2011 the Chicago City Council passed a new ethics reform ordinance. The ordinance is part of Mayor Rahm Emanuel’s efforts to provide more government transparency.

The new ordinance includes five key provisions. First, it creates a searchable online system for lobbyist registration and reporting. Second, it adds the term “lobbyist” to the group of people subject to the $50 gift restriction per single non-cash gift and $100 aggregated gift limit per each calendar year. Third, the new ordinance prohibits city employees, officials, or their businesses from applying for or receiving loans from lobbyists.

Fourth, the ordinance amends the semi-annual lobbyist activity report form to require lobbyists to disclose all campaign contributions to city elected officials and city employees running for office. Lastly, the ordinance codifies the revolving door provision created by Mayor Emanuel’s May 16, 2011 executive order.

Photo of the Chicago River by Robert S. Donovan on Wikipedia.

On Wednesday July 6, 2011, Mayor Rahm Emanuel will introduce a new ethics ordinance containing “the most comprehensive lobbyist disclosure database in the nation.”

Key components of the proposed ordinance include the creation of a searchable real-time database, a $50 gift limit per single non-cash gift given by a lobbyist, a $100 aggregate gift limit per calendar year on gifts from lobbyists, a prohibition on city employees, officials, or their businesses receiving loans from lobbyists, an amendment to the semi-annual lobbyist report form requiring lobbyists to disclose campaign contributions, and a codification of an executive order issued by Mayor Emanuel in May which bars employees from lobbying the city after leaving city employment.

Federal:

Colbert Declares Victory at FEC

FEC Limits Lawmakers’ Fundraising for Super PACs

From the States and Municipalities:

Alabama

Gambling Trial Highlights Fees Paid to Legislators

Arizona

Justices Strike Down Arizona Campaign Finance Law

Florida

Judge Strikes Down Florida Campaign Finance Matching Law

Illinois

Jury Finds Blagojevich Guilty of Corruption

Massachusetts

Ethics Changes Generate Talk as Proposal to Require Lobbyists to Wear ID Badges Is Likened to Nazi Germany

Massachusetts

Special Education Director Said to Siphon $10 Million

Missouri

Missouri Lawmakers Eat for Free

Nevada

Tougher Nevada Campaign Money Laws Come into Play

New York

New Contribution Rule Limits Assignments to Elected Judges

Oklahoma

Oklahoma Ethics Commission Reprimands NRA Lobbyist

Wisconsin

Wisconsin Justices in Altercation

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Only lobbying activities that are associated with a reportable expenditure require the completion of the activity detail report.

The Illinois Secretary of State will be modifying the reporting process in the coming weeks to reflect this change. Activity detail reports for activity not associated with an expenditure that were previously filed do not need to be amended to reflect this change.

The reporting of lobbyist activity associated with a reportable expenditure remains unchanged.

Photo of Illinois Secretary of State Jesse White courtesy of the Illinois Secretary of State website.

Effective January 1, 2011, political committees were required to file a quarterly report for the first time.

Due to a large number of non-filings by committees required to file this report, the Illinois Board of Elections is granting a one-time amnesty from civil penalty to any political committee that files their quarterly report on or before June 11, 2011.

Failure to report by June 11, 2011 will result in a formal complaint filed against the committee and civil penalties of up to $5,000.

The three reissued executive orders include a ban on political contributions to the mayor from the owners of companies that do business with the city, an order requiring city employees to comply with hiring oversight rules, and an order reaffirming that it is the duty of every city employee to report wrongdoing to the inspector general.

The first new executive order prohibits new appointees from lobbying city government for two years after leaving the administration, bars lower level employees from lobbying the departments or agencies in which they work, and bars appointees to boards and commissions from lobbying the board or commission on which they sit.

The second new executive order protects city employees from being pressured to give gifts or make political contributions to their superiors.

The third new executive order prohibits city lobbyists from making political contributions to the mayor.

Q: Now that Illinois has semi-monthly reporting, are there any changes to the contents of the report?

A: As of January 1, 2011, Illinois requires disclosure reports to be submitted on the fifth and 20th of each month.  This new schedule began on January 20, 2011.  The Secretary of State’s Office issued a 2011 Expenditure Report Filing Guide concerning how to disclose reportable activity on the Activity Detail Report.  This guide contains some changes for client or lobbying entity reporting.

Individual expenditures made on behalf of covered officials must be itemized with expanded information.  Lobbying entity reports must itemize for each individual expenditure or transaction:

• The name of the official for whose benefit each expenditure was made;
• The name of the client on whose behalf the expenditure was made;
• Whether the expenditure was made on behalf of a client;
• The total amount of the expenditure;
• A description of the expenditure;
• The vendor or purveyor to whom the expenditure was made;
• The address and location of the expenditure if the expenditure was for an intangible item such as lodging;
• The date on which the expenditure occurred; and
• The subject matter of the lobbying activity, if any.

As in previous years, the expenditure reports must also include reporting of lobbying activity that is unrelated to an itemized expenditure.  This requirement is satisfied by identifying:

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Because of a technical malfunction, the Illinois Secretary of State‘s reporting system was unavailable from January 16th until early on January 18th. Accordingly, the Index Department has extended the deadline for reporting expenditures made in the first half of January.

Instead of being due on January 20th, those required to file reports now have until January 23.

The enhancements to the system are aimed toward improving transparency and easing the public’s fear of “back room” politics.  It is no coincidence that the lobbying law changes come at the same time the state is strengthening ethics rules in other arenas.  The state recently passed new disclosure requirements for contacts with procurement officials.  Additionally, Illinois’ campaign finance laws will feature contribution limits in 2011 and quarterly PAC reporting.   The improvements to the state’s lobbying regulations are part of an overall climate of increasing disclosure around the United States.  Several other states, including Utah and Georgia, have made similar changes in state lobbying law this year.

The first change to the rules, which is already known by most people impacted by it, relates to the registration fee.  Illinois initially sought to increase this fee to $1,000 per lobbyist and per organization employing a lobbyist.  Thus, a company with two state-level lobbyists would have been charged $3,000 per year.   The ACLU sued for and was granted an injunction on this fee.  Essentially, the state agreed Illinois could not demonstrate the increase in cost was necessary to administer the Lobbyist Act.  Additionally, the ACLU had raised a First Amendment establishment clause argument because the bill granted exemptions to certain religious lobbying and thus “demonstrated a preference for religious speech over non-religious speech.”  Eventually, the state and the ACLU agreed to a fee of $300 and the suit was dropped.   Additionally, lobbyists are required to complete an online ethics training course within 30 days of registration.

Lobbyists will have to report more frequently in 2011 and beyond.  The lobbying dates used to be tied to whether the legislature was in session but are now semi-monthly, regardless.  In 2010, while the litigation on the Act was pending, reporting was done essentially as soon as the Secretary of State’s Index Department was able to receive them in the midst of the judicial and legislative melee.  Lobbyists filed a report on September 30 for the first half of 2010, and now must report second-half expenditures on January 15, 2011.  Starting in 2011, reports are due twice per month.  A report for the first 15 days is due on each 20^th, and a report covering the 16^th through the end of each month is due on the following 5^th.  While this is very cumbersome, it is at least consistent.  The smaller reporting periods should make the information to be reported very manageable.

One feature of Illinois’ lobbying seen in a few other states is the provision relating to notification of officials.  Previously, if an official were set to appear on a lobbyist’s report because that lobbyist made an expenditure on the official, the lobbyist was required to give the official notice of this fact 25 days before the report was due and again 30 days after the report was filed.  Under the new changes, the 30-day post-notification remains but the pre-notification is changed.  Now, lobbyists must give the official “contemporaneous written notification” of a reportable expenditure made on the official’s behalf.

Photo of Gov. Pat Quinn by Chris Eaves on Wikipedia.

Cook County Commissioners have approved a series of ethics reforms focused on certain political contributions. Among the reforms is a provision requiring candidates for County Assessor to return contributions exceeding $1,500 from lawyers who appear before their office seeking reduced property values.

Additionally, fines for breaking county ethics rules have been increased tenfold; violators now face a maximum fine of $5,000. The board intends to clarify the county’s conflict-of-interest code after the upcoming election.

You can visit the Web site for the Cook County Commissioners.

The Illinois Secretary of State has mailed invoices for the revised lobbyist registration fee.

According to the Index Department, the invoices were sent on August 10, 2010 and the $300 fee is due on September 9, 2010. This invoice must accompany the payment.

The Illinois Secretary of State Index Department has announced expenditure reporting requirements for the first half of 2010. Reporting for expenditures made on behalf of officials for the period of January 1 through June 30, 2010 opens on September 1, 2010.

Expenditures must be filed within 30 calendar days, or by September 30, 2010. The Index Department has announced they will publish an updated Expenditure Report Filing Guide available online on August 16, 2010. This guide is designed to assist filers with changes to the lobbyist laws.

Photo of Illinois Secretary of State Jesse White.

County Clerk David Orr and Commissioner Bridget Gainer announced “Lobbyist Online,” a searchable database of lobbyists and lobbying activity in Cook County. This Web site allows users to find out who is lobbying county government, what they are promoting, who they are trying to influence, and how much money they make. This site comes on the heels of a newly implemented electronic lobbyist registration and reporting system.

Orr’s office reported lobbyists made 576 contacts seeking to influence nearly 60 county officials during the first half of 2010.

Here is the Cook County Clerk Web site with a link to the Lobbyist Online database.

This bill changes several provisions of the lobbying laws. The registration fee is lowered to $300 in response to the previous fee of $1,000 having been enjoined. Under this new law, lobbyists must notify officials in writing of reportable expenditures at the time the expenditures are made.

Effective January 1, 2011, lobbyist reports are due on a semi-monthly basis. For 2010, a report covering the second half of the year is due January 15, 2011; the Secretary of State will issue instructions for reporting lobbyist expenditures incurred during the first half of the year.