Federal:

Activist Lawyer Aims to Drop Campaign Restrictions

USA Today – Fredreka Schouten | Published: 3/10/2014

Dan Backer is on a campaign finance crusade. Many of the lawyer’s far-fetched proposals have been rejected by federal regulators. But the conservative Republican could be on the brink of making election history – and his reputation – with a case the U.S. Supreme Court is deliberating. McCutcheon v. the Federal Election Commission seeks to eliminate the ceiling on what wealthy individuals can donate to federal candidates, parties, and PACs in a two-year election cycle.

Wanted by Ecuador, 2 Brothers Make Mark in U.S. Campaigns

New York Times – Frances Robles | Published: 3/11/2014

Roberto and William Isaias, who are fugitives from Ecuador now living in the U.S., have raised hundreds of thousands of dollars in campaign contributions from relatives for President Barack Obama and more than a dozen members of Congress. While the contributions were not illegal, campaign finance experts say they have opened the already politicized nature of extradition requests to greater scrutiny and raised questions about the access to power the donations provide.

From the States and Municipalities:

Arkansas – Federal Jury Convicts Former Arkansas Treasurer

ABC News – Chuck Bartels (Associated Press) | Published: 3/11/2014

A jury found former Arkansas Treasurer Martha Shoffner guilty on 14 counts of bribery and extortion. Prosecutors said during the federal trial that Shoffner received money from broker Steele Stephens and in exchange, she steered a disproportionate amount of the state’s investment business to Stephens. Shoffner was arrested in May when FBI agents raided her home and found $6,000 that was delivered in a pie box.

California – Sky’s the New Spending Limit in LA’s Westside Supervisor’s Race

KPCC – Sharon McNary | Published: 3/12/2014

Bobby Shriver, who is running for a seat on the Los Angeles County Board of Supervisors in the June 3 primary, has rejected voluntary campaign spending limits and said he will at least partially self-fund his race. The action removes expenditure caps for all the candidates, and imposes a $300 limit on donations to Shriver.

District of Columbia – Prosecutors Say DC Mayor Knew of Illegal ‘Shadow Campaign,’ Personally Requested Funds

Star Tribune – Ben Nuckols (Associated Press) | Published: 3/10/2014

Prosecutors said District of Columbia Mayor Vincent Gray knew about an illegal fundraising operation that helped him capture the 2010 election and personally asked a prominent business executive to finance the scheme. The allegations were revealed in court documents detailing the activities of Jeffrey Thompson, the multimillionaire former owner of a well-connected accounting firm who pleaded guilty to two conspiracy charges.

Florida – Who Says Lobbyists Can’t Win Elections?

Politico – Byron Tau | Published: 3/12/2014

Despite his profession’s low approval ratings, lobbyist David Jolly edged out Alex Sink in Florida’s special election for the 13th Congressional District seat. It is the latest sign a Washington, D.C. lobbying or consultant background is not a deal-breaker at the ballot box. Jolly is the second prominent K Street denizen to get a nod from voters in recent months and two other candidates with ties to lobbying firms or trade associations will face voters this year: Ed Gillespie in Virginia and Debbie Dingell in Michigan.

Illinois – Campaign Finance Case Won’t Be Resolved This Election Cycle

Quad City Times – Kurt Erickson | Published: 3/6/2014

A lawsuit challenging Illinois’ caps on political donations is unlikely to be resolved before the 2014 elections, so limits put in place in 2009 will probably remain in place for the rest of this election season. U.S. District Court Judge Gary Feinerman dismissed most of a challenge to the landmark changes filed by the Liberty Justice Center, but kept one piece of the case alive for further debate, potentially extending arguments for several more months.

Kansas – Ex-Rep. Trent LeDoux Accused of Bank Fraud, Money Laundering

Topeka Capital Journal – Timothy Carpenter | Published: 3/12/2014

A federal grand jury indicted former Kansas Rep. Trent LeDoux, charging he used bank loans obtained to purchase cattle to finance his political activities. LeDoux faces three counts of bank fraud and two counts of money laundering for allegedly depositing funds from the cattle loans into his campaign account in 2011 and 2012.

Michigan – Mich. Slaps Health Care Union with 2nd Largest Elections Fine Ever

Detroit News – Chad Livengood | Published: 3/10/2014

The Service Employees International Union (SEIU) will pay almost $200,000 to settle alleged campaign finance violations from a failed 2012 ballot proposal seeking collective bargaining rights for home health workers in Michigan. The complaint accused the principals behind Home Care First and Citizens for Affordable Quality Home Care of intentionally delaying required filings with the secretary of state’s office to conceal that SEIU had made substantial contributions to support the proposal.

Minnesota – Minnesota House Votes to Reverse ‘Free Lunch’ Provision for Legislators

Minneapolis Star Tribune – Abby Simons | Published: 3/10/2014

The Minnesota House voted to reverse course on a recent change to the law that made it easier for lobbyists to buy meals for legislators. The bill would do away with an exception that allows lawmakers to get lobbyist-purchased meals at receptions as long as all legislators are invited. Under the state’s prior gift ban, lawmakers had to reimburse sponsoring group or lobbyists for the cost of those meals.

South Carolina – Ethics Regulators Question Lobbyist’s Campaign Contribution to S.C. Attorney General

Charleston City Paper – Corey Hutchins | Published: 3/7/2014

Onetime lobbyist Joyce Hearn gave a total of $200 to South Carolina Attorney General Alan Wilson’s campaign in 2009 and 2010. Hearn de-registered as a lobbyist on May 30, 2010, but that does not matter, said State Ethics Commission Deputy Director Cathy Hazelwood. Even if a lobbyist de-registers in South Carolina, he or she cannot give direct campaign contributions to a lawmaker or statewide candidate during the year they lobbied.

Utah  Report: Swallow put a ‘For Sale’ sign on the Utah AG’s office

Salt Lake Tribune – Robert Gehrke | Published: 3/12/2014

A House panel closed its investigation of former Utah Attorney General John Swallow by releasing a report that says he traded favors with businesspeople, obscured campaign donations, and destroyed records, among other allegations. “[Swallow] hung a veritable ‘for sale’ sign on the office door that invited moneyed interests to seek special treatment and favors,” alleges the report. Two county attorneys in Utah, with the assistance of the FBI, are in the middle of a criminal investigation of Swallow and others.

Virginia – Va. General Assembly Adjourns without Budget or Medicaid Expansion

Washington Post – Laura Vozella, Michael Laris, and Rachel Weiner | Published: 3/8/2014

Virginia lawmakers passed an omnibus ethics reform bill that sets a $250 annual limit on the amount of certain gifts elected officials can accept from lobbyists, principals, and anyone who has or is seeking business with the state. It requires disclosure of gifts given to spouses and immediate family members, establishes an ethics advisory council, and increases the transparency of financial disclosure forms by putting them online.

Washington – PDC Disclosure Bill for Lobbyists’ Freebies Gets ‘Lost in the Shuffle’

The Olympian – Brad Shannon | Published: 3/11/2014

Washington lawmakers most likely will adjourn their legislative session without addressing the issue of lobbyist-paid entertainment. A bill that would have required lobbyists to file spending reports electronically at the state Public Disclosure Commission failed to move out of Senate Ways and Means Committee at the deadline for policy bills.

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.

Lobbying

“Who says lobbyists can’t win elections?” by Byron Tau in Politico.

“Business groups: Don’t go overboard on Russia sanctions” by Doug Palmer, Adam Behsudi, Matthew Korade and Andrew Restuccia in Politico.

Kansas: “House panel studies bill adjusting definition of lobbyist” by Ryan McCarthy in the Topkea Capital-Journal.

Campaign Finance

“FEC Offers Seminar for Corporations and their PACs” by Kent Cooper in Roll Call.

“Corporations Can Expect To Pay More For Conventions” by Kent Cooper in Roll Call.

Michigan: “State fines labor union for campaign finance violations” on WBUP NBC 10.

Ethics

Colorado: “Scott Gessler loses appeal over ethics ruling” by Lynn Bartels in The Denver Post.

Elections

Arizona: “Brewer announces political retirement, won’t seek 3rd term” by Howard Fischer in the Arizona Capitol Times.

Texas: “The Big Change in Texas Elections? More Time.” by Jim Malewitz and Shelby Cole in Governing.

Lobbying

“Lobbying World” in The Hill.

“Inside a K Street success story” by Megan R. Wilson in The Hill.

“Bitcoin Foundation Adds Ex-PayPal Lobbyist, Clinton Official” by Carter Dougherty in Bloomberg BusinessWeek.

Alabama: “Bill to limit Ala. legislator lobbying revised” by The Associated Press on WPMI NBC 15.

Alabama: “Alabama barbers use haircut time to lobby legislators for regulatory change” by Eddie Burkhalter in The Tribune.

Campaign Finance

“Lawmakers More Likely To Meet with Campaign Donors Than Constituents, New Study Finds” by Amanda Terkel in the Huffington Post.

“Liu sues city for blocking $3.8M in public funds during mayoral bid” by Rich Calder in the New York Post.

Ethics

“Associate of ex-Rep. Rivera pleads not guilty to 4 campaign finance violations” by Curt Anderson (Associated Press) in the Daily Reporter.

District of Columbia: “D.C. Businessman Pleads Guilty to Providing $3.3 Million to Campaigns” by Kent Cooper in Roll Call.

District of Columbia: “D.C. Mayor Vincent Gray in annual citywide address: ʹI didnʹt break the lawʹ” by Aaron C. Davis and Mike DeBonis in The Washington Post.

Elections

Delaware: “Panel wrapping up review of Del. election laws” by The Associated Press in The Washington Post.

Legislative Sessions

Wisconsin: “Walker to call special session if courts rule against voter ID” by Patrick Marley in the Milwaukee Journal Sentinel.

The Senate passed a bill to widen the ability of lobbyists to provide campaign contributions. Senate Bill 655 allows a lobbyist to deliver or personally make political contributions as early as April 15 of a general election year. Currently, lobbyists must wait till June 1 to personally make contributions.

A proposal to allow lobbyists to deliver campaign contributions during a floorperiod did not pass. The bill now goes to the Assembly.

Georgia lawmakers and lobbyists are adapting new gift limits to old reporting methods while the ethics commission attempts to draft rules. House Bill 142 established the first-ever limit on lobbyist spending by capping the value of a gift a lobbyist could give a lawmaker at $75.

The bill, effective January 1, 2014, has several exceptions including one to remove the $75 cap for any caucus approved by the House or Senate ethics committees.

Once approved as a caucus, the members can accept a gift greater than $75 without everyone in a caucus attending a dinner, so long as the entire group is invited. Even before committee approval, delegations and more traditional caucuses began accepting expensive meals from lobbyists, leaving lobbyists to figure out how to disclose the spending.

The Georgia Government Transparency and Campaign Finance Commission is still months away from unveiling rules governing the new ethics law.

Lobbying

“Bottom Line” in The Hill.

California: “Fourth client drops lobbyist firm hit with record fines” by Patrick McGreevy in the Los Angeles Times.

Washington: “Lobbyist Paid Meals Legislation Appears To Die In Washington Statehouse” by Austin Jenkins in KUOW.

Campaign Finance

“Illegal Campaign Contributions By Lawyer at Florida Law Firm” by Kent Cooper in Roll Call.

Utah: “House kills campaign donation limits bill” by Lee Davidson in The Salt Lake Tribune.

Wisconsin: “Wisconsin big business interests back campaign finance bill” by Jack Craver in The Capital Times.

Ethics

District of Columbia: “D.C. Businessman Tied to 2010 Mayoral Campaign, Federal Candidate Faces Corruption Charges” by Hannah Hess in Roll Call.

District of Columbia: “Gray knew of ‘shadow campaign,’ Thompson prosecutors say; mayor says it’s all a lie” by Ann E. Marimow, Matt Zapotosky and Paul Schwartzman in The Washington Post.

Honolulu, Hawaii: “Honolulu Ethics Director Takes His Case for More Money to City Council” by Sophie Cocke in the Honolulu Civil Beat.

Michigan: “Michigan campaign finance violation draws near-record fine for union’s actions in 2012 election” by Brian Smith in Michigan Live.

Lobbying

“Roscoe Bartlett, defense lobbyist” by Austin Wright in Politico.

“Lobbying Firm Patton Boggs Fights for Itself” by Jennifer Smith and Elizabeth Williamson in The Wall Street Journal.

Canada: “Lawmakers top lobbyists in annual hockey game” by JulieAnn McKellogg and Emily Heil in The Washington Post.

New Jersey: “Hospitals were top spenders on lobbying in 2013, report says” by Susan K. Livio in The Star-Ledger.

Wyoming: “Editorial board: Wyoming lobbyists laws too weak, unenforced” in the Casper Star-Tribune.

Campaign Finance

“Comcast spreads cash wide on Capitol Hill” by Tony Romm in Politico.

Illinois: “Lawsuit challenging campaign financing limits won’t affect 2014” by Kurt Erikson in the Herald & Review.

Iowa: “Is anonymous donating the next big thing in Iowa politics?” by Mike Wiser in the Globe Gazette.

Louisiana:  “Campaign finance bills filed for legislative session that begins March 10: List” by Dan Swenson in The Times-Picayune.

North Carolina: “Dark money comes to light” by Mark Binker in WRAL News.

Utah: “Senate panel endorses campaign finance reform bills” by Dennis Romboy in the Deseret News.

Ethics

California: “California Legislature considers ethics reform bills” by Patrick McGreevy in the Los Angeles Times.

New York: “Assemb. William Boyland guilty on all counts” by John Riley and Anthony M. Destefano in Newsday.

South Carolina: “Book’s sale at park shops needles Sheheen campaign” by Rudolph Bell in The Greenville News.

West Virginia: “Bill would change ethics commission” by Phil Kabler in the Charleston Gazette.

Wisconsin: “Controversial election bills find little support in state Senate” by Matthew DaFour in the Wisconsin State Journal.

Legislative Sessions

Virginia: “Bills of note that passed in the 2014 General Assembly session” by The Associated Press in The Loudoun Times.

Government Tech and Social Media

Minnesota: “Minnesota Announces Civic Tech Legislation” by Sam Roudman in TechPresident.

West Virginia: “Onlookers often rely on social media for session updates” by Mandi Cardosi in The State Journal.

National:

Outrage Over Sexist Remarks Turns Into a Political Fund-Raising Tool

New York Times – Amy Choziak | Published: 2/27/2014

With a record number of women in Congress and dozens more on the ballot, gender-charged attacks – stoked by the growth of social media and small-dollar Internet donations – can generate campaign contributions in an instant. In the past few months, Republicans have likened Democratic U.S. Senate candidate Alison Lundergan Grimes to an “empty dress” and referred to a pregnant woman as a “host.” Democrats blast these comments out to supporters to build voter lists and drum up donations.

Federal:

Democrats Embrace Super PACs, but Some Fear Lack of Focus on Midterm Elections

Washington Post – Matea Gold | Published: 2/28/2014

There is now a near-universal view among top donors and strategists that the Democratic Party needs its own super PACs to compete with the growing role such groups are playing on the right. But there are disagreements over how to use the independent organizations. Some say Priorities USA Action and other groups that can accept unlimited contributions are too focused on the 2016 presidential race and a potential Hillary Clinton candidacy, even as Democrats face a costly, uphill fight this year to retain a thin Senate majority and gain seats in the House.

Group Close to Obama Says It Erred on Donation

New York Times – Nicholas Confessore | Published: 3/4/2014

Organizing for Action, a political advocacy group backed by President Barack Obama, said its executive director set up a White House meeting for a businessperson entangled in a lawsuit with a federal agency, who then pledged to raise $100,000 for the group one day after the meeting. The organization also said on three occasions its fundraisers or other employees had tried to steer potentially controversial donations to allied liberal groups that did not disclose their donors.

From the States and Municipalities:

California – Senate Dems to Propose New Limits on Gifts, Fundraising

Sacramento Bee – Laurel Rosenhall | Published: 3/5/2014

Countering a series of scandals, California Senate Democrats plan to propose sweeping changes to the Political Reform Act, including stricter limits on accepting gifts and campaign contributions. Sources said the legislation will cut roughly in half the $440 annual limit on gifts to elected state officials, and prohibit candidates from holding political fundraisers at the homes of lobbyists.

Colorado – Critics See Proposed Ethics Commission Cue as Bad Medicine

Colorado Independent – John Tomasic and Tessa Cheek | Published: 3/2/2014

A bill that aims to fix the Colorado Independent Ethics Commission comes as the number of complaints filed with the panel continues to grow. House Bill 1258 seeks to bolster protections for state employees who are brought before the commission. It would ensure they are provided with tax-paid legal counsel and have the right to sue individual members of the commission for damages. Critics say the measure would do more harm than good.

Colorado – First and Only Director of Colorado Ethics Commission Steps Down

Denver Post – Lynn Bartels | Published: 3/1/2014

Colorado Independent Ethics Commission Executive Director Jane Feldman has submitted her resignation, effective at the end of March. Complaints about the commission have led to legislation being introduced this session. That would affect its operations.

Florida – Special Interests Pay Their Way onto Florida’s Legislative Agenda

Bradenton Herald – Mary Ellen Klas (Miami Herald) | Published: 3/3/2014

Many of the decisions about what issues make the agenda of Florida’s 2014 legislative session have already been made, in large part due to special interest groups and a torrent of money flowing into the coffers of legislative political committees. Longtime lobbyist Bob Levy said money has always been a major part of what happens in Tallahassee, but the difference is the number of zeroes. “It existed then, but it was $50,000; today it’s $500,000,” said Levy.

Missouri – Small Number of Donations Fuel Missouri Political Spending

St. Louis Post-Dispatch – Walker Moskup | Published: 3/3/2014

From 2011 to 2013, more than half of the money raised by Missouri campaign committees – about $67 million – came from donations of $5,000 or more. Those larger donations represent about three percent of the total number of contributions. The absence of contribution limits in the state exacerbates the reliance on mega-donors, said Missouri State University professor George Connor.

Pennsylvania – D.C.-Based Democratic ‘Super PAC’ Sues to Remove Pa. Law Blocking it from Getting Corporate and Union Money

Harrisburg Patriot-News – Matt Miller | Published: 3/3/2014

A Washington, D.C.-based super PAC filed a lawsuit asking a federal judge to void a Pennsylvania law that is blocking its efforts to raise funds from corporations, associations, and unions in the state. The General Majority PAC contends the U.S. Constitution and a Supreme Court ruling grant it the right to solicit money from those sources to finance its political message during Pennsylvania’s legislative races this year.

Utah – Free Lunches, Receptions Abound for Utah Legislature

Salt Lake Tribune – Lee Davidson | Published: 3/3/2014

While events featuring free food remain a popular way to attract Utah lawmakers to hear lobbying pitches, they appear to be changing. The number of free lunches, which are expensive for sponsors, dropped by nearly half this year. Less-costly receptions nearly doubled. Still, special interests do not see free “wining and dining” disappearing any time soon. That is too bad, say groups who cannot afford that style of lobbying.

Virginia – Va. Moves to Tighten Ethics Rules, But Not Too Much

Washington Post – Michael Laris | Published: 3/1/2014

The Virginia House and Senate have passed different bills that address ethics reform. They will work on a compromise as the legislative session draws to a close, but neither bill addresses key loopholes. Lawmakers said it was more difficult than they expected to make far-reaching changes, in part because as they got into the details, they became concerned that imposing tough provisions could end up inadvertently criminalizing their own honest mistakes.

Wisconsin – Wisconsin Senator Seeks to Allow In-Session Lobbyist Checks

Milwaukee Journal Sentinel – Patrick Marley | Published: 3/4/2014

Recently introduced bills in Wisconsin would exempt political groups behind issue ads from disclosing donors and allow lobbyists to funnel donations to candidates. Senate Bill 655 would allow lobbyists to provide contributions on behalf of others to elected officials at any time. The bill also would move up the date on which lobbyists can personally give campaign contributions from June 1 to April 15 of election years.

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.

Lobbying

“K Street gears up for Hillary” by Kevin Bogardus in The Hill.

“Groups Try to Mute the Comcast Lobby | K Street Files” by Kate Ackley in Roll Call.

Louisiana: “Former Jindal aide Rainwater looks to lobbying, consulting” by Michelle Millhollon in The Advocate.

New Jersey: “Lobbying expenditures climbed over $60 million in 2013, report finds” in PolitickerNJ.

Campaign Finance

“New Challenges to Campaign Finance Regulation” opinion piece by David Friedman in The Stanford Daily.

New York: “Women stump for campaign finance reform” by Casey Seiler in the Capitol Confidential.

Wisconsin: “Walker says he’s not focused on Republican bills affecting campaign donations, spending” by Scott Bauer (Associated Press) in The Republic.

Ethics

California: “Senate Democrats proposing revamp of campaign, gift laws” by Patrick McGreevy in the Los Angeles Times.

Campaigns and Elections

“Thought the Senate map was set?” by Jessica Taylor in The Hill.

“2014 Governors Races: A Look at the Too-Close-to-Call Contests” by Louis Jacobson in Governing.

South Carolina: “Cheers! SC Bill Aims to Lift Booze Ban on Election Day” by Drew MacKenzie in Newsmax.

Procurement

“Bringing Innovation to Procurement” by Justin Brown in Government Technology.

Lobbying

“Lobbying World” in The Hill.

Kentucky: “Ethics Reporter: First month of session sees one-month record of $1.9 million for lobbyists” by the Kentucky Ethics Commission in KY Forward.

Wisconsin: “Wisconsin senator seeks to allow in-session lobbyist checks” by Patrick Marley in the Journal Sentinel.

Campaign Finance

Illinois: “Rauner’s $6 million sets record in Illinois governor race” by Rick Pearson in the Chicago Tribune.

Wisconsin: “State Senators introduce campaign finance legislation” by Andrew Hahn in The Daily Cardinal.

Ethics

“Former FEC General Counsel Retruns to Battle” by Kent Cooper in Roll Call.

California: “Scandals cost California Democrats supermajority in Senate” by Jessica Calefati in the Contra Costa Times.

Elections

“Texas 2014 Primary Election Results” in the Texas Tribune.

The Board of Supervisors has adopted a Lobbyist Ordinance to regulate any person who contacts certain county officials with the purpose of promoting, supporting, modifying, opposing, or causing delay or abandonment of conduct. Ordinance No. NS-19-42 regulates contract lobbyists, in-house lobbyists, lobbying firms, and expenditure filers who influence policy without directly contacting officials.

Legislative, procurement, and grassroots activity is covered by the ordinance, which specifically provides for the possibility a political action committee will qualify as an in-house lobbyist.

Registration and disclosure forms will be available when the ordinance becomes effective on March 27, 2014.

Lobbying

“Bottom Line” in The Hill.

“Wyden’s rise starts K Street bidding war” by Megan R. Wilson and Kevin Bogardus in The Hill.

“Hollywood’s Top Lobbying Group Is Sponsoring CPAC” by Nikki Schwab in U.S. News & World Report.

Campaign Finance

Florida: “More Ads in Florida Push Independent Expenditures above $7.5 million” by Kent Cooper in Roll Call.

Ethics

California: “California lawmakers report meals, sports tickets, other gifts” by Patrick McGreevy in the Los Angeles Times.

New Jersey: “Port Authority chairman hit with ethics complaint by NJ Working Families Alliance” by Steve Strunsky in The Star-Ledger.

Vermont: “Vermont House working on ethics rules” by Nancy Remsen in the Burlington Free Press.

Congress

“Snow Delays Senate Votes for Another Day” by Niels Lesniewski in Roll Call.

State Legislative Sessions

Florida: “A viewers’ guide to the 2014 Florida Legislature session” by Steve Bousquet in the Miami Herald.

Kansas: “Kansas lawmakers taking a break from session” by The Associated Press on KAKE News.

Utah: “Nine days remain in productive legislative session” by Billy Hextra in the Daily Herald.

Wyoming: “Bill on special legislative session to deal with fallout from Supreme Court decision dies” by Bob Moen (Associated Press) in The Republic.

Elections

Texas: “What to Watch in the Texas Primary” by Ross Ramsey in Governing.

Virginia’s lack of gift laws has been thrown into the spotlight recently with the federal indictment of former Gov. Bob McDonnell. McDonnell became embroiled in scandal after accepting gifts worth thousands of dollars from Star Scientific CEO Jonnie Williams. While state law required all gifts of more than $50 to be disclosed, there was no limit on what a public official could accept from any donor. Williams also gave gifts to McDonnell’s wife and daughters; these gifts went undisclosed because state law does not require gifts to officials’ family members to be disclosed.

The national attention on Virginia has turned the tide in favor of ethics reform. Several ethics bills filed before the session convened on January 8 have now been incorporated into Senate Bill 649. This comprehensive bill prohibits gifts of more than $250 from lobbyists, requires reporting of gifts to immediate family members, changes lobbyist reporting from annual to semiannual, and establishes the Virginia Conflict of Interest and Ethics Advisory Council, a newly created legislative agency tasked with facilitating compliance with the state’s ethics laws. The bill passed the Senate on February 10 and the House of Delegates with a substitution and amendments on February 26, but the Senate rejected the House’s amended bill on February 28.

While it remains to be seen whether the General Assembly will pass ethics reform before it adjourns on March 8, newly sworn-in Gov. Terry McAuliffe took swift action to ensure his administration would not face the same ethical issues as McDonnell’s had. On his first day as governor, McAuliffe signed Executive Order 2, which prohibits the acceptance of gifts in the executive branch exceeding $100 per calendar year. The order became effective immediately upon his signature. Gifts from lobbyists and principals are now restricted to $25. The order does allow for some exceptions, such as excluding items of $25 or less from the definition of gift. It also allows the receipt of certain items while engaging in an activity serving a legitimate public purpose, such as food and refreshments served at certain events.

Q. My company is planning to get more engaged on the local level. What are some things I need to consider?

A. There are many considerations for a company prior to engaging on the local level. To ensure you are in compliance while interacting with municipal officials, it is important to check whether the municipality has a lobbyist registration ordinance, gift rules, or a pay-to-play ordinance. These provisions, if present, will impact your ability to engage with municipal officials. Requiring lobbyists to register on the municipal level is a quickly emerging trend throughout the U.S. This trend is not just impacting individuals who engage in what is generally regarded as lobbying, but also affecting permitting, sales, and other business functions.

For example, in San Jose, California, lobbying includes attempting to influence the proposal, drafting, development, adoption, recommendation, or approval of any contract, permit, license, or hiring action. The proliferation of these types of provisions has made it such that applying for a building permit, attempting to contract with the state, or even attempting to influence the selection of a candidate to be hired may be considered lobbying depending on the jurisdiction and the circumstances. The broad application of lobbying ordinances in municipalities merits attention and consideration prior to engaging to ensure registration is completed if needed.

An additional consideration is whether your company belongs to any trade associations with a lobbying presence in the municipality. Trade associations can help facilitate introductions to key players. However, you must still pay attention to the lobbyist registration threshold. It is a common misconception that being in the presence of a registered lobbyist negates an individual’s registration requirement. This is very rarely the case and should not be relied upon as a general rule. For more information about local level lobbying, please visit our website, www.stateandfed.com.

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.