Code Home Rule Bill 5-11 expands regulation regarding conflict of interest, lobbyist reporting, gift law, and enforcement of violations.

Changes include a lower registration threshold for lobbyists at $200 of food, entertainment, or gifts to public officials in a calendar year. The ethics commission will now be able to asses a late fee of $10 per day for failure to timely file lobbyist registrations and reports.

Q: I am a registered lobbyist who would like to host a state legislator at a college football game.  Are there specific restrictions to this type of gift?

A: The most common gift restrictions are those relating to food and beverage.  Providing tickets or admission to a football game is a different type of gift, referred to as entertainment or hospitality.

Some jurisdictions do not restrict providing entertainment at all.  Pennsylvania does not restrict a lobbyist providing hospitality to an official.  However, Pennsylvania does require the lobbyist’s principal to report the gift of hospitality, even itemizing it if the aggregate of all gifts to the official is more than $650 in a calendar year.

Other jurisdictions allow a lobbyist to provide entertainment up to a certain amount.  In Texas, a lobbyist may provide expenditures for entertainment of $500 or less in a calendar year.  Ohio permits a lesser amount.  Lobbyists may provide Ohio officials gifts worth an aggregate annual value of $75 or less.  Like Pennsylvania, both Texas and Ohio require the gift to be reported.

Louisiana specifically prohibits providing tickets to sporting events except for a very narrow exception.  Other jurisdictions do not specifically mention entertainment or hospitality, but generally restrict these gifts to officials.  Though a big football state, Wisconsin generally prohibits all gifts to officials.

The question reinforces the idea that a lobbyist must understand all of a jurisdiction’s gift restrictions, not just those that pertain to food and beverage.  When considering any dollar value limitation on entertainment or hospitality, be sure to consider the proper method to value the gift in that jurisdiction.  For example, the cost of a football ticket for ethics purposes could be its face value or its fair market value.

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.

National:

Election Spending to Exceed $6 Billion Thanks Partly to Jim Bopp

Twitter to Launch Political Advertising

Federal:

K Street Cool to Obama Lobbying Plan

Watchdog Spotlights Lawmaker Ethics in ‘Most Corrupt’ Report

From the States and Municipalities:

Alabama

Former Governor Riley Gets Ethics Training He Pushed

California

California Pension Managers Fined for Unreported Gifts

Connecticut

‘Shock Jock’ Hal Turner Acquitted in Connecticut Threats Case

District of Columbia

Wells Drafts D.C. Bill to Limit Lobbyists’ Influence

Illinois

The Price of Influence in Chicago

Louisiana

Sugar Bowl in Violation of Tax Law with Purchases to Fundraiser

Missouri

T.D. El-Amin Gets Record Ethics Fine

Montana

Supreme Court Looks at Campaign Finance for Political Spending

Oklahoma

Oklahoma High Court Hears Former Senator’s Appeal

Pennsylvania

Soon, Lobbyists Must Register

Wisconsin

Judge: Wisconsin campaign law is unconstitutional

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.

Jim Sedor is editor of News You Can Use.

We now provide information on lobbying, political contributions, and procurement lobbying for:

Tempe, Arizona

Evansville, Indiana

South Bend, Indiana

Flint, Michigan

North Las Vegas, Nevada

Reno, Nevada

Fayetteville, North Carolina

Chattanooga, Tennessee

Knoxville, Tennessee

We now provide information on lobbying, political contributions, and procurement lobbying for:

Sterling Heights, Michigan

Lafayette, Louisiana

State and Federal Communications  is the most trusted source in the nation for comprehensive, accurate, and timely compliance information lobbying laws, political contributions, procurement lobbying, and Canadian Compliance for U.S. Companies.

Our Executive Source Guides cover every important jurisdiction – federal, all 50 states, and more than 200 municipalities. We cover Canada too!

Federal:

Firm Gives $1 Million to Pro-Romney Group, Then Dissolves

K Street Eyes Super Committee

Lobbying for Lobbyists on Capitol Hill

From the States and Municipalities:

California

California Poised to OK Political Donations via Text

Connecticut

Watchdog Panel Gives Malloy Three Choices for New Executive Director

Delaware

Weak Rules Make for Powerful Lobbyists

Hawaii

Ethics Chief Draws Ire for Stance on Task-Force Members Who Lobby

Illinois

Are State Worker Punishments Fitting the Crimes?

Michigan

Dispensary Offered Free Marijuana for Signing Up to Vote

New Jersey

N.J. Freeholder Resigns after Nude Photos Appear On-line

Oklahoma

Oklahoma Lobbyists Are Paying Attention to Freshman Lawmakers

Wisconsin

Court Tosses Wisconsin Limit on PAC Donations

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.

Jim Sedor is editor of News You Can Use.

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.

We now provide information on lobbying, political contributions, and procurement lobbying for Miami, Florida; Pembroke Pines, Florida; and Vancouver, Washington on our website.

The image of North America by Bosonic dressing on Wikipedia.

New ethics regulations have been introduced by the Laurel, Maryland City Council, including provisions related to lobbyists.

Observing Maryland’s state ethics regulations for municipalities, the introduced ordinance requires lobbyists to file reports twice a year for each entity they represent. Lobbyists failing to file timely reports could be assessed a late fee of $10 per day up to a maximum of $250. Further enforcement of violations by lobbyists could include additional fines up to $5,000 per offense and suspension of lobbyist registration.

The bill also includes financial reporting requirements for public officials, hiring practices regulations, and rules regarding conflicts of interest.

Map of Maryland by Arkyan on Wikipedia.

By Labor Day, our clients will find 36 additional municipalities included on our website. As they are completed, we will update our postings so you can check out the additional resources.

Right now, we have provided information on lobbying, political contributions, and procurement lobbying for Alexandria, Virginia (my former home) and Tacoma, Washington.

In the future look for additional cities in New York, Arizona, and Michigan.

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.

Q. I am a lobbyist but am not registered in a jurisdiction because I mainly use outside counsel and do not meet the registration threshold. Should I be concerned with any reporting requirements or other restrictions?

A. Yes, you need to be familiar with the jurisdiction’s reporting requirements. Even if you do not surpass a registration threshold, your activities may require disclosure. In Pennsylvania, a principal/company is required to report pro-rata compensation and expenses paid to non-lobbyists if they engage in lobbying activities, yet remain under the $2,500 per quarter registration threshold. Though you never engage in direct lobbying, preparation, or strategic planning with your lobbying firm, it may be reportable.

Verify the reporting of political contributions in your jurisdiction. If you are not a registered lobbyist, you may still have responsibility for directing how political contributions are distributed. Vermont, for example, requires political contributions to be disclosed on an employer’s report.

Finally, be aware of gift restrictions. You may believe it is permissible to take a public official to lunch or for a cup of coffee because you are not registered in the jurisdiction. In Massachusetts, a person not registered as a lobbyist may only provide gifts valued at less than $50 to a state, county, or municipal employee. If your company is registered as a lobbyist employer in the jurisdiction, gift restrictions may be applicable to all employees. Michigan only allows a lobbyist employer to provide gifts in a month which are valued at $55 or less. Expenditures which are reimbursed are attributable to the company in all instances. Whether these expenses require reporting will vary.

 

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.

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.