November 4, 2010 •
Utah Voters Approve New Legislative Ethics Commission
Amendment takes effect in 2011
On November 2nd, voters approved Constitutional Amendment D by a vote of 67 percent for to 33 percent against. Amendment D establishes a five-member legislative ethics commission with the authority to conduct an independent review of complaints alleging unethical legislative behavior.
The ultimate decision whether to punish or expel a member of either the House or Senate would remain with the member’s chamber. The amendment also prohibits sitting members of the legislature or registered lobbyists from serving on the new commission.
Amendment D takes effect on January 1, 2011.
October 20, 2010 •
Baltimore May Expand Lobbying Laws
Bill Introduced to City Council
Baltimore City Council President Bernard Young introduced legislation to expand the city’s rules on lobbying. The Promoting Honesty in Lobbying bill requires individuals paid any dollar amount for lobbying to register as lobbyists. Currently, individuals are only required to register as lobbyists if they earn $2,500 or more.
Registration would also be required of individuals spending 20 percent or more of their time over a six-month period on lobbying. Lobbyists would have to report total expenditures for grassroots lobbying, including those for print, audio, visual, and electronic publications. Among other provisions of the bill is the prohibition of a lobbyist stating he or she can obtain the vote of a councilmember.
Photo by Nfutvol on Wikipedia.
October 13, 2010 •
New Hampshire Lobbyist Registration Requirement Draws Criticism
Legislator’s Complaint Raises Concerns over New Hampshire Lobbyist Registration Requirement
A 2006 New Hampshire ethics reform law requiring any non-public official who meets with a lawmaker to discuss legislation to register as a lobbyist has recently come under fire. The law currently exempts lawyers who are full-time employees of a public body from the registration requirement. Opponents of the law argue small towns and school districts that cannot afford a full-time attorney are put at a disadvantage to larger governmental organizations in efforts to influence legislation.
Citing the law, New Hampshire Rep. Rick Watrous recently asked the attorney general’s office to investigate the actions of attorney John Teague. Teague serves as the Concord School District’s lawyer, but is not a full-time school district employee. Teague participated in a meeting with Senate President Sylvia Larsen, Sen. Betsi DeVries, and the Superintendent of the Concord School District to discuss a House bill dealing with the school district’s charter. The attorney general’s office found that Teague ran afoul of the law by meeting with lawmakers privately and issued a public warning and ordered Teague to register retroactively as a lobbyist and pay the $50 annual filing fee. The finding has raised concerns about the propriety and application of the current registration requirement, including calls for legislative reform of the statute.
Photo of New Hampshire State Capitol Building by Nikopoley on Wikipedia.
October 6, 2010 •
Lawmakers and Lobbyists Indicted in Alabama Vote-Selling Scheme
Federal investigators have unsealed an indictment against four Alabama legislators, three lobbyists, two casino owners, and two others for their participation in an alleged bribery and kickback scheme.
The indictment, the result of a months-long joint investigation by the FBI and the Alabama Attorney General’s office, accuses the business owners of hiring the lobbyists to conduct “a full-scale campaign to bribe and coerce state legislators and others into supporting pro-gambling legislation that they favored”, according to Alabama Assistant Attorney General Lanny Breuer in this CNN article.
The state senators named in the criminal complaint are Larry Means, James Preuitt, Quinton Ross, and Harri Anne Smith. Several of the charges levied carry maximum penalties of significant prison time and fines of up to $250,000.
Photo of a casino by Raul654 on Wikipedia.
October 6, 2010 •
Ask the Experts – Charitable Contributions
Here is your chance to “Ask the Experts” at State and Federal Communications, Inc.
Q. As a registered lobbyist, I am often contacted by elected officials to make a corporate contribution to the officials’ charity of choice, foundation, or scholarship fund. Is this legal? Am I required to disclose these contributions on my lobbying reports?
A. This scenario happens more and more every day. Even though the official does not derive direct, political contributions for his or her campaign, such charitable contributions nonetheless result in positive exposure for the official, goodwill by the lobbyist, and beneficiaries that include the underprivileged, the sick, and the elderly. Furthermore, the monetary amount of corporate charitable donations can surpass the amount of permissible political contributions under campaign finance law.
Most states allow a lobbyist’s employer to make charitable contributions at the behest of an elected official and there are no reporting obligations. Some of the other jurisdictional requirements include:
FEDERAL: Pursuant to House and Senate Rules, charitable contributions made by a registered lobbyist at the behest or designation of a legislative member or employee are prohibited, unless the member or employee has designated the contribution to a charitable organization in lieu of an honorarium.
Please note, however, a charitable organization established by a person before that person became a covered official – and where that covered official has no relationship to the organization after becoming a covered official – is not considered to be established by a covered official.
NEW YORK: Charitable contributions made at the behest of a public official are not permitted.
NEW JERSEY and NEVADA: The charitable contribution is allowed but is not reportable as long as the contribution is not made in the official’s name.
CALIFORNIA: The contribution is permissible but must be reported by the official, not the lobbyist or the employer.
CONNECTICUT: The charitable contribution is permissible and is reported as a lobbying expenditure.
DELAWARE: The contribution is reported as a gift.
DISTRICT OF COLUMBIA: The contribution is reported as other.
WYOMING: The contribution is only reported if it exceeds $500.
UTAH: Charitable contributions given for a political purpose are reportable.
If clients who subscribe to our Executive Source Guide on Lobbying Laws™ have further questions about other jurisdictions, they can always check the particular jurisdiction in the online resources. Or, clients can call us if they have some special information need.
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.
September 24, 2010 •
Canada Expands Lobbyist Reporting Requirements
The Registry of Lobbyists approved changes to the Lobbyist Registration Act significantly expanding the scope of reportable activities.
Under the new rules, lobbyists are required to report contact with Members of Parliament, Senators and certain staff members affiliated with the Official Opposition.
Additionally, these officials are now subject to Canada’s five-year “revolving door” restrictions forbidding certain officials from becoming lobbyists.
September 23, 2010 •
Lobbying News from Guam
Governor signs a new law affecting lobbying registration and reporting.
The governor of Guam has signed legislation replacing its existing lobbying law with new provisions requiring registration for legislative lobbyists and reporting on the 10th day of the month following the end of a quarter.
The legislation also contains a revolving door provision and penalties for violations of the act.
The Office of the Governor of Guam and the 30th Guam Legislature.
September 15, 2010 •
NYC Campaign Finance Board Issues Report
New York City campaign finance reforms alter nature of political contributions.
NEW YORK: A recent examination by New York City’s Campaign Finance Board shows that changes enacted before the 2009 mayoral election encouraged 34,000 New Yorkers to make campaign donations for the first time; drastically curtailed the role of businesses, political committees and lobbyists in campaigns; and caused a major drop in donations from those doing business with the city.
The Campaign Finance Board report found that New York City’s newly promulgated rules diminished the role of businesses, political committees and unions in campaign fund-raising. They now account for 7.2 percent of all funds available to candidates. In the last election for State Assembly and Senate candidates, such contributions accounted for 66.6 percent of all the money raised. New York City’s system has become a model for campaign finance reform based upon these results.
Photo of the New York City Hall by Momos on Wikipedia.
September 2, 2010 •
Lobbying News: Nevada
Nevada to Increase Lobbying Registration Fees for 2011.
The Nevada Legislative Ethics Commission has announced it will increase lobbyist registration fees for 2011. The fee has been set at $300 for paid lobbyists, triple the current amount. The fee for unpaid lobbyists will remain at $20.
According to the Lobbyist Registration Overview:
“The penalty for failure to file any monthly expenditure report(s) or to file late is $10 per day until the report(s) is submitted.”
If you have any questions, the Registration Office contact is (775) 684-6800.
Here is the overview from the Nevada Legislative Web site.
Photo by Ryan Jerz in Wikipedia.
September 2, 2010 •
Proposed Cuyahoga County Ethics Code to Be Debated
A draft ethics code for the new Cuyahoga County government will be the subject of a public meeting later this month.
The proposed Cuyahoga County ethics code is the product of a review conducted by a working group of volunteers who reviewed the ethics practices of 13 similar counties. The proposed code includes provisions for lobbyist registration and reporting, campaign finance disclosure, and “pay-to-play” provisions for public contracts.
The code calls for a new five person entity called the Cuyahoga County Ethics Board which will oversee ethics education and enforcement as well as a County Ethics Officer who would be empowered to render advisory opinions, process and initiate ethics complaints, and conduct investigations.
Finally, the new code provides for whistleblower protection for county employees who report suspected illegal or unethical conduct.
August 31, 2010 •
Ask the Experts – Calculating Your Pro-Rata Share of Salary
Here is your chance to “Ask the Experts” at State and Federal Communications, Inc.
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.
Here is a question we have been asked many, many times by clients over the years.
Q. How do I most accurately calculate my pro-rata share of compensation when I am registered as a lobbyist in five different states? Do I take my gross annual salary and divide it by five?
A. If you take your gross annual salary and divide it by five, you will undoubtedly over-report your compensation. Although you can never go wrong over-reporting, you should also strive for accurate reporting, especially in this instance.
Think of your lobbying in terms of hours. Review your calendar a month, or even a week, at a time to determine the number of hours you lobbied in a particular state. Now, assign a dollar value to those hours, and the result is accurate reporting.
To do this, follow this formula:
1. Take your gross annual salary and divide it by 2,080 (52 weeks in a calendar year multiplied by 40 hours per week). This is your hourly rate.
2. Multiply the number of hours you lobbied by your hourly rate. This amount is the reportable pro-rata share of your compensation for lobbying in that state.
Here’s an example:
1. Gross annual salary is $120,000.
2. $120,000 divided by 2,080, is an hourly rate of $57.69.
3. Fifteen hours lobbied in a particular state during a reporting period, multiplied by the hourly rate of $57.69, is $865.35. In this example, this is your reportable pro-rata share of your compensation for lobbying.
Of course, you have work weeks that exceed 40 hours. And you also go on vacation. Using 2,080 as the number of work hours in a calendar year is a generally accepted accounting principle that will sustain scrutiny of even the most stringent of state auditors.
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.
August 27, 2010 •
New Ethics Ordinance for Broward County
The Broward County Board of Commissioners has passed a new ethics ordinance.
Commissioners, their family members, and their staff will no longer be permitted to accept gifts from lobbyists registered with the county, employers of registered lobbyists, or vendors or contractors of the county. Commissioners will not be permitted to be employed as lobbyists or engage in lobbying activities before municipalities or other local government entities within the county.
Further, family members and office staff of a commissioner will not be permitted to lobby before the Board of County Commissioners or other local government entities within Broward County.
August 26, 2010 •
Lifting the Ban: National Legislative Conferences
Lobbyists are familiar with the gift restrictions, limits, and bans in those jurisdictions where they are registered. There are many states across the country, such as North Carolina and Tennessee, that completely prohibit lobbyists from providing any type of gift or meal to a legislator. However, many of these states have exceptions to their rules when legislators are attending national conferences, such as the National Conference of State Legislatures’ Annual Legislative Summit.
North Carolina, which has a notoriously strict gift ban, permits lobbyists to provide meals and beverages at events held in conjunction with legislative conferences, provided certain conditions are met. In order for the gift exception to apply, either all members of the senate, house, recognized legislative caucus, or the entire general assembly must be invited, and at least 10 individuals associated with the lobbyist or the lobbyist’s organization must attend.
Kentucky does not have a strict ban against lobbyists providing meals to legislators, but there is a $100 annual limit. However, if there is an event where all members of the house or senate, or approved caucus are invited, the amount spent on food and beverages is not counted against the $100 limit.
Not only do many states have exceptions to their gift laws in relative to national legislative conferences, but some also have different reporting requirements. States like Missouri and Georgia allow for group reporting, rather than naming each legislator that attended. In South Dakota, lobbyists are not required to report their expenditures at national conferences at all, provided that the legislature is not in session at the time.
August 25, 2010 •
Pennsylvania Lawmakers Receive Gifts from Lobbyists
State lawmakers received at least $67,000 worth of gifts last year, according to statements of financial interest filed with the Pennsylvania Ethics Commission.
State officials must report tangible gifts of more than $250 per year from any source and transportation, lodging, and hospitality worth more than $650. Lobbyists were the most generous with legislators who have power to direct and control funding. For instance, Senate Appropriations Committee Chair Jake Corman received a $4,000 Super Bowl trip from a Pittsburgh law firm whose lobbyists represent a variety of clients, including utility companies, hospitals, wine and beer distributors, and banks.
Those who provide the gifts and travel are not necessarily trying to buy support for particular legislation, but they are buying lawmakers’ time according to one Harrisburg lobbyist, who asked not to be named. He said he frequently takes lawmakers to dinner but does not give tangible gifts. He said most often, gifts come from lobbyists whose interests already are in sync with the lawmaker’s policy positions.
State and Federal Communications, Inc. provides research and consulting services for government relations professionals on lobbying laws, procurement lobbying laws, political contribution laws in the United States and Canada. Learn more by visiting stateandfed.com.