A state appellate court has ruled that a trial court judge must reconsider the state’s large fine for lobbying law violations. Don Beason, once considered one of the state’s most influential lobbyists, was originally fined $111,000 for a violation of the state’s disclosure policy for lobbyists. This fine was eventually reduced to $30,000 after the court ruled it was too large. Beason was working on overturning the state’s “Buy America” law for Sigma Corporation, a New Jersey company who imports foreign-made iron and steel.

The state claims Beason was paid with money funneled from an Indian iron exporters’ trade association and other companies through Sigma and Beason knew of this arrangement and failed to disclose. The trial court ruled that state law defines a lobbyist as someone who communicates directly with legislators or their employees and there was no evidence Beason directly contacted anyone for these clients supposedly funneling money through Sigma.

The appellate court however found the trial court failed to consider a second aspect of Beason’s case; whether Beason’s activities for the client constituted lobbying. The trial court must rule on that issue and then can determine whether the state has the power to fine Beason.

There is no time frame on when the trial court will hear the second part of this case.

The first rule details when non-lobbyist employees must register as a lobbyist. In North Carolina, an employee must register as a lobbyist if a significant part of that employee’s job duties include lobbying. The new rules stipulate that this threshold is met if at least five percent of an employee’s duties include direct or goodwill lobbying during any rolling 30 day period. Once this threshold is met, the employee must register as a lobbyist within one business day.

The second rule explains what must be included when providing a description of a reportable expenditure for the lobbyist reports. The description must identify what was given, who the third party was that received the expenditure, and the name of the event or meeting where the expenditure was given.

The third rule describes how to determine the immediate family member who is connected with a reportable expenditure. On the reports, the name of the designated individual or immediate family member connected with the expenditure must be reported. The person that must be identified is the person who either received or benefited from the expenditure, or who requested the expenditure be made on someone’s behalf.

The fourth and final rule effecting lobbying details what must be reported in connection with a lobbying event. The entire cost of a lobbying event must be reported, rather than just the costs of any gifts given. Examples of the non-gift expenditures that must be reported include supplies, facility rental, food, name badges, flowers and other decorations, planning services, and all other expenses and charges incurred in connection with the lobbying event.

The North Carolina General Assembly will have a one-day special session January 9, 2013, before convening the regular session on January 30, 2013. This one-day special session is for both houses to elect officers, adopt rules and organize the upcoming session.

This is the first time the general assembly has decided to hold this one-day special organization session, but both parties have expressed interest in continuing the idea in the future.

Photo of the North Carolina State Legislative Building by Jayron32 on Wikipedia.

DELAWARE: The Delaware General Assembly adjourned sine die early in the morning on July 1, 2012.

NORTH CAROLINA: The North Carolina General Assembly adjourned on July 3, 2012.

Arizona: “Dismissal of Arizona redistricting lawsuit requested by commission” by The Associated Press in the Arizona Capitol Times.

Kansas: “Remove politics, and redistricting map falls in line” by Scott Rothschild in the Lawrence Journal World.

Kansas: “Redistricting hearings begin in Kansas City” by Andy Marso and Aly Van Dyke in the Topeka Capitol-Journal.

Missouri: “Missouri’s U.S. House and statehouse districts will remain, court rules” by Elizabeth Crisp in the St. Louis Post-Dispatch.

North Carolina: “N.C. group: Panel, not lawmakers, to draw districts” by the Associated Press in the Greensboro News & Record.

Texas: “Redistricting concerns remain in Texas” by Paul J. Weber in the Daily Oklahoman.

North Carolina citizens voted in the 2012 primary last night, but some races did not yield a true winner. According to state law, if no candidate receives 40% of the vote in a primary, a second primary (or runoff) election is needed.

Over 10 races, including republican races for Lieutenant Governor and three U.S. House seats, will be headed to a runoff election.

Thanks to a new law passed by the North Carolina General Assembly last year, the primary will be held 10 weeks following the first primary, rather than the usual seven weeks. The new law took effect, because at least one of the races headed to a runoff was a U.S. Congress seat.

The runoff election will take place on July 17, 2012.

Alaska:  “High court to hear redistricting petition” by The Associated Press in The Anchorage Daily News.

Kansas: “GOP redistricting fight could mean courts make final decision” by John Hanna (Associated Press) in the Lawrence Journal World.

North Carolina: “Redistricting sets stage for fall elections” by Emery Dalesio (Associated Press) in the Winston-Salem Journal.

Washington:  “Supreme Court upholds state redistricting plan” by Warren Kagarise in the Issaquah Press.

The North Carolina General Assembly convened as scheduled for a special session on April 23, 2012.

Both the Senate and the House will meet again on April 25, at which time they are expected to adjourn until the scheduled regular legislative session begins on May 16, 2012.

Photo of North Carolina State Legislative Building by Jayron32 on Wikipedia.

Arizona: “Ariz. lawmakers want elected officials to disclose use of public funds” by Howard Fischer in the East Valley Tribune.

Georgia: “Advocates push for ethics funding” by Charles Edwards on WABE News.

“Watchdog groups demand more money for ethics board” by in the Atlanta Journal-Constitution.

Maryland: “Maryland Ethics Panel Suggests Reducing Local Disclosure” by Brian Witte (Associated Press) on NBC Washington.

“Bill would require online disclosure” by Michael Dresser in the Baltimore Sun.

Minnesota: “Lobbying violations vex understaffed Minnesota regulator” by Brad Schrade in the Star Tribune.

North Carolina: “Dome: Few ethics complaints probed, report shows” by John Frank in The News & Observer.

NORTH CAROLINA: Wake County Superior Court Judge Paul Ridgeway has cleared former lobbyist Don Beason of misconduct, finding parts of North Carolina’s lobbying reform law are ambiguous as applied and the secretary of state overreached in fining Beason.

The court held that Beason does not have to pay the $30,000 fine imposed on him. Secretary of State Elaine Marshall fined Beason a record-setting $111,000 in 2010, an amount that was later reduced, for failing to make required disclosures about companies he was representing.

Judge Ridgeway stated North Carolina law defines a lobbyist as someone who communicates directly with legislators or their employees, but there was no evidence Beason directly contacted anyone on behalf of the companies he represented. Additionally, because the law gave the state ethics commission the authority to interpret the act and the secretary of state the power to administer it, Marshall overstepped her authority in interpreting the act and fining Beason.

NORTH CAROLINA:  A special session of the North Carolina General Assembly convened Sunday evening.

The session is scheduled to adjourn on Tuesday, November 29, 2011.

The session was called to consider bills vetoed by Governor Bev Perdue, revise redistricting plans, and address election law bills.

Photo of the North Carolina State Legislative Building by Jayron32 on Wikipedia.

A three judge panel of the 4^th U.S. Circuit Court of Appeals ruled unanimously to uphold North Carolina’s ban on registered lobbyists making campaign contributions to candidates for the Legislature and the Council of State.

A lobbyist with the state chapter of the American Civil Liberties Union challenged the ban on contributions, saying it violated her right to freedom of speech and association.

The appeals court upheld a district court ruling by stating the ban was a “valid exercise of North Carolina’s legislative prerogative” to address potential corruption and the appearance of corruption.

The North Carolina General Assembly adjourned the special session concerning redistricting on Thursday, July 28, 2011.

During the session, the redistricting process for the state was completed.

Further, five of Governor Beverly Perdue’s vetoes were overridden.

The Legislature is expected to convene another special session on Monday, September 12, 2011.

Photo of the North Carolina State Legislative Building by Jayron32 on Wikipedia.

House Bill 139, a bill aimed at limiting pay-to-play activities in the state, began moving through committees last week.

The bill seeks to limit vendors who have a state contract of greater than $25,000 from contributing in excess of $500 per election to a candidate or candidate committee for a public servant if the public servant would have authority over the contract with the vendor.

House Bill 139 is similar to a bill introduced during the prior legislative session; however, that bill was left out of a series of ethics reforms eventually approved by the legislature.

Photo of the North Carolina State Legislative Building by Jayron32 on Wikipedia.