On November 16, 2016, Gov. Andrew Cuomo released a statement proposing plans to limit campaign contributions and close loopholes for those doing business with the state.

In response to contracting scandals at state universities, Cuomo intends to appoint inspectors general to investigate fraud and abuse at the State University of New York and the City University of New York.

Furthermore, Cuomo will appoint a chief procurement officer to review all state contracts and grants for the purpose of re-establishing public trust. The entire statement can be accessed here.

Photo of Governor Cuomo courtesy of Pat Arnow on Wikipedia.

Residents voted against an amendment to the Anne Arundel County Charter (Question C).

If passed, the ballot issue would have raised the current dollar amount of bids requiring competitive procurement for most procurement contracts from $25,000 to $75,000.

Bids under $75,000 would not be required to go through full competitive bidding.

County commissioners approved a new purchasing manual to ensure consistency and avoid impropriety within the county’s contracting process.

A new hiring manager was brought in last year to overhaul a Purchasing Department troubled for years with allegations of political meddling.

Pursuant to the new manual, the Commissioners Court will still approve contracts handled by the Purchasing Department, but will be unable to override the department’s vendor choices. These changes are the latest in a series of improvements following the federal indictment of a county commissioner for rigging bids and accepting kickbacks in 2014.

Gov. Jerry Brown signed into law a bill requiring persons submitting bids or proposals of $100,000 or more to state agencies to certify they are in compliance with the Unruh Civil Rights Act and the California Fair Employment and Housing Act.

The law is aimed at preventing state agencies from contracting with businesses that boycott Israel.

This law becomes effective January 1, 2017.

At any given time, more than 1,000 legislative bills, which can affect how you do business as a government affairs professional, are being discussed in federal, state, and local jurisdictions. These bills are summarized in State and Federal Communications’ digital encyclopedias for lobbying laws, political contributions, and procurement lobbying and can be found in the client portion of our website.

Summaries of major bills are also included in monthly email updates sent to all clients. The chart below shows the number of bills we are tracking in regard to lobbying laws, political contributions, and procurement lobbying.

The D.C. Council has preliminarily approved a bill that will bring more transparency and accountability to the government procurement process. Among other structural and procedural reforms, the measure establishes the Office of the Ombudsman for Contracting and Procurement.

The bill will need approval at a second reading before it is sent to the Mayor. A stricter reform measure that included a one year pay-to-play restriction failed to pass.

California Gov. Jerry Brown vetoed Assembly Bill 1200.

The bill would have revised the definition of lobbyist to include third-party consultants who work to influence governmental procurement.

The governor’s veto message said the bill is not necessary and cited the existence of numerous laws already regulating state procurement.

Vendors and lobbyists are now required to disclose campaign contributions and affirm the disclosed contributions were made without the expectation of a governmental benefit in return. The late-2015 amendment requires disclosure of contributions to county officials and county-level candidates if made on or after April 1, 2016.

While the amendment aims at promoting greater transparency of the procurement process, some have argued contributions to political parties and noncandidate committees allow contributors to remain out of public view.

Lobbying

“Lobbyists and Corporations, Arm-in-Arm” by Rani Molla for Bloomberg.com

“What is Shadow Lobbying? How Influence Peddlers Shape Policy in the Dark” by Libby Watson for Sunlight Foundation

Campaign Finance

“PAC Donations from Elderly Donors Draw Scrutiny” by Fredreka Schouten and Christopher Schnaars for USA Today

“George Clooney Certainly Has Raised Some ‘Obscene’ Amounts of Campaign Money” by Justin Moyer for Washington Post

Mississippi: “No Restrictions on Legislators as Mississippi House Turns Back Campaign Cash Rules” by The Associated Press for Mississippi Business Journal

Montana: “Judge Weighs Whether Low Contribution Limits Are Justified” by Matt Volz (Associated Press) for The Missoulian

Ethics

District of Columbia: “DC Schools Chief Asked Contractor for $100K” by Ben Nuckols (Associated Press) for Idaho Statesman

Elections

“New York Blowout Gives Donald Trump Big Boost in GOP Race” by Jenna Johnson and Philip Rucker for Washington Post

“Strong Showing by Clinton in Defeat of Sanders in New York Primary” by Abby Phillip, John Wagner, and Anne Gearan for Washington Post

Procurement

“Governments Struggle to Root Out Fake Minority Contractors” by Mattie Quinn for Governing

Gov. Butch Otter signed a procurement bill into law late last month, overhauling how the state makes purchases.

House Bill 538 repeals existing statutes in favor of a completely new chapter, dubbed the State Procurement Act. The Act requires training for state officers and employees, including ethics training, and modernizes purchasing procedures.

The new law takes effect July 1, 2016.

A bill revising the definition of lobbyist to include individuals attempting to influence state governmental procurement of $250,000 or more is awaiting a final vote in the California Assembly. The bill would not apply to in-house lobbyists; only consultants paid more than $2,000 a month to influence procurement would be required to register.

If passed, the new rule becomes effective January 1, 2017.

The Frederick County, MD Council has passed a new ordinance regarding county contracts and the size of the Frederick County Ethics Commission. The ordinance prohibits elected officials and certain family members for securing county government contracts.

Additionally, the ordinance increases the size of the Ethics Commission from five to seven members.

Q. I want to contribute to an acquaintance in Maryland.  I know there are pay-to-play restrictions.  What are my personal limitations?

A. Is your company “doing public business” with the state of Maryland?  “Doing public business” means having a single contract (an agreement in any form entered into by a governmental entity for a procurement) with a single governmental entity involving cumulative consideration of at least $200,000.  Governmental entity means: (1) the State, a county, a municipal corporation, or other political subdivision of the State; and (2) a unit of the State, a county, a municipal corporation, or other political subdivision of the State.

Contributions in Maryland are still permissible even though your employing organization is doing public business.  The issue is not permissibility, but whether disclosure is required.  If you are an officer or director and the contribution is $500 or more, it must be disclosed.

• Director is a member of the board of directors of a business entity
  [M.C.E.L. §14-101(g)].
• Officer includes an individual who serves as a business entity’s chief executive officer, president, vice president, secretary, treasurer, chief financial officer, managing partner, managing member, or principal or in any other formal or informal role in which the individual exercises substantial independent responsibility for managing the affairs of a business entity [M.C.E.L. §14-101(k)].

If you fall into either category, disclosure is required to the Board of Elections on May 31 and November 30.

You can directly submit questions for this feature, and we will select those most appropriate and answer them here. Send your questions to: experts@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.

Lobbying

California: “L.A. Ethics Commission OKs $47,000 in Fines for Lobbying Violations” by Emily Alpert Reyes for Los Angeles Times

Michigan: “Lansing Power Brokers: Law firms, others strengthen their lobbying corps” by Lindsay Vanhulle for Crain’s Detroit Business

New Mexico: “Ethics Commission Hits Dead End in Senate Panel” by Dan Boyd for Albuquerque Journal

Utah: “Free Lunches Becoming More Rare for Utah Legislators” by Lee Davidson for Salt Lake Tribune

Campaign Finance

Alaska: “North Slope Borough Mayor Charlotte Brower Pays $35,000 Campaign Fine” by Alex DeMarban for Alaska Dispatch News

Minnesota: “Minnesota Legislators Use Campaign Funds for Child Care, Pet Urns and Travel” by J. Patrick Coolican and Maya Rao for Minneapolis Star Tribune

Ethics

California: “Taking the Oath of Office Seriously to Fight Corruption in Southeast L.A. County” by Ruben Vives for Los Angeles Times

Ohio: “Convention Center Food Contract Prompts Criminal Investigation” by Lucas Sullivan for Columbus Dispatch

Elections

“Snapchat Bets Big on Quick-Fire Approach to Campaign Coverage” by Nick Corasaniti for New York Times

“Battle over Scalia’s Replacement Already Spilling into Senate Races” by Steven Mufson and Juliet Eilperin for Washington Post

“Campaigns Secretly Prep for Brokered GOP Convention” by Ben Schreckinger for Politico

Procurement

Texas: “Some Contractors Say New Texas Disclosure Law Confusing” by   for KXAN; Associated Press