Virginia Gift Rules Add Notification Requirements

Kevin Newman, Esq.
Research Associate

Gov. Terry McAuliffe approved changes to Virginia’s gift rules, marking the fourth consecutive year lawmakers have amended ethics provisions. House Bill 1854 (Senate Bill 1312), changes the due date for notifications to public officials, creates an additional notification obligation for lobbyists, and affects the types of gifts lobbyists may provide to public officials.

Notifications to public officials, previously due December 15, are now due January 10, covering the previous calendar year. This notification requires lobbyists to send a copy or summary of pertinent information to each legislative or executive official identified by name on the lobbyist disclosure form.

House Bill 1854 also creates a new notification requirement. Lobbyists must send to each official a summary of all gifts given to the official or a member of his or her immediate family between January 1 through adjournment of the regular session. The summary must be provided within three weeks of adjournment sine die and the statute specifically excludes the annual reconvened session.

The definition of widely attended event, for purposes of lobbyist reporting and conflict of interest provisions, is amended to eliminate the exception for those “who share a common interest.” Some used this exception to the $100 limit on gifts from lobbyists as justification for providing luxury suite tickets to football games. Lawmakers added an exception, however, for attendance at a reception where hors d’oeuvres and beverages are provided and can be consumed while standing or walking.  

Generally, the bill takes effect on July 1, 2017, but the new notification requirements were included in an emergency clause and take effect immediately.

 [The details for this article have been updated on our website in the Gift Law and Key Dates sections of the Lobbying Compliance Laws and Procurement Lobbying Compliance Laws for Virginia.]

Summary of Changes UPDATE
Note Recent Changes to Compliance Regulations 

Michael Beckett, Esq., Research Manager

AUSTIN, TEXAS: The ordinance repealing and replacing Chapter 4-8 of the City Code relating to lobbying is effective June 1, 2017. Ordinance No. 20160922-005 establishes new registration requirements, changes the method of reporting, and requires lobbyist compensation to be reported. Additionally, the registration threshold will no longer hinge solely on an expenditure or compensation amount, but will also include time compensated for lobbying as a registration trigger. The Office of the City Clerk will create new online lobbyist registration and reporting forms to be available by June 1.

FEDERAL: Amendments to the 2017 Consolidated Appropriations Act passed into law on May 5 include two provisions affecting campaign financing. House Resolution 244 explicitly prohibits the Internal Revenue Service from making new rules concerning the political speech or activity of 501(c)(4) organizations. The legislation also prohibits the Securities and Exchange Commission from finalizing, issuing, or implementing any rule, regulation, or order regarding the disclosure of political contributions, contributions to tax-exempt organizations, or dues paid to trade associations. The 708-page omnibus spending bill funds the U.S. government through September 30.

MARYLAND: The Public Integrity Act of 2017 (House Bill 879) was signed by Gov. Larry Hogan. The bill alters many provisions related to ethics law. The bill prohibits former lobbyists from participating in a case, contract, or other specific matter as a public official or employee for one calendar year after the termination of their registration if the former regulated lobbyist previously assisted or represented another party in the matter. Additionally, the governor, lieutenant governor, attorney general, comptroller, and treasurer are prohibited from lobbying legislative matters for one calendar year after leaving office. The bill requires a regulated lobbyist who serves on a board or commission and is disqualified from participating in a specific matter to file a statement of recusal with the board or commission describing the circumstances of the conflict. The bill is effective October 1, 2017.  

MASSACHUSETTS: A state ban on political contributions to candidates by businesses was upheld by a Suffolk Superior Court judge. Massachusetts campaign finance law prohibits contributions from businesses, but allows contributions from labor unions. Two businesses active in a fiscally conservative advocacy group challenged the law hoping for a change in favor of businesses wishing to contribute, asserting the same political contribution rules should apply to businesses and unions. The Office of Campaign and Political Finance argued businesses are different from unions and the state is within its rights to regulate each entity differently, maintaining the state's interest in preventing corruption or the appearance of corruption. Under the upheld law, individuals can contribute $1,000 per year to candidates and labor unions can contribute up to $15,000.

MISSOURI: Parts of a campaign finance law approved by Missouri voters in November have been ruled unconstitutional. U.S. District Court Senior Judge Ortrie Smith issued a ruling permitting corporations and labor organizations to make contributions to campaign committees only supporting or opposing ballot measures and permitting political action committees to receive contributions from other political action committees. The court also ruled the ban on contributions to PACs by heavily regulated entities to be unconstitutional. Finally, the ruling permanently enjoins the Missouri Ethics Commission from interpreting certain campaign finance provisions in any manner inconsistent with previously issued advisory opinions. Contribution limits will continue to apply only to contributions to candidates unless a contribution to a continuing committee or PAC is restricted or designated for a specific candidate. The court stayed any injunctive relief ordered for 45 days to allow the state to review the ruling and to allow for an opportunity to appeal.

Legislation We Are Tracking

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' online compliance publications for lobbying laws, political contributions, and procurement lobbying. They can be found on a jurisdiction's home page.

Summaries of major bills are also included in the monthly Summary of Changes email update 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.

Jurisdiction Added to our Website

The number of municipalities and regional governments our research associates track continues to grow. We now cover almost 300 municipalities and local governments. This is part of a continuous effort to better serve the needs of our clients.

In that effort, we have added abridged jurisdictions to our website. These entries, condensed due to the limited number of relevant local laws, provide the core information our clients need for their government relations work.

The new jurisdictions are:

ASK THE EXPERTS

State and Federal Communications’ Experts Answer Your Questions

Here is your chance to “Ask the Experts” at State and Federal Communications, Inc. Send your questions to experts@stateandfed.com. (Of course, we have always been available to answer questions from clients that are specific to your needs, and we encourage you to continue to call or email us with questions about your particular company or organization. As always, we will confidentially and directly provide answers or information you need.) Our replies are not legal advice, just our analysis of laws, rules, and regulations.

State and Federal Communications, Inc.
Scrapbook

We Celebrate Employee Anniversaries

Each month at our staff meeting, Elizabeth acknowledges the employment anniversaries of our staff.
In April and May we acknowledged eight team members.
[Row 1:  Shamus Williams, Esq., Compliance Associate and Gamble Hayden, Federal Compliance Assistant.
Row 2:  Mandy Lebus, Compliance Assistant, Holly Johnston, Esq., Compliance Associate,
and Adrienne Borgstahl, Esq., Research Associate.
Row 3:  Lisa Stutzman, Research Assistant and Nicolette Koozer, Sr. Graphics Coordinator]
These employees are exceptional members of the staff.  Congratulations to you all.

Plan to say hello at future events where State and Federal Communications, Inc.
will be attending and/or speaking regarding compliance issues.