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Virginia Enacts Statutory Gift Restrictions

By Lawrence H. Norton on April 29, 2014
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As we described in a January 16 post, moments after being sworn in as Virginia’s 72nd governor on January 11, Governor McAuliffe signed an executive order imposing new gift restrictions on Executive Branch employees and officers and their immediate family members. The Executive Order applies only to individuals that work in Virginia’s Executive Branch. As expected, Virginia’s legislators have followed suit and have enacted their own ethics reform rules for members of the legislature and certain state and local officials.

The new law limits the value of gifts covered officials may solicit or accept from lobbyists, lobbyist principals, and government contractors to $250 annually from a single source (the law does not prohibit giving the gift, just receiving the gift). Although touted by the legislature as sweeping ethics reform, the new law has garnered significant attention not on what it covers, but what it does not cover.

First, the rules do not limit gifts from most individuals or groups. Only gifts from registered lobbyists, entities that retain or employ lobbyists, and government contractors are restricted. Personal gifts from corporate executives whose companies lobby state legislators or have government contracts are not affected. Notably, Governor McAuliffe’s Executive Order sweeps more broadly by barring gifts from lobbyists and the organizations that retain them, and limiting gifts from others.

TitleSecond, the $250 limit does not apply to “intangible gifts,” such as entertainment, hospitality, a ticket, admission, transportation, lodgings, and meals. Although many state ethics rules include exemptions allowing officials to participate in meetings, conferences, and other events at the expense of private parties, Virginia’s categorical exclusion of intangible gifts is unusually broad. As Robert McCartney of The Washington Post noted in his column, the advocacy group ProgressVA studied the issue and found that only 18 gifts out of 756 given during 2012 were tangible. In other words, the bill likely will have only a modest impact on gift-giving practices in Richmond. The law requires covered officials to disclose gifts from lobbyists, lobbyist principals, and government contractors (both tangible and intangible) given to officials and their family members.

Finally, keep in mind that contractors are also subject to a 2010 pay-to-play law that prohibits them from making campaign contributions or providing gifts valued more than $50 to the governor, the governor’s PAC, or certain executive branch officers if the value of a non-bid contract is $5 million or more.

Photo of Lawrence H. Norton Lawrence H. Norton

Larry Norton, a former general counsel of the Federal Election Commission (FEC), advises clients on federal and state campaign finance laws, lobbying disclosure, gift and ethics rules, pay-to-play laws, and the tax implications of political activities. His clients include corporations and their PACs…

Larry Norton, a former general counsel of the Federal Election Commission (FEC), advises clients on federal and state campaign finance laws, lobbying disclosure, gift and ethics rules, pay-to-play laws, and the tax implications of political activities. His clients include corporations and their PACs, advocacy groups and trade associations, candidates, super PACs, lobbying shops and law firms, and high-net-worth individuals. Larry recognizes the unique issues facing organizations seeking to influence public policy and elections. He provides pragmatic and creative solutions to complex problems, troubleshoots new projects and programs, and helps clients manage their legal and reputational risks.

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  • Posted in:
    Government and Public Policy
  • Blog:
    Political Law Briefing
  • Organization:
    Venable LLP
  • Article: View Original Source

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