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Major Changes in Gift Rules Greet Trump Administration

By Lawrence H. Norton, Ronald M. Jacobs & Cristina I. Vessels on January 10, 2017
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gift-1420830_640With a new administration coming into office, there will be many changes in Washington. One less noticed change comes from the U.S. Office of Government Ethics (OGE) and will affect how you interact with new executive branch appointees and those career employees who stay on from the prior administration.

OGE recently published amendments to the executive branch gift rules, which took effect on January 1, 2017. The amendments affect some of the most common ways in which individuals and organizations engage with federal officials and employees, including receptions, widely attended gatherings, and gifts based on a family or personal relationship.

Here are some of the most significant changes:

  • While “modest items of food and refreshment” have long been excluded from the definition of a “gift,” the new rules remove any doubt about whether alcoholic beverages fall in this category. The answer is they do not. Thus, in order for a federal official or employee to partake at a cocktail (or similar) reception, the event will have to comply with one of the specific “exceptions” under the gift rules, such as the exceptions for gifts of $20 or less, widely attended gatherings, or receptions hosted by the employee’s former employer when other former employees have also been invited to attend.
  • Executive branch employees must obtain written authorization prior to attending a widely attended gathering—regardless of whether the employee is speaking at the event. It is therefore important to issue invitations well in advance of such events to allow time for agency employees to get approval from their ethics offices. Another rule change allows a federal employee who is speaking at a widely attended gathering to attend a “speakers’ meal,” which is normally held on the day before the event.
  • The rules have long held that a gift based on a family or personal relationship may be accepted by a federal employee. Through an example in the new rules, employees are cautioned that a social media relationship alone does not establish that a gift is motivated by a personal relationship, rather than the position held by the employee. Any overtones of a business purpose will render a gift unacceptable.
  • A nonbinding section in the new rules provides that an employee should consider whether an otherwise permissible gift should be declined because the gift would create the appearance that the employee’s integrity or ability to act impartially may be compromised. Employees should consider such factors as the value and timing of the gift, as well as whether the donor has interests that may be substantially affected by the action or inaction of the gift recipient.

Whether your organization has a seasoned government affairs program or is newly considering the opportunities presented by a change in administration, Venable’s Political Law Practice Group can help you navigate gift rules and other ethics issues that arise along the way.

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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Photo of Ronald M. Jacobs Ronald M. Jacobs

Ron Jacobs focuses his practice on political law, nonprofit organizations, and crisis management, including congressional investigations, class actions, and regulatory investigations. Ron founded and co-chairs the firm’s nationally recognized Political Law practice. He advises clients on all aspects of state and federal political…

Ron Jacobs focuses his practice on political law, nonprofit organizations, and crisis management, including congressional investigations, class actions, and regulatory investigations. Ron founded and co-chairs the firm’s nationally recognized Political Law practice. He advises clients on all aspects of state and federal political law, including campaign finance, lobbying disclosure, gift and ethics rules, pay-to-play laws, and tax implications of political activities.

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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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