FAQs about North Carolina s Ethics and Lobbying Laws (Revised February 2013)

Transcription

1 FAQs abut Nrth Carlina s Ethics and Lbbying Laws (Revised February 2013) Nrth Carlina has enacted a series f ethics and lbbying laws that significantly increased the state s regulatin f interactins between Duke persnnel and cvered state fficials. This dcument prvides general infrmatin abut ne f many imprtant aspects f these laws the gift prvisins as well as general guidance regarding cmmn Duke interactins with state fficials that may implicate the ethics and lbbying prvisins. In this dcument, Duke persnnel refers t faculty, staff and all ther persns emplyed by r representing Duke University r any cmpnent f Duke Medicine r Duke University Health System. Duke persnnel must be aware f and cmply with state ethics and lbbying laws, including the gift prvisins, when planning r engaging in any activity with any state fficial that invlves Duke r is undertaken n Duke s behalf. These FAQs are intended as a general reference and are nt cmprehensive; are subject t revisin as applicable law and related regulatry guidance develps; and d nt cnstitute legal advice. Duke is required t reprt certain gvernment relatins-related expenses t state regulatrs, including sme items falling within the gift prvisins. Yur assistance will be required t enable Duke t prepare these reprts. Accrdingly, Duke persnnel are strngly encuraged t cnsult with the apprpriate DU r DUHS gvernment affairs ffice befre engaging in any gvernment relatins activities invlving Duke r n Duke s behalf. Specific questins regarding Nrth Carlina s gift ban and gift reprting requirements shuld be directed t the DUHS Office f Gvernment Relatins ( ). Frequently Asked Questins 1. What d the gift prvisins say? The prvisins impse tw gift bans. First, any legislatr, legislative emplyee r ther cvered state fficial is prhibited frm knwingly accepting a gift frm a lbbyist r lbbyist principal (such as Duke). Secnd, any cvered state fficial is prhibited frm knwingly accepting anything f mnetary value frm any ther persn (including an individual r grup, business rganizatin, cmmittee r assciatin) whm the fficial knws r has reasn t knw (i) is ding r seeking t d business f any kind with the fficial s emplyer; (ii) is engaged in activities that are regulated r cntrlled by the fficial s emplyer; r (iii) has financial interests that may be uniquely and substantially r materially affected by the fficial s perfrmance r nnperfrmance f their fficial duties. Bth bans prhibit direct gifts as well as indirect gifts thrugh intermediaries. 2. What gifts are cvered? Gifts are defined as anything f mnetary value given r received withut valuable cnsideratin by r frm a lbbyist, lbbyist principal [r ther persn described in the FAQ abve], unless it falls within ne f the fllwing exceptins: 1. Anything fr which a cvered state fficial pays fair market value, r face value if shwn;

2 FAQs abut NC Ethics and Lbbying Law page 2 f 6 2. Cmmercially available lans made n terms nt mre favrable than generally available t the general public in the nrmal curse f business if nt made fr the purpse f lbbying; 3. Cntractual arrangements r cmmercial relatinships r arrangements made in the nrmal curse f business if nt made fr the purpse f lbbying; 4. Academic r athletic schlarships based n the same criteria as applied t the public; 5. Campaign cntributins prperly received and reprted under state law; 6. Expressins f cndlence related t a death f an individual, sent within a reasnable time f the death, if the expressin is ne f the fllwing: (i) a sympathy card, letter, r nte; (ii) flwers; (iii) fd r beverages fr immediate cnsumptin; r (iv) dnatins f $200 r less (per death per dnr) t a religius rganizatin, charity, the state r a plitical subdivisin f the state. 3. Which state fficials are cvered by the gift prvisins? There are fur general categries f cvered fficials: 1. Legislatrs and legislative emplyees ; 2. Public servants, such as members f the Cuncil f State, the Gvernr s Cabinet, vting members f state bards and certain ther state emplyees (including certain UNC and state cmmunity cllege bard members and administratrs); 3. Judicial fficers, such as state justices and judges, district attrneys and clerks f curt; and 4. Candidates fr state-level public ffice and newly elected fficials. The state s list f cvered psitins and bards may be fund nline here: The state s list f cvered individuals currently serving in/n the abve psitins/bards may be fund nline here: The list f candidates fr public ffice may be fund nline here: 4. Are any gifts t cvered state fficials permitted under the state gift prvisins? Yes. Gifts that fall within ne f the fllwing categries and meet all requirements f the related statutry exceptin are permitted: 1. Fd and beverages fr immediate cnsumptin in cnnectin with any f the fllwing: A Duke gathering with at least 10 r mre individuals in attendance pen t the general public, prvided that a sign which is reasnably designed t cnvey that the gathering is pen t the general public is displayed at the gathering.

3 FAQs abut NC Ethics and Lbbying Law page 3 f 6 A Duke gathering t which the entire bard f which a public servant is a member, at least 10 public servants, all the members f the Huse f Representatives, all the members f the Senate, all the members f a cunty r municipal legislative delegatin, all the members f a recgnized legislative caucus, all the members f a cmmittee, a standing subcmmittee, a jint cmmittee r jint cmmissin f the Huse f Representatives, the Senate, r the General Assembly, r all legislative emplyees are invited, and ne f the fllwing applies: At least 10 individuals assciated with Duke actually attend, ther than the cvered persn r legislative emplyee, r the immediate family f the cvered persn r legislative emplyee. All Duke emplyees, bard members, fficers, r members, lcated in Nrth Carlina are ntified and invited t attend. Fr purpses f this exceptin nly, the term invited means that written ntice ( is acceptable) is sent by at least ne hst r spnsr f the gathering cntaining the date, time, and lcatin f the gathering at least 24 hurs in advance f the gathering t the specific qualifying grup listed abve. If it is knwn at the time f the written ntice that at least ne spnsr is a lbbyist r lbbyist principal (i.e., Duke), the written ntice als must state whether r nt the gathering is permitted under this exceptin. (Nte: Fr further infrmatin abut the invitatin, see FAQ number 5 belw.) 2. Infrmatinal materials relevant t the duties f the cvered persn. 3. Reimbursement fr reasnable actual expenditures f the cvered state fficial fr fd, beverages, registratin, travel, ldging, ther incidental items f nminal value, and entertainment, in cnnectin with (i) their attendance at an educatinal meeting fr purpses primarily related t their public duties and respnsibilities; r (ii) their participatin as a speaker r member f a panel at a meeting. prvided the fllwing cnditins are met: The reasnable actual expenditures shall be made by a lbbyist principal (i.e., Duke), and nt a lbbyist. Any meeting must be attended by at least 10 r mre participants, have a frmal agenda, and ntice f the meeting has been given at least 10 days in advance. Any fd, beverages, transprtatin, r entertainment must be prvided t all attendees r defined grups f 10 r mre attendees as part f the meeting r in cnjunctin with the meeting. Any entertainment must be incidental t the principal agenda f the meeting. If the cvered state fficial is participating as a speaker r member f a panel, then he r she must be a bna fide speaker r participant. 4. A plaque r similar nnmnetary mement recgnizing individual services in a field r specialty r t a charitable cause. 5. Gifts accepted n behalf f the State fr use by the State r fr the benefit f the State. 6. Anything generally made available r distributed t the general public. 7. Gifts given r received as part f a business, civic, religius, fraternal, persnal, r cmmercial relatinship prvided all f the fllwing cnditins are met: The relatinship is nt related t the cvered state fficial s public service r psitin.

4 FAQs abut NC Ethics and Lbbying Law page 4 f 6 The gift is made under circumstances that a reasnable persn wuld cnclude that the gift was nt given fr the purpse f lbbying. 8. Fd and beverages fr immediate cnsumptin and related transprtatin prvided all f the fllwing cnditins are met: The fd, beverage, r transprtatin is given by a lbbyist principal (i.e., Duke) and nt a lbbyist. The fd, beverage, r transprtatin is prvided during a cnference, meeting, r similar event and is available t all attendees f the same categry as the recipient. The recipient f the fd, beverage, r transprtatin is a directr, fficer, gverning bard member, emplyee, r independent cntractr f ne f the fllwing: The lbbyist principal giving the fd, beverage, r transprtatin. A third party that received the funds t purchase the fd, beverages, r transprtatin. 9. Fd and beverages fr immediate cnsumptin at an rganized Duke gathering t which a public servant is invited t attend fr purpses primarily related t the public servant s public service r psitin, and t which at least 10 individuals, ther than the public servant, r the public servant s immediate family, actually attend, r t which all Duke emplyees, bard members, fficers, r members, wh are lcated in a specific Nrth Carlina ffice r cunty are ntified and invited t attend. 5. What must I d t cmply with the law when inviting a cvered persn t a Duke gathering? Fr purpses f the law, the term invited means a written ntice ( is acceptable) frm at least ne hst r spnsr f the gathering; cntaining the date, time, and lcatin f the gathering; and given at least 24 hurs in advance f the gathering t the specific qualifying grup. (See FAQ number 4, exceptin 1, abve.) The written ntice must als state whether r nt the gathering is permitted under the gift ban exceptins, fr example: This gathering is in cmpliance with ur understanding f the requirements and restrictins f the Nrth Carlina Ethics Act and Lbbying Law, NCGS 138A-32(e). 6. What must I reprt and t whm? Fr gatherings held at Duke r spnsred by Duke, the names f cvered persns wh participate and any assciated expenses must be itemized in mnthly r quarterly reprts filed by Duke University with the Nrth Carlina Department f State. Expenditures must be reprted in the same mnth that the event takes place. Fr example, yu must reprt: The per-persn cst f fd and beverages served at any gathering attended by ne r mre cvered persns All expenses related t a cvered persn s participatin in an educatinal meeting, seminar, cnference, panel presentatin r similar event

5 FAQs abut NC Ethics and Lbbying Law page 5 f 6 When reprting expenditures fr events held specifically fr lbbying, the entire cst f the event must be reprted, nt just the gift given r prvided t the designated individual(s) attending the event. Nn-gift reprtable expenditures made fr lbbying are expenses and charges incurred fr items and/r services prvided in cnnectin with the lbbying event, such as planning and rganizing services, printing services and supplies, facility rental and set-up charges, fd supplies and services, name badges, flwers, and ther decratins. T assist Duke in filing the required reprts, please cmplete and submit the gvernment relatins questinnaire. (PDF, 170 KB). 7. What cmmn Duke activities may be affected by the ethics and lbbying laws, and hw can they be made t cmply? Serving fd and beverages at events (examples: ribbn cutting, building dedicatin, pening f a new facility, campus r facility tur). Acceptable in mst cases, if ffered t everyne fr immediate cnsumptin. Giving anything f mnetary value (examples: sweatshirt, autgraphed ftball, bk, bathrbe, event ticket, ther tangible item). Generally nt acceptable, n matter hw inexpensive. Presenting a plaque, certificate r similar nn-mnetary mement recgnizing the individual s services. Acceptable. Prviding infrmatinal materials (brchure, departmental newsletter, fr example). Acceptable, if relevant t the duties f the state fficial. Special services fr a cvered persn wh seeks medical care at Duke. Nt acceptable. N special services that have any mnetary value such as cmplementary valet parking, flwers, r gifts f any kind may be ffered r prvided. Refreshments ffered at a ne-n-ne, individual meeting with a cvered persn. Nt acceptable. N fd r beverages may be ffered. Refreshments ffered at a small grup meeting with ne r mre cvered persns. Generally acceptable, if within an applicable exceptin. Fd and beverages must be available t everyne fr immediate cnsumptin. 8. What abut ur bard members and fficers wh are cvered persns? What can we prvide fr them? Fd and beverage fr immediate cnsumptin and related transprtatin may be ffered if these amenities are available t all attendees at the same meeting. 9. Where can I g fr further infrmatin n state ethics and lbbying laws? Further infrmatin is available n the fllwing DUHS and state gvernment websites: DUHS Office f Gvernment Relatins: NC Ethics Cmmissin:

6 NC Secretary f State, Lbbying Cmpliance Divisin: FAQs abut NC Ethics and Lbbying Law page 6 f 6