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Tuesday, March 22, 2011

State Ethics Law Overview: Oh you mean ME?

Attending a State Ethics Reform Update recently which was sponsored by Bradley, Arant, Boult, and Cummings, I received an opportunity to hear first-hand the details and nuances of the changes in ethics reform and work to understand what the new Alabama Ethics Law holds for the business community. Always on point to help bring the issues to the business leadership, this forum was supported by the Birmingham Business Alliance. Myla Calhoun Choy, Legal Council for BBA, served as the moderator. David Stewart, partner with Bradley, Arant, Boult and Cummings, along with Jim Sumner, Director of the Alabama Ethics Commission, led the discussion of the impact on business and I assure you it is not “business as usual” anymore.




You may re call that in late 2010, the Alabama Legislature was called in to special session by then outgoing Governor Bob Riley for the purpose to increase transparency and accountability in government at the State, County and local levels. More specifically was the express purpose of limiting the amount of influence that lobbyists, and those who pay lobbyists can have on the political process. Senate Bill 14 by Senator Bryan Taylor, and House Bill 11 by Representative Paul DeMarco, makes extensive changes to the definition of lobbying, lobbyists, and items and hospitality that may be provided to officials.



DeMarco also fought for mandatory training. Given the changes, this seems not only logical, but clearly necessary. Many private industry representatives are required to read, train and sign corporate compliance and ethical standard agreements. Clearly we should look for the same minimum standard from our elected officials and effective January 1, 2011 it is now required of lobbyists and their principals. These bills truly transformed the law, and Ethics Commissioner Jim Sumner declared, “Life as we have known it in the past no longer exists.”



Hospitality and entertainment are the big changes here. Anything that is purely social is no longer allowed. Previously a lobbyist could spend just about whatever her or she wanted per day and did not need to report until a $250.00 threshold had been reached. Now, such gatherings must involve an educational function, may pertain to economic development, and must meet the criteria for a widely attended event. Therefore an Industrial Development Board working session is okay, but golf is not. The food and beverage limit is now limited to $25 or less per occurrence and not more than $150 per year per public official or public employee.



Are you a public official or public employee? You may just be. If you were elected, appointed or employed at the state, county, or municipal level of government or government instrumentalities these changes are now in affect. That is a lot of folks, and it may include you.



New rules, and new day, so make certain you understand how it affects you.

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