The regulation of interactions between the private sector and public officials are changing rapidly at the federal, state, or municipal level. For example, the McCain-Feingold bill was the most consequential campaign finance reform since the Federal Election Campaign Reform Act was passed in 1971; S.1, signed into law in September 2007, represents the most significant change to Congressional lobbying/gifts/ethics rules since Watergate; and twenty-three states have revised their lobbying laws in the last four years and many others are enacting more restrictive gift and ethics laws for public officials. The effect of these dramatic changes is three-fold.
First, the types of conduct that are now regulated are far broader than in the past and implicate, among other things, communications with legislative and executive branch officials, entertaining a public official at a meal, reception, or conference, and attempting to do business with a state or federal government.
Second, the risks of non-compliance have increased substantially. Simply put, violating lobbying, gifts/ethics statutes, procurement regulations, or campaign finance law can result in legal jeopardy, both civil and criminal; damage to a corporation’s reputation; and lost business opportunities, both formal (e.g., disqualification from doing business with a state or municipality for multiple years) and informal (e.g., refusal by jurisdictions to enter into contracts out of fear of scandal).
Third, the rules regulating political activities are now more diverse than ever. Jurisdictions have revised their laws in different ways, meaning activities that are permissible in one jurisdiction are often impermissible in another. This variation can be from state to state, and even from city to city.
Beyond Compliance
Our Political Law attorneys are well positioned to help our clients navigate this complex, high stakes environment. We have developed comprehensive compliance strategies for our clients in the areas of Lobbying Regulation, Gifts and Entertainment/Ethics Laws, Campaign Finance and Pay-to-play Laws, and Revolving Door and other government contractor compliance issues. We also provide individually tailored advice for time-sensitive, complex questions in these areas that arise in the day-to-day course of business. Our attorneys go beyond compliance to take proactive steps and influence regulatory outcomes by engaging with state and federal regulators in the application of these laws to our clients’ respective industries. Political Law attorneys have backgrounds in regulation and regulation theory that are blended with the practical experience developed through years of advising clients with regulatory issues. Rather than simply taking political compliance regimes as they are, we examine such regimes critically with an eye toward regulatory best practices. Our goal is to mix knowledge with creative, yet practical, solutions to our clients’ business needs.
For example, our attorneys assisted the Securities Industry and Financial Markets Association (SIFMA) in seeking clarification of the Municipal Securities Rulemaking Board’s (MSRB) interpretation of Rule G-37, which limits political contributions by municipal securities firms. With our assistance, SIFMA obtained valuable additional guidance in applying the MSRB’s interpretation of the rule, which had largely chilled the political activity of several major financial services firms.
Key Facts
- Members of our Political Law team have served in the White House, Congress, in federal agencies and courts, in global-leading accounting and consulting firms, and on Wall Street. We apply this wide range of experience in developing strategies to address the complex legal and political issues underlying problems that implicate both private business and public policy.
- Our Political Law team not only brings to bear its substantial experience in the political arena on the issues our clients face, but also integrates the collective knowledge of the firm to evaluate and craft solutions from a cross-disciplinary perspective.
- The Political Law team prides itself on our knowledge and attention to our clients’ businesses. Our approach to each question employs this knowledge to ensure that our advice is tailored to meet the requirements of our client’s business needs and strategic concerns, across a variety of industries.
Practice Strengths
Campaign Finance and Pay-to-Play Laws
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As in lobbying and gifts, each level of government sets its own rules regarding political contributions and campaign finance regimes. Although there are some similarities across regimes, laws regulating political contributions vary widely from jurisdiction to jurisdiction with respect to who may give and the potential impact on business activities and the consequences of reaching or exceeding contribution limits. We have substantial experience guiding clients through the thicket of laws governing political activity by corporations, partnerships and individual executives, corporate PAC activity. We advise clients on matters that range from registering federal PACs in local jurisdictions to legal and optical implications of political activity by corporations or their executives. Our attorneys also have extensive familiarity with state pay-to-play regimes, those laws aimed at restricting connections between political contributions and receipt of government business. This experience is informed by our unmatched expertise in the area of MSRB Rule G-37 and G-38, and its restriction of political contributions by broker-dealers engaged in municipal securities business.
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Gift and Entertainment and Governmental Ethics Laws
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Like lobbying, gifts to and entertainment of public officials are regulated at the federal, state, and municipal level. In fact, these rules are often more challenging than lobbying because different government agencies at the same level of government often have their own rules (e.g., the development of different ethical standards by many federal Executive Agencies, or the differing landscape of ethical rules between municipal commissions in the same jurisdiction). Gift laws, like lobbying laws, are also in a state of flux - several states, as well as both houses of Congress have revised their gift laws in the past 12 months. We assist clients in a number of industries in operating at the highest level of ethical conduct in their business dealings with public officials. Our attorneys also provide guidance to former government officials and their employers on the restrictions that apply after leaving public office and entering the private sector.
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Government Contractor Ethics and Compliance
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The government contractor compliance and regulatory structure is evolving as contractors assume increasing responsibility for performing crucial functions at the federal, state, and local levels. We assist contractors in several industries to navigate the changing regulatory and compliance landscape.
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Lobbying Regulations
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Recently, the scope and application of lobbying regulation at the federal, state, and municipal levels have undergone significant changes. The definition of what constitutes lobbying has been broadened substantially in recent years, and jurisdictions vary widely in their approach to the definition of lobbying and requirements and restrictions for lobbyists. We have helped numerous clients adapt to the evolving requirements for registration, reporting, and restriction of lobbying activity as new aspects of their daily business become subject to lobbying regimes. Our attorneys also have expertise in advising clients on the requirements of registration under the Foreign Agents Registration Act (FARA).