SPECIAL ETHICS LAW MEMO

TO: Maryland Non-Profit Independent Colleges and Universities

SUBJECT: Lobbying Registration Exemptions - General Information

Section 15-701(b)(v) of the State Ethics Law provides an exemption from the lobbying provisions of subtitle 7 for trustees, certain administrators and faculty acting on behalf of Maryland independent non-profit colleges and universities. The exemption includes lobbying executive or legislative action and generally permits:

1. Trustees, Presidents and certain other high level staff to have contact with legislators and executive branch personnel without registration as a lobbyist on the basis that most of the contact was directed towards educational and community relations rather than lobbying;

2. Faculty to provide expertise to the General Assembly and the executive branch without the necessity to register as a lobbyist on the basis that the expertise assisted the State in a neutral manner without representing the interests of the academic institution; and

3. Officials to be invited to attend general campus events such as concerts, plays, graduations, and lectures without the invitations’ resulting in a requirement to requirement to register as a lobbyist.

The questions and answers listed below are intended to provide some general guidance regarding the impact of the law. This is not a formal opinion of the State Ethics Commission, but the Commission has reviewed this document.

1. What college officials and employees may qualify for a lobbying registration exemption and under what circumstances?

Answer: The law specifically lists trustees, administrators and faculty as exempt for activities relating to their official duties. Administrators are eligible for the exemption if their work is not primarily related to lobbying.

2. How do these provisions impact on Presidents, other administrators and lobbyists?

Answer: Presidents and other administrators are not required to register unless, during a six-month lobbying reporting period or a lobbying year, more than 50% of their time is spent on lobbying and activities in direct support of lobbying. The State Ethics Commission considers the term administrators to include high-level personnel and not lower level employees who have administrative duties to be eligible for the exemption. Educational institution government relations personnel would not generally be considered to be administrators for the purpose of the lobbying law, and they would be governed by the general test for lobbying registration and reporting.

3. What is the scope of the faculty member exemption?

The faculty member exemption is very broad but does not extend to situations in which they may be acting as compensated representatives for entities other than their regular academic employer.

4. If an educational institution hires a fee or contract lobbyist, how is this treated under the Law?

Answer: If fee or contract lobbyists are used, they are required to register and report under the general provisions of the law.

5. If an institution has registered a fee, contract or staff lobbyist, are gifts to officials that are arranged or made by these lobbyists reported on the lobbyist activity report?

Answer: Any lobbying related gifts and some other expenditures are to be reported by the lobbyists as required in the Ethics Law.

6. What is the status of institution related foundations, corporations, medical facilities and similar entities under the Law?

Answer: Generally, these types of entities are not considered to be private Maryland non-profit independent educational institutions eligible for the special lobbying law exemption.

7. If an educational institution engages in grass roots lobbying, is this activity exempted under the Law?

Answer: Grass roots lobbying continues to require registration and reporting when the statutory thresholds are reached.

8. How is gifting of entertainment, meals, beverages or admission activity to be treated under the Law?

Answer: Non-lobbying specific campus activities such as community luncheons, awards dinners, graduations, ribbon cuttings, plays, concerts and lectures generally do not require lobbying registration or reporting. Specific lobbying oriented gifting or entertainment require registration and reporting by the institution if the registration thresholds are reached, even if the person making the gift is exempt from registration. For example, holding a legislative reception, taking officials out to dinner in Annapolis during the legislative session, or providing gifts of tickets to events generally are not exempted from the registration and reporting requirements.

9. How do the changes in the Law impact on gift prohibitions?

Answer: Generally, the new law does not change the gift acceptance restrictions for officials or employees of the State or the disclosure requirements for officials. Even if an educational institution does not have to register or report as a lobbyist, its status as a regulated entity and its other relationships with the State require adherence to the gift prohibitions of the law. Where an educational institution or its representatives is required to register as lobbyists, provisions of the law prohibiting a regulated lobbyist from making certain gifts also apply.

10. What impact does the amended law have on the campaign finance and contingent fee provisions of the lobbying law?

Answer: If a person performs non-exempted acts requiring lobbyist registration, the campaign finance and contingent fee provisions apply. These provisions apply to any educational institution fee or contract lobbyist.

11. How does the Law impact on the interaction between member institutions and the Maryland Independent Colleges and Universities Association (MICUA) for the purpose of lobbying registration or reporting?

Answer: MICUA continues to be subject to the lobbying registration and reporting law in the same way that it was prior to the 1996 amendments. For registration and reporting purposes, there may be issues regarding the activities of MICUA and its members and whether an expense or activity is a MICUA function or that of an individual institution. Each situation will have to be judged on its own merits and many factors may be considered, including, but not limited to: 1) whether the activity is authorized within MICUA, 2) the invitation process, 3) content of written materials, 4) purposes of the activity, and 5) in some instances, handling of funds. The witness registration exemption under the provision of §15-701(b)(2)(iii) would continue to be available to MICUA.

(10/9/02)