Test Legal Handbook 2022

DATE: TO: FROM:

August 11, 2022 Mayor and City Council Ch uck Watts , City Attorney

SUBJECT:

Impact of State Government Ethics Act on Activities of City Officials and Employees

Under the State Government Ethics Act, Council members and other City officials and employees, may lobby legislators, legislative employees and members of the executive branch of state government on behalf of the City without being subject to any requirement imposed by the Act. "Lobbying" is broadly interpreted and is defined to cover influencing or any attempt to influence legislative or executive action, either directly or indirectly by just establishing and maintaining good relationships with any legislative and executive personnel. Council members and City officials and employees may also answer questions and respond to inquiries from state legislative and executive officials/employees without running afoul of the law. The City, as an organization or unit of local government, is also permitted to engage in the same activities cited above without being subject to the requirements of the Ethics Act. (See NCGS 210C-700(3) and NCGS Chapter 138A). However, depending on the situation, there may be limitations on the use of public funds on any gifts (including lunch, honoraria or souvenirs) to legislators, legislative employees or public officials in the executive branch of state government, including, among others, officials of state and community colleges and universities. When the City can provide these types of "gifts", the City may be subject to mandatory reporting requirements that carry penalties and civil fines for failure to comply. In 2017, the City hired McGuire Woods Consulting as a lobbyist to represent the City ’ s interests in Raleigh. Because the City hired a lobbyist, the City is considered a “ lobbyist principal ” and is subject to all the requirements and restrictions of the Ethics Act and lobbying laws like any other lobbyist principal. The City registers as a lobbyist principal with the Secretary of State’s Office, reports its lobbying expenditures, and becomes subject to prohibitions such as the gift ban. Under the gift ban, the local government cannot give gifts to state officials and employees covered under the Ethics Act unless the item is either not a gift as defined under the Ethics Act or falls under one of the Act’s narrow exemptions to the gift ban. Any Council member, city official or employee who has questions about activities that are and are not permitted under the State Ethics Act, should contact the City Attorney at 373-2320 for advice and counsel.

CDW/jgs