NC Coalition for Lobbying & Government Reform
19 W. Hargett Street, Suite 701
Raleigh, NC 27601
919-833-0092
www.nclobbyreform.org

For Immediate Release February 28, 2007

Contact: Louisa Warren Phone: 919-833-0092

Sweeping Lobbying & Ethics Reform Soon to Take Effect
HB 1843 Goes into Effect January 1, 2007

Raleigh – January 1, 2007 marks the official start date of North Carolina’s new comprehensive lobbying & ethics reform law.

The tougher standards, pushed by the NC Coalition for Lobbying & Government Reform and the general public amidst national and statewide scandals around government corruption, are expected to result in sweeping changes to the ways lobbyists do business.

The law, overwhelmingly approved by lawmakers on July 27, 2006, requires all spending by lobbyists on lawmakers and top government officials to be fully and frequently reported, effectively closing the goodwill lobbying loophole. The new law also imposes:

• A six month cooling-off period before legislators and top government officials can become lobbyists.
• First-time regulation of executive branch lobbying.
• Gift restrictions for what lawmakers and top government officials may receive from lobbyist.
• Tougher ethical standards that will be regulated by a newly-created Independent Ethics Commission.
• A ban on campaign contributions from lobbyists to lawmakers.

“The new law provides a healthy boost for democracy,” said Bob Phillips, Executive Director of Common Cause North Carolina. “Now, there will be greater accountability and transparency on the lobbying process than ever before, and that’s a victory for all citizens.”

“We’re pleased that lawmakers have decided to address the flow of money from lobbyists to elected officials,” said Molly Diggins, State Director of the NC chapter of Sierra Club. “This is an important safeguard to ensuring that the public interest is upheld above moneyed interests.”

“The citizens of North Carolina must have confidence in our elected form of government for it to work as it was intended,” said John Rustin of the NC Family Policy Council. “The ethics and lobbying law changes approved by the General Assembly in 2006 represent a significant step toward restoring the public’s trust in our government and creating a more level playing field for all of our state’s citizens.”

“Our lawmakers have recognized the need to change the culture of politics in North Carolina,” added Bill Wilson, Associate State Director of AARP North Carolina. “By passing HB 1843, our representatives sent the message that citizens deserve to have a voice unfettered by wealthy special interests.”
The NC Coalition for Lobbying & Government Reform is a broad, diverse group of organizations and civic leaders that successfully pushed for tougher lobbying & ethics laws in North Carolina in 2005 and 2006.

Note to reporters:

North Carolina’s new lobbying law restricts rather than bans gifts from lobbyists.

Under certain circumstances, lobbyists will still be able to “wine and dine” lawmakers and top state officials thanks to nearly a dozen exceptions that have been written into the new law. [138A-32(e)]

Exceptions for “educational meetings” will allow lobbyists to pay for lawmakers travel, lodging, food and even entertainment expenses when they are incidental to the meeting.

Another key exception will allow lobbyists to provide free food and drink to lawmakers and top state officials at certain gatherings.

In addition, another exception allows certain Commerce Department officials and other top government workers to accept gifts if they’re connected to “industry recruitment, promotion of international trade or the promotion of travel and tourism.”

“We’re pleased to see some steps taken to limit lobbyists’ gift-giving,” said Louisa Warren, Director of the Coalition. “But the Coalition would like the exceptions to be tightened. Lobbyists should not be in the business of spending money on lawmakers unless it’s for an exclusive educational or public policy purpose.”