Dec 30, 2006
New ethics law tightens rules but leaves loopholes to exploit.  
Half of the seats on committee created to oversee law are empty 

James Romoser - Winston-Salem Journal

On Monday, a new state law designed to tighten ethics and lobbying regulations will go into effect, but sweeping changes to the culture at the state capital appear unlikely. 
 
The new, tougher standards - such as a restriction on lobbyists' gifts to government officials - contain numerous exceptions. 
 
Lobbyists themselves say that the law probably won't change much about how they do their jobs. 
And the newly created ethics committee, which in three days will become responsible for interpreting and helping enforce the new standards, is half vacant and unable to hold its first meeting. 
 
"It'll have some minor effect," said Don Beason, one of the state's most influential lobbyists, referring to the new law. Beason's clients include BB&T, BellSouth and Cingular Wireless. "I think it will cause everybody to be very careful for a while." 
 
The law was passed overwhelmingly by the General Assembly this year in the midst of lobbying scandals involving people who worked for the lottery industry. 
 
Some advocates say they hope that the law will help end what they see as overly cozy relationships between lobbyists and state legislators. Lobbyists, critics say, are able to "wine and dine" legislators in order to gain influence for the industries or corporations they represent. A key provision of the new law restricts what kinds of gifts lobbyists can give to legislators or other government officials. Starting Monday, for instance, it will be illegal for a lobbyist to buy a meal for a legislator at a one-on-one meeting, whether it's a full steak dinner at an upscale restaurant or a cup of coffee in the legislative cafeteria. 
 
"It will change the way we have to hold events with legislators in our association," said Dean Plunkett, the executive director of the N.C. Beer & Wine Wholesalers Association. "It will also change the way that a lot of lobbyists entertain legislators, because that's a pretty clear part of the law." 
 
Still, the restriction on lobbyists' gifts contains many exceptions. For instance, it does not apply to so-called educational meetings or to public events attended by a group of people. 
Because of that provision, the gift restriction could actually result in more money, not less, being spent by lobbyists on legislators, said Susan Valauri, the president of the N.C. Professional Lobbyists Association. 
 
"It's intended to chill any one-on-one lobbying and expending of funds," Valauri said. "The irony is, you could see a larger amount reported for expenditures of lobbying because it may turn out that there are larger events held." 
 
The gifts that are permitted under the new law are subject to more rigorous disclosure requirements. Lobbyists must report them regularly in paperwork filed with the state. 
Another provision of the law bars lobbyists from donating money to candidates for political office. But they are free to organize fundraisers for candidates. 
 
Louisa Warren, the director of the N.C. Coalition for Lobbying and Government Reform, said she believes that the law is a good start but is far from perfect. 
 
"You will not see as many people purchasing lunches in the cafeteria, on that very surface level," Warren said. "Will it mean that there won't be things going on behind closed doors? I don't think so." 
 
Already, the office of the State Ethics Commission has received hundreds of requests for judgments about what specifically would and would not be permitted under the new law. The commission was established by the law to help people abide by its tenets and to investigate ethics complaints. 
But the commission cannot even hold its first meeting, because it does not have a quorum. The commission is supposed to have eight members; so far, only four slots have been filled. 
 
Robert Farmer, who was the chairman of the old state ethics board and was reappointed to the new commission, said that the commission is already falling behind. It cannot issue rulings on ethical questions without having full membership. 
"It bothers me, in that I'd like to have a full commission because we've got so much work to do," Farmer said. 
 
Four of the commission members are supposed to be appointed by Gov. Mike Easley. So far, he has appointed three. A spokesman for the governor gave no estimate on when the fourth would be appointed, but said that it would be done "in a timely manner." 
 
Two more commission members are appointed by the speaker of the N.C. House. Speaker Jim Black, D-Mecklenburg, made his two appointments, but one stepped down. A spokeswoman for Black said she expects a replacement to be named soon. 
The final two appointments come from Senate President Pro Tem Marc Basnight, D-Dare. He has not made either of his appointments. His office said he hopes to make the appointments within a few days or weeks. 
 
Of all the questions that have come in to the commission's office, Farmer said, the large majority have concerned one topic: what lobbyists are allowed to give to legislators, and what legislators are allowed to take. 
 
"About 80 percent of them deal with one thing. That's gifts," Farmer said. "Everybody seems to be concerned about either giving or receiving gifts - or looking for a loophole."