As the impact of the coronavirus (COVID-19) is felt around the country, states and cities are welcoming help from the private sector, including donations of medical supplies and equipment, professional services, and the use of real property. To facilitate this support, some jurisdictions have loosened or clarified their ethics laws to facilitate these “gifts” to government agencies.
In New York, for example, Governor Andrew Cuomo signed an executive order lifting the state’s gift ban for contributions and donations that assist the state in its emergency response effort. The state’s anti-bribery statute will not be applied to executive officials who seek such donations.
Anticipating a need for additional facilities, Connecticut Governor Ned Lamont issued an executive order empowering agencies to expedite real property transactions to address the emergency, including by modifying certain rules governing the disclosure of gifts and campaign contributions by state contractors and prospective contractors, competitive bids, and confidentiality requirements.
Other jurisdictions have reminded potential donors of applicable gift rules. The City of Chicago recently issued an advisory opinion directed to medical supply and pharmaceutical companies concerning requirements that agencies promptly disclose gifts to the city, along with the value and source.
As businesses and other organizations heed the call for help, it is important to remember that even under the current circumstances, gifts to government agencies must be handled in a manner that complies with applicable gift rules, anti-bribery laws, and disclosure requirements.
Venable continues to monitor these developments in real time. Please reach out to Venable’s Political Law Practice for assistance with any compliance challenges your business or organization is facing.