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.

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Photo of Lawrence H. Norton Lawrence H. Norton

Larry Norton, a former general counsel of the Federal Election Commission (FEC), advises clients on federal and state campaign finance laws, lobbying disclosure, gift and ethics rules, pay-to-play laws, and the tax implications of political activities. His clients include corporations and their PACs…

Larry Norton, a former general counsel of the Federal Election Commission (FEC), advises clients on federal and state campaign finance laws, lobbying disclosure, gift and ethics rules, pay-to-play laws, and the tax implications of political activities. His clients include corporations and their PACs, advocacy groups and trade associations, candidates, super PACs, lobbying shops and law firms, and high-net-worth individuals. Larry recognizes the unique issues facing organizations seeking to influence public policy and elections. He provides pragmatic and creative solutions to complex problems, troubleshoots new projects and programs, and helps clients manage their legal and reputational risks.

Photo of Ronald M. Jacobs Ronald M. Jacobs

Ron Jacobs focuses his practice on political law, nonprofit organizations, and crisis management, including congressional investigations, class actions, and regulatory investigations. Ron founded and co-chairs the firm’s nationally recognized Political Law practice. He advises clients on all aspects of state and federal political…

Ron Jacobs focuses his practice on political law, nonprofit organizations, and crisis management, including congressional investigations, class actions, and regulatory investigations. Ron founded and co-chairs the firm’s nationally recognized Political Law practice. He advises clients on all aspects of state and federal political law, including campaign finance, lobbying disclosure, gift and ethics rules, pay-to-play laws, and tax implications of political activities.

Meredith K. McCoy

Meredith McCoy provides experienced guidance to businesses, tax-exempt organizations, individuals, and political groups in their efforts to impact public policy and the political process. Meredith works with clients to understand their goals and make tailored recommendations for complying with the range of laws…

Meredith McCoy provides experienced guidance to businesses, tax-exempt organizations, individuals, and political groups in their efforts to impact public policy and the political process. Meredith works with clients to understand their goals and make tailored recommendations for complying with the range of laws that may affect their plans, including tax, campaign finance, lobbying disclosure, gift and ethics, and pay-to-play laws. Her previous experience as an attorney for the Federal Election Commission helps her foresee compliance challenges and evaluate risks facing Venable’s clients. She is skilled at providing practical, user-friendly guidance that helps clients make informed decisions and achieve their objectives.