Center for Policy Alternatives
CPA - Header Photo

Ethics Reform

Recent scandals have exposed major gaps in ethics laws.
Ethics controversies have called attention to the flow of special interest money into the hands of officeholders at the state and federal levels. The Jack Abramoff and Tom Delay scandals have received national attention. At the same time, former Illinois Gov. George Ryan was found guilty of racketeering and mail fraud. Ohio Gov. Bob Taft pled guilty to not disclosing gifts and golf outings paid for by lobbyists. A Tennessee investigation led to arrests of five current and former lawmakers on charges of accepting bribes, conspiracy and extortion.
Lobbying the states has become a billion dollar industry.
Special interest groups are spending record amounts of money to lobby state legislators and executive officeholders on behalf of their policy goals. In 2004, lobbyists reported nearly $1 billion in spending at the state level, and that amount continues to grow. Lobbyists outnumber lawmakers five to one. More than 38,000 individual lobbyists spend nearly $130,000 per state legislator.1 Pharmaceutical companies alone spent more than $44 million lobbying state governments to defeat efforts to lower prescription drug prices in 2003 and 2004.2
The excessive influence wielded by lobbyists undermines public confidence in the political process.
American voters think the political system is broken because special interest money corrupts the process and gives unfair advantages to the wealthy and well-connected. Seventy percent of Americans believe that the “political system is so controlled by special interests and partisanship that it cannot respond to the country’s real needs.”3 Seventy-two percent believe that “public opinion” has too little influence.4
Effective ethics laws limit the influence of lobbyists on lawmakers.
Strong laws set an annual limit or adopt an outright ban on gifts from lobbyists—including free meals, travel and other perks. Such laws also create a “cooling off” period during which ex-government officials may not lobby on behalf of the private sector, thereby closing the “revolving door.” Independent commissions that monitor compliance are necessary to effectively implement ethics laws.
States have taken action to restore public confidence by adopting stricter ethics rules.
  • In 2006, Pennsylvania Gov. Ed Rendell issued an executive order that requires lobbyists to register and report spending. New Jersey has expanded its reach over the activities of lobbyists, imposed a registration fee, and increased the state’s audit powers. Colorado, Florida, New York and North Dakota have undertaken efforts to change their lobbyist registration policies and procedures. Louisiana recently began regulating executive branch lobbyists.
  • Idaho and New Hampshire toughened their disclosure laws. Tennessee recently enacted a law that requires disclosure of contributions over $250 from state contractors.
  • Six states (AL, FL, IA, KY, LA, NY) impose a two-year waiting period before legislators can become lobbyists and 20 states (AK, AZ, CA, CT, GA, HI, KS, MD, MA, MS, NJ, NM, OH, PA, RI, SC, SD, TN, VA, WA) impose a one-year moratorium.5
  • Seven states (FL, KY, MA, MN, SC, TN, WI) ban gifts outright and New York has imposed an annual gift limit of $75. Tennessee recently prohibited lobbyists from making campaign contributions and banned the governor from fundraising during the legislative session. North Carolina created a no-gift registry for legislators who do not wish to be offered gifts from lobbyists.
  • Twenty-three states (AL, AR, CA, CT, FL, HI, KS, KY, LA, MA, ME, MS, MO, MN, NE, NV, OK, OR, PA, RI, TX, WV, WI) have an independent ethics commission to oversee compliance.6
Endnotes
  1. Neil Gordon, “State Lobbyists Near the $1 Billion Mark,” Center for Public Integrity, August 10, 2005.
  2. M. Asif Ismail, “Industry Puts $44 Million into State Lobbying,” Center for Public Integrity, April 6, 2006.
  3. Newsweek poll conducted by Princeton Survey Research Associates, October 9-10, 2003.
  4. Harris Interactive poll, February 9-16, 2004.
  5. Leah Rush and David Jimenez, “States Outpace Congress in Upgrading Lobbying Laws,” Center for Public Integrity, March 1, 2006.
  6. Kenneth Vogel and Leah Rush, “Watchdogs on Short Leashes,” Center for Public Integrity, December 13, 2001.
Updates