February 9, 2006
Lobbying Commission Enforces New Rules on Gift Limits
By DANNY HAKIM, NY TIMES

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ALBANY, Feb. 8  The state's Lobbying Commission has begun enforcing a $75 annual gift limit for lobbyists, restraining their ability to shower money on legislators, the commission's executive director said Wednesday.

But in a potent symbol of how gaping the loopholes are in the state's gift rules, the director, David M. Grandeau, also lamented a proposal submitted by two rail companies seeking to sponsor a trip for state legislators, staff members, their families, and other state workers, ferrying them by private train to Montreal from Albany.

The companies, Canadian Pacific Railway and the New York Susquehanna and Western Railway, plan to pay for the train ride as well as breakfast, lunch and dinner for all the invited guests, pending the commission's approval.

Because the railroads have set up an informational forum in Montreal regarding their business interests, the event is likely to fall outside the state's gift ban, though the commission has not yet responded to the plan submitted by Canadian Pacific.

"This is actually the kind of loophole that allows the Jack Abramoffs of the world to operate," Mr. Grandeau said, referring to the Washington lobbyist at the center of a widening scandal. A lawyer for Canadian Pacific, Mark F. Glaser, declined to comment about the request after the meeting.

As for the state's $75 gift ban, the commission has until recently interpreted it as pertaining to separate gifts. As a result, lobbyists could buy legislators gifts of $74.99 or less  dinners, rounds of golf, concert tickets  as often as they pleased.

But it is not certain that the new policy of an annual limit will stick. The lobbying panel's administrative staff is enforcing the ban only because the commission last year adopted a set of guidelines used by the state's Ethics Commission that members did not fully realize included a new gift policy.

On Wednesday, the commission deferred voting on whether to support the new interpretation until its meeting on Feb. 23, since three new commissioners were appointed to the six-member panel this week.

Among the veteran commissioners, Andrew G. Celli Jr. and Patrick J. Bulgaro, appointees of Democratic legislative leaders, said they supported the new policy, while Kenneth J. Baer, an appointee of the Republican Senate majority leader, Joseph L. Bruno, would not say how he would vote.

Civic groups were disappointed that the commission did not vote Wednesday.

"There's not a lot of deep thought on whether you support a gift ban of $75 per incident or one for $75 per year," said Blair Horner, the legislative director of the New York Public Interest Research Group.

The stricter gift ban would hardly end the flow of money. Aside from current loopholes that permit Montreal rail excursions, for example, lobbyists can pour money into campaign accounts that legislators use for meals, hotels or travel.

On Wednesday, in something of a reversal from his previous position, Mr. Grandeau said that he would support recommending to the Legislature a total gift ban with no exceptions. The commission would need to approve such a proposal.

The commission also reached a settlement in a matter involving David L. Paterson, the Democratic Senate minority leader who is now a candidate for lieutenant governor. Last year, Mr. Paterson flew to Albany from Westchester on a developer's jet while ill with pneumonia so he could attend the governor's State of the State address.

On Wednesday, the commission imposed a $13,500 civil fine on the developer, of which Mr. Paterson will pay $4,500.

"Now that the lobbying commission has adjusted its rules, I will comply with its determination," Mr. Paterson said in a statement.

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