Updated and Expanded: Covington Announces 2023 Edition of Pay-to-Play Rule Survey

Updated and Expanded: Covington Announces 2023 Edition of Pay-to-Play Rule Survey

February 8, 2023, Covington Alert

For over a decade, Covington has published a detailed survey of the "pay-to-play" laws of all 50 states. Now, for the first time, Covington is updating the survey with a new section covering federal pay-to-play rules, in addition to those of the 50 states and many cities and counties. This new section details the federal government contractor contribution ban and pay-to-play rules adopted by the Securities & Exchange Commission (SEC Rule 206(4)-5 and SEC Rule 15Fh-6), the Municipal Securities Rulemaking Board (MSRB Rule G-37), Commodity Futures Trading Commission (CFTC Rule 23.451), and Financial Industry Regulatory Authority (FINRA Rule 2030).  

To help in-house lawyers and compliance professionals with reviewing proposed contributions, Covington publishes a detailed survey of the pay-to-play laws of the federal government, all 50 states, and all major cities and counties. This almost 460-page survey:

• Details all federal and statewide pay-to-play rules
• Describes over one hundred “specialty” pay-to-play rules that apply to contractors doing business with certain agencies or companies operating in certain regulated industries, including those that apply to investment firms that manage state or local public funds, lottery and gaming companies, public utilities, redevelopment contractors, and insurance companies
• Includes pay-to-play laws for major cities and counties across the country.

The survey also includes user-friendly charts and legal citations answering questions such as:

• Which donors are affected?
• Which contributions are restricted?
• Is there a de minimis exception? What are the other exceptions?
• Which types of contracts are covered?
• How long after a contribution does the restriction run?
• Does the rule restrict political fundraising and other solicitations?
• Are there reporting and disclosure requirements?
• What are the penalties?

Covington is pleased to be able to offer the survey for purchase in its entirety. Alternatively, groups of states may be made available at discounted rates. For questions or to purchase the survey, please contact paytoplaysurvey@cov.com.