By MATT CHANDLER
Buffalo Law Journal

The Buffalo Niagara Association of Realtors Inc. is in hot water with New York state over alleged ethics violations over gifts to elected officials.

The BNAR, the state Association of Healthcare Providers and United University Professions were all charged with violating the gift ban contained within the state lobbying law.

The BNAR is alleged to have held receptions in June 2008 and March 2009 at which members of the state Assembly and Senate were in attendance. The cost per person for the events was in violation of the law, which prohibits the giving or accepting of gifts of more than nominal value (defined as no more than the cost of a cup of coffee).

The charges were brought by the state Commission on Public Integrity, the group responsible for enforcing lobbying laws that became tougher with the passage of the Public Ethics Reform Act of 2007.

The commission has cited five other organizations for violating the law. Four admitted guilt and were fined $250 each for the infractions.

Walter Ayres, a spokesman for the Commission on Public Integrity, says that light penalty will be changing soon. The $250 fine is intended to give groups a break as they adapt to the new rules. Beginning in 2010, organizations won't get off so easy.

"For the state employees who accept the gift, the maximum penalty will now be $40,000," Ayres said. "On the lobbying side, the lobbyists who give the gift face a maximum penalty of $25,000 per gift."

A violation in 2009 that cost a group $250 could cost it a quarter of a million dollars or more in 2010.

Michael Cherkasky, chairman of the commission, said publicizing the investigations is proving effective in stemming the tide of violations.

"We have succeeded in making lobbyists, clients and state officials aware of the fact that the law has changed and that mere ‘meet and greet' events no longer are acceptable," he said in a prepared statement.

BNAR Executive Vice President John Leonardi said any impropriety was unintentional.

"We had two cocktails that we invited our legislators to," he said. "My interpretation and understanding of the laws and rules in New York state (is that the law) is kind of convoluted."

"We actually have put in place internal controls to make sure that we are analyzing all of their rules and we understand their rules," Leonardi added, "and we don't plan on violating them anymore."