Question

A Municipal Finance Professional (MFP) lives in State A. The MFP gives $200 to the election campaign of a personal friend who is running for Governor of State B. Which statement is TRUE? A The payment will not result in the employing firm being banned from doing municipal securities business with State B because the amount is below the $250 de minimis amount B The payment will not result in the employing firm being banned from doing municipal securities business with State B because it was made based on a personal relationship C The payment will not result in the employing firm being banned from doing municipal securities business with State B because it only applies to payments made in State A D The payment will result in the employing firm being banned from doing municipal securities business with State B

Answer 1

Answer:

B The payment will not result in the employing firm being banned from doing municipal securities business with State B because it was made based on a personal relationship.

Explanation:

The rule of de minimis applies to persons making donations to candidates vying for elective positions.  $250 de minimis is applicable to a person who will vote for a candidate in an election.  If a person will not vote for the candidate, the de minimis is $150.

In this case, the MFP will not be voting for the candidate.  She is allowed to donate only $150.  Any excess will be refunded.  However, since the MFP is making the donation on his personal capacity, the firm as a separate entity will not be penalized for what the MFP does with her money.  It is likely that the firm does not even do contracts with the municipality.  However, they are not based in the same area.