E-News from State and Federal
Team: ONE PERFORMANCE ONLY!
Appearing one time only at the Public Affair Council
National PAC Conference is the Compliance Dream
Team! I am extremely excited and honored to pair up with
The Extra Honorable Ken Gross, The Mighty Honorable
Michael Toner, and New Kid on The Block Amol Naik from
Google to hear your confessions and questions.
This session will present a series of complicated and
pertinent compliance questions to the panel for our
expert response. There will also be an opportunity to
submit anonymous compliance missteps for us to hear and
provide corrective action.
This is bigger than Broadway…Larger than Hollywood. And,
it will only happen on Tuesday, February 28th
at Portofino Bay, Orlando, Florida. Join us at the
Public Affairs Council National PAC Conference.
Looking forward to seeing you out and about!
Elizabeth Z. Bartz
President and CEO
T - Amol Naik,
Google & Elizabeth Z. Bartz
B - Ken Gross, Skadden Arps & Michael Toner, Wiley Rein
Rico Updates Campaign Finance Provisions
Puerto Rico has passed the Law for the Control of Financing of Political
Campaigns in Puerto Rico. This law is a complete overhaul of all
previous campaign finance regulations and includes changes to the PAC
reporting requirements, campaign contribution limits, and pay-to-play
The law created new PAC reporting requirements. PACs must file quarterly
reports on the 15th day of the month following the end of a
calendar quarter. From July 1st of an election year until
December 31st of that year, PACs must file monthly reports by
the 15th day of the month following the reporting period.
From October 1st of an election year until November 30th,
reports must be submitted on the 15th and 30th day
of each month. A final report covering transactions after the January 1st
following the election must be filed 90 days after the election.
Because 2012 is an election year in Puerto Rico, the law makes
provisions regarding contribution limits. A contribution of up to $2,500
may be given by a PAC to a candidate between January 1, 2012 and March
18, 2012. An additional contribution of up to $2,500 may be given to
each candidate between March 19, 2012 and November 6, 2012. PACs may not
give more than $12,500 in the aggregate per election in 2012.
Puerto Rico has also joined the growing list of jurisdictions with
pay-to-play laws. Puerto Rico prohibits contributions while a
corporation is in the process of obtaining a permit, franchise, or
government contract. Once the process of obtaining the permit,
franchise, or government contract is completed, a corporation may make a
contribution from their PAC. At the municipal level, contributions to
local candidates are prohibited if the corporation is seeking a permit,
franchise, or contract with the local jurisdiction.
Summary of Changes UPDATE
Note Recent Changes to
by John Cozine, Esq.
MONTANA: The Montana
Supreme Court held the state law prohibiting independent political
expenditures by a corporation related to a candidate is constitutional.
Finding Citizens United v. FEC did not compel invalidating the
state’s 1912 Corrupt Practices Act, the majority opinion of the court
stated, “The corporate power that can be exerted with unlimited
political spending is still a vital interest to the people of Montana.”
The court concluded the state, because of its history and the history of
the act, has a compelling interest to impose statutory restrictions,
emphasizing the Citizens United decision allows restrictions to
be upheld if the government demonstrates a sufficiently strong interest.
U.S. Court of Appeals for the 9th Circuit invalidated a Washington
state law that prevented individuals from making contributions of
more than $5,000 to PACs supporting ballot measures during the three
weeks prior to an election. The blackout period on contributions was
challenged in a lawsuit filed by Family PAC, a political action
committee that was formed to oppose Washington’s domestic
partnership law. While Family PAC was successful on the merits in
challenging the blackout period, it was unsuccessful in its
challenge to laws requiring PACs to report the name and address of
anyone who contributes more than $25, and the occupation and
employer of those who make contributions in excess of $100.
Fair Political Practices Commission approved changes to the gift
regulations. The changes, which took effect on January 1, 2012,
include the ability for public officials to accept gifts from
lobbyists without disclosure if a dating relationship exists.
Additionally, officials will be able to accept tickets to sporting
events if the officials are attending the event to perform a
ceremonial duty. In such circumstances, the gifts are to be reported
by the agency and not the official.
federal judge ruled in favor of the Alabama Democratic Conference in
their challenge of the state prohibition on PAC-to-PAC transfers of
funds. The Alabama Democratic Conference alleged the law prohibited
their PAC from getting money from other PACs to use for voter
communication and voter turnout initiatives. Attorney General Luther
Strange has appealed the judge’s ruling. While the appeal is
pending, the attorney general is prohibited from enforcing the
PAC-to-PAC transfer law against the Alabama Democratic Conference.
United States Seventh Circuit Court of Appeals struck down and
permanently enjoined enforcement of a Wisconsin law setting limits
on contributions to groups that independently spent on political
speech. The appeal was brought by the political action committee of
Wisconsin Right to Life, which previously won a temporary injunction
against enforcement of the law during recall elections in 2011. The
court found that after Citizens United v. FEC, W.S. §11.26(4)
was unconstitutional to the extent it limited contributions to
committees engaged solely in independent spending for political
ASK THE EXPERTS
State and Federal
Communications’ Experts Answer Your Questions
Here is your chance to “Ask the Experts” at State and
Federal Communications, Inc. You can directly submit questions for this
feature, and we will select those most appropriate and answer them here.
Send your questions to:
(Of course, we have always been available to answer questions from
clients that are specific to your needs, and we encourage you to
continue to call or e-mail us with questions about your particular
company or organization. As always, we will confidentially and directly
provide answers or information you need.) Our replies to your questions
are not legal advice. Instead, these replies represent our analysis of
laws, rules, and regulations.
Can I change the method by which I am
calculating my lobbying expenditures for purposes of filing my
Federal LD-2 reports?
Yes, at the appropriate time. Under the LDA, registrants
have the option of electing the compilation method for quarterly
expenditures – that is, whether they use the LDA definitions or
the IRC definitions for lobbying. A change in that method
election can only take place, however, in the first quarter of
each new year. Once a report has been filed using one method
then all subsequent reports for that reporting year must employ
the same method. That being the case, this is a very good time
to consider whether it makes sense to change. There are
advantages and disadvantages to each method, and the decision to
change your method should be made after careful consideration.
Here are just a few important differences to keep in mind when
considering a new method election for 2012:
The IRC method allows an organization to employ only one
tracking system for both tax and LDA purposes;
The IRC method provides a greatly narrowed definition of
communications with executive branch officials;
Under the LDA method, neither grassroots nor state and
local lobbying expenditures are included.
If you think it may make sense to consider a change in
your calculating method, please let us know and we’d be happy to
assist in a more thorough analysis.
Wealth of Information at
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with your fellow government affairs and procurement colleagues? Then
jump into the State and Federal Communications, Inc. blog at
Once there, you
can join the exchange of ideas and view solutions to common challenges
and problems. Also, State and Federal Communications continually adds
content to the blog, including ‘hot topics,’ which are summaries of
important news items you need to know.
the conversation, and make use of this valuable information resource.
State and Federal
from Public Affairs Council Institute, Laguna, California
Introducing the PAC Institute Graduating
Class of 2012!
Elizabeth worked with Michael, Trish, and
Brian to coordinate bowling shirts for the class.
Marta Smith, Lockheed, showing her true colors
Elizabeth stops for a photo with Mark
Trish Wexler, VOX Global, and Brian Flaherty,
pose in their third year bowling shirts at PAC Institute.
Michael O'Connell, Nuclear Energy Council, and Brian
Flaherty, Nestle Water, meet up with Elizabeth at the PAC
Institute reception in California.
Elizabeth Bartz with long-time colleague,
Pat Hayes, Procter & Gamble.
See Us in Person
Plan to say hello at future
State and Federal Communications
will be attending and/or speaking regarding
January 30 - February 2, 2012
National Grassroots Conference
February 7, 2012
NCSL Foundation Bi-Annual Luncheon
February 17, 2012
Innovate to Motivate
February 25 - February 27, 2012
NGA Winter Meeting
February 27 - March 1, 2012
National PAC Conference
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