On November 4, 2015, voters in Maine approved a ballot initiative expanding the state’s public campaign financing system.  The initiative increases both election transparency and the total pool of money available to qualifying candidates. Organizations behind political advertisements must now disclose their top three donors and will face increased penalties for campaign finance law violations.

The new requirements will be effective 30 days after the Governor proclaims the official results of the election.

State and Federal Communications, Inc. announces Jennifer Jaketic as a new compliance assistant.

She assists in the company’s Corporate Contribution Compliance department, also known as C³, which monitors the rules associated with corporations making political contributions.

“I like obliging by the rules and the ethical considerations of campaign finance,” Jaketic added. ”I enjoy working with numbers and the compliance aspect of it, which is why my position at State and Federal is such a valuable experience.”

“We started vetting contributions for our clients in 2008 and it is a piece of business which has grown. Nola Werren, Esq. from our staff has the experience needed with Jennifer to keep the work in progress for our clients,” said President and CEO Elizabeth Bartz.

Jaketic has more than 12 years of experience in campaign finance. Immediately following graduation from George Washington University with a bachelor’s in political science, Jaketic worked for the Federal Election Commission in its Reports and Analysis division, where she reviewed campaign finance reports of Political Action Committees. Jaketic is currently pursuing a master’s degree in accounting at Cleveland State University.

Proposition C, a measure requiring registration fees and monthly reports from expenditure lobbyists, was approved by voters in San Francisco. The measure creates a new category of lobbyists, termed expenditure lobbyists, defined as organizations who employ lobbyists to influence city officials.

The measure imposes a registration threshold of $2,500 or more in a calendar month spent soliciting, requesting, or urging other persons to communicate directly with a city official. Expenditure lobbyists must pay a $500 fee to register with the city.

The measure takes effect February 1, 2016.

Initiative 122, a ballot measure proposing to raise property taxes in Seattle to create a publicly financed elections program, has passed. The “Honest Elections Seattle” measure imposes a $30 million tax levy over a 10 year period, granting citizens four $25 “democracy vouchers” to use towards the campaigns of city candidates.

Initiative 122 also bans contributions from corporations with medium-sized and large city contracts as well as corporations who lobby city officials. Contribution limits are lowered under the measure, from $700 per election cycle to $500.

The initiative becomes effective upon enactment by the city council.

Gov. Nathan Deal has set a special election for December 1, 2015 to fill a vacancy in the state senate. Sen. Ross Tolleson resigned his District 20 seat late last week, citing health issues. Six candidates, all Republicans, have already announced their intentions to run for the position.

If necessary, a runoff election will be held on December 29, 2015.

Q. Are there any rules that pertain to making contributions in the weeks leading up to an election?

A. With local elections in 2015 and the upcoming 2016 elections, it is wise to know what the rules are when making contributions in the days and weeks leading up to an election.  Usually, there is a monetary threshold that must be exceeded, and typically there is a short turnaround time to disclose the contribution, usually within 24 hours. In some instances, there is an outright ban on contributions.

In California, contributions of $1,000 or more per candidate made by a major donor during the 90-day period before an election must be disclosed within 24 hours of making the contribution.  Contributions to ballot measure committees and political party committees are also included within this reporting requirement.  The candidate and the ballot measure committee must be on the ballot at the election for which the 90-day period applies.  California’s 90-day pre-election period is the longest in the country.  If numerous special elections are being held, the 90-day periods may overlap.

In Washington, a contribution of $1,000 or more per candidate made by a registered lobbyist during the 21 days before an election must be disclosed within 24 hours of making the contribution.  This includes contributions to candidates and ballot measures appearing on the ballot at the election for which the 21-day period applies, as well as contributions to political party committees and PACs.  The Washington Public Disclosure Commission has a link on its home page that allows for the electronic filing of this report.

In Florida, opposed candidates must return contributions received less than five days prior to an election.

In Tennessee, a PAC is prohibited from making a contribution to a candidate for state office after the 10th day before an election until the day of the election.

These are just a few examples.  As we always advise, verify the rules in your state before making political contributions.

You can directly submit questions for this feature, and we will select those most appropriate and answer them here. Send your questions to: experts@stateandfed.com.

(We are always 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.

On October 30, 2015, the Arizona Legislature adjourned its special session after lawmakers agreed on educational funding for the state. Gov. Doug Ducey immediately signed the legislation into law, which also creates a special election on May 17, 2016, to enact constitutional changes required by the funding reforms. “Educators will finally have the resources they have been asking for, and our students will have greater opportunities to succeed,” Ducey said in a press release.

The European Commission (EC) in Brussels has recently announced its intention to implement a US-style reform to force lawyers who lobby to register their clients.

The Council of Bars and Law Societies of Europe (CCBE) has argued this new requirement is a violation of the confidentiality rules of the European Bar Association. The CCBE believes the reform would also violate national bar requirements of the European Union (EU) member states.

Brussels is considered the hub of European policymaking and home to EC headquarters. Lobbying efforts are directed towards the EC to influence legislation. Lobbyists who wish to meet with EC commissioners, cabinet members, and directors-general must register and disclose clients in the Transparency Register.

Federal:

Conservative PACs Turn Attack on G.O.P. Leaders into Fund-Raising Tool
New York Times – Eric Lipton and Jennifer Steinhauer | Published: 10/23/2015

Petitions to oust Republican leaders in Congress that started surfacing online over a year ago did not come from Democrats. They came from conservative websites and bloggers who have helped stoke a grassroots rebellion to make Congress more conservative, a continuation of the tea party movement. But these politically charged appeals to conservatives around the country were often accompanied by a solicitation for money, and the ultimate beneficiaries, records suggest, are the consultants who created the campaigns rather than the causes they are promoting.

Dennis Hastert, Ex-Speaker of House, Pleads Guilty
New York Times – Monica Davey and Mitch Smith | Published: 10/28/2015

Former U.S. House Speaker J. Dennis Hastert pleaded guilty to bank fraud charges connected to $1.7 million he paid to cover up what federal officials said was sexual misconduct dating back to his years as a high school teacher and coach. He pleaded guilty to one count of “structuring” – taking money out of the bank in amounts below $10,000 to evade reporting rules on large cash movements. When the FBI questioned Hastert on why he withdrew the money, he told agents he did not feel safe with the banking system. The plea allows Hastert to avoid an in-court airing of his past. Prosecutors are recommending up to a six-month prison sentence.

DNC Courts Lobbyist Cash with Promise of VIP Access at Convention
The Hill – Megan Wilson | Published: 10/22/2015

Leaders from the Democratic National Committee (DNC) met with dozens of lobbyists to unveil plans for next year’s nominating convention in Philadelphia and kick off a bout of fundraising for the event. The national convention, still eight months away, will be an expensive party to throw, with early estimates putting the price tag at $85 million. Documents obtained by The Hill show the DNC handed out a menu of reward offerings in exchange for donations and bundled cash. Individuals are able to give a maximum of $100,200 to the DNC’s convention fund per year, but are encouraged to bundle together many times that figure.

FEC Overhauls Website to Make It Easier to Track Campaign Money
USA Today – Fredreka Schouten | Published: 10/27/2015

The FEC is set to unveil a $2.5 million overhaul of the agency’s website that will make it easier for average citizens to follow the money themselves. Among the many changes is that the new version can be viewed on any size screen, allowing users to view campaign finance data on their mobile phones and tablets. The commission’s disclosure database contains more than 14 billion data elements, and FEC Chairperson Ann Ravel said she finds the current site so hard to navigate that she usually just asks a staffer to find the information she wants. She said the new site will be more intuitive.

Investing in Lobbying Pays Off
New York World – Masako Melissa Hirsch | Published: 10/28/2015

Motif Investing created an investment option for its clients consisting of the 20 companies that spend a larger share of their assets on lobbying than other firms. The Kings of K Street stock portfolio has outperformed the Standards & Poor’s 500 by a factor of two for the past two years, according to Motif. In each of the past seven years, businesses, advocacy groups, and others spent more than $3 billion on lobbying the federal government. Billions more were spent at the state and local levels. Some research has pointed to the benefits of lobbying. Studies have found companies that lobby have lower tax rates, for example.

Paul Ryan Is Elected House Speaker, Hoping to Manage Chaos
New York Times – Jennifer Steinhauer | Published: 10/29/2015

Lawmakers elected U.S. Rep. Paul Ryan as the speaker of the House, putting an end to weeks of uncertainty over who would lead the raucous GOP conference after John Boehner’s surprise resignation. Ryan’s election gives House Republicans a chance to hit the reset button. Throughout Boehner’s nearly five years as speaker, centrist members and tea party conservatives were at war with each other over policy and tactics. The test for Ryan will be whether he can manage, perhaps even blunt, the hardline wing of the Republican conference, or if he too will fall to its members’ intransigence. He had warned members that while he would take their concerns about process seriously, he would not brook dissent that would undermine his ability to lead them.

From the States and Municipalities:

California – Former SF Police Union President Fined for Illegally Lobbying Last Year
San Francisco Examiner – Jonah Owen Lamb | Published: 10/27/2015

Gary Delagnes, formerly the San Francisco Police Association’s head and sometime spokesperson, was fined $5,500 for not registering as a lobbyist and failing to file disclosure reports required in connection with an effort to defeat a resolution on police brutality last December. At the time he was a paid political consultant for the union. City law defines a lobbyist as anyone who makes one or more contacts with elected officials on behalf of their employer. Delagnes says he never registered because he did not think his actions qualified as lobbying. He simply emailed several supervisors about the issue.

Kansas – Kansas Legislation Is Most Anonymous in Nation
Topeka Capital-Journal – Celia Llopis-Jepson | Published: 10/26/2015

More than 90 percent of bills in Kansas’ 2015 legislative session did not bear the names of lawmakers involved in writing or introducing them. Over several decades, the state’s lawmaking system has evolved into one in which legislators introduce hundreds of bills yearly —but only put their names on a small number for which they want to take credit. Public efforts to explore the origin of bills face obstacles: lawmakers file proposals for each other, written meeting minutes are not user friendly, and legislators themselves say some are engaging in a cat-and-mouse game to conceal involvement in controversial bills.

Louisiana – Louisiana Primary’s Ugly Race
Bloomberg.com – Ben Kamisar | Published: 10/29/2015

In a race that made a late but convincing case for the enduring entertainment value of Louisiana politics, U.S. Sen. David Vitter barely squeaked out a second-place finish in the primary election for governor to make a runoff against John Bel Edwards, a Democratic state representative. For months, Vitter was seen as the front-runner, but over the summer his lead steadily disintegrated.  Vitter’s opponents spent significant time and money rehashing Vitter’s 2007 prostitution scandal, including a claim by a local blogger that Vitter had fathered a child with a prostitute. A private investigator conducting opposition research for the Vitter campaign was arrested near New Orleans recently.

New Mexico – Dianna Duran Resigns, Pleads Guilty to Two Felonies
NewMexicoPolitics.net – Heath Haussamen | Published: 10/23/2015

New Mexico Secretary of State Dianna Duran, who was charged with multiple counts of public corruption, pleaded guilty to four misdemeanors and two low-level felonies in a plea deal that will likely spare her jail time and allow her to keep her pension. The agreement came just hours after she submitted her resignation. Duran was facing 65 criminal charges including embezzlement, money laundering, and fraud stemming from allegations she illegally transferred about $13,000 in campaign funds to her personal account. Prosecutors said Duran altered her campaign finance reports she filed with her own office to cover up the transfers that were part of an elaborate scheme to support a gambling habit.

New York – Albany’s Museum of Political Corruption No Longer Just a Funny Idea
Albany Business Review – Michael DeMasi | Published: 10/28/2015

Bruce Roter, a music professor at the College of St. Rose, wants to open a Museum of Political Corruption in Albany. The museum would be a place to explore, understand, and poke some fun at the fact New York’s past and present are filled with tales of politicians-gone-bad. New chapters in that long history are being written seemingly every day. The New York Board of Regents granted the museum a five-year provisional charter and it now has an eight-member board of trustees. “It’s funny, but it’s serious at the same time,” Roter said. “… If this can make the whole subject less complicated, if people feel empowered they can do something or have a say about the governance in our state, then I think they are doing a tremendous service to our community.”

New York – Oracle Sued by N.Y. Pension over Political-Giving Disclosure
Bloomberg.com – Freeman Klopott | Published: 10/28/2015

Oracle was sued by a New York pension fund over allegations the company is withholding information about its political donations. State Comptroller Thomas DiNapoli has been using his position as the sole trustee of New York’s $184.5 billion pension fund to press corporations to make their donations public after the Supreme Court’s 2010 ruling in Citizens United allowed companies to make political gifts without limitations. The fund owns about 10 million shares of Oracle. DiNapoli said the company did not live up to a 2007 agreement with the Sheet Metal Workers’ National Pension Fund to provide an annual report disclosing policies for political contributions. The company also did not respond to specific requests from the fund for those records, according to the lawsuit.

State and Federal Communications produces a weekly summary of national news, offering more than 60 articles per week focused on ethics, lobbying, and campaign finance.

Rep. Paul Ryan has been elected as the new Speaker of the House. The seat was left vacant after John Boehner’s resignation.

The vote took place this morning on the Hill, where Ryan needed 218 votes to win the majority. He received 236 votes, while Rep. Nancy Pelosi received 184 and Rep. Daniel Webster received 9. Three votes for unofficial candidates were cast, including Rep. John Lewis, Rep. Jim Cooper, and former Secretary of State Colin Powell.

In his speech, Ryan acknowledged the vast difference between Republicans and Democrats, but encouraged unity to fight problems head on. He also reminded Congress they work for the American people.

Ryan is the 62nd Speaker of the House.

On October 28, 2015, Arizona Gov. Doug Ducey called a special session of the Legislature to meet on the same day at 8 p.m. In anticipation of the session, lawmakers had met to create bills dealing with education funding in the state and to authorize a special election for the May 2016 consolidated election date. Once the bills were ready, Ducey issued the proclamation for a special session and tweeted a picture of the proclamation on his twitter account.

Photo of the Arizona State Capitol by Jeff Dean on Wikimedia Commons.

AKRON­, Ohio— Project GRAD Akron honored Elizabeth Z. Bartz and State and Federal Communications, Inc., with 2015 Community Service Awards at the Ninth Annual Achieving Dreams Celebration on Oct. 1.  The award honors those who have shown exceptional service in the community and a commitment to Project GRAD. Also receiving the award was Judi Hill, retired educator and administrator from the Akron Public Schools.

Dr. Beverly Warren, president of Kent State University, and Honorary Chairperson for the event presented the awards. Bartz has served on the Achieving Dreams Steering Committees and chaired the Silent Auction Committee. The staff of State and Federal Communications also donated their time with administrative, technical and communications support for Project GRAD.

Project GRAD Akron is a non-profit organization that provides educational programming and support for students in Akron Public Schools. Proceeds raised from the Achieving Dreams Celebration are used to support Project GRAD Akron’s programs, services, and scholarship fund.

On October 29, the Federal Election Commission (FEC) will make public a new version of the FEC website. The beta version being unveiled will be a functioning prototype in its first stage of development, according to an FEC press release. The FEC will be asking for public feedback on the new website, which will also include new search functions and improved access to legal materials. A link to the beta version will be available on the Commission’s existing website.

Dianna Duran resigned as New Mexico’s Secretary of State late Thursday evening, the day before she was due to appear in court on embezzlement and other charges. Duran previously pleaded not guilty to allegations she funneled campaign funds into personal accounts and later used those funds at area casinos.

Her guilty plea, entered this morning, can be withdrawn if the judge decides to impose a prison sentence. The plea agreement requires Duran to pay $14,000 in restitution to campaign donors and to undergo treatment for gambling addiction.

A spokesman for the governor’s office stated Deputy Secretary of State Mary Quintana will serve as acting secretary of state until the governor can make an appointment.