Q.  Can a PAC from one state make contributions to candidates and ballot measures in a different state?

A.  Yes, an out-of-state PAC may make contributions in a different state, but it must be aware of the state laws governing such a practice.

In most states, the out-of-state PAC will be subject to the same rules governing an in-state PAC, although there may be parameters.  For example:

• In North Carolina, the out-of-state PAC must have a certified assistant treasurer who is a resident of North Carolina.
• In New Jersey, the Election Law Enforcement Commission will determine if the out-of-state PAC has a significant percentage of activity within the state to require registration and reporting.
• In Nevada, the out-of-state PAC must appoint a registered agent from Nevada.
• In New York, out-of-state committees must designate a depository, which must be a banking organization authorized to do business in New York.

In other jurisdictions, an out-of-state PAC must create an in-state PAC before it can contribute.  For instance…Click here to read this and all Ask the Experts articles in full

We have not listed PAC rules for all the states, only examples of some states.
If you have a question on a state not listed here, please contact us directly
at 330-761-9960.

The 29^th Hawaii Legislature adjourned sine die on Thursday, May 4.

Prior to adjournment, House members elected Rep. Scott Saiki as Speaker of the House. He replaces Rep. Joseph Souki, who resigned after lawmakers failed to come together to pass certain bills.

Lawmakers passed 233 bills during the 2017 legislative session, including budgets for fiscal years 2018 and 2019.

Pending bills will carry over to the 2018 legislative session.

National:

Guns and Religion: How American conservatives grew closer to Putin’s Russia
Washington Post – Rosalind Helderman and Tom Hamburger | Published: 4/30/2017

A significant shift has been underway in recent years across the Republican right. On issues including gun rights, terrorism, and same-sex marriage, many leading advocates on the right who grew frustrated with their country’s leftward tilt under President Barack Obama have forged ties with well-connected Russians and come to see that country’s authoritarian leader, Vladimir Putin, as a potential ally. The attitude adjustment among many conservative activists helps explain one of the most curious aspects of the 2016 presidential race: a softening among many conservatives of their historically hardline views of Russia.

Federal:

Code Pink Protesters at Sessions Hearing Could Face Year in Prison
New York Times – Christopher Mele | Published: 5/3/2017

A jury convicted three Code Pink activists for disrupting Jeff Sessions’ confirmation hearing to be attorney general, including one who apparently laughed during the hearing. Desiree Fairooz, who dressed up as a pink version of Lady Liberty, was found guilty on charges of parading or demonstrating on Capitol grounds and disorderly conduct. Two other activists, Tighe Barry and Lenny Bianchi, were acquitted on a count of disorderly conduct but were convicted on two separate charges of parading or demonstrating during the hearing. Both men dressed up as Ku Klux Klan members, wearing white hooded robes, and stood up before the hearing started. All three could face up to a year in prison.

Lewandowski’s Firm Appears to Offer Trump Meetings
Politico – Kenneth Voogel and Josh Dawsey | Published: 4/28/2017

A firm co-founded by Donald Trump’s original campaign manager Corey Lewandowski appears to have been pitching clients around the world by offering not only policy and political advice, but also face time with President Trump, Vice President Mike Pence, and senior members of their administration. The previously unreported firm, Washington East West Political Strategies, was created by Lewandowski and fellow Trump campaign veteran Barry Bennett, as well as an Azerbaijani oil executive and an American political consultant who works extensively in Russia, to prospect for political business in Eastern Europe. And Lewandowski and Bennett have created different firms with other partners to prospect in the Middle East, Canada, and Central America, Bennett said.

Top Ethics Officer Challenges Trump Over Secret Waivers for Ex-Lobbyists
New York Times – Eric Lipton | Published: 5/1/2017

The Office of Government Ethics (OGE) sent a letter to the White House and all executive branch agency heads asking for copies of any waivers the Trump administration may have granted to appointees exempting them from ethics rules.  The OGE’s director, Walter Shaub, said the Obama administration similarly granted waivers, but the prior administration’s waivers were given “under a narrow set of circumstances” and were posted publicly on the OGE’s website. The New York Times has reported that in at least two instances, the Trump administration “secretly issued” waivers exempting officials from ethics rules.

Trump Transition Staffers Head to K Street Despite Lobbying Ban
Politico – Theodoric Meyer and Michael Stratford | Published: 5/3/2017

Donald Trump barred people who worked on his transition from lobbying for six months afterward, but at least nine people who worked on transition have registered as lobbyists. Many are registered to lobby the same agencies or on the same issues they worked on during the transition. Because of the way the six-month lobbying ban was worded, the former staffers may not be violating it. Regardless, their trips from lobbying to government service and back run counter to Trump’s campaign promise to close Washington’s “revolving door.” They also raise questions about how rigorously the White House will enforce a separate five-year lobbying ban that applies to those serving in the administration.

While in White House, Trumps Remained Selling Points for ‘Very Special’ Philippines Project
Washington Post – Drew Harwell and Matea Gold | Published: 5/2/2017

Four months into President Trump’s tenure, his business relationship with a developer who is one of the Philippines’ richest and most powerful men has emerged as a prime example of the collision between the private interests of a businessperson in the White House and his public responsibility to shape U.S. foreign policy. The potential conflict first came into focus shortly before Trump was elected, when the Philippines’ president, Rodrigo Duterte, named the Trump Organization’s partner on a Manila real estate venture as his top trade envoy. Although promotional videos for Trump Tower in the Philippines were posted online in 2013, the continued presence of the president and his daughter, Ivanka, in marketing materials for the reflects the extent to which they remain key selling points even as they have vowed to distance themselves from their global real estate and branding businesses.

From the States and Municipalities:

Colorado – Colorado Supreme Court Hears Dispute on Whether Legal Fees Count as Political Donations
Denver Post – Tom McGhee | Published: 5/2/2017

The Colorado Supreme Court heard arguments in a case that could decide whether free, or reduced-cost, legal services provided to political groups should be considered contributions under the state’s campaign finance law. In a case stemming from the 2012 University of Colorado Board of Regents race, the Court of Appeals ruled legal services must be treated like political contributions, which limit the amount a single donor can give. The high court has stayed that ruling to allow time for justices to hear the case.

Massachusetts – Regulator Sees ‘Evidence of Violations’ at Thornton Law Firm
Boston Globe – Andrea Estes | Published: 4/29/2017

State regulators are recommending that Massachusetts Attorney General Maura Healey open a criminal investigation of nine lawyers at Boston’s Thornton Law Firm as well as seven of their spouses, concluding the firm’s longtime practice of reimbursing lawyers for political contributions may have broken multiple laws. Michael Sullivan, director of the state Office of Campaign and Political Finance, said in a letter to Healey his office had concluded there is “evidence of violations” of campaign finance laws that require political contributions be made in the name of the actual donor. He said the firm as well as 16 individuals may have broken the law. Sullivan’s letter marked the first time that state officials sought criminal prosecution in a “straw donor” case.

Minnesota – Allegations Against Dai Thao Campaign Reveal Law’s Complexity
Minneapolis Star Tribune – Jessie Van Berkel and Eric Roper | Published: 5/2/2017

The Minnesota Bureau of Criminal Apprehension will investigate allegations of a failed bribery solicitation by St. Paul City Councilperson Dai Thao. Media reports indicated Thao, who is running for mayor, pressured a lobbyist for “resources” before a council vote and his campaign manager later texted the lobbyist to say a campaign donation might get him to “rethink this issue.” Lobbyist Sarah Clarke rejected the offer, citing state bribery statutes. Minnesota law prohibits a public officer or employee from requesting benefits or reward with the understanding that it will influence their power or duties. In the past five years, however, only one public official or employee was convicted under the law.

Missouri – Missouri Governor to Pay Fee for Using Nonprofit Donor List
U.S. News & World Report – David Lieb (Associated Press) | Published: 4/29/2017

Gov. Eric Greitens was fined $1,000 by the Missouri Ethics Commission for violating the state’s campaign finance law. Greitens failed to disclose last year that his campaign obtained a donor list from The Mission Continues, a nonprofit he founded in 2007. Federal law prohibits charities like The Mission Continues from intervening in political campaigns on behalf of candidates. The IRS has ruled charities cannot give donor lists to politicians but can rent them at fair market value if made available to all candidates. The ethics panel said Greitens’ campaign should have disclosed receiving the donor list as an in-kind contribution from his campaign manager, Daniel Laub.

New York – City Pays for Mets Moment, Guided by Firm with Troubled Ties to de Blasio
New York Times – J. David Goodman | Published: 4/30/2017

Several hundred city workers, tourists, and passers-by gathered near the steps of City Hall as Mayor Dill de Blasio again marked the New York Mets’ 1986 World Series victory. The event offered Dwight Gooden, the former Mets pitcher whose battles with drug addiction caused him to miss the original festivities, a chance to relive the moment. The city paid for the event, which had been conceived as a scene for a television series in development, produced by the sports radio host Amy Heart. So how did Ms. Heart get the city not only to pay for the backdrop of a scene in a television pilot but also have the mayor take part? By enlisting the influential lobbying firm of James Capalino, a friend and longtime donor to de Blasio whose business skyrocketed with the mayor’s election.

South Dakota – South Dakota Ethics Bill Lost Teeth on Its Way to Becoming Law
Sioux Falls Argus Leader – Dana Ferguson | Published: 4/27/2017

Four retired judges will be appointed in the coming months to the new government accountability board, forming the nearest thing to a state ethics board that South Dakota has had in nearly four decades. Once convened, the panel will exist as a place for South Dakotans to bring concerns about government fraud, conflicts-of-interest, and other potential wrongdoing. The compromise bill creating the board cleared the Legislature in the wake of protests over lawmakers’ repeal of a major ethics and campaign finance law approved by voters in November. Critics said the new accountability board is at best a tepid step in the right direction and at worst a symbolic move to give lawmakers cover from criticism following the repeal of Initiated Measure 22.

Tennessee – Jeremy Durham Dismisses Campaign Finance Audit, Points Finger in Fiery Letter
The Tennessean – Dave Boucher and Joel Ebert | Published: 5/3/2017

Former Tennessee Rep. Jeremy Durham offered justifications for his actions in response to 690 possible campaign law violations leveled by election ethics officials. While denying essentially any wrongdoing, the 235-page response presented to state election finance officials points the finger at legislators, overly broad state laws, and human error. The allegations against Durham range from using campaign funds to improperly buy sunglasses, suits, and spa products to inappropriately loaning thousands of dollars to his wife, a prominent fundraiser, and a professional gambler.

Texas – How the Federal Case Against John Wiley Price Fell Apart
Dallas News – Jennifer Emily, Gromer Jeffers Jr., and Kevin Krause | Published: 4/28/2017

Dallas County Commissioner John Wiley Price was found not guilty of bribery and six other counts by a federal jury that considered whether he was abusing his public office to collect about $1 million in secret profits over a decade. The jury deadlocked on four tax-related counts and the judge declared a mistrial on those charges. Price is likely the most well-known politician to ever be prosecuted by the federal government in Dallas. His confrontational style and focus on the issues of race and economic equality have made him a controversial figure, but his constituents have re-elected him for three decades. The acquittal is a surprising defeat for the U.S. Justice Department and FBI, who have spent a decade investigating and prosecuting Price.

Vermont – House Passes Ethics Commission Bill with Some Reluctance
VTDigger.org – Mark Johnson | Published: 5/2/2017

The Vermont House passed a bill creating a state ethics commission, overcoming objections about a requirement that lawmakers disclose their spouses’ sources of income. The legislation also prevents lawmakers from becoming lobbyists within a year of leaving their seats, and restricts holders of no-bid state contracts of $50,000 or more from making campaign contributions to certain candidates. A conference committee will have to iron out the differences between the House and Senate versions before the legislation goes to Gov. Phil Scott.

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.

The Montana Legislature adjourned the 2017 regular session April 28, 2017.  House Bill 340, eliminating the Office of the Commissioner of Political Practices, made it through the House but was tabled in the Senate and did not pass.

Senate Bill 368, increasing contribution limits for both individuals and political action committees and placing the Office of the Commissioner of Political Practices under the jurisdiction of the state Attorney General, passed at the last minute and will be sent to the Governor.

The Montana Legislature will pick up again in January 2019.

Kayleigh Crumb has been an excellent choice as the first student to receive the recently endowed ‘Elizabeth Z. Bartz Scholarship for Howland Tigers.’ This scholarship is given to a graduate of Howland High School who is entering Kent State University at Trumbull Campus as a freshman.

Kayleigh received the 2016 scholarship award last fall, after graduating from high school, and enrolling at the KSU Trumbull campus. After her first semester at the university, she was named to the Dean’s List by achieving a 4.0 grade-point average. She also received a KSU Trumbull Freshman Scholarship for her efforts.

Elizabeth Z. Bartz, who provided $30,000 to Kent State University at Trumbull to endow the ongoing scholarship program, said, “I am delighted that Kayleigh was the first student from Howland High School to receive this scholarship. She has already done so well and has a bright future ahead of her. I endowed this scholarship last year in honor of my 40-year graduation anniversary from Howland High School because I wanted to give back and help graduating seniors from Howland High School attend the local area KSU Trumbull Campus, just like I did. Meeting Kayleigh has showed me I made the right decision to help promising students pay their early college costs.”

Kayleigh added, “I want to be a news anchor or work in the broadcasting field with my journalism major. Even while at Howland High School, I was able to take classes offered by Kent State and was able to obtain nine college course credits. This scholarship, generously provided by Ms. Bartz, helped me a lot so I could attend Kent State University at Trumbull, where I am getting the same education as the main campus in an affordable, safe and convenient location.”

Starting in the fall of 2017, Kayleigh will attend the main campus of Kent State University in Kent, Ohio, for her second year of classes. She is also being inducted into the National Society of Leadership and Success later this month, the nation’s largest leadership honor society.

For upcoming seniors at Howland High School who will graduate and then attend Kent State University at Trumbull this Fall, they can learn more about the ‘Elizabeth Z. Bartz Scholarship for Howland Tigers’ and apply starting May 1, 2017, at this KSU website: http://www.kent.edu/trumbull/campus-scholarships

Elizabeth, who graduated from Kent State University having earned a Bachelor of Arts Degree in Journalism in 1980 and a Master of Arts Degree in Political Science in 1982, credits the KSU Trumbull Campus and its professors as the place and people who supported her at the beginning of her university journey. Her endowment now ensures a scholarship is awarded each year to a Howland High School graduate, in a program managed by KSU.

We’ve got a busy month of May planned. If you are attending any of these events, please say hello!

May 1   Book Forum – The Soul of the First Amendment, Washington, DC

May 2   Ohio Chamber of Commerce Annual Meeting and Reception, Columbus, Ohio

May 3   Free Website Tour of State and Federal Communications Online Publications

May 4   Leadership in the 21st Century Program Alumni Event, Washington, DC

May 4   Public Affairs Council Cinco de Mayo Happy Hour, Washington, DC

May 9   WGR Toastmasters, Washington, DC

May 11   Montgomery County Council – African Affairs Advisory Group Meeting, Silver Spring, Maryland

May 12   Advocacy Leaders Network: Advocacy on the Cheap: Changing the World on Any Budget, Washington, DC

May 18   17th Annual Omnikal Business Summit, New York, NY

May 23   WGR Toastmasters, Washington, DC

May 24   2017 Advocacy Leaders Network Spring Happy Hour, Washington, DC

The Alaska Legislature will remain in session despite its April 17 deadline, with lawmakers still working to pass a budget bill and other deficit reduction measures.

A voter initiative passed in 2006 limits the legislative session to 90 days, but legislators often continue after the deadline and follow the constitutional deadline of 121 days.

If more time is needed after the constitutional deadline, a special session would need to be convened.

Gov. Jim Justice signed a proclamation to extend the legislative session by one day to an adjournment date of April 9. The extension is required by the constitution since the Legislature has not yet passed a budget bill.

More time may be needed for lawmakers to pass a budget as there is little agreement among lawmakers on how to address West Virginia’s $500 million shortfall in the 2018 fiscal year budget.

Both the House and Senate advanced budget bills on Wednesday, April 5; however, Justice indicated he plans to veto either plan that reaches his desk.

We’ve got a busy April planned. If you are attending any of these events, please say hello!

April 7   PACS, Politics, & Grassroots Conference, Washington, DC

April 11   WGR Toastmasters, Washington, DC

April 11  WGR Leadership Program Final Session, Washington, DC

April 13   Montgomery County Council – African American Affairs Advisory Group Meeting, Silver Spring, Maryland

April 21   You-Too Social Media Conference, Kent, Ohio

April 25-26   Public Affairs Council Spring Executive Meeting, Washington, DC

April 25   Public Affairs Council Annual Member Dinner, Washington, DC

April 25   WGR Toastmasters, Washington, DC

April 26-27   Campaign Tech East Conference 2017, Washington, DC

Federal Regulation of Lobbying Act

One of the first formal federal regulations of lobbying in the United States was the Federal Regulation of Lobbying Act that created a registration and financial disclosure system for lobbyists in 1946. The Federal Regulation of Lobbying Act required lobbyists, anyone whose “principal purpose” was influencing the passage or defeat of a piece of legislation, to register with the Clerk of the House and Secretary of the Senate. The act also required quarterly financial reports to be filed as well. The act was considered ineffective because of poor drafting.

The act was diminished in 1954 when it was challenged in the U.S. Supreme Court case United States v. Harriss. The Court’s ruling narrowed the Act to only apply to “paid lobbyists” that “directly communicate” with Congress on “pending legislation.”

The United States v. Harriss ruling discounted the power and need for disclosure of those who lobby on general issues rather than a specific piece of legislation by not requiring them to disclose their efforts. The Supreme Court ruling also only required disclosure of in person meetings.

Lobbying Disclosure Act of 1995

Another effort was made to regulate lobbying with the Lobbying Disclosure Act of 1995, following a scandal surrounding legislators lobbied by the Wendtel Corporation. The company failed to disclose its lobbying efforts and was bribing policy makers to win government contracts. This scandal motivated Congress to repeal the 1946 act, that had been basically untouched since its dismantling in the Supreme Court and original poor drafting.

In an attempt to make compliance of the law clearer, the new statute redefined lobbying and other related terms.  A lobbyist was now considered anyone who is paid by another to make ‘‘lobbying contacts,’’ other than an individual whose ‘‘lobbying activities’’ constitute less than twenty percent of the time spent on providing services to a particular client over a six-month period. If a paid representative of an organization spent less than $22,500 on lobbying within the six months of the reporting period, then the employee did not need to register as a lobbyist under the Lobbying Disclosure Act. This new, more intense regulation required a lobbyist to register with the Secretary of the Senate and the Clerk of the House of Representatives within 45 days of their first lobbying contact on behalf of an organization. The 1995 lobbying regulation was much more stringent and clear than the 1946 act that had left a lot of loopholes.

Honest Leadership and Open Government Act of 2007

The Lobbying Disclosure Act was modified by the Honest Leadership and Open Government Act on September 14, 2007. This act furthered public disclosure requirements for lobbyists and placed more restrictions on the gifts members of Congress and staff members could accept. This law also extended the revolving door period for senior staffers of a member from lobbying them for two years. The 1995 act had a one-year restriction.

Sources:

http://www.opensecrets.org/resources/learn/lobbying_timeline.php

https://definitions.uslegal.com/f/federal-regulation-of-lobbying-act-of-1946/

https://ballotpedia.org/Lobbying_Disclosure_Act_of_1995

https://www.govtrack.us/congress/bills/110/s1/summary

https://www.govtrack.us/congress/bills/110/s1/summary#libraryofcongress

Washington D.C.-based Gabrielle Woodard is a student from Kent State University (KSU). She is writing articles looking at the history of lobbying and political contribution, the emergence of the compliance laws and regulations governing these activities, and other interesting topics. Look for these articles to appear every few weeks. We look forward to her research and insightful writing.

Gabrielle is a senior public relations major at KSU with a minor in political science. She served as president of Kent State’s chapter of the Public Relations Student Society of America during 2015-2016. Gabrielle spent the spring of 2015 participating in the Washington Program in National Issues and interned in the Office of Legislative Affairs within the Federal Communications Commission. She then spent her last two summers in Baltimore as a communications intern for Northrop Grumman, an international defense contractor. Gabrielle is spending this semester in Washington, D.C. and pursuing a career in government relations.

Gov. Matt Bevin approved changes to a campaign finance law yesterday, March 27, 2017.

Senate Bill 75 doubles current contribution limits for individuals giving to candidates, state executive committees, and caucus campaign committees. The limit for individuals giving to PACs also increases from $1,500 to $2,000.

Contributions to candidates and PACs will be indexed for inflation every odd-numbered year based on the Consumer Price Index. The bill also creates a single reporting threshold of $3,000 for campaign finance reports.

The bill is effective June 28, 2017, or 90 days from adjournment sine die of the regular session of the Legislature.

On March 27, South Dakota lawmakers met for the final day of the 2017 legislative session to consider five bills Gov. Dennis Daugaard vetoed.

Two-thirds support is required to overturn a gubernatorial veto and lawmakers failed to raise enough support to override any of the vetoes up for consideration.

The next legislative session is set to convene January 9, 2018.

Lobbying

“Would-Be Trump Appointees Say ‘No Thanks’ Due to Lobbying Ban” by Ben Brody, Shannon Pettypiece, and Bill Allison for Bloomberg.com

Oregon: “Gov. Brown Reverses Course, Says Former Lawmaker Will Not Lobby Legislators” by Saul Hubbard for The Register-Guard

Campaign Finance

“FEC Earning Congressional Attention – for the Wrong Reasons” by Dave Levinthal for Center for Public Integrity

Ethics

Florida: “Corrupt Opa-locka Official Was a Prized Witness. He Was Rewarded with No Prison Time.” by Jay Weaver for Miami Herald

New Mexico: “Senate Yanks Real Estate Bill; Lawmaker Says Pay-to-Play Maneuver Exposed” by Andrew Oxford (Santa Fe New Mexican) for New Mexico Political Report

New York: “Preet Bharara Shunned Politics. His End Was Tinged by Them.” by Benjamin Weiser, Ben Protess, Matthew Goldstein, and William Rashbaum for New York Times

Utah: “Shurtleff Sues State for at Least $1.1M, Alleges Utah A.G. Sean Reyes Interfered in His Case” by Jennifer Dobner for Salt Lake Tribune

Elections

California: “Seeing Red: Membership triples for the Democratic Socialists of America” by Matt Pearce for Los Angeles Times

Legislative Issues

Minnesota: “Lawmakers Clash Over Ethics of Real ID Letter to the Editor” by Don Davis (Forum News Service) for St. Paul Pioneer Press

Redistricting

Texas: “Texas Congressional Maps Are Struck Down for Discrimination” by Manny Fernandez for New York Times

Lobbying

California: “California Lawmakers Report Accepting $518,000 in Gifts, Including Travel and Expensive Meals” by Patrick McGreevy, Melanie Mason, and Chris Megerian for Los Angeles Times

Campaign Finance

Massachusetts: “Boston Law Firm Could Be Charged on Donations” by Andea Estes and Viveca Novak for Boston Globe

Washington: “Ferguson Delivers the Laundry Bill: Grocery Manufacturers told to pay $1.1 million” by Joel Connoly for Seattle Post-Intelligencer

Ethics

“New EPA Head Told Congress He Never Used Personal Email for Government Business. But It Turns Out He Did.” by Steven Mufson for Washington Post

“Majority Rule Means the Power to Stop, Not Just Start, an Investigation” by Carl Hulse for New York Times

“Kushner and Flynn Met with Russian Envoy in December, White House Says” by Michael Schmidt, Matthew Rosenberg, and Matt Apuzzo for New York Times

Arkansas: “Ex-Arkansas Senator Indicted by U.S.; 2 Others Accused in Kickbacks Case” by Doug Thompson for Arkansas Online

North Carolina: “Court Ruling Throws Status of Ethics, Elections Panels into Doubt” by Laura Leslie and Mark Binker for WRAL

Utah: “Jury Acquits John Swallow of All Charges” by Dennis Romboy and McKenzie Romero for Deseret News