Legislation aimed at reforming U.S. campaign finance, lobbying, and ethic laws has passed in the U.S. House of Representatives. H.R. 1, For the People Act 2021, is a sweeping 791-page bill. The proposed new law, which passed the House on March 3, now heads to the U.S. Senate.

Among the changes in the bill, H.R. 1 restructures the Federal Election Commission and amends federal conflict of interest and lobbying laws. Introduced by Rep. John Sarbanes, the bill requires enhanced disclosure of donors making political contributions, creates a multiple matching system for small donations for political campaigns, and amends rules governing super PACs.

If passed, the bill also requires presidential candidates to disclose their tax returns, prohibits partisan gerrymandering, increases oversight over election vendors, creates an automatic voter registration across the country, and changes registration requirements for lobbyists and foreign agents.

One of the federal lobbying registration thresholds for organizations employing in-house lobbyists has been increased. Now, an organization employing in-house lobbyists whose total expenses in connection with lobbying activities do not exceed and are not expected to exceed $14,000 in the quarterly period is not required to be registered. The previous level was $13,000. This threshold amount is adjusted every four years based on the Consumer Price Index.

The threshold amount for lobbying firms remains the same. A lobbying firm or individual lobbyist whose total income for matters relating to lobbying activities on behalf of a particular client does not exceed or is not expected to exceed $3,000 in the quarterly period is exempt from registration with respect to such client.

Other determinations for registration include whether a lobbyist is an individual who, with respect to a particular client, makes more than one lobbying contact and whose lobbying activities constitute at least 20% of the individual’s time in services for that client over any three-month period.

On February 25, a bill was introduced in the Legislative Assembly of Ontario to increase the province’s contribution limits and make other changes to its election laws.

Bill 254, Protecting Ontario Elections Act, 2021, as introduced by Attorney General Doug Downey, proposes to amend the Election Act, the Election Finances Act, the Members’ Integrity Act, 1994, and the Municipal Elections Act, 1996.

Some of the changes in the bill include increasing contribution limits made to individual registered parties, party and non-party candidates, leadership candidates, constituency associations and nomination contestants of any one party or to the constituency association of any independent member. That amount increases from $1,650 to $3,300 per calendar year, with an increase of $25 for each calendar beginning on January 1, 2022.

Additionally, when selling a ticket for a fund-raising event, all, or any portion of its cost up to a maximum of $30, may be considered not to be a political contribution.

The time period on limiting third party advertisers’ spending would increase from six months to 12 months before an election. The proposed legislation also includes penalties for violations, allows members of the Assembly to endorse constituency associations, establishes the allowance of certain candidate electronic filings for municipalities, directs the Chief Electoral Officer (CEO) to establish an advisory committee on voting equipment and vote counting equipment, and expands powers of the CEO with respect to designating advance polls.

The bill also allows members of the Assembly to explicitly use social media for any matters a member wishes to bring to the attention of the public, including partisan matters.

On February 25, the Federal Election Commission (FEC) approved an advisory opinion allowing certain PACs to use aggregated data collected from the PAC’s contributors to advance the PAC’s political interests.

Advisory Opinion 2021-02 holds an independent expenditure-only PAC may inform a member of Congress or congressional candidate of the number of its contributors who live in the relevant state or district and the collective dollar amount that they give to the PAC. The request for the opinion was made by FEN-PAC, an independent expenditure-only political committee engaging lawmakers and candidates to advocate on certain legislative and policy issues. FEN-PAC, in its request, said it would not disclose any contributor’s contact information, nor would FEN-PAC or any third parties use any individual contributor information to solicit contributions or to sell other products or services.

The FEC held such use of aggregate data does not violate the Federal Election Campaign Act or any FEC regulations because it is not being sold or used for either soliciting contributions or commercial purposes.

The FEC specifically did not address any other federal laws or regulations could be affected by the PAC’s use of the aggregated data.

On February 3, U.S. Senators Jon Tester and Ron Wyden reintroduced a bill to reverse a U.S. Treasury Department’s decision limiting IRS disclosure requirement of certain tax-exempt organizations engaging in political activities.

Senate Bill 215, the Spotlight Act, requires non-profit organizations engaging in political activity, such as donating to candidates and purchasing political ads, provide the IRS with the names and basic information of donors who contribute more than $5,000.

The bill repeals an IRS revenue procedure exempting certain tax-exempt organizations that are not 501(c)(3) organizations from the requirement to report the names and addresses of substantial contributors (persons who contribute more than $5,000 per year) on information returns that are filed with the IRS. The proposed legislation requires tax-exempt organizations falling under sections 501(c)(4), 501(c)(5), and 501(c)(6) of the Internal Revenue Code (e.g., social welfare organizations, labor organizations, business leagues) to disclose the names and addresses of all substantial contributors on their returns. The bill also eliminates the authority of the IRS to provide exceptions to the disclosure requirements for tax-exempt organizations.

A version of the Spotlight Act was first introduced by the Senators in 2018

Today, the Federal Election Commission (FEC) published its price index adjustments for expenditure limitations and the federal lobbyist bundling disclosure threshold.

The lobbyist bundling disclosure threshold has increased for 2021 from $19,000 to $19,300. This threshold amount is adjusted annually. Federal law requires authorized committees of federal candidates, leadership political action committees (PACs), and political party committees to disclose contributions bundled by lobbyists and lobbyists’ PACs.

Additionally, the FEC published its adjusted Coordinated Party Expenditure Limits for political parties for 2021.

Today, the Federal Election Commission (FEC) published the 2021-2021 election cycle contribution limits, which have been indexed for inflation.

As required by the Bipartisan Campaign Reform Act of 2002, the FEC must adjust certain contribution limits every two years. The individual and nonmulticandidate PAC contribution limit to federal candidates has increased from $2,800 to $2,900. This is applied to both primary and general elections, allowing for a total of $5,800 for a federal candidate.

The limits on contributions by individuals to national party committees has increased from $35,500 to $36,500 per calendar year. Therefore, individuals may now contribute $109,500 per calendar year to committees of a national political party for presidential nominating conventions, to committees of a national political party for preparation for and the conduct of election recounts and contests and other legal proceedings, and to committees of a national political party for the construction, purchase, renovation, operation, and furnishing of one or more buildings for party headquarters.

On February 13, voters in the Canadian province of Newfoundland and Labrador will go to the polls to vote for candidates for the House of Assembly. The original fixed election date was October 10, 2023.

However, because Premier Andrew Furey was sworn in August 19, 2020, an election then became required to be held within one year of the swearing-in. Furey replaces former Premier Dwight Ball, who resigned in 2020 after questions arose about various government-awarded contracts.

This is the first time in the province elections have been held on a Saturday.

On January 20, President Joseph R. Biden signed an Executive Order mandating enhanced ethics rules for executive branch appointees. “Executive Order on Ethic Commitments by Executive Branch Personnel” requires new appointees sign and be contractually committed to the ethics pledge outlined in the order.

Appointees are prohibited from accepting gifts, with limited exceptions, from registered lobbyists and lobbying organizations for the duration of their service as appointees.

Appointees are also prohibited from participating in matters involving specific parties directly and substantially related to a former employer for two years after the date of appointment. Federal lobbyists and individuals registered under the Foreign Agents Registration Act may not seek or accept employment with any executive agency with respect to which he or she lobbied within the two years before the date of the appointment. The order also prohibits certain golden parachutes from former employers and includes a general two-year prohibition on lobbying after leaving a position.

Covered appointees include every full-time, non-career Presidential or Vice-Presidential appointee, non-career appointees in the Senior Executive Service, and appointees to certain positions excepted from the competitive service. It does not include any person appointed as a member of the Senior Foreign Service or solely as a uniformed service commissioned officer.

On his last full day in office, President Trump revoked an executive order concerning governmental ethics and, in effect, removed barriers for former officials to lobby the United States government immediately. On January 19, President Trump signed an Executive Order fully revoking his prior Executive Order from 2017, which mandated ethic commitments for executive branch appointees.

On January 28, 2017, President Donald J. Trump signed Executive Order 13770, Ethics Commitments by Executive Branch Appointees, which prohibited appointees of the Executive Branch from lobbying the agency they were appointed to serve for five years after leaving office. Additionally, they would be permanently prohibited from engaging on behalf of any foreign government or foreign political party if it would require them to register under the Foreign Agents Registration Act.

The executive order is effective at noon when President-elect Joe Biden is sworn into office. Those prohibitions will no longer exist under President Trump’s 2017 Executive Order. The early order also prohibited appointees from accepting gifts, with limited exceptions, from registered lobbyists and lobbying organizations for the duration of their service as appointees. Also, registered lobbyists appointed to an executive agency could not participate in matters in which they lobbied for two years after the date of their appointment.

This 2017 Executive Order had superseded and revoked a similar Executive Order signed by former President Barack Obama in 2009.

In one of its first decisions of 2021, the Federal Election Commission (FEC) released an Advisory Opinion agreed upon unanimously. Advisory Opinion 2020-02 does not break new ground, but affirms that citizens of the United States living abroad may purchase online political advertisements in the U.S.

The FEC stated campaign finance regulations do not distinguish between citizens living in the U.S. and those residing abroad. They affirmed U.S. citizens living abroad may make expenditures, independent expenditures, and disbursements in connection with elections in the United States.

The opinion arises from a query of a U.S. citizen living in Canada wanting to purchase a political advertisement on Facebook. According to the Advisory Opinion, Facebook requires those purchasing political advertisements provide a U.S. address and to make payments from a U.S. bank account in U.S. dollars, which would preclude the requestor from purchasing the advertising.

While not ruling on Facebook’s preconditions for the purchase of an advertisement, the FEC stated the federal campaign finance law does not require a purchaser to provide Facebook or any other media platform proof of a U.S. bank account or a U.S. residential address. The federal regulations also do not require payment be made from financial instruments drawn on a U.S. bank.

The full six seats of the FEC have only been occupied since December 9, when the U.S. Senate confirmed three new commissioners. This allowed the FEC, where only three of the agency’s six seats were filled since July 4, to be able to conduct official business. The FEC requires at least four commissioners to agree on any official action.

A one-time grace period for lobbyists to register in the Canadian territory of Yukon ended on January 13.

On October 15, the Canadian territory of Yukon’s new and first lobbying law came into force with the online Yukon Lobbyist Registry becoming live. All lobbyists were given a one-time only grace period of 90 days to understand their requirements and to register. Both consultant lobbyists and in-house lobbyists are required to register under Yukon’s lobbying law. As of January 12, four consultants and five in-house lobbyists have registered, according to the Yukon News.

Registration is required for individuals communicating with a public office holder, directly or through grassroots communications, in attempts to lobby. Additionally, a consultant lobbyist is required to register when arranging a meeting between a public office holder and any other person for the purposes covered by the Act.

Now, in-house lobbyists must register no later than 60 days after meeting the law’s threshold for registration. Consultant lobbyists must register no later than 15 days after starting an undertaking on behalf of a client.

Penalties for violations of the Lobbyist Registration Act include fines up to $25,000 for the first violation and up to $100,000 for each subsequent violation.

Legislation aimed at reforming U.S. campaign finance, lobbying, and ethic laws is being reintroduced in the U.S. House of Representatives. H.R. 1, For the People Act 2021, is a sweeping 791-page bill incorporating much of H.R. 1 introduced in 2019 by the last Congress. That bill passed the House in the previous Congress but never got a vote in the U.S. Senate.

Among the changes in the bill, H.R. 1 restructures the Federal Election Commission and amends federal conflict of interest and lobbying laws. Introduced by Rep. John Sarbanes, the bill requires enhanced disclosure of donors making political contributions, creates a multiple matching system for small donations for political campaigns, and amends rules governing super PACs. If passed, the bill also requires presidential candidates to disclose their tax returns, prohibits partisan gerrymandering, increases oversight over election vendors, creates an automatic voter registration across the country, and changes registration requirements for lobbyists and foreign agents.

Another bill reintroduced is H.R. 244, Executive Branch Conflict of Interest Act, which expands and establishes new prohibitions related to conflicts of interest involving certain federal government employees, prohibits a federal government employee from accepting a bonus from a former private sector employer for entering government service, and increases lobbying restrictions to two years for certain senior officials. H.R. 244 also prohibits a procurement officer in the federal government from working for a company that received a contract overseen by the procurement officer during the officer’s last two years in government service.

On January 11, the Federal Election Commission’s published its civil monetary penalty amounts adjusted for inflation in the Federal Register.

The potential fine for civil violations of federal campaign finance laws have increased to range from $6,141 to $71,812, from the previous range of $6,069 to $70,973. The amounts are calculated through a statutory formula applying the most recent “cost-of-living adjustment multiplier,” issued by the Office of Management and Budget, to the current amounts.

The amended civil monetary penalties took effect as of January 11, the publication date.