On February 3, the U.S. Government Accountability Office (GAO) released a 74-page report discussing current federal campaign finance issues.

The report, Campaign Finance: Federal Framework, Agency Roles and Responsibilities, and Perspectives, offers observations from specialists on the issues.

Specifically, the report covers the legal framework of the federal campaign finance law, various federal agencies’ roles, responsibilities, and enforcement challenges, and several perspectives on certain segments of the legal framework.

One conclusion reached is “campaign finance statutes and regulations have not kept up with the rapid expansion of campaign spending on the internet and do not regulate online political ads to the same extent as television, radio, and print ads.”

Another conclusion is that campaign finance laws related to prohibited activities for foreign nationals may be inadequate to prevent all types of foreign involvement, such as funds raised by and through 501(c) organizations or limited liability companies, which historically have not been required to publicly report their funding sources.

The report also raises the issue of differing and opposing views regarding whether the public disclosure of campaign contributions helps inform the electorate or stigmatizes those supporting unpopular candidates or organizations.

The GAO report recommends the Federal Election Commission (FEC) and the Department of Justice coordinate together to review policies and campaign finance guidance, while acknowledging the FEC currently doesn’t have a quorum to make changes to guidance.

The GAO was asked to review issues related to the enforcement of federal campaign finance laws by Sen. Amy Klobuchar, Ranking Member on the Senate Committee on Rules and Administration.

On January 30, a bill was introduced in the U.S. House of Representatives to amend the Foreign Agents Registration Act (FARA) to help its enforcement.

House Bill 5733, introduced by Rep. Seth Moulton, would waive the application of the FARA law to agents representing foreign enterprises not under the control or direction of foreign governments or foreign political parties.

In his press release, Moulton argues the legislation would make it easier to enforce FARA by narrowing those who must register as foreign agents to include only those people working on behalf of foreign governments or foreign political parties.

The legislation would also exclude agents who represent foreign governments engaging in a pattern of gross violations of human rights from an exemption currently provided under the Act for agents engaged in scholastic and certain other pursuits and would add civil penalties for violations.

On January 20, a new Lobbyist Registry program and associated By-law and Code of Conduct were approved for Collingwood, Ontario, Canada.

The new lobbying law defines lobbying as any communication with a public office holder by an individual representing a business or financial interest with the goal of trying to influence any legislative action, including any development, introduction, passage, defeat, amendment or repeal of a bylaw, motion, resolution or the outcome of a decision on any matter before the Town Council, a committee of the Council, or staff member acting under delegated authority.

The registry, maintained by the Collingwood’s Accountability Officer acting as the Lobbyist Registrar, will identify three types of lobbyists:

• • Consultant lobbyists
  • In-house lobbyists
  • Voluntary unpaid lobbyists acting on behalf of certain entities

While registration is mandatory, not-for-profit groups are not required to register for lobbying activities, unless the group has paid staff and the communication in question falls under the definition of lobbying.

Additionally, community groups and associations whose communications state a position for a general community benefit, either town-wide or local, do not have to register.

As of January 20, 2020, lobbyists are expected to register their name and the reasons for their contact with a public office holder. However, penalties will not begin to be enforced until June 1, 2020, in order to allow the first five months of the registry to operate as an educational period dedicated to learning how and when to use the tool.

On January 13, the U.S. Supreme Court issued an order denying review of an appeal concerning the legality of a Securities and Exchange Commission (SEC) pay-to-play rule, allowing that rule to stand.

Previously, on June 18, 2020, a federal appellate court had affirmed a lower court’s finding that the pay-to-play rule was legal.

In New York Republican State Committee v. SEC, the U.S. Court of Appeals for the District of Columbia Circuit found the SEC’s Financial Industry Regulatory Authority (FINRA) Rule 2030 constitutional.

The rule prohibits a placement agent from accepting compensation for soliciting government business from certain candidates and elected officials within two years of having contributed to such an official’s electoral campaign or to the transition or inaugural expenses of a successful candidate.

The New York Republican State Committee and the Tennessee Republican Party had argued the SEC did not have authority to enact the rule, the order adopting the rule was arbitrary and capricious because there was insufficient evidence it was needed, and the rule violated the First Amendment of the Constitution of the United States.

Elections Canada has published the federal contribution limits for the 2020 calendar year.

In 2020, individuals may contribute up to $1,625 to independent candidates, leadership candidates, registered parties, and to, In total, all of the registered associations, nomination contestants and candidates of each registered party.

The limits also apply to any unpaid balance of loans made during a contribution period and the amount of any loan guarantees made during a contribution period.

The limits increase annually by $25 on January 1.

In Ontario, individual contribution limits for the period from January 1, 2020, to December 31, 2020, have be increased by $25, to $1,625.

This limit applies to contributions made as both money and goods or services given to a political party, candidate or constituency association to support the election of a candidate to the Legislative Assembly of Ontario.

The contribution limit is applicable to both party and non-party candidates in a campaign period and applies to a leadership contestant of a party in a year holding a leadership contest or a calendar year during which the contestant is required to be registered.

Campaign contribution limits increased in British Columbia for 2020 to $1,253.15 for contributions to registered political parties, including their candidates, nomination contestants and registered constituency associations.

Additionally, individuals can contribute up to $1,253.15 to independent candidates and leadership contestants, if a leadership contest is called in 2020.

These limits are updated annually.

The previous limits were $1,225.17 in 2019, and $1,200 in 2018.

Also increased to $370 is the limit of a fee paid to attend a leadership convention or other convention of a political party without counting toward the $1,253.15 limit contribution limit.

On June 16, a special election will be held to fill the seat vacated by Ward 2 D.C. Councilmember Jack Evans.

Evans resigned on January 7 to avoid a council vote on his removal based on alleged conflicts of interests.

The winner of the special election will serve the remainder of Evan’s term, which ends in January 2021, according to WAMU. 

On May 4, 2020, several key changes of British Columbia’s lobbying law come into effect, including changing the name of the Lobbyist Registration Act to the Lobbyist Transparency Act. The legislation making the changes, Bill 54, Lobbyists Registration Amendment Act, 2018, received royal assent on November 27, 2019.

Other coming changes include:

• Reducing the time threshold for requiring in-house lobbyists to register from 100 hours to 50 hours annually
• Adding the requirement for lobbyists to complete a monthly return containing details of actual lobbying activities in the previous month by the 15th of each subsequent month
• Declarations in those returns of what code of conduct the lobbyists has undertaken and where it is available for public viewing

Additionally, a newly enacted prohibition on gifts from lobbyists is included in the bill. However, the prohibition does not apply if the gift is given under the protocol or social obligations normally accompanying the duties of a public office holder and the total value of the gift given, directly or indirectly, is less $100 in a 12-month period.

Beginning in May, the registrar will also have the power to impose a prohibition on lobbying for up to 2 years.

Presently, a new online Lobbyists Registry is in development to replace the current Lobbyists Registry and is scheduled to launch on May 4, 2020.

Also effective on May 4, 2020, the Lobbyists Registration Regulation is repealed and the Lobbyist Transparency Regulation is enacted.

On November 26, Massachusetts Gov. Charlie Baker signed a new campaign finance bill into law. The bill amends the state’s law by now requiring House, Senate and all mayoral candidates to use the depository system of campaign finance reporting.

According to the Office of Campaign and Political Finance (OPCF), “Nearly 500 House and Senate candidates will transition into the depository campaign finance reporting system, as well as about 100 mayoral candidates in cities of 65,000 or less.” House Bill 4087 also requires banks to file monthly disclosure reports on behalf of candidates and certain committees.

Previously, the disclosures were required twice a month. The bill also mandates the OCPF establish regulations concerning social media and its use by appointed public employees.

Additionally, the bill establishes a commission to study the use of campaign funds for family and child care.

The Iowa Ethics and Campaign Disclosure Board named Mike Marshall to serve as its new Executive Director.

Marshall will replace Megan Tooker, who announced her resignation in November as the current Executive Director and Legal Counsel for the Board. Tooker is pursuing other career opportunities.

Marshall is currently the Chief of the Bureau of Professional Licensure at the Department of Public Health. He had previously been the Secretary of the Iowa Senate for eighteen years.

Tooker, who has served with the Board since 2010, will be leaving by the end of 2019.

State Senator Viriato deMacedo announced he will resign from office within the next few weeks.

Sen. deMacedo will begin employment as the Director of Regional Partnerships with Bridgewater State University.

Sen. deMacedo, who has been serving in the Senate for the Plymouth and Barnstable District since 2015, was first elected to the state legislature as a representative in 1998. He held that seat until his move to the Senate.

“I’ve done this for 21 years and it’s been phenomenal, but everything has a season,” deMacedo told the Cape Cod Times.

A date for a special election to fill the upcoming vacancy has not yet been determined.

Bidders attempting to contract with the Canadian federal government are required to certify they have not committed crimes of fraud or acts of corruptions.

Recent amendments to the Government Contracts Regulations require a bidder declare he or she has not, during the bid solicitation process, committed an act or engaged in an activity constituting any specifically enumerated violations under the nation’s Criminal Code, the Financial Administration Act, the Corruption of Foreign Public Officials Act, or the Competition Act.

Additionally, the amended rules allow a contracting authority to now enter into a construction contract, or any contract not using the solicitation of bids, when the value of the contract does not exceed $40,000, an increase from the previous threshold of $25,000.

On October 2, 2019, a U.S. District Court for the District of New Jersey issued an opinion and order issuing a preliminary injunction.

The Injunction prohibits the state of New Jersey from enforcing the changes in the law from a bill passed earlier this year concerning disclosure requirements by independent expenditure committees.

Senate Bill 150, which was to take effect on October 15, requires the committees to disclose donors giving more than $10,000 and expenditures over $3,000.

The parties filing the lawsuit, Americans for Prosperity v. Grewal, argue the disclosure requirements are unconstitutional and violate the First Amendment.

The preliminary injunction will continue while the lawsuit proceeds.