October 11, 2011 •
Texas Ethics Commission To Be Evaluated
Sunset Advisory Commission Assessment
The Sunset Commission, a legislative body created by the Texas Legislature to identify and eliminate waste, duplication, and inefficiency in government agencies, will seek public input during its scheduled review of the Texas Ethics Commission.
During the evaluation of the Ethics Commission’s mission and performance, submitted comments and suggestions will be accepted until the suggested date of November 21. The Sunset Commission then anticipates it will issue a report in March 2012 followed by a public hearing with testimony in April.
Based on the public input and the report, any recommendations to the legislature will be submitted at the start of its next session in January 2013.
Some of the duties the Texas Ethics Commission administers and enforces are the election code concerning political contributions, expenditures and political advertising, and lobbying registration, reports and activities.
The announcement of the review can be found here.
Photo of the Texas State Capitol by LoneStarMike on Wikipedia.
October 11, 2011 •
FEC Wants Input on Internet Communications
Seeking Comments
The Federal Election Commission (FEC) is soliciting comments for possible regulations concerning exceptions to its rules regarding disclaimers on internet communications, hoping to glean insights to keep pace with the rapidly evolving technological advances available to practitioners of campaign finance.
In its draft Advance Notice of Proposed Rulemaking, the FEC invites comments addressing the ways that campaigns, political committees, and others use or may soon use the internet, mobile devices, and other technologies to disseminate and receive campaign and other electoral information. The Commission is also interested in possible modifications and technological alternatives to the current disclaimer requirements, and data or experiences “in purchasing, selling, or distributing small or character-limited advertisements online.”
The FEC anticipates any final rules would not become effective until after the 2011-2012 election cycle.
October 6, 2011 •
FEC Will Not Be Enforcing Certain Laws
Consistent with Carey v. FEC
The Federal Election Commission (FEC) will no longer prohibit nonconnected political committees from accepting corporate and labor organization contributions, provided the political committee maintains and deposits those contributions into separate bank accounts.
The Commission will also not limit the amounts permissible sources can contribute to such accounts.
In an statement released by the FEC, it stated, consistent with its agreement to a stipulated order and consent judgment in Carey v. FEC, it would no longer enforce 2 U.S.C. §§ 441a(a)(1)(C) and 441a(a)(3), as well as any implementing regulations, against any nonconnected political committee with regard to contributions from individuals, political committees, corporations, and labor organizations under certain conditions.
A single committee may now contribute directly to candidates and political committees, and make independent expenditures, separating the funds only by using two separate bank accounts. The committee must maintain the statutory limits on the solicitation of funds used for direct contributions while it may simultaneously seek unlimited funds for use in their independent expenditures.
The FEC intends to develop new regulations and amend its reporting forms. Until that time, the Commission says committees should follow the procedures the FEC outlines in its current statement, which is located here.
This post follows up previous articles by George Ticoras, “FEC Agrees Not to Enforce Some Laws Against NDPAC” and “One PAC Is Enough.”
October 5, 2011 •
Ethics Bill Blocked In Massachusetts
Republican Legislation
An ethics reform bill heralded this summer by Massachusetts House Republicans has been blocked.
The Democratic-controlled house voted 116 to 34 today against a motion allowing House Bill 3718 out of committee for a full vote. Among the changes in the bill are the requirement lobbyists wear badges identifying themselves as such, contribution restrictions for house members, and the prohibition of house members and their staff from contacting public entities regarding pending procurement decisions.
The reform measure arose as a response to the conviction this summer of former house speaker Salvatore DiMasi on seven counts of corruption.
This post follows up a previous article by George Ticoras, “New House Ethics Rules Proposed for Massachusetts” from June 23.
Photo of the Massachusetts Statehouse by Fcb981 on Wikipedia.
October 5, 2011 •
Final Guidance for Prohibiting Federal Lobbyists on Boards Issued
Office of Management and Budget
Registered federal lobbyists may not serve on any boards, commissions, or similar groups created by the President, the Congress, or an Executive Branch department or agency, the Office of Management and Budget (O.M.B.) has affirmed.
The O.M.B. issued its Notice of Final Guidance detailing, in a question and answer format, the limitations of federal lobbyists’ service on federal boards and commissions. The policy does not apply to full-time federal employees, state lobbyists, or employees of organizations that engage in lobbying activities. If an appointment is made pursuant to statutory authority or presidential directive by Congress or state governors, the O.M.B. encourages the appointments to be made to individuals who are not federally registered lobbyists whenever possible.
The O.M.B. policy was created at the directive of a June 18, 2010 Presidential memorandum “Lobbyists on Agency Boards and Commissions.” Federal lobbyists on boards and commission as of June 18, 2010 may serve out the remainder of their terms.
The O.M.B.’s final guidance will be effective 30 days from issuance in the Federal Register.
October 4, 2011 •
FEC Allows Trade Association Limited Solicitation for Federal Candidates
Not Considered In-Kind Contribution
The Federal Election Commission (FEC) issued an Advisory Opinion stating a “project” created by a trade association may make certain communications to the general public asking individuals to contribute directly to particular federal candidates.
The Utah Bankers Association (U.B.A.) had requested the Advisory Opinion. It intends to solicit the general public through its website and e-mail, as well as through the website of “Friends of Traditional Banking,” a project created for this purpose. There will be no coordination with any candidate and no contributions will be accepted or forwarded to federal candidate’s committees.
In Advisory Opinion 2011-14, the Commission concluded the expenses for soliciting contributions through a trade association’s own website and e-mail is not an in-kind contribution because an internet communication is not a “public communication” if it “is not placed for a fee on another person’s website,” and therefore does not meet the content prong test of coordinated communications. The Commission also found U.B.A.’s plan is not “electioneering communications” which are limited to broadcast, cable, or satellite communications
Other questions related to the U.B.A. request were also addressed in the opinion.
October 3, 2011 •
Alaskan Lobbyists Can Contribute in New Districts
Advisory Opinion
Only lobbyists in Alaska who are constituents in a state candidate’s newly certified district may donate to a candidate’s campaign, an Advisory Opinion from the Alaska Public Offices Commission has declared.
Because a lobbyist residing in a candidate’s district may contribute to a candidate, Representative Bob Lynn requested an opinion regarding whether a lobbyist in his current district could donate to his campaign when he or she may not be a constituent in his proposed new voting district.
Advisory Opinion 11-14-CD concludes candidates “will only be able to accept donations from lobbyists residing in the new district.”
Presently, only candidates for the proposed new districts, and not the current districts, are being certified by the Division of Elections. In its analysis, the Advisory Opinion also articulates, “Whether or not a lobbyist resides in the candidate’s district is determined on the day the contribution is accepted.”
September 30, 2011 •
MSRB Rule G-37 Reminder
Municipal Securities
The Municipal Securities Rulemaking Board (MSRB) has issued a reminder regarding the application of rule g-37 to federal election campaigns of issuer officials.
In the notice, the MSRB reminds “brokers, dealers and municipal securities dealers” of prohibitions outlined in previous MSRB guidance notices, which highlight the rules and prohibitions concerning solicitations and contributions for certain state and local officials seeking election to federal office.
Generally, issuer officials are directly or indirectly responsible for, or can influence the outcome of, the hiring of a broker, dealer or municipal securities dealer for municipal securities business.
The reminder can be found here.
September 29, 2011 •
Utah Special Session October 3
Governor Issues Proclamation
Utah Governor Gary R. Herbert has signed a proclamation to officially convene a special session of the Utah Legislature on Monday, October 3.
The Governor had earlier announced the date, but the proclamation formally outlines the purpose for the special session with seven legislative issues, including adding the presidential primary to the regular primary ballot, redistricting, and making changes to the workers’ compensation insurance requirements.
The Governor’s press release can be found here.
September 27, 2011 •
New Jersey Presidential Primary Moved
Bill Signed Into Law
New Jersey Lieutenant Governor Kim Guadagno signed into law a bill moving the state’s presidential primary from February to June.
Assembly Bill 3777 eliminates separate presidential primary elections and provides for delegates and alternates to political party national conventions to be elected at regular June primary elections.
Lt. Governor Guadagno assumed the executive role of Governor Chris Christie while he was out of the state.
September 23, 2011 •
Indianapolis Purchasing Department Software Change
Complete by October 3
Today the Indianapolis Office of Finance and Management begins implementation of its new Enterprise Resource Planning software, which will cause a temporary halt on generating request for bids or quotes, and vendor payments.
The new system will allow informal quotes to be e-mailed as long as the Office has a vendor’s current contact information and a valid e-mail address. Invitations to bid will be formatted differently but contain the same information. The vendor notification of this change can be found here and the Purchasing Division home page can be found here.
The conversion is expected to be complete by October 3.
September 21, 2011 •
Constitutional Amendment to Reverse Citizens United
Congress and the States
An amendment to the U.S. Constitution seeking to reverse the ruling of the Citizens United decision has been reintroduced in Congress.
Congressman John Conyers and Congresswoman Donna F. Edwards, co-sponsors of House Joint Resolution 78, want to give Congress and the states specific authority to regulate corporate expenditures on political activity. The amendment reads “nothing in this Constitution shall prohibit Congress and the States from imposing content-neutral regulations and restrictions on the expenditure of funds for political activity by any corporation, limited liability company, or other corporate entity, including but not limited to contributions in support of, or in opposition to, a candidate for public office.”
In Congresswoman Donna F. Edward’s press release she states, “Justice John Paul Stevens warned that the Supreme Court’s ruling in Citizens United threatened ‘to undermine the integrity of elected institutions around the nation’ and how right he was. Since that flawed ruling was issued, campaign spending by outside groups including corporations surged more than four-fold to reach nearly $300 million in the 2010 election cycle.”
The amendment also reads “nothing contained in this Article shall be construed to abridge the freedom of the press.”
September 20, 2011 •
O.G.E. Proposes New Rules on Lobbyist Gifts
Exceptions to be Precluded
The Office of Government Ethics (O.G.E.) has issued proposed lobbyist gift ban rules, which would apply to all executive branch employees.
Most of the proposed rules deal with limiting, for lobbyists, the exceptions of the ban on gifts. For example, executive branch employees would not be permitted to accept invitations extended by lobbyists for free attendance at widely attended gatherings that would normally fall under the gift ban exception. Non-profit professional associations, scientific organizations, and learned societies, which are also sometimes registered lobbyists, would still be afforded the exception. The O.G.E. based much of its reasoning on the notion “the cultivation of familiarity and access that a lobbyist [gains]” may be used in the future by lobbyists to obtain more sympathetic hearings for clients.
Another change would preclude lobbyists from the gift ban exception of social invitations, such as invitations to cocktail parties and movie screenings, if the invitations were extended because of the employee’s official position, even if the lobbyist is not a prohibited source. The O.G.E. argues in its proposal that “the lobbyist could use social events as a way to build general good will with a class of employees in case access is needed for a future issue or client.”
The proposed rules arise because an earlier Presidential Executive Order regarding gifts to non-career political appointees, which had called for the O.G.E. “to apply the lobbyist gift ban set forth [in the order] to all executive branch employees.” Written comments about the rule must be received by the O.G.E. before November 14, 2011
September 20, 2011 •
NJ Governor Calls Again For Ethics Reform
Uniform Pay-to-Play Statewide
New Jersey Governor Chris Christie renewed calls on the Legislature to pass ethics reform. In a press release, the governor stated, “New Jersey’s ethics laws remain a patchwork of ineffective half measures and loopholes that fail to apply a uniform standard of rules of conduct for all levels of government in our state.”
Highlighting a report issued last week by the State Comptroller which emphasized the failure of the state’s pay-to-play laws, the governor reiterated the need for the changes in his proposals, which include imposing a uniform standard for awarding contracts at all levels and branches of government in New Jersey. His proposals would also end ‘wheeling,’ a practice of transferring political donations to circumvent campaign financing laws.
Governor Christie has pushed pay-to-play reform in New Jersey by linking financial Transitional Aid to municipalities with the requirement the municipalities adopt local pay-to-play ordinances.
A post about the State Comptroller report can be found here.
State and Federal Communications, Inc. provides research and consulting services for government relations professionals on lobbying laws, procurement lobbying laws, political contribution laws in the United States and Canada. Learn more by visiting stateandfed.com.