On Thursday, May 12, the House Committee on Oversight and Government Reform and the House Small Business Committee will hold a joint hearing to examine a proposed presidential executive order requiring disclosure of political contributions by governmental contractors.

The draft proposed executive order, which was leaked to the press, would require every entity submitting offers for federal contracts to disclose certain political contributions and expenditures made within the two years prior to submission of their offer. The disclosure requirement includes contributions made to federal candidates, parties, and committees, by the bidding entity, its officers, and any affiliates or subsidiaries within its control. Contributions made to parties for independent expenditures and electioneering communications would also have to be reported. These disclosures would be required whenever the aggregate amount of the contributions and expenditures by the bidding entity exceeds $5,000.

The hearing is scheduled to examine the proposed executive order, evaluate its impact and consequences on the federal acquisition system, and determine whether it introduces politics into the procurement process.

A report released by the Government Accountability Office reveals disclosure reporting terminology and reporting requirements are a challenge for some lobbyists. The 2010 Lobbying Disclosure Observations on Lobbyists’ Compliance with Disclosure Requirements also found some lobbyists lacked clarity in determining what constitutes a lobbying activity versus a non-lobbying activity. Generally, however, the findings in the report, which were substantially the same as prior reports, show lobbyists as a whole complying with disclosure and reporting requirements.

The GAO is required by law to prepare reports determining the efficacy of lobbying compliance and reporting, and identify any challenges to compliance. This is their fourth report.

U.S. Representative Chris Van Hollen has filed both a lawsuit against the FEC and a petition at the FEC seeking to challenge regulations of disclosure requirements of contributions for “electioneering communications” and “independent expenditures”. In Van Hollen v. FEC, he claims the FEC regulation 11 CFR §104.20(c)(9), which requires disclosure only of those making contributions over $1,000 to an entity for the purpose of furthering electioneering communications, contradicts the statute which requires disclosure of all donors making contributions over $1,000.

The separately filed petition with the FEC requests they revise and amend regulations currently allowing independent expenditure groups to not reveal donors giving over $200 except for those contributors who gave for the purpose of furthering the reported independent expenditure. Representative Van Hollen alleges this contradicts the statute, which requires disclosure of all donors who gave over $200 to the entity.

The Alaska Legislature was adjourned on its scheduled date, but not in its usual manner.

Because the House and Senate could not agree on the time of the adjournment, which is on the 90th and last day authorized by law, Governor Parnell himself invoked state constitutional authority and adjourned the 27th session of the legislature on April 17. He then immediately called a special session to begin April 18.

The special session is limited by law to a maximum of 30 days.

Individuals and entities using the FEC’s FECFile software to file will have to update to the software’s latest version (7.0.1.0).

Reports using earlier versions will not be accepted.

Those using commercial software are advised to contact his or her vendor to ensure compliance with the latest electronic filing format.

Representative Anna Fairclough introduced a bill concerning small procurements with the state, which includes the requirement of vendors to provide proof of an Alaska business license.

House Bill 204 also contains other mandates for vendors, including the registration of construction contract bidders and offerers, the establishment and maintenance of lists of person who want to contract with the state or state agencies, and small procurement provisions for certain amounts of leased space.

The legislation increases the maximum ceiling amounts of what constitutes a small procurement from $50,000 to $100,000 for supplies, services, or professional services; $100,000 to $200,000 for a construction, and from 3000 to 7000 square feet for a lease.

Photo of the Alaska State Capitol by Kevin Lam on Wikipedia.

Providence has passed a new lobbyist registration law. The Lobbyist Disclosure Ordinance requires registration before the first lobbying activity. Online registration will be an available option. Each lobbyist will receive an ID badge with his or her name, photograph, identifying information, and the name of each client being represented.

There is a $150 filing fee for lobbyists employed by entities with budgets over $250,000. Otherwise, the filing fee is $25. Lobbyists and employers will be required to file quarterly reports, and a final report in January detailing all expenses and compensation for the previous calendar year.

Penalties include fines up to $250 a day, up to a maximum of $25,000 per calendar year, and a prohibition of lobbying the city until the following year or until compliance is established. The ordinance takes effect May 16.

Photo of the Providence City Hall by Anatoli Lvov.

The City of Paterson has implemented a new pay-to-play ordinance which enhances the rules concerning contribution limits for entities doing business with the city. Ordinance 11-006 includes an absolute ban on contributions between the time of first communication regarding a specific agreement and the termination of negotiations, the rejection of a proposal, or the completion of a contract. The ordinance also outlines specific contribution limits, in the 12 months prior to a contract, to mayoral and governing body candidates and their committees, joint candidate committees, Passiac County political committees, and PACs.

In order to receive financial aid from the state, the City of Paterson’s passage of the legislation was required by an earlier agreement with the New Jersey Transitional Aid to Localities program, the state’s financial aid program for local municipalities and counties.

Map of Paterson in southern Passaic County, New Jersey by JimIrwin on Wikipedia.

The Supreme Court has denied a petition for a writ of certiorari challenging the limits a political party can spend in coordination with a candidate, leaving in place the $5,000 limits on party contributions to candidates. In Cao v. FEC, the Republican National Committee had argued making their expenditures in coordination with Louisiana Congressman Anh “Joseph” Cao, as opposed to making completely independent expenditures for him, constituted both Representative Cao’s and the RNC’s free speech.

The District Court Eastern District of Louisiana, following a prior judgment from the Court of Appeals for the Fifth Circuit on other grounds, found 2 U.S.C. §441a(a)(2)(A), limiting the amount of the contributions, constitutional. The RNC’s appeal had been filed by James Bopp, Jr.

This post is follows two previous Lobby Comply articles by George Ticoras:

“$5,000 Contribution Limit Upheld” from November 22, 2010

“RNC Argues for Coordinated Campaign Spending” from December 13, 2010

Photo of the U.S. Supreme Court Building inscription by UpstateNYer on Wikipedia.

UTAH: Governor Gary Herbert has called a special session of the legislature to convene at noon on March 25. The governor stated the purpose of the special session will be to repeal HB477, an open records law which the governor had previously signed earlier this month. The legislature had adjourned on March 10.

LOUISIANA: The legislature convened on March 20 for an ‘extraordinary session’ to establish redistricting boundaries for all congressional, state and local entities’ elections. The session is scheduled for no later than April 13. The regular session of the legislature convenes on April 25.

The FEC has released an Interpretive Rule Regarding Electronic Contributor Redesignations. A contribution made for one election may be applied to another election if the redesignation is in writing and signed by the contributor, according to commission regulations.

The commission has found a certain method of electronic redesignation meets this requirement. The method, described in the commission’s interpretive rule, requires the contributor visiting a website to fill out an electronic form authorizing the redesignation and to verify their identity by entering their personal information, including his or her first and last name, address, phone number, e-mail address, occupation, and name of his or her employer. The commission found this process sufficiently equivalent to a written signature.

The House has included a provision in their appropriations bill which would double lobbyists’ registration fees. House Bill 3700 increases lobbyist and lobbyist’s principal registration fees to $200. The State Ethics Commission would retain fifty percent of the increased fee and the remaining fifty percent would go to the state’s general fund.

Also included in the bill is a provision precluding the State Ethics Commission staff from making any public comment which in any way reflects a personal opinion on any matter which is before the commission.

Securities and Exchange Commission Rule 206(4)-5, regarding political contributions to government entities from investment advisors, takes effect today. Rule 206(4)-5(a)(1) makes it unlawful for advisors of hedge funds, private equity funds, and certain other investments, to provide investment advisory services for compensation to a government entity within two years after a contribution to an official of the government entity is made by the investment adviser, a covered associate, or its PAC.

On September 13, addition rules take effect, including prohibiting third parties from soliciting government business, and regulating what investment pool advisers may do.

A bill prohibiting public officials from lobbying the Nevada Legislature immediately upon leaving office has been introduced into the assembly. Currently, the state has no revolving door prohibitions and public officials may lobby as soon as they leave office.

Assembly Bill 184 requires a two year cooling off period before a former state legislator, governor, or other specified executive branch official may serve as a paid lobbyist. The bill allows for exceptions such as representing a local agency where the former official is currently employed and making formal appearances before the Legislature.

Photo of the Nevada State Legislature building by Dave Parker on Wikipedia.