November 5, 2010 •
$400,000 for Pay-to-Play
New Jersey Offers Help – With Conditions
In order for the borough of North Arlington to receive $400,000, it must implement pay-to-play laws as one of the conditions for the state’s Transitional Aid to Localities program, which awards grants to the most fiscally challenged municipalities.
Mayor Peter Massa has signed a memorandum of understanding which mandates the borough council pass ordinances limiting awarding public contracts to businesses that have made contributions. Businesses actively contracting with the borough would also be limited from making contributions.
The council has three months to pass the ordinances, in addition to implementing other financial restrictions such as staff reductions and salary freezes, in order to receive the funds.
November 2, 2010 •
Supreme Court Rejects Campaign Committee Appeal
Compliance Reporting Still Required Even With Unlimited Contributions
The Supreme Court has rejected an appeal seeking to eliminate a political committee’s disclosure and administrative requirements. In SpeechNow.org v FEC, the appellants had argued the requirements violate the First Amendment.
The Court of Appeals for the District of Columbia found individual contribution limits to the committee unconstitutional. It additionally held independent expenditure–only groups like SpeechNow must still comply with organizational, administrative, and reporting requirements in the law.
SpeechNow is an unincorporated nonprofit association which supports candidates for federal office who share its views on First Amendment rights of free speech and freedom to assemble.
October 26, 2010 •
Lawsuit Seeks to Allow Foreign Political Contributions
Relief Sought by Foreign Nationals
A lawsuit has been filed in the Federal District Court of the District of Columbia seeking to allow foreign citizens to make political contributions. 2 U.S.C. § 441e and its implementing regulations prohibit political contributions and independent expenditures by foreign nationals living lawfully in the U.S.A. but without legal permanent residence. In Bluman v. FEC, the two plaintiffs, a doctor in residency and a recent law school graduate, both citizens of other countries, are seeking to make political contributions in support of various candidates and political issues ranging from both ends of the political spectrum.
The plaintiffs are specifically requesting the court declare 2 U.S.C. § 441e and its implementing regulations unconstitutional as applied to foreign nationals lawfully residing and working in the United States. They have asked for a three-judge court decision, which may allow for a direct appeal to the United States Supreme Court.
Photo of the E. Barrett Prettyman Federal Courthouse by AgnosticPreachersKid on Wikipedia.
October 20, 2010 •
Baltimore May Expand Lobbying Laws
Bill Introduced to City Council
Baltimore City Council President Bernard Young introduced legislation to expand the city’s rules on lobbying. The Promoting Honesty in Lobbying bill requires individuals paid any dollar amount for lobbying to register as lobbyists. Currently, individuals are only required to register as lobbyists if they earn $2,500 or more.
Registration would also be required of individuals spending 20 percent or more of their time over a six-month period on lobbying. Lobbyists would have to report total expenditures for grassroots lobbying, including those for print, audio, visual, and electronic publications. Among other provisions of the bill is the prohibition of a lobbyist stating he or she can obtain the vote of a councilmember.
Photo by Nfutvol on Wikipedia.
October 19, 2010 •
Ethics Commission Not Appealing Decision Striking Down Definition of Committee
New Law Required
The State Ethics Commission will not appeal South Carolina Citizens for Life, Inc. v Krawcheck, a federal court decision finding South Carolina’s statutory definition of committee unconstitutional. The commission has already voluntarily announced it will not enforce provisions of the law concerning committees making independent expenditures.
State Ethics Commission Executive Director Herb Hayden says groups can now both raise and spend unlimited amounts of money and likely will not have to report their donors. He and Senate Ethics Committee Chairman Wes Hayes say a new law is needed to govern committee contribution limits.
October 5, 2010 •
House Passes Bill to Resolve Conflict with States’ Pay-to-Play Laws
Measure now in Senate
The U.S. House of Representatives has passed the State Ethics Law Protection Act. H.R. 3427 would preclude the Federal Highway Administration from interpreting a state’s Pay-to-Play laws as conflicting with federal contract bidding requirements for federal-aid highway projects.
The measure has now passed to the Senate Committee on Environment and Public Works.
September 24, 2010 •
DISCLOSE Act Reintroduced and Then Blocked in Senate
Motion of Cloture Fails
Senate Bill 3628, known as the DISCLOSE Act, was reintroduced in the US Senate a second time but failed to garner the 60 votes necessary to be debated on the floor. The motion of cloture vote of 59 to 39 fell along party lines.
A reaction to Citizens United v SEC, the bill includes measures such as requiring organizations to disclose to shareholders, members, or donors information detailing how disbursements were made for campaign-related activity.
September 22, 2010 •
South Carolina Ethics Commission Limits Enforcement
Lacks Power to Declare Statute Unconstitutional
The State Ethics Commission will not enforce contribution limits for committees making expenditures independent of a candidate’s control or consultation. An earlier requested Attorney General’s opinion found a committee engaging exclusively in independent expenditures is not subject to annual contribution limits.
The Attorney General also confirmed the Ethics Commission did not have the power to declare S.C.C. §8-13-1322(A) unconstitutional. The Ethics Commission then issued an Advisory Opinion declaring the Commission would not enforce any contributions limits under S.C.C. §8-13-1322(A) for committees making independent expenditures.
September 20, 2010 •
South Carolina Defines Committee Too Broadly
Court Finds Part of Ethics Statute Unconstitutional
A U.S. District Court has invalidated a South Carolina statute defining committees, including those commonly known as PACs. In South Carolina Citizens for Life, Inc. v Krawcheck, the Court found the South Carolina Ethics Act placed significant burdens on groups qualifying as committees without giving meaningful consideration of a group’s major purpose, threatening to chill their First Amendment rights. Specifically, the definition of committee in S.C.C. §8-13-1300(6) could encompass any group, without reference to the entity’s major purpose, and was unconstitutionally overbroad.
Photo of the South Carolina statehouse by Nikopoley on Wikipedia.
September 15, 2010 •
72 Hours from Donation to Broadcast
Nevada Transparency Measures to be Introduced in 2011.
Assembly Majority Leader John Oceguera said he will pursue a number of transparency measures in the 2011 legislative session. Among those to be introduced would be a requirement for all candidates for public office to report every financial contribution online within 72 hours of receipt, including the amount received and the donor.
Another measure would introduce a “cooling off” period before public officials could work as lobbyists. Specifically, an elected official or regulator would be prohibited from lobbying the governmental body where the individual served, or any agency they regulated or oversaw, for a period of two years.
September 8, 2010 •
New Jersey Governor Announces Ethics Reform Measures
Governor Chris Christie announced a series of ethics reform measures, including those intent on closing pay-to-play loopholes and curtailing the unlimited transfer of campaign money between county and municipal committees.
The proposal would end the “fair and open contract” exception for businesses which make reportable campaign contributions at the legislative, county, and municipal levels, yet are able to receive contract awards valued greater than $17,500 with local governments – a practice not permitted at the state or gubernatorial level. The new legislation would also restrict the practice of “wheeling” by imposing contribution limitations on county and municipal committees which transfer money between committees and transfer committee contributions to out-of-county or out-of-municipality candidates.
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