Ohio – Doctors Challenge Contribution Restrictions

The plaintiffs, who wanted to make campaign contributions to the reelection campaign of Ohio Attorney General Richard Cordray, allege the provisions of Ohio Revised Code section 3599.45 violates their First Amendment rights.

The plaintiffs are seeking an order from the U.S. District Court declaring the law unconstitutional as well as an order enjoining the Ohio Secretary of State from enforcing it.

The Chamber filed for, and was granted, a preliminary injunction against Land’s initial interpretation of Michigan’s campaign finance laws in the wake of the U.S. Supreme Court’s “Citizens United” decision. Land ruled the Chamber may make independent expenditures but could not set up a PAC to make them. Under the stipulated ruling, corporations, organization, and unions are still prohibited from making direct corporate contributions or using a PAC to do so.

Register to view our Citizens United Update and read how other states are reacting to the Citizens United decision, here.

You can directly submit questions for this feature, and we will select those most appropriate and answer them here. Send your questions to: marketing@stateandfed.com.

Q. I attended the annual meeting of the National Conference of State Legislatures. While there, I took a group of legislators from various states to dinner and picked up the tab. Most of the legislators were accompanied by spouses. In those jurisdictions requiring disclosure of this dinner expenditure, must I also disclose the amount spent on the spouse?

A. Almost all states requiring disclosure of food and beverage expenditures incurred on behalf of reportable officials also require disclosure of the amount spent on the official’s spouse or immediate family member. However, there are exceptions.

• In Idaho, the lobbying law does not require disclosure of expenditures for spouses and family members of legislators. However, it is common practice for lobbyists to report such expenditures anyway.

• In Michigan, food and beverage expenditures on behalf of spouses or family members are not reportable. However, travel expenditures greater than $725 on behalf of spouses or family members are reportable.

• In Montana, a principal is not required to report expenditures made on behalf of a spouse or immediate family member of a legislator, public officer, or employee.

• In Rhode Island, expenditures made on behalf of family members are not reportable as lobbyist expenditures, but are reported by elected officials.

• In Vermont, expenditures on behalf of a spouse or immediate family member are not reportable.

(We are always available to answer questions from clients that are specific to your needs, and we encourage you to continue to call or e-mail us with questions about your particular company or organization. As always, we will confidentially and directly provide answers or information you need.) Our replies to your questions are not legal advice. Instead, these replies represent our analysis of laws, rules, and regulations.

The Connecticut House of Representatives voted to override Governor M. Jodi Rell’s veto of the bill designed to reinstate the public election financing program, which had been previously limited by a federal court decision. The state senate had already voted to override the veto.

The immediate effect of the vote is to provide gubernatorial candidate Dan Malloy with six million dollars from the Citizens’ Election Program, twice as much as he was originally scheduled to receive.

Attorney General Darrell McGraw issued a statement suggesting a special primary election be held in November to begin the process of filling U.S. Sen. Robert Byrd’s seat despite the fact current law does not allow for it. Byrd, who served in the Senate for more than 50 years, passed away on June 28, 2010. The initial ruling from Secretary of State Natalie Tennant says the election may not be held until November, 2012 because the filing deadline to be a candidate has passed. McGraw says Tennant’s ruling does not give enough weight to the Seventeenth Amendment of the Constitution, which provides for popular election of Senators and only temporary appointments. Under McGraw’s plan, the legislature would actually change the state election code to allow for an election this year under these circumstances. Governor Joe Manchin has indicated he will speak with legislative leadership about changing the election code at the special session scheduled to convene on July 19, 2010.

Here is your chance to “Ask the Experts” at State and Federal Communications, Inc. You can directly submit questions for this feature, and we will select those most appropriate and answer them here. Send your questions to: marketing@stateandfed.com. (Of course, we have always been available to answer questions from clients that are specific to your needs, and we encourage you to continue to call or e-mail us with questions about your particular company or organization. As always, we will confidentially and directly provide answers or information you need.) Our replies to your questions are not legal advice. Instead, these replies represent our analysis of laws, rules, and regulations.

Q. My employer makes corporate contributions in California. We have not yet exceeded $10,000 in calendar year 2010. The primary election and special elections are taking place, along with the general election in the fall. If we decide to make contributions, when do we have a late contribution report due?

A. The California “Late Contribution Report” [Form 497], sometimes referred to as the “24-hour report” is due during the 16-day period preceding any election if all of the following criteria are met:

• The contribution is $1,000 or more. This includes non-monetary and in-kind contributions.
• The corporation making the contribution must have already qualified as a major donor, or the contribution made during the 16-day period before the election puts them over the $10,000 threshold and they become a major donor.
• The recipient candidate or ballot committee must appear on the ballot at the election for which the 16-day period applies.
• Contributions to political parties made during the 16-day period are also included.

The filing requirements for Form 497 are:

• The report is due within 24 hours of making the contribution.
• No signature is required.
• The report must be filed electronically with the California Secretary of State, Political Reform Division, and then followed up by paper filing via facsimile to the following:

• California Secretary of State, Political Reform Division
• Los Angeles County Registrar/Recorder
• San Francisco City and County Registrar

If the contribution is non-monetary or in-kind, the contributor must notify the recipient of the value of the contribution within 24 hours of making the contribution. The notice of value does not need to be filed with the state or any of the other filing offices listed above.

There is no standardized form. The notice should be sent to the recipient by personal delivery, fax, or guaranteed overnight delivery.

As a reminder, the late contribution must still be reported on the next major donor report that is due. In 2010, major donor reports are due July 31, 2010, for the period covering January 1 to June 30; and January 31, 2011, for the period covering July 1 to December 31.