On Friday, February 3, the Federal Election Commission (FEC) published its price index adjustments for expenditure limitations and the federal lobbyist bundling disclosure threshold.

The lobbyist bundling disclosure threshold has increased for 2017 from $17,600 to $17,900. This threshold amount is adjusted annually. Federal law requires authorized committees of federal candidates, leadership political action committees (PACs), and political party committees to disclose contributions bundled by lobbyists and lobbyists’ PACs.

Additionally, the FEC published its adjusted Coordinated Party Expenditure Limits for political parties for 2017.

Today, the Federal Election Commission (FEC) published the 2017-2018 election cycle contribution limits, which have been indexed for inflation. As required by the Bipartisan Campaign Reform Act of 2002, the FEC must adjust certain contribution limits every two years.

The individual and nonmulticandidate PAC contribution limit to federal candidates will remain at $2,700 for both primary and general elections, allowing for a total of $5,400 for a federal candidate. The limits on contributions by individuals to national party committees has increased from $33,400 to $33,900 per calendar year.

Individuals may now contribute $101,700 per calendar year to committees of a national political party for presidential nominating conventions, to committees of a national political party for preparation for and the conduct of election recounts and contests and other legal proceedings, and to committees of a national political party for the construction, purchase, renovation, operation, and furnishing of one or more buildings for party headquarters.

The new limits are effective retroactively to January 1, 2017.

On January 12, the Federal Election Commission (FEC) was unable to agree on a policy to clarify when and if a U.S. domestic subsidiary corporation of a foreign national is illegally involved in political activity.

Federal law prohibits foreign nationals from directly or indirectly making contributions, donations, expenditures, independent expenditures, and disbursements in connection with federal, state, or local elections. FEC regulations also prohibit foreign nationals from directing, controlling, or participating in the decision-making process of any person, such as a corporation, with regards to decisions concerning the making of contributions, donations, expenditures, or disbursements in connection with elections in the U.S.

Additionally, the FEC was unable to reach an agreement on the creation of a safe harbor for political committees to accept corporate contributions deemed not to have come from foreign national sources.

In response, Vice Chair Caroline C. Hunter and Commissioners Matthew S. Petersen and Lee E. Goodman issued a statement.

A previous attempt to reach an agreement on this issue in September also failed.

Constitutional Amendment 2, a reform measure approved in November, is facing a second legal challenge in federal court from plaintiffs who claim the amendment unconstitutionally restricts free speech and association.

The suit was filed by Farmers State Bank and Herzog Services, with additional plaintiffs including the American Democracy Alliance, Missourians for Worker Freedom, Freedom PAC, the Free and Fair Election Fund, and John Elliott, a citizen. Plaintiffs contend the amendment’s contribution restrictions impermissibly prohibit corporate (including nonprofit) contributions in ballot measure and judicial retention campaigns.

A separate suit was filed by the Association of Missouri Electrical Cooperatives earlier in December.

The staff of the Maine Ethics Commission (MEC) will propose legislation to the Commission on Governmental Ethics and Election Practices at a meeting on December 8, 2016, to enhance the public’s understanding of major contributors to political committees.

The statutory proposal would require national organizations contributing more than $100,000 to Maine-based political committees to file a one-time report with MEC detailing basic contact information about the national organization, a responsible officer, the form of the organization, and a description of its purpose. The report would require the organization to provide the top five sources of funding received during the previous 12 months. Failure to file a report could result in a $50,000 penalty.

If the statutory proposal is approved by the commissioners, it would then go to the Legislature for consideration.

The Election Finances Statute Law Amendment Act was passed by the Legislative Assembly on December 1, 2016. It was introduced after an investigation into pay-to-play fundraising and cash for access scandals.

The investigation revealed that corporations and lobbyists had spent up to $10,000 to buy time with cabinet members in seeking policy decisions and contracts. The new amendment will prohibit all provincial politicians, candidates, and senior political staffers from attending fundraising events and ban contributions from corporations and unions.

In addition to these prohibitions, donations from individuals are limited to $1,200 per political party annually, down from $9,975 under the current system. Third-parties, who currently face no spending restrictions on advertising, will be capped at $100,000 per election period and $600,000 in the six months before a general election is called. A spending cap will also be placed on political party advertising at $1 million in the six months before a general election is called.

The bill was passed despite negative feedback regarding loopholes in the legislation. It will go into effect on January 1, 2017.

The 2016 election was about a lot more than just a battle between Donald Trump and Hillary Clinton. Across the country, states asked voters to consider a variety of ballot measures, including a few campaign finance issues. At the 2016 National Conference of State Legislatures (NCSL) State Vote seminar held in Washington, D.C., Wendy Underhill recapped a number of those issues and the decisions that voters made on Nov. 8.

Both California and Washington held votes related to the United States Supreme Court ruling in Citizens United vs. FEC. Voters approved ballot measures that urged government leaders to use their power to work to overturn the Supreme Court’s ruling, possibly through a constitutional amendment, if possible.

In Missouri, voters approved an initiative establishing limits on campaign contributions to candidates for state or judicial office; while in South Dakota, voters approved an initiative to create a publicly funded campaign finance program and an ethics commission.

For more from the NCSL State Vote seminar you can view some of the presentation slides here. To see a list of ballot measure election results of interest to government relations professionals, take a look at our 2016 election dashboard.

On Nov. 17, California’s Fair Political Practices Commission (FPPC) approved regulations to make biennial cost of living adjustments to campaign contribution and gift limits that will apply from Jan. 1, 2017, through Dec. 31, 2018.

The newly amended regulations change the gift limit from $460 to $470 and makes increases to campaign contribution limits.

On November 16, 2016, Gov. Andrew Cuomo released a statement proposing plans to limit campaign contributions and close loopholes for those doing business with the state.

In response to contracting scandals at state universities, Cuomo intends to appoint inspectors general to investigate fraud and abuse at the State University of New York and the City University of New York.

Furthermore, Cuomo will appoint a chief procurement officer to review all state contracts and grants for the purpose of re-establishing public trust. The entire statement can be accessed here.

Photo of Governor Cuomo courtesy of Pat Arnow on Wikipedia.