A new Texas Ethics Commission Rule regarding contributions to direct campaign expenditure-only committees became effective today.

Texas Ethics Commission Rule §22.5 requires a political committee intending to act exclusively as a direct campaign expenditure-only committee to file an affidavit with the Texas Ethics Commission stating the committee intends to act exclusively as a direct campaign expenditure-only committee and will not use its contributions made to it to make political contributions to any candidate for elective office, any officeholder, or any political committee making a political contribution to a candidate or officeholder.

The new rule requires the committee file the statement before it can accept a political contribution from corporations or labor organizations.

The Virginia State Board of Elections is seeking public comment on a proposed change to its campaign finance filing deadline. The Board is proposing moving the deadline for electronic filing from 5:00 p.m. on the due date to 11:59 p.m. on the due date.

The change was proposed by Board Chairman Charles Judd, who said backup in online traffic shortly before the deadline could result in late filings, and the 5:00 p.m. deadline was based on a close-of-business mindset prior to the existence of electronic filing.

The Board will accept public comments through March 26, 2014, and may be submitted at http://www.sbe.virginia.gov/.

Lobbying

“Bottom Line” in The Hill.

California: “Fourth client drops lobbyist firm hit with record fines” by Patrick McGreevy in the Los Angeles Times.

Washington: “Lobbyist Paid Meals Legislation Appears To Die In Washington Statehouse” by Austin Jenkins in KUOW.

Campaign Finance

“Illegal Campaign Contributions By Lawyer at Florida Law Firm” by Kent Cooper in Roll Call.

Utah: “House kills campaign donation limits bill” by Lee Davidson in The Salt Lake Tribune.

Wisconsin: “Wisconsin big business interests back campaign finance bill” by Jack Craver in The Capital Times.

Ethics

District of Columbia: “D.C. Businessman Tied to 2010 Mayoral Campaign, Federal Candidate Faces Corruption Charges” by Hannah Hess in Roll Call.

District of Columbia: “Gray knew of ‘shadow campaign,’ Thompson prosecutors say; mayor says it’s all a lie” by Ann E. Marimow, Matt Zapotosky and Paul Schwartzman in The Washington Post.

Honolulu, Hawaii: “Honolulu Ethics Director Takes His Case for More Money to City Council” by Sophie Cocke in the Honolulu Civil Beat.

Michigan: “Michigan campaign finance violation draws near-record fine for union’s actions in 2012 election” by Brian Smith in Michigan Live.

Contributions limits will likely remain in place for the entire 2014 election cycle as Illinois Liberty PAC v. Madigan carries on. In July 2012, the Liberty Justice Center filed suit against Attorney General Lisa Madigan, challenging the Illinois Disclosure and Regulation of Campaign Contributions and Expenditures Act on constitutional grounds.

Specifically, Plaintiffs claim the Act violates the First Amendment and the Equal Protection Clause by exempting political parties from the contribution limits applicable to PACs and individuals, by lifting contribution limits in races where a self-funding candidate or independent expenditure committee spends more than a particular threshold, and by imposing lower contribution limits on PACs than are imposed on corporations, labor unions, and other organizations.

The complaint also challenges the Act’s constitutionality because it classifies legislative caucus committees as political party committees and thereby treats them more favorable than PACs, corporations, and individuals, without valid reasoning.

On March 3, U.S. District Judge Gary Feinerman denied Defendant’s motion to dismiss with respect to the treatment of legislative caucus committees but granted the motion with respect to all other challenges.

Although the court suspects legislative caucus committees are sufficiently similar to political party committees for purposes of constitutional analysis, the case remains open to give both sides a fair opportunity to address the issue.

Lawmakers sent Gov. Jerry Brown a bill designed to strengthen campaign finance laws in response to a recent case prompting the largest campaign reporting fine in state history. Assembly Bill 800 gives the Fair Political Practices Commission (FPPC) the authority to audit campaign funds and seek court injunctions to force compliance with its investigations before elections.

The bill is a response to $15 million in anonymous donations given through an Arizona-based nonprofit that funneled the cash to California political action committees through intermediary groups. The FPPC issued a $1 million fine against two of the groups involved.

Lobbying

“Roscoe Bartlett, defense lobbyist” by Austin Wright in Politico.

“Lobbying Firm Patton Boggs Fights for Itself” by Jennifer Smith and Elizabeth Williamson in The Wall Street Journal.

Canada: “Lawmakers top lobbyists in annual hockey game” by JulieAnn McKellogg and Emily Heil in The Washington Post.

New Jersey: “Hospitals were top spenders on lobbying in 2013, report says” by Susan K. Livio in The Star-Ledger.

Wyoming: “Editorial board: Wyoming lobbyists laws too weak, unenforced” in the Casper Star-Tribune.

Campaign Finance

“Comcast spreads cash wide on Capitol Hill” by Tony Romm in Politico.

Illinois: “Lawsuit challenging campaign financing limits won’t affect 2014” by Kurt Erikson in the Herald & Review.

Iowa: “Is anonymous donating the next big thing in Iowa politics?” by Mike Wiser in the Globe Gazette.

Louisiana:  “Campaign finance bills filed for legislative session that begins March 10: List” by Dan Swenson in The Times-Picayune.

North Carolina: “Dark money comes to light” by Mark Binker in WRAL News.

Utah: “Senate panel endorses campaign finance reform bills” by Dennis Romboy in the Deseret News.

Ethics

California: “California Legislature considers ethics reform bills” by Patrick McGreevy in the Los Angeles Times.

New York: “Assemb. William Boyland guilty on all counts” by John Riley and Anthony M. Destefano in Newsday.

South Carolina: “Book’s sale at park shops needles Sheheen campaign” by Rudolph Bell in The Greenville News.

West Virginia: “Bill would change ethics commission” by Phil Kabler in the Charleston Gazette.

Wisconsin: “Controversial election bills find little support in state Senate” by Matthew DaFour in the Wisconsin State Journal.

Legislative Sessions

Virginia: “Bills of note that passed in the 2014 General Assembly session” by The Associated Press in The Loudoun Times.

Government Tech and Social Media

Minnesota: “Minnesota Announces Civic Tech Legislation” by Sam Roudman in TechPresident.

West Virginia: “Onlookers often rely on social media for session updates” by Mandi Cardosi in The State Journal.

National:

Outrage Over Sexist Remarks Turns Into a Political Fund-Raising Tool

New York Times – Amy Choziak | Published: 2/27/2014

With a record number of women in Congress and dozens more on the ballot, gender-charged attacks – stoked by the growth of social media and small-dollar Internet donations – can generate campaign contributions in an instant. In the past few months, Republicans have likened Democratic U.S. Senate candidate Alison Lundergan Grimes to an “empty dress” and referred to a pregnant woman as a “host.” Democrats blast these comments out to supporters to build voter lists and drum up donations.

Federal:

Democrats Embrace Super PACs, but Some Fear Lack of Focus on Midterm Elections

Washington Post – Matea Gold | Published: 2/28/2014

There is now a near-universal view among top donors and strategists that the Democratic Party needs its own super PACs to compete with the growing role such groups are playing on the right. But there are disagreements over how to use the independent organizations. Some say Priorities USA Action and other groups that can accept unlimited contributions are too focused on the 2016 presidential race and a potential Hillary Clinton candidacy, even as Democrats face a costly, uphill fight this year to retain a thin Senate majority and gain seats in the House.

Group Close to Obama Says It Erred on Donation

New York Times – Nicholas Confessore | Published: 3/4/2014

Organizing for Action, a political advocacy group backed by President Barack Obama, said its executive director set up a White House meeting for a businessperson entangled in a lawsuit with a federal agency, who then pledged to raise $100,000 for the group one day after the meeting. The organization also said on three occasions its fundraisers or other employees had tried to steer potentially controversial donations to allied liberal groups that did not disclose their donors.

From the States and Municipalities:

California – Senate Dems to Propose New Limits on Gifts, Fundraising

Sacramento Bee – Laurel Rosenhall | Published: 3/5/2014

Countering a series of scandals, California Senate Democrats plan to propose sweeping changes to the Political Reform Act, including stricter limits on accepting gifts and campaign contributions. Sources said the legislation will cut roughly in half the $440 annual limit on gifts to elected state officials, and prohibit candidates from holding political fundraisers at the homes of lobbyists.

Colorado – Critics See Proposed Ethics Commission Cue as Bad Medicine

Colorado Independent – John Tomasic and Tessa Cheek | Published: 3/2/2014

A bill that aims to fix the Colorado Independent Ethics Commission comes as the number of complaints filed with the panel continues to grow. House Bill 1258 seeks to bolster protections for state employees who are brought before the commission. It would ensure they are provided with tax-paid legal counsel and have the right to sue individual members of the commission for damages. Critics say the measure would do more harm than good.

Colorado – First and Only Director of Colorado Ethics Commission Steps Down

Denver Post – Lynn Bartels | Published: 3/1/2014

Colorado Independent Ethics Commission Executive Director Jane Feldman has submitted her resignation, effective at the end of March. Complaints about the commission have led to legislation being introduced this session. That would affect its operations.

Florida – Special Interests Pay Their Way onto Florida’s Legislative Agenda

Bradenton Herald – Mary Ellen Klas (Miami Herald) | Published: 3/3/2014

Many of the decisions about what issues make the agenda of Florida’s 2014 legislative session have already been made, in large part due to special interest groups and a torrent of money flowing into the coffers of legislative political committees. Longtime lobbyist Bob Levy said money has always been a major part of what happens in Tallahassee, but the difference is the number of zeroes. “It existed then, but it was $50,000; today it’s $500,000,” said Levy.

Missouri – Small Number of Donations Fuel Missouri Political Spending

St. Louis Post-Dispatch – Walker Moskup | Published: 3/3/2014

From 2011 to 2013, more than half of the money raised by Missouri campaign committees – about $67 million – came from donations of $5,000 or more. Those larger donations represent about three percent of the total number of contributions. The absence of contribution limits in the state exacerbates the reliance on mega-donors, said Missouri State University professor George Connor.

Pennsylvania – D.C.-Based Democratic ‘Super PAC’ Sues to Remove Pa. Law Blocking it from Getting Corporate and Union Money

Harrisburg Patriot-News – Matt Miller | Published: 3/3/2014

A Washington, D.C.-based super PAC filed a lawsuit asking a federal judge to void a Pennsylvania law that is blocking its efforts to raise funds from corporations, associations, and unions in the state. The General Majority PAC contends the U.S. Constitution and a Supreme Court ruling grant it the right to solicit money from those sources to finance its political message during Pennsylvania’s legislative races this year.

Utah – Free Lunches, Receptions Abound for Utah Legislature

Salt Lake Tribune – Lee Davidson | Published: 3/3/2014

While events featuring free food remain a popular way to attract Utah lawmakers to hear lobbying pitches, they appear to be changing. The number of free lunches, which are expensive for sponsors, dropped by nearly half this year. Less-costly receptions nearly doubled. Still, special interests do not see free “wining and dining” disappearing any time soon. That is too bad, say groups who cannot afford that style of lobbying.

Virginia – Va. Moves to Tighten Ethics Rules, But Not Too Much

Washington Post – Michael Laris | Published: 3/1/2014

The Virginia House and Senate have passed different bills that address ethics reform. They will work on a compromise as the legislative session draws to a close, but neither bill addresses key loopholes. Lawmakers said it was more difficult than they expected to make far-reaching changes, in part because as they got into the details, they became concerned that imposing tough provisions could end up inadvertently criminalizing their own honest mistakes.

Wisconsin – Wisconsin Senator Seeks to Allow In-Session Lobbyist Checks

Milwaukee Journal Sentinel – Patrick Marley | Published: 3/4/2014

Recently introduced bills in Wisconsin would exempt political groups behind issue ads from disclosing donors and allow lobbyists to funnel donations to candidates. Senate Bill 655 would allow lobbyists to provide contributions on behalf of others to elected officials at any time. The bill also would move up the date on which lobbyists can personally give campaign contributions from June 1 to April 15 of election years.

State and Federal Communications produces a weekly summary of national news, offering more than 80 articles per week focused on ethics, lobbying, and campaign finance.

News You Can Use is a news service provided at no charge only to clients of our online Executive Source Guides, or ALERTS™ consulting clients.

The Senate is considering campaign finance bills to narrow reporting requirements of advocacy groups and widen the ability of lobbyists to provide campaign contributions. Senate Bill 654 would further distinguish non-reportable “issue advocacy” from reportable “candidate advocacy.”

Briefly in 2010, the Government Accountability Board (GAB) used its own discretion to classify campaign activity until both liberal and conservative groups filed lawsuits.

Senate Bill 655 allows a lobbyist to deliver political contributions at any time and allows for lobbyists to make personal contributions as early as April 15 of a general election year. Currently, lobbyists are prohibited from delivering contributions during a legislative session and must wait till June 1 to personally make contributions.

Lobbying

“K Street gears up for Hillary” by Kevin Bogardus in The Hill.

“Groups Try to Mute the Comcast Lobby | K Street Files” by Kate Ackley in Roll Call.

Louisiana: “Former Jindal aide Rainwater looks to lobbying, consulting” by Michelle Millhollon in The Advocate.

New Jersey: “Lobbying expenditures climbed over $60 million in 2013, report finds” in PolitickerNJ.

Campaign Finance

“New Challenges to Campaign Finance Regulation” opinion piece by David Friedman in The Stanford Daily.

New York: “Women stump for campaign finance reform” by Casey Seiler in the Capitol Confidential.

Wisconsin: “Walker says he’s not focused on Republican bills affecting campaign donations, spending” by Scott Bauer (Associated Press) in The Republic.

Ethics

California: “Senate Democrats proposing revamp of campaign, gift laws” by Patrick McGreevy in the Los Angeles Times.

Campaigns and Elections

“Thought the Senate map was set?” by Jessica Taylor in The Hill.

“2014 Governors Races: A Look at the Too-Close-to-Call Contests” by Louis Jacobson in Governing.

South Carolina: “Cheers! SC Bill Aims to Lift Booze Ban on Election Day” by Drew MacKenzie in Newsmax.

Procurement

“Bringing Innovation to Procurement” by Justin Brown in Government Technology.

Lobbying

“Lobbying World” in The Hill.

Kentucky: “Ethics Reporter: First month of session sees one-month record of $1.9 million for lobbyists” by the Kentucky Ethics Commission in KY Forward.

Wisconsin: “Wisconsin senator seeks to allow in-session lobbyist checks” by Patrick Marley in the Journal Sentinel.

Campaign Finance

Illinois: “Rauner’s $6 million sets record in Illinois governor race” by Rick Pearson in the Chicago Tribune.

Wisconsin: “State Senators introduce campaign finance legislation” by Andrew Hahn in The Daily Cardinal.

Ethics

“Former FEC General Counsel Retruns to Battle” by Kent Cooper in Roll Call.

California: “Scandals cost California Democrats supermajority in Senate” by Jessica Calefati in the Contra Costa Times.

Elections

“Texas 2014 Primary Election Results” in the Texas Tribune.

A group billing itself as “the first nationwide super PAC focused on electing Democratic state legislators and other political leaders to build middle-class economic security” is challenging Pennsylvania’s ban on corporate and labor union contributions. General Majority PAC filed suit in the U.S. District Court for the Middle District of Pennsylvania in late February, alleging the prohibition on PACs from receiving corporate and labor union contributions to make independent expenditures chills its free speech rights and is contrary to the U.S. Supreme Court’s Citizens United ruling.

Given the short amount of time until Pennsylvania’s primary election, the group also requested an injunction to immediately suspend the law so it may begin operating in Pennsylvania as soon as possible. General Majority made clear it intends to register as a Pennsylvania PAC upon reaching the state’s registration threshold, and will not coordinate with any state candidates or party committees.

Lobbying

“Bottom Line” in The Hill.

“Wyden’s rise starts K Street bidding war” by Megan R. Wilson and Kevin Bogardus in The Hill.

“Hollywood’s Top Lobbying Group Is Sponsoring CPAC” by Nikki Schwab in U.S. News & World Report.

Campaign Finance

Florida: “More Ads in Florida Push Independent Expenditures above $7.5 million” by Kent Cooper in Roll Call.

Ethics

California: “California lawmakers report meals, sports tickets, other gifts” by Patrick McGreevy in the Los Angeles Times.

New Jersey: “Port Authority chairman hit with ethics complaint by NJ Working Families Alliance” by Steve Strunsky in The Star-Ledger.

Vermont: “Vermont House working on ethics rules” by Nancy Remsen in the Burlington Free Press.

Congress

“Snow Delays Senate Votes for Another Day” by Niels Lesniewski in Roll Call.

State Legislative Sessions

Florida: “A viewers’ guide to the 2014 Florida Legislature session” by Steve Bousquet in the Miami Herald.

Kansas: “Kansas lawmakers taking a break from session” by The Associated Press on KAKE News.

Utah: “Nine days remain in productive legislative session” by Billy Hextra in the Daily Herald.

Wyoming: “Bill on special legislative session to deal with fallout from Supreme Court decision dies” by Bob Moen (Associated Press) in The Republic.

Elections

Texas: “What to Watch in the Texas Primary” by Ross Ramsey in Governing.

The Ethics Commission will be holding a series of workshops over the next few months to receive input concerning proposed amendments to campaign laws. The suggested reforms include classifying the duplication of candidates’ campaign materials as nonmonetary contributions instead of independent expenditures.

In addition, the commission seeks to curb the practice of making independent expenditures on credit so as to delay disclosure of donors who verbally agree to pay the debt after the election.

Commission staff researched and produced a report to be discussed at the next commission meeting on Thursday, March 13, 2014. The report is available here.

Lobbying

“Lobby shop strikes gold with Wyden hire” by Megan R. Wilson in The Hill.

“Comcast now a $19 million lobbying powerhouse” by Todd Shields, Stephanie Green and Laura Litvan (Bloomberg News) in the Chicago Tribune.

“David L. Cohen quite influential without being a ʹlobbyistʹ” by Jonathan Tamari in The Inquirer.

“Shadow lobbying spends three times more than traditional lobbying” in the AG Beat.

Massachusetts: “Lobbying Spending Increases Dramatically” by The Associated Press in WGBH.

Massachusetts: “Review: Mass. health lobby spent $100M since 2007” by Steve LeBlanc (Associated Press) in the Boston Globe.

New Mexico: “New Mexico Debates New Lobbyist Rules” by Liz Farmer in Governing.

Campaign Finance

“Supreme Court disrupted by protest over campaign finance ruling” by Al Kamen in The Washington Post.

“Hidden camera footage surfaces of Supreme Court debate” by Mario Trujillo in The Hill.

“Coming Soon from SCOTUS: Campaign Finance and Affirmative Action” by Damon root in Reason.

“Facing 140,000 Comments, Treasury Braces for IRS Hearing, Legal Fight” by Eliza Newlin Carney in Roll Call.

California: “Identity of Campaign Finance Scandal Informant Revealed” by Wendy fry on NBC 7 San Diego News.

Florida: “Why this Florida congressional race is one of the most expensive ever” by Amber Phillips in The Denver Post.

Florida: “Political campaign fundraisers lose the frills” by James L. Rosica in The Tampa Tribune.

Missouri: “Former St. Louis alderman fined for using campaign funds for personal use” by Nicholas J.C. Pistor in the St. Louis Post-Dispatch.

Pennsylvania: “D.C.-based PAC sues, saying Pa. can’t ban campaign contributions” by Kate Giammarise in the Pittsburgh Post-Gazette.

Texas: “Interactive: Campaign Finance Viewer for March Primaries” by Ryan Murphy and Travis Swicegood in The Texas Tribune.

The Feds

“Washington-Area Federal Offices Are Closed Monday” by Kellie Lunney in Government Executive.

Ethics

Colorado: “Critics see proposed ethics commission cure as bad medicine” by John Tomasic and Tessa Cheek in the Colorado Independent.

Colorado: “Director Jane Feldman leaves Colorado Ethics Commission” by Lynn Bartels in The Denver Post.

South Carolina: “Ethics reform bill heads back to SC House without changes to legislative oversight of members” by The Associated Press in The Republic.