The New York City Campaign Finance Board scored a huge win in the courts Friday. Republican mayoral candidate George McDonald had sued the city in hopes of eliminating the city’s strict contribution limits and attempt to bring them in line with the state’s limits. However, the Manhattan court said the city’s contribution limits are legal and reasonable to keep money from influencing elections.

Judge Kathryn Freed, who gave the decision for the court, held, “The court finds that the establishment of uniform limitations on both participating and non-participating candidates is reasonably related and calculated to achieve the goals of reducing the influence of ‘wealthy special interests’ over local elections, and increasing public participation and public confidence in those elections, is well within the powers granted to the City to protect the welfare and well being of its citizens.”

McDonald recently announced that he would join the voluntary public financing system and would conform to the current contribution limits, but promised to keep his fight up in court. McDonald still has the option of appealing this decision, but declined to say whether he would. He was disheartened in the entries process, saying “It’s disappointing that it took 147 days to ‘just say no’ in long form.”

McDonald is the underdog in a three-way battle for the Republican nomination with Joe Lhota and John Catsimatidis. The primary election for the mayor’s office, and all other city offices, is September 10.

The Hawaii State Legislature bid aloha Thursday as it adjourned for the year. In total, the Legislature introduced 2,872 bills and passed 293 of them. Those 293 passed bills will now head to Governor Neil Abercrombie’s desk for his signature.

Among the most important bills passed, was a campaign finance bill aimed at increasing transparency in the campaigning process. House Bill 1147 was passed Thursday night and is now headed to Governor Abercrombie’s desk. Under the bill, non-candidate committees only making independent expenditures will be required to list the names of the top three contributors on all advertisements broadcasted, televised, circulated, or published, which includes posting on the Internet. Originally, the bill required the top five contributors to be disclosed, but it was amended to only include the top three.

Still, Hawaii lawmakers were very pleased with the passage of this particular bill. Representative Chris Lee, the author of the bill, said, “All the political ads they see on TV that are sponsored by these loose organizations with no real background – these folks will have to disclose who the funders actually are so that people can actually go to the ballot box informed about what they’re about to vote on.”

Senate President Donna Mercado Kim added, “We should have transparency that people are free to go ahead and have their First Amendment, if it’s by way of donation and contributing, but we should be able to know who’s doing it.”

Governor Abercrombie has 45 days, excluding weekends and holidays, to sign the bill and if he does, the bill will become effective on November 5, 2014.

The Legislature adjourned sine die early Saturday, May 4, 2013. During this longest-ever legislative session, Governor Jack Dalrymple signed two campaign finance bills to establish registration and reporting requirements for independent expenditures.

Senate Bill 2255 and Senate Bill 2299 expand definitions and reporting requirements for campaign entities making independent expenditures in North Dakota elections. Federal PACs making independent expenditures in excess of $200 in state races will be required to file a copy of the federal report detailing the expenditures.

The bills become effective August 1, 2013.

Photo of the North Dakota State Capitol by Bobak Ha’Eri in Wikipedia.

Lobbying

California: “California lobbying firms make $40.1M in first quarter” by Kathy Robertson in the Sacramento Business Journal.

Illinois: “Evaluating Municipal Lobbying Data: Chicago” by Alisha Green in the Sunlight Foundation blog.

Campaign Finance

“Billionaire’s son pushes for campaign-finance overhaul” by Brian Tumulty in USA Today.

Arizona: “Horne campaign finance case puts contribution limits at risk” by Howard Fischer in the Arizona Daily Sun.

Florida: “Ramba: Campaign-finance reform will just shuffle paper work” by Aaron Deslatte in the Orlando Sentinel.

Missouri:

Missouri: “Senate bill would limit campaign contributions” by Jonathan Shorman in the News-Leader.

New York: “WATCH LIVE: Senate IDC hosts hearing on campaign-finance reform” by Jon Campbell in Politics on the Hudson.

Ethics

Connecticut: “Malloy’s trip on People Magazine’s dime raises questions” by Ken Dixon in the Connecticut Post.

North Carolina: “NC elections board gets new chair, exec director” in the Daily Dispatch.

New York: “Director leaving high-profile NY ethics commission” on CBS Albany News.

Pennsylvania: “Gov. Corbett discloses gifts, free travel for 2012” by The Associated Press in the Patriot-News.

Pennsylvania: “9 members of Congress from Pa. cited in nepotism report” by Melissa Daniels in The Reporter.

From the State Legislatures

“Elections—and Rules—Have Consequences” by Karen Shanton in NCSL’s The Thicket.

Indiana: “Indiana Governor Mike Pence doesn’t rule out vetoes of legislative bills” in the Courier-Journal.

Louisiana: “House committee shoots down effort at term limits for statewide elected officials” by Jeff Adelson in the Times-Picayune.

Government Tech and Social Media

“YouTube goes to Washington” by Seth Rosenblatt in CNET News.

Two major bills passed by the Florida Legislature were signed by Governor Rick Scott late on Wednesday, May 1, 2013. The bills make significant changes to the state’s ethics and campaign finance laws.

Senate Bill 2, the state’s ethics overhaul, becomes effective immediately upon becoming a law.

House Bill 569, the campaign finance bill, takes effect November 1, 2013, except for the provisions eliminating committees of continuous existence (CCEs). CCEs are prohibited from accepting contributions after August 1, 2013, and their certification will be revoked as of September 30, 2013. Additionally, the bill requires the Division of Elections to present a proposal for mandatory electronic filing to the legislature by December 1, 2013.

For previous coverage about this legislation, see “Florida Legislature Passes Campaign Finance Bill” and “Florida Ethics Bill Heads to Governor Scott” by Jennifer Zona.

The House has passed a bill to overhaul ethics laws, including campaign finance and lobbying. House Bill 3945 creates the Joint Committee on Ethics and the Public Integrity Unit to investigate complaints and replace the separate House and Senate ethics committees.

The bill includes new reporting requirements for campaign contributions just before an election and extends lobbyist registration and reporting for individuals lobbying local governments and school boards.

A final approval on Wednesday, May 1, 2013, allows the bill to meet the crossover deadline for Senate consideration. If sent any later, the bill would need a two-thirds vote for Senate passage.

Lobbying

“Report: Obama To Pick Cable and Wireless Industry Lobbyist To Chair FCC” by Sarah Lai Stirland in TechPresident.

“Bottom Line” in The Hill.

California: “Lobbying intensifies on immigration reform” by Elizabeth Aguilera in the San Diego Union-Tribune.

Delaware: “Common Cause of Delaware cites lobbying concerns in study” by Craig Anderson in the Delaware State News.

Michigan: “Nell Kuhnmuench ‘probably the best lobbyist in Lansing’” by Kristen M. Daum in Greater Lansing Woman.

Campaign Finance

“Springtime for disclosure” by Jonathan Backer in The Hill.

“113th Congress Freshmen Take $6.5 Million in PAC Money During First Three Months” by Kent Cooper in Roll Call’s Political Moneyline.

“‘Too Much Money in Politics’” by Kimberly A. Strassel in the Wall Street Journal.

Montana: “Montana legislative leaders to interview 5 for political practices commissioner” by Charles S. Johnson in the Missoulian.

Ethics

North Carolina: “New members of NC elections board set to meet” by Michael Biesecker (Associated Press) in the Jacksonville Daily News.

Pennsylvania: “Pa. lawmakers, other public officials disclose gifts, travel, other freebies in annual filing” by Mark Scolforo (Associated Press) in The Republic.

Texas: “Disclosure Bills Get Little Love From Top Leaders” by Emily Ramshaw in the Texas Tribune.

From the State Legislatures

NCSL Members Mobile App on the NCSL website.

Nevada: “Nevada Legislature lagging in number of approved bills” by Ed Vogel in the Las Vegas Review-Journal.

Redistricting

Arizona: “Brewer OKs extra redistricting commission funds” by The Associated Press in Arizona Capitol Times.

Kentucky: “Beshear hopes to call special session to deal with legislative redistricting” by Jack Brammer and Beth Musgrave in the Lexington Herald-Leader.

Government Tech and Social Media

“NYC BigApps Refines the Civic Hackathon” by Sam Roudman in TechPresident.

Lobbying

“Ethics Group CREW Bails on Lobbying Efforts” by Kent Cooper in Roll Call’s Political Moneyline.

Arizona: “Action lacking despite opportunities to improve Arizona’s lobbyist reporting system” by Evan Wyloge and Hank Stephenson in the Arizona Capitol Times.

Florida: “NFL Commissioner Roger Goodell lobbies lawmakers in Tallahassee to back Dolphins stadium renovation bill” by Toluse Olorunnipa and Charles Rabin in the Miami Herald.

Michigan: “State Rep. Andy Schor intros bills to adjust term limits, restrict post-office lobbying by lawmakers” by Angela Wittrock in Michigan Live.

Utah:”Loopholes allow lobbyist spending to vanish from reports by Lee Davidson” in the Salt Lake Tribune.

Campaign Finance

“Why don’t Americans care more about campaign finance reform?” by Juliet Eilperin and Scott Clement in the Washington Post.

“Bipartisan Campaign Finance Bill Aims to ‘Follow the Money’” by Chris Vest in Associations Now.

Maine: “Senate backs resolutions supporting campaign finance, immigration reforms” by Matthew Stone in the Bangor Daily News.

Ethics

“Latest ethics proposal rejected by AG” by John Lyon in the Arkansas News.

New York: “NY ethics board proposes changes to gifts, disclosure requirements by some lobbying groups” by The Associated Press in The Republic.

South Carolina: “Fate of ethics bill to be determined Tuesday in S.C. legislature” by Kirk Brown in the Anderson Independent Mail.

Procurement

“7 Ideas for the Future of Local Government” by Steve Ressler in Government Technology.

The New York City Campaign Finance Board scored a decisive court victory when a court ruled in favor of the city’s campaign finance laws. United States District Court Judge Laura Taylor Swain upheld the city’s provisions limiting the amount of public funds available to candidates who do not face meaningful competition.

This provision, dubbed the “sure winners” provisions by the Campaign Finance Board, was under attack in Ognibene v. Parkes, a suit filed in 2008. In a non-competitive race, the city is allowed to withhold public funds from a candidate. The candidate may appeal that decision, claiming they face a significant opposition based on a set of objective criteria.

Examples of the criteria used include the opponent’s endorsements and the media coverage of the opponent. The court did say that the city could not use the opponent’s financial activity as criteria for the appeals process, but overall it was a clear victory for the Campaign Finance Board.

Amy Loprest, executive director of the Campaign Finance Board, said “This victory allows the CFB to hold on to an important tool for maintaining public confidence in the city’s campaign finance program.”

Neither party has any intentions of appealing the District Court’s ruling, effectively ending the suit after nearly five years.

Photo of Manhattan courtesy of AngMoKio on Wikipedia.

Lobbying

“Social media emerge as players in state capitols” by Brad Cooper in the Kansas City Star.

Hawaii: “Has Hawaii Given Up On Lobbying Congress?” by Kery Murakami in Honolulu Civil Beat.

Campaign Finance

California: “Interactive graphic lets voters follow the money in mayor’s race” by David Zahniser, Maloy Moore and Anthony Pesce in the Los Angeles Times.

California: “California declines to update campaign data online” by Jusy Lin (Associated Press) in the Redding Record Searchlight.

New York: “Public campaign finance debate heats up in Albany” by Jon Campbell in the Journal News.

Ethics

“Tuesday Discussion on the FEC-The Day The Terms of All Commissioners Will Have Expired” by Kent Cooper in Roll Call’s Political Moneyline.

South Carolina: “Bid to reform state ethics draws fire” by Tim Smith in the Greenville News.

South Dakota: “South Dakota lawmakers don’t see conflict of interest problems in the Legislature” by David Montgomery in the Argus Leader.

Government Tech and Social Media

“Open Source Tech is Driving Big Changes in Government” by Joseph Marks and Mark Micheli in Nextgov.

“San Francisco Hires New Chief Information Officer” by Sarah Lai Stirland in TechPresident.

The Massachusetts Office of Campaign & Political Finance (OCPF) is holding a public hearing on May 8 concerning proposed updates to regulations regarding campaign finance disclosure.

The hearing will address revised provisions to the existing code and a new regulatory section “concerning the identification of funding sources for tax exempt and other organizations that raise funds to make contributions or independent expenditures”.

Additional OCPF proposals include addressing the use of a candidate’s legal defense fund, clarifying subvendor reporting requirements, and amending provisions concerning credit and debit card contributions. The draft regulations are available here.

Federal:

FEC Denies Same-Sex Appeal

K Street’s Bounce Proves Elusive

From the States and Municipalities:

Alabama – Barron, Former Aide Indicted

Arkansas – Arkansas House Sends Ethics, Petition Rules to Voters

California – ‘Hacking’ Open Financial Disclosure Data

California – Many Private Interests Were Brown’s Fellow Travelers in China

Florida – Legislators Finish Rewrite of Ethics, Campaign Bill

Illinois – Emanuel Campaign Taking Donations from Hotel Developers with Projects in Works

Iowa – Affidavit Says Bachmann Approved Hidden Payments to Iowa Senator

New Jersey – Campaign Finance Overhaul by N.J. Senate Democrats Would Also Reform Pay-to-Play

North Carolina – Sweepstakes Donor’s Checks to NC Politicians Scrutinized

Texas – Campaign Accounts Help Texas Legislators Pay Staffers

Vermont – Former Lt. Gov. Dubie, RGA Agree to Settle Election Lawsuit with State

Washington – Donate to Sick Lawmakers? Limits Apply to Some Gifts

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.

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The Federal Election Commission (FEC) issued a unanimous Advisory Opinion concluding same-sex couples married under state law are precluded from making joint federal political contributions from an individual bank account.

A same-sex couple married under Massachusetts law sought to make a political contribution to Dan Winslow, a candidate for the United States Senate.

The contribution check included instructions to attribute the contribution separately and equally between both individuals, even though the check was drawn from one of the individual’s bank account.

11 C.F.R. 110.1(i) provides spouses a legal exception to the prohibition on making a contribution in the name of another person. However, the term “spouse” is not defined in the Federal Election Campaign Act of 1971 or the Commission’s regulations.

The Commission relied the Defense of Marriage Act (DOMA) interpretation of spouse referring “only to a person of the opposite sex who is a husband or a wife”.

In AO 2013-02, the FEC concluded DOMA prohibits applying the exception under 11 C.F.R. 110.1(i). The Commission distinguished a contribution made from a joint account, rather than an individual account, in a footnote to the opinion, noting, “Same-sex couples (whether married under state law or not) may as joint account holders make contributions in a manner similar to that afforded spouses under 11 C.F.R. 110.1(i).”

The Commission concluded its analysis and conclusions “may be affected by subsequent developments in the law including, but not limited to, statutes, regulations, advisory opinions, and case law”.

The Florida House and Senate reached a compromise on contribution limits, passing a comprehensive campaign finance bill.

The major changes in the bill include:

• Elimination of committees of continuous existence;
• Requiring weekly reporting by political committees and electioneering communications organizations beginning with the 60th day prior to a primary election and continuing until the 4th day before a general election, and daily reporting beginning with the 10th day before a general election;
• Increasing campaign contribution limits from $500 to $3,000 for a candidate for statewide office or retention as a justice of the state supreme court, and from $500 to $1,000 for a candidate for legislative office, retention as a judge of a district court of appeal, or circuit judge; and
• Elimination of limits on contributions to political committees.

The original bill increased all contribution limits from $500 to $10,000. At the beginning of debate on the bill, House Speaker Will Weatherford tweeted, “today is meet me halfway day.”

While critics argue the bill doesn’t go far enough and too many loopholes remain, Senator Jack Latvala, chairman of the Senate Ethics and Elections Committee, said the goal is transparency. He contends money in politics isn’t going anywhere, so the best the legislature can do is require disclosure.

The bill now awaits action by Governor Rick Scott.