A Federal Court has ruled Montana’s contribution limits are unconstitutional under the First Amendment.

On October 3, 2012, the U.S. District Court for the District of Montana, issuing a decision in Lair v. Murry, found the contribution limits in Montana Code Annotated §13-37-216 “prevent candidates from ‘amassing the resources necessary for effective campaign advocacy.’”

The Court has enjoined the state from enforcing the provisions of the code relating to limiting political contributions.

Montana Attorney General Steve Bullock issued the following statement: “In declaring our campaign contribution limits unconstitutional, a federal judge has effectively put Montana’s elections up for auction to the highest bidder. My office will aggressively pursue all legal remedies available to overturn this decision, including filing an emergency stay before the U.S. 9th Circuit of Appeals —the court which upheld Montana’s contribution limits just a decade ago.”

Q. I am interested in making contributions to state candidates in the upcoming elections. Does the fact that I’m a registered lobbyist affect my ability to contribute?

A. In certain states, being a registered lobbyist does impact your ability to give to a political candidate, ranging from a total ban on political activity, to simply having to report the contributions on your periodic reports.

In Arizona, Colorado, Iowa, Kansas, New Mexico, and Oklahoma, lobbyists may not make contributions to lawmakers while the state legislature is in session. Fortunately, in the context of the upcoming elections, most states have adjourned sine die. In California, a lobbyist may not make a contribution to a candidate for any office for which the person is registered to lobby. Because most lobbyists are registered to communicate with the legislature, this ends up being nearly a total ban on contributions to legislators. Similarly, in Kentucky, a lobbyist registered with the legislative branch may not make a contribution to a lawmaker. In Alaska, a lobbyist is only allowed to contribute to candidates for office within his or her voting district.

There are several states in which lobbyists are allowed to make contributions, but must disclose the donations on their lobbyist reports. Massachusetts, New Hampshire, New Mexico, Rhode Island, and Washington are examples.

Some states have unique provisions for politically-active lobbyists. In Pennsylvania, for instance, a lobbyist who makes political contributions must register and report in the same manner as PACs. Minnesota lobbyists must include their registration numbers in the memo section of campaign contribution checks.

If you or a member of your team would like to make a campaign contribution in a state in which you are registered, please contact a member of the State and Federal Communications Compliance Department for fact-specific guidance.

(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.

Campaign Finance

“Freshmen rake in cash through PACs” by Kevin Bogardus and Megan R. Wilson in The Hill.

Connecticut: “When a candidate’s spouse is powerful, the goal of a campaign donation can be … complicated” by Ana Radelot in the CT Mirror.

Minnesota: “Campaign finance board rules Minnesota Majority’s Dan McGrath did not break lobbying rules” by Paul Demko in Politics in Minnesota.

New York: “NY progressives push for public campaign finances” by Michael Gormley in Bloomberg News.

New York: “Campaign finance firepower gathers” by Jimmy Vielkind in the Capitol Confidential.

Lobbying

“Activists Press Corporations to Cut Ties With Presidential Debate Commission” by Janie Lorber in Roll Call.

“Wis. lawmakers sued over emails with conservative group” by The Associated Press in the Chicago Tribune.

Ethics

California: “L.A. Councilman Richard Alarcon and wife ordered to stand trial” by Catherine Saillant in the Los Angeles Times.

Illinois: “Emanuel Revamps City Hall Ethics Board” by Hal Dardick in the Chicago Tribune.

Campaigns and elections

“Obama, on track to raise $1 billion, came close to that in 2008”  by Matea Gold in the Los Angeles Times.

“Jim Lehrer on criticism of his recurring debate-moderator role: ‘It’s a rough, rough world’” by Andrew Beaujon in Poynter.org.

“Daily Ad Track” by Abby Livingston in Roll Call.

“Zac Efron, Leonardo DiCaprio and Selena Gomez all want you to vote for stuff” by Jen Chaney in the Washington Post.

Government Tech and Social Media

“For the Campaigns, Online Debate Response is All About Mobile” by Nick Judd in TechPresident.

“Social media: On the outside looking in at presidential debates” in Politics in Minnesota.

“Code for America Reveals 2013 Partner Cities and Counties” by Sarah Rich in Government Technology.

Nevada Secretary of State Ross Miller has proposed a bill draft resolution for the 2013 legislature to increase the accountability of candidates and public officials.

Secretary Miller advocates changes to the current campaign finance laws to clarify who is required to disclose contributions and expenditures when making independent expenditures or electioneering communications. Other changes put forth include requiring reporting within 72 hours for contributions received in excess of $1000, allowing the Secretary of State’s office to seek greater authority and greater penalties for campaign finance violations, and requiring every expense made from a candidate’s campaign account to be report.

Additionally, the Secretary is proposing an overhaul of the law regarding gifts given to public officials in order to “significantly restrict the ability of candidates and public officials to receive ‘gifts’ from donors who may pose a conflict of interest”, according to a press release from the Secretary’s office.

Assemblymen Marcus Conklin and Pat Hickey, and senate candidate Sheila Leslie, have expressed interest in the ideas. The Nevada Legislature is scheduled to begin its next session on February 4, 2013.

A federal judge has issued an order to the state supreme court seeking clarification of the state’s campaign finance laws. The order arises from a suit filed against the secretary of state by the Coalition for Secular Government (CSG), alleging that certain provisions of the Fair Campaign Practices Act are invalid under the First Amendment. CSG plans to raise funds that will go toward updating and disseminating a policy paper that may address ballot issues, activities that may require it to register as an issue committee and disclose its donors under Colorado law.

The judge requested the Colorado Supreme Court to clarify:

• Whether the position paper expressly advocates for a ballot issue or question such that it falls within the definition of expenditure in the Colorado Constitution;

• If it does qualify as a ballot issue expenditure, is it eligible for the exemptions allowed for news items, editorials, and other similar writings;

• Whether the policy paper is a “written or broadcast communication” that would categorize CSG as an issue committee, and if not, did it become one when CSG posted the paper to its blog or Facebook page; and

• What the monetary threshold is that would require an issue committee to register.

With the November elections on the horizon, a number of lawsuits have been filed by potential campaign contributors seeking to determine the constitutionality of their states’ campaign finance laws. The following states have seen campaign finance laws invalidated in August.

In Nebraska, the state supreme court held the Campaign Finance Limitation Act (CFLA) unconstitutional. The CFLA allowed candidates participating in the public financing program to receive additional public funds if their privately-funded opponents exceeded certain spending limits. The court also struck down the CFLA’s aggregate contribution limits and rules governing acceptance of contributions from independent groups after the court determined the public financing portion of the CFLA was not severable from the rest of the law.

The Sixth Circuit Court of Appeals ruled Ohio’s ban on political contributions to candidates for state attorney general or county prosecutor from doctors who treat Medicaid patients unconstitutional. The provision was designed to prevent fraud by banning contributions to those officials who prosecute Medicaid fraud, but the court held the prohibition a violation of doctors’ free speech rights.

In Florida, a federal judge issued a temporary injunction blocking enforcement of Florida’s $100 per election contribution limit for persons 17 and under, holding the law an unconstitutional infringement on free speech rights. Florida allows persons aged 18 and over to contribute $500 per election.

A federal judge in West Virginia granted a preliminary injunction to prevent enforcement of West Virginia’s $1,000-per-election limit on contributions to independent expenditure PACs, on the grounds that the limit chills First Amendment free speech rights. The injunction will remain in place pending a final resolution of the case.

Finally, in Colorado, a federal judge invalidated several campaign finance rule changes made by the secretary of state. The rules struck down include one providing that organizations are only subject to reporting requirements if more than 30 percent of their spending was for or against a ballot issue, and one limiting penalties for certain campaign finance violations. The secretary of state’s rule defining electioneering communications was upheld. Two additional rules await a decision.

Lobbying

Via Eric Brown’s Political Activity Law blog – Missouri:“Mo. Sen. candidate wants ban on all lobbyist gifts to state lawmakers” by Marshall Griffin in St. Louis Public Radio.

Wisconsin: “Former Assembly speaker now a lobbyist” by Jason Stein in the Milwaukee Journal Sentinel.

Campaign Finance

“Rules of the Game: Shining a Light on Political ‘Dark Money‘” by Eliza Newlin Carney in Roll Call.

Arizona: “Probe into Horne’s campaign finances leads to report over alleged hit-and-run” by Howard Fischer in the East Valley Tribune.

Social Media

“Mashable Special Report: How Digital Is Transforming Politics” by Josh Catone in Mashable.

“How the Internet will Change the Government” by Henry Brown in Govloop.

The United States Supreme Court has decided not to hear a case involving Maine’s political contribution disclosure, upholding the law. The National Organization for Marriage (NOM) had appealed to the country’s highest court after an appeals court ruled that Maine’s law regarding ballot issue committees is constitutional.

The law states that groups who spend more than $5,000 to influence ballot questions must register with the state ethics commission. Once registered, organizations must identify, in filed campaign finance reports, any donors who contributed more than $100.

The ethics commission, due to the ongoing legal battle, has not made a final determination on whether NOM is actually a ballot issue committee. The commission hopes to have a final answer on that issue in the coming months.

Campaign Finance

“‘Dark money’ flowing back to issue ads” by Kevin Bogardus in The Hill.

Arizona:  “Ex-aide charged with stealing Ariz. campaign cash” by The Associated Press in Tucson News Now.

California: “California voters rejecting change to campaign financing” by The Associated Press in the Mercury News.

Iowa: “Charges dropped in Iowa campaign contribution case” in the Muscatine Journal.

Texas: “PAC wants state approval for text donations” by Dave Nyczepir in Campaigns & Elections.

Lobbying

“New report outlines N.J. lawmakers’ use of controversial ALEC group” by Salvador Rizzo in the Star-Ledger.

Ethics

Pennsylvania: “In Pa., Where’s the Payback?” by Craig R. McCoy in the Philadelphia Inquirer.

Rhode Island: “Ethics commission sets hearing on disclosure of paid trips for officials” by Philip Marcelo in the Providence Journal.

Technology and Social Media

“What Facebook’s Planning for the First Romney-Obama Debate” by Michael Catalini in the National Journal.

New Jersey: “New Jersey Mulls Ad-Powered Websites” in Government Technology.

Kentucky:  “Ky. house candidate admits error in email” by The Associated Press in the Bangor Daily News.

Elections

“State probe looms for firm registering GOP voters” by Elisabeth Arriero in the Charlotte Observer.

Lobbying

“K Street Files: Ogilvy Government Relations Nabs Two GOPers” by Kate Ackley in Roll Call.

“Does corporate lobbying benefit society?” by Moshe Silver in Fortune.

Kentucky:  “New spending record could be set for lobbying” by The Associated Press in the Bowling Green Daily News.

Campaign Finance

“Super PAC Assails Super PACs, Big Money” by Eliza Newlin Carney in Roll Call.

“Friend of U.S. Rep. Vern Buchanan pleads guilty to campaign violations” by Susan Taylor Martin in the Tampa Bay Times.

Washington:  “Owen is fined over his tardy campaign finance reports” by Mike Baker in the Seattle Times.

Elections

“8-time felon running for seat in Michigan House” by John Wisely in the Detroit Free Press.

Social Media

“Social media have big debate plans” by Steve Friess in Politico.

National:

Aflac and Chubb Join Ranks of Companies Expanding Disclosure

Federal:

Judge Backs Obama Ban on Lobbyists Serving on Federal Advisory Panels

Super PACs Get New Use – As Lobbying Arms on Hill

From the States and Municipalities:

Alabama

Judge Sentences Gambling Lobbyist Pouncy to 3 Years Probation

California

Gov. Jerry Brown Signs Bill to Modernize Campaign Disclosure Web Site

Georgia

Deal Lawyer Goes After Accuser for Legal Fees

Maryland

Bill Before City Council Aims to Close ‘Gaps’ in Ethics Code

Massachusetts

Goldman Sachs Will Pay $12 Million in SEC ‘Pay-to-Play’ Case

Minnesota

Catholics Asked to Pay for Marriage Vote Ads

North Carolina

Ethics Guidance on Legislative Staffers and Lobbyists

South Carolina

Harrell Offers No Details on Self-Reimbursement of $325,000 from Campaign Funds

Washington

Lobbyists, Staff Aided Lt. Gov. Owen’s Nonprofit

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.

Lobbying

“Trade groups fear gift ban after the election” by Kevin Bogardus in The Hill.

Florida: “Senate president scolds lobbyists who opposed his candidates” by Mary Ellen Klas in the Tampa Bay Times.

Campaign Finance, Campaigns and Elections

“How the presidential campaigns are spending money, in one chart” by Sean Sullivan in the Washington Post.

“‘Super PACs’ Finally a Draw for Democrats” by Nicholas Confessore in the New York Times.

“Money trouble: Barack Obama faces a cash gap in the final weeks of the campaign” in The Economist.

“Attentive.ly, a Tool to Mine Your Supporters’ Minds, Just Launched” by Miranda Neubauer in TechPresident.

Pay-toPlay

“Goldman Sachs Will Pay $14.4 Million to Settle Pay-to-Play Cases” by Joshua Gallu, Michael McDonald, and Christine Harper in Bloomberg’s Businessweek.

Ethics

“Watchdog Groups Urge House Leaders to Fill Vacancies on Ethics Board” by Janie Lorber in Roll Call.

California: “After shoplifting plea, lawmaker seeks another office” by Michael J. Mishak in the Los Angeles Times.

Maryland: “Alston’s Maryland law license lifted for ethical violations” by David Hill in the Washington Times.

Procurement

“New federal contracting jobs site launches” by Kedar Pavgi in Government Executive.

Lobbying

“K Street Follows Lawmakers Outside the Beltway” by Kate Ackley and Janie Lorber in Roll Call.

“Super PACs get new use — as lobbying arms on Hill” by Dave Levinthal in Politico.

“Report: D.C. lobbyist on ‘The Bachelor’” by Patrick Gavin in Politico.

“Federal court tosses out lawsuit challenging Obama’s lobbyist ban” by Kevin Bogardus in The Hill.

“Judge sentences gambling lobbyist Jennifer Pouncy to 3 years probation” by Sebastian Kitchen in the Montgomery Advertiser.

Campaign Finance

“Report ranks corporate political openness” by Dave Levinthal in Politico.

Ethics

“N.J. Democrats ask ethics commission to look into Christie’s use of GOP video at town hall” by Jenna Portnoy in the Star-Ledger.

Elections and Political Campaigns

“Secretaries of State Still Juggling Politics, Elections” by Louis Jacobson in Governing.

“New voter laws could delay outcome of close elections as states scrutinize provisional ballots” by The Associated Press in the Washington Post.

“U.S. Supreme Court Lets West Virginia Voting Maps Stand” in Governing.

Social Media

“Cities and Counties Try Facebook for Government” by Hilton Collins in Government Technology.

Today the FEC posted an article answering some questions about political contributions made and received by text messaging.

The article can be found here.