July 7, 2010 •
Greg McNeilly is filing suit in federal court.
A former top Michigan Republican Party official has filed suit in federal court to strike down limits on campaign contributions to state candidates. Greg McNeilly, who served as executive director of the state GOP, says caps on donations to legislative candidates have not been adjusted for inflation since their enactment in 1976, and impose an unconstitutional restraint on his right to back candidates of his choice. McNeilly’s attorney claims Michigan’s contribution limits of $500 for state House candidates and $1,000 for state Senate candidates have lost nearly 75% of their value since 1976, and the result has been to limit the ability of outsiders to mount a credible challenge to incumbent politicians.
July 7, 2010 •
A bill amending the Federal Election Campaign Act of 1971 and the Lobbying Disclosure Act of 1995 has passed the House of Representatives.
H.R. 5609, which passed on a vote of 408-4, prohibits any registered lobbyist whose clients include foreign governments which are found to be sponsors of international terrorism or include other foreign nationals from making contributions and other campaign-related disbursements in elections for public office. The bill moves to the Senate.
June 30, 2010 •
News from the Supreme Court ruling.
The U.S. Supreme Court affirmed without comment a lower court ruling upholding a ban on soft-money contributions to political parties.
From The Hill – “Supreme Court affirms ban on soft money,” by Russell Berman 6-29-2010
June 30, 2010 •
The SEC is expected to vote on proposed rules June 30, 2010.
The Securities and Exchange Commission (SEC) is poised to consider new regulations prohibiting hedge funds and private equity firms from making political contributions to public officials who award public pension fund management contracts. The SEC initially considered an outright ban on what had become known as placement agents: middlemen who solicited government pension funds on behalf of securities firms looking to tap into the $2.4 trillion public retirement fund industry.
After pushback from industry and Congress over the proposed elimination of placement agents, the SEC is instead considering rules regulating improper pay-to-play practices connected to public pension funds. One proposed rule will limit direct and indirect political contributions by investment advisers seeking pension fund contracts.
New penalties for violators for pay-to-play violators are also under consideration. For instance, advisers who make political contributions to an elected official in a position to influence the selection of the adviser would face a two year bar from providing advisory services to a fund. The SEC is expected to vote on the proposed rules June 30, 2010.
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