Q:  I want to make political contributions to a candidate for state assembly.  The limits are per election.  How do I make certain the contribution is attributed to the correct election [primary or general]?  Does it matter when I give the contribution in relation to the election?

A:  In this situation it is important to have a “meeting of the minds” between the contributor and the candidate.  The contributor’s intent should be made clear by either indicating the name of the election on the memo line of the check [e.g., 2012 Primary Election], or including a cover letter with the check, or both.  The cover letter can contain language specifically earmarking the contribution for the intended election.  Using these precautions should prevent the candidate from allocating the contribution to an election different from the one intended by the contributor, thereby resulting in a violation of the per election contribution limits.   It is not unusual for a candidate to file his pre- or post- election reports disclosing aggregate contributions from a donor in violation of the per election limit.  The candidate allocated two or more checks to one election, but the contributor intended one check for the primary and one for the general.

Furthermore, a contributor must be aware of the timing of the contribution.  For instance, in New Jersey, you only have 17 days after an election to make a contribution for that particular election; otherwise the contribution is automatically applied toward the next election, regardless of the contributor’s intent.

You can directly submit questions for this feature, and we will select those most appropriate and answer them here. Send your questions to: marketing@stateandfed.com.

(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.

The overhaul split the commission staff into an administrative division, an investigative division, and a compliance-education division. In addition to these changes, a change in the reporting law has resulted in hundreds of delinquencies by local officials who are filing with the state for the first time. The agency has been required to devote time and resources to contact anyone in arrears by certified mail.

Meanwhile, larger investigations have stalled. Earlier this month the commission dismissed a case filed in 2004 because the statute of limitations had expired. A more recent complaint filed against a lobbyist who failed to timely file or register and who paid for a state official’s travel to Europe is now 10 months old and delayed.

Executive Secretary Holly LaBerge is expected to hire staff auditors and receive assistance from the attorney general’s office to aid prosecutorial efforts.

There are 32 political action committees and political party groups that owe campaign finance fines to the state of Rhode Island, according to a news item in GoLocalProv.com. The fines for the groups amount to more than $40,000, compared to political candidates who owe about one million dollars.

You can find the full story at “PACs & Political Parties Owe Tens of Thousands” by Dan McGowan in GoLocalProv.com. The article lists the groups that owe and details the steps the Rhode Island Board of Elections will be taking in order to collect the fines.

Secretary of State Scott Gessler has issued a notice of proposed rulemaking in regards to the Colorado Secretary of State Rules Concerning Campaign and Political Finance, 8 CCR 1505-6. Gessler has proposed a recodification of the rules in their entirety in an effort to improve organization and readability, clarify existing laws and regulations, and address questions arising under Colorado campaign and political finance laws.

Among the more notable changes, the proposed rules would limit fines for late or incomplete campaign finance reports to no more than $50 a day for 180 days, maximized to $9,000. The rules would also continue to utilize the $5,000 threshold at which issue committees would need to register and report, created by Gessler’s adoption of Campaign and Political Finance Rule 4.27, despite a recent state district court ruling that Gessler did not have the authority to increase the threshold from the constitutionally-mandated figure of $200 despite a finding of the threshold to be too burdensome in the recent Colorado case of Sampson v. Buescher.

A hearing regarding these proposed changes is scheduled for December 15, 2011 from 9:00 a.m. to 12:00 p.m. in the Blue Spruce Conference Room on the second floor of the Secretary of State’s Office.

Federal:

Democratic Groups Stalled on Launch Pad

FEC Permits Small Donor Channeling

Religious Lobbying Groups Multiply on Capitol Hill

South Jersey Congressman Spent $9,000 from Campaign Funds on Donor’s Wedding

From the States and Municipalities:

California

New Chair of Campaign Finance Watchdog Draws Strong Reactions

Connecticut

WFP Director Fined For Lobbying Without Badge

District of Columbia

D.C. Council to Consider Ethics Reform Bill

Illinois

Tony Rezko Sentenced to 10½ Years: Former Blagojevich fundraiser convicted of corruption

Massachusetts

Bump Knocked for Fundraising Letter

Mississippi

Campaigns Downplay Race, but Voters Don’t Follow Suit

Nevada

Trip to Brazil Raises Concerns about Lobbyists’ Access

Pennsylvania

City’s Lobbyist-Disclosure Program to Start in ’12

Washington

Right-Wing PAC Fights Campaign Disclosure

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 U.S. District Court for Northern District of Illinois sentenced Tony Rezko to 10 1/2 years in prison, of which he has served three-and-a-half years.

For the full story:

“Judge sentences Blagojevich fundraiser Rezko to 10½ years, he will get credit for time served” from the Washington Post.

“Top Blagojevich adviser Tony Rezko gets 10½ years” from the Chicago Tribune.

The Alabama Secretary of State’s office has released the 2012 campaign finance filing calendar.

The calendar incorporates the changes enacted by the Alabama Legislature as public acts 2011-687 and 2011-697 including increased frequency of reporting required by political action committees.

Two articles track the increase in religious group lobbying: Politico’s “Study: Religious lobbying soars in D.C.” by MJ Lee, and the Washington Post’s “Religious lobbying groups multiply on Capitol Hill” by Michelle Boorstein.

Catherine Ho reports about law firms contributing to Obama’s campaign in “Law firms dominating campaign contributions to Obama” in the Washington Post.

An editorial in the Post-Standard discusses the state of campaign finance rules in New York: “Campaign Cash: In NY, even lax contribution rules are easy to evade.”

The San Diego Union-Tribune discusses Ann Ravel’s actions at California’s FPPC in “New chair of campaign finance watchdog draws strong reactions” by Will Evans.

Tony Rezko, the fundraiser for former Illinois Governor Rod Blagojevich, will be sentenced today in federal court.

The Chicago Tribune covers the news in “Top Blagojevich adviser Rezko to be sentenced today” by Annie Sweeney.

The Washington Post posted “Ex-Blagojevich fundraiser Rezko to be sentenced, after 2008 trial exposed pay-to-play culture” by the Associated Press.

The Denver District Court has ruled Colorado Secretary of State Scott Gessler did not have the authority to raise contribution thresholds concerning when state issue committees have to register and report their activity.

At issue was Gessler’s adoption of Campaign and Political Finance Rule 4.27, which increased from $200 to $5,000 the threshold at which an issue committee must register and report. The $200 threshold, set by the Colorado Constitution, was found to be too burdensome in the recent Colorado case of Sampson v. Buescher.

The court determined that, despite the conflict, Gessler’s alteration of the constitutionally mandated $200 threshold was an impermissible unilateral alteration of the Colorado Constitution. Gessler plans to appeal the ruling.

The Council of the District of Columbia will soon consider legislation that would establish an independent ethics panel and reduce the amount of money council members can raise to help constituents. Council member Muriel Bowser has crafted draft legislation that seeks to streamline 10 separate reform proposals that have been introduced by council members in the aftermath of several ethics controversies.

The proposal sets up a three-member Board of Ethics and Government Accountability, prohibits lobbyists from offering discounted legal advice to council members, sets limits on how much the mayor and council chairman can accept from donors for transition and inaugural committees, and cuts by half the amount that council members can raise for constituent service funds. The proposal does not impose term limits or prohibit lobbyists from making political contributions as sought by other reform proposals.

National:

Poll: Americans divided on companies that hire lobbyists

Federal:

Administration Officials Double as Obama Campaign Speakers

Corporate Lobbying Is a Very Exclusive Club

Gingrich Said to Be Paid By Freddie Mac to Court Republicans

Obama Administration Extends Review of Lobbyist Gift Ban

From the States and Municipalities:

Alaska

FEC Rejects Miller’s Senate Race Complaint

Arizona

Former Fiesta Bowl Employee Indicted

California

FPPC Sticks with $30,000 Fine for Lobbyist Frank Molina

California

New Gift Rules Would Benefit Legislators Dating Lobbyists

Colorado

Judge Says Gessler’s Campaign Finance Change Unconstitutional

Michigan

No Such Thing as Free Lunch? There Is for State Lawmakers in Lansing

Missouri

Missouri High Court Hears Challenge to 2010 Ethics Law

Nevada

No Vote on Transparency Bill Lets Lobbyists Keep Paying Tab

New Mexico

Gov. Martinez Says Officials and Lobbyists Are Too Cozy

New York

Appeals Court Allows New Trial for Bruno

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 Federal Election Commission (FEC) has issued an advisory opinion approving plans of a for-profit company’s mobile-based financial processing platform to collect and distribute funds to candidates, committees, and PACs.

GivingSphere, which allows individuals to make donations to charitable groups through the internet and mobile devices, requested an opinion about implementing contributions to political entities. Customer funds for contributions are accumulated by rebates earned by purchasing goods from merchants who participate in the GivingSphere affiliate program.

Advisory Opinion 2011-19 allows GivingSphere to transmit its customers’ funds in the form of political contributions. Additionally, the company may sell advertising space to political committees on its website, provide a searchable database of political committees to its customers, and permit political committees to post a ‘badge’ of the GivingSphere on their website.

Because GivingSphere is merely processing contributions, it will not be subject to any reporting requirements. The FEC press release can be found here.

CHARLES COUNTY, MARYLAND: Commissioners made the decision to pass an ethics ordinance required by the state after removing a key amendment Tuesday. The amendment would have included stricter campaign finance and reporting laws.

After debate, the commissioners elected to remove the amendment and take up campaign finance and reporting as a separate piece of legislation in the future. The ordinance, as passed, states that commissioners can only represent the county, prohibits gifts over $20, and requires lobbyist registrations to be filed by January 15th.

All counties, municipalities, and school districts are required by law to pass an ethics ordinance.