U.S. District Court Judge Robert Bryan has issued a preliminary injunction barring the state from enforcing campaign contribution limits with respect to an effort to recall the Pierce County assessor. Washington restricts contributions to recall campaigns to $800 or less, though political parties and their official committees may contribute more.

In his decision Judge Bryan stated “the public interest in upholding free speech and association rights outweighs the interest in continued enforcement of these campaign finance provisions.”

Enforcement of the recall campaign contribution limits is enjoined pending a trial over whether the limits are constitutional.

ALABAMA: The Alabama Democratic Conference has filed a lawsuit against Alabama Attorney General Luther Strange and two district attorneys alleging that a new Alabama law violates the Conference’s first amendment rights by placing restrictions on political contributions.

The new law bans the transfer of money from PACs, 527 groups, and private foundations to other PACs, 527 groups, and private foundations.

The Internal Revenue Service will not pursue its proposed check on the applicability of gift tax contributions to 501(c)(4) organizations. Acknowledging it has limited history or guidance on this issue, the IRS announced it “will not use resources to pursue examinations on this issue. Any future action we take will be prospective and after notice to the public.”

In recent years, 501(c)(4) organizations, which allow for limited disclosure requirements, have taken a more prominent role in the campaign finance landscape.

Federal:

IRS Drops Audits of Political Donors

New Breed of ‘Super PACs,’ Other Independent Groups Could Define 2012 Campaign

From the States and Municipalities:

Alabama

Alabama Democratic Conference Files Lawsuit to Stop New Alabama Law Banning Political Fund Transfers

Arizona

Arizona Conservatives Scramble after Campaign Finance Law’s Defeat

California

Marijuana Lobbyist’s Fundraiser for DA Raises Questions

Veil Drawn on Donors to Latino Caucus-Controlled California Nonprofit

Connecticut

Agent Who Arrested Politicians Now Seeks House Seat

Georgia

Lobby Late Fees Add Up

Illinois

Mayor Rahm Emanuel Proposing New Round of Ethics Reforms

Iowa

Judge Upholds New Iowa Campaign Disclosure Rules

Massachusetts

House Leader Apologizes for Holocaust Remarks

Michigan

Justices Stop Political Gifts Taken at Work

Minnesota

Campaign Board Rejects NOM’s Efforts to Shield Donors in Marriage Battle

Pennsylvania

Lobbying Law on Hold

South Carolina

Lt. Gov. Ard Paying $48,000 Fine

Washington

Ex-Prisons Chief Eldon Vail Says He Resigned Because of an Affair with Subordinate

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.

Jim Sedor is editor of News You Can Use.

By Labor Day, our clients will find 36 additional municipalities included on our website. As they are completed, we will update our postings so you can check out the additional resources.

Right now, we have provided information on lobbying, political contributions, and procurement lobbying for Alexandria, Virginia (my former home) and Tacoma, Washington.

In the future look for additional cities in New York, Arizona, and Michigan.

The Commission will discuss “behested payments” and examine the scenario where a public official’s name is listed on the letterhead of a fundraising letter for a nonprofit organization, but neither the official nor any person on his or her staff acts as an agent to solicit donations on behalf of the official.

The commission will also discuss a proposed regulation regarding the use of text messages to raise funds through low dollar contributions.

Lastly, the commission will be discussing a proposed regulation that would allow terminated committees to receive a refund and legally transfer the refund to a new committee without having to reopen the terminated committee so long as both committees report the transaction.

Information concerning a new meeting date will be provided on the Commission website once the date is determined.

Questions concerning the postponement of the meeting may be directed to Lisa M. Dentler, Confidential Secretary, by calling (404) 463-1980.

The Federal Election Commission issued two advisory opinions today, including one allowing federal candidates to solicit contributions for independent expenditure-only political committees (IEOPC) up to $5,000.

In AO 2011-12 revised draft A, which was approved unanimously by the six commissioners, the FEC held solicitations by federal candidates are restricted to the applicable “limitations, prohibitions, and reporting requirements” of 2 U.S.C. §441i(e)(1)(a). While an IEOPC may accept unlimited contributions, the commission held the law still restricts the contribution amount a federal candidate may solicit. Therefore, although federal officeholders and candidates, and officers of national party committees cannot solicit unlimited contributions for an IEOPC, they may still make solicitations within the monetary strictures of the amended Federal Election Campaign Act of 1971.

The advisory opinion also concluded federal officeholders and candidates, and national party officers, may attend, speak at, and be featured guests at fundraisers held by an IEOPC, even when unlimited contributions are simultaneously being solicited from corporations, individuals, and labor organizations. The federal candidate would have to restrict their personal solicitation at the event to the amounts limited by the law.

A second advisory opinion was also issued granting Viacom a press exemption from reporting expenses as contributions, with some exceptions, for its employee Stephen Colbert’s new political action committee, which Mr. Colbert intends to use a vehicle for commentary on the current state of campaign finance.

In response to the U.S. Supreme Court decision which struck down Arizona’s public funding matching system, West Virginia Secretary of State Natalie Tennant has indicated that West Virginia will review its own public funding program.

West Virginia’s public funding program, approved by lawmakers in 2010, is set to begin with a pilot project involving two state Supreme Court seats up for election in the 2012 general election. West Virginia’s law would give candidates who opt into the program more state money as spending by their opponents or independent expenditures by third parties increased.

Tennant has stated that she plans to meet and discuss this issue with Governor Earl Ray Tomblin and Attorney General Darrell McGraw.

Photo of Natalie Tennant courtesy of Natalie Tennant on Wikipedia.

District of Columbia Councilman Tommy Wells has announced that he will introduce three ethics reform bills to address recent ethical issues raised in the district council.

The Campaign Finance Accountability and Reform Amendment Act of 2011 establishes reporting requirements to the Office of Campaign Finance for contributions and expenditures related to transitions and inaugurations and prohibits the bundling of corporate contributions.

The Campaign Finance Reporting Amendment Act of 2011 alters the financial disclosure reporting schedule to coincide with the new primary election date of the first Tuesday of April in an election year.

The Government Vehicles and Fleet Management Rationalization Amendment Act of 2011 prohibits the procurement of “luxury-class” vehicles and freezes the current fleet size.

At a meeting yesterday, the Federal Election Commission discussed Facebook’s request for a waiver from being required to have disclaimer statements revealing who paid for political ads that appear on its social network.

According to the FEC site, “The Commission discussed and voted on two draft Advisory Opinions but did not reach consensus on either draft. In its request, Facebook asked whether its small, character-limited ads qualify for the ‘small items’ or ‘impracticable’ exceptions from the disclaimer requirements of the Act and Commission regulations.”

According to the FEC, an “impracticable exception does not apply to Facebook’s ads” because Facebook determines the size of the ads itself and is not limited in space by the medium. The commission says there are technological solutions for providing the necessary disclaimers. Citing the California Fair Political Practices Commission‘s regulations regarding ads, the FEC said the solution may be found by using “roll-over displays,” placing disclaimers on landing pages, or by “other technological means.”

The Hill reported today on the issue in: “Both parties back Facebook’s request for waiver on campaign ads” by Gautham Nagesh. As the article points out, “Facebook will continue to sell ads to candidates and campaigns and … [c]andidates such as President Obama have already begun running campaign ads on the ubiquitous social network.”

Here is the FEC page with links to the advisory opinion drafts.

Politico reported today that questions are being raised over whether Google has given President Barack Obama’s re-election campaign  a special advertising deal using a new online advertising program scheduled to debut this fall.

The National Republican Senatorial Committee said it contacted Google when it saw an Obama ad and inquired about creating their own ad with the company. They claim a Google representative told them the Obama campaign received a “special deal” and that they would have to wait for the beta version to participate. Google denies the ad in question was using their new advertising system and said the Obama campaign received no such special deal.

Here is the Politico article: “Google denies special deal for Barack Obama” by Byron Tau and Ben Smith.

A Federal District Court judge has issued an injunction preventing the Federal Election Commission (FEC) from enforcing some campaign contribution limits against a political action committee planning to solicit and accept unlimited contributions.

As a single committee, the National Defense Political Action Committee (NDPAC) intends to contribute directly to candidates and political committees, and to make independent expenditures, separating the funds by using two separate bank accounts. It would maintain the statutory limits on the solicitation of funds used for direct contributions while simultaneously seeking unlimited funds for use in their independent expenditures.

The FEC had been unable to issue a binding resolution to an earlier NDPAC advisory opinion request.

In Carey v. FEC, United States District Judge Rosemary M. Collyer ruled the FEC may not enforce 2 U.S.C. §§ 441a(a)(1)(C) and 441a(a)(3), which outline contribution limits for political committees and candidates, against NDPAC with regard to independent expenditures as long as NDPAC maintains separate bank accounts, proportionally pays related administrative costs, and complies with the applicable monetary limits of each type of contribution.

The FEC maintained NDPAC should establish a second formal committee.

A bill which establishes a cap of $5,000 per calendar month on civil penalties for failure to file statements or include required information has passed the Oregon House Committee on Rules.

Senate Bill 270 removes “unfulfilled pledge, subscription, agreement or promise to make contribution” from the definition of contribution.

Additionally, the bill, which passed the Senate in March, also changes the period for assessing civil penalties for violations of campaign finance reporting requirements.

The bill leaves the committee for a full house vote.