December 2, 2011 •
FEC Cannot Agree On American Crossroads’ Request
But Unanimously Decides Against Senator Lee’s PAC
The Federal Election Commission (FEC) addressed two highly anticipated requests for advisory opinions yesterday.
In the first decision, the commissioners were unable to reach an agreement as to whether American Crossroads, an independent expenditure-only political committee, could produce and distribute television and radio advertisements with supported federal candidates involved in the creation of those messages. Although none of the four drafts of an advisory opinion were accepted by a majority of the six commissions, they released separate statements regarding the request. The statements can be found here:
- Commissioner Steven T. Walther;
- Vice Chair Caroline C. Hunter and Commissioners Donald F. McGahn and Matthew S. Petersen; and
- Chair Cynthia L. Bauerly and Commissioner Ellen L. Weintraub
In the second decision, the commission voted unanimously to deny the request of Senator Michael Lee’s Leadership PAC, Constitutional Conservatives Fund PAC. The commission concluded the PAC could not act as an independent expenditure committee, receiving contributions from corporations and unlimited contributions from individuals, because the PAC is controlled by a federal office holder, Senator Michael Lee.
They reached this conclusion even though separate accounts would be used, as recently allowed for independent expenditure committees by the FEC after the Carey v. FEC court decision and a Stipulated Order and Consent Judgment. They were also not persuaded by the fact the funds would only support candidates other than Senator Lee.
This blog post follows previous entries regarding these issues, including: American Crossroads Wants Candidate Participation in its Ads, FEC Will Not Be Enforcing Certain Laws, and One PAC Is Enough.
December 1, 2011 •
New Campaign Finance Website for the Maryland State Board of Elections
Training on using the new site will be offered December 12.
The Maryland State Board of Elections has launched a new campaign finance website that provides easier searches and greater transparency of campaign finance reports. The new website upgrades and further automates reporting and disclosure of campaign contributions. The new site replaces one run on outmoded software.
Previously, campaign finance reports had to be manually uploaded to the website, often delaying public disclosure until the next day. With the new site, reports are automatically uploaded and can be accessed immediately. The public now has more ways to search campaign finance documents and more comprehensive information about committees, including any violations.
The State Board of Elections will start offering training on how to use the new software on December 12, targeting current and future candidates and fundraising committees. The training will be offered on several dates around the state.
November 30, 2011 •
Ask the Experts – Allocating Contributions Per Election
Here is your chance to “Ask the Experts” at State and Federal Communications, Inc.
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.
November 29, 2011 •
Georgia Ethics Agency Working to Catch-Up
The Georgia Government Transparency and Campaign Finance Commission is trying to catch-up five months after major staff changes and four months after launching an ambitious overhaul.
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.
November 29, 2011 •
32 Rhode Island PACs and Groups Owe Fines to the State
Candidates owe even more
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.
November 28, 2011 •
New Campaign Finance Rules Proposed in Colorado
Secretary of State Seeks Better Organization, Clarity with Proposed Changes
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.
November 28, 2011 •
News You Can Use – November 28, 2011
Here are highlights from the latest edition of News You Can Use:
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.
November 22, 2011 •
Rezko to Remain in Jail Seven More Years
The sentence for Blagojevich’s former fundraiser arrives.
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.
November 22, 2011 •
Alabama Releases 2012 Campaign Finance Filing Calendar
Contains Increased PAC Filing Requirements
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.
November 22, 2011 •
Tuesday News Roundup
In today’s news: Religious lobbying, law firms donating to Obama, campaign finance rules in New York, and Ann Ravel at the FPPC.
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.
November 22, 2011 •
Tony Rezko to Be Sentenced Today
Three years after Blagojevich’s former fundraiser was convicted.
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.
November 21, 2011 •
State Court Rules Against Colorado Secretary of State
Appeal of Ruling is Planned
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.
November 21, 2011 •
D.C. Council to Consider Ethics Proposal
Draft Seeks to Consolidate and Streamline Other Pending Proposals
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.
November 21, 2011 •
News You Can Use – November 21, 2011
Here are highlights from the latest edition of News You Can Use:
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.
State and Federal Communications, Inc. provides research and consulting services for government relations professionals on lobbying laws, procurement lobbying laws, political contribution laws in the United States and Canada. Learn more by visiting stateandfed.com.