Federal:

FEC Leaves Unclear Path for Super PACs

Gingrich’s Work Shows Limits of U.S. Lobbying Law

From the States and Municipalities:

Arizona

Clean Elections Foes Say Public Funds Are Used to Influence Election Outcomes

Colorado

Colorado Secretary of State Scott Gessler Proposes Rewriting of State Campaign Finance Rules

Georgia

Ethics Commission Deals with Challenges of Change

Indiana

Marion County Judge Scolded for Fundraising Language

Kansas

Kansas Governor Says Staff Overreacted to Teen’s Tweet

Massachusetts

Columbus Center Developer Fined $1.6 Million

Nevada

Ethics Commission Party May Not Have Been So Ethical

New York

Second Bribe Case for Lawmaker Just Acquitted

North Carolina

Three Perdue Associates Indicted

South Carolina

S.C. Governor’s Chef Told to Reimburse State after Using Its Resources for Catering

Washington

Washington Rep. Hinkle Seeks Change to Fundraising Law

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.

Following in the footsteps of California, the state of Maryland will be allowing political campaign contributions via text messages on mobile devices. Jared DeMarinis, Maryland State Board of Elections’ Director of Candidacy and Campaign Finance,  says this will open the process up to more people giving smaller donations.

For the full story, read “Rule would allow campaign donations by text message” by Annie Linskey in the Baltimore Sun.

According to the article: “Maryland’s General Assembly passed legislation this year authorizing campaign contributions by text message and directing the Board of Elections to implement the change. The board has drafted regulations, which are subject to public comment before they can go into effect.”

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.

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.

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.