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.

Former New Mexico Governor Bill Richardson is under investigation for violations of campaign finance laws. The Associated Press covers the story in “Lawyers: Feds investigate Richardson fundraising,” by Barry Massey.

The New York Times reports that a fundraiser for New York City Comptroller John C. Liu was arrested for illegally funneling contributions.  Read the full story at “Fund-Raiser for Liu Is Accused of Role in Illegal Donations” by William Rashbaum, David Chen, and Benjamin Weiser.

An Associated Press article reports that Mitt Romney’s emails from when he was governor of Massachusetts were removed at the end of his term. Read “Report: Romney-era emails wiped from Mass. Records” from today’s Boston Herald.

Budgets cuts are further threatening government transparency initiatives. Nextgov reports about it in “E-gov cuts could endanger digital transparency initiatives, groups say” by Joseph Marks.

MINNESOTA:  The Campaign Finance and Public Disclosure Board released a memo concerning electronic filing of campaign finance reports.  Electronic filing of campaign finance reports will be mandatory for most committees beginning with reports covering calendar year 2012. The electronic filing requirement does not apply to 2011 year-end reports.

Additionally, the waiver of electronic filing request process will be discussed at the Board’s December 2011 meeting.

National:

Special Sessions: A calculated risk

Federal:

Obama Administration Draft Memo Could Shed Light on ‘Lettermarking’

Sunlight Foundation Follows Lobbyist Tweets

From the States and Municipalities:

Alabama

Alabama’s New Ethics Law Fails to Stop Exemption Requests from Lobbyists and Public Officials

California

California Legislators Head to Maui for Retreat Funded by Special Interests

California

Carrie Underwood Show Boosts Tribe’s Lobbying Expense

Colorado

Judge Warns Colorado Secretary of State Went Too Far in Raising Campaign Finance Threshold

Colorado

NBC News Can’t Pay for Colorado Governor’s Travel, Ethics Panel Says

Illinois

Clout, Corruption in Illinois to Take Other Forms

Kansas

Kansas’ Lobbyist Data Falls Far Short of Need, Watchdog Group Reports

Maryland

Maryland Sen. Currie Acquitted of Corruption Charges

Missouri

Missouri Lawmaking at Issue before High Court

North Carolina

N.C. Lobbyist Donations Ban Upheld By Federal Court

Wisconsin

First Recall Effort Launched against Walker, Triggering Unlimited Fundraising

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.

A three judge panel of the 4^th U.S. Circuit Court of Appeals ruled unanimously to uphold North Carolina’s ban on registered lobbyists making campaign contributions to candidates for the Legislature and the Council of State.

A lobbyist with the state chapter of the American Civil Liberties Union challenged the ban on contributions, saying it violated her right to freedom of speech and association.

The appeals court upheld a district court ruling by stating the ban was a “valid exercise of North Carolina’s legislative prerogative” to address potential corruption and the appearance of corruption.

A federal lawsuit concerning a Mississippi campaign finance law requiring registration and reporting upon spending at least $200 to support or oppose ballot initiatives was heard last week in U.S. District Court.

The case stems from the desire of five Lafayette County, Mississippi residents who would like to spend $1,000 to publicly support their views in favor of Mississippi Initiative 31, which limits the government’s use of eminent domain to take private land. The residents argued their First Amendment freedom of speech and association rights have been violated as a result of the campaign finance provisions and seek to have the law declared unconstitutional and unenforceable.

The case was heard by U.S. District Judge Sharion Aycock, but she did not immediately issue a ruling.

This week the Missouri Supreme Court will hear arguments about whether lawmakers acted illegally in a legislative attempt to increase ethics requirements. The case appeals a ruling by Circuit Judge Daniel Green finding Senate Bill 844 to be a violation of the constitution’s single subject requirement.

What began as a one-page bill allowing officials to use the Office of Administration for procurement decisions became a 69-page bill entitled “relating to ethics.” The bill changed campaign finance laws, gave greater authority to the Missouri Ethics Commission, created new crimes for ethics violations, and required Capitol dome keys be given to all lawmakers.

Judge Green’s ruling struck down all but the original procurement provision. The Attorney General believes the bill can be saved by striking only the provision regarding Capitol dome keys. Those challenging the bill argue the entire bill is unconstitutional.

Photo of the Missouri Supreme Court building by Americasroof on Wikipedia.

The Fair Political Practices Commission has issued notice of proposed amendments to the California Code of Regulations to be considered at a public hearing on December 8, 2011. The proposed regulations codify commission guidance instructing filers to treat an in-kind contribution of the services of salaried personnel to a committee and the expenditure by the person making the salary payment as a contribution made on the payroll date of the salaried personnel.

The commission will also consider regulations which differentiate a contribution from a donation. Under the proposed regulation, a contribution is a payment made for a political purpose and includes payments to a multi-purpose organization. By contrast, a payment to a multi-purpose organization that is not made or used for a political purpose is to be treated as a donation and not a contribution for the purposes of identifying reportable contributions.

Lastly, the commission will consider amendments to the provisions pertaining to primarily formed and general purpose committees to assist filers in determining which label fits the purpose and structure of their committee.

The regulations define a general purpose committee as an ongoing committee which supports multiple candidates and measures in successive elections. General purpose committees include associations, political action committees, political party committees, major donors, as well as entities and individuals making independent expenditures.

The regulation proposes a standard for determining whether a committee is a state, county, or city general purpose committee. A committee will be considered a city or county committee if more than 70 percent of their activity is at the city or county level. Classification as a state committee will be the default.

Pursuant to the proposed regulation, a primarily formed committee is a committee formed or existing to support a single candidate or measure in a specific election. A committee will be considered primarily formed if more than 70 percent of the committee’s contributions and expenditures are for specific candidates or measures during the 24 months preceding the date where the candidate or measure is on the ballot.

Image of the Seal of California by Zscout370 on Wikipedia.

National:

Largest U.S. Companies Increasingly Disclose Political Spending

Report Cites Growing Role of Interest Groups in State Judicial Elections

Federal:

Abramoff Divulges K Street Secrets

Cain Blames Perry as New Sexual Harassment Allegations Surface

FCC To Rule on On-line Political Advertisement Disclosure

Justice Amps Up Enforcement of Law on Foreign Advocacy

Lawmakers Demand FEC Documents, Threaten Subpoena

From the States and Municipalities:

Alabama

New Alabama Ethics Law Sweeps in Culture Shift for Capital Lobbyists

California

Passion, Politics Link Lobbyist Couples

California

State Lobby Spending on Pace to Set Records

Illinois

Illinois Powerbroker Convicted in Shakedown Trial

Maryland

County Ethics Bill Would Restrict Lobbying, Add Enforcement

Minnesota

Campaign Finance Board Temporarily Upholds Disclosure Requirements

Nebraska

Report: Nebraska OK at tracking lobbyists, could do better

New Hampshire

N.H. Official Sets Primary for Jan.10

Ohio

Amid Corruption Scandal, Local Races Framed by Honesty and Character Issues

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.

Tim Uppal, Canada’s Minister of State for Democratic Reform has proposed a law which would limit loans available to candidates and political parties.

Under the proposed legislation, loans, loan guarantees, and contributions from individuals would be prohibited from exceeding $1,100 in the aggregate per calendar year. Presently, loans are not treated as part of the annual aggregate limit.

The proposal would also ban loans by unions as well as corporations when the loans are not made in the regular course of business by a financial institution.

A Federal constitutional amendment allowing Congress and the states to regulate campaign finance is being introduced by U.S. Senators Tom Udall and Michael Bennett.

The amendment, a response to last year’s Supreme Court decision, Citizens United v FEC, grants Congress and the states the power to “regulate the raising and spending of money and in kind equivalents” in their laws for their respective elections.

The bill allows the government to set limits on both the amount of direct political contributions to candidates and the amount of independent expenditures that may be made in support of or in opposition to those candidates.

According to his press release, Senator Udall states, “With the Supreme Court striking down the sensible regulations Congress has passed, the only way to address the root cause of this problem is to give Congress clear authority to regulate the campaign finance system.”

The full text of the proposed amendment reads as follows:

SECTION 1. Congress shall have power to regulate the raising and spending of money and in kind equivalents with respect to Federal elections, including through setting limits on:

(1) The amount of contributions to candidates for nomination for election to, or for election to, Federal office; and

(2) The amount of expenditures that may be made by, in support of, or in opposition to such candidates.

SECTION 2. A State shall have power to regulate the raising and spending of money and in kind equivalents with respect to State elections, including through setting limits on:

(1) The amount of contributions to candidates for nomination for election to, or for election to, State office; and

(2) The amount of expenditures that may be made by, in support of, or in opposition to such candidates.

SECTION 3. Congress shall have power to implement and enforce this article by appropriate legislation.

A different constitutional amendment addressing the Citizen’s United decision was introduced in September by Congressman John Conyers. Information about that amendment may be found in a prior LobbyComply post here.