The San Jose City Council voted unanimously on Tuesday, October 18 to change the city’s campaign finance laws. Changes approved include the elimination of the city’s blackout periods which prohibit campaign contributions within 17 days of a regular election and within seven days of a special election.

Per the new law, the voluntary candidate campaign expenditure limits will increase from $1.00 per resident per election to $1.25. The rate for mayoral elections will remain the same at $0.75 per resident per election.

Further changes implemented by the new law eliminate an increase in the voluntary expenditure cap triggered by the fundraising efforts of other candidates and independent committees who do not choose to accept the limit.

Franklin County Circuit Court Judge Thomas Wingate issued a restraining order against an independent political group running political ads against Kentucky Governor Steve Beshear on Monday, October 17. The order prohibits the attack ads paid for by the group Restoring America from running on television and radio stations.

In his order, Judge Wingate called the ads “an illegal attempt” to influence the outcome of Kentucky’s 2011 gubernatorial election due to a failure by Restoring America to properly report the source of contributions funding the ads as required under Kentucky law. Restoring America had reported a solitary contribution from Restoring America, Inc. of more than $1.3 million to run the ads, but the judge ruled the use of the additional entity was simply masking the identities of individual donors.

Judge Wingate’s order, thought to be the first such order to halt political advertising by a third party in the state, was quickly met with opposition by First Amendment rights activists who have argued it is no more than a state-level assault on the landmark U.S. Supreme Court decision in the Citizens United case.

Restoring America did file an initial appeal on Tuesday, October 18, but that appeal was rejected due to a technical deficiency. Another appeal is expected.

A campaign finance law passed decades ago has recently come under fire in light of a possible gubernatorial recall. The law effectively allows public officials subject to a recall to collect unlimited contributions during the period when petitioners are collecting signatures to force a recall.

The law has recently been criticized because it would allow Governor Scott Walker to raise millions of dollars in unlimited contributions, but his eventual opponent would not have the same opportunity.

Democratic Rep. Kelda Helen Roys of Madison introduced Assembly Bill 296 last week to repeal the law and institute campaign contribution limits on a public official subject to a recall.

Federal:

Company Shops for Campaign Cash

Former Lobbyist Sent to Jail for a Few Hours for Taking Hill Aides to 2003 World Series Game

‘Scarlet L’ for K Street Returns as Obama Sharpens 2012 Rhetoric on Lobbyists

‘Super PAC’ American Crossroads Seeks Permission to Feature Candidates in Ads

The Outsized Returns from Lobbying

From the States and Municipalities:

California

California OKs Donations via Text

California

L.A. Ethics Commission Slaps Developer with Maximum Campaign Fine

California

Proposed California Regulations Spell Out Gift-Reporting Requirements for Elected Officials

Massachusetts

DiMasi Friend Admits Breaking Massachusetts Lobbying Law

New Mexico

GOP Files Lawsuit against Newly Imposed Campaign Contribution Limits in New Mexico

Tennessee

Tennessee Lawmaker Arrested on DUI, Gun Charges

Vermont

Judge: Republican Governors Association violated Vermont campaign finance laws

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.

At its October 13, 2011 hearing, the Fair Political Practices Commission voted 3-0 to adopt Regulation 18421.31 regarding text message contributions. Per the new regulation candidates and committees are permitted to raise funds through low-dollar text message contributions.

For the purposes of the regulation, contributions are deemed to be received on the date that a mobile fundraising vendor, acting as an agent of the candidate or committee, obtains possession and control of the funds. Once received by the mobile fundraising vendor, contributions must be promptly reported to the candidate or committee’s treasurer or a designated agent thereof no later than the closing date of any campaign statement the candidate or committee is required to file.

For text message contributions of less than $25, candidates and committees will be required to maintain the dates and daily totals of contributions. For contributions exceeding $25 but less than $100, the regulation requires that candidates and committees record the full name and street address of the contributor, the cumulative amount received from each contribution, and any information regarding an intermediary where applicable.

When a contribution exceeding $100 is received, the regulation requires that the candidate or committee maintain a record of the contributor’s name and address, occupation, employer, the cumulative amount received from the contributor, and any information regarding an intermediary where applicable.

Under the regulation, a contribution made by text message will be attributed to the person who is subscribed to the cell phone number from which the contribution is received.

The Federal Election Commission (FEC) is soliciting comments for possible regulations concerning exceptions to its rules regarding disclaimers on internet communications, hoping to glean insights to keep pace with the rapidly evolving technological advances available to practitioners of campaign finance.

In its draft Advance Notice of Proposed Rulemaking, the FEC invites comments addressing the ways that campaigns, political committees, and others use or may soon use the internet, mobile devices, and other technologies to disseminate and receive campaign and other electoral information. The Commission is also interested in possible modifications and technological alternatives to the current disclaimer requirements, and data or experiences “in purchasing, selling, or distributing small or character-limited advertisements online.”

The FEC anticipates any final rules would not become effective until after the 2011-2012 election cycle.

The New Mexico Republican Party, represented by attorney James Bopp, Jr., has filed a lawsuit challenging New Mexico’s campaign finance law. The suit asks the federal district court in Albuquerque to declare unconstitutional part of a state law which sets a contribution limit of $5,000 to or by political parties. The law was passed in 2009, but did not become effective until after the 2010 election.

The lawsuit also contends that federal election law precludes New Mexico from restricting how much money a national political party can give to a state party organization for election work, such as registering voters and encouraging voter turnout.

Federal:

How One Criminal Case Hit K Street

Hybrid PACs: Super PACs and Traditional PACs Can Merge

Lobbyists In On ‘Super’ Secrets

OMB Finalizes Details on White House Lobbying Reform Rules

From the States and Municipalities:

Alabama

Commission’s Opinions Further Define 2010 Ethics Law

Delaware

Colbert Takes Satirical Swipe at Abuse of Delaware Spending Disclosure Laws

Minnesota

Disclosure Rules Apply, Campaign Finance Board Says

New Jersey

N.J. Ethics Reform Efforts Bogged Down for Year

New Mexico

New Mexico Governor Signs Bill to Close Loopholes in State Contract Bidding

New York

NYC Mayor Cross-Examined at Ex-Operative’s Trial

Texas

Recall Case Likely to Extend Beyond El Paso

Utah

Lobbyists Want Keys to the Gym and Valet Parking at Capitol

Virginia

Trackers an Evolving but Undeniable Political Force

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.

The Federal Election Commission (FEC) will no longer prohibit nonconnected political committees from accepting corporate and labor organization contributions, provided the political committee maintains and deposits those contributions into separate bank accounts.

The Commission will also not limit the amounts permissible sources can contribute to such accounts.

In an statement released by the FEC, it stated, consistent with its agreement to a stipulated order and consent judgment in Carey v. FEC, it would no longer enforce 2 U.S.C. §§ 441a(a)(1)(C) and 441a(a)(3), as well as any implementing regulations, against any nonconnected political committee with regard to contributions from individuals, political committees, corporations, and labor organizations under certain conditions.

A single committee may now contribute directly to candidates and political committees, and make independent expenditures, separating the funds only by using two separate bank accounts. The committee must maintain the statutory limits on the solicitation of funds used for direct contributions while it may simultaneously seek unlimited funds for use in their independent expenditures.

The FEC intends to develop new regulations and amend its reporting forms. Until that time, the Commission says committees should follow the procedures the FEC outlines in its current statement, which is located here.

This post follows up  previous articles by George Ticoras, “FEC Agrees Not to Enforce Some Laws Against NDPAC” and “One PAC Is Enough.”

The Minnesota Campaign Finance and Public Disclosure Board released a statement of guidance that details when groups are required to disclose donors who support or oppose a ballot initiative.

The guidelines suggest that a group that is involved in multiple activities including the support or opposition of ballot initiatives must determine how much of a contribution is directed to a ballot initiative influencing effort.  Money specifically designated for ballot question expenditure purposes and money given in response to an express or implied solicitation to support a group’s campaign to promote or defeat a ballot question is considered a contribution for the purpose of promoting or defeating a ballot question which requires donor disclosure.

The Campaign Finance Board will consider adopting the guidelines at its next meeting.

The Federal Election Commission (FEC) issued an Advisory Opinion stating a “project” created by a trade association may make certain communications to the general public asking individuals to contribute directly to particular federal candidates.

The Utah Bankers Association (U.B.A.) had requested the Advisory Opinion. It intends to solicit the general public through its website and e-mail, as well as through the website of “Friends of Traditional Banking,” a project created for this purpose. There will be no coordination with any candidate and no contributions will be accepted or forwarded to federal candidate’s committees.

In Advisory Opinion 2011-14, the Commission concluded the expenses for soliciting contributions through a trade association’s own website and e-mail is not an in-kind contribution because an internet communication is not a “public communication” if it “is not placed for a fee on another person’s website,” and therefore does not meet the content prong test of coordinated communications. The Commission also found U.B.A.’s plan is not “electioneering communications” which are limited to broadcast, cable, or satellite communications

Other questions related to the U.B.A. request were also addressed in the opinion.

Only lobbyists in Alaska who are constituents in a state candidate’s newly certified district may donate to a candidate’s campaign, an Advisory Opinion from the Alaska Public Offices Commission has declared.

Because a lobbyist residing in a candidate’s district may contribute to a candidate, Representative Bob Lynn requested an opinion regarding whether a lobbyist in his current district could donate to his campaign when he or she may not be a constituent in his proposed new voting district.

Advisory Opinion 11-14-CD concludes candidates “will only be able to accept donations from lobbyists residing in the new district.”

Presently, only candidates for the proposed new districts, and not the current districts, are being certified by the Division of Elections. In its analysis, the Advisory Opinion also articulates, “Whether or not a lobbyist resides in the candidate’s district is determined on the day the contribution is accepted.”

Federal:

Business Executives Call for End to Anonymous Cash

In Turn to Politics, Facebook Starts a PAC

Political Embezzlement Rises as U.S. Campaign Accounts Swell

Solyndra’s Lobbying Not Disclosed by Energy under Stimulus Guidelines

From the States and Municipalities:

Colorado

Campaign Finance Law Argued Before Colorado Supreme Court

Florida

After ‘Wild West,’ Palm Beach County Lobbyists Face New Rules

Indiana

Federal Judge Strikes Down Portion of Indiana ‘Robo-Call’ Ban

Maryland

State Senator’s Future Hangs in the Balance at Corruption Trial

Minnesota

Campaign Finance Board Releases Guidelines on Ballot Initiatives

Pennsylvania

Ex-Judge Gets 17 1/2 Years in Pa. Kickbacks Case

Rhode Island

Arrested Rhode Island Representative Won’t Resign, Will Run Again

Tennessee

Tennessee Lawmakers’ Ethics Panel Has Own Critics

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.

The Municipal Securities Rulemaking Board (MSRB) has issued a reminder regarding the application of rule g-37 to federal election campaigns of issuer officials.

In the notice, the MSRB reminds “brokers, dealers and municipal securities dealers” of prohibitions outlined in previous MSRB guidance notices, which highlight the rules and prohibitions concerning solicitations and contributions for certain state and local officials seeking election to federal office.

Generally, issuer officials are directly or indirectly responsible for, or can influence the outcome of, the hiring of a broker, dealer or municipal securities dealer for municipal securities business.

The reminder can be found here.