October 7, 2010 •
Court Keeps Washington Campaign Spending Limit in Place
Court of Appeals Issues Stay of Decision Declaring Washington Law Limiting Late Campaign Spending Unconstitutional
The Ninth U.S. Circuit Court of Appeals stayed the decision in Family PAC v. McKenna, et al. which declared a Washington law limiting campaign contributions in the final weeks of ballot measure campaigns unconstitutional. U.S. District Judge Ronald Leighton ruled last month that the Washington limit is an unconstitutional infringement on political speech. Late Tuesday, a panel of Ninth U.S. Circuit Court of Appeals judges blocked that ruling from taking effect while the state appeals.
The three-judge panel wrote “Washington and its voters have a significant interest in preventing the State’s long-standing campaign finance laws from being upended by the courts so soon before the upcoming election.” The Court also considered that Family PAC had failed to identify any contributions greater than $5000 that it expected to receive in the event the law would be overturned and appeared not to be participating in the upcoming general election, mitigating any harm that may come from the stay of the ruling. Family PAC was created shortly after last year’s legal deadline for large campaign contributions had passed. The committee said it had an offer for a large donation to finance political ads but could not accept the money because of the state law.
October 5, 2010 •
Montana Corporate Contribution Ban Challenged
Court to Examine Long-standing Montana Law Banning Corporate Campaign Contributions
A Montana district judge will rule on a challenge to Montana’s nearly century-old, voter-passed restriction on direct corporate spending to support or oppose political parties or candidates. The Montana law is being challenged based upon the U.S. Supreme Court’s January ruling in Citizens United v. Federal Election Commission, which overturned a federal ban on corporate spending in political campaigns.
Attorneys for the State of Montana defended the law stating that a law enacted in 1912 should not be lumped with a law Congress enacted 90 years later under a one-size-fits-all federal rule. They added that corporations do speak freely in Montana elections under current law with nearly 200 political action committees active in state politics in the past decade and warned unlimited corporate campaign spending would drastically alter Montana’s current campaigns that rely on person-to-person contact.
October 4, 2010 •
Campaign Laws under Fire Again in Florida
Group challenges Florida campaign law in federal court
The Institute for Justice, a group which touts itself as the only libertarian public interest law firm in the nation, has filed a challenge to Florida’s campaign finance laws in federal court. The suit has been filed on behalf of four Sarasota, Florida residents seeking to pool their monetary resources to buy radio ads against a proposed state constitutional amendment on the November ballot. However, due to requirements to register as a PAC and disclosure requirements associated with such communications, the residents feel their First Amendment rights are being infringed upon.
This is not the first instance wherein the Institute for Justice has challenged a restriction on political speech in Florida, as they were previously successful in having declared unconstitutional Florida’s electioneering communication law in the case of Broward Coalition of Condominiums v. Browning.
Photo of U.S. Federal Courthouse in Tallahassee by Urbantallahassee on Wikipedia.
September 29, 2010 •
National Organization for Marriage Challenges R.I. Campaign Finance Law
Group says Rhode Island’s campaign finance law is unconstitutional.
The National Organization for Marriage (NOM) has filed a federal lawsuit against the Rhode Island Board of Elections seeking to strike down Rhode Island’s campaign finance law. Citing extensively to the recent U.S. Supreme Court decision in Citizens United v. FEC, the plaintiffs allege Rhode Island law’s definition of a political action committee, its expenditure ban, and its expenditure reporting requirements are all unconstitutional.
The plaintiffs are asking U.S. District Judge Mary Lisi for declaratory judgments clarifying the extent to which state law’s $1,000 contribution limits on contributions by political action committees apply to them. NOM also seeks a declaratory judgment stating they are not subject to the extensive reporting requirements imposed by state law upon entities which make independent expenditures. An in-chambers conference regarding the lawsuit has been scheduled for Thursday, September 30th, 2010.
September 28, 2010 •
Arkansas Ethics Commission Releases Opinion
Commission advises against candidates making transfers of funds to their party – with an exception.
The Arkansas Ethics Commission has released an opinion against allowing candidates to transfer to their political party any campaign funds unless the candidate is running unopposed or the election is over. This opinion comes at the request of Doyle Webb, chairperson of the Republican Party of Arkansas, after current Democratic Governor Mike Beebe made such a transfer during his 2006 gubernatorial campaign.
Prior to the 2006 election, Beebe transferred $230,000 to the state Democratic Party from his accumulated campaign funds. However, in the opinion the ethics commission stopped short of calling such a transfer “illegal,’ merely stating “the Commission would advise against making such a transfer,” and noted that further facts concerning the situation would need to be determined prior to any determination as to whether such action would violate the campaign finance laws of Arkansas.
Webb noted that no request was made for Governor Beebe to be penalized for the transfer and the opinion was requested primarily for future reference.
September 27, 2010 •
News You Can Use from Washington
The BIAW Receives a Fine.
The Building Industry Association of Washington (BIAW) was fined $548,000 by the state Attorney General’s office for violating the state’s campaign finance disclosure law. The fine is for $584,527 in undisclosed funds that went to the campaign against Gov. Christine Gregoire.
Here is the source article: “For Conservative BIAW, a $548,000 Fine,” by Joel Connelly in the Seattle Post Intelligencer on September 24.
September 24, 2010 •
DISCLOSE Act Reintroduced and Then Blocked in Senate
Motion of Cloture Fails
Senate Bill 3628, known as the DISCLOSE Act, was reintroduced in the US Senate a second time but failed to garner the 60 votes necessary to be debated on the floor. The motion of cloture vote of 59 to 39 fell along party lines.
A reaction to Citizens United v SEC, the bill includes measures such as requiring organizations to disclose to shareholders, members, or donors information detailing how disbursements were made for campaign-related activity.
September 22, 2010 •
South Carolina Ethics Commission Limits Enforcement
Lacks Power to Declare Statute Unconstitutional
The State Ethics Commission will not enforce contribution limits for committees making expenditures independent of a candidate’s control or consultation. An earlier requested Attorney General’s opinion found a committee engaging exclusively in independent expenditures is not subject to annual contribution limits.
The Attorney General also confirmed the Ethics Commission did not have the power to declare S.C.C. §8-13-1322(A) unconstitutional. The Ethics Commission then issued an Advisory Opinion declaring the Commission would not enforce any contributions limits under S.C.C. §8-13-1322(A) for committees making independent expenditures.
September 22, 2010 •
Minnesota Disclosure Law Upheld
Minnesota Law Requiring Disclosure of Corporate Political Spending Upheld by U.S. District Court
U.S. District Judge Donovan Frank denied a temporary injunction in a lawsuit brought by supporters of Minnesota Republican gubernatorial candidate Tom Emmer, upholding a new Minnesota law that revealed political donations from several corporations. The law was enacted in May after the U.S. Supreme Court ruling in Citizens United earlier this year freed businesses to spend corporate money on elections, overturning restrictions on corporate political spending in about half the states, including Minnesota.
Minnesota lawmakers responded by enacting disclosure requirements so that corporate campaign spending would be public. In his decision, Judge Frank explained the public has an interest in knowing who speaks and who pays for campaign messages and advertisements as elections approach.
Photo of Tom Emmer from the Minnesota House of Representatives Web site.
September 21, 2010 •
Corporations Get Approval for Independent Expenditures in Ohio Elections
A federal court has set aside the state’s prohibition on corporate independent expenditures.
Under the consent decree signed by Judge George C. Smith, corporations may engage in express advocacy for or against a candidate for Ohio office. Corporations are still prohibited from making direct contributions to a candidate or working with a candidate on these independent expenditures. This order brings Ohio elections into compliance with the January “Citizens United” decision which held corporations have a First Amendment right to make independent expenditures.
The decision may have a major impact on Ohio’s campaign finance regulation because the statute in question contains a clause which states if any section of the law is deemed unconstitutional, the entire law is automatically repealed. A federal court will determine the validity of the remainder of the law next week.
September 21, 2010 •
Campaign Finance News from Oklahoma
Ballot issue PACs allowed to receive contributions from other PACs
The Oklahoma Ethics Commission has announced it will not enforce a law banning PAC-to-PAC transfers of funds in an instance where one PAC supports or opposes a ballot issue.
The commission recognizes the rule, as written, is unconstitutional because of the U.S. Supreme Court case “First National Bank of Boston v. Belloti”. The ethics commission will likely rewrite the rule in 2011.
September 20, 2010 •
South Carolina Defines Committee Too Broadly
Court Finds Part of Ethics Statute Unconstitutional
A U.S. District Court has invalidated a South Carolina statute defining committees, including those commonly known as PACs. In South Carolina Citizens for Life, Inc. v Krawcheck, the Court found the South Carolina Ethics Act placed significant burdens on groups qualifying as committees without giving meaningful consideration of a group’s major purpose, threatening to chill their First Amendment rights. Specifically, the definition of committee in S.C.C. §8-13-1300(6) could encompass any group, without reference to the entity’s major purpose, and was unconstitutionally overbroad.
Photo of the South Carolina statehouse by Nikopoley on Wikipedia.
September 17, 2010 •
News from Cook County
Commissioners tighten ethics rules – more news to come.
Cook County Commissioners have approved a series of ethics reforms focused on certain political contributions. Among the reforms is a provision requiring candidates for County Assessor to return contributions exceeding $1,500 from lawyers who appear before their office seeking reduced property values.
Additionally, fines for breaking county ethics rules have been increased tenfold; violators now face a maximum fine of $5,000. The board intends to clarify the county’s conflict-of-interest code after the upcoming election.
You can visit the Web site for the Cook County Commissioners.
September 15, 2010 •
72 Hours from Donation to Broadcast
Nevada Transparency Measures to be Introduced in 2011.
Assembly Majority Leader John Oceguera said he will pursue a number of transparency measures in the 2011 legislative session. Among those to be introduced would be a requirement for all candidates for public office to report every financial contribution online within 72 hours of receipt, including the amount received and the donor.
Another measure would introduce a “cooling off” period before public officials could work as lobbyists. Specifically, an elected official or regulator would be prohibited from lobbying the governmental body where the individual served, or any agency they regulated or oversaw, for a period of two years.
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.