In an advisory opinion released today, the Federal Election Commission (FEC) acknowledged bitcoins as an acceptable form of political contribution. The FEC determined Make Your Laws PAC, Inc. can accept and purchase bitcoins.

The commission concluded “bitcoins are ‘money or anything of value’ within the meaning of [2 U.S.C. §431(8)(A)(i)].” It also stated bitcoin contributions may be held in a “bitcoin wallet until the committee liquidates them” and the valuation of a bitcoin donation is made “at the time the contribution is received.” However, the commission did not have the requisite four affirmative votes to decide whether bitcoin contributions could be used to acquire goods or services.

According to the Washington Post, FEC Chairman Lee Goodman said, “Just philosophically, I think it’s important for the FEC to embrace technology and innovation, and that’s what we did today.”

The attorney for the eponymous plaintiff in McCutcheon v. Federal Election Commission (FEC) has filed another challenge against the nation’s campaign finance regulations only two weeks after the U.S. Supreme Court’s historic decision ruling aggregate contribution limits unconstitutional.

Stop Reckless Economic Instability Caused by Democrats (STOP REID) v. Federal Election Commission was filed on April 14 in the U.S. District Court for the Eastern District of Virginia by Dan Backer of DB Capitol Strategies. STOP REID is a nonconnected political committee registered with the FEC. On the FEC webpage, Backer is listed as the treasurer of the committee.

This suit was brought because federal law currently has different contribution limits based on the classification of a political committee. For instance, the law allows certain political committees existing for more than six months, with other qualifications, to contribute up to $10,000 per candidate while newly formed political committees existing for less than six months are only permitted to contribute a maximum of $5,200 per candidate. The complaint argues the differing direct contribution limits for political committees to candidates violate the First Amendment rights of freedom of association and speech for committees and their members.

On February 6, the Federal Election Commission (FEC) published its Price Index Adjustments for Expenditure Limitations and Lobbyist Bundling Disclosure Threshold in the Federal Register. The lobbyist bundling disclosure threshold has increased to $17,300 for 2014 from $17,100 in 2013. This threshold amount is adjusted annually.

Federal law requires authorized committees of federal candidates, leadership PACs, and political party committees to disclose contributions bundled by lobbyists and lobbyists’ PACs.

The Federal Election Commission (FEC) released its package of legislative recommendations this week. All eight recommendations were unanimously approved by the commission with the hope Congress will implement the changes.

Some of the changes proposed include requiring electronic filing of electioneering communications reports, making permanent the Administrative Fine Program for the delinquent filing of reports, and increasing and expanding the prohibitions on fraudulent misrepresentation of campaign authority.

Noting other federal and state agencies receive “donated services and products for information technology projects,” the FEC would also like Congress to authorize the commission to have the ability to accept such gifts for use in continuing “its efforts to facilitate transparency in the federal campaign finance system through a state-of-the-art, web-based public disclosure system.”

A bill extending through 2018 the authority of the Federal Election Commission to impose civil money penalties on the basis of a schedule of penalties established and published by the commission has passed both houses of Congress. The bill applies the penalties to violations of qualified campaign contribution and expenditure disclosure requirements. House Bill 3487 passed the Senate on Friday December 20, 2013.

National:

Initiative Spending Booms Past $1 Billion as Corporations Sponsor Their Own Proposals

Washington Post – Reid Wilson | Published: 11/7/2013

The initiative process, originally aimed at giving citizens the chance to break industry’s hold on state Legislatures, is increasingly becoming the domain of corporations and wealthy individuals who advance new laws for their own advantage, bypassing reluctant lawmakers and spending millions of dollars along the way. More than $1 billion has been spent in the past 18 months on ballot initiatives in just 11 states.

Federal:

FEC Poised to Allow Bitcoin Campaign Donations

Politico – Byron Tau | Published: 11/7/2013

A draft proposal from the FEC would allow campaigns to accept, but not spend, the digital currency Bitcoin. According to the proposal, the currency will count as an in-kind contribution to a campaign, like a stock or bond. The agency will not consider them currency.

Pro-Democratic Super PACs Outspend Conservatives

USA Today – Fredreka Schouten | Published: 11/12/2013

Liberal super PACs have spent $10.8 million on federal races this year, twice as much as conservative super PACs. Much of the money has flowed to a handful of elections to fill congressional vacancies. Liberal money also makes up 70 percent of the election-related federal spending by so-called dark money groups – politically active non-profits that do not have to disclose the sources of their money.

From the States and Municipalities:

California – FBI Capitol Sting Shines Light on Latino Caucus

Sacramento Bee – Laurel Rosenhall | Published: 11/10/2013

The details of the most recent leadership fight at the California Legislature’s Latino Caucus caught the attention of FBI agents investigating one caucus member, state Sen. Ron Calderon, for allegedly taking bribes. The emerging case has exposed caucus decisions to public view just as the group’s influence is peaking. The 25 members constitute more than a fifth of the Legislature, control hundreds of thousands of dollars in campaign funds, and wield influence that affects millions of Californians.

Florida – Sweetwater Mayor, Lobbyist Plead Guilty

Miami Herald – Jay Weaver | Published: 11/13/2013

Suspended Sweetwater Mayor Manuel Maroño and lobbyist Jorge Forte pleaded guilty to charges of conspiring to commit honest services fraud. Two others facing similar charges resulting from the same FBI sting operation are former Miami Lakes Mayor Michael Pizzi and lobbyist Richard Candia. The two corruption cases were remarkable even by South Florida’s standards as the crackdown snared two mayors and two lobbyists on the same day.

Georgia – Ga. Governor Suspends Indicted Lawmaker Accused of Illegally Claiming Expense Pay

Columbus Republic – Kate Brumback (Associated Press) | Published: 11/13/2013

Georgia Gov. Nathan Deal suspended state Sen. Don Balfour from office. A review committee recommended the action after a grand jury indicted Balfour on felony charges of illegally claiming legislative expense pay and double-billing the state and his private employer for some expenses. He previously agreed to pay a $5,000 fine issued by the Senate Ethics Committee for accepting pay for in-state work and travel on days when he was elsewhere.

Illinois – Rahm Emanuel to Propose Ordinance Forcing Contractors to Report Corruption

Chicago Sun Times – Fran Spielman | Published: 11/12/2013

Mayor Rahm Emanuel proposed a measure that would require city contractors to immediately report knowledge of corruption to Chicago’s inspector general or risk losing their contract. Emanuel’s office said the measure, if approved, would be incorporated into all future city contracts.

Illinois – Rauner’s $500,000 Donation to Lift Fundraising Limits in Gov. Race

Chicago Sun Times – Natasha Korecki and Dave McKinney | Published: 11/13/2013

Illinois gubernatorial candidate Bruce Rauner is adding $500,000 of his own money to his campaign, an amount that will trigger a provision allowing his opponents to raise unlimited amounts of cash. Under the law, candidates can only accept contributions of up to $5,300 from individuals and $52,600 from PACs. But those caps are lifted if any statewide candidate or member of the candidate’s immediate family donates or loans more than $250,000 to his or her campaign during the 12 months prior to an election.

Louisiana – Louisiana Ethics Board’s Focus on Small Offenses Lets Larger Violations Go Unnoticed, Observers Say

New Orleans Times Picayune – Lee Zurik (WVUE) and Manuel Torres | Published: 11/12/2013

Critics say the Louisiana Board of Ethics spends too much of its time going after candidates who file late, essentially ignoring more serious violations. Board of Ethics Administrator Kathleen Allen said her agency does not have enough personnel or a legal mandate to regularly audit even a small percentage of the thousands of campaign finance reports filed every year.

Massachusetts – Campaign Bill Would Order Fast Disclosure of Donors

Boston Globe – Michael Levenson | Published: 11/12/2013

Outside political committees pumped nearly $4 million into the Boston mayoral election this year, most of it to help elect Martin Walsh. But current law does not require those groups to reveal their donors until January. Secretary of State William Galvin and several lawmakers are preparing legislation that would require outside groups to disclose their donors in real time.

Minnesota – Minnesota Campaign Finance Regulators’ Database Isn’t Adding Up

Minneapolis Star Tribune – Glenn Howatt and Rachel Stassen-Berger | Published: 11/9/2013

An analysis by the Minneapolis Star Tribune shows online data from the Minnesota Campaign Finance and Public Disclosure Board are rife with mistakes, leading to errors that total as much as $20 million over the past decade. The flaws are enough to hamper any comprehensive attempt to examine the flow of political money in the state, at a time when that spending has soared to record heights.

New York – NY Democratic Committee’s Pro-Cuomo Ads Questioned as Skirting Lobbying Law, Public Disclosure

Columbus Republic; Associated Press –   | Published: 11/14/2013

Watchdogs contend television ads by the state Democratic Committee that urge residents to contact lawmakers in support of Gov. Andrew Cuomo’s ethics and jobs legislation violate New York’s lobbying law. The law requires those seeking to influence legislators be registered as lobbyists so they are publicly identified and disclose their funding and spending. Political parties and committees have long believed they were exempt.

Pennsylvania – Lobbyist Penalty Reforms Pass Pa. House

WHTM – Myles Snyder | Published: 11/13/2013

The Pennsylvania House unanimously approved a bill that would increase penalties for lobbyists who break the law. House Bill 744, which now moves to the Senate, would raise the maximum fine the state Ethics Commission can impose from $2,000 to $10,000, and it would up the current five-year ban on lobbying to 10 years, among other provisions.

Vermont – Democratic PAC Must Pay $30,000 Penalty

Burlington Free Press – Nancy Remsen | Published: 11/13/2013

Green Mountain Future, a PAC created by the Democratic Governors Association, will pay the state of Vermont a $20,000 civil penalty for not including its address on its website or television ads against Republican gubernatorial candidate Brian Dubie during the 2010 campaign. The group also must pay $10,000 for not registering as a PAC or filing campaign finance reports.

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.

Lobbying

“Lobby firm brings on Obama aide” by Kevin Bogardus in The Hill.

California: “FPPC fines ex-lawmaker Mike Roos for improper contributions” by Laurel Rosenhall in The Sacramento Bee.

Florida: “Tallahassee lobbyists won’t be audited until 2015” by Aaron Deslatte in the Orlando Sentinel.

Campaign Finance

California: “Assemblyman Alejo to return $21,092 in excess campaign contributions” by Patrick McGreevy in the Los Angeles Times.

Ethics

“Hacking Attempts on Federal Election Commisison Website” by Kent Cooper in Roll Call’s Political MoneyLine.

California: “Ex-Senate leader Dean Florez faces fines for misusing campaign funds” by Patrick McGreevy in the Los Angeles Times.

Florida: “Suspend ethics commission, state audit committee tells Palm Beach County” by Jennifer Sorentrue in the Palm Beach Post.

Massachusetts: “Massachusetts: State Ethics Commission conflict plan could have ‘huge effect on towns’” by Andy Metzger in The Republican.

Elections

“Roll Call’s 10 Most Vulnerable House Members Revealed” by Shira T. Center and Emily Cahn and Abby Livingston in Roll Call.

Alabama: “Alabama Special Election Is Proxy Battle for National GOP” by Emily Cahn in Roll Call.

Mississippi: “3 special elections for House seats Tuesday” by The Associated Press in the Sun Herald.

South Carolina: “Dozens of cities are holding elections in SC” by The Associated Press in GoUpstate.com.

Redistricting

Alaska: “Redistricting board withdraws request for delay” by The Associated Press in the Anchorage Daily News.

On October 23, 2013, the Federal Election Commission (FEC) updated its policy regarding a program for requesting consideration of legal questions during a report review or audit process.

The commission now provides an electronic means for filing these types of requests, which previously were available only by filing in paper form. While requests may be still submitted in paper form, the FEC encourages requestors to submit their requests via email to ensure the timely receipt and consideration of the comments.

Requestors may submit requests to LegalRequestProgram@fec.gov

Lobbying

“Lobbyists’ lobbying group wants a new name — one that doesn’t mention lobbying” by Holly Yeager in The Washington Post.

Campaign Finance

“No, overturning campaign contribution limits really would be a problem” opinion piece by Bob Biersack in The Washington Post.

“The next, next Citizens United” by Reid Wilson in The Washington Post.

“McCutcheon v. FEC: Why it matters” by Jerad Najvar and Dan Backer in The Daily Caller.

Missouri: “Candidates to file campaign finance reports with Missouri Ethics Commission” by The Associated Press in The Republic.

New Mexico: “Candidates face campaign finance report deadline” by The Associated Press in KFDA News.

Ethics

Missouri: “St. Louis Firefighters PAC fined for campaign violations in St. Louis mayoral race” by Nick Pistor in the St. Louis Post-Dispatch.

New York: “Lawsuit: Silver breached ‘contract’” by James M. Odato in the Times Union.

Open Government

“Mass. lawmakers weighing public records bills” by The Associated Press in the Boston Herald.

Lobbying

“Shutdown can’t stop lobbyists from their appointed rounds” by Byron Tau in Politico.

“What’s a Hill Résumé Worth on K Street? Maybe Not $500K” by Kate Ackley in Roll Call.

“Lobbying World” in The Hill.

Nevada: “Former Nev. lobbyist sentenced to 2 years in prison” by Martha Bellisle in USA Today.

Campaign Finance

“Wealthy Donors’ Influence May Rise After Next Supreme Court Campaign Finance Case” by Paul Blumenthal in the Huffington Post.

“Donation limits help keep politics honest” opinion piece by Meredith McGehee on CNN News.

Mississippi: “Judge blocks part of Miss. campaign finance law, calls it unconstitutional” by Emily Wagster Pettus (Associated Press) in the Clarion Ledger.

Ethics

“Ethical limits on federal employees would continue in shutdown” by Eric Yoder in The Washington Post.

“As shutdown commences, federal open government databases go dark or dormant” by Stephen Stirling in The Star-Ledger.

“Government shutdown shrinks FEC to just four employees” by Dave Levinthal in The Center for Public Integrity.

Elections

“Election Laws Challenged in Only State to Act Since Supreme Court Ruling on Voting Rights Act” by Wendy Underhill in NCSL’s The Thicket.

Alabama: “Special election scheduled to fill Rep. Barry Mask’s legislative seat” by The Associated Press on Al.com.

Nevada: “More Nevadans register nonpartisan in September than other two parties combined” by The Associated Press in the Reno Gazette-Journal.

Government Shutdown

“GOV Unplugged: Your Guide to What’s Shut Down During a Shutdown” by Joseph Marks in Nextgov.

Government Tech and Social Media

“Feds Warm Up To LinkedIn” by Mark Amtower in Information Week.

State Legislatures

Oregon: “Oregon Legislature: Vote count still tight in special session” by Hannah Hoffman and Anna Staver in the Statesman Journal.

Lobbying

“Lobbyists prepare for government shutdown” by Byron Tau in Politico.

“Lobbyists swoop in to defend investor visas” by Kevin Bogardus in The Hill.

Hamilton, Ontario: “Lobbyist registry delayed again” by Matthew Van Dongen in The Spec.

Campaign Finance

“Lobbying, Campaign Finance, and IRS Reports Keep Moving During Shutdown” by Kent Cooper in Roll Call’s Political MoneyLine Blog.

“House Members Shut Down Gov’t. Money Going Out, But Not Contributions Coming In” by Kent Cooper in Roll Call’s Political MoneyLine Blog.

“The Next Citizens United?” by Richard Hasen in Slate.

“The case for eliminating contribution limits” by Ann W. Herberger in Campaigns & Elections.

“Top U.S. political donors in 2012 among country’s richest men” by Gabriel Debenedetti in Reuters.

Alaska: “APOC: No immediate action on complaint against Stiver” by Sam Friedman in the Fairbanks Daily News-Miner.

Maryland: “Maryland’s new laws at a glance” by John Wagner in The Washington Post.

Ethics

FEC: “Not ‘essential’: Shutdown would hit FEC hard” by Dave Levinthal in The Center for Public Integrity.

Georgia: “Ethics commission to ask for special investigator” by The Associated Press in the Athens Banner-Herald.

Ohio: “Son of indicted donor’s lawyer works for Mandel” by Joe Vardon in The Columbus Dispatch.

Government Tech and Social Media

“Government Social Media Feeds Will Go Dark During a Shutdown” by Joseph Marks in Nextgov.

Elections

Ohio: “Ohio lawmaker’s election reform bills include voter ID requirement, reduced early-voting times” by Jeremy Pelzer in The Plain Dealer.

Pennsylvania: “Challenge to Pennsylvania’s voter ID law not affected by Justice Dept. lawsuit against N.C.’s law” by Jan Murphy in The Patriot-News.

Yesterday, President Barack Obama’s two Federal Election Commission nominees, Anne Ravel and Lee E. Goodman, were confirmed by the U.S. Senate. Ravel is the chair of the California Fair Political Practices Commission. Goodman is a partner with the law firm of LeClairRyan. The remaining four commissioners are all serving with expired terms.

Lobbying

California: “California political watchdog sets sights on major cases” by Christopher Cadelago in The Sacramento Bee.

Florida: “Lobbying group wants a say in auditing process” by Rochelle Koff in Miami Herald’s Naked Politics blog.

Utah: “Las Vegas business leaders broaden approach to DC lobbying” by the Las Vegas Review-Journal.

Campaign Finance

“Supreme Court may strike new blow to campaign funding laws” by David G. Savage in the Los Angeles Times.

Arizona: “Campaign finance law throws twist at candidates” by The Associated Press in KSAZ Fox10 News.

Arkansas: “Ethics panel: Candidate’s corporation can’t provide free office space” by John Lyon in the Arkansas News.

Delaware: “Illegal donations to Jack Markell’s 2008 campaign discovered” by Maureen Milford in The News Journal.

Wisconsin: “Political Conduits: Pouring Millions Into Wisconsin Elections” by Tim Morrissey in Public News Service.

Ethics

“Senate confirms Obama’s FEC nominees” by Byron Tau in Politico.

Georgia: “Claims in ex-Ga. Ethics Commission leader’s lawsuit call agency’s independence into question” by The Associated Press in the Seymour Tribune.

Georgia: “LaBerge Gets Raise As Ethics Comm. Cuts Costs” by The Associated Press on Georgia Public Broadcasting.

State Legislatures

Florida: “Lawmakers return to Tallahassee for committee week” by Michael Van Sickler in the Miami Herald.

On September 18, Donald F. McGahn II announced his resignation from the Federal Election Commission (FEC). McGahn served with the commission since 2008.

Currently, President Obama’s two new nominations for the commission, Anne Ravel and Lee E. Goodman, are in the process of being confirmed as commissioners with the FEC. On September 17, they both received unanimous approval from the Senate Rules and Administration Committee. Ravel is the chair of the California Fair Political Practices Commission. Goodman is a partner with the law firm of LeClairRyan.

Without McGahn, the FEC has only four of the six required commissioners serving, all with expired terms.