An alert for municipal securities dealers concerning pay-to-play rules has been issued by a department of the Securities and Exchange Commission (SEC).

The SEC Office of Compliance Inspections and Examinations has released a National Examination Risk Alert summarizing observations and providing some guidance of pay-to-play compliance by firms engaged in municipal securities.

The alert identifies issues found “in the course of examinations regarding compliance by firms” subject to municipal securities pay-to-play prohibitions. Municipal Securities Rulemaking Board (MSRB) Rule G-37 prohibits certain political contributions for two years prior to engaging in a municipal securities business where a related official received contributions.

The alert details problems with recordkeeping, inaccurate filing of reports, and inadequate supervision by firms to ensure compliance with MSRB Rule G-37.

Additionally, the alert’s reporting staff “has observed facts that suggest that some firms may have engaged in municipal securities business with issuers within two years of their MFPs making [prohibited] contributions.”

The full report can be found at http://www.sec.gov/about/offices/ocie/riskalert-munipaytoplay.pdf.

During a Rules Committee hearing, the U.S. Senate considered a bill requiring senators to file electronically with the Federal Election Commission, just as members of the House of Representatives and presidential candidates do. The bill, called the Senate Campaign Disclosure Parity Act, was sponsored by Sen. Jon Tester (D-Mont.) and received support from Sen. Charles Schumer (D-N.Y.).

For full news coverage, be sure to read:

“Senate considers entering digital age for campaign filings” by Susan Davis in USA Today.

“Schumer: Senators should file campaign reports electronically” by Tom Brune in Newsday.

Image of the Seal of the United States Senate by Ipankonin on Wikipedia.

1797-1801   John Adams*

1825-1829   John Quincy Adams*

1837-1841   Martin Van Buren*

1841-1841   William Henry Harrison

1841-1845   John Tyler**

1845-1849   James Polk

1849-1850   Zachary Taylor

1850-1853   Millard Fillmore**

1853-1857   Franklin Pierce

1857-1861   James Buchanan

1865-1869   Andrew Johnson

1877-1881   Rutherford Hayes

1881-1881   James Garfield

1881-1885   Chester A. Arthur

1885-1889   Grover Cleveland ****

1889-1893   Benjamin Harrison*

1909-1913   William Taft*

1921-1923   Warren Harding

1929-1933   Herbert Hoover*

1961-1963   John Kennedy

1974-1977   Gerald Ford**

1977-1981   Jimmy Carter*

1989-1993   George H.W. Bush*

2016-2020   Donald J. Trump*****

2020-2024   Joseph R. Biden***

* Ran for re-election unsuccessfully

** John Tyler, Millard Fillmore, Andrew Johnson, Chester Arthur and Gerald Ford were never elected President.

*** Pulled out of the 2024 November General Election and his VP Kamala Harris ran in his place.

**** Ran for re-election unsuccessfully – 1889.  Then ran successfully in 1897.

*****  Ran for re-election unsuccessfully – 2020 .  Then ran successfully in 2024.

Updated:  November 6, 2024

There still might be a few of you out there who remember before BCRA and HLOGA, when we only needed to submit a quarter of a page card as our federal lobbying report. Those were the days, my friend!

These days you need to clear your schedule so you can:

1. Compile and track activity in accordance with your organization’s needs;
2. Conduct extensive outreach and follow up to capture applicable expenses/costs;
3. Obtain salaries of all employees engaged in lobbying activities—whether registered or not;
4. Respond to questions about reporting requirements;
5. Provide definitions for determining applicability;
6. Institute tracking mechanisms for Issues and Agency contacts;
7. Coordinate with outside consultants to ensure accurate reporting;
8. Coordinate LD-203 filing process;
9. Prepare documentation in case of an audit; and
10. File the report.

What??? You are not doing this? You are guesstimating! Tell me that is not the case.

If you are in DC you have probably seen me with Rebecca South, Federal Compliance Associate. She has created an amazing program to help the top Fortune 500 companies insure timely and accurate compliance for the LD-2 and LD-203 reports. If we can help alleviate your quarterly headaches, please feel free to contact her at rsouth@stateandfed.com.

Until next month, remember the LD-2 isn’t the only report due in April. According to our Key Dates chart, there are 112 lobbying/employer reports due in this country’s states, counties, and cities.

Federal: “Lawmakers profit from positions in Congress” by Gary Martin in the San Antonio Express-News.

Federal: “Ethics committee: Sen. Vitter of Louisiana violated public trust in blocking Salazar salary” by The Associated Press in The Washington Post.

Florida: “Senate to decide punishment on Norman ethics violation” by Brittany Davis in the Miami Herald.

Idaho: “Idaho Senate approves series of new ethics rules” by Alex Morrell and Todd Dvorak (Associated Press) in the Idaho Statesman.

Mississippi: “Lawmaker appeals $346K ethics violation order” in The Clarion-Ledger.

New York:  “APNewsBreak: NY board won’t disclose hire record” by The Associated Press in The Wall Street Journal.

Ohio:  “Cleveland lawmaker requests legislative group’s financial records after recent bribery charge” by Joe Guillen in The Plain Dealer.

South Carolina: “Blame enough to go around for ethics rank” in the Orangeburg Times and Democrat.

Texas: “Two-thirds of Texas congressional delegation named in report on ethics lapses” by Gary Martin in the Houston Chronicle.

Federal: “Trade group CEOs enjoy hefty pay raises in a sluggish economy” by William McQuillen and Danielle Ivory in The Washington Post.

Federal: “GAO: Lobbyist disclosure compliance ‘similar’ compared to prior years” by Rachel Leven in The Hill.

Federal: “Calif. biotech firms spend $40 million on lobbying in 3 years” by Bernice Yeung on CaliforniaWatch.org.

Federal: “Tech companies new lobbying force in DC” by Garrett Sloane in the New York Post.

New Jersey: “Some of Christie’s biggest bills match model legislation from D.C. group called ALEC” by Salvador Rizzo in the Star-Ledger.

Utah: “Rolly: Lobbyist and legislator in one? Could happen” by Paul Rolly in the Salt Lake Tribune.

“Federal judge says Federal Election Commission went too far in shielding campaign ad donors” by The Associated Press in the Washington Post.

“US Joins Countries Not Enforcing Campaign-Finance Regulations” by Samuel Rubenfeld in the Wall Street Journal.

Connecticut: “Governor’s controversial campaign finance fix rejected” by Mark Pazniokas on CTMirror.com.

New York: “Albany to begin Act II of legislative session” by Jon Campbell in the Lower Hudson Journal News. Campaign finance will be on the agenda.

Federal: “Two SEC Commissioners Could Dramatically Change Campaign Finance” by George Zornick in The Nation. ↬via Eric Brown’s Political Activity Law blog.

California: “State political watchdog ramps up enforcement” by Brian Joseph in the Orange County Register.

Connecticut: “Connecticut legislators set focus on campaign finance reform; look to increase transparency” by Jordan Fenster in The Register Citizen.

District of Columbia: “Campaign money orders to cease?” by Jim McElhatton and Luke Rosiak in the Washington Times.

District of Columbia: “D.C. ethics law overhaul hampered by hiring difficulties, enforcement duties” by Mike DeBonis in The Washington Post.

A committee hearing is scheduled this week in the Senate to examine its version of the DISCLOSE Act of 2012.

Introduced last week, Senate Bill 2219, also entitled “Democracy Is Strengthened by Casting Light On Spending in Elections Act of 2012”, amends the Federal Election Campaign Act of 1971 to provide for additional disclosure requirements for corporations, labor organizations, Super PACs, and other entities.

A House version of the bill, H.R. 4010, introduced in February, revives a previously failed effort in 2010 to pass the legislation.

The Senate Bill 2219 hearing with the Senate Committee on Rules and Administration is scheduled for Thursday March 29 at 10 a.m.

An advisory opinion request seeking to end the current aggregate limit on the contributions an individual may make to federal candidates has been made to the Federal Election Commission.

The request, made on behalf of Shaun McCutcheon, seeks to allow him to make political contributions to several federal candidates that would exceed the two-year aggregate limit currently set at $46,200 as provided in 2 U.S.C §441a(a)(3)(A).

The primary argument in the advisory opinion request argues the limit is unconstitutional because it violates a citizen’s right to speak and to associate with not just any candidate, but every candidate of his choosing.

If the FEC grants the request, Mr. McCutcheon plans to contribute amounts of $2,500 and $1,776 to 26 federal candidates

In the spring of 2011, a draft presidential executive order was leaked to the public. The order would require every entity submitting offers for federal contracts to disclose certain political contributions and expenditures made within the two years prior to submission of their offer. The disclosure requirement included contributions made to federal candidates, parties, and committees by the bidding entity, its officers, and any affiliates or subsidiaries within its control. Contributions made to parties for independent expenditures and electioneering communications would also be reported. These disclosures would be required whenever the aggregate amount of the contributions and expenditures by the bidding entity exceed $5,000.

Reaction to the order was swift. The U.S. Chamber of Commerce, writing on behalf of a coalition of more than 80 business groups and trade associations, strongly protested the proposed executive order. Meanwhile, a letter in support of the order, signed by more than 30 public interest groups, urged full disclosure of campaign contributions and expenditures by federal government contractors. U.S. Representative Anna G. Eshoo sent a letter to President Obama, signed by more than 60 members of the House, in support of the proposed executive order.

The House Committee on Oversight and Government Reform and the House Small Business Committee held a joint hearing to examine the order, evaluate its impact and consequences on the federal acquisition system, and determine whether it introduced politics into the procurement process. Bills opposing the proposed order were introduced in both the House and the Senate. Finally, a compromise amendment, precluding an executive agency from requiring a vendor bidding on a contract to disclose political contributions, was added to the National Defense Authorization Act for Fiscal 2012. The act passed and was signed by President Obama at the end of 2011.

Passage of the bill did not end calls for disclosures of political contributions from federal contractors, however. Petitions with more than 100,000 signatures were submitted by Public Citizen and MoveOn.org to the White House, urging the President to require federal contractors to disclose their political contributions after the bidding process is completed and a federal contract is awarded.

Petitions with more than 100,000 signatures have been submitted to the White House urging the president to require federal contractors to disclose political contributions.

Last spring a leaked draft executive order requiring vendors submitting offers for federal contracts to disclose political contributions and expenditures resulted in both fervent support and opposition. A compromise amendment was inserted into the 565-page National Defense Authorization Act for Fiscal 2012, which passed in December, precluding federal agencies from requiring vendors bidding on federal contracts to disclose political contributions.

In their press release arguing for full transparency of corporate political spending, Public Citizen and MoveOn.org explained its petitions are asking for disclosures after the contracts are awarded.

For previous articles on Lobby Comply by George Ticoras on this topic, you can read posts from May 10, May 12, May 20, June 1, July 28, 2011, and January 5, 2012.

Photo of the The White House by UpstateNYer on Wikipedia.

A tradition which began in 1923 under President Coolidge is still going strong in its 89th year. On December 1st, the National Christmas Tree was lit celebrating the beginning of the holiday season.

The Obama family began a new tradition this year as this year’s tree replaces one that was part of the national tradition for 30 years, until it was lost in a storm February of this year. The new tree measures 26 feet, 4 inches and is still growing.

After the Lighting of the National Christmas Tree, the Pathway of Peace begins. The Pathway, featuring trees representing the states and territories of the United States, also includes a number of musical performances and runs from December 6th to December 23rd.

Before the Obama family lit the tree, The First Lady joined by Kermit the Frog read “Twas the Night Before Christmas” to the crowd and President Obama shared a few short remarks about what the holidays mean to him.

Even a family as busy as the Obama’s, as well as other D.C. notables, find time to maintain Chrismas traditions. Holiday traditions are what make this time of the year memorable and special, so try to make time for them no matter how busy you are.

Happy Holidays Everyone!

A report compiled by the General Services Administration shows that nearly one-fifth of federal Web domains are inactive and one-fourth redirect to other dot-gov sites.

The report was released as a part of the GSA’s dot-gov reform initiative which is part of President Obama’s Campaign to Cut Waste, identifying unnecessary websites that can be consolidated into other websites to reduce costs and improve the quality of service to the American public. It is a goal of the GSA to significantly cut down the number of federal websites and create a more cohesive and standardized look to the remaining federal websites which will also help improve the government’s customer service.

Although agencies have failed to maintain many of their dot-gov domains, they have announced plans to shut down 26% of dot-gov domains, and merge 4% of domains into other domains.

To learn more, read Only half of dot-gov sites are active, GSA reports by Joseph Marks.