Denver City Council is attempting to close a loophole allowing campaign spending to go unreported if not coordinated directly with a candidate’s campaign.

The measure would adopt the state definitions of independent expenditure and electioneering communication. It would also require individuals or entities making independent expenditures to file a report within two days of spending more than $1,000, itemize all contributions received exceeding $25, and clearly identify the source of funding for any paid advertising.

If the bill passes, other changes to city campaign finance laws would include differentiation between issue committees and other political committees, as well as a requirement for quarterly reports in the calendar year before an election and additional reporting in the weeks leading up to an election.

Council has scheduled a final vote for Sept. 11.

On August 20, new pay-to-play regulations of the Financial Industry Regulatory Authority (FINRA) take effect. FINRA Rule 2030 restricts contributions made to an official of a government entity being provided investment advisory services or being engaged to provide investment advisory services by certain parties.

The rule applies to broker-dealers, placement agents, and covered associates acting on behalf of certain regulated investment advisors or soliciting a government entity to invest in certain pooled investment vehicles.

The restrictions also prohibit soliciting a political action committee to make contributions or doing anything indirectly that, if done directly, would result in a violation of the rules. Another rule effective on the same date is FINRA Rule 4580, which mandates certain record-keeping requirements concerning related contributions.

National:

Need a Job? Bob Brady and the Art of the Political Buyout
Philadelphia Inquirer – Andrew Seidman and Jeremy Roebuck | Published: 7/30/2017

Prosecutors’ allegations that U.S. Rep. Robert Brady’s 2012 campaign paid a challenger $90,000 to drop out of the race may seem like a particularly brazen power play. Such transactions may look like backroom dealing, but campaign finance experts agree the line between the simply unseemly and the outright illegal can be difficult to determine. “Rarely are these situations an explicit quid pro quo: ‘I’ll give you money so you’ll drop out,'” said Kenneth Gross, who heads the political law practice at Skadden, Arps, Slate, Meagher & Flom. “But there are many shades of gray. There are often agreements to help a candidate retire [campaign] debt.”

Federal:

Democrats Introduce Bill to Strengthen Foreign Agents Law
Bloomberg BNA – Kenneth Doyle | Published: 7/31/2017

A new Senate bill would increase the U.S. Justice Department’s authority to impose civil fines people who do not comply with the Foreign Agent Lobbying Transparency Enforcement Act, which requires individuals working on behalf of a foreign government or official to register with the Justice Department within 10 days of signing a contract. In addition to fines, the legislation from Senate Democrats would create even more requirements for foreign agents. The registration laws on foreign lobbying are routinely flouted, according to Justice Department Inspector General Michael Horowitz.

Jared Kushner Stepped Down from 266 ‘Corporate Positions.’ What Does That Mean?
Washington Post – Jena McGregor | Published: 8/1/2017

In Donald Trump’s White House, Jared Kushner has many jobs. The president’s son-in-law is a senior adviser to Trump, has been charged with leading the administration’s revamping of the federal bureaucracy, and has a foreign policy portfolio that includes Mexico and the Middle East. But counting up the titles he stepped down from leading up to Trump’s inauguration, and the number looked to some, at first glance, as even more eye-popping. In a recent story following the release of his financial disclosures, it was reported Kushner had “resigned from 266 corporate positions.” Some on social media were scratching their heads. How does one person hold more than 250 positions?

No Going Back: Anthony Scaramucci’s White House job could cost him $7.5 million
USA Today – Gregory Korte | Published: 8/3/2017

Anthony Scaramucci took no salary during his short tenure as White House communication director, yet his 10-day career detour could end up costing him more than $7.5 million. That is because the hedge fund founder left the White House before he could obtain a “certificate of divestiture” giving him the special tax treatment available to federal employees who give up assets in order to avoid conflicts-of-interest. Without that certificate, the sale of Scaramucci’s Skybridge Capital to a Chinese holding company will be taxed at the capital gains rate of 15 percent. According to Scaramucci’s financial disclosure report, his share of the sale is worth at least $50 million; other estimates put that number even higher.

Trump Loyalist Mixes Businesses and Access at ‘Advisory’ Firm
New York Times – Nicholas Confessore and Kenneth Vogel | Published: 8/1/2017

Corey Lewandowski, Donald Trump’s former campaign chairperson, left the K Street firm he helped to establish amid scrutiny over his clients and his access to the president. Lewandowski then started a new consulting business. Now, as he takes on an increasingly broad role as an unofficial White House adviser, he is building a roster of clients with major interests before the Trump administration. Lewandowski appears to be positioning his new firm as an “advisory” business, part of a growing cohort of Washington, D.C. influencers who advise companies on how to navigate the government but do not register as lobbyists or disclose their clients.

From the States and Municipalities:

California: Anaheim City Council Passes County’s Toughest Restrictions on Lobbying
Orange County Register – Joseph Pimentel | Published: 8/1/2017

The Anaheim City Council voted to approve a bill that requires paid lobbyists to register with the city and file quarterly reports, and prohibits the city from hiring people from lobbying firms. Anaheim elected officials and workers also will be barred from lobbying the city for two years after they leave their government jobs. The ordinance defines a lobbyist as anyone who receives $500 or more a month to communicate with city officials for the purpose of influencing legislative or administrative actions. The council needs to take a second vote on the ordinance, slated for August 15, before it goes into effect.

California: San Diego Boosts Qualifications for Ethics Commission Members
San Diego Union-Tribune – David Garrick | Published: 8/1/2017

The city council approved four changes that aim to boost the experience and expertise of San Diego Ethics Commission members. The council amended the commission’s rules to say “priority consideration” will be given to nominees familiar with campaign finance laws, government ethics, lobbying laws, and conflict-of-interest regulations. In addition, the council clarified that rules prohibiting commission members from seeking elective office in the city do not extend to seeking other offices, such as county supervisor or the state Legislature. In September, the council is scheduled to consider amending a rule that prohibits anyone who ran for office against a current member of the council from being appointed to the commission.

Colorado: Walker Stapleton Found a Way Around Governor’s Race Donation Limits – It’s Raising Money and Eyebrows
Denver Post – Mark Matthews | Published: 8/3/2017

The longer that state Treasurer Walker Stapleton waits before formally announcing his bid for governor of Colorado, the more he can help steer unlimited sums of money toward a super PAC-style group that is expected to provide his major funding during the campaign. It is a setup that watchdogs said could stretch the limits of the state’s election law, even as it projects Stapleton’s fundraising might. And it is another sign that the 2018 race to replace Gov. John Hickenlooper is likely to surpass spending records in Colorado’s gubernatorial elections.

Maryland: Marijuana Experts Scored Prospective Md. Pot Businesses. Some Had Ties to Them.
Washington Post – Fenit Nirappil and Aaron Gregg | Published: 7/30/2017

Several of the independent experts hired to review applications to open medical marijuana businesses in Maryland had ties to companies whose materials they reviewed. The Maryland Medical Cannabis Commission said it is investigating these potential conflicts of interest. The connections, which The Washington Post discovered after a public records request, raise new questions about how the state tried to avoid conflicts in setting up a legal marijuana industry where hundreds of businesses were competing intensely for a limited number of growing, processing, and selling licenses.

Missouri: Greitens Faces More ‘Dark Money’ Questions Over No-Bid Contract with Express Scripts
Kansas City Star – Jason Hancock | Published: 7/28/2017

When Missouri Gov. Eric Greitens issued an executive order creating a prescription drug monitoring program, he said his goal was to help combat the scourge of opioid addiction in the state. His critics quickly homed in on another detail: to start the program, Greitens’ administration was giving a no-bid contract  to Express Scripts, a St. Louis-based pharmacy benefits management company that donated an undisclosed amount of money to the governor’s inauguration. It has become a familiar accusation, one that has dogged Greitens throughout his nearly eight months in office – that secret campaign contributions could be influencing his actions. Critics say this is the unavoidable byproduct of the governor’s reliance on so-called dark money.

Missouri: Lobbyist Gifts Averaging $1,760 Per Missouri Lawmaker – Less Than Year Before
Kansas City Star – Jason Hancock and Kelsey Ryan | Published: 8/3/2017

Lobbyists reported giving Missouri lawmakers and their staff members $347,368 in gifts from during the first six months of this year, which is less than the same period in 2016. Lobbyist gifts have declined every year since 2013. Observers point to numerous factors contributing to the decline, from increased public scrutiny on the practice to a series of embarrassing legislative scandals two years ago. Regardless of the reason, reform advocates say the drop is a sign that the tide is turning and lobbyist gifts are increasingly seen as a potential political liability.

Pennsylvania: Firms to Pay $9M to Feds to Resolve LCB Payola Case
PennLive.com – Mike Miller | Published: 7/27/2017

Four suppliers of alcohol to the state-owned system of liquor stores agreed to pay about $9 million in penalties for providing gifts to Pennsylvania Liquor Control Board officials. The U.S. attorney’s office in Harrisburg said the vendors, in turn, will not be prosecuted. Southern Glazer’s Wine and Spirits of Pennsylvania will pay $5 million for giving cash, all-expenses paid trips, and tickets to shows and sporting events to board officials from 2000 to 2012. Breakthru Beverage Pennsylvania, formerly Capital Wine and Spirits, and White Rock Distilleries will pay $2 million each for giving away gift cards, tickets, meals, and entertainment to the officials. Pio Imports will pay $200,000 for handing out gift cards to officials.

State and Federal Communications produces a weekly summary of national news, offering more than 60 articles per week focused on ethics, lobbying, and campaign finance.

Wisconsin State Sen. Chris Larson is introducing eight bills aimed at amending state campaign finance laws.

The bills would restore lower contribution limits, amend the definition of political action committee, require transparency in political communications, limit coordinated campaign expenditures, expand reporting requirements for committees receiving a contribution exceeding $100 from an individual, and prohibit corporations and labor unions from contributing to segregated funds established by political parties or legislative campaign committees.

Larson says the proposed changes reflect common sense and would not drastically overhaul the current campaign finance system.

On May 31, legislation was introduced in the Federal Parliament of Canada to increase transparency concerning political fundraising events.

House Government Bill C-50 requires a five-day advance notice of fundraisers where the admission price is $200 or more. A regulated fundraising event does not include a convention, including leadership conventions, of a registered party or a leadership contestants’ debate. The bill requires political parties file itemized reports to Elections Canada within 30 days of a fundraiser, including information such as the attendants’ names and amounts contributed. If a regulated fundraising event is organized entirely by persons or entities other than a registered party, the person or entity must provide the attendants and donation information to the registered party in time for the registered party to make its report.

The bill’s regulations would not apply if a fundraiser takes place during the election period of a general election.

Parts of a campaign finance law approved by Missouri voters in November have been ruled unconstitutional.

U.S. District Court Senior Judge Ortrie Smith issued a ruling Friday finding corporations and labor organizations must be permitted to make contributions to campaign committees only supporting or opposing ballot measures, and political action committees must be able to receive contributions from other political action committees.

The court also ruled the ban on contributions to PACs by heavily regulated entities unconstitutional.

Finally, the ruling permanently enjoins the Missouri Ethics Commission from interpreting certain campaign finance provisions in any manner inconsistent with previously issued advisory opinions. Contribution limits will continue to apply only to contributions to candidates unless a contribution to a continuing committee or PAC is restricted or designated for a specific candidate.

The court stayed any injunctive relief ordered for 45 days to allow the state to review the ruling and to allow for an opportunity to appeal.

Among the amendments in the 2017 Consolidated Appropriations Act that passed into law on May 5 are two provisions affecting campaign financing.

House Resolution 244 explicitly prohibits the Internal Revenue Service from making new rules concerning the political speech or activity of 501(c)(4) organizations. The legislation also prohibits the Securities and Exchange Commission from finalizing, issuing, or implementing any rule, regulation, or order regarding the disclosure of political contributions, contributions to tax exempt organizations, or dues paid to trade associations.

The 708 page omnibus spending bill, passed by Congress on May 4 and signed by the president on May 5, funds the U.S. government through September 30.

Gov. Matt Bevin approved changes to a campaign finance law yesterday, March 27, 2017.

Senate Bill 75 doubles current contribution limits for individuals giving to candidates, state executive committees, and caucus campaign committees. The limit for individuals giving to PACs also increases from $1,500 to $2,000.

Contributions to candidates and PACs will be indexed for inflation every odd-numbered year based on the Consumer Price Index. The bill also creates a single reporting threshold of $3,000 for campaign finance reports.

The bill is effective June 28, 2017, or 90 days from adjournment sine die of the regular session of the Legislature.

On March 27, the West Virginia Senate voted to approve a bill to overhaul campaign finance laws.

Senate Bill 539 will raise campaign contribution limits to allow individuals to donate up to $2,700 to candidates for statewide office per election cycle. Individuals would also be able to contribute up to $5,000 to PACs per year and $10,000 to state parties and caucus campaign committees per year.

The bill also proposes changes to disclosure requirements, allowing citizens to donate up to $1,000 to certain PACs that do not donate to individual candidates or their committees before the donor’s identity must be disclosed.

The bill now moves to the House for consideration.

The Ohio Secretary of State Campaign Finance Division recently released revised contribution limits. The new limits are effective February 25, 2017, through February 24, 2019.

Among the changes, the limit individuals, political action committees (PACs), and political contributing entities (PCEs) may give to statewide or state legislative candidates increased from $12,532.34 per election period to $12,707.79 per election period.

The secretary of state adjusts statutory contribution limits in each odd-numbered year based on the Consumer Price Index. 

Political Contributions Compliance Laws for Government Relations Professionals, provides reference information on what political contribution activities are allowed, and not allowed, under various laws at every government level.

This online database has information for every jurisdiction with precise listings and summaries of each state law, contribution limits and specific prohibitions, with full descriptions of registration and reporting requirements.

Learn more about all of the Online Publications for Government Relations Professionals from State and Federal Communications, or try a free demo today to see all the ways this online publication can help you in your political contribution compliance efforts.

Oral arguments were heard last week in a 2015 lawsuit filed in Massachusetts Suffolk County Superior Court challenging state laws allowing unions to make political contributions while barring corporations from doing the same.

The lawsuit is being brought by the Scharf-Norton Center for Constitutional Litigation at the Goldwater Institute on behalf of two state business corporations against Michael Sullivan, the director of the Office of Campaign and Political Finance (OCPF), which enforces the law. In 1A AUTO, INC. v Sullivan, the plaintiffs allege, “There is no legitimate justification for allowing unions to contribute thousands of dollars to candidates, parties, and political committees, while completely banning any contributions from businesses.” The plaintiffs argue the law violates “equal protection, free speech, and free association protected by the Massachusetts and United States constitutions” and are seeking a permanent injunction preventing the OCPF from enforcing the law banning corporate contributions.

Both parties made their arguments on December 7 in front of Judge Paul Wilson, who will decide the previously filed motions for summary judgement.

St. Louis Mayor Francis Slay recently signed Board Bill No. 53CSAA, establishing contribution limits for municipal candidates.

Effective November 25, 2016, no person, entity, or committee may contribute more than $10,000 to any local candidate during the general election period. The bill also establishes an ethics commission to investigate alleged campaign finance violations.

Any person violating campaign finance law will be subject to a fine of at least $100 but not more than $500 per violation, a term of imprisonment for 90 days per violation, or both.

Photo of Mayor Francis Slay by Astuishin on Wikimedia Commons.

Missouri State Auditor Nicole Galloway issued a report Monday revealing a potentially illegal checking account used by legislators to collect contributions from lobbying firms.

The account is purportedly used by the Senate to fund late-night meals during the legislative session. According to Galloway’s report, actively soliciting contributions from lobbyists is a conflict of interest.

Since the audit, Senate officials have vowed to find other ways to purchase meals as necessary.

Photo of State Auditor Nicole Galloway by Nicole Galloway for Missouri on Wikimedia Commons.