New York’s City Council passed legislation this week containing many changes to lobbying regulations. The majority of the law’s provisions take effect May 8, 2014.

As part of the new law, the definition of “lobbying” has been expanded to include attempts to influence “any determination made by an elected city official or an officer of employee of the city to support or oppose any state or federal legislation, rule or regulation.”

This provision is unique because very few cities regulate lobbying a city official to weigh in on state or federal policy. The new law also directs the City Clerk to search for noncompliance with registration requirements by scouring public records.

Further, lobbyists will be required to file six periodic reports each year, up from four reports under the outgoing law. Also, as of January 1, 2014, the registration threshold will increase from $2,000 to $5,000 per calendar year.

Photo of Manhattan by AngMoKio in Wikimedia Commons.

The Joint Commission on Public Ethics is performing maintenance on its Lobbying Online Filing System beginning today.

The system will not be accessible starting Friday at 4 p.m. through Monday until 8:00 a.m.

Filers will be unable to log into the system and no electronic filings or amendments will be accepted while the system is down.

Also, the data contained in the system will not be accessible by the public during the shutdown.

The Second Circuit Court of Appeals has reversed a District Court ruling, denying a preliminary injunction on campaign contributions to independent-expenditure PACs. The lawsuit was filed by New York Progress and Protection PAC, who alleged that a wealthy donor, Shaun McCutcheon, pledged to donate $200,000 to the PAC in support of Joseph J. Lhota, a NYC mayoral candidate. McCutcheon’s donation, however, would exceed the contribution limit of $150,000 to independent-expenditure committees set by New York law.

The Circuit Court granted the injunction, stating the contribution limits are “likely unconstitutional” and the claim has a substantial likelihood of success. The Court further noted the plaintiffs would face irreparable harm if the injunction was not granted.

The donor in question, Shaun McCutcheon, is also embroiled in a similar suit before the Supreme Court of the United States, challenging the federal limits to campaign contributions.

Democratic mayoral candidate William Thompson conceded and threw his support behind leading vote-getter and fellow Democrat Bill de Blasio.

However, because Thompson failed to withdraw from the race by the September 13 deadline, the mayoral runoff will continue to appear on the runoff ballot.

The runoff election is set for October 1, 2013.

De Blasio will face Republican Joe Lhota in the November 5 general election.

Photo of the New York City skyline by AngMoKio on Wikimedia Commons.

Several members of city council announced the introduction of legislation to reform independent expenditures made in the city. The legislation would close a “loophole” in state campaign finance law allowing limited liability companies to give at the individual aggregate contribution limit of $150,000 instead of the corporate aggregate limit of $5,000. Such a change would only apply to city elections.

The legislation would also require the disclosure of the top donors to independent expenditure communications.

Finally, the legislation would force any independent expenditure communication to inform voters the communication was not subject to the city’s campaign finance laws.

Photo of the New York City Hall by Momos on Wikipedia.

First there was Arthur Branch. Then came Jack McCoy. Now it’s Charles Hynes’ turn to star as a New York City district attorney on the small screen. Only Hynes is not an actor or a character, he is an actual district attorney who is in the middle of a fierce campaign to keep his job. And his main opponent for the Democratic nomination is crying foul.

Abe George is suing Hynes, his committee, and CBS in New York over what he calls illegal campaign contributions. CBS is producing and has aired the first episode in a six-part reality series titled Brooklyn D.A. This reality series will follow Hynes and the rest of the Kings County District Attorney’s Office as they do their job for the cameras.

George is not pleased with the free publicity Hynes will be receiving since they are in a heated campaign to garner the Democratic nomination for the position. He believes the air time should be considered a campaign contribution, and with the series’ value over the $5,000 limit, he believes it is an illegal contribution.

Hynes has been the district attorney in the county since 1989, and George believes he is willing to do anything to stay in power. “[He] has been the Brooklyn district attorney since 1989 and has operated under a mounting public perception that he will do anything, including misusing his broad prosecutorial powers, to achieve political gain for himself.”

CBS disagrees with George’s assertion and refuses to stop airing the show.

Sonya McNair, spokeswoman for CBS News, said, “We are surprised that this candidate would not know about the First Amendment. This is obviously a publicity push by a politician.”

For what it’s worth, Hynes believes this show will guarantee a victory for his campaign. He said, “If they couldn’t take me out then, boy, you’ll never be able to take me out now.”

The next episode of Brooklyn D.A. airs Tuesday, May 28, at 10:00 p.m. on CBS.

Photo of Charles Hynes courtesy of the Metropolitan Transportation Authority of the State of New York on Wikipedia.

The New York City Campaign Finance Board scored a huge win in the courts Friday. Republican mayoral candidate George McDonald had sued the city in hopes of eliminating the city’s strict contribution limits and attempt to bring them in line with the state’s limits. However, the Manhattan court said the city’s contribution limits are legal and reasonable to keep money from influencing elections.

Judge Kathryn Freed, who gave the decision for the court, held, “The court finds that the establishment of uniform limitations on both participating and non-participating candidates is reasonably related and calculated to achieve the goals of reducing the influence of ‘wealthy special interests’ over local elections, and increasing public participation and public confidence in those elections, is well within the powers granted to the City to protect the welfare and well being of its citizens.”

McDonald recently announced that he would join the voluntary public financing system and would conform to the current contribution limits, but promised to keep his fight up in court. McDonald still has the option of appealing this decision, but declined to say whether he would. He was disheartened in the entries process, saying “It’s disappointing that it took 147 days to ‘just say no’ in long form.”

McDonald is the underdog in a three-way battle for the Republican nomination with Joe Lhota and John Catsimatidis. The primary election for the mayor’s office, and all other city offices, is September 10.

The New York Joint Commission on Public Ethics (JCOPE) unveiled proposed changes to the ethics rules Tuesday, which could make it easier for lobbyists to conceal their donors and funders from the public. At its monthly meeting, JCOPE proposed changes to the gift regulations and the recently enacted source of funding regulations.

Under the source of funding regulations, lobbyists must disclose the names of anybody who provided them with funding in excess of $5,000 for lobbying purposes, but only if they meet a certain threshold. The current rules allow for a waiver of this requirement only if there is a substantial likelihood of harm. Under the proposed change, JCOPE would lower the standard to a reasonable likelihood or probability of harm.

Executive Director Ellen Biben said the current standard may be unconstitutional, thus necessitating the change. “The substantial likelihood standard may be constitutionally too high,” Biben said. “We agree.”

In the proposed change to the gift ban, JCOPE puts a concrete dollar amount on the term “nominal value.” Under current law, a lobbyist is prohibited from giving a gift to a public official and gift is defined as something worth more than nominal value. However, there is no dollar figure attached to the current definition of nominal value.

Under the proposed definition, nominal value will be defined as an item or service with a value of $10 or less. Therefore, if the proposed change is enacted, lobbyists will be prohibited from giving a public official a gift with a value in excess of $10.

In order for the rules to go into effect, JCOPE commissioners must approve the proposals. There is no set time table on when the commissioners will review the proposals and make a decision on their enactment.

The New York City Campaign Finance Board scored a decisive court victory when a court ruled in favor of the city’s campaign finance laws. United States District Court Judge Laura Taylor Swain upheld the city’s provisions limiting the amount of public funds available to candidates who do not face meaningful competition.

This provision, dubbed the “sure winners” provisions by the Campaign Finance Board, was under attack in Ognibene v. Parkes, a suit filed in 2008. In a non-competitive race, the city is allowed to withhold public funds from a candidate. The candidate may appeal that decision, claiming they face a significant opposition based on a set of objective criteria.

Examples of the criteria used include the opponent’s endorsements and the media coverage of the opponent. The court did say that the city could not use the opponent’s financial activity as criteria for the appeals process, but overall it was a clear victory for the Campaign Finance Board.

Amy Loprest, executive director of the Campaign Finance Board, said “This victory allows the CFB to hold on to an important tool for maintaining public confidence in the city’s campaign finance program.”

Neither party has any intentions of appealing the District Court’s ruling, effectively ending the suit after nearly five years.

Photo of Manhattan courtesy of AngMoKio on Wikipedia.

Governor Andrew Cuomo has made a bold move; a move he hopes will slow down the corruption emanating from New York City. Governor Cuomo has decided not to call a special election to replace Assemblyman Nelson Castro’s seat representing the Bronx. Instead, the election to replace Castro will take place during the regularly scheduled city elections this November.

Castro resigned from his state Assembly seat as part of a deal made with prosecutors investigating public corruption in the Bronx.

Cuomo decided against the special election as way to quell the corruption taking place the city. Had Cuomo scheduled a special election, the Democrats would have had free reign to choose the successor, because the Bronx Democratic leader, Carl Hestie, would have been the one picking the candidate for his party. In the open primary, scheduled for September 10, outsiders have a much better chance at securing the Democratic nod.

Cuomo said, “Having the election during the already scheduled New York City elections, instead of calling a special election, will ensure maximum participation from the constituents of the 86th Assembly District and be the most cost-effective for taxpayers.”

Photo of Governor Cuomo courtesy of Pat Arnow on Wikipedia.

New York City mayoral candidate George McDonald has momentarily thrown up the white flag in his attempt to circumvent the contribution limits. McDonald, who is running for the Republican nomination, filed suit against the New York City Campaign Finance Board in hope of removing the city’s very strict contribution limits.

McDonald’s argument relied on the theory that the state’s contribution limits, which are higher than the city’s limits, superseded the city’s restrictions. McDonald had hoped for a quick resolution, but the court has taken nearly a month to decide the case and McDonald fears he is running low on time.

McDonald now plans on raising enough funds to qualify for the public financing system, meaning he will have to raise at least $250,000 from donations of up to $175. If he is able to do that, the city will give his campaign $1.5 million.

McDonald is considered a long shot to win the Republican nod as he is going up against a political veteran, Joseph Lhota, and a billionaire businessman, John A. Catsimatidis. McDonald has argued that the city’s laws give these two types of candidates an unfair advantage over first-time candidates.

McDonald’s lawsuit still must be decided by the court, but most experts believe he has little chance of winning.

Image of the flag of New York courtesy of Wikipedia.

The New York City Council has overridden Mayor Michael Bloomberg’s veto of a campaign finance bill loosening the disclosure requirements. The law, which will go into effect immediately, was fiercely opposed by both Bloomberg and New York City Campaign Finance Board Director Amy Loprest, but the City Council has nearly unanimously supported it from the outset.

The law will allow labor or other membership organizations, as well as corporations, to send campaign communications to its members, executive and administrative personnel, and stockholders without having to disclose that information to the Campaign Finance Board. According to Loprest, $35,000 in outside spending on mass mailers was spent in the two special elections since the city adopted its stringent rules.

In a statement Loprest said, “Disclosure helps voters understand who is speaking and trying to influence the outcome of their election. Just as important, disclosure helps voters hold candidates accountable for their supporters during an election and for the policies they pursue. New Yorkers want and deserve access to complete information about the interests supporting candidates for city office. The legislation approved by the Council today will hide some of that information from public view.”

Councilwoman Gale Brewer disagreed with this notion, saying “Member-to-member communications are not intended to influence the public. So, the public’s interest in source disclosure is significantly reduced.”

With city elections upcoming in November, both sides will see how these new rules actually affect the elections and spending.

Photo of the New York City Hall by Howrealisreal on Wikipedia.

New York City Mayor Michael Bloomberg vetoed a campaign finance bill aimed at decreasing campaign finance disclosure, even though City Council overwhelmingly passed the bill by a 47-1 margin in January. The bill would have allowed labor or other membership organizations, as well as corporations, to send communications to its members, executive and administrative personnel, and stockholders without having to disclose that information to the Campaign Finance Board.

Bloomberg was noncommittal at the time about whether he would veto the bill, even though he was adamantly opposed to its passage. However, now with his decision to veto it, the ball will bounce back into the City Council’s court.

The council has 30 days to override the veto, with a two-thirds majority required, or allow the bill to die. The council had enough votes to override the veto originally, but there has been no word on whether every council member will stick with his or her original vote.

Photo of Mayor Michael Bloomberg by Rubenstein on Wikipedia.

The New York Joint Commission on Public Ethics (JCOPE) is currently in the process of developing draft regulations for the state’s gift laws. These draft regulations will attempt to provide clarity and guidance to those regulated by the commission.

The draft regulations concerning gifts given by lobbyists allow lobbyists to follow a step-by-step guide to determine whether he or she is allowed to legally give the gift. JCOPE is accepting written comments on the draft regulations until February 15, 2013. JCOPE will then use those written comments to draft proposed regulations.

Updated February 13, 2013: The New York Joint Commission on Public Ethics has extended the deadline to submit written comments on the draft regulations to March 8, 2013.