The Legislature quietly adjourned sine die on March 7 after passing a procurement and campaign finance bill.

House Bill 1471 modifies the state procurement procedures and revises definitions concerning competitive, sole source, convenience, and emergency goods and services contracts.

Senate Bill 5857 reorganizes the campaign disclosure and contributions statutes through technical amendments involving campaign disclosure and contributions at the state and local levels.

These bills will now be sent to the governor for his signature.

A bill to be introduced by Representative Matt Simpson would transfer oversight of public officials from the Ethics Commission to district attorneys and the attorney general.

The bill also allows for unlimited gifts from friends; allows officials to solicit gifts from subordinates; and greatly broadens the definition of family member.

The bill gives the Legislature control of the Ethics Commission, potentially impairing the commission’s ability to act impartially.

Following sentencing of former House Speaker Mike Madigan’s chief of staff, Secretary of State Alexi Giannoulias announced a series of ethics reforms to strengthen enforcement and require more transparency and disclosure regarding the financial dealings of lobbyists.

House Bill 4591 requires lobbyists to report compensation received from clients and gives the secretary of state more authority to investigate violations of the Lobbyist Registration Act.

The bill also would allow the secretary of state to investigate anyone who is lobbying but has not registered as a lobbyist.

The office could revoke, suspend, or bar a person from lobbying for up to one year if failing to file reports or pay a fine.

Lobbyists will be required to keep records for three years, up from two, or face possible revocation of their license.

Q: My employer makes corporate contributions in California. We have not yet exceeded $10,000 in calendar year 2024. The primary election is in March, along with the general election in the fall. If we decide to make contributions, when do we have a late contribution report due?

A: The California “Late Contribution Report” [Form 497], sometimes referred to as the “24-hour report” is due during the 90-day period preceding any election if all of the following criteria are met:

• The contribution is $1,000 or more, or multiple contributions aggregating $1,000 or more, to a single candidate, ballot measure committee, or political party. This includes non-monetary and in-kind contributions;
• The corporation making the contribution must have already qualified as a major donor or the contribution made during the 90-day period before the election puts it over the $10,000 threshold and it becomes a major donor; and
• The recipient candidate or ballot committee must appear on the ballot at the election for which the 90-day period applies.

Contributions to political parties made during the 90-day period are also included. Contributions to PACs are not.
We are currently in the 90-day period for the March 5 primary election. The 90-day period for the November 5 general election begins August 7. Currently, no special elections are scheduled, but if one is, this triggers a new 90-day period. Check with the Fair Political Practices Commission for the exact dates of the 90-day period.

The filing requirements for Form 497 are:

• The report is due within 24 hours of making the contribution. The contribution is made on the date it is mailed, hand-delivered, or otherwise transmitted to the candidate, ballot measure committee, or political party.
• The report must be filed electronically with the California Secretary of State, Political Reform Division. No paper report is required.
• If a report is due on a Saturday, Sunday, or official state holiday, the 24-hour deadline is extended to the next business day. However, the Form 497 must be filed within 24 hours on a Saturday, Sunday, or an official state holiday when the report is due the weekend immediately prior to an election. For example, if a donor makes a contribution on the Saturday before the election, the Form 497 is due on Sunday.

As a reminder, the late contribution must still be reported on the next major donor report that is due. In 2024, major donor reports are due July 31 for the period covering January 1 to June 30; and January 31, 2025, for the period covering July 1 to December 31.

For more information, be sure to check out the “Registration and Reports Required” section of the U.S. Political Contributions Compliance Laws online publication for California. Please feel free to contact us if you have any questions.

State business and labor groups have been working on legislation to limit campaign contributions in state races.

Oregon is one of just five states with no limits on political contributions.

These negotiations come as a proposal, known as Initiative Petition 9, has a chance of qualifying for the November ballot.

The petition would impose additional campaign finance disclosures and strict contribution limits for individuals, political parties, and interest groups.

A special election will be held on April 9 to fill the vacancy in House District 139 due to the death of Rep. Richard Smith in January.

A runoff is scheduled for May 7, if necessary.

Gov. Kathy Hochul issued a proclamation ordering a special election to fill the vacancy in the U.S. House of Representatives District 26 for the unexpired term of Rep. Brian Higgins.

The special election will be held on April 30.

Higgins, who announced his resignation citing frustrations about the growing dysfunction in Congress, will become president of Shea’s Performing Arts Center.

U.S. House District 26 covers parts of Erie and Niagara counties in western New York.

A new bill introduced into the West Virginia House of Representatives could repeal all state lobbying statutes and criminalizes the act of paying someone to influence any member of the Legislature.

House Bill 5402 could also criminalize the act of receiving money to influence any member of the Legislature.

Both acts would be considered a felony and will constitute a fine or, after no more than five infractions, imprisonment.

Lawmakers are convening a special session called by Gov. Tate Reeves to finalize a $10 billion economic project on January 25.

The project’s aim is to create two large scale data centers.

The name of the company will be announced after the session concludes.

This session is similar to a previous special session held last week for an equally impactful economic project.

As before, this special session could last as little as one day.

Gov. Kathy Hochul announced a special election will be held on Tuesday, February 13 to fill the vacancy in the 77th Assembly District.

The vacancy was created when Rep. Latoya Joyner resigned to pursue a different professional opportunity.

The winner of this election will serve the remainder of Joyner’s term ending in the fall.

Lawmakers are convening a special session called by Gov. Tate Reeves to finalize a huge economic project in an effort to bolster Mississippi’s job market and economy.

Reeves said the project will create 2,000 jobs in Marshall County with an average annual salary of $66,000.

The special session is occurring during the regular 2024 legislative session and is predicted to last only a single day.

Texas lobbying and campaign finance thresholds have increased to reflect changes in the consumer price index.

The thresholds for lobbyist compensation and reimbursement increased from $1,760 to $1,870.

Lobbyist expenditures increased from $810 to $820 per calendar quarter, not including expenditures for an individual’s travel, food, lodging, or membership dues.

If a lobbyist does not intend to exceed $2,150 during a calendar year in expenditures, the lobbyist may file an annual report due on January 10.

Salary reporting thresholds have also increased.

Compensation or reimbursement required to be reported must be reported as an exact amount if the compensation or reimbursement received exceeds $1,076,130.

Regarding campaign finance, a general-purpose and specific-purpose committee may not accept political contributions or expenditures totaling more than $1,050 without filing a campaign treasurer appointment.

Other changes include PAC contribution and expenditure report increases for the amount of political contributions from each person in the aggregate exceeding $110 during the reporting period; the amount of loans that exceed in the aggregate $140; and the amount of political expenditures that exceed in the aggregate $220.

Georgia is replacing its lobbyist e-filing system for 2024.

Clients and lobbyists will have to register, but only once in the new system.

Lobbyists will be able to reregister every year based on this initial registration and clients will only register once to establish their account.

Lobbyists are currently authorized to lobby on behalf of new clients they register while authorization approval is pending.

This ability to lobby on behalf of new clients while awaiting approval of clients is for calendar year 2024 only.

Due to the new system, the Ethics Commission has decided to not collect or assess late fees for lobbyists provided they make a concerted effort to file reports and comply with their reporting requirements until March 31.

A special election has been scheduled on February 13 for state Senate District 30.

The vacancy is due to the resignation of Sen. Mike Dugan, who is running for Congress.

A runoff, if needed, will be held on March 12.