LobbyComply Blog

Gov. Peter Shumlin has finally won reelection following a vote of the state legislature. Shumlin received just 46.4 percent of the vote in November, less than the majority required by the state constitution, compelling the legislature’s action.

Scott Milne received 45.1 percent of the vote but, unlike previous runners-up, he did not concede the election.

By secret ballots cast in a joint session of the House and Senate, Gov. Shumlin received 110 votes to Milne’s 69.

Photo of Gov. Peter Shumlin by Community College of Vermont on Wikimedia Commons.

The Office of the Secretary State announced lobbying registration and reporting in Vermont is going digital. Beginning with the 2015-2016 biennium, registration and reporting will be accomplished solely through a new online management system.

Lobbyist disclosure reports due on January 25, 2015, covering the period from July 1 to December 31, 2014, will be the last paper filings accepted.

The online system will be available for use no later than January 1, 2015.

Republican attorney general candidate Shane McCormack is calling for tougher campaign finance rules for those holding the office. McCormack’s proposal would ban current service providers from contributing to a sitting attorney general and would prevent a donor from becoming a contractor after a successful campaign.

During a debate on Vermont Public Radio, McCormack revealed current attorney general Bill Sorrell accepted $8,000 from Dallas-based Baron & Budd, a law firm later hired as counsel. Sorrell defended the contribution by stating it was properly disclosed and the law firm was hired due to its expertise in the area being litigated.

Baron & Budd was hired following a recommendation from the Agency of Natural Resources to litigate a contaminated groundwater case against the fuel industry. Sorrell claims the agency was unaware of the contribution prior to making the recommendation.

The pro-life group Vermont Right to Life Committee filed a complaint with the state’s attorney general’s office against Vermont Leads and its independent expenditure PAC, Vermont Leads Political Action Committee. The complaint alleges transfers of money between the two groups violate campaign finance laws.

Act 90, enacted in January, states an independent expenditure PAC cannot be closely related to a political party or political committee if they make contributions to candidates. The treasurer of Vermont Right to Life Committee, Sharon Toborg, is asking the attorney general to clarify the statute’s language.

Assistant Attorney General Eve Jacobs-Carnahan believes the distinction will depend on communication between Vermont Leads and its PAC as well as their governance structure, activities, and spending.

Secretary of State Jim Condos announced candidates, parties, and political action committees are now able to file financial reports online.

Use of the online system is currently voluntary but becomes mandatory on January 1, 2015.

Electronic filing is available here.

On Wednesday, July 2, a federal appeals court affirmed the judgment of a district court; independent expenditure committees can lose the right to make unlimited expenditures in certain circumstances.

In Vermont Right to Life v. Sorrell , the U.S. Court of Appeals for the 2nd Circuit ruled a state-level super PAC was not functionally distinct enough from a sister committee actively contributing to candidates and parties. Whether a group is functionally distinct from a non-independent-expenditure-only entity depends on factors including, but not limited to, the overlap of staff and resources, the lack of financial independence, the coordination of activities, and the flow of information between the entities.

Creating two committees and managing two separate bank accounts is not sufficient to prove the committees’ funds are actually treated as separate. To alleviate the danger of quid pro quo corruption, contribution limits may apply to super PACs when they are not functionally distinguishable from committees directly contributing or coordinating expenditures with campaigns.

House Bill 735, signed by the governor on June 16, 2014, made changes to the lobbyist fee structure. Effective July 1, 2014, the initial registration fee for lobbyists and lobbyist employers will increase from $25 to $60. The employer fee for each additional lobbyist will increase from $5 to $15. The lobbyist fee for each additional employer will also increase from $5 to $15.

Senate Bill 86 was amended this year to include additional changes to the state’s lobbying law. Effective July 1, 2014, the Secretary of State’s Office will no longer mail disclosure forms to lobbyists and employers. Forms will be made available on the website no later than 30 days prior to the deadline.

Additionally, contracts with legislators or administrative officials are no longer treated as a type of expenditure and will be reported on their own line on the form.

The Vermont attorney general has issued guidance regarding the state’s contribution limits effective through the end of the year. His guidance interprets the $1,000 per election limit as meaning a candidate may accept a total of $2,000 for the 2013-2014 election cycle, even if the candidate does not face a primary contest. Candidates who lose their primary election may also accept the full $2,000. This guidance is effective for contribution limits only through the end of the year, as Vermont’s new contribution limits effective January 1, 2015 are per two-year election cycle rather than per election.

The full text of the attorney general’s guidance is here.

Attorney General William Sorrell issued a formal opinion confirming the state’s current contribution limits will remain in effect through the 2014 elections. Early in the legislative session, Vermont enacted Senate Bill 82, repealing the existing campaign finance law upon passage and establishing new contribution limits to take effect January 1, 2015.

The bill contained a drafting error, however, repealing the existing limits without anything in their place before the new limits take effect in 2015. The House attempted to correct the error through an additional bill, but it was never acted upon by the Senate Finance Committee.

While the Elections Division issued a statement confirming the old limits still applied, Secretary of State Jim Condos requested a formal opinion from the state’s attorney general since his office lacked statutory authority to enforce the old limits.

Relying on legislative deliberations on Senate Bill 82, Sorrell ruled the Legislature did not intend to repeal existing limits for the 2014 election cycle, and the existing limits at the time of the bill’s passage will be enforced until the new limits take effect next year.

Vermont may soon move off the list of states without an independent ethics commission if new legislation passes this spring.

House Bill 846 establishes the Vermont Ethics Commission, tasked with investigating complaints relating to breaches of legislative ethics law.

The bill also includes revolving door provisions and ethics guidelines for legislators and executive branch employees.

A drafting error in the state’s new campaign finance law left Vermont temporarily without contribution limits. The new limits are set to take effect on January 1, 2015, but the bill repealed the entire existing law effective upon the governor’s signature.

Although the repealed statutory limits had been invalidated by the U.S. Supreme Court in 2006, the law reverted to the limits prior to the unconstitutional amendment. The prior contribution limits will remain in effect until the new limits begin in 2015, according to a statement on the Elections Division website.

Vermont has passed comprehensive campaign finance reform early in the second year of its biennial session. Senate Bill 82, signed by Governor Peter Shumlin on January 23, repealed Vermont’s existing campaign finance law and enacted a new framework in its place. The most notable provision of the bill is new campaign finance limits. The new limits, effective January 1, 2015 are as follows:

• Candidates for the office of state representative: $1,000 per election cycle from a single source or political committee;
• Candidates for the office of state senator: $1,500 per election cycle from a single source or political committee;
• Candidates for the offices of governor, lieutenant governor, secretary of state, state treasurer, auditor of accounts, or attorney general: $4,000 per election cycle from a single source or political committee;
• Candidates for candidates for local office: $1,000 per election cycle from a single source or political committee;
• Candidates for county office: $1,500 per election cycle from a single source or political committee;
• Contributions to a political committee: $4,000 per election cycle from a single source, political committee, or political party; and
• Contributions to political parties: $10,000 per election cycle from a single source, political committee, or political party.

Critics of the bill noted the high limit on contributions to political parties, notable because political parties may give unlimited contributions to candidates under the new framework. The bill also included an aggregate election cycle limit of $40,000 from a single source to take effect January 1, 2015, unless the U.S. Supreme Court holds such limits unconstitutional when it delivers its decision in McCutcheon v. Federal Election Commission.

The Legislature adjourned late Tuesday, May 14, 2013, after passing a $1.4 billion budget bill.

Other hallmark legislation of the session included decriminalization of small amounts of marijuana, assisted suicide, and driver’s licenses for migrant workers, but the legislature failed to pass a major campaign finance reform bill.

Supporters of campaign finance reform vowed to revisit the issue in January 2014.

Photo of Vermont State House by Decumanus on Wikipedia.

Representative Kurt Wright announced his intention to introduce campaign finance legislation that will enhance disclosures in an election year. Wright and 10 other legislators are working on legislation that would require campaign finance reports to be filed monthly after January 15 in an election year, and increase filing to biweekly leading up to a primary or general election.

Currently, filings are due monthly after July 15.

The bill will also contain provisions related to donor disclosure, requiring PACs to disclose a top contributor if he or she provides more than half of all contributions in a six-month period, and super PACs to disclose their top three donors if their combined contributions account for more than half of contributions received.

Photo of Vermont State House by Jared C. Benedict on Wikipedia.