Yesterday, Senate Bill 4 passed in the North Carolina Senate with a 30-16 vote.

Senate Bill 4 seeks to merge the State Board of Elections with the State Ethics Commission and create a new eight-member board split evenly between Republicans and Democrats.

The bill is now headed to the House for consideration

Minutes before midnight on December 12, 2016, Citizens Union (CU) filed a complaint against the State of New York alleging a violation of the First Amendment of the United States Constitution. CU seeks declaratory and injunctive relief from disclosure laws passed in June.

The new laws lowered the annual lobbying spending threshold from $50,000 to $15,000 for 501(c)4 organizations. Additionally, the new laws require 501(c)4 organizations to disclose donors who give more than $2,500. The complaint was filed in the United States District Court for the Southern District of New York.

On Monday, the Howard Jarvis Taxpayers Association and retired State Senator and Judge Quentin L. Kopp filed a lawsuit in the Sacramento Superior Court seeking to invalidate Senate Bill 1107. SB 1107 was passed this fall and allows any municipality the option to create systems for publicly funded campaigns.

Prior to SB 1107, only six charter cities were allowed to offer limited public funds to match small campaign donations. The suit requests an injunction to stop the new provisions from taking effect on January 1, 2017. The plaintiffs are also requesting SB 1107 be ruled invalid and sent to voters on a statewide ballot.

On December 14, Portland City Council voted 3-2 to pass the Open and Accountable Elections package to create a public campaign finance matching system.

The publicly funded election system is modeled on New York City’s public campaign financing program. The city will provide matching funds to eligible candidates for mayor, city commissioner and auditor, with funding starting in 2019 for the 2020 election.

On December 15, Federal Communications Commission (FCC) Chairman Tom Wheeler announced his resignation. Wheeler will leave office on January 20, 2017, the date of the inauguration of president-elect Donald J. Trump.

Because Commissioner Jessica Rosenworcel was not confirmed by the Senate for a new term and will not be with the FCC after January 3, until new commissioners are appointed, the FCC will have a 2-1 Republican majority on the day Trump is sworn in as president. The five-member FCC may only have three commissioners from a single political party. One of the responsibilities of the FCC is enforcement of broadcast political advertising.

Minutes after legislators finished work on a hurricane relief package in a two-day special session set by Gov. Pat McCrory, Republicans called a second special session Wednesday in an attempt to pass legislation to limit newly elected Democrats.

Most of the 21 bills introduced seek to limit the power of the executive branch. Senate Bill 4 would merge the State Board of Elections with the State Ethics Commission and create a new eight-member board split evenly between Republicans and Democrats. Current law gives a majority of the state elections board’s five members to the governor’s party.

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.

Elections

“Stein Spent Nearly $1 Million of Recount Funds on Consultants, Staff, Admin Expenses” by Joe Schoffstall for The Washington Free Beacon

New Mexico: “Political Action Committees Spent Big in Closing Days of Election” by Morgan Lee (Associated Press) for Albuquerque Journal

Ethics

“Former Democratic Congressman Chaka Fattah Sentenced to Decade in Prison” by Deena Zaru for CNN

Connecticut: “Bilda, Hinchey to Face Ethics Hearings Over Derbygate” by Ryan Blessing for The Bulletin

New Hampshire: “Portsmouth Resident Tries Again With Ethics Complaint” by Jeff McMenemy for Seacoast Online

South Dakota: “Attorney General’s Office Pushes to Save Parts of Ethics Law” by The Associated Press for The Washington Times

Campaign Finance

Missouri: “KCMO Police Commissioner May Have Broken Missouri Law” by Andy Alcock for KHSB

New York: “Hearing Delayed in Staver-Sauer Case” by Andrew Setterholm for Post Bulletin

Wisconsin: “Report: PAC Spending on Wisconsin Legislative Races Soars in Wake of Campaign Finance Change” by Katelyn Ferral for The Capital Times

Legislative Issues

Missouri: “Missouri Democrats Push Anti-Corruption Agenda as Legislative Session Approaches” by Kurt Erickson for St. Louis Post-Dispatch

Lobbying

“Lobbying Muscle May Help Tech Titans Trump Trump” by Allan Holmes and Jared Bennett for Center for Public Integrity

Wisconsin state ethics commissioner Robert Kinney announced his resignation Monday. Kinney cited his disappointment in the agency as his reason for stepping down. He claims the relatively new Ethics Commission operates too secretly and does not adequately enforce ethics, campaign finance and lobbying rules.

Moreover, he contends several members of the commission demonstrate an obvious lack of commitment to the underlying purpose of the agency. In June, Gov. Scott Walker appointed Kinney from a pool of candidates provided by the Democratic Party.

Campaign Finance

“Activists Brace for Fight Over Campaign Finance Law” by Alex Roarty for Roll Call

Elections

“Completed Wisconsin Recount Widens Donald Trump’s Lead by 131 Votes” by Matthew DeFour for Wisconsin State Journal

Ethics

“Aaron Schock Pleads Not Guilty To Slew of Federal Charges” by Aryn Braun for Roll Call

Wisconsin: “State Ethics Commissioner Resigns, Citing Dysfunction in New Watchdog Agency” by Mark Sommerhauser and Molly Beck for Wisconsin State Journal

Legislative Issues

“Budget Shortfalls Expected in the Most States Since Recession” by Liz Farmer for Governing

Lobbying

“K Street Eyes Outgoing Lawmakers for Jobs” by Kate Ackley for Roll Call

“Exxon-Mobil: No Stranger to Lobbying the ‘Swamp’” by Lesley Clark (McClatchy) for The News & Observer

“Trump Transition Trade Staffer Defended NAFTA, was Chamber of Commerce Lobbyist” by Andrew Kaczynski and Chris Massie for CNN

Missouri: “Opinion: The Christmas Spirit of Lobbyists” by Phill Brooks for The Springfield Business Journal

Procurement

New York: “DiNapoli Proposes Procurement Reforms” by Matthew Hamilton for Times Union

Campaign Finance

Florida: “Dozens of Florida Political Committees Being Fueled by Millions in ‘Dark Money’” by Tia Mitchell for The Florida Times-Union

Massachusetts: “Campaign Finance Law Shields Violators” by Stephanie Ebbert for The Boston Globe

Elections

“Senate and House Leaders Call for Inquiry of Russian Hacking in Election” by Jennifer Steinhauer for The New York Times

Ethics

“Trump Invites Trouble if He Keeps Businesses: Ethics Experts” BY Bernard Condon and Julie Bykowicz (Associated Press) for McClatchy DC

“Why All Billionaire Politicians Are Not Created Equal” by Ruairi Arriet-Kenna for Politico

Lobbying

“Insurers Step Up Lobbying With an Eye to Health-Law Changes” by Anna Wilde Mathews and Louise Radnofsky for The Wall Street Journal

“Big Law Lobbying Efforts Fail to Kill 9/11 Litigation Against Saudi Arabia” by Michael D. Goldhaber for The American Lawyer

Missouri: “Lobbyist Gifts to Missouri Legislators Have Dropped Significantly” by Walker Moskop for St. Louis Dispatch

Texas: “Edinburg Hires DC Lobbying Firm” by Naxiely Lopez for The Monitor

Republican candidate John Kennedy won a state run-off election on December 10 to fill Louisiana’s second seat in the U.S. Senate. Kennedy, Louisiana’s incumbent treasurer, won 61 percent of the vote to defeat Democratic candidate Foster Campbell.

Kennedy will take office January 3, 2017, creating a vacancy in his current position that will be filled in a special election to be held in March or October 2017. The First Assistant State Treasurer will take over as treasurer until an election can take place.

Campbell, a member of the Louisiana Public Service Commission, was looking to increase the number of Democrats in the Senate and gained nationwide support and over $2 million in donations in the months leading up to the December 10 election.

With Kennedy’s victory, the Senate is comprised of 52 Republicans and 48 Democrats. Kennedy will hold the seat until he is up for re-election in 2022.

Campaign Finance

Arizona: “What Ever Happened to The Investigations into Tom Horne?” by Yvonne Wingett Sanchez for Arizona Republic

California: “Contra Costa: Turmoil in DA’s office after agency head admits to violating California law” by Nate Gartrell by East Bay Times

Maine: “Ethics Commission Favors Shedding Light on ‘Dark Money’ in Maine Campaigns” by Kevin Miller for Portland Press Herald

Oregon: “Portland City Council Set to Revive Publicly Funded Campaigns – in 2019” by Jessica Floum for The Oregonian

Ethics

“Trump Could Keep D.C. Hotel Despite Conflict of Interest” by Isaac Arnsdorf for Politico

“Suspected of Corruption at Home, Powerful Foreigners Find Refuge in U.S.” by Kyra Gurney, Anjali Tsui, David Iaconangelo, and Selena Cheng for Miami Herald

Kentucky: “Tim Longmeyer Pleads Guilty to State Felony” by Tom Loftus for Louisville Courier-Journal

Massachusetts: “Antiboycott Groups Pay for State Officials’ Israel Trips” by Frank Phillips for Boston Globe

South Dakota: “South Dakota Judge Puts Government Ethics Overhaul on Hold” by James Nord (Associated Press) for Sioux Falls Argus Leader

Lobbying

“Trump Victory Sets Off a Tsunami of Lobbying Activity by Companies” by Steven Mufson and Ylan Mui for The Washington Post

Florida: “PBC School Board Imposes New Rules for Lobbyists” by Andrew Marra for Palm Beach Post

Elections

“Obama Orders Intelligence Report on Russian Election Hacking” by David Sanger and Scott Shane for The New York Times

See what’s happening in government relations this week in our News You Can Use Video Digest. Enjoy!