A United States Supreme Court ruling deciding the constitutionally of aggregate limits on federal campaign contributions may be issued as early as this week.

The case, McCutcheon v. Federal Election Commission, seeks to allow Shaun McCutcheon to make political contributions to several federal candidates exceeding the two-year aggregate limit set in 2 U.S.C §441a(a)(3)(A). The plaintiff argues the limit is unconstitutional because it violates a citizen’s right to speak and to associate with not just any candidate, but every candidate of his choosing.

The Supreme Court decided to grant a review of the case in February 2013 and oral arguments were made on October 8, 2013.

Photo of the United States Supreme Court Building courtesy of UpStateNYer on Wikimedia Commons.

A Missouri judge recently denied a request to compel Gov. Jay Nixon to set special legislative elections. County Circuit Judge Dan Green issued a one-sentence written opinion but provided no reasoning for the ruling. After the lawsuit was filed in January, Nixon set special elections to fill three of the four vacancies. He has not called an election to fill the seat vacated by Sen. Ryan McKenna.

McKenna left office in December after being appointed by Nixon to serve as Labor Department Director.

Photo of Gov. Jay Nixon courtesy of Bernard Pollack on Wikimedia Commons.

Lobbying

“Lobbying Goes Underground: Influence spending now largely off-the-books” by Lee Fang in Politico.

“Largest Lobbying Organization Spends $312K for U.S. Senate Leader” by Kent Cooper in Roll Call.

“Soros group triples its lobbying spending” by Holly Yeager in The Washington Post.

“K Street rumor mill in overdrive” by Bernie Becker and Kevin Bogardus in The Hill.

“Lobbying shop McBee Strategic represents the changing business of influence” by Holly Yeager in The Washington Post.

California: “State lobbying efforts extend to local, regional agencies” by John Howard in the Press Democrat.

Illinois: “Mid-size Illinois cities to form lobbying alliance” by The Associated Press in The State Journal-Register.

New York: “Buffalo Benefited Little From Lobbyists That Were Improperly Paid” by Jeff Preval on WGRZ News.

Campaign Finance

“How ‘the next Citizens United’ could bring more corruption — but less gridlock” by Richard L. Hasen in The Washington Post.

“Dems learn to love super-PACs” by Alexander Bolton in The Hill.

“At last! Sleeker super PACs give rich more options to boost clout” by Zachary Roth on MSNBC.

California: “Bills strengthen campaign finance reporting laws, will require more disclosure from nonprofit” by Fenit Nirappil (Associated Press) in The Republic.

California: “California campaign finance reporting bills on verge of governor’s desk” by Jeremy B. White in the Sacramento Bee.

Hawaii: “Hawaii election campaign fund needs boost” by The Associated Press in the Sun Herald.

Kansas: “Kan. Senate panel OKs campaign finance changes” by The Associated Press on KFDA News.

New York: “Push for public financing of NY campaigns resumes” by Michael Gormley in Newsday.

Rhode Island: “National Rifle Association pays off $63,000 R.I. campaign finance fine” by Philip Marcelo in the Providence Journal.

Ethics

California: “Fraud, bribery cases won’t affect state elections much, analysts say” by Chris Megerian and Melanie Mason in the Los Angeles Times.

South Carolina: “SC Senate ethics bill wouldn’t change oversight” by Seanna Adcox in the Houston Chronicle.

South Carolina: “State House: A look at the proposed compromise on ethics reform” by Adam Beam in The State.

Vermont: “Vt. bills spur conflict-of-interest questions” by Dave Gram (Associated Press) in the San Francisco Chronicle.

Congress

“The Top 10 Legislative Issues to Watch in 2014” by Liz Farmer, Chris Kardish, J.B. Wogan, Mike Maciag, Ryan Holeywell in Governing.

Government Tech and Social Media

New York City: “Digital Engagement Starting to Be New Normal in New York City Council and City Hall” by Miranda Neubauer in TechPresident.

Lawmakers approved a pair of bills to strengthen the authority of the Fair Political Practices Commission (FPPC) and require political nonprofits to reveal their donors. The Assembly approved Senate Bill 27, requiring tax-exempt nonprofits actively involved in elections to comply with campaign finance reporting requirements.

The bill also requires campaign committees raising more than $1 million to maintain an accurate list of the top 10 contributors of $10,000 or more. Those lists would be placed on the FPPC website before elections.

The Senate approved Assembly Bill 800 to give the FPPC more enforcement powers including the ability to audit campaign reports before elections and for two years after elections. Both bills return to their original house for votes on amendments.

If signed by Gov. Jerry Brown, the changes would be effective July 1, 2014.

Photo of the California State Capitol courtesy of Sascha Brückon Wikimedia Commons.

State and Federal Communications is excited to be a supporter of the Public Affairs Council’s National PAC Conference. We have a team of four attending this great event.

More than this, we are sponsoring the Conference Wi-Fi and the Wednesday Networking Breakfast.

Why do we sponsor, you ask? Here is State and Federal Communications President and CEO Elizabeth Bartz to explain:

If you are attending the conference, be sure to join us on Monday, March 3, for our Pre-Conference Luncheon and engage with our experts to see if you can safely say, “I comply!” Our very own compliance expert, Nola Werren, will be on-hand to answer any of your questions. Lunch will be on us and we are also giving away a $25 Starbucks gift card to all attendees!

The Legislature adjourned sine die on Thursday, February 20, 2014.

A bill to expand revolving door restrictions passed the House, but did not move out of the Senate Rules Committee.

Gov. Susana Martinez has until March 12 to act on legislation. Any bill failing to reach her desk is now dead.

National:

Last Call for State Parties?

Politico – Byron Tau | Published: 2/16/2014

State party officials across the country say the increase in money going to super PACs, nonprofits, and presidential campaigns has made fundraising more difficult. Some of those outside groups are starting to take over the traditional local roles state parties play, spending big on voter contact and outreach operations. The effect is that candidates can be more beholden to national organizations or single-issue groups rather than state party leaders.

Federal:

A Wave of Capitol Hill Retirements May Force Some Lobbyists to Rebrand Themselves

Washington Post – Holly Yeager | Published: 2/17/2014

The retirements of several powerful members of Congress are affecting former aides that have moved to K Street. Across a variety of areas, the departures – more than two dozen at last count – are prompting former Capitol Hill staffers whose biographies boast of their high-level connections to try to reassure their lobbying clients that they bring more to the job than links with their old bosses.

From the States and Municipalities:

California – Ex-SF Supervisor Yaki Heads off Suit, Pays $75K

San Francisco Chronicle – John Coté | Published: 2/20/2014

Former San Francisco Supervisor Michael Yaki agreed to pay $75,000 to settle a lawsuit in which the city alleged he was an unregistered lobbyist who broke the municipal lobbying law “in every way.” The proposed settlement would be the largest payment in state history to resolve allegations of unreported lobbying. Yaki also must register retroactive to 2012 and report all of his contacts with city officials from that point forward.

California – San Francisco 49ers Drop Embattled Lobbyist Kevin Sloat

San Louis Obispo Tribune – Laurel Rosenhall and Christopher Cadelago (Sacramento Bee) | Published: 2/14/2014

The San Francisco 49ers fired their Sacramento lobbying firm, Sloat Higgins Jensen and Associates, after the company was fined $133,500 by the California Fair Political Practices Commission for violating the state’s lobbying laws. Kevin Sloat acknowledged hosting elaborate fundraising parties for nearly 40 politicians, providing liquor, cigars, and other hospitality that amounted to campaign contributions that are prohibited from lobbyists.

Florida – Should David Beckham Have Registered as a Miami-Dade County Hall Lobbyist?

Miami Herald – Patricia Mazzei | Published: 2/14/2014

In June, during his early days exploring Miami as a location for his expansion Major League Soccer franchise, David Beckham and his investors had meetings with local officials. Now, Miami-Dade’s ethics commission is examining whether Beckham and his partners broke any rules requiring lobbyists to register with county government before making a pitch to public officials.

Louisiana – David Vitter’s Super PAC Challenges Louisiana’s Campaign Contribution Limits

New Orleans Times Picayune – Julia O’Donohue | Published: 2/18/2014

A super PAC set up to support U.S. Sen. David Vitter and his 2015 gubernatorial run is asking a federal court to rule Louisiana’s cap on donations to PACs unconstitutional. The Fund for Louisiana’s Future argues the state is restricting political speech by imposing a contribution limit on PACs of $100,000 per four-year election cycle from individuals, corporations, and unions. It wants the court to make a decision before April 5, when the next round of Louisiana’s local and state elections take place.

New Jersey – Trenton Mayor Tony Mack May Not Be Leaving Office Anytime Soon

NJ.com – Alex Zdan and Jenna Pizzi | Published: 2/16/2014

Trenton Mayor Tony Mack has refused to step down after he was found guilty February 7 on corruption charges. His conviction in a federal court does not trigger his automatic removal from office; without a resignation, Mack will remain mayor until state prosecutors can get a judge to sign off on an order of forfeiture. Removal after a conviction in state court is automatic, but not if the official is tried by federal prosecutors as Mack was.

New York – JCOPE Returns to Waivers

Albany Times Union – Casey Seiler | Published: 2/18/2014

At a recent meeting, members of the Joint Commission on Public Ethics debated exemptions to rules that require the disclosure of donors by nonprofit groups that engage in lobbying. The controversy over the exemptions began last summer, when it was revealed the state arm of the pro-choice group NARAL had been granted an exemption, prompting Republicans to complain that the panel had created a secret path for political giving.

North Carolina – Duke’s Giving Favored the GOP as Lawsuits Threatened, Watchdog Group Says

Raleigh News & Observer – Bruse Henderson | Published: 2/14/2014

North Carolina Gov. Pat McCrory denied he had any talks with Duke Energy executives or lobbyists about his administration’s now scuttled deal to settle environmental violations at two of the company’s coal ash dumps. McCrory worked at Duke 28 years before retiring to make his first run for governor in 2008. On a state disclosure form, McCrory last year indicated his investment portfolio includes holdings of Duke stock valued in excess of $10,000, though he is not obligated to disclose the specific amount.

Oregon – Oregon Secretary of State Kate Brown Modifies Elections Rules as Website Breach Keeps Databases Offline

Salem Statesman Journal – Hannah Hoffman | Published: 2/19/2014

The Oregon secretary of state’s office shut down most its public online systems after detecting an intrusion into its website. Secretary of State Kate Brown is waiving fines for missing a campaign finance reporting deadline while ORESTAR remains down.

South Carolina – SC Poised to Elect First Black Candidate to Statewide Office

The State – Adam Beam | Published: 2/18/2014

The last time South Carolinians elected an African-American to statewide office was 1872, when Richard Howell Gleaves was elected the state’s second – and last – black lieutenant governor. The black community’s political influence was squashed in 1895 when then-Gov. Ben Tillman rewrote the state constitution, which is still in place today, to virtually eliminate all black influence in state politics. Now, 142 years later, that influence appears to be returning, albeit it in small steps.

Vermont – No Second Bite at Campaign Finance Limits

Rutland Herald – Neal Goswami (Vermont Press Bureau) | Published: 2/14/2014

The Vermont House defeated an attempt by one member to delay implementation of the state’s new campaign finance law until 2019. Rep. Cynthia Browning tried to add the delay as an amendment to a bill making a technical correction to the campaign finance law signed by Gov. Peter Shumlin in January. Browning and other critics have charged it did too little to clamp down on the influence of wealthy political donors.

Wisconsin – Scott Walker, Eyeing 2016, Faces Fallout from Probes as Ex-Aide’s E-mails Are Released

Washington Post – Rosalind Helderman | Published: 2/20/2014

Thousands of recently unsealed documents link Wisconsin Gov. Scott Walker to a secret email system used in his office that would avoid public scrutiny when he was Milwaukee County executive. The documents show just how intertwined Walker’s campaign operation was with his taxpayer-paid county staff in the months leading to the November 2010 election. It is against state law for public employees to work for political parties and campaigns while being paid by taxpayers to provide government services.

State and Federal Communications produces a weekly summary of national news, offering more than 80 articles per week focused on ethics, lobbying, and campaign finance.

News You Can Use is a news service provided at no charge only to clients of our online Executive Source Guides, or ALERTS™ consulting clients.

Lobbying

“Americans for Prosperity registers to lobby” by Megan R. Wilson in The Hill.

“Institutions target lobbying disclosure, raising Trayvon Martin case” by Barry B. Burr in Pensions & Investments.

Campaign Finance

“Firewalls Crumble at Federal Election Commission” by Kent Cooper in Roll Call’s Political MoneyLine.

Minnesota: “Trevor Potter of ‘Colbert Report’ explains campaign finance laws at U of M event” by Eric Black in MinnPost.

Oregon: “State refuses comment on ORESTAR security breach” by Hannah Hoffman in the Statesman Journal.

Oregon: “Tigard ballot measure: With ORESTAR still offline, concerns raised about campaign finance” by Luke Hammill in The Oregonian.

Wisconsin: “Wisconsin Gov. Scott Walker under fire in campaign finance probe” by The Associated Press on CBS News.

Ethics

Arkansas: “Backers of ballot proposal to tighten Ark. campaign finance, lobbying rules told to try again” by The Associated Press in The Republic.

Hawaii: “Hawaii Ethics Commission Examines How Lawmakers Spend Their Allowances” by Nathan Eagle in the Honolulu Civil Beat.

Vermont: “Stowe representative pushes ethics bill” by Anne Galloway in the Waterbury Record.

Open Government

Mississippi: “3 ‘transparency’ bills head to Senate for consideration” by Tyler Cleveland in the Madison County Journal.

Government Tech and Social Media

“U.S. ranks sixth in use of digital government” by Frank Konkel in FCW.

Lobbying

“Bottom Line” in The Hill.

“Could ʹThe Lobbyʹ Bring Crowdfunding To US Lobbying Efforts?” by Charles Luzar in Crowdfund Insider.

Missouri: “Missouri Senate panel weighs revolving door policy on lobbying” by The Associated Press in KDSK News.

Oregon: “Oregon interest groups spent $33 million lobbying on state legislation last year” by Jeff Mapes in The Oregonian.

Campaign Finance

Arizona: “Lawmakers seek to shine light on anonymous campaign contributions” by Howard Fischer in the Arizona Daily Star.

California: “ʹWar roomʹ alleged for illicit campaign funds” by Kristina Davis in The San Diego Union-Tribune.

New York: “Campaign finance reformers take a hard line” by Jordan Carleo-Evangelist in the Albany Times Union.

Political Campaigns

New York: “NY ethics panel proposes 90-day broadcast blackout” by The Associated Press in The Wall Street Journal.

On February 13, the Texas Ethics Commission issued an advisory opinion concerning the requirements of lobbyists to disclose office holders or candidates compensating or reimbursing the lobbyist for services from political contributions.

In Ethics Advisory Opinion No. 515, the commission held that while a lobbyist must disclose in a registration the full name and address of a candidate or officeholder who uses political contributions to compensate or reimburse the lobbyist, he or she is not required to disclose compensation or reimbursement received by an entity for services rendered by someone other than the lobbyist or a person acting as an agent of the lobbyist.

Lobbyists must disclose the full name and address of a candidate or officeholder who uses political contributions to compensate or reimburse an entity that employs or hires the lobbyist to render services for the candidate or officeholder.

A lawsuit was filed in federal court this week challenging Louisiana’s $100,000 limit on contributions to political action committees (PACs).

The plaintiff in the suit is an independent expenditure-only PAC called The Fund for Louisiana’s Future. It is arguing that, because it only makes expenditures independent of any candidate, the limit violates the First and Fourteenth Amendments.

According to The Advocate, the PAC was created to support Sen. David Vitter’s future bid for governor or re-election bid for Senate.

Q. I am a registered lobbyist and on occasion I use my personal funds to make political contributions, as does my spouse.  Are there states that prohibit such activity?

A. A lobbyist, simply by virtue of his or her profession, may be prohibited from making personal political contributions.

There are nine states that either prohibit or limit a registered lobbyist’s ability to contribute to state candidates. In most instances, a lobbyist’s ability to contribute to political parties and ballot measure committees remains intact.

Kentucky, North Carolina, and Tennessee impose an outright ban on lobbyists’ contributions. In Connecticut and Massachusetts, there isn’t an outright ban, but instead a monetary limit of $100 and $200, respectively. In Connecticut, the limitation extends to family members of lobbyists.

Perhaps the state most mired in “red tape” is Alaska. A lobbyist may not contribute to a candidate for office in a district outside the lobbyist’s own voting district. This prohibition continues for one year after a lobbyist’s registration or renewed registration date. A lobbyist who contributes to a legislative candidate must file a Lobbyist Report of Contributions to Legislative Candidates (Form 15-5A) within 30 days after making the contribution.

In some states, lobbyists may not contribute to state candidates or officeholders if registered to lobby the candidate’s or officeholder’s agency. Such is the case in California and South Carolina.

Finally, as a registered lobbyist you should be aware there are numerous states that impose a lobbyist ban during the legislative session. Be sure to review the relevant statutes, regulations, and guidelines.

You can directly submit questions for this feature, and we will select those most appropriate and answer them here. Send your questions to: marketing@stateandfed.com.

(We are always available to answer questions from clients that are specific to your needs, and we encourage you to continue to call or e-mail us with questions about your particular company or organization. As always, we will confidentially and directly provide answers or information you need.) Our replies to your questions are not legal advice. Instead, these replies represent our analysis of laws, rules, and regulations.

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.

Lawmakers agreed by resolution to consider a bill aimed at avoiding a special election for the lieutenant governor’s office, which was vacated by former Lt. Gov. Mark Darr following ethics violations. Senate Bill 139 would enable Gov. Mike Beebe to call a special election “as soon as practicable” if calling a special election within 150 days of the vacancy would be impracticable or burdensome.

The bill was introduced in an effort to avoid the cost of a special election until the general election on November 4, 2014. The resolutions required a two-thirds vote in the House and Senate because they occurred during the fiscal session.