October 24, 2013 •
Second Circuit Grants Injunction on NY Contribution Limits
Court says limits are “likely unconstitutional”
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.
October 24, 2013 •
FEC Updates Policy for Requesting Consideration of Legal Questions by the Commission
Paper Filing Still Available
On October 23, 2013, the Federal Election Commission (FEC) updated its policy regarding a program for requesting consideration of legal questions during a report review or audit process.
The commission now provides an electronic means for filing these types of requests, which previously were available only by filing in paper form. While requests may be still submitted in paper form, the FEC encourages requestors to submit their requests via email to ensure the timely receipt and consideration of the comments.
Requestors may submit requests to LegalRequestProgram@fec.gov
October 24, 2013 •
Thursday News Roundup
Here are some great articles for today’s government relations news summary:
Lobbying
“Lobbyists shift strategy amid gridlocked Congress” by Catherine Ho in The Washington Post.
“GOP hardliners reach out to K Street” by Anna Palmer and Jake Sherman in Politico.
“Primary challenges would require shift from Chamber of Commerce” by Kevin Bogardus in The Hill.
“Grocery Manufacturers Assn. Discloses Federal and Washington State Lobbying” by Kent Cooper in Roll Call’s Political MoneyLine.
“Lobbying Heats Up Before Farm Talks” by Ron Nixon in The New York Times.
Campaign Finance
“Political influence by county: A new way to look at campaign finance data” by Ryan Sibley and Bob Lannon and Ben Chartoff in the Sunlight Foundation Blog.
California: “California’s political watchdog settles with shadowy Arizona group criticized for not disclosing donors” by Jessica Calefati in the San Jose Mercury-News.
California: “Political watchdog to levy $1-million fine on out-of-state groups” by Chris Megerian and Anthony York in the Los Angeles Times.
Connecticut: “Reporters grill Malloy on fundraisers” by Ken Dixon in the Connecticut Post.
District of Columbia: “McDuffie’s Campaign Finance Reform Bill Isn’t Strong Enough, Says Wells” by Matt Cohen in dcist.com.
New York: “Ex-Liu campaign treasurer appeals conviction in NY” by Larry Neumeister in the Post-Star.
Wisconsin: “Wisconsin lawmakers rake in special interest money” by Donovan Slack in the Fond du Lac Reporter.
Ethics
Iowa: “Three words make big difference in Iowa legislative ethics rules” by James Q. Lynch in the Sioux City Journal.
State Legislatures
Montana lawmaker term limits: “Montana lawmakers seek to strengthen Legislature” by The Associated Press in the Bozeman Daily Chronicle.
Tech and Social Media
“Change.org Enables Elected Leaders To Respond To Petitions” by Sarah Lai Stirland in TechPresident.
October 23, 2013 •
Wednesday Government Relations News
Here is our roundup of the latest articles on lobbying, campaign finance, ethics, and more!
Lobbying
“Lobbying World” in The Hill.
Campaign Finance
District of Columbia: “Campaign finance reform will get D.C. Council vote next month” by Mike DeBonis in The Washington Post.
Kentucky: “Outside groups spend millions to sway Ky. senate race” by Joseph Gerth in The Courier-Journal.
Ethics
Georgia: “State auditor to investigate Deal, ethics commission” by Christina A. Cassidy in the Athens Banner-Herald.
Elections
Washington: “Washington state special election could decide party control” by Reid Wilson in The Washington Post.
Tech and Social Media
“Now You Can Petition Some Members of Congress Directly” by Joseph Marks in Nextgov.
“Farewell to The Thicket” by Karl Kurtz in NCSL’s The Thicket. The Thicket will be absorbed by the NCSL blog found here.
October 23, 2013 •
Riverside County, CA Amends Campaign Disclosure Laws
Electronic filing expanded
The Board of Supervisors has amended campaign finance regulations to require candidates and committees to electronically disclose all contributions of $1,000 or more, whether made during or outside the 90-day election cycle. Effective January 1, 2014, a candidate or political action committee must electronically post details of a contribution within 10 days if the amount meets or exceeds the $1,000 threshold outside an election cycle.
Currently, only contributions of $5,000 or more need to be posted electronically if made outside an election cycle. Contributions of $1,000 or more made during an election cycle will continue to be filed electronically within 24 hours.
The ordinance is expected to comply with Assembly Bill 2452, a new state law allowing local governing bodies to require electronic disclosure for contributions, so long as the locality complies with state regulations.
October 23, 2013 •
We Are Launching a New StateandFed.com
Arrives November 1st!
State and Federal Communications is proud to announce that we are unveiling our new website StateandFed.com on November 1st. Clients and visitors to the site will enjoy the same unrivaled compliance expertise but with a brand new web experience.
Features of the new StateandFed.com include a personalized homepage, new bookmarking abilities, mobile optimization, and a new integration of the Compliance Now Newsletter, News You Can Use, Lobby Comply Blog, and all of our social media.
Remember, the new StateandFed.com arrives on Friday, November 1st. You’ll be hearing much more about it soon!
October 23, 2013 •
Ask the Experts – Lobbyists, Legislators, and Gift Laws
Here is your chance to “Ask the Experts” at State and Federal Communications, Inc.
Q. I am a registered lobbyist with a personal relationship with a state legislator. I would like to give her a gift for a special occasion. Is this permissible?
A. As a registered lobbyist, you should always be aware of the restrictions placed on you for providing things of value to a state official. A number of jurisdictions have strict “no gift” laws in place. Wisconsin prohibits a lobbyist from providing things of pecuniary value to a legislator with very limited exceptions.
A gift can be permissible based on the personal relationship between the lobbyist and the legislator. Texas and Florida allow gifts between a registered lobbyist and a legislator if they are related to a certain degree. Please note that jurisdictions can examine the circumstances of the gift such as the extent of the relationship between the lobbyist and the legislator. The lack of a history of gift giving between the parties or evidence of a personal relationship may render the gift impermissible. The federal “friendship” exception also does not apply to state and local jurisdictions.
A registered lobbyist may be allowed to give a gift based on the special occasion or reasoning behind it. In Massachusetts, a lobbyist may give a legislator gifts on certain occasions of religious or personal significance. Connecticut allows gifts for certain major life events. Be sure to confirm if any occasions are excluded. Massachusetts does not consider a birthday to be an occasion of personal significance!
A gift may not be prohibited even if you are a registered lobbyist. Confirm whether an intended gift is permissible with your state’s ethics office.
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.
October 22, 2013 •
State Bar of Michigan Questions Funding of Judicial Campaigns
Anonymous funding gives perception of judicial bias, State Bar says
The State Bar of Michigan has requested a declaratory ruling from the Michigan Secretary of State regarding the current interpretation of the state’s Campaign Finance Act as it relates to judicial campaign contributions.
Under the current interpretation of the law, issue advocacy advertisements are not considered expenditures, and thus are not required to be reported. This allows the funding sources of the majority of judicial campaign advertisements to remain anonymous.
The State Bar of Michigan argues that such anonymous funding gives a perception of judicial bias in the state. The Secretary of State must issue a declaratory ruling within 60 days of receipt of the request. Stay tuned!
October 22, 2013 •
Tuesday Lobbying and Campaign Finance News Update
Keep up with the latest government relations news with these articles:
Lobbying
“There’s no sunrise yet on K Street” by Kevin Bogardus and Megan R. Wilson in The Hill.
“The state of K Street: Flat” by Byron Tau in Politico Influence.
“Major oil group boosts lobbying” by Ben Geman in The Hill.
“Facebook Lobbyist to Head Up Cory Booker’s Senate Staff” by Andrew Ramonas in the Blog of the Legal Times.
Campaign Finance
Arizona: “Horne denies campaign finance wrongdoing” by Howard Fischer in the Arizona Daily Star.
Montana: “Appeal filed over documents tied to dark money” by The Associated Press in the Billings Gazette.
Ethics
Georgia: “Ethics commission chair: Board close to finalizing plan for outside investigation” by Christina A. Cassidy (Associated Press) in The Republic.
Elections
“More female governors expected after 2014” by Emily Schultheis in Politico.
Redistricting
Alaska: “Alaska Redistricting Board to meet” by The Associated Press in the Anchorage Daily News.
October 22, 2013 •
Philadelphia Board of Ethics Proposes Gift Limits
Ethics watchdogs say limits are too low
The city Board of Ethics has proposed new gift regulations designed to clarify what is and is not permitted under the city code. The proposed limits would allow city officers and employees to accept gifts of up to $200 per year from a single source, including cash gifts up to $50. Currently, only gifts of substantial economic value given with the expectation of influencing the public official or employee are prohibited.
City watchdogs have criticized the proposed limits as being too lenient, but ethics board member Sanjuanita Gonzales suggested those limits could be subject to change after public input.
A hearing on the proposed regulations is scheduled for November 20.
October 21, 2013 •
GOP Chooses Candidate for Iowa SD 13 Special Election
Election scheduled for Nov. 19
Delegates from the Republican party have selected State Representative Julian Garrett to run in the special election for Iowa Senate District 13, which takes place November 19.
The special election will fill the seat vacated earlier this month by Kent Sorenson.
The Democrats will select their candidate Monday. Regardless of the outcome of this special election, the Democrats will retain control of the Iowa Senate.
October 21, 2013 •
Pepsi, Others Join Battle Over Initiative 522
Labeling of genetically-modified foods proves controversial
Initiative 522, which would require labeling on genetically modified foods in Washington state, has drawn negative attention from many of the nation’s largest and most recognizable food manufacturers, including Pepsi, Coca-Cola, and Nestle.
Pepsi is the biggest contributor to the effort to oppose the initiative, with its contributions accounting for $1.6 million of the $7.2 million total contributions collected to date.
Voters will decide the issue on November 5, with the election marking one of the most expensive initiative battles in the history of Washington state.
October 21, 2013 •
Honolulu Ethics Commission Seeks to Avoid Future Pay-to-Play Concerns
New Gift Law Provisions Created
Honolulu Mayor Caldwell and his transitional team came under the review of the city Ethics Commission recently for potential violations of gift law. The Commission found no violations due to a lack of established ethical guidelines but placed restrictions on future donations for inaugural or transitional purposes.
Safeguards put in place to avoid pay-to-play concerns include mandatory public disclosure of all donations, including the amount of and use for each, prohibition against asking current or prospective city officers or employees to solicit or make contributions, and requiring each donor/contributor to confirm he or she is not a registered lobbyist and has no future business with the city in which the administration is likely to be involved.
The Commission further held donations used to support legitimate government purposes, such as the transition between administrations and the official inaugural ceremony, are gifts to the city.
October 21, 2013 •
Monday News Roundup
Let’s start off the week with these lobbying, campaign finance, and ethics news articles:
Lobbying
“Lobbying bonanza as US firms try to influence EU” by Eric Lipton and Danny Hakim on CNBC News.
“Clustering Near the Seat of Power” in The New York Times.
“Lobbyists Ready for a New Fight on U.S. Spending” by Eric Lipton in The New York Times.
“Cassidy lobby shop goes social” by Catherine Ho in The Washington Post.
Maine: “New lobbying group to represent owners of Maine franchises” by Jessica Hall in the Kennebec Journal.
Tennessee: “Ingram filings call him Haslam campaign consultant” by Andy Sher in the Times Free Press.
Campaign Finance
“Get Over It: Campaign Finance Limits Don’t Work” by James Oliphant in National Journal.
“Washington’s open secret: Profitable PACs” by Steve Kroft on CBS News’ 60 Minutes.
“Pepsi, Coke, Nestle among brands donating to effort vs. labeling genetically modified foods” by Mike Baker (Associated Press) in The Republic.
Montana: “Bullock campaign violated campaign finance law” by Manee Banks in KXLH News.
Texas: “Court Nixes Texas Ban on Corporate PAC Donations” by Jack Bouboushian in the Courthouse News Service.
Ethics
Alabama: “Alabama considers creating election commission” by Phillip Rawls (Associated Press) in the Seattle Post-Intelligencer.
Hawaii: “Ethics Probe into Honolulu Mayor Sparks Talk of Reform” by Nick Grube in the Honolulu Civil Beat.
“Texas: APNewsBreak: Patrick PAC paid his radio station” by Will Weissert (Associated Press) in the Miami Herald.
Redistricting
Arizona: “Arizona redistricting panel running out of money” by The Associated Press in KSAZ TV News.
Tech and Social Media
“Legislative panel to take up Facebook access” by The Associated Press in the Juneau Empire.
State and Federal Communications, Inc. provides research and consulting services for government relations professionals on lobbying laws, procurement lobbying laws, political contribution laws in the United States and Canada. Learn more by visiting stateandfed.com.
