The United States Supreme Court has decided to hear a case challenging the aggregate federal limits for a person making contributions to candidates, party committees, and PACs. The case, McCutcheon v. Federal Election Commission (FEC), is expected to be argued and decided during the Court’s next term, which begins in October, 2013.

The plaintiff, Shaun McCutcheon, is an Alabama businessman who regularly makes political contributions to Republican candidates and the Republican National Committee (RNC). Mr. McCutcheon wishes to contribute $26,200 more to candidates and committees than the aggregate ceiling would allow. However, he is not challenging the limits on contributions to individual candidates and entities. Mr. McCutcheon wants to give to more candidates and political entities. The RNC is also a plaintiff in the suit.

Federal law imposes two types of limits on individual political contributions, base limits and biennial limits.

Base limits restrict the amount an individual may contribute to:

• A candidate committee;
• A national party committee;
• A state, local, and district party committee; and
• A political action committee.

Biennial limits restrict the aggregate amount an individual may contribute biennially, using the 2011-2012 election cycle limits argued against in the lawsuit, as follows:

• $46,200 to candidate committees; and
• $70,800 to all other committees, of which no more than $46,200 may go to non-national party committees (e.g., state parties and PACs).

The plaintiffs are only challenging the overall limits (the biannual limits) and not the base limits.

The attorneys for McCutcheon and the RNC argue the two-year ceilings federal law sets on what an individual can contribute during a campaign are unconstitutional. Specifically, they assert the limits on contributions violate a contributor’s right to free speech; the limits for biennial contributions are too low; and the distinction between contributions and expenditures articulated in the 1976 US Supreme Court case Buckley v. Valeo are no longer applicable because of the changes in campaign finance laws over the last 30 years. Buckley v. Valeo allowed for government regulation of contributions to prevent political corruption and prohibited government regulation of expenditures because of First Amendment protections.

Unlike Citizens United v FEC, which concerned political expenditures, McCutcheon v. FEC addresses contribution limits. Additionally, this case does not involve the political contributions or expenditures of corporations.

Lobbying

“K Street Files: Former Obama Health Care Guru Heads to K Street” by Kate Ackley in Roll Call.

“Rules of the Game: Lame-Duck FEC Invites Scofflaws” by Eliza Newlin Carney in Roll Call.

“Top GOP House aide goes to K Street” by Kevin Bogardus in The Hill.

California: “Charities are engaged in California political fights” by Torey Van Oot in the Sacramento Bee.

Campaign Finance

Arkansas: “Ark. lawmakers OK proposal to put campaign finance constitutional amendment on the ballot” by The Associated Press in The Republic.

New Jersey: “Donors behind millions in N.J. political contributions kept secret, analysis finds” by Christopher Baxter in the Star-Ledger.

Ethics

“Why Washington is corrupt” by Lawrence Lessig on CNN News.

Arizona: “Panel on constitutional amendments endorses ethics proposal” by John Lyon in Arkansas News.

New York: “Lhota, at City Hall, Proposes Ways to Curb Corruption” by David M. Halbfinger in The New York Times.

Texas: “Texas ethics watchdog hardly ever barks” by Rick Casey in the Express-News.

Virginia: “Cuccinelli denies conflict of interest claims” by Julian Walker in The Virginian-Pilot.

Open Government

“Oklahoma Gov. Mary Fallin won’t budge on executive privilege claim concerning emails” by Zeke Campfield in The Oklahoman.

Social Media

“For pols, Tumblr is trending” by Kevin Cirilli in Politico.

Governor Mike Beebe has approved a bill expanding restrictions on former public officials seeking to register as lobbyists. Senate Bill 331, now Act 486, prohibits statewide elected officers, certain state employees, and state agency executives from registering as a lobbyist for one year following expiration of employment.

Previously, only members of the General Assembly were subject to this revolving door restriction.

Governor Matt Mead has signed a campaign finance bill to increase contribution limits and decrease criminal penalties for violations. House Bill 187 increases contribution limits to $2,500 per candidate for statewide office and to $1,500 per candidate for non-statewide office. Currently, the limit is $1,000 for both statewide and non-statewide campaigns.

The bill also increases the total individual contribution limit from $25,000 to $50,000 per two-year election cycle. Contributions from PACs, currently unlimited, will be limited to $7,500 per candidate for statewide office and $3,000 per candidate for non-statewide office.

The penalty for a first violation of the limits will drop from $10,000 to $5,000 and filing a false report will no longer be a felony. The bill becomes effective January 1, 2015.

At any given time, more than 1,000 legislative bills, which can affect how you do business as a government affairs professional, are being discussed in federal, state, and local jurisdictions. These bills are summarized in the State and Federal Communications digital encyclopedias for lobbying laws, political contributions, and procurement lobbying, and can be found in the client portion of the State and Federal Communications’ website.

Summaries of major bills are also included in monthly e-mail updates sent to all clients. The chart below shows the number of bills we are tracking in regards to lobbying laws, political contributions, and procurement lobbying.

National:

Governors’ Groups Rely Increasingly on ‘Dark Money’ Affiliates

Federal:

Hanford Contractor Reaches $1.1 Million Settlement in Whistleblower Suit Involving Training Program

Most Lobbyists Following Disclosure Rules, Government Report Says

From the States and Municipalities:

Alaska – House Trips over Bad Jokes and a Representative’s Tongue

Arizona – Federal Judge Strikes Down 2 Arizona Anti-Union Statutes

Florida – Lawmaker Complains about Getting Out of Speeding Ticket; Trooper Fired

Florida – Lawmakers Seek Exceptions to Free Food and Drink Ban

Georgia – New Ga. Lobbying Rules Raise Fresh Issues

Iowa – Sex Offender Faces Charge after Lobbying Legislators

Maryland – Maryland Close to Raising Political Donation Limit to $24,000

New Jersey – Secret Recording Led to Criminal Case against N.J. Engineering Firm Birdsall Services Group

New York – Lawmakers in New York Tied to Bribery Plot in Mayor Race

North Carolina – NC Court of Appeals Sends Case against Lobbyist Back to Trial Court

Pennsylvania – Judge Throws Out All Campaign Finance Limits in Pittsburgh Mayoral Race

South Carolina – GOP Frets Mark Sanford Could Blow It

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.

The General Assembly reconvened for a one-day session on April 3, 2013, to consider the governor’s vetoes and amendments.

Up for consideration were 80 bills for which Governor McDonnell offered amendments, including the state’s landmark transportation bill, and six vetoed bills.

The General Assembly accepted a number of the governor’s amendments to the transportation bill, including a reduction of fees on alternative-fuel vehicles and a reduction of lodging and vehicle-titling taxes.

Photo of the Virginia State Capitol by Anderskev on Wikipedia.

The Mississippi Legislature adjourned sine die on April 4, 2013.

Despite approving a budget for fiscal year 2014, lawmakers will need to return for a special session to reauthorize the Medicaid program. Reauthorization efforts stalled due to a dispute over whether to expand Medicaid under the Affordable Care Act.

A special session will be needed prior to the start of the fiscal year on July 1 to keep the program funded.

The Idaho Legislature adjourned its regular session sine die on April 4, 2013.

Before adjourning at 11:30 a.m., the Legislature finalized the $1.3 billion public education budget. It failed to pass by one vote at the end of March, with some lawmakers arguing that it codified the Students Come First laws rejected by voters last November.

The House also debated and passed a bill aimed at allowing school districts flexibility in adjusting teacher pay and contracts.

The seat for House District 95 will be filled by special election on May 14, 2013.

A runoff, if needed, will be held on June 4.

The seat was left vacant by the death of Representative Jessica Upshaw in March.

Photo of the Mississippi State House by Shawn Lea on Wikipedia.

On April 1^st, we added Comptroller Jeff Roberts to the 10-Year Club. He is now our sixth member to this exclusive club. This is a huge recognition at State and Federal Communications.

According to the Bureau of Labor Statistics, only 30 percent of employees had 10 year or more of tenure with their current employer. And, the median number of years with an employer is only 4.4 years.

Yesterday, we celebrated Jeff’s milestone and he mentioned so many things that have happened in 10 years.

• Staff increased from 13 to 36;
• Space increased from 8,200 sq feet to 16,000 sq feet;
• We published the updates to our Political Contributions and Lobbying Laws publications twice a year and now we update our website every day;
• We added the Procurement Lobbying and Canadian Lobbying to our suite of on-line services;
• Increased our consulting clients from 19 to 126; and
• The number of children from staff went from eight (8) to 32.

Jeff’s input into the operation of the company is not seen to the outside crowd, but he has been an amazing trusted employee making sure we are always ahead on bills and the IRS. And, as he mentioned at our program yesterday, has never worried as to whether he would be paid or whether benefits would be provided.

We live in a different society now. Tenure used to only be associated with academic careers. In the private sector, tenure is the faithful commitment to an employer who has proven there is worth to staying.

Thanks to Jeff Roberts for 10 years of faithful service.

Q. I am interested in making a political contribution in Puerto Rico. What are the current political contribution limits? Am I required to disclose my contribution?

A. In Puerto Rico, individuals and PACs may make contributions.  Direct corporate contributions are prohibited. Puerto Rico has recently raised the annual political contribution limits. In response to the Federal Election Commission raising the federal contributions limits in 2 U.S.C. §441a(a)(1)(A),  the Oficina del Contralor Electoral (OCE) issued Circulated Letter OCE-CC-2013-02. The circulated letter raises the individual and PAC contribution limits to $2,600 per candidate per year, with an aggregate contribution limit of $13,000.  In an election year, the limits are modified to $2,600 per candidate per election, and $13,000 in the aggregate per election. These contribution limits do not apply to independent expenditures.

There are no reporting requirements for individuals making contributions in Puerto Rico.  PACs, however, have a quarterly disclosure requirement for any quarter in which contributions were received or expenditures were made.  PACs established and registered in a jurisdiction other than Puerto Rico have separate reporting requirements under the campaign finance regulations issued by the OCE.

For specific guidance on making contributions in Puerto Rico, please contact Sarah Kovit.

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.

Governor Rick Scott has scheduled the special election for House District 2 for June 11, 2013.

A primary election will be held May 14.

The election will replace the late Representative Clay Ford, who lost his battle with cancer in March.