November 1, 2012 •
501(c)(4) Group Ordered to Disclose Contributors
Contributions funded ballot measure ads
An Idaho judge ordered Education Voters of Idaho (EVI), a 501(c)(4) nonprofit, to disclose the names of its contributors.
EVI contributed more than $200,000 to Parents for Education Reform, which spent the funds on television commercials in support of three school reform ballot measures, but claimed that as a 501(c)(4), it was exempt from state disclosure requirements. The judge disagreed, ruling that the disclosure requirements applied to all individuals, corporations, associations, and entities of any kind.
EVI filed its disclosure statement on October 31st, as ordered by the court, and is contemplating an appeal of the order.
November 1, 2012 •
Eye on the Races – November 1, 2012
Electoral Math: A Brief Primer on the Electoral College
With election day less than a week away, the electoral college is still perhaps the most influential and simultaneously least understood aspect of American Presidential elections. After tens of millions of votes are cast, only 270 are required to be elected President of the United States. Established under Article II, Section 1 of the U.S. Constitution, the electoral college was later amended by both the twelfth and twentieth amendments to arrive at its current form. The idea is that states vote for the President and Vice President, and the people vote for the legislature. This method was essentially a compromise between those who wanted Congress to elect the President versus those who prefered a nationwide popular vote.
Each state is allotted a number of electors equal to the size of its congressional delegation. For example, Ohio’s 18 electoral votes equal it’s 16 members of the House of Representatives and two Senators. With a total of 538 electors (Washington D.C. is allotted three votes despite having no voting members in Congress) a majority of 270 is required to win election. Though the process varies, electors are generally selected by the political parties at statewide conventions or by each parties central committee’s. On election day, voters choose the electors by casting votes for one of the Presidential candidates on the ballot. With the exception of Maine and Nebraska, all of a state’s electors are awarded to the candidate who receives the most total votes. Maine and Nebraska award electors proportionally allowing these states to award votes to more than one candidate.
The electors meet to cast votes on the first Monday following the second Wednesday in December in their respective states, and send the certified results to Congress. Congress then counts the official tally in a joint session on January 6 following the year of the electors meeting. While there is no Constitutional provision or federal law that requires an elector to cast a ballot based on the popular vote of their respective states, most state and party laws require electors to adhere to popular vote pledges. Additionally, the Supreme Court has traditionally held that electors must vote consistent with the results in their states. In practice, electors generally do not go against the will of the electorate. According the National Archives, the official record keeper of Presidential elections, less than 1 percent of electoral voters have not voted in accordance with the popular vote historically.
Essentially what all of this means is that each candidate is focused on a small number of states that are likely to go either way instead of running nationwide campaigns trying to win the popular vote. Based on a number of recent maps drawn from incessant polling and statistical models, there are between 7 and 9 states still rated as toss-ups in the election (FL, CO, IA, NC, NH, NV, OH, VA, WI). Without the electoral votes offered by these states, President Obama currently has between 237 and 243 electoral votes (NV leans D in some projections) to Governor Mitt Romney’s 191 to 206 votes (NC leans R in some projections).
If there is any confusion as to which states each candidate deems vital to winning the election, look no further than each campaigns schedule over the next few days. Both President Obama and Governor Romney will present their closing arguments in each of the aforementioned swing states hoping to turn that last undecided voter before election day. And if you’re still curious, keep in mind that no republican has EVER won the Presidency without winning Ohio, so expect to see a lot of the Romney campaign in the buckeye state.
To learn more about the electoral college visit the National Archives and to build your own electoral map and lay the path to 270 for each candidate, visit 270towin.com.
November 1, 2012 •
Thursday News Roundup
Lobbying, Campaign Finance, Ethics
From the States
“Capitols After Dark: A Haunting Prospect” by Mark Wolf in NCSL’s The Thicket.
Lobbying
“Romney Would Limit Lobbyist Roles” by Damian Paletta and Brody Mullins in The Wall Street Journal.
Campaign Finance
“Billionaires, outside groups fueled pricey campaigns” by The Associated Press in the Dallas Morning News.
“30 Issues: Why You Should Care About … Campaign Finance” by Ibby Caputo on WGBH.
California: “Limit on campaign contributions may be increasing the spending of outside groups” by Stephen Hobbs in the Richmond Confidential.
Ethics
“City Council OKs overhaul of ethics board” by Fran Speilman in the Chicago Sun Times.
Campaigns and Elections
“Romney Campaign Will Use Smartphones To Track Voter Turnout” by Sarah Lai Stirland in TechPresident.
“Why there won’t likely be an electoral vote/popular vote split — in one map” by Chris Cillizza in The Washington Posts’ The Fix.
November 1, 2012 •
Ask the Experts – In-Kind Contribution, or Lobbying Expenditure?
Here is your chance to “Ask the Experts” at State and Federal Communications, Inc.
Q. I am a registered lobbyist who was asked to make an in-kind contribution on behalf of my company for an event to be held by a state political party. Is this permissible?
A. As a registered lobbyist, your contributions may be governed by two sets of laws: campaign finance and lobbying.
First, you must determine whether the state would consider the in-kind payment to be a contribution or a lobbying expenditure.
If the in-kind payment is determined by the state’s governing body to be a contribution, then this contribution must be compliant with the campaign finance laws. You must first determine if the amount and source of funding are permissible. Assuming permissibility of the contribution, potential restrictions on contributions facilitated by lobbyists and the reportability of contributions facilitated by lobbyists will need to be reviewed. In some states, once the in-kind contribution is made, the lobbyist and the lobbyist’s principal may not have additional involvement with the planning of the event, but will be permitted to attend.
Where the state considers the in-kind payment to be a lobbying expenditure and not a political contribution, you must ensure that the expenditure will not exceed the state’s gift limit. The pro-rata share of the expenditure attributable to all public officials who attend the event may be reportable on a disclosure report.
While this analysis will vary from state to state, it is important to be cautious when making in-kind payments.
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 31, 2012 •
North Dakota Federal Court Prohibits Enforcement of Campaign Law
Yard signs and electioneering to be permitted on election day
A federal court’s preliminary injunction has found the state’s 100-year ban on election-day campaigning to be an unreasonable restraint on free speech. The lawsuit was filed by the Center for Competitive Politics, a pro-free speech group. The Center represents Gary Emineth, who wishes to post yard signs on his property, distribute fliers, and discuss the upcoming election with his neighbors.
The North Dakota statute bans any person, on election day, from trying to induce or persuade others to support or oppose any candidate or ballot measure.
The court’s ruling also orders state officials to refrain from prosecuting any person for a violation of N.D.C.C. §16.1-10-06 for the pendency of the case.
October 31, 2012 •
Wednesday Lobbying and Campaign Finance News
Here is our government relations news roundup for today:
Lobbying
“K Street Lobbyists Ready for Post-Sandy Disaster Aid Requests” by Kate Ackley and Janie Lorber in Roll Call.
“The Hill’s 2012 Top Lobbyists” in The Hill.
“5 Wisconsin lawmakers settle suit with groups seeking ALEC emails” by Jason Stein in the Milwaukee Journal Sentinel.
Campaign Finance
“Outside cash trumps candidates’ in half a dozen tight races” by Kevin Bogardus and Megan R. Wilson in The Hill.
California: “Judge backs Jerry Brown, FPPC on Arizona campaign donations” by Kevin Yamamura in the Sacramento Bee.
Oklahoma: “Oklahoma candidates accept corporate contributions, afoul of state law” by Megan Rolland in The Oklahoman.
Oklahoma: “Chickasaw Nation leads state superPAC donors” by Randy Kehbiel in the Tulsa World.
Campaigns and Elections
“Where’s Your Polling Location? On IOS 6, There’s Now An App To Help You Find Out” by Sarah Lai Stirland in TechPresident.
October 29, 2012 •
Monday News Roundup
Let’s start off the week with these lobbying, campaign finance, and ethics news articles:
“Federal Offices, Metrorail System in Washington Closed Monday” in the National Journal.
Lobbying
“Lobby shop revenues continue fall” by Catherine Ho in the Washington Post.
“K Street Lobbyists Hit the Campaign Trail in Virginia” by Kate Ackley in Roll Call.
“Jack Abramoff on America’s bipartisan culture of corruption” by Joseph Cotto in the Washington Times.
Michigan: “Most term-limited Michigan officials stay in government or lobbying” in the Lansing State Journal.
Campaign Finance
“In state races, N.Y.C., Albany dominate campaign donations” by Jon Campbell in the Democrat and Chronicle.
Ethics
“Ron Paul-Inspired Group Lobbies for Bill Prompted by Paul Reimbursements” by Jonathan Strong in Roll Call.
Campaigns and Elections
“Campaign lawyers gear up for nail-biter election” by Michael Knigge in Deutsche Welle.
October 29, 2012 •
Massachusetts OCPF Extends Pre-election Report Due Date
11:59 p.m. on Tuesday, October 30, 2012
Because of the state of emergency declared in advance of Hurricane Sandy, the Massachusetts Office of Campaign & Political Finance (OCPF) has issued a notice extending the due date of pre-election reports until 11:59 p.m. on Tuesday, October 30, 2012. Reports covering activity from August 20 to October 19 were to be due October 29.
Although its office is closed today, the OCPF notice states, “Office staff will be checking their office voice mail during the day on Monday and will be returning calls to assist filers as they are able.”
October 26, 2012 •
One Last News Roundup for the Week
Enjoy your weekend!
Lobbying
“American League of Lobbyists asks for end to registration loopholes” by Kent Hoover in the New Mexico Business Weekly.
“K Street’s Q4 Expectations” by Michael Catalini in the National Journal’s Influence Alley.
Ohio: “Ethics laws could get overhaul” by Jim Siegel in The Columbus Dispatch.
Campaign Finance
“Former IRS Official Accuses ALEC of Lying About Assets” by Janie Lorber in Roll Call.
“Poll: Majority wants corporate money out of politics” by Jordy Jager in The Hill.
California: “California Watchdog Sues Arizona Nonprofit over Secret Donation” by McClatchy News in Governing.
New York: “Bill: Jail campaign finance report scofflaws” by Rick Karlin in the Albany Times Union.
New York: “Super PAC clout under challenge” by Jimmy Vielkind in the Albany Times Union.
Campaigns and Elections
“Presidential election hits $2B fundraising mark” by Beth Fouhy in The Associated Press.
“Bing Releases ‘One-Stop-Shop’ for Election 2012 Info” by Alex Fitzpatrick in Mashable.
“Survey: Campaign contributors stick to traditional tools” by Josh Smith in Nextgov.
Ethics
Alaska: “Alaska state Senate candidate Bell fined $390 by APOC over disclosure requirement” by The Associated Press in The Republic.
October 26, 2012 •
News You Can Use Digest – October 26, 2012
Here are highlights from the latest edition of News You Can Use:
Federal:
K Street Flags Shortcomings of Lobbying Law
From the States and Municipalities:
Arizona
Judge: Listing of PAC contributors unconstitutional
California
California’s Campaign Finance Watchdog Agency Demands Names of Donors to Shadowy Arizona Group
California
Judge Rejects Former Bell Police Chief’s Bid to Double Pension
Florida
State Ethics Commission: David Rivera broke 11 ethics laws while serving in Florida Legislature
Georgia
Atlanta Region Sees Spike in Public Corruption Cases
Idaho
Idaho Sues to Force Disclosure of Secret Donations
Illinois
Appeals Court Allows Illinois Limits on Campaign Financing
Iowa
‘Donations’ to State Agency Let Landlords Avoid Charges
Kentucky
Ethics Panel Wants Lobbyists to Report Ad Spending
Montana
Supreme Court Won’t Block Montana Campaign Finance Law Ahead Of Elections
New Jersey
Infamous Federal Informant Solomon Dwek Is Sentenced to Six Years, Must Pay $22.8 Million
North Dakota
Campaigning Fargo Candidate Finds Body under Tree
Tennessee
With Registry’s Ruling, Burchett Case Closed
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.
October 25, 2012 •
Pay-to-Play to Expand in Jersey City
Board of Education Candidates
Two separate pay-to-play ordinances were proposed at yesterday’s meeting of the Jersey City Council. While one proposal was not approved by the council, the remaining ordinance will be considered for a final vote on November 14, 2012.
The surviving ordinance expands the existing pay-to-play law by placing restrictions on vendors contracting with the city from contributing to Board of Education candidates.
Aerial photo of Jersey City courtesy of Creative Commons on Wikipedia.
October 25, 2012 •
Thursday Campaign Finance and Ethics News
Here is a short roundup of articles for you:
Campaign Finance
“Obama’s Campaign Quick to Capitalize on Text-to-Donate Option” by Janie Lorber in Roll Call.
Idaho: “Idaho sues to force disclosure of secret donors” by Betsy Z. Russell in the Spokesman Review.
South Carolina: “‘Secret’ money targets some SC legislators” by Gina Smith in The State.
Ethics
“Florida ethics panel hits David Rivera with 11 counts” by John Bresnahan in Politico.
Tech and Social Media
“Illinois Open Technology Challenge Seeks Innovative Apps” by Colin Wood in Government Technology.
“FCC May Consider Whether Unsolicited Email To Text On Mobile Phones Is Legal” by Sarah Lai Stirland in TechPresident.
October 25, 2012 •
Appellate Court Rejects Injunction Request, Upholds Illinois Contribution Limits
Case goes back to trial court to determine constitutionality of state’s contribution limits
The Seventh U.S. Circuit Court of Appeals ruled that Illinois’ limits on campaign financing will remain in force at least through the upcoming general election. Illinois Liberty PAC initially sought an injunction to suspend the limits, but its effort was refused by the district court. They appealed and the appellate court ruled that the PAC’s attorneys “have not shown that they are likely to succeed on the merits of their challenge to contribution limits.”
The case will now go back to the district court, where the actual merits of the case can be decided. The PAC claims that the limits violate their First Amendment right to free speech and their equal protection rights because it allows political parties to spend unlimited amounts of money, while limiting contributions from other sources.
The PAC was not surprised by the ruling saying, “We knew it was going to be an uphill battle.”
October 25, 2012 •
Elizabeth Bartz Receives Kent State Award
Congratulations to you Elizabeth!
On October 19, 2012, Elizabeth Bartz, President and CEO of State and Federal Communications, received the Kent State University School of Journalism and Mass Communication William D. Taylor Distinguished Alumni Award.
According to the event program:
“The William D. Taylor Award is the highest distinction given by the School of Journalism and Mass Communication to alumni who are nationally and/or internationally recognized for preeminent contributions to their professions or life’s work as they relate to the field of journalism and mass communication.”
Here is Elizabeth Bartz’s acceptance speech:
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.