For the first time, the U.S. Securities and Exchange Commission (SEC) has charged a firm with violations of its pay-to-play rules. On June 20, the SEC charged TL Ventures Inc., a private equity firm, with receiving advisory fees from the pension funds of both Philadelphia and Pennsylvania after an associate of the firm had made campaign contributions in 2011 to the governor and a candidate for mayor.

Federal regulations prohibit investment advisers and their covered associates who make contributions to officials of state and local government entities from providing compensatory advisory services for two years following a campaign contribution. TL Ventures Inc. has agreed to settle the charges by paying nearly $300,000.

Lobbying

“Under Contract” in The Hill.

“MPAA’s Michael O’Leary steps down – Big 12 hires a lobbying firm” by Byron Tau in Politico.

Missouri: “Lobbyists’ gifts to Missouri lawmakers exceed $500,000” by Angela Mueller in the St. Louis Business Journal.

Campaign Finance

“BitPay, CoinVox Team Up to Allow Politicians to Accept Bitcoin” by Eric Calouro in NewsBTC.

Delaware: “Campaign finance reform bills languish in legislature” by Jonathan Starkey in The News Journal.

Massachusetts: “Bill would increase PAC disclosures” by Frank Phillips in the Boston Globe.

New York: “Blame Game After Push to Revamp Campaign Financing Ends” by Mike Vilensky in The Wall Street Journal.

North Carolina: “N.C. election laws ‘stuck in pre-computer age’” by Jim Morrill in the Charlotte Observer.

Vermont: “Advocacy group turns sights to money in politics” by Neal P. Goswami in the Rutland Herald.

Ethics

“Prosecutor asks court: Reinstate DeLay convictions” by Juan A. Lozano (Associated Press) in the Houston Chronicle.

“Grand Jury Probes Capitol Knowledge & Stock Trading” by Kent Cooper in Roll Call.

Hawaii: “Ethics Commission Tells Lawmakers How They Should Spend Allowances” by Nathan Eagle in the Honolulu Civil Beat.

Elections

New York: “This is what happens when a campaign finance scholar runs for governor” by Max Ehrenfreund in The Washington Post.

Wisconsin: “Jon Erpenbach drops appeal in email open records case” in the Journal Sentinel.

State Legislatures

South Carolina: “SC House OKs $12,000 pay raise for lawmakers, overriding Gov. Haley’s veto” by Cassie Cope in The State.

The Maine Commission on Governmental Ethics and Election Practices will no longer enforce the yearly aggregate contribution limit applicable to individuals and entities contained in Maine Revised Statutes section 1015(3). In a policy statement issued June 4, 2014, the commission cited recent U.S. Supreme Court decision McCutcheon v. FEC as authority for its determination.

The commission stated it will no longer enforce the $25,000 aggregate limit “unless and until it receives further guidance from the Maine Legislature or a court of competent jurisdiction.”

The policy statement also noted the commission’s intention to study the issues and perhaps propose legislation during the next state legislative session.

The Government Accountability Board (GAB) is seeking comment on new guidelines for lobbyist campaign contributions. Following changes to campaign fundraising rules pursuant to 2013 Wisconsin Act 153, GAB concluded a lobbyist may deliver or convey a campaign contribution on behalf of a political action committee, conduit, or other person to a candidate for any office at any time.

The draft changes to GAB guidelines 1249 and 1250 are available here. Comments should be sent to Division Administrator Jonathan Becker at jonathan.becker@wi.gov or (608) 267-0647 by June 2, 2014.

The Government Accountability Board (GAB) has concluded a recently signed law allowing lobbyists to personally give campaign contributions a couple of months earlier also prohibits them from providing such contributions on behalf of clients at any time.

Whether by design or by drafting error, a late amendment to Senate Bill 655 removed the provision to allow a lobbyist to deliver a client’s contribution at any time.

GAB will review the matter at its meeting on May 21, 2014. The Legislature would have to reconvene to fix a drafting error.

Hawaii Gov. Neil Abercrombie signed Senate Bill 2120 into law April 25. Immediately effective upon executive approval, the legislation corrects a mistaken reference to a section of the Hawaii Revised Code meant to exempt contributions from a candidate’s immediate family from general statutory contribution limits.

Contributions from immediate family are now limited in the aggregate to $50,000 in any election period, provided the aggregate amount of loans and contributions received from said family does not exceed $50,000 during an election period.

The Senate passed a bill to widen the ability of lobbyists to provide campaign contributions. Senate Bill 655 allows a lobbyist to deliver or personally make political contributions as early as April 15 of a general election year. Currently, lobbyists must wait till June 1 to personally make contributions.

A proposal to allow lobbyists to deliver campaign contributions during a floorperiod did not pass. The bill now goes to the Assembly.

The Oklahoma Ethics Commission recently passed a series of rule changes pertaining to political contribution limits. Under the new rules, the dollar restrictions on contributions to state candidates would change from family limits to individual limits.

Each person would be allowed to give up to $2,600 to a candidate per election. The old rules prohibit families from donating more than $5,000 to a candidate in a political campaign.

Lee Slater, executive director of the Oklahoma Ethics Commission, believes the family contribution limit to be unconstitutional as it discriminates against a married person. The new rules, also changing individual contribution limits to political parties and PACs, will go into effect unless they are rejected, in whole, by the Legislature.

The 10th U.S. Circuit Court of Appeals ruled the lower court was right in issuing a preliminary injunction to keep the state from imposing limitations on certain contributions going to and from political parties and political action committees.

The underlying issue in the case is whether political committees not formally affiliated with a political party or candidate can receive unlimited contributions for independent expenditures.

The state Republican Party, GOP lawmakers, and others argue the state’s cap on such contributions is unconstitutional. The state appealed, arguing limiting such contributions is in New Mexico’s interest as it tries to prevent corruption and the appearance of corruption in campaign spending.

The case now moves back to the federal district court where a decision on the merits is expected to be in favor of those challenging the contribution limits.

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.

On October 15, 2013, an Arizona Court of Appeals directed the secretary of state not to enforce the law concerning contribution limits enacted in House Bill 2593, which had became effective on September 13, 2013.

According to the Arizona Daily Star, the courts’ three-judge panel found the new law illegal without explaining the basis of its decision. The lawsuit challenging the constitutionality of the new law was brought by the Citizens Clean Elections Commission and others from the state.

Changes in the law include allowing individuals and noncertified political committees to give $2,000 to candidates running for legislative and statewide offices who do not participate in the state’s Citizens Clean Elections Act campaign financing system and removing the aggregate contribution limitations for individuals and some political committees.

Lobbying

“ALL Response to Rep. David Cicilline (D-RI-1) Suggestion to Ban Lobbyists from the Capitol” on the American League of Lobbyists website.

“K Street sidelined in shutdown fight” by Ann Palmer in Politico.

California: “California Strategies walks line between lobbying and public affairs” by Laurel Rosenhall in the Sacramento Bee.

New Mexico: “Ex-official won’t lobby state, company says” by Thomas Cole in the Albuquerque Journal.

Tennessee: “Lobbyists spent more on entertainment in 2013” by The Associated Press in WRCB TV News.

Campaign Finance

“Three Things to Watch for in Tomorrow’s Campaign Finance Oral Argument at the Supreme Court” by Rick Hasen on the Election Law Blog.

“Supreme Court set to consider donor limits” by Byron Tau in Politico.

“After Citizens United, Campaign Finance Reformers Look For A Bold New Approach” by Paul Blumenthal in The Huffington Post.

“Get ready for ‘Son of Citizens United’” by Mary Sanchez in The Chicago Tribune.

Minnesota: “Attorney Christian Sande named to Minnesota Campaign Finance board” by Joe Kimball in MinnPost.

Ethics

Georgia: “Ethics lawyer says chairman pressured her to settle Deal cases” by Aaron Gould Sheinin in the Atlanta Journal-Constitution.

New York: “Ethics laws outdated, not used” by Alysia Santo in the Times Union.

South Carolina: “STATE HOUSE FOR SALE: SC ethics law a muddled mess” by Adam Beam in The State.

Virginia: “Gift scandal puts pressure on lawmakers to make changes” by Olympia Meola and Jim Nolan in the Richmond Times-Dispatch.

West Virginia: “Statehouse Beat: Another bad mark for W.Va.” by Phil Kabler in the Gazette-Mail.

West Virginia: “Statehouse beat: A lot of road time on the state dime” by Phil Kabler in the Gazette-Mail.

On the State Ballots

“Pot, Gambling and GMOs on the Election Ballot” by Jake Grovum in Stateline.

Campaign Tech and Social Media

“Parnell campaign reports email error” by Becky Bohrer (Associated Press) in the Juneau Empire.

The DuPage County Board repealed its pay-to-play provisions after learning from the state’s attorney’s office the provisions were unenforceable. As a non-home rule county, the county did not have the power to act on limiting campaign contributions because it was not specifically granted that power by the state legislature.

The changes were enacted as part of an otherwise minor update to the county’s ethics code. Provisions requiring disclosure of campaign contributions by contractors remain in place.

The House has passed a bill to overhaul ethics laws, including campaign finance and lobbying. House Bill 3945 creates the Joint Committee on Ethics and the Public Integrity Unit to investigate complaints and replace the separate House and Senate ethics committees.

The bill includes new reporting requirements for campaign contributions just before an election and extends lobbyist registration and reporting for individuals lobbying local governments and school boards.

A final approval on Wednesday, May 1, 2013, allows the bill to meet the crossover deadline for Senate consideration. If sent any later, the bill would need a two-thirds vote for Senate passage.