On January 12, the Federal Election Commission (FEC) was unable to agree on a policy to clarify when and if a U.S. domestic subsidiary corporation of a foreign national is illegally involved in political activity.

Federal law prohibits foreign nationals from directly or indirectly making contributions, donations, expenditures, independent expenditures, and disbursements in connection with federal, state, or local elections. FEC regulations also prohibit foreign nationals from directing, controlling, or participating in the decision-making process of any person, such as a corporation, with regards to decisions concerning the making of contributions, donations, expenditures, or disbursements in connection with elections in the U.S.

Additionally, the FEC was unable to reach an agreement on the creation of a safe harbor for political committees to accept corporate contributions deemed not to have come from foreign national sources.

In response, Vice Chair Caroline C. Hunter and Commissioners Matthew S. Petersen and Lee E. Goodman issued a statement.

A previous attempt to reach an agreement on this issue in September also failed.

On Tuesday, January 10, the D.C. Council introduced several bills aimed at limiting big donors’ influence and increasing transparency in campaign fundraising. Citizens have accused Mayor Muriel E. Bowser, a Democrat, of participating in pay-to-play politics.

One of the bills introduced would block contractors from city business for two years following a political contribution to a candidate or political committee.

Bill 22-0038 would increase the number of lobbying reports by requiring monthly filings. Currently, reports are due twice a year.

On January 1, the Election Finances Statute Law Amendment Act took effect, prohibiting political contributions from corporations and labor unions and lowering the province’s contribution limits from individuals.

The new law also prohibits all provincial politicians, candidates, and senior political staffers from attending fundraising events, with certain exceptions.

Third-parties, who currently face no spending restrictions on advertising, are now limited to $100,000 per election period and $600,000 in the six months before a general election is called.

Constitutional Amendment 2, a reform measure approved in November, is facing a second legal challenge in federal court from plaintiffs who claim the amendment unconstitutionally restricts free speech and association.

The suit was filed by Farmers State Bank and Herzog Services, with additional plaintiffs including the American Democracy Alliance, Missourians for Worker Freedom, Freedom PAC, the Free and Fair Election Fund, and John Elliott, a citizen. Plaintiffs contend the amendment’s contribution restrictions impermissibly prohibit corporate (including nonprofit) contributions in ballot measure and judicial retention campaigns.

A separate suit was filed by the Association of Missouri Electrical Cooperatives earlier in December.

A South Dakota judge has issued a preliminary injunction on Initiated Measure 22. Initiated Measure 22 was approved by the majority of South Dakota voters last month as an act to revise campaign finance and lobbying laws.

The injunction will give the courts and the Legislature time to consider the measure, which has been widely criticized as being poorly drafted and possibly unconstitutional. Supporters of Initiated Measure 22 are expected to ask the judge to re-instate portions of the law not challenged by the plaintiffs, such as the provisions dealing with lower caps on campaign contributions.

The Association of Missouri Electrical Cooperatives filed suit Wednesday morning in federal district court challenging changes to campaign finance laws that became effective December 8.

Voters approved the changes via a constitutional amendment on the November ballot. Among other things, the amendment establishes contribution limits for individuals and entities supporting statewide and judicial candidates, as well as prohibits certain corporate and labor union contributions.

The Association of Missouri Electrical Cooperatives unsuccessfully attempted to block the statewide referendum prior the November election; an appeals court stopped its lawsuit because it would not consider campaign restrictions not yet in effect. The new suit alleges the campaign finance changes violate free speech rights as they unfairly limit some businesses and associations from participating in political campaigns.

The staff of the Maine Ethics Commission (MEC) will propose legislation to the Commission on Governmental Ethics and Election Practices at a meeting on December 8, 2016, to enhance the public’s understanding of major contributors to political committees.

The statutory proposal would require national organizations contributing more than $100,000 to Maine-based political committees to file a one-time report with MEC detailing basic contact information about the national organization, a responsible officer, the form of the organization, and a description of its purpose. The report would require the organization to provide the top five sources of funding received during the previous 12 months. Failure to file a report could result in a $50,000 penalty.

If the statutory proposal is approved by the commissioners, it would then go to the Legislature for consideration.

The regular legislative session is fast approaching and is set to convene January 9, 2017. With 30 days before the official start date, December 10, 2016, will mark the date legislators and state executive officeholders may not solicit or accept campaign contributions until the session adjourns.

Candidates may accept contributions that were made on December 9 or earlier, including contributions that were mailed and bear a December 9 postmark.

The Election Finances Statute Law Amendment Act was passed by the Legislative Assembly on December 1, 2016. It was introduced after an investigation into pay-to-play fundraising and cash for access scandals.

The investigation revealed that corporations and lobbyists had spent up to $10,000 to buy time with cabinet members in seeking policy decisions and contracts. The new amendment will prohibit all provincial politicians, candidates, and senior political staffers from attending fundraising events and ban contributions from corporations and unions.

In addition to these prohibitions, donations from individuals are limited to $1,200 per political party annually, down from $9,975 under the current system. Third-parties, who currently face no spending restrictions on advertising, will be capped at $100,000 per election period and $600,000 in the six months before a general election is called. A spending cap will also be placed on political party advertising at $1 million in the six months before a general election is called.

The bill was passed despite negative feedback regarding loopholes in the legislation. It will go into effect on January 1, 2017.

On Nov. 17, California’s Fair Political Practices Commission (FPPC) approved regulations to make biennial cost of living adjustments to campaign contribution and gift limits that will apply from Jan. 1, 2017, through Dec. 31, 2018.

The newly amended regulations change the gift limit from $460 to $470 and makes increases to campaign contribution limits.

On November 16, 2016, Gov. Andrew Cuomo released a statement proposing plans to limit campaign contributions and close loopholes for those doing business with the state.

In response to contracting scandals at state universities, Cuomo intends to appoint inspectors general to investigate fraud and abuse at the State University of New York and the City University of New York.

Furthermore, Cuomo will appoint a chief procurement officer to review all state contracts and grants for the purpose of re-establishing public trust. The entire statement can be accessed here.

Photo of Governor Cuomo courtesy of Pat Arnow on Wikipedia.

The New York City Council plans to hear legislation aimed at limiting contributions from contributors who have city business to groups directed or affiliated with an elected official.

The bill, yet to be released publicly, will likely limit contributions to hundreds of dollars and require city or public officials to report contributors annually.

The bill will likely be introduced to City Council within two weeks.

On October 4, Ontario’s campaign finance bill banning corporate contributions was referred to a standing committee. Bill 2, Election Finances Statute Law Amendment Act, 2016, was introduced in the Legislative Assembly of Ontario in September to amend the current campaign finance laws.

The bill prohibits corporations, unions, and unincorporated groups not affiliated with political parties from making political contributions to parties, candidates, constituency associations, and nomination and leadership contestants.

Individuals, who may now make political contributions in the amount of up to $33,250, would be limited to maximum contributions of $3,600. Specifically, an individual could give $1,200 to a party each year, $1,200 to the candidates of a party in an election period, and $1,200 to the constituency associations and nomination contestants of a party each year. Additionally, individuals would be limited to giving a maximum of $1,200 to each leadership contestant of a party per calendar year. Among the other changes in the bill are disclosure requirements for political parties concerning fundraisers.

If passed, the law would come into force on January 1, 2017.

On November 17, the Fair Political Practices Commission (FPPC) will consider proposed regulations to make biennial cost of living adjustments to campaign contribution and gift limits that will apply from January 1, 2017 through December 31, 2018.

The proposed regulations would change the gift limit from $460 to $470 and make increases to campaign contribution limits.

The FPPC is accepting written comments on the proposals until November 15, 2016.