Q. In what ways are my company and I allowed to get involved in the 2016 national party conventions?

A. The opportunities for individuals and companies to involve themselves in this year’s party conventions are legion, but caution must be exercised to avoid running afoul of the many intersecting laws governing your interaction with the delegates and other officials in attendance as well as the committees putting on the conventions.

Convention delegates and those seeking selection as delegates are subject to the federal contribution rules, which means corporations, labor organizations, foreign nationals and businesses, and federal contractors are not permitted to make contributions. However, those permitted to contribute may do so without limits. Delegates who are public officials are subject to the gifts laws governing the office they hold. In other words, federal officials are subject to federal gift laws, state officials are subject to state gift laws, and local officials are subject to any state and local laws applicable to their office.

Individuals and organizations seeking to become involved with the conventions may contribute to the convention host committees. The host committees are nonprofit organizations set up to encourage commerce in and project a favorable image of the convention city. Organizations and individuals may donate money and make in-kind donations to the host committee to defray the costs of the convention, including costs related to promoting the city and welcoming attendees, providing information and samples to attendees, administrative expenses, providing the use of convention facilities, transportation, law enforcement, hotel rooms, accommodations and hospitality for party site selection groups, and for other convention-related facilities and services.

Convention committees are related to the national party organizations and therefore federal campaign finance laws apply. As a result, direct and in-kind contributions using funds from a corporation, labor organization, foreign nations and businesses, and federal contractors are prohibited. Goods and services may be provided to the national committee in the ordinary course of business. Obviously, it’s quite important to distinguish the host committees from the convention committees. Thankfully, both host committees, the Cleveland 2016 Host Committee and the Philadelphia 2016 Host Committee, use the word “host” in their official names.

The national party conventions represent high profile ways to gain exposure both personally and for your organization. This high profile is also why compliance with the rules governing your dealings with committees, delegates, and attendees is so important.

You can directly submit questions for this feature, and we will select those most appropriate and answer them here. Send your questions to: experts@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.

Lobbying

“Gov2Gov: The lobbying that falls under the radar” by Mike Maciag for Governing

Rhode Island: “Raimondo: Lobbying law makes rules ‘clear, simple, consistent and transparent’” by Jennifer Bogdan for Providence Journal

Campaign Finance

Alabama: “Koch Brothers’ Plight Likened to That of Civil Rights Workers in the 1950s” by John Dunbar for Center for Public Integrity

Arizona: “Possible Hack Shuts Down Online Portal to Public Campaign Financing” by Howard Fischer (Capitol Media Services) for East Valley Tribune

Minnesota: “Minnesota Campaign Watchdog Agency Director to Retire” by Rachel Stassen-Berger for St. Paul Pioneer Press

Ethics

“Is the Supreme Court Clueless About Corruption? Ask Jack Abramoff” by Carl Hulse for New York Times

Kentucky: “Lexington’s Ethics Act to Add Domestic Partners to Nepotism Ban” by Beth Musgrave for Lexington Herald-Leader

New York: “In Inquiry into Ex-Cuomo Aide, Disclosure Form Only Adds Mystery” by Vivian Yee for New York Times

South Carolina: “S.C. Ethics Commission Chief to Retire” by Avery Wilks for The State

Elections

“Nate Silver Is Happy to Be Wrong” by Glenn Thrush for Politico

Lobbying

“The Lobbying Reform That Enriched Congress” by Isaac Arnsdorf for Politico

“Lockheed’s Top Government Affairs Official Not Registered as Lobbyist” by Austin Wright and Jeremy Herb for Politico

Minnesota: “Lobbying in Minnesota: Spending has nearly doubled since 2002” by Rachel Stassen-Berger for St. Paul Pioneer Press

New York: “JCOPE Shut Down in Lobbying Reform” by Michelle Kraidman for Queens Chronicle

Oregon: “Ethics Watchdog Wants Tighter Lobbyist Registration Rules – Will Kate Brown Say Yes?” by Hillary Borrud for Portland Oregonian

Campaign Finance

Michigan: “Unions Win Injunction Blocking Michigan Fundraising Law” by Jonathan Oosting for Detroit News

Montana: “Call for Special Legislative Session Fails” by Troy Carter for Bozeman Daily Chronicle

Ethics

“F.B.I. Director James Comey Recommends No Charges for Hillary Clinton on Email” by Mark Lander for New York Times

Colorado: “Independent Ethics Commission Shuts Down Public Livestream of Meeting” by Marianne Goodland for Colorado Independent

Connecticut: “Anthem-Cigna Controversy Exposes Gaps in Ethics Rules” by Mark Pazniokas for Connecticut Mirror

Hawaii: “ACLU Lawyer to Be State Ethics Chief” by Rui Kaneya for Honolulu Civil Beat

Idaho: “Major Campaign Finance Reform Initiative Falls Short, Won’t Be on Ballot” by Betsy Russell for Spokane Spokesman-Review

A U.S District Court has issued a preliminary injunction against provisions of Senate Bill 571, which enable corporations to deduct PAC contributions from employees’ paychecks while prohibiting labor unions from doing the same.

The ruling supporting the court’s decision cited freedom of political speech and evenhanded application of law as reasons for the injunction.

This is the second provision of the law to be successfully challenged; earlier in the year, a federal judge halted a different portion of the law prohibiting communication with community residents regarding ballot proposals during the 60 days prior to an election.

Lobbying

“The Lobbying Reform That Enriched Congress” by Isaac Arnsdorf for Politico

Arizona: “Arizona Governor Fires State’s Contract Lobbyists” by Yvonne Wingett Sanchez for Arizona Republic

Missouri: “Aldermen Vote Down Measure Banning Lobbyists on the Floor” by Rachel Lippmann for St. Louis Public Radio

Campaign Finance

“‘Feel Bern’ PAC Comes Under Scrutiny” by Megan Wilson for The Hill

Arizona: “Drive to Expand Public Campaign Financing Fizzles” by Mary Jo Pitzl for Arizona Republic

Georgia: “Atlanta City Councilman Faces Hundreds of Campaign Finance Allegations” by Maggie Lee for Creative Loafing

Ethics

Hawaii: “ACLU Lawyer to Be State Ethics Chief” by Rui Kaneya for Honolulu Civil Beat

New York: “Operative Tied to Cuomo Is Accused of Bribing Judge to Get Favorable Rulings” by Vivian Yee for New York Times

National:

Report: It’s harder to know who’s paying for political ads
Star Tribune – Geoff Mulvilhill (Associated Press) | Published: 6/27/2016

A report by New York University’s Brennan Center finds the use of so-called dark money in several states has increased faster than in national elections. Across six states – Alaska, Arizona, California, Colorado, Maine, and Massachusetts – dark money expenditures rose by 38 percent between 2006 and 2014, outstripping the 34 percent rate of increase found in federal elections. And that does not include other categories of nontransparent outside money. The report defines “gray money” as expenditures by entities that do disclose their contributors, but who also list dark money organizations as donors, making it difficult or impossible to locate the original source of the money.

Two Transgender Candidates – Both Named Misty – Just Made History by Winning Primaries
Washington Post – Amber Phillips | Published: 6/29/2016

Primary voters in Utah and Colorado selected transgender women to run for spots in Congress next fall, a first in major-party American political history. Misty Snow will run against U.S. Sen. Mike Lee in Utah this November, while Misty Plowright will challenge U.S. Rep. Doug Lamborn in Colorado. Neither Snow nor Plowright sought to make their gender identities a campaign issue, instead focusing on progressive issues like getting money out of politics. Their wins come as transgender rights have been thrust into the national spotlight after contentious debates in states like North Carolina. “This is even more breathtaking considering the political climate today, the uphill curve to educate people about who transgender people are,” said Bob Witeck, a Washington, D.C.-based LGBT advocate.

Federal:

Bernie Sanders Campaign Showed How to Turn Viral Moments into Money
New York Times – Nick Corasaniti | Published: 6/24/2016

Like most modern campaigns, U.S. Sen. Bernie Sanders and his team relied on widely used digital fundraising tactics, like sending email solicitations and advertising online. They raised more than $61 million and acquired more than three million email addresses directly from digital ads. But the campaign was also able to harness social media networks – which, until recently, most candidates had used primarily for messaging purposes – and turn them into fundraising engines, allowing Sanders’ team to raise money almost exclusively online. The campaign raised roughly $216 million of its nearly $230 million total online.

Donald Trump and R.N.C. Crack Down on Rebelling Delegates
New York Times – Jeremy Peters | Published: 6/26/2016

Donald Trump’s campaign and the Republican National Committee (RNC) are moving quickly and aggressively to head off the fledgling effort to stage a revolt at their July convention in Cleveland, hoping to spare the party an embarrassing spectacle that could deeply wound the presumptive nominee. They are employing hard-nosed tactics, warning delegates that attempting to undermine Trump’s claim to the nomination violates party rules, and threatening to deny speaking slots to Republicans they deem disloyal for not backing him. The RNC and the campaign are also installing loyal party stalwarts in key party positions to help ensure they maintain control of the convention if rogue delegates attempt a disruption. And they are trying to discredit Republicans who are advocating an interpretation of party rules that would allow delegates to vote for anyone they want on the first ballot.

Trump Fundraising Emails Overseas Prompt Complaints Here and Abroad
Washington Post – Sean Sullivan and Max Bearak | Published: 6/29/2016

Donald Trump’s campaign sent a wave of fundraising emails in recent days to lawmakers in the United Kingdom, Iceland, Australia, and elsewhere. The solicitations prompted watchdog groups to file two separate complaints with the FEC alleging the campaign was violating federal law by soliciting funds from foreign nationals. The episode is only the latest fundraising stumble by Trump’s presidential campaign, which has been scrambling to put together a financial operation to take on the well-funded campaign of likely Democratic nominee Hillary Clinton. Whether the snags prove to be growing pains for a campaign that until recently eschewed traditional fundraising or a sign of more serious stumbles to come is a key question facing Trump and the Republican Party as the general election comes into focus.

From the States and Municipalities:

California – At the Corner of Power and Poverty
CALmatters – Laurel Rosenhall | Published: 6/28/2016

The Capitol in Sacramento serves as a magnet for money and power. Nearby shops sell fine cigars and custom suits. A bar serves $16 martinis. But the streets that surround the building also are home to some of the city’s most destitute residents, many suffering from mental illness or drug addiction in addition to extreme poverty. It is not uncommon to see them rifling through trash cans, shouting incoherently, or sleeping barefoot in the shade on the Capitol’s manicured grounds. Bridging these two worlds is Debbie Bartley, who stands across the street selling Homeward, a newspaper produced by homeless people. She chats with the political staffers and lobbyists who give her a few dollars as they pass by. Then she buys food for people who sleep on these streets.

California – Sweeping Public Utilities Commission Changes Announced
Sacramento Bee – Jeremy White | Published: 6/27/2016

A deal between Gov. Jerry Brown and state lawmakers will bring major changes to the California Public Utilities Commission. When commissioners engage in ex-parte conversations around rate-setting rules, they would need to disclose them online under the agreement. The state attorney general could bring enforcement actions against people who violate the rules. The deal also clarifies that people who lobby the PUC would need to register as lobbyists. Through March of this year, more than 50 utilities and other lobbyist employers reported more than $6.3 million in PUC-connected lobbying activities.

Connecticut – Cigna-Anthem Merger: Gov. Malloy’s Insurance Regulator Told Ethics Officials She Was Not Involved in Cigna Issues, even as Her Agency Was
International Business Times – David Sirota | Published: 6/27/2016

Connecticut ethics officials are now investigating whether it is legally permissible for the state’s insurance commissioner to oversee the government’s review of her former company’s proposed merger. In regulators’ probe of conflict-of-interest issues in the Cigna-Anthem transaction, one question they may ask is whether the commissioner in question, former Cigna lobbyist Katharine Wade, deliberately misled them. Emails show that in February, Wade told ethics officials she had no Cigna business before her, even though her agency was then leading the national multistate review of the company’s merger plan, and even though Wade had repeatedly met with the company’s representatives. Wade’s letter to ethics officials did tell them that her staff was reviewing the merger, but did not disclose any information about her own contacts with the companies and their lobbyists.

Delaware – Supreme Court Rejects Challenge to Delaware Election Law
Wilmington News Journal – Jessica Masulli Reyes | Published: 6/28/2016

The U.S. Supreme Court rejected a conservative group’s challenge to Delaware’s campaign finance law. The justices left in place a lower court ruling allowing the 2012 law to be enforced. It requires third-party groups and individuals to disclose their donors to the state elections commissioner if they publish advertisements or other communications, including Internet postings, that refer to a candidate in the 60 days before an election. Previously, only groups that directly advocated for or against a candidate were required to disclose their donors.

Kentucky – Bevin Asserts Control of All Ethics Board Appointments
Lexington Herald-Leader – Jack Brammer | Published: 6/28/2016

Kentucky’s attorney general and state auditor will no longer be able to nominate members of the Executive Branch Ethics Commission under a new executive order from Gov. Matt Bevin. The governor appoints the members of the commission, which investigates allegations of state ethics code violations in the state’s executive branch. But in 2008, then-Gov. Steve Beshear issued an executive order requiring the governor to appoint two members of the commission that had been recommended by the attorney general and the state auditor. Bevin repealed that order, effectively allowing him to control all of the appointments to the board assigned to hold his administration accountable. Bevin spokesperson Jessica Ditto said the order simply returns the appointment process to the system state lawmakers intended.

New York – Bill Would Expand Disclosure for Donors to Lobbying Groups
Albany Times Union – Chris Bragg | Published: 6/29/2016

Under a 2011 law, charitable tax-exempt nonprofits in New York are not required to report their donors, even if the organizations have financially supported lobbying efforts meant to influence state government. Based on comments from state lobbying officials, a bill that Gov. Andrew Cuomo is expected to sign appears to require any charitable organization making a contribution over $2,500 to a substantial New York lobbying campaign to publicly disclose every one of its donors, even those unrelated to the lobbying effort. That would include both donations of staff and other resources for a charity to a lobbying nonprofit, or a monetary contribution.

Ohio – As Activists Prepare to Protest the RNC, the FBI Comes Knocking
Los Angeles Times – Matt Pearce | Published: 6/27/2016

In July, Donald Trump will come to Cleveland to claim the Republican presidential nomination. Given how turbulent some protests outside Trump rallies have been, and that the convention comes just weeks after the worst mass shooting in recent U.S. history, finding the right balance between security and First Amendment rights will be a challenge. Shivers have gone through the Cleveland activist community since law enforcement officials began knocking on their doors as tens of thousands of visitors prepare to come to town. The FBI office in Cleveland said the visits were part of their plans with state and local law enforcement to prepare for the convention by “working collaboratively with members of the community.”

Virginia – Supreme Court Vacates Ex-Virginia Governor’s Graft Conviction
New York Times – Adam Liptak | Published: 6/27/2016

The U.S. Supreme Court unanimously vacated the conviction of former Virginia Gov. Robert McDonnell. He was charged with using his office to help Jonnie Williams Sr., who had provided McDonnell and his wife with gifts worth more than $175,000 when McDonnell was governor. The gifts themselves were legal; the question was whether they were part of a corrupt bargain in which McDonnell reciprocated by using the power of his office to help Williams. The Supreme Court ruled prosecutors defined too broadly the kind of conduct that qualifies as an “official act.” Chief Justice John Roberts said the law cannot punish politicians for giving their constituents access to public officials who are willing to listen, but do not actually exercise government power.

State and Federal Communications produces a weekly summary of national news, offering more than 60 articles per week focused on ethics, lobbying, and campaign finance.

Under Senate Bill 8160, charities donating to state lobbying nonprofits could be subject to new disclosure requirements.

If signed into law, the bill would require any charitable organization donating over $2,500 to New York lobbying campaigns to disclose all of its donors, including those unrelated to lobbying efforts. To determine the donation amount, in-kind donations of staff or other resources will be included, in addition to monetary donations. Public disclosure would then follow if the State Attorney General’s Office verifies no individual donor would be harmed by release of the information.

Gov. Andrew Cuomo is expected to sign the bill.

The Orange County Board of Supervisors approved a first reading of an ordinance to establish a county ethics commission.

The ordinance was introduced after the passage of Measure A, which called for the county to amend its charter and campaign finance ordinance to establish a five-member commission to provide administrative oversight of county ethics and campaign ordinances.

Discussions at the ordinance’s first reading mostly dealt with staff and budget issues relating to the commission, and there is no timeline yet for when the commission will actually be up and running. The ordinance is scheduled for a second reading and possible adoption on July 12, 2016.

Lobbying

Massachusetts: “Uber Proves Profitable for at Least One Group – Lobbyists” by Jim O’Sullivan for Boston Globe

Campaign Finance

“Pro-Hillary Group Takes $200K in Banned Donations” by Harper Neidig and Jonathan Swan for The Hill

Maine: “Maine Ethics Panel Aims to Close Loophole ‘You Could Drive a Truck Through’” by Darren Fishell for Bangor Daily News

New Jersey: “Proposed Pay-to-Play Reforms Pit Fulop Against Longtime Foes” by Terrence McDonald (Jersey Journal) for Newark Star-Ledger

Ethics

California: “Supervisors Approve Budget and Staffing Plan for Ethics Commission” by Nick Gerda for Voice of OC

California: “At the Corner of Power and Poverty” by Laurel Rosenhall for CALmatters

Massachusetts: “Grand Jury Indicts Second Official in Boston Mayor Marty Walsh’s Administration” by Gintautas Dumcius for MassLive.com

New York: “Ethics Reform Brings Less Information About JCOPE Probes” by Chris Bragg for Albany Times Union

Oregon: “Lawmaker’s Actions Questioned by Portland Police Officer” by Gordon Friedman for Salem Statesman-Journal

Elections

Utah: “Two Transgender Candidates – Both Named Misty – Just Made History by Winning Primaries” by Amber Phillips for Washington Post

The U.S. Supreme Court declined to hear a challenge to the Elections Disclosure Act. The lower court ruled requiring third-party groups and individuals to disclose their donors if they publish advertisements or other communications referring to a candidate in an upcoming election is constitutional. The law furthers the purpose of the 2012 ethics overhaul by closing loopholes allowing anonymous campaign-related advertising.

Photo of the U.S. Supreme Court building by UpstateNYer on Wikimedia Commons.

Campaign Finance

“House Democrats Face Ethics Complaints for Fundraising Off Sit-In” by Paul Singer for USA Today

“Soft Money Ban Should Be Scrapped, Skeptical Judges Urged” by Kenneth Doyle for Bloomberg BNA

“Bernie Sanders Campaign Showed How to Turn Viral Moments into Money” by Nick Corasaniti for New York Times

Delaware: “Supreme Court Rejects Challenge to Delaware Election Law” by Jessica Masulli Reyes for Wilmington News Journal

Mississippi: “Hosemann to Start Searchable Campaign Finance System” by Geoff Pender for Jackson Clarion-Ledger

Ethics

Kentucky: “Bevin Asserts Control of All Ethics Board Appointments” by Jack Brammer for Lexington Herald-Leader

New Mexico: “Judge: Legislators must testify in Griego case” by Dan Boyd for Albuquerque Journal

North Carolina: “Sen. Fletcher Hartsell Indicted by a Wake County Grand Jury” by Anne Blythe and Lynn Bonner for Raleigh News & Observer

Wisconsin: “New Ethics Commission Names 3 Finalists for Administrator Position” by Matthew DeFour for Wisconsin State Journal

Elections

“As Activists Prepare to Protest the RNC, the FBI Comes Knocking” by Matt Pearce for Los Angeles Times

Lobbying

California: “Sweeping Public Utilities Commission Changes Announced” by Jeremy White for Sacramento Bee

Campaign Finance

“Report: It’s harder to know who’s paying for political ads” by Geoff Mulvihill (Associated Press) for Las Vegas Sun

Kentucky: “Ethics Commission OKs Crowdfunding for Legislative Campaigns” by Ryland Barton for WFPL

Massachusetts: “State’s Chief Campaign Official Seeks Heftier Fines for PACs” by Matt Stout for Boston Herald

Ethics

Connecticut: “Cigna-Anthem Merger: Gov. Malloy’s Insurance Regulator Told Ethics Officials She Was Not Involved in Cigna Issues, even as Her Agency Was” by David Sirota for International Business Times

Florida: “Opa-locka’s Ethics Switcheroo Draws Laughs amid FBI Corruption Probe” by Jay Weaver for Miami Herald

South Carolina: “Gov. Nikki Haley Signs Ethics Reform into Law, Endorses Sen. Larry Martin” by Maya Prabhu for Charleston Post & Courier

Virginia: “Supreme Court Vacates Ex-Virginia Governor’s Graft Conviction” by Adam Liptak for New York Times

Elections

“Donald Trump and R.N.C. Crack Down on Rebelling Delegates” by Jeremy Peters for New York Times

Redistricting

North Carolina: “Supreme Court to Review NC’s Use of Race in Redistricting” by Jonathan Drew (Associated Press) for ABC News

Boulder City Council has adopted two new ordinances creating a new municipal election code and updating campaign finance rules.

The city will no longer be dependent on the state election code, and city staff will no longer need to continually update the code for local elections based on state legislative changes. Other cities, including, but not limited to, Denver, Colorado Springs, and Fort Collins, have adopted similar local codes.

The changes also clarify campaign finance disclosure requirements; campaigning done without cost, such as the use of social media, need not be disclosed. Critics believe the new provisions were rushed and encourage a lack of transparency.

Lobbying

Rhode Island: “Raimondo Signs Bills on Lobbying, Insurance for Off-Label Drug Use, Teaching of Holocaust” by Jennifer Bogdan for Providence Journal

Campaign Finance

“RNC Fundraisers Hedge on Trump” by Kenneth Vogel and Alex Isenstadt for Politico

Massachusetts: “House Passes Campaign Finance Changes Aimed at Transparency, Special Elections” by Shira Schoenberg for MassLive.com

Ethics

“Justices Disclose Privately Paid Trips and Gifts” by Adam Liptak for New York Times

Arizona: “How Nearly $1 Million Disappeared from Surprise Coffers” by Jessica Boehm for Arizona Republic

California: “Orange County Finally Has an Ethics Commission – Now What?” by Jordan Graham for Orange County Register

Florida: “Audit Finds City Improperly Paid Lobbying Firm More Than $317,000” by Christopher Hong for Florida Times Union

Elections

“Who Does Donald Trump Listen to? Other Trumps.” by Mary Jordan and Jose DelReal for Washington Post

“Will Trump Swallow the GOP Whole?” by Mark Leibovich for New York Times