Lobbying

California: “California political watchdog sets sights on major cases” by Christopher Cadelago in The Sacramento Bee.

Florida: “Lobbying group wants a say in auditing process” by Rochelle Koff in Miami Herald’s Naked Politics blog.

Utah: “Las Vegas business leaders broaden approach to DC lobbying” by the Las Vegas Review-Journal.

Campaign Finance

“Supreme Court may strike new blow to campaign funding laws” by David G. Savage in the Los Angeles Times.

Arizona: “Campaign finance law throws twist at candidates” by The Associated Press in KSAZ Fox10 News.

Arkansas: “Ethics panel: Candidate’s corporation can’t provide free office space” by John Lyon in the Arkansas News.

Delaware: “Illegal donations to Jack Markell’s 2008 campaign discovered” by Maureen Milford in The News Journal.

Wisconsin: “Political Conduits: Pouring Millions Into Wisconsin Elections” by Tim Morrissey in Public News Service.

Ethics

“Senate confirms Obama’s FEC nominees” by Byron Tau in Politico.

Georgia: “Claims in ex-Ga. Ethics Commission leader’s lawsuit call agency’s independence into question” by The Associated Press in the Seymour Tribune.

Georgia: “LaBerge Gets Raise As Ethics Comm. Cuts Costs” by The Associated Press on Georgia Public Broadcasting.

State Legislatures

Florida: “Lawmakers return to Tallahassee for committee week” by Michael Van Sickler in the Miami Herald.

Lobbying

“K Street powerhouse lobbies for green energy tax bill” by Ben Geman in The Hill.

Campaign Finance

New York: “Reform advocate spends big money” by Jimmy Vielkind in the Times Union.

New York: “Citing Irregularities, City Board Rejects Public Money for Liu’s Campaign” by David W. Chen in The New York Times.

Ethics

“FEC commissioner: New emails could tie agency to IRS targeting” by Blake Neff in The Hill.

Missouri: “Creator of Missouri Ethics Commission nominated for federal bench” by Jo Mannies in the St. Louis Beacon.

New Hampshire: “Ethics committee: Special E-ZPasses don’t violate gift limits for N.H. lawmakers” by Ben Leubsdorf in the Concord Monitor.

New Jersey: “Appeals court affirms dismissal of ethics complaint against assemblyman” by Matt Friedman in the Star-Ledger.

Utah: “Panel investigating Attorney General John Swallow to hold first meeting” by John Swallow in the Deseret News.

Virginia: “Cuccinelli pushes for special session on ethics rules” by Julian Walker in The Virginian-Pilot.

Redistricting

California: “SoCal Rep. Lowenthal takes a big swing at redistricting with new bill” by Kitty Felde on KPCC News.

National:

States Try to Tackle ‘Secret Money’ in Politics

Federal:

Campaign Contribution Limits Broken Repeatedly In 2012 Election with No FEC Oversight

From the States and Municipalities:

Alabama – Campaign Finance Law Revisions Pass House; Headed Back to Senate

Georgia – Gov. Deal Signs Law capping Georgia Lobbyist Spending at $75 a Go

Hawaii – How One Lawmaker Blocks Hawaii’s Ethics Reforms Year after Year

Kansas – Seventy-Four Percent of Lobbyist Spending on Kansas Lawmakers Unaccounted For

New Jersey – Judge Approves $728,300 in Bonuses for Employees of Engineering Firm Accused of Campaign Finance Violations

New York – Senator in Corruption Case Spoke of Silencing Witnesses, Prosecutors Say

North Carolina – Private Conservative Group ALEC Carries Sway in Legislature

Pennsylvania – Orie Melvin Must Write Apology Letters to Pennsylvania Judges on Photos of Herself

South Carolina – South Carolina Sends Mark Sanford Back to House

Tennessee – Tom Ingram Faces Heat over Lobbying Pay

Texas – Lobby Disclosure of Consulting Ties Passes the Senate

Vermont – House OKs Cap on Donations to Super PACs

Washington – Lobbyists Spend Big Bucks on Dinners, Other Tabs for Lawmakers

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 Federal Election Commission (FEC) issued a unanimous Advisory Opinion concluding same-sex couples married under state law are precluded from making joint federal political contributions from an individual bank account.

A same-sex couple married under Massachusetts law sought to make a political contribution to Dan Winslow, a candidate for the United States Senate.

The contribution check included instructions to attribute the contribution separately and equally between both individuals, even though the check was drawn from one of the individual’s bank account.

11 C.F.R. 110.1(i) provides spouses a legal exception to the prohibition on making a contribution in the name of another person. However, the term “spouse” is not defined in the Federal Election Campaign Act of 1971 or the Commission’s regulations.

The Commission relied the Defense of Marriage Act (DOMA) interpretation of spouse referring “only to a person of the opposite sex who is a husband or a wife”.

In AO 2013-02, the FEC concluded DOMA prohibits applying the exception under 11 C.F.R. 110.1(i). The Commission distinguished a contribution made from a joint account, rather than an individual account, in a footnote to the opinion, noting, “Same-sex couples (whether married under state law or not) may as joint account holders make contributions in a manner similar to that afforded spouses under 11 C.F.R. 110.1(i).”

The Commission concluded its analysis and conclusions “may be affected by subsequent developments in the law including, but not limited to, statutes, regulations, advisory opinions, and case law”.

Leaders of corporations, unions, and other organizations responsible for independent political advertisements may have to be identified if a bill introduced in the U.S. Senate yesterday passes.

Senate Bill 791 was introduced jointly by Senators Ron Wyden (D-Ore.) and Lisa Murkowski (R-Alaska). The bi-partisan bill, called The Follow the Money Act of 2013, requires entities, regardless of tax status, to identity the funders of any political activity in which the entity engages.

An organization involved in political activity not regulated under the Federal Election Campaign Act will also be subject to a separate set of Internal Revenue Service penalties, including the possible loss of its federal tax exemption.

The Federal Election Commission will be required to replace quarterly reporting with a more frequent reporting schedule and will be required to disclose the information to the general public upon receipt.

Senator Wyden’s press release can be found here.

Video courtesy of Sen. Wyden’s YouTube channel.

Campaign Finance

“Watchdogs call for new campaign regulator to replace ‘woefully inept’ FEC” by Megan R. Wilson in The Hill.

“Campaign Finance Poll Finds Most Support Donation Limits” by Emily Swanson in the Huffington Post.

Arizona: “2 Arizona bills target campaign finances” by Mary Jo Pitzl in the Arizona Republic.

Montana: “Campaign finance reforms bills pass Montana House vote” by Marnee Banks in KBZK News.

New York: “Conference to tackle lobbying and campaign finance” by Ilene Fleischmann in the UB Reporter.

Lobbying

Alaska: “Alaska: Who’s lobbying Alaska’s lawmakers? And for how much?” by Laurel Andrews in the Alaska Dispatch.

Florida: “Lobbying a lucrative cap for a legislator’s career” by Aaron Deslatte in the Orlando Sentinel.

Georgia: “Lobbying Restrictions Vote Scheduled” by The Associated Press in Georgia Public Broadcasting.

Ethics

Utah: “Ethics bill emerges in wake of probes of Utah Lt. Gov Bell, Swallow” by Robert Gehrke in the Salt Lake Tribune.

Today the United States Supreme Court decided to grant a review to a case challenging the aggregate limits on federal campaign contributions. The case, McCutcheon v. Federal Election Commission, seeks to allow Shaun McCutcheon to make political contributions to several federal candidates exceeding the two-year aggregate limit currently set at $48,600 as provided in 2 U.S.C §441a(a)(3)(A).

Photo of Supreme Court building by UpstateNYer in Wikipedia.

The Federal Election Commission (FEC) has published the 2013-2014 election cycle contribution limits indexed for inflation. As required by the Bipartisan Campaign Reform Act of 2002, the FEC must adjust certain contribution limits every two years.

The individual and non-multicandidate PAC contribution limit to federal candidates has increased from $2,500 to $2,600 for both primary and general elections, allowing for a total of $5,200 for a federal candidate. The overall biennial limit for individuals has increased to $123,200, with a maximum of $48,600 for all candidates and $74,600 for all PACs and parties. Among the other adjustments is the increased contribution limit of $32,400 per year to national parties from individuals and non-multicandidate PACs.

Lobbying

“K Street Files: Defense, Tax Aides Join McBee” by Kate Ackley in Roll Call.

“Lobbying World” in The Hill.

California: “Former assemblyman registers as a lobbyist” by Laurel Rosenhall in the Sacramento Bee.

Georgia: “Georgia speaker unveils sweeping ethics legislation” by Chris Joyner in the Atlanta Journal Constitution.

Missouri: “Lawmaker: Legislators should never become lobbyists” by Bob Watson in the News Tribune.

Campaign Finance

“FEC Increases Contribution Limits for 2014” by Kyle Trygstad in Roll Call.

Montana: “Montana legislators, groups at odds on campaign donation limits” by Mike Dennison in the Missoulian.

New York: “On Campaign Finance Reform, Senate Republicans Stand in Gov. Cuomo’s Way” opinion piece by John Petro in the Huffington Post.

Ethics

“Ethics Office Opened 32 Cases During 112th Congress” by Amanda Becker in Roll Call.

Hawaii: “Honolulu Ethics Commission Wants to Double Its Resources to Fight Public Corruption” in the Hawaii Reporter.

Illinois: “Former state ethics commissioner hit with $2,500 ethics violation” by Rafael Guerrero in the Chicago Tribune.

Maine: “Bill would bar state officials from quitting to immediately work for industries they regulated” by Naomi Schalit and John Christie in the Bangor Daily News.

New York: “NY ethics board talks conflicts in secret session” by The Associated Press in the Albany Times Union.

New York: “Ex-aide to City Controller John Liu snared in campaign finance fraud probe is granted immunity to testify in former treasurer’s trial” by Robert Gearty in the New York Daily News.

South Carolina: “SC Supreme Court to hear Nikki Haley ethics case” by Andrew Shain in The State.

Elections

Michigan: “Snyder nixes plan to split Michigan electoral votes” by Alexander Burns in Politico.

Ohio: “State Sen. Turner proposes election reform package” by Joe Hallett in the Columbus Dispatch.

Ohio: “Secretary of State Jon Husted and other Republicans say Electoral College changes not in store for Ohio” by Henry J. Gomez in the Plain Dealer.

Open Government

Mississippi: “Mississippi gets low grades for transparency on state, local websites” by Donna Harris in the Sun Herald.

South Dakota: “Legislature: Public records plan falls short” by David Montgomery in the Argus Leader.

Lobbying

“Newly unemployed lawmakers buzzing about million-dollar lobbying jobs” by Kevin Bogardus in The Hill.

California: “Interactive graphic: Hidden lobbying expenses” by Sharon Okada in the Sacramento Bee.

California: “California’s lobby laws keep many influence-peddling details secret” by Laurel Rosenhall in the Sacramento Bee.

Nevada:  “Lobbyists sit through ethics training in Carson City” by David McGrath in the Las Vegas Sun.

“Two Buerkle staffers land jobs with Washington, D.C., lobbying firms” by Mark Weiner in the Post-Standard.

Campaign Finance

“Money in Politics This Week” by Syed Zaidi in the Brennan Center for Justice Blog.

“FEC Appointments Are Deciding the Future of Campaign Finance” by Alex Gauthier in the Independent Voter Network.

Mississippi:  “Judge sets trial date for campaign finance case” by The Associated Press in the Mississippi Business Journal.

Wisconsin:  “Mike McCabe featured speaker, topic is Campaign Finance Jan. 26 public meeting” in the Bay View Compass.

Ethics

“Harry Reid Disavows Report Linking Him to Bribery Case” by Neils Lesniewski in Roll Call.

Texas:  “Some State Legislators Blur Line Between Public and Private Interests” by Emily Ramshaw in The New York Times.

State Legislatures

“More than Half of State Legislatures Convened this Week” by Angela Andrews in NCSL’s The Thicket blog.

Washington: “Key players to watch in the Washington Legislature, which convenes Monday” in the Seattle Times.

The Presidential Inauguration

“Critics Decry Looser Rules For Inauguration Fundraising” by NPR in Oregon Public Broadcasting.

“Fund-Raising Is Lagging, So Far, for Inaugural Plans” by Nicholas Confessore in The New York Times.

“An inauguration first: Apps” by Steve Freiss in Politico.

The Federal Election Commission issued an Advisory Opinion on December 6, 2012, concluding a federal candidate’s campaign committee may make a contribution to an independent expenditure-only committee from funds raised for the federal candidate’s terminated political campaign.

Friends of Mike H, the principal campaign committee of former candidate Mike Haridopolos, requested an opinion to determine whether it could give $10,000 or more of its excess funds raised for Mr. Haridopolos’s 2012 U.S. Senate primary election campaign in Florida, from which he withdrew, to an independent expenditure-only committee called Freedom PAC. Currently, Mr. Haridopolos does not hold federal office and is not seeking any elected federal office.

Because Friends of Mike H. is not using its funds for personal use or for any unlawful use, the Commission found Mr. Haridopolos’s political committee may make its requested contributions to Freedom PAC. The Commission also noted that “amount limitations are generally unconstitutional as applied to contributions that will be used to finance independent activity.”

A Federal District Court has held Congress may constitutionally bar federal contractors from contributing to candidates, parties, and their committees.

Finding in favor of the Federal Election Committee (FEC), the United States District Court for The District of Columbia granted a summary judgment on Friday, November 2.

In Wagner v. FEC, the Court rejected challenges to the constitutionality of section 441c of Title 2 of the U.S. Code, which prohibits any vendors with contracts with the federal government from making political contributions to federal candidates or political parties.

The case, initially brought by the ACLU, asked the Court to declare the law unconstitutional as applied to individuals who have personal services contracts with federal agencies. Because federal workers who are not contractors may make federal political contributions, while contractors performing the same work may not, the suit argued section 441c violates both the Equal Protection Clause of the Constitution and the First Amendment.

The Court found no First Amendment or Equal-Protection violations, noting “the dissimilar roles of contractors and employees, moreover, justify the distinct regulatory schemes that the Government has fashioned.”

Today the FEC posted an article answering some questions about political contributions made and received by text messaging.

The article can be found here.

A federal appellate court has reversed a district court’s electioneering reporting decision, sending the issue back to the FEC.

The significance of today’s decision, pending further possible rule changes or court decisions, is that political contributors giving to an organization making an electioneering communication will not have to be disclosed to the FEC unless the donor specifically earmarks his or her contributions to fund electioneering communications.

This was the rule from 2007 until this spring when a district court ruled that all contributors giving over $1,000, regardless of whether they gave for the specific purpose of electioneering communications, had to be disclosed to the FEC.

In the initial lawsuit, Van Hollen v. FEC, the plaintiff,  U.S. Representative Van Hollen, claimed the FEC regulation 11 C.F.R. §104.20(c)(9), which requires disclosure only of those making contributions over $1,000 to an entity for the purpose of furthering electioneering communications, contradicts the statute requiring disclosure of all donors making contributions over $1,000.

In the spring, a U.S. district court agreed and declared 11 C.F.R. §104.20(c)(9) invalid and vacated the regulation. The court reinstated the FEC’s prior regulation, which was promulgated on December 17, 2002 and was in effect until December 25, 2007. The FEC had formally reiterated the district court’s requirement on July 27, 2012, retroactively applying the disclosure of donors to March 30, 2012.

Today, in Center for Individual Freedom v. Van Hollen, the U.S. Court of Appeals for the District of Columbia Circuit reversed Van Hollen v. FEC, vacated the district court’s prior judgment, and remanded the case to the district court. Presently, under the jurisdiction of the district court, the FEC must pursue rulemaking to address the issues brought by the lawsuit or defend 11 C.F.R. §104.20(c)(9) in court against the parties bringing the action.

This is a signature issue for Representative Van Hollen who will probably continue to vigorously litigate this issue.

The FEC has not publicly declared its next course of action.