On Friday, December 16, Gov. Pat McCrory signed Senate Bill 4 into law. Senate Bill 4 merges the State Board of Elections with the State Ethics Commission and creates a new eight-member board split evenly between Republicans and Democrats.

The bill was introduced by Republicans in an attempt to limit the power of the executive branch before newly elected Democrats take power. Governor-elect Roy Cooper has stated that he plans to challenge the law in court as unconstitutional.

On December 16, the Commissioner of Political Practices’ proposed rule amendment increasing the threshold amount of payment triggering lobbyist and employer registration to $2,550 for 2017 and 2018 was adopted.

The payment threshold is adjusted by an inflation factor determined by the commissioner. The previous threshold amount was $2,500 for the calendar years 2015 and 2016.

See what’s happening in government relations this week in our News You Can Use Video Digest. Enjoy!

Several bills related to campaign finance were recently passed by the New York City Council.

Int. No. 1345-A will prohibit donations above $400 per year from people who are lobbyists, have city contracts, do business with the city, or non-governmental entities controlled by a local elected official or their agents. Int. No. 1352 will require a notice regarding the contribution limits for persons doing business with the city be provided to contributors. Additionally, Int. No. 1361-A will require contributions in a special election be counted towards the threshold for eligibility and matching for public funds candidates.

Some of the more technical bills will require public funds candidates to deposit contributions by a certain date (Int. No. 1351-A), mandate the Campaign Finance Board to prepare electronic disclosure reports to meet state disclosure requirements (Int. No. 1349-A), allow candidates to return campaign contributions to protect their reputational interest (Int. No. 1353-A), and require the doing business database to display the date a person is considered doing business with the city (Int. No. 1361).

The bills are awaiting the mayor’s signature and are effective as listed in the respective bills.

Minutes before midnight on December 12, 2016, Citizens Union (CU) filed a complaint against the State of New York alleging a violation of the First Amendment of the United States Constitution. CU seeks declaratory and injunctive relief from disclosure laws passed in June.

The new laws lowered the annual lobbying spending threshold from $50,000 to $15,000 for 501(c)4 organizations. Additionally, the new laws require 501(c)4 organizations to disclose donors who give more than $2,500. The complaint was filed in the United States District Court for the Southern District of New York.

Elections

“Stein Spent Nearly $1 Million of Recount Funds on Consultants, Staff, Admin Expenses” by Joe Schoffstall for The Washington Free Beacon

New Mexico: “Political Action Committees Spent Big in Closing Days of Election” by Morgan Lee (Associated Press) for Albuquerque Journal

Ethics

“Former Democratic Congressman Chaka Fattah Sentenced to Decade in Prison” by Deena Zaru for CNN

Connecticut: “Bilda, Hinchey to Face Ethics Hearings Over Derbygate” by Ryan Blessing for The Bulletin

New Hampshire: “Portsmouth Resident Tries Again With Ethics Complaint” by Jeff McMenemy for Seacoast Online

South Dakota: “Attorney General’s Office Pushes to Save Parts of Ethics Law” by The Associated Press for The Washington Times

Campaign Finance

Missouri: “KCMO Police Commissioner May Have Broken Missouri Law” by Andy Alcock for KHSB

New York: “Hearing Delayed in Staver-Sauer Case” by Andrew Setterholm for Post Bulletin

Wisconsin: “Report: PAC Spending on Wisconsin Legislative Races Soars in Wake of Campaign Finance Change” by Katelyn Ferral for The Capital Times

Legislative Issues

Missouri: “Missouri Democrats Push Anti-Corruption Agenda as Legislative Session Approaches” by Kurt Erickson for St. Louis Post-Dispatch

Lobbying

“Lobbying Muscle May Help Tech Titans Trump Trump” by Allan Holmes and Jared Bennett for Center for Public Integrity

Wisconsin state ethics commissioner Robert Kinney announced his resignation Monday. Kinney cited his disappointment in the agency as his reason for stepping down. He claims the relatively new Ethics Commission operates too secretly and does not adequately enforce ethics, campaign finance and lobbying rules.

Moreover, he contends several members of the commission demonstrate an obvious lack of commitment to the underlying purpose of the agency. In June, Gov. Scott Walker appointed Kinney from a pool of candidates provided by the Democratic Party.

Campaign Finance

“Activists Brace for Fight Over Campaign Finance Law” by Alex Roarty for Roll Call

Elections

“Completed Wisconsin Recount Widens Donald Trump’s Lead by 131 Votes” by Matthew DeFour for Wisconsin State Journal

Ethics

“Aaron Schock Pleads Not Guilty To Slew of Federal Charges” by Aryn Braun for Roll Call

Wisconsin: “State Ethics Commissioner Resigns, Citing Dysfunction in New Watchdog Agency” by Mark Sommerhauser and Molly Beck for Wisconsin State Journal

Legislative Issues

“Budget Shortfalls Expected in the Most States Since Recession” by Liz Farmer for Governing

Lobbying

“K Street Eyes Outgoing Lawmakers for Jobs” by Kate Ackley for Roll Call

“Exxon-Mobil: No Stranger to Lobbying the ‘Swamp’” by Lesley Clark (McClatchy) for The News & Observer

“Trump Transition Trade Staffer Defended NAFTA, was Chamber of Commerce Lobbyist” by Andrew Kaczynski and Chris Massie for CNN

Missouri: “Opinion: The Christmas Spirit of Lobbyists” by Phill Brooks for The Springfield Business Journal

Procurement

New York: “DiNapoli Proposes Procurement Reforms” by Matthew Hamilton for Times Union

Campaign Finance

Florida: “Dozens of Florida Political Committees Being Fueled by Millions in ‘Dark Money’” by Tia Mitchell for The Florida Times-Union

Massachusetts: “Campaign Finance Law Shields Violators” by Stephanie Ebbert for The Boston Globe

Elections

“Senate and House Leaders Call for Inquiry of Russian Hacking in Election” by Jennifer Steinhauer for The New York Times

Ethics

“Trump Invites Trouble if He Keeps Businesses: Ethics Experts” BY Bernard Condon and Julie Bykowicz (Associated Press) for McClatchy DC

“Why All Billionaire Politicians Are Not Created Equal” by Ruairi Arriet-Kenna for Politico

Lobbying

“Insurers Step Up Lobbying With an Eye to Health-Law Changes” by Anna Wilde Mathews and Louise Radnofsky for The Wall Street Journal

“Big Law Lobbying Efforts Fail to Kill 9/11 Litigation Against Saudi Arabia” by Michael D. Goldhaber for The American Lawyer

Missouri: “Lobbyist Gifts to Missouri Legislators Have Dropped Significantly” by Walker Moskop for St. Louis Dispatch

Texas: “Edinburg Hires DC Lobbying Firm” by Naxiely Lopez for The Monitor

Campaign Finance

Arizona: “What Ever Happened to The Investigations into Tom Horne?” by Yvonne Wingett Sanchez for Arizona Republic

California: “Contra Costa: Turmoil in DA’s office after agency head admits to violating California law” by Nate Gartrell by East Bay Times

Maine: “Ethics Commission Favors Shedding Light on ‘Dark Money’ in Maine Campaigns” by Kevin Miller for Portland Press Herald

Oregon: “Portland City Council Set to Revive Publicly Funded Campaigns – in 2019” by Jessica Floum for The Oregonian

Ethics

“Trump Could Keep D.C. Hotel Despite Conflict of Interest” by Isaac Arnsdorf for Politico

“Suspected of Corruption at Home, Powerful Foreigners Find Refuge in U.S.” by Kyra Gurney, Anjali Tsui, David Iaconangelo, and Selena Cheng for Miami Herald

Kentucky: “Tim Longmeyer Pleads Guilty to State Felony” by Tom Loftus for Louisville Courier-Journal

Massachusetts: “Antiboycott Groups Pay for State Officials’ Israel Trips” by Frank Phillips for Boston Globe

South Dakota: “South Dakota Judge Puts Government Ethics Overhaul on Hold” by James Nord (Associated Press) for Sioux Falls Argus Leader

Lobbying

“Trump Victory Sets Off a Tsunami of Lobbying Activity by Companies” by Steven Mufson and Ylan Mui for The Washington Post

Florida: “PBC School Board Imposes New Rules for Lobbyists” by Andrew Marra for Palm Beach Post

Elections

“Obama Orders Intelligence Report on Russian Election Hacking” by David Sanger and Scott Shane for The New York Times

Individuals who lobby the Palm Beach County School Board or top school district administrators are now required to register and disclose their activity. The School Board approved the new policy this week after more than a year of development.

The policy targets professional lobbyists hired by businesses while exempting unions, parent groups, sales representatives, and those lobbying on behalf of their own companies. Lobbyists are also prohibited from providing gifts in excess of $50.

Registration is required prior to engaging in lobbying and expires each year on June 30. A statement of expenditures must be filed on or before August 1 and lobbyists must sign an appearance log prior to each visit with the School Board.

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.

Maryland Lt. Gov. Boyd K. Rutherford, as chair of the Commission to Modernize State Procurement, released a report outlining a plan to update state procurement laws. The proposed regulations will update outdated statutory language and allow individuals to file applications and reports online.

Along with the report, Maryland unveiled a new procurement website, which will act as a singular procurement communications portal providing online access to procurement information. The new procurement information website can be viewed here.

The Alabama Ethics Commission (AEC) has suspended the implementation of an advisory opinion released in September. The controversial opinion expanded the definition of lobbyist principal to include anyone in the organization with authority such as executives, officers, and members of boards of directors.

Because lobbyists and principals cannot give a thing of value to legislators, the expanded definition of principal was a concern to nonprofits. At an AEC meeting on December 7, 2016, representatives of nonprofits stated many of their chief donors had ceased contributing over concerns about the expanded definition of principal. In response to those concerns, the AEC members voted to suspend the advisory opinion.