On October 1, the U.S. District Court for the Southern District of New York ruled state laws enacted in 2016 requiring disclosure of donors to tax exempt organizations to be invalid.

In Citizens Union of the City of New York, et al., v. Attorney General of the State of New York, the U.S. District Court found provisions in the state’s ethics laws requiring entities exempt from federal taxation under 26 USC §§501(c)(3) and 501(c)(4) to publicly report donors under certain circumstances to be unconstitutional.

The district court found the disclosure of funding sources requirement for 501(c)(3) entities making an in-kind donation over $2,500 to a 501(c)(4) entity engaged in lobbying violates the First Amendment because it chills speech and burdens donors’ rights to free association and privacy.

The district court also struck down the rule requiring 501(c)(4) to publicly disclose donors if the entity makes a public statement that refers to the position of an official regarding any potential legislation.

The second provision was found to intrude on donors’ right to express opinions anonymously.

The Joint Commission on Public Ethics (JCOPE) launched new search function capabilities from its lobbying application.

JCOPE website users can now choose “Lobbying Focus” to search for recorded lobbying on specific bills, resolutions, and regulations at both the state and municipal levels.

The new “Parties Lobbied” tool allows users to see which specific agencies or lawmakers were lobbied and on what subject.

The public search is available at https://jcope.ny.gov/lobby-data-demand.

On July 24, The New York City Charter Revision Commission released a final draft report on proposed amendments to the city charter.

The commission proposed Ballot Question 3 relating to ethics and governance including extending the post-employment appearance ban for elected officials and senior appointed officials.

Additionally, the question limits political activity and donations by members of Conflicts of Interest Board.

The proposal would increase the prohibition of city elected officials and senior appointed officials from appearing before the agency or branch of government the official served in after leaving service from one year to two years.

The amendment would also prohibit members of the COIB from participating in campaigns for local elected office and reduce the maximum amount members can contribute in each election cycle.

Voters will be presented the proposals on the November 5 general election ballot.

If passed, the proposed post-employment ban would become effective January 1, 2022.

The New York State Joint Commission of Public Ethics announced an extension for the submission of bimonthly reports for the May to June reporting period until July 31.

JCOPE extended the deadline due to ongoing technical difficulties with the online Lobbying Application.

This extension corresponds with the previously announced extension for client semiannual reports and source of funding disclosures.

The commission is working to fix the issues and further updates will be announced on the JCOPE website.

On July 11, the New York Joint Commission on Public Ethics launched the ability to file client semi-annual reports and source of funding information through the online Lobbying Application for the 2019-2020 reporting period.

JCOPE has granted an extension to all clients to file the client reports until July 31.

The extension only applies to semiannual reports and source of funding disclosures; lobbyist bimonthly reports are still due on July 15.

JCOPE has also produced a guideline “How to Properly Disclose Lobbying Activities” on their website to assist proper disclosure.

The New York State Legislature adjourned on June 21.

During the legislative session lawmakers passed a bill closing a limited liability company loophole regarding contribution limits.

The bill limits annual political spending by an LLC to $5,000, the same limit as corporations.

The Legislature also passed election reforms relating to early voting, creating a unified June primary for federal and local elections, and upgrading election technology.

The New York Joint Commission on Public Ethics will be enabling the ability to file client semiannual reports and source funding disclosures through the online Lobbying Application on July 8.

Due to the short time frame of enabling the ability to file online and the statutory due date, JCOPE has granted an extension to submit client reports until July 31.

The extension only applies to semiannual reports and source of funding disclosures; lobbyist bimonthly reports are still due on July 15.

Nassau County Executive Laura Curran introduced a new vendor code of ethics and vendor portal for doing business with the county.

The code of ethics addresses issues with gifts or contingent fees; employment negotiation restrictions during and after procurements; conflicts of interests; appearance by former county employees; and non-collusion.

The code applies to all county vendors, will be incorporated into all contracts, and will require prime vendors to distribute the terms of the code to all subcontractors.

The vendor portal allows for vendor and principal registration, viewing solicitations, integrity submissions, and other future functions for procurement activities.

In the upcoming days, the Offices of the County Executive and Chief Procurement Officer will post the vendor compliance presentation and code of ethics to the county website.

The New York City Campaign Finance Board will hold a public hearing on proposed amendments to the Campaign Finance Program.

Amendments address disclosure, contributions, expenditures, public fund payments, and disclosure of independent expenditures.

Proposed rules amend and clarify the following sections:

• The reporting requirement of an in-kind contribution’s fair market value
• The next contribution limit adjustment to occur in 2022
• Enumerate the categories of prohibited contributions
• Cash contributions from a single source
• Attribution of expenditures after the date of a contested primary
• Update other provisions of the Campaign Finance Program

The public hearing on the proposed rules will take place on June 13.

Gov. Andrew Cuomo signed three bills relating to elections and campaign finance on January 24.

Assembly Bill 776 requires limited liability companies making expenditures for a political purpose to file with the State Board of Elections the identity of all direct and indirect owners of the membership interests and the proportion of ownership in the LLC.

Assembly Bill 779 creates a consolidated statewide primary election date and changes the protocol for calling a special election.

Senate Bill 1102 enacts early voting in the state.

Assembly Bill 779 and Senate Bill 1102 are effective immediately, and Assembly Bill 776 is effective January 31.

Gov. Andrew Cuomo has proposed several campaign finance and ethics changes in his executive budget.

These recommendations include creating a code of conduct for lobbyists and campaign finance reform.

The lobbyist’s code of conduct would include lowering the registration threshold, require reporting of campaign contributions, increase the revolving door provision from two to five years, along with additional disclosures and penalties.

Cuomo also called for banning corporate contributions, as well as lowering individual contributions to statewide and General Assembly candidates.

He also urged the Legislature to pass a revision that closes the Limited Liability Company loophole and prevents LLCs from contributing more than $5,000 annually.

New York City Mayor Bill de Blasio announced a special election date for public advocate to be held on February 26.

Tish James, the current public advocate, is vacating the seat after being elected state attorney general.

On November 28, 2018, a lawsuit had been filed against the Joint Commission on Public Ethics to stop the commission’s Comprehensive Lobbying Regulations from going into effect on January 1, 2019.

David Grandeau, a former lobbying enforcement official and one of three petitioners in the lawsuit, argued the commission lacks the authority to create regulations that expand and amend New York’s Lobbying Act.

On December 19, a settlement was reached between the two parties. As a result, the comprehensive regulations are defined as a “statement’’ for how the commission plans to administer and enforce state lobbying law.

The New York Joint Commission On Public Ethics (JCOPE) has launched the registration and related reportable business relationship filing section of the new lobbying reporting system.

Each Statement of Registration must be accompanied by a copy of an executed contract or Lobbying Agreement form (if a contract exists), or a signed, written lobbying authorization to lobby from the Client (if a contract does not exist).

The option to submit a Lobbying Agreement form is a new option for filers with an existing contract.

Additional information related to the new reporting system is available on the JCOPE website.