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A lawsuit was filed in federal court this week challenging Louisiana’s $100,000 limit on contributions to political action committees (PACs).

The plaintiff in the suit is an independent expenditure-only PAC called The Fund for Louisiana’s Future. It is arguing that, because it only makes expenditures independent of any candidate, the limit violates the First and Fourteenth Amendments.

According to The Advocate, the PAC was created to support Sen. David Vitter’s future bid for governor or re-election bid for Senate.

PACs and candidates behind in filing their scheduled reports with the Oklahoma Ethics Commission may be facing thousands of dollars in fines, according to NewsOK.com.

Executive Director Lee Slater will be focusing efforts this summer on clearing up the backlog of PACs and candidates not keeping up with reporting requirements. More than two dozen PACs have not filed their latest quarterly reports due April 30.

The commission can charge each committee or candidate $100 per day for each day it is late filing, with a total maximum penalty of $1,000. NewsOK.com reports the commission will be hiring a hearing officer before it starts to mail out its penalty assessments, anticipating candidates’ guaranteed right to protest.

Q. I am interested in making a political contribution in Puerto Rico. What are the current political contribution limits? Am I required to disclose my contribution?

A. In Puerto Rico, individuals and PACs may make contributions.  Direct corporate contributions are prohibited. Puerto Rico has recently raised the annual political contribution limits. In response to the Federal Election Commission raising the federal contributions limits in 2 U.S.C. §441a(a)(1)(A),  the Oficina del Contralor Electoral (OCE) issued Circulated Letter OCE-CC-2013-02. The circulated letter raises the individual and PAC contribution limits to $2,600 per candidate per year, with an aggregate contribution limit of $13,000.  In an election year, the limits are modified to $2,600 per candidate per election, and $13,000 in the aggregate per election. These contribution limits do not apply to independent expenditures.

There are no reporting requirements for individuals making contributions in Puerto Rico.  PACs, however, have a quarterly disclosure requirement for any quarter in which contributions were received or expenditures were made.  PACs established and registered in a jurisdiction other than Puerto Rico have separate reporting requirements under the campaign finance regulations issued by the OCE.

For specific guidance on making contributions in Puerto Rico, please contact Sarah Kovit.

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

Representative Kurt Wright announced his intention to introduce campaign finance legislation that will enhance disclosures in an election year. Wright and 10 other legislators are working on legislation that would require campaign finance reports to be filed monthly after January 15 in an election year, and increase filing to biweekly leading up to a primary or general election.

Currently, filings are due monthly after July 15.

The bill will also contain provisions related to donor disclosure, requiring PACs to disclose a top contributor if he or she provides more than half of all contributions in a six-month period, and super PACs to disclose their top three donors if their combined contributions account for more than half of contributions received.

Photo of Vermont State House by Jared C. Benedict on Wikipedia.

A federal judge has upheld Vermont’s contribution limits on political action committees. Vermont Right to Life Committee (VRLC) and its related political committee, Vermont Right to Life Committee – Fund for Independent Political Expenditures (FIPE), filed suit alleging that Vermont’s registration, reporting, and disclosure requirements for PACs are too broad and unconstitutional, and that FIPE should not be subject to the $2,000 limit on PAC contributions because it only makes independent expenditures.

The judge rejected FIPE’s claim that it should not be subject to the contribution limits on the basis that there is a “fluidity of funds” between FIPE and VRLC that provides no safeguard against unlimited contributions being used to fund candidate contributions.

Secretary of State Jim Condos applauded the ruling; however, the opinion makes clear that the decision to uphold the $2,000 contribution limit weighed heavily on the facts of the case, in particular the lack of separation between FIPE and VRLC. VRLC plans to appeal the ruling.

Legislators have introduced bills to remove limitations on the amount of money they can accept from PACs.  Senate Bill 3645 and companion House Bill 3281, remove the aggregate limitations on PAC donations to candidates.  The bills also remove the reporting requirements for large contributions made within 10 days of an election and remove an existing prohibition on insurance companies making campaign contributions.

Senate Speaker Pro Tempore Bo Watson, who introduced the senate bill, has stated the bill is a logical follow through to Senate Bill 1915 enacted last year that authorized direct corporate contributions to state candidates and treats corporations as if they were PACs for reporting purposes.

The law created new PAC reporting requirements. PACs must file quarterly reports on the 15th day of the month following the end of a calendar quarter. From July 1st of an election year until December 31st of that year, PACs must file monthly reports by the 15th day of the month following the reporting period. From October 1st of an election year until November 30th, reports must be submitted on the 15th and 30th day of each month. A final report covering transactions after the January 1st following the election must be filed 90 days after the election.

Because 2012 is an election year in Puerto Rico, the law makes provisions regarding contribution limits. A contribution of up to $2,500 may be given by a PAC to a candidate between January 1, 2012 and March 18, 2012. An additional contribution of up to $2,500 may be given to each candidate between March 19, 2012 and November 6, 2012. PACs may not give more than $12,500 in the aggregate per election in 2012.

Puerto Rico has also joined the growing list of jurisdictions with pay-to-play laws. Puerto Rico prohibits contributions while a corporation is in the process of obtaining a permit, franchise, or government contract. Once the process of obtaining the permit, franchise, or government contract is completed, a corporation may make a contribution from their PAC. At the municipal level, contributions to local candidates are prohibited if the corporation is seeking a permit, franchise, or contract with the local jurisdiction.

Federal:

How One Criminal Case Hit K Street

Hybrid PACs: Super PACs and Traditional PACs Can Merge

Lobbyists In On ‘Super’ Secrets

OMB Finalizes Details on White House Lobbying Reform Rules

From the States and Municipalities:

Alabama

Commission’s Opinions Further Define 2010 Ethics Law

Delaware

Colbert Takes Satirical Swipe at Abuse of Delaware Spending Disclosure Laws

Minnesota

Disclosure Rules Apply, Campaign Finance Board Says

New Jersey

N.J. Ethics Reform Efforts Bogged Down for Year

New Mexico

New Mexico Governor Signs Bill to Close Loopholes in State Contract Bidding

New York

NYC Mayor Cross-Examined at Ex-Operative’s Trial

Texas

Recall Case Likely to Extend Beyond El Paso

Utah

Lobbyists Want Keys to the Gym and Valet Parking at Capitol

Virginia

Trackers an Evolving but Undeniable Political Force

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.

Jim Sedor is editor of News You Can Use.