The Fair Political Practices Commission (FPPC) voted to require more transparency and disclosure of those who use limited liability companies (LLC’s) to make political contributions.

Aditionally, they would require campaigns to list the name of the actual person who directed the LLC political spending.

The first new regulation requires LLC’s involved in raising and spending money for political activity to name the person making the decisions.

The second new regulation requires campaigns receiving donations from LLC’s to also list the name of the person responsible for the political activity.

A 2019 FPPC Enforcement Division examination of LLC’s found it was relatively easy to find information about the type of business, its address and an agent for service of process.

However, it was extremely difficult to find the identities of the people behind the LLC’s owners or the true source of the political expenditures.

Gov. David Ige signed House Bill 165 on April 16, adding a new registration and reporting requirement for noncandidate committees in an election period.

Under the bill, a noncandidate committee that does not intend to receive contributions or make expenditures in aggregate of more than $1,000 in an election period must notify the commission of its intent in the committee’s organizational report.

Notification must be made by the fifth calendar day before the due date of the preliminary primary report.

The bill became effective April 16 upon approval by the governor.

The U.S. Supreme Court has stayed a Montana Supreme Court decision upholding the state’s law prohibiting independent political expenditures, related to a candidate, by a corporation.

In December of last year, the Montana Supreme Court found Citizens United v. FEC did not compel invalidating the state’s 1912 Corrupt Practices Act, concluding the state, because of its history and the history of the Act, has a compelling interest to impose statutory restrictions. The Montana Court emphasized the Citizens United decision allows restrictions to be upheld if the government demonstrates a sufficiently strong interest.

The U.S. Supreme Court’s ruling stays the state Court’s ruling until either a formal appeal to the US Supreme Court is denied, or, if an appeal is accepted, the US Supreme Court mandates the termination of the stay.

In the one page order by the US Supreme Court, Associate Justice Ruth Bader Ginsburg wrote, “Montana’s experience, and experience elsewhere since this Court’s decision in [Citizens United v. FEC], make it exceedingly difficult to maintain that independent expenditures by corporations ‘do not give rise to corruption or the appearance of corruption.’ A petition for certiorari will give the Court an opportunity to consider whether, in light of the huge sums currently deployed to buy candidates’ allegiance, Citizens United should continue to hold sway.”

Associate Justice Steven G. Breyer joined in Justice Ginsburg’s statement.

Photo of the United States Supreme Court building frieze by UpstateNYer on Wikipedia.

The Sunset Commission, a legislative body created by the Texas Legislature to identify and eliminate waste, duplication, and inefficiency in government agencies, will seek public input during its scheduled review of the Texas Ethics Commission.

During the evaluation of the Ethics Commission’s mission and performance, submitted comments and suggestions will be accepted until the suggested date of November 21. The Sunset Commission then anticipates it will issue a report in March 2012 followed by a public hearing with testimony in April.

Based on the public input and the report, any recommendations to the legislature will be submitted at the start of its next session in January 2013.

Some of the duties the Texas Ethics Commission administers and enforces are the election code concerning political contributions, expenditures and political advertising, and lobbying registration, reports and activities.

The announcement of the review can be found here.

Photo of the Texas State Capitol by LoneStarMike on Wikipedia.

U.S. Representative Anna G. Eshoo has sent a letter to President Obama in support of a proposed executive order requiring federal contractors to disclose their political expenditures. The letter was signed by more than sixty members of the House.

In part the letter reads, “[D]isclosure will not politicize the procurement process–it will improve it. Political expenditures are already well-known to those that make them and to the officials who benefit. With disclosure, the public will have access to this information as well, allowing them to judge whether contracts were awarded based on merit.”

The proposed executive order has received both support and opposition since its leak in the spring, and even sparked a house committee hearing in May.

For previous articles on Lobby Comply by George Ticoras on this topic, you can read posts from June 1, May 20, May 12, and May 10.