Latest Developments:
- The Oregon Legislature approved Senate Joint Resolution 18, which places a measure on the November 2020 ballot that would permit the state and local governments to enact laws or ordinances to limit campaign contributions, require disclosure of contributions and expenditures, and require disclosure in campaign advertisements.
- The Governor of California:
- Signed AB 1043, which permits spending campaign funds on cybersecurity measures for devices of officials, candidates, and campaign workers. The bill cites the Federal Election Commission’s recent Advisory Opinion 2018-15 in its findings and declarations regarding the need for campaign cybersecurity.
- Signed SB 84, which extends the date for the Secretary of State to develop its online reporting process for campaign statements and lobbying information, from December 31, 2019, to February 2021. Had it not been extended, the system would have been implemented during the 90-day reporting period for the March 2020 presidential primary.
- The Governor of Hawaii approved SB 144, which provides that penalties for failure to register and failure to file an expenditure report may be imposed by the State Ethics Commission for a negligent failure, rather than a willful failure. Violations are no longer a criminal offense, thus the threshold was lowered. In addition, the bill provides for a settlement process.
- Two States announced New Lobby Reporting Systems:
- The Federal Election Commission approved three advisory opinions this week. Advisory Opinion 2019-12 permits a company to offer cybersecurity services to federal candidates and political committees for no or a low cost on the same terms and conditions as offered to non-political clients. Advisory Opinion 2019-09 permits a nonconnected PAC to sell T shirts with the names and likenesses of candidates as long as it treats the proceeds as contributions and complies with applicable disclaimer provisions. In addition, Advisory Opinion 2019-08 allows a committee to distribute valueless digital blockchain tokens as an incentive to volunteers, because they are materially indistinguishable from other forms of campaign souvenirs.
Reminder:
The Practising Law Institute presents U.S. Political Activities by Multinational Corporations, with panelists Mike Columbo and Evann Whitelam, moderated by Jason Kaune, all of Nielsen Merksamer, on Tuesday, July 16, at 1:00 P.M. EDT. In light of recent scandals, the hour-long discussion will focus on compliance with U.S. political laws – including the Foreign Agents Registration Act, the Federal Election Campaign Act, and the Lobbying Disclosure Act, among others – as they relate to multinational corporations; a summary of notable investigations and enforcements; and real-world scenarios and best practices for compliance.
Register Here for U.S. Political Activities by Multinational Corporations
In Case You Missed It:
- Easing the Contribution Limits: The Board of Supervisors of Santa Cruz County, California, has approved a change to the county’s contribution limits, thus ending its distinction of having the lowest contribution limits in the Golden State. According to the Santa Cruz Sentinel, the limits were increased from $400 to $500 for individual’s contributions to county candidates. The $500 limit is consistent with many other local California jurisdictions. Additionally, the new limit will increase by $25 every two years, starting in 2022.
- Ending Contribution Time Restrictions: According to the Arkansas Democrat-Gazette, a federal judge has blocked a state law that prohibits contributions more than two years before an election. In Jones v. Jegley, the “blackout period” prevented Ms. Jones from contributing to the candidate of her choice in the 2022 election. A notice of appeal has been filed.
- Forming New Ethics: The Albuquerque Journal reports that the first five members of the New Mexico Ethics Commission were sworn in on July 1 by the Chief Justice of the state’s Supreme Court. The remaining two members will be chosen by those five, in a selection process slated for August. An executive director will be selected after all seven members are in place.
- Scranton Mayor Pleads in Pay-to-Play Scandal: The Associated Press reports that the Mayor of Scranton, PA, pleaded guilty in federal court to bribery, extortion, and conspiracy. According to the AP, the Mayor “collected tens of thousands of dollars in bribes by pressuring people who needed city permits or contracts. “
- Pay-to-Play Insurance: The San Diego Union-Tribune reports that, shortly after he was elected in 2018, California’s new State Insurance Commissioner began collecting campaign contributions from individuals associated with insurance companies that he regulates. The report indicates that the Insurance Commissioner accepted “more than $50,000 in donations in recent months from insurance company executives and their apparent spouses.” According to the Union-Tribune, the Commissioner announced that he would return the money, following the paper’s exposé.
- Show-Me the (Taxpayer’s) Money: Missouri taxpayers paid over a half million dollars in legal fees to attorneys representing two “powerful lobbying groups,” according to the Louis Post-Dispatch. The attorneys successfully sued in federal court to stop a ban on PAC-to-PAC contributions contained in a 2016 Missouri ballot measure. The measure was approved by 70% of the voters, but the federal court found that the ban violated free speech laws. Other parts of the measure took effect, including campaign contribution limits.
- No More Dark Money in Phoenix: AZCentral reports that a campaign finance measure passed by voters last November finally took effect after a review by the Governor’s office. Eight months after it passed, the law now requires that any contribution of more than $1,000 to influence an election in Phoenix must be disclosed.