Latest Developments:
- The Internal Revenue Service published a new proposed regulation that would, according to an accompanying news release, “incorporate relief from requirements to report contributor names and addresses on annual returns filed by certain tax-exempt organizations, previously provided in Revenue Procedure 2018-38. A recent court decision (Bullock v. IRS) held that the Treasury Department and the IRS should have followed notice and comment procedures in 2018 when announcing this relief with respect to providing contributor names and addresses, and these regulations provide the opportunity for notice and comment on that relief as well as on other proposed updates to existing regulations.” The regulation will mean that nonprofit organizations that engage in political activity do not report the names and address of donors of $5,000 or more on their annual information returns to the IRS.
- The Ninth Circuit Court of Appeals ruled that Montana’s prohibition against robocalls violated First Amendment protections. In Victory Processing v. Fox, the court found that Montana’s statute regulating robocalls by restricting political speech was not narrowly tailored to address compelling governmental interests.
- The Portland, Oregon City Auditor announced that certain campaign finance provisions adopted by the voters at the November 2018 election have been validated by the courts and take effect this month. Among other provisions, “(E)ntities making more than $750 in independent expenditures to support or oppose city candidates now must register,” according to the Portland Tribune.
- The New North Dakota Ethics Commission met for the first time this week. The Bismarck Tribune reports that the session was mostly organizational and included a discussion of the optimal qualities the Commission desires in staff to be hired.
- The New York Joint Commission on Public Ethics, at its September meeting, announced that it continues to enhance its online lobby application. A public search query function is up and running and, in the very near future, the app will add the ability to complete online terminations and extensions, as well as file semi-annual report.
- The Commission also turned down a request for exemption from rules requiring disclosure of donors from Smart Approaches to Marijuana – New York; the Albany Times-Union notes that previous requests for exemption that were denied by the Commission were subsequently overturned by a judicial hearing officer.
Reminder:
The American Conference Institute presents the National Forum on the Foreign Agents Registrations Act on September 25, 2019 at the Washington Hilton in Washington, D.C. Join Jason Kaune of Nielsen Merksamer, who is participating on a panel about “FARA Prosecutions in Practice: How Practitioners are Approaching the Toughest, Most Critical Decisions in the Wake of Recent, High Profile Cases.” Use Code S10-655-655D20.S and receive a 10% discount. To sign up, use the following link: National Forum on FARA.
In Case You Missed It:
- Everything is Green in Fall River, MA: The FBI charged the Mayor of Fall River, Massachusetts with extortion, alleging that the Mayor sought cash and sometimes product from marijuana vendors in the city, according to Connecticut Public Radio. In a pay-to-play scheme, the Mayor issued city letters, required by prospective marijuana vendors for licensure, in exchange for about $600,000 in cash, loan forgiveness, and campaign contributions, as described by MassLive. The wife of one marijuana vendor was fined for reimbursing others for making contributions to the Mayor. He is also accused of extorting a portion of his Chief of Staff’s salary and shaking down a businessman for a “Batman” Rolex watch, per another MassLive report. The next Mayoral election will be held on September 17.
- Should Lobbyist Regulation be Relevant?: The Montana Commissioner of Political Practices notes that Montana statutes regulating lobbyist activity might not be up to date. “You will find the word ‘telegraph’ in the current code as far as what lobbyists should be reporting – telephone and telegraph expenses. You won’t find the word ‘internet’ in there,” as the Bozeman Daily Chronicle quotes the Commissioner. According to the article, his point is that “lawmakers should consider updating state lobbying rules to bring them ‘into the 21st century.’” The Commissioner’s suggestions include electronic filing and regulating grassroots lobbying.
- ACLU All in on Dark Money: The American Civil Liberties Union filed suit “seeking to overturn a measure that would require political action organizations that accept so-called ‘dark money’ in New Jersey to disclose their donors,” according to NJ.com. “‘This law discourages people from donating to non-profit organizations that advocate for causes that they believe make people’s lives better,’ said ACLU-NJ Legal Director Jeanne LoCicero.”
Even Pay-to-Play is Bigger in Texas: A Texas State Senator running for the U.S. Senate has disclosed in federal filings that he has substantial income from government contracts with seven Texas cities and districts according to the Texas Tribune. Disclosures for candidates for federal office are much greater than disclosures required of state officeholders. “Voters were never able to get those kinds of basic details from the disclosures the longtime senator – or any other Texas lawmaker – has had to file under lax state ethics laws,” according to the article.