May 2013

Earlier today a three-judge panel of the U.S. Court of Appeals for the D.C. Circuit issued its opinion in Wagner v. FEC, sending the legal challenge brought by three federal contractors back to the start.

The contractors had sued the Federal Election Commission back in October 2011, arguing that…
Continue Reading D.C. Circuit Vacates Federal Contractor Ban Decision on Way to En Banc Review

Earlier this week, activist investors attempted to push through a shareholder resolution barring Chevron from using corporate funds for political activities.  The resolution called for the board of directors to “adopt a policy to refrain from using corporate funds to influence any political election.”  If passed, it would have prohibited…
Continue Reading Chevron Shareholder Resolution Attempting to Bar Corporate Political Activity Resoundingly Defeated

With the New Jersey gubernatorial primary election fast approaching, we have been tracking a legal challenge to the State’s treatment of contributions to Super PACs.  Back in March, the Election Law Enforcement Commission issued an advisory opinion to the Fund for Jobs and Growth, explaining that the group would need…
Continue Reading New Jersey to Allow Unrestricted Super PAC Contributions

New changes to Alabama law will allow corporations, like individuals, to make unlimited campaign contributions in Alabama state and local elections.  Last Friday, Governor Robert Bentley signed the law which removes the $500 per election cap on corporate contributions.  (The Alabama Attorney General’s Office interpreted the $500 per election cap…
Continue Reading New Alabama Law Allows Unlimited Corporate Campaign Contributions

All eyes are on the IRS and its regulation of 501(c)(4) organizations these days, with the agency’s mishandling of exemption applications, the release of the Treasury Inspector General’s report, and the lengthy hearings held by the House Ways and Means Committee, the Senate Finance Committee, and the House Oversight…
Continue Reading Group Sues Treasury and IRS to Amend 501(c)(4) Regulations

On Thursday,  the U.S. Court of Appeals for the D.C. Circuit wrapped up its 2012–2013 Term by hearing argument in Wagner v. FEC, a case that challenges the Federal Election Campaign Act provision prohibiting federal contractors from making political contributions in connection with federal elections.  The court typically issues…
Continue Reading Challenge to Federal Contractor Contribution Ban Awaits D.C. Circuit Decision

Late yesterday afternoon, the Treasury Inspector General for Tax Administration released its eagerly awaited report on its investigation into the IRS’s use of inappropriate criteria for screening tax-exempt applications (“IG Report”). The Inspector General initiated its investigation after members of Congress raised concerns during the 2012 election cycle that the…
Continue Reading Treasury Inspector General to IRS: Yes, That Was Wrong

Despite seemingly widespread agreement between and among Vermont state legislators and Governor Shumlin that contributions to Vermont Super PACs should be capped in principle, it now appears unlikely that Senate Bill 82 will make it to the Governor’s desk in 2013.  The two chambers of the state legislature were unable …
Continue Reading Vermont Super PAC Contribution Limit Bill Stalls

Covington’s cross-disciplinary team of political lawyers and securities lawyers that has been advising clients on STOCK Act compliance and enforcement issues for more than a year today issued a new client advisory, which is available here.  The advisory outlines examples of steps that companies can take to address STOCK…
Continue Reading Covington Issues Client Advisory Regarding STOCK Act and Political Intelligence Gathering