Companies doing business with state and local governments or operating in regulated industries are subject to a dizzying array of “pay-to-play” rules. These rules effectively prohibit company executives and employees (and in some cases, their family members) from making certain personal political contributions. Even inadvertent violations can be dangerous: a single political contribution can, for
State Law
Colorado Enacts Replacement Campaign Finance Enforcement System
Just one week ago, a federal court in Colorado held that the state’s system for enforcing its campaign finance laws was unconstitutional. Moving quickly, the Colorado Secretary of state has enacted temporary enforcement rules, effective immediately.
Under the new rules, any person may file a complaint, just like under the old system. However, the…
Colorado Campaign Finance Enforcement System Found Unconstitutional
In a case with interesting ramifications, a federal court this week struck down major parts of Colorado’s campaign finance enforcement system as unconstitutional.
The system at issue, which was created through a ballot initiative, generally allowed any person who believed there had been a violation of the state’s campaign finance laws to file a written…
Politically Active Nonprofits Face New Donor Disclosure Law in Washington
Yesterday, Washington State Governor Jay Inslee signed into law the DISCLOSE Act, a law that imposes new donor disclosure requirements on politically active nonprofits.
Under the new law, a nonprofit entity—including, but not limited to a charity, educational institution, advocacy group or trade association—may be required to register with the state as an “incidental…
Fight Against Sexual Misconduct Bringing Regulations, Protections for Lobbyists
As sexual abuse, assault, harassment, and other misconduct have dominated national headlines, state capitols and lobbyists have not escaped scrutiny. Amidst a spate of allegations and member resignations, some state legislatures and ethics commissions are taking action. While a variety of measures are being considered, including tightening gift rules, it is apparent that lobbyists and…
California Gov. Brown Signs California DISCLOSE Act into Law
On Saturday, California Gov. Jerry Brown signed the California DISCLOSE Act, AB249, into law. We posted a detailed analysis of the law when it passed the legislature, but the key points bear repeating as it will be of interest to anyone who gives or spends money in California elections.
The law requires that some…
The Top Three Political Law Risks for Hedge Funds, Private Equity Funds, and Investment Firms
Perhaps no industry faces more scrutiny and regulation of its political activities than the financial services industry. Even though these rules are often not intuitive, failure to comply with them can result in big penalties, loss of business, and debilitating reputational consequences. In this advisory, we describe three sometimes overlooked political law related risks…
California Legislature Passes “California DISCLOSE Act,” a Complex but Clarifying Update to the State’s Political Advertising Disclosure Rules
Over the weekend, the California legislature passed AB249, the California DISCLOSE Act, a controversial set of campaign finance disclosure rules that have been years in the making. The law now awaits Gov. Jerry Brown’s approval. The law’s proponents have argued that it is necessary in order to provide voters with complete information about the…
Avoiding State and Local Lobbying Compliance Violations
Corporate legal and compliance departments are usually well aware of the laws regulating lobbying the federal government. Recent news reports, however, indicate that companies have more trouble with state and local lobbying laws. A few features of state and local lobbying make it a tricky blind spot. This increases the risk of failing to properly…
Kentucky Raises Contribution Limits in July, Adjusts Reporting
Starting this month, nearly all of Kentucky’s campaign contribution limits increase, excepting contributions that remain either unlimited in amount or prohibited.
Perhaps the most substantial change is the establishment of building fund accounts for political party executive committees, which may now accept unlimited funds from corporations. Also of note is the elimination of an aggregate…