Tag Archives: campaign finance

St. Petersburg Passes Anti-Super PAC Ordinance, Hoping to Set Up Constitutional Showdown

The City of St. Petersburg, Florida yesterday passed an ordinance designed to take the question of “Super PACs” to the Supreme Court for the first time.  The ordinance, which we discussed in detail earlier this year, imposes a $5,000 limit on contributions to groups that raise money for or make independent expenditures or electioneering communications … Continue Reading

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 sponsors … Continue Reading

MSRB Pay-to-Play Challenge Stymied by Sixth Circuit over Standing

Over the past few years, a few state political party committees have relentlessly sought to block or overturn pay-to-play laws overseen by the Securities and Exchange Commission (SEC). Yesterday, the Sixth Circuit delivered another defeat to an ongoing effort to challenge federal pay-to-play laws. Last year, we noted that the Municipal Securities Rulemaking Board (MSRB) … Continue Reading

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 $10,000 … Continue Reading

U.S. House Considering Major Change to Trade Association PAC Fundraising Rules

The U.S. House Committee on Appropriations is considering a major change to the way trade associations are allowed to raise money into their political action committees (PACs).  Currently, if a trade association wants to solicit money from its member companies’ employees, it must first get advance approval from the company, and each company can authorize … Continue Reading

California AG Becerra Hints at Crackdown on Nonprofit Political Activity

Nonprofits that are active in California politics, already facing one of the most complex regulatory environments in the country, now have another thing to worry about: the state’s Attorney General.  In remarks Wednesday, Attorney General Xavier Becerra announced his intent to pursue nonprofit organizations that he believes “abuse” their nonprofit status for political purposes.  With the … Continue Reading

The 2017 Presidential Inauguration: Ethics and Compliance Issues

With Election Day 2016 in the books, the political world turns to the transition of power and the January 20, 2017 Inauguration of President-elect Donald Trump and Vice President-elect Mike Pence. With the swearing in of the new President and Vice President will come the traditional balls, parties, and receptions. The inauguration and related events … Continue Reading

The Supreme Court Redraws the Lines for Corruption Prosecutions

The Ferrari carrying former Virginia Governor Bob McDonnell appears to have made a U-turn this week on its way to the federal penitentiary.  Covington released today a Client Alert on the Supreme Court’s decision in McDonnell v. United States, a decision which vacated Governor McDonnell’s conviction and redraws the lines for corruption prosecutions.   The Court held a public … Continue Reading

“When One Door Closes . . .”: McCain-Feingold Opens “Soft Money” Loophole In the States

A recent settlement between the Massachusetts Office of Campaign and Political Finance (OCPF) and Massachusetts Republican Party may highlight an emerging trend: state parties using federal preemption to avoid strict state campaign finance laws.  At issue was whether the Massachusetts Republican Party could use funds from its federal campaign account to pay for staff and … Continue Reading

California Regulation, Proposed Statute Add to State’s Reputation for Complex, Detailed Disclosure

California is already home to some of the most complicated and searching political regulations in the country, especially in its efforts to expose “dark money” and other undisclosed political spending.  A newly-amended lobbying regulation and proposed campaign finance law will enhance that reputation.  The practical effect of each is to invite deeper scrutiny of not … Continue Reading

California Penalizes Campaign, Committee for Coordination Violation

As Super PACs and campaigns continue to edge closer to the legal line between “independence” and “coordination,” it has become common to hear calls for the FEC to take a stricter role in enforcing the law. Yet as recently reported by BNA, the FEC has not found a single violation of its coordination rules in … Continue Reading

Highlights from Wagner; D.C. Circuit Upholds Contributions Restrictions But Limits Ruling

The Wagner case, decided today by the D.C. Circuit, is important because of its analysis of the constitutionality of federal campaign contribution restrictions and, by extension, of pay-to-play laws generally. Covington has been monitoring this case since the district court decision in 2012, to the argument before the D.C. Circuit in 2013, and the decision … Continue Reading

Christie Vetoes Controversial New Jersey Pay-to-Play Provision

Earlier this week, New Jersey Governor Chris Christie vetoed key aspects of a bill that would have imposed new restrictions on the ability of national and federal political party committees to raise money from Wall Street and financial executives.  The bill, as we have previously discussed, sought to apply the state’s notoriously stringent pay-to-play rules … Continue Reading

The SEC & Big Data

In our discussion of the Securities & Exchange Commission’s (SEC) actions over the past year, we described how the SEC is ramping up enforcement of its pay-to-play restrictions.  We also pointed out an acknowledgment by an agency enforcement official that the agency is “actively looking” for violations and that the agency does its own “surveillance.” What kind … Continue Reading

New Campaign Finance, Lobbying, and Ethics Laws Take Effect

The New Year brings with it new laws governing campaign finance, lobbying, and ethics. Below we highlight some of the major state and federal laws that took effect on or around January 1. This is not intended to be an exhaustive list, but highlights some of the most significant changes that are new for 2015.  … Continue Reading

New Arkansas Campaign Finance, Lobbying, and Ethics Laws Take Immediate Effect

Amid the thrill of victory and agony of defeat this Election Day, Arkansas voters approved a constitutional amendment that will have a major impact on those involved in the political and legislative process there.  While enacting legislation and regulations may bring some additional clarity to the issues, the amendment is effective immediately and brings the … Continue Reading

Florida Clarifies Registration Requirements for Federal and Out-of-state PACs

New guidance from the Florida Bureau of Election Records will be useful to federal PACs and other non-Florida political entities that want to participate in Florida politics but were wary of the state’s registration and reporting requirements.  Under the new guidance, available on page 34 of the Florida Political Committee Handbook: Out-of-state and federal entities … Continue Reading

In Chevron Case, FEC Brings Clarity to the Federal Contractor Ban and Super PACs

The rules on corporate contributions to Super PACs were made clearer today when the Federal Election Commission (FEC) released its finding that Chevron Corporation’s $2.5 million contribution in 2012 to the Congressional Leadership Fund (a Super PAC) had not violated the bar on government contractors making contributions in federal elections. Public Citizen and several environmental … Continue Reading

After McCutcheon, Are Limits on Party Committee and PAC Contributions Justifiable?

The Supreme Court’s latest major campaign finance decision, McCutcheon v. FEC, “does not involve” a challenge to current limits on contributions to political party committees and PACs, which the Court “previously upheld as serving the permissible objective of combatting corruption.”  But it nonetheless provides fodder for those who would challenge party and PAC limits. The … Continue Reading

Don’t Hold Your Breath for a Legislative “Fix” to McCutcheon

In his controlling opinion yesterday in McCutcheon v. FEC, Chief Justice John Roberts struck down the federal aggregate campaign contribution limits.  These limits capped the total amount one individual could give to candidates, party committees, and PACs in a two-year election cycle.  The purpose of the limits was to prevent donors from circumventing the per-candidate … Continue Reading

Connecticut Pay-to-Play Law Does Not Bar Giving to a State Party’s Federal Account

Connecticut’s campaign finance regulator, the State Elections Enforcement Commission (“SEEC”) recently released an important advisory opinion that made clear that a state contractor that is otherwise barred from giving to a state political party under Connecticut’s pay-to-play law can give to the party’s federal account, a point SEEC staff had previously addressed.  However, the state … Continue Reading
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