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
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 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
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 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
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
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
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
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
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
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
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
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
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
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’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
At the federal level, it is generally illegal for an outside group like a Super PAC or a 501(c)(4) organization to coordinate its independent expenditures with the candidate it supports. The same is true in many states. As we recently reported in our 2013 FEC Year in Review, however, the FEC did not act on … Continue Reading
California’s Fair Political Practices Commission (FPPC) is more aggressive than ever and is employing new tactics. The FPPC’s recently-released end-of-year report detailing enforcement activities in 2013 highlights some interesting statistics that should be on the radar of every company doing business in California. Prosecutions of both “serious campaign cases” and lobbying violations were both “at … Continue Reading
The Washington State Public Disclosure Commission raised campaign contribution limits last week. Effective January 5, 2014, corporations, PACs, and individuals will be able to donate $950 per election to legislative candidates and $1,900 per election to gubernatorial and other statewide candidates. A primary and general election are considered separate elections for contribution limit purposes. A … Continue Reading
After extensive legislative deliberation over the past year, last week the Council of the District of Columbia unanimously approved a campaign finance reform bill which aims to tighten up rules around LLC contributions and promote fundraising transparency. Notably, the D.C. Council had contemplated inserting pay-to-play restrictions in the campaign finance bill, but ultimately removed any … Continue Reading
On Thursday, the Federal Election Commission (FEC) was unable to agree on whether Yamaha Motor Corporation, U.S.A. could sponsor a Separate Segregated Fund (a corporate “SSF” or “PAC” in common parlance) that solicited contributions from the employees of its dealers and service centers. The request resulted in an unsurprising deadlock and a surprising discussion about … Continue Reading
Effective today, corporations can now make unlimited campaign contributions directly to candidates in Alabama state and local elections. The Alabama legislature passed this law to remove the $500 per election cap on corporate contributions in May, but, as we previously covered, there was some ambiguity regarding when the law would take effect. Other provisions of … Continue Reading
During the 2012 election cycle, we cautioned that campaign finance problems can haunt candidates long after the election is over. Case in point: As the New York Daily News reports, the New York City Campaign Finance Board recently voted to impose $72,402 in penalties for violations of 15 different campaign finance restrictions, including accepting contributions … Continue Reading
As we recently predicted the Supreme Court’s decision in United States v. Windsor striking down part of the Defense of Marriage Act is prompting the FEC to reconsider, and likely revise, its decision in an earlier Advisory Opinion, 2013-02 (“Winslow I”), that the definition of “spouse” under federal election law did not apply to same-sex … Continue Reading
