Even corporations with careful political law compliance practices can be caught off guard when they learn that an employee is running for public office. The corporation may have a good understanding of what the corporation’s obligations and restrictions are in the political arena, but not fully know how to handle the compliance issues stemming from … Continue Reading
The consequences of the COVID-19 pandemic are reverberating in every sector of the global economy, from life sciences to transportation, retail to manufacturing, financial services to sports and entertainment. As federal, state, and local governments attempt to blunt the pandemic’s public health and economic effects, many companies are frantically working with government to seek the … Continue Reading
The countless lobbyists urging Congress to include relief for their clients in the third coronavirus legislative package (“COVID 3.0”) currently pending in Congress may soon be unemployed, at least if the House version becomes law. The Take Responsibility for Workers and Families Act (H.R. 6379), proposed by Democrats in the House of Representatives on Monday … Continue Reading
Last year, we blogged about a new and highly restrictive disclosure law in New Jersey that took aim at so-called “dark money” spending by nonprofit and political organizations. In response to a series of lawsuits, a federal court has issued an order permanently prohibiting the state from enforcing the law against “independent expenditure committees” as … Continue Reading
So-called “dark money” — political contributions and spending by groups that do not have to disclose their donors — continues to draw the attention of state legislators, with Colorado and New Jersey recently adopting laws that attempt to force some donor disclosure from the groups. They join other states, including Washington and California, that have … Continue Reading
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 example, … Continue Reading
A new corporate political disclosure trend is coming. For years, those advocating increased corporate political disclosure have looked for ways to force companies to publicly reveal the names and amounts of corporate contributions to so-called “dark money” 501(c)(4) social welfare nonprofits and 501(c)(6) trade associations. To date, these initiatives have had, at best, limited success. But this … Continue Reading
While the din over a possible government shutdown dominated the headlines, political law played a supporting role in the recently enacted Consolidated Appropriations Act (Pub. L. No. 115-141). The content and omissions of the so-called “Omnibus” spending bill will be of interest to political actors in all sectors, but particularly those operating nonprofit entities engaged … Continue Reading
For years, the Center for Political Accountability’s annual CPA-Zicklin Index of corporate political practices has touted marked year-over-year increases in corporate political disclosure practices. Look at the subtitles for its recent reports: How Leading Companies are Strengthening Their Political Spending Practices (2013), How Leading Companies are Making Political Disclosure a Mainstream Practice (2014 and 2015), … Continue Reading
A report published today criticizes companies that refuse to disclose information about their political spending on their websites. The non-profit Center for Political Accountability and the Zicklin School at Wharton annually rank all companies in the S&P 500 on their political disclosure practices, based on a 70-point metric. The more information companies disclose on their … Continue Reading
A major spending bill posted late last night by Congressional leaders contains provisions shooting down two key initiatives of the campaign finance reform community. Stymied by a Federal Election Commission that has increasingly struggled to find consensus, campaign finance activists in recent years have turned their attention to other federal regulators, pressing those regulators to … Continue Reading
A report published today by the Center for Political Accountability will result in more pressure on public companies to voluntarily disclose information about their political spending. Each year, CPA in collaboration with the Zicklin Center at the University of Pennsylvania issues a detailed report “scoring” companies on their corporate political disclosure practices according to a … Continue Reading
Covington today released a client advisory providing best practices to assist in-house counsel of publicly-traded companies in responding to corporate political disclosure initiatives. These initiatives aim to force companies to post to their websites more information regarding corporate political activities, such as details regarding corporate contributions to trade associations and 501(c)(4) social welfare organizations. Despite … 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
As we predicted in January, the Virginia General Assembly has passed an ethics reform law and sent it to Governor Terry McAuliffe who can sign it into law, veto it, or propose amendments and return it to the General Assembly for further action. If signed into law, it will supplement the executive order limiting gifts … Continue Reading
A coalition of 60 investors, led by the AFSCME Employees Pension Plan and Walden Asset Management, recently announced that they have submitted shareholder proposals seeking additional disclosures regarding political spending and lobbying activities. This announcement reflects a continuing desire among these groups to obtain additional disclosures from public companies regarding lobbying and political spending, and … Continue Reading
This year has not been a great one for activists seeking to force corporations to increase disclosure of their political activities. According to the Manhattan Institute’s Center for Legal Policy, average shareholder support for proposals related to political spending or lobbying declined again this year, from 22 percent to 20 percent for lobbying proposals and … 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
Twenty House Democrats yesterday introduced proposed legislation that, if enacted in its current form, would amend the Federal Election Campaign Act of 1971 to: Require corporations and labor unions which “submit[] regular, periodic reports” to their shareholders and members to include certain detailed information concerning their political spending. That information must also be reported to the … Continue Reading
Yesterday, the Wisconsin Assembly passed a bill that would modify Wisconsin’s ban on corporate expenditures and double the state’s political contribution limits. In response to Citizens United, the bill lifts Wisconsin’s blanket prohibition on corporate expenditures. If passed by the Senate and signed into law, the bill would permit corporate independent expenditures and corporate contributions … Continue Reading
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 not only direct contributions, but … Continue Reading
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 to mean corporate contributions to … Continue Reading
A hot topic we’ve been tracking closely this year concerns the regulatory and legal battles over corporate political activity disclosure. This past week has been notable in two respects. As we’ve previously reported here, in December 2012 the Securities and Exchange Commission (“SEC”) identified potential rulemakings that it might undertake in 2013. Among the items … Continue Reading
