With Election Day fast approaching, corporations face increasing pressure from both internal and external forces to make legal decisions about political activities. This can be a fraught area of law, with little understood, highly technical regulatory issues that vary significantly across jurisdictions. Corporate counsel should be mindful of common—and sometimes complicated—political law traps. In this
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California Passes New Pay-to-Play Regulations for Contributions by Government Contractors and Others
California recently passed a series of new regulations affecting its “pay-to-play” laws that limit political contributions by state and local government contractors and others involved in proceedings on contracts, licenses, permits, and other “entitlements for use” in the state. These regulations implement changes to the law that took effect this year, which include applying the…
FEC Commissioners Issue New Guidance on Donor Disclosure for Groups Paying for Political Advertisements
Trade associations, 501(c)(4) social welfare organizations, other outside groups that pay for political advertisements, and their donors now have more answers to long-running questions regarding when donations to these groups are publicly reportable. After postponing consideration of the issue during its previous meeting, the Federal Election Commission (“FEC”) approved Wednesday an interim final rule on…
New California Rules Target Amplification of Online Advertising
In the digital age, it has become common to accuse opponents of propping up their online presence through paying influencers, buying followers or likes, or of being supported by bots. A California law new this year is looking to shed light on at least some of that activity.
The California Fair Political Practices Commission recently…
Covington Releases 400-Page, 50-State Survey of Pay-to-Play Rules (2022 Edition)
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…
Understanding H.R. 1 (Part 1): Corporate & Trade Association Campaign Activity
With a growing chorus of support across the progressive landscape, the For the People Act of 2021 has emerged as a key legislative priority for congressional Democrats in the 117th Congress. Envisioned as a “transformational anti-corruption and clean elections reform package,” the bill would enact sweeping changes to federal election laws along with important changes…
Understanding H.R. 1 (Part 1): Corporate & Trade Association Campaign Activity
With a growing chorus of support across the progressive landscape, the For the People Act of 2021 has emerged as a key legislative priority for congressional Democrats in the 117th Congress. Envisioned as a “transformational anti-corruption and clean elections reform package,” the bill would enact sweeping changes to federal election laws along with important changes…
New Information Reporting on Beneficial Owners Included in 2021 NDAA
On Friday, January 1, 2021, the Senate voted to override President Trump’s veto of the 2021 National Defense Authorization Act (“2021 NDAA”) by a vote of 81 -13. The Senate’s override follows the House of Representatives’ override on December 28, 2020, and the 2021 NDAA is now law.
Included in Title LXIV of the 2021…
House COVID 3.0 Legislation Would Ban Federal Lobbying and Impose Permanent Corporate Political Spending Disclosure Requirements for Aid Recipients
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…
Interacting with the Government During the Pandemic: Compliance Blind Spots for Corporations and Executives
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…