Politics

Rules for Advocacy Groups May Not Be Settled Until Spring 2010

Posted on November 09, 2009
The Federal Election Commission (FEC) announced on October 21 that it will not seek further review of a ruling by a three-judge federal appeals panel that struck down restrictions on fundraising and spending by non-profit advocacy groups. (EMILY?s List v...

D.C. Appeals Court Tosses Out FEC Restrictions on Non-Profits

Posted on October 13, 2009
A three-judge federal appeals panel on September 18 struck down FEC rules that limit fundraising and spending by non-profit advocacy organizations. The court in EMILY?s List v. FEC concluded that such groups have a constitutional right to raise unlimited funds in support of candidates for elected office, and to spend those funds on any independent, election-related activities, including political ads, get-out-the-vote efforts and voter registration drives...

Supreme Court Hears Arguments in Campaign Finance Case: Are Limits on Corporate Funding of Election Ads About to Fall?

Posted on September 15, 2009
The Supreme Court heard arguments last week in Citizens United v. FEC, which began as an unremarkable case about an obscure advocacy group and its movie about Hillary Clinton, and has mushroomed into one of the most important campaign finance cases in history...

SEC Proposes Pay-to-Play Rules for Pension Fund Industry

Posted on August 06, 2009
The SEC voted on July 22 to propose new rules restricting campaign contributions by investment advisors seeking contracts from public pension plans. The proposed rule is similar to draft Rule 206(4)-5 that the SEC considered in 1999, and is based on an existing rule ? MSRB Rule G-37 ? that applies to municipal securities dealers...

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Supreme Court Poised to Allow Corporate Funding of Campaign Ads

Posted on July 01, 2009
In a stunning move, the Supreme Court announced on Friday that it is reconsidering the constitutionality of laws that prohibit corporations and unions from funding ads that influence elections. A ruling that such laws are unconstitutional would invalidate a decades-old spending restriction that applies in federal elections and in many states, and would unleash a flood of spending in the 2010 cycle and beyond...

States Launch Review of Disqualification Standards for Elected Judges

Posted on June 19, 2009
Last week, the Supreme Court ruled that elected judges should not hear cases when the support they received from campaign backers creates an appearance of bias. In the wake of this ruling, a number of states have announced plans to review their rules on judicial disqualification...

New Role For Election Lawyers in Litigation: Supreme Court Disqualifies Judge Based On Campaign Support

Posted on June 12, 2009
The Supreme Court ruled on June 8 that an elected judge was constitutionally barred from taking part in a case where one of the parties spent a large sum to get the judge elected. (Caperton v. A.T. Massey Coal Co.). The ruling will bring new scrutiny to cases heard by elected judges and may spawn a wave of efforts to keep elected judges from hearing cases tied to their supporters...

Webinar on Pay-to-Play Updates: Campaign Contributions and Other Political Activities Pose Risks for State and Local Contractors

Posted on June 11, 2009
In the last few years, there has been a proliferation of state and local laws barring or severely limiting campaign contributions by companies doing business with government agencies. Just one prohibited campaign contribution by a contractor, its officers or executives, or other related individuals can lead to the immediate severing of existing contracts, disqualification of bids, fines, and even criminal penalties...

White House Expands Restrictions On Stimulus Lobbying

Posted on June 02, 2009
Late last Friday, through the unusual vehicle of a blog entry, the White House ethics counsel announced that restrictions on oral communications about Recovery Act projects now apply not just to federally-registered lobbyists, but also to unregistered lobbyists, "as well as anyone else exerting influence on the process...

Executive Branch Lobbying Restrictions: A Chance For Common Ground?

Posted on May 29, 2009
The next chapter in the dispute over the President's March 20 memorandum restricting lobbyists' communications with executive branch officials is likely to begin soon when OMB Director Orszag reports to the President after a 60-day study period. The memorandum has received much criticism, and threats of legal action, from both the private sector and public-interest lobbying communities...

3-3 Votes On The FEC: Why So Frequent? What Do They Mean?

Posted on May 21, 2009
The Federal Election Commission has become the place where complaints go to die. In 2006 and 2007, FEC fines were skyrocketing, with several prominent 527 groups paying six-figure penalties and Freddie Mac paying a whopping $3.8 million for deploying corporate resources in support of fundraising activity...

First Lobbyist Bundling Reports DueMay 20

Posted on May 15, 2009
The rubber is about to hit the road for the new FEC lobbyist bundling rules. Leadership PACs, presidential campaigns, and political party committees, which report monthly, have until May 20 to file the new Form 3L. (Congressional committees will not have to report bundled contributions until quarterly reports are due in July...

FEC Stalemate Continues; New Commissioner Nominated

Posted on May 08, 2009
The Federal Election Commission remains deeply divided ? a situation that is unlikely to change until new Commissioners are appointed and confirmed. That may happen soon, as President Obama announced last week an "intent to nominate" John J. Sullivan as FEC Commissioner...

Political GPS: FEC DROPS CASE AGAINST 527 GROUP ? WHAT ARE THE LESSONS?

Posted on April 24, 2009
The FEC this week quietly dismissed an October 2006 complaint charging that the Lantern Project, a 527 organization, had failed to register as a political committee and raised funds outside of the limits and prohibitions of federal law. An organization must register with the FEC and comply with federal source restrictions and contribution limits if it raises or spends over $1,000 to influence a federal election...

OMB Clarifies Presidential Gag Order on Discussions with Lobbyists

Posted on April 16, 2009
The Director of OMB last week issued a memo to heads of executive departments, clarifying President Obama?s instruction that agencies restrict oral communications with registered lobbyists. The President?s memo only permits in-person or phone conversations between lobbyists and executive branch officials about Recovery Act spending that are limited to "policy issues" that do not "touch upon" particular projects...

Political GPS: OVER 1000 COMMITTEES MISS FEC BUNDLING RULES DEADLINE - DOES REPORTING REALLY MATTER?

Posted on April 08, 2009
Over 1,080 federal political committees known to be controlled by lobbyists failed to file an amended statement of organization by March 29, according to CQ Today Online (subscription required). New FEC rules require these filings to help candidates and others track ?bundled? contributions received from lobbyist-controlled PACs...

Political GPS: LOBBYIST TRANSPARENCY OR GAG ORDER: OUR THOUGHTS

Posted on March 27, 2009
Late last week, President Obama took another step that attempts to marginalize the role of lobbyists in government decision-making. In a memorandum to agency heads, the President banned lobbyists from participating in meetings and telephone calls with executive branch officials about projects funded under the American Recovery and Reinvestment Act (Recovery Act)...

Political GPS: INITIAL FILING DATE APPROACHES UNDER NEW FEC BUNDLING RULES

Posted on March 16, 2009
Any federal PAC that is established or controlled by a company or other organization registered under the Lobbying Disclosure Act (LDA), or by an individual lobbyist, must identify itself as such in an amended registration, filed with the FEC by March 29...

Illinois Elections Chair Admits Problems In Rolling Out Pay-to-Play Law

Posted on March 05, 2009
In public testimony last week, the Chairman of the Illinois State Board of Elections acknowledged that his agency was ill-equipped to implement the state?s new "pay-to-play" law. "We had problems," Chairman Albert Porter admitted, saying the agency had "insufficient time" before the initial February 2 registration deadline to address extensive legal, practical and technical challenges...

Political GPS: What Are The FEC?s Priorities?

Posted on February 25, 2009
If you?re wondering about the FEC?s rulemaking priorities, a proposal containing a full year's worth of projects is posted on the Commission?s website. The document indicates that a public vote by the full Commission is scheduled in February.The date of this document? February 16, 2007...

Political GPS: ARE ADMINISTRATIVE LAW JUDGES THE ANSWER FOR THE FEDERAL ELECTION COMMISSION?

Posted on February 19, 2009
Seven advocacy groups, including some longtime FEC critics, have renewed their call for Congress to replace the FEC with a new three-member agency that would resolve enforcement matters through administrative law judges, or ALJs. For years, these critics say, FEC enforcement has been a story of too little (low penalties), too late (cases resolved long after elections are over)...

Political GPS: New York City Pay-to-Play Law Gains Court Approval

Posted on February 12, 2009
A federal judge last Friday upheld New York City?s ?pay-to-play? law that sets lower contribution limits for government contractors and lobbyists. This follows recent court decisions in New Jersey and Connecticut, rejecting challenges to similar laws...

Political GPS: FEC?S LOBBYIST CONTRIBUTION RULES -- THEY?RE A BUNDLE!

Posted on February 05, 2009
The FEC on Tuesday released a 70-page explanation for its new bundling rules, which implement a key provision of the 2007 lobbying law. The FEC document attempts to simplify compliance with the reporting requirements of the law and in some areas limit the reach of the law...

A New Era Of Cooperation in Washington? Federal Election Commission Didn?t Get The Memo

Posted on January 28, 2009
A deepening paralysis at the Federal Election Commission may prompt President Obama to replace half the members of the election panel soon after their terms expire late this Spring, or join forces with his former rival, Senator John McCain, to scrap the agency and start over...

Political GPS: Want Contracts Under The Federal Stimulus Plan? Better Prepare Now For State and Local Pay-to-Play Laws

Posted on January 21, 2009
Federal stimulus money will start flowing soon, and a lot of it will be distributed through state and local governments. Any company seeking a piece of this action ? IT, energy, construction firms and more ? should prepare now for a confusing array of ?pay-to-play" laws...

Political GPS: Federal Prosecutors Look to Expand Role Over Election Activity

Posted on January 14, 2009
The FEC recently requested comments from the public on its enforcement procedures and policies ? an exercise of interest to campaign finance lawyers, but otherwise little noticed by the public. One comment was received from an unexpected source ? the U...

Political GPS: New Life for 527s? FEC Deadlocks Over Chamber of Commerce Spin-Off

Posted on January 06, 2009
The FEC?s decision to reject a settlement negotiated between its staff and a 527 group funded by the U.S. Chamber of Commerce has triggered accusations that the Commission is backpedaling on its approach to these independent groups and is generally unwilling to enforce campaign finance laws...

Happy Holidays and a Happy New Year to all of our readers!

Posted on December 16, 2008
Welcome to our last Political GPS for 2008. It?s been a hectic year in the world of political law. We have seen an historic (and seemingly endless) presidential election, and we?ve all had to adjust to significant changes in lobbying and ethics laws on the federal and state levels...

?TWAS TWO DAYS BEFORE CHRISTMAS: A YULETIDE PREDICTION ABOUT FEC ENFORCEMENT (IN VERSE, OF COURSE)

Posted on December 16, 2008
The FEC has announced action on only 38 enforcement cases this year, compared to an average of 100 in each of the previous years, according to BNA Money & Politics.No doubt Commissioners have labored to work through a backlog built up over the first six months of 2008, a period during which the Senate was deadlocked over new appointments and the FEC lacked a quorum...

Political GPS: FEC Audit Exposes Major Violations By Trade Association PAC

Posted on December 02, 2008
When did your PAC last undergo a legal compliance audit? As a major trade association PAC learned last week, it's far better to audit your own PAC than reach a point where the Federal Election Commission does it for you.The FEC's audit of the American Resort Owners Coalition PAC exposed a host of compliance lapses: contributions from prohibited sources (corporations and foreign nationals), solicitations that lacked required disclosure statements, and misreporting on publicly filed reports...

Kahl & Norton Quoted in NY Times on Hillary's Campaign Debt

Posted on November 19, 2008
From the New York Times: Vendors still owed money from Senator Hillary Rodham Clinton's presidential campaign could be out of luck for years should she become secretary of state. Mrs. Clinton still had about $7.9 million in outstanding bills from her presidential campaign at the end of September, according to Federal Election Commission records...