Nielsen Merksamer, a leader in national political law compliance, hosts briefings, workshops and communications to share best practices and recent developments in campaign finance, lobby disclosure and government ethics laws across the nation. For the latest from our research team, read on…
Latest Developments:
- The Governor of Wyoming signed Senate File 18 (Chapter 1, 2019 Statutes) which, among other things, increases the frequency of campaign reporting for PACs and candidates, and requires reporting of independent expenditures and electioneering communications. The measure takes effect on July 1, 2019.
- The United States Supreme Court turned down a petition to hear an appeal of Montanans for Community Development v. Mangan. That case challenged Montana’s 2015 Disclose Act and specifically the requirement that PACs file reports for activity that exceeds $250 in a calendar year. The Ninth Circuit’s unpublished opinion upholding that law prevails.
- The Director of the U.S. Office of Government Ethics (belatedly) issued guidance on what federal employees can and cannot do when furloughed during a government shutdown. The guidance is a reminder that any gift from a donor who is a “prohibited source” will create problems, as will employment of a furloughed federal employee for whom the employment may be a conflict.
- In Case You Missed It:
- New Board orders New Election: The recently reconstituted North Carolina State Elections Board ordered a new election in the case of a congressional race in which the purported victor was accused of orchestrating voter fraud. The New York Times reports that the apparent winner of the election had financed an illegal scheme to collect absentee ballots. A new election has not yet been scheduled.
- Revolving Door Opened at the White House: According to ProPublica, 33 former Trump officials are engaged in some form of lobbying, including 18 who have actually registered as lobbyists. The activity has occurred despite a Trump Executive Order requiring administration officials to promise not to lobby for 5 years after termination.
- Oregon Earmarks under Scrutiny: The Oregonian reports the story of a former Oregon lawmaker who participated in the “dubious campaign practice” of accepting money on the condition that it is passed through to another candidate. The Oregon Ethics Commission takes the position that if the true source of the donation is not disclosed, that violation is a felony punishable by a fine of up to $125,000 and five years in prison. “The practice of rerouting contributions… was common in Salem,” according to the former lawmaker.
- Ask, but Don’t Tell: Politicians are raising money for charity, but not reporting their activity according to the Los Angeles Times. The article describes the failure of a number of city officials to report behested payments as required by law. “L.A. officials have a long history of drumming up charitable donations from a range of City Hall interests,” according to the Times.
- When Taxpayers are (Unwitting) Political Donors: The California Fair Political Practices Commission is seeking authority to prosecute violations of state law in which government entities spend taxpayer money on political campaigns. According to the Los Angeles Times, “since 2015, the agency has received 34 allegations of public agencies misusing taxpayer funds for campaign purposes, including mass mailings.”
At its meeting this week, the Commission was confronted by yet another angry complainant who asserted that a group operated by city officials out of Burbank City Hall used hotel tax funds to promote a ballot measure to expand Burbank Airport. The Commission currently lacks the authority to investigate, other than to assess fines against those entities that fail to report their activity.
- You Can’t Take it with You: A former congressional candidate from Rhode Island has been charged with violating personal use prohibitions by transferring over $700,000 in campaign contributions to his personal accounts. According to The Hill, H. Russell Taub also withdrew over $100,000 in cash and spent more than $200,000 on personal expenses using campaign donations, thus bilking his campaign of over a million dollars.