Latest Developments:
- AI Content in Election Communications: CNN reports that the FEC plans to seek public comment on rules requiring all radio and television broadcast stations that air political ads to disclose on-air if there is “AI-generated content” in the ad. In addition, Florida, Hawaii, New York, Idaho, Indiana, New Mexico, Oregon, Utah, Wisconsin, Alabama, Arizona, and Colorado have passed laws this year requiring disclosures in political ads with deep-fake content; in some states, victims can seek a court order enjoining the content, and in others violators may face criminal penalties or fines up to $10,000. Most of these rules are not expected to affect the 2024 presidential election.
- Investors Poll on Transparency: In a survey from The Zicklin Center for Governance and Business Ethics at the Wharton School, Bloomberg reveals that voters who are invested in the stock market want more transparency in corporate political spending. 87% polled said that public companies should be required to have a code of conduct to set rules for their political spending.
- Court of Appeals Vacates Decision on Campaign Finance Restrictions: Despite the state of Indiana’s defense to “…trust their word that they do not intend to enforce unconstitutional statutes”, the Seventh Circuit has ordered the district court to enter an injunction barring enforcement of said statute that limits contributions a corporation can make to a Super PAC.
- No Pause on Ticket Rule: The Detroit News reports that the Michigan Secretary of State’s Office will not delay enforcement of their decision to prohibit a long-time “ticket exchange” strategy that circumvented the state’s gift limit. Lobbyists would provide tickets for public officials, who would in turn reimburse the amount that exceeded the state’s $76 gift ban. A local lawyer requested the stay of the new rule on the grounds that enforcing it immediately would cause a “destabilizing” effect because the practice had gone on for so long.
- $95,000 Pay-to-Play Fine: Investment News relays that the SEC has fined a Texas-based investment adviser $95,000 because of a contribution that was directed to a Michigan government official with influence over the Michigan Public Employees’ Retirement Fund, which had invested in a closed-end fund managed by the investment adviser.
- New Hampshire Lobby Report Changes: Under HB 1666, lobby reports are now due only 3 rather than 4 times a year (January, May, and September), and all reports must now be filed electronically.
In Case You Missed It:
- $20 Million Bribery Settlement: The Plain Dealer Cleveland reports FirstEnergy has entered an agreement to pay $20 million to avoid criminal prosecution in the ongoing legal actions related to Ohio House Bill 6, on top of a $230 million fine in 2021.
- Ted Cruz Asked to Explain Donations: According to the San Antonio Current, after the FEC became concerned that multiple contributors to Ted Cruz’s reelection campaign had given in excess of the yearly $3,300 limit on individual contributions, it sent the Cruz campaign an “unusually large” 17-page letter asking for explanations for the discrepancies. Texas News reports that Cruz has promised to investigate and return improper donations.
- FBI Investigates Ogles: The Washington Post reports that the FBI executed a search warrant for the phone of U.S. Representative Andrew Ogles (R, TN) after receiving a report that his campaign finance filings contained more than $1 million in discrepancies, including failing to disclose a $320,000 loan to fund his 2022 campaign and a $700,000 line of credit that he opened in 2022.
- NYC Mayor’s Brother Offers but then Revokes Dinner Prize: From the New York Post, Angels Helpers, the charity co-founded by New York City Mayor Eric Adams’s brother, Bernard Adams, auctioned off a dinner with the mayor but then announced that it would be “pulling the prize” after the mayor said he “was never asked about, never agreed to, and will not be participating in this dinner that was auctioned off without his permission.”
- California Legislators Receive Tickets During Ticketmaster Brawl: According to Politico, at a time when legislators were publicly discussing cracking down on monopolies held by Ticketmaster and related companies, 66 California state assembly members and senators received more than $30,000 total worth of concert tickets, including tickets to the Taylor Swift concert that sparked such concern about the industry in the first place.
- Ethics Complaint into North Carolina Distillery Trip: According to the Charlotte Observer, a complaint has been filed against a North Carolina 501(c)(4) entity that is described as a “lobbying front” by the complainant and that conducted an event to which no Democrats were invited and attended by a group of 33 people, including legislators and government officials.