Latest Developments:
- The Governor of Illinois indicated that he will sign SB 539, according to the Chicago Tribune. Among other things, the bill would expand state lobbyist registration to include local lobbyists, regulate consultants who work for lobbyists, expand revolving door provisions, and expand the geographic coverage of the prohibition on making certain campaign contributions during a legislative session. The Governor has 60 days from June 30 in which to sign the bill.
- The United States Department of Justice announced that a federal grand jury issued an indictment of a former Trump presidential campaign advisor. The New York Times describes the indictment as “federal charges of violating a federal law requiring lobbyists for foreign interests to disclose their work to the Justice Department.”
In Case You Missed It:
- Zombies to Rise in 2022: Bloomberg News reports that with a number of congressional retirements in 2022, additional campaign funds will become “zombies,” which are campaign funds controlled by former officeholders who are not seeking election to any other office. According to the article, one retiring senator “is sitting on more than $16 million in two campaign accounts—far more money than any other retiring lawmaker has ever had… Many of these so-called zombie committees last for years after the lawmakers who established them left electoral politics or even died, even though the Federal Election Commission has urged them to disburse their money and shut down. Few enforcement actions have been taken, and actual penalties are rare.”
- Keeping Promises is Ethical: Politico reports on increasing pressure on the Biden administration “to follow through on his campaign promise to press for an aggressive 25-point plan for ethics reform” in the face of what some watchdog groups see as a meager legislative push. While the President has enacted executive orders governing his staff, ethics advocates stress that “longer lasting reforms come through legislative action.”
- When the Dead Contribute: According to Roll Call, a Member of Congress reported a contribution from a donor who had been dead for seven months. The campaign later “amended disclosure forms filed with the Federal Election Commission to remove the dead woman’s name.” The contribution is now from her husband. The article notes that Federal Election Commission advisory opinions permit contributions from decedents in limited circumstances.
- Nonprofits Beware: The Associated Press confirms that the IRS received a complaint against a nonprofit charity alleging that the nonprofit engaged in partisan politics. The organization is “ registered as a 501(c)(3) nonprofit, [and thus] barred under U.S. Internal Revenue code from ‘directly or indirectly participating in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for elective public office.’” The organization indicated that it does not share information with political parties but provides a database to legislators “not… for campaigning but for communicating with constituents.”
- Lobby Business Booming: Roll Call describes how “Cash floods K Street as Democrats focus on spending and taxes.” One lobbyist noted the driving force is that “‘Democrats continue to embark on one of the most ambitious policy agendas in recent history.’” With multiple issues, including taxes, infrastructure and earmarks, trade, and healthcare all up for consideration in legislation, another lobbyist noted, “‘It’s like having 10 fronts working all at the same time.”