Latest Developments:
- The Illinois Legislature approved a comprehensive ethics reform measure, B. 539. Among other things, the bill prohibits public officers from registering as lobbyists for 6 months after leaving office, bans government officials from lobbying other government entities for compensation, and requires that “consultants,” as defined, register as lobbyists. The bill expands lobbyist regulation to apply to those who lobby local officials, those who solicit others to lobby, and requires local lobbyists, except those in Chicago, to register with the Secretary of State. The measure also expands the prohibition on fundraising during a legislative session. The bill goes to the Governor for approval and would take effect January 1, 2022.
- The United States District Court for the District of Columbia issued an opinion in Cruz v. Federal Election Commission, which found that the federal $250,000 “loan-repayment limit restricts political expression.” Senator Cruz had loaned his campaign more than $250,000 and, under federal rules, unpaid personal loans in excess of $250,000 are deemed to be a contribution if still unpaid 20 days after an election. Courthouse News notes that the “three-judge panel of the U.S. District Court for the District of Columbia unanimously rejected arguments from the FEC that the rule is necessary to prevent quid pro quo corruption.”
- A Bipartisan Pair of Congressmen introduced R. 3389, which would end the revolving door for officials who represent foreign governments. According to the Members’ press release, the measure would “ban retired members of Congress, senior executive branch officials, and general and flag officers of the Armed Forces from lobbying on behalf of foreign interests.” OpenSecrets quotes one observer, “‘These are all people with security clearances. These are people who had access to top secret information, and their next job is to work for an authoritarian regime? I think that should worry people,’…”
In Case You Missed It:
- DOJ Scrutinizes Foreign Lobbying: According to Politico, the U.S. Department of Justice is “looking at whether Blue Star Strategies illegally lobbied on behalf of a Ukrainian company that counted Hunter Biden as a board member.” The article notes that “The probe comes as the Justice Department ramps up its scrutiny of foreign governments’ efforts to influence U.S. politics through covert lobbying operations.” One commentator observed that the “Justice Department enforcement of FARA is now considerably more rigorous, seen not only in high-profile criminal prosecutions but also in day-to-day regulatory enforcement such as administrative inquiries into why parties are not registered, accountability for deficiencies in filings, and inspections of books and records…”
- Charitable Contributions for California’s First Partner: The Sacramento Bee reports that “in recent years, as Newsom’s political star ascended, records show his wife’s nonprofit received more than $800,000 from a dozen corporations that regularly lobby state government on matters affecting their financial bottom lines.” According to the article, those same “donors also gave about $1.3 million to Newsom’s political committees, records show, and some have also donated hundreds of thousands to other charities at Newsom’s behest.” The Newsom’s 2019 tax return show that the first partner “was paid $150,000” by the nonprofit.
- Watchdogs Merging: Maryland Matters reports that the Center for Responsive Politics and the National Institute on Money in Politics are merging into a single entity, “OpenSecrets.” According to the article, “The merger will create a new one-stop shop for integrated federal, state and local data on campaign finance, lobbying and more.” The combined entity will debut a new website later in 2021.
- Postmaster General Investigated: The Washington Post reports that the Postmaster General is under investigation “in connection with campaign fundraising activity involving his former business.” The Post previously reported that employees “were pressured by DeJoy or his aides to attend political fundraisers or make contributions to Republican candidates, and then were paid back through bonuses.” The Postmaster “adamantly disputed that he broke the law…”