Latest Developments:
- COVID-19 Update: Many Regulatory Agencies have modified their practices in response to the COVID-19 emergency. Some agencies have postponed hearings and are closed to the public, but available by telephone or internet. Each week we will add the latest information. For more information, contact our Political Reporting Unit. Among the more notable developments this week:
- The Governor of Connecticut issued Executive Order 7J authorizing “the Secretary of the Office of Policy and Management or her designee, or the Commissioner of Administrative Services, as applicable, to take any action they deem necessary” to expedite certain contracts by modifying certain requirements including gift disclosure requirements for contracts that exceed $50,000. CTPost reports that officials and regulators feel the “orders do not encompass the kind of pay-to-play scenarios that resulted in (prior scandals).”
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- The Connecticut Office of State Ethics announced that anyone who cannot meet the April 10 deadline for filing first quarter lobbyist reports will be granted a 30-day grace period, thus requiring those reports to be filed by May 10, 2020.
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- The California Fair Political Practices Commission issued a reminder that contributions made at the behest of a public official in the state must be reported to the Commission. The notice quotes the Chair: “‘We don’t want to impose an unreasonable burden on those officials who are helping to raise money for food, supplies and other items. But we also recognize the necessity of transparency, and we’re confident these guidelines will serve to accomplish both goals.’” The reminder notes that if “an official makes best efforts to comply with the Political Reform Act’s behested payment reporting rules but is unable to do so due to the COVID-19 pandemic, the FPPC will consider this a strong mitigating factor in determining whether an enforcement action against the official is appropriate.” The FPPC also extended the deadline for public officials to file their conflict of interest disclosures from April 1 to June 1, 2020. The Commission has not altered deadlines for campaign reports, although it provided guidance and acknowledged that paper filings may be “difficult or even impossible.”
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- The Wisconsin Ethics Commission issued a statement announcing that its employees would be working from home, but the Commission provided a means of contacting the staff with questions. The e-filing system remains available and the announcement points out that documents that must be notarized may be notarized pursuant to guidance issued by the state’s Department of Financial Institutions.
- The United States Supreme Court denied a Petition for Certiorari in Doe v. F.E.C. Bloomberg Government explains that the “Supreme Court rejected a bid to keep secret a ‘John Doe’ donor who gave $1.7 million to a Republican super PAC in a move that could make it harder for political “dark money” groups to shield the identities of their biggest contributors.”
- The Governor of Maine signed S.P. 654, which defines “caucus political action committee,” and permits each party in each house of the legislature to establish and maintain a caucus PAC. The Associated Press reports that the effect of the law is to make caucus PACs subject to regulation by the Maine Ethics Commission. The measure takes effect June 16.
Reminders:
Nielsen Merksamer expresses its concern for all affected by the COVID-19 virus. Based in California, the firm has modified operations to accommodate shelter-in-place orders and remains committed to providing the highest level of service to our clients and the regulated community during this time of crisis.
In Case You Missed It:
- FEC MIA: According to Politico, campaigns are migrating from broadcast and print media to “social media and search engines.” As the change “accelerated in recent weeks, one national player has been noticeably silent: The United States Federal Election Commission.” The article criticizes the Commission, whose online media regulations were last updated in 2006.
- FARA Violations Revealed: In advance of the sentencing of a fundraiser who pleaded guilty to violating the Foreign Agents Registration Act for failing to register, Bloomberg reports that the government revealed that the fundraiser-lobbyist’s clients included “Saudis, Kuwaitis, a faction of the Libyan government, Sri Lanka and Turkey.” The defendant “raised funds for the campaigns of Barack Obama, Hillary Clinton and the inaugural committee of President Donald Trump, and steered hundreds of thousands of dollars to the Republican and Democratic congressional campaign committees.”
- Party On!: According to the Washington Free Beacon Michael Bloomberg was able to donate $18 million to the Democratic National Party by “exploit(ing) a loophole in campaign finance laws.” Individual contributions are subject to limitations ($35,500 to a party committee and $106,500 for a party building/convention fund). But Bloomberg donated hundreds of millions to his presidential campaign committee; his committee is permitted to contribute unlimited leftover funds to the national party.