Latest Developments:
- The Governor of Florida signed SB 1890, which limits contributions to ballot measure committees to $3,000 until the measure has qualified for the ballot. [The ACLU has filed suit to enjoin this provision.] Among other things, the measure also preempts local contribution limits that differ from state limits and all local limits on electioneering communications and independent expenditures. The bill takes effect July 1, 2021.
- The Governor of Maryland approved B. 4, which expands the state’s gift limits to ban public officials and state employees from accepting gifts from persons representing local governments. Maryland Matters explains that the state’s gift law generally requires that food and beverages be consumed in the presence of a lobbyist to be permissible. In the age of virtual lobbying, lobbyists for local governments were able to continue to purchase meals while other lobbyists were prohibited from doing so. The measure also prohibits retaliation for reporting or participating in an investigation of a state’s ethics law violation. The bill takes effect June 1, 2021.
- The Chair of the California Fair Political Practices Commission, considering recent newsworthy events, asked staff at the recent meeting to discuss the use of “donor-advised funds” in connection with the behested payment regulations scheduled for hearing in July. He also asked staff to discuss at a future hearing, whether the Commission has any regulatory authority over the use of checkboxes for recurring contributions in campaign fundraising.
In Case You Missed It:
- Bundle, in Lieu of Pay-to-Play Limit: The Gothamist compared New York City’s Doing Business Database to the City Campaign Finance Board’s registered bundler list in connection with the New York City Mayor’s race. According to the article, “Two dozen people who are limited from contributing to candidates because of their business ties with the city are legally circumventing those restrictions by serving as “bundlers,” or moneymakers who collect donations for candidates.”
- Corporate Political Spending Transparency: MarketWatch reports that the New York State Common Retirement Fund has successfully passed several shareholder proposals to require “more detailed disclosure” of corporate “direct and indirect political spending.” The article indicates that “transparency advocates are now taking the fight to the next level: the Securities and Exchange Commission. Congressional Democrats want to remove a budget rider that in recent years has prevented the SEC from issuing a rule requiring public companies to disclose their political spending.”
- Recurring Contribution Format Thrives: We reported last week that the Federal Election Commission is asking Congress to ban the practice of collecting recurring contributions through prechecked boxes. This week, Politico reports that the practice is alive and well among candidates in the California gubernatorial recall election, although the Governor’s committee stopped using the format this month.
- Paying Penalties with Campaign Cash: The New York Daily News reports that a candidate for New York City Comptroller used funds from his State Assembly campaign to pay a fine imposed in connection with his 2009 campaign for City Comptroller. Critics argue that it is a personal use of campaign funds to pay a fine and that state campaign funds cannot be used for a city election. The candidate’s attorney says that it was not a personal use and that campaign funds can be used “in connection with anything arising out of a political campaign.”
- Pay-to-Play Investigation: The San Diego Union-Tribune reports that a San Diego developer who was nominated for an ambassadorship in the past administration, is being investigated by a federal grand jury in Washington, D.C. for a possible pay-to-play scheme. Previous reports revealed emails that “implied the San Diego developer would make additional contributions after winning confirmation.” The new report discloses that a grand jury “has begun issuing subpoenas in a criminal investigation into the nomination.”