Latest Developments:
- Federal Contractor Relieved: A company accused of violating the prohibition against federal contractor contributions can rest more easily. Bloomberg Government reports that, after months of investigation, the Commission essentially came to the same conclusion as in a prior case and declined to find probable cause of a violation under the circumstances. The article questioned whether “a company giving money to a super PAC doesn’t have to be ‘separate and distinct’ from one having government contracts.” However, a detailed statement by the three Republican commissioners offers the reasoning behind the decision, criticizes the test proposed by commission attorneys for determining when a company or its affiliate hold a government contact, and questions whether the prohibition would survive a court challenge in regard to Super PAC contributions. The decision does not immediately impact other recent enforcements against corporations contributing to federal Super PACs.
- A Federal Election Commission draft audit report accuses Senator Mike Braun’s 2018 campaign of “receiv[ing] ‘apparent prohibited loans’ and lines of credit totaling $8.5 million. Most of that money came from financial institutions ‘that did not appear to be made in the ordinary course of business’ because the banks were not assured repayment.” As USA Today reports, Braun contends that “it’s not abnormal for ‘creditworthy’ individuals such as Braun to get unsecured lines of credit” and that the banks did not provide the loans “for the purpose of influencing the outcome of the Candidate’s candidacy…[but] in their own commercial interests.”
- The Washington Public Disclosure Commission released the text of its proposed amendments to regulations regarding digital political advertising disclosure. The Commission describes the changes as: “Permitting additional time for a commercial advertiser to respond to a request for inspecting records, where the sponsor has not identified an order as political advertising; Requiring the commercial advertiser selling the ad to provide its own identification with the ad if it is published on another platform; and Clarifying the scope of demographic information a digital advertiser is required to maintain for public inspection.” A hearing is set for December 2. Comments are due by November 29, 2021
- The San Francisco Ethics Commission released its draft ordinance and regulation amendments in its efforts to restrict gifts to public officials from restricted sources. The proposal is a response to a federal investigation of City Hall and charges that “allege numerous instances in which individuals seeking favorable outcomes from City government provided meals, travel, luxury goods, and other gifts in an attempt to influence the actions of City officers and employees.” A hearing is scheduled for December 2.
In Case You Missed It:
- PAC Impersonators: Federal prosecutors indicted PAC administrators for allegedly “us[ing] the name and likeness of Donald Trump and other politicians to ostensibly raise money for a network of political action committees.” Yet, as Politico reports, of the $3.5 million raised leading up to the 2016 election, only $19 was distributed to candidate or any political purpose. The indictment, which was unsealed on Wednesday, “charged [Matt] Tunstall and Robert Reyes with conspiracy to commit wire fraud and to lie to the Federal Election Committee.” Prosecutors also indicted Tunstall with additional “counts of wire fraud and money laundering” and a “third associate…with conspiracy to commit wire fraud and to lie to the FEC and multiple counts of wire fraud.”
- Corporate America Coming Back to the GOP: According to Politico, Republican lobbyists say that “big business is warming up to the Republican Party again, less than a year after Jan. 6 but with the 2022 elections in sight.” Recent election results “ignited interest from their corporate clients on making inroads with GOP officials on the Hill.”
- Double Barreled Donations: The Milwaukee Independent reports that two PACs affiliated with a prominent second amendment group allegedly made $35 million in coordinated illegal campaign contributions to various candidates for federal office. A suit filed this week in federal court claims that the PACs “and the [federal candidate] campaigns us[ed] the same political messaging firms to disguise coordinated campaign activity as independent advertising.” The lawsuit contends that the firm is actually one company operating under two names and was employed to “coordinate, create and place complementary advertisements — exactly the type of coordination that is not supposed to be allowed between campaigns and outside groups.”