Latest Developments:
- The U.S. District Court for the Southern District of New York, in Citizens Union of the City of New York v. Attorney General, struck down a New York ethics law that required that nonprofits that engage in certain lobbying or issue advocacy activities disclose their donors. Specifically, the court struck down: (1) a provision that required charities (501(c)(3) organizations) that make contributions to a nonprofit (501(c)(4) organization) that engages in lobbying activity disclose all donors that gave more than $2,500 to the charity and, (2) a provision that requires a nonprofit (501(c)(4)) to disclose donors of $1,000, or more if it spends more than $10,000 in a calendar year on communications to at least 500 people concerning the position of an elected official on potential or pending legislation, unless the donor’s money has been segregated for another purpose. The Albany Times Union reports on the case and notes that “the (Cuomo) administration is considering an appeal of the federal judge’s ruling.”
- The U.S. District Court for the District of New Jersey enjoined portions of S. 150, approved by the Governor last June. The New Jersey law requires that certain organizations engaged in making independent expenditures file disclosure reports if they raise or spend in excess of $3,000, including disclosure of the identity of major donors of over $10,000. In Americans for Prosperity v. Grewel, the court enjoined New Jersey from requiring the disclosure of the identities of those donors because the plaintiff is likely to win its case on the merits. The plaintiff asserts that the law would chill First Amendment rights by deterring potential contributors. An article by NJ Spotlight points out that New Jersey has a variety of options to appeal the decision or fix the law.
- The Governor of California signed A.B. 730 which prohibits distributing any so-called “deep fake” videos with malice intended to harm a candidate that include a picture of the candidate’s face superimposed on another person within 60 days of an election at which the candidate appears on the ballot. The bill includes exceptions for, among others, satire or parody and certain media outlets.
- The Washington, D.C. Metropolitan Area Transit Authority revised its ethics policy following criticism over its investigation of a former chair of the commission who was found to have a conflict of interest in a proceeding that was described as “secretive.” The revised rules, according to the Washington Post, “include expanding and clarifying disclosure requirements, making the transit agency’s inspector general the primary investigator of probes and allowing the public access to written reports of findings and rulings. Board discussions about complaints or subsequent investigations will also be open to the public.”
In Case You Missed It:
- No Quorum, but Enough for Headlines: While the Federal Election Commission lacks a quorum to undertake any substantive business, two remaining commissioners engaged in public debate. The Washington Post reports that the Chair was blocked by a fellow Commissioner from including “a draft memo on prohibited foreign national electoral activity” in the agency’s weekly digest that is emailed to interested parties. The Chair nevertheless published it through 57 tweets.
- Lobbyist/Corporate Cash Desperately Wanted Regardless of Nominee: Politico reports that organizers of the Democratic National Convention in Milwaukee pandered to corporate lobbyists last week, seeking funding for the convention. “Democratic National Committee officials explained during the meeting how corporations can help foot the bill for the convention, regardless of who the nominee is.” Lobbyists expressed concern that corporate clients could be embarrassed as some of the leading candidates have rejected corporate PAC and lobbyist contributions.
- Not Pay-to-Play, just a Software Glitch: The President of the Brooklyn Borough, and a presumptive candidate for Mayor of New York City ran afoul of city ethics rules, for the third time, according to the New York Post. An email blast sent to 23,000 people for a gala fundraiser hosted by Rosie Perez included recipients who have various business relationships with the city. The Post points out that “the missive lacked one key thing: a mandatory disclaimer warning prospective donors that any contribution ‘will not affect any business dealings with the city or provide special access to city officials.‘” A spokesman said “it was unintentional and blamed it on a Borough Hall computer error.”
- “There Goes the Neighborhood”: Residents in Washington, D.C. are decrying a trend that is a variation on gentrification: lobbyists, fundraisers, and associations purchasing historical residences near the U.S. Capitol for nonresidential activity. Roll Call reports that the trend has upset neighbors who complain the parties and activities result in additional traffic and noise, including catering trucks that block street access. Also of concern is whether zoning laws have been violated and whether businesses are ducking commercial rate property tax rates and paying much lower residential property taxes.