Latest Developments:
- The Alaska Supreme Court sided with the Alaska Public Offices Commission in determining that limits on contributions to independent expenditure committees are unconstitutional. In APOC v. Patrick, the court found that existing limits are unconstitutional as applied to those groups, citing Citizens United. In another case, Resource Development Council for Alaska v. Vote Yes for Alaska’s Fair Share, the court struck down the state’s $1 per signature limit on compensation for initiative signature gatherers as an unconstitutional restriction on political speech.
- The House Committee on Ethics issued several statements acknowledging investigations into Member’s transgressions. Roll Call explains that the House Ethics Committee is investigating four Members of Congress for ethics violations; among them is one member who allegedly “spent thousands in campaign funds on personal pursuits, including on fast food and family vacations.”
- The United States Department of Justice announced that three related trash contractors, in the ongoing investigation of corruption at City Hall, “have agreed to pay $36 million in criminal penalties” and cooperate with prosecutors. In addition to the $36 million fine, the deferred prosecution agreement obligates [the company] to fully cooperate with government investigations, to implement an enhanced corporate compliance program, and to provide annual reports to the United States Attorney’s Office on implementation and remediation.” The prosecution agreement specifically requires that the compliance program include “developing new travel and expense policies, guidance, and reporting mechanisms; new charitable contribution policies and procedures; adoption of a no-gift policy for public officials; [and] training for all employees that might interact with public officials…”
Reminder:
Corporate Political Activities 2021 – Latest Developments: The Pracitising Law Institute (PLI) will conduct its annual two-day conference on October 12-13, 2021, both in-person and online. You may register here.
In Case You Missed It:
- Senate Candidate Charged: According to Courthouse News Services, a Milwaukee Alderwoman who is running for U.S. Senate in 2022 has been charged with felony violations of campaign finance law. The article states that, among the charges, she allegedly “misused more than $13,000 in campaign funds for personal expenses and around $3,200 in campaign funds during travel for city of Milwaukee business, and deposited about $2,700 in campaign checks into her personal bank accounts.”
- Failure to File: WCNC reports that the North Carolina State Board of Elections has assessed a total of more than $330,000 in fines against campaign committees so far this year “for filing their 2020 routine campaign finance paperwork late or failing to file their 2020 reports altogether.” One campaign told WCNC that “transactions were filed accurately with the FEC but not with the state…”
- Pay-to-Play LA: The A. Daily Breeze updates the ongoing L.A. corruption case, which it describes as “a $1.5 million pay-to-play scheme in which real estate developers were shaken down for cash and campaign donations in exchange for help getting building projects through the city’s approval process.” The article sums up a councilmember’s defense as “favors aren’t bribes.” His attorneys assert that his “only crime was acting as an ‘evangelist for robust development’…”
- Southern California Contract Corruption: The Los Angeles Times reports that L.A. County prosecutors have charged four men with corruption in connection with contracts to build a solar power facility for the City of Industry in Southern California. Among those charged are the city’s former manager, the developer, and a former state legislator (who was convicted and sent to prison in 1994 for taking a bribe in an FBI sting known as “Shrimpscam”). The developer is accused of “embezzlement, money laundering, grand theft and misappropriation of public funds”; others are alleged to have “a financial conflict of interest.”