Latest Developments:
SEC Issues Proposal to Rescind “Pay to Play Rule” for Investment Advisers
The Securities and Exchange Commission has issued a proposal to rescind the “pay to play rule” of the Investment Advisers Act (Rule 206(4)-5) that prohibits investment advisers from providing compensated investment advisory services to a government client for two years after making a political contribution to certain elected officials or candidates. SEC Press Release – Rescission of Political Contribution Rule Proposed The SEC stated the rule has led to unintended consequences, including operational challenges, de facto strict liability for minor infractions, and restrictions on political speech at the state and local levels. No changes are in effect yet, as a public comment period precedes any adoption.
Supreme Court Says Political Parties Can Pay Same Low Ad Rate as Candidates
The Supreme Court ruled that political parties can pay the cheaper ad rate that candidates enjoy in the final weeks before an election. Supreme Court Opinion The Court held that Republican Party committees bringing the suit “were likely to suffer ‘irreparable harm’ unless the justices cleared the way for them to receive the low-cost ad rates” and that charging them a higher rate would implicate their “First Amendment rights to speak and coordinate their political activities freely.” NY Times – Lowest Unit Charge Allowed for Political Party Ad Buys Democrats had challenged the Federal Communication Commission’s expansion of the rate, which is legally reserved for “any person who is a legally qualified candidate for any public office.”
Dozens of Pennsylvania Lawmakers Now Registered as Lobbyists
Spotlight PA analyzed disclosures on Pennsylvania’s state lobbying database to report that “at least 48 former members of Pennsylvania’s General Assembly are now registered lobbyists seeking to influence policies they once shaped.” Former PA Lawmakers Now Registered to Lobby The report also linked to the Pennsylvania State Ethics Commission’s 2025 Annual Report, noting two cases on revolving door violations. Ethics Commission Report
California Lobbyists Convicted of Corruption to Be “Banished” from Capitol
Assembly Bill 2592 Bill Info would banish lobbyists convicted of corruption from the Capitol for 12 years and was advanced a few weeks before the lobbyist who previously served as Governor Gavin Newsom’s chief of staff awaited sentencing on charges of fraud and lying to the FBI. The legislation would require lobbyists to take ethics training and certify, upon their registration with the Secretary of State, that they have not been convicted of public corruption within the last 12 years. As of this publication, the bill awaits signature. Sacramento Bee – Anti-Corruption Crackdown on CA Lobbyists
Reports Show South Dakota Senate Staffer Also Working as Lobbyist
Politico analyzed state records to report that a senior staffer for Sen. Mike Rounds (R-S.D.) “has quietly worked as a lobbyist” for high-profile clients before the South Dakota Legislature on behalf of more than a dozen clients, and co-owns a government affairs firm not listed in the records. The allegations underscore the critical need for those hiring lobbyists to conduct diligence to avoid adverse attention. Politico – S.D. Aide Also Registered Lobbyist
Events and Reminders:
A Nielsen Merksamer “shout out” to summer law clerk Kish Richardson, a 3L at the University of Virginia School of Law, for encouraging service as a poll worker and underscoring poll workers’ importance to democracy, in a video posted on LinkedIn by the American Bar Association. ABA – Poll Workers-LinkedIn and see the ABA’s dedicated webpage, ABA – Poll Worker, Esq.
Early bird registration is open for those who wish to attend the annual conference of the Council on Governmental Ethics Laws, scheduled for December 6 to 9, 2026, in Denver. COGEL brings together professionals working in ethics, elections, campaign finance, lobbying, and open government. Learn more here: Home – 2026 COGEL Conference – Council on Governmental Ethics Laws
In Case You Missed It:
Vast Majority of Americans Believe Government Corruption is Widespread, Poll Shows
Polling published in The Washington Post shows “nearly 90% of Americans believe government corruption is widespread” and “have the highest level of distrust in their government in two decades,” a feeling shared across party lines. Washington Post – Americans Believe Government Corruption Widespread
Aides to President Report Large Cash Gifts in Required Disclosures
Three aides to the President, including his special assistant Natalie Harp, reported that he gave them cash gifts of $45,000 each, amounting to 30 percent of their salaries, while a fourth aide reported a $20,000 gift. The aides’ required public disclosures identified the President as the donor and were titled “cash gift for the holidays,” another reminder of the recipients’ duty to report gifts. In many state and local jurisdictions, gift donors may also need to disclose gifts. Politico – Trump Cash Gifts to Aides
Judge Quits and Avoids Potential Ethics Sanctions
An Orlando, Florida judge resigned her seat to avoid potential discipline for violating a judicial ethics rule by making almost $30,000 in political donations, before she would have faced a hearing before Florida’s Judicial Qualifications Commission. The Florida Supreme Court had rejected proposed discipline that would have included only a public reprimand, pushing for a fine and suspension as well, but gave the parties 30 days to reach an agreement, which did not occur. Law360 – Judge Retires, Avoids Ethics Sanctions
L.A. Mayor Returns Contributions from Leaders of Nonprofit That Received Gang Prevention Contracts
After an investigation by the Los Angeles Times uncovered contributions from leaders of a nonprofit group that received millions of dollars in gang prevention contracts from the Mayor’s Office, Mayor Karen Bass is reportedly returning $9,700 in contributions. The city’s ethics laws focus on the bidders and contractors who make campaign donations, restricting certain types of campaign fundraising by businesses, nonprofits and their leaders once they bid on a city contract. L.A. Times – Bass Returns Contributions