Developments in Federal and State Campaign Finance, Lobbying, and Ethics Laws
A federal court last week ruled that a small nonprofit, formed under Wyoming law to advocate positions on various political issues, may have to include certain federally-mandated disclosures on its ads and fundraising appeals, and may even have to register and report as a federal political committee.
The ruling is an important reminder that advocacy…
The New York State Joint Commission on Public Ethics (“JCOPE”), which oversees and regulates ethics and lobbying in New York, hosted the first in a series of roundtable discussions with the regulated community on March 8 (in Albany) and March 15 (in NYC).
The March roundtable discussions focused on the new Reportable Business Relationship (“RBR”)…
In the recent press release announcing his retirement, Senator Carl Levin announced that he will use his last two years running the Permanent Subcommittee on Investigations (“PSI”) to “encourage” the IRS to provide aggressive oversight of tax-exempt groups that are primarily engaged in politics. The prospect of hearings could potentially expose the inner workings of…
The New York State comptroller filed a lawsuit against Qualcomm on behalf of the New York State pension fund, a major Qualcomm shareholder and the country’s third largest public institutional investor, seeking access to the company’s records to determine how it is spending corporate funds in the political arena.
According to the novel complaint, which…
Many “political” organizations have 501(c)(4) arms that claim to allow their donors to remain anonymous. Donors who don’t mind being disclosed often give to independent expenditure committees (“super PACs”), which publicly disclose all of their donors to state or federal officials. Those who prefer not to disclose their name, address, occupation, and employer will often…
The landmark Supreme Court ruling in the Citizens United case paved the way for explosive growth in political spending during the 2012 election cycle. However, for government contractors and their principals, a growing number of “pay-to-play” laws restrict political contributions and fundraising, and can result in severe penalties, including the loss of contracts. Venable has…
Americans for Responsible Leadership (“ARL”), a Phoenix-based nonprofit organization, disclosed its donors today in response to a ruling late yesterday from California’s highest court. The suit to enforce a new California disclosure regulation was filed by the state’s Fair Political Practices Commission (“FPPC”). According to the FPPC, the contribution was funneled to ARL from two…
New York Attorney General Eric Schneiderman has reportedly been investigating 501(c)(4) organizations that have been involved in political activities. According to the New York Times, his office has sent letters to nearly two dozen groups seeking information about their activities. The exact aim of this investigation is not clear, but commentators have suggested that it…
Tax-exempt groups known as 501(c)(4)’s have become a potent force in the 2012 election, eclipsing Super PACs as the vehicle of choice for many corporations and individuals because 501(c)(4)’s do not have to disclose their donors. Amid growing controversy about whether some 501(c)(4)’s are engaged in more extensive election-related activity than the law allows or…