When the 2017 tax reform bill passed, it included a provision that imposed an excise tax on compensation above $1 million for certain kinds of entities—including political action committees (PACs)—even if paid by the connected organization and not the PAC itself. Some companies feared that having senior executives provide services to the PAC could trigger
The Federal Election Commission Proposes Rules for Online Political Advertising
The Federal Election Commission (FEC) this week issued a Notice of Proposed Rulemaking, asking for public comment on proposals for requiring “disclaimers” on online ads and fundraising. Under each of two similar proposals, paid Internet ads that expressly advocate for candidates or that solicit political donations must state who paid for the ad and
Trump Ethics Order Loosens Hiring Rules, but Tightens Post-Employment Restrictions
On January 28, 2017, President Trump signed an Executive Order that imposes an extra layer of ethics obligations on presidentially appointed members of the White House and Executive Branch.
Overall, President Trump’s Executive Order takes a somewhat different approach than the “Ethics Pledge” issued by the Obama administration, expanding some restrictions and loosening others. In
Election Year Tips for Employers
From now until the polls close on Tuesday, November 8, 2016, politics will be inescapably in the air – and in the workplace. Employees will be talking, and sometimes arguing, and sometimes participating in one campaign or another. Prudent employers should take note of what they may be required to do or prohibited from doing about their employees’ desire to participate in the electoral process.
Continue Reading Election Year Tips for Employers
Maryland Changes Rules Again on Political Contribution Disclosure by Government Contractors; Lobbyist-Employers Also Affected
Following a major rewrite last year of its “pay-to-play” disclosure rules, Maryland has made further changes that expand the obligations of state and local government contractors to report their political contributions, and those of their subsidiaries, officers, directors, partners, and PACs. Now, in addition to reporting direct contributions to candidates, contractors will also have to
Naming Your PAC
The Washington Examiner recently wrote about the art of naming a PAC, pointing out that the name must “balance patriotic with practical considerations.” The Examiner talked about making sure the name is not too long if the PAC will have to include “paid for by” statements on its ads. But there are some other legal considerations as well. Let’s look at some of the FEC’s naming rules.
If the PAC is a connected PAC, meaning it is supported by a company, union, nonprofit, or trade or professional association, then it must include the full name of the connected organization. We have seen registrations rejected by the FEC for failing to include “Inc.” or “Company” if that full legal name of the entity includes those signifiers. Thus, Widget Manufacturing Company of Our Town, Inc. must include all of those words in the name of the PAC. That name must appear in all legal disclaimers.
501(c)(4) Proposed Regulations—An Unsafe Harbor
On November 26, the Department of Treasury released proposed regulations billed as “more definitive rules” for when the IRS will treat certain activities by section 501(c)(4) organization as political activity. It is hard to argue that the proposal provides some clarity, but only by classifying a wide variety of activities as candidate-related and therefore not
New York Ethics Watchdog Makes Additional Tweaks to Proposed Ethics Rules
New York State’s ethics and lobbying watchdog, the Joint Commission on Public Ethics (“JCOPE”), released revised draft amendments to its gift and honoraria rules and source of funding (“SOF”) regulations. JCOPE will seek formal public comment on all of these proposed rules. Copies of the new draft rules can be found here.
In January,
NYS Regulator Hosts Roundtable on New Lobbying Disclosure Rules
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”)
Court Rules on Donor Disclosure for Advocacy Groups; Van Hollen Case Overturned
Today a D.C. federal appeals court temporarily reinstated a Federal Election Commission rule concerning when advocacy groups and others must disclose their donors, but has directed the FEC to clarify the rule or return to the courts for more litigation. The effect of the ruling is to put in limbo a key disclosure rule less