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E-News from State and Federal
Communications, Inc.
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December 2011
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Professional Development –
Part Deux
The
most popular conferences for government relations professionals
are around the corner and both are brought
to you by the Public Affairs Council. The Grassroots Conference
is in Miami Beach from January 30th to February 2nd
and the National PAC Conference is in Orlando from February 27th
to March 1st.
First, get past the fact both conferences are in
Florida. The Council keeps us busy enough
that we rarely get more than a few hours to mill around.
Second, what you need to know is the Council
makes sure it has the top-of-the-line speakers for the programs
and the sessions are mixed in with people in the field who are
doing great things in both grassroots advocacy and PAC
recruitment.
Finally, and most important, you will find State
and Federal Communications involved with the conferences. We
have been involved with the advisory board for each conference,
sending a number of staff, and we are included in the Market
Resource Program.
You can obtain more information about these
conferences at
www.pac.org.
Until next month, continue to plan for your
professional development. There is nothing like developing the
important skills for your organization.
Elizabeth Z. Bartz
President and CEO |
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California’s
Senate Bill 398 Affects Placement Agents
by
Sarah Kovit,
Esq.
Research
Associate
On October 9, 2011, following the end of the legislative
session, California Governor Jerry Brown signed Senate Bill 398 into
law. The bill is part of the state’s ongoing effort to regulate
investment managers who conduct business with California’s public
employee pension funds. The bill, which alters definitions as well as
registration and reporting requirements, went into effect upon
signature.
Specifically, the new law modifies the definition of
external managers and placement agents. The modified
definitions clarify that an investment company registered with the
Securities and Exchange Commission (SEC), such as a mutual fund, does
not fall within the definition of investment funds for the
purpose of the statute. Further, an external manager includes any
adviser to a securities portfolio.
An additional result of the new law is the exemption of
placement agents from any requirements imposed by a local government
agency, including lobbyist registration and reporting, if the placement
agent is an employee, officer, or director of an external manager, and
if the external manager is registered as an investment adviser or a
broker-dealer with the SEC or any state securities regulator. Further,
placement agents are exempt from local requirements if the external
manager is participating in a competitive bidding process, such as a
request for proposal, or has been selected through a competitive bidding
process and is providing services pursuant to a contract executed as a
result of that bidding process, or when the external manager, if
selected through competitive bidding, has agreed to a fiduciary standard
of care for the contract. Placement agents who believe themselves to be
exempt should be sure to check with local officials for potential
conflicts regarding the applicability of local regulations to placement
agents.
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Legislation We Are
Tracking
At any given time, more than 1,000
legislative bills, which can affect how you do business as a government
affairs professional, are being discussed in federal, state, and local
jurisdictions. These bills are summarized in the State and Federal
Communications’ digital encyclopedias for lobbying laws, political
contributions, and procurement lobbying, and can be found in the client
portion of the State and Federal Communications' website.
Summaries of major bills are also included
in monthly e-mail updates sent to all clients. The chart below shows the
number of bills we are tracking in regards to lobbying laws, political
contributions, and procurement lobbying.
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Total bills |
Number of Jurisdictions |
Passed |
Died |
Carried over to 2012 |
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Lobbying Laws |
206 |
48 |
31 |
83 |
43 |
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Political Contributions |
386 |
51 |
49 |
133 |
78 |
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Procurement Lobbying |
184 |
42 |
21 |
73 |
21 |
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Summary of Changes UPDATE
Note Recent Changes to
Compliance Regulations
by John Cozine, Esq. Research
Manager 
OHIO: Governor John Kasich
signed House Bill 318 into law the evening of Friday, October 21,
2011. House Bill 318 creates two separate primary elections in the
state during 2012. The first primary election, for county partisan
offices, the state legislature, and the available U.S. Senate seat,
will be held on March 6, 2012, while the second primary date, for
the President and U.S. House of Representatives, will be June 12,
2012. The bill is intended to give state lawmakers more time to
settle differences concerning Ohio's recently passed map for
legislative redistricting, as a Democrat-backed coalition seeks to
place the redistricting measure before Ohio's voters for a possible
repeal in 2012 if a compromise cannot be reached.
BRITISH COLUMBIA: A court has ruled
the province cannot restrict election spending in the 60 days
leading up to an official election call. In British Columbia
Teachers' Federation v. British Columbia (Attorney General), the
British Columbia Court of Appeal upheld a lower court ruling finding
portions of Election Act sections 235.1 and 228 are unconstitutional
and are of no force and effect insofar as they relate to the
pre-campaign period as defined in the act. Therefore, the court
affirmed the British Columbia Attorney General cannot restrict
election spending in the pre-campaign period 60 days before the
election period begins. Election advertising preceding a 28-day
campaign period is considered a "pre-campaign" period.
SAN JOSE, CALIFORNIA: The San
Jose City Council voted unanimously on Tuesday, October 18 to change
the city’s campaign finance laws. Changes approved include the
elimination of the city’s blackout periods which prohibit campaign
contributions within 17 days of a regular election and within seven
days of a special election. Per the new law, the voluntary candidate
campaign expenditure limits will increase from $1.00 per resident
per election to $1.25. The rate for mayoral elections will remain
the same at $0.75 per resident per election. Further changes
implemented by the new law eliminate an increase in the voluntary
expenditure cap triggered by the fundraising efforts of other
candidates and independent committees, who do not choose to accept
the limit.
CALIFORNIA:
At its October 13,
2011 hearing, the Fair Political Practices Commission voted 3-0 to
adopt Regulation 18421.31 regarding text message contributions. Per
the new regulation candidates and committees are permitted to raise
funds through low-dollar text message contributions. For the
purposes of the regulation, contributions are deemed to be received
on the date a mobile fundraising vendor, acting as an agent of
the candidate or committee, obtains possession and control of the
funds. Once received by the mobile fundraising vendor, contributions
must be promptly reported to the candidate or committee’s treasurer
or a designated agent thereof no later than the closing date of any
campaign statement the candidate or committee is required to file.
For text message contributions of less than $25, candidates and
committees will be required to maintain the dates and daily totals
of contributions. For contributions exceeding $25 but less than
$100, the regulation requires that candidates and committees record
the full name and street address of the contributor, the cumulative
amount received from each contribution, and any information
regarding an intermediary where applicable. When a contribution
exceeding $100 is received, the regulation requires that the
candidate or committee maintain a record of the contributor’s name
and address, occupation, employer, the cumulative amount received
from the contributor, and any information regarding an intermediary
where applicable. Under the proposed regulation, a contribution made
by text message will be attributed to the person who is subscribed
to the cell phone number from which the contribution is received.
FEDERAL:
The Federal Election
Commission will no longer prohibit non-connected political committees
from accepting corporate and labor organization contributions,
provided the political committee maintains and deposits those
contributions into separate bank accounts. The commission will also
not limit the amounts permissible sources can contribute to such
accounts. In an statement released by the commission, it stated,
consistent with its agreement to a stipulated order and consent
judgment in Carey v. FEC, it would no longer enforce 2 U.S.C.
§441a(a)(1)(C) and (a)(3), as well as any implementing regulations,
against any non-connected political committee with regard to
contributions from individuals, political committees, corporations,
and labor organizations under certain conditions. A single committee
may now contribute directly to candidates and political committees,
and make independent expenditures, separating the funds only by
using two separate bank accounts. The committee must maintain the
statutory limits on the solicitation of funds used for direct
contributions while it may simultaneously seek unlimited funds for
use in their independent expenditures. The commission intends to
develop new regulations and amend its reporting forms. Until that
time, the commission says committees should follow the procedures
outlined in its current statement.
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ASK THE EXPERTS
State and Federal
Communications’ Experts Answer Your Questions
Here is your chance to “Ask the Experts” at State and
Federal Communications, Inc. You can directly submit questions for this
feature, and we will select those most appropriate and answer them here.
Send your questions to:
marketing@stateandfed.com.
(Of course, we have always been available to answer questions from
clients that are specific to your needs, and we encourage you to
continue to call or e-mail us with questions about your particular
company or organization. As always, we will confidentially and directly
provide answers or information you need.) Our replies to your questions
are not legal advice. Instead, these replies represent our analysis of
laws, rules, and regulations.
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Q. |
I want to make political contributions to a candidate for state
assembly. The limits are per |
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election. How do I make certain the contribution is
attributed to the correct election [primary or general]? Does
it matter when I give the contribution in relation to the
election? |
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A.
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In this situation it is important to have
a “meeting
of the minds” between the contributor
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the candidate. The contributor’s
intent should be made clear by either indicating the name of the
election on the memo line of the check [e.g., 2012 Primary
Election], or including a cover letter with the check, or
both. The cover letter can contain language specifically
earmarking the contribution for the intended election. Using
these precautions should prevent the candidate from allocating
the contribution to an election different from the one intended
by the contributor, thereby resulting in a violation of the per
election contribution limits. It is not unusual for a
candidate to file his pre- or post- election reports disclosing
aggregate contributions from a donor in violation of the per-election limit. The candidate
may have allocated two or more checks to
one election, but the contributor intended one check for the
primary and one for the general.
Furthermore, a contributor must
be aware of the timing of the contribution. For instance, in
New Jersey, you only have 17 days after an election to make a
contribution for that particular election; otherwise the
contribution is automatically applied toward the next election,
regardless of the contributor’s intent. |
Wealth of Information at
www.lobbycomply.com
Want to interact
with your fellow government affairs and procurement colleagues? Then
jump into the State and Federal Communications, Inc. blog at
www.lobbycomply.com.
Once there, you
can join the exchange of ideas and view solutions to common challenges
and problems. Also, State and Federal Communications continually adds
content to the blog, including ‘hot topics,’ which are summaries of
important news items you need to know.
Join
the conversation, and make use of this valuable information resource.
State and Federal
Scrapbook
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The great Cincinnati Reds Catcher, Johnny
Bench, at the State Government Affairs Council (SGAC)
2011 Foundation
Leaders'
Policy Conference in Miami Beach,
Florida, pictured with SGAC President
Elizabeth
Z Bartz and David Christman. |
Ohio Senate President Tom Niehaus with
former Cincinnati Reds Catcher Johnny Bench
at the SGAC Leaders Policy Conference. |
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American League of Lobbyists who received
Lobbying Certificates at the annual meeting on November 16,
2011. |
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Elizabeth Bartz enjoyed an SGAC event with
Dana Perino,
Fox News and former White House Press Secretary for
President George W. Bush. |
Federal Compliance Associate Rebecca South
with
American League of Lobbyist President Howard Marlowe.
Rebecca received her Lobbying Certificate at the
ALL Annual Meeting in DC on November 16th. |
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An exciting moment for State and Federal
Communications intern, Zack Koozer, as he prepares to vote
for the first time.
Thanks for doing your duty as an American citizen. |
After the Regina Brett Show LIVE! at WKSU on
Wednesday, November 16, Elizabeth Bartz sat down with Regina
to get her book autographed for her mom and dad. |
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During the post show announcements, Elizabeth
acknowledged WKSU as her first job. She mentioned that
she was
honored
to sponsor this event, as she had been a Regina Brett fan for
many years. |
See Us in Person
Plan to say hello at future
events where
State and Federal Communications
will be attending and/or speaking regarding
compliance issues.
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December 4-7, 2011 |
Council on
Governmental Ethics Laws
Nashville, Tennessee |
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January 8-13, 2012 |
Public Affairs Council Institute
Laguna, California |
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January 30 - February 2, 2012 |
National Grassroots Conference
Miami, Florida |
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February 27 - March 1, 2012 |
National PAC Conference
Miami, Florida |
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NOW is published for our customers and friends. To
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State and
Federal Communications, Inc. | Courtyard Square | 80 South
Summit St., Suite 100 | Akron, OH 44308 | 330-761-9960 |
330-761-9965-fax | 1-888-4-LAW-NOW|
http://www.stateandfed.com/
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The Mission of State
and Federal Communications is to make sure that your
organization can say, "I Comply."
We are the leading
authority and exclusive information source on
legislation and regulations surrounding campaign finance
and political contributions; state, federal, and
municipal lobbying; and procurement lobbying.
Contact us to learn how
conveniently our services will allow you to say "I
Comply" for your compliance activities.
http://www.stateandfed.com/
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