Missouri Voters Approve Campaign Contribution Reform Initiative  

Katlin Newman, J.D.,
Research Associate

On November 8, Missouri voters approved dramatic changes to state campaign finance laws. The Missouri Campaign Contribution Reform Initiative (Constitutional Amendment 2) establishes contribution limits, prohibits direct corporate contributions to candidates, and creates questions for political action committees (PACs). The amendment is effective December 8, 2016, 30 days following voter approval.

The amendment creates contribution limits for persons contributing to political parties or committees to elect candidates for state or judicial office. Contributions to statewide candidates and committees will be limited to $2,600 per election. Contributions to political parties will be capped at $25,000 in the aggregate per election at the state, county, municipal, district, ward, and township levels combined.

The amendment also prohibits direct corporate and labor organization contributions to candidates, campaign committees (short-term ballot issue committees), exploratory committees, and political parties. Corporations and labor organizations will be permitted to form PACs to accept contributions or dues from members, officers, directors, employees, or security holders. As written, the amendment places no restrictions on a corporation seeking to use its funds to contribute to a PAC.

While corporate contributions to PACs will be permissible, PAC contributions to other PACs will be prohibited. Implications of the prohibition remain unclear for federal PACs participating in Missouri elections. The amendment allows federal PACs to contribute to in-state PACs, but also requires out-of-state committees participating in Missouri elections to register and report with the state. Currently, federal PACs in compliance with the Federal Election Commission are not required to register with the state. The Missouri Ethics Commission plans to issue further guidance because the amendment allows a federal PAC to contribute to an in-state PAC and requires a federal PAC to register as an in-state PAC, but prohibits an in-state PAC from contributing to another in-state PAC.

The Missouri Ethics Commission has expressed concerns regarding the legality of certain provisions, but will enforce the amendment until any or all of it is deemed unconstitutional. Whether in the form of an advisory opinion, guide, or some other mechanism, the commission will issue additional guidance to ensure a consistent interpretation of the new law.

Summary of Changes UPDATE
Note Recent Changes to Compliance Regulations 

Michael Beckett, Esq., Research Manager

CANADA: Lobbying Commissioner Karen Shepherd will not seek reappointment when her current term expires at the end of December. Shepherd has been the commissioner since the creation of the position in 2008. The Governor in Council will appoint a new commissioner after consulting with the leader of every recognized party in the Senate and House of Commons. Following the consultation, the Senate and House of Commons must approve the appointment by resolution.

CHICAGO, ILLINOIS: The Chicago Board of Ethics recently submitted two amendments to City Council, potentially affecting lobbyist filing procedures. One amendment would require lobbyists to file all documents electronically in the Electronic Lobbyist Filing (ELF) system. The other amendment would establish enforcement provisions related to the electronic filing requirement. Unless a majority of aldermen vote to disapprove them, the Board of Ethics will implement the changes beginning January 1, 2017. Paper filings will no longer be accepted after December 31, 2016.

RENO, NEVADA: City Council adopted a new lobbying law for the city. The Registration and Regulation of Lobbyists ordinance requires lobbyists to register with the city clerk, to inform the city of their clients, and to wear lobbyist badges when in City Hall. The ordinance also includes civil and criminal penalties for violations. The new law will take effect on January 1, 2017.

SAN FRANCISCO, CALIFORNIA: On November 8, voters overwhelmingly passed a city ballot initiative restricting lobbyist gifts and campaign contributions. Local Ballot Measure T prohibits lobbyists from making any gift to a city officer, prohibits lobbyists from using a third-party to circumvent this restriction, and prohibits city officers from accepting or soliciting such gifts. The gift restriction specifically includes any gift of travel. The measure also requires lobbyists to identify which city agencies they intend to influence and imposes a duty on local lobbyists to amend and update their registration information and monthly reports within five days of any changed circumstances. The initiative also prohibits a lobbyist from making contributions to or bundling contributions for city elected officials or candidates for city elective offices if the lobbyist had been registered to lobby the official’s agency within 90 days of the date any contribution is made. Changes to the city’s lobbying laws become effective January 1, 2018.

SOUTH DAKOTA: State voters passed a ballot issue in favor of lobbying and campaign finance reform. Initiated Measure 22, known as the South Dakota Government Accountability and Anti-Corruption Act, passed by a tally of 52 percent to 48 percent. The measure creates a publicly funded campaign finance system, lowers contribution limits, establishes new gift limits, and creates revolving door restrictions for former state officials. Though approved by the voters, the measure may face constitutional challenges in court.

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 State and Federal Communications' digital encyclopedias for lobbying laws, political contributions, and procurement lobbying and can be found in the client portion of our website.

Summaries of major bills are also included in monthly email updates sent to all clients. The chart below shows the number of bills we are tracking in regard to lobbying laws, political contributions, and procurement lobbying.

Jurisdiction Added to our Website

The number of municipalities and regional governments our research associates track continues to grow. We now cover almost 300 municipalities and local governments. This is part of a continuous effort to better serve the needs of our clients.

In that effort, we have added abridged jurisdictions to our website. These entries, condensed due to the limited number of relevant local laws, provide the core information our clients need for their government relations work.

The new jurisdiction is:

W  E  B  S  I  T  E      T  I  P Our website now has 2017 legislative session and key dates information for all 50 states, the District of Columbia, five U.S. territories, the federal government, and Canada. In the Lobbying Laws publication, the key dates information provides a schedule of all reports and registrations due in 2017. In the Political Contributions publication, the key dates information includes reports due and scheduled elections. Continue to watch the website for updates to the 2016 and 2017 key dates and for the addition of key dates information for city and county jurisdictions.

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. Send your questions to experts@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 email us with questions about your particular company or organization. As always, we will confidentially and directly provide answers or information you need.) Our replies are not legal advice, just our analysis of laws, rules, and regulations.
 

State and Federal Communications, Inc.
Celebrates Employee Anniversaries

Each month at our staff meeting, Elizabeth acknowledges the employment anniversaries of the staff. In November we celebrated James Warner, Esq., Sr. Compliance Associate as he reached eight years of service.   State and Federal Communications, Inc. Scrapbook - November 2016 2016 SGAC LPC Michael Reagan, guest speaker visiting with Elizabeth Z. Bartz. 2016 SGAC LPC Ted Celeste, Elizabeth Z. Bartz, and Christopher Badgley.

Plan to say hello at future events where State and Federal Communications, Inc.
will be attending and/or speaking regarding compliance issues.