Montana Campaign Contribution Limits Reinstated

Alexandra Vernis, J.D.
Research Associate                   

Last month the 9th U.S. Circuit Court of Appeals reinstated Montana’s voter-approved political contribution limits, striking down a district court decision in Lair v. Motl finding the state’s campaign contribution limits unconstitutional. The initial lawsuit filed in 2011 by campaign donors and state political action committees (PACs) claimed the campaign finance laws infringed on First Amendment rights by burdening speech and association. The limits were ruled unconstitutional in 2016 by a federal district judge in Helena who found the limits restricted political speech without being closely drawn to serve an important state interest. 

The 9th Circuit found the contribution limits established by a voter referendum in 1994 to be “both justified and adequately tailored to the state’s interest in combating quid pro quo corruption or its appearance.” The three-judge panel found no actual case of quid pro quo corruption was necessary to prove campaign contributions can be used to influence political action. The decision also notes contributors who have reached the contribution limit have other avenues available such as volunteering services, donating to political parties, and running independent advertising. 

Under the reinstated limits, individual and PAC contributions to a gubernatorial candidate have been reduced to $660 per election. The new limits drop by close to $600 for individuals, while the limit for what a PAC can give is down from $10,610 per election cycle. Direct corporate contributions remain prohibited. The decision affects candidates currently running in local elections, but anyone who has received a campaign contribution under the old limits is not required to return it. The Office of the Commissioner of Political Practices announced its intention to adjust the reinstated contribution limits for inflation before the 2020 elections. 

Plaintiffs have already announced plans to appeal the two-judge majority decision, but are considering whether to ask a full panel of the 9th Circuit to reconsider the case or petition the U.S. Supreme Court.

[The details for this article have been updated on our website in the Montana Contributions section of the Political Contribution Compliance Laws.]

Summary of Changes UPDATE
Note Recent Changes to Compliance Regulations 

Michael Beckett, Esq., Research Manager

CALIFORNIA: Gov. Jerry Brown signed Assembly Bill 867 into law, recasting various provisions of the Political Reform Act regarding the definition of contribution. The law moves the behested payment reporting requirements out of the definition and places those requirements in campaign disclosure sections of the act. Additionally, the law provides specific definitions for terms related to the reporting of behested payments. The law is effective January 1, 2018. 

CANADA: Elections Canada announced several by-elections for the House of Commons to be held on December 11. The federal by-elections will be held for the electoral districts of Battlefords–Lloydminster (Saskatchewan), Bonavista–Burin–Trinity (Newfoundland and Labrador), Scarborough–Agincourt (Ontario), and South Surrey–White Rock (British Columbia) to fill vacancies in the House of Commons. Battlefords–Lloydminster (Saskatchewan) MP Gerry Ritz resigned on August 31 in order to retire from politics. Bonavista–Burin–Trinity (Newfoundland and Labrador) MP Judy Foote resigned in September. Foote has been on leave since April for personal family medical reasons. In August, she had resigned her position as Minister of Public Services and Procurement. The seat for Scarborough–Agincourt (Ontario) became vacant on September 14 when MP Arnold Chan died at the age of 50 of cancer after a three-year battle. South Surrey–White Rock (British Columbia) MP Dianne Watts resigned to run for the provincial Liberal leadership.

FEDERAL: Contributions by federal contractors to federal independent expenditure-only political action committees, also known as super PACs, may violate the federal pay-to-play prohibition. In late September, the Federal Election Commission (FEC) entered into a conciliation agreement with a federal contractor after finding the contractor had violated pay-to-play prohibitions by making contributions to a federal independent expenditure-only political action committee. The FEC fined the contractor, Suffolk Construction Company, $34,000 for making two $100,000 contributions in 2015 to Priorities USA Action, a super PAC supporting former presidential candidate Hillary Clinton. Because the matter was resolved by agreement between the FEC and the contractor, there was no challenge made to the FEC’s fine.

ILLINOIS: Gov. Bruce Rauner signed a bill passed by lawmakers during the fall veto session aimed at curbing sexual harassment within state government. Senate Bill 402 expressly prohibits sexual harassment by lobbyists, provides for a $5,000 fine for violations, and requires lobbyists to take an annual sexual harassment training course. The training course must be completed within 30 days of registration or renewal, beginning January 1, 2018. Additionally, each person and entity required to register must have a written sexual harassment policy by January 1, 2018. Rauner criticized the bill as rushed and needing more work, but conceded it was a step in the right direction. The bill takes effect immediately.

IOWA: The General Assembly has implemented a new lobbyist reporting application for the upcoming 2018 session. A training class for the new application is being offered on several different dates. Interested parties may reserve a seat by emailing helpdesk@legis.iowa.gov or by calling the Help Desk at (515) 281-6506. All trainings will be held in the Miller Building, Room 300, 1112 E Grand, Des Moines, Iowa, 50319. The old system will remain in place until the new system is available in December.

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' online Compliance Laws for Government Relations Professionals. They can be found on a jurisdiction's home page.

Summaries of major bills are also included in the monthly Summary of Changes email update 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.

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In 2017, we have celebrated each staff team member and how long they have worked at State and Federal Communications, Inc. We end the year with our Sr. Compliance Associate, James Warner, Esq. as he celebrates his 9 year anniversary.  He is an exceptional member of our staff.  Congratulations, Jim!

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Elizabeth Z Bartz with Howard Fineman at the SGAC LPC conference in Naples, FL.	Emilia Sykes with Elizabeth Z. Bartz. Are you a KSU Flash?

 

Congratulations to Elizabeth Z. Bartz as you won the 2017 Spirit of Philanthropy award

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