Compliance Notes - Vol. 6, Issue 21
RECENT LOBBYING, ETHICS & CAMPAIGN FINANCE UPDATES
Campaign Finance & Lobbying Compliance
California: Gov. Gavin Newsom signed AB 1167, a bill prohibiting California utilities from charging customers for lobbying and advertising expenses. He vetoed a companion measure expanding oversight of electric and gas corporations, citing a drafting error. Authored by Assemblymembers Marc Berman and Dawn Addis, AB 1167 also requires utilities to disclose whether public messages are funded by ratepayers or shareholders and directs the CPUC to penalize violations. Newsom’s action marks a win for energy affordability advocates and a setback for investor-owned utilities, which opposed both bills. AB 1167 takes effect Jan. 1, 2026. (Noah Baustin and Alex Nieves, POLITICO Pro)
California: Gov. Gavin Newsom signed two bills aimed at reducing the influence of money in California elections. Senate Bill 398 makes it a crime to offer money, prizes or other incentives to influence voting or registration, while Senate Bill 42 places a measure on the November 2026 ballot to let voters decide whether to lift the state’s ban on public campaign financing. Sen. Tom Umberg, who authored both bills, said they protect voters from “manipulative schemes” and empower communities to decide how campaigns are financed. Newsom’s office said the laws are intended to prevent billionaires from staging “sweepstakes” to buy elections and keep “dirty money” out of California’s democracy. (Adam Robinson, ABC7 KRCR)
New York: A Staten Island man was convicted of federal charges for orchestrating an illegal straw donation scheme tied to a 2019 Trump reelection fundraiser at Mar-a-Lago. Xinyue “Daniel” Lou, 59, was found guilty of conspiracy to defraud the United States and making contributions in the names of others after reimbursing donors to conceal the true source of more than $39,000 in campaign contributions. Prosecutors said Lou, a Chinese national ineligible to donate, arranged to receive VIP access to the event if he raised $25,000 and used cash reimbursements to bypass federal election laws. He faces up to 10 years in prison at sentencing on February 24, 2026. (Scott R. Axelrod, Staten Island Advance)
Government Ethics & Transparency
Hawaii: Hawaii’s Campaign Spending Commission voted to revive four reform bills that were rejected by the 2025 Legislature, including measures to expand partial public campaign financing, ban campaign donations during legislative sessions and close a pay-to-play loophole allowing contributions from people tied to government contractors and grantees. The commission’s revised draft would restrict the prohibition to construction contracts of more than $250,000, goods and services contracts of more than $100,000 and grants of more than $100,000. Commissioners also backed new proposals to require electronic filing of campaign forms by 2028 and to raise staff salaries to match other ethics and compliance agencies. The commission plans to reintroduce the bills when the Legislature reconvenes in January 2026. (Richard Wiens, Honolulu Civil Beat)
New York: New York City’s Conflicts of Interest Board is considering stricter travel disclosure rules for public officials amid scrutiny of Mayor Eric Adams’ overseas trips. The proposal would lower the agency reporting threshold to $1,000 — matching individual disclosure requirements — while clarifying travel reimbursements count as gifts and requiring agency heads to approve travel in writing. Ethics advocates say the updates would improve transparency but fall short of addressing deeper concerns about foreign influence and self-funded travel. The discussion comes as Adams’ international trips, including to Albania and Qatar, have drawn media and public attention over unclear funding sources and limited disclosure. (Joe Anuta, POLITICO)
We read the news, cut through the noise and provide you the notes.
Compliance Notes from Nossaman’s Government Relations & Regulation Group is a periodic digest of the headlines, statutory and regulatory changes and court cases involving campaign finance, lobbying compliance, election law and government ethics issues at the federal, state and local level. Our attorneys, policy advisors and compliance consultants are available to discuss any questions or how specific issues may impact your business. If there is a particular subject or jurisdiction you’d like to see covered, please let us know.
