Compliance Notes - Vol. 6, Issue 25
RECENT LOBBYING, ETHICS & CAMPAIGN FINANCE UPDATES
Campaign Finance & Lobbying Compliance
The Supreme Court heard arguments on whether federal limits on coordinated spending between political parties and their candidates should be struck down. The Republican National Committee’s arms for House and Senate races, joined by Vice President JD Vance, are asking the court to overturn a 2001 decision upholding the limits, arguing they are inconsistent with Citizens United and unfairly disadvantage parties compared with outside groups that can spend unlimited amounts. Current coordinated spending limits vary by race, ranging from about $127,200 in some contests to nearly $4 million in California Senate races. Several conservative justices, including Samuel Alito, Brett Kavanaugh and Clarence Thomas, suggested the restrictions unfairly weaken political parties compared with outside groups allowed to spend unlimited sums under Citizens United. By contrast, the court’s three liberal justices defended Congress’s authority to regulate party spending to prevent corruption. Chief Justice John Roberts and Justices Amy Coney Barrett and Neil Gorsuch did not clearly signal their positions, and the justices showed little interest in dismissing the case on procedural grounds. (Mark Sherman, AP News)
Nevada: Nevada’s Legislative Counsel Bureau declined to impose sanctions on former Gov. Brian Sandoval, consultant Jeremy Aguero and Clark County Education Association leader John Vellardita for failing to timely register as lobbyists during the November special session. Acting Director Roger Wilkerson concluded that their late registrations satisfied the Lobbying Act’s “primary public purpose” and declined to issue penalties. The Nevada State Education Association, which filed complaints related to lobbying over legislation including a proposal to expand the state’s film tax credit, argues the decision effectively renders the law’s two-day registration requirement unenforceable. The group also questions whether Wilkerson complied with statutory duties to refer suspected violations to the Legislative Commission and the attorney general, neither of which confirmed receiving a referral. (Dana Gentry, Nevada Current)
New Mexico: A federal judge extended a block on Albuquerque’s political committee rules, converting a temporary restraining order into a preliminary injunction while a First Amendment challenge proceeds. U.S. District Judge James O. Browning ruled that the city’s registration and reporting requirements for “measure finance committees,” which apply to groups spending more than $250 on campaign advocacy, likely impose unconstitutional burdens on speech, particularly the mandates to disclose top five and secondary donors. While Judge Browning allowed the city’s general disclaimer requirements to stand under Citizens United, he found the donor disclosure rules were not narrowly tailored and caused irreparable harm to the plaintiffs’ speech rights, outweighing any harm to the city. (Bernie Pazanowski, Bloomberg Government)
Government Ethics & Transparency
California: A former Compton city councilmember has pleaded guilty to federal bribery and tax charges stemming from a scheme to secure commercial marijuana permits. Isaac Galvan, 38, admitted to facilitating roughly $70,000 in bribes to then–Baldwin Park City Councilman Ricardo Pacheco between 2017 and 2018 in exchange for votes approving marijuana permits, including for W&F International Corporation, while Galvan was serving on the Compton City Council. Prosecutors said Galvan also failed to file federal tax returns from 2017 to 2020, concealed income through a shell company and caused more than $115,000 in tax losses. Pacheco previously pleaded guilty to an unrelated federal bribery charge and is cooperating, while the owner of W&F has pleaded not guilty and is set for trial in February 2026. Galvan, who later lost his council seat after a court overturned a 2021 election he narrowly won due to illegal votes, remains free on bond and is scheduled to be sentenced on June 8, 2026. (Helen Jeong, NBC Los Angeles)
Pennsylvania: The Pennsylvania Ethics Commission concluded that Jeff Haste did not violate the state’s revolving-door ethics law by receiving a $60,000 county contract to serve as liaison to the NRA’s Great American Outdoor Show within a year of leaving office. The commission found the restriction did not apply because Haste had been reappointed to a county tax assessment board before the contract was finalized, making him a current public official at the time. State law bars former officials from contracting with their prior agency within one year, but the commission concluded the restriction did not apply because Haste had regained public-official status and was representing the county, not the NRA. The ruling followed an investigation triggered by reporting that the liaison role was created at the request of Haste’s former colleagues and later canceled in 2024. Ethics experts said the decision reflects a straightforward reading of the statute but exposes a potential loophole that could warrant legislative review of the Ethics Act. (Juliette Rihl, PennLive/The Patriot-News)
Legislation & Elections
New York: New York Democrats are backing legislation that would curb corporate election spending by redefining the powers granted to corporations under state law to exclude election- and ballot-related activity. Sponsored by Assemblymember Micah Lasher, the bill is framed as a workaround to Citizens United and would bar corporations, LLCs and foreign entities doing business in New York from spending on federal, state or local elections, while allowing registered political committees to continue participating. Supporters argue the approach focuses on state-defined corporate privileges rather than speech and could withstand legal challenges, while critics warn it is likely unconstitutional and say stronger disclosure laws would be a more viable response to rising super PAC spending. (Raga Justin, Bloomberg Government)
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.
