Compliance Notes - Vol. 6, Issue 5
RECENT LOBBYING, ETHICS & CAMPAIGN FINANCE UPDATES
Campaign Finance & Lobbying Compliance
National Democrats filed suit Friday, February 28, 2025, to stave off what they say could be President Donald Trump’s destruction of impartial campaign finance regulation by the Federal Election Commission (FEC). The Democratic National Committee and the campaign arms for congressional Democrats say Trump’s executive order (EO) taking control of all independent agencies in the Executive Branch means the FEC could now be weaponized against Trump’s political adversaries in ways it was designed to prevent in the aftermath of Watergate. In particular, Democrats pinpoint a section in the executive order requiring all executive branch officials to defer to Trump’s interpretation of the law rather than any judgments they may reach on their own. Democrats are asking a judge to declare that the FEC’s independence from the president is constitutionally permitted and to bar the Trump White House from attempting to apply his executive order to the agency. (Kyle Cheney, POLITICO, EXECUTIVE ORDER 14215 & CIV. NO. 25-587)
Florida: An attorney representing a Florida mayor and county commissioner asked an 11th Circuit panel on Wednesday, February 26, 2025, to strike down part of a state constitutional amendment restricting lobbying by elected officials. The amendment, passed by 79% of voters in 2018, prohibits elected officials from engaging in paid lobbying of any government bodies “on issues of policy, appropriations or procurement” during their terms in office. Scott Hiaasen, arguing on behalf of Miami-Dade County Commissioner Rene Garcia and South Miami Mayor Javier Fernandez, said the restrictions on these officials’ speech needs to be much more narrowly tailored. The State argued it is in the government’s interest to prevent corruption, so this restriction overrides free speech concerns. The judges did not indicate when they would reach a decision in the case. (Alex Pickett, Courthouse News Service)
Government Ethics & Transparency
California: Law enforcement officials searched Huntington Park City Hall and the homes of local leaders during the morning of Wednesday, February 26, 2025, as part of a corruption investigation involving the alleged misuse of public funds, according to the Los Angeles County District Attorney. Warrants were served at 11 locations, including the homes of Mayor Karina Macias and City Councilmember Eddie Martinez. L.A. County Dist. Atty. Nathan Hochman said in a press release that the investigation, dubbed “Operation Dirty Pond,” began in November 2022 and “focuses on the potential misuse of millions of dollars in public funds allocated for the construction of an aquatic center” in Huntington Park’s Salt Lake Park. No arrests have been made, a spokesperson for the district attorney’s office confirmed. (Andrew Lopez, Boyle Heights Beat)
Legislation & Ballot Measures
Arkansas: In a reversal, the Arkansas Senate allowed two proposed changes to the state’s citizen-led ballot measure process to advance to the House on February 25, 2025, after failing to pass the bills’ emergency clauses earlier this month. Sen. Kim Hammer (R-Benton) is sponsoring a slew of legislation, including Senate Bills 209 and 210, that he has said would deter fraudulent behavior and protect the integrity of the signature collection process for proposed ballot measures. Senate Bill 209 would disqualify signatures collected by canvassers if the secretary of state finds “by a preponderance of evidence” that they violated state law collecting the signatures. Senate Bill 210 would require potential signers to read the ballot title of a petition or have it read aloud to them in the presence of a canvasser. It would also make it a misdemeanor for a canvasser to accept a signature from people who have not read the ballot title or had it read aloud to them in the presence of a canvasser. All six Senate Democrats opposed SB 209 and SB 210. The House Committee on State Agencies and Governmental Affairs will be next to hear the bills. Sen. Hammer announced in January that he will run next year for Secretary of State, the executive branch office that oversees elections. (Tess Vrbin, Arkansas Advocate)
Iowa: Lawmakers in the Iowa House gave initial approval Monday, March 3, 2025, to a bill that would strip state aid from public libraries that are “dues-paying members” of a state or national nonprofit organization that lobbies government, such as the Iowa Library Association or American Library Association. House File 284 would change library eligibility for Enrich Iowa funds provided through the State Library of Iowa to exclude nonprofit organization members that “promotes federal and state legislation related to libraries and engages in advocacy efforts at the federal, state or local level.” Supporters of the bill focused on concerns about the content of certain books in public libraries and the perceived political agenda of the American Library Association and Iowa Library Association during a subcommittee meeting on Monday. Opponents argued that the state and national associations provide significant support to public libraries, such as continuing education for librarians, assistance in creating programs for people with dementia, and aid in adopting the state-preferred literacy model for children. The bill voted out of the subcommittee, moves next to the House Education Committee. (Kathie Obradovich, Iowa Capital Dispatch & House File 284)
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.
