Compliance Notes - Vol. 7, Issue 11
RECENT LOBBYING, ETHICS & CAMPAIGN FINANCE UPDATES
Campaign Finance & Lobbying Compliance
Maine: The Maine Ethics Commission voted unanimously on May 27 to circulate an advisory statement warning candidates that publishing messaging and instructions for supportive PACs on their websites, a tactic known as "red boxing," may constitute an illegal campaign contribution under state law. The advisory states that if a PAC engages in advertising in response to red-boxed instructions, the candidate may have received a contribution exceeding legal limits even without direct private communication with the PAC. The commission's approach is more stringent than the Federal Election Commission's, which holds that a public website post does not constitute a request or suggestion that results in a contribution. The commission acknowledged the guidance carries litigation risk, particularly around First Amendment concerns, and agreed to look into whether a legislative resolution would be appropriate. (Lauren McCauley, Maine Morning Star)
Government Ethics & Transparency
North Carolina: A North Carolina search warrant released on May 18 adds detail to allegations that lobbyists illegally arranged a 2024 "educational" bourbon distillery tour in Kentucky. According to the allegations, North Carolina lawmakers who attended received gifts in violation of state law, resulting in criminal charges against four lobbyists. Investigators are now examining a 2022 trip they believe served as a model for the 2024 trip and have obtained communications indicating that alcohol industry companies, including Diageo and Sazerac, helped fund the 2022 tour. These companies also briefed lawmakers on policy priorities such as Sunday liquor sales and expanding the availability of premade cocktails in the state, which are now being debated in the state legislature. The warrant identifies additional participants, including Sarah Newby of the North Carolina Republican Party, as helping arrange the 2024 trip as a private contractor. No additional charges have been filed. (Will Doran, WRAL)
Ballot Measures & Elections
California: Governor Gavin Newsom signed SB 73, a bill aimed at protecting California elections from federal interference, saying it responds to concerns about potential efforts to disrupt voting and ballot handling. The law bars unauthorized access to or seizure of voter rolls, limits law enforcement interference with election workers, directs the California Department of Justice to issue guidance for election officials facing such interference and increases protections against the illegal removal of voted ballots. Supporters said the measure was prompted in part by a reported ballot seizure incident in Riverside County. (Josh Haskell, ABC7)
Michigan: A Michigan ballot initiative campaign submitted more than 562,000 petition signatures to the Secretary of State's office on May 28, seeking to place a measure on the ballot banning corporate political contributions and tightening disclosure requirements. The initiative, led by Michiganders for Money Out of Politics, would ban contributions from corporations including utilities and insurance companies. It would also tighten disclosure requirements targeting 501(c)(4) organizations used to obscure the sources of political contributions. The Board of State Canvassers must approve the petitions before the initiative can advance to the ballot. (WILX News 10)
New Hampshire: A federal judge struck down New Hampshire’s proof-of-citizenship voter registration law on May 28, ruling that it placed an unconstitutional burden on eligible voters and ordering the state to stop enforcing it immediately ahead of the 2026 elections. Judge Samantha Elliott found the law would especially burden groups less likely to have easy access to citizenship documents, including college students, married individuals who changed their names and voters born out of state. The ruling leaves in place requirements that new voters show proof of identity, age and domicile, but restores registration without citizenship documents. A spokesperson from the Attorney General’s office said they plan to appeal. (Ethan DeWitt, New Hampshire Bulletin)
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.
