Compliance Notes - Vol. 7, Issue 12
RECENT LOBBYING, ETHICS & CAMPAIGN FINANCE UPDATES
Campaign Finance & Lobbying Compliance
ActBlue CEO Regina Wallace-Jones invoked her Fifth Amendment right and refused to answer questions during testimony before the House Administration Committee amid allegations that the Democratic fundraising platform facilitated foreign campaign donations. Wallace-Jones, who previewed her stance in a Washington Post op-ed, said invoking the Fifth is not an admission of guilt and characterized the probe as political harassment rather than legitimate oversight, arguing Congress lacks constitutional authority to conduct criminal investigations. Democrats echoed claims of political retribution and called for scrutiny of WinRed, with ranking members of three House committees sending a letter seeking testimony from WinRed CEO Ryan Lyk. The hearing comes as ActBlue faces an April 2026 lawsuit by Texas Attorney General Ken Paxton seeking to block contributions via gift cards and prepaid debit cards, which ActBlue challenged in a May 2026 countersuit as retaliatory and violative of First Amendment protections. (Ashleigh Fields, The Hill)
Hawaii: The Grassroot Institute of Hawaii filed a federal lawsuit challenging Act 11, a newly enacted law that prohibits corporations, nonprofit corporations, LLCs and other entities from spending money to influence elections or ballot measures. The suit, filed June 5, 2026, alleges the law violates the First Amendment’s guarantees of free speech and free association and is unconstitutionally vague, creating uncertainty between permissible advocacy and prohibited election activity. Act 11 has been promoted as a state-level response to the U.S. Supreme Court’s 2010 Citizens United decision and the rise of Super PAC spending, though supporters contend it will withstand judicial review because its scope is limited to the Hawaii Constitution’s provisions governing the powers granted to state-created entities. The lawsuit seeks declaratory and injunctive relief preventing enforcement of Act 11. (Michael Tsai, Spectrum News)
Pennsylvania: The Pennsylvania House of Representatives passed House Bill 497 on June 9, 2026, advancing legislation that would restrict political spending by corporations with significant foreign ownership. The bill would prohibit corporations that are at least 1% owned by a single foreign investor or at least 5% owned collectively by multiple foreign investors from spending money to influence Pennsylvania elections. Supporters say the measure is intended to close a loophole in federal law that restricts foreign nationals from election spending but does not prevent foreign-owned corporations from using corporate funds to influence state and local elections. The bill follows similar measures enacted in Seattle, WA and San Jose, CA and will move to the Pennsylvania Senate for consideration. (Free Speech For People)
Government Ethics & Transparency
Louisiana: The Louisiana Legislature unanimously passed House Bill 250 that could allow state Representative Steven Jackson to avoid a $1,000 ethics fine tied to a late financial disclosure during his 2023 campaign. Jackson was required to file the disclosure when he ran for the Louisiana House of Representatives in August 2023, but he did not submit it until January 2026 after the ethics board threatened to increase the fine. Jackson said he was unaware of the filing requirement because he had already disclosed the information as a Caddo Parish commissioner. In 2024, Jackson sponsored and helped pass a law creating an exemption from duplicate personal financial disclosure filings for candidates who have already submitted the same filings as elected officials. House Bill 250 changes the effective date of the 2024 law from Aug. 1, 2024, to Jan. 1, 2023. The Louisiana Ethics Administrator said the retroactive change could potentially affect the status of Jackson’s outstanding penalty. The bill now awaits action by Governor Jeff Landry. (Julie O’Donoghue, Louisiana Illuminator)
Oklahoma: Oklahoma’s Ethics Commission is considering new regulations for AI-generated political advertisements after the issue was brought to its attention by voters and officeholders who shared examples of AI-driven campaign content. At a recent special meeting, the commission began drafting potential regulations, focusing on whether voters can distinguish between real and synthetic media and noting that current ethics rules do not address AI use in elections. Commission officials indicated they are likely to prioritize disclosure and transparency requirements rather than restricting content, citing legal concerns raised in other states. Any proposed rules would be subject to public input and legislative approval. The issue has drawn attention from state leaders, including Governor Kevin Stitt. Similar legislation failed earlier this year, leaving uncertainty about future action as campaigns and political committees continue to use AI-generated ads. (Lionel Ramos, KOSU)
Ballot Measures & Elections
Ohio: Ohio voters will decide whether the state’s voter ID requirement becomes part of the state constitution after lawmakers approved Senate Joint Resolution 10 for the November 2026 ballot. If passed, the resolution would not significantly impact election procedures in Ohio as state law already requires voters to show identification. President Trump expressed strong support for the proposal and urged House Republicans to pass it after advancing in the Senate. Supporters said voter ID already has broad public backing and argued that placing it in the constitution would protect the requirement from future political shifts. Critics said the effort is a waste of resources given existing law and described it as “political theater” in a competitive election year. Some also criticized the proposal for not requiring voter ID for absentee ballots and for not enshrining protections like free state-issued IDs or a grace period to present valid ID after voting. A simple majority of Ohio voters will determine whether the amendment is adopted. (Avery Kreemer, Dayton Daily News)
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.
