Compliance Notes - Vol. 7, Issue 14
RECENT LOBBYING, ETHICS & CAMPAIGN FINANCE UPDATES
Campaign Finance & Lobbying Compliance
Alaska: On July 9, 2026, Governor Mike Dunleavy vetoed House Bill 16, which would have reinstated limits on political contributions, allowing voters to decide the issue through an identical ballot measure already set for the August 2026 primary election. The veto avoids canceling the ballot measure vote under the Alaska Constitution and sidesteps an effective-date complication that could have put new limits into effect mid-election rather than after the 2026 cycle. If voters approve the measure, individuals would be capped at $2,000 per candidate per two-year cycle, $4,000 for gubernatorial tickets and $5,000 to a political party or group. The contribution limit for groups would be $4,000 per candidate or $8,000 for gubernatorial tickets. (James Brooks, Alaska Beacon)
Arizona: In 4-3 decision issued in June 2026, the Arizona Supreme Court largely rejected a state constitutional challenge to Proposition 211, the voter-approved Voters’ Right to Know Act, which requires organizations that spend significant amounts on election-related communications to disclose major donors and trace funds to their original source. The law requires organizations that spend more than $50,000 on a statewide race or $25,000 on other races to disclose donors of $5,000 or more. It also requires covered organizations to trace contributions back to their original source to prevent wealthy “dark money” donors from masking their identities through intermediary nonprofits. Chief Justice Ann Scott Timmer wrote that the plaintiffs had not shown the disclosure law was facially unconstitutional or that the law violated privacy rights. The court did allow one narrower free speech claim to proceed, giving the challengers a chance to argue in trial court that donor disclosure would discourage contributions because of potential harassment or retaliation. Related challenges to Proposition 211 remain pending in state and federal court. (Bob Christie, Arizona Capitol Times)
Government Ethics & Transparency
Georgia: Frontline Policy, an evangelical conservative lobbying group, was fined $17,500 by the Georgia State Ethics Commission over unregistered lobbying and failures to file required disclosure reports, including more than $380,000 in unreported contributions tied to the 2024 election cycle. The executive director of the ethics commission warned repeat violations could result in suspension of the group’s lobbying license. Frontline founder Cole Muzio said the violations were unintentional clerical errors that have been corrected. (Ross Williams, Georgia Recorder)
Hawaii: On July 8, 2026, The Hawaii Campaign Spending Commission voted 3-0 to refer its civil complaint against Lieutenant Governor Sylvia Luke’s campaign to the Department of the Attorney General for further investigation and potential criminal prosecution, opting against an alternative $28,300 fine. The complaint alleges eight counts of filing false reports and four counts of mishandling campaign funds during the 2021 to 2022 election cycle, including allegations that individuals other than the campaign treasurer handled funds and wrote more than 200 checks. Commission General Counsel Eunice Park said the issues were not minor technical errors, citing Sylvia Luke’s experience and the campaign’s opportunity to correct the violations. Luke is currently on unpaid leave and has withdrawn her re‑election bid. (Aalii Dukelow, Hawaii News Now)
Illinois: On July 7, 2026, A federal grand jury indicted Illinois State Representative Carol Ammons on charges alleging she orchestrated a kickback scheme involving her campaign committee and state grant-funded nonprofits. Prosecutors allege Ammons routed payments through her daughter, including campaign payments for unperformed work and nonprofit compensation tied to grants Ammons helped secure, yielding more than $100,000 in benefits from 2017 to about 2023. The indictment also alleges Ammons made a false statement to the Federal Bureau of Investigation in May 2024 about her knowledge of grant-funded payments to her daughter, and that Ammons and her husband, Champaign County Clerk Aaron Ammons, later engaged in alleged obstruction of justice involving at least one potential witness. (Hannah Meisel, Capitol News Illinois)
Michigan: Prosecutors alleged Heather Lombardini, former head of Michigan Citizens for Fiscal Responsibility, encouraged donors to give to the nonprofit with the intent of moving the money to a ballot initiative campaign. After Lombardini pleaded guilty to the misdemeanor of using a computer to commit a crime, her forgery and uttering-and-publishing charges were dismissed. The case was described as part of a broader effort by Attorney General Dana Nessel to deter abuse of nonprofit political fundraising vehicles amid gaps in Michigan’s campaign finance regulation of 501(c)(4) accounts. (Ben Solis, Michigan Advance)
Ballot Measures & Elections
This July, 2026, President Trump removed all remaining members of the U.S. Election Assistance Commission, firing Democrat Commissioners Thomas Hicks and Benjamin Hovland while Republican Commissioner Christy McCormick was allegedly allowed to resign. Because all commissioner positions are now vacant, the agency cannot take official action until new commissioners are nominated by the president and confirmed by the Senate. The White House cited the Supreme Court’s recent decision in Trump v. Slaughter, which held that the president may remove leaders of independent federal agencies, and stated that the removals were part of the administration's efforts to secure elections. (Jessica Huseman, Votebeat)
Missouri: On August 4, 2026, Missouri voters will decide whether to adopt Amendment 4, a proposed constitutional amendment that would change the approval standard for future citizen-led constitutional amendments. Existing law requires constitutional amendments placed on the ballot by citizen-led initiatives to pass by a simple majority. Amendment 4 would require citizen-led amendments to receive majority support in each of Missouri’s eight congressional districts in addition to the simple majority. Supporters say the proposal would protect the Missouri Constitution against out-of-state influence while opponents warn the amendment would weaken the initiative process by allowing one district to block a measure with widespread support. (Laura Brown, West Newsmagazine)
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.
