Compliance Notes - Vol. 6, Issue 23

RECENT LOBBYING, ETHICS & CAMPAIGN FINANCE UPDATES

Campaign Finance & Lobbying Compliance

The United States Supreme Court will decide whether states can count mail-in ballots that arrive after Election Day, a ruling that could affect election laws in about 30 states. The case stems from a challenge to Mississippi's law allowing ballots postmarked by Election Day to be counted if they arrive within five business days of election day. The 5th Circuit Court of Appeals struck down that law last year, finding it conflicted with federal statutes setting a single nationwide Election Day. Mississippi Attorney General Lynn Fitch warned the ruling could cause "chaos" in the 2026 elections by prompting similar challenges nationwide. The Court is expected to hear arguments early in 2026 and issue a decision by June 2026. (Josh Gerstein, POLITICO)

Montana: Montana Attorney General Austin Knudsen rejected a ballot initiative seeking to bar corporations from spending money on elections, ruling that it fails to meet state legal standards for clarity and single-subject requirements. The proposed Ballot Measure No. 4, backed by former Commissioner of Political Practices Jeff Mangan and his Transparent Election Initiative, would amend the state constitution to prevent "artificial persons" from spending money or anything of value on elections or ballot issues. Knudsen's office said the proposal was too broad and would affect several areas of law, while Mangan argued the review went beyond its intended purpose and misrepresented the measure. The group plans to appeal the decision to the Montana Supreme Court. (Micah Drew, Daily Montanan)

Government Ethics & Transparency

Colorado: Colorado Common Cause filed ethics complaints against more than a dozen Democrat state lawmakers, alleging they violated Colorado's constitutional gift ban by attending an October 2025 retreat in Vail where lodging, food and drinks were paid for by the 501(c)(4) One Main Street Colorado. The retreat, hosted by the Colorado Opportunity Caucus, brought together moderate Democrats and lobbyists at a luxury hotel. The complaints argue that lawmakers could not ensure the nonprofit met a legal requirement that no more than 5% of its funding come from for-profit sources. Caucus chair Sen. Lindsey Daugherty said the group acted under legal guidance and called the allegations "political theater." Common Cause said it plans to file complaints against all but one attendee and may also target Rep. Shannon Bird, alleging she helped organize the event. (Taylor Dolven and Jesse Paul, The Colorado Sun)

Illinois: Chicago Inspector General Deborah Witzburg accused Mayor Brandon Johnson of twice blocking unannounced inspections for gifts he accepted on the city's behalf without properly reporting them, in violation of Chicago's ethics ordinance. Witzburg said Johnson's staff delayed creating a required "gift room" until after her first report revealed unlogged items such as designer handbags, cufflinks and shoes, and later refused inspectors access to verify whether gifts were being stored elsewhere. The mayor's office denied wrongdoing, saying it has since created a larger, public-access space and begun posting gifts online, while dismissing the inspector general's claims as overblown. Witzburg's report warned that Johnson's actions undermined transparency and obstructed oversight required by law. (Heather Cherone, WTTW News)

Michigan: A complaint filed with Michigan Secretary of State Jocelyn Benson alleges that the Michigan Economic Development Foundation (MEDF), a business-backed nonprofit that funds Gov. Gretchen Whitmer's trade missions, acted as an unregistered lobbyist. Filed by longtime political attorney Bob LaBrant, the complaint says MEDF used donor contributions from corporations with state interests to pay for travel, lodging and events that gave contributors access to Whitmer and other officials, including MEDC CEO Quentin Messer Jr. The filing follows reports many MEDF donors also received state incentives and the foundation spent more than $450,000 on "investment missions" in 2024. LaBrant urged the Attorney General's Office to investigate whether MEDF's spending meets the state's lobbying threshold and violates disclosure laws. (Craig Mauger, The Detroit 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.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.