Compliance Notes - Vol. 7, Issue 1

RECENT LOBBYING, ETHICS & CAMPAIGN FINANCE UPDATES

Campaign Finance & Lobbying Compliance

Connecticut: Connecticut's State Elections Enforcement Commission (SEEC) is weighing its first interpretation of a 2024 law banning foreign nationals from making political contributions or expenditures, after a lobbyist petitioned for guidance on whether U.S. citizens working as in-house lobbyists for subsidiaries of foreign-owned companies may make personal campaign contributions.SEEC staff said the request raises a question of first impression under a stricter-than-federal statute that explicitly applies to state and local referenda, an area drawing increased national scrutiny. Commissioners have directed staff to draft a proposed declaratory ruling by March 4, 2026, with public comment to follow and a final decision expected in April 2026. The law, passed unanimously in 2024, was designed to prevent foreign influence in elections and ballot questions, carries civil and criminal penalties for violations and could set precedent for other states adopting similar restrictions. (Paul Hughes, Connecticut Post)

Government Ethics & Transparency

Arkansas: The Arkansas Supreme Court ruled that the Arkansas legislature may amend or repeal voter-initiated constitutional amendments by a two-thirds vote, overturning decades of precedent that had protected such measures from legislative alteration. In State of Arkansas v. Good Day Farm Arkansas, the court set aside its 1951 Edgmon decision and held that the plain language of Amendment 7 permits lawmakers to change citizen-initiated amendments in the same manner as initiated acts, while leaving legislatively referred amendments untouched. The ruling arose from a challenge to legislative changes to the voter-approved 2016 medical marijuana amendment and clears the way for lawmakers to modify or reverse voter-passed constitutional amendments after enactment, prompting renewed efforts by advocacy groups to place measures on the 2026 ballot that would bar legislative interference with voter-initiated amendments. (Matt Campbell & Benjamin Hardy, Arkansas Times)

Massachusetts: Massachusetts lawmakers advanced legislation that would require disclosure of significant spending to influence town meeting votes, with the Massachusetts House giving initial approval to H. 806 on Thursday. The bill would mandate reporting by any person or group that spends or commits at least $1,000 to influence a warrant article at a town meeting, requiring filings with local clerks detailing expenditures and funding sources. Sponsored by Sen. Julian Cyr, Sen. Dylan Fernandes, and Reps. Thomas Moakley and Simon Cataldo, the measure is driven in part by concerns over undisclosed spending tied to housing and short-term rental debates on Cape Cod and the Islands. A Senate version cleared the Election Laws Committee in November 2025 and is pending before Massachusetts Senate Ways and Means. Supporters say the bill closes a gap in state campaign finance law by extending transparency requirements to local governance, while violations would be punishable by up to one year in jail, a $1,000 fine, or both. (Olivia Ray, WWLP-22News)

New York: A federal judge declared a mistrial in the corruption case against former New York governors' aide Linda Sun and her husband, Chris Hu, after a Brooklyn jury said it was hopelessly deadlocked on all 19 counts. Prosecutors alleged Sun used senior roles in the administrations of Govs. Kathy Hochul and Andrew Cuomo to advance Chinese government interests and steer pandemic-era medical supply contracts in exchange for millions in benefits, while Hu was accused of laundering and concealing the proceeds. Sun faced charges including acting as an unregistered agent of China, visa fraud and money laundering; Hu was charged with money laundering, bank fraud and tax evasion, with both also charged with conspiracy and wire fraud. After the jury foreperson said jurors' positions were firmly held, U.S. District Judge Brian Cogan declared a mistrial, and prosecutors said they intend to retry the case. (Philip Marcelo, AP 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.