Compliance Notes - Vol. 7, Issue 10

RECENT LOBBYING, ETHICS & CAMPAIGN FINANCE UPDATES

Campaign Finance & Lobbying Compliance

Hawaii: Hawaii Gov. Josh Green signed Senate Bill 2471, now Act 011, into law on May 14, 2026, placing new limits on political spending by corporations and other entities organized or authorized to do business in the state. The law applies to a broad range of entity types, including nonprofits, limited liability companies and limited partnerships. It clarifies that the legal privileges granted to such entities by the state do not include the power to spend money or contribute resources to influence elections or ballot measures. Political action committees will continue to be governed by existing campaign finance laws, but may not accept or spend money received from corporations under the new law. Enforcement authority is granted to the Attorney General and the Director of Commerce and Consumer Affairs, who may impose penalties or bring enforcement actions for violations. (Cate Piper Labas, KHON2)

Missouri: On May 4, 2026, the Springfield City Council voted unanimously to cap individual campaign contributions to city council and mayoral candidates at $2,825 per election cycle, the first such limit in the city. The ordinance limits individual donor contributions but does not restrict the total amount a candidate may raise. The ordinance takes effect 30 days from the vote. (Connor Trett, KY3)

Government Ethics & Transparency

Illinois: The Chicago Board of Ethics fined former mayoral candidate Paul Vallas $214,000 for accepting $202,000 in improper campaign contributions from firms doing business with the city, the largest fine in the board's history. The board voted 5-0 to impose the fine on May 18, 2026, with one member abstaining. Under the city's Government Ethics Ordinance, companies doing business with the city are limited to contributing $1,500 annually to candidates for elected office. The board could have imposed a maximum fine of $618,000 but instead ordered Vallas to pay an amount equal to the improper contributions plus $1,000 per violation. Vallas could have avoided the fine by returning the contributions within 10 days of being notified under the ordinance's safe-harbor provision, but neither he nor his campaign responded to the notices sent in June 2025. This is the second time the board has fined Vallas, he also accepted improper contributions during his 2023 mayoral campaign. Vallas has vowed to appeal, and the board acknowledged the fine is unlikely to be paid, given his campaign committee carried $23,600 in debt as of March 31, 2026. (Heather Cherone, WTTW)

Elections

Montana: Two Republican state legislative candidates have filed complaints alleging that digitally-altered mailers depicting them waving a pride flag and wearing a pronoun button violate Montana's law prohibiting the use of artificial intelligence to produce deepfakes in campaign materials. A federal lawsuit filed in Helena on May 6, 2026, by the political committee behind the mailers, Accountability in State Government, argues the mailers are protected under the First Amendment and that the Montana statute should be struck down. The law, Senate Bill 25, prohibits AI-generated content that appears to a reasonable person to depict a candidate saying or doing something that did not occur, and carries penalties including civil fines and up to two years in prison. The lawsuit argues that the law criminalizes protected political speech, is overly broad, and discriminates against independent political speakers by exempting institutional media. The complaint seeks a declaration that the statute violates the First and Fourteenth Amendments. (Micah Drew, Daily Montanan)

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.