ARTICLE
19 May 2025

Compliance Notes - Vol. 6, Issue 10

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Nossaman LLP

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The Federal Election Commission (FEC) concluded in Advisory Opinion 2025-07 that the Libertarian Party organizations in Idaho, Maine, Maryland and Vermont qualify as state party committees...
United States Government, Public Sector

RECENT LOBBYING, ETHICS & CAMPAIGN FINANCE UPDATES

Campaign Finance & Lobbying Compliance

The Federal Election Commission (FEC) concluded in Advisory Opinion 2025-07 that the Libertarian Party organizations in Idaho, Maine, Maryland and Vermont qualify as state party committees under the Federal Election Campaign Act. The FEC found that each group is an officially chartered affiliate of the Libertarian National Committee and is responsible for the party's day-to-day operations at the state level. The determination was based on the national party's status as a political party and the Requestors' integration into its official structure. (FEC Record: Advisory Opinions)

New York: New York City mayoral candidate Andrew Cuomo was penalized $622,056 on May 6, 2025, for violating campaign finance rules by improperly coordinating with the super PAC Fix the City. The city's Campaign Finance Board cited a page on Cuomo's campaign website containing polling data and strategic messaging as a prohibited form of "red-boxing," barred under local law. The city's Campaign Finance Board announced its decision to withhold the funds, pending the outcome of its investigation, at a hearing on May 12, where Cuomo was also awarded $1.5 million in public matching funds. A complaint from the mayoral candidate and state Sen. Zellnor Myrie prompted the inquiry. Cuomo spokesperson Rich Azzopardi said the campaign acted lawfully and intends to challenge the board's ruling. (Brigid Bergin, Gothamist)

Government Ethics & Transparency

Michigan: Michigan lawmakers heard testimony May 7 on proposed rules that would stop elected officials from circumventing state prohibitions on accepting gifts from lobbyists. Michigan law bars elected officials from accepting gifts, like sports tickets or flights, if they are valued above $79, the adjusted value for 2025. There are concerns that officials have been flouting those restrictions by saying they have reimbursed the excess over the legal maximum to appear compliant. However, there is no guarantee that those elected officials eventually reimburse the difference. The proposed rules would ban public officials from reimbursing lobbyists in-whole or in-part for the value of a gift that exceeds the maximum allowed value. Supporters argue that the current system undermines public trust and allows undue influence. The legislation is part of broader efforts to enhance transparency and accountability in Michigan's government. (Anna Liz Nichols, Michigan Advance)

Ohio: A federal appeals court upheld the racketeering convictions of former Ohio House Speaker Larry Householder and an ex-lobbyist on May 13 in a $60 million bribery scandal described as the largest corruption scheme in state history. The Sixth Circuit U.S. Court of Appeals unanimously rejected all claims brought by both men, affirming Householder's 20-year sentence and Borges' five-year sentence. The three-judge panel rejected arguments of judicial bias, faulty jury instructions and insufficient evidence. Borges' appeal raised unresolved legal questions about honest services fraud, which Circuit Judge Amul Thapar noted may merit future Supreme Court review. (Julie Carr Smyth, Associated Press)

Legislation & Ballot Measures

Louisiana: As ethics charges continue to linger over Gov. Jeff Landry, the Louisiana House voted 96-0 on May 5, 2025, to pass legislation overhauling the state's ethics investigation process. House Bill 674, sponsored by Rep. Beau Beaullieu (R-New Iberia), would give public officials and government employees more opportunities to contest ethics complaints and delay proceedings. The 30-page bill was drafted with help from Stephen Gelé, an attorney representing Landry in his negotiations with the ethics board over his charges from 2023 that stem from undisclosed donor-funded travel in 2021. Ethics board members warn that the measure could hinder investigations by shortening timelines, requiring early disclosure of evidence and allowing subjects to stall. The board estimates the bill would cost $100,000 annually and require additional staff. The legislation now moves to the Senate. (Julie O'Donoghue, Louisiana Illuminator)

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