Shareholder proposals on political issues—particularly lobbying spending disclosure and campaign finance issues—have been a common part of the proxy landscape for some time now. This proxy season, proposals seeking greater transparency around corporate political spending had surprising success compared to the past. Especially given this development, companies should be aware
Continue Reading Corporate Political Disclosure Shareholder Proposals Draw Surprising Support
When Investor Relations Become Procurement Lobbying
Employees in the investor relations departments of hedge fund managers and private equity firms typically do not consider themselves “lobbyists.” But state and local regulators sometimes have a different view. This article, published in the Hedge Fund Law Report, explains the types of investor relations activities that could
Continue Reading When Investor Relations Become Procurement LobbyingCalifornia Updates Pay-to-Play Law Regulations to Reflect Recent Law Changes
Important changes to California’s pay-to-play law took effect January 1, 2025, and now the state’s regulations have caught up to the law.
The state’s Fair Political Practices Commission adopted the new regulations late last month, following statutory revisions to California’s complex pay-to-play law found at California Government Code § 84308
Continue Reading California Updates Pay-to-Play Law Regulations to Reflect Recent Law ChangesFEC Raises Contribution Limits for 2025-2026
The Federal Election Commission has announced contribution limits for 2025-2026. The new “per election” limits are effective for the 2025-2026 election cycle (November 6, 2024 – November 3, 2026), and the calendar year limits are effective January 1, 2025.
The FEC increased the amount an individual can contribute to
Department of Justice Proposes Major Changes to FARA Regulations, Including Sweeping Changes Affecting Multinational Companies
On January 2, 2025, the Department of Justice published a Notice of Proposed Rulemaking
(“NPRM”) soliciting public comments on potential amendments to the Department’s regulations
regarding the Foreign Agents Registration Act (“FARA”). The regulatory amendments proposed
by the Department are significant, and they would take the statute in a substantially
FEC Year in Review 2024
With a game-changing advisory opinion (AO 2024-01), 2024 started out with a bang at the Federal Election Commission (“FEC”). Other consequential opinions, enforcement actions, and regulations continued in the following months, challenging the notion that the divided Commission cannot find consensus.
In this alert, we highlight the FEC’s major
Continue Reading FEC Year in Review 2024Avoiding Pitfalls on the Path to Election Day: Common Political Law Risks for Corporations in Election Season
With Election Day fast approaching, corporations face increasing pressure from both internal and external forces to make legal decisions about political activities. This can be a fraught area of law, with little understood, highly technical regulatory issues that vary significantly across jurisdictions. Corporate counsel should be mindful of common—and sometimes
Continue Reading Avoiding Pitfalls on the Path to Election Day: Common Political Law Risks for Corporations in Election SeasonCalifornia Passes New Pay-to-Play Regulations for Contributions by Government Contractors and Others
California recently passed a series of new regulations affecting its “pay-to-play” laws that limit political contributions by state and local government contractors and others involved in proceedings on contracts, licenses, permits, and other “entitlements for use” in the state. These regulations implement changes to the law that took effect this
Continue Reading California Passes New Pay-to-Play Regulations for Contributions by Government Contractors and OthersWhen is a Treasurer Personally Liable for PAC Violations?
The Federal Election Commission (“FEC”) recently answered a common question for those involved in operating a federal PAC: When is the treasurer personally liable for violations of the rules on recordkeeping and reporting? In doing so, the FEC highlighted the importance of external oversight of PAC operations, and the value of periodic audits of the PAC that can identify problems before they grow.
The case involved a non-connected PAC affiliated with the Ute Indian Tribe (“Tribe”). The Tribe hired a consultant who claimed extensive knowledge of the FEC’s intricate rules. The Tribe allowed the PAC to operate outside its routine financial controls because the consultant told them the PAC would operate under the FEC’s recordkeeping and reporting system.
Trouble began immediately, with the FEC’s Reports Analysis Division flagging problems with 75% of the reports the PAC filed in the three years after it began receiving funds in 2016. As one measure of visible distress, the PAC amended one report five times. Because no one at the Tribe was overseeing the PAC’s correspondence with the FEC—which were available on the FEC website—the Tribe was unaware of these warning signs. The volume and magnitude of the filing errors ultimately triggered an FEC audit, which the treasurer also concealed from the Tribe, according to the complaint.Continue Reading When is a Treasurer Personally Liable for PAC Violations?
California Raises Campaign Contribution and Gift Limits for 2023-2024
The California Fair Political Practices Commission (FPPC) adopted on Thursday higher political contribution limits and public officer gift limits for the 2023-2024 political cycle. The new limits take effect on January 1, 2023.
Contribution Limits
Under the new limits, an individual, business entity, or committee/PAC can contribute $5,500 per election to candidates for state legislature, up from $4,900. This means that individuals may generally give $11,000 per candidate per cycle, because the primary and general are considered separate elections. The same limit also applies to a candidate for local office unless the locality has adopted its own limits. The limit on contributions from an individual, business entity, or committee/PAC to a candidate for governor also increased, from $32,400 to $36,400 per election. The limit on contributions to PACs that contribute to candidates increased from $8,100 to $9,100 per year, though PACs can also have a separate, noncontribution account with no limit.
The following chart has additional details on the limits for individuals in 2023 and 2024:
An individual, business entity, or committee/PAC may contribute to…
| Governor | $36,400 | per election |
| Lt. Governor, Secretary of State, Attorney General, Treasurer, Controller, Supt. of Public Instruction, Insurance Commissioner, and Board of Equalization | $9,100 | per election |
| Senate and Assembly | $5,500 | per election |
| City and County Candidates if no locally enacted limit | $5,500 | per election |
| CalPERS/CalSTRS | $5,500 | per election |
| Committee (PAC), other than a Political Party, that contributes to State Candidates | $9,100 | per calendar year |
| Political Party Account for State Candidates | $45,500 | per calendar year |
| Small Contributor Committee | $200 | per calendar year |
| Committee Non-Contribution Account | No Limit | per calendar year |
Continue Reading California Raises Campaign Contribution and Gift Limits for 2023-2024