Thursday, July 3, 2014

New New York "Independent Expenditure" Disclosure Requirements

Sseal_color_roundNicholas Mirkay previously wrote in this space about the new California law that requires disclosure of donors and other information for nonprofits engaged in certain political communications in that state.  New York also recently enacted new disclosure requirements for "independent expenditures" and then issued emergency regulations to implement these new rules that will impact nonprofits engaged in certain political communications in that state.

For purposes of the New York law, the range of communications that trigger disclosure is much broader than the federal definition of "express advocacy" or "electioneering communications".  More specifically, those communications are defined as follows:

  • Type of Communication:  Audio or video communication via broadcast, cable, or satellite, written communication via advertisements, pamphlets, circulars, flayers, brochures, or letterheads, or other published statements (including paid Internet advertising), if the communication is conveyed to 500 or more members of a general public audience.
  • Content of Communication:  Either contains words such as "vote," "oppose," "support," "elect," "defeat," or "reject" that call for the election or defeat of a cleary identified candidate or refers to and advocates for or against a clearly identified candidate or ballot propoal; whether a communication advocates for or against is based on an all relevant facts and circumstances test.
  • Timing of Communication:  Anytime for communications that contains the express advocacy words; on or after January 1 of the election year for other communications that advocate for or against.

All groups covered by these rules, including nonprofits, must register before making any independent expenditures and then must file reports disclosing both expenditure details and identifying information for any person providing a contribution of $1,000 or more.

In related news, according to a Politico report Citizens United recently announced it plans to sue the New York Attorney General over his issuance of earlier regulations imposing new disclosure requirements on nonprofits engaged in election-related spending.  It is not clear if the lawsuit will be expanded to also encompass the recently enacted disclosure rules.

Lloyd Mayer

http://lawprofessors.typepad.com/nonprofit/2014/07/new-new-york-independent-expenditure-disclosure-requirements.html

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