Compliance Notes - Vol. 7, Issue 3

RECENT LOBBYING, ETHICS & CAMPAIGN FINANCE UPDATES

Campaign Finance & Lobbying Compliance

Hawaii: A federal judge in Hawaii permanently blocked enforcement of a new state law regulating AI-generated and digitally altered election content, ruling it violates the First Amendment. U.S. District Judge Shanlyn Park granted summary judgment to The Babylon Bee, holding that Hawaii's Act 191 imposed unconstitutional restrictions on political speech by barring digitally altered media shared with reckless disregard for potential reputational or electoral harm, even with disclaimer safe harbors. While acknowledging the state's compelling interest in protecting election integrity from deepfakes, Park found the law was not narrowly tailored, relied on vague and subjective standards and risked discriminatory enforcement. She concluded Hawaii failed to show existing laws and less restrictive alternatives, such as counter-speech, education or fraud and defamation enforcement, were inadequate. The decision, issued ahead of the 2026 election cycle, leaves the law unenforceable. (Jeremy Yurow, Courthouse News Service)

Illinois: A new television ad for Chicago Treasurer Melissa Conyears-Ervin is highlighting a federal campaign finance loophole that allows candidates to use state campaign funds while seeking federal office. Conyears-Ervin is running for both Congress and a seat on the Illinois Democratic State Central Committee from the 7th District. While the ad promotes themes typical of a congressional race, including opposition to Donald Trump and support for federal safety-net programs, it is formally attributed to her state central committee bid and paid for with her state campaign account, which is subject to higher contribution limits than federal law permits. The strategy prompted a complaint to the Federal Election Commission (FEC) alleging improper use of state funds. However, campaign attorneys and outside election-law experts said the ad appears permissible under FEC rules for candidates seeking multiple offices, so long as it does not explicitly reference the federal race or congressional opponents. (Rick Pearson, Chicago Tribune) (subscription required)

South Dakota: South Dakota lawmakers advanced a bill to the state Senate that would prohibit candidates and political committees from accepting campaign contributions or loans from foreign nationals, adding the federally defined term to the state's list of banned sources and increasing penalties for violations. The measure, introduced by Attorney General Marty Jackley, passed a House committee 7–0 and would make knowingly and intentionally accepting such funds a higher-level misdemeanor, with repeat offenses elevated to a felony. Jackley said enforcement would rely on referrals from the secretary of state or complaints from political opponents and that accidental acceptance would not be prosecuted. The bill includes an emergency clause requiring a two-thirds vote to take effect immediately upon enactment, ahead of the June 2026 primary. It is intended to align state law with federal restrictions and a March 2025 presidential executive order that prioritizes enforcement against foreign national influence in elections. (Joshua Haiar, South Dakota Searchlight)

Government Ethics & Transparency

California: The California Fair Political Practices Commission (FPPC) announced it will launch a new website on Friday, February 6, 2026. According to the FPPC, the new website will contain the same information with a new look. (FPPC)

Illinois: Chicago's Board of Ethics has been unable to meet for months because Mayor Brandon Johnson has not appointed a permanent chair to replace William Conlon, who stepped down in July 2025. As a result, the board has canceled multiple meetings and delayed at least nine pending enforcement matters involving alleged campaign finance violations, nepotism and bribery. Ald. Matt Martin and good-government advocates criticized the delay as a failure of oversight, while Johnson said the administration is vetting candidates and maintains ethics remain a priority. The board's paralysis comes as the city also begins a formal search for a new inspector general to replace Deborah Witzburg, who leaves in April 2026, under a new process designed to limit mayoral control after past disputes. Johnson's strained relationship with ethics watchdogs and the City Council has already prompted legislative changes to Chicago's ethics law, including restrictions on lobbyist donations to mayoral candidates and amendments to prevent interference with inspector general investigations. (Heather Cherone, WTTW)

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