[EL] ELB News and Commentary 10/16/11

[Goldfeder, Jerry H.]

Adam's comment needs to be modified to read that state/local electeds with influence over such investment decisions are governed by the SEC Rule irrespective of the federal or state office they seek. It is either running for or holding such an office that triggers the two-year non-remuneration penalty.

Jerry H. Goldfeder
Stroock & Stroock & Lavan LLP
180 Maiden Lane
New York, NY 10038
212 806 5857
917 680 3132
jgoldfeder at stroock.com
www.stroock.com/goldfeder

----- Original Message -----
From: Bonin, Adam C. [mailto:ABonin at cozen.com]
Sent: Sunday, October 16, 2011 05:36 PM
To: Edward Still <still at votelaw.com>; law-election at UCI.EDU <law-election at uci.edu>
Subject: Re: [EL] ELB News and Commentary 10/16/11

The rule does not apply to every state official seeking federal office, but only those state officials with formal authority/influence over the selection of investment advisers (in whatever office they're now seeking).

________________________________
From: law-election-bounces at department-lists.uci.edu [law-election-bounces at department-lists.uci.edu] on behalf of Edward Still [still at votelaw.com]
Sent: Sunday, October 16, 2011 5:20 PM
To: law-election at UCI.EDU
Subject: Re: [EL] ELB News and Commentary 10/16/11

Adam,

Would you agree that Rick Perry is covered because he is a current state officeholder, not because he is running for a federal office, as the Weekly Standard stated?

Edward Still
Edward Still Law Firm LLC
130 Wildwood Parkway, Suite 108, PMB 304
Birmingham AL 35209
205-320-2882 (voice & fax)
  www.votelaw.com/blog<http://www.votelaw.com/blog>
  www.edwardstill.com<http://www.edwardstill.com/>
  www.linkedin.com/in/edwardstill<http://www.linkedin.com/in/edwardstill><http://www.linkedin.com/in/edwardstill>


On Sun, Oct 16, 2011 at 4:04 PM, Bonin, Adam C. <ABonin at cozen.com<mailto:ABonin at cozen.com>> wrote:
The Rule excludes federal officials, insofar as the definition of "government entity" whose officials are covered is "any state or political subdivision of a state."  Rule 206(4)-5(f)(5).  http://www.sec.gov/rules/final/2010/ia-3043.pdf

>From the summary:

The rule’s two-year time out is triggered by a contribution to an “official” of a “government entity.” An official includes an incumbent, candidate or successful candidate for elective office of a government entity if the office is directly or indirectly responsible for, or can influence the outcome of, the hiring of an investment adviser or has authority to appoint any person who is directly or indirectly responsible for, or can influence the outcome of, the hiring of an investment adviser. Government entities include all state and local governments, their agencies and instrumentalities, and all public pension plans and other collective government funds, including participant-directed plans such as 403(b), 457, and 529 plans.


________________________________
From: law-election-bounces at department-lists.uci.edu<mailto:law-election-bounces at department-lists.uci.edu> [law-election-bounces at department-lists.uci.edu<mailto:law-election-bounces at department-lists.uci.edu>] on behalf of John Tanner [john.k.tanner at gmail.com<mailto:john.k.tanner at gmail.com>]
Sent: Sunday, October 16, 2011 4:23 PM
To: Edward Still
Cc: law-election at UCI.EDU<mailto:law-election at UCI.EDU>
Subject: Re: [EL] ELB News and Commentary 10/16/11

It looks like this is addressed to those who manage pension funds.  Does the federal government actually manage any pension funds?  I understood that federal pensions, like social security, are not backed by actual assets that are invested in anything other than, perhaps, Treasury bonds that we have sold to ourselves -- that they're secured by a general promise to pay us later or at least respect us in the morning.

On Sun, Oct 16, 2011 at 3:59 PM, Edward Still <still at votelaw.com<mailto:still at votelaw.com><mailto:still at votelaw.com<mailto:still at votelaw.com>>> wrote:
I have a question about the Weekly Standard article linked below. The article says, "And while this new ruling primarily affects Perry at the presidential level, it could have far-reaching consequences going forward, since it applies to every state office holder seeking federal office from here on out." A quick review of the SEC's final rule<http://www.sec.gov/rules/final/2010/ia-3043.pdf> leads me to believe that the rule applies to office holders and candidates at any level of government, not just those seeking federal office. Specifically, the following definition in the rule leads to that conclusion:

§ 275.206(4)-5 (f) (6)
Official means any person (including any election committee for the person) who was, at the time of the contribution, an incumbent, candidate or successful candidate for elective office of a government entity, if the office:
(i)
Is directly or indirectly responsible for, or can influence the outcome of, the hiring of an investment adviser by a government entity; or
(ii)
Has authority to appoint any person who is directly or indirectly responsible for, or can influence the outcome of, the hiring of an investment adviser by a government entity.

Am I wrong in my conclusion?


Edward Still
Edward Still Law Firm LLC
130 Wildwood Parkway, Suite 108, PMB 304
Birmingham AL 35209
205-320-2882<tel:205-320-2882><tel:205-320-2882<tel:205-320-2882>> (voice & fax)
 www.votelaw.com/blog<http://www.votelaw.com/blog><http://www.votelaw.com/blog>
 www.edwardstill.com<http://www.edwardstill.com><http://www.edwardstill.com/>
 www.linkedin.com/in/edwardstill<http://www.linkedin.com/in/edwardstill><http://www.linkedin.com/in/edwardstill>
<http://www.linkedin.com/in/edwardstill>


On Sun, Oct 16, 2011 at 11:29 AM, Rick Hasen <rhasen at law.uci.edu<mailto:rhasen at law.uci.edu><mailto:rhasen at law.uci.edu<mailto:rhasen at law.uci.edu>>> wrote:

“The Perils of Donating to Perry; The SEC’s curious role in campaign finance.”<http://electionlawblog.org/?p=24256>
Posted on October 15, 2011 5:14 am<http://electionlawblog.org/?p=24256> by Rick Hasen<http://electionlawblog.org/?author=3>

The Weekly Standard reports<http://www.weeklystandard.com/articles/perils-donating-perry_595199.html>.

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