The Center for Competitive Politics (CCP) today announced that it filed comments critical of a new Municipal Services Rulemaking Board proposal to expand so-called “pay-to-play” rules. The draft amendments to what is formally known as Rule G-37 would in many cases ban certain investment managers from making campaign contributions to candidates for a range of vaguely defined offices. “The proposed rule is too vague, too broad and tramples on the vital First Amendment right to contribute to candidates,” said CCP President David Keating. “The MSRB needs to go back to the drawing board and come up with an alternative that addresses pay-to-play concerns while protecting First Amendment rights.” CCP says the proposed rule is unclear about what persons and candidates are covered by its provisions. For example, the proposed rule would reach candidates for any elective office that “has authority to appoint any person who is directly or indirectly responsible for, or can influence the outcome of” hiring a dealer for municipal securities business or an advisor for municipal advisory business. Yet the rule fails to say what qualifies as “indirect responsibility” or “indirect influence.”
Source: New proposed “pay-to-play” rule draws criticism from free speech group
