On December 16, the Municipal Securities Rulemaking Board (“MSRB”) filed with the SEC a proposed rule that would extend to municipal advisers the MSRB’s existing rule prohibiting “pay-to-play” practices and restricting campaign contributions in the municipal securities and advisory business.

The proposed amendments extend Rule G-37 to municipal advisers and third-party solicitors:

  • Imposing a two-year ban on business with municipal entities after any contribution to an issuer official who can influence municipal-advisory business, subject to $250 de minimis exclusion to officials for whom a contributor can vote;
  • Prohibiting soliciting, coordinating (“bundling”), and contributions to state/local political parties or bond ballot initiatives – as well as indirect violations;
  • Imposing related disclosure and books-and-records requirements.

The filing, SR-MSRB-2015-14, is here.

The Rule amendments were proposed in August of 2014 in MSRB Reg. Notice 2014-15.  I discussed the proposal here.