Missouri House Bill 2166, just one of many ethics bills moving through the legislature, passed the Government Oversight and Accountability Committee on Tuesday and will be sent to the full House for further debate. The bill bans most lobbyist gifts to state public officials and requires itemization of expenditures on lobbying reports for certain events unless all members of the legislature or all statewide elected officials are invited.

State Rep. Justin Alferman, the bill’s sponsor, says the proposal is designed to “alleviate some of the undue influence of lobbyists in Jefferson City.”

State Sen. Ernie Chambers introduced a resolution to prevent lobbyist-provided meals from influencing legislators. The resolution, Legislative Resolution 414, prohibits lobbyists from providing meals to legislators inside the Capitol while the legislature is in session. Last year, catering bills, paid for by lobbyists, exceeded $10,000.

Nebraska law currently limits gifts from lobbyists at $50 per month to senators and their immediate families, but meals and beverages do not count toward the limit when the lobbyist is present at the event.

Defending the tradition of a serving line during the final weeks of the session, Speaker Galen Hadley dismisses the idea of food influencing how a senator votes. Sen. Chambers believes the practice creates the appearance of impropriety and should be ended.

On January 19, the U.S. Supreme Court denied an appeal arguing against a federal law banning political contributions to candidates from federal contractors. Last year, in Miller v. Federal Election Commission, formerly Wagner v. Federal Election Commission, the U.S. District Court of Appeals for the District of Columbia unanimously upheld the constitutionality of the law barring contractors from contributing to candidates, parties, and candidates’ and parties’ committees.

Plaintiffs had challenged the constitutionality of 52 U.S.C. § 30119(a)(1), which prohibits any vendors with contracts with the federal government from making political contributions to federal candidates or political parties. The plaintiffs had asked the court to declare the law unconstitutional as applied to individuals who have personal services contracts with federal agencies. Because federal workers who are not contractors may make federal political contributions while contractors performing the same work may not, the suit argued the law violates both the Equal Protection Clause of the Constitution and the First Amendment.

Photo of the United States Supreme Court by UpstateNYer on Wikimedia Commons.

On January 19, U.S. Congressman David Jolly introduced legislation prohibiting members of the U.S. Congress from personally asking people for money. The Stop Act would ban federal officeholders from directly soliciting political contributions, but would allow them to attend fundraisers and speak to donors. As noted in Jolly’s press release, this prohibition is similar to rules controlling some state judicial elections barring candidates from personally asking for contributions. The U.S. Supreme Court recently upheld a comparable Florida Statute.

“It’s time members of Congress stop asking people for money and start doing their jobs.  Let’s close the integrity gap and the performance gap of our elected officials by eliminating their fundraising solicitations and put them back to work,” said Jolly in his press release.

A bill seeking to increase lobbyist disclosure advanced in committee in the Florida state senate. Senate Bill 686, if passed, will require lobbyists to report on a monthly basis the bills and amendments they are attempting to influence. This would include listing the specific bar code the legislature uses to track amendments.

The bill still has several hurdles to clear before reaching the Senate floor, including three more committees.

State Representative Jeff Steinborn has introduced three pieces of legislation aimed at lobbyist disclosure and transparency. Steinborn’s bills would require employers of lobbyists to file biannual reports disclosing all funding spent to lobby the state government; would require lobbyists to disclose specific pieces of legislation and administrative issues they are hired to work on; and would require lobbyists to specifically list each legislator who receives a gift, meal, or other expenditure from them.

Steinborn has been successful with lobbyist legislation in the past, having passed a bill requiring the Secretary of State to publish lobbyist spending online in a searchable and downloadable format.

Attorney General Bob Ferguson has recommended legislation prohibiting state officials and employees from becoming lobbyists for one year after leaving office.

This is his second attempt to address his state’s revolving door. The bill is being considered in committee.

Photo of Attorney General Bob Ferguson by Joe Mabel on Wikimedia Commons.

State lawmakers have introduced legislation to make it harder for candidates to misuse campaign contributions. So far, thirty senators have backed a measure allowing the Nebraska Accountability and Disclosure Commission to cross-check campaign finance reports with year-end balances of campaign committees to ensure the proper use of campaign funds.

The bill also prohibits loaning campaign funds and increases penalties for violations of the law. A similar bill was introduced last year but died before reaching the floor.

Sen. John Murante, the committee chair of the Government, Military, and Veterans Affairs Committee, where the bill is being held, said he will bring the bill up for discussion in the coming weeks.

National:

Groups Decrying ‘Dark Money’ Use Shadowy Money Themselves
Center for Public Integrity – Liz Essley Whyte | Published: 1/14/2016

A number of groups that advocate against anonymous donations in politics are themselves responsible for putting money into elections that cannot be traced, often hidden under layers of opaque networks. The organizations either gave to ballot measure campaigns, paid for messages about candidates, or gave to PACs. But many of the groups identified by the Center for Public Integrity said they already exceed what the law requires by disclosing at least some of their donors. Some relied on an argument that opponents of disclosure raise regularly: their donors could face hostility or mistreatment if the public knew the donors’ identities.

State Legislatures Tweak Lobbying Rules as Influence Industry Targets Their Capitols
Washington Post – Catherine Ho | Published: 1/7/2016

Legislatures around the country are enacting new rules to regulate lobbying. Many focus on disclosure as states seek to better define who lobbyists are and what they are allowed to do. The new rules are not expected to dramatically change the lobbying landscape in any of the states, but they do signify a movement by governments to tweak, improve, and clarify rules for lobbyists at a time that many hotly contested lobbying fights, such as those over gun laws, are progressing more quickly in state capitals than they are in Congress.

Federal:

Carson Campaign in Turmoil as Finance Chair Quits
Politico – Kyle Cheney | Published: 1/14/2016

Ben Carson’s presidential campaign was shaken by another high-profile resignation, with finance Chairperson Dean Parker leaving amid scrutiny over his grip on the campaign’s fundraising operation and the perception he has benefited improperly from campaign spending. From chartered flights to investments in ineffective paper mailers in early voting states, decisions made by staff have raised questions in recent months about whether the campaign is spending its money wisely. The resignation comes after it was reported that Parker was paying himself a salary of $20,000 per month, which is unusually high for such a position.

From the States and Municipalities:

Florida – Miami Beach Commissioners Unanimously Pass Stricter Campaign Finance Laws
Miami Herald – Joey Flechas | Published: 1/13/2016

Miami Beach commissioners approved more stringent campaign finance laws after last year’s controversy about the role of special-interest money in local politics. Commissioners and candidates will no longer be able to solicit PAC contributions from lobbyists and vendors who have city contracts. The law also prohibits indirect solicitations, such as a third party asking lobbyists and vendors on behalf of candidates and elected officials.

Florida – Perry Violated Ethics Laws in Lobbying Scott on Medicaid Dental Provider
PoliticoFlorida – Marc Caputo | Published: 1/14/2016

Though Florida law says “a person may not lobby an agency [of state government] until such person has registered as a lobbyist,” Rick Perry did not do that when he met with Gov. Rick Scott, a top staffer, and the head of the Agency for Health Care Administration. The meeting was left off of Scott’s official daily schedule, which was updated hours later after a reporter inquired about it. It took Perry a few more hours to register as a lobbyist for MCNA Dental as questions were raised about whether he was following the law. The meeting was set up by Southern Strategy Group, a lobbying firm that represents MCNA Dental, to discuss legislation that would eliminate dental services from the list of health care services that managed care plans are required to offer beneficiaries.

Maine – Maine Governor Blames Media for Racially Charged Language Dust-Up
CNN – Gregory Krieg | Published: 1/8/2016

Maine Gov. Paul LePage apologized for his remark about out-of-state drug dealers impregnating “young white” girls, calling it a slip of the tongue and saying he did not mean to inject race into discussion of Maine’s heroin epidemic. LePage blamed reporters for unfairly focusing on the slip-up in which he described the drug dealers as “guys with the name D-Money, Smoothie, Shifty” and added, “Half the time they impregnate a young white girl before they leave.”

Massachusetts – Dispute Over State Senator’s Dirty Laundry Raises Questions
Boston Globe – Andrea Estes | Published: 1/12/2016

The former owner of Woodlawn Cleaners said Massachusetts Sen. Brian Joyce received tens of thousands of dollars in free dry cleaning services over the course of a decade. Jerry Richman said he offered to clean Joyce’s clothes for free when Joyce was running for state Senate in 1997, but there was no formal or written agreement. Joyce’s attorneys say the free dry cleaning was in exchange for legal services provided by the Joyce over the years. Ethics experts said public officials in Massachusetts should not accept any services worth more than $50. Even if he traded legal services for the dry cleaning, he would have to keep records to show he did not receive a net benefit of $50 or more. Joyce has acknowledged there is no written record of the dry-cleaning-for-legal services arrangement and he cannot remember when it began.

Massachusetts – Walsh Reverses Course, to Back Lobbying Rules
Boston Globe – Andrew Ryan and Mark Arsenault | Published: 1/9/2016

Boston Mayor Martin Walsh said he will propose regulations for municipal lobbyists that could for the first time require public disclosure of their efforts to influence development, contracts, and permits. Walsh’s announcement comes after The Boston Globe reported how a childhood friend and former law partner of the city’s top lawyer leveraged his personal relationships for introductions and access to key administration officials. Walsh said the reform will be modeled on state lobbying laws, which require lobbyists to disclose their clients, the matters on which they are lobbying, and their compensation.

Missouri – House Approves Ethics Package Including Rowden Proposal Limiting Lobbying
Columbia Tribune – Rudi Keller | Published: 1/14/2016

The Missouri House passed four ethics bills despite objections that the bills were too weak and too narrowly drafted. The package limits officials’ ability to lobby after leaving office, ban work as a political consultant while in office, and require more frequent reporting of personal finance and out-of-state trips. Under one bill, lawmakers and statewide officials elected this year and appointed officials confirmed by the Senate would have to wait one year after leaving office before working as a lobbyist. Officials who leave office before the end of their term would have to wait until the end of the term before the one-year waiting period begins. Another bill would require a report within one month when an official accepts a trip paid by a third party.

Montana – New Campaign Finance Rules Take Effect in Montana
Billings Gazette; Associated Press –   | Published: 1/8/2016

New campaign finance rules took effect in Montana recently. The regulations for a law passed last year aim to make campaigns more transparent after the Citizens United decision that allowed corporations and unions to spend unlimited amounts of money in elections. That ruling has given rise to independent expenditures made by social welfare groups that do not report their donors or spending. Now, groups registered as social welfare or issue advocacy organizations will have to make those disclosures if they produce advertisements or other electioneering communications that mention an election or a candidate, or use a candidate’s image.

New York – New York’s Ethics Rule Could Infringe on Free Speech, Experts Say
Crain’s New York Business – Rosa Goldensohn | Published: 1/13/2016

The Joint Commission on Public Ethics updated an advisory opinion to say that communication between public relations consultants and the press on public policy should count as lobbying. If a consultant has input into the content of such a message and helps to deliver it, that consultant would apparently be a lobbyist under the new rules. The advisory opinion also includes provisions that would require consultants who connect clients with lawmakers to register as lobbyists.

Pennsylvania – City Campaign Finance Limits Increased
Philadelphia Inquirer – Claudia Vargas | Published: 1/11/2016

The Philadelphia Board of Ethics announced that campaign contribution limits have increased for the next four years. Candidates for city office may now accept up to $3,000 from an individual contributor per calendar year, up from the previous $2,900 limit. They may also accept up to $11,900 from groups or businesses, up from the prior $11,500 cap.

Pennsylvania – Struggling Philadelphia Inquirer Is Donated to Nonprofit in Groundbreaking Deal
Washington Post – Fred Barbash | Published: 1/12/2016

H.F. Lenfest, the owner of The Philadelphia Inquirer, The Philadelphia Daily News, and Philly.com, announced he had donated the publications to a newly formed nonprofit journalism institute. The publications will continue to run independently. The new ownership structure comes as daily newspapers contend with falling circulation and dwindling advertising dollars, and many have sought new business models and new revenue sources to combat the decline. “My goal is to ensure that the journalism traditionally provided by the printed newspapers is given a new life and prolonged, while new media formats for its distribution are being developed,” said Lenfest.

West Virginia – Proposed Changes to State Ethics Act Divide Lawmakers
Charleston Gazette – Phil Kabler | Published: 1/11/2016

West Virginia lawmakers on the joint House and Senate Judiciary Committee were divided on two ethics reform bills. That included proposed legislation that would ban registered lobbyists from contributing to campaigns for statewide elected officials or for legislators, with some lawmakers concerned about loopholes in the proposal. Several noted the bill would ban lobbyists and their spouses from making campaign contributions, but does not prohibit the lobbyists’ employers from contributing, or bar lobbyists from hosting fundraisers.

Wisconsin – Elections Board Says Parties Must Report Corporate Donations
Milwaukee Journal-Sentinel – Patrick Marley | Published: 1/12/2016

The Government Accountability Board (GAB) shifted from its stance that Wisconsin’s new campaign finance laws do not require political parties and legislative campaign committees to disclose contributions from corporations. The board unanimously adopted a motion requiring the parties and committees to report such contributions as well as how they spend the money. GAB Director Kevin Kennedy said board staff incorrectly told people the law did not mandate such disclosures. A section of the new law allows corporations to donate up to $12,000 to political parties and campaign committees controlled by legislative leaders. The parties and the committees are limited to spending that money on administrative expenses. They cannot spend the money on expressly advocating for a candidate or pass it on to a candidate.

State and Federal Communications produces a weekly summary of national news, offering more than 60 articles per week focused on ethics, lobbying, and campaign finance.

The state Legislature adjourned on Monday, January 11.

Among the business handled the last day of the session was an amendment to the state constitution to change how redistricting is handled. Due to criticism and a lack of support, the measure was pulled, with state Sen. Nicholas Scutari, who had sponsored the bill, promising the measure would be studied further and reintroduced in next legislative session.

The Legislature passed bills allowing counties to impose a hotel tax, to expand the state’s DNA database, and to require nonprofit hospitals to pay “community service assessments” to the counties in which they are located.

Bills concerning required sick leave for employees and required licensing and insurance for ride-share service drivers, like those who work for Uber or Lyft, expired at the end of the session.

Four ethics bills have passed out of the House Government Oversight and Accountability Committee and now move to consideration by the entire House.

These bills include banning statewide elected officials or legislators from working as political consultants while in office, creating a “cooling off” period of at least a full legislative session before elected officials or officials in jobs subject to Senate confirmation may work as lobbyists, requiring public officials to file semiannual reports detailing their personal finances, and reporting any out-of-state travel for official business when paid for by a third party.

Rep. Gina Mitten questioned the effectiveness of the revolving door bill during the committee hearing, asking if the cooling off period was long enough. She advocated having the measure cover legislative staff, requiring elected officials who leave office early to be prohibited from acting as lobbyists until the end of the term, and making the measure become effective as quickly as possible.

Hearings for bills regulating how to handle surplus campaign funds once an official leaves office and the banning of gifts from lobbyists have been delayed due to issues with the drafting of the bills. The committee will take those bills up next week.

Photo of the Missouri Capitol courtesy of RebelAt on Wikimedia Commons.

On January 13, the Kauai County Council will begin looking at legislation regulating lobbyists. Currently, Kauai County is the only county in the state without a lobbying ordinance.

The new ordinance will require lobbyists to register annually with the county clerk and to report annually lobbying expenditures and what the expenditures were for. Any lobbyist providing testimony at a public hearing will also be required to disclose his or her status as a lobbyists before testifying; this disclosure will have to be made each time a lobbyist testifies.

The bill will also ban all gift-giving by lobbyists. Councilman Gary Hooser, who introduced the bill, said this provision may be amended in later drafts to exclude gifts of aloha, which are items such as cookies, cheese platters, or flower leis.

The Seal of Kauai County courtesy of Collection of Chris on Wikimedia Commons.

What grassroots activities are you involved in? Did you know that reporting your grassroots activities in one state or municipality doesn’t mean that you are required to do so in another? Failure to report if it is required could cause major problems for you and your company. Are you registered as a lobbyist? Could your activities trigger registration and reporting? These are just a few of the items that require your attention when it comes to your government compliance.

Take the opportunity to sit down during the 2016 PAC Grassroots Conference and come have lunch on us! State and Federal Communications is hosting a luncheon on Wednesday, January 27th where you can discuss government compliance and more.

All attendees will be entered into a drawing to win a Fitbit Surge for attending. Seats are limited and are going fast, so check out our video for luncheon details and R.S.V.P. here!

See you in Orlando!

The San Mateo County Board of Supervisors, along with the county chief elections officer, has implemented an electronic filing system for campaign finance reporting. The electronic filing system is now available.

Candidates and committees can file disclosures online, and the disclosures will be posted immediately on the county elections website, www.shapethefuture.org.

Photo of the San Mateo County Government Center by Coolcaesar on Wikimedia Commons.