Initiative 122, a ballot measure proposing to raise property taxes in Seattle to create a publicly financed elections program, will appear on the general election ballot in Seattle. If passed, the “Honest Elections Seattle” measure would impose a $30 million tax levy over a 10 year period, granting citizens four $25 “democracy vouchers” to use towards the campaigns of city candidates.

Initiative 122 would also ban contributions from corporations with medium-sized and large city contracts as well as corporations who lobby city officials. Contribution limits would also be lowered under the measure, from $700 per election cycle to $500.

Voters in Seattle will have an opportunity to approve or deny Initiative 122 on November 3, 2015, at the regularly scheduled general election.

Last week 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. In Wagner v. Federal Election Commission, 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.

The Washington Legislature adjourned its third special session on Friday, July 10, 2015, after approving legislation to fund construction for new infrastructure.

The 2015 legislative session was scheduled to last 105 days, but at adjournment of the third special session, tallied well over 170 days, making it the longest session in state history.

Photo of the Washington State Capitol building by Nikopoley on Wikimedia Commons.

Gov. Robert Bentley has called a special legislative session to convene Monday, July 13, 2015. Bentley originally planned to call a special session to convene in mid-August or after Labor Day to give lawmakers an opportunity to make summer plans for June and July. Many legislators are frustrated with the abrupt timing of the special session.

Speaker of the House Mike Hubbard sent an email to members of the House detailing a plan to convene the special session on Monday and then immediately adjourn until August 3, 2015. Such a maneuver would keep the clock running on the special session, which by statute may only last 30 days, giving legislators approximately a week to come back into session on August 3.

Gov. John Kasich signed House Bill 64, the biennial budget, on June 30. In addition to making $71 billion in appropriations, the bill modifies existing ethics and campaign finance laws. The bill authorizes the creation of a “Teacher of the Year” designation and allows a recipient of the award to receive gifts or privileges as part of the recognition program. In addition, the bill allows a person or entity to make contributions to the program without violating ethics laws.

House Bill 64 also permits nonprofit corporations designated as tax-exempt business organizations (i.e., 501(c)(6) organizations) to transfer portions of dues payments from its unincorporated member businesses to the organization’s political action committee (PAC). Prior to House Bill 64, campaign finance law banned a corporation from using its own funds, even those raised by dues, to aid any PAC, including its own.

Federal:

As Donald Trump Surges in Polls, Democrats Cheer
Washington Post – Philip Rucker | Published: 7/1/2015

With the Republican Party on a mission to woo Latino voters, one of its presidential candidates has been enmeshed for two weeks in a feud over his inflammatory comments about Mexican immigrants. “They’re bringing drugs, they’re bringing crime, they’re rapists,” Donald Trump said in his campaign announcement speech. The comments, and many more since, have prompted an uproar among Latino groups and a series of nasty break-ups between Trump and various corporate partners. His outlandish rhetoric and skill at occupying the national spotlight is also proving to be dangerously toxic for the GOP brand, which remains in the rehabilitation stage after losing the 2012 presidential race.

Bernie Sanders Doesn’t Follow the Money
Politico – Tarini Parti and Jonathan Topaz | Published: 6/28/2015

Working almost exclusively from his website, U.S. Sen. Bernie Sanders has raised about $8 million so far for his presidential campaign with an average donation of around $40. But Sanders, who has been rising fast in recent early-state polls, is missing an opportunity to capitalize on his momentum with a progressive base that has been without a standard-bearer since U.S. Sen. Elizabeth Warren declined to run. “I frankly don’t get the restraint ….,” said Harvard University professor Lawrence Lessig, adding that some think Sanders is ruining his presidential chances by not having a super PAC. Sanders faces the daunting task of finding a way to stay competitive in the Democratic primaries against one of the most potent pair of fundraisers in party history, Bill and Hillary Clinton, who are expected to count their receipts on Hillary’s behalf in the billions of dollars.

From the States and Municipalities:

Arizona – Justices Rule 5-4 That Independent Panels Can Draw Election District Lines
Washington Post – Robert Barnes | Published: 6/29/2015

The U.S. Supreme Court upheld Arizona’s congressional map, declaring the use of an independent redistricting commission that drew House district lines in the 2012 cycle did not violate the Constitution. About a dozen states have experimented with redistricting commissions that have varying degrees of independence from the state Legislatures, which ordinarily draw election maps. Justice Ruth Bader Ginsburg rejected the Arizona Legislature’s contention that it alone has power over redistricting. She said the decision by voters to turn reapportionment over to an independent commission “was in full harmony with the Constitution’s conception of the people as the font of governmental power.”

California – Ex-State Sen. Leland Yee Pleads Guilty to Racketeering in Corruption Case
Los Angeles Times – Lee Romney | Published: 7/1/2015

Former California Sen. Leland Yee pleaded guilty to a racketeering charge in an organized crime and public corruption case. He could face a maximum of 20 years in prison when he is sentenced in October. The FBI arrested Yee and 19 others in 2014 during a series of raids targeting a Bay Area organized crime ring. Yee was accused of soliciting and accepting bribes in exchange for providing help from Sacramento. The FBI also alleged that Yee, who was running for secretary of state at the time, conspired to connect an undercover agent with an international arms dealer in exchange for campaign contributions.

Florida – How Marco Rubio Turned Political Star Power into a Soaring Personal Income
Washington Post – Tom Hamburger and Sean Sullivan | Published: 6/29/2015

During his nine years in Tallahassee, as U.S. Sen. Marco Rubio rose in prominence and ascended to the state House speakership, he became increasingly well-compensated as he walked a narrow line between his work as a lawmaker and an employee of outside firms with interests before the state government. An analysis shows about 80 percent of his total income during his House tenure came from Florida law firms that lobby state and local governments. Rubio’s annual income grew from about $72,000 when he was elected to the state House in 2000 to $414,000 in 2008, when his two-year speakership ended.

Maine – Combative Maine Governor Becomes a Party of One
New York Times – Katherine Seelye | Published: 6/28/2015

In the last few weeks, Maine Gov. Paul LePage’s belligerence has surprised even his critics, and prompted some to raise the specter of impeachment. In a standoff that began with differences over tax policy, LePage has alienated just about the entire Legislature, including his fellow Republicans and onetime allies.

New York – Ex-N.Y. State Senator Gets Seven Years in Prison for Bribery
Albany Times Union – Tom Hays (Associated Press) | Published: 7/1/2015

Former New York Sen. Malcolm Smith will spend seven years in prison for a scheme to bribe his way onto the ballot for the 2013 New York City mayoral election. Smith wanted to be mayor but sought to avoid a Democratic primary. He instead decided to obtain the backing of GOP leaders in three boroughs so he could run as a Republican. Prosecutors said he authorized bribes totaling about $200,000. The five other politicians who were arrested with Smith were convicted or pleaded guilty.

New York – IG: State vendor lavished OMIG director with gifts, booze
Albany Times Union – Brendan Lyons | Published: 6/25/2015

A new report accused Joseph Flora, the former director of the New York Office of Medical Inspector General (OMIG), of improperly accepting gifts – including meals, alcohol, and a $130,000-a-year job offer – from a company that has a multimillion-dollar contract with the state. Health Management Systems (HMS) has had multiple contracts with OMIG since 2006. Flora was forced to retire from his state job in 2014 after a probe of his ties to the company. Separately, as a client of a registered lobbyist throughout the entire time period, HMS was subject to certain prohibitions on giving gifts to public officials. The Joint Commission on Public Ethics announced it had reached a settlement under which HMS would pay a $75,000 penalty.

Ohio – Lobbyist a Constant in Columbus’ Politics
Columbus Dispatch – Mark Ferenchik and Lucas Sullivan | Published: 6/28/2015

Lobbyist John Raphael has been a presence in Columbus, Ohio for almost 40 years. He has been an aide to a state senator and a member of the Columbus City Council, helped run a restaurant that was frequented by politicians, and currently represents eight clients at City Hall. And now he is at the center of a political and legal firestorm. In a plea agreement, former Redflex Chief Executive Officer Karen Finley said she passed money through Raphael and the Ohio Democratic Party to elected officials in Columbus to obtain contracts for red-light cameras. Council President Andrew Ginther, running this year to succeed Mayor Michael Coleman, has been subpoenaed in the matter, as has Coleman.

Oregon – How Much Pot Can Lawmakers Receive as a Gift? Oregon Democrat Has Some Advice
Portland Oregonian – Denis Theriault | Published: 6/30/2015

The Oregon Government Ethics Commission’s handbook for elected officials spells out a lot of rules in its section on gifts, especially when the people giving the gift have a financial interest in that official’s work. But none of those rules cover marijuana, which is legal in Oregon but not nationally. Rep. Ann Liniger offered some advice in an email to colleagues, recommending they know the value of the quantity of marijuana they are offered so as not to violate the $50 limit on gifts. But Lininger also sought to clarify her advice when asked about it by reporters. “My recommendation is that elected officials not accept gifts of cannabis,” said Linder.

Oregon – Kate Brown Signs Final Ethics Reforms, Mentions ‘Chaos and Confusion’ of Kitzhaber’s Last Days
Portland Oregonian – Denis Theriault | Published: 7/1/2015

Oregon Gov. Kate Brown signed the last of three ethics-related bills she requested after Gov. John Kitzhaber resigned amid an influence-peddling scandal. House Bill 2019 expands the Oregon Government Ethics Commission from seven members to nine, while speeding up its timelines for investigating complaints and giving legislative leaders a larger role in appointing its members. House Bill 2020 clarifies that the governor’s partner is a public officials who must join file conflict-of-interest forms. It also raises bans the governor and first partner, and all other statewide elected officials, from accepting speaking fees.

Pennsylvania – Lack of Funding for State Ethics Commission Invites Corruption, Experts Worry
Pittsburgh Tribune-Review – Kari Andren | Published: 6/27/2015

The number of staff members at the Pennsylvania Ethics Commission now stands at 17, down 30 percent from the 24 who once worked there. The commission’s funding topped 2009 levels for the first time this year at just more than $2 million. But this year’s $222,000 increase went to the bare essentials: upgrading outdated computers and software and hiring one investigator, the first hire in six years. Executive Director Rob Caruso said with its funding and staffing levels, the commission cannot fully investigate all of the 400 to 500 sworn complaints filed each year. One expert said Pennsylvania’s lack of funding for its watchdog office invites corruption.

Texas – John Wiley Price Associates Enter Guilty Pleas, Agree to Testify
Dallas Morning News – Kevin Krause and Ed Timms | Published: 6/30/2015

Two people have pleaded guilty in a federal corruption probe of Dallas County Commissioner John Wiley Price, who is accused of accepting nearly $1 million in bribes. Christian Lloyd Campbell was a consultant for Price. Campbell pleaded guilty to conspiracy to commit bribery. Price, who awaits trial on conspiracy and fraud-related counts, allegedly accepted bribes to leak confidential information to help Campbell’s clients win contracts. Gallery owner Karen Manning pleaded guilty to subscribing to a fraudulent income tax return. Prosecutors say Manning sold African art for Price in a scheme to hide his illicit profits.

Virginia – With McAuliffe in Office, Old Friends Find New Opportunities
Lexington Herald-Leader – Alan Suderman (Associated Press) | Published: 6/26/2015

After Gov. Terry McAuliffe took office in early 2014, some of his friends – who had never lobbied in Virginia before – started registering as lobbyists with several companies interested in contracting with the state. Among the companies are technology and health care businesses, including some Medicaid-related firms. McAuliffe has made expanding Medicaid a top priority for his administration. He has so far been blocked by the Republican-controlled General Assembly.

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.

On July 1, the maximum value for food, drink, or refreshment an individual may provide to an elected official or public employee in Louisiana for a single event increased from $58 to $60. This threshold value is adjusted each year by the Board of Ethics to reflect changes in the consumer price index.

Q. I recently became a registered lobbyist in my company’s home state.  I am also very active politically.  Are there any restrictions on my political contributions now that I am a registered lobbyist?

A. An individual’s status as a registered lobbyist can place additional restrictions and requirements on him or her related to his or her political contributions. Some jurisdictions place strict restrictions on a lobbyist’s ability to make contributions.  South Carolina prohibits registered lobbyists from making contributions to a candidate or anyone acting on behalf of a candidate if the lobbyist engages in lobbying the public office or public body for which the candidate is seeking election.  California has a similar prohibition, providing lobbyists may not contribute to a state candidate or officeholder, or their controlled committees, if registered to lobby the governmental agency for which the candidate seeks election or to which the officeholder belongs.  Other jurisdictions limit the amount a registered lobbyist can contribute compared to a nonregistered individual.  Registered legislative and executive agents in Massachusetts may contribute no more than $200 in the aggregate to any one candidate and such candidate’s committee during a calendar year.

A number of jurisdictions require reporting of lobbyist contributions.  Pennsylvania has extensive registration and reporting requirements for lobbyists who make personal political contributions, requiring them to register with the state before making a personal contribution and to file reports on the same schedule as a PAC.  Maryland’s reporting requirements are not as extensive, requiring certain political contributions to be disclosed on the lobbyist’s activity report.

When an individual becomes a registered lobbyist, he or she must review the applicable rules on his or her political contributions.  If unsure as to the requirements, please be sure to review our website at www.stateandfed.com for up-to-date information.

You can directly submit questions for this feature, and we will select those most appropriate and answer them here. Send your questions to: experts@stateandfed.com.

(We are always available to answer questions from clients that are specific to your needs, and we encourage you to continue to call or e-mail us with questions about your particular company or organization. As always, we will confidentially and directly provide answers or information you need.) Our replies to your questions are not legal advice. Instead, these replies represent our analysis of laws, rules, and regulations.

The U.S. Chamber of Commerce is the world’s largest business federation representing 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations. More than 96 percent of U.S. Chamber members are small businesses with 100 employees or fewer.

And State and Federal Communications, Inc. is one of those businesses. More important, this week we celebrate our 22^nd anniversary. In that time, we have grown from two employees to 40 employees. We are considered as one of the companies in NE Ohio providing good professional jobs to the community.

I believe I write about our anniversary every July because it is an important one not only for us but for you, our clients, who keep us motivated every day to continue to bring you updated information about lobbying, political contributions, and procurement issues in the states and now almost 300 municipalities.

We have grown to meet your needs in government relations and public affairs. And we are not going to stop.

1.     Our goal in 2015 is to provide a lobbying interface to help you keep track of your activities for federal reports. In fact, it is almost completed, and we will begin our testing. It is quite amazing, and you will find it easier to insure accurate filing of your LD-2 and LD-203 filings.
2.     Do you know how many times I show up in the Research Department and ask for them to add cities and counties… And they always find more to include. We know you are building facilities and offering services around the country, and these small cities and counties have ordinances affecting your activity. If you are missing one, let us know and we will look it up for you.
3.     And we are growing in more ways than one. In addition to staff, we have seven people expecting babies this quarter…Yes, you heard that right. Between July 5 and August 31, we will have six new State and Federal Communications babies. It is an exciting time for the staff.

There are times I truly miss researching updates, and I do miss preparing lobbying disclosure reports (even that pesky Wisconsin form), but I do love operating this company and making sure we are providing good benefits for the staff. I am excited when I see new cars in the parking lot or when new homes are purchased. I know they are deepening roots in the community and at State and Federal Communications. And, that, my friends is a WIN WIN for all of us.

Until next month, enjoy the holiday weekend, go to a baseball game, and enjoy the summer.

State and Federal Communications is marking 22 extraordinary years of serving our clients! Enjoy this fun video highlighting the year in review.

The Delaware General Assembly adjourned June 30, 2015, after many weeks of negotiation to pass the state’s budget.

In the early morning hours of July 1, 2015, Gov. Jack Markell signed the budget bills and a transportation funding measure, marking the end of the state’s legislative proceedings for the year.

Employees and Interns of State and Federal Communications spent the day at the United Way Day of Action on June 19, 2015. Along with the team from Omnova Solutions, each volunteer had their hands in the dirt beginning at 9:00 am.

The flower beds around the Lake Anna YMCA building looked more beautiful by the minute, with new mulch surrounding each one. A handful of people planted flowers around the fence of the YMCA garden. Halfway through the day, the YMCA staff provided us with a delicious cookout lunch.

It was rewarding to help out an organization that does so much for the community.

Enjoy this video created by our intern Elizabeth Scozzaro.

The Washington Legislature adjourned its second special session on June 27, 2015, only to convene a third special session on the following day, June 28, 2015.

Legislators were under pressure to come to a budgetary agreement by July 1, 2015, or risk the shutdown of many government services. A budget bill was passed by both houses late Monday, June 29, 2015, and has been sent to the Governor.

Gov. Jay Inslee must sign the bill by midnight Tuesday, June 30, 2015, to avoid any interruption in government services and he plans to do so well in advance of the deadline on Tuesday.

The National Assembly in Quebec has introduced new legislation proposing to strengthen and expand lobbying activities. Bill 56, titled the Lobbying Transparency Act, expands the scope of the definition of lobbyists to include shareholders lobbying for an entity as well as directors and officers of a non-profit. The bill also expands the types of activity considered to be lobbying.

Under Bill 56, all lobbying engaged in by enterprise or organization lobbyists triggers registration, not just those activities which represent a significant portion of his or her job, as is the threshold under current law. Making an appointment or setting up a meeting with a public office holder is considered lobbying under the proposed legislation.

Bill 56 requires each lobbyist to file a return before engaging in lobbying activity. This provision makes Quebec the only Canadian province to require registration prior to lobbying.

Finally, the bill imposes stricter penalties and higher fines on violators of the law.