The Fair Political Practices Commission (FPPC) has made adjustments to the gift and campaign contribution limits by adopting amendments to state regulations. The adjusted annual gift limit for covered candidates, officers, and employees will increase from $440 to $460.

Contribution limits will increase to $4,200 from $4,100 for candidates to the Legislature, the Board of Administration of the Public Employees Retirement System, and the Teachers’ Retirement Board.

The new limits are based on changes to the consumer price index and effective for the period from January 1, 2015, through December 31, 2016.

The SGAC Foundation Leaders’ Policy Conference is always an extraordinary gathering of legislative leadership from the states and top state government affairs professionals. We are attending the conference, which will be held in Scottsdale, Arizona on November 22-25, 2014. The agenda boasts a wide range of speakers including Donna Brazile, Secretary Tom Ridge, and Ashley Judd!

State and Federal Communications is proud to be a Special Events Sponsor of this great event!

National:

A Citizen’s Guide to Buying Political Access
New York Times – Tara Siegel Bernard | Published: 11/18/2014

A recent study provides some confirmation of what many voters have long assumed: campaign donations buy access to politicians. Precisely how much money it takes to gain access is up for debate, and it will vary across offices, but even politicians themselves have admitted big donors get special treatment. As long as there is not an exchange of money for favors, the potential influence of large donors has been deemed acceptable by the U.S. Supreme Court, which in recent decisions relaxed rules on financing campaigns. At the state level, research has found money is more influential in some Legislatures than in others, and what is considered a meaningful donation will also differ.

Federal:

How the GOP Used Twitter to Stretch Election Laws
CNN – Chris Moody | Published: 11/15/2014

The National Republican Congressional Committee and a pair of GOP-aligned outside groups, the American Action Network and American Crossroads, used anonymous Twitter accounts to share polling information ahead of the 2014 elections, according CNN. That allowed them to skirt rules banning private sharing of information between outside groups and the national parties, rules that have been increasingly circumvented as campaign finance laws have crumbled in the wake of the U.S. Supreme Court’s Citizens United decision. There are still rules preventing direct coordination but campaigns and committees often publicly post information, messaging, and video footage in order to let super PACs and other outside groups use the information.

New Senators Tilt G.O.P. Back toward Insiders
New York Times – Jeremy Peters | Published: 11/15/2014

When Republicans take over the U.S. Senate in January, the 11 men and women of the party’s freshman class will be, with a lone exception, people whose careers blossomed inside the government bureaucracy. They are a counterintuitive fit with the anti-government, anti-establishment fervor that has energized the GOP of late. And their victories seem hard to reconcile with the strong hostility toward government institutions that dominated the recent midterm elections.

Top Spenders on Capitol Hill Pay Billions, Receive Trillions
Sunlight Foundation – Bill Allison and Sarah Harkins | Published: 11/17/2014

The Sunlight Foundation has devised a new way to gauge how much power corporations wield in Washington, D.C. The foundation took the 200 corporations most active in the capital, analyzed the years 2007 to 2012, and applied several metrics: what the companies got in federal contracts and other federal support, what they spent on lobbying, and how much their executives and PACs gave in campaign contributions. Bill Allison, the foundation’s editorial director, said the top 200 corporations accounted for nearly $6 billion in lobbying and campaign contributions; those same companies benefited from more than $4 trillion in federal contracts and assistance.

From the States and Municipalities:

Idaho – Lawyer-Lobbyists Influence Idaho Law
Idaho Statesman – Audrey Dutton | Published: 11/19/2014

Roy Eiguren, a 62-year-old Boise attorney and lobbyist, remembers a day in 2004 when Idaho lawmakers in a special session started at 8:30 a.m. and had an electric-utilities bill on the governor’s desk by 4 p.m. Eiguren was the primary draftsman on the bill. “… It was, I think, a great example where a lawyer who is a lobbyist can play a very significant role,” said Eiguren. He and other lawyers say they happened into lobbying and have witnessed a transformation in Idaho politics and Capitol culture.

Maine – Maine Ethics Commission Wants More Money to Shed Light on Campaign Spending, Lobbying
Lewiston Sun Journal – Mario Moretto (Bangor Daily News) | Published: 11/19/2014

The Maine Commission on Governmental Ethics and Election Practices is looking for additional funding to increase transparency on the financing of campaigns and lobbying. The request would divert all of the revenue from lobbyist registration fees to the commission. The agency currently receives half of all lobbying fees, and the other half goes to the state’s General Fund. “… The commission staff would like to propose that our agency receive the entire fee and use the increased revenue for [information technology] expenses to better disclose lobbying and campaign finance information to the public,” said Executive Director Jonathan Wayne.

Massachusetts – Baker Limits Corporate, Lobbyist Gifts to Inauguration Committee
Boston Globe – David Scharfenberg | Published: 11/19/2014

Massachusetts Gov.-elect Charles Baker set a $25,000 limit on corporate contributions and a $250 cap on lobbyist gifts to his inauguration committee. Donations to inaugural committees are closely watched. Gov. Deval Patrick collected donations of up to $50,000 in the run up to his first inauguration in 2007, a five-day $1 million celebration. Boston Mayor Martin Walsh solicited gifts of up to $25,000 before his swearing-in.

Michigan – Which Lobbyists Interact with Your Lawmakers?
Lansing State Journal – Justin Hinkley | Published: 11/15/2014

Critics say two decades of term limits have drained institutional knowledge from the Michigan Legislature. In response, lobbyists in Lansing have launched a series of forums to train their peers on best practices for the industry as watchdogs call for more transparency. A movement also is afoot to change term limits in the state, though that is not specifically related to lobbying. “People aren’t always up to speed on the rules, the unwritten ones and the written ones, and because of that, there’s the potential for sloppiness,” said Rob Fowler, chief executive officer of the Small Business Association of Michigan.”

Mississippi – Federal Panel Upholds Mississippi Campaign Finance Law
Biloxi Sun Herald; Associated Press –   | Published: 11/14/2014

A federal appeals panel upheld the constitutionality of a Mississippi campaign finance law that requires reporting by people or groups that spend at least $200 to support or oppose a ballot initiative. The three-judge panel of the Fifth U.S. Circuit Court of Appeals reversed a 2013 decision by U.S. District Court Judge Sharion Aycock, who found the $200 reporting threshold too burdensome for smaller groups. The appeals panel said Mississippi’s reporting requirements are similar to those of other states.

Missouri – Missouri Attorney General Puts Limit on Contributions
New York Times – Eric Lipton | Published: 11/19/2014

To repair his reputation, Missouri Attorney Chris Koster has announced self-imposed guidelines on what campaign donations he will accept as he runs his office while also running for governor in 2016. He has been hurt by reports that his office may have given preferential treatment to campaign donors and lobbyists. Under Koster’s new policy, he will no longer accept donations from individuals or companies that are the subject of an ongoing investigation or one that has been resolved in the prior three months, nor will he accept contributions from any lobbyists, attorneys, or law firms who represent them. He also announced he would no longer take gifts of any value from registered lobbyists.

Rhode Island – Patrick Lynch Lobbied Rhode Island Attorney General’s Office for Years but Never Registered
The Daily Journal – Michelle Smith (Associated Press) | Published: 11/17/2014

Since his tenure as Rhode Island’s attorney general ended, Patrick Lynch has lobbied his former office several times, but he has never registered with the state as a lobbyist. Lynch denies his communications constitute lobbying. But in emails sent by him and his assistant, Lynch pushed for actions on topics including online gambling and concerns about business practices by Google. Under state law, lobbying is defined as seeking to promote, oppose, or influence decisions or actions by the executive branch, including decisions by the attorney general’s office. Lobbyists are required  to register annually with the secretary of state’s office and file twice-yearly reports.

Virginia – McAuliffe’s Ethics Panel Recommends Changes on Gift, Disclosure, Conflict Rules
Richmond Times-Dispatch – Jim Nolan | Published: 11/14/2014

Virginia Gov. Terry McAuliffe’s government integrity commission agreed to preliminary recommendations that would limit the value of gifts lawmakers could receive but would also weaken disclosure rules. The commission proposed a ban on gifts exceeding $250, with the exception of trips cleared in advance by an independent board with the authority to investigate malfeasance and impose fines. Although lawmakers currently have to disclose gifts worth more than $50, under the commission’s proposal, that threshold would increase to $100. The commission must deliver its full recommendations to McAuliffe by December 1.

West Virginia – Ethics Commission Hires Stepto as Director
Charleston Gazette – Phil Kabler | Published: 11/13/2014

The interim executive director of the West Virginia Ethics Commission has been given the job permanently. Rebecca Stepto was chosen from among 15 applicants. Stepto became interim executive director after the commission fired Joan Parker without explanation.

Wisconsin – Did Senators’ Sendoff Violate Wisconsin Lobbying Law?
Wisconsin Reporter – M.D. Kittle | Published: 11/19/2014

The farewell reception for retiring Wisconsin Sens. Tim Cullen, Bob Jauch, and Dale Schultz was attended by a slew of prominent politicians, along with many lobbyists. The fact that the lobbyists paid the $10 entry fee appears to be a violation of state law.  The statute says “no candidate for an elective state office, elective state official, agency official, or legislative employee of the state may solicit or accept anything of pecuniary value from a lobbyist or principal.” There are exceptions to the rules, but they do not appear to apply in this case.

Wyoming – Lawmakers Punt on Campaign Disclosure Bill
Wyoming Tribune-Eagle – Trevor Brown | Published: 11/15/2014

A legislative panel has tabled a proposed bill that would tighten Wyoming’s campaign contribution laws. The proposal sought to force groups who attack or support candidates to disclose their donors. The current law says independent expenditures need to be reported to the state if it “expressly” advocates for the election or defeat of a candidate. The proposed bill said these groups would need to disclose their donors if they “directly or indirectly” advocated for the election or defeat of a candidate. But this caused worries by some that this definition would be overly broad.

State and Federal Communications produces a weekly summary of national news, offering more than 80 articles per week focused on ethics, lobbying, and campaign finance.

State and Federal Communications is proud to be a sponsor of the Professional Women in Advocacy Conference on November 19-21, 2014 in Washington, D.C.

We are also excited to announce Elizabeth Bartz will be moderating the Friday lunch discussion panel Been There, Done That: Words of Wisdom and Experience.

The amazing panel lineup includes Debra Cabral, CEO of Story Partners; The Honorable Nancy Johnson, Senior Advisor of Baker Donelson; and The Honorable Barbara Kennelly, Founder of Barbara Kennelly Associates.

City Council voted November 18 to remove portions of the city’s Campaign Reform Act. Ordinance 14-0926 allows candidates to deposit large contributions before obtaining donor information and to transfer contributions to other candidates. Both practices are currently allowed by the state, but prohibited by city law.

The ordinance would also adjust contribution limits on January 1 of odd numbered years, rounded to the nearest $100. Currently, limits are adjusted in even numbered years to the nearest $50.

The ordinance takes effect 31 days following approval by Mayor Robert Garcia.

The United States Court of Appeals for the Fifth Circuit upheld a Mississippi campaign finance disclosure law, reversing the district court’s ruling. The case, Justice v. Hosemann, focused on a law requiring persons or groups who spend more than $200 in support or opposition to a ballot initiative to register and report contributions and expenditures.

The district court ruled this unconstitutional, however, the Fifth Circuit, applying an “exacting scrutiny” standard, found the disclosure requirements were substantially related to the state’s interest of keeping the voters informed.

Plaintiffs in the case have until November 28 to seek a rehearing before the full Fifth Circuit or until February 12 to seek review by the U.S. Supreme Court.

On Monday, the Akron City Council rules committee voted to wait to make changes to the city’s campaign contribution limits.

Council President Gary Moneypenny’s proposal would have increased the limits for mayoral and council candidates by $100.

Former Councilman Warner Mendenhall, who promoted a petition for the original contribution limits in 1998, protested the proposed changes during the afternoon committee meeting.

The ethics panel recently assembled by Gov. Terry McAuliffe has assembled its recommendations for reforming laws covering gifts and conflicts of interest. The panel recommended a $250 gift limit to public officials as well as creating a new ethics review commission with the power to investigate complaints and hand out penalties for violations.

Other recommendations include requiring electronic filing of disclosure forms and prohibiting board and commission members from voting on matters affecting their interests.

The panel will formally submit its recommendations to the governor on December 1.

Lawmakers have prefiled a bill to clarify new ethics laws contained in a constitutional amendment passed by voters on November 4, 2014.

The amendment prohibits lobbyist gifts and corporate contributions, but the Ethics Commission needs further legislative authority to enforce the constitutional changes.

Democratic Rep. Warwick Sabin and Republican Sen. Jon Woods filed House Bill 1002 as a shell bill, without any specific proposals, to publicize the issue ahead of the session start date on January 12, 2015.

Photo of the Arkansas State Capitol by jglazer75 on Wikimedia Commons.

The Financial Industry Regulatory Authority (FINRA), a private, self-regulatory organization for U.S. securities firms, is proposing pay-to-play rules.

According to FINRA Regulatory Notice 14-50, posted on November 14, it is requesting comment on the proposed rules, which would regulate the activities of member firms engaging “in distribution or solicitation activities for compensation with government entities on behalf of investment advisers that provide or are seeking to provide investment advisory services to such government entities within two years after a contribution to an official of the government entity is made by the member firm or a covered associate.” The three specific rules for which FINRA is seeking comment are Rule 2271, Rule 2390, and Rule 4580.

A legislative committee has voted to table a draft bill to expand disclosure requirements for political independent expenditure groups. The bill would require a group to report an independent expenditure if it “directly or indirectly” advocated for the election or defeat of a candidate.

Current law requires reporting only if the expenditure “expressly” advocates for the election or defeat of a candidate. A majority of the Joint Corporations, Elections, and Political Subdivisions Interim Committee decided the language was overly broad.

The New York City Campaign Finance Board has proposed rules regulating political contributions by text message. The rules set forth the eligibility requirements for public funds matching of text message contributions, the process of record keeping requirements for such contributions, and requirements of contributors to certify their identities when making text message contributions.

The rules are open for public comment until November 20, 2014. A public hearing is scheduled for Monday, November 24, 2014 at 10:00 a.m.

On November 13, the official election results for American Samoa confirmed Republican Aumua Amata won the congressional race over the incumbent Democrat, Congressman Eni Hunkin Faleomavaega. According to SamoaNews.com, of the 10,246 votes cast, Amata received 4,306 to Faleomavaega’s 3,157 votes. Faleomavaega has served 13 terms as the territory’s delegate to the U.S. Congress.

Amata, who is the first female delegate from American Samoa, begins her term in the nonvoting position when the new Congress convenes on January 3, 2015.

Gov.-elect Tom Wolf, fresh off of a victorious first campaign for public office, is already taking steps to ensure the ethical conduct of his administration.

Wolf is requiring members of his transition team to sign a code of conduct including a ban on accepting gifts, one he plans to extend to the entire executive branch upon taking office.

The pledge also includes a requirement to disclose current and future conflicts of interest and a promise to not use their position for personal gain.

Photo of Gov.-elect Tom Wolf by Bruestle2 on Wikimedia Commons.