National:

Corporations, Advocacy Groups Spend Big on Ballot Measures

The Center for Public Integrity – Liz Whyte | Published: 10/23/2014

Voters may not know it, but the millions of dollars paying for ads on ballot measures they will consider on November 4 come from large companies and national advocacy groups. Many of the messages are tailored to defend or expand the business interests of companies such as Coca-Cola and Monsanto, yet few have their names in the ads. Through October 20, television ad spending on ballot issues totaled roughly $119 million. Four of the five most expensive ballot initiatives feature at least one corporate patron.

How Judicial Campaign Ads May Be Affecting Legal Decisions

Washington Post – Niraj Chokshi | Published: 10/22/2014

A new study found that the more ads aired during state Supreme Court campaigns, the more likely justices are to rule against criminal defendants, potentially from fear of appearing “soft on crime.” That finding is the result of an analysis of 3,000 state Supreme Court criminal appeals from 2008 to 2013 and is the latest in a string of recent research that suggests increased campaign spending, by pro-business groups in many cases, may be distorting judicial rulings. The report also shows outside spending in judicial races has been on the rise in recent years and such groups tend to buy more attack ads than candidates or parties.

Federal:

How Billionaire Oligarchs Are Becoming Their Own Political Parties

New York Times – Jim Rutenberg | Published: 10/17/2014

The U.S. Supreme Court’s Citizens United ruling in 2010 effectively blew apart the Bipartisan Campaign Reform Act’s (BCRA) restrictions on outside groups and their use of corporate and union money in elections. That same year, a related ruling from a lower court made it easier for wealthy individuals to finance those organizations. The result was a power shift, from the party bosses to the rich individuals who ran super PACs. Individuals with the wherewithal can start what are in essence their own political parties, built around pet causes or industries and backing politicians uniquely answerable to them. “Suddenly, we privatized politics,” said Trevor Potter, an election lawyer who helped draft BCRA.

Why House Republicans Alienate Hispanics: They don’t need them

New York Times – Nate Cohn | Published: 10/21/2014

Republicans would stand little, if any, chance of winning the presidency in 2016 if they do not do more to appeal to Hispanic voters. Yet the party’s congressional leaders show little sign of doing so, blocking an immigration overhaul and criticizing President Barack Obama for his plan to defer deportation for undocumented migrants. There is a simple reason that congressional Republicans are willing to risk alienating Hispanics: they do not need their votes, at least not this year. The GOP would probably hold the House, and still have a real chance to retake the Senate, if they lost every single Hispanic voter in the country.

From the States and Municipalities:

Alabama – Alabama House Speaker Mike Hubbard Indicted

USA Today – Brian Lyman (Montgomery Advertiser) | Published: 10/20/2014

Alabama House Speaker Mike Hubbard was indicted on 23 felony counts in a months-long investigation into allegations of political corruption. According to the indictment, Hubbard used his position as chairperson of the state Republican Party and as a House member to secure business for his companies. He is also accused of soliciting help with his business from some of the most prominent names in the state, including former Gov. Bob Riley, who is now a lobbyist. As part of the wider probe, Rep. Greg Wren pleaded guilty to a misdemeanor charge of using his office for personal gain and resigned his seat. Rep. Barry Moore pleaded not guilty to perjury and giving false statements, and his trial is scheduled to start soon.

California – Campaign Cash Crackdown OK’d

San Diego Union Tribune – David Garrick | Published: 10/21/2014

San Diego City Council members unanimously adopted a series of new campaign finance regulations. The rules would force PACs to disclose their largest contributors earlier in a campaign. They would also make it harder for a political committee to reproduce and distribute the exact same advertisements and campaign literature used by a candidate the committee supports.

Illinois – Reporter Resigns Following Rauner Complaint

Belleville News Democrat – Sara Burnett (Associated Press) | Published: 10/22/2014

Dave McKinney quit his job at The Chicago Sun-Times and accused the newspaper of bowing to pressure from gubernatorial candidate Bruce Rauner by removing him from the campaign beat. McKinney, a 19-year veteran of the newspaper who covered the state capital, said The Sun-Times reassigned him after the Rauner campaign accused him of a conflict-of-interest, which he denies. McKinney said the paper stopped assigning him to cover the gubernatorial campaign after publishing an article by him and two other reporters that alleged Rauner made bullying statements to a person who had threatened to sue one of his companies. The newspaper recently reversed a three-year policy of not endorsing political candidates; its lone endorsement of the 2014 campaign was of Rauner for governor.

North Carolina – Charter School Power Broker Turns Public Education into Private Profits

ProPublica – Marian Wang | Published: 10/15/2014

Businessperson Baker Mitchel has started four charter schools in North Carolina. His model for success embraces decreased government regulation, increased privatization, and, if all goes well, healthy profits. Every year, millions of public education dollars flow through his chain of four nonprofit charter schools to for-profit companies he controls. Over six years, Mitchell’s companies have taken in close to $20 million in fees and rent, some of the schools’ biggest expenses. The schools buy or lease nearly everything from companies owned by Mitchell. Unlike traditional school districts, at Mitchell’s charter schools there is no competitive bidding.

South Carolina – Donors Use Loophole to Pour Money into Governor’s Race

Charleston Post & Courier – Jeremy Borden | Published: 10/17/2014

Chowdary Yalamanchili, a Houston real-estate investor, has maxed out campaign contributions to South Carolina Gov. Nikki Haley for himself and at least 16 business entities. Haley’s opponent, state Sen. Vincent Sheheen, has received tens of thousands in donations from several different entities affiliated with the South Carolina Association for Justice, a trial lawyer’s trade group. In both cases, the organizations and people involved were within the state’s $3,500 maximum contribution limit but were able to give more by creating separate but similar business entities. Under South Carolina law, each business or corporate entity is considered a separate person, able to contribute the personal maximum of $3,500.

South Carolina – SC House Speaker Harrell Pleads to 6 Misdemeanor Finance Violations; Gets No Jail Time

The Daily Journal – Meg Kinnard (Associated Press) | Published: 10/23/2014

South Carolina House Speaker Bobby Harrell pleaded guilty to six counts of misconduct in office and will immediately resign his seat. Harrell was sentenced to six years in prison, which will be suspended as long as he completes three years of probation as part of the plea agreement. He also agreed to help prosecutors in any other investigations into wrongdoing involving the Legislature. He must pay a $30,000 fine and reimburse the state $93,958, and cannot to seek or hold public office for three years. Harrell was indicted in September on ethics and misconduct-related charges, including illegally using campaign money for personal expenses and filing false disclosure reports.

Vermont – Court Finds Republican Governors Association Violated Vermont Campaign Finance Law

Columbus Republic – Dave Gram (Associated Press) | Published: 10/22/2014

A Vermont judge ruled the Republican Governors Association (RGA) violated campaign finance law when it set up a PAC – Green Mountain Prosperity – that the state said was designed to get around a $2,000 campaign contribution limit. Green Mountain Prosperity was active during the close 2010 gubernatorial race won by Peter Shumlin over Republican Lt. Gov. Brian Dubie. The RGA argued Green Mountain Prosperity was an independent expenditure PAC, not coordinating with a party or campaign. The court found the RGA and Green Mountain Prosperity had no separate board, no separate staff, and no separate fundraising apparatus.

Washington – Some Lobbyists Play Key Role in Washington Campaign Finance

KUOW – Austin Jenkins | Published: 10/20/2014

Unions and business interests may be among the top political spenders in Washington this election year, but there is an influential group that does not necessarily show up in the campaign finance reports – lobbyists. So far in 2014, lobbyists have reported nearly $6 million in political donations. But that does not capture the whole picture. Lobbyists only have to report their clients’ contributions if they deliver the checks themselves, or if they are the ones who make the decisions about political giving. Simply advising clients on where to give and how much to give does not trigger the reporting requirement. That means this aspect of the lobbying business happens largely behind-the-scenes.

Wisconsin – Campaign Coordination Suit Filed in a Way to Get Favorable Judge

Milwaukee Journal Sentinel – Patrick Marley | Published: 10/17/2014

When a conservative organizations filed a lawsuit over Wisconsin’s campaign finance laws, its attorneys filled out court paperwork in a way that all but guaranteed they got a judge who has already ruled groups and candidates can work closely together. Two weeks after Citizens for Responsible Government Advocates filed its suit, U.S. District Court Judge Rudolph Randa issued an order limiting how the campaign finance law could be enforced, opening the door for groups and candidates to team up in the weeks before the November 4 election.

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.

The Independent Regulatory Review Commission (IRRC) approved an increase of the state’s biennial lobbyist registration fee from $200 to $300. The additional revenue will help cover the Department of State’s costs of maintaining the lobbyist registration and disclosure database.

The Department of State unsuccessfully sought increases on two prior occasions, to $700 and $400 every two years, but the IRRC believed this latest proposal was more reasonable.

The Pennsylvania Office of the Attorney General must approve the committee’s decision before it can be implemented for the 2015-2016 legislative session.

State and Federal Communications was the sole speaker sponsor of the Washington Area State Relations Group (WASRG) Annual Summit on October 21, 2014. The Summit took place at The Hamilton in Washington, D.C. and featured two political campaign consultants from each side of the aisle – Katie Packer Gage and Erica Prosser.

The off-the-record discussion focused on the upcoming midterm elections and how the elections might impact states as well as how the mid-terms will set the stage for the Presidential election in 2016. Both speakers agreed there have been surprises in some races around the country and with 2 weeks left, don’t discount a shocker or two yet to come.

WASRG is an association of DC-based government relations professionals with primary responsibility for representing their firms/companies/issues at the state and local level. State and Federal Communications has been a long-time supporter of the organization and its programming.

For information on joining WASRG, you can contact them at information@WASRG.com.

The Municipal Securities Rulemaking Board (MSRB) is seeking to create a rule limiting gifts to $100 for municipal advisors giving gifts to employees of entities engaged in municipal securities activities. The new rules for municipal advisors also would prohibit receiving reimbursement of entertainment expenses from the proceeds of an offering of municipal securities.

In a press release, MSRB Executive Director Lynnette Kelly said, “Restrictions on excessive gift-giving by municipal finance professionals are critical to ensuring that important state and local financing decisions are based on merit.” Comments on the new rules are being accepted through December 8, 2014.

Parliament and parts of the capital are emerging from a security lockdown following shootings at the National War Memorial and inside the Parliament building.

A soldier guarding the memorial has died from his injuries, as well as a gunman. Prime Minister Stephen Harper was addressing his Cabinet at the time, but left Parliament Hill safely.

The House of Commons is meeting today, Thursday, October 23, 2014, at 10:00 a.m.

Photo of the Parliament Centre Block by Adrijko Z. on Wikimedia Commons.

The Ethics Commission has announced two interested persons meetings on November 10 and November 13 to discuss possible changes to the city’s Campaign Finance Reform Ordinance (CFRO). Discussion at the meetings will be limited to potential changes to CFRO’s disclaimer and third-party reporting provisions.

Staff plans to distribute draft CFRO amendments to interested parties prior to the meetings.

Written comments regarding CFRO’s disclaimer and third-party reporting provisions can be sent to Jesse Mainardi at jesse.mainardi@sfgov.org or (415) 252-3100. R.S.V.P. by email at ethics.commission@sfgov.org.

City Council unanimously adopted new campaign contribution rules to monitor independent and primarily formed committees.

Ordinance 2015-37 requires earlier disclosure of large contributors and restricts the ability of a committee to reproduce and distribute campaign advertisements used by a candidate.

The ordinance becomes effective January 1, 2015, and is not applicable to the November 2014 election.

A constitutional amendment on the November ballot to allow the adjutant general to be appointed has the support of both the Republican and Democratic parties. The adjutant general oversees the state’s National Guard and is currently an elected position held by Bob Livingston, an Army major general.

The parties have jointly launched “Troops Leading Troops,” a social media project encouraging voters to support the amendment.

The adjutant general position will be appointed by the governor beginning in January 2019, if the amendment passes. Party leaders believe the measure would take politics out of choosing the adjutant general and ensure officeholders are adequately qualified.

State and Federal Communications is excited to be the Keynote Speaker Sponsor of the 2014 WASRG Summit on Tuesday, October 21.

The keynote speakers for the event are Katie Packer Gage, President and a Founding Partner of WWP Strategies and  Erica Prosser, Senior Campaign Consultant with The Pivot Group.

The 2014 WASRG Summit will be held at The Hamilton in Washington, D.C.

Today the Legislative Assembly of Ontario, Canada, will convene for the first session of the 41^st Parliament.

The assembly had adjourned its session with unanimous consent on July 24, 2014, in order to continue to work over the summer to address budget issues.

Photo of the Ontario Legislative Assembly Building by Andrijko Z. on Wikimedia Commons.

Elizabeth Bartz, president and CEO of State and Federal Communications, is offering her expertise today in Washington, D.C. at the Association of Government Relations Professionals Lobbying Certificate Program session on State Lobbying. Congratulations, Elizabeth!

One of the attendees gives this reaction on Twitter:

If you would like to know more about today’s training, here is a decription from the AGRP website:

The states are a breeding ground for new legislation and regulations that will affect your stakeholders and can potentially lead to federal action. Influencing legislators and policy makers at the state level can be a critical component to your overall lobbying efforts. In this upcoming AGRP LCP course, you will learn:

• How to successfully identify whether or not you need to engage at the state level
• Best practices in finding and working with state lobbyists
• How to evaluate your state lobbying efforts
• Making sure that your efforts are compliant with state rules and regulations

A by-election is scheduled in Saskatchewan for November 13, 2014, to elect a member of the Legislative Assembly from the Lloydminster riding.

The polls in Lloydminster will be open from 9 a.m. to 8 p.m. on election day.

Federal:

Campaign Finance Forty Years Later

New York Times; Staff –   | Published: 10/13/2014

Forty years after Congress passed the Federal Election Campaign Act, many of the provisions have been struck down as unconstitutional and U.S. Supreme Court rulings have paved the way for outside groups to raise and spend more money. The New York Times, in its “Room for Debate” feature, asked seven experts on the issue to give their opinions on the state of campaign finance reform today.

FEC Votes Suggest Gridlock Is Easing

Politico – Byron Tau and Kyle Cheney | Published: 10/9/2014

After some five years of ties and gridlock, the FEC approved several measures as part of a compromise brokered between its two newest members: Republican Chairperson Lee Goodman and Democratic Vice Chairperson Ann Ravel. Goodman and Ravel were both appointed at the same time by President Barack Obama in 2013, and they have forged a bipartisan alliance to help the commission function better. The FEC has long been a bastion of gridlock, and the recent votes have no practical impact on campaign finance laws. But the FEC’s action suggests further movement is possible on what has been seen as a hopelessly dysfunctional panel.

Secret Money Fueling a Flood of Political Ads

New York Times – Nicholas Confessore | Published: 10/10/2014

Fifty-five percent of broadcast advertising in the midterm elections has been paid for by groups that do not fully disclose their donors, compared with 45 percent from super PACs, which are required to file regular financial disclosures, according to an analysis by The New York Times. The preponderance of secretly funded advertising defies one of the assumptions of the U.S. Supreme Court’s Citizens United decision, which allowed outside groups to raise and spend more money, so long as they did not coordinate with candidates and parties. In the majority opinion, Justice Anthony Kennedy envisioned campaigns in which unlimited independent spending by unions and corporations would be paired with robust real-time disclosure.

From the States and Municipalities:

California – Kevin de León Becomes State Senate Leader in $50,000 Event

Los Angeles Times – Seema Metha and Patrick McGreevy | Published: 10/15/2014

Kevin de Leon was sworn in as the first Latino to head the California Senate in more than a century with an expensive soiree. The event at Walt Disney Concert Hall with an estimated price tag of $50,000 resembled a presidential inaugural more than the low-key affairs at the Capitol held by past Senate leaders. The California Latino Legislative Caucus Foundation, which receives donations from special interests seeking influence in the Legislature, picked up the tab for the event. Some suggested it was an inappropriate extravagance at a time when the state Senate is struggling to shake off the taint of corruption scandals and regain public trust.

Colorado – Citizens United Can Make Movie without Disclosing Donors, Court Says

Denver Post – Joey Bunch | Published: 10/14/2014

The 10th U.S. Circuit Court of Appeals ruled Citizens United can air a movie it has produced about Colorado politics without identifying its donors. Citizens United sued after Secretary of State Scott Gessler said the movie fell under Colorado’s campaign finance laws. A federal judge agreed the movie was electioneering that required disclosure. But Citizens United argued the film deserved the same free-speech protections as traditional media. The appeals court said while the movie is exempt from disclosure, the secretary of state’s office could require it for ads if the ads name a candidate and make a case for support or defeat.

Georgia – Once Again, a Carter Aims to Govern in Georgia

New York Times – Richard Fausset | Published: 10/15/2014

The most famous name in Georgia gubernatorial race belongs to state Sen. Jason Carter, grandson of former President Jimmy Carter. But rather than a referendum on the Carter legacy, the contest remains focused to a large extent on the record of incumbent Nathan Deal. One hurdle for Deal, said Merle Black, a political science professor at Emory University, is the possibility that conservative voters, soured by continuing ethics controversies tied to Deal’s 2010 campaign, may see him as “a candidate that they cannot get really excited about,” and sit out the election.

Illinois – Campaign Contribution Limits Off in Chicago Mayor’s Race

Chicago Tribune – John Byrne | Published: 10/14/2014

William Kelly gave $100,000 of his own money to his Chicago mayoral campaign. In doing so, he has also lifted the cap for campaign donations in the race. State law mandates that the $5,300 individual campaign contribution limit be lifted in a municipal race in one of two instances: a candidate donates at $100,000 or more to their campaign fund or an outside organization puts that much into a race to support or attack a candidate in the race.

Kentucky – Top Lobbyists Make More than Governor – a LOT More

Louisville Courier Journal – Tom Loftus | Published: 10/16/2014

Through the first eight months of 2014, Kentucky’s top lobbyists have made more money in fees than Steve Beshear will make in salary all year as governor. Lobbyist Bob Babbage, for example, has been paid $562,433 through August 31. Beshear is paid an annual salary of $138,012.

Missouri – Ethics Complaint Filed over Lobbyist Gifts to Missouri Lawmakers

Kansas City Star – Jason Hancock | Published: 10/15/2014

A complaint was filed with the Missouri Ethics Commission over a $3,000 dinner held at a Dallas steakhouse in August for five state legislators during the American Legislative Exchange Council’s annual convention. While five lobbyists reported the gifts to the commission as going to the individual lawmakers who attended, seven other lobbyists reported the gifts to “the entire General Assembly.” Missouri law states that a gift can be reported to a group – such as a committee, legislative chamber, or the entire Legislature – if all of the members of that group are “invited in writing.”

North Carolina – Former Charlotte Mayor Patrick Cannon Sentenced to 44 Months in Federal Prison

Charlotte Observer – Mark Washburn, Michael Gordon, Ames Alexander, and Rick Rothacker | Published: 10/14/2014

Former Charlotte Mayor Patrick Cannon was sentenced to 44 months in prison after admitting to using his public positions in North Carolina’s largest city for personal financial gain, including taking at least $50,000 in bribes. A nearly four-year investigation resulted in his arrest and resignation in March. Prosecutors said Cannon accepted bribes from a strip club owner and two undercover federal agents posing as investors in exchange for helping them navigate city government and zoning issues through his elected positions. Prosecutors said he took cash, paid travel to Las Vegas, and use of a luxury apartment from the undercover agents.

Oregon – Oregon’s Embattled First Lady Faces Ethics Probe over Business Activity

Washington Post – Jose DelReal | Published: 10/14/2014

After admitting to a sham marriage to help an immigrant remain in the U.S., Oregon Gov. John Kitzhaber’s fiancée said she lived on a property in 1997 that was intended to be used for a marijuana growing operation. Cylvia Hayes issued a statement saying the plan “never materialized” on the remote property. She is also under fire for earning money as a consultant from organizations seeking to influence state policy. Kitzhaber asked the Oregon Government Ethics Commission for a formal opinion on whether Hayes is subject to state ethics laws and, if so, whether she has broken them in the consulting matter. It is not clear how much damage the reports about Hayes could do to Kitzhaber’s re-election campaign.

Pennsylvania – Phila. Ethics Board Tightens Campaign-Finance Rules

Philadelphia Inquirer – Chris Hepp | Published: 10/15/2014

The Philadelphia Board of Ethics approved a series of amendments to the city’s campaign finance law, the most significant aimed at tightening restrictions on what constitutes a third party’s support of a candidate. The board approved an amendment to address the reuse of campaign materials produced by a candidate, but then picked up and distributed by an individual or PAC independent of the candidate. Under the new rule, such reuse would be considered an in-kind campaign contribution and would fall under the city’s donation limits.

Texas – An Ad with a Wheelchair Shakes up the Texas Governor’s Race

New York Times – David Montgomery | Published: 10/13/2014

Texas gubernatorial candidate Wendy Davis defended her campaign television ad that highlights opponent Greg Abbott’s use of a wheelchair, denying it exploits his disability while attacking his record. The 30-second ad begins with a shot of an empty wheelchair. It criticizes Abbot, the state’s attorney general, for receiving millions from a 1984 lawsuit after a falling tree injured his spine, then working to limit the legal rights of other victims. The spot has provoked a nationwide debate over its tone and the boundaries of political attack ads.

Washington – Ethics Panel Votes to Limit Number of Free Meals Lawmakers Can Accept from Lobbyists

Columbus Republic – Rachel LaCorte (Associated Press) | Published: 10/14/2014

Beginning January 1, Washington lawmakers could accept as many as a dozen free meals from lobbyists each year under a new rule adopted by the Legislative Ethics Board. The rule also defines a meal as a sit-down meal such as breakfast or lunch, even if the meal is served at a private residence. Receptions hosted by lobbyists would not count as a meal. The board planned to meet again before the end of the year to consider draft legislation to change the current law that only requires meals worth $50 or more to be reported to the state Public Disclosure Commission.

Wisconsin – Federal Judge Orders State to Stop Enforcing Anti-‘Coordination’ Law

WiscNews.com – Dee Hall | Published: 10/14/2014

U.S. District Court Judge Rudolph Randa blocked enforcement of a Wisconsin election law that is at the center of an investigation into Gov. Scott Walker’s 2012 recall campaign and more than two dozen conservative organizations. The ruling allows candidates to coordinate and work closely with independent groups that do not explicitly tell people how to vote. State prosecutors cited the coordination law in launching a so-called John Doe investigation into Walker’s campaign. A federal appeals court overturned a ruling from Randa in May that stopped the probe, but also said the issue needs to be resolved in state courts.

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.

The Pennsylvania House of Representatives approved a bill Wednesday to curtail pay-to-play politics in state contracts.

House Bill 201 prohibits state employees from evaluating contract proposals submitted by companies they worked for during the previous two years.

The legislation has been sent to Gov. Tom Corbett for his signature.

Photo of the Pennsylvania State Capitol by ThePlaz on Wikimedia Commons.