State and Federal Communications is now offering the free email update Lobby Comply News Roundup. We send it out each week, Monday through Thursday, similar to our publication News You Can Use which is sent out every Friday.

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A special election will be held for three state judicial seats recently vacated by sitting judges. The state Board of Elections set the special election to coincide with the general election on November 4, 2014.

The seats up for election are for the Court of Appeals, the Superior Court in Mecklenburg County, and the Superior Court in Alamance County.

Judicial races in North Carolina are nonpartisan, statewide races, where all judicial candidates appear on the statewide ballot with no party affiliation. Each race is determined by a plurality of votes.

Candidates must file with the Board of Elections by noon on August 8, 2014, in order to appear on the special election ballot.

The Florida Legislature will convene a special session at noon on Thursday, August 7, 2014. The special session is a result of a ruling by Judge Terry Lewis ordering the Legislature to revise its congressional district maps, specifically for the 5th and 10th Congressional Districts.

The Legislature could potentially adjourn as early as Monday, August 11, under a proposed schedule released by House Speaker Will Weatherford and Senate President Don Gaetz. However, the Legislature has until August 15 to revise the maps.

Photo of the Florida State Capitol by Jenn Greiving on Wikimedia Commons.

Q. Several employees from my organization engage in selling to the states.  Do they have any lobbyist registration or reporting requirements?

A. The answer to your inquiry depends on two things:  first, does the state regulate procurement lobbying, and second, is there an applicable bona fide salesperson exception to the registration requirement.  To determine whether a state regulates procurement lobbying, you can use our Executive Source Guide on Procurement Lobbying.  The regulation of individuals attempting to influence the selection of a vendor has increased significantly, and this trend is expected to continue.

In states where procurement lobbying is regulated, individuals engaging in sales activity may be exempt from the registration requirement where a bona fide salesperson exception exists.  For example, in Maryland, a regular full time employee of a vendor paid to engage primarily in sales activity on behalf of the vendor is exempt from lobbyist registration.  In New York, the exception even extends to sales agents with contracts to represent their clients for a period longer than six months.

Absent an exception, sales employees who meet the lobbyist registration threshold in a state regulating procurement lobbying will be required to register.

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

A state judge ordered the Florida Legislature to redraw two congressional districts by August 15, 2014. In Rene Romo, et al v. Ken Detzner, et al, Judge Terry Lewis of the Leon County Circuit Court in Tallahassee found the redistricting maps drawn by the Legislature for the 5th and 10th Congressional Districts to be created “in contravention of the constitutional mandates” found in Article III, Section 20 of the Florida Constitution.

In addition to a new redistricting map drawn by the Legislature, the secretary of state and the supervisor of elections must present a proposed special election schedule by August 15, 2014.

A hearing is scheduled August 20, 2014, where objections to the proposed map and special election schedule will be heard. The judge is still tasked with determining whether a special election is necessary before a new Congress takes office in January 2015. While it is not an option to use a newly drawn map for the upcoming November 4, 2014, elections, Lewis pointed to the possibility of pushing the general election date back to allow for a special election in 2014 for any affected districts.

Republican leaders are considering an appeal to the ruling. In the interim, Lewis’ ruling forces the Legislature to convene a special session to revise its map by the August 15 deadline.

July 1, 1993, is when it all began for State and Federal Communications. It is hard to believe it has been 21 years.

Last September, Jason Nazar wrote an article in Forbes magazine, 16 Surprising Statistics About Small Businesses. Here are a few of his points:

1. The Small Business Administration defines a small business as an enterprise having fewer than 500 employees.
2. There are 28 million small businesses in the United States. And, this does not include the 22 million self-employed people with no additional payroll or employees.
3. Since 1995, small businesses have generated more than 65% of the net new jobs.
4. Seven out of 10 new employers survive at least two years, half at least five years, a third at least 10 years, and a quarter stay in business 15 years or more.

I had to read that last one a few times because we have definitely exceeded it. I only review these articles when I am reflecting on another year in business. I hardly study it nor do I count where we stand in the percentage of small businesses who have reached milestones.

So, how do we keep things moving? Just a few things…

1. Do the next right thing.
2. Do what you said you would do.
3. Ask someone if you need help.
4. Remember Scar from The Lion King? Life’s not fair. Deal with it.
5. Most luck comes from general hard work.
6. It’s work…If it was a lot of fun, it would be called recess.
7. Admit mistakes when made…It really does make you feel better.
8. Bump in the road? Jump over it and keep moving forward.
9. Nothing short of right is right. [Hat tip to Bill Taylor, first director of Kent State University School of Journalism.]
10. If it is to be, it is up to me.

I am not Peter Drucker, Mary Follett, or Max Weber. I am not even Ben Stein…but I was raised by working parents with the Midwestern work ethic, which is basically the belief that hard work and perseverance, rooted in quiet humility, pays off in the long run.

We are up to the challenge. In 2014, we now have 38 people on staff to help you know what is important about lobbying, political contributions, and procurement lobbying in the United States, federal government, more than 250 municipalities, and Canada.

Thank you for being our clients, colleagues, vendors, and friends. Watch out for what’s next.

Thank you,

Elizabeth Z. Bartz
President and CEO
@elizabethbartz

State Sen. Johnny Key has vacated his seat in order to coordinate lobbying efforts for the University of Arkansas system as the associate vice president for university relations.

Gov. Mike Beebe will not call a special election to fill the empty seat due to the expected costs and logistical hurdles of replacing Key, whose term ends in January 2015.

Scott Flippo won the Republican nomination for the District 17 seat in June and will not have a Democrat challenger in the November election.

National:

Move on for DRPA to Reveal Vendors’ Political Donations

Philadelphia Inquirer – Paul Nussbaum | Published: 7/30/2014

The Delaware River Port Authority’s (DRPA) audit committee reviewed a proposal to restore public access to vendors’ political contributions. Under current rules, contractors doing or seeking business with the DRPA must disclose to the agency any political contributions made in Pennsylvania and New Jersey. But the DRPA withholds those reports from the public. New Jersey’s “pay-to-play” laws require contractors of state agencies to disclose their political contributions, which must be a matter of public record. But the DRPA, as a bi-state creation of Pennsylvania and New Jersey, is not bound by that “pay-to-play” law.

Federal:

Koch-Backed Seniors Group Low-Balling Election Spending?

The Center for Public Integrity – Michael Beckel | Published: 7/30/2014

A review by The Center for Public Integrity appears to show the 60 Plus Association appears to have vastly understated its level of election spending on federal tax filings. The organization told the FEC it spent about $4.6 million on political ads and “voter contact” phone calls endorsing or denouncing federal candidates during the three months prior to the 2012 election. But it reported spending $35,000 on “direct and indirect political campaign activities” during its entire 2012 fiscal year to the IRS. It did not count toward that amount $4 million in spending it reported separately as “educating seniors by influencing the election of political candidates.”

Mini-Mega Donors Dominate Downtown Giving

Roll Call – Kate Ackley | Published: 7/29/2014

Individual lobbyists typically do not reach into the highest levels of personal campaign contributions; that is an echelon billionaires dominate. But K Street’s elite “mini-mega” donors have gone past the former federal limit of $123,200 the U.S. Supreme Court threw out this spring in its McCutcheon decision. Now that lobbyists can give to all congressional candidates, as well as to party coffers and PACs, K Street’s biggest donors have to search for new ways of saying “no.” And sometimes that translates into a simple “yes.”

Outside Money Drives a Deluge of Political Ads

New York Times – Ashley Parker | Published: 7/27/2014

In the first full midterm election cycle where outside groups have developed a sophisticated infrastructure, the consequences are already becoming apparent: a harshly negative tone dictated by the groups and a nearly nonstop campaign season that could cause voters to tune out before Election Day. The impact can be especially magnified during midterm elections because outside organizations are not distracted by a presidential race and can allocate even greater resources to single congressional contests. In many cases, candidates in individual districts, or even states, are no match financially for groups that oppose their politics.

From the States and Municipalities:

Arkansas – Tough Road for Ethics, Term Limits Item

Arkansas Business Journal – Andrew DeMillo (Associated Press) | Published: 7/27/2014

A ballot proposal to restrict lobbyists’ gifts to lawmakers and loosen Arkansas’ term limits was touted as a compromise way to put major ethics reforms on the November ballot. But the proposed constitutional amendment is facing growing opposition focused primarily on its term limits provisions. The state Republican Party’s vote to oppose the ballot measure was the latest sign of trouble for a proposal that does not have an organized campaign on its behalf and turned into a political liability for several GOP lawmakers during the spring primary campaign.

Florida – Why Won’t Florida GOP Leaders Talk about Hunting Trips to King Ranch in Texas?

Tampa Bay Times – Michael Van Sickler and Craig Putnam | Published: 7/25/2014

Florida Gov. Rick Scott in February 2012 visited the historic King Ranch in Texas, one of North America’s premier hunting grounds. State House leaders have accepted similar excursions in the past three years. The trips, records indicate, were financed all or in part with contributions from Florida’s sugar industry, right down to the hunting licenses. A 2006 state law prohibits lawmakers from directly accepting gifts like free meals and travel, but a loophole still allows them to be feted like VIPs.

Illinois – Alderman Pushes through Watchdog Limits Week after Being Probed

Chicago Tribune – Bill Ruthhart and Hal Dardick | Published: 7/30/2014

Ald. Patrick O’Connor quickly pushed through an ordinance that limits the ability of the city council’s watchdog to investigate aldermen’s campaign finances, a week after that investigator received permission to open an ethics probe of O’Connor. The measure sponsored by O’Connor could hinder Legislative Inspector General Faisal Khan’s ongoing campaign finance probes, including the one of O’Connor.

Illinois – Illinois State Fair Managers Fined for Violating Gift Ban, Taking Free Beer Tickets

The Tribune; Associated Press –   | Published: 7/28/2014

Illinois State Fair Director Amy Bliefnick and former Du Quoin State Fair chief John Rednour, Jr. were fined by the Executive Ethics Commission for doling out hundreds of free beer tickets to top officials and other fairgoers in violation of the state’s ban on officials receiving gifts. The report noted Bliefnick has accepted more than $100 worth of free beer tickets each year since she became fair manager in 2005; she was fined $1,000. Rednour was penalized $5,000 after he admitted he solicited up to $8,000 in tickets from a vendor.

Massachusetts – 3 Guilty in Probation Case

Boston Globe – Milton Valencia | Published: 7/24/2014

Former Massachusetts Probation Commissioner John O’Brien was found guilty in a scheme to rig the agency’s hiring process to favor applicants who had the backing of powerful state legislators. O’Brien’s top aide, Elizabeth Tavares, was convicted of aiding and abetting the scheme, and a deputy, William Burke III, was found guilty of participating in a racketeering conspiracy. Prosecutors say O’Brien and his aides doled out jobs to the friends of state lawmakers over more qualified candidates. In return, prosecutors alleged, the legislators routinely boosted the Probation Department budget.

Massachusetts – Massachusetts Lawmakers OK PAC Disclosure Bill

Columbus Republic – Steve LeBlanc (Associated Press) | Published: 7/30/2014

The Massachusetts Legislature passed a campaign finance bill that would immediately increase transparency for super PACs. It also doubles how much money individuals can give to state candidates each year from $500 to $1,000, beginning in 2015. House Bill 4366 is expected to be signed into law by Gov. Deval Patrick.

New York – U.S. Attorney Warns Cuomo on Ethics Case

New York Times – Susanne Craig, Thomas Kaplan, and William Rashbaum | Published: 7/30/2014

U.S. Attorney Preet Bharara, who is investigating New York Andrew Gov. Cuomo’s closing of an anti-corruption commission, is now threatening to probe the administration for possible obstruction of justice or witness tampering. The warning came after several members of the panel issued public statements defending the governor’s handling of the Moreland Commission, which Cuomo created last year with promises of cleaning up corruption in state politics but shut down abruptly in March.

Texas – Prosecutor: Price committed ‘shocking betrayal of public trust’

Dallas Morning News – Ed Timms and Kevin Krause | Published: 7/25/2014

Longtime Dallas County Commissioner John Wiley Price has been charged with accepting nearly $1 million in bribes. Price’s chief of staff and two political consultants were also charged in a 13-count indictment. U.S. Attorney Sarah Saldaña said that during a decade-long scheme, two political consultants, Kathy Nealy and Christian Campbell, provided Price with $950,000 in money, cars, and land. Authorities allege that in exchange for the bribes, Price voted in favor of lucrative contracts that were proposed by the consultants’ clients.

Virginia – Robert McDonnell Trial to Cast Unflinching Light on Virginia Couple’s Friends, Marriage

Washington Post – Matt Zapotosky | Published: 7/28/2014

The trial of former Virginia Gov. Robert McDonnell and his wife, Maureen, has begun in federal court. They are accused of accepting more than $165,000 in gifts and loans from Jonnie Williams, the founder of a dietary supplements company, in exchange for helping to promote his products. Strident language in court filings point to a no-holds-barred battle that will pit the motives and credibility of the former first couple against Williams, who will testify for the prosecution under immunity. Defense attorneys have suggested the case is politically motivated and prosecutors have stretched the meaning of federal bribery laws to cover routine and long-accepted political courtesies.

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.

News You Can Use is a news service provided at no charge only to clients of our online Executive Source Guides, or ALERTS™ consulting clients.

New Jersey Gov. Chris Christie has called a special legislative session for Thursday, July 31. The session will convene at noon with Christie detailing his recommendations for amendments to the state’s bail system.

Christie is asking the legislators to consider a constitutional amendment allowing judges to deny bail to defendants considered dangerous or a flight risk, as well as legislation offering a non-monetary option for pre-trial release based on a risk assessment.

A constitutional amendment requires voter approval, and the amendment must pass both houses with 60 percent majorities by Monday, August 4, to make it on the ballot in November.

Gov. Jack Markell has called a special legislative session to convene October 8, 2014.

The purpose of the special session is to confirm a new state Supreme Court justice after the abrupt resignation of sitting Justice Carolyn Berger.

The nominee, Leo Shrine, currently sits on the bench of the Delaware Chancery Court.

The Legislative Assembly of New Brunswick convened July 29, 2014, for a one day special session to address pension changes for retirees.

The Assembly plans to amend the Pension Benefits Act to include retirees from Fraser Papers, a local pulp mill that filed for bankruptcy in 2009, in an increased pension payout scheme.

More than 1,200 retirees will benefit from the amendment.

A libertarian group has filed a lawsuit in federal court to remove the state’s aggregate limit on political contributions. The Liberty Group, on behalf of Dan and Carleen Brophy, sued Secretary of State Max Maxfield claiming the state’s aggregate limit of $25,000 per two-year cycle unconstitutionally restricts free speech.

The state has declined to follow Maryland and Massachusetts in issuing orders not to enforce state law following the U.S. Supreme Court’s ruling in McCutcheon v. Federal Election Commission.

In June, a majority of the Joint Corporations, Appropriations, and Political Subdivisions Interim Committee voted to order staff to draft a bill repealing a new limit for PAC contributions as well as the existing aggregate limit.

On July 24, the Ontario, Canada, Legislature adjourned its session with unanimous consent until October 20, 2014. According to The Record, legislators will continue to work over the summer to address budget issues. “Make no mistake, this is not an extended vacation that MPPs are going on, and certainly I will be working very hard over the coming weeks to prepare for all the implementation that comes with the passage of the budget,” said Premier Kathleen Wynne.

Photo of the Ontario Legislative Assembly Building by Antoien Cadotte in Wikimedia Commons.

Federal:

How to Disclose Your Lobbying While Keeping the Public in the Dark

National Journal – Ben Geman | Published: 7/22/2014

Some companies’ and advocacy groups’ quarterly lobbying disclosure forms provide highly specific lists of bills and topics they are working on. But other lobbying reports deploy language so vague that they reveal almost no information at all, undermining the efficacy of federal laws aimed at keeping the public abreast of how insiders are lobbying their elected officials. The rules require quarterly reports that list both broad categories, such as energy or trade, and “specific lobbying issues” within those categories. It is the line in the reports asking for specifics – Line 16 – that is often left very vague.

Leadership War Stymies Senate Mission

Washington Post – Paul Kane | Published: 7/20/2014

The U.S. Senate has approved so few bills this year, and so little else has gotten done, that many senators say they are spending most of their time on insignificant and unrewarding work. Senators say that they increasingly feel like pawns caught between Majority Leader Harry Reid and Minority Leader Mitch McConnell, whose deep personal and political antagonisms have almost immobilized the chamber. The two men so distrust each other, and each is so determined to deny the other even the smallest political success, that their approach to running the Senate has been reduced to a campaign of mutually assured dysfunction.

Senator’s Thesis Turns Out to Be Remix of Others’ Works, Uncited

New York Times – Jonathan Martin | Published: 7/23/2014

U.S. Sen. John Walsh (D-Mont.), a decorated veteran of the Iraq war, has made his military service a main selling point on the campaign trail. Still wearing his hair close-cropped, he says his time in uniform informs his views on a range of issues. But one of the highest-profile credentials of Walsh’s 33-year military career appears to have been improperly attained. An examination of the final paper required for his master’s degree from the Army War College indicates the senator appropriated at least a quarter of his thesis on American Middle East policy from other authors’ works, with no attribution.

From the States and Municipalities:

California – Political Shakeup Looms in California

Politico – Alexander Burns | Published: 7/20/2014

For decades, Democrats and Republicans in California have experienced statewide politics as an interminable waiting game, thanks to a gang of 70- and 80-somethings from the San Francisco Bay Area who have dominated government for a generation. Rising stars in both parties have come and gone, but the state’s chief power players have remained the same. Yet the buildup of talent on the Democratic bench means it is only a matter of time before the state witnesses a genuine free-for-all among younger officeholders.

Delaware – Delaware Governor Signs Campaign Finance Reform Bills into Law

Newsworks.org – Shana O’Malley | Published: 7/22/2014

Delaware Gov. Jack Markell signed a package of campaign finance and ethics reform bills. Among the measures, Senate Bill 186 requires LLCs and corporations that donate more than $100 to disclose the name and address of one “responsible party” who exercises control over the entity. House Bill 306 will establish a fee for lobbyists who fail to file their quarterly expense reports in a timely manner.

Illinois – New Rauner Attack Ad Relies on Made-Up Headlines

Chicago Tribune – Rick Pearson | Published: 7/24/2014

Bruce Rauner’s latest attack ad against Illinois Gov. Pat Quinn relies, in part, on independent news stories but features headlines that Rauner’s campaign made up and doctored to make them sound more critical. The ad overlays what the Rauner campaign calls “headlines” over television screens. Some of the headlines are correct. But in two cases, the ad makes up headlines that did not appear with the source cited, and in at least three other cases, headlines were shortened to buttress the campaign’s attack on Quinn.

Massachusetts – Super PAC Disclosure Bill Clears Massachusetts Senate, Protects Higher Union Limit

MassLive.com – Colleen Quinn (State House News Service) | Published: 7/23/2014

The Massachusetts Senate approved legislation designed to tighten reporting requirements for independent political expenditures, including those made by super PACs. Under Senate Bill 2264, corporations, labor unions, and political committees would be required to file a campaign finance report within seven days of making an independent expenditure, or within 24 hours if the expenditure is made within 10 days of an election. The Senate bill, like a version of the measure approved by the House, also doubles the amount an individual could donate to a candidate in a calendar year from $500 to $1,000. Lawmakers will now try to agree on a compromise bill.

New Hampshire – Can N.H.’s New Campaign Finance Rules Hold up in Court?

New Hampshire Public Radio – Brian Wallstin | Published: 7/21/2014

A bill awaiting New Hampshire Gov. Maggie Hassan’s signature requires 501(c)4s and other politically active nonprofits to register with the secretary of state’s office and report its receipts and expenditures. As reforms go, Senate Bill 120 is relatively modest: it only applies to nonprofits that spend more than $5,000 a year, and it does not ask them to disclose the identity of individual donors. But the new rules, which could affect the role tax-exempt groups play in the 2014 elections, are almost certain to trigger a political tug of war that could wind up in court.

New York – Cuomo’s Office Hobbled State Ethics Inquiries

New York Times – Susanne Craig, William Rashbaum, and Thomas Kaplan | Published: 7/23/2014

The commission set up by New York Gov. Andrew Cuomo to root out public corruption was hobbled almost from the outset by demands from Cuomo’s office. An examination by The New York Times found the governor’s office deeply compromised the panel’s work, objecting whenever the commission focused on groups with ties to Cuomo or on issues that might reflect poorly on him. Cuomo abruptly disbanded the commission halfway through what he had indicated would be an 18-month life. Federal prosecutors are now investigating the roles of Cuomo and his aides in the panel’s shutdown and are pursuing its unfinished business.

New York – JCOPE Donor-Disclosure Exemption Rejections Are Overturned

Albany Times Union – Casey Seiler | Published: 7/18/2014

A judicial hearing officer reversed the Joint Commission on Public Ethics (JCOPE) and held that the New York Civil Liberties Union and three other advocacy groups do not have to reveal their financial backers because doing so could put their supporters at risk. The hearing officer, former Judge George Pratt, said the JCOPE majority opinion was “clearly erroneous” and each of the groups had provided sufficient evidence to warrant an exemption from an ethics rule requiring organizations to disclose their funding sources.

Pennsylvania – Former Traffic Court judges Cleared on Main Charge

Philadelphia Inquirer – Jeremy Roebuck | Published: 7/23/2014

Four ousted traffic court judges in Philadelphia have been convicted of lying to authorities but cleared of most charges in a sweeping ticket-fixing case. A fifth judge and a businessperson were acquitted. An indictment last year portrayed the now-abolished court as a pit of patronage and corruption. Nearly the entire bench was charged with fixing tickets, sometimes in exchange for gifts or favors. The traffic judges were not lawyers but earned about $90,000 annually. Defense lawyers argued that giving insiders “consideration” was long a tradition at traffic court, and not deemed illegal.

Texas – Activist Fined $10,000 for Not Registering as Lobbyist

Houston Chronicle – David Saleh Rauf (San Antonio Express-News) | Published: 7/21/2014

The Texas Ethics Commission ordered conservative activist Michael Quinn Sullivan to pay the maximum fine for not registering as a lobbyist. Sullivan, president of Empower Texans, has been the subject of an extended investigation by the commission stemming from complaints that he failed to register as a lobbyist while working to influence the fate of legislation and the election of a House speaker. Sullivan will appeal the ruling to a state District Court, and argue the commission’s lobbyist registration law is unconstitutional and its enforcement infringes on the First Amendment.

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.

News You Can Use is a news service provided at no charge only to clients of our online Executive Source Guides, or ALERTS™ consulting clients.