Mayor Patrick Cannon resigned Wednesday amid allegations of federal public corruption and taking bribes. The allegations stem from Cannon, on several occasions, accepting over $48,000 of bribes from federal undercover agents posing as businessmen seeking city contracts.

If convicted on all charges, Cannon could face up to 50 years in prison and $1.5 million in fines.

Cannon held the mayoral office only four months; he was elected in November 2013.

Photo of the Charlotte, N.C. skyline by Riction on Wikimedia Commons.

On March 21, the Chicago Board of Ethics posted a summary of its reverse revolving door ruling on the city’s website. The ruling comes from a case brought before the board for the purpose of reviewing the conduct of a department director.

Chicago’s reverse revolving door ordinance prohibits employees or officials from personally participating in a decision-making capacity as to their immediate pre-city employers or clients for a period of two years after joining the city.

The board ruled an employee involved in a procurement process for the city violated the reverse revolving door provision even though he consistently avoided extraneous contact with personnel from his pre-city employer and from its umbrella organization. Simply scoring RFP responses in addition to training or meeting with employees from a pre-city employer or affiliate in the ordinary course of employment constitutes a minor violation.

Federal:

IRS Rule Would Limit Advocacy Over Nominees

USA Today – Gregory Korte | Published: 3/24/2014

The IRS says a nominee for the U.S. Supreme Court or Cabinet secretary should be considered a “candidate” for federal office and is drafting rules to limit how nonprofit groups advocate for or against such nominees. The change in defining a candidate is part of an effort by the Obama administration to clarify how much political activity certain nonprofits can engage in, following last year’s revelation that IRS agents had held up tax-exempt applications for tea party groups.

From the States and Municipalities:

California – FBI: California Sen. Leland Yee took bribes, trafficked guns

Sacramento Bee – Laurel Rosenhall and Jeremy White | Published: 3/26/2014

California Sen. Leland Yee has been charged with conspiring to traffic in firearms and public corruption as part of a major sting operation spanning the Bay Area. A criminal complaint alleges Yee did favors for an undercover FBI agent in exchange for campaign contributions. Prosecutors said Yee also offered to facilitate a meeting between the undercover agent and an arms dealer, and discussed the types of weapons the agent might need.

Colorado – Colorado Marijuana Regulators Switching Sides to Work for Industry

Denver Post – John Ingold | Published: 3/21/2014

At least three officials at the state agency in Colorado that regulates marijuana businesses have found work doing cannabis industry consulting after leaving the department. The officials say they adhered to ethics rules in switching from the regulators to the regulated, and an expert said the moves are not necessarily a conflict, noting such public-to-private switches are common in many regulated industries. But the moves do show the increasing legitimization of the marijuana industry. And they have caused concern among remaining state officials, who say the moves could send the wrong message to the public.

Connecticut – Philly Flyers Owner: His $10,000 to CT Dems not ‘pay to play’

Connecticut Mirror – Mark Pazniokas | Published: 3/24/2014

Three self-reported complaints were recently accepted by the State Elections Enforcement Commission, all in relation to campaign contributions that donors fear could run afoul of Connecticut’s sweeping ban on donations from contractors. A one-year ban on additional state business is a potential penalty for a principal or employee making a prohibited contribution. Connecticut law places the burden for knowing the statute on the donors, not the campaigns or political committees that are the recipients.

Florida – GOP Insiders Incensed, Fascinated by Tirades of Gov. Rick Scott’s Fundraiser

Tampa Bay Times – Steve Bousquet | Published: 3/26/2014

Billionaire Mike Fernandez was co-finance chairperson of Florida Gov. Rick Scott’s campaign, gave $1 million to his re-election effort, and helped raise much more by opening two of his homes to wealthy Republican donors. Fernandez sat near the first family at the State of the State speech before everything fell apart with his resignation followed by leaked e-mails filed with frustration and armchair quarterbacking, a rare public display of campaign dirty linen.

Nevada – Conservative Group to Pay Fine in Nevada 2010 Case Involving Sandoval Ads

Reno Gazette-Journal – Sandra Chereb (Associated Press) | Published: 3/26/2014

A group that ran hundreds of television advertisements supporting Brian Sandoval for governor in 2010 has agreed to a $40,000 fine for failing to register as a PAC in Nevada. The Alliance for America’s Future, a Virginia group that supports Republican candidates, and the office of Secretary of State Bob Miller reached a settlement on his suit against the organization. Miller said the civil fine is the largest ever imposed for a campaign finance violation in Nevada.

New Jersey – Christie Bridge Scandal: Internal report clears governor, calls for Port Authority restructuring

Newark Star Ledger – Ted Sherman | Published: 3/27/2014

New Jersey Gov. Chris Christie did not know of his top aides’ plan for a politically motivated traffic jam on the George Washington Bridge, according to lawyers hired by the Christie administration to investigate the “Bridgegate” scandal. But while clearing Christie and his senior staff, the report urged the appointment of a chief ethics officers within the governor’s office. And it called for a restructuring of the Port Authority of New York and New Jersey.

North Carolina – Mayor Cannon Resigns after Corruption Arrest

Charlotte Observer – Mark Washburn, Michael Gordon, and Jim Morrill | Published: 3/27/2014

Patrick Cannon resigned as mayor of Charlotte, North Carolina after he was arrested on public corruption charges, as federal law enforcement officials alleged he accepted a trip to Las Vegas, use of a luxury apartment, and more than $48,000 in cash in exchange for helping smooth out municipal obstacles for undercover agents posing as investors. Cannon had been in the mayor’s office only since early December.

Pennsylvania – With Lawmakers Caught on Tape Accepting Cash, Fresh Calls for Reform

Philadelphia Inquirer – Craig McCoy and Angele Couloumbis | Published: 3/24/2014

State senators are proposing bills to ban Pennsylvania lawmakers from accepting cash gifts. Lloyd Smucker said the legislation was prompted by stories about an aborted sting investigation by the attorney general’s office that captured five Philadelphia politicians, including four state legislators, accepting cash or money orders on tape. Smucker said he was surprised the state allows lawmakers to accept cash gifts, as long as they report them on their annual financial-disclosure forms.

Rhode Island – Few Clues about What Prompted Federal, State Authorities to Raid Rhode Island Statehouse

Columbus Republic – Michelle Smith (Associated Press) | Published: 3/25/2014

Federal and state authorities have refused to comment on the target of their investigation since a raid on Rhode Island Rep. Gordon Fox’s office and home. Fox resigned as House speaker the next day and said he would not seek re-election, but he did not directly address the probe. In his legal practice, Fox performed loan closings and that work got him into trouble with the state Ethics Commission after he failed to report more than $40,000 for work he did for a Providence economic development agency.

Texas – Conservative Activist Michael Quinn Sullivan Fights Lobbyist Label

Dallas Morning News – David Barer | Published: 3/24/2014

Michael Sullivan is the brash leader of the influential Empower Texans, and he is in a battle with the state Ethics Commission over his influence at the Capitol. The commission could stamp Sullivan as a lobbyist and hem in his political activities, but first, its members want to know the sources of the money that props up his nonprofit corporation. Critics contend Sullivan relies on “dark money,” leaving Texans unable to determine who funds his group’s legislative ratings and endorsements, which can affect Republican primaries.

Wisconsin – Gov. Walker Signs Several Bills into Law

WBAY; Associated Press – | Published: 3/27/2014

A bill signed into law by Wisconsin Gov. Scott Walker allows lobbyists to start making personal donations the day candidates can circulate petitions for office, which is April 15. Under the previous law, they could not make any donations until June 1. In passing the measure, Republican lawmakers backed off from another change that would have let lobbyists hand over campaign checks from others during the legislative session.

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.

Gov. Scott Walker has signed into law a bill allowing lobbyists to start making campaign donations to candidates seven weeks earlier than previously allowed. 2013 Wisconsin Act 153 allows a lobbyist to personally make political contributions as early as April 15 of a general election year, the same day candidates can circulate petitions for office.

The Act also increases the registration threshold from $25 to $300 for committees making or receiving political contributions.

The Act is effective on March 29, 2014, one day following publication.

The Miami-Dade Commission on Ethics and Public Trust closed its inquiry into the lobbying activities of soccer star David Beckham, concluding he did not violate county lobbying law by failing to register as a lobbyist. In the summer of 2013, Beckham toured sites for a potential Major League Soccer stadium with Miami-Dade Mayor Carlos Gimenez and other county officials. Beckham and Mayor Gimenez also had dinner with the financier of Beckham’s proposed soccer venture.

The Commission cleared the site visits as a “meet and greet” function exempt from lobbyist registration rules, and other meetings with the mayor were characterized as the county lobbying Beckham to bring a soccer franchise to Miami. The Commission noted meetings with public officials do not necessarily constitute lobbying and determined Beckham was not lobbying Mayor Gimenez at their dinner meeting.

With the Major League Soccer plan gaining momentum, only individuals who are properly registered as lobbyists should be meeting with county officials to influence decisions in the matter going forward, according to the Commission’s report.

Photo of David Beckham courtesy of The Democratic Alliance on Wikimedia Commons.

State Senator Leland Yee has been arrested on public corruption charges as part of several arrests made by the FBI.

Yee represents District 8, which includes San Francisco and San Mateo County. The former San Francisco supervisor and 2011 mayoral candidate is currently running for secretary of state.

Yee was honored last week by the Northern California chapter of the Society of Professional Journalists for his efforts last year to maintain the requirements of the California Public Records Act.

Photo of State Senator Leland Yee courtesy of Tim Bartel on Wikimedia Commons.

The Rhode Island House of Representatives elected Rep. Nicholas A. Mattiello (D-Dist. 15, Cranston) its speaker yesterday.

Mattiello replaces Gordon Fox, who resigned on Saturday, March 22, following police raids of Fox’s office and home on Friday. According to his press release, Mattiello, a representative for the last seven years, announced to his fellow lawmakers that “[t]here will be a much greater emphasis on collaboration in the decision-making process among everyone in this room, Democrats and Republicans alike.”

Today the Rhode Island House of Representatives may seek to elect a new speaker to replace Gordon Fox, who resigned on Saturday. Fox abruptly resigned following a police raid of his home and office by state and federal officials on Friday. No reason for the search has yet been given by authorities or Fox.

Fox said he will remain as a representative in the House but does not intend to seek another term.

Photo of the Rhode Island State Capitol courtesy of Garrett A. Wollman on Wikimedia Commons.

The Legislature adjourned the fiscal session sine die on March 19, 2014.

Legislators successfully passed the $4.7 billion budget and overrode Gov. Mike Beebe’s line-item veto of a tax break for oil and gas drillers.

The General Assembly adjourned sine die late Thursday, March 20, 2014.

Any bills not passed by the adjournment deadline cannot become law. A pay-to-play bill to require contribution disclosure by state contractors was among the unpassed bills.

Senate Bill 310 would have required contractors to disclose contributions exceeding $5,000 on the same schedule as other campaign finance reports.

Philadelphia passed ethics legislation providing a dollar limit on gifts during its March 20 meeting. The legislation prohibits all city officers and employees from receiving gifts worth more than $99 in a calendar year from any donor, and bans all cash gifts.

A number of exceptions are provided, including food and beverage at meetings and non-ticketed receptions.

The bill is expected to be signed by Mayor Nutter. Board of Ethics Executive Director Shane Creamer said the Board will begin working on new gift regulations once the bill is signed.

The Assembly has passed a bill to widen the ability of lobbyists to provide campaign contributions.

Senate Bill 655 allows a lobbyist to deliver or personally make political contributions as early as April 15 of a general election year, the same day candidates can circulate petitions for office.

Currently, lobbyists must wait until June 1 to make contributions. The bill now goes to Gov. Scott Walker.

Federal:

Lobbyist Faces $5 Million Fine for Allegedly Failing to File Disclosure Reports

Washington Post – Holly Yeager | Published: 3/18/2014

Federal prosecutors said Alan Mauk and his firm, Alan Mauk Associates, did not file required quarterly lobbying reports at least 13 times between 2009 and 2013. In addition, they are charged with failing to file semi-annual reports on political contributions on at least 13 occasions, also in violation of the Lobbying Disclosure Act. The law carries a fine of up to $200,000 for each violation. House and Senate officials notified Mauk at least 22 times about the missing reports, according to the civil complaint.

RNC Chair Calls for Reversal of ‘Soft Money’ Ban to Finance Conventions

Washington Post – Matea Gold and Philip Rucker | Published: 3/18/2014

The U.S. Senate approved a House bill that takes $126 million over 10 years out of the Presidential Election Campaign Fund and authorizes it for use in pediatric medical research. White House Press Secretary Jay Carney said President Barack Obama would sign the legislation. Republican National Committee Chairperson Reince Priebus said political parties should be able to raise “soft money” to pay for their presidential nominating conventions now that federal funding for the quadrennial events will be cut off.

From the States and Municipalities:

Arizona – Former Fiesta Bowl Chief Sentenced to 8 Months in Prison

Arizona Daily Star – Jacques Billeaud (Associated Press) | Published: 3/13/2014

John Junker, the former chief executive officer of the Fiesta Bowl, was sentenced to eight months in federal prison for violating campaign finance laws. He became the sixth person to be sentenced in a scheme in which bowl employees were reimbursed for donating federal, state, and local candidates. The scandal also exposed the lavish spending and perks the Fiesta Bowl heaped on lawmakers and employees, though no charges were filed involving those perks.

California – Highlighting Democratic Losses, Republicans Block California Campaign Finance Bill

Sacramento Bee – Jeremy White | Published: 3/17/2014

California Democrats’ loss of a legislative supermajority stifled their push to change the state’s campaign finance law. Senate Bill 27, which fell one vote short of passage, sought to lift the veil on outside campaign spending by compelling nonprofits to identify their donors if contributions hit certain thresholds in a given election cycle.

California – San Diego’s Ethics Commission Seeks to Rein in Independent Committees

inewsource.org – Joe Yerardi | Published: 3/14/2014

The San Diego Ethics Commission proposed reforms that would restrict the activities of independent political committees in the city. They are permitted to raise unlimited funds from nearly any source but are prohibited from coordinating strategy with candidates’ campaigns. At a recent meeting, the first in a months-long process, the commissioners debated the suggested changes.

Colorado – Investigation: Lobbyists skipped $90K in fines to Colorado

KUSA – Brandon Rittiman | Published: 3/15/2014

Lobbyists in Colorado are required to register and file disclosures stating who is paying them and how much. State law says the fines are charged to the person who registers as a lobbyist, not the organization they work for. This means groups can keep on influencing public officials even if some of the lobbyists who worked for them owe thousands of dollars to the state.

Georgia – Ordinary Citizens Find They Can Have an Impact at the Capitol

Augusta Chronicle – Walter Jones (Morris News Service) | Published: 3/19/2014

Many regular citizens show up at the Capitol and attempt to influence Georgia lawmakers. Angela Bean and Jan Horne, for example, spent a lot of time at the statehouse this year for various causes. “We know our being here is important; if people are going to come down here, the legislators know we’re representing [others] who aren’t here that feel the same way,” said Bean.

Indiana – Lawmaker with Industry Ties Worked to Nix Nursing Home Ban

The Post Tribune – Tom LoBianco (Associated Press) | Published: 3/17/2014

On the surface, Indiana Rep. Eric Turner had nothing to do with a last-minute decision to defeat a proposed nursing home moratorium that would have harmed his son’s business. But behind the scenes, Turner played a much different role, urging fellow Republicans during a private caucus meeting to defeat the moratorium. Last year, The Associated Press reported Turner had pushed a measure to benefit a client of his daughter, who is a lobbyist.

Maryland – Actor Kevin Spacey to Promote ‘House of Cards’ Tax Credit at Annapolis Reception

Washington Post – John Wagner | Published: 3/20/2014

Gerard Evans, an Annapolis-based lobbyist for “House of Cards,” has invited the entire Maryland General Assembly to a local wine bar on March 21 to meet the show’s star, Kevin Spacey. The event is scheduled just a few days after the Senate voted to increase a tax credit that rewards production companies that choose to film in the state. The House has yet to act on the bill. “House of Cards” has been the biggest beneficiary of the credit in recent years.

New Jersey – Attorney General to State Police: Stop photographing protesters at Chris Christie town halls

Newark Star Ledger – Jenna Portnoy | Published: 3/19/2014

After criticism that the action violated civil liberties, New Jersey Attorney General John Hoffman banned state police from taking photographs of hecklers and protesters at Gov. Chris Christie’s now-weekly town hall meetings. At least a dozen people were thrown out of a recent town hall after shouting criticisms at Christie. They complained about how his administration is distributing federal recovery money and questioned the governor’s role in a political payback scandal orchestrated by his aides.

North Carolina – Tweak to N.C Law Protected Duke Energy’s Coal Ash Pits

Greensboro News and Record; Associated Press –   | Published: 3/17/2014

In 2013, a coalition of environmental groups sued to force Duke Energy to clean up nearly three dozen leaky coal ash dumps spread across North Carolina. The company turned to the state Legislature for help. Documents and interviews show how Duke’s lobbyists prodded Republican lawmakers to tuck provision in a regulatory reform bill that allowed Duke to avoid any costly cleanup of contaminated groundwater leaching from its unlined dumps toward rivers, lakes, and the drinking wells of nearby homeowners.

Ohio – Cincinnati Lobbyist Pleads Guilty Over Unreported Gifts

Cincinnati Enquirer – Chrissie Thompson | Published: 3/19/2014

John Rabenold, vice president of governmental affairs for Axcess Financial, which runs Check ‘n Go, will be sentenced on May 1 for a pair of misdemeanor counts of filing false lobbying disclosure forms. Authorities said Rabenold failed to disclose meals and gifts he provided to Ohio lawmakers on his filings in 2010, as the payday lenders tried to hold back efforts to pass tighter regulations on the industry.

Ohio – Ohio Case Gets Serious and Satirical Attention before Supreme Court Hearing

Coshocton Tribune – Deirdre Shesgreen (Gannett Newspapers) | Published: 3/17/2014

Weighing in against an Ohio statute that makes it a crime to lie about a candidate, the Cato Institute filed a brief co-written by humorist P.J. O’Rourke with the U.S. Supreme Court using satire to poke fun at what it calls an “Orwellian” law that violates the First Amendment. The justices will not decide whether the law is constitutional but instead examine whether the plaintiffs have standing. Experts say that question, while seemingly technical, is important. And the underlying issues, touching on politics and free speech, are even more vital.

Pennsylvania – City Council Approves Ban on Cash Gifts to Phila Officials

Philadelphia Inquirer – Claudia Vargas and Tony Graham | Published: 3/20/2014

The Philadelphia City Council passed an ordinance that bans the city’s officers and employees from receiving any cash from a person seeking business or official action, while allowing non-monetary gifts up to $99 in value annually per donor. Mayor Michael Nutter is expected to sign the bill into law. City Board of Ethics Executive Director Shane Creamer said his agency would start working on new regulations once Nutter signs the measure.

Pennsylvania – Kane Shut Down Sting That Snared Phila. Officials

Philadelphia Inquirer – Angela Couloumbis and Craig McCoy | Published: 3/16/2014

Pennsylvania Attorney General Kathleen Kane shut down an operation that allegedly showed a handfull of Philadelphia politicians, including four members of the city’s state House delegation, accepting bribes and unreported gifts. The sting has not led to charges against the accused, according to The Philadelphia Inquirer. The report shows the probe seems marred with political head-butting between Kane and state prosecutor Frank Fina, who led the investigation. Kane called the investigation poorly conceived, badly managed, and tainted by racism, saying it had targeted African Americans.

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.

The Board of Supervisors resumed a series of discussions on ethics legislation introduced last year by City Attorney Dennis Herrera and Board of Supervisors President David Chiu. Ordinance 130374 would amend the Campaign and Governmental Conduct Code to expand the definition of lobbyist and require lobbyists to complete training online.

The lobbying exemption for contractors and their attorneys would be limited to in-house officers and employees.

Nonprofit staff would be required to register if they make five or more contacts with covered officers in a single month. Outside consultants communicating with public officials regarding contract bidding and negotiating would be subject to the registration and reporting requirements of lobbying.

The ordinance has been substituted and assigned to the Government Audit and Oversight Committee.