Jim Sedor, Author at State and Federal Communications

August 23, 2013 • Written by Jim Sedor

News You Can Use Digest – August 23, 2013

Here are highlights from the latest edition of News You Can Use:

News You Can Use

Federal:

The Hill – Bernie Becker | Published: 8/21/2013

U.S. Rep. Chris Van Hollen (D-Md.) and watchdog groups filed a lawsuit challenging the IRS’ interpretation of a law that governs whether groups qualify for tax-exempt status as so-called social welfare organizations. The suit addresses one of the main concerns that surfaced with the recent IRS targeting controversy: differences between federal law and IRS rules on eligibility for 501(c)(4) candidates.

U.S. Lawmakers Travel the World on Lobbyists’ Tab

Reuters – Richard Cowen | Published: 8/19/2013

Lately, the number of privately financed trips for federal lawmakers offered by corporate interests, lobbyists, universities, and foreign governments have been rising. Trips this year total 1,363, at a cost to the hosts of $3.2 million. Congress clamped down on such travel in 2007 after disgraced lobbyist Jack Abramoff’s influence-peddling scandal.

From the States and Municipalities:

Arkansas – After Ethics Fine, Paul Bookout Resigns from Legislature

Arkansas Business Journal; Associated Press – | Published: 8/21/2013

Sen. Paul Bookout resigned his seat in the Arkansas Legislature on the same day a special prosecutor was assigned to investigate his campaign finances. His resignation came days after the state Ethics Commission fined and reprimanded the veteran lawmaker for converting thousands of dollars in political contributions to his personal use.

California – Filner Could Be Out by Friday

San Diego Union Tribune – Craig Gustafson and Mark Walker | Published: 8/21/2013

A tentative deal has been reached in the sexual harassment lawsuit against San Diego Mayor Bob Filner that is likely to oust him from office. City Attorney Jan Goldsmith announced the plan after three days of settlement talks, but said he could not divulge any details until the proposed resolution is approved by the city council, which could happen on August 23. Filner has been under siege for weeks amid allegations he repeatedly sexually harassed women.

California – Hansen Revealed as Arena Petition Backer

Sacramento Bee – Dale Kasler and Tony Bizjak | Published: 8/17/2013

Weeks after billionaire Chris Hansen lost a bid to move the Sacramento Kings to Seattle, he made an undisclosed donation to a group trying to defeat plans to build a new facility for the National Basketball Association team in California. The Fair Political Practices Commission said the money was used to gather signatures for a ballot initiative designed to put to a citywide vote the council’s planned $258 million subsidy for a downtown arena.

Maine – For Maine Governor, Issue Is What They Said He Said

New York Times – Katharine Seelye and Jess Bidgood | Published: 8/20/2013

Maine Gov. Paul LePage denied he said President Barak Obama “hates white people.” Two Republican lawmakers said they heard the governor make the comment during a state Republican Party fundraiser. The problem for LePage, as even some of his allies acknowledge, is whether or not he made this particular comment, he has made so many other blunt assertions that while one more may not matter, the accumulation of such comments could.

Massachusetts – In Mass., Political Lobbying a $100M-a-Year Industry

Lowell Sun – Steve LeBlanc (Associated Press) | Published: 8/19/2013

In 2005, there were just over 800 lobbyists registered in Massachusetts. By 2012, that number had soared to more than 1,600. In part, the increase is due to a change in the definition of a lobbyist. The broadened definition, prompted by a 2009 ethics law, forced many individuals who had avoided the label to officially register.

New York – Nonprofits Are Balking at Law on Disclosing Political Donors

New York Times – Thomas Kaplan | Published: 8/20/2013

New York has emerged as a central battleground for efforts to mandate greater disclosure. Two years after a law was enacted that required tax-exempt groups lobbying state government to reveal where they got their money, a growing number of nonprofit organizations are seeking exemptions, arguing their donors could be endangered if their names were released to the public.

New York – Utility Officials Fined on Freebies

Albany Times Union – James Odato | Published: 8/15/2013

A year after national grid paid the New York Public Service Commission (PSC) $1.67 million to settle charges of providing illegal gifts to state regulators, the utility has agreed to pay $25,000 to settle the same charges with the Joint Commission on Public Ethics (JCOPE). The PSC fined National Grid for violating the public service law; JCOPE penalized the utility for violating state lobbying law.

Ohio – Ohio Ethics Chief: Kasich made clean company break

Miami Herald – Julie Carr Smyth (Associated Press) | Published: 8/15/2013

Ohio Ethics Commission Chairperson Merom Brachman said there is no need for an ethics probe of Gov. John Kasich’s relationship to a company that received hundreds of thousands of dollars in state development tax credits. Brachman, noting the commission is “anxious to not become a political theater,” said data provided by the governor shows conclusively there is no conflict-of-interest to investigate.

Pennsylvania – State Officials’ Free Gala Tickets Lead To Discrepancies in Ethics Reports

WITF – Mary Wilson | Published: 8/19/2013

The way Gov. Tom Corbett and a few state lawmakers treated free tickets to a Philadelphia soiree shows a wide variety of interpretations of Pennsylvania’s ethics law. Last year, the Barnes Foundation threw a gala celebrating its new museum and gave some legislators and members of the administration free entry. For other patrons, tickets were $5,000 each. State law requires gifts of such a value to be publicly disclosed.

South Carolina – Haley’s Attorneys Tried to Get Ethics Charges Dropped

The State – Adam Beam | Published: 8/15/2013

Emails between the South Carolina Ethics Commission and Gov. Nikki Haley’s attorney show she agreed to pay a fine and end allegations over campaign donors’ missing addresses only after irritated commissioners nearly took an agreement off the table and called a public hearing. Haley agreed to pay $3,500, reimburse the ethics agency $2,000, and forward money from eight donors, totaling nearly $4,200, to the Children’s Trust Fund.

Tennessee – Democrats Missing from Panels to Rule on Ethics Complaints against Haslam

Knoxville News Sentinel – Tom Humphrey | Published: 8/17/2013

A former state Democratic Party chairperson filed complaints with the Tennessee Ethics Commission and the Registry of Election Finance, contending Gov. Bill Haslam violated the law by not disclosing his personal payments to lobbyist and political operative Tom Ingram. The commission and registry currently have Republican majority membership because of unfilled vacancies in one case, because Haslam has left a seat designated for a Democrat empty since March.

Virginia – Attorneys for McDonnells to Meet with Prosecutors as Key Phase Opens in Gifts Probe

Washington Post – Rosalind Helderman and Carol Leonnig | Published: 8/19/2013

Attorneys for Virginia Gov. Robert McDonnell and his wife met with federal prosecutors over the gifts scandal that has dominated state politics. The meetings open a critical phase of the investigation, timed to help prosecutors decide over the next few weeks whether to file charges, according to two people with knowledge of the investigation.

Jim Sedor 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.

August 16, 2013 • Written by Jim Sedor

News You Can Use Digest – August 16, 2013

Here are highlights from the latest edition of News You Can Use:

News You Can Use

National:

Many Ex-Governors Work as Lobbyists, Consultants

USA Today – Fredreka Schouten | Published: 8/11/2013

A USA Today review found ten of the 32 governors who have left office since 2011 now work for trade associations or consulting and lobbying firms that allow them to help clients navigate government agencies. Several former governors said they have unique expertise about the way government operates, but that does not mean they are wielding undue influence on behalf of their clients.

Federal:

A Former Engine of the G.O.P., the Town Hall Meeting, Cools Down

New York Times – Jeremy Peters | Published: 8/12/2013

Though Republicans in recent years have harnessed the political power of town hall meetings, people from both parties say they are noticing a decline in the number of such events. With memories of angry protests still vivid, it seems one of the unintended consequences of a tea party movement that thrived on such open, often confrontational interactions with lawmakers is there are fewer members of Congress now willing to face their constituents.

Jesse L. Jackson Jr. Sentenced to 30 Months in Prison

Washington Post – Ann Marimow | Published: 8/14/2013

Former U.S. Rep. Jesse Jackson, Jr. (D-Ill.) was sentenced to two-and-a-half years in prison after pleading guilty to scheming to spend $750,000 in campaign funds on costly personal items, including a $43,350 gold-plated Rolex watch. His wife, former Chicago Ald. Sandra Jackson, was sentenced to a year in prison for filing joint federal income tax returns that understated the couple’s income.

From the States and Municipalities:

California – Spokesman for California Assembly Speaker John Perez Wears Many Hats

Sacramento Bee – Laural Rosenhall | Published: 8/8/2013

Steven Maviglio is on a short-term contract as a media consultant to California Assembly Speaker John Pérez that ends when the legislative session concludes in September. Through his Forza Communications firm, Maviglio also works for private-sector clients; some are advocacy groups who have paid him to promote their bills moving through the Legislature.

Florida – Palmetto Bay Lobbyist Tipped Off FBI to Miami-Dade Mayors, Lobbyists Arrested in Corruption Probe

Miami Herald – Patricia Mazzei, Jay Weaver, and Charles Rabin | Published: 8/10/2013

A two-year investigation culminated recently with the arrests of Miami Lakes Mayor Michael Pizzi and lobbyist Richard Candia, along with Sweetwater Mayor Manny Maroño and his friend and business partner, lobbyist Jorge Forte. Sources said lobbyist Michael Kesti acted as an informant in the probe because he wanted to bring the FBI’s attention to influence-peddling among a network of Miami-Dade County lobbyists and mayors.

Indiana – Charges Dismissed against Former Indiana Utility Regulator David Lott Hardy

Indianapolis Star – John Russell | Published: 8/12/2013

A judge threw out four felony counts of official misconduct against Indiana’s former top utility regulator. David Lott Hardy’s behavior as Indiana Utility Regulatory Commission chairperson in connection with the Duke Energy ethics scandal was not criminal, said Marion Superior Court Judge William Nelson. But Nelson scolded Hardy for “betraying the trust” of Indiana citizens.

Mississippi – All Expenses Paid? Some Lawmakers Request Reimbursement for Lobbyist-Funded Treks

Jackson Clarion-Ledger – Geoff Pender | Published: 8/10/2013

Last summer, 19 state lawmakers attended a conference sponsored by the Mississippi Consumer Finance Association. Although some lawmakers described the event as all expenses paid, four House members also filed for reimbursement totaling more than $2,300 on their state expense accounts. Yet disclosure reports show lobbyists paid a total of $5,600 for the four legislators.

Missouri – Campaign Finance Lawsuit Pits Mega-Donor Rex Sinquefield against Missouri Pro-Life Groups

Kansas City Star – Jason Hancock | Published: 8/12/2013

A retired investment executive who has given millions of dollars to campaigns has filed a lawsuit challenging a proposed ballot measure seeking to establish campaign contribution limits in Missouri. Rex Sinquefield argues the limits would infringe on constitutional rights to free speech and free association. The suit contends the proposed caps are so low they inhibit effective advocacy, particularly as political campaigns become more costly.

Nevada – Nevada’s Secretary of State Moves to Clarify State Ethics Law

Las Vegas Sun – Andrew Doughman | Published: 8/8/2013

Nevada Secretary of State Ross Miller is seeking clarification from state agencies about how they have defined “gift.” Elected officials must disclose gifts worth more than $200, but Miller said they often fail to follow the law because it does not define a gift. Absent a statutory definition, a body of legal opinions could at least provide some guidance for what elected officials must disclose if they want to obey to the law, said Miller.

New Jersey – Birdsall Trustee Files Two Lawsuits to Recoup Millions in Losses

Asbury Park Press – Kathleen Hopkins | Published: 8/12/2013

The court-appointed trustee of Birdsall Services Group, the politically connected engineering firm that pleaded guilty earlier this year to making illegal campaign contributions in New Jersey, filed a federal lawsuit to recoup money the company spent on the legal expenses of former employees, alleging the payments were illegally authorized. Edwin Stier also sued 21 former top company officials, claiming their actions contributed to the firm’s collapse and caused its value to plummet.

New York – Ethics Panel Survey Launched

Albany Times Union – Rick Karlin | Published: 8/14/2013

A survey asking recipients to comment on the effectiveness of New York’s ethics law was sent to members of the state Legislature, leaders of watchdog groups, general counsels to state agencies, lobbyists, and academics. It asks about the Joint Commission on Public Ethics’ successes and shortcomings. A report on the survey will be issued later this year.

North Carolina – Voting Bill Signed; Legal Challenges Start

Charlotte Observer – Jim Morrill | Published: 8/12/2013

North Carolina Gov. Patrick McCrory signed a sweeping voting reform bill recently. Civil rights groups immediately filed lawsuits in federal court challenging the statute. The law also raises campaign contribution limits from $4,000 to $5,000 and indexes them to inflation. Starting October 1, lobbyists will not be able to pass along any donation to a candidate; the old law only prohibited the delivering of bundled contributions.

Pennsylvania – Lobbyists Fight State Fee Increase

Pittsburgh Post-Gazette – Kate Giammarise | Published: 8/12/2013

A proposal by the Pennsylvania Department of State would increase the biennial fee paid by registered lobbyists from $200 to $700. State officials say the increase is needed to maintain an online database and defray other costs of administering the lobbyist disclosure law. But many nonprofit groups say the increase will hurt their ability to discuss policy with lawmakers and watchdogs are concerned it could lead to less transparency.

Texas – White Male Democrats in Texas Legislature Are Nearly Extinct

Dallas Morning News – Gromer Jeffers, Jr. | Published: 8/11/2013

Next year’s elections could leave five or fewer white male Democrats in the Texas House. As Democrats put their emphasis on turning out more women and Hispanic voters and Republicans try to maintain advantages in the state’s small towns and rural areas, the trend, decades in the making, is expected to continue.

Jim Sedor 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.

August 9, 2013 • Written by Jim Sedor

News You Can Use Digest – August 9, 2013

Here are highlights from the latest edition of News You Can Use:

News You Can Use

Federal:

All the D.C. Donors, Now Put Your Checks Up

Politico – Byron Tau | Published: 8/3/2013

Campaign fundraising in Washington, D.C. has moved from staid receptions to high-profile concerts and sporting events. Most often, these events take place in a rented skybox at the Verizon Center paid for by a corporate PAC or a congressional campaign. Fundraising professionals say pairing a campaign fundraiser with a big event like a Beyoncé concert helps attract more attention from potential donors and ultimately brings in bigger contributions.

Republican Says E-mails Could Mean FEC-IRS Collusion

CNN – Dana Bash and Alan Silverleib | Published: 8/6/2013

FEC Vice Chairperson Donald McGahn said an investigator from his agency contacted Lois Lerner, the IRS employee at the center of the controversy over the alleged targeting of conservative groups. He said the contact was made to discuss the status of one such political advocacy group. Shortly after Lerner was contacted, the IRS sent a questionnaire to the American Future Fund, said McGahn. He said such contact was “probably out of the ordinary” and FEC members had not given staff permission to reach out to the IRS.

From the States and Municipalities:

California – L.A. County Won’t Sell Bonds to School Bond Campaign Donors

Los Angeles Times – Dan Weikel | Published: 8/6/2013

Los Angeles County Treasurer Mark Saladino said his office will no longer do business with securities brokers that make political contributions to school bond campaigns. The restriction applies to monetary donations, non-monetary contributions, and pre-election services, such as polling, voter outreach, and consulting.

Connecticut – Bills May Die, but Concepts Don’t

CTNewsJunkie.com – Hugh McQuaid | Published: 8/7/2013

Connecticut’s Legislative Research Office found at least 89 provisions that began this year in one bill, only to be signed into law under another. The number comes from an annual bill tracking report the office puts together after each legislative session. It documents instances when a concept became law in a manner other than the traditional legislative process.

Florida – Miami Lakes and Sweetwater Mayors ‘Stung’ by FBI for Taking Alleged Kickbacks

Miami Herald – Jay Weaver, Christina Veiga, and Joey Flecha | Published: 8/6/2013

The FBI arrested Miami Lakes Mayor Michael Pizzi and Sweetwater Mayor Manuel Maroño on bribery-related charges. Prosecutors said Pizzi and lobbyist Richard Candia were involved in a kickback and bribery scheme over federal grants in Miami Lakes and Medley, where Pizzi is town attorney. An indictment claims Maroño and lobbyist Jorge Forte were involved in a kickback and bribery scheme over grants for Sweetwater, where Maroño has been mayor since 2003.

Massachusetts – Galvin Faulted on Rules for Lobbyists

Boston Globe – Michael Levenson | Published: 8/7/2013

Massachusetts Secretary of State William Galvin was ordered to cover more than $100,000 in legal fees for a group of lobbyists who challenged his interpretation of the state’s revamped ethics laws. A judge found Galvin overstepped his authority by trying to force lobbyists to report every time they spoke to a legislator or state official, even casual, chance meetings.

New Hampshire – Ethics Committee: Special E-ZPasses don’t violate gift limits for N.H. lawmakers

Concord Monitor – Ben Leubsdorf | Published: 8/5/2013

E-ZPasses given to New Hampshire lawmakers do not violate ethics rules. Rep. Frank Sapareto had asked the Legislative Ethics Committee if they counted as a perk with a value in excess of the $25 limit on gifts to legislators.

New York – Citing Irregularities, City Board Rejects Public Money for Liu’s Campaign

New York Times – David Chen | Published: 8/5/2013

New York City Comptroller John Liu was denied about $3 million in public matching funds in his bid for the Democratic mayoral nomination after the Campaign Finance Board said it found evidence of possible “serious and pervasive” violations. In May, Liu’s former campaign treasurer and a fundraiser were convicted of trying to subvert the city’s campaign finance system with straw donors to obtain matching funds.

North Carolina – Video Shows Lawmakers Dancing on NC House Floor

WCNC – Ben Thompson | Published: 7/31/2013

A video shows a Republican lawmaker and an aide dancing on the North Carolina House floor near the end of the legislative session. One headline reads “NC House Dances with Joy over its Accomplishments,” and is accompanied by an editorial criticizing lawmakers.” The video shows a man and woman dancing, while another woman plays a fiddle. But some say the headlines and descriptions of the clip are misleading.

Oklahoma – Outdated Software Plagues Oklahoma Ethics Commission

The Oklahoman – Michael McNutt | Published: 8/3/2013

Financial information about campaigns and lobbyist spending posted on the Oklahoma Ethics Commission’s Web site is not accurate because of software glitches. Commission Executive Director Lee Slater said he will be ask lawmakers for funds next year to buy a new software system but until then, visitors to the site will have to put up with a system in which data posted by some candidates and lobbyists randomly does not show up.

South Carolina – Lobbyists Wined, Dined Lawmakers 95 Times

The State – Amanda Coyne | Published: 8/4/2013

During the 2013 legislative session, special interests hosted 95 breakfasts, luncheons, dinners, or receptions for South Carolina legislators and others. The meals and receptions regularly cost nearly $6,000 apiece. At least two held during the last legislative session cost far more, one almost $17,000 and another $20,000.

Tennessee – Nashville Lobbyist Murphy and Associates Faces Ethics Audit

The Tennessean – Chas Sisk | Published: 8/6/2013

An audit said a lobbyist receiving 10 percent of the state funding provided to the Tennessee Disability Coalition – more than $64,000 in one year – may violate a law banning lobbyist contingency fees. An attorney for lobbyist Jennifer Murphy disputes the contention and said even if the contractual arrangement was a contingency fee, it dates from 2002, four years before the prohibition was enacted as part of an ethics reform package.

Virginia – Donor Jonnie Williams, Star Scientific Are Cooperating in Probe of Gov. Robert McDonnell

Washington Post – Carol Leonnig and Rosalind Helderman | Published: 8/5/2013

Sources said Star Scientific Chief Executive Officer Jonnie Williams, Sr. has turned over personal financial records and sat for interviews in which he provided firsthand accounts of gifts and more than $120,000 given to Virginia Gov. Robert McDonnell and his family members since 2011. The cooperation is an ominous sign for McDonnell, suggesting federal prosecutors are focused on trying to build a potential criminal case against him.

West Virginia – Judge Ends Cap on Contributions to Indie PACs

Charleston Gazette – Kate White | Published: 8/7/2013

U.S. District Court Judge Thomas Johnston signed an order that strikes down struck down state laws limiting contributions to independent PACs. The $1,000 limit still applies to donations made directly to candidates and their campaign committees, PACs that contribute directly to candidates, and political parties.

Jim Sedor 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.

August 2, 2013 • Written by Jim Sedor

News You Can Use Digest – August 2, 2013

Here are highlights from the latest edition of News You Can Use:

News You Can Use

National:

Heiresses Apparent: Daughters take their turn for the political dynasty

Washington Post – Emily Heil | Published: 7/26/2013

Perhaps more than any previous year, the 2014 midterm campaigns feature a wave of daughters eager to embrace their fathers’ political legacies while forging their own political futures. And at a time when the 2016 presidential field appears likely to include both the son of a prominent politician (Rand Paul) and the wife of a president (Hillary Clinton), it is no surprise that daughters are forming a political class of their own.

State Republican Parties Mired in Dysfunction

The Associated Press – Steve Peoples | Published: 7/25/2013

Several state Republican leaders have been forced out or resigned in recent months, and many state parties face financial problems and skeptical national leaders. The conflicts highlight the tug of war over the GOP’s future as national leaders work to improve the party’s brand. At the same time, the dysfunction raises questions about the GOP’s ability to coordinate political activities in key battleground states ahead of the midterm elections.

Federal:

Next Citizens United? McCutcheon Supreme Court Case Targets Campaign Contribution Limits

Huffington Post – Paul Blumenthal | Published: 7/31/2013

Electrical engineer and budding political donor Shaun McCutcheon, now joined by the Republican National Committee, is bringing the biggest campaign finance case before the U.S. Supreme Court since the controversial 2010 Citizens United decision. If the justices rule in their next term for McCutcheon, it would mark the first time the court had found a federal contribution limit unconstitutional and would open the door for even more money to flood the political system.

Women Lobbyists May Be Worth More

National Journal – Elahe Izadi | Published: 7/30/2013

While men outnumber women on K Street, an analysis by LegisStorm shows individual lobbying contracts held by women are worth more on average than those held by men. The study, one of the first of its kind, offers a window on Washington’s roughly $3 billion lobbying industry and how it is evolving.

From the States and Municipalities:

Alabama – Corporations Can Make Unlimited Campaign Contributions

Gadsden Times – Philip Rawls (Associated Press) | Published: 8/1/2013

Companies can now give unlimited amounts to candidates in Alabama. The end of the $500 limit on August 1 means Alabama will become the fifth state with no cap on campaign donations. Lobbyist Bob Geddie said some companies may contribute directly to candidates now that the limit is off, but most will keep donating to PACs. He said if their corporate name ends up on a candidate’s campaign finance report, they know others will call for donations.

Arizona – Supporters Ask Judge to Block Higher Campaign Limits

Arizona Daily Sun – Howard Fischer (Capitol News Services) | Published: 7/31/2013

The Arizona Citizens Clean Elections Commission asked Maricopa County Superior Court to block an increase in state campaign contribution limits. The state Supreme Court declined to consider the commission’s special-action lawsuit in the matter. The plaintiffs were allowed to start over by filing the lawsuit anew with a lower court.

California – Cupid’s Work Gets Complicated as California Lawmaker Dates Lobbyist

Sacramento Bee – Laurel Rosenhall | Published: 7/31/2013

State Assemblyperson Brian Maienschein is dating Carolyn Ginno, a lobbyist for the California Medical Association. While the romance does not violate any rules, it has raised concerns among some good government groups. Watchdogs said Maienschein should step down from committees that routinely vote on bills the association lobbies, such as the health and business panels.

Colorado – Chieftain Newsroom Execs Sign Giron Recall Petitions, Blasted for ‘Ethics Conflict’

Huffington Post – John Tomasic (Colorado Independent) | Published: 7/30/2013

A local activist group reported Pueblo Chieftain General Manager Ray Stafford and at least two other newsroom executives signed petitions to have Colorado Sen. Angela Giron recalled over her support for gun-control laws. The group said the signatures amount to a breach of professional ethics. Stafford also wrote Giron an e-mail that many viewed as a threat.

Illinois – Scandal Puts Focus on ‘Toothless’ Ill. Ethics Law

Chicago Tribune – Kerry Lester (Associated Press) | Published: 7/30/2013

The Legislative Ethics Commission has agreed to look into whether Illinois House Speaker Michael Madigan and two of his fellow Democrats tried to use clout to interfere with personnel matters at Metra, the Chicago-area transit agency. But the committee is working under a law that critics say is too vague on what constitutes a conflict-of-interest and lacks sufficient enforcement powers.

Indiana – Tony Bennett, Former Indiana School Superintendent, Changed Top GOP Donor’s School’s Grade

Huffington Post – Tony LoBianco (Associated Press) | Published: 7/29/2013

Tony Bennett, the then-head of the Indiana department of Education, pressed for changes to the state’s school grading formula to help a campaign donor’s charter school. According to e-mails obtained by The Associated Press, Bennett demanded the changes when it appeared a charter school backed by influential Republican donor Christel DeHaan was going to earn a “C” in the state’s grading system.

Missouri – In Missouri, Campaign Donors Fund Phones, Sports Tickets, Golf Balls

St. Louis Post-Dispatch – Elizabeth Crisp | Published: 7/31/2013

A St. Louis Post-Dispatch analysis shows lawmakers and statewide officials often turn to their campaign funds to pay for a wide range of personal expenses that, they argue, are associated with their official or campaign duties. Meals, travel, and fundraising events – including costs associated with popular golf tournaments – were among the major expenses for candidates and elected officials.

New York – Exemption Rules under Review

Albany Times Union – Jimmy Vielkind | Published: 7/30/2013

The Joint Commission on Public Ethics is putting off a decision on applications from lobbying groups hoping to shield their donors from public view as it debates tweaks to its regulations. Emergency rules that will become permanent in August allow the commission to exempt donors that face “harm, threats, harassment, or reprisals” if it became known they were contributing to a cause. Commissioners agreed to have a public discussion on amending the exemption, possibly in early September.

North Carolina – McCrory Not Up On Voter Law He Signed

Charlotte Post – Michael Biesecker (Associated Press) | Published: 8/1/2013

North Carolina Gov. Pat McCrory signed into law a bill that makes extensive changes to the state’s election law, even though he admitted he was not familiar with key provisions on preventing voter fraud. At a press conference, the governor did single out the section of the bill that prohibits lobbyists from passing campaign donations directly to lawmakers.

South Carolina – State House for Sale: SC’s unregistered lobbyists profit in ‘gray area’

The State – Jamie Self | Published: 7/27/2013

Many companies and groups in South Carolina seek state money each year. To press their cases, they employ hundreds of lobbyists. But not everyone trying to influence lawmakers registers with the state as a lobbyist as required by the ethics law.

Tennessee – Ethics Panel Stalls on Tom Ingram Lobbying Hearing; Dismissal Vote Falls Short

Knoxville News Sentinel – Tom Humphrey | Published: 8/1/2013

A vote to scuttle penalties against prominent political operative Tom Ingram fell short in the Tennessee Ethics Commission. The panel voted three-to-one to drop the cases against Ingram, his colleague Marcille Durham, and client Hillsborough Resources for failing to register to lobby for three years on behalf of a coal company seeking to mine on public lands. That is one vote short of the minimum needed to pass, so members agreed to hear the cases again at a September meeting.

Jim Sedor 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.

July 12, 2013 • Written by Jim Sedor

News You Can Use Digest – July 12, 2013

Here are highlights from the latest edition of News You Can Use:

News You Can Use

National:

Gay Couples Could Face Different Campaign Money Rules across States

Rothberg Political Report – Nathan Gonzalez | Published: 7/11/2013

The Democratic Senatorial Campaign Committee asked the FEC to grant same-sex couples and candidates the same rights as married opposite-sex couples in the aftermath of the U.S. Supreme Court’s ruling that struck down the Defense of Marriage Act. One expert said the agency is not likely to pass its own regulation on spouses. “The FEC is likely to conclude that it’s governed by state law, [and] then you will have different fundraising rules for different states,” said former FEC Chairperson Michael Toner.

Majority of Americans Say Corruption Has Increased

U.S. News & World Report – Allie Bidwell | Published: 7/10/2013

According to a new survey by corruption watchdog Transparency International, more than a quarter of people worldwide paid a bribe when dealing with public services in the past 12 months. In the U.S., 60 percent of people said corruption has increased over the last two years, while only 10 percent said it has decreased by any amount. Overall, many countries found people do not trust the institutions they typically rely on to combat crime and corruption.

Federal:

Contractor Lobby Info: Virtually private

Politico – Byron Tau | Published: 7/7/2013

Disclosure on federal intelligence and procurement matters is opaque and confusing, stemming from loopholes in the nation’s lobbying transparency laws. Critics say the current rules are outdated and riddled with exemptions, and in need of revision.

Critics Question the IRS’ New ‘Fast-Track’ Path to Tax-Exempt Status

Lancaster Eagle-Gazette – Deidre Shesgren | Published: 7/10/2013

The IRS’s acting chief, Danny Werfel, unveiled a new process as one part of the agency’s effort to address the scandal in which agents used inappropriate criteria to flag some tax-exempt applications for extra scrutiny. Werfel said any group that has been waiting for tax-exempt status for more than 120 days will be able to self-certify. Those who are eligible will have to swear at least 60 percent of their organization’s resources will be devoted to a “social welfare” purpose and they will not spend more than 40 percent of their time or money on political activities.

Deadlock by Design Hobbles Election Agency

Boston Globe – Christoher Rowland | Published: 7/7/2013

The impression of weakness at the FEC has escalated in recent years as Republicans commissioners united in the belief that the agency had been guilty of overreach and have moved to soften enforcement, block new rules, and limit oversight. According to critics, the FEC has been rendered toothless.

From the States and Municipalities:

California – Brown’s Ethics Aide Erin Peth to Become Executive Director of FPPC

Los Angeles Times – Patrick McGreevy | Published: 7/5/2013

Erin Peth was selected to be the new executive director of the California Fair Political Practices Commission. Peth will step down from her post as deputy legal affairs secretary in Gov. Jerry Brown’s office, which she has held since 2011. Before that, she served as deputy attorney general while Brown was the state attorney general.

Georgia – Georgia Insurance Regulators Accept Meals, Golf from Industry

AccessNorthGa.com – Ray Henry (Associated Press) | Published: 7/10/2013

State Insurance and Safety Fire Commissioner Ralph Hudgens and two of his staff members accepted meals and a round of golf from Gould Hagler, executive director of the Independent Insurance Agents of Georgia. After being questioned about the spending, Hudgens said his staff will pay for their own entertainment at future events and begin following a new law limiting lobbyist spending before it legally takes effect in January.

Maine – State’s ‘F’ Spurs New Ethics Laws for Maine Officials

Morning Sentinel – Naomi Schalit and John Christie (Maine Center for Public Interest Reporting) | Published: 7/9/2013

A grade of “F” in a national report that measured the states’ levels of accountability and transparency in government spurred Maine lawmakers to enact reforms. The bills signed by Gov. Paul LePage include stricter reporting requirements for statements of economic interests filed by legislators and slowing the “revolving door” at the Capitol.

Nebraska – In the World of Lawmakers and Lobbyists, Who Has the Power?

Lincoln Journal-Star – JoAnne Young | Published: 7/7/2013

Some in Nebraska are asking if lobbyists exert too much influence on the legislative process. They contend that outside of committee hearing – where the public can see what is happening – lobbyists are able to advance their clients’ interests behind closed doors.

New York – NY Corruption Panel Has More Teeth, Will it Bite?

Seattle Post-Intelligencer – Michael Virtanen (Associated Press) | Published: 7/8/2013

Some have questioned whether the commission appointed by New York Gov. Andrew Cuomo will meet its mandate to root out corruption in the state. David Grandeau, the former director of New York’s defunct lobbying commission, does not believe this new temporary group will be any more effective than the Commission on Public Integrity and its successor, the Joint Commission on Public Ethics. Grandeau compared the panels to the Peanuts character Charlie Brown – always having the football pulled away at the last minute.

New York – Spitzer Rejoins Politics, Asking for Forgiveness

New York Times – Michael Barbarao and David Chen | Published: 7/7/2013

Former Gov. Eliot Spitzer, who stepped down in 2008 over a prostitution scandal, will enter the race for run for New York City comptroller. He said he believed New Yorkers would be open to his candidacy. “I’m hopeful there will be forgiveness, I am asking for it,” said Spitzer.

North Carolina – Arrests Mount as NC Legislative Session Nears End

Charlotte Observer – Michael Biesecker (Associated Press) | Published: 7/7/2013

Observers say some of the 700 people charged with the misdemeanors while protesting at the North Carolina General Assembly were exercising their First Amendment rights, behaving no differently than protesters from past years who were not arrested. That has raised concerns about whether Republican leaders who took control of the Legislature in 2010 are directing more aggressive enforcement against citizens who disagree with their agenda.

Pennsylvania – Pittsburgh Mayor’s Profile Wanes with Feds’ Probe

Minneapolis Star Tribune – Joe Mandak (Associated Press) | Published: 7/7/2013

Pittsburgh Mayor Luke Ravenstahl has gone from appearing on “Late Night with David Letterman” to facing a grand jury investigation. His staff members have testified about whether Ravenstahl sanctioned a slush fund that led to the police chief’s resignation and indictment, and whether the mayor instructed bodyguards to alter their time cards.

Tennessee – Gov. Haslam Struggles to Meet Pilot Recusal Pledge

San Francisco Chronicle – Erik Schelzig (Associated Press) | Published: 7/7/2013

An FBI investigation of alleged fraud by the sales staff at Pilot Flying J, the truck stop chain owned by the family of Tennessee Gov. Bill Haslam, has shined a spotlight on the governor’s pledge to keep his distance from company business. Opponents attacked Haslam for refusing to disclose his personal ownership stake, among other criticisms, in the 2010 Republican primary and general election.

Virginia – McDonnell’s Corporation, Wife Allegedly Benefited from $120,000 More from Donor

Washington Post – Rosalind Helderman | Published: 7/10/2013

Virginia Gov. Bob McDonnell is facing new allegations he failed to report donations made to him and other family members. Jonnie Williams, Sr., a businessperson and prominent political donor, gave $70,000 to a corporation owned by McDonnell and his sister last year. The payments to the corporation offer the first public example of money provided by Williams that would directly benefit McDonnell and not just his family.

Jim Sedor 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.

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