Federal:

Firm Asks for Disclaimer Exemption for Mobile Political Advertising

Huffington Post – Paul Blumenthal | Published: 9/11/2013

A digital media firm is asking the FEC to exempt mobile ads from the traditional disclosure statements that apply to political ads. Revolution Messaging said most ads produced for the mobile platforms do not have enough pixels to reasonably include more than a dozen words required to identify who paid for the spot. The firm said disclosures would take up more than 40 percent of the available space for a mobile advertisement.

From the States and Municipalities:

Arizona – Opponents Go to Court to Stop Higher Campaign Limits

Arizona Daily Sun – Howard Fischer (Capitol News Services) | Published: 9/11/2013

A judge is considering whether to block a new Arizona law increasing limits on campaign contributions. The Citizens Clean Elections Commission contends the statute violates constitutional restrictions on changing voter-approved laws. Under the law, which takes effect on September 13, the cap on some donations would rise to $4,000.

California – Hansen Agrees to $50,000 Fine, Says He Doesn’t Want His Signatures Used in Anti-Arena Effort

Sacramento Bee – Ryan Lillis | Published: 9/9/2013

Hedge-fund manager Chris Hansen and two political consultants have agreed to pay a $50,000 fine for failing to disclose a campaign contribution to a group seeking to block a new Sacramento sports arena. Hansen was accused of making an anonymous $100,000 donation in June to a signature-gathering effort to require a citywide vote on public subsidies for sports facilities.

California – Three Fined for Covert Lobbying in California

Sacramento Bee – Laurel Rosenhall | Published: 9/9/2013

Three partners in a public affairs firm will pay fines for trying to influence state government decisions without registering as lobbyists. The Fair Political Practices Commission accused the employees of California Strategies of crossing “the line which separates policy consultants from lobbyists.” The settlement with Jason Kinney, Rusty Areias, and Winston Hickox requires all three to register as lobbyists and, along with their firm, pay a combined fine of $40,500.

District of Columbia – D.C. Executive Linked to Secret 2008 aid to Hillary Clinton

Washington Post – Ann Marimow and Philip Rucker | Published: 9/12/2013

Federal prosecutors say marketing executive Troy White received $600,000 in illicit funds to do unsolicited campaign work for Hillary Clinton in the 2008 presidential election. White pleaded guilty for failing to file tax returns reflecting the amount his company was paid. Court documents outlined an elaborate scheme and said White worked with District of Columbia businessperson Jeffrey Thompson to help Clinton during several primaries.

Florida – Execution Rescheduled to Accommodate Pam Bondi Fundraiser

Tampa Bay Times – Adam Smith | Published: 9/9/2013

Florida Attorney General Pam Bondi persuaded Gov. Rick Scott to postpone an execution because it conflicted with her campaign fundraising reception. Shortly before a scheduled execution, the state attorney general typically phones the governor to inform him or her there is no legal basis for delay. After Scott had rescheduled the execution for September 10, the date of Bondi’s “hometown campaign kickoff,” her office asked that it be postponed; the new date is October 1.

Florida – Senate Prez Wants to Start Auditing Lobbying Reports

Orlando Sentinel – Aaron Deslatte | Published: 9/9/2013

Florida Senate President Don Gaetz wants the Legislature to make good on a never-enforced requirement that lobbying firms be subjected to random audits. He said he had asked the Senate’s general counsel to work with the House to determine how to kick-start the audits. Gaetz said the main holdup may be whether the Legislature has budget authority to begin the audits, or whether it would have to wait until the next fiscal year to launch them.

Indiana – Should Indiana Regulators Raise Money from Utility Trade Groups to Pay for Conference?

Indianapolis Star – John Russell | Published: 9/11/2013

The state ethics agency approved a request from the Indiana Utility Regulatory Commission to solicit donations from utility trade groups to fund a conference of regulators from 14 states to be held in Indianapolis. Watchdogs say such a move could give utility groups a chance to curry favor with regulators, who make decisions on whether companies can raise rates or build new plants.

Missouri – Missouri House Speaker’s Side Business Raises Ethical Issues

Kansas City Star – Jason Hancock | Published: 9/6/2013

In addition to his job as a legislator and his position with a law firm, state House Speaker Tim Jones also earns money from the Missouri Freedom Alliance. Jones has offered conflicting explanations of what type of work the group does. First, he said it was legal consulting on basic legislative process. Jones later said it had nothing to do with legislative issues and instead focused on private legal matters.

New Jersey – Christie Vetoes Bill to Move General Election to October

Newark Star Ledger – Matt Friedman | Published: 9/9/2013

New Jersey Gov. Chris Christie vetoed a bill that would have moved the November 5 general election to the date of the special U.S. Senate election on October 16. Christie also vetoed a bill that would let voters who go to the polls in October to also vote early for the November election, when the governor and all 120 seats in the Legislature are being contested.

New Mexico – Donald Duck, New Mexico Lobbyist

New Mexico Watchdog – Rob Nikolewski | Published: 9/12/2013

New Mexico Watchdog found “Donald Duck” on the list of registered lobbyist in the state. According disclosure reports, Donald spent $200 on dinner for “Senator Mickey Mouse” at The Bull Ring, a popular restaurant in Santa Fe.

New York – Forgive? No, a Night to Forget for Scandal-Tarred Candidates

New York Times – Michael Grynbaum | Published: 9/11/2013

Election Day was sobering for a peculiar brand of politician that emerged in the New York City election season: the scandal-tarred scoundrel seeking a second chance. The results reflected the mood of an electorate whose tolerance for the well-trod path of political repentance may have reached its limits.

Pennsylvania – Pa. Lawmakers Eye Bills to Thwart Corruption

PhillyBurbs.com – Natasha Lindstrom | Published: 9/9/2013

More than three dozen public officials in Pennsylvania have faced corruption charges since 2007. The House State Government Committee held a recent hearing to take testimony on ways the ethics law can be strengthened in hopes of restoring public confidence in state government.

Tennessee – TN Ethics Commission Opts Not to Fine Tom Ingram

The Tennessean – Chas Sisk | Published: 9/12/2013

The Tennessee Ethics Commission voted to dismiss a complaint filed against Gov. Bill Haslam that said he failed to disclose how much he paid Tom Ingram, his former chief campaign strategist, for political advice. The commission also declined to fine Ingram on for failing to disclose a lobbying relationship with a company hoping to win permission to mine on public land.

Washington – Ethics Rules Limit Freebies

Spokane Spokesman-Review – Jim Camden | Published: 9/6/2013

With college football season just starting up, Washington’s Legislative Ethics Board clarified that state lawmakers are not permitted to accept free tickets for themselves and family members. But it is all right for a legislator to attend a game as the guest of the university president and sit in the president’s box.

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.

National:

Battle over Dark Money Takes Many Forms on State Level

Sunlight Foundation – Peter Olsen-Phillips | Published: 9/5/2013

A Sunlight Foundation survey found dozens of laws that passed or are pending in state Legislatures addressing the U.S. Supreme Court’s Citizen United ruling. The foundation said while few bills have made it into law so far, the legislation that has been introduced suggests widespread interest in improving transparency at the state level.

Federal:

Feds Could Allow Bitcoin Campaign Donations

Politico – Byron Tau | Published: 9/4/2013

The FEC may determine rules governing donations made in Bitcoins and how they apply to campaigns. Lawyers for Conservative Action Fund PAC asked the agency decide if candidates and outside groups are allowed to accept the digital currency, in addition to U.S. dollars. Bitcoin, which allows for anonymous, encrypted digital transactions, has come under fire from regulators who worry about the lack of oversight and the currency’s potential use in crime.

From the States and Municipalities:

Alaska – Alaska Town Roots for Feline Mayor Attacked by Dog

Houston Chronicle – Rachel D’Oro (Associated Press) | Published: 9/5/2013

The honorary mayor of Talkeetna, Alaska is in bad shape after being attacked by a dog. Stubbs the cat made it to the mayor’s office through a write-in campaign. He has held the honorary position for more than 15 years. His election earned him enough press to catapult the town at the base of Mount McKinley into a tourist destination.

California – California Republicans Thrive at the Local Level

Los Angeles Times – Mark Barabak | Published: 9/3/2013

Over the last two decades, California has become a Democratic fortress, beyond the GOP’s reach in presidential campaigns and all but hopeless in statewide contests. At the local level, the picture is quite different. Despite the Democrats’ sizable statewide registration advantage, Republicans hold close to half the 2,500 mayoral and city council seats in California.

California – New Rules Give Daily Updates on Money in Mayor’s Race

San Diego Union Tribune – Craig Gustafson | Published: 9/4/2013

New rules in San Diego require any campaign contribution of $1,000 or more be disclosed within 24 hours during the 90-day period before an election. That is an expansion from the earlier state law that mandated such disclosures in the final 16 days of a race. The change will be in effect for the November 19 special election for mayor.

Colorado – In Colorado Recall Law, Victory for Incumbents Means Cash Refunds

Denver Post – Kurtis Lee | Published: 9/3/2013

If Senate President John Morse and Sen. Angela Giron win their recall elections, Colorado law provides that incumbents can collect up to 10 cents per vote. Morse and Giron, who face recalls for their support of gun laws passed this year by the Legislature, would have 60-days after the date of the recall election to file a request with the state.

Florida – Top Florida Senate Aide Gets $400,000 as Moonlighting Political Consultant

Tampa Bay Times – Mary Ellen Klas | Published: 8/31/2013

For three years, Chris Clark took a leave of absence from his job as a legislative staff member when the session ended and went to work as Florida Senate President Don Gaetz’s campaign manager, and earned more than $400,000. The lucrative arrangement underscores the financial ties special interests have with the Legislature as staff often cycle in and out of government and the private sector, developing relationships with the lobbyists who have a financial stake in influencing them.

Kentucky – Ex-Hoops Star Reaches Plea Deal, Could Get 2 Years

Kansas City Star – Roger Alford (Associated Press) | Published: 9/5/2013

Former Kentucky Agriculture Commissioner Richie Farmer entered into agreements with federal and state prosecutors, as well as the Executive Branch Ethics Commission, that would resolve all charges against him. He will plead guilty to two counts and receive a sentence in the range of 21 to 27 months. Farmer had faced a five-count federal indictment for misusing state resources. He also faced a 42-count charge brought by the commission.

Massachusetts – Former Mass. LG Fined for Campaign Violations

Boston Globe – Bob Salsberg (Associated Press) | Published: 8/29/2013

Timothy Murray agreed to pay $80,000 to settle charges he collected illegal campaign contributions raised by two public officials, capping a controversy that derailed the former Massachusetts lieutenant governor’s political career. Murray collected tens of thousands of dollars in donations solicited by former Chelsea Housing Authority Executive Director Michael McLaughlin, who was indicted for several campaign finance violations, including unlawful solicitation by a public employee.

New Jersey – Birdsall Services Group Ordered to Pay $1 Million after Pleading Guilty to Making Illegal Campaign Contributions

Bergen Record – Abbott Koloff | Published: 8/31/2013

Birdsall Services Group was ordered to $1 million in criminal penalties for making illegal campaign contributions that violated New Jersey’s “pay-to-play” law. The engineering firm is prohibited from working on government contracts in New Jersey for 10 years. Birdsall ceased operating after it declared bankruptcy earlier this year and sold its assets to a California company.

New Mexico – Judge Strikes Down City Ban on Corporate Gifts

Albuquerque Journal – Dan McKay | Published: 9/5/2013

U.S. District Court Judge M. Christine Armijo ruled Albuquerque’s ban on corporate campaign contributions is unconstitutional. Armijo did not explicitly address a companion prohibition that covers donations from city contractors. Her earlier decisions, however, restricted the scope of that ban.

Oklahoma – Oklahoma Ethics Commission Seeks Clearer Rules

Enid News & Eagle – Dale Denwalt | Published: 8/30/2013

Oklahoma Ethics Commission Director Lee Slater said a rewrite of the rules governing lobbying and campaign finance is on schedule. Slater said the first set of draft rules, dealing primarily with administrative matters, will be posted soon. Additional draft guidelines will be posted around the first of October and the first of November. The commission expects to vote on a final draft in January. Those rules will become effective 90 days after adoption unless they are rejected by the Legislature.

South Carolina – Leadership Positions Pay Off in Legislature

The State – Jamie Self | Published: 9/1/2013

Climbing the leadership ladder in the South Carolina General Assembly pays fundraising dividends for powerful lawmakers, according to campaign finance reports. A review by The State found contributions increased substantially for six members elevated to powerful leadership roles in the committees that oversee state spending and laws, and the Legislature’s political caucuses.

Texas – Eluding Big Ethics Fines

San Antonio Express-News – David Saleh Rauf | Published: 9/1/2013

The Texas Ethics Commission, when challenged in court, rarely walks away with the fine it originally levied. Experts point to the appeals process, which the commission and some lawmakers argue undermines the agency’s enforcement muscle. Since 1992, the commission has been challenged four times in court and forced to settle for reduced penalties in three cases.

Virginia – Study Highlights Check-Splitting in Va. Gift Reporting

Washington Post – Laura Vozzella | Published: 8/28/2013

Lobbyists who entertain state officials in Virginia often report each meal as a gift provided by multiple clients. Spreading entertainment costs across multiple clients also understates the value of gifts provided to legislators, who base their disclosure reports on gift summaries that lobbyists provide at the end of the year. Although the practice is not necessarily intended to dodge reporting requirements, it is drawing more scrutiny.

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.

National:

Private Lobbyists Get Public Pensions in 20 States

Politico; Associated Press –   | Published: 8/26/2013

Lobbyists in at least 20 states receive public pensions because they represent associations of counties, cities, and school boards. Legislatures granted them access decades ago on the premise that they serve governments and the public. But several states have started to question whether these organizations should qualify for such benefits, since they are private entities in most respects.

From the States and Municipalities:

California – San Diego Mayor Bob Filner Resigns, Faces Criminal Investigation

Los Angeles Times – Tony Perry and Richard Marosi | Published: 8/23/2013

San Diego Mayor Bob Filner resigned under a barrage of sexual harassment complaints, offering an apology to his accusers while still denying the allegations. In exchange for his resignation, the city will pay most of Filner’s legal fees. It will also cover any punitive damages against him in any lawsuit. A spokesperson for the state attorney general’s office confirmed a criminal investigation into Filner’s treatment of women is underway.

California – State Panel Changes Disclosure Rules for Public Officials’ Travel

Los Angeles Times – Patrick McGreevy | Published: 8/22/2013

The California Fair Political Practices Commission (FPPC) revised gift rules involving travel by elected officials. “[The FPPC] can only require disclosure or impose restrictions if there is a personal benefit to the individual,” said agency Chairperson Ann Ravel.

Connecticut – Former Donovan Aide Gets 38 Months in Campaign Scandal

Hartford Courant – Dave Altimari | Published: 8/27/2013

Robert Braddock, the ex-campaign finance director to former Connecticut House Speaker Chris Donovan’s unsuccessful congressional campaign, was sentenced to more than three years in prison. Braddock and seven other co-defendants who pleaded guilty were involved in a scheme that funneled nearly $28,000 to Donovan’s campaign through straw donors in an effort to get Donovan to defeat proposed legislation to raise taxes on roll-your-own cigarette shops.

Florida – Lobbyist Fee Reports Are Just another Type of Competition

Orlando Sentinel – Aaron Deslatte | Published: 8/23/2013

The large paydays reported by some Florida lobbying firms are causing many to cry foul on the state’s disclosure law. The behind-the-scenes criticism is focused on the law’s requirements mandating only that lobbyist detail what they are paid to ply their trade in $10,000 ranges. The reports have never been subjected to audits. Many complain other lobbyists engage in financial gamesmanship in order to boost their status or draw new clients.

Florida – Texas-Sized B-Day Party for Scott Aide Hosted by Lobbyist and Wife

Tampa Bay Times – Michael Van Sickler | Published: 8/27/2013

Florida Gov. Rick Scott’s chief of staff, Adam Hollingsworth attended a birthday party for another top gubernatorial staffer at the home of Daniel and Monica Russell. Daniel Russell is a registered lobbyist for Northrop Grumman, which has been in talks with the state about tax incentives for the company. The office handling those negotiations is the Department of Economic Opportunity, where Monica Russell is the spokesperson.

Illinois – DuPage County Board Loosens Cap on Campaign Contributions

Chicago Daily Herald – Robert Sanchez | Published: 8/28/2013

In an attempt to align itself with Illinois’ campaign finance law, the DuPage County Board voted to raise the county donation limit from $1,000 to the state standard of $5,300. The cap had applied to companies and consulting firms, as well as officers and owners of those entities, as well as to any individual appointed or applying for a position on a board, commission, authority, task force, or advisory committee.

Missouri – Klahr Chosen as Director of Mo. Ethics Commission

Miami Herald; Associated Press –   | Published: 8/27/2013

The Missouri Ethics Commission chose James Klahr to be the agency’s executive director beginning on September 13. He was a staff attorney for the state Senate and for Gov. Jay Nixon. Klahr replaces Julie Allen, who stepped down to become the elections director for the secretary of state’s office.

Missouri – Mo. Rep. LaFaver Arrested for Possessing Pot, Quits Democratic Campaign Role but Not House

Columbus Republic – David Lieb (Associated Press) | Published: 8/26/2013

A Missouri lawmaker who was arrested for possession of marijuana during a traffic stop said he would not resign. State Rep. Jeremy LaFaver has, however, stepped down as chairperson of the Democratic Party’s 2014 campaign committee. During this past legislative session, LaFaver sponsored a bill that would have reduced the penalties for marijuana possession; it did not pass.

Nevada – Emails Show How Political Advisers Trumped Staff in Winning Support for ‘More Cops’ Tax

Las Vegas Sun – Anjeanette Damon | Published: 8/27/2013

Before the 2013 legislative session began, Nevada Gov Brian Sandoval followed the advice of outside political advisors and decided to support a tax increase. An email exchange about the move offers a look into who holds sway at the governor’s office, including the role of the two lobbyists.

New York – Millions Sweeten the Casino Pot

Albany Times Union – James Odato | Published: 8/27/2013

The Seneca Indian Nation agreed to give David Flaum a $3 million “development fee” if a casino opens in Monroe County, and a contingency fee of up to $5 million if the tribe gets a state gaming compact by October 1. Lobbyists are banned from receiving contingency fees in New York. Flaum would have to register as a lobbyist if he begins appearing before government officials on behalf of the tribe, particularly for a gaming compact, and contract terms suggest the tribe might direct him to do so.

Ohio – Gov. John Kasich and Ohio Ethics Commission Linked by Political Contributions, Records Show

Cleveland Plain Dealer – Henry Gomez | Published: 8/23/2013

A Cleveland Plain Dealer analysis shows three of the five members of the Ohio Ethics Commission or their spouses have contributed to Gov. John Kasich’s campaigns over the years. Democrats see new relevance in these ties as they call for an ethics investigation of Kasich. The commission rejected a request to explore the governor’s involvement with Worthington Industries, a company that received state tax credits.

Ohio – OH Treasurer Crashes Twice, Makes No Staff Report

Miami Herald – Julie Carr Smyth (Associated Press) | Published: 8/27/2013

Ohio Treasurer Josh Mandel might have violated state and federal campaign laws by traveling across the state this year in a vehicle bought by his failed 2012 U.S. Senate campaign. The possible violation only came to light after a traffic accident in which the Jeep Grand Cherokee was totaled.

Texas – Texas Mayor, Brother, Dad Charged with Corruption

Kansas City Star; Associated Press –   | Published: 8/28/2013

The mayor of a small city in Texas and his brother, the president of the local school board, were charged in a public corruption case that prosecutors said maintained a stranglehold over local government business for years. Also arrested was Jose Vela, the pair’s father and a maintenance worker at the local high school. Prosecutors said he ran city government through his sons and a revolving door of city council and school board candidates recruited by his family.

Virginia – Lax Laws Lead to Cloudy View of Lobbyists’ Spending

The Virginian-Pilot – Julian Walker | Published: 8/29/2013

Lobbyists reported spending $15.9 million in Virginia from May 2012 to April 2013. But critics say it is an incomplete financial picture of all that goes into policy persuasion and legislative influence in a state with lax reporting standards and enforcement of lobbyist disclosures.

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.

Federal:

Campaign Finance Advocates Sue IRS

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

National:

Business Donations to Judges’ Campaigns Often Equal Friendly Rulings

State Legislators’ Ties to Nonprofit Groups Prove Fertile Ground for Corruption

Federal:

U.S. Attorney’s Office Files Suit against Lobbying Firm

From the States and Municipalities:

Colorado – Colorado Secretary of State Scott Gessler Wrong to Use State Funds for Trip, Ethics Commission Rules

District of Columbia – Former D.C. Council Member Brown Pleads Guilty to Bribe Charge

Florida – In Abolishing CCEs, Legislators Overlooked One Glitch

Iowa – Iowa Appeals Court Upholds Campaign Disclosure Law

Maryland – Rawlings-Blake Says She Stayed at Lobbyist’s Beach House

Montana – New Political Practices Chief Wants Robust Discourse, but ‘Maximum Disclosure’

Nebraska – Legislative Show Criticized as Tasteless, too Kind to Liberals

New Jersey – NJ Engineering Firm Birdsall Pleads Guilty in Illegal Donations Scheme, Agrees to Pay $1 Million

New York – Cuomo: Raise ethics bar

Pennsylvania – Lobbyists Would Shell Out More under Fee Hike

Wisconsin – Assembly Passes Bipartisan Elections Bill

Wisconsin – Wisconsin Journalism Group Stunned by Budget Provision

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.

From the States and Municipalities:

Colorado – In Colorado, Gun Control Votes Followed by Increasingly Popular Political Tool: The recall

Connecticut – Despite Corruption, Campaign Reform in Jeopardy

Maine – Maine Subpoenas Upheld for Anti-Gay Marriage Group

Maryland – Baltimore Mayor Officiates at Lobbyist Wedding in Vegas

Massachusetts – Former Cahill Aide, Goldman Banker Fined $100,000

Missouri – KC Council Approves New Ethics Code

Nevada – Campaign Transparency Bill Passes, Albeit a Watered-Down Version

New Jersey – State Campaign Finance Agency Lifts Political Contribution Caps for Independent Groups

North Carolina – Questions Raised over Campaign Checks at Center of Sweepstakes Probe

Texas – Perry Vetoes Dark Money Disclosure Bill Backed by GOP Legislature

Texas – Texas Passes Ethics Bill, But Many Proposed Reforms Are Left on the Cutting Room Floor

Utah – Utah Majority Leader and Lobbyists Vacation Together Abroad

Vermont – Shumlin: Deal was meant to help

Washington – Olympia Lobbyists Pamper Lawmakers with Free Meals

Washington – State Lawmakers Vote ‘No’ on Flaws, ‘Yes’ to Photo Retouching

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.

National:

NRA Tactics: Take no prisoners

Federal:

IRS Mess Adds to Campaign Finance Free-for-All

IRS Official Lois Lerner Placed on Leave amid Scandal

From the States and Municipalities:

Alabama – Lawmakers Vote to Lift Cap on Political Contributions by Corporations, Make Other Changes to Campaign Law

Arkansas – Arkansas Treasurer Steps Down amid Calls to Resign after Charges She Took Payments from Broker

California – California to Post Raw Campaign Filings Online Daily

Connecticut – Jury Convicts Aide to Former Connecticut House Speaker

Kansas – Kansas Lawmakers Pass Bill on Gun Lobbying

Kentucky – Richie Farmer’s Sister Resigns Post at Kentucky Registry of Election Finance

Montana – Bullock Picks New Political Practices Chief

North Carolina – Shanahan to Stop Practicing Law While He’s in Office

North Dakota – Feds Argue Coal Industry Can Legally Give to ND Regulators’ Campaigns

Texas – An Expensive Celebration, Courtesy of the Lobby

Texas – Texas House Adds Some Teeth to Political Disclosure Law

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.

National:

Lax State Rules Provide Cover for Sponsors of Attack Ads

Federal:

IG Report: ‘Inappropriate criteria’ stalled IRS approvals of conservative groups

SEC Pressed to Abandon Corporate Political Spending Disclosures Petition

From the States and Municipalities:

Alabama – GOP Considers Campaign Changes While Raising Money

Alabama – The Alabama Democratic Party: “We’re broke, broke, broke”

California – Cap on Political Party Contributions Moves Forward

Hawaii – Campaign Spending and Ethics Get Tech Upgrades

Missouri – Missouri Ethics Panel Fines Ex-Sen. Wright-Jones $270,000

New Jersey – Pay-to-Play Rollback Will Get One More Volley in Bergen, Pitting County Executive vs. Freeholders

New York – Ethics Panel Criticizes Assembly’s Response to Allegations against Lopez

Tennessee – Ethics Commission to Hold Hearing on Ingram Group ‘Oversight’

Tennessee – Lobbying Still Thriving Business in Nashville

Texas – House Sends Donor Disclosure Bill to Gov. Perry

Vermont – Campaign Finance Reform Failure Means Caps on Donations Unlikely to Occur until 2016 Campaign Cycle

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.

National:

States Try to Tackle ‘Secret Money’ in Politics

Federal:

Campaign Contribution Limits Broken Repeatedly In 2012 Election with No FEC Oversight

From the States and Municipalities:

Alabama – Campaign Finance Law Revisions Pass House; Headed Back to Senate

Georgia – Gov. Deal Signs Law capping Georgia Lobbyist Spending at $75 a Go

Hawaii – How One Lawmaker Blocks Hawaii’s Ethics Reforms Year after Year

Kansas – Seventy-Four Percent of Lobbyist Spending on Kansas Lawmakers Unaccounted For

New Jersey – Judge Approves $728,300 in Bonuses for Employees of Engineering Firm Accused of Campaign Finance Violations

New York – Senator in Corruption Case Spoke of Silencing Witnesses, Prosecutors Say

North Carolina – Private Conservative Group ALEC Carries Sway in Legislature

Pennsylvania – Orie Melvin Must Write Apology Letters to Pennsylvania Judges on Photos of Herself

South Carolina – South Carolina Sends Mark Sanford Back to House

Tennessee – Tom Ingram Faces Heat over Lobbying Pay

Texas – Lobby Disclosure of Consulting Ties Passes the Senate

Vermont – House OKs Cap on Donations to Super PACs

Washington – Lobbyists Spend Big Bucks on Dinners, Other Tabs for Lawmakers

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.

Federal:

FEC Denies Same-Sex Appeal

K Street’s Bounce Proves Elusive

From the States and Municipalities:

Alabama – Barron, Former Aide Indicted

Arkansas – Arkansas House Sends Ethics, Petition Rules to Voters

California – ‘Hacking’ Open Financial Disclosure Data

California – Many Private Interests Were Brown’s Fellow Travelers in China

Florida – Legislators Finish Rewrite of Ethics, Campaign Bill

Illinois – Emanuel Campaign Taking Donations from Hotel Developers with Projects in Works

Iowa – Affidavit Says Bachmann Approved Hidden Payments to Iowa Senator

New Jersey – Campaign Finance Overhaul by N.J. Senate Democrats Would Also Reform Pay-to-Play

North Carolina – Sweepstakes Donor’s Checks to NC Politicians Scrutinized

Texas – Campaign Accounts Help Texas Legislators Pay Staffers

Vermont – Former Lt. Gov. Dubie, RGA Agree to Settle Election Lawsuit with State

Washington – Donate to Sick Lawmakers? Limits Apply to Some Gifts

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