Jim Sedor, Author at State and Federal Communications

November 4, 2019 • Written by Jim Sedor

Monday’s LobbyComply News Roundup

Campaign Finance National: “Trump Lures GOP Senators on Impeachment with Cold Cash” by Alex Isenstadt for Politico Washington: “Washington High Court Probes Food Industry’s Speech Rights” by Don Jenkins for Capital Press Elections National: “The Messy Politics of Voter Purges” […]

November 1, 2019 • Written by Jim Sedor

News You Can Use Digest – November 1, 2019

National/Federal AP Exclusive: Middleman helped Saudi give to Obama inaugural AP News – Alan Suderman and Jim Mustian | Published: 10/29/2019 When President Barack Obama was reelected in 2012, a Saudi tycoon and his business associate sent hundreds of thousands of […]

National/Federal

AP Exclusive: Middleman helped Saudi give to Obama inaugural
AP News – Alan Suderman and Jim Mustian | Published: 10/29/2019

When President Barack Obama was reelected in 2012, a Saudi tycoon and his business associate sent hundreds of thousands of dollars to the U.S. to help pay for the inaugural celebration and get a picture with the president. American election law prohibits foreign nationals from making those sorts of contributions. But the donations Sheikh Mohammed Al Rahbani tried to send to Obama’s inaugural committee were funneled through a seasoned straw donor. That intermediary, Imaad Zuberi, agreed to plead guilty to making illegal campaign contributions to several American political candidates on behalf of foreign nationals. The prosecution is the latest in a string of cases that highlight the prevalence of banned foreign money in American politics and the often lax approach campaigns take in vetting contributions.

Before Deadly Crashes, Boeing Pushed for Law That Undercut Oversight
Seattle Times – Natalie Kitroeff and David Gelles (New York Times) | Published: 10/27/2019

For years, the government has been handing over more responsibility to aerospace manufacturers as a way to reduce bureaucracy. A recent bill cemented the industry’s power, allowing manufacturers to challenge regulators over safety disputes and making it difficult for the government to usurp companies’ authority. Although the law applies broadly to the industry, Boeing is the biggest beneficiary. An examination by The New York Times found Boeing and its allies helped craft the legislation to their liking, shaping the language of the law and overcoming criticism from regulators. Weeks after the law was passed, a Boeing 737 Max jet crashed off the coast of Indonesia, killing everyone on board. A second Max crashed in Ethiopia less than five months later, and the plane was grounded.

Civil Rights Leaders Thought They’d Figured Out How to Deal with Facebook. But Now They Are ‘Livid.’
Washington Post – Craig Timberg | Published: 10/25/2019

Before a recent town hall event featuring Facebook’s second-in-command Sheryl Sandberg, civil rights activists were optimistic that company officials would address concerns about racism on the platform. Near the top of the list were the voter suppression messages that flooded Facebook during the 2016 presidential election and, the civil rights leaders feared, would do so again in 2020. But that hope turned to outrage as civil rights leaders learned Facebook had announced what many now call “the Trump Exemption,” meaning the policy allowing any politician to lie freely in ads or free posts without consequences. Though Facebook has portrayed this decision as reflecting the nation’s ideals of unfettered political speech, civil rights leaders say they see Facebook’s quest to profit from political advertising.

Corporate Political Transparency: It’s optional
Center for Public Integrity – Dave Levinthal | Published: 10/24/2019

The disparity in the disclosure of political donations by corporations, detailed in a new report by the Center for Political Accountability and Zicklin Center for Business Ethics Research at the University of Pennsylvania’s Wharton School, underscores the flaccidity of federal laws and regulations governing what public companies must publicly disclose about their political activity. As the nation enters the teeth of the election season, corporations are again largely allowed to volunteer as much, or little, information as they please about, for example, how much cash they are infusing into “dark money” nonprofits that may in turn advocate for the election or defeat of candidates.

Federal Judge Holds DeVos in Contempt in Loan Case, Slaps Education Department with $100,000 Fine
Seattle Times – Danielle Douglas-Gabriel (Washington Post) | Published: 10/24/2019

A federal judge held Education Secretary Betsy DeVos in contempt for violating an order to stop collecting loan payments from former Corinthian Colleges students. Magistrate Judge Sallie Kim of the U.S. District Court in San Francisco slapped the Education Department with a $100,000 fine for violating a preliminary injunction. Money from the fine will be used to compensate the 16,000 people harmed by the federal agency’s actions. Some former students of the defunct for-profit college had their paychecks garnished. Others had their tax refunds seized by the federal government.

For Impeachment Witnesses, Testifying Can Cost $15,000
MSN – Sharon LaFraniere (New York Times) | Published: 10/24/2019

As a parade of State Department officials began trooping to Capitol Hill to testify in the impeachment inquiry imperiling President Trump, officials from the department’s employee association dispatched an appeal to its nearly 17,000 members. Send money, they pleaded. For the second time since Trump took office, an investigation into his conduct has set off a scramble across Washington, D.C. for lawyers to represent witnesses, and for the money to pay them. Many of the witnesses are career government workers who helped shape or carry out policy toward Ukraine. On civil-servant salaries, they have racked up bills of $15,000 or more for lawyers who can guide them through the sessions before congressional inquisitors.

Justice Dept. Is Said to Open Criminal Inquiry into Its Own Russia Investigation
MSN – Katie Benner and Adam Goldman (New York Times) | Published: 10/24/2019

For more than two years, President Trump has repeatedly attacked the Russia investigation, portraying it as a hoax and illegal even months after the special counsel closed it. Now, Trump’s own Justice Department has opened a criminal investigation into how it all began. Justice Department officials have shifted an administrative review of the Russia investigation closely overseen by Attorney General William Barr to a criminal inquiry. The move gives the prosecutor running it the power to subpoena for witness testimony and documents, to convene a grand jury, and to file criminal charges. The opening of a criminal investigation is likely to raise alarms that Trump is using the Justice Department to go after his perceived enemies.

K Street Executives Under Pressure on Diversity
The Hill – Alex Gangitano | Published: 10/30/2019

Overall, at least 22 corporate heads of companies’ K Street offices are people of color, according to data from the Washington Heads of Office, a group made up of senior government affairs executives of color. But those in the lobbying world say the numbers should be higher. Trade associations, lobbying shops, and law firms say they are working to diversify their ranks after growing pressure amid the most diverse Congress in history. But critics say the top lobbying jobs at companies do not see frequent turnover, and they say companies need to better nurture their talent pipeline. Some companies are flush with minority and female lobbyists, but just not at the top spot.

Payday Lenders Discussed Raising Money for Trump’s Campaign to Fend Off Regulation, Audio Reveals
Washington Post – Renae Merle | Published: 10/29/2019

A recent webinar sponsored by Borrow Smart Compliance, an industry consultant, gives surprisingly frank insight into the payday lending industry’s strategy to push for weaker government regulations by forging a tight relationship with the Trump administration and the president’s campaign. The payday lending industry, made up of businesses that make short-term loans to consumers at high interest rates, is awaiting new rules that could weaken Obama administration requirements. Michael Hodges, who billed himself as one of President Trump’s top fundraisers, said contributions to the president’s reelection campaign could be leveraged to gain access to the Trump administration.

Rep. Katie Hill to Resign Amid Allegations of Inappropriate Relationships with Staffers
Politico – Heather Caygle, John Bresnahan, and Kyle Cheney | Published: 10/27/2019

U.S. Rep. Katie Hill is resigning from Congress after facing allegations of inappropriate sexual relationships with staff members in her office and on her congressional campaign. Hill’s announcement capped a tumultuous 10-day episode that shook the Democratic Caucus. Hill was a prominent figure in the historic Democratic freshman class, and her resignation was a blow to the colleagues who defended her. Hill was under investigation by the House ethics committee for allegations of an improper sexual relationship with a male congressional staffer, a claim she denied. Hill admitted to and apologized for an “inappropriate” relationship with a female campaign staffer earlier.

Rep. Lori Trahan Says $300,000 of Campaign Funds Came from Husband, Calls It ‘Gray Area in Campaign Finance Law’
MassLive.com – Benjamin Kail | Published: 10/30/2019

U.S. Rep. Lori Trahan defended loaning her 2018 campaign $300,000 of her husband’s income, calling it “our money.” The Boston Globe reported that Trahan had far outspent peers on legal bills, with $167,000 paid to Perkins Coie to manage financial disclosures. The Globe reported Trahan repeatedly claimed that $371,000 she loaned her campaign came from her own funds, and Trahan did not disclose a joint bank account with her husband as a funding source until after she won her election, sparking complaints from watchdog groups. Trahan said she now realized the move constituted “a gray area in campaign finance law,” but cited multiple FEC rulings suggesting “what I did was not a violation.”

Twitter to Ban All Political Ads Amid 2020 Election Uproar
Duluth News Tribune – Tony Romm and Isacc Stanley-Becker (Washington Post) | Published: 10/30/2019

Twitter, reacting to growing concern about misinformation spread on social media, is banning all political advertising from its service. Its move strikes a contrast with Facebook, which continues to defend running paid political ads, even false ones, as a free speech priority. The move drew a mixed reception, with some critics highlighting that it would not affect what users can tweet and share on their own. The political ad ban also might not have much impact on widely followed accounts, including President Trump’s, whose tweets already reach more than 66 million users each day. Twitter’s new policy takes effect November 22.

White House Ukraine Expert Sought to Correct Transcript of Trump Call
MSN – Julian Barnes, Nicholas Fandos, and Danny Hakim (New York Times) | Published: 10/29/2019

Lt. Col. Alexander Vindman, the top Ukraine expert on the National Security Council, told House impeachment investigators that the White House transcript of a July call between President Trump and Ukraine’s president omitted crucial words and phrases, and his attempts to include them failed, according to people familiar with the testimony. The omissions, Vindman said, included Trump’s assertion there were recordings of former Vice President Joe Biden discussing Ukraine corruption, and an explicit mention by Ukraine President Volodymyr Zelensky of Burisma, the energy company whose board employed Biden’s son. His testimony is likely to drive investigators to ask further questions about how officials handled the call, including changes to the transcript and the decision to put it into the White House’s most classified computer system.

From the States and Municipalities

Alabama – Birmingham Water Board Member Guilty on Ethics Charges
AL.com – Ivana Hrynkiw | Published: 10/30/2019

A member of the Birmingham Water Works Board has been jailed after being found guilty on ethics charges. The case centered around allegations that Sherry Lewis used her position on the board to get free trips and meals, along with jobs for her son from water board contractors. Lewis was found guilty of using her position for personal gain or for the gain of a family member and voting on matters in which she or her family members had financial interest.

Arizona – Effort Underway to Significantly Change Elections in Arizona
Arizona Republic – Andrew Oxford | Published: 10/30/2019

Arizonans for Fair Elections launched a ballot initiative drive that proposes to lower the state’s campaign contribution limits and set up a system during election seasons for every voter to get vouchers from the state for up to $50 they could then give to the candidates of their choice. This model of publicly financing campaigns, which has already been adopted at the local level in Seattle, is just one piece of the sprawling proposed ballot measure that would also allow same-day and automatic voter registration while tightening the limits on political donations and restricting lobbying.

Arizona – Elected Arizona Official Accused of Selling Babies Suspended
AP News; Staff – | Published: 10/28/2019

An elected official in Arizona was suspended after he was charged with running a human smuggling scheme that brought pregnant women from the Marshall Islands to the U.S. to give birth and then paid them to give up their children for adoption. Leaders in Arizona’s most populous county suspended Assessor Paul Petersen without pay for 120 days. The Maricopa County Board of Supervisors does not have the power to permanently remove him from his office, which determines the value of properties for tax purposes in Phoenix and its suburbs. Petersen, who is in federal custody, has so far refused to resign since his arrest on October 8. His lawyer, Kurt Altman, said Petersen will fight to keep the $77,000-a-year job he was last elected to in 2016.

Arkansas – State Ethics Panel Member on Job After Term Ends
Arkansas Democrat-Gazette – Michael Wickline | Published: 10/27/2019

A member of the Arkansas Ethics Commission has served 10 months past the expiration of her appointment because state Attorney General Leslie Rutledge has yet to appoint a replacement – who, by law, must be a Democrat and of a minority race. Commissioner Sybil Jordan Hampton is not grumbling about continuing to serve on the commission. If she resigned, Hampton said, the five-member commission could have problems getting a quorum because another member was injured in a car accident in January and has not been able to attend meetings since then.

California – A ‘Straight Frickin’ Arrow’ or Not? Some Say California Democratic Fundraiser Walks a Fine Line
Sacramento Bee – Hannah Wiley | Published: 10/28/2019

When state Insurance Commissioner Ricardo Lara became embroiled in a deluge of questions and criticism this year for breaking a campaign promise not to accept industry donations, he promised Californians he would make it up to them. To start, he fired his longtime fundraiser, Dan Weitzman. Lara said he would institute “rigorous vetting protocols” built by experts familiar with “best practices,” seemingly a deviation from the fundraising system he had set up with Weitzman at the helm. But Weitzman is no rookie. Top Democrats have for two decades invested their fundraising trust in Weitzman, whose ability to inspire cash flow has launched political careers and his own prominence in Sacramento since the 1990s.

California – Times Investigation: L.A. councilman Wesson helped apartment executives while his son received rent break
Los Angeles Times – David Zahniser and Emily Alpert Reyes | Published: 10/24/2019

Los Angeles City Council President Herb Wesson helped shepherd a residential tower through the city’s review process amid opposition from city staff and the planning commission. During the same period, his son was living in a building owned by Rosewood Corp., a company headed by tower developer Michael Hakim. The councilperson’s son, Herb Wesson III, went more than five years without a rent increase at the apartment building, even as many other tenants saw their rent go up. Three other people who lived in the building at the time said they were aware he was receiving a rent break, and that it was provided because his father is a council member. One of them said Wesson III explained during a private conversation that he had received a discount because of “business his father was doing with the owners of the building.”

Colorado – Emails from 600 Colorado State Employees Are Slated to Vanish from Public Record
Denver Post – Alex Burness | Published: 10/30/2019

Email inboxes are slated to be purged for hundreds of state employees, in Colorado, a move that promises to eliminate access to government records that would otherwise be public. The impacted employees work for the Department of Regulatory Agencies, divisions of which regulate key industries, including insurance, electric utilities, banks, real estate, and telecommunications. Colorado law gives state departments broad discretion in crafting their policies for keeping or deleting the recorded history of public business they conduct.

Florida – City Commission Votes for Tougher Ordinance, Ethics Board Gets More Power
Tallahassee Reports – Steve Stewart | Published: 10/28/2019

The Tallahassee City Commission voted to move forward with ethics proposals that will give the city’s Independent Ethics Board more power. Together, the adopted amendments give the board expanded authority to investigate ethics charges and levy higher fines. The Commission also adopted other reforms which address financial disclosure and lobbyist registration. Commissioners voted to increase fines for lobbyists that fail to register. The penalties will start at $1,000 for the first violation and increase with each additional violation by $500. City Attorney Cassandra Jackson said a draft ordinance would be presented to the commission in November.

Illinois – Ethics Board Reaffirms Fine Against Operative Who Supplied Solis with Viagra, Sex Acts; Goes after Company That Hired Roberto Caldero
Chicago Sun Times – Fran Spielman | Published: 10/29/2019

The Chicago Board of Ethics reaffirmed its $25,000 fine against the political operative who supplied former Ald. Danny Solis with Viagra and sex acts and moved to hold Elgin Sweeping Services responsible for hiring Roberto Caldero. he finding of probable cause will require Elgin to explain why it hired Caldero to promote the company’s interests at City Hall when he was not a registered lobbyist. Caldero has already been slapped with a $25,000 fine that was reaffirmed after the board rejected his appeal. Elgin Sweeping faces a lesser fine, ranging from $500 to $2,000.

Illinois – Feds Allege State Rep. Luis Arroyo Caught on Undercover Recording Paying $2,500 Bribe. ‘This is the Jackpot.’
Chicago Tribune – Jason Meisner, Jamie Munks, and Dan Petrella | Published: 10/29/2019

Illinois Rep. Luis Arroyo bribed a legislative colleague with an offer of $2,500 a month in exchange for support of sweepstakes-related legislation, according to a federal complaint. Arroyo made the offer on August 2 and handed over an initial check on August 22 for the unidentified lawmaker’s backing of the legislation in the Illinois Senate, the complaint says. It describes Arroyo as having a vested interest in the arrangement as manager of Spartacus 3 LLC, a lobbying company, which included as its clients the owner of a firm that deals in video sweepstakes machines. The complaint describes the moment Arroyo gave the check to his colleague in a suburban Chicago restaurant, citing a federal wiretap that allegedly captured their conversation. “… This is, this is, this is the jackpot,” Arroyo told the senator.

Illinois – Former Lake Forest City Manager Indicted for Role in Paying Lobbyists Over Controversial Rail Project
Chicago Tribune – Daniel Dorfman (Pioneer Press) | Published: 10/24/2019

A former city manager in Lake Forest was indicted for official misconduct after he was accused of exceeding his authority as an administrator for his role in paying a lobbying firm without the city council’s approval. According to the indictment, Bob Kiely exceeded his $20,000 purchasing authority without council approval between January 1, 2016, and March 1, 2017, when payments were sent to the lobbying firm, and engaged in the contract knowing he was forbidden to do so under the law.

Maryland – Daughter of Ex-Md. Lawmaker Charged with Federal Wire Fraud Days After Mother’s Guilty Plea
Washington Post – Lynh Bui | Published: 10/29/2019

Anitra Edmond, the daughter and campaign treasurer of longtime Maryland Del. Tawanna Gaines, was charged with federal wire fraud, accused of funneling money from her mother’s campaign funds to a personal bank account. The charge against Edmond was filed less than two weeks after Gaines appeared in the same courthouse and pleaded guilty to the same charge. Gaines has resigned her seat.

Maryland – Maryland’s Online Political Ad Law Debated in Fourth Circuit
Courthouse News Service – Brad Kutner | Published: 10/30/2019

Maryland’s effort to regulate online political ads was met with skepticism by an appeals court judge, as a state attorney defending against a challenge by The Washington Post and other newspapers argued the law does not violate digital publishers’ right to free speech. The Online Electioneering Transparency and Accountability Act was blocked by a federal judge who found it would impose undue burden on publishers. The law requires platforms with more than 100,000 monthly visitors to publish the names and contact information for any purchaser of a “qualifying paid digital communication,” along with the price paid, and requires them to maintain a publicly available database with relevant information about the ad.

Maryland – Online Portal Will Publicly Display Baltimore Lobbying Disclosures
Baltimore Sun – Colin Campbell | Published: 10/31/2019

Baltimore has set up a public online portal where lobbyists can register and file disclosure forms to the city Ethics Board twice a year, instead of annually, as a result of a recent law to tighten lobbying rules. The law requires lobbyists approaching city government officials to “affirmatively identify” who they represent. It requires the Ethics Board to post those reports online, disclosing who paid lobbyists and how much. Those who fail to report could face a $1,000 penalty for each violation and a three-year ban from lobbying at City Hall. The reports must include any gifts of $100 or more given to a public servant or their family members.

Michigan – How a Tax Break to Help the Poor Went to NBA Owner Dan Gilbert
ProPublica – Jedff Ernsthausen and Justin Elliott | Published: 10/24/2019

Billionaire Dan Gilbert has spent the last decade buying up buildings in downtown Detroit, amassing nearly 100 properties and so completely dominating the area, it is known as Gilbertville. In the last few years, Gilbert, the founder of Quicken Loans and owner of the Cleveland Cavaliers, has also grown close to the Trump family. Quicken gave $750,000 to President Trump’s inaugural fund. Gilbert’s cultivation of the Trump family appears to have paid off: Three swaths of downtown Detroit were selected as opportunity zones under the Trump tax law, extending a valuable tax break to Gilbert’s real estate empire. Gilbert’s relationship with the White House helped him win his desired tax break, an email obtained by ProPublica suggests. The area made the cut even though it did not meet the poverty requirements of the program.

Nevada – Reno City Attorney Karl Hall Kept His Property Deal Quiet During Strip Club Fight
Renp Gazette Journal – Anjeanette Damon | Published: 10/29/2019

At the height of the Reno City Council’s campaign to oust strip clubs from downtown, City Attorney Karl Hall worked to sell an office building less than a block away from the Wild Orchid Gentleman’s Club but did not disclose the possible conflict-of-interest. Although the property was included on his annual financial disclosure form, Hall never disclosed his ownership or the fact it was on the market during the debate over whether the council should force the Wild Orchid and other strip clubs to move out of downtown. Nevada’s ethics law, which requires council members to read aloud a disclosure when they consider policies that might affect their personal finances, also applies to Hall.

New York – De Blasio Presidential Campaign Bankrolled by Donors with City Interests
Politico – Joe Anuta and Sally Goldenberg | Published: 10/29/2019

Despite disavowing the role of big money in politics, New York City Mayor Bill de Blasio relied primarily on donors who have business dealings with the city, are often wealthy, and are rarely motivated by ideology, something reinforced by his presidential campaign’s most recent federal filings. People who have a business stake in the policies and actions of his administration largely underwrote the $1.4 million he raised to bankroll his candidacy, including at least eight who appeared on the “doing business” list –people and companies with active financial dealings before the city whose donations would represent a conflict-of-interest.

New York – Kat Sullivan Sues JCOPE Over Lobbying Allegations
Albany Times Union – Chris Bragg | Published: 10/24/2019

Kat Sullivan, the alleged rape victim who has been extensively targeted by state ethics regulators in New York for failing to register as a lobbyist, filed a lawsuit arguing she never conducted lobbying work and the law under which she is being pursued is unconstitutional. The lawsuit alleges the Joint Commission on Public Ethics (JCOPE) is conducting an “improper and abusive” investigation into Sullivan over her efforts to raise awareness about sexual assault and support for passing the Child Victim’s Act in 2018. Sullivan’s lawsuit challenges JCOPE to prove the definition of “lobbying” it is applying in her case adheres to state law. She also is challenging whether the underlying law is valid.

North Carolina – State Court Bars Using North Carolina House Map in 2020 Elections
MSN – Michael Wines (New York Times) | Published: 10/28/2019

A state court effectively threw out North Carolina’s map of congressional districts, saying critics were poised to show “beyond a reasonable doubt” that it was an unconstitutional partisan gerrymander favoring Republicans. The ruling, by a three-judge panel in Superior Court, technically imposes a temporary ban on using the map in primary elections next spring. But the judges signaled they were unlikely to change their minds by inviting plaintiffs in the case to seek a summary judgment ending the case in their favor. The judges also said they were prepared to postpone primary elections should that prove necessary to further litigate the case or draw new House districts.

Oregon – Struggling Oregon County Spent $43,000 Traveling to D.C. to Lobby. It Wants $2,000 to Hand Over the Receipts.
Portland Oregonian – Rob Davis | Published: 10/25/2019

In the last four years, leaders of a struggling Oregon timber county have repeatedly traveled to Washington, D.C. to lobby President Trump and other top federal officials to increase timber harvests. Douglas County commissioners spent at least $43,000 on their lobbying trips using federal money awarded to the county. Yet after three formal requests and numerous questions from The Portland Oregonian, the county has only accounted for how commissioners spent $579.57. County officials want to charge the newsroom more than $1,900 and spend nearly a full week’s worth of clerical time to find 170 pages they say itemize the other $42,500.

Pennsylvania – Citing Spotlight PA/Caucus Probe, Top Lawmaker Pushes Limits on Campaign Donations, Stricter Disclosure Rules
Pittsburgh Post-Gazette – Sam Janich (The Caucus) and Angela Couloumbis (Spotlight PA) | Published: 10/25/2019

Pennsylvania Senate Minority Leader Jay Costa is proposing sweeping campaign finance reforms that would set limits on contributions, increase transparency, and ban candidates from using campaign money for their personal benefit, issues at the heart of a yearlong investigation published by The Caucus and Spotlight PA. Costa said his bill would, among other changes, establish contribution limits for the first time in the state, and impose more accountability for spending by elected officials and others running for office. For instance, the measure would require candidates to submit credit-card statements with their regularly filed campaign finance reports and ban the use of gift cards that can be used to further shield expenses.

Pennsylvania – House Panel Says Lobbyist Disclosure Law Should Be Improved
Pittsburgh Post-Gazette – Mark Scolforo (Associated Press) | Published: 10/30/2019

A new state House investigative committee’s first report said Pennsylvania’s lobbyist disclosure law should be overhauled so lobbyists, rather than the entities they work for, report meals, gifts, and other spending meant to influence government. The House Government Oversight Committee voted unanimously for the report that also recommended changes to how lobbyist spending reports are audited. The committee said identifying and punishing lobbyist registration violations is difficult under the current law, and it was not able to determine what percentage of principals, lobbying firms, and lobbyists are in compliance.

Pennsylvania – Inside the FBI Investigation into Philly Councilman Kenyatta Johnson, His Wife, and Kenny Gamble’s Nonprofit
Philadelphia Inquirer – Jeremy Roebuck and Chris Brennan | Published: 10/25/2019

Philadelphia City Councilperson Kenyatta Johnson has found himself dogged for the past three years by FBI scrutiny of his tenure. But while much of that investigation has taken place behind closed doors, details are beginning to emerge. Sources familiar with the probe described a sweeping examination into everything from the council member’s involvement in the bargain-rate sale of city-owned land to the work of his wife, Dawn Chavous, as an education consultant, campaign adviser, and charter school advocate.

Rhode Island – IGT Discloses Additional $600,000 Spent on Lobbying Campaign
Providence Journal – Katherine Gregg | Published: 10/24/2019

International Game Technology (IGT) has publicly acknowledged an additional $600,000 in spending on its campaign for a 20-year, no-bid extension of its Rhode Island Lottery contract, in response to a notice from Secretary of State Nellie Gorbea’s office that it was obliged to disclose the amount it gave Keeping Jobs in Rhode Island to run ads touting IGT and criticizing its rivals in the contract fight. The disclosure, in an amended lobbyist-disclosure report, raised the amount the United Kingdom-based gambling technology company and its affiliate, Keeping Jobs in Rhode Island, have spent on lobbyists and advertising and public-relations in a single three-month period to an unmatched $1.8 million. Gorbea raised the specter of penalties of up to $5,000 and revocation of IGT’s right to lobby in Rhode Island if it did not make a complete disclosure.

Rhode Island – Who is Brett Smiley? A Look at the Top Aide to Governor Raimondo Who Is Accused of Threatening a Casino Executive
Boston Globe – Dan McGowan | Published: 10/30/2019

Brett Smiley, Rhode Island Gov. Gina Raimondo’s chief of staff, allegedly tried to persuade the Twin River casino to not oppose a proposed 20-year, no-bid contract extension for one of its rivals, IGT, to run the state lottery and operate most video lottery terminals at the state’s two casinos. Marc Crisafulli, Twin River’s executive vice president, claims Smiley warned him the Twin River casino could face regulatory problems if the company fought the highly contentious contract proposal for IGT. Twin River waged a public relations and lobbying campaign opposing the deal anyway, and later was forced to pay a $180,000 fine to the state taking on too much debt from a series of transactions in 2019.

Virginia – Ex-Norfolk Sheriff Bob McCabe Indicted on Federal Corruption Charges
The Virginian-Pilot – Scott Daugherty and Tim Eberly | Published: 10/24/2019

Former Norfolk Sheriff Bob McCabe was indicted on 11 federal corruption charges, accused of taking bribes over more than two decades in exchange for steering millions of dollars in city contracts to friendly businesses. McCabe was charged along with Gerard Boyle, the founder of firms that have long provided health care services for Norfolk jail inmates. Prosecutors say the longtime sheriff took bribes – including an unreported $6,000 loan, gift cards to Todd Jurich’s Bistro, Washington Redskins tickets, and free catering for his annual golf tournament – in exchange for ensuring government contracts went to Boyle’s firm and another that did business with the jail. The indictment does not name the second company, but details in the document match the jail’s food services provider, ABL Food Management.

Washington – Despite Promising to Stop, Facebook and Google Are Still Selling Political Ads in Washington State
Seattle Times – David Gutman | Published: 10/28/2019

Facebook and Google announced they would stop selling political ads in Washington after a lawsuit accused them of not obeying the state’s rules on transparency. But search Facebook’s ad library and you will find paid ads for candidates for Olympia mayor and Seattle School Board, among many others. Google has sold at least $25,000 worth of ads about state and local elections in the state. Although the amounts represent only a fraction of the millions of dollars flooding Seattle’s city council elections and other campaigns, they are still reaching hundreds of thousands of potential voters. And candidates and PACs certainly think they are effective as they continue to buy the ads that the companies have claimed they do not sell, even though the platforms claim they remove the ads as soon as they realize what they have done.

October 31, 2019 • Written by Jim Sedor

Thursday’s LobbyComply News Roundup

Campaign Finance National: “AP Exclusive: Middleman helped Saudi give to Obama inaugural” by Alan Suderman and Jim Mustian for AP News Ethics National: “White House Ukraine Expert Sought to Correct Transcript of Trump Call” by Julian Barnes, Nicholas Fandos, and […]

October 30, 2019 • Written by Jim Sedor

Wednesday’s LobbyComply News Roundup

Campaign Finance National: “Payday Lenders Discussed Raising Money for Trump’s Campaign to Fend Off Regulation, Audio Reveals” by Renae Merle for Washington Post New York: “De Blasio Presidential Campaign Bankrolled by Donors with City Interests” by Joe Anuta and Sally […]

October 29, 2019 • Written by Jim Sedor

Tuesday’s LobbyComply News Roundup

Campaign Finance California: “A ‘Straight Frickin’ Arrow’ or Not? Some Say California Democratic Fundraiser Walks a Fine Line” by Hannah Wiley for Sacramento Bee Washington: “Despite Promising to Stop, Facebook and Google Are Still Selling Political Ads in Washington State” […]

October 28, 2019 • Written by Jim Sedor

Monday’s LobbyComply News Roundup

Campaign Finance National: “Corporate Political Transparency: It’s optional” by Dave Levinthal for Center for Public Integrity Elections National: “Civil Rights Leaders Thought They’d Figured Out How to Deal with Facebook. But Now They Are ‘Livid.’” by Craig Timberg for Washington […]

October 25, 2019 • Written by Jim Sedor

News You Can Use Digest – October 25, 2019

National/Federal ‘C’est Moi’: Mitt Romney admits to running secret Twitter account under the alias ‘Pierre Delecto’ MSN – Allyson Chiu (Washington Post) | Published: 10/21/2019 For years, Pierre Delecto’s presence on Twitter largely went unnoticed. Operating a bare-bones account with the […]

National/Federal

‘C’est Moi’: Mitt Romney admits to running secret Twitter account under the alias ‘Pierre Delecto’
MSN – Allyson Chiu (Washington Post) | Published: 10/21/2019

For years, Pierre Delecto’s presence on Twitter largely went unnoticed. Operating a bare-bones account with the handle @qaws9876, the user’s limited activity revealed only an interest in politics – namely, supporting Sen. Mitt Romney (R-Utah). So, when “Pierre Delecto” started trending recently on the social media platform, people were understandably confused. But they learned Pierre Delecto was not a bot or a random Romney superfan, but an account run by the senator himself. As Delecto, Romney, who has become one of President Trump’s most vocal GOP critics, used the account to like critical tweets about the president, while also occasionally defending himself against detractors.

Congress Has Long Sought to Bar Foreign Campaign Contributions
Roll Call – Todd Ruger | Published: 10/18/2019

In the decades before President Trump asked Ukraine to launch an investigation into his main political rival in the upcoming presidential election, Congress tried again and again to keep foreign nationals out of American elections and government decisions. The lawmakers’ adversaries over the years sound as if they come straight out of Hollywood scripts: the Nazi party in the 1930s, the Philippine sugar industry in the 1960s, a Greek industrialist in the 1970s, an international businessperson turned Chinese government agent in the 1990s. Congress passed laws to ban what they saw as threats to the integrity of elections, foreign policy, and national security. Foreign nationals found loopholes or new ways to contribute to campaigns.

Conservative Political Fundraiser Pleads Guilty to Felony
Center for Public Integrity – Sarah Kleiner | Published: 10/22/2019

One of Washington, D.C.’s most controversial political fundraisers pleaded guilty to one count of making a false statement to the FEC. Scott Mackenzie “caused the submission of a number of materially false, fictitious and fraudulent statements and representations” to the FEC from 2011 to 2018 on behalf of two PACs: Conservative StrikeForce and Conservative Majority Fund. Mackenzie has for years served as treasurer of more than 50 PACs, about a dozen of which purport to raise money for political and social causes but spend most of the money they raise from donors on fundraising, salaries, and overhead. “… The publicly available evidence shows [Mackenzie] has been at the heart of many of the worst scam PACs …,” said Adav Noti of the Campaign Legal Center.

Contradicting Trump, Ukraine Knew of Aid Freeze Before It Became Public
MSN – Andrew Kramer and Kenneth Vogel (New York Times) | Published: 10/23/2019

To Democrats who say that President Trump’s decision to freeze a $391 million military aid package to Ukraine was intended to bully Ukraine’s leader into carrying out investigations for Trump’s political benefit, the president and his allies have had a simple response: There could not have been any quid pro quo because the Ukrainians did not know the assistance had been blocked. But in fact, word of the aid freeze had gotten to high-level Ukrainian officials by the first week in August, according to interviews and documents obtained by The New York Times. The problem was not a bureaucratic glitch, the Ukrainians were told then. To address it, they were advised, they should reach out to Mick Mulvaney, the acting White House chief of staff, according to the interviews and records.

Facebook Takedowns Show New Russian Activity Targeted Biden, Praised Trump
MSN – Tony Romm and Isaac Baker-Stanley (Washington Post) | Published: 10/21/2019

Facebook introduced new efforts meant to fine-tune its defenses against disinformation ahead of the presidential election. They seek to remedy some vulnerabilities that malicious actors have tapped in recent months to spread false or misleading posts, photographs, and videos. Facebook also said it removed a network of Russian-backed accounts that posed as locals weighing in on political issues in swing states, praising President Trump and attacking former Vice President Joe Biden, illustrating the familiar threat of Russian interference looms over the next U.S. presidential race. Researchers said the efforts demonstrated how those seeking to interfere in American politics continue to exploit contentious topics, including racial and religious fault lines.

Family Ties Have Troubled Many National Politicians
Newsday – Tom Brune | Published: 10/21/2019

Former Vice President Joe Biden is not the only national politician who has been accused of having a conflict-of-interest involving a family member. He joins a long list that includes some of the nation’s earliest leaders and President Trump. It is a thorny problem, lawyers and experts specializing in government ethics said, as family members find ways to cash in on their ties to politicians’ prominence and power despite attempts to curb that exploitation with laws and federal personnel restrictions. Over the past 50 years, family scandals, many involving siblings, have erupted on presidents, prompting public outcry, investigations, and eventually new laws.

‘Get Over It’: Defiant chief of staff rides out storm over Ukraine remarks
Minneapolis Star Tribune – Michael Crowley and Maggie Haberman (New York Times) | Published: 10/19/2019

On the day after he made more news than any chief of staff in recent White House history, Mick Mulvaney went about his business as usual. But Mulvaney’s job has been anything but normal since the news conference at which he seemingly undermined the Trump administration’s strategy for avoiding impeachment by acknowledging the president had sought a quid pro quo for providing Ukraine with American aid. In the chaotic aftermath, Trump’s Republican allies are questioning Mulvaney’s savvy and intelligence. As he approaches his anniversary in the White House, Mulvaney finds himself in a strange netherworld.

How a Beltway Power Couple and a Political Newcomer Learned to Thrive in the Trump Era
Houston Chronicle – Michelle Ye Hee Lee, Michael Scherer, Josh Dawsey, and Anu Narayanswamy (Washington Post) | Published: 10/23/2019

When Brad Parscale was looking for advice about how to navigate Washington. D.C. after running the digital strategy for Donald Trump’s upstart presidential campaign in 2016, the political newcomer turned to a Beltway power couple. Katie Walsh and Mike Shields, both former chiefs of staff at the Republican National Committee, advised him on how to make the most of his new perch, he said. Since then, the three have helped each other flourish inside the Republican Party ecosystem, recommending each other’s services to top party officials and candidates. Together, the trio have broad influence across the GOP, drawing millions of dollars from 23 party committees and organizations since the beginning of 2017. Their dominance has alarmed other GOP strategists, who say the three have a disproportionate amount of sway and have helped each other sustain that power.

Lobbying Business Booms Despite Gridlock and Investigations
Bloomberg Law – Megan Wilson | Published: 10/21/2019

Lobbying revenue continued to increase throughout 2019, despite turbulence surrounding the Trump administration and partisan gridlock on Capitol Hill. The third quarter of 2019 was lucrative for many K Street firms, with 20 reporting an uptick in revenue, compared to the same time last year. In addition, 16 of those firms also had increased lobbying fees from January through September of this year, compared to 2018. It is a continuation of a growth in lobbying fees since President Trump took office.

Man to Plead Guilty to Funneling Foreign Money to US Campaigns
Courthouse News Service – Nathan Solis | Published: 10/22/2019

A California venture capitalist agreed to plead guilty to falsifying records to hide his work as a foreign agent and making illegal campaign contributions on behalf of foreign entities seeking to influence U.S. elections. Imaad Zuberi has donated large sums of money to both Republicans and Democrats, including $900,000 to President Trump’s inauguration committee and $600,000 to then-candidate Hillary Clinton. Zuberi told foreign nationals and representatives from foreign governments that he could influence American policies in their favor through his influence in Washington and flaunted his apparent sway to create business and investment opportunities for clients and himself, federal prosecutors say.

New EPA Chief in New England Barred from Many Decisions Because of Conflicts
Boston Globe – Dave Abel | Published: 10/22/2019

A former chemical industry lobbyist who was recently appointed as regional administrator of the Environmental Protection Agency has been barred from overseeing a range of vital issues in New England because of conflicts-of-interest that could compromise his public duties. Dennis Deziel, who spent five years as director of federal government affairs for Dow Chemical before his appointment in August, must recuse himself from decisions involving nearly one-fifth of the region’s Superfund toxic waste sites, the agency’s ethics office said. The scope of Deziel’s entanglements has alarmed environmental groups, who say his years at Dow potentially undermine his ability to regulate certain industries. Dow is one of the world’s largest manufacturers of chemicals and has a history of violating environmental rules.

Rep. Katie Hill Investigated Over Allegations of Improper Relationship with Staffer
Politico – John Bresnahan | Published: 10/23/2019

The House ethics committee announced it has launched an investigation into U.S. Rep. Katie Hill following allegations she engaged in an improper sexual relationship with a male congressional staffer. Hill denied that allegation and she blamed the controversy on an “abusive husband” whom she is in the midst of divorcing. But in a letter to her constituents sent out just before the committee announcement, Hill admitted to having an “inappropriate” relationship with a female campaign staff member during her run for Congress in 2018. Hill apologized for the relationship.

Republicans Storm Closed-Door Impeachment Hearing as Escalating Ukraine Scandal Threatens Trump
Washington Post – Toluse Olorunnipa, Josh Dawsey, and Mike Debonis | Published: 10/23/2019

Republicans’ defense of President Trump grew more frantic with House members storming a closed-door meeting, delaying the testimony of an impeachment witness as the GOP grappled with a growing abuse-of-power scandal centered on the president. A group of Trump’s congressional allies escalated their complaints about the impeachment inquiry by barging into a secure facility on Capitol Hill where a Pentagon official was to testify before the House Intelligence Committee. Their intrusion, which caused the testimony to be delayed for about five hours over security concerns, came a day after the top U.S. diplomat in Ukraine testified under oath that the White House had threatened to withhold military aid unless the Ukrainian government announced investigations for Trump’s political benefit.

The Student Vote Is Surging. So Are Efforts to Suppress It.
MSN – Michael Wines (New York Times) | Published: 10/24/2019

After decades of treating elections as an afterthought, college students have begun voting in force. Their turnout in the 2018 midterms was more than double the rate in the 2014 midterms, easily exceeding an already robust increase in national turnout. Energized by issues like climate change and the Trump presidency, students have suddenly emerged as a potentially crucial voting bloc in the 2020 general election. And almost as suddenly, Republican politicians around the country are throwing up roadblocks between students and voting booths. Students overwhelmingly lean Democratic, with three in four supportive of impeaching President Trump, according to a recent poll.

The Trump Administration Says It Has Violated Its Own Ethics Pledge
ProPublica – Derek Kravitz | Published: 10/23/2019

A government-wide review has acknowledged for the first time that at least several Trump political appointees violated the administration’s ethics pledge, which was put in place to try to “drain the swamp” by imposing lobbying restrictions and penalties. The details are tucked away in the Office of Government Ethics’ (OGE) latest annual report, which attracted little notice when it was released this summer. While President Trump’s ethics pledge was weaker than previous rules, the OGE still found violations in 2018 at three federal agencies: The Environmental Protection Agency, the Department of the Interior, and the National Labor Relations Board. No federal agency reported a violation of the Trump ethics pledge in 2017.

Trump Lawyer Says Even if He Shot Someone on Fifth Ave., He Can’t be Prosecuted
MSN – Benjamin Weiser and Azi Paybarah (New York Times) | Published: 10/23/2019

A federal appeals panel expressed skepticism that President Trump had a right to block state prosecutors in Manhattan from enforcing a subpoena that sought his personal and corporate tax returns for the last eight years. The judges peppered a lawyer for Trump with questions, expressing skepticism about the president’s argument that he was immune from criminal investigation. A lower court judge earlier rejected Trump’s claim, which has not previously been tested in the courts. A deal struck with the district attorney’s office will allow the president time to seek a speedy review of the appellate ruling in the U.S. Supreme Court on the condition he ask that the court hear the case in its current term, which ends in June.

Trump’s Cabinet Meetings Have Become About Everything but the Business of His Cabinet
Stamford Advocate – Josh Dawsey (Washington Post) | Published: 10/21/2019

Under President Trump, Cabinet meetings have become less about the business of his Cabinet than an opportunity for the president to invite in the assembled press to boast of his own accomplishments, lash out at his critics, and to hear the praise flow forth from advisers. The gatherings, with the press in attendance, often stretch for 60 to 90 minutes. Much of the most recent Cabinet meeting seemed about self-validation as Trump’s allies describe a presidency under siege, and a president frustrated with an onslaught of criticism.

U.S. Envoy Says He Was Told Release of Ukraine Aid Was Contingent on Public Declaration to Investigate Bidens, 2016 Election
MSN – Anne Gearan, Rachael Bade, Karoun Demirjian, and John Wagner (Washington Post) | Published: 10/22/2019

The senior U.S. diplomat in Ukraine said he was told release of military aid was contingent on public declarations from Ukraine that it would investigate the Bidens and the 2016 election, contradicting President Trump’s denial that he used the money as leverage for political gain. Acting Ambassador William Taylor Jr. testified in the House impeachment probe of Trump that he stands by his characterization that it was “crazy” to make the assistance contingent on investigations he found troubling. Taylor walked lawmakers through a series of conversations he had with other U.S. diplomats who were trying to obtain what one called the “deliverable” of Ukrainian help investigating Trump’s political rivals.

Why Trump Dropped His Idea to Hold the G7 at His Own Hotel
MSN – Maggie Haberman, Eric Lipton, and Katie Rogers (New York Times) | Published: 10/20/2019

He knew he was inviting criticism by choosing his own luxury golf club in Miami for the site of a gathering of world leaders at the Group of 7 summit in June, President Trump told his aides opposed to the choice, and he was prepared for the inevitable attack from Democrats. But what Trump was not prepared for was the reaction of fellow Republicans who said his choice of the club, the Trump National Doral, had crossed a line, and they could not defend it. So, Trump did something that might not have been a surprise for a president facing impeachment but was unusual for him: he reversed course, abruptly ending the uproar touched off earlier by the announcement of his decision by Mick Mulvaney, the acting chief of staff.

From the States and Municipalities

California – Company at Center of Insurance Commissioner’s Contributions Scandal Sold Without California Approval
San Diego Union-Tribune – Jeff McDonald | Published: 10/18/2019

The insurance conglomerate behind tens of thousands of dollars in political donations to California Insurance Commissioner Ricardo Lara has been sold, even though state regulators say they have not approved the transaction. Applied Underwriters was purchased for $920 million by its founder, Steven Menzies. The agreement is significant because Menzies is a central figure in a scandal surrounding Lara, who met privately with the insurance executive multiple times and accepted more than $46,000 in campaign donations from people connected to his company.

California – Former Mayor Anthony Silva Sentenced, Charges Dismissed Against Sharon Simas
Stockton Record – Nicholas Filipas | Published: 10/21/2019

Former Stockton Mayor Anthony Silva was formally sentenced to one felony conflict-of-interest charge that closed a three-year financial-malfeasance case. A judge sentenced Silva to 90 days in county jail. Silva was also ordered to pay $19,783 in restitution, be under three years of formal probation, and was given a lifetime ban on owning guns or ammunition. The conflict-of-interest charge stemmed from Silva’s decision to direct $5,000 in public money from a mayoral discretionary fund to the Kids Club of Stockton before leaving office in 2013.

California – Glendale Officials Take First Steps to Regulate Lobbying
Los Angeles Times – Lila Seidman | Published: 10/17/2019

Glendale City Council members directed the city attorney’s office to draft an ordinance that would require lobbyists to identify themselves, who they are working for, and how much they are being compensated. Each year, lobbyists would need to register with the city for a fee or face possible civil or criminal penalties. Quarterly reports with the information would be available to Council members and the public, under the tentative regulations. If the ordinance is adopted, Glendale would join cities like Los Angeles, Santa Monica, and West Hollywood, which all regulate how lobbyists interact with local elected officials in Southern California.

California – Real-Estate Company Admits Violating Campaign-Finance Rules with $7,000 in Contributions to LA Council District 4 Candidate
Los Angeles Daily Breeze; City News Service – | Published: 10/22/2019

Hillcrest LLC, a company owned by real estate developer Bruce Makowsky, was fined $71,000 for reimbursing donors to a Los Angeles City Council candidate during the 2015 election. City law prohibited individuals from contributing more than $700 to a council candidate in 2015. Campaign donors are barred from giving in the name of someone else, a practice that can be used to sidestep limits on how much each person can donate. Ethics Commission staffers recommended a penalty of $71,000 for the company, the maximum it could have been fined, because reimbursing donors is “an extremely serious violation,” they wrote in a report.

Connecticut – State Says Pols Missed Deadline to Have Their Day in Court
Connecticut Mirror – Mark Pazniokas | Published: 10/22/2019

State Sen. Rob Sampson and his predecessor, Joe Markley, wanted a legal debate over political speech and campaign finance law; all they got before the Connecticut Supreme Court were arguments over missed deadlines. They say the State Elections Enforcement Commission (SEEC) violated their First Amendment rights by imposing fines of $5,000 on Sampson and $2,000 on Markley over campaign mailers promoting them in 2014 as reliable defenders against the policies of Gov. Dannel Malloy, a Democrat. At issue was the question of whether the mailers were just a benefit to Sampson and Markley, who disagreed with Malloy on everything from taxation to criminal justice? Or did they also benefit Tom Foley, the Republican nominee for governor in 2014? The SEEC viewed the attacks on Malloy by Sampson and Markley as at least partially benefitting Foley, making the mailers an improper contribution to Foley.

Florida – Being Poor Shouldn’t Stop Florida Felons from Voting, Judge Rules in Amendment 4 Case
Tampa Bay Times – Lawrence Mower | Published: 10/19/2019

Florida must allow felons to vote if they cannot afford to pay back their court-ordered fees, fines, and restitution, a federal judge ruled in a case challenging the Legislature’s crackdown on Amendment 4. U.S. District Court Judge Robert Hinkle wrote in his decision that the historic amendment voters passed in 2018 allowing felons to vote does require they pay back their financial obligations to have their voting rights restored. But if they are too poor to pay those costs, the judge ruled, that should not keep them from voting. The judge granted a preliminary injunction that prevents Florida officials from using the bill to keep the 17 plaintiffs suing the state from voting. But the ramifications of Hinkle’s ruling is expected to affect other felons seeking to vote.

Florida – Tallahassee Ethics Officer Demands $450,000 and An Apology in Exchange for Early Exit
USA Today – Jeff Burlew (Tallahassee Democrat) | Published: 10/23/2019

Julie Meadows-Keefe, Tallahassee’s independent ethics officer, announced in July she was planning to step down in February 2020, a move that came after mounting criticism over a personal relationship she had with an appointed city official and other matters. Mayor John Dailey questioned her during a recent city commission meeting and later wrote an opinion piece in a local newspaper, accusing her of “unethical behavior.” Meadows-Keefe is now demanding that Dailey apologize to her and the city pay her $450,000 in exchange for her stepping down by the end of the year. “[The mayor] has pushed publicly and privately for her termination in a malicious and calculated way,” Marie Mattox, a lawyer for Meadows-Keefe, wrote in a letter to the city attorney.

Maine – Candidate for Maine Governor Paid Clean Elections Money to Future Employer
Portland Press Herald – Scott Thistle | Published: 10/20/2019

Former state Sen. Garrett Mason, who is running as a Clean Elections candidate for governor last year, directed taxpayer money to a consulting firm that hired him just after he lost the primary election in June. Mason spent just over $100,000 in taxpayer funds with Eaton River Strategies, a firm headed by lobbyist Kathie Summers-Grice. Although the move does not violate any state campaign finance laws or ethics rules, it raises concerns that Clean Elections funds could be used by candidates for personal financial gain or as a gateway to lucrative employment when they lose an election or leave public office.

Maine – Ethics Commission Staff Recommends Against Investigating Sara Gideon for Finance Violation
WGME – Caitlin Andrews (Bangor Daily News) | Published: 10/23/2019

The staff of Maine’s ethics commission is recommending against investigating state House Speaker Sara Gideon for her past use of a partially corporate-funded committee to reimburse herself for political contributions, saying Gideon, who is running to replace U.S. Sen. Susan Collins, did not violate state law because she did not intend to conceal the true source of the donations. Gideon’s use of her state political committee, which has since dissolved, to reimburse herself for political contributions came to light over the summer and became the subject of a campaign finance complaint.

Michigan – Judge Weighs Rep. Larry Inman Fundraising: Bribery or protected speech?
MLive.com – John Agar | Published: 10/17/2019

A federal judge refused to dismiss bribery and extortion charges against Michigan Rep. Larry Inman. He contends he accepted legal campaign contributions. Prosecutors allege Inman appeared willing to sell his vote – and influence others, if they received campaign contributions, too – in repealing Michigan’s prevailing-wage law. U.S. District Court Judge Robert Jonker said the case “inevitably raises First Amendment issues about the line between criminal bribery or extortion, on the one hand, and protected political activity on the other hand.” He thinks the issue should be left to a jury.

Michigan – Report: Duggan gave Make Your Date favor; chief of staff ordered emails deleted
Detroit News – Christine Ferretti and George Hunter | Published: 10/21/2019

Detroit’s inspector general released a scathing report that found Mayor Mike Duggan “unilaterally” directed city resources toward assisting a nonprofit, and his chief of staff and other top aides abused their authority by directing staff to delete emails detailing those efforts, undermining “the public’s trust in an open and transparent government.” The finding of preferential treatment for Make Your Date, a nonprofit aimed at addressing preterm births, is the culmination of a sixth-month probe by the inspector general’s office, which is calling on the city to reform its policies and staff training, and take disciplinary action against three employees, including Alexis Wiley, the mayor’s chief of staff.

New York – Campaign Panel Weighs Bigger Public Match for Local Donations
Newsday – Michael Gormley | Published: 10/22/2019

The commission charged with implementing the public funding of political campaigns in New York moved away from a straight six-to-one match of state funds to all donations toward an idea proposed by an Uber driver that would provide a far greater match to contributions from within a candidate’s legislative district. The commission voted analyze a twenty-to-one match for donations made by constituents from within the legislative district the candidate seeks to represent, and no match for contributions from outside the district. The concept would apply only to state legislative races, not statewide races for governor, lieutenant governor, comptroller, or attorney general.

New York – Council Refers King Ethics Complaints to Outside Authorities
Politico – Joe Anuta and Sally Goldenberg | Published: 10/23/2019

Outside enforcement organizations may be looking into ethics allegations against New York City Councilperson Andy King, meaning the Bronx lawmaker could face further reckoning beyond the suite of sanctions his colleagues are set to vote on. A report by the Committee on Standards and Ethics paints a damning portrait of King’s conduct over the last several years. The document alleges King misused city resources to benefit himself and his wife, who works for influential healthcare workers union. In one instance, city resources were allegedly used to support a retreat and a family wedding in the Virgin Islands. The report also accused King of mounting a campaign of retaliation and intimidation against staffers he believed were cooperating with council investigators.

New York – NY Ethics Agency Defends Probe of Rape Survivor
New York Post – Carl Campanile | Published: 10/23/2019

The New York Joint Commission on Public Ethics (JCOPE) is standing by its decision to investigate a rape survivor for violating lobbying laws by taking out billboards supporting a new sex abuse victims’ law. Kat Sullivan had allegedly used cash from the legal settlement in her rape case to pay $5,000 for the ads backing the Child Victims Act. The probe of an average person like Sullivan drew criticism from lawmakers. But JCOPE says the lobbying laws apply to everyone equally, correspondence reveals. “The Commission cannot pick and choose who is covered out of sympathy or hostility. Efforts to query a source or to urge compliance is mandated by the Legislature …,” JCOPE Chairperson Michael Rozen wrote in a letter to lawmakers.

Oklahoma – Oklahoma PAC Accused of Repeated Violations of Campaign Finance Laws
The Oklahoman – Nolan Clay | Published: 10/19/2019

A PAC secretly and illegally funneled thousands of dollars from a wealthy Missouri businessperson’s companies to Oklahoma politicians, the Oklahoma Ethics Commission alleged after an investigation. The commission sued Oklahoman’s For Healthy Living for financial penalties, saying it “repeatedly and intentionally violated the campaign finance laws of Oklahoma.” The only donors to the PAC over the last four years were two Missouri companies, Capital Health Management and Affordable Equity Partners Inc. The commission alleged Capital Health Management donated $35,000 and Affordable Equity Partners donated $8,000 in that time period in violation of state ethics rules against corporate donations. The president of both companies is Jeffrey Smith.

Pennsylvania – New Oversight Committee Examines Flaws in Pennsylvania’s Lobbying Disclosures
The Center Square – Dave Lemery | Published: 10/22/2019

Politicians and voters of all political stripes have lamented the influence of lobbying on governmental policy, with accusations that lawmakers’ votes can be bought for the right price. The members of the new House Oversight Committee in Pennsylvania sought to examine that issue in their first meeting when they convened to discuss a forthcoming report on lobbying disclosures in the state. Witnesses described a system where individuals or entities that want to get the attention of lawmakers – known as “principals” – can hire lobbying firms to bring their issue to the attention of lawmakers. If the lobbying firm uses gifts, trips to restaurants, or other forms of entertainment in an attempt to influence policy, that has to be reported to the state.

Pennsylvania – Pennsylvania State Lawmakers Are Hiding Millions in Campaign Spending. And It’s All Legal.
Pittsburgh Post-Gazette – Angela Couloumbis (Spotlight PA), Mike Wereschagin, Brad Bumsted, Paula Knudson, Sam Janesch, and Alyssa Bierdeman (The Caucus) | Published: 10/22/2019

An investigation found Pennsylvania lawmakers are shielding sometimes lavish campaign spending by not reporting the details to the public, making it difficult to assess if those expenditures was appropriate. From 2016 through 2018, state House and Senate candidates spent nearly $3.5 million that cannot be fully traced based on the information they disclosed. Charges included foreign trips, country club memberships, and a DNA test kit. In many cases, the expenditures were listed on publicly available documents with entries such as “meals” or “travel,” and a total amount, with no other details. Lawmakers have dismissed efforts to impose more restrictions, arguing they are unnecessary as long as details about where the money comes from, and how it is spent, are available to the public.

Rhode Island – Ex-Mattiello Operative Charged with Money Laundering; Says He’s Been Made ‘Fall Guy’
Providence Journal – Katherine Gregg | Published: 10/18/2019

Political operative Jeffrey Britt was indicted on a money-laundering charge in connection with his work on Rhode Island House Speaker Nicholas Mattiello’s 2016 reelection campaign. The indictment charges Britt with one felony count of money laundering and one misdemeanor count of making a prohibited campaign contribution and “disguising it as the contribution of someone else,” state Attorney General Peter Neronha said at a news conference. The grand jury investigated alleged shenanigans in the final weeks of Mattiello’s tough 2016 campaign in his Cranston home district, and specifically the roles played by Britt and potentially other aides in arranging and financing a mailer endorsing Mattiello.

Texas – Texas House Speaker Dennis Bonnen Says He Won’t Seek Re-Election After Scandal
Fort Worth Star-Telegram – Tessa Weinberg | Published: 10/22/2019

Texas House Speaker Dennis Bonnen announced he will not seek re-election to the Legislature or as leader of the House following growing calls for his resignation. The announcement comes three months after conservative activist Michael Quinn Sullivan alleged Bonnen offered writers of the group’s news site long sought-after House press credentials in exchange for the organization’s firepower in targeting 10 Republican incumbents in their re-election bids. In July, Sullivan revealed he had secretly recorded the meeting. The audio appears to largely support Sullivan’s allegations and spurred a flood of renewed calls from House members for Bonnen to step down.

West Virginia – Billionaire Governor’s Family Farms Get Subsidy
AP News – Anthony Izaguirre | Published: 10/17/2019

A farming business owned by the family of West Virginia’s billionaire governor has received $125,000 in soybean and corn subsidies, the maximum allowed from a federal program meant to help American farmers through the U.S. trade war with China. There is no evidence Gov. Jim Justice did anything illegal. But at least one analyst said the payments to the richest man in West Virginia are unseemly, given his wealth. And the subsidies have thrown the spotlight again on his business empire and the potential conflicts-of-interest it poses.

Wyoming – Wyoming’s First Public Records Ombudsman Aims to Boost Transparency
Laramie Boomerang – Tom Coulter (Wyoming Tribune Eagle) | Published: 10/21/2019

After working for nearly 30 years in Washington, D.C., Ruth Van Mark was not expecting to take on a new job in Wyoming. Instead, she was planning to retire back in the state where she grew up. A few months later, Van Mark was announced as the state’s first public records ombudsman. In the position, she will settle disputes over records requests, determine the scope of what can be redacted in requests, and coordinate with state agencies to make the process for submitting requests more straightforward. The position was created this year. Cassie Craven, a lobbyist with the Wyoming Liberty Group, said there was lot of testimony last session about records disputes between state agencies and citizens that had gone wrong in court.

October 24, 2019 • Written by Jim Sedor

Thursday’s LobbyComply News Roundup

Campaign Finance National: “Man to Plead Guilty to Funneling Foreign Money to US Campaigns” by Nathan Solis for Courthouse News Service National: “Conservative Political Fundraiser Pleads Guilty to Felony” by Sarah Kleiner for Center for Public Integrity Connecticut: “State Says […]

October 23, 2019 • Written by Jim Sedor

Wednesday’s LobbyComply News Roundup

Campaign Finance California: “L.A. Ethics Commission Fines Company for Campaign Finance Violations” by Staff for MyNewsLA.com Pennsylvania: “Pennsylvania State Lawmakers Are Hiding Millions in Campaign Spending. And It’s All Legal.” by Angela Couloumbis (Spotlight PA), Mike Wereschagin, Brad Bumsted, Paula […]

October 22, 2019 • Written by Jim Sedor

Tuesday’s LobbyComply News Roundup

Campaign Finance National: “Congress Has Long Sought to Bar Foreign Campaign Contributions” by Todd Ruger for Roll Call California: “Company at Center of Insurance Commissioner’s Contributions Scandal Sold Without California Approval” by Jeff McDonald for San Diego Union-Tribune Maine: “Candidate […]

October 21, 2019 • Written by Jim Sedor

Monday’s LobbyComply News Roundup

Campaign Finance Oklahoma: “Oklahoma PAC Accused of Repeated Violations of Campaign Finance Laws” by Nolan Clay for The Oklahoman Rhode Island: “Ex-Mattiello Operative Charged with Money Laundering; Says He’s Been Made ‘Fall Guy’” by Katherine Gregg for Providence Journal Ethics […]

October 18, 2019 • Written by Jim Sedor

News You Can Use Digest – October 18, 2019

National/Federal After Arrest of Giuliani Associates, FEC Chair Says Commission Struggling to Enforce Rules The Hill – Justin Wise | Published: 10/14/2019 FEC Chairperson Ellen Weintraub lamented the agency’s inability to enforce campaign finance law, saying in an interview there “may […]

National/Federal

After Arrest of Giuliani Associates, FEC Chair Says Commission Struggling to Enforce Rules
The Hill – Justin Wise | Published: 10/14/2019

FEC Chairperson Ellen Weintraub lamented the agency’s inability to enforce campaign finance law, saying in an interview there “may well be a lot of money that is slipping into our system that we just don’t know about.” Her remarks came in the wake of the campaign finance violation charges leveled against two associates of Rudolph Giuliani, President Trump’s personal attorney. Florida businesspeople Lev Parnas and Igor Fruman were arrested and accused of orchestrating a straw donor scheme that funneled money to numerous Republican committees, including a $325,000 contribution to a pro-Trump super PAC.

Appeals Court Rules Against Trump Over His Financial Data
Anchorage Daily News – Ann Marimow, Spencer Hsu, and David Fahrenthold (Washington Post) | Published: 10/11/2019

Congress can seek eight years of President Trump’s business records from his accounting firm, a federal appeals court ruled in one of several legal battles over access to the president’s financial data. The U.S. Court of Appeals for the District of Columbia Circuit upheld Congress’s broad investigative powers and rejected the president’s bid to block lawmakers from subpoenaing the documents. The case is one of several clashes between the Democrat-controlled House and the Republican president over Trump’s data that is expected to reach the U.S. Supreme Court. In this case, the judges ruled Trump’s arguments, that the subpoenas were invalid because Congress lacked a “legitimate legislative purpose” for its subpoenas, were incorrect.

Biden’s New Ethics Plan Includes Constitutional Amendment to Publicly Finance Elections
NBC News – Mike Mernoli | Published: 10/14/2019

Seeking to turn the page from what he called the most corrupt administration in American history, former Vice President Joe Biden rolled out a new comprehensive ethics plan that includes a constitutional amendment to publicly finance elections. It also calls for a ban on lobbying by foreign governments and stricter protocols to ensure a firewall between the White House and prosecutorial decisions at the Justice Department. The proposal comes as Biden is under assault from President Trump and his allies over unsubstantiated allegations that he acted as vice president to shield his son from an investigation of a Ukrainian energy company whose board he served on.

Democratic Lobbyists Bristle at Party’s Attack on K Street
The Hill – Alex Gangitano | Published: 10/16/2019

With presidential candidates like U.S. Sens. Elizabeth Warren and Bernie Sanders calling for tougher rules on how the lobbying world works, Democratic lobbyists find themselves walking a difficult tightrope. The lobbying industry has pushed back on those proposals as unconstitutional, arguing they would be a restriction on First Amendment rights. Democratic lobbyists said while those proposals may be intended to target K Street'[s biggest spenders, they could also silence voices for progressive causes. A persistent argument against tougher restrictions on lobbying is they would lead to more so-called shadow lobbyists, those who do lobbying work but do not register.

Department of Justice’s Lobbyist Registry Available, but with Technical Issues
The Weekly – Giovanna Garofalo | Published: 10/16/2019

Puerto Rico’s lobbyist registry is now available for the general public to use. The registry is essentially a table that will list lobbyists under their name, number of registrations, clients who they represent, and authorized staff. When visitors access the page now, they will realize that it does not feature a single lobbyist. The Department of Justice and the Puerto Rico Innovation and Technology Service are still ironing out technical issues with the registry.

FEC Chairwoman Says She ‘Will Not Be Silenced’ after Republican Lawmaker Requests Ethics Investigation
CNN – Kaatina Iyer | Published: 10/10/2019

FEC Chairperson Ellen Weintraub said she “will not be silenced” after a Republican member of Congress requested that she be investigated for ethics violations for her public statements. Rep. Rodney Davis, who was named an honorary state chairperson for President Trump’s reelection campaign, sent a letter to FEC Inspector General Christopher Skinner, asking him to investigate Weintraub’s “refusal … to recuse herself” from any matters involving the president. He argued that Weintraub’s public statements regarding Trump on Twitter undermines her nonpartisan position.

Fourth Defendant in Giuliani Associates’ Case Arrested at New York Airport
Stamford Advocate – Devlin Barrett (Washington Post) | Published: 10/16/2019

David Correia, the fourth defendant in a campaign finance case involving business associates of President Trump’s personal lawyer Rudolph Giuliani, was arrested at a New York City airport. Correia has been charged with participating in a scheme to use foreign money to build political support for a fledgling recreational marijuana business in Nevada and other states, according to an indictment that also charged Lev Parnas and Igor Fruman with conspiracy and making false statements to campaign finance regulators. The third defendant in the case, a California man named Andrey Kukushkin, was arrested recently, according to authorities.

Giuliani Is Said to Be Under Investigation for Ukraine Work
MSN – Michael Schmidt, Ben Protess, Kenneth Vogel, and William Rashbaum (New York Times) | Published: 10/11/2019

An investigation by federal prosecutors into President Trump’s personal lawyer Rudolph Giuliani is tied to the case against two of Giuliani’s associates who were arrested recently on campaign finance related charges. The associates were charged with funneling illegal contributions to a member of Congress whose help they sought in removing the American ambassador to Ukraine, Marie Yovanovitch. Giuliani has denied wrongdoing, but he acknowledged he and the associates worked with Ukrainian prosecutors to collect potentially damaging information about Yovanovitch. Federal law requires American citizens to disclose any contacts with the government or media in the U.S. at the direction or request of foreign politicians or government officials.

Giuliani Pressed for Turkish Prisoner Swap in Oval Office Meeting
MSN – Jo Becker, Maggie Haberman, and Eric Lipton (New York Times) | Published: 10/10/2019

During an Oval Office meeting with President Trump and Secretary of State Rex Tillerson in 2017, Rudolph Giuliani pressed for help in securing the release of a jailed client, an Iranian-Turkish gold trader, as part of a potential prisoner swap with Turkey. Giuliani’s request provoked an immediate objection from Tillerson, who argued it would be highly inappropriate to interfere in an open criminal case. In the end, no such prisoner swap took place. But the episode has opened a new chapter in Giuliani’s efforts to interject himself into the Trump administration’s diplomacy while at times representing clients with a direct interest in the outcome.

House Readies Bill Aimed at Stopping Foreign Election Interference
Courthouse News Service – Brandi Buchman | Published: 10/16/2019

House lawmakers are pushing for the passage of a third bill to protect the integrity of U.S. elections, with the latest piece of legislation aimed at closing loopholes that allow foreign nationals to spend money on American campaigns. The Stopping Harmful Interference in Elections for a Lasting Democracy Act proposes increasing transparency for campaigns, parties, and PACs by requiring them to report any attempt by a foreign government or individual to influence an election to the FEC and the FBI. The bill also requires U.S. campaigns to establish standards for compliance.

How Amazon.com Moved into the Business of U.S. Elections
Reuters – Nandita Bose | Published: 10/15/2019

The expansion by Amazon Web Services (AWS) into state and local elections has gathered steam since the 2016 U.S. presidential vote. More than 40 states now use one or more of Amazon’s election offering. So do the two main political parties, former Vice President Joe Biden, and the FEC. While it does not handle voting on election day, AWS, along with a network of partners, now runs state and county election websites, stores voter registration rolls and ballot data, facilitates overseas voting by military personnel, and helps provide live election-night results. The company’s efforts are welcomed by election administrators, who in interviews said they often struggle with keeping outdated systems up to date at the local level.

Never-Before-Seen Trump Tax Documents Show Major Inconsistencies
ProPublica – Heather Vogell | Published: 10/16/2019

Documents obtained by ProPublica show stark differences in how Donald Trump’s businesses reported some expenses, profits, and occupancy figures for two Manhattan buildings, giving a lender different figures than they provided to New York City tax authorities. The discrepancies made the buildings appear more profitable to the lender, and less profitable to the officials who set the buildings’ property tax. The discrepancies are “versions of fraud,” said Nancy Wallace, a professor of finance and real estate at the University of California-Berkeley. “This kind of stuff is not OK.” Two former Trump associates, Michael Cohen and Paul Manafort, are serving prison time for offenses that include falsifying tax and bank records, some of them related to real estate.

Rep. Elijah Cummings, Democratic Leader and Regular Trump Target, Dies at 68
MSN – Jenna Portnoy and Antonia Farzan (Washington Post) | Published: 10/17/2019

U.S. Rep. Elijah Cummings, who gained national attention for his principled stands on politically charged issues in the House, his calming effect on anti-police riots in Baltimore, and his forceful opposition to the presidency of Donald Trump, died on October 17. He was 68 years old. Cummings served as chairperson of the Congressional Black Caucus and then ranking member chair of what became the House Oversight and Reform Committee. He became a leading voice against the Trump administration’s efforts to add a citizenship question to the 2020 Census. He was also a forceful opponent of an immigration policy that separated thousands of children from their parents after they illegally crossed the southern U.S. border. Cummings spearheaded probes into security clearances issued by the White House and payments made during the 2016 campaign to silence women who claimed to have had affairs with Trump.

Those Foreign Business Ties? The Trump Sons Have Plenty Too
ENM News – Eric Lipton, Steve Eder, and Ben Protess (New York Times) | Published: 10/11/2019

For the children of the politically powerful, personal business and public dealings can often be indistinguishable, especially when private projects depend on foreign governments that are looking to bolster ties with Washington. As the president has become embroiled in a scandal involving his interactions with Ukraine, Donald Trump Jr. and his brother Eric have taken to attacking Hunter Biden, the son of former Vice President Joe Biden, for his business dealings in Ukraine and China. The brothers have accused him of leveraging his family name for personal gain while his father served in the Obama administration. But the high-profile attack roles being played by President Trump’s eldest sons have now thrust their own business dealings into the spotlight too. Both sons have operated and promoted the Trump family business overseas during their father’s presidency, even as he retains ownership.

Trump Emoluments Case Over His D.C. Hotel Gets Second Chance in Legal Challenge
Connecticut Post – Ann Marimow (Washington Post) | Published: 10/15/2019

A federal appeals court order revived a lawsuit claiming President Trump is illegally profiting from foreign and state government visitors at his hotel in Washington, D.C. The U.S. Court of Appeals for the Fourth Circuit agreed to rehear the lawsuit, brought by the attorneys general of Maryland and the District of Columbia, which was dismissed over the summer by a three-judge panel of the court. The brief order set oral arguments before a full panel of judges for December 12 and essentially gives the novel lawsuit, which tests the anti-corruption emoluments provisions of the Constitution, a second chance.

Trump Has Awarded Next Year’s G-7 Summit of World Leaders to His Miami-Area Resort, the White House Said
Washington Post – Toluse Olorunnipa, David Fahrenthold, and Jonathan O’Connell | Published: 10/17/2019

Next year’s G-7 gathering of the leaders of the world’s biggest economies will take place at President Trump’s Doral golf resort outside of Miami. The decision is without precedent in modern American history – the president used his public office to direct a massive contract to himself. Doral provides more revenue to Trump than any other hotel or golf club. But, in recent years, this keystone property has fallen into steep decline, with profits falling 69 percent in three years. Trump is already facing lawsuits for allegedly violating the Constitution’s ban on receiving “emoluments” from foreign governments. By doing this, he could be inviting a huge increase in the very line of business that these lawsuits are scrutinizing.

Ukraine Scandal Snags Pete Sessions’s Congressional Comeback Bid
MSN – Catie Edmondson (New York Times) | Published: 10/10/2019

Former U.S. Pete Sessions, who is seeking a return to Congress, was caught in the fallout of the Ukraine scandal when he was referred to in the indictment of two presidential allies accused of campaign finance allegations. Sessions is described as “Congressman-1” in the indictment of Lev Parnas and Igor Fruman, who were charged with illegally funneling foreign money to American candidates and campaigns. “Congressman-1” is described as having received large campaign contributions from Parnas and Fruman, and whom Parnas asked for help in removing the U.S. ambassador to Ukraine, Marie Yovanovitch.

Violent Spoof Video of Trump Killing His Critics Shows How Memes Have Reshaped Politics
Denver Post – Drew Harwell and Tony Romm (Washington Post) | Published: 10/14/2019

A meme video, a spoof derived from a bloody action film, shown at President Trump’s Miami-area golf resort drew outrage from some for its depiction of Trump shooting journalists and attacking political figures who have been critical of him, both Democrats and Republicans. Some warned the clip and others like it could incite real-world violence. But that outrage also helped ensure the video would be circulated more widely. Becca Lewis, who researches online subcultures and media manipulation for Stanford University, said the video’s sharing showed how such memes have become a potent force for political expression and propaganda. The meme creators, she said, routinely sought mainstream attention for the memes in a way that would make the shocking content seem more and more acceptable.

Warren Dares Facebook With Intentionally False Political Ad
ENM News – Cecilia Kang and Thomas Kaplan (New York Times) | Published: 10/12/2019

U.S. Sen. Elizabeth Warren is playing a game of dare with Facebook. The Democratic presidential candidate bought an ad on the social network that purposefully includes false claims about Facebook’s chief executive, Mark Zuckerberg, and President Trump to goad the social network to remove misinformation in political ads ahead of the 2020 presidential election. “We decided to see just how far it goes,” Warren wrote, calling Facebook a “disinformation-for-profit machine.” Warren’s actions follow a brouhaha over Facebook and political ads in recent weeks. Mr. Trump’s campaign recently bought ads across social media that falsely said Joe Biden offered $1 billion to Ukrainian officials to remove a prosecutor who was overseeing an investigation of a company associated with Biden’s son Hunter.

Warren Targets ‘Big Money’ in Campaigns, Rules Out Donations from Tech and Bank Executives
The Hill – Tal Axelrod | Published: 10/15/2019

U.S. Sen. Elizabeth Warren White House unveiled a sweeping new proposal to eliminate “big money” in politics, taking aim at donations from PACs and urging her fellow presidential contenders to be transparent in their fundraising. Warren said her plan would end the practice of federal candidates taking corporate PAC money and ban foreign corporate influence in American elections. She would also seek to require presidential campaigns to disclose their major donors, bundlers, and finance events and update campaign finance laws to address online political advertising.

From the States and Municipalities

Arizona – Group Trying to Escape Fine for Violating Arizona Campaign Finance Laws
Arizona Daily Star – Howard Fischer (Capitol News Services) | Published: 10/16/2019

A group that spent $260,000 attacking a 2014 foe of Arizona Gov. Doug Ducey in his first gubernatorial race is trying again to escape paying a fine for violating state campaign finance laws. Attorneys for the Legacy Foundation Action Fund contend the Citizens Clean Elections Commission lacked the power to impose a $96,000 fine for the commercials targeting former Mesa Mayor Scott Smith. They say there was no proof the ad was done to advance the political fortunes of anyone else in the Republican gubernatorial primary. Beyond that, the lawyers contend the commission lacks the authority to enforce the campaign finance laws.

Arkansas – Speaking as Taxpayer in TV Ad, Griffin Says; His Appearance Raises Campaign Questions
Arkansas Democrat-Gazette – Alyson Hoge | Published: 10/6/2019

Lt. Gov. Tim Griffin appears in a television advertisement financed by a nonprofit issue advocacy group called Arkansas Competes. The ad will air about two months after Griffin said he will be a candidate for governor in the 2022 election to succeed Asa Hutchinson. Griffin said he is appearing in the ad “as an Arkansas taxpayer deeply concerned about issues facing our state.” Arkansas Competes Director Carl Vogelpohl said the ad would not run afoul of state law. He noted a state Ethics Commission advisory opinion that said if a non-candidate committee organized as a 501 (c) (4) runs issue ads in Arkansas not asking for votes for or against a specific candidate, the committee’s activity would not constitute a contribution or non-monetary contribution under state law.

California – FBI Investigating Whether Sacramento Pot Businesses Paid Bribes to Public Officials
Sacramento Bee – Sam Stanton and Ryan Sabalow | Published: 10/14/2019

The FBI has been investigating whether Sacramento-area marijuana businesses have made payoffs to public officials in the region in exchange for favorable treatment and license approvals. The investigation comes two months after the FBI announced in a podcast that it was “seeing a public corruption threat emerge in the expanding cannabis industry” and asked for any tips involving public corruption and the industry, which generates millions of dollars in revenue and involves licenses that can go for as much as $500,000.

Connecticut – Government for Sale? Lobbyists Spent $32M This Year to Influence Legislative Session
Manchester Journal Inquirer – Eric Bedner and Will Healy | Published: 10/12/2019

More than $32.3 million was spent this year by nearly 1,000 lobbying organizations to push their agendas and try to persuade Connecticut lawmakers into siding with them on key pieces of legislation. Most of that money was spent during the legislative session that ran from January to June. During the 2019 session, the two most lobbied areas of policy involved health care and hospitals and general government, which includes taxes and contracts Peter Lewandowski, executive director of the Office of State Ethics, said the “overwhelming majority” of lobbyists comply with the regulations as the business is mostly “reputation-based.”

Florida – $500 Ethics Fine Against Dennis McDonald Now Upped to $10,000, with Governor’s Reprimand and Censure
FlaglerLive.com; Staff – | Published: 10/10/2019

A three-year-old ethics case against former Flagler County Commission candidate Dennis McDonald could have ended last June with a $500 fine to which he had agreed. Instead, and for lack of answering a few questions and correcting the record, McDonald now faces a $10,000 fine and a public censure and reprimand by the governor. The Florida Ethics Commission meets on October 25 to vote on the case. The commission voted unanimously at its June meeting to reject a settlement with McDonald because he had not corrected the mistakes on his financial disclosure forms, however minor, that had led to the case against him.

Illinois – Caught on Tape: Ex-Ald. Danny Solis sought money from Jerry Reinsdorf group
Chicago Sun-Times – Tim Novak | Published: 10/11/2019

With FBI agents secretly listening in, then-Chicago Ald. Danny Solis was caught on a wiretap four years ago discussing plans to solicit campaign money from a development group whose owners include sports mogul Jerry Reinsdorf, chairperson of the Chicago Bulls and White Sox, that needed his help at City Hall. Michigan Avenue Real Estate Group needed Solis’ approval for a $40 million apartment complex they later built in his ward. During a call, Solis explained, over the worries of an unidentified aide that the developers were still awaiting the alderman’s approval for the project, how he planned to solicit Reinsdorf’s business partner Thomas Meador, for campaign money. Solis wore a wire for nearly two years, secretly recording conversations at City Hall.

Maryland – ‘Maryland Is Very Corrupt’: Charges against former Del. Tawanna Gaines add to state’s corruption history
Baltimore Sun – Elliott Davis (Capital News Service) | Published: 10/17/2019

Former Maryland Del. Tawanna Gaines is scheduled to be arraigned on a federal wire fraud charge. She is charged with using an undisclosed PayPal account to accept donations to her campaign finance committee. Gaines is not alone. The arraignment adds her to the growing list of politicians in the state who have either committed crimes or ethical violations. Gaines is the third Democratic delegate from Prince George’s County alone to be charged or convicted since 2018.

Michigan – Lights Turn Green for Traffic Signal Company That Hired MDOT Director
Detroit Free Press – Paul Egan | Published: 10/14/2019

The Michigan Department of Transportation (MDOT) made a major shift in who supplies its traffic signal control equipment, just as its former director has taken an executive position with the company that benefits from the change. MDOT used to buy all its traffic signal control equipment and software from Siemens Mobility. But that changed last October, the same month Kirk Steudle, who, for the previous 12 years headed up the department, was named senior vice president of Econolite Systems, a Siemens competitor based in California. In October 2018, the state agency changed its specifications to allow the purchase of traffic signal controllers supplied by Econolite in addition to those made by Siemens.

New York – Big Questions Remain for NY’s Public Campaign Finance Plan
AP News – Marina Villeneuve | Published: 10/14/2019

A New York commission began crafting a small-donor public campaign financing system but has yet to tackle big issues such as when the program would launch and how it would be implemented. The system will provide up to $100 million in public financing to candidates for offices such as governor and Legislature who get enough small private donations. The Public Campaign Financing Commission has until December 1 to announce rules that will become law unless lawmakers hold a rare end-of-year special session to reject them.

New York – Loophole Allows People with City Business to Shower Thousands on Candidates Despite Contribution Limits
New York Daily News – Anna Sanders | Published: 10/14/2019

Contributions from people doing business with New York City were restricted in 2007 and a database was created to ensure candidates and donors complied with the law. Lobbyists pushing city policies and seeking municipal contracts for their clients are included. So are top executives and owners of companies who already have contracts and those lobbying the city. But the law allows them to act as bundlers for other donors without the same contribution limits. Critics say the arrangement leaves the door wide open for powerful and well-connected New Yorkers to influence elections and sway politicians in their favor.

New York – New York Can Now Bring Charges Against Presidential Pardon Recipients
Politico – Bill Mahoney | Published: 10/16/2019

Gov. Andrew Cuomo signed legislation that will let New York prosecutors bring charges against individuals who have received presidential pardons for related crimes. The bill was explicitly written to address fears that President Trump might use his pardon power to interfere with criminal investigations. The U.S. Supreme Court has found the constitutional prohibition on double jeopardy does not apply to the states. It does not bar state prosecutors from bringing charges against individuals who have already been tried on similar federal crimes. But New York’s existing law included additional safeguards that prohibited these second trials.

North Carolina – Solar Group Solicits Campaign Cash for Top Lawmaker, Tied Directly to Legislative Action
WBTV – Nick Ochsner | Published: 10/16/2019

A solar industry group solicited campaign contributions for a North Carolina legislator in an email to its members and tied the request for funds directly to action he had taken days earlier on a bill opposed by the group. The request came from the North Carolina Clean Energy Business Alliance on behalf of state Rep. John Szoka, chairperson of the House Committee on Energy and Public Utilities. Chris Carmody, the executive director of alliance, asked the organization’s members to donate to Szoka up to $5,200, the maximum contribution allowed under the law. The email noted Szoka and a second lawmaker for their opposition to Senate Bill 559, which would authorize Duke Energy to set energy rates for a multi-year period with relaxed oversight from state regulators.

North Dakota – North Dakota Ethics Commission Receives First Complaint
Bismarck Tribune – Jack Dura | Published: 10/10/2019

North Dakota’s new Ethics Commission has received its first complaint, but its details are not immediately available. The commission, which has met only twice, does not yet have investigative procedures for handling complaints. The panel’s next meeting agenda includes items such as establishing a website and office space and writing job descriptions for hiring staff. The commission may write and adopt rules related to transparency, elections, lobbying, and corruption, but it has yet to begin or even broach a rule-making process.

Ohio – The Right Way for a State to Purge Voters Might Be to Show How Wrong It Is
ENM News – Nicholas Casey (New York Times) | Published: 10/14/2019

Ohio is a battleground state and the site of some of the country’s strictest voting laws, from voter ID requirements to a “use-it-or-lose-it” provision that lets officials drop voters seen as inactive. That has led critics to contend parts of the state are regularly disenfranchised, largely in purges aimed at those who have died or moved away, but which also hit real voters who do not learn they cannot vote until Election Day. Rather than purge the voter rolls behind closed doors as had been done in the past, the state released the full list and gave it to advocacy groups to check. The groups said they found the list was riddled with errors. Around 40,000 people should not have been on it, the state determined. One of the names to be purged as an inactive voter was Jen Miller, director of the League of Women Voters of Ohio.

Rhode Island – Facing Penalties, IGT Discloses $776K More Was Spent in Push for New Contract
Providence Journal – Katherine Gregg | Published: 10/16/2019

Facing potential penalties of up to $5,000 and revocation of its right to lobby in Rhode Island, lottery giant IGT and an affiliate have now publicly disclosed a total of $1.2 million in spending in July, August, and September on the company’s campaign for a no-bid, 20-year contract extension to provide the technology and machines for the Rhode Island Lottery, a state-run entity that produced $397 million in revenue last year. While the company disclosed the $129,000 it paid a dozen lobbyists between July 1 and September 30, it had not disclosed how much it paid its public-relations consultants, advertisers, and affiliates to try to win public and legislative support for the contract extension.

South Carolina – SC Supreme Court Justices Grill Special Prosecutor in Quinn Public Corruption Case
The State – John Monk | Published: 10/15/2019

South Carolina’s five Supreme Court justices fired question after question at special prosecutor David Pascoe about why he wanted to undo the conviction and no-prison sentence of ex-state Rep. Rick Quinn Jr. in a high-profile public corruption case. At the heart of Pascoe’s argument was his claim that the judge who sentenced Quinn erred in allowing Quinn to plead guilty to what Pascoe asserted was a non-crime. The Supreme Court overturning the conviction could allow either a new trial or a guilty plea to a lawful charge, Pascoe has said in briefs on the case.

Texas – Dallas Council Member Violated City Code with VisitDallas Tickets, Ethics Commission Says
Dallas News – Hayat Norimine | Published: 10/15/2019

Dallas City Councilperson Casey Thomas violated the ethics code by failing to disclose over $1,600 worth of event tickets he received from VisitDallas, the city Ethics Advisory Commission said. Ahead of the commission’s vote, Thomas promised to recuse himself from any votes related to VisitDallas, the city’s tourism bureau, for the remainder of his term. He also said he fixed procedures with his staff to ensure the mistake would not happen again. The code of ethics on gifts states that city officials should not accept an item that “is intended to influence or reward” decisions and must file financial disclosure forms for any gift that exceeds $250 within a month of accepting it.

Texas – Texas GOP Speaker Tape: Lawmaker ‘vile,’ Trump ‘killing us’
AP News – Paul Weber and Clarice Silber | Published: 10/15/2019

A secretly recorded audio tape of Texas House Speaker Dennis Bonnen seeking help to oust members of his own Republican Party and profanely disparaging a Democratic House member, along with and other political scheming, has thrown the GOP-controlled Legislature into disarray at a fragile moment when their majority is at stake. The tape has uncorked the biggest political scandal in the state in years. Democrats filed a lawsuit accusing Bonnen of breaking campaign finance laws during the meeting with the head of a conservative group called Empower Texans, which has spent lavishly in pursuit of pulling the Legislature far to the right on issues such as abortion and guns. State investigators responsible for looking into allegations of corruption by public officials have also opened a case.

Virginia – A Virginia Beach Republican Says Democrats Gave His Campaign $44,000. Here’s What’s Going On.
The Virginian-Pilot – Marie Albiges | Published: 10/16/2019

A Republican delegate trying to hold onto his Virginia House seat says his Democratic opponent’s attack mailers have actually benefited his campaign, so much so that he is reporting them as a $44,000 in-kind contribution in official records submitted to the state. Davis said he feels a “legal obligation” to report the donation. The stunt in reality is a creative way to frame what is shaping up to be a close race as Democrats try to flip enough seats to seize control of the General Assembly, said Robin Cooperman, a political science professor at the University of Mary Washington. “It’s political theater, to be sure,” Cooperman said.

Wyoming – Wyoming Utility Regulator Copied, Sent Coal Lobby Letter
WyoFile.com – Andrew Graham | Published: 10/15/2019

The Wyoming Public Service Commission (PSC), in concert with five equivalent bodies from other states, recently asked the Federal Energy Regulatory Commission (FERC) to accelerate an inquiry that could subsidize coal plants in the name of electrical grid reliability. The letter of request appears to have been drafted, in part, by a coal industry lobbying group and passed through by the PSC. Emails obtained by the Energy and Policy Institute through a public records request show three paragraphs of PSC Chairperson Karen Forstrom’s letter match a model letter a representative of the American Coalition for Clean Coal Electricity provided to West Virginia public service commissioners on July 30.

October 17, 2019 • Written by Jim Sedor

Thursday’s LobbyComply News Roundup

Campaign Finance National: “Fourth Defendant in Giuliani Associates’ Case Arrested at New York Airport” by Devlin Barrett (Washington Post) for Stamford Advocate North Carolina: “Solar Group Solicits Campaign Cash for Top Lawmaker, Tied Directly to Legislative Action” by Nick Ochsner […]

October 16, 2019 • Written by Jim Sedor

Wednesday’s LobbyComply News Roundup

Campaign Finance National: “After Arrest of Giuliani Associates, FEC Chair Says Commission Struggling to Enforce Rules” by Justin Wise for The Hill National: “Warren Targets ‘Big Money’ in Campaigns, Rules Out Donations from Tech and Bank Executives” by Tal Axelrod […]

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News You Can Use Digest – October 25, 2019

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News You Can Use Digest – October 18, 2019

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