Campaign Finance

National: “New Members, Meet the ‘Slush Fund’” by Stephanie Aikin for Roll Call

National: “At Trump’s Inauguration, $10,000 for Makeup and Lots of Room Service” by Maggie Haberman, Sharon LaFraniere, and Benn Protess (New York Times) for MSN

Montana: “U.S. Supreme Court Declines to Take Up Montana Campaign Finance Case” by Holly Michels for Helena Independent Record

New York: “Legislature Passes Sweeping Electoral Reforms” by Rachel Silberstein for Albany Times Union

Ohio: “Columbus Council Appoints Shayla Favor, Approves Campaign Finance Reforms” by Gabe Rosenberg for WOSU

Oklahoma: “Oklahoma Ethics Commission Bans Leadership PACs” by Nolan Clay for The Oklahoman

Ethics

National: “Steve King Stripped of Committee Seats – with More Punishment Coming” by Heather Caygle, Sarah Ferris, and John Bresnahan for Politico

Colorado: “Colorado Ethics Commission Narrows Complaint Against John Hickenlooper” by Nic Garcia for Denver Post

Oregon: “Oregon Senate President’s Longtime Aide Resigns Over Harassment Allegations” by Hillary Borrud for Portland Oregonian

The challenge on Montana’s contribution limits has ended. The U.S. Supreme Court did not take up the case regarding campaign finance in Montana.

The 1994 law establishing the contribution limits was struck down in 2012 and 2015, but the 9th U.S. Circuit Court of Appeals reinstated the limits in October 2017.

Proponents of the case said the low limits violated the First Amendment, while opponents said the limits encouraged more civil engagement.

Campaign Finance

California: “Downtown L.A. Development Is a Focus of FBI Corruption Probe” by Emily Alpert Reyes and David Zahniser for Los Angeles Times

Oklahoma: “Stitt Inauguration Donors May Not Be Revealed Until Summer” by Trevor Brown for Oklahoma Watch

Ethics

National: “Trump Has Concealed Details of His Face-to-Face Encounters with Putin from Senior Officials in Administration” by Greg Miller (Washington Post) for Chicago Tribune

National: “F.B.I. Opened Inquiry into Whether Trump Was Secretly Working on Behalf of Russia” by Adam Goldman, Michael Schmidt, and Nicholas Fandos (New York Times) for MSN

Arkansas: “Former Arkansas Senator Charged with Conspiracy in Bribery Scheme” by Andrew DeMillo (Associated Press) for Hot Springs Sentinel

Illinois: “Mayor Rahm Emanuel Unveils Ethics Plan Following Ald. Edward Burke’s Criminal Charge” by John Byrne for Chicago Tribune

New Mexico: “Former Governor Will Relinquish Squash Blossom Necklace” by Thom Cole for Santa Fe New Mexican

Lobbying

National: “Ex-Lawmakers ‘Scrambling and Looking’ for Lobbying Gigs” by Theodoric Meyer for Politico

Campaign Finance

Washington: “Split Court: Local initiatives subject to disclosure rule” by Gene Johnson (Associated Press) for KOMO

Ethics

National:”Prosecutors Examining Ukrainians Who Flocked to Trump Inaugural” by Kenneth Vogel, Scott Shane, Mark Mazzetti, and Iuliia Mendel (New York Times) for MSN

National: “Tom Udall to Introduce Senate Campaign Finance, Voting Rights and Ethics Reform Bill” by Richard Blumenthal for Huffington Post

National: “Michael Cohen Agrees to Testify to Congress About Work for Trump” by Maggie Haberman and Nicholas Fandos (New York Times) for MSN

Colorado: “Judge: State ethics panel has no jurisdiction over many Colorado cities” by Marianne Goodland for Colorado Politics

Kentucky: “He Bribed Andy Beshear’s Top Deputy. Now He’s Headed to Prison for Nearly 3 Years.” by Bill Estep for Lexington Herald-Leader

South Carolina: “SC Ethics Advocate Creates Ethics Dilemma by Gifting Corruption Book to Lawmakers” by Avery Wilkes for The State

Legislative Issues

Texas: “Texas Republicans Rally Behind Muslim Official as Some Try to Oust Him Over Religion” by Adeel Hassan (New York Times) for MSN

The Hawaii Campaign Spending Commission submitted four measures for introduction in the 2019 legislative session, proposing changes for Super PACs, candidate committees and electioneering communications.

Proposal CSC-01 (19) would change the disclosure date for electioneering communications to when the electioneering communication is publicly distributed rather than when the contract for the electioneering communication is executed. Additionally, the expenditure aggregate would be increased to $2,000, all mailings and not just those sent at bulk rate would be covered, and candidate and noncandidate committees would be required to file statements of information.

Proposal CSC-02 (19) would require candidate committees to file a first Preliminary General Report on October 1.

Proposal CSC-03 (19) would impose a $5,000 fine on Super PACs that received at least one contribution of more than $10,000 from any one person or spent more than $10,000 aggregate in an election period and would permit the fine to be up to three times the amount of the unlawful contribution or expenditure. The measure would also call for the fine to be paid from the personal funds of an officer of the noncandidate committee.

Finally, Proposal CSC-04 (19) would require candidates who do not intend to have more than $1,000 in activity to provide notice to the Commission of such intent by June 30 of an election year and to require noncandidate committees who do not intend to have more than $1,000 in activity to provide notice to the Commission of such intent by the fifth calendar day prior to the due date of the Preliminary Primary Report.

Federal:

Feds’ GoFundMe Campaigns Open a ‘Minefield’ of Ethical Questions During Shutdown
Federal News Network – Nicole Ogrysko | Published: 1/8/2019

The Office of Government Ethics said employees on unpaid furlough due to the government shutdown remain covered by federal ethics policies. Many of those on furlough are exploring taking outside jobs or applying for unemployment benefits. Some are soliciting donations on “GoFundMe” pages to ease the financial uncertainty of likely missed paychecks. But existing rules open a “minefield” of questions about how the employees can ask for contributions during shutdown furloughs, if at all, said Virginia Canter, an attorney for Citizens for Responsibility and Ethics in Washington. Typically, federal employees cannot accept gifts from “prohibited sources,” or organizations that do business with the employee’s agency. With that in mind, federal employees soliciting shutdown donations would need to ensure the source of every contribution.

How a Little-Known Democratic Firm Cashed in On the Wave of Midterm Money
Washington Post – Michelle Ye Hee Lee and Anu Narayanswamy | Published: 1/8/2019

Mothership Strategies, a little-known and relatively new digital consulting firm, collected tens of millions of dollars from a tide of small donations that flowed to Democrats during the 2018 midterm elections. The firm’s rapid ascendancy as one of the highest-paid vendors of the election since its launch speaks to how lucrative the explosion of small-dollar contributions has been for a group of political consultants who saw the wave of cash coming and built a business model to capitalize. But Mothership Strategies’ rise also has sparked consternation in Democratic circles because of its aggressive and sometimes misleading tactics. Some call its approach unethical, saying the company profits off stoking fear of Donald Trump and making the sort of exaggerated claims they associate with the president.

Manafort Intended for Polling Data to Go to 2 Ukrainian Oligarchs, a Source Says
Pittsburgh Post-Gazette – Katelyn Polantz and Evan Perez (CNN) | Published: 1/9/2019

Serhiy Lyovochkin and Rinat Akhmetov, two Ukrainian oligarchs who had paid Paul Manafort for years for his political work in their country, were the intended recipients of American polling data that Manafort shared with Konstantin Kilimnik during the 2016 presidential campaign, a person familiar with the matter said. Special counsel Robert Mueller’s team has been circling Lyovochkin and Akhmetov’s dealings with Manafort, as they were both generous backers of Manafort’s Ukrainian lobbying work. Manafort spokesperson Jason Maloni confirmed Manafort expected to receive the $2.4 million in income from his Ukrainian political backers, including Lyovochkin and Akhmetov. But the money was meant to reimburse old debts that predated the Trump campaign, spokesman Maloni added, and it was not a quid pro quo for the polling data.

Supreme Court to Hear Cases on Partisan Gerrymandering in Maryland, N. Carolina
Salt Lake Tribune – Robert Barnes (Washington Post) | Published: 1/4/2019

The U.S. Supreme Court once again will take up unresolved constitutional questions about partisan gerrymandering, agreeing to consider rulings from two lower courts that found congressional maps in North Carolina and Maryland so extreme they violated the rights of voters. The North Carolina map was drawn by Republicans, the Maryland districts by the state’s dominant Democrats. The Supreme Court has never found a state’s redistricting map so infected with politics that it violates the Constitution. It passed up the chance last term to settle the issue of whether courts have a role in policing partisan gerrymandering, sending back on technical rulings challenges to a Republican-drawn plan in Wisconsin, and the challenged Maryland map. But there will be a new set of justices considering the issue.

From the States and Municipalities:

Alabama: Secret Campaign to Use Russian-Inspired Tactics in 2017 Ala. Election Stirs Anxiety for Democrats
Denver Post – Craig Timberg, Tony Romm, Aaron Davis, and Elizabeth Dwoskin (Washington Post) | Published: 1/6/2019

A secret effort to influence the 2017 U.S. Senate election in Alabama used tactics inspired by Russian disinformation teams, including the creation of fake accounts to deliver misleading messages on Facebook to help elect Democrat Doug Jones in the deeply red state. But unlike the 2016 presidential campaign when Russians worked to help elect Donald Trump, the people behind the Alabama effort, dubbed Project Birmingham, were Americans. Now Democratic operatives and a research firm known to have had roles in Project Birmingham are distancing themselves from its most controversial tactics. Jones’s upset victory over Roy Moore in all likelihood resulted from other factors, political analysts say. But news of the effort has underscored the warnings of disinformation experts who have said threats to transparent political discourse in the age of social media are as likely to be domestic as foreign.

California: As Fires Ravaged California, Utilities Lobbied Lawmakers for Protection
MSN – Ivan Penn (New York Times) | Published: 1/5/2019

As more wildfires are traced to equipment owned by California’s investor-owned utilities, the largest, Pacific Gas and Electric, could ultimately have to pay homeowners and others an estimated $30 billion for causing fires over the last two years. Realizing their potential fire liability is large enough to bankrupt them, the utility companies are spending tens of millions of dollars on lobbying and campaign contributions. Their goal is a law that would allow them to pass on the cost of wildfires to their customers in the form of higher electricity rates. After an earlier lobbying push, legislators have already voted to protect the companies from having to bear the cost of fires in 2017, and utilities are seeking the same for 2018.

California: Irvine City Council Strengthens Lobbyist Policy
Voice of OC – Spencer Custodio | Published: 1/10/2019

The Irvine City Council strengthened its conflict-of-interest policy by adding a provision to its contracts which says if a council member or employee lobbied on behalf of a city contractor, the contract can be voided with cause and the city will get reimbursed. While there was a similar contract provision preventing employment of a city official by a city contractor, it did not address lobbying services – paid or unpaid.

Connecticut: Under the Influence: Marijuana industry seeks ruling on legality of political contributions in Connecticut
Hartford Courant – Neil Vigdor | Published: 1/8/2019

The pioneers of Connecticut’s growing medical marijuana industry say they should be allowed to donate to lawmakers who could make the state the next lucrative frontier for recreational cannabis. State election regulators came to the opposite conclusion on an informal basis early last year, finding medical marijuana growers and dispensaries are subject to the same ban on campaign contributions by state contractors under state law. But those business owners are disputing that “licensing arrangements” between the state and 18 dispensaries are contracts. They petitioned the State Elections Enforcement Commission for a formal ruling on their status.

Georgia: State Ethics Director Put on Paid Leave Over Porn, Misconduct Allegations
WSB – Richard Belcher | Published: 1/8/2019

The Georgia Government Transparency and Campaign Finance Commission voted to put Executive Director Stefan Ritter on paid leave and conduct an investigation after allegations he had pornography on his work computer. There also were complaints about his job performance, including irregular work hours. Ritter, who worked for over a decade as an assistant attorney general before taking over the commission, has been credited with cleaning up the troubled agency, reducing backlogs, and helping get raises for staff.

Maryland: Federal Judge Stops Enforcement of Maryland Election Law
Courthouse News Service – Edward Ericson Jr. | Published: 1/4/2019

A federal judge enjoined Maryland from enforcing a law aimed at preventing foreign interference in state elections while a challenge by a group of newspapers plays out in court. The Online Electioneering Transparency and Accountability Act 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, among other provisions. Some of the information the law demands is proprietary, such as how many people the ads reached. Much of the rest, U.S. District Court Judge Paul Grimm found, is duplicative.

Michigan: Whitmer Choice Raises Questions About State’s Conflicts of Interest Laws
Detroit Free Press – Paul Egan | Published: 1/7/2019

Michigan Gov. Gretchen Whitmer named Orlene Hawks as director of the Department of Licensing and Regulatory Affairs (LARA), an agency with responsibilities that include oversight of Michigan’s new marijuana industry, liquor licensing, the regulation of utilities, and licensing of doctors and hospitals. Hawks is married to Michael Hawks, an owner and principal of Government Consultant Services Inc., which represents many clients affected by the policies and rulings of LARA and its sub-agencies. An ethics expert said the potential issues raised by the situation underline a need for stronger financial disclosure and conflict-of-interest laws in Michigan.

Montana: Montana’s Dark Money Detective
Pacific Standard – Jimmy Tobias | Published: 1/9/2019

With a history of ant-corporate populism and intimate electoral campaigns, Montana is the sort of place where someone can run for office without a lot of money and still stand a chance. It is a state with just a million people and little tolerance for big money meddling in elections. As the former commissioner of political practices, Jonathan Motl set an example for other states that are also contending with the influence of unaccountable election spending. A ruling by the state Supreme Court upholding a conviction against former Sen. Art Wittich for corruption and violating campaign finance laws was a vindication and a climactic moment in Montana’s anti-corruption efforts.

Oklahoma: Stitt Unveils Plan to Address Potential Business Conflicts
Oklahoma Watch – Paul Monies | Published: 1/7/2019

Incoming Oklahoma Gov. Kevin Stitt is asking the state attorney general to review his plan to step away from his mortgage company as it becomes a bank and to approve a conflict-of-interest policy for his family investments. Stitt is facing potential conflicts-of-interest related to Gateway Mortgage Group, which he founded, and possibly some real estate and other personal investments. The first step in this shift from private businessperson to public official has to do with the state banking commission. Stitt pledged to have no contact with the state banking commissioner on Gateway-related matters, as it is converting to a bank. The governor appoints the banking commissioner and members of the state banking board.

Oregon: BOLI Finds ‘Substantial Evidence’ of Sexual Harassment at Oregon Capitol
Portland Oregonian – Ted Sickinger and Hillary Borrud | Published: 1/3/2019

Oregon labor regulators found “substantial evidence” of sexual harassment at the Capitol, concluding that lawmakers and administrators have known about it for years and did little to stop it. The Bureau of Labor and Industries released its findings after a five-month investigation, as well as a laundry list of allegations gleaned from witness interviews conducted by agency investigators, legislative analysts, and an attorney hired by the Legislature to investigate the harassment claims. The report concludes the most powerful lawmakers and administrators in the Capitol mishandled, downplayed and ignored allegations of sexual harassment, including inappropriate touching, sexually suggestive language, and the lopsided power dynamics that enabled the behavior.

Washington: From Campaign Consultant to Lobbyist and Adviser: The firm that has Seattle Mayor Jenny Durkan’s ear
Seattle Times – Daniel Beekman and Lewis Kamb | Published: 1/6/2019

Political operatives Sandeep Kaushik and Kelly Evans helped Jenny Durkan win Seattle’s mayoral race in 2017. As Durkin embarks on her second year, they and their company, Sound View Strategies, have emerged as key players at City Hall. They successfully ran the mayor’s campaign for a $600 million education levy. Durkan’s major-initiatives director, office administrator, and chief of staff all are former Sound View employees. Kaushik describes himself and Evans as members of Durkan’s informal “kitchen cabinet,” even as they lobby her administration and advocate for corporate clients such as Comcast and Airnub. The mayor downplayed Sound View’s clout. Her ties to the company are known, and the city’s requirements are adequate to protect against real and perceived conflicts, Durkin said.

Campaign Finance

National: “How a Little-Known Democratic Firm Cashed in On the Wave of Midterm Money” by Michelle Ye Hee Lee and Anu Narayanswamy for Washington Post

Connecticut: “Under the Influence: Marijuana industry seeks ruling on legality of political contributions in Connecticut” by Neil Vigdor for Hartford Courant

Montana: “Montana’s Dark Money Detective” by Jimmy Tobias for Pacific Standard

Elections

California: “Supreme Court Rules Against Mystery Corporation from ‘Country A’ Fighting Subpoena in Mueller Investigation” by Robert Barnes, Devlin Barrett, and Carol Leonnig (Washington Post) for San Jose Mercury News

Ethics

National: “Feds’ GoFundMe Campaigns Open a ‘Minefield’ of Ethical Questions During Shutdown” by Nicole Ogrysko for Federal News Network

National: “Pro-Pruitt Group Took Big Checks in Secret” by Alex Guillen for Politico

Georgia: “State Ethics Director Under Ethics Investigation” by Dale Russell for WAGA

Hawaii: “Why Critics Say New House Sexual Harassment Policy Doesn’t Go Far Enough” by Anita Hofschneider for Honolulu Civil Beat

New York: “As Session Starts, Legislators and Advocates Push Overhaul of State Ethics Enforcement” by Samar Khurshid for Gotham Gazette

Legislative Issues

National: “Young People Power into Statehouses and City Halls” by Graham Vyse for Governing

On June 13, 2019, amendments to the Canada Elections Act affecting spending limits for third parties and political parties takes effect. Bill C-76, the Elections Modernization Act, received Royal Assent on December 13, 2018.

The bill is scheduled to take effect six months after Royal Assent, unless Elections Canada determines some portion of the law should take effect earlier. The legislation establishes measures to increase transparency regarding the participation of third parties in the electoral process by adding reporting requirements for third parties engaging in partisan activities, partisan advertising, and election surveys.

Additionally, the bill creates an obligation for third parties to open a separate bank account for expenses and creates an obligation for political parties and third parties to identify themselves in partisan advertising.

The bill also extends voting hours on advance polling days to encourage participation in the election process for voters. Bill C-76 also amends the Parliament of Canada Act to prevent the calling of a by-election for a vacant seat in the House of Commons within nine months before a scheduled general election.

The North Carolina State Board of Elections increased the contribution limit in the state to $5,400 for candidate committees and others that are subject to legal limits.

State law ties the amount to inflation based on the Consumer Price Index, which had a 4.7% increase from July 1, 2016, to July 1, 2018.

The new limit will remain in effect through December 31, 2020.

Campaign Finance

Oklahoma: “Stitt Unveils Plan to Address Potential Business Conflicts” by Paul Monies for Oklahoma Watch

Elections

National: “Paul Manafort Shared 2016 Polling Data with Russian Employee, According to Court Filing” by Rachel Weiner and Spencer Hsu (Washington Post) for San Jose Mercury News

Ethics

National: “Court: EPA must release Wheeler’s emails, documents” by Dino Grandoni (Washington Post) for San Jose Mercury News

New Jersey: “Katie Brennan Sues New Jersey, Murphy Campaign and Al Alvarez in Alleged Sexual Assault” by Dustin Racioppi for Bergen Record

Lobbying

National: “Former Lawmakers, Staff Quickly Set Up on K Street” by Kate Ackley for Roll Call

Florida: “Some City Workers Can Accept Gifts, Ethics Commission Says” by Lisa Solomon for South Florida Sun Sentinel

Michigan: “Whitmer Choice Raises Questions About State’s Conflicts of Interest Laws” by Paul Egan for Detroit Free Press

Vermont: “Health Care Industry Injects Big Spending in Statehouse Lobbying” by Kit Norton and Felippe Rodrigues for VTDigger.org

Campaign Finance

National: “Federal Judge Stops Enforcement of Maryland Election Law” by Edward Ericson Jr. for Courthouse News Service

Michigan: “Snyder Veto Spree Takes Down GOP Power Play Proposal, 40 Other Bills” by Jonathan Oosting for Detroit News

Pennsylvania: “Former Reading Official Sentenced to 18 Months in Bribery Case with Ties to Allentown Pay-to-Play Probe” by Peter Hall for Allentown Morning Call

Elections

National: “Secret Campaign to Use Russian-Inspired Tactics in 2017 Ala. Election Stirs Anxiety for Democrats” by Craig Timberg, Tony Romm, Aaron Davis, and Elizabeth Dwoskin (Washington Post) for Denver Post

Ethics

Oregon: “BOLI Finds ‘Substantial Evidence’ of Sexual Harassment at Oregon Capitol” by Ted Sickinger and Hillary Borrud for Portland Oregonian

Washington: “From Campaign Consultant to Lobbyist and Adviser: The firm that has Seattle Mayor Jenny Durkan’s ear” by Daniel Beekman and Lewis Kamb for Seattle Times

Lobbying

California: “As Fires Ravaged California, Utilities Lobbied Lawmakers for Protection” by Ivan Penn (New York Times) for MSN

Redistricting

National: “Supreme Court to Hear Cases on Partisan Gerrymandering in Maryland, N. Carolina” by Robert Barnes (Washington Post) for Salt Lake Tribune

U.S. District Judge Paul W. Grimm, has enjoined Maryland from enforcing M.C.E.L. §§ 13-405 and 13-405.1.

The statutes in question, require online platforms, like search engines and social media sites, to publicly disclose the contact information and amount paid by the purchaser to the online platform for the placement of the qualifying paid digital communication within 48 hours.

In the 50-page opinion, the judge concludes the statutes encroach on First Amendment freedoms. The state may file an interlocutory appeal.

Effective January 8, a lobbyist who had also been elected to public office is prohibited from making or authorizing, from political contributions accepted as a candidate or officeholder, a political expenditure that is a political contribution to a candidate, officeholder, or political committee.

This restriction applies after the ending date of the last term for which the lobbyist was elected to public office. This law was created by House Bill 505 of the 2017 Legislature and adds Section 305.029 to the Government Code.

On December 14, 2018, the Texas Ethics Commission adopted an amendment to Texas Ethics Commission Rules §50.1, increasing the legislative per diem from $190 to $221.

Per Texas law, the detailed reporting threshold for food and beverages, entertainment, transportation, and lodging is 60 percent of the legislative per diem.

The detailed reporting threshold therefore increased to $132.60 for these expenditures made on or after January 6, 2019.

The first piece of legislation introduced into the new U.S. House of Representative was a sweeping 571-page campaign finance bill. Introduced by Rep. John Sarbanes, House Bill 1, the For the People Act, requires any organization involved in political activity to disclose its largest donors, creates a multiple matching system for small donations for political campaigns, and amends rules governing super PACs.

The bill also restructures the Federal Election Commission, amends the federal conflict of interest law, and expands the revolving door provision by prohibiting members of Congress from serving on corporate boards. If passed, the bill also requires presidential candidates to disclose their tax returns, prohibits partisan gerrymandering, increases oversight over election vendors, creates an automatic voter registration across the country, and changes registration requirements for lobbyists and foreign agents.

Sarbanes argued the rational for the bill in his press release, stating, “The bold, transformative set of reforms that we introduced today will strengthen our democracy and return political power to the people by making it easier, not harder, to vote, ending the dominance of big money in our politics and ensuring that public officials actually serve the public.”