Campaign Finance

“After Lying Low, Deep-Pocketed Clinton Donors Return to the Fore” by Nicholas Confessore and Amy Chozick for New York Times

California: “California Treasurer Cracks Down on Pay to Play” by Kyle Glazier for The Bond Buyer

California: “Feds Say Azano Wanted to ‘Buy a Mayor’” by Greg Moran for San Diego Union-Tribune

Washington: “Attorney General Seeks Contempt Order against Tim Eyman” by Rachel La Corte (Associated Press) for Tacoma News Tribune

Ethics

Hawaii: “Here’s The Deal Honolulu Made with Its Departing Ethics Director” by Nick Grube for Honolulu Civil Beat

Utah: “Judge Grants State’s Motion to Dismiss Corruption Charges against Mark Shurtleff” by Ben Lockhart and Dennis Romboy for Deseret News

Elections

“Clinton’s Convention Is Made for TV. Trump’s Was Made for Twitter.” by Jim Rutenberg for New York Times

“Wikileaks Posts Hacked DNC Voicemails” by Marshall Cohen and Tom LoBianco for CNN

“And Then There Was Trump” by Thomas Edsall for New York Times

The Oklahoma Ethics Commission will conduct a third public hearing on Advisory Opinion AOR-16-01 at its regularly scheduled meeting on August 12, 2016.

Questions to be considered pertain to a candidate committee’s use of funds in making expenditures to political party committees. Three draft opinions are now available for review.

The commission will accept written and oral comments about the draft opinions; written comments may be hand-delivered, mailed, or emailed to the commission.

After being challenged in court by a lobbyist and political consultant, a proposed Denver ballot initiative was recently withdrawn by its backers.

The initiative would have lowered contribution limits for elected officials, banned corporate contributions to candidates, and created a public financing system for city elections.

The challenge alleged the initiative violated the single-subject rule for ordinances and the ballot title inadequately summarized the measure and included words intended to sway voters.

The measure was withdrawn for 2016 due to the resources required to fight the legal challenge and to run a fall campaign in such an expensive election season.

Here is our latest edition of the News You Can Use Video Digest. Have a great weekend!

NYCU Video Digest was produced by 2016 interns Brittany Anderson and Clémence Besnard for State and Federal Communications.

Federal:

A Worry if Clinton Wins: An idle ex-president in the White House
New York Times – Patrick Healy | Published: 7/26/2016

It is not clear how Bill Clinton would function as America’s first gentleman. Advisers to Hillary Clinton said she has not yet decided if she will offer her husband a formal role if elected but noted he will cease working for the Clinton Foundation, would not be a regular at Cabinet meetings, and will do what is asked of him. Beyond that, however, details are scant. The steps that Clinton aides are planning to shape his new life do little to address a potentially thornier problem: historically, when Bill Clinton does not have a job to do, he gets into trouble.

Democrats Discreetly Turn Attention to Presidential Prospects of the Future
New York Times – Michael Shear | Published: 7/26/2016

On the main stage at the Wells Fargo Center and along the sidelines of the Democratic National Convention, more than a dozen senators, mayors, governors, cabinet members, and state lawmakers are carefully peeking past this year’s presidential election to 2020 or 2024 as they work ballrooms full of delegates, donors, and activists who would be critical to the pursuit of a national campaign. Compared with Republicans, Democrats have seen fewer of their young members rise to top positions in Washington, D.C., which can be a springboard to the White House.

DNC Turmoil Confirms Warnings: Hackers are targeting campaigns
Politico – Eric Geller | Published: 7/24/2016

The downfall of Democratic National Committee Chairperson Debbie Wasserman Schultz marks a groundbreaking moment that cybersecurity experts have long seen coming: hackers are making a significant impact on a major U.S. political campaign. Cybersecurity experts have warned for years that campaigns and political parties are woefully weak in securing their data, despite the wealth of sensitive information they carry in their computer networks and email accounts. It is an ideal scenario for all kinds of cyber wrongdoers – foreign adversaries trying to swing elections, intelligence agencies seeking information on future officials, hacktivist groups looking to grab attention, and black market hackers trying to make a quick buck.

Donald Trump Calls on Russia to Find Hillary Clinton’s Missing Emails
New York Times – Ashley Parker and David Sanger | Published: 7/27/2016

Donald Trump dared a foreign government to commit espionage on the U.S. to hurt his rival, smashing yet another taboo in American political discourse and behavior. “Russia, if you’re listening, I hope you’ll be able to find the 30,000 emails that are missing,” Trump said, referring to deleted emails from the private account Hillary Clinton used as secretary of State. “I think you’ll probably be rewarded mightily by our press.” The comments immediately drew widespread attention because they lend the impression that Trump is actively encouraging another country to commit a cybercrime against the U.S. to directly affect the presidential election. If the emails are hacked and Trump wins, it also could make him appear beholden to foreign interests.

For Special Interests, the Real Party Is Outside the Convention
Center for Public Integrity – Carrie Levine and Dave Levinthal | Published: 7/22/2016

A Rick Springfield concert at the Republican National Convention was billed as “a tribute to the House Republican Whip Team” and was to benefit charity, even though there was no admission fee. During the convention, dozens of organizations sponsored such events, all with an interest in gaining access to lawmakers and power brokers. The gatherings are almost all crafted to fit into exemptions in gift and ethics rules that allow members of Congress to come to “widely attended events” or charitable fundraisers. “These exemptions very quickly become major loopholes to allow lobbyists and others to put on events for officeholders and allow officeholders to go to them for free,” said Lawrence Noble, general counsel for the Campaign Legal Center.

In Hacked D.N.C. Emails, a Glimpse of How Big Money Works
New York Times – Nicholas Confessore and Steve Eder | Published: 7/25/2016

The leaked documents from the Democratic National Committee included thousands of emails exchanged by party officials and fundraisers, revealing in rarely seen detail the elaborate, ingratiating, and often bluntly transactional exchanges necessary to collect hundreds of millions of dollars from the party’s wealthy donors. The emails capture a world where seating charts are arranged with dollar totals in mind, where a White House celebration of gay pride is a thinly disguised occasion for rewarding wealthy donors, and where physical proximity to the president is the most precious of currencies.

IRS Gives Opposite Rulings to Convention Committees
Bloomberg BNA – Kenneth Doyle | Published: 7/25/2016

When Cleveland’s host committee for the Republican National Convention applied for charitable tax-exempt status nearly two years ago, approval by the IRS came in just 12 days. Philadelphia’s host committee for the Democratic National Convention was not so lucky. While neither the committee nor the IRS will discuss details, it is clear that approval of the Philadelphia committee’s request for the same charitable tax-exempt status did not come quickly and ultimately was denied. The Philadelphia host committee reportedly is trying to work around fundraising problems caused by IRS disapproval of its exempt status. The full impact of the IRS ruling is not yet clear, partly because the host committee is asking a state court to keep information about its donors under wraps until a federal disclosure report must be filed with the FEC two months after the convention ends.

Lobbyists Celebrate Democratic Party’s New Embrace at Convention
Time – Jay Newton-Small | Published: 7/26/2016

Heather Podesta wore a scarlet letter “L” to the last two Democratic National Conventions, a not so subtle protest over Barack Obama’s ban on lobbyists like her donating money to his cause. Podesta’s scarlet letter is gone this week because Hillary Clinton and the Democratic National Committee have lifted the ban. Podesta is just one of a legion of lobbyists coming out of the proverbial closet this convention, free to raise money, support candidates, and be proud of it for the first time in nearly a decade. Campaign finance reformers have watched the change happen with dismay.

Report: FEC leaders, managers share blame for horrid morale
Center for Public Integrity – Dave Levinthal | Published: 7/26/2016

The office of the FEC’s inspector general for months has conducted employee surveys and interviews in hopes of answering a nagging question: why, specifically, is agency morale so consistently poor? Investigators place the most blame on the six commissioners: three Democratic appointees and three Republican appointees who have regularly criticized one another and frequently deadlocked on high-profile political issues before them. The report came about in response to separate study that ranked FEC staff morale second to last among 41 small federal agencies studied.

From the States and Municipalities:

Alaska – Oil Lobbyist Treated Legislator to Meal after Oil Tax Vote
Alaska Dispatch News – Nathaniel Herz | Published: 7/25/2016

Alaska Rep. Mike Hawker accepted a $78 dinner from an oil company lobbyist the same day Hawker went to Juneau for his first vote in two months, casting the deciding vote on an oil tax bill criticized as being too industry friendly. The meal was purchased by ConocoPhillips lobbyist Michael Hurley on June 6, the same day House Bill 247 was approved 21-to-19. Hawker’s presence was essential because the Alaska Constitution requires 21 votes for passage of a bill. Hawker is suffering from terminal cancer and had not attended a floor session since early April.

California – California Treasurer Cracks Down on Pay to Play
The Bond Buyer – Kyle Glazier | Published: 7/27/2016

California Treasurer John Chiang announced that municipal finance firms seeking state business will be required to certify they will make no contributions to local bond election campaigns. State officials are concerned with “pay-to-play” tactics in which bond counsel, underwriters, and financial advisors are offering to fund or provide campaign services in exchange for contracts to issue the bonds once they are approved by voters. The new policy applies to firms and their employees, and includes both cash and-in kind contributions made either directly or through third parties. Firms that fail to make the pledge will be removed from the state’s official list of acceptable vendors and barred from participating in state-issued bonds.

California – California Wants People to Prove They Are Not Lobbyists
KPCC – Alison Noon (Associated Press) | Published: 7/21/2016

The California Fair Political Practices Commission approved a regulatory change aimed at encouraging so-called shadow lobbyists to disclose their efforts to influence legislation. Lobbyists are required to register with the state if the amount they make for communicating with government officials reaches $2,000 in any given month. The rule change permits investigators to demand evidence about lobbyists’ compensation and financial gain related to contact with government officials. It suggests that suspected unregistered lobbyists testify or provide bills, receipts, or other records to establish their compensation was not used to get access to lawmakers or dine and entertain them.

Texas – City Wins Lawsuit Despite Appearance of Loss
Austin Monitor – Jo Clifton | Published: 7/22/2016

A federal judge ruled a blackout period banning candidates in Austin from fundraising outside of the six months before Election Day is unconstitutional. U.S. District Court Judge Lee Yeakel also overturned the dissolution requirements governing candidates’ left-over campaign money. The decision upheld the $350 individual cap on donations as well as the aggregate limit on contributions from persons who live outside the city.

Virginia – As Pick for No. 2, Tim Kaine Sees Gifts Come Under Scrutiny
New York Times – Eric Lipton and Steve Eder | Published: 7/24/2016

With U.S. Sen. Tim Kaine’s selection as Hillary Clinton’s vice-presidential running mate, the gifts he received in the four years he served as Virginia’s chief executive and his time as lieutenant governor before that are certain to be cited by his Republican critics as a sign that Kaine is not as squeaky clean as he portrays himself. An examination by The New York Times of archival email traffics from Kaine’s tenure as governor shows he received gifts, in some cases, around the same time he and his staff were considering official government requests from these donors.

State and Federal Communications produces a weekly summary of national news, offering more than 60 articles per week focused on ethics, lobbying, and campaign finance.

California Treasurer John Chiang announced that municipal finance firms seeking state business will be required to certify that they do not make contributions to bond election campaigns. Firms that fail to provide the certification will be suspended from the state’s pool of acceptable underwriters.

The new requirement aims to stop pay-to-play deals where municipal finance firms offer to fund or provide campaign services in exchange for contracts.

Photo of John Chiang by State of California on Wikimedia Commons.

Lobbying

“Lobbyists Celebrate Democratic Party’s New Embrace at Convention” by Jay Newton-Small for Time

California: “Judge Questions Private Talks Between Coastal Commissioners and Developer’s Consultants” by Dan Weikel for Los Angeles Times

Campaign Finance

“George Soros Rises Again” by Kenneth Vogel for Politico

California: “‘Behested Payments’ Add Another Layer of Money in Politics” by Tracy Wood for Voice of OC

Indiana: “Eric Holcomb’s Access to Mike Pence’s Campaign Cash Might Be Restricted” by Tony Cook for Indianapolis Star

Ethics

Texas: “Texas AG Took Gift While Investigating Company” by Associated Press for Texarkana Gazette

Elections

“Donald Trump Calls on Russia to Find Hillary Clinton’s Missing Emails” by Ashley Parker and David Sanger for New York Times

“Bill Clinton Praises His Wife’s Feminine Side” by Patrick Healy for New York Times

“Democrats Discreetly Turn Attention to Presidential Prospects of the Future” by Michael Shear for New York Times

Lobbying

Alaska: “Oil Lobbyist Treated Legislator to Meal after Oil Tax Vote” by Nathaniel Herz for Alaska Dispatch News

Campaign Finance

“In Hacked D.N.C. Emails, a Glimpse of How Big Money Works” by Nicholas Confessore and Steve Eder for New York Times

“Report: FEC leaders, managers share blame for horrid morale” by Dave Levinthal for Center for Public Integrity

“DNC Sought to Hide Details of Clinton Funding Deal” by Kenneth Vogel and Isaac Arnsdorf for Politico

Ethics

California: “Grand Jury Finds Cracks in Ethics Policies” by Joshua Stewart for San Diego Union-Tribune

Kentucky: “Bevin Questions Grant to Jane Beshear Charity” by Tom Loftus for Louisville Courier-Journal

Elections

“Clinton Highlights Lack of Women in Office” by Christina Cassidy (Associated Press) for ABC News

“A Worry if Clinton Wins: An idle ex-president in the White House” by Patrick Healy for New York Times

California: “Why a New Law Isn’t Shrinking the Overload of Ballot Initiatives Much – Yet” by Laurel Rosenhall (CALmatters) for Long Beach Press-Telegram

Campaign Finance

“IRS Gives Opposite Rulings to Convention Committees” by Kenneth Doyle for Bloomberg BNA

California: “Campaign Cash: A Journey Through the Cal-Access Labyrinth” by Cosmo Garvin for Capitol Weekly

Connecticut: “U.S. Attorney Opens Probe of Malloy’s 2014 Campaign Fundraising” by Keith Phaneuf and Mark Pazniokas for CT Mirror

Ethics

“As Pick for No. 2, Tim Kaine Sees Gifts Come Under Scrutiny” by Eric Lipton and Steve Eder for New York Times

Massachusetts: “Supreme Court’s Corruption Decision Could Affect Mass. Cases” by Shelley Murphy for Boston Globe

New York: “N.Y. Lawmakers Seek to Strengthen State Bribery Law” by Matthew Hamilton for Albany Times Union

Elections

“DNC Turmoil Confirms Warnings: Hackers Are Targeting Campaigns” by Eric Geller for Politico

Louisiana: “Former KKK Leader David Duke, Citing Trump, Announces Senate Bid” by Elise Viebeck for Washington Post

Lobbying

“For Special Interests, the Real Party Is Outside the Convention” by Carrie Levine and Dave Levinthal for Center for Public Integrity

California: “California Wants People to Prove They Are Not Lobbyists” by Alison Noon for KPCC

Connecticut: “CT GOP Delegates, This Meal Is Brought to You by …” by Mark Pazniokas for CT Mirror

Campaign Finance

Texas: “City Wins Lawsuit Despite Appearance of Loss” by Jo Clifton for Austin Monitor

Ethics

Connecticut: “Wade Fires Back at Critics” by Christine Stuart for CTNewsJunkie.com

Hawaii: “School Cleared in Ethics Case” by Nathan Eagle for Honolulu Civil Beat

Maryland: “Del. Dan Morhaim, Advocate of Medical Marijuana, Draws Scrutiny for Role in Firm” by Pamela Wood and Erin Cox for Baltimore Sun

Pennsylvania: “Feds Charge Ex-Pa. Treasurer Hafer with Lying and Millionaire Donor with Fraud in Pay-to-Play Probe” by Mark Fazlollah, Craig McCoy, and Dylan Purcell for Philadelphia Inquirer

South Carolina: “Ethics Commission Narrows Governor’s Allowed Use of USC Football Tickets” by Maya Prabhu for Charleston Post & Courier

South Carolina: “Ethics Board Tells Candidates When It’s OK to Pay Family with Donations” by Seanna Adcox (Associated Press) for Aiken Standard

Elections

“Hillary Clinton Selects Tim Kaine, a Popular Senator from a Swing State, as Running Mate” by Amy Chozick, Alan Rappeport, and Jonathan Martin for New York Times

“DNC Chairwoman Will Resign in Aftermath of Committee Email Controversy” by Anne Gearan, Philip Rucker, and Abby Phillip for Washington Post

Texas: “Appeals Court Says Texas Voter-ID Law Discriminates Against Minorities” by Robert Barnes for Washington Post

Wisconsin: “Judge Issues Injunction, Allows Voters without IDs to Cast Ballots” by Patrick Marley and Jason Stein for Milwaukee Journal Sentinel

Gov. Asa Hutchinson was the subject of a probable cause hearing scheduled by the Ethics Commission on July 22, 2016.

Attorney Matt Campbell filed a complaint on March 31, claiming Hutchinson violated campaign practices law by campaigning for other candidates during “usual office hours.” If prosecuted, Hutchinson could face up to a year in jail, a $1,000 fine, and removal from office.

St. Petersburg Councilwoman Darden Rice will introduce a proposed ordinance to abolish super PACs and ensure foreign money stays out of city elections.

The ordinance would establish limits for independent expenditure committees and would require corporations contributing money to local elections to certify they are not influenced by foreign entities.

Rice hopes the ordinance will act as a model for similar laws around the country, potentially leading to a legal challenge. This could give the U.S. Supreme Court an opportunity to reconsider Citizens United.

A legislative committee has voted against a proposed bill to finance Suffolk County candidates’ campaigns with future casino revenues and to increase term limits from two to four years. Specifics of the bill include a 4-to-1 match for donations up to $150 for all candidates who agree to a $1,000 cap on contributions.

As a result of the vote, the bill will not appear on the November ballot, but an initiative to allow a video slot machine casino in the Village of Islandia will.

The campaign finance bill’s sponsor, Legislator Rob Calarco, has indicated he would reintroduce his legislation if voters approve the casino initiative.

Here is our latest edition of the News You Can Use Video Digest. Have a great weekend!

NYCU Video Digest was produced by 2016 interns Brittany Anderson and Clémence Besnard for State and Federal Communications.