Lobbying

Canada: “Foreign lobbying transparency bill another attack on environmental groups: critics” by Mark Burgess in The Hill Times.

Iowa: “Lobbyists of All Kinds Flock to Farm Bill” by Peggy Lowe on Iowa Public Radio.

Kansas: “Hearing held on 38 Studios lobbying questions” by The Associated Press in The Wichita Eagle.

Campaign Finance

“Lawrence Lessig’s Public Q&A on How His $12 million Super PAC Will Fix Campaign Finance” by Rebecca Chao in TechPresident.

California: “San Diego Ethics Commission Votes To Rein In Independent Committees” by Joe Yerardi in KPBS.

Connecticut: “Banned Donors Skirt Law Designed To Prevent Pay-To-Play” by Dave Altimari and Matthew Kauffman in the Hartford Courant.

Maine: “Analysis: One candidate’s unfair campaign finance law is another’s protection” by Mario Moretto in the Maine Daily Journal.

Maryland: “Excuses abound for Md. campaign report failings” by The Associated Press in The Washington Post.

Massachusetts: “Union fights to strip reporting provision from campaign finance reform bill” by Frank Phillips in The Boston Globe.

Missouri: “Money, Money, Money: Five Things To Look For In Tuesday’s Campaign Finance Reports” by Jason Rosenbaum on KBIA.

Ethics

Indiana: “Bennett accepts $5,000 fine in ethics settlement” by Tom LoBianco (Associated Press) in the Naples Daily News.

Nevada: “What a difference a word could make” by Steve Sebelius in the Las Vegas Review-Journal.

Pennsylvania: “Pa. lawmakers left town with plenty of unfinished business” by Andrew Staub in the Daily Local News.

Redistricting

Florida: “House Democrats Have Mixed Reaction to Florida Redistricting Ruling” by Abby Livingston in Roll Call.

The Ethics Commission has voted to prevent independent committees from using material produced by candidates in committee advertisements.

The amendment to the Election Campaign Control Ordinance (ECCO) will classify a committee’s otherwise independent payment as a “contribution” if the payment is for an advertisement duplicating materials found in a candidate’s advertisement or on the candidate’s website. Such payments would be subject to both contribution limits and source prohibitions.

The amendment now must be considered by City Council. Approval is not expected before September, 2014.

Photo of the San Diego skyline courtesy of Tomcio77 on Wikimedia Commons.

National:

Eschewing Lobbyists, States Advocate for Themselves

USA Today – Elaine Povich (Pew Center on the States) | Published: 7/10/2014

The 2011 ban on earmarks – the inclusion of money for specific local projects in broader bills – has prompted a shift away from states paying Washington, D.C.-based lobbyists to advocate for them. Now, more state lawmakers and other officials are combining forces to advocate for themselves. K Street lobbyists were specialists in getting earmarks because of their personal connections to federal lawmakers. The state coalitions are making broader arguments for funds that benefit more than one individual project.

Federal:

Sen. Robert Menendez Seeks Probe of Alleged Cuban Plot to Smear Him

Washington Post – Carol Leonnig and Manuel Roig-Franzia | Published: 7/7/2014

With a public corruption investigation hanging over him, U.S. Sen. Robert Menendez suggested Cuban spies had planted the seeds of that inquiry as a way to discredit him and mute his strident opposition to the government in Havana. His comments followed media stories that said a 2013 CIA report had cited credible evidence linking Cuban agents to a campaign to smear Menendez. The FBI is investigating whether Menendez received free airplane rides and other perks from a wealthy donor and repaid him with political favors. Even if Menendez’s Cuba theory is correct, it is unlikely to derail the probe.

From the States and Municipalities:

California – Support Wanes in Sacramento for Tough Ethics Reform following Scandal

San Jose Mercury News – Jessica Califati | Published: 7/5/2014

Since voting to suspend Leland Yee and two other state senators indicted in recent months, California lawmakers have held a “day of reflection” and considered more than a dozen new pieces of ethics reform legislation. But while support for bills requiring more disclosure of gifts and contributions remains strong, interest in tougher proposals that would restrict politicians’ fundraising and access to free trips has waned significantly in the last few months. “You can’t be against an ethics bill the day after the scandal, but it’s no longer the day after the scandal,” said Jessica Levinson, a professor who specializes in campaign finance law.

Florida – Miami Lakes’ Muzzled Mayor Misses ‘My People’ as Trial Is Set to Begin

Miami Herald – Jay Weaver | Published: 7/7/2014

Michael Pizzi, the suspended mayor of Miami Lakes, is facing a trial in federal court on corruption charges. He is charged with conspiracy and extortion offenses for allegedly accepting $6,750 in mostly cash bribes during an FBI sting operation. Pizzi, a Brooklyn native, sees himself as the character Carmine Polito in the Oscar-nominated movie American Hustle – an over-the-top tale of the FBI’s undercover takedown of a fictional blue-collar New Jersey mayor who lived for his constituents.

Florida – Sternad, Saying He Was Duped, Gets 7 Months

Miami Herald – Jay Weaver | Published: 7/10/2014

A judge sentenced a failed South Florida congressional candidate to seven months in prison for campaign finance violations in a case linked to former U.S. Rep. David Rivera. Justin Sternad pleaded guilty last year to campaign finance violations, including accepting illegal contributions and filing false reports. The case involves allegations that Rivera, a Republican, secretly financed Sternad’s campaign to weaken Democratic rival Joe Garcia. Rivera has repeatedly denied any wrongdoing, although close Rivera associate Ana Alliegro is also charged in the case. Rivera is again running for the House seat against Garcia after losing to him in 2012.

Hawaii – Ethics Commission Investigates Golf Perks

Hawaii News Now – Rick Daysog | Published: 7/9/2014

The Hawaii Ethics Commission is winding down its year-old investigation targeting number of employees at the University of Hawaii (UH) and the Department of Transportation (DOT) for receiving thousands of dollars in free golf outings provided by government contractors. Recent filings with the commission by DOT and UH employees indicates just how widespread the practice is. “For a lot of these firms, it’s simply the cost of doing business and this has got to stop because it makes people trust their government less,” said UH political science professor Colin Moore.

Iowa – Koch Brothers Group Targets Iowa Politics

USA Today – Jennifer Jacobs (Des Moines Register) | Published: 7/6/2014

Americans for Prosperity, the conservative political advocacy organization backed by Charles and David Koch, is building an operation in Iowa –– the site of the first presidential primary – that is intended to sway voting in the state for years to come. Using methodical canvassing, Americans for Prosperity-Iowa seeks to identify voters who are sympathetic to its message. Its database is to include an individual’s political orientation, likelihood to vote, and serve as a roster of probable swing voters.

Louisiana – C. Ray Nagin, Former New Orleans Mayor, Sentenced to 10 Years in Prison

Los Angeles Times – David Zucchino | Published: 7/9/2014

Former New Orleans Mayor Ray Nagin was sentenced to 10 years in federal prison for his participation in a $500,000 bribery scheme that operated during most of his time in office. Many of the kickbacks took place after Hurricane Katrina, when contractors crowded into the city for rebuilding work. The sentence was less than the recommended 15 years, but U.S. District Court Judge Ginger Berrigan said the evidence failed to show Nagin had organized or had been a leader of a conspiracy. Prosecutors objected to the sentence, a move that could set up an appeal.

Maine – Cutler Supporters’ Lawsuit Challenges Constitutionality of Maine Donation Limits

The Sun Journal – Christopher Cousins (Bangor Daily News) | Published: 7/8/2014

Four supporters of independent gubernatorial candidate Eliot Cutler filed a lawsuit against Maine’s ethics commission for not being allowed to contribute as much to Cutler as they could to a party candidate. State law allows party candidates to accept $1,500 donations from individuals for both the June primary and the general election, even if those candidates do not face primary challengers. As an independent, Cutler can collect no more than $1,500 per donor. The lawsuit says that law should be struck down as unconstitutional.

Massachusetts – Robert DeLeo in Glare at Probation Hiring Trial

Boston Globe – Milton Valencia and Michael Levenson | Published: 7/10/2014

Massachusetts House Speaker Robert DeLeo strongly denied assertions by prosecutors at the federal trial of the state’s former probation department commissioner that DeLeo traded jobs for votes or deliberately spared the agency from budget cuts. Prosecutors said in a court filing that such an arrangement had existed between DeLeo and former probation commissioner John O’Brien, who is being tried along with two deputies for allegedly rigging the agency’s hiring process to favor applicants referred by powerful lawmakers, in exchange for favorable legislative action on the budget or other matters.

Missouri – Ex-Missouri House Speaker’s Campaign Fund Still Yielding Benefits Two Years Later

St. Louis Post-Dispatch – Kevin McDermott | Published: 7/6/2014

It is not unusual for former Missouri lawmakers to jump immediately into lobbying their former colleagues with no waiting period. What is unusual is for ex-legislators to keep their campaign funds open and use it in ways that appear to promote their lobbying activities, such as with former House Speaker Steve Tilley. A St. Louis Post-Dispatch review found no other current lawmaker-turned-lobbyist operating under circumstances like the ones surrounding Tilley. That makes some reformers wonder if he is setting a dangerous new precedent that others might follow.

Ohio – Cleveland to Host 2016 GOP Convention

Politico – Katie Glueck and Maggie Haberman | Published: 7/8/2014

In choosing Cleveland as the site of the 2016 Republican National Convention, party organizers opted for a Democratic enclave in the pivotal battleground state of Ohio over the wealthier and more conservative Dallas area. The announcement is a coup for Cleveland as it seeks to update its image from an economically struggling Rust Belt city to a thriving metropolis with a revitalized downtown. The decision to go with Ohio was anticipated by many Republican operatives and donors. “We’re going where the swing voters are,” said GOP strategist Mike Murphy.

Pennsylvania – Interest Groups’ Lobbying Tally Tops $500M in Pennsylvania

Pittsburgh Tribune-Review – Melissa Daniels | Published: 7/4/2014

In 2013, lobbyists spent $518 million on costs related to influencing Pennsylvania lawmakers. It is the first time the spending exceeded the $500 million mark. Gabrielle Sedor, president of the Pennsylvania Association for Government Relations, said the increase in spending is likely is because of rising costs overall, such as salaries and travel costs. She said lobbyists try to provide expertise and research about industry trends, and to keep tabs on statehouse activity. “To be a lobbyist and have a good relationship, you have to be honest and ethical and be a source of information, a reliable resource above anything else,” said Sedor.

Rhode Island – R.I. Lobbyist Rickman Discloses He Loaned $10,000 in 2009 to Ex-House Leader Fox

Providence Journal – Katherine Gregg | Published: 7/8/2014

A lobbyist who failed to disclose he loaned money to former Rhode Island House Speaker Gordon Fox has now said the loan was for $10,000. Ray Rickman and Fox had both neglected to report the loan from August 2009 in required filings. State Ethics Commission attorney Jason Gramitt said nothing in the law bans a lobbyist from giving a public official a loan, but the loan would create a ‘business relationship” which in all cases, except those involving legislators, would create a clear conflict-of-interest if that official took any action that financially benefited that business associate.

South Carolina – SC Supreme Court: Harrell probe can continue

The State – Jamie Self | Published: 7/9/2014

The South Carolina Supreme Court ruled the state’s top prosecutor has the authority to investigate House Speaker Bobby Harrell over allegations the lawmaker abused his power for personal benefit. The justices said Attorney General Alan Wilson is fully empowered to probe wrongdoing wherever it may occur, and his powers are not blunted because the investigation involves a lawmaker’s ethical conduct. The ruling overturned a lower court’s decision to halt Wilson’s investigation.

State and Federal Communications produces a weekly summary of national news, offering more than 80 articles per week focused on ethics, lobbying, and campaign finance.

News You Can Use is a news service provided at no charge only to clients of our online Executive Source Guides, or ALERTS™ consulting clients.

Lobbying

“Under Contract” in The Hill.

“13 K Streeters cross the street” by Byron Tau in Politico.

“Bitcoin gaining currency on K Street” by Megan R. Wilson in The Hill.

Louisiana: “Louisiana business association reviews legislative session: Four things you need to know” by Julia O’Donoghue in The Times-Picayune.

Campaign Finance

“Lawrence Lessig on His Super PAC to End Super PACs” by Denver Nicks in TIME.

“Chamber of Commerce Spends $780K for Kingston” by Kent Cooper in Roll Call.

North Carolina: “Political action committees have big impact on campaigns” by Susan Ladd in the News & Record.

Ethics

Hawaii: “New Chair Will Steer Hawaii Ethics Commission Through Disclosure Law” by Nathan Eagle in the Honolulu Civil Beat.

Louisiana: “New Orleans Ex-Mayor Ray Nagin Sentenced to 10 Years” by Cameron McWhirter in The Wall Street Journal.

Congress

“Capitol partially closed due to spill” by Mario Trujillo in The Hill.

Government Tech and Social Media

West Virginia: “W. Va. Proceeds With Massive Computer Overhaul, Employees Struggle With the Switchover” in Government Technology.

Lobbying

“Lobbying World” in The Hill.

“Bono’s One Action Ramps Up Lobbying” by Kent Cooper in Roll Call.

Rhode Island: “R.I. lobbyist Rickman discloses he loaned $10,000 in 2009 to ex-House leader Fox” by Katherine Gregg in the Providence Journal.

“Bitcoin Foundation Hires Lobbying Firm” by Ryan Tracy in The Wall Street Journal.

Campaign Finance

Maryland: “Republican Larry Hogan to use public funds in fall campaign for governor of Maryland” by John Wagner in The Washington Post.

Ethics

“Did House Travel Disclosure Rules Change? | A Question of Ethics” by C. Simon Davidson in Politico.

Indiana: “Amid ethics probe, top INDOT official seeks job with firm whose contracts he OK’d” by Tony Cook and Ryan Sabalow in The Indianapolis Star.

Missouri: “It’s back: Streetcar ethics complaint refiled” by Austin Alonzo in the Kansas City Business Journal.

Government Tech and Social Media

“Riverside, Calif., Launches Transparency and Engagement Portal, Rethinks Procurement” by Colin Wood in Government Technology.

A federal lawsuit was filed July 7, 2014, challenging certain provisions of Maine’s campaign finance law. Sections 1015(1) and 1015(2) of Chapter 21-A of the Maine Revised Statutes limit political contributions to a gubernatorial candidate from an individual, political committee, corporation, or business entity to $1,500 in any election. Therefore, a candidate can collect a total of $3,000 from each contributor because there are ordinarily two elections – a primary election and a general election.

The lawsuit, filed by four supporters of gubernatorial candidate Eliot Cutler, alleges this provision of law is unconstitutional on First and Fourteenth Amendment grounds. Cutler is running as an independent and therefore did not participate in the state’s June 10 primary election. As a result, the law only allows contributions of $1,500 per contributor because Cutler will only participate in one election. The suit alleges minor parties, including independent candidates, are at a disadvantage under the existing scheme.

Defendants named in the case include the Maine Ethics Commission, Walter McKee as chairman of the commission, and Secretary of State Matthew Dunlap. The suit seeks a permanent injunction ceasing enforcement of the $1,500 per election limit as applied to independent candidates.

If granted, the injunction would apply to the 2014 election cycle.

Lobbying

“Bottom Line” in The Hill.

“A driving force for truckers” by Keith Laing in The Hill.

“Squire Patton Boggs bolsters presence in Japan” by Megan R. Wilson in The Hill.

“Politico Influence: Squire Patton Boggs announces leadership structure” by Byron Tau in Politico.

“Export-Import Bank supporters aim for show of strength in Senate” by Kevin Cirilli and Vicki Needham in The Hill.

Florida: “Tallahassee’s next lobbying gold rush: cannabis” in The Miami Herald.

New York: “NYPIRG: Casino lobbying, spending hits $11 million” by James M. Odato in the Times Union.

Pennsylvania: “Ethics Commission fines lobbyists for failure to file expense reports” by Megan Henney in the Tribune-Review.

Campaign Finance

Arizona: “AG Horne sues to block Clean Elections investigation” by Yvonne Wingett Sanchez in The Republic.

Vermont: “Court backs Vt. campaign finance rules” by Terri Hallenbeck in the Burlington Free Press.

Ethics

“Without ethics enforcement, it’s open season in Washington” by Melanie Sloan in The Hill.

Colorado: “Colorado ethics panel signals support for Gessler GOP seminar trip” by Joey Bunch in The Denver Post.

Indiana: “State ethics watchdog plans to leave office” by Tony Cook in The Indianapolis Star.

Missouri: “Can a candidate raffle off a hot tub? Run bingo?” by Jonathan Shorman in the Springfield News-Leader.

Congress

“The Roll Call Congressional Baseball Game in 3 Minutes (Video)” by JM Rieger in Roll Call.

Government Tech and Social Media

“Why Facebook’s ‘Voter Megaphone’ Is the Real Manipulation to Worry About” by Micah L. Sifry in TechPresident.

Lobbying

“New Bill Relative To Lobbyists and Candidates” by Kent Cooper in Roll Call.

“Wall Street braces for gavel hand-off” by Megan R. Wilson in The Hill.

“Silicon Valley pins hopes on Obama for immigration win” by Julian Hattem in The Hill.

“Former Lobbyist Jack Abramoff On Congressional Travel Disclosure” in the Daily Beast.

California: “Who pays the most for California government lobbying in Sacramento? Government” by Ben Baeder in the Los Angeles Daily News.

New York: “Binghamton University ranks second among SUNY schools in spending on lobbying” by Steve Reilly in the Press & Sun-Bulletin.

Pennsylvania: “Interest groups’ lobbying tally tops $500M in Pennsylvania” by Melissa Daniels in the Tribune-Review.

Rhode Island: “Schilling summoned to testify on his alleged lobbying for 38 Studios” by Katherine Gregg in the Providence Journal.

Vermont: “Revolving door: Ramos shifts from senate to lobbying job” by Anne Galloway in VTDigger.

Campaign Finance

“FEC Provides Reminder and Resources for Upcoming Deadline” by Kent Cooper in Roll Call.

“Hobby Lobby Ruling Fuels Amendment Push” by Eliza Newlin Carney in Roll Call.

“Law prof’s super PAC reaches fundraising goal; aim is new campaign-finance system” by Debra Cassens Weiss in ABA Journal.

Arizona: “Most AZ legislative candidates decline public funds” by Becky Pallack in the Arizona Daily Star.

California: “Activists for tougher campaign finance laws arrested at Capitol” by Patrick McGreevy in the Los Angeles Times.

Connecticut: “Despite limits, money finds its way to campaigns” by Ken Dixon in Greenwich Time.

Massachusetts: “House quietly approved amendment to help state GOP” by Frank Phillips in The Boston Globe.

New Hampshire: “‘NH Rebellion’ walks for campaign finance overhaul” by The Associated Press in the San Francisco Chronicle.

Ethics

“Ethics Chairman Says Panel Will Reverse Decision on Travel Disclosures” by Matt Fuller in Roll Call.

California: “Support wanes in Sacramento for tough ethics reform following scandal” by Jessica Calefati in the San Jose Mercury News.

Elections

“2014 Senate rankings: Map favors GOP” by James Hohmann in Politico.

State Legislatures

“Where are women winning? In state legislatures.” by Aaron Blake in The Washington Post.

Government Tech and Social Media

Pennsylvania: “Philadelphia Hires New Chief Data Officer” in Government Technology.

National:

As Numbers Grow, Single Women Emerge as Political Powerhouse

New York Times – Jackie Calms | Published: 7/2/2014

Recent elections suggest unmarried women have emerges as a voting bloc that is reshaping the electorate to the Democratic Party’s advantage. In order to prevent Republicans from capturing a U.S. Senate majority in November, Democrats and allied groups are making an aggressive push to woo single women. They seized on the ruling by the Supreme Court’s conservative majority – five men – that family-owned corporations do not have to provide birth control in their insurance coverage, to buttress their arguments that Democrats better represent women’s interests.

How Cozy Can Candidates Be With Political Groups?

The Center for Public Integrity – Rachel Baye | Published: 7/1/2014

Laws vary widely when it comes to how close candidates can be with political backers – what is allowed in one state may be illegal in another. In Florida and Michigan, for example, candidates and supposedly independent groups seemingly work hand in hand, while Connecticut and Minnesota recently affirmed such groups must keep their distance. Meanwhile, federal office seekers operate under an entirely different set of rules on coordination that even regulators cannot agree on.

Terre Haute’s Jim Bopp Jr. a Conservative Titan

Raleigh News & Observer – Mark Bennett (Terre Haute Tribune Star) | Published: 6/29/2014

Attorney Jim Bopp has won nine of 13 cases at the U.S. Supreme Court. He initiated the Citizens United case, which overturned restrictions on spending by corporations and labor unions to support or defeat candidates. Bopp has crisscrossed the nation for more than 30 years, working on more than 150 cases in state and federal courts, knocking down laws he believes inhibit the expression of free speech in campaigns. “In the often arcane world of campaign finance law, he’s a veritable rock star,” said Dave Levinthal, who investigates the influence of money in politics for the Center for Public Integrity.

Federal:

Congress Quietly Deletes a Key Disclosure of Free Trips Lawmakers Take

National Journal – Shane Goldmacher | Published: 6/30/2014

U.S. House members are longer required to list on their annual financial disclosure reports some privately sponsored trips they take. The change was not publicly announced but was described in an instruction book available to members of Congress on how to fill out the forms. Legislators will still have to provide details about their travel on the House clerk’s website, which is less commonly monitored by reporters, watchdog groups, and others than the financial disclosure reports.

LobbyIt: Aiming to be everyman’s lobbyist

Washingtoon Post – Catherine Ho | Published: 6/30/2014

Four years ago, Paul Kanitra opened LobbyIt, a firm in Washington whose business model was nicknamed by some as “McLobbying.” The firm represents mostly small businesses and little-know associations. LobbyIt does not use retainers – which on K Street is typically $15,000 per month. Instead, it uses set pricing levels of $995, $1,995, $2,995, or $4,999 a month. Kanitra describes the firm’s target audience not as the in-house government affairs manager at a Fortune 500 company, but as “the executive director of a small association in Idaho who hasn’t been in D.C. since their eighth-grade class trip.”

From the States and Municipalities:

California – Complaints of Nepotism Dog California Senate

Sacramento Bee – Laurel Rosenhall | Published: 6/29/2014

Concerns about personnel practices and allegations of nepotism are swirling in Sacramento as an investigation proceeds into claims that friends and family of key administrators get special access to taxpayer-funded jobs. Hiring family members is not forbidden in the California General Assembly, and the Legislature is not subject to the same rules that govern hiring in other parts of state government.

Connecticut – Diageo, Pfizer Pay to Settle 2012 DNC Ethics Violation

Connecticut Mirror – Mark Pazniokas | Published: 6/30/2014

Diageo North America and Pfizer agreed to each pay a $5,000 penalty to the Connecticut Office of State Ethics for failing to report spending on receptions each company held during the 2012 Democratic National Convention. Multiple Connecticut state employees, public officials, and/or members of a public official’s family or staff attended each event. Neither Diageo nor Pfizer, both registered as principals in Connecticut, reported the expenses on their lobbyist financial reports.

Kentucky – Legislative Caucuses Rely on PACs, Reports Show

Louisville Courier-Journal – Tom Loftus | Published: 6/30/2014

Each of the General Assembly’s four political caucuses reported their contributions and expenses over the past 18 months to the Kentucky Registry of Election Finance recently. A review of those reports show how heavily dependent the caucuses are on the special interests that lobby lawmakers. Of the nearly $1,036,000 raised by the caucuses over the period, about $394,000 – roughly 38 percent – was contributed by PACs affiliated with corporations and trade associations.

Missouri – Freebies Flow at Missouri Capitol; Pols Accept More than $600K from Lobbyists

St. Louis Post-Dispatch – Walter Moskop | Published: 7/2/2014

Lobbyists in Missouri spent $680,000 on gifts for public officials during the 2014 legislative session, with nearly all of it going to state lawmakers. It is not clear which lawmakers were the recipients of the vast majority of lobbyist spending. More than $500,000 in gifts went to legislative committees or the entire General Assembly, mostly in the form of receptions and meals. By listing a committee or legislative body as the recipient of the gift, lobbyists do not have to provide names of specific lawmakers.

New York – G.O.P. Power Broker in Albany Is Charged With Lying to F.B.I.

New York Times – Thomas Kaplan and William Rashbaum | Published: 7/1/2014

New York Sen. Thomas Libous is facing charges he lied to the FBI about using his elected position to arrange a law firm job and an inflated salary for his son. An indictment alleges Libous claimed he did not know how his son, Matthew, got the job. It also says Sen. Libous told the FBI he was unaware a lobbying firm was paying part of his son’s salary. It has been previously alleged that Thomas Libous arranged his son’s job and salary in exchange for steering business to the law firm.

Ohio – Ben Suarez Acquitted On All Charges except One – Witness-Tampering/Obstruction of Justice for Letter to SCI Controller

Cleveland Plain Dealer – James McCarty | Published: 6/30/2014

Businessperson Benjamin Suarez was found not guilty of illegally funneling $200,000 to the campaigns of U.S. Rep. Jim Renacci and Ohio Treasurer Josh Mandel. The jury found him guilty of one felony count for tampering with a witness. Prosecutors said Suarez’s family members, employees, and their spouses contributed money to the re-election campaign of Renacci and Mandel’s failed U.S. Senate bid. The donors were then reimbursed with company money. The contributions coincided with acts Mandel and Renacci took on behalf of Suarez’s company, which was facing a lawsuit in California. Defense lawyers maintained Suarez did not willfully break the law.

Rhode Island – Fox Had Loan from Registered Lobbyist for Years

WPRI – Michelle Smith (Associated Press) | Published: 6/27/2014

Documents show former Rhode Island House Speaker Gordon Fox had a personal loan from a registered lobbyist for several years. State Ethics Commission filings show the loan of an undisclosed amount over $1,000 was from lobbyist Ray Rickman. Jason Gramitt, an attorney for the Ethics Commission, said state law does not prohibit a lawmaker from taking a loan from a lobbyist, but it does create a business association. Fox’s activities have been under scrutiny since March, when the FBI, IRS, and other authorities raided his statehouse office and home. He resigned his leadership position the next day.

Vermont – Court: Super PAC not independent enough

Politico – Byron Tau | Published: 7/2/2014

A three-judge panel of the U.S. Court of Appeals for the Second Circuit ruled a state-level super PAC in Vermont was not “functionally distinct” enough from a sister committee that gives money to candidates and political parties. As a result, the judges found the supposedly separate group might not have been acting independently and can be subject to Vermont’s contribution limits. Campaign finance reformers say the court has taken an important step in actually examining claims about whether an organization is independent, rather than accepting the group’s word on the matter.

Wisconsin – No Conclusion in Inquiry into Scott Walker’s Campaign Fundraising

New York Times – Monica Davey | Published: 6/26/2014

A prosecutor cautioned he has not made a final determination about whether Wisconsin Gov. Scott Walker and his campaign illegally coordinated fundraising among conservative groups during recall elections in 2011 and 2012. An attorney representing special prosecutor Francis Schmitz warned the media and public against jumping to conclusions of guilt based on documents within a once-secret John Doe probe that emerged in a federal lawsuit.

State and Federal Communications produces a weekly summary of national news, offering more than 80 articles per week focused on ethics, lobbying, and campaign finance.

News You Can Use is a news service provided at no charge only to clients of our online Executive Source Guides, or ALERTS™ consulting clients.

Lobbying

“Lobbying World” in The Hill.

“Clark Hill adds two in public affairs” by Byron Tau in Politico.

“#Modernlobbying: Why bankers are tweeting for regulatory relief” by Mark Holan in Washington Business Journals.

Virginia: “Taxicab industry has history of lobbying, donations” by Kathryn Watson on Watchdog.org.

Campaign Finance

“Shedding New Light on Dark Money” by Timothy Karr on The Huffington Post.

“Campaign finance laws vary widely from state to state, report says” by Patrick Marley in the Journal Sentinel.

“How Cozy Can Candidates Be With Political Groups? It All Depends” by Rachel Baye (Center for Public Integrity) on NBC News.

Massachusetts: “Gubernatorial candidates back campaign disclosure bill” by Jim O’Sullivan in The Boston Globe.

Montana: “Super PAC spending $1.7M in Montana Senate race” by The Associated Press in the Billings Gazette.

Wisconsin: “Wisconsin among several states with dust-ups over campaign coordination with outside groups” by Bill Leuders in WisconsinWatch.org.

Ethics

“Congress Quietly Deletes a Key Disclosure of Free Trips Lawmakers Take” by Shane Goldmacher in National Journal.

“Pelosi to Ethics panel: Require lawmakers to report free trips” by Mike Lillis in The Hill.

Missouri: “Streetcar ethics complaint goes away — for now” by Austin Alonzo in the Kansas City Business Journal.

New York: “New York State Senator Indicted” by Erica Orden and Sean Gardner in The Wall Street Journal.

West Virginia: “Tomblin names members of new Ethics Commission” by Phil Kabler in the Charleston Gazette.

Government Tech and Social Media

“Governments Struggling to Get Social Media Right” by Jonathan Walters in Governing.

“DigitalGov rolls out 3 new social media toolkits in quest for ‘social government’” by Greg Otto in FedScoop.

“The Looming Crisis in Voting Technology” by J.B. Wogan in Governing.

Lobbying

“LobbyIt: Aiming to be everyman’s lobbyist” by Catherine Ho in The Washington Post.

“The Influence Industry: Ex-Im Bank renewal, a familiar issue on K Street, divides GOP” by Holly Yeager in The Washington Post.

Rhode Island: “Ex-RI House speaker Fox’s personal loan from registered lobbyist still unpaid” by W. Ray Malinowski in the Providence Journal.

Campaign Finance

Indiana: “Terre Haute’s Jim Bopp Jr. a conservative titan” by Mark Bennett in the Sacramento Bee.

Ohio: “GOP donor found not guilty on campaign finance charges, guilty of obstruction” by Joe Vardon in the Columbus Dispatch.

Ethics

California: “SF open government and ethics oversight broken, report says” by Jonah Owen Lamb in The Examiner.

Illinois: “Closer Look: Ill. legislative watchdog steps down” by The Associated Press in The Washington Examiner.

Kentucky: “Legislative caucuses rely on PACs, reports show” by Tom Loftus in The Courier Journal.

New York: “Three months after Gov. Cuomo pulled plug on Moreland Commission, executive director still being paid” by Ken Lovett in the NY Daily News.

North Carolina: “Former FBI agent Chuck Stuber opens up about corruption cases against NC politicians” by J. Andrew Curliss in the News & Observer.

Wisconsin: “No Conclusion in Inquiry Into Scott Walker’s Campaign Fund-Raising” by Monica Davey in The New York Times.

National Conventions

Ohio: “Cleveland should learn fate of Republican National Convention bid no later than early August” by Henry J. Gomez in the Plain Dealer.

Government Tech and Social Media

“Mistaken Identity: People Angry at Supreme Court Decision Vent at Blog” by Chris Taylor on Mashable.

California: “California governor signs bill to bring bitcoin and other currency into fold” in Reuters.

Lobbying

Florida: “Florida lobbyists to hold annual industry summit Sept. 3-5 in Tampa” in Saint Peters Blog.

Minnesota: “Capitol Chatter: Greater Minnesota cities’ group leads in lobbying costs” by Don Davis in the Morris Sun Tribune.

Rhode Island: “State postpones hearing into possible lobbying violations against lawyer” on WJAR NBC News.

Campaign Finance

“Candidates Rush to Collect Funds by June 30th Deadline” by Kent Cooper in Roll Call.

California: “FPPC hands down fines for area campaign finance violations” in Los Angeles Wave News.

California: “Oakland tries to close campaign finance loophole” by Matthew Artz in the Contra Costa Times.

Delaware: “Campaign-finance bills go to governor” by Jon Offredo in The News Journal.

Maryland: “Does increased campaign spending sway odds of winning?” by Phil Davis on DelmarvaNow.com.

Massachusetts: “Super PAC aims to end all other super PACs” by Akilah Johnson in The Boston Globe.

Ohio: “Jury deliberations to begin in Ben Suarez campaign finance case” by Phil Trexler in the Akron Beacon Journal.

Wyoming: “Wyoming group sues over campaign finance laws” on KGWN CBS News.

Ethics

“Rangel wrangled in potential ethics probe?” by Tim Devaney in The Hill.

Arizona: “Horne hires political backers to investigate his office” by Howard Fischer in the Arizona Daily Star.

Arkansas: “Arkansas judge fined in campaign-gifts case” by The Associated Press in The Washington Times.

California: “O.C. Grand Jury again calls for ethics commission” by Adolfo Flores in the Daily Pilot.

Florida: “Ex-partner of Ponzi schemer gets 2 ½ years” by The Associated Press in the Connecticut Post.

Virginia: “Changing laws in Virginia take effect Tuesday” by Bill Sizemore in The Virginian-Pilot.

Government Tech and Social Media

Oregon: “Oregon website breach: State officials failed to patch ‘high risk’ software problem” by Yuxing Zheng in The Oregonian.

Texas: “City Responds to Negative Tweets with Humor” by Kristi Dalton on Government Technology.

National:

Wisconsin Governor Scandal Shows States as New Front in Fight for Dark Money Disclosure

Sunlight Foundation – Stan Oklobdzija | Published: 6/25/2014

As prospects for any regulations at the federal level seem murky at best, it appears the fight against clandestine political donors may be leaving Washington, D.C. and entering statehouses around the country. The Sunlight Foundation reported that at least 18 bills introduced during the most recent legislative sessions in various states would impose new disclosure rules or amend existing regulations regarding independent expenditures.

Federal:

Thousands of Missing Emails at IRS: What’s it all about?

Los Angeles Times – Joseph Tanfani | Published: 6/24/2014

IRS Commissioner John Koskinen disclosed that emails sent by Lois Lerner, the former director of the agency’s division that oversaw tax-exempt groups, were lost when her computer hard drive crashed in 2011. Koskinen told Congress that eight other hard drives from potential recipients had crashed as well. Republicans have seized on the missing emails, alleging in hearings that their disappearance is evidence of a cover-up by the IRS over a scheme to target conservative nonprofits seeking tax exempt status.

Venture Capital Firm Settles S.E.C. Charges over ‘Pay-to-Play’

New York Times – William Alden | Published: 6/20/2014

TL Ventures agreed to pay almost $300,000 to settle charges it violated the Securities and Exchange Commission’s “pay-to-play” rules. The SEC prohibits investment firms from providing paid services to a government client for two years after a contribution by the firm or an employee to candidates or officials who could influence the management of public assets. The agency said TL Ventures continued to receive advisory fees from the city and state pension funds immediately following campaign donations made by an associate in 2011 to the Pennsylvania governor and a candidate for mayor of Philadelphia.

From the States and Municipalities:

Florida – Unknown Candidate for Governor with Questionable Donations Asks State for Public Campaign Money

Naples Daily News – Matt Dixon | Published: 6/20/2014

Obscure Florida gubernatorial candidate Yinka Adeshina has received 12 campaign contributions worth $3,000 from an address listed as 400 West Park in Tallahassee. But that address would fall in the middle of Tallahassee’s Old City Cemetery. Another six contributions worth $1,500 came from donors who share an address with a Best Buy. Adeshina lists a total of $182,080 in donations, which would make her eligible to receive nearly $100,000 in public funds for her campaign.

Georgia – Changes Ahead for Ga. Ethics Commission

Macon Telegraph – Christina Cassidy (Associated Press) | Published: 6/21/2014

The Georgia ethics commission has been mired in staffing issues, lawsuits, and allegations of outside influence. Now that the commission has opted to avoid what could have been a lengthy court battle and settle with three former employees, a key question is whether the agency will finally begin to make progress on more than 100 cases that have remained opened for months and sometimes years. The commission hopes to jumpstart the process of resolving cases by hiring up to two staff attorneys in the next month or two.

Hawaii – An Inside Look at the Hawaii Super PAC That Helped Defeat Cayetano

Honolulu Civil Beat – Nick Grube | Published: 6/19/2014

PRP, an advocacy group for the Hawaii Carpenters Union and contractors, spent more than $3 million in 2012 to dismantle Ben Cayetano’s Honolulu mayoral campaign and keep the city’s $5.26 billion rail project on track. Emails obtained as part of Cayetano’s defamation lawsuit against the group provide an unprecedented glimpse of the behind-the-scenes operations of one of Hawaii’s most powerful independent expenditure committees. Such groups are allowed to receive and spend unlimited amounts of money on political campaigns.

Illinois – Event Honoring Quinn Raises ‘Pay to Play’ Issues

Washington Times – Carla Johnson (Associated Press) | Published: 6/20/2014

The Roosevelt Group, a lobbying firm with close ties to a key subcontractor hired to promote the nation’s health care law in Illinois, hosted a fundraiser for the Democratic Governors Association (DGA) “honoring Pat Quinn,” according to an invitation that lists suggested sponsorship levels of between $2,500 and $20,000. The DGA formed a PAC last fall to support Quinn’s re-election as governor. Critics said the event raises questions about “pay-to-play” in the state’s highly competitive governor’s race.

Indiana – IEDC Contractor Steers Indiana Investment Funds to Firms Run by Its Chairman and His Son

Indianapolis Star – Alex Campbell | Published: 6/19/2014

In 2011, Indiana hired the private nonprofit Elevate Ventures to choose startup companies to receive taxpayer dollars. An Indianapolis Star investigation has uncovered possible conflicts-of-interest in the arrangement, which has triggered a federal probe. The newspaper discovered a company run by Elevate founder Howard Bates received $500,000 in state money from an Elevate-run fund. Elevate was authorized to distribute the money to the companies connected to Bates without state approval, despite the fact it was public money.

Massachusetts – House Supports Super PAC Disclosure Bill, Boosts Donation Limits

MassLive.com – Colleen Quinn (State House News Service) | Published: 6/25/2014

The Massachusetts House passed legislation that would require corporations, labor unions, and other entities to disclose expenditures in statewide, county, or local races, as well as the sources of their funding, within seven days. The top five donors to an independent expenditure group would also have to be listed in the organization’s television or newspaper advertisement. House Bill 4226 raises the individual limits on annual campaign contributions for any one candidate from $500 to $1,000.

Mississippi – How Cochran Bounced Back from Disaster

Politico – Alexander Burns | Published: 6/25/2014

Following Mississippi’s June 3 Republican primary, U.S. Sen. Thad Cochran’s staff members were crestfallen at the results of an election that deprived the incumbent of an electoral majority. With Cochran forced into a run-off against an aggressive and energetic challenger, a dark mood shadowed his backers in Washington and Mississippi. Yet almost immediately, the Cochran coalition began bouncing back. One aide paraphrased Cochran adviser Stuart Stevens’ primary-night message: “We’re going to figure this out and it’s going to be something you remember for the rest of your life.”

Nebraska – Lobbying Report Shows Millions Spent to Influence State Senators

Lincoln Journal Star – JoAnne Young | Published: 6/20/2014

A report by Nebraska Common Cause said special interests spend nearly $14 million a year to influence state lawmakers. But the watchdog maintains it is difficult to measure the full impact of lobbying money on the Legislature. Senators must report only gifts valued over $100. The companies and organizations that hire lobbyists only report total expenditures; food and beverages are exempt. And golf outings, luncheons, holiday gifts, birthday gifts, wedding presents, and tickets to events are difficult to track to specific senators, said the report.

South Carolina – SC Ethics Reform Bill Dies

The State – Andrew Shain | Published: 6/19/2014

South Carolina’s legislative session ended without the Senate voting on an ethics reform measure that Republicans who took the podium to run out the clock denounced as too watered down. The bill’s key components required officeholders to disclose all of their income sources, though not the amounts, and required third-party groups raising money to defeat or elect candidates to disclose their donors and expenses. An ethics bill can be reintroduced in January when a new session begins.

Virginia – Va. Officials Skeptical of U.S. Interest in Phillip Puckett’s Resignation from State Senate

Washington Post – Laura Vozzella, Matt Zapotosky, and Jenna Portnoy | Published: 6/19/2014

Federal investigators have interviewed officials and sought documents in connection with the resignation of then-state Sen. Philip Puckett, which handed Republicans control of the Virginia Senate at a critical time and was connected to job prospects for him and his daughter. Puckett said there was no quid pro quo but withdrew his name from consideration for a top job with the state tobacco commission. But even some of Puckett’s most prominent critics expressed mixed feelings about a federal inquiry into a matter that many considered unseemly but not criminal.

Wisconsin – Conservative Group Targets State’s Political Committee Donation Limits

Wisconsin State Journal – Matthew DeFour | Published: 6/24/2014

A federal lawsuit has been filed challenging a Wisconsin law that limits the aggregate amount of money candidates can collect from PACs. The Wisconsin Institute for Law and Liberty (WILL) filed the lawsuit on behalf of the political arm of conservative group CRG Network. CRG argues its First Amendment rights to free speech and free association have been denied because of the limits. The institute’s legal team previously won a case challenging the cap on aggregate donations by individuals.

Wisconsin – Scott Walker Case Shows Growing Closeness between Politicians and Wealthy Allies

Washington Post – Matea Gold and Tom Hamburger | Published: 6/23/2014

The investigation of Wisconsin Gov. Scott Walker and his allies over alleged illegal coordination has been challenged as unconstitutional, and it is unclear if it will proceed. Still, the inquiry is being watched closely by campaign strategists and legal experts as a major test of what practices cross the line in the loosely governed and increasingly murky area of big-money politics. The growing influence of super PACs and politically active nonprofits, which can raise unlimited funds, has eroded the once-thick wall between official campaigns and outside interest groups.

State and Federal Communications produces a weekly summary of national news, offering more than 80 articles per week focused on ethics, lobbying, and campaign finance.

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Lobbying

“Lobbying World” in The Hill.

“Under Contract” in The Hill.

Campaign Finance

“Karl Rove and the Modern Money Machine” by Kenneth Vogel in Politico.

Louisiana: “Gov. Jindal signs campaign finance reforms into law” by Tom Wright on WVUE Fox News.

Massachusetts: “House supports super PAC disclosure bill, boosts donation limits” by Colleen Quinn on MassLive.com.

Ohio: “Prosecutor: Ohio man knew donations were illegal” by The Associated Press on WSYX ABC News.

Ethics

“Ethics panel defers Michael Grimm probe” by John Bresnahan in Politico.

Alabama: “Ethics Commission to search for new leader; AL senator expresses interest” by Max Reiss on WSFA News.

Georgia: “Former State Ethics Commission Secretary: The System Is Broken” by Ellen Reinhardt on Georgia Public Broadcasting.

Congress

“With 28 Days Left, What Can Congress Do?” by Molly O’Toole in Defense One.

National Conventions

“Cleveland, Dallas make cut for GOP convention” by James Hohmann in Politico.

Government Tech and Social Media

“Jason Chaffetz: Tech’s pace ‘scares a lot of members of Congress’” by Alex Byers and Jody Serrano in Politico.

Montana: “State notifies 1.3 million people whose data were in hacked computer” by Mike Dennison in the Independent Record.