For the first time, the U.S. Securities and Exchange Commission (SEC) has charged a firm with violations of its pay-to-play rules. On June 20, the SEC charged TL Ventures Inc., a private equity firm, with receiving advisory fees from the pension funds of both Philadelphia and Pennsylvania after an associate of the firm had made campaign contributions in 2011 to the governor and a candidate for mayor.

Federal regulations prohibit investment advisers and their covered associates who make contributions to officials of state and local government entities from providing compensatory advisory services for two years following a campaign contribution. TL Ventures Inc. has agreed to settle the charges by paying nearly $300,000.

The Fair Elections Act to amend the Canada Elections Act has passed and received Royal Assent on June 19, 2014. Bill C-23 increases contribution limits to candidates and political parties from $1,200 to $1,500.

Third-party advertising limits, currently imposed only during a campaign period, will be imposed for all election advertising “in relation to a general election.”

The bill also increases penalties to $100,000 for intentional violations by corporations acting as a third party. The new limits are not effective until the next call for a general election at the federal level.

Two important campaign finance bills have passed the Delaware General Assembly and are on their way to Gov. Jack Markell’s desk.

House Substitute No. 1 to House Bill 302 consolidates the three existing county boards of election into one state board with 11 members. The bill also authorizes the state election commissioner to prepare and publish manuals explaining the state’s campaign finance requirements to individuals, political committees, and others affected by the law.

House Bill 301 requires contributions from joint accounts to be attributed to the person authorizing the payment and establishes procedures for reallocation of contributions from joint accounts.

If the governor signs these bills, House Substitute No. 1 to House BIll 302 becomes effective January 1, 2015, and House Bill 301 becomes effective July 1, 2015.

Lobbying

“From Milwaukee to Milan, Uber’s Battles Are Mostly Local” by Tom Curry in Roll Call.

Texas: “State regulators set for conservative activist’s lobbying trial” by David Saleh Rauf in the Houston Chronicle.

Campaign Finance

“Senate Dems float campaign finance bill” by Byron Tau in Politico.

“Democrats Reintroduce DISCLOSE Act” by Eliza Newlin Carney in Roll Call.

“Kenneth Vogel on Campaign Finance” video on C-SPAN.

“Millionaires Keep Shoveling Money Into Politics” by Kent Cooper in Roll Call.

“California Lawmakers Back Amendment Overturning Citizens United” by Mollie Reilly in The Huffington Post.

North Carolina: “House OKs bill allowing more electronic filings” by The Associated Press in WWAY ABC News.

Wisconsin: “State lawmakers collect most money from outside spenders” by Adam Rodewald in the Green Bay Press Gazette.

Ethics

California: “California Senate panel shelves GOP ethics bill” by Patrick McGreevy in the Los Angeles Times.

Elections

“Live election results: June 24” in The Washington Post.

“Election night: Key House primaries” by Steven Shepard, Elizabeth Titus and Tarini Parti in Politico.

Colorado: “2014 Colorado primary election results” on ABC News Denver.

Maryland: “Brown, Hogan win gubernatorial nominations; Democrat Frosh wins attorney general contest” by John Wagner and Jenna Johnson in The Washington Post.

“2014 Maryland Primary Election results” on WBAL TV News.

Mississippi: “Inside the Thad Cochran comeback” by Alexander Burns in Politico.

New York: “Charles Rangel leads; Adriano Espaillat won’t concede” by A;ex Isenstadt in Politico.

New York: “Tea Party doesn’t sway New York GOP voters in primary” by David Robinson in the Albany Business Review.

Oklahoma: “Tuesday’s Election Results” in Tulsa World.

Government Tech and Social Media

“NCSL Launches Elections Administration Research Database” by Michael D. Hernandez on The NCSL Blog.

Lobbying

“Bottom Line” in The Hill.

“In the trenches of global trade” by Vicki Needham in The Hill.

Minnesota: “Local government lobbying costs increased to $8 million in 2013” by Rachel E. Stassen-Berger in The Star Tribune.

New York: “NY ethics and lobbying commission creates tip line” by The Associated Press in the Utica Observer Dispatch.

Campaign Finance

“A New Era for Pay-to-Play” by Jason Abel on Rick Hasen’s Election Law Blog.

“Scott Walker case shows growing closeness between politicians and wealthy allies” by Matea Gold and Tom Hamburger in The Washington Post.

District of Columbia: “Smith, former Ward 1 D.C. Council candidate, pleads guilty in campaign finance scheme” by Keith Alexander in The Washington Post.

Mississippi: “Outside Spending, Dark Money Pour into Mississippi Runoff” by Ian Vendewalker in the Brennan Center for Justice Blog.

Ethics

Hawaii: “Honolulu Ethics Commission Complains of Affronts to Its Independence” by Sophie Cocke in the Honolulu Civil Beat.

Virginia: “Va. House tosses out Gov. McAuliffe’s vetoes on Medicaid, judges; GOP reorganizes state Senate” by Alan Suderman (Associated Press) in The Republic.

Elections

“6 Things to Watch in Tuesday’s Primaries” by Abby Livingston in Roll Call.

State Legislatures

Arkansas: “Arkansas Legislature: Special Session Discussions Down To Lottery” by John Lyon in the Times Record.

Hawaii: “Hawaii Gov. Neil Abercrombie says he intends to veto 10 bills” by Braelyn Wood in Pacific Business News.

New York: “Winners and Losers in NY State’s 2014 Legislative Session” by The Associated Press in the Epoch Times.

Government Tech and Social Media

“Google+ is Here to Stay, Company Exec Says” in Government Technology.

A federal lawsuit has been filed to challenge the state law limiting campaign contributions to candidates from political action committees (PACs).

The CRG Network (CRG), a PAC working to elect conservative candidates, filed the lawsuit in the Milwaukee U.S. District Court against the state Government Accountability Board. CRG argues its rights to free speech and free association have been denied because of PAC contribution limits.

The Wisconsin Supreme Court upheld the law in 1990, but subsequent U.S. Supreme Court rulings may make the earlier state Supreme Court case irrelevant.

Lobbying

“K Street powerhouse loses founding partner” by Megan R. Wilson in The Hill.

“Is Akin Gump the New King of K Street?” by Marisa M. Kashino in the Washingtonian.

“Lobbyists want spot on Team Scalise” by Megan R. Wilson in The Hill.

“K Street hits the jackpot with casino magnate” by Julian Hattem in The Hill.

Campaign Finance

“Study Examines Role Of Citizens United Ruling On Politics” by Jim Letizia on WCBE.

“National Party Committees Report May Financial Figures” by Kent Cooper in Roll Call.

Alaska: “APOC staff says Anchorage mayor broke campaign finance law, proposes $187.50 fine” by Nathaniel Herz in the Anchorage Daily News.

Oklahoma: “Election Records: ‘Dark-Money,’ Campaign Groups Have Close Connections” by Oklahoma Watch & Clifton Adcock in KGOU.

Ethics

“‘Ms. Ethics’ Carol Dixon Remembered Fondly (Video)” by Colin Diersing in Roll Call.

“Don Young Must Repay $59K for Improper Trips/Gifts” by Kent Cooper in Roll Call.

Florida: “New Miami-Dade task force to target state public corruption” by David Ovalle in the Miami Herald.

Georgia: “Ethics commission to get new member” by Aaron Gould Sheinin in The Atlanta Journal-Constitution.

Virginia: “Virginia governor Terry McAuliffe vetoes funds for ethics commission” by Rachel Weiner in The Washington Post.

Wisconsin: “Report: Scott Walker Accused of Campaign Finance ‘Criminal Scheme’” by Mark Murray in NBC News.

Wisconsin: “Scott Walker and campaign-finance law: Just how dodgy?” in The Economist.

Elections

“Democrats Playing Defense in 2014 State Legislative Races” by Louis Jacobson in Governing.

Oklahoma: “Is Oklahoma Senate headed for a runoff?” by Cameron Joseph in The Hill.

Government Tech and Social Media

“How the White House’s We the People E-Petition Site Became a Virtual Ghost-Town” by Dave Karpf in TechPresident.

“Awareness, Tech Projects are Top Crowdsourced Goals in Government, Study Says” in Government Technology.

EU: “Lobbyists increasingly look online to influence EU policy” in Euractiv.

On June 18, the Kansas Ethics Commission dismissed a complaint accusing a candidate of soliciting contributions from lobbyists through social media, according to the Kansas City Star.

On May 1, while the Legislature was still in session, a Facebook page for former state Sen. Jean Schodorf’s campaign was posted seeking help to raise money for her political campaign for secretary of state. Clay Barker, the state GOP executive director, made a complaint after a lobbyist “liked” the page. State law prohibits candidates from seeking contributions from lobbyists while the Legislature is in session.

Schodorf told the Star the commission informed her they found no probable cause to believe she violated the law and dismissed the complaint.

Prosecutors claim Gov. Scott Walker was involved with a plan to illegally coordinate fundraising with outside conservative groups to help him and several Republican senators survive a 2012 recall election. In court documents recently unsealed, prosecutors detail a criminal scheme by Walker and top aides to circumvent state law by helping plan campaign spending by a dozen outside groups.

No charges have been filed against Walker or any of his staffers. The documents became public as part of an ongoing lawsuit by Wisconsin Club for Growth, a group at the center of the investigation. A federal appeals judge now is considering whether to permanently stop the investigation.

Photo of Gov. Scott Walker courtesy of Gage Skidmore on Wikimedia Commons.

National:

Population Shifts Turning All Politics National

New York Times – Ashley Parker and Jonathan Martin | Published: 6/15/2014

For all the talk about how partisan polarization is overwhelming Washington, there is another overlapping force at play: voters who are not deeply rooted in an area increasingly view politics through a generic national lens. It was newcomers from other parts of the country and even abroad to Virginia and Mississippi, more than any other voters, who most crucially rejected two influential Republican incumbents – House Majority Leader Eric Cantor and U.S. Sen. Thad Cochran – in recent primaries.

Federal:

Justices Say Public Workers Can Testify about Corruption

USA Today – Richard Wolf and Mary Orndorff Troyan | Published: 6/19/2014

The U.S. Supreme Court ruled unanimously that public employees are protected from retaliation when they testify in court about misconduct they observed on the job. Public employees who are called to testify are protected by the First Amendment just as other citizens are, and should not have to between “the obligation to testify truthfully and the desire to avoid retaliation and keep their jobs,” wrote Justice Sonia Sotomayor. The decision clarified previous rulings in which the court has said public employees have free-speech rights when they are acting as citizens, not when they are testifying to what they learned in their jobs or are required to speak about because of their specific duties.

Obama to Sign Order Barring U.S. Contractors from Job Bias Based on Sexual Orientation

Washington Post – Zachary Goldfarb and Juliet Eilperin | Published: 6/17/2014

President Barack Obama plans to sign an executive order barring federal contractors from hiring or firing employees based on their sexual orientation or gender identity. Obama is not expected to sign the order for weeks, as the White House finalizes details, including possible exemptions for religious nonprofit organizations. Administration officials said the president decided to act unilaterally in the absence of momentum for legislation with broader protections.

Soft Money’s Squishy Political Influence

New York Times – Derek Willis | Published: 6/18/2014

A report by Daniel Tokaji and Renata Strause of Ohio State University surveys the state of campaign finance and finds the relationship between candidates and like-minded independent groups is characterized by subtle cooperation, not outright coordination. For campaigns targeted by super PACs and other outside groups, the feeling is often one of helplessness. “It was like a giant poker game and I wasn’t even sitting at the table,” said a Senate campaign manager quoted in the report.

From the States and Municipalities:

Arizona – School Superintendent Huppenthal Acknowledges Anonymous Blog Posts

Arizona Republic – Cathryn Creno | Published: 6/19/2014

Arizona Superintendent of Public Instruction John Huppenthal said he is the author behind several anonymous blog posts that referred to welfare recipients as “lazy pigs” and Planned Parenthood as the cause of abortions among African-Americans. The comments date back to 2011 and were posted on political blogs. Huppenthal said he wrote them under different pseudonyms so he could have a more open dialogue without his position influencing the debate. Some experts say it is an ethical problem when elected officials do not state their opinions publicly.

Georgia – Ga. Settles with 3 Ex-Ethics Commission Employees

Washington Times – Christina Cassidy (Associated Press) | Published: 6/13/2014

The state has settled whistle-blower complaints by three former Georgia ethics commission employees for a total of $1.8 million. The settlements follow a jury verdict that awarded more than $1 million to a fourth employee, former commission Executive Secretary Stacey Kalberman. The state will pay $1 million to the panel’s former deputy, Sherry Streicker, $410,000 to former IT specialist John Hair, and $477,500 to former staff attorney Elisabeth Murray-Obertein.

Illinois – Billionaire Ken Griffin Gives Rauner Record-Breaking $2.5 Million

Chicago Sun-Times – Sandra Guy and Art Golab | Published: 6/13/2014

Billionaire hedge-fund founder Ken Griffin’s $2.5 million donation to the campaign of Republican Bruce Rauner has been termed the largest single donation in an Illinois governor’s race in the post-Watergate era. The limit on individual contributions is usually $5,300 in Illinois. But the law allows those caps to be lifted when contributions or loans from a candidate or candidate’s family surpass $250,000. Rauner gave $500,000 to his own campaign in November.

Massachusetts – Bill Would Increase PAC Disclosure

Boston Globe – Frank Phillips | Published: 6/18/2014

The Massachusetts Legislature is expected to pass a bill this summer that would increase disclosure requirements for super PACs. The bill would also double the amount of money individuals can give to state candidates from $500 to $1,000 a year, the first change to those limits in 20 years. The disclosure crackdown, also aimed at nonprofit advocacy groups that fund television ads, would go into effect immediately. The new individual donation limits would not take effect until next year.

Ohio – Lawmaker Might Face Charges over Gifts

Columbus Dispatch – Randy Ludlow | Published: 6/14/2014

Ohio Rep. Dale Mallory could face criminal charges for failing to disclose that lobbyist John Rabenold treated him to two meals and a Cincinnati Bengals game. Franklin County Prosecutor Ron O’Brien said Rabenold agreed to work with the FBI and Legislative Inspector General Tony Bledsoe in ongoing investigations into lawmakers who did not report gifts or accepted illegal gifts. The Joint Legislative Ethics Committee is expected to review the case and decide whether to make a referral to O’Brien for potential charges.

Ohio – U.S. Supreme Court Will Allow Constitutional Challenge of Ohio Law That Bars Campaign Lies

Cleveland Plain Dealer – Sabrina Eaton | Published: 6/16/2014

The U.S. Supreme Court allowed a challenge to an Ohio law banning lies in political campaigns to move forward. The court ruled two advocacy groups could challenge the state law that makes it a crime to make knowingly or recklessly false statements about political candidates that are intended to help elect or defeat them. Lower courts had dismissed the case, saying the organizations seeking to challenge it had not faced imminent harm sufficient to give them standing to sue. Justice Clarence Thomas, writing for the court, said the groups “have alleged a credible threat of enforcement” of the law and so were not barred from pursuing their challenge to it.

Pennsylvania – Improvements Seen in Phila. Lobbying Web Site

Philadelphia Inquirer – Alisha Green (Sunlight Foundation) | Published: 6/12/2014

The story of Philadelphia’s lobbying website highlights some of the problems that governments face with sharing this crucial data. Providing the information with enough detail and in a format that is easy to analyze and reuse is something few local jurisdictions have been able to accomplish so far. Philadelphia knew what it needed to do to improve lobbying transparency, but finding a way to implement those changes was the problem, according to an analysis by the Sunlight Foundation.

South Carolina – An Ethical Mess in South Carolina

The Center for Public Integrity – Corey Hutchins | Published: 6/17/2014

An ethics scandal involving the House speaker and difficulty in passing reform legislation are raising concerns about South Carolina’s legislatively dominated government structure, the efficacy of self-policing lawmakers, and the integrity of the state’s institutions. South Carolina earned an ‘F’ from the State Integrity Investigation, which graded states on their transparency, accountability, and risk for corruption. But despite calls for substantive reform from media, public interest groups, and the governor, the status quo remains.

Washington – Election Fallout: Judge says AG’s lawsuit against Grocery Manufacturers can move ahead

The Olympian – Brad Shannon | Published: 6/13/2014

A Thurston County judge rejected efforts by the Grocery Manufacturers Association to squelch a lawsuit in which Washington Attorney General Bob Ferguson accuses the trade association of laundering millions of dollars in last fall’s campaign. Ferguson has accused group of setting up a special fund to disguise the source of money spent to defeat Washington’s Initiative 522. But the judge scrap the state’s requirement that political committees collect at least $10 from 10 different registered voters in state before spending in a Washington campaign.

Washington – Legislative Ethics Board Weighs Limit on Free Meals from Lobbyists

The Olympian – Brad Shannon | Published: 6/17/2014

How often is “infrequent” when it comes to state lawmakers accepting free meals from lobbyists? Washington’s Legislative Ethics Board spent nearly two hours recently taking testimony on the issue and then grappling with the answer. So far, the board has considered several proposals, from as few as three meals annually to as many as 52 per year. It is currently taking comment from the public, lobbyists, and lawmakers before settling on a limit.

Wisconsin – Prosecutors Accuse Scott Walker of Running ‘Criminal Scheme’

Wisconsin State Journal – Mary Spicuzza | Published: 6/19/2014

Newly released documents show prosecutors allege Wisconsin Gov. Scott Walker was at the center of a nationwide “criminal scheme” to illegally coordinate with outside conservative groups. Prosecutors say Walker, his chief of staff, and others who worked for him were discussing illegal coordination with a number of national organizations and prominent figures, including Republican strategist Karl Rove, to fend off recalls targeting the governor and GOP state senators in 2011 and 2012.
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Lobbying

“Under Contract” in The Hill.

“MPAA’s Michael O’Leary steps down – Big 12 hires a lobbying firm” by Byron Tau in Politico.

Missouri: “Lobbyists’ gifts to Missouri lawmakers exceed $500,000” by Angela Mueller in the St. Louis Business Journal.

Campaign Finance

“BitPay, CoinVox Team Up to Allow Politicians to Accept Bitcoin” by Eric Calouro in NewsBTC.

Delaware: “Campaign finance reform bills languish in legislature” by Jonathan Starkey in The News Journal.

Massachusetts: “Bill would increase PAC disclosures” by Frank Phillips in the Boston Globe.

New York: “Blame Game After Push to Revamp Campaign Financing Ends” by Mike Vilensky in The Wall Street Journal.

North Carolina: “N.C. election laws ‘stuck in pre-computer age’” by Jim Morrill in the Charlotte Observer.

Vermont: “Advocacy group turns sights to money in politics” by Neal P. Goswami in the Rutland Herald.

Ethics

“Prosecutor asks court: Reinstate DeLay convictions” by Juan A. Lozano (Associated Press) in the Houston Chronicle.

“Grand Jury Probes Capitol Knowledge & Stock Trading” by Kent Cooper in Roll Call.

Hawaii: “Ethics Commission Tells Lawmakers How They Should Spend Allowances” by Nathan Eagle in the Honolulu Civil Beat.

Elections

New York: “This is what happens when a campaign finance scholar runs for governor” by Max Ehrenfreund in The Washington Post.

Wisconsin: “Jon Erpenbach drops appeal in email open records case” in the Journal Sentinel.

State Legislatures

South Carolina: “SC House OKs $12,000 pay raise for lawmakers, overriding Gov. Haley’s veto” by Cassie Cope in The State.

Lobbying

“Lobbying World” in The Hill.

Florida: “Dade Medical College owner charged with improper lobbying” by Mike Vasquez in the Miami Herald.

Mississippi: “Washington Lobbyists Pour Money Into Mississippi Senate Race To Fend Off Tea Party” by Paul Blumenthal in The Huffington Post.

Campaign Finance

“Soft Money’s Squishy Political Influence” by Derek Willis in The New York Times.

“Campaign-Finance Reform Has to Be Cross-Partisan” by Lawrence Lessig in The Atlantic.

Vermont: “Canvassers to target money in politics” by Terri Hallenbeck in the Burlington Free Press.

Ethics

Arizona: “Clean elections director seeks full probe of Arizona AG Tom Horne over election law complaint” by Bob Christie (Associated Press) in The Republic.

Georgia: “Advocates want ethics chief out” by Erica Techo in The Augusta Chronicle.

Government Tech and Social Media

“Democratic Strategist Chris Talbot Explains the Do’s and Don’ts of Digital Campaigns” by Tess VandenDolder in InTheCapitol.

“FBI discovers Twitter-speak, starts a dictionary” by Ian Sherr in C|Net.

Lobbying

“Bottom Line” in The Hill.

Campaign Finance

California: “Senate approves campaign fundraising blackout during budget negotiations and end of session” by The Associated Press in the Daily Journal.

Ethics

“Watchdog urges bribery probe of congressman” by Mario Trujillo in The Hill.

New Mexico: “NM governor’s ex-aide pleads guilty to hacking charges” by Julian Hattem in The Hill.

Ohio: “Ohio Rep. Dale Mallory Named In Ethics Probe” by The Associated Press on WBNS TV News.

Rhode Island: “House panel passes revised ethics bill” by The Associated Press in the San Francisco Chronicle.

Elections

“Supreme Court: Groups Can Sue over Campaign Lies” by Julie Rovner in Governing.

Ohio Reps. Nick Celebrezze and Ronald Gerberry announced plans last week to introduce legislation creating a campaign contribution blackout for the attorney general’s office. New legislation would prohibit contributions to the attorney general and to any party-endorsed candidates for the office while the office is reviewing bids on contract work.

Celebrezze believes a blackout period will help eliminate the appearance of impropriety. Attorney General Mike DeWine, however, claims enforcement of the blackout periods makes the process inherently more political. Moreover, he said contributions have not influenced his decision to award contract work.