On August 21, the Texas Ethics Commission issued two advisory opinions and a proposed rule amendment.

Advisory Opinion 519 holds a state candidate is not prohibited from accepting an in-kind political contribution from an out-of-state political committee. The contribution to a candidate is allowed if made from a permissible source and the candidate properly complies with the applicable disclosure requirements.

In Advisory Opinion 518, the commission upheld that a group is not a political committee if not accepting or intending to accept political contributions and not using or intending to use more than 20 percent of its funds and other resources to make political expenditures.

The Ethics Commission also voted to propose a rule change by defining “principal purpose” in relation to a group making political contributions and expenditures. While a group can have more than one principal purpose, the definition would create a threshold triggering the disclosure of political contributions and expenditures. The commission also proposed other rule changes. The proposed rules are currently open for comment.

Photo of the Texas Capitol Rotunda dome interior by Ed Uthman on Wikimedia Commons.

Lobbying

“Lobbying disclosures leave public in the dark” by Marcelo Rochabrun and Dave Levinthal in The Center for Public Integrity.

“Microsoft Leaves Lobbying Group ALEC Amid Split Over Renewables” by Ari Natter in Bloomberg.

“Wisconsin’s Walker confronted with damaging new details” by Catherine Ho in The Washington Post.

Canada: “Toronto lobbyist Jamie Besner broke the rules, registrar finds” by Paul Moloney in the Toronto Star.

Indiana: “Heuer resigns seat for lobbying post” by Vivian Sade in The Journal Gazette.

Iowa:  “Lobbying by payday lenders” by Lauren Mills in the Des Moines Register.

New York: “Online course rule for lobbyists nears” by Rick Karlin in the Times Union.

Campaign Finance

“Ethics group asks FEC for dark money disclosure” by Nat Stein in the Colorado Independent.

“Bitcoin lobby launches spending PAC” by Julian Hattem in The Hill.

Alaska: “Group wants Alaska U.S. Senate candidates to sign campaign finance pledge” by Casey Grove in the Fairbanks Daily News-Miner.

California: “CalPERS board member likely facing stiffer fine from FPPC” by Dale Kasler in The Sacramento Bee.

Florida: “David Rivera named co-conspirator as friend pleads guilty in campaign-finance case” by Marc Caputo, Jay Weaver and Patricia Mazzei in the Miami Herald.

“U.S. House incumbents rolling in cash” by Jessica Wehrman in the Columbus Dispatch.

Texas: “Ethics Commission takes aim at Texas dark money” by David Saleh Rauf in the Houston Chronicle.

Virginia: “The Virginia bait and switch” by Brad Smith in The Hill.

Wisconsin: “Wisconsin Gov. Scott Walker sought help from top GOP donors for allied group” by Matea Gold in The Washington Post.

Ethics

Georgia: “Report: Costs to the state for lawsuit against Ga. ethics commission continue to grow” by The Associated Press in The Republic.

Rhode Island: “Ethics Commission to probe lawmaker’s beach bid” by The Associated Press in The Washington Times.

State Legislatures

California: “California Legislature Rushes to Complete Bills Before the Session Ends” by Patrick McGreevy and Melanie Mason in Governing.

Redistricting

Florida: “Judge Lets Florida Use Unconstitutional Congressional Map Until 2016” by Mary Ellen Klas in Governing.

U.S. District Court Judge D. Brock Hornby ruled in favor of four supporters of independent gubernatorial candidate Eliot Cutler who sued the state of Maine, alleging minor parties are at a disadvantage under sections 1015(1) and 1015(2) of Chapter 21-A of the Maine Revised Statutes. These provisions of law impose a per election limit of $1,500 per individual or entity.

Hornby granted a preliminary injunction, reasoning the per election limit unconstitutionally applied to supporters of Cutler. This ruling effectively allows supporters of Cutler to increase their contributions to $3,000 during the upcoming general election.

Whether the ruling will be appealed by the state is unclear.

The New York City Council is considering a measure increasing disclosure requirements for those making independent expenditures to influence city elections. Introduction 148 will require individuals and entities making independent expenditures totaling $5,000 or more to disclose the owners, partners, board members, or their equivalents of any entity reporting the expenditure. The measure further requires an individual or entity who transfers $1,000 or more to another individual or entity for the purpose of such other individual or entity making independent expenditures to report the transfer of money as if the transferor has directly made the independent expenditure.

Another provision of the measure requires individuals or entities to disclose detailed information on any electioneering communications, such as the top five donors to the entity responsible for the communication, and names of the owner and CEO of the entity.

Amy Loprest, the executive director of the New York City Campaign Finance Board, applauded the new disclosure requirements, saying, “This legislation will give voters a more complete view of who is paying for the campaign ads that fill their mailboxes and airwaves.”

If passed, Introduction 148 will take effect one year after its enactment.

The Municipal Securities Rulemaking Board (MSRB) is requesting comments on amendments to its pay-to-play law. MSRB Rule G-37 prohibits certain political contributions for two years prior to engaging in a municipal securities business where a related official received contributions. The amendments seek to extend the pay-to-play rule to municipal advisors.

In its press release, MSRB Executive Director Lynnette Kelly said, “Applying our well-established dealer pay-to-play rule to municipal advisors will help ensure that all regulated municipal market entities and professionals are held to the same high standards of integrity.”

Comments are due no later than October 1, 2014.

From the States and Municipalities:

California – Lawmakers Pass Bills to Outlaw Lobbyists’ Gifts, Disclose Actors Used in Campaign Commercials

Columbus Republic; Associated Press –   | Published: 8/18/2014

The California Assembly approved a measure that would lower the gift limit to elected officials from $440 to $200 and prohibit them from accepting free entry to professional sports and entertainment events, golf tournaments, spa treatments, and amusement parks. Senate Bill 1443 would outlaw gifts from lobbyists. It now goes back to the Senate for approval of minor amendments.

California – Panel Wants L.A. to Look at Using Prizes to Boost Voter Turnout

Los Angeles Times – David Zahniser | Published: 8/16/2014

With fewer than a fourth of voters showing up for recent local elections, the Los Angeles Ethics Commission voted to recommend that the city council consider a cash-prize drawing as an incentive to vote. Federal law prohibits payment for voting, but Ethics Commission member Jessica Levinson, who is also a law school professor, says that statute would not apply to elections without federal races on the ballot. California law prohibits money or gifts for votes for a particular candidate or measure, or payment to stay away from the polls altogether.

Colorado – Citizens United Suing Colorado over ‘Rocky Mountain Heist’ Funders

Denver Post – Joey Bunch | Published: 8/14/2014

Citizens United filed a lawsuit against Colorado Secretary of State Scott Gessler in federal court. The Virginia-based conservative group is finishing a movie called “Rocky Mountain Heist,” about those who have influenced Colorado’s political swing to the left over the past decade, calling out advocacy groups and politicians, likely including Gov. John Hickenlooper and U.S. Sen. Mark Udall, who are in tough races this fall. In June, Deputy Secretary of State Suzanne Staiert ruled the group would need to disclose the movie’s financiers under state campaign laws. The organization contended it deserved the same free-speech protections as traditional media.

Florida – Suspended Miami Lakes Mayor Michael Pizzi Is Found Not Guilty

Miami Herald – David Ovalle and Jay Weaver | Published: 8/14/2014

Suspended Miami Lakes Mayor Michael Pizzi was acquitted in a federal corruption case in which he was accused of accepting bribes from undercover FBI agents. Pizzi was accused of accepting $6,750 in payments between 2011 and 2013 in exchange for his help in obtaining federal grant money for both Miami Lakes and the nearby town of Medley, where he was the city attorney. The agents, pretending to be businesspeople, told Pizzi they intended to keep the hundreds of thousands of dollars in grant money for themselves. Pizzi’s lawyers portrayed him as honest and the victim of entrapment by overzealous FBI agents looking to make a high-profile arrest.

Indiana – Officials Defend Exceptions to Indiana Ethics Rules That Were Meant to Prevent Conflicts of Interest

Indianapolis Star – Ryan Sabalow | Published: 8/16/2014

Indiana’s ethics laws require that former state employees take at least a year off before working as a lobbyist or going to work for companies they once regulated. But an exception to the law allows public employees to circumvent the “revolving-door” rules. That exception: ask your former boss to grant you a waiver. The waiver is binding and does not require the approval of the state’s Ethics Commission. Other states such as Washington and Connecticut, which have earned top rankings by good-government groups for their “revolving-door” restrictions, do not allow waiting periods to be waived.

Massachusetts – Galvin to Launch Inquiry into Lobbyist

Boston Globe – David Scharfenberg | Published: 8/21/2014

Massachusetts Secretary of State William Galvin launched an inquiry into the activities of lobbyist John Brennan, who is a former state lawmaker. Attorney General Martha Coakley alleges the Brennan Group collected $370,000 in improper lobbying fees from the Franciscan Hospital for Children through a contingency fee. State law bars contingency agreements. In an agreement with Coakley’s office, the Brennan Group made no admission of guilt but agreed to repay Franciscan $100,000 of the disputed lobbying fees. “The agreement raises more questions than it answers,” said Galvin.

New Mexico – Duran, in Turnaround, OKs King’s Contested Campaign Contributions

Santa Fe New Mexican – Steve Terrell | Published: 8/14/2014

New Mexico Secretary of State Dianna Duran reversed her office’s initial finding that donations received by Democratic gubernatorial candidate Gary King violated the state’s campaign contribution limits. Facing a state Supreme Court hearing on the matter, Duran wrote in a letter to King that she no longer considered the donations in question to be impermissible. She said the decision was made after she weighed the arguments of King, the state’s attorney general.

New York – Bill Seeks More Disclosure for Certain Campaign Spending

Capital New York – Sally Goldenberg | Published: 8/20/2014

A bill that would mandate more information about independent expenditures be made public is expected to pass the New York City Council and be signed into law by Mayor Bill de Blasio. The legislation requires independent expenditures to list their top three donors on campaign literature they mail to voters. The information would also have to be presented on advertisements. It would not apply to those who give less than $5,000 in independent spending because they are not required to report their donors to the Campaign Finance Board.

Oklahoma – Ethics Commission to Consider Fees for Training

KGOU; eCapitol –   | Published: 8/20/2014

Under a proposed rule, the Oklahoma Ethics Commission would be able to charge registration fees to lobbyists, principals, PACs, and candidate committees. The commission would be required to publish the fees annually on July 1 of each year beginning in 2015. The proposed amendment will be the subject of a public hearing, and a possible vote during the commission’s September meeting.

Pennsylvania – U.S. Court Lifts Ban on Campaign Donations by Phila. Police Officers

Philadelphia Inquirer – Chris Hepp | Published: 8/20/2014

The U.S. Third Circuit Court of Appeals ruled Philadelphia police officers should be allowed to donate money to their union’s PAC. The ruling strikes down a ban enacted in 1919. The appeals court said the city had failed to show the prohibition, which applies to no other city employees, was effective in stemming political influence and corruption within the department, which was its original intent.

South Carolina – S.C. House Speaker Bobby Harrell Announces Grand Jury Probe Has Ended

Charleston Post & Courier – Cynthia Roldan, Jeremy Borden, and Schuler Knopf | Published: 8/16/2014

A grand jury investigation of South Carolina House Speaker Bobby Harrell has ended without charges and state Attorney General Alan Wilson has recused himself from the case, with the matter now in the hands a local prosecutor, according to Harrell’s office. A complaint alleged Harrell had improperly used campaign funds and had used his influence to obtain a state permit for his pharmaceutical business. Harrell has denied any impropriety.

Texas – Gov. Rick Perry of Texas Is Indicted on Charge of Abuse of Power

New York Times – Manny Fernandez | Published: 8/15/2014

A grand jury indicted Texas Gov. Rick Perry on two felony counts, saying he abused his office and used a veto threat to coerce Travis County District Attorney Rosemary Lehmberg to resign. The grand jury considered an ethics complaint that alleged Perry abused his veto power when he cut funding for the state’s anti-corruption unit, which is part of the Travis County district attorney’s office. The indictment comes as Perry, who is stepping down at the end of his term after 14 years in office, attempts to rehabilitate his political image as he considers another presidential campaign.

Washington – Ethics Panel Takes Preliminary Vote on Limiting Free Lobbyist Meals for Lawmakers

Columbus Republic – Rachel La Corte (Associated Press) | Published: 8/19/2014

Members of the Washington Legislature could get no more than 12 free meals a year from lobbyists under a plan tentatively approved by the Legislative Ethics Board. The board voted to define, for the first time, what current law means when it prohibits public officials from accepting free meals on more than “infrequent occasions.” The rule would not take effect until a final vote later this year on the overall proposal surrounding rules concerning meals.

Wisconsin – GOP Lawmakers Recruit Lobbyists for Door-to-Door Visits

Milwaukee Journal Sentinel – Patrick Marley | Published: 8/15/2014

Wisconsin Assembly leaders are recruiting lobbyists to help with door-to-door campaigns aimed at boosting the party’s majority in the chamber. The effort is called “Leggiepalooza,” a take-off on the Lollapalooza music festivals. Some lobbyists said they were uncomfortable with being asked to help with door knocking because they feared they could have a harder time passing bills if they did not participate. Others said they saw no problem with it.

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.

Lobbying

Alabama: “Campaign booster for Alabama Gov. Bentley was lobbyist for Corizon, prison health care contractor targeted in lawsuit” by Casey Toner in The Birmingham News.

Canada: “Joe Clark’s new job: Lobbying the federal government” by Glen McGregor in the National Post.

Campaign Finance

Florida: “David Rivera named co-conspirator as friend pleads guilty in campaign-finance case” by Marc Caputo, Jay Weaver and Patricia Mazzei in the Miami Herald.

Montana: “Out-of-state donors fund Daines’ Senate campaign” by The Associated Press in the Independent Record.

Vermont: “Vermont Public Money Gives Progressive Fundraising Edge” by Dave Gram (Associated Press) in Valley News.

Ethics

New York: “N.Y. poll: Government corruption a problem” by Jonathan Topaz in Politico.

Rhode Island: “Ethics Commission to probe lawmaker’s beach bid” by The Associated Press in The Washington Times.

Elections

“Top 5 Races to Watch in the Mid-Atlantic” by Nathan L. Gonzales in Roll Call.

Government Tech and Social Media

“Los Angeles Undertakes Massive Website Relaunch with Drupal” by Jason Shueh in Government Tech.

Redistricting

Florida: “Florida’s New Redistricting Plan: Round Two” by Linda Killian in The Wall Street Journal.

On July 30, the Chicago City Council enacted amendments to the Governmental Ethics Ordinance, chapter 2-156 of the Municipal Code of Chicago.

Changes include granting the Board of Ethics authority to review campaign finance filings and to refer potential violations to the appropriate investigating authority. Pay-to-play provisions have also been amended, affecting vendors, lobbyists, and any other person seeking to do business with the city.

Penalties are currently imposed only on the candidate, official, or employee accepting a prohibited contribution. Under the revised ordinance, however, the penalty provisions will also apply to persons making such contributions.

The amendments take effect September 10.

On August 14, Citizens United filed suit in federal court against Colorado Secretary of State Scott Gessler. The lawsuit is a response to Deputy Secretary of State Suzanne Staiert’s June decision classifying the group’s upcoming documentary as a reportable electioneering communication.

Citizens United had hoped the documentary would be excluded from the definition of reportable electioneering communication under a general press-entity exemption. Although the Federal Election Commission applies such an exemption for Citizens United at the federal level, the secretary of state lacked the authority to import the FEC’s analysis and decision.

Citizens United is now asking the court to permanently enjoin enforcement of applicable reporting and disclosure requirements in their entirety or, in the alternative, enjoin enforcement of the requirements as applied to Citizens United. The group argues its right to engage in political speech is significantly burdened while the rights of print media and broadcast facilities are not. Moreover, the group claims the reporting and disclosure requirements discriminate based on a speaker’s identity and, therefore, violate both the U.S. and Colorado constitutions.

Lobbying

Canada: “A fond farewell to former staffer and lobbyist Devon Jacobs” by Rachel Aiello in Hill Times.

Massachusetts: “AG hit on settlement with lobbyist” by Chris Cassidy in the Boston Herald.

Miami-Dade County, Florida: “Ethics Backs Lobbying Ban” on Miami Today.

Campaign Finance

“Planes, trains and campaign finance reports — the bane of every Senate candidate” by Jaime Fuller in The Washington Post.

Ethics

“I-Team: North Carolina Ethics Commission’s website problems could be a sign of a bigger issue” by Jon Camp on WTVD ABC News.

Georgia: “Ethics Commission: We’re back on track” by Aaron Gould Sheinin in The Atlanta Journal-Constitution.

North Carolina: “Carteret County man named chairman of State Ethics Commission” by Brad Christian on WNCT News.

Oklahoma: “Ethics Commission To Consider Fees For Training” on KGOU.

Washington: “Ethics Board Settles On 12 Lobbyist-Paid Meals Per Year” by Austin Jenkins on Northwest Public Radio.

Elections

“The 65 people who may run for president in 2016” by Bob Cusack in The Hill.

A group called Grow Connecticut recently paid $193,000 to produce a television ad targeting incumbent democratic governor Dannel Malloy. The conservative super PAC made the ad buy on the same day the state’s Republican Party filed a complaint against the Governor’s campaign and Connecticut Forward, a similar group, for illegal coordination.

Connecticut Forward, created and funded by the Democratic Governor’s Association, has also paid over $100,000 in support of Governor Malloy. The recent activity by these two groups brings to light the influence of outside groups on publicly funded campaigns.

Both Governor Malloy and the Republican nominee, Tom Foley, are participants in the Citizen’s Election Program, which caps their campaign funds to a $6.5 million grant from taxpayers. The program was created in an attempt to insulate state campaigns from special interest groups. Groups like Grow Connecticut, however, are allowed unlimited independent expenditures, increasing the call for greater transparency through disclosure to the voters.

Lobbying

“Spending on lobbying is actually falling. Or is it?” by Alexander Becker in The Washington Post.

“Researchers Try To Quantify The Value Of Lobbying” by Michael Ide in Value Walk.

Campaign Finance

“DCCC outraises NRCC by $3.5M in July” by Alexandra Jaffe in The Hill.

Arizona: “Scottsdale campaign-finance violation likely, city says” by Beth Duckett in The Republic.

California: “California lawmakers pass 3 campaign reform bills” by The Associated Press in the News & Observer.

Missouri: “Missouri Democratic group to pay $10K ethics fine” by The Associated Press in the News & Observer.

Ethics

“House Ethics panel probing Rep. Petri” by Mario Trujillo in The Hill.

“The Grimes family discount” by Manu Raju in Politico.

Florida: “Update: Group blasts city for challenging ethics initiative” by Jeff Burlew in the Tallahassee Democrat.

Oklahoma: “Ethics Commission Seeks Input Regarding Financial Disclosure Availability” on KGOU.

Washington: “Washington Legislative Ethics Panel To Consider Free-Meals Rule” by Austin Jenkins on KPLU.

Elections

“Revised Election Schedule Submitted in Florida Map Case” by Bridget Bowman in Roll Call.

Government Tech and Social Media

“Local Governments Open Data with Performance Dashboard” by Colin Wood in Government Technology.

“Report Ranks Top Open Data States” by Colin Wood in Government Technology.

Lobbying

“AGRP lauds lobbying reversal — Can big $$ save Ex-Im?” by Byron Tau and Adam Sneed in Politico.

“There are 65 former lobbyists currently working in the Obama administration” by Philip Bump in The Washington Post.

Florida: “Firms lobbying Florida Legislature collected millions in payments during second quarter” by Jim Saunders in The Florida Times-Union.

Missouri: “When It Comes To Gifts, Lobbyists Don’t Discriminate By Party” by Chris McDaniel in St. Louis Public Radio.

“At lobbying unit of Drinker Biddle & Reath, testing out a new consulting model” by Catherine Ho in The Washington Post.

Campaign Finance

“Nancy Pelosi brings pols, donors to wine country” by Anna Palmer and John Bresnahan in Politico.

Arizona: “Officials: Arizona Free Enterprise Club violated election law” by The Associated Press in KTAR.

Colorado: “Citizens United movie spawns campaign finance lawsuit” in The Kansas City Star.

Florida: “Big industry behind PAC spending” by Heather Wysocki in the News-Press.

Virginia: “Big money, sharp elbows in special senate election” by The Associated Press in The Washington Post.

Wisconsin: “Scott Walker: Campaign finance reform crusader?” by Jessie Opoien in The Capital Times.

Ethics

“Bill would limit members of Congress in hiring family” by Corey Mitchell in the Star Tribune.

“Former DARPA Chief Broke Ethics Rules, Watchdog Finds” by Charles S. Clark in Government Executive.

“Media Matters founder joins watchdog CREW” by Megan R. Wilson in The Hill.

Arkansas: “Arkansas Ethics Commission to ask for more funding” by Johnathan Reaves on KASU.

Government Technology

“How the Cloud is Changing Everything for Government IT” by David Raths in Government Technology.

A ruling is expected in the coming days in a federal lawsuit challenging certain provisions of Maine’s campaign finance law.

Four supporters of gubernatorial candidate Eliot Cutler sued the state of Maine, alleging minor parties, including independent candidates, are at a disadvantage under sections 1015(1) and 1015(2) of Chapter 21-A of the Maine Revised Statutes. These provisions of law limit political contributions to a gubernatorial candidate from an individual, political committee, corporation, or business entity to $1,500 in any election.

Cutler is running as an independent and therefore did not participate in a primary election. As a result, the law only allows Cutler to collect $1,500 per contributor because he will only participate in the general election.

The plaintiffs are seeking both a preliminary and a permanent injunction to stifle enforcement of the $1,500 per election limit as applied to independent candidates. If U.S. District Judge D. Brock Hornby decides to enjoin the law, the injunction will apply to the 2014 election cycle.