National:

Governors’ Groups Rely Increasingly on ‘Dark Money’ Affiliates

Federal:

Hanford Contractor Reaches $1.1 Million Settlement in Whistleblower Suit Involving Training Program

Most Lobbyists Following Disclosure Rules, Government Report Says

From the States and Municipalities:

Alaska – House Trips over Bad Jokes and a Representative’s Tongue

Arizona – Federal Judge Strikes Down 2 Arizona Anti-Union Statutes

Florida – Lawmaker Complains about Getting Out of Speeding Ticket; Trooper Fired

Florida – Lawmakers Seek Exceptions to Free Food and Drink Ban

Georgia – New Ga. Lobbying Rules Raise Fresh Issues

Iowa – Sex Offender Faces Charge after Lobbying Legislators

Maryland – Maryland Close to Raising Political Donation Limit to $24,000

New Jersey – Secret Recording Led to Criminal Case against N.J. Engineering Firm Birdsall Services Group

New York – Lawmakers in New York Tied to Bribery Plot in Mayor Race

North Carolina – NC Court of Appeals Sends Case against Lobbyist Back to Trial Court

Pennsylvania – Judge Throws Out All Campaign Finance Limits in Pittsburgh Mayoral Race

South Carolina – GOP Frets Mark Sanford Could Blow 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.

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.

Q. I am interested in making a political contribution in Puerto Rico. What are the current political contribution limits? Am I required to disclose my contribution?

A. In Puerto Rico, individuals and PACs may make contributions.  Direct corporate contributions are prohibited. Puerto Rico has recently raised the annual political contribution limits. In response to the Federal Election Commission raising the federal contributions limits in 2 U.S.C. §441a(a)(1)(A),  the Oficina del Contralor Electoral (OCE) issued Circulated Letter OCE-CC-2013-02. The circulated letter raises the individual and PAC contribution limits to $2,600 per candidate per year, with an aggregate contribution limit of $13,000.  In an election year, the limits are modified to $2,600 per candidate per election, and $13,000 in the aggregate per election. These contribution limits do not apply to independent expenditures.

There are no reporting requirements for individuals making contributions in Puerto Rico.  PACs, however, have a quarterly disclosure requirement for any quarter in which contributions were received or expenditures were made.  PACs established and registered in a jurisdiction other than Puerto Rico have separate reporting requirements under the campaign finance regulations issued by the OCE.

For specific guidance on making contributions in Puerto Rico, please contact Sarah Kovit.

You can directly submit questions for this feature, and we will select those most appropriate and answer them here. Send your questions to: marketing@stateandfed.com.

(We are always available to answer questions from clients that are specific to your needs, and we encourage you to continue to call or e-mail us with questions about your particular company or organization. As always, we will confidentially and directly provide answers or information you need.) Our replies to your questions are not legal advice. Instead, these replies represent our analysis of laws, rules, and regulations.

The Senate has passed a campaign finance reform bill, including a provision allowing public financing of local campaigns. House Bill 1499 raises campaign contribution limits, for the first time in two decades, from $10,000 to $24,000 within a four-year election cycle. The bill also curbs giving through multiple corporate entities for the purpose of evading contribution limits, increases reporting requirements, and gives the State Board of Elections new enforcement powers.

An amendment to remove a public financing option for counties was rejected by a 25-16 vote.

The Senate passed House Bill 1499 and cross-filed Senate Bill 1039 on Wednesday, April 3, 2013 by a 45-2 vote. The bill now must be reconciled with a different version passed by the House.

The contributions limits in the upcoming Pittsburgh mayoral election have been removed by the courts. Judge Joseph James voided the city’s contribution limits because of one candidate’s decision to contribute his own money to his campaign.

Under city law, candidates may only accept $2,000 from individuals and $4,000 from PACs per covered election. However, if a candidate decides to use personal resources in excess of $50,000 for his or her campaign, then the contribution limitations are thrown out for all candidates in that specific race.

In this situation, Councilman Bill Peduto requested an injunction barring former state Auditor General Jack Wagner from using nearly $300,000 in contributions collected during previous campaigns. The judge ruled the use of the previous campaign funds to be a contribution, which would have exceeded the city’s contribution limits.

Wagner’s lawyers then turned their attention to Michael Lamb, the city controller who withdrew from the race earlier in the week. Lamb had given his campaign $53,000 of his own money, which voided the contribution limits and allowed Wagner to use the $300,000 in question. Lamb attempted to give $3,000 from the campaign back to himself in order to undo the contribution, but the judge ruled that the refund did not repair the breach.

The primary election for the mayoral office takes place on May 21, 2013 and the general election on November 5, 2013.

Photo of downtown Pittsburgh by Theeditor93 on Wikipedia.

Campaign Finance

“As Obama begins fundraising swing, campaign finance watchdogs growl” by David Nakamura in the Washington Post.

Maryland: “Campaign finance reform advances in Senate” by Michael Dresser in the Baltimore Sun.

New York: “Campaign finance reform gains momentum” by Dan Levy in WNYT News.

New York: “Campaign reform advocates say NY scandals show need to change Albany culture” by The Associated Press in The Republic.

Ethics

Florida: “Palm Beach County ethics board targeted for state audit” by Jennifer Sorentrue in the Palm Beach Post.

New York: “Lawmakers in New York Tied to Bribery Plot in Mayor Race” by Michael Wilson and William K. Rashbaum  in the New York Times.

New York: “Rogues gallery of corruption cases” by Rick Karlin in the Albany Times Union.

From the State Legislatures

Alaska: “Kawasaki draws rebuke for conduct on House floor” by The Associated Press in the Juneau Empire.

Nebraska: “Late nights planned for state lawmakers” by The Associated Press in the Lincoln Journal Star.

Oregon: “Many bills in Oregon Legislature won’t see the light of day” by Laura Fosmire in the Statesman Journal.

It has been a long cold winter for most of the country and though it may be hard to see, sunshine and warm weather are fast approaching. While cold temperatures and snow are making summer seem far in the distance, Major League Baseball’s opening week is upon us and that means summer is close. With America’s pastime finally here, the Sunlight Foundation did a report on how much Major League Baseball and its clubs contributed to campaigns and PACs throughout the last election cycle.

According to the report, MLB organizations contributed more than $24 million last election cycle. The Chicago Cubs can’t win on the field (they have not been to a World Series since 1945 and have not won since 1908), but they certainly won the political spending war. The Cubs spent $13.9 million, more than $12 million more than any other team. Most of that money, more than $12 million, went to a PAC started by the Ricketts family (the team’s ownership group) established to fight wasteful spending in Washington and the defeat of President Obama. However, not all of the family veered to the right with their spending. Laura Ricketts spend more than $500,000 on Democratic candidates and PACs.

The Cubs rival, and President Obama’s favorite team, the Chicago White Sox were one of the few teams who favored the Democrats in their spending. The White Sox gave several donations to Obama, amounting to $60,000 and only $7,000 to Obama’s opponent in the presidential election, Mitt Romney.

Not all teams spend heavily though. The Toronto Blue Jays did not contribute a single penny, as federal laws do not allow foreign contributions to campaigns. The Oakland Athletics only gave a $5,000 contribution to the league’s PAC and gave nothing to either the Republican or Democratic parties. The New York Yankees, owners of the league’s highest payroll at nearly $229 million, only spent $43,000 off the field in political donations.

In addition to the individual teams contributing, Major League Baseball operates its own PAC, called the MLB Commissioner’s Office PAC. The league collects donations from each team and contributes fairly evenly to both the Democrats and Republicans. The Los Angeles Dodgers were the only team to eschew a donation to the league’s PAC.

Most of the donations coming from baseball were made by team executives and owners. However, a few current and former players decided to contribute. Players to contribute to the Republicans included White Sox second baseman Gordon Beckham, New York Yankees designated hitter Travis Hafner, and San Diego Padres closer Huston Street. Los Angeles Dodgers outfield Tony Gwynn Jr. was the only current player to contribute to the Democrats, but he was joined by Hall of Famers Hank Aaron and Lou Brock.

For a complete look at how each team contributed, check out the Sunlight Foundation’s report. And just remember, no matter how miserable the weather may be today, baseball is here and summer is right around the corner.

Lobbying

“Street Talk: The Curious Cases of Vanishing Lobbyists” by Kate Ackley in Roll Call.

California: “Special interests spent $277 million lobbying in 2012 at state Capitol” by Marc Lifsher in the Los Angeles Times. (via the Political Activity Law blog.)

New Mexico: “Former New Mexico state senator, ex-lobbyist Odis Echols dies at 82” by The Associated Press in The Republic.

North Carolina: “NC Court of Appeals sends case against former lobbyist back to trial court” by Anne Blythe in the News & Observer.

Campaign Finance

Los Angeles, California: “Our porous campaign laws” op-ed piece in the Los Angeles Times.

New York: “Groups Seek State Campaign Finance Reform” on WNYF News.

Ethics

Connecticut: “Bills to address the costs of blight and conflicts of interest” by Ken Dixon in the Connecticut Post.

Iowa: “Session may adjourn with ethics charges unresolved” by William Petroski in the Des Moines Register.

Texas: “Senate panel OKs tweaks to ethics panel; critics say major reforms ignored again” by Mike Ward in the Austin American-Statesman.

From the State Legislatures

New Jersey: “150 candidates file peititons to seek legislative nominations” by Anthony Campisi in the Bergen Record.

“Expulsions of State Legislators are Rare” in NCSL’s The Thicket.

Elections

“Presidential Election Commission: It’s Official” by Wendy Underhill and Karen Shanton in NCSL’s The Thicket.

Government Teach and Social Media

“The Present, and Future, of Social Media in Government” by Mark Micheli in Government Executive.

Lobbying

Florida: “Florida lawmakers weigh bill to tweak lobbyist gift ban” by Jim Saunders in the Miami Herald.

Georgia: “New lobbyist law leaves possible loopholes” by Aaron Gould Sheinin, Chris Joyner and James Salzer in the Atlanta Journal-Constitution.

Kentucky: “Ethics Commission reports $4.2M spent on lobbying in Frankfort in January, February” by The Associated Press in The Republic.

New York: “Lobbying spending in N.Y. dropped to $205M in 2012” by Jon Campbell in the Democrat and Chronicle.

New York: “Pro-Cuomo Group Repeats as Top Spender on Lobbying” by Thomas Kaplan in the New York Times.

Oregon: “State, colleges lobbying costs top $1M” by Raju Chebium in the Statesman Journal.

Campaign Finance

Connecticut: “Boosting public financing for campaigns is off the table” by Mark Pazniokas in the Connecticut Mirror.

Nebraska: “Measure repeals Neb. campaign finance law but seeks to put campaign spending reports online” by The Associated Press in The Republic.

New York: “New Ads to Press Albany on Campaign Financing” by Thomas Kaplan in the New York Times.

Vermont: “Campaign finance reform bill in jeopardy” in the Rutland Herald.

West Virginia: “W.Va. House seeks anti-Citizens United amendment” by The Associated Press in WTRF.com.

Ethics

“Larry Craig Loses Major Battle in Fight Against FEC” by Steven T. Dennis in Roll Call.

“STOCK Act Endangers National Security, Report Says” by Niels Lesniewski in Roll Call.

North Dakota: “Gov. Dalrymple’s energy stocks, contributions raise questions” by Amy Dalrymple in InForum.

Ohio: “Jimmy Dimora files federal appeal claiming innocence” by James F. McCarty in the Plain Dealer.

From the State Legislatures

Georgia: “Ga. lawmakers take flurry of votes on final day” by The Associated Press in the Atlanta Journal-Constitution.

Redistricting

Texas: “Texas redistricting fight resumes” by Tim Eaton in the Austin American-Statesman.

Open Government

“Which States Aced the Spending Transparency Test?” in Government Technology.

Government Tech and Social Media

“Internal Website HouseNet Gets a Makeover” by Emma Dumain in Roll Call.

“NASA Becomes The Most-Followed Government Twitter Account, Nominated For Second Shorty Award” by Benny Luo in NewMediaRockstars.com.

Hawaii: “Bill would require state to post more information online” by The Associated Press in the Honolulu Star Advertiser.

Federal:

Why Republicans Still Run K Street

From the States and Municipalities:

Arizona – Arizona Legislature Is Short on Ethics Rules

Florida – Florida Governor Shuts Down Office after Resignation

Georgia – Georgia Lawmakers Reach Deal on Lobbying Rules

Illinois – Illinois Supreme Court Reverses Ruling on Chicago Inspector General’s Power

Illinois – Lobbyist Uses Political Savvy in Springfield to Tackle Bill – Her Water Bill

Kentucky – Richie Farmer’s Sister Placed on Leave over Ethics Charges against Her

Montana – Murry Will Not Seek Confirmation to Political Practice Post

Nevada – Banishment Ends Brooks Saga: ‘We did not feel safe’

Nevada – Senate OKs Bill for Quarterly Lobbyist Reports

New Jersey – Campaign Finance Watchdog Agency Says Outside Democratic Group Must Adhere to Contribution Limits

New Jersey – Seven from Birdsall Services Group Engineering Firm Indicted in Plot to Hide Political Gifts

Pennsylvania – Turnpike Case Has Bribery Charges, But Not Against Bribers

Wyoming – Judge Rejects Lawsuit by Wyoming Free Speech

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

“Internet Association bolsters lobbying force” by Jennifer Martinez in The Hill.

Colorado: “Colorado gun lobbyist says he did nothing to warrant an ethics charge” by Lynn Bartels in the Denver Post.

Georgia: “Deal reported on lobbyist gift reform” by Greg Bluestein and Chris Joyner in the Atlanta Journal-Constitution.

Campaign Finance

“OFA Campaign Finance Reform Push Explained In Call To Supporters” by Paul Blumenthal in the Huffington Post.

Arizona: “Clean Elections’ funding could be returned to ballot” by Sean Peick in the Arizona Republic.

Illinois: “Bernard Schoenburg: Gaps remain in campaign finance reporting rules” – opinion piece by Bernard Schoenburg in the State Journal-Register.

Corporate Political Advocacy

“Poll: Public wary of corporate politics” by Byron Tau in Politico.

Open Government

“New law requires 72 hours of notice for public meetings” by The Associated Press in the Santa Fe New Mexican.

From the State Legislatures

Virginia: “Lacey Putney, longest-serving Va. lawmaker, to retire” by The Associated Press in the Times Dispatch.

Lobbying

“K St. winners and losers in budget votes” by Kevin Bogardus in The Hill.

“Under Contract” in The Hill.

“K Street Files: SEIU Launches Immigration Ads” by Kate Ackley in Roll Call.

Georgia: “Drama over ethics reform builds toward session’s finale” by Aaron Gould Sheinin, Chris Joyner and Kristina Torres in the Atlanta Journal-Constitution.

Nevada: “State Senate votes for more lobbyist transparency” by Ed Vogel in the Las Vegas Review-Journal.

Campaign Finance

New York: “OFA joins New York campaign finance reform fight” by Maggie Haberman in Politico.

West Virginia: “Campaign financing bill advances” by Phil Kabler in the Charleston Gazette.

Ethics

Maryland: “Dixon to give talk, consider return to politics” by Jena Marbella in the Baltimore Sun.

From the State Legislatures

“Committee recommends Brooks be expelled from Legislature” by Anjeanette Damon in the Las Vegas Sun.

Political Advertising

“Think Your Advocacy Group is Not Subject to FEC Rules? Think Again.” in Political Law Briefing via Eric Brown’s Political Activity Law Blog.

Open Government

“New Transparency Grades Issued for States” by Mike Maciag in Government Technology.

Arkansas: “Arkansas gets ‘C’ in spending transparency report” in Arkansas News.

Tennessee: “Rep. Glen Casada withdraws bill on open meetings law” by The Associated Press in The Tennessean.

West Virginia: “W.Va.’s spending transparency grade falls” by Eric Eyre in the Charleston Gazette.

Redistricting

Florida: “Legislators ask court to shield them from having to testify over maps” by Mary Ellen Klas in the Miami Herald.

Lobbying

Georgia: “House makes ethics changes; Deal urges action” by Greg Bluestein, Aaron Gould Sheinin and Kristina Torres in the Atlanta Journal-Constitution.

“Ex-lawmakers go to lobbying-related jobs” by Fredreka Schouten in USA Today.

“Facebook’s Zuckerberg to launch lobby group with Washington consultants” by Jennifer Martinez in The Hill.

Campaign Finance

Florida: “Friend of U.S. Rep. Vern Buchanan evades prison time for illegal fundraising” by Susan Taylor Martin in the Tampa Bay Times.

Montana: “Bill to overhaul campaign finance law passes” by Charles S. Johnson in the Billings Gazette.

Ethics

“Michele Bachmann under investigation for campaign finance violations” by John Bresnahan and Byron Tau in Politico.

Connecticut: “Today’s lesson: Politicians dislike being called corrupt” by Mark Pazniokas in the Connecticut Mirror.

Texas: “Donations to Judicial Campaigns Spur Ethics Worries” by Maurice Chammah in the Texas Tribune.

Elections

Alabama: “Election runoffs targeted; legislation would allow candidates to win nominations with just 35 percent to win in a primary vote” by Brian Lyman in the Montgomery Advertiser.

Maine: “Bill would bar secretary of state, attorney general and treasurer from running for office” by Christopher Cousins in the Bangor Daily News.

From the State Legislatures

Idaho: “House targets Friday adjournment – barring mishaps” by The Associated Press in the Idaho State Journal.

South Dakota: “SD Legislature ends annual legislative session” in the Rapid City Journal.

Utah: “Utah Legislature passed record number of bills” by Lee Davidson in the Salt Lake Tribune.

Government Tech

“San Francisco Tells New York: Our Data Is Bigger Than Your Data” by Sarah Lai Stirland in TechPresident.

New York City mayoral candidate George McDonald has momentarily thrown up the white flag in his attempt to circumvent the contribution limits. McDonald, who is running for the Republican nomination, filed suit against the New York City Campaign Finance Board in hope of removing the city’s very strict contribution limits.

McDonald’s argument relied on the theory that the state’s contribution limits, which are higher than the city’s limits, superseded the city’s restrictions. McDonald had hoped for a quick resolution, but the court has taken nearly a month to decide the case and McDonald fears he is running low on time.

McDonald now plans on raising enough funds to qualify for the public financing system, meaning he will have to raise at least $250,000 from donations of up to $175. If he is able to do that, the city will give his campaign $1.5 million.

McDonald is considered a long shot to win the Republican nod as he is going up against a political veteran, Joseph Lhota, and a billionaire businessman, John A. Catsimatidis. McDonald has argued that the city’s laws give these two types of candidates an unfair advantage over first-time candidates.

McDonald’s lawsuit still must be decided by the court, but most experts believe he has little chance of winning.

Image of the flag of New York courtesy of Wikipedia.

On March 21, 2013, the New Jersey Election Law Enforcement Commission (ELEC) issued an advisory opinion deciding it does not have the jurisdiction to declare contribution limits unenforceable or unconstitutional for political committees making only independent expenditures.

Advisory Opinion 01-2013 holds current state registration and reporting requirements and contribution limits apply to political committees making independent expenditures.

Fund for Jobs and Growth, a political organization not registered in the state and intending to make independent expenditures in the state’s 2013 elections, requested the opinion in order to determine whether it needed to register and report with the state and whether the state contributions limits for political committees applied to its fundraising activity. The organization was held to be a political committee requiring registration and reporting.

While holding state contribution limits apply, the opinion notes several other jurisdictions have held contribution limits applied to political committees making independent expenditures are unconstitutional. ELEC did not find “that the Third Circuit Court of Appeals has addressed these issues, nor has the United States Supreme Court issued a specific determination concerning the constitutionality of contribution limits for political committees making only independent expenditures.”