Campaign Finance

National: “Koch-Linked Nonprofit Must Disclose Donors, Settlement Mandates” by Kenneth Doyle for Bloomberg Government

California: “Commissioner Enjoyed Fine Dining, ‘Relationship Building’ with Insurance Executives Before Donations, Action in Their Favor” by Jeff McDonald for San Diego Union Tribune

Maryland: “Hogan Raising ‘Dark’ Money to Boost His Agenda, Stop Costly Education Plan” by Erin Cox (Washington Post) for Connecticut Post

Massachusetts: “Sen. Jo Comerford Bill Would Ban Use of Public or Campaign Funds for Sexual Harassment Payouts” by Katie Lannan (State House News Service) for MassLive.com

Ethics

New York: “Trump Lawyers Argue He Cannot Be Criminally Investigated” by Michael Gold (New York Times) for MSN

Washington DC: “Why a D.C. Lawmaker Under Investigation Votes on His Own Probe and Discipline” by Fernit Nirappil for Washington Post

Lobbying

Florida: “Sen. Farmer Says There Is No Conflict of Interest Over His Relationship with Lobbyist” by Gary Roher for Orlando Sentinel

New York: “De Blasio to Developers: Donate to my nonprofit. $125,000 came” by Jeffrey Mayes (New York Times) for ENM News

National/Federal

Amazon to Start Voice-Controlled Donations to 2020 Presidential Campaigns
Houston Chronicle – Michelle Ye Hee Lee (Washington Post) | Published: 9/18/2019

Starting in October, customers will be able to donate to presidential campaigns through Amazon’s Alexa. The latest evolution in campaign technology raises new questions about how such contributions will be screened to make sure they are legal. It also points to challenges federal regulators face in keeping up with such innovations without a functioning FEC, which lost its voting quorum recently. Amazon will not report directly to the FEC or make donor information public, said company spokesperson Kerry Hall. Instead, it will provide to campaigns the donors’ name, email address, and physical address. Federal regulations allow commercial vendors to process contributions for campaigns as long as they meet certain requirements.

Andrew Yang Said He Would Give 10 People $1,000 Each Month. Is That Legal?
MSN – Matt Stevens (New York Times) | Published: 9/13/2019

Unlike earlier, when Democratic presidential candidate Andrew Yang paid what he calls “freedom dividends” out of his own pocket to three families, his advisers said the money to provide every American adult with $1,000 a month would be funded by campaign donations, raising questions about whether such a giveaway violates election law. To differentiate campaign expenses from personal ones, regulators must determine whether the expense would exist if the candidate were not running for office. Yang’s campaign said the planned payments would pass legal muster because they would not exist if not for the campaign. But FEC rules specify the personal use of campaign funds by “any person” is prohibited. And the families that would receive $12,000 over the course of a year from Yang would almost certainly spend the extra money on such expenses, which experts said could be problematic.

Appeals Court Revives Foreign Corruption Suit Against Trump
Politico – Josh Gerstein | Published: 9/13/2019

A federal appeals court resurrected the first lawsuit Trump faced over claims his business dealings violated the Constitution’s foreign emoluments clause, which bars federal officials receiving payments from foreign governments. A panel of the Second Circuit Court of Appeals ruled a District Court judge erred in 2017 when he dismissed a lawsuit challenging profits Trump has received from foreign officials doing business with his Washington, D.C. luxury hotel and other Trump-branded properties. The suit also took issue with Trump Organization licensing arrangements approved by foreign governments. The judge who originally dismissed the suit said the plaintiffs’ claims of harm were too speculative and remote to let it go forward. The appeals court said the case was a viable one on the grounds of so-called competitor standing.

Bid to Unmask Dark Money Donor Lands in DC Circuit
Courthouse News Service – Megan Mineiro | Published: 9/13/2019

The U.S. Court of Appeals for the District of Columbia Circuit heard arguments in a lengthy legal battle entangling federal courts over the issue of so-called dark money campaign contributions. For the second time, a three-judge panel in Washington took up a case in which the U.S. Supreme Court last year allowed a lower court decision forcing Crossroads Grassroots Policy Strategies to disclose donors to take effect. The original complaint by Citizens for Responsibility and Ethics in Washington (CREW) claimed Crossroads GPS sidestepped campaign finance laws by not disclosing the name of an anonymous donor who contributed millions of dollars at a fundraising event to then-Ohio Treasurer Josh Mandel’s campaign for the U.S. Senate. After the FEC denied CREW’s complaint, the group sued the agency, arguing it had ignored Congress’ mandate with the regulation that allowed Crossroads GPS to maintain donor secrecy.

Elaine Chao Investigated by House Panel for Possible Conflicts
ENM News – Eric Lipton and Michael Forsythe (New York Times) | Published: 9/16/2019

The House Oversight and Reform Committee asked Transportation Secretary Elaine Chao to turn over documents related to communication with her family’s shipping company. The request relates to actions Chao has taken that potentially benefited Foremost Group, a New York-based shipping company owned by her family. Foremost has received hundreds of millions of dollars in loan commitments from a bank run by the Chinese government to help build ships that Foremost has purchased from government-owned shipyards there. The actions by Chao, including joint public appearances since she became transportation secretary with her father, who founded the company, and a planned trip to China to meet with government officials there, have led House investigators to question if she is using her office to try to benefit her family’s financial interests.

Elizabeth Warren’s K Street Overhaul
Roll Call – Kate Ackley | Published: 9/17/2019

Democratic presidential candidate Elizabeth Warren announced a new set of proposals aimed at curbing the “revolving door” between business and government. She would prohibit members of Congress and other top officials from ever becoming lobbyists and would expand waiting periods to at least two years for lower-level officials. Warren would also prohibit lobbyists from donating to political campaigns or from fundraising on their behalf and would abolish the current threshold for when someone must register to lobby. Her plan also would prohibit lobbying activities on behalf of foreign governments, something that is now standard practice on K Street.

Inaction on Kavanaugh Allegations Reignites Political Rancor
Laredo Morning Times – Seung Min Kim (Washington Post) | Published: 9/16/2019

Days before Brett Kavanaugh was confirmed to the Supreme Court, U.S. Sen. Christopher Coons sent a letter to the FBI, urging “appropriate follow up” on new information he believed was relevant to sexual misconduct allegations made against the nominee. Then, apparently, not much happened. Not at the FBI, which did not interview the person whom the senator referred to the bureau. Not in the office of then-Judiciary Committee Chairperson Charles Grassley, which was copied on the letter. And not among Democrats, several of whom had been unaware of the information until a New York Times report detailed a new alleged incident involving Kavanaugh. That inaction has renewed a debate about how his confirmation was handled, angering Democrats about a process they felt was rushed and animating Republicans who decried what they viewed as attempts to assassinate Kavanaugh’s character.

Lobbyist Registry May Become Available This Week
Weekly Journal – Giovanna Garolfalo | Published: 9/18/2019

The Puerto Rico Department of Justice is expected to launch its digital platform to register lobbyists soon. The move would come more than two months after then-Gov. Ricardo Rosselló signed an executive order to create a lobbyist registry and establish the “code of total transparency” for all agency heads within the executive branch. The executive order states that any individual who is carrying out lobbying activities must register and submit an affidavit that includes information about their clients in any government agency; the business or businesses in which they participate; and the list of people for which they are performing lobbying activities, among other provisions.

Trump Outpaces Obama, Bush in Naming Ex-Lobbyists to Cabinet
AP News – Richard Lardner | Published: 9/17/2019

In less than three years, President Trump has named more former lobbyists to Cabinet-level posts than his most recent predecessors did in eight, putting a substantial amount of oversight in the hands of people with ties to the industries they are regulating. Instead of staring down “the unholy alliance of lobbyists and donors and special interests” as Trump recently declared, the influence industry has flourished during his administration. The review was limited to the Trump, Obama, and George W. Bush administrations because prior to 1995 there was no central database of federal lobbying registrations and the law was hazy about who was supposed to register.

Canada

Canada – Third Incident of Canadian PM Justin Trudeau in Racist Makeup Emerges
Grand Forks Herald – Amanda Coletta, Hannah Knowles, and Reis Thebault (Washington Post) | Published: 9/19/2019

A third incident of Canadian Prime Minister Justin Trudeau appearing in racist makeup emerged hours after he apologized for wearing brownface at an Arabian Nights-themed party and blackface at a high school performance. The succession of revelations rocked Trudeau’s campaign as he faces a tough battle for a second term. Trudeau apologized after Time magazine published a yearbook photograph taken in 2001, when he was a teacher at West Point Grey Academy in Vancouver. It depicts the then-29-year-old smiling while wearing a feathered turban, his face darkened. Trudeau also admitted to wearing blackface in high school while singing the song “Day-O” at a talent show.

From the States and Municipalities

Alaska – Insurance-Focused Political Group Fined $5,500 After Decade of Failed Disclosure
Anchorage Daily News – James Brooks | Published: 9/18/2019

The Alaska Public Offices Commission (APOC) voted to fine an insurance-focused PAC $5,500 to settle a complaint it failed to register with the commission for more than a decade and for two years accepted contributions that violated state law. According to the settlement agreement, INSURPAC of Alaska failed to file campaign disclosure reports between 2005 and 2017. In 2015 and 2018, it received contributions that violated the $500 per-person annual cap. The violations were discovered after INSURPAC voluntarily disclosed them to APOC.

Arizona – Ballot Proposal Seeks to Block Lawmakers from Voting on Issues They Benefit From
Arizona Daily Star – Howard Fischer (Capitol News Services) | Published: 9/17/2019

A new initiative proposal in Arizona seeks to block state lawmakers from proposing and voting on measures that could benefit themselves and family members. Paperwork filed with the secretary of state’s office would make it illegal for legislators to take any action on measure in which they or a relative have a “direct and substantial financial interest.” That is defined to mean any financial benefit that is not shared by at least a significant portion of the general public. There are conflict-of-interest restrictions on lawmakers currently. But that has generally been defined as a “rule of 10,” meaning there is no legal conflict if the legislation affects at least 10 people.

California – Politics Is a Swamp, but California and Washington Get High Marks for Their Ethics Enforcers
Sacramento Bee – Andrew Sheeler | Published: 9/12/2019

California’s state ethics agency is among the most transparent in the nation, while Washington’s agencies have mixed reviews. The Coalition for Integrity released its annual S.W.A.M.P. index, this year rating states by the transparency of their ethics agencies. It is a follow up to the 2018 report, which ranked states by the scope and independence of their ethics agencies, including enforcement power. In the 2019 report, California ranked third in the nation. Washington state earned mixed marks, putting it tied for sixth in the nation overall.

Delaware – Supreme Court Says Judges Are Above Politics. It May Hear a Case Testing That View.
ENM News – Adam Liptak (New York Times) | Published: 9/16/2019

U.S. Supreme Court justices insist politics plays no role in their decision making. But their voting patterns and the partisan confirmation battles for seats on the high court tell a different story. The debate over the role politics plays in judging is mostly theoretical. But a petition filed by Delaware Gov. John Carney Jr. makes it concrete. It asks the justices to consider whether states may take account of the political affiliations of judges to try to achieve something like ideological balance on their courts. The Delaware Constitution says judges affiliated with any one political party can make up no more than a “bare majority” on the state’s highest courts, with the remaining seats reserved for judges affiliated with the “other major political party.” James Adams, a retired lawyer and registered independent, challenged the balancing provision, saying it violated the First Amendment.

Florida – Ron DeSantis’ Political Team Planned $25K Golf Games, $250K ‘Intimate Gatherings,’ Memos Say
Tampa Bay Times – Steve Contorno | Published: 9/12/2019

Paying for access to powerful politicians is hardly new. President Clinton famously allowed top donors to stay in the Lincoln Bedroom at the White House during the 1990s. President Trump’s chief of staff Mick Mulvaney once bragged, “If you’re a lobbyist who never gave us money, I didn’t talk to you. If you’re a lobbyist who gave us money, I might talk to you.” But internal documents from Florida Gov. Ron DeSantis’ campaign committee provide a rare peek into the inner workings of the main political operation behind Florida’s top elected official.  The memos lay out how DeSantis’ political and gubernatorial staff could work together to meet a personal goal of their boss: Make DeSantis a nationally known political entity.

Illinois – Ethics Board Levels $25K Fine on Political Consultant Recorded Allegedly Arranging Viagra, Sexual Services for Ex-Chicago Alderman
Chicago Tribune – Juan Perez Jr. and Jason Meisner | Published: 9/16/2019

The Chicago Board of Ethics fined political consultant Roberto Caldero $25,000, concluding there was probable cause to believe he “engaged in several acts of unregistered lobbying.” The board cited media reports on a court filing that showed the FBI investigated alleged corruption by former Ald. Daniel Solis. The council member sought Viagra at a massage parlor from Caldero while the consultant was lobbying Solis on a variety of issues. There was no evidence Solis ever paid Caldero for the pills. An affidavit suggested Caldero also offered prostitution services to Solis on several occasions. Officials suggested more fines could be on the way. “We continue to look at this, and as in the past, we have also looked to the employer of unregistered lobbyists and taken action with regard to them,” board Chairperson William Conlon said.

Illinois – Illinois Gaming Board Chair Who Resigned in June Engaged in Prohibited Political Activity While in Charge of Body That Regulates Gambling, Watchdog Finds
Chicago Tribune – Dan Petrella | Published: 9/18/2019

Don Tracy, who resigned as chairperson of the Illinois Gaming Board shortly before his term was up this summer, engaged in prohibited political activity while head of the body that regulates gambling, according a report from a state watchdog. Tracy made “loans and contributions either directly, or through his wife, to political committees” in violation of state law, the Office of Executive Inspector General said in a May 31 report that was not released until a few days ago. Tracy, whose term was set to expire July 1, resigned in mid-June, just before Gov. J.B. Pritzker signed into law a gambling expansion to be overseen by the Gaming Board. The inspector general’s office recommended Pritzker “take whatever action he deems appropriate,” but Tracy said the governor’s office never requested or demanded his resignation.

Kentucky – Jury Finds Jerry Lundergan and Dale Emmons Guilty of Campaign Finance Crimes
Louisville Courier-Journal – Joe Sonka | Published: 9/12/2019

A jury found Jerry Lundergan guilty on all 10 felony counts in the federal case accusing him of conspiring to conceal illegal corporate donations from his company to the U.S. Senate campaign of his daughter, Kentucky Secretary of State Alison Lundergan Grimes. The jury also found co-defendant Dale Emmons, a consultant paid by Lundergan’s company to provide services for Grimes’ campaign, guilty on all six felony counts. Defense attorneys for Lundergan and Emmons argued the two made innocent mistakes during that campaign and did not knowingly violate campaign finance laws, which would need to be proven in order for there to be a conspiracy.

Maryland – PAC Operator Pleads Guilty to Fraud
Politico – Maggie Severns and Derek Willis | Published: 9/18/2019

In one of the first Justice Department cases of its kind, Maryland political consultant Kelley Rogers pled guilty to wire fraud for operating multiple fraudulent PACs that raised money from donors for conservative causes but kept much of the funds for Rogers and his associates. A Politico and ProPublica story detailed how one of Rogers’ PACs, Conservative Majority Fund, took information it had collected about donors for the American Conservative Union, the operators of the annual CPAC conference, and used that information to build a PAC that preyed on those donors’ fears. While promising to fight Barack Obama and illegal immigration, internal emails and documents showed Rogers and his associates instead funneled the money back to themselves.

Massachusetts – Former State Police Union President, Lobbyist Indicted on Federal Charges
Boston Globe – Andrea Estes, Matt Rocheleau, and Danny McDonald | Published: 9/13/2019

Dana Pullman, the embattled former president of the Massachusetts State Police union, was indicted on a host of federal charges, including racketeering and conspiracy. Pullman was arrested in August and accused of taking kickbacks from the union’s former lobbyist and using union money for personal expenses including meals, travel, flowers, and gifts for a girlfriend. The lobbyist, Anne Lynch, was also arrested, accused of paying Pullman thousands of dollars in kickbacks for steering business to her firm. A federal grand jury broadened the charges, adding new tax fraud counts and a third alleged kickback scheme. Lynch allegedly paid two checks for a total of $11,250 to Pullman’s wife, allegedly for his help connecting a union lawyer with Lynch. The lawyer was seeking a marijuana dispensary license.

Michigan – Former State Rep. Todd Courser Gets Probation in Case Related to 2015 Sex Scandal
MLive.com – Julie Mack | Published: 9/16/2019

Former Michigan Rep. Todd Courser was sentenced to 12 months of probation in a criminal case stemming from a 2015 sex scandal involving his extramarital affair with then-state Rep. Cindy Gamrat. Courser agreed to a deal in which he pleaded no contest to willful neglect of duty by a public officer. The misconduct involves soliciting a state employee to send out a false email. To cover up the affair, Courser asked an aide to share an email containing outlandish allegations against him so that rumors of his affair with Gamrat would pale in comparison and not be believed.

Mississippi – Mississippi AG Investigates His Rival in Governor’s Race
The Hill – Reid Wilson | Published: 9/18/2019

Mississippi Attorney General Jim Hood, one of the last remaining Democrats holding statewide office in the Deep South, faces Lt. Gov. Tate Reeves in the battle to replace Gov. Phil Bryant. The campaign has been acrimonious since the beginning. But Hood added a new wrinkle when he released the results of a yearlong investigation into Reeves’s role in building a state-funded road connecting Reeves’s neighborhood with a nearby shopping center. The report is heavy on inference and light on conclusions. It suggests Reeves violated a provision of the state constitution meant to prevent conflicts-of-interest but in a separate report, former state Supreme Court Justice David Chandler said he did not see any evidence of wrongdoing. Reeves’s campaign and watchdogs cried foul over Hood’s report, which landed seven weeks before voters head to the polls.

Missouri – Page Signs Orders to Boost Ethical Standards of St. Louis County Executive Office
St. Louis Public Radio – Jason Rosenbaum | Published: 9/18/2019

St. Louis County Executive Sam Page signed executive orders aimed at beefing up ethics regulations. It is part of Page’s continued response to his predecessor Steve Stenger’s resignation and impending incarceration on corruption charges. The executive orders encourage disclosing public documents that are subject to open records requests and institute a code of ethics for county executive appointees. Page says appointees who do not report instances of corruption could face termination. He also wants the county council to pass a bill stopping bidders from contacting county officials while the contracting process is underway. He has dubbed that idea the “cone of silence” legislation.

Montana – Republican Lawmaker from Missoula Settles Lawsuit over Bullock Ethics Complaint
The Missoulian – David Erickson | Published: 9/18/2019

The Office of the Commissioner of Political Practices agreed to pay Montana House Majority Leader Brad Tschida almost $75,000 for attorney’s fees related to a lawsuit he filed to strike down a law keeping ethics complaints confidential. Matthew Monforton, Tschida’s attorney, said his client purposely waited until just a few months before the election to file a complaint involving Gov. Steve Bullock over an incident that happened two years prior. But then-Commissioner of Political Practices Jonathan Motl said the complaint must be kept confidential until his office ruled on its merit. The Ninth U.S. Circuit Court of Appeals struck down the law that required any ethics complaints made against a state official to be kept confidential, ruling it violated free-speech rights.

New Jersey – Murphy-Linked ‘Dark Money’ Group Reveals Donors
Burlington County Times – David Levinsky | Published: 9/16/2019

A so-called dark money group that has actively sought to build public support for New Jersey Gov. Phil Murphy’s agenda listed its donors ahead of the implementation of a new law that aims to require disclosure by all nonprofit groups engaged in political activities or lobbying. New Direction New Jersey revealed a list of 25 donors who contributed close to $6.8 million to the nonprofit 501(c)4 since its inception in 2017. Most of the money came from unions, including a $4.5 million contribution from Garden State Forward, a super PAC affiliated with the New Jersey Education Association. New Direction was formed by several members of Murphy’s gubernatorial campaign team and the nonprofit has paid for advertising and other media promoting the governor’s agenda.

New Mexico – New State Ethics Panel Selects First Executive Director
Albuquerque Journal – Dan McKay | Published: 9/13/2019

Jeremy Farris, chief legal counsel for the state Department of Finance and Administration, was chosen to be the first executive director of New Mexico’s new ethics agency. he will play a key role in shaping the establishment of the commission, which will handle allegations of wrongdoing against legislators, lobbyists, and others. Farris He and presidential candidate Pete Buttigieg were in the same Rhodes scholarship class and were roommates their second year at Oxford. The salary range for the new executive director is $125,000 to $146,000 a year.

New York – 8 Years of Trump Tax Returns Are Subpoenaed by Manhattan D.A.
MSN – William Rashbaum and Ben Protess (New York Times) | Published: 9/16/2019

State prosecutors in Manhattan subpoenaed President Trump’s accounting firm to demand eight years of his personal and corporate tax returns. The subpoena opens a new front in a wide-ranging effort to obtain copies of the president’s tax returns, which Trump initially said he would make public during the 2016 campaign but has since refused to disclose. The subpoena was issued soon after the Manhattan district attorney’s office opened a criminal investigation into the role the president and his family business played in hush-money payments made in the run-up to the election. Both Trump and his company reimbursed Michael Cohen, the president’s former lawyer and fixer, for money Cohen paid to buy the silence of Stormy Daniels, a pornographic film actress who said she had an affair with Trump.

New York – After Criticism, JCOPE Ramps Up Probe of Alleged Rape Survivor
Albany Times Union – Chris Bragg | Published: 9/12/2019

In the wake of protests at a meeting of the New York Joint Commission on Public Ethics (JCOPE), the panel escalated its probe of alleged rape victim Kat Sullivan for potential lobbying violations. Since the meeting, JCOPE staff told two vendors who aided Sullivan’s effort to pass the Child Victims Act (CVA) they could face subpoenas. JCOPE staff believes Sullivan’s advocacy for the CVA exceeded the spending threshold requiring registration as a lobbyist. Sullivan denies the charge, refuses to register, and faces fines of up to $25,000 per violation. Sullivan’s attorney, David Grandeau, contends JCOPE’s actions since the protests are retribution for embarrassing commissioners. He noted that as far as Sullivan can tell, the panel has taken little action on her case in the preceding three months.

North Dakota – North Dakota Ethics Commission Members Bring Broad Backgrounds to Board
Bismarck Tribune – Jack Dura | Published: 9/16/2019

The Ethics Commission born by voters’ approval of a 2018 initiated constitutional measure held its first, mostly organizational meetings recently in Bismarck. It is scheduled to meet monthly into spring. Its five members live in different parts of the state and have backgrounds that include legal, judicial, and governmental experience. The commission is tasked with investigating complaints against lawmakers, state elected officials, lobbyists, and candidates. It is expected to write its own rules related to lobbying, elections, transparency, and corruption. Leading the panel is Chairperson Ron Goodman, a retired judge who will serve a four-year term.

Ohio – Appearance of Conflict-of-Interest at Issue in Criminal Cases Involving Mayor Frank Jackson’s Grandson, Experts Say
Cleveland Plain Dealer – Adam Ferrise | Published: 9/13/2019

The appearance of conflicts-of-interest exist in the issues surrounding the two criminal cases involving Cleveland Mayor Frank Jackson’s grandson, according to four criminal justice experts. Those experts said there is guidance and general practices for dealing with cases where the appearance of a conflict could erode public trust in the criminal justice system. They said the mere possibility of an appearance of impropriety or special treatment in a case should automatically trigger officials to ask for a special prosecutor or an outside police agency to take over a case. Anomalies surfaced in two recent criminal investigations and how the city law department and police, both ultimately under Jackson’s direction, handled the cases.

Oklahoma – ‘If We Lie to a Legislator, We Are Dead’: Oklahoma lobbyists form association
NonDoc – Tres Savage | Published: 9/18/2019

A veteran of the contract lobbying world, former state Sen. Jim Dunlap is a driving force behind the creation of a new trade group for his profession launched this summer: The Oklahoma Society of Professional Advocates. Dunlap has invited all 400-plus registered lobbyists in Oklahoma to join, but he said the association is hoping to feature about 100 total members. One goal of the group will be to formalize a code of conduct. Dunlap also said the association will attempt to help lobbyists get to know one another better to avoid personal turmoil during the legislative session. Dunlap said a lobbyist’s main job is to “educate” people about complicated subjects, dozens of which are placed before each legislator every year.

Pennsylvania – Pa. Sen. Folmer Resigns Day After Being Charged with Possession of Child Pornography
PennLive – Jan Murphy | Published: 9/18/2019

Facing charges of possession of child pornography, Pennsylvania Sen. Mike Folmer resigned the seat he has held for 12 years. The investigation began in February after the National Center for Missing and Exploited Children received a report from Tumblr that suspected child pornography had been uploaded onto Folmer’s account. Folmer, according to charging documents, told law enforcement officers he had been dealing with personal problems and had received child pornography through his Tumblr blog.

Rhode Island – Lottery No-Bid Contract Roils Rhode Island Politics
The Hill – Reid Wilson | Published: 9/15/2019

A proposal to extend the Rhode Island Lottery’s contract with one of the state’s most significant employers is opening rifts between Democratic Party leaders as industry and watchdog groups cry foul. The state Legislature will hold a series of hearings that will likely shed light on the relationship between the state government and International Gaming Technology (IGT), one of the world’s largest gaming and lottery businesses, and the long process that led to a proposed no-bid contract that would mean hundreds of millions of dollars for the company. The contract has also bled into the political realm because IGT’s former chairperson, Donald Sweitzer, is the treasurer of the Democratic Governors Association (DGA), and a longtime political advisor to Rhode Island Gov. Gina Raimondo, who is chair of the DGA.

Texas – Texas Court Weighs Whether a 5-Year Sentence for Illegal Voting Is Legitimate or a ‘Threat to Democracy’
MSN – Deanna Paul (Washington Post) | Published: 9/11/2019

Crystal Mason was sentenced to five years in prison last year for voting illegally in the 2016 presidential election, a case that garnered national attention both for the severity of the sentence and as an illustration of Texas’s purported crackdown on voter fraud. An appeals court in the state recently weighed whether to overturn her conviction. Mason’s attorneys are arguing she cast a provisional ballot, which federal law permits, and if the state starts to criminalize this, it will undercut the entire system. They called Mason’s prosecution “a threat to democracy.”

Texas – To Rein in Cities, Texas Tries to Ban Their Lobbying
Pew Charitable Trusts – David Montgomery (Stateline) | Published: 9/17/2019

For weeks, local officials and lobbyists watched anxiously as a bill that would have severely restricted lobbying by cities, counties, and other local government entities advanced through the Texas Legislature. The bill died in the House days before the session ended. The legislation would not have affected salaried in-house government affairs employees who advocate for cities and counties. But it would have barred cities and counties from spending money on outside lobbyists. The measure is likely to return when the Legislature reconvenes in 2021, a stark illustration of the widening chasm between conservative state lawmakers and liberal city officials in Texas and many other states.

Texas – VisitDallas: Suite passes don’t have to be reported
Texas Monitor – Steve Miller | Published: 9/17/2019

Dallas’ beleaguered convention and visitors bureau now says the passes to its American Airlines Center suite the agency has given to two city council members since 2016 should not be considered gifts that need to be reported on financial disclosure forms. City Councilperson Casey Thomas, who failed to report six visits to the suite, has acknowledged he should have reported them and filed amended gift disclosures. A panel of the city’s ethics commission ruled a citizen complaint over Thomas’ failure to report the tickets will move forward to be heard by the full panel. A city ordinance requires elected officials to disclose all gifts worth more than $50 they receive from any entity that has a contract with the city. VisitDallas has no role in defining what constitutes a gift in that situation. After accepting the tickets, Thomas participated in council briefings over the future of VisitDallas.

Vermont – In Vermont, ‘Toothless Ethics Agency Serves No Purpose,’ Says New Report
VTDigger.org – Xander Landen | Published: 9/16/2019

Vermont is one of only three states with an independent ethics agency that has “limited or no power” to investigate state officials or impose sanctions, a new report said. The Coalition for Integrity, a nonprofit that promotes government transparency, found Massachusetts, Florida, and Minnesota have the strongest ethics commissions, while Vermont, Virginia, and Utah have the weakest. Vermont’s ethics commission, established in 2017, can review complaints, but does not have the power to investigate or impose sanctions. Commissions in other states can probe unethical behavior, impose fines, and in some cases, take legal action.  The coalition said a “toothless ethics agency serves no purpose.”

Washington – Tim Eyman Hit with New Sanctions, Ordered to Disclose Source of Nearly $800K in Donations
Seattle Times – David Gutman | Published: 9/13/2019

After spending more than 18 months refusing to disclose information about his finances and his business in the long-running campaign finance lawsuit against him, anti-tax activist Tim Eyman was hit with further sanctions as a Thurston County judge ruled he must disclose the source of nearly $800,000 in contributions he has collected since 2012. It is the latest in a series of setbacks for Eyman in an investigation that alleges his two-decade career as a serial initiative filer has coincided with a scheme to launder political donations through a complex web of political committees, businesses, and kickbacks to flout campaign finance laws and enrich himself.

Washington DC – Metro Inspector General to Investigate Jack Evans Ethics Probe at Congress’s Request
Washington Post – Robert McCartney | Published: 9/13/2019

The Washington Metropolitan Area Transit Authority’s (Metro) inspector general will investigate the agency’s ethics probe of former board Chairperson Jack Evans at the request of the U.S. House Oversight Committee. The inquiry is expected to look at evidence that Evans and former Metro board member Corbett Price sought to impede the investigation of Evans in the spring by the Metro board’s ethics committee. The probe by Metro Inspector General Geoffrey Cherrington adds yet another investigation to ones already underway into Evans. It appears to ensure that Price’s conduct also will get a closer look. The inquiries focus in part on whether Evans used official positions to help his personal legal and consulting business.

Wyoming – 307 Politics: Debating the merits of a Wyoming ethics commission, Cheney at war and other news
Casper Star Tribune – Nick Reynolds | Published: 9/16/2019

The Coalition for Integrity releases an annual “S.W.A.M.P. Index,” a comprehensive review of which state governments are most susceptible to foul play. The index analyzes how state ethics agencies implement their enforcement and sanctioning powers through enforcement statistics and a comparative scorecard, which ranks states and their ethics agencies “on the transparency and availability of information regarding their enforcement actions.” Wyoming does not make an appearance on the report, with the state standing as one of only five in the country lacking a proper ethics agency. Coalition for Integrity President Shruti Shah warns that patchwork methods of enforcement as in Wyoming can oftentimes be ineffective.

Wyoming – Unannounced Meeting with Lobbying Group Did Not Violate Open Meetings Law, Expert Says
Casper Star Tribune – Nick Reynolds | Published: 9/18/2019

An unannounced meeting between Wyoming lawmakers and a local special interest group held during the recess of a recent committee meeting did not violate any open meetings laws, an expert public records law said. Many who stumbled into the lunch recess of a meeting of the Joint Committee on Corporations, Elections, and Political Subdivisions were caught by surprise to see a quorum assembled and meeting with a special interest group that advocates for a private-sector approach to the housing market and the preservation of private property rights. However bad the optics were, the meeting was appropriate because members of the Wyoming Legislature are exempt from many facets of the law.

Campaign Finance

Maryland: “Maryland Political Consultant Pleads Guilty in Fraud Scheme Involving ‘Scam PACs’” by Martin Weil for Washington Post

Elections

Arizona: “Ballot Proposal Seeks to Block Lawmakers from Voting on Issues They Benefit From” by Howard Fischer (Capitol News Services) for Arizona Daily Star

Ethics

Mississippi: “Mississippi AG Investigates His Rival in Governor’s Race” by Reid Wilson for The Hill

Pennsylvania: “Pa. Sen. Folmer Resigns Day After Being Charged with Possession of Child Pornography” by Jan Murphy for PennLive

Texas: “VisitDallas: Suite passes don’t have to be reported” by Steve Miller for Texas Monitor

Wyoming: “307 Politics: Debating the merits of a Wyoming ethics commission, Cheney at war and other news” by Nick Reynolds for Casper Star Tribune

Lobbying

National: “Lobbyist Registry May Become Available This Week” by Giovanna Garolfalo for Weekly Journal

National: “Trump Outpaces Obama, Bush in Naming Ex-Lobbyists to Cabinet” by Richard Lardner for AP News

Oklahoma: “‘If We Lie to a Legislator, We Are Dead’: Oklahoma lobbyists form association” by Tres Savage for NonDoc

The California Legislature adjourned the 2019 session on September 13.

Campaign Finance Bills Passed

The legislature passed several campaign finance bills during the session.

Assembly Bill 220 prohibits the use of campaign funds to pay for professional services not directly related to a political, legislative, or governmental purpose. The bill also authorizes the use of campaign funds to pay for child care expenses resulting from a candidate or officeholder engaging in campaign activities or performing official duties.

Assembly Bill 571 makes a technical, nonsubstantive change to a provision of the Political Reform Act of 1974. The provision prohibits candidates for elective state office or committees controlled by that candidate from making a contribution to another candidate for elective state office in excess of $3,000.

Senate Bill 71 prohibits the expenditure of funds in a legal defense fund campaign account to pay or reimburse a candidate or elected officer for attorney’s fees or other legal costs.

The bill also prohibits the use of campaign funds for fines, penalties, judgments, or settlements, except as specified.

Electioneering Bill Passed

Assembly Bill 201 broadens the definition of mass mailing to include campaign-related mass texting. Mass text messages will be required to include the name or image of a candidate or refer to a ballot measure.

Lobbying Bill Passed

Assembly Bill 902 codifies current regulations into law, including regulations regarding filing deadlines, bookkeeping, and lobbyist registration.

The last day for the governor to sign or veto bills passed by the legislature during the 2019 legislative session is October 13.

Campaign Finance

New Jersey: “Murphy-Linked ‘Dark Money’ Group Reveals Donors” by David Levinsky for Burlington County Times

Washington: “Tim Eyman Hit with New Sanctions, Ordered to Disclose Source of Nearly $800K in Donations” by David Gutman for Seattle Times

Ethics

National: “Elaine Chao Investigated by House Panel for Possible Conflicts” by Eric Lipton and Michael Forsythe (New York Times) for ENM News

Michigan: “Former State Rep. Todd Courser Gets Probation in Case Related to 2015 Sex Scandal” by Julie Mack for MLive.com

New York: “8 Years of Trump Tax Returns Are Subpoenaed by Manhattan D.A.” by William Rashbaum and Ben Protess (New York Times) for MSN

Vermont: “In Vermont, ‘Toothless Ethics Agency Serves No Purpose,’ Says New Report” by Xander Landen for VTDigger.org

Lobbying

National: “Elizabeth Warren’s K Street Overhaul” by Kate Ackley for Roll Call

Texas: “To Rein in Cities, Texas Tries to Ban Their Lobbying” by David Montgomery (Stateline) for Pew Charitable Trusts

Campaign Finance

National: “Bid to Unmask Dark Money Donor Lands in DC Circuit” by Megan Mineiro for Courthouse News Service

National: “Andrew Yang Said He Would Give 10 People $1,000 Each Month. Is That Legal?” by Matt Stevens (New York Times) for MSN

Ethics

Delaware: “Supreme Court Says Judges Are Above Politics. It May Hear a Case Testing That View.” by Adam Liptak (New York Times) for ENM News

North Dakota: “North Dakota Ethics Commission Members Bring Broad Backgrounds to Board” by Jack Dura for Bismarck Tribune

Ohio: “Appearance of Conflict-of-Interest at Issue in Criminal Cases Involving Mayor Frank Jackson’s Grandson, Experts Say” by Adam Ferrise for Cleveland Plain Dealer

Rhode Island: “Lottery No-Bid Contract Roils Rhode Island Politics” by Reid Wilson for The Hill

Washington DC: “Metro Inspector General to Investigate Jack Evans Ethics Probe at Congress’s Request” by Robert McCartney for Washington Post

Lobbying

Illinois: “Ethics Board Levels $25K Fine on Political Consultant Recorded Allegedly Arranging Viagra, Sexual Services for Ex-Chicago Alderman” by Juan Perez Jr. and Jason Meisner for Chicago Tribune

 

Campaign Finance

Florida: “Ron DeSantis’ Political Team Planned $25K Golf Games, $250K ‘Intimate Gatherings,’ Memos Say” by Steve Contorno for Tampa Bay Times

Kentucky: “Jury Finds Jerry Lundergan and Dale Emmons Guilty of Campaign Finance Crimes” by Joe Sonka for Louisville Courier-Journal

Elections

Texas: “Texas Court Weighs Whether a 5-Year Sentence for Illegal Voting Is Legitimate or a ‘Threat to Democracy’” by Deanna Paul (Washington Post) for MSN

Ethics

National: “Appeals Court Revives Foreign Corruption Suit Against Trump” by Josh Gerstein for Politico

National: “Calls for Kavanaugh’s Impeachment Come Amid New Misconduct Allegations” by Sandra Garcia (New York Times) for MSN

New Mexico: “New State Ethics Panel Selects First Executive Director” by Dan McKay for Albuquerque Journal

Lobbying

Massachusetts: “Former State Police Union President, Lobbyist Indicted on Federal Charges” by Andrea Estes, Matt Rocheleau, and Danny McDonald for Boston Globe

New York: “After Criticism, JCOPE Ramps Up Probe of Alleged Rape Survivor” by Chris Bragg for Albany Times Union

National/Federal

At the Bedraggled FEC, a Clean Slate of Leaders? The First African-American Commissioner?
Center for Public Integrity – Dave Levinthal | Published: 9/11/2019

The FEC no longer has enough members to conduct high-level business. The U.S. Senate and President Trump could easily appoint new commissioners and soon end the agency’s involuntary trip through limbo. Senate Democrats have recommended Shana Broussard, an attorney and executive assistant to longtime Commissioner Steven Walther, to Trump for nomination. Meanwhile, the Republican-controlled Senate could at any moment consider Trump’s lone FEC nominee to date, Trey Trainor, who has languished for nearly two years without even a confirmation hearing. But there is disagreement among Senate Republicans and Democrats, as well as the White House, on how to proceed. FEC Chairperson Ellen Weintraub said the agency’s more than 300 employees are attending to their work the best they can.

FEMA Officials Accused of Bribery, Fraud in Hurricane Maria Relief
MSN – Rick Jarvis (USA Today) | Published: 9/10/2019

Two former officials of the Federal Emergency Management Agency (FEMA) and the former president of an energy contractor were arrested, accused of bribery and wire fraud while trying to restore electricity to Puerto Rico in the wake of Hurricane Maria. Prosecutors said the president of Cobra Acquisitions, Donald Keith Ellison, gave FEMA’s deputy regional director airline flights, hotel accommodations, personal security services, and the use of a credit card. In return, Ahsha Nateef Tribble “used any opportunity she had to benefit Cobra,” said U.S. Attorney Rosa Emilia Rodríguez, including accelerating payments to the company and pressuring power authority officials to award it contracts.

Harsh Spotlight on Trump Donors Raises Disclosure Questions
Danbury News Times – Michelle Ye Hee Lee (Washington Post) | Published: 9/10/2019

Critics of President Trump are taking aim at his campaign donors, who have become the subject of social media attacks from liberals when their identities become public. A large amount of information about donors is available publicly, a result of laws intended to serve as a check on corrupting influences on politicians. Campaigns and committees are required to turn over the name, address, job title, employer, and donation amount of anyone giving at least $200. The information is published on the FEC’s website. Some transparency advocates worry the increasing attacks on donors could spark a backlash against the disclosure of information. They fear the attacks will discourage voters from giving or steer them into contributing to political nonprofit groups that are not required to disclose their donors.

How Elizabeth Warren Raised Big Money Before She Denounced Big Money
MSN – Shane Goldmacher (New York Times) | Published: 9/9/2019

Early this year, U.S. Sen. Elizabeth Warren vowed not to attend private fundraisers or call rich donors anymore. Admirers and activists praised her stand, but few noted the fact that she had built a financial cushion by pocketing big checks the years before. The open secret of Warren’s campaign is that her big-money fundraising through 2018 helped lay the foundation for her anti-big-money run for the presidency. Last winter and spring, she transferred $10.4 million in leftover funds from her 2018 Senate campaign to underwrite her 2020 run, a portion of which was raised from the same donor class she is now running against. As Warren has risen in the polls on her populist and anti-corruption message, some donors and, privately, opponents are chafing at her campaign’s purity claims of being “100 percent grassroots funded.”

IRS Issues Proposed Rules to Reduce Donor Disclosure Requirements Following Court Ruling
The Hill – Naomi Jagoda | Published: 9/6/2019

The Treasury Department and IRS issued proposed rules to reduce donor disclosure requirements for certain tax-exempt groups after a federal judge set aside guidance the agencies had previously released on the topic because it had not gone through a notice and comment period. Under the proposed rules, certain tax-exempt groups – including groups such as the National Rifle Association, as well as labor unions and business leagues – would no longer be required to provide the names and addresses of major donors on annual tax forms. Charities that have tax-exempt status under section 501(c)(3) of the tax code, as well as political organizations, would still be required to report the names and addresses of donors.

Mayors Are Harassed and Threatened, But Just How Often?
Governing – Mike Maciag | Published: 9/1/2019

Demeaning comments, harassment and, less commonly, threats of violence all come with the job of being a mayor. A new national survey assesses how frequently mayors experience various forms of abuse. The survey, the basis of a study published in the journal State and Local Government Review, finds most mayors contend with verbal hostility or physical intimidation at rates above those of the general workforce. Disrespectful comments or images on social media were by far the most frequent means of abuse. More serious acts of violence were far less common. About 11 percent of mayors reported property damage.

Nevada, SC, Kansas GOP Drop Presidential Nomination Votes
AP News – Meg Kinnard | Published: 9/7/2019

Republican leaders in Nevada, South Carolina, and Kansas have voted to scrap their presidential nominating contests in 2020, erecting more hurdles for the long-shot candidates challenging President Trump. Primary challenges to incumbents are rarely successful, and Trump’s poll numbers among Republican voters have proved resilient. Nonetheless, Trump aides are looking to prevent a repeat of the convention discord that highlighted the electoral weaknesses of Presidents George H.W. Bush and Jimmy Carter in their failed reelection campaigns.

Redistricting Fights Rage with Future of Congress at Stake
The Hill – Reid Wilson | Published: 9/6/2019

Strategists and observers who track state legislative races say tensions are already running at election-year levels, a reflection of the unusually high stakes in contests that immediately precede the decennial redistricting cycle. The difference between just a handful of local elections across the country could mean a long-term shift in partisan control of Congress. If one party makes big gains in state Legislatures, they would have the power to use the decennial reapportionment and redistricting process to substantially alter the partisan makeup of Congress. The high stakes in states across the country are reminiscent of the 2010 election, which became a Republican wave that swept the GOP to power and handed them control of the redistricting process.

Retiring Lawmakers Will Face Tough Market on K Street
Roll Call – Kate Ackley | Published: 9/9/2019

K Street recruiters are poring over the list of 21, and counting, lawmakers planning to exit Congress, but the lobbying sector may offer a shrinking supply of big-money gigs heading into the 2020 elections. As more House members and senators consider making their escape from Capitol Hill, the realities of the K Street economy and the “revolving door” will be among their considerations, say insiders at lobbying firms and headhunters. Those who make hiring decisions on K Street say ex-lawmakers can sometimes struggle in the lobbying sector where they no longer receive the trappings that come with elective office, such as a team of staff members. Many former members also balk, at least initially, at the idea of registering as a federal lobbyist or foreign agent, setting out limitations that firms find increasingly frustrating. In most cases, it is the congressional staff members that K Street really clamors for.

Trump Had Deal with Scotland Airport That Sent Flight Crews to His Resort
MSN – Eric Lipton (New York Times) | Published: 9/9/2019

President Trump sought to tamp down a growing controversy over a stay at his golf resort in Scotland by U.S. military personnel who were traveling through the local airport in March. He said he was not involved in any decision to put an Air Force flight crew at the resort, known as Trump Turnberry. But documents obtained from Scottish government agencies show the Trump Organization, and Trump himself, played a direct role in setting up an arrangement between the Turnberry resort and officials at Glasgow Prestwick Airport. The government records show the Trump organization, starting in 2014, entered a partnership with the airport to try to increase private and commercial air traffic to the region.

From the States and Municipalities

Arizona – Some Push for Scottsdale to End Prayer at Council Meetings Amid Legal Showdown with Satanists
Arizona Republic – Lorraine Lonhi | Published: 9/10/2019

A Scottsdale resident and activists petitioned a city commission to recommend replacing invocations with moments of silence at city council meetings. The move comes as Scottsdale and Satanists are locked in a legal battle over the city’s decision three years ago to block Satanists from leading a council meeting invocation. The Satanic Temple, an international Satanist group, has been asking city councils across the country to lead their invocations for several years. Some cities, such as Pensacola, Florida, allowed Satanists to give the invocations, but faced public backlash. Scottsdale resident Sandy Schenkat said she has asked the Human Relations Commission three times this year to recommend that council adopt a moment of silence in place of invocations, but her requests have gone ignored.

California – Ex-Palm Springs Mayor Steve Pougnet, Developers Due in Court After Grand Jury Indictment
Palm Springs Desert Sun – Christopher Damien | Published: 9/11/2019

Former Palm Springs Mayor Steve Pougnet and developers John Wessman and Richard Meaney will be arraigned following their indictments in connection with a long-running corruption case. More than four years have passed since agents from the FBI, IRS, and the Riverside County district attorney’s office raided Palm Springs City Hall. In bringing charges against the three men in 2017, the district attorney alleged Pougnet accepted bribes in exchange for city council votes and contracts in favor of their projects. The three have previously pleaded not guilty. If found guilty, Pougnet could be sentenced to as much as 19 years in prison, while the developers, if convicted, could face up to 12 years in prison each.

California – Insider Lunch and a London Party: California Democrat cozied up to industry he regulates
MSN – Hannah Wiley (Sacramento Bee) | Published: 9/10/2019

Three months after taking office, California Insurance Commissioner Ricardo Lara scheduled a lunch with insurance company executives with a pending matter before his department. A memo to Lara said the meeting had a specific purpose: “Relationship Building to benefit Ricardo Lara for Insurance Commissioner 2022.” He pledged not to take money from the insurance industry as he ran for the post but broke his promise this year by accepting more than $50,000 from insurance representatives and their spouses. Some of the money came from donors who ties to one of the companies scheduled to be represented at the lunch. Social media posts show Lara also counts insurance lobbyists among his friends. He partied with a Farmers Insurance lobbyist on New Year’s Eve a week before his inauguration.

California – Insurance Commissioner Charging Rent for Second Residence to Taxpayers
Politico – Carla Marinucci and Angela Hart | Published: 9/5/2019

California Insurance Commissioner Ricardo Lara has stuck taxpayers with thousands of dollars in bills to cover the cost of renting an apartment in Sacramento while he maintains his primary residence in Los Angeles, a break from other statewide elected officials that is alarming ethics watchdogs. Lara is already under scrutiny for his campaign fundraising and perceived coziness with the insurance industry. Lara spokesperson Michael Soller said Department of Insurance legal counsel concluded Lara’s rental expenses comply with state law because he only bills taxpayers for days spent in Sacramento. Soller declined to provide the legal memo or the name of the lawyer.

Colorado – Chief Storytellers: Community engagement or PR?
Governing – Graham Vyse | Published: 8/29/2019

It looked like a conventional public meeting as a city employee in Denver stood before half a dozen people in a community center. Yet this was not a typical community forum, and Rowena Alegría was not a typical city employee. “I am the chief storyteller for the city and county of Denver,” she told the group, and she had come for one of her regular “storytelling labs.” They are a chance for residents to record personal stories about their city, using text, audio, and video to help local government preserve community history. Denver’s alternative paper Westword called into question how the chief storyteller “just happens to be a former Mayor Michael] Hancock aide,” raising concerns that she was running “a taxpayer-funded office designed to polish PR for Denver.” But Alegría is quick to say her storytelling is “community engagement, not PR.”

Connecticut – State Employee Fined for Hiring Daughter for Temporary Summer Job
Hartford Courant – Russell Blair | Published: 9/9/2019

A former Connecticut Department of Public Health (DPH) employee was fined $2,500 for using her position to hire her daughter for a temporary summer job and failing to disclose the conflict-of-interest. Andrea Lombard was an epidemiologist in the hepatitis C program at DPH. In the summer of 2018, DPH was looking to fill administrative assistant positions in the program and hired an outside vendor to help with process. Lombard’s daughter became a candidate for one of those positions and she personally selected her daughter to fill one of the positions. While her daughter was employed, Lombard directly supervised her, including assigning and evaluating her work, approving her timecards, and approving overtime.

Florida – Broward Lawmaker in Line to Lead Senate Democrats Is in Relationship with Lobbyist Paid to Influence Florida Legislature
South Florida Sun Sentinel – Anthony Man | Published: 9/9/2019

Florida Sen. Gary Farmer, chosen by his colleagues to be the Democratic Party leader after the 2020 elections, recently told them he has been involved with a woman who lobbies the state Legislature. Florida law and Senate rules do not ban such relationships. A senator cannot “vote on any matter that the officer knows would inure to his or her special private gain or loss.” Senate rules require disclosure of a conflict if the special private gain or loss applies to an immediate family member or business associate.

Florida – NRA’s Marion Hammer Got Illegal Loans from Nonprofit She Runs, Unified Sportsmen of Florida
Florida Bulldog – Dan Christensen | Published: 9/6/2019

National Rifle Association (NRA) lobbyist Marion Hammer obtained several apparently illegal loans over the years from Unified Sportsmen of Florida, the Tallahassee nonprofit she founded and runs. The most recent loan in 2017, for $200,000, was given to Hammer, who earns $110,000-a-year as the group’s executive director, so she could “refinance and purchase” real estate, according to Unified Sportsmen’s regulatory filings. Florida law prohibits not-for-profit corporations like Unified Sportsmen from loaning money to their directors or officers. And while Unified Sportsmen solicits contributions from the public, the state Department of Agriculture and Consumer Services has not made it register, disclose certain information, or pay fees as the law requires of nonprofits.

Illinois – Watchdog Accuses County Clerk Karen Yarbrough of Running ‘Illegal Patronage’ Operation, Wants Court Oversight
Chicago Tribune – Ray Long | Published: 9/11/2019

Less than a year into office, Cook County Clerk Karen Yarbrough faces potential federal court oversight of hiring amid a watchdog’s accusations that she is “running an illegal patronage employment system.” Veteran anti-patronage attorney Michael Shakman said in a new legal filing that Yarbrough has put the politically connected into jobs that are supposed to be free from such influence, asked her employees for campaign contributions on their private cellphones and transferred certain supervisors to far-flung offices in hopes they would quit. Yarbrough, who was under federal court oversight in her previous job as recorder of deeds, called Shakman’s latest allegations “preposterous.”

Iowa – A Family Affair: As their parents campaign in Iowa, kids of 2020 candidates get a taste of the trail
Des Moines Register – Ian Richardson | Published: 9/5/2019

As 2020 presidential hopefuls traversed Iowa this summer to woo voters, their families have often tagged along for the ride. Candidates say bringing their families along helps them spend more time with them during their grueling campaign schedules. It also gives Iowans a more up-close look at the candidates’ personal lives, which can make them more relatable in a process that puts a high value on person-to-person interaction. Even when their kids are not around, the children of candidates make frequent appearances in their speeches, with candidates sharing the impact they have made on their policies like health care and childcare.

Kentucky – Gov. Bevin Asks Kentucky Supreme Court to Remove Judge from Case over Facebook ‘Like’
Louisville Courier-Journal – Phillip Bailey | Published: 9/11/2019

Gov. Matt Bevin wants the Kentucky Supreme Court to remove Franklin Circuit Court Judge Phillip Shepherd from hearing the teacher “sickout” lawsuit, saying he is too biased to preside over the case. The governor’s legal team says the integrity of the state’s judicial branch is on the line and requests Chief Justice John Minton appoint a special judge. The Bevin administration points to an August Facebook post Shepherd “liked” that praises campaign volunteers for Andy Beshear, who is running against Bevin in the fall election. Bevin used Twitter to slam Shepherd for “his blatant partisan support for Democrats.” Shepherd declined to remove himself from the case, saying he had liked posts from Republicans and was supporting the political process in general.

Massachusetts – Mayor Charged with Taking Bribes to Help Pot Businesses
AP News – Philip Marcelo | Published: 9/6/2019

Fall River Mayor Jasiel Correia was arrested on charges he conspired to extort hundreds of thousands of dollars from companies seeking to operate marijuana businesses. Correia brazenly accepted cash bribes in exchange for issuing official letters needed to obtain a license to set up a pot business, authorities alleged. They said at least four business owners paid a total of $600,000 in bribes to the mayor, and he used the money to support a lavish lifestyle and cover mounting legal bills. Correia was already facing charges on accusations he stole investor funds. He has pleaded not guilty. The latest investigation, which also involved agents from the FBI and IRS, highlighted the potential for abuse in Massachusetts’ nascent retail marijuana industry, authorities said.

Minnesota – DFL Lawmaker Resigns from University of Minnesota Post After Questions About Hiring
Minneapolis Star Tribune – Torey Van Oot | Published: 9/11/2019

State Rep. Jamie Long announced he is resigning from a paid fellowship at the University of Minnesota after Republicans raised questions about preferential treatment in filling the post. Long accepted a seven-month research fellowship at the Institute on the Environment’s Energy Transition Lab in July. The $50,000 temporary role was set to end just after the Legislature returns to work in February. In a statement announcing his resignation, Long, an attorney, said he was “honored” to accept the job after “a competitive public hiring process.” He cited his long history of working on environmental and climate issues. But e-mails and internal documents show Long and Ellen Anderson, a former state senator now at the helm of the Energy Transition Lab, discussed creating the position months before it was publicly posted.

Missouri – Parson’s Longtime Friend Is a Lobbyist, and Their Money Ties Could Cloud Governor’s Bid
Kansas City Star – Jason Hancock and Crystal Thomas | Published: 9/8/2019

As Missouri Gov. Mike Parson kicks off his quest to win a full term as governor, his long-standing friendship and political partnership with lawmaker-turned-lobbyist Steve Tilley is once again under the microscope. So far this year, a quarter of every dollar raised to elect Parson governor in 2020 is connected to Tilley. A large part of that money has come from lobbying clients engaged in industries regulated by the state agencies Parson oversees, ranging from gaming to medical marijuana to low-income housing tax credits. Before Parson took over as governor in June 2018, Tilley had 25 lobbying clients. In the year since Parson took the oath of office, that number has ballooned to more than 70.

Missouri – Stenger’s Former Right-Hand Man Gets 15 Months in Prison for His Role in Pay-To-Play Scheme
St. Louis Public Radio – Rachel Lippmann | Published: 9/6/2019

William Miller, the chief of staff to disgraced former St. Louis County Executive Steve Stenger, was sentenced to 15 months in prison for working to make sure a campaign donor to Stenger got a lobbying contract. Miller had pleaded guilty to aiding and abetting bribery. The prosecution’s sentencing memo outlines several instances in which Miller used his clout as chief of staff to bully and threaten lower-level employees into doing Stenger’s bidding. By contrast, Miller’s attorney, Larry Hale, portrayed Miller as someone who was simply following the orders of Stenger, a “vindictive person known to threaten to terminate or otherwise punish those who did not follow his directives.”

Montana – Court Strikes Down Montana Law Barring Political Robocalls
AP News – Matt Volz | Published: 9/10/2019

A three-judge panel of the Ninth U.S. Circuit Court of Appeals ruled Montana cannot ban political robocalls based on their content alone, marking the latest in a string of court decisions against states that attempt to restrict automated phone calls promoting political campaigns. The judges said Montana’s law is a violation of the First Amendment’s free-speech protections. The court has previously upheld other state laws that regulate robocalls, such as those that aim to protect consumers from scams, but those laws were based on how robocalls are made and not on what they say, the judges said.

Montana – Montana Ethics Chief Recommends Bringing Lobbying Code ‘Into the 21st Century’
Bozeman Daily Chronicle – Eric Dietrich (Montana Free Press) | Published: 9/5/2019

Montana Commissioner of Political Practices Jeff Mangan told a legislative committee that lawmakers should consider updating state lobbying rules to bring them “into the 21st century” by, for instance, requiring electronic filing for lobbying reports and clarifying whether regulations apply to grassroots lobbying like social media campaigns. “You will find the word ‘telegraph’ in the current code as far as what lobbyists should be reporting, telephone and telegraph expenses; you won’t find the word ‘internet’ in there,” Mangan said. Lawmakers on the State Administration and Veterans’ Affairs Committee voiced concern about the cost of administering new lobbying regulations but voted to study the issue and potentially draft bills for consideration in the 2021 Legislature.

New Jersey – ACLU Files Suit in Favor of ‘Dark Money,’ Says Donors Should Be Able to Give Money Anonymously
Newark Star Ledger – Ted Sherman (NJ Advance Media) | Published: 9/10/2019

The American Civil Liberties Union (ACLU) went to federal court seeking to overturn a law that would require political organizations that accept so-called dark money in New Jersey to disclose their donors. The ACLU said the law violates the First and Fourteenth Amendments and called for an order to restrain the state from enforcing the act. Gov. Phil Murphy signed the bill into law despite his reservations over its constitutionality. The law requires independent expenditure commissioners to publicly disclose donors contributing more than $10,000 to the organization and bar any person who chairs a political party committee or a legislative leadership committee from serving as that committee’s chairperson or treasurer. The ACLU argued it would fall under the restrictions, and said because it often works on controversial issues of public interest, many of its donors avail themselves of anonymity.

New York – Alleged Rape Victim’s Case Shakes Up JCOPE
Albany Times Union – Chris Bragg | Published: 9/10/2019

The normally staid monthly meeting of the New York Joint Commission on Public Ethics (JCOPE) featured a first: two women dressed in red cloaks and white wimples stationed outside the agency’s offices, reading a satiric children’s book detailing the panel’s alleged failings. The protest, with costumes inspired by the novel “The Handmaid’s Tale,” was organized by Kat Sullivan, an alleged rape survivor who has been targeted for possible lobbying violations while advocating for passage of the Child Victim’s Act. Sullivan took out ads on billboards criticizing the state’s molestation laws. JCOPE determined the billboards amounted to lobbying and threatened Sullivan with fines if she refused to pay the registration fee. Sullivan’s attorney went before JCOPE to demand that it drop the case against Sullivan since she did not spend enough on the billboards to qualify as a lobbyist under state law.

New York – Marijuana Legalization Opponent Directed to Identify Donors
Albany Times Union – David Lombardo | Published: 9/10/2019

The Joint Commission on Public Ethics (JCOPE) denied a request from the New York chapter of Smart Approaches to Marijuana (SAM-NY) to keep its donors private. SAM-NY contended it should be exempt from the state’s semi-annual disclosure because its supporters would be subject to harassment and economic reprisal if they were identified. New York law has a blanket disclosure exemption for charitable organizations engaged in lobbying, including the pro-legalization Drug Policy Alliance. JCOPE has denied disclosure exemption requests in the past from the New York Civil Liberties Union, New Yorkers for Constitutional Freedoms, and Family Planning Advocates of New York, only to have those decisions overturned by a judicial hearing officer, who described the rulings as “clearly erroneous.”

North Carolina – Dan Bishop, North Carolina Republican, Wins Special Election
MSN – Richard Fausset and Jonathan Martin (New York Times) | Published: 9/10/2019

Dan Bishop, a Republican state senator, scored a narrow victory in a special U.S. House election in North Carolina that demonstrated President Trump’s appeal with his political base but also highlighted his party’s deepening unpopularity with suburban voters. Bishop defeated Dan McCready, a moderate Democrat, by two percentage points in a district Trump carried by nearly 12 points in 2016. The fight for the Ninth Congressional District also brought to an end a tortured political drama: The 2018 midterm race for the seat, in which McCready barely lost against a different Republican, was in question for months because of evidence of election fraud on the GOP side. The election was finally thrown out, an embarrassing conclusion for state Republicans who had carved the lines of the deeply red district.

North Carolina – House Overrides Budget Veto in Surprise Vote with Almost Half of Lawmakers Absent
Raleigh News and Observer – Dawn Baumgartner Vaughan, Loren Horsch, and Paul Specht | Published: 9/11/2019

Republican lawmakers in North Carolina abruptly voted to override Democratic Gov. Roy Cooper’s veto of the state budget, sparking chaos in the chamber by bypassing Democratic lawmakers. Democrats said they did not expect a voting session that morning. Only 12 Democrats were present, and only nine voted, with several not even at their seats, party leader said. Cooper accused Republicans of pulling “their most deceptive stunt yet” at a time when many North Carolinians were focused on honoring those killed in the September 11 attacks, though it was not clear how many lawmakers may have been attending memorials. The override is not complete as the Senate still must hold a vote on the issue, but Republicans there need only one Democrat to join them to secure victory.

North Dakota – Little to No Business for North Dakota State Ethics Boards in Recent Years
Bismarck Tribune – Jack Dura | Published: 9/11/2019

North Dakota’s new Ethics Commission is preparing to meet for the first time. Other state ethics have taken up little to no business in recent years. State lawmakers have an ethics committee, but there is no indication it has ever met. The new five-member commission is tasked with investigating ethics complaints against elected state officials, candidates for office, and lobbyists, and is expected to write its own administrative rules. Senate Majority Leader Rich Wardner said the lack of ethics meetings and complaints indicates nothing has risen to the level of a perceived violation. “I think overall most legislators pull a pretty fine line and stay away from stuff like that, and so I appreciate that as leader,” Wardner said.

Oregon – Campaign Money Limits in 2020? Oregon Supreme Court Leaves Possibility Open
Portland Oregonian – Rob Davis | Published: 9/5/2019

The Oregon Supreme Court rejected a request to delay arguments in a major campaign finance case, a decision that leaves open the possibility that political donations could be capped in statewide races next year, even though lawmakers have stumbled in their own attempts to set them. Business groups wanted the court to postpone hearing a case to decide the legality of limits adopted by Multnomah County voters in 2016. The groups argued it was inappropriate for the court to rule on limits with voters set to do the same thing next November. Supporters of limits characterized the request as an attempt to allow unlimited contributions to dominate another election cycle. Chief Justice Martha Walters denied the industry groups’ request without specifying why.

Oregon – Oregon Open Records Bill Dies After Governor’s Staff Privately Contradicts Her Transparency Pledge, Documents Show
Portland Oregonian – Molly Young | Published: 9/11/2019

Top staffers for Gov. Kate Brown privately worked against a pro-transparency bill that ultimately failed in June, according to records released by Oregon’s public records advocate in the wake of her resignation. Brown has pledged to increase transparency under her watch since she was sworn in as governor in 2015. Yet memos and emails show staffers and lobbyists working on her behalf opposed a proposal to make state agencies track and disclose information about records requests they receive from the public. The documents say Brown’s staffers told public records advocate Ginger McCall her work to support the bill contradicted the governor’s interests and was a bad idea. Then, by action or inaction, Brown’s office got in the way of the bill’s progress while publicly maintaining its support for transparency and the concept of government accountability.

Pennsylvania – Deal to End Ex-Philly Deputy Mayor’s Bribery Case with One-Year Sentence Crumbles in Court
Philadelphia Inquirer – Jeremy Roebuck | Published: 9/5/2019

After his conviction for bribing then-U.S. Rep. Chaka Fattah was overturned, former Philadelphia Deputy Mayor Herbert Vederman made a deal with the Justice Department that would send him to prison for only one year – half of what he originally had received – instead of risking a second trial. But U.S. District Court Judge Harvey Bartle III had other ideas. Calling the agreement “far too lenient” and “not just,” the judge rejected the proposal and ordered Vederman, whom prosecutors once described as Fattah’s “human ATM machine,” to spend two years in prison. The turn of events capped what already had been an unusual proceeding that brought into the open rarely seen discord between Justice Department officials in Washington, D.C. and their local counterparts.

Rhode Island – Rhode Island House Employee Has Sexual Assault Conviction, Records Show
Boston Globe – Edward Fitzpatrick | Published: 9/9/2019

A former police sergeant who was convicted of committing sexual assault while in uniform in the 1980s has been employed by the Rhode Island Legislature for more than a decade. Michael Burke, a former North Kingstown police officer who served prison time on two counts of first-degree sexual assault, has worked as “manager of House operations” since 2007 but is now out on workers’ compensation. The House speaker when Burke was hired, William Murphy, said Burke was recommended to him by a former state representative, whom he declined to identify, and he interviewed Burke. “I gave him a second chance,” Murphy said. “When I was speaker, he always comported himself as a gentleman in the statehouse. I never received any complaint about him. … I am glad I gave Mr. Burke a second chance.”

Tennessee – Rep. Andrew Farmer Changes Billboards Over Concerns He Used His Elected Office to Promote Private Business
Knoxville News Sentinel – Joel Ebert (The Tennessean) | Published: 9/9/2019

Earlier this year, Rep. Andrew Farmer changed billboards for his personal business over concerns from residents he was using his elected office to benefit his law firm. Farmer has several billboards in East Tennessee for his law firm, which provides criminal defense and personal injury services.  One of the billboards read, “Who better to argue the law than an actual lawmaker?” Paying for the billboards for his personal business out of campaign money would be illegal. Farmer said he does not use his position as a lawmaker to help attract more clients or influence the outcome of cases.

Tennessee – Tennessee Campaign Finance Officials Urge Revamp of Website, More Auditors to Scrutinize Lawmaker Spending
The Tennessean – Joel Ebert | Published: 9/11/2019

State watchdogs want to revamp Tennessee’s campaign finance reporting website and hire additional auditors. The Registry of Election Finance approved a plan to start talks with the secretary of state’s office about updating its website, which provides the public and the media a view into the activities of candidates. After discovering the Bureau of Ethics and Campaign Finance had more than $1 million available in reserves, registry board member Tom Lawless suggested an update to the state’s website is necessary. Registry Auditor Jay Moeck said he is currently unable to fulfill 18 outstanding audits before the end of the year. He was tasked with coming up with hiring recommendations prior to the panel’s November meeting.

Texas – New Disclosures Show Texas Sen. Royce West Making Big Bucks from Government Contracts
Texas Tribune – Jay Root | Published: 9/5/2019

For years, Texas Sen. Royce West raked in millions of dollars in legal fees representing governmental entities such as the Dallas and Houston independent school districts, metropolitan transportation agencies, and major Texas cities, sparking criticism he is using his influence as a state lawmaker to score business deals average citizens cannot get. Until now, it was nearly impossible for voters to quantify the number of governmental contracting deals or estimate how much he has been personally making from his private business interests. But because West running for the U.S. Senate, which requires more robust disclosure than Texas, he is finally pulling back the curtain on his considerable wealth.

Campaign Finance

National: “At the Bedraggled FEC, a Clean Slate of Leaders? The First African-American Commissioner?” by Dave Levinthal for Center for Public Integrity

New Jersey: “ACLU Files Suit in Favor of ‘Dark Money,’ Says Donors Should Be Able to Give Money Anonymously” by Ted Sherman (NJ Advance Media) for Newark Star Ledger

Tennessee: “Tennessee Campaign Finance Officials Urge Revamp of Website, More Auditors to Scrutinize Lawmaker Spending” by Joel Ebert for The Tennessean

Elections

Montana: “Court Strikes Down Montana Law Barring Political Robocalls” by Matt Volz for AP News

North Carolina: “Dan Bishop, North Carolina Republican, Wins Special Election” by Richard Fausset and Jonathan Martin (New York Times) for MSN

Ethics

National: “FEMA Officials Accused of Bribery, Fraud in Hurricane Maria Relief” by Rick Jarvis (USA Today) for MSN

Colorado: “Chief Storytellers: Community engagement or PR?” by Graham Vyse for Governing

Lobbying

New York: “Alleged Rape Victim’s Case Shakes Up JCOPE” by Chris Bragg for Albany Times Union

New York: “Marijuana Legalization Opponent Directed to Identify Donors” by David Lombardo for Albany Times Union

The Portland Auditor has announced new campaign finance disclosure and contribution requirements and a new public campaign financing program.

Committees must now timely file disclosures of financing for certain election communications advocating for or against a city candidate. Additionally, committees must provide names of individuals or other entities contributing to the committees.

Entities making more than $750 in independent expenditures to support or oppose city candidates must now register with the secretary of state as a political committee or independent expenditure filer and provide certain disclosures.

Public and private employers must now allow employees to donate to political committees through payroll deduction if they allow similar post-tax deductions for other purposes.

The public campaign financing program will require candidates to agree to limit individual contributions to $250 or less and abide by other fundraising limits. Qualified candidates will receive a six to one match for campaign contributions of $50 or less.

Candidates will not be required to participate in the program.

The new disclosure rules went into effect Wednesday, September 4. City candidates are eligible to qualify for the public campaign finance program on Thursday, September 12.

On September 6, the Internal Revenue Service (IRS) issued a notice of a proposed rulemaking for allowing certain tax-exempt organizations to no longer be required to report the names and addresses of contributors on their annual reports.

Previously, the IRS had issued a guidance to this effect, but on July 30, the IRS guidance limiting these disclosure requirements was set aside by a federal judge.

In Bullock v. IRS, the U.S. District Court District of Montana (Great Falls) found the IRS violated the Administrative Procedure Act by not providing notice and allowing a public comment period before the guidance was issued. It predicated this decision by finding the guidance was a legislative rule.

On July 16, 2018, the U.S. Treasury Department and the IRS had announced certain tax-exempt organizations would no longer be required to report the names and addresses of contributors on their annual reports. This exemption from reporting applies to tax-exempt organizations generally not receiving tax-deductible contributions, such as labor unions, volunteer fire departments, issue-advocacy groups, local chambers of commerce, veterans’ groups, and community service clubs, according to the department’s press release.

These organizations are still required to continue to collect and keep the donor information and to make it available to the IRS upon its request.

This change did not affect the information required to be reported by charities primarily receiving tax-deductible contributions, such as 501(c)(3) organizations, certain nonexempt private foundations, or 527 political organizations. The Treasury Department and IRS had given three primary reasons for the change:

1. 1. The IRS makes no systematic use of this information collected by these organizations
   2. The policy reduces the risk of inadvertent disclosure or misuse of confidential information
   3. The policy saves both private and government resources

Comments on the proposed rule will be accepted for 90 days after the notice’s publication in the Federal Register.

Campaign Finance

National: “Harsh Spotlight on Trump Donors Raises Disclosure Questions” by Michelle Ye Hee Lee (Washington Post) for Danbury News Times

Ethics

National: “Mayors Are Harassed and Threatened, But Just How Often?” by Mike Maciag for Governing

Arizona: “Some Push for Scottsdale to End Prayer at Council Meetings Amid Legal Showdown with Satanists” by Lorraine Lonhi for Ariizona Republic

California: “Insider Lunch and a London Party: California Democrat cozied up to industry he regulates” by Hannah Wiley for Sacramento Bee

Connecticut: “State Employee Fined for Hiring Daughter for Temporary Summer Job” by Russell Blair for Hartford Courant

Rhode Island: “Rhode Island House Employee Has Sexual Assault Conviction, Records Show” by Edward Fitzpatrick for Boston Globe

Lobbying

National: “Retiring Lawmakers Will Face Tough Market on K Street” by Kate Ackley for Roll Call

Florida: “Broward Lawmaker in Line to Lead Senate Democrats Is in Relationship with Lobbyist Paid to Influence Florida Legislature” by Anthony Man for South Florida Sun Sentinel

The Federal Election Commission (FEC) is seeking public comments on proposals for rules requiring national party committees to report receipts and disbursements for their segregated accounts.

These comments must be submitted on or before October 28, 2019.

A petition filed by the Campaign Legal Center and the Center for Responsive Politics made a request to the FEC.

The request stated the national party committees report their receipts to and disbursements from the accounts in “inconsistent and insufficient ways,” making the public unable to clearly determine the amounts of money received and disbursed from the segregated accounts.

The notice of availability for the submission of public comments was issued in the August 28 Federal Register.

The Fair Political Practices Commission (FPPC) has unveiled a template contract for cities, counties, and districts allowing the FPPC to enforce local ethics and campaign finance laws.

The FPPC voted earlier this year to pursue agreements with localities to bring enhanced transparency and cost savings to local governments.

The template contract spells out the scope of work including advising, informing, auditing, and enforcing any local campaign finance and ethics ordinances, and the amount paid to the FPPC for such services.

The FPPC will ensure candidates and campaigns are following the rules and public officials are adhering to ethical standards.

Additionally, the FPPC will provide a service already in place so local governments don’t have to create their own.

The template contract can be found on the FPPC website.