National/Federal

Court Debates Using Shell Companies to Mask Political Donations
Bloomberg Law – Kenneth Doyle | Published: 1/10/2020

A federal appeals court panel heard arguments over the use of shell companies to hide donations in a case that could affect super PAC disclosure in the 2020 election. Utah businessperson Steven Lund is helping the FEC defend the dismissal of allegations that Lund and other wealthy donors used shell companies to illegally hide their donations to super PACs. Lund was among several donors accused of violating campaign finance laws by funneling millions of dollars to super PACs that supported Mitt Romney and Barack Obama in the 2012 presidential race. Obscure corporations were listed as the donors in reports filed with the FEC, prompting watchdog groups to complain the true donors were being hidden.

Did You Get a Text from an Unknown Number? It Might Be Bernie Sanders’ Campaign
McClatchyDC – Emily Cadei | Published: 1/8/2020

Democrats and Republicans alike are spending millions of dollars and deploying thousands of staffers and volunteers focused on texting with committed and potential supporters in the 2020 election. Bernie Sanders’ presidential campaign, an early adopter of the tactic, has already sent nearly nine times as many text messages to voters as it did during the entire 2016 primary. Political candidates’ and groups’ use of text messaging has skyrocketed over the past several years thanks to new software and the ease and efficiency of reaching voters across the country. “Everyone reads their text messages,” said Daniel Souweine, who ran Sanders’ text message program in 2016. “It’s quickly moved from, ‘hey, what is this thing?’, to the point where you can’t run a modern political campaign without it.”

Doctored Images Have Become a Fact of Life for Political Campaigns. When They’re Disproved, Believers ‘Just Don’t Care.’
Washington Post – Drew Harwell | Published: 1/14/2020

For ginning up political resentment and accentuating a rivals’ flaws, nothing quite compares to a doctored image. It can help anyone turn a political opponent into a caricature – inventing gaffes, undercutting wins, and erasing nuance – leaving only the emotion behind. Sharing doctored images of an electoral rival is a timeworn strategy of modern politics: in campaign mailers and television ads, shadowy lighting, sinister music, and unflattering facial expressions are so expected as to be cliché. But those tactics are increasingly playing out on the Internet, the most powerful visual medium in history, where they do not require a campaign’s backing or resources to get attention.

House Votes to Send Trump Impeachment to Senate for Trial
AP News – Linda Mascaro | Published: 1/15/2020

The U.S. House voted to send two articles of impeachment against President Trump to the Senate and approve House prosecutors for only the third impeachment trial in American history.  The nearly party-line vote moved Trump’s impeachment from the Democratic-run House to the Republican-majority Senate, where Trump expects acquittal, even as new evidence is raising fresh questions about his Ukraine dealings. The president is charged with abuse of power over his pressure on Ukraine to investigate Joe Biden, using military aid to the country as leverage. Trump was also charged with obstructing Congress’ ensuing probe.

IRS May Be Unaware of 9,774 Political Nonprofits, Watchdog Says
Los Angeles Times – Bloomberg | Published: 1/9/2020

The IRS has not done enough to identify noncompliant political organizations, despite having various sources of data that would enable it to do so, the Treasury Inspector General for Tax Administration said. There are 9,774 politically active tax-exempt organizations that may have failed to notify the IRS of their existence or submit the paperwork to operate tax-free. The groups are required to notify the IRS within 60 days of forming that they intend to operate as a “social welfare” group organized under tax code Section 501(c)4. The IRS could also be failing to collect millions of dollars in penalties and fees owed by these social welfare groups, the report said. The revelation comes as the IRS is seeking to finish regulations that would allow the groups to keep their donor lists secret unless they are requested by the agency.

Lev Parnas: Trump ‘knew exactly what was going on’ in Ukraine
Politico – Matthew Choi, Kyle Cheney, and Darren Samuelsohn | Published: 1/15/2020

Lev Parnas said President Trump and Rudy Giuliani directed him to urge Ukrainian officials to publicly open an investigation into former Vice President Joe Biden. Parnas asserted that the ouster of Marie Yovanovitch as U.S. ambassador to Ukraine was entirely motivated by her interference in their efforts to start a Biden investigation. Parnas said Trump was fully aware of his actions and added that Vice President Mike Pence, Attorney General William Barr, and former national security adviser John Bolton were all aware of or involved in parts of the scheme. Elements of his story are backed up by a trove of contemporaneous documents he provided to lawmakers in recent days, files that were initially seized by law enforcement officials following his indictment on campaign finance charges and released to him only recently.

More Money, Less Transparency: A decade under Citizens United
Center for Responsive Politics – Karl Evers-Hillstrom | Published: 1/14/2020

In 2010, the U.S. Supreme Court ruled the longstanding prohibition on independent expenditures by corporations violated the First Amendment. With its decision, the court allowed corporations and labor unions to spend unlimited sums to support or oppose candidates. The majority made the case that political spending from independent actors, even from powerful companies, was not a corrupting influence on those in office. The decade that followed was by far the most expensive in the history of American elections. The explosion of big money and secret spending was not spurred on by Citizens United alone. It was enabled by a number of court decisions that surgically removed several restrictions in campaign finance law and emboldened by inaction from Congress and gridlock within the FEC.

Ocasio-Cortez Creates PAC to Push Back on the Democratic Party’s ‘Blacklisting’ Rule
MSN – Kayla Epstein (Washington Post) | Published: 1/12/2020

U.S. Rep. Alexandria Ocasio-Cortez announced she had formed a PAC to help raise funds for progressive primary candidates. She has been a vocal opponent of the Democratic Congressional Campaign Committee’s policy to “blacklist” vendors and firms that work with candidates mounting primary challenges against Democratic incumbents. Ocasio-Cortez was one such candidate, having run a successful primary campaign against U.S. Rep. Joseph Crowley in 2018. Democratic leadership sees the rule as necessary to protect seats and win elections, but critics say it prevents fresh voices from reaching Congress and could encumber efforts to increase diversity at the Capitol.

Robert Hyde, Erratic Ex-Landscaper, Is Unlikely New Impeachment Figure
TheWorldNews.net – Michael Rothfeld, William Rashbaum, and Ben Protess (New York Times) | Published: 1/15/2020

Even in an impeachment drama brimming with improbable characters, Robert Hyde stands out.  Hyde, an obscure Republican candidate for Congress in Connecticut, was thrust into the proceedings to remove President Trump from office when the House released a series of encrypted messages that he exchanged last year with an associate of Rudolph Giuliani. The messages suggest Hyde had been secretly tracking the movements of Marie Yovanovitch, the U.S. ambassador to Ukraine at the time. The conversations drew alarm from Yovanovitch, who was removed from her post on Trump’s orders, and calls from a member of Congress for an investigation. It was only the latest in a series of erratic episodes for Hyde, whose congressional campaign has been marked by inflammatory comments.

Russians Hacked Ukrainian Gas Company at Center of Impeachment
MSN – Nicole Perlroth and Matthew Rosenberg (New York Times) | Published: 1/13/2020

Russian hackers targeted the Ukrainian gas company that is a major focus of impeachment proceedings against President Trump, according to a cybersecurity firm that says it discovered the attacks on Burisma Holdings. The Russian military hackers began an attack in November on the firm, where Democratic presidential hopeful Joe Biden’s son had served on the board. It is not yet clear what the hackers found, or precisely what they were searching for. But the experts say the timing and scale of the attacks suggest the Russians could be searching for potentially embarrassing material on the Bidens, the same kind of information that Trump wanted from Ukraine when he pressed for an investigation of the Bidens and Burisma, setting off a chain of events that led to his impeachment.

Sen. Cory Booker Exits the Democratic Presidential Primary, Making the Field Less Diverse
MSN – Amy Wang and David Weigel (Washington Post) | Published: 1/13/2020

U.S. Sen. Cory Booker announced he is dropping out of the Democratic presidential race. Booker said his operation would not have the money “to scale up and continue building a campaign that can win,” particularly with a Senate impeachment trial looming and because he would be absent from the most recent debate. As a presidential candidate, Booker was often stuck, unable to convince left-wing voters that he was on their side while turning down donations and initially rejecting super PAC support that could have helped him. Democrats who watched the candidates were often surprised by Booker’s lack of traction.

Supreme Court Won’t Hear Fight Over SEC’s Pay-To-Play Rule
law360.com – Reenat Sinay | Published: 1/13/2020

The U.S. Supreme Court declined to review a state Republican Party’s challenge to the Securities and Exchange Commission’s (SEC) power to implement a rule preventing “pay-to-play” practices by investment advisers who make political contributions, leaving in place a lower court ruling in the SEC’s favor. The rule at issue, approved by the SEC in 2016, prevents brokers from seeking government business within two years of a campaign donation. It was intended to complement the SEC’s existing rule covering investment advisers, given concerns that investment advisers might sidestep the rule by relying on brokers acting as placement agents to make the political contributions instead.

These Emails Show a Trump Official Helping Her Former Chemical Industry Colleagues
ProPublica – Derek Kravitz | Published: 1/14/2020

In 2017, Dow Chemical scored a long-sought-after victory: after a push from the U.S. government, China approved the import of the company’s genetically modified herbicide-resistant corn seeds. A grateful Dow lobbyist emailed a senior Agriculture Department official whose support had been critical: “Thank you for your efforts in support of U.S. agriculture.” That official, Rebeckah Adcock, was no stranger to Dow. Before joining the Trump administration, Adcock was the chief lobbyist for the herbicide industry’s trade group, of which Dow was a prominent member. Adcock had helped her former industry colleagues in a variety of ways. At Dow’s request, for example, she had arranged a meeting between a top company official and Secretary of Agriculture Sonny Perdue about the seed issue.

Trump Labor Agencies Ease Up on Recusals
Politico – Ian Kullgren and Rebecca Rainey | Published: 1/15/2020

President Trump promised to drain the swamp in Washington, but under his administration several high-level Labor Department and National Labor Relations Board (NLRB) officials are dealing directly with cases they touched in the private sector, raising questions about conflicts-of-interest. Labor Secretary Eugene Scalia, in his previous capacity as a private attorney, won a Chamber of Commerce lawsuit two years ago against an Obama-era regulation governing retirement advice. But in October, the department’s ethics lawyers cleared Scalia to participate in crafting a new version of the rule. The NLRB issued a new recusal policy in November that, barring unlikely intervention by a president or an appellate court ruling, leaves all decisions about conflict of interest to the NLRB member in question.

Voting Machine Makers Face Questions from House Lawmakers – But More Remain
NBC News – Ben Popkin | Published: 1/9/2020

For decades, the companies that dominated the U.S. voting machine industry operated in relative anonymity. Now, lawmakers want answers and transparency. The chief executive officers of the three companies that make more than 80 percent of the country’s voting machines testified before Congress for the first time, marking a new and bipartisan effort to ensure the security of the 2020 election. Election Systems & Software, Dominion Voting Systems, and Hart InterCivic, are almost entirely unregulated. But in recent years, policymakers and election advocates have begun to question who owns the companies, how they make their machines, and whether they could be susceptible to remote hacking.

Wealthy Donors Now Allowed to Give Over Half a Million Dollars Each to Support Trump’s Reelection
San Francisco Chronicle – Michelle Ye Hee Lee (Washington Post) | Published: 1/15/2020

Donors to President Trump’s reelection are now permitted to give nearly $600,000 per year, boosting the president’s ability to raise money from wealthy supporters. Under an agreement announced by Trump Victory, a joint fundraising committee for the Trump campaign and the Republican National Committee (RNC), a single donor can give as much as $580,600 this year to support Trump’s reelection – higher than the committee’s previous caps on contributions. That means the RNC’s biggest contributors could end up having shelled out as much as $1.6 million to support Trump’s reelection over the course of the four-year election cycle. It is the latest example of the expanding fundraising power of national party committees, made possible through pivotal legal changes in 2014 that loosened restrictions on individual donations.

White House Hold on Ukraine Aid Violated Federal Law, Congressional Watchdog Says
MSN – Jeff Stein, Ellen Nakashima, and Erica Werner (Washington Post) | Published: 1/16/2020

The White House violated federal law in its hold on security aid to Ukraine last year, according to a decision by The Government Accountability Office (GAO), a nonpartisan agency that reports to Congress The GAO found the Trump administration violated a law that governs how the White House disburses money approved by Congress. White House budget officials have defended their power to stop the money from being given to the Defense Department, arguing both congressional lawmakers and executive branch officials routinely demand delays on funding already signed into law.

From the States and Municipalities

Arizona – APS Boss Promises No More Campaign Cash for Regulators
Arizona Capitol Times – Dillon Rosenblatt | Published: 1/14/2020

The new chief executive officer of Arizona Public Service Co. (APS) vowed the company, its parent company, Pinnacle West, and other known affiliates would not spend money on campaigns for utility regulators while he is in charge. Jeff Guldner’s statement came at a meeting of the Arizona Corporation Commission in which he fielded questions, giving them what they waited months to hear: a promise to no longer allow the utility to contribute to the elections of the regulators who will have to regulate them. Three of the current commissioners, Lea Marques Peterson, Boyd Dunn, and Bob Burns, have all accepted contributions from APS and other utilities and now have to disclose it before any vote relating to those companies under a new code of ethics.

California – Slugfest at a California Conference Has Inspired a Politician to Propose a New Law
Los Angeles Times – Ruben Vives | Published: 1/13/2020

In May, two council members got into an argument at a conference in Indian Wells that turned into a brawl. The slugfest ended up involving four of the politicians from the city of Commerce and left one councilperson, Leonard Mendoza, lying on the ground unconscious. There were ripple effects: the California Contract Cities Association, the nonprofit advocacy group that hosted the conference, suspended Commerce’s membership and a local criminal investigation was launched, though no charges have been filed. Now, Assemblyperson Cristina Garcia, whose district includes Commerce, plans to introduce legislation aimed at giving the California auditor the authority to examine the finances of government lobbying organizations such as Contract Cities.

Florida – Despite ‘Cone-of-Silence’ Over JEA Sale, Top Mayoral Official Spoke to Florida Power and Light CEO During Private Party at Jaguars Game
Florida Times Union – Christopher Hong | Published: 1/9/2020

Brian Hughes, Tallahassee Mayor Lenny Curry’s top administrator, denied having a substantive conversation with Florida Power and Light Chief Executive Officer Eric Silagy during a party the company hosted at the October 27 Jacksonville Jaguars game. Silagy recalled speaking with Hughes about several issues related to economic development but not about JEA, a community owned electric, water, and sewer utility that Florida Power and Light was competing to buy. City Hall attorneys told city officials that state law prohibited them from discussing JEA privatization efforts with any representatives of the entities who submitted bids to purchase the utility. while city officials and the bidders were allowed to discuss matters unrelated to JEA, city attorneys cautioned them to “consider the appearance of impropriety” before doing so.

Florida – Lobbyist or Neighborhood Advocate? ‘Strange’ Events at Zoning Meeting Puzzles County
Palm Beach Post – Hannah Morse | Published: 1/10/2020

Supporters of a RaceTrac gas station at a Palm Beach County zoning meeting are being examined. One Palm Beach County commissioner thought it was odd that a hearing on a gas station proposal drew supporters who made curious, sometimes repetitive arguments, like preferring RaceTrac’s food offerings to fast food and enjoying the service station’s access to Wi-Fi connections. Those who made the peculiar comments are being examined closer after an allegation that they may have been paid to speak in favor of the project. “Where do you view them from someone who’s advocating versus someone who is a flat-out lobbyist?” Assistant County Administrator Patrick Rutter said.

Florida – Public Policy, Secret Sway and ‘Schmoozing’ in Tallahassee, Leon County
Tallahassee Democrat – Jeff Burlew | Published: 1/9/2020

A review of Tallahassee and Lee County commissioner calendars from 2018 and the first half of 2019 found elected officials interacted with more than 30 lobbyists who were not registered with the respective local governments during some 60 meetings. The investigation illuminated how public business is conducted in a government town brimming with lobbyists, lawyers, and consultants, where friendships, personal business, and public policy often are intertwined. While many of the lobbyist interactions may have been perfectly legal, watchdogs say they fall in a grey area of the law. In some cases, unregistered lobbyists and elected officials talked public business behind closed doors or otherwise out of the sunshine, making it impossible for constituents to know exactly what was discussed.

Illinois – City Hall Lobbyists Rewrite Their Playbook
Crain’s Chicago Business – A.D. Quig | Published: 1/10/2020

In Chicago Mayor Lori Lightfoot’s reforming crusade against aldermanic prerogative and a culture of “give to get” in City Hall, her first months have included changes that doubled fines for ethics violations and broadened the definition of lobbyist to include nonprofits. Her administration has also banned aldermen from lobbying other governments and banned other politicians from lobbying City Hall for private interests. Despite those changes – or perhaps because of them – the local lobbying business is on the upswing. Those who can navigate the changing landscape and guide their clients through it stand to benefit.

Illinois – Ethics Board Imposes Max $2,000 Fine Against Chicago Ald. Edward Burke Over Letter He Wrote in Matter Involving a Client
Chicago Tribune – Gregory Pratt | Published: 1/15/2020

The Chicago Board of Ethics fined Ald. Edward Burke $2,000 after determining the embattled alderman wrote a letter to another city official “in a matter involving a client of his law firm within 12 months of when the alderman’s law firm represented this client.” The board fined Burke the maximum it could for the violation, which was $2,000. Federal prosecutors filed a racketeering indictment against Burke in May. The 59-indictment outlined a series of alleged schemes in which prosecutors say Burke abused his City Hall clout to extort private legal work from companies and individuals doing business with the city.

Illinois – Illinois Ag Director Resigns Over Response to Rape Email
AP News – John O’Connor | Published: 1/14/2020

Illinois Gov. J.B. Pritzker’s agriculture director has resigned after acknowledging he received, but did not act on, a lobbyist’s email seven years ago that referenced an alleged rape cover-up and illegal hiring practices. John Sullivan said he did not read the email thoroughly at the time but that “I accept responsibility for what was truly an unintentional oversight and the subsequent inaction.” The email from Michael McClain, formerly a powerful lobbyist and confidante of House Speaker Michael Madigan, was sent to aides of then-Gov. Pat Quinn. It sought leniency for a “loyal” state employee who “has kept his mouth shut on Jones’ ghost workers, the rape in Champaign and other items.” Pritzker referred the matter to the Office of the Executive Inspector General for review and the Illinois State Police have opened an investigation.

Illinois – Who’s a Lobbyist? Lawmakers Grapple with the Question as Gov. J.B. Pritzker and Others Push for Ban on Public Officials Working in That Role
Chicago Tribune – Dan Petrella | Published: 1/15/2020

With federal investigators scrutinizing the activities of lobbyists at Chicago City Hall and the Capitol, Illinois Gov. J.B. Pritzker wants the General Assembly to pass legislation banning public officials from working as lobbyists at other levels of government. But to do that, lawmakers will have to decide what, exactly, counts as lobbying and who would be required to register as a lobbyist. The difficulty lawmakers face in answering those questions became apparent at the second meeting of a state ethics commission created late last year in response to the issues raised during the ongoing federal investigation. Aside from state government, only a handful of Illinois’ nearly 7,000 units of government have any kind of disclosure requirements for those seeking to influence decision-making by public officials.

Indiana – Former Lawmaker Won’t Face Lobbying Charges. Marion County Prosecutor Won’t Detail Why.
Indianapolis Star Tribune – Chris Sikich | Published: 1/13/2020

The Marion County Prosecutor’s Office has declined to say specifically why former state Sen. Allen Paul will not face criminal charges that he violated Indiana’s lobbying law, leaving veterans advocates puzzled and frustrated. A media investigation revealed a secretive employment deal with a temporary agency, in which Paul had been paid more than $150,000 to push the agenda of the state Department of Veterans’ Affairs among legislators. He did so without registering as a lobbyist, as seemingly required by law, or tracking his hours and work product, as required by his contract. Michael Leffler, a spokesperson for the prosecutor’s office, has repeatedly declined to answer specific questions about why the prosecutor’s office reached a different conclusion than the Indiana Lobby Registration Commission. The office also will not make Prosecutor Ryan Mears, or any of his deputies or investigators, available for an interview about the matter.

Maine – Indirect Lobbying Can Fly Under the Radar. A Maine Ethics Commission Proposal Could Change That
Maine Public – Steve Mistler | Published: 1/9/2020

The agency overseeing Maine’s lobbying regulations wants to update a state law that has allowed some interest groups to influence legislation by spending big without having to disclose it to the public. The proposal deals with what is known as grassroots lobbying. Jonathan Wayne, director of the Commission on Governmental Ethics and Election Practices, says it is inspired by an increase in advertising and “influence campaigns” that often do not get reported through traditional lobbying disclosures, and influenced by a shadowy group that is seeking to derail a controversial transmission line proposed by Central Maine Power. Wayne told the Legislature’s Veterans and Legal Affairs Committee his agency’s bill is designed to modernize grassroots lobbying requirements.

Maryland – After Corruption Scandal, Baltimore City Council Committee Will Consider Government Reform Measures
Baltimore Sun – Talia Richman | Published: 1/13/2020

Less than two months after former Baltimore Mayor Catherine Pugh pleaded guilty to conspiracy and tax evasion charges, the city council is pushing forward on a slate of government reform measures that include giving itself the power to oust a mayor for misconduct. Council members introduced a number of charter amendments in the wake of the wide-ranging “Healthy Holly” scandal, in which Pugh sold hundreds of thousands of dollars’ worth of self-published children’s books to companies that did business with the city. The amendments also would create a city administrator position and reduce the number of votes needed to overturn a mayor’s veto.

Massachusetts – In Novel Move, DiMasi Sues Secretary of State After Lobbyist Bid Denied
Boston Globe – Matt Stout | Published: 1/10/2020

Former Massachusetts House Speaker Salvatore DiMasi sued Secretary of State William Galvin as part of DiMasi’s bid to register as a state lobbyist, a novel legal move that could have wide ramifications for how Massachusetts lobbying and ethics laws are interpreted. DiMasi has said intended to challenge Galvin’s decision to reject his lobbying application after a state hearing officer denied DiMasi’s appeal. It is nevertheless unprecedented. First elected in 1994, Galvin has never been sued for denying a lobbyist application, and depending on how a judge rules, it could reshape how he enforces state law.

Michigan – Michigan Senator to Female Reporter: High school boys could ‘have a lot of fun’ with you
Detroit Free Press – Paul Egan and Kathleen Gray | Published: 1/15/2020

A state senator is facing widespread criticism and an investigation in the Michigan Legislature after telling a female reporter she should stick around at the Capitol because a group of high school students from an all-boys school, touring the building, could “have a lot of fun” with her. Sen. Peter Lucido made the comments outside the Senate chamber to Allison Donahue, a reporter from the Michigan Advance, while surrounded by a group of male high school students from De La Salle Collegiate. The Republican and Democratic leaders of the Senate announced they have asked the Senate Business Office to investigate whether the incident violated Senate rules related to sexual harassment.

New Jersey – No Hard Alcohol Will Be Allowed on ‘Chamber Train’ Following NJ.com Report on Sexual Harassment
Newark Star Ledger – Susan Livio and Kelly Heyboer (NJ Advance Media) | Published: 1/9/2020

The New Jersey Chamber of Commerce has banned “hard alcohol” aboard its annual “Walk to Washington” lobbying event in response to a recent report that quoted women saying they do not feel safe attending the important affair for politicians and lobbyists. The Chamber also said it will hire more security officers and establish a direct phone line that would “immediately and discreetly” report an incident of harassment directly to security personnel and the organizers. A story published in The Newark Star Ledger included interviews with women who said they were groped, assaulted, or sexually propositioned over the years on the job in state politics. The women also identified the problems with the Chamber of Commerce’s annual train trip, which includes crowded cars of people drinking and networking from Newark to Washington D.C.

New Jersey – Supreme Court Hears Arguments in Bridgegate Scandal
Northwest Indiana Times – Matt Zapotosky (Washington Post) | Published: 1/14/2020

The U.S. Supreme Court heard arguments on whether to overturn the convictions against two of former Gov. Chris Christie’s ex-political allies in the “Bridgegate” case, and the decision could have implications for how federal prosecutors pursue allegations of public corruption. The two former allies, Bridget Kelly and William Baroni Jr., argue the Justice Department reached too far in charging them with fraud for their roles in an alleged plot to back up traffic on the George Washington Bridge as retaliation against a local mayor who declined to endorse Christie’s reelection bid. They say while the conduct alleged might have been uncouth, it was not illegal, and declaring it so would criminalize routine political dealings. The Justice Department counters that Kelly and Baroni are misstating what occurred, and the evidence was sufficient to support their convictions.

New York – SAM Party Sues State Over Changes to Third Party Ballot Access
Albany Times Union – Amanda Fries | Published: 1/14/2020

A new state law in New York requiring political parties to offer a presidential candidate and garner nearly three times as many votes than previously needed to maintain their statewide ballot line is facing a legal challenge by the newest political party. The Serve America Movement (SAM) Party, which gained state ballot access in the 2018 gubernatorial race, is suing Gov. Andrew Cuomo, state legislators, and the state Board of Elections alleging the requirements are unconstitutional. The SAM Party complaint alleges that forcing the minor party to nominate a presidential candidate or otherwise lose party status is a “severe burden” and violates the First and Fourteenth amendments allowing citizens to create and develop new political parties.

Oregon – Pay to Play? Out-Of-State Law Firms Reap Rewards of Oregon Campaign Contributions
Oregon Public Broadcasting – Dirk VanderHart | Published: 1/15/2020

Almost half of the money that Oregon Treasurer Tobias Read reported raising in 2019 came from big law firms headquartered in places like New York City and Washington, D.C. Nearly all are being made by lawyers who seek work from the state. A 2008 law gave firms a chance to make millions of dollars if they are picked to work one of the potentially lucrative lawsuits that Oregon files against powerful corporations. The result is a torrent of outside money to state candidates, much of it solicited by Oregon treasurers and attorneys general, the same elected officials whose offices decide which firms get the work. “Whether this corrupts their decision or not, they ought to be sensitive to the fact that it stinks,” said James Cox, a professor at Duke University School of Law.

Rhode Island – R.I. Ethics Commission, Known for Transparency, Talks About Keeping Complaints Secret Until Investigations Done
Boston Globe – Edward Fitzpatrick | Published: 1/10/2020

Rhode Island has one of the most transparent ethics agencies in the nation, but a member of the state Ethics Commission floated an idea that would limit transparency by keeping ethics complaints under wraps until investigations are complete. Ethics complaints can be used as a “political tool,” said Dr. Robert Salk, who has been on the commission since 2012. “The problem is that the way we do it is hurting people that did nothing wrong.” When it began in 1986, the ethics panel used a “secret process,” the commission’s executive director, Jason Gramitt, said, but after court cases, hearings, and workshops, the commission opened up the complaint process.

South Dakota – Federal Judge Blocks South Dakota Petition Law
Courthouse News Service – Maria Dinzeo | Published: 1/9/2020

A federal judge struck down as unconstitutional a South Dakota law imposing burdensome regulations that would have made it much harder for the average citizen to get an initiative on the ballot. Gov. Kristi Noem signed House Bill 1094 into law in 2019, requiring petition circulators to wear name tags and register with the secretary of state. The law further mandates that circulators provide the state with their personal information, such as their home address and phone number to be included in a public directory, potentially exposing people to harassment. Aside from the unduly onerous disclosure requirements, political activist Cory Heidelberger said the law discriminates based on viewpoint, since it only applies to petition proponents.

Tennessee – Rep. Matthew Hill Facing Questions Over Last-Minute Legislation, Contributions
The Tennessean – Joel Ebert | Published: 1/16/2020

Tennessee Rep. Matthew Hill, who faced scrutiny for comments he made last year related to a little-known $4 million grant, sponsored another bill during the 2019 legislative session that will benefit several business owners who later gave him $45,000. The law would let the local government use a portion of sales tax revenue to provide incentives in the development of a taxpayer funded development district. The legislation was approved on the final day of the 2019 session. Less than a month later, the owners and employees of Face Amusement, a Johnson City-based company with land in the proposed development district, donated to a PAC used by Hill for his race for speaker.

Washington – Seattle City Council Bans ‘Foreign-Influenced’ Companies from Most Political Spending
Seattle Times – Daniel Beekman | Published: 1/13/2020

The Seattle City Council banned most political spending by “foreign-influenced corporations” to prevent international influence in city elections. The legislation would prevent corporations with a single non-U.S. investor holding at least one percent ownership, or two or more holding at least five percent ownership from contributing to directly to Seattle candidates or through PACs. Companies that have a non-U.S. investor making decisions on its American political activities will also be prevented from political spending.  The council also passed a bill that requires commercial advertisers maintain public records on political ads related to legislative decisions, in addition to ads related to elections.

Wisconsin – Appeals Court Blocks Purge of Wisconsin Voter Rolls for the Time Being
Milwaukee Journal Sentinel – Patrick Marley | Published: 1/14/2020

An appeals court ordered the state to keep more than 200,000 people on its voter rolls, a day after an Ozaukee County judge found Wisconsin election officials in contempt of court for not following his December decision to suspend voter registrations. In a separate order, one of the judges on the appeals court blocked the contempt finding, relieving the commission and three of its members of $800 in fines.  The rulings are not final and were put in place temporarily while the appeals court considers whether anyone should be taken off the rolls. But for now, the decision is a victory for Democrats who hoped to prevent thousands of people from losing their voter registrations.

After nearly 10 years in the state House, Rep. Chris Lee will not run for re-election for his House District 51 seat.

Lee’s focus is now on the state Senate seat representing District 25.

The Senate District 25 seat is open because incumbent Laura Thielen is not seeking another term.

Campaign Finance

National: “Ocasio-Cortez Creates PAC to Push Back on the Democratic Party’s ‘Blacklisting’ Rule” by Kayla Epstein (Washington Post) for MSN

Oregon: “Pay to Play? Out-Of-State Law Firms Reap Rewards of Oregon Campaign Contributions” by Dirk VanderHart for Oregon Public Broadcasting

Elections

New York: “SAM Party Sues State Over Changes to Third Party Ballot Access” by Amanda Fries for Albany Times Union

Wisconsin: “Appeals Court Blocks Purge of Wisconsin Voter Rolls for the Time Being” by Patrick Marley for Milwaukee Journal Sentinel

Ethics

National: “Ukraine Prosecutor Offered Information Related to Biden in Exchange for Ambassador’s Ouster, Newly Released Materials Show” by Paul Sonne, Rosalind Helderman, and Tom Hamburger (Washington Post) for Seattle Times

National: “House Votes to Send Trump Impeachment to Senate for Trial” by Linda Mascaro for AP News

Illinois: “Ethics Board Imposes Max $2,000 Fine Against Chicago Ald. Edward Burke Over Letter He Wrote in Matter Involving a Client” by Gregory Pratt for Chicago Tribune

Lobbying

National: “These Emails Show a Trump Official Helping Her Former Chemical Industry Colleagues” by Derek Kravitz for ProPublica

The Seattle City Council unanimously passed two bills banning most political spending by foreign-influenced corporations and clamping down on political advertising.

These bills are part of the Clean Campaigns Act, a three-bill package introduced in August of last year.

The first bill prevents corporations with a single foreign national investor holding at least 1% ownership, or two or more holding at least 5% ownership from contributing directly to Seattle candidates, political races, or through PACs.

Companies that have a non-U.S. investor making decisions on its U.S. political activities will also be prevented from political spending.

The measure closes a loophole because foreign individuals and foreign-based entities already are barred from making contributions in U.S. elections.

The second bill adds transparency to the political advertising realm.

It requires any paid advertisement regarding a political matter of local importance to follow stricter reporting guidelines and to retain and provide records about these advertisements.

The third bill, which would place a cap on Super PAC contributions, remains in the Select Committee on Campaign Finance Reform for further discussions.

Campaign Finance

National: “Supreme Court Won’t Hear Fight Over SEC’s Pay-To-Play Rule” by Reenat Sinay for law360.com

National: “More Money, Less Transparency: A decade under Citizens United” by Karl Evers-Hillstrom for Center for Responsive Politics

Washington: “Seattle City Council Bans ‘Foreign-Influenced’ Companies from Most Political Spending” by Daniel Beekman for Seattle Times

Elections

National: “Doctored Images Have Become a Fact of Life for Political Campaigns. When They’re Disproved, Believers ‘Just Don’t Care.’” by Drew Harwell for Washington Post

National: “Russians Hacked Ukrainian Gas Company at Center of Impeachment” by Nicole Perlroth and Matthew Rosenberg (New York Times) for MSN

South Dakota: “Federal Judge Blocks South Dakota Petition Law” by Maria Dinzeo for Courthouse News Service

Ethics

Illinois: “Illinois Ag Director Resigns Over Response to Rape Email” by John O’Connor for AP News

Maryland: “After Corruption Scandal, Baltimore City Council Committee Will Consider Government Reform Measures” by Talia Richman for Baltimore Sun

New Jersey: “Supreme Court Hears Arguments in Bridgegate Scandal. The Case Could Impact Future Public Corruption Prosecutions.” by Matt Zapotosky for Washington Post

Anchorage Superior Court Judge Eric Aarseth reversed the Division of Election’s rejection of the Recall Dunleavy campaign application.

The Division of Elections rejected a bid to advance the recall effort based on an opinion from Attorney General Kevin Clarkson.

Clarkson found the reasons listed for the recall were factually and legally deficient.

The Recall Dunleavy group argued that Clarkson’s analysis was overreaching and the recall effort should be allowed to move to a second signature-gathering phase.

Gov. Mike Dunleavy’s administration stated it will appeal the decision to the Alaska Supreme Court.

Democrat Cynthia Neeley and Republican Adam Ford won the House District 34 special primaries held on January 7.

Less than 7% of Flint’s 62,242 registered voters participated in the special election.

Gov. Gretchen Whitmer called the election after Cynthia Neeley’s husband, Sheldon was elected Flint’s mayor.

A general election is set for March 10.

The candidate chosen March 10 will finish the remainder of Sheldon Neeley’s term, set to expire on December 31, 2020.

Mayor Dan Barrone took his official oath of office on January 4 for the District 42 seat in the New Mexico Legislature.

After applying first for the District 6 Senate position, Barrone decided to put his name in the hat for representative after Roberto “Bobby” Gonzales vacated his seat to serve in the state Senate.

He will serve his term in the Legislature while still acting as the mayor for the town of Taos.

Ahead of the 2020 legislative session, the Hawaii Campaign Spending Commission has submitted six measures to the Senate President and the House Speaker for introduction.

The proposed measure relating to campaign finance reports clarifies that the increased fine for the late-filing of preliminary reports only applies to the reports due 10 days before a primary, general, or special election.

This proposed change is due to the additional preliminary reports mandated by the Legislature last session.

Other proposals include legislation introduced but not passed last session, such as House Bill 164 relating to electioneering communications.

The measure includes:

• Changing the disclosure date of electioneering communication
• Adding advertisements sent by mail to the definition of electioneering communication
• Rewording an exception to that definition to make it clear that candidate committees rather than noncandidate committees are required to file statements of information

The 2020 Legislative session is scheduled to begin on Wednesday, January 15.

Campaign Finance

National: “Court Debates Using Shell Companies to Mask Political Donations” by Kenneth Doyle for Bloomberg Law

National: “Did You Get a Text from an Unknown Number? It Might Be Bernie Sanders’ Campaign” by Emily Cadei for McClatchyDC

Elections

National: “Sen. Cory Booker Exits the Democratic Presidential Primary, Making the Field Less Diverse” by Amy Wang and David Weigel (Washington Post) for MSN

Lobbying

California: “Slugfest at a California Conference Has Inspired a Politician to Propose a New Law” by Ruben Vives for Los Angeles Times

Florida: “Lobbyist or Neighborhood Advocate? ‘Strange’ Events at Zoning Meeting Puzzles County” by Hannah Morse for Palm Beach Post

Illinois: “City Hall Lobbyists Rewrite Their Playbook” by A.D. Quig for Crain’s Chicago Business

Indiana: “Former Lawmaker Won’t Face Lobbying Charges. Marion County Prosecutor Won’t Detail Why.” by Chris Sikich for Indianapolis Star Tribune

New Jersey: “No Hard Alcohol Will Be Allowed on ‘Chamber Train’ Following NJ.com Report on Sexual Harassment” by Susan Livio and Kelly Heyboer (NJ Advance Media) for Newark Star Ledger

Campaign Finance

National: “IRS May Be Unaware of 9,774 Political Nonprofits, Watchdog Says” by Bloomberg for Los Angeles Times

Elections

National: “Voting Machine Makers Face Questions from House Lawmakers – But More Remain” by Ben Popkin for NBC News

Ethics

Illinois: “Fallout Spreads After Madigan Confidant’s Email on ‘Rape,’ Ghost Payrollers Rocks Political Landscape” by Tina Sfondeles for Chicago Sun-Times

Rhode Island: “R.I. Ethics Commission, Known for Transparency, Talks About Keeping Complaints Secret Until Investigations Done” by Edward Fitzpatrick for Boston Globe

Lobbying

Florida: “Despite ‘Cone-of-Silence’ Over JEA Sale, Top Mayoral Official Spoke to Florida Power and Light CEO During Private Party at Jaguars Game” by Christopher Hong for Florida Times Union

Florida: “Public Policy, Secret Sway and ‘Schmoozing’ in Tallahassee, Leon County” by Jeff Burlew for Tallahassee Democrat

Maine: “Indirect Lobbying Can Fly Under the Radar. A Maine Ethics Commission Proposal Could Change That” by Steve Mistler for Maine Public

Massachusetts: “DiMasi Sues Galvin Amid Dispute Over Lobbying, Ethics Laws” by Matt Stout for Boston Globe

National/Federal

6 Million Democratic Donors Gave $1 Billion in 2019 Through ActBlue, Officials Say
Washington Post – Michelle Ye Hee Lee | Published: 1/9/2020

Democratic small-dollar donors gave $1 billion through the online fundraising platform ActBlue in 2019, highlighting the explosion of online giving on the left heading into the presidential election year. Of the 6 million donors who gave to Democratic candidates and organizations in 2019, half were first-time donors, pointing to the growing base of contributors who are giving online. Forty percent of the new donors gave multiple times, according to ActBlue, in a sign of the new donors’ sustained political interest and engagement. Donors contributing in low increments online gave $343 million in the final three months of 2019.

Bipartisan Group of Campaign Finance Lawyers Urge Leaders to ‘Immediately’ Restore Quorum at Federal Election Commission
MSN – Michelle Ye Hee Lee (Washington Post) | Published: 1/6/2020

A bipartisan group of campaign finance lawyers urged the White House and congressional leaders to “work together and immediately” to restore a voting quorum on the FEC, which cannot monitor compliance with election laws even as presidential primaries begin in February. The agency tasked with regulating federal campaign finance laws has long faced ideological divisions and polarization. But it lost its ability to do its official job after the August 2019 resignation of a commissioner left it to operate for the first time in 11 years without its necessary four-person quorum. While routine administrative work continues, the agency cannot enforce the law, vote on investigations, provide guidance, or conduct audits – activities that are especially crucial and timely for a presidential election.

Bolton Is Willing to Testify in Trump Impeachment Trial, Raising Pressure for Witnesses
MSN – Nicholas Fandos and Michael Schmidt (New York Times) | Published: 1/6/2020

John Bolton, the former White House national security adviser, said he was willing to testify at President Trump’s impeachment trial, putting new pressure on Republicans to call witnesses and raising the possibility of revelations as the Senate weighs Trump’s removal. Bolton’s surprise declaration was a dramatic turn that could alter the political dynamic of the impeachment process in the Senate and raise the risks for Trump of Republican defections. The former national security adviser is a potentially vital witness, with direct knowledge of presidential actions and conversations regarding Ukraine that could fill in blanks in the narrative of the impeachment case.

Duncan Hunter Resigns from Congress
Roll Call – Chris Marquette | Published: 1/7/2020

U.S. Rep. Duncan Hunter submitted his resignation from Congress, marking the end of an 11-year stint in the House marred by his misuse of campaign funds for a variety of endeavors, including spending money on Lego sets, movie tickets, a $14,000 family vacation to Italy, and flights for his family’s pet rabbit. Hunter said his resignation would be effective January 13. He pleaded guilty to using hundreds of thousands of dollars in campaign funds for his own enrichment. Hunter and his wife, Margaret, who also pleaded guilty, illegally converted over $150,000 in campaign funds from 2010 through 2016 to buy goods and services for their own interests, according to the plea agreement. Hunter’s sentencing is scheduled for March 17.

Ex-Tea Party Lawmakers Turn Heads on K Street
The Hill – Alex Gangitano | Published: 1/8/2020

A number of prominent former lawmakers associated with the Tea Party Caucus have joined the ranks of K Street in the last year, bringing their small government agendas to the lobbying world. K Street has always been a favored perch for ex-lawmakers, but the recent moves from conservatives are attracting controversy. Tea Party groups and Trump have long run on reining in the influence of special interests and Tea Party lawmakers often clashed with the influence world and a number of prominent industries in high-profile fights. In the Trump era, though, K Street has seen business grow as the Republican president’s agenda has sparked major battles over trade, health care, and taxes. Despite Trump’s vows to challenge Washington, the “revolving door” between K Street and his administration has been busy. For critics, that is a sign that it is business as usual in the nation’s capital.

Facebook Bans Deepfakes, but New Policy May Not Cover Controversial Pelosi Video
MSN – Tony Romm, Drew Harwell, and Isaac Stanley-Becker (Washington Post) | Published: 1/6/2020

Facebook banned users from posting computer-generated, highly manipulated videos, known as deepfakes, seeking to stop the spread of a novel form of misinformation months before the 2020 presidential election. But the policy does not prohibit all doctored videos: Facebook’s new guidelines do not appear to address a deceptively edited clip of House Speaker Nancy Pelosi that went viral on the social network last year. Monika Bickert, the company’s vice president for global policy management, will testify at a congressional hearing on “manipulation and deception in the digital age.” The inquiry marks the latest effort by House lawmakers to probe Facebook’s digital defenses after Russian agents weaponized the site to stoke social unrest during the 2016 race.

Facebook Says It Won’t Back Down from Allowing Lies in Political Ads
Seattle Times – Tony Romm, Isaac Stanley-Becker, and Craig Timberg (Washington Post) | Published: 1/9/2020

Facebook decided not to limit how political ads can be targeted to specific groups of people, as Google did to fight misinformation. Neither will it ban political ads outright, as Twitter did. And Facebook still will not fact check them, as it has faced pressure to do. Instead, Facebook announced much more limited “transparency features” that aim to give users slightly more control over how many political ads they see and to make its online library of political ads easier to use. These steps appear unlikely to assuage critics who say Facebook has too much power and not enough limits when it comes to its effects on elections and democracy itself.

FBI Raids Home, Office of Lobbyist Michael Esposito
Connecticut Post – Devlin Barrett, Jonathan O’Connell, and Beth Reinhard (Washington Post) | Published: 1/3/2020

FBI agents investigating a lobbyist who has claimed to have close ties to President Trump and his family searched the man’s home and K Street office for evidence of possible fraud, according to people familiar with the matter. Michael Esposito’s business has boomed in the Trump era, but Trump, White House officials, and senior Republicans have said he greatly exaggerated his claims of access to the president and his inner circle. Following a story on Esposito’s business, the FBI is investigating to determine whether he may have defrauded his clients or engaged in any other type of financial fraud, the people said.

Judges Struggle Over Trump Bid to Block McGahn Congressional Testimony
Reuters – Jan Wolfe and Lawrence Hurley | Published: 1/3/2020

Appeals court judges appeared skeptical about broad legal arguments by President Trump’s administration seeking to block a former White House lawyer from testifying to Congress as part of the impeachment effort against Trump, but also seemed wary about stepping into the heated political fight. Judge Thomas Griffith asked tough questions of the Justice Department lawyer who argued on the administration’s behalf and the lawyer for the U.S. House Judiciary Committee that subpoenaed former White House Counsel Don McGahn and could be the pivotal vote in deciding the case. A second case involved the administration’s appeal of a judge’s October ruling that grand jury information in special counsel Robert Mueller’s probe should be provided to lawmakers.

Mnuchin Seeks Delay of Proposed Disclosure of Secret Service Spending on Presidential Travel Until After Election
MSN – Carol Leonnig and David Fahrenthold (Washington Post) | Published: 1/8/2020

The Trump administration is seeking to delay a Democratic effort to require the Secret Service to disclose how much it spends protecting President Trump and his family when they travel until after the 2020 election. The issue has emerged as a sticking point in recent weeks as Treasury Secretary Steven Mnuchin and key senators have been negotiating draft legislation to move the Secret Service back to his department, its historic home. Mnuchin has balked at Democratic demands that the bill require the Secret Service to disclose the costs related to the travel of the president and his adult children within 120 days after it is passed.

Shadow Group Provides Sanders Super PAC Support He Scorns
AP News – Bruian Slodysko | Published: 1/8/2020

U.S. Sen. Bernie Sanders says he does not want a super PAC. Instead, he has Our Revolution, a nonprofit political organization he founded that functions much the same as one. Like a super PAC, Our Revolution can raise unlimited sums from wealthy patrons that dwarf the limits faced by candidates and conventional PACs. Unlike a super PAC, however, the group does not have to disclose its donors, a stream of revenue commonly referred to as “dark money.” Our Revolution appears to be skirting campaign finance law, which forbids groups founded by federal candidates and officeholders from using large donations to finance federal election activity, including Sanders’ presidential bid.

The Surreal Lives of 2020 Campaign Spouses: What happens when your loved one wants to be president
Greenwich Time – Jada Yuan (Washington Post) | Published: 1/8/2020

A modern presidential candidate’s significant other has the dual jobs of being an uncomplaining source of support for their partner, making sure he or she is getting fed and sleeping and has someone to vent to, plus often being the mouthpiece for your partner and attending events he or she cannot get to. Some, such as Jill Biden and Jane Sanders, have done this before, but no one could have prepared for this historically large and diverse field, with so many potential first gentlemen campaigning, or a primary season that is coinciding with the third presidential impeachment in the nation’s history.

Trump Donor Charged with Obstructing Inauguration Inquiry
AP News – Jim Mustian and Alan Suderman | Published: 1/7/2020

Federal prosecutors charged a major donor to President Trump’s inaugural committee with obstructing a federal investigation into whether foreign nationals unlawfully contributed to the inaugural celebrations. The donor, Imaad Zuberi, recently pleaded guilty in a separate case in Los Angeles to campaign finance violations, tax evasion, and failing to register as a foreign agent. A criminal information accuses Zuberi, a venture capitalist, of taking “numerous steps” to interfere with the investigation into where the inaugural committee received its funding. Prosecutors say Zuberi backdated a $50,000 check and deleted emails.

From the States and Municipalities

Alaska – Sponsor Says Alaska Elections Initiative Has Enough Signatures to Be Placed on Ballot
Alaska Public Media – Andrew Kitchenman | Published: 1/3/2020

Sponsors of an initiative to overhaul Alaska’s election laws said they have enough signatures for the measure to be placed on the ballot in November. The initiative is among several issues that are expected to be the focus of state government ahead of the start of the legislative session on January 21. The Better Elections Initiative would create an open primary that would send the top four vote-getters to the general election. Then voters would be able to rank their choices in the general election. The initiative also would increase campaign finance disclosures.

California – L.A. to Curb Developer Donations, but Some Fear Corporate Contributions Could Mask Source of Giving
Los Angeles Times – Emily Alpert Reyes | Published: 1/5/2020

A new campaign finance ordinance in Los Angeles prohibits real estate developers from contributing to city council members that vet their projects. Critics say an additional provision is needed – barring donors from giving through limited liability companies and other business entities that can make it difficult to tell who is donating. Los Angeles allows political donors to give not only as individuals, but also through companies and other groups. But some corporate entities do not have to publicly reveal who owns them, leaving it unclear to the public who is giving the money. In some cases, donors have funneled money through such companies to evade restrictions on campaign contributions.

Florida – JEA Paid $25,000 to Lobbyist with Business Ties to Then-CEO Aaron Zahn Through JaxChamber
Florida Times-Union – Christopher Hong | Published: 1/8/2020

Jacksonville Chamber of Commerce Chief Executive Officer Daniel Davis confirmed a JEA official instructed one of his staffers to hire Deno Hicks, a local lobbyist who at the time had an undisclosed business partnership with then-CEO Aaron Zahn, to raise money for an innovation conference that JEA and the chamber organized in 2018. JEA, a community owned electric, water, and sewer utility, paid the chamber $25,000. Davis said he approved the request to hire Hicks’ firm, the Southern Strategy Group. He said hiring someone to raise money for an event was not unusual, although he did not know Zahn and Hicks co-owned a piece of undeveloped property in the city, which they have tried to sell for nearly $2 million.

Florida – Nonprofit Group Criticizes Lawmakers’ Move Toward Limiting Local Power
South Florida Sun Sentinel – Jim Turner (News Service of Florida) | Published: 1/7/2020

A research group wants Florida lawmakers to temper a trend of tying the hands of city and county officials by “preempting” local regulations. Integrity Florida issued a report raising concerns that lawmakers, with the backing of powerful lobbying groups, are strategically attacking home-rule authority on issues ranging from sunscreen bans to regulating businesses. Ben Wilcox, research director for Integrity Florida, said a trend of preemption measures is growing, with 119 bills filed during the past three legislative sessions that included some form of preemption and nearly 20 filed for the 2020 session.

Georgia – Ex-Atlanta Official Gets 2-Year Sentence in Corruption Probe
AP News – Kate Brumbeck | Published: 1/7/2020

A man who was tasked with ensuring equal opportunities for those seeking contracts with the city of Atlanta was given a two-year prison sentence for failing to disclose outside consulting work and not reporting some income to tax authorities. Larry Scott was director of the city’s Office of Contract Compliance and resigned shortly before he pleaded guilty to charges of wire fraud and filing false tax returns. Scott was also ordered to pay about $124,000 in restitution. He was the sixth person to plead guilty in a long-running federal investigation into corruption at City Hall during the administration of former Mayor Kasim Reed.

Illinois – Vendor Bribed CPS Employee with Vacation Home Stay During Bid for $30M Contract, Inspector General Says
Chicago Sun-Times – Nader Issa | Published: 1/6/2020

A vendor looking to win a $30 million nursing services contract with the Chicago Public Schools (CPS) tried to sway the bidding by letting a district employee stay at her vacation home. Although CPS ended up not awarding the contract to the vendor, she eventually was given a different, much smaller contract for the nursing services just a few years later and still has that work with the school district. Those were the key findings of an investigation by CPS Inspector General Nicholas Schuler’s office, which released its 2019 year-end report detailing the office’s most significant cases of the past year.

Indiana – Former Indiana State Lawmaker Won’t Face Felony Charges Related to Violating Lobbying Laws
Indianapolis Star – Chris Sikich and Tony Cook | Published: 1/3/2020

Former state Sen. Allen Paul will not face felony charges related to violating Indiana’s lobbying laws. An Indianapolis Star investigation  revealed a secretive employment deal with a temp agency, in which Paul had been paid more than $150,000 to push the agenda of the Indiana Department of Veterans’ Affairs (IDVA) among legislators. He did so without registering as a lobbyist or tracking his hours, as required by his contract. Both the temp agency, KHI Solutions, and the IDVA were sanctioned for failing to register their lobbying efforts. The state ethics commission also told Paul to register, but he refused.

Kansas – Group Resists Naming Donors After Pro-Kobach Ads in Kansas
AP News – John Hanna | Published: 1/2/2020

A group that sponsored ads promoting Republican Kris Kobach during his failed 2018 run for Kansas governor is arguing it is not legally required to disclose its donors. The Kansas Governmental Ethics Commission has given Per Aspera Policy until January 15 to file public reports on its activities during the last governor’s race. The commission warned the group it could face a potential fine of up to $300 for each missing report and intentionally failing to disclose the information is a misdemeanor. But an attorney representing the group told the commission it is not required to disclose any information under Kansas law because its ads did not “expressly advocate”{ for Kobach’s election.

Maryland – Former Maryland Delegate Sentenced to Six Months in Prison for Misusing Campaign Funds
AP News – Michael Kunzelman | Published: 1/3/2020

Former Maryland Del. Tawanna Gaines was sentenced to six months in prison followed by two months of home detention for misusing campaign funds for her personal benefit. Gaines also must pay $22,565 in restitution. Gaines pleaded guilty to one count of wire fraud. She faced a maximum sentence of 20 years in prison. Assistant U.S. Attorney Thomas Windom has said Gaines spent campaign money on personal expenses including fast food, hair styling, dental work, a cover for her swimming pool, and an Amazon Prime membership.

Maryland – Maryland Gov. Larry Hogan Announces Ethics Reform Legislation, Fends Off Questions About His Firm
Baltimore Sun – Luke Braodwater and Pamela Wood | Published: 1/7/2020

Maryland Gov. Larry Hogan said he will introduce legislation to punish corrupt state lawmakers after a recent spate of convictions. At the same time, Hogan brushed off questions from reporters and some Democratic lawmakers about his transparency and ethics as he continues to make hundreds of thousands of dollars annually from real estate deals managed by a trust, approved by the State Ethics Commission, and run by his associates. Hogan’s Ethics and Accountability in Government Act would increase state penalties for bribery of public officials to a maximum of $100,000 and authorize the ethics panel to impose civil penalties against state employees and public officials without first going to court, among other proposals.

Minnesota – Legislator’s Work as St. Paul Mayor’s Aide Raises Red Flag
Minneapolis Star Tribune – Jim Walsh | Published: 1/6/2020

Kaohly Vang Her, policy director for St. Paul Mayor Melvin Carter and a state representative, so liked the mayor’s idea to give every capital city newborn $50 for a college savings plan that Her authored a bill to help pay for it. That is a potential problem, say authorities on government ethics. Because Carter is Her’s boss, he could show her favor, or withhold it, based on what she might accomplish as a legislator, said Annastacia Belladonna-Carrera, executive director of Common Cause Minnesota. Her defended the advocacy for the savings plan as good for St. Paul children. It is no different, she said, than other legislators – farmers, teachers, doctors, and businesspeople – promoting their professional interests at the Capitol.

Minnesota – Proposed Changes to Campaign Spending, Lobbying Laws Put on Ice
Minnesota Public Radio – Brian Bakst | Published: 1/3/2020

Sensing resistance, Minnesota’s campaign and lobbying regulatory board intends to hold back on sweeping legislative recommendations that would redefine advocacy rules and expand a program aimed at encouraging small-dollar campaign contributions. The Campaign Finance and Public Disclosure Board decided instead to write a letter to the Legislature to encourage a debate over a campaign and lobbying structure that has not changed much in recent years. Board members said they and board staffers would work to refine their suggestions in the meantime. Board Chairperson Robert Moilanen said the letter would stress to legislators that current laws are outdated but acknowledge there is “not a consensus on the solution.”

Missouri – Clean Missouri Redistricting Changes to Be Discussed by Legislators
Columbia Missourian – Lillie Hegeman | Published: 1/6/2020

From its early days of gathering signatures in the beginning of 2018 to the final week of the 2019 legislative session, Clean Missouri has been at the center of public, legislative, and judicial debate. And that is not going to change as lawmakers begin the 2020 legislative session. The ballot initiative limits lobbyist gifts to lawmakers to five dollars or less, tighten limits on campaign contributions that legislators can accept, and changed the process and criteria for drawing state legislative districts and create a “nonpartisan state demographer” position to carry out the task. When the amendment passed, however, legislators were not done with the debate. Some lawmakers in 2019 proposed resolutions to alter or repeal the portion that most troubles some of them: the redistricting changes. The issue will continue to be a focus of the 2020 session.

Missouri – Town and Country Mayor, Who Is a Registered Lobbyist, Tripped Up by Recent Ethics Law Change
St. Louis Post-Dispatch – Jack Suntrup | Published: 1/7/2020

Jon Dalton, a registered lobbyist and the mayor of Town and Country, must shut down his campaign committee in response to a 2016 state law, the Missouri Ethics Commission said. In a consent order Dalton signed, the commission cited the relatively new requirement that “any person who registers as a lobbyist shall dissolve his or her campaign committee.” Dalton, who has lobbied since 1994 and was first elected mayor in 2005, said he was caught between two different statutes when the Legislature approved the ethics bill: one requires lobbyists to register with the state and the other requires candidates to form campaign committees.

Montana – Judge Dismisses Lawsuit Against Bullock
Helena Independent Record – Holly Michels | Published: 1/2/2020

A federal judge ruled a group suing to overturn a Montana executive order requiring disclosure of contributions to dark money groups has to fix their lawsuit or it will be permanently dismissed. Gov. Steve Bullock’s order requires any company wanting to bid on state contracts in Montana worth more than $25,000 for services or $50,000 for goods to disclose donations of $2,500 or more to political groups including organizations that are not required to disclose donors. Illinois Opportunity Project sued, arguing it wanted to spend in Montana’s 2020 gubernatorial election, but it faced difficulty finding corporate donors due to the governor’s order.

Nevada – Nevada Redistricting Group Files Amended Petition
Las Vegas Review-Journal – Bill Dentzer | Published: 1/7/2020

A group seeking to change how Nevada redraws state legislative and congressional districts has resubmitted a proposed state constitutional amendment after a judicial order that found the original petition misleading. Fair Maps Nevada, a local group involved in a national effort to counter state-based gerrymandering, filed in November to put a petition on this year’s ballot establishing a commission to redraw districts based on the decennial census. Under current state law, reapportionment is done by the Legislature subject to the governor’s signoff. The change would establish a seven-member commission to handle the task. Anyone who had worked during the preceding four years in certain state jobs; as a lobbyist, campaign consultant, or party official; or had run for or held elected office, and their close relatives, would be ineligible to serve on the commission.

New Jersey – Fix the ‘Toxic Culture’ in N.J. Politics, Top Senator Demands after NJ.com Report on Sexual Harassment
Newark Star Ledger – Kelly Heyboer and Susan Livio (NJ Advance Media) | Published: 12/30/2019

State Senate Majority Leader Loretta Weinberg said she is forming an ad hoc committee to look for ways to change the “toxic culture that women face in New Jersey politics.”  The committee, which will include several top female lobbyists and political operatives, will be created in response to an NJ Advance Media report detailing the sexual harassment, groping, and sexual of women working in state and local politics. The ad hoc panel will look for solutions to the climate of misogyny, harassment, and sexual assault that pervades New Jersey politics, said Weinberg.

New Jersey – N.J. Won’t Dismiss Ethics Complaint in $40M School Named After the Lt. Gov.
Newark Star Ledger – Adam Clark (NJ Advance Media) | Published: 1/3/2020

Voting to name a $40 million school after your boss might be unethical, even if your boss is New Jersey’s lieutenant governor, according to the School Ethics Commission, which found probable cause to sustain two of the eight ethics charges levied against Terry Swanson-Tucker, president of the East Orange School Board and chief of staff for Lt. Gov. Sheila Oliver. The case now moves to an investigation and hearing by the Office of Administrative Law. It will determine if Swanson-Tucker violated state ethics law when she voted in December 2018 to suspend a district naming policy and rename the George Washington Carver Institute the Sheila Y. Oliver Academy.

New Mexico – New State Watchdog Ready to Investigate Ethics Complaints
Albuquerque Journal – Dan McKay | Published: 1/3/2020

Decades in the making, New Mexico’s ethics panel is now ready to accept and investigate complaints. The agency has appointed two hearing officers, established a website, and may issue its first advisory opinion in February. It is the result of a 40-year push to establish an independent watchdog with jurisdiction over allegations against legislators, candidates, lobbyists, and others. Voters overwhelmingly approved a constitutional amendment establishing the State Ethics Commission in 2018, after several ethics scandals, including the corruption conviction of a former state senator.

North Carolina – NC Voter ID Law Written with ‘Discriminatory Intent,’ Says Judge Who Just Blocked It
Raleigh News and Observer – Wil Doran | Published: 12/31/2019

Racial discrimination was at least part of the motivation for a new voter ID law in North Carolina, a federal judge wrote, striking the law down for now. U.S. District Court Judge Loretta Biggs’ ruling means that although voters statewide approved a voter ID mandate as an amendment to the state constitution in the 2018 elections, people most likely will be able to vote without showing ID in at least the March primary election. The last time North Carolina’s Republican-led General Assembly passed a voter ID law, in 2013, it was also struck down for racial discrimination. But GOP leaders have said they believed this newer version of the law, which was passed a year ago, avoided the racial issues the previous law ran into.

Pennsylvania – Pittsburgh Campaign Rules Curb Contributions, but Punish Some Candidates
Pittsburgh Post-Gazette – Rich Lord | Published: 1/5/2020

Pittsburgh’s decade-long effort to limit the influence of money in city politics now faces both a court challenge and complaints from some candidates that it threatens to stifle democracy. The city first put limits on contributions to campaigns for mayor, controller, and council in 2009, and revised the rules in 2015. Now, outgoing Councilperson Darlene Harris is challenging the constitutionality of the limits in a lawsuit. And as the city’s Ethics Hearing Board pursues enforcement actions, candidates facing fines are speaking out.

Texas – Jerry-Rigged? Second Garcia Withdraws from Harris County Constable’s Race but Remains on Ballot
Houston Chronicle – Zach Despart | Published: 1/8/2020

One of the two candidates named Jerry Garcia who filed to run for Houston’s Precinct 2 constable – the one who did not appear to be actively campaigning – has withdrawn from the race. His short, strange trip as a candidate is not over yet, however. He will remain on the ballot for the March 3 Democratic Party primary, though votes for him will not count. Garcia, who is a cousin of Democratic incumbent Constable Chris Diaz’s wife, was one two men who had filed for the seat bearing the same name as the late Grateful Dead guitarist. The other Jerry Garcia said the turn of events is further evidence the former candidate never intended to mount a serious campaign. That Garcia, a lieutenant in a neighboring constable precinct, alleges the incumbent Diaz pushed his wife’s cousin to run solely to confuse voters, ensuring his re-election.

Vermont – Some Legislators’ Financial Disclosures Were Late, Report Says
Seven Days – Colin Flanders | Published: 1/7/2020

The 2018 election was the first for which Vermont lawmakers were required to disclose their financial interests when filing to run for office, allowing voters to see potential conflicts-of-interest before casting their ballots. But according to the House Ethics Panel, disclosure forms for “multiple” legislators were not publicized by the last election. Multiple as in about 30, or a fifth of the House members, according to panel Chairperson John Gannon. State law says House candidates must file financial disclosure forms with their town clerks when submitting petitions to run for office. The documents detail sources of income for candidates and their spouses or partners greater than $5,000, including investments. They must also disclose whether they own 10 percent of any companies, and whether such companies do business with the state.

Vermont – VPIRG Head Calls for End to ‘Worthless’ Ethics Commission
VTDigger.org – Mark Johnson | Published: 1/8/2020

The head of the organization that pushed hardest for a state Ethics Commission in Vermont says it should be disbanded. Paul Burns, executive director of the Vermont Public Interest Research Group, said the commission was “worthless” and provided lawmakers “a fig leaf of protection” that they were addressing ethics concerns. Vermont was one of the last states to establish an ethics commission in 2017. That came after years of discussion and receiving a grade of “F” from the Center for Public Integrity on ethics enforcement. The panel and part-time executive director have no powers to investigate or levy punishment. It essentially operates as a referral agency, taking in complaints about state officials and sending them to another agency. Burns said the Legislature established the commission simply to “get off the list of states without one.”

Washington – Seattle Council Advances Ban on Most Political Spending By ‘Foreign-Influenced’ Companies
Seattle Times – Daniel Beekman | Published: 1/7/2020

Seattle moved closer to banning most political spending by “foreign-influenced” corporations, as a city council committee advanced legislation that Council President M. Lorena González said could companies from using money to shape elections. But González postponed a committee vote on other legislation that would limit all contributions to the PACs that businesses, labor unions, and other interests used to bundle and spend a record $4 million in last year’s elections. She said the council needs to further vet the nationally watched proposal, which would likely be challenged in court, though she and her colleagues did narrow a loophole that could have advantaged unions and grassroots groups.

Washington DC – D.C. Council Member Jack Evans to Resign Over Ethics Violations; Was City’s Longest-Serving Lawmaker
Stamford Advocate – Fenit Nirappil and Paul Schwartzman (Washington Post) | Published: 1/7/2020

District of Columbia Councilperson Jack Evans announced he will resign on January 17. The council took a preliminary vote to expel Evans and had scheduled a hearing to summarize the case against him and offer him an opportunity to speak before a final expulsion vote. Evans’s close ties to business eventually proved to be his undoing, as his outside employment with law firms and as a consultant to prominent companies with interests before city government came under scrutiny. He stepped down from the board of the Washington Metropolitan Area Transit Authority after an investigation there found ethics violations. Federal prosecutors are investigating Evans and FBI agents searched his home, but he has not been charged with a crime.

Washington DC – Top D.C. Ethics Investigator Resigns Amid Scrutiny of His Office
Laredo Morning Times – Fenit Nirappil (Washington Post) | Published: 1/7/2020

The District of Columbia’s top ethics investigator has resigned amid criticism of the agency’s failure to promptly investigate complaints. Brent Wolfingbarger resigned as the director of government ethics at the Board of Ethics and Government Accountability effective December 31, agency officials said. Wolfingbarger’s two-year tenure at the helm of the city’s internal watchdog had come under scrutiny by lawmakers and watchdogs. Several city council members had criticized the ethics board for staying on the sidelines of an ongoing ethics issue involving another member, Jack Evans. The board was formed in 2013 after several scandals involving council members.

Commissioner Nick Fish passed away on January 2, creating a vacant council seat.

The Portland City Council chose the May 19 municipal primary election date for a special election to fill the vacancy.

Potential candidates would have to wait until March 10 to file for Fish’s position.

If no candidate receives more than 50% of the vote, the top two vote-getters would face each other in a runoff election on November 3.

Rep. Duncan Hunter sent a letter of resignation to House Speaker Nancy Pelosi and Gov. Gavin Newsom after pleading guilty to conspiracy to misuse campaign funds.

Hunter will officially step down from his 50th Congressional District seat on January 13.

Gov. Newsom decided not to call a special election so the seat will remain vacant until the November election.