Campaign Finance

Colorado: “Outside Groups Spent More Than $1 Million to Influence Denver’s Election, and It Took a Lot of Work to Figure That Out” by Andrew Kenney for Denver Post

Oregon: “Limits on Oregon Campaign Money Are Dead. But Voters May Still Get to Weigh In.” by Rob Davis for Portland Oregonian

Washington: “These Voters Are Using Democracy Vouchers to Influence Seattle’s City Council Races” by Daniel Beekman for Seattle Times

Elections

National: “‘Who’s Taking Care of the Kids?’ Is Finally a Question for Dads on the Trail, Too” by Lisa Lerer (New York Times) for MSN

Ethics

National: “‘I Hate David and I Hate This Job’: Ex-Schweikert staffers describe unrest in ethics report” by Ronald Hanson for Arizona Republic

Connecticut: “A Decade After His Corruption Scandal Broke, Hartford Weighs a Second Chance for Eddie Perez” by Rebecca Lurye for Hartford Courant

Oklahoma: “Ethics Commission Says Money Is Tight” by Nolan Clay for The Oklahoman

Redistricting

Virginia: “Supreme Court Dismisses Challenge to Findings of Racial Gerrymandering in Virginia Districts” by Robert Barnes (Washington Post) for Philadelphia Inquirer

National/Federal

A Wealthy Iraqi Sheikh Who Urges a Hard-Line U.S. Approach to Iran Spent 26 Nights at Trump’s D.C. Hotel
MSN – Joshua Partlow, David Fahrenthold, and Taylor Luck (Washington Post) | Published: 6/6/2019

In July, a wealthy Iraqi sheikh named Nahro al-Kasnazan wrote letters to national security adviser John Bolton and Secretary of State Mike Pompeo urging them to forge closer ties with those seeking to overthrow the government of Iran. Four months later, he checked into the Trump International Hotel in Washington, D.C. and spent 26 nights in a suite, a visit estimated to have cost tens of thousands of dollars. Kasnazan said his choice of the Trump hotel was not part of a lobbying effort. His long visit is an example of how Trump’s Washington hotel, a popular gathering place for Republican politicians and people with government business, has become a favorite stopover for influential foreigners who have an agenda to pursue with the administration.

As 2020 Candidates Struggle to Be Heard, Their Grumbling Gets Louder
New York Times – Lisa Lerer and Reid Epstein | Published: 6/11/2019

Of the 23 Democratic candidates for president, only eight routinely break one percent in national polls. Most have not yet qualified for the fall debates. And cable news channels, which have emerged as an early driving force in the race, have only so many hours of programming each day. That has moved the campaign into a new, yet familiar, phase: the ritual airing of grievances. Weeks’ worth of pent-up frustration is beginning to trickle into the public arena, as a way for candidates to explain their lowly positions, both to themselves and to the voters.  The rules around participation in the primary debates are a sore spot for second- and third-tier candidates, who fear getting shut out of the biggest stage in the race.

Bipartisan Senators Push New Bill to Improve Foreign Lobbying Disclosures
The Hill – Alex Gangitano | Published: 6/10/2019

U.S. Sen. Charles Grassley introduced legislation that would give the Department of Justice more tools to investigate possible violations of the Foreign Agents Registration Act, a 1938 statute that lawmakers on both sides of the aisle have characterized as outdated and weak. The bill would allow the Justice Department to increase the penalties for people who fail to properly register as a foreign agent. It also would require the Government Accountability Office to study whether and to what extent the Lobbying Disclosure Act exemption is being abused to conceal foreign lobbying activity.

Chao Created Special Path for McConnell’s Favored Projects
Politico – Tucker Doherty and Tanya Snider | Published: 6/10/2019

The Transportation Department under Secretary Elaine Chao designated a special liaison to help with grant applications and other priorities from her husband Mitch McConnell’s home state of Kentucky, paving the way for grants totaling at least $78 million for favored projects as McConnell prepared to campaign for re-election. Chao’s aide Todd Inman, who stated in an email to McConnell’s Senate office that Chao had personally asked him to serve as an intermediary, helped advise the senator and local Kentucky officials on grants with special significance for McConnell, including a highway-improvement project in a McConnell political stronghold that had been twice rejected for previous grant applications. The circumstances highlight the ethical conflicts in having a powerful Cabinet secretary married to the Senate’s leader and in a position to help him politically.

DeVos’ Student Aid Chief Quits Foundation Board Following Questions on Conflict of Interest
Politico – Michael Stratford | Published: 6/11/2019

The Education Department appointee who oversees the government’s $1.5 trillion student loan being asked about a potential conflict-of-interest. Mark Brown, a retired major general in the U.S. Air Force, was selected by Education Secretary Betsy DeVos to be the new head of the department’s Office of Federal Student Aid. Until recently, he also served as an unpaid member of the board of directors of KnowledgeWorks, a non-profit foundation that holds about $30 million in federally guaranteed student loans. Several ethics experts said that arrangement raised concerns about a potential conflict because Brown’s unit is responsible for regulating and overseeing student loans backed by the government, including those that are owned by KnowledgeWorks.

Echoes of Biden’s 1987 Plagiarism Scandal Continue to Reverberate
Anchorage Daily News – Neena Satija (Washington Post) | Published: 6/5/2019

Joe Biden ended his first presidential campaign in 1987 amid questions about a value he had worked hard to convince voters he had: authenticity. The collapse had begun with news that Biden had lifted phrases and mannerisms from a British Labour Party politician while making closing remarks at a debate. Examples soon surfaced of Biden using material from other politicians without attribution, and he acknowledged he had been accused of plagiarism in law school. Now, those events are back in the spotlight for the former vice president, who is one of the most visible Democrats in a crowded field vying to run against President Trump. Biden’s campaign acknowledged it had lifted phrases, without attribution, from various nonprofit publications in its climate and education plans.

Election Rules Are an Obstacle to Cybersecurity of Presidential Campaigns
New York Times – Nicole Perlroth and Matthew Rosenberg | Published: 6/6/2019

One year out from the 2020 elections, presidential candidates face legal roadblocks to acquiring the tools and assistance necessary to defend against the cyberattacks and disinformation campaigns that plagued the 2016 campaign. Federal laws prohibit corporations from offering free or discounted cybersecurity services to federal candidates. The same law also blocks political parties from offering candidates cybersecurity assistance because it is considered an in-kind donation. The issue took on added urgency after lawyers for the FEC advised the agency to block a request by Area 1 Security, asked the company to refile the request with a simpler explanation of how it would determine what campaigns qualified for discounted services.

NRA Money Flowed to Board Members Amid Allegedly Lavish Spending by Top Officials and Vendors
MSN – Beth Reinhard, Katie Zezima, Tom Hamburger, and Carol Leonnig (Washington Post) | Published: 6/9/2019

The National Rifle Association (NRA), which has been rocked by allegations of exorbitant spending by top executives, also directed money in recent years that went to board members, the very people tasked with overseeing the organization’s finances. Eighteen members of the NRA’s 76-member board, who are not paid as directors, collected money from the group during the past three years. The payments deepen questions about the rigor of the board’s oversight as it steered the country’s largest and most powerful gun rights group, according to tax experts and some longtime members. The payments, coupled with multimillion-dollar shortfalls in recent years and an ongoing investigation by the New York attorney general, threaten the potency of the NRA, long a political juggernaut and a close ally of President Trump.

Rep. Greg Pence Amends Filing That Showed Lodging Charge at Trump Hotel
USA Today – Maureen Groppe | Published: 6/11/2019

U.S. Rep. Greg Pence, brother of Vice President Mike Pence, reported spending more than $7,600 in campaign funds on lodging at the Trump International Hotel in the first few months after his election in November, although lawmakers are supposed to pay for their own housing in Washington, D.C. Hours after USA Today pressed for details on the nature of the lodging expenses, Rep. Pence’s campaign filed an amended FEC report that changed the designation of the expenses to “fundraising event costs.” Federal election rules allow campaign funds to be spent on hotels for fundraising events. And Greg Pence separately reported more than $15,000 in catering and reception costs at Trump’s hotel in December and January.

Top AI Researchers Race to Detect ‘Deepfake’ Videos: ‘We are outgunned’
San Francisco Chronicle – Drew Harwell (Washington Post) | Published: 6/12/2019

Artificial-intelligence (AI) researchers warn that computer-generated fake videos could undermine candidates and mislead voters during the 2020 presidential campaign. Powerful new AI software has effectively democratized the creation of convincing “deepfake” videos, making it easier than ever to fabricate someone appearing to say or do something they did not really do. And researchers fear it is only a matter of time before the videos are deployed for maximum damage – to sow confusion, fuel doubt, or undermine an opponent, potentially on the eve of a White House vote. Even simple tweaks to existing videos can create turmoil, as happened with the recent viral spread of a video of House Speaker Nancy Pelosi, distorted to make her speech stunted and slurred. That video was viewed more than 3 million times.

Trump 2020 Campaign Ad Payments Hidden by Layers of Shell Companies
Center for Responsive Politics – Anna Massoglia | Published: 6/13/2019

The Trump 2020 campaign funneled money to a shell company tied to ad buyers at the center of an alleged illegal coordination scheme with the National Rifle Association (NRA) as recently as May 2019. The previously unreported ad buys for Trump’s re-election campaign routed through a secretive limited-liability company known as Harris Sikes Media LLC were revealed in Federal Communications Commission records. The Trump campaign stopped reporting payments to ad buyers at American Media & Advocacy Group following allegations the company facilitated illegal coordination between the campaign and the NRA through American Media’s affiliates National Media Research, Planning & Placement and Red Eagle Media Group. Trump’s reelection campaign quietly continued to funnel money to the same individuals through payments to Harris Sikes Media.

Trump Lawyer’s Message Was a Clue for Mueller, Who Set It Aside
MSN – Michael Schmidt and Charle Savage (New York Times) | Published: 6/9/2019

As the special counsel’s investigators pursued the question of whether President Trump tried to impede their work, they uncovered compelling evidence – a voice mail recording and statements from a trusted witness – that might have led to him. An attorney for Trump, John Dowd, reached out to a lawyer for a key witness who had just decided to cooperate with the government, Michael Flynn. Dowd fished in his message for a heads-up if Flynn was telling investigators negative information about Trump, while also appearing to say that if Flynn was just cutting a deal without also flipping on the president, then he should know Trump still liked him. Dowd never said whether Trump directed him to make the overture. And investigators for Robert Mueller declined to question Dowd about his message. Legal experts were divided on whether Mueller’s team should have sought to question Dowd.

Trump Says He’d Consider Accepting Dirt from Foreign Governments on His Opponents
Keene Sentinel – Colby Itkowitz and Tom Hamburger | Published: 6/13/2019

President Trump said if a foreign power offered dirt on his 2020 opponent, he would be open to accepting it and he would have no obligation to call in the FBI. The president’s comments come as congressional investigations into Russian interference in the 2016 election continue, and they drew sharp response from his would-be Democratic rivals. Although special counsel Robert Mueller did not find enough evidence to establish a criminal conspiracy involving the Trump campaign in his probe of Russia’s role in the 2016 election, his report said the Russian government interfered in the election in a “sweeping and systemic fashion” and that Trump’s campaign was open to assistance from Russian sources.

What the Governors Feuding with Their Own Parties Have in Common
Governing – Alan Greenblatt | Published: 6/11/2019

A handful of governors presiding over one-party states are now taking serious hits from legislators and leaders in their own political parties. In New Jersey, Democratic Gov. Phil Murphy is engaged in a feud with state Senate President Stephen Sweeney that has led to threats of a primary challenge. In Kentucky, Republican Lt. Gov. Jeanne Hampton warned recently about “dark forces” operating within Gov. Matt Bevin’s administration. Craig Blair, who chairs the Senate Finance Committee in West Virginia, called on Republican Gov. Jim Justice to resign. In states with divided governments, it is almost to be expected that governors and legislators will sometimes sling arrows at each other. But most states are dominated by a single party, and their most powerful politicians are finding that it can still be difficult to get along.

With Most States Under One Party’s Control, America Grows More Divided
MSN – Timothy Williams (New York Times) | Published: 6/11/2019

It is the first time in more than a century that all but one state Legislature is dominated by a single party. Most legislative sessions have ended or are scheduled to end in a matter of days in capitals across the nation, and Republican-held states have rushed forward with conservative agendas as those controlled by Democrats have pushed through liberal ones. Any hope that single-party control in the states might ease the tone of political discourse has not borne out. Lopsided party dominance has not brought resignation; instead of minority parties conceding they lack the numbers to effectively fight back, the mood has grown more tense and vitriolic. Analysts said issues addressed by state Legislatures this year, which included gun control and health care, might have more lasting effect than anything approved in Washington, D.C., where government is divided.

From the States and Municipalities

California – Democrats Say They Don’t Take Big Tobacco Money. But JUUL Had a Sponsorship at Convention
Sacramento Bee – Andrew Sheeler | Published: 6/7/2019

JUUL Labs, maker of a line of e-cigarette products in popular use among middle and high school students, had a prominent sponsor slot on the stage of the California Democratic Party’s state convention, where politicians like U.S. House Speaker Nancy Pelosi, Gov. Gavin Newsom, and a bevy of presidential candidates and state officials spoke. State Sen. Jerry Hill, an outspoken critic of tobacco companies, said he could not believe his eyes when he saw the sponsorship. “I was baffled because it’s a long-standing policy of the Democratic Party not to take money from Big Tobacco,” Hill said. JUUL is one-third owned by Altria, which owns Philip Morris USA.

Illinois – Mayor Lori Lightfoot to Introduce Ethics Package Aimed at Fighting City Hall Corruption
Chicago Tribune – John Byrne | Published: 6/5/2019

Chicago Mayor Lori Lightfoot will seek to follow through on her campaign pledge to clean up a City Hall that for months has been rocked by an FBI investigation and racketeering charges against Ald. Edward Burke by introducing an ethics reform package. The former federal prosecutor’s proposal looks to tighten the rules for aldermen holding outside jobs and would require nonprofits lobbying City Hall to register as lobbyists. It also would give city Inspector General Joseph Ferguson the power to audit city council committees. Lightfoot is  also pushing for more modest increases to fines for ethics violations than the city Ethics Board has proposed.

Indiana – Judge Rules Against Fort Wayne’s Pay to Play Ordinance
Fort Wayne Journal Gazette – Dave Gong | Published: 6/11/2019

Superior Court Judge Jennifer DeGroote ruled against the city of Fort Wayne in a case regarding its controversial “pay-to-play” ordinance. DeGroote blocked the city from enforcing the ordinance that restricted how much money the owners of a company could give elected officials and still bid on city contracts. The ordinance prohibited any company from bidding on a city contract if any owner, partner, or principal who owns more than 10% of that company gave more than $2,000 to the campaign of a person with responsibility for awarding contracts.

New Hampshire – Top N.H. Lawmaker Says No Lobbying Involved in His Union Job, But His Predecessor Was a Lobbyist
New Hampshire Public Radio – Casey McDermott | Published: 6/6/2019

House Majority Leader Doug Ley is adamant he has not broken any ethics rules by engaging in legislative advocacy as president of the New Hampshire chapter of the American Federation of Teachers while serving in the Legislature. He has also maintained his work on the union’s behalf – testifying at public hearings, rallying support or opposition for specific bills, and sending out “legislative bulletins” to union members – does not count as lobbying. But Ley’s predecessor at the union, Laura Hainey, said she did consider much of the same kind of advocacy work she did at the statehouse to constitute lobbying. And, unlike Ley, she registered as a lobbyist during her term as the union’s president.

New Jersey – Gov. Phil Murphy, Lawmakers Reach Deal on Dark Money Disclosure
Burlington County Times – Dave Levinsky | Published: 6/10/2019

Facing the likelihood that lawmakers would vote to override his earlier veto, New Jersey Gov. Phil Murphy agreed to sign a “dark money” disclosure bill originally sent to him. Lawmakers agreed to vote again on the original legislation and Murphy has agreed to sign it with no changes. The bill mandates the disclosure of donors who give more than $10,000 to nonprofit 501(c)4 groups that are not currently subject to disclosure requirements if they engage in political activities, lobbying, or campaigning. It would also mandate the disclosure of expenses of more than $3,000 and would boost contribution limits to state and county political committees. Those groups are already subject to strict reporting requirements but have been usurped by dark-money groups in recent years.

New York – Inside the Stealth Campaign for ‘Responsible Rent Reform’
New York Times – Vivian Wang | Published: 6/10/2019

Confronted with a Democratic takeover of the state Legislature and emboldened progressive activists, the city’s landlords and developers, long accustomed to ruling New York through political donations and expensive lobbyists, are adopting the tactics of their activist foes. They have sent buses of electricians and boiler repair workers to Albany to protest the proposed changes, organized rallies outside public hearings, formed groups with generic names to run social media advertisements, and paid for mailers urging constituents to call their representatives. The goal is to deliver the industry’s message that too-strict rent regulations would affect not only wealthy landlords, but also the working class in a way that does not seem like it is coming from the industry.

Wisconsin – Hours Before a Trial Was Set to Start, Wisconsin Supreme Court Reinstates Most GOP Lame-Duck Laws
Milwaukee Journal Sentinel – Patrick Marley | Published: 6/11/2019

The Wisconsin Supreme Court reinstated most of the lame-duck laws Republican lawmakers approved in December to trim the powers of the state’s top Democrats. With a pair of orders, the high court canceled a trial and put back in place almost all the lame-duck laws while it considers an appeal. After the rulings, just two provisions of the lame-duck laws have been kept from going into effect. One would have limited early voting; the other would have required a public commenting period for older government documents. The status of the laws could change in the months ahead because the Supreme Court has to make more rulings in the case. A federal judge is overseeing another challenge to the lame-duck laws that is in its early stages.

Campaign Finance

Indiana: “Judge Rules Against Fort Wayne’s Pay to Play Ordinance” by Dave Gong for Fort Wayne Journal Gazette

New York: “Amid Controversy, City Council Moves Ahead with Campaign Finance Bill Extending Public Match” by Caitlyn Rosen for Gotham Gazette

Elections

National: “As 2020 Candidates Struggle to Be Heard, Their Grumbling Gets Louder” by Lisa Lerer and Reid Epstein for New York Times

Ethics

National: “Rep. Greg Pence Amends Filing That Showed Lodging Charge at Trump Hotel” by Maureen Groppe for USA Today

National: “DeVos’ Student Aid Chief Quits Foundation Board Following Questions on Conflict of Interest” by Michael Stratford for Politico

Washington: “Washington Supreme Court Weighing Legislative Records Case” by Rachel LaCorte for AP News

Legislative Issues

National: “What the Governors Feuding with Their Own Parties Have in Common” by Alan Greenblatt for Governing

Wisconsin: “Hours Before a Trial Was Set to Start, Wisconsin Supreme Court Reinstates Most GOP Lame-Duck Laws” by Patrick Marley for Milwaukee Journal Sentinel

A special election will take place on August 20 followed by a runoff election on November 5.

The elections will fill a vacancy in House District 42.

Former Rep. Jimmy Martin held the seat until his passing in May.

Allen Superior Court Judge Jennifer DeGroote blocked the city of Fort Wayne from enforcing a pay-to-play ordinance.

The ordinance restricts how much money the owners of companies could give elected officials and still bid on city contracts.

Under the ordinance companies are forbidden from bidding on a city contract if any owner, partner, or principal who owns more than 10% of the company gave more than $2,000 to the political campaign of a person with the responsibility of awarding contracts.

Judge DeGroote’s ruling stated the ordinance was superseded by state law, specifically the Home Rule Act.

The Home Rule Act grants municipalities the ability to self-govern in areas not covered by the state.

Under state law, elections are the domain of the Indiana Election Commission.

A special primary election will take place on July 30 followed by a special election on October 1 to fill a vacancy in House District 84.

The seat is vacant after former Rep. Ronnie Young passed away in May.

A special primary runoff election is scheduled for August 31.

Campaign Finance

California: “Democrats Say They Don’t Take Big Tobacco Money. But JUUL Had a Sponsorship at Convention” by Andrew Sheeler for Sacramento Bee

Minnesota: “Rep. Ilhan Omar to Reimburse $3,500 in Misspent Campaign Funds” by Emily Kopp for Roll Call

Elections

National: “Election Rules Are an Obstacle to Cybersecurity of Presidential Campaigns” by Nicole Perlroth and Matthew Rosenberg for New York Times

Ethics

National: “NRA Money Flowed to Board Members Amid Allegedly Lavish Spending by Top Officials and Vendors” by Beth Reinhard, Katie Zezima, Tom Hamburger, and Carol Leonnig (Washington Post) for MSN

National: “Chao Created Special Path for McConnell’s Favored Projects” by Tucker Doherty and Tanya Snider for Politico

Florida: “State Ethics Commission Fines Gillum, Drops Most Charges” by Mary Ellen Klas and Elizabeth Koh for Miami Herald

Lobbying

New York: “Inside the Stealth Campaign for ‘Responsible Rent Reform’” by Vivian Wang for New York Times

Oklahoma: “Stitt to End $1.5 Million in State Agency Lobbying Contracts” by Tres Savage for NonDoc

Elections

National: “Echoes of Biden’s 1987 Plagiarism Scandal Continue to Reverberate” by Neena Satija (Washington Post) for Anchorage Daily News

Ethics

National: “A Wealthy Iraqi Sheikh Who Urges a Hard-Line U.S. Approach to Iran Spent 26 Nights at Trump’s D.C. Hotel” by Joshua Partlow, David Fahrenthold, and Taylor Luck (Washington Post) for MSN

Florida: “Florida Repeals ‘Blind Trust’ Law That Shielded Rick Scott’s Investments” by Mary Ellen Klas (Miami Herald) for Tampa Bay Times

Illinois: “Mayor Lori Lightfoot to Introduce Ethics Package Aimed at Fighting City Hall Corruption” by John Byrne for Chicago Tribune

Michigan: “Guilty Detroit Metro Airport Boss Gasps at Verdict in $5M Bribery Case” by Robert Snell for Detroit Free Press

Tennessee: “Casada to Step Down as Speaker in August, Asks Governor to Call a Special Session” by Natalie Allison and Joel Ebert for The Tennessean

Lobbying

California: “Proposal Would Tighten San Diego Lobbyist Disclosures to Avoid Unintended Consequences” by David Garrick for San Diego Union Tribune

New Hampshire: “Top N.H. Lawmaker Says No Lobbying Involved in His Union Job, But His Predecessor Was a Lobbyist” by Casey McDermott for New Hampshire Public Radio

National/Federal

A ‘Bridge’ to China, and Her Family’s Business, in the Trump Cabinet
MSN – Michael Forsythe, Eric Lipton, Keith Bradsher, and Sui-Lee Wee (New York Times) | Published: 6/2/2019

Transportation Secretary Elaine Chao has no formal affiliation or stake in her family’s shipping business, Foremost Group, which has deep ties to the economic and political elite in China. But she and her husband, Senate Majority Leader Mitch McConnell, have received millions of dollars in gifts from her father, who ran the company until last year. And McConnell’s re-election campaigns have received more than $1 million in contributions from Chao’s extended family. Over the years, Chao has repeatedly used her connections and celebrity status in China to boost the profile of the company. Now, Chao is the top Trump official overseeing the American shipping industry, which is overshadowed by its Chinese competitors. Her efforts on behalf of the family business have come as Foremost has interacted with the Chinese state to a remarkable degree for an American company.

FEC to Mitt Romney, Michele Bachmann and 48 More Zombie Campaigns: Why are you still here?
Tampa Bay Times – Christopher O’Donnell, Eli Murray, Connie Humburg, and Noah Pransky | Published: 5/31/2019

The FEC demanded explanations from about 50 politicians who are operating zombie campaigns – political committees that keep spending contributions long after the campaign has ended. The agency sent letters to the campaigns asking why their campaign accounts were still open. It flagged specific expenses by at least 17 campaigns and asked them to justify the spending. It is the first action taken by the FEC since it announced in April 2018 that it would start scrutinizing the spending of what it called “dormant” campaigns. Federal law does not allow campaign money to be spent improving politicians’ personal lives.

How Payday Lenders Spent $1 Million at a Trump Resort – and Cashed In
ProPublica – Alice Wilder (WNYC) and Anjali Tsui | Published: 6/4/2019

In March, the payday lending industry held its annual convention at the Trump National Doral hotel outside Miami. A month earlier, Kathleen Kraninger, who had just finished her second month as director of the federal Consumer Financial Protection Bureau, had delivered what the lenders consider an epochal victory: Kraninger announced a proposal to eviscerate a crucial rule that had been passed under her Obama-era predecessor. This year was the second in a row the industry’s trade group, the Community Financial Services Association of America, held its convention at the Doral. In the eight years before 2018, the organization never held an event at a Trump property.

In Need of Cash, Democratic Presidential Hopefuls Turn to Wealthy Donors
MSN – Michelle Ye Hee Lee (Washington Post) | Published: 6/2/2019

Across the Democratic field, presidential candidates are embracing the big donors they distanced themselves from early on – a sign of increasing doubt the small, online donations the campaigns have been chasing will be sufficient to sustain two-dozen primary contenders. Many of the candidates previously had held a handful of high-dollar fundraisers or avoided them altogether, seeking to tap into the populist sentiment that has animated the Democratic base. But after a disappointing fundraising haul in the first quarter of the year, and as the primary drags on with no clear front-runner, many of the candidates are turning their focus to wealthy donors, a strategy that could help keep their campaigns viable but may hamper their ability to connect with base voters.

Liberals Rip Democratic Leaders for Writing Drug Pricing Bill in Secret
The Hill – Peter Sullivan | Published: 6/6/2019

Progressive House Democrats are growing increasingly frustrated with their party’s leadership, accusing them of writing Democrats’ signature bill to lower prescription drug prices in secret and without their input. At issue is a plan Pelosi’s office has been working on for months that would allow Medicare to negotiate drug prices, a top priority for Democrats and one the party stressed in its campaign last year to win back the House. There is now an intense debate within the Democratic caucus over the details of that proposal, with the Progressive Caucus pushing for a bill that it says is stronger because it would strip a company of its monopoly on a drug if the manufacturer refuses to agree to a reasonable price in Medicare negotiations.

Meet the GOP Operatives Who Aim to Smear the 2020 Democrats – but Keep Bungling It
MSN – Manuel Roig-Franzia and Beth Reinhard (Washington Post) | Published: 6/4/2019

Like notorious dirty tricksters before them, Jack Burkman and Jacob Wohl operate in a realm where it matters little whether their outrageous claims against political opponents are proved – they hardly ever are – but only whether they somehow slip into the national consciousness. But today it is a more dangerous game: they operate in an era when notions about truth and fiction have been upended and in which many Americans get their information from self-affirming, partisan silos, making their brand of political cyberwarfare hyper-relevant.

Recent Ex-Members of Congress Head to K Street as ‘Shadow Lobbying’ Escalates
Center for Responsive Politics – Karl Evers-Hillstrom | Published: 5/30/2019

Nearly two dozen former members of the 115th Congress have already found jobs at lobbying firms.  Lobbying is a natural next step for recently departed members who spent years cultivating relationships with their colleagues and interest groups. While former members of Congress must wait two years before lobbying their respective chamber’s ex-colleagues, they often engage in so-called shadow lobbying – participating in activities that might be considered lobbying but declining to register under the Lobbying Disclosure Act (LDA). “[The] LDA is nothing more than an honor system,” said Paul Miller, president of the National Institute for Lobbying and Ethics.

Tech Giants Amass a Lobbying Army for an Epic Washington Battle
New York Times – Cecilia Kang and Kenneth Vogel | Published: 6/5/2019

Amazon, Apple, Facebook, and Google have built themselves into some of the largest players on K Street as they confront threats from the Trump administration and both parties on Capitol Hill. Amazon’s expansion has been met with unease over labor conditions and the company’s effect on small businesses. The four companies spent a combined $55 million on lobbying last year. Of the 238 people registered to lobby for the companies in the first three months of this year, both in-house employees and those on contract from lobbying and law firms, about 75 percent formerly served in the government or on political campaigns. Amazon’s Washington office is led by a former Federal Trade Commission official, Brian Huseman. Its roster of contract lobbyists includes three Democratic former members of Congress and two former Justice Department lawyers.

Ted Cruz and Alexandria Ocasio-Cortez Team Up to Ban Lawmakers from Lobbying
National Public Radio – Sasha Ingber | Published: 5/31/2019

Two lawmakers who have often been at odds found common ground in a place that often highlights polarizing opinions: Twitter. That is where U.S. Sen. Ted Cruz and U.S. Rep. Alexandria Ocasio-Cortez vowed to set aside their differences and work on new lobbying restrictions for lawmakers. Now an unlikely coalition is forming around their joint effort. Craig Holman, who lobbies on ethics, campaign finance, and lobbying on behalf of Public Citizen, said it is “heartening” that Cruz and Ocasio-Cortez moved to bridge the deep partisan divide. “I am not sure if Congress will be willing to adopt their proposed lifetime ban, but the sheer fact of a left-and-right agreement that the revolving door is a grave problem that must be addressed is going to move the ball forward,” Holman said.

The Campaign Finance of Women’s Suffrage
WHYY – Kimberly Adams | Published: 6/4/2019

Women’s suffrage took more than seven decades of political struggle and included marches, hunger strikes, and arrests. And, like political campaigns of today, it required a lot of money. While women like Susan B. Anthony and Elizabeth Cady Stanton were on the front lines of the movement, there were other women working behind the scenes to fund it. “We don’t tend to teach about the suffrage movement as a major lobbying force, a major well-funded organization in American political history, but it was,” said Corrine McConnaughy, an associate professor of political science at George Washington University and author of “The Woman Suffrage Movement in America: A Reassessment.”

Trump Resort Revenue Has Gone Up After Presidential Visits
Politico – Anita Kumar | Published: 6/6/2019

President Trump’s week-long trip to Europe included a tour of his own businesses. Trump traveled to his luxury resort on Ireland’s west coast for a visit that brought world-wide publicity and increased security to the location, and, if past trends hold, more revenue. The president’s trip to Trump International Golf Links in Doonbeg, Ireland has once again led to criticisms that he is using his office to make money for his own business. It marks the second time he has visited one of his properties outside the United States since he was sworn into office. “U.S. foreign relations should never rise and fall on the financial interests of the president and the ability to promote his own property,” said Noah Bookbinder, executive director of Citizens for Responsibility and Ethics in Washington, which examined his financial disclosures.

Trump Urges Customers to Drop AT&T to Punish CNN Over Its Coverage of Him
Portland Press Herald – Craig Timberg, Taylor Telford, and Josh Dawsey (Washington Post) | Published: 6/3/2019

President Trump called for a boycott of AT&T, the corporate owner of CNN, saying the network paints a “false picture” of the U.S. The comment, which Trump tweeted in response to seeing CNN coverage while traveling during a European tour, fueled criticisms the president was using his power inappropriately to intimidate critics. Historians struggled to cite an equivalent threat even from presidents such as Richard Nixon renowned for their hostility toward the press. Less democratic nations with more tenuous press freedoms often use government regulatory power, criminal investigations or tax audits to punish news organizations seen as providing unflattering coverage, but past U.S. presidents rarely have taken such public shots at the businesses of the owners of major American news organizations, historians said.

From the States and Municipalities

Alabama – Dunkin’ Donuts Owner Accuses Ethics Commission Investigator of Abuse of Power
Montgomery Advertiser – Kirsten Fiscus | Published: 5/31/2019

When Damon Dunn received notification of a discrimination complaint against his Dunkin’ Donuts store, he was concerned at first, then confused, and then angry. It is corporate policy that customer complaints are reviewed and handled in a timely manner, but the majority of those are disgruntled customers upset about a long wait time or food prepared incorrectly. Byron Butler, a man Dunn would learn is an investigator with the Alabama Ethics Commission, accused the store of charging black customers more for extra pumps of coffee flavoring known as “swirl” at the restaurant, a claim that Dunn says is unfounded. Butler told an employee he was an investigator and took a verbal statement from her about the charging practices. The employee, who is 18, thought she would face legal trouble if she did not talk with him.

Florida – Lawmakers Call for Probe of NRA Lobbyist Marion Hammer’s Failure to Disclose Payments
Miami Herald – Samantha Gross | Published: 5/30/2019

Some Democratic lawmakers in Florida are calling for an investigation into whether prominent National Rifle Association (NRA) lobbyist Marion Hammer violated state law by failing to disclose payments from her organization while lobbying on NRA priorities like banning the sale of bump stocks. According to Florida law, non-employee lobbyists for both legislative and executive branches are required to register and disclose their total compensation. Hammer is not an in-house lobbyist for the NRA, and therefore is required under law to submit a compensation report for each quarter during which she was registered to lobby. The Florida Bulldog reported Hammer failed to file any compensation reports with state since at least 2007.

Florida – Top City Law Firm Broke County Lobbying Rules
Fort Myers News-Press – Bill Smith | Published: 5/31/2019

One of the region’s biggest law firms is among several business interests that did not meet required deadlines for registering as lobbyists, Lee County’s inspector general said in an investigative report. Henderson, Franklin, Starnes & Holt, a Fort Myers based law firm; John Gucciardi, a consultant to Fort Myers Beach developer TPI Hospitality; and Waldrop Engineering each missed filing deadline. Waldrop went seven years without filing the statement. It has since filed registrations for its employees.

Georgia – Abrams Probe Highlights Wide Reach of State Ethics Commission
Georgia Public Broadcasting – Stephan Fowler | Published: 6/5/2019

Lawyers for former gubernatorial candidate Stacey Abrams say the Georgia Government Transparency and Campaign Finance Commission did not follow its own rules in an investigation of her 2018 campaign. The commission alleges illegal coordination between the Abrams campaign and four outside organizations. The campaign argued the ethics panel failed to follow its rules for opening an inquiry and sharing probable cause for the allegations. But according to state law, the commission is following the rules. Rick Thompson, a former executive secretary of the commission, said in terms of procedure, the subpoenas are above board. The full scope of the probe will not be made clear until it is put before a meeting of the full commission.

Illinois – Ald. Edward Burke Indicted on Expanded Federal Racketeering, Bribery Charges
Chicago Tribune – Jason Meisner, Todd Lighty, and Gregory Pratt | Published: 5/30/2019

Chicago Ald. Edward Burke was meeting with a fellow alderman in October 2017 when he allegedly expressed his displeasure over the way developers of the old main Chicago post office had so far failed to throw any business to Burke’s private law firm. “As far as I’m concerned, they can go f— themselves,” Burke told Ald. Daniel Solis, who was secretly recording the conversation. The conversation is at the center of a 14-count indictment outlining 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. Also charge Burke in attempting to shake down two businesspeople seeking to renovate a Burger King restaurant in the ward.

Kentucky – Appellate Court Upholds State Ban of Gifts, Money to Kentucky Lawmakers
Lexington Herald-Leader – Jack Brammer | Published: 5/30/2019

A federal appeals court upheld a Kentucky law that prohibit lobbyists from giving gifts to state legislators or donating to their campaigns. The ruling by the U.S. Sixth Circuit Court of Appeals reversed a ruling by U.S. District Court Judge William Bertelsman, who struck down the bans, ruling Kentucky’s laws burdened “core political speech” and curtailed freedom of association. The appeals court reversed the ruling and said the measures “enacted to prevent corruption and protect citizens’ trust in their elected officials, comport with the Constitution.”

Massachusetts – Convicted of Corruption, DiMasi Now Wants to Be a Lobbyist. The State Has Other Ideas
Boston Globe – Matt Sout and Andrea Estes | Published: 6/5/2019

Massachusetts Secretary of State William Galvin’s office rejected former state House Speaker Salvatore DiMasi’s application to become a lobbyist just days after he registered to lobby both the Legislature and executive branch. DiMasi appealed and is due to appear before an administrative hearing officer. His attempt at entering the lucrative industry came after he completed his supervised release following his conviction on corruption charges. DiMasi argued that because lawmakers did not include any of the specific federal statutes on which he was convicted into the state law, he should not be prohibited from registering. Laurie Flynn, Galvin’s chief legal counsel, argued DiMasi’s criminal record includes “conduct in violation” of state lobbying and ethics laws, which automatically bars him from lobbying for 10 years after his conviction, or until June 2021.

Michigan – Emails Show MDOT Let Lobbyist Steer Report on Gravel Shortage for Michigan Roads
Detroit Free Press – Paul Egan | Published: 6/6/2019

When Michigan gravel companies wanting to open or expand a mine are opposed by neighbors objecting to the noise and dust, they point to a 2016 consultant’s study, commissioned by the Michigan Department of Transportation (MDOT), that says the state is running out of gravel to rebuild its busted roads. But in fact, the Michigan Aggregates Association (MAA) – the lobbying organization for the sand and gravel industry, which is pushing for legislation that would severely restrict the ability of local governments to deny permits for new or expanded gravel mines – was behind the study, records show. The MAA recommended the consultant MDOT hired, set out the scope of work and how to price the study, and even spelled out the expected findings. The group also had a role in initiating the study.

Missouri – Free Acupuncture and Eye Exams for Lawmakers Are No-Nos, Missouri Ethics Commission Says
St. Louis Post-Dispatch – Jack Suntrup | Published: 6/3/2019

Two opinions from the Missouri Ethics Commission, which read as lists of dos-and-don’ts for lawmakers and their employees, were issued in response to questions following the passage of Amendment 1 last year. One of the provisions of what is known as “Clean Missouri” limits lobbyist gifts to five dollars. Accepting engraved plaques worth more than five dollars from lobbyists or organizations that lobby is prohibited, the commission said. It also said lawmakers should avoid free use of conference rooms owned by organizations that retain lobbyists. The opinion outlines a number of other scenarios in which lawmakers or their staffs may face ethical dilemmas.

New Jersey – Murphy Officials ‘Seriously Mishandled’ Katie Brennan Assault Allegation, Inquiry Finds
Bergen Record – Dustin Racioppi | Published: 6/5/2019

New Jersey Gov. Phil Murphy’s staff “seriously mishandled” a sexual assault claim by not investigating it and not telling Murphy before the hiring of the alleged assailant – details of which remain a mystery – for a top position, a legislative inquiry has found. The report by the Select Oversight Committee chronicles a series of missteps made by some of the highest-ranking officials in Murphy’s orbit in response to the allegation, made by former campaign volunteer Katie Brennan, and calls into question the “competence and culture of state government as a whole.” Brennan, now a housing official in the administration, had accused Al Alvarez, a former Murphy aide, of sexually assaulting her during the 2017 campaign. Alvarez was not charged and has denied the allegation.

New York – Nassau County Implements New Ethics Rules
Newsday – Candice Ferrette | Published: 6/5/2019

Nassau County Executive Laura Curran signed new rules for county vendors, including a ban on gifts to county procurement officials, aimed at stemming contracting abuses that were central to federal corruption cases involving prominent local officials. Under the new Vendor Code of Ethics, county employees involved with contracting cannot accept gifts “of any kind” from vendors, “no matter how small.” Contractors also cannot discuss or offer jobs to county employees involved with procurement or to their family members. Under the new rules, vendors will be required to certify they have read and accepted the terms of the ethics code and have distributed it to all subcontractors and suppliers.

Rhode Island – The Providence Mayor Raised Thousands of Dollars for a Nonprofit with Ties to His Campaign, Then He Reimbursed Himself from Its Coffers
Boston Globe – Dan McGowan | Published: 6/6/2019

Providence Mayor Jorge Elorza raised hundreds of thousands of dollars for a nonprofit organization with close ties to his political campaign and one that later reimbursed him and other high-ranking city employees for travel expenses to conferences all over the country. Now, the practice of soliciting donations for the Providence Tourism Fund – often from law firms and other companies that have contracts with the city – has come under fire from watchdogs who say Elorza is sidestepping Rhode Island’s strict campaign finance laws so he can collect unlimited amounts of money from corporations. Elorza did not create the fund. It was established in 2009 to raise money for a national conference that was held in Providence, but he has been far more aggressive about using it for travel than his predecessors.

Campaign Finance

Connecticut: “Senate Takes Late-Night Jab at Elections Watchdog” by Mark Pazniokas for Connecticut Mirror

Vermont: “Attorney General Clears Matt Dunne Over Campaign Debt Repayment” by Colin Meyn for VTDigger.org

Elections

National: “Meet the GOP Operatives Who Aim to Smear the 2020 Democrats – but Keep Bungling It” by Manuel Roig-Franzia and Beth Reinhard (Washington Post) for MSN

North Carolina: “Federal Investigators to Examine Equipment from 2016 N.C. Election Amid Renewed Fears of Russian Hacking” by Neena Satija (Washington Post) for Laredo Morning Times

Ethics

Alabama: “At Hubbard Hearing, Alabama Supreme Court Justices Suggest Ethics Law May Be Vague” by Brian Lyman for Montgomery Advertiser

California: “Oakland Councilwoman Claims Free Warriors Tickets; Staff Error Blamed” by John Woolfolk for San Jose Mercury News

Lobbying

National: “Catholic Church Spent $10 Million on Lobbyists in Fight to Stymie Priest Sex Abuse Suits” by Corky Siemaszko for NBC News

National: “How Payday Lenders Spent $1 Million at a Trump Resort – and Cashed In” by Alice Wilder (WNYC) and Anjali Tsui for ProPublica

Missouri: “Pot Lobbyist Indicted in Federal Marijuana Conspiracy Tied to Old Hawthorne Death” by Jack Suntrup (St. Louis Post-Dispatch) for Columbia Missourian

National/Federal

A Hefty Donation to Trump’s Inaugural Comes Under Scrutiny
AP News – Richard Laudner | Published: 5/27/2019

Real estate mogul Franklin Haney contributed $1 million to President Trump’s inaugural committee and all he has to show for the money is the glare of a federal investigation. The contribution from Haney, a prolific political donor, came as he was seeking regulatory approval and financial support from the government for his bid to acquire the mothballed Bellefonte Nuclear Power Plant in Alabama. More than two years later, he still has not closed the deal. Haney’s donation to the inaugural committee is being scrutinized by federal prosecutors in New York who are investigating the committee’s finances. Their probe is focused in part on whether donors received benefits after making contributions.

Anti-Corruption Group Hits Congress for Ignoring K Street, Capitol Hill ‘Revolving Door’
The Hill – Mike Lillis | Published: 5/29/2019

An international anti-corruption group is criticizing Congress for what it considers an ongoing failure to restrict the “revolving door” between K Street and Capitol Hill. The Group of States Against Corruption, an offshoot of the Council of Europe of which the U.S. is a participant, charged that while Congress has taken steps to restrict influence peddling by sitting lawmakers, it has failed to put similar restrictions on those who migrate to the lobbying world upon leaving office. Watchdogs were quick to pile on, noting Congress has not enacted any new restrictions on the “revolving door” since 2007, when it adopted the Honest Leadership and Open Government Act.

Congressional Panel Calls for Lobbying Disclosure Reforms
The Hill – Alex Gangitano | Published: 5/23/2019

A bipartisan select committee is sending Congress a proposal on how to modernize the lobbying disclosure system. The Select Committee on the Modernization of Congress voted on recommendations they said would improve transparency for lobbyists, part of a larger package of congressional reforms the panel approved. The recommendations will be drafted into legislation and sent to the appropriate committees. Primarily it seeks to standardize how the disclosure system files and tracks the names of lobbyists, by giving each lobbyist a unique identifier. In addition, the House Clerk’s office would clarify and simplify the lobbying registration and disclosure process, to make filing the required paperwork easier.

Deceased G.O.P. Strategist’s Hard Drives Reveal New Details on the Census Citizenship Question
New York Times – Michael Wines | Published: 5/30/2019

After Thomas Hofeller died last summer, his daughter found hard drives in his home that revealed he played a crucial role in the Trump administration’s decision to add a citizenship question to the 2020 census. Hofeller was prominent in Republican circles as the architect of partisan political maps that cemented the party’s dominance across the country. Files on those drives showed he wrote a study concluding that adding a citizenship question to the census would allow Republicans to draft even more extreme gerrymandered maps to stymie Democrats. He wrote the key portion of a draft Justice Department letter claiming the question was needed to enforce the Voting Rights Act, the rationale the administration later used to justify its decision. Those documents have emerged only weeks before the U.S. Supreme Court is expected to rule on the legality of the citizenship question.

Emails, Letters Detail Prosecution’s Case against Greg Craig
Politico – Josh Gerstein | Published: 5/29/2019

Federal prosecutors have laid bare more of their most compelling evidence that former White House counsel Gregory Craig lied to and misled authorities about his work for Ukraine, but the newly disclosed proof also highlights one of the most glaring weaknesses in the government’s case. In court filing, prosecutors included copies of internal emails Craig sent to colleagues at his then-law firm Skadden Arps, as well as drafts of a letter he prepared for the Justice Department in response to its request that the firm register as an agent for Ukraine under the Foreign Agents Registration Act. Prosecutors said the letters and emails show Craig crafting a false narrative that understated his involvement in distributing to the media a 2012 report Skadden prepared on the corruption trial of Yulia Tymoshenko.

Faked Pelosi Videos, Slowed to Make Her Appear Drunk, Spread Across Social Media
MSN – Drew Harwell (Washington Post) | Published: 5/24/2019

Distorted videos of House Speaker Nancy Pelosi, altered to make her sound as if she is drunkenly slurring her words, are spreading rapidly across social media, highlighting how political disinformation that clouds public understanding can now grow at the speed of the Web. The video of Pelosi’s onstage at a Center for American Progress event, in which she said President Trump’s refusal to cooperate with congressional investigations was tantamount to a “coverup,” was subtly edited to make her voice sound garbled and warped. It was then circulated widely across Twitter, YouTube, and Facebook. The videos raised concerns about the roles of digital manipulation, misleading videos, and misinformation in politics going forward, particularly in the lead-up to the 2020 election.

FEC Approves Free Cybersecurity for Campaigns Despite Influence Concerns
Lewiston Sun Journal – Joseph Marks (Washington Post) | Published: 5/23/2019

The FEC gave the go-ahead to a nonprofit organization seeking to offer free cybersecurity services to political campaigns, upending rules that typically consider such free services illegal campaign contributions. The agency’s reasoning was that it ordinarily bans such services due to the possibility people might try to cash in on political favors later. But in this case, the risk of Russian and Chinese hackers running roughshod over the 2020 elections is far worse. The nonprofit Defending Digital Campaigns, which made the appeal, now plans to run cybersecurity boot camps for staffers on presidential and congressional campaigns.

Freshman Lashes Out After House Ethics Rules Bar Promoting Bone Marrow Drive
Roll Call – Katherine Tully McManus | Published: 5/29/2019

U.S. Rep. Katie Porter learned recently that one of her constituents, Liyna Anwar, needed help finding a donor in her fight against myeloid leukemia. After her aides reached out to the House ethics committee, Porter learned she could not promote any of the nine bone marrow registry events happening in California on May 31, where Anwar’s possible match could join the database of donors. House rules include a blanket prohibition on lawmakers promoting events held by private entities, including nonprofits. That includes DKMS, an international organization that advocates for more people to register as blood stem cell donors. Now Porter is questioning whether rules designed to prevent misuse of taxpayer dollars need to be reviewed.

‘He Always Brings Them Up’: Trump tries to steer border wall deal to North Dakota firm
MSN – Nick Miroff and Josh Dawsey (Washington Post) | Published: 5/23/2019

President Trump has personally and repeatedly urged the head of the U.S. Army Corps of Engineers to award a border wall contract to a North Dakota construction firm whose top executive is a Republican Party donor and frequent guest on Fox News, according to four administration officials. Fisher sued the U.S. government after the Army Corps did not accept its bid to install barriers along the southern border, a contract potentially worth billions of dollars. Trump has latched on to the company’s public claims that a new design and innovative construction method would vastly speed up the project and deliver it at far less cost to taxpayers. The push for a specific company has alarmed military commanders and Department of Homeland Security officials.

Mueller Suggests Only Congress Can ‘Formally Accuse a Sitting President of Wrongdoing’
Anchorage Daily News – Matt Zapotosky, Devlin Barrett, and Felicia Sonmez (Washington Post) | Published: 5/29/2019

Special counsel Robert Mueller reiterated that his office could not clear President Trump of obstructing justice, asserting in his first public remarks about his investigation that federal prosecutors cannot accuse a president of a crime. Mueller, who noted he was closing his office and formally resigning from the Justice Department, said he hoped the news conference would be his last public comments and if he were compelled to testify before Congress, he would not speak beyond what he wrote in his report. He also said while Justice Department policy prohibits charging a sitting president with a crime, the Constitution provides for another process to formally accuse a sitting president of wrongdoing, a clear reference to the ability of Congress to begin impeachment proceedings.

Republicans Spend More Than $4 Million at Trump Properties
The Hill – Reid Wilson | Published: 5/24/2019

Republican candidates and campaign committees have spent more than $4 million at hotel, golf, and other properties that bear President Trump’s name since he was inaugurated in 2017. More than three dozen members of Congress have held fundraisers or spent the night at Trump properties. Watchdogs have raised concerns over the propriety of Trump profiting off businesses as foreign governments and corporate interest groups currying favor in Washington book rooms at Trump hotels. There is nothing in the Constitution that bans a campaign from spending money at a company that benefits a candidate. But those good-government groups say the mixture of business and politics creates a combustible potion. “The behavior itself is corrupting, and it’s creating corruption and the appearance of corruption,” said Meredith McGehee, executive director of Issue One, a group that advocates for ethics in government.

September Debate Rules Could Winnow 2020 Democratic Field
Washington Post – Michael Scherer | Published: 5/29/2019

The Democratic National Committee announced new criteria for the party’s September presidential debate that could dramatically winnow the sprawling field of 23 candidates, raising the stakes on the summer campaign season. To appear in the party’s third debate, candidates will have to earn two percent support in four party-sanctioned polls between late June and August. In addition, they will have to show they have attracted at least 130,000 donors since the start of the campaign, including at least 400 from 20 different states. As the race now stands, only eight candidates in the field would meet the two percent threshold in recent party-sanctioned polls. Many are also struggling to reach the donor requirements.

Transportation Secretary Failed to Sever Financial Ties to Construction Company
New York Times – Eric Lipton | Published: 5/28/2019

Transportation Secretary Elaine Chao failed last year to cash out her stock options in one of the nation’s largest suppliers of highway construction materials, despite a promise she had made to do so in a signed ethics agreement when she joined the Trump administration. Chao had served for about two years on the board of directors of the company, Vulcan Materials. She owned this stock because in April 2018 Vulcan paid her for her stock options in the company instead of cash. A Transportation Department official said there was no ethics violation because Chao continued to recuse herself from any agency decisions directly related to the company. Vulcan is mentioned as one of the stocks that would benefit from any big increase in federal infrastructure spending.

From the States and Municipalities

Arizona – Chevron Executive Is Secretly Pushing Anti-Electric Car Effort in Arizona
Arizona Republic – Ryan Randazzo | Published: 5/28/2019

A California lobbyist for Chevron Corp. is urging retirees of the oil company in Arizona to oppose electric-car policies there, saying the vehicles are too expensive for most people and should not be promoted. A handful of people who either retired from Chevron or from Unocal, which Chevron acquired in 2005, have used the form letter to urge Arizona Corporation Commissioners not to require electric companies here to build electric-car charging stations. Form letters are commonly used to lobby commissioners, but the secretive nature of this campaign has drawn criticism, including from a retiree who alerted commissioners to the lobbyist’s effort.

Arizona – Hot Mic Captures GOP Lawmakers’ Frustration with Colleagues Over State Budget
Arizona Republic – Rachel Leingang, Lily Altivina, and Yvonne Winget Sanchez | Published: 5/23/2019

Arizona House Republicans were caught on a hot microphone discussing how to penalize two of their colleagues for not going along with the state budget. An audio clip of the meeting features multiple members of the House GOP suggesting bills from two lawmakers not get hearings next year. The clip also suggests some lawmakers could be interested in pursuing an ethics inquiry involving state Sens. Paul Boyer and Heather Carter. “I’ve got kids …. Once you give in and there are no repercussions, you’ve encouraged all kinds of bad behaviors. There has to be repercussions of some kind,” House Ways and Means Committee Chairperson Ben Toma said.

Arkansas – Former Arkansas Senator Case Shows Gray Area in Ethics Rules
Arkansas Democrat-Gazette – Lisa Hammersly | Published: 5/26/2019

As federal prosecutors see it, a series of payments to former Arkansas Sen. Jeremy Hutchinson by former executives of Preferred Family Healthcare constituted bribery. Prosecutors say Hutchinson deposited the money before he filed an amendment to a bill that appeared to benefit the nonprofit. Hutchinson supporters have argued those checks and others like them were lawful compensation for services performed by the Little Rock lawyer outside of his legislative duties. After a string of corruption investigations targeted a half-dozen former state lawmakers, the Legislature has embraced new ethics-related laws. One focus has been a relatively unregulated practice in Arkansas politics: payments by lobbyists and their companies to lawmakers’ businesses, including their law and consulting firms.

Colorado – $120 Million in Requests and $40 Million in the Bank. How an Obscure Theory Helped Prioritize the Colorado Budget.
Colorado Sun – Brian Eason | Published: 5/28/2019

Midway through Colorado’s 2019 legislative session, the appropriations committees in each chamber faced backlogs totaling more than 100 bills carrying a cumulative price tag of more than $120 million. The supporters for each bill were fighting for a piece of the same $40 million that budget writers set aside. The limited pot of money forced unenviable decisions for the Democratic majority with the power to set spending priorities. To find an answer, Democrats attempted a novel approach to public policy: quadratic voting. The obscure economic theory is designed to do what seems impossible at the Capitol – limit the influence of politics and self-interest. The experiment made the Colorado House one of the nation’s first test cases for the theory in the political realm.

Illinois – Illinois Video Gambling Tax Hike Will Be Decided by Lawmakers with Financial Ties to the Industry
ProPublica – Jason Grotto (ProPublica Illinois) and Dan Mihalopoulos (WBEZ) | Published: 5/28/2019

With the Illinois General Assembly poised to consider a tax hike on video gambling, some key lawmakers and their family members have developed previously undisclosed financial connections to the industry, meaning the fate of any proposal could lie in part on votes of legislators with a stake in the outcome. These ties, coupled with campaign donations by the industry, reveal how video gambling operators are building political influence at a time when the state is desperate to identify much-needed revenue to balance the budget. Those operators hope to block a tax increase, pushing instead to raise the maximum bet and increase the number of machines allowed in each location.

Michigan – 50 States of Financial Disclosure: How Michigan stacks up
MLive.com – Lauren Gibbons and Taylor DesOrmeau | Published: 5/24/2019

Michigan is one of two states, and the only one with a full-time Legislature, with no requirement for state public officials to disclose basic financial information, including income sources, business investments, gifts, and travel compensation. The lack of financial disclosure requirements is one?of the biggest?reasons?Michigan ranked last?in a 2015 report that documented several facets of each state’s transparency laws. Although some form of disclosure is required almost everywhere else in the country, how those documents are tracked, enforced, and made accessible to the public vary widely. Experts say having the information available is a good step towards addressing potential conflicts-of-interest and corruption.

Michigan – Michigan Lobbyist for Polluter Wrote Law Easing Toxic Cleanups, Emails Show
Bridge Michigan – Jim Malewitz and Craig Mauger | Published: 5/29/2019

In a single year, a self-described “lawyer-lobbyist” went from working on behalf of a company accused of poisoning groundwater to writing a law that could weaken Michigan’s standards for pollution cleanups. A media investigation found attorney Troy Cummings last year represented Wolverine Worldwide in behind-the-scenes negotiations concerning litigation brought against the company by then-state Attorney General Bill Schuette over contamination from one of the company’s tanneries. At the same time, Cumings was involved with fundraising accounts tied to Schuette, who was running for governor. Emails also show Cumings, a lobbyist from Warner Norcross and Judd, later helped write legislation that makes it more difficult for state environmental regulators to update pollution cleanup standards for hundreds of chemicals.

New York – Connections Can Mean Business for Some Lobbyists, Records Show
Newsday – Michael Gormley | Published: 5/25/2019

Lobbyists and legislators said Bolton-St. Johns, Patrick B. Jenkins & Associates, and the Parkside Group are among what one veteran lobbyist called “the flavors of month” in New York’s $261 million lobbying industry – firms that attract clients and higher fees at least in part because of their relationships with state officials. There always have been a few lobbying firms with such relationships, which can ebb and flow with whomever is in power. But outside the system, there is concern. “It may be that money doesn’t buy politicians, but it certainly buys access and people without money don’t have that access,” said Peter Galie, professor emeritus of political science at Canisius College. “The appearance of power is a form of power.”

New York – ‘So Completely Compromised’: New York watchdog agencies Have a credibility problem
Gotham Gazette – Samar Khurshid | Published: 5/29/2019

Created to monitor the behavior of more than 250,000 public officials and to enforce state lobbying laws, the Joint Commission on Public Ethics (JCOPE) has become the epitome of New York state’s lax ethical oversight, and the agency’s opacity is a source of widespread consternation. As is the case with other watchdog entities, JCOPE must balance the privacy of individuals against its duty to inform the public and instill confidence it is effectively carrying out its work. By design, many of these agencies are not required to inform the public about the complaints they receive or are prohibited from doing so to prevent reputational harm against individuals or entities that may be the subject of a complaint. But good government groups say that must change in order to build trust in institutions, and the public would be better served if agencies provided more transparency about how they handle complaints and report on outcomes of investigations.

Tennessee – How a Large-Scale Effort to Register Black Voters Led to a Crackdown in Tennessee
Tulsa World – Amy Gardner (Washington Post) | Published: 5/24/2019

The Tennessee Black Voter Project took credit for turning in more than 90,000 voter registration applications in 2018. But the surge of forms that landed in the months before Election Day was chaotic and consuming, according to elections officials. Thousands of applications had errors or omissions, they said, and their workers were overwhelmed by the task of verifying all the forms. A new law that takes effect on October 1 will impose fines on groups that employ paid canvassers if they submit incomplete or inaccurate voter registration forms. The fallout is part of a national clash between the two parties over access to the polls – one fueled by efforts on the left to expand the voting pool and new limits backed by Republican lawmakers, who often echo President Trump’s unsubstantiated claims of widespread fraud.

Campaign Finance

Arkansas: “Political Activist Sues State Over Campaign Giving” by Linda Satter for Northwest Arkansas Democrat-Gazette

Elections

National: “September Debate Rules Could Winnow 2020 Democratic Field” by Michael Scherer for Washington Post

Ethics

National: “Transportation Secretary Failed to Sever Financial Ties to Construction Company” by Eric Lipton for New York Times

National: “Freshman Lashes Out After House Ethics Rules Bar Promoting Bone Marrow Drive” by Katherine Tully McManus for Roll Call

National: “As He Exits, Mueller Suggests Only Congress Can ‘Formally Accuse a Sitting President of Wrongdoing’” by Matt Zapotosky, Devlin Barrett, and Felicia Sonmez for Washington Post

Canada: “SNC-Lavalin Headed to Trial on Corruption Charges After Judge Finds Evidence Against Company Sufficient” by Gabriel Freidman for Financial Post

Illinois: “Illinois Video Gambling Tax Hike Will Be Decided by Lawmakers with Financial Ties to the Industry” by Jason Grotto (ProPublica Illinois) and Dan Mihalopoulos (WBEZ) for ProPublica

Montana: “Court: Montana ethics complaints are public information” by Matt Volz for AP News

New Mexico: “State Closes Book on Pay-to-Play Scandal” by Mike Gallagher for Albuquerque Journal

New York: “‘So Completely Compromised’: New York watchdog agencies Have a credibility problem” by Samar Khurshid for Gotham Gazette

Tennessee: “19 Days of Turmoil: Inside Glen Casada’s fall as Tennessee House speaker” by Joel Ebert and Natalie Allison for The Tennessean

Lobbying

National: “Anti-Corruption Group Hits Congress for Ignoring K Street, Capitol Hill ‘Revolving Door’” by Mike Lillis for The Hill

Gov. Larry Hogan allowed two election law bills to become law without his signature.

House Bill 878 alters fees due for failure to file campaign finance reports or affidavits.

The bill raises the fees from $10 each day a report or affidavit is overdue to $20 for each of the first seven days.

Thereafter, the fee increases to $35 for the next seven days, and $50 for each day after that.

The maximum fee for overdue reports or affidavits has also been raised from $500 to $1,000.

House Bill 1025 authorizes the state administrator of elections or the state administrator’s designee to investigate potential violations of coordinated expenditure provisions.

The bill also authorizes the administrator to, in furtherance of an investigation, issue a subpoena for the attendance of a witness to testify.

The state administrator may also subpoena for the production of records.

House Speaker Mike Turzai announced a special election for House District 85 on August 20.

The seat is vacant after Fred Keller won a special election to fill the U.S. House District 12 seat.

The winner of the special election will complete Keller’s term until November 30, 2020.