Federal:

Despite a Trust, Ivanka Trump Still Wields Power Over Her Brand
New York Times – Rachel Abrams | Published: 3/20/2017

Ivanka Trump, who moved to Washington saying she would play no formal role in her father’s administration, is now officially setting up shop in the White House. The powerful first daughter has secured her own office on the West Wing’s second floor. She is also in the process of obtaining a security clearance and is set to receive government-issued communications devices. In everything but name, Trump is settling in as what appears to be a full-time staffer in her father’s administration, with a broad and growing portfolio, except she is not being sworn in, will hold no official position, and is not pocketing a salary, her attorney said. Watchdogs immediately questioned whether she is going far enough to eliminate conflicts-of-interest, especially because she will not be automatically subjected to certain ethics rules while serving as a de facto White House adviser.

Ethics Watchdogs Make a Career of It
Roll Call – Kate Ackley | Published: 3/16/2017

Norm Eisen, President Barack Obama’s White House ethics czar, and Richard Painter, an ethics lawyer from the George W. Bush administration, have teamed up to become two of the most vocal critics of President Donald Trump’s conflicts-of-interest. They not only sued the president within days of his inauguration, they have also appeared regularly on television and testified on Capitol Hill. Though government ethics law may seem a lonely pursuit, leading a resistance against the Trump team’s web of potential ethics woes clearly is not. “I never imagined that White House ethics experts would be in such demand,” Eisen said.

From the States and Municipalities:

Florida – Will Legislators Lift the Veil on ‘Dark Money’ in Florida Politics?
Bradenton Herald – Mary Ellen Klas (Miami Herald) | Published: 3/19/2017

In the ramp-up to the annual legislative session, before the self-imposed fundraising ban takes effect, Florida’s most politically powerful corporations seed hundreds of thousands of dollars in campaign cash into the committees of legislators. But getting all the details on who got what is impossible. Florida law allows groups that accept contributions from corporations to legally distribute money to other political committees, including those controlled by legislators, without reporting the original source of the cash. The practice of shielding political spending from public view has fueled the “dark money” trend in politics that has allowed groups to launch political attacks in campaigns without fear of being traced.

Illinois – Emails to Emanuel Raise Questions About Dozens of Possible Lobbying Violations
Chicago Tribune – Bill Ruthhart and Hal Dardick | Published: 3/21/2017

The Chicago Tribune reviewed over 2,600 pages of Mayor Rahm Emanuel’s personal emails, and found 26 instances where lobbyists, corporate executives, and longtime Emanuel associates and campaign donors sought action from, or access to, the mayor or city officials but did not register as a lobbyist or report their contact to the city ethics board. Some of those who sent emails pitching their business said they did not believe their actions qualified as lobbying or they were not familiar with the city’s ethics rules. But if the board determines someone sought to influence City Hall action but did not register as a lobbyist, it can fine the individual $1,000 per day from five days after the initial contact until they register.

Massachusetts – Construction Firm, Owner Pay $150,000 for Campaign Finance Violations
Boston Globe – Frank Phillips | Published: 3/22/2017

A Massachusetts business owner and his construction company have paid $150,000 for disguising the true source of campaign contributions. The Office of Campaign and Political Finance said J. Derenzo Companies gave $37,000 to employees and their family members to reimburse them for donations they made to nine candidates, including Gov. Charlie Baker and former Gov. Deval Patrick. The contributions were reported as coming from the individuals. State law prohibits disguising the true origin of a donation and bans corporate contributions. The company and its owner, David Howe, agreed to pay $125,000 to the state’s general fund. Howe also gave $25,000 to a charity with personal funds as part of the agreement.

Mississippi – Politicians Will See Campaign Spending Curbed
Hattiesburg American – Geoff Pender | Published: 3/22/2017

The Mississippi Legislature passed a campaign finance reform measure that would restrict politicians’ spending campaign money on personal expenses and provide for some enforcement and oversight by the state Ethics Commission. Gov. Phil Bryant is expected to sign the bill into law, to take effect January 1. Experts have called Mississippi’s lack of rules and transparency on campaign money – and allowing it to be used for personal expenses – “legalized bribery,” with special-interest cash making its way into politicians’ pockets after it runs through their campaign accounts. Campaign money is shielded from tax, ethics, bribery, and other laws because it is ostensibly to be used for campaigning and records of it are supposed to be open to the public.

New Mexico – Voters Will Decide Future of State Ethics Commission Proposal
New Mexico Politics – Steve Terrell (Santa Fe New Mexican) | Published: 3/16/2017

New Mexico voters will decide next year whether to create an independent ethics commission to shore up trust in government after a string of corruption scandals. The Legislature approved a constitutional amendment that calls for creating a seven-member body to investigate ethics violations and apply sanctions. The vote capped a decades-long effort by government watchdog groups and select lawmakers to put ethics complaints in the hands of an independent authority.

New York – Lobbyist in Libous Case Reaches $10k Settlement, as Legal Questions Remain
Albany Times Union – Chris Bragg | Published: 3/17/2017

Lobbyist Fred Hiffa, whose firm made payments to a law firm employing the son of late New York Sen. Thomas Libous at a time it regularly lobbied the once-influential politician, agreed to pay $10,000 to settle ethics charges. The Joint Commission on Public Ethics (JCOPE) said Hiffa arranged for payments totaling $50,000 over one year to the law firm that employed Libous’ son. Libous was convicted of lying to the FBI about his son’s arrangement. But some legal experts said the gift ban law at the center of JCOPE’s case does not seem to apply to the Libous matter, as well as the case of former Sen. Dean Skelos, who was convicted on corruption charges relating to companies hiring his son.

New York – No Charges, but Harsh Criticism for Mayor de Blasio
New York Times – William Rashbaum | Published: 3/16/2017

Prosecutors said New York City Mayor Bill de Blasio and his aides will not face criminal charges for their role in soliciting donations for the mayor’s campaign and an affiliated nonprofit group, the Campaign for One New York. The investigation involved accusations that de Blasio and his aides gave favorable treatment to donors who contributed to his 2013 mayoral election campaign. Also at issue is whether the de Blasio team illegally raised money for several key state senate races. Acting U.S. Attorney Joon Kim said the decision not to file charges was based, among other things, on the high burden of proof required in prosecuting serious public corruption cases, the clarity of existing law, and the difficulty in proving criminal intent in corruption schemes where there is no evidence of personal profit.

North Carolina – Judges Issue Split Ruling on NC Governor-Legislature Power Struggle
Charlotte Observer – Anne Blythe (Raleigh News & Observer) | Published: 3/17/2017

A three-judge panel delivered a mixed decision in the power struggle between Gov. Roy Cooper and legislative leaders in North Carolina. The General Assembly passed two laws that require Senate confirmation of Cooper’s cabinet secretaries, cut the number of state positions to which the governor can appoint supporters, and overhauled the structure of North Carolina’s state and county elections boards. The panel agreed with Cooper that the law calling for combining the State Board of Elections and the State Ethics Commission was unconstitutional. The judges also ruled that a provision cutting the number of at-will policy-making and managerial positions in Cooper’s administration should be blocked. The judges upheld the Senate’s right to confirm the governor’s cabinet secretaries, saying Cooper has not demonstrated his administration will be hurt by the law.

Oklahoma – Oklahoma State Senator Faces Charges and Condemnation
New York Times – Matthew Haig | Published: 3/17/2017

Oklahoma Sen. Ralph Shortey was accused in a child prostitution case of offering to pay a 17-year-old boy for sex. Shortey was charged with three felony counts one week after police found him with the teenager in a hotel room. The maximum punishment, if convicted, is 25 years in prison. The Senate voted to punish Shortey for “disorderly behavior.” The unanimous vote stripped him of most of his privileges at the Capitol, including his office and parking space.

Pennsylvania – D.A. Seth Williams Indicted on Corruption, Bribery-Related Charges
Philadelphia Inquirer – Jeremy Roebuck, David Gambacorta, and Chris Brennan | Published: 3/21/2017

Philadelphia’s top prosecutor was charged with taking more than $160,000 in luxury gifts, Caribbean trips, and cash, often in exchange for official favors that included help with a court case, according to a bribery and extortion indictment. Federal prosecutors said District Attorney Seth Williams also spent $10,000 from a joint account he shared with a relative meant for the relative’s nursing home costs. The indictment caps a nearly two-year investigation into Williams’ financial affairs. In January, the city Board of Ethics imposed its largest fine ever, $62,000, on Williams for failing to disclose gifts and sources of income, and accepting gifts from prohibited sources.

Pennsylvania – Former Top Allentown Bureaucrat Francis Dougherty Pleads Guilty, Implicates Mayor
Allentown Morning Call – Emily Opilo | Published: 3/22/2017

Former Allentown Managing Director Francis Dougherty pleaded guilty to a conspiracy charge in an ongoing FBI “pay-to-play” corruption probe. Prosecutors say Dougherty helped rig a $3 million contract to replace the city’s streetlights so it would go to a company whose executives and consultants gave thousands of dollars in campaign contributions to Mayor Ed Pawlowski. The mayor has not been charged, but he matches the description of the unnamed public official in court papers. As part of his plea deal, Dougherty must continue to cooperate with prosecutors concerning his knowledge of and participation in political corruption in Allentown.

South Carolina – Veteran State Sen. Courson of Columbia Suspended from Office after Misconduct Indictment
The State – John Monk | Published: 3/16/2017

One of South Carolina’s longest-serving senators has been indicted on ethics charges tied to veteran powerbroker Richard Quinn. A grand jury indicted Sen. John Courson on misconduct in office and using campaign donations for personal expenses. All three charges are tied to Courson’s payments to Quinn’s political consulting firm. Lt. Gov. Kevin Bryant suspended Courson pending the case’s resolution. The indictments allege Courson gave Quinn’s firm nearly $248,000 and received back nearly $133,000 for personal use. The Quinn firm has not been charged with any wrongdoing.

Texas – Dallas City Council Overhauls Ethics Rules; Mayor Mike Rawlings Lauds Changes as ‘Remarkable’
Dallas News – Tristan Hallman | Published: 3/22/2017

The Dallas City Council approved changes to the ethics law. The reforms include lowering the gift-reporting threshold to $250, requiring attorneys and law firms representing clients – along with leaders of associations – to register as lobbyists, and prohibiting city council members from discussing ongoing contract bids. Council members voted down several of their colleagues’ attempts to include additional changes. The ordinance will take effect on July 1, 2017.

State and Federal Communications produces a weekly summary of national news, offering more than 60 articles per week focused on ethics, lobbying, and campaign finance.

Campaign Finance

Massachusetts: “Construction Firm, Owner Pay $150,000 for Campaign Finance Violations” by Frank Phillips for Boston Globe

Pennsylvania: “Former Top Allentown Bureaucrat Francis Dougherty Pleads Guilty, Implicates Mayor” by Emily Opilo and Peter Hall for Allentown Morning Call

Ethics

“New Trump Hotels Face Political Fights, Ethics Questions” by Bernard Condon and David Koenig (Associated Press) for ABC News

“Betsy DeVos’s Hiring of For-Profit College Official Raises Impartiality Issues” by Patricia Cohen for New York Times

“Protesting at Lunchtime: Defying Trump becomes a Washington lifestyle” by Katie Rogers for Washington Post

Nebraska: “State Regulator’s Side Job Appears to Violate Oath of Office, Lawmaker Says” by Zach Pluhacek for Lincoln Journal-Star

Texas: “Dallas City Council Overhauls Ethics Rules; Mayor Mike Rawlings Lauds Changes as ‘Remarkable’” by Tristan Hallman for Dallas News

Elections

“FBI’s Russian-Influence Probe Includes a Look at Breitbart, InfoWars News Sites” by Peter Stone and Greg Gordon for McClatchy DC

Colorado: “Ex-Colo. GOP Leader Said Only Democrats Committed Voter Fraud. Now He’s Charged with Voter Fraud.” by Derek Hawkins for Washington Post

New York: “A Contest to Design New York City’s Next ‘I Voted’ Sticker” by Sarah Maslin Nir for New York Times

Lobbying

Missouri: “Greitens’ Reliance on ‘Dark Money’ Endangers Proposed Ban on Lobbyist Gifts” by Jason Hancock for Kansas City Star

Campaign Finance

Arizona: “Utility Regulators Vote 3-1 to Let APS Slide on Political Finance Records” by Ryan Randazzo for Arizona Republic

Florida: “Will Legislators Lift the Veil on ‘Dark Money’ in Florida Politics?” by Mary Ellen Klas (Miami Herald) for Bradenton Herald

Maine: “Lawmakers Propose Reeling Back Reporting Requirements” by Marina Villeneuve (Associated Press) for U.S. News & World Report

Ethics

“White House Installs Political Aides at Cabinet Agencies to Be Trump’s Eyes and Ears” by Lisa Rein and Juliet Eilperin for Washington Post

“FBI Director Comey Confirms Probe of Possible Coordination Between Kremlin and Trump Campaign” by Ellen Nakashima, Karoun Demirjian, and Devlin Barrett for Washington Post

“Fired U.S. Attorney Preet Bharara Said to Have Been Investigating HHS Secretary Tom Price” by Robert Faturechi for ProPublica

Nevada: “Nevada Assemblywoman Resigns from Consulting Job After Ties to Saudi Arabia Are Revealed” by Ben Botkin for Las Vegas Review-Journal

Oklahoma: “Oklahoma State Senator Faces Charges and Condemnation” by Matthew Haag for New York Times

Rhode Island: “R.I. Gov. Raimondo Goes After ‘Bad Actors’ with Slate of Reforms” by Patrick Anderson for Providence Journal

Elections

“Senators Ask Trump Adviser to Preserve Any Russia-Related Documents” by Maggie Haberman for New York Times

On March 17, a three-judge panel ruled that the North Carolina General Assembly overstepped its state constitutional authority when it adopted Senate Bill 4 establishing a bipartisan board to oversee elections and consider ethics complaints and issues.

The ruling held that lawmakers violated the separation of powers in trying to take control over appointments in the governor’s administration.

Prior to Senate Bill 4, the State Board of Elections and State Ethics Commission were separate entities and the governor had the power to appoint a majority from his own party to preside over elections. Lawmakers could appeal the decision.

Lobbying

“Lobbyists Scramble for Access in Trump Era” by Megan Wilson for The Hill

Missouri: “Missouri House Votes for Local Lobbyist Gift Ban” by Associated Press for Southeast Missourian

Campaign Finance

Kentucky: “Lawmakers Approve Flurry of Bills as End of Legislative Session Looms” by Daniel Desrochers and Jack Brammer for Lexington Herald-Leader

New Mexico: “Legislature Passes Campaign Finance Reform Years in The Making” by Sandra Fish for New Mexico In Depth

Ethics

“The Onion Struggles to Lampoon Trump” by Charles Bethea for New Yorker

“‘People Are Scared’: Paranoia seizes Trump’s White House” by Alex Isenstadt and Kenneth Vogel for Politico

“Trump-Era Republicans Unleash String of Inflammatory Comments” by Elise Viebeck for Washington Post

“Admiral, Seven Others Charged with Corruption in New ‘Fat Leonard’ Indictment” by Craig Whitlock for Washington Post

California: “OC Gets Its First Ethics Director, But No Recruitment Yet for Commission” by Nick Gerda for Voice of OC

Elections

“Prerequisite for Key White House Posts: Loyalty, not experience” by Sharon LaFraniere, Nicholas Confessore, and Jesse Drucker for New York Times

Lobbying

“Icahn’s Ethanol Push Fuels Ethics Storm” by Eric Wolf for Politico

“N.J. Congressman Wants Details on Michael Flynn’s Lobbying Status” by Fredreka Schouten for USA Today

Campaign Finance

Texas: “Ethics Review Commission Weighs Campaign Finance Proposal” by Jack Craver for Austin Monitor

Washington: “House Speaker Hit with Campaign Finance Complaint in Growing Tug-of-War” by Walker Orenstein for The Olympian

Canada: “Political Donations in Canada: A guide to the ‘wild west’ vs. the rest” by Evan Annett and Tu Thanh Ha for The Globe and Mail

Ethics

“With Trump in White House, His Golf Properties Prosper” by Eric Lipton and Susanne Craig for New York Times

Illinois: “Chicago Aldermen Shouldn’t Take Free White Sox Tickets, Ethics Official Says” by John Byrne for Chicago Tribune

Illinois: “BGA Goes Back to Court to Gain Access to Emanuel’s Private Email” by Sun-Times Wire Service for WBBM

New Jersey: “N.J. Moves to Restore Election Watchdog” by Andrew Seidman for Philadelphia Inquirer

Elections

“With Trump in White House, Some Executives Ask, Why Not Me?” by James Stewart for New York Times

Lobbying

“Would-Be Trump Appointees Say ‘No Thanks’ Due to Lobbying Ban” by Ben Brody, Shannon Pettypiece, and Bill Allison for Bloomberg.com

Oregon: “Gov. Brown Reverses Course, Says Former Lawmaker Will Not Lobby Legislators” by Saul Hubbard for The Register-Guard

Campaign Finance

“FEC Earning Congressional Attention – for the Wrong Reasons” by Dave Levinthal for Center for Public Integrity

Ethics

Florida: “Corrupt Opa-locka Official Was a Prized Witness. He Was Rewarded with No Prison Time.” by Jay Weaver for Miami Herald

New Mexico: “Senate Yanks Real Estate Bill; Lawmaker Says Pay-to-Play Maneuver Exposed” by Andrew Oxford (Santa Fe New Mexican) for New Mexico Political Report

New York: “Preet Bharara Shunned Politics. His End Was Tinged by Them.” by Benjamin Weiser, Ben Protess, Matthew Goldstein, and William Rashbaum for New York Times

Utah: “Shurtleff Sues State for at Least $1.1M, Alleges Utah A.G. Sean Reyes Interfered in His Case” by Jennifer Dobner for Salt Lake Tribune

Elections

California: “Seeing Red: Membership triples for the Democratic Socialists of America” by Matt Pearce for Los Angeles Times

Legislative Issues

Minnesota: “Lawmakers Clash Over Ethics of Real ID Letter to the Editor” by Don Davis (Forum News Service) for St. Paul Pioneer Press

Redistricting

Texas: “Texas Congressional Maps Are Struck Down for Discrimination” by Manny Fernandez for New York Times

See what’s happening in government relations this week in our News You Can Use Video Digest. Enjoy!

See what’s happening in government relations this week in our News You Can Use Video Digest. Enjoy!

This month, Gov. Ricardo Rosello approved a nonbinding referendum to determine whether Puerto Rico will continue free association or seek statehood or independence.

The referendum will be held on June 11, 2017, and will give voters the choice between statehood and independence/free association. Previous referendums and plebiscites have given independence and free association as separate options, but the upcoming referendum lumps them together.

If a majority chooses independence/free association, a second referendum will be held in October to determine the preference between those options. If the referendum passes in favor of statehood, Puerto Rico, currently facing $70 billion in public debt, would have access to more federal funding if ultimately approved by the U.S. Congress as the 51st state.

Currently, Puerto Ricans are U.S. citizens but cannot vote in presidential elections and have limited representation in Congress.

Campaign Finance

“Judge Backs Blind FEC Eye on Campaign-Finance Violations” by Tim Ryan for Courthouse News Service

New Jersey: “A $500 Contribution to Republicans Costs Paving Company $7M” by Dave Hutchinson (NJ Advance Media) for NJ.com

Elections

Texas: “Justice Department Changes Its Position in High-Profile Texas Voter-ID Case” by Sari Horwitz for Washington Post

Ethics

“From K Street to Congo: Abramoff’s new adventure” by Anna Palmer, Jake Sherman, and John Bresnahan for Politico

“Who’s Watching Trump’s Ethics Watchdogs?” by Darren Samuelsohn for Politico

New York: “The F.B.I. Questioned de Blasio. Hours Later, This Man Was Fired.” by William Rashbaum, William Neuman, and J. David Goodman for New York Times

Texas: “Political Corruption Trial Kicks off in Dallas” by David Lee for Courthouse News Service

West Virginia: “WV Lawmakers Pass Nepotism Ban” by Eric Eyre for Charleston Gazette

Legislative Issues

“The DNC Isn’t Enough: Democrats demand more leadership changes” by Gabriel Debenedetti and Edward-Isaac Dovere for Politico

Lobbying

Colorado: “How the Charities on Your Colorado Tax Form Used Connections, Money and Legislation to Earn the Coveted ‘Godsend’” by Brian Eason for Denver Post

Campaign Finance

“U.S. Top Court Rejects Challenge to Political Ad Disclosure Rules” by Andrew Chung (Reuters) for U.S. News & World Report

West Virginia: “WV House Bill Requires Fundraiser Reports During 60-Day Session” by Eric Eyre for Charleston Gazette

Wisconsin: “Wisconsin Ethics Commission Records Taken in John Doe Leak Probe” by Patrick Marley for Milwaukee Journal Sentinel

Elections

“Democrats Elect Thomas Perez, Establishment Favorite, as Party Chairman” by Jonathan Martin for New York Times

Ethics

“Trump Inspires Encryption Boom in Leaky D.C.” by Andrew Restuccia and Nancy Cook for Politico

Minnesota: “For Local Officials with Family Ties, Transparency Counts” by Brandt Williams for Minnesota Public Radio

Washington: “Ethics Board Fines Puyallup Lawmaker $5,000 over Facebook Posts” by Melissa Santos for The News Tribune

Lobbying

Florida: “Senator Seeks Probe into Whether Lobbyist Lisa Miller Posed as ‘Concerned Citizen’ During Call” by Michael Malone for Florida Today

Illinois: “Six More Lobbyists Face Fines for Using Emanuel’s Private Emails” by Fran Spielman for Chicago Sun-Times

New York: “Reform Groups Call on Wright to Drop Dual Role” by Chris Bragg for Albany Times Union

Campaign Finance

“Billionaires and Corporations Helped Fund Donald Trump’s Transition” by Carrie Levine for Center for Public Integrity

Canada: “Lobbying Commissioner Probing Fundraiser Hosted by Apotex Chair: Democracy Watch” by The Canadian Press for The Globe and Mail

New Hampshire: “NH Senate Votes to Require Political Advocacy Groups to Register, Report Expenditures” by John DiStaso  for WMUR

Elections

“David Brock, Donors Wade into State Fights” by Kenneth Vogel for Politico

Arizona: “Arizona House Passes Bills to Restrict Citizen Initiatives” by Mary Jo Pitzl  for Arizona Republic

Ethics

“White House Selectively Blocks Media Outlets from Briefing with Spicer” by Hadas Gold for Politico

“Priebus Call to FBI Violated Norms, If Not Rules” by Isaac Arnsdorf for Politico

“Law Professors File Misconduct Complaint Against Kellyanne Conway” by Sari Horwitz for Washington Post

“Bobbleheads, Yes. Official Tweets, No. Federal Workers Wonder Where the Lines Are in the Trump Era.” by Lisa Rein for Washington Post

“Republican Lawmakers Introduce Bills to Curb Protesting in at Least 17 States” by Christopher Ingraham for Washington Post

Kentucky: “Auditors Find Shoddy Management, Conflicts of Interest at Kentucky Horse Park” by Linda Blackford for Lexington Herald-Leader

Missouri: “Missouri Governor Shuns State Plane, Flies at Private Costs” by David Lieb (Associated Press) for Springfield News-Leader

South Dakota: “Flood of Bills Addresses IM22 Provisions” by Bob Mercer for Rapid City Journal

Lobbying

California: “Regulators Investigating SDG&E for Potential Lobbying Violations” by Joshua Emerson Smith in San Diego Union-Tribune

EU: “New Lobbying Rules Face Uncertain Future” by Harry Cooper for Politico

Illinois: “Former Obama Aide Fined $90,000 for Illegally Lobbying Emanuel on Uber’s Behalf” by Bill Ruthhart and Hal Dardick for Chicago Tribune

See what’s happening in government relations this week in our News You Can Use Video Digest. Enjoy!