Campaign Finance

California: “Why Didn’t School Board President Ref Rodriguez Just Write Himself a Big Check?” by David Zahniser, Anna Phillips, and Howard Blume for Los Angeles Times

Santa Fe: “Reform Laws Spurred by Treasurer Scandals Full of Loopholes” by Andrew Oxford for Santa Fe New Mexican

New York: “Board of Elections Probes Ties Between Senate Democrats, Union Super PAC” by Chris Bragg for Albany Times Union

Ethics

“Request Denied: States try to block access to public records” by Andrew DeMillo and Ryan Foley (Associated Press) for San Jose Mercury News

“Trump Declines to Release List of His Mar-a-Lago Visitors” by Eric Lipton for New York Times

“Congress Struggles to Figure Out Which Russia Investigation Trumps the Others” by Erin Kelly for USA Today

California: “OC Ethics Commission Can Now Meet After Third Member is Appointed” by Nick Gerda for Voice of OC

Oregon: “Nepotism Runs Rampant in Oregon Legislature. Here’s How” by Gordon Friedman for Portland Oregonian

Pennsylvania: “Streetlight Executive Sentenced in City Hall Pay-to-Play Case” by Emily Opilo for Allentown Morning Call

The Los Angeles Ethics Commission has recommended multiple changes to the Municipal Lobbying Ordinance.

These changes include increasing the registration threshold from $2,000 to $5,000; expanding the 501(c)(3) organization exemption; amending and adding definitions regarding lobbying; expanding gift restrictions; revising registration statements, deadlines, and fees; creating a bimonthly reporting calendar instead of quarterly; and increasing civil penalties for violations of lobbying laws.

The next commission meeting is on October 17, and comments regarding the proposal can be emailed to ethics.policy@lacity.org.

On September 15, the head of the Office of Government Ethics (OGE) said in an interview with Politico anonymous contributions to legal defense funds of federal employees are prohibited. David Apol, the acting director of the OGE, told Politico the policy had not changed, even though the note on a guidance document had been changed earlier this year.

In 1993, the OGE issued an opinion letter holding a fund established for the benefit of a government employee to pay the employee’s legal expenses, while administered by a person having no connection with the employee’s official duties, could accept anonymous contributions. The OGE guidance letter is not legally binding.

Walter Shaub, then director of the OGE, instructed his staff in May of this year to add a one-sentence note to the top of the document signaling the OGE’s long standing internal practice had diverged from the formal guidance, according to Politico. The note read in all caps and a red font, “NOTE: SOME STATEMENTS IN THIS OPINION ARE NOT CONSISTENT WITH CURRENT OGE INTERPRETATION AND PRACTICE.”

Subsequently, after Shaub left the OGE, the document’s note was changed to read, again in all caps and a red font, “NOTE: THE PRIMARY FINDING ABOUT THE LIMITED APPLICABILITY OF 18 U.S.C. §209 TO PAYMENTS MADE FOR AN EMPLOYEE’S LEGAL EXPENSES HAS NOT CHANGED. HOWEVER, BECAUSE EACH ANALYSIS IS VERY FACT-SPECIFIC, AGENCY ETHICS OFFICIALS SHOULD CONSULT WITH THEIR OGE DESK OFFICER BEFORE ADVISING EMPLOYEES ON THIS TOPIC.”

Critics of the note change had said this opens the door up to lobbyists and other prohibited sources funding legal defenses for employees currently working in the White House.

Campaign Finance

California: “L.A. School Board President Faces Felony Charges Over Campaign Contributions” by Anna Phillips, David Zahniser, and Howard Blume for Los Angeles Times

Michigan: “Campaign Finance Bills Pass Michigan Senate, Give More Power to Big Donors, Critics Say” by Emily Lawler for MLive.com

Pennsylvania: “Former Judge to Admit Payments from Brady Campaign, Lawyer Says” by Chris Brennan and Craig McCoy for Philadelphia Inquirer

Ethics

“Government Ethics Office Says It Will Stick with Ban on Anonymous Gifts” by Darren Samuelsohn for Politico

“Trump Lawyers Clash Over How Much to Cooperate with Russia Inquiry” by Peter Baker and Kenneth Vogel for New York Times

“Trump’s Divisive Presidency Reshapes a Key Part of His Private Business” by David Fahrenthold, Amy Brittain, and Matea Gold for Washington Post

“Trump’s FEC Nominee Has Questioned the Value of Disclosing Political Donors” by Matea Gold for Washington Post

Lobbying

“Mike Flynn’s Son Is Subject of Federal Russia Probe” by Carol Lee, Julia Ainsley, and Ken Dilanian for NBC News

Arkansas: “Lobbyist Got Part of Fees Paid by Bondsmen” by Brian Fanney for Arkansas Online

Colorado: “Big Bucks Flow to Colorado Lobbyist Offices Steps from The Capitol” by Sandra Fish for KUNC

North Carolina: “Lobbyist Faces Investigation after WBTV Uncovered Unregistered Lobbying” by Nick Ochsner (WBTV) for Charlotte Observer

Elections

“How Party Bosses, Not Voters, Pick Politicians in New York” by Shane Goldmacher for New York Times

Legislative Issues

California: “In California’s Capitol, the Real Battles Are Often Between the Assembly and the Senate” by Chris Megerian and Melanie Mason for Los Angeles Times

Missouri: “Missouri Lawmaker Censured over Trump Assassination Post” by Associated Press for Wichita Eagle

After review and finalization, a package of campaign finance code revisions is going to the City Council Governance Committee for approval.

Proposed revisions include language creating a blackout period for owners or top executives of primary bidders on city contracts making contributions to a council campaign within a certain time frame when the contract is out to bid.

Some members of the Ethics Board fear tighter campaign finance laws will decrease political activity and lead to political problems and controversy while others are happy to see steps taken towards transparency.

The committee will meet Sept. 20 to review the proposed changes completed by the City’s Ethics Review Board this week.

Jonathan Spontarelli is here to deliver this week’s News You Can Use from the new Washington D.C. branch of State and Federal Communications!

The Honest Leadership and Open Government Act (HLOGA) of 2007 was enacted 10 years ago. It is a law of the US federal government, which in part, amended parts of the Lobbying Disclosure Act (LDA) of 1995.

What did it do? For one, it strengthened the public disclosure requirements regarding lobbying activity and placed restrictions on gifts. The bill was signed into law by President George W. Bush on September 15, 2007.

In addition, it closed the revolving door for many people in the federal government from lobbying for a certain period of time; it increased the number of reports due a year—from twice a year to four times a year; it prohibited Members of Congress from attending parties held in their honor at national party conventions—if they were sponsored by lobbyists; requires candidates, other than those running for a seat in the House, pay the fair market value of airfare (charter rates) when using non-commercial jets to travel; requires candidates for the House to not use non-commercial aircraft; requires lobbyists to certify they have not given gifts or travel that would violate Senate or House rules; requires the disclosure of businesses or organizations contributing more than $5,000 and actively participating in lobbying activities by certain coalitions and associations; instituted a lot of prohibitions between spouses who are registered lobbyists unless they were registered at least one year prior to the most recent election of the spouse to office; and requires entertainment and sports tickets be valued at market rates.

There is definitely more to HLOGA which affected lobbyists, Members of Congress, Cabinet Secretaries, senior Senate staff, and senior House staff. It is the #1 reason State and Federal Communications strengthened its federal presence in DC by bringing on Rebecca South, formerly from Blank Rome, and Gamble Hayden, formerly from PhRMA and Boehringer Ingelheim. Our FedALERTS program is the key to capturing the information needed for 100% compliance on the federal level.

Will there be changes in the future? Probably…In the meantime, we are celebrating HLOGA today at State and Federal Communications.

National:

How Anna Nicole Smith’s Billionaire In Laws Secretly Lobbied the Courts
Bloomberg.com – Zachary Mider | Published: 9/13/2017

When the heirs of billionaire J. Howard Marshall II, famous for his May-December romance with Playboy centerfold Anna Nicole Smith, went to court in a $75 million tax dispute, they got help from an unlikely ally: Barber-Scotia College, the nation’s first institution of higher learning for black women. Barber-Scotia’s name, along with those of four other historically black colleges and universities, was on a friend-of-the-court brief submitted to the U.S. Court of Appeals for the Fifth Circuit. The brief was part of a campaign by the Marshall family, orchestrated by a Washington, D.C. consulting firm, to influence two of the nation’s highest courts. The campaign shows how it is possible for well-funded litigants to stack the deck by generating phony friends of the court, or by paying advocates who present themselves as independent but are really lobbyists in disguise.

On Facebook and Twitter, a Hunt for Russia’s Meddling Hand
New York Times – Scott Shane | Published: 9/7/2017

The Russian information attack on the election did not stop with the hacking and leaking of Democratic emails. Far less splashy, and far more difficult to trace, was Russia’s experimentation on Facebook and Twitter, the American companies that essentially invented the tools of social media and, in this case, did not stop them from being turned into engines of deception and propaganda. An investigation reveals some of the mechanisms by which suspected Russian operators used Twitter and Facebook to spread anti-Hillary Clinton messages and promote the hacked material they had leaked. Given the powerful role of social media in political contests, understanding the Russian efforts will be crucial in preventing or blunting similar, or more sophisticated, attacks in upcoming elections.

Federal:

Russian Network RT Must Register as Foreign Agent in US
The Hill – Megan Wilson | Published: 9/12/2017

The company that runs the U.S. version of RT, the Russian state-owned outlet originally known as Russia Today, must register with the Justice Department as a foreign agent, signaling that all of their content would be labeled as propaganda from Moscow. Media organizations have been exempted from the Foreign Agents Registration Act, which is wide-ranging in its disclosure requirements and generally applies to political consultants and those working in lobbying or public relations. It would be a felony if RT is found to have willfully failed to register as a foreign agent, however.

From the States and Municipalities:

Colorado
Denver City Council Approves New Rules Requiring Reports of Dark-Money Spending in Elections
Denver Post – Jon Murray | Published: 9/11/2017

The Denver City Council approved a bill that will require the reporting of at least $1,000 in independent spending by individuals, companies, or other organizations to support candidates or ballot issues. Those independent expenditures include any activity aiming to aid or hurt a candidate, including “electioneering communications” such as mailers, broadcast ads, or other advertising. The initial report to the Denver Elections Division, disclosing all expenses and donors above $25, will be required within two days after cumulative spending reaches $1,000.

Illinois
Weighing Third Term, Emanuel Relies on Campaign Donors Who Get City Hall Benefits
Chicago Tribune – Jeff Coen and Bill Ruthhart | Published: 9/8/2017

As Chicago Mayor Rahm Emanuel ramps up his campaign fundraising toward a possible third term, he continues to rely on donors who have received City Hall benefits, ranging from contracts and zoning approvals to appointments and personal endorsements from the mayor. With the mayoral election still a year and a half away, Emanuel has collected $3.1 million in high-dollar contributions. And more than $2.1 million of it, nearly 70 percent, has come from 83 donors who have benefited from actions at City Hall.

Massachusetts
Pro-Charter School Group Pays State’s Largest Campaign Finance Penalty
Boston Globe – Michael Levenson | Published: 9/11/2017

A group that backed last year’s charter school ballot question in Massachusetts paid $426,466 as part of a campaign finance settlement. The payment by Families for Excellent Schools-Advocacy is the largest civil forfeiture in the history of the Office of Campaign and Political Finance. Investigators say the organization violated the law by raising money from individuals and then contributing that money, more than $15 million, to the Great Schools Massachusetts Ballot Question Committee in a manner intended to disguise the source of the money. The group agreed with the IRS to dissolve itself, and Families for Excellent Schools, its umbrella group, agreed not to fundraise or engage in any election-related activity in Massachusetts for four years.

Minnesota
Scott County Attorney Declines Charges in Dai Thao Bribery-Solicitation Case
St. Paul Pioneer Press – Frederick Melo | Published: 9/12/2017

St. Paul City Councilperson Dai Thao will not face criminal charges over an allegation he attempted to solicit a bribe. The Scott County attorney’s office declined to prosecute the claims made against Thao and his former campaign manager, Angela Marlow. The allegations stemmed from a meeting between Thao, lobbyist Sarah Clarke, and some of Clarke’s clients. Clarke said that Thao told the group during the meeting that he needs “resources to spread his message.” She said it seemed clear he was asking for a bribe.

New Mexico
New Campaign Spending Rules to Take Effect
Albuquerque Journal – Dan Boyd | Published: 9/8/2017

Nonprofit advocacy organizations that spend unlimited amount of money to influence elections in New Mexico will have to disclose the names of contributors under rules adopted by state elections officials. The new requirements are set to go into effect on October 10, in time for 2018 primary and general elections, for so-called dark money groups that spend at least $2,500 on a statewide election or ballot measure. New Mexico Secretary of State Maggie Toulouse Oliver said vague and confusing rules are being cleaned up and the changes will “help shine a light on the dark money that has been plaguing our state’s campaigns.”

New York
Firm Uses Loophole to Secretly Donate $60G to de Blasio Campaign, Lobbying Records Show
New York Daily News – James Fanelli | Published: 9/9/2017

Constantinople & Vallone has a reputation as a powerful lobbying firm that gets its clients access to New York City Hall, but what is not so well known is it has helped steer $60,900 in campaign donations to Mayor Bill de Blasio. A loophole in the city’s campaign finance law has allowed the firm to stay under the radar as a fundraiser for the mayor. The only way to know Constantinople & Vallone has raised so much money for de Blasio is through obscure filings with the city clerk’s lobbying bureau.

Oregon
Legislators Consolidate Power, Cash, in Partially Invisible Cycle of Giving to Each Other
Salem Statesman-Journal – Cooper Green | Published: 9/9/2017

If a candidate passes contributions to another candidate, or to a re-election fund for fellow party members, the public can no longer see the money’s original donor. These transactions are known as pass-throughs. Transactions between Oregon legislators, or between lawmakers and re-election funds, are commonplace and have been for decades. An analysis shows legislative officeholders and candidates have utilized this system of pass-throughs more than 2,800 times in the last three election cycles alone, transferring $18.7 million dollars between themselves. Based on the total amount contributed to legislators during that time, this means more than a quarter of all money involved in legislative campaigns has seen more than one lawmaker as it moves through the system.

Pennsylvania
Elect Them, Then Lobby Them: Two firms blur the worlds of policy and politics in Harrisburg
Philadelphia Inquirer – Angela Couloumbis and Liz Navratil | Published: 9/11/2017

For years, lobbying in Pennsylvania was a secretive business, and more recently attracted scrutiny from federal investigators. A decade-old law strengthened registration and reporting requirements for lobbyists and their clients, but the state still lags behind others in transparency and accountability, according to the National Conference of State Legislatures. Among Harrisburg’s high-powered partnerships, only two have well-established campaign arms that, for the last decade, have dominated the market on both electing and lobbying Republicans who drive public policy.

Tennessee
Lobbyists Courted Lawmakers with Free Food, Baseball Tickets at Conferences
The Tennessean – Joel Ebert | Published: 9/11/2017

Under state law, Tennessee lawmakers can accept gifts like dinner and sports tickets at out-of-state conferences, provided they are related to the conference itself. Lobbyists can even pay for events labeled “state night” for lawmakers. And little disclosure is required, unlike the rules in place for how lobbyists interact with lawmakers at the Capitol. The practice at out-of-state conferences is increasingly widespread, including at conferences this year in Boston and Denver, according to interviews with lobbyists, lawmakers, and legislative staff.

Virginia
Virginia Lawmakers Attend Fewest Lobbyist-Paid Entertainment Events Since McDonnell Case
The Virginian-Pilot – Will Houp | Published: 9/7/2017

Virginia lawmakers continue to shrink away from meals, galas, and other entertainment occasions paid for by lobbyists as they attended less than half such events in 2016 and 2017 as they did three years ago. Data from the Virginia Conflict of Interest and Ethics Advisory Council shows a stark difference in what delegates and senators felt comfortable accepting before and after the corruption charges against former Gov. Bob McDonnell. At the same time, several law changes related to lobbyist entertainment have muddied the water in terms of comparing year to year.

Washington
Seattle Mayor Ed Murray Resigns After Fifth Child Sex-Abuse Allegation
Seattle Times – Jim Brunner, Daniel Beekman, and Lewis Kamb | Published: 9/12/2017

Seattle Mayor Ed Murray, beset over the past five months by sex abuse allegations, resigned his office. His announcement came after The Seattle Times reported that a fifth man, one of his cousins, had accused Murray of molesting him decades ago. Though he has denied all the accusations against him, Murray had already decided not to seek re-election. City Council President Bruce Harrell will temporarily serve as mayor and will decide within five days whether to take on the role of acting mayor past the November 7 election. If he demurs, the council will pick another of its members to serve until the election results are certified.

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.

A change of a note regarding an Office of Government Ethics (OGE) guidance document from 1993 may open the door to allowing anonymous contributions, including from prohibited sources such as lobbyists, to government employees’ legal defense funds. In 1993, the OGE issued an opinion letter holding a fund established for the benefit of a government employee to pay the employee’s legal expenses, while administered by a person having no connection with the employee’s official duties, could accept anonymous contributions. The OGE guidance letter is not legally binding.

Walter Shaub, then director of the OGE, instructed his staff in May of this year to add a one-sentence note to the top of the document signaling the OGE’s long standing internal practice had diverged from the formal guidance, according to Politico. The note read in all caps and a red font, “NOTE: SOME STATEMENTS IN THIS OPINION ARE NOT CONSISTENT WITH CURRENT OGE INTERPRETATION AND PRACTICE.”

Subsequently, after Shaub left the OGE, the document’s note was changed to read, again in all caps and a red font, “NOTE: THE PRIMARY FINDING ABOUT THE LIMITED APPLICABILITY OF 18 U.S.C. §209 TO PAYMENTS MADE FOR AN EMPLOYEE’S LEGAL EXPENSES HAS NOT CHANGED. HOWEVER, BECAUSE EACH ANALYSIS IS VERY FACT-SPECIFIC, AGENCY ETHICS OFFICIALS SHOULD CONSULT WITH THEIR OGE DESK OFFICER BEFORE ADVISING EMPLOYEES ON THIS TOPIC.”

Critics of the note change say this opens the door up to lobbyists and other prohibited sources funding legal defenses for employees currently working in the White House. Richard Lucas, once counsel for a Clinton legal defense fund, told Politico, “Not knowing the source is a recipe for disaster.”

The New York Joint Commission on Public Ethics (JCOPE) issued a call to concerned individuals for comments regarding the Notice of Proposed Rulemakings for Comprehensive Lobbying regulations and Source of Funding Disclosure Regulations.

The comprehensive regulations expand the definition of lobbying to include indirect lobbying, like setting up a meeting between a legislator and a lobbyist. According to JCOPE, the purpose of the proposed regulations is to fully incorporate existing guidelines and decades of advisory opinions.

The hearing will be held on Monday, October 30, 2017 in Hearing Room A of the Legislative Office Building. All public comments must be submitted by 5 p.m. on October 6, 2017, to Carol Quinn, Deputy Director of Lobbying Disclosure, at carol.quinn@jcope.ny.gov.

Additional details are available on the JCOPE website.

Lobbying

“How Anna Nicole Smith’s Billionaire In Laws Secretly Lobbied the Courts” by Zachary Mider for Bloomberg.com

“Russian Network RT Must Register as Foreign Agent in US” by Megan Wilson for The Hill

Campaign Finance

“Trump FEC Pick’s Twitter Goes Dark After Users Spot Anti-Protestant Links” by Tierny Sneed for TPM

New York: “Loophole Allows Public Officials to Shield Legal Expenses” by Chris Bragg for Albany Times Union

Ethics

Michigan: “Engineer Pleads Guilty to Bribery in Macomb County Public Corruption Probe” by Tresa Baldas for Detroit Free Press

Minnesota: “Scott County Attorney Declines Charges in Dai Thao Bribery-Solicitation Case” by Frederick Melo for St. Paul Pioneer Press

Mississippi: “Court: Governments can’t evade open meetings in small groups” by Jeff Amy (Associated Press) for Biloxi Sun Herald

Washington: “Seattle Mayor Ed Murray Resigns After Fifth Child Sex-Abuse Allegation” by Jim Brunner, Daniel Beekman, and Lewis Kamb for Seattle Times

Redistricting

Texas: “Supreme Court Puts Redrawing of Texas Political Maps on Hold” by Alexa Ura and Jim Malewitz for Texas Tribune

Lobbying

California: “California May Slow Revolving Door of Legislators Becoming Lobbyists” by Patrick McGreevy for Los Angeles Times

Tennessee: “Lobbyists Courted Lawmakers with Free Food, Baseball Tickets at Conferences” by Joel Ebert for The Tennessean

Campaign Finance

Colorado: “Denver City Council Approves New Rules Requiring Reports of Dark-Money Spending in Elections” by Jon Murray for Denver Post

Massachusetts: “Pro-Charter School Group Pays State’s Largest Campaign Finance Penalty” by Michael Levenson for Boston Globe

Ethics

“Trump Promised Not to Work with Foreign Entities. His Company Just Did” by Anita Kumar for McClatchy DC

“Interior Faulted for Subsidy to Firm Once Tied to David Bernhardt, Now the Deputy Secretary” by Juliet Eilperin and Jack Gillum for Washington Post

“Guam Delegate May Have Violated Emoluments Clause with Lease, Ethics Office Says” by Elise Viebeck for Washington Post

“Trump’s Legal Team Debated Whether Kushner Should Leave White House” by Carol Leonnig for Washington Post

Campaign Finance

New Mexico: New Campaign Spending Rules to Take Effect by Dan Boyd for Albuquerque Journal

New York: Firm Uses Loophole to Secretly Donate $60G to de Blasio Campaign, Lobbying Records Show by James Fanelli for New York Daily News

Ethics

Mueller Gives White House Names of 6 Aides He Expects to Question in Russia Probe by Carol Leonnig, Rosalind Helderman, and Ashley Parker for Washington Post

Kentucky: Legislative Sex Harassment Case Spurs Call for Change in Kentucky’s Ethics Law by Jack Brammer for Lexington Herald-Leader

Elections

On Facebook and Twitter, a Hunt for Russia’s Meddling Hand by Scott Shane for New York Times

In Free-Range Trump, Many See Potential for a Third Party by Jeremy Peters for New York Times

Lobbying

Canada: Quebec’s Lobbyist Registry Best in Canada, Though All Struggle in Key Transparency Metrics: Study by Marco Vigliotti for The Hill Times

Virginia: Virginia Lawmakers Attend Fewest Lobbyist-Paid Entertainment Events Since McDonnell Case by Will Houp for Virginian-Pilot

Procurement

Illinois: Aldermen Take Another Stab at Relaxing Ethics Rules for Contractors by Fran Spielman for Chicago Sun-Times

 Becky is coming to you from the Content Marketing World 2017 conference in Cleveland, Ohio with this week’s News You Can Use Video Digest!