Gov. Mike Pence has cancelled a contract between the state Bureau of Motor Vehicles (BMV) and Express MVA and requested an investigation due to possible ethics violations.

Shawn Walters, formerly the BMV chief of staff, had approved Express MVA’s opening of a private license branch in 2010. However, when Walters moved from state employment to become the chief operating officer of Express MVA in 2014, he did not ask the state Ethics Commission if such a move would violate the state’s law requiring a one-year cooling-off period.

In addition to ending the contract, Pence has asked the inspector general to determine if Walters violated any ethics law by accepting a job with Express MVA.

Lobbying

“Bennet, Franken Introduce Lobbying Reform Bill – CWA Goes after Planned Parenthood Consultant – New Dems Break Fundraising Record” by Tarini Parti for Politico

Ohio: “Redflex-Funded Groups Helped Columbus Lobby for Cameras” by Lucas Sullivan for Columbus Dispatch

Campaign Finance

“IRS Mismanaged Tea Party Groups, Senate Report Finds” by Bernie Becker for The Hill

Minnesota: “Mark Dayton Drew Big Inaugural Checks after Election” by Brian Bakst (Associated Press) for St. Paul Pioneer Press

Ethics

Georgia: “Investigator: Corruption in DeKalb County ‘stunning’” by Dave Williams for Atlanta Business Chronicle

Indiana: “Pence Cancels BMV Contract, Asks for Ethics Investigation” by Tony Cook for Indianapolis Star

Oregon: “Cylvia Hayes Must Turn Over Emails to Judge for Review, Release” by Nick Budnick and Laura Gunderson for Portland Oregonian

Pennsylvania: “Montco DA Charges Attorney General Kane” by Craig McCoy, Angela Couloumbis, and Jeremy Roebuck for Philadelphia Inquirer

West Virginia: “Law Restricts WV Elected Officials’ Self-Promotion Using Taxpayer Money” by Phil Kabler for Charleston Gazette

National:

Drunk on Power: Booze distributors ply statehouses to keep profits flowing
Center for Public Integrity – Liz Essley Whyte | Published: 8/6/2015

Alcohol distribution is a $135 billion industry in the U.S. To protect the regulations that guarantee their business, wholesalers bankroll scores of lobbyists and give millions of dollars in political contributions. Because alcohol is largely regulated at the state and local level, wholesalers aim most of their political firepower at statehouses. At least 22 states had bills in 2015 seeking to allow alcohol makers to circumvent distributors and sell their products directly to customers. They faced firm opposition because alcohol wholesaler alliances had at least 315 registered lobbyists spread across 49 states and the District of Columbia. Distributors gave about $14.6 million to state candidates, parties, and ballot issue groups in 2014.

Federal:

Limits Unclear on New Political Party ‘Slush Funds’
Center for Responsive Politics – Carrie Levine | Published: 8/3/2015

A new law allows political parties to accept more than $800,000 per person per year, compared to $97,200 under the old limits. The money technically must be used only for specific purposes, such as legal expenses and improvements to party headquarters. But the limits are murkier than they seem, with some lawyers saying the money could legally pay for some election-related costs such as opposition research and data mining. And the FEC is at an impasse over whether and how to issue rules governing the new party accounts. As a result, decisions about spending the money are pretty much up to the parties and their lawyers.

Rand Paul Super PAC Head Indicted over Alleged 2012 Campaign Finance Violations
Washington Post – Sean Sullivan and Matea Gold | Published: 8/5/2015

A supporter and onetime close adviser to U.S. Sen. Rand Paul was charged with hiding secret payments to secure the endorsement of an Iowa lawmaker during the 2012 presidential campaign of his father, former U.S. Rep. Ron Paul. Jesse Benton, who had been tapped to run America’s Liberty, a super PAC that supports Rand Paul’s presidential bid, is accused of paying more than $70,000 to former Iowa Sen. Kent Sorenson to win his support ahead of the state’s caucuses in 2012. Also charged are John Tate and Dimitrios Kesari, who worked with Benton on the 2012 campaign. The three are accused of submitting false expense reports to the FEC. Benton is also accused of lying to the FBI.

Small Pool of Rich Donors Dominates Election Giving
New York Times – Nicholas Confessore, Sarah Cohen, and Karen Yourish | Published: 8/1/2015

An analysis of FEC reports and IRS records shows the fundraising arms race has made most of the presidential hopefuls dependent on a small pool of the richest Americans. Fewer than four hundred families are responsible for almost half the money raised in the 2016 campaign. The intensifying reliance on big money in politics mirrors the concentration of American wealth more broadly. In an era when a tiny fraction of the country’s population has accumulated a huge proportion of its wealth, the rich have also been empowered by the U.S. Supreme Court’s Citizens United decision and other regulatory changes to spend more on elections.

From the States and Municipalities:

Alabama – Tom Albritton, Alabama’s New Ethics Executive Director, Wants to Be Fair, Consistent
AL.com – Mike Cason | Published: 7/31/2015

Tom Albritton, the new executive director of the Alabama Ethics Commission, said consistency is the key to applying a broadly written ethics law in a way that both guards the public’s trust and encourages good people to run for office. He said parts of the ethics law are nonspecific to the extent that it requires careful interpretation for every circumstance and event. “I think having broad language is a challenge to enforce consistently, and you can’t have a rigid set of rules that don’t work in the real world,” said Albritton.

California – Campaign Money Has MTA Board Members Missing Votes
Los Angeles Times – David Zahniser and Katie Shepherd | Published: 8/3/2015

Los Angeles Mayor Eric Garcetti recused himself from dozens of Metropolitan Transportation Authority board votes last year as he sought to comply with one of California’s most restrictive rules on campaign contributions. Politicians on the board are prohibited from participating in decisions on contracts if they have received political donations of more than $10 from the companies seeking the work. One of his appointees to the board, city Councilperson Mike Bonin, withdrew from 34 contract decisions. County Supervisor Michael Antonovich stepped aside on 19 votes. For ethics experts, the practice of missing votes poses a question: does it mean the system is working, because politicians are staying away from the decisions that affect their campaign donors? Or does it show that it is broken, because board members repeatedly miss major financial decisions?

California – Public Officials Named in New Findings from FBI Probe of ‘Shrimp Boy’ Chow
San Francisco Examiner – Jonah Owen Lamb | Published: 8/4/2015

Evidence from the prosecution of Raymond “Shrimp Boy” Chow potentially implicates a wide array of public officials in alleged bribery schemes, “pay-to-play” plots, money laundering, and bid-rigging. The federal investigation culminated in a sweeping indictment with 29 defendants. Among them was former California Sen. Leland Yee, who pleaded guilty to racketeering. Chow was charged with running a Chinese American community organization as a racketeering enterprise. A motion to dismiss the indictment included snippets of FBI reports and wiretap evidence that suggest San Francisco Mayor Ed Lee and others participated in public corruption schemes but were spared prosecution “due to their political affiliations.’

Maine – Anti-Gay Marriage Group Suffers another Loss in Bid to Conceal Donors to Maine Campaign
Portland Press Herald – Steve Mistler | Published: 8/4/2015

Maine’s highest court rejected a national group’s latest bid to shield the identities of donors who contributed to its effort to overturn the state law allowing same-sex marriage. The state ethics commission fined the National Organization for Marriage (NOM) $50,250 last year for violating campaign finance laws and ordered it to file a report revealing the names of those who supported the referendum. NOM paid the fine but asked the Supreme Judicial Court to allow it to hold off on filing the report until the court considers its appeal of the commission’s decision. The justices denied that request, saying it is unlikely the organization will be successful in its challenge of the ethics panel’s ruling.

Massachusetts – 2 Businesses Fight State Ban on Campaign Contributions
MassLive.com – Shira Schoenberg | Published: 8/4/2015

An advocacy group and two business owners asked a judge to grant a preliminary injunction temporarily halting Massachusetts’ restrictions on corporate political giving. Under the state’s current campaign finance law, businesses are not allowed to contribute directly to candidates. Unions can contribute up to $15,000 to a candidate and individuals can contribute up to $1,000. Businesses cannot establish and fund PACs that donate to candidates, even though unions can. “Government can’t pick winners and losers in the political marketplace,” Jim Manley, senior attorney at the Goldwater Institute, told reporters before the hearing.

New York – JCOPE Denies Request to Shield Abortion-Issue Donors
Capital New York – Jimmy Vielkind | Published: 8/4/2015

The Joint Commission on Public Ethics (JCOPE) rejected applications from Family Planning Advocates of New York and the state Civil Liberties Union for exemptions that would allow the groups to keep their most generous donors secret. The 2011 law that created JCOPE allows it to grant exemptions if donors to a specific group – advocacy organizations categorized as 501(c)4 groups – are likely to face “harm, threats, harassment, or reprisals” if their giving becomes known to the public. Commissioners who opposed the exemptions expressed concern that the standard of evidence in the applications, which detailed episodes of perceived threats, was insufficient.

Pennsylvania – City Adopts New Reporting Requirements for Campaign Financing
Philadelphia Daily News – Wendy Ruderman | Published: 7/31/2015

Mayor Michael Nutter signed legislation that requires non-candidate groups that fundraise for the purpose of influencing elections to submit campaign finance reports every two weeks, beginning six weeks before an election. Non-candidate groups include nonprofit organizations, corporations, partnerships, and PACs. Disclosures regarding electioneering communications, such TV ads purchased by non-candidate parties, are also required within 50 days of an election. The bill followed a Democratic mayoral primary in which a significant amount of so-called dark money was spent by independent groups to influence the race.

Pennsylvania – City’s Campaign Contribution Limits at Heart of Fattah Case
Philadelphia Inquirer – Chris Brennan | Published: 7/30/2015

U.S. Rep. Chaka Fattah had a plan as he prepared for Philadelphia’s 2007 mayoral race: raise six-figure contributions from wealthy donors and, if challenged, use the courts to overturn the city’s donation limits. The conventional wisdom in political and legal circles at the time was that those caps would not survive a legal challenge. A Philadelphia judge, as expected, overturned the limits in December 2006. Commonwealth Court put them back in a ruling that landed just six weeks before the mayoral primary. The ruling set Fattah on a course that ultimately led to his recent indictment on corruption charges as he tried to circumvent the local law.

Pennsylvania – Reading Councilman Pleads Guilty in Corruption Case
Philadelphia Inquirer – Jeremy Roebuck | Published: 8/5/2015

Reading City Council President Francisco Acosta pleaded guilty to accepting a bribe of $1,800 in return for his effort to repeal the city’s campaign finance law. Court documents do not identify the public official who offered the bribe, but said the official had the power to sign city council legislation into law. The only person with that power is Mayor Vaughn Spencer, whose home was raided in July by the FBI. “Public Official No. 1,” as court documents described the person offering the bribe, had taken campaign donations that violated city law. The official believed “his best chance of winning re-election would require keeping these contributions and raising additional funds which would be prohibited by the code of ethics,” according to the documents.

Texas – Appellate Panel Says Texas ID Law Broke U.S. Voting Rights Act
New York Times – Erik Eckholm | Published: 8/5/2015

A federal appeals court struck down Texas’s voter-identification law, ruling it violates the Voting Rights Act. Texas was allowed to use the law during the 2014 elections, thereby requiring an estimated 13.6 million registered voters to have a photo ID to cast a ballot. The ruling was a victory, although not a sweeping one, for Democrats and minority rights groups. Last year, a federal judge called the law the equivalent of a poll tax, but the three-judge panel of the Fifth U.S. Circuit Court of Appeals disagreed. Instead, it sent the law back to the lower court to consider how to fix the discriminatory effects. The state can appeal the unanimous decision to the full appeals court, or ask for a U.S. Supreme Court review.

Texas – Paxton Surrenders in Securities Fraud Indictment
Texas Tribune – Patrick Svitek | Published: 8/3/2015

Facing three felony counts of securities law violations, Texas Attorney General Ken Paxton was booked on felony securities fraud charges. The grand jury indictments show that two first-degree fraud charges were based on Paxton’s efforts in July 2011, when he was a member of the state House, to sell stock on behalf of Servergy. According to the indictments, Paxton failed to tell stock buyers that he had been compensated with 100,000 shares of Servergy stock. Paxton also said he was an investor in Servergy when he was not, the charges indicated. A third count accused Paxton of acting as an investment adviser representative without registering with the State Securities Board. Paxton is not required to leave office while he fights the charges.

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

“Rand Paul Super PAC Head Indicted over Alleged 2012 Campaign Finance Violations” by Sean Sullivan and Matea Gold for Washington Post

Connecticut: “CT Democrats Seek New Ruling to Resolve Malloy Campaign Investigation” by Mark Pazniokas and Keith Phaneuf for Connecticut Mirror

Massachusetts: “2 Businesses Fight State Ban on Campaign Contributions” by Shira Schoenberg for MassLive.com

Minneapolis: “MN Campaign Finance Board Gets Report about Holes in Disclosure Law” by J. Patrick Coolican for Minneapolis Star Tribune

Pennsylvania: “Reading Councilman Pleads Guilty in Corruption Case” by Jeremy Roebuck for Philadelphia Inquirer

Wisconsin: “Scott Walker, GOP Lawmakers Want to Change Elections Board by 2016” by Patrick Marley for Milwaukee Journal Sentinel

Ethics

California: “Public Officials Named in New Findings from FBI Probe of ‘Shrimp Boy’ Chow” by Jonah Owen Lamb for San Francisco Examiner

Hawaii: “Ian Lind: Ex-Legislator May Make a Good Ethics Commissioner” by Ian Lind for Honolulu Civil Beat

New York: “New York State Ethics Watchdog Panel Divided on Choice for New Top Administrator” by Casey Seiler for Albany Times Union

Legislative Issues

Kansas: “The Kansas Experiment” by Chris Suellentrop for New York Times Magazine

Lobbying

“Jon Stewart’s Next Act: Lobbyist?” by Darren Samuelsohn for Politico

California: “Measure Seeks to Reveal Names, Funding behind Indirect Lobbying” by Emily Green for San Francisco Chronicle

New York: “JCOPE Denies Request to Shield Abortion-Issue Donors” by Jimmy Vielkind for Capital New York

Campaign Finance

“Super PAC Doppelgangers Eclipse Candidates in Campaign Money Chase” by Michael Beckel for Center for Public Integrity

California: “Campaign Money Has MTA Board Members Missing Votes” by David Zahniser and Katie Shepherd for Los Angeles Times

Maine: “Anti-Gay Marriage Group Suffers another Loss in Bid to Conceal Donors to Maine Campaign” by Steve Mistler for Portland Press Herald

New York: “New York State Lawmakers Spend Millions in Campaign Funds on Legal Fees” by Susanne Craig and Thomas Kaplan for New York Times

Ethics

Massachusetts: “Voters May Have a Say on Boosting Public Records Access” by Todd Wallack for Boston Globe

Redistricting

New York: “Democrats Unveil a Plan to Fight Gerrymandering” by Jonathan Martin for New York Times

Lobbying

New York: “Documents Reveal New York State Agency’s Role in Adirondacks Mining Proposal” by Susanne Craig for New York Times

Wisconsin: “Legislation Seeks to Limit Lobbying in City Government” by Simon Schatzberg for WISC

Campaign Finance

“Limits Unclear on New Political Party ‘Slush Funds’” by Carrie Levine for Center for Responsive Politics

Arizona: “Attorney General Flips, Bans Public Funds for Anti-Pot Campaign” by Howard Fischer (Capitol Media Services) for Arizona Daily Sun

Ethics

“House Ethics Panel Clears Lawmakers over 2013 Azerbaijan Trip” by John Bresnahan for Politico

California: “City Ethics Commission Picks Get Political” by Greg Moran for San Diego Union-Tribune

Texas: “Paxton Surrenders in Securities Fraud Indictment” by Patrick Svitek for Texas Tribune

Elections

“Donald Trump Is Cash Cow for GOP State Parties” by Kyle Chaney, Katie Glueck, and Eli Stokols for Politico

California: “Recall Election History Bodes Ill for Richard Pan Opponents” by Jeremy White for Sacramento Bee

Procurement

“As Cloud of Corruption Passes in D.C., Regular Dysfunction Back in Spotlight” by Aaron Davis for Washington Post

Lobbying

Maryland: “Gun Groups Are No Longer Major Spenders in Maryland Lobbying Game” by Josh Hicks for Washington Post

Ohio: “Three on Columbus Council Paid for Football Trip after Bribe Probe Revealed” by Lucas Sullivan for Columbus Dispatch

Campaign Finance

“‘Dark Money’: ALEC wants image makeover” by Tarini Parti for Politico

“Scam PACs Keep Money Churning, but Not to Candidates” by Will Tucker for Center for Responsive Politics

Georgia: “Student Project Leads to Ethics Investigation, Subpoenas” by Jodie Fleischer for WSB

New Mexico: “Council Rejects Increase in Campaign Matching Funds” by Daniel Chacón for Santa Fe New Mexican

Pennsylvania: “City’s Campaign Contribution Limits at Heart of Fattah Case” by Chris Brennan for Philadelphia Inquirer

Pennsylvania: “City Adopts New Reporting Requirements for Campaign Financing” by Wendy Ruderman for Philadelphia Daily News

Virginia: “Clinton Donors Also Pumped Millions into McAuliffe’s Coffers” by Laura Vozzella for Washington Post

Ethics

Alabama: “Tom Albritton, Alabama’s New Ethics Executive Director, Wants to Be Fair, Consistent” by Mike Cason for AL.com

Elections

“Billionaire Koch Brothers’ Network Takes Cue from Obama’s Playbook” by Matea Gold for Washington Post

On July 29, City Council passed ordinance O2015-4685, amending the city ethics code.

The amendment requires the Office of the Legislative Inspector General (OLIG) to deliver all evidence collected during an investigation to the Board of Ethics before the board decides if city ethics rules have been violated. This would include the names and addresses of complainants and confidential testimony.

As the board will provide collected evidence to the accused, there is concern the change will have a chilling effect on potential whistleblowers, leave witnesses open to possible retaliation, and weaken the OLIG’s ability to enforce the ethics ordinance.

National:

A Dream Undone
New York Times – Jim Rutenberg | Published: 7/29/2015

August 6 is the 50th anniversary of the signing of the Voting Rights Act. It eliminated literacy tests and other Jim Crow tactics, and in a key provision called Section 5 required seven states with histories of black disenfranchisement to submit any future change in statewide voting law for approval by federal authorities. In 2008, for the first time, black turnout was nearly equal to white turnout, and Barack Obama was elected the nation’s first black president. Since then, however, the legal trend has abruptly reversed. The rollback of the law was the result of a little-known part of the civil rights story. It involves a largely Republican countermovement of ideologues and partisan operatives who methodically set out to undercut or dismantle its most important requirements.

Facebook Expands in Politics, and Campaigns Find Much to Like
New York Times – Ashley Parker | Published: 7/29/2015

While it is no surprise that campaigns are devoting a greater share of their budget and energy on digital initiatives, Facebook, already a major player in past cycles, has been working to expand its digital dominance in the political realm. Facebook, which has 189 million monthly users in the U.S., has pitched its tools and services to every presidential campaign in the 2016 race, not to mention down-ballot races, to showcase new features as candidates seek to reach and recruit new supporters and potential donors. Some estimate that 2016 will usher in roughly $1 billion in online political advertising, and Facebook says it is on track to increase its revenue from previous cycles.

Federal:

Billionaire Donors Bypass K Street
Roll Call – Kate Ackley | Published: 7/29/2015

The most politically generous billionaires invest almost unlimited personal resources in supporting federal candidates and super PACs. But the hedge funds and other companies that fuel their bank accounts put up a relatively small amount of cash toward disclosed federal lobbying, according to a Roll Call survey of the top 25 donors. Some of the firms founded or owned by the biggest donors leave no paper trail revealing any history of lobbying work. But even when they do not list a roster of pricey hired help from K Street, these top donors and their companies still exert influence.

D.N.C. Lifts Ban on Convention Fundraising
New York Times – Maggie Haberman | Published: 7/23/2015

The Democratic National Committee (DNC) lifted its ban on contributions from PACs and lobbyists for its convention fundraising and for the accounts it shares with presidential campaigns. Both limitations were put in place by Barack Obama, who was seeking to change the influence of money in Washington. The DNC will continue its policy of not accepting donations from PACs and lobbyists for its general fundraising operations. Allowing such contributions to the joint fundraising committee was something that Hillary Clinton’s campaign encouraged, and Congress last year eliminated public funding for the national conventions.

From the States and Municipalities:

Arkansas – Ethics Panel Reaffirms Past Ruling on Ticket Sales to Legislators
Arkansas News – John Lyon (Arkansas News Bureau) | Published: 7/24/2015

Regardless of whether the preferential treatment comes from the University of Arkansas itself or from the Razorback Foundation, lawmakers cannot get access to Razorback tickets unless they pay the same fees as everyone else, the state Ethics Commission ruled. University officials had argued the school and its athletic booster club are separate entities and restrictions on gifts from lobbyists do not apply to the foundation. The commission disagreed.

Missouri – McCaskill Calls for Advocacy Group to Give Missouri Capital Interns ‘Someone to Talk to’
KCUR – Jo Mannies | Published: 7/29/2015

State Sen. Paul LeVota resigned recently after being accused of sexually harassing an intern, but U.S. Sen. Claire McCaskill contends the real issue is that little has changed. She was an intern at the Missouri Capitol 41 years ago. “I am bitterly disappointed that the climate has not changed significantly since 1974,” McCaskill said, recalling her own experiences with off-color jokes and unsolicited sexual comments. And she remembers the self-doubt of what she should do. That is why McCaskill is suggesting that a special advocacy organization be set up to simply give interns a non-threatening source to talk to, where they could get constructive information about how to file a formal complaint and even hire a lawyer.

Missouri – Missouri’s ‘Wild West’ Campaign-Finance Rules Are Making Candidates Look Terrible
National Journal – Karyn Bruggeman | Published: 7/23/2015

A handful of states have no limits on who can donate to candidates or how much, but Missouri is the only one with the combination of no limits on campaign donations or lobbyist gifts, and no laws on the books to prevent elected officials from immediately becoming lobbyists after leaving office. For candidates looking to raise money, the laissez-faire approach is a boon. But when it comes time to explain to voters where that cash came from and what it was for, candidates are often left without good answers. That has been particularly true of the start of the state’s 2016 governor’s race.

Nebraska – Number of Groups Hiring Nebraska Lobbyists Reaches New High
Seattle Post-Intelligencer – Grant Schulte (Associated Press) | Published: 7/28/2015

Common Cause Nebraska said the number of groups hiring lobbyists rose to a record 527 this year, from 506 in 2014. The groups spent nearly $14.1 million last year to influence lawmakers, most of which went to lobbyists. The report calls for more specific disclosure requirements, including a breakdown of lobbyist expenses per elected official and creating a separate reporting category for food and beverages. Nebraska should prohibit lobbyists from bundling campaign contributions and ban all in-session fundraisers.

Nevada – Nevada Lobbyists Spend Record Amount on Legislators
Las Vegas Review-Journal – Sandra Chereb | Published: 7/24/2015

Lobbyists in Nevada spent $153,079 to entertain and influence state lawmakers during this year’s legislative session. The record amount is up nearly 26 percent over the $121,594 reported by lobbyists two years ago. Lobbyists are required to report how much they spend on gifts, group events, and entertainment provided to lawmakers for each month of the session. The entertainment category includes cost of meals and beverages when a lobbyist picks up the tab. The cost of group events – receptions, luncheons, dinners, or other events where every legislator is invited – totaled $149,777. Individual entertainment expenses were $2,176.

Ohio – City Council Officials Got Box Seats at Ohio State Game
Columbus Dispatch – Lucas Sullivan | Published: 7/26/2015

Days after John Raphael abstained from voting on a food-and-beverage contract for the Greater Columbus Convention Center because of a conflict-of-interest, he escorted four Columbus City Council members to the Big Ten Conference Championship football game. Raphael said he removed himself from the convention authority’s food-vendor selection process because he represented Centerplate, the company that was then bidding for and now holds the contract, as a statewide lobbyist. Raphael and his relationships with elected officials have come under scrutiny after he was implicated in the bribery scheme involving Redflex, the company that had the contract for red-light cameras in Columbus.

Oregon – Ethics Reforms after Kitzhaber: Going slow means getting it right, Oregon lawmakers argue
Portland Oregonian – Denis Theriault | Published: 7/29/2015

The day before Gov. John Kitzhaber quit amid influence-peddling allegations, Republicans in the Oregon Legislature seized on the scandal to introduce sweeping ethics reforms. They wanted to set strict rules for the governor’s partner, allow lawmakers to impeach statewide officials, and increase access to public records, among other changes. But when lawmakers adjourned in July, none of those ideas had advanced. Only three milder bills drafted by Gov. Kate Brown became law. Some Republicans say Democratic leaders played politics to keep the state’s minority party from scoring points. But other officials, including Brown, say they are intentionally taking it slow, especially in the absence of criminal charges spelling out whether Kitzhaber and former first lady Cylvia Hayes broke any laws.

Pennsylvania – Pa. Congressman Fattah Indicted on Corruption Charges from 2007 Mayor’s Race
Washington Post – Paul Kane and Mike DeBonis | Published: 7/29/2015

U.S. Rep. Chaka Fattah and four associates were indicted on racketeering conspiracy charges, accused of misusing hundreds of thousands of dollars in taxpayer, charity, and campaign funds. Fattah is accused of misusing money from his unsuccessful 2007 bid for mayor of Philadelphia. Prosecutors allege Fattah used federal grants and donations to his educational foundation to pay back part of a campaign supporter’s $1 million loan and helped arrange a $15 million federal grant for a nonexistent nonprofit in lieu of a $130,000 payment to a political consultant after his failed mayoral run.

Texas – Appeals Court Rejects One Count in Perry Indictment
Texas Tribune – Patrick Svitek | Published: 7/24/2015

A state appeals court dropped one of the two felony charges that former Texas Gov. Rick Perry is facing. He was indicted last summer on criminal charges of abuse of power and coercion of a public servant. The case surrounds an episode during which Perry was accused of trying to use his powers as governor to make an elected official step down after being charged with drunken driving. The court dismissed the coercion of a public servant charge against Perry on the grounds that it violates his right to free speech under the First Amendment. He still faces the abuse of official capacity charge, which carries a prison sentence of five to 99 years.

Virginia – Clinton Donors Also Pumped Millions into McAuliffe’s Coffers
Washington Post – Laura Vozzella | Published: 7/29/2015

More than 175 contributors to the Clinton Foundation and to Hillary Clinton’s 2016 presidential campaign have dug deep into their wallets for Virginia Gov. Terry McAuliffe, often giving prolifically despite little or no connection to the state. Of the $60 million that McAuliffe has raised for his two gubernatorial bids, inauguration, PAC, and the Virginia Democratic Party, nearly $18 million has come from contributors to the Clinton Foundation or to Hillary Clinton’s current campaign. The substantial overlap highlights how intimately McAuliffe’s political universe is intertwined with that of Bill and Hillary Clinton, for whom McAuliffe has been a fundraiser and close friend.

Wisconsin – Emails Show Contact between GAB Head and IRS Mostly Personal in Nature
Wisconsin Radio Network – Andrew Beckett | Published: 7/27/2015

An opinion piece in The Wall Street Journal raised the possibility of a coordinated effort by Wisconsin Government Accountability Board Director Kevin Kennedy and former IRS Director of Exempt Organizations Lois Lerner to target conservative political groups for investigation. Wisconsin officials have now released 138 pages of emails between Kennedy and Lerner. Most of the messages discuss dinner and travel plans, or updates about family. A handful of include IRS policy updates or repost articles about campaign finance debates. Lerner also included Kennedy on several lengthy email forwards featuring humorous photo collections about friendship and other jokes.

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.

Lobbying

“Billionaire Donors Bypass K Street” by Kate Ackley for Roll Call

Nebraska: “Number of Groups Hiring Nebraska Lobbyists Reaches New High” by Grant Schulte (Associated Press) for Seattle Post-Intelligencer

Campaign Finance

New Jersey: “Super PACs Start Dominating Local Races in N.J.” by Matt Friedman for Politico

Ethics

Missouri: “McCaskill Calls for Advocacy Group to Give Missouri Capital Interns ‘Someone to Talk to’” by Jo Mannies for KCUR

New York: “Despite Unprecedented Scandal, Calls for Special Ethics Session Fall on Deaf Ears” by David Howard King for Gotham Gazette

Oregon: “Ethics Reforms after Kitzhaber: Going slow means getting it right, Oregon lawmakers argue” by Denis Theriault for Portland Oregonian

Pennsylvania: “Pa. Congressman Fattah Indicted on Corruption Charges from 2007 Mayor’s Race” by Paul Kane and Mike DeBonis for Washington Post

Elections

“Facebook Expands in Politics, and Campaigns Find Much to Like” by Ashley Parker for New York Times

“A Dream Undone” by Jim Rutenberg for New York Times

The U.S. Department of Justice announced the indictment of Rep. Chaka Fattah on several charges including bribery; conspiracy to commit wire, honest services, bank, and mail fraud; and money laundering. The Philadelphia congressman is accused of misappropriating federal grant money, arranging a federal grant in lieu of a payment to a political consultant, and other acts such as using the money to pay off his son’s student loans.

The indictment also includes four members of Rep. Fattah’s campaign and congressional staffs.

The congressman has served 11 terms and is the ranking member on the Appropriations Commerce, Justice and Science Subcommittee.

Campaign Finance

Maine: “Clean Election Referendum Includes Call to End $6 Million in Maine Corporate Tax Breaks” by Steve Mistler for Portland Press Herald

Missouri: “Missouri’s ‘Wild West’ Campaign-Finance Rules Are Making Candidates Look Terrible” by Karyn Bruggeman for National Journal

Wisconsin: “Emails Show Contact between GAB Head and IRS Mostly Personal in Nature” by Andrew Beckett for Wisconsin Radio Network

Ethics

Florida: “Former Lt. Gov. Carroll Admits Breaking Ethics Law” by Michael Auslen (Tampa Bay Times) for Miami Herald

Hawaii: “Honolulu Ethics Commission Loosens News Media Policy” by Anita Hofschneider for Honolulu Civil Beat

New Jersey: “Christie Has Made Habit of Appointing High School Friends” by Jill Colvin (Associated Press) for Raleigh News & Observer

New York: “New Hire for Ethics Board Attacked” by Casey Seiler for Albany Times Union

Elections

“As the G.O.P. Base Clamors for Confrontation, Candidates Oblige” by Jackie Chalmes for New York Times

“Are Voters Ready to Cast a Vote Against the Supreme Court?” by Greg Stohr for Bloomberg.com

On July 27, 2015, a jury found state Rep. Steve Kraus guilty of fifth-degree felony theft. Under Ohio law, Kraus was automatically removed from his seat in the Ohio House upon his conviction.

Kraus, who also works as an auctioneer and real estate agent, was accused of removing items from the home of an elderly woman. He asserted he had been granted permission to enter the home and it was his fiduciary duty to remove the items.

However, the woman’s real estate agent stated Kraus was only given permission to enter the garage to photograph an antique car.

Kraus faces up to 12 months in prison. The sentencing will be held on August 21.

Photo of Steve Kraus courtesy of the Ohio House of Representatives website.

A voter initiative is being developed in Orange County, California, to create a county ethics commission. The commission would enforce campaign finance limits for countywide offices as well as public ethics, including gifts and conflicts of interest.

The commission would also have a hotline where citizens could provide tips regarding ethics issues and would have the power to subpoena witnesses and documents.

If the initiative qualifies, it would appear on the November 2016 ballot. A version of the proposed initiative is available here.