A measure to increase penalties for violations of Pennsylvania lobbying laws made it out of committee this week.

House Bill 1175 increases the amount a lobbyist may be fined from $2,000 to $4,000, and establishes a graduating scale of daily fines for failure to register or report.

If passed, the per day fine will be $50 for the first 10 days, $100 for days 11 through 20, and $200 for each day thereafter.

The bill now moves to the full House for consideration.

Lobbying

California: “Foes into Friends: Lobbyists make amends to lawmakers with ‘make-up money’” by Laurel Rosenhall for CALmatters.org

Illinois: “Ethics Board Rejects Watchdog Recommendation That City Officials Report Lobbying” by Hal Dardick for Chicago Tribune

Campaign Finance

Tennessee: “Bill to Increase Campaign Finance Audits Heads to Governor” by Joel Ebert for The Tennessean

Ethics

“CNN Exclusive: Grand jury subpoenas issued in FBI’s Russia investigation” by Evan Perez, Shimon Prokupecz, and Pamela Brown for CNN

New Hampshire: “Lawmaker Behind Misogynistic Forum: ‘I’ve never hated women’” by Kathleen Ronayne (Associated Press) for U.S. News & World Report

New Jersey: “$25,000 Could Be Yours for Reporting N.J. Corruption” by Owen Proctor for Bergen Record

Pennsylvania: “Philly DA Williams Faces More Federal Corruption Charges” by Jeremy Roebuck for Philadelphia Inquirer

West Virginia: “W. Va. Reporter Arrested for ‘Yelling Questions’ at HHS Secretary” by Doug Stanglin for USA Today

Legislative Issues

“Why the IRS Puts White-Nationalist Groups in the Same Category as Orchestras, Planetariums and Zoos” by Max Ehrenfreund for Washington Post

Lawmakers passed two measures dealing with ethics and transparency during the regular legislative session that wrapped up in April.

House Bill 2319 will become effective July 5, requiring candidate committees for members of the Legislature to make additional disclosures of contributions and fundraising events while the Legislature is in session.

House Bill 2001 will become law July 7, requiring companies contracting with state agencies on contracts over $100,000 to make disclosures listing interested parties to the contract.

Bills that were not approved during the legislative session do not carry over.

Among the amendments in the 2017 Consolidated Appropriations Act that passed into law on May 5 are two provisions affecting campaign financing.

House Resolution 244 explicitly prohibits the Internal Revenue Service from making new rules concerning the political speech or activity of 501(c)(4) organizations. The legislation also prohibits the Securities and Exchange Commission from finalizing, issuing, or implementing any rule, regulation, or order regarding the disclosure of political contributions, contributions to tax exempt organizations, or dues paid to trade associations.

The 708 page omnibus spending bill, passed by Congress on May 4 and signed by the president on May 5, funds the U.S. government through September 30.

Gov. Susana Martinez has called a special session for May 24, 2017.

According to the proclamation, the special session is called to enact legislation concerning the budget, tax reform, and nominees for the appointment to the Board of Regents for state higher education institutions.

Per New Mexico law, all legislators are prohibited from soliciting a campaign contribution beginning when a proclamation has been issued and ending when the special session adjourns.

The adjournment date has yet to be determined.

Senate Bill 2343 was signed into law in April to enhance campaign finance reporting requirements and restrict candidates from using campaign funds for personal expenses.

The new law makes changes to the disclosure requirements for PACs and multicandidate political committees, requiring them to file pre-election, supplemental, and annual reports.

Senate Bill 2343 also makes amendments to statements required by measure committees circulating or promoting passage or defeat of initiated or referred measures.

The law becomes effective February 1, 2018, for campaign years beginning after December 31, 2017.

The 29^th Hawaii Legislature adjourned sine die on Thursday, May 4.

Prior to adjournment, House members elected Rep. Scott Saiki as Speaker of the House. He replaces Rep. Joseph Souki, who resigned after lawmakers failed to come together to pass certain bills.

Lawmakers passed 233 bills during the 2017 legislative session, including budgets for fiscal years 2018 and 2019.

Pending bills will carry over to the 2018 legislative session.

National:

Guns and Religion: How American conservatives grew closer to Putin’s Russia
Washington Post – Rosalind Helderman and Tom Hamburger | Published: 4/30/2017

A significant shift has been underway in recent years across the Republican right. On issues including gun rights, terrorism, and same-sex marriage, many leading advocates on the right who grew frustrated with their country’s leftward tilt under President Barack Obama have forged ties with well-connected Russians and come to see that country’s authoritarian leader, Vladimir Putin, as a potential ally. The attitude adjustment among many conservative activists helps explain one of the most curious aspects of the 2016 presidential race: a softening among many conservatives of their historically hardline views of Russia.

Federal:

Code Pink Protesters at Sessions Hearing Could Face Year in Prison
New York Times – Christopher Mele | Published: 5/3/2017

A jury convicted three Code Pink activists for disrupting Jeff Sessions’ confirmation hearing to be attorney general, including one who apparently laughed during the hearing. Desiree Fairooz, who dressed up as a pink version of Lady Liberty, was found guilty on charges of parading or demonstrating on Capitol grounds and disorderly conduct. Two other activists, Tighe Barry and Lenny Bianchi, were acquitted on a count of disorderly conduct but were convicted on two separate charges of parading or demonstrating during the hearing. Both men dressed up as Ku Klux Klan members, wearing white hooded robes, and stood up before the hearing started. All three could face up to a year in prison.

Lewandowski’s Firm Appears to Offer Trump Meetings
Politico – Kenneth Voogel and Josh Dawsey | Published: 4/28/2017

A firm co-founded by Donald Trump’s original campaign manager Corey Lewandowski appears to have been pitching clients around the world by offering not only policy and political advice, but also face time with President Trump, Vice President Mike Pence, and senior members of their administration. The previously unreported firm, Washington East West Political Strategies, was created by Lewandowski and fellow Trump campaign veteran Barry Bennett, as well as an Azerbaijani oil executive and an American political consultant who works extensively in Russia, to prospect for political business in Eastern Europe. And Lewandowski and Bennett have created different firms with other partners to prospect in the Middle East, Canada, and Central America, Bennett said.

Top Ethics Officer Challenges Trump Over Secret Waivers for Ex-Lobbyists
New York Times – Eric Lipton | Published: 5/1/2017

The Office of Government Ethics (OGE) sent a letter to the White House and all executive branch agency heads asking for copies of any waivers the Trump administration may have granted to appointees exempting them from ethics rules.  The OGE’s director, Walter Shaub, said the Obama administration similarly granted waivers, but the prior administration’s waivers were given “under a narrow set of circumstances” and were posted publicly on the OGE’s website. The New York Times has reported that in at least two instances, the Trump administration “secretly issued” waivers exempting officials from ethics rules.

Trump Transition Staffers Head to K Street Despite Lobbying Ban
Politico – Theodoric Meyer and Michael Stratford | Published: 5/3/2017

Donald Trump barred people who worked on his transition from lobbying for six months afterward, but at least nine people who worked on transition have registered as lobbyists. Many are registered to lobby the same agencies or on the same issues they worked on during the transition. Because of the way the six-month lobbying ban was worded, the former staffers may not be violating it. Regardless, their trips from lobbying to government service and back run counter to Trump’s campaign promise to close Washington’s “revolving door.” They also raise questions about how rigorously the White House will enforce a separate five-year lobbying ban that applies to those serving in the administration.

While in White House, Trumps Remained Selling Points for ‘Very Special’ Philippines Project
Washington Post – Drew Harwell and Matea Gold | Published: 5/2/2017

Four months into President Trump’s tenure, his business relationship with a developer who is one of the Philippines’ richest and most powerful men has emerged as a prime example of the collision between the private interests of a businessperson in the White House and his public responsibility to shape U.S. foreign policy. The potential conflict first came into focus shortly before Trump was elected, when the Philippines’ president, Rodrigo Duterte, named the Trump Organization’s partner on a Manila real estate venture as his top trade envoy. Although promotional videos for Trump Tower in the Philippines were posted online in 2013, the continued presence of the president and his daughter, Ivanka, in marketing materials for the reflects the extent to which they remain key selling points even as they have vowed to distance themselves from their global real estate and branding businesses.

From the States and Municipalities:

Colorado – Colorado Supreme Court Hears Dispute on Whether Legal Fees Count as Political Donations
Denver Post – Tom McGhee | Published: 5/2/2017

The Colorado Supreme Court heard arguments in a case that could decide whether free, or reduced-cost, legal services provided to political groups should be considered contributions under the state’s campaign finance law. In a case stemming from the 2012 University of Colorado Board of Regents race, the Court of Appeals ruled legal services must be treated like political contributions, which limit the amount a single donor can give. The high court has stayed that ruling to allow time for justices to hear the case.

Massachusetts – Regulator Sees ‘Evidence of Violations’ at Thornton Law Firm
Boston Globe – Andrea Estes | Published: 4/29/2017

State regulators are recommending that Massachusetts Attorney General Maura Healey open a criminal investigation of nine lawyers at Boston’s Thornton Law Firm as well as seven of their spouses, concluding the firm’s longtime practice of reimbursing lawyers for political contributions may have broken multiple laws. Michael Sullivan, director of the state Office of Campaign and Political Finance, said in a letter to Healey his office had concluded there is “evidence of violations” of campaign finance laws that require political contributions be made in the name of the actual donor. He said the firm as well as 16 individuals may have broken the law. Sullivan’s letter marked the first time that state officials sought criminal prosecution in a “straw donor” case.

Minnesota – Allegations Against Dai Thao Campaign Reveal Law’s Complexity
Minneapolis Star Tribune – Jessie Van Berkel and Eric Roper | Published: 5/2/2017

The Minnesota Bureau of Criminal Apprehension will investigate allegations of a failed bribery solicitation by St. Paul City Councilperson Dai Thao. Media reports indicated Thao, who is running for mayor, pressured a lobbyist for “resources” before a council vote and his campaign manager later texted the lobbyist to say a campaign donation might get him to “rethink this issue.” Lobbyist Sarah Clarke rejected the offer, citing state bribery statutes. Minnesota law prohibits a public officer or employee from requesting benefits or reward with the understanding that it will influence their power or duties. In the past five years, however, only one public official or employee was convicted under the law.

Missouri – Missouri Governor to Pay Fee for Using Nonprofit Donor List
U.S. News & World Report – David Lieb (Associated Press) | Published: 4/29/2017

Gov. Eric Greitens was fined $1,000 by the Missouri Ethics Commission for violating the state’s campaign finance law. Greitens failed to disclose last year that his campaign obtained a donor list from The Mission Continues, a nonprofit he founded in 2007. Federal law prohibits charities like The Mission Continues from intervening in political campaigns on behalf of candidates. The IRS has ruled charities cannot give donor lists to politicians but can rent them at fair market value if made available to all candidates. The ethics panel said Greitens’ campaign should have disclosed receiving the donor list as an in-kind contribution from his campaign manager, Daniel Laub.

New York – City Pays for Mets Moment, Guided by Firm with Troubled Ties to de Blasio
New York Times – J. David Goodman | Published: 4/30/2017

Several hundred city workers, tourists, and passers-by gathered near the steps of City Hall as Mayor Dill de Blasio again marked the New York Mets’ 1986 World Series victory. The event offered Dwight Gooden, the former Mets pitcher whose battles with drug addiction caused him to miss the original festivities, a chance to relive the moment. The city paid for the event, which had been conceived as a scene for a television series in development, produced by the sports radio host Amy Heart. So how did Ms. Heart get the city not only to pay for the backdrop of a scene in a television pilot but also have the mayor take part? By enlisting the influential lobbying firm of James Capalino, a friend and longtime donor to de Blasio whose business skyrocketed with the mayor’s election.

South Dakota – South Dakota Ethics Bill Lost Teeth on Its Way to Becoming Law
Sioux Falls Argus Leader – Dana Ferguson | Published: 4/27/2017

Four retired judges will be appointed in the coming months to the new government accountability board, forming the nearest thing to a state ethics board that South Dakota has had in nearly four decades. Once convened, the panel will exist as a place for South Dakotans to bring concerns about government fraud, conflicts-of-interest, and other potential wrongdoing. The compromise bill creating the board cleared the Legislature in the wake of protests over lawmakers’ repeal of a major ethics and campaign finance law approved by voters in November. Critics said the new accountability board is at best a tepid step in the right direction and at worst a symbolic move to give lawmakers cover from criticism following the repeal of Initiated Measure 22.

Tennessee – Jeremy Durham Dismisses Campaign Finance Audit, Points Finger in Fiery Letter
The Tennessean – Dave Boucher and Joel Ebert | Published: 5/3/2017

Former Tennessee Rep. Jeremy Durham offered justifications for his actions in response to 690 possible campaign law violations leveled by election ethics officials. While denying essentially any wrongdoing, the 235-page response presented to state election finance officials points the finger at legislators, overly broad state laws, and human error. The allegations against Durham range from using campaign funds to improperly buy sunglasses, suits, and spa products to inappropriately loaning thousands of dollars to his wife, a prominent fundraiser, and a professional gambler.

Texas – How the Federal Case Against John Wiley Price Fell Apart
Dallas News – Jennifer Emily, Gromer Jeffers Jr., and Kevin Krause | Published: 4/28/2017

Dallas County Commissioner John Wiley Price was found not guilty of bribery and six other counts by a federal jury that considered whether he was abusing his public office to collect about $1 million in secret profits over a decade. The jury deadlocked on four tax-related counts and the judge declared a mistrial on those charges. Price is likely the most well-known politician to ever be prosecuted by the federal government in Dallas. His confrontational style and focus on the issues of race and economic equality have made him a controversial figure, but his constituents have re-elected him for three decades. The acquittal is a surprising defeat for the U.S. Justice Department and FBI, who have spent a decade investigating and prosecuting Price.

Vermont – House Passes Ethics Commission Bill with Some Reluctance
VTDigger.org – Mark Johnson | Published: 5/2/2017

The Vermont House passed a bill creating a state ethics commission, overcoming objections about a requirement that lawmakers disclose their spouses’ sources of income. The legislation also prevents lawmakers from becoming lobbyists within a year of leaving their seats, and restricts holders of no-bid state contracts of $50,000 or more from making campaign contributions to certain candidates. A conference committee will have to iron out the differences between the House and Senate versions before the legislation goes to Gov. Phil Scott.

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.

The First Extraordinary Session of the 91^st General Assembly adjourned sine die on May 3, 2017.

One ethics bill was passed to cleanup legislation passed during the regular session.

Four other bills were passed, including a bill regarding the Arkansas Health Insurance Marketplace.

Gov. Asa Hutchinson is expected to sign all five special session bills.

Several ethics bills have been introduced in Michigan Legislature.

House Bill 4489 prohibits immediate family members of a public officer or employee from accepting gifts tending to influence the manner in which the public officer or employee or another public officer or employee performs official duties.

House Bill 4526 prohibits, for three years after leaving office, a former member of the Michigan Senate or House of Representatives who was, at any time, the chair of a standing committee, from making expenditures for or receiving compensation or reimbursement for actual expenses for lobbying equal to or exceeding the limit established to require registration as a lobbyist agent.

Similarly, House Bill 4527 prohibits any former member of the Michigan Senate or House of Representatives from being a lobbyist agent for two years after leaving office.

If passed, the bills will become effective 90 days after the end of the legislative session.

The Vermont House approved Senate Bill 8, a measure establishing a state ethics commission and providing greater transparency from those seeking public office.

If both houses can agree on a final version, a five-member ethics commission would accept complaints and assign them to other agencies for investigation. The commission would also compile a report on complaints for the legislature.

The bill would require financial disclosures from candidates and their spouses, with the Senate version requiring disclosure of income tax returns. The bill also prohibits lawmakers and other high-level employees from becoming a lobbyist for one year after leaving office and restricts holders of certain no-bid contracts from making campaign contributions.

A conference committee will now work out the differences before sending the bill to the governor. Vermont is one of five states without a state ethics commission.

The 91^st General Assembly adjourned sine die on May 1, 2017. A half hour after adjourning, the Legislature convened a special session.

The special session was called to address approving authorization for Arkansas Works waivers, restructuring the Arkansas Health Insurance Marketplace, cleaning up medical marijuana laws, and boosting long-term reserve funding for Arkansas.

The special session is likely to adjourn by the end of the week.

The Montana Legislature adjourned the 2017 regular session April 28, 2017.  House Bill 340, eliminating the Office of the Commissioner of Political Practices, made it through the House but was tabled in the Senate and did not pass.

Senate Bill 368, increasing contribution limits for both individuals and political action committees and placing the Office of the Commissioner of Political Practices under the jurisdiction of the state Attorney General, passed at the last minute and will be sent to the Governor.

The Montana Legislature will pick up again in January 2019.

Lobbying

“New Registration Details Manafort’s Lobbying for Group with Pro-Russia Ties” by Megan Wilson for The Hill

Campaign Finance

Massachusetts: “Regulator Sees ‘Evidence of Violations’ at Thornton Law Firm” by Andrea Estes for Boston Globe

Missouri: “Missouri Governor to Pay Fee for Using Nonprofit Donor List” by David Lieb (Associated Press) for U.S. News & World Report

Washington: “Washington State Senators Tap Surplus Campaign Money for Food, Clothes, Furnishings” by Joseph O’Sullivan for Seattle Times

Ethics

“Ethics Rules Waivers for Trump’s Team to Get Federal Scrutiny” by Bill Allison for Bloomberg.com

Florida: “Hooters ‘Calendar Girl’ and Playboy ‘Miss Social’ Were Artiles’ Paid Consultants” by Mary Ellen Klas for Miami Herald

Florida: “Miami Firm Involved in Anti-Hazing Program Did Not Detail Use of $1 Million from State” by Arek Sarkissian for Naples Daily News

Illinois: “Byrd-Bennett Sobs While Trying to Explain Corruption, Gets 4 1/2 Years in Prison” by Jason Meisner and Juan Perez Jr. for Chicago Tribune

Elections

“Guns and Religion: How American conservatives grew closer to Putin’s Russia” by Rosalind Helderman and Tom Hamburger for Washington Post

Legislative Issues

North Carolina: “North Carolina Judges Back Governor Over Election Changes” by Emery Dalesio (Associated Press) for U.S. News & World Report