National:

Blue Cities Want to Make Their Own Rules. Red States Won’t Let Them.
New York Times – Emily Badger | Published: 7/6/2017

In the last few years, Republican-controlled state Legislatures have intensified the use of what are known as pre-emption laws, to block towns and cities from adopting measures favored by the left. The states are not merely overruling local laws; they have walled off whole new realms where local governments are not allowed to govern at all. Several states are now threatening to withhold resources from communities that defy them and to hold their elected officials legally and financially liable. There is disagreement on who started the fight: states in stripping municipal power, or cities in seizing new roles that were not theirs to begin with.

Federal:

Is Donald Trump Jr.’s ‘I Love It’ Email a Smoking Gun or a Distraction?
Washington Post – Marc Fisher and David Nakamura | Published: 7/12/2017

When Donald Trump Jr. said “I love it” to the prospect of obtaining damaging information from friendly Russians about Hillary Clinton in June of last year, did that constitute a smoking gun? In one America, the answer was a pretty solid yes. Many media outlets and some Democrats straight-out declared the email the “smoking gun” in the investigation into whether the Trump campaign colluded with Russia to take down the Clinton candidacy. Many other news organizations hedged a bit, attaching a question mark to the term. But to supporters of President Trump, the gun was not smoking, it was just more of the same noise that has been cluttering up this presidency since its inception.

The Deep Industry Ties of Trump’s Deregulation Teams
New York Times – Danielle Ivory and Robert Faturechi | Published: 7/11/2017

President Trump entered office pledging to cut red tape, and within weeks he ordered his administration to assemble teams to aggressively scale back government regulations. But the effort is being conducted in large part out of public view and often by political appointees with deep industry ties and potential conflicts-of-interest. Most government agencies have declined to disclose information about their deregulation teams. But The New York Times and ProPublica identified 71 appointees, including 28 with potential conflicts. Some appointees are reviewing rules their previous employers sought to weaken or end, and at least two may be positioned to profit if certain regulations are undone.

Washington Firm Discloses Lobbying Senior Trump Officials on Macedonia
BuzzFeed News – John Hudson | Published: 7/6/2017

Mercury Public Affairs is providing new details about a mysterious U.S. Justice Department filing it made in February for lobbying work related to Macedonia. The firm says it contacted aides to senior Trump administration officials on issues related to Macedonia during a 12-day period in February. Mercury never received payment for the work, according to the document. The Foreign Agents Registration Act form is a retroactive update to a February filing that gained attention after two reports pointed out Mercury did not disclose a foreign agent in the filing. The new form still does not list a foreign agent – it simply lists the Libertas Foundation of which little is known, as the entity the firm is working on behalf of.

From the States and Municipalities:

California: California Lawmakers Want Data on Lobbyists’ Race, Sexual Orientation
Sacramento Bee – Taryn Luna | Published: 7/10/2017

Leaders of the Legislative Asian Pacific Islander, Black, Jewish, Latino, LGBT, and Women’s caucuses in the California Legislature asked 400 lobbying firms, associations, and principals to provide them with the race, ethnicity, gender, and openly gay or lesbian orientation of their employees. Lawmakers said the request is intended to expand the conversation about cultural diversity in the Capitol workforce. Some lobbyists applauded the move for forcing a male-dominated industry to think about its hiring practices. Others expressed concern about how the data could be used against them if their employees are not diverse enough for the lawmakers.

Delaware: Wilmington Ethics Commission Quietly Disbanded under Mayor Williams
Wilmington News Journal – Christina Jedra | Published: 7/12/2017

The Wilmington Ethics Commission quietly dissolved after former Mayor Dennis Williams’ administration allowed members’ terms to expire. City officials have “no idea” how this happened, said Gary Fullman, who was Williams’ chief of staff. It appears sometime after Mayor Mike Purzycki took office in January, his administration became aware of the situation. After being told a story would be published by The Wilmington News Journal on the matter, the city issued a press release saying the board had reformed, announcing five new members and two returning. The members will need to be confirmed by the city council.

District of Columbia: D.C. Business Groups Fight Proposed Pay-to-Play Regulations
Washington Post – Peter Jamison | Published: 7/10/2017

Representatives of District of Columbia business organizations argued against proposed limits on political donations by companies that do business with the city, saying widespread suspicions that contractors have undue influence are unwarranted. Opponents of the “pay-to-play” regulations being mulled by council members relied on an argument long favored by critics of campaign finance laws: that proven instances of elected officials making decisions based on campaign donations are rare, if not nonexistent.

Hawaii: Can Revamped Honolulu Ethics Commission Rebuild Its Credibility?
Honolulu Civil Beat – Anita Hofschneider | Published: 7/13/2017

Honolulu Ethics Commission Executive Director Jan Yamane must work to rebuild an agency that lost its bite in recent years due to internal strife and outside interference from Mayor Kirk Caldwell’s administration. The commission has been relatively quiet since Yamane was hired in August to replace Chuck Totto, who had been the agency’s executive director for nearly 16 years. Yamane said the commission now has a backlog of 40 to 50 complaints, on top of about 60 pending investigations. Yamane has been busy trying to get a handle on the hefty workload and figure out how the commission can be more efficient and effective. There are about 10,000 city employees and only five ethics commission staffers, only three of which can perform investigations.

Iowa: Trial Begins in Lawsuit Alleging Toxic ‘Boys’ Club’ at Iowa Statehouse
Des Moines Register – Grant Rodgers | Published: 7/9/2017

A jury will hear testimony in a lawsuit that claims the Iowa Capitol sheltered a toxic “boys’ club” where some male senators and their staffers spoke freely about sex and women’s bodies with few or no consequences. Kirsten Anderson, a former communications director for the Senate Republican caucus, brought the lawsuit after being fired in May 2013, just seven hours after giving her boss a memorandum asking for an investigation into workplace culture at the Capitol and for stronger policies against harassment. Republican leaders have said Anderson was fired because the quality of her work was deteriorating. But court documents filed by Anderson portray scenes where she and other female staffers were forced to listen to comments about the size of women’s breasts and gossip about colleagues’ sex lives.

Montana: Legislators Face No Punishment for Ignoring Financial Disclosure Forms
The Missoulian – Jayme Fraser | Published: 7/3/2017

Montana’s system to monitor conflicts-of-interest among legislators received a failing grade in an analysis by the Center for Public Integrity. Some lawmakers ignore or flout the rules that do exist and no one has been sanctioned for breaking them in decades. Although legislators cannot take their seat without filing a financial disclosure form, no one ensures state officials fill them out completely. The two-page document was intended to be the baseline by which the public can gauge if elected officials and state employees misuse public posts. It is a key component of the law designed to fulfill a requirement in the Montana Constitution that they must work for the public and not themselves.

New York: Appeals Court Overturns Conviction of Sheldon Silver
Albany Times Union – Matthew Hamilton | Published: 7/13/2017

An appeals court overturned the conviction of former New York Assembly Speaker Sheldon Silver, who was sentenced to 12 years in prison after being found guilty of accepting nearly $4 million in bribes and kickbacks disguised as legal payments from a pair of law firms that had business before the state. The appeals court cited a U.S. Supreme Court ruling, made after Silver’s conviction, which narrowed the definition of the kind of official conduct that can serve as the basis of a corruption prosecution. The U.S. Court of Appeals for the Second Circuit agreed with Silver’s contention that jury instructions in his trial were erroneous in light of the decision handed down in McDonnell v. United States.

North Carolina: Lobbyist Fundraiser Invite Raises Questions
WRAL – Laura Leslie | Published: 7/10/2017

Current lobbyist and former state Rep. Mike Hager is co-hosting a fundraiser for North Carolina Lt. Gov. Dan Forest, but says he has not broken the state law against political contributions by lobbyists. Watchdogs say it is confusing and gives the appearance of impropriety. “I’ve never worried a whole lot about what people think,” Hager said. “It’s the actuality of the law that we’re complying with. That’s the only issue I have.”

Pennsylvania: Convicted Ex-Lawmakers Enjoy Access as Lobbyists
Pittsburgh Tribune-Review – Debra Erdley and Kevin Zwick | Published: 7/9/2017

Numerous former lawmakers, legislative staff, and cabinet officials in Washington, D.C., as well as state capitals across the country, have turned to lobbying. Pennsylvania requires a one-year waiting period before lawmakers and agency officials can begin lobbying former colleagues. A group of Pennsylvania lawmakers-turned-lobbyists spent the waiting period behind bars. They include former House Speakers John Perzel and Bill DeWeese, and Senate Majority Leader Joe Loeper – all of whom left office for prison after being convicted of abuses of power.

Texas: Dallas Wants $8,000 Back from Philip Kingston for Missing Too Many Council Meetings
Dallas News – Tristan Hallman | Published: 7/8/2017

Officials say city council member Philip Kingston owes Dallas taxpayers thousands of dollars. Chief Financial Officer Elizabeth Reich told Kingston in a memorandum that he missed too many meetings in the past 12 months and needs to pay the city back $8,160 of his $60,000 salary. But Kingston said he is disputing the city’s calculations and does not plan to return any money. The unusual quarrel and financial penalty stem from a city charter provision. If council members miss more than 10 percent of the total “regular meetings” in a compensation year, their pay is to be docked by the same percentage of meetings they missed.

Virginia: How a Shadowy Nonprofit Spent $184K in Virginia’s Governor’s Race with Almost Total Anonymity
Richmond Times-Dispatch – Graham Moomaw | Published: 7/7/2017

Virginians for a Better Future incorporated in Delaware as a social welfare organization two weeks before Virginia’s gubernatorial primaries, and then spent $184,000 on an advertising campaign to support Lt. Gov. Ralph Northam’s bid for the Democratic nomination and attack his opponent, Tom Perriello. The identity of the donor or donors behind the ad campaign might never be disclosed. Other states have taken steps to close reporting loopholes for 501(c)(4)s, but a bill to force social welfare groups to disclose their donors failed this year in the Virginia General Assembly.

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 Oregon Legislature adjourned July 7, three days before its July 10 constitutional deadline.

In the final days of the session, lawmakers passed a $5.3 billion package of taxes and fees to fund transportation upgrades and another bill to reduce state spending by $200 million over the next two years.

However, lawmakers failed to pass lobbying reforms introduced at the request of Gov. Kate Brown. Following a flurry of last-minute activity in the House to pass Senate Bill 43, a bill to modify Oregon’s lobbyist registration and reporting requirements, the Senate opted to let the bill die.

National:

CNN Story About Source of Trump Wrestling Video Draws Backlash
New York Times – Daniel Victor | Published: 7/5/2017

A CNN story about an anonymous Reddit user who created a widely circulated video of President Trump wrestling the network’s logo to the ground has inspired multiple backlashes. Some criticized it as a form of blackmail. Others raised issues of journalism ethics over the network granting conditional anonymity to the user. The 28-second video and its source have been the subject of questions since Trump tweeted it as he continued his attacks on the news media. The tweet, which was retweeted by the official presidential account, has become Trump’s most-shared post on Twitter.

The New York Times Will Fly You Around the World for $135,000. Is That a Problem?
Washington Post – Paul Farhi | Published: 7/5/2017

The New York Times is organizing and promoting a 26-day tour of nine countries, which it calls “Around the World by Private Jet: Cultures in Transformation.” The price is $135,000 per person, and the traveling party will be joined by the newspaper’s Washington bureau chief Elisabeth Bumiller, columnist Nicholas Kristoff, and publisher Arthur Sulzberger, Jr. The trip and other Times-sponsored travel packages are a lucrative source of income at a time when news organizations are under increasing financial pressure. But the newspaper’s trips raise a question among journalism ethics experts about ethics and access: Is The Times effectively selling its journalists to private interests? Could, for example, corporate lobbyists or political operatives sign on and seek to influence coverage?

Federal:

Federal Ethics Chief Who Clashed with White House Announces He Will Step Down
Washington Post – Rosalind Helderman and Matea Gold | Published: 7/6/2017

Office of Government Ethics (OGE) Director Walter Shaub announced he is resigning. He will leave nearly six months before the end of his term to take a position with the Campaign Legal Center. Shaub repeatedly challenged the Trump administration on ethics issues. His outspokenness drew the ire of administration officials and earned him near-cult status among Trump’s opponents. Shaub said no one in the White House or the administration pushed him to leave, but he felt he had reached the limit of what he could achieve in this administration within the current ethics framework. The OGE’s chief of staff, Shelley Finlayson, is expected to assume the role of acting director, although Trump could appoint another senior OGE official to serve temporarily until he chooses a permanent replacement.

Florida Lobbyist Turning Trump Ties into Mega-Millions
Center for Public Integrity – Rachel Wilson | Published: 7/5/2017

Brian Ballard has long been a major lobbyist in Florida. Now, Ballard – a major Donald Trump fundraiser who also worked on the president’s transition – is out to prove he can translate his state-level lobbying success into policy victories for a slew of new clients in Washington, D.C. And he must ply his trade in the nation’s capital without looking as if he is selling access to a president who has promised to stand up to special interests. In just five months, Ballard Partners’ federal lobbying operation has generated nearly $4 million in current and contracted business from foreign and domestic lobbying clients. That is as much lobbying money as some established firms make in a year.

Justice Dept. Compliance Expert Whose Contract Ended Early Says Trump Conflicts Made Work Feel Hypocritical
Washington Post – Matt Zapotosky | Published: 7/3/2017

As a contractor for the U.S. Justice Department, Hui Chen would ask questions about companies’ inner workings to help determine whether they should be prosecuted for wrongdoing. But working in the Trump administration, Chen began to feel like a hypocrite. How could she ask companies about their conflicts-of-interest when the president was being sued over his? Though her contract was not up until September, Chen left the department in late June, then laid bare her reasons in a post on LinkedIn. The post drew attention because of Chen’s position and how blunt she was on the circumstances of her departure.

From the States and Municipalities:

Florida: Florida’s Departing Fiscal Watchdog Used Public Scrutiny as a Weapon
Bradenton Herald – Mary Ellen Klas (Miami Herald) | Published: 7/5/2017

Jeff Atwater, who resigned recently as Florida’s chief financial officer, knows where every penny of the state’s $83 billion budget goes. He also knows where to find the waste, and he has tried to expose it. expose it. Florida will spend more than $60 billion this year hiring outside contractors to do state work. But, as Atwater found when he took the job in 2011, state agencies often do not hold vendors accountable for the services they agreed to provide. Agencies allow them to charge for things not included in the bids, fail to recover damages when the vendor will not complete a task correctly or on time, and renew contracts when a vendor fails. “You don’t have to go far to track that back to a lobbyist who had a client,” Atwater explained.

Kansas: Kobach: Kansas won’t give Social Security info to Kobach-led voter commission at this time
Kansas City Star – Bryan Lowry | Published: 7/1/2017

Kansas Secretary of State Kris Kobach co-chairs President Trump’s voter fraud commission, which is tasked with finding evidence to support the president’s unsubstantiated claim that there was widespread voter fraud in the 2016 election. Kobach recently sent letters to all 50 states asking them to provide the commission with their entire voter files. The request specifically spelled out sensitive pieces of information the commission wants to obtain. As secretary of state, Kobach is tasked with supplying Kansas’s data to the Trump commission. There is just one problem: he will not be able to fully comply with his own request.

Massachusetts: Lawmakers Asked to Hit Up Lobbyists, Companies to Fund National Confab
Boston Globe – Jim O’Sullivan | Published: 6/29/2017

Massachusetts Senate Majority Leader Harriette Chandler sent an email identifying the special interests, lobbyists, and corporations that can be targeted for a solicitation appeal to help fund this summer’s National Conference of State Legislatures annual meeting in Boston. They include companies that have business before the state Legislature: retailers, banks, telecommunications firms, insurers, utilities, and a wide range of health-care providers. Organizers hope to raise roughly $2.2 million for the meeting. The document advertises special access to the week’s events for donors, and perhaps more importantly, a chance to stay on the radar of local decision-makers.

Montana: Legislature Is Rife with Conflicts of Interest – and They’re Legal
Helena Independent Record – Jayme Fraser | Published: 7/2/2017

More than a dozen state leaders said it is not unethical to bring bills that would advantage their professions or properties so long as others received the same gain and the link is openly shared. Most lauded the fact that Montana has a part-time, citizen Legislature where farmers sit on agricultural committees, lawyers craft state criminal laws, teachers tweak education policy, and business owners set industry regulations. Experience makes them experts, they say. But the Center for Public Integrity gives Montana an “F” grade for its conflict disclosure laws, which make it difficult for the public to spot self-serving votes or sanction those who enrich themselves in public office.

New Jersey: Hudson Attorney Files Ethics Complaint Against Christie Over ‘Beachgate’
Newark Star-Ledger – Michaelangelo Conte (Jersey Journal) | Published: 7/6/2017

A complaint was filed against New Jersey Gov. Chris Christie, saying he used his position unethically when he and family members basked in the sun at Island Beach State Park while the public was turned away because of a state shutdown. In accordance with the Plain Language Guide to New Jersey’s Executive Branch Ethics Standards, no person of the executive branch may obtain a “special benefit” as a result of their position …,” according to the complaint filed with the State Ethics Commission by attorney Mario Blanch.

New York: A Constitutional Convention for New York? This May Be the Year
New York Times – Lisa Foderaro | Published: 7/5/2017

Every 20 years, New Yorkers have the chance to vote whether they want to hold a constitutional convention to amend, tweak, or otherwise improve the founding document of the state. For the past half-century, voters have demurred. This year, however, academics, good-government groups and others believe the outcome of the ballot question in November may be different. And it has something to do with the current occupant of the White House. “Trump’s election emphasizes how valuable it is for states to chart their own course,” said Peter Galie, a political science professor at Canisius College.

Pennsylvania: Contractor’s Criminal Record Didn’t Discourage Business with Allentown or Reading
Allentown Morning Call – Emily Opilo | Published: 6/30/2017

Mark Neisser, then president of JCA Associates, and two other employees of the engineering firm pleaded guilty in 2004 to tax offenses for failing to report about $100,000 in printing work done for New Jersey Democrats. Along with fines and probation, Neisser was barred from working at JCA. Within a year, however, he resurfaced at T&M Associates, a New Jersey engineering firm that bought out JCA. Neisser’s record apparently did not alarm Allentown Mayor Ed Pawlowski, who accepted thousands of dollars in campaign contributions from T&M’s PAC, and raised no red flag for city officials, which awarded more than $380,000 in contracts to the firm. Neisser pleaded guilty in April to a federal corruption charge for his role in “pay-to-play” schemes in Allentown and Reading.

Texas: City OK’s Park Swings Thanks to Pint Sized Lobbyist
Fort Worth Telegram – Ann Beck | Published: 7/6/2017

When she saw that her local park did not have swings, six-year-old Maggie Fortner took matters into her own hands. She wrote a letter – in pencil and folded a half-dozen times – requesting the addition of a swing set at Donald R. Barg Park. It was mailed by Maggie’s grandmother and made its way to Matt Young, the director of parks and recreation for the city of Mansfield, who not only took notice, but action. The swings were approved and Maggie, now seven, was the guest of honor at the recent ceremony where they were opened to the public. “I’m just really excited for my swing to come, so I can swing on it every day,” Maggie said. “But I’m going to share, even with my sisters. It’s for everyone.”

Texas: Texas Supreme Court Rejects Tea Party Challenge to Campaign Finance Laws
Texas Tribune – Jim Malewitz | Published: 6/30/2017

The Texas Supreme Court upheld the state’s ban on direct corporate political donations. The Texas Democratic Party sued the King Street Patriots for violating the ban on corporate contributions by making in-kind donations to Republicans groups or causes. Democrats argued that if the group wanted to contribute to political campaigns, it should abide by disclosure rules. The justices also upheld state requirements that campaigns report contributions and expenditures, and ruled private groups can sue over alleged violations.

Vermont: Dollars Tell Only Part of Story of Pot Legalization Advocacy
VTDigger.org – Elizabeth Hewitt | Published: 7/4/2017

Despite a constant drum of advocacy on both sides of marijuana legalization in Vermont this year, lobbying reports show the sums spent were relatively modest. But the finance disclosures tell just part of the story of advocacy on the issue. The numbers on both sides added up to far less than has been spent on hot button issues in Montpelier in the past. The 2015 push to impose a sales tax on soft drinks drew more than $500,000 in spending by the American Beverage Association alone in the first quarter of the year, for instance. On the issue of marijuana, both sides claim grassroots support drives their agenda.

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.

On June 30, the North Carolina General Assembly adjourned. The resolution to adjourn has lawmakers scheduled to reconvene in August and September.

The session scheduled for August 3, 2017 will primarily address any veto overrides; however, the adjournment resolution grants lawmakers the ability to use the session to take up measures that got stuck in House and Senate negotiations in the final weeks of the regular session.

The September 6, 2017, session will mostly focus on redistricting.

The adjournment resolution also set the regular session to reconvene on May 16, 2018.

Gov. Bill Walker signed a shutdown-averting $8.8 billion state operating budget into law; however, the Alaska Legislature remains in session to address oil and gas tax credits.

The 30-day special session ends July 16.

Lawmakers have set a record this year in Juneau for the longest time spent consecutively in session.

The Maine 2017 regular session recessed on July 3, 2017.

The Legislature failed to pass a budget on June 30, 2017, forcing Gov. Paul LePage to declare a state of civil emergency in the absence of a biennial budget. The Legislature worked late on July 3, 2017, to pass the $7.1 billion budget.

LePage signed the budget the following morning and ended the civil emergency.

Despite working into the early hours of Saturday morning, the Delaware Legislature adjourned the 2017 regular session on July 1, 2017, without passing a 2018 budget.

In order to address the Legislature’s failure, Gov. John Carney called a special session for July 2, 2017.

The special session adjourned on July 2, 2017, and Carney signed a $4.1 billion budget for Fiscal Year 2018.

The New York Legislature’s two-day special session adjourned sine die on June 29, 2017.

Gov. Andrew Cuomo called the special session to enact legislation extending mayoral control over the city of New York’s school district. The legislation extends city control over the city district for two years.

Barring another special session, the Legislature is set to return in January 2018.

All the state government and ethics news you might have missed in this weeks video digest!

Federal:

Former Trump Campaign Chairman Paul Manafort Files as Foreign Agent for Ukraine Work
Washington Post – Tom Hamburger and Rosalind Helderman | Published: 6/27/2017

Paul Manafort, who was forced out as President Trump’s campaign chairperson last summer after infighting and criticism about his business dealings with pro-Russian interests, disclosed his consulting firm had received more than $17 million over two years from a Ukrainian political party with links to the Kremlin. The filing serves as a retroactive admission that Manafort performed work in the U.S. on behalf of a foreign power, Ukraine’s Party of Regions, without disclosing it at the time, as required by law. The disclosure hints at the vast fortunes available to top American political consultants plying their trade in other countries.

Jack Abramoff Registers as a Foreign Agent
The Hill – Megan Wilson | Published: 6/23/2017

Jack Abramoff is a registered lobbyist again. Abramoff retroactively registered after he attempted to set up a meeting between then-President-elect Donald Trump and the president of the Republic of Congo. The Foreign Agents Registration Act requires people to register with the Justice Department if they do any consulting, lobbying, or public relations work for a foreign government. They must register within 10 days of agreeing to act as a foreign agent and provide updates every six months. The scandal surrounding Abramoff led to the overhaul of federal lobbying laws in 2007 and 20 convictions or guilty pleas, including from former U.S. Rep. Bob Ney.

Lawmakers Want Trump’s Tax Returns, but Won’t Release Their Own
Roll Call – Stephanie Akin | Published: 6/26/2017

Roll Call sent a request to all U.S. senators and representatives to release their tax returns. Only 37 responded, and of those, six provided the documents. Roll Call also reviewed public documents and media reports to determine lawmakers’ positions on the release of President Trump’s tax returns. At least 237 lawmakers have called on the president to produce his returns. The reluctance among members of Congress to release their own returns prevents voters from learning more about members’ personal financial decisions that could affect how they vote.

President Trump Angrily Lashes Out at ‘Morning Joe’ Hosts on Twitter
Washington Post – Jenna Johnson | Published: 6/29/2017

President Trump faced a swift and bipartisan backlash after he assailed the television host Mika Brzezinski in unusually personal and vulgar terms, the latest of a string of escalating attacks by the president on the national news media. Trump has fumed for weeks about his coverage on “Morning Joe,” where Brzezinski and Joe Scarborough have been increasingly blistering in their commentary about the Trump administration. They have openly questioned Trump’s mental state, comments that particularly upset the president, according to a senior administration official.

From the States and Municipalities:

Arkansas – Arkansas Panel Advises Limit to Pot Lobbyists’ Pay
Arkansas Online – Brian Fanney | Published: 6/24/2017

An applicant for a license to operate a medical-marijuana facility cannot hire a lobbyist on a contingency basis, the Arkansas Ethics Commission said in an advisory opinion. Attorney Brandon Lacy represents a business that wants licenses from the Arkansas Medical Marijuana Commission to grow or sell medical marijuana. He asked two questions: Can a lobbyist agree to be compensated with a percentage of a medical marijuana business’s revenue if it successfully gains a license? Can a lobbyist be compensated with ownership in the business regardless of whether it is licensed?

Connecticut – Ethics Commissioner Charged in Prostitute Mixup
Connecticut Post – Daniel Tepfer | Published: 6/27/2017

An ethics commissioner in Connecticut has been charged with patronizing a prostitute after he was pepper-sprayed during what police say was a mix-up with the wrong woman. Police said Noel Kayo, an ethics commissioner in Bridgeport, had arranged to meet a woman at a hotel in Stratford. Police say another woman was waiting at the hotel at the same time for payment for photographs for which she previously posed. Police say the woman got into Kayo’s car, demanding her money while he argued for his services. The woman and her boyfriend both used pepper spray on Kayo, who denies the prostitution charge, saying he was a victim of attempted robbery. He said he will not resign.

District of Columbia – ‘It’s the End of Small Talk in Washington’
Politico Magazine – Daniel Lippman and John Harris | Published: 6/30/2017

If Donald Trump’s arrival in the White House has torn at the social fabric across the country, it has interrupted the rhythms and culture of daily life nowhere as much as the city where he now lives. Like many politicians, he ran against Washington, but far more than any president in memory, that outsider rhetoric has translated into outsider governance, a disdain for the capital that seems to translate into genuine disconnection from its existing networks. For Trump’s supporters, this amounts to a promise kept, a disruption of America’s permanent governing class. But it also risks impeding his agenda by cutting him off from some of the levers that can help a new president govern, or at least navigate the unwritten rules and networks of the capital to get things done.

Florida – Using Ethics Loophole, Sen. Lauren Book Votes to Give Her Nonprofit $1.5 Million
FloridaBulldog.org – Francisco Alvarado | Published: 6/22/2017

Florida Sen. Lauren Book voted to approve a state appropriations bill that included $1.5 million for Lauren’s Kids, the nonprofit she founded and leads as its $135,000-a-year chief executive officer. A loophole in the Florida Senate’s ethics rules allowed Book to cast her vote despite her apparent conflict-of-interest. The same loophole also meant she did not have to disclose her conflict publicly. Lauren’s Kids, whose chairperson is prominent lobbyist Ron Book, the senator’s father, has in a just few years become one of the Legislature’s most favored private charities. Since 2012, Lauren’s Kids has bagged more than $10 million in taxpayer-funded grants.

Georgia – Judge Tosses Commissioner Tommy Hunter’s Legal Challenge to Ethics Punishment
Gwinnett Daily Post – Curt Yeomans | Published: 6/28/2017

The ongoing saga involving Gwinnett County Commissioner Tommy Hunter and his comments on Facebook took a new turn when a judge threw out his legal challenge to the ethics board that recommended his reprimand. Superior Court Judge Melodie Snell Conner’s ruling was a blow to the Hunter camp’s assertion that the ethics complaint filed against him by Atlanta resident Nancie Turner and, indeed, the county’s entire ethics process was unconstitutional. Hunter’s social media comments included calling U.S. Rep. John Lewis a “racist pig” and referring to Democrats as “Demonrats” and “Libtards,” and quickly led to protests at commission meetings.

Illinois – Emanuel Hints at Ethics Law Rewrite After Lobbying Violations Found in His Emails
Chicago Tribune – Bill Ruthhart | Published: 6/28/2017

Mayor Rahm Emanuel accused the Chicago Board of Ethics of turning “average citizens” into lobbyists in its haste to bolster its image as a strong watchdog. Emanuel weighed in on the controversy after the board found that his close friend and campaign donor Jim Abrams, as well as the husband of Ald. Sophia King, were lobbying the mayor through his private emails but failed to register as lobbyists. “We cannot collapse a lobbyist and a citizen, and that’s what’s happened,” said Emanuel, who did not say whether he would seek to change the law himself. “What has happened here, in the interest of reform, we have lost our perspective.”

New Mexico – State Ethics Panel Is a Work in Progress
Albuquerque Journal – Dan Boyd | Published: 6/21/2017

New Mexico lawmakers approved the creation of an independent ethics commission during this year’s legislative session, but there is still much unsettled about how the body would function, even if it is approved by voters next year. That is because what lawmakers approved during the was essentially the framework for an ethics commission, with the assumption specific powers and procedures would be set at a later date. The approach has raised concern among some advocacy groups, who are pushing lawmakers to start talking details in interim legislative committee hearings this summer and fall.

Pennsylvania – Philadelphia District Attorney Seth Williams Pleads Guilty in His Federal Corruption Trial
Philadelphia Inquirer – Jeremy Roebuck | Published: 6/29/2017

Philadelphia District Attorney Seth Williams pleaded guilty to a corruption charge, resigned from office, and was sent immediately to jail. Williams pleaded guilty to a single count of accepting a bribe from a businessperson in exchange for legal favors. The move came after weeks of damaging testimony against Williams at his federal trial. He was also charged with fraudulently using thousands of dollars from his campaign fund for personal expenses, misusing city vehicles, and misappropriating money intended to fund his mother’s nursing home care. Before he was indicted, Williams was fined $62,000 by the city ethics board, its largest fine ever, for accepting improper gifts.

Vermont – Feds Looking into Jane Sanders Over Real Estate Deal
Burlington Free Press – Wilson Ring (Associated Press) | Published: 6/26/2017

U.S. Sen. Bernie Sanders and his wife, Jane Sanders, have hired prominent defense attorneys amid an FBI investigation into a loan she obtained to expand Burlington College while she was its president. A complaint accuses Jane Sanders of distorting donor levels in a 2010 loan application for $10 million to purchase 33 acres of land for the institution. Prosecutors might also be looking into allegations that Sen. Sanders’ office inappropriately urged the bank to approve the loan.

Washington – Lawsuit Challenges Seattle Campaign-Contribution Vouchers
Minneapolis Star Tribune – Gene Johnson (Associated Press) | Published: 6/28/2017

The Pacific Legal Foundation is suing Seattle over its new “democracy voucher” program for publicly funded political campaigns, which was passed by voters in 2015 and is being used for the first time in this year’s city council races. Under the program, Seattle’s voters decided to tax themselves $3 million a year in exchange for four $25 vouchers they can sign over to candidates. Supporters say it is a novel way to counter the effect of big money in politics and to help lesser-known candidates communicate their views. But the lawsuit says it forces people to pay taxes to support candidates they do not necessarily agree with in violation of their free-speech rights.

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.

On June 26, the West Virginia Legislature adjourned its special session sine die. Lawmakers approved a budget after months of debate to resolve a $500 million shortfall in the 2018 fiscal year budget.

The state budget cuts funding for higher education and the Department of Health and Human Resources but avoids a government shutdown that would have occurred July 1 if the budget had not been in place.

Gov. Jim Justice allowed the budget bill to become law without his signature.

The 2017 legislative session adjourned shortly before midnight on June 21, 2017.

Lawmakers adjourned the session without a deal to extend New York City Mayor Bill de Blasio’s control over New York City Schools. The current agreement lapses on June 30, 2017.

Assembly Speaker Carl Heastie stated there is no plan to return as the Assembly is comfortable with the bill they passed in May.

Heastie’s statement is available at http://assembly.state.ny.us/Press/20170622/.

Becky Campbell is here covering the state government and ethics news from around the country in this week’s video digest!

National:

As Pot Comes Out of the Black Market, Regulators Face Scrutiny
Boston Herald; Associated Press –   | Published: 6/21/2017

Recent cases in Colorado and Washington are the first known instances of current or former marijuana regulators being accused of having improper dealings with the industry. The two recreational marijuana states are the nation’s oldest, approving legal weed in defiance of federal law in 2012. Watchdogs say the Colorado and Washington cases should spur states to beef up ethics commissions charged with monitoring conflicts-of-interest by government employees. Michigan, a medical-marijuana state, passed a 2016 law banning even relatives of its pot oversight board members from having any financial stake in the marijuana industry.

The Not-So-Bitter Rivalry of Dean Baquet and Marty Baron
Politico – Joe Pompeo | Published: 6/19/2017

The Washington Post’s Marty Baron and Dean Baquet of The New York Times are the two most important newspaper editors in America right now, at a time when the news media are tackling the most consequential story of the past 40 years. Donald Trump’s presidency has revved up the competition for news organizations far and wide; big and small; print, broadcast, and digital. In the process, he has sparked a resurgence of storied legacy outlets like The Times and The Post, each of which has struggled with changes in the news business while doomsayers augured its demise. As with the rest of the media, their “Trump bump” has been a boon in terms of scoops and subscribers.

Federal:

Despite Concerns About Blackmail, Flynn Heard C.I.A. Secrets
New York Times – Matt Apuzzo, Matthew Rosenberg, and Adam Goldman | Published: 6/20/2017

Senior U.S. intelligence officials knew as early as January that former national security adviser Michael Flynn could have been vulnerable to Russian blackmail. Despite officials’ knowledge of the risks associated with Flynn, he continued to sit in on meetings during which President Trump was briefed on sensitive intelligence. It is unclear whether CIA Director Mike Pompeo, who briefed Trump on intelligence while Flynn sat nearby, was aware of officials’ concerns about Flynn. Many of Trump’s political problems, including the appointment of a special counsel and the controversy over the firing of the FBI director, James Comey, can ultimately be traced to Flynn’s stormy tenure.

Trump Says He Did Not Tape Comey Conversations
New York Times – Mark Lander | Published: 6/22/2017

President Trump said he did not record his conversations with James Comey. the FBI director he fired amid the Justice Department’s probe into the Trump campaign’s possible ties to Russia. The president’s Twitter messages left open the possibility the conversations may have been taped without his knowledge. But they largely confirmed the suspicions of outsiders that Trump had been leveling a baseless threat at Comey when he wrote, “James Comey better hope that there are no ‘tapes’ of our conversations before he starts leaking to the press!” Some legal experts have said Trump’s threat could be used in an obstruction of justice case against him, since it could be interpreted as putting pressure on Comey not to discuss their conversations about the FBI’s Russia investigation.

From the States and Municipalities:

Arizona: Axiom Partners Rename Lobbying Firm as Bribery Case Unfolds
Arizona Republic – Ronald Hansen | Published: 6/21/2017

A month after a federal bribery case shook Arizona’s lobbying community, the firm whose prominent exe features the same staff as Axiom Public Affairs, without lobbyist Jim Norton, said Kelsey Lundy, the firm’s managing partner. Once viewed as among the most politically connected lobbying firms in Arizona, Axiom’s run came crashing down after Norton’s may indictment in a case alleging he was a conduit for bribes paid by developer George Johnson to former Arizona Corporation Commissioner Gary Pierce through his wife.

California: Lobbying Firm Fined $4,000 for Violating Gift Limit Buying Dinner for Former State Sen. Ronald Calderon
Los Angeles Times – Patrick McGreevy | Published: 6/19/2017

Mercury Public Affairs agreed to pay a $4,000 fine for violating the $10 gift limit on lobbying firms when it provided dinners worth $200 to former state Sen. Ronald Calderon and his wife. The violation was found by a random audit by the state Franchise Tax Board. In October, Calderon was sentenced to 42 months in federal prison after he pleaded guilty in a public corruption case unrelated to the Mercury dinner.

Connecticut: Lobbyists, Corporate PACs Help Legislator Pay for His Travels as RNC Member
Hartford Courant – Jon Lender | Published: 6/17/2017

State Rep. John Frey travels all over the country for meetings he attends as one of Connecticut’s two members of the Republican National Committee (RNC). But Frey does not pay for any it – flights, dining, hotel rooms, and sometimes car service to and from the airport – because his costs are reimbursed by a political action committee he set up six years ago called Leadership Connecticut PAC. Its stated purpose is to support federal candidates for the U.S. House and Senate, but its main activities, arguably, have been to stage the annual fundraisers to sustain itself and to pay for the travels of Frey and Patricia Longo, his fellow RNC member until she retired last year.

Florida: The Miami Beach Mystery PAC Is Under State Investigation
Miami Herald – Nicholas Nehamas, Joey Flechas, and David Ovalle | Published: 6/20/2017

A corruption probe is underway into a controversial political group linked to Miami Beach commissioner and mayoral candidate Michael Grieco. At least one donor to the PAC has been subpoenaed by the Miami-Dade state attorney’s office, according to a defense attorney representing the donor. The list of donors to People for Better Leaders is stocked with Miami Beach vendors, lobbyists, and developers with business before the city. Investigators with the state’s corruption task force may be seeking to learn if those donations were a quid pro quo for Grieco’s political favor. Grieco may also have broken a city law that bans candidates and elected officials from asking vendors and lobbyists for donations, either directly or through a third-party.

Hawaii: What Honolulu Lobbyists Don’t Tell You
Honolulu Civil Beat – Anita Hofschneider | Published: 6/19/2017

Honolulu does not require lobbyists to provide any details about how they spend money. About 85 percent of the lobbyists who filed reports said they did not spend anything last year. Nearly three dozen registered lobbyists did not submit any reports, even though mandatory forms were due six months ago. Jan Yamane, who took over the city Ethics Commission last fall, said the current lobbying disclosure process is not working. “We need to debrief this thing, hit the reset button and completely overhaul this process,” Yamane said.

Illinois: Emanuel Friend, Alderman’s Husband Both Illegally Lobbied Mayor Via His Personal Email: Ethics board
Chicago Tribune – Bill Ruthhart | Published: 6/16/2017

A close friend of Chicago Mayor Rahm Emanuel, as well as the husband of a city council member, face fines for lobbying the mayor through his private emails but failing to register as lobbyists. Alan King, husband of Ald. Sophia King, and James Abrams are the latest targets of the reinvigorated city Board of Ethics. Under the law, Abrams could face a potential fine of more than $520,000. King could face a fine of more than $500,000. Board of Ethics Chairperson William Conlon has signaled the board is unlikely to hand out exorbitant maximum penalties. But Conlon argued the fine needs to be “enough to send a message.”

Kentucky: Ethics Panel Appeals Ruling That Allows Lobbyists to Give Gifts, Money to Lawmakers
Lexington Herald-Leader – Jack Brammer | Published: 6/21/2017

The Kentucky Legislative Ethics Commission will appeal a recent federal court ruling that allows lobbyists to give gifts and campaign donations to state lawmakers. “We thought it too important not to appeal,” said commission Chairperson George Troutman. A lawsuit filed by State Sen. John Schickel and two Libertarian political candidates argued the ethics laws violate their constitutional rights to free speech and equal protection by restricting their access to people who want to help them. State regulators countered that the laws were meant to prevent bribery at the Capitol. The Registry of Election Finance, the other defendant in the case, has yet to decide whether to appeal.

Kentucky: Fired Lawyer to Get Settlement from Kentucky Over Her ‘Whistleblower’ Case About Sex Toys
Louisville Courier-Journal – Deborah Yetter | Published: 6/15/2017

Jacqueline Heyman, a former lawyer with the Kentucky Public Protection Cabinet, reached a financial settlement with the state over her claim she was fired in 2015 after reporting two co-workers were running a “sex toy” business out of the office. Heyman began work as a supervising attorney with the department in April 2015. She was fired before she could successfully complete a six-month probation period and gain merit system job protection. Heyman said she discovered the extent of the online, adult product business when she found a box of such items under the desk of one of the employees. Heyman said she got little reaction after she reported it to her boss so she told the Executive Branch Ethics Commission. A week later, Heyman said she was fired with no explanation.

New York: New York Ethics Agency Hit with Harassment Lawsuit
Albany Times Union – Chris Bragg | Published: 6/20/2017

A former financial auditor at the New York Joint Commission on Public Ethics alleges she was fired after reporting sexual discrimination by one of her supervisors to the agency’s leadership. Catherine Webb outlined her accusation in a recent civil lawsuit she filed against the commission in federal court. Webb alleges she was repeatedly subjected to abusive verbal conduct that was “severe, pervasive and frequent.”

North Carolina: Is North Carolina the Future of American Politics?
New York Times – Jason Zengerle | Published: 6/20/2017

Ever since 2010, when Republicans seized control of the North Carolina General Assembly for the first time in a century, and especially since 2012, when they took the governor’s mansion, the state’s politics have been haywire. “It’s more polarized and more acrimonious than I’ve ever seen,” said Carter Wrenn, a veteran GOP political consultant. “And I’ve seen some pretty acrimonious politics – I worked for Jesse Helms.”

Wisconsin: Supreme Court to Hear Potentially Landmark Case on Partisan Gerrymandering
Washington Post – Robert Barnes | Published: 6/19/2017

The U.S. Supreme Court will consider whether judges can throw out legislative maps as being so partisan they violate the Constitution, taking up a case that could put a powerful new check on gerrymandering. The justices agreed to hear arguments on a Wisconsin map that a lower court said was designed to keep Republicans in control of the state Legislature even if they did not win a majority of the votes. The Supreme Court has never struck down a legislative map as being too partisan, or told challengers what standard they have to meet to win a lawsuit. The case, which the court will hear in the nine-month term that starts in October, could open the way for a new wave of election litigation.

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.