Orange County’s Office of Campaign Finance and Ethics Commission is now open. In 2016, voters approved a measure to create the Campaign Finance and Ethics Commission to provide oversight of the county’s campaign finance, lobbyist, and ethics ordinances.

Denah Hoard was named as the Executive Director of the commission and the county is currently in the process of seeking commissioners.

All lobbyist registrations and updates must now be conducted through the commission. A new lobbyist registration portal is scheduled to go live June 16, 2017. The commission will send emails to current lobbyists with the link to the new website and directions to activate their accounts.

Further information can be found at www.ocgov.com/gov/ocethics/.

Campaign Finance

Missouri: “Questions Mount on List of Charity Donors at Center of Greitens Ethics Fine” by Jason Hancock for Kansas City Star

New Mexico: “Secretary of State Planning New Campaign Funding Rules” by Dan Boyd for Albuquerque Journal

Elections

Virginia: “Northam Wins Democratic Gubernatorial Primary in Virginia” by Gregory Schneider for Washington Post

Ethics

“Special Counsel Starts Investigating Trump for Possible Obstruction of Justice, Officials Say” by Devlin Barrett, Adam Entous, Ellen Nakashima, and Sari Horwitz for Washington Post

“After the Shootings, Calls for Unity Amid Recriminations and Finger-Pointing” by Dan Balz for Washington Post

“Democrats in Congress to Sue Trump Over Foreign Business Dealings” by Sharon LaFraniere for New York Times

Maryland: “Baltimore County Council Bills Target Public Meetings, Ethics, Developer Contributions” by Pamela Wood for Baltimore Sun

Vermont: “Scott Calls New Ethics Law a Step to Restore Trust in Government” by Dan Schwartz for VTDigger.org

West Virginia: “Union’s Organizing Restricted Days After Calling for WV DHHR Chief’s Ouster” by Jake Zuckerman for Charleston Gazette

Lobbying

“Seizing on Opioid Crisis, a Drug Maker Lobbies Hard for Its Product” by Abby Goodnough and Kate Zernike for New York Times

Illinois: “Ethics Board Finds Two More Lobbying Violations Tied to Emanuel Emails” by Bill Ruthhart for Chicago Tribune

Kentucky: “State Senator Says Judges Ruling Against Kentucky’s Strict Legislative Ethics Code a Victory for Free Speech” by Don Weber for Spectrum News

Lobbying

“Lobbyists’ Foreign Agent Filing Raises Questions” by John Hudson for BuzzFeed.com

Campaign Finance

Arizona: “What Happens When One of Your Financial Backers Is Indicted?” by Ronald Hansen and Yvonne Wingett Sanchez for Arizona Republic

Florida: “It’s the End for the Miami Beach Mystery PAC – a Political Whodunit” by Nicholas Nehamas and Joey Flechas for Miami Herald

Michigan: “How Bingo Games Led to $500K Fine for Mich. Democratic Party” by Kathleen Gray (Detroit Free Press) for USA Today

New Mexico: “Audit Reveals Questionable Campaign Spending” by Dan Boyd for Albuquerque Journal

Ethics

“Role of Trump’s Personal Lawyer Blurs Public and Private Lines” by Rebecca Ruiz and Sharon LaFraniere for New York Times

“D.C. and Maryland Sue President Trump, Alleging Breach of Constitutional Oath” by Aaron Davis for Washington Post

Idaho: “Idaho Legislature to Re-Examine Ethics, Campaign Finance Laws” by Betsy Russell for Spokane Spokesman-Review

Oklahoma: “Oklahoma Ethics Commission Hikes Fee $50 on All Filers” by William Savage III for NonDoc.com

Redistricting

“Supreme Court Could Tackle Partisan Gerrymandering in Watershed Case” by Robert Barnes for Washington Post

The Los Angeles Ethics Commission announced the start of a comprehensive review of the lobbying ordinance. The review will focus on lobbyist registration requirements.

The commission is accepting feedback on the current registration requirements prior to June 26, 2017 to help guide the commission’s discussion of proposed changes at the August 15, 2017 meeting.

Comments can be e-mailed to ethics.policy@lacity.org.

The Oklahoma Ethics Commission voted last week to increase registration fees by $50 for all filers, including political action committees, lobbyists, and lobbyist principals.

The fee hike is expected to generate roughly $95,300, enough to cover its appropriation loss and address unmet software cost needs.

The new fee structure will take effect July 1, 2017.

Lobbying

New York: “Uber Reaches $98K Settlement Over Millions in Unreported Lobbying” by Chris Bragg for Albany Times Union

Ohio: “Ohio Lobbyists Fail to Report $55,000 in Legislative Gifts for First 4 Months of 2017” by Jane Morice for Cleveland Plain Dealer

Campaign Finance

Florida: “$200K War Chest Isn’t Mine, Beach Commissioner Says. But the Handwriting Is.” by Nicholas Nehamas and Joey Flechas for Miami Herald

Maine: “Attorneys for Maine Casino Referendum Backers Refuse to Accept Ethics Panel’s Subpoenas” by Michael Shepherd (Bangor Daily News) for Lewiston Sun Journal

Wisconsin: “Wisconsin Democrats Join Good-Government Groups in Push for Campaign Finance Reform” by Louis Weisberg for Wisconsin Gazette

Ethics

“GOP Lawmaker Talked Stocks with Colleagues” by Scott Wong for The Hill

Canada: “Trudeau Having Trouble Finding Replacements for Ethics, Lobbying Watchdogs” by Joan Bryden (Canadian Press) for National Post

California: “City Council Backs Boosting Experience for Future Ethics Commission Members” by Debbie Sklar (City News Service) for Times of San Diego

Pennsylvania: “Ex-Pa. Treasurer Pleads Guilty to Lying to the FBI” by Angela Couloumbis for Philadelphia Inquirer

On June 8, Quebec’s Commissioner of Lobbying François Casgrain, scheduled to retire this month, urged lawmakers to pass lobbying law reform.

According to the Montreal Gazette, Casgrain, who is leaving the position after eight years due to health reasons, is disappointed with the lack of progress in updating the lobbying laws. Casgrain has pushed for the passage of Bill 56, the Lobbying Transparency Act, which was first introduced in 2015. The legislation would expand the scope of the definition of lobbyists to include shareholders lobbying for an entity as well as directors and officers of a nonprofit. The bill would also expand the types of activity considered to be lobbying and impose stricter penalties and higher fines on violators of the law.

Casgrain will step down as Commissioner of Lobbying on June 30.

The Alabama Ethics Commission declined to vote on an advisory opinion recommending site consultants for companies considering moving to Alabama to register as lobbyists.

Economic development officials opposed the opinion because it could hurt business recruiting efforts.

There was no formal vote on the motion to approve the advisory opinion for lack of a second.

National:

How Donald Trump Shifted Kids-Cancer Charity Money into His Business
Forbes – Dan Alexander | Published: 6/6/2017

The Eric Trump Foundation apparently paid President Donald Trump’s businesses $1.2 million between 2007 and 2015 for expenses related to the foundation’s annual charity event at the Trump National Golf Club in Westchester County, New York, according to a report in Forbes. Eric Trump said the Trump Organization allowed his nonprofit foundation to use the golf course for free and covered most expenses for the golf tournament. But Forbes found IRS filings indicate otherwise. Forbes reported the Trump National Golf Club charged the Eric Trump Foundation tens, and later hundreds, of thousands of dollars each year for the one-day event, while donors were led to believe a much bigger portion of their money would go directly to the fundraiser’s chosen cause, children’s cancer research.

Federal:

James Comey Testifies: Former FBI director says he helped reveal details of conversations with Trump
Washington Post – Devlin Barrett and Ellen Nakashima | Published: 6/8/2017

Former FBI Director James Comey asserted that President Donald Trump fired him to interfere with his investigation of Russia’s role in the 2016 election and its ties to the Trump campaign. Comey accused the administration of spreading “lies, plain and simple” about him and the FBI in the aftermath of his abrupt firing. Comey also described intense discomfort about one-on-one conversations between him and the president, saying he decided he immediately needed to document the discussions in memos. Comey said he helped reveal details of his private conversations with Trump because he thought doing so would spur the appointment of a special counsel to investigate the administration.

Lobbyists, Industry Lawyers Were Granted Ethics Waivers to Work in Trump Administration
New York Times – Eric Lipton and Danielle Ivory | Published: 6/7/2017

New disclosures offer additional evidence that lobbyists and industry executives who can now shape policies benefitting their former clients and companies have been allowed to work in the Trump administration. The documents were released in response to a demand by the Office of Government Ethics (OGE) for details on how the Trump administration is enforcing the ethics policies. One unexpected outcome was proof the Obama administration, despite a much touted promise to make all of its ethics waivers public, stopped providing them to the OGE. The “revolving door” cases in the Trump administration generally involve individuals who had been retained by for-profit clients, and then took up matters that could benefit these former clients.

Top Intelligence Official Told Associates Trump Asked Him If He Could Intervene with Comey on FBI Russia Probe
Washington Post – Adam Entous | Published: 6/6/2017

The nation’s top intelligence official told associates in March that President Trump asked him if he could intervene with then-FBI Director James Comey to get the bureau to back off its focus on former national security adviser Michael Flynn in its Russia probe. The events involving Director of National Intelligence Daniel Coats show the president went further than just asking intelligence officials to deny publicly the existence of any evidence showing collusion during the 2016 election, as The Washington Post reported in May. The interaction with Coats indicates Trump aimed to enlist top officials to have Comey curtail the FBI’s probe.

From the States and Municipalities:

Alabama – Ethics Commission Declines to Make Site Consultants Register as Lobbyists
AL.com – Mike Cason | Published: 6/7/2017

The Alabama Ethics Commission rejected its staff’s opinion that site consultants for companies considering moving to the state are required under certain circumstances to register as lobbyists under the ethics law. Staff members said the companies who hire the consultants to scout locations and incentive opportunities from local governments would have to register as principals. The commission declined to vote on the recommendation after economic development officials said would hurt their recruiting efforts because companies place a high value on confidentiality when they are considering a new location.

Arizona – Corruption Case Snares Lobbyist at the Center of Arizona Power Politics
Arizona Republic – Yvonne Wingett Sanchez and Dan Nowicki | Published: 5/26/2017

Among the individuals named in a federal indictment was one who has touched almost every corner of Arizona power politics: lobbyist Jim Norton. A familiar figure for years at the Capitol, Norton was among Gov. Doug Ducey’s earliest political backers and a friend since college. His firm helped guide U.S. Rep. Andy Biggs to victory last November. He is also the business community’s leading voice at the statehouse. Prosecutors say Norton was “a conduit” for bribes that water-company owner George Johnson is accused of paying to former Arizona Corporation Commission Chairperson Gary Pierce. Authorities allege the money helped secure commission approval of higher rates for Johnson Utilities.

District of Columbia – D.C. Mayor Bowser Fined $13,000 for Illegal Campaign Contributions
Washington Post – Aaron Davis | Published: 6/7/2017

District of Columbia Mayor Muriel Bowser’s campaign committee was fined $13,000 for taking campaign donations over legal limits during her successful run for office three years ago. Bowser’s campaign kept over $11,000 in illegal contributions from 13 developers, contractors, and Sanford Capital, a landlord her administration has since been slow to fine for more than 1,000 housing-code violations. Some of the developers who contributed more than the legal limit to Bowser in 2014 were the same ones who went on to donate to a PAC that Bowser’s allies set up but later abandoned during her first year in office amid criticism from city council members that it was creating a perception of “pay-to-play” politics.

Florida – Someone Raised $200K from Miami Beach Bigwigs, But No One Will Say Why
Miami Herald – Nicholas Nehamas and Joey Flechas | Published: 6/5/2017

Miami Beach Commissioner Michael Grieco says he does not know a thing about a mysterious South Florida group that raised $200,000 from city bigwigs last year. But interviews with two of those donors suggest the PAC is raising money in his name, and that Grieco, who is running for mayor, solicited at least one contribution. Miami Beach lobbyists, vendors, and real-estate developers all appear on the list of donors to People for Better Leaders, exactly the type of power players whose contributions led to a public outcry during the last election cycle and, ultimately, to stricter campaign finance laws.

Kentucky – Judge Tosses Ethics Rules for Kentucky Lobbyists, Lawmakers
U.S. News & World Report – Adam Beam (Associated Press) | Published: 6/7/2017

A federal judge ruled Kentucky lawmakers can accept gifts from lobbyists and that lobbyists can make campaign contributions to candidates for the Legislature. The state law banning lobbyists giving gifts to lawmakers includes “anything of value,” which U.S. District Court Judge William Bertelsman said was too vague. State regulators said the laws were meant to prevent bribery at the Capitol. Most of the rules were enacted after “Operation BOPTROT,” a 1992 FBI probe that exposed 15 current or former legislators who sold their votes. Officials with the Legislative Ethics Commission and the Registry of Election Finance said they were reviewing the order and were considering an appeal.

Missouri – What You Need to Know about Missouri’s Evolving Campaign Finance Laws
Missouri Times – Travis Zimpfer | Published: 6/6/2017

On June 20, Missouri’s campaign finance laws will once again experience changes for the second time in roughly six months. The Missouri Ethics Commission updated their own primer on the constitutional amendment and how a recent decision by a federal judge that found many provisions of the law unconstitutional affected it. Commission Director James Klahr issued an advisory opinion that political party committees in the House and Senate are not bound to the $25,000 aggregate limit in accordance with the ruling.

North Carolina – US Supreme Court Affirms NC Legislative Districts as Racial Gerrymanders
Raleigh News and Observer – Anne Blythe | Published: 6/5/2017

The U.S. Supreme Court upheld a lower court ruling that struck down 28 state House and Senate districts in North Carolina because they violated the rights of black voters. But the justices rejected the court’s order to redraw the districts and hold a special election. The action by the justices sends the matter back to the lower court, which could order new districts in time for the regular cycle of elections in 2018.

Pennsylvania – A Philly Teacher’s Stunts Draw Interest from The Board of Ethics
Philadelphia Inquirer – Chris Brennan | Published: 6/5/2017

It looks as if George Bezanis, a Central High School social studies teacher who has used a billboard and a banner plane to protest the lack of a new union contract for the Philadelphia Federation of Teachers, will be butting heads with the city Board of Ethics. An attorney for the ethics board told Beznis the billboard and banner plane were “reportable lobbying under the city’s lobbying law.” Bezanis needed to register as a lobbyist, the attorney said in the message, or face a financial penalty.

South Carolina – Firms Named in SC Corruption Probe Have Hundreds of Millions at Stake
The State – Jamie Self and Avery Wilks | Published: 6/4/2017

South Carolina’s largest special interests know the time they spend working the state’s lawmakers at the Capitol is well spent. But was the help they got from one of the state’s most influential political families legal? Indicted Rep. Rick Quinn, whose father operates a political consulting empire, stands accused of voting and lobbying in the Legislature on behalf of special interests that, prosecutors allege, paid him through his direct-mail business and his father’s firm. He also is charged with failing to disclose accepting nearly $4.6 million he received from special interests that lobby the Legislature.  The companies that Quinn is charged with illegally helping are big fish in the pool of special interests vying for influence in Columbia.

Tennessee – Record $465,000 Fine Issued Against Jeremy Durham for ‘Egregious’ Campaign Finance Violations
The Tennessean – Dave Boucher and Joel Ebert | Published: 6/7/2017

The Tennessee Registry of Election Finance levied the largest fine it has ever imposed against former state Rep. Jeremy Durham for hundreds of campaign finance law violations. Among the findings in an audit were allegations Durham used campaign funds to improperly buy sunglasses, suits, and spa products, and inappropriately loaned thousands of dollars to his wife, a prominent Republican fundraiser and professional gambler. Registry members occasionally haggled over the individual amounts for each violation, trying to determine how egregious Durham’s actions were while also expressing a desire to use the penalties to prevent future wrongdoing. In total, the registry fined Durham $465,500 for more than 300 violations.

Wisconsin – Critics Deride Secrecy, Limits on Investigations by State Ethics Commission as It Nears 1-Year Mark
Wisconsin State Journal – Mark Sommerhauser | Published: 6/4/2017

Critics say it is difficult to assess the work of Wisconsin’s new ethics commission because much of what it does is kept secret. Current and former commissioners and other observers say they have seen some heartening signs from the six-member panel, which acts as the state’s watchdog of political campaigns and candidates, public officials, and those who seek to influence them. But critics say the commission is handcuffed by legal limits on what it can disclose about its efforts to enforce campaign finance, ethics, and lobbying laws. It also is much more limited than its predecessor, the Government Accountability Board, in its ability to investigate alleged violations of those laws.

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.

In a 35-page order, a federal judge dismantled some of the toughest ethics laws in the country. U.S. District Judge William Bertelsman struck down Kentucky’s prohibitions on lawmakers accepting gifts from lobbyists and lobbyists making contributions to candidates for the state legislature.

Judge Bertelsman ruled the gift prohibition’s “anything of value” standard is too vague for an ordinary person to know what conduct is prohibited. Furthermore, the judge stated lobbying is a vital part of the political process and restricting what lobbyists can do in their interactions with a legislator is a violation of their freedom of association.

Republican state Sen. John Schickel, who filed the lawsuit, called the ruling a victory for freedom of speech.

The judge also took aim at caucus campaign committees, ruling the statutory definition restricting the committees to Republican or Democratic is unconstitutional. Former Libertarian House candidate David Watson challenged the law, saying third party candidates cannot compete with the amount of money generated by caucus campaign committees.

The Kentucky Legislative Ethics Commission and the Kentucky Registry of Election Finance are still reviewing the order and are considering an appeal.

Lobbying

Kentucky: “Judge Tosses Ethics Rules for Kentucky Lobbyists, Lawmakers” by Adam Beam (Associated Press) for U.S. News & World Report

Campaign Finance

Maryland: “Montgomery County Candidates Line Up for Taxpayer-Funded Contributions” by Bill Turque for Washington Post

Missouri: “What You Need to Know about Missouri’s Evolving Campaign Finance Laws” by Travis Zimpfer for Missouri Times

Tennessee: “Record $465,000 Fine Issued Against Jeremy Durham for ‘Egregious’ Campaign Finance Violations” by Dave Boucher and Joel Ebert for The Tennessean

Ethics

“How Donald Trump Shifted Kids-Cancer Charity Money into His Business” by Dan Alexander for Forbes

“Lobbyists, Industry Lawyers Were Granted Ethics Waivers to Work in Trump Administration” by Eric Lipton and Danielle Ivory for New York Times

“Top Intelligence Official Told Associates Trump Asked Him If He Could Intervene with Comey on FBI Russia Probe” by Adam Entous for Washington Post

“Inside the Heaving, Jostling Capitol Media Mob: ‘We are one tripped senator away’ from disaster.” by Elise Viebeck and Ben Terris for Washington Post

Kentucky: “In Appeal, Gov. Matt Bevin Argues He Paid Fair Price for Anchorage Mansion” by Tom Loftus for Louisville Courier-Journal

New Mexico: “‘Enforcement Gap’ Persists in NM Ethics Laws” by Laura Paskus for NM Political Report

South Carolina: “Senate Approves New South Carolina Ethics Commission Members” by Maya Prabhu for Charleston Post and Courier

Lobbying

Texas: “City Officials Question Oversight of Visit Austin” by Shonda Novak for Austin American-Statesman

Utah: “Utah Bars Fighting the State’s Strict New DUI Law with Fundraising and Petition Drive” by Kathy Stephenson for Salt Lake Tribune

Campaign Finance

“Amid Trump’s Unpopularity, Democrats Face Criticism for Not Investing More in Special Elections” by Mike DeBonis and David Weigel for Washington Post

Florida: “Someone Raised $200K from Miami Beach Bigwigs, But No One Will Say Why” by Nicholas Nehamas and Joey Flechas for Miami Herald

South Carolina: “South Carolina Lt. Gov. Kevin Bryant’s New Campaign Account Under State Ethics Review” by Andy Shain for The State

Ethics

“Top Intelligence Official Told Associates Trump Asked Him If He Could Intervene with Comey on FBI Russia Probe” by Adam Entous for Washington Post

“Comey Told Sessions: Don’t leave me alone with Trump” by Michael Schmidt and Matt Apuzzo for New York Times

“Trump Organization to Go Budget Friendly With ‘American Idea’ Hotel Chain” by Steve Eder and Ben Protess for New York Times

“Intelligence Contractor Is Charged in First Leak Case Under Trump” by Charlie Savage for New York Times

Florida: “City Councilman Tried to Sell His Vote to Fill Council Seat for $15,000, Witnesses Testify” by Brett Kelman, Jesse Marx, ands Rosalie Murphy (Palm Beach Desert Sun) for USA Today

Redistricting

“US Supreme Court Affirms NC Legislative Districts as Racial Gerrymanders” by Anne Blythe for Raleigh News and Observer

Q. We file our federal LD-2 quarterly lobbying reports under the IRC definitions.  Does the IRC 5 percent de minimus rule apply to capturing reportable expenditures on our quarterly LD-2 disclosure?

A. In short, yes, but with a caveat.  If your organization has opted to compile lobbying expenditures using Method B or Method C, the 5 percent de minimus rule applies.  As a frame of reference, the IRC allows taxpayers an exception for including the time of individuals who spend less than 5 percent of their time engaged in lobbying activities as defined by the IRS…

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Campaign Finance

District of Columbia: “Council Member Todd Gets Minor Fine for Many Campaign Finance Infractions” by Aaron Davis for Washington Post

Maine: “Ethics Commission Staff Calls for Probe of Casino Referendum Campaign” by Kevin Miller for Portland Press Herald

New Jersey: “2 Birdsall Execs Get Jail Time in $1M Pay-to-Play Scheme” by S.P. Sullivan (NJ Advance Media) for Newark Star-Ledger

Ethics

“How G.O.P. Leaders Came to View Climate Change as Fake Science” by Coral Davenport and Eric Lipton for New York Times

Michigan: “Ex-Detroit Principal Uses Robin Hood Defense at Corruption Sentencing” by Gus Burns for MLive.com

Tennessee: “Tennessee Watchdogs Owed More Than $1 Million in Unpaid Fines” by Joel Ebert and Dave Boucher for The Tennessean

Wisconsin: “Critics Deride Secrecy, Limits on Investigations by State Ethics Commission as It Nears 1-Year Mark” by Mark Sommerhauser for Wisconsin State Journal

Lobbying

Pennsylvania: “A Philly Teacher’s Stunts Draw Interest from The Board of Ethics” by Chris Brennan for Philadelphia Inquirer

South Carolina: “Firms Named in SC Corruption Probe Have Hundreds of Millions at Stake” by Jamie Self and Avery Wilks for The State

West Virginia: “DHHR Head Owns Part of Health Care Lobbying Firm, Documents Show” by Jake Zucherman for Charleston Gazette