On December 16, the Commissioner of Political Practices’ proposed rule amendment increasing the threshold amount of payment triggering lobbyist and employer registration to $2,550 for 2017 and 2018 was adopted.

The payment threshold is adjusted by an inflation factor determined by the commissioner. The previous threshold amount was $2,500 for the calendar years 2015 and 2016.

See what’s happening in government relations this week in our News You Can Use Video Digest. Enjoy!

Minutes before midnight on December 12, 2016, Citizens Union (CU) filed a complaint against the State of New York alleging a violation of the First Amendment of the United States Constitution. CU seeks declaratory and injunctive relief from disclosure laws passed in June.

The new laws lowered the annual lobbying spending threshold from $50,000 to $15,000 for 501(c)4 organizations. Additionally, the new laws require 501(c)4 organizations to disclose donors who give more than $2,500. The complaint was filed in the United States District Court for the Southern District of New York.

Elections

“Stein Spent Nearly $1 Million of Recount Funds on Consultants, Staff, Admin Expenses” by Joe Schoffstall for The Washington Free Beacon

New Mexico: “Political Action Committees Spent Big in Closing Days of Election” by Morgan Lee (Associated Press) for Albuquerque Journal

Ethics

“Former Democratic Congressman Chaka Fattah Sentenced to Decade in Prison” by Deena Zaru for CNN

Connecticut: “Bilda, Hinchey to Face Ethics Hearings Over Derbygate” by Ryan Blessing for The Bulletin

New Hampshire: “Portsmouth Resident Tries Again With Ethics Complaint” by Jeff McMenemy for Seacoast Online

South Dakota: “Attorney General’s Office Pushes to Save Parts of Ethics Law” by The Associated Press for The Washington Times

Campaign Finance

Missouri: “KCMO Police Commissioner May Have Broken Missouri Law” by Andy Alcock for KHSB

New York: “Hearing Delayed in Staver-Sauer Case” by Andrew Setterholm for Post Bulletin

Wisconsin: “Report: PAC Spending on Wisconsin Legislative Races Soars in Wake of Campaign Finance Change” by Katelyn Ferral for The Capital Times

Legislative Issues

Missouri: “Missouri Democrats Push Anti-Corruption Agenda as Legislative Session Approaches” by Kurt Erickson for St. Louis Post-Dispatch

Lobbying

“Lobbying Muscle May Help Tech Titans Trump Trump” by Allan Holmes and Jared Bennett for Center for Public Integrity

Campaign Finance

“Activists Brace for Fight Over Campaign Finance Law” by Alex Roarty for Roll Call

Elections

“Completed Wisconsin Recount Widens Donald Trump’s Lead by 131 Votes” by Matthew DeFour for Wisconsin State Journal

Ethics

“Aaron Schock Pleads Not Guilty To Slew of Federal Charges” by Aryn Braun for Roll Call

Wisconsin: “State Ethics Commissioner Resigns, Citing Dysfunction in New Watchdog Agency” by Mark Sommerhauser and Molly Beck for Wisconsin State Journal

Legislative Issues

“Budget Shortfalls Expected in the Most States Since Recession” by Liz Farmer for Governing

Lobbying

“K Street Eyes Outgoing Lawmakers for Jobs” by Kate Ackley for Roll Call

“Exxon-Mobil: No Stranger to Lobbying the ‘Swamp’” by Lesley Clark (McClatchy) for The News & Observer

“Trump Transition Trade Staffer Defended NAFTA, was Chamber of Commerce Lobbyist” by Andrew Kaczynski and Chris Massie for CNN

Missouri: “Opinion: The Christmas Spirit of Lobbyists” by Phill Brooks for The Springfield Business Journal

Procurement

New York: “DiNapoli Proposes Procurement Reforms” by Matthew Hamilton for Times Union

Campaign Finance

Florida: “Dozens of Florida Political Committees Being Fueled by Millions in ‘Dark Money’” by Tia Mitchell for The Florida Times-Union

Massachusetts: “Campaign Finance Law Shields Violators” by Stephanie Ebbert for The Boston Globe

Elections

“Senate and House Leaders Call for Inquiry of Russian Hacking in Election” by Jennifer Steinhauer for The New York Times

Ethics

“Trump Invites Trouble if He Keeps Businesses: Ethics Experts” BY Bernard Condon and Julie Bykowicz (Associated Press) for McClatchy DC

“Why All Billionaire Politicians Are Not Created Equal” by Ruairi Arriet-Kenna for Politico

Lobbying

“Insurers Step Up Lobbying With an Eye to Health-Law Changes” by Anna Wilde Mathews and Louise Radnofsky for The Wall Street Journal

“Big Law Lobbying Efforts Fail to Kill 9/11 Litigation Against Saudi Arabia” by Michael D. Goldhaber for The American Lawyer

Missouri: “Lobbyist Gifts to Missouri Legislators Have Dropped Significantly” by Walker Moskop for St. Louis Dispatch

Texas: “Edinburg Hires DC Lobbying Firm” by Naxiely Lopez for The Monitor

Campaign Finance

Arizona: “What Ever Happened to The Investigations into Tom Horne?” by Yvonne Wingett Sanchez for Arizona Republic

California: “Contra Costa: Turmoil in DA’s office after agency head admits to violating California law” by Nate Gartrell by East Bay Times

Maine: “Ethics Commission Favors Shedding Light on ‘Dark Money’ in Maine Campaigns” by Kevin Miller for Portland Press Herald

Oregon: “Portland City Council Set to Revive Publicly Funded Campaigns – in 2019” by Jessica Floum for The Oregonian

Ethics

“Trump Could Keep D.C. Hotel Despite Conflict of Interest” by Isaac Arnsdorf for Politico

“Suspected of Corruption at Home, Powerful Foreigners Find Refuge in U.S.” by Kyra Gurney, Anjali Tsui, David Iaconangelo, and Selena Cheng for Miami Herald

Kentucky: “Tim Longmeyer Pleads Guilty to State Felony” by Tom Loftus for Louisville Courier-Journal

Massachusetts: “Antiboycott Groups Pay for State Officials’ Israel Trips” by Frank Phillips for Boston Globe

South Dakota: “South Dakota Judge Puts Government Ethics Overhaul on Hold” by James Nord (Associated Press) for Sioux Falls Argus Leader

Lobbying

“Trump Victory Sets Off a Tsunami of Lobbying Activity by Companies” by Steven Mufson and Ylan Mui for The Washington Post

Florida: “PBC School Board Imposes New Rules for Lobbyists” by Andrew Marra for Palm Beach Post

Elections

“Obama Orders Intelligence Report on Russian Election Hacking” by David Sanger and Scott Shane for The New York Times

See what’s happening in government relations this week in our News You Can Use Video Digest. Enjoy!

Individuals who lobby the Palm Beach County School Board or top school district administrators are now required to register and disclose their activity. The School Board approved the new policy this week after more than a year of development.

The policy targets professional lobbyists hired by businesses while exempting unions, parent groups, sales representatives, and those lobbying on behalf of their own companies. Lobbyists are also prohibited from providing gifts in excess of $50.

Registration is required prior to engaging in lobbying and expires each year on June 30. A statement of expenditures must be filed on or before August 1 and lobbyists must sign an appearance log prior to each visit with the School Board.

A South Dakota judge has issued a preliminary injunction on Initiated Measure 22. Initiated Measure 22 was approved by the majority of South Dakota voters last month as an act to revise campaign finance and lobbying laws.

The injunction will give the courts and the Legislature time to consider the measure, which has been widely criticized as being poorly drafted and possibly unconstitutional. Supporters of Initiated Measure 22 are expected to ask the judge to re-instate portions of the law not challenged by the plaintiffs, such as the provisions dealing with lower caps on campaign contributions.

National:

Gun Control Advocates Find a Deep-Pocketed Ally in Big Law
New York Times – Jessica Silver-Greenberg and Ben Protess | Published: 12/7/2016

On the defensive, gun control advocates are now quietly developing a plan to chip away at the gun lobby’s growing clout: team up with corporate law firms. Together, the firms are committing tens of millions of dollars in free legal services from top corporate lawyers who typically bill clients $1,000 an hour or more. Although law firms often donate time to individual causes, and some firms have worked on gun control on a piecemeal basis, the number and the prominence of the firms involved in the new coalition are unheard-of for modern-day big law. Rather than fighting the political headwinds, the coalition is focusing on courts and state regulatory agencies, among the few places where they might still gain some traction.

Ontario Overhauls Campaign Finance Rules with Sweeping Reforms
Toronto Globe and Mail – Adrian Morrow | Published: 12/1/2016

Legislation that alters the political fundraising landscape in Ontario was approved recently. The new law takes effect on January 1, 2017. It will prohibit all provincial politicians, candidates, and senior political staff from attending fundraising events, ban corporations and unions from giving, and cap donations from individuals at $3,600 per political party annually, among other provisions. The reforms were introduced following revelations that corporate leaders and lobbyists seeking government contracts or favorable policy decisions had spent up to $10,000 to buy exclusive face-time with Premier Kathleen Wynne and members of her cabinet over cocktails and dinner.

Federal:

Business Since Birth: Trump’s children and the tangle that awaits
New York Times – Matt Flegenheimer, Rachel Abrams, Barry Meier, and Hiroko Tabuchi | Published: 12/4/2016

Since his election, Donald Trump has chafed at the suggestion that keeping his business in the family could create problems, despite several episodes during his transition that seemed to mix business and diplomacy. While he has insisted he faces no legal requirement to turn over the company, the Trump Organization said it is preparing an “immediate transfer of management” to Trump’s three eldest children, along with a team of executives. An examination of the professional histories of the three children shows how deeply the family, business, and politics are interwoven, raising doubts about how a meaningful wall can ever be erected between the president-elect and his heirs.

Justices Wrestle with Role of Race in Redistricting
New York Times – Adam Liptak | Published: 12/5/2016

Race and politics divided the U.S. Supreme Court along ideological lines in two cases that could affect the way state Legislatures draw election districts in the future. The court’s more liberal justices criticized maps drawn after the 2010 Census by Republican Legislatures in North Carolina and Virginia for focusing predominantly on the percentage of African Americans in various districts. The more conservative justices mostly defended the maps, either because race did not dictate the contours of the districts or because the motivator was political advantage, something the high court has not ruled against. Several justices expressed frustration that unless they define clearly what is allowed and what is not, they could be left with what Justice Stephen Breyer called “a set of standards that district courts can’t apply, which will try to separate sheep from goats.”

Trump Adviser Has Pushed Clinton Conspiracy Theories
Politico – Bryan Bender and Andrew Hanna | Published: 12/5/2016

Before the election, Lt. Gen. Michael Flynn, who is Donald Trump’s choice for national security adviser, tweeted a fake news story that claimed police and prosecutors had found evidence linking Hillary Clinton and much of her senior campaign staff to money laundering, perjury, and other felonies. Flynn’s tweet is attracting renewed attention after a man fired a rifle inside a Washington, D.C. restaurant that was the subject of false stories tying it and the Clinton campaign to a child sex trafficking ring. Some say Flynn’s fondness for spreading fake news casts doubt on his fitness to serve as national security adviser, suggesting he either cannot spot a blatant falsehood or is just ideologically bent to believe the worst of his perceived enemies.

Trump Sold All Shares in Companies in June, Spokesman Says
Washington Post – Drew Harwell and Rodsalind Helderman | Published: 12/6/2016

Donald Trump sold all his stock back in June, a transition team spokesperson said, showing the president-elect has begun to address concerns about complicated entanglements between his business and new government life. Questions about Trump’s stock holdings came back into view after he criticized the costs of Boeing to build a new Air Force One. Trump’s portfolio included shares in a number of banks, oil giants, and other companies with business pending before the U.S. government and whose value could rise due to Trump’s decisions in office. Those stock holdings, ethics advisers said, offered a potentially troublesome facet of Trump’s private finances that could entangle his public decision-making.

From the States and Municipalities:

Alabama
Ethics Commission Pulls Opinion Over Nonprofit Concerns
Montgomery Advertiser – Brian Lyman | Published: 12/7/2016

The Alabama Ethics Commission withdrew an opinion that said the state ethics law’s definition of a principal – an individual or organization that hires a lobbyist – included not only a firm that hired the lobbyist but anyone in the organization with authority, including executives, officers, and members of boards of directors. Lobbyists and principals cannot provide legislators with things of value. The jury that convicted former House Speaker Mike Hubbard on corruption charges accepted a broad definition of principal favored by prosecutors. That stirred unease in the business community and among nonprofits. Representatives of nonprofits who spoke at a recent commission hearing said many of their chief donors had cut off funds over concerns about the principal definition.

California
EBay Faces Fines from State Ethics Watchdog after Failing to Disclose Sacramento Lobbying on Time
Los Angeles Times – Patrick McGreevy | Published: 12/6/2016

The California Fair Political Practices Commission proposed a $6,500 fine for eBay after the company missed deadlines for filing lobbying spending reports and failed to properly disclose campaign contributions. The commission will vote on December 15 whether to approve the deal. EBay representatives told investigators the failure to file the reports on time was “inadvertent” and caused by a transfer of responsibility for filing during a “corporate transition.” The firm also was late in filing statements required of major donors that disclose their contributions.

Colorado
Amendment 71 Made It Harder to Get Initiatives on the Ballot – What Happens Now?
Denver Post – Brian Eason | Published: 12/5/2016

Anyone able to raise enough money and signatures can propose an amendment to the Colorado Constitution through a ballot initiative, sidestepping the legislative process. But Amendment 71, approved by voters November 8, made that harder to do, so much harder, critics say, that amending the constitution is no longer an option for all but the most well-funded organizations. Statutory ballot measures that fall short of amending the constitution are still on the table, but there are downsides to that approach too.

Florida
Corcoran Offers Lobbyist ‘Training’ to Adjust to New Legislative Limitations
Sunshine State News – Allison Nielson | Published: 12/1/2016

The Florida House passed a sweeping set of rule changes during its organization session, with several of those changes directly affecting lobbyists. To help lobbyists transition to the new guidelines, the House will be holding training sessions on December 13 and December 14 in Tallahassee. The lobbyist training will cover disclosure requirements for lobbyists, as well as other rules.

Massachusetts
Businesses Seek to Overturn Massachusetts Ban on Political Contributions
MassLive.com – Shira Schoenberg | Published: 12/7/2016

Under Massachusetts campaign finance law, businesses are not allowed to contribute to candidates. Individuals can donate up to $1,000 per year and unions can give up to $15,000. Republican lawmakers have tried, unsuccessfully, to bring the amount unions can donate down to $1,000. The law has typically benefited Democrats, who get the bulk of union campaign contributions. Attorneys for two businesses recently tried to convince a Superior Court judge to allow businesses to make the same political donations as labor unions.

Missouri
Lawsuit Seeks to Stop Campaign Contribution Limits Approved by Missouri Voters Last Month
St. Louis Post-Dispatch – Kurt Erickson | Published: 12/7/2016

A lawsuit filed in federal court challenges the voter-approved referendum that reinstated campaign contribution limits in Missouri. The same group that unsuccessfully sought to block the ballot measure before the November election argues the change in the state constitution unfairly limits some businesses and associations from giving money to campaigns. In particular, the change would stop the Association of Missouri Electrical Cooperatives from donating to campaigns and PACs, violating the free speech rights of its members, the lawsuit notes. The legal action comes one day before the new limits are set to take effect.

New York
Anthony Weiner Fined $65,000 for Campaign Finance Violations
New York Times – J. David Goodman | Published: 12/1/2016

The New York City Campaign Finance Board ordered Anthony Weiner’s campaign to repay more than $195,000 in public matching funds he received as part of his failed 2013 mayoral bid.  The board also ordered the campaign to pay a $64,956 fine for spending irregularities, including personal expenses not allowed under the current law.  The campaign committed multiple infractions, the board found, including accepting 21 contributions that exceeded the legal limit, accepting contributions in excess of the limit for donors who have business with the city, and failing to demonstrate how some expenses were made in furtherance of the campaign. New revelations of sexually explicit text messages and photographs, sent to women after he had left Congress, came to light and derailed Weiner’s bid for mayor.

North Carolina
North Carolina Gov. Pat McCrory (R) Concedes Closely Contested Governor’s Race
Washington Post – Amber Phillips | Published: 12/5/2016

Ending an acrimonious stalemate that dragged on for nearly a month, North Carolina Gov. Pat McCrory conceded in his bid for re-election, clearing the way for the ascension of his challenger, Roy Cooper, and giving the national Democratic Party a rare cause for celebration. Cooper, the current state attorney general, declared victory on election night, but McCrory’s allies lodged election challenges in dozens of counties. Most of the challenges proved to be of little consequence, however. As partial results of a recount of more than 90,000 votes that Republicans had demanded in Durham County showed no significant change in the results, McCrory had little choice but to admit defeat.

Washington
EPA, Tribe: State commission not venue for complaint
The Olympian – Don Jenkins (Capital Press) | Published: 12/7/2016

The Environmental Protection Agency (EPA) and a Puget Sound tribe say the Washington Public Disclosure Commission (PDC) should step away from an investigation into whether the What’s Upstream advocacy campaign violated state law. The EPA said a federal audit will answer whether What’s Upstream organizers misspent public funds. The tribe said the PDC has no jurisdiction over how a tribe spends money. Save Family Farming alleges What’s Upstream lead organizer Larry Wasserman, the tribe’s environmental policy director, failed to register his group as a political committee or grassroots lobbying organization. The complaint also named EPA Northwest Administrator Dennis McLerran and Seattle lobbying firm Strategies 360.

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 Alabama Ethics Commission (AEC) has suspended the implementation of an advisory opinion released in September. The controversial opinion expanded the definition of lobbyist principal to include anyone in the organization with authority such as executives, officers, and members of boards of directors.

Because lobbyists and principals cannot give a thing of value to legislators, the expanded definition of principal was a concern to nonprofits. At an AEC meeting on December 7, 2016, representatives of nonprofits stated many of their chief donors had ceased contributing over concerns about the expanded definition of principal. In response to those concerns, the AEC members voted to suspend the advisory opinion.

Lobbying

“Gun Control Advocates Find a Deep-Pocketed Ally in Big Law” by Jessica Silver-Greenberg and Ben Protess for The New York Times

“Bob Dole Worked Behind the Scenes on Trump-Taiwan Call” by Julie Hirschfeld Davis and Eric Lipton for The New York Times

Alabama: “Ethics Commission Pulls Opinion Over Nonprofit Concerns” by Brian Lyman for Montgomery Advertiser

Florida: “Hillsborough County to Copy Richard Corcoran’s Proposal to Ban Texting by Lobbyists?” by Mitch Perry for Florida Politics

Campaign Finance

Missouri: “Lawsuit Seeks to Stop Campaign Contribution Limits Approved by Missouri Voters Last Month” by Kurt Erickson for St. Louis Post-Dispatch

Ethics

“Trump Adviser’s Son Removed from Transition after Spreading Conspiracy Theory” by Greg Miller for The Washington Post

“Trump’s Top Conflict Critics Take Over Watchdog Group” by Darren Samuelsohn for Politico

California: “Ex-LAPD Sergeant Broke City Rules by Leaking Recording of ‘Django Unchained’ Actress, Ethics Group Says” by Kate Mather for Los Angeles Times

Missouri: “Nine Face Corruption Charges, Including ESL Councilwoman, Board of Review Member” by George Pawlacyzk and Beth Hundsdorfer for Belleville News Democrat

Legislative Issues

South Carolina: “South Carolina Lawmakers Change Rules to Limit Obstructions” by Robert Kittle and John Hart for WJBF

County commissioners approved a motion to research and draft a proposal to ban commissioners from receiving text messages from lobbyists during board meetings.

This comes on the heels of the Florida House implementing, in its rules for the upcoming session, a ban on electronic communications with lobbyists while in committee or in the House Chamber.

Commissioner Sandy Murman introduced the idea; however, no penalties for a violation were included in the proposal. Though the measure for further exploration passed 5-1, support among commissioners for an actual ban seemed less decisive during the meeting.