The San Francisco Ethics Commission voted unanimously to submit an initiative ordinance to the November 2016 ballot.

The measure would restrict lobbyist gifts, campaign contributions, and bundled contributions.

If passed by voters, the ordinance will become effective January 1, 2018.

At any given time, more than 1,000 legislative bills, which can affect how you do business as a government affairs professional, are being discussed in federal, state, and local jurisdictions. These bills are summarized in State and Federal Communications’ digital encyclopedias for lobbying laws, political contributions, and procurement lobbying and can be found in the client portion of our website.

Summaries of major bills are also included in monthly email updates sent to all clients. The chart below shows the number of bills we are tracking in regard to lobbying laws, political contributions, and procurement lobbying.

Q. Our company is active and registered as a lobbyist employer in several states. What are best practices for record-keeping? What will we need to access and keep in the event of a state audit?

A. Each state takes a different approach to auditing, requiring registered companies and lobbyists to keep substantiating records for varying periods of time.  As a conservative rule of thumb, it’s generally advisable to keep substantiating records for seven years.  However, for each state where your company has an active registration, you should determine if there is a set document retention policy.  While some states have no set period of time for lobbyists/employers to retain records, a majority of states require retention for a set period of time, usually within a three to five year range.

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You can directly submit questions for this feature, and we will select those most appropriate and answer them here. Send your questions to: experts@stateandfed.com.

(We are always available to answer questions from clients that are specific to your needs, and we encourage you to continue to call or e-mail us with questions about your particular company or organization. As always, we will confidentially and directly provide answers or information you need.) Our replies to your questions are not legal advice. Instead, these replies represent our analysis of laws, rules, and regulations.

Lobbying

Massachusetts: “Mass. Insiders Turn to Lobbying Careers” by Mark Arsenault and Andrew Ryan for Boston Globe

Campaign Finance

“D.C. Circuit to Hear Challenge to Contribution Limits” by Kenneth Doyle for Bloomberg BNA

“Koch Network Seeks to Defuse Donor Frustration over Trump Rebuff” by Matea Gold for Washington Post

Ethics

“Court Rejects Sen. Robert Menendez’s Attempt to Get Corruption Case Thrown Out” by John Bresnahan and Josh Gerstein for Politico

District of Columbia: “After a Quiet Couple of Years, D.C. Council Roiled by Apparent Conflict of Interest” by Aaron Davis and Fenit Nirappil for Washington Post

New Jersey: “Ex-Port Authority Chief’s Fall from Grace a Cautionary Tale About Privacy” by Paul Berger for Bergen Record

Ohio: “Ethics Commission Tells Columbus Leaders to Pay Up for Buckeye Junket” by Lucas Sullivan for Columbus Dispatch

Elections

“In Clash Between Trump and the Khans, New Signs of a Cultural and Political Divide” by Marc Fisher for Washington Post

North Carolina: “4th U.S. Circuit Judges Overturn North Carolina’s Voter ID Law” by Anne Blythe (Raleigh News & Observer) for Charlotte Observer

Wisconsin: “Judge Strikes Down Wisconsin Voter ID, Early Voting Laws” by Patrick Marley and Jason Stein for Milwaukee Journal Sentinel

A new system is expected to replace Alberta’s outdated lobbyist registry as early as November. The current system moves slowly, is incompatible with certain internet browsers, and does not produce accurate search results.

Lobbyists will need to create new accounts and re-register when the new system opens, as data from the old registry will not be imported. Migrating existing lobbyist data over to the new system would have been more expensive.

Kent Ziegler, the Office of the Ethics Commissioner’s chief administrative officer, believes it is better to start from scratch to ensure accuracy.

Campaign Finance

“After Lying Low, Deep-Pocketed Clinton Donors Return to the Fore” by Nicholas Confessore and Amy Chozick for New York Times

California: “California Treasurer Cracks Down on Pay to Play” by Kyle Glazier for The Bond Buyer

California: “Feds Say Azano Wanted to ‘Buy a Mayor’” by Greg Moran for San Diego Union-Tribune

Washington: “Attorney General Seeks Contempt Order against Tim Eyman” by Rachel La Corte (Associated Press) for Tacoma News Tribune

Ethics

Hawaii: “Here’s The Deal Honolulu Made with Its Departing Ethics Director” by Nick Grube for Honolulu Civil Beat

Utah: “Judge Grants State’s Motion to Dismiss Corruption Charges against Mark Shurtleff” by Ben Lockhart and Dennis Romboy for Deseret News

Elections

“Clinton’s Convention Is Made for TV. Trump’s Was Made for Twitter.” by Jim Rutenberg for New York Times

“Wikileaks Posts Hacked DNC Voicemails” by Marshall Cohen and Tom LoBianco for CNN

“And Then There Was Trump” by Thomas Edsall for New York Times

Here is our latest edition of the News You Can Use Video Digest. Have a great weekend!

NYCU Video Digest was produced by 2016 interns Brittany Anderson and Clémence Besnard for State and Federal Communications.

Federal:

A Worry if Clinton Wins: An idle ex-president in the White House
New York Times – Patrick Healy | Published: 7/26/2016

It is not clear how Bill Clinton would function as America’s first gentleman. Advisers to Hillary Clinton said she has not yet decided if she will offer her husband a formal role if elected but noted he will cease working for the Clinton Foundation, would not be a regular at Cabinet meetings, and will do what is asked of him. Beyond that, however, details are scant. The steps that Clinton aides are planning to shape his new life do little to address a potentially thornier problem: historically, when Bill Clinton does not have a job to do, he gets into trouble.

Democrats Discreetly Turn Attention to Presidential Prospects of the Future
New York Times – Michael Shear | Published: 7/26/2016

On the main stage at the Wells Fargo Center and along the sidelines of the Democratic National Convention, more than a dozen senators, mayors, governors, cabinet members, and state lawmakers are carefully peeking past this year’s presidential election to 2020 or 2024 as they work ballrooms full of delegates, donors, and activists who would be critical to the pursuit of a national campaign. Compared with Republicans, Democrats have seen fewer of their young members rise to top positions in Washington, D.C., which can be a springboard to the White House.

DNC Turmoil Confirms Warnings: Hackers are targeting campaigns
Politico – Eric Geller | Published: 7/24/2016

The downfall of Democratic National Committee Chairperson Debbie Wasserman Schultz marks a groundbreaking moment that cybersecurity experts have long seen coming: hackers are making a significant impact on a major U.S. political campaign. Cybersecurity experts have warned for years that campaigns and political parties are woefully weak in securing their data, despite the wealth of sensitive information they carry in their computer networks and email accounts. It is an ideal scenario for all kinds of cyber wrongdoers – foreign adversaries trying to swing elections, intelligence agencies seeking information on future officials, hacktivist groups looking to grab attention, and black market hackers trying to make a quick buck.

Donald Trump Calls on Russia to Find Hillary Clinton’s Missing Emails
New York Times – Ashley Parker and David Sanger | Published: 7/27/2016

Donald Trump dared a foreign government to commit espionage on the U.S. to hurt his rival, smashing yet another taboo in American political discourse and behavior. “Russia, if you’re listening, I hope you’ll be able to find the 30,000 emails that are missing,” Trump said, referring to deleted emails from the private account Hillary Clinton used as secretary of State. “I think you’ll probably be rewarded mightily by our press.” The comments immediately drew widespread attention because they lend the impression that Trump is actively encouraging another country to commit a cybercrime against the U.S. to directly affect the presidential election. If the emails are hacked and Trump wins, it also could make him appear beholden to foreign interests.

For Special Interests, the Real Party Is Outside the Convention
Center for Public Integrity – Carrie Levine and Dave Levinthal | Published: 7/22/2016

A Rick Springfield concert at the Republican National Convention was billed as “a tribute to the House Republican Whip Team” and was to benefit charity, even though there was no admission fee. During the convention, dozens of organizations sponsored such events, all with an interest in gaining access to lawmakers and power brokers. The gatherings are almost all crafted to fit into exemptions in gift and ethics rules that allow members of Congress to come to “widely attended events” or charitable fundraisers. “These exemptions very quickly become major loopholes to allow lobbyists and others to put on events for officeholders and allow officeholders to go to them for free,” said Lawrence Noble, general counsel for the Campaign Legal Center.

In Hacked D.N.C. Emails, a Glimpse of How Big Money Works
New York Times – Nicholas Confessore and Steve Eder | Published: 7/25/2016

The leaked documents from the Democratic National Committee included thousands of emails exchanged by party officials and fundraisers, revealing in rarely seen detail the elaborate, ingratiating, and often bluntly transactional exchanges necessary to collect hundreds of millions of dollars from the party’s wealthy donors. The emails capture a world where seating charts are arranged with dollar totals in mind, where a White House celebration of gay pride is a thinly disguised occasion for rewarding wealthy donors, and where physical proximity to the president is the most precious of currencies.

IRS Gives Opposite Rulings to Convention Committees
Bloomberg BNA – Kenneth Doyle | Published: 7/25/2016

When Cleveland’s host committee for the Republican National Convention applied for charitable tax-exempt status nearly two years ago, approval by the IRS came in just 12 days. Philadelphia’s host committee for the Democratic National Convention was not so lucky. While neither the committee nor the IRS will discuss details, it is clear that approval of the Philadelphia committee’s request for the same charitable tax-exempt status did not come quickly and ultimately was denied. The Philadelphia host committee reportedly is trying to work around fundraising problems caused by IRS disapproval of its exempt status. The full impact of the IRS ruling is not yet clear, partly because the host committee is asking a state court to keep information about its donors under wraps until a federal disclosure report must be filed with the FEC two months after the convention ends.

Lobbyists Celebrate Democratic Party’s New Embrace at Convention
Time – Jay Newton-Small | Published: 7/26/2016

Heather Podesta wore a scarlet letter “L” to the last two Democratic National Conventions, a not so subtle protest over Barack Obama’s ban on lobbyists like her donating money to his cause. Podesta’s scarlet letter is gone this week because Hillary Clinton and the Democratic National Committee have lifted the ban. Podesta is just one of a legion of lobbyists coming out of the proverbial closet this convention, free to raise money, support candidates, and be proud of it for the first time in nearly a decade. Campaign finance reformers have watched the change happen with dismay.

Report: FEC leaders, managers share blame for horrid morale
Center for Public Integrity – Dave Levinthal | Published: 7/26/2016

The office of the FEC’s inspector general for months has conducted employee surveys and interviews in hopes of answering a nagging question: why, specifically, is agency morale so consistently poor? Investigators place the most blame on the six commissioners: three Democratic appointees and three Republican appointees who have regularly criticized one another and frequently deadlocked on high-profile political issues before them. The report came about in response to separate study that ranked FEC staff morale second to last among 41 small federal agencies studied.

From the States and Municipalities:

Alaska – Oil Lobbyist Treated Legislator to Meal after Oil Tax Vote
Alaska Dispatch News – Nathaniel Herz | Published: 7/25/2016

Alaska Rep. Mike Hawker accepted a $78 dinner from an oil company lobbyist the same day Hawker went to Juneau for his first vote in two months, casting the deciding vote on an oil tax bill criticized as being too industry friendly. The meal was purchased by ConocoPhillips lobbyist Michael Hurley on June 6, the same day House Bill 247 was approved 21-to-19. Hawker’s presence was essential because the Alaska Constitution requires 21 votes for passage of a bill. Hawker is suffering from terminal cancer and had not attended a floor session since early April.

California – California Treasurer Cracks Down on Pay to Play
The Bond Buyer – Kyle Glazier | Published: 7/27/2016

California Treasurer John Chiang announced that municipal finance firms seeking state business will be required to certify they will make no contributions to local bond election campaigns. State officials are concerned with “pay-to-play” tactics in which bond counsel, underwriters, and financial advisors are offering to fund or provide campaign services in exchange for contracts to issue the bonds once they are approved by voters. The new policy applies to firms and their employees, and includes both cash and-in kind contributions made either directly or through third parties. Firms that fail to make the pledge will be removed from the state’s official list of acceptable vendors and barred from participating in state-issued bonds.

California – California Wants People to Prove They Are Not Lobbyists
KPCC – Alison Noon (Associated Press) | Published: 7/21/2016

The California Fair Political Practices Commission approved a regulatory change aimed at encouraging so-called shadow lobbyists to disclose their efforts to influence legislation. Lobbyists are required to register with the state if the amount they make for communicating with government officials reaches $2,000 in any given month. The rule change permits investigators to demand evidence about lobbyists’ compensation and financial gain related to contact with government officials. It suggests that suspected unregistered lobbyists testify or provide bills, receipts, or other records to establish their compensation was not used to get access to lawmakers or dine and entertain them.

Texas – City Wins Lawsuit Despite Appearance of Loss
Austin Monitor – Jo Clifton | Published: 7/22/2016

A federal judge ruled a blackout period banning candidates in Austin from fundraising outside of the six months before Election Day is unconstitutional. U.S. District Court Judge Lee Yeakel also overturned the dissolution requirements governing candidates’ left-over campaign money. The decision upheld the $350 individual cap on donations as well as the aggregate limit on contributions from persons who live outside the city.

Virginia – As Pick for No. 2, Tim Kaine Sees Gifts Come Under Scrutiny
New York Times – Eric Lipton and Steve Eder | Published: 7/24/2016

With U.S. Sen. Tim Kaine’s selection as Hillary Clinton’s vice-presidential running mate, the gifts he received in the four years he served as Virginia’s chief executive and his time as lieutenant governor before that are certain to be cited by his Republican critics as a sign that Kaine is not as squeaky clean as he portrays himself. An examination by The New York Times of archival email traffics from Kaine’s tenure as governor shows he received gifts, in some cases, around the same time he and his staff were considering official government requests from these donors.

State and Federal Communications produces a weekly summary of national news, offering more than 60 articles per week focused on ethics, lobbying, and campaign finance.

Lobbying

“Lobbyists Celebrate Democratic Party’s New Embrace at Convention” by Jay Newton-Small for Time

California: “Judge Questions Private Talks Between Coastal Commissioners and Developer’s Consultants” by Dan Weikel for Los Angeles Times

Campaign Finance

“George Soros Rises Again” by Kenneth Vogel for Politico

California: “‘Behested Payments’ Add Another Layer of Money in Politics” by Tracy Wood for Voice of OC

Indiana: “Eric Holcomb’s Access to Mike Pence’s Campaign Cash Might Be Restricted” by Tony Cook for Indianapolis Star

Ethics

Texas: “Texas AG Took Gift While Investigating Company” by Associated Press for Texarkana Gazette

Elections

“Donald Trump Calls on Russia to Find Hillary Clinton’s Missing Emails” by Ashley Parker and David Sanger for New York Times

“Bill Clinton Praises His Wife’s Feminine Side” by Patrick Healy for New York Times

“Democrats Discreetly Turn Attention to Presidential Prospects of the Future” by Michael Shear for New York Times

The Los Angeles City Ethics Commission announced it will begin a full review of the Municipal Lobbying Ordinance at the next commission meeting on August 9, 2016.

The commission plans to focus the review on possible amendments to key definitions in the ordinance.

Comments and suggestions from the public regarding the Municipal Lobbying Ordinance can be sent to the commission via email to ethics.policy@lacity.org.

Lobbying

Alaska: “Oil Lobbyist Treated Legislator to Meal after Oil Tax Vote” by Nathaniel Herz for Alaska Dispatch News

Campaign Finance

“In Hacked D.N.C. Emails, a Glimpse of How Big Money Works” by Nicholas Confessore and Steve Eder for New York Times

“Report: FEC leaders, managers share blame for horrid morale” by Dave Levinthal for Center for Public Integrity

“DNC Sought to Hide Details of Clinton Funding Deal” by Kenneth Vogel and Isaac Arnsdorf for Politico

Ethics

California: “Grand Jury Finds Cracks in Ethics Policies” by Joshua Stewart for San Diego Union-Tribune

Kentucky: “Bevin Questions Grant to Jane Beshear Charity” by Tom Loftus for Louisville Courier-Journal

Elections

“Clinton Highlights Lack of Women in Office” by Christina Cassidy (Associated Press) for ABC News

“A Worry if Clinton Wins: An idle ex-president in the White House” by Patrick Healy for New York Times

California: “Why a New Law Isn’t Shrinking the Overload of Ballot Initiatives Much – Yet” by Laurel Rosenhall (CALmatters) for Long Beach Press-Telegram

Campaign Finance

“IRS Gives Opposite Rulings to Convention Committees” by Kenneth Doyle for Bloomberg BNA

California: “Campaign Cash: A Journey Through the Cal-Access Labyrinth” by Cosmo Garvin for Capitol Weekly

Connecticut: “U.S. Attorney Opens Probe of Malloy’s 2014 Campaign Fundraising” by Keith Phaneuf and Mark Pazniokas for CT Mirror

Ethics

“As Pick for No. 2, Tim Kaine Sees Gifts Come Under Scrutiny” by Eric Lipton and Steve Eder for New York Times

Massachusetts: “Supreme Court’s Corruption Decision Could Affect Mass. Cases” by Shelley Murphy for Boston Globe

New York: “N.Y. Lawmakers Seek to Strengthen State Bribery Law” by Matthew Hamilton for Albany Times Union

Elections

“DNC Turmoil Confirms Warnings: Hackers Are Targeting Campaigns” by Eric Geller for Politico

Louisiana: “Former KKK Leader David Duke, Citing Trump, Announces Senate Bid” by Elise Viebeck for Washington Post

Lobbying

“For Special Interests, the Real Party Is Outside the Convention” by Carrie Levine and Dave Levinthal for Center for Public Integrity

California: “California Wants People to Prove They Are Not Lobbyists” by Alison Noon for KPCC

Connecticut: “CT GOP Delegates, This Meal Is Brought to You by …” by Mark Pazniokas for CT Mirror

Campaign Finance

Texas: “City Wins Lawsuit Despite Appearance of Loss” by Jo Clifton for Austin Monitor

Ethics

Connecticut: “Wade Fires Back at Critics” by Christine Stuart for CTNewsJunkie.com

Hawaii: “School Cleared in Ethics Case” by Nathan Eagle for Honolulu Civil Beat

Maryland: “Del. Dan Morhaim, Advocate of Medical Marijuana, Draws Scrutiny for Role in Firm” by Pamela Wood and Erin Cox for Baltimore Sun

Pennsylvania: “Feds Charge Ex-Pa. Treasurer Hafer with Lying and Millionaire Donor with Fraud in Pay-to-Play Probe” by Mark Fazlollah, Craig McCoy, and Dylan Purcell for Philadelphia Inquirer

South Carolina: “Ethics Commission Narrows Governor’s Allowed Use of USC Football Tickets” by Maya Prabhu for Charleston Post & Courier

South Carolina: “Ethics Board Tells Candidates When It’s OK to Pay Family with Donations” by Seanna Adcox (Associated Press) for Aiken Standard

Elections

“Hillary Clinton Selects Tim Kaine, a Popular Senator from a Swing State, as Running Mate” by Amy Chozick, Alan Rappeport, and Jonathan Martin for New York Times

“DNC Chairwoman Will Resign in Aftermath of Committee Email Controversy” by Anne Gearan, Philip Rucker, and Abby Phillip for Washington Post

Texas: “Appeals Court Says Texas Voter-ID Law Discriminates Against Minorities” by Robert Barnes for Washington Post

Wisconsin: “Judge Issues Injunction, Allows Voters without IDs to Cast Ballots” by Patrick Marley and Jason Stein for Milwaukee Journal Sentinel

Here is our latest edition of the News You Can Use Video Digest. Have a great weekend!

NYCU Video Digest was produced by 2016 interns Brittany Anderson and Clémence Besnard for State and Federal Communications.