From the States and Municipalities:

California – Donor to Three Mayoral Candidates Hit with $170,000 Ethics Fine

Connecticut – Howls as Malloy Tries to Shorten Leash on Watchdogs

District of Columbia – D.C. Campaign Finance Proposals Await More Public Comment

Florida – Cashing in on State Contracts Becomes Growth Industry

Florida – Gov. Rick Scott Turns to Lobbyists to Help Push His Agenda

Georgia – New Lobbying Rules Would Prohibit Airfare Expenses

Illinois – Diluted Emanuel Ethics Proposal Finally Gets Nod

Kansas – Legislature Mulls Changing Official Lobbying Threshold

Massachusetts – Lynch, Markey Sign Pledge to Limit Third-Party Ads

New Jersey – Head of Lobbying Firm Hired by AshBritt Will Host Christie Fundraiser

New Jersey – N.J. Firms Donated over $700,000 to Republican Governors Association

New York – Lobby for Cuomo Keeps Donors Secret

South Carolina – South Carolina Attorney General Forwards Complaint against House Speaker Harrell to SLED

Texas – In Some Cases, Government Is All Relative

Virginia – Virginia General Assembly Displays State’s Exceptionalism and its Exceptional Weirdness

State and Federal Communications produces a weekly summary of national news, offering more than 80 articles per week focused on ethics, lobbying, and campaign finance.

News You Can Use is a news service provided at no charge only to clients of our online Executive Source Guides, or ALERTS™ consulting clients.

The American League of Lobbyists has issued a statement in response to President Obama’s State of the Union Address on Tuesday night.

Monte Ward, the organization’s president, said on their site: “Lobbyists are the professional advocates who help educate lawmakers every day about how their action (or inaction) affects the nation.  Lobbyists will be critical components helping our federal lawmakers to understand the implications of their votes on the issues that they will tackle.”

The American League of Lobbyists statement provides a summary of the group’s self understanding and a reflection on the nature of the lobbying industry, with an eye to the future. You can find a pdf file of their “Recommendations for Improving the Regulation of Federal Lobbyists” at this link.

The Chicago City Council approved phase two of Mayor Rahm Emanuel’s ethics reform. This time, however, it didn’t come easy and the mayor is not completely satisfied with its outcome. The set of reforms focused mainly on public officials.

Mayor Emanuel’s proposal included a two year ban on lobbying after leaving city council office and allowing citizens to make anonymous complaints against aldermen. The city council was against both of these provisions and eventually passed a watered-down version of the proposal.

The ban on lobbying will only last for one year and does not take effect until January 1, 2014. The idea of anonymous complaints was completely tossed out; as the aldermen were afraid the tactic would be used by political enemies to gain an advantage. Emanuel was not pleased with the changes. He vowed to continue to fight for the anonymous complaints and mentioned the aldermen are just playing into the hands of the cynics.

Following the council’s vote Emanuel said, “I believe all of you work really hard. You don’t get credit for how hard you work. You get an unfair rap. But when you take an action like you just took, it reinforces a cynicism about you.” He added, “I want you all to know that is not the end of the process. I’m going to continue to do it.”

Photo of the Daley Plaza and Chicago City Hall by JeremyA on Wikipedia.

Lobbying

Kansas: “Legislature mulls changing official lobbying threshold” by Vikaas Shanker in the Topeka Capital-Journal.

Louisiana: “Study ties Jindal tax plan to ALEC” in the Baton Rouge Advocate.

Maryland:  “Bills seek to slow the revolving door of public officials into lobbying” by Becca Heller in the Maryland Reporter.

Campaign Finance

“ABA Supports Disclosure of Secret Political Spending” by Ian Vandewalker in the Brennan Center for Justice Blog.

Hawaii: “Mayor donor fund took in $360,000; Ethics digging deeper” by Gina Mangieri in KHON2 News.

New Jersey: “N.J. firms donated over $700,000 to Republican Governors Association” by John Reitmeyer and Melissa Hayes in the Bergen Record.

Rhode Island: “Local Politicians Owe $1.3M in Campaign Fines” by Stephen Beale in GoLocal Prov.

Ethics

Connecticut: “Conflict of interest bill gains traction” by Ken Dixon in the Connecticut Post.

Iowa: “Ethics committee won’t reprimand Iowa state senator” by Mike Wiser in the Quad-City Times.

Kentucky: “Metro ethics bill passes House panel” by Joseph Gerth in the Courier-Journal.

Maine: “Maine bill seeks to end cozy relations between state officials, private firms” by Naomi Schalit and John Christie in the Portland Press Herald.

Rhode Island: “Drive to reinstate R.I. Ethics Commission power over legislators resumes” by Katherine Gregg in the Providence Journal.

Lobbying

“The Dodd-Frank Cashout: Frank staffers launch lobbying firm” by Timothy P. Carney in the Washington Examiner.

“Al Jazeera signs a lobbying firm” by Anna Palmer in Politico.

“K Street Files: Ex-Frank Aides Open Lobbying Shop” by Kate Ackley in Roll Call.

“Lobbying World” in The Hill.

Campaign Finance

Arizona: “Teeth sought for campaign-finance law” by Howard Fischer in the Arizona Daily Star.

Utah: “Senate OKs $50 limit on anonymous campaign contributions” by David Montero in the Salt Lake Tribune.

Redistricting

“Redistricting board waiting on word from court” by The Associated Press in the Juneau Empire.

Open Government

“Mo. lawmakers endorse Sunshine Law measures” by The Associated Press in the News Tribune.

State of the Union

“Word cloud: Obama’s State of the Union speech” by Megan H. Chan in Politico.

“The State of the Union speech — in word clouds” by Aaron Blake in the Washington Post.

Q. We’ve had some disagreement internally within our organization – please help. As a federal registrant employing in-house lobbyists, are we only required to report the time and expenses associated with our “registered” lobbyists.

A. It’s a good question. The answer to which often gets lost amongst the efforts to report lobbyists’ activities. Federal registrants are certainly required to make best efforts to track, capture, and report the lobbying activities and expenses of those employees who meet the 20% threshold standard (lobbyist employee). In addition, registrants are equally required to track, capture, and report expenditures associated with employees who do not meet the 20% threshold but still engage in lobbying activities during the course of the quarter (non-lobbyist employees.) The names of non-lobbyist employees are not included on the report and neither is information related to what issues they addressed or contacts they made. That said, the Secretary of the Senate and Clerk of the House have consistently advised that all employee time spent engaged in lobbying activities should be included when determining an organization’s lobbying expenses, even when the employee(s) does not meet the statutory definition of being a lobbyist. In line with the best efforts standard, then, it is important to have in place reasonable, demonstrable processes to capture both lobbyist and non-lobbyist activities.

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

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 the State and Federal Communications’ digital encyclopedias for lobbying laws, political contributions, and procurement lobbying, and can be found in the client portion of the State and Federal Communications’ website.

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

Lobbying

“Wall Street tipsters brace for exposé on their industry, scrutiny from Capitol Hill” by Kevin Bogardus in The Hill.

Wisconsin: “Bill to prevent revolving door” by Alice Coyne in the Badger Herald.

Campaign Finance

“Congressman seeks to overturn Citizens United” by the Associated Press in U.S. News & World Report.

Arizona: “Phoenix launches searchable campaign-finance website” by Dustin Gardiner in the Arizona Republic.

Florida: “House moves ahead with plan to end slush funds, raise campaign contribution limits to $10,000” by Mary Ellen Klas in the Miami Herald.

Ethics

Florida: “Former state GOP chairman Jim Greer pleads guilty to theft, money laundering” by Lucy Morgan in the Miami Herald.

Social Media

Eric Brown’s Political Activity Law blog points out that next week is Social Media Week.

“Do Governments Need Personal Social Media Policies?” by Colin Wood in Government Technology.

The first rule details when non-lobbyist employees must register as a lobbyist. In North Carolina, an employee must register as a lobbyist if a significant part of that employee’s job duties include lobbying. The new rules stipulate that this threshold is met if at least five percent of an employee’s duties include direct or goodwill lobbying during any rolling 30 day period. Once this threshold is met, the employee must register as a lobbyist within one business day.

The second rule explains what must be included when providing a description of a reportable expenditure for the lobbyist reports. The description must identify what was given, who the third party was that received the expenditure, and the name of the event or meeting where the expenditure was given.

The third rule describes how to determine the immediate family member who is connected with a reportable expenditure. On the reports, the name of the designated individual or immediate family member connected with the expenditure must be reported. The person that must be identified is the person who either received or benefited from the expenditure, or who requested the expenditure be made on someone’s behalf.

The fourth and final rule effecting lobbying details what must be reported in connection with a lobbying event. The entire cost of a lobbying event must be reported, rather than just the costs of any gifts given. Examples of the non-gift expenditures that must be reported include supplies, facility rental, food, name badges, flowers and other decorations, planning services, and all other expenses and charges incurred in connection with the lobbying event.

Lobbying

District of Columbia: “Washington lobbying is key part of Williams Mullen’s evolution” by Catherine Ho in the Washington Post.

North Dakota: “Bill would allow use of public funds to hire lobbyists” by Nick Smith in the Bismarck Tribune.

Texas: “Despite Reforms, Some Elected Officials Still Lobby” by Aman Batheja in the Texas Tribune.

Campaign Finance

“Former Rep. Jesse Jackson Jr. admits to campaign finance violationsFormer Rep. Jesse Jackson Jr. admits to campaign finance violations” by ASndrew Rafferty in NBC News.

“Review: Ex-House members still dipping into campaign funds” by Fredreka Shouten in the Montgomery Advertiser.

District of Columbia: “D.C. campaign finance proposals await more public comment” by Tim Craig in the Washington Post.

Florida: “Indicted Developer Jay Odom Set to Enter Plea in Campaign Finance Case” by Lucy Morgan in the Ledger.

Georgia: “Ralston Amends Proposed Lobbying Rules” by the Associated Press in GPB News.

Iowa: “Campaign finance bill offers new approach” by William Petroski in the Des Moines Register.

Montana: “Several campaign finance bills introduced in 2013 session” in the Missoulian.

Philadelphia, PA: “2 move to regulate campaign $” by Jan Ransom in the Philadelphia Inquirer.

Ethics

Connecticut: “Legislator pushes conflict of interest bill” by Brian Lockhart in the Connecticut Post.

Idaho: “Lawmakers propose ethics committee” by Katherine Wutz in the Idaho Mountain Express.

Oklahoma: “New Ethics Commission leader seeks better campaign-reporting software” by Barbara Hoberock in Tulsa World.

West Virginia: “Ethics Commission in contract talks with director finalist” by Phil Kabler in the Charleston Gazette.

Open Government

Oklahoma: “Disputes over Oklahoma’s open records and open meetings laws continue” by Zeke Campfield and Phillip O’Connor in the Oklahoman.

Redistricting

Ohio: “Ohio Redistricting Overhaul Gains Support” by Josh Goodman in Stateline.

Social Media

“Social Media: Becoming a Trusted Source for Political Information” by Pam Greenberg in NCSL’s The Thicket.

National:

U.S. Groups Flex Their Muscles in Brussels

From the States and Municipalities:

California – FPPC Examining Changes to California Lobbyist Disclosure

Colorado – Judge Denies Halting Ethics Probe of Gessler; Appeal Coming

Kansas – NRA Lines Up Support for Anti-Public Lobbying Bill

Maine – America’s Capital of Divided Government

Maryland – Maryland Ethics Panel Says Delegate Should Not Have Tried to Silence Football Player

Massachusetts – DiMasi, Lobbyist Ask Appeals Court to Overturn Convictions

Massachusetts – Lobbyists Win Challenge to Galvin Requirement

Missouri – Missouri Gov. Nixon Got Donation from Contractor While Decrying Big Political Money

Nebraska – Nebraska Lt. Gov. Rick Sheehy Resigns in Scandal Involving Cell Phone Calls to Four Women

New Jersey – N.J. Budget Official Questions Florida Debris Firm’s $100 Million Contract, Political Connections

New York – Two Campaign Aides Going on Trial, but Comptroller May Face Judgment

Texas – Text Donations Spread Down Ballot

State and Federal Communications produces a weekly summary of national news, offering more than 80 articles per week focused on ethics, lobbying, and campaign finance.

News You Can Use is a news service provided at no charge only to clients of our online Executive Source Guides, or ALERTS™ consulting clients.

Washington’s grassroots lobbying disclosure law is still safe after a federal appellate court dismissed a challenger’s case. The 9th U.S. Circuit Court of Appeals dismissed the claim by Many Cultures, One Voice and Conservative Enthusiasts challenging the state’s disclosure laws for grassroots lobbying. The law requires groups to disclose contributions and spending once it has spent $500 in one month or $1,000 over a three-month period for grassroots lobbying.

The court ruled the two groups did not have standing to sue, because they never actually met the threshold for having to disclose its activities. Initially, the two groups argued the disclosure requirements thwarted free speech, but the trail court ruled against the groups saying the law did not violate the First Amendment.

The groups are now planning their next course of action. They may petition the appellate court to vacate the trial court’s ruling. If this were to happen, it would free up other groups to challenge the law without the benefit of a prior ruling in favor of the state.

The New York Joint Commission on Public Ethics (JCOPE) is currently in the process of developing draft regulations for the state’s gift laws. These draft regulations will attempt to provide clarity and guidance to those regulated by the commission.

The draft regulations concerning gifts given by lobbyists allow lobbyists to follow a step-by-step guide to determine whether he or she is allowed to legally give the gift. JCOPE is accepting written comments on the draft regulations until February 15, 2013. JCOPE will then use those written comments to draft proposed regulations.

Updated February 13, 2013: The New York Joint Commission on Public Ethics has extended the deadline to submit written comments on the draft regulations to March 8, 2013.

An argument put forth by the Massachusetts Secretary of State’s office requiring lobbyists to disclose every communication with public officials “makes absolutely no sense,” wrote Superior Court Judge Janet Sanders.

Secretary of State William Galvin’s office had argued it has the authority to interpret “all direct business associations with public officials” expansively and require the names of all officials with whom a lobbyist has communicated. In reaction, a lawsuit was brought against the Secretary of State’s office by the ACLU, AirStrategies, the Associated Industries of Massachusetts, Citizens for Juvenile Justice, Common Cause, and the Conservation Law Foundation.

According to the Boston Herald, the arguments in favor of the disclosure requirement were dismissed by the judge in her decision.