Federal:

Company Shops for Campaign Cash

Former Lobbyist Sent to Jail for a Few Hours for Taking Hill Aides to 2003 World Series Game

‘Scarlet L’ for K Street Returns as Obama Sharpens 2012 Rhetoric on Lobbyists

‘Super PAC’ American Crossroads Seeks Permission to Feature Candidates in Ads

The Outsized Returns from Lobbying

From the States and Municipalities:

California

California OKs Donations via Text

California

L.A. Ethics Commission Slaps Developer with Maximum Campaign Fine

California

Proposed California Regulations Spell Out Gift-Reporting Requirements for Elected Officials

Massachusetts

DiMasi Friend Admits Breaking Massachusetts Lobbying Law

New Mexico

GOP Files Lawsuit against Newly Imposed Campaign Contribution Limits in New Mexico

Tennessee

Tennessee Lawmaker Arrested on DUI, Gun Charges

Vermont

Judge: Republican Governors Association violated Vermont campaign finance laws

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.

Jim Sedor is editor of News You Can Use.

The Economist reported on a recent study by the analysis firm Strategas, which says companies that spend more on lobbying do better over time on the S&P 500.

Here is the article in the Economist: “Money and politics: Ask what your country can do for you” from October 1, 2011.

Brad Plumer also covered the story in “The outsized returns from lobbying” from yesterday’s Washington Post.

California Governor Jerry Brown has signed senate bill 398 into law. The bill alters definitions and reporting requirements for those who do business with the board of a public pension or retirement system to manage securities or other assets and went into effect upon signature.

Specifically, the new law modifies the definition of external managers to mean a person who is seeking to be, or is, retained by a board or an investment vehicle to manage a portfolio of securities or other assets for compensation, or a person who manages an investment fund, and who offers or sells, or has offered or sold an ownership interest in the investment fund to a board or investment vehicle. The law also alters the definition of a placement agent to a person directly or indirectly hired, engaged, or retained by, or serving for the benefit of or on behalf of, an external manger and who acts or has acted for compensation as a finder, solicitor, marketer, consultant, broker, or other intermediary in connection with the offer or sale to a board or investment vehicle either the investment management services of the external manager or an ownership interest in an investment fund managed by the external manager.

Additional changes made as the result of the new law include the exemption of placement agents from any requirements imposed by a local government agency, including lobbyist registration and reporting, if the placement agent is an employee, officer, or director of an external manager, or of an affiliate of an external manager, and the external manager is registered as an investment adviser or a broker-dealer with the Securities and Exchange Commission or any state securities regulator. Further, placement agents are exempt from local requirements if the external manager is participating in a competitive bidding process, such as a request for proposal, or has been selected through a competitive bidding process and is providing services pursuant to a contract executed as a result of that bidding process, or when the external manager, if selected through competitive bidding, has agreed to a fiduciary standard of care for the contract.

Federal:

How One Criminal Case Hit K Street

Hybrid PACs: Super PACs and Traditional PACs Can Merge

Lobbyists In On ‘Super’ Secrets

OMB Finalizes Details on White House Lobbying Reform Rules

From the States and Municipalities:

Alabama

Commission’s Opinions Further Define 2010 Ethics Law

Delaware

Colbert Takes Satirical Swipe at Abuse of Delaware Spending Disclosure Laws

Minnesota

Disclosure Rules Apply, Campaign Finance Board Says

New Jersey

N.J. Ethics Reform Efforts Bogged Down for Year

New Mexico

New Mexico Governor Signs Bill to Close Loopholes in State Contract Bidding

New York

NYC Mayor Cross-Examined at Ex-Operative’s Trial

Texas

Recall Case Likely to Extend Beyond El Paso

Utah

Lobbyists Want Keys to the Gym and Valet Parking at Capitol

Virginia

Trackers an Evolving but Undeniable Political Force

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.

Jim Sedor is editor of News You Can Use.

Registered federal lobbyists may not serve on any boards, commissions, or similar groups created by the President, the Congress, or an Executive Branch department or agency, the Office of Management and Budget (O.M.B.) has affirmed.

The O.M.B. issued its Notice of Final Guidance detailing, in a question and answer format, the limitations of federal lobbyists’ service on federal boards and commissions. The policy does not apply to full-time federal employees, state lobbyists, or employees of organizations that engage in lobbying activities. If an appointment is made pursuant to statutory authority or presidential directive by Congress or state governors, the O.M.B. encourages the appointments to be made to individuals who are not federally registered lobbyists whenever possible.

The O.M.B. policy was created at the directive of a June 18, 2010 Presidential memorandum “Lobbyists on Agency Boards and Commissions.” Federal lobbyists on boards and commission as of June 18, 2010 may serve out the remainder of their terms.

The O.M.B.’s final guidance will be effective 30 days from issuance in the Federal Register.

State Senator Lou Correa is planning to introduce legislation that would make members of the public who are appointed to serve on boards subject to the state’s revolving door provision.

The legislation would require that all board members wait 12 months after terminating board service before lobbying their former colleagues.

Photo of the California Senate chamber by David Monniaux on Wikipedia.

NCSL’s blog The Thicket at State Legislatures put up a post yesterday that discusses where legislators turn in order to get information to help them make public policy decisions.

The blog cites two sources of information and makes a comparison. The first source is a survey by NCSL, the Council of State Governments, and the State Legislative Leaders Foundation from 2002. The second source is a book called Power, Knowledge, and Politics: Policy Analysis in the States by John Hird from 2005.

The two surveys approached the question in different ways, but according to the blog post, they came up with the same rankings. Take a look at this chart, which summarizes it with bar graphs. Interest groups and lobbyists appear in eighth place on the list.

Retired Major General David W. Gay has been selected to serve as the chairman of the nine-member Citizen’s Ethics Advisory Board. Gay was initially appointed to his position on the board by then-Governor M. Jodi Rell on October 1, 2009.

Prior to his appointment, Gay served as the Adjutant General of the Connecticut National Guard from 1992 to 1999, when he retired after forty-three years of distinguished military service. His military career began in 1953 when he served in the U.S. Marine Corps. He enlisted in the Guard in 1960 as a PFC and served in several different positions and disciplines at all levels.

Further, Charles F. Chiusano has been selected to serve as vice-chairman of the board. Chiusano was appointed in 2010 by Senate Minority Leader John McKinney after he had retired from his position as vice president of Avant Business Services Corporation. Each member’s one year term fulfilling the position is effective as of October 1, 2011.

Only lobbyists in Alaska who are constituents in a state candidate’s newly certified district may donate to a candidate’s campaign, an Advisory Opinion from the Alaska Public Offices Commission has declared.

Because a lobbyist residing in a candidate’s district may contribute to a candidate, Representative Bob Lynn requested an opinion regarding whether a lobbyist in his current district could donate to his campaign when he or she may not be a constituent in his proposed new voting district.

Advisory Opinion 11-14-CD concludes candidates “will only be able to accept donations from lobbyists residing in the new district.”

Presently, only candidates for the proposed new districts, and not the current districts, are being certified by the Division of Elections. In its analysis, the Advisory Opinion also articulates, “Whether or not a lobbyist resides in the candidate’s district is determined on the day the contribution is accepted.”

Federal:

Business Executives Call for End to Anonymous Cash

In Turn to Politics, Facebook Starts a PAC

Political Embezzlement Rises as U.S. Campaign Accounts Swell

Solyndra’s Lobbying Not Disclosed by Energy under Stimulus Guidelines

From the States and Municipalities:

Colorado

Campaign Finance Law Argued Before Colorado Supreme Court

Florida

After ‘Wild West,’ Palm Beach County Lobbyists Face New Rules

Indiana

Federal Judge Strikes Down Portion of Indiana ‘Robo-Call’ Ban

Maryland

State Senator’s Future Hangs in the Balance at Corruption Trial

Minnesota

Campaign Finance Board Releases Guidelines on Ballot Initiatives

Pennsylvania

Ex-Judge Gets 17 1/2 Years in Pa. Kickbacks Case

Rhode Island

Arrested Rhode Island Representative Won’t Resign, Will Run Again

Tennessee

Tennessee Lawmakers’ Ethics Panel Has Own Critics

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.

Jim Sedor is editor of News You Can Use.

On Monday, the American League of Lobbyists (ALL)  made a statement against a new Obama administration proposal restricting lobbyists’ gifts to executive branch employees. It would also restrict those employees’ attendance to certain events sponsored by lobbyists, companies, and organizations.

Howard Marlowe, president of the organization, states: “The American League of Lobbyists strongly objects to this proposed rule and asks that it be withdrawn immediately. The Administration has offered no reports of even a single abuse of its current regulations to warrant the severe restrictions it has proposed on the mutual flow of information and expertise between lobbyists, their employers, and Federal workers.”

Here is a draft summary of the Obama administration’s proposed rule.

The “Lobbying in the News” page for ALL lists these three articles covering the news:

• “Lobbyists object to Obama proposal that would tighten rules for federal workers,” by T.W. Farnam in the Washington Post.
• “Lobby league opposes Obama rule,” by Anna Palmer and Dave Levinthal on the Politico Influence page.
• “Lobbyists’ group objects to new rule banning gifts to all federal employees,” by Kevin Bogardus in The Hill.

You can keep up with the latest discussions on the American League of Lobbyists Twitter feed (@LobbyistsLeague).

Executive Sourcebook on Lobbying Laws:

1. We are separating the penalties so you will see what they are for registration, reporting, and gift violations.

2. Does the jurisdiction have a document retention policy?

3. Is gift splitting allowed?

4. We are also separating the gift restrictions for lobbyists and non-lobbyists.

Executive’s Sourcebook on Political Contributions:

1. What is the jurisdiction’s document retention policy?

2. What restrictions are there on fundraising, as applied both to corporations attending a political event and as applied to corporations holding its own fundraiser?

Executive’s Sourcebook on Procurement Lobbying:

1. Restrictions on pre-RFP communications between a bidder and the procurement department?

2. Are there any post-RFP “cone of silence” restrictions?

3. Difference between “bidder” and “contractor.”

It continues to be our goal to be your #1 online resource for lobbying, political contributions, and procurement lobbying.

Until next month, let your fingers do the walking at www.stateandfed.com and see the amount of information available to you and your organization.

Elizabeth Z. Bartz
President and CEO

Q. I’m registered as a legislative lobbyist in Indiana.  How should I keep track of reportable expenditures for my upcoming report due in November?

A. The Indiana Lobby Registration Commission (ILRC) is currently in the process of reviewing the reporting guidelines for lobbyist expenditures and gifts.  As fall kicks off and the November reporting deadline will soon be upon us, it is important to review key reporting changes.

Specifically, the ILRC does not consider a meal expenditure on behalf of a legislator to be a gift, but instead, an entertainment expenditure, as long as the lobbyist is present when the meal is consumed.  Per the ILRC’s reporting guidelines, please make sure you save an itemized receipt outlining the exact cost of the meals associated with reportable legislators.  Here are some important things to remember regarding entertainment expenditures, including meals:

•  When determining how much to attribute to a particular legislator, only direct costs must be associated with the legislator.   Unlike most states, determining a pro-rata cost of an official’s meal by dividing the bill by the number of people present is not permissible.  Instead, you must save an itemized receipt, and attribute only the amount of the specific items ordered for that particular legislator.  Tax and tip must be appropriately allocated as well.

• If you are not present when making an expenditure, this qualifies as a gift, and is subject to special reporting guidelines.  Starting with this reporting period (form was not developed until late April), a gift report must be submitted if a gift is given to a legislator equaling $50.00 per day, or $250.00 in the aggregate.   This report is due 15 business days after the gift is given.  A copy must be sent to the legislator who is named in the report.  Moreover, informed prior consent must be obtained from the legislator before the gift is given.

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.

National:

Election Spending to Exceed $6 Billion Thanks Partly to Jim Bopp

Twitter to Launch Political Advertising

Federal:

K Street Cool to Obama Lobbying Plan

Watchdog Spotlights Lawmaker Ethics in ‘Most Corrupt’ Report

From the States and Municipalities:

Alabama

Former Governor Riley Gets Ethics Training He Pushed

California

California Pension Managers Fined for Unreported Gifts

Connecticut

‘Shock Jock’ Hal Turner Acquitted in Connecticut Threats Case

District of Columbia

Wells Drafts D.C. Bill to Limit Lobbyists’ Influence

Illinois

The Price of Influence in Chicago

Louisiana

Sugar Bowl in Violation of Tax Law with Purchases to Fundraiser

Missouri

T.D. El-Amin Gets Record Ethics Fine

Montana

Supreme Court Looks at Campaign Finance for Political Spending

Oklahoma

Oklahoma High Court Hears Former Senator’s Appeal

Pennsylvania

Soon, Lobbyists Must Register

Wisconsin

Judge: Wisconsin campaign law is unconstitutional

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.

Jim Sedor is editor of News You Can Use.