January 15, 2016 •
News You Can Use Digest – January 15, 2016
National: Groups Decrying ‘Dark Money’ Use Shadowy Money Themselves Center for Public Integrity – Liz Essley Whyte | Published: 1/14/2016 A number of groups that advocate against anonymous donations in politics are themselves responsible for putting money into elections that cannot […]
National:
Groups Decrying ‘Dark Money’ Use Shadowy Money Themselves
Center for Public Integrity – Liz Essley Whyte | Published: 1/14/2016
A number of groups that advocate against anonymous donations in politics are themselves responsible for putting money into elections that cannot be traced, often hidden under layers of opaque networks. The organizations either gave to ballot measure campaigns, paid for messages about candidates, or gave to PACs. But many of the groups identified by the Center for Public Integrity said they already exceed what the law requires by disclosing at least some of their donors. Some relied on an argument that opponents of disclosure raise regularly: their donors could face hostility or mistreatment if the public knew the donors’ identities.
State Legislatures Tweak Lobbying Rules as Influence Industry Targets Their Capitols
Washington Post – Catherine Ho | Published: 1/7/2016
Legislatures around the country are enacting new rules to regulate lobbying. Many focus on disclosure as states seek to better define who lobbyists are and what they are allowed to do. The new rules are not expected to dramatically change the lobbying landscape in any of the states, but they do signify a movement by governments to tweak, improve, and clarify rules for lobbyists at a time that many hotly contested lobbying fights, such as those over gun laws, are progressing more quickly in state capitals than they are in Congress.
Federal:
Carson Campaign in Turmoil as Finance Chair Quits
Politico – Kyle Cheney | Published: 1/14/2016
Ben Carson’s presidential campaign was shaken by another high-profile resignation, with finance Chairperson Dean Parker leaving amid scrutiny over his grip on the campaign’s fundraising operation and the perception he has benefited improperly from campaign spending. From chartered flights to investments in ineffective paper mailers in early voting states, decisions made by staff have raised questions in recent months about whether the campaign is spending its money wisely. The resignation comes after it was reported that Parker was paying himself a salary of $20,000 per month, which is unusually high for such a position.
From the States and Municipalities:
Florida – Miami Beach Commissioners Unanimously Pass Stricter Campaign Finance Laws
Miami Herald – Joey Flechas | Published: 1/13/2016
Miami Beach commissioners approved more stringent campaign finance laws after last year’s controversy about the role of special-interest money in local politics. Commissioners and candidates will no longer be able to solicit PAC contributions from lobbyists and vendors who have city contracts. The law also prohibits indirect solicitations, such as a third party asking lobbyists and vendors on behalf of candidates and elected officials.
Florida – Perry Violated Ethics Laws in Lobbying Scott on Medicaid Dental Provider
PoliticoFlorida – Marc Caputo | Published: 1/14/2016
Though Florida law says “a person may not lobby an agency [of state government] until such person has registered as a lobbyist,” Rick Perry did not do that when he met with Gov. Rick Scott, a top staffer, and the head of the Agency for Health Care Administration. The meeting was left off of Scott’s official daily schedule, which was updated hours later after a reporter inquired about it. It took Perry a few more hours to register as a lobbyist for MCNA Dental as questions were raised about whether he was following the law. The meeting was set up by Southern Strategy Group, a lobbying firm that represents MCNA Dental, to discuss legislation that would eliminate dental services from the list of health care services that managed care plans are required to offer beneficiaries.
Maine – Maine Governor Blames Media for Racially Charged Language Dust-Up
CNN – Gregory Krieg | Published: 1/8/2016
Maine Gov. Paul LePage apologized for his remark about out-of-state drug dealers impregnating “young white” girls, calling it a slip of the tongue and saying he did not mean to inject race into discussion of Maine’s heroin epidemic. LePage blamed reporters for unfairly focusing on the slip-up in which he described the drug dealers as “guys with the name D-Money, Smoothie, Shifty” and added, “Half the time they impregnate a young white girl before they leave.”
Massachusetts – Dispute Over State Senator’s Dirty Laundry Raises Questions
Boston Globe – Andrea Estes | Published: 1/12/2016
The former owner of Woodlawn Cleaners said Massachusetts Sen. Brian Joyce received tens of thousands of dollars in free dry cleaning services over the course of a decade. Jerry Richman said he offered to clean Joyce’s clothes for free when Joyce was running for state Senate in 1997, but there was no formal or written agreement. Joyce’s attorneys say the free dry cleaning was in exchange for legal services provided by the Joyce over the years. Ethics experts said public officials in Massachusetts should not accept any services worth more than $50. Even if he traded legal services for the dry cleaning, he would have to keep records to show he did not receive a net benefit of $50 or more. Joyce has acknowledged there is no written record of the dry-cleaning-for-legal services arrangement and he cannot remember when it began.
Massachusetts – Walsh Reverses Course, to Back Lobbying Rules
Boston Globe – Andrew Ryan and Mark Arsenault | Published: 1/9/2016
Boston Mayor Martin Walsh said he will propose regulations for municipal lobbyists that could for the first time require public disclosure of their efforts to influence development, contracts, and permits. Walsh’s announcement comes after The Boston Globe reported how a childhood friend and former law partner of the city’s top lawyer leveraged his personal relationships for introductions and access to key administration officials. Walsh said the reform will be modeled on state lobbying laws, which require lobbyists to disclose their clients, the matters on which they are lobbying, and their compensation.
Missouri – House Approves Ethics Package Including Rowden Proposal Limiting Lobbying
Columbia Tribune – Rudi Keller | Published: 1/14/2016
The Missouri House passed four ethics bills despite objections that the bills were too weak and too narrowly drafted. The package limits officials’ ability to lobby after leaving office, ban work as a political consultant while in office, and require more frequent reporting of personal finance and out-of-state trips. Under one bill, lawmakers and statewide officials elected this year and appointed officials confirmed by the Senate would have to wait one year after leaving office before working as a lobbyist. Officials who leave office before the end of their term would have to wait until the end of the term before the one-year waiting period begins. Another bill would require a report within one month when an official accepts a trip paid by a third party.
Montana – New Campaign Finance Rules Take Effect in Montana
Billings Gazette; Associated Press – | Published: 1/8/2016
New campaign finance rules took effect in Montana recently. The regulations for a law passed last year aim to make campaigns more transparent after the Citizens United decision that allowed corporations and unions to spend unlimited amounts of money in elections. That ruling has given rise to independent expenditures made by social welfare groups that do not report their donors or spending. Now, groups registered as social welfare or issue advocacy organizations will have to make those disclosures if they produce advertisements or other electioneering communications that mention an election or a candidate, or use a candidate’s image.
New York – New York’s Ethics Rule Could Infringe on Free Speech, Experts Say
Crain’s New York Business – Rosa Goldensohn | Published: 1/13/2016
The Joint Commission on Public Ethics updated an advisory opinion to say that communication between public relations consultants and the press on public policy should count as lobbying. If a consultant has input into the content of such a message and helps to deliver it, that consultant would apparently be a lobbyist under the new rules. The advisory opinion also includes provisions that would require consultants who connect clients with lawmakers to register as lobbyists.
Pennsylvania – City Campaign Finance Limits Increased
Philadelphia Inquirer – Claudia Vargas | Published: 1/11/2016
The Philadelphia Board of Ethics announced that campaign contribution limits have increased for the next four years. Candidates for city office may now accept up to $3,000 from an individual contributor per calendar year, up from the previous $2,900 limit. They may also accept up to $11,900 from groups or businesses, up from the prior $11,500 cap.
Pennsylvania – Struggling Philadelphia Inquirer Is Donated to Nonprofit in Groundbreaking Deal
Washington Post – Fred Barbash | Published: 1/12/2016
H.F. Lenfest, the owner of The Philadelphia Inquirer, The Philadelphia Daily News, and Philly.com, announced he had donated the publications to a newly formed nonprofit journalism institute. The publications will continue to run independently. The new ownership structure comes as daily newspapers contend with falling circulation and dwindling advertising dollars, and many have sought new business models and new revenue sources to combat the decline. “My goal is to ensure that the journalism traditionally provided by the printed newspapers is given a new life and prolonged, while new media formats for its distribution are being developed,” said Lenfest.
West Virginia – Proposed Changes to State Ethics Act Divide Lawmakers
Charleston Gazette – Phil Kabler | Published: 1/11/2016
West Virginia lawmakers on the joint House and Senate Judiciary Committee were divided on two ethics reform bills. That included proposed legislation that would ban registered lobbyists from contributing to campaigns for statewide elected officials or for legislators, with some lawmakers concerned about loopholes in the proposal. Several noted the bill would ban lobbyists and their spouses from making campaign contributions, but does not prohibit the lobbyists’ employers from contributing, or bar lobbyists from hosting fundraisers.
Wisconsin – Elections Board Says Parties Must Report Corporate Donations
Milwaukee Journal-Sentinel – Patrick Marley | Published: 1/12/2016
The Government Accountability Board (GAB) shifted from its stance that Wisconsin’s new campaign finance laws do not require political parties and legislative campaign committees to disclose contributions from corporations. The board unanimously adopted a motion requiring the parties and committees to report such contributions as well as how they spend the money. GAB Director Kevin Kennedy said board staff incorrectly told people the law did not mandate such disclosures. A section of the new law allows corporations to donate up to $12,000 to political parties and campaign committees controlled by legislative leaders. The parties and the committees are limited to spending that money on administrative expenses. They cannot spend the money on expressly advocating for a candidate or pass it on to a candidate.
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.
January 8, 2016 •
News You Can Use Digest – January 8, 2016
National: National Liberal Groups to Push ‘Record’ Number of 2016 Ballot Measures Center for Public Integrity – Liz Essley Whyte | Published: 1/6/2016 Liberal groups working at the national level are using state ballot initiatives as their weapon of choice in […]
National:
National Liberal Groups to Push ‘Record’ Number of 2016 Ballot Measures
Center for Public Integrity – Liz Essley Whyte | Published: 1/6/2016
Liberal groups working at the national level are using state ballot initiatives as their weapon of choice in 2016, but given the costs, they are carefully planning exactly where to push these measures. That top-down approach seems ironic. The initiative process was put in place at the beginning of the 20th century as a way for local citizens to band together to pass laws. And voters may not be aware that national groups are helping fuel the ballot fights in their backyards. Still, national liberal leaders see state ballot measures as their best option for winning on some issues. National conservative groups, meanwhile, seem poised to play defense, setting up a battle of outsiders on state playing fields.
Federal:
For Hillary Clinton, Old News or New Troubles?
Washington Post – Karen Tumulty and Frances Stead Sellers | Published: 1/6/2016
Donald Trump’s focus on the scandal that almost derailed Bill Clinton’s presidency is something Hillary Clinton’s campaign long expected. What remains to be seen is whether a reminder of allegations of sexual impropriety against President Clinton, which were deemed to have varying levels of credibility when they were first aired, can gain new traction in a different context. The fresher case being made is that Hillary Clinton has been, at a minimum, hypocritical about her husband’s treatment of women, and possibly even complicit in discrediting his accusers. And it is being pressed at a time when there is a new sensitivity toward victims of unwanted sexual contact.
How Obama Failed to Shut Washington’s Revolving Door
Politico – Josh Gerstein | Published: 12/31/2015
Barack Obama’s vow to end the “revolving door” in Washington was central to the narrative animating his 2008 campaign: a promise of wholesale change to business as usual. But seven years into Obama’s presidency, the “revolving door” shuttling officials out of his administration is spinning at a rapid clip, and he has seen his campaign promise founder against the deeply ingrained culture of selling government expertise in the nation’s capital. “They were overpromising on something they could never deliver – it’s worse than doing nothing,” said Melanie Sloan, former executive director of Citizens for Responsibility and Ethics in Washington.
Marco Rubio’s Shiny Boots Stir Up the Presidential Race
New York Times – Vanessa Friedman | Published: 1/7/2016
Are they a surprisingly fashionable choice of footwear (One Direction’s Harry Styles is said to have a similar pair) or a less generously termed set of “men’s high-heeled booties?” The political and fashion world have been set atwitter since New York Times reporter Michael Barbaro spotted U.S. Sen. Marco Rubio “rocking some seriously fashionable black boots” in New Hampshire. The fashion choice had become a target of ribbing from his rivals for the Republican presidential nomination. “We’ve seen Rubio has those cute new boots and I don’t want to be outdone,” U.S. Sen. Rand Paul said, while surrounded by shelves of shoes in Whoopi Goldberg’s dressing room before an appearance on “The View.”
From the States and Municipalities:
Colorado – Colorado Ethics Commission Has No Investigators, Little Authority
Denver Post – Joey Bunch | Published: 1/4/2016
The Colorado Independent Ethics Commission is struggling to do its work for lack of authority, resources, and money, say critics who include former administrators. The commission has declined to hear about 87 percent of the complaints it has received since it was created in 2006. Unless a public official or government employee received a gift worth more than $53 or seeks a job as a lobbyist, there is little else the commission concerns itself with. Nonetheless, there is a proposed ballot question for next year to extend the commission’s narrow authority over public employees to the judicial system.
Florida – Painful Lessons for a Troubled Florida Legislature
Tampa Bay Times – Steve Bousquet | Published: 1/5/2016
In a year that was defined by dysfunction at the Florida Capitol, the House violated the state constitution by shutting its doors prematurely. Senators later admitted they defied the will of the people by drawing districts to save their own careers at the expense of fair districts that the constitution demands. Sharply divided over whether to expand health care, lawmakers nearly failed to execute their one prescribed duty, passing a budget. Three special sessions later, as unresolved legal skirmishes over redistricting still reverberated in the courts, lawmakers were vilified as arrogant and out of touch, and some said they deserved it. Lawmakers, lobbyists, and observers see systemic problems that are bad for democracy.
Kentucky – Prosecutor Urges Vigilance against Legislative Corruption
Fresno Bee – Bruce Schreiner (Associated Press) | Published: 1/6/2016
Preet Bharara, the U.S. attorney in Manhattan who recently secured the convictions of two top New York lawmakers, said the blame for corruption lies not only with bad actors but also with the “good people” who do not try to stop it. Bharara’s speech at the Kentucky General Assembly’s annual ethics training was his first before a full state Legislature. It came at the request of Kentucky officials. During an address that lasted about 45 minutes, Bharara drew occasional laughter, nodding approval, and gasps of disbelief, particularly when he quoted wiretapped phone conversations and other evidence from recent public corruption trials.
Maine – Clinton Donors Use Maine Democrats to Skirt Campaign Cash Limits
Ellsworth American – Naomi Schalit (Maine Center for Public Interest Reporting) | Published: 1/7/2016
Fourteen out-of-state donors gave $93,552 to the Maine Democratic Party since mid-September 2015. But all the contributions have not stayed in Maine, or any of the other state Democratic parties to which Hillary Victory Fund donations have been funneled. FEC reports show two transfers totaling $39,000 from the Hillary Victory Fund to the Maine Democratic Party each sat for less than 48 hours with the party before the exact same amounts were transferred to the Democratic National Committee (DNC). While individual contributions to the state and national parties are capped, transfers between state and national committees are unlimited. That means that, effectively, donors can skirt contribution limits to the DNC or state parties by giving through joint fundraising committees like the Hillary Victory Fund.
Michigan – Gov. Rick Snyder Signs Campaign Finance Bill Locals Say Amounts to a ‘Gag Order’
MLive.com – Emily Lawler | Published: 1/6/2016
Michigan Gov. Rick Snyder signed a bill that prohibits public money or resources from being used to disseminate information about local ballot measures through television and radio ads, mass mailings, or “robo-calls” in the 60 days before an election. Local officials said the law will keep voters in the dark about important issues because they no longer will receive unbiased educational materials in the two months prior to an election. Some Republicans who voted for the legislation said they did not realize its ramifications. Senate Bill 571 also bars companies from deducting union PAC contributions from employees’ paychecks while allowing deductions for corporate PACs, and requires political and independent committees to file annual reports, among other provisions.
Missouri – Bill Requires Reporting Sex between Lawmakers and Lobbyists on Ethics Forms
Columbia Tribune – Rudi Keller | Published: 1/6/2016
Lobbyists who have sex with a state lawmaker or their staff members would have to disclose it to the Missouri Ethics Commission under a new bill. House Bill 2059 defines sex between lobbyists and legislators as a gift. As such, sexual relations would have to be included on monthly lobbyist gift disclosure forms. The proposal excludes sex in marriage or a relationship that began before either party’s registration as a lobbyist, election to the Legislature, or employment on a legislative staff.
New Jersey – AG: Former Birdsall exec McFadden pleads guilty to misconduct
PolitickerNJ; Staff – | Published: 1/6/2016
Scott McFadden, former chief administrative officer of Birdsall Services Group, pleaded guilty to corporate misconduct in the criminal “pay-to-play” case. Under terms of a plea bargain, the state will recommend a sentence of up to 364 days in jail. McFadden also will be required to forfeit $30,000 to the state. The amount represents political contributions he made on behalf of Birdsall that were later reimbursed to him by the firm. The company pleaded guilty in 2013 to money laundering and making false representations for government contracts and was fined $1 million. The company was essentially crippled when the state froze its assets in the wake of the indictment, forcing Birdsall to file for bankruptcy. The company and its executives were accused of masking corporate political contributions to campaigns and political organizations that otherwise would disqualify it from receiving public contracts.
New York – Albany’s Businessman-Legislators Scoff at a Call to Make Lawmaking Full-Time
New York Times – Vivian Yee | Published: 1/5/2016
The list of lawyers, insurers, and full-time politicians in the New York Legislature is long, and outside income, as the money earned from non-legislative work is known, is at the crux of the corruption scandal that toppled the former speaker of the Assembly in November. Reformers say to clean up Albany, outside income must be capped or done away with. Some have gone even further, suggesting the Legislature, a part-time institution that pays its members $79,500 a year, should become full time with a commensurate salary. But legislators see no conflict between their business activities and lawmaking, and their contempt for Albany makes a full-time Legislature seem nonsensical.
New York – Setting Precedent, Conflict of Interest Board Settle with Mark-Viverito
Capital New York – Gloria Pazmino | Published: 1/6/2016
New York City Council Speaker Melissa Mark-Viverito will pay a $7,000 fine for breaking laws on taking gifts from lobbyists under a settlement with the Conflicts of Interest Board. Mark-Viverito admitted she ran afoul of the rules by taking free help from Scott Levenson and his consulting firm the Advance Group when she was running for speaker two years ago. Levenson, a registered lobbyist, and two staffers spent months working on Mark-Viverito’s bid for the top job, attending “kitchen cabinet” meetings to prepare her for debates with other speaker candidates and networking events. They also redesigned a flyer for a reception hosted in her honor and spent $1,796.44 to have 3,000 copies of it printed. Mark-Viverito was never billed for the work. Rules bar public officials from taking gifts worth more than $50 from people who do business with the city. And lobbyists are barred from giving any gifts to politicians.
Oregon – Uber Fined $2,000 for Violating Portland Lobbying Rules
Portland Oregonian – Brad Schmidt | Published: 1/5/2016
Portland City Auditor Mary Hull Caballero fined the Uber ride-hailing service $2,000 for violating lobbying regulations by not disclosing its ties to political consultant Mark Wiener. The city auditor’s office had sent warning letters to Mayor Charlie Hales and city Commissioner Steve Novick for meeting with Wiener and Uber officials without disclosing the contact, as required by the law. The meeting took place at Wiener’s home as the city council was considering whether to allow such companies to operate in Portland. Hull Caballero issued the maximum fine because she found Uber showed a pattern of noncompliance, noncooperation, and incomplete disclosures.
Pennsylvania – Pennsylvania Legislature Aims at Lobbying Overhaul; Reaction Mixed
Pittsburgh Post-Gazette – Kate Giammarise and Chris Potter | Published: 1/4/2016
As proposed by five Senate Republicans in Pennsylvania, a “Lobbyist Reform Package” includes six measures, among them: stricter reporting of gifts to state officials, increasing fines on lobbyists who violate such requirements, and requiring state officials to disclose when a spouse or other family member is a lobbyist. Another proposal would prohibit lobbyists from being paid to work on political campaigns or having financial ties to a consultant who does. Even some lobbyists say an overhaul is needed. But several insiders say elements of the package appear to be targeted at one firm, Long Nyquist and Associates, and two of its clients: United Food and Commercial Workers Local 1776, which represents state store workers, and the Pennsylvania State Education Association.
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.
December 23, 2015 •
News You Can Use Digest – December 23, 2015
National: ‘Dark Money’ Biggest Campaign Finance Challenge Facing States Denver Post – Geoff Mullvihill (Associated Press) | Published: 12/21/2015 With the presidency at stake in 2016 – as well as a dozen gubernatorial races, 34 U.S. Senate contests, all seats in […]
National:
‘Dark Money’ Biggest Campaign Finance Challenge Facing States
Denver Post – Geoff Mullvihill (Associated Press) | Published: 12/21/2015
With the presidency at stake in 2016 – as well as a dozen gubernatorial races, 34 U.S. Senate contests, all seats in the U.S. House, and scores of mayoral races, state legislative seats, and ballot initiatives – dark-money spending is expected to grow, and handling it has become the biggest campaign finance challenge for states nationwide. Some Legislatures are trying to collect and publish the sources of these donations, but most states allow independent groups to spend unlimited cash on political ads with little transparency. At least one state, Wisconsin, is moving away from disclosure: Gov. Scott Walker signed laws that blur the lines between the activity of candidate campaigns and groups that in almost all other states are supposed to act independently.
Sanders Data Controversy Spotlights Powerful Gatekeeper
Politico – Nancy Scola | Published: 12/20/2015
While Bernie Sanders may have calmed a controversy by apologizing to Hillary Clinton for his campaign’s viewing and downloading of her voter data information, the extent of the damage done to both campaigns is not yet clear. If nothing else, it has reminded Democrats of the risks of leaning so heavily on one private company to provide its technology infrastructure. At the heart of the matter is a firm that functions as the digital plumbing of the Democratic Party: NGP VAN. Democrats are nearly wholly dependent on it, which is why the breach and the Sanders campaign’s subsequent cutoff from the system is so rattling the party.
Trump Played a Clever Trick When He Called Clinton’s Bathroom Visit ‘Disgusting’
Washington Post – Zachary Goldfarb | Published: 12/22/2015
Donald Trump made another polarizing comment when he said it was “too disgusting” to talk about Hillary Clinton’s use of the bathroom during the last Democratic debate and she had got “schlonged” by Barack Obama when she lost to him in the 2008 Democratic primary. Trump was surely talking off-the-cuff in his usual style, and the comments were criticized as offensive and sexist, but it was another example of his mastery in exploiting the psychological biases of conservatives who see much to dislike in today’s society and express support for Trump in the polls. In fact, academic research has shown conservatives have a particular revulsion to “disgusting” images. The research – still debated – suggests psychological and even biological traits divide people politically. These are attributes that may help explain why Trump has been so popular among a segment of the electorate, confounding political and media elites.
Federal:
As TV Ad Rates Soar, ‘Super PACs’ Pivot to Core Campaign Work
New York Times – Nick Corasaniti and Matt Flegenheimer | Published: 12/22/2015
Soaring advertising costs in early primary states are compelling major super PACs to realign their tactics, de-emphasizing the costly broadcast television buys that had been their main role in past presidential campaigns in favor of the kind of nuts-and-bolts work that candidates used to handle themselves. They are overseeing extensive field operations, data-collection programs, digital advertising, email lists, opposition research, and voter registration efforts. No one yet knows whether field and data efforts spearheaded by outside groups will be as effective as they are in the hands of a candidate.
Hospitality and Gambling Interests Delay Closing of Billion-Dollar Tax Loophole
New York Times – Eric Lipton and Liz Moyer | Published: 12/20/2015
As congressional leaders were hastily braiding together a tax and spending bill of more than 2,000 pages, lobbyists swooped in to add 54 words that temporarily preserved a loophole sought by the hotel, restaurant, and gambling industries, along with billionaire Wall Street investors, that allowed them to put real estate in trusts and avoid taxes. They won support from Senate Minority leader Harry Reid, who responded to appeals from executives of casino companies, politically powerful players and huge employers in his home state. And the lobbyists even helped draft the crucial language. The small changes, and the enormous windfall they generated, show the power of connected corporate lobbyists to alter a huge bill that is being put together with little time for lawmakers to consider. Throughout the legislation, there were thousands of other add-ons.
How America’s Dying White Supremacist Movement Is Seizing on Donald Trump’s Appeal
Washington Post – Peter Holley and Sarah Larimer | Published: 12/21/2015
For large numbers of Americans, Donald Trump’s blunt rhetoric surrounding immigration, minority groups, and crime may sound like finely tuned retrograde vitriol. But for a growing number of white nationalists flocking to the campaign’s circus-like tent, the billionaire sounds familiar, like a man fluent in the native tongue of disaffected whites. It is a language they never thought they would hear a mainstream politician in either party use in public. And they are desperately hoping Trump’s rise from reality-show figure to Republican front-runner may be the beginning of something that transcends the campaign trail.
New FEC Chairman Aims to Calm Agency at War with Itself
Center for Public Integrity – Dave Levinthal | Published: 12/21/2015
Matthew Petersen was appointed FEC chairperson for 2016. The Republican Petersen says his tenure at the agency’s helm will prove decidedly different than that of Democrat Ann Ravel, the current chair who has used her office’s meager power – a bully pulpit, mainly – to its maximum. Personal and ideological rifts have meant commissioners have largely been unwilling to tackle the nation’s thorniest election law issues this year, such as the degree to which super PACs may work with the political candidates they support. Even if the FEC in 2016 is kinder and gentler, reform activists worry it will be no more functional, and possibly less.
From the States and Municipalities:
California – Critics Decry Contributions to Councilman Englander from Taser Execs Seeking LAPD Camera Contract
Los Angeles Times – David Zahniser | Published: 12/21/2015
As voters went to the polls in 2011 to crack down on what some referred to as “pay-to-play” practices at Los Angeles City Hall, passing a measure to limit the political influence of companies that seek government business. Measure H prohibits firms seeking lucrative city contracts from making campaign contributions to the politicians who have final say over those agreements. But that law may prove to be toothless in the case of Taser International, the company currently up for a $31.2-million contract to provide thousands of body cameras to the Los Angeles Police Department. Last year, a dozen donors affiliated with Taser, half of them company executives, put $8,400 into the re-election bid of Councilperson Mitch Englander, who heads the council’s Public Safety Committee, which recently reviewed the effort to buy 6,140 cameras and 4,400 Tasers. Englander says the campaign money is not covered by the ballot measure’s restrictions.
Missouri – Andrew Blunt’s Lobbying Work Faces Scrutiny as He Manages Father’s Re-Election Bid
Springfield News-Leader – Deirdre Shesgreen (USA Today) | Published: 12/18/2015
In the past nine months, lobbyist Andy Blunt has added seven new clients to his already packed roster, including the University of Missouri, which is paying him $10,000 a month, and the Missouri Cable Telecommunications Association, which hired him to serve as its executive director. In all, Blunt now has 36 clients, according to a review of Missouri Ethics Commission filings. Blunt’s allies say his long client list is a product of his hard work and political savvy. The 39-year-old Springfield native says he never lobbies his father, U.S. Sen. Roy Blunt, or any other federal official – establishing a “bright line” between his clients’ priorities in Jefferson City and his father’s political pull in Washington. But critics say Andy Blunt has used his last name and family connections to build a lobbying empire. And they argue his dual roles as a Missouri lobbyist and the senator’s campaign manager are rife with possible conflicts-of-interest.
Missouri – Missouri Legislative Staffers Earn Big Money as Political Consultants
Kansas City Star – Jason Hancock | Published: 12/20/2015
Statehouse staff members doing campaign work has long been a way of life at the Missouri Capitol. It is legal, as long as political work is not done on taxpayer time. Many see no harm in the practice, since it typically involves low-level legislative aides. Senior staff, who earn much bigger checks from campaigns, say they go to great strides to keep the two worlds separate. To critics, the scenario represents a potential conflict-of-interest, with the integrity of the legislative process compromised when staff members who earn taxpayer-funded salaries are also getting paid by outside interests with a stake in policy outcomes. Since most staff are not mandated to file the same sort of financial disclosures required of lawmakers, the flow of money can be difficult to track.
New Mexico – Can New Mexico Break Its Cycle of Corruption?
Governing – Alan Greenblatt | Published: 12/21/2015
The recent resignation, conviction, and incarceration of former Secretary of State Dianna Duran for embezzlement and money laundering has already prompted calls for major changes to New Mexico’s ethics and campaign finance laws. But watchdogs are skeptical that change will come. That is because for one, the Legislature is scheduled to meet for only 30 days in 2016. And although House Democrats introduced an ethics package, it is not certain how much momentum it will get, partially because many advocates worry the public has already grown too skeptical to think it is worthwhile to demand systemic change.
New Mexico – SOS Updates Guidelines for New Mexico Lobbyists
New Mexico In Depth – Sandra Fish | Published: 12/22/2015
The New Mexico secretary of state’s office published an updated set of guidelines for lobbyists. New Mexico in Depth reviewed lobbyists’ campaign contributions between 2013 and 2015. It noted it often was unclear if the lobbyist or an employer made donations reported by lobbyists. KOB-TV ran a series of stories about inconsistencies in campaign accounts, most of which occurred because of lax lobbyist reporting. The online reporting system is being updated to allow lobbyists to include the employer who makes a contribution. Lobbyists are asked to avoid reporting campaign donations cumulatively, instead listing individual contributions so they can be more easily compared to candidate reports. The rules also clarify that cumulative reporting of spending on lawmakers for meals and drinks of less than $75 per person should be more detailed than a single entry of all expenses for “various legislators.”
New York – Albany Trials Exposed the Power of a Real Estate Firm
New York Times – William Rashbaum | Published: 12/18/2015
One man who was a key player in the corruption cases against former New York lawmakers Dean Skelos and Sheldon Silver never appeared in the courtroom: Leonard Litwin, the 101-year-old owner of Glenwood Management, an influential developer that is among the state’s most prodigious political donors. The two trials revealed how entwined the interests of Glenwood and other developers are with the business of the state. Testimony, documents, emails, and other evidence provided the most detailed look to date at the ways in which Glenwood and others worked the levers of power to marshal tens of millions of dollars in campaign contributions through a maze of limited liability companies, trade associations, and political groups.
Pennsylvania – Scandal’s Web Trips Pennsylvania Attorney General Kathleen Kane
New York Times – Michael Wines | Published: 12/18/2015
By themselves, the emails were arresting enough: videos, photographs, cartoons, and jokes, some depicting sex acts; others mocking or demeaning blacks, gays, Muslims, and even the poor and uneducated. But just as disturbing is where they were found: on Pennsylvania government computers, in email accounts whose owners included some of the state’s most powerful figures. Since Kathleen Kane, Pennsylvania’s attorney general, released the first of the messages last year, a cabinet officer and a state Supreme Court justice have resigned, another justice is clinging to his job, and scores more have been censured or fired. It is the sort of scandal that an ambitious politician could easily ride to public acclaim and higher office. But for Kane, the email scandal has become a last-ditch weapon in a struggle to keep her job, and perhaps her freedom.
Texas – Austin Officials to Create New Lobbying Registration, Reporting Rules
Austin American-Statesman – Lilly Rockwell | Published: 12/17/2015
After easing concerns from the city’s development-oriented industries, the Austin City Council approved a proposal to strengthen lobbying registration requirements. The proposal would require more people engaged in advocacy at City Hall to register, and it bolsters the city’s ability to enforce its lobbying laws. The council’s vote directed the city manager to craft this ordinance, which will return to the council for final approval next year.
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.
December 18, 2015 •
News You Can Use Digest – December 18, 2015
National: State Integrity Investigation Brings Calls for Reform as Legislative Sessions Approach Center for Public Integrity – Nicholas Kusnetz | Published: 12/16/2015 The State Integrity Investigation is yielding calls for change from lawmakers, good-government advocates, and editorial boards across the country. […]
National:
State Integrity Investigation Brings Calls for Reform as Legislative Sessions Approach
Center for Public Integrity – Nicholas Kusnetz | Published: 12/16/2015
The State Integrity Investigation is yielding calls for change from lawmakers, good-government advocates, and editorial boards across the country. The investigation, published in November, is a data-driven ranking and assessment of each state’s transparency and anti-corruption measures conducted by the Center for Public Integrity and Global Integrity. No state earned better than a “C” grade. In several states, publication of poor grades coincided with ethics scandals that have prompted a growing number of political leaders to call for a transformation in how business is done in state capitals.
Why State Legislatures Are Still Pretty White
Governing – Teresa Wiltz | Published: 12/9/2015
The nation’s growing diversity is not reflected in state Legislatures. Nationwide, African-Americans, who make up 13 percent of the U.S. population, account for nine percent of state lawmakers. Latinos, who are 17 percent of the population, only account for five percent of legislators. Asian-Americans account for five percent of the population but only one percent of lawmakers. Research shows in local elections, voters tend to vote for candidates who look like them. That is a problem when a large proportion of minority voters are lumped together in a handful of districts. Such clustering increases the chances of there being at least a few minority lawmakers, but makes it less likely there will be very many of them. Another factor is few first- and second-generation immigrants can afford to get by on a part-time legislator’s salary, or have the kind of careers that will afford them the flexibility to serve in office.
Federal:
E.P.A. Broke Law with Social Media Push for Water Rule, Auditor Finds
New York Times – Eric Lipton and Michael Shea | Published: 12/14/2015
Congressional auditors say the Environmental Protection Agency (EPA) broke the law on multiple occasions with “covert propaganda” in support of a controversial regulation that gives the agency power over smaller streams of water. The Government Accountability Office (GAO) said a pair of social media campaigns by the EPA in support of its “waters of the United States” rule broke laws that prohibit federal agencies from promoting or lobbying for their own actions. GAO faulted the EPA for using Thunderclap, a social media amplification tool, to recruit hundreds of Twitter users to tweet in support of the rule. It also said the EPA broke the law with a blog post that linked to two environmental groups’ pages urging readers to contact members of Congress to oppose legislation.
Spending Bill Bars IRS and Others from Forcing Political Disclosure
USA Today – Fredreka Schouten | Published: 12/16/2015
The omnibus spending bill passed by Congress would bar the IRS from completing regulations to define and potentially crack down on the political activities of nonprofit groups. The bill also would prohibit the Securities and Exchange Commission from trying to force public companies to disclose their political activities to shareholders and the public. If the spending measure becomes law, any new disclosure rules from either the IRS or federal securities regulators probably could not be completed before the end of President Obama’s term in office. As a practical matter, that appears to bar any new agency rules from taking effect before either the 2016 presidential election or the 2018 midterm elections.
From the States and Municipalities:
California – San Jose Council Votes to Tighten Lobbying Rules
San Jose Mercury News – Ramona Giwargis | Published: 12/15/2015
The San Jose City Council voted to approve a host of changes to strengthen the lobbying ordinance. San Jose nearly a decade ago adopted transparency laws amid public scrutiny over costly backroom deals at City Hall. The rules required lobbyists to register with the city, pay fees, and file quarterly reports showing who they are meeting with and why. Another policy required elected officials to publish their calendars online to show how they spend their time. But a review found hundreds of contacts reported by lobbyists did not show up on the politicians’ calendars. Mayor Sam Liccardo recommended that lobbyists file online weekly reports and specify whether an interaction with an elected official is in-person, by phone, or email.
Florida – Broward Commission Rewrites its Ethics Code, Allows $5 Gifts
South Florida Sun Sentinel – Brittany Wallman | Published: 12/9/2015
Broward County commissioners loosening a zero-tolerance gift ban to allow a five-dollar limit. The no gift rule had been criticized by city and county officials as too strict, a rule that kept them from accepting a free bottle of water at an event. Under the changes, gifts from lobbyists or vendors of non-alcoholic beverages are allowed. And gifts of any type from those sources are legal, if they are not worth more than five dollars. In addition, loopholes were added to allow elected officials to accept gifts given to express sympathy, offers of free training, and tickets to charitable events, if the official pays for any meal served there.
Missouri – How This Missouri Mega-Donor Is Making His Pet Projects Part of the 2016 Elections
Huffington Post – Paul Blumenthal | Published: 12/16/2015
Taking advantage of a campaign finance system that greatly empowers wealth, Rex Sinquefield has been able to become the most dominant single political force in the state. Since 2008, he has contributed at least $35 million to candidates, political parties, PACs, and ballot initiative campaigns. The contributions have helped to create an unprecedented Republican Party supermajority in the Legislature. Sinquefield’s donations to ballot initiative campaigns have succeeded in putting significant restrictions on taxes at the local level. But with Democrat Jay Nixon in control of the governor’s mansion, Sinquefield’s main agenda items of eliminating the state’s income tax, expanding charter schools and private school vouchers, and crushing labor union power by passing so-called right-to-work legislation have remained just out of reach.
Nevada – Sheldon Adelson Said to Be Buyer of Las Vegas Review-Journal
New York Times – Ravi Somaiya and Sydney Ember | Published: 12/16/2015
Sheldon Adelson, a billionaire casino magnate and Republican power broker, is behind the secret purchase of The Las Vegas Review-Journal, according to the newspaper. Speculation has mounted for days that Adelson was the primary backer of News + Media Capital Group, a secret group that acquired The Review-Journal and several local papers for $140 million. In the last presidential campaign, Adelson and his wife spent about $100 million, and the couple are expected to generously help whomever they endorse for president in 2016. Speculation turned to the political influence that Adelson could exert in his home state, a major presidential battleground in November 2016, and host to early Democratic and Republican nominating contests as well as a highly competitive U.S. Senate race.
New Mexico – Former New Mexico Secretary of State Prepares for Jail
Minneapolis Star Tribune – Morgan Lee (Associated Press) | Published: 12/16/2015
Former New Mexico Secretary of State Dianna Duran greed to a 30-day jail sentence after pleading guilty to charges involving the siphoning of money from her election account to fuel a gambling addiction. Under a plea agreement, Duran had the choice to withdraw her pleas but did not. She must pay a $14,000 fine, make restitution of nearly $14,000 to campaign donors, serve five years of probation, and perform 2,000 hours of community service. The sentence also involves in-person apologies to campaign donors and appearances before school children across the state.
New York – Cash Flows Freely in Albany: Laws lax on political fundraising
Poughkeepsie Journal – Jon Campbell | Published: 12/15/2015
Critics contend New York’s wealthy political donors pour money into the campaign accounts of high-powered government officials and are rewarded with access and influence in Albany. As part of a yearlong series, Gannett’s Albany Bureau has explored the intersection of politics and money in New York, examining its impact on public policy, from the $285.5 million spent on education lobbying since 2006 to the rise of public-relations firms working on elections and advocacy campaigns. But it is the state’s laws and limits on political fundraising that critics have long characterized as lax and insufficient. And reformers are hoping the back-to-back convictions of former Dean Skelos and Sheldon Silver may finally force Albany to act.
New York – Dean Skelos, Ex-New York Senate Leader, and His Son Are Convicted of Corruption
New York Times – William Rashbaum and Susanne Craig | Published: 12/11/2015
Former New York Sen. Dean Skelos and his son were convicted of charges they used the father’s position as majority leader to pressure companies to provide Adam Skelos with roughly $300,000 via consulting work, a no-show job, and a direct payment of $20,000. Dean Skelos had been one of the most powerful men in state government until his arrest this year, and his conviction – along with that of Assembly Speaker Sheldon Silver – will have repercussions beyond the courtroom. As in Silver’s case, the verdict resulted in Dean Skelos’s expulsion from the Legislature, where both men had served for more than three decades.
South Carolina – S.C. Attorney General’s Office Weighs in on Ethics Law, Possible Window into Prosecutors’ Public Corruption Probe
Charleston Post & Courier – David Slade, Doug Pardue, and Tony Bartelme | Published: 12/16/2015
Amid an ongoing public corruption probe, South Carolina Attorney General Alan Wilson’s office issued an opinion that may hinder prosecutors’ efforts to crack down on ethics violators. The document argued courts would likely rule it is legal under the state’s ethics laws for lawmakers to steer lucrative campaign work to their own companies or those run by family members. The nonbinding opinion delves into the often ethical gray areas of how lawmakers spend campaign money and wield influence, a system that dispensed nearly $100 million since 2009, according to a recent investigation.
Utah – SLC Council Slashes Campaign Contribution Limits
Salt Lake Tribune – Christopher Smart | Published: 12/9/2015
The Salt Lake City Council cut the maximum contribution to a mayoral candidate from $7,500 to $3,500. It also reduced maximum donations to council candidates from $1,500 to $750. Those limits apply to individuals, corporations, nonprofits, and unions. The caps apply only to Salt Lake City. Utah state law contains no limits on campaign contributions.
Washington – Ethics Board Looks at Lawmakers’ Meal Limit
Seattle Times – Joseph O’Sullivan | Published: 12/3/2015
The Legislative Ethics Board (LEB) discussed how to proceed on the trickier elements of a rule that imposed a hard limit on how many free meals that state lawmakers may take from lobbyists. LEB members approved a motion stating there is no special exemption for industry groups such as the Washington Bankers Association, which may feed lawmakers attending functions such as a luncheon or forum. But that motion also stressed such forums likely fall within an existing exemption for lawmakers, and so probably would not count as one of the 12 meals. The rules and discussion follow a review by The Associated Press that found the state’s most active lobbyists had lavished hundreds of meals upon lawmakers, estimated at more than $65,000 in value, in the first four months of 2013.
Wisconsin – Scott Walker Signs Bills on Splitting GAB, Campaign Finance
Milwaukee Journal Sentinel – Patrick Marley and Jason Stein | Published: 12/16/2015
Gov. Scott Walker signed into law a bill that rewrites Wisconsin’s campaign finance statutes. He also approved legislation that eliminates the state Government Accountability Board and hands its duties over to two new agencies, the Elections Commission and the Ethics Commission. Those new bodies will take over July 1. The campaign finance changes include doubling the limit for individual contributions and eliminating a requirement that donors giving more than $100 identify their employer. It also allows, for the first time, corporate donations to political parties and legislative campaign committees.
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.
December 4, 2015 •
News You Can Use Digest – December 4, 2015
National: Where do Ads Shaping State Politics Come From? Increasingly, These Outside Players Time – Ashley Balcerzak (Center for Public Integrity) | Published: 12/2/2015 Groups independent from candidates or parties are taking a larger role in shaping political campaigns. Thirty-three outside […]
National:
Where do Ads Shaping State Politics Come From? Increasingly, These Outside Players
Time – Ashley Balcerzak (Center for Public Integrity) | Published: 12/2/2015
Groups independent from candidates or parties are taking a larger role in shaping political campaigns. Thirty-three outside groups spent more than $32 million on their own political ads this year, accounting for more than one-third of the estimated $86 million in broadcast television ad spending in seven states with major races. That represents more than one in four political spots aired, compared with less than one in five ads in both 2011 when the same states had comparable races and in 2014 when major races occurred in 45 states. “People who want to make change in policy are looking increasingly at state and local politics, and there is an increased capacity of these national organizations to raise money and distribute it,” said Campaign Finance Institute Executive Director Michael Malbin.
Federal:
A Mole in the Koch Machine?
The Hill – Jonathan Swan | Published: 12/2/2015
Hillary Clinton’s well-financed ally David Brock has a team that claims to be coordinating with moles inside the corporate and political empire of the billionaire brothers Charles and David Koch. The anti-Koch unit within the Bridge Project told The Hill it has covert channels feeding information from within the private world of the Kochs, the most influential campaign donors in conservative politics. The claim is a new indication the left may be countering what Politico recently reported was a Koch operation that “conducts surveillance and intelligence gathering on its liberal opponents,” partly with help from a former CIA analyst.
Campaigns Turn to a Cheaper Medium to Get Voters’ Ears: Radio
New York Times – Nick Corasaniti | Published: 12/3/2015
Radio listeners, stuck in their cars for long stretches, may be the closest thing to a captive audience for political commercials. And in Iowa and New Hampshire, at least, they are already being pummeled with appeals, both positive and negative, by the presidential contenders and their allies. Television advertising is still king, both in terms of total spending and number of times that ads run, and will continue to eat up the bulk of campaign budgets. But if radio spending is still minuscule by comparison, that is partly because it is so inexpensive.
GOP Rider Would Boost Party Spending
Politico – Kenneth Vogel and Seung Min Kim | Published: 11/25/2015
U.S. Senate Republicans plan to insert a provision into a government-funding bill that would expand the amount of money that political parties could spend on candidates. The provision, which sources say is one of a few campaign finance related riders being discussed in closed-door negotiations over a $1.15 trillion omnibus spending package, would eliminate caps on the amount of cash that parties may spend in coordination with their candidates. Watchdogs argue it would allow wealthy donors to exercise even more influence with members of Congress. And they cried foul over the possibility that the provision could be slipped into the spending bill that Congress is working to pass before a December 11 deadline to avoid a government shutdown.
From the States and Municipalities:
California – California Campaign Law’s Loopholes Allow Donors to Skirt Limits
San Jose Mercury News; Associated Press – | Published: 11/30/2015
Two days after California’s elected tax board gave SpaceX exemptions worth millions of dollars last year, the rocket company donated $7,500, at the request of board President Jerome Horton, to a nonprofit group founded by his wife. SpaceX made the contribution as a sponsor of a public conference headlined by Horton as he was running for re-election. Such donations are among the ways that businesses and others with matters before the Board of Equalization have benefited its members despite a law to prevent conflicts-of-interest. Other ways to bypass the contribution caps include giving through PACs, donating just below the legal limit, and contributing to board members’ outside projects.
California – Fast Times at Rancho Santiago: Official’s passion for golf pays dividends for contractors
Voice of OC – Adam Elmahrek | Published: 12/2/2015
Peter Hardash’s job is vice chancellor of business operations for the Rancho Santiago Community College District, which makes him the gatekeeper of millions of taxpayer dollars that end up being spent on construction-related contracts. But his passion is golf. Luckily for Hardash, his passion and his job often intersect. Companies that do business with the district have lavished nearly $3,500 in gifts, primarily golf-related, on Hardash over a span of two years. Meanwhile, they have reaped almost $12 million in contracts. Oftentimes Hardash has submitted contracts to the district’s Board of Trustees within days of the vendors buying him rounds of golf, or, in one instance, just a week after offering him tickets to the Toshiba Classic golf tournament.
California – S.F. Ethics Commission Hires Director with Long Experience in L.A.
San Francisco Chronicle – Lizzie Johnson and Heather Knight | Published: 11/24/2015
LeeAnn Pelham, who finished a 10-year term as head of the Los Angeles Ethics Commission in 2011, will start as executive director of the San Francisco Ethics Commission in January, replacing John St. Croix. Pelham most recently served as director of ethics and corporate governance for the Santa Clara Valley Water District. St. Croix held the post for 11 years and was criticized by some for being slow to act and going too easy on those accused of ethics breaches. Critics of St. Croix are hopeful Pelham will reinvigorate the commission and push to strengthen ethics rules.
Hawaii – High Court Rejects Challenge to Hawaii Campaign Finance Laws
WRAL; Associated Press – | Published: 11/29/2015
The Hawaii Supreme Court rejected an appeal from a company that spent about $9,000 on newspaper advertisements during the 2010 election cycle. The ads from A-1 A-Lectrician, Inc. were critical of Blake Oshiro, a candidate for the state Legislature. Hawaii law requires any entity that spends more than $1,000 to influence elections to register as a PAC, triggering reporting and disclosure requirements. The company argues the law is too burdensome and should apply only to entities whose primary purpose is political activity.
Illinois – A Wealthy Governor and His Friends Are Remaking Illinois
New York Times – Nicholas Confessore | Published: 11/29/2015
Kenneth Griffin, the billionaire founder of one of the world’s largest hedge funds, and a small group of rich supporters from all over the country have poured tens of millions of dollars into Illinois, a concentration of political money without precedent in the state’s history. Their wealth has shifted the balance of power; they helped elect Bruce Rauner as governor last year. The rich families remaking Illinois are among a small group around the country who have channeled their wealth into political power, taking advantage of regulatory, legal, and cultural shifts that have carved new paths for infusing money into campaigns.
Kansas – Wichita City Council Votes to Change Local Campaign Finance Law, Increase Salaries
Wichita Eagle – Kelsey Ryan | Published: 12/1/2015
The Wichita City Council voted to allow campaign contributions from corporations, unions, and PACs in local elections. The majority said they did not think the move would greatly affect elections, particularly since the contributions would be limited to $500, like individual donations. But those against the measure cited concerns about opening up elections to party-affiliated groups like PACs. They said they were concerned about transparency since PACs do not have to report their individual donors.
Montana
New Campaign Reform Rules Filed with State
Great Falls Tribune – Phil Drake | Published: 11/24/2015
Montana Commissioner of Political Practices Jonathan Motl adopted new campaign finance rules that he says will improve the transparency and reporting of money spent to influence elections. They will be in effect during the 2016 campaign season. The new rules require candidates and political committees to file their reports electronically, which will make them immediately available online. The rules require candidates to file campaign finance reports at both 35 days and 12 days before elections. The 35-day reporting requirement is new. They also require third-party groups to report spending if their communication mentions a candidate or uses an image of them within 90 days of an election.
Nevada – Appointees to Key Positions in Nevada Remain Little-Known to Taxpayers
Las Vegas Review-Journal – Sean Whaley | Published: 11/30/2015
As a recent nationwide report noted, taxpayers do not know much about members of the Nevada Public Employees Retirement System, the individuals charged with managing the state retirement system for nearly all state and local government employees. The same is true for appointees to other boards and commissions. The appointed members of the Transportation Commission, who recently voted to award a $559 million highway contract, do not have to disclose potential financial conflicts. And members of the state Ethics Commission also are not required to file disclosure statements. The report found 47 states require state-level public officials to file financial disclosure forms, but few require detailed information. While Nevada’s disclosure forms are easily accessible on the secretary of state’s website, there is no budget to check for compliance.
New York – Corruption Trial: Adam Skelos laid out lobbyists’ views of upstate, downstate
Albany Times Union – Chris Bragg | Published: 11/29/2015
Adam Skelos, the son of former Senate Majority Leader Dean Skelos, believed he knew how things got done in Albany: do not hire a New York City lobbyist to influence the Senate Republican majority, which was led by his father until earlier this year. It is friendships, familiarity, and an upstate ZIP code that move the levers of power. The younger Skelos laid out those views of New York’s lobbying industry in a phone call recorded in February, recently disclosed as part of the father and son’s ongoing corruption trial, and his view of how to influence upstate lawmakers. In the call, Adam Skelos singles out one Albany lobbyist, Nick Barrella, managing partner of the Capitol Group, as especially effective in lobbying Senate Republicans. Adam Skelos said that is because Barrella and Dean Skelos have condos near one another in Florida, and their wives are “booze buddies, more or less.”
New York – Sheldon Silver, Ex-New York Assembly Speaker, Is Found Guilty on All Counts
New York Times – Benjamin Weiser and Susanne Craig | Published: 11/30/2015
Former New York Assembly Speaker Sheldon Silver was convicted of charges he traded favors in exchange for about $4 million in bribes and kickbacks disguised as legal fees and lied about it to regulators. The conviction triggers his automatic expulsion from the Legislature. Silver’s trial overlapped with the corruption trial of former Senate Majority Leader Dean Skelos on charges that Skelos badgered companies to give his son more than $300,000 in exchange for his political support. Silver is the fifth state lawmaker to be convicted by federal prosecutors in 2015. Thirty New York lawmakers have left office since 2000 because of criminal charges or allegations of misconduct.
North Carolina – 7 Legislators Failing to Detail Campaign Payments to Themselves
Raleigh News & Observer – Colin Campbell | Published: 11/27/2015
A Raleigh News & Observer review of legislators’ latest campaign reports found most meticulously detail expenses they pay with campaign donations. Meal charges list the date, amount, and the name of the restaurant. Travel expenses usually list where the lawmaker went and why. But those details are missing from seven legislators’ 2015 reports. Instead, the reports show they paid themselves thousands of dollars as reimbursement for “expenses related to holding public office,” a method of reporting that appears to skirt the requirements of campaign-finance law.
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.
November 20, 2015 •
News You Can Use Digest – November 20, 2015
National: Inside the Clinton Donor Network Washington Post – Matea Gold, Tom Hamburger, and Anu Narayanswamy | Published: 11/19/2015 The Washington Post identified donations from roughly 336,000 individuals, corporations, unions, and foreign governments in support of the political or philanthropic endeavors […]
National:
Inside the Clinton Donor Network
Washington Post – Matea Gold, Tom Hamburger, and Anu Narayanswamy | Published: 11/19/2015
The Washington Post identified donations from roughly 336,000 individuals, corporations, unions, and foreign governments in support of the political or philanthropic endeavors of Bill and Hillary Clinton. The investigation found many top patrons supported them in multiple ways, helping finance their political causes, their legal needs, their philanthropy, and their personal bank accounts. The Clintons’ fundraising operation – $3 billion amassed by one couple, working in tandem for more than four decades – has no equal. The donor network is now serving as both a prime asset and liability for Hillary Clinton as she seeks the Democratic presidential nomination.
One Slogan, Many Methods: Black Lives Matter enters politics
New York Times – John Eligon | Published: 11/18/2015
Black Lives Matter began as a hashtag and grew into a protest slogan – after prominent police killings of blacks over the past year – and became an Internet-driven civil rights movement. The phrase is as much a mantra as a particular organization, with the general public lumping numerous groups under the Black Lives Matter banner, even if they are not officially connected. Yet amid the groups’ different approaches has been a swirl of political activity. Local affiliates of the Black Lives Matter organization have disrupted numerous Democratic presidential campaign events, pushing the candidates to support policies to end mass incarceration and police brutality. That organization now has 26 chapters that largely set their own direction. Yet the young and sometimes cacophonous movement is struggling to find its voice, as the activists who fly its banner wade into national politics.
Republican Governors: A winning machine
Politico – Kevin Robillard | Published: 11/18/2015
While Democrats have reshaped the federal government under President Barack Obama, Republicans have methodically taken over state after state around the country, swelling the number of GOP governors from 19 to 31 and enacting conservative priorities from budget cuts to new restrictions on unions and abortion. Behind each of those policy and political victories was the Republican Governors Association (RGA), planning, funding, and executing the GOP’s state-based resurgence. The RGA has avoided congressional Republicans’ problems, especially in hard-to-win blue states, by playing a relentless but “quiet” role in recruiting candidates that fit their states, said former RGA Director Phil Musser.
The Koch Intelligence Agency
Politico – Kenneth Vogel | Published: 11/18/2015
An operation that is part of the Koch brothers’ political network conducts surveillance and intelligence gathering to try to thwart liberal groups and activists, and to identify potential threats to the network. The intelligence team has a staff of 25, including one former CIA analyst. It sends regular emails tracking the canvassing, phone-banking, and voter-registration efforts of labor unions, environmental groups, and their allies. The team utilizes high-tech tactics to track the movements of liberal organizers, including culling geo-data embedded in their social media posts. “We were caught off guard by what the left was doing in 2012, and we’d be foolish to be caught in that position again,” said Marc Short, president of Freedom Partners Chamber of Commerce, the network’s central group.
Federal:
Clinton, Bush Lawyers Square Off in FEC Proxy War
Politico – Isaac Arnsdorf and Theodoric Meyer | Published: 11/11/2015
Requests to relax limits on coordination between candidates and super PACs left the FEC divided recently. The often-deadlocked commission only managed to agree on five of the dozen questions that were raised at a hearing. They were unable to reach a majority decision on whether a potential candidate could form a super PAC before announcing his or her campaign, or whether a potential candidate could share advance plans with a super PAC before jumping into the race. They also could not agree on whether super PACs could film footage of potential candidates with an eye toward using it in ads. Four of the six commissioners did vote to let candidates attend fundraisers with as few as two donors.
From the States and Municipalities:
Arizona – Lobbying Records Only Disclose Recipient for $1 Out of Every $8 Spent
Arizona Center for Investigative Reporting – Justin Price | Published: 11/13/2015
Lobbyists in Arizona are required to report their expenditures in quarterly reports. But loopholes and minimal regulatory oversight leave room for them to spend without reporting who benefited. Lobbying records for 2015 include a beneficiary for one dollar out of every eight dollars spent. A report by the Center for Public Integrity gave Arizona’s lobbying disclosure an “F” grade. Reporting exemptions exist for both large- and small-dollar expenditures and lobbyists face minimal threat of being audited for filing reports incorrectly or incompletely.
California – California Ethics Panel Targets Vague Lobbying Payments
Sacramento Bee – Jeremy White | Published: 11/18/2015
Under current California law, anyone who spends at least $5,000 to sway legislation or administrative rulemaking must file quarterly reports. But much of the spending falls into a nebulous category called “other payments to influence,” a designation that can include the cost of mounting advertising campaigns, paying office overhead, and retaining political consultants. Seeking more clarity, the Fair Political Practices Commission is pushing an amendment that would have lobbyist employers break down expenditures that exceed $2,500 into an array of categories that include paying employees other than lobbyists, advertising, and public affairs work. They also would have to disclose the recipients of the payments.
California – Inside California Lawmakers’ Paid Trips to Maui
Sacramento Bee – Alexei Koseff | Published: 11/18/2015
The California Independent Voter Project’s annual conference has once again arrived, bringing together 21 state lawmakers and dozens of corporate sponsors for five days in Hawaii. This type of travel is nothing new for California legislators, who have been venturing overseas for decades at the expense of business groups, labor unions, foreign governments, and their campaign donors. Yet the Independent Voter Project conference, with its luxurious setting, has become something of a lightning rod for criticisms about the cozy relationship between lawmakers and special interests. “… If the purpose of the trip were to educate lawmakers about the problems of California, they would go to Fresno,” said Jack Pitney, a professor of politics at Claremont McKenna College.
Florida – County Ethics Commission Sues Hialeah Mayor for Trying to Pay $4K Fine with Pennies
Miami Herald – Brenda Medina | Published: 11/18/2015
The Miami-Dade Commission on Ethics and Public Trust sued Hialeah Mayor Carlos Hernandez for trying to pay a $4,000 fine with 28 buckets of pennies and nickels. The commission also doubled the fine imposed on Hernandez, saying he intentionally broke its regulations by sending the 360,000 coins even though he knew the panel accepts only checks.
Illinois – Feds Seize Computers, Files on Chicago Officials from Outgoing Inspector General
Politico – Natasha Korecki | Published: 11/16/2015
The FBI seized documents and computers from legislative Inspector General Faisal Khan’s office on his last day overseeing Chicago elected officials. Kahn said the office was working on several investigations. In the past four years, the inspector general’s office has had a tumultuous relationship with City Hall. While the office had jurisdiction over aldermen and support staff, it could not launch investigations based on anonymous complaints, and required the notification of any subject under investigation. Khan spoke about his disbelief both with the mayor’s office and with the city council over their resistance to oversight. “Thirty aldermen over 40 years have gone to jail. … I would describe to you that the oversight in Chicago is comparable to the Wild West – anything goes,” Kahn said.
Montana – Committee Fails to Block New Campaign Rules
Flathead Beacon – Matt Volz (Associated Press) | Published: 11/17/2015
New rules affecting Montana’s campaign finance law will take effect after a legislative committee failed to delay the changes. The regulations will be adopted by Commissioner of Political Practices Jonathan Motl in the coming days after a final review. They will become effective once they are published by the Montana secretary of state, which will likely happen in February, and will apply to the 2016 primary elections in June. The guidelines will require more reporting by candidates and organizations, tighten restrictions on candidate coordination, and require same-day electronic reporting of contributions.
New Mexico – Acting SOS Plans to Clarify Lobbyist Contributions
New Mexico in Depth – Sandra Fish | Published: 11/18/2015
Acting Secretary of State Mary Quintana intends to clarify rules on how lobbyists report campaign contributions to candidates in New Mexico. Lobbyists often contribute on behalf of their clients. But some list the clients as the donors in their reports and others do not. Some of those listings are also unclear about who the recipient is – a candidate or a candidate’s PAC.
Ohio – Ohio Probes Whether Wright University Violated Lobbying Laws
Washington Times; Associated Press – | Published: 11/19/2015
Ohio Attorney General Mike DeWine is investigating whether Wright State University and its consultant, Ron Wine, violated lobbying laws when the university paid him nearly $2 million without prior approval from the state Controlling Board. State law since 2011 has mandated that public universities get Controlling Board approval for any lobbying contracts that exceed $50,000 in a calendar year. Employees paid to advocate for their clients’ interest are required to register as lobbyists if that part of their job exceeds five percent of their workload for legislative lobbying or 25 percent for executive branch lobbying. Ohio Legislative Inspector General Tony Bledsoe gave the university 15 days to register Wine as a lobbyist or explain why he is not one.
Texas – Travis County Has No Rules for Registering Lobbyists
Austin American-Statesman – Sean Collins Walsh | Published: 11/15/2015
Lobbyists are not required to register with Travis County, and firms do not have to disclose who is being paid to advocate for them. The city of Austin’s and the state of Texas’ lobbying disclosure systems are often criticized for loopholes and poor enforcement, but they still provide a level of transparency that Travis County’s procedures do not address. Advocates for lobbyist registration say it enables the public to monitor who is influencing government decisions and reduces the likelihood that insider deals will go undetected, or at least makes it easier to figure out what happened if a transaction is later scrutinized.
Wisconsin – Assembly GOP Approves Rewritten Campaign Finance Laws, GAB Overhaul
Milwaukee Journal Sentinel – Patrick Marley | Published: 11/16/2015
The Wisconsin Assembly gave final approval to a pair of bills that would alter the flow of money to campaigns and change oversight of ethics laws. Gov. Scott Walker is expected to sign them into law. One bill would replace the Government Accountability Board, which is comprised of retired judges, with two separate panels consisting of partisan appointees. The other bill would make clear that candidates can coordinate political activity with issue advocacy groups that do not have to disclose their donors. It would also double allowable individual campaign contribution limits, do away with a requirement that donors giving more than $100 to campaigns disclose who they work for, and allow corporate contributions to political parties and legislative campaign committees for the first time.
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.
November 13, 2015 •
News You Can Use Digest – November 13, 2015
National: Only Three States Score Higher Than D+ in State Integrity Investigation; 11 Flunk Center for Public Integrity – Nicholas Kusnetz | Published: 11/9/2015 A new report found that in state after state, open records statutes are filled with exemptions, and part-time legislators […]
National:
Only Three States Score Higher Than D+ in State Integrity Investigation; 11 Flunk
Center for Public Integrity – Nicholas Kusnetz | Published: 11/9/2015
A new report found that in state after state, open records statutes are filled with exemptions, and part-time legislators and agency officials engage in conflicts-of-interest and close relationships with lobbyists while regulators struggle to enforce laws. The State Integrity Investigation measured hundreds of variables to compile transparency and accountability grades for all 50 states. The best grade in the nation, which went to Alaska, is just a “C.” Only two others earned better than a “D+”; 11 states received failing grades. Aside from a few exceptions, there has been little progress on these issues since the research was first carried out in 2012.
Federal:
Donald Trump Advertises Rising Value of Free Political Publicity
New York Times – Ashley Parker | Published: 11/9/2015
Thirty-second television commercials were once signs of a confident, well-financed candidacy for the White House. Now they are seen as a last resort of struggling campaigns that have not mastered the art of attracting the free media coverage that has lifted the political fortunes of insurgent campaigns. Donald Trump’s ability to command media attention and reach voters without depleting his campaign funds is just the latest example of the way his campaign has upended the conventional approach candidates have used to communicate with voters. In addition to having done countless interviews, Trump, who recently hosted “Saturday Night Live,” has been effective in using social media to attack his rivals, and many of his controversial quips on Twitter are rebroadcast by traditional news media outlets.
Even as House Speaker, Paul Ryan Sleeps in His Office
New York Times – Jennifer Steinhauer | Published: 11/10/2015
Like scores of other members of Congress, most of them Republican, Speaker Paul Ryan chooses to bed down in a cot in his office every night the House is in session. He chooses this over the speaker’s official palatial suite in the Capitol, which Ryan has pointed out stinks thanks to smoke from its prior inhabitant, John Boehner. For the lawmakers, the choice is fiscal, practical, and political. Many say they find Washington rental prices too high. Others say it allows them to work longer hours. Still others, like Ryan, say Washington is simply not their home. Some groups and other members have criticized the arrangement as essentially taxpayer-subsidized housing.
G.O.P. Fight Now a Battle over What Defines a Conservative
New York Times – Jonathan Martin | Published: 11/11/2015
For months, the Republican presidential race has been animated by the party’s anger about the state of the country and an equally undefined hope that a candidate would emerge who could usher in an era of renewal. But the most recent debate and its aftermath marked an abrupt transition from vague promises about making America “great again,” in Donald Trump’s phrase, to a new season of the campaign shaped more by the policy fissures that are dividing Republicans over what exactly to do about the nation’s problems. It exposed a contentious dispute over what it means to be a conservative and offered a preview of the contours of the battle for the Republican nomination.
From the States and Municipalities:
California – Conflict Concerns Won’t Keep Ethics Panel Out of Race
San Diego Union-Tribune – David Garrick | Published: 11/10/2015
The San Diego Ethics Commission will continue enforcing local campaign laws in the race to succeed City Attorney Jan Goldsmith, denying a candidate request that the commission recuse itself based on a potential conflict-of-interest. Rafael Castellanos asked for the recusal because one of his opponents in the race, Gil Cabrera, was a commission member from 2005 to 2010 and worked as special counsel for the commission in 2012 and 2013. The agency’s general counsel downplayed the potential conflict, noting only one of the commission’s seven members remains from when Cabrera served and only two members were there when he worked as a special counsel.
California – Follow the Money: Shining a light on political nonprofits
Capitol Weekly – John Howard | Published: 11/11/2015
California’s Political Reform Act has been largely untouchable for more than 40 years, but now it may get a rewrite. The catalyst for change comes from a tangled trail of some $15 million in so-called dark money that flowed via nonprofits into the state’s 2012 elections final stages. Ultimately, the spending resulted in a $1 million fine. The proposed changes would create, for the first time, a constitutional right to regulate political money and force disclosure. It would require the disclosure of the source of donations of $10,000 or more to nonprofits, when the money is used for political purposes, make explicit who is paying for political ads, and it double the “revolving door” waiting period to two years. The proposal outlaws lobbyists’ gifts to elected officials, and cuts the maximum value of a gift from a member of the public, now $460 annually, to $200 a year.
California – Lobbyist Meetings Missing from San Jose Council Calendars
San Jose Mercury News – Ramona Giwargis | Published: 11/8/2015
Elected officials in San Jose are falling short when it comes to disclosing meetings with lobbyists. A review found the mayor and every city council member had contacts with lobbyists this year that were not disclosed on the officials’ public calendar. Local law requires lobbyists to file quarterly reports on their contacts with elected officials. The San Jose Mercury News said lobbyists reported 105 more such contacts this year than city officials did. Council members defended themselves by saying the undisclosed contacts were human error, they did not realize they were chatting with a lobbyist, or the contacts were unexpected run-ins or email communications the policy does not require them to report. Watchdogs say the discrepancy undermines the goals of transparency and deceives the public.
Florida – Hialeah Mayor Tries to Pay County’s $4K Ethics Fine in Pennies
Miami Herald – Brenda Medina | Published: 11/6/2015
Hialeah Mayor Carlos Hernandez finally decided pay the $4,000 fine the Miami-Dade County ethics commission imposed earlier this year on his business dealings. Hernandez sent the commission a truck stacked with 28 buckets filled with pennies to cover the fine. But his payment was not accepted. Apparently, the commission accepts only checks. “I paid it with American money, of the United States, and I have the right to do that,” said Hernandez.
New Hampshire – G.O.P. Candidates, Lagging, Rely on New Hampshire to Get Close
New York Times – Jonathan Martin | Published: 11/8/2015
Some Republican candidates are staking their presidential bids on an idea that seems increasingly quaint: that campaigning one on one in this small state can set you on the path to becoming president. It is a notion that is facing a rigorous test this election cycle, as the large Republican field, social media, and televised debates that attract massive audiences have reshaped the race like never before. The outcome in New Hampshire will echo beyond this election and reveal much about how the country chooses presidents, and whether the tradition of direct voting in the first-in-the-nation primary matters anymore. Its possible diminishment is already unsettling residents, who view their role of scrutinizing and winnowing the field of candidates as a solemn duty.
New York – Legislation Introduced to Tighten New York City Campaign Finance Rules
New York Daily News – Erin Durkin | Published: 11/9/2015
A package of bills to tighten New York City’s campaign finance rules was introduced in the city council. One bill would ban candidates from getting matching funds for donations raised by fundraisers who do business with the city. The legislation would also ban all candidates, including those who are not taking matching funds, from accepting contribution from political committees that are not registered with the city. Another bill would restrict contributions from businesses with numerous limited liability companies.
Pennsylvania – Pennsylvania Ethics Officials Crack Down on Lobbyists
Pittsburgh Tribune-Review – Kari Andren | Published: 11/11/2015
The Pennsylvania Ethics Commission is ramping up enforcement against groups that fail to file mandated quarterly expense reports, and the state House has approved a bill to up the ante for non-compliance by lobbyists and the groups they represent by dramatically increasing penalties for not abiding by disclosure rules. Thirty-one groups were cited for failing to file expense reports this year; fines and penalties total about $90,300. In 2014, the commission issued just 15 citations. The House bill would hike the maximum penalty imposed from $50 per day to a tiered system of $50 for the first 10 days, $100 for each of the next 10 days, and $200 for each late day after 20 days.
Texas – Ethics Commission Recommends Controversial Lobbying Ordinance
Austin Monitor – Jack Craver | Published: 11/12/2015
The Ethics Review Commission recommend to the Austin City Council a resolution aimed at overhauling city lobbying rules. A revised draft crafted by a commission working group incorporated some of the concerns expressed by developers. Stuart Sampley, president of the Austin chapter of the American Institute of Architects, said the ordinance unfairly targeted development, design, and architectural professionals and misrepresented their day-to-day interactions with city officials as lobbying. The recommendations from the working group urged city staff to explore a number of potential negative effects of stricter lobbying requirements. Backers of the reform hope the measure will be on the agenda for council at its last meeting of the year on December 17.
Washington – Seattle’s Experiment with Campaign Funding
The Atlantic – Russell Berman | Published: 11/9/2015
Starting in 2017, Seattle residents will be able to contribute to local candidates without spending a dime of their own money. Instead, the government will send each registered voter four $25 vouchers that they can give to candidates of their choice. Candidates can opt out, but those who participate will have to abide by strict limits on spending and on receiving private donations. “The promise of vouchers is turning every single voter in the city into a donor,” said Alan Durning, the executive director of the Sightline Institute, a think tank and advocacy group that pushed for the new program. Critics have said the measure’s design will benefit incumbents and entrenched political organizations who do not need any extra boost.
Wisconsin – Senate GOP Votes to Overhaul Campaign Finance, Revamp Board
Albany Times Union – Todd Richmond (Associated Press) | Published: 11/7/2015
The Wisconsin Senate approved, with changes, a pair of bills altering the state’s campaign finance and election oversight rules. They will now return to the Assembly, which must approve the changes before sending the bills to Gov. Scott Walker. Republicans backing the proposals say they are necessary to bring the state’s statutes in line with court rulings and to protect First Amendment rights to free speech. Democrats argue the bills, along with one limiting the scope of crimes that can be investigated in so-called John Doe probes, would open the door for corruption and expand the influence of money in politics.
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.
November 6, 2015 •
News You Can Use Digest – November 6, 2015
National: Neuropolitics, Where Campaigns Try to Read Your Mind New York Times – Kevin Randall | Published: 11/2/2015 All over the world, political campaigns are seeking voter data and insights that will propel them to victory. Now, that includes the […]
National:
Neuropolitics, Where Campaigns Try to Read Your Mind
New York Times – Kevin Randall | Published: 11/2/2015
All over the world, political campaigns are seeking voter data and insights that will propel them to victory. Now, that includes the contentious field known as neuromarketing – or in this case, neuropolitics. Technologies like facial coding, biofeedback, and brain imaging have long been used by companies in the hope of pushing the boundaries of marketing and product development. But their use by political parties and governments is a growing phenomenon. The practice has come under attack, but the skepticism has not dissuaded political parties in many parts of the world. The campaigns of presidents and prime ministers on at least three continents have hired science consultants to scan voters’ brains, bodies, and faces, all with the aim of heightening their emotional resonance with the electorate.
New Generation of Trade Group CEOs Take More Aggressive – and at Times Unorthodox – Approach to Lobbying
Washington Post – Catherine Ho | Published: 11/4/2015
A new generation of trade group leaders are deploying a wide range of unorthodox lobbying tactics, a shift reflecting the new normal of the advocacy business. Some of the new CEOs are as much as two or three decades younger than their predecessors and came to power at the same time gridlock and chaos reigned in Congress. Rather than only forging relationships with federal lawmakers, they are turning to state-level lobbying and media campaigns to shape public opinion. These younger leaders are pushing to remake the image of some trade groups as a cushy track to retirement for former elected officials.
Federal:
Bush, Clinton Benefit from Lobbying Gray Area
Politico – Isaac Arnsdorf | Published: 11/3/2015
Campaigns are required to file reports detailing registered lobbyists who round up donations, but that number is only a small slice of the fundraisers who work in some capacity in Washington’s influence industry. A quarter of those who bundled $100,000 or more for Hillary Clinton work at lobbying firms or public affairs agencies, lobby at the state level, or otherwise make their living from influencing the government, even though they are not themselves registered to lobby Congress. For Jeb Bush, 58 of the 342 people who raised at least $17,600 are advocates and operatives linked to the influence industry, although they are not reported as federal lobbyists. The reliance on these power brokers shows how much both candidates are drawing on family and party networks forged over decades in politics to bankroll their presidential bids. It also illustrates the weaknesses in the rules meant to subject lobbyists to more public scrutiny.
Paul Ryan Lands at Center of a Rivalry for the Soul of the G.O.P.
New York Times – Carl Hulse | Published: 11/2/2015
The rise of the tea party-influenced conservatives who toppled John Boehner as House speaker has driven a wedge between the party’s right flank and the corporate interests and business advocates who were the embodiment of the Republican Party in years past. Now the term Chamber of Commerce Republican has been turned into a pejorative by hard-right conservative activists who rail against “crony capitalism.” It is an extraordinary political development, one that the new speaker, Paul Ryan, will have to navigate as he takes control of the House. And those on the hard right and in the corner offices are watching closely to see which way he leans.
Twitter <3 Enhanced Political #Disclosure
Center for Public Integrity – Dave Levinthal | Published: 11/4/2015
Twitter’s nascent PAC, which is poised to make its first-ever federal campaign contributions, plans to disclose them within 48 hours. “Timely disclosure is something we could do. We figured, ‘Why not?'” said Colin Crowell, Twitter’s head of global public policy. Twitter will also publicly disclose its trade association memberships and membership costs, as well as any financial associations it has with nonprofit organizations, which are not required to reveal their donors.
From the States and Municipalities:
Arizona – Elections Panel Moves to Uncover Political ‘Dark Money’
Arizona Daily Star – Howard Fischer (Capitol News Services) | Published: 10/31/2015
The Citizens Clean Elections Commission adopted a rule that spells out what will be considered to be a “political committee.” That designation is crucial because only political committees are required to report both contributions and expenditures. The new guideline says the reporting requirement applies when any organization spends at least half of its overall communications expenses on Arizona political races. Tom Collins, the commission’s executive director, said the rule is a direct result of heavy spending last election by groups that refused to disclose the source of their cash.
California – Tighter Rules for Lobbying Win S.F. Voter Approval
San Francisco Chronicle – Kevin Fagan | Published: 11/3/2015
Proposition C, which was approved by San Francisco voters on November 3, will require individuals or groups to register as lobbyists if they spend more than $2,500 in a month to encourage others to lobby city officials directly. The issue was placed on the ballot by a unanimous vote of the city Ethics Commission to try to rein in “Astroturf” lobbying, which refers to third-party influence efforts that try to disguise the real group or person behind a fake grassroots message. Many of the city’s grassroots and nonprofit organizations supported the idea behind Proposition C but said it would unfairly force them to abide by the same rules as more-moneyed traditional lobbyists. Proponents maintained that all lobbyists, big and small, should be equally accountable.
Connecticut – Joseph Ganim, Disgraced Ex-Mayor of Bridgeport, Conn., Wins Back Job
New York Times – Kristin Hussey | Published: 11/3/2015
An ex-convict who spent seven years in federal prison for corruption reclaimed the Bridgeport mayor’s office, completing a stunning comeback bid that tapped nostalgia for brighter days in Connecticut’s largest city. Joe Ganim, who was released from prison five years ago, declared victory in a race involving seven opponents. Ganim was mayor from 1991 to 2003, resigning after he was convicted of accepting hundreds of thousands of dollars from people and companies doing business with the city. Eddie Moro, a security employee in the public school system, said he has no problem with Ganim’s criminal record. “He didn’t kill nobody,” said Moro.
Maine – Maine Backs Post-Citizens United Campaign Finance Initiative
Huffington Post – Paul Blumenthal | Published: 11/3/2015
Maine voters approved a proposal to expand the state’s public campaign financing system. It will increase public funding for candidates to as much as $3 million while allowing them to collect additional five-dollar qualifying donations. The initiative will also require organizations behind political advertisements to disclose the top three donors funding the ads and increase penalties for candidates who violate the state’s campaign finance laws.
Maryland – D.C. Law Student Takes Case against Md. Gerrymandering to Supreme Court
Washington Post – Robert Barnes | Published: 11/1/2015
Steve Shapiro worked on an assignment for a class at American University’s Washington College of Law, where he is a first-semester student. He pored over his brief due at the U.S. Supreme Court, where his battle against Maryland’s often-criticized gerrymandered congressional districts will be heard in a case that bears his name. It was his decades-long fight with Maryland’s political leadership over redistricting that, in part, fueled his decision to leave his job as a career federal employee and enroll full time in law school. Before he ever took his first law class, he served as his own lawyer, filing the original complaint in what is now called Shapiro v. McManus and a subsequent appeal after losing the first round.
New York – In Two Corruption Cases, the Culture of Albany Will Go on Trial
New York Times – William Rashbaum and Susanne Craig | Published: 11/1/2015
The former leaders of New York’s two legislative chambers face simultaneous public corruption trials this month in a federal courthouse. Former New York State Assembly Speaker Sheldon Silver, long one of the state’s most powerful lawmakers, goes on trial first on charges he used his office to collect millions of dollars in kickbacks and bribes. Dean Skelos, a former Senate majority leader, faces his own criminal trial on November 16. He is charged with taking official actions on behalf of several companies in exchange for payments to his son. The trials are the highest-profile cases in a string of corruption scandals. More than 30 state lawmakers have either been indicted or forced from office in recent years.
New York – Mayor de Blasio’s Hired Guns: Private consultants help shape City Hall
New York Times – Thomas Kaplan | Published: 11/4/2015
Several consultants helped guide Bill de Blasio campaign for New York City mayor in 2013, and they have remained at his side as a kind of privately funded brain trust, offering strategic advice and helping to shape the message that comes from City Hall. Their involvement also poses conflict-of-interest concerns; some of their firms have clients that do business with the city. Most of the money for the consultants has come from a nonprofit organization, the Campaign for One New York, that was created by political professionals from his mayoral campaign as a vehicle to push de Blasio’s initiatives, and whose donors have included real estate developers and unions.
North Carolina – McCrory Brokered Meeting on Contract for Friend and Campaign Donor
Raleigh News & Observer – Joseph Neff, Craig Jarvis, and Ames Alexander | Published: 10/30/2015
Last fall, North Carolina Gov. Pat McCrory personally intervened on behalf of a friend and major political donor who wanted to renew $3 million in private prison contracts over the objections of McCrory’s top prison officials. Graeme Keith Sr., a developer and retired banker, has pursued private maintenance contracts in state prisons since 1999. Keith’s contracts at two prisons were set to expire December 31, 2014; a third would have ended four months later. The governor convened an October 2014 meeting where, according to a Department of Public Safety memorandum, Keith told prison officials and McCrory that “he had been working on this project ‘private prison maintenance’ for over ten years and during that time had given a lot of money to candidates running for public office and it was now time for him to get something in return.”
Texas – Opponents of Houston Rights Measure Focused on Bathrooms, and Won
New York Times – Manny Fernandez and Alan Blinder | Published: 11/4/2015
More than a year ago, when Houston Mayor Annise Parker and her supporters first proposed an ordinance outlawing discrimination based on factors such as race, religion, and sexual orientation and steered it through the city council, they expected it to be welcomed in a diverse city that had become, with Parker’s election in 2009, the nation’s first big city to elect an openly gay or lesbian mayor. Instead, voters rejected the ordinance overwhelmingly. Opponents zeroed in on the measure’s gender-identity protections and focused the debate on a narrow issue whose very relevance was disputed by rivals: bathrooms, and access to them. What was clear was that a months-long effort by social conservatives to repeal the ordinance and reframe the issue had paid off, through tactics likely to be used again in similar battles around the country.
Washington – ‘Democracy Vouchers’ Win in Seattle; First in Country
Seattle Times – Bob Young | Published: 11/3/2015
Seattle voters passed a ballot measure that was seen as a national model for campaign finance reform. Under Initiative 122, every city resident would receive four “democracy vouchers” each representing $25 of public funds. The vouchers could be given to any local candidate of their choice, as long as that candidate opted in to the program. The measure also prohibits candidates from receiving contributions from any person or company with at least $250,000 in city contracts or $5,000 in lobbying expenses. It also will bar elected officials and their top aides from lobbying the city for three years after leaving their government jobs.
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.
October 30, 2015 •
News You Can Use Digest – October 30, 2015
Federal: Conservative PACs Turn Attack on G.O.P. Leaders into Fund-Raising Tool New York Times – Eric Lipton and Jennifer Steinhauer | Published: 10/23/2015 Petitions to oust Republican leaders in Congress that started surfacing online over a year ago did not come […]
Federal:
Conservative PACs Turn Attack on G.O.P. Leaders into Fund-Raising Tool
New York Times – Eric Lipton and Jennifer Steinhauer | Published: 10/23/2015
Petitions to oust Republican leaders in Congress that started surfacing online over a year ago did not come from Democrats. They came from conservative websites and bloggers who have helped stoke a grassroots rebellion to make Congress more conservative, a continuation of the tea party movement. But these politically charged appeals to conservatives around the country were often accompanied by a solicitation for money, and the ultimate beneficiaries, records suggest, are the consultants who created the campaigns rather than the causes they are promoting.
Dennis Hastert, Ex-Speaker of House, Pleads Guilty
New York Times – Monica Davey and Mitch Smith | Published: 10/28/2015
Former U.S. House Speaker J. Dennis Hastert pleaded guilty to bank fraud charges connected to $1.7 million he paid to cover up what federal officials said was sexual misconduct dating back to his years as a high school teacher and coach. He pleaded guilty to one count of “structuring” – taking money out of the bank in amounts below $10,000 to evade reporting rules on large cash movements. When the FBI questioned Hastert on why he withdrew the money, he told agents he did not feel safe with the banking system. The plea allows Hastert to avoid an in-court airing of his past. Prosecutors are recommending up to a six-month prison sentence.
DNC Courts Lobbyist Cash with Promise of VIP Access at Convention
The Hill – Megan Wilson | Published: 10/22/2015
Leaders from the Democratic National Committee (DNC) met with dozens of lobbyists to unveil plans for next year’s nominating convention in Philadelphia and kick off a bout of fundraising for the event. The national convention, still eight months away, will be an expensive party to throw, with early estimates putting the price tag at $85 million. Documents obtained by The Hill show the DNC handed out a menu of reward offerings in exchange for donations and bundled cash. Individuals are able to give a maximum of $100,200 to the DNC’s convention fund per year, but are encouraged to bundle together many times that figure.
FEC Overhauls Website to Make It Easier to Track Campaign Money
USA Today – Fredreka Schouten | Published: 10/27/2015
The FEC is set to unveil a $2.5 million overhaul of the agency’s website that will make it easier for average citizens to follow the money themselves. Among the many changes is that the new version can be viewed on any size screen, allowing users to view campaign finance data on their mobile phones and tablets. The commission’s disclosure database contains more than 14 billion data elements, and FEC Chairperson Ann Ravel said she finds the current site so hard to navigate that she usually just asks a staffer to find the information she wants. She said the new site will be more intuitive.
Investing in Lobbying Pays Off
New York World – Masako Melissa Hirsch | Published: 10/28/2015
Motif Investing created an investment option for its clients consisting of the 20 companies that spend a larger share of their assets on lobbying than other firms. The Kings of K Street stock portfolio has outperformed the Standards & Poor’s 500 by a factor of two for the past two years, according to Motif. In each of the past seven years, businesses, advocacy groups, and others spent more than $3 billion on lobbying the federal government. Billions more were spent at the state and local levels. Some research has pointed to the benefits of lobbying. Studies have found companies that lobby have lower tax rates, for example.
Paul Ryan Is Elected House Speaker, Hoping to Manage Chaos
New York Times – Jennifer Steinhauer | Published: 10/29/2015
Lawmakers elected U.S. Rep. Paul Ryan as the speaker of the House, putting an end to weeks of uncertainty over who would lead the raucous GOP conference after John Boehner’s surprise resignation. Ryan’s election gives House Republicans a chance to hit the reset button. Throughout Boehner’s nearly five years as speaker, centrist members and tea party conservatives were at war with each other over policy and tactics. The test for Ryan will be whether he can manage, perhaps even blunt, the hardline wing of the Republican conference, or if he too will fall to its members’ intransigence. He had warned members that while he would take their concerns about process seriously, he would not brook dissent that would undermine his ability to lead them.
From the States and Municipalities:
California – Former SF Police Union President Fined for Illegally Lobbying Last Year
San Francisco Examiner – Jonah Owen Lamb | Published: 10/27/2015
Gary Delagnes, formerly the San Francisco Police Association’s head and sometime spokesperson, was fined $5,500 for not registering as a lobbyist and failing to file disclosure reports required in connection with an effort to defeat a resolution on police brutality last December. At the time he was a paid political consultant for the union. City law defines a lobbyist as anyone who makes one or more contacts with elected officials on behalf of their employer. Delagnes says he never registered because he did not think his actions qualified as lobbying. He simply emailed several supervisors about the issue.
Kansas – Kansas Legislation Is Most Anonymous in Nation
Topeka Capital-Journal – Celia Llopis-Jepson | Published: 10/26/2015
More than 90 percent of bills in Kansas’ 2015 legislative session did not bear the names of lawmakers involved in writing or introducing them. Over several decades, the state’s lawmaking system has evolved into one in which legislators introduce hundreds of bills yearly —but only put their names on a small number for which they want to take credit. Public efforts to explore the origin of bills face obstacles: lawmakers file proposals for each other, written meeting minutes are not user friendly, and legislators themselves say some are engaging in a cat-and-mouse game to conceal involvement in controversial bills.
Louisiana – Louisiana Primary’s Ugly Race
Bloomberg.com – Ben Kamisar | Published: 10/29/2015
In a race that made a late but convincing case for the enduring entertainment value of Louisiana politics, U.S. Sen. David Vitter barely squeaked out a second-place finish in the primary election for governor to make a runoff against John Bel Edwards, a Democratic state representative. For months, Vitter was seen as the front-runner, but over the summer his lead steadily disintegrated. Vitter’s opponents spent significant time and money rehashing Vitter’s 2007 prostitution scandal, including a claim by a local blogger that Vitter had fathered a child with a prostitute. A private investigator conducting opposition research for the Vitter campaign was arrested near New Orleans recently.
New Mexico – Dianna Duran Resigns, Pleads Guilty to Two Felonies
NewMexicoPolitics.net – Heath Haussamen | Published: 10/23/2015
New Mexico Secretary of State Dianna Duran, who was charged with multiple counts of public corruption, pleaded guilty to four misdemeanors and two low-level felonies in a plea deal that will likely spare her jail time and allow her to keep her pension. The agreement came just hours after she submitted her resignation. Duran was facing 65 criminal charges including embezzlement, money laundering, and fraud stemming from allegations she illegally transferred about $13,000 in campaign funds to her personal account. Prosecutors said Duran altered her campaign finance reports she filed with her own office to cover up the transfers that were part of an elaborate scheme to support a gambling habit.
New York – Albany’s Museum of Political Corruption No Longer Just a Funny Idea
Albany Business Review – Michael DeMasi | Published: 10/28/2015
Bruce Roter, a music professor at the College of St. Rose, wants to open a Museum of Political Corruption in Albany. The museum would be a place to explore, understand, and poke some fun at the fact New York’s past and present are filled with tales of politicians-gone-bad. New chapters in that long history are being written seemingly every day. The New York Board of Regents granted the museum a five-year provisional charter and it now has an eight-member board of trustees. “It’s funny, but it’s serious at the same time,” Roter said. “… If this can make the whole subject less complicated, if people feel empowered they can do something or have a say about the governance in our state, then I think they are doing a tremendous service to our community.”
New York – Oracle Sued by N.Y. Pension over Political-Giving Disclosure
Bloomberg.com – Freeman Klopott | Published: 10/28/2015
Oracle was sued by a New York pension fund over allegations the company is withholding information about its political donations. State Comptroller Thomas DiNapoli has been using his position as the sole trustee of New York’s $184.5 billion pension fund to press corporations to make their donations public after the Supreme Court’s 2010 ruling in Citizens United allowed companies to make political gifts without limitations. The fund owns about 10 million shares of Oracle. DiNapoli said the company did not live up to a 2007 agreement with the Sheet Metal Workers’ National Pension Fund to provide an annual report disclosing policies for political contributions. The company also did not respond to specific requests from the fund for those records, according to the lawsuit.
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.
October 23, 2015 •
News You Can Use Digest – October 23, 2015
Federal: Even with Rising Debt and Sinking Polls, Candidates Find Dropping Out Is Hard to Do Los Angeles Times – Noah Bierman | Published: 10/19/2015 Over time, several presidential hopefuls with dwindling bank accounts and bottom-scraping poll numbers may be recapping […]
Federal:
Even with Rising Debt and Sinking Polls, Candidates Find Dropping Out Is Hard to Do
Los Angeles Times – Noah Bierman | Published: 10/19/2015
Over time, several presidential hopefuls with dwindling bank accounts and bottom-scraping poll numbers may be recapping the experience of Scott Walker and Rick Perry, the first candidates to quit the race. They will have to weigh the risks to their reputations, finances, and political futures of staying in the race versus getting out. History shows candidates are likely to push against the odds for as long as they can resist sober political facts. Some may prolong time in the campaign to advance a single issue, enhance a career in television, or set themselves up for a job in the next administration. They may time their withdrawal to raise the leverage of their endorsement or preserve their standing at home.
How Time Ran Out on Joe Biden’s Presidential Dream
Washington Post – Dan Balz and Paul Kane | Published: 10/21/2015
Vice President Joe Biden said he will not be a candidate for president. The announcement closes the door on one of the biggest potential challenges to Hillary Clinton’s second attempt at capturing the Democratic nomination. As the 2016 campaign took shape, Biden played coy about his intentions, never signaling clearly an interest in running but never saying he would not. With the Iowa caucuses on the horizon, Biden acknowledged the result of his protracted deliberations, saying a “window” had closed on “mounting a realistic campaign.”
‘Outsider’ Presidential Candidates Prove Competitive in Fund-Raising
New York Times – Nicholas Confessore and Eric Lichtblau | Published: 10/15/2015
In both the Republican and Democratic primaries, upstart presidential candidates shunned by their parties’ major donors are now financially competitive with – and, in some cases, vastly outraising – opponents who have spent months or years courting the big-name donors and fundraisers who have traditionally dominated the money race. The steady fundraising of outsider candidates, who have tapped into a network of smaller donors, suggests a financial paradigm shift in both parties, but particularly on the right, where candidates beloved by the Republicans’ socially conservative base have sometimes struggled to muster the financial resources to sustain a long-term campaign for the nomination.
‘Supermajority’ of House Freedom Caucus to Back Paul Ryan’s Speaker Bid
Washington Post – Mike DeBonis and Robert Costa | Published: 10/21/2015
A strong majority of anti-establishment conservatives in the Freedom Caucus voted to support U.S. Rep. Paul Ryan for House speaker, assuring he will have the votes to secure the post and averting a leadership crisis for Republicans. Ryan indicated he was prepared to seize the gavel and try to bring unity to his party, which has been riven over how House leaders exert authority over members. That fight had become so bitter that it forced the resignation of Speaker John Boehner and derailed the candidacy of Majority Leader Kevin McCarthy to replace him.
From the States and Municipalities:
Arizona – Public Disservice: Few punished in Arizona discrimination cases
Arizona Republic – Rob O’Dell and Craig Harris | Published: 10/15/2015
The Arizona Republic uncovered dozens of cases of sexual, racial, and age discrimination claims by state workers. More than half the employees said they were penalized by retaliation, the investigation found, while those accused of discrimination went virtually unpunished. More than one-third were actually promoted after their alleged actions, and more than 40 percent received pay raises following the settlements. Taxpayers shelled out more than $6 million from 2009 to 2014 to settle discrimination, harassment, or other workplace claims by 57 public employees from state agencies, universities, and courts.
Arkansas – Ex-Arkansas Senate Head Got $120K from Group
Arkansas Business – Claudia Lauer (Associated Press) | Published: 10/21/2015
The Arkansas Faith and Freedom Coalition paid Michael Lamoureux’s law firm $120,000 for “consulting” services in 2013, when Lamoureux was the Arkansas Senate president pro tempore. He left the Senate in 2014 to become chief of staff for Gov. Asa Hutchinson. The coalition’s website says it favors such things as “legislation that strengthens families … protects the dignity of life and marriage,” and lowers taxes on small businesses and families. It was unclear what type of consulting work Lamoureux’s former law firm did for the coalition. The Senate’s rules of conduct in 2013 explicitly prohibited senators from discussing or voting on issues that “will specifically relate to a business which employs the senator or in which he or she receives compensation as an attorney or consultant.”
California – ‘Behested Payments’ Let Private Groups Curry Favor with Politicians – New Law Will Limit Disclosure
KQED – Marisa Lagos | Published: 10/16/2015
Once they are in office, elected officials in California can use their clout to help raise cash for pet projects outside of state government. Gov. Jerry Brown has directed the bulk of his $30 million in behested payments to charter schools in Oakland. The amount they can raise for these private groups is unlimited, but officials must report when the donations top $5,000 from a single source in one year. In all, politicians have directed more than $120 million to private groups since regulators started requiring disclosure in 1997. Critics say the payments may go to good causes, but are simply another way for special interest groups – including corporations with business before state government – to curry favor.
California
New California Rules Meant to Deter Coordination in Campaigns
Sacramento Bee – Jim Miller | Published: 10/15/2015
Regulations approved by the California Fair Political Practices Commission (FPPC) effectively shifts the burden of proof in cases of suspected coordination in campaigns from the government to the candidate or outside spending committee. It puts them on notice if former aides or immediate family members go to work for an outside spending group involved in a candidate’s race, for instance, or a candidate raises money for an outside organization. It also would restrict the sharing of candidate-produced video and data. FPPC Chairperson Jodi Remke said the new rules address the growth in outside spending groups since voters approved contribution limits in 2000. Though donations directly to candidates are limited, the independent expenditure committees are allowed to raise as much as they want, as long as there is no coordination between them and the candidates who benefit.
Connecticut – Political Campaigns Rake in Cash despite Ban
The Day – Ken Dixon (Hearst Connecticut Media) | Published: 10/19/2015
Connecticut law prohibits those who do business with the state from contributing to the campaigns of politicians who could award or influence state contracts. But that has not stopped the flow of money from state contractors. An investigation into the Democratic State Central Committee’s federal account, which has no restrictions on who can contribute, shows it is filled with money from those on Connecticut’s banned contractor list. Watchdogs say the use of the federal account is simply a backdoor system of “pay-to-play.”
Missouri – A Few Hold the Political Purse Strings in Missouri
Kansas City Star – Jason Hancock | Published: 10/20/2015
More than 25 percent of all large campaign contributions in Missouri, defined by state law as any donation greater than $5,000, over the last five years were made by only 10 individuals and groups. Rex Sinquefield, a retired financier, has given $22.1 million since 2011 in large contributions. That is three times as much as the second largest donor. The cost of campaigning in Missouri has risen dramatically since the Legislature voted to abolish contribution limits in 2008. Republicans are benefiting the most, but Democrats are not shy about taking their share of five- and six-figure checks from donors.
New Mexico – Duran Proposes New Rules for Campaign Finance
Albuquerque Journal – Deborah Baker | Published: 10/17/2015
New Mexico Secretary of State Dianna Duran is moving ahead with new rules governing campaign finance, even as she faces criminal charges for allegedly misusing her own campaign money. The advocacy group ProgressNow New Mexico said that Duran removing herself from the process is the only way voters will be confident the rules changes “are being made honestly and with the best intentions.” Some of the proposed rules were prompted by an elections bill passed in this year’s legislative session. Other rules have been in the works at Duran’s office for a couple of years in an effort to clarify existing law and get New Mexico in sync with federal court decisions.
Pennsylvania – Ethics Missteps Don’t Deter Pennsylvania Ex-LCB Officials
Pittsburgh Tribune-Review – Kari Andren | Published: 10/21/2015
Four former Pennsylvania Liquor Control Board officials who violated state ethics laws by accepting gifts from vendors now make regular appearances at the agency as employees and lobbyists for the industry they once regulated. State officials and lawmakers who leave government are required by law to wait a year before conducting business with former colleagues. Terry Madonna, a professor at Franklin & Marshall College, said the waiting period does not go far enough to curb the appearance that the former officials bring unfair influence gained in the public sector to their private work. “You and I know that doesn’t change the culture, doesn’t change relationships,” Madonna said.
Pennsylvania – Pittsburgh City Council Passes New Campaign-Finance Rules
Pittsburgh Post-Gazette – Robert Zullo | Published: 10/20/2015
The Pittsburgh City Council gave final approval to a series of campaign finance reforms. The bill makes the city’s contribution limits conform to the FEC standards, which are $2,700 for individuals and $5,000 for political committees per election. For the purposes of the limits, primaries and general elections are considered separate elections. The ordinance also bans “stacking” contributions, when candidates accept donations for the primary and general elections at the same time.
Wisconsin – Assembly Approves Splitting GAB into Elections and Ethics Agencies
Milwaukee Journal Sentinel – Patrick Marley and Jason Stein | Published: 10/21/2015
Two controversial bills that would alter Wisconsin’s elections landscape faced an uncertain future in the Senate, even as Assembly Republicans put them on a fast track to passage. The Assembly for a bill to replace the Government Accountability Board with two separate boards with partisan appointees, as opposed to the current board, a panel of former judges. The other bill that would give state campaign finance law its most substantial overhaul in decades passed unanimously after Assembly Democrats recused themselves from voting. The campaign finance legislation would double contribution limits, allow corporations and unions to give money to political parties and key campaign committees, and permit candidates to work closely with advocacy groups that do not have to disclose where they get their money.
Wisconsin – Lawmakers Approve Bill Ending John Doe Probes of Political Crimes
Milwaukee Journal Sentinel – Patrick Marley and Jason Stein | Published: 10/20/2015
The Wisconsin General Assembly passed legislation that prohibits prosecutors from using secret inquiries known as John Doe investigations to probe allegations of political crimes such as campaign finance violations or misconduct in public office, a method used twice by prosecutors to investigate Gov. Scott Walker’s campaign and his aides. Republicans supporting the legislation said it would provide a more transparent process of investigating and prosecuting political wrongdoing, while Democrats said the bills shield politicians from scrutiny and opens the door to corruption.
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.
October 16, 2015 •
News You Can Use Digest – October 16, 2015
National: The Gender Gap in Political Giving New York Times – Jeremy Merrill | Published: 10/14/2015 Only about 30 percent of big donors to campaigns are women. The estimated gap in overall fundraising is even larger, because the average contribution from […]
National:
The Gender Gap in Political Giving
New York Times – Jeremy Merrill | Published: 10/14/2015
Only about 30 percent of big donors to campaigns are women. The estimated gap in overall fundraising is even larger, because the average contribution from a man is much larger than the average for a woman. It is impossible to know from the way contributions are recorded by campaigns whether a political donation that officially comes from one person actually comes from a married couple. But the name on a political contribution still matters, for access to political figures and influence with them. In an era when big donors demand ever more access to potential future leaders, the gender gap in contributions contributes to a gender gap in political power as well.
Federal:
Dennis Hastert Reaches Plea Deal in Bank Withdrawals
New York Times – Julie Bosman | Published: 10/15/2015
Former U.S. House Speaker Dennis Hastert will plead guilty to charges he lied to the FBI about making illegally structured bank transactions as part of an effort to pay hush money to someone he wronged in the past. With the plea agreement, Hastert may be able to keep embarrassing details about his past out of the public eye but it could mean serving time in prison. Hastert was indicted in a scheme in which he paid more than $1.7 million to conceal unspecified past misconduct to someone only identified as “Individual A.” While the indictment does not detail the wrongdoing, law enforcement officials have said the money was meant to conceal sexual misconduct committed against a male student when Hastert was a high-school teacher and coach.
Nonprofit Masks Source of Ads Backing Rubio
New York Times – Jonathan Martin and Nicholas Confessore | Published: 10/11/2015
Voters in states like New Hampshire and Iowa have been left largely in the dark about who is putting the most money behind U.S. Sen. Marco Rubio’s campaign for president. Of all the television advertisements aired in support of the senator so far this year, $5.5 million worth, none have been paid for by Rubio’s own campaign. Instead, the money has flowed through a nonprofit group called the Conservative Solutions Project, formed by a former Rubio aide and now overseen in part by a Republican strategist who is close to Rubio’s campaign manager. Unlike candidates and super PACs, the nonprofit, which has raised more than $18 million, will never be required to disclose anything about its donors. While all of Rubio’s competitors are supported by a super PAC, no one is relying on a secretive nonprofit for the bulk of its advertising.
The Families Funding the 2016 Presidential Election
New York Times – Nicholas Confessore, Sarah Cohen, and Karen Yourish | Published: 10/10/2015
Just 158 families, along with companies they own or control, contributed $176 million in the first phase of the presidential campaign. Not since before Watergate have so few people and businesses provided so much early money in a campaign, most of it through channels legalized by the U.S. Supreme Court’s Citizens United decision. In marshaling their financial resources chiefly behind Republican candidates, the donors are serving as a kind of financial check on demographic forces that have been nudging the electorate toward support for the Democratic Party and its economic policies. Interviews and public documents reveal the donors are a class apart, distant from much of America while geographically, socially, and economically intermingling among themselves.
The GOP Sinks Deeper into Chaos. Can It Still Function as a Party?
Washington Post – Karen Tumulty | Published: 10/8/2015
Republicans are in an historic state of chaos. The most powerful force at work in the once-hierarchical GOP is anger, directed as much at its own leaders as anywhere else. First, a contingent of conservative House members effectively forced Speaker John Boehner to resign rather than face a possibly losing battle to hold on to his job. They also claimed House Majority Leader Kevin McCarthy, who had been considered the favorite to replace Boehner until he announced he is dropping out of the race. With no obvious replacement for Boehner in sight, “it is total confusion – a banana republic,” said U.S. Rep. Peter King. Parallel currents of rage have been roiling the 2016 presidential race, diminishing hopes that an eventual nominee can bring order and direction to the increasingly dysfunctional party.
Through Executive Orders, Obama Tests Power as Purchaser-in-Chief
USA Today – Gregory Korte | Published: 10/11/2015
If there is one industry that has been disproportionately impacted by President Barack Obama’s executive orders, it is federal government contractors. Since becoming president, Obama has signed at least 15 executive orders and presidential memoranda aimed at contractors, dictating their hiring and firing practices, compensation policies, and working conditions. The White House is hoping that the orders send a message to the economy at large, and have an effect far beyond the public sector. But critics of Obama’s aggressive use of the executive order say the actions will kill off small businesses and may be unconstitutional.
From the States and Municipalities:
Alabama – Jarrod Massey: Looking for a second chance after prison in bingo case
AL.com – Charles Dean | Published: 10/11/2015
Former lobbyist Jerrod Massey recently completed a prison sentence for conspiracy and bribery stemming from the role he played in attempting to buy the votes of Alabama senators. He is now telling the cautionary tale of how big money and a bigger ego to join the relatively small club of the best lobbyists in Montgomery led him to do things that ultimately put him behind bars. Massey said he justified what he was doing because of the environment he saw around him. “I was aware legally I had crossed a line,” said Massey. “I’ve gone back and trust me, I spent many nights in a prison bunk examining really, where did I go wrong, where did that start?”
Illinois – Former Chicago Public Schools Chief to Plead Guilty to Bribery Scheme
Chicago Tribune – Jason Meisner and Juan Perez, Jr. | Published: 10/8/2015
Former Chicago Public Schools Chief Executive Officer Barbara Byrd-Bennett will plead guilty to charges she gave a no-bid $20.5 million contract to a former employer in exchange for future employment and a $250,000 kickback for two relatives. According to the indictment, Byrd-Bennett steered the contract to SUPES Academy, where she once worked as a consultant. Much of the indictment centers on emails sent between SUPES Academy co-owner Gary Solomon and Byrd-Bennett that seem to make no effort to conceal the alleged scheme. In one message, which she finished with a smiley-face emoticon, Byrd-Bennett implied she needed cash because she had “tuition to pay and casinos to visit.”
Iowa – Trial Begins for Veterans of 2012 Ron Paul Campaign
Washington Post – David Weigel | Published: 10/13/2015
A federal trial is set to begin in Iowa for two aides to Ron Paul’s 2012 presidential campaign, Jesse Benton and Dimitri Kesari, accused of secretly paying a state lawmaker for his endorsement. Prosecutors say they concealed payments to former Iowa Sen. Kent Sorenson after he jumped from the Michele Bachmann campaign to the Paul campaign a few days before the January 2012 Iowa caucuses. Benton had to step away from the super PAC of U.S. Sen. Rand Paul in the wake of the indictment. Kesari, is simultaneously a suspect in a 2014 burglary at the home of a deceased Ron Paul campaign worker.
New York – Advance Group Fined $26k by Schneiderman, Campaign Finance Board
Albany Times Union – Chris Bragg | Published: 10/8/2015
A Manhattan lobbying firm was fined nearly $26,000 for improperly coordinating elements of the campaigns of two New York City Council candidates and expenditures by an animal rights group. The penalties stemmed from consulting work done by the Advance Group for Laurie Cumbo and Mark Levine, who were both elected to the council in 2013, and work done simultaneously for NYClass, an advocacy group that has pushed for a ban on the Central Park horse-carriage industry. The state attorney general’s office found NYClass used office space and staff members from the Advance Group and made expenditures on behalf of the campaigns of Levine and Cumbo. In August 2013, the New York City Campaign Finance Board warned that NYClass’s expenditures could not be considered independent.
New York – JCOPE Announces Amnesty Program for Some Lobbyists
Albany Times Union – Casey Seiler | Published: 10/13/2015
The Joint Commission on Public Ethics (JCOPE) approved a plan for a six-month amnesty and compliance program to encourage lobbyists and clients of lobbyists who have failed to submit any required filings with the agency. To qualify for the program, applicants must not have previously been contacted by JCOPE for failure to comply with filing requirements and cannot have been the subject of a criminal proceeding related to a violation of the lobbying law. Among the requirements are that applicants would be required to file their reports going back from January 1, 2013 and to submit all applicable filing fees. This amnesty would not apply to “professional” lobbyists or established clients of lobbyists.
Ohio – Court Documents: A second Redflex executive pleaded guilty in bribery conspiracy
Columbus Dispatch – Doug Caruso | Published: 10/15/2015
Federal court documents outline how Redflex Traffic Systems Vice President Aaron Rosenberg worked with lobbyist John Raphael to get the company a contract in Columbus. Rosenberg pleaded guilty to making, and hiding, campaign donations to influence city officials from 2005, when the original red-light camera contract started, through 2013. He served a year on probation as part of a deal to help federal prosecutors. Raphael will plead guilty to one count of extortion. His plea agreement says he shook down Redflex officials for campaign contributions by threatening company officials with the loss of influence and contracts.
Ohio – Ginther among Those Being Investigated Over Trip to Big Ten Title Game
Columbus Dispatch – Lucas Sullivan | Published: 10/9/2015
The Ohio Ethics Commission is investigating Columbus City Council President Andy Ginther and three other current or former council members for a lobbyist-funded trip they took to the Big Ten Championship football game last December. Ginther, Eileen Paley, Shannon Hardin, and former council member Michelle Mills have been asked to submit records. Mills resigned earlier this year for failing to report the trip on financial disclosure forms. It was paid for by lobbyist John Raphael, who has agreed to plead guilty to extortion in the federal investigation of money that Redflex Traffic Systems funneled through Raphael to some Columbus elected officials. The council members paid $250 for the trip, but the fair-market value may have been $750. State law requires elected officials to disclose the difference in the cost paid compared with the fair market value, if the difference in the value is greater than $75.
Washington – Seattle Council Candidate Alleges Political Shakedown by Developer
Seattle Times – Daniel Beekman | Published: 10/12/2015
Seattle City Council candidate Jon Grant claims the developer of a project across from City Hall tried to shake him down, and a text message sent to former Mayor Mike McGinn reveals some of what went on. Grant claims Brett Allen, a senior vice president at Triad Capital Partners, approached him at a campaign event and asked for help settling a lawsuit brought by Grant’s former employer. Grant says he was told the payoff could be that a new political committee gearing up to spend heavily against him would go away. Then Allen sought to have McGinn broker a meeting with Grant, sending the former mayor a text message that spelled out the proposed quid pro quo. McGinn endorsed Grant recently.
Wisconsin – GAB Director to GOP Lawmaker Questioning His Relationship with Ex-IRS Administrator: ‘Have You No Decency?’
Wisconsin State Journal – Mark Sommerhauser | Published: 10/13/2015
State Sen. Chris Kapenga pressed the director of the Wisconsin Government Accountability Board (GAB), Kevin Kennedy, about his relationship with former IRS administrator Lois Lerner during a hearing on a bill to revamp the board. Lerner became a frequent target of conservatives after reports indicated the IRS targeted nonprofit tea party groups for additional scrutiny under her watch. A visibly angered Kennedy responded by accusing Kapenga of using McCarthy-like tactics in the effort by Republicans to dismantle the GAB. “Have you no decency?” Kennedy asked Kapenga. “I owe you no explanation about my friendships.” Democrats assailed the bill, saying the move could lead to the same sorts of legislative scandals that triggered the GAB’s creation eight years ago.
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.
October 9, 2015 •
News You Can Use Digest – October 9, 2015
National: Corporations Improve Reporting of Political Activity – with Exceptions Center for Public Integrity – Dave Levinthal and Cady Zuvich | Published: 10/8/2015 A new study asserts that most of the nation’s largest corporations are showing “sustained, concrete progress” toward volunteering […]
National:
Corporations Improve Reporting of Political Activity – with Exceptions
Center for Public Integrity – Dave Levinthal and Cady Zuvich | Published: 10/8/2015
A new study asserts that most of the nation’s largest corporations are showing “sustained, concrete progress” toward volunteering more information about how they interact with governments, politicians, and campaigns. The study awarded points in 24 categories to companies that, for example, voluntarily disclose contributions to certain nonprofit groups, publish policies that govern political expenditures from its corporate treasury, and reveal money spent to influence state-level ballot initiatives. Such disclosures generally exceed what is required of corporations, such as regularly filing disclosure reports about congressional lobbying activity.
Federal:
Donald Trump’s Candidacy Raises Novel Ethics Questions
USA Today – Fredreka Schouten | Published: 10/6/2015
Experts say federal law would not explicitly prohibit Donald Trump from continuing to run his sprawling gambling, real-estate, and brand-marketing empire if he is elected president. And the conflict-of-interest rules that bar Cabinet secretaries and other high-ranking executive branch officials from overseeing matters that boost their personal bottom lines do not apply to the president. As president, Trump would appoint members to the Federal Reserve Board, which sets interest rates that could affect mortgages on his real estate. His pick for the Interior Department would make decisions affecting Indian tribes with gambling interests that compete with Trump’s casinos. “[Trump] stands out because he’s not just a businessman – he’s the Flo Ziegfeld or the P.T. Barnum of politics. He’s genuinely unique”” said Barbara Perry, director of presidential studies at the University of Virginia’s Miller Center.
Experts: John Kasich political ads chart new territory
USA Today – Fredreka Schouten | Published: 10/7/2015
A television ad promoting Ohio Gov. John Kasich’s presidential campaign opens with images of Islamic State fighters and Russia’s Vladimir Putin, and touts Kasich as the one candidate with the experience to deal with a dangerous world. The video does not come from the Republican’s campaign, however. Instead, it is produced and funded by an outside group that can raise unlimited amounts to back Kasich’s candidacy. And in a test of rules that bar candidates from coordinating with independent groups, Kasich shot footage for this and other ads in concert with the outside group. Kasich’s camp and his allies argue that is permissible because he was not officially a candidate when he taped material for the commercials.
Gallup Gives Up the Horse Race
Politico – Steven Shepard | Published: 10/6/2015
After a bruising 2012 cycle, in which its polls were farther off than most of its competitors, Gallup said it is not planning any polls for the presidential primaries this cycle. And, even following an internal probe into what went wrong last time around, Gallup would not commit to tracking the general election next year. The move comes at a time of unusual tumult in the polling world. Some have expressed concern about the accuracy of polling at a time when fewer people are reachable or willing to talk to pollsters.
House Majority Leader Kevin McCarthy Drops Out of Race for House Speaker
Washington Post – Mike DeBonis | Published: 10/8/2015
U.S. House Majority Leader Kevin McCarthy abruptly took himself out of the race to succeed John Boehner as speaker, apparently undone by the same forces that drove Boehner to resign. McCarthy’s candidacy was damaged when he suggested in an interview that the House committee investigating Benghazi had the political aim of damaging Hillary Clinton’s presidential campaign. He acknowledged his remarks about Benghazi had factored into his decision. McCarthy’s hopes of uniting Republicans took a blow when a close-knit group of roughly 40 hardline conservatives, the House Freedom Caucus, said it would back U.S. Rep. Daniel Webster.
Pithy, Mean and Powerful: How Donald Trump mastered Twitter for 2016
New York Times – Michael Barbaro | Published: 10/5/2015
Donald Trump has mastered Twitter in a way no candidate for president ever has, redefining its power as a tool of political promotion, distraction, and attack – and turning a 140-character task that other candidates farm out to staff members into a centerpiece of his campaign. In the process, he has managed to fulfill a vision sketched out a decade ago by a handful of digital campaign strategists: a White House candidacy that forgoes costly, conventional methods of communication and relies instead on the free and visceral platforms of social media. As Trump enters an uncertain period, even rival campaigns acknowledge Twitter is providing a bulwark against a slide in his poll numbers by allowing millions of supporters to make his case for him and deflect the controversies he touches off.
From the States and Municipalities:
California – More Transparency Coming for Referendums
San Diego Union-Tribune – David Garrick | Published: 10/6/2015
The San Diego City Council approved stricter reporting rules for groups supporting or opposing referendum campaigns. The changes make disclosures regarding referendums and initiatives the same as the city now requires of candidates seeking elective office. The rules will require committees formed to support or oppose an initiative or referendum to file disclosures within 10 days of receiving $100 contributions and within 24 hours of receiving $1,000 contributions. In addition, committees that make independent expenditures to support or oppose an initiative or referendum must file disclosures of all expenditures and funding sources within 24 hours during the signature gathering phase.
Kansas – Lobbyists Spend $500,000 on Food, Drink for Kansas Lawmakers
Wichita Eagle – Bryan Lowry | Published: 10/2/2015
Lobbyists in 2015 spent more than $500,000 entertaining Kansas lawmakers during the longest legislative session in the state’s history. State law prohibits lobbyists from making campaign donations during the session and limits them to spending $100 on gifts for a lawmaker. But unlike some other states, Kansas has no cap on the amount of food and drink a lobbyist can buy a legislator. Data from the state ethics commission give a partial picture of which organizations were most active in lobbying and which lawmakers they focused on during the session. But more than half the spending is not itemized, meaning it is not linked to a specific lawmaker.
Kentucky – Kentucky Lawmakers, Lobbyists May Already Be Violating New State Ethics Laws
Insider Louisville – Jonathan Meador | Published: 10/6/2015
An advisory from the Kentucky Legislative Ethics Commission expressed concern that lawmakers may be directly soliciting campaign contributions from lobbyists, potentially violating new laws specifically prohibiting them from doing so. Commission Executive Director John Schaaf says legislators might be sending fundraising appeals to lobbyists – including dollar amounts required for attendance at fundraisers, and to whom the payment should be made – which may then be passed on to the lobbyists’ employers. This, Schaaf said, likely would constitute a direct solicitation of a contribution.
New Mexico – New Corruption Fine Could Be Applied to Duran Case
Albuquerque Journal – Deborah Baker | Published: 10/5/2015
New Mexico Secretary of State Dianna Duran is facing 65 criminal charges including fraud, embezzlement, and money laundering for allegedly misusing campaign contributions to cover personal spending, including at casinos. Twenty-six of the charges are felonies. Under a 2012 law, if Duran were convicted of a felony, a judge could increase her sentence by imposing a fine “not to exceed the value of the salary and fringe benefits paid to the offender” since the commission of the first felony for which she was convicted. It would be the first time the law has been used against a statewide official, and it is not clear how it would work. It does not use the word “pension,” and it does not technically provide for pension forfeiture. But losing pensions is precisely what legislators had in mind when they passed it.
North Carolina – Advisory Letter Could Permit Bigger Role for Outside Groups in NC Elections
WRAL – Mark Binker | Published: 10/3/2015
An advisory letter from State Board of Elections Director Kim Strach says her agency has no ability to regulate organizations that mail, publish, or broadcast issue ads, which often look like, and for all practical purposes are, campaign ads. Groups that avoid “express advocacy” and do not trip certain thresholds on the election calendar may remain unregulated and are free to exchange certain types of information with candidates. Strach’s letter lays out how policy organizations or groups formed to bolster a particular candidate for governor, such as the Renew North Carolina Foundation that has aired ads featuring Gov. Pat McCrory, may communicate with their favored candidates.
North Carolina – Legislature’s Last-Minute Rush Prompts Criticism
Raleigh News & Observer – Colin Campbell | Published: 10/3/2015
Lack of transparency and time for public input was a common theme in the General Assembly’s final days in Raleigh, with lawmakers using a variety of maneuvers to move proposals that had not previously been made public. Longtime observers of the legislature say unexamined proposals tend to surface in the final days of every session, regardless of which party is in charge. Also drawing criticism was the decision to extend the final session to four a.m., rather than adjourning and finishing the year’s business in daylight hours later. As dawn approached, some lawmakers fell asleep in their seats. Others played music or passed a football to stay awake. And 37 House members and seven Senate members were already gone before the final vote.
Ohio – Redlight Camera Lobbyist Agrees to Plead to Extortion, Releases Statement
Columbus Dispatch – Lucas Sullivan | Published: 10/2/2015
Lobbyist John Raphael agreed to plead guilty extortion for pressuring a traffic-camera company to make more than $70,000 in campaign contributions to officials in Columbus and Cincinnati. He told federal officials he warned Redflex Traffic Systems that it would lose out on contracts with the cities if it did not make the donations. Raphael then made the contributions to the unnamed officials through himself, family members, friends, and business associates. Former Redflex Chief Executive Officer Karen Finley has pleaded guilty to funneling campaign contributions to officials in the two cities between 2005 and 2013. Finley’s plea agreement said contributions intended for Columbus officials were given to the Franklin County Democratic Party and Ohio Democratic Party.
Pennsylvania – House Passes Legislation to Increase Lobbying Fines
Pennsylvania Business Daily; Staff – | Published: 10/7/2015
The Pennsylvania House passed legislation to increase fines for lobbying violations. House Bill 1348 would increase the maximum penalty from $2,000 to $4,000. It also increases the maximum penalty under current law for negligent failure to report, in varying increments over time. The bill also would require all disclosure filings to be posted on the Department of State’s website within seven days of receipt. It now goes to the state Senate.
Wisconsin – GOP Bills Would Hike Contribution Limits, Split GAB into Two Agencies
Milwaukee Journal Sentinel – Patrick Marley | Published: 10/7/2015
Republican lawmakers formally unveiled a plan to disband the Wisconsin Government Accountability Board (GAB), calling it a well-intentioned experiment that failed. The bill would split the GAB into two separate commissions, one regulating ethics laws and the other covering elections. It would be similar to the system the GAB replaced in 2007. Members would be partisan appointees, evenly split between Republicans and Democrats. GOP lawmakers also introduced a campaign finance bill that would double how much donors can give to candidates. It would also rewrite laws that are out of step with a host of state and federal court rulings that have loosened campaign finance restrictions.
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.
October 2, 2015 •
News You Can Use Digest – October 2, 2015
National: Outside Groups Playing Bigger Role in 2015 State Elections Center for Public Integrity – Liz Essley Whyte and Ashley Balcerzak | Published: 10/1/2015 Independent groups are playing a much larger role in state elections than a year ago, shows a Center for […]
National:
Outside Groups Playing Bigger Role in 2015 State Elections
Center for Public Integrity – Liz Essley Whyte and Ashley Balcerzak | Published: 10/1/2015
Independent groups are playing a much larger role in state elections than a year ago, shows a Center for Public Integrity analysis of television advertising data. Though this year’s races are often drowned out by the hyperbole surrounding the 2016 presidential candidates, the growing role of independent political groups in state races tells a broader tale of their influence up and down the ballot, from governors’ races to state senate elections. With outside organizations playing a larger role in state elections, voters may not know who is behind the most vitriolic ads they see. Some of the groups do not have to disclose their donors, and some use alternate names that obscure their identities.
When Lobbyists Collide
Politico – James Panichi | Published: 9/25/2015
There is the perception that European lobbyists are as subtle and sophisticated as their American counterparts are brash and willing to step on toes to achieve their goals. But some experts say any real differences in the approaches are overstated and often easily overcome. What has long been billed as a clash of civilizations may simply be the result of smart professional adapting to different institutional ecosystems.
Federal:
Big Donors Seek Larger Roles in Presidential Campaigns
New York Times – Ashley Parker | Published: 9/29/2015
In an election cycle that is already on track to break spending records, and with few limits on contributions to super PACs and other outside groups, wealthy donors have never been more important. No longer satisfied with sitting on the sidelines and writing big checks, many of them are eager to play larger roles in the campaigns. They expect their views to be heard quickly and their concerns taken seriously, sometimes creating headaches and potential awkwardness for the campaigns and super PACs, which must tend to the contributors and their seemingly endless suggestions and questions.
FEC Employees: A bedraggled lot
Center for Public Integrity – Dave Levinthal | Published: 9/28/2015
A survey showed FEC employees, a generally unhappy lot for years, are even more unsatisfied with their jobs than before. The Federal Employee Viewpoint Survey’s satisfaction index places the agency near the bottom of 41 small agencies ranked. Three rank-and-file FEC employees interviewed told a similar story about agency morale: that it is bad and getting worse. The staffers’ primary complaint is that FEC employees often do not feel as if their work is valued by agency leaders, if it is acknowledged at all. Just 32 percent of employees responding to the survey said they were satisfied with the agency as an organization. Even fewer, 30 percent, said they would recommend people work there. The FEC fared marginally better in terms of employee pay satisfaction and personal job satisfaction.
House Speaker John Boehner to Resign at End of October
Washington Post – Mike DeBonis and Paul Kane | Published: 9/25/2015
House Speaker John Boehner will resign from Congress at the end of October. He has struggled from almost the moment he took the speaker’s gavel in 2011 to manage the challenges of divided government and to hold together his fractious and increasingly conservative Republican members. Most recently, Boehner was trying to craft a solution to keep the government open through the rest of the year, but was under pressure from a growing base of conservatives who told him that they would not vote for a bill that did not defund Planned Parenthood. Several of those members were on a path to remove Boehner as speaker, though their ability to do so was far from certain.
From the States and Municipalities:
California – Gun Discounts for LAPD Unit May Have Violated Ethics Rules
Los Angeles Times – Kate Mather | Published: 9/25/2015
Los Angeles police officers in a unit that evaluated Smith & Wesson handguns for a new department contract used their relationship with the company to privately purchase discounted pistols for members of the unit, a possible violation of city ethics rules. Although the unit’s officers were allowed to purchase various pistol models and calibers, the report found that the average discount for Smith & Wesson M&P 9-millimeter handguns was about $125 to $130 off the already reduced price of $455 usually offered to law enforcement officers. Ethics rules prohibit city employees from trying “to create or attempt to create a private advantage or disadvantage, financial or otherwise, for any person.” In addition, employees who are required to file statements of economic interest are not allowed to solicit gifts or accept gifts of more than $100 from a “restricted source.”
Indiana – Indiana Rep. Jud McMillin Resigns after Sex Video Emerges
USA Today – Tony Cook and Chelsea Schneider (Indianapolis Star) | Published: 9/30/2015
House Majority Leader Jud McMillin abruptly resigned after a sexually explicit video was sent via text message from his cellphone. It is unclear who sent the text or how broadly it was distributed. McMillin had texted multiple people stating that his cellphone had been stolen and apologizing for messages they may have received from his number. It is the second sex-related scandal to rock the Indiana House this year. Rep. Justin Moed apologized earlier this year after a website exposed his sexting activities with Sydney Leathers, the woman at the center of the Anthony Weiner scandal.
Iowa – Judge Upholds Iowa Rule on Corporate Spending in Campaigns
Quad City Times; Associated Press – | Published: 9/29/2015
U.S. District Court Judge Robert Pratt upheld an Iowa law that requires the boards of corporations and labor unions to approve any money they spend to influence elections. Pratt ruled the requirement does not violate the right to free association or illegally restrain speech. He said it ensures the integrity of the political system by letting the public know the spending is backed by the group and not “just an individual with access” to its bank account.
Massachusetts – Massachusetts Public Official Financial Records Obscured by State Law
MassLive – Dan Glaun | Published: 9/25/2015
While Massachusetts lawmakers, state officials, and other policy-makers are required to report the details of their property and financial holdings each year, the public does not have ready access to those disclosures. The state’s ethics law includes a quirk that can deter access to what are records designed to inform the public: all requests must be accompanied by personal identification and are forwarded to the official whose finances are being inspected. In practice, this means sending the State Ethics Commission individual forms for each statement, along with a copy of the requester’s license. It also means no online access to the statements, and no access whatsoever for residents unwilling to alert their representatives to their curiosity into those officials’ personal finances.
Michigan – Are State Lawmakers Running on Your Dime? Courser, Gamrat Staffs Weren’t the Only Ones Blurring That Line
MLive – Emily Lawler | Published: 9/29/2015
State law, supervisors, and Michigan House rules ask staffers to walk a fine line between official and political business. But it is a line that sometimes blurs. It is not unusual for staff members to serve an official, state-paid role while doing campaign work like knocking doors after hours, or clocking out for a few minutes to do a political task during normal House business hours, according to interviews with former employees. There are also House staffers who run substantial side businesses, collecting a state salary but doing thousands or hundreds of thousands of dollars’ worth of political business.
New Jersey – Tangled Web Surrounds United’s Aborted Atlantic City Routes
New York Times; Associated Press – | Published: 9/27/2015
Desperate to draw visitors to Atlantic City, New Jersey officials gave United Airlines more than $100,000 in incentives to fly to the seaside resort for at least a year. Then, when United abruptly canceled the money-losing routes eight months later, the officials appointed by Gov. Chris Christie decided not to enforce a contract provision that required the airline to repay the money. The Atlantic City flights and the debt forgiveness are just two elements of the tangled relationships between the Christie administration, the Port Authority of New York and New Jersey, and United Airlines – New Jersey’s eighth-largest employer. For instance, it was a public agency headed by Christie’s Transportation Commissioner Jamie Fox, a former United lobbyist, that forgave the airline’s debt.
New York – Power in Money: When is lobbying in N.Y. not lobbying?
Binghamton Press and Sun-Bulletin – Joseph Spector | Published: 9/27/2015
As lobbying spending in New York increased from $144 million in 2005 to $226 million in 2015, so too has the sophistication of the campaigns. No longer is the key to success solely hiring a lobbying firm to stroll the hallways trying to drum up votes. It requires a broad media strategy to win over lawmakers in their districts and in Albany. A review of records shows public-relations firms have collected more than $3 million since 2010 from political campaigns and then worked on efforts to promote key issues before the Legislature through coordinated lobbying efforts. PR firms that can offer a cache of services to public officials and private companies are the new frontier, and state laws have yet to keep up.
New York – U.S. Investigating Contract Awards in Buffalo Turnaround Project
New York Times – Susanne Craig, William Rashbaum, and Thomas Kaplan | Published: 9/27/2015
Federal investigators subpoenaed the State University of New York Polytechnic Institute and Empire State Development in a probe of Gov. Andrew Cuomo’s program to revitalize Buffalo’s economy. U.S. Attorney Preet Bharara’s office has been examining how the government-funded projects were awarded, and whether state elected officials played a role in choosing who would benefit from the major infusion of funds. SUNY Polytechnic Institute has played a central role in administering the governor’s effort and Empire State Development, the state’s economic development agency, is providing funding for the program.
North Carolina – NC Primaries Officially on March 15 with Signing
Raleigh News & Observer – Gary Robertson (Associated Press) | Published: 9/30/2015
North Carolina will hold its primary elections on March 15 next year under a bill signed into law by Gov. Pat McCrory. The new law allows state House and Senate caucuses to create “affiliated party committees” that can raise money to support legislative candidates without going through the state party operations. Supplemental legislation approved by lawmakers makes clear the caucus committees could only spend money to support House or Senate candidates, depending on the group. The measure also allows the creation of similar affiliated committees jointly held by members of the Council of State from the same party. Council members include the governor, lieutenant governor, and other statewide elected officials. None of the groups could raise money from lobbyists during the legislative sessions.
South Carolina – Capitol Gains: SC politicians use office to pad pockets
Center for Public Integrity – Tony Bartelme and Rachel Baye | Published: 9/25/2015
An investigation found South Carolina lawmakers and candidates used campaign accounts, reimbursements from state government, and gifts from special interests to pay for car repairs, football tickets, male-enhancement pills, and other questionable items. The inner workings of this cash network typically remain hidden unless prosecutors subpoena questionable receipts and other evidence locked away from public view, as happened in the case of former House Speaker Bobby Harrell. His conviction for misusing campaign money to pay for his private plane left many in the capital wondering whether other lawmakers would be charged. At least one active criminal investigation is underway, and a handful of legislators have been mentioned in a State Law Enforcement Division report.
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.
September 25, 2015 •
News You Can Use Digest – September 25, 2015
Federal: ‘Lobbying’ Firm Raises More Questions than Answers The Hill – Megan Wilson | Published: 9/24/2015 The DG Group appears to have all the trappings of a Washington lobby firm. Featuring images of the Capitol dome and promises of inside access, its website […]
Federal:
‘Lobbying’ Firm Raises More Questions than Answers The Hill – Megan Wilson | Published: 9/24/2015
The DG Group appears to have all the trappings of a Washington lobby firm. Featuring images of the Capitol dome and promises of inside access, its website advertises a “scalable lobbying and global advocacy consultancy firm” with a track record of success. But much of the site is phony. It uses text lifted from the BGR Group, the lobbying firm founded by former Mississippi Gov. Haley Barbour. The DG Group origin statement includes a paragraph from the website of Mercury, a global public relations firm with a Washington office. Photographs of DG Group lobbyists appear to be taken from PR websites and stock-photo archives. One of the people pictured as part of the firm’s leadership is a professor at Duke University’s Divinity School. Another is a comedian based in San Diego.
Political Parties Go after Million-Dollar Donors in Wake of Looser Rules
Washington Post – Matea Gold and Tom Hamburger | Published: 9/19/2015
The Republican National Committee is asking donors for $1.34 million per couple this election cycle. Democratic contributors, meanwhile, are being hit up for even more, about $1.6 million per couple, to support the party’s convention and a separate joint fundraising effort between the Democratic National Committee and Hillary Clinton’s campaign. In return, elite donors are being promised perks such as exclusive retreats with top party leaders and VIP treatment at the nominating conventions. Just four years ago, the most a donor could give a national political party was $30,800. The dramatic rise has been driven by the U.S. Supreme Court’s McCutcheon decision that did away with a cap on how much a political donor could give in an election cycle, and an expansion of party fundraising tucked into a recent appropriations bill.
Scott Walker’s Demise Shows Limits of ‘Super PAC’ Money Model
New York Times – Nicholas Confessore | Published: 9/22/2015
The super PAC backing Scott Walker was on pace to raise as much as $40 million by the end of the year, but Walker abruptly ended his campaign for the Republican presidential nomination largely because he was out of cash. His withdrawal from the GOP primary, like that of former Texas Gov. Rick Perry, highlights the limitations of the new fundraising model. Super PACs cannot pay rent, phone bills, salaries, or ballot access fees. They are not entitled to the preferential rates on advertising that federal law grants candidates, forcing them to pay far more money than candidates must for the same television and radio time. The fates of Walker and Perry hint at the systemic dangers of the super PAC-driven financial model on which virtually the entire Republican field has staked its chances.
From the States and Municipalities:
California – State Panel Outlaws ‘Dark Money’ in California Political Campaigns
Los Angeles Times – Patrick McGreevy | Published: 9/17/2015
The California Fair Political Practices Commission will now require out-of-state nonprofits to disclose their donors when they oppose or support a ballot measure or candidate through a federal PAC. The move came in the wake of fines levied against two Arizona nonprofits after they refused to reveal their donors behind two campaigns. The commission also voted to improve its program that identifies the top ten contributors to ballot measures on the its website. If one of the top ten donors is a group with a generic name that does not indicate who is behind it, the new rules would require it to disclose its top two contributors.
Colorado – Denver Gives Red light to Inspectors Consulting for Marijuana Industry
Denver Post – Jon Murray | Published: 9/23/2015
City inspectors for marijuana licensing in Denver asked the Board of Ethics for its blessing to work as paid consultants to the cannabis industry elsewhere. The board’s answer was a resounding no. Its advisory opinion cites concerns about potential conflicts-of-interest and bad appearances, saying such work would violate the city’s ethics code. Legislation passed this year soon will bar any work or consulting for the marijuana industry until six months after an employee has left his or her state job. The inspectors’ request reflects some remaining uncertainty as Denver and Colorado traverse the new landscape of legal recreational marijuana.
Florida – Corcoran Lobbies for Lobbyist Rules
Lakeland Ledger – Lloyd Dunkelberger | Published: 9/20/2015
Republicans elected Rep. Richard Corcoran as the next speaker of the Florida House, and he immediately laid out the most ambitious set of lobbying reforms that the state capital has seen in a decade. Corcoran, whose brother, Michael, is a prominent Capitol lobbyist, said the public is fed up with how money and political backscratching is controlling the agenda from Washington to Tallahassee. “The enemy is not the special interests; the enemy is not the press; the enemy is not any of that stuff. The enemy has always been and will always be us,” Corcoran told House members.
Kentucky – GOP State Senator Suing to Overturn Kentucky Laws Limiting Campaign Donations
Lexington Herald-Leader – John Cheves | Published: 9/23/2015
Kentucky Sen. John Schickel and two Libertarian candidates are suing to overturn state laws limiting campaign donations to $1,000 and prohibiting gifts to legislators from lobbyists. They also want the court to strike down rules prohibiting lobbyists from donating money to legislators or legislative candidates and that bar the employers of lobbyists from contributing while the General Assembly is in session. They say the laws violate their constitutional rights to free speech and equal protection by restricting their access to people who want to help them. But state regulators say the laws are meant to prevent bribery at the Capitol. Most were enacted after Operation BOPTROT, an FBI investigation in 1992 that exposed 15 current or former legislators who sold their votes.
Michigan – Kilpatrick Pal Gets 11 Years in City Pension Scandal
Detroit News – Robert Snell | Published: 9/21/2015
Former Detroit Treasurer Jeffrey Beasley was sentenced to 11 years in prison for taking bribes and kickbacks in a scheme that cost the city’s pension funds $97 million in losses. Beasley, who was Kwame Kilpatrick’s fraternity brother and a pension trustee while his friend was mayor, received the third-longest sentence of anyone targeted in the FBI’s decade-long corruption probe that netted 38 convictions. Beasley and Kilpatrick were both trustees to the pension funds. The federal government says the pair accepted lavish gifts – including private jet travel, trips and golf outings – from an investment adviser to the city’s pension funds in exchange for favoritism before the pension board.
Missouri – Missouri Legislators Serve Hors d’Oeuvres, Lobbyists Pass the Envelopes
St. Louis Post-Dispatch – Kevin McDermott | Published: 9/20/2015
On the eve of the one-day veto session of the Missouri Legislature, and for a few hours on the morning of the session, about 60 of lawmakers hosted or co-hosted 18 separate campaign fundraising events in Jefferson City. The attendees are not charged admission or a per-plate fee. Rather, they hand over checks at their own discretion as they enter. Most are lobbyists representing special interests whose fates the lawmakers can decide with their votes. “At the end of the day, checks are going to come in either way; this is a just a chance that they get to hand it to us instead of putting it in a P.O. Box. Everybody does it,” said Rep. Caleb Rowden.
New York – William Boyland Jr., Ex-New York Assemblyman, Gets 14-Year Sentence for Corruption
New York Times – Nicholas Casey | Published: 9/17/2015
Former New York Assemblyperson William Boyland, Jr. was sentenced to 14 years in prison and ordered to pay more than $325,000 for using his public post for personal gain. He was arrested in 2011, weeks after being acquitted in an unrelated bribery case, and charged with accepting bribes in exchange for political favors during a five-year period starting in 2007. In one instance, the authorities said at trial, Boyland funneled $200,000 of public money for the elderly to a nonprofit organization that he controlled and used the money to pay for events promoting his campaign, such as a boat cruise and “Team Boyland” T-shirts. He was also convicted of seeking reimbursement for more than $70,000 in false travel expenses.
Ohio – Disclosure Rules for Gifts Vague for Ohio’s Local Politicians
Columbus Dispatch – Lucas Sullivan | Published: 9/21/2015
Ethics has become a top issue in the races for Columbus City Council and mayor. The FBI is investigating the city’s red-light-camera contracts, and Councilperson Michelle Mills stepped down unexpectedly after questions were raised about the trip she and three other council members took with lobbyist John Raphael last year to the Big Ten championship football game. A Columbus Dispatch review found the disclosure rules for Ohio’s elected officials at the municipal level are vague and do not require complete disclosure. For example, unlike at the state level, lobbyists do not have to disclose their financial activity at the municipal level.
Ohio – Ohio Judge Loses Fundraising Challenge
Courthouse News Service – Lorraine Bailey | Published: 9/21/2015
An appeals court ruled the strict limitations that state judges in Ohio face on campaign fundraising do not violate the First Amendment. Colleen O’Toole is a candidate in the 2016 Ohio Supreme Court election. Her campaign claimed the state Code of Judicial Conduct was doing its best to keep her campaign grounded by prohibiting judicial candidates from personally soliciting campaign contributions unless they are speaking to a general audience of at least 20 people, and by making candidates legally responsible for the actions of their campaign committees, along with other restrictions. Sitting Ohio Supreme Court judges may have campaign funds left over from a prior judicial race that they can use to support their candidacy at any time, O’Toole said. But the appeals court affirmed the code of conduct, and held the rules are not the cause of the disparity that O’Toole’s campaign committee complains of.
Pennsylvania – Donations by Philly Sheriff’s Top OT Earners Raise Eyebrows
Philadelphia Inquirer – Claudia Vargas | Published: 9/20/2015
Nearly all the top recent earners of overtime in Philadelphia Sheriff Jewell Williams’ office had donated to his campaign fund. Williams said the contributions, typically $100 or $125 a year, reflected employees’ satisfaction with his work. In the fiscal year that ended June 30, records show 21 deputies with salaries anywhere from $58,000 to $76,000 earned enough overtime to boost their pay well into six figures. Most deputies who received little or no overtime in the most recent fiscal year did not donate to the campaign fund. Williams’ chief finance officer, Benjamin Hayllar, said: “There’s no quid pro quo here.”
Pennsylvania – Pa. Supreme Court Suspends Kane’s License
Philadelphia Inquirer – Angela Couloumbis and Craig McCoy | Published: 9/21/2015
The Pennsylvania Supreme Court ordered the suspension of the law license of state Attorney General Kathleen Kane, a step that could set up a Senate vote to remove her as she faces criminal charges. The unanimous order by the court could also prompt a legal challenge from Kane. In the meantime, the order has created the complication of leaving the state’s top law enforcement official, who is in charge of a 750-employee office and a $93 million budget, without the ability to act as a lawyer, at least temporarily. The order came after Montgomery County authorities arrested Kane on accusations she had leaked secret investigative information to a newspaper reporter and then lied about it under oath. She was charged with perjury, obstruction, and other counts.
Washington – State’s Disclosure Commission Names Tacoma Lawyer as New Director
Everett Herald – Jerry Cornfield | Published: 9/23/2015
Evelyn Lopez was chosen as the new executive director of the Washington Public Disclosure Commission. Lopez, a former assistant state attorney general, will take the helm as the commission looks to upgrade its technology to make it easier for the public to track the flow of money in campaigns through the agency’s online database. Lopez did not reveal any initiatives she wants to launch immediately but said there are a lot of issues out there related to the financing of campaigns. “If you’re a politician and you’re asking people to give you their hard earned money, you’ve got to be honest about how it is used; I am absolutely committed to open government and an informed electorate,” Lopez said.
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.
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