August 21, 2015 •
News You Can Use Digest – August 21, 2015
Federal: Facing Money Gap, Hillary Clinton Slowly Warms to ‘Super PAC’ Gifts New York Times – Amy Chozik and Eric Lichtblau | Published: 8/17/2015 Republican presidential candidates have gained a near monopoly on donors of $1 million or more: 56 donors […]
Federal:
Facing Money Gap, Hillary Clinton Slowly Warms to ‘Super PAC’ Gifts
New York Times – Amy Chozik and Eric Lichtblau | Published: 8/17/2015
Republican presidential candidates have gained a near monopoly on donors of $1 million or more: 56 donors gave at least that much for a total of $124.2 million, outgiving Democrats’ biggest donors by about 12 to one. A single GOP contributor, Robert Mercer, a hedge fund magnate who gave $11.3 million, surpassed all of the million-dollar donors supporting Hillary Clinton, combined. Clinton’s allied super PACs, mindful that to resist the tide is to drown, are soliciting giant donations in earnest now, with her blessing. But the disparity, which has worried many Democrats, also has to do with the ambivalence, or outright disdain, that Clinton’s donors say they feel, and that some say they have picked up from her, about the role that super PACs should play.
Hillary Clinton 2016: Campaign wants donors to pay for their own food, parking
Politico – Kenneth Vogel | Published: 8/18/2015
Hillary Clinton’s campaign wants donors to pay for their own food and valet parking at fundraising events. The request filed with the FEC sketches out a novel plan under which the campaign would shift some fundraising costs to donors, without counting against their contribution limits. Campaigns usually either pay such costs directly or, in the case of smaller events in donors’ homes, allow hosts to contribute food, drink, and parking costs. But when hosts provide services and the tally exceeds $1,000, the FEC interprets those costs as in-kind donations because they are considered “necessary expenses incurred to provide an inducement for the making of a contribution.” And those in-kind contributions count against donors’ $2,700 limit for the primary election.
K Street Betting on Hillary
The Hill – Megan Wilson | Published: 8/20/2015
While many lobbyists are holding their pocketbooks in the early stages of the 2016 election cycle, Hillary Clinton received at least $625,703 from 316 registered lobbyists and corporate PACs during the first half of the year. Former Florida Gov. Jeb Bush ranks as a distant second in the influence industry, collecting $444,500 from 140 lobbyists. The donations are a shift from the last couple election cycles, especially on the Democratic side. Barack Obama made campaign promises in 2008 and 2012 not to take money from registered lobbyists, in addition to vowing to ban them from the administration, so the early donations signal K Street hopes to be back in good graces when the next administration takes over the White House.
From the States and Municipalities:
California – $240 Million Education Contract Illustrates State Lobbying Loopholes
KQED – Marisa Lagos | Published: 8/13/2015
Critics say California’s murky disclosure laws make it nearly impossible to know exactly what kinds of work private companies do to influence how thousands of state government contracts are awarded, including whether those same companies seek advantages with behind-the-scenes lobbying. A bill moving through the Legislature would force disclosure around lobbying for state contracts and put California in a group of just 18 states that require disclosure of procurement lobbying.
Florida – Florida Prison Problem Complicates Redistricting
Bradenton Herald – Jeremy Wallace | Published: 8/18/2015
Florida’s prison population is becoming a point of contention in the state Legislature’s attempt to redraw congressional districts. The last Census counted more than 160,000 people in correctional facilities, and they cannot vote. But they can skew how districts are drawn, and ultimately who represents the state in the U.S. House. The federal government has required states to count prisoners as residents of the towns where they are held, not where they are from. Peter Wagner, executive director of the Prison Policy Initiative, said counting prisoners where they are incarcerated means states are giving people living in communities with prisons more voting power and representation than they should have when it is clear inmates are not part of the town and counties they are counted in.
Indiana – Waivers from State Ethics Laws on the Decline
Indianapolis Star – Chelsea Schneider | Published: 8/17/2015
State records show Indiana officials have been issuing fewer waivers that would let state employees take related jobs in the private sector before a yearlong wait. Data show about 10 were granted each year over the past decade, but just one has been allowed so far this year. They could continue to decline because the General Assembly tightened the process by requiring all waivers to go before the Indiana State Ethics Commission. Before the law changed, department heads had wide discretion in determining whether to lift restrictions.
Missouri – Missouri House Is Developing New Intern Rules to Prevent Sexual Harassment
Kansas City Star – Jason Hancock | Published: 8/17/2015
The Missouri House is working on new intern rules aimed at preventing sexual harassment after recent scandals led two legislators to resign. Tighter rules for administering internships are part of an early draft of the policy, which also calls for the establishment of an ombudsman so interns could report problems. The scandals also have brought renewed attention to legislative ethics reform. To many lawmakers, Missouri’s status as the only state with no campaign contribution limits, no caps on lobbyist gifts, and no restrictions on lawmakers becoming lobbyists contributes to an anything-goes atmosphere underlying the sexual harassment of interns.
North Carolina – Deeper Probe of NC Video Sweepstakes Money Sought
Raleigh News & Observer – Craig Jarvis and Anne Blythe | Published: 8/20/2015
Millions of dollars was spent recent elections in a futile attempt to keep the video sweepstakes industry legal in North Carolina, with much of the spending directed by a man later charged in Florida with racketeering. The free-wheeling spending on politicians, lawyers, and lobbyists has raised suspicions, although one probe by the state elections board found no campaign finance violations. Democracy North Carolina, whose complaint prompted the two-year elections board inquiry, now wants the U.S. attorney and the Wake County district attorney to determine whether laws against corruption, bribery, or other offenses were broken, and for authorities to take another look at potential election law violations.
Ohio – Was Council Members’ Football Trip Worth More Than $250?
Columbus Dispatch – Lucas Sullivan | Published: 8/14/2015
The trip that four Columbus City Council members took with a lobbyist to watch the Big Ten Championship football game would have cost about three times the $250 they paid, a travel expert and stadium officials say. Ohio ethics laws state that if the difference between the cost paid for the trip and the actual fair market value exceeds $75, officials must pay the difference or disclose it as a gift on their financial-disclosure forms. The four council members who went –Andrew Ginther, Shannon Hardin, Michelle Mills, and Eileen Paley – all eventually paid $250 to watch Ohio State beat Wisconsin. Paley and Hardin disclosed the trip on their ethics forms, but Ginther and Mills did not.
Oklahoma – Ethics Commission Votes to Suspend Rules after Lawsuit
Albany Times Union; Associated Press – | Published: 8/14/2015
Some state property can be used again for political fundraising and distribution of campaign materials after the Oklahoma Ethics Commission decided to suspend rules against these activities. The action came after the state Democratic Party filed a federal free speech lawsuit against the panel.
Oklahoma – Oklahoma Sen. Rick Brinkley Pleads Guilty to Fraud Charges after Stealing More than $1.8M from BBB
The Oklahoman – Nolan Clay and Rick Green | Published: 8/20/2015
State Sen. Rick Brinkley pleaded guilty to federal fraud charges and resigned from the Oklahoma Legislature. He was accused of embezzling $1.8 million as head of the Better Business Bureau of Tulsa and failing to report about $148,390 in income on his 2013 tax return. A civil lawsuit filed by the Better Business Bureau alleged Brinkley used its money to pay “his mortgage, pool cleaner, personal credit card invoices, and to support a hidden gambling habit.” Brinkley was on track to become the president pro tem of the Senate in two years. His future began to unravel after questions were raised about a $49,693 check he had written from his campaign account to the Better Business Bureau.
Pennsylvania – Lobbyist Spending in Harrisburg Trending Upward
Pittsburgh Post-Gazette – Chris Potter | Published: 8/16/2015
In 2007, when Pennsylvania lobbyists began reporting their activity, they spent $84,175,726. By 2014, the total was $106,283,183. The Marcellus Shale Coalition is the state’s most active lobbying concern. It reports spending just under $14.1 million since 2010. A handful of individual companies reported their own million-dollar expenditures. Six of Pennsylvania’s top 10 lobbying interests work in health care or insurance. “The ideal situation would be if representatives were hearing from citizens, rather than people paid to influence them,” said Mark Singel, a former Pennsylvania lieutenant governor who now works as a lobbyist for the Winter Group.
Wisconsin – Audit of Wisconsin Elections Board Finds No Major Problems with Handling of Investigations
Minneapolis Star Tribune – Scott Bauer (Associated Press) | Published: 8/20/2015
A Legislative Audit Bureau report found no major problems with the way the Wisconsin Government Accountability Board (GAB) handles complaints. “It puts to rest any questions as to whether the six board members exercise independent judgment when they make decisions about complaints, investigations, and penalties,” said GAB Director Kevin Kennedy. As much as Kennedy may wish that to be the case, Republicans who control the Legislature, along with Gov. Scott Walker, have said for months they plan to make significant changes to the board, including possibly doing away with it and starting over. The audit follows a more comprehensive one released in December that looked at the GAB’s entire operation, not just investigations. In that report, the bureau did not recommend that the GAB be overhauled or dismantled.
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.
August 14, 2015 •
News You Can Use Digest – August 14, 2015
National: Corruption Accusations Paint Troubling Picture of Politics in Philadelphia Region Philadelphia Inquirer – Jonathan Tamari and Chris Palmer | Published: 8/9/2015 The recent indictments of public officials on corruption charges paint a damning picture of politics in Pennsylvania and New […]
National:
Corruption Accusations Paint Troubling Picture of Politics in Philadelphia Region
Philadelphia Inquirer – Jonathan Tamari and Chris Palmer | Published: 8/9/2015
The recent indictments of public officials on corruption charges paint a damning picture of politics in Pennsylvania and New Jersey, one that has dominated front pages with stories of wealthy campaign donors, officials using their posts for their own ends, and the alleged abuse of taxpayer dollars. Pennsylvania Attorney General Kathleen Kane, U.S. Rep. Chaka Fattah, and U.S. Sen. Robert Menendez, along with two people charged in the George Washington Bridge scandal, have all insisted they have done nothing wrong. Still, the stream of charges adds a dark chapter to two states already widely regarded as among the most corrupt in the county.
How Transparent Is Your State’s Lobbying Disclosure?
Sunlight Foundation – Jonah Hahn | Published: 8/12/2015
A review by the Sunlight Foundation of lobbyist disclosure requirements found many states fail to address the legislative flaws that create loopholes, do not provide citizens with easily accessible information, and lack stringent transparency policies. For example, the foundation said that in many states, trying to locate and view a lobbyist’s registration form is either impossible or logistically complex. In 33 states, lobbyists are not mandated to disclose their expenditures in a comprehensive fashion. The foundation ranked the states on how well each one performed on criteria such as reporting thresholds, document availability, and transparency on expenditures.
Federal:
Donors Descend on Schumer and Others in Debate on Iran
New York Times – Jonathan Weisman and Nicholas Confessore | Published: 8/12/2015
Approaching a vote on the Iran nuclear accord, tens of millions of dollars are flowing into ad campaigns and contributors leveraging access to undecided Democrats in the U.S. Senate. Donors said they did not believe any senator would vote based on threats to give or withhold money, and none admitted to giving such ultimatums. But with super PACs poised to dump tens of millions of dollars into Senate races next year, the passions of big contributors – and their ability to change a candidate’s fortunes – are a keenly felt undercurrent to the debate. Some of the biggest donors to super PACs also have strong opinions about the Iran deal and Israel’s security.
Lawrence Lessig Wants to Run for President – in a Most Unconventional Way
Washington Post – Philip Rucker | Published: 8/11/2015
Harvard professor Lawrence Lessig is launching an exploratory committee for the Democratic presidential nomination focused on his signature issue – reforming the nation’s campaign finance laws. “Jefferson’s truth, that all are created equal, has become Orwell’s meme, that some are more equal than others,” said Lessig. He said campaign finance reform is the first step toward addressing every other major issue in American politics. Lessig envisions a president that will serve with the singular goal of campaign finance reform, and step down once it is achieved to let the vice president serve out the remainder of the term. He hopes to crowd-fund $1 million by Labor Day.
New Challenge Filed to Party ‘Soft-Money’ Limits
Bloomberg BNA – Kenneth Doyle | Published: 8/4/2015
James Bopp renewed his attack on federal campaign finance law by filing suit on behalf of the Louisiana Republican Party that challenges restrictions on soft money contributions to political parties. BCRA bans soft money donations to national parties and restricts its use in federal elections by state and local parties. The limits are among the last BCRA provisions left intact following a series of court challenges to other campaign finance regulations. Last November, the Republican National Committee refused to provide an explanation when a similar case was abruptly dropped. But the move came shortly after the GOP won electoral victories that gave them majority control of both the House and Senate, and appeared to reflect a strategic shift away from such court challenges by at least some in the party.
From the States and Municipalities:
Alabama – Federal Court Upholds Alabama PAC-to-PAC Transfer Ban Law
Legal Newsline – Shaun Zinck | Published: 8/6/2015
A federal court upheld the constitutionality of Alabama’s law that bans transferring money from one PAC to another. The court found the state has a sufficiently important issue in preventing corruption or the appearance of corruption and the ban supports this interest, and the law was narrowly drawn so as to protect the state’s interest without being in violation of the First Amendment.
Florida – Trump, Gimenez Let Off Easy after Breaking Lobbying Law, Critics Say
FloridaBulldog.org – Francisco Alvarado | Published: 8/10/2015
Michael Muraswski is the advocate for the Miami-Dade Commission on Ethics and Public Trust, whose role is to prosecute people who break the county’s conflict-of-interest and ethics laws. Critics accuse Muraswski of giving a free pass to rich, powerful, and politically connected individuals who break the rules, including Donald Trump and county Mayor Carlos Gimenez.
Illinois – Illinois’ Corrupt Women
WUIS – Maureen Foertsch McKinney | Published: 8/1/2015
The term “Old Boys Network” is shorthand for the culture that breeds political corruption. A new study from the Paul Simon Public Policy Institute contends the term is gender-inaccurate. “Unsupervised, Ensnared, Relational, and Private: A Topology of Illinois’ Corrupt Women” takes a look at the women of the state who have been convicted for abusing their office. It challenges the notion that “female public officials have a deterrent effect on corruption” and examines the methods and motivations most common among female officials who have been convicted.
Michigan – Recordings: State rep asked aide to hide relationship
MLive.com – Chad Livengood | Published: 8/7/2015
Michigan Rep. Todd Courser distributed a fake e-mail that suggested he had sex with a male prostitute so he could hide his relationship with another state representative. Both lawmakers are Christian conservatives who frequently refer to their faith. Courser, a married father of four, said in an audio recording that the e-mail was intended to create a “complete smear campaign” of false claims so a public revelation about his relationship with state Rep. Cindy Gamrat would seem “mild by comparison.” The Detroit News interviews suggested the representatives used their taxpayer-funded offices to maintain and cover up their relationship.
Missouri – MEC Dismisses Complaint against Redmon
Missouri Times – Travis Zimpfer | Published: 8/11/2015
The Missouri Ethics Commission dismissed a complaint against state Rep. Craig Redmon over allegations he allowed lobbyist gifts for others to be reported as his. The commission said it found no inaccuracies in lobbyist expenditures for the past three years. The agency said it also did not find any expenditures that should have been reported to other public officials. Redmon at first was paraphrased by The Kirksville Daily Express and later told The Associated Press that he sometimes has told people to put under his name expenses that actually were made for others. He has since denied any such action. Redmon says he misspoke and was not paying attention to questions.
Montana – Campaign Finance Rules Released, Upcoming Public Hearings
Helena Independent Record – Alexander Deedy | Published: 8/6/2015
Montana Commissioner of Political Practices Jonathan Motl is putting his proposed campaign finance regulations out for public comment. A public hearing on the proposed rules will be held in Helena on September 2 and 3. Comments may also be submitted to the commissioner’s office. Motl has said the rules would allow corporate groups to spend money in campaigns, but they must say how much they are spending, where the money came from, and what it is being spent on. Motl must approve the final regulations before October 1.
Oklahoma – Democratic Party Sues Oklahoma Ethics Commission
The Oklahoman – Rick Green | Published: 8/11/2015
Oklahoma Democratic Party is suing the state Ethics Commission over new agency rules that prohibit any fundraising or distribution of election materials on state-owned property. Party officials argued the new rules are an improper restraint on free speech. The party had to call off a fund-raising activity planned for Oklahoma City Community College on July 25 after the commission “informally indicated an intention to enforce its rules,” the lawsuit said.
Pennsylvania – Montco DA Charges Attorney General Kane
Philadelphia Inquirer – Craig McCoy, Angela Couloumbis, and Jeremy Roebuck | Published: 8/6/2015
The Montgomery County district attorney filed criminal charges against Pennsylvania Attorney General Kathleen Kane in a convoluted tale of political maneuvering and retribution that threatens the career of an official who was seen until recently as one of her state’s rising stars. Kane has been accused of illegally giving grand jury documents to a newspaper in order to embarrass a critic, and then trying to cover up her actions with false testimony to a different grand jury. Kane has admitted to leaking material, but insisted it was not covered by grand jury secrecy requirements.
Rhode Island – Secretary of State Seeks Overhaul of RI Lobbying Statutes
The Associated Press – Jennifer McDermott | Published: 8/12/2015
Secretary of State Nellie Gorbea said she has questioned whether there are people and organizations lobbying in Rhode Island without registering to do so, either because they are ignoring the law or do not know about it. Because she does not have power to investigate, Gorbea now sends educational letters to people she thinks may be lobbying based on media reports. “Without proper legal investigative processes, you’re left with trying to be fairly broad in terms of outreach,” said Gorbea. She has suggested a new lobbying statute to provide a framework for investigations and hearings, and to grant her subpoena power. Lawmakers did not pass the bill during the 2015 session.
Texas – Texas Watchdog Group Calls another Political Titan to Account
New York Times – Manny Fernandez | Published: 8/6/2015
State Attorney General Ken Paxton, former Gov. Rick Perry, and ex-U.S. House Majority Leader Tom DeLay are all Texas officials who have been indicted while in office over the past decade. They also have one other thing in common: the complaints leading to their indictments were initiated by Texans for Public Justice, the low-budget, nonprofit watchdog group that Craig McDonald runs out of a basement office in Austin. Critics dispute McDonald’s claim that Texans for Public Justice is nonpartisan, saying it has used the courts to serve as a political attack machine against Republicans.
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.
August 7, 2015 •
News You Can Use Digest – August 7, 2015
National: Drunk on Power: Booze distributors ply statehouses to keep profits flowing Center for Public Integrity – Liz Essley Whyte | Published: 8/6/2015 Alcohol distribution is a $135 billion industry in the U.S. To protect the regulations that guarantee their business, […]
National:
Drunk on Power: Booze distributors ply statehouses to keep profits flowing
Center for Public Integrity – Liz Essley Whyte | Published: 8/6/2015
Alcohol distribution is a $135 billion industry in the U.S. To protect the regulations that guarantee their business, wholesalers bankroll scores of lobbyists and give millions of dollars in political contributions. Because alcohol is largely regulated at the state and local level, wholesalers aim most of their political firepower at statehouses. At least 22 states had bills in 2015 seeking to allow alcohol makers to circumvent distributors and sell their products directly to customers. They faced firm opposition because alcohol wholesaler alliances had at least 315 registered lobbyists spread across 49 states and the District of Columbia. Distributors gave about $14.6 million to state candidates, parties, and ballot issue groups in 2014.
Federal:
Limits Unclear on New Political Party ‘Slush Funds’
Center for Responsive Politics – Carrie Levine | Published: 8/3/2015
A new law allows political parties to accept more than $800,000 per person per year, compared to $97,200 under the old limits. The money technically must be used only for specific purposes, such as legal expenses and improvements to party headquarters. But the limits are murkier than they seem, with some lawyers saying the money could legally pay for some election-related costs such as opposition research and data mining. And the FEC is at an impasse over whether and how to issue rules governing the new party accounts. As a result, decisions about spending the money are pretty much up to the parties and their lawyers.
Rand Paul Super PAC Head Indicted over Alleged 2012 Campaign Finance Violations
Washington Post – Sean Sullivan and Matea Gold | Published: 8/5/2015
A supporter and onetime close adviser to U.S. Sen. Rand Paul was charged with hiding secret payments to secure the endorsement of an Iowa lawmaker during the 2012 presidential campaign of his father, former U.S. Rep. Ron Paul. Jesse Benton, who had been tapped to run America’s Liberty, a super PAC that supports Rand Paul’s presidential bid, is accused of paying more than $70,000 to former Iowa Sen. Kent Sorenson to win his support ahead of the state’s caucuses in 2012. Also charged are John Tate and Dimitrios Kesari, who worked with Benton on the 2012 campaign. The three are accused of submitting false expense reports to the FEC. Benton is also accused of lying to the FBI.
Small Pool of Rich Donors Dominates Election Giving
New York Times – Nicholas Confessore, Sarah Cohen, and Karen Yourish | Published: 8/1/2015
An analysis of FEC reports and IRS records shows the fundraising arms race has made most of the presidential hopefuls dependent on a small pool of the richest Americans. Fewer than four hundred families are responsible for almost half the money raised in the 2016 campaign. The intensifying reliance on big money in politics mirrors the concentration of American wealth more broadly. In an era when a tiny fraction of the country’s population has accumulated a huge proportion of its wealth, the rich have also been empowered by the U.S. Supreme Court’s Citizens United decision and other regulatory changes to spend more on elections.
From the States and Municipalities:
Alabama – Tom Albritton, Alabama’s New Ethics Executive Director, Wants to Be Fair, Consistent
AL.com – Mike Cason | Published: 7/31/2015
Tom Albritton, the new executive director of the Alabama Ethics Commission, said consistency is the key to applying a broadly written ethics law in a way that both guards the public’s trust and encourages good people to run for office. He said parts of the ethics law are nonspecific to the extent that it requires careful interpretation for every circumstance and event. “I think having broad language is a challenge to enforce consistently, and you can’t have a rigid set of rules that don’t work in the real world,” said Albritton.
California – Campaign Money Has MTA Board Members Missing Votes
Los Angeles Times – David Zahniser and Katie Shepherd | Published: 8/3/2015
Los Angeles Mayor Eric Garcetti recused himself from dozens of Metropolitan Transportation Authority board votes last year as he sought to comply with one of California’s most restrictive rules on campaign contributions. Politicians on the board are prohibited from participating in decisions on contracts if they have received political donations of more than $10 from the companies seeking the work. One of his appointees to the board, city Councilperson Mike Bonin, withdrew from 34 contract decisions. County Supervisor Michael Antonovich stepped aside on 19 votes. For ethics experts, the practice of missing votes poses a question: does it mean the system is working, because politicians are staying away from the decisions that affect their campaign donors? Or does it show that it is broken, because board members repeatedly miss major financial decisions?
California – Public Officials Named in New Findings from FBI Probe of ‘Shrimp Boy’ Chow
San Francisco Examiner – Jonah Owen Lamb | Published: 8/4/2015
Evidence from the prosecution of Raymond “Shrimp Boy” Chow potentially implicates a wide array of public officials in alleged bribery schemes, “pay-to-play” plots, money laundering, and bid-rigging. The federal investigation culminated in a sweeping indictment with 29 defendants. Among them was former California Sen. Leland Yee, who pleaded guilty to racketeering. Chow was charged with running a Chinese American community organization as a racketeering enterprise. A motion to dismiss the indictment included snippets of FBI reports and wiretap evidence that suggest San Francisco Mayor Ed Lee and others participated in public corruption schemes but were spared prosecution “due to their political affiliations.’
Maine – Anti-Gay Marriage Group Suffers another Loss in Bid to Conceal Donors to Maine Campaign
Portland Press Herald – Steve Mistler | Published: 8/4/2015
Maine’s highest court rejected a national group’s latest bid to shield the identities of donors who contributed to its effort to overturn the state law allowing same-sex marriage. The state ethics commission fined the National Organization for Marriage (NOM) $50,250 last year for violating campaign finance laws and ordered it to file a report revealing the names of those who supported the referendum. NOM paid the fine but asked the Supreme Judicial Court to allow it to hold off on filing the report until the court considers its appeal of the commission’s decision. The justices denied that request, saying it is unlikely the organization will be successful in its challenge of the ethics panel’s ruling.
Massachusetts – 2 Businesses Fight State Ban on Campaign Contributions
MassLive.com – Shira Schoenberg | Published: 8/4/2015
An advocacy group and two business owners asked a judge to grant a preliminary injunction temporarily halting Massachusetts’ restrictions on corporate political giving. Under the state’s current campaign finance law, businesses are not allowed to contribute directly to candidates. Unions can contribute up to $15,000 to a candidate and individuals can contribute up to $1,000. Businesses cannot establish and fund PACs that donate to candidates, even though unions can. “Government can’t pick winners and losers in the political marketplace,” Jim Manley, senior attorney at the Goldwater Institute, told reporters before the hearing.
New York – JCOPE Denies Request to Shield Abortion-Issue Donors
Capital New York – Jimmy Vielkind | Published: 8/4/2015
The Joint Commission on Public Ethics (JCOPE) rejected applications from Family Planning Advocates of New York and the state Civil Liberties Union for exemptions that would allow the groups to keep their most generous donors secret. The 2011 law that created JCOPE allows it to grant exemptions if donors to a specific group – advocacy organizations categorized as 501(c)4 groups – are likely to face “harm, threats, harassment, or reprisals” if their giving becomes known to the public. Commissioners who opposed the exemptions expressed concern that the standard of evidence in the applications, which detailed episodes of perceived threats, was insufficient.
Pennsylvania – City Adopts New Reporting Requirements for Campaign Financing
Philadelphia Daily News – Wendy Ruderman | Published: 7/31/2015
Mayor Michael Nutter signed legislation that requires non-candidate groups that fundraise for the purpose of influencing elections to submit campaign finance reports every two weeks, beginning six weeks before an election. Non-candidate groups include nonprofit organizations, corporations, partnerships, and PACs. Disclosures regarding electioneering communications, such TV ads purchased by non-candidate parties, are also required within 50 days of an election. The bill followed a Democratic mayoral primary in which a significant amount of so-called dark money was spent by independent groups to influence the race.
Pennsylvania – City’s Campaign Contribution Limits at Heart of Fattah Case
Philadelphia Inquirer – Chris Brennan | Published: 7/30/2015
U.S. Rep. Chaka Fattah had a plan as he prepared for Philadelphia’s 2007 mayoral race: raise six-figure contributions from wealthy donors and, if challenged, use the courts to overturn the city’s donation limits. The conventional wisdom in political and legal circles at the time was that those caps would not survive a legal challenge. A Philadelphia judge, as expected, overturned the limits in December 2006. Commonwealth Court put them back in a ruling that landed just six weeks before the mayoral primary. The ruling set Fattah on a course that ultimately led to his recent indictment on corruption charges as he tried to circumvent the local law.
Pennsylvania – Reading Councilman Pleads Guilty in Corruption Case
Philadelphia Inquirer – Jeremy Roebuck | Published: 8/5/2015
Reading City Council President Francisco Acosta pleaded guilty to accepting a bribe of $1,800 in return for his effort to repeal the city’s campaign finance law. Court documents do not identify the public official who offered the bribe, but said the official had the power to sign city council legislation into law. The only person with that power is Mayor Vaughn Spencer, whose home was raided in July by the FBI. “Public Official No. 1,” as court documents described the person offering the bribe, had taken campaign donations that violated city law. The official believed “his best chance of winning re-election would require keeping these contributions and raising additional funds which would be prohibited by the code of ethics,” according to the documents.
Texas – Appellate Panel Says Texas ID Law Broke U.S. Voting Rights Act
New York Times – Erik Eckholm | Published: 8/5/2015
A federal appeals court struck down Texas’s voter-identification law, ruling it violates the Voting Rights Act. Texas was allowed to use the law during the 2014 elections, thereby requiring an estimated 13.6 million registered voters to have a photo ID to cast a ballot. The ruling was a victory, although not a sweeping one, for Democrats and minority rights groups. Last year, a federal judge called the law the equivalent of a poll tax, but the three-judge panel of the Fifth U.S. Circuit Court of Appeals disagreed. Instead, it sent the law back to the lower court to consider how to fix the discriminatory effects. The state can appeal the unanimous decision to the full appeals court, or ask for a U.S. Supreme Court review.
Texas – Paxton Surrenders in Securities Fraud Indictment
Texas Tribune – Patrick Svitek | Published: 8/3/2015
Facing three felony counts of securities law violations, Texas Attorney General Ken Paxton was booked on felony securities fraud charges. The grand jury indictments show that two first-degree fraud charges were based on Paxton’s efforts in July 2011, when he was a member of the state House, to sell stock on behalf of Servergy. According to the indictments, Paxton failed to tell stock buyers that he had been compensated with 100,000 shares of Servergy stock. Paxton also said he was an investor in Servergy when he was not, the charges indicated. A third count accused Paxton of acting as an investment adviser representative without registering with the State Securities Board. Paxton is not required to leave office while he fights the charges.
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.
July 31, 2015 •
News You Can Use Digest – July 31, 2015
National: A Dream Undone New York Times – Jim Rutenberg | Published: 7/29/2015 August 6 is the 50th anniversary of the signing of the Voting Rights Act. It eliminated literacy tests and other Jim Crow tactics, and in a key provision […]
National:
A Dream Undone
New York Times – Jim Rutenberg | Published: 7/29/2015
August 6 is the 50th anniversary of the signing of the Voting Rights Act. It eliminated literacy tests and other Jim Crow tactics, and in a key provision called Section 5 required seven states with histories of black disenfranchisement to submit any future change in statewide voting law for approval by federal authorities. In 2008, for the first time, black turnout was nearly equal to white turnout, and Barack Obama was elected the nation’s first black president. Since then, however, the legal trend has abruptly reversed. The rollback of the law was the result of a little-known part of the civil rights story. It involves a largely Republican countermovement of ideologues and partisan operatives who methodically set out to undercut or dismantle its most important requirements.
Facebook Expands in Politics, and Campaigns Find Much to Like
New York Times – Ashley Parker | Published: 7/29/2015
While it is no surprise that campaigns are devoting a greater share of their budget and energy on digital initiatives, Facebook, already a major player in past cycles, has been working to expand its digital dominance in the political realm. Facebook, which has 189 million monthly users in the U.S., has pitched its tools and services to every presidential campaign in the 2016 race, not to mention down-ballot races, to showcase new features as candidates seek to reach and recruit new supporters and potential donors. Some estimate that 2016 will usher in roughly $1 billion in online political advertising, and Facebook says it is on track to increase its revenue from previous cycles.
Federal:
Billionaire Donors Bypass K Street
Roll Call – Kate Ackley | Published: 7/29/2015
The most politically generous billionaires invest almost unlimited personal resources in supporting federal candidates and super PACs. But the hedge funds and other companies that fuel their bank accounts put up a relatively small amount of cash toward disclosed federal lobbying, according to a Roll Call survey of the top 25 donors. Some of the firms founded or owned by the biggest donors leave no paper trail revealing any history of lobbying work. But even when they do not list a roster of pricey hired help from K Street, these top donors and their companies still exert influence.
D.N.C. Lifts Ban on Convention Fundraising
New York Times – Maggie Haberman | Published: 7/23/2015
The Democratic National Committee (DNC) lifted its ban on contributions from PACs and lobbyists for its convention fundraising and for the accounts it shares with presidential campaigns. Both limitations were put in place by Barack Obama, who was seeking to change the influence of money in Washington. The DNC will continue its policy of not accepting donations from PACs and lobbyists for its general fundraising operations. Allowing such contributions to the joint fundraising committee was something that Hillary Clinton’s campaign encouraged, and Congress last year eliminated public funding for the national conventions.
From the States and Municipalities:
Arkansas – Ethics Panel Reaffirms Past Ruling on Ticket Sales to Legislators
Arkansas News – John Lyon (Arkansas News Bureau) | Published: 7/24/2015
Regardless of whether the preferential treatment comes from the University of Arkansas itself or from the Razorback Foundation, lawmakers cannot get access to Razorback tickets unless they pay the same fees as everyone else, the state Ethics Commission ruled. University officials had argued the school and its athletic booster club are separate entities and restrictions on gifts from lobbyists do not apply to the foundation. The commission disagreed.
Missouri – McCaskill Calls for Advocacy Group to Give Missouri Capital Interns ‘Someone to Talk to’
KCUR – Jo Mannies | Published: 7/29/2015
State Sen. Paul LeVota resigned recently after being accused of sexually harassing an intern, but U.S. Sen. Claire McCaskill contends the real issue is that little has changed. She was an intern at the Missouri Capitol 41 years ago. “I am bitterly disappointed that the climate has not changed significantly since 1974,” McCaskill said, recalling her own experiences with off-color jokes and unsolicited sexual comments. And she remembers the self-doubt of what she should do. That is why McCaskill is suggesting that a special advocacy organization be set up to simply give interns a non-threatening source to talk to, where they could get constructive information about how to file a formal complaint and even hire a lawyer.
Missouri – Missouri’s ‘Wild West’ Campaign-Finance Rules Are Making Candidates Look Terrible
National Journal – Karyn Bruggeman | Published: 7/23/2015
A handful of states have no limits on who can donate to candidates or how much, but Missouri is the only one with the combination of no limits on campaign donations or lobbyist gifts, and no laws on the books to prevent elected officials from immediately becoming lobbyists after leaving office. For candidates looking to raise money, the laissez-faire approach is a boon. But when it comes time to explain to voters where that cash came from and what it was for, candidates are often left without good answers. That has been particularly true of the start of the state’s 2016 governor’s race.
Nebraska – Number of Groups Hiring Nebraska Lobbyists Reaches New High
Seattle Post-Intelligencer – Grant Schulte (Associated Press) | Published: 7/28/2015
Common Cause Nebraska said the number of groups hiring lobbyists rose to a record 527 this year, from 506 in 2014. The groups spent nearly $14.1 million last year to influence lawmakers, most of which went to lobbyists. The report calls for more specific disclosure requirements, including a breakdown of lobbyist expenses per elected official and creating a separate reporting category for food and beverages. Nebraska should prohibit lobbyists from bundling campaign contributions and ban all in-session fundraisers.
Nevada – Nevada Lobbyists Spend Record Amount on Legislators
Las Vegas Review-Journal – Sandra Chereb | Published: 7/24/2015
Lobbyists in Nevada spent $153,079 to entertain and influence state lawmakers during this year’s legislative session. The record amount is up nearly 26 percent over the $121,594 reported by lobbyists two years ago. Lobbyists are required to report how much they spend on gifts, group events, and entertainment provided to lawmakers for each month of the session. The entertainment category includes cost of meals and beverages when a lobbyist picks up the tab. The cost of group events – receptions, luncheons, dinners, or other events where every legislator is invited – totaled $149,777. Individual entertainment expenses were $2,176.
Ohio – City Council Officials Got Box Seats at Ohio State Game
Columbus Dispatch – Lucas Sullivan | Published: 7/26/2015
Days after John Raphael abstained from voting on a food-and-beverage contract for the Greater Columbus Convention Center because of a conflict-of-interest, he escorted four Columbus City Council members to the Big Ten Conference Championship football game. Raphael said he removed himself from the convention authority’s food-vendor selection process because he represented Centerplate, the company that was then bidding for and now holds the contract, as a statewide lobbyist. Raphael and his relationships with elected officials have come under scrutiny after he was implicated in the bribery scheme involving Redflex, the company that had the contract for red-light cameras in Columbus.
Oregon – Ethics Reforms after Kitzhaber: Going slow means getting it right, Oregon lawmakers argue
Portland Oregonian – Denis Theriault | Published: 7/29/2015
The day before Gov. John Kitzhaber quit amid influence-peddling allegations, Republicans in the Oregon Legislature seized on the scandal to introduce sweeping ethics reforms. They wanted to set strict rules for the governor’s partner, allow lawmakers to impeach statewide officials, and increase access to public records, among other changes. But when lawmakers adjourned in July, none of those ideas had advanced. Only three milder bills drafted by Gov. Kate Brown became law. Some Republicans say Democratic leaders played politics to keep the state’s minority party from scoring points. But other officials, including Brown, say they are intentionally taking it slow, especially in the absence of criminal charges spelling out whether Kitzhaber and former first lady Cylvia Hayes broke any laws.
Pennsylvania – Pa. Congressman Fattah Indicted on Corruption Charges from 2007 Mayor’s Race
Washington Post – Paul Kane and Mike DeBonis | Published: 7/29/2015
U.S. Rep. Chaka Fattah and four associates were indicted on racketeering conspiracy charges, accused of misusing hundreds of thousands of dollars in taxpayer, charity, and campaign funds. Fattah is accused of misusing money from his unsuccessful 2007 bid for mayor of Philadelphia. Prosecutors allege Fattah used federal grants and donations to his educational foundation to pay back part of a campaign supporter’s $1 million loan and helped arrange a $15 million federal grant for a nonexistent nonprofit in lieu of a $130,000 payment to a political consultant after his failed mayoral run.
Texas – Appeals Court Rejects One Count in Perry Indictment
Texas Tribune – Patrick Svitek | Published: 7/24/2015
A state appeals court dropped one of the two felony charges that former Texas Gov. Rick Perry is facing. He was indicted last summer on criminal charges of abuse of power and coercion of a public servant. The case surrounds an episode during which Perry was accused of trying to use his powers as governor to make an elected official step down after being charged with drunken driving. The court dismissed the coercion of a public servant charge against Perry on the grounds that it violates his right to free speech under the First Amendment. He still faces the abuse of official capacity charge, which carries a prison sentence of five to 99 years.
Virginia – Clinton Donors Also Pumped Millions into McAuliffe’s Coffers
Washington Post – Laura Vozzella | Published: 7/29/2015
More than 175 contributors to the Clinton Foundation and to Hillary Clinton’s 2016 presidential campaign have dug deep into their wallets for Virginia Gov. Terry McAuliffe, often giving prolifically despite little or no connection to the state. Of the $60 million that McAuliffe has raised for his two gubernatorial bids, inauguration, PAC, and the Virginia Democratic Party, nearly $18 million has come from contributors to the Clinton Foundation or to Hillary Clinton’s current campaign. The substantial overlap highlights how intimately McAuliffe’s political universe is intertwined with that of Bill and Hillary Clinton, for whom McAuliffe has been a fundraiser and close friend.
Wisconsin – Emails Show Contact between GAB Head and IRS Mostly Personal in Nature
Wisconsin Radio Network – Andrew Beckett | Published: 7/27/2015
An opinion piece in The Wall Street Journal raised the possibility of a coordinated effort by Wisconsin Government Accountability Board Director Kevin Kennedy and former IRS Director of Exempt Organizations Lois Lerner to target conservative political groups for investigation. Wisconsin officials have now released 138 pages of emails between Kennedy and Lerner. Most of the messages discuss dinner and travel plans, or updates about family. A handful of include IRS policy updates or repost articles about campaign finance debates. Lerner also included Kennedy on several lengthy email forwards featuring humorous photo collections about friendship and other jokes.
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.
July 24, 2015 •
News You Can Use Digest – July 24, 2015
Federal: ‘Influencers’ Poll Gives Grades to Lobby Groups The Hill – Megan Wilson | Published: 7/22/2015 The consulting firm APCO Worldwide interviewed 301 people from the public and private sectors, including lobbyists and top aides on Capitol Hill, to find out […]
Federal:
‘Influencers’ Poll Gives Grades to Lobby Groups
The Hill – Megan Wilson | Published: 7/22/2015
The consulting firm APCO Worldwide interviewed 301 people from the public and private sectors, including lobbyists and top aides on Capitol Hill, to find out which trade groups are the most effective at influencing decision-makers. Of the 50 associations evaluated by participants, PhRMA came out on top of seven of the 15 categories – including lobbying, coalition building, social media, having a unified voice, and possessing the ability to work within the legislative, executive, and regulatory arenas. Overall, the financial services industry ranked number one out of the eight sectors listed as part of the survey. “Having a unified voice as an industry and having a positive perception in the media are now considered more important to a trade association’s effectiveness than lobbying or member mobilization,” said Bill Dalbec of APCO.
Rick Perry Finance Chairman Does Super PAC Two-Step
Center for Public Integrity – Carrie Levine | Published: 7/22/2015
Rick Perry’s presidential campaign raised $1.14 million between the former Texas governor’s announcement on June 4 and the end of that month, about one-tenth of what Jeb Bush reported raising in about half that time. But the underwhelming fundraising total is not threatening Kelcy Warren’s job as Perry’s presidential campaign chairperson. Warren is helping the candidate in a major way and is navigating a legal minefield to do it. The billionaire gave $6 million to a coalition of super PACs that are supporting Perry’s bid. Warren’s contribution illustrates how closely some presidential campaigns and advisers are working with the theoretically independent groups that exist to promote their candidate of choice.
Seeing Crowd, G.O.P. Donors Holding Back
New York Times – Nicholas Confessore and Sarah Cohen | Published: 7/18/2015
Only about a fifth of the 1,000 or so fundraisers and their spouses who rallied around Mitt Romney in 2012 have given money to any of the 2016 Republican presidential candidates. Those who remain uncommitted – hundreds of volunteer bundlers who could collect contributions from their friends and business associates – represent a huge pool of untapped campaign cash, potentially hundreds of millions of dollars that could remake the primary campaign. Some of the bundlers and donors said they had held back, in part, because the field was the strongest they had seen in years, with several viable contenders representing the party’s different generational and ideological segments.
Who Advises Candidate Trump? (Hint: His Name Is Donald)
New York Times – Maggie Haberman and Michael Barbaro | Published: 7/20/2015
At a candidate forum in Iowa, Donald Trump said U.S. Sen. John McCain “is not a war hero” because he was captured. It was an improvised fit of pique, denounced by his rivals, which exposed the biggest vulnerability of Trump’s campaign for president: it is built entirely around the instincts and grievances of its unpredictable candidate, and does not rely on a conventional political operation that protects presidential hopefuls from themselves. Even as Trump insisted no one was troubled by his comments, his small group of aides emailed one another about how to respond to the growing criticism. If nothing else, the incident reaffirmed that Trump is running a presidential campaign on his own unique terms.
From the States and Municipalities:
California – Cleaning Up Politics or ‘Vindictive’ Nosy Neighbor? Shirley Grindle Is Making Last Stand as a Watchdog
Orange County Register – Martin Wisckol | Published: 7/19/2015
There are plenty of people who wish 80-year-old Shirley Grindle, Orange County’s best-known government watchdog, would just go away. “The community would be better off if Shirley Grindle focused her attention on 53 cats,” said Susan Kang Schroeder, chief of staff for District Attorney Tony Rackauckas. But Grindle is gearing up for one final battle, a 2016 ballot measure establishing an ethics commission that would keep officials looking over their shoulders long after she is gone.
California – Lobbyist Fee Set to Increase
San Diego Union-Tribune – David Garrick | Published: 7/17/2015
The annual lobbyist registration fee in San Diego would climb from $40 to $150 under a proposal approved by a city council committee. Annual registration fees paid by clients who hire lobbyists would double, from $15 to $30. City Clerk Elizabeth Maland said the increase is warranted based on the time and effort her office spends tracking and analyzing the work of lobbyists, which includes traditional lobbying, campaign activity, and fundraising efforts. The hike, which would take effect in January, still must be approved by the full council, probably in September.
Delaware – Delaware Wins Appeal, Can Enforce Law on Election Ads
Reuters – Jonathan Stempel | Published: 7/16/2015
A Delaware law requiring advocacy groups to disclose the donors behind political advertisements was deemed constitutional by a panel of three judges of the Third U.S. Circuit Court of Appeals. Delaware Strong Families contended that forcing it to comply with the law would improperly damage the organization’s right to free speech. The act requires third-party groups and individuals to disclose their donors if they publish advertisements or other communications that refer to a candidate in an upcoming election. Previously, only groups that directly advocated for or against a candidate were required to disclose their donors.
Illinois – Court Overturns Some Blagojevich Senate-Seat Convictions
ABC News – Michael Tarm (Associated Press) | Published: 7/21/2015
An appeals court overturned four of Rod Blagojevich’s corruption convictions, a ruling that may not result in less prison time for the former Illinois governor. He was convicted in 2011 on 18 counts, including trying to sell the U.S. Senate seat of President Barack Obama, and was sentenced to 14 years in prison. Judges with the Seventh U.S. Circuit Court of Appeals overturned four of those convictions, saying Blagojevich’s attempt to appoint Valerie Jarrett to the Senate seat in exchange for a position on Obama’s cabinet was “a common exercise in logrolling.” The judges said trading one official act for another is unlike trading official acts for a private benefit and cannot be considered bribery or extortion.
Kansas – Brownback Campaign Sought Cash from Westar Official amid Ongoing Rate Case
Topeka Capital-Journal – Jonathan Shorman | Published: 7/20/2015
Documents show a campaign operative for Kansas Gov. Sam Brownback contacted Mark Schreiber, a government affairs vice president at Westar Energy, seeking help retiring debt left over from the governor’s re-election campaign last year. The contact with Schreiber took place amid the company’s request to the Kansas Corporation Commission for hike rates to pay for environmental upgrades, repairs at the company’s nuclear plant, and efforts to reduce storm-related outages.
Missouri – Missouri Capitol Intern Says She Declined Sexual Advances
St. Louis Post-Dispatch – Alex Stuckey | Published: 7/23/2015
A Missouri Senate report details an intern’s claims that state Sen. Paul LeVota harassed her, asked her explicitly for sex, and retaliated when she refused. LeVota denied the account and said he never acted inappropriately with her or other interns. The investigation came after two University of Central Missouri students abruptly left an internship with LeVota partway through the last legislative session, which ended in May. That same day, former House Speaker John Diehl resigned after admitting to exchanging sexually suggestive text messages with a Capitol intern.
New York – Dean Skelos and His Son Face New Bribery Charges
New York Times – Susanne Craig | Published: 7/21/2015
Former New York Senate Majority Leader Dean Skelos and his son, Adam, were arrested in May on charges the Republican lawmaker performed legislative favors for companies with business before the state in an attempt to enrich his son. A superseding indictment adds two new charges of extortion and solicitation of bribes related to Adam Skelos’ employment by a medical malpractice insurance company, allegedly at the request of his father. The new indictment says Adam Skelos allegedly threatened to “smash in” the head of a supervisor who failed to grasp that he was a no-show employee.
New York – New York Ethics Panel Chief Taking State Tax Job
Albany Times Union – Casey Seiler | Published: 7/21/2015
New York Joint Commission on Public Ethics Executive Director Letizia Tagliafierro is resigning to take a new job as deputy commissioner at the state Department of Taxation and Finance, where she will lead the criminal investigations division. The ethics commission, scheduled to meet August 4, are expected to mount a national search for a new executive director. The change comes as the commission prepares to take on expanded duties as a result of the ethics changes included in this spring’s state budget agreement. Under the new rules, groups spending over $5,000 lobbying municipalities with populations of more than 5,000 must register that activity; the cutoff had been populations of 50,000 or more.
New York – Thomas Libous, New York State Senator, Is Convicted of Lying to F.B.I.
New York Times – Thomas Kaplan | Published: 7/22/2015
Thomas Libous, deputy majority leader of the New York Senate, was convicted of lying to federal agents, becoming the latest lawmaker to lose his seat amid a criminal investigation. The conviction triggers his automatic expulsion from the Legislature, where he has served since 1989. He was charged last year with lying to FBI agents who came to his Albany office to ask about his alleged efforts to get his son a job at a politically connected law firm. The trial offered a glimpse of the close dealings between legislators and the lobbyists seeking to influence them.
Vermont – Shumlin Backs Independent Ethics Commission
VTDigger.org – Erin Mansfield | Published: 7/23/2015
Amid conflict-of-interest allegations among Vermont public officials, Gov. Peter Shumlin said he supports the creation of a state ethics commission. Secretary of State Jim Condos is already drafting legislation that would create an independent panel to oversee the executive and legislative branches. “This is not about any individual person; this was always a bigger picture item about how we could improve the trust that Vermonters deserve to have about their government,” said Condos.
Washington – Seattle’s Richest, Whitest Areas Dominate Campaign Giving, Say Reform
Seattle Times – Daniel Beekman | Published: 7/21/2015
The Sightline Institute mapped contributions to candidates for mayor, city council, and city attorney in Seattle for the 2013 election and found a small number of donors from certain neighborhoods dominate the giving. Roughly half the money came from 1,683 donors, or 0.3 percent of the city’s adults. The institute is supporting Honest Elections Seattle, an initiative that that will be on the November ballot. It would lower the contribution limit, ban donations to candidates from entities with city contracts of $250,000 or more and from people spending at least $5,000 to lobby the city. The measure would also establish a public campaign finance system for Seattle.
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.
July 17, 2015 •
News You Can Use Digest – July 17, 2015
Federal: A Year after Rocky Merger, Patton Boggs Aims to Re-Establish K Street Dominance Washington Post – Catherine Ho | Published: 7/13/2015 For decades, the name Patton Boggs was synonymous with K Street lobbying shops. But in 2014, the once dominant […]
Federal:
A Year after Rocky Merger, Patton Boggs Aims to Re-Establish K Street Dominance
Washington Post – Catherine Ho | Published: 7/13/2015
For decades, the name Patton Boggs was synonymous with K Street lobbying shops. But in 2014, the once dominant firm was acquired by Squire Sanders. Now, after a year of challenges – including the death of the firm’s renowned leader, Thomas Boggs, Jr., who helped define the modern-day lobbying industry – Patton Boggs is looking to re-establish itself with new leadership. That rebuilding is being led by Senate veterans Trent Lott and John Breaux.
From the States and Municipalities:
California – Director Concerned over Ethics Pick
San Diego Union-Tribune – Greg Moran | Published: 7/15/2015
Attorney Robert Ottilie was nominated for a seat on the San Diego Ethics Commission. In response, longtime commission Executive Director Stacey Fulhorst said she would resign her post if Ottilie is selected, adding that staff members and possibly other commissioners would also leave. She said Ottilie, who has represented city council members and campaign committees in front of the commission, is a “uniquely disruptive individual” whose presence on the panel would undercut its mission of enforcing campaign finance and ethics rules.
Colorado – Colorado Lobbying Income Likely to Set a Record This Year
Colorado Watchdog – Arthur Kane | Published: 7/15/2015
Lobbyists in Colorado are likely to make as much as $40 million in 2015, which would be a new record. Lobbyists have gone from making about $5.5 million in 1995 to nearly eight times as much with some years showing double-digit increases over the previous year, show disclosure filings. Colorado State University political science professor John Straayer said the state used to have individual lobbyists, but recently they have formed into organized corporations that provide lobbying, political fundraising, public relations, and other services. “They’re full-service operations,” said Straayer.
Colorado – The Colorado Soap Opera That Could Be a Major 2016 Headache for the GOP
Washington Post – Ben Terris | Published: 7/15/2015
In Colorado, allegations of an extramarital affair involving state Republican Party Chairperson Steve House have elevated a seemingly mundane political power struggle into a statewide soap opera that has left the GOP in disarray, a situation that could have national implications as one of the most unpredictable swing states prepares for the 2016 presidential race. If House, who denied the affair allegations, has been bruised, so too has state Attorney General Julie Coffman. The wife of U.S. Rep. Mike Coffman (R-Colo.), she had been widely viewed as a likely contender for governor in 2018. Now commentators across Colorado are wondering aloud if the attorney general committed blackmail.
Georgia – Gift Rules for State Employees Mostly Ignored, Observers Say
Savannah Morning News – Walter Jones (Morris News Service) | Published: 7/11/2015
Georgia Gov. Nathan Deal issued an executive order the day he was sworn into office prohibiting state employees or their families from accepting anything of value worth more than $25 from lobbyists or vendors. Existing state law requires anyone doing business with city, county, or state government that spends more than $250 in a year on gifts to file an annual report. Of the thousands of companies providing services to government agencies, only about two-dozen filed a gift report for 2014 activity. Some say the information reported by the few companies that do file raises questions about the exploitation of the law.
Louisiana – Ethics Report on New Orleans: Lots of progress since Katrina, but long way to go
New Orleans Times-Picayune – Richard Rainey | Published: 7/9/2015
Recovery from Hurricane spurred New Orleans to establish the Office of Inspector General, the Office of the Independent Police Monitor, and the Ethics Review Board, each watchdogs focused on rooting out corruption, wasteful spending, and generally bad behavior among the city’s elected officials and public employees. New Orleans voters approved their creation in 1995, but it took disaster in 2005 to spark some follow-through. But for one longtime ethics reform champion, that spark has not ignited enough improvement. David Marcello, executive director of the Public Law Center at Tulane University, praised the work of the inspector general and the police monitor, but came down hard on the ethics board in a new report.
New York – Bipartisan Group Sues to Close New York’s Corporate Donation Loophole
New York Times – Jesse McKinley | Published: 7/14/2015
A coalition of good-government advocates and state lawmakers has filed a lawsuit challenging New York’s so-called LLC loophole, which allows political donors to flout contribution limits by opening multiple limited liability companies. The lawsuit challenges the state Board of Elections deadlock in April when it was petitioned to reconsider how LLCs are viewed by the board, which counts each LLC as an individual. That allows each LLC to give up to $60,800 to a statewide candidate per election cycle. Critics contend the loophole allows donors, like real estate developers, to use multiple LLCs to make huge contributions to candidates.
North Carolina – Elections Board Finds No Violations in Sweepstakes Campaign Donations
Raleigh News & Observer – Craig Jarvis | Published: 7/15/2015
An investigation into more than $270,000 in questionable donations to the campaigns of top North Carolina officials from Chase Burns, an Internet sweepstakes magnate, has found no violations of state campaign finance law. Burns and his wife were among the top donors to North Carolina candidates in 2012, as the industry was lobbying lawmakers to overturn the state’s ban on the games. A watchdog group filed a complaint alleging Burns violated state laws against using corporate money for donations. Members of the elections board expressed frustration with ambiguities in North Carolina’s campaign finance laws.
North Carolina – NC Election Board Member’s Firm Worked for Target of Probe
WRAL – Michael Biesecker and Mitch Weiss (Associated Press) | Published: 7/10/2015
Paul Foley, a member of the North Carolina Board of Elections, demanded regular updates about an investigation into donations to the campaigns of Gov. Pat McCrory and dozens of other elected officials. Foley failed to disclose that his law firm had represented the target of the investigation, sweepstakes executive Chase Burns. Despite a law that demands officials remove themselves from proceedings if they have a financial relationship with a participant, Foley did not step aside for nearly a year-and-a-half, until State Elections Director Kim Strach learned of nearly $1.3 million in prior payments from Burns’ company to Foley’s law firm.
Oklahoma – Oklahoma Lobbying Disclosures Lag Behind Other States
Oklahoma Watchdog – Arthur Kane | Published: 7/9/2015
Important information about lobbying activity is not required in Oklahoma when most other states have adopted rules or laws mandating the disclosures. Unlike most states, Oklahoma does not require lobbyists to disclose what legislation they are supporting or opposing. The rules also do not require lobbyists to report how much they received from the organizations and businesses that hired them, a practice required by at least 14 other states.
Pennsylvania – Ex-Mayor of Pennsylvania’s Capital Charged with Corruption
Albany Times Union – Marc Levy and Mark Scolforo (Associated Press) | Published: 7/15/2015
Former Harrisburg Mayor Stephen Reed, who ended his 28-year tenure in 2010 with the city near financial ruin, was arrested and faces 499 criminal counts for theft, bribery, evidence tampering, and other charges. Reed and unnamed associates issued municipal bonds for legitimate purposes but allegedly used some of the proceeds to buy a bizarre list of artifacts for what Reed claimed was a plan to open a museum. The purchases included a life-size sarcophagus, a suit of armor, a “vampire hunter’s set,” and a $14,900 playbill from Ford’s Theatre on the night of the Lincoln assassination. Pennsylvania Attorney General Kathleen Kane said investigators are looking into allegations of misconduct by others, and she expects more charges to be filed.
Virginia – Plastic Tumblers, a Night at Dad’s House Top Gifts in Post-McDonnell Richmond
Washington Post – Laura Vozzella | Published: 7/13/2015
After Virginia Gov. Robert McDonnell was convicted on corruption charges, political gift-giving in the state has become such a modest and open affair that Matthew Ogburn would not spend the night in his boyhood bedroom without erring on the side of caution by making a public disclosure. Ogburn is a legislative assistant to a state senator and the son of David Ogburn, Jr., a Verizon lobbyist who lives in the Richmond suburbs. Lobbyists do not have to disclose gifts they make to their dependent children, but since Matthew Ogburn is 24 and living on his own, his father reports every time he comes for a visit.
Washington – Taxpayer Financed Campaign Proposal, with ‘Democracy Vouchers,’ Wins a Place Seattle’s Fall Ballot
Seattle Post-Intelligencer – Joel Connelly | Published: 7/13/2015
An initiative that qualified for the ballot would impose a property tax levy that would pay for publicly financed elections in Seattle. Initiative 122 would ban contributions from corporations with medium-sized and large city contracts, as well as corporations that spend money lobbying the city. It would also lower the donation limit for city races, and boost fines and penalties for election law violations.
Wisconsin – Vos: Time to ‘double down’ on GAB reform in wake of reported IRS links
Wisconsin Watchdog – M.D. Kittle | Published: 7/10/2015
Key legislative Republicans renewed their call to reform the Wisconsin Government Accountability Board (GAB) after The Wall Street Journal reported the agency and the IRS may have shared information about the state’s so-called John Doe investigation, the secret probe that targeted dozens of conservative groups and the campaign of Gov. Scott Walker. The newspaper ran an editorial noting GAB Director Kevin Kennedy has had a professional relationship for 20 years with Lois Lerner, the former IRS official who was involved in reviewing the tax exempt status of conservative political organizations. Kennedy knows Lerner from their involvement over the years with the Council on Governmental Ethics Laws.
Wisconsin – Wisconsin Supreme Court Ends John Doe Probe into Scott Walker’s Campaign
Milwaukee Journal Sentinel – Patrick Marley | Published: 7/16/2015
The Wisconsin Supreme Court ruled that a criminal investigation into coordination between conservative groups and Gov. Scott Walker’s 2012 campaign cannot continue. The decision ends the specter of an inquiry as Walker pursues the Republican nomination for president. The investigation began after the governor survived a recall election brought by voters who opposed limits he made to collective bargaining rights and union power. The probe looked at whether Walker’s advisers directed interactions with at least a dozen outside conservative groups, and whether that violated disclosure rules and donation limits.
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.
July 10, 2015 •
News You Can Use Digest – July 10, 2015
National: Is This Cold, Rural State Home to the Nation’s Healthiest Democracy? Washington Post – Niraj Chokshi | Published: 7/7/2015 After taking 22 factors into account – including broad access to voting, equal representation in state government, and a limited concentration […]
National:
Is This Cold, Rural State Home to the Nation’s Healthiest Democracy?
Washington Post – Niraj Chokshi | Published: 7/7/2015
After taking 22 factors into account – including broad access to voting, equal representation in state government, and a limited concentration of influence over the political system – Maine’s democracy ranks healthiest in the nation, according to the Center for American Progress Action Fund. Alabama’s was weakest, though all states are far from perfect. “One of the messages throughout this report is that every state has room to improve,” said Lauren Harmon, the report’s author. The study noted that restricting influence over the political system is a particularly weak area. A dozen states have no limits on campaign contributions. Just 15 states offer public campaign financing, while 37 require some waiting period between leaving office and taking a lobbying job.
The Most Liberal and Conservative CEOs
Yahoo Finance – Rick Newman | Published: 7/8/2015
Many chief executive officers of major corporations donate money across the political spectrum for pragmatic business reasons rather than personal ideological ones. Crowdpac analyzed campaign contributions from CEOs of the 100 largest public U.S. companies to find out just how liberal or conservative these executives really are.
Washington Gridlock Drives Lobby Shops to Focus on State Policy Battles
Washington Post – Catherine Ho | Published: 7/7/2015
As getting anything done in Washington, D.C. has become increasingly difficult, K Street-based lobbying firms are trying their luck representing clients seeking changes on a state rather than federal level. The idea of pivoting to capture state-level work is not new. But some lobbyists say it is taking on increased importance now that policy fights over some of the biggest issues are moving more quickly at the local level.
Federal:
Court Upholds Ban on Contractor Political Contributions
New York Times; Associated Press – | Published: 7/7/2015
A federal court upheld a longstanding prohibition on contractors making political contributions, handing a rare win to proponents of stronger campaign finance restrictions. The ban applies to individuals, corporations, and firms that are negotiating or working under federal contracts. While doing do, they cannot give money to federal candidates, parties, or committees. Chief Judge Merrick Garland of the U.S. Court of Appeals for the District of Columbia Circuit said recent corruption scandals involving members of Congress point to the continuing danger of “quid pro quo” corruption. He agreed with the FEC that the law protects the integrity of merit-based government contracting.
GOP Leaders Fear Damage to Party’s Image as Donald Trump Doubles Down
Washington Post – Karen Tumulty, Philip Rucker, and Robert Costa | Published: 7/8/2015
Republican National Committee Chairperson Reince Priebus, faced with growing pressure from inside the party to quiet Donald Trump, called the provocative presidential candidate recently and asked him to speak in more measured tones. Days of round-the-clock cable news coverage of Trump’s incendiary claims about criminals coming across the border from Mexico forced Priebus to show alarmed Republicans that he was taking action. But the call also highlighted the limits of what could be done to rein in Trump.
Here Are the Secret Ways Super PACs and Campaigns Can Work Together
Washington Post – Matea Gold | Published: 7/6/2015
For the first time, nearly every top presidential hopeful has a personalized super PAC that can raise unlimited sums and is run by close associates or former aides. The widespread cooperation, which many campaign finance experts say stretches the legal boundaries, indicates that candidates and their advisers have little fear they will face serious scrutiny from law enforcement, despite the Justice Department’s successful prosecution this year of a campaign operative for illegal coordination. One main reason is that under FEC rules, there is no wall dividing candidates and independent groups. In practice, it is more like a one-way mirror, with a telephone on each side for occasional calls.
I.R.S. Expected to Stand Aside as Nonprofits Increase Role in 2016 Race
New York Times – Eric Lichtblau | Published: 7/5/2015
Regulators at the IRS appear certain to delay trying to curb campaign finance abuses at nonprofits until after the 2016 election. Agency officials concede the rules for nonprofit groups are vague and difficult to enforce. Audits for excessive campaign work are extremely rare, even for groups spending huge chunks of their budgets to support candidates. The IRS remains wounded by the scandal that began two years ago over its scrutiny of nonprofits tied to the tea party and other political causes, both conservative and liberal. “It’s anything goes for the next couple of years …,” said Paul Streckfus, a former nonprofit specialist at the IRS.
From the States and Municipalities:
California – Aide to California Senate Leader Accepted Pot Gifts from Marijuana Lobbyist
BuzzFeed News – Amanda Lewis | Published: 7/8/2015
Ethics experts said a California Democratic Party staffer did not violate disclosure laws by accepting edible marijuana and an e-cigarette filled with hash oil from a lobbyist for the marijuana industry. The aide, Josh Drayton, works for the party’s Senate Democrats on political campaigns. BuzzFeed News reported that after accepting the gifts, Drayton said Senate President Pro Tem Kevin de Leon needed to learn more about marijuana. Lawmakers and employees of the Senate are subject to gift reporting and limits. Drayton, however, is exempt because he is not employed by the Senate but by the party, said Gary Winuk, a former enforcement chief at the Fair Political Practices Commission.
Hawaii – How Hawaii Lawmakers Spend Up to $13,000 a Year – Each
Honolulu Civil Beat – Nathan Eagle | Published: 7/8/2015
Many Hawaii lawmakers have been less than thrilled with state Ethics Commission Executive Director Les Kondo’s strict opinions on what gifts they are allowed to accept from lobbyists, or what events they can attend with complimentary tickets. Legislative allowances have been another sore point. But a review of nearly $4 million in state lawmakers’ expenses over the past four years shows they are changing their habits based on the commission’s advice even if they do not like it, including not billing taxpayers for their dry cleaning or charitable donations.
Missouri – More Questions than Answers in Intern Investigation at Mo. Capitol
St. Louis Post-Dispatch – Alex Stuckey | Published: 7/6/2015
In March, two interns abruptly left Missouri Sen. Paul LeVota’s office. But since then, the University of Central Missouri launched a Title IX investigation and the Senate began its own investigation and hired an attorney to assist with a “workplace harassment complaint.” Meanwhile, it appears unlikely the university, or even the Senate, could inflict punishment if wrongdoing has taken place. History has shown that harassment in the Capitol is rarely reported and difficult to prove.
New Hampshire – New Hampshire Voters Bemoan Size of G.O.P. Field
New York Times – Patrick Healy and Maggie Haberman | Published: 7/4/2015
The likely field of 16 Republican candidates is stirring frustration in New Hampshire, particularly among voters who say they feel more overwhelmed, even ambivalent, than ever before about their long-cherished responsibilities in holding the nation’s first primary. Some voters said they were already dreading the weeks of political fliers stuffed in their mailboxes, of campaign volunteers at their doors during the day, and of television ads and automated phone calls all through the night. Others said they already had candidate fatigue.
Oklahoma – Ethics Commission to Crack Down on Late Campaign Filers
Tulsa World – Curtis Killman | Published: 7/3/2015
The Oklahoma Ethics Commission approved a series of new and increased fees designed to help the agency go after late filers. The new fees, coupled with a boost in state funding, should provide enough revenue to permit the agency to hire two new staff members dedicated to compliance, said commission Executive Director Lee Slater. The new staff will assist with the collection of late filing fees assessed to candidate committees, PACs, and other entities charged with disclosing campaign finance activities.
Oklahoma – House Freshmen, Senate Leadership Accept Thousands in Lobbyist Meals, Gifts
Oklahoma Watchdogs – Arthur Kane | Published: 7/8/2015
Lobbyists in Oklahoma lobbyists spent more than $300,000 this year on meals, gifts, and receptions for state lawmakers. Lobbyists spent the most on mass events for large groups of legislators. Those parties and caucus meals cost nearly $170,000. Rep. Casey Murdock received nearly $2,900 in meals and gifts, the most of any member of the Legislature. Murdock said being courted by lobbyists is not as glamorous as some may assume. “I’m looking forward to next year when I won’t be a freshman and won’t have to go to many dinners,” Murdock said. “It gets old. Often you’re not the least bit interested in what they’re selling and you’re going through the motions.”
South Carolina – South Carolina House Votes to Remove Confederate Flag from Statehouse Grounds
Washington Post – Elahe Izade and Abby Phillip | Published: 7/9/2015
The Confederate battle flag that has flown at the South Carolina Statehouse for more than 50 years will soon be gone after lawmakers capped a tension-filled session and voted to remove it from the Capitol grounds. The final vote in the House of Representatives was well above the two-thirds majority that was required to move the bill toward the desk of Gov. Nikki Haley, who called for the flag to come down after the massacre at the Emanuel African Methodist Episcopal Church in Charleston. Photographs emerged of the now-indicted shooter, an avowed white supremacist, posing with the emblem. Advocates for the flag’s removal say it represents a racist legacy and a dark chapter in the nation’s history, while defenders insist it symbolizes Southern heritage and honors fallen soldiers.
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.
July 3, 2015 •
News You Can Use Digest – July 3, 2015
Federal: As Donald Trump Surges in Polls, Democrats Cheer Washington Post – Philip Rucker | Published: 7/1/2015 With the Republican Party on a mission to woo Latino voters, one of its presidential candidates has been enmeshed for two weeks in a […]
Federal:
As Donald Trump Surges in Polls, Democrats Cheer
Washington Post – Philip Rucker | Published: 7/1/2015
With the Republican Party on a mission to woo Latino voters, one of its presidential candidates has been enmeshed for two weeks in a feud over his inflammatory comments about Mexican immigrants. “They’re bringing drugs, they’re bringing crime, they’re rapists,” Donald Trump said in his campaign announcement speech. The comments, and many more since, have prompted an uproar among Latino groups and a series of nasty break-ups between Trump and various corporate partners. His outlandish rhetoric and skill at occupying the national spotlight is also proving to be dangerously toxic for the GOP brand, which remains in the rehabilitation stage after losing the 2012 presidential race.
Bernie Sanders Doesn’t Follow the Money
Politico – Tarini Parti and Jonathan Topaz | Published: 6/28/2015
Working almost exclusively from his website, U.S. Sen. Bernie Sanders has raised about $8 million so far for his presidential campaign with an average donation of around $40. But Sanders, who has been rising fast in recent early-state polls, is missing an opportunity to capitalize on his momentum with a progressive base that has been without a standard-bearer since U.S. Sen. Elizabeth Warren declined to run. “I frankly don’t get the restraint ….,” said Harvard University professor Lawrence Lessig, adding that some think Sanders is ruining his presidential chances by not having a super PAC. Sanders faces the daunting task of finding a way to stay competitive in the Democratic primaries against one of the most potent pair of fundraisers in party history, Bill and Hillary Clinton, who are expected to count their receipts on Hillary’s behalf in the billions of dollars.
From the States and Municipalities:
Arizona – Justices Rule 5-4 That Independent Panels Can Draw Election District Lines
Washington Post – Robert Barnes | Published: 6/29/2015
The U.S. Supreme Court upheld Arizona’s congressional map, declaring the use of an independent redistricting commission that drew House district lines in the 2012 cycle did not violate the Constitution. About a dozen states have experimented with redistricting commissions that have varying degrees of independence from the state Legislatures, which ordinarily draw election maps. Justice Ruth Bader Ginsburg rejected the Arizona Legislature’s contention that it alone has power over redistricting. She said the decision by voters to turn reapportionment over to an independent commission “was in full harmony with the Constitution’s conception of the people as the font of governmental power.”
California – Ex-State Sen. Leland Yee Pleads Guilty to Racketeering in Corruption Case
Los Angeles Times – Lee Romney | Published: 7/1/2015
Former California Sen. Leland Yee pleaded guilty to a racketeering charge in an organized crime and public corruption case. He could face a maximum of 20 years in prison when he is sentenced in October. The FBI arrested Yee and 19 others in 2014 during a series of raids targeting a Bay Area organized crime ring. Yee was accused of soliciting and accepting bribes in exchange for providing help from Sacramento. The FBI also alleged that Yee, who was running for secretary of state at the time, conspired to connect an undercover agent with an international arms dealer in exchange for campaign contributions.
Florida – How Marco Rubio Turned Political Star Power into a Soaring Personal Income
Washington Post – Tom Hamburger and Sean Sullivan | Published: 6/29/2015
During his nine years in Tallahassee, as U.S. Sen. Marco Rubio rose in prominence and ascended to the state House speakership, he became increasingly well-compensated as he walked a narrow line between his work as a lawmaker and an employee of outside firms with interests before the state government. An analysis shows about 80 percent of his total income during his House tenure came from Florida law firms that lobby state and local governments. Rubio’s annual income grew from about $72,000 when he was elected to the state House in 2000 to $414,000 in 2008, when his two-year speakership ended.
Maine – Combative Maine Governor Becomes a Party of One
New York Times – Katherine Seelye | Published: 6/28/2015
In the last few weeks, Maine Gov. Paul LePage’s belligerence has surprised even his critics, and prompted some to raise the specter of impeachment. In a standoff that began with differences over tax policy, LePage has alienated just about the entire Legislature, including his fellow Republicans and onetime allies.
New York – Ex-N.Y. State Senator Gets Seven Years in Prison for Bribery
Albany Times Union – Tom Hays (Associated Press) | Published: 7/1/2015
Former New York Sen. Malcolm Smith will spend seven years in prison for a scheme to bribe his way onto the ballot for the 2013 New York City mayoral election. Smith wanted to be mayor but sought to avoid a Democratic primary. He instead decided to obtain the backing of GOP leaders in three boroughs so he could run as a Republican. Prosecutors said he authorized bribes totaling about $200,000. The five other politicians who were arrested with Smith were convicted or pleaded guilty.
New York – IG: State vendor lavished OMIG director with gifts, booze
Albany Times Union – Brendan Lyons | Published: 6/25/2015
A new report accused Joseph Flora, the former director of the New York Office of Medical Inspector General (OMIG), of improperly accepting gifts – including meals, alcohol, and a $130,000-a-year job offer – from a company that has a multimillion-dollar contract with the state. Health Management Systems (HMS) has had multiple contracts with OMIG since 2006. Flora was forced to retire from his state job in 2014 after a probe of his ties to the company. Separately, as a client of a registered lobbyist throughout the entire time period, HMS was subject to certain prohibitions on giving gifts to public officials. The Joint Commission on Public Ethics announced it had reached a settlement under which HMS would pay a $75,000 penalty.
Ohio – Lobbyist a Constant in Columbus’ Politics
Columbus Dispatch – Mark Ferenchik and Lucas Sullivan | Published: 6/28/2015
Lobbyist John Raphael has been a presence in Columbus, Ohio for almost 40 years. He has been an aide to a state senator and a member of the Columbus City Council, helped run a restaurant that was frequented by politicians, and currently represents eight clients at City Hall. And now he is at the center of a political and legal firestorm. In a plea agreement, former Redflex Chief Executive Officer Karen Finley said she passed money through Raphael and the Ohio Democratic Party to elected officials in Columbus to obtain contracts for red-light cameras. Council President Andrew Ginther, running this year to succeed Mayor Michael Coleman, has been subpoenaed in the matter, as has Coleman.
Oregon – How Much Pot Can Lawmakers Receive as a Gift? Oregon Democrat Has Some Advice
Portland Oregonian – Denis Theriault | Published: 6/30/2015
The Oregon Government Ethics Commission’s handbook for elected officials spells out a lot of rules in its section on gifts, especially when the people giving the gift have a financial interest in that official’s work. But none of those rules cover marijuana, which is legal in Oregon but not nationally. Rep. Ann Liniger offered some advice in an email to colleagues, recommending they know the value of the quantity of marijuana they are offered so as not to violate the $50 limit on gifts. But Lininger also sought to clarify her advice when asked about it by reporters. “My recommendation is that elected officials not accept gifts of cannabis,” said Linder.
Oregon – Kate Brown Signs Final Ethics Reforms, Mentions ‘Chaos and Confusion’ of Kitzhaber’s Last Days
Portland Oregonian – Denis Theriault | Published: 7/1/2015
Oregon Gov. Kate Brown signed the last of three ethics-related bills she requested after Gov. John Kitzhaber resigned amid an influence-peddling scandal. House Bill 2019 expands the Oregon Government Ethics Commission from seven members to nine, while speeding up its timelines for investigating complaints and giving legislative leaders a larger role in appointing its members. House Bill 2020 clarifies that the governor’s partner is a public officials who must join file conflict-of-interest forms. It also raises bans the governor and first partner, and all other statewide elected officials, from accepting speaking fees.
Pennsylvania – Lack of Funding for State Ethics Commission Invites Corruption, Experts Worry
Pittsburgh Tribune-Review – Kari Andren | Published: 6/27/2015
The number of staff members at the Pennsylvania Ethics Commission now stands at 17, down 30 percent from the 24 who once worked there. The commission’s funding topped 2009 levels for the first time this year at just more than $2 million. But this year’s $222,000 increase went to the bare essentials: upgrading outdated computers and software and hiring one investigator, the first hire in six years. Executive Director Rob Caruso said with its funding and staffing levels, the commission cannot fully investigate all of the 400 to 500 sworn complaints filed each year. One expert said Pennsylvania’s lack of funding for its watchdog office invites corruption.
Texas – John Wiley Price Associates Enter Guilty Pleas, Agree to Testify
Dallas Morning News – Kevin Krause and Ed Timms | Published: 6/30/2015
Two people have pleaded guilty in a federal corruption probe of Dallas County Commissioner John Wiley Price, who is accused of accepting nearly $1 million in bribes. Christian Lloyd Campbell was a consultant for Price. Campbell pleaded guilty to conspiracy to commit bribery. Price, who awaits trial on conspiracy and fraud-related counts, allegedly accepted bribes to leak confidential information to help Campbell’s clients win contracts. Gallery owner Karen Manning pleaded guilty to subscribing to a fraudulent income tax return. Prosecutors say Manning sold African art for Price in a scheme to hide his illicit profits.
Virginia – With McAuliffe in Office, Old Friends Find New Opportunities
Lexington Herald-Leader – Alan Suderman (Associated Press) | Published: 6/26/2015
After Gov. Terry McAuliffe took office in early 2014, some of his friends – who had never lobbied in Virginia before – started registering as lobbyists with several companies interested in contracting with the state. Among the companies are technology and health care businesses, including some Medicaid-related firms. McAuliffe has made expanding Medicaid a top priority for his administration. He has so far been blocked by the Republican-controlled General Assembly.
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.
June 26, 2015 •
News You Can Use Digest – June 26, 2015
National: Calls to Drop Confederate Emblems Spread Nationwide New York Times – Campbell Robertson, Monica Davey, and Julie Bosman | Published: 6/23/2015 After decades of bitter debate over whether the Confederate battle flag is a proud symbol of regional heritage or […]
National:
Calls to Drop Confederate Emblems Spread Nationwide
New York Times – Campbell Robertson, Monica Davey, and Julie Bosman | Published: 6/23/2015
After decades of bitter debate over whether the Confederate battle flag is a proud symbol of regional heritage or a shameful emblem of the nation’s most grievous sins, the argument may finally be moving toward an end. South Carolina is leading the way for other states as it considers removing the flag from its Capitol grounds after nine parishioners were shot to death in a black church in Charleston. Photographs that have since surfaced of the accused killer, Dylann Roof, show him posing with the Confederate flag. The banner was long considered politically sacrosanct in the South, at least among conservative whites. It now appears that a rush is on to banish it, along with other images that evoke the Confederacy and sow racial divisiveness.
Can Unlimited Contributions to Political Parties Really Reduce Polarization?
Washington Post – Lee Drutman | Published: 6/23/2015
Ideological polarization has many causes, most of which cannot be altered. But over the past few years, a growing crowd of scholars has explored the possibility that stronger parties could reduce the division. Because different states have different rules on how much money parties can raise, the proposition that making it easier for parties to raise more money reduces polarization can be empirically tested.
Federal:
Lobbyists: Easy target, easy touch
Politico – Tarini Parti | Published: 6/21/2015
In his speech announcing his intention to run for president, Jeb Bush singled out the lobbying industry for criticism, saying, “We will also challenge the culture that has made lobbying the premier growth industry in the nation’s capital – the rest of the country struggles under big government, while comfortable, complacent interest groups in Washington have been thriving on it.” Bush is not alone in calling out the industry. As presidential candidates look to portray themselves as Washington outsiders, lobbyists have emerged as a common, easy target. But lobbying firms still rank high on the list of fundraising stops for presidential hopefuls.
From the States and Municipalities:
Arkansas – Ethics Panel Issues Opinion on Lobbyist Gifts
Arkansas News – John Lyon | Published: 6/19/2015
The Arkansas Ethics Commission issued an advisory opinion stating that state agency directors, agency deputy directors, agency employees, and most local elected officials and their staffs and the staff members of constitutional officers are not barred from accepting gifts from lobbyists under Amendment 94. Gifts that fall outside of the scope of the amendment would still be subject to analysis, the commission said in the opinion, noting the law excludes gifts with a value of $100 or less.
California – Lawmakers’ Calendars List Meetings with Undercover Agents
San Diego Union Tribune – Judy Lin (Associated Press) | Published: 6/23/2015
Providing a rare glimpse at politicians’ lives outside the Capitol, the California Senate released about 300 pages from the calendars of former Sens. Ron Calderon and Leland Yee, who have been indicted on separate corruption charges. The appointment books appear to corroborate allegations that they met with undercover FBI agents at steakhouses and a lobbyist’s office. A judge found in the first ruling of its kind in California that the public’s interest outweighed the Senate’s interest in keeping the records private after news organizations sued to get the lawmakers’ records.
Florida – How Some of Florida’s Top Lobbyists Produce Blockbuster Budget Results
SaintPetersBlog – Peter Schorsch | Published: 6/16/2015
Speculation is part of the budget-making process in Florida as lobbyists and advocates seek funding for projects and programs. Then desperation hangs in the air during the final week of a 60-day session while they wait to see whether a year’s worth of work will result in a line item in the $77 billion state budget. “It’s a different type of animal than any other part of the legislative session, for sure,” said lobbyist Travis Blanton. “You can’t ever relax or take time off with the budget. You’ve got to play through the whole process [because] you don’t know until the moment when they hit the print button that you are in the budget or not.”
Idaho – Lobbying at the Capitol: Should Idaho state employees have to register under the law?
Idaho Statesman – Bill Dentzer | Published: 6/19/2015
State employees who lobby the Idaho Legislature or government officials as part of their jobs – for example, the lobbyists for the state’s universities – always used to register and disclose their spending. But after an attorney general’s opinion found they did not need to, the university lobbyists and other state workers whose jobs entail lobbying stopped filing. Now, Idaho Secretary of State Lawerence Denney wants to propose legislation to make them register and disclose again. He also obtained a new opinion stating that gifts to lawmakers or executive branch officials must be disclosed, even if they come from state employees in the course of doing their jobs.
Kentucky – Florida Group Challenges Kentucky Law That Bans Corporations from Making Political Contributions
Lexington Herald-Leader – Jack Brammer | Published: 6/18/2015
Kentucky’s ban on corporate contributions to political parties and state and local candidates was challenged in a federal lawsuit filed by a group promoting a right-to-work agenda opposed by organized labor. The Florida-based group, Protect My Check Inc., claims the prohibition violates equal protection and free-speech rights. It said the ban is discriminatory because unions and limited liability companies are allowed to donate to candidates and political parties in Kentucky.
Missouri – Police Report Reveals Past Diehl Affair with Nixon Staffer
St. Louis Post-Dispatch – Virginia Young | Published: 6/19/2015
Former Missouri House Speaker John Diehl, who resigned after exchanging sexually suggestive text messages with a Capitol intern, also had affair with a former aide to Gov. Jay Nixon. While announcing his resignation, Diehl said he had not had any other inappropriate relationships with other women. But a Jefferson City police report notes Diehl and former Nixon aide Brittany Burke acknowledged to police they had an affair last year. At the time, Burke was lobbying the Legislature for the administration.
New Mexico – Transparency-Pushing Nonprofit Discloses Donors
NMPolitics – Heath Haussamen | Published: 6/19/2015
The IRS does not require most nonprofits to disclose their donors publicly even if they engage in lobbying or issue advocacy. But Common Cause’s national policy requires that it release information about donors of $250 or more when requested, which is how NMPolitics.net obtained the list of New Mexico donors. Common Cause New Mexico Executive Director Viki Harrison said her organization believes “it is very important to have full transparency in any efforts to influence policy.” She said she hopes additional nonprofit groups will voluntarily disclose their funding, “just like we hope elected officials, parties, lobbyists, and PACs go above and beyond what is simply the law when they disclose information.”
Ohio – Former Traffic Camera Exec Admits to Bribing Officials in Columbus, Cincinnati
Cleveland Plain Dealer – Jeremy Pelzer (Northeast Ohio Media Group) | Published: 6/19/2015
Karen Finley, a former chief executive officer of Redflex Traffic Systems, pleaded guilty to bribery in an eight-year scheme involving elected city officials from both Cincinnati and Columbus to win or keep traffic-camera contracts. Court records show campaign contributions were funneled to the officials through a political consultant, and the money intended for Columbus officials was given to the Franklin County Democratic Party and Ohio Democratic Party, according to the plea agreement. Finley left the company in 2013 following a similar scandal in Chicago.
Oregon – Cannabis Industry Flexes Its New Political Muscle
Oregon Public Broadcasting – Conrad Wilson | Published: 6/21/2015
The 300 attendees at a recent fundraiser in Portland for U.S. Rep. Earl Blumenauer represented a newly energized group – members of the cannabis industry, now in an era where their product is legal for recreational use in Oregon. The Oregon Cannabis PAC hosted the event, which raised $100,000. Its leaders say that is the largest sum ever contributed by the industry to a politician during a single event. As the marijuana industry grows around the county, its political clout is growing, too. For members of Congress who are constantly fundraising, the industry offers new, high-yield donors. But it also raises questions about where the money came from and what those donors expect in return.
Oregon – Kate Brown Gets Her Wish: Last of her ethics reforms win approval
Portland Oregonian – Denis Theriault | Published: 6/18/2015
Oregon lawmakers approved the last of Gov. Kate Brown’s ethics reform bills. House Bill 2019 speeds up investigations by the state Government Ethics Commission and sharply limits the governor’s role in appointing its members. House Bill 2020 affirms that the governor’s partner is subject to state ethics rules and bans statewide officers from accepting speaking fees. Both join Senate Bill 9, which Brown has signed. It orders an audit of state agencies’ handling of public records, with its findings expected to serve as the basis of reforms as soon as next year.
Texas – Abbott Vetoes Spousal Loophole
Texas Tribune – Jay Root | Published: 6/20/2015
Texas Gov. Greg Abbott vetoed two ethics reform bills that would have given lawmakers cover to hide their spouses’ financial dealings. The vetoes capped Abbott’s inability in his first year to strengthen ethics laws as promised. He even named it one of five legislative priorities. Lawmakers fought for months over allowing more transparency about their personal wealth and curbing conflicts-of-interest. Although the vetoed bills would have tightened some disclosure rules, even ethics watchdogs considered what became known as the “spousal loophole” amendment far too toxic.
Washington – Vaping Giveaways Raise Eyebrows at State Capitol
The Olympian – Melissa Santos (Tacoma News Tribune) | Published: 6/24/2015
In a contest promoted by a group that supports stores that sell electronic cigarettes, customers who emailed Washington legislators to oppose new taxes on vapor products were entered into a drawing for prizes. Other shops told customers that if they emailed or called their lawmakers from inside a participating store, they would get a discount on their purchases. It is an unusual type of lobbying that has frustrated some state lawmakers who are looking to regulate the vaping industry. A spokesperson for state Public Disclosure Commission said providing discounts or giveaways in exchange for people contacting their lawmakers is not against the law, it is just something the agency has not seen before.
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.
June 19, 2015 •
News You Can Use Digest – June 19, 2015
Federal: Jeb Bush Announces Presidential Bid: ‘We will take command of our future once again’ Washington Post – Ed O’Keefe | Published: 6/15/2015 Jeb Bush announced he is running for president, promising to remove Washington as an obstacle to effective government […]
Federal:
Jeb Bush Announces Presidential Bid: ‘We will take command of our future once again’
Washington Post – Ed O’Keefe | Published: 6/15/2015
Jeb Bush announced he is running for president, promising to remove Washington as an obstacle to effective government and economic prosperity. Bush is declaring his White House ambitions nearly 27 years after his father was elected president, molding a political dynasty that would propel one son into a governor’s office and another into the White House. But Bush will enter a presidential contest that is unlike any faced by his father, who won the office in 1988, or his brother, who claimed it in 2000.
Neil Young Message to Donald Trump: Stop rockin’
Christian Science Monitor – Jessica Mendoza | Published: 6/17/2015
Donald Trump announced his presidential candidacy to the sound of Neil Young’s “Rockin’ in the Free World,” but Trump did not have permission to use the song, said Elliot Roberts, Young’s manager. The incident makes the real estate developer the latest candidate to butt heads with a musician about song copyright in a campaign. A spokesperson said Trump, a fan of Young’s music despite their differing views, used the song legally through a licensing deal with the American Society of Composers, Authors, and Publishers. But even when a campaign does get copyright permission, artists can still object to the use of their music under other laws that protect their brand or image, or ban implications of endorsement.
Republican Operative Sentenced to 2 Years in Landmark Election Case
Washington Post – Matt Zapotosky and Matea Gold | Published: 6/12/2015
A Republican political operative was sentenced to two years in prison after becoming the first person convicted of illegally coordinating campaign donations between a super PAC and a congressional campaign. Tyler Harber said he knew what he was doing was wrong, but he did it anyway because of his desire to win elections and his belief that the law banning such coordination is routinely ignored. “This shows [the U.S. Justice Department is] willing to venture into areas of criminal enforcement in the 2016 election, beyond what they had done previously,” said Kenneth Gross, a former associate general counsel at the FEC.
Russ Feingold’s PAC Funded Fees, Salaries for Former Staffers, Himself
Milwaukee Journal-Sentinel – Daniel Bice | Published: 6/15/2015
Former U.S. Sen. Russ Feingold, co-author of the Bipartisan Campaign Reform Act, founded a PAC that has given only five percent of its funds to candidates and political parties. Instead, nearly half of the $7.1 million that Progressives United PAC has spent since 2011 has gone to raising more money for itself. The data also show the group has paid another sizable portion of money on salaries or consulting fees for Feingold, his top aide, and former staffers. Feingold is taking on U.S. Sen. Ron Johnson in 2016 to try to win back his old seat.
From the States and Municipalities:
Illinois – $2M Rauner Donor’s Company Does Business with State, Has Exceeded $50K Limit Past 4 Years
State Journal-Register – Bernard Schoenburg | Published: 6/13/2015
Richard Uihlein, chief executive officer of Uline, a packaging supply company, gave $2 million to Illinois Gov. Bruce Rauner’s campaign fund in December. Uihlein’s wife, Elizabeth, is president of the firm, and she donated $25,000 to Rauner in October. The company has done more than $50,000 in business with the state in each of the last four years, which means the contributions may have violated state campaign finance law.
Kentucky – John Schaaf to Head Kentucky Legislative Ethics Commission
Connecticut Post; Associated Press – | Published: 6/16/2015
The Kentucky Legislative Ethics Commission named current general counsel John Schaaf as its new executive director effective August 1. Schaaf has worked as the commission’s lawyer since 2004, following 16 years as general counsel of the Legislative Research Commission. He helped craft legislation in 1992 that paved the way for ethics reform in the state.
Massachusetts – Lobbyists Were Quick to Donate to Both Baker, Coakley
WCVB; Associated Press – | Published: 6/13/2015
Lobbyists hedged their bets during the 2014 Massachusetts gubernatorial race, often giving to both Charlie Baker and Martha Coakley. The strategy of contributing to multiple candidates in the same race is not new, according to Pam Wilmot, executive director of Massachusetts Common Cause. “Lobbyists give because they want access – that means access to whoever is elected and the best way to ensure that is to give to both candidates,” Wilmot said.
New York – Education Reforms Spur N.Y. Lobbying ‘Arms Race’
USA Today – Jon Campbell (Gannett Newspapers) | Published: 6/14/2015
Various education interests have spent at least $124 million trying to influence New York lawmakers, officials, and the general public at the state and local level since the start of 2006, including a record of at least $16 million last year. That is in addition to $45.3 million in lobbying expenses reported by the New York State United Teachers union and its New York City affiliate over the past nine years. They are tallied as labor organizations, not education groups, by the state’s lobbying regulator. Add in political spending and the numbers are starker: Education interests and teachers unions have spent $285.5 million on lobbying, campaign contributions, and independent political expenditures over the past decade.
Pennsylvania – Fifth Former LCB Official Accused of Violating State Ethics Laws
Pittsbugh Tribune-Review – Kari Andren | Published: 6/12/2015
A former state Liquor Control Board (LCB) executive was fined for illegally accepting gifts. The Pennsylvania Ethics Commission ordered Timothy Fringer to pay $7,200. The commission said Fringer, the board’s former chief of product management and pricing, accepted gifts from vendors such as meals, golf outings, and tickets to sporting events. Fringer told investigators he was instructed to accept the gifts by Jim Short, the LCB’s former marketing director, and as long as no one complained, “it’s like it never happened.” Short and three other officials in 2014 were fined for a variety of violations stemming from gifts they received from vendors.
Pennsylvania – Some Critical That Officials Caught in Sting Keep State Pensions
Philadelphia Inquirer – Craig McCoy and Angela Couloumbis | Published: 6/13/2015
By pleading guilty to violating the state’s conflict-of-interest law, four defendants in a Pennsylvania corruption case are now disgraced. The two legislators in office at the time of their plea had to resign immediately, as required by the state constitution. But former Philadelphia Traffic Court President Judge Thomasine Tynes and the former lawmakers – Michelle Brownlee, Harold James, and Ronald Waters – did not get hit with prison time or have to forfeit their annual government pensions, estimated at $54,000 to $85,000. To critics, the deals seem unduly lenient, especially the failure to go after their taxpayer-financed retirement checks.
Utah – Ex-A.G. Mark Shurtleff Defers Evidence Hearing; Prosecutors Amend Charges
Deseret News – Dennis Romboy | Published: 6/15/2015
Prosecutors amended charges against former Utah Attorney General Mark Shurtleff, dropping three bribery counts his lawyer insists were the foundation of allegations that the state’s former top lawyer had operated a “pay-to-play” scheme while in office. Prosecutors say Shurtleff accepted money and gifts like beach vacations and the use of luxury homes and boats while he was attorney general. Seven charges remain against Shurtleff, including accepting improper gifts, obstruction of justice, and a count alleging he tried to bribe a victim to derail an investigation. It appears that prosecutors are tailoring the charges to the evidence, not necessarily scaling back the case, said former prosecutor Kent Morgan. The charge of accepting improper gifts is generally simpler to prove at trial than bribery.
Washington – Lawmakers’ Watchdog Asks for Money
Tacoma News Tribune – Jerry Cornfield | Published: 6/15/2015
The interim executive director of the Washington Public Disclosure Commission (PDC) has been asking lawmakers for more money in the next state budget to help deal with a backlog of enforcement cases. Under the Senate budget proposal, the job of general counsel would be eliminated and a portion of the savings used to hire a contract lawyer. Also, the Senate approach would axe one position handling requests from the public and another one dealing with the agency’s website and campaign finance database. “This work is important; it is part of that entire ecosystem of good government,” said Fred Kiga, who took over at PDC on June 1.
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.
June 12, 2015 •
News You Can Use Digest – June 12, 2015
National: Eyeing 2016, G.O.P Embraces Digital Strategies, but Doubts Persist New York Times – Ashley Parker | Published: 6/10/2015 With the 2016 campaign already underway, Republicans are eager to show they have learned the lessons of past election cycles and are […]
National:
Eyeing 2016, G.O.P Embraces Digital Strategies, but Doubts Persist
New York Times – Ashley Parker | Published: 6/10/2015
With the 2016 campaign already underway, Republicans are eager to show they have learned the lessons of past election cycles and are placing a premium on hiring top people to handle digital strategy and tactics. This type of work – often described in political circles as digital, data, and analytics – encompasses many areas, from building email systems for small-dollar fundraising to generating buzz on social media to analyzing data to help direct ads at specific groups of voters. But their immediate problem is slightly more low-tech: the basics of supply and demand. “Shopping around for a digital data firm was already difficult, and when you’re one of 20 possible candidates in a party that has yet to establish its own expertise in this area, it’s even harder,” said Sasha Issenberg, the author of “The Victory lab: The Secret Science of Winning Campaigns.”
Federal:
Kevin McCarthy’s Flair for Fundraising Fuels His Swift Rise to Power in House
Los Angeles Times – Noah Bierman and Evan Halper | Published: 6/5/2015
U.S. Rep. Kevin McCarthy, the new House majority leader, commands a multimillion-dollar political operation featuring lavish meals, opulent getaways with lobbyists, and privately chartered aircraft. In the two years leading up to last fall’s election, McCarthy, through his re-election campaign and leadership PAC, spent $140,000 on steakhouses alone. He paid $426,000 to companies that charter private jets, covering 46 trips. And he raised at least $10.5 million for his own and party political committees. That spending and fundraising have fueled one of the fastest rises to power in congressional history.
Senator Would Limit Lobbyist Money That Fueled Liberal Allies
Center for Public Integrity – Carrie Levine and Michael Beckel | Published: 6/4/2015
U.S. Sen. Michael Bennet introduced the Lobbying and Campaign Finance Reform Act, a bill that would, among other things, change the way registered lobbyists can support campaigns and also tweak the requirements for who must register as a lobbyist. This latter change would be accomplished by nixing the 20 percent rule, which says that only people who spend more than 20 percent of their time on lobbying activities must register as lobbyists. This has allowed many lobbyists to avoid registration, which can obscure lobbying activity from the public. The bill would also ban registered lobbyists from bundling campaign contributions and keep members of Congress from asking lobbyists for financial support while Congress is in session. Bennet introduced the same bill in 2014, but it never got out of committee.
Shaun McCutcheon Blew Up Campaign-Finance Law and Became a GOP Hero. Then He Set His Sights on Paris Hilton.
Washingtonian Magazine – Luke Mullins | Published: 6/7/2015
A few years ago, Scott McCutcheon was running his own engineering firm near Birmingham, Alabama, and leading a fairly anonymous life. He had, however, begun writing checks to benefit Republican candidates across the country. Before long, his ambitions for a more conservative America collided with the complex world of campaign finance, including the law that capped how much money an individual can donate. The Supreme Court in McCutcheon v. FEC ruled the limits were unconstitutional restrictions on free speech. McCutcheon now travels the country telling his story and has been on television programs such as Meet the Press. And his victory has gotten him invited to a lot of parties, hobnobbing with Republican politicians, as well as celebrities like Paris Hilton.
Two FEC Officials Implore Agency to Curb 2016 Election Abuse
USA Today – Fredreka Schouten | Published: 6/8/2015
FEC Chairperson Ann Ravel and Commissioner Ellen Weintraub are filing a formal petition, urging their own agency to write rules to clamp down on political spending and unmask the anonymous money in elections. FEC petitions of this kind typically are made by outsiders – organizations or individuals trying to spur the nation’s election regulators take up some matter. Ravel said no sitting commissioner has ever filed such a petition in the agency’s 40-year history. The six-member commission is locked in partisan gridlock, however, often deadlocking on major cases. The action will not force the FEC to start writing rules, but such petitions typically trigger an opportunity for public comment.
Why So Many Women Are Raising Money for Hillary Clinton
Washington Post – Matea Gold | Published: 6/7/2015
Energized by the prospect of helping Hillary Clinton make history, many women are activating their personal networks for the first time to pool contributions for her presidential campaign, helping Clinton tap into new sources of cash as she assembles what is expected to be a more-than-$1 billion operation. Their efforts come ahead of the public launch of a formal program by the campaign to organize female fundraisers. Analea Patterson, a lawyer in Sacramento, said she decided to take on the project after her eight-year-old daughter asked her why there has never been a female president. “I didn’t have a good answer – I have two daughters, and I want them to grow up in a world where they don’t see barriers for women,” said Patterson.
From the States and Municipalities:
Alabama – Legislation Puts More Enforcement in Campaign Finance Reporting Laws
Decatur Daily – Mary Sell | Published: 6/9/2015
Senate Bill 241, which was sent to Alabama Gov. Robert Bentley for his signature, amends current law to clarify when campaign contributions are received and expenditures are made. Under the legislation, a donation must be reported either within 10 days after a check is received or at the time of deposit, whichever is earlier. Expenditures are made the day they are authorized. The bill also gives the state Ethics Commission the power to interpret and enforce campaign finance laws, issue advisory opinions, issue penalties for inaccurate reports, and hear appeals of penalties levied by the secretary of state or local probate office.
California – Businesses with Stake in California Politics Utilize Capitol Grounds
Sacramento Bee – Jeremy White | Published: 6/7/2015
Advocacy outside the Capitol building is part of the daily rhythm of California politics. On any given day, interest groups organize rallies on the steps or lawn to promote or condemn bills, often with legislators urging participants on. By contrast, corporate-sponsored events are often free of any explicit legislative focus. But the vents do offer increased visibility and exposure to policymakers and their staff. Any such occasion serves a dual purpose, said political consultant Steven Maviglio. “It’s always the carrot-and-stick approach: the lobbyists do the heavy lifting inside the building, and the soft and cuddly stuff is on the outside,” Maviglio said.
Hawaii – Contractor Campaign Contributions Raise Concerns of Corruption
Honolulu Civil Beat – Nick Grube | Published: 6/10/2015
The Ninth U.S. Circuit Court of Appeals upheld the Hawaii law that bans government contractors from donating to candidates. But the state cannot block individuals from contributing to campaigns, even if they own a company that has ongoing contracts with state and local governments. The same rule applies to top executives, employees, and family members of government contractors. Hawaii Campaign Spending Commission Executive Director Kristin Izumi-Nitao said such contributions are lawful as long as they are within legal limits and the money does not come directly from the company’s treasury, such as through a reimbursement or end-of-year bonus. “That’s why you see a lot of these business owners giving from their own pocket,” Izumi-Nitao said.
Hawaii – Ethics Director Survives Political Challenge
Honolulu Civil Beat – Ian Lind | Published: 6/10/2015
The Hawaii Ethics Commission took no action against Les Kondo, the panel’s executive director, after completing an evaluation of his job performance stemming from recent criticism that his office has overstepped its bounds in enforcing ethics rules. After three-and-a-half hours behind closed doors in executive session, the commission emerged to announce it had completed its evaluation and that further reviews would be conducted in the future as situations arise.
Massachusetts – Baker, State GOP’s Use of Federal Funds Questioned
Boston Globe – Frank Phillips | Published: 5/8/2015
Since Massachusetts Gov. Charlie Baker took office in January, his campaign committee has used the state Republican Party’s staff and its headquarters to solicit, collect, and organize donations at events to bulk up his depleted political account, according to several party officials and others involved in the fundraising for the governor. This is despite a 1998 Massachusetts law banning the use of federal funds for state political activities. Watchdogs say the practice of using federal funds is contrary to the statute’s purpose of ensuring only money raised and disclosed according to state laws is used to influence state elections.
New York – Carl Heastie’s Campaign Spending Blurs Line between Political and Personal
New York Times – Russ Buettner | Published: 6/8/2015
New York Assemblyperson Carl Heastie’s campaign spending received little attention during his first 14 years in office. But in February, he became speaker, one of the most powerful positions in state government. Heastie pledged to enact ethics reform, but a review of his campaign disclosure records suggests he has frequently used political donations to burnish his lifestyle. In addition to keeping his car in good repair, his campaign money has been used to cover expensive restaurant and nightclub bills, evenings in a karaoke bar with his staff, and tickets to football games. State law prohibits the use of campaign funds for personal purposes. A Heastie spokesperson said the speaker had always followed the applicable laws and all of the spending in question was for legitimate political purposes.
Pennsylvania – Fourth Defendant in Sting Case Pleads Guilty
Philadelphia Inquirer – Angela Couloumbis and Craig McCoy | Published: 6/8/2015
Pennsylvania Rep. Michelle Brownlee pleaded guilty to accepting money from an undercover informant who videotaped the conversations in a bribery-related probe. Brownlee, of Philadelphia, became the fourth official to admit to taking money or gifts in return for official acts in the investigation. She pleaded guilty to a conflict-of-interest charge, was sentenced to 18 months of probation, and agreed to resign her House seat. Brownlee admitted to accepting $2,000 wrapped in a napkin while providing the informant posing as a lobbyist special access to her office.
Rhode Island – Ex-RI House Speaker Fox Gets 3 Years in Prison
Providence Journal – Katie Mulvaney | Published: 6/11/2015
Former Rhode Island House Speaker Gordon Fox was sentenced to three years in federal prison on charges of bribery, wire fraud, and filing a false tax return. The judge also ordered him to pay $109,000 in restitution. Fox was accused of taking $52,000 bribe to help grant a liquor license to Shark Sushi Bar and Grill while he a member of the Providence Board of Licenses. He was also accused of using campaign funds to pay for personal expenses such as his mortgage, car loan payments, and American Express payments for purchases at stores such as Tiffany’s and Urban Outfitters.
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.
June 5, 2015 •
News You Can Use Digest – June 5, 2015
National: Poll Shows Americans Favor an Overhaul of Campaign Financing New York Times – Nicholas Confessore and Megan Thee-Brenan | Published: 6/2/2015 A new poll showed both Democrats and Republicans favor an overhaul of campaign finance laws, including limiting the amount […]
National:
Poll Shows Americans Favor an Overhaul of Campaign Financing
New York Times – Nicholas Confessore and Megan Thee-Brenan | Published: 6/2/2015
A new poll showed both Democrats and Republicans favor an overhaul of campaign finance laws, including limiting the amount of money that can be spent by super PACs and forcing more public disclosure on organizations now permitted to intervene in elections without disclosing the names of their donors. A majority also reject the argument that political money is a form of speech protected by the First Amendment. More than four in five Americans say money plays too great a role in campaigns, while two-thirds say the wealthy have more of a chance to influence the elections process than the average citizen.
The Murky (and Apparently Widespread) Use of License Plates as Political Favors
Washington Post – Amber Phillips | Published: 6/2/2015
In several states, low-number license plates – the less numerals, the better – are a way to show off someone’s political connections. That is because you cannot just walk into a Departments of Motor Vehicles and request one; you have to know someone to give you the plate. Then-New Hampshire Gov. John Sununu credits his distribution of the desirable license plates with helping George H.W. Bush win the state in a competitive 1988 Republican primary.
Federal:
Dennis Hastert’s Lobbying Firm Reeling after Indictment
Politico – Tarini Parti and Anna Palmer | Published: 6/4/2015
Former U.S. House Speaker J. Dennis Hastert resigned his job as co-leader of Dickstein Shapiro’s public policy and political law practice in the wake of his indictment for lying to federal investigators about structured cash withdrawals to an individual “in order to compensate for and conceal his prior misconduct.” Dickstein Shapiro is already scrambling to rebuild amid a client exodus, tumbling lobbying revenue, and high-profile departures. Some expressed doubts about the firm’s ability to right the ship. “It is going to make clients scratch their heads how does this kind of stuff, particularly at a law firm, go unnoticed and unchecked,” said a managing partner at a Washington law firm. “They’ve already lost a significant number of partners, and now they have a failing management structure allowing allegedly criminal activity under its nose ….”
Payments by Hastert Linked to Report of Sexual Abuse
New York Times – Michael Shear and Michael Schmidt | Published: 5/28/2015
Former U.S. House Speaker J. Dennis Hastert was paying a man to not say publicly that Hastert had sexually abused him, according to sources briefed on the evidence uncovered in an FBI investigation into the payments. Federal prosecutors indicted Hastert on allegations he made cash withdrawals designed to hide those payments and for lying to federal authorities about the purpose of the withdrawals. The man, who was not identified in court papers, told the FBI he had been molested by Hastert when Hastert was a high school teacher and wrestling coach.
From the States and Municipalities:
Alaska – Juneau APOC Office Skeletal after Cuts
Peninsula Chronicle – Katie Moritz (Morris News Service) | Published: 6/1/2015
The Juneau office of the Alaska Public Offices Commission (APOC), which is responsible for holding the state’s approximately 135 lobbyists financially accountable, took a crippling budget hit from lawmakers when it was dealt a cut that eliminated both existing full-time positions. When the new fiscal year begins, the current part-time assistant will become the one full-time employee in the office. Leslie Ridle, deputy commissioner of the Department of Administration, said she does not think one staff member in Juneau and seven staff statewide is enough to handle APOC’s workload or uphold its mission.
California – Law Students Propose Bill to Close Lucrative Capitol Lobbying Loophole
Los Angeles Times – Melanie Mason | Published: 6/2/2015
Three law students have sponsored a bill that would designate as lobbying the act of communicating with government officials in hopes of influencing how they spend taxpayers’ money on goods and services, and require lobbyists to publicly disclose that activity. Assembly Bill 1200 would cast sunlight into an opaque and lucrative corner of lobbying. The students did research, drafted bill language, and shopped for a legislator to carry their proposal.California Assemblyperson Richard Gordon became its official author. “When the students came to me and said, ‘do you realize there is this loophole that allows folks to lobby relative to contracting?’ I said you’ve got to be kidding me,” Gordon said.
Colorado – High-Powered Attorneys, Lobbyists Give Big to Denver Candidates
Denver Post – Jon Murray | Published: 5/31/2015
A Denver Post analysis of $4.1 million given to candidates in the run-up to Denver’s municipal elections found at least $290,000 came from attorneys and lobbyists. Another $159,000 was donated by individuals involved in development or real estate. That industry is booming in Denver but has been at the center of one of the election’s biggest issues – the pace of development. Unions, city contractors, and business associations also contributed heavily to candidates. Watchdogs say such hefty direct donations from big interests point to a need for tighter contribution limits in Denver, or some kind of public financing that might amplify the impact of contributions from small donors.
Connecticut – Senate Democrats Reject Campaign Finance Overhaul
Hartford Courant – Jenny Wilson | Published: 6/2/2015
The Connecticut Senate rejected a House-approved bill that would have imposed limits on how much state parties can spend to support a publicly funded campaign. The legislation also would have reduced the maximum contribution that individuals could give to state parties to $5,000. The measure was a direct response to the state Democratic Party spending over $1 million last year to support the campaigns of Sen. Ted Kennedy, Jr. and Gov. Dannel Malloy, who were both participating in the Citizen’s Election Program.
Hawaii – Antiquated Law Spares Lobbyists in Honolulu Ethics Scandal
Honolulu Civil Beat – Nick Grube | Published: 6/1/2015
Nestor Garcia, a former Honolulu City Council member, agreed to pay an $8,100 fine after the Ethics Commission found evidence he illegally accepted free meals and golf from lobbyists. The commission said Garcia failed to disclose a conflict-of-interest on a number of bills and resolutions that affected the lobbyists’ interests. But amid the growing scandal, lobbyists have come out relatively unscathed. There has been little scrutiny of their actions, and it is doubtful there will be any punitive action taken against them. Honolulu Ethics Commission Executive Director Chuck Totto would like to update the ethics code on lobbyist gift-giving, but does not have the staff to the handle that extra workload.
New York – How Lobbying in Albany Works
New Yorker – Chris Smith | Published: 5/28/2015
With the recent indictments of the leaders of the New York Assembly and Senate, lobbyists could have even more influence in shaping public policy. But lobbyists usually try to stay under the radar, so their day-to-day activities are often unclear. In an interview, a prominent lobbyist in Albany gave an inside view of his profession.
Pennsylvania – City Council Gives Initial Thumbs Up to New Rules on Independent PACs
KYW – Mike Dunn | Published: 5/29/2015
A Philadelphia City Council committee approved a bill authored by the city’s Board of Ethics that would impose new reporting requirements on independent PACs and non-profits that spend money in support of a candidate. The legislation would affect any person, political committee, or non-profit that spends more than $5,000 within 50 days of an election. They would face four reporting deadlines within the 50 day pre-election period, and they would have to list all funding received and expenditures made, not just the spending that triggered the filing.
Pennsylvania – Two More Dems Plead Guilty in Sting Case
Philadelphia Inquirer – Angela Couloumbis and Craig McCoy | Published: 6/1/2015
A state lawmaker and an ex-representative, both Philadelphia Democrats, pleaded guilty to criminal charges stemming from a bribery scandal. Rep. Ron Waters pleaded guilty to nine conflict-of-interest counts. He resigned his seat and will serve 23 months on probation. Former Rep. Harold James pleaded guilty to a single count of conflict-of-interest and received 12 months of probation. The cases were built on secret recordings by an informant posing as a lobbyist, who offered cash or gifts in exchange for promises of official favors. The investigation had been a secret until it was reported that Pennsylvania Attorney General Kathleen Kane had decided against pursuing it. Kane inherited the case from her predecessors and she attacked it as too fatally flawed to win convictions.
Texas – Overhaul of Scandal-Torn State-Contracting System Wins Final Approval
Fort Worth Star-Telegram – Dave Montgomery | Published: 6/1/2015
Texas lawmakers approved a bill aimed at increasing transparency and accountability in state contracts. The legislation prohibits conflicts-of-interest between agency heads and vendors, strengthens top-level supervision in the awarding of contracts, and increases scrutiny of vendor performance in carrying out the contracts. Agencies would also be required to post on their websites any noncompetitively bid contract along with the statutory justification for why it was awarded. The bill would require an agency board to approve any contract over $1 million.
Vermont – Condos Pitches Ethics Commission in Wake of Impropriety Allegations
VTDigger.org – Anne Galloway | Published: 6/3/2015
Vermont Secretary of State Jim Condos is calling for the establishment of a state ethics commission. The Center for Public Integrity in 2012 gave Vermont an overall grade of “D+” for its ethics laws. It was “in large part because we do not have an authoritative ethics commission or the required financial disclosures existing in nearly every other state,” Condos wrote in his proposal. He said his office has no authority to investigate or enforce against such problems, and the people complaining often ended up feeling frustrated and increasingly cynical.
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.
May 29, 2015 •
News You Can Use Digest – May 29, 2015
National: Meet the ‘Dark Money’ Phantom Center for Public Integrity – Carrie Levine | Published: 5/26/2015 David Langdon is a behind-the-scenes player among the small army of lawyers working to keep secret the origins of millions of dollars flowing to candidates. […]
National:
Meet the ‘Dark Money’ Phantom
Center for Public Integrity – Carrie Levine | Published: 5/26/2015
David Langdon is a behind-the-scenes player among the small army of lawyers working to keep secret the origins of millions of dollars flowing to candidates. Langdon is also a legal soldier for conservative, often Christian, nonprofit organizations that together spend millions more to influence public policy and wield great influence among evangelical voters. Since the 2010 election cycle, at least 11 groups connected to Langdon or his firm have collectively spent at least $22 million on federal and state elections and ballot initiatives around the country.
Should We Pay Politicians More?
Politico – Kevin Hartnett | Published: 5/27/2015
The prime minister of Singapore, Lee Hsien Loong, makes $1.7 million a year, more than four times as much as the next highest paid national executive – Barack Obama, who earns $400,000 a year. In Singapore, the salaries are seen as an anti-corruption measure. In the U.S., the idea of paying elected officials like corporate chief executives is politically unthinkable. But Renee Bowen, an economist at Stanford, and Cecilia Mo, a political scientist at Vanderbilt, used a game-theory model to argue that when elected representatives are paid more, they are more invested in keeping their jobs, and more likely to pursue citizen-friendly policies.
Federal:
FEC Deadlocks on Wealthy Donor Giving Limits
Washington Times – Tom Howell, Jr. | Published: 5/21/2015
The FEC deadlocked on a proposal to write new rules in the wake of the U.S. Supreme Court’s McCutcheon decision last year that struck down aggregate campaign finance limits, freeing wealthy Americans to contribute money to as many candidates and political parties as they want. Democrats on the FEC signaled they had been chastened by another effort last year to impose campaign finance rules on Internet videos, after 5,000 comments poured in to commissioners telling them to lay off Internet speech as they considered post-McCutcheon rules.
K Street’s Gains Felt at Boutique Firms, Too
The Hill – Megan Wilson | Published: 5/27/2015
The surge in business on K Street during the first months of 2015 was not limited to Washington’s biggest lobby shops as many smaller lobby and law firms also saw gains. Smaller firms have long decried the standard practice of evaluating Washington’s top shops by earnings alone, arguing it puts them at a disadvantage by appearing to not keep up with their much larger counterparts. When looking at the figures posted by K Street for the first three months of the year, analysts instead ranked industry players on year-over-year increases in total and average per-client revenue, fees per lobbyist, and client retention rates.
Supreme Court to Weigh Meaning of ‘One Person One Vote’
New York Times – Adam Liptak | Published: 5/26/2015
The U.S. Supreme Court said it will decide an important “one person, one vote” case next term to determine whether states should consider total population – or only eligible voters – when drawing roughly equal legislative districts. A shift from using total population would have an enormous impact in states with large immigrant populations, where greater numbers are children or noncitizens. It would shift power from urban areas to more rural districts. The Supreme Court in 1964 ruled states must divide electoral districts population-wise so that political power is equally shared. But it did not specify whether total population or eligible voters was the standard to use.
From the States and Municipalities:
Arizona – Phone Records Show Close Contact between Regulator, APS and ‘Dark Money’
Arizona Republic – Ryan Randazzo | Published: 5/21/2015
Debates over solar energy, and a flood of money from non-profit groups into the campaigns for those who sought to regulate utilities, marked the 2014 Arizona Corporation Commission election. During that time, commission Chairperson Bob Stump sent more than 50 private text messages to an Arizona Public Service Co. (APS) executive and 46 to a political “dark money” organizer, according to a non-profit investigating the commission. Critics say regulators should not have such close contact with the utilities they oversee, and the utilities should not be participating in political campaigns, which could violate election laws and rules that prevent elected officials from campaigning with public resources. APS is widely believed to have contributed to groups that supported two Republicans in the Corporation Commission race, but utility officials will neither confirm nor deny such contributions.
Hawaii – Under Fire: Hawaii ethics director defends his strict ethical views
Honolulu Civil Beat – Ian Lind | Published: 5/27/2015
The Hawaii Ethics Commission is evaluating its executive director, Les Kondo, following complaints that he was going too far with ethics rules. House Speaker Joseph Souki sent a letter to the commission complaining about its “recent attempts to prohibit common and regular practices,” including receiving gifts, meals, and charitable fundraiser tickets of a certain value. Teachers also have been upset about a recommendation that educators who organize and chaperone educational trips should not get a free ride from tour companies. “It’s not my job to tell people what they want to hear or let them do what they want to do; it’s my job to do what’s right, not what’s popular,” Kondo told his colleagues.
Missouri – Lawmakers Fail to Ramp up Ethics Laws for Missouri Officials
Columbia Missourian – Summer Ballentine (Associated Press) | Published: 5/24/2015
Despite months of discussions and assurances from legislative leaders who said this year would be different, ethics reform fell apart in the last few weeks of the session. That means Missouri for at least another year will remain the only state with the trio of unlimited campaign contributions, uncapped lobbyist gifts, and no laws preventing legislators from leaving office and immediately becoming lobbyists. Lawmakers’ failure to pass ethics bills comes as the Capitol is under increased scrutiny after the House ended the legislative session in scandal. Former House Speaker John Diehl admitted to exchanging sexually suggestive text messages with a 19-year-old Capitol intern and resigned the last day of the session.
Montana – Court Reverses Ruling on Montana Campaign Contribution Limits
The Missoulian – Matt Volz (Associated Press) | Published: 5/26/2015
The Ninth U.S. Circuit Court of Appeals invoked the Supreme Court’s Citizen United decision to raise the bar for states to justify limiting campaign donations. States can limit contributions if they have a legitimate interest in doing so. But proving that interest has changed since the Citizens United decision that said corporations can spend unlimited amounts in elections, said the three-judge panel. Before Citizens United, states only had to show they aimed to curb the influence of big money on politicians. After Citizens United, states must show more specifically that their laws are stopping an exchange of money for political favors, according to the opinion. The ruling by the Ninth Circuit was made in a case that challenged Montana’s contribution limits as violating donors’ rights to free speech.
New York – JCOPE’s New Guidance, or: You might be a lobbyist if …
Albany Times Union – Chris Bragg | Published: 5/27/2015
Proposed rules issued by the Joint Commission on Public Ethics said political consultants who take certain actions related to lobbying efforts must register, even if they do not directly ask lawmakers or agencies to act on bills or regulations. That could force firms that currently enjoy close relationships with New York lawmakers, and which simultaneously have clients with interests before those legislators, to start disclosing more interactions with them. Another provision directs firms who control the message and content of grassroots lobbying campaigns to register as lobbyists.
Oregon – Forget Fines – Oregon Prefers Warnings for Public Officials Guilty of Ethics Violations
Portland Oregonian – Nick Budnick and Laura Gunderson | Published: 5/26/2015
The Portland Oregonian found the state ethics commission has deliberately lightened up on those accused of abusing their public positions. The Oregon Government Ethics Commission has negotiated reduced penalties for every case it has handled involving a public official since 2008. “The commission is not one where we stand there looking to punish someone,” said Chairperson Kenny Montoya. Ron Bersin, the agency’s executive director, said the commission relies on education and training to keep public officials honest, but the panel hammers errant public officials when it is justified.
Tennessee – Ethics Panel Fading to Obscurity 10 Years after Tenn. Waltz
Albany Times Union – Erik Schelzig (Associated Press) | Published: 5/25/2015
May 26 marked the 10th anniversary of the arrest of five former lawmakers in the FBI’s sting operation called “Tennessee Waltz.” The case involved a scheme by state lawmakers to collect money in exchange for shepherding through bills on behalf of E-Cycle Management, which was an FBI front company. Following the scandal, lawmakers were spurred into trying to improve transparency and ethics in the statehouse. A decade later, most of those efforts have faded.
Texas – House Passes Ethics Bill, Senate Showdown Likely
Texas Tribune – Jay Root | Published: 5/26/2015
The Texas House approved an ethics bill that would force disclosure of “dark money” in campaigns. The legislation would also lower the amount lobbyists can spend to entertain state officials without disclosing the names of the politicians. But the House turned down an amendment to close a loophole that allows lobbyists to easily evade that disclosure by teaming up with other lobbyists to spend far more than the current $114, lowered to $50 in the House bill. The measure faces a showdown with the Senate over the details of their competing versions.
Vermont – Legislative Wrap: Lobbyist disclosure tops transparency effort
VTDigger.org – Erin Mansfield | Published: 5/22/2015
Vermont Gov. Peter Shumlin is expected to sign Senate Bill 93, which increases the number of times per year that lobbyists and their employers must file expenditure reports from three to seven. Lobbyists are already required to register with the secretary of state’s office, but they only need to report spending once during the legislative session – April 25, when the session is almost over. The new law would require monthly reporting while lawmakers are in Montpelier. The bill also requires lobbying groups to disclose the name of the organization in ads and file a report within 48 hours of running an advertising campaign worth $1,000 or more.
Virginia – Conservative Group Paying Ken Cuccinelli’s Campaign
Washington Post – Rachel Weiner | Published: 5/26/2015
Former Virginia Attorney General Ken Cuccinelli won a legal victory against a conservative PAC he accused of duping campaign donors. Cuccinelli and the Conservative StrikeForce PAC reached a settlement that will prohibit the PAC from using a candidate’s name for future fundraising efforts against the candidate’s wishes. The PAC also agreed to pay Cuccinelli’s failed gubernatorial campaign $85,000 and give it exclusive rights to the PAC’s direct mail and email donor lists. Cuccinelli said the PAC used his name without his permission to mislead “thousands of innocent Americans” who thought they were helping his campaign.
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.
May 22, 2015 •
News You Can Use Digest – May 22,2015
National: Albany Corruption Inquiry Hurts Arizona Company That Hired Dean Skelos’s Son New York Times – Susanne Craig | Published: 5/18/2015 Dean Skelos, then the leader of the New York Senate, and his son, Adam, were arrested on extortion, fraud, and […]
National:
Albany Corruption Inquiry Hurts Arizona Company That Hired Dean Skelos’s Son
New York Times – Susanne Craig | Published: 5/18/2015
Dean Skelos, then the leader of the New York Senate, and his son, Adam, were arrested on extortion, fraud, and bribe solicitation charges recently. The company at the center of the scandal is AbTech Industries, a small environmental firm based in Arizona. Prosecutors say AbTech hired Adam Skelos to gain influence in its attempt to win government work. The company’s stock has fallen more than 70 percent since the scandal was first reported. In recent weeks it has seen work suspended on a big contract in Nassau County. Separately, AbTech says the Corvais Group, a property management firm, canceled a partnership it had with it. In addition, the Securities and Exchange Commission has begun to scrutinize AbTech.
Federal:
‘Campaigns’ Aren’t Necessarily Campaigns in the Age of ‘Super PACs’
New York Times – Nicholas Confessore and Eric Lichtblau | Published: 5/17/2015
The 2016 contenders are exploiting loopholes and regulatory gray areas to transform the way presidential campaigns are organized and paid for. Their campaigns are intricate constellations of political committees, super PACs, and tax-exempt groups, engineered to avoid fundraising restrictions imposed on candidates and their parties after the Watergate scandal. Major costs of each candidate’s bid, from television advertising to policy development, are now being shifted to legally independent organizations that can accept unlimited contributions from wealthy individuals, corporations, and labor unions.
Critics Hear E.P.A.’s Voice in ‘Public Comments’
New York Times – Eric Lipton and Coral Davenport | Published: 5/18/2015
Environmental Protection Agency (EPA) Administrator Gina McCarthy told a Senate committee in March that the agency had received more than one million comments about its proposed rule intended to protect the nation’s drinking water, and nearly 90 percent favored the agency’s plan. McCarthy is expected to cite those comments to justify the final rule. But critics say there is a reason for the overwhelming result: the EPA had a hand in manufacturing it. In a campaign that tests the limits of federal lobbying law, the agency orchestrated a drive to counter political opposition from Republicans and enlist public support in concert with liberal environmental groups and a grassroots organization aligned with President Barack Obama.
Hillary’s Speech Disclosures Come Under Fire
Politico – Josh Gerstein | Published: 5/20/2015
The Clinton Foundation said it will release details on nearly 100 speeches made by Hillary Clinton, her husband, Bill, and daughter Chelsea that ended up in the account of the global charity. Aides to the Clintons contend that when they delivered such speeches, the former president and former secretary of state were acting as officials of the Clinton Foundation, so the disclosure requirement for payments directed to charity by a government official, presidential candidate, or spouse do not apply. Several ethics lawyers told said they believe the Clintons’ speeches do not fall within the cited exception because there is little indication the addresses delivered across the U.S. and overseas had anything to do with the foundation.
From the States and Municipalities:
Arizona – Clean Elections Panel Advances New Dark-Money Spending Rules
Arizona Daily Sun – Bob Christie (Associated Press) | Published: 5/14/2015
The Arizona Clean Elections Commission voted to open up nearly a dozen proposed rule changes for public comment, including a contentious proposed rule change that would impose new criteria in determining whether a group’s primary purpose is electioneering. One rule would require outside groups to file reports if they spend more than $500 to advocate for or against a candidate or voter initiative. The reports would disclose spending and donors.
Arkansas – Fiscal 2016 Budget Cut Vexes Ethics Panel Chief
Arkansas Online – Spencer Willems | Published: 5/19/2015
During a monthly meeting of the Arkansas Ethics Commission, Director Graham Sloan said his staff will have less money than was budgeted this year and nearly a quarter less than was earmarked by legislators this past session. The cut, which Sloan said he learned of recently, would drop funding for the next fiscal year from about $900,000 to about $705,000, which is just under the commission’s current authorization for this year. Sloan said the cut comes at a point when the commission has never been busier and will cause his office to reduce staff and services.
California – Details Hidden On Legislative Lawyers Drafting Bills for Influential Groups
Capital Public Radio – John Meyers (CaliforniaReport.org) | Published: 5/20/2015
In California, so-called unbacked bills are draft laws with no guarantee of being introduced in either house of the Legislature. Capitol insiders portray the system as one with very few limits and in which legislative staffers sometimes submit proposals for vetting that their elected bosses would never publicly endorse. The process is also accessed by lobbyists, who seek the help of the government’s bill writing experts at the Office of Legislative Counsel. Insiders say these unpublicized bills may be held on to for any possible opening a lobbyist or interest group might see, including eleventh hour maneuvers before the Legislature adjourns.
Hawaii – Ban Upheld on Political Donations by Government Contractors
Honolulu Civil Beat – Nick Grube | Published: 5/20/2015
A federal appeals court panel on upheld Hawaii’s ban on political donations by state and county contractors. The three-judge panel of the Ninth U.S. Circuit Court of Appeals also upheld the state law requiring PACs to register after spending more than $1,000 to influence an election, something officials said is necessary to follow the money during campaign season.
Louisiana – Lobbyists Pay for Louisiana Officials’ Trip, Recipients Don’t Disclose It
New Orleans Times-Picayune – Lee Zurik (WVUE) and Ben Myers | Published: 5/18/2015
Two lobbyists with the Black Alliance for Educational Options reported to the Louisiana Board of Ethics in 2011 that they had spent $1,400 apiece on the same 15 individuals. They included nine state and local elected officials, an executive-branch member, and a few staffers and spouses. None of the officials disclosed the expenses to the state. Public officials, like the lobbyists seeking to influence them, are subject to disclosure laws.
Maine – Senator Accepted Flight from J.D. Irving While Promoting Looser Mining Laws
The Sun Journal – Lance Tapley (Maine Center for Public Interest Reporting) | Published: 5/20/2015
Maine Sen. Thomas Saviello, who has worked to pass legislation allowing J.D. Irving to develop an open-pit mine in the state, accepted a free plane ride from the company’s lobbyists and did not report it to the state ethics commission. Saviello said he did not have to report the 2013 trip ride because its value was not more than $300, the threshold for reporting gifts from lobbyists, and because the purpose was fact-finding. The lobbyists involved also did not report the trip, as required by the ethics commission.
Missouri – Missouri House Speaker Resigns; Intern Breaks Silence
St. Louis Post-Dispatch – Virginia Young | Published: 5/14/2015
Missouri House Speaker John Diehl resigned one day after the revelation of sexually suggestive text messages he exchanged with a 19-year-old legislative intern. The college student with whom Diehl had exchanged messages had been an intern for another House member. She no longer works at the Capitol, and Missouri Southern State University also removed its three other interns from Jefferson City. Republicans chose Rep. Todd Richardson as the next speaker.
Rhode Island – R.I. Secretary of State Gorbea Seeks Lobbying Changes
Providence Journal – Jennifer Bogdan | Published: 5/19/2015
Rhode Island Secretary of State Nellie Gorbea’s lobbying reform proposal was the subject of a recent hearing before the House Judiciary Committee. The proposal would increase the fines for violating the law from $2,000 to $5,000. Violators could also see their lobbying privileges suspended for up to three years. The bill also would reduced the frequency with which lobbyists have to file reports during the legislative session from monthly to quarterly.
Texas – Analysis: Ethics at center stage, hurting for attention
Texas Tribune – Ross Ramsey | Published: 5/18/2015
In his State of the State speech, Texas Gov. Gregg Abbott tried to put ethics reform high on the agenda for state lawmakers He added it to his list of five so-called emergency items that could get expedited treatment by lawmakers. But not a lot has changed. Reform is still possible, but the most significant changes being proposed still have not been considered by the House, much less by a committee that would have to reconcile the Senate and House versions of reform.
Wisconsin – Records Indicate Scott Walker Was Copied on Letter Promising Loan to Donor
Milwaukee Journal Sentinel – Jason Stein and Patrick Marley | Published: 5/18/2015
Wisconsin Gov. Scott Walker’s office was copied on a letter acknowledging his job creation agency would give a $500,000 loan to a campaign donor’s construction company, raising questions about his statements that he was not aware of the deal. It was reported that the Wisconsin Economic Development Corp. gave Building Committee Inc. (BCI) the unsecured, taxpayer-backed loan in 2011. The now-defunct company’s owner, William Minahan, gave Walker’s 2010 gubernatorial campaign $10,000, the maximum individual contribution allowed under state law. BCI never repaid the loan and did not use the money to create any jobs, according to The Wisconsin State Journal.
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