National:

Move on for DRPA to Reveal Vendors’ Political Donations

Philadelphia Inquirer – Paul Nussbaum | Published: 7/30/2014

The Delaware River Port Authority’s (DRPA) audit committee reviewed a proposal to restore public access to vendors’ political contributions. Under current rules, contractors doing or seeking business with the DRPA must disclose to the agency any political contributions made in Pennsylvania and New Jersey. But the DRPA withholds those reports from the public. New Jersey’s “pay-to-play” laws require contractors of state agencies to disclose their political contributions, which must be a matter of public record. But the DRPA, as a bi-state creation of Pennsylvania and New Jersey, is not bound by that “pay-to-play” law.

Federal:

Koch-Backed Seniors Group Low-Balling Election Spending?

The Center for Public Integrity – Michael Beckel | Published: 7/30/2014

A review by The Center for Public Integrity appears to show the 60 Plus Association appears to have vastly understated its level of election spending on federal tax filings. The organization told the FEC it spent about $4.6 million on political ads and “voter contact” phone calls endorsing or denouncing federal candidates during the three months prior to the 2012 election. But it reported spending $35,000 on “direct and indirect political campaign activities” during its entire 2012 fiscal year to the IRS. It did not count toward that amount $4 million in spending it reported separately as “educating seniors by influencing the election of political candidates.”

Mini-Mega Donors Dominate Downtown Giving

Roll Call – Kate Ackley | Published: 7/29/2014

Individual lobbyists typically do not reach into the highest levels of personal campaign contributions; that is an echelon billionaires dominate. But K Street’s elite “mini-mega” donors have gone past the former federal limit of $123,200 the U.S. Supreme Court threw out this spring in its McCutcheon decision. Now that lobbyists can give to all congressional candidates, as well as to party coffers and PACs, K Street’s biggest donors have to search for new ways of saying “no.” And sometimes that translates into a simple “yes.”

Outside Money Drives a Deluge of Political Ads

New York Times – Ashley Parker | Published: 7/27/2014

In the first full midterm election cycle where outside groups have developed a sophisticated infrastructure, the consequences are already becoming apparent: a harshly negative tone dictated by the groups and a nearly nonstop campaign season that could cause voters to tune out before Election Day. The impact can be especially magnified during midterm elections because outside organizations are not distracted by a presidential race and can allocate even greater resources to single congressional contests. In many cases, candidates in individual districts, or even states, are no match financially for groups that oppose their politics.

From the States and Municipalities:

Arkansas – Tough Road for Ethics, Term Limits Item

Arkansas Business Journal – Andrew DeMillo (Associated Press) | Published: 7/27/2014

A ballot proposal to restrict lobbyists’ gifts to lawmakers and loosen Arkansas’ term limits was touted as a compromise way to put major ethics reforms on the November ballot. But the proposed constitutional amendment is facing growing opposition focused primarily on its term limits provisions. The state Republican Party’s vote to oppose the ballot measure was the latest sign of trouble for a proposal that does not have an organized campaign on its behalf and turned into a political liability for several GOP lawmakers during the spring primary campaign.

Florida – Why Won’t Florida GOP Leaders Talk about Hunting Trips to King Ranch in Texas?

Tampa Bay Times – Michael Van Sickler and Craig Putnam | Published: 7/25/2014

Florida Gov. Rick Scott in February 2012 visited the historic King Ranch in Texas, one of North America’s premier hunting grounds. State House leaders have accepted similar excursions in the past three years. The trips, records indicate, were financed all or in part with contributions from Florida’s sugar industry, right down to the hunting licenses. A 2006 state law prohibits lawmakers from directly accepting gifts like free meals and travel, but a loophole still allows them to be feted like VIPs.

Illinois – Alderman Pushes through Watchdog Limits Week after Being Probed

Chicago Tribune – Bill Ruthhart and Hal Dardick | Published: 7/30/2014

Ald. Patrick O’Connor quickly pushed through an ordinance that limits the ability of the city council’s watchdog to investigate aldermen’s campaign finances, a week after that investigator received permission to open an ethics probe of O’Connor. The measure sponsored by O’Connor could hinder Legislative Inspector General Faisal Khan’s ongoing campaign finance probes, including the one of O’Connor.

Illinois – Illinois State Fair Managers Fined for Violating Gift Ban, Taking Free Beer Tickets

The Tribune; Associated Press –   | Published: 7/28/2014

Illinois State Fair Director Amy Bliefnick and former Du Quoin State Fair chief John Rednour, Jr. were fined by the Executive Ethics Commission for doling out hundreds of free beer tickets to top officials and other fairgoers in violation of the state’s ban on officials receiving gifts. The report noted Bliefnick has accepted more than $100 worth of free beer tickets each year since she became fair manager in 2005; she was fined $1,000. Rednour was penalized $5,000 after he admitted he solicited up to $8,000 in tickets from a vendor.

Massachusetts – 3 Guilty in Probation Case

Boston Globe – Milton Valencia | Published: 7/24/2014

Former Massachusetts Probation Commissioner John O’Brien was found guilty in a scheme to rig the agency’s hiring process to favor applicants who had the backing of powerful state legislators. O’Brien’s top aide, Elizabeth Tavares, was convicted of aiding and abetting the scheme, and a deputy, William Burke III, was found guilty of participating in a racketeering conspiracy. Prosecutors say O’Brien and his aides doled out jobs to the friends of state lawmakers over more qualified candidates. In return, prosecutors alleged, the legislators routinely boosted the Probation Department budget.

Massachusetts – Massachusetts Lawmakers OK PAC Disclosure Bill

Columbus Republic – Steve LeBlanc (Associated Press) | Published: 7/30/2014

The Massachusetts Legislature passed a campaign finance bill that would immediately increase transparency for super PACs. It also doubles how much money individuals can give to state candidates each year from $500 to $1,000, beginning in 2015. House Bill 4366 is expected to be signed into law by Gov. Deval Patrick.

New York – U.S. Attorney Warns Cuomo on Ethics Case

New York Times – Susanne Craig, Thomas Kaplan, and William Rashbaum | Published: 7/30/2014

U.S. Attorney Preet Bharara, who is investigating New York Andrew Gov. Cuomo’s closing of an anti-corruption commission, is now threatening to probe the administration for possible obstruction of justice or witness tampering. The warning came after several members of the panel issued public statements defending the governor’s handling of the Moreland Commission, which Cuomo created last year with promises of cleaning up corruption in state politics but shut down abruptly in March.

Texas – Prosecutor: Price committed ‘shocking betrayal of public trust’

Dallas Morning News – Ed Timms and Kevin Krause | Published: 7/25/2014

Longtime Dallas County Commissioner John Wiley Price has been charged with accepting nearly $1 million in bribes. Price’s chief of staff and two political consultants were also charged in a 13-count indictment. U.S. Attorney Sarah Saldaña said that during a decade-long scheme, two political consultants, Kathy Nealy and Christian Campbell, provided Price with $950,000 in money, cars, and land. Authorities allege that in exchange for the bribes, Price voted in favor of lucrative contracts that were proposed by the consultants’ clients.

Virginia – Robert McDonnell Trial to Cast Unflinching Light on Virginia Couple’s Friends, Marriage

Washington Post – Matt Zapotosky | Published: 7/28/2014

The trial of former Virginia Gov. Robert McDonnell and his wife, Maureen, has begun in federal court. They are accused of accepting more than $165,000 in gifts and loans from Jonnie Williams, the founder of a dietary supplements company, in exchange for helping to promote his products. Strident language in court filings point to a no-holds-barred battle that will pit the motives and credibility of the former first couple against Williams, who will testify for the prosecution under immunity. Defense attorneys have suggested the case is politically motivated and prosecutors have stretched the meaning of federal bribery laws to cover routine and long-accepted political courtesies.

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

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

Federal:

How to Disclose Your Lobbying While Keeping the Public in the Dark

National Journal – Ben Geman | Published: 7/22/2014

Some companies’ and advocacy groups’ quarterly lobbying disclosure forms provide highly specific lists of bills and topics they are working on. But other lobbying reports deploy language so vague that they reveal almost no information at all, undermining the efficacy of federal laws aimed at keeping the public abreast of how insiders are lobbying their elected officials. The rules require quarterly reports that list both broad categories, such as energy or trade, and “specific lobbying issues” within those categories. It is the line in the reports asking for specifics – Line 16 – that is often left very vague.

Leadership War Stymies Senate Mission

Washington Post – Paul Kane | Published: 7/20/2014

The U.S. Senate has approved so few bills this year, and so little else has gotten done, that many senators say they are spending most of their time on insignificant and unrewarding work. Senators say that they increasingly feel like pawns caught between Majority Leader Harry Reid and Minority Leader Mitch McConnell, whose deep personal and political antagonisms have almost immobilized the chamber. The two men so distrust each other, and each is so determined to deny the other even the smallest political success, that their approach to running the Senate has been reduced to a campaign of mutually assured dysfunction.

Senator’s Thesis Turns Out to Be Remix of Others’ Works, Uncited

New York Times – Jonathan Martin | Published: 7/23/2014

U.S. Sen. John Walsh (D-Mont.), a decorated veteran of the Iraq war, has made his military service a main selling point on the campaign trail. Still wearing his hair close-cropped, he says his time in uniform informs his views on a range of issues. But one of the highest-profile credentials of Walsh’s 33-year military career appears to have been improperly attained. An examination of the final paper required for his master’s degree from the Army War College indicates the senator appropriated at least a quarter of his thesis on American Middle East policy from other authors’ works, with no attribution.

From the States and Municipalities:

California – Political Shakeup Looms in California

Politico – Alexander Burns | Published: 7/20/2014

For decades, Democrats and Republicans in California have experienced statewide politics as an interminable waiting game, thanks to a gang of 70- and 80-somethings from the San Francisco Bay Area who have dominated government for a generation. Rising stars in both parties have come and gone, but the state’s chief power players have remained the same. Yet the buildup of talent on the Democratic bench means it is only a matter of time before the state witnesses a genuine free-for-all among younger officeholders.

Delaware – Delaware Governor Signs Campaign Finance Reform Bills into Law

Newsworks.org – Shana O’Malley | Published: 7/22/2014

Delaware Gov. Jack Markell signed a package of campaign finance and ethics reform bills. Among the measures, Senate Bill 186 requires LLCs and corporations that donate more than $100 to disclose the name and address of one “responsible party” who exercises control over the entity. House Bill 306 will establish a fee for lobbyists who fail to file their quarterly expense reports in a timely manner.

Illinois – New Rauner Attack Ad Relies on Made-Up Headlines

Chicago Tribune – Rick Pearson | Published: 7/24/2014

Bruce Rauner’s latest attack ad against Illinois Gov. Pat Quinn relies, in part, on independent news stories but features headlines that Rauner’s campaign made up and doctored to make them sound more critical. The ad overlays what the Rauner campaign calls “headlines” over television screens. Some of the headlines are correct. But in two cases, the ad makes up headlines that did not appear with the source cited, and in at least three other cases, headlines were shortened to buttress the campaign’s attack on Quinn.

Massachusetts – Super PAC Disclosure Bill Clears Massachusetts Senate, Protects Higher Union Limit

MassLive.com – Colleen Quinn (State House News Service) | Published: 7/23/2014

The Massachusetts Senate approved legislation designed to tighten reporting requirements for independent political expenditures, including those made by super PACs. Under Senate Bill 2264, corporations, labor unions, and political committees would be required to file a campaign finance report within seven days of making an independent expenditure, or within 24 hours if the expenditure is made within 10 days of an election. The Senate bill, like a version of the measure approved by the House, also doubles the amount an individual could donate to a candidate in a calendar year from $500 to $1,000. Lawmakers will now try to agree on a compromise bill.

New Hampshire – Can N.H.’s New Campaign Finance Rules Hold up in Court?

New Hampshire Public Radio – Brian Wallstin | Published: 7/21/2014

A bill awaiting New Hampshire Gov. Maggie Hassan’s signature requires 501(c)4s and other politically active nonprofits to register with the secretary of state’s office and report its receipts and expenditures. As reforms go, Senate Bill 120 is relatively modest: it only applies to nonprofits that spend more than $5,000 a year, and it does not ask them to disclose the identity of individual donors. But the new rules, which could affect the role tax-exempt groups play in the 2014 elections, are almost certain to trigger a political tug of war that could wind up in court.

New York – Cuomo’s Office Hobbled State Ethics Inquiries

New York Times – Susanne Craig, William Rashbaum, and Thomas Kaplan | Published: 7/23/2014

The commission set up by New York Gov. Andrew Cuomo to root out public corruption was hobbled almost from the outset by demands from Cuomo’s office. An examination by The New York Times found the governor’s office deeply compromised the panel’s work, objecting whenever the commission focused on groups with ties to Cuomo or on issues that might reflect poorly on him. Cuomo abruptly disbanded the commission halfway through what he had indicated would be an 18-month life. Federal prosecutors are now investigating the roles of Cuomo and his aides in the panel’s shutdown and are pursuing its unfinished business.

New York – JCOPE Donor-Disclosure Exemption Rejections Are Overturned

Albany Times Union – Casey Seiler | Published: 7/18/2014

A judicial hearing officer reversed the Joint Commission on Public Ethics (JCOPE) and held that the New York Civil Liberties Union and three other advocacy groups do not have to reveal their financial backers because doing so could put their supporters at risk. The hearing officer, former Judge George Pratt, said the JCOPE majority opinion was “clearly erroneous” and each of the groups had provided sufficient evidence to warrant an exemption from an ethics rule requiring organizations to disclose their funding sources.

Pennsylvania – Former Traffic Court judges Cleared on Main Charge

Philadelphia Inquirer – Jeremy Roebuck | Published: 7/23/2014

Four ousted traffic court judges in Philadelphia have been convicted of lying to authorities but cleared of most charges in a sweeping ticket-fixing case. A fifth judge and a businessperson were acquitted. An indictment last year portrayed the now-abolished court as a pit of patronage and corruption. Nearly the entire bench was charged with fixing tickets, sometimes in exchange for gifts or favors. The traffic judges were not lawyers but earned about $90,000 annually. Defense lawyers argued that giving insiders “consideration” was long a tradition at traffic court, and not deemed illegal.

Texas – Activist Fined $10,000 for Not Registering as Lobbyist

Houston Chronicle – David Saleh Rauf (San Antonio Express-News) | Published: 7/21/2014

The Texas Ethics Commission ordered conservative activist Michael Quinn Sullivan to pay the maximum fine for not registering as a lobbyist. Sullivan, president of Empower Texans, has been the subject of an extended investigation by the commission stemming from complaints that he failed to register as a lobbyist while working to influence the fate of legislation and the election of a House speaker. Sullivan will appeal the ruling to a state District Court, and argue the commission’s lobbyist registration law is unconstitutional and its enforcement infringes on the First Amendment.

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

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

National:

America’s Shifting Statehouse Press

Pew Center on the States – Jodi Enda, Katarina Eva Masta, and Jan Lauren Boyles | Published: 7/10/2014

After more than a decade of scaling back, newspapers still send more reporters to cover state Capitols than any other medium. But the print journalists who remain now work shoulder to shoulder with students and reporters from non-traditional outlets, shows a new survey. The rise of those non-traditional outlets may be the most significant development in statehouse press coverage in the last five years, although no historical data is available to chart their rise. They include publications that tailor to insider audiences, nonprofit news organizations, and ideologically driven news sites.

Federal:

Hobbled IRS Can’t Stem ‘Dark Money’ Flow

The Center for Public Integrity – Julie Patel | Published: 7/15/2014

The scandal over the IRS targeting conservative groups, combined with Congress systematically stripping the agency of resources and clout over decades, has led to an exempt organizations division that has all but quit regulating politically active nonprofits in any consistent, demonstrable way, according to a Center for Public Integrity investigation. The IRS came to a near standstill on deciding whether it should grant “social welfare” nonprofit status to conservative and liberal groups. An exempt organizations division staffer said the IRS knew many of these groups were highly political, but “we stalled so we wouldn’t have to say no.”

From the States and Municipalities:

Alaska – APOC Rejects Complaint That Parents Should Be Registered Lobbyists

Alaska Dispatch – Richard Mauer (Anchorage Daily News) | Published: 7/11/2014

The Alaska Public Offices Commission (APOC) determined there was no merit to a complaint filed by former middle school math teacher and legislative candidate David Nees that said parents who volunteered to spend the last month of the legislative session in Juneau seeking money for schools should have registered as paid lobbyists. APOC ruled that even if his allegations were true, there would be no violation of the law because the parents were unpaid and their lobbying trips unsubsidized by others.

California – San Diego’s Ethics Commission Votes to Reign in Independent Committees

inewssource.org – Joe Yerardi | Published: 7/11/2014

The San Diego Ethics Commission voted to forward a proposal to city council that would have the practical effect of ending independent committees taking campaign videos published on candidates’ web sites, downloading them, and paying television stations to run them as advertisements. Specifically, the rule would expand the definition of ‘contribution” to include the republication and dissemination of many candidates’ campaign-created materials. Independent committees are usually prohibited from making contributions of any kind to candidates for city office. So replicating candidates’ videos would constitute an illegal non-monetary contribution to a campaign.

Connecticut – Banned Donors Skirt Law Designed To Prevent Pay-To-Play

Hartford Courant – Dave Altimari and Matthew Kauffman | Published: 7/13/2014

Corporations are donating to the federal fundraising accounts of Connecticut’s political parties to navigate around laws banning employees of some companies from giving to candidates for state office. The State Elections Enforcement Commission earlier this year warned federal laws do not “create a loophole” allowing prohibited donors to support state campaigns. The Legislature in 2005 enacted limits on political contributions by state contractors after a kickback scandal that ultimately led to federal prison terms for former Gov. John Rowland and others.

Georgia – Georgia Ethics Chief Claims Lawyer for Gov. Deal Made Threat over Ethics Complaints

Greenfield Daily Reporter – Christina Cassidy (Associated Press) | Published: 7/14/2014

Holly LaBerge, executive secretary of Georgia’s ethics commission, said top aides to Gov. Nathan Deal once threatened to thwart efforts to expand the agency’s authority unless she made campaign finance complaints against the governor “go away.” The governor and his staff have repeatedly denied any interference with the case, which was settled for $3,350 in fines. LaBerge’s attorney said she was speaking out under the state’s whistleblower law and wanted to make sure she would not be retaliated against. In a television interview, LaBerge said she was tired of being accused of carrying out favors on Deal’s behalf.

Indiana – Slippery Government Ethics Rules Raise Calls for Reforms

Indianapolis Star – Tony Cook, Ryan Sabalow, and Eric Weddle | Published: 7/10/2014

Like many states, Indiana has laws intended to prevent long-recognized ethical problems. State officials are restricted from using government resources for political purposes, must disclose certain financial interests, and are supposed to wait at least a year before taking a job with a company they regulate or whose contracts they administer. But in Indiana, there are lots of exceptions to those rules, which were on display in recent cases involving former Superintendent of Schools Tony Bennet, top transportation official Tony Wodruff, and state Rep. Eric Turner.

Kentucky – Meet the Nation’s Most Honest Politician

CNN – Wade Payson-Denney | Published: 7/16/2014

Gil Fulbright is a fake political candidate, appearing in a brutally honest viral video. Actor Frank Ridley plays the character of a money-hungry politician, who lets the public know in his ad that the issues do not matter, as long as he can get re-elected. The faux campaign is raising real money, even though Fulbright’s name will not appear on any ballot. Represent.Us is sending this character to campaign events in Kentucky to bring a message to the public – limit the influence of money in politics.

Maryland – Excuses Abound for Md. Campaign Report Failings

CapitalGazette.cm; Associated Press –   | Published: 7/14/2014

Jared DeMarinis, the director of candidacy and campaign finance for the Maryland Board of Elections, is the person that candidates call when they receive notification the state is assessing them for failing to file timely campaign finance reports. Because the reports are filed electronically, about the only thing DeMarinis has not heard is that the dog ate the report. By far, the most popular excuse is that the campaigns did not understand the software they are required to use.

Pennsylvania – Convicted of Crimes, They Now Have Plaques under Their Portraits

Philadelphia Inquirer – Angela Couloumbis | Published: 7/15/2014

In the Pennsylvania Capitol, roughly two dozen portraits of legislative leaders hang in a place of honor near the rotunda. As of this week, some of them come with a footnote. Plaques were placed beneath the portraits of three former House speakers and a former Senate president pro tempore listing when the lawmakers left office –and when they were sentenced to prison.

Pennsylvania – Ethics Board to Consider Stricter Campaign Finance Regulations

Philadelphia Inquirer – Claudia Vargas | Published: 7/16/2014

Looking ahead to the 2015 mayoral campaign, the Philadelphia Board of Ethics met to work out a series of proposed changes to the city’s campaign finance regulations. Given the rise in independent campaign contributions and coordinated expenditures nationwide, the board’s director of enforcement, Michael Cooke, said the panel should add specific language to the existing regulations to make clear what counts as a contribution and for what purposes. A public hearing on the proposed amendments will be held on September 7.

South Carolina – South Carolina’s State Ethics Commission Restricts Media Policy

Charleston Post & Gazette – Jeremy Borden | Published: 7/16/2014

South Carolina Ethics Commission Chairperson James Burns said until the agency has an official policy for dealing with the media, all comments made to news media should come from Director Herb Hayden. Deputy Director Cathy Hazelwood has acted as the primary spokesperson for the commission, and has often been forthright on issues before the agency. Media attorney Jay Bender said the move to change the policy without a motion, discussion, or vote was against the state’s open records laws. “…If we had more people in government like Cathy Hazelwood, we’d have a better government,” said Bender.

Tennessee – Carr Gave Loan to Company of Political Supporter

The Daily Journal – Chas Sisk (The Tennessean) | Published: 7/15/2014

Tennessee Rep. Joe Carr loaned Life Watch Pharmacy $200,000 last year from his campaign fund. The company is led by conservative fundraiser Andrew Miller, who gave Carr $2,600 for his primary and general election campaigns. Miller also has been the largest donor to the Real Conservatives National Committee, giving $22,500 to the super PAC. Carr has been waging a tea party battle to defeat U.S. Sen. Lamar Alexander.

Utah – Former Utah Attorneys General John Swallow, Mark Shurtleff Arrested

Deseret News – Pat Reavy and Dennis Romboy | Published: 7/15/2014

Former Utah Attorneys General John Swallow and Mark Shurtleff were arrested and now face multiple felony counts, including accepting bribes and destroying evidence. The two are accused of accepting hundreds of thousands of dollars in gifts and campaign contributions from individuals facing legal action in return for favorable treatment from the attorney general’s office.

Wisconsin – After Subpoenas in Walker Criminal Probe, WI GOP Sought to Quietly Change Law

Center for Media and Democracy – Brendan Fischer | Published: 7/15/2014

New documents indicate that weeks after the first subpoenas were issued in Wisconsin’s “John Doe” criminal campaign finance probe in October 2013, state Senate Republicans began working to change the law to legalize the activities under investigation. Republicans surprised many when they tried to rush Senate Bill 654 through the Legislature to explicitly carve-out an exception to the state’s campaign finance statutes for issue ads, the election messages that stop short of telling viewers to vote for or against a candidate.

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

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

National:

Eschewing Lobbyists, States Advocate for Themselves

USA Today – Elaine Povich (Pew Center on the States) | Published: 7/10/2014

The 2011 ban on earmarks – the inclusion of money for specific local projects in broader bills – has prompted a shift away from states paying Washington, D.C.-based lobbyists to advocate for them. Now, more state lawmakers and other officials are combining forces to advocate for themselves. K Street lobbyists were specialists in getting earmarks because of their personal connections to federal lawmakers. The state coalitions are making broader arguments for funds that benefit more than one individual project.

Federal:

Sen. Robert Menendez Seeks Probe of Alleged Cuban Plot to Smear Him

Washington Post – Carol Leonnig and Manuel Roig-Franzia | Published: 7/7/2014

With a public corruption investigation hanging over him, U.S. Sen. Robert Menendez suggested Cuban spies had planted the seeds of that inquiry as a way to discredit him and mute his strident opposition to the government in Havana. His comments followed media stories that said a 2013 CIA report had cited credible evidence linking Cuban agents to a campaign to smear Menendez. The FBI is investigating whether Menendez received free airplane rides and other perks from a wealthy donor and repaid him with political favors. Even if Menendez’s Cuba theory is correct, it is unlikely to derail the probe.

From the States and Municipalities:

California – Support Wanes in Sacramento for Tough Ethics Reform following Scandal

San Jose Mercury News – Jessica Califati | Published: 7/5/2014

Since voting to suspend Leland Yee and two other state senators indicted in recent months, California lawmakers have held a “day of reflection” and considered more than a dozen new pieces of ethics reform legislation. But while support for bills requiring more disclosure of gifts and contributions remains strong, interest in tougher proposals that would restrict politicians’ fundraising and access to free trips has waned significantly in the last few months. “You can’t be against an ethics bill the day after the scandal, but it’s no longer the day after the scandal,” said Jessica Levinson, a professor who specializes in campaign finance law.

Florida – Miami Lakes’ Muzzled Mayor Misses ‘My People’ as Trial Is Set to Begin

Miami Herald – Jay Weaver | Published: 7/7/2014

Michael Pizzi, the suspended mayor of Miami Lakes, is facing a trial in federal court on corruption charges. He is charged with conspiracy and extortion offenses for allegedly accepting $6,750 in mostly cash bribes during an FBI sting operation. Pizzi, a Brooklyn native, sees himself as the character Carmine Polito in the Oscar-nominated movie American Hustle – an over-the-top tale of the FBI’s undercover takedown of a fictional blue-collar New Jersey mayor who lived for his constituents.

Florida – Sternad, Saying He Was Duped, Gets 7 Months

Miami Herald – Jay Weaver | Published: 7/10/2014

A judge sentenced a failed South Florida congressional candidate to seven months in prison for campaign finance violations in a case linked to former U.S. Rep. David Rivera. Justin Sternad pleaded guilty last year to campaign finance violations, including accepting illegal contributions and filing false reports. The case involves allegations that Rivera, a Republican, secretly financed Sternad’s campaign to weaken Democratic rival Joe Garcia. Rivera has repeatedly denied any wrongdoing, although close Rivera associate Ana Alliegro is also charged in the case. Rivera is again running for the House seat against Garcia after losing to him in 2012.

Hawaii – Ethics Commission Investigates Golf Perks

Hawaii News Now – Rick Daysog | Published: 7/9/2014

The Hawaii Ethics Commission is winding down its year-old investigation targeting number of employees at the University of Hawaii (UH) and the Department of Transportation (DOT) for receiving thousands of dollars in free golf outings provided by government contractors. Recent filings with the commission by DOT and UH employees indicates just how widespread the practice is. “For a lot of these firms, it’s simply the cost of doing business and this has got to stop because it makes people trust their government less,” said UH political science professor Colin Moore.

Iowa – Koch Brothers Group Targets Iowa Politics

USA Today – Jennifer Jacobs (Des Moines Register) | Published: 7/6/2014

Americans for Prosperity, the conservative political advocacy organization backed by Charles and David Koch, is building an operation in Iowa –– the site of the first presidential primary – that is intended to sway voting in the state for years to come. Using methodical canvassing, Americans for Prosperity-Iowa seeks to identify voters who are sympathetic to its message. Its database is to include an individual’s political orientation, likelihood to vote, and serve as a roster of probable swing voters.

Louisiana – C. Ray Nagin, Former New Orleans Mayor, Sentenced to 10 Years in Prison

Los Angeles Times – David Zucchino | Published: 7/9/2014

Former New Orleans Mayor Ray Nagin was sentenced to 10 years in federal prison for his participation in a $500,000 bribery scheme that operated during most of his time in office. Many of the kickbacks took place after Hurricane Katrina, when contractors crowded into the city for rebuilding work. The sentence was less than the recommended 15 years, but U.S. District Court Judge Ginger Berrigan said the evidence failed to show Nagin had organized or had been a leader of a conspiracy. Prosecutors objected to the sentence, a move that could set up an appeal.

Maine – Cutler Supporters’ Lawsuit Challenges Constitutionality of Maine Donation Limits

The Sun Journal – Christopher Cousins (Bangor Daily News) | Published: 7/8/2014

Four supporters of independent gubernatorial candidate Eliot Cutler filed a lawsuit against Maine’s ethics commission for not being allowed to contribute as much to Cutler as they could to a party candidate. State law allows party candidates to accept $1,500 donations from individuals for both the June primary and the general election, even if those candidates do not face primary challengers. As an independent, Cutler can collect no more than $1,500 per donor. The lawsuit says that law should be struck down as unconstitutional.

Massachusetts – Robert DeLeo in Glare at Probation Hiring Trial

Boston Globe – Milton Valencia and Michael Levenson | Published: 7/10/2014

Massachusetts House Speaker Robert DeLeo strongly denied assertions by prosecutors at the federal trial of the state’s former probation department commissioner that DeLeo traded jobs for votes or deliberately spared the agency from budget cuts. Prosecutors said in a court filing that such an arrangement had existed between DeLeo and former probation commissioner John O’Brien, who is being tried along with two deputies for allegedly rigging the agency’s hiring process to favor applicants referred by powerful lawmakers, in exchange for favorable legislative action on the budget or other matters.

Missouri – Ex-Missouri House Speaker’s Campaign Fund Still Yielding Benefits Two Years Later

St. Louis Post-Dispatch – Kevin McDermott | Published: 7/6/2014

It is not unusual for former Missouri lawmakers to jump immediately into lobbying their former colleagues with no waiting period. What is unusual is for ex-legislators to keep their campaign funds open and use it in ways that appear to promote their lobbying activities, such as with former House Speaker Steve Tilley. A St. Louis Post-Dispatch review found no other current lawmaker-turned-lobbyist operating under circumstances like the ones surrounding Tilley. That makes some reformers wonder if he is setting a dangerous new precedent that others might follow.

Ohio – Cleveland to Host 2016 GOP Convention

Politico – Katie Glueck and Maggie Haberman | Published: 7/8/2014

In choosing Cleveland as the site of the 2016 Republican National Convention, party organizers opted for a Democratic enclave in the pivotal battleground state of Ohio over the wealthier and more conservative Dallas area. The announcement is a coup for Cleveland as it seeks to update its image from an economically struggling Rust Belt city to a thriving metropolis with a revitalized downtown. The decision to go with Ohio was anticipated by many Republican operatives and donors. “We’re going where the swing voters are,” said GOP strategist Mike Murphy.

Pennsylvania – Interest Groups’ Lobbying Tally Tops $500M in Pennsylvania

Pittsburgh Tribune-Review – Melissa Daniels | Published: 7/4/2014

In 2013, lobbyists spent $518 million on costs related to influencing Pennsylvania lawmakers. It is the first time the spending exceeded the $500 million mark. Gabrielle Sedor, president of the Pennsylvania Association for Government Relations, said the increase in spending is likely is because of rising costs overall, such as salaries and travel costs. She said lobbyists try to provide expertise and research about industry trends, and to keep tabs on statehouse activity. “To be a lobbyist and have a good relationship, you have to be honest and ethical and be a source of information, a reliable resource above anything else,” said Sedor.

Rhode Island – R.I. Lobbyist Rickman Discloses He Loaned $10,000 in 2009 to Ex-House Leader Fox

Providence Journal – Katherine Gregg | Published: 7/8/2014

A lobbyist who failed to disclose he loaned money to former Rhode Island House Speaker Gordon Fox has now said the loan was for $10,000. Ray Rickman and Fox had both neglected to report the loan from August 2009 in required filings. State Ethics Commission attorney Jason Gramitt said nothing in the law bans a lobbyist from giving a public official a loan, but the loan would create a ‘business relationship” which in all cases, except those involving legislators, would create a clear conflict-of-interest if that official took any action that financially benefited that business associate.

South Carolina – SC Supreme Court: Harrell probe can continue

The State – Jamie Self | Published: 7/9/2014

The South Carolina Supreme Court ruled the state’s top prosecutor has the authority to investigate House Speaker Bobby Harrell over allegations the lawmaker abused his power for personal benefit. The justices said Attorney General Alan Wilson is fully empowered to probe wrongdoing wherever it may occur, and his powers are not blunted because the investigation involves a lawmaker’s ethical conduct. The ruling overturned a lower court’s decision to halt Wilson’s investigation.

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

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

National:

As Numbers Grow, Single Women Emerge as Political Powerhouse

New York Times – Jackie Calms | Published: 7/2/2014

Recent elections suggest unmarried women have emerges as a voting bloc that is reshaping the electorate to the Democratic Party’s advantage. In order to prevent Republicans from capturing a U.S. Senate majority in November, Democrats and allied groups are making an aggressive push to woo single women. They seized on the ruling by the Supreme Court’s conservative majority – five men – that family-owned corporations do not have to provide birth control in their insurance coverage, to buttress their arguments that Democrats better represent women’s interests.

How Cozy Can Candidates Be With Political Groups?

The Center for Public Integrity – Rachel Baye | Published: 7/1/2014

Laws vary widely when it comes to how close candidates can be with political backers – what is allowed in one state may be illegal in another. In Florida and Michigan, for example, candidates and supposedly independent groups seemingly work hand in hand, while Connecticut and Minnesota recently affirmed such groups must keep their distance. Meanwhile, federal office seekers operate under an entirely different set of rules on coordination that even regulators cannot agree on.

Terre Haute’s Jim Bopp Jr. a Conservative Titan

Raleigh News & Observer – Mark Bennett (Terre Haute Tribune Star) | Published: 6/29/2014

Attorney Jim Bopp has won nine of 13 cases at the U.S. Supreme Court. He initiated the Citizens United case, which overturned restrictions on spending by corporations and labor unions to support or defeat candidates. Bopp has crisscrossed the nation for more than 30 years, working on more than 150 cases in state and federal courts, knocking down laws he believes inhibit the expression of free speech in campaigns. “In the often arcane world of campaign finance law, he’s a veritable rock star,” said Dave Levinthal, who investigates the influence of money in politics for the Center for Public Integrity.

Federal:

Congress Quietly Deletes a Key Disclosure of Free Trips Lawmakers Take

National Journal – Shane Goldmacher | Published: 6/30/2014

U.S. House members are longer required to list on their annual financial disclosure reports some privately sponsored trips they take. The change was not publicly announced but was described in an instruction book available to members of Congress on how to fill out the forms. Legislators will still have to provide details about their travel on the House clerk’s website, which is less commonly monitored by reporters, watchdog groups, and others than the financial disclosure reports.

LobbyIt: Aiming to be everyman’s lobbyist

Washingtoon Post – Catherine Ho | Published: 6/30/2014

Four years ago, Paul Kanitra opened LobbyIt, a firm in Washington whose business model was nicknamed by some as “McLobbying.” The firm represents mostly small businesses and little-know associations. LobbyIt does not use retainers – which on K Street is typically $15,000 per month. Instead, it uses set pricing levels of $995, $1,995, $2,995, or $4,999 a month. Kanitra describes the firm’s target audience not as the in-house government affairs manager at a Fortune 500 company, but as “the executive director of a small association in Idaho who hasn’t been in D.C. since their eighth-grade class trip.”

From the States and Municipalities:

California – Complaints of Nepotism Dog California Senate

Sacramento Bee – Laurel Rosenhall | Published: 6/29/2014

Concerns about personnel practices and allegations of nepotism are swirling in Sacramento as an investigation proceeds into claims that friends and family of key administrators get special access to taxpayer-funded jobs. Hiring family members is not forbidden in the California General Assembly, and the Legislature is not subject to the same rules that govern hiring in other parts of state government.

Connecticut – Diageo, Pfizer Pay to Settle 2012 DNC Ethics Violation

Connecticut Mirror – Mark Pazniokas | Published: 6/30/2014

Diageo North America and Pfizer agreed to each pay a $5,000 penalty to the Connecticut Office of State Ethics for failing to report spending on receptions each company held during the 2012 Democratic National Convention. Multiple Connecticut state employees, public officials, and/or members of a public official’s family or staff attended each event. Neither Diageo nor Pfizer, both registered as principals in Connecticut, reported the expenses on their lobbyist financial reports.

Kentucky – Legislative Caucuses Rely on PACs, Reports Show

Louisville Courier-Journal – Tom Loftus | Published: 6/30/2014

Each of the General Assembly’s four political caucuses reported their contributions and expenses over the past 18 months to the Kentucky Registry of Election Finance recently. A review of those reports show how heavily dependent the caucuses are on the special interests that lobby lawmakers. Of the nearly $1,036,000 raised by the caucuses over the period, about $394,000 – roughly 38 percent – was contributed by PACs affiliated with corporations and trade associations.

Missouri – Freebies Flow at Missouri Capitol; Pols Accept More than $600K from Lobbyists

St. Louis Post-Dispatch – Walter Moskop | Published: 7/2/2014

Lobbyists in Missouri spent $680,000 on gifts for public officials during the 2014 legislative session, with nearly all of it going to state lawmakers. It is not clear which lawmakers were the recipients of the vast majority of lobbyist spending. More than $500,000 in gifts went to legislative committees or the entire General Assembly, mostly in the form of receptions and meals. By listing a committee or legislative body as the recipient of the gift, lobbyists do not have to provide names of specific lawmakers.

New York – G.O.P. Power Broker in Albany Is Charged With Lying to F.B.I.

New York Times – Thomas Kaplan and William Rashbaum | Published: 7/1/2014

New York Sen. Thomas Libous is facing charges he lied to the FBI about using his elected position to arrange a law firm job and an inflated salary for his son. An indictment alleges Libous claimed he did not know how his son, Matthew, got the job. It also says Sen. Libous told the FBI he was unaware a lobbying firm was paying part of his son’s salary. It has been previously alleged that Thomas Libous arranged his son’s job and salary in exchange for steering business to the law firm.

Ohio – Ben Suarez Acquitted On All Charges except One – Witness-Tampering/Obstruction of Justice for Letter to SCI Controller

Cleveland Plain Dealer – James McCarty | Published: 6/30/2014

Businessperson Benjamin Suarez was found not guilty of illegally funneling $200,000 to the campaigns of U.S. Rep. Jim Renacci and Ohio Treasurer Josh Mandel. The jury found him guilty of one felony count for tampering with a witness. Prosecutors said Suarez’s family members, employees, and their spouses contributed money to the re-election campaign of Renacci and Mandel’s failed U.S. Senate bid. The donors were then reimbursed with company money. The contributions coincided with acts Mandel and Renacci took on behalf of Suarez’s company, which was facing a lawsuit in California. Defense lawyers maintained Suarez did not willfully break the law.

Rhode Island – Fox Had Loan from Registered Lobbyist for Years

WPRI – Michelle Smith (Associated Press) | Published: 6/27/2014

Documents show former Rhode Island House Speaker Gordon Fox had a personal loan from a registered lobbyist for several years. State Ethics Commission filings show the loan of an undisclosed amount over $1,000 was from lobbyist Ray Rickman. Jason Gramitt, an attorney for the Ethics Commission, said state law does not prohibit a lawmaker from taking a loan from a lobbyist, but it does create a business association. Fox’s activities have been under scrutiny since March, when the FBI, IRS, and other authorities raided his statehouse office and home. He resigned his leadership position the next day.

Vermont – Court: Super PAC not independent enough

Politico – Byron Tau | Published: 7/2/2014

A three-judge panel of the U.S. Court of Appeals for the Second Circuit ruled a state-level super PAC in Vermont was not “functionally distinct” enough from a sister committee that gives money to candidates and political parties. As a result, the judges found the supposedly separate group might not have been acting independently and can be subject to Vermont’s contribution limits. Campaign finance reformers say the court has taken an important step in actually examining claims about whether an organization is independent, rather than accepting the group’s word on the matter.

Wisconsin – No Conclusion in Inquiry into Scott Walker’s Campaign Fundraising

New York Times – Monica Davey | Published: 6/26/2014

A prosecutor cautioned he has not made a final determination about whether Wisconsin Gov. Scott Walker and his campaign illegally coordinated fundraising among conservative groups during recall elections in 2011 and 2012. An attorney representing special prosecutor Francis Schmitz warned the media and public against jumping to conclusions of guilt based on documents within a once-secret John Doe probe that emerged in a federal lawsuit.

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

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

National:

Wisconsin Governor Scandal Shows States as New Front in Fight for Dark Money Disclosure

Sunlight Foundation – Stan Oklobdzija | Published: 6/25/2014

As prospects for any regulations at the federal level seem murky at best, it appears the fight against clandestine political donors may be leaving Washington, D.C. and entering statehouses around the country. The Sunlight Foundation reported that at least 18 bills introduced during the most recent legislative sessions in various states would impose new disclosure rules or amend existing regulations regarding independent expenditures.

Federal:

Thousands of Missing Emails at IRS: What’s it all about?

Los Angeles Times – Joseph Tanfani | Published: 6/24/2014

IRS Commissioner John Koskinen disclosed that emails sent by Lois Lerner, the former director of the agency’s division that oversaw tax-exempt groups, were lost when her computer hard drive crashed in 2011. Koskinen told Congress that eight other hard drives from potential recipients had crashed as well. Republicans have seized on the missing emails, alleging in hearings that their disappearance is evidence of a cover-up by the IRS over a scheme to target conservative nonprofits seeking tax exempt status.

Venture Capital Firm Settles S.E.C. Charges over ‘Pay-to-Play’

New York Times – William Alden | Published: 6/20/2014

TL Ventures agreed to pay almost $300,000 to settle charges it violated the Securities and Exchange Commission’s “pay-to-play” rules. The SEC prohibits investment firms from providing paid services to a government client for two years after a contribution by the firm or an employee to candidates or officials who could influence the management of public assets. The agency said TL Ventures continued to receive advisory fees from the city and state pension funds immediately following campaign donations made by an associate in 2011 to the Pennsylvania governor and a candidate for mayor of Philadelphia.

From the States and Municipalities:

Florida – Unknown Candidate for Governor with Questionable Donations Asks State for Public Campaign Money

Naples Daily News – Matt Dixon | Published: 6/20/2014

Obscure Florida gubernatorial candidate Yinka Adeshina has received 12 campaign contributions worth $3,000 from an address listed as 400 West Park in Tallahassee. But that address would fall in the middle of Tallahassee’s Old City Cemetery. Another six contributions worth $1,500 came from donors who share an address with a Best Buy. Adeshina lists a total of $182,080 in donations, which would make her eligible to receive nearly $100,000 in public funds for her campaign.

Georgia – Changes Ahead for Ga. Ethics Commission

Macon Telegraph – Christina Cassidy (Associated Press) | Published: 6/21/2014

The Georgia ethics commission has been mired in staffing issues, lawsuits, and allegations of outside influence. Now that the commission has opted to avoid what could have been a lengthy court battle and settle with three former employees, a key question is whether the agency will finally begin to make progress on more than 100 cases that have remained opened for months and sometimes years. The commission hopes to jumpstart the process of resolving cases by hiring up to two staff attorneys in the next month or two.

Hawaii – An Inside Look at the Hawaii Super PAC That Helped Defeat Cayetano

Honolulu Civil Beat – Nick Grube | Published: 6/19/2014

PRP, an advocacy group for the Hawaii Carpenters Union and contractors, spent more than $3 million in 2012 to dismantle Ben Cayetano’s Honolulu mayoral campaign and keep the city’s $5.26 billion rail project on track. Emails obtained as part of Cayetano’s defamation lawsuit against the group provide an unprecedented glimpse of the behind-the-scenes operations of one of Hawaii’s most powerful independent expenditure committees. Such groups are allowed to receive and spend unlimited amounts of money on political campaigns.

Illinois – Event Honoring Quinn Raises ‘Pay to Play’ Issues

Washington Times – Carla Johnson (Associated Press) | Published: 6/20/2014

The Roosevelt Group, a lobbying firm with close ties to a key subcontractor hired to promote the nation’s health care law in Illinois, hosted a fundraiser for the Democratic Governors Association (DGA) “honoring Pat Quinn,” according to an invitation that lists suggested sponsorship levels of between $2,500 and $20,000. The DGA formed a PAC last fall to support Quinn’s re-election as governor. Critics said the event raises questions about “pay-to-play” in the state’s highly competitive governor’s race.

Indiana – IEDC Contractor Steers Indiana Investment Funds to Firms Run by Its Chairman and His Son

Indianapolis Star – Alex Campbell | Published: 6/19/2014

In 2011, Indiana hired the private nonprofit Elevate Ventures to choose startup companies to receive taxpayer dollars. An Indianapolis Star investigation has uncovered possible conflicts-of-interest in the arrangement, which has triggered a federal probe. The newspaper discovered a company run by Elevate founder Howard Bates received $500,000 in state money from an Elevate-run fund. Elevate was authorized to distribute the money to the companies connected to Bates without state approval, despite the fact it was public money.

Massachusetts – House Supports Super PAC Disclosure Bill, Boosts Donation Limits

MassLive.com – Colleen Quinn (State House News Service) | Published: 6/25/2014

The Massachusetts House passed legislation that would require corporations, labor unions, and other entities to disclose expenditures in statewide, county, or local races, as well as the sources of their funding, within seven days. The top five donors to an independent expenditure group would also have to be listed in the organization’s television or newspaper advertisement. House Bill 4226 raises the individual limits on annual campaign contributions for any one candidate from $500 to $1,000.

Mississippi – How Cochran Bounced Back from Disaster

Politico – Alexander Burns | Published: 6/25/2014

Following Mississippi’s June 3 Republican primary, U.S. Sen. Thad Cochran’s staff members were crestfallen at the results of an election that deprived the incumbent of an electoral majority. With Cochran forced into a run-off against an aggressive and energetic challenger, a dark mood shadowed his backers in Washington and Mississippi. Yet almost immediately, the Cochran coalition began bouncing back. One aide paraphrased Cochran adviser Stuart Stevens’ primary-night message: “We’re going to figure this out and it’s going to be something you remember for the rest of your life.”

Nebraska – Lobbying Report Shows Millions Spent to Influence State Senators

Lincoln Journal Star – JoAnne Young | Published: 6/20/2014

A report by Nebraska Common Cause said special interests spend nearly $14 million a year to influence state lawmakers. But the watchdog maintains it is difficult to measure the full impact of lobbying money on the Legislature. Senators must report only gifts valued over $100. The companies and organizations that hire lobbyists only report total expenditures; food and beverages are exempt. And golf outings, luncheons, holiday gifts, birthday gifts, wedding presents, and tickets to events are difficult to track to specific senators, said the report.

South Carolina – SC Ethics Reform Bill Dies

The State – Andrew Shain | Published: 6/19/2014

South Carolina’s legislative session ended without the Senate voting on an ethics reform measure that Republicans who took the podium to run out the clock denounced as too watered down. The bill’s key components required officeholders to disclose all of their income sources, though not the amounts, and required third-party groups raising money to defeat or elect candidates to disclose their donors and expenses. An ethics bill can be reintroduced in January when a new session begins.

Virginia – Va. Officials Skeptical of U.S. Interest in Phillip Puckett’s Resignation from State Senate

Washington Post – Laura Vozzella, Matt Zapotosky, and Jenna Portnoy | Published: 6/19/2014

Federal investigators have interviewed officials and sought documents in connection with the resignation of then-state Sen. Philip Puckett, which handed Republicans control of the Virginia Senate at a critical time and was connected to job prospects for him and his daughter. Puckett said there was no quid pro quo but withdrew his name from consideration for a top job with the state tobacco commission. But even some of Puckett’s most prominent critics expressed mixed feelings about a federal inquiry into a matter that many considered unseemly but not criminal.

Wisconsin – Conservative Group Targets State’s Political Committee Donation Limits

Wisconsin State Journal – Matthew DeFour | Published: 6/24/2014

A federal lawsuit has been filed challenging a Wisconsin law that limits the aggregate amount of money candidates can collect from PACs. The Wisconsin Institute for Law and Liberty (WILL) filed the lawsuit on behalf of the political arm of conservative group CRG Network. CRG argues its First Amendment rights to free speech and free association have been denied because of the limits. The institute’s legal team previously won a case challenging the cap on aggregate donations by individuals.

Wisconsin – Scott Walker Case Shows Growing Closeness between Politicians and Wealthy Allies

Washington Post – Matea Gold and Tom Hamburger | Published: 6/23/2014

The investigation of Wisconsin Gov. Scott Walker and his allies over alleged illegal coordination has been challenged as unconstitutional, and it is unclear if it will proceed. Still, the inquiry is being watched closely by campaign strategists and legal experts as a major test of what practices cross the line in the loosely governed and increasingly murky area of big-money politics. The growing influence of super PACs and politically active nonprofits, which can raise unlimited funds, has eroded the once-thick wall between official campaigns and outside interest groups.

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

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

National:

Population Shifts Turning All Politics National

New York Times – Ashley Parker and Jonathan Martin | Published: 6/15/2014

For all the talk about how partisan polarization is overwhelming Washington, there is another overlapping force at play: voters who are not deeply rooted in an area increasingly view politics through a generic national lens. It was newcomers from other parts of the country and even abroad to Virginia and Mississippi, more than any other voters, who most crucially rejected two influential Republican incumbents – House Majority Leader Eric Cantor and U.S. Sen. Thad Cochran – in recent primaries.

Federal:

Justices Say Public Workers Can Testify about Corruption

USA Today – Richard Wolf and Mary Orndorff Troyan | Published: 6/19/2014

The U.S. Supreme Court ruled unanimously that public employees are protected from retaliation when they testify in court about misconduct they observed on the job. Public employees who are called to testify are protected by the First Amendment just as other citizens are, and should not have to between “the obligation to testify truthfully and the desire to avoid retaliation and keep their jobs,” wrote Justice Sonia Sotomayor. The decision clarified previous rulings in which the court has said public employees have free-speech rights when they are acting as citizens, not when they are testifying to what they learned in their jobs or are required to speak about because of their specific duties.

Obama to Sign Order Barring U.S. Contractors from Job Bias Based on Sexual Orientation

Washington Post – Zachary Goldfarb and Juliet Eilperin | Published: 6/17/2014

President Barack Obama plans to sign an executive order barring federal contractors from hiring or firing employees based on their sexual orientation or gender identity. Obama is not expected to sign the order for weeks, as the White House finalizes details, including possible exemptions for religious nonprofit organizations. Administration officials said the president decided to act unilaterally in the absence of momentum for legislation with broader protections.

Soft Money’s Squishy Political Influence

New York Times – Derek Willis | Published: 6/18/2014

A report by Daniel Tokaji and Renata Strause of Ohio State University surveys the state of campaign finance and finds the relationship between candidates and like-minded independent groups is characterized by subtle cooperation, not outright coordination. For campaigns targeted by super PACs and other outside groups, the feeling is often one of helplessness. “It was like a giant poker game and I wasn’t even sitting at the table,” said a Senate campaign manager quoted in the report.

From the States and Municipalities:

Arizona – School Superintendent Huppenthal Acknowledges Anonymous Blog Posts

Arizona Republic – Cathryn Creno | Published: 6/19/2014

Arizona Superintendent of Public Instruction John Huppenthal said he is the author behind several anonymous blog posts that referred to welfare recipients as “lazy pigs” and Planned Parenthood as the cause of abortions among African-Americans. The comments date back to 2011 and were posted on political blogs. Huppenthal said he wrote them under different pseudonyms so he could have a more open dialogue without his position influencing the debate. Some experts say it is an ethical problem when elected officials do not state their opinions publicly.

Georgia – Ga. Settles with 3 Ex-Ethics Commission Employees

Washington Times – Christina Cassidy (Associated Press) | Published: 6/13/2014

The state has settled whistle-blower complaints by three former Georgia ethics commission employees for a total of $1.8 million. The settlements follow a jury verdict that awarded more than $1 million to a fourth employee, former commission Executive Secretary Stacey Kalberman. The state will pay $1 million to the panel’s former deputy, Sherry Streicker, $410,000 to former IT specialist John Hair, and $477,500 to former staff attorney Elisabeth Murray-Obertein.

Illinois – Billionaire Ken Griffin Gives Rauner Record-Breaking $2.5 Million

Chicago Sun-Times – Sandra Guy and Art Golab | Published: 6/13/2014

Billionaire hedge-fund founder Ken Griffin’s $2.5 million donation to the campaign of Republican Bruce Rauner has been termed the largest single donation in an Illinois governor’s race in the post-Watergate era. The limit on individual contributions is usually $5,300 in Illinois. But the law allows those caps to be lifted when contributions or loans from a candidate or candidate’s family surpass $250,000. Rauner gave $500,000 to his own campaign in November.

Massachusetts – Bill Would Increase PAC Disclosure

Boston Globe – Frank Phillips | Published: 6/18/2014

The Massachusetts Legislature is expected to pass a bill this summer that would increase disclosure requirements for super PACs. The bill would also double the amount of money individuals can give to state candidates from $500 to $1,000 a year, the first change to those limits in 20 years. The disclosure crackdown, also aimed at nonprofit advocacy groups that fund television ads, would go into effect immediately. The new individual donation limits would not take effect until next year.

Ohio – Lawmaker Might Face Charges over Gifts

Columbus Dispatch – Randy Ludlow | Published: 6/14/2014

Ohio Rep. Dale Mallory could face criminal charges for failing to disclose that lobbyist John Rabenold treated him to two meals and a Cincinnati Bengals game. Franklin County Prosecutor Ron O’Brien said Rabenold agreed to work with the FBI and Legislative Inspector General Tony Bledsoe in ongoing investigations into lawmakers who did not report gifts or accepted illegal gifts. The Joint Legislative Ethics Committee is expected to review the case and decide whether to make a referral to O’Brien for potential charges.

Ohio – U.S. Supreme Court Will Allow Constitutional Challenge of Ohio Law That Bars Campaign Lies

Cleveland Plain Dealer – Sabrina Eaton | Published: 6/16/2014

The U.S. Supreme Court allowed a challenge to an Ohio law banning lies in political campaigns to move forward. The court ruled two advocacy groups could challenge the state law that makes it a crime to make knowingly or recklessly false statements about political candidates that are intended to help elect or defeat them. Lower courts had dismissed the case, saying the organizations seeking to challenge it had not faced imminent harm sufficient to give them standing to sue. Justice Clarence Thomas, writing for the court, said the groups “have alleged a credible threat of enforcement” of the law and so were not barred from pursuing their challenge to it.

Pennsylvania – Improvements Seen in Phila. Lobbying Web Site

Philadelphia Inquirer – Alisha Green (Sunlight Foundation) | Published: 6/12/2014

The story of Philadelphia’s lobbying website highlights some of the problems that governments face with sharing this crucial data. Providing the information with enough detail and in a format that is easy to analyze and reuse is something few local jurisdictions have been able to accomplish so far. Philadelphia knew what it needed to do to improve lobbying transparency, but finding a way to implement those changes was the problem, according to an analysis by the Sunlight Foundation.

South Carolina – An Ethical Mess in South Carolina

The Center for Public Integrity – Corey Hutchins | Published: 6/17/2014

An ethics scandal involving the House speaker and difficulty in passing reform legislation are raising concerns about South Carolina’s legislatively dominated government structure, the efficacy of self-policing lawmakers, and the integrity of the state’s institutions. South Carolina earned an ‘F’ from the State Integrity Investigation, which graded states on their transparency, accountability, and risk for corruption. But despite calls for substantive reform from media, public interest groups, and the governor, the status quo remains.

Washington – Election Fallout: Judge says AG’s lawsuit against Grocery Manufacturers can move ahead

The Olympian – Brad Shannon | Published: 6/13/2014

A Thurston County judge rejected efforts by the Grocery Manufacturers Association to squelch a lawsuit in which Washington Attorney General Bob Ferguson accuses the trade association of laundering millions of dollars in last fall’s campaign. Ferguson has accused group of setting up a special fund to disguise the source of money spent to defeat Washington’s Initiative 522. But the judge scrap the state’s requirement that political committees collect at least $10 from 10 different registered voters in state before spending in a Washington campaign.

Washington – Legislative Ethics Board Weighs Limit on Free Meals from Lobbyists

The Olympian – Brad Shannon | Published: 6/17/2014

How often is “infrequent” when it comes to state lawmakers accepting free meals from lobbyists? Washington’s Legislative Ethics Board spent nearly two hours recently taking testimony on the issue and then grappling with the answer. So far, the board has considered several proposals, from as few as three meals annually to as many as 52 per year. It is currently taking comment from the public, lobbyists, and lawmakers before settling on a limit.

Wisconsin – Prosecutors Accuse Scott Walker of Running ‘Criminal Scheme’

Wisconsin State Journal – Mary Spicuzza | Published: 6/19/2014

Newly released documents show prosecutors allege Wisconsin Gov. Scott Walker was at the center of a nationwide “criminal scheme” to illegally coordinate with outside conservative groups. Prosecutors say Walker, his chief of staff, and others who worked for him were discussing illegal coordination with a number of national organizations and prominent figures, including Republican strategist Karl Rove, to fend off recalls targeting the governor and GOP state senators in 2011 and 2012.
State and Federal Communications produces a weekly summary of national news, offering more than 80 articles per week focused on ethics, lobbying, and campaign finance.

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

National:

What Corrupt States Spend Their Money On

Government Technology – Liz Farmer and Kevin Tidmarch (Governing Magazine) | Published: 6/6/2014

According to research published in Public Administration Review, states with higher levels of public corruption spend more money on highways and construction. The study found those projects and police programs provide the most opportunities for lawmakers to enrich themselves, and are positively correlated with state levels of corruption. Meanwhile, highly corrupt states also spend relatively less on health, education, and welfare, categories that were less susceptible to graft and bribery, found the report.

Federal:

Four Years Later, FEC May Finally Update Its Books with Citizens United Ruling

National Journal – Shane Goldmacher | Published: 6/8/2014

Sources said a bipartisan coalition of FEC commissioners is finally moving to update its regulations in the wake of the Supreme Court’s Citizens United ruling after years of stalemate. The proposed rules under consideration by commissioners are narrow in scope, mostly seeking to strip unconstitutional provisions from the books; the revisions would not include the stricter disclosure requirements that some Democrats have sought, said people involved in the matter. But the very fact the FEC is undertaking the effort at all is a significant development for an agency that has become synonymous with Washington gridlock and dysfunction.

From the States and Municipalities:

California – Calif. Senate Adopts New Ethics Standards, Rejects Others

Los Angeles Times – Patrick McGreevy | Published: 6/9/2014

The California Senate passed new rules that will create an ethics ombudsman, update the chamber’s code of conduct, and ban senators from collecting campaign checks during the last four weeks of the legislative session. But the Senate also shot down a bill that sought a broader campaign fundraising ban, and passed a watered-down ethics bill striking out an attempt to limit the value of travel that officials may take at the expense of interest groups who lobby them.

Colorado – Colorado Secretary of State Denies Citizens United’s Press Pass

Denver Post – Joey Bunch | Published: 6/5/2014

A request by conservative political group Citizens United to be treated as a media organization under Colorado election law was denied. The secretary of state’s office ruled an upcoming documentary featuring state politicians “is an electioneering communication” and does not fall under any of the exemptions to state laws requiring political groups to disclose financial donors when running ads that mention candidates within 60 days of an election.

Connecticut – Judge Rules for State’s Campaign Finance Law

Hartford Courant – Edmund Mahony | Published: 6/10/2014

A federal judge dismissed part of a Democratic Governors’ Association (DGA) lawsuit and denied the group’s bid for a preliminary injunction against Connecticut’s campaign finance laws that it said limit the ability of political groups to buy independent ads backing candidates. The DGA maintained that under laws adopted in 2013, the state unfairly treats independent money spent on ads and other political messages by the national group as contributions to particular candidates, and thus subject to donation limits.

Idaho – Ethics Proposal Would Stop Lobbyists from Lying to Lawmakers

Utah Policy – Brian Schott | Published: 6/10/2014

Idaho law prohibits lobbyists from intentionally giving false information to officials. The punishment is up to $100 fine and a one-year suspension of their lobbying license. But the law is basically unenforceable because it is nearly impossible to prove whether a lobbyist provided false information on purpose. State Sen. Daniel Thatcher wants to put more teeth into the statute.

Illinois – State Rep. Derrick Smith Found Guilty in Bribery Trial

Chicago Sun-Times – Kim Jansson | Published: 6/10/2014

A federal jury found Rep. Derrick Smith guilty of taking a $7,000 bribe to support a state grant for a day-care center. He was charged following an FBI undercover investigation that caught him talking about the payoff on tape. Smith was expelled by the Illinois House in 2012 after he was charged with taking the bribe. He won his seat back the same year, but lost the Democratic primary in March.

Maryland – City Chides Developer for Listing Campaign Contributions as Project Cost

Baltimore Sun – Luke Broadwater | Published: 6/11/2014

Baltimore officials approved a deal to sell a pier for the development of a luxury hotel after reprimanding a developer for trying to include campaign contributions to local politicians as part of the project’s costs. Recreation Pier Developers listed donations to city Councilperson James Kraft and state Del. Peter Hammen as part of the more than $3 million it has spent on the project. “The developers believe campaign contributions buys access and helps build a relationship …,” said Maryland Common Cause Director Jennifer Bevan-Dangel.

Maryland – Hershey v. Hershey: Chocolate company sues state senator over campaign signs

Baltimore Sun – Ian Duncan | Published: 6/9/2014

In a federal lawsuit, the Hershey Company asked a judge to stop Maryland Sen. Stephen Hershey, Jr. from using campaign materials that it believes are too similar to its own logo and packaging. The senator’s name, in block capital letters over a brown Maryland flag, looks strikingly similar to the wrapper of a certain confection, the chocolate maker says, an impermissible use of what it calls its “trade dress.”

Nevada – In Nevada, Nobody Wins (Sort-Of)

Politico – Steven Shepard | Published: 6/11/2014

More Democratic primary voters cast ballots for “None of these candidates” than for any actual candidates for governor in Nevada, a testament to a weak field looking to challenge popular Gov. Brian Sandoval and a unique state election law that allows voters the none-of-the-above option. “None” led the way with 30 percent of the vote. Finishing second was former state economic development director Robert Goodman, who won 25 percent of the vote.

North Carolina – N.C. Investigating Donations by Sweepstakes Industry

The Virginian-Pilot – Michael Biesecker (Associated Press) | Published: 6/11/2014

The State Bureau of Investigation is conducting a criminal probe into campaign contributions from the video sweepstakes industry to some of North Carolina’s top elected officials. The Associated Press reported last year that donations from gaming software magnate Chase Burns, who was pushing for legalization of his industry in North Carolina, may have violated state laws prohibiting corporate money from “directly or indirectly” funding political campaigns.

Pennsylvania – A Bad Bet: GOP Governors Assn. crossed state law with donation

Philadelphia Daily News – Chris Brennan | Published: 6/11/2014

The Republican Governors Association transferred nearly $1 million to its Pennsylvania PAC – the largest donor to Gov. Tom Corbett’s re-election bid – from casino magnate Sheldon Adelson, a blunder that appears to breach the state’s gaming act. State law bars casino owners and executives from giving to candidates, political parties, or committees. Adelson chairs the Las Vegas Sands Corp., which owns a casino in Bethlehem.

South Carolina – South Carolina Senate Postpones Vote on Ethics Compromise after House Grudgingly Passes

Columbus Republic – Andrew Coffman Smith (Associated Press) | Published: 6/5/2014

The South Carolina General Assembly was on the cusp of passing its first attempt at ethics reform in 20 years when Sen. Lee Bright filibustered a vote on the bill. The House had passed the legislation but the Senate chose to wait until June 17 to consider the measure. The reform bill raises the annual lobbyist registration fee from $100 to $200, and super PACs would be required to disclose their top five donors and any donor who gives more than $10,000, among other provisions.

Virginia – Cantor Loss Throws Congress into Disarray

Washington Post – Paul Kane | Published: 6/10/2014

In one of the most stunning primary election upsets in congressional history, House Majority Leader Eric Cantor was soundly defeated by a tea party-backed economics professor who had hammered him for being insufficiently conservative. The result delivered a major jolt to the Republican Party as Cantor had widely been considered the top candidate to succeed Speaker John Boehner, and it has the potential to change both the debate in Washington on immigration and, possibly, the midterm elections.

Virginia – GOP Has Claimed Control of Va. Senate, Forced Democrats to Cave over Medicaid Impasse

Washington Post – Laura Vozzella and Michael Laris | Published: 6/9/2014

The resignation of a Democratic senator in Virginia that flipped control of the chamber to Republicans set off charges of an unseemly deal and threatened Gov. Terry McAuliffe’s chances of expanding Medicaid under the president’s health care law. State Sen. Phillip Puckett’s sudden decision to step down from his seat may tip a stalemate in favor of Republicans opposed to expanding Medicaid to 400,000 poor and disabled residents. Democrats accused Republicans of masterminding Puckett’s resignation by promising him a plum job and speeding the appointment of his daughter to a state judgeship.

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

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

National:

Betting on a Brand When Politics Is the Family Business

New York Times – John Harwood | Published: 5/29/2014

Surveys have shown past experiences with a product or memories of family and friends using it shaped consumers’ buying decisions. Democrats’ hopes of holding the U.S. Senate this fall rest significantly on the political equivalent of that “brand capital.” In four states that usually lean Republican, Democrats will be running candidates from families with multigenerational records of political success. If at least two of the four legacy candidates can eke out victories, the Democrats’ chances of holding the Senate will be better than even.

‘Colbert Report’ Taught Viewers More about Super PACs than Cable News

U.S. News & World Report – Tierney Sneed | Published: 6/2/2014

Leading up to the last presidential election, the faux conservative host of ‘The Colbert Report” created a super PAC and a secretive “dark money” group on his show. Viewers who saw those satirical segments were significantly better informed about the role of money in politics than viewers of any other news channels, according to the Annenberg Public Policy Center. Stephen Colbert created Americans for a Better Tomorrow, Tomorrow with the help of former FEC Chairperson Trevor Potter. “The Colbert Report” was particularly effective because of the detail the show went into, and the narrative arc of its examination that lasted many months throughout the election cycle.

Federal:

Exodus Hits Patton Boggs

Politico – Anna Palmer and Byron Tau | Published: 6/4/2014

After Patton Boggs’ recent merger with Squire Sanders was finalized, so many lawyers and lobbyists fled the firm that moving trucks lined up in front of its K Street headquarters. One Patton Boggs insider estimated 200 attorneys, lobbyists, and staff, through layoffs, buyouts, and departures, will have left the firm by the time everything settles down. At its peak in recent years, the firm had about 500 lawyers and lobbyists.

The New Landscape of Lobbying

Washington Post – Catherine Ho | Published: 6/1/2014

The lobbying industry, once dominated by a handful of big, powerful personalities, has given way to a broader and more grassroots business that has more voices – and must influence more decision makers – than ever before. The Washington Post highlighted some of the lobby firms that are shaking things up, either by starting anew, transforming their structure to do business differently, or experimenting with new ways to broker change through social media and other outlets.

From the States and Municipalities:

Alabama – After 17 Years at Helm, Executive Director Announces Retirement from Alabama Ethics Commission

Columbus Republic – Philip Rawls (Associated Press) | Published: 6/4/2014

Alabama Ethics Commission Executive Director James Sumner is retiring on October 1, ending more than 17 years as the agency’s top staff member. Sumner made note of his efforts to strengthen the ethics code, which culminated in lawmakers passing legislation that included reducing the amount a lobbyist could spend on entertaining a public official, giving subpoena power to the Ethics Commission, and guaranteeing an annual appropriation to the commission so it would not be subject to legislative whims.

California – Indicted Yee Gets a Quarter-Million Votes for Secretary of State

Los Angeles Times – Phil Willon | Published: 6/4/2014

Charges of corruption and gun-running conspiracy notwithstanding, almost 10 percent California voters thought suspended state Sen. Leland Yee should become secretary of state. He was arrested in March and indicted several days later as part of a sweeping investigation into organized crime. Yee had dropped out of the race, but not before a deadline to remove his name from the ballot had passed.

Colorado – Colorado Mulls Forcing Citizens United to Disclose Donor Identities

Colorado Independent – Tessa Cheek | Published: 6/4/2014

Political-advocacy group Citizens United is asking for its upcoming film on Colorado politics to be exempt from the state’s campaign finance laws. The group plans to release the film shortly before the upcoming November election, containing images of and messages about Colorado politicians, though it will not expressly advocate a position on races. If the group gains status as a news media organization, it will not be required to disclose its donors or file campaign finance information around the launch and promotion of its film.

District of Columbia – Former D.C. Council Member Michael A. Brown Gets More Than 3 Years in Bribery Case

Washington Post – Ann Marimow and Mike DeBonis | Published: 5/29/2014

Former District of Columbia Councilperson Michael Brown was sentenced to more than three years in prison for taking bribes in an undercover FBI sting, a comparatively stiff sentence from a judge who said “we cannot have city government run this way.” In the sting operation, Brown took $55,000 in cash payments, handed to him in rolls and stacks of $100 bills transmitted in coffee mugs and duffel bags. The undercover FBI agent was posing as a businessperson seeking preferential treatment on government contracts.

District of Columbia – Vultures on K Street? Yes, Birds of a Feather Flock Together

Washington Post – Theresa Vargas | Published: 6/2/2014

Tell people two vultures have made a home at the intersection of K and 11th streets in Washington, D.C. and they will likely ask the same question Charlie Dewitt did. “The bird variety?” he wondered. K Street is renowned for office buildings filled with highly paid, powerful lobbyists who, along with others in the city’s political food chain, are often called scavengers – and worse. “We have vultures and turkeys and other kinds of creatures here,” joked Dewitt, a lobbyist who has worked in Washington for 25 years.

Maine – Maine Nixes Cap That Limits How Much Individuals Can Give to Campaigns

Lewiston Sun Journal – Christopher Cousins (Bangor Daily News) | Published: 6/4/2014

The Maine Commission on Governmental Ethics and Election Practices will not enforce the state’s $25,000 aggregate limit on campaign contributions by individuals, based on a recent U.S. Supreme Court decision. The change means anyone can donate as much as they want across a range of candidates, though caps on how much each campaign can receive from an individual remain in place. “The commission has determined that it will not enforce the … aggregate limit … during 2014 unless and until it receives further guidance from the … Legislature or a court …,” according to the opinion.

New York – Ex-Brooklyn Prosecutor Charles J. Hynes Accused of Misuse of Funds

New York Times – Stephanie Clifford and William Rashbaum | Published: 6/2/2014

A report by New York City’s Department of Investigation accuses former Brooklyn District Attorney Charles Hynes of using money seized from drug dealers and criminal defendants to pay for a political consultant. Barry Kamins, the administrative judge for the city’s criminal courts, was also implicated in the case. The report said Kamins violated the judicial code of ethics by advising Hynes on his campaign, offering legal advice, and discussing matters the district attorney’s office was actively prosecuting.

North Carolina – Patrick Cannon Pleads Guilty to Corruption Charge

Charlotte Observer – Ely Portillo and Elizabeth Leland | Published: 6/3/2014

Former Charlotte Mayor Patrick Cannon pleaded guilty to honest services wire fraud, which carries a sentence of up to 20 years in prison and a $250,000 fine. An FBI sting recorded him accepting more than $48,000 in cash, airline tickets, a hotel room, and the use of a luxury apartment from undercover agents posing as estate developers who wanted to do business in the city. Cannon was arrested on March 26 and resigned the same day, less than six months after taking office.

South Carolina – SC Lawmakers Agree on Ethics Reform but ‘Most Important Part … Not Getting Done’

The State – Jamie Self | Published: 6/4/2014

A conference committee in the South Carolina Legislature agreed to drop a proposal to establish an independent commission to investigate ethics violations. The compromise reform bill, which is expected to be approved before the legislative session adjourns, raises the annual lobbyist registration fee from $100 to $200. Super PACs would be required to disclose their top five donors and any donor who gives more than $10,000, among other provisions.

Utah – Johnson: Swallow had me launder donations to Lee’s campaign

Salt Lake Tribune – Robert Gehrke | Published: 6/4/2014

Indicted businessperson Jeremy Johnson told investigators he helped launder tens of thousands of dollars to U.S. Sen. Mike Lee’s 2010 campaign at the request of former Utah Attorney General John Swallow, according to an affidavit. Johnson said gave about $50,000 to other people who then donated to Lee’s campaign, circumventing election law that sets maximum individual donations to candidates.

West Virginia – Ethics Commission Fires Executive Director

Charleston Daily Mail – Dave Boucher | Published: 6/5/2014

The West Virginia Ethics Commission fired Executive Director Joan Parker after a lengthy executive session. Commission members gave no reason for their decision. “If you, commissioners, choose to end my employment, I will leave with my head held high knowing that throughout my tenure I have dedicated my efforts to maintaining the integrity of the Ethics Commission and have done everything within my power, even when it was unpopular, to promote compliance with the ethics act,” Parker said before the vote.

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

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

Federal:

Harry Reid’s Attacks on Koch Brothers Send GOP Donors into the Shadows

Washington Post – Matea Gold | Published: 5/29/2014

Several prominent pro-Republican advocacy groups say they are benefiting from a burst of cash as some donors, fearful of harsh public attacks such as those aimed at the billionaire Koch brothers by U.S. Senate Majority Leader Harry Reid, turn away from political committees required under federal law to reveal their contributors. Reid has escalated his criticisms of the Kochs and their influence within the GOP in recent months, lodging sharply personal attacks against the brothers, often from the Senate floor. “We’ve heard from donors that they don’t want to get ‘Koched,'” said one Republican operative who works with outside groups.

I.R.S. Delays New Rules on Taxation for Activists

New York Times – Nicholas Confessore | Published: 5/22/2014

The IRS is rewriting new rules intended to clarify how the agency defines political activity and how much nonprofit groups are allowed to spend on it and still keep their tax exempt status. The IRS will delay a public hearing it planned to hold this summer until the controversial regulations are revised. The agency said it made the decision after receiving 150,000 comments about the changes, the biggest public response to any proposed rule in its history. The delay means new rules will not be in place before Election Day.

Patton Boggs Agrees to Merger with Squire Sanders

Washington Post – Catherine Ho and Holly Yeager | Published: 5/23/2014

Patton Boggs, a Washington, D.C. lobbying and legal powerhouse for decades, is merging with a larger firm, Squire Sanders, in a move that saves Patton Boggs from drift or dissolution. The new firm will be named Squire Patton Boggs. The merger is expected to take effect by June 1. The end of Patton Boggs as a standalone firm is a tale of a changing industry, where a firm’s ability to influence a few key powerbrokers is giving way to the need to sway larger groups of lawmakers and the public as a whole.

RNC Files Suit to Raise Unlimited Cash for Elections

San Gabriel Valley News; Associated Press –   | Published: 5/22/2014

The Republican National Committee sued for the right to raise unlimited funds for independent expenditures that advocate for a candidate’s election. The suit seeks to eliminate an annual $32,400 per person limit on contributions to the party, making its independent spending similar that of a super PAC. The committee did not challenge limits on contributions made directly to campaigns.

From the States and Municipalities:

Arkansas – Arkansas Ethics Panel Issues Opinion on Electronic Campaign Contributions

The Times Record; Arkansas News Bureau –   | Published: 5/23/2014

The Arkansas Ethics Commission said a national organization that accepts campaign contributions electronically does not have to require Arkansas donors to submit personal information each time they make a donation if the information is already recorded. The commission issued an advisory opinion at the request of ActBlue, a PAC that raises money for Democratic candidates across the country.

California – Chiu Lobbying Legislation Heads to Full Board of Supervisors Next Month

San Francisco Chronicle – Marisa Logos | Published: 5/27/2014

Proposed changes to San Francisco’s lobbying ordinance seek to close loopholes that critics say have allowed some of the city’s most prolific lobbyists to avoid registering. Current law exempts licensed attorneys from registering as lobbyists, even if they are not actually acting as a lawyer. The legislation also changes the definition of a lobbyist, basing it on the number of times a person contacts city officials instead of how much he or she is paid for lobbying activities.

California – Guiding Voters to Candidates with the Right Wallets

Los Angeles Times – Evan Halper | Published: 5/27/2014

Like so many other Silicon Valley startups, a project from two Stanford University professors, www.crowdpac.com, is rooted in an algorithm. This one is fueled by campaign money. The academics view campaign disclosure reports as a treasure trove of data that can be used to connect neophyte politicos with like-minded candidates. Crowdpac’s motto: “It turns out the best guide to what a politician will do is not what comes out of their mouth, but what goes into their wallet.”

Maine – Maine Ethics Panel Imposes Record Fine on National Organization for Marriage

Portland Press Herald – Steve Mistler | Published: 5/28/2014

The Maine Commission on Governmental Ethics and Election Practices fined the National Organization for Marriage (NOM) more than $50,000 and ordered it to file a report that would reveal the donors behind the group’s 2009 effort to repeal the state’s gay marriage law, a decision that could affect how nonprofit organizations attempt to influence elections. The commission ruled NOM failed to properly register as a ballot question committee and file campaign finance reports in the referendum that struck down same-sex marriage before it was legalized by voters in 2012.

Minnesota – Ritchie Cuts out Immunity Cards for Legislators

Minneapolis Star Tribune – Abby Simons | Published: 5/22/2014

Secretary of State Mark Ritchie will no longer distribute “Get Out of Jail Free” cards to Minnesota lawmakers. The decision brings an end to the wallet-sized cards that say lawmakers “in all cases except treason, felony and breach of the peace, shall be privileged from arrest” while the Legislature is in session. Historically, the cards were issued to keep adverse interests from arresting lawmakers to prevent them from voting, but have raised concerns among some who fear they literally put legislators above the law, including getting them out of drunken driving or other arrests.

Mississippi – For Tea Party, Senate Race in Mississippi Is the Last Chance to Oust an Incumbent

New York Times – Jonathan Weisman | Published: 5/28/2014

Mississippi politics has always had a rough edge under the veneer of Southern gentility, but the race for the U.S. Senate between incumbent Thad Cochran and state Sen. Chris McDaniel has reached another level. The race represents the last chance for tea party activists to topple an incumbent senator, and it appears that little is off limits in the campaign.

New Jersey – A Limit to Pension Investing Oversight as Political Donations from Executives Can Go Unchecked

Bergen Record – Melissa Hayes and John Reitmeyer | Published: 5/27/2014

New Jersey’s “pay-to-play” law makes it clear that executives and their employees working on the state’s pension fund investments cannot donate to candidates and political committees. But those venture capital firms and hedge funds often take the state pension dollars and invest them in other companies whose executives do not have to disclose their campaign contributions. The complex nature of those investments, the inability of the law to cover all their financial relationships, and the lack of any public database like the one for state contractors make tracking political connections difficult.

New York – New York Elections Board: $150,000 campaign donation limit on individuals won’t be enforced

The Tribune – Michael Virtanen (Associated Press) | Published: 5/27/2014

The New York Board of Elections ruled the state’s $150,000 annual limit on aggregate campaign donations by individuals will no longer be enforced. The contributions would be restricted only by how much a politician, party, or group can receive under various limits set in election law. For example, a statewide candidate can accept no more than $41,100 from a single donor. The board agreed the $150,000 limit is unenforceable following recent court rulings.

Pennsylvania – How Philly’s Most Powerful Ed Reform Group Broke the Law

Philadelphia City Paper – Daniel Denvir | Published: 5/23/2014

The city ethics board levied a fine of $1,500 against the Philadelphia School Partnership for failing to register as a lobbying principal and not filing required disclosure reports. The partnership, a local nonprofit raising millions of dollars in a bid to improve public, private, and charter schools, said it was initially unaware that the city’s definition of lobbying was broader than those used by the state and federal governments.

Virginia – Ethics Law Addresses Virginia Officials’ Financial Dealings, But Database Is a Tall Order

Washington Post – Jenna Portnoy | Published: 5/26/2014

Under a new law, the public should be able to scrutinize a wide variety of Virginia officeholders’ financial data and gifts they receive with a quick check online. But unanswered questions about how the electronic clearinghouse will be set up could make it harder, not easier, to see the information. Officials are struggling with the difficult and potentially expensive reality of carrying out the law. As a result, they are considering a simpler, less searchable system that would make it more difficult to scrutinize the records.

Virginia – McAuliffe Vetoes Ethics Bill after Amendments Rejected

Richmond Times Dispatch – Olympia Meoli | Published: 5/23/2014

Virginia Gov. Terry McAuliffe vetoed identical ethics reform bills limiting certain gifts to him after the General Assembly rejected amendments he proposed to place that limit on lawmakers. The bills aimed to ban the governor from soliciting or accepting gifts worth more than $50 from those seeking grants or no-interest loans from a state economic development fund.

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

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

National:

Glass Ceilings in Statehouses in the Northeast

New York Times – Jonathan Martin | Published: 5/18/2014

The Democratic Party has yet to elect a female governor in Pennsylvania, New Jersey, New York, Rhode Island, or Massachusetts. Even this year, with women running for governor in three of those states, it is uncertain that any of them will break the pattern. It is no quirk of history, according to a few dozen politicians, scholars, and strategists who have examined or experienced firsthand the difficulties women have had in seeking to become chief executives in some of the flagship states of blue America.

From the States and Municipalities:

Connecticut – Judge Orders Settlement Try in DGA Campaign Case

Connecticut Mirror – Mark Pazniokas | Published: 5/21/2014

U.S. District Court Judge Janet Hall ordered settlement talks to begin in a case in which the Democratic Governors Association (DGA) claims the State Elections Enforcement Commission and Connecticut campaign laws restrict its First Amendment right to spend money on behalf of Gov. Dannel Malloy in the coming election. Hall sharply questioned lawyers for both sides in open court, probing the DGA’s legal standing to challenge a statute it is yet to be accused of violating, and testing whether the state law comports with recent court rulings minimizing restrictions on campaign contributions.

Delaware – Markell Ties Benefit from Collections Contracts

Delmarva Daily Times – Jonathan Starkey (Wilmington News Journal) | Published: 5/19/2014

Gov. Jack Markell’s administration has paid millions of dollars to law firms tied to supporters and former staff members that were hired to help collect money from out-of-state businesses incorporated in Delaware. Nothing about the relationships and contracts is illegal. But the contracts raise questions about how Markell, who came into the governor’s office critical of backroom deals that benefit insiders, runs the program that collects so much state revenue. James Browning of Common Cause said the state should require better lobbying disclosures for those seeking public business.

Georgia – Ethics Commission Whistleblower Talks About Trial

WXIA – Catherine Beck | Published: 5/21/2014

In an interview, former state ethics commission Executive Secretary Stacey Kalberman recounted the turbulent last three years she has faced. In dealing with an ethics case against Georgia Gov. Nathan Deal, Kalberman lost her job, her professional reputation, and the Atlanta community she had lived in for more than 25 years. But she won from a jury what she needed the most: vindication.

Illinois – Watchdog Wants Stricter Cook County Lobbying Rules

Chicago Tribune – Hal Dardick | Published: 5/19/2014

Cook County Inspector General Patrick Blanchard issued a report that calls for stricter rules after finding “rogue lobbyists” are ignoring requirements to register or report their activities. He said people selling products to the government escape from all lobbying requirements under a loophole in the county ordinance. County Clerk David Orr, who introduced the county’s lobbyist reporting requirements, said he was open to the reforms that Blanchard proposed.

Indiana – State Giving $345K to Eric Turner Company Project

Belleville News Democrat – Tom LoBianco (Associated Press) | Published: 5/20/2014

The Indiana Economic Development Corp. awarded Mainstreet Property Group $345,000 for the construction of a nursing home that is expected to net House Speaker Pro Tem Eric Turner $1.8 million. It was one of many Mainstreet projects that Turner helped save when he defeated legislation that would have banned the construction of new nursing homes. Turner owns 50 percent of a company which owns 76 percent of Mainstreet.

Louisiana – Federal Judge: Ethics gag rule is unconstitutional

New Orleans Advocate – Sara Pagones and Faimon Roberts III | Published: 5/16/2014

A federal judge granted Terry and Laura King’s request to strike down a state law under which the couple was charged with a crime for allegedly making public statements about an ethics complaint they filed against St. Tammany Parish Coroner Peter Galvan. The Kings filed a lawsuit challenging the constitutionality of the law, saying it violates citizens’ rights to freedom of speech. U.S. District Court Judge Martin Feldman agreed that the section of the law used to prosecute the Kings is too broad.

Maine – National Anti-Same-Sex Marriage Group Could Be Fined for Role in 2009 Campaign

Portland Press Herald – Eric Russell | Published: 5/19/2014

A national group that helped defeat a same-sex marriage law in Maine could face more than $50,000 in fines for violating the state’s campaign finance laws. The state ethics commission said its investigators found the National Organization for Marriage (NOM) should be fined for failing to register as a ballot question committee and not filing reports. NOM was the primary donor when it gave nearly $2 million to Stand for Marriage Maine, a PAC, to help defeat the law in a 2009 referendum. State law requires groups to register if they raise or spend more than $5,000 to influence a state ballot question.

Massachusetts – Mayor Walsh Received $1.4M in Gifts for Gala, Transition

Boston Globe – Andrew Ryan | Published: 5/19/2014

Boston Mayor Martin Walsh received $1.4 million in private donations for his inauguration and transition, with most of the contributions coming from corporations, developers, lobbyists, and others who do business with the city. Walsh used no tax dollars for the January inauguration, and he barred money from PACS and organized labor, although unions hosted a private reception for the new mayor. The administration suggested a cap of $25,000 for donors and voluntarily disclosed all contributions and expenditures. Walsh said it did not pose a conflict to accept money from companies with interests before the city.

Minnesota – Federal Court: Minnesota must lift limit on political donations

Minneapolis Star Tribune – Rachel Stassen-Berger | Published: 5/20/2014

Minnesota’s law limiting the amount of money candidates can take from lobbyists, PACs, and big donors is on hold after a ruling by a federal judge. U.S. District Court Judge Donovan Frank suspended the law while a court challenge plays out. The statute in question says candidates can only accept 20 percent of their contributions from certain types of donors and then must abide by lower limits after that.

New Jersey – National Group Gives NJ Contractors a New Way to Influence Elections

Newark Star Ledger – Matt Friedman | Published: 5/18/2014

Contributions to GOPAC, a Washington-based nonprofit political advocacy group, reveal how such organizations allow contractors to get around state and local laws designed to keep them from making big campaign donations in New Jersey. Some of the candidates and committees were restricted from taking major donations directly from the contractors because of New Jersey’s web of “pay-to-play” laws aimed at keeping political money from influencing the awarding of contracts. But the contractors are free to donate to GOPAC, which is allowed to give money to any candidate.

North Carolina – NC Legislature Adopts New Rules on Protests

Raleigh News & Observer – Craig Jarvis | Published: 5/15/2014

North Carolina lawmakers adopted new rules governing protests at the Legislative Building. The move was prompted by legal concerns over the guidelines cited by judges hearing the cases of some of the more than 900 people who were arrested in last year’s “Moral Mondays” demonstrations at the General Assembly. But the process, rushed through on the second day of session in advance of the anticipated first round of protests this year, drew criticism from Democratic legislators.

Oklahoma – Oklahoma Gov. Mary Fallin Signs Bill to Change Local Campaign Finance Reporting Law

The Oklahoman – Rick Green | Published: 5/20/2014

A bill signed into law by Oklahoma Gov. Mary Fallin imposes a new disclosure requirement for groups that make independent expenditures to local campaigns. These groups will be required to identify donors who contribute more than $50. The law also designates the state Ethics Commission as the body to enforce local campaign finance statutes.

Vermont – Donor Rules Same for All VT Candidates

Burlington Free Press – Nancy Remsen | Published: 5/19/2014

Vermont Attorney General William Sorrell issued guidance saying the state would not enforce different contribution limits for candidates who run in both a primary and general election and candidates running for the same office who have only one election. All candidates will now be allowed to accept $2,000 per donor, even if they do not have a primary. This policy applies through December 31, 2014, after which new donations limits take effect for the next election cycle.

Wisconsin – Lobbyists to Be Allowed to Make Campaign Donations during Legislative Session

Wisconsin State Journal – Mary Spicuzza | Published: 5/22/2014

The Wisconsin Government Accountability Board said lobbyists can pass along campaign contributions made by others, such as PACs, at any time of the year. A new campaign finance law raised questions about what the rules for lobbyists were. The board decided that timing limitations for lobbyist donations to candidates apply only to personal contributions, and not those they are delivering on behalf of others.

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

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

National:

GOP Civil War Rages in Senate Primary Battles

The Center for Public Integrity – Dave Levinthal | Published: 5/8/2014

Hard-line conservative groups have together spent nearly three dollars attacking Republican candidates for every one dollar spent criticizing Democrats, according to a Center for Public Integrity analysis. The dichotomy illustrates the family feud between mainstream Republicans and their tea party-affiliated cousins, many of whom have forced GOP incumbents into expensive primary fights because they believe the candidates are not conservative enough.

Koch Brothers’ Americans for Prosperity Plans $125 Million Spending Spree

Politico – Byron Tau | Published: 5/9/2014

Americans for Prosperity expects to spend more than $125 million this year in support of conservative candidates. The plans, combined with those of other groups in the political operation affiliated with the billionaire industrialists Charles and David Koch, more closely resemble the traditional functions of a national political party than a network of private nonprofit groups. The goal of the network is a long-term movement to expand the political playing field for conservatives, both into new states and into non-traditional demographics.

From the States and Municipalities:

Arizona – Tom Horne Campaign Finance Case to Move Forward

Arizona Capitol Times – Jeremy Duda | Published: 5/14/2014

Yavapai County Attorney Sheila Polk rejected an administrative judge’s conclusion that there is not enough evidence to show Arizona Attorney General Tom Horne and Kathleen Winn, who ran an independent expenditure committee during the 2010 election, illegally coordinated their activities. Polk’s office maintains that records show the two illegally collaborated on ads attacking Horne’s Democratic opponent. Polk has ordered Horne to return about $400,000 to donors and amend his campaign finance reports to properly reflect the contributions.

California – Capitol Alert: California Senate passes bill banning fundraisers at lobbyist homes

San Luis Obispo Tribune – Laurel Rosenhall (Sacramento Bee) | Published: 5/12/2014

The California Senate passed a bill that would ban lobbyists from holding campaign fundraisers at their homes for candidates and elected officials. Senate Bill 1441 now moves to the Assembly. A prominent Sacramento lobbyist and nearly 40 politicians got in trouble earlier this year with the Fair Political Practices Commission for home-based fundraising events that exceeded a $500 limit.

California – Gov. Brown Signs Bill to Shed Light on Political ‘Dark Money’

Los Angeles Times – Patrick McGreevy | Published: 5/14/2014

Nonprofit organizations that make political contributions in California will have to disclose more information about the source of their money under a bill signed into law by Gov. Jerry Brown. Senate Bill 27 requires nonprofits to disclose the names of donors who give them $1,000 or more to spend on political activity, if the group makes contributions of more than $50,000 in a year, or $100,000 over four years. The disclosure requirement takes effect for donations made after July 1 of this year.

Florida – Lobbyists at Water Districts Must Register and Disclose under New Ethics Bill

Miami Herald – Dan Christensen | Published: 5/10/2014

Lobbyists hired to influence spending and policy at Florida’s five water management districts must register and disclose their clients under ethics reforms passed by the state Legislature. If signed into law by Gov. Rick Scott, the bill would for the first time apply state lobbying regulations to some special-purpose governments that raise and spend hundreds of millions dollars every year.

Missouri – Flood Flowing, Ethics Bills Dying as Missouri Legislature Nears Adjournment

St. Louis Post-Dispatch – Virginia Young | Published: 5/14/2014

Missouri lawmakers are feted with free food in the Rotunda, hearing rooms, and area restaurants. Big-ticket items outside the Capitol, such as expensive dinners, sporting event tickets, and out-of-state travel, helped push the total value of the gifts to nearly a million dollars’ worth in 2013, according to state Ethics Commission records. That Is unlikely to change as legislators have stymied bills that would ban or limit the gifts they receive.

New York – Inside Moreland: Documents reveal details of lawmakers’ spending

City & State – John Lentz, Matthew Hamilton, and Morgan Pehme | Published: 5/11/2014

To date, there has been considerable speculation about what exactly the recently disbanded Moreland Commission on Public Corruption investigated during the months it was in operation, but few specifics have been disclosed to the public. Now, commission documents show its investigators sought to determine if New York lawmakers were spending the contributions they received for legitimate campaign-oriented purposes, or whether any money was going to their personal use, in violation of state law.

Ohio – McGinty, DeWine Accuse Youngstown Mayor, Mahoning County Official of Racketeering

Cleveland Plain Dealer – John Caniglia | Published: 5/14/2014

Youngstown Mayor John McNally and Mahoning County Auditor Michael Sciortino were indicted on corruption charges including bribery, conspiracy, and tampering with records. The indictment outlines a series of illegal activities related to a plan to move the offices of the county Department of Job and Family Services. McNally and Sciortino were indicted four years ago on related charges, but the case was dismissed. A judge said then that the charges could be refiled. Prosecutors said at the time their inability to obtain tape recordings held by the FBI and provide them to defense lawyers made it impossible to proceed with the case.

Oklahoma – Oklahoma Secondary School Activities Association to Pay $1,200 Fine

The Oklahoman – Nolan Clay | Published: 5/9/2014

The Oklahoma Secondary School Activities Association agreed to stop providing free football and basketball playoff tickets to state legislators, and will pay $1,200 in civil penalties for not disclosing the gifts to the state Ethics Commission for the last three years. The association was required to disclose the gifts once it started using lobbyists. It continues to blame two former lobbyists for the disclosure failure.

Pennsylvania – Candidates’ Parents’ Mutual Donations

Philadelphia Inquirer – Jonathan Tamari | Published: 5/13/2014

During Kevin Strouse’s bid for congressional seat from Pennsylvania, his parents, who had never before donated to federal candidates beyond the commonwealth, sent money to Democrats in tight congressional races in California, Colorado, Florida, and Illinois. Days before or after, those candidates’ parents sent nearly identical contributions, usually for the maximum allowed, to Strouse’s campaign. The donations appear legal, campaign finance experts say, though some said any agreement among the parents to trade donations could be viewed as an attempted end run around contribution limits.

South Carolina – Judge to AG Wilson: Stop SLED and grand jury probe of House Speaker Harrell

The State – John Monk | Published: 5/12/2014

A judge dismissed allegations of corruption against South Carolina House Speaker Bobby Harrell, ruling such a case must first be considered by a legislative panel before state prosecutors could touch it, and saying a grand jury was improperly empaneled. The grand jury had been considering whether Harrell should be indicted on allegations he used campaign funds for personal use. Critics and lawyers following the case said it was a rare, if unprecedented step for a judge to halt a grand jury investigation.

Vermont – AG Clarifies 2014 Campaign Contribution Limits

Burlington Free Press – Nancy Remsen | Published: 5/14/2014

Vermont Attorney General William Sorrell said the state’s campaign contribution limits will remain the same through the end of the year. The secretary of state’s office asked for the formal opinion after the Legislature passed an updated campaign finance law. The law had an error making it appear there was a gap between the date the old limits expire and January 1 when the new caps take effect.

Wisconsin – Federal Appeals Court Tells Wisconsin Regulators That Campaign Finance Laws Went Too Far

Minneapolis Star Tribune – M.L. Johnson (Associated Press) | Published: 5/14/2014

The Seventh Circuit U.S. Court of Appeals struck down major provisions of Wisconsin’s campaign finance law as unconstitutional. The ruling said state elections officials had overstepped their bounds by prohibiting spending by corporations, setting limits on how much they could raise for affiliated political committees, and establishing burdensome rules for groups that merely mentioned candidates’ names in ads.

Wisconsin – Mistake May Bar Lobbyists from Helping with Fundraising

Milwaukee Journal Sentinel – Patrick Marley | Published: 5/8/2014

State election officials said Wisconsin lawmakers may have inadvertently toughened campaign finance rules by barring lobbyists from passing on campaign donations from their clients. Others disagree with that interpretation. The Government Accountability Board will take up the issue on May 21, but the matter may ultimately be decided by the courts.

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

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

Federal:

Federal Election Commission Approves Bitcoin Donations to Political Committees

Washington Post – Matea Gold | Published: 5/8/2014

The FEC unanimously ruled that political committees could legally accept bitcoin donations. The commission also affirmed that political committees could buy and sell the digital currency as an investment, as long as they turned those proceeds into dollars before spending them. But after the vote, individual commissioners offered conflicting views on whether their decision limits bitcoin donations to small amounts.

Lobby Cash Goes Underground in PR Boom

The Hill – Megan Wilson | Published: 5/7/2014

While traditional lobbying revenue hit its lowest point in four years in the first months of 2014, according to the Center for Responsive Politics, industry insiders say those statistics miss the hundreds of millions of dollars that are flowing to firms that are not registered to lobby. Companies and industries are increasingly using public relations for a broad array of tasks. Unlike lobbyists, public affairs firms are not required to report their clients, specific activities, or revenue, so the amount of money they take in is hard to determine.

Lobbying 101: K Street goes back to school

Politico – Byron Tau | Published: 5/7/2014

Two brand-new programs will offer aspiring lobbyists and K Street veterans alike a chance to learn new skills and beef up their resumes. George Washington University has instituted a master’s degree with a focus on global advocacy and lobbying. The Public Affairs Council unveiled a certificate program aimed at giving mid-career professionals a chance to expand their expertise and improve their management skills. Other established programs include the Association of Government Relations Professionals’ Lobbying Certificate Program and the Public Affairs and Advocacy Institute at American University.

From the States and Municipalities:

Florida – Miami-Dade Lobbyist in Middle of FBI Sting against Mayors Pleads Guilty

Miami Herald – Jay Weaver | Published: 5/7/2014

Richard Candia, a lobbyist caught up in a FBI sting that also snared two South Florida mayors, pleaded guilty to honest services fraud. The undercover operation revolved around a bogus federal grant program that prosecutors say was designed to line the pockets of the mayors, Candia, and another lobbyist instead of benefiting their cities. Under his plea agreement, Candia is expected to be a key witness for the prosecution in the upcoming trial of former Miami Lakes Mayor Michael Pizzi.

Kansas – Brownback Dismisses Reports of FBI Investigation of Associates as Smear Campaign

Wichita Eagle – Bryan Lowry | Published: 5/5/2014

Kansas Gov. Sam Brownback dismissed reports of an FBI investigation into the activities of his former chief of staff, David Kensinger, as a smear campaign. Sources have said three lobbyists and a former state official were interviewed about whether Kensinger and others have been involved in “pay-to-play’ schemes. Two of the interviewees said they were pressured and intimidated by Kensinger to support and donate to certain candidates. But another said no quid pro quo took place.

Kentucky – In Reversal, Kentucky Legislative Ethics Commission Finds Former Lawmaker John Arnold Guilty

WFPL – Jonathan Meador | Published: 5/7/2014

In the face of a public outcry, the Kentucky Legislative Ethics Commission revisited its sexual-harassment case against former state Rep. John Arnold, finding him guilty of three ethics violations and imposing a $3,000 fine. When the commission originally heard the complaints, the hearing ended in a vote of four-to-one that Arnold was guilty. That vote was insufficient for a finding of guilt because the panel has nine members and five votes are needed to take action. That decision led to much public criticism and prompted leaders from both parties to call on the commission to re-hear the case.

Louisiana – Federal Judge Throws Out Campaign Donor Limits for Super PAC Supporting US Sen. David Vitter

Columbus Republic – Melinda Deslatte (Associated Press) | Published: 5/2/2014

A federal judge barred Louisiana from enforcing its $100,000 cap on donations in a four-year election cycle to a super PAC formed by a lawyer who has said it will advocate for U.S. Sen. David Vitter’s 2015 gubernatorial campaign. U.S. District Court Judge Martin Feldman said the state’s contribution limit was unconstitutional for a group that does not coordinate with candidates and “engages only in independent expenditures,” a ruling that could have widespread implications across Louisiana elections.

Missouri – Familiar Impasse Threatens Ethics Measures

Columbia Daily Tribune; Associated Press –   | Published: 5/4/2014

Opposition has once again emerged to suggest ethics reform is at an impasse at the Missouri General Assembly. During each of the past two sessions, bills to curb lobbying have been derailed in the Senate by Democratic attempts to reinstate campaign contribution limits. Both sides show no signs of backing down before lawmakers adjourn on May 16. A stalemate means Missouri would continue to be the only state that allows the trio of unlimited contributions to candidates, unlimited gifts from lobbyists, and no waiting period before elected officials can lobby.

Montana – GOP Candidate Benefiting from Super PAC He Founded Takes Heat from Fellow Republicans

Huffington Post – Amanda Terkel | Published: 5/7/2014

The decision by Special Operations for America to support Ryan Zinke, a U.S. House candidate in Montana, is not exactly surprising. Zinke founded the super PAC himself two years ago. The group has been running ads touting his candidacy and was even encouraging people to back him before he officially jumped into the race. The two were literally so close that at one point, the super PAC was renting office space from Zinke in a building across the street from his house.

New Jersey – Analysis: Ethics rules don’t keep ex-BPU officials from related industries

Bergen Record – Jean Rimbach | Published: 5/6/2014

Despite ethics rules on the books, top New Jersey Board of Public Utilities (BPU) officials routinely move quickly and easily into the industries that once had cases before them. Unlike some other states, New Jersey has no waiting period, during which departing commissioners face a prohibition on taking a job with a regulated utility, leaving open the opportunity for immediate employment with companies they oversaw. And decisions on what constitutes a banned activity in a post-BPU job are made case by case.

Rhode Island – GTECH Was a Corporate Sponsor for R.I. Senate President Pavia Weed’s Trip to Spain

Providence Journal – Katherine Gregg | Published: 5/2/2014

At least a dozen companies and trade associations that had lobbyists at the Capitol last year provided money to the Senate Presidents Forum, which paid for Rhode Island Senate President Teresa Paiva Weed’s trip to Spain. The state Ethics Commission has placed limits on gifts from “interested” parties, defined as any person or an entity that has a direct financial interest in a decision the public official is authorized to make. Paiva Weed believes such trips provide opportunities to confer with counterparts who face the same kinds of issues as Rhode Island. “I did not have one-on-one meetings with [any] lobbyist,” said Paiva Weed.

Rhode Island – Target 12 Investigation Triggers RI Probe of 38 Studios Lobbying

WPRI – Tim White and Ted Nessi | Published: 5/5/2014

Rhode Island Secretary of State Ralph Mollis will investigate whether 38 Studios, the video game company founded by former Boston Red Sox pitcher Curt Schilling that went bankrupt in 2012, violated state lobbying laws. According to WPRI, 38 Studios did not register any lobbyists with the state while the company was active in Rhode Island, as required by law. But a contract uncovered by the television station showed 38 Studios had agreed to pay $300,000 per year to an associate of the former House Speaker Gordon Fox to work with government agencies and officials.

Texas – Ken Paxton’s Business List Has Surged Since He Entered Legislature

Dallas Morning News – Gromer Jeffers, Jr. | Published: 5/4/2014

Since he joined the Legislature in 2003, Texas Sen. Ken Paxton, who is running for state attorney general, has started or become part of 28 business ventures. Paxton, like other lawmakers, has voted on measures that could affect his personal holdings. He has declined to say how much his net worth has grown since he joined the Legislature, and he has refused to release his federal tax returns. The state requires officeholders to list only broad ranges that their income and investments fall in, so it is difficult to say how extensive Paxton’s business holdings are.

Wisconsin – Conflicting Rulings Cloud Wisconsin Campaign Finance Inquiry

New York Times – Monica Davey | Published: 5/7/2014

A U.S. appeals court ruled Wisconsin investigators can continue a secret probe into possible campaign finance law violations by conservative groups in the state. The order stopped for now enforcement of a federal judge’s ruling that the 20-month inquiry must be halted, and records and property seized by investigators returned to the Wisconsin Club for Growth, the group that sued to halt the probe.

Wisconsin – Wisconsin to No Longer Have Aggregate Campaign Funding Limits after Federal Lawsuit Settled

Minneapolis Star Tribune – Scott Bauer (Associated Press) | Published: 5/8/2014

Wisconsin has reached a settlement in a federal lawsuit challenging the state’s limits on how much individuals can contribute to campaigns. The state law prohibits donors from giving more than $10,000 a year to all candidates. The settlement says in light of a U.S. Supreme Court ruling, Wisconsin’s law is unconstitutional so donors now will be able to spend as much as they want in aggregate to PACs and political parties.

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

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

National:

States Are Now Targets of ‘Citizens United’

Politico – Byron Tau | Published: 5/1/2014

General Majority PAC, created last year by U.S. Sen. Harry Reid’s chief of staff, Susan McCue, has won legal challenges in New Jersey and Pennsylvania over the past year to enforce the Supreme Court ruling permitting unlimited corporate and union spending. The successful lawsuits essentially have created the equivalent of super PACs at the state level and are part of a larger transformation of election law in the past few years as the changes at the federal level eventually creep down into state election law.

Federal:

Corporations Join the Party

Politico – Anna Palmer and Tarini Parti | Published: 5/1/2014

While presidential inaugurations and party conventions are not what they used to be as fundraisers have struggled with getting corporate donors to act as sponsors, one weekend a year these fears fade away and companies open their checkbooks to join in the fun of the establishment celebrating the establishment: the White House Correspondents’ Dinner. Dozens of corporations are sponsoring cocktail receptions and late night soirees, along with an educational event or two, during the weekend of the dinner.

Women Take Power as Lobbyists

The Hill – Megan Wilson | Published: 4/29/2014

Whether they are managing the lobbying operations of Fortune 200 companies, running their own shops, or building up a roster of big-name clients at mega-firms, women are steadily moving into roles once considered part of Washington’s “old boys club.” While men still outnumber women on K Street by a significant margin, the environment has changed dramatically from just over a decade ago, when a prominent lobbyist felt she could not successfully open a firm without a man’s name on the masthead.

From the States and Municipalities:

Illinois – Ex-Ald. Mell Starts Lobbying Firm with Help of Daughter Patti Blagojevich

Chicago Tribune – Hal Dardick | Published: 4/28/2014

Former Chicago Ald. Dick Mell has started a new lobbying firm with the help of daughter Patti Blagojevich. Mell said the venture is something to keep him busy in retirement and also a way to financially help his daughter. Her husband, former Gov. Rod Blagojevich, is serving a 14-year sentence in federal prison for corruption. Mell retired before the implementation of a new revolving door policy that as of January 1 bars aldermen from lobbying the city for one year after their last day in office.

Indiana – Ethics Panel: Overhaul needed after Turner actions

The Post-Tribune; Associated Press –   | Published: 4/30/2014

A panel of lawmakers said Indiana Rep. Eric Turner did not violate House ethics rules when he fought legislation that would have cost his family’s nursing home business millions of dollars. But the Ethics Committee expressed concerns that Turner’s efforts to defeat a proposed nursing home moratorium did not achieve the “highest spirit of transparency” and vowed to tighten those rules. Documents show Turner had more than $4 million in profits on the line through his ownership stake in the company.

Kansas – Sources: FBI examines lobbying by Brownback

Topeka Capital-Journal – Tim Carpenter | Published: 4/27/2014

The FBI has been investigating influence peddling involving some of Kansas Gov. Sam Brownback’s top advisers. Of concern were behind-the-scenes financial arrangements related to the privatization of the state’s Medicaid program, which handed exclusive contracts to three for-profit insurance companies to provide services. The inquiry focuses on Parallel Strategies, a lobbying firm founded by David Kensinger, the governor’s former chief of staff. Kensinger quit two months before contracts were signed with the three companies, which reportedly hired a lobbyist who works with him.

Louisiana – Limit on Louisiana Lobbyists’ Spending Edges Up to $58 per Occasion, Starting in July

Columbus Republic; Associated Press –   | Published: 4/29/2014

Starting in July, the amount that can be spent by a Louisiana lobbyist per person for an occasion is increasing to $58. The limit applies to food, drink, and other refreshments purchased for public employees and elected officials. The amount has been steadily rising since the Legislature implemented a $50 spending cap and then allowed it to increase with the consumer price index.

Ohio – Indian Hill Payday-Lender Lobbyist Avoids Jail Time

Cincinnati Enquirer – Chrissie Thompson | Published: 5/1/2014

Lobbyist John Rabenold must pay $2,000 in fines for failing to report gifts of sports tickets and upscale dinners to Ohio lawmakers. He will spend up to three years on probation. Rabenold must also continue to cooperate with an investigation that could result in charges against lawmakers for accepting the gifts and failing to report them.

Pennsylvania – After the Latest Scandals, Pennsylvania Lawmakers Ponder a Gift Ban and Other Tougher Ethics Laws

Harrisburg Patriot News – Jeff Frantz | Published: 4/28/2014

The Senate State Government Committee heard testimony that Pennsylvania’s ethics laws regarding gifts are among the weakest in the country and must be strengthened. The Senate has approved a bill that would prohibit cash gifts, but Committee Chairperson Lloyd Smucker has advocated a wide ban on gifts and hospitality. John Schaaf, counsel for the Kentucky Legislative Ethics Commission, testified about his state, which called a special session after several lawmakers were charged with corruption by the FBI. Schaaf said Kentucky now has some of the toughest ethics measures in the country.

Texas – Nonprofit Groups Using Law to Anonymously Back Candidates

Houston Chronicle – David Saleh Rauff | Published: 4/27/2014

Dark money has been injected into a broad mix of state and local elections in Texas. With the state in the midst of a heated gubernatorial race attracting national attention and national donors, the stream of secret campaign cash from outside groups is expected to steadily increase. The Texas Ethics Commission has put up for public comment proposed rulemaking to address anonymous contributions, and some lawmakers, annoyed after being targeted by dark money, are working to revamp 501(c)(4) disclosure legislation vetoed by Gov. Rick Perry last session.

Vermont – Close to Adjournment, House Democrats Throw $500 Lobbyist Fundraiser

Seven Days – Paul Heinz | Published: 5/1/2014

With just days remaining in the legislative session, Vermont lawmakers and lobbyists took a break to attend a political fundraiser at the Capitol Plaza Hotel. Over the course of two hours, a reporter from the website Seven Days observed nearly two dozen lobbyists and a dozen Democratic lawmakers, mostly committee chairpersons and members of the House leadership team, entering the Ethan Allen room. “… In our business, you trade on knowledge and you trade on relationships,” said lobbyist Joe Choquette.

Wisconsin – John Doe Probe Raises Issue of Potential Conflicts with Justices

Milwaukee Journal Sentinel – Patrick Marley | Published: 4/28/2014

Some are questioning whether four of the state’s seven Supreme Court justices can hear one or more challenges to an ongoing probe into whether Wisconsin Club for Growth illegally coordinated with Gov. Scott Walker’s campaign. The group has spent about $1.8 million to help elect the four justices who make up the conservative bloc controlling the court. Wisconsin’s recusal rules for judges says campaign contributions and independent spending, absent other factors, are not enough to warrant getting out of cases.

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

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