January 30, 2015 •
News You Can Use Digest – January 30, 2015
National: 5 Reasons State House Speakers May Be Prone to Corruption Governing – Alan Greenblatt | Published: 1/26/2015 New York Assembly Speaker Sheldon Silver, who is accused of accepting bribes in the form of legal fees, is the fourth speaker of […]
National:
5 Reasons State House Speakers May Be Prone to Corruption
Governing – Alan Greenblatt | Published: 1/26/2015
New York Assembly Speaker Sheldon Silver, who is accused of accepting bribes in the form of legal fees, is the fourth speaker of a state House to enter into legal peril over the past 10 months. Last year, Bobby Harrell of South Carolina resigned following his indictment, while Gordon Fox of Rhode Island did the same after a federal raid of his house and his legislative office. Mike Hubbard was re-elected as speaker of the Alabama House, despite being indicted on nearly two-dozen felony corruption charges. Hubbard faces a possible trial this spring. This cluster of indictments opens up the question of whether there is something in the nature of the job of speaker that makes corruption more likely to occur.
Federal:
Koch Brothers’ Budget of $889 Million for 2016 Is on Par With Both Parties’ Spending
New York Times – Nicholas Confessore | Published: 1/26/2015
A network of conservative advocacy groups backed by Charles and David Koch aims to spend $889 million in advance of the next presidential election, part of an expansive strategy to build on its 2014 victories. The figure comes close to the $1 billion that each of the two major parties’ presidential nominees are expected to spend in 2016, and it cements the network’s standing as one of the country’s most potent political forces. With its resources and capabilities, including a national field operation and cutting-edge technology, it is challenging the primacy of the official parties.
The Rise of ‘Scam PACs’
Politico – Kenneth Vogel | Published: 1/26/2015
Since the tea party came to prominence in 2009, the conservative movement has been plagued by an explosion of PACs that critics say exist mostly to pad the pockets of the consultants who run them. Combining sophisticated targeting techniques with fundraising appeals that resonate among grassroots activists, they collect large piles of small checks that, taken together, add up to enough money to potentially sway a U.S. Senate race. But the PACs plow most of their cash back into payments to consulting firms for additional fundraising efforts.
From the States and Municipalities:
California – Lobbying Lawmakers with a Personal Touch
Sacramento Bee – Laurel Rosenhall | Published: 1/26/2015
A handful of Sacramento lobbyists use their powers of persuasion to advance personal causes. Many of them make their living advocating for the corporations, unions, and Indian tribes that are huge political donors and pour millions of dollars each year into lobbying California lawmakers. But when a piece of legislation hits a chord, concerning a medical condition, for example, or a childhood trauma, these lobbyists use their connections and savoir faire to shape public policy with a personal touch. Some of them deploy their services for free, while others are hired to advocate on a personal cause.
Kansas – Kansas Ethics Official Supports Change to State Lobbying Laws
Wichita Eagle – Bryan Lowry | Published: 1/26/2015
House Bill 2082 would allow individuals to spend up to $1,000 to sway Kansas lawmakers without registering as a lobbyist. The state has had a $100 threshold since 1975. After 40 years of inflation, the threshold should be increased to ensure private residents do not inadvertently break the laws, said Carol Williams, executive director of the Kansas Government Ethics Commission.
Kentucky – Record $18M Spent Lobbying Legislature
Louisville Courier-Journal – Tom Loftus | Published: 1/23/2015
Interest groups spent a record-breaking $18.4 million to lobby the Kentucky General Assembly in 2014. That was about three percent more than the 2012 lobbying total of $17.8 million, the previous spending record. Although the Legislature meets annually, its 60-day sessions in even-numbered years are longer and costlier than its 30-day sessions in odd-numbered years. The spending includes what more than 600 groups and businesses paid to retain lobbyists at the Capitol or host receptions for lawmakers. Starting this year, they also will be required to report what they spend on advertising during the session to influence legislation.
Massachusetts – No Good Deed Goes Unpunished
CommonWealth Magazine – Jack Sullivan | Published: 1/22/2015
Nicole Bollerman, a third-grade teacher at UP Academy Dorchester, has received praise from around the country since she won a $150,000 prize in an essay contest and then donated the money to her school, which educates some of the city’s poorest students. Then she appeared on “The Ellen DeGeneres Show,” where the host presented Bollerman with a $25,000 check and gave out $500 gift cards for every teacher at her school and backpacks filled with school supplies for every student. But nearly all of the cash gifts, except the students’ backpacks, potentially violate Massachusetts ethics laws, possibly even the $150,000 award that Bollerman gave to the school.
Missouri – Committee OKs Ethics Bill to Close ‘Revolving Door’ of Legislators Becoming Lobbyists
Columbia Daily Tribune – Rudi Keller | Published: 1/27/2015
The Senate Rules, Joint Rules, Resolutions, and Ethics Committee approved legislation that would require Missouri lawmakers to wait two years after leaving office before they can work as lobbyists. The bill also would bar out-of-state travel paid by lobbyists and limit when a lobbyist can report spending on a group of legislators instead of individual members. “There is enough nonsense in this building going on, not necessarily with meals and everything else, I am going to try to clear this up before somebody gets indicted,” said Senate Majority Leader Ron Richard, the bill’s sponsor.
Missouri – Missouri House Speaker Defends Country Club Committee Hearings
PoliticMo.com – Eli Yokley | Published: 1/26/2015
Two Missouri House committee hearings are scheduled to take place at the Jefferson City Country Club and that is drawing criticism. The first hearing is that of the Committee on Utility Infrastructure, chaired by Rep. Lyndall Fraker. He said the Missouri Energy Development Association made the arrangements for his committee to meet at the club, will pay for the meal, and will offer an informational presentation. Pamela Merritt, a spokesperson for Progress Missouri, described the meetings as “sham hearings, away from the Capitol for the sole purpose of consuming free food and drink from lobbyists.” The group is also concerned the hearings might be in violation of the open-meetings law.
Nebraska – Questions Arise after Gov. Ricketts Uses His Own Money to Add Adviser to His Office
Omaha World-Herald – Paul Hammel | Published: 1/27/2015
Jessica Moenning, a longtime political operative of Nebraska Gov. Pete Ricketts, is joining the administration as a privately paid senior adviser. The arrangement has prompted questions about a private employee, paid out of the governor’s own pocket, being involved in public policies and using, at least for a time, publicly funded office space at the Capitol. Jack Gould of Common Cause Nebraska said a privately paid employee most likely would be accountable to the person who paid them, not to the public, and would most likely not be covered by laws governing ethics involving state officials.
New York – Sheldon Silver to Be Replaced as Speaker of New York State Assembly
New York Times – Jesse McKinley, Thomas Kaplan, and Susanne Craig | Published: 1/27/2015
New York Assembly Speaker Sheldon Silver agreed to give up the leadership position he has held for 21 years in the wake of federal corruption charges. The decision came after Democratic lawmakers met behind closed doors for two days to discuss their response to the turmoil that appears likely to end one of the longest active tenures in state politics, and paved the way for them to choose a new leader in an election to be held February 10. Assemblyperson Joseph Morelle, who is the majority leader and a top contender to succeed Silver, will become interim speaker.
Oregon – Cylvia Hayes Discloses another $118,000 for Consulting Fees
Portland Oregonian – Laura Gunderson | Published: 1/28/2015
More of the consulting work done by Oregon Gov. John Kitzhaber’s fiancée is coming to light. Cylvia Hayes confirmed she was paid $118,000 over two years to work with the Clean Economy Development Center. At the time, Hayes was advising the governor on similar topics. Ethics experts said Hayes’ job raises questions, such as whether her compensation was reasonable given the amount of work she did and whether her employer sought to use the connection to influence state policy. The admitted payouts conflict with statements Kitzhaber has made regarding Hayes’ consulting work, how his office handled her contracts, and statements he has made in his annual ethics filings.
South Carolina – Lawmaker Asks Would-Be SC Judges about ‘Supreme Being,’ Gay Marriage, Equal Pay for Women
The State – Cassie Cope | Published: 1/27/2015
South Carolina Rep. Jonathon Hill sent out a 30-question survey asking, among other things, about the “personal relationship” would-be state judges have with the “Supreme Being,” whether they would perform a gay marriage, and how they would rule if a woman sued for equal pay. Candidates for judgeships are barred ethically from responding to some of the questions, said Greg Adams of the University of South Carolina law school. “Answering these questions amounts to a promise to decide future cases in accordance with this political pledge,” said Adams.
Texas – Abbott: State Agencies Must Make Contracting Changes
Texas Tribune – Edgar Walters | Published: 1/28/2015
Texas Gov. Greg Abbott said the need for more oversight and transparency in state contracting is so great that it cannot wait for official action from lawmakers. In a letter to all state agency heads, Abbott ordered them to comply with the provisions of a new bill aimed at addressing problems highlighted by a no-bid contract scandal. The legislation, Senate Bill 353, would require the board chair or head of all agencies to sign all contracts worth more than a $1 million and publicly explain the reason for the lack of competition in any no-bid deal. It also would reiterate that state contract managers must disclose conflicts-of-interest and that officials cannot give a deal to a company in which they have a financial interest.
Utah – Lawmakers Use Swallow Scandal to Stall Campaign-Donation Caps
Salt Lake Tribune – Lee Davidson | Published: 1/27/2015
A House committee voted to hold a bill that would place caps on how much could be contributed to candidates. House Bill 60 would limit donations by individuals to $10,000 every two years for statewide races, and $5,000 in legislative races. It would limit contributions to parties, PACs, and labor unions to $40,000. Lawmakers worried that limits might hamper honest politicians in raising enough money to combat groups that sometimes funnel large amounts of untraceable “dark money” into an election.
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.
January 23, 2015 •
News You Can Use Digest – January 23, 2015
National: ‘Competitive Disadvantage’?: Pay-to-pay rules and the 2016 stakes NBC News – Carrie Dunn | Published: 1/15/2015 Governors may face a unique challenge when it comes to raising the big money it takes to be president from some of the most […]
National:
‘Competitive Disadvantage’?: Pay-to-pay rules and the 2016 stakes
NBC News – Carrie Dunn | Published: 1/15/2015
Governors may face a unique challenge when it comes to raising the big money it takes to be president from some of the most generous donors out there: denizens of Wall Street. That is because of federal “pay-to-play” rules put into place by the Securities and Exchange Commission that effectively bar many state officials from receiving substantial political contributions from financial advisers interested in the often-lucrative business of state contracts, particularly the management of huge state pension funds. The rules can be fuzzy and even experts say it is not always entirely clear which donations trigger a violation. It all means that big-dollar Wall Street donors are playing it safe.
The Wealthiest Are Getting Wealthier, and Lobbying Has a Lot to Do with It
PBS – Simone Pathe | Published: 1/19/2015
Oxfam predicts a widening wealth gap and points a finger at lobbying for much the of wealth accumulation at the top. The world’s richest one percent is likely to control over 50 percent of global wealth by next year, according to a report from Oxfam. The report zeroes in on the political influence affordable to the wealthy: lobbying, specifically in the financial and pharmaceutical and health care industries.
Federal:
How Citizens United Has Changed Politics in 5 Years
U.S. News & World Report – Gabrielle Levy | Published: 1/21/2015
In its Citizens United decision, the U.S. Supreme Court said political spending is protected under the First Amendment, meaning corporations and unions could spend unlimited amounts of money on political activities, as long as it was done independently of a party or candidate. The legal protections for corporations mean much of this spending, known as “dark money,” never has to be publicly disclosed. Most observers say the justices made a good-faith effort to promote transparency and prevent coordination in the ruling. But the contradiction between the court’s stated desire for transparency and its definition of corporations as people protected by the First Amendment created a loophole that campaigns and PACs can use to their advantage.
IRS Rarely Audits Nonprofits for Politicking
Center for Public Integrity – Julie Patel | Published: 1/22/2015
More than 100 nonprofit groups have directly involved themselves in elections during recent years, some spending tens of millions of dollars. The rest, largely charities that are generally prohibited from campaigning for politicians, are seldom monitored by the IRS to ensure they follow federal law. The situation leaves the groups largely free to operate like political committees without fear of reprisal. The IRS told the Center for Public Integrity that it has only begun auditing 26 organizations specifically for political activity since 2010. That represents a tiny fraction of the more than 1 million nonprofits regulated by the agency.
Supreme Court Considers Whether Judges Can Directly Ask for Campaign Donations
Washington Post – Robert Barnes | Published: 1/20/2015
The U.S. Supreme Court appeared divided as it weighed a free speech challenge to a Florida law that bars candidates running for elected judge positions from soliciting campaign contributions. Lanell Williams-Yulee, who ran for county court judge in Tampa, objected when Florida’s Supreme Court publicly reprimanded her for violating a rule preventing candidates from seeking donations. She argued the rule violated her free speech rights. Conservatives on the Supreme Court appeared to favor her free speech argument. The court’s liberals voiced support for the state’s right to ensure the judiciary’s impartiality.
From the States and Municipalities:
Arizona – Phoenix Stalls on Overhaul of Ethics Rules
Arizona Republic – Dennis Gardiner | Published: 1/20/2015
Phoenix City Council members have spent months debating a list of ethics reforms recommended by a task force. The council initially warmed to major changes, but several members reversed course on a proposal to create a commission to enforce any new rules and voted it down. Although the subcommittee scuttled plans for an ethics commission, they have advanced new gift-reporting requirements for elected officials and board members. By requiring leaders to report gifts exceeding $50, supporters say, the new rules promote transparency. But council members added a few exemptions to the requirement, including a provision that would allow elected officials not to report gifts they receive related to travel for city business.
California – Billboard Firm to Put Up Signs Backing Six L.A. Council Candidates
Los Angeles Times – David Zahniser | Published: 1/20/2015
A billboard company challenging Los Angeles’ restrictions on digital signs will donate tens of thousands of dollars in advertising to help city Councilperson Jose Huizar, who heads the committee drafting new sign regulations, and five other candidates in the March 3 election. City law bars campaign contributors from giving council candidates more than $700 during an election cycle. But there are no limits on expenditures such as those being made by Lamar Advertising, as long as they are made independently from a candidate’s campaign.
Connecticut – Can Connecticut’s Campaign Finance Reforms Be Saved?
CT Mirror – Mark Pazniokas | Published: 1/19/2015
Prescriptions for fixing Connecticut’s system of publicly financing campaigns vary wildly. Its tight limits on contributions and spending turned porous in 2014, tarnishing what had been a shiny instrument of campaign finance reform. One basic challenge is how the Citizens’ Election Program can remain relevant in an era of unlimited independent expenditures. Another is how it can survive some of the changes made in 2013 in response to the fear of outside money.
Florida – Jeb Bush Kept Key Roles in Florida Firm amid Signs of Trouble
Washington Post – Tom Hamburger and Matea Gold | Published: 1/19/2015
One of the first business ventures that Jeb Bush got involved with after leaving the Florida governor’s mansion in 2007 was InnoVida, a company that ended up bankrupt, with two top executives in federal prison. Previously unreported court documents suggest Bush was more involved with the company than has been publicly known, and he deepened his role even as others grew concerned about its financial practices. Bush’s aides say he broke from the company and voluntarily repaid consulting fees as soon as questions arose. Nevertheless, Bush’s involvement with InnoVida provides insight into his approach as a businessperson and illustrates how his corporate ties could affect his presidential aspirations.
Missouri – At $37 Million and Counting, Mega-Donor Sinquefield Says He’s Not Going Anywhere
St. Louis Post-Dispatch – Kevin McDermott and Virginia Young | Published: 1/18/2015
To hear U.S. Sen. Claire McCaskill tell it, multimillionaire Rex Sinquefield pulls Missouri’s political strings like a high-priced puppet master. “He is, methodically, through a number of front groups, trying to buy government, buy judges, buy journalists … buy the Legislature,” warns McCaskill. It is a view widely echoed by fellow Democrats and even some Republicans. Since 2005, Sinquefield has donated more than $37 million to state-level candidates and causes. He is by far the most prolific political patron in the history of the state, and one of the biggest in the country.
New York – Sheldon Silver, New York Assembly Speaker, Is Accused of Taking Millions in Graft
New York Times – William Rashbaum, Thomas Kaplan, and Susanne Craig | Published: 1/22/2015
New York Assembly Speaker Sheldon Silver was arrested on public corruption charges, accused of using his position as one of the most powerful men in Albany to obtain millions of dollars in bribes and kickbacks masked as legitimate income. He is charged with mail fraud, wire fraud, and extortion. The complaint maintains that for more than a decade, Silver devised a scheme “to induce real estate developers with business before the state” to use a real estate law firm controlled by a lawyer who had once worked as Silver’s counsel who orchestrated payments to the speaker for referrals to the firm.
Pennsylvania – Wolf Bans Gifts for Executive Branch First Day as PA Governor
Watchdog.org – Andrew Staub (PA Independent) | Published: 1/21/2015
On his first day in office, Pennsylvania Gov. Tom Wolf signed executive orders banning gifts for members of the executive branch and prohibiting no-bid contracts for private law firms. The ban makes exceptions for gifts from family and friends, bank loans, and free participation in gatherings in which officials are acting in their official duties and have been invited. There also are at least six proposals addressing gifts in the state House and Senate.
Texas – Prosecutor: Perry veto forced an end to several cases
Texas Tribune – Ross Ramsey and Reece Hamilton | Published: 1/17/2015
Texas Governor Rick Perry was indicted last summer for a veto threat of the Travis County public investigation unit’s funding. The vetoed funding killed an investigation into the state Department of Public Safety’s no-bid contracts. The Public Integrity Unit had been investigating the agency for awarding up to $20 million in no-bid contracts to a Virginia defense contractor for Perry’s expanding border security measures. Perry’s nixing of $7.5 million of the unit’s funding depleted its resources, reportedly shuttering the investigation.
Virginia – Judicial Appointment for Puckett’s Daughter Clears Va. Legislature
Washington Post – Laura Vozzella and Jenna Portnoy | Published: 1/20/2015
The Virginia Legislature voted to give Martha Puckett Ketron a juvenile court judgeship. In previous sessions, the Senate had always refused to appoint her to a full, six-year term while her father, Phillip Puckett, served in the chamber, citing an anti-nepotism policy. Phillip Puckett stepped down in June, in part, he said, to clear the way for her appointment. But the timing of his exit, which threw control of the evenly divided Senate to Republicans, infuriated fellow Democrats and triggered a six-month federal investigation that concluded without charges. Puckett also left as he was discussing a job for himself with the state tobacco commission. Democrats accused him of trading his Senate seat for jobs for himself and his daughter.
Washington – House Follows Senate, Bans Open Gun Display in Visitor Galleries
Seattle Post-Intelligencer – Joel Connelly | Published: 1/19/2015
The Washington Legislature adopted rules prohibiting display of weapons in the visitor galleries after an incident in which about 15 armed “open carry” advocates marched from a demonstration on the Capitol steps into the House gallery. Such arms-packing gun rights advocates in the future will be asked to leave or subject to arrest for criminal trespassing.
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.
January 16, 2015 •
News You Can Use Digest – January 16, 2015
National: How Campaigns Are Courting 16-Year-Olds Politico – Darren Samuelsohn | Published: 1/11/2015 Presidential campaigns are looking to target teenagers who are not yet 18 but will be by Election Day 2016. More than eight million people will become legal adults […]
National:
How Campaigns Are Courting 16-Year-Olds
Politico – Darren Samuelsohn | Published: 1/11/2015
Presidential campaigns are looking to target teenagers who are not yet 18 but will be by Election Day 2016. More than eight million people will become legal adults eligible to vote for the first time by the next general election. Campaigns are eager to find ways to get through to these 16- and 17-year-olds who are still minors and, in most cases, more likely to be concerned with making it to class on time than who should be elected president. Indeed, both Democrats and Republicans are desperate for any edge at the polls, and they say they will be employing data mining techniques in search of supporters from this ripe demographic that has little or no track record in politics.
Federal:
Rating 2016 Candidates by Donors Busts Conventional Wisdom
CNN – Chris Moody | Published: 1/14/2015
Crowdpac uses public campaign finance records, along with other data, to plot where potential White House contenders fall on the political spectrum. Crowdpac’s algorithm displays the contenders on a liberal–conservative spectrum, and rates each person on 15 issues. The third piece of the algorithm, which includes the ideology of donors and examines how the politicians spend their own money, makes Crowdpac’s analysis unusual, and helps provide a clearer picture of how those seeking the White House compare to their peers. The results can confound commonly held perceptions.
Who Needs Lobbyists? See What Big Business Spends to Win American Minds
The Center for Public Integrity – Erin Quinn | Published: 1/15/2015
When Washington, D.C.’s biggest trade associations want to wield influence, they often put more of their money into advertising and public relations. The Center for Public Integrity attempted to review spending by the nation’s most “politically active” trade groups, ones that spent more than $1 million on lobbying in 2012. The IRS requires the groups to report their top five contractors. Of $3.4 billion in contracts reported by trade groups from 2008 through 2012, more than $1.2 billion, or 37 percent, went toward advertising, public relations, and marketing services, more than any other category.
From the States and Municipalities:
California – L.A. Alliance for a New Economy Confirms Failure to Report Lobbying
Los Angeles Times – Emily Alpert Reyes | Published: 1/9/2015
The Los Angeles Alliance for a New Economy (LAANE), an influential group that successfully advocated for hiking the minimum wage for hotel workers, confirmed it left off information on reports filed with the city about how much it had paid to employees who act as lobbyists. Between 2009 and 2014, LAANE did not report any payments to its registered in-house lobbyists or any related expenses, despite the fact that emails and calendars for city officials show those lobbyists met regularly with lawmakers and their aides and helped suggest wording to city lawyers for the hotel wage ordinance. The group also did not list any matters its representatives lobbied on.
Florida – Ethics Deadbeats: Debt collectors seek $500K in outstanding fines from Florida public servants
Miami Herald – Christina Veiga | Published: 1/12/2015
The Florida Commission on Ethics has hired debt collectors to chase $487,549.96 in late fees from public officials and employees that have accumulated, in some cases, for more than a decade. Financial disclosure forms, which list net worth, sources of income, real estate holdings, and debts have been the repeated source of trouble or controversy for politicians over the years. Scofflaws are fined $25 a day until they file or they hit the cap of $1,500 per year. After 60 days, unpaid debts get sent to collections. If the person is still in public office, and receives a salary, then the commission can garnish paychecks, a new power that was given to the agency last year.
Illinois – Illinois Inauguration Raises Questions of Corporate Influence
Reuters – Mark Guarino | Published: 1/11/2015
Watchdog groups say activities surrounding Illinois Gov. Bruce Rauner’s inauguration are among the priciest of any incoming governor and take advantage of a loophole in campaign finance that allows wealthy special interests to gain access to those who hold political power. These groups say Rauner’s inauguration festival, with a total tab estimated to reach $10 million, is emblematic of a trend in other states. Critics say the costly celebrations, funded by private donors, skirt ethics laws and open conflicts-of-interest for elected officials.
Illinois – Rauner Spends 1st Full Day as Governor on Ethics, Reversal of Quinn Actions
Chicago Tribune – Monique Garcia, Rick Pearson, and Ray Long | Published: 1/13/2015
Illinois Gov. Bruce Rauner issued an executive order banning some state employees from negotiating for a lobbying job while working for the state. The order also prohibits employees in state agencies and the executive branch from taking lobbying positions for one year after they leave their public sector job. The new rules prevent state employees from receiving any free meals, beverages, or gifts from lobbyists and government business interests, or have travel expenses covered to discuss state business. State workers could still receive food and beverages served at business meetings or receptions in the course of their official duties, subject to approval from the governor’s office or agency.
Kansas – Grand Jury Investigates Loans to the Re-Election Campaign of Gov. Sam Brownback
Kansas City Star – Roxana Hegeman (Associated Press) | Published: 1/8/2015
Federal grand jurors are scheduled to hear testimony about loans made to the re-election campaign of Kansas Gov. Sam Brownback. Lt. Gov. Jeff Colyer made three $500,000 loans to the campaign in 2013 and 2014 and was repaid for two of them in days. Such large loans by candidates to campaigns are uncommon in Kansas, and the pattern of repaying one within days is a highly unusual move that has generated unanswered questions about where Colyer obtained such a large amount of cash. Brownback and his wife also lent the campaign $200,000 last year. No other loans are listed in public reports.
Kentucky – Draft of Report on Kentucky Legislature Remains Untouched, Unreleased after Nine Months
Lexington Herald-Leader – John Cheves | Published: 1/14/2015
In October 2013, the Kentucky Legislature faced a scandal: a lawmaker who resigned over accusations he sexually harassed women at the Legislative Research Commission (LRC); allegations that sexual misconduct and favoritism made the LRC a hostile workplace; and the abrupt departure of longtime Director Bobby Sherman, whom police investigated for shredding documents days after he quit. The Legislature gave a $42,410 contract to the National Conference of State Legislatures (NCSL) to perform a performance audit of the LRC, the bureaucracy that runs the legislative branch of state government. NCSL submitted a draft report in April to Senate President Robert Stivers and House Speaker Greg Stumbo. But the leaders never responded, and rank-and-file lawmakers said they have not seen the report.
Minnesota – Minnesota Sen. Tomassoni Takes Job with Group That Lobbies Legislature
Minneapolis Star Tribune – J. Patrick Coolican | Published: 1/12/2015
Minnesota Sen. David Tomassoni was hired as executive director of the Range Association of Municipalities and Schools, an organization funded in part by public money that lobbies for those interests at the Capitol. His hiring immediately raised questions about whether the two roles would clash. Tomassoni said his role will be administrative, so he will not be lobbying his fellow lawmakers; the group will hire an independent lobbyist if it feels it needs to. He also promised to recuse himself from any votes where the association stands to benefit. Tomassoni’s work will not start until after the 2015 legislative session ends in late May, and he will take an unpaid leave of absence during every session.
North Carolina – Lobbyists, Not Just Lawmakers, Descend on Raleigh as New Session Begins
Raleigh News & Observer – Lynn Bonner | Published: 1/14/2015
North Carolina lawmakers filled the chambers of the Legislative Building for the start of a new session. But the day also launched the intense work of lobbyists. With 443 registered so far, lobbyists outnumber lawmakers by a ratio of more than two-to-one. While the state’s part-time legislators get much of the attention and cast the deciding votes, many ideas for new laws come from the lobbyists and their employers, which cover all sorts of interests. With permission from lawmakers, lobbyists can submit suggested bill language to legislative staffers.
Texas – House Panel Recommends Texas Legislature Take Action on Dark Money
Houston Chronicle – David Saleh Rauf | Published: 1/8/2015
Labeling “dark money” spending a corrupting force in the democratic process, the House Committee on State Affairs released a series of recommendations in a report that suggests the Texas Legislature take action to require disclosure of contributors to 501(c)(4) nonprofits. 501(c)(4)s are allowed to make independent expenditures to influence elections without having to disclose donors and have become a hot topic for state lawmakers after Gov. Rick Perry vetoed a dark money disclosure measure last session. The state Ethics Commission passed new rules intended to define when a 501(c)(4)’s political activity crosses the line and should have to disclose donors like a traditional PAC. The regulation is currently being challenged in court.
Texas – Judge Blocks City Campaign Fundraising Rule
Houston Chronicle – Theodore Schleifer | Published: 1/9/2015
A federal judge temporarily blocked a law limiting when candidates in Houston municipal elections can raise money. An ordinance prevented city candidates from raising money prior to February 1. The lawsuit against the city, filed by candidate Trebor Gordon, argued his First Amendment right to political expression authorized him to raise money for his campaigns whenever his contributors wished to donate.
Virginia – Jailed Lawmaker’s Return Brings Virginia Capitol More Unwanted Attention
Washington Post – Jenna Portnoy and Laura Vozzella | Published: 1/14/2015
A newly re-elected Virginia lawmaker hitched a ride from the jailhouse to the statehouse to be sworn in, even as legislative leaders discussed how to throw him out. Del. Joseph Morrissey, who spends his nights in jail because of a conviction for contributing to the delinquency of a minor, resigned his seat when he was convicted but won it back in a January 13 special election. He was back in his familiar legislative arena as the session convened, but with a whole new set of circumstances: colleagues ignored him, he was stripped of committee assignments, he had to give up his old office, and his desk on the House floor was put in a far corner.
West Virginia – In Unusual Arrangement, W.Va. Party Chairmen Double as Lobbyists
Charleston Gazette – David Gutman | Published: 1/11/2015
Larry Puccio left then-West Virginia Gov. Joe Manchin’s staff in early 2010 and became a lobbyist a week later. He was elected as state Democratic Party chairperson five months after that. Now, he is not alone in serving in the dual roles. West Virginia GOP Chairperson Conrad Lucas registered as a lobbyist with the state Ethics Commission in early December. While this might not be unusual in West Virginia – former Democratic Party Chairpersons Nick Casey, Chuck Smith, and Steve White all lobbied while they were leading the party – it is very unusual nationwide. Other than Puccio and Lucas, there are only two other party chairs anywhere in the country who are active registered lobbyists.
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.
January 9, 2015 •
News You Can Use Digest – January 9, 2015
National: Governors’ Inaugurals Fueled by Political Donors Raleigh News & Observer – Paul Weber (Associated Press) | Published: 1/3/2015 Eleven new governors are taking office in January, and nearly two dozen others are renewing their oaths for second, third, or – […]
National:
Governors’ Inaugurals Fueled by Political Donors
Raleigh News & Observer – Paul Weber (Associated Press) | Published: 1/3/2015
Eleven new governors are taking office in January, and nearly two dozen others are renewing their oaths for second, third, or – in the case of Iowa Gov. Terry Branstad – sixth terms. Many will celebrate with bands and blowout balls, with much of the bill footed by the same supporters who bankrolled their victorious campaigns. In many states, corporate money that was banned before Election Day is allowed to cover the tab for inaugural parties. Critics see the events as another means for corporations and wealthy individuals to curry political favor with the state’s highest office, and in many cases without the transparency required by usual campaign finance laws.
Jeb Bush Education Foundation Played Leading Role in Mixing Politics, Policy
Washington Post – Lindsey Layton | Published: 1/6/2015
Jeb Bush’s Foundation for Excellence in Education has played a leading role in many states since its creation in 2008, following his two terms as governor of Florida. It has forged an unusual role mixing politics and policy – drafting legislation and paying travel expenses for state officials, lobbying lawmakers, and connecting public officials with industry executives seeking government contracts. The foundation, from which Bush resigned as chairperson as part of his preparations for a possible White House bid, has been criticized as a backdoor vehicle for major corporations to urge state officials to adopt policies that would enrich the companies.
Federal:
All Cooled Off: As Congress convenes, former colleagues will soon be calling from K Street
Center for Responsive Politics – Staff | Published: 1/5/2015
A key provision of the Honest Leadership and Open Government Act reined in lobbying by members of Congress, their top staffers, and other key government officials who move from their federal posts directly into the influence industry. The idea was to limit their ability to benefit immediately on their insider knowledge by lobbying their former colleagues. The restrictions, which vary depending on an individual’s government position, are lifted after a set period of time. But of the 104 former members and staff whose waiting period ends during the first session of the 114th Congress, 29 are already in government relations, “public affairs,” or serve as counsel at a firm that lobbies. And 13 of those are even registered as lobbyists, working to shape policy in Congress or the executive branch on behalf of paying clients.
Judge Candidates’ Free-Speech Rights at Issue before the Supreme Court
Washington Post – Rober Barnes | Published: 1/4/2015
Voters failed to find Lanell Williams-Yulee’s candidacy for Hillsborough County judge compelling, but the U.S. Supreme Court has a greater interest. The justices will consider whether the action that resulted in a rebuke by the Florida Bar Association and a fine of more than $1,800 – violating Florida’s restriction against directly soliciting contributions to judge campaigns – is instead an unreasonable constraint on Williams-Yulee’s right to free speech. Thirty states prohibit judicial candidates from directly asking for campaign contributions, in most cases leaving that work to a committee the candidate establishes. The Florida Supreme Court, found the restriction is constitutional.
From the States and Municipalities:
Arizona – Glendale Officials Take Free Tickets to Concerts, Sports
Arizona Republic – Pete Corbett | Published: 1/7/2015
City administrators, Glendale City Council members, and their guests received 90 free tickets for seats in a suite at 13 concerts at the city-owned Gila River Arena the past two years, including shows by Taylor Swift, Katy Perry, Justin Timberlake, and the Who. Some watchdogs said the practice raises ethical, and possibly legal, issues for city officials. “We’re all cognizant at how the public looks at this, how this looks for us to get free tickets in a taxpayer-funded facility,” said former Vice Mayor Yvonne Knaack.
Maine – LD 1750: A study in how special interests get their way in the Maine Legislature
St. John Valley Times – Naomi Schalit (Maine Center for Public Interest Reporting) | Published: 1/6/2015
During the summer of 2013, the Maine Department of Environmental Protection made things harder for wind developers by putting more requirements into permit applications. The wind lobby saw the new requirements as illegal and obstructionist, and they believed the red tape would slow down or even halt the expansion plans of their multi-million-dollar industry. They needed help and by the summer of 2014, they knew where to go: to their friend and supporter Justin Alfond, the president of the state Senate. Critics say the story of how the wind industry’s problem was taken up by Alfond and his staff demonstrates a deep level of coordination between special interests and legislative leaders that often leaves citizens on the sidelines of the democratic process.
Maryland – Official Says He Was Wrong to Ask That His Name Not Be Used
New York Times – Associated Press | Published: 1/7/2015
Frederick County Council member Kirby Delauter apologized for threatening to sue a local newspaper if it used his name without permission, an ultimatum that earned him a two-day skewering in the blogosphere. Delauter said he had acted abruptly and out of frustration. Delauter supporter Tom Caulfield, owner of Chubby’s BBQ, said Delauter is a selfless public servant under constant attack by liberals and The Frederick News-Post. He likened him to Howard Beale, the angry television anchorman in the 1976 film, “Network,” who shouted, “I’m as mad as hell and I’m not going to take this anymore!” Former county board member Kai Hagen said the scorn heaped on Delauter online was well-deserved. “His behavior is crude. He is completely, it seems, incapable of empathy and sympathy and understanding,” said Hagen.
Massachusetts – Inaugural’s Top Donors Mingle with Key Officials
Boston Globe – Stephanie Ebbert | Published: 1/8/2015
The night before he was to be sworn in as governor of Massachusetts, Charlie Baker invited the top private sponsors of his inaugural celebration to a dinner at Alden Castle, where they could meet his incoming Cabinet members. About 100 people were invited to join the governor-elect at the “candlelight dinner.” State employees and Cabinet secretaries are not allowed to be named in fundraising material or featured at fundraising events. Baker senior adviser Jim Conroy distinguished the inaugural-eve gathering from campaign events, saying the presence of incoming Cabinet members was not advertised to donors. He said those who gave $25,000 received two tickets.
Missouri – Publisher’s Parties Highlight Reporting Issues in Missouri Ethics Laws
Columbia Daily Tribune – Rudi Keller | Published: 1/4/2015
The offices of the Missouri Times was the venue last year for legislators and their staffs to enjoy parties with lobbyist-paid liquor and snacks that went largely unreported to the state Ethics Commission. Publisher Scott Faughn called each party an “unveiling,” honoring a particular lawmaker. He text-messaged invitations with the names of sponsoring lobbyists or organizations. Faughn recalled that as many as six were held. A review of reports from individual lobbyists and the registered representatives of organizations named in text messages showed only one was reported. Faughn said he checked with the commission and believes lobbyists are not required to report the money spent for refreshments at the parties.
New Jersey – Christie’s Ties to Cowboys Owner Raise Ethics Questions
USA Today – Bob Jordan (Asbury Park Press) | Published: 1/6/2014
New Jersey Gov. Chris Christie has now attended three games at the invitation of Dallas Cowboys owner Jerry Jones, who picked up the tab for the tickets and travel. Video of a clumsy hug between Christie and Jones in the owner’s luxury box during a key moment of a playoff game has gone viral. It also has focused fresh attention on the relationship between the potential Republican presidential hopeful and Jones. Christie in 2013 vouched for a Jones group in bidding for a Port Authority of New York and New Jersey contract worth millions of dollars.
South Carolina – McMaster Facing State Ethics Charges
The State – Andrew Shain | Published: 1/6/2015
South Carolina Lt. Gov.-Elect Henry McMaster faces 51 counts of campaign finance violations dating to his 2010 campaign for governor. A closed-door hearing in the case has been scheduled for March 18. McMaster, the state’s former attorney general, lost the Republican gubernatorial primary in 2010 to Gov. Nikki Haley. After the loss, McMaster continued to accept donations in excess of maximum contribution limits, alleges the complaint. “His campaign created a phantom general election in which he was not participating and solicited additional donations for that election in an effort to circumvent the law,” says the complaint.
Virginia – Bob McDonnell, Ex-Governor of Virginia, Sentenced to 2 Years for Corruption
New York Times – Jennifer Steinhauer | Published: 1/6/2015
Former Virginia Gov. Bob McDonnell was sentenced to two years in prison for public corruption. He was accused of selling the influence of his office to the chief executive of a dietary supplements company. A jury found McDonnell and his wife were guilty of accepting more than $165,000 in loans and gifts, including a Rolex watch, in exchange for promoting a nutritional supplement marketed by Star Scientific. McDonnell, who was once considered a possible contender for the White House, initially faced the prospect of up to 20 years in prison, but the judge lowered that range to six-and-a-half to eight years. McDonnell’s lawyers, citing what they described as years of good work and commitment to public service, had argued a sentence of community service should suffice.
Wisconsin – Republicans Eye Rewrite of Campaign Finance Laws, Other Election Changes
Chippewa Herald – Matthew DeFour | Published: 1/4/2015
Republicans are poised to make the most sweeping revisions to Wisconsin’s campaign finance law in decades. Many of those changes are already in effect after a series of federal court decisions made many current laws unenforceable. But a more comprehensive rewrite is in the works, and the overhaul is getting a thumbs up from the Government Accountability Board, a frequent target of GOP ire that is itself in line for a possible makeover. Among other things, lawmakers are considering increasing campaign contribution limits and clarifying the coordination restrictions at the heart of a recent investigation into Gov. Scott Walker’s recall campaign.
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.
January 2, 2015 •
News You Can Use Digest – January 2, 2015
National: A Bipartisan Push to Limit Lobbyists’ Sway over Attorneys General New York Times – Eric Lipton | Published: 12/26/2014 A series of articles in The New York Times examined how lawyers and lobbyists – from major corporations, energy companies, and […]
National:
A Bipartisan Push to Limit Lobbyists’ Sway over Attorneys General
New York Times – Eric Lipton | Published: 12/26/2014
A series of articles in The New York Times examined how lawyers and lobbyists – from major corporations, energy companies, and even plaintiffs’ law firms – have increasingly tried to influence state attorneys general. These outside players have tried to shut down investigations, enlist the attorneys general as partners in litigation, or use their clout to try to block or strengthen regulations emerging from Washington, found the investigation. A debate has started among state attorneys general, even those who believe the problem is more about the perception of a possible conflict-of-interest, over steps that could be taken to insulate them from outside influence.
Cuomo and Christie, Defying Legislatures, Reject Bill to Overhaul Port Authority
New York Times – Jesse McKinley | Published: 12/27/2014
Governors Chris Christie and Andrew Cuomo vetoed legislation passed unanimously in both of their state Legislatures that would change the management structure at the Port Authority of New York and New Jersey. Instead, Christie and Cuomo said they accepted revisions recommended by a special panel to reorganize the agency. The veto came as prosecutors continue to investigate the politically motivated lane closings at the bridge last year, a scandal that marred Christie’s reputation. The bi-state agency has also faced ethical questions over its reputation for rewarding politically connected officials with patronage jobs and allies with lucrative contracts.
What We Learned about the American Voter in 2014
Politico – Jonathan Topaz | Published: 12/31/2014
The Republican landslide in the midterm elections has both parties poring over voting data, hoping to glean insights about the current state of the electorate before the 2016 election. But it might take until the next presidential cycle to answer the most pressing question of whether the GOP’s success in 2014 is the result of significant changes in how voters view the two parties, or the structural difference between the electorates in presidential and midterm years so great that Democrats still maintain a strong demographic advantage going into 2016.
Federal:
Big Money Breaks Out
Politico – Kenneth Vogel | Published: 12/29/2014
Billionaires Michael Bloomberg, Sheldon Adelson, and David Koch were among the top 10 largest contributors to federal political campaigns in the 2014 midterm elections, according to Politico. The 100 biggest campaign donors gave $323 million in 2014, almost as much as the $356 million given by the estimated 4.75 million people who gave $200 or less. The trajectory is pointing to a heyday of mega-donors, asserted political consultant Mark McKinnon. “When 100 big donors give as much almost 5 million small donors, with whom do we expect candidates to spend their time, and whose interests do we think they will represent?” asked McKinnon.
Republicans Try to Fix Damage Scalise’s 2002 Speech Could Do in 2016
New York Times – Jonathan Martin and Jackie Calmes | Published: 12/30/2014
U.S. Rep. Steve Scalise, the House majority whip, acknowledged he spoke to a white supremacy group in 2002, though he said he did not realize what kind of organization it was, is not affiliated with it, and does not agree with its beliefs. The group was the European-American Unity and Rights Organization, founded by David Duke, a former grand wizard of the Ku Klux Klan. The controversy erupted as Republicans were making a renewed effort to reach out to black voters. It threatened to cloud their agenda after capturing control of the Senate and adding to their House majority in the midterm election.
From the States and Municipalities:
Arizona – Firing of VA Clinic Chief Upheld over Gifts, Not Wait Times
USA Today – John Wagner (Arizona Republic) | Published: 12/24/2014
An administrative judge upheld the dismissal of the director of the Veterans Affairs (VA) health care system in Phoenix for accepting more than $13,000 in airline tickets and other gifts from a consultant for the health care industry and for failing to disclose some of the gifts. The former director, Sharon Helman, had also been implicated in the falsification of the hospital’s waiting lists for care, a problem at Phoenix and other veterans’ hospitals that roiled the VA. But the administrative judge, Stephen Mish, concluded the department had not provided sufficient evidence to justify firing Helman for the manipulation of waiting lists, which concealed delays in providing care to veterans.
California – New FPPC Chair Takes Low-Profile Approach
Sacramento Bee – Laurel Rosenhall | Published: 12/24/2014
As Jodi Remke takes the mantle as chairperson of the California Fair Political Practices Commission, she said she is mainly focused on beating bureaucracy at the agency. Her predecessor, Ann Ravel, brought national attention to the sometimes-obscure commission that polices California’s lobbying and campaign finance laws. Remke said she wants to continue Ravel’s work going after serious violations of the state’s Political Reform Act. But she has her own vision for the position, too, one that involves increasing the FPPC’s use of technology and streamlining the requirements involved for officials to follow the law.
California – Politicians Use ‘Ghost’ Campaigns to Fight Specter of Lost Funds
San Francisco Chronicle – John Wildermuth | Published: 12/25/2014
California election law requires candidates to close their campaign accounts and disburse the money within two years after losing an election or being termed out of office, unless they are planning to run for another office. Plenty of out-of-work politicians want to hang on to their campaign cash for as long as they can, however, and the rule has forced some veteran officeholders into some unusual political contortions. At age 82, former state Sen. John Burton is head of the California Democratic Party, but he has opened a not-especially-active campaign for state superintendent of public instruction four years from now.
Georgia – University System of Georgia Spent More Than $48,000 on Perks for State Lawmakers
Columbus Republic; Associated Press – | Published: 12/28/2014
A state law passed in 2013 prohibits Georgia legislators from receiving gifts worth more than $75. But that law also excludes public employees from being considered lobbyists. University System of Georgia officials spent tens of thousands of dollars in 2014 on football tickets, meals, and events for state lawmakers. Some lawmakers say University System officials acting in a lobbying capacity should have to register as such and report their spending to the state.
Massachusetts – State Campaign Contributions Set to Double
Boston Globe – Joshua Miller | Published: 12/27/2014
Candidates for all municipal, county, and state elected offices in Massachusetts can now raise $1,000 per year from individuals, double the old limit of $500. The change, part of a multifaceted campaign finance package signed into law this summer, is certain to be a boon to campaign accounts. Beyond that, there is dispute about what the increase might mean. Some believe the increase will simply make campaigns more expensive. Others think it might allow politicians to raise the money they need in less time, and spend their newly free hours with regular voters, building support.
Missouri – With Lobbyists, Missouri Lawmakers Golf and Dine Far from Jefferson City
PoliticMo.com – Eli Yokely | Published: 12/30/2014
In Jefferson City, where the statehouse is governed by no limits on personal gifts and campaign contributions to lawmakers from lobbyists, it is common practice for legislators to get their meals, lodging, and drinks paid for by lobbyists, according to records maintained by the Missouri Ethics Commission. But on a recent trip to Las Vegas trip attended by three lobbyists and eight lawmakers, the only thing that was reported to the commission was an $8.50 expense from Noranda Aluminum executive Charles Skoda to Rep. Don Gosen. Though no exchange of gifts was reported, the episode reveals the close ties lobbyists form with state lawmakers and the extent to which they can legally go to push their agenda.
New York – U.S. Said to Investigate Sheldon Silver, New York Assembly Speaker, Over Payments
New York Times – William Rashbaum, Thomas, Kaplan, and Susanne Craig | Published: 12/29/2014
Federal authorities are investigating the sources of income of New York Assembly Speaker Sheldon Silver. The probe stems from an inquiry U.S. Attorney Preet Bharara began in April after Gov. Andrew Cuomo disbanded a panel examining corruption in the state Legislature. Among the areas the panel looked into was lawmakers’ sources of income, which must be disclosed. In addition to his $121,000 salary from the state, Silver has for years listed income from acting as “of counsel” to Weitz & Luxenberg, though he has declined to say what he does for the law firm. In 2013, Silver said he made from $650,000 to $750,000 from outside work including, though not limited to, Weitz & Luxenberg.
North Carolina – Opinion Says Lawmakers Can Raise Money for Political Nonprofits
WRAL – Mark Binker | Published: 12/29/2014
The Legislative Ethics Committee issued an opinion saying North Carolina lawmakers are allowed to raise money for political nonprofits that collect cash to lobby or elect members to the General Assembly. Raising money for political nonprofits is frequently easier than gathering cash into campaign accounts because the same fundraising limits do not apply and nonprofits are often not required to disclose the names of donors. Nonprofits also can raise money from interested groups when an important legislative decision is approaching, rather than having to wait like lawmakers until after the session ends.
Oklahoma – Ethics Agency Fails To Collect Most Fees
KGOU – M. Scott Carter (Oklahoma Watch) | Published: 12/29/2014
As of early 2014, candidates, their campaigns, and other organizations owed the Oklahoma Ethics Commission more than $200,000 in unpaid fees for late or no filing of statements of income and spending. The commission’s executive director said many fees probably will never be collected because of a lack of resources. The agency decided to stop assessing late fees this year partly because it needed to establish new rules for imposing fees. Dozens of political groups and campaigns in the 2014 election failed to meet deadlines for filing their statements.
Washington – PDC Finding It Hard to Get Money to Make Upgrades to Its Campaign-Finance Web Site
Tacoma News Tribune – Brad Shannon (The Olympian) | Published: 12/26/2014
The budget for the Public Disclosure Commission is cut by two percent in Washington Gov. Jay Inslee’s proposed spending plan for 2015-17, including elimination of three employees that would leave staffing at fewer than 17 full-time equivalent positions. The agency had suggested the staffing cuts, including elimination of a vacant in-house legal counsel position. But it also wanted to invest potentially $200,000 into upgrades making it easier for candidates and lobbyists to file reports and for the public to find and understand them.
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.
December 26, 2014 •
News You Can Use Digest – December 26, 2014
National: Here’s Where Campaign Finance Reform May Move Ahead As Congress Dithers Huffington Post – Paul Blumenthal | Published: 12/21/2014 While campaign finance reform is unlikely in Congress, it is possible in some states, where extreme polarization on the issue of […]
National:
Here’s Where Campaign Finance Reform May Move Ahead As Congress Dithers
Huffington Post – Paul Blumenthal | Published: 12/21/2014
While campaign finance reform is unlikely in Congress, it is possible in some states, where extreme polarization on the issue of money in politics is less evident than in Washington, D.C. Many states and municipalities have already enacted new disclosure laws and rules governing candidates’ coordination with independent groups. Still others have pushed for small-donor matching fund systems to dilute the power of big money, or have passed conflict-of-interest restrictions on gifts from lobbyists and contractors.
Lawyers Create Big Paydays by Coaxing Attorneys General to Sue
New York Times – Eric Lipton | Published: 12/18/2014
There is a flourishing industry that pairs plaintiffs’ lawyers with state attorneys general to sue companies, a collaboration that has set off a furious competition between trial lawyers and corporate lobbyists to influence these officials. While prospecting for contracts, the private lawyers have also donated tens of thousands of dollars to campaigns of individual attorneys general, as well as party-backed organizations that they run. The donations often come in large chunks just before or after the firms sign contracts to represent the state, show campaign finance records and more than 240 contracts examined by The New York Times.
Federal:
National Parties, Donors Embrace Higher Campaign Limits
USA Today – Fredreka Schouten | Published: 12/22/2014
The national political parties and some of their biggest donors are embracing a new law that dramatically increases contribution limits, saying it could help the parties stage a financial comeback in an era of unlimited spending by super PACs. Some third-party groups on the left and the right of the political spectrum, however, are not as pleased, warning the national parties will have more power to drown out upstart politicians challenging the establishment’s favored candidates., Everyone agrees on one point: more campaign money will start to slosh through federal elections, just as the 2016 presidential campaign heats up.
Rep. Michael Grimm Pleads Guilty in Tax Case, Refuses to Resign
Los Angeles Times – Christine Mai-Duc | Published: 12/23/2014
U.S. Rep. Michael Grimm will not resign despite pleading guilty to one felony charge of filing false tax returns for a restaurant he owned, raising a challenge for Republican leaders if they seek to force him from office. He could be expelled from following a vote by the full House, but those proceedings could take weeks or even months. Grimm, a former FBI agent, was hit with 20-count indictment in April. Initially, federal investigators looked into allegations of campaign finance violations, but no charges were ever filed as part of that probe. Prosecutors accused Grimm of under-reporting his employees’ wages to the IRS, paying them in envelopes full of cash, and said he had lied under oath when he claimed he was not responsible for handling payroll.
Waning Influence? Part 3: Ups and Downs, by Industry
Center for Responsive Politics – Dan Auble | Published: 12/22/2014
Overall spending on lobbying has been on a downward trajectory since 2010 and the number of active lobbyists has seen an even longer-term and more drastic drop. The Center for Responsive Politics attempted to identify whether particular industries have contributed more than their fair share to the decrease. Lobbying spending may have dropped by 15 percent since 2009, but not all industries have cut their spending. Fifty-six industries outperformed the overall trend, and 24 actually increased spending since 2009. About 33 fell at a more drastic rate than the average, suggesting they may have contributed more to the overall decline than could be made up by those on the rise.
From the States and Municipalities:
Maine – Maine Public in the Dark on Local-Issue Lobbying
Portland Press Herald – Steve Mistler | Published: 12/22/2014
Advocates for transparency in government say the failure to require lobbying disclosures at the local level makes it hard for citizens to know who is trying to influence elected officials, at a time when well-funded national groups are pouring millions of dollars into state and local politics. No Maine community has a lobbying disclosure rule, and the only time the state imposes a reporting requirement on cities and towns is when a community with more than 15,000 residents takes up a local referendum question.
Massachusetts – Boston-to-D.C. Flights Showcase Region’s Power Players
Boston Globe – Matt Viser | Published: 12/23/2014
The hourly shuttle flights between Boston and Reagan National Airport are a vital connection between the nation’s capital and The Hub in more ways than one. The shuttle provides an airborne showcase of the region’s power players as they travel to private dinners, fundraisers, and congressional hearings. For members of Congress, it can be like office hours, where they are forced to confront constituents who happen to be seat mates. Gate agents report passengers frequently request a new seat assignment so they can be next to a person with whom they are hoping to conduct business.
North Carolina – NC Supreme Court Upholds GOP-Drawn Legislative and Congressional Districts
Raleigh News & Observer – Ann Blythe | Published: 12/19/2014
The North Carolina Supreme Court upheld the Republican-led redrawing of congressional and legislative districts in 2011. Democratic voters and others challenging the boundaries argue that 30 legislative and congressional districts were designed to weaken the overall influence of black voters in North Carolina. The challengers contend the shepherds of the redistricting packed black voters into districts where they had already been successful in electing their candidates of choice despite being in the minority. Republicans have argued they followed the law when creating districts.
Pennsylvania – Kane’s Account of Sting Draws Increasing Fire
Philadelphia Inquirer – Craig McCoy and Angela Couloumbis | Published: 12/21/2014
Pennsylvania Attorney General Kathleen Kane has said an undercover sting investigation that implicated five Philadelphia officials was marred by possible racial targeting, among many other flaws. At a news conference where Philadelphia District Attorney Seth Williams announced the arrests of two state representatives who he said took cash from a lobbyist who was working with law enforcement officials in the sting, Williams used the subpoena power of an investigative grand jury to dig into Kane’s statements on why she shuttered the sting and test them for accuracy. He ended up launching a broadside against Kane, saying she had made repeated false statements to justify her decision to end the probe, cited documents that did not exist, and irresponsibly jettisoned a strong criminal case.
Pennsylvania – Pennsylvania Lawmakers Will Be Challenged to Ban Themselves from Taking Lobbyists’ Gifts
Columbus Republic – Marc Levy (Associated Press) | Published: 12/18/2014
Sen. Lloyd Smucker said he will introduce a sweeping bill to ban nearly all gifts to public officials and employees in Pennsylvania, including state and local government employees. Such bills have been introduced before, and seen no action, and Smucker said he has no commitment to pass it by House or Senate leadership. But this measure has the added weight of testimony collected by Smucker’s State Government Committee, a pledge by Gov.-elect Tom Wolf to ban gifts to executive branch employees and officials, and a fresh corruption scandal that produced bribery charges against two lawmakers.
Pennsylvania – Who’s Minding the Store for Legislative Ethics?
Pittsburgh Post-Gazette – Joe Smydo | Published: 12/22/2014
In the past 15 years, more than a dozen legislators in Pennsylvania have been convicted of, or pleaded guilty to, crimes ranging from misusing taxpayer resources to hiding income from a second job to leaving the scene of a fatal accident. Philadelphia District Attorney Seth Williams recently announced bribery and other charges against Reps. Ronald Waters and Vanessa Lowery Brown. Policing lawmakers is a task the state Ethics Commission shares with committees in the House and Senate. Commission Executive Director Robert Caruso said his agency’s work has been challenged in recent years by staffing shortages, budget cuts, and weaknesses in the state ethics law.
Rhode Island – Mollis Concludes Former R.I. Attorney General Lynch Did Not Violate Lobbying Rules
Providence Journal – Katie Mulvaney | Published: 12/18/2014
Secretary of State A. Ralph Mollis concluded former Attorney General Patrick Lynch did not violate Rhode Island’s lobbying law in his interactions with his successor’s office about federal regulation of Internet gambling and other topics. Lynch has claimed his interactions with Attorney General Peter Kilmartin’s office were as a lawyer representing clients and, thus, he was exempt from registering as a lobbyist.
Utah – Tea Partier Braces for Primary Challenge from the Establishment
Politico – Manu Raju | Published: 12/22/2014
What is happening in Utah marks a new chapter in the tea-party-vs.-establishment wars that have defined Republican politics since 2010. At that time, U.S. Sen. Mike Lee seized on conservatives’ frustration with a veteran GOP senator, Bob Bennett, to win the party’s nomination and emerge as one of the country’s most prominent tea party senators. But after four years in Washington, where he has aligned himself with the most conservative wing of the party, some Republicans are weighing whether there is an opening to challenge Lee.
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.
December 19, 2014 •
News You Can Use Digest – December 19, 2014
National: A State Guide to Political Corruption, According to the Reporters Who Cover It Washington Post – Niraj Chokshi | Published: 12/8/2014 With Congress stuck in the least productive rut in American history, the bulk of important legislative action is taking […]
National:
A State Guide to Political Corruption, According to the Reporters Who Cover It
Washington Post – Niraj Chokshi | Published: 12/8/2014
With Congress stuck in the least productive rut in American history, the bulk of important legislative action is taking place in the states. But according to one study, all that power might not be in the best hands. Harvard University’s Edmond J. Safra Center for Ethics published a study looking at state-level corruption throughout the U.S. But instead of relying on conviction data, researchers surveyed some 280 regional reporters and asked them to grade each of the three branches of government in their state on legal and illegal corruption.
Energy Firms in Secretive Alliance with Attorneys General
New York Times – Eric Lipton | Published: 12/6/2104
An investigation by The New York Times found attorneys general in at least a dozen states are working with energy companies and other corporate interests to push back against the Obama administration’s regulatory agenda. The companies in turn are providing them with record amounts of money for their political campaigns, including at least $16 million this year. They share a common philosophy about the reach of the federal government, but the companies also have billions of dollars at stake. And the collaboration is likely to grow: for the first time in modern American history, Republicans in January will control a majority of attorneys general’s offices.
Payouts to McCrory, Sanford from Mortgage Broker Raise Ethical Questions
Charlotte Observer – Michael Biesecker and Mitch Weiss (Associated Press) | Published: 12/16/2014
Soon after taking office, North Carolina Gov. Pat McCrory and U.S. Rep. Mark Sanford accepted six-figure stock payouts from an online mortgage broker, a move that experts say raises ethical if not legal concerns. They were directors at Tree.com, the corporate parent of the website LendingTree. As board members, they were entitled to restricted company stock if they held their positions long enough. Both resigned after their election victories, which would have rendered their unvested stock worthless had the board not taken special action to provide them early payouts. McCrory and Sanford deny they did anything improper by accepting the payments from Tree.com, which were not fully described in their ethics statements.
Federal:
Every Election Is the Most Expensive Election. Or Not.
New York Times – Derek Willis | Published: 12/16/2014
Despite the efforts of the FEC, which has been faithfully disseminating campaign finance data since 1975, there are limitations in the ways that data is collected and summarized that make generating totals and comparisons very difficult. In a paper presented at the American Political Science Association conference this year, Temple University professor Robin Kolodny challenged the idea that we know each election is more expensive than previous ones, or that we even know how much campaigns really cost. Kolodny concludes this lack of knowledge fuels our perceptions of money in politics as an issue.
G.O.P. Angst Over 2016 Led to Provision on Funding
New York Times – Nicholas Confessore | Published: 12/13/2014
A campaign finance provision in the federal omnibus spending bill that will significantly raise certain contribution limits began with what Republican leaders regarded as an urgent problem: how would they pay for their presidential nominating convention in Cleveland in 2016? The talks ended with a bipartisan agreement that would allow wealthy donors to begin giving more than $1 million every election cycle to each party’s national committees.
Jeb Bush’s Decision to Explore Presidential Bid Scrambles the 2016 GOP Field
Washington Post – Matea Gold and Philip Rucker | Published: 12/16/2014
Former Florida Gov. Jeb Bush said he would “actively explore” a presidential run, immediately sending reverberations through the potential GOP field, tying up donors whom other candidates are courting, and forcing contenders to accelerate their own considerations for 2016. Bush became the first Republican to take an overt step toward a White House bid. He announced he would create a PAC, allowing him to raise money and travel the country ahead of an eventual decision.
From the States and Municipalities:
Arizona – Registration Rule for Political Groups Ruled Too Vague
Arizona Daily Sun – Howard Fischer (Capitol Media Services) | Published: 12/6/2014
A federal judge ruled an Arizona law defining a political committee is unconstitutionally vague. Deputy Secretary of State Jim Drake said at the very least, the judge’s order eliminates the requirements for disclosure of funding by groups pushing or opposing ballot measures. It is not unusual for these campaigns to cost millions of dollars. But attorney Paul Avelar of the Institute for Justice said he reads the ruling to apply to all the independent groups pushing to elect or defeat candidates. The order does not bar the state from requiring political committees to register. But legislators will have to redo the law in a fashion that courts find to be constitutional.
Arkansas – Questions Surround Constitutional Amendment on Ethics, Term Limits
Arkansas News – John Lyon (Arkansas News Bureau) | Published: 12/8/2014
Rep. Warwick Sabin and Sen. Jon Woods are aiming to end the confusion surrounding their co-authored and recently passed constitutional amendment, Issue No. 3. But the head of the Arkansas Chamber of Commerce said he expects the amendment to face multiple court challenges. The measure enacts significant ethics reforms for state legislators, such as restricting gifts, eliminating corporate campaign contributions, and extending the lobbying period for former legislators once their service is complete. The amendment also extends term limits to 16 years in either chamber of the state Legislature or a combination of both.
Georgia – State Ethics Agency Faces More Changes
Gainesville Sun – Christina Cassidy (Associated Press) | Published: 12/7/2014
It has been a tumultuous year at Georgia’s ethics commission, which has been hamstrung by a number of lawsuits filed by former employees, personnel issues, and allegations of outside influence with questions raised about its ability to ensure candidates, campaign committees, lobbyists, and others are disclosing their financial activities. Meanwhile, the agency has had 216 open complaints that have been pending an average of three years. A recent audit issued 42 recommendations that state lawmakers might consider to improve the effectiveness and independence of the commission.
Missouri – Ethics Bills Filed to Open Debate on Lobbying and Campaign Finance Rules
Columbia Daily Tribune – Rudi Keller | Published: 12/15/2014
Missouri Rep. Caleb Rowden filed a bill that would ban lobbyists’ gifts to individual lawmakers, their staff members, and families. It also would require subcontracting lobbyists hired by principal lobbyists to disclose the actual client being served. Rowden addresses campaign finance issues by requiring that legislators and statewide elected officials disclose donations greater than $500 within 48 hours during legislative sessions.
New York – After Ethics Panel’s Shutdown, Loopholes Live On in Albany
New York Times – Thomas Kaplan, William Rashbaum, and Susanne Craig | Published: 12/8/2014
Investigators for the Moreland Commission, an anti-corruption panel that New York Gov. Andrew Cuomo created last year, found a slew of questionable activity. But Cuomo abruptly shut down the commission as part of a deal with the Legislature. In Albany, some of the most questionable conduct by elected officials has long been perfectly legal, safeguarded by the only people who can outlaw it: the lawmakers themselves. Before it was disbanded, the commission urged elected officials to close loopholes, toughen criminal statutes, increase disclosure requirements, and restrict how campaign funds could be spent. Now, eight months after its work was cut short, little in Albany has changed.
Ohio – Work of FBI Squad Evident in Columbus Payday Probe
Marietta Times; Associated Press – | Published: 12/11/2014
Columbus, Ohio’s growing population and increasing sophistication as a metropolis helped drive the FBI’s decision to dedicate a public corruption unit to the city. State Rep. Dale Mallory was fined for accepting Cincinnati Bengals tickets from lobbyists, Sen.-elect Sandra Williams was fined and sentenced to a suspended six-month jail term for selling Ohio State tickets her campaign purchased to a lobbyist and pocketing the proceeds. Two more state lawmakers, then- Reps. W. Carlton Weddington and Clayton Luckie, received prison time in the long-running investigation of payday-lending lobbyists. Two lobbyists also were convicted.
Pennsylvania – Two Philadelphia Lawmakers Charged in Sting Probe
Philadelphia Inquirer – Craig McCoy and Angela Couloumbis | Published: 12/16/2014
In a case that Pennsylvania Attorney General Kathleen Kane said was “not prosecutable,” the Philadelphia district attorney’s office announced felony corruption charges against two state legislators accused of accepting cash from an undercover lobbyist who videotaped the exchanges. Reps. Ronald Waters and Vanessa Brown are charged with criminal conspiracy, bribery, conflict-of-interest, and failure to report on their financial interest disclosure forms – all stemming from allegedly accepting money in exchange for promised political actions. Kane dismissed the case in 2013, citing legal flaws, poor supervision, and a taint of racism to the investigation. District Attorney Seth Williams then took up the inquiry.
Rhode Island – Mollis Adopts Hearing Officer’s Decision that Corso Engaged in Unregistered Lobbying Related to 38 Studios
Providence Journal – Jennifer Bogdon | Published: 12/5/2014
Rhode island Secretary of State A. Ralph Mollis has adopted the decision by a hearing officer that attorney Michael Corso engaged in unregistered lobbying relating to 38 Studios. Corso, whose friendship with former House Speaker Gordon Fox helped bring the now bankrupt video-game company to the state, will face a $2,000 fine if he does not file the required reports. Mollis convened the administrative hearing process after media stories shed light on Corso’s role in advocating for $75 million in state-backed loan guarantees in a jobs-creation bill. The funding eventually went to 38 Studios.
Wisconsin – Republicans Seize on Audit Critical of State Elections Board
Milwaukee Journal Sentinel – Patrick Marley | Published: 12/12/2014
An audit critical of the nonpartisan board that oversees ethics and elections in Wisconsin fueled calls for change from Republicans who control the Legislature. The long-awaited report detailed a number of problems with the Government Accountability Board, which began in 2008. The audit said board staff did not consistently follow a penalty schedule for enforcing campaign finance, lobbying, and code of ethics laws; did not conduct 16 required reviews over a four-year period to identify felons who may have voted illegally; and did not put in place written procedures for considering complaints.
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.
December 5, 2014 •
News You Can Use Digest – December 5, 2014
National: An Upbeat End to a Turbulent Year for Conservative State Legislature Group Washington Post – Tom Hamburger | Published: 12/3/2014 Early in 2014, ALEC lost some of its most esteemed corporate partners – including Google, Microsoft, Yahoo, and Facebook – […]
National:
An Upbeat End to a Turbulent Year for Conservative State Legislature Group
Washington Post – Tom Hamburger | Published: 12/3/2014
Early in 2014, ALEC lost some of its most esteemed corporate partners – including Google, Microsoft, Yahoo, and Facebook – who decided not to renew their memberships following complaints that the organization questioned climate science. But then came Election Day in November, which delivered massive gains for state lawmakers backed by the group and left a record number of state legislative chambers in Republican hands. Thus ALEC is ending the year with upticks in the number of corporate members and in interest from legislators.
How Do Countries Rank on Corruption?
Los Angeles Times – Alexandra Zavis | Published: 12/2/2014
A report from Transparency International shows how levels of corruption vary around the world. The group ranked 175 countries on factors such as the prevalence of bribery, how countries prosecute corruption, and how governments respond to their population’s needs, such as guaranteeing basic human rights. North American and European countries were relatively less corrupt than countries in South America, Central Africa, and Asia. Somalia and North Korea ranked as the most corrupt countries in the world. Denmark and New Zealand were the least corrupt. The U.S. came in 17th place.
Federal:
15 Places in DC Where Lobbyists Talk Turkey
The Hill – Megan Wilson | Published: 11/28/2014
There are more than 11,000 lobbyists in Washington, D.C. and an ever-growing assortment of places for wining and dining, from the smoke-filled rooms for which the city is famous to trendy cocktail lounges and four-star restaurants. There are some venues, however, that have emerged as staples for K Street business. While each of the roughly two-dozen lobbyists that responded to The Hill’s inquiry for their favorite places to dine, drink, and do business, Washington boasts 15 places where lobbyists are almost definitely expected to be found.
Federal Judge Tosses out FEC Donor Disclosure Rule, Calling it Too Narrow
Washington Post – Matea Gold | Published: 11/25/2014
A federal judge again tossed out an FEC rule that allowed nonprofit organizations running so-called issue ads to keep their donors secret, in a setback for groups such as the U.S. Chamber of Commerce and Crossroads GPS. U.S. District Court Judge Amy Berman Jackson said the rule is “arbitrary, capricious, and contrary to law.” The case hinges on a 2007-era regulation stating organizations that run issue ads close to Election Day only have to reveal donors who give for the explicit purpose of financing those spots. Under the rule, few groups running such ads have reported their contributors.
Know Before You Go: An ethics overview for Capitol Hill holiday parties
Roll Call – Kate Ackley | Published: 12/1/2014
The same congressional ethics regulations that ban lobbyists from treating lawmakers and staff to most lunches, dinners, or other gifts also govern the December social circuit in Washington. The “reception exemption” is the top carve out to the rules that most K Street party planners employ. “If it looks like a reception, then it’s OK; members and staff are allowed to attend a reception that’s purely social and a holiday celebration,” said William Minor, a lawyer at DLA Piper who specializes in ethics and lobbying laws. But beware anything that looks like a meal, or even opulent tiny bites such as caviar or truffles.
From the States and Municipalities:
California – L.A. Voters Won’t Be Offered Cash Prizes in March City Election
Los Angeles Times – David Zahniser | Published: 12/2/2014
The idea of luring Los Angeles voters to the polls with cash prizes will not be used during next year’s March or May elections. The city Ethics Commission had suggested holding a lottery to improve voter turnout, which was 23 percent for last year’s mayoral run-off. Voters would be eligible for prizes of $25,000 or $50,000. Opponents said that was bribery and would do little to make sure voters were well-informed on issues and candidates.
Florida – Former Attorney General’s Contact with Pam Bondi’s Office Raises Questions
Miami Herald – Michael Van Sickler (Tampa Bay Times) | Published: 12/1/2014
Bill McCollum is not just Pam Bondi’s predecessor as Florida attorney general; he also leads the Republican State Leadership Committee, which has championed Bondi’s advancement. During the 19 months that McCollum served as vice chairperson of the group, it contributed $650,000 to Bondi’s re-election campaign, more than 10 percent of what she raised, and chipped in another $16,000 in gifts so she could attend conferences with other Republican attorneys general. Now specializing in public policy and regulation at Dentons, an international law firm, McCollum contacted Bondi’s office on behalf of his clients, but did not register himself or list his clients with the state, which is a requirement for anyone who lobbies the executive branch.
Maryland – New Maryland Rules Would Curb Some Uses of Campaign Funds
Baltimore Sun – Michael Dresser | Published: 11/29/2014
New rules proposed by the State Board of Elections would bar candidates in Maryland from using their campaign funds to pay for such things as foreign travel, tuition, or mounting a legal defense to charges unrelated to the campaign. In addition to the prohibition on some uses of campaign funds, the board is proposing explicit rules on what actions violate the state’s longtime ban on legislators and statewide elected officials raising money during the legislative session. Among the practices banned is one in which officials send out a notice during the 90-day session to “save the date,” code in political circles for announcing a fundraiser.
Missouri – Missouri Lawmakers Face Renewed Calls to Change Loose Ethics Laws
Kansas City Star – Jason Hancock | Published: 11/26/2014
Some Missouri lawmakers say support is building to tighten state ethics laws that are among the loosest in the nation, but they warn that any reform probably would not include campaign contribution limits. The state allows legislators to accept unlimited gifts from lobbyists, collect political donations of any size, and lets lawmakers become lobbyists the moment they leave office. For years, some lawmakers have sought to change that, and each time those efforts have run into a wall of legislative opposition. Some think the 2015 legislative session could be different, with several longtime opponents of ethics reform out of office and legislative leaders voicing support for tackling the issue.
North Carolina – Redrawn Political Lines Create Sparse Choice for Voters
Ashville Citizen-Times – Mark Barrett | Published: 12/2/2014
Results of this year’s general election have once again fueled concerns about North Carolina’s redistricting process, one in which the General Assembly draws lines for U.S. House and legislative districts once a decade. Exactly half of all 120 state Houses races in November featured only one candidate. In the Senate, 19 of 50 races had just the one candidate. Only 30 to 40 of the remaining seats in the two chambers were truly “in play,” meaning either candidate had a realistic chance of winning, according to experts. Critics say the lack of competition means officeholders cater to the extreme wings of their parties, the party in power gets a disproportionate share of the seats, and voters are less likely to take an interest in public affairs.
Virginia – Ethics Commission Recommends More Caps on Free Meals, Trips for Virginia Lawmakers
The Tribune – Alan Suderman (Associated Press) | Published: 12/1/2014
A panel examining Virginia’s ethics laws recommending that state lawmakers not be able accept meals, trips, and entertainment worth more than $250 from lobbyists and others. The Commission on Integrity and Public Confidence in State Government included the recommendation in an interim report submitted to Gov. Terry McAuliffe. The commission had outlined its recommendations at a meeting in November, but now it has formally presented them to McAuliffe. The governor is expected to use the report to form the basis of ethics legislation he will propose for the General Assembly session that begins in January.
Washington – Ethics Panel Eyes Lawmakers’ Meals
The Columbian; Staff – | Published: 12/2/2014
The Legislative Ethics Board has limited the number of free meals that Washington lawmakers could accept to 12 meals a year, and legislators currently have to report meals costing more than $50. At a recent meeting, the board approved a motion requesting that lawmakers publicly report free meals, no matter the dollar value. The Legislature must approve the reporting requirement.
West Virginia – Report Suggests Davis Conflict in Nursing Home Case
Charleston Gazette – Kate White | Published: 12/2/2014
An ABC News report said an attorney helped raise thousands of dollars for West Virginia Supreme Court Justice Robin Davis’ 2012 re-election campaign and later purchased a private jet from Davis’ husband for more than $1 million. The attorney, Michael Fuller, would later argue a high-profile nursing home case in front of Davis. Although the justices reduced a $90 million verdict against a nursing home to about $40 million, Fuller’s law firm received more than $17 million. Davis has said she is against changing the rules justices use to determine whether they should step down from certain 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.
November 26, 2014 •
News You Can Use Digest – November 26, 2014
National: Governors and Oil Industry Work Hand in Hand in Offshore Drilling Group Center for Public Integrity – Nicholas Kusnitz | Published: 11/24/2014 For the past three years, a group of eight, mostly Republican governors from coastal states has been lobbying […]
National:
Governors and Oil Industry Work Hand in Hand in Offshore Drilling Group
Center for Public Integrity – Nicholas Kusnitz | Published: 11/24/2014
For the past three years, a group of eight, mostly Republican governors from coastal states has been lobbying the Obama administration to expand access to the nation’s offshore oil and gas deposits, working through an organization called the Outer Continental Shelf Governors Coalition. A review public documents obtained by the Center for Public Integrity shows much of the coalition’s work has been carried out by HBW Resources and the Consumer Energy Alliance, a group that has channeled millions of dollars in corporate funding to become a leading advocate at the state level for drilling.
Unions Rethink Strategy after Election Losses
Governing – Alan Greenblatt | Published: 11/21/2014
Some union officials want to rethink the labor movement’s approach to politics in the wake of the midterm elections. Having long tied their fortunes to Democrats, at least some union leaders are thinking about returning to the basics of providing professional services to members and emphasizing issues, rather than candidates. “Unions have to be aggressively pushing for the issues we really believe in,” said Gabe Morgan, a Service Employees International Union director in Pennsylvania, referring to the success of minimum wage increases on several state ballots.
Federal:
Meet the New Super Donors
Campaigns & Elections – Kevin Bogardus | Published: 11/24/2014
Lobbyists and other donors can give to as many candidates and groups as they want with no aggregate cap in place as a result of the U.S. Supreme Court’s McCutcheon ruling. The Center for Responsive Politics has found this campaign season that roughly 20 K federal lobbyists have exceeded the now vanquished limit with their political donations for the 2014 elections. Yet lobbyists only make up a portion of this new class of super donor. It has found nearly 500 contributors overall who have passed the old limit, donating $83.7 million to candidates and political committees, about $22.5 million over what they could give under the previous cap.
Some in G.O.P. Fear That Their Hard-Liners Will Alienate Latino Voters
New York Times – Jackie Calmes | Published: 11/21/2014
Some Republicans say their party faces a challenge in framing their opposition to President Barack Obama’s executive action on immigration in a way that does not antagonize Latinos and other minority groups like Asian-Americans, much as Republicans lost African-Americans’ support in the civil-rights era. Many GOP candidates who won in the midterm elections took stands against “amnesty” for those here illegally with little fear of political penalty because few close contests were in places with significant Latino populations.
Survey Says: Constituents lobby best
The Hill – Vickie Needham | Published: 11/20/2014
The Congressional Management Foundation, in a three-year survey of Capitol Hill staffers, found constituent visits to the Washington office (97 percent) and to the district office (94 percent) have “some” or “a lot” of influence on undecided lawmakers, more than any other strategy. The group is releasing a research-based guide for individuals and groups on how to schedule, conduct, and follow-up on meetings with lawmakers. The report explores issues such as the best time to request a meeting, what to discuss, and what are the preferred locations.
From the States and Municipalities:
Alaska – Bill Walker, Next Governor for Alaska, Traversed Unlikely Path
New York Times – Kirk Johnson | Published: 11/24/2014
Earlier this year, Bill Walker was running for governor of Alaska as an independent candidate with no party, little money, and almost no chance of victory two months before Election Day. Incumbent Gov. Sean Parnell, a Republican in a right-leaning state, was facing two opponents on the ballot – Walker and Democrat Byron Mallott – who would most likely split the state’s moderates and liberals. Mallott concluded neither he nor Walker had any hope of winning alone, but together they might have a chance. Mallott forfeited the Democratic Party nomination for governor and joined forces with Walker on the independent ballot line as the lieutenant governor candidate. Walker won the election by about 6,200 votes out of 285,000 cast, one of the closest gubernatorial elections in state history.
Arizona – Horne Pays $10,000 Settlement in Campaign-Violations Case
Arizona Republic – Julia Shumway | Published: 11/20/2014
The Citizens Clean Elections Commission (CCEC) approved a settlement with Attorney General Tom Horne over allegations he used his office staff to work on his failed re-election campaign. Horne did not admit guilt by agreeing to the settlement, but personally paid a $10,000 fine. CCEC Executive Director Thomas Collins said Horne used more than $300,000 worth of state employee time and rent in his unsuccessful race. That amount was not reported on his campaign finance forms.
Connecticut – Lawmakers Look to Close ‘Kennedy Loophole’
The News-Times – Neil Vigdor | Published: 11/20/2014
When Connecticut lawmakers reconvene for the new legislative session in January, the General Assembly is expected to discuss new limits on how much state parties can contribute to individual candidates. The push comes after Ted Kennedy, Jr. received $207,000 in aid from the Democratic State Central Committee for his victorious state Senate campaign, despite being bound by spending limits as a taxpayer-funded candidate.
District of Columbia – Marion Barry, Washington’s ‘Mayor for Life,’ Even After Prison, Dies at 78
New York Times – David Stout | Published: 11/23/2014
Former District of Columbia Mayor Marion Barry, who overcame an embarrassing public drug arrest while in office to return as mayor and city council member, died on November 23 at the age of 78. On January 18, 1990, Mayor Barry was arrested in a Washington hotel room while smoking crack cocaine. The arrest, videotaped in an undercover operation, caused a sensation. While his arrest and his public declaration that he had been set up defined Barry for the nation, his role in the city as the pre-eminent political leader and champion of the underclass continued to thrive. The former civil rights activist remained beloved as an advocate of what he called the “last, the least, and the lost” and of the city’s continuing struggle for self-determination.
New York – Text Me the Money: New form of donations coming to city campaign finance program
Gotham Gazette – Kristen Meriwether | Published: 11/24/2014
The New York City Campaign Finance Board is expected to pass new rules that will govern how campaigns accept contributions via text message. A 2013 law allows candidates running for local offices to accept contributions through what is typically a cell-phone-based format. If a text-message donor is a New York City resident, the given funds will be eligible for public matching dollars. The proposed rules will limit text message contributions to $99. There was no objection to the donation limit at a recent hearing, but there was discussion about the rules regarding the timing of texted contributions.
Rhode Island – Rhode Island Investigating Former State Attorney General
New York Times – Eric Lipton | Published: 11/21/2014
The Rhode Island secretary of state’s office said it has asked ex-state Attorney General Patrick Lynch for more information about his interactions with his former office in an attempt to determine whether he should have registered as a lobbyist. Lynch has told the Associated Press he was not lobbying and had complied with all laws. The investigation of comes in response to an article in The New York Times that examined the surge in lobbying of state attorneys general across the country, much of it by former officials like Lynch.
Virginia – Va. State Senators Propose No Gifts More Than $100 for Officials
WUSA; Staff – | Published: 11/24/2014
Two Virginia senators have written a bill that would eliminate gifts of more than $100 for officials or employees of state government agencies. The bill would also require review of any intangible gifts, including compensated travel or event ticket, by the Conflicts of Interest and Ethics Advisory Council.
Washington – Washington’s Lobbying Corps Populated By Former Lawmakers, Staffers
KUOW – Austin Jenkins | Published: 11/19/2014
Unlike 32 other states, Washington does not require a waiting period to slow the “revolving door” from state service to lobbying. The New York Times recently reported that former Washington Attorney General Rob McKenna was lobbying his former office less than a year after he left his position. There are 960 registered lobbyists and lobbying firms in Washington state; among them are several former government insiders such as lawmakers, agency directors, and key staffers. Rep. Reuven Carlyle announced his intention to introduce legislation in January to require a waiting period.
Wisconsin – John Doe Froze Conservative Speech, Targets Say
Wisconsin Reporter – M.D. Kittle | Published: 11/23/2014
Targets of Milwaukee County District Attorney’s John Chisholm’s investigation of Wisconsin conservatives say the probe effectively chilled conservative donors and volunteers during the midterm elections. “We spent, but we didn’t spend like we did in the last couple of cycles, and I believe a good part of that was related to the John Doe investigation,’ said one source, whose organization has been targeted in the politically charged inquiry.
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.
November 21, 2014 •
News You Can Use Digest – November 21, 2014
National: A Citizen’s Guide to Buying Political Access New York Times – Tara Siegel Bernard | Published: 11/18/2014 A recent study provides some confirmation of what many voters have long assumed: campaign donations buy access to politicians. Precisely how much money […]
National:
A Citizen’s Guide to Buying Political Access
New York Times – Tara Siegel Bernard | Published: 11/18/2014
A recent study provides some confirmation of what many voters have long assumed: campaign donations buy access to politicians. Precisely how much money it takes to gain access is up for debate, and it will vary across offices, but even politicians themselves have admitted big donors get special treatment. As long as there is not an exchange of money for favors, the potential influence of large donors has been deemed acceptable by the U.S. Supreme Court, which in recent decisions relaxed rules on financing campaigns. At the state level, research has found money is more influential in some Legislatures than in others, and what is considered a meaningful donation will also differ.
Federal:
How the GOP Used Twitter to Stretch Election Laws
CNN – Chris Moody | Published: 11/15/2014
The National Republican Congressional Committee and a pair of GOP-aligned outside groups, the American Action Network and American Crossroads, used anonymous Twitter accounts to share polling information ahead of the 2014 elections, according CNN. That allowed them to skirt rules banning private sharing of information between outside groups and the national parties, rules that have been increasingly circumvented as campaign finance laws have crumbled in the wake of the U.S. Supreme Court’s Citizens United decision. There are still rules preventing direct coordination but campaigns and committees often publicly post information, messaging, and video footage in order to let super PACs and other outside groups use the information.
New Senators Tilt G.O.P. Back toward Insiders
New York Times – Jeremy Peters | Published: 11/15/2014
When Republicans take over the U.S. Senate in January, the 11 men and women of the party’s freshman class will be, with a lone exception, people whose careers blossomed inside the government bureaucracy. They are a counterintuitive fit with the anti-government, anti-establishment fervor that has energized the GOP of late. And their victories seem hard to reconcile with the strong hostility toward government institutions that dominated the recent midterm elections.
Top Spenders on Capitol Hill Pay Billions, Receive Trillions
Sunlight Foundation – Bill Allison and Sarah Harkins | Published: 11/17/2014
The Sunlight Foundation has devised a new way to gauge how much power corporations wield in Washington, D.C. The foundation took the 200 corporations most active in the capital, analyzed the years 2007 to 2012, and applied several metrics: what the companies got in federal contracts and other federal support, what they spent on lobbying, and how much their executives and PACs gave in campaign contributions. Bill Allison, the foundation’s editorial director, said the top 200 corporations accounted for nearly $6 billion in lobbying and campaign contributions; those same companies benefited from more than $4 trillion in federal contracts and assistance.
From the States and Municipalities:
Idaho – Lawyer-Lobbyists Influence Idaho Law
Idaho Statesman – Audrey Dutton | Published: 11/19/2014
Roy Eiguren, a 62-year-old Boise attorney and lobbyist, remembers a day in 2004 when Idaho lawmakers in a special session started at 8:30 a.m. and had an electric-utilities bill on the governor’s desk by 4 p.m. Eiguren was the primary draftsman on the bill. “… It was, I think, a great example where a lawyer who is a lobbyist can play a very significant role,” said Eiguren. He and other lawyers say they happened into lobbying and have witnessed a transformation in Idaho politics and Capitol culture.
Maine – Maine Ethics Commission Wants More Money to Shed Light on Campaign Spending, Lobbying
Lewiston Sun Journal – Mario Moretto (Bangor Daily News) | Published: 11/19/2014
The Maine Commission on Governmental Ethics and Election Practices is looking for additional funding to increase transparency on the financing of campaigns and lobbying. The request would divert all of the revenue from lobbyist registration fees to the commission. The agency currently receives half of all lobbying fees, and the other half goes to the state’s General Fund. “… The commission staff would like to propose that our agency receive the entire fee and use the increased revenue for [information technology] expenses to better disclose lobbying and campaign finance information to the public,” said Executive Director Jonathan Wayne.
Massachusetts – Baker Limits Corporate, Lobbyist Gifts to Inauguration Committee
Boston Globe – David Scharfenberg | Published: 11/19/2014
Massachusetts Gov.-elect Charles Baker set a $25,000 limit on corporate contributions and a $250 cap on lobbyist gifts to his inauguration committee. Donations to inaugural committees are closely watched. Gov. Deval Patrick collected donations of up to $50,000 in the run up to his first inauguration in 2007, a five-day $1 million celebration. Boston Mayor Martin Walsh solicited gifts of up to $25,000 before his swearing-in.
Michigan – Which Lobbyists Interact with Your Lawmakers?
Lansing State Journal – Justin Hinkley | Published: 11/15/2014
Critics say two decades of term limits have drained institutional knowledge from the Michigan Legislature. In response, lobbyists in Lansing have launched a series of forums to train their peers on best practices for the industry as watchdogs call for more transparency. A movement also is afoot to change term limits in the state, though that is not specifically related to lobbying. “People aren’t always up to speed on the rules, the unwritten ones and the written ones, and because of that, there’s the potential for sloppiness,” said Rob Fowler, chief executive officer of the Small Business Association of Michigan.”
Mississippi – Federal Panel Upholds Mississippi Campaign Finance Law
Biloxi Sun Herald; Associated Press – | Published: 11/14/2014
A federal appeals panel upheld the constitutionality of a Mississippi campaign finance law that requires reporting by people or groups that spend at least $200 to support or oppose a ballot initiative. The three-judge panel of the Fifth U.S. Circuit Court of Appeals reversed a 2013 decision by U.S. District Court Judge Sharion Aycock, who found the $200 reporting threshold too burdensome for smaller groups. The appeals panel said Mississippi’s reporting requirements are similar to those of other states.
Missouri – Missouri Attorney General Puts Limit on Contributions
New York Times – Eric Lipton | Published: 11/19/2014
To repair his reputation, Missouri Attorney Chris Koster has announced self-imposed guidelines on what campaign donations he will accept as he runs his office while also running for governor in 2016. He has been hurt by reports that his office may have given preferential treatment to campaign donors and lobbyists. Under Koster’s new policy, he will no longer accept donations from individuals or companies that are the subject of an ongoing investigation or one that has been resolved in the prior three months, nor will he accept contributions from any lobbyists, attorneys, or law firms who represent them. He also announced he would no longer take gifts of any value from registered lobbyists.
Rhode Island – Patrick Lynch Lobbied Rhode Island Attorney General’s Office for Years but Never Registered
The Daily Journal – Michelle Smith (Associated Press) | Published: 11/17/2014
Since his tenure as Rhode Island’s attorney general ended, Patrick Lynch has lobbied his former office several times, but he has never registered with the state as a lobbyist. Lynch denies his communications constitute lobbying. But in emails sent by him and his assistant, Lynch pushed for actions on topics including online gambling and concerns about business practices by Google. Under state law, lobbying is defined as seeking to promote, oppose, or influence decisions or actions by the executive branch, including decisions by the attorney general’s office. Lobbyists are required to register annually with the secretary of state’s office and file twice-yearly reports.
Virginia – McAuliffe’s Ethics Panel Recommends Changes on Gift, Disclosure, Conflict Rules
Richmond Times-Dispatch – Jim Nolan | Published: 11/14/2014
Virginia Gov. Terry McAuliffe’s government integrity commission agreed to preliminary recommendations that would limit the value of gifts lawmakers could receive but would also weaken disclosure rules. The commission proposed a ban on gifts exceeding $250, with the exception of trips cleared in advance by an independent board with the authority to investigate malfeasance and impose fines. Although lawmakers currently have to disclose gifts worth more than $50, under the commission’s proposal, that threshold would increase to $100. The commission must deliver its full recommendations to McAuliffe by December 1.
West Virginia – Ethics Commission Hires Stepto as Director
Charleston Gazette – Phil Kabler | Published: 11/13/2014
The interim executive director of the West Virginia Ethics Commission has been given the job permanently. Rebecca Stepto was chosen from among 15 applicants. Stepto became interim executive director after the commission fired Joan Parker without explanation.
Wisconsin – Did Senators’ Sendoff Violate Wisconsin Lobbying Law?
Wisconsin Reporter – M.D. Kittle | Published: 11/19/2014
The farewell reception for retiring Wisconsin Sens. Tim Cullen, Bob Jauch, and Dale Schultz was attended by a slew of prominent politicians, along with many lobbyists. The fact that the lobbyists paid the $10 entry fee appears to be a violation of state law. The statute says “no candidate for an elective state office, elective state official, agency official, or legislative employee of the state may solicit or accept anything of pecuniary value from a lobbyist or principal.” There are exceptions to the rules, but they do not appear to apply in this case.
Wyoming – Lawmakers Punt on Campaign Disclosure Bill
Wyoming Tribune-Eagle – Trevor Brown | Published: 11/15/2014
A legislative panel has tabled a proposed bill that would tighten Wyoming’s campaign contribution laws. The proposal sought to force groups who attack or support candidates to disclose their donors. The current law says independent expenditures need to be reported to the state if it “expressly” advocates for the election or defeat of a candidate. The proposed bill said these groups would need to disclose their donors if they “directly or indirectly” advocated for the election or defeat of a candidate. But this caused worries by some that this definition would be overly broad.
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.
November 14, 2014 •
News You Can Use Digest – November 14, 2014
National: Democrats Create an ALEC-Killer Politico – Kenneth Vogel | Published: 11/9/2014 Liberal activists at the annual winter meeting of the Democracy Alliance will ask top donors to support a plan to reverse the Democratic decline in state governments. […]
National:
Democrats Create an ALEC-Killer
Politico – Kenneth Vogel | Published: 11/9/2014
Liberal activists at the annual winter meeting of the Democracy Alliance will ask top donors to support a plan to reverse the Democratic decline in state governments. The goal of the State Innovation Exchange – SiX for short – is to compete with a well-financed network of conservative groups, including the American Legislative Exchange Council, that for years have dominated state policy battles, advancing pro-business, anti-regulation bills. SiX ultimately plans to raise as much as $10 million a year to boost progressive state lawmakers and their causes while also using tactics like opposition research and video tracking to derail Republicans and their initiatives.
Federal:
Mitch McConnell’s Triumph Strikes Worry in the Hearts of Campaign Finance Reformers
Huffington Post – Paul Blumenthal | Published: 11/8/2014
The U.S. Senate will likely be led next year by Mitch McConnell, the primary antagonist to campaign finance reformers. Over three decades, he has made it a top priority to disrupt and degrade campaign finance regulations. Believing that limits on campaign funds are a direct impediment to the First Amendment right of free speech, he has opposed past reform efforts. With McConnell’s ascendance and with Republicans increasingly unified in opposition to campaign finance reform, its advocates expect an assault on the few areas where they had hoped to enact new rules in the post-Citizens United world.
Outside Groups with Deep Pockets Lift G.O.P.
New York Times – Nicholas Confessore | Published: 11/5/2014
The midterm election was not only a major victory for the Republican Party, but a pivotal moment for the super PACs and political nonprofit groups that helped the party defeat Democrats across the country. Over the last year and a half, the conservative outside groups retooled and revamped, using lessons in how to exploit voter data, opposition research, and advertising learned from their less moneyed but more effective Democratic counterparts during 2012. As federal courts opened new avenues of influence for the wealthy and lenient enforcement effectively neutered what few legal and regulatory restraints remained on big-money politics, they took advantage of every available tool.
From the States and Municipalities:
Arizona – Ducey Seeking Donations to Gubernatorial Transition Effort
Arizona Daily Star – Howard Fischer (Capitol Media Services) | Published: 11/13/2014
Arizona Gov.-elect Doug Ducey is asking for private contributions to fund his transition team. That is in addition to the donors he will be looking to tap to pay for the ceremonial parts of his inauguration. Spokesperson Daniel Scarpinato said Ducey has placed a $15,000 limit on money from any one source, at least for the transition fund. Scarpinato said there will be no limits on how much anyone can give to the separate fund to pay for the formal inaugural and any parties that might be planned for afterward.
California – California Legislators Flying to Maui to Meet with Special Interests
Los Angeles Times – Patrick McGreevy | Published: 11/12/2014
Two dozen California lawmakers will travel to Hawaii for conferences subsidized and attended by interests that lobby the Legislature, such as oil companies, public employee unions, drug and tobacco firms, and others. Conference organizers said the events, on the island of Maui, provide a relaxed setting in which elected officials and issue experts can discuss solutions to some of the state’s most vexing problems. Watchdogs say it is wrong for corporate executives to pick up the tab so they can meet with lawmakers out of public view just before the next legislative session begins. Sarah Swanbeck of Common Cause said the timing of this year’s event is especially poor because several state senators were hit with criminal charges this year, two of them involving allegations of corruption.
California – Prison Guard Union Failed to Report $24,603 in Gifts to Lawmakers
Los Angeles Times – Patrick McGreevy | Published: 11/11/2014
The state prison officers’ union agreed to a $5,500 fine for failing to disclose gifts it gave to California lawmakers from 2009 to 2011 and a corresponding failure to give gift notifications to the recipients. The gifts include lodging, meals, wine, and spa bags for legislators at the annual Governor’s Cup Foundation golf tournament in Pebble Beach. The California Correctional Peace Officers Association said the failure to report $24,603 in gifts was inadvertent.
California – Sacramento Political Consultant Richie Ross Agrees to Pay Lobbying Fines
Sacramento Bee – Laural Rosenhall | Published: 11/10/2014
Lobbyist Richie Ross agreed to pay $5,000 in fines to the Fair Political Practices Commission for not collecting campaign consulting fees from two lawmakers, thus improperly putting them under the personal obligation to a lobbyist. Ross, who agreed to write off the debt owed by the legislators, is one of a few individuals who serve in dual roles as lobbyist and campaign consultant in California. While state law allows a person to hold both positions, Ross ran into trouble because of his practice of carrying debt for successful candidates who agreed to pay him a “win bonus.”
Connecticut – Election Highlights Flaws In Campaign Finance System
CTNewsJunkie.com – Christine Stuart and Hugh McQuaid | Published: 11/10/2014
On one hand, 2014 was a banner year for Connecticut’s public campaign finance system. Both candidates for governor, all the candidates for constitutional office, and more than 80 percent of the candidates for General Assembly seats participated. On the other hand, outside groups spent $15.9 million on the governor’s race, outpacing the $13 million the two candidates received from the clean election program. The public financing program has been on the books since 2005, but the midterm election was the first test of the law as it was reshaped by the state Legislature last year.
Florida – Link Shows How Lobby Firm Cultivates Influence
New York Times – Eric Lipton | Published: 11/9/2014
Florida Attorney General Pam Bondi invited Lori Kalani, a lobbyist and lawyer from Dickstein Shapiro, to stay at Bondi’s Tampa home while Kalani recovered from surgery. Dickstein Shapiro, a Washington, D.C.-based firm that specializes in building personal relationships with state attorneys general to help corporate clients avoid becoming targets of investigation, paid for Bondi’s travel to a resort island in Michigan in 2013. The Florida Commission on Ethics is reviewing a complaint asking it to investigate whether Dickstein Shapiro violated state law by not registering as a lobbying firm.
Georgia – Audit Reveals Systemic Problems at Ethics Commission
Gainesville Times – Joshua Silavent | Published: 11/6/2014
A review of the operations of the Georgia ethics commission by state auditors found inconsistent treatment of complaints, lack of formal procedures that results in unequal application of the law, and questionable expenditures. The report lists management problems, such as underqualified staff, poor documentation, and inadequate data controls. The commission requested the review in hopes of ending a string of scandals stemming from agency operations, according to Chairperson Hillary Stringfellow. There have been four executive secretaries heading the commission staff since 2006 and a 46 percent employee turnover rate in the last two years.
Louisiana – Feds Investigating Arson Attack on Political Operative’s Uptown Home
New Orleans Times-Picayune – Ken Daley | Published: 11/8/2014
The home and two cars of a campaign finance director for a pro-solar energy candidate running for the Louisiana Public Service Commission were firebombed on November 6. No one was injured in the explosions, and authorities have yet to establish a direct link between the apparent attacks and the campaign’s efforts to promote solar energy. The finance director targeted, Mario Zervigon, is a well-known political operative in the state. Zervignon worked for Forest Bradley-Wright, who is campaigning on a program that allows solar-panel users to continue to sell their excess electricity to utility companies. He is facing incumbent Eric Skrmetta in the December 6 run-off election.
Louisiana – Louisiana Politicians Spent Lavishly on Meals, Golfing, Gifts, Other Perks in 2013
New Orleans Times-Picayune – Lee Zurdik (WVUE) and Manuel Torres | Published: 11/6/2014
Records show Louisiana politicians spent millions of dollars in 2013 on meals, golf rounds and club dues; gifts to unnamed recipients; tickets to Louisiana State University and New Orleans Saints football games; and other events. State law prohibits using campaign money for personal expenses, according to the Board of Ethics, but allows expenses “related to a political campaign or the holding of a public office or party position.” Lawmakers last year failed to clearly define what that means, despite calls by watchdogs and the ethics board for stricter rules.
Mississippi – Christopher Epps, Former Chief of Prisons in Mississippi, Is Arraigned
New York Times – Timothy Williams | Published: 11/6/2014
Mississippi’s former prisons chief pleaded not guilty to federal charges that he accepted cash and mortgage payments in exchange for awarding prison contracts to companies tied to a local businessperson. Christopher Epps, who resigned as commissioner of the Mississippi Department of Corrections on November 5, was indicted on charges he and co-defendant Cecil McCrory were involved in a kickback scheme that started in 2007 and continued for seven years.
Nevada – With a $10,000 Cap on Political Contributions, How Did Caesars Give Gov. Brian Sandoval $215,000?
Las Vegas Sun – Conor Shine | Published: 11/12/2014
In more than a dozen cases, one company or person used multiple companies to donate to a single candidate in excess of Nevada’s standard limit, according to a Las Vegas Sun analysis. The practice stems from the way the law is written. Political contributions are capped at $10,000 per donor, whether it is an individual or a business. But for businesses that operate subsidiaries, each subsidiary or affiliate is eligible to make a $10,000 contribution, even if they are all controlled by the same person or group of people. The result is a gap in the law that allows mostly large companies in Nevada’s gaming, mining, and taxi industries to direct tens of thousands of dollars to their preferred candidates.
Pennsylvania – Sending Signals: Gov.-elect Tom Wolf bans gifts, limits no-bid legal work
Philadelphia Inquirer – Tom Fitzgerald and Amy Worden | Published: 11/12/2014
A code of conduct for Pennsylvania Gov.-elect Tom Wolf’s transition team foreshadows something he plans to impose on his first day on office: a gift ban on his appointees and executive branch employees. Wolf plans to sign an executive order to prohibit gifts, even though state law allows officials to accept gifts worth up to $250 without reporting them, or gifts worth more than that amount if disclosed. Wolf also said he would curb the practice of giving no-bid contracts to private law firms when he takes office.
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.
November 7, 2014 •
News You Can Use Digest – November 7, 2014
National: Cell Phones, Social Media and Campaign 2014 Pew Research Center – Aaron Smith | Published: 11/3/2014 The Pew Research Center found social media platforms and cell phones are playing an increasingly prominent role in how voters get political information and […]
National:
Cell Phones, Social Media and Campaign 2014
Pew Research Center – Aaron Smith | Published: 11/3/2014
The Pew Research Center found social media platforms and cell phones are playing an increasingly prominent role in how voters get political information and follow election news. Republicans and Democrats use social media in this way at similar rates. When asked about some reasons why they might follow political figures on social media, Republicans and conservative-leaning independents express a greater desire to be the first to find out about breaking political news, and to get political information that has not passed through the traditional media “filter.” Voters from both parties place a similar emphasis on the deeper connections that social media allows them to form with the candidates they support.
Hard-Nosed Advice from Veteran Lobbyist: ‘Win Ugly or Lose Pretty’
New York Times – Eric Lipton | Published: 10/30/2014
A veteran lobbyist told the oil and gas industry that, if it wants to continually expand drilling operations, it must be ready to “win ugly or lose pretty,” according to a secretly taped recording of the comments. Consultant Richard Berman, founder and chief executive of the Washington D.C.-based firm Berman and Co., made the comments during a speech to industry executives in June. He said executives must be willing to get dirty and dig up embarrassing information about environmentalists and liberal celebrities. And if the oil and gas executives solicit help from Berman’s firm, he said he would be able to hide their role in funding certain campaigns. One executive took issue with Berman’s comments and secretly recorded the speech, which he then gave to The New York Times.
How Political Donors Are Changing Statehouse News Reporting
Governing – Daniel Vock | Published: 11/1/2014
The Franklin Center for Government and Public Integrity is deploying reporters to cover state and local governments around the country. Its ultimate ambition is to have bureaus in every state. But they are not news bureaus in the way many traditional journalists understand them. They are being paid to cover government from an unabashedly ideological perspective. In a study of statehouse reporters released this summer, the Pew Research Center found 33 ideological outlets with state Capitol reporters across the country. Some who are affiliated with such groups wonder why citizen journalists, including those who are advocates of one cause or another, should be treated differently than traditional journalists who see themselves as objective.
In States Seen to Be Tilting Left, Voters Defy Democrats’ Forecast
New York Times – Jonathan Martin | Published: 11/5/2014
More striking than any Republican gains in red-state America on November 4 were the party’s U.S. Senate victories in Colorado and North Carolina and the near miss in Virginia. All are states that both parties believed were trending Democratic, and that Democrats boasted would before long be out of reach to Republicans. But demographic shifts that are gradually reshaping the American electorate, making it more racially diverse and younger, cannot overcome a difficult political environment and a weak message in a nonpresidential year. And the Democratic edge in sophisticated technological voter mobilization and targeting is eroding, as Republicans adopt similar techniques and catch up.
Federal:
Capitol Book Club, with a Bonus
New York Times – Ben Protess and Eric Lipton | Published: 11/2/2014
A book club gathers every month for lunch inside a private room at the National Republican Club of Capitol Hill. Unlike a local library’s book club, this event doubles as a political fundraiser. For the book club’s members – an A-list of lobbyists from banks and insurance companies – the main attraction is access to the U.S. House Financial Services Committee. The cost of admission is a campaign donation to whichever committee member is playing host. Each month, attendees say, the lobbyists typically donate $1,000 to $5,000. “It is a $50,000 fundraiser, without a sweat,” said one lobbyist.
Election 2014: A new level of collaboration between candidates and big-money allies
Washington Post – Matea Gold | Published: 11/3/2014
Just a decade ago, candidates shied away from being too closely associated with money raised by independent groups for reasons of appearance and for fear of running afoul of election laws. But the rapid spread of super PACs and politically active nonprofit organizations that followed the U.S. Supreme Court’s Citizens United decision has dramatically altered the climate. Political operatives are also taking advantage of the hands-off approach of a divided FEC, which has not re-examined coordination rules in the wake of the 2010 ruling. In that void, candidates and independent groups have sought to bring their operations in alignment as much as possible this year.
How to Waste 10 Million Dollars
Politico – Kenneth Vogel and Byron Tau | Published: 11/6/2014
Mayday PAC burst onto the political scene in the spring of 2014 with grandiose designs to elect a pro-campaign finance reform majority to the U.S. Congress by 2016. The 2014 cycle was a test run of sorts, with the group spending more than $10 million on a slate of candidates ostensibly united only in their belief in curbing the influence of big donors, lobbyists, and money in the political system. But voters cast their ballots for business as usual, leaving Mayday and its founders facing questions about the contrast between its bold predictions and results.
Republicans First Step was to Handle Extremists in Party
New York Times – Jeremy Peters and Thomas Hulse | Published: 11/5/2014
Republicans’ impressive showing on November 4 – marking the first time the GOP will have a majority in both the U.S. House and Senate since 2006 – was in large part the result of methodical plotting, careful candidate vetting, and abundant preparation to ensure the party’s candidates would avoid repeating the same devastating mistakes that cost them dearly in 2010 and 2012. In the end, the disciplined approach worked: no Republican imploded with the kind of fatal campaign gaffe that crushed the party’s hopes in the last two elections, and every established candidate prevailed in the primaries.
From the States and Municipalities:
Alabama – Firebrand Alabama Republican Collides With Ethics Law He Espoused
New York Times – Campbell Robertson and Alan Blinder | Published: 10/31/2014
State Rep. Michael Hubbard was arrested after a grand jury returned a 23-count indictment, partly on the basis of an ethics law he had championed, accusing him of using his positions as Alabama GOP chairperson and House speaker to steer thousands of dollars’ worth of business to companies in which he had a financial interest. Hubbard has denied the charges. Though they have not been accused of wrongdoing, some of Alabama’s most prominent executives appeared in the indictment, as did Bob Riley, a former two-term governor. This was unexpected, though perhaps it should not have been: Hubbard has been as strong a center of political gravity as the state has had in decades.
Arkansas – Arkansas Voters Approve Extended Term Limits
Governing – J.B. Wogan | Published: 11/5/2014
A ballot measure that would tighten ethics laws and change term limits passed in Arkansas. Issue 3 prohibits legislators and constitutional officers from taking gifts from lobbyists, with some exceptions; bans candidates from accepting campaign donations from corporations; increases the period that a former legislator must wait before registering as a lobbyist; and allows a lawmaker to serve up to 16 years in either chamber instead of the current limit of three two-year terms in the House and two four-year terms in the Senate.
California – California Lawmakers’ Campaign Credit-Card Spending Often Lacks Disclosure, Sacramento Bee Review Finds
Sacramento Bee – Jim Miller | Published: 11/2/2014
A review of California lawmakers’ credit-card spending by The Sacramento Bee found many provided only the barest of descriptions of their expenses on state-required campaign reports, despite a 2008 rule meant to improve disclosure. The lack of detail makes it difficult to determine whether legislators are using their campaign accounts to help them win re-election or do their jobs, or whether some have found an easy way to live a more luxurious lifestyle. Overall, lawmakers racked up more than $4 million in campaign credit-card charges during the first 18 months of this election cycle.
Florida – City Ethics Amendment Passes by Wide Margin
Tallahassee Democrat – Jeff Burlew | Published: 11/5/2014
Tallahassee voters overwhelmingly approved a charter amendment beefing up the city’s ethics program. It will create a seven-member ethics board with the power to investigate complaints and levy civil penalties; lower the maximum contribution that can be given to candidates from $1,000 to $250; and allow donors to receive rebates from the city of up to $25 if they give that much or more to candidates. The city commission has six months to enact an ethics code with jurisdiction over all officers and employees, including elected and appointed officials.
New York – 4 Indicted N.Y. Pols Win Re-election
Politico – Lucy McCalmont | Published: 11/5/2014
New York voters overwhelmingly re-elected four lawmakers – one to Congress and three to the state Legislature – who are under federal criminal indictments. U.S. Rep. Michael Grimm was re-elected to his House seat despite a 20–count indictment on tax related and other charges. Assemblyperson William Scarborough has been accused of misusing campaign funds for personal expenses. Sen. John Sampson could be sentenced to prison on charges including obstruction of justice, and witness and evidence tampering. Sen. Thomas Libous faces trial in 2015 following an indictment on charges of lying to federal agents.
Ohio – State Rep. Sandra Williams Found Guilty of Profiting from Ohio State Football Tickets
Columbus Dispatch – Jim Siegel | Published: 10/31/2014
State Rep. Sandra Williams pleaded no contest to charges she illegally sold Ohio State football season tickets purchased with campaign funds and did not report it to the state. She faces a maximum sentence of one year in jail and a $2,000 fine. The four 2010 tickets, worth a total of $2,255, were sold to lobbyist Ed Hogan. But Hogan made a money order out to Williams herself instead of to the campaign. Williams then deposited the money in her personal account and did not reimburse her campaign until FBI investigators discovered the error.
Pennsylvania – Harrisburg Lobbying Costs on the Rise
Citizens Voice – Robert Swift | Published: 11/2/2014
Lobbyists spent $116 million to influence Pennsylvania lawmakers last year, a 10 percent increase over 2012, with the top areas of lobbying interest in energy, the state budget, and healthcare issues. The lobbyist disclosure law requires corporations and trade associations that spent more than $2,500 in any quarter to register, broadly categorize how the money is spent, and identify general issues on which they lobby. Revelations that four House members allegedly accepted cash gifts from a confidential informant during a sting operation led the House and Senate to adopt rules banning lawmakers from accepting cash gifts. But bills to enact a total ban on gifts from lobbyists to lawmakers and public officials did not make much headway.
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.
October 31, 2014 •
News You Can Use Digest – October 31, 2014
National: In Democratic Election Ads in South, a Focus on Racial Scars New York Times – Jeremy Peters | Published: 10/29/2014 Democrats in the closest U.S. Senate races across the South are turning to racially charged messages jolt African-Americans into voting […]
National:
In Democratic Election Ads in South, a Focus on Racial Scars
New York Times – Jeremy Peters | Published: 10/29/2014
Democrats in the closest U.S. Senate races across the South are turning to racially charged messages jolt African-Americans into voting and stop a Republican takeover in Washington. The images and words they are using are striking for how overtly they play on fears of intimidation and repression. And their source is surprising. The effort is being led by national Democrats and their state party organizations – not, in most instances, by the shadowy and often untraceable PACs that typically employ such provocative messages.
Lobbyists, Bearing Gifts, Pursue Attorneys General
New York Times – Eric Lipton | Published: 10/28/2014
State attorneys general are now the object of aggressive pursuit by lobbyists and lawyers who use campaign contributions, personal appeals at lavish corporate-sponsored conferences, and other means to push them to drop investigations, change policies, negotiate favorable settlements, or pressure federal regulators, found an investigation by The New York Times. A robust industry of lobbyists and lawyers has blossomed as attorneys general have joined to conduct multistate investigations and pushed into areas as diverse as securities fraud and Internet crimes. But unlike the lobbying rules covering other elected officials, there are few “revolving-door” restrictions or disclosure requirements governing state attorneys general.
Federal:
FEC Deadlock Keeps Internet Free from Broadcast Campaign Ad Regulations
Washington Times – Stephan Dineen | Published: 10/26/2014
Democrats on the FEC want to extend the agency’s reach to online political ads, a change in policy that critics fear could lead to tough new limits on speech. The FEC deadlocked on whether to investigate Checks and Balances for Economic Growth, a group that ran a pair of online advertisements attacking President Barack Obama and U.S. Sen. Sherrod Brown. While the organization may have spent close to a million dollars on the ads, it did not file any disclosure reports with the FEC, as it would have if the ads were run on television or radio. The carve-out for online-only communications has existed for more than eight years, but FEC Vice Chairperson Ann Ravel said the rules have not kept pace with the changing times.
From the States and Municipalities:
Arizona – Lobbyists Aid Campaigns of Doug Ducey, Fred DuVal
Arizona Republic – Yvonne Wingett Sanchez and Rob O’Dell | Published: 10/26/2014
Arizona gubernatorial candidates Fred DuVal and Doug Ducey have each relied heavily on the state’s lobbying corps for advice and to finance their campaigns. Combined, the candidates have collected at least $435,000 from donors who have registered as lobbyists and many of whom hope to have access to the next governor and his administration. “Lobbyists are premier players on both sides, and these lobbyists represent big interests that have large stakes in the outcome of the election; they do what comes naturally – they try to influence the results,” said Larry Sabato, director of the University of Virginia’s Center for Politics.
District of Columbia – Ethics Reforms Shepherded by Bowser Look Better in Hindsight, Some Say
Washington Post – Mike DeBonis | Published: 10/28/2014
When the District of Columbia Council passed an ethics reform bill more than two years ago, Councilperson Tommy Wells said the bill’s lack of teeth was “embarrassing.” Now, Wells supports the legislation, which was shepherded through the council by Muriel Bowser, who is running for mayor. It is an indication of how Bowser’s much-criticized ethics package looks considerably better in hindsight. Observers say they have seen a marked improvement in the city government’s handling of ethics matters, even if there is more room for improvement.
Atlanta Magazine – Jim Walls | Published: 10/23/2014
During this year’s election season, questions about ethics allegations filed against Georgia Gov. Nathan Deal four years ago have grown stronger. His opponent, Jason Carter, returns to them almost daily. Technically speaking, all the complaints against Deal were resolved in 2012, when he paid $3,350 in administrative fees for filing defective campaign and personal finance disclosures. But a review of the state ethics commission’s files shows the investigation leading to that settlement was never really completed. Commission staffers abandoned inquiries into tens of thousands of dollars spent on air travel and credit card charges, and questioned no one but lawyers for the campaign accused of wrongdoing.
Kentucky – State Rep. Keith Hall Indicted on Bribery Charge
Lexington Herald-Leader – John Cheves | Published: 10/23/2014
A federal grand jury indicted Kentucky Rep. Keith Hall on bribery charges, alleging he paid a state inspector more than $46,000 to ignore environmental violations at his Pike County coal mines. The indictment also charged the inspector, Kelly Shortridge, who resigned in February from his job in the Kentucky Division of Mine Reclamation and Enforcement. The indictment alleges Hall paid bribes to Shortridge as bogus consulting fees, most of them from a company owned by Hall through a shell corporation.
New York – Mayor’s Old Pal Wins New Biz as Lobbyist
Crain’s New York Business – Chris Bragg | Published: 10/26/2014
Soon after vetting administration hires as a member of New York City Mayor Bill de Blasio’s transition team, Harold Ickes opened a New York branch of his K Street lobbying firm, the Ickes & Enright Group. He and his employees have since lobbied a dozen de Blasio administration officials for a rapidly growing number of clients. In recent months, the Ickes & Enright Group has signed a number of clients seeking to influence local government. At the same time, Ickes remains a key de Blasio political adviser.
Ohio – State Rep. Mallory Pleads Guilty to Improperly Accepting, Disclosing Gifts from Lobbyists
Columbus Dispatch – Jim Siegel | Published: 10/29/2014
Ohio Rep. Dale Mallory pleaded guilty to two misdemeanor ethics law violations related to taking Cincinnati Bengals tickets from lobbyists then failing to properly report them on required disclosure forms. The Joint Legislative Ethics Committee referred Mallory for prosecution after finding he improperly accepted tickets from payday lending industry lobbyists in 2009 and 2013 that exceeded the $75 gift limit. Lawmakers also must disclose any gift valued at over $25. A pair of lobbyists connected to the matter have already pleaded guilty to misdemeanor charges.
Oklahoma – Rule Change Will Allow Lobbyists to Spend More on Oklahoma Lawmakers
The Oklahoman – Rick Green | Published: 10/27/2014
Current rules limit to $100 the amount a lobbyist can spend on an Oklahoma lawmaker, but that amount can be multiplied by the number of clients the lobbyist represents. Under new rules that take effect next year, lobbyists will be limited to spending $500 on a particular lawmaker, no matter how many clients they represent. The net effect will be that some lobbyists, particularly those with fewer clients, could see an increase in the amount of money they can spend per legislator, and some, particularly those with numerous clients, could see a decrease.
Pennsylvania – Pa. Lobbyist Fees Increased to Pay for Public Disclosure Database
Harrisburg Patriot-News – Christian Alexandersen | Published: 10/23/2014
The Independent Regulatory Review Committee voted to increase Pennsylvania’s lobbyist registration fee from $200 to $300. The increase will go to offset the cost of maintaining the department of state’s online disclosure database. The state attorney general’s office must review the committee’s decision in the next 30 days before the fee increase can be implemented for the 2015-2016 legislative session. The attorney general is expected to approve the increase.
Pennsylvania – Pennsylvania Justice in Porn Email Scandal Retires
Greenfield Reporter – Mark Scolforo and Marc Levy (Associated Press) | Published: 10/27/2014
Pennsylvania Supreme Court Justice Seamus McCaffery, embroiled in an email pornography scandal and accused of other workplace misconduct, retired days after he was suspended from his job. McCaffery, who served for nearly seven years, was named in a review by the court’s chief justice as exchanging hundreds of pornographic emails with lawyers in the Pennsylvania attorney general’s office. McCaffery also was accused of authorizing hundreds of thousands of dollars in referral payments by personal injury law firms to his wife, helping fix a traffic ticket she received, and improperly attempting to influence the assignment of judges in the Philadelphia Court of Common Pleas.
South Carolina – Bobby Harrell: A quick rise to power, and a quicker fall
Charleston Post & Courier – Jeremy Borden and Schuyler Knopf | Published: 10/24/2014
When Bobby Harrell first entered the South Carolina Legislature in 1993, he quickly proved adept at moving up the ranks. When he became House speaker in 2005, some members expected the gregarious leader with an open-door policy would usher in a new era of inclusion. Harrell’s charm remained as strong as ever, but he did not shy away from flexing the considerable power of the speaker’s office when he felt he needed to. Harrell’s resignation due to ethics violations has generated sympathy in Columbia, but observers also see a cautionary tale. His critics have said Harrell had begun to feel “bulletproof,” becoming more focused on the trappings of his leadership position than legislative agendas and policy.
Texas – Ethics Commission Approves Dark Money Regulation
Austin American-Statesman – David Saleh Rauf (San Antonio Express-News) | Published: 10/29/2014
The Texas Ethics Commission approved a new rule that requires so-called dark money groups to reveal their donors. At the heart of the commission’s regulation is an attempt to determine when a nonprofit’s political activity crosses the line to qualify it as a bona fide PAC that is required under state law to disclose donors. Under the new rule, a nonprofit would have to start disclosing donors if 25 percent or more of its expenditures can be classified as politically motivated. It also would require disclosure if political contributions account for more than 25 percent of the group’s total donations in a calendar year.
Virginia – McAuliffe’s New Virginia Ethics Panel Meets for First Time
Washington Post – Laura Vozzella | Published: 10/27/2014
Virginia Gov. Terry McAuliffe’s ethics reform commission is poised to recommend a tightening of gift and travel rules for state leaders, but consensus proved more difficult on other points during the panel’s first meeting. The Commission on Integrity and Public Confidence in State Government plans to have recommendations ready by December 1. It will be up to the General Assembly to write the actual rules. The commission also decided to move redistricting reform to the front burner after a federal judicial panel ruled the state’s Third Congressional District lines are unconstitutional.
State and Federal Communications produces a weekly summary of national news, offering more than 80 articles per week focused on ethics, lobbying, and campaign finance.
October 24, 2014 •
News You Can Use Digest – October 24, 2014
National: Corporations, Advocacy Groups Spend Big on Ballot Measures The Center for Public Integrity – Liz Whyte | Published: 10/23/2014 Voters may not know it, but the millions of dollars paying for ads on ballot measures they will consider on November […]
National:
Corporations, Advocacy Groups Spend Big on Ballot Measures
The Center for Public Integrity – Liz Whyte | Published: 10/23/2014
Voters may not know it, but the millions of dollars paying for ads on ballot measures they will consider on November 4 come from large companies and national advocacy groups. Many of the messages are tailored to defend or expand the business interests of companies such as Coca-Cola and Monsanto, yet few have their names in the ads. Through October 20, television ad spending on ballot issues totaled roughly $119 million. Four of the five most expensive ballot initiatives feature at least one corporate patron.
How Judicial Campaign Ads May Be Affecting Legal Decisions
Washington Post – Niraj Chokshi | Published: 10/22/2014
A new study found that the more ads aired during state Supreme Court campaigns, the more likely justices are to rule against criminal defendants, potentially from fear of appearing “soft on crime.” That finding is the result of an analysis of 3,000 state Supreme Court criminal appeals from 2008 to 2013 and is the latest in a string of recent research that suggests increased campaign spending, by pro-business groups in many cases, may be distorting judicial rulings. The report also shows outside spending in judicial races has been on the rise in recent years and such groups tend to buy more attack ads than candidates or parties.
Federal:
How Billionaire Oligarchs Are Becoming Their Own Political Parties
New York Times – Jim Rutenberg | Published: 10/17/2014
The U.S. Supreme Court’s Citizens United ruling in 2010 effectively blew apart the Bipartisan Campaign Reform Act’s (BCRA) restrictions on outside groups and their use of corporate and union money in elections. That same year, a related ruling from a lower court made it easier for wealthy individuals to finance those organizations. The result was a power shift, from the party bosses to the rich individuals who ran super PACs. Individuals with the wherewithal can start what are in essence their own political parties, built around pet causes or industries and backing politicians uniquely answerable to them. “Suddenly, we privatized politics,” said Trevor Potter, an election lawyer who helped draft BCRA.
Why House Republicans Alienate Hispanics: They don’t need them
New York Times – Nate Cohn | Published: 10/21/2014
Republicans would stand little, if any, chance of winning the presidency in 2016 if they do not do more to appeal to Hispanic voters. Yet the party’s congressional leaders show little sign of doing so, blocking an immigration overhaul and criticizing President Barack Obama for his plan to defer deportation for undocumented migrants. There is a simple reason that congressional Republicans are willing to risk alienating Hispanics: they do not need their votes, at least not this year. The GOP would probably hold the House, and still have a real chance to retake the Senate, if they lost every single Hispanic voter in the country.
From the States and Municipalities:
Alabama – Alabama House Speaker Mike Hubbard Indicted
USA Today – Brian Lyman (Montgomery Advertiser) | Published: 10/20/2014
Alabama House Speaker Mike Hubbard was indicted on 23 felony counts in a months-long investigation into allegations of political corruption. According to the indictment, Hubbard used his position as chairperson of the state Republican Party and as a House member to secure business for his companies. He is also accused of soliciting help with his business from some of the most prominent names in the state, including former Gov. Bob Riley, who is now a lobbyist. As part of the wider probe, Rep. Greg Wren pleaded guilty to a misdemeanor charge of using his office for personal gain and resigned his seat. Rep. Barry Moore pleaded not guilty to perjury and giving false statements, and his trial is scheduled to start soon.
California – Campaign Cash Crackdown OK’d
San Diego Union Tribune – David Garrick | Published: 10/21/2014
San Diego City Council members unanimously adopted a series of new campaign finance regulations. The rules would force PACs to disclose their largest contributors earlier in a campaign. They would also make it harder for a political committee to reproduce and distribute the exact same advertisements and campaign literature used by a candidate the committee supports.
Illinois – Reporter Resigns Following Rauner Complaint
Belleville News Democrat – Sara Burnett (Associated Press) | Published: 10/22/2014
Dave McKinney quit his job at The Chicago Sun-Times and accused the newspaper of bowing to pressure from gubernatorial candidate Bruce Rauner by removing him from the campaign beat. McKinney, a 19-year veteran of the newspaper who covered the state capital, said The Sun-Times reassigned him after the Rauner campaign accused him of a conflict-of-interest, which he denies. McKinney said the paper stopped assigning him to cover the gubernatorial campaign after publishing an article by him and two other reporters that alleged Rauner made bullying statements to a person who had threatened to sue one of his companies. The newspaper recently reversed a three-year policy of not endorsing political candidates; its lone endorsement of the 2014 campaign was of Rauner for governor.
North Carolina – Charter School Power Broker Turns Public Education into Private Profits
ProPublica – Marian Wang | Published: 10/15/2014
Businessperson Baker Mitchel has started four charter schools in North Carolina. His model for success embraces decreased government regulation, increased privatization, and, if all goes well, healthy profits. Every year, millions of public education dollars flow through his chain of four nonprofit charter schools to for-profit companies he controls. Over six years, Mitchell’s companies have taken in close to $20 million in fees and rent, some of the schools’ biggest expenses. The schools buy or lease nearly everything from companies owned by Mitchell. Unlike traditional school districts, at Mitchell’s charter schools there is no competitive bidding.
South Carolina – Donors Use Loophole to Pour Money into Governor’s Race
Charleston Post & Courier – Jeremy Borden | Published: 10/17/2014
Chowdary Yalamanchili, a Houston real-estate investor, has maxed out campaign contributions to South Carolina Gov. Nikki Haley for himself and at least 16 business entities. Haley’s opponent, state Sen. Vincent Sheheen, has received tens of thousands in donations from several different entities affiliated with the South Carolina Association for Justice, a trial lawyer’s trade group. In both cases, the organizations and people involved were within the state’s $3,500 maximum contribution limit but were able to give more by creating separate but similar business entities. Under South Carolina law, each business or corporate entity is considered a separate person, able to contribute the personal maximum of $3,500.
South Carolina – SC House Speaker Harrell Pleads to 6 Misdemeanor Finance Violations; Gets No Jail Time
The Daily Journal – Meg Kinnard (Associated Press) | Published: 10/23/2014
South Carolina House Speaker Bobby Harrell pleaded guilty to six counts of misconduct in office and will immediately resign his seat. Harrell was sentenced to six years in prison, which will be suspended as long as he completes three years of probation as part of the plea agreement. He also agreed to help prosecutors in any other investigations into wrongdoing involving the Legislature. He must pay a $30,000 fine and reimburse the state $93,958, and cannot to seek or hold public office for three years. Harrell was indicted in September on ethics and misconduct-related charges, including illegally using campaign money for personal expenses and filing false disclosure reports.
Vermont – Court Finds Republican Governors Association Violated Vermont Campaign Finance Law
Columbus Republic – Dave Gram (Associated Press) | Published: 10/22/2014
A Vermont judge ruled the Republican Governors Association (RGA) violated campaign finance law when it set up a PAC – Green Mountain Prosperity – that the state said was designed to get around a $2,000 campaign contribution limit. Green Mountain Prosperity was active during the close 2010 gubernatorial race won by Peter Shumlin over Republican Lt. Gov. Brian Dubie. The RGA argued Green Mountain Prosperity was an independent expenditure PAC, not coordinating with a party or campaign. The court found the RGA and Green Mountain Prosperity had no separate board, no separate staff, and no separate fundraising apparatus.
Washington – Some Lobbyists Play Key Role in Washington Campaign Finance
KUOW – Austin Jenkins | Published: 10/20/2014
Unions and business interests may be among the top political spenders in Washington this election year, but there is an influential group that does not necessarily show up in the campaign finance reports – lobbyists. So far in 2014, lobbyists have reported nearly $6 million in political donations. But that does not capture the whole picture. Lobbyists only have to report their clients’ contributions if they deliver the checks themselves, or if they are the ones who make the decisions about political giving. Simply advising clients on where to give and how much to give does not trigger the reporting requirement. That means this aspect of the lobbying business happens largely behind-the-scenes.
Wisconsin – Campaign Coordination Suit Filed in a Way to Get Favorable Judge
Milwaukee Journal Sentinel – Patrick Marley | Published: 10/17/2014
When a conservative organizations filed a lawsuit over Wisconsin’s campaign finance laws, its attorneys filled out court paperwork in a way that all but guaranteed they got a judge who has already ruled groups and candidates can work closely together. Two weeks after Citizens for Responsible Government Advocates filed its suit, U.S. District Court Judge Rudolph Randa issued an order limiting how the campaign finance law could be enforced, opening the door for groups and candidates to team up in the weeks before the November 4 election.
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