Federal:

Campaign Finance Forty Years Later

New York Times; Staff –   | Published: 10/13/2014

Forty years after Congress passed the Federal Election Campaign Act, many of the provisions have been struck down as unconstitutional and U.S. Supreme Court rulings have paved the way for outside groups to raise and spend more money. The New York Times, in its “Room for Debate” feature, asked seven experts on the issue to give their opinions on the state of campaign finance reform today.

FEC Votes Suggest Gridlock Is Easing

Politico – Byron Tau and Kyle Cheney | Published: 10/9/2014

After some five years of ties and gridlock, the FEC approved several measures as part of a compromise brokered between its two newest members: Republican Chairperson Lee Goodman and Democratic Vice Chairperson Ann Ravel. Goodman and Ravel were both appointed at the same time by President Barack Obama in 2013, and they have forged a bipartisan alliance to help the commission function better. The FEC has long been a bastion of gridlock, and the recent votes have no practical impact on campaign finance laws. But the FEC’s action suggests further movement is possible on what has been seen as a hopelessly dysfunctional panel.

Secret Money Fueling a Flood of Political Ads

New York Times – Nicholas Confessore | Published: 10/10/2014

Fifty-five percent of broadcast advertising in the midterm elections has been paid for by groups that do not fully disclose their donors, compared with 45 percent from super PACs, which are required to file regular financial disclosures, according to an analysis by The New York Times. The preponderance of secretly funded advertising defies one of the assumptions of the U.S. Supreme Court’s Citizens United decision, which allowed outside groups to raise and spend more money, so long as they did not coordinate with candidates and parties. In the majority opinion, Justice Anthony Kennedy envisioned campaigns in which unlimited independent spending by unions and corporations would be paired with robust real-time disclosure.

From the States and Municipalities:

California – Kevin de León Becomes State Senate Leader in $50,000 Event

Los Angeles Times – Seema Metha and Patrick McGreevy | Published: 10/15/2014

Kevin de Leon was sworn in as the first Latino to head the California Senate in more than a century with an expensive soiree. The event at Walt Disney Concert Hall with an estimated price tag of $50,000 resembled a presidential inaugural more than the low-key affairs at the Capitol held by past Senate leaders. The California Latino Legislative Caucus Foundation, which receives donations from special interests seeking influence in the Legislature, picked up the tab for the event. Some suggested it was an inappropriate extravagance at a time when the state Senate is struggling to shake off the taint of corruption scandals and regain public trust.

Colorado – Citizens United Can Make Movie without Disclosing Donors, Court Says

Denver Post – Joey Bunch | Published: 10/14/2014

The 10th U.S. Circuit Court of Appeals ruled Citizens United can air a movie it has produced about Colorado politics without identifying its donors. Citizens United sued after Secretary of State Scott Gessler said the movie fell under Colorado’s campaign finance laws. A federal judge agreed the movie was electioneering that required disclosure. But Citizens United argued the film deserved the same free-speech protections as traditional media. The appeals court said while the movie is exempt from disclosure, the secretary of state’s office could require it for ads if the ads name a candidate and make a case for support or defeat.

Georgia – Once Again, a Carter Aims to Govern in Georgia

New York Times – Richard Fausset | Published: 10/15/2014

The most famous name in Georgia gubernatorial race belongs to state Sen. Jason Carter, grandson of former President Jimmy Carter. But rather than a referendum on the Carter legacy, the contest remains focused to a large extent on the record of incumbent Nathan Deal. One hurdle for Deal, said Merle Black, a political science professor at Emory University, is the possibility that conservative voters, soured by continuing ethics controversies tied to Deal’s 2010 campaign, may see him as “a candidate that they cannot get really excited about,” and sit out the election.

Illinois – Campaign Contribution Limits Off in Chicago Mayor’s Race

Chicago Tribune – John Byrne | Published: 10/14/2014

William Kelly gave $100,000 of his own money to his Chicago mayoral campaign. In doing so, he has also lifted the cap for campaign donations in the race. State law mandates that the $5,300 individual campaign contribution limit be lifted in a municipal race in one of two instances: a candidate donates at $100,000 or more to their campaign fund or an outside organization puts that much into a race to support or attack a candidate in the race.

Kentucky – Top Lobbyists Make More than Governor – a LOT More

Louisville Courier Journal – Tom Loftus | Published: 10/16/2014

Through the first eight months of 2014, Kentucky’s top lobbyists have made more money in fees than Steve Beshear will make in salary all year as governor. Lobbyist Bob Babbage, for example, has been paid $562,433 through August 31. Beshear is paid an annual salary of $138,012.

Missouri – Ethics Complaint Filed over Lobbyist Gifts to Missouri Lawmakers

Kansas City Star – Jason Hancock | Published: 10/15/2014

A complaint was filed with the Missouri Ethics Commission over a $3,000 dinner held at a Dallas steakhouse in August for five state legislators during the American Legislative Exchange Council’s annual convention. While five lobbyists reported the gifts to the commission as going to the individual lawmakers who attended, seven other lobbyists reported the gifts to “the entire General Assembly.” Missouri law states that a gift can be reported to a group – such as a committee, legislative chamber, or the entire Legislature – if all of the members of that group are “invited in writing.”

North Carolina – Former Charlotte Mayor Patrick Cannon Sentenced to 44 Months in Federal Prison

Charlotte Observer – Mark Washburn, Michael Gordon, Ames Alexander, and Rick Rothacker | Published: 10/14/2014

Former Charlotte Mayor Patrick Cannon was sentenced to 44 months in prison after admitting to using his public positions in North Carolina’s largest city for personal financial gain, including taking at least $50,000 in bribes. A nearly four-year investigation resulted in his arrest and resignation in March. Prosecutors said Cannon accepted bribes from a strip club owner and two undercover federal agents posing as investors in exchange for helping them navigate city government and zoning issues through his elected positions. Prosecutors said he took cash, paid travel to Las Vegas, and use of a luxury apartment from the undercover agents.

Oregon – Oregon’s Embattled First Lady Faces Ethics Probe over Business Activity

Washington Post – Jose DelReal | Published: 10/14/2014

After admitting to a sham marriage to help an immigrant remain in the U.S., Oregon Gov. John Kitzhaber’s fiancée said she lived on a property in 1997 that was intended to be used for a marijuana growing operation. Cylvia Hayes issued a statement saying the plan “never materialized” on the remote property. She is also under fire for earning money as a consultant from organizations seeking to influence state policy. Kitzhaber asked the Oregon Government Ethics Commission for a formal opinion on whether Hayes is subject to state ethics laws and, if so, whether she has broken them in the consulting matter. It is not clear how much damage the reports about Hayes could do to Kitzhaber’s re-election campaign.

Pennsylvania – Phila. Ethics Board Tightens Campaign-Finance Rules

Philadelphia Inquirer – Chris Hepp | Published: 10/15/2014

The Philadelphia Board of Ethics approved a series of amendments to the city’s campaign finance law, the most significant aimed at tightening restrictions on what constitutes a third party’s support of a candidate. The board approved an amendment to address the reuse of campaign materials produced by a candidate, but then picked up and distributed by an individual or PAC independent of the candidate. Under the new rule, such reuse would be considered an in-kind campaign contribution and would fall under the city’s donation limits.

Texas – An Ad with a Wheelchair Shakes up the Texas Governor’s Race

New York Times – David Montgomery | Published: 10/13/2014

Texas gubernatorial candidate Wendy Davis defended her campaign television ad that highlights opponent Greg Abbott’s use of a wheelchair, denying it exploits his disability while attacking his record. The 30-second ad begins with a shot of an empty wheelchair. It criticizes Abbot, the state’s attorney general, for receiving millions from a 1984 lawsuit after a falling tree injured his spine, then working to limit the legal rights of other victims. The spot has provoked a nationwide debate over its tone and the boundaries of political attack ads.

Washington – Ethics Panel Votes to Limit Number of Free Meals Lawmakers Can Accept from Lobbyists

Columbus Republic – Rachel LaCorte (Associated Press) | Published: 10/14/2014

Beginning January 1, Washington lawmakers could accept as many as a dozen free meals from lobbyists each year under a new rule adopted by the Legislative Ethics Board. The rule also defines a meal as a sit-down meal such as breakfast or lunch, even if the meal is served at a private residence. Receptions hosted by lobbyists would not count as a meal. The board planned to meet again before the end of the year to consider draft legislation to change the current law that only requires meals worth $50 or more to be reported to the state Public Disclosure Commission.

Wisconsin – Federal Judge Orders State to Stop Enforcing Anti-‘Coordination’ Law

WiscNews.com – Dee Hall | Published: 10/14/2014

U.S. District Court Judge Rudolph Randa blocked enforcement of a Wisconsin election law that is at the center of an investigation into Gov. Scott Walker’s 2012 recall campaign and more than two dozen conservative organizations. The ruling allows candidates to coordinate and work closely with independent groups that do not explicitly tell people how to vote. State prosecutors cited the coordination law in launching a so-called John Doe investigation into Walker’s campaign. A federal appeals court overturned a ruling from Randa in May that stopped the probe, but also said the issue needs to be resolved in state courts.

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

National:

Wave of Ethics Complaints Hits Top Races

National Journal – Sarah Mimms | Published: 10/8/2014

With Election Day approaching, the closest races in the country have become magnets for ethics complaints. Watchdog groups and political parties have filed dozens of complaints against Republicans and Democrats in tough contests, questioning fundraising tactics and accusing campaigns of improper coordination, among other allegations, just as voters begin to tune in to the election-year fight. Regardless of their merits, the likelihood that any of these ethics complaints will be acted on before Election Day is slim. But for many of these groups, the result of a complaint is not nearly as important as filing the complaint itself.

Who is Donating to Political Campaigns Now? Big Pot.

Raleigh News & Observer – Kristen Wyatt (Associated Press) | Published: 10/6/2014

The U.S. marijuana industry is making campaign contributions to support cannabis-friendly candidates and ballot questions that could bring legal pot to more states. Medical marijuana businesses have been giving to candidates since the late 1990s. With the arrival of recreational pot in Colorado and Washington, the industry and its political influence are expanding rapidly. Marijuana measures will be on the November ballot in Oregon, Florida, Alaska, and Washington, D.C, so many donations are being funneled into those campaigns and the candidates who support them.

Federal:

A Campaign Dollar’s Power Is More Valuable to a Challenger

New York Times – Lynn Vavreck | Published: 10/7/2014

Political scientists have found the relationship between campaign spending and election results is problematic. The difficulty stems from a general pattern in U.S. House and Senate elections. In congressional elections from 1992 to 2012, challengers who spent more money won more often than those who spent less. The opposite was true for incumbents, but correlation does not always imply causation. The question is not just whether spending affects election outcomes, but how spending might affect different kinds of candidates differently.

FEC Votes to Relax Campaign Finance Rules

The Hill – Benjamin Goad | Published: 10/9/2014

The FEC moved to formally relax campaign finance restrictions in response to a pair of U.S. Supreme Court decisions. The commission agreed on language that will amend its rules to conform to the Citizens United ruling, which struck down restrictions that previously barred corporations and unions from spending money from their general treasury funds to support or oppose candidates. The agency also approved of a second set of regulations in the form of an interim final rule responding to the ruling in McCutcheon v. FEC. The decision eliminated aggregate contribution limits for individual donors in a single election cycle.

Nationals are Champs for Fundraisers

Politico – Byron Tau and Kevin Robillard | Published: 10/3/2014

Candidates, parties, and PACs have spent at least $245,000 on Washington Nationals tickets, gear, and seats during this election cycle. Most of that money went to hosting fundraising events at Nationals Park or buying tickets for donors, constituents, and lobbyists. Even more political cash goes to the Major League Baseball team in the form of corporate skybox rentals that often used to host members of Congress for fundraising events, money that is not always identified in campaign finance reports. The Nationals are in a league of their own when it comes to collecting political dollars; according to CQ Moneyline, the other seven teams in this year’s playoffs barely merit a mention as venues to collect political money or host wealthy donors.

From the States and Municipalities:

Alaska – As Energy Boom Ends, a Political Identity Crisis in Alaska

New York Times – Kirk Johnson | Published: 10/8/2014

Economic anxiety in Alaska is roiling an already sharp-edged political season, focused on one of the most competitive U.S. Senate races in the country: an endangered Democratic incumbent, Mark Begich, against Republican challenger, Dan Sullivan, a former state attorney general and natural resources commissioner. Alaska might appear politically conservative, and measured by election results, especially on the presidential level, it is. But many Alaskans say ideology is in fact a shallow measure of the political climate, and hard-nosed practicality – what does Alaska need from Washington and who is best at getting it – can often hold as much sway.

Colorado – Republicans Win Super PAC Lawsuit

Law Week Colorado – Hannah Garcia | Published: 10/2/2014

A District Court judge sided with the Colorado Republican Party in its efforts to establish its own Super PAC, while a local watchdog group is decrying the ruling as an erasure of state law surrounding political contributions. The GOP argued it was entitled to form the PAC because independent expenditures made by any person is permissible under the state constitution, and those expenditures are not subject to contribution limits and are permissible as long as there is no coordination with the party. Colorado Ethics Watch argued the committee is controlled and coordinates with the Republican Party, and because of that, is subject to the same contribution limits as political parties.

Illinois – When Interests Overlap for Durbin, Lobbyist Wife

Insurance News Net – Katherine Skiba and Kim Geiger (Chicago Tribune) | Published: 10/5/2014

A Chicago Tribune investigation found instances in which Loretta Durbin’s lobbying clients have received federal funding promoted by her husband, U.S. Sen. Richard Durbin, raising questions about whether the power couple have done enough to avoid inherent conflicts-of-interest as they go about their jobs. Sen. Durbin acknowledged occasional “overlap” in which his wife’s clients received his help, but both insisted she limited her lobbying to Illinois and never sought federal funds. The couple said once the decision had been made not to lobby the federal government, Sen. Durbin was not consulted when she considered new clients.

Missouri – Gifts to Missouri Lawmakers Are Not Always Easy to Track

Kansas City Star – Jason Hancock | Published: 10/6/2014

Seven lobbyists, representing businesses ranging from Hallmark to Peabody Energy, paid the lion’s share of the $3,000 cost of an evening for Missouri lawmakers at an expensive Dallas steakhouse this summer and reported the gifts as going to “the entire General Assembly.” The dinner was part of the American Legislative Exchange Council’s annual convention. Critics of Missouri’s ethics laws have long complained that reporting gifts to groups instead of individuals violates the spirit of the disclosure requirements by making it difficult, and in some cases impossible, to tell who is getting gifts from whom.

Nevada – Judicial Candidate Resigns from Nevada Ethics Commission

Reno Gazette-Journal – Emerson Marcus | Published: 10/6/2014

The executive director of the Nevada Commission on Ethics has resigned amid a complaint that she used her office to advance her campaign to become a Washoe County Family Court judge. Caren Cafferata-Jenkins stepped down on October 9. Former commission investigator Michael Lawrence filed a complaint against her in June, saying she turned the commission office “into her own personal Kinko’s” for her campaign. Cafferata-Jenkins has denied the allegations and said Lawrence is bitter after losing his job in April. She said she is resigning because the complaint is bringing negative attention on the commission.

New Jersey – N.J. Lawmaker Tries to Limit New Bills … by Introducing a New Bill

Newark Star Ledger – Matt Friedman | Published: 10/6/2014

New Jersey Assemblyperson Anthony Bucco, who has looked on as his colleagues have introduced thousands of bills, sometimes on seemingly frivolous subjects and usually with little chance of passage, says he has had enough. And to come up with a solution, Bucco introduced a bill. Bucco, proposed legislation that would limit state senators to being the top prime sponsor on just 25 bills or resolutions per two-year session, and keep Assembly members to just 15 bills. At the end of the term, each bill would have to include an estimate by the Office of Legislative Services of how much it cost to draft it, process it, and consider it.

Pennsylvania – Fattah Nonprofits Paid Millions to Ex-Staffers

Philadelphia Daily News – William Bender | Published: 10/7/2014

Between 2001 and 2012, nonprofits founded or supported by U.S. Rep. Chaka Fattah have paid out at least $5.8 million to his associates, including political operatives, ex-staffers, and their relatives, according to The Philadelphia Daily News. Three people who had ties to the organizations were later convicted of federal crimes. For the past seven years, criminal investigators have been looking at Fattah and the cottage industry of mostly taxpayer-funded nonprofits run by his political allies.

Pennsylvania – Pittsburgh’s Campaign Finance Law Called Flawed

Pittsburgh Post-Gazette – Chris Potter | Published: 10/5/2014

One of the key enforcement mechanisms of Pittsburgh’s campaign finance ordinance is defunct; other provisions are contradictory. In an apparent oversight, the law omits mayoral and city controller races from the definition of races it covers. “The law is completely meaningless; this is what you tend to get when you approach public policy from the position of public relations,” said city Controller Michael Lamb. Across the state, efforts to rein in political spending appear to have met with more success.

South Carolina – State and Federal Investigation Focuses on Political Action Committee Money, State Contracts

Charleston Post & Courier – Jeremy Borden | Published: 10/8/2014

Investigators from the State Law Enforcement Division and federal agencies have launched a broad inquiry into the actions of several members of the South Carolina House, focused at least in part on some members of the Ways and Means Committee. Sources in a position to know about the investigation said the probe revolves around allegations that lawmakers sold their votes, funneled money from the state budget into their own pockets, and misused money from a PAC.

Virginia – McAuliffe Aide Suggested Job for Senator’s Daughter If He Remained in His Seat

Washington Post – Laura Vozzella | Published: 10/2/2014

Virginia Sen. Phillip Puckett abrupt exit from the Legislature, which flipped control of the chamber to the GOP and thwarted Gov. Terry McAuliffe’s goal of expanding health coverage, came amid accusations that Republicans had enticed him to leave with job offers for himself and his daughter, triggering an ongoing federal investigation. Now, a voice-mail message suggests Puckett fielded a similar overture from Paul Reagan, McAuliffe’s chief of staff, if he stayed in the Senate.

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.

National:

Mostly Black Cities, Mostly White City Halls

New York Times – Richard Fausset | Published: 9/28/2014

Disparities between the percentage of black residents and the number of black elected officials are facts of life in scores of American cities, particularly in the South. The unrest that followed the shooting death of 18-year-old Michael Brown in Ferguson, Missouri has emphasized how much local elections can matter, and prompted a push there for increased black voter participation. The disparities result from many factors, but Ferguson has become a vivid example of the way a history of political disengagement and underrepresentation can finally turn toxic.

Federal:

Court Reviews Contractor Political Donations

BusinessWeek – Pete Yost (Associated Press) | Published: 9/30/2014

In a dispute over a ban on political contributions by individual federal contractors, U.S. Court of Appeals for the District of Columbia Circuit grappled with reconciling the restrictions and their purpose of preventing corruption with the First Amendment and the various ways contractors could get around the ban. There is no such prohibition for corporate federal contractors that set up political committees or individuals who serve as corporate officers. The challengers filing the lawsuit say the different treatment violates the equal protection clause of the Constitution because similarly situated groups of people are not subject to the ban.

Left Embraces Boycott Politics

The Hill – Julian Hattem | Published: 10/2/2014

From gun control to climate change to same-sex marriage, a number of Fortune 500 companies are succumbing to pressure campaigns and boycotts and are falling in line with liberal positions on issues that Democrats have been unable to move through Congress. The Internet has made corporations a more alluring target to Web-fluent activists trying to change the country’s culture. It has also made companies more responsive. Conservative activists have mounted pressure efforts of their own, but their campaigns are often reacting, staged in support of businesses that are under fire from the left.

U.S. Judge Dismisses Republican Challenge to SEC Pay-to-Play Rule

Reuters – Sarah Lynch and Jonathan Stempel | Published: 9/30/2014

The U.S. Securities and Exchange Commission won dismissal of a lawsuit by state Republican parties in New York and Tennessee claiming its limits on some investment firm campaign contributions violate free-speech rights. U.S. District Court Judge Beryl Howell said her court lacks jurisdiction over the matter and ordered her clerk to close the case. The SEC’s rule bars an investment firm from managing a state’s assets for two years if the company, or certain of its executives, make more than a nominal campaign donation to a state official with power over state contracts with investment advisers.

From the States and Municipalities:

California – Jerry Brown Vetoes California Political Ethics Bills

Fresno Bee – David Siders (Sacramento Bee) | Published: 10/1/2014

California Gov. Jerry Brown vetoed key bills that were passed in response to a series of scandals at the Capitol, saying they would further complicate gift and campaign rules without sufficient benefit to the public. Senate Bill 1443 would have reduced to $200 the value of gifts an official can receive from a single source each year, and banned all gifts from lobbyists. Senate Bill 1442 would have required campaign committees to file finance reports four times a year, doubling the current requirement of twice a year. One measure Brown signed was Senate Bill 1441, which bans campaign fundraisers at lobbyists’ homes.

Florida – U.S. Supreme Court to Hear Former Hillsborough Judicial Candidate’s Fundraising Issue

Tampa Bay Times – Jim Saunders (News Service of Florida) | Published: 10/2/2014

The U.S. Supreme Court will take up a Florida case that focuses on whether judicial candidates should be allowed to personally solicit campaign contributions. The Florida Supreme Court this year upheld a ban on such solicitations, reiterating an earlier position that the prohibition helps in “preserving the integrity of the judiciary and maintaining the public’s confidence in an impartial judiciary.” But attorneys for a former Hillsborough County judicial candidate, Lanell Williams-Yulee, asked the U.S. Supreme Court to take up the issue, contending the ban violates First Amendment rights.

Hawaii – Cachola Fined a Record $50,000 for City Ethics Violations

Hawaii Reporter – Malia Zimmerman | Published: 9/27/2014

The Honolulu Ethics Commission fined state Rep. Romy Cachola, a former member of the city council, $50,000 for multiple alleged violations of city ethics laws, including accepting expensive meals and golf outings from lobbyists. The penalty is the largest civil fine ever approved by the commission, which said it was influenced by persistent violations occurring monthly during several years, as well as Cachola’s repeated disregard of a 2003 directive ordering him to not accept gifts from lobbyists in excess of $200.

Missouri – Ferguson Demands High Fees to Turn over City Files

Philadelphia Inquirer – Jack Gillum (Associated Press) | Published: 9/29/2014

The city of Ferguson has demanded high fees to produce copies of records related to the fatal shooting of 18-year-old Michael Brown that, under Missouri law, it could give away free if it determined the material was in the public’s interest to see. Instead, in some cases, the city has demanded high fees with little explanation or cost breakdown. It billed The Associated Press $135 an hour – for nearly a day’s work – merely to retrieve a handful of email accounts since the shooting. Price-gouging for government files is one way that local, state, and federal agencies have responded to requests for potentially embarrassing information they may not want released.

New York – Lobbyist Ethics Training Is Up and Running

Albany Times Union – Rick Karlin | Published: 9/27/2014

Lobbyists in New York are now able to take an online ethics training course that was mandated in a 2011 law. Registered lobbyists are supposed to complete the course by the end of December. While there is not a clear-cut penalty for failing to do so, the Joint Committee on Public Ethics said it will monitor compliance.

Ohio – Panel Refers Rep. Mallory for Ethics Prosecution

Columbus Dispatch – Jim Siegel | Published: 10/1/2014

The Ohio Joint Legislative Ethics Commission recommended state Rep. Dale Mallory face charges for accepting Cincinnati Bengals tickets from lobbyists and failing to disclose the gifts. The commission found Mallory wrongfully accepted a $77 ticket in 2009 and nearly $284 worth of tickets in 2013. Two lobbyists have already pleaded guilty to not reporting that they gave Mallory the tickets. John Rabenold was fined $2,000 for not disclosing gifts to state lawmakers, including a ticket he gave Mallory for a Bengals game in December 2009. George Glover was fined $500 after he did not disclose or keep receipts for a 2013 Bengals ticket he gave to Mallory.

Pennsylvania – Allegheny Authority Bends Limits on Free Tickets for Pro Sporting Events

Pittsburgh Tribune-Review – Aaron Aupperlee | Published: 9/29/2014

The Pittsburgh Tribune-Tribune said the municipal authority that oversees public sports and entertainment venues in Allegheny County routinely violates its policy to limit the number of free tickets it gives to public officials, and it often does not record who uses its seats or luxury suites at games. “People call and they need them for goodwill; I’ll get them and give them to them,” state Sen. Wayne Fontana, board chairperson of the Sports & Exhibition Authority.

Texas – DeLay’s Decade-Long Legal Fight Comes to an End

Houston Chronicle – Lauren McGaughy | Published: 10/1/2014

Texas’ highest criminal court upheld a lower court’s ruling overturning former U.S. House Majority Leader Tom DeLay’s 2010 conviction for money laundering. DeLay had been found guilty of channeling $190,000 in corporate political donations to Republicans running for the Texas Legislature in 2002 as part of a push to redraw congressional district lines in the state. Texas election law prohibits corporate campaign contributions to state candidates. The Court of Criminal Appeals ruled DeLay was not guilty because Travis County prosecutors could not prove he believed the corporate funds he was funneling to state candidates were “criminal proceeds.”

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.

National:

Non-Candidate Spending Increases in State Elections

The Center for Public Integrity – Rachel Baye, Reity O’Brien, Kytja Weir, and Ben Wieder | Published: 9/24/2014

More than 90 non-candidate organizations have spent $55 million to shape races in 30 states, accounting for roughly 19 percent of state-level political ad dollars. Four years ago, such groups spent $50 million and made up only 12 percent of spending. That translates to about 30,000 more ads this cycle from the groups. The increase in spending by non-candidate committees can be traced, in part, to the U.S. Supreme Court’s Citizen United decision, which gave the green light to unions and corporations to spend unlimited funds on ads supporting or opposing candidates.

Secret G.O.P. Records Reveal Corporate Donors Paying for Access to Governors

New York Times – Jonathan Weisman | Published: 9/24/2014

A recent error by the Republican Governors Association (RGA) resulted in the disclosure of exactly the kind of information that political committees given tax-exempt status normally keep secret, namely their corporate donors and the size of their checks. The documents showed many of America’s most prominent companies had poured millions of dollars into the campaigns of GOP governors since 2008. One document listed 17 corporate members of the RGA’s secretive 501(c)(4), the Republican Governors Public Policy Committee, which is allowed to shield its supporters from the public.

Study: Major companies are increasingly disclosing their political spending

Washington Post – Tom Hamburger | Published: 9/24/2014

Top U.S. companies are reporting more details about their political contributions, according to a survey by the Center for Political Accountability. It scored 191 companies on a complex scale that tracked whether they disclose corporate donations to candidates, parties, or trade associations. The center has been leading efforts to require companies to disclose more about their spending. But the push has drawn criticism from business groups, who say more disclosures offer little of value to shareholders.

From the States and Municipalities:

Colorado – Federal Judge Rejects Citizens United Push to Avoid Disclosure Laws

Denver Post – John Frank | Published: 9/22/2014

A federal judge refused to issue an injunction that would have allowed Citizens United to air and advertise a documentary on Colorado politics ahead of the November elections without disclosing funding behind any advertising related to the movie. Citizens United argued it fell under protections for media and its “Rocky Mountain Heist” film did not constitute electioneering communications. Citizens United President David Bossie said his organization would appeal to the 10th U.S. Circuit Court of Appeals.

Connecticut – Rowland, Ex-Connecticut Governor, Is Convicted in Campaign Finance Case

New York Times – Alison Leigh Cowan | Published: 9/19/2014

Former Connecticut Gov. John Rowland, who resigned from office a decade ago in a corruption scandal, was convicted of federal charges that he conspired to hide payment for work on two congressional campaigns. Rowland served 10 months in prison for taking illegal gifts while in office, and now as a repeat offender faces the possibility of a much stiffer sentence. Rowland could have legally worked for a candidate’s campaign and received payment, had it been properly reported. But Rowland’s problem, as U.S. Attorney Christopher Mattei told the jury, was that candidates valued his experience but his criminal history made the association too risky to be revealed.

Georgia – New Ga. Lobbying Rules Still Allow State Legislators to Accept Lavish Summer Travel

The Tribune; Associated Press – | Published: 9/21/2014

An analysis by The Atlanta Journal-Constitution shows lobbyists spent more than $100,000 hosting lawmakers and state officials at roughly two-dozen summertime conferences. Many were held on the coast of Georgia, Florida, and South Carolina during June and July. That spending increased by about 35 percent from 2012, the year before state lawmakers adopted some limits on lobbyist expenditures. But the new law left open a loophole that still allows lobbyists to pay generously when lawmakers travel for work purposes.

Kentucky – Kentucky Election Finance Leader Retiring

WFPL – Phillip Bailey | Published: 9/19/2014

The Kentucky Registry of Election Finance announced that Sarah Jackson will retire as executive director on November 1. The registry appointed budget analyst Rebecca Feland as the interim executive director. Registry Chairperson Craig Dilger said a search for Jackson’s replacement will take several months. “Sarah has been a tremendous asset to the agency and a true professional as executive director; the agency is stronger for it,” said Dilger.

Maine – Gay Donors Missing History in Maine

Politico – Alexander Burns | Published: 9/22/2014

U.S. Rep. Michael Michaud, who is leading Maine’s gubernatorial race six weeks before Election Day, would be the first openly gay candidate ever to become governor of a state. Michaud has gotten to this point with little help from the wealthiest and most influential gay donors in Democratic politics. Some say it is an illustration of the short shrift progressive donors typically give to state-level elections, as well as Michaud’s own status as a new arrival within the gay political community.

North Carolina – North Carolina, in Political Flux, Battles for Its Identity

New York Times – Richard Fausset | Published: 9/22/2014

Unlike other Southern states, which have shifted decidedly rightward in recent years, North Carolina often seems like it is moving in both directions at once. Barack Obama shocked the political world by winning the state in 2008. Two years later, Republicans wrested control of both legislative houses for the first time in more than a century. In a tight race that could decide control of the U.S. Senate, it is Democrats who hold the advantage in registered voters. “It’s a place on the cusp – there’s really a battle going on for the soul of North Carolina,” said Marc Farinella, who was Obama’s 2008 campaign director in the state.

Rhode Island – Groups Challenge Proposed Changes for Those Lobbying Providence City Council

Providence Journal – John Hill | Published: 9/20/2014

Nonprofit groups criticized as burdensome a proposed lobbying ordinance in Providence that would expand disclosure requirements. They focused on one new rule that would define a lobbyist as someone who advocates for an organization or cause for 10 or more hours a year and is paid $2,500 or more for that work. The current standard is 25 hours a year and $2,500. Councilperson Samuel Zurier said a public hearing on the changes will be scheduled.

Rhode Island – Hearing Officer Rules That Corso Lobbied for 38 Studios Deal

Providence Journal – Katherine Gregg | Published: 9/19/2014

A hearing officer hired by the Rhode Island secretary of state’s office ruled attorney Michael Corso should have registered as a lobbyist on behalf of 38 Studios. Secretary of State Ralph Mollis launched the probe in the wake media reports that revealed no one from 38 Studios registered to lobby when a controversial deal to provide the company with state funds was being put together in the Legislature. A contract showed the company pledged to pay Corso $300,000 to interact with government officials, among other duties. The hearing officer set a deadline for Corso to file lobbyist disclosure reports for 2010, or pay a $2,000 fine.

Virginia – McAuliffe Unveils Ethics Panel to Restore Public Trust after McDonnell Convictions

Washington Post – Laura Vozzella | Published: 9/25/2014

Virginia Gov. Terry McAuliffe laid out an ambitious agenda for ethical and political reform in the state, saying it is essential to restore the public’s trust in its government. McAuliffe appointed a bipartisan commission charged with recommending sweeping changes in the laws regarding gifts, campaign contributions, and public disclosure by state officials. The announcement comes less than a month after former Gov. Robert McDonnell and his wife, Maureen, were convicted of corruption.

Wisconsin – Federal Court Overturns Doe Ruling, Sends it Back to State Judges

Milwaukee Journal Sentinel – Jason Stein, Daniel Bice, and Patrick Marley | Published: 9/24/2014

A federal appeals court removed an injunction halting an investigation into whether Wisconsin Gov. Scott Walker’s campaign illegally coordinated with conservative groups on fundraising and spending as he sought to overcome a recall effort. The decision by a panel of the U.S. Court of Appeals for the Seventh Circuit raised the prospect that prosecutors could eventually resume the investigation even as Walker is engaged in a tight battle for re-election. But now the matter returns to Wisconsin’s courts, where a state judge had in effect stopped the inquiry in an earlier ruling, saying he had found no basis for pursuing an inquiry into campaign finance violations.

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.

National:

Wealthy Citizens Have More Clout in State Government, but Stricter Lobbying Rules Can Help Close the Gap, Baylor Study Finds

Baylor University – Terry Goodrich | Published: 9/16/2014

Baylor University political science professor Patrick Flavin found state lawmakers are more attentive to the political opinions of the wealthy than those of poor people when making policy decisions, but stricter regulations on professional lobbyists can help curb this trend and promote more equal representation. “… Disadvantaged citizens do not enjoy the same level of representation among professional lobbyists [as the wealthy], and correspondingly exert less influence over the policy decisions made by elected officials,” said Flavin.

Federal:

Judge Mulls SEC Limits on Political Donations

Politico – Josh Gerstein | Published: 9/12/2014

A federal judge questioned whether two state Republican parties have legal standing to challenge a Securities and Exchange Commission (SEC) rule that puts some restrictions on asset managers when they make campaign contributions. The New York and Tennessee Republican parties filed a lawsuit against the SEC in August over the 2010 rule, arguing it impedes free speech. They are seeking a preliminary injunction against the rule. Howell also said the SEC’s rule, aimed at reining in donations intended to help investment advisers win business from state-controlled endowments or pension funds, was vague, especially when it comes to preventing indirect contributions.

Tommy Boggs Helped Create Modern World of D.C. Lobbying

Politico – Byron Tau and Anna Palmer | Published: 9/15/2014

Thomas H. Boggs, Jr., who was a pioneer in melding the practice of law and lobbying and led the prominent lobbying shop Patton Boggs for many years, has died at age 73. Few people were as acquainted with power and influence as Boggs, whose father was Democratic majority leader in the U.S. House and whose mother served nine terms in Congress. Starting in the 1960s, when lobbying was often a one-man operation or done by a trade association, Boggs helped transform the profession into a multibillion-dollar enterprise that seeks a vast array of public policy goals.

From the States and Municipalities:

Arizona – State Supreme Court to Rule on Campaign Finance Disclosure Requirements

East Valley Tribune – Howard Fischer (Capitol Media Services) | Published: 9/15/2014

The Committee for Justice and Fairness is asking the Arizona Supreme Court to decide when groups running attack ads against candidates have to disclose who is financing the effort. The committee wants the justices to rule that only groups which run commercials specifically asking viewers to vote for or against someone must spell out the source of the money. What the court ultimately decides will govern what voters know about who is behind the attack ads they will see for years to come.

Arkansas – Why Some Say Arkansas’ Ethics Reform Is a Trojan Horse

Governing Magazine – J.B. Wogan | Published: 9/11/2014

Issue 3 on the November ballot in Arkansas would ban lobbyist gifts to state officials, prohibit direct corporate contributions to candidates, and lengthen the time period before former lawmakers can become lobbyists. But those lobbying and campaign finance reforms have received little attention in the campaign, mostly because another provision would extend term limits for state lawmakers. Because the measure would make several changes at once, it has a long, complicated ballot title and the bill itself is 22 pages, with the term-limits portion tucked away on the 16th page. The length and complexity of the measure has invited speculation that its authors intended to obfuscate its impact on term limits.

Colorado – Ted Olson Argues Citizens United Case in Denver Court

Denver Post – John Frank | Published: 9/16/2014

The conservative organization credited – or blamed – with bringing a flood of money into politics argued in federal court it should be allowed to produce and advertise a film that criticizes Colorado Gov. John Hickenlooper without disclosing who paid for it. Attorneys for Citizens United argued “Rocky Mountain Heist” is a news product and the organization itself should be considered a media outlet with the same protections as members of the press. The urgency of the ruling is heightened with the election seven weeks away.

Connecticut – Panel Condemns NU Exec’s Pro-Malloy Solicitation as ‘Offensive’ – But Finds No Violation

Hartford Courant – Jon Lender | Published: 9/16/2014

The State Elections Enforcement Commission dismissed a complaint against Northeast Utilities Chief Executive Officer Thomas May, but not before offering some harsh criticism of the solicitation the state contractor sent to his employees. Connecticut law prohibits state contractors from contributing to state party accounts or the campaigns of statewide candidates. Even though the email solicitation mentioned Malloy’s accomplishments at length, the commission was unable to find May violated the law because the money went to the party’s federal account.

New York – Former Assemblyman Turned Informer Avoids Prison

New York Times – Benjamin Weiser | Published: 9/11/2014

Former New York Assemblyperson Nelson Castro will not serve any time in prison for making false statements because he “helped clean house” in state politics by cooperating in a lengthy corruption probe that resulted in the conviction of another state Assembly member and five others, said a federal judge. Castro began cooperating in 2009 while still a candidate almost immediately after he was told he was facing a perjury charge in a corruption investigation. For two terms in the Assembly, he wore a wire at times as part of his undercover work. He resigned office after his cooperation was revealed last year.

North Carolina – NC’s Political Watchdogs: The State Ethics Commission’s strengths and weaknesses

Carolina Public Press – John Ellston | Published: 9/17/2014

The Carolina Public Press said its review of the North Carolina Ethics Commission’s first seven years of operation found a bipartisan and vigorous effort to enforce ethics laws that is constrained by a lack of resources, strict confidentiality rules, and limited enforcement powers, and burdened by an ever-expanding mandate. The Public Press profiled the commission’s members, detailed the agency’s duties, and assessed what outside observers say are its strengths and weaknesses.

Ohio – Judge: Ohio politicians allowed to lie

USA Today – Chrissie Thompson (Cincinnati Enquirer) | Published: 9/11/2014

A federal judge struck down as unconstitutional an Ohio election law that banned candidates or independent organizations from lying in campaigns. U.S. District Court Judge Timothy Black ruled the law and its enforcement by the state Elections Commission are “inherently flawed” because the statute requires a government agency to decide whether a candidate or organization had lied in a commercial or billboard. “The answer to false statements in politics is not to force silence, but to encourage truthful speech in response, and to let the voters, not the government, decide what the political truth is,” wrote Black.

Texas – Campaigns, Consultants Disregard Ethics Commission Resolution

Houston Chronicle – David Saleh Rauf | Published: 9/11/2014

The Texas Ethics Commission adopted a resolution last year saying that campaigns should not use the agency’s sworn complaint process as a tool to smear an opposing candidate. But the resolution is a nonbinding decree that carries no enforcement muscle. So it appears that strategists from both parties have decided to disregard the sentiment of the commission in favor of trying to drum up headlines against their political rivals.

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.

Federal:

FEC Strikes Deal to Revise Campaign Finance Regulations

The Hill – Benjamin Goad | Published: 9/11/2014

The FEC agreed to amend its campaign spending regulations in response to a pair of U.S. Supreme Court rulings. Commissioners plan to formally approve the new guidelines during an October 9 meeting. One rule would further clarify the parameters of the court’s Citizens United decision and codify them into law. A second rule is meant to reconcile the agency’s regulations with the ruling in McCutcheon v. FEC, which scrapped aggregate contribution limits for individual donors in an election cycle. The FEC will also solicit public comment on various implications of the McCutcheon ruling.

State of Political Consulting: Rapid growth, long hours, new approaches

Politico – Tarini Parti | Published: 9/10/2014

Whether it is polling, media relations, fundraising, direct mail, or digital outreach, political consultants said the permanent nature of campaigns, the growing number of outside groups involved in races, and the different ways voters are now consuming information have transformed the industry, making it not just more profitable than ever but also more challenging. There is a survival-of-the-fittest mind-set within the industry, where consultants are quickly adapting to the evolving political landscape – expanding their staff and capabilities at a rapid pace to stay competitive.

From the States and Municipalities:

Arizona – Clean Elections Commission Determines Horne Used $300,000 Worth of State Employee Time for Campaign

East Valley Tribune – Howard Fischer (Capitol Media Services) | Published: 9/9/2014

Citizens Clean Elections Commission Executive Officer Thomas Collins recommended the commission officially rule that Arizona Attorney General Tom Horne violated campaign finance laws by failing to report more than $300,000 worth of state employee time and office space he used for his re-election as contributions to his campaign. If the commission adopts the recommendation, Horne has the chance to explain why Collins was wrong, repay the money, or negotiate a settlement. The commission may initiate enforcement action if the case is not settled. That could include civil penalties and, at worst, the removal of Horne from office.

Connecticut – Case Dismissed, Even Though It’s Likely You’re Guilty – Ethics Agency Played It Both Ways

Hartford Courant – Jon Lender | Published: 9/7/2014

The Connecticut Office of State Ethics has at times sent a letter to some suspected of violating the ethics law saying the case is being dismissed even though the official likely violated the code, a practice known as a “loud dismissal.” Though the process at this level is confidential, the letter goes into the individual’s personnel file and could reappear in a background check. But now, that action has been curtailed. A lawyer representing an unnamed state employee who received a ‘loud dismissal” sent a letter earlier this year to the Citizen’s Ethics Advisory Board, which advises the ethics office, questioning whether the agency had the statutory authority to issue such a penalty.

Florida – Was Miami-Dade Lobbyist a ‘Patriot’ or ‘Snitch’ in FBI Sting of Local Politicians?

Miami Herald – Jay Weaver | Published: 9/6/2014

When the FBI mounted a sting operation targeting corruption in South Florida – dubbed “Miami Hustle” – it recruited lobbyist Michael Kesti as a key player. Kesti was willing to break ranks with his lobbying brethren, unheard of in Miami-Dade County, which has a long history of insider deals and graft. Kesti said he agreed to play the part as his “patriotic duty” to root out what he sees as systemic corruption in local government. Others, including one of the mayors he helped get indicted last year, describe him in less flattering terms, starting with “paid snitch.”

Georgia – Georgia Ethics Commission Fires Director

Rome News-Tribune – Kate Brumback (Associated Press) | Published: 9/8/2014

Holly LaBerge, the head of the Georgia ethics commission, has been fired. A Superior Court judge had fined LaBerge and the state attorney general’s office $10,000 each for not disclosing documents as part of a lawsuit filed by former commission Executive Secretary Stacey Kalberman, who said she was forced out of her job for investigating complaints against Gov. Nathan Deal. Commission Chairperson Hillary Stringfellow said the judge’s order shows LaBerge’s conduct “fundamentally conflicts with the specific mission and purpose of this commission and therefore with her own duties and responsibilities as executive secretary.”

Georgia – Rule Changes Proposed From State Ethics Commission

Peach Pundit; Staff –   | Published: 9/9/2014

The Georgia ethics commission proposed new rules that would affect the state’s campaign finance and lobbying laws. Commissioners will discuss those possible changes at a September 30 meeting. The rules would, among other provisions, clarify that contributions to political parties and PACs do not count towards the $25,000 annual threshold that triggers registration and reporting. They also would allow one or more lobbyists to split an expenditure provided a single lobbyist does not exceed the limit of $75.

Montana – Nonprofit Wants Montana Campaign Finance Laws Ruled Unconstitutional

Greenfield Daily Reporter – Matt Volz (Associated Press) | Published: 9/5/2014

Montanans for Community Development filed a lawsuit asked a federal judge to strike down as unconstitutional major provisions of the state’s campaign finance law. The nonprofit group also wants to prevent the state from enforcing those laws before this year’s elections. The lawsuit argues the definitions of campaign contributions and expenditures are too vague, and the definition of a political committee is overly broad.

Nebraska – Lt. Gov. Lavon L. Heidemann of Nebraska Steps Down

New York Times – Mitch Smith | Published: 9/9/2014

Nebraska Lt. Gov. Lavon Heidemann resigned from office and ended his candidacy, one day after a judge granted a protection order to keep him away from his sister, who accused him of assault. But because the deadline for being dropped from the ballot has passed, his name might still be listed on the November ballot. Heidemann’s sister, Lois Bohling, said in a sworn statement her brother grabbed her wrists and pushed her out of their mother’s bedroom during a dispute involving farmland and their 84-year-old mother’s care.

New Jersey – ELEC Analysis: Top 25 NJ special interest groups spent $311 million on campaign contributions, lobbying and independent spending over 15 years

PolitickerNJ; Staff –   | Published: 9/10/2014

Labor unions, trade associations, political committees, and other special-interest groups have spent a combined $311 million over the last 15 years in New Jersey trying to influence elections and lawmaking, according to a report released by the state Election Law Enforcement Commission. Labor unions, with $171 million in expenditures, were responsible for much of the overall spending since 1999, the year the state started maintaining the records online. The New Jersey Education Association, the state’s largest teachers union, spent a combined $57 million.

New York – Just Don’t Call These Consultants Lobbyists

Crain’s New York Business – Chris Bragg | Published: 9/7/2014

There is a growing industry of strategic consultants who do not register as lobbyists yet nonetheless have close ties with New York politicians and represent clients with interests before government. These non-lobbyists get many of the lucrative paychecks accorded their registered peers without the scrutiny that comes with mandatory disclosure reports, and it is legal. “It’s a very fine line to walk; you end up having to trust that person, and you put your trust in how they are representing themselves,” said Viveca Novak of the Center for Responsive Politics.

North Carolina – Ethics Disclosure Statements Offline after Privacy Complaints

WRAL – Mark Binker | Published: 9/9/2014

A North Carolina law requires both elected officials and certain appointed policymakers to file forms with the state disclosing their financial interest as a way of avoiding, or at least exposing, potential conflicts between private and public actions. Paper and electronic copies of those forms have long been available upon request, but the state ethics commission’s staff began making them available online July 1. But now, the commission has temporarily shut down the Internet portal due largely to complaints from some of those who have to file the disclosures.

South Carolina – House Speaker Bobby Harrell Indicted on Nine Counts in Corruption Probe

Charleston Post & Courier – Jeremy Borden and Schuyler Kropf | Published: 9/10/2014

South Carolina House Speaker Bobby Harrell was indicted on a slate of campaign finance violations, including allegedly claiming reimbursement for private flights he did not take and using campaign donations to hire an employee for his private insurance business. Harrell faces nine counts, including misconduct in office, false reporting on campaign disclosures, and using campaign funds for personal expenses. The charges endanger Harrell’s reign as speaker, which is among the most powerful roles in a state like South Carolina, where the legislative branch has more power to spend money and set the agenda than the executive branch.

Wisconsin – Judge Orders State Not to Enforce PAC Limits Law

Wisconsin Law Journal – Scott Bauer (Associated Press) | Published: 9/8/2014

U.S. District Court Judge Rudolph Randa ordered the Wisconsin Government Accountability Board not enforce the law limiting how much money candidates can collect from PACs. The ruling came in a lawsuit brought by the CRG Network, a PAC that works to elect conservative candidates. The group argued the limits were a violation of its free speech rights. Randa, in issuing the preliminary injunction, said the group was likely to succeed on that claim.

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.

National:

Voting Restrictions Are Key Variable in Midterm Elections

New York Times – John Harwood | Published: 9/3/2014

After decades of expansion in American voting methods, an estimated one-third of all ballots this year will be cast before the traditional Election Day on November 4. Yet this year, the trend collides with a Republican-led pushback in some states – for reasons of cost-cutting and election integrity or, as the Obama administration and civil rights groups suggest, crimping turnout by Democrats. Various new restrictions on voting, which range from more stringent identification requirements to fewer registration opportunities to curbs on early voting, have been put in place. A critical election variable is whether the new limits will tilt close races.

Federal:

Wealthy Political Donors Seize on New Latitude to Give to Unlimited Candidates

Washington Post – Matea Gold | Published: 9/2/2014

Wealthy political donors have more access than ever to candidates since the ruling in McCutcheon v. Federal Election Commission, which did away with the aggregate contribution limit for congressional candidates. More than 300 donors have seized the opportunity, writing checks at such a furious pace that they have exceeded the old limit of $123,200 for this election cycle, according to data from the Center for Responsive Politics. Together, 310 donors gave a combined $11.6 million more by this summer than would have been allowed before the ruling.

From the States and Municipalities:

Alabama – John Carroll Appointed Acting Ethics Commission Director

Montgomery Advertiser – Brian Lyman | Published: 9/2/2014

John Carroll, a retired federal judge and former law school dean, will serve as acting director of the Alabama Ethics Commission beginning October 1, succeeding Jim Sumner. The commission is still seeking a permanent director for the position, and plans to accept applications until September 30. Any individual selected for the position will have to be confirmed by the state Senate, which is not expected to reconvene until next March.

California – California Lawmakers Send Governor New Gift Rules after Scandals

Los Angeles Times – Patrick McGreevy | Published: 8/29/2014

California lawmakers gave final approval to a bill that reduces to $200 from $440 the value of gifts officials can receive from a single source each year. Senate Bill 1443, which was sent to Gov. Jerry Brown, also bans all gifts from lobbyists. The legislation prohibits officials from accepting certain kinds of gifts from anyone, including tickets to concerts, sports events, and amusement parks; spa services and rounds of golf; and cash and gift cards.

California – Legislative Session Ends with Campaign-Finance Bills Growing out of Senate Corruption Cases

Columbus Republic – Fenit Nirappel (Associated Press) | Published: 8/30/2014

California lawmakers approved two bills aimed at addressing a string of recent scandals. Senate Bill 1442 would increase the frequency of detailed campaign spending reports from twice a year to quarterly. Senate Bill 831 would ban elected officials from requesting payments on their behalf to nonprofit organizations run by family members, a tactic sometimes used in place of campaign contributions. It would also require nonprofit groups that pay for politicians to go on trips to disclose the donors who fund the travel. Both bills now head to the governor’s desk.

Colorado – Federal Lawsuit Challenges McCain-Feingold Disclosure Law

Legal Newsline – David Yates | Published: 9/4/2014

The Center for Competitive Politics filed two lawsuits on behalf of a Colorado think tank, asserting that similar state and federal campaign finance disclosure laws are unconstitutional. The Independence Institute wants to run two ads, one asking U.S. Sens. Mark Udall and Michael Bennett to support a federal sentencing reform bill, and one asking citizens to urge Colorado Gov. John Hickenlooper to initiate an audit of the state Health Benefit Exchange. But the institute claims the Bipartisan Campaign Reform Act, along with a similar Colorado law, effectively prevents the group from raising money for the ads.

Florida – Tallahassee Voters Will Decide Ethics Proposal

Tallahassee Democrat – Jeff Burlew | Published: 9/3/2014

Tallahassee voters will get to decide whether to add an ethics code to the city’s charter in November. The city commission approved the ballot measure after a judge ruled the amendment complied with state law. If approved by voters, the charter amendment would create an ethics and anti-corruption policy, require enactment of an ethics code, establish an ethics board, lower the cap on campaign donations, and allow for limited public financing of campaigns.

Georgia – Judge Issues $20,000 in Sanctions against AG, Ethics Commission Director over Trial Documents

Greenfield Daily Reporter – Christina Cassidy (Associated Press) | Published: 9/3/2014

A judge fined the Georgia attorney general’s office and the executive secretary of the state ethics commission for neglecting to hand over key documents in a whistleblower lawsuit against the commission. Fulton County Superior Court Judge Ural Glanville ordered Holly LaBerge and the attorney general’s office to each pay $10,000 to cover the litigation expenses of the plaintiff, former ethics commission Executive Secretary Stacy Kalberman. “The court is extremely troubled by the behavior of … LaBerge, who has been dishonest and non-transparent throughout these proceedings,” wrote Glanville.

Illinois – Emanuel Signing Order to Boost Contractors’ Minimum Wage Rate

Chicago Tribune – John Byrne | Published: 9/3/2014

Chicago Mayor Rahm Emanuel signed an executive order that requires city contractors and subcontractors to pay employees a $13-an-hour minimum wage. It will apply to city contractors advertised after October 1 and will affect about 1,000 contracted employees, typically landscapers, maintenance workers, security officers, concessionaires, and custodians.

Mississippi – Appeal May Revive Campaign-Spending Law

Courthouse News Service – Sabrina Canfield | Published: 9/4/2014

The state of Mississippi is asking the Fifth U.S. Circuit Court of Appeals to reverse a lower court ruling that found part of a campaign finance law unconstitutional. Under the state law, groups seeking to support or oppose statewide ballot measures must register as a political committee if they receive contributions of more than $200 or spend more than $200 during a calendar year. Opponents argue the $200 threshold is so low it would be impossible for a group of people to run a quarter-page ad in their local newspaper without having to become a political committee.

Rhode Island – Convicted R.I. Hospital Executive Urciuoli Seeks $3.6M in Severance, Trial Costs

Providence Journal – Katie Mulvaney | Published: 9/3/2014

Robert Urciuoli, a former executive at Roger Williams Medical Center who was convicted on corruption charges, is seeking nearly $3.6 million in severance pay and legal costs from the Providence hospital. Urciuoli says in federal court papers he could only be terminated for “cause” under his contract as the hospital’s chief executive. He also said evidence shows his lawyers told him a deal to promote the hospital and a nursing home with former state Sen. John Celona was legal. Urciuoli served a three-year prison sentence for buying Celona’s influence. Celona pleaded guilty and also served prison time.

Virginia – Ex-Governor McDonnell and Wife Convicted After Corruption Trial

New York Times – Trip Gabriel | Published: 9/4/2014

A federal jury found former Virginia Gov. Robert McDonnell and his wife, Maureen, guilty of public corruption. Robert McDonnell was convicted of 11 corruption-related counts, though acquitted of lying on loan documents. The former first lady was convicted of eight corruption-related charges, along with obstruction of justice. Maureen McDonnell was acquitted of lying on a loan document. The jury found the McDonnells lent the prestige of the governor’s office to businessperson Jonnie Williams Sr. in exchange for $177,000 in gifts and loans. The five-week trial at times resembled a soap opera, as the McDonnells endured an embarrassing dissection of their relationship.

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.

From the States and Municipalities:

Alabama – Alabama Ethics Commission Wants Interim Director as Search for Permanent Hire Begins

Greenfield Daily Reporter – Kim Chandler (Associated Press) | Published: 8/27/2014

The Alabama Ethics Commission voted to offer the position of acting director to former Cumberland Law School Dean John Carroll. Current Director Jim Sumner is retiring on October 1. The ethics panel also began the search for a permanent director. Commission Chairperson Larkin Martin said her colleagues want an acting director in place because of the time it will take to make a permanent hire.

California – Calls Grow for Wider Inquiry into Bidding on L.A. Unified iPad Project

Los Angeles Times – Howard Bloom and Teresa Watanabe | Published: 8/26/2014

Faced with criticism about the planning and rollout of a $1 billion effort by the Los Angeles Unified School District to provide iPads to all students, Superintendent John Deasy suspended future use of a contract with Apple. The move follows disclosures that Deasy and his top deputy had close contact with executives at Apple, which makes the iPad, and Pearson Education, the company providing the curriculum on the tablets. In addition, an internal district report found the implementation of the iPad plan was beset by a flawed bidding process.

California – Ed Lee Campaign Faces Dilemma over Alleged FBI Contribution

San Francisco Chronicle – John Coté | Published: 8/27/2014

An undercover FBI agent allegedly arranged for $20,000 to be donated to San Francisco Mayor Ed Lee’s campaign in a transaction that possibly violated the city’s campaign finance law. Lee’s campaign treasurer sent a letter to the U.S. attorney’s office saying he has been trying to get information from the office about the alleged contributions. But the U.S. attorney’s office said the information will not be forthcoming because it is under court seal in the complex public corruption case of suspended state Sen. Leland Yee.

Florida  – Florida Judge Deals a Blow to Democrats on Districting

New York Times – Lizette Alvarez | Published: 8/22/2014

A Florida judge allowed the use of voting districts favoring Republicans in November while approving revised congressional boundaries for subsequent elections. Circuit Court Judge Terry Lewis ruled earlier that the election map was improperly drawn and ordered the Legislature to revise the districts to address “gerrymandering” in two of them. While voting-rights groups argued a new map should go into effect in 2014, Lewis said in his ruling that holding special elections this year for the districts “is not an appropriate remedy under the circumstances.” The new map would instead be in place for 2016 elections.

Iowa – Former Aide to Michele Bachmann Pleads Guilty over Campaign Finance Misdeeds

Minneapolis Star Tribune – Corey Mitchell | Published: 8/27/2014

Former Iowa Sen. Kent Sorenson pleaded guilty to federal charges he accepted money from then-U.S. Rep. Ron Paul’s 2012 presidential campaign to switch his endorsement from U.S. Rep. Michele Bachmann, who was also running for the GOP nomination, and then lying to investigators about the money. Sorenson has been at the center of accusations he was paid for his endorsement, first by the Bachmann campaign and then by the Paul campaign. Sorenson was seen as a key endorsement ahead of the 2012 Iowa caucuses as a popular figure in the emerging tea party movement.

Maine – Maine Ethics Panel Allows Cutler to Raise as Much as Party Candidates

Portland Press Herald – Steve Mistler | Published: 8/27/2014

The Maine Commission on Governmental Ethics and Election Practices decided gubernatorial candidates will be able to collect larger contributions from donors this fall. The commission unanimously voted to allow all candidates to accept up to $3,000 per donor over the course of this year’s election cycle. The decision levels the playing field for independent candidate Eliot Cutler, who was previously able to receive only half what major party candidates have been able to collect over the course of their primary and general elections. But it also impacts the campaigns of Gov. Paul LePage and Mike Michaud by allowing them to bring in double the amount from any new donors this fall.

North Carolina – Former NC House Speaker Brubaker Ranked Top Lobbyist at General Assembly in 2013

The Tribune; Associated Press –   | Published: 8/26/2014

Former House Speaker Harold Brubaker is the most influential lobbyist in the General Assembly, according to rankings from the North Carolina Center for Public Policy Research. After his 2012 resignation, Brubaker expanded his law firm, Brubaker & Associates, to include lobbying work. In 2014, his roughly two dozen clients include health care companies such as GlaxoSmithKline and Blue Cross Blue Shield of North Carolina, as well as the North Carolina Association of Realtors and Pepsico.

Pennsylvania – After Ethics Violations, LCB Changes Code of Conduct

Philadelphia Inquier – Angela Couloumbis | Published: 8/27/2014

The Pennsylvania Liquor Control Board (LCB) revised its code of conduct for employees and implemented new guidelines for firms doing business with the agency. It explicitly prohibits employees from accepting anything of value, under any circumstances, from vendors doing business or seeking to do business with the LCB. For vendors, the new rules primarily ban them from giving gifts to LCB employees. But it also states the agency could “from time to time” audit vendors to ensure they are complying.

Pennsylvania – Former Aide’s Guilty Plea Raises Questions for U.S. Rep. Chaka Fattah

Philadelphia Inquier – Jeremy Roebuck, Mark Fazlollah, and Craig McCoy | Published: 8/27/2014

Gregory Naylor, a former aide to U.S. Rep. Chaka Fattah, pleaded guilty to lying to federal agents and attempting to conceal the misuse of campaign funds during Fattah’s 2007 mayoral bid in Philadelphia. Naylor admitted he conspired with his boss – identified in court filings only as “Elected Official A” – to pay off debts with grant funds and political contributions funneled through a series of nonprofits and consulting firms. Prosecutors would not confirm the identity of the elected official identified in Naylor’s plea documents, but their description of the politician overlaps with several key details of Fattah’s 10-term congressional career.

South Carolina – Lawmakers Question Decision in Benjamin Ethics Case, Seek to Strengthen Law

The State – Cliff LeBlanc | Published: 8/27/2014

The South Carolina Ethics Commission ruled state law did not require Columbia Mayor Steve Benjamin to disclose an all-expenses paid trip to Florida paid for by a developer interested in doing business in the city. House Majority Leader Bruce Bannister said he and most legislators interpret the reporting provision of the law to require disclosure of a trip like the one Benjamin took. Because of the commission’s decision, Bannister said the House will revisited that provision as the General Assembly tries again next year to update the law.

Texas – Ethics Commission Takes Aim at Texas Dark Money

Houston Chronicle – David Saleh Rauf (San Antonio Express News) | Published: 8/21/2014

The Texas Ethics Commission moved forward with a measure to reveal secret campaign contributors despite a pending federal lawsuit by a conservative group over whether the agency has the authority to regulate dark money disclosure. The commission presented a draft proposal to require a nonprofit to disclose donors if 25 percent or more of its expenditures can be classified as politically motivated. It would also require disclosure if political donations account for more than 25 percent of the group’s total contributions in a calendar year. The commission will accept public comments on the proposal for at least 30 days.

Wisconsin – Emails Show Bigger Fund-Raising Role for Wisconsin Leader

New York Times – Adam Nagourney and Michael Barbaro | Published: 8/22/2014

Gov. Scott Walker personally solicited millions of dollars in contributions for the issue-advocacy group Wisconsin Club for Growth, lawyers for the special prosecutor investigating him said in court papers. The documents form much of the basis for prosecutors’ theory that Walker’s campaign and conservative groups illegally cooperated to help him and other Republicans during recall elections. The investigation has pulled back the curtain on the ways politicians and their aides seek to get around the welter of state and national campaign finance restrictions to accommodate donors.

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.

From the States and Municipalities:

California – Lawmakers Pass Bills to Outlaw Lobbyists’ Gifts, Disclose Actors Used in Campaign Commercials

Columbus Republic; Associated Press –   | Published: 8/18/2014

The California Assembly approved a measure that would lower the gift limit to elected officials from $440 to $200 and prohibit them from accepting free entry to professional sports and entertainment events, golf tournaments, spa treatments, and amusement parks. Senate Bill 1443 would outlaw gifts from lobbyists. It now goes back to the Senate for approval of minor amendments.

California – Panel Wants L.A. to Look at Using Prizes to Boost Voter Turnout

Los Angeles Times – David Zahniser | Published: 8/16/2014

With fewer than a fourth of voters showing up for recent local elections, the Los Angeles Ethics Commission voted to recommend that the city council consider a cash-prize drawing as an incentive to vote. Federal law prohibits payment for voting, but Ethics Commission member Jessica Levinson, who is also a law school professor, says that statute would not apply to elections without federal races on the ballot. California law prohibits money or gifts for votes for a particular candidate or measure, or payment to stay away from the polls altogether.

Colorado – Citizens United Suing Colorado over ‘Rocky Mountain Heist’ Funders

Denver Post – Joey Bunch | Published: 8/14/2014

Citizens United filed a lawsuit against Colorado Secretary of State Scott Gessler in federal court. The Virginia-based conservative group is finishing a movie called “Rocky Mountain Heist,” about those who have influenced Colorado’s political swing to the left over the past decade, calling out advocacy groups and politicians, likely including Gov. John Hickenlooper and U.S. Sen. Mark Udall, who are in tough races this fall. In June, Deputy Secretary of State Suzanne Staiert ruled the group would need to disclose the movie’s financiers under state campaign laws. The organization contended it deserved the same free-speech protections as traditional media.

Florida – Suspended Miami Lakes Mayor Michael Pizzi Is Found Not Guilty

Miami Herald – David Ovalle and Jay Weaver | Published: 8/14/2014

Suspended Miami Lakes Mayor Michael Pizzi was acquitted in a federal corruption case in which he was accused of accepting bribes from undercover FBI agents. Pizzi was accused of accepting $6,750 in payments between 2011 and 2013 in exchange for his help in obtaining federal grant money for both Miami Lakes and the nearby town of Medley, where he was the city attorney. The agents, pretending to be businesspeople, told Pizzi they intended to keep the hundreds of thousands of dollars in grant money for themselves. Pizzi’s lawyers portrayed him as honest and the victim of entrapment by overzealous FBI agents looking to make a high-profile arrest.

Indiana – Officials Defend Exceptions to Indiana Ethics Rules That Were Meant to Prevent Conflicts of Interest

Indianapolis Star – Ryan Sabalow | Published: 8/16/2014

Indiana’s ethics laws require that former state employees take at least a year off before working as a lobbyist or going to work for companies they once regulated. But an exception to the law allows public employees to circumvent the “revolving-door” rules. That exception: ask your former boss to grant you a waiver. The waiver is binding and does not require the approval of the state’s Ethics Commission. Other states such as Washington and Connecticut, which have earned top rankings by good-government groups for their “revolving-door” restrictions, do not allow waiting periods to be waived.

Massachusetts – Galvin to Launch Inquiry into Lobbyist

Boston Globe – David Scharfenberg | Published: 8/21/2014

Massachusetts Secretary of State William Galvin launched an inquiry into the activities of lobbyist John Brennan, who is a former state lawmaker. Attorney General Martha Coakley alleges the Brennan Group collected $370,000 in improper lobbying fees from the Franciscan Hospital for Children through a contingency fee. State law bars contingency agreements. In an agreement with Coakley’s office, the Brennan Group made no admission of guilt but agreed to repay Franciscan $100,000 of the disputed lobbying fees. “The agreement raises more questions than it answers,” said Galvin.

New Mexico – Duran, in Turnaround, OKs King’s Contested Campaign Contributions

Santa Fe New Mexican – Steve Terrell | Published: 8/14/2014

New Mexico Secretary of State Dianna Duran reversed her office’s initial finding that donations received by Democratic gubernatorial candidate Gary King violated the state’s campaign contribution limits. Facing a state Supreme Court hearing on the matter, Duran wrote in a letter to King that she no longer considered the donations in question to be impermissible. She said the decision was made after she weighed the arguments of King, the state’s attorney general.

New York – Bill Seeks More Disclosure for Certain Campaign Spending

Capital New York – Sally Goldenberg | Published: 8/20/2014

A bill that would mandate more information about independent expenditures be made public is expected to pass the New York City Council and be signed into law by Mayor Bill de Blasio. The legislation requires independent expenditures to list their top three donors on campaign literature they mail to voters. The information would also have to be presented on advertisements. It would not apply to those who give less than $5,000 in independent spending because they are not required to report their donors to the Campaign Finance Board.

Oklahoma – Ethics Commission to Consider Fees for Training

KGOU; eCapitol –   | Published: 8/20/2014

Under a proposed rule, the Oklahoma Ethics Commission would be able to charge registration fees to lobbyists, principals, PACs, and candidate committees. The commission would be required to publish the fees annually on July 1 of each year beginning in 2015. The proposed amendment will be the subject of a public hearing, and a possible vote during the commission’s September meeting.

Pennsylvania – U.S. Court Lifts Ban on Campaign Donations by Phila. Police Officers

Philadelphia Inquirer – Chris Hepp | Published: 8/20/2014

The U.S. Third Circuit Court of Appeals ruled Philadelphia police officers should be allowed to donate money to their union’s PAC. The ruling strikes down a ban enacted in 1919. The appeals court said the city had failed to show the prohibition, which applies to no other city employees, was effective in stemming political influence and corruption within the department, which was its original intent.

South Carolina – S.C. House Speaker Bobby Harrell Announces Grand Jury Probe Has Ended

Charleston Post & Courier – Cynthia Roldan, Jeremy Borden, and Schuler Knopf | Published: 8/16/2014

A grand jury investigation of South Carolina House Speaker Bobby Harrell has ended without charges and state Attorney General Alan Wilson has recused himself from the case, with the matter now in the hands a local prosecutor, according to Harrell’s office. A complaint alleged Harrell had improperly used campaign funds and had used his influence to obtain a state permit for his pharmaceutical business. Harrell has denied any impropriety.

Texas – Gov. Rick Perry of Texas Is Indicted on Charge of Abuse of Power

New York Times – Manny Fernandez | Published: 8/15/2014

A grand jury indicted Texas Gov. Rick Perry on two felony counts, saying he abused his office and used a veto threat to coerce Travis County District Attorney Rosemary Lehmberg to resign. The grand jury considered an ethics complaint that alleged Perry abused his veto power when he cut funding for the state’s anti-corruption unit, which is part of the Travis County district attorney’s office. The indictment comes as Perry, who is stepping down at the end of his term after 14 years in office, attempts to rehabilitate his political image as he considers another presidential campaign.

Washington – Ethics Panel Takes Preliminary Vote on Limiting Free Lobbyist Meals for Lawmakers

Columbus Republic – Rachel La Corte (Associated Press) | Published: 8/19/2014

Members of the Washington Legislature could get no more than 12 free meals a year from lobbyists under a plan tentatively approved by the Legislative Ethics Board. The board voted to define, for the first time, what current law means when it prohibits public officials from accepting free meals on more than “infrequent occasions.” The rule would not take effect until a final vote later this year on the overall proposal surrounding rules concerning meals.

Wisconsin – GOP Lawmakers Recruit Lobbyists for Door-to-Door Visits

Milwaukee Journal Sentinel – Patrick Marley | Published: 8/15/2014

Wisconsin Assembly leaders are recruiting lobbyists to help with door-to-door campaigns aimed at boosting the party’s majority in the chamber. The effort is called “Leggiepalooza,” a take-off on the Lollapalooza music festivals. Some lobbyists said they were uncomfortable with being asked to help with door knocking because they feared they could have a harder time passing bills if they did not participate. Others said they saw no problem with it.

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.

Federal:

GOP Looks to Shake Loose More Wall Street Cash

Politico – Patrick Temple-West | Published: 8/13/2014

The Securities and Exchange Commission rule limiting some campaign contributions from investment firms violates free speech, two state Republican parties said in a lawsuit seeking to overturn the regulation. The rule bars an investment firm from managing a state’s assets for two years if the company, or certain of its executives, make more than a nominal donation to a state official with power over state contracts with investment advisors. The regulation forces investment advisers to make “an impermissible choice [between] exercising a First Amendment right and retaining the ability to engage in professional activities,” wrote the New York and Tennessee Republican parties.

Media Matters’ David Brock Expands Empire

Politico – Kenneth Vogel | Published: 8/14/2014

Democratic operative David Brock is now the chairperson of Citizens for Responsibility and Ethics in Washington (CREW). Brock’s arrival is part of a broader shakeup at CREW, with Melanie Sloan, the executive director and longtime leader of the organization, announcing she will step down. Brock confirmed the basics of the shakeup in an interview. The reconfigured CREW will add a more politically oriented arm, expand its focus into state politics and donor targeting, and will operate in close coordination with Brock’s fleet of nonprofits and super PACs: Media Matters, American Bridge, and the American Independent Institute.

White House Eases Lobbyist Ban

The Hill – Megan Wilson | Published: 8/12/2014

The Obama administration rolled back part of its ban on lobbyists serving in government. Under a new rule, registered lobbyists whom Obama had previously barred from serving on government advisory boards may now participate if they are representing companies or groups and not acting on their own behalf. The change was published in the Federal Register and took effect immediately. It comes after an appeals court rejected the administration’s efforts to dismiss a lawsuit by six lobbyists who challenged the ban’s constitutionality after being excluded from a trade advisory committee. The lobbyists said their First Amendment rights to petition the government had been violated.

From the States and Municipalities:

Arizona – How Public Financing Changed Politics in Arizona

Vox.com – Andrew Prokop | Published: 8/13/2014

Arizona voters in 1988 approved the public financing of campaigns. Under the Clean Elections Act, candidates for office are given public funds as long as they do not raise other money and abide by spending limits. Though reformers hoped this would help get money out of politics, some have argued clean elections model could actually lead to increased polarization and dysfunction. Michael Miller, a political science professor and author of the book Subsidizing Democracy, surveyed over 1,000 candidates for office in states with public financing systems about their experience. In an interview, Miller discusses Arizona’s law and his research.

Florida – Businessman Settles Ethics Complaint in Connection with Miami Beach Convention Center

Miami Herald – Joey Flechas | Published: 8/13/2014

The Miami-Dade Commission on Ethics and Public Trust said businessperson John Portman settled an ethics charge against him by agreeing to pay $2,000. Portman met with several Miami Beach commissioners from January 2013 to July 2013 to talk about a project to redo the Miami Beach Convention Center, but did not register as a lobbyist until July. He was part of a group of architects and developers, Portman CMC, who were in the race for the convention center deal. Portman’s attorney told the ethics panel that Portman did not intentionally violate the city’s lobbyist-registration law because, as the company’s owner and principal, he did not know he had to register.

Florida – Florida Legislators Approve New Redistricting Map but New Challenge Is Expected

Miami Herald – Mary Ellen Klas and Michael Van Sickler | Published: 8/11/2014

The Florida Legislature approved a new congressional map that slightly modifies seven districts in an effort by the Republican-controlled body to comply with a judge’s order to redraw the lines without taking into account partisan advantage. A hearing on the map and its potential impact on the 2014 election is set for August 20, less than a week before the scheduled primary elections. Democratic-aligned groups, who took the map to court, are expected to argue the new boundaries do not make any significant changes and the lines were once again drawn behind closed doors.

Georgia – State Ethics Commission Hires 2 New Staff Lawyers

The Daily Report – Kathleen Baydala Joyner | Published: 8/12/2014

Robert Lane and Bethany Whetzel joined the Georgia Government Transparency and Campaign Finance Commission as staff attorneys. The two are tasked with analyzing complaints against elected officials. The pair join the agency in the wake of the commission settling several whistleblower lawsuits brought by former employees who claimed they were fired for investigating Gov. Nathan Deal.

Illinois – Former Red Light Camera CEO Indicted, Federal Probe Expands

Chicago Tribune – David Kidwell | Published: 8/13/2014

Former Redflex Traffic Systems Chief Executive Officer Karen Finley was indicted on corruption charges in a federal investigation of one of the nation’s largest red-light camera programs. Finley is accused of funneling nearly $600,000 in cash and other benefits to a now-retired Chicago official, John Bills, for his help in landing the firm $124 million in city contracts. Bills was charged in May with one count of bribery. In the new indictment, he faces additional charges, including extortion and filing false income tax returns. Also named the indictment is Martin O’Malley, a former Redflex company liaison. He faces a bribery charge for allegedly passing much of his $2 million Redflex compensation to Bills.

Maine – Federal Judge Hears Arguments on Maine Campaign Finance Donation Limits for Independents

Lewiston Sun Journal – Scott Thisle | Published: 8/12/2014

A federal judge heard arguments in a case challenging a Maine law that allows major-party candidates to accept $1,500 contributions from individuals for both the June primary and the general election, but does not restrict when that money must be spent. Independent gubernatorial candidate Eliot Cutler can collect a maximum of only $1,500, which his supporters claim in the lawsuit is unconstitutional. Jamie Kilbreth, the attorney representing Cutler’s supporters, said Maine’s law was clearly unfair. He also said it was in conflict with several U.S. Supreme Court and Circuit Court decisions in other states, including one from Colorado earlier this year.

North Carolina – McCrory Misstated Duke Energy Holdings, Sold Stock after Coal-Ash Spill

Raleigh News & Observer – J. Andrew Curless and Craig Jarvis | Published: 8/13/2014

North Carolina Gov. Pat McCrory filed a new ethics and economic disclosure that now makes clear he owned at least $10,000 of Duke Energy stock on the last day of 2013, reversing disclosure filings he made in April and May. The governor sold the stock after the Duke Energy plant in Eden spilled 39,000 tons of coal ash, into the Dan River. The crisis generated national news, put a spotlight on McCrory’s ties to Duke, where he worked for about 29 years, and prompted the governor and legislators to propose laws about cleaning up coal ash that Duke Energy says could cost the company as much as $10 billion over the next 30 years. A major reform bill has not passed the General Assembly.

Pennsylvania – Pa. Limits on PAC Donations Voided Due To Citizens United

Law360.com – Kelly Knaub | Published: 8/14/2014

U.S. District Court Judge William Caldwell struck down a Pennsylvania law that banned corporations and labor groups from donating more than $250 to expenditure-only political committees. Caldwell granted General Majority PAC’s bid to convert a preliminary injunction issued in March into a permanent one, agreeing with the group that the state law violated the First Amendment in the wake of the U.S. Supreme Court’s Citizen United decision.

Rhode Island – Fung Filmed Campaign Ad in Ohio

WJAR – Parker Gavigan | Published: 8/13/2014

A television ad for Rhode Island gubernatorial candidate Allan Fung says his state is “open for business” and showcases Fung in a diner. But the diner is in Ohio. The restaurant has been the setting for political commercials in the past, but the candidates are usually campaigning for office in Ohio or for president, said Michael Pappas of Tommy’s Diner in Columbus. “You’re trying to tout the fact that you believe in Rhode Island and business should come to Rhode Island but you travel all the way to Ohio to film your television commercial; so that just says to me, ‘What are you thinking?'” said Wendy Schiller, a professor at Brown University.

Rhode Island – Welcome to Rhode Island, America’s Least Polarized State

New York Times – Josh Barrow | Published: 8/13/2014

Political scientists Boris Shor and Nolan McCarty analyzed state legislative voting records from 1996 to 2013 and found Rhode Island had the least ideological difference between the typical Republican and Democratic lawmakers. It is common for Republican officials in heavily Democratic Northeastern states to be moderates. What makes Rhode Island stand out is the number of conservatives within its Democratic legislative supermajority. The median Democrat in Rhode Island was more conservative than in all but 13 state Legislatures.

Texas – Court: Texas PAC campaign waiting period unconstitutional

KROI – Brandon De Hoyos | Published: 8/13/2014

The U.S. Fifth Circuit Court of Appeals struck down a provision in the Texas Election Code that imposes a 60-day waiting period and 10-contributor requirement on PACs before they could spend more than $500. Groups defined by the Texas Ethics Commission as a “specific purpose” committee – organizations formed to support identified candidates – were not subject to a waiting period. The appeals court upheld a separate requirement that PACs must register before exceeding $500 in expenditures. The judges also rejected a narrow challenge to the state’s ban on corporate contributions.

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

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

Federal:

Tea Party Group Loses Appeal on Corporate PAC Limits

BusinessWeek – Andreew Zajac | Published: 8/5/2014

A three-judge panel of the U.S. Court of Appeals in Washington, D.C. kept in place limits on political donations by corporate PACs. The judges turned aside a challenge by Stop This Insanity Inc., an Arizona-based not-for-profit organization created to advance the values of the tea party movement. The group sought to allow corporate PACs to accept funds from the general public and to eliminate a $5,000-a-person annual limit on contributions earmarked for independent support or opposition to candidates.

From the States and Municipalities:

Alabama – Powerhouse GOP Group Snared in Money Scheme

Politico – Alexander Burns | Published: 8/4/2014

The Republican State Leadership Committee (RSLC) has spent tens of millions of dollars to flip state legislative chambers and redraw the congressional map in Republicans’ favor, and is poised to spend millions more this fall. A report by a Washington law firm detailed an investigation into alleged misconduct by multiple RSLC officials during the crucial 2010 election cycle. It charged that national leaders conspired improperly with the leader of the Alabama Republican Party to use the RSLC as a pass-through for controversial Indian tribe donations, essentially laundering money from the gaming industry by routing it out of state and then back into Alabama.

Florida – Deadline Set to Redraw Voting Map in Florida

New York Times – Frances Robles | Published: 8/1/2014

Circuit Court Judge Terry Lewis ordered Florida lawmakers to revise a map of 27 congressional districts by August 15, raising the possibility of delayed elections in November. The judge previously found the current map violated a state prohibition of gerrymandering. Lewis said until a new map is in place, it will be “difficult, if not impossible” to evaluate whether an election with new district lines is feasible before the new Congress takes office in January. The primary is set to take place August 26. A hearing, if needed, is set for August 20 to hear objections to the revised map or a proposed election schedule.

Maryland – Despite 2012 Law, Casino Interests and Md. Candidates Remain Intertwined

Washington Post – John Wagner | Published: 8/4/2014

Maryland’s ban on casino owners making campaign contributions is limited and has done little to stop the flow of funds associated with one prolific donor – William Rickman, Jr., owner of the Casino at Oceans Downs. Rickman has stopped giving as an individual and through the company he set up to operate the casino. But money has been donated to candidates through a separate Rickman company that owns the racetrack where the casino was built, and through a company established to provide food and beverage services there, among other avenues. Critics say the contributions tied to Rickman offer a prime example of how campaign finance reform often falls short of its goal: donors simply find other ways to give.

Massachusetts – Gov. Deval Patrick Signs Super PAC Disclosure Law

MassLive.com – Shira Schoenberg | Published: 8/4/2014

Massachusetts Gov. Deval Patrick signed a bill into law that increases individual campaign contribution limits for state candidates and requires additional disclosures for super PACs. Beginning immediately, the law requires that all groups making independent expenditures to disclose their donors within seven days, or within 24 hours if it is 10 days or less before an election. Beginning in January, the law raises the amount an individual can contribute to a state candidate from $500 to $1,000.

Massachusetts – State Fines Super PAC that Backed Walsh

CommonWealth Magazine – Paul McMorrow | Published: 8/6/2014

The two super PACs that supported Boston Mayor Martin Walsh in the closing days of the 2013 election are settling claims they violated Massachusetts campaign finance law. The groups behind $500,000 in pro-Walsh television ads, One New Jersey and One Boston, have agreed to pay $30,000 in fines. The money for the ads originated with the American Federation of Teachers, something that did not become known until after the election.  The Massachusetts Office of Campaign and Political Finance found One New Jersey failed to identify itself as a political committee and One Boston failed to disclose the true origins of its donations.

Mississippi – Miss. Appeals Federal Judge’s Block of Small-Group Political Spending Laws; Hearing Sept. 3

Greenfield Reporter; Associated Press –   | Published: 8/4/2014

The state of Mississippi is asking a federal appeals court to overturn a lower court ruling that part of its campaign finance law creates an unconstitutional burden for people or groups that spend at least $200 to support or oppose a ballot initiative. Opponents of the law argue the threshold is so low it would be impossible for a group of people to run a quarter-page ad in their local newspaper without having to become a political committee. State Attorney General Jim Hood said the disclosure requirements are “substantially related to the sufficiently important government interest” of educating voters about those who seek to influence their vote.

Tennessee – Conservatives See Potential in Tennessee Judicial Race

New York Times – Alan Blinder | Published: 8/5/2014

Most elections to retain state Supreme Court justices are bland affairs, but this year, Tennesseans have been inundated with mailings, venomous campaign ads, and more than $1 million of local and out-of-state money for the battle over three of the five seats on the court. The big push against the incumbents has come from Lt. Gov. Ron Ramsey. His PAC gave the largest recorded campaign contribution, more than $400,000, to a conservative group opposing the justices. Ramsey’s efforts have drawn national groups into the fight, like the Charles and David Koch-affiliated Americans for Prosperity, the State Government Leadership Foundation, and the Republican State Leadership Committee.

Utah – Utah Lobbyists Required to Wear Badges at Capitol

Charlotte Observer – Michelle Price (Associated Press) | Published: 8/1/2014

As of August 1, lobbyists in Utah must don name tags featuring the word “lobbyist” whenever they are trying to influence public officials at the Capitol. The law also requires lobbyists to disclose who they are working for before advocating to an official. Frank Pignanelli, who has been a lobbyist for the last 17 years after spending a decade as a lawmaker, said wearing badges is irritating and unnecessary. “I just think it’s silly and it’s not necessary and it smacks of a nanny state; our forefathers didn’t cross the plains so we can stick badges on lobbyists,” said Pignanelli.

Vermont – Searchable Campaign Finance System Goes Live

Burlington Free Press – Terri Hallenbeck | Published: 8/5/2014

Vermont now has a searchable computer system that will make it easier to track how much money candidates are raising and spending. Candidates, political parties, and PACs may start using it for campaign finance reports due later in August. Those who prefer the old paper system may continue using it this year, said Secretary of State Jim Condos. The new system becomes mandatory in January.

Wisconsin – Another Blow to Campaign Finance Disclosure in Wisconsin?

Captal Times – Jack Craver | Published: 8/1/2014

The Wisconsin Government Accountability Board (GAB) recently told a number of electioneering groups that they are welcome to disclose their spending activity and donors, but are not required to. That is a change from previous years, when organizations that expressly advocated for the election or defeat of a candidate have been required to periodically submit reports that listed their donors and spending activity. Groups that engaged solely in issue advocacy were not required to disclose. Now, however, the GAB is allowing even organizations that engage in a certain amount of express advocacy to forego disclosure.

Wyoming – Federal Court Rules in Favor of Third-Party Fundraising in Wyoming

Casper Star-Tribune – Trevor Graff | Published: 8/6/2014

A federal judge ruled a provision of Wyoming law that restricted third-party candidate fundraising is unconstitutional and cannot be enforced. Jennifer Young, who is running for secretary of state as a Constitution Party candidate, and one of her supporters sued the state. They challenged a campaign finance law that limited fundraising for candidates whose parties do not participate in primary elections. The contested provision barred third-party candidates from accepting political contributions before the primary election. Major party candidates faced no such restriction.

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

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

National:

Move on for DRPA to Reveal Vendors’ Political Donations

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

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

Federal:

Koch-Backed Seniors Group Low-Balling Election Spending?

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

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

Mini-Mega Donors Dominate Downtown Giving

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

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

Outside Money Drives a Deluge of Political Ads

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

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

From the States and Municipalities:

Arkansas – Tough Road for Ethics, Term Limits Item

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

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

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

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

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

Illinois – Alderman Pushes through Watchdog Limits Week after Being Probed

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

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

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

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

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

Massachusetts – 3 Guilty in Probation Case

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

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

Massachusetts – Massachusetts Lawmakers OK PAC Disclosure Bill

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

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

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

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

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

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

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

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

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

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

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

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

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

Federal:

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

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

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

Leadership War Stymies Senate Mission

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

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

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

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

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

From the States and Municipalities:

California – Political Shakeup Looms in California

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

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

Delaware – Delaware Governor Signs Campaign Finance Reform Bills into Law

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

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

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

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

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

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

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

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

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

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

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

New York – Cuomo’s Office Hobbled State Ethics Inquiries

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

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

New York – JCOPE Donor-Disclosure Exemption Rejections Are Overturned

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

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

Pennsylvania – Former Traffic Court judges Cleared on Main Charge

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

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

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

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

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

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

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

National:

America’s Shifting Statehouse Press

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

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

Federal:

Hobbled IRS Can’t Stem ‘Dark Money’ Flow

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

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

From the States and Municipalities:

Alaska – APOC Rejects Complaint That Parents Should Be Registered Lobbyists

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

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

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

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

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

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

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

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

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

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

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

Indiana – Slippery Government Ethics Rules Raise Calls for Reforms

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

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

Kentucky – Meet the Nation’s Most Honest Politician

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

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

Maryland – Excuses Abound for Md. Campaign Report Failings

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

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

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

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

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

Pennsylvania – Ethics Board to Consider Stricter Campaign Finance Regulations

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

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

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

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

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

Tennessee – Carr Gave Loan to Company of Political Supporter

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

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

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

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

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

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

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

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

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

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