National:

General Dynamics to No Longer Contribute to Political Organizations

Washington Business Journal – Jill Aitoro | Published: 4/22/2014

General Dynamics announced it will no longer make contributions to political organizations or nonprofit groups that in turn give to campaigns. The decision comes in response to a shareholder proposal that requests that the company’s board of directors authorize an annual report disclosing lobbying policy and procedures, and membership in and payments to tax-exempt organizations that write and endorse model legislation.

Political Attack Ads, Often Negative, Try Instead to Accentuate the Positive

New York Times – Ashley Parker | Published: 4/17/2014

Some of the best-known super PACs and outside political groups are making an effort to cast the candidates they support in an appealing way instead of solely attacking opponents. Already this year, 16 percent of Americans for Prosperity’s spots have been positive; in 2012, the group did not run a single one. The shift is the product of several factors, such as the renewed hope that positive commercials can break through the advertising clutter and the increasing prevalence of stock footage made public by campaigns that makes producing positive ads easier.

Federal:

Following Sebelius Phone Call, Foundation Donated $13M to Obamacare Outreach Group, Report Says

Washington Post – Jason Millman | Published: 4/21/2014

U.S. Health and Human Services Secretary Kathleen Sebelius last year approached five organizations seeking money or technical help for Enroll America, a nonprofit working to increase participation in the federal health law, according to a review by the Government Accountability Office. Republicans had criticized Sebelius for making a funding request to outside groups, while the Obama administration defended the action, contending Congress refused to provide enough funding for Affordable Care Act outreach.

Justice Stevens Suggests Solution for ‘Giant Step in the Wrong Direction’

New York Times – Adam Liptak | Published: 4/21/2014

Former U.S. Supreme Court Justice John Paul Stevens said the court had made a disastrous wrong turn in its recent string of campaign finance rulings. In an interview with The New York Times, Stevens talked about what he called a telling flaw in the opening sentence of the ruling in McCutcheon v. Federal Election Commission, and filled in some new details about the behind-the-scenes maneuvering that led to the Citizens United decision.

From the States and Municipalities:

California – Ethics Panel Wants More Public Funding Available to Candidates

Los Angeles Times – Soumya Karlamangla | Published: 4/17/2014

The Los Angeles Ethics Commission recommended the city’s public campaign finance program increase the matching funds available to candidates. The commission also announced it would no longer enforce aggregate contribution limits on individuals giving to city and school board candidates as a result of a recent U.S. Supreme Court ruling. City caps on what donors can give to individual candidates will remain in effect. Those range from $700 to $1,300 per election, depending on the office.

Connecticut – DGA Challenges Connecticut’s Campaign Finance Restrictions

Connecticut Mirror – Mark Pazniokas | Published: 4/23/2014

The Democratic Governors’ Association sued the state of Connecticut, saying its laws on political spending are unconstitutionally broad and limit the ability of political groups to buy independent ads backing candidates. The lawsuit said the state unfairly treats independent money spent on ads and other political messages by the national group as contributions to particular candidates, and thus subject to campaign finance limits.

Missouri – Missouri Lawmakers Take Trips to Israel, California, New Orleans – On the Lobbyists’ Dime

St. Louis Post-Dispatch – Kevin McDermott | Published: 4/21/2014

Industry and special interest groups spent more than $200,000 in the last three years on trips for Missouri lawmakers, according to The St. Louis Post-Dispatch. Records show the travel-related spending in many cases included airline tickets, hotel rooms, meals, and convention fees. While lobbyist spending is legal in Missouri, critics say the practice can create conflicts-of-interest when legislators vote on important issues. Defenders of lobbyist spending say paying for trips that provide lawmakers with valuable information is not the same as plying legislators with perks.

New York – Judge Strikes Down NY Limits on Donations to ‘Super PACs’

Reuters – Joseph Ax | Published: 4/24/2014

U.S. District Court Judge Paul Crotty struck down New York’s limits on donations to independent PACs as unconstitutional. The judge said the statutes could not survive First Amendment scrutiny in light of recent landmark U.S. Supreme Court decisions that have lessened restrictions on political donors. Under Crotty’s ruling, super PACs can now raise unlimited funds, though committees that coordinate with parties or candidates are still subject to limits.

North Carolina – Feds Eye Ex-Mayor Cannon’s Campaign in Charlotte Corruption Probe

Charlotte Observer – Fred Clasen-Kelly and Ames Alexander | Published: 4/12/2014

As the FBI builds its public corruption case against former Charlotte Mayor Patrick Cannon, investigators are taking a close look at campaign finance records he filed with the Mecklenburg County elections board. But a Charlotte Observer review of Cannon’s campaign records since 1999 found reports with misleading, inaccurate, and missing information that makes it difficult to tell where he got much of his money.

Ohio – Lobbyists Could Spend More on Ohio Lawmakers under Proposed Legislation Billed as Ethics Reform

Cleveland Plain Dealer – Jeremy Pelzer (Northeast Ohio Media Group) | Published: 4/23/2014

New legislation, if enacted, would make the most significant changes to Ohio’s ethics rules in two decades. Lobbyists would get to spend twice as much on lawmakers and disclose fewer expenses under the proposed bill. The measure, which Republican sponsors say they intend to introduce in May, also includes increased transparency and accountability measures, such as requiring random audits of public officials’ financial disclosure forms and posting all such forms online.

Pennsylvania – Pa. Legislative Sting’s First Suspects Were Caught, Not Targeted, Supporters of the Aborted Probe Say

Harrisburg Patriot-News – Charles Thomspon | Published: 4/16/2014

A legislative sting operation quashed by Pennsylvania Attorney General Kathleen Kane was much broader than originally described, and the undercover informant who recorded many conversations reached out to a racially diverse group of Democratic and Republican state lawmakers, lobbyists, and city officials, according to sources. Kane has argued that one reason she decided not to pursue the investigation was that there was an appearance of racially-based targeting of potential suspects.

Tennessee – Candidate is Treasurer of PAC Raising Money for Him

The Tennessean – Michael Cass | Published: 4/20/2014

Donors invited to a recent fundraiser for state House candidate Troy Brewer were told they could avoid disclosure on campaign finance reports by writing their checks to Leaders of Tennessee, a PAC Brewer serves as treasurer. Giving to a specific candidate through a PAC to mask the source of the funds is illegal, subject to a fine of up to $10,000. “You can’t use an intermediary to get around disclosure,” said Drew Rawlins, executive director of the state Bureau of Ethics and Campaign Finance.

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:

G.O.P. Campaign Outreach Tool: Gun sweepstakes

New York Times – Jeremy Peters | Published: 4/17/2014

Online gun sweepstakes are one of the fastest growing and most useful tools for campaign outreach in the 2014 Republican primaries. Across the country, from a race for sheriff in California to the U.S. Senate primary in South Carolina, candidates are using high-powered pistols and rifles as a lure to build up their donor lists and expand their base of support. But as a lot of candidates have learned, giving a gun away is not easy.

Federal:

For Hillary Clinton and Boeing, a Beneficial Relationship

Washington Post – Rosalind Helderman | Published: 4/13/2014

The State Department under former Secretary of State Hillary Clinton bypassed ethics guidelines to take a $2 million donation from Boeing, just a month after Clinton helped the company secure a multi-billion dollar contract with Russia. Clinton was attempting to resuscitate the dismal fundraising for the privately-sponsored U.S. pavilion planned for the 2010 World’s Fair in Shanghai. State Department officials had told planners to skip soliciting some firms with major business ties to the government, including Boeing, to avoid the appearance of a conflict-of-interest.

McCutcheon Lawyer Brings New Campaign Finance Case

Politico – Byron Tau | Published: 4/16/2014

Dan Backer, the attorney who won a landmark ruling when the U.S. Supreme Court threw out the overall limit on how much any donor can give to federal campaigns each election cycle, has filed a lawsuit looking to strike some of the restrictions still on the books. The latest lawsuit seeks to open the door for more money to flow from a PAC to a candidate or party committee. The suit objects to federal restrictions on transfers out of PACs based on the amount of time they have been registered.

From the States and Municipalities:

Connecticut – Rowland Indicted In Two Alleged Campaign Finance Schemes

Hartford Courant – Edmund Mahoney and Jon Lender | Published: 4/10/2014

Former Connecticut Gov. John Rowland, who resigned 10 years ago in a corruption scandal that sent him to prison, was indicted recently on charges he tried to hide his role in two congressional campaigns, one of them involving a sham contract written to conceal $35,000 he was paid for political advice to candidate Lisa Wilson-Foley. Rowland is also accused of pitching a similar phony consulting deal to Mark Greenberg during his unsuccessful 2010 race for Congress.

Florida – Builders, Lobbyists among Big Donors to Mayor’s Ball

South Florida Sun Sentinel – Andy Reid | Published: 4/12/2014

Donation records show lobbyists, developers, and others potentially vying to do business with local government were some of the biggest donors at the Palm Beach County Mayor’s Ball fundraiser. Many local elected officials, led by Palm Beach County Mayor Priscilla Taylor, were the main attraction at the fundraiser to help the homeless. It also tested new ethics rules which seek to limit opportunities for attendees at such events to curry favor with elected officials by contributing to a cause they support.

Kansas – Brownback Vetoes Bill Raising Spending Threshold for Lobbyist Registry

Topeka Capital-Journal; Staff –   | Published: 4/11/2014

Kansas Gov. Sam Brownback vetoed Senate Bill 99, which would have raised the expenditure threshold triggering the requirement to register as a lobbyist from $100 to $500. A news release from the governor’s office said the bill was vetoed in the interest of promoting continued transparency in government.

Kentucky – Kentucky Rep. Jim Gooch Threw Women’s Underwear on a Dinner Table, Statehouse Staffers Allege

WFPL – Jonathan Meador | Published: 4/14/2014

Two legislative staff members who filed sexual harassment charges against former Kentucky Rep. John Arnold said they were also subjected to crude behavior by state Rep. Jim Gooch at the Southern Legislative Conference. Cassaundra Cooper and Yolanda Costner said Gooch approached a group they were sitting with, pulled a pair of panties out of his pocket, and tossed them on the table. Gooch said his actions were harmless and the two women are retaliating against him.

Maryland – State Won’t Enforce $10,000 Limit on Campaign Contributions

Baltimore Sun – Luke Broadwater | Published: 4/10/2014

Maryland election officials said they would not enforce the state’s $10,000 limit on aggregate campaign contributions during a four-year election cycle in the wake of a landmark U.S. Supreme Court ruling. The State Board of Elections announced that no person may donate more than $4,000 to any individual campaign, but may give that amount to an unlimited number of candidates.

New Jersey – Former Watchdogs Accuse Christie of Interfering with State Ethics Agency

Newark Star Ledger – Salvador Rizzo | Published: 4/13/2014

Three former New Jersey Ethics Commission officials are accusing Gov. Chris Christie’s office of unprecedented interference with an agency set up to be free of political influence. They say Christie pushed the commissioners to replace the executive director at a time when she was investigating a member of his own staff, thus crossing a line no other governor had before. The Christie administration called the charges without merit and denied any interference with the commission.

New Mexico – Controversial Audio Leaked of Governor and Her Staff

KRQE – Gabrielle Burkhart | Published: 4/16/2014

Leaked audio recordings reveal New Mexico Gov. Susana Martinez used profanity and offensive names to describe political opponents during her 2010 campaign. The tapes were part of an unflattering profile of Martinez by Mother Jones magazine. Martinez’s re-election campaign sent an email supporters noting she had referred to her general election opponent, then-Lt. Gov. Diane Denish, “using the B-word four years ago in a private conversation with close advisers.”

New York – U.S. Attorney Criticizes Cuomo’s Closing of Panel

New York Times – William Rashbaum and Susanne Craig | Published: 4/9/2014

Preet Bharara, the U.S. attorney in Manhattan, took control of confidential records of the commission probing public corruption that New York Gov. Andrew Cuomo shut down following a budget deal with the Legislature. Bharara’s move on the Moreland Commission files was motivated by his interest in the unfinished probes, unexplored leads, and abrupt close to business of the panel that Cuomo or his aides reportedly interfered with through back channels.

Oklahoma – Oklahoma Secondary School Activities Association is Focus of Ethics Query

The Oklahoman – Nolan Clay | Published: 4/13/2014

The state Ethics Commission voted to investigate the Oklahoma Secondary School Activities Association (OSSAA) for alleged violations of lobbying disclosure rules. Commissioners acted after The Oklahoman reported the association has provided free football and basketball playoff tickets to legislators for years. Records show the OSSAA has not reported those gifts to the Ethics Commission as required by law.

Texas – With Eyes on 2016, Perry Is Mired in the Past

New York Times – Manny Fernandez | Published: 4/16/2014

A judge seated a grand jury to look into the threat that Texas Gov. Rick Perry carried out to veto funding for the Public Integrity Unit under Travis County District Attorney Rosemary Lehmberg. Perry last year said he would veto money for the unit, which prosecutes wrongdoing by public officials, unless Lehmberg resigned in the wake of a drunken-driving arrest. Texans for Public Justice filed a complaint with prosecutors over the threat, contending Perry abused his power.

Washington – Ethics Board Hears Call to End Free Meals for Lawmakers

The Olympian – Brad Shannon | Published: 4/15/2014

Washington lawmakers can accept free meals on an “infrequent’ basis during the course of doing their jobs. But the law it does not say what is infrequent. The Legislative Ethics Board held a public hearing to get comments on a proposal to clarify the statue. In addition, a staff proposal going before the Public Disclosure Commission would raise the threshold for itemizing spending on lawmakers from $25 for an event to $50.

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

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

National:

States Look Harder at Rules on Gifts to Lawmakers

Philadelphia Inquirer – Amy Worden | Published: 4/6/2014

News that four state lawmakers from Philadelphia were caught on tape allegedly taking cash or gifts from a lobbyist has stoked new calls for reform. Pennsylvania is not alone. Organizations that monitor ethics laws nationwide say the last decade has brought tighter state laws involving gift-giving, lobbying, and conflict-of-interest, some driven by similar scandals.

Federal:

Big Donors Fear Shakedown after Decision

Politico – Anna Palmer and Tarini Parti | Published: 4/2/2014

The U.S. Supreme Court’s ruling that the limit on an individual’s overall campaign contributions infringed on First Amendment rights cleared the way for donors to give the maximum amount to as many candidates and political parties as they wish during a two-year election cycle. The decision means a common excuse for brushing off fundraising requests – that potential donors, many of them lobbyists,  have already “maxed out” their contributions under the cap – is now moot.

From the States and Municipalities:

Arizona – Ariz. Legislators Don’t Disclose Gifts, Resist Change

Arizona Republic – Mary Jo Pitzl | Published: 4/8/2014

Disclosure is not a comfortable topic at the Arizona Capitol, where four years ago the Fiesta Bowl scandal erupted over 28 current and former lawmakers accepting lavish trips and college-football game tickets. Since then, despite proposals to clarify disclosure rules, nothing has changed. State law requires elected officials to disclose gifts they received that were worth $500 or more. But that is not strictly followed, according to an Arizona Republic review of the annual reports. At least nine lawmakers did not initially report trips they took in 2013.

California – Suspended Senators Leave Millions of Constituents Short on Representation

Sacramento Bee – Jeremy White | Published: 4/6/2014

The legal troubles roiling Sacramento have left millions of constituents without the elected representatives they sent to the Capitol to advocate and vote for their interests. Three senators fighting criminal cases were suspended from office. When lawmakers are stripped of their most basic and potent tool for shaping policy – a vote on legislation – the constituents are also, in a sense, disenfranchised.

Delaware – Lobbying Fee Proposed to Pay for Oversight

Wilmington News Journal – Jonathan Starkey | Published: 4/9/2014

Legislation will be introduced in Delaware that would require lobbyists to pay an annual registration fee to help fund the state Public Integrity Commission. The bill would require lobbyists to pay the fee for each client they represent. Another measure filed recently would impose a fee for lobbyists who file disclosure reports late.

Georgia – Ethics Chief in Georgia Wins Suit over Ouster

Athens Banner Herald – Kate Brumback (Associated Press) | Published: 4/5/2014

A jury ruled former state ethics commission Executive Secretary Stacey Kalberman was unfairly forced from that job as retribution for investigating Georgia Gov. Nathan Deal’s 2010 campaign, and ordered the state to pay her $700,000. Kalberman’s lawyers tried to show the decision to cut her salary by $35,000 and to eliminate an aide’s job were a response to the pair’s desire to issue subpoenas for records in the investigation. Attorneys for the commission tried to establish the agency’s budget was in crisis and that was what motivated the cuts.

Indiana – Rep. Eric Turner, Facing Ethics Probe, Has Long and Deep Ties to Nursing Home Companies

Indianapolis Star – Tony Cook | Published: 4/4/2014

An Indiana House ethics committee is set to probe Rep. Eric Turner’s role in quashing legislation that would have halted new nursing home development and helped his son’s company. An Indianapolis Star review of Turner’s personal business interests found he has a stake in at least a half dozen companies that have been engaged in building, leasing, or investing in nursing home properties. The Star also found Turner did not list some of the companies on financial disclosure statements.

Iowa – Supreme Court Declines to Hear Iowa Campaign Finance Challenge

Reuters – Lawrence Hurley | Published: 4/7/2014

The U.S. Supreme Court declined to hear a challenge to an Iowa law that prohibits campaign donations from corporations but allows them from unions. By opting not to hear the case, the justices left intact an Eighth U.S. Circuit Court of Appeals ruling from June 2013 that upheld the ban.

Minnesota – Minnesota’s Limits on Campaign Donations to Be Challenged

Minneapolis Star Tribune – Rachel Stassen-Berger | Published: 4/8/2014

For decades, Minnesota law has said campaigns can raise 20 percent of their cash from lobbyists, PACs, and donors who give large amounts. After candidates hit that limit, they only can accept lesser amounts from subsequent contributors. Opponents say the “first come, first served” law is an unconstitutional limit of free speech, and the libertarian Institute for Justice will file a lawsuit challenging the statute.

Ohio – Ohio House Approves Eliminating Rule on Corporate Political Spending after Lengthy Debate

Cleveland Plain Dealer – Jeremy Pelzer (Northeat Ohio Media Group) | Published: 4/9/2014

The Ohio House passed legislation that would abolish a state rule restricting corporate political spending. Under the rule, corporations have to identify themselves in political ads and disclose money they spend in support of candidates. It also bars political spending made independently of campaigns by foreign-owned corporations and companies that recently received government contracts. House bill 483 now goes to the Senate.

Pennsylvania – Pa. Senate Passes Bill to Ban Cash Gifts to Legislators

Philadelphia Inquirer – Amy Worden | Published: 4/9/2014

The Pennsylvania Senate unanimously approved a bill that bans cash gifts to lawmakers and other elected and appointed officials in state and local government. The Senate also approved unanimously passed an ethics rule change for the chamber that carries the same provisions on cash and cash-like gifts. The only difference between the two is the bill caries the weight of the law so violators could be prosecuted. The ethics rule does not; it calls for a civil penalty.

Pennsylvania – Sources: U.S. prosecutors made no judgment on sting case

Philadelphia Inquirer – Craig McCoy and Angela Couloumbis | Published: 4/8/2014

The Philadelphia Inquirer reported federal officials never came to a final conclusion about the merits of a suspended legislative sting operation before Pennsylvania Attorney General Kathleen Kane asked them to halt that review. Kane, after revelations she decided to abandon the case in which several officials were caught on tape accepting cash and other gifts from an informant posing as a lobbyist, had said her decision had been endorsed by federal law enforcement officials who she has not identified by name.

South Carolina – SC Governor, AG Candidates Collected Excess Campaign Cash

The State – Andrew Shain | Published: 4/5/2014

An analysis by The State showed candidates for governor and attorney general in 2010 received $336,345 in campaign contributions above South Carolina’s legal limits. While the excessive donations represent a fraction of the amounts raised by these candidates, the newspaper said its analysis of state Ethics Commission data points to how campaigns can fail to follow campaign finance rules without getting caught by regulators.

Virginia – Va. Gov. Terry McAuliffe Wants Lobbyists to Report Gifts to Lawmakers’ Families

Columbus Republic – Alan Suderman (Associated Press) | Published: 4/8/2014

Virginia Gov. Terry McAuliffe amended an ethics bill that passed the General Assembly in the wake of a gifts scandal that led to corruption charges against former Gov. Bob McDonnell. McAuliffe’s proposed changes would require lobbyists to report what they spend on gifts and entertainment for both lawmakers and their families. Lawmakers will have to approve the governor’s changes.

Wisconsin – GOP’s Mike Ellis Caught on Recording Talking of Illegal Fundraising

Milwaukee Journal Sentinel – Patrick Marley and Daniel Bice | Published: 4/10/2014

A secretly recorded video produced by a conservative activist shows state Senate President Mike Ellis talking about creating and raising money for a committee to run negative ads against his Democratic opponent, which would be illegal for a candidate to do in Wisconsin. Ellis issued a statement acknowledging the conversation but said he learned the next day the proposal was illegal and did not pursue 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.

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:

New G.O.P. Bid to Limit Voting in Swing States

New York Times – Steven Yaccino and Lizette Alvarez | Published: 3/29/2014

Some swing states under Republican control are enacting new restrictions on registering and voting that go beyond recent voter identification requirements. The bills, laws, and administrative rules shake up fundamental components of state election systems, including the days and times polls are open and the locations where people vote.

Federal:

Supreme Court Strikes Down Overall Political Donation Cap

New York Times – Adam Liptak | Published: 4/2/2014

The U.S. Supreme Court freed wealthy donors to give more money directly to congressional candidates. The conservative majority struck down aggregate limits that barred political donors from giving more than $123,000 in an election cycle to candidates running for seats in the House or Senate. The court said this limit violated the free-speech rights of the donors, and it was not needed to prevent corruption of the political process. The justices noted donors must still abide by rules that prevent them from giving more than $2,600 per election per candidate.

From the States and Municipalities:

Alabama – Wren Resigns

Montgomery Advertiser – Kala Kachmar and Brian Lyman | Published: 4/1/2014

Alabama Rep. Greg Wren resigned and pleaded guilty to a misdemeanor ethics violation in a deal that will secure his cooperation with a corruption investigation at the Capitol. Court documents said Wren, an insurance agent by trade who served as chairperson of the Joint Legislative Medicaid Committee, tried to insert language in the state budget that would have given American Pharmacy Cooperative an edge in certain Medicaid contracts. At the same times, management with the cooperative helped Wren secure a contract with RxAlly for consulting worth $24,000.

California – Case against State Sen. Yee Raises Fundraising Questions

San Francisco Chronicle – Melody Gutierrez and Carla Marinucci | Published: 3/31/2014

Much of the money donated to California lawmakers comes from groups or individuals with pending business before the Legislature. The recent arrest of state Sen. Leland Yee prompted several lawmakers to suggest it is time to revisit campaign finance reform to fix inadequacies in the law or to, at the very least, stop politicians from using campaign donations to pay for their legal defense following criminal charges.

Connecticut – Co-Conspirators’ Guilty Pleas Make John Rowland a Target

Connecticut Mirror – Mark Pazniokas | Published: 4/1/2014

A former congressional candidate and her husband pleaded guilty in a scheme to set up a phony contract to hide the role played in the campaign by former Connecticut Gov. John Rowland, who resigned a decade ago in a corruption scandal. Prosecutors said Lisa Wilson-Foley, Brian Foley, and Rowland entered into an unlawful conspiracy in 2011 to make illegal contributions to Wilson-Foley. Rowland was paid about $35,000 for services to the campaign. The payments originated with Foley and constituted campaign contributions but were not reported to the FEC.

Delaware – Judge Grants Injunction Sought by Conservative Group Challenging Delaware Campaign Finance Law

Greenfield Daily Reporter – Randall Chase (Associated Press) | Published: 3/31/2014

A federal judge ruled in favor of Delaware Strong Families in its challenge to a 2012 state law requiring groups that spend $500 or more during an election period on third-party advertisements to disclose the source of donations. The judge issued a preliminary injunction that halts this reporting requirement.

District of Columbia – Councilwoman Bowser Defeats Incumbent Gray in D.C. Mayoral Primary

Washington Post – Mike DeBonis and Aaron Davis | Published: 4/1/2014

District of Columbia Councilperson Muriel Bowser won an upset victory in the Democratic primary for mayor in a race that turned on the integrity of the incumbent, Vincent Gray. Only three weeks before the election, Gray was comfortably ahead in the polls when a donor pleaded guilty to illegally pumping nearly $700,000 into Gray’s campaign four years ago. The donor said the mayor had participated in the plot. Gray denied knowledge of the under-the-table effort on his behalf, but overnight, a listless race became a referendum on the mayor’s credibility.

Georgia – Trial Begins in Lawsuit against Georgia Ethics Commission

Marietta Daily Journal – Christina Cassidy (Associated Press) | Published: 4/1/2014

A jury will decide whether they believe the claims brought by former state ethics commission Executive Secretary Stacey Kalberman in a wrongful termination lawsuit, who says she was forced out her job in an effort to stifle an investigation of Georgia Gov. Nathan Deal, or side with state attorneys who argue she left after her salary was reduced by 30 percent for budgetary reasons in 2011 and it was unrelated to the governor’s ethics probe.

Illinois – NRA Lobbyist Breaks Hunting Law, Then Lobbies to Change It

Chicago Sun-Times – Dave McKinney | Published: 4/1/2014

Todd Vandermyde, the National Rifle Association’s Illinois lobbyist, was fined $120 last December for breaking a state hunting law. A month later, he worked with House Minority Leader Jim Durkin to rewrite the law he broke. “If I … changed the law because I got a ticket, people would be screaming bloody murder; I don’t think it’s any different when someone with the level of influence and access that he has does it, too,” said Rep. Kelly Cassidy.

Kentucky – 2014 Changes Will Strengthen Kentucky Ethics Law

Russellville News-Democrat & Leader – George Troutman (Legislative Ethics Commission) | Published: 4/3/2014

Kentucky lawmakers gave final approval to House Bill 28, which makes significant changes to the lobbying statute, including a “no cup of coffee” rule, meaning lobbyists and their employers will be prohibited from buying a meal, or even a cup of coffee, for an individual legislator, candidate, or the spouse or child of a lawmaker or candidate. In this opinion piece, George Troutman of the Legislative Ethics Commission delineates the reforms, and the positive effects he believes will ensue if Gov. Steve Beshear signs the measure into law.

Missouri – Pledge Asks Missouri Lawmakers to Refuse Gifts from Lobbyists

Columbia Tribune – Rudi Keller | Published: 3/30/2014

Missouri Rep. John Wright is calling on lawmakers to sign a pledge promising not to accept gifts from lobbyists. Last year, lobbyists purchased almost $1 million worth of meals, trips, golf outings, and sports tickets for lawmakers, including tickets to the World Series and University of Missouri football and basketball games. “Most of the people here are good people, but a lot of bad habits have developed and there is a culture of lobbyist gifts and a culture of entitlement that needs to be completely reset,” said Wright.

Montana – Commissioner Says Senate Majority Leader Art Wittich Broke Campaign Laws

The Daily Journal – Matt Volz (Associated Press) | Published: 4/1/2014

Montana Commissioner of Political Practices Jonathan Motl concluded Senate Majority Leader Art Wittich violated the law by coordinating with Western Tradition Partnership and other entities to accept illegal corporate donations in his 2010 primary election campaign. Motl asked a state judge to weigh his findings and decide whether Wittich’s actions merit removal from office and from the 2014 election ballot.

New York – Capitol Corruption Panel’s Demise Angers Watchdogs

New York Times – Jesse McKinley and Thomas Kaplan | Published: 3/31/2014

Ethics provisions attached to the state budget signed into law by New York Gov. Andrew Cuomo disbands the Commission to Investigate Public Corruption, which was formed last July and given a broad mandate to restore public trust in government. Cuomo said the reforms he wanted would be accomplished by changes to campaign finance reporting requirements and bribery laws, and the public financing of elections in this year’s race for state comptroller.

Pennsylvania – Pa. House Leaders Impose Ban on Most Cash Gifts

Philadelphia Inquirer – Mark Scolforo (Associated Press) | Published: 4/2/2014

Legislative leaders adopted a new ethics rule that prohibits members of the Pennsylvania House from accepting cash gifts, although money from specified close family members and non-lobbyist friends is allowed. A spokesperson for House Speaker Sam Smith said the policy change was made in response to reports in The Philadelphia Inquirer that four House members accepted payments from a lobbyist who was part of a sting operation.

Wisconsin – Lobbyist Bill Draws Sharp Reactions

WisconsinWatch.org – Bill Leuders | Published: 4/1/2014

Senate Bill 655, which was signed into law recently by Wisconsin Gov. Scott Walker, allows lobbyists to start making personal donations the day candidates can circulate petitions for office, which is April 15. Under the previous law, they could not make any contributions until June 1. The bill has been assailed for both its process and its substance. Meanwhile, some lament that this dissent led to it being watered down.

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:

IRS Rule Would Limit Advocacy Over Nominees

USA Today – Gregory Korte | Published: 3/24/2014

The IRS says a nominee for the U.S. Supreme Court or Cabinet secretary should be considered a “candidate” for federal office and is drafting rules to limit how nonprofit groups advocate for or against such nominees. The change in defining a candidate is part of an effort by the Obama administration to clarify how much political activity certain nonprofits can engage in, following last year’s revelation that IRS agents had held up tax-exempt applications for tea party groups.

From the States and Municipalities:

California – FBI: California Sen. Leland Yee took bribes, trafficked guns

Sacramento Bee – Laurel Rosenhall and Jeremy White | Published: 3/26/2014

California Sen. Leland Yee has been charged with conspiring to traffic in firearms and public corruption as part of a major sting operation spanning the Bay Area. A criminal complaint alleges Yee did favors for an undercover FBI agent in exchange for campaign contributions. Prosecutors said Yee also offered to facilitate a meeting between the undercover agent and an arms dealer, and discussed the types of weapons the agent might need.

Colorado – Colorado Marijuana Regulators Switching Sides to Work for Industry

Denver Post – John Ingold | Published: 3/21/2014

At least three officials at the state agency in Colorado that regulates marijuana businesses have found work doing cannabis industry consulting after leaving the department. The officials say they adhered to ethics rules in switching from the regulators to the regulated, and an expert said the moves are not necessarily a conflict, noting such public-to-private switches are common in many regulated industries. But the moves do show the increasing legitimization of the marijuana industry. And they have caused concern among remaining state officials, who say the moves could send the wrong message to the public.

Connecticut – Philly Flyers Owner: His $10,000 to CT Dems not ‘pay to play’

Connecticut Mirror – Mark Pazniokas | Published: 3/24/2014

Three self-reported complaints were recently accepted by the State Elections Enforcement Commission, all in relation to campaign contributions that donors fear could run afoul of Connecticut’s sweeping ban on donations from contractors. A one-year ban on additional state business is a potential penalty for a principal or employee making a prohibited contribution. Connecticut law places the burden for knowing the statute on the donors, not the campaigns or political committees that are the recipients.

Florida – GOP Insiders Incensed, Fascinated by Tirades of Gov. Rick Scott’s Fundraiser

Tampa Bay Times – Steve Bousquet | Published: 3/26/2014

Billionaire Mike Fernandez was co-finance chairperson of Florida Gov. Rick Scott’s campaign, gave $1 million to his re-election effort, and helped raise much more by opening two of his homes to wealthy Republican donors. Fernandez sat near the first family at the State of the State speech before everything fell apart with his resignation followed by leaked e-mails filed with frustration and armchair quarterbacking, a rare public display of campaign dirty linen.

Nevada – Conservative Group to Pay Fine in Nevada 2010 Case Involving Sandoval Ads

Reno Gazette-Journal – Sandra Chereb (Associated Press) | Published: 3/26/2014

A group that ran hundreds of television advertisements supporting Brian Sandoval for governor in 2010 has agreed to a $40,000 fine for failing to register as a PAC in Nevada. The Alliance for America’s Future, a Virginia group that supports Republican candidates, and the office of Secretary of State Bob Miller reached a settlement on his suit against the organization. Miller said the civil fine is the largest ever imposed for a campaign finance violation in Nevada.

New Jersey – Christie Bridge Scandal: Internal report clears governor, calls for Port Authority restructuring

Newark Star Ledger – Ted Sherman | Published: 3/27/2014

New Jersey Gov. Chris Christie did not know of his top aides’ plan for a politically motivated traffic jam on the George Washington Bridge, according to lawyers hired by the Christie administration to investigate the “Bridgegate” scandal. But while clearing Christie and his senior staff, the report urged the appointment of a chief ethics officers within the governor’s office. And it called for a restructuring of the Port Authority of New York and New Jersey.

North Carolina – Mayor Cannon Resigns after Corruption Arrest

Charlotte Observer – Mark Washburn, Michael Gordon, and Jim Morrill | Published: 3/27/2014

Patrick Cannon resigned as mayor of Charlotte, North Carolina after he was arrested on public corruption charges, as federal law enforcement officials alleged he accepted a trip to Las Vegas, use of a luxury apartment, and more than $48,000 in cash in exchange for helping smooth out municipal obstacles for undercover agents posing as investors. Cannon had been in the mayor’s office only since early December.

Pennsylvania – With Lawmakers Caught on Tape Accepting Cash, Fresh Calls for Reform

Philadelphia Inquirer – Craig McCoy and Angele Couloumbis | Published: 3/24/2014

State senators are proposing bills to ban Pennsylvania lawmakers from accepting cash gifts. Lloyd Smucker said the legislation was prompted by stories about an aborted sting investigation by the attorney general’s office that captured five Philadelphia politicians, including four state legislators, accepting cash or money orders on tape. Smucker said he was surprised the state allows lawmakers to accept cash gifts, as long as they report them on their annual financial-disclosure forms.

Rhode Island – Few Clues about What Prompted Federal, State Authorities to Raid Rhode Island Statehouse

Columbus Republic – Michelle Smith (Associated Press) | Published: 3/25/2014

Federal and state authorities have refused to comment on the target of their investigation since a raid on Rhode Island Rep. Gordon Fox’s office and home. Fox resigned as House speaker the next day and said he would not seek re-election, but he did not directly address the probe. In his legal practice, Fox performed loan closings and that work got him into trouble with the state Ethics Commission after he failed to report more than $40,000 for work he did for a Providence economic development agency.

Texas – Conservative Activist Michael Quinn Sullivan Fights Lobbyist Label

Dallas Morning News – David Barer | Published: 3/24/2014

Michael Sullivan is the brash leader of the influential Empower Texans, and he is in a battle with the state Ethics Commission over his influence at the Capitol. The commission could stamp Sullivan as a lobbyist and hem in his political activities, but first, its members want to know the sources of the money that props up his nonprofit corporation. Critics contend Sullivan relies on “dark money,” leaving Texans unable to determine who funds his group’s legislative ratings and endorsements, which can affect Republican primaries.

Wisconsin – Gov. Walker Signs Several Bills into Law

WBAY; Associated Press – | Published: 3/27/2014

A bill signed into law by Wisconsin Gov. Scott Walker allows lobbyists to start making personal donations the day candidates can circulate petitions for office, which is April 15. Under the previous law, they could not make any donations until June 1. In passing the measure, Republican lawmakers backed off from another change that would have let lobbyists hand over campaign checks from others during the legislative session.

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:

Lobbyist Faces $5 Million Fine for Allegedly Failing to File Disclosure Reports

Washington Post – Holly Yeager | Published: 3/18/2014

Federal prosecutors said Alan Mauk and his firm, Alan Mauk Associates, did not file required quarterly lobbying reports at least 13 times between 2009 and 2013. In addition, they are charged with failing to file semi-annual reports on political contributions on at least 13 occasions, also in violation of the Lobbying Disclosure Act. The law carries a fine of up to $200,000 for each violation. House and Senate officials notified Mauk at least 22 times about the missing reports, according to the civil complaint.

RNC Chair Calls for Reversal of ‘Soft Money’ Ban to Finance Conventions

Washington Post – Matea Gold and Philip Rucker | Published: 3/18/2014

The U.S. Senate approved a House bill that takes $126 million over 10 years out of the Presidential Election Campaign Fund and authorizes it for use in pediatric medical research. White House Press Secretary Jay Carney said President Barack Obama would sign the legislation. Republican National Committee Chairperson Reince Priebus said political parties should be able to raise “soft money” to pay for their presidential nominating conventions now that federal funding for the quadrennial events will be cut off.

From the States and Municipalities:

Arizona – Former Fiesta Bowl Chief Sentenced to 8 Months in Prison

Arizona Daily Star – Jacques Billeaud (Associated Press) | Published: 3/13/2014

John Junker, the former chief executive officer of the Fiesta Bowl, was sentenced to eight months in federal prison for violating campaign finance laws. He became the sixth person to be sentenced in a scheme in which bowl employees were reimbursed for donating federal, state, and local candidates. The scandal also exposed the lavish spending and perks the Fiesta Bowl heaped on lawmakers and employees, though no charges were filed involving those perks.

California – Highlighting Democratic Losses, Republicans Block California Campaign Finance Bill

Sacramento Bee – Jeremy White | Published: 3/17/2014

California Democrats’ loss of a legislative supermajority stifled their push to change the state’s campaign finance law. Senate Bill 27, which fell one vote short of passage, sought to lift the veil on outside campaign spending by compelling nonprofits to identify their donors if contributions hit certain thresholds in a given election cycle.

California – San Diego’s Ethics Commission Seeks to Rein in Independent Committees

inewsource.org – Joe Yerardi | Published: 3/14/2014

The San Diego Ethics Commission proposed reforms that would restrict the activities of independent political committees in the city. They are permitted to raise unlimited funds from nearly any source but are prohibited from coordinating strategy with candidates’ campaigns. At a recent meeting, the first in a months-long process, the commissioners debated the suggested changes.

Colorado – Investigation: Lobbyists skipped $90K in fines to Colorado

KUSA – Brandon Rittiman | Published: 3/15/2014

Lobbyists in Colorado are required to register and file disclosures stating who is paying them and how much. State law says the fines are charged to the person who registers as a lobbyist, not the organization they work for. This means groups can keep on influencing public officials even if some of the lobbyists who worked for them owe thousands of dollars to the state.

Georgia – Ordinary Citizens Find They Can Have an Impact at the Capitol

Augusta Chronicle – Walter Jones (Morris News Service) | Published: 3/19/2014

Many regular citizens show up at the Capitol and attempt to influence Georgia lawmakers. Angela Bean and Jan Horne, for example, spent a lot of time at the statehouse this year for various causes. “We know our being here is important; if people are going to come down here, the legislators know we’re representing [others] who aren’t here that feel the same way,” said Bean.

Indiana – Lawmaker with Industry Ties Worked to Nix Nursing Home Ban

The Post Tribune – Tom LoBianco (Associated Press) | Published: 3/17/2014

On the surface, Indiana Rep. Eric Turner had nothing to do with a last-minute decision to defeat a proposed nursing home moratorium that would have harmed his son’s business. But behind the scenes, Turner played a much different role, urging fellow Republicans during a private caucus meeting to defeat the moratorium. Last year, The Associated Press reported Turner had pushed a measure to benefit a client of his daughter, who is a lobbyist.

Maryland – Actor Kevin Spacey to Promote ‘House of Cards’ Tax Credit at Annapolis Reception

Washington Post – John Wagner | Published: 3/20/2014

Gerard Evans, an Annapolis-based lobbyist for “House of Cards,” has invited the entire Maryland General Assembly to a local wine bar on March 21 to meet the show’s star, Kevin Spacey. The event is scheduled just a few days after the Senate voted to increase a tax credit that rewards production companies that choose to film in the state. The House has yet to act on the bill. “House of Cards” has been the biggest beneficiary of the credit in recent years.

New Jersey – Attorney General to State Police: Stop photographing protesters at Chris Christie town halls

Newark Star Ledger – Jenna Portnoy | Published: 3/19/2014

After criticism that the action violated civil liberties, New Jersey Attorney General John Hoffman banned state police from taking photographs of hecklers and protesters at Gov. Chris Christie’s now-weekly town hall meetings. At least a dozen people were thrown out of a recent town hall after shouting criticisms at Christie. They complained about how his administration is distributing federal recovery money and questioned the governor’s role in a political payback scandal orchestrated by his aides.

North Carolina – Tweak to N.C Law Protected Duke Energy’s Coal Ash Pits

Greensboro News and Record; Associated Press –   | Published: 3/17/2014

In 2013, a coalition of environmental groups sued to force Duke Energy to clean up nearly three dozen leaky coal ash dumps spread across North Carolina. The company turned to the state Legislature for help. Documents and interviews show how Duke’s lobbyists prodded Republican lawmakers to tuck provision in a regulatory reform bill that allowed Duke to avoid any costly cleanup of contaminated groundwater leaching from its unlined dumps toward rivers, lakes, and the drinking wells of nearby homeowners.

Ohio – Cincinnati Lobbyist Pleads Guilty Over Unreported Gifts

Cincinnati Enquirer – Chrissie Thompson | Published: 3/19/2014

John Rabenold, vice president of governmental affairs for Axcess Financial, which runs Check ‘n Go, will be sentenced on May 1 for a pair of misdemeanor counts of filing false lobbying disclosure forms. Authorities said Rabenold failed to disclose meals and gifts he provided to Ohio lawmakers on his filings in 2010, as the payday lenders tried to hold back efforts to pass tighter regulations on the industry.

Ohio – Ohio Case Gets Serious and Satirical Attention before Supreme Court Hearing

Coshocton Tribune – Deirdre Shesgreen (Gannett Newspapers) | Published: 3/17/2014

Weighing in against an Ohio statute that makes it a crime to lie about a candidate, the Cato Institute filed a brief co-written by humorist P.J. O’Rourke with the U.S. Supreme Court using satire to poke fun at what it calls an “Orwellian” law that violates the First Amendment. The justices will not decide whether the law is constitutional but instead examine whether the plaintiffs have standing. Experts say that question, while seemingly technical, is important. And the underlying issues, touching on politics and free speech, are even more vital.

Pennsylvania – City Council Approves Ban on Cash Gifts to Phila Officials

Philadelphia Inquirer – Claudia Vargas and Tony Graham | Published: 3/20/2014

The Philadelphia City Council passed an ordinance that bans the city’s officers and employees from receiving any cash from a person seeking business or official action, while allowing non-monetary gifts up to $99 in value annually per donor. Mayor Michael Nutter is expected to sign the bill into law. City Board of Ethics Executive Director Shane Creamer said his agency would start working on new regulations once Nutter signs the measure.

Pennsylvania – Kane Shut Down Sting That Snared Phila. Officials

Philadelphia Inquirer – Angela Couloumbis and Craig McCoy | Published: 3/16/2014

Pennsylvania Attorney General Kathleen Kane shut down an operation that allegedly showed a handfull of Philadelphia politicians, including four members of the city’s state House delegation, accepting bribes and unreported gifts. The sting has not led to charges against the accused, according to The Philadelphia Inquirer. The report shows the probe seems marred with political head-butting between Kane and state prosecutor Frank Fina, who led the investigation. Kane called the investigation poorly conceived, badly managed, and tainted by racism, saying it had targeted African Americans.

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:

Activist Lawyer Aims to Drop Campaign Restrictions

USA Today – Fredreka Schouten | Published: 3/10/2014

Dan Backer is on a campaign finance crusade. Many of the lawyer’s far-fetched proposals have been rejected by federal regulators. But the conservative Republican could be on the brink of making election history – and his reputation – with a case the U.S. Supreme Court is deliberating. McCutcheon v. the Federal Election Commission seeks to eliminate the ceiling on what wealthy individuals can donate to federal candidates, parties, and PACs in a two-year election cycle.

Wanted by Ecuador, 2 Brothers Make Mark in U.S. Campaigns

New York Times – Frances Robles | Published: 3/11/2014

Roberto and William Isaias, who are fugitives from Ecuador now living in the U.S., have raised hundreds of thousands of dollars in campaign contributions from relatives for President Barack Obama and more than a dozen members of Congress. While the contributions were not illegal, campaign finance experts say they have opened the already politicized nature of extradition requests to greater scrutiny and raised questions about the access to power the donations provide.

From the States and Municipalities:

Arkansas – Federal Jury Convicts Former Arkansas Treasurer

ABC News – Chuck Bartels (Associated Press) | Published: 3/11/2014

A jury found former Arkansas Treasurer Martha Shoffner guilty on 14 counts of bribery and extortion. Prosecutors said during the federal trial that Shoffner received money from broker Steele Stephens and in exchange, she steered a disproportionate amount of the state’s investment business to Stephens. Shoffner was arrested in May when FBI agents raided her home and found $6,000 that was delivered in a pie box.

California – Sky’s the New Spending Limit in LA’s Westside Supervisor’s Race

KPCC – Sharon McNary | Published: 3/12/2014

Bobby Shriver, who is running for a seat on the Los Angeles County Board of Supervisors in the June 3 primary, has rejected voluntary campaign spending limits and said he will at least partially self-fund his race. The action removes expenditure caps for all the candidates, and imposes a $300 limit on donations to Shriver.

District of Columbia – Prosecutors Say DC Mayor Knew of Illegal ‘Shadow Campaign,’ Personally Requested Funds

Star Tribune – Ben Nuckols (Associated Press) | Published: 3/10/2014

Prosecutors said District of Columbia Mayor Vincent Gray knew about an illegal fundraising operation that helped him capture the 2010 election and personally asked a prominent business executive to finance the scheme. The allegations were revealed in court documents detailing the activities of Jeffrey Thompson, the multimillionaire former owner of a well-connected accounting firm who pleaded guilty to two conspiracy charges.

Florida – Who Says Lobbyists Can’t Win Elections?

Politico – Byron Tau | Published: 3/12/2014

Despite his profession’s low approval ratings, lobbyist David Jolly edged out Alex Sink in Florida’s special election for the 13th Congressional District seat. It is the latest sign a Washington, D.C. lobbying or consultant background is not a deal-breaker at the ballot box. Jolly is the second prominent K Street denizen to get a nod from voters in recent months and two other candidates with ties to lobbying firms or trade associations will face voters this year: Ed Gillespie in Virginia and Debbie Dingell in Michigan.

Illinois – Campaign Finance Case Won’t Be Resolved This Election Cycle

Quad City Times – Kurt Erickson | Published: 3/6/2014

A lawsuit challenging Illinois’ caps on political donations is unlikely to be resolved before the 2014 elections, so limits put in place in 2009 will probably remain in place for the rest of this election season. U.S. District Court Judge Gary Feinerman dismissed most of a challenge to the landmark changes filed by the Liberty Justice Center, but kept one piece of the case alive for further debate, potentially extending arguments for several more months.

Kansas – Ex-Rep. Trent LeDoux Accused of Bank Fraud, Money Laundering

Topeka Capital Journal – Timothy Carpenter | Published: 3/12/2014

A federal grand jury indicted former Kansas Rep. Trent LeDoux, charging he used bank loans obtained to purchase cattle to finance his political activities. LeDoux faces three counts of bank fraud and two counts of money laundering for allegedly depositing funds from the cattle loans into his campaign account in 2011 and 2012.

Michigan – Mich. Slaps Health Care Union with 2nd Largest Elections Fine Ever

Detroit News – Chad Livengood | Published: 3/10/2014

The Service Employees International Union (SEIU) will pay almost $200,000 to settle alleged campaign finance violations from a failed 2012 ballot proposal seeking collective bargaining rights for home health workers in Michigan. The complaint accused the principals behind Home Care First and Citizens for Affordable Quality Home Care of intentionally delaying required filings with the secretary of state’s office to conceal that SEIU had made substantial contributions to support the proposal.

Minnesota – Minnesota House Votes to Reverse ‘Free Lunch’ Provision for Legislators

Minneapolis Star Tribune – Abby Simons | Published: 3/10/2014

The Minnesota House voted to reverse course on a recent change to the law that made it easier for lobbyists to buy meals for legislators. The bill would do away with an exception that allows lawmakers to get lobbyist-purchased meals at receptions as long as all legislators are invited. Under the state’s prior gift ban, lawmakers had to reimburse sponsoring group or lobbyists for the cost of those meals.

South Carolina – Ethics Regulators Question Lobbyist’s Campaign Contribution to S.C. Attorney General

Charleston City Paper – Corey Hutchins | Published: 3/7/2014

Onetime lobbyist Joyce Hearn gave a total of $200 to South Carolina Attorney General Alan Wilson’s campaign in 2009 and 2010. Hearn de-registered as a lobbyist on May 30, 2010, but that does not matter, said State Ethics Commission Deputy Director Cathy Hazelwood. Even if a lobbyist de-registers in South Carolina, he or she cannot give direct campaign contributions to a lawmaker or statewide candidate during the year they lobbied.

Utah  Report: Swallow put a ‘For Sale’ sign on the Utah AG’s office

Salt Lake Tribune – Robert Gehrke | Published: 3/12/2014

A House panel closed its investigation of former Utah Attorney General John Swallow by releasing a report that says he traded favors with businesspeople, obscured campaign donations, and destroyed records, among other allegations. “[Swallow] hung a veritable ‘for sale’ sign on the office door that invited moneyed interests to seek special treatment and favors,” alleges the report. Two county attorneys in Utah, with the assistance of the FBI, are in the middle of a criminal investigation of Swallow and others.

Virginia – Va. General Assembly Adjourns without Budget or Medicaid Expansion

Washington Post – Laura Vozella, Michael Laris, and Rachel Weiner | Published: 3/8/2014

Virginia lawmakers passed an omnibus ethics reform bill that sets a $250 annual limit on the amount of certain gifts elected officials can accept from lobbyists, principals, and anyone who has or is seeking business with the state. It requires disclosure of gifts given to spouses and immediate family members, establishes an ethics advisory council, and increases the transparency of financial disclosure forms by putting them online.

Washington – PDC Disclosure Bill for Lobbyists’ Freebies Gets ‘Lost in the Shuffle’

The Olympian – Brad Shannon | Published: 3/11/2014

Washington lawmakers most likely will adjourn their legislative session without addressing the issue of lobbyist-paid entertainment. A bill that would have required lobbyists to file spending reports electronically at the state Public Disclosure Commission failed to move out of Senate Ways and Means Committee at the deadline for policy bills.

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:

Outrage Over Sexist Remarks Turns Into a Political Fund-Raising Tool

New York Times – Amy Choziak | Published: 2/27/2014

With a record number of women in Congress and dozens more on the ballot, gender-charged attacks – stoked by the growth of social media and small-dollar Internet donations – can generate campaign contributions in an instant. In the past few months, Republicans have likened Democratic U.S. Senate candidate Alison Lundergan Grimes to an “empty dress” and referred to a pregnant woman as a “host.” Democrats blast these comments out to supporters to build voter lists and drum up donations.

Federal:

Democrats Embrace Super PACs, but Some Fear Lack of Focus on Midterm Elections

Washington Post – Matea Gold | Published: 2/28/2014

There is now a near-universal view among top donors and strategists that the Democratic Party needs its own super PACs to compete with the growing role such groups are playing on the right. But there are disagreements over how to use the independent organizations. Some say Priorities USA Action and other groups that can accept unlimited contributions are too focused on the 2016 presidential race and a potential Hillary Clinton candidacy, even as Democrats face a costly, uphill fight this year to retain a thin Senate majority and gain seats in the House.

Group Close to Obama Says It Erred on Donation

New York Times – Nicholas Confessore | Published: 3/4/2014

Organizing for Action, a political advocacy group backed by President Barack Obama, said its executive director set up a White House meeting for a businessperson entangled in a lawsuit with a federal agency, who then pledged to raise $100,000 for the group one day after the meeting. The organization also said on three occasions its fundraisers or other employees had tried to steer potentially controversial donations to allied liberal groups that did not disclose their donors.

From the States and Municipalities:

California – Senate Dems to Propose New Limits on Gifts, Fundraising

Sacramento Bee – Laurel Rosenhall | Published: 3/5/2014

Countering a series of scandals, California Senate Democrats plan to propose sweeping changes to the Political Reform Act, including stricter limits on accepting gifts and campaign contributions. Sources said the legislation will cut roughly in half the $440 annual limit on gifts to elected state officials, and prohibit candidates from holding political fundraisers at the homes of lobbyists.

Colorado – Critics See Proposed Ethics Commission Cue as Bad Medicine

Colorado Independent – John Tomasic and Tessa Cheek | Published: 3/2/2014

A bill that aims to fix the Colorado Independent Ethics Commission comes as the number of complaints filed with the panel continues to grow. House Bill 1258 seeks to bolster protections for state employees who are brought before the commission. It would ensure they are provided with tax-paid legal counsel and have the right to sue individual members of the commission for damages. Critics say the measure would do more harm than good.

Colorado – First and Only Director of Colorado Ethics Commission Steps Down

Denver Post – Lynn Bartels | Published: 3/1/2014

Colorado Independent Ethics Commission Executive Director Jane Feldman has submitted her resignation, effective at the end of March. Complaints about the commission have led to legislation being introduced this session. That would affect its operations.

Florida – Special Interests Pay Their Way onto Florida’s Legislative Agenda

Bradenton Herald – Mary Ellen Klas (Miami Herald) | Published: 3/3/2014

Many of the decisions about what issues make the agenda of Florida’s 2014 legislative session have already been made, in large part due to special interest groups and a torrent of money flowing into the coffers of legislative political committees. Longtime lobbyist Bob Levy said money has always been a major part of what happens in Tallahassee, but the difference is the number of zeroes. “It existed then, but it was $50,000; today it’s $500,000,” said Levy.

Missouri – Small Number of Donations Fuel Missouri Political Spending

St. Louis Post-Dispatch – Walker Moskup | Published: 3/3/2014

From 2011 to 2013, more than half of the money raised by Missouri campaign committees – about $67 million – came from donations of $5,000 or more. Those larger donations represent about three percent of the total number of contributions. The absence of contribution limits in the state exacerbates the reliance on mega-donors, said Missouri State University professor George Connor.

Pennsylvania – D.C.-Based Democratic ‘Super PAC’ Sues to Remove Pa. Law Blocking it from Getting Corporate and Union Money

Harrisburg Patriot-News – Matt Miller | Published: 3/3/2014

A Washington, D.C.-based super PAC filed a lawsuit asking a federal judge to void a Pennsylvania law that is blocking its efforts to raise funds from corporations, associations, and unions in the state. The General Majority PAC contends the U.S. Constitution and a Supreme Court ruling grant it the right to solicit money from those sources to finance its political message during Pennsylvania’s legislative races this year.

Utah – Free Lunches, Receptions Abound for Utah Legislature

Salt Lake Tribune – Lee Davidson | Published: 3/3/2014

While events featuring free food remain a popular way to attract Utah lawmakers to hear lobbying pitches, they appear to be changing. The number of free lunches, which are expensive for sponsors, dropped by nearly half this year. Less-costly receptions nearly doubled. Still, special interests do not see free “wining and dining” disappearing any time soon. That is too bad, say groups who cannot afford that style of lobbying.

Virginia – Va. Moves to Tighten Ethics Rules, But Not Too Much

Washington Post – Michael Laris | Published: 3/1/2014

The Virginia House and Senate have passed different bills that address ethics reform. They will work on a compromise as the legislative session draws to a close, but neither bill addresses key loopholes. Lawmakers said it was more difficult than they expected to make far-reaching changes, in part because as they got into the details, they became concerned that imposing tough provisions could end up inadvertently criminalizing their own honest mistakes.

Wisconsin – Wisconsin Senator Seeks to Allow In-Session Lobbyist Checks

Milwaukee Journal Sentinel – Patrick Marley | Published: 3/4/2014

Recently introduced bills in Wisconsin would exempt political groups behind issue ads from disclosing donors and allow lobbyists to funnel donations to candidates. Senate Bill 655 would allow lobbyists to provide contributions on behalf of others to elected officials at any time. The bill also would move up the date on which lobbyists can personally give campaign contributions from June 1 to April 15 of election years.

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:

In Some States, gaming Industry Consultants Double as Gambling Regulators

Las Vegas Review-Journal – Hannah Dreier (Associated Press) | Published: 2/23/2014

As more cities and states embrace legalized gambling across the country, private companies are being hired to write regulations and vet casinos, even as the same firms work the other side of the fence, helping casinos enter new markets and sometimes lobbying for their interests. Letting consulting companies with deep ties to the gambling industry decide how casinos are run is a significant departure from how established gambling states, including Nevada and New Jersey, do things.

Federal:

Where Have All the Lobbyists Gone?

The Nation – Lee Fang | Published: 2/19/2014

January records show spending on federal lobbyists decreased for the third consecutive year, and the number of registered lobbyists dropped to the lowest level since 2002. Despite word if its demise, some experts believe lobbying is not becoming extinct; it is only going underground. The combination of a loophole-ridden law, meager enforcement efforts, and a sophisticated strategy permitting third parties to develop faux-grassroots campaigns, as well as White House executive orders that dissuaded lobbyists from registering, all combined to collapse the system designed to track federal lobbying.

From the States and Municipalities:

California – California State Sen. Ron Calderon Indicted on Corruption Charges

Fresno Bee – Laurel Rosenhall (Sacramento Bee) | Published: 2/21/2014

California Sen. Ron Calderon was charged with accepting $100,000 in bribes, lavish trips, and no-show jobs for his children in exchange for pushing legislation to benefit a hospital engaged in billing fraud and participating in a film industry tax scheme that actually was an FBI sting. Calderon’s brother, Tom, a former state lawmaker-turned-lobbyist, was charged with money-laundering for funneling bribes through a tax-exempt group he controlled.

California – Lobbyist Kevin Sloat’s Penalty Falls Short, Ex-Employee’s Lawyer Says

Los Angeles Times – Patrick McGreevy and Paige St. John | Published: 2/20/2014

The California Fair Political Practices Commission signed off on a $133,500 fine for lobbyist Kevin Sloat, who made improper campaign contributions to elected officials. The attorney whose lawsuit triggered the investigation, criticized the commission for not addressing other allegations. The suit said Sloat and his firm arranged free golf games for lawmakers at a course run by a client, helped legislators get sports and concert tickets, and assisted one state Assembly member in buying art at a deep discount.

Connecticut – Federal Grand Jury Probes GOP Contracts

Connecticut Post – Ken Dixon and Neil Vigdor | Published: 2/21/2014

Lawmakers say they believe federal authorities are trying to determine whether any Connecticut House Republicans were pressured to use a particular company for their political campaign mailings. Federal subpoenas show the FBI wants to see contracts and correspondence between the House Republicans and two direct mail companies that have been used by the caucus members and the caucus’ PACs.

Georgia – Ethics: The ghost of Legislatures past

Georgia Public Broadcasting – Jeanne Bonner | Published: 2/20/2014

Georgia lawmakers attended a joint question and answer session to straighten out growing confusion about how to abide by the law that lobbyists’ spending on individual legislators to $75 per expenditure. Critics and supporters alike say it contains exceptions that may undermine the intent to rein in lobbyists’ power. The state ethics commission probably will not issue guidelines on complying with the law until this summer.

Hawaii – Lobbyists Would Have to Disclose More Details on Political Spending

Honolulu Civil Beat – Nathan Eagle | Published: 2/25/2014

Hawaii lawmakers are advancing legislation this session that would require lobbyists to account for the money they are spending by breaking it into categories that show how much goes toward food, entertainment, gifts, loans, and other areas. A separate bill aims to make lobbying disclosure reports available in a timelier manner, particularly after a special legislative session.

Minnesota – Bill Seeks to Undo Senjem’s Loosening of Gift Ban

Rochester Post-Bulletin – Heather Carlson | Published: 2/25/2014

During the last legislative sessionin Minnesota, a campaign finance bill was successfully amended to allow lawmakers and legislative employees to attend receptions thrown by lobbyists without having to pay for food and drinks. It does require that all 201 lawmakers be invited and given at least five days’ notice. Now, state Rep. Ryan Winkler has sponsored a bill to reinstate a ban on the practice.

Missouri – Ethics Bills Draw Little Praise from Missouri Lawmakers They Would Regulate

St. Louis Post-Dispatch – Virginia Young | Published: 2/26/2014

Members of the Missouri House General Laws Committee agreed the state needs to update its ethics laws, but were divided on how to do it and how far an overhaul should go. The committee considered several proposals, including ones that would require limits on campaign contributions and lobbyist gifts.

New Jersey – Bergen County Freeholders Tighten Limits on Political Donations by No-Bid Contractors

Bergen Record – John Ensslin | Published: 2/20/2014

Bergen County freeholders approved a “pay-to-play” bill that will drastically lower the amount of money contractors can donate to county political parties. The freeholders passed a resolution that will lower the allowed contribution from no-bid county contractors from $5,200 to $2,000. The move represents a reversal of a 2013 measure that softened restrictions during a critical election year for both parties and led to criticism from watchdog groups.

Oregon – Oregon Secretary of State’s Website is Back Up and Running

Salem Statesman Journal – Hannah Hoffman | Published: 2/24/2014

Oregon Secretary of State Kate Brown announced her department’s online systems – the Central Business Registry and ORESTAR, the state’s online campaign finance reporting system – are back up and running after being shut down for nearly three weeks following a security breach. Brown said a grace period has been established for political campaigns filing overdue reports, with fines for late transactions being waived.

Pennsylvania – Council Committee OKs Private Gifts of Up to $99 in Value to City Workers

Philadelphia Inquirer – Bob Warner | Published: 2/24/2014

A Philadelphia City Council committee gave initial approval to specific limits on the value of gifts that city workers can accept. The city’s five-decades-old gift law had never sets limits on the value of gifts that city workers, including elected officials, can receive. The ordinance would allow city employees to annually accept noncash gifts worth up to $99, even from people with official business before them.

Utah – Utah Legislature: Vote up or down – conflict or not

Salt Lake Tribune – Lee Davidson | Published: 2/24/2014

Utah and Oregon are the only two states where lawmakers cannot abstain and are required to vote even if they have a major conflict-of-interest on a bill. Utah Rep. Jim Nielson has introduced legislation to allow lawmakers to abstain or vote “present.” But he does not expect it to go far. In part, that is because leaders see conflicts as natural in a citizen Legislature, and they worry that creating more pressure to declare them and skip votes could get out of hand. Ethics reformers say a better system is needed.

Virginia – House Passes Ethics Bill with ‘Turkey Dinner Amendment’

The Daily Progress – Marcus Schmidt (Richmond Times Dispatch) | Published: 2/26/2014

The Virginia House passed a Senate ethics reform package. Senate Bill 649, which is almost identical to a proposal a House committee hammered out over several weeks, puts a $250 cap on gifts from lobbyists and anyone with business before the state, and it creates an ethics advisory council that will oversee and update Virginia’s financial disclosure system. Del. C. Todd Gilbert said he expects both bills to be dealt with in conference committee before one broad proposal heads to Gov. Terry McAuliffe.

Washington – State Legislators’ Financial Disclosures Fall Short

Seattle Times – Jim Brunner | Published: 2/22/2014

Although Washington frequently gets high marks from national open-government groups, some experts say one area where the state is lagging is in the personal financial disclosure by public officials. There are other flaws in the state’s disclosure system that leave holes in the public’s understanding of the financial affairs of their elected officials. As a result, some lawmakers file erroneous or confusing reports that go uncorrected unless spotted by political opponents, journalists, or activists.

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:

Last Call for State Parties?

Politico – Byron Tau | Published: 2/16/2014

State party officials across the country say the increase in money going to super PACs, nonprofits, and presidential campaigns has made fundraising more difficult. Some of those outside groups are starting to take over the traditional local roles state parties play, spending big on voter contact and outreach operations. The effect is that candidates can be more beholden to national organizations or single-issue groups rather than state party leaders.

Federal:

A Wave of Capitol Hill Retirements May Force Some Lobbyists to Rebrand Themselves

Washington Post – Holly Yeager | Published: 2/17/2014

The retirements of several powerful members of Congress are affecting former aides that have moved to K Street. Across a variety of areas, the departures – more than two dozen at last count – are prompting former Capitol Hill staffers whose biographies boast of their high-level connections to try to reassure their lobbying clients that they bring more to the job than links with their old bosses.

From the States and Municipalities:

California – Ex-SF Supervisor Yaki Heads off Suit, Pays $75K

San Francisco Chronicle – John Coté | Published: 2/20/2014

Former San Francisco Supervisor Michael Yaki agreed to pay $75,000 to settle a lawsuit in which the city alleged he was an unregistered lobbyist who broke the municipal lobbying law “in every way.” The proposed settlement would be the largest payment in state history to resolve allegations of unreported lobbying. Yaki also must register retroactive to 2012 and report all of his contacts with city officials from that point forward.

California – San Francisco 49ers Drop Embattled Lobbyist Kevin Sloat

San Louis Obispo Tribune – Laurel Rosenhall and Christopher Cadelago (Sacramento Bee) | Published: 2/14/2014

The San Francisco 49ers fired their Sacramento lobbying firm, Sloat Higgins Jensen and Associates, after the company was fined $133,500 by the California Fair Political Practices Commission for violating the state’s lobbying laws. Kevin Sloat acknowledged hosting elaborate fundraising parties for nearly 40 politicians, providing liquor, cigars, and other hospitality that amounted to campaign contributions that are prohibited from lobbyists.

Florida – Should David Beckham Have Registered as a Miami-Dade County Hall Lobbyist?

Miami Herald – Patricia Mazzei | Published: 2/14/2014

In June, during his early days exploring Miami as a location for his expansion Major League Soccer franchise, David Beckham and his investors had meetings with local officials. Now, Miami-Dade’s ethics commission is examining whether Beckham and his partners broke any rules requiring lobbyists to register with county government before making a pitch to public officials.

Louisiana – David Vitter’s Super PAC Challenges Louisiana’s Campaign Contribution Limits

New Orleans Times Picayune – Julia O’Donohue | Published: 2/18/2014

A super PAC set up to support U.S. Sen. David Vitter and his 2015 gubernatorial run is asking a federal court to rule Louisiana’s cap on donations to PACs unconstitutional. The Fund for Louisiana’s Future argues the state is restricting political speech by imposing a contribution limit on PACs of $100,000 per four-year election cycle from individuals, corporations, and unions. It wants the court to make a decision before April 5, when the next round of Louisiana’s local and state elections take place.

New Jersey – Trenton Mayor Tony Mack May Not Be Leaving Office Anytime Soon

NJ.com – Alex Zdan and Jenna Pizzi | Published: 2/16/2014

Trenton Mayor Tony Mack has refused to step down after he was found guilty February 7 on corruption charges. His conviction in a federal court does not trigger his automatic removal from office; without a resignation, Mack will remain mayor until state prosecutors can get a judge to sign off on an order of forfeiture. Removal after a conviction in state court is automatic, but not if the official is tried by federal prosecutors as Mack was.

New York – JCOPE Returns to Waivers

Albany Times Union – Casey Seiler | Published: 2/18/2014

At a recent meeting, members of the Joint Commission on Public Ethics debated exemptions to rules that require the disclosure of donors by nonprofit groups that engage in lobbying. The controversy over the exemptions began last summer, when it was revealed the state arm of the pro-choice group NARAL had been granted an exemption, prompting Republicans to complain that the panel had created a secret path for political giving.

North Carolina – Duke’s Giving Favored the GOP as Lawsuits Threatened, Watchdog Group Says

Raleigh News & Observer – Bruse Henderson | Published: 2/14/2014

North Carolina Gov. Pat McCrory denied he had any talks with Duke Energy executives or lobbyists about his administration’s now scuttled deal to settle environmental violations at two of the company’s coal ash dumps. McCrory worked at Duke 28 years before retiring to make his first run for governor in 2008. On a state disclosure form, McCrory last year indicated his investment portfolio includes holdings of Duke stock valued in excess of $10,000, though he is not obligated to disclose the specific amount.

Oregon – Oregon Secretary of State Kate Brown Modifies Elections Rules as Website Breach Keeps Databases Offline

Salem Statesman Journal – Hannah Hoffman | Published: 2/19/2014

The Oregon secretary of state’s office shut down most its public online systems after detecting an intrusion into its website. Secretary of State Kate Brown is waiving fines for missing a campaign finance reporting deadline while ORESTAR remains down.

South Carolina – SC Poised to Elect First Black Candidate to Statewide Office

The State – Adam Beam | Published: 2/18/2014

The last time South Carolinians elected an African-American to statewide office was 1872, when Richard Howell Gleaves was elected the state’s second – and last – black lieutenant governor. The black community’s political influence was squashed in 1895 when then-Gov. Ben Tillman rewrote the state constitution, which is still in place today, to virtually eliminate all black influence in state politics. Now, 142 years later, that influence appears to be returning, albeit it in small steps.

Vermont – No Second Bite at Campaign Finance Limits

Rutland Herald – Neal Goswami (Vermont Press Bureau) | Published: 2/14/2014

The Vermont House defeated an attempt by one member to delay implementation of the state’s new campaign finance law until 2019. Rep. Cynthia Browning tried to add the delay as an amendment to a bill making a technical correction to the campaign finance law signed by Gov. Peter Shumlin in January. Browning and other critics have charged it did too little to clamp down on the influence of wealthy political donors.

Wisconsin – Scott Walker, Eyeing 2016, Faces Fallout from Probes as Ex-Aide’s E-mails Are Released

Washington Post – Rosalind Helderman | Published: 2/20/2014

Thousands of recently unsealed documents link Wisconsin Gov. Scott Walker to a secret email system used in his office that would avoid public scrutiny when he was Milwaukee County executive. The documents show just how intertwined Walker’s campaign operation was with his taxpayer-paid county staff in the months leading to the November 2010 election. It is against state law for public employees to work for political parties and campaigns while being paid by taxpayers to provide government services.

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:

The State Races Ignored – Until Now

Politico – Tal Kopan | Published: 2/12/2014

Races for secretary of state have captured the attention of some of the country’s major political players, who have formed national PACs and sketched out multimillion-dollar fundraising plans. They believe that winning these offices could give their side an edge in the 2016 presidential race because secretaries of state run elections and can shape voter ID rules and other details. When margins are tight, those small differences can mean the difference between a win and a loss.

Why There’s No Democratic Version of the Koch Brothers Organization

Washington Post – Reid Wilson | Published: 2/7/2014

For the Democratic professionals who run campaigns, the thing that frustrates them most about the coordinated network of conservative donors built by Charles and David Koch is that there is no real equivalent on their side. That is because big Democratic donors and big Republican contributors are motivated by different types of issues, and therefore give differently, according to Democratic strategists who deal frequently with wealthy donors.

Federal:

Both Sides Object to I.R.S. Plan to Restrict Nonprofits’ Political Activity

New York Times – Carl Hulse | Published: 2/12/2014

In a rare agreement between tea party and liberal activists, organizations across the political spectrum say new regulations drafted by the Internal Revenue Service to curb a surge in political spending and activity by nonprofits are far too broad. They fear that enforcement of the regulations would chill more neutral civic initiatives such as voter registration efforts and candidate forums.

Fight over Minimum Wage Illustrates Web of Industry Ties

New York Times – Eric Lipton | Published: 2/9/2014

Conservative and liberal groups are again working in opaque ways to shape controversial political debates in Washington through organizations with benign-sounding names that can mask the intentions of their wealthy patrons. They do it with the gloss of research, and play a critical and often underappreciated role in multilevel lobbying campaigns, backed by corporate lobbyists and labor unions, with a potential payoff that can be in the millions of dollars for the interests they represent.

From the States and Municipalities:

California – Record-Setting Fine Hits Sacramento Lobbyist Kevin Sloat

Sacramento Bee – Laurel Rosenhall | Published: 2/11/2014

Kevin Sloat and his lobbying firm, Sloat Higgins Jensen & Associates, agreed to pay a record $133,500 fine to the California Fair Political Practices Commission for making improper campaign contributions to some 40 politicians. In addition to improperly providing expensive wines, liquor, and cigars at fundraisers, Sloat and his firm also illegally arranged for gifts including sports tickets for some lawmakers.

Colorado – Colorado Secretary of State’s Office Offers Opinion in Favor of Parties Forming Independent Expenditures

Denver Post – Kurtis Lee | Published: 2/6/2014

The Colorado Secretary of State’s office issued an opinion clearing the way for political parties to form independent expenditure committees and solicit unlimited funds. In the years since the U.S. Supreme Court’s Citizens United decision, which allows unlimited contributions for some groups, the Colorado Republican Party, which asked for the opinion, has felt weakened by the state’s campaign finance laws parties must adhere to.

Connecticut – Panel Warns About Fundraising from Contractors

Hartford Courant – John Lender | Published: 2/12/2014

Connecticut’s Elections Enforcement Commission adopted an unsolicited advisory opinion outlining when it is appropriate for a state campaign or candidate to receive money from a federal account, either directly or indirectly. Without accusing the Democratic Party of doing anything wrong, the agency that regulates elections sought to clarify questions raised by the news media and state contractors, who are banned from giving money directly to a party’s state account.

Florida – Florida’s Special Districts: Where lobbyists ride free and the public is in the dark

Miami Herald – Dan Christensen (Broward Bulldog) | Published: 2/7/2014

Lobbyist registration and disclosure has been mandatory for years in Tallahassee and in many city and county halls across Florida. Those who violate the law can be fined and barred from lobbying for up to two years. But the nearly 1,000 special-purpose governments across the state that raise and spend billions of dollars in public funds every year do not require lobbyists who appear before them to register, pay fees, or disclose any information about themselves or their clients.

Louisiana – Nagin Guilty of 20 Counts of Bribery and Fraud

New York Times – Campbell Robertson | Published: 2/12/2014

Former New Orleans Mayor Ray Nagin was convicted on 20 of 21 bribery and conspiracy charges, capping a broad federal investigation into public corruption in the aftermath of Hurricane Katrina. Seven contractors and officials also have been convicted of, or have pleaded guilty to, trading city business for trips and payments. Nagin could receive a sentence of as many as 20 years in prison.

Massachusetts – House Ejects Carlos Henriquez for Assault Conviction

Boston Globe – Jim O’Sullivan and Michael Levenson | Published: 2/7/2014

The Massachusetts House expelled state Rep. Carlos Henriquez, who is serving a six-month jail sentence after being convicted of assaulting a former girlfriend. Henriquez said he was innocent of the charges and rejected calls for him to resign. House leaders insisted Henriquez’s confinement would prevent him from discharging the duties of his office. They urged colleagues to look at photos of the victim, which they said showed multiple black-and-blue marks on her chest, torso, and arms.

Minnesota – Board Firms Wall between Minn. Candidates, Groups

St. Paul Pioneer Press – Brian Bakst (Associated Press) | Published: 2/11/2014

The Minnesota Campaign Finance and Public Disclosure Board issued an opinion that discourages candidates from helping independent political groups raise money that could eventually be routed back into their races. The board said such activity would likely violate laws meant to keep activities of candidates and independent expenditure committees separate.

New Jersey – Chris Christie’s Long Record of Pushing Boundaries, Sparking Controversy

Washington Post – Carol Morello and Carol Leonnig | Published: 2/10/2014

When Chris Christie became U.S. attorney for New Jersey, he took an oath to uphold public trust by prosecuting corruption and fraud in a state infamous for both, and to be above political influence or bias. But he held this powerful, apolitical post at a time when he was building a political future for himself, laying the groundwork for his campaign for governor. Christie’s bosses were concerned about the appearance of several deals he struck with corporations that agreed to change their ways if they were not charged in cases involving financial irregularities.

New York – City Hall’s New ‘In’ Crowd

Crain’s New York Business – Chris Bragg | Published: 2/10/2014

Political observers say lobbyists’ reputed closeness to New York City Mayor Bill de Blasio and other recently elected power brokers will determine who prospers in the influence industry. “Anytime a story is written saying a lobbyist is close to a politician, they raise their rates,” said Ken Fisher, a lobbyist at Cozen O’Connor and a former City Council member.

Virginia – House Approves Ethics Reform Bill, Sends it to Senate

Roanoke Times – Marcus Schmidt (Richmond Times-Dispatch) | Published: 2/11/2014

The Virginia Legislature moved forward with measures to overhaul the state’s ethics law. The House and Senate each passed almost identical reform bills by overwhelming margins. Both bills require lawmakers and public officials to disclose gifts to their immediate families, mandate gift disclosures twice rather than once a year, and cap tangible gifts from lobbyists at $250.

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:

Small Super PACs Playing Outsize Role in Senate Races

National Journal – Scott Bland and Alex Roarty | Published: 2/3/2014

Small, state-based outside groups that are allowed to raise and spend unlimited amounts of money have proliferated in the early going of the 2014 midterm races and are threatening to have a bigger impact than those based in Washington, D.C., such as American Crossroads. These new groups are based in states where U.S. senators are battling for re-election, and dedicate themselves exclusively to that race.

Federal:

Campaign Websites in 2014 Aren’t Always What They Seem

Time Magazine – Denver Nicks | Published: 2/5/2014

A new Republican fundraising tactic reminiscent of telemarketing scams has some asking where the line is between clever campaigning and fraud. The GOP is raising money for congressional races by putting up websites that pretend to represent Democratic candidates and accept contributions that will go toward defeating the very same Democrats.

Law Doesn’t End Revolving Door on Capitol Hill

New York Times – Eric Lipton and Ben Protess | Published: 2/1/2014

Federal ethics rules are intended to limit lobbying by former senior officials within one year after they leave the government. Yet even after the ethics rules were revised in 2007 following a lobbying scandal, more than 1,650 congressional aides have registered to lobby within a year of leaving Capitol Hill, according to an analysis by The New York Times. At least half of those departing aides, the analysis shows, faced no restrictions at all.

From the States and Municipalities:

Alabama – Alabama Senate Disagrees to Agree? Partisan Fight Ends with Unanimous Vote for Tougher Ethics Bill

AL.com – Mike Cason | Published: 2/4/2014

The Alabama Senate passed legislation to tighten restrictions on former public officials who become lobbyists. Senate Bill 36 would prohibit state contractors from giving campaign contributions to state officials, and would expand the definition of lobbying, among other provisions. The bill now goes to the House.

Alabama – Resort’s Offer to Heroic Birmingham-Area Teachers Sparks Debate over Ethics

AL.com – Michelle Matthews | Published: 1/30/2014

David Clark, a condominium manager, wants to offer two-night condo stays to thank Birmingham-area teachers who stayed overnight with children who were stranded after a recent winter storm, but questions arose as to whether the giveaway would violate Alabama’s ethics law, which stipulates that teacher gifts must have a value of $25 or less, and that gifts may not exceed a total of $50 for a full calendar year.

California – Why Is It So Hard To Catch Illegal Campaign Contributions?

KPBS – Brad Racino | Published: 2/3/2014

Campaign fundraisers and strategists, as well as government employees and independent researchers, said the overwhelming number of donations that can pour into a campaign makes the process almost impossible to monitor. There is a lack of regulatory manpower needed to sift through myriad contributions to locate any abnormalities. So far, there have been more than 10,000 campaign contributions made during San Diego’s 2013 mayoral special election.

Florida – Convicted Sweetwater Mayor’s Lobbyist-Friend Gets 1-Year Sentence

Miami Herald – Jay Weaver | Published: 2/6/2014

Lobbyist Jorge Forte, a onetime chief of staff for former Sweetwater Mayor Manuel Maroño, was sentenced to one year in jail after pleading guilty to a fraud conspiracy and agreeing to cooperate with prosecutors. Maroño and Forte were arrested after an undercover FBI operation revealed they were pocketing thousands of dollars in kickbacks while seeking federal grants. Maroño, who did not cooperate in the investigation, was sentenced to 40 months in prison.

Hawaii – Critics Say Hawaii Political Money Hard to Trace

Columbus Republic; Associated Press –   | Published: 1/30/2014

Lobbyists in Hawaii are supposed disclose how much money they spend to influence lawmakers, but critics say the state disclosure system is among the weakest in the nation and prevents a timely and complete tally. Sen. Les Ihara introduced legislation to close loopholes that allowed more than 90 percent of nearly 200 registered lobbyists to report zero expenses over three reporting periods last year.

Louisiana – Louisiana Politicians Spent Millions on Meals, Golf, Tickets, Other Perks, Review Shows

New Orleans Times Picayune – Manuel Torres | Published: 1/30/2014

Running for office in Louisiana spawns campaign accounts that numerous officials are using to pay for meals and drinks, golf rounds and club dues, gifts to unnamed recipients, and other perks, reported The New Orleans Times Picayune. Critics say without stricter rules, campaign funds are being used as private expense accounts, turning contributions into little more than gifts to candidates.

Missouri – Dooley Suggested County Workers Donate 1% of Their Pay to Campaign, His Office Confirms

St. Louis Post-Dispatch – Kevin McDermott | Published: 2/4/2014

At an after-work meeting, St. Louis County Executive Charlie Dooley told some 50 county workers, all political appointees, that donating one percent of their salaries to his re-election campaign is traditionally what people in those jobs do in election years. KMOX reported that sources indicated no effort was made to tell employees that donating to the re-election effort was voluntary. The sources described the effect of the speech as “intimidating” with the audience caught in moments of awkward silence.

Nevada – An Awkward Position for Nevada’s Ethics Commission Director

Reno Gazette Journal – Anjeanette Damon | Published: 2/1/2014

Nevada Ethics Commission Executive Director Caren Cafferata-Jenkins is running a for Washoe Family Court judge. From the outside, it looks like an awkward position to be in; one of the state’s few public ethics watchdogs is jumping into the political game herself. Cafferata-Jenkins said she cannot afford to give up her job to run for office. “How can we expect good candidates to be unemployed for 10 months in order to have a chance at public office?” said Cafferata-Jenkins.

Oregon – Trader Joe’s Developer Hosts Event at El Gaucho; PDC Executive Director Attends

Portland Oregonian – Brad Schmidt | Published: 2/3/2014

Before Portland’s urban renewal agency approved a deal to develop a Trader Joe’s in the city, Development Commission Executive Director Patrick Quinton attended an event sponsored by a company the city later engaged to purchase the property for the store. Quinton did not disclose the food or drink he consumed. Portland’s lobbying regulations for top executives and elected officials require the disclosure of food, gifts, or entertainment worth more than $25 by someone lobbying the city.

Vermont – Drafting Error Opens Campaign Finance Law Up to Amendment

Bennington Banner – Anne Galloway (VTDigger.com) | Published: 2/6/2014

Vermont Gov. Peter Shumlin signed a campaign finance reform bill into law on January 23. But there was a drafting error – the effective dates were incorrect – and the House Government Operations must address the problem with a technical corrections bill that will be up for action in the coming days. Rep. Cynthia Browning wants to use this opportunity to propose an amendment that would reinstate lower donation and contribution limits in line with the original bills passed by the House and Senate.

Virginia – At Executive Mansion, McAuliffe Puts Out the Welcome Mat

Washington Post – Laura Vozzella | Published: 2/5/2014

In need of Republican friends to get his agenda through a divided Virginia General Assembly, Gov. Terry McAuliffe has restocked the executive mansion bar and thrown open the doors for nightly receptions. McAuliffe’s open invitation is part of a broader effort to win over Republicans who knew the former Democratic National Committee chairperson only through attack ads and media accounts.

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:

More Compliance Chiefs Get Direct Line to Boss

Wall Street Journal – Gregory Millman and Ben DiPietro | Published: 1/15/2014

Many companies have responded to more aggressive government enforcement efforts by touting their compliance programs and even raising the rank of their chief in-house watchdog. But two surveys found the compliance department’s status within a company is often ambiguous.

Top U.S. Corporations Funneled $185 Million to Political Nonprofits

The Center for Public Integrity – Michael Beckel | Published: 1/16/2014

Scores of large companies gave at least $185 million to politically active nonprofits in 2012, according to the Center for Public Integrity. Shadowy spending has targeted elections at all levels, from the White House to state party committees. The extent of financial involvement from major corporations has been unclear, as there has been only a scant paper trail to examine.

Federal:

A Loophole Allows Lawmakers to Reel in Trips and Donations

New York Times – Eric Lipton | Published: 1/19/2014

A loophole in federal law allows members of Congress to hit hot spots like the Napa Valley wine country and famed golf courses, as well as five-star hotels in Puerto Rico, Las Vegas, and Florida, for campaign fundraisers. Campaigns and leadership PACs now pay the expenses for the catering and the lawmakers’ lodging at these events – so they are not gifts – with money collected from corporate executives and lobbyists, who are still indirectly footing the bill.

Super PAC, Outside Spending Chiefs Make Big Bucks

Roll Call – Eliza Newlin Carney | Published: 1/16/2014

New disclosures reveal details about the six- and seven-figure salaries reaped by the political consultants, lawyers, fundraisers, and media buyers who ran the top super PACs and politically active nonprofits in 2012. Such groups spent more than $1 billion in the first presidential contest since the U.S. Supreme Court deregulated independent campaign spending, shattering all previous records, and political professionals cashed in.

From the States and Municipalities:

California – Three Men Charged with Funneling Illegal Campaign Funds

Los Angeles Times – Tony Perry | Published: 1/22/2014

Hundreds of thousands of dollars in illegal campaign contributions from a wealthy Mexican businessperson supported San Diego politicians, according to a federal complaint. A retired San Diego police officer, the owner of a Washington, D.C.-based election services business, and a lobbyist have been charged with conspiring to funnel more than $500,000 in illegal donations into recent campaigns.

Florida – Ex-Sweetwater Mayor Manuel Maroño Sentenced to 40 Months in Prison

Miami Herald – Jay Weaver | Published: 1/23/2014

Former Sweetwater Mayor Manny Maroño was sentenced three years and four months in prison for his part in a kickback scheme. Maroño and lobbyist Jorge Forte pleaded guilty to a conspiracy charge that accused them of illegally splitting $60,000 for official favors and concealing those payments from the public. Both men agreed to promote a sham federal grant program for economic development that was peddled by FBI undercover agents who paid them bribes for their political support in Sweetwater.

Georgia – Ethics Commission Strips Personnel Decisions from Exec. Director

WSB – Sandra Parish | Published: 1/16/2014

Members of the Georgia ethics commission voted to give themselves the power to hire and fire employees, a duty that had been the executive director’s. In addition, the commission took no action concerning its attorney, Elisabeth Murray-Obertein, who is also a key witness in a pair of whistleblower lawsuits against the agency, after a police report said she was intoxicated at work.

Illinois – State Official Returned to Work after Nearly 30 Months of Paid Leave

Chicago Tribune – Jared Hopkins | Published: 1/21/2014

Joel Campuzano was on paid administrative leave for nearly 30 months while investigators in Illinois examined allegations he used his position to benefit himself and his family. During this time, he received seven salary increases. The state lost its fight to fire Campuzano, who returned to work in December and now makes $92,424. State Rep. Jack Franks said he supports the need for thorough investigations but agency directors should be limited in how often they can extend paid leave.

New Jersey – Political Pressure in Zimmer Allegation May Not Constitute a Crime, Legal Experts Say

Bergen Record – Herb Jackson | Published: 1/22/2014

Hoboken Mayor Dawn Zimmer accused New Jersey Gov. Chris Christie’s administration of tying Superstorm Sandy aid to a politically connected development proposal. If Zimmer’s allegations are true, lawyers said the government will need to prove Christie or his administration received or expected to receive some kind of benefit in exchange for pressuring the mayor for a federal crime to have occurred. Attorneys disagreed on how clear-cut that benefit has to be, however.

Ohio – Should Politicians Have the Right to Lie? U.S. Supreme Court Could Decide in Ohio Case

Cleveland Plain Dealer – Sabrina Eaton | Published: 1/22/2014

The U.S. Supreme Court agreed to hear a case challenging an Ohio law that bars candidates and issue groups from lying in their campaigns. The Susan B. Anthony List claims the state’s criminalization of false political speech violates First Amendment rights in a similar fashion to the Stolen Valor Act, which the Supreme Court overturned in 2012. The justices ruled the law that criminalized lying about receiving military honors or decorations violated constitutional free speech rights.

Pennsylvania – Judge Strikes down Pa. Voter ID; High Court Challenge Likely

Philadelphia Inquirer; Associated Press –   | Published: 1/17/2014

A Pennsylvania judge has found the state’s voter ID law unconstitutional. According to the ruling from Commonwealth Court Judge Bernard McGinley, the requirement to present an acceptable form of identification when voting in person “unreasonably burdens the right to vote.” Enforcement of the law has been blocked by court orders pending resolution of the constitutional challenge. Both sides had vowed to appeal an unfavorable decision to the state Supreme Court.

Virginia – Bob McDonnell and Wife Indicted in Gift Scandal

Washington Post – Rosalind Helderman, Carol Leonnig, and Sari Horwitz | Published: 1/21/2014

Former Virginia Gov. Bob McDonnell and his wife, Maureen, were indicted on 14 counts of fraud, conspiracy, and obstructing federal investigators, stemming from a gift-giving scandal. McDonnell and his wife have acknowledged taking gifts from businessperson Jonnie Williams, including catering fees for the wedding of the McDonnells’ daughter. In exchange, authorities allege they worked in concert to lend the prestige of the governorship to Williams’ struggling company, which sells dietary supplements.

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:

A National Strategy Funds State Political Monopolies

New York Times – Nicholas Confessore | Published: 1/12/2014

A sophisticated political apparatus was designed by Republicans to channel political money from around the country into states where conditions were ripe for a GOP takeover. In 2010, the effort achieved striking success, moving a dozen states to sole Republican control. In 2012, a resurgent Democratic version began to catch up, spearheading Democratic takeovers in Minnesota and Colorado. Their combined work has helped remake the nation’s political landscape.

Federal:

How Lobbyists Still Fly Through Loophole

National Journal – Shane Goldmacher | Published: 1/9/2014

A National Journal investigation found that despite efforts to clip the wings of congressional travel planned and paid for by special interests, lawmakers are again taking flight. The reality is that lobbyists who cannot legally buy a lawmaker a sandwich can still escort members on trips all around the world.

From the States and Municipalities:

Arizona – Arizona Lobbyist Pleads Guilty to Misdemeanor

San Francisco Chrionicle – Jacques Billeaud (Associated Press) | Published: 1/13/2014

Two years ago, the Arizona attorney general’s office and FBI raided the Phoenix office of lobbyist Gary Husk as part of a sweeping investigation into a campaign finance scandal involving the Fiesta Bowl. Husk recently pleaded guilty to a single misdemeanor charge and will pay $30,000 to offset part of the cost of the criminal investigation. The state will drop 15 felony charges against him and his firm in the plea deal.

Arkansas – Embattled Ark. Lt. Gov. Ran for Office as Outsider

San Francisco Chronicle – Andrew DeMillo (Associated Press) | Published: 1/10/2014

Lt. Gov. Mark Darr, who was facing the threat of impeachment in the aftermath of a settlement with the Arkansas Ethics Commission, said he would resign on February 1. Although Darr had resisted bipartisan demands for his resignation, he agreed to quit as lawmakers openly discussed removing him from office. State investigators determined Darr had repeatedly broken the law by using campaign money for personal reasons, accepting improper contributions, and maintaining faulty records.

Delaware – Veasey Report Underscores ‘Pay to Play’ as Real Fear for Residents

Wilmington News Journal – Maureen Milford | Published: 1/15/2014

For some in Delaware, a special prosecutor’s depiction of Delaware’s “pay-to-play” culture has only further diminished their trust in government. While E. Norman Veasey outlined many cases of the corrupt culture, no public official will be prosecuted, either because the statute of limitations had expired on the offense or the investigators could not find credible evidence to prove the violation beyond a reasonable doubt.

Massachusetts – Ethics Rules Bar Wellesley Firefighters from Cruise

Boston Globe – Jaclyn Reiss | Published: 1/15/2014

Four Boston area firefighters that talk show host Ellen DeGeneres rewarded with Caribbean cruise tickets for rescuing a dog from an icy river had to return them because of conflicts with Massachusetts ethics law. State law prohibits municipal officials from accepting gifts worth $50 or more because of something they have done in their official job capacity, including payment of travel expenses, which the cruise would probably have fallen under.

Missouri – Approaches Vary for Strengthening Missouri’s Ethics Laws

St. Louis Post-Dispatch – Virginia Young | Published: 1/14/2014

Missouri lawmakers have filed at least 10 bills so far to address various ethics issues. The most comprehensive approach was announced by Secretary of State Jason Kander. House Bill 1340 would reinstate campaign contribution limits, ban lobbyist gifts, require legislators to wait three years before becoming lobbyists, and give the state Ethics Commission more power and resources to enforce the law.

Nevada – Political Groups in Nevada Continue Stubborn Fight against Disclosing Donors

Las Vegas Sun – Andrew Doughman | Published: 1/14/2014

Groups unaffiliated with any candidate will likely spend millions of dollars to bankroll advertisements aimed at Nevada voters, and it is unclear what, if anything, these groups need to say about who is paying for the ads. Judges in several cases are considering whether groups sending political messages must disclose their donors in the state.

Pennsylvania – Cash Gifts Banned in New Philadelphia Board of Ethics Proposal

WHYY – Dave Davies | Published: 1/15/2014

The Philadelphia Board of Ethics has now crafted a proposed standard for gifts that bars a city employee from taking anything worth more than $50 from someone whose interests the employee could affect, and prohibits cash gifts entirely. City law bars employees from accepting gifts “of substantial economic value” from people whose interests they could affect and for months, the board has worked to clarify just what that means.

Texas – Statewide Hopeful Sid Miller Shifted Stocks from Campaign Account to Personal Use to Pay off Loans

Dallas Morning News – David Barer | Published: 1/12/2014

The Texas Ethics Commission is investigating a complaint alleging state Rep. Sid Miller, who is running for agriculture commissioner, improperly loaned his campaign candidate  $10,000 at a 10 percent interest rate in order to personally collect more than $31,000 years later. It appears the ethics agency is also looking into his former campaign’s investment of close to $100,000 in the stock market, which he then transferred to himself after his failed 2012 re-election bid.

Vermont – Vt. Senate Approves Political Money Bill

WCAX; Associated Press –   | Published: 1/16/2014

The Vermont Legislature passed Senate Bill 82, which sets new limits on campaign contributions to candidates, political committees, and parties. The legislation now goes to Gov. Peter Shumlin for his approval.

Virginia – McAuliffe Imposes Far-Reaching Gift Limit on Himself and His Staff

Washington Post – Rachel Weiner | Published: 1/11/2014

Hours after his inauguration, Virginia Gov. Terry McAuliffe signed an executive order that establishes a gift limit of $100 for all administration officials and their families, including the governor himself. Gifts from lobbyists are banned altogether, although anything under $25 is not classified as a gift. The order also creates a three-person ethics commission, including $100,000 in start-up funds, with the authority to monitor compliance and recommend discipline for violators.

Washington – Food Industry Lobby Challenges State Disclosure Law as Unconstitutional

Seattle Post-Intelligencer – Joel Connelly | Published: 1/13/2014

The Grocery Manufacturers Association filed a legal challenge to Washington’s campaign finance disclosure laws. The state has argued GMA ran a money-laundering operation in the 2013 campaign, shielding identities of food manufacturers pouring more than $10 million into the campaign against Initiative 522. The lawsuit challenges the constitutionality of requiring GMA to register a political committee before requesting and receiving contributions to oppose the ballot measure.

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