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.

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:

Koch-Backed Political Coalition, Designed to Shield Donors, Raised $400 Million in 2012

Washington Post – Matea Gold | Published: 1/6/2014

An analysis of tax returns and other documents shows the network of politically active nonprofits backed by billionaires Charles and David Koch and fellow donors in the 2012 elections raised at least $407 million. Its funders remain largely unknown; the coalition was carefully constructed with extensive legal barriers to shield its donors.

Federal:

Political Donors Chase Funding Alternative

Wall Street Journal – Thomas Catan | Published: 1/5/2014

Lawyers are scouring the tax code for financial vehicles that would allow donors to continue to spend money on elections while remaining anonymous. The search for new ways to collect and distribute campaign cash comes because the IRS proposed rules to restrict political activity by social-welfare groups. Their use in campaigns has soared in the last two years, in part because they can accept contributions of unlimited size and do not have to disclose the names of their donors.

Tangled Role in G.O.P. War over Tea Party

New York Times – Eric Lipton | Published: 1/3/2014

Former U.S. Rep. Steven LaTourette has emerged as one of the leaders of the Republican establishment’s battle against the tea party. While he says he is protecting the GOP from extremists, some maintain LaTourette is profiting from his continued presence in the Washington spotlight. His activities have raised questions about whether, in his dual roles, LaTourette violated the federal statute that prohibits lawmakers from lobbying on Capitol Hill for a year after leaving office.

From the States and Municipalities:

Colorado – Colorado GOP Wants to Skirt Campaign Contribution Limits

Washington Post – Reid Wilson | Published: 1/8/2014

Taking the lead of outside political groups who benefit from laws that allow them to receive unlimited political contributions, the Colorado Republican Party is trying to form its own special spending arm. In a petition filed with Secretary of State Scott Gessler, the state GOP asks permission to create an independent expenditure unit to raise and spend money on campaigns. The party is asking Gessler to allow them to accept unlimited contributions, just as super PACs and other outside groups are allowed to do.

Maryland – Md. Lawmakers Conduct Fundraising Frenzy on Eve of Legislative Session

Washington Post – Jenna Johnson and John Wagner | Published: 1/7/2014

When Maryland’s legislative session convened on January 8, so did a ban on collecting campaign donations for lawmakers and statewide elected officials. Although each January is marked by a last-minute cash grab, this year is different. All statewide posts and all 188 seats in the General Assembly will be on the ballot in November, and the primary election has been moved up to June from September, shortening the fundraising window and intensifying the pleas.

Missouri – Missouri’s No-Limit Legislature Stokes Debate over Ethics Reform

Kansas City Star – Jason Hancock | Published: 1/4/2014

Missouri lawmakers returned to the Capitol recently, 12 years after term limits kicked in and six years since caps on political donations officially ended. The combination of those two factors, critics argue, has tipped the legislative scale, with all the experience – and the money – to the lobbying side. Interviews with lawmakers, lobbyists, and political observers reveal a legislative process where outright corruption is rare, but money talks.

Nevada – Judge Allows Ex-Lobbyist Whittemore to Delay Prison

Las Vegas Sun – Sandra Chereb (Associated Press) | Published: 1/3/2014

A judge granted Harvey Whittemore’s motion to postpone prison. Whittemore was sentenced to two years in prison for violating campaign finance laws by using family and friends as “straw donors” to pump more than $130,000 into the campaign of Senate Majority Leader Harry Reid.  Whittemore’s lawyers asked the judge to delay the sentence, arguing the U.S. Supreme Court’s pending ruling in a case challenging individual campaign limits could ultimately have bearing on his appeal.

New Jersey – Christie Fires Aide in Bridge Scandal as U.S. Opens Inquiry

New York Times – Marc Santora and William Rashbaum | Published: 1/9/2014

Gov. Chris Christie fired a top aide at the center of a brewing scandal that officials in his administration orchestrated lane closures on the George Washington Bridge to settle a political score. The governor told a news conference he was stunned by revelations that senior staff members were behind the massive traffic jams in Ft. Lee, designed to punish the town’s mayor, who did not endorse Christie for re-election. The office of the U.S. attorney in New Jersey said it had launched an investigation.

New York – Will Public Financing Push Ever Come to Shove in State

Albany Times Union – Jordan Carleo-Evangelist | Published: 1/5/2014

The decision on whether New York adopts some kind of public campaign finance system will fall largely to the power brokers in the state Legislature, a body so riven with scandal in recent years that some public finance advocates see movement on the question as all but inevitable in the coming months. The push for public financing was at once a centerpiece and the most divisive recommendation in the preliminary report by Gov. Andrew Cuomo’s anti-corruption Moreland Commission.

Virginia – Virginia Lawmakers Detail Ethics Reform Plans

Washington Post – Rachel Weiner | Published: 1/7/2014

Virginia House leaders have spent the past few months hammering out a bipartisan ethics reform proposal, focused on a few key areas. The plan includes a $250 cap on “tangible” gifts from lobbyists and individuals with business before the state. It also would increase financial disclosure reporting requirements from once to twice per year for lobbyists and lawmakers.

Washington – Lobbyist Freebies on Legislative Agenda

The Olympian – Brad Shannon | Published: 1/6/2014

Lawmakers say the divided Washington Legislature might act on the issue of lobbyists buying meals for politicians when they convene for the session that starts on January 13. One bill would give the state Public Disclosure Commission new technology so electronically filed lobbyist reports can be searched and cross-referenced. House Majority Leader Pat Sullivan has complained that lobbyists often report spending for meals for lawmakers at levels much higher than the actual value.

Wyoming – Conservative Wyoming Group Battles Federal Election Commission over Election Law

Casper Star Tribune – Kyle Roerink | Published: 1/3/2014

A conservative Wyoming-based group hopes to take its fight against the FEC to the U.S. Supreme Court. Free Speech is trying to avoid forming a PAC, and disclosing the names of its donors and being limited in how it can solicit funds and spend money. By requiring groups to register, Free Speech claims the FEC imposes a burden on First Amendment rights.

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:

Social Conservatives Make Big Money Plans

Politico – Kenneth Vogel | Published: 1/2/2014

The religious right’s wealthiest backers and top operatives plan to elevate the place of social issues like abortion and gay marriage in conservative politics. They have been largely relegated to the sidelines as the business wing of the Republican Party establishment wages a bitter and expensive struggle against the tea party for the soul of the GOP.

Federal:

Lines Blur When Lobbyists Invest in Industries They Represent

Wall Street Journal – Brody Mullins, James Grimaldi, and Rebecca Ballhaus | Published: 12/26/2013

Through continual contact with public officials, lobbyists often glean intimate knowledge of pending policy changes and political activities that affect the fortunes of companies or industries they represent. Many also hold investments that overlap with their responsibilities, according to a review of public records. It showed about one in five lobbyists whose holdings could be identified had invested in their clients or companies in the industries they are concerned with.

From the States and Municipalities:

Arkansas – Ark. Lt. Gov. Rebuffs Calls to Resign amid Scandal

San Francisco Chronicle – Chuck Bartels (Associated Press) | Published: 12/31/2013

Arkansas Lt. Gov. Mark Darr, who said he would settle with his state Ethics Commission amid findings that he repeatedly broke campaign finance laws, defied mounting calls for his resignation, including one from Gov. Mike Beebe, and said he intended to remain in office. Darr has agreed to pay $11,000 in fines to settle the complaints.

California – Ex-Employee Accuses Lobbying Firm of Directing Illegal Contributions

Los Angeles Times – Patrick McGreevy and Paige St. John | Published: 12/26/2013

A lawsuit filed by former Sloat Higgins Jensen & Associates employee Rhonda Smira alleges owner Kevin Sloat and his firm directed illegal campaign contributions and unreported gifts to dozens of California lawmakers. Smira said she was ordered not to provide receipts for the gifts; that way, recipients could avoid disclosing the transactions on reports required by the state. The lawsuit says Sloat told her: “If I don’t report and there is no written record, and they don’t report it, then it didn’t happen.”

Georgia – Georgia Officials Take Lobbyist Gifts before New Rules

Augusta Chronicle – Ray Henry (Associated Press) | Published: 12/30/2013

Lobbyists splurged on gifts to Georgia lawmakers before restrictions took effect on January 1. Gov. Nathan Deal signed the new rules on May 6. While the state’s political leaders supported an end to unlimited lobbyist spending, the old system remained legal until New Year’s Day. Several politicians accepted gifts during this delay that would be illegal, or at least questionable, once the new restrictions start. Some questions about the law remain unresolved until the ethics commission creates rules interpreting the new law, a process that could take months.

Massachusetts – Teachers Union Revealed as Funder behind Pro-Walsh PAC

Boston Globe – Wesley Lowery | Published: 12/28/2013

The American Federation of Teachers was behind the last-minute, $480,000 advertising push on behalf of Boston Mayor-elect Martin Walsh, even though it was billed as the work of a start-up PAC dubbed One Boston. No information was disclosed at the time about One Boston’s ideological loyalties or donors, angering watchdog groups who had already been critical of the unprecedented amount of outside money that was flowing into the race, which ultimately became the state’s most expensive municipal contest ever.

Michigan – Gov. Snyder Signs Law to Double Michigan Campaign Contribution Limits, Codify ‘Issue Ad’ Rules

MLive.com – Jonathan Oosting | Published: 12/27/2013

Michigan Gov. Rick Snyder signed a bill doubling the state’s campaign contribution limits. The law includes a provision designed to thwart efforts by Secretary of State Ruth Johnson to reveal who pays for issue ads that have become increasingly influential in campaigns. Snyder said the law also increases transparency by requiring candidates to file additional campaign finance reports with the state during years in which they are not up for election.

Minnesota – Minnesota Political Spending Concentrated in Few Hands

Minneapolis Star Tribune – Rachel Stassen-Berger and Glen Howatt | Published: 12/30/2013

The Minneapolis Star Tribune found just three dozen individuals or entities have contributed more than $27 million to PACs and independent expenditure committees over the past three election cycles. The analysis shows the donations heavily favored Democrats. Minnesota Republicans acknowledged Democrats have benefited from superior organization, a more energized base, and campaign finance rules that make it easier for unions to donate.

Missouri – Missouri Lawmaker Wants Political Consultants to Stay Out of Policymaking

Kansas City Star – Dave Helling | Published: 12/24/2013

Missouri Sen. John Lamping filed an ethics reform bill that would prohibit consultants from working as lobbyists, and lobbyists from working as consultants. Lamping said operatives who help elect candidates should not be able to turn around and work for special-interest clients to influence those lawmakers, as is now routinely the case.

New York – Bratton Gives Revolving Door One More Spin

New York Times – J. David Goodman | Published: 12/23/2013

A “revolving door” between government service and the corporate world has long been a feature of politics, and police officials often pursue second careers after hanging up their uniforms. But few have done so with William Bratton’s scope. His return to New York City for a second tour as police commissioner may create an awkward situation. Bratton sits on the boards of two companies who hope to do business with the city, and is a senior adviser to a third.

North Carolina – New NC Law Increases Donation Limits, Curtails Some Disclosure in 2014

Raleigh News & Observer – John Frank | Published: 12/26/2013

North Carolina joined at least eight others states pushing for increases in campaign contribution limits this year. Starting January 1, state candidates and PACs can take maximum contributions of $5,000 per election. The top donation to judicial candidates will leap to the same level from the current $1,000 cap. The new law also weakens rules about what outside groups, such as nonprofits, issue advocacy organizations, and super PACs, must disclose.

South Carolina – S.C. Ethics Commission Owed $2.5 Million in Fines

Charleston Post & Courier – Seanna Adcox (Associated Press) | Published: 1/1/2014

Candidates, lobbyists, and committees owe nearly $2.5 million in fines to the South Carolina Ethics Commission. Under state law, individuals are fined $100 for filing either campaign disclosure or economic interest forms five days late. Once a notice goes out, fines amass daily, up to $5,000 per form. Collecting can be difficult, especially from unsuccessful candidates.

Texas – Texas Republicans Lose 3 Major Donors in 2013

Houston Chronicle – Chris Tomlinson (Associated Press) | Published: 12/30/2013

The deaths this year of three major Republican campaign donors could signal a generational change for party kingmakers. Harold Simmons, Bob Perry, and Leo Linbeck, Jr. gave to Republican candidates and organizations across the country, but their influence was greatest in Texas, which has no limit on personal campaign contributions.

Virginia – Ethics Reform Seems Uncertain in General Assembly

The Daily Press – Dave Ress | Published: 12/29/2013

After a year that saw Virginia Gov. Bob McDonnell and Attorney General Ken Cuccinelli embarrassed by reports of tens of thousands of dollars’ worth of gifts they accepted from a business executive, ethics is again a talking point in Richmond. Gov.-elect Terry McAuliffe plans to issue an executive order banning gifts of more than $100 to executive branch officials, but there is no consensus on whether the Legislature will enact reforms.

Wisconsin – With Audit on the Horizon, the Elections Board Spends another Year in the Crosshairs

Wisconsin State Journal – Mary Spicuzza | Published: 12/29/2013

The Wisconsin Government Accountability Board (GAB), which is made up of six former judges, and its staff are preparing to celebrate their sixth anniversary. But the board is also awaiting the results of an audit ordered by state lawmakers, many of whom have been vocal critics of the agency. “The GAB is a national model, and it would be a tragedy and a travesty if it were eliminated,” said Daniel Tokaji, a law professor at Ohio State University.

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:

Political Advertisers and TV Stations Ignore Disclosure Rules

The Sunlight Foundation – Jacob Fenton | Published: 12/18/2013

The Bipartisan Campaign Reform Act of 2002 requires television stations to make available detailed information about political ad buys, including the names of any elected officials mentioned in the ads and any national issues discussed in them. But a review by the Sunlight Foundation reveals TV stations often fail to report even the most basic information about the political ads that outside groups buy on their airwaves.

Upstart Groups Challenge Rove for G.O.P. Cash

New York Times – Nicholas Confessore | Published: 12/23/2013

At least a dozen super PACs are setting up to back individual Republican candidates for the U.S. Senate, challenging the strategic and financial dominance that Karl Rove and the group he co-founded, American Crossroads, have enjoyed ever since the Supreme Court’s Citizens United decision cleared the way for unlimited independent spending. Some are suggesting Crossroads’ ties to the Republican establishment and recent clashes with conservative activists are a potential liability for GOP incumbents facing tea party challengers.

From the States and Municipalities:

California – Common Cause Seeks New Limits on Gifts to California Officials

Los Angeles Times – Patrick McGreevy | Published: 12/19/2013

California Common Cause proposed reforms to the state’s gift law to reduce the ability of special interests to seek favor by providing expensive meals, lodging, and travel. The group’s recommendations include applying the $10-per-month limit on gifts from lobbyists to also include gifts from the lobbyists’ clients, and reduce the limit on gifts that can be accepted by state elected officials from $440 per source annually to $250.

Georgia – State Ethics Commission Approves Hiring of ‘Internal Mediator’

WABE – Michelle Wirth | Published: 12/19/2013

The Georgia ethics commission hired former administrative law judge Robert Constantine to help with daily operations while federal authorities probe the agency’s investigation into Gov. Nathan Deal’s campaign. Several commission members received federal grand jury subpoenas over the matter. Chairperson Kevin Abernathy said Constantine will serve as an intermediary between the commission and staff members, and will have the ability to help resolve any disputes among agency employees.

Louisiana – Five Years Later, Does Gov. Bobby Jindal’s Ethics System Work?

Baton Rouge Advocate – Marsha Shuler and Mark Ballard | Published: 12/22/2013

At his January 2008 inauguration, Louisiana Gov. Bobby Jindal announced a special legislative session to repair the state’s ethics system, saying he wanted to create a “gold standard.” Some observers say the decrease in violations shows the changes gummed up the works by making proceedings more like criminal prosecutions, with more lawyers, motions, and delays. Supporters of the changes argue the previous system was simply unfair.

Maryland – Half of Md. Lawmakers with Twitter Accounts Neglect to Comply with Disclosure Rule

Washington Post – John Wagner | Published: 12/20/2013

All candidates in Maryland are supposed to include an “authority line” when they promote themselves on social media. The Washington Post identified 92 Twitter accounts maintained by the state’s 188 senators and delegates. Of those, only 45 included authority lines that identify the name of the campaign entity and its treasurer.

Maryland – Md. Elections Board: Brown’s running mate can raise money during legislative session

Washington Post – John Wagner | Published: 12/19/2013

The State Board of Elections cleared the way for Maryland Lt. Gov. Anthony Brown’s gubernatorial campaign to raise money during the legislative session despite a law preventing state officials from seeking contributions during that period. The ruling addressed the issue of gubernatorial candidates and their political partners seeking to be lieutenant governor. While Brown, as a state official, cannot raise money during the session, his running mate, Howard County Executive Ken Ulman, is a local official and thus free to do so.

New York – To Catch a Lobbyist: NYC ordinance aims to catch those flouting registration and vastly expands covered activities

Lexology.com – Alexandra Megaris | Published: 12/17/2013

The New York City Council passed an ordinance revising the lobbying law. The definition of “lobbying” has been expanded, the schedule for filing reports was changed, and the dollar threshold for determining whether registration is required has been increased from $2,000 to $5,000 per calendar year, among other provisions. Most of the law takes effect on May 8, 2014; the registration threshold will become effective on January 1.

Oklahoma – Lawmakers’ Disclosures Reveal Little on Finances

Tulsa World – Curtis Killman | Published: 12/23/2013

Some are questioning what is required to be reported and the value of the information revealed to the public on Oklahoma lawmakers’ financial disclosure reports. In an age of growing transparency, the disclosure requirements provide little information when compared to congressional standards or those in other states.

Utah – More Swallow Revelations: Pay to play, hidden donations

Salt Lake Tribune – Robert Gehrke | Published: 12/20/2013

Investigators for the House Special Investigative Committee said former Utah Attorney General John Swallow and his predecessor, Mark Shurtleff, gave big donors extraordinary access in exchange for campaign contributions and special favors. The revelations upset committee members and several said they now want to continue the five-month probe that was shut down after Swallow announced his resignation.

Virginia – Chef Speaks Out about Va.’s McDonnells

Washington Post – Rosalind Helderman | Published: 12/21/2013

For months, Todd Schneider, the former chef at the governor’s mansion, has been the dramatic but silent figure who launched an investigation that has threatened to bring down Virginia Gov. Robert McDonnell. But he said now that his case is resolved and the governor is ending his term, it is time to speak out. It was Schneider who first alerted authorities that businessperson Jonnie Williams had paid for catering at the wedding of one of McDonnell’s daughters, a tip that spiraled into a broad criminal probe that has brought the governor to the brink of federal charges.

Washington – Washington Ethics Panel Tosses Free Meal Complaint, Encourages Legislature to Clarify Statute

Columbus Republic – Rachel LaCorte (Associated Press) | Published: 12/20/2013

The Legislative Ethics Board dismissed a complaint about some Washington lawmakers accepting free meals from lobbyists. The board said if the state Legislature does not address the issue in the 60-day session beginning in January, the panel will work to establish rules on an enforceable standard.

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

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

Federal:

How Washington Starves its Election Watchdog

The Center for Public Integrity – Dave Levinthal | Published: 12/17/2013

The recent hacking of the FEC’s computer system marked the nadir of a year that ranks among the commission’s darkest, according to an investigation by the Center for Public Integrity. Bitter ideological warfare among commissioners and congressional and White House indifference have yielded an agency less able to fulfill its stated mission: to “prevent corruption in the federal campaign process by administering, enforcing, and formulating policy.”

From the States and Municipalities:

Arizona – Ariz. High Court Upholds Campaign Giving Limits

East Valley Tribune; Associated Press –   | Published: 12/18/2013

The Arizona Supreme Court ruled candidates can accept much larger sums of money from donors. The justices said the Legislature was within its legal right to decide that contenders for both statewide and legislative office can take up to $4,000 from individuals and PACs. The brief order also lifted the injunction an appeals court put in place blocking the higher limits from taking effect.

California – L.A. City Council Drops Push for Increase in Gift Limit

Los Angeles Times – David Zahniser | Published: 12/11/2013

The Los Angeles City Council agreed not to raise the level of gifts that members are allowed to accept from the current $100 per donor per year. Council President Herb Wesson had sought a change in the law to allow members to receive up to $150 in gifts from each supporter, but he dropped that when his and other council members’ offices were deluged with calls.

Colorado – Appeals Court Upholds Ruling against Gessler

Colorado Law Week; Staff –   | Published: 12/12/2013

The Colorado Court of Appeals ruled several changes to campaign finance disclosure regulations made by Secretary of State Scott Gessler were invalid. The court affirmed a lower court ruling that struck down rules that reduced or eliminated disclosure requirements for political committees, and threw out Gessler’s rule that narrowed the definition of “electioneering communications.”

Florida – David Jolly Has Unique Challenge: Lobbyist seeking seat in Congress

Tampa Bay Times – Alex Leary | Published: 12/10/2013

David Jolly parlayed his work as an aide to the late U.S. Rep. C.W. Young into a lobbying career, the quintessential Washington “revolving-door” story. As he pursues the Republican nomination in a congressional special election, opponents have seized on Jolly’s lucrative profession. Many former aides have left for K Street jobs over the years, returning to Capitol Hill to ply a system they know intimately. But it is rare for a lobbyist to run for office, and those who do face the same attacks as Jolly is now.

Georgia – State Sen. Don Balfour Cleared of All Charges

Creative Loafing Atlanta – Max Blau | Published: 12/19/2013

Georgia Sen. Don Balfour was found not guilty on all 18 felony corruption counts against him. He was accused of illegally claiming legislative expense and mileage pay, and double-billing the state and his private employer for some expenses. Balfour told jurors he was very busy as chairperson of the Senate Rules Committee and as an executive of Atlanta-based Waffle House, and the inaccurate filings were unintentional. Gov. Nathan Deal’s office said Balfour’s suspension from office is lifted immediately so he can resume his duties as a senator.

Georgia – Subpoenas Related To Ethics Complaints Involving Georgia Gov. Nathan Deal

Huffington Post – Christina Cassidy (Associated Press) | Published: 12/12/2013

A federal grand jury is investigating the Georgia ethics commission, which cleared Gov. Nathan Deal of campaign finance violations during his 2010 campaign. The grand jury has subpoenaed Executive Secretary Holly LeBarge, staff attorney Elisabeth Murray-Obertein, and staffer John Hair, seeking documents related to the commission’s probe of Deal’s campaign finances. Deal’s lawyer said the investigation likely concerns allegations that documents in the case went missing, and does not involve the governor.

Michigan – Michigan Senate OKs Campaign Donation Increases

Detroit News – Gary Heinlein | Published: 12/12/2013

Michigan lawmakers moved to raise maximum contributions to candidates for the first time in decades and keep intact rules so donors behind certain political ads can stay anonymous. Senate Bill 661 won final approval in the Senate after barely clearing the House a day earlier. Donation limits to candidates would double after going unchanged for 37 years and rise with inflation over time.

Minnesota – Minnesota Lawmakers Probe into Problems with State’s Campaign Finance Data

Minneapolis Star Tribune – Rachel Stassen-Berger and Glen Howatt | Published: 12/16/2013

Minnesota’s campaign finance regulatory agency plans to implement new auditing procedures and seek a law change to deal with errors in its online database of political fundraising transactions. Agency officials testified at a legislative hearing following a Minneapolis Star Tribune analysis that found one in seven electronic records of donations tracked by the Campaign Finance and Public Disclosure Board is incorrect.

Mississippi – Attorney General Jim Hood Appealing Federal Judge’s Ruling on Mississippi Campaign Finance Law

Mississippi Press; Associated Press –   | Published: 12/14/2013

State Attorney General Jim Hood appealed a federal judge’s ruling that part of Mississippi’s campaign finance law creates an unconstitutional burden for people or groups that spend at least $200 to support or oppose a ballot initiative. U.S. District Court Judge Sharion Aycock has said Mississippi may regulate individuals and groups attempting to influence constitutional ballot measures, but its “convoluted and exacting” requirements are too burdensome with the $200 threshold.

New Jersey – Christie’s Top Port Authority Appointee Baroni Resigns amid Escalating Probe into GWB Lane Closures

Bergen Record – Shawn Boburg and John Reitmeyer | Published: 12/13/2013

A burgeoning scandal led to the resignation of Bill Baroni, the deputy executive director of the Port Authority of New York and New Jersey, and David Wildstein, who agreed to step down from his position as director of interstate capital projects. Both men have caught up in a widening investigation into allegations they may have orchestrated a series of massive traffic jams at the George Washington Bridge as political payback against the mayor of Fort Lee, the town at one end of the bridge, for not endorsing Gov. Chris Christie for re-election.

New Mexico – Federal Appeals Court Overturns New Mexico Campaign Funding, Spending Limits

Columbus Republic – Susan Montoya Bryan (Associated Press) | Published: 12/18/2013

The 10th U.S. Circuit Court of Appeals said a lower court was right in issuing a preliminary injunction to keep New Mexico from imposing limitations on certain contributions going to and from political parties and PACs. At issue is whether political committees that are not formally affiliated with a political party or candidate can receive unlimited contributions for independent expenditures. Republicans argue the state’s cap on such donations is unconstitutional.

New York – Where Albany Does Business

Capital Playbook – Jimmy Vielkind | Published: 12/5/2013

Time and again, the gears of government have turned not during official gatherings in meeting rooms at the New York Capitol, but over dinners and drinks at any number of “power spots” around the Albany region. Stop by any of these sites on a Monday or Tuesday night in January or July and you might be surprised who you run into, or what is going on.

Pennsylvania – Board Still Struggling with Phila. Gift Rule

Philadelphia Inquirer – Claudia Vargas | Published: 12/18/2013

Staff members for the Philadelphia Board of Ethics made their latest recommendation on proposed changes to the city’s gift law. The staff proposed barring city officers and employees from accepting any gifts worth more than $100 per year, including $25 in cash, from any nonfamily source. But the board and other ethics advocates are still not happy with the limits and the overall language.

Virginia – In Probe of Va. Gov. McDonnell, Prosecutors Agreed to Delay Decision on Charges

Washington Post – Rosalind Helderman, Carol Leonnig, and Sari Horwitz | Published: 12/19/2013

Federal prosecutors have delayed filing felony charges against Virginia Gov. Bob McDonnell and his wife over a gift scandal after their legal teams made a face-to-face appeal in Washington, D.C. The attorneys had been pressing Justice Department officials to reconsider or delay the charges, at least long enough for McDonnell to complete his four-year term.

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:

ALEC Facing Funding Crisis from Donor Exodus in Wake of Trayvon Martin Row

The Guardian – Ed Pilkington and Suzanne Goldenberg | Published: 12/3/2013

A conservative group that critics say has undue influence on public policy faces a funding crisis and possible legal trouble, show internal documents. The documents indicate the American Legislative Exchange Council is appealing to major donors for help in averting a financial crisis, and is establishing a new project with a different name to help remove “questions of ethical violations made by our critics and state ethics boards,” reported The Guardian.

State Supreme Court Judges Reveal Scant Financial Information

The Center for Public Integrity – Reity O’Brien, Kytja Weir, and Chris Young | Published: 12/4/2013

All 50 states and the District of Columbia have more lax financial disclosure rules for their high court justices than the disclosure requirements for federal judges, according to an analysis by the Center for Public Integrity. Some states do not require any disclosure of gifts to judges; others have limits but with loopholes. The center cited Iowa, which allows these judges to receive gifts worth any amount for their wedding or for their 25th and 50th wedding anniversaries.

Federal:

Capitol Metrics Bridges Lobbying and Data

Washington Post – Catherine Ho | Published: 12/1/2013

There were not many data-driven resources for lobbyists to research their competitors or potential merger partners. Then John Brain got the idea to create Capitol Metrics. It compiles lists of the top lobby firms by revenue, as well as the companies and associations that are spending the most on lobbying. Capitol Metrics also breaks down some of the data and packages it in a way that a lobbyist can better spot opportunities to pick up new business.

SEC Backs Off Corporate Giving Regs

The Hill – Ben Goad | Published: 12/2/2013

The Securities and Exchange Commission dropped a proposal to require publicly traded firms to disclose campaign spending to their shareholders from its list of regulatory priorities, a potential setback for watchdogs looking for ways to force some of the anonymous money in elections into public view. The issue drew more than 650,000 written comments, along with rebukes from trade groups, which argued the push was intended to silence of voice of business in politics.

From the States and Municipalities:

Arizona – Donation Cap for Political Campaigns Still in Place, for Now

East Valley Tribune – Howard Fischer (Capitol Media Services) | Published: 11/26/2013

The Arizona Supreme Court rejected a bid by top Republican lawmakers to allow campaign donors to give more while the justices review the legality of the increase. The justices agreed to give the GOP interests a chance to convince them the Court of Appeals erred in ruling the Legislature acted unconstitutionally earlier this year in approving the sharp increase. A hearing is set for December 17.

District of Columbia – Council Unanimously Approves Campaign Finance Reform Legislation

DCist.com – Matt Cohen and Sarah Anne Hughes | Published: 12/4/2013

The District of Columbia Council unanimously passed a campaign finance reform bill recently. The legislation will restrict contributions from related businesses and require campaigns to report all fundraising data online. The bill also limits money order donations to $100. Lobbyists will have to disclose any contributions bundled and forwarded to a campaign.

Louisiana – Super PAC Backing Sen. David Vitter Says State Has No Choice, Must Lift $100,000 Contribution Limit

New Orleans Times Picayune – Bruce Alpert | Published: 12/4/2013

The Fund for Louisiana’s Future, the super PAC created to support U.S. Sen. David Vitter, wants to end enforcement of the state’s $100,000 limit on independent committee donations. The U.S. Supreme Court’s 2010 ruling that equated spending on independent political expenditures with free speech, and a follow-up decision by a federal appeals court, makes it clear that such limits are unconstitutional, say lawyers for the PAC. Groups favoring limits on campaign spending do not necessarily disagree.

Minnesota – ‘Free Lunches’ Back on Menu for Minnesota Legislators

Minneapolis Star Tribune – Abby Simons | Published: 12/3/2013

For the first time in 19 years, Minnesota lawmakers and their staff will be allowed to eat and drink for free at receptions hosted by special interest groups, as long as all 201 legislators are invited at least five days in advance. Backers of the new law say the easing of what once was one of the strictest gift bans in the nation was needed as a way to restore camaraderie in an increasingly polarized Legislature. The law still prohibits lawmakers from accepting gifts in more exclusive gatherings.

Missouri – Prefiled Bills Suggest Ethics Reform on Agenda

Springfield News-Leader – Jonathan Shorman | Published: 12/4/2013

Eight ethics reform bills have been filed in the Missouri Senate by members of both parties. Senate Bill 486 would cap the amounts any one donor may give to a candidate: $25,000 for gubernatorial and statewide candidates, $10,000 for senators, and $2,500 for representatives and other public offices. Senate Bill 512 requires lawmakers to reimburse lobbyists for expenses within 30 days.

Nevada – Nevada Supreme Court Upholds Ethics Laws

San Francisco Chronicle – Sandra Chereb (Associated Press) | Published: 11/27/2013

The Nevada Supreme Court upheld the state Ethics Commission’s censure of a former Sparks City Council member who voted for a casino project even though his campaign manager was a consultant on the project. The decision reversed an earlier high court opinion that found the ethics law prohibited Councilperson Michael Carrigan from exercising his First Amendment rights to free speech.

New Mexico – New Mexico’s ‘Revolving Door’

Albuquerque Journal – Dan Boyd | Published: 11/29/2013

New Mexico lawmakers are free to resign one day and start lobbying the next. A recent report by a watchdog group identified 26 former legislators who work as lobbyists. Critics say the “revolving-door” practice erodes public trust in government by allowing former lawmakers to cash in on their expertise and connections with former colleagues.

New York – Report: Reform can’t wait

Albany Times Union – Casey Seiler | Published: 12/2/2013

A state commission investigating public corruption in New York recommended a system of public financing for state elections, an independent election-law enforcement agency, and stricter disclosure policies for legislators, saying a “permissive culture of both illegal and legal corruption” must change. Gov. Andrew Cuomo is expected to use the panel’s suggestions as the basis for a series of ethics law changes in 2014.

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.

In honor of Thanksgiving and the short work week, we are publishing our weekly News You Can Use Digest today, instead of Friday.

Federal:

How Much Lobbying Is There in Washington? It’s DOUBLE What You Think

Sunlight Foundation – Tim LaPira | Published: 11/25/2013

The Sunlight Foundation attempted to find out the amount of lobbying that goes on in Washington D.C., but found that quantifying the number is needlessly difficult. It did say about half of those involved in policy advocacy – the term used in the analysis for people in the private sector getting paid to influence public policy, regardless if they meet the strict federal definition of “lobbyist” – did not report lobbying activities in 2012.

Obama Administration Proposes New Curbs on Campaigning by Tax-Exempt Groups

Wall Street Journal – John McKinnon and Brody Mullins | Published: 11/26/2013

Rules proposed by the Obama administration would curtail a broad array of tax-exempt entities’ political activities, including advertising and voter registration. The involvement in politics of groups organized under section 501(c)(4) of the tax code has been viewed by many as the biggest abuse of modern campaign finance rules. The process of completing the new regulations could take months, and officials said they expected a lot of feedback.

Stockman’s Filings Don’t Explain His Income

Houston Chronicle – Lise Olsen and Will Tucker | Published: 11/25/2013

U.S. Rep. Steve Stockman (R-Texas) has failed to properly disclose his financial dealings as candidate and member of Congress. A Houston Chronicle investigation shows Stockman has failed to file federally required expense documents since his 2012 campaign; those he did file were months late and only prompted more questions.

From the States and Municipalities:

California – Political Watchdog Seeks More Bite with New Law

San Francisco Chronicle – Melody Gutierrez | Published: 11/22/2013

The California Fair Political Practices Commission is trying to collect almost $3 million in past fines, and a new law that takes effect on January 1 will aide those efforts. The law allows tax and property liens, along with wage garnishments, for those who have outstanding fines. Commission officials said it can take more than a year to navigate civil courts to obtain those judgments, but under the new law, that time will be reduced to a few months.

Connecticut – After School Shooting, Newtown-Based Gun Industry Group Considered Leaving Town

Columbus Republic – Susan Haigh (Associated Press) | Published: 11/22/2013

The National Shooting Sports Foundation considered moving its offices from Newtown, Connecticut after last year’s shooting at Sandy Hook Elementary School. With employees confronted by angry neighbors and protesters appearing outside its headquarters, foundation officials said they had to determine whether having the name of Newtown associated with the organization would affect its mission to promote hunting and shooting sports.

Iowa – Iowa Ethics Board to Consider New Standards for Reviewing Donations from Trusts

Des Moines Register – Jason Noble | Published: 11/22/2013

Staff members for the Iowa Ethics and Campaign Disclosure Board will develop new standards for auditing PACS that receive contributions from entities other than individuals. The move could lead to new procedures for reviewing donations from trade associations, LLCs, partnerships, and trusts. The board will hear proposals for the new guidelines at its next meeting and could act to implement them at that time.

Louisiana – State Plans to Go After Bank Accounts, Licenses of Officials with Pending Ethics Fines, Treasurer Says

New Orleans Times Picayune – Lee Zurik (WVUE) and Manuel Torres | Published: 11/22/2013

Louisiana’s Debt Recovery Office will be used to crackdown on officials, political groups, and lobbyists that owe more than $1.2 million in ethics fines. The new office will have the power to collect money directly from the personal bank accounts of those with outstanding state debts. It also will be able to suspend debtors’ state licenses, including licenses for professional accreditations, and even for hunting and fishing.

Maryland – Brown Hosts Influential Guests in Redskins Stadium Skybox

Baltimore Sun – Luke Broadwater and Michael Dresser | Published: 11/22/2013

Maryland Lt. Gov. Anthony Brown, who is running for governor, has hosted lobbyists, campaign donors, and union leaders in the state’s skybox at FedEx Field for Washington Redskins’ games. Ethics rules prohibit politicians from accepting sporting tickets as gifts from those who do business with the state, but they say nothing about politicians distributing such tickets.

New Jersey – NJ Businesses Paying Top Dollar for Access to Republican Governors Association

Bergen Record – Melissa Hayes | Published: 11/24/2013

Of the $24 million the Republican Governors Association (RGA) raised in the first six months of the year, New Jersey benefactors gave $1.6 million. Montclair State University professor Brigid Harrison said corporations who see Gov. Chris Christie as a potential presidential candidate could increase their donations to the RGA while he is chairperson next year to get his attention and “curry favor” with someone who could go on to the White House.

New York – Legislators Seek to Kill Subpoenas

Albany Times Union – Rick Karlin and Jordan Carleo-Evangelist | Published: 11/22/2013

State lawmakers filed court papers to block subpoenas from the Moreland Commission on Public Corruption that seek information about elected officials’ sources of outside income. The central question is whether the century-old Moreland Act gives gubernatorial appointees the power to subpoena lawmakers, or whether the constitutional separation of powers provides protection from probes.

Oklahoma – Late Campaign Reports Rack Up $723,000 in Fees

Tulsa World – Barbara Hoberock and Curtis Killman | Published: 11/26/2013

A Tulsa World analysis indicates at least 2,700 campaign finance reports, amounting to about 10 percent of the total number filed in Oklahoma, were sent in late. The amount in late fees came to at least $723,300. The Oklahoma Ethics Commission will send notices to 250 PACs believed to owe penalties for not meeting the deadlines. The agency is looking at reports filed since August 2011, but has not ruled out going further back.

Virginia – Virginia Campaign Mailings Attract Scrutiny

Roanoke Times – Mike Gangloff | Published: 11/20/2013

An arrangement for low rates on campaign mailers that some Virginia General Assembly members and candidates describe as standard seems to violate U.S. Postal Service requirements, said Katina Fields, a spokesperson in the postal service’s Washington, D.C. headquarters. At issue is how closely state Democratic and Republican parties coordinate their activities with the individual campaigns of their candidates.

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:

‘Citizens United’ Ruling Helped Unions Win State Elections

The Center for Public Integrity – Alan Suderman and Ben Weider | Published: 11/14/2013

Nonprofits, super PACs, and other non-candidate groups reported spending at least $209 million to influence elections in 38 states in 2012, according to the Center for Public Integrity. More than one out of every two dollars spent originated from groups funded primarily or entirely by out-of-state donors. Even seemingly local entities, like state parties, were recipients of huge influxes of outside cash.

Federal:

FEC: Donors can’t use bitcoins for contributions

San Diego Union Tribune – Jack Gillum (Associated Press) | Published: 11/21/2013

The FEC said bitcoins cannot be used for contributions to political organizations at this time. Bitcoin is a cybercurrency that is relatively anonymous and is created and exchanged independently of any government or bank. Some retailers accept it, and the currency can be converted into cash after being deposited into virtual wallets. But the FEC is not yet sold on allowing bitcoins to funnel into the accounts of campaigns and outside groups supporting them.

Navy Was Warned of Contractor at Center of Bribery Inquiry

New York Times – Christopher Drew | Published: 11/20/2013

Leonard Francis, a wealthy Malaysian contractor, is at the center of a widening investigation into an overbilling scheme in which federal prosecutors say he used cash, prostitutes, and gifts to bribe U.S. Navy officials to help him defraud the service. Despite red flags over his business practices, the Navy awarded Francis $200 million in contracts, giving him control over providing supplies and dockside services for its fleet across the Pacific.

From the States and Municipalities:

California – What a Day for Political Ethics in California

Sacramento Bee – Laurel Rosenhall | Published: 11/16/2013

On the same day, the Democratic leader of the California Senate addressed the latest allegations in an FBI corruption probe, a state senator took the witness stand to testify he had not engaged in money laundering, and the Fair Political Practices Commission handed down fines to one current and two past lawmakers who admitted campaign finance violations.

Colorado – Ethics Complaint against Rocky Mountain Gun Owners’ Lobbyist Dismissed; Federal Lawsuit Still Pending

Denver Post – Lynn Bartels | Published: 11/19/2013

A legislative committee said there is not enough evidence to settle an ethics complaint against Joe Neville, a lobbyist for Rocky Mountain Gun Owners. He allegedly threatened state Rep. Cheri Gerou with political retribution if she did not oppose all of the Democratic bills aimed at strengthening gun laws earlier this year. Neville could still face disciplinary action including a two-year suspension of his lobbying privileges at the Capitol.

District of Columbia – Capital Gains: Spending on contracts and lobbying propels a wave of new wealth in D .C.

Washington Post – Greg Jaffe and Jim Tankersly | Published: 11/17/2013

Tens of thousands of the nation’s best-educated workers have flocked to the Washington, D.C. region, some for contracting jobs, and some simply to be part of the newly energized business climate. The avalanche of cash that made Washington rich in the last decade has transformed the culture of a once staid capital and created a new wave of well-heeled insiders.

Louisiana – Apparent Campaign Violations, Large Expenses Should Prompt Reforms in Louisiana Law, Some Say

New Orleans Times Picayune – Lee Zurik (WVUE) and Manuel Torres | Published: 11/20/2013

A review of Louisiana’s campaign finance system by The New Orleans Times Picayune is prompting calls for reform. The analysis found individual donors and special interests can legally bundle corporate and personal contributions to exert outsized influence. It also discovered politicians who collected large amounts in over-the-limit, and apparently illegal, contributions, yet went undetected by the state Board of Ethics.

Michigan – State Senate Aims to Quash Proposal for Greater Transparency in Political Ads

Detroit Free Press – Paul Egan and Kathleen Gray | Published: 11/14/2013

Secretary of State Ruth Johnson said she intends to expand Michigan’s campaign disclosure rules to include issue ads, but the state Senate promptly passed a bill that would slam the door on her proposal. An amendment was added to a bill doubling the state’s campaign finance contribution limits that would allow sponsors of ads not specifically urging a vote for or against a candidate to remain anonymous.

Nevada – Judge Imposes $110,000 Fine over PAC’s Pro-Sandoval Ads

Las Vegas Sun – Cy Ryan | Published: 11/18/2013

A judge levied a fine of $109,560 against the Alliance for America’s Future over advertising that supported Nevada Gov. Brian Sandoval. The PAC did not register in the state as required by law and never filed any reports detailing its expenditures. District Court Judge James Wilson rejected the group’s claim that the law was unconstitutional.

New Jersey – Annual Political Schmooze Fest Begins in Atlantic City Today

NJ.com – Darrel Isherwood | Published: 11/19/2013

Approximately 18,000 officials will attend the annual League of Municipalities convention in Atlantic City this year. The event is more well-known for parties than its training sessions. “I’ve gone to the [convention] for the past 15 years and I’ve only paid to attend the sessions twice in that time,” said one prominent lobbyist.

Ohio – State School Board Lobbyists Deny Conflict of Interest

Columbus Dispatch – Doug Livingston (Akron Beacon Journal) | Published: 11/17/2013

At least four state school board members in Ohio have business and private interests that compete directly for education money. They maintain there is no problem with this activity as they police themselves, abstain from voting as necessary, and file statements with the Ohio Ethics Commission. While state lawmakers cannot lobby while in office, Ethics Commission Executive Director Paul Nick said the lobbying law does not address the state school board.

Oklahoma – Rep. Reynolds Blasts Ethics Commission for Proposed Rules

Norman Transcript; Staff –   | Published: 11/19/2013

State Rep. Mike Reynolds criticized the Oklahoma Ethics Commission for its proposed changes to lobbyist reporting and registration rules, along with other reforms. Lobbyists’ employers are now prohibited from spending more than $100 per calendar year per lawmaker. But the commission would allow principals to provide $500 for meals and other gifts, among other changes. Reynolds said will introduce a resolution during the upcoming legislative session to disapprove the proposed rules.

Pennsylvania – Officials, Others Slam Proposed City Ethics Rule

Philadelphia Inquirer – Claudia Vargas | Published: 11/20/2013

Many witnesses at a Philadelphia Board of Ethics hearing criticized a plan to place specific limits on the city’s vague gift rules. The proposed caps, meant to better define the current law, would allow city officers and employees to accept gifts of up to $200 in value per year from any single source, including cash payments of up to $50.

Utah – Utah A.G. John Swallow Cuts Deal, Will Resign to Avoid Criminal Charges, Source Says

Deseret News – Lisa Riley Roche and Dennis Romboy | Published: 11/21/2013

Utah Attorney General John Swallow is expected to resign in the face of mounting investigations and a report from the lieutenant governor’s office that recommended charging him with three misdemeanors. His departure would allow Swallow to avoid any effort by a special counsel to seek his removal for multiple violations of election law. It also could bring to a close a months-long fact-finding investigation by the state House that could be laying the groundwork for his potential impeachment.

Wisconsin – Report: Investigation targets Scott Walker recall campaign, political groups

Chippewa Herald – Dee Hall | Published: 11/18/2013

Wisconsin Gov. Scott Walker’s campaign and more than two dozen conservative groups were recently subpoenaed by a special prosecutor, according to the editorial page of The Wall Street Journal. Wisconsin Democracy Campaign Executive Director Mike McCabe said based on the report, the investigation appears to be zeroing in on whether issue ad groups illegally coordinated with campaigns during the effort to recall Walker and legislative leaders.

National:

Initiative Spending Booms Past $1 Billion as Corporations Sponsor Their Own Proposals

Washington Post – Reid Wilson | Published: 11/7/2013

The initiative process, originally aimed at giving citizens the chance to break industry’s hold on state Legislatures, is increasingly becoming the domain of corporations and wealthy individuals who advance new laws for their own advantage, bypassing reluctant lawmakers and spending millions of dollars along the way. More than $1 billion has been spent in the past 18 months on ballot initiatives in just 11 states.

Federal:

FEC Poised to Allow Bitcoin Campaign Donations

Politico – Byron Tau | Published: 11/7/2013

A draft proposal from the FEC would allow campaigns to accept, but not spend, the digital currency Bitcoin. According to the proposal, the currency will count as an in-kind contribution to a campaign, like a stock or bond. The agency will not consider them currency.

Pro-Democratic Super PACs Outspend Conservatives

USA Today – Fredreka Schouten | Published: 11/12/2013

Liberal super PACs have spent $10.8 million on federal races this year, twice as much as conservative super PACs. Much of the money has flowed to a handful of elections to fill congressional vacancies. Liberal money also makes up 70 percent of the election-related federal spending by so-called dark money groups – politically active non-profits that do not have to disclose the sources of their money.

From the States and Municipalities:

California – FBI Capitol Sting Shines Light on Latino Caucus

Sacramento Bee – Laurel Rosenhall | Published: 11/10/2013

The details of the most recent leadership fight at the California Legislature’s Latino Caucus caught the attention of FBI agents investigating one caucus member, state Sen. Ron Calderon, for allegedly taking bribes. The emerging case has exposed caucus decisions to public view just as the group’s influence is peaking. The 25 members constitute more than a fifth of the Legislature, control hundreds of thousands of dollars in campaign funds, and wield influence that affects millions of Californians.

Florida – Sweetwater Mayor, Lobbyist Plead Guilty

Miami Herald – Jay Weaver | Published: 11/13/2013

Suspended Sweetwater Mayor Manuel Maroño and lobbyist Jorge Forte pleaded guilty to charges of conspiring to commit honest services fraud. Two others facing similar charges resulting from the same FBI sting operation are former Miami Lakes Mayor Michael Pizzi and lobbyist Richard Candia. The two corruption cases were remarkable even by South Florida’s standards as the crackdown snared two mayors and two lobbyists on the same day.

Georgia – Ga. Governor Suspends Indicted Lawmaker Accused of Illegally Claiming Expense Pay

Columbus Republic – Kate Brumback (Associated Press) | Published: 11/13/2013

Georgia Gov. Nathan Deal suspended state Sen. Don Balfour from office. A review committee recommended the action after a grand jury indicted Balfour on felony charges of illegally claiming legislative expense pay and double-billing the state and his private employer for some expenses. He previously agreed to pay a $5,000 fine issued by the Senate Ethics Committee for accepting pay for in-state work and travel on days when he was elsewhere.

Illinois – Rahm Emanuel to Propose Ordinance Forcing Contractors to Report Corruption

Chicago Sun Times – Fran Spielman | Published: 11/12/2013

Mayor Rahm Emanuel proposed a measure that would require city contractors to immediately report knowledge of corruption to Chicago’s inspector general or risk losing their contract. Emanuel’s office said the measure, if approved, would be incorporated into all future city contracts.

Illinois – Rauner’s $500,000 Donation to Lift Fundraising Limits in Gov. Race

Chicago Sun Times – Natasha Korecki and Dave McKinney | Published: 11/13/2013

Illinois gubernatorial candidate Bruce Rauner is adding $500,000 of his own money to his campaign, an amount that will trigger a provision allowing his opponents to raise unlimited amounts of cash. Under the law, candidates can only accept contributions of up to $5,300 from individuals and $52,600 from PACs. But those caps are lifted if any statewide candidate or member of the candidate’s immediate family donates or loans more than $250,000 to his or her campaign during the 12 months prior to an election.

Louisiana – Louisiana Ethics Board’s Focus on Small Offenses Lets Larger Violations Go Unnoticed, Observers Say

New Orleans Times Picayune – Lee Zurik (WVUE) and Manuel Torres | Published: 11/12/2013

Critics say the Louisiana Board of Ethics spends too much of its time going after candidates who file late, essentially ignoring more serious violations. Board of Ethics Administrator Kathleen Allen said her agency does not have enough personnel or a legal mandate to regularly audit even a small percentage of the thousands of campaign finance reports filed every year.

Massachusetts – Campaign Bill Would Order Fast Disclosure of Donors

Boston Globe – Michael Levenson | Published: 11/12/2013

Outside political committees pumped nearly $4 million into the Boston mayoral election this year, most of it to help elect Martin Walsh. But current law does not require those groups to reveal their donors until January. Secretary of State William Galvin and several lawmakers are preparing legislation that would require outside groups to disclose their donors in real time.

Minnesota – Minnesota Campaign Finance Regulators’ Database Isn’t Adding Up

Minneapolis Star Tribune – Glenn Howatt and Rachel Stassen-Berger | Published: 11/9/2013

An analysis by the Minneapolis Star Tribune shows online data from the Minnesota Campaign Finance and Public Disclosure Board are rife with mistakes, leading to errors that total as much as $20 million over the past decade. The flaws are enough to hamper any comprehensive attempt to examine the flow of political money in the state, at a time when that spending has soared to record heights.

New York – NY Democratic Committee’s Pro-Cuomo Ads Questioned as Skirting Lobbying Law, Public Disclosure

Columbus Republic; Associated Press –   | Published: 11/14/2013

Watchdogs contend television ads by the state Democratic Committee that urge residents to contact lawmakers in support of Gov. Andrew Cuomo’s ethics and jobs legislation violate New York’s lobbying law. The law requires those seeking to influence legislators be registered as lobbyists so they are publicly identified and disclose their funding and spending. Political parties and committees have long believed they were exempt.

Pennsylvania – Lobbyist Penalty Reforms Pass Pa. House

WHTM – Myles Snyder | Published: 11/13/2013

The Pennsylvania House unanimously approved a bill that would increase penalties for lobbyists who break the law. House Bill 744, which now moves to the Senate, would raise the maximum fine the state Ethics Commission can impose from $2,000 to $10,000, and it would up the current five-year ban on lobbying to 10 years, among other provisions.

Vermont – Democratic PAC Must Pay $30,000 Penalty

Burlington Free Press – Nancy Remsen | Published: 11/13/2013

Green Mountain Future, a PAC created by the Democratic Governors Association, will pay the state of Vermont a $20,000 civil penalty for not including its address on its website or television ads against Republican gubernatorial candidate Brian Dubie during the 2010 campaign. The group also must pay $10,000 for not registering as a PAC or filing campaign finance reports.

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. Weighs Limiting Clout of Right Wing

New York Times – Jeremy Peters and Jonathan Martin | Published: 11/7/2013

Mainstream Republican Party leaders complain that more ideologically-driven conservatives are damaging the GOP with tactics like the government shutdown. They are pushing their party to rethink how it chooses nominees and advocating changes they say would result in the selection of less extreme candidates.

Federal:

Third Navy Official Arrested in Bribery Probe

Washington Post – Craig Whitlock | Published: 11/7/2013

A third U.S. Navy official, Commander Jose Sanchez, was charged with receiving bribes, including cash and prostitutes, from a contractor who provides port services for American ships in Southeast Asia. Another commander and a senior investigator for the Naval Criminal Investigative Service were arrested in September, likewise on charges of providing inside information to Glenn Defense Marine in exchange for favors.

From the States and Municipalities:

Arizona – Attorney Asks AZ Supreme Court to Reinstate Increased Campaign Donations

East Valley Tribune – Howard Fischer (Capitol News Service) | Published: 11/4/2013

Arizona’s Republican legislative leaders are asking the state Supreme Court to allow higher campaign contribution limits to be reinstated, citing confusion among candidates and donors. The filing is the latest in a legal volley over House Bill 2593, which raised contribution limits nearly 10-fold for candidates in all offices, from school board to governor.

California – California Donor Disclosure Case Exposes How Nonprofits Can Play in Politics

Washington Post – Matea Gold and Tom Hamburger | Published: 11/4/2013

New revelations in California provide a glimpse at one national network of nonprofit groups that helped move $15 million into ballot-initiative campaigns last fall while working hide the identities of their donors. Two conservative nonprofits were together fined a record $1 million, while two political committees were ordered to repay the state for $15 million in donations they received.

California – San Diego City Attorney Maneuvered to Force Filner from Office

Los Angeles Times – Tony Perry | Published: 11/3/2013

For six weeks, San Diego City Attorney Jan Goldsmith maneuvered to force then-Mayor Bob Filner out of office by squeezing him financially, bluffing him about state law, embarrassing him by releasing documents showing the anger of his staff, and threatening to force a trial on his alleged misuse of public funds. On the eve of a court hearing, Filner finally resigned.

Connecticut – State Parties Unable to Wean Themselves off Special Interest Money

The News Times – Neil Vigdor | Published: 11/2/2013

A loophole in Connecticut’s campaign finance law allows the state’s major political parties to accept money from contractors and lobbyists. It has drawn scrutiny since a California fundraising trip by Gov. Dannel Malloy, who is the subject of a complaint filed by the state Republican Party with the Election Enforcement Commission.

Florida – Lawmakers-Turned-Lobbyists Help Tip Scales for Large Lobbying Firms

St. Augustine Record – Matt Dixon (Morris News Services) | Published: 11/4/2013

Florida’s lobbying corps includes former governors, agency heads, House and Senate leaders, and lawmakers and executive branch officials. Opponents say the practice amounts to elected officials and agency staff using taxpayer-funded jobs to later cash in on high-paying lobbying positions. Lobbying firms say former insiders are needed to help clients navigate a complex state government.

Florida – Tallahassee Lobbyists Won’t Be Audited until 2015

Orlano Sentinel – Aaron Deslatte | Published: 11/4/2013

A Florida legislative committee adopted rules for the long-delayed auditing of lobbyists’ financial reports. Sen. Joe Abruzzo said no reviews will be done next year but auditors will begin studying the 2014 reports in 2015. The draft guidelines allow for lobbying firms to keep some documentation confidential, but also will allow lawmakers critical of the mandate to repeal it during the next legislative session.

Kentucky – Richie Farmer’s Sister Gets Five Years’ Probation

Louisville Courier-Journal – Mike Wynn | Published: 11/1/2013

Rhonda Monroe, the sister of former Kentucky Agriculture Commissioner Richie Farmer, received five years’ probation for her role in a campaign finance scheme that allowed her brother to take money from his 2007 re-election fund. Monroe was accused of using her position as assistant executive director of the state Registry of Election Finance to help Farmer pocket leftover campaign cash with phony expense claims.

Louisiana – Louisiana’s Top 400 Campaign Donors Get Around Legal Limits to Magnify Political Influence

New Orleans Times Picayune – Lee Zurik (WVUE) and Manuel Torres | Published: 11/6/2013

Searching the mountain of state and local records, reporters identified hundreds of donors who gave from tens of thousands of dollars to more than $1 million to campaigns across Louisiana in the four years that ended in 2012. The journalists said the records show wealthy special interests and businesses are able to magnify their influence through loopholes, lax enforcement, and weak penalties to take advantage of the system.

Nevada – Nevada Judge Dismisses Suit against AFP

San Francisco Chronicle – Sandra Chereb (Associated Press) | Published: 11/6/2013

A District Court judge ruled Americans for Prosperity was not required to register with the state or file contribution reports as argued in the civil lawsuit filed by Nevada Secretary of State Ross Miller. The group is funded by conservative billionaires Charles and David Koch.

New York – New York City Takes Left Turn

Wall Street Journal – Sophia Hollander | Published: 11/6/2013

Political analysts say the election of Democrat Bill de Blasio as mayor of New York City could become the biggest test yet of a recent revival of liberalism in American political life that is occurring in urban areas. In 2000, Republicans led five of the nation’s largest dozen cities. By the end of 2012, they no longer led any.

Oklahoma – Oklahoma Lawmakers Question Conduct after Convictions

Seattle Post-Intelligencer – Tim Talley (Associated Press) | Published: 11/2/2013

Last year, former Oklahoma Senate President Pro Tem Mike Morgan was convicted of taking a $12,000 bribe in exchange for his influence on legislation. This year, state Rep. Randy Terrill was convicted of offering a legislative colleague a state job in exchange for her promise not to seek re-election. Lawmakers are considering whether the way they conduct the people’s business and the multiple prosecutions will chill legislative debate and action.

South Carolina – State House for Sale: Big businesses pay off in jobs, political contributions

The State – Jeff Wilkinson | Published: 11/2/2013

Scores of companies have donated to the campaigns of individual South Carolina candidates in a melding of corporate money and public policy that is banned in 21 states and in federal elections. Corporate officials say those contributions are not an effort to buy legislative votes on a particular issue. Watchdogs maintain corporate donations are just the tip of the iceberg in a political system that favors big business over others.

Texas – Candidates to Lead Texas Accept Meals, Gifts, More from Lobbyists

Dallas Morning News – Christy Hoppe | Published: 11/2/2013

All of the major candidates for governor and lieutenant governor in Texas have, to varying degrees, kept company with lobbyists, show dozens of disclosure reports examined by The Dallas Morning News. In the last five years, they have received tens of thousands of dollars worth of meals, gifts, and help holding campaign fundraisers, all from representatives of companies and industries with major business before the state.

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:

Michelle Obama Policy Initiatives Are a Big Deal for Big Business

Politico – Byron Tau and Helena Bottemiller Evich | Published: 10/30/2013

First lady Michelle Obama’s two signature policy initiatives, the Let’s Move! childhood obesity effort and the veteran-focused Joining Forces, have earned her bipartisan praise. Those efforts have been developed in close cooperation with some of K Street and corporate America’s biggest players that stand to benefit from the exposure, public goodwill generated from being involved in a public health or charitable effort, or the policy itself.

From the States and Municipalities:

California – California State Sen. Ron Calderon Accepted $88,000 in Bribes, FBI Affidavit Alleges

Sacramento Bee – Laurel Rosenhall | Published: 10/30/2013

California Sen. Ron Calderon allegedly accepted about $88,000 in bribes from an undercover FBI agent during an elaborate sting operation. An affidavit, filed as the FBI sought a search warrant for Calderon’s office, alleges he worked with interest groups in a “pay-to-play” fashion, accepting money in exchange for promises to carry or amend legislation to their benefit.

California – Critics Howl over Lobbyist Walking Governor’s Dog

San Francisco Chronicle – Carla Manucci | Published: 10/24/2013

Some are questioning whether Jennifer Fearing, senior state director for the Humane Society of the United States, has turned her role as regular walker of California Gov. Jerry Brown’s dog into an effective way to lobby the state’s chief executive on animal rights issues. Fearing had a perfect record this legislative season in getting bills signed by Brown, placing her in the ranks of Sacramento’s most effective lobbyists.

California – L.A. Moves to Boost Limits on Gifts to Lawmakers

Los Angeles Times – Steve Zahniser | Published: 10/25/2013

The Los Angeles Ethics Commission sent the city council its recommendation for new and more stringent limits on gifts to the city officials, part of a much larger package of rule changes. But when the council took up the proposal recently, they sought an increase, not a decrease, in the size of allowable gifts from bidders, contractors, and others with a financial stake in a city decision.

Colorado – Group Tests New Tactic with Ethics Complaint against Gov. Hickenlooper

Denver Post – Lynn Bartels | Published: 10/31/2013

Some groups are using ethics complaints to impugn the integrity of candidates in Colorado, even when the complaint is found to be without merit. The move has attracted bipartisan criticism.

Florida – Lobbyist Watch: Superlobbyist Platt’s “Rules for Successful Lobbying”

South Florida Sentinel – Brittany Wallman | Published: 10/29/2013

Broward County lobbyist George Platt has come up with guidelines for being successful in the influence industry. “Somehow the list grows as time passes … [there are] too many who lack a moral compass trying to become lobbyists; unlike some professions, there is no set of qualifications for entry,” said Platt.

Iowa – Big Campaign Group Gets Involved in Tiny Iowa Race

Business Week – Ryan Foley (Associated Press) | Published: 10/31/2013

Americans for Prosperity, the organization backed by the billionaire Koch brothers, has jumped into the municipal election in Coralville, Iowa and turned it into a referendum on government spending and borrowing. Residents of the town, with a population of 19,000, say they have never seen such an outside effort in a local vote, let alone by a conservative group in the state’s most Democratic county.

Iowa – Iowa Senate Ethics Rule Protects the ‘First-in-the-Nation’ Franchise

Quad City Times – James Lynch | Published: 10/24/2013

State Senate Ethics Committee Chairperson Wally Horn said the chamber’s rule prohibiting senators from being paid staffers of campaigns and PACs is there to protect the franchise of Iowa’s first-in-the-nation presidential caucuses. Other states that closely follow Iowa in the nomination process do not seem to share Horn’s concern, however.

Nevada

Embattled Nevada Assemblyman Jim Wheeler Urged to Resign after Slavery Comment

Reno Gazette-Journal – Sandra Chereb (Associated Press) | Published: 10/30/2013

A YouTube video surfaced of an event at which Nevada Assemblyperson Jim Wheeler said he would vote to allow slavery if that was the desire of his constituents. He said he believes it is his job to represent those who elected him regardless of his own beliefs. “If that’s what they wanted, I’d have to hold my nose … they’d probably have to hold a gun to my head, but yeah,” said Wheeler.

Nevada – Public Policy Maker or Private Lobbyist? 10 State Officials Play Dual Roles

Las Vegas Sun – Andrew Doughman | Published: 10/27/2013

Disclosure reports filed with the Nevada Commission on Ethics detail how legislators and members of state boards and commissions often get paid to do business before state agencies, boards, and commissions. Their elected or appointed positions likely enable them to build relationships and gain expertise useful in their private enterprise, a fact recognized by lawmakers when they passed a disclosure law in 1991.

New Mexico – Report Examines NM Lobbyists’ Largesse

Albuquerque Journal – Deborah Baker | Published: 10/31/2013

A report from New Mexico Common Cause said spending on lobbying “plays an influential role” in state lawmakers’ votes. Common Cause had several recommendations for regulating lobbyists, including requiring more specific information on disclosure reports and limits on their cumulative campaign donations.

New York – Turmoil in Ethics Hiring

Albany Times Union – James Odato | Published: 10/29/2013

The Joint Commission on Public Ethics hired Letizia Tagliafierro as its new executive director during a closed door meeting. In the brief public part of the meeting, commission member Ellen Yaroshefsky proposed what she called an independent search for an executive director. Yaroshefsky later resigned from the panel.

Oklahoma – Ex-Okla. Lawmaker Guilty in Bribery Trial

BusinessWeek – Tim Talley (Associated Press) | Published: 10/30/2013

Former Oklahoma Rep. Randy Terrill has been convicted of bribery. Prosecutors alleged Terrill offered to put former Democratic Sen. Debbe Leftwich in an $80,000-a-year job at the state medical examiner’s office if she would agree to not seek re-election in 2010 so a Republican, Rep. Mike Christian, could run for her open seat.

South Dakota – Power Shift Sought in Pierre: Governor’s office has been dominating legislative process

Sioux Fall Argus Leader – David Montgomery | Published: 10/30/2013

South Dakota legislative have begun looking for ways to strengthen their voice in state policy debates. Compared to the executive branch, with a full-time governor and his or her year-round staff, along with myriad state employees, South Dakota’s part-time citizen Legislature has fewer resources, less information, and less time to tackle problems.

Virginia – McAuliffe’s Wealth Could Create Conflicts of Interest

The Virginian-Pilot – Julian Walker | Published: 10/31/2013

If Terry McAuliffe becomes Virginia’s next governor, his business interests could trigger conflicts-of-interest. His campaign says his investments would go into a blind trust, but Republicans remain skeptical, given their view of McAuliffe’s history as a political financier with interests they say could intersect with a governor’s duties.

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.