National:

Lobbying Bonanza as Firms Try to Influence European Union

New York Times – Eric Lipton Danny Hakim | Published: 10/18/2013

As the European Union has emerged as a regulatory superpower, its policies have become ever more important to corporations operating across borders. In turn, the lobbying business in Brussels has become larger and more competitive, rivaled only by Washington, D.C. Some say American law firms are undercutting efforts to bring more transparency to lobbying in the Belgian capital, citing lawyer-client confidentiality to evade a government-backed but voluntary disclosure effort.

State Pro-Business Organizations Are Publicly Funded, but Privately Controlled

The Center for Public Integrity – Nicholas Kusnetz | Published: 10/23/2013

Some states have given control over corporate tax incentives to public-private partnerships that are often run by the states’ most influential businesspeople. Supporters say these partnerships are more nimble than government bureaucracies and are insulated from electoral politics. But much of the spending remains secret. Even most public agencies do not disclose the recipients of all the incentives because of tax privacy laws.

Federal:

Cassidy Lobby Shop Goes Social

Washington Post – Catherine Ho | Published: 10/18/2013

With the lobbying business at a standstill on K Street, even big firms such as Cassidy & Associates have to embrace new ways of reaching policymakers and clients to protect their bottom lines. Cassidy has been trying to attract visitors to its Web site, which the firm has spent the last year overhauling to attract more potential clients through Twitter, Facebook, LinkedIn, and YouTube.

From the States and Municipalities:

Alabama – Alabama Considers Creating Election Commission

San Francisco Chronicle – Philip Rawls (Associated Press) | Published: 10/19/2013

Candidates have to report their contributions and expenditures to the Alabama secretary of state, but little is being done to make sure the reports are filed accurately. Some lawmakers said the solution could be to create a small state agency similar to the Federal Elections Commission.

California – FPPC Fines Arizona Group $1 Million for Campaign Finance Violations

Sacramento Bee – Laurel Rosenhall | Published: 10/24/2013

The California Fair Political Practices Commission levied a combined $1 million fine against Americans for Responsible Leadership and the Center to Protect Patient Rights for illegally funneling millions of dollars into a pair of ballot measure campaigns in 2012.

California – Riverside County Supervisors to Amend Campaign Finance Rules

Desert Sun; City News Service –   | Published: 10/22/2013

The Riverside County Board of Supervisors amended campaign finance regulations so candidates or PACs will, beginning January 1, 2014, have to electronically post details of a contribution within 10 days if the amount meets or exceeds $1,000. The revision affects candidates for assessor-clerk-recorder, auditor-controller, district attorney, judge, sheriff, supervisor, superintendent of schools, and treasurer-tax collector, as well as sponsors of ballot measures that are countywide in scope.

District of Columbia – Campaign Finance Reform Will Get D.C. Council Vote Next Month

Washington Post – Mike DeBonis | Published: 10/22/2013

The District of Columbia Council will vote on a package of campaign finance reforms as soon as November 5. The changes would restrict the ability of different companies owned by the same people to donate to the same candidate, require lobbyists to disclose their bundling of campaign contributions, and require political committees to report donations of $10,000 or more they believe to have been bundled, among other provisions.

Georgia – Commissioner: State auditor to handle ethics probe

Columbus Republic – Christina Cassidy (Associated Press) | Published: 10/22/2013

The Georgia Department of Audits and Accounts will investigate concerns surrounding the state ethics commission and its handling of complaints involving Gov. Nathan Deal. State Auditor Greg Griffin was initially appointed by the governor since the job became open outside of a legislative session. That connection to Deal drew criticism from Senate Minority Leader Steve Henson, who called the decision a “travesty of justice,” and said a special prosecutor would have been a better option.

Hawaii – Ethics Probe into Honolulu Mayor Sparks Talk of Reform

Honolulu Civil Beat – Nick Grube | Published: 10/18/2013

Ethical questions have been raised about a luau to celebrate the inauguration of Honolulu Mayor Kirk Caldwell, including whether it was a vehicle used by city contractors and lobbyists to curry favor with the new mayor. It has also opened up the debate over whether Honolulu’s ethics laws need to be strengthened to close any loopholes regarding gift-giving.

Michigan – Activists ‘Make it Rain’ in Michigan House, Drop Fake Million Dollar Bills on Lawmakers

MLive.com – Jonathan Oosting | Published: 10/23/2013

Anti-corruption protesters shouted from the Michigan House gallery as they showered state lawmakers with fake million dollar bills. The national group Represent Us says Michigan has one of the worst records of government corruption in the nation. It pulled a similar stunt in the New York Senate this June.

Montana – Montana Legislature Committee Hears Divide over Political Practices Job

The Missoulian – Charles Johnson | Published: 10/22/2013

The Legislature’s State Administration and Veterans’ Affairs Committee is studying Montana’s political practices office and looking at how other states regulate of campaign finances, ethics, and lobbyist and disclosure. Any recommendations will go to the 2015 Legislature for consideration. Those testifying before the committee offered divergent opinions about the role of the office and how it should be structured.

New York – Group Supporting Lhota Can Accept Unlimited Donations, Court Says

New York Times – Thomas Kaplan | Published: 10/24/2013

A three-judge panel of the U.S. Court of Appeals for the Second Circuit ruled a political committee created to support New York City mayoral candidate Joseph Lhota can accept contributions above the $150,000 annual limit for individuals set by state law. The judges said the state’s cap on donations to independent political groups was probably unconstitutional.

New York – New Bill Would Require Businesses Seeking State Contracts to Detail Donations to Governor

New York Daily News – Ken Lovett | Published: 10/22/2013

A bill introduced recently in the New York Legislature would require businesses seeking state agency contracts to make public a list of all campaign contributions made to the governor and others in the executive branch. Before any contract could be awarded, the companies would have to detail all donations from the business, its subsidiaries, key employees, and their spouses over the preceding 18 month period.

Texas – 5th Circ. Axes Texas Ban on Corporate PAC Donations

Law360.com – Jeremy Heallen | Published: 10/16/2013

The Fifth U.S. Circuit Court of Appeals ruled Texas cannot bar PACs from soliciting corporate donations, making it the fourth Circuit Court to uphold indirect corporate political contributions since the U.S. Supreme Court’s Citizens United ruling. Texans for Free Enterprise, a PAC that does not contribute directly to campaigns but solicits donations to run ads supporting or opposing candidates, had challenged the law.

Washington – Wash. AG Still Seeking Penalty against Food Industry Group That Didn’t Disclose Donors

Columbus Republic – Mike Baker (Associated Press) | Published: 10/22/2013

Washington Attorney General Bob Ferguson will move ahead with a lawsuit filed against the Grocery Manufacturers Association. Ferguson said he will still seek penalties from the group, which recently identified donors who contributed money to oppose a food labeling initiative. The attorney general said the case involved concealing a record-setting amount of donations and there must be sanctions for violating the law.

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:

Business Groups Stand by Boehner, Plot against Tea Party

Washington Post – Jia Lynn Yang and Tom Hamburger | Published: 10/17/2013

Rather than revisit their strategy of supporting Republicans after the stand-off that nearly drove the country to a debt default, influential organizations such as the U.S. Chamber of Commerce are standing behind U.S. House Speaker John Boehner. More importantly, Boehner’s friends in the business community are getting ready to take sides in a few GOP primary races against tea party candidates in Michigan, Idaho, and Alabama who could cause him more trouble.

Lobbyists’ Lobbying Group Wants a New Name – One That Doesn’t Mention Lobbying

Washington Post – Holly Yeager | Published: 10/15/2013

The board of directors for the American League of Lobbyists has made its choice for the organization’s new name: the Association of Government Relations Professionals. The group’s bylaws require two-thirds approval by its members before the name can be changed. There have been surveys and other research revealing a majority of members no longer identify themselves only as lobbyists.

From the States and Municipalities:

Arizona – Court Blocks New Arizona Campaign Finance Law; Opens Door for Candidates to Receive More Money

East Valley Tribune – Howard Fischer (Capitol Media Services) | Published: 10/15/2013

The Arizona Court of Appeals issued a preliminary injunction against the state’s higher campaign contribution limits. The order directs Secretary of State Ken Bennett not to enforce the law. The ruling makes it likely the state will turn to the Arizona Supreme Court to review the case.

Arizona – Ex-Phoenix Lobbyist Indicted over Contributions

San Francisco Chronicle; Associated Press –   | Published: 10/10/2013

Gary Husk, a once influential lobbyist in Phoenix whose key clients included the Fiesta Bowl, has been charged with eight felonies for using his firm’s money to reimburse staff after directing them to make specific campaign contributions. The donations went to high-profile politicians with whom Husk sought access and influence, including Arizona Gov. Jan Brewer.

California – Bob Filner, Former San Diego Mayor, Pleads Guilty to Criminal Charges

New York Times – Rob Davis and Adam Nagourney | Published: 10/15/2013

Former San Diego Mayor Bob Filner pleaded guilty to three criminal counts related to the sexual harassment allegations that drove him from office after a summer of scandal. Filner pleaded guilty to one criminal count of false imprisonment by violence, fraud, menace, and deceit, and two misdemeanor counts of battery. Sentencing was set for December 9, and documents indicate he will get three years of probation and no prison time.

Colorado – Colo. Pot Advocates File Unusual Campaign Finance Report

CBS News; Associated Press –   | Published: 10/17/2013

No Over Taxation, a group that had distributed free marijuana cigarettes at a rally opposing possible new taxes in Colorado, filed a disclosure report saying the joints were worth $1,250, and were paid for by a lawyer funding its campaign. Colorado Ethics Watch had filed a complaint alleging the marijuana was an in-kind campaign contribution and the anti-tax group had failed to initially report it.

Georgia – FBI Contacts Attorney in Ethics Case

Augusta Chronicle – Christina Cassidy (Associated Press) | Published: 10/10/2013

FBI agents have questioned Georgia ethics commission attorney Elisabeth Murray-Obertein, who raised concerns about the panel’s investigation into Gov. Nathan Deal. Murray-Obertein is a key figure in the allegations lodged in a pair of whistle-blower lawsuits accusing commission Executive Secretary Holly LaBerge of bragging about her relationship with Deal and saying he “owed her” after the agency dismissed the most serious campaign finance complaints raised in its investigation of the governor.

Hawaii – Circuit Hears Hawaii Campaign Finance Case

Courthouse News Service – Tim Hull | Published: 10/14/2013

A-1 A-Lectrician, Inc. sued the Hawaii Campaign Spending Commission in 2010, arguing the state’s non-candidate committee donation caps, advertising definition, disclaimer requirements, and ban on government contractors donating to candidates were all unconstitutional. The case is now before a panel of the Ninth U.S. Circuit Court of Appeals, which hinted it may delay a ruling until the U.S. Supreme Court decides a similar case.

Michigan – Bobby Ferguson Sentenced to Serve 21 Years in Federal Prison for Corruption

Detroit Free Press – Jim Schaefer, Tammy Staples Battaglia, and Eric Lawrence | Published: 10/11/2013

Bobby Ferguson, the friend and favorite construction contractor of former Detroit Mayor Kwame Kilpatrick, was sentenced to 21 years in federal prison. Ferguson was convicted of nine felonies, including racketeering and bribery.  He was accused of illegally securing $70 million in city contracts through his friendship with the ex-mayor, who was sentenced to 28 years in prison for his role in the extortion and racketeering scheme.

Montana – State of Montana Slaps Conservative ‘Dark Money’ Groups for Campaign Violations

The Missoulian – Mike Dennison | Published: 10/17/2013

Montana Commissioner of Political Practices Jonathan Motl said he found sufficient evidence to show Western Tradition Partnership violated state campaign finance law in a 2010 Republican House primary race. Motl found the “dark-money” group, now known as American Tradition Partnership, illegally coordinated campaign expenditures with candidate Dan Kennedy.

New York – Judge Rejects Bid by PAC to Raise Large Sums for Lhota

Wall Street Journal – Andrew Grossman | Published: 10/17/2013

U.S. District Court Judge Paul Crotty rejected a request by New York Progress and Protection PAC to overturn a state law that prohibits individuals from giving more than $150,000 each year to campaigns and political committees. Crotty said granting the injunction would be disruptive because it would come too close to the November 5 election.

Pennsylvania – Philly Ethics Board Proposal Allows $200 Limit on Gifts

Philadelphia Inquirer – Claudia Vargas | Published: 10/17/2013

The Philadelphia Board of Ethics has drafted a list of regulations that are supposed to better explain what is allowed under the current code for “gifts, loans, and favors to city personnel.” For example, the proposal would allow city officers and employees to accept gifts of up to $200 in value per year from any single source. A hearing on the proposed regulations is scheduled for November 20.

Virginia – Star Scientific Chief Thought McDonnell Was Helping Firm Get State Funding

Washington Post – Rosalind Helderman and Carol Leoning | Published: 10/11/2013

Star Scientific Chief Executive Officer Jonnie Williams Sr. has told federal investigators he believed Virginia Gov. Robert McDonnell was helping his company get funding from the state’s tobacco commission at the same time that Williams was giving money and gifts to the governor and his family. Under federal law, it can be illegal for elected officials to agree to take official actions in exchange for gifts or money, even if they do not ultimately follow through on their promises or have the power to do so.

Washington – Washington State Sues Lobbyists over Campaign against GMO Labeling

Reuters – Carey Gillam | Published: 10/16/2013

The state of Washington filed a lawsuit alleging the Grocery Manufacturers Association illegally collected and spent more than $7 million while shielding the identity of its donors in an effort to oppose Ballot Initiative 522, which would require labeling of genetically modified foods. The attorney general’s office is asking the court to order the group to immediately comply with state disclosure laws. It also said it would seek civil penalties.

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:

A Federal Budget Crisis Months in the Planning

New York Times – Sheryl Gay Stolberg and Mike McIntire | Published: 10/5/2013

A New York Times article detailed a plan among conservative activists to derail the Affordable Care Act. The outside groups believed the GOP could stop the health care overhaul if conservative lawmakers were willing to push fellow Republicans into cutting off financing for the entire federal government. The report said the billionaire Koch brothers, Charles and David, have been deeply involved with financing the overall effort.

Supreme Court Skeptical of Limits on Federal Campaign Contributions

Washington Post – Robert Barnes | Published: 10/8/2013

The U.S. Supreme Court seemed prepared to strike down a part of federal campaign finance law left intact by its decision in Citizens United in 2010: overall limits on direct contributions from individuals to candidates. The justices seemed to divide along familiar ideological lines, and they expressed different understandings of the role of money and free speech in American politics.

From the States and Municipalities:

Arizona – Portion of Campaign Finance Law Overturned

Arizona Republic – Edward Gately | Published: 10/4/2013

U.S. District Court Judge James Teilborg ruled the part of Arizona’s campaign finance law that defines political committees is unconstitutional. But the law will remain in effect pending an injunction or until lawmakers can address the problems. “We will likely file an injunction to basically put everything on hold until the Legislature can convene in January,” said Stephanie Grisham, a spokesperson for the state attorney general’s office.

California – Assemblyman Offers to Suit up Campaign Donors

Sacramento Bee – Laurel Rosenhall | Published: 10/8/2013

California Assemblyperson Henry Perea is raising campaign money by offering donors a custom suit in exchange for a $2,000 contribution. A number of lobbyists said the fundraiser puts participants in an ethical quandary, leaving them with a valuable gift, while some women said it is excluding them by only offering suits for men.

California – California Strategies Walks Line between Lobbying and Public Affairs

Sacramento Bee – Laurel Rosenhall | Published: 10/6/2013

California Strategies is not the only public affairs firm in Sacramento that offers clients a variety of services requiring a careful dance along the line that separates lobbying from less regulated forms of advocacy. But it has been a target of competitors who say the firm’s approach creates an uneven playing field – it has a long list of partners who have deep connections inside government but do not register as lobbyists.

Colorado – Complaint: Free weed
at rally not reported

Grand Junction Daily Sentinel – Charles Ashby | Published: 10/8/2013

No Over Taxation has given out free marijuana at rallies in Denver and Boulder to convince voters to oppose Proposition AA, a ballot measure that would impose taxes on recreational pot when it becomes available for sale in Colorado next year. Colorado Ethics Watch filed a complaint contending the donors that contributed the marijuana should have been identified in No Over Taxation’s campaign finance reports as providing in-kind donations, but were not.

Florida – Hays and Ring: Forget auditing lobbyists; repeal the law

Orlando Sentinel – Aaron Deslatte | Published: 10/7/2013

After media attention to lobbyists’ pay, Florida legislative leaders agreed to kick-start legally required audits of those paid to influence lawmakers and state officials. The Legislature’s joint auditing committee was told the random audits of some two-dozen firms could cost in excess of $1 million, sparking criticism from some on the panel.

Georgia – Ex-Ethics Commission Employee in Georgia Says Docs Altered

Chattanooga Times Free Press; Associated Press –   | Published: 10/9/2013

John Hair, a former Georgia ethics commission computer specialist, said he removed, changed, and condensed documents from the investigative file of complaints accusing Georgia Gov. Nathan Deal of misusing campaign funds in the 2010 election. Hair said he was fulfilling orders from commission Executive Secretary Holly LaBerge and her top aide, Lisa Dentler.

Massachusetts – Cardinal O’Malley Invites Lawmakers to a Get-Together

Boston Globe – Jim O’Sullivan and Lisa Wagsness | Published: 10/9/2013

Cardinal Sean O’Malley, the Roman Catholic archbishop of Boston, will meet with the Massachusetts lawmakers who represent cities and towns within the archdiocese in what one of his aides described as “relationship building.” The church does not command the presence on Beacon Hill that it did years ago, when it played a much more prominent role in society. Some lawmakers remain angry at what they viewed as overly aggressive lobbying techniques that church lobbyists and some priests used in opposing same-sex marriage

Michigan – Ex-Detroit Mayor Kwame Kilpatrick Sentenced to 28 Years in Prison for Corruption

Washington Post; Associated Press –   | Published: 10/10/2013

Former Detroit Mayor Kwame Kilpatrick was sentenced to 28 years in prison on his conviction for public corruption charges including bribery and extortion that prosecutors said exacerbated the city’s financial crisis. Kilpatrick spent lavishly at the helm of a conspiracy that damaged Detroit’s reputation and cost taxpayers millions of dollars, U.S. District Court Judge Nancy Edmunds said, adding that the sentence was intended to send a message that corruption would not be tolerated.

New York – Cuomo’s Office Is Said to Rein in Ethics Board He Created

New York Times – Jesse McKinley and Thomas Kaplan | Published: 10/8/2013

According to people familiar with the work of the Commission to Investigate Public Corruption, its effort is burdened by resistance from the New York Legislature, which has refused requests for information about lawmakers’ outside income, and by unexpected involvement by the governor’s office, which has leaned on the commission to limit the scope of its probes.

North Carolina – Plain-Clothes Officer Attended Moral Monday Planning Meetings

WRAL – Michael Biesecker (Associated Press) | Published: 10/8/2013

About 940 people were arrested at weekly “Moral Monday” rallies opposing Republican-backed policies at the North Carolina Legislature that protesters said damaged public education, voting rights, and working people. The Raleigh Police Department conducted undercover surveillance at meetings of the North Carolina chapter of the NACCP held to organize the mass protests.

South Carolina – State House for Sale: SC ethics law a muddled mess

The State – Adam Beam | Published: 10/5/2013

While South Carolina has strict rules on who can donate to political campaigns, and how much they can give, state law has little to say about how legislators can spend that money. And what it does say is in dispute. Critics say South Carolina needs to follow the lead of 26 other states and have one independent ethics commission set the rules for all candidates. But most lawmakers say that would violate the state constitution.

Texas – Red River Rivalry Fundraising a Growing Trend

Texas Tribune – David Maly | Published: 10/9/2013

The annual football game between the University of Texas and Oklahoma University is increasingly becoming a fundraising hotspot for lawmakers in both parties. Deborah Ingersoll, a lobbyist who has worked in Texas politics for more than 20 years, organizes an annual guide of legislative fundraising surrounding the game and said this is the biggest year she has seen.

Virginia – Reforming Va. Laws a Priority for Politicians

Richmond Times Dispatch – Olympia Meola and Jim Nolan | Published: 10/6/2013

Recognizing the public reaction to the scandal involving Gov. Robert McDonnell, both major party candidates to succeed him have proposed reforms to Virginia’s gift and disclosure laws. Majority Leader M. Kirkland Cox is leading a working group of House Republicans studying various reforms ahead of the legislative session. Cox said the changes could include more frequent reporting than the current annual filing, and synchronizing the reporting dates for elected officials and lobbyists.

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

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:

State Watchdogs Band Together to Take on ‘Dark Money’

Washington Post – Reid Wilson | Published: 10/3/2013

The States’ Unified Network Center, a project from watchdog groups to share information on campaign finance legislation across the country, will begin as a Web presence to highlight proposed bills and standing law. It will also organize a database of nonprofit groups that spend money in state elections, in hopes of stitching together the state-by-state patchwork of campaign finance databases.

Federal:

Government Shutdown: Wall Street angry at tea party it has no influence over

Politico – MJ Lee | Published: 10/2/2013

Wall Street’s frustration over the current fiscal impasse is shared by the larger business community, which has tried to convince lawmakers the threat of shutting down the government or failing to raise the borrowing limit should not be used as negotiating ploys. But wealthy financial services executives and their lobbyists have little leverage against tea party lawmakers, who do not care for big banks and do not rely heavily on the industry for campaign money.

Not ‘Essential’: Shutdown would hit FEC hard

Center for Public Integrity – Dave Leventhal | Published: 9/30/2013

The FEC, unlike some agencies filled with employees deemed essential, will effectively shutter under a government shutdown. All but the agency’s active commissioners, who are furlough-proof political appointees, would ultimately stay home.

From the States and Municipalities:

California – Ex-Lobbyist Joins Councilman’s Staff and Questions Follow

Los Angeles Times – Robert Zahniser | Published: 9/26/2013

Robert Katherman, a longtime Los Angeles lobbyist, said since joining city Councilperson Curren Price’s staff, he has avoided decisions affecting clients at the advocacy firm he founded and put his wife in charge of. As long as that continues, state conflict-of-interest laws permit Price to act on proposals that benefit Katherman’s wife and her firm.

Georgia – Ethics Commission to Ask for Special Investigator

San Francisco Chronicle – Christina Cassidy (Associated Press) | Published: 9/30/2013

The Georgia ethics commission voted to request that a special assistant attorney general be appointed for an independent investigation to look into the circumstances surrounding two lawsuits against the agency. Former commission Executive Secretary Stacey Kalberman and her onetime deputy, Sharon Streicker, allege they were forced out for pressing an investigation into Gov. Nathan Deal’s 2010 campaign.

Georgia – State Senator Balfour Indicted on Charges Related to Expenses

Athens Banner-Herald – Ray Henry (Associated Press) | Published: 9/27/2013

A grand jury charged state Sen. Don Balfour with illegally claiming legislative expense pay. The indictment comes after a Georgia Bureau of Investigation probe into expense vouchers from his work at the General Assembly, where Balfour sought reimbursement for mileage and per diem expenses at the Capitol when lobbyist disclosure reports show he was out of state.

Illinois – Appeals Court Denies Quinn Bid to Keep Pay Freeze

San Francisco Chronicle – Sarah Burnett (Associated Press) | Published: 9/27/2013

A judge overruled Illinois Gov. Pat Quinn, who had suspended the salaries of state legislators, and ordered the lawmakers to receive back pay with interest. Quinn suspended the paychecks this summer, saying lawmakers had failed to resolve a financial crisis worsened by the ballooning cost of state pension plans. Leaders of the Legislature challenged his authority to suspend the pay.

Iowa – Iowa Lawmaker Resigns over Bachmann Payments

USA Today – Jason Noble and Jennifer Jacobs (Des Moines Register) | Published: 10/2/2013

Iowa Sen. Kent Sorenson resigned after a special investigator found it likely he violated ethics rules by taking money from PACs connected to former presidential candidate Michele Bachmann and then denying he had done so. The report contains the most detailed findings yet in a scandal that has swirled around Sorensen since he defected from the Bachmann campaign days before the 2012 Iowa caucuses to support Ron Paul.

Michigan – Corruption Alleged after Detroit Pension Deal

Detroit Free Press – Robert Snell | Published: 9/30/2013

Former Detroit Mayor Kwame Kilpatrick backed an investment deal that bankrolled a three-year spree of alleged corruption and helped push the city into bankruptcy. The deal cheated city retirees out of more than $84 million, led to criminal charges against six people, and compounded the impact of the money-losing Wall Street scheme, which could eventually cost Detroit more than $2.7 billion.

Minnesota – Emmer’s Internet Ad Could Prove Troublesome

Minneapolis Star Tribune – Jim Ragsdale and Jennifer Brooks | Published: 9/30/2013

A television ad featuring congressional candidate Tom Emmer vouching for a construction company may violate a federal law banning corporate contributions to candidates. Emmer appeared in an ad for Integrity Exteriors & Remodelers while noting his candidacy and standing by a banner spelling out his congressional ambitions. A YouTube posting for the ad said it had aired on a Twin Cities television station.

Mississippi – Hood Could Appeal Judge’s Ruling That Part of Miss. Campaign Finance Law Is Unconstitutional

Columbus Republic – Emily Wagster Pettus (Associated Press) | Published: 10/1/2013

U.S. District Court Judge Sharion Aycock ruled that part of Mississippi’s campaign finance law creates an unconstitutional burden for individuals or organizations that spend at least $200 to support or oppose a ballot initiative. State Attorney Jim Hood an appeal could be difficult because federal courts have not been amenable to states’ defense of their own campaign finance laws.

New York – Elections Officials Narrow Scope of Collection Effort

Albany Times Union – Casey Seiler | Published: 9/26/2013

The New York State Board of Elections had planned to send letters in September to numerous campaign treasurers with judgments against them and the banks that held their funds, informing them the committees’ assets were frozen until their fines had been settled. But only two such letters have been sent.

North Carolina – Voter ID Targeted in North Carolina

Wall Street Journal – Devlin Barrett | Published: 9/30/2013

The U.S. Justice Department filed a lawsuit challenging voting restrictions adopted by North Carolina, alleging they discriminate against minority voters. The suit challenges the state’s voter-identification requirement and limits on early voting. It also asks the court to require federal pre-approval for voting-law changes in the state.

West Virginia – Fishing Trip Underscores Close Ties between Suder, United Sportsmen

Milwaukee Journal Sentinel – Patrick Marley and Jason Stein | Published: 9/30/2013

Records show then-Wisconsin Assembly Majority Leader Scott Suder accepted an invitation for a fishing trip offered by the lobbyist for a self-described sportsmen group just days before an affiliate of the organization won a $500,000 state grant. Gov. Scott Walker rescinded the grant after reports the group misrepresented its nonprofit status and its president had been cited for shooting a black bear without the proper license.

West Virginia – W.Va. Judge Resigns, Pleads Guilty to Conspiracy

San Francisco Chronicle – John Raby (Associated Press) | Published: 10/2/2013

A West Virginia judge pleaded guilty to participating in a scheme to conceal alleged illegal drug use and election-law violations by a sheriff who was murdered earlier this year. As part of his plea agreement, prosecutors agreed to drop an earlier charge that Mingo County Circuit Court Judge Thornsbury misused his office on several occasions over five years to try to illegally imprison the husband of his former secretary after she ended an affair with him.

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:

Manufacturing Arm to Advise on Lobbying Agencies, States

Politico – Byron Tau and Andrea Drusch | Published: 9/26/2013

The National Association of Manufacturers has established the Center for Legal Action to give its members a voice in legal debates at the federal, state, and local levels. The center is a response to gridlock in Washington, D.C. and reflects the fact that legal fights elsewhere play a major role in the development of rules and regulations.

Some Public Companies Are Divulging More Details about Their Political Contributions

Washington Post – Dina ElBoghdady | Published: 9/25/2013

Even as some groups fight efforts to make their donors public, a growing number of companies are coming forward on their own to disclose their contributions to trade associations and other nonprofit organizations that legally can keep their hidden, according to a study.

Federal:

Federal Election Commission Gets New Blood

The Center for Public Integrity – Dave Levinthal | Published: 9/23/2013

The U.S. Senate confirmed President Barack Obama’s two nominees to the FEC, giving the panel its first new members since the George W. Bush administration. Democrat Ann Ravel and Republican Lee Goodman were approved by unanimous consent in a brief voice vote. The appointments will restore the six-member commission to full strength.

From the States and Municipalities:

Arizona – Campaign Finance Law Throws Twist at Candidates

San Francisco Chronicle; Associated Press –   | Published: 9/23/2013

The Arizona secretary of state’s office said under a new law, candidates need to have separate campaign finance committees for the primary and general elections. Combined with a $2,000 limit on transfers between committees, the requirement means candidates may have to commit their funds to one election or the other without yet knowing what the political landscape will look like.

California – California Political Watchdog Sets Sights on Major Cases

Sacramento Bee – Christopher Cadelago | Published: 9/22/2013

The California Fair Political Practices Commission historically has pursued investigations based on formal complaints. But under the leadership of Chairperson Ann Ravel and her chief enforcer, Gary Winuk, the agency has become more proactive, significantly increasing the number of inquiries it initiates.

California – State’s New Rule: Campaigns must say when they pay for Web posts

Los Angeles Times – Patrick McGreevy | Published: 9/19/2013

Bloggers and others who are paid to post political messages online are subject to new disclosure rules under regulations approved by the California Fair Political Practices Commission. The agency acted out of concern the public might be deceived into thinking paid content on blogs that praises or criticizes a candidate is objective political commentary.

Florida – Lobbying Association Weighs into Gaetz Push to Start Auditing Their Pay

Orlando Sentinel – Aaron Deslatte | Published: 9/19/2013

As a legislative panel prepares to discuss auditing lobbyists’ compensation, the association that represents Florida’s lobbyists wants to make sure they have a say in the process. A letter signed by the Florida Professional Lobbyist Association’s board of directors asks to make recommendations to lawmakers on how to conduct the audits.

Georgia – Ethics Commission Head Received Pay Increases

Macon Telegraph; Associated Press –   | Published: 9/20/2013

The annual salary of the Georgia ethics commission’s executive secretary, Holly LaBerge, increased from $85,000 when she was hired in September 2011 to $100,000 by June 2013, despite the agency saying it had to cut costs. By comparison, LaBerge’s predecessor, Stacey Kalberman, quit after absorbing a 30 percent pay cut and later filed a lawsuit alleging she was punished for aggressively pursuing an investigation involving Gov. Nathan Deal.

New York – N.Y. Ethics Panel Toughens Rules to Shield Political Donors

The Journal News – Joseph Spector | Published: 9/24/2013

The New York Joint Commission on Public Ethics fine-tuned its process for granting exemptions from disclosing financing sources for nonprofit organizations and agreed to place exemption applications online for public view. The changes come as the commission says it is trying to balance public disclosure of groups’ major contributors with the need to protect donors’ privacy to keep them from harm.

Ohio – Federal Grand Jury Indictment Charges North Canton Businessman with Funneling Illegal Campaign Cash to Candidates

Cleveland Plain Dealer – James McCarty | Published: 9/25/2013

A federal grand jury returned an indictment charging Benjamin Suarez, the owner of a North Canton direct-marketing firm, and company Chief Financial Officer Michael Giorgio with conspiring to funnel illegal campaign contributions to U.S. Rep. Jim Renacci and Ohio Treasurer Josh Mandel. According to the FBI, Suarez and Giorgio recruited company employees and spouses to contribute to the campaigns, and then reimbursed them through payments disguised first as salary and later as profit sharing.

Ohio – Group Calls for Tougher Lobbyist Disclosures

Columbus Dispatch – Jim Siegel and Robert Higgs (Northeast Ohio Media Group) | Published: 9/19/2013

As Ohio’s natural gas industry has boomed, so have campaign contributions from the industry. That spending, coupled with a lack of reporting requirements for compensation paid to lobbyists should raise questions with voters about transparency and just who has access to government, said Ohio Common Cause.

Virginia – Ethics Issue Rises to Prominence in Va. Legislative Races

Washington Post – Antonio Olivo | Published: 9/21/2013

In a state that has long considered itself a place of clean government, the shadow of a federal probe into gifts received by Virginia Gov. Robert McDonnell and his family is hanging over dozens of state House of Delegate races. As the campaigns for the general elections ramp up, both major parties are seeking to leverage the ethics issue for political gain, or at least keep it from hampering their chances for victory.

Washington – New Lobbyist Meal Form to Distinguish Chowder from Steak

KUOW – Austin Jenkins | Published: 9/23/2013

The Washington Public Disclosure Commission will decide at its September 26 meeting whether to update the form lobbyists use to report spending on entertainment. Media reports have noted many lobbyists do not include a per-person amount for dinners with lawmakers.

Wisconsin – Madison Passes Ordinance Forcing Stricter Campaign Spending Disclosure

Capital Times – Jack Craver | Published: 9/23/2013

The Madison Common Council approved an ordinance that will require groups making independent campaign expenditures in city elections to disclose the spending and their donors. Although the Government Accountability Board put in place a rule in 2010 that addresses such ads, the agency has not enforced the rule since it was challenged.

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:

Tax Filings Hint at Extent of Koch Brothers’ Reach

New York Times – Nicholas Confessore | Published: 9/12/2013

Freedom Partners, a nonprofit with ties to Charles and David Koch, provided grants of $236 million to conservative organizations before the 2012 election. The group reflects a shift in the tax strategies the Koch operation deploys to avoid challenge from the IRS which limits how much nonprofit groups can spend to aid or defeat candidates.

Federal:

Former FEC Chairman Donald McGahn Resigns from Panel

Washington Post – Reid Wilson | Published: 9/17/2013

Donald McGahn reigned from the FEC to return to private law practice at Patton Boggs. McGahn, a Republican, clashed frequently with Democrats as he helped push a conservative interpretation of campaign finance laws and persistent skepticism about government oversight of campaigns. His term expired in 2009, but it was not until this year that a replacement was nominated amid a state of gridlock at the agency.

Red Cape Drawing Bids during Jackson Jr. Auction

BusinessWeek – Michael Tarm (Associated Press) | Published: 9/18/2013

Memorabilia once owned by former U.S. Rep. Jesse Jackson, Jr. (D-Ill.) is being auctioned off by the U.S. Marshals after his guilty plea in a corruption case. A dozen items including autographed Bruce Lee and Michael Jackson collectibles and furs formerly belonging to Jackson went up for auction, with the bidding ending September 26. Whatever money is generated will be subtracted from the $750,000 he owes the government.

From the States and Municipalities:

Arizona – Commission Challenges Campaign Spending Hikes

Arizona Daily Sun – Howard Fischer (Capitol News Services) | Published: 9/19/2013

The Arizona Citizens Clean Election Commission believes Maricopa County Superior Court Judge Mark Brain erred in concluding state lawmakers are free to reset campaign contribution limits. The commission asked the Court of Appeals to overturn Brain’s ruling that allowed the higher caps to take effect on September 13. The appellate judges agreed to consider the request on October 9.

California – Campaign Finance Bills Fare Poorly in California Legislature

Los Angeles Times – Chris Megerian and Melanie Mason | Published: 9/17/2013

Bills that would have increased the power of the Fair Political Practices Commission, increased fines for violations, and forced greater disclosure of donors, among other measures, all stalled in the California Legislature. It remains to be seen whether new campaign finance rules could be put in place before next year’s June primary or even the November general election.

Florida – After Questions, Gov. Rick Scott Cancels $25,000 Alligator Hunt Fundraiser

Tampa Bay Times – Steve Bousquet | Published: 9/11/2013

Gov. Rick Scott has called off an alligator hunting trip to raise funds for his 2014 re-election campaign. Golfing weekends, concerts, and deep-sea fishing fundraisers are common in Florida politics, but a gator hunt was such an anomaly that it made major news among bloggers and political Web sites.

Georgia – Clock Running Out on Free Football Tickets for Politicians

Marietta Daily Journal – Ray Henry (Associated Press) | Published: 9/15/2013

A new law taking effect on January 1 bans lobbyists from giving Georgia officials free college football tickets. Disclosure reports show lobbyists have given politicians almost $1,400 in football tickets and related entertainment since the start of the season in late August. Last year, registered lobbyists shelled out more than $14,000 in tickets and perks at the games.

Indiana – Indiana Utility Regulators, under Pressure, Say They Won’t Take Industry Money to Fund Conference

Indianapolis Star – John Russell | Published: 9/12/2013

The Indiana Utility Regulatory Commission dropped a plan to seek money from utility trade groups to help pay for a conference of energy regulators from 14 states despite gaining clearance from the state Ethics Commission. Leaders of consumer and environmental groups had objected to the fundraising, saying it presented conflicts-of-interest for the state panel that approves electricity and natural gas rates to ask the utility industry for money.

Missouri – Rep. Penny Hubbard Provided Key Vote for Two Overrides; Son Got Lobbying Jobs

St. Louis Post-Dispatch – Virginia Young | Published: 9/13/2013

Missouri Rep. Penny Hubbard provided key votes to help override vetoes of bills on which her son had recently been hired as a lobbyist. In one instance, Hubbard had initially voted against a bill limiting lawsuits against the Doe Run Co. But she joined the Republican majority in overriding Gov. Jay Nixon’s veto. One day earlier, her son had gotten a lobbying job with Doe Run.

Montana – Federal Judge Says Montana’s Campaign Disclosure Requirement Is Constitutional

Washington Post – Matt Goras (Associated Press) | Published: 9/17/2013

U.S. District Court Judge Dana Christensen ruled Montana’s requirement that political committees disclose their campaign spending is constitutional. Christensen wrote the public’s right to know who is financing campaigns outweighs the minimal burden imposed on committees required to report the information.

Pennsylvania – Pa. Capitol Portraits Display Plenty of Conviction

Pittsburgh Post-Gazette – Kate Giammarise | Published: 9/16/2013

The portraits of past House and Senate leaders lining the Capitol’s hallways include several former Pennsylvania legislators now in prison on a variety of corruption-related charges. Despite the resemblance to a rogues’ gallery in some places, the paintings likely are not going anywhere.

Texas – DeLay Conviction Overturned

Houston Chronicle – Mike Snyder and Patricia Kilday Hart | Published: 9/19/2013

An appeals court threw out the criminal conviction of former U.S. House Majority Leader Tom DeLay, saying there was insufficient evidence for a jury in 2010 to have found him guilty of money laundering and conspiracy for helping illegally funnel corporate money to Texas candidates in 2002. Delay was sentenced to three years in prison, but his sentence was on hold while his case made its way through the appellate process.

Virginia – Former Chef Pleads No Contest to Stealing Food from Va. Governor’s Mansion

Washington Post – Rosalind Helderman and Laura Vozzella | Published: 9/19/2013

Todd Schneider, the former chef at the Virginia governor’s mansion, pleaded no contest to reduced charges that he stole food from the first family’s kitchen and was ordered to repay the state $2,300, resolving the dispute that sparked a political and legal crisis for Gov. Robert McDonnell, and entangled state Attorney General Ken Cuccinelli, the Republican candidate for governor.

Washington – Public Disclosure Commission Hacked

Tacoma News Tribune – Rachel LaCorte (Associated Press) | Published: 9/18/2013

The Washington Public Disclosure Commission’s (PDC) network was breached earlier in September, though officials said no information was compromised. Michael Smith, the PDC’s chief technology officer, said passwords have been changed and the agency has been scanning its sites looking for potential points of vulnerability.

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:

Firm Asks for Disclaimer Exemption for Mobile Political Advertising

Huffington Post – Paul Blumenthal | Published: 9/11/2013

A digital media firm is asking the FEC to exempt mobile ads from the traditional disclosure statements that apply to political ads. Revolution Messaging said most ads produced for the mobile platforms do not have enough pixels to reasonably include more than a dozen words required to identify who paid for the spot. The firm said disclosures would take up more than 40 percent of the available space for a mobile advertisement.

From the States and Municipalities:

Arizona – Opponents Go to Court to Stop Higher Campaign Limits

Arizona Daily Sun – Howard Fischer (Capitol News Services) | Published: 9/11/2013

A judge is considering whether to block a new Arizona law increasing limits on campaign contributions. The Citizens Clean Elections Commission contends the statute violates constitutional restrictions on changing voter-approved laws. Under the law, which takes effect on September 13, the cap on some donations would rise to $4,000.

California – Hansen Agrees to $50,000 Fine, Says He Doesn’t Want His Signatures Used in Anti-Arena Effort

Sacramento Bee – Ryan Lillis | Published: 9/9/2013

Hedge-fund manager Chris Hansen and two political consultants have agreed to pay a $50,000 fine for failing to disclose a campaign contribution to a group seeking to block a new Sacramento sports arena. Hansen was accused of making an anonymous $100,000 donation in June to a signature-gathering effort to require a citywide vote on public subsidies for sports facilities.

California – Three Fined for Covert Lobbying in California

Sacramento Bee – Laurel Rosenhall | Published: 9/9/2013

Three partners in a public affairs firm will pay fines for trying to influence state government decisions without registering as lobbyists. The Fair Political Practices Commission accused the employees of California Strategies of crossing “the line which separates policy consultants from lobbyists.” The settlement with Jason Kinney, Rusty Areias, and Winston Hickox requires all three to register as lobbyists and, along with their firm, pay a combined fine of $40,500.

District of Columbia – D.C. Executive Linked to Secret 2008 aid to Hillary Clinton

Washington Post – Ann Marimow and Philip Rucker | Published: 9/12/2013

Federal prosecutors say marketing executive Troy White received $600,000 in illicit funds to do unsolicited campaign work for Hillary Clinton in the 2008 presidential election. White pleaded guilty for failing to file tax returns reflecting the amount his company was paid. Court documents outlined an elaborate scheme and said White worked with District of Columbia businessperson Jeffrey Thompson to help Clinton during several primaries.

Florida – Execution Rescheduled to Accommodate Pam Bondi Fundraiser

Tampa Bay Times – Adam Smith | Published: 9/9/2013

Florida Attorney General Pam Bondi persuaded Gov. Rick Scott to postpone an execution because it conflicted with her campaign fundraising reception. Shortly before a scheduled execution, the state attorney general typically phones the governor to inform him or her there is no legal basis for delay. After Scott had rescheduled the execution for September 10, the date of Bondi’s “hometown campaign kickoff,” her office asked that it be postponed; the new date is October 1.

Florida – Senate Prez Wants to Start Auditing Lobbying Reports

Orlando Sentinel – Aaron Deslatte | Published: 9/9/2013

Florida Senate President Don Gaetz wants the Legislature to make good on a never-enforced requirement that lobbying firms be subjected to random audits. He said he had asked the Senate’s general counsel to work with the House to determine how to kick-start the audits. Gaetz said the main holdup may be whether the Legislature has budget authority to begin the audits, or whether it would have to wait until the next fiscal year to launch them.

Indiana – Should Indiana Regulators Raise Money from Utility Trade Groups to Pay for Conference?

Indianapolis Star – John Russell | Published: 9/11/2013

The state ethics agency approved a request from the Indiana Utility Regulatory Commission to solicit donations from utility trade groups to fund a conference of regulators from 14 states to be held in Indianapolis. Watchdogs say such a move could give utility groups a chance to curry favor with regulators, who make decisions on whether companies can raise rates or build new plants.

Missouri – Missouri House Speaker’s Side Business Raises Ethical Issues

Kansas City Star – Jason Hancock | Published: 9/6/2013

In addition to his job as a legislator and his position with a law firm, state House Speaker Tim Jones also earns money from the Missouri Freedom Alliance. Jones has offered conflicting explanations of what type of work the group does. First, he said it was legal consulting on basic legislative process. Jones later said it had nothing to do with legislative issues and instead focused on private legal matters.

New Jersey – Christie Vetoes Bill to Move General Election to October

Newark Star Ledger – Matt Friedman | Published: 9/9/2013

New Jersey Gov. Chris Christie vetoed a bill that would have moved the November 5 general election to the date of the special U.S. Senate election on October 16. Christie also vetoed a bill that would let voters who go to the polls in October to also vote early for the November election, when the governor and all 120 seats in the Legislature are being contested.

New Mexico – Donald Duck, New Mexico Lobbyist

New Mexico Watchdog – Rob Nikolewski | Published: 9/12/2013

New Mexico Watchdog found “Donald Duck” on the list of registered lobbyist in the state. According disclosure reports, Donald spent $200 on dinner for “Senator Mickey Mouse” at The Bull Ring, a popular restaurant in Santa Fe.

New York – Forgive? No, a Night to Forget for Scandal-Tarred Candidates

New York Times – Michael Grynbaum | Published: 9/11/2013

Election Day was sobering for a peculiar brand of politician that emerged in the New York City election season: the scandal-tarred scoundrel seeking a second chance. The results reflected the mood of an electorate whose tolerance for the well-trod path of political repentance may have reached its limits.

Pennsylvania – Pa. Lawmakers Eye Bills to Thwart Corruption

PhillyBurbs.com – Natasha Lindstrom | Published: 9/9/2013

More than three dozen public officials in Pennsylvania have faced corruption charges since 2007. The House State Government Committee held a recent hearing to take testimony on ways the ethics law can be strengthened in hopes of restoring public confidence in state government.

Tennessee – TN Ethics Commission Opts Not to Fine Tom Ingram

The Tennessean – Chas Sisk | Published: 9/12/2013

The Tennessee Ethics Commission voted to dismiss a complaint filed against Gov. Bill Haslam that said he failed to disclose how much he paid Tom Ingram, his former chief campaign strategist, for political advice. The commission also declined to fine Ingram on for failing to disclose a lobbying relationship with a company hoping to win permission to mine on public land.

Washington – Ethics Rules Limit Freebies

Spokane Spokesman-Review – Jim Camden | Published: 9/6/2013

With college football season just starting up, Washington’s Legislative Ethics Board clarified that state lawmakers are not permitted to accept free tickets for themselves and family members. But it is all right for a legislator to attend a game as the guest of the university president and sit in the president’s box.

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:

Battle over Dark Money Takes Many Forms on State Level

Sunlight Foundation – Peter Olsen-Phillips | Published: 9/5/2013

A Sunlight Foundation survey found dozens of laws that passed or are pending in state Legislatures addressing the U.S. Supreme Court’s Citizen United ruling. The foundation said while few bills have made it into law so far, the legislation that has been introduced suggests widespread interest in improving transparency at the state level.

Federal:

Feds Could Allow Bitcoin Campaign Donations

Politico – Byron Tau | Published: 9/4/2013

The FEC may determine rules governing donations made in Bitcoins and how they apply to campaigns. Lawyers for Conservative Action Fund PAC asked the agency decide if candidates and outside groups are allowed to accept the digital currency, in addition to U.S. dollars. Bitcoin, which allows for anonymous, encrypted digital transactions, has come under fire from regulators who worry about the lack of oversight and the currency’s potential use in crime.

From the States and Municipalities:

Alaska – Alaska Town Roots for Feline Mayor Attacked by Dog

Houston Chronicle – Rachel D’Oro (Associated Press) | Published: 9/5/2013

The honorary mayor of Talkeetna, Alaska is in bad shape after being attacked by a dog. Stubbs the cat made it to the mayor’s office through a write-in campaign. He has held the honorary position for more than 15 years. His election earned him enough press to catapult the town at the base of Mount McKinley into a tourist destination.

California – California Republicans Thrive at the Local Level

Los Angeles Times – Mark Barabak | Published: 9/3/2013

Over the last two decades, California has become a Democratic fortress, beyond the GOP’s reach in presidential campaigns and all but hopeless in statewide contests. At the local level, the picture is quite different. Despite the Democrats’ sizable statewide registration advantage, Republicans hold close to half the 2,500 mayoral and city council seats in California.

California – New Rules Give Daily Updates on Money in Mayor’s Race

San Diego Union Tribune – Craig Gustafson | Published: 9/4/2013

New rules in San Diego require any campaign contribution of $1,000 or more be disclosed within 24 hours during the 90-day period before an election. That is an expansion from the earlier state law that mandated such disclosures in the final 16 days of a race. The change will be in effect for the November 19 special election for mayor.

Colorado – In Colorado Recall Law, Victory for Incumbents Means Cash Refunds

Denver Post – Kurtis Lee | Published: 9/3/2013

If Senate President John Morse and Sen. Angela Giron win their recall elections, Colorado law provides that incumbents can collect up to 10 cents per vote. Morse and Giron, who face recalls for their support of gun laws passed this year by the Legislature, would have 60-days after the date of the recall election to file a request with the state.

Florida – Top Florida Senate Aide Gets $400,000 as Moonlighting Political Consultant

Tampa Bay Times – Mary Ellen Klas | Published: 8/31/2013

For three years, Chris Clark took a leave of absence from his job as a legislative staff member when the session ended and went to work as Florida Senate President Don Gaetz’s campaign manager, and earned more than $400,000. The lucrative arrangement underscores the financial ties special interests have with the Legislature as staff often cycle in and out of government and the private sector, developing relationships with the lobbyists who have a financial stake in influencing them.

Kentucky – Ex-Hoops Star Reaches Plea Deal, Could Get 2 Years

Kansas City Star – Roger Alford (Associated Press) | Published: 9/5/2013

Former Kentucky Agriculture Commissioner Richie Farmer entered into agreements with federal and state prosecutors, as well as the Executive Branch Ethics Commission, that would resolve all charges against him. He will plead guilty to two counts and receive a sentence in the range of 21 to 27 months. Farmer had faced a five-count federal indictment for misusing state resources. He also faced a 42-count charge brought by the commission.

Massachusetts – Former Mass. LG Fined for Campaign Violations

Boston Globe – Bob Salsberg (Associated Press) | Published: 8/29/2013

Timothy Murray agreed to pay $80,000 to settle charges he collected illegal campaign contributions raised by two public officials, capping a controversy that derailed the former Massachusetts lieutenant governor’s political career. Murray collected tens of thousands of dollars in donations solicited by former Chelsea Housing Authority Executive Director Michael McLaughlin, who was indicted for several campaign finance violations, including unlawful solicitation by a public employee.

New Jersey – Birdsall Services Group Ordered to Pay $1 Million after Pleading Guilty to Making Illegal Campaign Contributions

Bergen Record – Abbott Koloff | Published: 8/31/2013

Birdsall Services Group was ordered to $1 million in criminal penalties for making illegal campaign contributions that violated New Jersey’s “pay-to-play” law. The engineering firm is prohibited from working on government contracts in New Jersey for 10 years. Birdsall ceased operating after it declared bankruptcy earlier this year and sold its assets to a California company.

New Mexico – Judge Strikes Down City Ban on Corporate Gifts

Albuquerque Journal – Dan McKay | Published: 9/5/2013

U.S. District Court Judge M. Christine Armijo ruled Albuquerque’s ban on corporate campaign contributions is unconstitutional. Armijo did not explicitly address a companion prohibition that covers donations from city contractors. Her earlier decisions, however, restricted the scope of that ban.

Oklahoma – Oklahoma Ethics Commission Seeks Clearer Rules

Enid News & Eagle – Dale Denwalt | Published: 8/30/2013

Oklahoma Ethics Commission Director Lee Slater said a rewrite of the rules governing lobbying and campaign finance is on schedule. Slater said the first set of draft rules, dealing primarily with administrative matters, will be posted soon. Additional draft guidelines will be posted around the first of October and the first of November. The commission expects to vote on a final draft in January. Those rules will become effective 90 days after adoption unless they are rejected by the Legislature.

South Carolina – Leadership Positions Pay Off in Legislature

The State – Jamie Self | Published: 9/1/2013

Climbing the leadership ladder in the South Carolina General Assembly pays fundraising dividends for powerful lawmakers, according to campaign finance reports. A review by The State found contributions increased substantially for six members elevated to powerful leadership roles in the committees that oversee state spending and laws, and the Legislature’s political caucuses.

Texas – Eluding Big Ethics Fines

San Antonio Express-News – David Saleh Rauf | Published: 9/1/2013

The Texas Ethics Commission, when challenged in court, rarely walks away with the fine it originally levied. Experts point to the appeals process, which the commission and some lawmakers argue undermines the agency’s enforcement muscle. Since 1992, the commission has been challenged four times in court and forced to settle for reduced penalties in three cases.

Virginia – Study Highlights Check-Splitting in Va. Gift Reporting

Washington Post – Laura Vozzella | Published: 8/28/2013

Lobbyists who entertain state officials in Virginia often report each meal as a gift provided by multiple clients. Spreading entertainment costs across multiple clients also understates the value of gifts provided to legislators, who base their disclosure reports on gift summaries that lobbyists provide at the end of the year. Although the practice is not necessarily intended to dodge reporting requirements, it is drawing more scrutiny.

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:

Private Lobbyists Get Public Pensions in 20 States

Politico; Associated Press –   | Published: 8/26/2013

Lobbyists in at least 20 states receive public pensions because they represent associations of counties, cities, and school boards. Legislatures granted them access decades ago on the premise that they serve governments and the public. But several states have started to question whether these organizations should qualify for such benefits, since they are private entities in most respects.

From the States and Municipalities:

California – San Diego Mayor Bob Filner Resigns, Faces Criminal Investigation

Los Angeles Times – Tony Perry and Richard Marosi | Published: 8/23/2013

San Diego Mayor Bob Filner resigned under a barrage of sexual harassment complaints, offering an apology to his accusers while still denying the allegations. In exchange for his resignation, the city will pay most of Filner’s legal fees. It will also cover any punitive damages against him in any lawsuit. A spokesperson for the state attorney general’s office confirmed a criminal investigation into Filner’s treatment of women is underway.

California – State Panel Changes Disclosure Rules for Public Officials’ Travel

Los Angeles Times – Patrick McGreevy | Published: 8/22/2013

The California Fair Political Practices Commission (FPPC) revised gift rules involving travel by elected officials. “[The FPPC] can only require disclosure or impose restrictions if there is a personal benefit to the individual,” said agency Chairperson Ann Ravel.

Connecticut – Former Donovan Aide Gets 38 Months in Campaign Scandal

Hartford Courant – Dave Altimari | Published: 8/27/2013

Robert Braddock, the ex-campaign finance director to former Connecticut House Speaker Chris Donovan’s unsuccessful congressional campaign, was sentenced to more than three years in prison. Braddock and seven other co-defendants who pleaded guilty were involved in a scheme that funneled nearly $28,000 to Donovan’s campaign through straw donors in an effort to get Donovan to defeat proposed legislation to raise taxes on roll-your-own cigarette shops.

Florida – Lobbyist Fee Reports Are Just another Type of Competition

Orlando Sentinel – Aaron Deslatte | Published: 8/23/2013

The large paydays reported by some Florida lobbying firms are causing many to cry foul on the state’s disclosure law. The behind-the-scenes criticism is focused on the law’s requirements mandating only that lobbyist detail what they are paid to ply their trade in $10,000 ranges. The reports have never been subjected to audits. Many complain other lobbyists engage in financial gamesmanship in order to boost their status or draw new clients.

Florida – Texas-Sized B-Day Party for Scott Aide Hosted by Lobbyist and Wife

Tampa Bay Times – Michael Van Sickler | Published: 8/27/2013

Florida Gov. Rick Scott’s chief of staff, Adam Hollingsworth attended a birthday party for another top gubernatorial staffer at the home of Daniel and Monica Russell. Daniel Russell is a registered lobbyist for Northrop Grumman, which has been in talks with the state about tax incentives for the company. The office handling those negotiations is the Department of Economic Opportunity, where Monica Russell is the spokesperson.

Illinois – DuPage County Board Loosens Cap on Campaign Contributions

Chicago Daily Herald – Robert Sanchez | Published: 8/28/2013

In an attempt to align itself with Illinois’ campaign finance law, the DuPage County Board voted to raise the county donation limit from $1,000 to the state standard of $5,300. The cap had applied to companies and consulting firms, as well as officers and owners of those entities, as well as to any individual appointed or applying for a position on a board, commission, authority, task force, or advisory committee.

Missouri – Klahr Chosen as Director of Mo. Ethics Commission

Miami Herald; Associated Press –   | Published: 8/27/2013

The Missouri Ethics Commission chose James Klahr to be the agency’s executive director beginning on September 13. He was a staff attorney for the state Senate and for Gov. Jay Nixon. Klahr replaces Julie Allen, who stepped down to become the elections director for the secretary of state’s office.

Missouri – Mo. Rep. LaFaver Arrested for Possessing Pot, Quits Democratic Campaign Role but Not House

Columbus Republic – David Lieb (Associated Press) | Published: 8/26/2013

A Missouri lawmaker who was arrested for possession of marijuana during a traffic stop said he would not resign. State Rep. Jeremy LaFaver has, however, stepped down as chairperson of the Democratic Party’s 2014 campaign committee. During this past legislative session, LaFaver sponsored a bill that would have reduced the penalties for marijuana possession; it did not pass.

Nevada – Emails Show How Political Advisers Trumped Staff in Winning Support for ‘More Cops’ Tax

Las Vegas Sun – Anjeanette Damon | Published: 8/27/2013

Before the 2013 legislative session began, Nevada Gov Brian Sandoval followed the advice of outside political advisors and decided to support a tax increase. An email exchange about the move offers a look into who holds sway at the governor’s office, including the role of the two lobbyists.

New York – Millions Sweeten the Casino Pot

Albany Times Union – James Odato | Published: 8/27/2013

The Seneca Indian Nation agreed to give David Flaum a $3 million “development fee” if a casino opens in Monroe County, and a contingency fee of up to $5 million if the tribe gets a state gaming compact by October 1. Lobbyists are banned from receiving contingency fees in New York. Flaum would have to register as a lobbyist if he begins appearing before government officials on behalf of the tribe, particularly for a gaming compact, and contract terms suggest the tribe might direct him to do so.

Ohio – Gov. John Kasich and Ohio Ethics Commission Linked by Political Contributions, Records Show

Cleveland Plain Dealer – Henry Gomez | Published: 8/23/2013

A Cleveland Plain Dealer analysis shows three of the five members of the Ohio Ethics Commission or their spouses have contributed to Gov. John Kasich’s campaigns over the years. Democrats see new relevance in these ties as they call for an ethics investigation of Kasich. The commission rejected a request to explore the governor’s involvement with Worthington Industries, a company that received state tax credits.

Ohio – OH Treasurer Crashes Twice, Makes No Staff Report

Miami Herald – Julie Carr Smyth (Associated Press) | Published: 8/27/2013

Ohio Treasurer Josh Mandel might have violated state and federal campaign laws by traveling across the state this year in a vehicle bought by his failed 2012 U.S. Senate campaign. The possible violation only came to light after a traffic accident in which the Jeep Grand Cherokee was totaled.

Texas – Texas Mayor, Brother, Dad Charged with Corruption

Kansas City Star; Associated Press –   | Published: 8/28/2013

The mayor of a small city in Texas and his brother, the president of the local school board, were charged in a public corruption case that prosecutors said maintained a stranglehold over local government business for years. Also arrested was Jose Vela, the pair’s father and a maintenance worker at the local high school. Prosecutors said he ran city government through his sons and a revolving door of city council and school board candidates recruited by his family.

Virginia – Lax Laws Lead to Cloudy View of Lobbyists’ Spending

The Virginian-Pilot – Julian Walker | Published: 8/29/2013

Lobbyists reported spending $15.9 million in Virginia from May 2012 to April 2013. But critics say it is an incomplete financial picture of all that goes into policy persuasion and legislative influence in a state with lax reporting standards and enforcement of lobbyist disclosures.

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:

Campaign Finance Advocates Sue IRS

The Hill – Bernie Becker | Published: 8/21/2013

U.S. Rep. Chris Van Hollen (D-Md.) and watchdog groups filed a lawsuit challenging the IRS’ interpretation of a law that governs whether groups qualify for tax-exempt status as so-called social welfare organizations. The suit addresses one of the main concerns that surfaced with the recent IRS targeting controversy: differences between federal law and IRS rules on eligibility for 501(c)(4) candidates.

U.S. Lawmakers Travel the World on Lobbyists’ Tab

Reuters – Richard Cowen | Published: 8/19/2013

Lately, the number of privately financed trips for federal lawmakers offered by corporate interests, lobbyists, universities, and foreign governments have been rising. Trips this year total 1,363, at a cost to the hosts of $3.2 million. Congress clamped down on such travel in 2007 after disgraced lobbyist Jack Abramoff’s influence-peddling scandal.

From the States and Municipalities:

Arkansas – After Ethics Fine, Paul Bookout Resigns from Legislature

Arkansas Business Journal; Associated Press –   | Published: 8/21/2013

Sen. Paul Bookout resigned his seat in the Arkansas Legislature on the same day a special prosecutor was assigned to investigate his campaign finances. His resignation came days after the state Ethics Commission fined and reprimanded the veteran lawmaker for converting thousands of dollars in political contributions to his personal use.

California – Filner Could Be Out by Friday

San Diego Union Tribune – Craig Gustafson and Mark Walker | Published: 8/21/2013

A tentative deal has been reached in the sexual harassment lawsuit against San Diego Mayor Bob Filner that is likely to oust him from office. City Attorney Jan Goldsmith announced the plan after three days of settlement talks, but said he could not divulge any details until the proposed resolution is approved by the city council, which could happen on August 23. Filner has been under siege for weeks amid allegations he repeatedly sexually harassed women.

California – Hansen Revealed as Arena Petition Backer

Sacramento Bee – Dale Kasler and Tony Bizjak | Published: 8/17/2013

Weeks after billionaire Chris Hansen lost a bid to move the Sacramento Kings to Seattle, he made an undisclosed donation to a group trying to defeat plans to build a new facility for the National Basketball Association team in California. The Fair Political Practices Commission said the money was used to gather signatures for a ballot initiative designed to put to a citywide vote the council’s planned $258 million subsidy for a downtown arena.

Maine – For Maine Governor, Issue Is What They Said He Said

New York Times – Katharine Seelye and Jess Bidgood | Published: 8/20/2013

Maine Gov. Paul LePage denied he said President Barak Obama “hates white people.” Two Republican lawmakers said they heard the governor make the comment during a state Republican Party fundraiser. The problem for LePage, as even some of his allies acknowledge, is whether or not he made this particular comment, he has made so many other blunt assertions that while one more may not matter, the accumulation of such comments could.

Massachusetts – In Mass., Political Lobbying a $100M-a-Year Industry

Lowell Sun – Steve LeBlanc (Associated Press) | Published: 8/19/2013

In 2005, there were just over 800 lobbyists registered in Massachusetts. By 2012, that number had soared to more than 1,600. In part, the increase is due to a change in the definition of a lobbyist. The broadened definition, prompted by a 2009 ethics law, forced many individuals who had avoided the label to officially register.

New York – Nonprofits Are Balking at Law on Disclosing Political Donors

New York Times – Thomas Kaplan | Published: 8/20/2013

New York has emerged as a central battleground for efforts to mandate greater disclosure. Two years after a law was enacted that required tax-exempt groups lobbying state government to reveal where they got their money, a growing number of nonprofit organizations are seeking exemptions, arguing their donors could be endangered if their names were released to the public.

New York – Utility Officials Fined on Freebies

Albany Times Union – James Odato | Published: 8/15/2013

A year after national grid paid the New York Public Service Commission (PSC) $1.67 million to settle charges of providing illegal gifts to state regulators, the utility has agreed to pay $25,000 to settle the same charges with the Joint Commission on Public Ethics (JCOPE). The PSC fined National Grid for violating the public service law; JCOPE penalized the utility for violating state lobbying law.

Ohio – Ohio Ethics Chief: Kasich made clean company break

Miami Herald – Julie Carr Smyth (Associated Press) | Published: 8/15/2013

Ohio Ethics Commission Chairperson Merom Brachman said there is no need for an ethics probe of Gov. John Kasich’s relationship to a company that received hundreds of thousands of dollars in state development tax credits. Brachman, noting the commission is “anxious to not become a political theater,” said data provided by the governor shows conclusively there is no conflict-of-interest to investigate.

Pennsylvania – State Officials’ Free Gala Tickets Lead To Discrepancies in Ethics Reports

WITF – Mary Wilson | Published: 8/19/2013

The way Gov. Tom Corbett and a few state lawmakers treated free tickets to a Philadelphia soiree shows a wide variety of interpretations of Pennsylvania’s ethics law. Last year, the Barnes Foundation threw a gala celebrating its new museum and gave some legislators and members of the administration free entry. For other patrons, tickets were $5,000 each. State law requires gifts of such a value to be publicly disclosed.

South Carolina – Haley’s Attorneys Tried to Get Ethics Charges Dropped

The State – Adam Beam | Published: 8/15/2013

Emails between the South Carolina Ethics Commission and Gov. Nikki Haley’s attorney show she agreed to pay a fine and end allegations over campaign donors’ missing addresses only after irritated commissioners nearly took an agreement off the table and called a public hearing. Haley agreed to pay $3,500, reimburse the ethics agency $2,000, and forward money from eight donors, totaling nearly $4,200, to the Children’s Trust Fund.

Tennessee – Democrats Missing from Panels to Rule on Ethics Complaints against Haslam

Knoxville News Sentinel – Tom Humphrey | Published: 8/17/2013

A former state Democratic Party chairperson filed complaints with the Tennessee Ethics Commission and the Registry of Election Finance, contending Gov. Bill Haslam violated the law by not disclosing his personal payments to lobbyist and political operative Tom Ingram. The commission and registry currently have Republican majority membership because of unfilled vacancies in one case, because Haslam has left a seat designated for a Democrat empty since March.

Virginia – Attorneys for McDonnells to Meet with Prosecutors as Key Phase Opens in Gifts Probe

Washington Post – Rosalind Helderman and Carol Leonnig | Published: 8/19/2013

Attorneys for Virginia Gov. Robert McDonnell and his wife met with federal prosecutors over the gifts scandal that has dominated state politics. The meetings open a critical phase of the investigation, timed to help prosecutors decide over the next few weeks whether to file charges, according to two people with knowledge of the investigation.

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

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

National:

Many Ex-Governors Work as Lobbyists, Consultants

USA Today – Fredreka Schouten | Published: 8/11/2013

A USA Today review found ten of the 32 governors who have left office since 2011 now work for trade associations or consulting and lobbying firms that allow them to help clients navigate government agencies. Several former governors said they have unique expertise about the way government operates, but that does not mean they are wielding undue influence on behalf of their clients.

Federal:

A Former Engine of the G.O.P., the Town Hall Meeting, Cools Down

New York Times – Jeremy Peters | Published: 8/12/2013

Though Republicans in recent years have harnessed the political power of town hall meetings, people from both parties say they are noticing a decline in the number of such events. With memories of angry protests still vivid, it seems one of the unintended consequences of a tea party movement that thrived on such open, often confrontational interactions with lawmakers is there are fewer members of Congress now willing to face their constituents.

Jesse L. Jackson Jr. Sentenced to 30 Months in Prison

Washington Post – Ann Marimow | Published: 8/14/2013

Former U.S. Rep. Jesse Jackson, Jr. (D-Ill.) was sentenced to two-and-a-half years in prison after pleading guilty to scheming to spend $750,000 in campaign funds on costly personal items, including a $43,350 gold-plated Rolex watch. His wife, former Chicago Ald. Sandra Jackson, was sentenced to a year in prison for filing joint federal income tax returns that understated the couple’s income.

From the States and Municipalities:

California – Spokesman for California Assembly Speaker John Perez Wears Many Hats

Sacramento Bee – Laural Rosenhall | Published: 8/8/2013

Steven Maviglio is on a short-term contract as a media consultant to California Assembly Speaker John Pérez that ends when the legislative session concludes in September. Through his Forza Communications firm, Maviglio also works for private-sector clients; some are advocacy groups who have paid him to promote their bills moving through the Legislature.

Florida – Palmetto Bay Lobbyist Tipped Off FBI to Miami-Dade Mayors, Lobbyists Arrested in Corruption Probe

Miami Herald – Patricia Mazzei, Jay Weaver, and Charles Rabin | Published: 8/10/2013

A two-year investigation culminated recently with the arrests of Miami Lakes Mayor Michael Pizzi and lobbyist Richard Candia, along with Sweetwater Mayor Manny Maroño and his friend and business partner, lobbyist Jorge Forte. Sources said lobbyist Michael Kesti acted as an informant in the probe because he wanted to bring the FBI’s attention to influence-peddling among a network of Miami-Dade County lobbyists and mayors.

Indiana – Charges Dismissed against Former Indiana Utility Regulator David Lott Hardy

Indianapolis Star – John Russell | Published: 8/12/2013

A judge threw out four felony counts of official misconduct against Indiana’s former top utility regulator. David Lott Hardy’s behavior as Indiana Utility Regulatory Commission chairperson in connection with the Duke Energy ethics scandal was not criminal, said Marion Superior Court Judge William Nelson. But Nelson scolded Hardy for “betraying the trust” of Indiana citizens.

Mississippi – All Expenses Paid? Some Lawmakers Request Reimbursement for Lobbyist-Funded Treks

Jackson Clarion-Ledger – Geoff Pender | Published: 8/10/2013

Last summer, 19 state lawmakers attended a conference sponsored by the Mississippi Consumer Finance Association. Although some lawmakers described the event as all expenses paid, four House members also filed for reimbursement totaling more than $2,300 on their state expense accounts. Yet disclosure reports show lobbyists paid a total of $5,600 for the four legislators.

Missouri – Campaign Finance Lawsuit Pits Mega-Donor Rex Sinquefield against Missouri Pro-Life Groups

Kansas City Star – Jason Hancock | Published: 8/12/2013

A retired investment executive who has given millions of dollars to campaigns has filed a lawsuit challenging a proposed ballot measure seeking to establish campaign contribution limits in Missouri. Rex Sinquefield argues the limits would infringe on constitutional rights to free speech and free association. The suit contends the proposed caps are so low they inhibit effective advocacy, particularly as political campaigns become more costly.

Nevada – Nevada’s Secretary of State Moves to Clarify State Ethics Law

Las Vegas Sun – Andrew Doughman | Published: 8/8/2013

Nevada Secretary of State Ross Miller is seeking clarification from state agencies about how they have defined “gift.” Elected officials must disclose gifts worth more than $200, but Miller said they often fail to follow the law because it does not define a gift. Absent a statutory definition, a body of legal opinions could at least provide some guidance for what elected officials must disclose if they want to obey to the law, said Miller.

New Jersey – Birdsall Trustee Files Two Lawsuits to Recoup Millions in Losses

Asbury Park Press – Kathleen Hopkins | Published: 8/12/2013

The court-appointed trustee of Birdsall Services Group, the politically connected engineering firm that pleaded guilty earlier this year to making illegal campaign contributions in New Jersey, filed a federal lawsuit to recoup money the company spent on the legal expenses of former employees, alleging the payments were illegally authorized. Edwin Stier also sued 21 former top company officials, claiming their actions contributed to the firm’s collapse and caused its value to plummet.

New York – Ethics Panel Survey Launched

Albany Times Union – Rick Karlin | Published: 8/14/2013

A survey asking recipients to comment on the effectiveness of New York’s ethics law was sent to members of the state Legislature, leaders of watchdog groups, general counsels to state agencies, lobbyists, and academics. It asks about the Joint Commission on Public Ethics’ successes and shortcomings. A report on the survey will be issued later this year.

North Carolina – Voting Bill Signed; Legal Challenges Start

Charlotte Observer – Jim Morrill | Published: 8/12/2013

North Carolina Gov. Patrick McCrory signed a sweeping voting reform bill recently. Civil rights groups immediately filed lawsuits in federal court challenging the statute. The law also raises campaign contribution limits from $4,000 to $5,000 and indexes them to inflation. Starting October 1, lobbyists will not be able to pass along any donation to a candidate; the old law only prohibited the delivering of bundled contributions.

Pennsylvania – Lobbyists Fight State Fee Increase

Pittsburgh Post-Gazette – Kate Giammarise | Published: 8/12/2013

A proposal by the Pennsylvania Department of State would increase the biennial fee paid by registered lobbyists from $200 to $700. State officials say the increase is needed to maintain an online database and defray other costs of administering the lobbyist disclosure law. But many nonprofit groups say the increase will hurt their ability to discuss policy with lawmakers and watchdogs are concerned it could lead to less transparency.

Texas – White Male Democrats in Texas Legislature Are Nearly Extinct

Dallas Morning News – Gromer Jeffers, Jr. | Published: 8/11/2013

Next year’s elections could leave five or fewer white male Democrats in the Texas House. As Democrats put their emphasis on turning out more women and Hispanic voters and Republicans try to maintain advantages in the state’s small towns and rural areas, the trend, decades in the making, is expected to continue.

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:

All the D.C. Donors, Now Put Your Checks Up

Politico – Byron Tau | Published: 8/3/2013

Campaign fundraising in Washington, D.C. has moved from staid receptions to high-profile concerts and sporting events. Most often, these events take place in a rented skybox at the Verizon Center paid for by a corporate PAC or a congressional campaign. Fundraising professionals say pairing a campaign fundraiser with a big event like a Beyoncé concert helps attract more attention from potential donors and ultimately brings in bigger contributions.

Republican Says E-mails Could Mean FEC-IRS Collusion

CNN – Dana Bash and Alan Silverleib | Published: 8/6/2013

FEC Vice Chairperson Donald McGahn said an investigator from his agency contacted Lois Lerner, the IRS employee at the center of the controversy over the alleged targeting of conservative groups. He said the contact was made to discuss the status of one such political advocacy group. Shortly after Lerner was contacted, the IRS sent a questionnaire to the American Future Fund, said McGahn. He said such contact was “probably out of the ordinary” and FEC members had not given staff permission to reach out to the IRS.

From the States and Municipalities:

California – L.A. County Won’t Sell Bonds to School Bond Campaign Donors

Los Angeles Times – Dan Weikel | Published: 8/6/2013

Los Angeles County Treasurer Mark Saladino said his office will no longer do business with securities brokers that make political contributions to school bond campaigns. The restriction applies to monetary donations, non-monetary contributions, and pre-election services, such as polling, voter outreach, and consulting.

Connecticut – Bills May Die, but Concepts Don’t

CTNewsJunkie.com – Hugh McQuaid | Published: 8/7/2013

Connecticut’s Legislative Research Office found at least 89 provisions that began this year in one bill, only to be signed into law under another. The number comes from an annual bill tracking report the office puts together after each legislative session. It documents instances when a concept became law in a manner other than the traditional legislative process.

Florida – Miami Lakes and Sweetwater Mayors ‘Stung’ by FBI for Taking Alleged Kickbacks

Miami Herald – Jay Weaver, Christina Veiga, and Joey Flecha | Published: 8/6/2013

The FBI arrested Miami Lakes Mayor Michael Pizzi and Sweetwater Mayor Manuel Maroño on bribery-related charges. Prosecutors said Pizzi and lobbyist Richard Candia were involved in a kickback and bribery scheme over federal grants in Miami Lakes and Medley, where Pizzi is town attorney. An indictment claims Maroño and lobbyist Jorge Forte were involved in a kickback and bribery scheme over grants for Sweetwater, where Maroño has been mayor since 2003.

Massachusetts – Galvin Faulted on Rules for Lobbyists

Boston Globe – Michael Levenson | Published: 8/7/2013

Massachusetts Secretary of State William Galvin was ordered to cover more than $100,000 in legal fees for a group of lobbyists who challenged his interpretation of the state’s revamped ethics laws. A judge found Galvin overstepped his authority by trying to force lobbyists to report every time they spoke to a legislator or state official, even casual, chance meetings.

New Hampshire – Ethics Committee: Special E-ZPasses don’t violate gift limits for N.H. lawmakers

Concord Monitor – Ben Leubsdorf | Published: 8/5/2013

E-ZPasses given to New Hampshire lawmakers do not violate ethics rules. Rep. Frank Sapareto had asked the Legislative Ethics Committee if they counted as a perk with a value in excess of the $25 limit on gifts to legislators.

New York – Citing Irregularities, City Board Rejects Public Money for Liu’s Campaign

New York Times – David Chen | Published: 8/5/2013

New York City Comptroller John Liu was denied about $3 million in public matching funds in his bid for the Democratic mayoral nomination after the Campaign Finance Board said it found evidence of possible “serious and pervasive” violations. In May, Liu’s former campaign treasurer and a fundraiser were convicted of trying to subvert the city’s campaign finance system with straw donors to obtain matching funds.

North Carolina – Video Shows Lawmakers Dancing on NC House Floor

WCNC – Ben Thompson | Published: 7/31/2013

A video shows a Republican lawmaker and an aide dancing on the North Carolina House floor near the end of the legislative session. One headline reads “NC House Dances with Joy over its Accomplishments,” and is accompanied by an editorial criticizing lawmakers.” The video shows a man and woman dancing, while another woman plays a fiddle. But some say the headlines and descriptions of the clip are misleading.

Oklahoma – Outdated Software Plagues Oklahoma Ethics Commission

The Oklahoman – Michael McNutt | Published: 8/3/2013

Financial information about campaigns and lobbyist spending posted on the Oklahoma Ethics Commission’s Web site is not accurate because of software glitches. Commission Executive Director Lee Slater said he will be ask lawmakers for funds next year to buy a new software system but until then, visitors to the site will have to put up with a system in which data posted by some candidates and lobbyists randomly does not show up.

South Carolina – Lobbyists Wined, Dined Lawmakers 95 Times

The State – Amanda Coyne | Published: 8/4/2013

During the 2013 legislative session, special interests hosted 95 breakfasts, luncheons, dinners, or receptions for South Carolina legislators and others. The meals and receptions regularly cost nearly $6,000 apiece. At least two held during the last legislative session cost far more, one almost $17,000 and another $20,000.

Tennessee – Nashville Lobbyist Murphy and Associates Faces Ethics Audit

The Tennessean – Chas Sisk | Published: 8/6/2013

An audit said a lobbyist receiving 10 percent of the state funding provided to the Tennessee Disability Coalition – more than $64,000 in one year – may violate a law banning lobbyist contingency fees. An attorney for lobbyist Jennifer Murphy disputes the contention and said even if the contractual arrangement was a contingency fee, it dates from 2002, four years before the prohibition was enacted as part of an ethics reform package.

Virginia – Donor Jonnie Williams, Star Scientific Are Cooperating in Probe of Gov. Robert McDonnell

Washington Post – Carol Leonnig and Rosalind Helderman | Published: 8/5/2013

Sources said Star Scientific Chief Executive Officer Jonnie Williams, Sr. has turned over personal financial records and sat for interviews in which he provided firsthand accounts of gifts and more than $120,000 given to Virginia Gov. Robert McDonnell and his family members since 2011. The cooperation is an ominous sign for McDonnell, suggesting federal prosecutors are focused on trying to build a potential criminal case against him.

West Virginia – Judge Ends Cap on Contributions to Indie PACs

Charleston Gazette – Kate White | Published: 8/7/2013

U.S. District Court Judge Thomas Johnston signed an order that strikes down struck down state laws limiting contributions to independent PACs. The $1,000 limit still applies to donations made directly to candidates and their campaign committees, PACs that contribute directly to candidates, and political parties.

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

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

National:

Heiresses Apparent: Daughters take their turn for the political dynasty

Washington Post – Emily Heil | Published: 7/26/2013

Perhaps more than any previous year, the 2014 midterm campaigns feature a wave of daughters eager to embrace their fathers’ political legacies while forging their own political futures. And at a time when the 2016 presidential field appears likely to include both the son of a prominent politician (Rand Paul) and the wife of a president (Hillary Clinton), it is no surprise that daughters are forming a political class of their own.

State Republican Parties Mired in Dysfunction

The Associated Press – Steve Peoples | Published: 7/25/2013

Several state Republican leaders have been forced out or resigned in recent months, and many state parties face financial problems and skeptical national leaders. The conflicts highlight the tug of war over the GOP’s future as national leaders work to improve the party’s brand. At the same time, the dysfunction raises questions about the GOP’s ability to coordinate political activities in key battleground states ahead of the midterm elections.

Federal:

Next Citizens United? McCutcheon Supreme Court Case Targets Campaign Contribution Limits

Huffington Post – Paul Blumenthal | Published: 7/31/2013

Electrical engineer and budding political donor Shaun McCutcheon, now joined by the Republican National Committee, is bringing the biggest campaign finance case before the U.S. Supreme Court since the controversial 2010 Citizens United decision. If the justices rule in their next term for McCutcheon, it would mark the first time the court had found a federal contribution limit unconstitutional and would open the door for even more money to flood the political system.

Women Lobbyists May Be Worth More

National Journal – Elahe Izadi | Published: 7/30/2013

While men outnumber women on K Street, an analysis by LegisStorm shows individual lobbying contracts held by women are worth more on average than those held by men. The study, one of the first of its kind, offers a window on Washington’s roughly $3 billion lobbying industry and how it is evolving.

From the States and Municipalities:

Alabama – Corporations Can Make Unlimited Campaign Contributions

Gadsden Times – Philip Rawls (Associated Press) | Published: 8/1/2013

Companies can now give unlimited amounts to candidates in Alabama. The end of the $500 limit on August 1 means Alabama will become the fifth state with no cap on campaign donations. Lobbyist Bob Geddie said some companies may contribute directly to candidates now that the limit is off, but most will keep donating to PACs. He said if their corporate name ends up on a candidate’s campaign finance report, they know others will call for donations.

Arizona – Supporters Ask Judge to Block Higher Campaign Limits

Arizona Daily Sun – Howard Fischer (Capitol News Services) | Published: 7/31/2013

The Arizona Citizens Clean Elections Commission asked Maricopa County Superior Court to block an increase in state campaign contribution limits. The state Supreme Court declined to consider the commission’s special-action lawsuit in the matter. The plaintiffs were allowed to start over by filing the lawsuit anew with a lower court.

California – Cupid’s Work Gets Complicated as California Lawmaker Dates Lobbyist

Sacramento Bee – Laurel Rosenhall | Published: 7/31/2013

State Assemblyperson Brian Maienschein is dating Carolyn Ginno, a lobbyist for the California Medical Association. While the romance does not violate any rules, it has raised concerns among some good government groups. Watchdogs said Maienschein should step down from committees that routinely vote on bills the association lobbies, such as the health and business panels.

Colorado – Chieftain Newsroom Execs Sign Giron Recall Petitions, Blasted for ‘Ethics Conflict’

Huffington Post – John Tomasic (Colorado Independent) | Published: 7/30/2013

A local activist group reported Pueblo Chieftain General Manager Ray Stafford and at least two other newsroom executives signed petitions to have Colorado Sen. Angela Giron recalled over her support for gun-control laws. The group said the signatures amount to a breach of professional ethics. Stafford also wrote Giron an e-mail that many viewed as a threat.

Illinois – Scandal Puts Focus on ‘Toothless’ Ill. Ethics Law

Chicago Tribune – Kerry Lester (Associated Press) | Published: 7/30/2013

The Legislative Ethics Commission has agreed to look into whether Illinois House Speaker Michael Madigan and two of his fellow Democrats tried to use clout to interfere with personnel matters at Metra, the Chicago-area transit agency. But the committee is working under a law that critics say is too vague on what constitutes a conflict-of-interest and lacks sufficient enforcement powers.

Indiana – Tony Bennett, Former Indiana School Superintendent, Changed Top GOP Donor’s School’s Grade

Huffington Post – Tony LoBianco (Associated Press) | Published: 7/29/2013

Tony Bennett, the then-head of the Indiana department of Education, pressed for changes to the state’s school grading formula to help a campaign donor’s charter school. According to e-mails obtained by The Associated Press, Bennett demanded the changes when it appeared a charter school backed by influential Republican donor Christel DeHaan was going to earn a “C” in the state’s grading system.

Missouri – In Missouri, Campaign Donors Fund Phones, Sports Tickets, Golf Balls

St. Louis Post-Dispatch – Elizabeth Crisp | Published: 7/31/2013

A St. Louis Post-Dispatch analysis shows lawmakers and statewide officials often turn to their campaign funds to pay for a wide range of personal expenses that, they argue, are associated with their official or campaign duties. Meals, travel, and fundraising events – including costs associated with popular golf tournaments – were among the major expenses for candidates and elected officials.

New York – Exemption Rules under Review

Albany Times Union – Jimmy Vielkind | Published: 7/30/2013

The Joint Commission on Public Ethics is putting off a decision on applications from lobbying groups hoping to shield their donors from public view as it debates tweaks to its regulations. Emergency rules that will become permanent in August allow the commission to exempt donors that face “harm, threats, harassment, or reprisals” if it became known they were contributing to a cause. Commissioners agreed to have a public discussion on amending the exemption, possibly in early September.

North Carolina – McCrory Not Up On Voter Law He Signed

Charlotte Post – Michael Biesecker (Associated Press) | Published: 8/1/2013

North Carolina Gov. Pat McCrory signed into law a bill that makes extensive changes to the state’s election law, even though he admitted he was not familiar with key provisions on preventing voter fraud. At a press conference, the governor did single out the section of the bill that prohibits lobbyists from passing campaign donations directly to lawmakers.

South Carolina – State House for Sale: SC’s unregistered lobbyists profit in ‘gray area’

The State – Jamie Self | Published: 7/27/2013

Many companies and groups in South Carolina seek state money each year. To press their cases, they employ hundreds of lobbyists. But not everyone trying to influence lawmakers registers with the state as a lobbyist as required by the ethics law.

Tennessee – Ethics Panel Stalls on Tom Ingram Lobbying Hearing; Dismissal Vote Falls Short

Knoxville News Sentinel – Tom Humphrey | Published: 8/1/2013

A vote to scuttle penalties against prominent political operative Tom Ingram fell short in the Tennessee Ethics Commission. The panel voted three-to-one to drop the cases against Ingram, his colleague Marcille Durham, and client Hillsborough Resources for failing to register to lobby for three years on behalf of a coal company seeking to mine on public lands. That is one vote short of the minimum needed to pass, so members agreed to hear the cases again at a September meeting.

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:

Business Donations to Judges’ Campaigns Often Equal Friendly Rulings

State Legislators’ Ties to Nonprofit Groups Prove Fertile Ground for Corruption

Federal:

U.S. Attorney’s Office Files Suit against Lobbying Firm

From the States and Municipalities:

Colorado – Colorado Secretary of State Scott Gessler Wrong to Use State Funds for Trip, Ethics Commission Rules

District of Columbia – Former D.C. Council Member Brown Pleads Guilty to Bribe Charge

Florida – In Abolishing CCEs, Legislators Overlooked One Glitch

Iowa – Iowa Appeals Court Upholds Campaign Disclosure Law

Maryland – Rawlings-Blake Says She Stayed at Lobbyist’s Beach House

Montana – New Political Practices Chief Wants Robust Discourse, but ‘Maximum Disclosure’

Nebraska – Legislative Show Criticized as Tasteless, too Kind to Liberals

New Jersey – NJ Engineering Firm Birdsall Pleads Guilty in Illegal Donations Scheme, Agrees to Pay $1 Million

New York – Cuomo: Raise ethics bar

Pennsylvania – Lobbyists Would Shell Out More under Fee Hike

Wisconsin – Assembly Passes Bipartisan Elections Bill

Wisconsin – Wisconsin Journalism Group Stunned by Budget Provision

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.