August 30, 2019 •
News You Can Use Digest – August 30, 2019
![News You Can Use Digest – August 30, 2019](https://stateandfed.com/wp-content/uploads/2019/05/NYCU-Logo-e1662491950752-1000x563.png)
National/Federal Barr Books Trump’s Hotel for $30,000 Holiday Party MSN – Jonathan O’Connell and David Fahrenthold (Washington Post) | Published: 8/27/2019 Attorney General William Barr will hold a family holiday party for 200 people at Trump International Hotel in December that […]
National/Federal
Barr Books Trump’s Hotel for $30,000 Holiday Party
MSN – Jonathan O’Connell and David Fahrenthold (Washington Post) | Published: 8/27/2019
Attorney General William Barr will hold a family holiday party for 200 people at Trump International Hotel in December that is likely to cost $30,000. Barr is paying for the event himself and chose the venue only after other hotels were booked, according to a Department of Justice official. The official said the purpose of Barr’s party was not to curry favor with the president. Barr holds the bash annually, and it combines holiday festivities and a cèilidh, a party featuring Irish or Scottish music. Barr’s decision to book his boss’s hotel marks the latest collision between Trump’s administration and his business, which the president no longer operates but from which he still benefits financially.
Could Take FEC a While to Regain a Quorum, But Don’t Expect a ‘Wild West’
Roll Call – Kate Ackley | Published: 8/28/2019
FEC Vice Chairperson Matthew Petersen announced he will be stepping down by the end of August. The departure leaves the FEC with only three out of six commissioners, which means the agency is one vote short of the minimum of four votes needed to initiate audits, engage in rulemaking, vote on enforcement matters, issue an advisory opinion, or hold meetings. Still, those who advise campaigns and donors, or focus on campaign finance law, say the 2020 campaigns will not be entirely without legal checks or public relations concerns. In 2008, the FEC lacked a quorum for a few months. A senior Senate GOP aide said despite an apparent lack of movement on the matter, there is an ongoing effort to fill all six FEC seats.
David Koch Leaves Behind Legacy of Dark Money Political Network
Roll Call – Kete Ackley | Published: 8/23/2019
David Koch, who helped pioneer a network of often surreptitious organizations aimed at influencing elections and public policy, leaves behind a legacy of “dark-money” groups and a volatile political landscape. Koch, one half of the Koch Brothers along with his older brother Charles, has died at age 79. Congressional and K Street insiders, whether they agreed with the Kochs’ libertarian-conservative ideology or fought it, agreed that David Koch left a lasting imprint on the nation’s politics. The Koch network, which includes such groups as Americans for Prosperity, helped to resuscitate the Republican Party after its losses in the 2008 presidential and congressional elections and helped give rise to the tea party movement.
Ethics Outcry as Trump Touts ‘Magnificent’ Doral for Next G7
AP News – Bernard Condon and Adriana Gomez Licon | Published: 8/26/2019
Watchdogs have long railed against the perils of Donald Trump earning money off the presidency and hosting foreign leaders at his properties. But they say Trump’s proposal to bring world leaders to his Miami-area resort for the next Group of 7 meeting takes the conflict-of-interest to a whole new level because, unlike stays at his Washington, D.C., they would have no choice but to spend money at his property. Trump’s pitch comes as several lawsuits accusing the president of violating the U.S. Constitution’s emoluments clause, which bans gifts from foreign governments, wind their way through the courts. It also comes as Doral, by far the biggest revenue generator among the Trump Organization’s 17 golf properties, appears to have taken a hit from Trump’s move into politics.
Facebook Tightens Political Ad Rules, But Leaves Loopholes
AP News – Barbara Ortutay | Published: 8/27/2019
Facebook said it would tighten some of its rules around political advertising ahead of the 2020 presidential election. The changes include a tightened verification process that will require anyone wanting to run ads pertaining to elections, politics, or big social issues like guns and immigration to confirm their identity and prove they are in the U.S. Beginning in mid-September, such advertisers confirm their group’s identity using their organization’s tax identification number or other government ID. A loophole that will allow small grassroots groups and local politicians to run political ads could continue to allow bad actors to take advantage of the process.
Joe Walsh Says Trump Is ‘Unfit’ to Be President. Some Say the Same About Him.
ENM News – Matt Stevens and Annie Karni (New York Times) | Published: 8/27/2019
Former U.S. Rep. Joe Walsh, now a conservative radio show host, is challenging President Trump for the Republican nomination on the basis that he represents an alternative to a president who is morally unfit to hold his office. But in the days since Walsh announced his bid, he has been forced to confront his own highly questionable behavior. As Walsh introduces himself to voters, his long trail of racist and anti-Muslim statements, voiced for years on his conservative radio show and on Twitter, have revealed more similarities with Trump than stark differences in views and temperament.
Kirsten Gillibrand Exits Presidential Race
Politico – Elena Schneider | Published: 8/28/2019
U.S. Sen. Kirsten Gillibrand ended her bid for the presidency. Gillibrand, who ran a distinctly feminist campaign, failed to meet the Democratic National Committee’s criteria for the September presidential debate. A statement released by her campaign cited her lack of “access to the debate” stage as a reason she decided to end her run. Gillibrand struggled to stand out of the sprawling, diverse Democratic primary field, which included five other women. Like other candidates languishing at single or near zero digits in national polling, Gillibrand was not able to pull off a breakthrough moment.
Obama Announces New Push in Fight Against Gerrymandering
HuffPost – Sam Levine | Published: 8/27/2019
A group backed by President Obama will send experts to train people across the country on the basics of redistricting as part an effort to fight excessive partisan gerrymandering. The new effort, called Redistricting U, comes as states are gearing up for the next round of map drawing, which will take place in 2021. The redistricting process, which takes just once per decade, is expected to be a brutal brawl for partisan advantage. The U.S. Supreme Court ruled in June that there were no constitutional limits on how severely states could manipulate district lines to benefit political parties.
Sen. Johnny Isakson to Resign at End of the Year
Politico – Burgess Everett | Published: 8/28/2019
U.S. Sen. Johnny Isakson is resigning at the end of 2019 in the face of mounting health problems, adding another competitive seat as Republicans look to defend their narrow majority in 2020. Isakson’s term runs through 2022, and Georgia Gov. Brian Kemp, under state law, is allowed to fill the vacant U.S. Senate seat. A special election will be held to fill the remaining two years of Isakson’s term during the next regularly scheduled election, meaning Georgia voters will cast ballots for both of the state’s Senate seats in 2020. The state has typically been safe conservative territory in recent years, but Democrats are increasingly optimistic about their ability to compete there. Democrat Stacey Abrams narrowly lost to Kemp in the gubernatorial election in 2018.
The Boss Can Tell You to Show Up for a Trump Rally
The Atlantic – Charlotte Garden | Published: 8/28/2019
When President Trump arrived in Pennsylvania to give a speech about energy policy at a Royal Dutch Shell plant, he had a ready-made audience comprised of workers who, it turns out, were paid to be there. The company suggested this event was simply a “training day” featuring a prominent guest speaker and offered that workers could take a day of paid time off instead of attending, which would mean they would lose overtime pay. That alternative may have been realistic for some workers, but others must have felt the only option was to attend the rally. Employers have a largely unconstrained ability to try to influence their workers’ political choices. Sometimes, employers and their lobbyists hope to benefit from workers’ legitimacy on issues that affect them by leveraging their voices in lobbying campaigns.
Trial of High-Powered Lawyer Gregory Craig Exposes Seamy Side of Washington’s Elite
ENM News – Sharon LaFraniere (New York Times) | Published: 8/26/2019
The most riveting aspect of the case against Gregory Craig, one of Washington, D.C.’s most prominent lawyers, is not his innocence or guilt. Rather, it is the depiction of the seamy world of power brokers like Craig that prosecutors have painted during testimony and in an array of court filings. Craig is charged with lying to investigators about the role of his law firm – Skadden, Arps, Slate, Meagher & Flom – in a public relations effort surrounding a report it created for former Ukrainian President Viktor Yanukovych. The details of the case include a $4 million payment shunted through a secret offshore account to Skadden and a bungled wiretap by a suspected Russian intelligence asset nicknamed “the angry midget.” They illustrate how lawyers, lobbyists, and public relations specialists leapt to cash in on a foreign government’s hopes of papering over its sordid reputation.
Trump’s Bank Has Tax Records Congress Is Seeking in Subpoenas Targeting the President’s Finances
MSN – Ann Marimow (Washington Post) | Published: 8/27/2019
President Trump’s biggest lender has in its possession tax records Congress is seeking in targeting the president’s financial dealings, the bank told a federal appeals court. The disclosure from Deutsche Bank came in response to a court order as part of a legal battle between Congress and the president over access to Trump’s business records. The revelation provides new details about the pool of possible documents Congress could eventually obtain. The House Financial Services and Intelligence committees have subpoenaed the banks for years of financial documents from the president, his three eldest children, and the president’s companies.
Trump’s ‘Chopper Talk’ Puts Media on the Defensive
Politico – Michael Calderone and Daniel Lippman | Published: 8/22/2019
As reporters shouted questions above the din of a helicopter’s churning engines, President Trump picked the ones he wanted and brushed past those he did not. The impromptu news conference near Marine One may have looked bizarre to veteran observers of the White House, but there is a method to the seeming madness. The “Chopper Talk” sessions, as comedian Stephen Colbert has dubbed them, serve multiple goals for Trump, insiders say. They allow Trump to speak more often in front of the cameras than his predecessors, yet on his own terms. He makes headline-ready pronouncements and airs grievances for anywhere from a few minutes to a half-hour, and then walks away when he has had enough. Trump’s freewheeling sessions have essentially replaced the formal White House press briefing.
Watchdog: Comey violated FBI policies in handling of memos
AP News – Eric Tucker | Published: 8/29/2019
James Comey violated FBI policies in his handling of memos documenting private conversations with President Trump in the weeks before he was fired as director of the bureau, the Justice Department’s inspector general said. The watchdog’s office said Comey broke FBI rules by giving one memo containing unclassified information to a friend with instructions to share the contents with a reporter. Comey also failed to notify the FBI after he was dismissed in May 2017 that he had retained some of the memos in a safe at home, the report said. But the inspector general also concluded none of the information shared with the reporter was classified.
Canada
Canada – ‘Show Up and Do Something’: Critics call on lobbying commissioner to act on Dion report
Hill Times – Samantha Wright Allen and Beatrice Paez | Published: 8/26/2019
Ethics Commissioner Mario Dion’s damning report on Prime Minister Justin Trudeau documented previously undisclosed interactions between SNC-Lavalin and the government during the embattled company’s pursuit of a deferred prosecution agreement, raising questions from critics about whether it was operating in full compliance with federal lobbying regulations or whether disclosure rules should change. Dion reported then-Attorney General Jody Wilson-Raybould faced political pressure to override a decision not to offer the company a remediation agreement that would spare SNC from a criminal trial, which could have barred the company from competing for federal contracts for 10 years. Dion ruled Trudeau improperly pressured Wilson-Raybould in violation of the Conflict of Interest Act, which bars high-level officials from furthering another person’s or entity’s private interests.
From the States and Municipalities
Alabama – Limestone County’s 10-Term Sheriff Arrested on Ethics, Theft Charges
AL.com – Ashley Remkus | Published: 8/22/2019
Limestone County Sheriff Mike Blakely was arrested on theft and ethics charges that include accusations of taking money from campaign and law enforcement accounts. Blakely was the subject of an investigation by the Alabama Ethics Commission, which last year found probable cause the sheriff violated state ethics law. The commission sent the case to the attorney general’s office for investigation. In 2018, Blakely amended a 2016 ethics disclosure form to show he received more than $250,000 from Tennessee lottery and gaming establishments.
Arkansas – State Bureau OK’d to Hire Legal Counsel; in Corruption Probe, It’s to Go with Firm It Used Before
Arkansas Democrat-Gazette – Hunter Field | Published: 8/23/2019
The Arkansas legislative staff intends to rehire a law firm to represent it in the face of increasing requests from federal investigators. The probe into public corruption involving Arkansas lawmakers started at least six years ago with reports of legislators directing state General Improvement Fund grants to two nonprofits, a small college, and a substance abuse treatment center in exchange for kickbacks. The probe expanded to include lobbyists and former executives of a Missouri nonprofit, Preferred Family Healthcare, accused of paying bribes to Arkansas legislators in exchange for laws or state regulations favorable to their businesses. Also caught up was a former administrator of a youth lockup, accused of hiring a state legislator who was an attorney to perform political favors.
California – Will Letting Bars Stay Open Late Help Gavin Newsom? He’ll Soon Act on Bills Affecting His Company
Sacramento Bee – Sophia Bollag | Published: 8/27/2019
California Gov. Gavin Newsom, whose investments in the hospitality industry made him a millionaire, put his holdings in a blind trust after winning last year’s governor’s race. As a new officeholder, he issued an executive order forbidding state executive branch agencies from doing business with PlumpJack Group, the company he founded. Ethics experts say Newsom has done all he can short of selling his holdings to insulate himself from potential conflicts-of-interest. But as the state Legislature enters its final weeks for the year, Newsom will find himself faced with decisions about bills that could affect his bars, restaurants, and hotels. Experts say he will still face potential conflicts as long as he owns them.
Florida – In Campaign Shaded by #MeToo Claims, Former Commissioner Faces Man She Accused
Miami Herald – Martin Vassolo | Published: 8/22/2019
If all politics is personal, what is happening in Miami Beach appears to have gone beyond the pale. Kristen Rosen Gonzalez and Rafael Velasquez are running against each other this year for a seat on the Miami Beach City Commission, offering a unique glimpse at the dynamics of a post-#MeToo political campaign. Rosen Gonzalez had been helping Velasquez campaign for the commission in 2017 when she went public with her accusations that Velasquez exposed himself to her. Prosecutors declined to charge Velasquez and found evidence that conflicted with Rosen Gonzalez’s account, but did not pursue a counterclaim that she had fabricated the allegations.
Florida – State Senate Resolves Complaint Against NRA’s Top Lobbyist in Florida
Miami Herald – Jim Turner (News Service of Florida) | Published: 8/23/2019
The Florida Senate closed an investigation into NRA lobbyist Marion Hammer, instructing her to amend disclosure reports but not issuing any sanctions. She was accused of failing to divulge hundreds of thousands of dollars in payments she received from the NRA as required by the law. Hammer received $979,000 from the NRA from 2014 to 2018. As the director of the pro-gun group Unified Sportsmen of Florida, Hammer earns an annual salary of $110,000. That organization has been receiving $216,000 a year in funding from the NRA. Legislative officials said Unified Sportsmen’s lobbying reports should be amended to reflect its relationship with the NRA and the funding it has received. Hammer was directed to amend lobbyist registrations to reflect she was employed by Unified Sportsmen of Florida to represent the NRA.
Kentucky – Lexington Real Estate Executive Charged with 16 Campaign Finance Violations
Lexington Herald-Leader – Beth Musgrave | Published: 8/27/2019
A Lexington business executive was indicted by a Fayette County grand jury for 16 violations of Kentucky’s campaign finance law. Timothy Wayne Wellman was charged for allegedly giving campaign contributions to straw donors and then reimbursing those contributors after the donations were made. State law prohibits individuals from giving more than $2,000 per election cycle. He was indicted in June on nine federal counts of allegedly lying and instructing others to lie about campaign contributions to Lexington-Fayette Urban County Council candidates during the May 2018 primary.
Maine – Inside Susan Collins’ Reelection Fight in the Age of Trump
Politico – Burgess Everett | Published: 8/26/2019
U.S. Sen. Susan Collins is facing the race of her life despite her universal name recognition and bipartisan reputation. President Trump is targeting Maine as a battleground while his divisive politics has cleaved the state in two, and Collins shares the ticket with him. National Democrats, meanwhile, are backing Sara Gideon as her likely opponent, a battle-tested statehouse speaker who raised more than $1 million in the week after her launch. Projected to be the most expensive in Maine’s history, the race is of imperative importance for party leaders and the Senate institution itself. With scarce opportunities elsewhere, Senate Democrats essentially need Gideon to win to gain a minimum of three seats and the majority. In the Senate, a Collins loss would be a potentially fatal blow to the reeling center of the chamber.
Maryland – Maryland Horse Racing Commission Dominated by Industry Players. They Manage Cash Awards – and Win Them.
Baltimore Sun – Doug Donovan | Published: 8/22/2019
State law for three decades has allowed no more than four members of the nine-seat Maryland Racing Commission to “have a financial interest” in horse racing. But today, six commissioners have a financial stake in the sport and five of them own or breed racehorses that are eligible to receive cash bonuses from an incentive program established to bolster Maryland’s equine industry, The Baltimore Sun found. All five have participated in decisions determining the size of the awards despite a state ethics opinion that some believe prohibits regulators from voting on matters that could benefit their interests.
Massachusetts – Lobbyist Caught Up in State Police Case Is Known for Her Edge on Beacon Hill
Boston Globe – Matt Stout | Published: 8/22/2019
To federal authorities, Anne Lynch was a willing partner in a complex bribery scheme allegedly intended to benefit herself and the head of a State Police union. To the Massachusetts Movers Association, however, she was organized and thorough, and in the nearly 10 years she managed the trade group, she showed she would not be taken lightly. Her blunt approach made her a longtime, if not high-profile, player in various industry circles on Beacon Hill, where she evolved from managing the day-to-day business of trade associations to running a lobbying firm paid hundreds of thousands to push the interests of dozens of organizations. That included the powerful state troopers union, with whose president, authorities alleged, the work veered into something criminal.
Michigan – Candidate Who Wanted City as White ‘as Possible’ Withdraws from Council Race in Michigan
USA Today – Jackie Smith (Port Huron Times Herald) | Published: 8/26/2019
A city council candidate in Michigan whose racist comments have garnered nationwide attention has formally withdrawn from the race. Marysville Mayor Dan Damman said Jean Cramer submitted a letter withdrawing three days after he called for her to do so. During a city election forum, Cramer had been the first to respond to a question about attracting foreign-born residents to the community when she responded: “Keep Marysville a white community as much as possible. In a follow-up question from a reporter after the event, Cramer confirmed her beliefs. Her name will still appear on the November 5 ballot.
Michigan – Former State Rep. Todd Courser Pleads No Contest to Willful Neglect of Duty
MLive.com – Julie Mack | Published: 8/28/2019
Former Michigan Rep. Todd Courser pleaded no contest to willful neglect of duty by a public officer, a misdemeanor related to the 2015 scandal that forced him out of office. The misconduct involves soliciting a state employee to send out a false email. Soon after he was elected in 2014, Courser became the focus of a sex scandal involving his affair with then state Rep. Cindy Gamrat. To cover up the affair, he asked an aide to share an email containing outlandish allegations against him so rumors of his affair with Gamrat would pale in comparison and not be believed. A House investigation found the lawmakers “abused their offices” by directing staff to facilitate their affair, and they also blurred lines between official and political work.
Michigan – ‘There’s a Gray Area’: Campaign finance experts weigh in on Inman bribery case
Michigan Advance – Nick Manes | Published: 8/21/2019
To campaign finance watchdogs, the word “corruption” may be getting more difficult to legally define, but the case against indicted Michigan Rep. Larry Inman appears to be a near-textbook example. Richard Hall, a professor of public policy and political science at the University of Michigan, was blunt in his assessment of the text messages allegedly sent by Inman to union officials seeking campaign contributions in exchange for a vote against prevailing wage repeal. “As a student of campaign finance law, I don’t know how this case doesn’t meet the standard of causing the appearance of corruption,” Hall said. But Craig Mauger, executive director of the Michigan Campaign Finance Network, said the case against Inman gets into murky territory regarding the difference between campaign donations and bribes.
Montana – Group Files Challenge to Bullock’s Executive Order on ‘Dark Money’ and State Contracts
Helena Independent Record – Holly Michels | Published: 8/28/2019
The Illinois Opportunity Project asked a federal judge to strike down Montana’s nearly year-old policy that requires certain businesses seeking contracts with the state to disclose donors and spending on elections. Gov. Steve Bullock signed an executive order saying that to receive a state contract, an organization must report its political contributions. The order extends to so-called social welfare nonprofit organizations that, under campaign finance laws, do not have to disclose their donors. It applies to groups that have spent more than $2,500 over the past two-year cycle and is for contracts of more than $50,000 for goods or $25,000 for services.
New Hampshire – Trump’s Revival of Claim of Voting Fraud in New Hampshire Alarms Some State Republicans
Savannah Morning News – Amy Gardner (Washington Post) | Published: 8/29/2019
It was one of the first claims President-elect Donald Trump made about voter fraud in the wake of his 2016 victory: that his close loss in New Hampshire was propelled by thousands of illegal ballots cast by out-of-state voters. Trump’s revival of that false assertion as he ramps up his reelection campaign is now alarming some New Hampshire Republicans, who fear the president’s allegations could undermine confidence in next year’s election. Shortly after his inauguration, the president announced plans for a commission to investigate alleged voter fraud, which ended up disbanding barely a year later with no findings. With his reelection campaign now underway, Trump has returned to the topic.
New Jersey – Booker’s Mayoral Campaign Profited from Corrupt Newark Agency, Jailed Official Told
Newark Star Ledger – Karen Yi (NJ Advance Media) | Published: 8/28/2019
The former director of the agency that once managed Newark’s water told federal investigators in 2015 that she pressured vendors to make campaign contributions to then-Mayor Cory Booker and his political friends, new court records show. Linda Watkins-Brashear, who is currently serving an eight-year sentence for soliciting bribes in exchange for no-show contracts, said a Booker ally at the Newark Watershed Conservation and Development Corp. set a donation goal for vendors who usually bought $500 fundraising tickets without question. The records raise new questions about Booker’s record as mayor of Newark, a tenure that was a springboard to his successful U.S. Senate campaign and his current bid to win the Democratic Party nomination for the presidency. Booker has said he was unaware of the corruption that eventually led to the agency’s downfall.
New Jersey – Phil Murphy Says Fired Worker’s Social Media Posts Offensive, Declines Hiring Questions
Bergen Record – Dustin Racioppi | Published: 8/22/2019
After two days of silence since his administration fired an employee for his ant-Semitic social media posts, New Jersey Gov. Phil Murphy refused to say who hired Jeffrey Dye and whether he personally knew of Dye’s criminal history. Murphy may continue to face questions about Dye, just as he has about other people with questionable backgrounds who were hired by his administration. The governor and his top-ranking officials were unable to answer who had hired Al Alverez at the Schools Development Authority last year even though Alvarez had been accused of sexual assault, an allegation he denies and for which he was never charged. Murphy has also refused to say whether he knew about a top aide’s connection to a campaign finance scandal in Bermuda.
New York – A Lobbyist Gave $900,000 in Donations. Whose Money Is It?
EMN News – J. David Goodman (New York Times) | Published: 8/26/2019
Since 2014, David Rich has doled out more than 200 campaign contributions totaling over $900,000. Rich is not a billionaire; he is the in-house lobbyist for the Greater New York Hospital Association, the state’s most powerful hospital and health system trade association. His contributions go to Democratic and Republican candidates alike, and the donations have one thing in common: they seem to line up with the interests of his employer. Although the nonprofit hospital association is free to make political contributions without an annual cap, it gives nothing to individual candidates, essentially allowing Rich’s personal donations to speak for the organization. That setup seems structured to enhance the profile and influence of Rich, who is responsible for the association’s federal, state, and local advocacy.
North Carolina – ‘Horrific Abuse of Office’: Wanda Greene gets 7 years for wide-ranging corruption
Ashville Citizen Times – Jennifer Bowman, John Boyle, and Mackenzie Wicker | Published: 8/28/2019
Calling her the “architect” of a culture of corruption in Buncombe County, a federal judge sentenced former top administrator Wanda Greene to seven years in prison for wide-ranging corrupt activity that she committed while heading one of North Carolina’s fastest-growing counties. She was ordered to also pay a $100,000 fine. Greene admitted to using county-issued credit cards to make thousands of dollars of personal purchases. She also admitted to fraudulently claiming Buncombe County as her own business on tax forms and used money set aside for settling a civil rights lawsuit to instead buy valuable life insurance policies for herself and other employees. Prosecutors say their investigation into Buncombe County corruption is ongoing.
North Carolina – Two Candidates for Governor Can Take Unlimited Donations. One Can’t.
Durham Herald-Sun – Colin Campbell | Published: 8/27/2019
A provision in a North Carolina law is allowing wealthy donors to make unlimited contributions that are being funneled into the two leading campaigns for governor, finance records show. Gov. Roy Cooper and Lt. Gov. Dan Forest have benefited from Council of State affiliated party committees, which allows them to solicit and accept donations of any size in collaboration with other statewide elected office holders from their party. The money is then used to purchase core services such as advertising and consultants for the contenders’ main campaign organizations. It is an advantage that the third candidate in the race, Rep. Holly Grange, does not have because all of her supporters are limited to the $5,400 maximum contribution.
Oklahoma – A Senator’s Lake House vs. a Town Fighting Flooding
MSN – Sarah Mervosh (New York Times) | Published: 8/27/2019
For years, the town of Miami, Oklahoma, has fought a losing battle against a wealthy neighboring community near Grand Lake, a popular vacation spot, where high water makes for better boating but leaves little room for overflow when it rains. With heavy rains this year, the city of Miami and local Native American tribes say they were again left to pay the price when floodwater clogged upstream, damaging their homes, businesses, and ceremonial grounds. Now, the battle has escalated to the halls of Congress, after one of the lake’s residents, U.S. Sen. James Inhofe, got involved. After decades of debate, local leaders had pinned their hopes on a rare chance to ask a federal agency to help stop the flooding. But Inhofe, who is known to swim and fly planes around the lake, introduced legislation that would hamstring that agency.
Pennsylvania – Woman Who Accused Ex-Pa. Lawmaker of Rape ‘Credible,’ But No Charges Will Be Brought, DA Says
Philadelphia Inquirer – Angela Couloumbis and Brad Bumsted | Published: 8/26/2019
Dauphin County District Attorney Fran Chardo said he believed a woman who accused a onetime Pennsylvania legislator of rape was “credible,” but it was not in the public interest to prosecute. Chardo, who investigated the sexual assault allegations against former state Rep. Brian Ellis, said a grand jury recommended no criminal charges but suggested ways to strengthen the Legislature’s policies on investigating sexual misconduct. He said there were complications to the case, including the woman’s inability to recall what happened the night of the alleged assault – she has said she believes she was drugged, which resulted in memory loss – as well as Ellis’ decision to invoke his right not to testify before the grand jury. “This whole experience has changed me fundamentally as a human being,” the accuser said in an interview. “It’s not just what happened to me, it’s the whole process.”
Texas – Local City Councilman’s One-Finger Salute Stirs Controversy
KWTX – Chelsea Edwards | Published: 8/22/2019
Copperas Cove Councilmember Charlie Youngs was caught on camera sticking his middle finger up while colleague Kirby Lack was talking during a meeting. Youngs said he should not have made the obscene gesture, and said he was actually flipping off someone in the audience who threatened to hurt him last December. Lack said if Youngs does not resign by the next council meeting, he is taking the issue up with the Texas Ethics Commission.
Texas – Michael Quinn Sullivan’s Secret Audio of Texas House Speaker Blurs Line Between Journalism, Activism
Dallas News – Rebekah Allen | Published: 8/22/2019
For the past month, Michael Quinn Sullivan has been the narrator of this year’s most explosive Texas political firestorm. On his website the Texas Scorecard, Sullivan broke the news of a scandal involving state House Speaker Dennis Bonnen, which forced the lawmaker to publicly apologize for trashing his colleagues in a secret meeting. Sullivan boats that he is a watchdog, shedding light on politicians behaving badly. At the same time, he refuses to release his exclusive recording of his meeting with Bonnen. For years, Sullivan has been fighting to operate on this knife’s edge, one where he can freely continue his work influencing lawmakers and donating money to candidates, while labeling himself a member of the media.
Washington DC – The Little Firm That Got a Big Chunk of D.C.’s Lottery and Sports Gambling Contract Has No Employees
Washington Post – Steve Thompson | Published: 8/28/2019
The Greek company Intralot, which received a $215 million contract to bring sports gambling to the District of Columbia and to continue running its lottery, says more than half the work will go to a small local firm, a condition that helped the gaming giant win the no-bid contract. The firm, Veterans Services Corp., will “perform the ENTIRE subcontract with its own organization and resources,” according to a document signed by an Intralot executive. City law requires companies with large public contracts to subcontract some work to small local businesses to grow the local economy. But Veterans Services appears to have no employees, according to interviews and records. Until recently, the company’s website touted executives who did not work there.
West Virginia – Is It Unconstitutional to Sleep in Your Home? For a Governor, Perhaps
New York Times – Campbell Robertson | Published: 8/22/2019
For over a year in West Virginia courtrooms, and longer than that among lawmakers and pundits, a debate has been bubbling about where the state’s governor spends his nights. Not that the facts are in much dispute: Most everyone concurs that Gov. Jim Justice does not spend them in Charleston, the capital. The question is whether that arrangement is allowed. The debate returned to court for a hearing in a lawsuit brought by a Democratic lawmaker. The suit, which seeks a court order requiring the Republican governor to reside in Charleston, is based on a clause in the West Virginia Constitution, which declares that all state executive officials except for the attorney general shall “reside at the seat of government during their terms of office.” The argument about the governor’s residence is the tip of a much larger and broader debate over his tenure.
August 16, 2019 •
News You Can Use Digest – August 16, 2019
![News You Can Use Digest – August 16, 2019](https://stateandfed.com/wp-content/uploads/2019/05/NYCU-Logo-e1662491950752-1000x563.png)
National/Federal At Def Con, Hackers and Lawmakers Came Together to Examine Holes in Election Security Seattle Times – Taylor Telford (Washington Post) | Published: 8/12/2019 Hackers came had come to the DefCon computer security conference for a chance to probe voting […]
National/Federal
At Def Con, Hackers and Lawmakers Came Together to Examine Holes in Election Security
Seattle Times – Taylor Telford (Washington Post) | Published: 8/12/2019
Hackers came had come to the DefCon computer security conference for a chance to probe voting machines used in U.S. elections. Def Con’s Voting Village, and the conference at large, has become a destination not only for hackers but also for lawmakers and members of the intelligence community trying to understand the flaws in the election system that allowed Russian hackers to intervene in the 2016 election and that could be exploited again in 2020. Harri Hursti, one of the event’s organizers, said almost all of the machines at the conference were still used in elections despite having well-known vulnerabilities that have been more or less ignored by the companies that sell them.
Donor with Deep Ukraine Ties Lent $500,000 to Biden’s Brother
Politico – Ben Schreckinger | Published: 8/15/2018
A donor with deep ties to Ukraine loaned Joe Biden’s younger brother $500, 000 at the same time the then-vice president oversaw U.S. policy toward the country. The 2015 loan came as Biden’s brother faced financial difficulties related to his acquisition of a multimillion-dollar vacation home, nicknamed “the Biden Bungalow,” in South Florida. There is no indication that the loan influenced Joe Biden’s official actions, but it furthers a decades-long pattern by which relatives of the former vice president have leaned on his political allies for money and otherwise benefited financially from the Biden name.
Hickenlooper Drops Presidential Bid, Says He’ll Give ‘Serious Thought’ to a Senate Run
Roll Call – Griffin Connolly | Published: 8/15/2019
Former Colorado Gov. John Hickenlooper ended his campaign for the 2020 Democratic presidential nomination and said he will consider a run against U.S. Sen. Cory Gardner in a battleground state that Democrats need to win to take control of the chamber. Hickenlooper, who espouses a tempered brand of liberal politics, failed to gain much national traction in his presidential bid. By the time he dropped out, he was not on pace to reach the 130,000-donor benchmark to qualify for the next presidential debates. If he enters the Senate race, Hickenlooper will become the immediate front-runner in a Democratic primary field that already has 12 candidates.
How a Trump Ally Tested the Boundaries of Washington’s Influence Game
MSN – Kenneth Vogel (New York Times) | Published: 8/13/2019
Elliot Broidy, who after having been shunned by some Republicans in the wake of his 2009 guilty plea to giving nearly $1 million in illegal gifts to New York State officials to help land a $250 million investment from the state’s pension fund, had worked himself into Donald Trump’s inner circle as a top fundraiser for his 2016 campaign and inauguration. The stature he suddenly assumed when Trump won the election allowed him to position himself as a premier broker of influence and access to the new administration. In the process, his international business came to overlap with his efforts to influence government policy in ways that have now made him the subject of an intensifying federal investigation. Broidy’s ascent was also further evidence of how Trump came to rely on people whose backgrounds and activities would have raised red flags in other campaigns and administrations.
‘If You’re a Good Worker, Papers Don’t Matter’: How a Trump construction crew has relied on immigrants without legal status
MSN – Joshua Partlow and David Fahrenthold (Washington Post) | Published: 8/9/2019
For years, a roving crew of Latin American employees has worked at Trump Organization properties throughout the country. Their ranks included workers who entered the United States illegally, according to two former members of the crew. Another employee, still with the company, said that remains true today. The hiring practices are the latest example of the chasm between President Trump’s derisive rhetoric about immigrants and his company’s long-standing reliance on workers who cross the border illegally. It also raises questions about how fully the Trump Organization has followed through on its pledge to more carefully scrutinize the legal status of its workers, even as the administration launched a massive raid of undocumented immigrants, arresting about 680 people in Mississippi recently.
Interior Centralizes Ethics Reviews After Recent High-Profile Probes
The Hill – Rebecca Beitsch | Published: 8/14/2019
The Department of the Interior will be centralizing ethics reviews across its many agencies at its headquarters, following years of ethics investigations centered on many of the department’s top staff. Ethics officials at the Bureau of Land Management, the National Park Service, and others will report to ethics officials based at Interior’s headquarters rather than agency directors. Scott de le Vega, director of Interior’s Departmental Ethics Office, said the change was designed to ensure department’s 70,000 employees are getting consistent ethics advice regardless of which branch of the department they serve. But ethics officials who reviewed the plan criticized its broad focus on all agency employees rather than the high-level officials currently being investigated for ethical lapses.
Lobbyists Race to Cash in on Cannabis Boom
The Hill – Alex Gangitano | Published: 8/11/2019
Lobbying firms are taking advantage of the cannabis boom as a number of bills on the industry move through Congress and state Legislatures. As businesses look for help dealing with new legislative and regulatory challenges, K Street is rushing to capitalize, highlighted by the highest-grossing firm, Brownstein Hyatt Farber Schreck, launching a new “Cannabis and Industrial Hemp Industry Group.”
Trial of Former Obama White House Counsel Gregory Craig Highlights Crackdown on Foreign-Influence Industry
Washington Post – Spencer Hsu | Published: 8/12/2019
In charging one of Washington, D.C.’s most prominent attorneys, Gregory Craig, with lying in connection with his work for the Ukraine government at a leading law firm, the Justice Department signaled a new era for the Foreign Agents Registration Act, a once nearly dormant law that since 2017 has been invoked in more than 20 federal prosecutions aimed at combating foreign interference in U.S. politics. The charge against Craig stems from his alleged public relations work, rather than lobbying, while with the law firm Skadden, Arps, Slate, Meagher & Flom. He is accused not of failing to register as a foreign agent under the law, but with lying and withholding information from Justice officials seeking to determine whether he was required to register.
Trump’s Opponents Want to Name His Big Donors. His Supporters Say It’s Harassment.
MSN – Katie Rogers and Annie Karni (New York Times) | Published: 8/9/2019
Calling out the people who fund campaigns is not a new tactic in politics, but the question of how much should be publicly disclosed about those donors has been an issue that Republicans have repeatedly raised in recent years. While the U.S. Supreme Court ruled in the Citizens United case to uphold public disclosure, with Justice Antonin Scalia arguing later that without such revelation “democracy is doomed,” Republicans and wealthy allies have argued it results in donor harassment and has a chilling effect on free speech. The Supreme Court’s support for campaign finance disclosure laws has a built-in exemption for people who can show a realistic threat of harassment, and the renewed scrutiny on contributors to President Trump has also raised questions about what qualifies as donor harassment and who is entitled to privacy.
Canada
Canada – Trudeau Breached Conflict of Interest Act, Says Ethics Commissioner
Canada.com; Canadian Press – | Published: 8/14/2019
Canada’s ethics commissioner, Mario Dion, found Prime Minister Justin Trudeau violated the Conflict of Interest Act by improperly pressuring former Attorney General Jody Wilson-Raybould to halt the criminal prosecution of SNC-Lavalin. Dion said Trudeau’s attempts to influence Wilson-Raybould on the matter violated the law that prohibits public office holders from using their position to try to influence a decision that would improperly further the private interests of a third party. Dion found little doubt that SNC-Lavalin would have benefited had Trudeau succeeded in convincing Wilson-Raybould to overturn a decision by the director of public prosecutions, who had refused to invite the engineering giant to negotiate a remediation agreement in order to avoid a criminal prosecution on fraud charges related to contracts in Libya.
From the States and Municipalities
Alabama – Alabama Ethics Commission Says Airport Authority Employees Fall Under Ethics Law
AL.com – Mike Cason | Published: 8/7/2019
The Alabama Ethics Commission adopted an advisory opinion that employees of airport authorities are public employees and therefore subject to the state ethics law. Attorneys for the Birmingham and Huntsville airport authorities told the Ethics Commission that airport workers are not public employees because they are paid with funds generated by the airports, not with state, county, or municipal funds. The commission concluded otherwise. According to the opinion, the fees airport authorities collect from airlines, concessionaires, and other users of airport property are considered “state, county, or municipal funds” because the Legislature grants the authorities the ability to collect those fees for a specific public purpose.
Florida – Amid Misconduct Inquiry, NRA Lobbyist Marion Hammer Says She’s Not a Lobbyist
Florida Bulldog – Dan Christensen | Published: 8/15/2019
When is a registered lobbyist not a lobbyist in Florida? If powerful National Rifle Association (NRA) lobbyist Marion Hammer gets her way, it is when she says so. Hammer has been the NRA’s Florida lobbyist since at least2006, yet despite being paid handsomely – $270,000 last year alone – she has not filed with the Florida Senate any of the required quarterly compensation reports. Sen. Perry Thurston and Rep. Anna Eskamani filed formal complaints with the state ethics commission and Senate and House oversight authorities seeking investigations. Thurston has said Hammer “was indicating that she was a consultant and not a lobbyist” and therefore was not required to file lobbyist compensation reports.
Florida – Disney World Offers Florida Politicians a Sneak Peek at Star Wars Attraction, Spawning Ethics Questions
Orlando Sentinel – Steven Lemongello and Ryan Gillespie | Published: 8/15/2019
Walt Disney World invited state lawmakers and other officeholders to a “community leader preview” for its Star Wars: Galaxy’s Edge attraction. It is the hottest ticket in town not yet available to the general public. The event at Disney’s Hollywood Studios is not free, with invitees needing to pay $170, plus $25 parking, to attend the three-hour preview. State ethics laws are strict about what public officials and employees can accept, stating they cannot “solicit or accept anything of value to the recipient, including a gift, loan, reward, promise of future employment, favor, or service, based upon any understanding that [their] vote, official action, or judgment … would be influenced thereby.” Disney spent $28 million on state elections during the 2018 cycle and lawmakers have dealt with numerous issues related to Disney. County and city officials also deal with Disney on a regular basis.
Florida – Florida’s ‘Broken’ Legislature: ‘Session too quick, term limits too short and lawmakers paid too little’
Orlando Sentinel – Steven Lemongello | Published: 8/12/2019
Critics have asked why Florida’s Legislature operates the way it does. It has one of the nation’s shortest sessions despite being the third-largest state, and some of the strictest term limits. Special sessions are generally rare, and the result is what Rep. Carlos Guillermo Smith calls “a mad dash to sine die, with bills rushed through without being read and vetted by the public.” Many lawmakers and experts say the status quo is not going anywhere, either because they believe the process is working as intended or voters have no appetite for such reforms or for politicians adding years to their time in Tallahassee.
Florida – ‘No Probable Cause’ Matt Gaetz Violated Florida Bar Rules in Tweets at Michael Cohen
Tampa Bay Times – Steve Contorno | Published: 8/14/2019
U.S. Rep. Matt Gaetz will not face discipline from the Florida Bar for posting menacing messages on social media aimed at President Donald Trump’s lawyer and fixer Michael Cohen. Florida Bar spokesperson Francine Walker said the organization found “no probable cause” that Gaetz violated its rules for lawyers. The House ethics committee is also reviewing the incident.
Indiana – Inspector General OKs Casino Boss’s Private Flights for Gov. Eric Holcomb
Indianapolis Star – Tony Cook | Published: 8/8/2019
Indiana Gov. Eric Holcomb violated no ethics rules when a casino executive treated him to private jet flights last year. The flights in 2018 to Republican Governors Association events in Aspen, Colorado, and Scottsdale, Arizona, were together valued at more than $55,000. They gave Spectacle Entertainment Chief Executive Officer Rod Ratcliff and his business partners hours of exclusive access to Holcomb and his wife at a time when Ratcliff was seeking big changes to the state’s gaming laws that would benefit his company. Indiana Inspector General Lori Torres, who is appointed by Holcomb, determined the governor did not have to disclose the flights as a gift because they were designated as in-kind contributions to the Republican Governors Association, not to Holcomb.
Kentucky – Frankfort Resident Named Executive Director of Ky. Legislative Ethics Commission
State Journal; Staff – | Published: 8/13/2019
Laura Hromyak Hendrix was tapped to serve as executive director of the Kentucky Legislative Ethics Commission following the retirement of John Schaaf. Hendrix, who presently serves as the commission’s legal counsel, will assume the post September 1. the post Sept. 1. “Laura’s knowledge of the ethics law and her legal experience will allow the commission to continue its tradition of advising on and enforcing the ethics laws in a fair and nonpartisan manner,” Commission Chairperson Anthony Wilhoit said.
Kentucky – Jerry Lundergan’s Trial Over Illegal Contributions to Daughter’s Campaign Begins Tuesday
Louisville Courier-Journal – Tom Loftus | Published: 8/12/2019
Jerry Lundergan, a prominent player in Kentucky Democratic Party politics for 40 years, faces trial on charges he conspired to funnel illegal corporate contributions to the campaign of his daughter, Alison Lundergan Grimes, for the U.S. Senate in 2014. Lundergan is also accused of falsifying campaign finance records to conceal what his indictment itemizes were more than $206,000 in services his company provided to Grimes’ campaign. Jurors in the case may hear arguments involving the complexities of campaign finance laws, the practices of how campaigns report contributions and expenses, and the impact of how court rulings have shaken up the world of campaign finance.
Michigan – ‘An Easy Sell’: Inman texts point to PAC dominance in Michigan politics
Detroit News – Jonathan Oosting | Published: 8/8/2019
Michigan Rep. Larry Inman was planning to vote against a controversial initiative to repeal the state’s prevailing wage law when a top House Republican aide shared a dire prediction. Democratic voters would not “come to your side” and “you will shut down any incentive for the big donors to give” to your reelection campaign, Dan Pero, chief of staff to then-House Speaker Tom Leonard, told Inman in a text on the day of the vote. The text messages, disclosed by federal prosecutors as Inman heads toward trial for allegedly trying to sell his vote to a union group opposed to the repeal, highlight the outsized influence interest group donors have on Michigan politics and how PAC contributions can influence legislative votes.
Michigan – Millions Meant for Repairing Michigan Roads Go Back to Trucking Industry
Detroit Free Press – Paul Egan | Published: 8/11/2019
Money from Michigan’s vehicle registration fees – close to $8 million since 2012 – is paid in grants to the Center for Truck Safety, a nonprofit charged with educating truckers and the public. It is an arm of the Michigan Trucking Association, the industry’s lobbying group that has fought efforts to reduce the state’s highest-in-the-nation gross weight limits for trucks. The center shares Lansing office space and has also shared employees with the association. It uses some of the state money to pay the lobbying organization rent, services such as legal advice and personnel management, and payments on a loan. Nearly all of the truck safety center’s officers and directors are also directors of the trucking association and the state briefly cut off funding to the center after finding some state money was being used to pay expenses related not to the safety center, but to the trucking association.
Missouri – Ex-St. Louis County Executive Gets Nearly 4 Years in Prison
AP News – James Saltzer | Published: 8/9/2019
Former St. Louis County Executive Steve Stenger was sentenced to almost four years in prison and fined $250,000 for steering county business to a campaign donor in exchange for thousands of dollars in contributions. Stenger has also surrendered his law and accounting licenses and paid about $130,000 in restitution. Three others also pleaded guilty as part of the scheme – Stenger’s chief of staff, Bill Miller; businessperson John Rallo, who donated to Stenger’s campaign with the expectation his companies would get county contracts; and Sheila Sweeney, whom Stenger appointed as head of the county’s economic development agency.
Missouri – Missouri Police Chiefs Lobbyist Quits After Audit Blasts No-Bid Contract He Helped Secure
St. Louis Post-Dispatch – Jack Suntrup | Published: 8/12/2019
Sheldon Lineback, the longtime lobbyist for the Missouri Police Chiefs Association, canceled his registration with the Missouri Ethics Commission after a state audit criticized his role in a no-bid contract scheme that cost taxpayers $74,000. Auditor Nicole Galloway said former Department of Public Safety Director Drew Juden steered a $58,000 contract to the Missouri Police Chiefs Charitable Foundation, which is associated with the police chiefs association. The contract was for providing fingerprinting equipment to local police departments, a job the Missouri State Highway Patrol had done in the past at no additional cost to the state. The group was allowed to keep $1.25 million in state money, meant for purchasing the equipment, in its coffers for eight months, costing the state approximately $16,000 in interest revenue, and presumably benefiting the nonprofit. Juden is the former president of the Missouri Police Chiefs Association.
Montana – Fed Appeals Court Upholds Montana’s Landmark Campaign-Finance Disclosure Law
AP News – Matt Volz | Published: 8/12/2019
The Ninth U.S. Circuit Court of Appeals upheld a provision of Montana’s campaign finance law, ruling any group distributing material that merely mentions a candidate within 60 days of an election can be required to register with the state and disclose its spending and, in some cases, its donors. The state law requires any group to register and file disclosures once it spends $250 or more on ads or mailers referring to a candidate, political party, or ballot issue within 60 days of an election. That includes organizations registered as nonprofits under section 501(c)4 of the tax law that generally are not required to disclose their donors and spending. The National Association of Gun Rights argued unsuccessfully that the U.S. Constitution bars states from requiring that kind of disclosure for informational ads, such as the kind it proposed mailing.
New Hampshire – Bipartisan Bill to Create Redistricting Panel Vetoed by New Hampshire Governor
Governing – Kevin Landrigan (Manchester Union Leader) | Published: 8/12/2019
New Hampshire Gov. Chris Sununu vetoed a bill to create an independent commission proposed to come up with the best way to redraw legislative, congressional, and executive council districts after the 2020 elections. Sununu said the measure was well-intentioned but would have an “unaccountable” panel drawing these lines after they were picked by “party bosses.” This plan would allow lawmakers to vote on redistricting maps but would keep them out of the process of drawing them. Instead, maps would be created by a 15-member commission selected from a pool of applicants collected by the secretary of state.
New Hampshire – NH Attorney General: Contributions from limited partnerships, LLPs remain legal in state elections
WMUR – John DiStaso | Published: 8/9/2019
The New Hampshire attorney general’s office cleared the way for candidates for state offices to continue receiving contributions from corporate entities known as limited partnerships and limited liability partnerships. The office responded to a complaint filed against the Friends of Chris Sununu, the governor’s campaign operation, by Granite State Progress. It charged that three contributions to Sununu in 2017 violated a state law that includes donations by partnerships in a list of prohibited contributions. The group said Sununu’s campaign violated the law by accepting the money. Assistant Attorney General Nicholas Chong Yen said the office determined at least nine years ago that it could no longer enforce bans on contributions from partnerships and limited liability partnerships.
New Jersey – Two Unions Secretly Gave $3.6 Million to Phil Murphy’s Group During Millionaires Tax Push
Bergen Record – Ashley Balcerzak | Published: 8/11/2019
Two powerful unions donated a combined $3.6 million to New Jersey Gov. Phil Murphy’s secretive “dark money” nonprofit. The state’s largest teachers’ union, the New Jersey Education Association, wrote a $1 million check in April, a month after Murphy’s 2019 budget announcement the union called “progressive” and “people-focused.” That donation is on top of the $2.5 million the union gave to New Direction New Jersey in 2018. A local branch of the Service Employees International Union pitched in an additional $150,000 in June 2018. Officials with New Direction New Jersey had said it would report who was giving the group money. The nonprofit reversed its pledge later, citing a “toxic political environment,” and refused to name who bankrolled its push to pass Murphy’s priorities.
North Carolina – After El Paso, the ‘Send Her Back’ Chant Echoes to Some as a Prelude to Murder
MSN – Griff Witte (Washington Post) | Published: 8/13/2019
Samar Badwan, a Greenville, North Carolina resident, watched as 8,000 neighbors and fellow citizens jammed an arena to serenade President Trump with chants of “Send her back,” a response to Trump’s insistence that a Muslim, Somali American member of Congress should “go back” to the land of her birth. That visit, and that chant, continues to reverberate loudly in Greenville nearly a month later, particularly for those, like Badwan, who see themselves as targets of a campaign to whip up xenophobia and hate. After the El Paso shootings, in which 22 people were killed by a gunman who parroted Trump’s warnings about an “invasion” of immigrants, the words carry a particularly ominous resonance: as a prelude to murder.
North Dakota – Panel Picks Members of North Dakota Ethics Commission
Grand Forks Herald – John Hageman | Published: 8/8/2019
A committee charged with selecting members of North Dakota’s new state ethics commission finalized its picks, marking a major step toward implementing voter-approved rules against corruption. Their terms will begin September 1. Voters created the commission through a constitutional amendment last year. Despite criticisms of a Republican-backed implementation bill approved by state lawmakers this year, the commission will be able to write rules on transparency, corruption, elections, and lobbying as well as investigate allegations of wrongdoing.
North Dakota – Top North Dakota Officials Unfazed by State Money Awarded to Ethics Commissioner’s Tribal College
Grand Forks Herald – John Hageman | Published: 8/13/2019
North Dakota’s governor and Senate leaders were unfazed that one of their picks for the state’s new ethics commission leads a tribal college that has received more than $2 million in state grants in recent years, which one lawmaker argued is a conflict-of-interest. Cynthia Lindquist, president of the Cankdeska Cikana Community College, was selected as one of five members of the voter-approved ethics commission. Gov. Doug Burgum’s spokesperson said the governor’s office was aware the tribal college had received state dollars but noted it is primarily federally funded.
Oregon – The ACLU Helped Oregon Stay Awash in Campaign Cash. It’s Having Second Thoughts.
Portland Oregonian – Rob Davis | Published: 8/7/2019
The last time Oregon voters were asked whether campaign contributions should be limited, a prominent liberal group was among the most vocally opposed: The American Civil Liberties Union of Oregon. It had an impact. Voters in 2006 said no. Thirteen years later, with a similar measure on campaign donations heading to voters next year at the behest of the state Legislature and Gov. Kate Brown, the ACLU has dropped its absolute opposition to contribution limits. The shift eliminates one major obstacle to ending Oregon’s outlier status as one of five states with no caps on campaign money.
Pennsylvania – Philly’s New Voting Machine Contract in Jeopardy Because Vendor Failed to Disclose Use of Lobbyists, Campaign Contributions
Philadelphia Inquirer – Jonathan Lai | Published: 8/14/2019
Philadelphia City Solicitor Marcel Pratt notified the acting board of elections that Election Systems & Software (ES&S) violated the law by failing to disclose its use of lobbyists and the lobbyists’ campaign contributions to the two city commissioners on the board who selected the company for a contract to provide new voting machines. If the board decides to continue with the contract, ES&S will be liable for a $2.9 million fine, Pratt said, adding that it has agreed to pay the penalty if the contract proceeds. Using lobbyists is not illegal, and Pratt noted ES&S could have disclosed the lobbying and the campaign contributions without being disqualified from the bidding and selection process. The other finalist, Dominion Voting Systems, also did not disclose its use of a lobbyist.
Pennsylvania – Pittsburgh-Area Lobbyist Charged with Defrauding Clients, Forging Grant Documents
WTAE – Bob Mayo | Published: 8/12/2019
Lobbyist Joseph Kuklis, chief executive officer of Wellington Strategies, was charged with running a corrupt organization, theft by deception, forgery, and fraudulent business practices by the Pennsylvania attorney general’s office. The criminal complaint says investigators seized records of Wellington Strategies and allegedly found evidence of forgeries in the trash of Kuklis’s home. Kuklis allegedly falsely represented to nonprofits and businesses that he had obtained state grants for them and forged letters and documents to mislead clients who paid him for his work.
Tennessee – As Tennessee Makes Voter Registration More Difficult, Activists Consider What’s Next
Governing – Matt Vasilogambros (Stateline) | Published: 8/14/2019
Less than a year after a coalition of groups, led by the nonprofit Tennessee Black Voter Project, conducted a statewide voter registration drive that accumulated 91,000 applications, activists face a daunting obstacle: A new state law that seeks to curb mass voter registration efforts by imposing criminal and financial penalties for turning in error-filled forms or failing to register with the state and undergo training. The new Tennessee law has nonprofits and voting rights activists scrambling ahead of the 2020 presidential election, as they attempt to understand new regulations that could lead to thousands of dollars in fines and even jail time.
Tennessee – Lawmakers, Political Groups Owe State $1.9M in Fines for Violating Campaign Finance, Ethics Rules
The Tennessean – Joel Ebert | Published: 8/14/2019
Two Tennessee agencies that serve as watchdogs of elected officials, candidates, and political organizations are owed nearly $1.9 million. The average Tennessean could lose their home, be subject to liens, face collections agencies, or go to jail if tickets or taxes go unpaid. But that is not the case for the candidates, officials, and organizations that have been fined by the Registry of Election Finance and the Tennessee Ethics Commission. Instead, the state’s attorney general is tasked with collecting the two agencies’ unpaid fines.
Tennessee – State Election Registry to Formally Audit Bill Ketron’s Campaign Finance Reports
The Tennessean – Elaina Sauber | Published: 8/14/2019
The Tennessee Registry of Election Finance formally authorized an audit of former state Sen. Bill Ketron and his campaign finance committees. Those include his committee while seeking office as Rutherford County mayor, his state Senate committee, and his PAC. Ketron, who was elected Rutherford County mayor last year, faces $60,000 in unpaid civil penalties. The fines are primarily related to late filings of his campaign finance reports. Ketron and his campaign treasurer are responsible for ensuring campaign finance reports are filed on time. But his campaign treasurer and daughter, Kelsey Ketron, is facing her own financial troubles and possible criminal charges.
Texas – Texas Democrats Sue Over Secret Meeting Between House Speaker Dennis Bonnen, Empower Texans CEO
Dallas News – James Barragan | Published: 8/8/2019
The Texas Democratic Party is suing House Speaker Dennis Bonnen and conservative activist Michael Quinn Sullivan, alleging they created an unregistered PAC and violated other state election laws. The lawsuit stems from a June meeting Sullivan had with Bonnen and Republican Caucus Chairperson Dustin Burrows. In the meeting, Sullivan has said, Bonnen and Burrows offered to give writers at his website, Texas Scorecard, House media credentials in the next legislative session in exchange for Sullivan’s political group targeting 10 GOP incumbents in next year’s primary elections. Sullivan said he rebuffed the offer. But Democrats allege that meeting and any agreements reached in it show a coordinated effort “between political actors intended to influence the election or defeat of specific candidates” and amounts to an unregistered political committee as defined by state law.
Utah – Draper City Council Candidate Booted from Race After Showing Up One Minute Past Filing Deadline
Salt Lake Tribune – Alison Berg | Published: 8/12/2019
When Hubert Huh received a call August 6 from his state representative, Jeffrey Stenquist, reminding him of the 5 p.m. deadline for filing a campaign finance disclosure form, Huh, a Draper City Council candidate, sped as fast as he could to City Hall with his form. Arriving at 5:01 p.m., the city recorder told him he was too late and would be disqualified from the race. The deadline was 5 p.m. Though Huh was only a minute past deadline, Draper spokesperson Maridene Alexander said the city follows the state code strictly, which requires a finance disclosure form be turned into the clerk or recorder’s office by 5 p.m. the day it is due.
Washington – Seattle Politics Without Corporate Money? Council Member Fires Off Long-Shot Proposal
Crosscut – David Kroman | Published: 8/14/2019
In an effort sure to face a bumpy legal road, Seattle City Councilperson Lorena González has drafted legislation aimed at stemming the growing influence of big money donors in municipal elections. The bill would limit how much donors could give to PACs while placing stricter regulations on how foreign money, including donations from U.S. companies with foreign owners, shapes city politics. It would also require PACs to disclose how their money is spent. The three proposals in González’s package share the goal of curbing the effect of money on local elections, a so-far quixotic effort to find gaps in the U.S. Supreme Court’s Citizens United decision, which is credited with opening the floodgates on corporate contributions to elections.
Washington DC – D.C. Lawmaker Jack Evans Fined $20,000 in Ethics Case Involving Outside Work
Washington Post – Fenit Nirappil | Published: 8/8/2019
District of Columbia Councilperson Jack Evans was fined $20,000 by the city’s ethics agency for using government resources and touting his influence as an elected official while soliciting employment from local law firms. The settlement is the latest fallout for the city’s longest-serving lawmaker who has been embroiled in an ethics scandal. Emails that Evans sent from his council office showed he tried to land jobs at law firms in 2015 and 2018. In business proposals, he highlighted an ability to attract private clients as a lawmaker and as board chair of the regional transit agency. The Board of Ethics and Government Accountability determined there was “substantial evidence” Evans’ contact with the law firms violated rules that prohibit the use of government resources for personal reasons and using the prestige of office for private gain.
West Virginia – Welcome to the Greenbrier, the Governor-Owned Luxury Resort Filled with Conflicts of Interest
ProPublica – Ken Ward Jr. (Charleston Gazette-Mail) | Published: 8/15/2019
Ethics officials have said West Virginia laws never contemplated someone like Gov. Jim Justice. With his decision to hold his inauguration ball at The Greenbrier, a palatial resort the governor owns, Justice ushered in a new era of politics in West Virginia, one in which it is hard to tell where the governor’s business interests end, and state government begins. All told, more than $1 million, half of the inaugural fund, went to Justice’s Greenbrier Hotel Corp. The Greenbrier represents only a slice of Justice’s holdings, estimated to be worth as much as $1.5 billion. But the iconic resort’s outsized role in West Virginia politics has made it an unparalleled ethical thicket for the governor.
Wyoming – Wyoming Is Committed to a ‘Citizen Legislature.’ But the Format Can Limit Who Is Able to Participate.
Casper Star-Tribune – Nick Reynolds | Published: 8/12/2019
Wyoming’s citizen Legislature has always been a point of pride, harkening back to a simpler time in the state’s history where government was radically by the people, for the people. According to the National Conference of State Legislatures, just 4 states – Wyoming, Montana, and the Dakotas – boast what can be considered “citizen Legislatures,” keeping the session limits short, the pay low, and legislative staff limited in order to shut out the trappings of big government. For opponents of a per diem raise for lawmakers, this is something worth preserving, both in maintaining the state’s culture of conservatism and by being fiscally prudent. But some believe the concept of the Legislature could use some updating, particularly as its members look less and less like the state they represent.
August 15, 2019 •
Thursday’s LobbyComply News Roundup
![Thursday’s LobbyComply News Roundup](https://stateandfed.com/wp-content/uploads/2018/05/LCNR-scaled-e1662492841233-1000x563.jpg)
Campaign Finance Washington: “Seattle Politics Without Corporate Money? Council Member Fires Off Long-Shot Proposal” by David Kroman for Crosscut Ethics Canada: “Trudeau Breached Conflict of Interest Act, Says Ethics Commissioner” by for Canada.com; Canadian Press Kentucky: “Frankfort Resident Named […]
Campaign Finance
Washington: “Seattle Politics Without Corporate Money? Council Member Fires Off Long-Shot Proposal” by David Kroman for Crosscut
Ethics
Canada: “Trudeau Breached Conflict of Interest Act, Says Ethics Commissioner” by for Canada.com; Canadian Press
Kentucky: “Frankfort Resident Named Executive Director of Ky. Legislative Ethics Commission” by for State Journal; Staff
North Carolina: “After El Paso, the ‘Send Her Back’ Chant Echoes to Some as a Prelude to Murder” by Griff Witte (Washington Post) for MSN
North Dakota: “Top North Dakota Officials Unfazed by State Money Awarded to Ethics Commissioner’s Tribal College” by John Hageman for Grand Forks Herald
Tennessee: “Lawmakers, Political Groups Owe State $1.9M in Fines for Violating Campaign Finance, Ethics Rules” by Joel Ebert for The Tennessean
Lobbying
National: “How a Trump Ally Tested the Boundaries of Washington’s Influence Game” by Kenneth Vogel (New York Times) for MSN
Procurement
Pennsylvania: “Philly’s New Voting Machine Contract in Jeopardy Because Vendor Failed to Disclose Use of Lobbyists, Campaign Contributions” by Jonathan Lai for Philadelphia Inquirer
July 23, 2019 •
Annapolis Mayor Introduces Procurement Legislation
![Annapolis Mayor Introduces Procurement Legislation](https://stateandfed.com/wp-content/uploads/2019/05/Annapolis-City-Hall-1000x563.jpg)
Annapolis City Hall via Preserve Maryland
Mayor Gavin Buckley introduced a bill at a recent city council meeting outlining how the city should purchase items and services. A draft of the legislation proposes a procurement process that would create an efficient, cost-effective, and equitable system of […]
Mayor Gavin Buckley introduced a bill at a recent city council meeting outlining how the city should purchase items and services.
A draft of the legislation proposes a procurement process that would create an efficient, cost-effective, and equitable system of public purchasing by the city.
Annapolis currently does not have a set system for procurement.
If passed, the bill would be added to the city code to create a more standardized procurement system.
July 23, 2019 •
Maryland Launches New Electronic Procurement System
![Maryland Launches New Electronic Procurement System](https://stateandfed.com/wp-content/uploads/2019/07/emma-resize-1-1000x400.jpeg)
The Maryland Department of General Services launched the state’s new electronic procurement system, eMaryland Marketplace Advantage (eMMA). The eMMA system is Maryland’s new online platform used to connect the vendor community with contracting opportunities from state, county, and local government […]
The Maryland Department of General Services launched the state’s new electronic procurement system, eMaryland Marketplace Advantage (eMMA).
The eMMA system is Maryland’s new online platform used to connect the vendor community with contracting opportunities from state, county, and local government entities.
Registered vendors will receive notices of bid opportunities, submit bid responses, and obtain bid results online.
Accounts from the previous system will not be transferred to eMMA.
Vendors will have to register with the new system.
The state is currently training over 825 procurement professionals to help during the transition and provide training to users.
July 15, 2019 •
Missouri Gov. Signs Procurement Bill Amending Bid Solicitation Process
![Missouri Gov. Signs Procurement Bill Amending Bid Solicitation Process](https://stateandfed.com/wp-content/uploads/2019/07/Mike-Parson-1000x563.jpg)
Missouri Gov. Mike Parson
Gov. Mike Parson signed procurement lobbying legislation on July 10, bringing changes to the state’s bid solicitation process. House Bill 1088 provides that solicitations and subsequent purchases must be publicly advertised only if a contract is worth more than $100,000. […]
Gov. Mike Parson signed procurement lobbying legislation on July 10, bringing changes to the state’s bid solicitation process.
House Bill 1088 provides that solicitations and subsequent purchases must be publicly advertised only if a contract is worth more than $100,000. The previous threshold was $25,000.
The bill further provides that all purchases in excess of $10,000 must be based on competitive bids. The previous threshold was $3,000.
Additionally, information technology purchases estimated not to exceed $150,000 may be completed under an informal process. The previous threshold was $75,000.
The bill becomes effective on August 28, 2019.
July 5, 2019 •
News You Can Use Digest – July 5, 2019
![News You Can Use Digest – July 5, 2019](https://stateandfed.com/wp-content/uploads/2019/05/NYCU-Logo-e1662491950752-1000x563.png)
National/Federal 2020 Census Will Not Include Citizenship Question, DOJ Confirms Philadelphia Inquirer – Ann Marimow, Matt Zapotosky, and Tara Bahrampour (Washington Post) | Published: 7/2/2019 In a defeat for President Trump, his administration ended its effort to add a citizenship question […]
National/Federal
2020 Census Will Not Include Citizenship Question, DOJ Confirms
Philadelphia Inquirer – Ann Marimow, Matt Zapotosky, and Tara Bahrampour (Washington Post) | Published: 7/2/2019
In a defeat for President Trump, his administration ended its effort to add a citizenship question to the 2020 U.S. census, saying it will begin printing forms that do not include the contentious query. The move comes days after the U.S. Supreme Court the rationale for the question as “contrived.” Officials determined there would not be enough time to continue the legal battle and meet the printing deadlines for the census questionnaire. Critics of the question, including some at the Census Bureau, said it could cause an undercount of millions of people in immigrant communities who would be afraid to return the form, leading to an inaccurate number that could skew representation and apportionment in favor of Republican areas.
Ethics Panel Launches Gaetz Investigation Over Cohen Tweet
Politico – Kyle Cheney | Published: 6/29/2019
The House Committee on Ethics announced it is investigating U.S. Rep. Matt Gaetz for a February tweet in which he threatened to release embarrassing personal information about President Trump’s former lawyer, Michael Cohen. The committee said it has opened a formal inquiry into Gaetz’s comment based on a complaint from a fellow lawmaker, who is not identified. According to the ethics panel, Gaetz disregarded an initial review of the complaint, an extraordinary rebuke to his colleagues. Gaetz’s initial attack on Cohen came a day before the former Trump confidant was slated to testify to the House Oversight Committee, a high-profile hearing in which Cohen ultimately slammed the president as dishonest and provided evidence he paid hush money to women ahead of the 2016 election.
Gregory Craig Preps for Trial Tightrope in Foreign Agent Case
Law.com – Andrew Strickler | Published: 7/1/2019
Attorney Gregory Craig was charged with misleading Department of Justice officials six years ago about a Skadden Arps Slate Meagher & Flom report commissioned by Paul Manafort and public-relations activities that would have triggered a duty for Skadden to publicly register under the Foreign Agents Registration Act (FARA). Craig has vehemently denied lying to FARA officials or helping spin the report to influence a U.S. audience. He has also argued that neither of the government’s charged statutes imposed a clear obligation on him to reveal to FARA officials all the information they might have wanted to know.
House Democrats Sue for Trump’s Tax Returns
Politico – Brian Faler | Published: 7/2/2019
House Democrats sued for President Trump’s tax returns, marking the beginning of a high-stakes legal fight over his efforts to keep them secret. Democrats are seeking six years’ worth of returns under a 1924 law allowing the leaders of Congress’ tax committees to examine anyone’s confidential tax information. Democrats hope the documents will answer a host of questions about Trump’s finances. The president has defied a decades-old tradition of presidents voluntarily releasing their returns, and his administration is fighting the effort to force his hand, arguing Democrats do not have a legitimate reason for seeking the information. While the fight over Trump’s taxes could be lengthy, with the administration likely to try to drag out the proceedings beyond next year’s elections, some see signs the courts are trying to move quickly on the oversight challenges.
It’s a Question No One Says They Want to Ask. But the Women Running for President Keep Hearing It.
New York Times – Lisa Lerer | Published: 7/2/2019
Three years after nominating the first woman in history to head a presidential ticket, nearly six months after a wave of energized women swept Democrats into power in the U.S. House, and as a record number of women run for president, the party finds itself grappling with the strangely enduring question of the electability of women, and with the challenge for the candidates of refuting it before it becomes a self-fulfilling prophecy. Privately, Democratic strategists, candidates, and officials say they have been alarmed by how deeply doubts about female electability have taken hold. A portion of the party’s voters suggest they are eager to see a woman on the ticket but fear that putting her in the top slot could cost them the White House again.
Journalists, Pundits and Retired Politicians Put on a Show for Lobbyists
MAPLight.org – Andrew Perez, Abigail Luke, and Tom Zelina | Published: 7/2/2019
The practice of paying high-profile Washington, D.C. insiders to speak at industry trade shows and conferences, known as “buckraking,” is not a recent development. But as the rules on political participation by nonprofits and trade associations have been loosened, it has become common for lobbying groups to pay large sums to influential insiders who drive news coverage and public opinion. Guidelines on paid speeches vary widely across the industry, although the Society of Professional Journalists calls for reporters and editors to “refuse gifts, favors, fees, free travel and special treatment, and avoid political and other outside activities that may compromise integrity or impartiality, or may damage credibility.”
NRA Meltdown Has Trump Campaign Sweating
Politico – Alex Isenstadt | Published: 7/3/2019
The National Rifle Association (NRA) aired an avalanche of television ads and pushed its five million-plus members to the polls for Donald Trump in 2016, propelling him in the Rust Belt states that delivered him the presidency. Now, the gun rights group is in total meltdown and senior Republicans and Trump campaign officials are alarmed. The turmoil is fueling fears that the NRA will be diminished heading into the election, leaving the Republican Party with a gaping hole in its political machinery. With the Chamber of Commerce and Koch political network withdrawing from their once-dominant roles in electing conservatives, Republicans worry that three groups that have long formed the core of their electoral infrastructure will be effectively on the sidelines.
Rep. Duncan Hunter’s Affairs with Congressional Staff Raise Sexual Harassment Concerns
Roll Call – Emily Kopp | Published: 6/28/2019
Republican Party leaders have demurred on whether U.S. Rep. Duncan Hunter should resign over revelations he pursued relationships with two congressional staffers, including one of his own aides. But that does not mean allegations that Hunter had “intimate relationships,” as U.S. attorneys described them in a recent court filing, with two staffers will not trigger consequences on Capitol Hill. The relationships were revealed in a motion filed in connection with Hunter’s upcoming trial on charges alleging he misused campaign funds for personal expenses. Hunter dipped into campaign coffers to pay for drinks out, couples’ trips, and Uber rides from the women’s homes to his congressional office, prosecutors say. The relationships predate a law that amended the House’s code of conduct to prohibit members of Congress from dating subordinates. But Hunter’s behavior still raises ethical concerns, experts say.
‘The Enigma of the Entire Mueller Probe’: Focus on origins of Russian investigation puts spotlight on Maltese professor
MSN – Rosalind Helderman, Shane Harris, and Ellen Nakashima (Washington Post) | Published: 6/30/2019
A conversation between Maltese-born academic Joseph Mifsud and Trump campaign aide George Papadopoulos, eventually relayed by an Australian diplomat to U.S. government officials, was cited by special counsel Robert Mueller as the event that set in motion the FBI probe into ties between the Trump campaign and Russia. With Attorney General William Barr’s review of the counterintelligence investigation underway, the origins of the inquiry itself are now in the spotlight and with them, the role of Mifsud. Some of President Trump’s allies and advisers have been floating a provocative theory: that Mifsud was a Western intelligence plant, citing exaggerated and at times distorted details about his life. Such a notion runs counter to the description of Mifsud in the Mueller report, which states he “had connections to Russia” and “maintained various Russian contacts.”
The Nationwide Battle Over Gerrymandering Is Far from Over
Politico – Steven Shepard and Scott Bland | Published: 6/27/2019
The U.S. Supreme Court’s ruling that federal courts have no business deciding how much partisan gerrymandering is too much did not end the fight over how politicians draw political lines, it just moved the battlefield. The justices accelerated the race between the two parties to tilt the system to their advantage by electing as many governors and legislators as possible or, in some states, getting voters to support ballot measures to take the redistricting process out of politicians’ hands by 2021. While the justices closed off filing legal challenges to gerrymandering in federal courts, they explicitly said those lawsuits are still fair game in state courts. It was there that Democratic-aligned plaintiffs successfully demolished Pennsylvania’s Republican-drawn congressional map before the 2018 elections.
Trump Advisers Pursue Democratic Drug-Price Ideas as Campaign Looms
Washington Post – Yasmeen Abutaleb, Josh Dawsey, and Laurie McGinley | Published: 7/2/2019
As President Trump presses to make health care a central plank of his 2020 reelection bid, he is frustrated with those he thinks are thwarting his ability to deliver on a major campaign promise: lowering drug prices. That has included Health and Human Services Secretary Alex Azar, a former drug executive who until very recently pushed back on proposals to import lower-cost drugs from Canada and negotiate drug prices in Medicare. Now, though, under pressure to deliver campaign talking points, Azar has reversed his long-standing opposition to ideas traditionally espoused by Democrats and reviled by most Republicans and the drug industry.
Trump Facebook Ads Use Models to Portray Actual Supporters
AP News – Robert Condon | Published: 7/2/2019
A series of Facebook video ads for President Trump’s re-election campaign shows what appears to be a young woman strolling on a beach in Florida, a Hispanic man on a city street in Texas, and a bearded hipster in a coffee shop in Washington, D.C., all making glowing, voice-over endorsements of the president. But the people in the videos that ran in the past few months are all actually models in stock video footage produced far from the U.S. in France, Brazil, and Turkey, and available to anyone online for a fee. Though the 20-second videos include tiny disclaimers that say, “actual testimonial, actor portrayal,” they raise the question why a campaign that can fill arenas with supporters would have to buy stock footage of models.
Twitter Adds Labels for Tweets That Break Its Rules – a Move with Potentially Stark Implications for Trump’s Account
Boston Globe – Elizabeth Gwoskin and Tony Romm (Washington Post) | Published: 6/27/2019
Political figures who use Twitter to threaten or abuse others could find their tweets slapped with warning labels. The new policy comes amid complaints that President Trump has gotten a free pass from Twitter to post hateful messages and attack his enemies in ways they say could lead to violence. From now on, a tweet that Twitter deems to involve matters of public interest, but which violates the service’s rules, will be obscured by a warning explaining the violation. Users will have to tap through the warning to see the underlying message, but the tweet will not be removed. Twitter said the policy applies to all government officials, candidates and similar public figures with more than 100,000 followers. In addition to applying the label, Twitter won’t use its algorithms to “elevate” or otherwise promote such tweets.
Ukraine Role Focuses New Attention on Giuliani’s Foreign Work
New York Times – Kenneth Vogel | Published: 6/30/2019
Pavel Fuks, a wealthy Ukrainian-Russian developer looking for ways to attract more investment from the U.S. to his hometown of Kharkiv, Ukraine, enlisted an especially well-connected American to help him: Rudolph Giuliani. Fuks hired Giuliani, who in 2018 would become the president’s personal lawyer, under a one-year deal to help improve Kharkiv’s emergency services and bolster its image as a destination for investment. Fuks’s description of Giuliani as a lobbyist further highlighted a controversy over what some say is a pattern by Giuliani of providing influence with the Trump administration. Democrats have asked whether Giuliani’s role working in a number of foreign countries fits the legal definition of lobbying and requires him to register as a foreign agent, something Giuliani has not done.
Welcome to 2020, the Era of Crowdfunded Presidential Debates
Washington Post – Michelle Ye Hee Lee | Published: 7/2/2019
Democrats this year are giving not only to help their preferred candidates, but also to offer a small token of appreciation for a clever policy idea for someone else, or to keep an underdog in the game. Welcome to the 2020 primaries, an era of crowdfunded presidential debates. Campaign donations and debates have become intermingled this year, with the Democratic National Committee for the first time requiring that candidates reach a certain number of donors to qualify for primary debates. That has created an intense focus on fundraising, with candidates asking supporters for money specifically to help them qualify for the widely watched forums. More than 100 debate viewers from across the country responded to a call-out by The Washington Post on Instagram, asking them about the moments that resonated with them and drove them to give money.
From the States and Municipalities
Arizona – A GOP Governor Wants to Cancel a Nike Contract after Flag-Shoe Flap, but the City It’s Headed for Isn’t Backing Down
Greenwich Time – Eli Rosenberg and Michael Brice-Saddler (Washington Post) | Published: 7/3/2019
Nike stopped production of shoes that featured the image of an American flag after former NFL quarterback Colin Kaepernick reportedly lodged a complaint. Kaepernick, who is a face of the company, said he found the Betsy Ross flag designed in 1777 offensive because of its connection to the era of slavery. Arizona Gov. Doug Ducey said he ordered state authorities to revoke an incentive package it offered Nike to open a factory in the state. But Goodyear Mayor Georgia Lord said the city would honor the agreement. Boycotts by companies and independent contractors over governmental policies that cross what some see as lines on race or gender have become a common. Ducey’s decision inverted the calculation – in this case, a state would monetarily punish a private company for a political decision it made.
Connecticut – They Love Public Financing. The Oversight, Not as Much.
Connecticut Mirror – Mark Pazniokas | Published: 7/3/2019
Watchdogs are concerned the Connecticut General Assembly’s relationship with the State Elections Enforcement Commission (SEEC) could undermine campaign finance reforms adopted in 2005. Near the end of the 2019 session, a deal by legislative leaders sped an elections bill that contained a calculated slap at the SEEC through the Senate in little more than a minute. It would have set term limits on the agency’s director, treating elections enforcement differently than the state’s other watchdogs. The measure marked the fifth time since 2011 the Legislature has at least attempted to curb the powers of the SEEC or loosen campaign finance rules, reflecting a longstanding antipathy towards the agency that not only enforce the laws, but bankrolls campaigns.
Missouri – Meet the Consultant Who Got Stenger Elected, and Why He’s Still ‘Proud’ He Won
St. Louis Post-Dispatch – Jacob Barker | Published: 6/30/2019
Two days after Steve Stenger pleaded guilty to federal “pay-to-play” charges, Democratic consultant Michael Kelley was on television, sounding as though he barely knew the former St. Louis County executive. “… An absolutely ridiculous thing for Steve Stenger to have been involved in,” Kelly said. Left unsaid was the fact that Stenger’s campaign had paid Kelley’s Show Me Victories – the political communications arm of the Kelley Group – $550,000 during his two successful election campaigns. Nor did Kelley mention that Stenger, as county executive, had been a regular at the Kelley Group’s offices, visiting almost weekly for meetings in 2018. In addition to the Stenger campaign, Show Me Victories has worked on nearly every major local ballot proposition in the last few years.
New Jersey – U.S. Supreme Court to Hear Bridgegate Appeal. Stunning Move Keeps Alive Case That Dogged Christie.
Newark Star Ledger – Ted Sherman (NJ Advance Media) | Published: 6/28/2019
Bridget Anne Kelly, the one-time aide to former New Jersey Gov. Chris Christie whose “time for some traffic problems” email became a key focal point of the Bridgegate corruption scandal, will get a final chance to argue she was wrongfully convicted. The U.S. Supreme Court agreed to hear Kelly’s appeal – weeks before she is due to report to federal prison – reviving a case that many had thought was finally over. The decision to review her conviction could raise new questions about the ability of the government to take on major political prosecutions, by a court that has taken aim at a number of high-profile corruption cases in recent years. Lawyers for Kelly had argued that federal prosecutors used criminal fraud statutes typically used in cases of personal gain, such as bribery, to instead criminalize routine political behavior.
North Dakota – Legislator as Landlord: Financial disclosures don’t highlight state agency leases with North Dakota elected officials
Jamestown Sun – John Hageman | Published: 6/30/2019
Several current or former elected state officials in North Dakota have an interest in property rented by state agencies, but those financial relationships were not readily apparent on campaign disclosure forms. The officials defended the leases, which are not awarded through a formal competitive bidding process, as a byproduct of North Dakota’s citizen-run Legislature and said they do not affect their decision-making. Dina Butcher, who led the effort to pass last year’s ballot measure etching new ethics rules into the state constitution, did not directly criticize the state officials because the arrangements are not illegal, and she was not aware of any leases being unfairly awarded. But she said the ethics commission created by Measure 1 may take up the issue once it is formed.
Oregon – Campaign Finance Limits on Track to Oregon Ballot
Oregon Public Broadcasting – Jeff Mapes | Published: 7/1/2019
Voters in Oregon will decide next November whether the state constitution should allow limits on campaign donations. Legislative approval of the historic campaign finance measure comes three months after The Portland Oregonian revealed how the outsize influence of corporate campaign money helped limit environmental protections in a state that once aimed to be an environmental pioneer. Per capita, corporate interests have given more money to the average Oregon lawmaker than in any state in the country, the investigation found. Lawmakers also passed House Bill 2716, under which some large funders will need to be disclosed in some advertisements.
Texas – How a Longtime Aide to Texas Gov. Greg Abbott Became a Top Lobbyist
Austin American-Statesman – Asher Price | Published: 6/27/2019
Daniel Hodge, a former aide to Texas Gov. Greg Abbott who is now a lobbyist, earned as much as $3.7 million this year representing more than two dozen clients at the state Legislature. It illuminates how someone like Hodge can, within a couple of years of hanging a shingle, become one of the highest-paid lobbyists in the state. Longtime lobbyists say the transition is a natural one, using knowledge learned and relationships built in the public sector for effective advocacy outside it. But watchdogs have pointed to the close link between the Legislature and those who peddle access to government funds as an erosion of public trust. In recent years, lawmakers have tried, with limited success, to expand restrictions on the path from state government to lobbying.
Wyoming – Wyoming Tribe Funded Effort to Kill Gambling Regulations; Sides Dispute Who Created the Group
Casper Star-Tribune – Nick Reynolds | Published: 7/1/2019
A casino managed by the Northern Arapaho tribe gave thousands of dollars to a secretive organization trying to defeat regulated gambling in Wyoming, records show, but tribal officials say they were duped by their lobbyist who set up the group. The tribe fired the lobbyist, Mark Howell recently. Howell, and a minority of tribal leadership, denied the officials’ version of events, saying they ordered the group’s creation. The Wind River Hotel and Casino put more than $80,000 into the Wyoming Public Policy Center, which formed prior to the 2019 legislative session. The group has spent more than $60,000 in lobbying expenses and engaged in a sophisticated advertising campaign. Little had been known about the group’s activities prior to the filing. Hidden behind a wall of anonymous filings in multiple jurisdictions, the group had been afforded a level of secrecy unavailable in states with stricter corporate filing laws.
July 4, 2019 •
Thursday’s LobbyComply News Roundup
![Thursday’s LobbyComply News Roundup](https://stateandfed.com/wp-content/uploads/2018/05/LCNR-scaled-e1662492841233-1000x563.jpg)
Campaign Finance Connecticut: “They Love Public Financing. The Oversight, Not as Much.” by Mark Pazniokas for Connecticut Mirror Elections National: “It’s a Question No One Says They Want to Ask. But the Women Running for President Keep Hearing It.” by […]
Campaign Finance
Connecticut: “They Love Public Financing. The Oversight, Not as Much.” by Mark Pazniokas for Connecticut Mirror
Elections
National: “It’s a Question No One Says They Want to Ask. But the Women Running for President Keep Hearing It.” by Lisa Lerer for New York Times
National: “NRA Meltdown Has Trump Campaign Sweating” by Alex Isenstadt for Politico
National: “Trump Facebook Ads Use Models to Portray Actual Supporters” by Robert Condon for AP News
Ethics
National: “2020 Census Will Not Include Citizenship Question, DOJ Confirms” by Ann Marimow, Matt Zapotosky, and Tara Bahrampour (Washington Post) for Philadelphia Inquirer
National: “House Democrats Sue for Trump’s Tax Returns” by Brian Faler for Politico
Lobbying
California: “‘Big Soda’ Reaffirms Its Clout in California, Blocks 5 of 5 Bills on Sugary Beverages” by Patrick McGreevy for Los Angeles Times
Procurement
Arizona: “A GOP Governor Wants to Cancel a Nike Contract after Flag-Shoe Flap, but the City It’s Headed for Isn’t Backing Down” by Eli Rosenberg and Michael Brice-Saddler (Washington Post) for Greenwich Time
June 28, 2019 •
News You Can Use Digest – June 28, 2019
![News You Can Use Digest – June 28, 2019](https://stateandfed.com/wp-content/uploads/2019/05/NYCU-Logo-e1662491950752-1000x563.png)
National/Federal Beltway ‘Inundated’ with Fundraisers as Deadline Nears Roll Call – Kate Ackley | Published: 6/25/2019 The subject line of a recent email solicitation from U.S. Rep. Elissa Slotkin’s campaign captures the upcoming fundraising scene in Washington perfectly: “You’re about to […]
National/Federal
Beltway ‘Inundated’ with Fundraisers as Deadline Nears
Roll Call – Kate Ackley | Published: 6/25/2019
The subject line of a recent email solicitation from U.S. Rep. Elissa Slotkin’s campaign captures the upcoming fundraising scene in Washington perfectly: “You’re about to be inundated. Sorry in advance.” With the second quarter fundraising deadline looming, lawmakers are sounding the alarms for their donors – making pleas to far-flung, small-dollar givers online and reliable contributors from K Street’s lobbying community to help them boost their numbers. Even though lawmakers and their challengers still have 17 months before the 2020 elections, the second quarter of this year can be pivotal for incumbents looking to scare away potential opponents in primaries or even the general election with impressive cash-in-hand totals.
Biden’s Ties to Segregationist Senator Spark Campaign Tension
Boston Globe – Matt Viser and Annie Linskey (Washington Post) | Published: 6/20/2019
When Joe Biden was a freshman in the U.S. Senate, he reached out to an older colleague for help on one of his early legislative proposals: the courts were ordering racially segregated school districts to bus children to create more integrated classrooms, a practice Biden opposed and wanted to change. The recipient of Biden’s entreaty was Sen. James Eastland, at the time a well-known segregationist who had called blacks “an inferior race” and once vowed to prevent blacks and whites from eating together in Washington. The exchange, revealed in a series of letters, offers a new glimpse into an old relationship that erupted as a major controversy for Biden’s presidential campaign.
Candidates Hunt Desperately for Viral Moments
MSN – Amy Wang (Washington Post) | Published: 6/24/2019
As the crowded field of Democratic candidates jostle for the presidential nomination, the hunt for elusive breakout opportunities is increasingly urgent. But while viral moments are presented as spontaneous – and uniquely revealing about the candidates — the process can be anything but random, and the campaigns are devoting significant resources to spotting, cultivating, and publicizing them. Or in some cases, creating them outright. A good viral moment can help a candidate stand out in the sprawling field. A great one can telegraph positive qualities – humor, intelligence, compassion – in ways that reverberate far beyond the reach of a coffee shop in New Hampshire. In the best-case scenario, a single episode pushes interested voters over the fence to become full-fledged supporters.
Claiming to Be Cherokee, Contractors with White Ancestry Got $300 Million
Los Angeles Times – Adam Elmahrek and Paul Pringle | Published: 6/26/2019
An investigation by The Los Angeles Times demonstrates a failure in the efforts to help disadvantaged Americans by steering municipal, state, and federal contracts to qualified minority-owned companies. Since 2000, the federal government and authorities in 18 states have awarded more than $300 million under minority contracting programs to companies whose owners made unsubstantiated claims of being Native American. The vetting process for Native American applicants appears weak in many cases, government records show, and officials often accept flimsy documentation or unverified claims of discrimination based on ethnicity. The process is often opaque, with little independent oversight.
Duncan Hunter Had Affairs with Women He Worked With, Including His Own Aide
Roll Call – Katherine Tully-McManus | Published: 6/25/2019
U.S. Rep. Duncan Hunter illegally used campaign donations to finance extramarital romantic relationships with women he worked alongside, including one of his own aides, according to federal prosecutors. Hunter pursued five “intimate relationships” in total, and tapped donor funds to finance his liaisons, including ski trips, nights out in Washington, D.C., and Uber rides between his office to their homes. Government attorneys argued information about the relationships should be heard during the trial because they are central to his case, not “prurient.” Hunter’s infidelities have been alluded to in public court documents before, but the affairs were only described as “personal relationships.” Hunter faces trial in September for allegedly using his campaign committee as a personal bank account.
EPA’s Top Air Policy Official Steps Down Amid Scrutiny Over Possible Ethics Violations
Brainard Dispatch – Juliet Eilperin and Brady Dennis (Washington Post) | Published: 6/26/2019
Bill Wehrum spent only a year and a half as the Environmental Protection Agency’s (EPA) top air official before announcing plans to resign amid scrutiny over possible violations of federal ethics rules. EPA Administrator Andrew Wheeler did not cite a specific reason for the departure of Wehrum, who as an attorney represented power companies seeking to scale back air pollution rules. But Wehrum has privately expressed concern about how an ongoing House Energy and Commerce Committee probe was affecting his former law firm, Hunton Andrews Kurth. The committee launched an inquiry of Wehrum after it was reported that questions had been raised about his compliance with President Trump’s ethics pledge, which requires political appointees to recuse themselves from specific matters involving their former employers and clients for two years.
FEC Fines Florida-Based Company for Illegal Contribution to Support Rick Scott’s 2018 Campaign
Roll Call – Stephanie Aiken | Published: 6/25/2019
The FEC fined a Florida company for making an illegal campaign contribution to support Rick Scott’s 2018 campaign for the U.S, Senate. The $9,500 fine levied against Ring Power Corp., which sells and leases industrial machinery, represents a rare penalty for a company found to have violated a 75-year-old ban on campaign contributions from federal contractors. Ring Power has received federal contracts and grants since 2007. The New Republican PAC, a Super PAC supporting Scott’s campaign, returned the $50,000 contribution in August, shortly after the Campaign Legal Center filed a complaint.
GOP to Launch New Fundraising Site as Dems Crush the Online Money Game
Politico – Alex Isenstadt | Published: 6/23/2019
Republicans are set to launch a long-awaited, much-delayed online fundraising platform, a move aimed at closing Democrats’ small-donor money advantage ahead of the 2020 election. WinRed is being billed as the GOP’s answer to the Democratic Party’s ActBlue, which has already amassed over &174 million this year. The new tool is intended to reshape the GOP’s fundraising apparatus by creating a centralized, one-stop shop for online Republican giving, which the party has lacked to this point. Republicans until now have had a factionalized ecosystem of vendors that stymied efforts to unify behind a single fundraising vehicle.
Judge: Democrats’ emoluments case against Trump can proceed
San Jose Mercury News – Ann Marimow, Jonathan O’Connell, and Carol Leonnig (Washington Post) | Published: 6/25/2019
Rejecting a request from President Trump, a federal judge cleared the way for nearly 200 Democrats in Congress to continue their lawsuit against him alleging his private business violates an anti-corruption provision of the Constitution. U.S. District Court Judge Emmet Sullivan declined to put the case on hold and said lawmakers could begin seeking financial information, interviews, and other records from the Trump Organization. The administration still can try to delay or block Democrats in Congress from issuing subpoenas for the president’s closely held business information by appealing directly to the U.S. Court of Appeals for the District of Columbia Circuit to intervene.
Mueller to Testify to Congress, Setting Up a Political Spectacle
New York Times – Nicholas Fandos | Published: 6/25/2019
Former special counsel Robert Mueller will testify to Congress in open session on July 17 after being subpoenaed by two committees. Coming nearly three months after the release of his report on Russia’s election interference and possible obstruction of justice by President Trump, Mueller’s testimony has the power to potentially reshape the political landscape around Trump’s re-election campaign and a possible impeachment inquiry by the House. The question is what Mueller will be willing to say. He conducted his work in absolute private, despite incessant attacks by Trump in public and from within the White House, and ultimately issued a lengthy report that raised as many questions as it answered.
Supreme Court Leaves Census Question on Citizenship in Doubt
MSN – Adam Liptak (New York Times) | Published: 6/27/2019
The U.S. Supreme Court sent back to a lower court a case on whether the census should contain a citizenship question, leaving in doubt whether the question would be on the 2020 census. Chief Justice John Roberts, writing for the majority, said the explanation offered by the Trump administration for adding the question – asking whether a person is a citizen – was inadequate. But he left open the possibility that it could provide an adequate answer. Government experts predicted that asking the question would cause many immigrants to refuse to participate in the census, leading to an undercount of about 6.5 million people. That could reduce Democratic representation when congressional districts are allocated in 2021 and affect how hundreds of billions of dollars in federal spending are distributed.
Supreme Court Says Federal Courts Don’t Have a Role in Deciding Partisan Gerrymandering Claims
MSN – Robert Barnes (Washington Post) | Published: 6/27/2019
The U.S. Supreme Court ruled federal courts have no role to play in the dispute over the practice known as partisan gerrymandering, dealing a blow to efforts to combat the drawing of electoral districts for partisan gain. The court rejected challenges to Republican-drawn congressional districts in North Carolina and a Democratic district in Maryland. Voters and elected officials should be the arbiters of what is essentially a political dispute, Chief Justice John Roberts said in his opinion for the court. The ruling puts a stop to recent decisions by federal courts across the country that have found extreme partisan gerrymandering went so far as to violate the constitutional rights of voters.
Walmart to Pay $282 Million Over Foreign Corruption Charges
AP News – Matthew Barakat | Published: 6/20/2019
Walmart agreed to pay $282 million to settle federal allegations of overseas corruption, including funneling more than $500,000 to an intermediary in Brazil who was known as a “sorceress” for her uncanny ability to make construction permit problems disappear. U.S. authorities went after Walmart under the Foreign Corrupt Practices Act, which prohibits American companies operating abroad from using bribery and other illegal methods. The company settled both civil charges brought by the Securities and Exchange Commission and a criminal case by federal prosecutors in Virginia. It said the two settlements close the books on federal investigations that sand have collectively cost the company more than $900 million.
When Trump Visits His Clubs, Government Agencies and Republicans Pay to Be Where He Is
MSN – David Fahrenthold, Josh Dawsey, Jonathan O’Connell, and Michelle Ye Hee Lee (Washington Post) | Published: 6/20/2019
Since taking office, President Trump has faced pushback about his official visits to his properties from some of his aides, including inside the White House counsel’s office. They worried about the appearance that he was using the power of the presidency to direct taxpayer money into his own pockets, but Trump has rebuffed such warnings. In all, his scores of trips have brought his private businesses at least $1.6 million in revenue, from federal officials and Republican campaigns who pay to go where Trump goes. Campaign finance records show several GOP groups paying to hold events where Trump spoke. Republican fundraisers say they do that, in part, to increase the chances Trump will attend. It has also reshaped the spending habits of the federal government, turning the president into a vendor.
Canada
Canada – Lobbying Watchdog Says Glitch in System Skewed Volume of Registrations
Hill Times – Beatrice Paez | Published: 6/26/2019
Canadian Prime Minister Justin Trudeau’s tenure in office has undoubtedly brought a surge in lobbying activity, but a glitch in the registry’s system resulted in an overrepresentation of the number of lobbyists actively registered, Lobbying Commissioner Nancy Bélanger said. “During the past year, we realized that the numbers recorded in last year’s [report] included lobbyists whose registrations were no longer active,” Bélanger said. Still, the office has seen a steady uptick in the volume of communication reports posted since Trudeau took office in 2015.
From the States and Municipalities
Arkansas – Former Arkansas Lawmaker Pleads Guilty in Corruption Cases
AP News – Andrew DeMillo | Published: 6/25/2019
A former Arkansas lawmaker who is Gov. Asa Hutchinson’s nephew pleaded guilty to accepting bribes and filing a false tax return. Former state Sen. Jeremy Hutchinson also agreed to plead guilty to one count of conspiracy in a separate federal case in Missouri where he has been charged with accepting bribes to help Preferred Family Healthcare. Hutchinson admitted he took more than $10,000 in campaign funds for his personal use and did not report $20,000-per-month payments he received from one law firm and other sources of income he knowingly concealed from his taxes. Hutchinson also pleaded guilty to conspiracy to commit bribery and admitted to accepting more than $150,000 from the co-owner of orthodontic clinics in exchange for efforts to change a dental practices law.
Connecticut – Connecticut’s Search for a New Ethics Watchdog
Connecticut Mirror – Mark Pazniokas | Published: 6/20/2019
The Citizens’ Ethics Advisory Board is seeking a successor to Carol Carson as executive director of the Office of State Ethics, an agency that was new and struggling to find its way when she was hired. Carson, who is retiring on August 1, is credited with returning stability and credibility to the role of ethics watchdog, enforcing the ethics code for state officials, and overseeing the lobbying industry at the Capitol. “Let’s be clear about something: there is no replacing Carol Carson,” said Dena Castricone, the board’s chairperson.
Florida – When It Comes to Holding NRA Lobbyist Marion Hammer Accountable, Florida Senate Ignores Own Rules
Florida Bulldog – Dan Christensen | Published: 6/20/2019
The Florida Senate is apparently not going to ask longtime National Rifle Association (NRA) lobbyist Marion Hammer why she has not reported income from the group for more than a decade. Sen. Perry Thurston and Rep. Anna Eskamani filed complaints demanding the Legislature investigate Hammer for failing to disclose annual lobbying payments since 2007 as required by Florida law. It has been reported that records show the NRA paid Hammer more than a $750,000 between 2014 and 2018, yet none of it appears on quarterly compensation reports. But Senate Rules Committee Chairperson Lizbeth Benacquisto sent the complaint back to the Office of Legislative Services, which operates within the Senate president’s office, for “review” and “appropriate action.”
Indiana – Council Lawyer: Mayor unlikely to appeal campaign contribution ordinance
Fort Wayne Journal Gazette – Dave Gong | Published: 6/25/2019
Fort Wayne Mayor Tom Henry’s administration is unlikely to appeal a court ruling that struck down a controversial ordinance limiting campaign contributions from city contractors, city council attorney Joe Bonahoom wrote in a memorandum to the council president. Allen Superior Court Judge Jennifer DeGroote blocked the city from enforcing the ordinance recently after Kyle and Kimberly Witwer of Witwer Construction challenged the ordinance in a lawsuit. The ordinance forbade any company from bidding on a city contract if any owner, partner, or principal who owns more than 10% of that company gave more than $2,000 to the political campaign of a person with responsibility for awarding contracts.
Maryland – Baltimore’s Budget for Ethics Enforcement: $0
Baltimore Sun – Ian Duncan | Published: 6/25/2019
In the midst of multiple investigations into former Baltimore Mayor Catherine Pugh’s financial dealings, the city did not budget any money for ethics oversight. No city staff are dedicated to enforcing ethics rules and the word “ethics” appears nowhere in the city’s 1,035-page budget proposal for the coming year. Instead, the six-member staff of the Department of Legislative Reference must spend part of their time assisting the city’s volunteer ethics board, processing disclosure forms, answering questions from city employees, and investigating complaints.
New Jersey – NJ ‘Dark Money’ Law Faces First Lawsuit Challenging Requirement to Name Secret Donors
Bergen Record; Staff – | Published: 6/26/2019
A libertarian advocacy group filed a federal lawsuit challenging New Jersey’s newly signed “dark money” law that requires political groups to reveal their big-spending funders, legislation Gov. Phil Murphy signed despite earlier vetoing the bill and calling it “unconstitutional.” Americans for Prosperity asked a federal judge to prevent New Jersey officials from enforcing the law until the suit is decided and to declare the law unconstitutional. The law requires 501(c)(4) political nonprofits and 527 political organizations to report all funders that give more than $10,000 or spend more than $3,000. Americans for Prosperity says the law goes beyond typical campaign finance rules that cover only election-related ads. New Jersey will now also make groups report funders for ads on ballot measures, legislation, and policymaking, which grassroots groups say will prevent people from donating to them.
Oregon – Oregon Republicans Not Making Clear Whether They’ll Return to Salem, What They Want to Get Them Back
Portland Oregonian – Hillary Borrud and Mike Rogoway | Published: 6/26/2019
As the Oregon Senate Republicans’ walkout continues, there are no signs at the Capitol or elsewhere that members of the minority caucus will return soon. And publicly, they seem to be sending mixed messages about what they want if they agree to do so. Senate Republicans have drawn national attention since they fled the state to deny Democrats quorum for a vote on a bill to cap emissions. It turns out, however, that Democrats were one vote short of the 16 senators needed to pass the bill, so it would have been stopped from passage anyway.
Wyoming – A Mystery Group Has Been Pushing to Stop Gambling Regulation in Wyoming
Casper Star-Tribune – Nick Reynolds | Published: 6/25/2019
Over the past several months, a grassroots organization of obscure origin called the Wyoming Public Policy Center has been fighting to defeat gambling regulations proposed in the state Legislature, employing experienced lobbyists and anonymously authored policy papers in efforts to influence decision making. But the group was not registered with the state until after The Casper Star-Tribune began asking questions. In Wyoming, lobbyists and lobbying groups are required to register with the state. Despite that, there is little anyone can do about it: a combination of weak state laws and few mechanisms for law enforcement make it difficult to hold such groups accountable.
June 7, 2019 •
Nassau County, New York Introduces Vendor Code of Ethics and Vendor Portal
![Nassau County, New York Introduces Vendor Code of Ethics and Vendor Portal](https://stateandfed.com/wp-content/uploads/2019/06/1024px-Flag_of_Nassau_County_NY-1000x563.png)
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Nassau County Executive Laura Curran introduced a new vendor code of ethics and vendor portal for doing business with the county. The code of ethics addresses issues with gifts or contingent fees; employment negotiation restrictions during and after procurements; conflicts […]
Nassau County Executive Laura Curran introduced a new vendor code of ethics and vendor portal for doing business with the county.
The code of ethics addresses issues with gifts or contingent fees; employment negotiation restrictions during and after procurements; conflicts of interests; appearance by former county employees; and non-collusion.
The code applies to all county vendors, will be incorporated into all contracts, and will require prime vendors to distribute the terms of the code to all subcontractors.
The vendor portal allows for vendor and principal registration, viewing solicitations, integrity submissions, and other future functions for procurement activities.
In the upcoming days, the Offices of the County Executive and Chief Procurement Officer will post the vendor compliance presentation and code of ethics to the county website.
June 7, 2019 •
News You Can Use Digest – June 7, 2019
![News You Can Use Digest – June 7, 2019](https://stateandfed.com/wp-content/uploads/2019/05/NYCU-Logo-e1662491950752-1000x563.png)
National/Federal A ‘Bridge’ to China, and Her Family’s Business, in the Trump Cabinet MSN – Michael Forsythe, Eric Lipton, Keith Bradsher, and Sui-Lee Wee (New York Times) | Published: 6/2/2019 Transportation Secretary Elaine Chao has no formal affiliation or stake in […]
National/Federal
A ‘Bridge’ to China, and Her Family’s Business, in the Trump Cabinet
MSN – Michael Forsythe, Eric Lipton, Keith Bradsher, and Sui-Lee Wee (New York Times) | Published: 6/2/2019
Transportation Secretary Elaine Chao has no formal affiliation or stake in her family’s shipping business, Foremost Group, which has deep ties to the economic and political elite in China. But she and her husband, Senate Majority Leader Mitch McConnell, have received millions of dollars in gifts from her father, who ran the company until last year. And McConnell’s re-election campaigns have received more than $1 million in contributions from Chao’s extended family. Over the years, Chao has repeatedly used her connections and celebrity status in China to boost the profile of the company. Now, Chao is the top Trump official overseeing the American shipping industry, which is overshadowed by its Chinese competitors. Her efforts on behalf of the family business have come as Foremost has interacted with the Chinese state to a remarkable degree for an American company.
FEC to Mitt Romney, Michele Bachmann and 48 More Zombie Campaigns: Why are you still here?
Tampa Bay Times – Christopher O’Donnell, Eli Murray, Connie Humburg, and Noah Pransky | Published: 5/31/2019
The FEC demanded explanations from about 50 politicians who are operating zombie campaigns – political committees that keep spending contributions long after the campaign has ended. The agency sent letters to the campaigns asking why their campaign accounts were still open. It flagged specific expenses by at least 17 campaigns and asked them to justify the spending. It is the first action taken by the FEC since it announced in April 2018 that it would start scrutinizing the spending of what it called “dormant” campaigns. Federal law does not allow campaign money to be spent improving politicians’ personal lives.
How Payday Lenders Spent $1 Million at a Trump Resort – and Cashed In
ProPublica – Alice Wilder (WNYC) and Anjali Tsui | Published: 6/4/2019
In March, the payday lending industry held its annual convention at the Trump National Doral hotel outside Miami. A month earlier, Kathleen Kraninger, who had just finished her second month as director of the federal Consumer Financial Protection Bureau, had delivered what the lenders consider an epochal victory: Kraninger announced a proposal to eviscerate a crucial rule that had been passed under her Obama-era predecessor. This year was the second in a row the industry’s trade group, the Community Financial Services Association of America, held its convention at the Doral. In the eight years before 2018, the organization never held an event at a Trump property.
In Need of Cash, Democratic Presidential Hopefuls Turn to Wealthy Donors
MSN – Michelle Ye Hee Lee (Washington Post) | Published: 6/2/2019
Across the Democratic field, presidential candidates are embracing the big donors they distanced themselves from early on – a sign of increasing doubt the small, online donations the campaigns have been chasing will be sufficient to sustain two-dozen primary contenders. Many of the candidates previously had held a handful of high-dollar fundraisers or avoided them altogether, seeking to tap into the populist sentiment that has animated the Democratic base. But after a disappointing fundraising haul in the first quarter of the year, and as the primary drags on with no clear front-runner, many of the candidates are turning their focus to wealthy donors, a strategy that could help keep their campaigns viable but may hamper their ability to connect with base voters.
Liberals Rip Democratic Leaders for Writing Drug Pricing Bill in Secret
The Hill – Peter Sullivan | Published: 6/6/2019
Progressive House Democrats are growing increasingly frustrated with their party’s leadership, accusing them of writing Democrats’ signature bill to lower prescription drug prices in secret and without their input. At issue is a plan Pelosi’s office has been working on for months that would allow Medicare to negotiate drug prices, a top priority for Democrats and one the party stressed in its campaign last year to win back the House. There is now an intense debate within the Democratic caucus over the details of that proposal, with the Progressive Caucus pushing for a bill that it says is stronger because it would strip a company of its monopoly on a drug if the manufacturer refuses to agree to a reasonable price in Medicare negotiations.
Meet the GOP Operatives Who Aim to Smear the 2020 Democrats – but Keep Bungling It
MSN – Manuel Roig-Franzia and Beth Reinhard (Washington Post) | Published: 6/4/2019
Like notorious dirty tricksters before them, Jack Burkman and Jacob Wohl operate in a realm where it matters little whether their outrageous claims against political opponents are proved – they hardly ever are – but only whether they somehow slip into the national consciousness. But today it is a more dangerous game: they operate in an era when notions about truth and fiction have been upended and in which many Americans get their information from self-affirming, partisan silos, making their brand of political cyberwarfare hyper-relevant.
Recent Ex-Members of Congress Head to K Street as ‘Shadow Lobbying’ Escalates
Center for Responsive Politics – Karl Evers-Hillstrom | Published: 5/30/2019
Nearly two dozen former members of the 115th Congress have already found jobs at lobbying firms. Lobbying is a natural next step for recently departed members who spent years cultivating relationships with their colleagues and interest groups. While former members of Congress must wait two years before lobbying their respective chamber’s ex-colleagues, they often engage in so-called shadow lobbying – participating in activities that might be considered lobbying but declining to register under the Lobbying Disclosure Act (LDA). “[The] LDA is nothing more than an honor system,” said Paul Miller, president of the National Institute for Lobbying and Ethics.
Tech Giants Amass a Lobbying Army for an Epic Washington Battle
New York Times – Cecilia Kang and Kenneth Vogel | Published: 6/5/2019
Amazon, Apple, Facebook, and Google have built themselves into some of the largest players on K Street as they confront threats from the Trump administration and both parties on Capitol Hill. Amazon’s expansion has been met with unease over labor conditions and the company’s effect on small businesses. The four companies spent a combined $55 million on lobbying last year. Of the 238 people registered to lobby for the companies in the first three months of this year, both in-house employees and those on contract from lobbying and law firms, about 75 percent formerly served in the government or on political campaigns. Amazon’s Washington office is led by a former Federal Trade Commission official, Brian Huseman. Its roster of contract lobbyists includes three Democratic former members of Congress and two former Justice Department lawyers.
Ted Cruz and Alexandria Ocasio-Cortez Team Up to Ban Lawmakers from Lobbying
National Public Radio – Sasha Ingber | Published: 5/31/2019
Two lawmakers who have often been at odds found common ground in a place that often highlights polarizing opinions: Twitter. That is where U.S. Sen. Ted Cruz and U.S. Rep. Alexandria Ocasio-Cortez vowed to set aside their differences and work on new lobbying restrictions for lawmakers. Now an unlikely coalition is forming around their joint effort. Craig Holman, who lobbies on ethics, campaign finance, and lobbying on behalf of Public Citizen, said it is “heartening” that Cruz and Ocasio-Cortez moved to bridge the deep partisan divide. “I am not sure if Congress will be willing to adopt their proposed lifetime ban, but the sheer fact of a left-and-right agreement that the revolving door is a grave problem that must be addressed is going to move the ball forward,” Holman said.
The Campaign Finance of Women’s Suffrage
WHYY – Kimberly Adams | Published: 6/4/2019
Women’s suffrage took more than seven decades of political struggle and included marches, hunger strikes, and arrests. And, like political campaigns of today, it required a lot of money. While women like Susan B. Anthony and Elizabeth Cady Stanton were on the front lines of the movement, there were other women working behind the scenes to fund it. “We don’t tend to teach about the suffrage movement as a major lobbying force, a major well-funded organization in American political history, but it was,” said Corrine McConnaughy, an associate professor of political science at George Washington University and author of “The Woman Suffrage Movement in America: A Reassessment.”
Trump Resort Revenue Has Gone Up After Presidential Visits
Politico – Anita Kumar | Published: 6/6/2019
President Trump’s week-long trip to Europe included a tour of his own businesses. Trump traveled to his luxury resort on Ireland’s west coast for a visit that brought world-wide publicity and increased security to the location, and, if past trends hold, more revenue. The president’s trip to Trump International Golf Links in Doonbeg, Ireland has once again led to criticisms that he is using his office to make money for his own business. It marks the second time he has visited one of his properties outside the United States since he was sworn into office. “U.S. foreign relations should never rise and fall on the financial interests of the president and the ability to promote his own property,” said Noah Bookbinder, executive director of Citizens for Responsibility and Ethics in Washington, which examined his financial disclosures.
Trump Urges Customers to Drop AT&T to Punish CNN Over Its Coverage of Him
Portland Press Herald – Craig Timberg, Taylor Telford, and Josh Dawsey (Washington Post) | Published: 6/3/2019
President Trump called for a boycott of AT&T, the corporate owner of CNN, saying the network paints a “false picture” of the U.S. The comment, which Trump tweeted in response to seeing CNN coverage while traveling during a European tour, fueled criticisms the president was using his power inappropriately to intimidate critics. Historians struggled to cite an equivalent threat even from presidents such as Richard Nixon renowned for their hostility toward the press. Less democratic nations with more tenuous press freedoms often use government regulatory power, criminal investigations or tax audits to punish news organizations seen as providing unflattering coverage, but past U.S. presidents rarely have taken such public shots at the businesses of the owners of major American news organizations, historians said.
From the States and Municipalities
Alabama – Dunkin’ Donuts Owner Accuses Ethics Commission Investigator of Abuse of Power
Montgomery Advertiser – Kirsten Fiscus | Published: 5/31/2019
When Damon Dunn received notification of a discrimination complaint against his Dunkin’ Donuts store, he was concerned at first, then confused, and then angry. It is corporate policy that customer complaints are reviewed and handled in a timely manner, but the majority of those are disgruntled customers upset about a long wait time or food prepared incorrectly. Byron Butler, a man Dunn would learn is an investigator with the Alabama Ethics Commission, accused the store of charging black customers more for extra pumps of coffee flavoring known as “swirl” at the restaurant, a claim that Dunn says is unfounded. Butler told an employee he was an investigator and took a verbal statement from her about the charging practices. The employee, who is 18, thought she would face legal trouble if she did not talk with him.
Florida – Lawmakers Call for Probe of NRA Lobbyist Marion Hammer’s Failure to Disclose Payments
Miami Herald – Samantha Gross | Published: 5/30/2019
Some Democratic lawmakers in Florida are calling for an investigation into whether prominent National Rifle Association (NRA) lobbyist Marion Hammer violated state law by failing to disclose payments from her organization while lobbying on NRA priorities like banning the sale of bump stocks. According to Florida law, non-employee lobbyists for both legislative and executive branches are required to register and disclose their total compensation. Hammer is not an in-house lobbyist for the NRA, and therefore is required under law to submit a compensation report for each quarter during which she was registered to lobby. The Florida Bulldog reported Hammer failed to file any compensation reports with state since at least 2007.
Florida – Top City Law Firm Broke County Lobbying Rules
Fort Myers News-Press – Bill Smith | Published: 5/31/2019
One of the region’s biggest law firms is among several business interests that did not meet required deadlines for registering as lobbyists, Lee County’s inspector general said in an investigative report. Henderson, Franklin, Starnes & Holt, a Fort Myers based law firm; John Gucciardi, a consultant to Fort Myers Beach developer TPI Hospitality; and Waldrop Engineering each missed filing deadline. Waldrop went seven years without filing the statement. It has since filed registrations for its employees.
Georgia – Abrams Probe Highlights Wide Reach of State Ethics Commission
Georgia Public Broadcasting – Stephan Fowler | Published: 6/5/2019
Lawyers for former gubernatorial candidate Stacey Abrams say the Georgia Government Transparency and Campaign Finance Commission did not follow its own rules in an investigation of her 2018 campaign. The commission alleges illegal coordination between the Abrams campaign and four outside organizations. The campaign argued the ethics panel failed to follow its rules for opening an inquiry and sharing probable cause for the allegations. But according to state law, the commission is following the rules. Rick Thompson, a former executive secretary of the commission, said in terms of procedure, the subpoenas are above board. The full scope of the probe will not be made clear until it is put before a meeting of the full commission.
Illinois – Ald. Edward Burke Indicted on Expanded Federal Racketeering, Bribery Charges
Chicago Tribune – Jason Meisner, Todd Lighty, and Gregory Pratt | Published: 5/30/2019
Chicago Ald. Edward Burke was meeting with a fellow alderman in October 2017 when he allegedly expressed his displeasure over the way developers of the old main Chicago post office had so far failed to throw any business to Burke’s private law firm. “As far as I’m concerned, they can go f— themselves,” Burke told Ald. Daniel Solis, who was secretly recording the conversation. The conversation is at the center of a 14-count indictment outlining a series of alleged schemes in which prosecutors say Burke abused his City Hall clout to extort private legal work from companies and individuals doing business with the city. Also charge Burke in attempting to shake down two businesspeople seeking to renovate a Burger King restaurant in the ward.
Kentucky – Appellate Court Upholds State Ban of Gifts, Money to Kentucky Lawmakers
Lexington Herald-Leader – Jack Brammer | Published: 5/30/2019
A federal appeals court upheld a Kentucky law that prohibit lobbyists from giving gifts to state legislators or donating to their campaigns. The ruling by the U.S. Sixth Circuit Court of Appeals reversed a ruling by U.S. District Court Judge William Bertelsman, who struck down the bans, ruling Kentucky’s laws burdened “core political speech” and curtailed freedom of association. The appeals court reversed the ruling and said the measures “enacted to prevent corruption and protect citizens’ trust in their elected officials, comport with the Constitution.”
Massachusetts – Convicted of Corruption, DiMasi Now Wants to Be a Lobbyist. The State Has Other Ideas
Boston Globe – Matt Sout and Andrea Estes | Published: 6/5/2019
Massachusetts Secretary of State William Galvin’s office rejected former state House Speaker Salvatore DiMasi’s application to become a lobbyist just days after he registered to lobby both the Legislature and executive branch. DiMasi appealed and is due to appear before an administrative hearing officer. His attempt at entering the lucrative industry came after he completed his supervised release following his conviction on corruption charges. DiMasi argued that because lawmakers did not include any of the specific federal statutes on which he was convicted into the state law, he should not be prohibited from registering. Laurie Flynn, Galvin’s chief legal counsel, argued DiMasi’s criminal record includes “conduct in violation” of state lobbying and ethics laws, which automatically bars him from lobbying for 10 years after his conviction, or until June 2021.
Michigan – Emails Show MDOT Let Lobbyist Steer Report on Gravel Shortage for Michigan Roads
Detroit Free Press – Paul Egan | Published: 6/6/2019
When Michigan gravel companies wanting to open or expand a mine are opposed by neighbors objecting to the noise and dust, they point to a 2016 consultant’s study, commissioned by the Michigan Department of Transportation (MDOT), that says the state is running out of gravel to rebuild its busted roads. But in fact, the Michigan Aggregates Association (MAA) – the lobbying organization for the sand and gravel industry, which is pushing for legislation that would severely restrict the ability of local governments to deny permits for new or expanded gravel mines – was behind the study, records show. The MAA recommended the consultant MDOT hired, set out the scope of work and how to price the study, and even spelled out the expected findings. The group also had a role in initiating the study.
Missouri – Free Acupuncture and Eye Exams for Lawmakers Are No-Nos, Missouri Ethics Commission Says
St. Louis Post-Dispatch – Jack Suntrup | Published: 6/3/2019
Two opinions from the Missouri Ethics Commission, which read as lists of dos-and-don’ts for lawmakers and their employees, were issued in response to questions following the passage of Amendment 1 last year. One of the provisions of what is known as “Clean Missouri” limits lobbyist gifts to five dollars. Accepting engraved plaques worth more than five dollars from lobbyists or organizations that lobby is prohibited, the commission said. It also said lawmakers should avoid free use of conference rooms owned by organizations that retain lobbyists. The opinion outlines a number of other scenarios in which lawmakers or their staffs may face ethical dilemmas.
New Jersey – Murphy Officials ‘Seriously Mishandled’ Katie Brennan Assault Allegation, Inquiry Finds
Bergen Record – Dustin Racioppi | Published: 6/5/2019
New Jersey Gov. Phil Murphy’s staff “seriously mishandled” a sexual assault claim by not investigating it and not telling Murphy before the hiring of the alleged assailant – details of which remain a mystery – for a top position, a legislative inquiry has found. The report by the Select Oversight Committee chronicles a series of missteps made by some of the highest-ranking officials in Murphy’s orbit in response to the allegation, made by former campaign volunteer Katie Brennan, and calls into question the “competence and culture of state government as a whole.” Brennan, now a housing official in the administration, had accused Al Alvarez, a former Murphy aide, of sexually assaulting her during the 2017 campaign. Alvarez was not charged and has denied the allegation.
New York – Nassau County Implements New Ethics Rules
Newsday – Candice Ferrette | Published: 6/5/2019
Nassau County Executive Laura Curran signed new rules for county vendors, including a ban on gifts to county procurement officials, aimed at stemming contracting abuses that were central to federal corruption cases involving prominent local officials. Under the new Vendor Code of Ethics, county employees involved with contracting cannot accept gifts “of any kind” from vendors, “no matter how small.” Contractors also cannot discuss or offer jobs to county employees involved with procurement or to their family members. Under the new rules, vendors will be required to certify they have read and accepted the terms of the ethics code and have distributed it to all subcontractors and suppliers.
Rhode Island – The Providence Mayor Raised Thousands of Dollars for a Nonprofit with Ties to His Campaign, Then He Reimbursed Himself from Its Coffers
Boston Globe – Dan McGowan | Published: 6/6/2019
Providence Mayor Jorge Elorza raised hundreds of thousands of dollars for a nonprofit organization with close ties to his political campaign and one that later reimbursed him and other high-ranking city employees for travel expenses to conferences all over the country. Now, the practice of soliciting donations for the Providence Tourism Fund – often from law firms and other companies that have contracts with the city – has come under fire from watchdogs who say Elorza is sidestepping Rhode Island’s strict campaign finance laws so he can collect unlimited amounts of money from corporations. Elorza did not create the fund. It was established in 2009 to raise money for a national conference that was held in Providence, but he has been far more aggressive about using it for travel than his predecessors.
April 29, 2019 •
Monday’s LobbyComply News Roundup
Campaign Finance National: Pete Buttigieg Swears Off the Lobbyist Money He Once Accepted by Jeremy Peters and Shane Goldmacher for New York Times Missouri: Columbia Developer Funnels Tens of Thousands Through Shell PACs to Lawmakers by Yue Yu (Columbia Missourian) […]
Campaign Finance
National: Pete Buttigieg Swears Off the Lobbyist Money He Once Accepted by Jeremy Peters and Shane Goldmacher for New York Times
Missouri: Columbia Developer Funnels Tens of Thousands Through Shell PACs to Lawmakers by Yue Yu (Columbia Missourian) for KPVI
New Mexico: City Now Allows Online Donations for Candidates by Jessica Dyer for Albuquerque Journal
Ethics
National: Acting Defense Secretary Cleared of Wrongdoing in Probe of His ties to Boeing by Dan Lamothe and Missy Ryan for Washington Post
Maryland: Anne Arundel County Delegate Posts Advertisements, Tries to Sell Car on Official Social Media by Chase Cook for Capital Gazette
North Dakota: North Dakota Legislature Finalizes Ethics Bill, but ‘Safeguard’ Looms over Measure 1 Implementation by John Hageman (Forum News Service) for Dickinson Press
Tennessee: Feds to Sue Sen. Steve Dickerson and Other Pain Clinic Owners Over Fraud, Forgery Allegations by Brett Kelman for The Tennessean
Procurement
California: NRA Sues City of L.A. Over Its New Contract Disclosure Law by Dakota Smith for Los Angeles Times
April 18, 2019 •
Tallahassee Board Proposes Expansion of Ethics Code
On Tuesday, the Tallahassee Independent Ethics Board proposed changes to expand the city’s ethics code. The proposal expands the Board’s jurisdiction to procurement employees and individuals required to file state financial disclosures. Additionally, the proposal increases the fines faced by […]
On Tuesday, the Tallahassee Independent Ethics Board proposed changes to expand the city’s ethics code.
The proposal expands the Board’s jurisdiction to procurement employees and individuals required to file state financial disclosures.
Additionally, the proposal increases the fines faced by lobbyists to $1,000 for the first intentional violation, and prohibits covered individuals from accepting or soliciting all gifts regardless of value from vendors and lobbyists.
The draft ordinance will head to the city commission for final approval later this spring.
April 17, 2019 •
Los Angeles City Council Working Towards Banning Developer Donations
The Los Angeles City Council rules committee voted to have the city attorney draft two versions of a proposed ban on donations to city officials from developers seeking approval for their building projects. Version one would directly follow the Ethics […]
The Los Angeles City Council rules committee voted to have the city attorney draft two versions of a proposed ban on donations to city officials from developers seeking approval for their building projects.
Version one would directly follow the Ethics Commission’s recommendation to restrict non-individuals and developers from making political contributions. The restriction would apply from the date the project application is filed until 12 months after the final resolution of the application.
Version two would ban donations from any person or entity pursuing or currently working on large development projects with the city.
Both proposals would ban elected officials from soliciting behested payments from restricted sources, and lower the disclosure threshold for behested payments to $1,000 per payor per year.
Additionally, the proposals would require the disclosure of behested payments to identify whether the payor is a lobbyist, lobbyist firm, bidder, contractor, or developer.
These drafts are expected to be presented to the full City Council within the next few weeks.
State and Federal Communications, Inc. provides research and consulting services for government relations professionals on lobbying laws, procurement lobbying laws, political contribution laws in the United States and Canada. Learn more by visiting stateandfed.com.