In United Healthcare Services, Inc. v. Mayor & City Council of Baltimore, United Healthcare Services, Inc. (United) was not awarded the city of Baltimore’s Request for Proposal (RFP) for medical administration services despite being fully compliant with listed Minority Business Enterprises (MBE) and Women Business Enterprises (WBE) goals.

The companies awarded the contract did not comply with the requested MBE and WBE set at 11 percent and 4 percent respectively. After United complained, the city allowed the selected offerors to revise their MBE and WBE forms.

United filed suit against the city alleging violations of Baltimore’s procurement laws. The court found the city “is generally given a wide berth in making its decisions,” and United cannot point to a provision in the City Code the city clearly violated.

Additionally, the City Code only requires bidders make a “good faith effort” to be in compliance with the RFP and “the City has more expertise interpreting the City Code, and its own rules, than the Court.”

In turn, United failed to establish it would be likely to succeed on the merits.

Ethics

Justice Department Agrees to Settle Lawsuits Over IRS Scrutiny of Tea Party Groups by Matt Zapotosky for Washington Post

California: Sexual Harassment Complaints Topic of California Assembly Public Hearings by Alexei Koseff for Sacramento Bee

Florida: City Commissioners Nix Key Wording in Ethics Ordinance by Jeff Burlew for Tallahassee Democrat

South Carolina: South Carolina GOP Caucus: Open records law doesn’t apply by The Associated Press for Raleigh News and Observer

Campaign Finance

FEC Drops Foreign Money Case Involving Super PAC Contributions by Kenneth Doyle for Bloomberg BNA

Kansas: Kansas Ethics Panel Says No to Bitcoin Contributions, at Least for Now by Peter Hancock for Lawrence Journal-World

Lobbying

Florida: Ethics Board Cites Justin Sayfie, Capitol Group for Reporting Violations by Jim Rosica for Florida Politics

Illinois: Emanuel’s Ethics Board Walks Back $2,500 Fines Against 3 Who Illegally Lobbied Him by Bill Ruthhart for Chicago Tribune

Elections

Kentucky: Fired Elections Staffer Alleges Grimes Improperly Gathered Voter Data During Campaigns by Daniel Desrochers for Lexington Herald-Leader

Procurement

With Business Booming Under Trump, Private Prison Giant Gathers at President’s Resort by Amy Brittain and Drew Harwell for Washington Post

Lobbying

Washington: “Seattle Mayoral Aide Sees Conflict of Interest in Lobbying by Political Consultants” by Jim Brunner for Seattle Times

Campaign Finance

“Black Executives Join Forces, Forming a PAC to Back Them Up” by Kate Kelly for New York Times

Florida: “Beach Commissioner Resigns, Cuts Deal Barring Him from Public Office for One Year” by Joey Flechas and Nicholas Nehamas for Miami Herald

Idaho: “City Attorney Investigates Helicopter Promotion” by Bruyan Clark for Post-Register

Missouri: “Greitens’ Office Coordinated with Campaign Fund Over Top Missouri Schools Job, Report Shows” by Kurt Erickson for St. Louis Post-Dispatch

Ethics

California: “California Senate Hires Two Firms to Investigate Sexual Harassment Complaints” by Taryn Luna for Sacramento Bee

Oregon: “State Senator: Fellow senator groped me in Oregon Capitol” by Gordon Friedman for Portland Oregonian

Texas: “Prosecutors Drop All Remaining Charges Against Rep. Dawnna Dukes” by Nolan Hicks, Mark Wilson, and Ryan Autullo for Austin American-Statesman

Elections

“Russia’s Favored Outlet Is an Online News Giant. YouTube Helped.” by Daisuke Wakabayashi and Nicholas Confessore for New York Times

Legislative Issues

“Sen. Jeff Flake Will Retire, Citing Direction of GOP Under Trump” by David Weigel and Ed O’Keefe for Washington Post

Procurement

Montana: “Small Montana Firm Lands Puerto Rico’s Biggest Contract to Get the Power Back On” by Steven Mufson, Jack Gillum, Aaron Davis, and Arelis Hernandez for Washington Post

The Austin Financial Services Department is proposing drastic changes to the city’s anti-lobbying and procurement ordinance.

The proposed changes shorten the no contact period during a bid solicitation and allow the purchasing officer to consider mitigating factors when determining if a violation has occurred. The recommendations also abbreviate, clarify, and consolidate what communications and representations are permitted and prohibited during the solicitation process.

Comments and suggestions for additional proposed changes are still being accepted.

This comes after city council voted to suspend the anti-lobbying and procurement ordinance for individuals seeking waste management contracts after they struggled to find and agree upon suitable contractors.

City Council met this week to discuss the proposed changes and postponed taking action until November 9, 2017.

Campaign Finance

New Mexico: New Campaign Spending Rules to Take Effect by Dan Boyd for Albuquerque Journal

New York: Firm Uses Loophole to Secretly Donate $60G to de Blasio Campaign, Lobbying Records Show by James Fanelli for New York Daily News

Ethics

Mueller Gives White House Names of 6 Aides He Expects to Question in Russia Probe by Carol Leonnig, Rosalind Helderman, and Ashley Parker for Washington Post

Kentucky: Legislative Sex Harassment Case Spurs Call for Change in Kentucky’s Ethics Law by Jack Brammer for Lexington Herald-Leader

Elections

On Facebook and Twitter, a Hunt for Russia’s Meddling Hand by Scott Shane for New York Times

In Free-Range Trump, Many See Potential for a Third Party by Jeremy Peters for New York Times

Lobbying

Canada: Quebec’s Lobbyist Registry Best in Canada, Though All Struggle in Key Transparency Metrics: Study by Marco Vigliotti for The Hill Times

Virginia: Virginia Lawmakers Attend Fewest Lobbyist-Paid Entertainment Events Since McDonnell Case by Will Houp for Virginian-Pilot

Procurement

Illinois: Aldermen Take Another Stab at Relaxing Ethics Rules for Contractors by Fran Spielman for Chicago Sun-Times

Lobbying

Delaware: “Politics of Persuasion: Dozens of lobbyists now work the legislature for more than 200 groups” by Matt Bittle for Delaware State News

Texas: “Fred Lewis Appointment Stirs Controversy” by Jo Clifton for Austin Monitor

Campaign Finance

“Democrats Say ‘Citizens United’ Should Die. Here’s Why That Won’t Happen.” by Sarah Kleiner for Center for Public Integrity

California: “SF’s Political Watchdog Agency Proposes Sweeping Reforms, Nonprofits Cry Foul” by Joshua Sabitini for San Francisco Examiner

Colorado: “Denver Proposal Aims to Force Disclosure of Independent Spending in Elections as ‘Dark Money’ Trickles Down” by Jon Murray for Denver Post

Maine: “Pressed to Reveal Funding Sources, Miami Real Estate Developer Withdraws from York County Casino Campaign” by Scott Thistle for Portland Press Herald

Ethics

“Mueller Examining Trump’s Draft Letter Firing FBI Director Comey” by Rosalind Helderman, Carol Leonnig, and Ashley Parker for Washington Post

“Menendez Trial Set to Begin with Tensions High and Washington Watching” by Nick Corasaniti for New York Times

Hawaii: “OHA’s Peter Apo To Pay $25,000 For Ethics Violations” by Nick Grube for Honolulu Civil Beat

Wisconsin: “Report: New Ethics Commission has conducted just 1 investigation, says compliance is up” by Mark Sommerhauser for Wisconsin State Journal

Procurement

New Mexico: “New Mexico Sues Chiefs Owner Clark Hunt, Alleging Kickbacks in $300 Million Investment” by Robert Cronkelton and Ian Cummings for Kansas City Star

National:

Campaign Regulation Foes Targeting State-Level Restrictions
Center for Public Integrity – Ashley Balcerzak | Published: 8/31/2017

Having won significant battles at the federal level over campaign finance laws, political groups and libertarian nonprofits are now targeting state-level rules in district and appellate courts across the country. The effects could be wide-ranging. The most notable battles deal with when groups need to disclose their donors, and whether contribution limits trample on donors’ freedoms of speech and expression.

The New Front in the Gerrymandering Wars: Democracy vs. math
New York Times – Emily Bazelon | Published: 8/29/2017

Wisconsin Republicans tried hard to keep their legislative mapmaking process a secret, but they were not successful. In the first of two lawsuits brought by Democratic voters, three federal judges berated GOP leaders in 2012 for ‘‘flailing wildly in a desperate attempt to hide’’ their methods to assure Republican control of the state Legislature. A court ordered Republicans to turn over three computers. In 2016, a computer expert hired by the plaintiffs found spreadsheets that used a powerful new gerrymandering tool, based on sophisticated computer modeling.

Federal:

How to Get Rich in Trump’s Washington
New York Times – Nicholas Confessore | Published: 8/30/2017

Interests that have spent millions of dollars lobbying in Washington, D.C. were surprised by Donald Trump’s victory last November. By the end of his first 100 days in office, it seemed, Trump had not so much “drained the swamp” as enshrouded it in a fog of uncertainty. No previous president had changed his mind more often, or contradicted his cabinet so frequently, or permitted such ideological combat in the White House. Big corporations and trade associations did not quite know what to expect. But mostly, they did not know whom to contact. All of this inadvertently created an entirely new business model for Trump’s friends and former employees.

Members of Congress Scoring Personal Loans from Political Supporters
Center for Public Integrity – Nicholas Jahr and Ellen McCreary Ionas | Published: 8/29/2017

A review of financial disclosure forms filed by current members of the U.S. House and Senate reveals at least 19 have accepted loans from organizations or wealthy individuals instead of a bank or traditional financial institution. Often, these organizations and individuals rank among the lawmakers’ key political supporters. In two of these cases, the loans were made to members’ spouses. The loans range in value from $15,000 to $5 million. There is nothing illegal about such loans, even when the lender is also a campaign donor. But watchdog groups say such arrangements raise concerns about possible conflicts-of-interest.

Washington Lobbying Firms Receive Subpoenas as Part of Russia Probe
Washington Post – Carol Leonnig and Tom Hamburger | Published: 8/25/2017

Special counsel Robert Mueller issued grand jury subpoenas asking public relations and lobbying firms to provide records regarding their interactions with the consulting firms led by Michael Flynn, a former national security adviser to President Trump, and Paul Manafort, former chairperson of the Trump presidential campaign. The requests suggest Mueller’s investigators are looking closely at Manafort and Flynn, both of whom face possible legal jeopardy for allegedly failing to disclose foreign governments or parties may have been the beneficiaries of their consulting and lobbying work, as they seek potential links between Trump’s campaign and Russia.

From the States and Municipalities:

California
3 of 4 Colonies Corruption Defendants Found Not Guilty on All Charges
San Bernardino Sun – Joe Nelson and Richard Deatley | Published: 8/28/2017

Developer Jeff Burum and two former San Bernardino County officials – former Supervisor Paul Biane, and Mark Kirk, former chief of staff for then-county Supervisor Gary Ovit – were found not guilty of bribery, conflict-of-interest, and improper influence in an alleged scheme to get county approval of a $102 million court settlement in favor of a developer. Prosecutors alleged Burum paid $400,000 in political contributions to the defendants and former Board of Supervisors Chairperson Bill Postmus, who later entered a plea bargain with prosecutors and testified at the trial. The money, investigators alleged, were actually bribes or payments for delivering the settlement.

Florida
FBI Arranged Outings for Gillum, Others During NYC Trip
Tallahassee Democrat – Jeff Burlew | Published: 8/25/2017

The FBI may have tried to entice Tallahassee Mayor Andrew Gillum through one of his close friends to see a Broadway show, catch a Major League Baseball game, and stay at a New York City hotel as part of its investigation into alleged public corruption in Tallahassee. Gillum, who had room reservations elsewhere, will not say if he stayed at or visited the Millennium Hotel in Manhattan, where an FBI agent posing as a developer had arranged rooms for him and others. He also will not say if he attended “Hamilton” or went to the New York Mets game. Public officials such as Gillum are required to report gifts valued over $100, though there are exceptions.

Georgia
White Lawmaker Warns Black Attorney She May ‘Go Missing’ If Confederate Statues Are Threatened
Washington Post – Cleve Wootson Jr. | Published: 8/30/2017

Georgia Rep. Jason Spencer said a former Democratic lawmaker might “go missing” if she continues to criticize Confederate statues. Spencer originally posted a photo with a memorial for Confederate President Jefferson Davis, saying the statue was Georgia’s history and used the hashtag #DealWithIt in a Facebook post. That prompted a response from former state Rep. LaDawn Jones, who told Spencer to “put your hoods and your tiki torches away. We are no longer afraid.” Spencer then said those who criticize the state’s Confederate history “will go missing in the Okefenokee” because people in South Georgia “will not put up with it like they do in Atlanta.”

Idaho
Lawmakers: Idaho ‘uniquely poised’ to stiffen campaign, lobbying disclosure requirements
Spokane Spoesman-Review – Betsy Russell | Published: 8/28/2017

Idaho lawmakers are mulling several key changes to the state’s campaign finance and lobbying laws. A bipartisan working group met for a second time to hear possible recommendations from the state’s top lobbyists and Secretary of State Lawerence Denney. The goal is to have the panel submit suggestions to before the 2018 legislative session begins in January. Some of the proposals would place new reporting requirements on PACs, and require lobbyists to report their expenditures year-round, rather than just during the legislative session.

Iowa
Special Interest Groups Spend Big at Iowa Capitol
Des Moines Register – Brianne Pfannenstiel | Published: 8/24/2017

A Des Moines Register analysis showed special interest groups in Iowa paid lobbyists about $20.4 million last year in an effort to sway policy on issues ranging from Medicaid to workers’ compensation to legalized fireworks. The data provide a broad look at who is vying for influence at the Capitol during a year in which Republicans took control of the House, Senate, and governor’s office for the first time in nearly 20 years. With the new power dynamic, many groups may choose to “lobby up,” either to capitalize on their new opportunity or to fight perceived threats, said lobbyist Jim Carney.

Kentucky
Ethics Group Wants to Know What Led Mnuchin to View Eclipse in Kentucky
Washington Post – Drew Harwell and Beth Reinhard | Published: 8/24/2017

Citizens for Responsibility and Ethics in Washington is seeking records detailing the cost of Treasury Secretary Steve Mnuchin’s recent trip to Kentucky in a government plane, saying it “seems to have been planned around the solar eclipse.” Mnuchin and his wife, Louise Linton, watched the eclipse from the lawn of Fort Knox in Kentucky, which was just outside the path of totality. It was Linton’s sharing of the expensive designer labels of her outfit as she stepped off the plane in Kentucky in an Instagram post and her subsequent rant against a commenter who criticized it that first raised eyebrows.

Massachusetts
In Massachusetts, Lobbyists Outnumber Lawmakers Seven-to-One
WWLP – Steve LeBlanc (Associated Press) | Published: 8/27/2017

There are now more than seven lobbyists for each of the 200 state lawmakers in Massachusetts. From 2006 to 2016, the number of active lobbyists jumped by about 1,000. A big part of the increase is due to a law that took effect in 2009 aimed at sharpening the definition of a lobbyist. Before the new law, an individual was not considered to be a lobbyist if he or she spent less than 50 hours lobbying, or received less than $5,000 in lobbying fees, during each six-month reporting period. The new law tightened that to 25 hours, or $2,500.

Michigan
Attorney: Michigan super PACs face ‘firestorm’ of fines
Detroit News – Jonathan Oosting | Published: 8/28/2017

Attorney Bob LaBrant asked Michigan Secretary of State Ruth Johnson’s office to clarify state rules governing super PAC contributions in the wake of a U.S. Supreme Court ruling in 2012 that opened the doors for unlimited but independent political spending as a form of free speech. Michigan has not updated its campaign finance laws to reflect the decision, and LaBrant argues a little-known state Bureau of Elections action in 2014 could lay the groundwork for a “firestorm” of complaints and fines that would cut across business, labor, conservative, and liberal donors.

Montana
Discounted Sale of US Interior Secretary’s Motor Home Raises Questions
ABC News – Bobcaina Calvin (Associated Press) | Published: 8/28/2017

U.S. Interior Secretary Ryan Zinke’s dormant congressional campaign committee recently sold a 2004 motor home at a steep discount to Montana Sen. Ed Buttrey. But a seemingly ordinary transaction between friends, when seen through the optics of stringent campaign finance laws, can raise a bevy of questions. After learning about the transaction, watchdogs are raising a $25,000 question: Why would Zinke’s campaign committee sell the Kountry Star Freightliner for half the price of its apparent $50,000 market value? The FEC prohibits political committees to sell assets, including campaign vehicles, below fair market value.

Washington
Is Olympia Lawyer the Democrats’ Champion in Complaint-Filing War?
Tacoma News Tribune – Melissa Santos | Published: 8/27/2017

A conservative activist has been taking aim at Democrats and liberal groups for the past year, filing at least 120 complaints saying they have broken Washington state’s campaign finance laws. Now, someone is turning the tables, saying conservative Glen Morgan and a group he leads have committed some of the same financial reporting violations. Walter Smith, an Olympia attorney, said he is concerned that the state’s campaign finance laws are being enforced unevenly due to the volume of complaints Morgan has filed against Democratic candidates in recent months.

State and Federal Communications produces a weekly summary of national news, offering more than 60 articles per week focused on ethics, lobbying, and campaign finance.

Lobbying

“How to Get Rich in Trump’s Washington” by Nicholas Confessore for New York Times

Oregon: “Marijuana Lobbyists Harvest Cash from Bankers, Accountants, Lawyers and Others” by Scott Thistle for Portland Press Herald

Utah: “State Lawmaker Chosen to Head Utah Technology Council Advocacy Group” by Lee Davidson for Salt Lake Tribune

Campaign Finance

Arizona: “Utility Regulators Consider Giving Service Territory to Campaign Donors” by Ryan Randazzo for Arizona Republic

Ethics

“DOJ Is Investigating Whether Uber Broke the Law Against Foreign Bribery” by Elizabeth Dwoskin for Washington Post

“Members of Congress Scoring Personal Loans from Political Supporters” by Nicholas Jahr and Ellen McCreary Ionas for Center for Public Integrity

Alaska: “New Ballot Initiative Targets Legislators’ Per Diem Pay” by James Brooks for Juneau Empire

New York: “State Worker Is Interrogated for Allegedly Letting Someone in the Building” by Rick Karlin for Albany Times Union

Procurement

Missouri: “KCI Contract Selection Delayed by Conflict of Interest Complaint against Justus” by Steve Vockrodt and Lynn Horsley for Kansas City Star

The Los Angeles City Council voted to draft a law that would require contractors doing business with the city to disclose whether they have any contracts connected with the proposed border wall between Mexico and the United States.

The current proposal would not ban companies working on the wall from doing business with Los Angeles, but many council members said it would be a factor they could consider when voting on city contracts.

The City Council voted 13-0 to have city attorneys draft the ordinance. Once drafting is complete, the council will consider the ordinance for approval.

Lobbying

New York: “De Blasio Ally Didn’t Register as Lobbyist Despite Big Push for a Donor” by William Neuman for New York Times

Ethics

“Manafort Agrees to Turn Over Notes That Could Provide New Details on Trump Tower Meeting with Russian Lawyer” by Rosalind Helderman and Karoun Demirjian for Washington Post

“Five Sentenced to Days in Jail for Supreme Court Disruption Over Campaign Finance” by Spencer Hsu for Washington Post

Elections

“Federal Judge Allows Trump Commission’s Nationwide Voter Data Request to Go Forward” by Spencer Hsu for Washington Post

California: “A New Suit Says Lawmakers Broke the Law When They Changed California’s Recall Election Rules” by John Myers for Los Angeles Times

Virginia: “Transgender Woman Challenges Virginia Bathroom Bill Sponsor” by 2017 Sarah Rankin (Associated Press) for Roanoke Times

Legislative Issues

“In Congress, New Fears and New Protections in Wake of Baseball Team Shooting” by Ed O’Keefe for Washington Post

Procurement

Illinois: “New Details Emerge of Former DCFS Head’s Controversial Contracts, Hires” by David Jackson and Gary Marx for Chicago Tribune

Lobbying

“Florida Lobbyist Turning Trump Ties into Mega-Millions” by Rachel Wilson for Center for Public Integrity

Campaign Finance

Canada: “Justin Trudeau Lobbied at Recent Fundraising Event, Critics Raise Flags About New Rules” by Amy Minsky for Global News

Colorado: “Colorado Supreme Court: Douglas County School District didn’t violate campaign laws” by Brian Eason for Denver Post

Ethics

“Justice Dept. Compliance Expert Whose Contract Ended Early Says Trump Conflicts Made Work Feel Hypocritical” by Matt Zapotosky for Washington Post

“As Mueller Builds His Russia Special-Counsel Team, Every Hire Is Under Scrutiny” by Matt Zapotosky for Washington Post

“CNN Story About Source of Trump Wrestling Video Draws Backlash” by Daniel Victor for New York Times

Arizona: “Sue or Be Sued: Indicted developer George Johnson has long history in court” by Michael Kiefer for Arizona Republic

Arkansas: “Former Arkansas Judge’s Bribery Conviction, Prison Sentence Upheld” by Debra Hale-Shelton for Arkansas Online

California: “Appeals Court Throws Out Some Criminal Charges for Angela Spaccia, a Top Official in the Bell Corruption Scandal” by Corina Knoll for Los Angeles Times

Elections

Kansas: “Kobach: Kansas won’t give Social Security info to Kobach-led voter commission at this time” by Bryan Lowry for Kansas City Star

Procurement

Florida: “Florida’s Departing Fiscal Watchdog Used Public Scrutiny as a Weapon” by Mary Ellen Klas (Miami Herald) for Bradenton Herald

Campaign Finance

“This Hyperpartisan Conservative Site Is Connected To Several Pro-Trump PACs” by Craig Silverman Tarini Parti for BuzzFeed News

California: “Contra Costa DA Resigns, Is Now a Convicted Felon” by Nate Gartrell for East Bay Times

Ethics

“Special Counsel Is Investigating Jared Kushner’s Business Dealings” by Sari Horwitz, Matt Zapotosky, and Adam Entous for Washington Post

“How Michael Flynn’s Disdain for Limits Led to a Legal Quagmire” by Nicholas Confessore, Matthew Rosenberg, and Danny Hakim for New York Times

“Office of Government Ethics: Bannon’s waiver ‘problematic'” by Megan Wilson for The Hill

Washington: “Mayor Ed Murray Not Ruling Out Write-In Campaign, As Accuser in Sex-Abuse Lawsuit Vows to Revive Case” by Lewis Kamb and Jim Brunner for Seattle Times

Lobbying

Illinois: “Emanuel Friend, Alderman’s Husband Both Illegally Lobbied Mayor Via His Personal Email: Ethics board” by Bill Ruthhart for Chicago Tribune

New Jersey: “Bringing Balloons Down to Earth: Bill would end mass release” by Scott Fallon for Bergen Record

Procurement

District of Columbia: “D.C. Council Report: Bowser administration favored top donor in contracting” by Aaron Davis for Washington Post

Gov. Larry Hogan signed House Bills 390 and 426 into law. Both bills amend the procurement code.

House Bill 390 requires business to file a public disclosure form if, during a calendar year, a business enters into contracts, leases, or other agreements with the state worth $200,000 or more.

House Bill 426 amends the dollar value of small procurements from $25,000 to $50,000.

Both bills will become effective on October 1, 2017.

Lobbying

“DOJ Deflects Calls for More Foreign Agents Act Transparency” by Kenneth Doyle for Bloomberg BNA

Kansas: “Who Are Kansas Lobbyists Taking to Dinner?” by Bryan Lowry and Kelsey Ryan for Kansas City Star

Texas: “Powerful Abbott Appointee’s Lobbying Sparks Blowback in Legislature” by Jay Root for Texas Tribune

Campaign Finance

Maryland: “FBI Searches Republican Political Consulting Firm in Annapolis” by Fenit Nirappil, Josh Hicks, and Matea Gold for Washington Post

Ethics

“Trump Warning to Comey Prompts Questions on ‘Tapes’” by Peter Baker and Michael Shear for New York Times

District of Columbia: “Bowser Cabinet Official Probed Over Child’s School Placement” by Peter Jamison for Washington Post

Florida: “Ex-Florida Congresswoman Convicted of Taking Money Meant for Charity” by Matt Stevens for New York Times

Rhode Island: “Providence Council President Charged with Embezzlement” by Jennifer Bogdan for Providence Journal

Elections

“Trump Picks Voter ID Advocate for Election Fraud Panel” by Julie Hirschfeld Davis for New York Times

Procurement

New York: “Government Watchdogs Push ‘Clean Contracting’ Reform in Albany” by Rachel Silberstein for Gotham Gazzette