LobbyComply Blog

The U.S. Court of Appeals for the Third Circuit permanently enjoined the Commonwealth’s prohibition on political contributions from gaming-license applicants, licensees, and principals of licensees.

Judge Richard Nygaard upheld the lower court’s conclusion and granted summary judgment in favor of appellees Deon and Hardy.

Judge Nygaard found Section 1513 of the Gaming Act furthers a substantially important state interest in preventing quid pro quo corruption.

However, the restriction imposed on political contributions is unconstitutional because the Commonwealth did not closely draw the scheme to address the issue.

Ethics

National: “Pence Chief of Staff Owns Stocks That Could Conflict with Coronavirus Response” by Tim Mak for National Public Radio

National: “Trump Signs Order That Could Punish Social Media Companies for How They Police Content, Drawing Criticism and Doubts of Legality” by Elizabeth Dwoskin and Tony Romm (Washington Post) for Seattle Times

California: “Corruption Probe Takes Down Another at LA City Hall” by Nathan Solis for Courthouse News Service

Colorado: “John Hickenlooper Must Testify in Ethics Hearing, Commission Rules” by Saja Hindi for Denver Post

Kentucky: “Beshear Makes Appointments to Executive Ethics Commission” by Staff for AP News

North Carolina: “A Confrontation Between NC Senators, a Police Report, and a Secretive Ethics Process” by Jessica Huseman (ProPublica) and Dawn Baumgartner Vaughan (Raleigh News and Observer) for MSN

Legislative Issues

Pennsylvania: “Pa. House Democrats Say They Were in the Dark for a Week About Republican’s Positive Coronavirus” by Julia Terruso (Philadelphia Inquirer) and Angela Couloumbis for Spotlight PA

Lobbying

National: “Veteran Lobbyists Flex Muscles in K Street’s New Normal” by Alex Gangitano for The Hill

Idaho: “Ada Co. GOP Chair Used Party Funds on Private Expense, Allowed Questionable Audit” by James Dawson for Boise State Public Radio

Due to the COVID-19 pandemic, the General Assembly has canceled legislative sessions for the week of June 1 to June 5.

Committee hearings have been scheduled in both chambers of the General Assembly and will be live streamed at www.rilegislature.gov/CapTV.

During this time, the State House building will remain closed.

Members of the public wishing to testify on any of the matters before the committees may submit written testimony.

The General Assembly is scheduled to meet on Tuesday, June 9.

This does not affect lobbyist reporting.

The Chicago Board of Ethics is further extending the first quarterly report filing deadline from June 1 to July 1 due to the COVID-19 pandemic.

First quarter reports cover the January 1 to March 31 period and must be filed even if there was no activity.

In addition, registered lobbyists now have until December 31st to complete their annual mandatory ethics training.

The board expects additional amendments to the city’s lobbying laws later in 2020.

National/Federal

‘A Game-Changer’: Pandemic forces shift in black voter outreach
Roll Call – Bridgett Bowman | Published: 5/21/2020

Success in November for Democrats may depend on turning out black voters, but a history of facing voter suppression has fueled skepticism among African Americans about voting by mail and a preference to vote in person. Strategies to ensure black turnout are being redrawn as Democratic groups and grassroots organizations test messages in real time to determine how best to educate African American voters reluctant about casting mail-in ballots and reassure them it is safe and secure. It is a three-front battle, playing out in the courts, in federal and state Legislatures, and on the campaign trail.

America’s Economic Pain Arrives on K Street
Politico – Theodoric Meyer and Daniel Lippman | Published: 5/23/2020

A recent survey conducted by the American Society of Association Executives – essentially a trade group for people who lead trade groups – found 35 percent of trade groups estimated they would lose at least a quarter of their revenue because of canceled events and conferences. The cuts have hit trade groups even as many of their lobbyists have been busier than ever, hustling to secure a piece of the trillions of dollars in coronavirus aid for their members. The cuts show Washington’s influence industry is not immune to the economic pain afflicting much of the rest of the country. While much of K Street has experienced a boom as companies have rushed to hire lobbyists to help them secure relief loans, others are hurting.

Appeals Court Denies Lobbyists’ Efforts to Access Small-Business Loan Program
The Hill – Harper Neidig | Published: 5/26/2020

A federal appeals court rejected an effort by a group of lobbyists and political consultants to obtain access to the Paycheck Protection Program and its emergency loans for small businesses hit by the coronavirus pandemic. A three-judge panel on the District of Columbia Circuit Court of Appeals upheld a federal judge’s decision not to grant a request by the American Association of Political Consultants for a preliminary injunction. The panel rejected the group’s argument that excluding lobbyists and political consultants from the loans violated the First Amendment.

Appeals Court Ruling Suggests Little Legal Traction for Trump’s Anti-Twitter Campaign
Politico – Josh Gerstein | Published: 5/27/2020

A ruling that emerged from a federal appeals court recently is strong evidence the courts are unlikely to be receptive to President Trump’s claims that he and his political supporters are being silenced by social media platforms like Twitter. The U.S. Court of Appeals for the District of Columbia Circuit rejected a lawsuit the conservative legal organization Freedom Watch and right-wing provocateur Laura Loomer filed against four major technology companies: Google, Facebook, Twitter, and Apple. Platforms have banned Loomer, citing anti-Muslim statements. The appeals court judges said despite the companies’ power, they cannot violate the First Amendment because it regulates only governments, not the private sector.

As Residents Perish, Nursing Homes Fight for Protection from Lawsuits
Politico – Maggie Severns and Rachel Roubien | Published: 5/26/2020

As an unprecedented catastrophe unfolds in which more than 28,000 people have died of Covid-19 in care facilities, the nursing home industry is responding with an unprecedented action of its own: using its multi-million dollar lobbying machine to secure protections from liability in lawsuits. The industry is one of the lobbying world’s quiet powerhouses. The state actions came after it spent tens of millions of dollars in lobbying and other advocacy per year. At the federal level, the industry has spent more than $4 million on lobbying over the past year, employing more than a dozen full-time lobbyists and drawing on an army of contract lobbyists.

As Trump Removes Federal Watchdogs, Some Loyalists Replacing Them Have ‘Preposterous’ Conflicts
MSN – Lisa Rein and Tom Hamburger (Washington Post) | Published: 5/24/2020

For the first time since the system was created in the aftermath of the Watergate scandal, inspectors general find themselves under systematic attack from the president, putting independent oversight of federal spending and operations at risk. Inspectors general, some in acting roles to begin with, have been fired and demoted with no notice, leaving their staffs in disarray, multiple inspectors general said. Adding to their alarm, several White House nominees awaiting Senate vetting for permanent roles do not meet traditional qualifications for the job. Some say the 40-year era of independent oversight of the executive branch is under threat more than ever.

‘Dark Money’ Groups Dodge Reporting Requirement in New Regulations
Politico – Toby Eckert | Published: 5/26/2020

The Treasury Department and IRS released final regulations under which certain tax-exempt groups will no longer be required to provide the names and addresses of major donors on annual returns filed with the IRS. The rules will affect groups organized under 501(c)(4) of the tax code. Those organizations have no legal obligation to publicly disclose their donors’ identities, but they previously had to give the IRS the names and addresses of donors who gave them more than $5,000. Under the new regulations, the groups will not have to provide the information to the IRS at all.

Facebook Ran Multi-Year Charm Offensive to Woo State Prosecutors
Bloomberg Law – Naomi Nix | Published: 5/27/2020

Facebook went to great lengths to develop friendly relationships with powerful state prosecutors who could use their investigative and enforcement powers in ways that could harm the company’s revenue growth. While state attorneys general are law enforcement officials, they are also politicians, and many see the post as a stepping-stone to higher office. Corporate lobbyists often donate to their campaigns and meet with them at legal conferences, while also pressing their case on state regulatory issues. In the end, the company’s charm offensive met with mixed results: most of those state attorneys general are now investigating Facebook for possible antitrust violations.

Horsford’s Extramarital Affair with Former Senate Staffer Shows How Narrow House Rules Are
Roll Call – Chris Marquette | Published: 5/21/2020

U.S. Rep. Steven Horsford had an extramarital affair with a former Senate intern spanning several years, an example that highlights how narrow the House prohibition against lawmakers sleeping with congressional staffers is. Gabriela Linder said the affair began in 2009 and continued sporadically until 2019. When they met, Horsford was a state senator in Nevada; Linder worked as an intern for former Senate Majority Leader Harry Reid. Horsford did not begin his first stint representing Nevada’s 4th Congressional District until 2013, after Linder stopped working for Reid. If Horsford were to have had a sexual relationship with Linder while he was a member of Congress and she was working in the Senate, although there is no indication he did, it would have been permissible under House rules.

Justice Dept. Ends Inquiries Into 3 Senators’ Stock Trades
New York Times – Katie Benner and Nicholas Fandos | Published: 5/26/2020

The Justice Department notified U.S. Sens. Kelly Loeffler, James Inhofe, and Dianne Feinstein it will not pursue insider trading charges against them after an investigation into stock transactions from the early days of the coronavirus pandemic did not find sufficient evidence that they had broken the law. All three had sold substantial amounts of stock when lawmakers were being briefed on the coronavirus threat but before the pandemic began roiling financial markets or was fully understood by the public. Law enforcement officials appear to still be investigating Sen. Richard Burr, whose own stock sales have drawn scrutiny from the Justice Department and Securities and Exchange Commission.

Lawmakers Press GSA on Trump Hotel’s Request for Financial Relief During Pandemic
Government Executive – Ccourtney Buble | Published: 5/19/2020

House Democrats are pressing the General Services Administration (GSA) for information on the Trump Organization’s request for rent relief during the pandemic for its hotel in a federally leased building. The Trump Organization, for which President Trump’s sons run the daily operations, asked the GSA to treat it like other federal tenants and provide financial relief during the pandemic. Following the news about the request for financial relief, two House committees pressed the GSA for information on the potential conflict-of-interest. The lawmakers said the president is “serving as both tenant and landlord” for the hotel. They also pointed out the hotel is banned from receiving relief loans from the CARES Act under a conflict-of-interest provision.

Lobbyist Register to Be Tightened After Monsanto Case
EU Observer – Nikolaj Nielson | Published: 5/27/2020

Updated European Union (EU) transparency rules set for the end of this year means lobbyists will have to declare much more accurate, and thus likely larger, figures on what they spend to influence decision-making. The EU’s joint transparency register is shared between the European Commission and the European Parliament and lists thousands of entities that work to influence EU legislation. The authority that oversees the register recently announced in a letter it would impose clearer rules to make sure lobbyists do not skirt their reporting obligations.

Republicans Sue Pelosi to Block House Proxy Voting During Pandemic
New York Times – Nicholas Fandos and Michael Schmidt | Published: 5/26/2020

Republican leaders sued Speaker Nancy Pelosi and top congressional officials to block the U.S. House from using a proxy voting system set up by Democrats to allow for remote legislating during the coronavirus pandemic, calling it unconstitutional. Republicans argued new rules allowing lawmakers to vote from afar during the coronavirus outbreak would be the end of Congress as it was envisioned by the nation’s founders. The lawsuit will face an uphill battle in the courts, where judges have been reluctant to second-guess Congress’s ability to set its own rules. But it fits into a broader push by Republicans to put a cloud of suspicion over Democratic efforts to find alternative ways to vote during the pandemic, both in the House and in elections across the country.

Trump Pushes a Conspiracy Theory That Falsely Accuses a TV Host of Murder
MSN – Peter Baker and Maggie Astor (New York Times) | Published: 5/26/2020

President Trump smeared a prominent television host from the Rose Garden with an unfounded allegation of murder. Trump all but accused Joe Scarborough, a former Republican member of Congress who now hosts the MSNBC show “Morning Joe,” of killing a staff member in 2001 even though he was 800 miles away at the time and the police ruled her death an accident. The president’s charge amplified a series of Twitter messages in recent days that have anguished the family of Lori Klausutis, who died when she suffered a heart condition that caused her to fall and hit her head on a desk. Trump doubled down on the false accusation even after Timothy Klausutis pleaded unsuccessfully for Twitter to take down the posts about his late wife because they were causing her family such pain.

Twitter Labels Trump’s Tweets with a Fact Check for the First Time
MSN – Elizabeth Dwoskin (Washington Post) | Published: 5/26/2020

For the first time, Twitter called tweets from Donald Trump “potentially misleading,” a decision that prompted the president to accuse the company of election meddling. Twitter highlighted two of Trump’s tweets that falsely claimed mail-in ballots would lead to widespread voter fraud, appending a message the company introduced to combat misinformation and disputed or unverified claims. It linked to a fact-check page filled with further links and summaries of news articles debunking the assertion. Twitter, which has long grappled with how to address Trump’s tweets, may now find itself under even greater pressure than before to act in a consistent and transparent manner.

Wealthiest Hospitals Got Billions in Bailout for Struggling Health Providers
MSN – Jesse Drucker, Jessica Silver-Greenberg, and Sara Kliff (New York Times) | Published: 5/24/2020

The Providence Health System, one of the country’s largest and richest hospital chains, received at least $509 million in government funds, one of many wealthy beneficiaries of a federal program that is supposed to prevent health care providers from capsizing during the coronavirus pandemic. The Department of Health and Human Services has disbursed $72 billion in grants since April to hospitals and other health care providers through the bailout program. So far, the riches are flowing in large part to hospitals that had already built up deep financial reserves to help them withstand an economic storm. Smaller, poorer hospitals are receiving tiny amounts of federal aid by comparison.

From the States and Municipalities

Arizona – NoDDC PAC Violated Campaign Laws, Lawyer Rules
Scottsdale Progress – Wayne Schutsky | Published: 5/27/2020

The NoDDC PAC and its co-founder Jason Alexander committed multiple campaign finance law violations, according to a report by Phoenix City Attorney Cris Meyer, who proposed 1 $3,000 fine. Meyer found Alexander and NoDDC failed to report some payments over $250 and legal expenses, including a $5,000 city fine for a previous campaign violation that was paid for by Alexander’s personal account and then reimbursed through the PAC.

Arkansas – Ruling Ends Wait for Political Donors
Arkansas Democrat-Gazette – Linda Satter | Published: 5/21/2020

A federal judge made his temporary injunction permanent in allowing Arkansas candidates for statewide office to accept campaign donations more than two years before an election. U.S. District Court Judge James Moody Jr.’s move reinforced his initial ruling that it is unconstitutional for the state to bar those contributions. In January, a three-judge panel of the Eighth U.S. Circuit Court of Appeals upheld Moody’s decision to grant a preliminary injunction against the state’s “blackout period” for accepting political donations

California – Blind Spot: Lobbying behind California coronavirus contracts can stay secret
CalMatters – Laurel Rosenhall | Published: 5/26/2020

California law, despite all the disclosures it demands from lobbyists, does not require they report procurement work – including the $3 billion committed so far to masks, ventilators, and other supplies related to the coronavirus pandemic. As the state has signed hundreds of no-bid procurement contracts over the last two months, the public has very little information about the players involved in landing these deals and how much they are being paid. No lobbyist has been publicly accused of wrongdoing in connection with these contracts. A bill to require lobbyists to disclose procurement clients was vetoed by then-Gov. Jerry Brown in 2016.

Colorado – Hickenlooper Says He Won’t Appear Before Colorado Ethics Body for Video Trial in June
Denver Post – Alex Burness | Published: 5/22/2020

Former Colorado Gov. John Hickenlooper, who is running for the U.S. Senate, says he will not appear for his own ethics trial if it proceeds by video, as currently scheduled. Hickenlooper’s attorney, Marc Grueskin, said their camp is prepared to sue in District Court if the state Independent Ethics Commission does not delay the hearing and allow for a new one at which Hickenlooper can consult in real time with his attorney. Hickenlooper was accused in 2018 of violating Amendment 41 of the Colorado Constitution, which bars state employees and officials from accepting gifts worth more than $53 per year.

Connecticut – Dalios Pull Out of State Education Partnership, Attack GOP Reps
Connecticut Post – Kaitlyn Krasselt | Published: 5/20/2020

Barbara and Ray Dalio are exiting the Partnership for Connecticut, ending the arrangement that was touted in 2019 as a unique way to reach troubled youths, although they will maintain their commitment to the cause with at least $100 million. The partnership was plagued by problems almost from the start including criticism that Gov. Ned Lamont and the General Assembly made it exempt from Freedom of Information and state ethics laws.

Florida – Federal Judge Guts Florida Law Requiring Felons to Pay Fines Before They Can Vote
MSN – Amy Gardner (Washington Post) | Published: 5/24/2020

A federal judge eviscerated a Florida law requiring felons to pay all court fines and fees before they can register to vote, clearing the way for thousands of Floridians to register in time for the November presidential election. Republican lawmakers and Gov. Ron DeSantis pushed the measure after voters approved a constitutional amendment in 2018 to expand voting rights to felons who have completed “all terms of their sentence including probation and parole.” The law’s backers said it was necessary to clarify the amendment, while critics said Republicans were trying to limit the effects of what would have been the largest expansion of the state’s electorate since poll taxes and literacy tests were outlawed during the civil rights era.

Florida – Lobbyist Tied to Curry, JEA Bidder Paid City Hall’s Bar Tab at Jaguars Games
Florida Times Union – Staff | Published: 5/22/2020

Jacksonville Mayor Lenny Curry’s administration allowed a company owned by his political strategist Tim Baker, who lobbied for companies seeking money from the city and was contracted by a company that tried to purchase JEA, to cover the bar tab at City Hall’s private suite at TIAA Bank Field during the last two football seasons. Taxpayers purchased more than $13,000 in food that was ordered for city officials and their guests during the last two seasons, but they did not pay for the $4,642 worth of alcohol ordered. Instead, the stadium’s concession vendor discounted 50 percent of the alcohol purchases, and the remaining $2,300 was paid for by Bold City Strategic Partners, a firm owned by Baker.

Illinois – Illinois House Speaker Michael Madigan Wins Latest Round in Suit Alleging Sham Candidates
Chicago Tribune – Ray Long | Published: 5/23/2020

Illinois House Speaker Michael Madigan won a federal court victory as he worked on wrapping up the shortened legislative session in Springfield. U.S. District Court Judge Matthew Kennelly denied a motion asking for him to reconsider his decision to dismiss a lawsuit that contended Madigan conspired to put up two “sham” candidates with Hispanic names to confuse voters in a 2016 Democratic primary.

Kentucky – Citing Misuse of Funds, Kentucky Auditor Refers 3 County Attorney Offices to Law Enforcement
Louisville Courier Journal – Joe Sonka | Published: 5/21/2020

A report from state Auditor Mike Harmon identifies possible misuse of public funds in the offices of three county attorneys in Kentucky, including a lieutenant governor candidate in last year’s primary election. Harmon is referring his findings to the FBI and state Attorney General. The report found that of the $134,500 in bonuses Lawrence County Attorney Michael Hogan gave to his staff from delinquent tax fees from 2017 to 2019, 94 percent was paid to his wife, a secretary in the office. The audit report also found new information related to the former supervisor of the Boyd County Attorney’s Child Support Enforcement office, who was indicted on 77 charges last year relating to more than $113,000 allegedly fraudulently taken over a seven-year period.

Louisiana – Judges’ Financial Disclosure Now Easily Available to the Public
KPLC – Staff | Published: 5/26/2020

For years, the public has been able to access financial disclosures of elected officials except for judges. But after being nudged by a watchdog group, the state Supreme Court is making such information more easily available to the public. The information is now easily searchable on the high court’s web site using the judge’s name or judicial district, while other elected state officials are on the state Board of Ethics site.

Maine – Ethics Panel Wants to Look at Anti-Corridor Group’s Donors
AP News – Staff | Published: 5/23/2020

A group that opposes a hydropower transmission corridor in Maine must disclose financial information so the state ethics commission can continue investigating whether campaign finance laws were broken. Stop the Corridor spent more than $1 million on television and Facebook ads opposing the 145-mile transmission line earlier this year. But it never disclosed the source of the money.

Maryland – Extra-Long Primary Season with Baltimore Mayoral Voters Behind Closed Doors Sees Spending on Mailers, Ads
Baltimore Sun – Talia Richman | Published: 5/26/2020

Under normal circumstances, Baltimore likely would know already who its next mayor is. The deep-blue city’s Democratic primary was supposed to be a month ago. But the coronavirus pandemic delayed the election, and that left candidates seeking funding for another 35 days of expensive campaigning. While earlier finance reports were peppered with $6,000 donations, the maximum amount a donor can directly give a candidate under state law, no candidate received more than a handful of such contributions during the most recent filing period. “If you were a low-financed candidates that was really going to be grassroots, you’re really stuck in a bad position [because of the pandemic],” said Roger Hartley, dean of the University of Baltimore’s College of Public Affairs. “Now you need more money because you have to be able to able to appeal on the airwaves.”

Michigan – Feds Charge Ex-Macomb Public Works Boss Marrocco in Extortion Indictment
Detroit News – Robert Snell | Published: 5/27/2020

Federal prosecutors unsealed an indictment against former Macomb County Public Works Commissioner Anthony Marrocco, alleging he teamed with an underling to extort county contractors out of hundreds of thousands of dollars. The indictment portrays Marrocco as a tough-talking bully and a political kingmaker during a decades-long reign. He threatening to revoke municipal contracts, withhold permits and, in May 2016, removed an unidentified excavation firm from a multi-million-dollar sinkhole repair project because the company held a fundraiser for Marrocco’s political opponent, according to the government. Builders and contractors bought hundreds of thousands of dollars’ worth of tickets to fundraisers and some of the money financed Marrocco’s luxury lifestyle, prosecutors said.

Michigan – Where Coronavirus Help on Facebook Is ‘Inherently Political’
New York Times – Jennifer Medina | Published: 5/28/2020

The coronavirus pandemic has unmoored already fragile institutions across the country, forcing many Americans to turn to one another for help instead of to the government or nonprofit organizations. With the belief that the system is so broken that assistance will never come, hundreds have formed mutual aid societies, designed to allow people to find help themselves. Though the groups’ efforts vary widely, similar attempts to offer assistance have formed in dozens of states. The groups are something of a throwback; such networks were popular in the heydays of communal activity, in the early 20th century and again in the 1960s and 1970s. The newest crop has been formed largely by young progressives, and their proliferation points to a new kind of organizing that could reshape politics long after the pandemic.

Mississippi – Mississippi Lawmakers Approved $300M in Small Business Grants. Can They Apply for the Money?
Jackson Clarion-Ledger – Luke Ramseth | Published: 5/22/2020

The Mississippi Legislature passed a bipartisan bill that commits $300 million in federal coronavirus relief funds to small businesses. But can lawmakers who operate small businesses themselves apply for the money? That is the question Lt. Gov. Delbert Hosemann wants the state Ethics Commission to answer. The legislation specifically said lobbyists, businesses that hired a lobbyist, or ones involved in partisan political activities, could not apply for the program. But the bill did not say anything about the people who passed the bill.

Missouri – No Lobbyist Gifts for State Lawmakers, But Local Officials in Missouri Still Get Freebies
St. Louis Post-Dispatch – Kurt Erickson | Published: 5/21/2020

Although Missouri lawmakers are banned from accepting all but the smallest gifts from lobbyists, local officials continue to rake in freebies from companies doing business with cities and counties. A review of reports filed with state ethics regulators shows tickets to St. Louis Cardinals and Blues games remain a popular staple with lobbyists and local officials.

Missouri – Suit Against Missouri Governor Over Public Records Gets New Life
St. Louis Post-Dispatch – Kurt Erickson | Published: 5/26/2020

A state appeals court has revived a lawsuit against Missouri Gov. Mike Parson alleging his office violated the state’s public records laws. At issue is a 2018 lawsuit filed by Elad Gross, who is running for state attorney general. The suit accused Parson’s administration of breaking the Sunshine Law by requiring Gross pay more than $3,600 for a cache of records relating to former Gov. Eric Greitens, who left office under a cloud of scandal. In tossing the suit Cole County Circuit Court Judge Patricia Joyce said Parson’s administration, under Missouri law, had the discretion to charge or waive fees. But the appeals court said Joyce erred on five of the 10 points Gross made during an appeal.

Nebraska – Nebraska Sees Increase in Lobbyists, Spending on Lobbyists
AP News – Staff | Published: 5/22/2020

Lobbyists in Nebraska raked in more cash than ever last year and more people joined their ranks to try to influence public officials, according to a new report. Lobbyists collected $19.4 million in gross earnings in 2019, Common Cause Nebraska said. The watchdog group said the total is a record, up from $17.8 million in 2018.

New York – De Blasio’s NYC Campaign Account Hit with $16K Fine by Regulator
New York Post – Nolan Hicks | Published: 5/23/2020

The Campaign Finance Board hit New York City Mayor Bill de Blasio’s campaign with a $16,000 fine for violating a slew of regulations, including failing to promptly return excessive contributions from individuals with business before City Hall. It also determined de Blasio’s reelection effort broke other rules, including failing to report expenses or in-kind contributions that came from hosting 22 fundraisers, failing to disclose a dozen donations from late in the campaign cycle on required daily reports, and shelling out $6,700 in expenses it could not prove were in “furtherance of the campaign.”

Oklahoma – Bill Could Hide Donor and Lobbyist Info from the Public
The Express-News – Ben Felder (The Frontier) | Published: 5/19/2020

A bill pushed through the Oklahoma Legislature in the final days of the session could prevent the public from knowing who is donating to PACs or who lobbyists are working for, a move that would bring significant secrecy to the legislative process. House Bill 3613 could result in the state’s electronic campaign reporting system being taken offline, according to Ashley Kemp, executive director of the state Ethics Commission. The bill would prevent state agencies from collecting any information that “identifies a person as a member, supporter, or volunteer of, or donor of financial or nonfinancial support to, any entity organized pursuant to Section 501(c) of the United States Internal Revenue Code.”

Rhode Island – R.I. Senate Leaders Propose Allowing Email Voting
Providence Journal – Patrhick Anderson | Published: 5/26/2020

More than two months after Rhode Island General Assembly sessions were put on hold by the coronavirus pandemic, the state Senate is moving toward allowing lawmakers to vote remotely. A resolution sponsored by Senate Democratic leaders would give lawmakers who do not feel comfortable gathering at the statehouse the option of voting by email.

Washington – Wash. Campaign Finance Watchdog Blocks Some Online Access in Wake of Unemployment Fraud
Oregon Public Broadcasting – Austin Jenkins | Published: 5/26/2020

At the request of a powerful state senator who warned of “foreign intrusion,” the Washington Public Disclosure Commission (PDC) temporarily suspended online access to the personal financial statements of elected officials, candidates, and other public officials. The F-1 statements, as they are known, include information about an individual’s income, assets, property holdings, debt, and business associations. Sen. Sam Hunt said he had both warned that the “PDC is being assaulted by international data thieves from China, Russia, and Germany.”

Washington DC – Jack Evans Fined $35,000 by Ethics Board as Voters Weigh Returning Him to Office
Washington Post – Fenit Nirappil | Published: 5/22/2020

The District of Columbia’s ethics board fined former city council member Jack Evans $35,000 for violations related to his outside employment while in office, as voting started in the primary election where Evans is attempting to reclaim his old seat. The negotiated settlement wraps up a probe that started more than two years ago scrutinizing the ties between Evans and businesses that employed him as a lawyer or consultant. The board found Evans violated the city code of conduct governing conflicts-of-interest.

Wisconsin – Wisconsin Elections Commission Votes to Send Absentee Ballot Applications to 2.7 Million Voters
Wisconsin Public Radio – Shawn Johnson | Published: 5/27/2020

The state would send about 2.7 million registered voters absentee ballot applications under a motion approved by the Wisconsin Elections Commission. The state would send absentee ballot applications to nearly all registered voters to prepare for Wisconsin’s November election. Roughly 62 percent of all votes in Wisconsin’s April election were cast by mail as voters heeded advice from both state and federal government to stay home to slow the spread of COVID-19. Turnout for the November election is expected to double that of the spring election.

The Illinois Legislature adjourned on May 24 at the end of a special session that started on May 20.

Initially, the Senate met at the Capitol and the House at the Bank of Springfield Center to accommodate social distancing due to COVID-19 concerns.

The abbreviated special session focused mainly on budget issues and COVID-19 related legislation.

No bill permitting the Legislature to convene virtually was passed during this session.

Therefore, the Legislature will convene in person for the veto session scheduled to begin November 17.

The Arizona Legislature adjourned sine die on May 26 after the Senate’s swift move to adjourn was approved.

The Senate had voted to end the session when it convened previously on May 8.

However, this vote was met with opposition by Republican lawmakers.

The sine die adjournment leaves hundreds of bills dead that had been progressing through the Capitol before lawmakers postponed the session in March.

Gov. Doug Ducey is expected to call lawmakers back to the Capitol for a special session in the coming weeks.

In this session they will deal with coronavirus-related legislation and the state budget.

Campaign Finance

National: “‘Dark Money’ Groups Dodge Reporting Requirement in New Regulations” by Toby Eckert for Politico

Elections

National: “‘A Game-Changer’: Pandemic forces shift in black voter outreach” by Bridgett Bowman for Roll Call

Ethics

National: “Trump Pushes a Conspiracy Theory That Falsely Accuses a TV Host of Murder” by Peter Baker and Maggie Astor (New York Times) for MSN

National: “Twitter Labels Trump’s Tweets with a Fact Check for the First Time” by Elizabeth Dwoskin (Washington Post) for MSN

National: “Justice Dept. Ends Inquiries Into 3 Senators’ Stock Trades” by Katie Benner and Nicholas Fandos for New York Times

Colorado: “Hickenlooper Says He Won’t Appear Before Colorado Ethics Body for Video Trial in June” by Alex Burness for Denver Post

Connecticut: “Dalios Pull Out of State Education Partnership, Attack GOP Reps” by Kaitlyn Krasselt for Connecticut Post

Legislative Issues

National: “Republicans Sue Pelosi to Block House Proxy Voting During Pandemic” by Nicholas Fandos and Michael Schmidt for New York Times

Lobbying

Europe: “Lobbyist Register to Be Tightened After Monsanto Case” by Nikolaj Nielson for EU Observer

National: “As Residents Perish, Nursing Homes Fight for Protection from Lawsuits” by Maggie Severns and Rachel Roubien for Politico

National: “Facebook Ran Multi-Year Charm Offensive to Woo State Prosecutors” by Naomi Nix for Bloomberg Law

On May 28, new Internal Revenue Service (IRS) regulations allowing certain tax-exempt organizations to refrain from reporting the names and addresses of contributors on their annual reports to the IRS will take effect and be published in the U.S. Federal Register.

 

This exemption from reporting applies to tax-exempt organizations generally not receiving tax-deductible contributions, such as labor unions, volunteer fire departments, issue-advocacy groups, local chambers of commerce, veterans’ groups, and community service clubs. These organizations are still required to continue to collect and keep the donor information and to make it available to the IRS upon its request. This change does not affect the information required to be reported by charities primarily receiving tax-deductible contributions, such as 501(c)(3) organizations, certain nonexempt private foundations, or 527 political organizations.

 

The Treasury Department and IRS had given three primary reasons for the change: the IRS makes no systematic use of this information collected by these organizations; the policy reduces the risk of inadvertent disclosure or misuse of confidential information; and the policy saves both private and government resources.

 

Previously, the IRS had issued a guidance to this effect, but on July 30, 2019, the IRS guidance limiting these disclosure requirements was set aside by a federal judge. In Bullock v. IRS, the U.S. District Court District of Montana (Great Falls) found the IRS violated the Administrative Procedure Act by not providing notice and allowing a public comment period before the guidance was issued. It predicated this decision by finding the guidance was a legislative rule. Subsequently, on September 6, the IRS issued a notice of a proposed rulemaking and accepted public comment.

Campaign Finance

New York: “De Blasio’s NYC Campaign Account Hit with $16K Fine by Regulator” by Nolan Hicks for New York Post

Elections

Illinois: “Illinois House Speaker Michael Madigan Wins Latest Round in Suit Alleging Sham Candidates” by Ray Long for Chicago Tribune

Ethics

National: “Wealthiest Hospitals Got Billions in Bailout for Struggling Health Providers” by Jesse Drucker, Jessica Silver-Greenberg, and Sara Kliff (New York Times) for MSN

National: “Lawmakers Press GSA on Trump Hotel’s Request for Financial Relief During Pandemic” by Ccourtney Buble for Government Executive

Mississippi: “Mississippi Lawmakers Approved $300M in Small Business Grants. Can They Apply for the Money?” by Luke Ramseth for Jackson Clarion-Ledger

Lobbying

National: “Appeals Court Denies Lobbyists’ Efforts to Access Small-Business Loan Program” by Harper Neidig for The Hill

California: “Blind Spot: Lobbying behind California coronavirus contracts can stay secret” by Laurel Rosenhall for CalMatters

Florida: “Lobbyist Tied to Curry, JEA Bidder Paid City Hall’s Bar Tab at Jaguars Games” by Staff for Florida Times Union

Nebraska: “Nebraska Sees Increase in Lobbyists, Spending on Lobbyists” by Staff for AP News

The Hawaii State Ethics Commission voted to accept new testimony prior to its public hearing on May 21.

The hearing is specifically concerning proposed amendments to the state lobbying and gift rules.

In order to consider the new testimony, the Commission deferred the matter to its next meeting scheduled for mid-June.

The proposals include:

• Clarifications as to what activities constitute lobbying
• Exclusions from lobbyist registration requirements
• A requirement that expenditures be reported on an accrual rather than cash basis.

Additionally, the proposals would amend prohibitions on certain kinds of gifts, valuation of gifts, and gift disclosure statements.

Once the Commission approves the rules, the rules are subject to approval by the Department of the Attorney General and the governor. Afterward, they will be posted with the Office of the Lieutenant Governor for a period of 10 days before becoming effective.

New Mexico Governor Michelle Lujan Grisham targeted June 18 for the start of a special legislative session.

The session will be held to adjust the state budget amid a major hit to expected revenue related to the COVID-19 pandemic.

Additionally, Governor Grisham hopes to reach bipartisan agreement on financial measures.

As of now, the state is on track to re-open thousands of more businesses and services on June 1.

The legislative session is expected to span several days.

A federal judge has made his temporary injunction permanent in allowing Arkansas candidates for statewide office to accept campaign contributions more than two years before an election.

U.S. District Judge James Moody Jr. reinforced his initial ruling that it is unconstitutional for the state to ban contributions for state office candidates more than two years before an election.

In January, a three-judge panel of the 8^th U.S. Circuit Court of Appeals upheld Moody’s decision to grant a preliminary injunction against the state’s blackout period for accepting campaign contributions.

Campaign Finance

Arkansas: “Ruling Ends Wait for Political Donors” by Linda Satter for Arkansas Democrat-Gazette

Maine: “Ethics Panel Wants to Look at Anti-Corridor Group’s Donors” by Staff for AP News

Elections

Florida: “Federal Judge Guts Florida Law Requiring Felons to Pay Fines Before They Can Vote” by Amy Gardner (Washington Post) for MSN

Ethics

National: “Horsford’s Extramarital Affair with Former Senate Staffer Shows How Narrow House Rules Are” by Chris Marquette for Roll Call

National: “As Trump Removes Federal Watchdogs, Some Loyalists Replacing Them Have ‘Preposterous’ Conflicts” by Lisa Rein and Tom Hamburger (Washington Post) for MSN

Kentucky: “Citing Misuse of Funds, Kentucky Auditor Refers 3 County Attorney Offices to Law Enforcement” by Joe Sonka for Louisville Courier Journal

Washington DC: “Jack Evans Fined $35,000 by Ethics Board as Voters Weigh Returning Him to Office” by Fenit Nirappil for Washington Post

Lobbying

National: “America’s Economic Pain Arrives on K Street” by Theodoric Meyer and Daniel Lippman for Politico

Missouri: “No Lobbyist Gifts for State Lawmakers, But Local Officials in Missouri Still Get Freebies” by Kurt Erickson for St. Louis Post-Dispatch