Campaign Finance

National: “Mueller Wants to Know About 2016 Trump Campaign’s Ties to NRA” by Sara Murray for CNN

Colorado: “Colorado Secretary of State Jena Griswold Takes Aim at ‘Massive Secret Political Spending’” by Alex Burness for Colorado Independent

New York: “With De Blasio in Debt, City Council Considers Bill to Allow ‘Legal Defense Trusts’” by Andrew Millman for Gotham Gazette

Elections

National: “Lawmakers Eye Changes to Ballot Measures – Passed and Future” by Alan Greenblatt for Governing

National: “Giuliani Now Says His Moscow Plan Remarks Were ‘Hypothetical’” by Seung Min Kim (Washington Post) for San Jose Mercury News

North Carolina: “North Carolina Judge Declines to Certify 9th District Congressional Race as Fraud Investigation Continues” by Amy Gardner for Washington Post

Legislative Issues

New Mexico: “New Session, New Faces in Roundhouse” by Dan McKay for Albuquerque Journal

Lobbying

Illinois: “Former Ald. Will Burns Fined $5,000 in Ethics Settlement” by Fran Spielman for Chicago Sun-Times

Rep. John Kavanagh introduced House Bill 2038 to the Arizona Legislature.

The bill defines “hosted event” to include an event or function where one or more state officers or employees are invited and attend organized and paid for by a principal.

Event or function includes a party, dinner, or luncheon, but does not include an athletic event or other entertainment.

A hosted event must be reported by the actual cost incurred for food, beverage, and other tangible benefits but do not include the overall sponsorship amount incurred by the principal or lobbyist.

Opponents to the bill say only reporting the food and beverage amount and not including the price of the ticket to the event is misleading.

A Chicago-based real estate firm is challenging Illinois pay-to-play law in federal court as unconstitutional after losing a contract when its founder made contributions to gubernatorial candidates.

Plaintiffs, The Habitat Company and its founder Daniel Levin, lost a one-year management contract for a mixed-income building after Chief Procurement Officer Ellen Daley of the Illinois Procurement Office notified the firm that Levin’s campaign contributions to gubernatorial candidates in 2018 violated the state procurement code.

In Illinois, pay-to-play law prohibits government contractors or affiliated persons from making any contribution to a political committee established to promote the candidacy of the officeholder responsible for awarding the contracts.

The complaint alleges constitutional violations of Levin’s First Amendment rights of speech and association and Fourteenth Amendment rights of equal protection and due process of law.

Plaintiffs seek a temporary restraining order and a preliminary injunction to void Daley’s decision and prevent the Illinois Housing Development Authority from entering into a property management contract with another company.

Three lobbying bills have been introduced in New Mexico.

House Bill 131 would require a post-session lobbying report due after the Legislature adjourns.

House Bill 140 would require periodic reports with estimated upcoming lobbying expenses for the year as well as actual previous expenses incurred.

Senate Bill 191 amends the current expenditure reporting threshold to include individual expenditures of less than $100 by lobbyists or the employer.

Gov. Greg Abbott has set a special election for House District 125 to occur on February 12.

State Rep. Justin Rodriguez resigned after being appointed as a Bexar County commissioner.

Early voting begins on January 28.

The Los Angeles Ethics Commission announced it will be taking another look at a proposal to ban certain developer contributions to elected officials and candidates after Los Angeles City Council members revived the idea.

Six council-members reintroduced the new motion last week, with Council President Herb Wesson seconding it.

The motion prohibits developers from making political contributions to city elected officials or candidates from the date of application for the property is filed until 12 months following the final resolution of the application.

The Ethics Commission also announced it could include restrictions on nonindividual entity contributors and payments made by third parties at the behest of elected officials.

Campaign Finance

National: GOP Reaches Landmark Agreement to Juice Small-Dollar Fundraising by Alex Isenstadt for Politico

District of Columbia: D.C. ‘Pay-to-Play’ Ban Closer to Becoming Law after Mayor Declines Veto by Peter Jamison for Washington Post

Illinois: Contractor Challenges Illinois Campaign Finance Law by Lorraine Bailey for Courthouse News

Ethics

National: BuzzFeed’s Stumble Is Highest-Profile Misstep at a Time When Press Is Under Greatest Scrutiny by Paul Farhi (Washington Post) for Danbury News Times

Arkansas: Arkansas Ethics Commission Pushed to ‘Breaking Point’ After Receiving Record Citizen Complaints, Director Says by Michael Wickline for Northwest Arkansas Democrat-Gazette

Vermont: Ethics Commission Wants Investigatory Authority by Mark Johnson for VTDigger.org

Lobbying

Arizona: Bill Aims to Reduce the Amount Lobbyists Must Report Spending on Lawmakers by Jerod MacDonald-Evoy for Arizona Mirror

New York: Upheaval in State Legislature Creates Opportunities for Lobbyists by David Lombardo for Albany Times Union

Gov. Andrew Cuomo has proposed several campaign finance and ethics changes in his executive budget.

These recommendations include creating a code of conduct for lobbyists and campaign finance reform.

The lobbyist’s code of conduct would include lowering the registration threshold, require reporting of campaign contributions, increase the revolving door provision from two to five years, along with additional disclosures and penalties.

Cuomo also called for banning corporate contributions, as well as lowering individual contributions to statewide and General Assembly candidates.

He also urged the Legislature to pass a revision that closes the Limited Liability Company loophole and prevents LLCs from contributing more than $5,000 annually.

Sen. Richard Alloway announced his retirement from Senate District 33 effective February 28.

Sen. Alloway served the state Senate for over 10 years.

Lt. Gov. John Fetterman will set a special election at a date to be determined.

The winner of the special election will serve the remainder of Alloway’s term until 2020.

Campaign Finance

California: “With FBI Probe Looming, L.A. City Council Members Revive Plan to Limit Developer Donations” by Emily Alpert Reyes and David Zahniser for Los Angeles Times

New Jersey: “NJ Lawmakers Look to Close ‘Dark Money’ Disclosure Loopholes as Top Democrats Face Flak” by Nicholas Pugliese for Bergen Record

Ethics

National: “President Trump Directed His Attorney Michael Cohen to Lie to Congress About the Moscow Tower Project” by Jason Leopold and Anthony Cormier for BuzzFeed News

National: “GOP Rep. Jason Smith Apologizes for Telling Democrats to ‘Go Back to Puerto Rico’” by Jennifer Scholtes, Caitlin Emma, and Sarah Ferris for Politico

National: “Former VA Secretary Violated Ethics Rules by Allowing Employee to Drive His Wife Around” by Donovan Slack for USA Today

North Carolina: “Judge: GOP can’t block liberal group’s Twitter comments” by Todd Richmond (Associated Press) for Charlotte Observer

Lobbying

National: “Law Firm to Pay $4.6 Million in Case Tied to Manafort and Ukraine” by Kenneth Vogel and Mathew Goldstein for New York Times

South Dakota: “Kerfuffle from Article on Lobbyist’s Access to House Floor” by the Staff for KELO.com

Got a minute?! We’re back with News You Can Use Video Digest and here are 4 stories from the past week you don’t want to miss!

Rep. Tom Marino announced his resignation from the U.S. House of Representatives on January 17.

Marino said he has accepted a job in the private sector, and his last day in Congress will be January 23.

Gov. Tom Wolf will have 10 days to set a date for a special election to fill the vacancy in the 12th Congressional District.

Gov. Gavin Newsom announced a special election to fill the vacancy in the 1st Senate District.

The seat was vacated by Ted Gaines, who was sworn in as a member of the California State Board of Equalization.

The special primary election will be held on March 26, and, if necessary, a special runoff election will be on June 4.

Federal:

At Trump’s Inauguration, $10,000 for Makeup and Lots of Room Service
MSN – Maggie Haberman, Sharon LaFraniere, and Benn Protess (New York Times) | Published: 1/14/2019

President Trump’s inaugural committee spent roughly $100 million for an abundance of expenses, including more than $1.5 million at the Trump International Hotel in Washington, D.C. The expansive spending reflected Trump’s desire to make a grand entrance, with roughly 20 events around Washington. Disclosure of the spending details comes at a time when the inaugural committee is facing legal scrutiny over the donations that funded it. There is no indication of any investigation into the inaugural committee’s spending. For the most part, inaugural committees are free to spend the money they raise from private donations as they wish. But millions of dollars for Trump’s inauguration were written off in lost revenue.

New Members, Meet the ‘Slush Fund’
Roll Call – Stephanie Aikin | Published: 1/14/2019

More than two dozen new members of the U.S. House and Senate, many of whom campaigned against corruption and corporate money in politics, have established so-called leadership PACs. They are fundraising committees that allow lawmakers to collect money for their colleagues and candidates. The vast majority of members have one, and many say they can be helpful tools to support other politicians and the issues they care about. But the PACs are not subject to the same restrictions on personal spending as individual campaign committees, leading to numerous examples of alleged misuse. Critics say they also allow politicians to evade campaign contribution limits and obscure donations from corporations and other powerful groups.

T-Mobile Execs Seeking Trump Approval for Deal Stayed Repeatedly at His D.C. Hotel
Chicago Tribune – Jonathan O’Connell and David Fahrenthold (Washington Post) | Published: 1/16/2019

Top executives from T-Mobile booked reservations at Trump International Hotel in Washington, D.C. one day after it was announced that T-Mobile’s merger with Sprint would require the administration’s approval. T-Mobile executives stayed at the hotel for at least 38 nights during 2018. The Washington Post obtained about a dozen 2018 VIP Arrivals lists which are provided to hotel staff when foreign officials, executives, and Trump family friends are customers at the hotel. Countries, interest groups, and companies like T-Mobile – whose future will be shaped by the administration’s choices – are free to stop at both and pay the president’s company while also meeting with officials in his government. Such visits raise questions about whether patronizing Trump’s private business is viewed as a way to influence public policy.

From the States and Municipalities:

California: Downtown L.A. Development Is a Focus of FBI Corruption Probe
Los Angeles Times – Emily Alpert Reyes and David Zahniser | Published: 1/14/2019

The rapid transformation of downtown Los Angeles’ skyline is being fueled in good measure by huge investments from Chinese companies eager to burnish their global brands and capitalize on the city’s real estate boom. Now, some of those projects have become a focus of federal agents seeking evidence of possible bribery, extortion, money laundering, and other crimes as part of a corruption investigation at City Hall. Federal investigators have cast a wide net for information about foreign investment in Los Angeles real estate development, according to a search warrant that names an array of political and business figures. The investigation became public in November, when FBI agents raided the home and offices and offices of city Councilperson Jose Huizar.

Colorado: Judge: State ethics panel has no jurisdiction over many Colorado cities
Colorado Politics – Marianne Goodland | Published: 1/10/2019

A judge said the Colorado Independent Ethics Commission (IEC) no longer has jurisdiction over the ethics rules of home-rule cities such as Denver and Colorado Springs. Part of Amendment 41, the voter-approved ethics law, deals with ethics codes set up by home-rule cities and counties. It says Amendment 41 does not apply to “home rule cities or counties that have adopted charters, ordinance or resolutions that address the matters covered” under the amendment. Shortly after the passage of Amendment 41, the city of Glendale adopted its own code of ethics. But the IEC, in deciding it had jurisdiction over Glendale, decided the city’s code did not contain every provision laid out in Amendment 41.

Kentucky: How Much Is Spent Lobbying Kentucky’s Executive Branch? This Bill Demands an Answer.
Lexington Herald-Leader – Jack Brammer | Published: 1/15/2019

Kentucky Senate President Robert Stivers introduced legislation to give the public more information about those lobbying the state’s executive branch. Businesses often spend more than $20 million-a-year lobbying Kentucky lawmakers, but no similar number is counted for executive branch lobbyists, who are far more numerous. Under Senate Bill 6, executive branch lobbyists would have to file with the Executive Branch Ethics Commission their payment and could not work for any type of contingency fee.

Montana: U.S. Supreme Court Declines to Take Up Montana Campaign Finance Case
Montana Standard; Associated Press –   | Published: 1/14/2019

The U.S. Supreme Court declined to hear a case challenging Montana’s campaign contribution limits, likely ending a legal challenge that has lasted more than seven years. Opponents of the caps, which are among the lowest in the country, said they are unconstitutional under the First Amendment and prevent candidates from waging effective campaigns. In declining to take up the case, the high court upheld the Ninth U.S. Circuit Court of Appeals’ ruling that the limits are a reasonable way to prevent corruption and still allow candidates to raise enough money. Since the lawsuit was filed, a federal judge has ruled twice that those limits are unconstitutional, only to be reversed upon appeal.

New York: Legislature Passes Sweeping Electoral Reforms
Albany Times Union – Rachel Silberstein | Published: 1/14/2019

New York lawmakers passed several bills that would allow early voting, preregistration of minors, voting by mail, and limits on the influence of money in elections. The reforms make state primary elections the same day as federal primary elections. One bill amends the law to hold limited liability companies (LLCs) to the same aggregate contribution limit of $5,000 that applies to corporations. The legislation includes a constitutional amendment that requires the disclosure of the identity and proportion of ownership of all direct and indirect owners of the membership interests in the LLC and may go into effect as soon as 2021.

Ohio: Columbus Council Appoints Shayla Favor, Approves Campaign Finance Reforms
WOSU – Gabe Rosenberg | Published: 1/15/2019

The Columbus City Council approved the city’s first ever campaign finance reforms. The measures set requirements for disclosing the sources of campaign advertisements and include a tax credit for small donations. But the most-discussed part of the reforms are the campaign contribution limits: $12,707.79 per year. The limit is higher than any other city in Ohio. Because the provision applies annually rather than by campaign period, city officials could raise more money than state officeholders serving for the same amount of time. It applies to all municipal candidates including mayor, council member, auditor, and city attorney. The contribution limits will take effect in time for this year’s elections.

Oklahoma: Stitt Inauguration Donors May Not Be Revealed Until Summer
Oklahoma Watch – Trevor Brown | Published: 1/10/2019

Hundreds of donors and supporters will welcome Kevin Stitt as Oklahoma’s new governor during four days of events. The pre-inaugural events are a lavish and at times controversial tradition shared by newly elected presidents and governors across the country. The events will be entirely funded by private money from Stitt’s backers or those looking to gain good will with the administration. If past inaugurations are a guide, Stitt will likely raise more than $1 million from wealthy individuals, companies, and special-interest groups that are allowed to contribute without limits. But those donors can be kept secret for up to six months, until well after this year’s legislative session is over.

South Carolina: SC Ethics Advocate Creates Ethics Dilemma by Gifting Corruption Book to Lawmakers
The State – Avery Wilkes | Published: 1/10/2019

Lobbyist John Crangle, a longtime ethics reform advocate, gave the South Carolina House and Senate more than 180 copies of his book on a corruption scandal to remind legislators of “Operation Lost Trust,” the 1990 investigation that found widespread vote-selling in the General Assembly and led to criminal charges against 18 lawmakers. The books were delivered to individual lawmakers as they returned to Columbia to begin the legislative session. House Ethics Committee Chairperson Murrell Smith said staffers contacted Crangle and the publisher to verify the book was worth less than the $25 and, thus, would not need to be reported as a gift. State Rep. Kirkman Finlay said Crangle’s gift highlights the awkward spot that legislators regularly find themselves in when a gift reaches their door.

Texas: Texas Republicans Rally Behind Muslim Official as Some Try to Oust Him Over Religion
MSN – Adeel Hassan (New York Times) | Published: 1/10/2019

Shahid Shafi will retain his role as vice-chairperson of the Tarrant County Republican Party despite a push to remove him from his post because he is Muslim. Those who were in favor of Shafi’s removal said he is unequipped to be vice-chair because he does not represent all Tarrant County Republicans due to his religion. They have also said Islamic ideologies run counter to the U.S. Constitution, an assertion many Texas GOP officials have called bigoted.

Vermont: A White Nationalist’s Harassment Helped Force a Black Female Lawmaker to Resign. He Won’t Face Charges.
MSN – Meagan Flynn (Washington Post) | Published: 1/15/2019

Vermont Attorney General T.J. Donovan said he will not file charges in the reported racial harassment of former state Rep. Kiah Morris, though he believes Morris and her family were victims. Donovan said he would not pursue a criminal case because the First Amendment protects free speech. Morris was the only black female lawmaker in the Legislature and she won the Democratic nomination this summer but withdrew, citing racially motivated threats and online harassment. The messages Max Misch, a self-described white nationalist, sent to Morris over a two-year period disrupted her life to the point that she sought, and was granted, a protective order against him. To Misch, the incidents were little more than a joke. “I like trolling people – it’s fun,” Misch said.

Washington: Split Court: Local initiatives subject to disclosure rule
KOMO – Gene Johnson (Associated Press) | Published: 1/10/2019

The Washington Supreme Court ruled the state attorney general’s office can pursue a campaign finance disclosure case against the conservative Evergreen Freedom Foundation. The majority rejected the group’s assertion that the disclosure requirements did not apply to local initiatives before they are placed on the ballot. State law explicitly says that after a measure has been submitted to an elections official, donations to that campaign must be reported. That applies to statewide initiative measures, which must be reviewed by the secretary of state’s office before proponents can gather signatures. But for some local initiatives, supporters do not turn them in until after they have collected signatures.