Campaign Finance

National: “Federal Judge Stops Enforcement of Maryland Election Law” by Edward Ericson Jr. for Courthouse News Service

Michigan: “Snyder Veto Spree Takes Down GOP Power Play Proposal, 40 Other Bills” by Jonathan Oosting for Detroit News

Pennsylvania: “Former Reading Official Sentenced to 18 Months in Bribery Case with Ties to Allentown Pay-to-Play Probe” by Peter Hall for Allentown Morning Call

Elections

National: “Secret Campaign to Use Russian-Inspired Tactics in 2017 Ala. Election Stirs Anxiety for Democrats” by Craig Timberg, Tony Romm, Aaron Davis, and Elizabeth Dwoskin (Washington Post) for Denver Post

Ethics

Oregon: “BOLI Finds ‘Substantial Evidence’ of Sexual Harassment at Oregon Capitol” by Ted Sickinger and Hillary Borrud for Portland Oregonian

Washington: “From Campaign Consultant to Lobbyist and Adviser: The firm that has Seattle Mayor Jenny Durkan’s ear” by Daniel Beekman and Lewis Kamb for Seattle Times

Lobbying

California: “As Fires Ravaged California, Utilities Lobbied Lawmakers for Protection” by Ivan Penn (New York Times) for MSN

Redistricting

National: “Supreme Court to Hear Cases on Partisan Gerrymandering in Maryland, N. Carolina” by Robert Barnes (Washington Post) for Salt Lake Tribune

U.S. District Judge Paul W. Grimm, has enjoined Maryland from enforcing M.C.E.L. §§ 13-405 and 13-405.1.

The statutes in question, require online platforms, like search engines and social media sites, to publicly disclose the contact information and amount paid by the purchaser to the online platform for the placement of the qualifying paid digital communication within 48 hours.

In the 50-page opinion, the judge concludes the statutes encroach on First Amendment freedoms. The state may file an interlocutory appeal.

Effective January 8, a lobbyist who had also been elected to public office is prohibited from making or authorizing, from political contributions accepted as a candidate or officeholder, a political expenditure that is a political contribution to a candidate, officeholder, or political committee.

This restriction applies after the ending date of the last term for which the lobbyist was elected to public office. This law was created by House Bill 505 of the 2017 Legislature and adds Section 305.029 to the Government Code.

On December 14, 2018, the Texas Ethics Commission adopted an amendment to Texas Ethics Commission Rules §50.1, increasing the legislative per diem from $190 to $221.

Per Texas law, the detailed reporting threshold for food and beverages, entertainment, transportation, and lodging is 60 percent of the legislative per diem.

The detailed reporting threshold therefore increased to $132.60 for these expenditures made on or after January 6, 2019.

Pennsylvania Lt. Gov. Mike Stack announced a special election to fill the vacancy in the 37th Senate District.

The seat became open with the election of Guy Reschenthaler to the U.S. House of Representatives.

The district includes suburbs in western and southern Allegheny County as well as part of Washington County.

The first piece of legislation introduced into the new U.S. House of Representative was a sweeping 571-page campaign finance bill. Introduced by Rep. John Sarbanes, House Bill 1, the For the People Act, requires any organization involved in political activity to disclose its largest donors, creates a multiple matching system for small donations for political campaigns, and amends rules governing super PACs.

The bill also restructures the Federal Election Commission, amends the federal conflict of interest law, and expands the revolving door provision by prohibiting members of Congress from serving on corporate boards. If passed, the bill also requires presidential candidates to disclose their tax returns, prohibits partisan gerrymandering, increases oversight over election vendors, creates an automatic voter registration across the country, and changes registration requirements for lobbyists and foreign agents.

Sarbanes argued the rational for the bill in his press release, stating, “The bold, transformative set of reforms that we introduced today will strengthen our democracy and return political power to the people by making it easier, not harder, to vote, ending the dominance of big money in our politics and ensuring that public officials actually serve the public.”

The Wyoming Secretary of State’s Office has announced the launch of a new online Lobbyist Center.

The Lobbyist Center allows lobbyists to register online and gives the public real-time access to a list of Wyoming lobbyists and associated filings.

The Lobbyist Center can be accessed at the Secretary of State’s website.

Campaign Finance

National: “House Democrats Propose Major Campaign Finance Reforms in First Bill of Session” by Carl Evers-Hillstrom for Center for Responsive Politics

Illinois: “Campaign Money Tied to Ald. Edward Burke’s Alleged Extortion Scheme Was Intended for County Board President Toni Preckwinkle, Sources Say” by Bill Ruthhart and Jason Meisner for Chicago Tribune

Ethics

National: “Makeup of Cabinet Is Creating More Hurdles for Trump” by Andrew Restuccia for Politico

Florida: “Florida Senate Pays $900,000 in Case Related to Jack Latvala Sexual Misconduct Case” by Elizabeth Koh for Tampa Bay Times

Michigan: “Whitmer Bans Campaign Activities on Public Dime, Use of Private Email” by Beth LeBlanc for Detroit News

Oregon: “Former Oregon First Lady Cylvia Hayes Criticized for ‘Bad Faith’ in Bankruptcy Proceedings” by Ben Botkin for Salem Statesman Journal

Lobbying

National: “Joe Lieberman, Registered Lobbyist Who Doesn’t Actually Lobby” by C. Ryan Barber for Law.com

California: “California Health Care CEO Pleads Guilty in Public Corruption Case That Netted Alabama Legislators” by Melissa Brown for Montgomery Advertiser

Sometime before May 16, 2019, a by-election will be announced for the seat in the House of Assembly representing Sackville-Cobequid in the province of Nova Scotia.

The Sackville-Cobequid seat became vacant with the resignation of MLA David Wilson on November 16, 2018.

When Wilson tendered his resignation to the Clerk of the House, he would not reveal his future plans. “It’s just time for me to look at other things,” said Wilson, according CBC.com.

A writ for a by-election must be issued six months from the date of his resignation. The by-election must be held on a Tuesday between 30 and 46 days from the date that writ is issued.

Federal Lobbyists are now required to disclose convictions for bribery, fraud, and other crimes when registering and reporting.

President Trump signed Senate Bill 2896, the “Justice Against Corruption on K Street Act of 2018” or the “JACK Act” on January 3. On December 20, 2018 the U.S. Congress passed the bill, which passed the U.S. Senate in August with unanimous consent.

The new law requires lobbyists to disclose any prior conviction for bribery, extortion, embezzlement, illegal kickbacks, tax evasion, fraud, conflicts of interest, making false statements, perjury, or money laundering.

The House voted 390-0 to pass the Senate’s bill on to President Trump.

The New Mexico Secretary of State’s Office will be offering two lobbyist trainings on lobbyist registration, reporting requirements, and a segment on sexual harassment.

The trainings are voluntary and will be held on January 10, 2019, 9:00 a.m.-12:00 p.m. and January 17, 2019, 1:00 p.m.-4:00 p.m.

The Secretary of State has yet to release additional details on how to register.

Federal:

Mueller Fuels Foreign Lobbying Crackdown
The Hill – Morgan Chalfont and Alex Gangitano | Published: 12/31/2018

The Federal Agents Registration Act dates to 1938, when it was passed to ensure transparency of foreign influence in the American political process as a result of fears over Nazi and communist propaganda. It has been amended twice since then but is essentially the same law. It requires that “agents of foreign principals,” typically lobbyists or consultants who work for foreign governments or political parties, register and file regular reports with the Justice Department on their activities. They also must file copies of materials they distribute for any foreign entities and keep a record of their activities. Criminal prosecutions under the law have been few and far between, but special counsel Robert Mueller’s investigation has changed that, at least for the time being.

Sexism Claims from Bernie Sanders’s 2016 Run: Paid less, treated worse
MSN – Sydney Ember and Katie Benner (New York Times) | Published: 1/2/2019

Accounts of sexual harassment and demeaning treatment, as well as pay disparity, in U.S. Sen. Bernie Sanders’s 2016 presidential campaign have circulated in recently in emails, online comments, and private discussions among former supporters. As Sanders tries to build support for a second run at the White House, his perceived failure to address this issue has damaged his progressive bona fides, nearly a dozen former state and national staff members said. It also has raised questions among them about whether the senator can adequately fight for the interests of women, who have increasingly defined the Democratic Party, if he runs again for the presidential nomination. The former staff members said complaints about mistreatment and pay disparity during and just after the campaign reached some senior leaders of the operation.

Trump Effect: How out-of-state money fueled Democratic House wins in 2018
USA Today – Maureen Groppe and Christopher Schnaars | Published: 12/29/2018

The Democrats who captured the U.S. House by flipping 43 districts from red to blue in the November election received on average more than half of their large-dollar campaign funds from outside their states. By contrast, defeated Republicans in those districts collected only about one-third of their itemized funds from outside their states. The money that poured into House races from out-of-state donors was another example of the nationalization of the 2018 midterm elections that were partly a referendum on President Trump’s first two years in office. Analysts said the data reinforced other signs that opposition to Trump helped to motivate Democratic donors.

From the States and Municipalities:

Alabama: Ethics Revision Commission Could Give Legislators Multiple Choices
Montgomery Advertiser – Brian Lyman | Published: 12/27/2018

A commission working on proposed changes to the state’s ethics law might deliver multiple options to legislators next year. Tom Albritton, executive director of the Alabama Ethics Commission, said the final proposals will likely include a range of options on different issues for lawmakers to take up, should they decide to revise ethics laws in the legislative session that begins next March. The Code of Ethics Clarification and Reform Commission has taken up a number of issues, though it has spent a great deal of time on the definition of “principal,” or a person or entity who hires a lobbyist.

Delaware: Former Delaware Lawmaker Melanie George Smith’s New Career Draws Complaints of Self-Dealing
Wilmington News Journal – Scott Goss | Published: 1/2/2019

Former Rep. Melanie George Smith has launched a consulting firm that critics say is benefiting from a Delaware “sustainability” industry that she helped create during her final months in office. Her business, Sustainable World Strategies, is prompting questions about the rules that are supposed to stop state lawmakers from crafting legislation that benefits them personally. Smith rejects the notion that her business has anything to do with the legislation she sponsored. “They are completely separate,” she said. “And when you introduce legislation in Dover that is broadly beneficial to everybody, there is no conflict whatsoever.”

Florida: Lauren Book Proposes ‘Swearing In’ Legislative Speakers
Florida Politics – Jim Rosica | Published: 1/2/2019

Florida Sen. Lauren Book filed the Truth in Government Act for the 2019 legislative session that would require people appearing at legislative committees to be sworn in before speaking. Those making a “false statement that he or she does not believe to be true, … in regard to any material matter, commits a felony of the third degree,” Senate Bill 58 says. But the legislation exempts lawmakers themselves, staff members, and children. The majority of speakers before legislative panels are paid lobbyists. “I don’t think it’s necessary because it confuses 1st Amendment-right advocacy with investigatory or legal proceedings that require testimony under oath,” one lobbyist said.

Idaho: Why Does This Charity Golf Event Hosted by Idaho’s Governor Cost More Than It Gives Out?
Idaho Statesman – Audrey Dutton | Published: 1/3/2019

The annual Governor’s Cup tournament is a multiday golf and sporting affair that raises money for college and trade-school scholarships in Idaho. The event is hosted by the governor and first lady and is attended by the state’s political and business movers and shakers. Almost every year of the past decade, the nonprofit that runs the tournament has spent at least twice as much money on throwing the annual event than it has awarded in financial aid. Marcus Owens, a former director of the IRS’s division for tax-exempt organizations, said the event’s cost calls into question its primary purpose. “It sure sounds like this is an opportunity for lobbyists to do what lobbyists do outside the eyes of reporters or the general public,” said Owens.

Illinois: Feds Charge Powerful Ald. Edward Burke with Corruption
Chicago Tribune – Jason Meisner | Published: 1/3/2019

Chicago Ald. Edward Burke was charged with attempted extortion in a federal criminal complaint. It alleges Burke tried to extort a company that owns fast-food restaurants in the Chicago area and needed help with permits for a remodeling job. The complaint also alleged Burke illegally solicited a campaign donation from an executive with the restaurant company for another politician, who is not named in the charges. The criminal charge was stunning even for a city with a long history of public corruption. While dozens of his city council colleagues have been convicted and sent to prison over the decades, Burke was largely seen as too clever or sophisticated to be caught. He had faced federal scrutiny several times before but always escaped charges.

Missouri: No More Free Lunch for Missouri Lawmakers. Literally.
St. Louis Post-Dispatch – Kurt Erickson | Published: 1/3/2019

Although it could face a test in court, a possible repeal by frustrated lawmakers, and varied legal opinions from ethics regulators, the so-called Clean Missouri ballot measure approved by voters in November places a five-dollar cap on gifts lawmakers can receive from lobbyists. That means fewer lobbying groups offering free food to lawmakers and legislative staffers during the busy crush of the legislative session that begins January 9 and runs through May 17. It means no more dinners being purchased by lobbyists for lawmakers at local restaurants, nor free tickets to baseball games, concerts, or golf tournaments. For lobbyists, lawmakers, and restaurateurs in Jefferson City, the changes are significant.

Missouri: State Seeks Dismissal of Lobbyist Gift Ban Lawsuit
St. Louis Post-Dispatch – Kurt Erickson | Published: 12/26/2018

Missouri Attorney General Josh Hawley is asking a federal judge to dismiss a lawsuit that sought to overturn a ban on workers in the governor’s office receiving gifts from lobbyists. Gov. Mike Parson in November rewrote an order issued by his predecessor, Eric Greitens, that had prohibited all gifts from lobbyists. The change was aimed at allowing groups to distribute informational booklets to employees of the state’s chief executive. In October, the Institute for Justice said the ban on gift-giving violated the organization’s First Amendment rights to free speech because it prohibits them from giving workers in Parson’s office two books. Hawley’s office said the change makes the lawsuit unnecessary.

New Jersey: New Jersey Is the Latest Battleground in National Redistricting Fight
Politico – Matt Freidman | Published: 12/28/2018

Democrats who control the New Jersey Legislature attempted to fast track a constitutional amendment to change the way the state draws its legislative districts. The plan would have inserted a formula into the state constitution almost certainly cementing Democratic majorities for decades to come. But to a new wave of liberal activists, it reeked of an attempted power grab. Their party’s redistricting amendment gave them a new target and joined by good government groups and Republican state lawmakers who stood to see their already diminished clout reduced further, they held rallies in front of the Statehouse to oppose it.  Redistricting is drawing more and more mainstream attention, with New Jersey the latest state to battle over the drawing of district lines in the run-up to 2020.

New York: N.Y.’s New Attorney General Is Targeting Trump. Will Judges See a ‘Political Vendetta?’
MSN – Jeffery Mays (New York Times) | Published: 12/31/2018

Letitia James, the incoming New York attorney general, has suggested that President Trump could be charged with obstruction of justice, and implied that foreign governments channeled money to his family’s real estate holdings, which she characterized as a “pattern and practice of money laundering.” Democratic attorneys general across the country have used their offices to confront Trump. But since her election, James has opened herself up to criticism that she has gone too far in allowing politics to shape her agenda. Her strident attacks on the president could potentially threaten the legal standing of cases that her office brings against Trump, his family members or their business interests, legal experts said.

North Carolina: NC Lawmakers Override Veto of Bill That Makes Allegations of Campaign Finance Violations Secret
Raleigh News and Observer – Craig Jarvis | Published: 12/27/2018

Republican lawmakers held off North Carolina Gov. Roy Cooper’s attempt to muster enough Democrats to thwart an override of his veto of an elections law bill. A large majority of Democrats had voted to approve the bill, as it reflected changes in state election law that Cooper achieved in a lawsuit. But despite negotiations with legislative leaders over how to accomplish those changes, Cooper focused the argument on keeping accusations of campaign finance violations secret. Cooper opposed a provision in the bill that will require allegations of campaign finance wrongdoing to be probed by the State Ethics Commission and its findings to be referred to the State Board of Elections. The elections board could then refer the matter to local prosecutors to consider bringing criminal charges, all in confidence.

South Dakota: Undisclosed Donors Gave $95K in SD Governor Race
Rapid City Journal – Seth Tupper | Published: 12/30/2018

An out-of-state PAC that ran advertisements supporting Kristi Noem and opposing Billie Sutton in the race for South Dakota governor received $95,000 from undisclosed sources during the final week of the campaign. The money was raised by a corporation, apparently a 501(c)4 nonprofit, that does not disclose its donors. The corporation then gave the money to a super PAC, which appears to have spent most or all the money on independent expenditures in the race. The contributions from the corporation to the super PAC occurred late enough in the campaign that they did not show up on the super PAC’s campaign finance reports until a post-election report, which was filed on December 6.

Special elections for the 114th and 190th House Districts have been set for March 12, 2019.

The 114th District became vacant in October after the death of State Rep. Sid Michaels Kavulich, while the 190th District was vacated after Vanessa Lowery Brown was convicted in a bribery case late last year.

Candidates for the seats will be chosen by a process determined by the political parties.

Campaign Finance

National: “Congress Unlikely to Stop Super PACs from Hiding Donors” by Maggie Severns for Politico

National: “Potential 2020 Candidates Confront the Need for Campaign Cash, and Fewer Sources of It” by Matt Viser for Washington Post

National: “Trump Effect: How out-of-state money fueled Democratic House wins in 2018” by Maureen Groppe and Christopher Schnarrs for USA Today

South Dakota: “Undisclosed Donors Gave $95K in SD Governor Race” by Seth Tupper for Rapid City Journal

Ethics

Connecticut: “Former Access Health CEO, State Contractor Pay to Settle Ethics Violation” by Clarice Silber for Connecticut Mirror

Delaware: “Former Delaware Lawmaker Melanie George Smith’s New Career Draws Complaints of Self-Dealing” by Scott Goss for Wilmington News Journal

Missouri: “Committee Investigating Eric Greitens Releases 2,100 Pages of Documents on New Year’s Eve” by Jack Suntrup and Kurt Erickson for St. Louis Post-Dispatch

Lobbying

Florida: “Lauren Book Proposes ‘Swearing In’ Legislative Speakers” by Jim Rosica for Florida Politics

Redistricting

New Jersey: “New Jersey Is the Latest Battleground in National Redistricting Fight” by Matt Freidman for Politico

The Hawaii State Ethics Commission announced the new electronic filing system for lobbying registrations and disclosures is currently being tested and will not be available in early January as anticipated.

Lobbyists who plan to continue lobbying in 2019 must renew registrations as usual by Monday, January 28.

Lobbying expenditure reports are due as usual on Thursday, January 31.

The Commission will hold a training session on January 7 at 10 a.m. to provide an overview of the lobbying laws.

The Commission has yet to announce a release date for the new e-filing system.