The Oakland Public Ethics Commission and OpenOakland, a civic technology group, have jointly released a new version of their web tool, Open Disclosure, to track political contributions in Oakland elections.

The corresponding app, to be released on September 25, will show the source and spending of campaign funds for both Oakland city candidates and ballot measure committees.

In addition to displaying sources of contributions, the new release will also include data on spending by independent expenditures.

The Oklahoma Ethics Commission adopted ethics rules for the second time this year. In February, the commission submitted its 2018 Promulgated Ethics Rules to the governor and both houses of the Legislature.

Proposed changes included a revolving door provision prohibiting elected state officers and chief administrative officers from lobbying for two years following their terms of office or service, new rules regarding the due dates of electronic filings, and revised reporting periods for candidate election reports and independent expenditure reports.

The Legislature rejected those rules during the 2018 session. Despite the rejection earlier this year, the commission adopted the rules again on September 14, 2018.

If the Legislature chooses not to reject the proposed rule changes again, all amendments will be effective upon adjournment sine die of the 2019 regular legislative session.

On September 17, Sen. Ben Sasse introduced five federal ethics bills in the Senate, including Senate Bill 3454, the Congressional Revolving Door Ban Act, which would create a lifetime ban on members of Congress leaving office to become federal lobbyists.

Senate Bill 3452, the Cabinet Service Integrity Act, prohibits cabinet members and their immediate family from soliciting contributions from a government of a foreign country, a foreign political party, or any entity owned or controlled by a government of a foreign country or foreign political party.

Senate Bill 3451, the Congressional Anti-Corruption Act, prohibits members of Congress from buying or selling individual securities while in office.

Senate Bill 3453, the Congressional Workplace Misconduct Accountability Act, creates a public database of U.S. Congressional human resources settlements and increases the personal financial liability for members of congress.

Senate Bill 3450, the Presidential Tax Transparency Act, requires a presidential and vice-presidential candidates’ tax returns be disclosed by the Internal Revenue Service.

Sasse said he intends the legislation to be “big and disruptive and uncomfortable for Washington, D.C.”, according to his press release.

The South Dakota Legislature held a one-day special session on September 12 addressing online sales tax measures.

The initial law to collect sales tax from online retailers was passed in 2016, but it was challenged and taken all the way to the U.S. Supreme Court.

This special session was to set an effective date for the law to go into effect.

The Missouri Legislature adjourned on September 14 after finalizing two bills that were vetoed by Gov. Mike Parson in July.

The first bill expands the definition of treatment courts as a substitute for imprisonment, and the second creates an online-based STEM program for public schools.

The Legislature will convene for the 2019 session on January 9.

Campaign Finance

Canada: “Federal Liberals Violated Own Fundraising Rules” by Bill Curry and Tom Cardoso for The Globe and Mail

Hawaii: “Following Campaign Cash in Hawaii Just Got Easier” by Nathan Eagle for Honolulu Civil Beat

Illinois: “U.S. Appeals Court Upholds Illinois Campaign Finance Limits” by Associated Press for State Journal-Register

Montana: “Montana Green Party’s Ballot Benefactor May Remain Unknown” by Mary Beth Hanson (Associated Press) for Seattle Times

Ethics

National: “Alarm Grows Inside FEMA as Administrator Brock Long Fights for His Job” by William Wan and Nick Miroff for Washington Post

National: “Sen. Sasse Proposes Legislation to Address Congress’ Ethical Lapses” by Brent Martin for Hastings Tribune

Lobbying

National: “‘Robert Mueller’s Real Quest Here Is for the Truth’: How Paul Manafort’s plea brings the special counsel probe closer to its endgame” by Matt Zapotosky, Carol Leonnig, and Ashley Parker (Washington Post) for MSN

National: “Manafort Plea Deal Casts New Scrutiny on Lobbyists He Recruited” by Kenneth Vogel (New York Times) for WRAL

Oklahoma: “Oklahoma Ethics Commission Adopts Rule Barring Legislators from Becoming Paid Lobbyists for Two Years” by Nolan Clay for The Oklahoman

A redistricting proposal and ethics reform ballot initiative titled Clean Missouri expected to be on November’s ballot is now at risk of being withdrawn.

Cole County Circuit Judge Daniel Green ordered Sec. of State Jay Ashcroft to rescind the certification of the proposal because it violates the Missouri Constitution because a proposal can only cover one subject and can only amend one article of the Constitution, and the current ballot initiative breaks both of these rules.

Clean Missouri included a redistricting proposal and also proposed lowering campaign donation limits, abolishing a majority of gifts to lobbyists, and setting a two-year revolving door provision for legislators and their staffers before becoming lobbyists.

On September 12, California Gov. Jerry Brown was presented with a bill concerning political advertising in social media.

Assembly Bill 2188, the “Social Media DISCLOSE Act”, requires disclosure for advertisements made “via a form of electronic media that allows users to engage in discourse and post content, or any other type of social media”, and is paid for by a political party or a candidate-controlled committee. The disclosure obligations fall on both the registered political parties and committees and on the “online platforms.”

The online platform must maintain and make available for online public inspection a digital copy of a political advertisement, the number of impressions generated from the ad, information regarding the total amount spent on the advertisements, and other relevant information.

The bill defines an online platform as a “public-facing Internet Web site, web application, or digital application, including a social network, ad network, or search engine, that sells advertisements directly to advertisers. A public-facing Internet Web site, web application, or digital application is not an online platform for purposes of this [Act] to the extent that it displays advertisements that are sold directly to advertisers through another online platform.” The online platforms will be required to include with each political advertisement a disclosure of who funded the ad or a hyperlink to a website containing the required disclosures.

If signed by the governor, the bill takes effect on January 1, 2020.

On September 15th, Chief Justice of the United States John G. Roberts, Jr. issued an order staying a lower federal district court’s order invalidating a Federal Election Commission (FEC) campaign finance disclosure regulation. Robert’s stay was decided on Saturday after the U.S. Court of Appeals for the District of Columbia Circuit denied an emergency motion for the stay made earlier the same day.

On August 3, a federal district court had ruled a campaign finance disclosure regulation, followed for decades by the FEC, failed to uphold disclosure requirements required by a federal statute. Chief Judge Beryl A. Howell of the United States District Court for The District of Columbia issued an order, in CREW v. FEC, vacating 11 C.F.R. §109.10(e)(1)(vi), but stayed the vacatur for 45 days to give time for the FEC to issue interim regulations comporting with the statutory disclosure requirements of 52 U.S.C. §30104(c). The court also has allowed the FEC 30 days to change an earlier FEC dismissal to conform with the court’s ruling.

The case originated because of independent expenditures made in a 2012 Ohio senate race by the non-political social-welfare nonprofit Crossroads Grassroots Policy Strategies (Crossroads GPS), an affiliate of the American Crossroads Super PAC. Crossroads GPS did not report donors when reporting its independent expenditures, while it acknowledged receiving contributions over $200, arguing the donors did not donate funds directly tied to any specific reported expenditure, as the FEC interpreted 11 C.F.R. §109.10(e)(1)(vi) to require. Non-political committees making independent expenditures over $250 in a calendar year must comply with disclosure obligations closely analogous to those imposed on political committees.

The vacated regulation required the identification of each person who made a contribution in excess of $200 to the person filing a disclosure report, including for non-political 501(c)(4) non-profit entities making independent expenditures, if the contribution was made for the purpose of furthering the reported independent expenditure. The district court found the regulation, as construed and applied by the FEC, did not require the disclosure of donors, absent the donor’s express agreement that the funds be used for the specific expenditures reported to the FEC, even though the donor may otherwise support and in fact contribute for the purpose of funding those expenditures.

The district court found the regulation impermissibly narrows the mandated disclosure in 52 U.S.C. §30104(c)(2)(C), which requires the identification of such donors contributing for the purpose of furthering the non-political committee’s own express advocacy for or against the election of a federal candidate, even when the donor has not expressly directed that the funds be used in the precise manner reported.

Campaign Finance

National: Chief Justice Roberts Halts Campaign Finance Ruling by Quint Forgey and Josh Gerstein for Politico

Elections

Arizona: Forged Voter Signatures Could Cost Former State Senate Candidate Mark Syms $50,000 by Dustin Gardiner Arizona Republic

Ethics

National: California Professor, Writer of Confidential Brett Kavanaugh Letter, Speaks Out About Her Allegation of Sexual Assault by Emma Brown (Washington Post) by Los Angeles Times

National: ‘Robert Mueller’s Real Quest Here Is for the Truth’: How Paul Manafort’s plea brings the special counsel probe closer to its endgame by Matt Zapotosky, Carol Leonnig, and Ashley Parker (Washington Post) MSN

Arkansas: Oren Paris III Sentenced to 3 Years for Kickbacks by Marty Cook and Lance Turner for Arkansas Business Journal

Florida: What Andrew Gillum’s Trip to New York City Means in the FBI Investigation by Lawrence Mower Tampa Bay Times

Missouri: Missouri Ethics Reform, Redistricting Initiative Tossed from November Ballot by Judge by Alison Kite Kansas City Star

Pennsylvania: Philly Board of Ethics Fines Former Nutter Aide for Misspending City Money by Claudia Vargas Philadelphia Inquirer

The Maine Legislature adjourned without day on September 13, 2018.

The special session, called to finish business from the regular session regarding Medicaid expansion and minimum wage increases, began on June 19.

During the final day, Gov. Paul LePage threatened to call the Legislature into another special session if they did not pass a bill aimed at protecting elderly Mainers from foreclosure.

In turn, legislators passed a version of the bill on Thursday evening.

National:

Republicans Running for Governor Look for Success in Unlikely Places: Blue states
Washington Post – Tim Craig | Published: 9/9/2018

Democrats are becoming concerned as moderate Republican candidates are proving to be resilient in unexpected places, even as much of the GOP shifts to the right. With 36 gubernatorial races on the ballot nationwide, Democrats are still expected to make gains in statehouses this year. But recent polls suggest Republicans Larry Hogan of Maryland, Charlie Baker of Massachusetts, and Phil Scot and of Vermont, all up for re-election this fall in states carried by Hillary Clinton in 2016, remain among the most popular governors in the country and are favored to win re-election. Their success in winning and governing as moderates is serving as a model for GOP candidates elsewhere, including in Rhode Island and Oregon, where officials in both parties say the governor’s race is competitive.

Viral Videos Are Replacing Pricey Political Ads. They’re Cheaper, and They Work.
MSN – Jeremy Peters and Sapna Maheshwari (New York Times) | Published: 9/11/2018

The wave of female, minority, and outsider candidates that is breaking cultural barriers and toppling incumbents in the Democratic Party is also sweeping aside a longstanding norm in campaigns: that the public image of politicians, especially women, should be upbeat and conventional. For many of these Democrats who were running against better-financed rivals, the breakthrough moment came after they got personal in relatively low-cost videos that went viral, reaching millions of people. Using documentary-style storytelling, candidates have found a successful alternative to the traditional model of raising huge sums of money that get spent on expensive television commercials.

Federal:

Activists Raised $1 Million to Defeat Susan Collins If She Votes for Kavanaugh. She Says It’s Bribery.
Washington Post – Eli Rosenberg | Published: 9/11/2018

U.S. Sen. Susan Collins of Maine, a centrist Republican, is seen as a swing vote in Brett Kavanaugh’s nomination to the Supreme Court. She has said she would not vote to confirm a nominee who was hostile to Roe v. Wade. So, a group of liberal activists in Maine created an unusual crowdfunding campaign to influence Collins: they raised money in the form of pledges they said they would give to whoever decided to challenge her re-election in 2020. Donors’ credit cards will only be charged if she votes to confirm Kavanaugh. At least one ethics expert said it may violate federal bribery statutes, which prohibit giving or offering anything of value to government officials in exchange for any acts or votes.

Campaigns, Parties Can Accept Free Service From Microsoft, FEC Says
Roll Call – Stephanie Aiken | Published: 9/10/2018

The FEC ruled Microsoft may offer special cybersecurity assistance to candidates without violating rules against corporate contributions. One watchdog group called it an unprecedented opening for corporations looking to influence lawmakers and skirt campaign finance laws. Federal election law prohibits companies from providing free services to lawmakers. But the FEC would make an exception in this case, it ruled, because Microsoft would be acting out of business interests and not trying to curry favor. The decision also noted Microsoft has promised to offer the services “on a non-partisan basis.” Opponents of the change said the exception was too broad.

In an Increasingly Diverse House, Aides Remain Remarkably White
WRAL – Nicholas Fandos (New York Times) | Published: 9/11/2018

U.S. House aides write federal policy, oversee the administration of government, and shape the public’s view of Congress. But the top staff members of the House are far less racially diverse than the country itself, or even the lawmakers who employ them. Approximately 14 percent of top staff members in the House are people of color. That compares with 38 percent of the country and 23 percent of the House. Of the 40 top Democratic and Republican aides who lead the staffs of committees, only six are nonwhite. “The House of Representatives cannot effectively create public policy that benefits all Americans if the people making policy decisions do not look like all of America,” said Spencer Overton, the president of the Joint Center for Political and Economic Studies, which released the study.

From the States and Municipalities:

California: Banning Man Wins $220,000 from State Political Watchdog Panel
Riverside Press-Enterprise – Craig Schultz | Published: 9/7/2018

Frank Burgess was awarded more than $200,000 in legal fees after a court found the California Fair Political Practices Commission (FPPC) violated his Constitutional protections related to a fine levied against him as a member of a nonprofit hospital board. Burgess was fined $5,000 by the FPPC for trying to convince other members of the San Gorgonio Hospital board to continue doing business with his son’s moving and storage company. Burgess argued that as a nonprofit board, members did not fall under the Political Reform Act. A Superior Court judge overturned the fine, agreeing with Burgess’s contention that he had been denied due process because he had no forewarning he was considered a public official.

California: Koch-Backed Charity Must Reveal Donor List to California Officials, Appeals Panel Rules
Connecticut Post – Michelle Ye Hee Lee (Washington Post) | Published: 9/11/2018

A federal appeals court ruled the charity Americans for Prosperity (AFP) Foundation, which is linked to billionaire Charles Koch, must disclose its donors to California officials. The foundation had argued the state’s rules requiring filing of the donor list violate the First Amendment by discouraging individuals from giving and by exposing them to threats and harassment. The case could test the ability of state agencies to compel nonprofits to disclose the identities of their donors, particularly ones that are tied to “social welfare” nonprofits, commonly referred to as “dark money” groups. One such group is Americans for Prosperity, the main political arm of the influential Koch network. AFP Foundation, a sister organization, is a charity that focuses on education and research.

Colorado: Colorado’s Independent Ethics Commission on Uncertain Course
Colorado Springs Gazette – Marianne Goodland | Published: 9/10/2018

Critics say the Colorado Independent Ethics Commission’s (IEC) structure, staffing, and funding make it impossible for the public to have any confidence that ethics issues – whether it is investigations into potential violations, training for government employees, or guidance – are handled in a logical or even timely manner. The monthly commission meetings focus on complaints and advisory opinions. But most of the meetings are conducted in executive sessions behind closed doors. During those sessions, commissioners decide which complaints are frivolous and then will make public what they have decided. Between 2008 and 2017, the IEC received 196 complaints. All but 20 were dismissed as frivolous, out of the IEC’s jurisdiction, or withdrawn. Whether those complaints were truly frivolous will never be known.

Iowa: Iowa Governor Flew to Game on Vendor’s Plane
Associated Press – Ryan Foley | Published: 9/12/2018

Gov. Kim Reynolds received approval from Iowa Ethics and Campaign Disclosure Board Director Megan Tooker to fly with her family to Iowa State’s bowl game last year free of charge on the jet of a state vendor. Reynolds accepted the trip as a campaign donation from Sedgwick’s chief executive officer, who says he reimbursed his company for the plane’s use. The governor’s office said “bona fide campaign events” would take place during the half-day trip. Tooker said in December the governor could accept the flight, although Tooker now says she was unaware the airplane was owned by Sedgwick. Tooker also says she does not know what campaign activity Reynolds engaged in during the trip, which would be required for the flight to be considered an allowable campaign contribution instead of an illegal gift.

Kentucky: What’s Bevin Hiding? Worker Who Got $215K Raise Is His Old Army Buddy
Louisville Courier-Journal – Tom Loftus and Morgan Watkins | Published: 9/12/2018

When Kentucky Gov. Matt Bevin wanted a new state chief information officer, he did not do a national search – he hired an old Army buddy and longtime business associate last October at a salary that now leads the nation for similar state. Some state lawmakers were stunned when it was reported Bevin gave Charles Grindle a $215,000 pay raise, an unusual 134 percent increase after less than a year on the job. Neither Bevin nor Grindle have responded to requests for information about their relationship and any role it might have played in Grindle’s hiring and rapid increase in pay. A former official of the Commonwealth Office of Technology said Grindle spoke openly about his long friendship with Bevin and that he had worked for Bevin in an unspecified capacity before going on the state payroll.

Maryland: Baltimore Ethics Board Rejects Mayor Pugh’s Request for Sweeping Exemption from Fundraising Rules
Baltimore Sun – Ian Duncan | Published: 9/7/2018

The Baltimore Board of Ethics rejected Mayor Catherine Pugh’s request to be exempted from rules that bar city employees from raising money for charitable causes without prior approval. Pugh was seeking a waiver so she could solicit funds from private donors that would help pay for her administration’s social programs and other community initiatives. The board said it was unwilling to grant a blanket exception to Pugh, who could still seek waivers on a case-by-case basis. Pugh;’s office said she needed the new fundraising powers to bolster the city’s existing budget. Board member Stephan Fogleman said he was concerned the waiver the mayor sought would have made it difficult for the public to know what she was raising money for.

Michigan: Why This U-M Regent Just Returned Thousands in Campaign Donations
Detroit Free Press – Matthew Dolan and David Jesse | Published: 9/13/2018

Wealthy alumni who have sway over the University of Michigan’s $11billion endowment have given thousands in campaign donations to members of the university’s governing board. A review of state records shows two members of the university’s elected Board of Regents accepted in total nearly $30,000 in contributions from donors associated with funds receiving university investments. In addition, a family who helps guide the university’s investment strategy gave more than $29,000 to the board’s longest-serving member. To critics, some of the donations could pose a conflict-of-interest. Regent Andrea Fischer Newman pledged to return thousands of dollars in campaign contributions from three wealthy businesspeople who help control millions of dollars in university investments.

Missouri: Court Affirms Major Blow to Missouri Amendment Restricting Campaign Donations
St. Louis Public Radio – Jason Rosenbaum | Published: 9/10/2018

A federal appeals court upheld a lower court ruling that Missouri’s ban on donations from one PAC to another is unconstitutional. The Eighth Circuit U.S. Court of Appeals ruled the ban on PAC-to-PAC giving violates committees’ right to free speech. The appeals court ruled the Missouri Ethics Commission failed to show PAC-to-PAC contributions would breed corruption because the groups are not controlled by a candidate and operate independently from any party running for political office. The decision permanently stops the commission from enforcing the ban.

Ohio: Ethics Panel Imposes Stricter Rules on Ohio Lawmaker Travel
WOSU – Jo Ingles | Published: 9/11/2018

The Ohio Joint Legislative Ethics Committee said lawmakers and their employees cannot accept travel expenses from lobbyists unless those result from participation in a panel, seminar, or speaking engagement or were incurred at a meeting of a national organization of which any state agency is a dues paying member. When it comes to sharing rides with lobbyists for personal travel, starting immediately, lawmakers must reimburse the cost of their travel within a week.

Washington: Washington AG to Press for $18 Million Fine Against Foodmakers
Capital Press – Don Jenkins | Published: 9/6/2018

Washington Attorney General Bob Ferguson said his office will seek to restore an $18 million fine against the Grocery Manufacturers Association (GMA), which an appeals court overturned recently. The court upheld GMA’s conviction and left in place a $6 million judgment for shielding the names of food and beverage companies that contributed to a campaign against a GMO-labeling initiative in 2013. The court ruled, however, that a lower court judge erred by finding that GMA intentionally broke the law and tripling the penalty. Even at $6 million, the fine would be the largest campaign finance penalty in U.S. history.

Campaign Finance

National: “Three-Quarters of the Secret Money in Recent Elections Came from 15 Groups” by Fredreka Schouten for USA Today

National: “Activists Raised $1 Million to Defeat Susan Collins If She Votes for Kavanaugh. She Says It’s Bribery.” by Eli Rosenberg for Washington Post

California: “Koch-Backed Charity Must Reveal Donor List to California Officials, Appeals Panel Rules” by Michelle Ye Hee Lee (Washington Post) for Connecticut Post

Elections

National: “Viral Videos Are Replacing Pricey Political Ads. They’re Cheaper, and They Work.” by Jeremy Peters and Sapna Maheshwari (New York Times) for MSN

National: “Trump Signs New Order to Sanction Countries That Meddle in U.S. Elections” by Deirdre Shesgreen for USA Today

Ethics

California: “Fair Political Practices Commission Begins Accepting Electronic Payments for Penalties” by the Staff for The Times-Herald

Iowa: “Iowa Governor Flew to Game on Vendor’s Plane” by Ryan Foley for Associated Press

New Jersey: “Murphy’s AG Vows to Go After Crooked Cops and Politicians with New Corruption Unit” by S.P. Sullivan (NJ Advance Media) for Newark Star-Ledger

Virginia: “The Cyclist Who Flipped Off Trump’s Motorcade Is Running for Public Office” by Jenna Portnoy for Washington Post

Campaign Finance

National: “Campaigns, Parties Can Accept Free Service From Microsoft, FEC Says” by Stephanie Aiken for Roll Call

Alaska: “Realtors PAC Probably Getting Big Break on Fines for Campaign Finance Violations” by Amy Armstrong for Anchorage Press

Washington: “Judge Boosts Contempt Fines Against Tim Eyman in Campaign-Finance Lawsuit” by Joseph O’Sullivan for Seattle Times

Elections

National: “In Hollywood, There’s a Nerdy New Hobby: Flipping the House” by Michelle Ye Hee Lee for Washington Post

Ethics

National: “In an Increasingly Diverse House, Aides Remain Remarkably White” by Nicholas Fandos (New York Times) for WRAL

Colorado: “Colorado’s Independent Ethics Commission on Uncertain Course” by Marianne Goodland for Colorado Springs Gazette

Lobbying

Michigan: “Lobbyist: Hawaii junket for Lansing lawmakers was ‘hard work’” by Paul Egan for Detroit Free Press

Ohio: “Ethics Panel Imposes Stricter Rules on Ohio Lawmaker Travel” by Jo Ingles for WOSU