See us in person! Are you attending any of these events in May? Make sure you say hi to someone from State and Federal!

May 10-13 NCSL Executive Committee Meeting, Denver, CO

May 11 NILE Program on State Lobbying, Washington, D.C.

May 16 Bloomberg Government’s Next Infrastructure, Washington, D.C.

May 17 GPN Infrastructure Week Rooftop Reception, Washington, D.C.

May 17 Akron Roundtable, Akron, OH

May 22 Akron Urban League — Akron Talks, Akron, OH

Canada: “Trudeau Government Proposes Major Changes to Elections Law” by Aaron Wherry for CBC

Florida: “FEC Plans Crackdown on Zombie Campaigns” by Christopher O’Connell for Tampa Bay Times

California: “Former Lobbyist Gets 4 Months in Prison for Role in Azano Campaign Finance Scandal” by Greg Moran for San Diego Union-Tribune

Ethics

National: “Senate Democrats Question the Role of a Former For-Profit College Lobbyist at the Education Department” by Danielle Douglas-Gabriel (Washington Post) for Seattle Times

National: “Trump-Allied House Conservatives Draft Articles of Impeachment Against Rosenstein as ‘Last Resort’” by Robert Costa, Sari Horwitz, and Matt Zapotosky (Washington Post) for MSN

National: “Mueller Has Dozens of Inquiries for Trump in Broad Quest on Russia Ties and Obstruction” by Michael Schmidt (New York Times) for MSN

Arkansas: “Wilkins, Former Arkansas Legislator, Pleads Guilty to Bribery” by Jan Cottingham for Arkansas Business

Kentucky: “She Advised KY House GOP During Hoover Scandal. Now She’ll Advise the Investigators.” by Daniel Desrochers for Lexington Herald-Leader

Procurement

Missouri: “Auditor: Missouri highway patrol officials with ties to transportation firm steered it business” by Sky Chadde for St. Louis Post-Dispatch

On April 30, the Trudeau government, through the Minister of Democratic Institutions, introduced a bill intended to reform federal elections in Canada.

Bill C-76, the Elections Modernization Act, amends the Canada Elections Act to limit election periods to a maximum of 50 days, to establish spending limits for third parties and political parties during a defined period before the election period of a general election held on a day fixed, and to establish measures to increase transparency regarding the participation of third parties in the electoral process.

To achieve third party transparency, the bill adds reporting requirements for third parties engaging in partisan activities, partisan advertising, and election surveys to the reporting requirements for third parties engaging in election advertising and creates an obligation for third parties to open a separate bank account for expenses related those matters. In addition, the bill also creates an obligation for political parties and third parties to identify themselves in partisan advertising during the defined period before the election period.

The legislation also amends the Parliament of Canada Act to prevent the calling of a by-election when a vacancy in the House of Commons occurs within nine months before the day fixed for a general election under the Canada Elections Act.

Another other goal of the bill is to reduce barriers to both electoral and voting participation.

Before I can make a political contribution using my own funds, my employer requires that I obtain permission first.  Can my employer legally do this?

Yes, employers may require employees to seek preapproval before making personal political contributions. Not only can your employer require this, it’s smart business to do so. Employers may even require preapproval from family members of employees.

This preapproval requirement has evolved as a result of the increased number of jurisdictions enacting pay-to-play laws. A seemingly innocuous contribution by an employee could result in the loss of government contracts, fines, and a ban on future contracting. Criminal sanctions may apply when repeated violations occur. By requiring pre-approval, your employer can properly vet the contribution for compliance with a jurisdiction’s pay-to-play law, including disclosure requirements.

In a majority of jurisdictions, employees covered by pay-to-play laws include officers, partners, directors, senior management, salespersons, and their spouses and dependent children. In Pennsylvania and Kentucky, all employees are covered in the instance of a no-bid contract.

Requiring preclearance of employee personal political contributions is certainly more preferable than imposing a ban on employee contributions, which could result in a violation of applicable labor laws. Various jurisdictions bar employers from retaliating against employees for engaging in political activities, which can include everything from participating in a political rally to making campaign contributions. Even though an employer can require preapproval, an employer cannot directly or indirectly affect an individual’s employment by means of discrimination or threat of discrimination based on the individual’s personal political contributions.

Don’t miss Nola’s October 2022 LobbyComply Pod episode for more information on this important issue.

You have probably read our blogs, columns, press releases, and digital media posts about our new publication, European Compliance Laws. As they say, it has opened up the world to the staff and to our clients.

We have only tiptoed into Europe and include compliance resources for Great Britain, Ireland, Scotland, and the European Union. We are adding more countries in 2018 and the cost for this year is nominal—only $1,000* more for all of these additional references.

I have also started a discussion with Interel Global Public Affairs and have been invited to speak about compliance at its 5th annual summit, Advancing Interests in a New Era, in Brussels, Belgium.

Recently I sat with Fredrik Lofthagen, Interel’s CEO, and his goal for this year’s program is to look to the future and provide thought-provoking topics on how innovation and technology is bringing in a new era of public affairs and the relationship between people, ideas, and organizations.

Many of you remember Jason Jarrell when he was at the Public Affairs Council. He has been instrumental in connecting me with Fredrik and I am very appreciative of these efforts.

Now, please understand, when I am at a table with Fredrik Lofthagen; Florence Maisel, managing partner in France; Grégoire Poisson, managing partner from the EU, and Jason Jarrell, managing partner of the global practice…well, all I can say is I felt a lot like Rodney Dangerfield in Caddyshack.

In all honesty, learning all about European countries has been eye opening and we look forward to working with the global practice departments of our clients.

Before next month’s issue, I will have also gone on my first cruise on the Mediterranean with my husband, John Chames, as we celebrate our 21st wedding anniversary. It is the first time we will be on a two-week vacation together…Truly concerned one of us will go overboard!

Campaign Finance

Canada: “B.C. Closes ‘Loophole’ in Municipal Campaign Finance Laws” by Frances Bula for Globe and Mail

National: “Meet the Little-Known ‘Big Fish’ Megadonor Setting the Tone for GOP Primary Races” by Michelle Ye Hee Lee and Michael Scherer for Northwest Herald

Pennsylvania: “Contractor’s Political Contribution Returned Due to Lehigh County Pay-to-Play Law” by Tom Shortell for Allentown Morning Call

Ethics

National: “With Congress Stalled on Sexual Harassment Legislation, Lawmakers Can Escape Sanctions by Quitting” by Deidre Shesgreen for USA Today

Ohio: “Former Councilman Joe Cimperman Agrees to Plead Guilty to Ethics Charges, Pay Fine” by Corey Shaffer for Cleveland Plain Dealer

South Carolina: “South Carolina Lawmakers Getting Help on Following State Ethics Laws” by Seanna Adcox (Associated Press) for Charleston Post and Courier

Legislative Issues

Minnesota: “Allegations Against Minnesota Rep. Rod Hamilton Pose Big Test for New House Sexual Harassment Policy” by Brianna Bierschbach for Minnesota Post

Lobbying

National: “EPA Watchdog Opens Probe of Scott Pruitt’s $50 Condo Rental” by Jennifer Dhouly for Bloomberg.com

Texas: “Committee Fails to Endorse Lobbying Rules Changes” by Jo Clifton for Austin Monitor

Campaign Finance

National: Did Diamond and Silk Commit Perjury? Or Is Campaign-Finance Language Often Confusing? by Philip Bump for Washington Post

California: Hackers Stole His Campaign Cash, Sacramento Lawmaker Says by Taryn Luna for Sacramento Bee

North Carolina: Steak Dinners, Travel, HOA Fees: How some NC legislators spend campaign donors’ money by Will Doran and Lynn Bonner for Charlotte Observer

Ethics

National: Democratic Sen. Robert Menendez Is ‘Severely Admonished’ by Ethics Committee, Ordered to Repay Gifts by Mike DeBonis for Washington Post

Florida: Boca Raton Mayor Susan Haynie Hid $335,000, Charges Allege by Skyler Swisher and Tonya Alanez for South Florida Sun Sentinel

Michigan: Michigan Lawmakers Voted on Bills Even After Admitting Conflicts of Interest by Kristian Hernandez for Center for Public Integrity

Legislative Issues

Minnesota: Minnesota House Leaders Unveil Major Changes to Sexual Harassment Policy, but Updates Won’t Make Process Any More Open to Public by Brianna Bierschbach for Minnesota Post

Lobbying

National: Democrats See Their Stock Rise on K Street by Megan Wilson for The Hill

Canada: MPs Defend Taking Trips Paid by Lobbyists, Foreign Governments, but Some Say the Practice Needs Review by Samantha Wright Allen for Hill Times

Gov. Greg Abbott called a special election this week to replace U.S. Rep. Blake Farenthold. Farenthold resigned his seat in congress this month after an ethics investigation stemming from a 2014 sexual harassment allegation.

The special election will take place on June 30, 2018, and a runoff election is anticipated to be held this fall.

Gov. Abbott sent Farenthold a letter this week requesting he pay for the cost of the special election since he has not reimbursed the $84,000 of taxpayer money he used to settle the sexual harassment claim.

The letter asked for a response to the request by May 2.

On May 1, revolving door amendments to British Columbia’s Lobbyists Registration Act (LRA) come into force. The new amendment mandates a person who is a former public office holder be prohibited from lobbying, in relation to any matter, for a period of two years after the date the person left office.

Covered public officials include members of the Executive Council, individuals employed in the members’ offices, and parliamentary secretaries. Covered officials also include individuals who formerly occupied senior executive positions in a ministry, associate deputy ministers, assistant deputy ministers, and persons in a position of comparable rank in a ministry.

If the registrar is satisfied that it is in the public interest, the registrar may, on request and on any terms or conditions the registrar considers advisable, exempt a person from the revolving door prohibitions.

The new amendments come into force by regulation of the Lieutenant Governor in Council, pursuant to Bill 8, Lobbyist Registration Amendment Act, 2017, which received Royal Asset on November 30, 2017.

On April 26, the Office of the Registrar of Lobbyists for British Columbia announced it will be temporarily unavailable on May 1 starting at 9:30 a.m. as it makes changes to the registry.

National:

For Politicians Scraping Bottom, a Scarce Resource: Impeachment Lawyers
New York Times – Alan Blinder | Published: 4/22/2018

There are only a handful of lawyers who have helped shepherd governors and lawmakers through the trauma of a possible impeachment. Despite the high stake, the nation’s statehouse impeachment bar is made of up just a few battle-tested lawyers who have improvised legal strategies largely on history and hunches. An impeachment, lawyers who have worked on such proceedings around the country agree, is a political process imbued with law, where electoral rivalries and ambitions uncomfortably share the stage with talk of traditions and procedures. Ross Garber, after representing besieged governors in Alabama, Connecticut, and South Carolina, has arguably become the nation’s leading practitioner of a subspecialty whose relevance can be a barometer of political rancor.

Federal:

Lobbyist Whose Wife Rented to Pruitt Lobbied EPA Despite Denials
Politico – Theodoric Meyer and Eliana Johnson | Published: 4/20/2018

The lobbyist whose wife rented Environmental Protection Agency (EPA) Administrator Scott Pruitt a room in a Capitol Hill condominium for $50 a night helped arrange a meeting at the agency related to restoration of the Chesapeake Bay. Dennis Treacy, a former Smithfield Foods executive who now sits on the board of the Smithfield Foundation, first reached out to an official in EPA’s Office of Intergovernmental Relations to arrange the session as part of his role as the Chesapeake Bay Commission’s citizen representative. Subsequently, Williams & Jensen Chairperson J. Steven Hart – whose wife was then renting a room to Pruitt – called the administrator’s aides to encourage them to take the meeting.  Hart has said he is resigning from the firm over the matter.

Mulvaney Backlash May Drive Political Money Changes
Roll Call – Kate Ackley | Published: 4/26/2018

Mick Mulvaney, the White House budget chief and interim director of the Consumer Financial Protection Bureau, told banking executives that as a member of Congress he always met with constituents, but never out-of-town lobbyists unless they gave him campaign money – part of an exhortation to the bankers to push their agenda on Capitol Hill. “If you’re a lobbyist who never gave us money, I didn’t talk to you; if you’re a lobbyist who gave us money, I might talk to you,” Mulvaney said at an American Bankers Association conference. Campaign finance watchdogs and their allied lawmakers are seizing on the dustup to advance both long-shot legislative changes as well as voluntary ones, such as lawmakers refusing donations from PACs or registered lobbyists.

From the States and Municipalities:

California: O.C. Anti-Corruption Task Force Collapsed Amid Infighting Between Federal and Local Investigators
Los Angeles Times – Adam Elmahrek and Richard Winton | Published: 4/17/2018

In the wake of a grand jury report declaring that misconduct was “actively festering” in local government, Orange County created a corruption task force. But nearly four years after it began, the operation quietly fell apart last year amid conflicts between local and federal investigators who had little to show for their work together, according to a Los Angeles Times investigation. Sources said federal agents harbored suspicions about supervisors in the district attorney’s office seeking information about separate FBI corruption probes. And officials clashed over separate inquiries into the mayor of Santa Ana. The end of the task force marks the latest setback in a county where attempts to target corruption have often run into apathy or outright resistance from political leaders.

Colorado: U.S. Rep. Doug Lamborn Should Be Kept Off the 2018 Ballot, Colorado Supreme Court Rules
Denver Post – Jesse Paul, Mark Matthews, and John Frank | Published: 4/23/2018

The Colorado Supreme Court ruled U.S. Rep. Doug Lamborn cannot appear on the ballot in the 2018 Republican primary. The justices said Ryan Tipple, one of the petitioners Lamborn hired to collect the required signatures to qualify, was not a bona fide resident of Colorado, which is required by election law, making the signatures invalid. “We recognize the gravity of this conclusion, but Colorado law does not permit us to conclude otherwise,” the court said. Lamborn’s campaign indicated he would challenge the ruling in federal court.

Maryland: Baltimore City Council Bill Would Tighten Restrictions on Lobbyists, Require Forms Go Online
Baltimore Sun – Luke Broadwater | Published: 4/23/2018

Baltimore City Councilperson Zeke Cohen introduced a bill that would tighten restrictions on lobbyists. The Transparency in Lobbying Act would require lobbyists to identify who they are to city government officials and file quarterly disclosure reports. It also would require the ethics board to post the disclosure reports online within 30 days of their filing and consider a three-year ban for lobbyists who violate the law. Cohen said he has experienced frustration trying to figure out whom the lobbyists approaching him represent.

Michigan: Trash Titan Chuck Rizzo Gets 5½ Years: ‘I’ve let many people down’
Detroit Free Press – Tresa Baldas | Published: 4/23/2018

Fallen trash mogul Chuck Rizzo will spend 66 months in prison for bribing politicians and stealing money from the garbage-hauling firm he built into a regional powerhouse. Rizzo is one of the central figures in a widespread corruption scandal that ensnared Macomb County politicians, fellow businessperson Gasper Fiore, and Detroit police officers. Prosecutors said Rizzo bribed public officials in at least four communities to win lucrative contracts and embezzled $900,000 from his company and investors to line his own pockets.

Missouri: Greitens Charged with Second Felony After AG Investigation into Veterans Charity
Kansas City Star – Jason Hancock, Allison Kite, and Bryan Lowry | Published: 4/20/2018

Missouri Gov. Eric Greitens was indicted for illegally obtaining a donor list from a veterans charity he founded and using it to raise money for his 2016 campaign, a new blow to Greitens in a deepening political and sex scandal that has threatened his grip on the governor’s office. He was charged with one felony count of tampering with computer data in connection with the donor list. The charge dates back to actions prosecutors say took place in April 2015, when Greitens, a former Navy SEAL, was running for governor and serving on the board of directors for The Mission Continues. According to the charging document, Greitens directed an employee of the charity to take a list of donors from The Missouri Continues.

New Jersey: Video Shows Port Authority Commissioner Telling Cops: ‘You may shut the f— up!’
Newark Star-Ledger – Ted Sherman (NJ Advance Media) | Published: 4/24/2018

A Port Authority of New York and New Jersey commissioner who abruptly resigned had been caught on camera delivering an expletive-laced tirade to police officers during a traffic stop. The Tenafly Police Department released the video showing Caren Turner attempting to leverage her influence, talking about who she knew, and complaining the police had “ruined” a holiday weekend with the stop of her daughter and three friends. The video also shows her becoming increasingly agitated with the responding officers and shouting an expletive at them. Turner resigned after the authority learned of the incident. She had chaired the agency’s ethics committee.

New York: Former de Blasio Fundraiser Facing Criminal Charges for Straw Donations in 2013 Mayoral Election
New York Daily News – Molly Newman, Shayna Jacobs, and James Fanelli | Published: 4/19/2018

Thirteen suspects and nine companies, including a major donor to New York City Mayor Bill de Blaio, were accused of rigging public works contracts and abusing the campaign finance system. Husam Ahmad, the founder of construction firm HAKS, was one of several figures linked to the company accused of paying off a Department of Environmental Protection employee to gain unfair access to information about city water system projects. Ahmad was a major contributor and fundraiser for de Blasio’s 2013 campaign and was in turn appointed to the board of the Mayor’s Fund to Advance New York City.

New York: JCOPE Passes Sweeping New Lobbying Regulations
Albany Times Union – Chris Bragg | Published: 4/24/2018

The New York Joint Commission on Public Ethics (JCOPE) approved new rules that overhaul the state’s lobbying law. A major provision will create more disclosure around so-called grassroots lobbying in which well-funded interest groups seek to sway public and elected official opinions through campaign-style efforts. The rules also include an explicit requirement that lobbyists disclose the names of the lawmakers they attempt to influence. The regulations, however, face possible legal action. David Grandeau, the state’s former top lobbying official, said the Legislature never passed a law authorizing JCOPE to broadly reinterpret New York’s lobbying rules.

Ohio: How One GOP Heiress Influenced the Ohio House – and Its Leader’s Demise
Cincinnati Enquirer – Jessie Balmert | Published: 4/23/2018

Cliff Rosenberger was just 33 years old in 2014, when he was chosen to replace Ohio Speaker Bill Batchelder. Rosenberger did not have years of policy experience or a political pedigree, but he did have wealthy Republican donor Virginia Ragan’s money and Batchelder’s support. Ragan’s bankroll helped construct the Republican-controlled Ohio House that Rosenberger built. In the end, Ragan’s money also helped to destroy Rosenberger’s political career. The FBI is investigating Rosenberger’s many trips as a lawmaker and his lavish lifestyle generally, including a condominium he rented from Ragan.

Ohio: Questions Raised About Campaign Contributions and Influence at Columbus City
Columbus Dispatch – Doug Caruso and Rick Rouan | Published: 4/22/2018

Real-estate developers, unions, and some wealthy individuals who do business with the city contributed millions of dollars to the campaigns of elected officials in Columbus. City officials raised about $8.4 million from nearly 5,000 donors disclosed on reports filed from mid-2014 through 2017, but more than 60 percent of that money came from less than four percent of the contributors, according to an analysis. These large donations have prompted critics to question what influence that money leverages in City Hall. Many of the largest donors lobby for zoning changes and compete for contracts. They negotiate with the city on union deals or seek tax incentives. More than half of the 20 largest contributors are developers or linked to companies with business interests throughout the city.

Washington: Washington’s Lottery Deputy Director Ousted After Ethics Investigation
Seattle Times – Rachel LaCorte (Associated Press) | Published: 4/20/2018

Jim Warick, deputy director of Washington’s Lottery, was fired following an investigation into ethics complaints that found he and other lottery employees accepted drinks and food from a vendor who had a contract with the agency, and several employees likely got free hotel rooms during a work trip that coincided with the South by Southwest festival in Austin, Texas. Both state law and the Lottery’s own code of ethics prohibit using their positions to secure special privileges or to accept most gifts. Lottery employees fall under a section of the law that subjects them to greater restrictions than other state employees, and under an ethics advisory opinion, those employees may not accept food when a vendor sponsors a presentation.

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

Campaign Finance

National: “Watchdog Sues Paul Ryan-Aligned Dark Money Group” by Maggie Severns for Poltico

Ohio: “Lack of Campaign Fundraising Caps, Tracking Issues at City Hall Raise Concerns” by Doug Caruso and Rick Rouan for Columbus Dispatch

Rhode Island: “Mattiello Is Ordered to Repay $72K to Leadership PAC” by Katherine Gregg for Providence Journal

Tennessee: “Tennessee Lawmakers Still ‘Double-Dipping’ After Warning from Campaign Finance Official” by Joel Ebert for The Tennessean

Wisconsin: “Want to Give Digital Currency to a Political Campaign? State Ethics Panel Mulls If and How” by Mark Sommerhauser for Wisconsin State Journal

Ethics

National: “Mulvaney, Watchdog Bureau’s Leader, Advises Bankers on Ways to Curtail Agency” by Glenn Thrush for New York Times

New Jersey: “Video Shows Port Authority Commissioner Telling Cops: ‘You may shut the f— up!’” by Ted Sherman (NJ Advance Media) for Newark Star-Ledger

Lobbying

National: “Skadden Lawyer Craig Leaves Firm After Inquiry on Ukraine Report” by Greg Farrell for Bloomberg.com

Kentucky: “Metro Council Member Doubles as Lobbyist in Frankfort” by Joe Sonka for Insider Louisville

Redistricting

National: “Supreme Court Hears Arguments on Texas Redistricting” by Rafael Bernal for The Hill

Gov. Kate Brown called a special session for May 21, 2018.

The session is expected to be limited to legislation reducing small business taxes.

The governor announced she wants to complete the special session in a single day.

Campaign Finance

National: “If a Parent’s Day Job Is Running for Congress, Can the Campaign Pay for Child Care?” by Danielle Kurtz for Minnesota Public Radio

Maryland: “Baltimore City Council to Consider Public Financing of City Elections” by Ian Duncan for Baltimore Sun

Montana: “Former State Legislator Finally Pays $70K Fine for Campaign Finance Violations” by Ed Kemmick for Missoula Current

Ohio: “How One GOP Heiress Influenced the Ohio House – and Its Leader’s Demise” by Jessie Balmert for Cincinnati Enquirer

South Dakota: “A 6-Year-Old Gave $1,000 to Paul TenHaken – and It’s Legal” by Joe Sneve for Sioux Falls Argus Leader

Elections

National: “U.S. Rep. Doug Lamborn Should Be Kept Off the 2018 Ballot, Colorado Supreme Court Rules” by Jesse Paul, Mark Matthews, and John Frank for Denver Post

Ethics

California: “O.C. Anti-Corruption Task Force Collapsed Amid Infighting Between Federal and Local Investigators” by Adam Elmahrak and Richard Winton for Los Angeles Times

Michigan: “Trash Titan Chuck Rizzo Gets 5½ Years: ‘I’ve let many people down’” by Tresa Baldas for Detroit Free Press

Lobbying

National: “Protesters Target NRA Lobbyist’s Home and Wife’s Business” by Rachel Weiner for Washington Post

New York: “JCOPE Passes Sweeping New Lobbying Regulations” by Chris Bragg for Albany Times

On April 24, the New York Joint Commission on Public Ethics adopted Part 943, commonly referred to as the Comprehensive Lobbying Regulations. The rules were originally introduced in October 2016 and have gone through several revisions.

The adopted regulations compile existing guidelines and advisory opinions regarding rules and requirements related to lobbying. For example, the adopted revised rules include an online ethics training requirement for lobbyists and provide further clarification regarding reportable expenses attributable to social media activities and grassroots lobbying.

The adopted rules will become effective January 1, 2019, and are available at the JCOPE website.