As the legislative session begins this week, South Carolina legislators are proposing several reforms to increase transparency.

An ongoing corruption probe has entered its fifth year, and six current or former lawmakers have been indicted thus far.

Rep. Gary Clary filed a bill that would require lawmakers to disclose any money they or their family members receive as part of an arrangement with an organization that lobbies state lawmakers.

Sens. William Timmons and Mike Fanning are sponsoring legislation that would grant the ethics commission direct access to campaign bank accounts, rather than lawmakers submitting reports on their political contributions and expenditures.

The session began on Tuesday, January 9.

Gov. John Kasich announced the special primary election for Ohio’s 12^th Congressional District will be held on May 8, and the special general election will be held on August 7.

The seat is being vacated by Rep. Pat Tiberi, who is resigning in order to lead the Ohio Business Roundtable.

The district is located north of Columbus.

Lobbying

Arizona: “A Sexist Culture Endures at Arizona Capitol, Insiders Say” by Yvonne Wingett Sanchez and Dustin Gardiner for Arizona Republic

Ethics

“These Are the Only Two States That Don’t Require Lawmakers to Disclose Finances” by Kristian Hernandez for Center for Public Integrity

“Kushner’s Financial Ties to Israel Deepen Even with Mideast Diplomatic Role” by Jesse Drucker for New York Times

Colorado: “Change to Colorado Conflict-of-Interest Rule Limits Information Elected Officials Must Share with Voters” by John Frank for Denver Post

Maryland: “Maryland’s Female Lawmakers Push Back – Quietly – on Sexual Harassment” by Ovetta Wiggins for Washington Post

Oregon: “Oregon Ethics Commission Rebukes Cylvia Hayes for ‘Blatant Disregard of Ethics Laws” by Hillary Borrud for Portland Oregonian

South Carolina: “As Corruption Probe Continues, Some Lawmakers Want South Carolina Politics to Be More Transparent” by Andrew Brown for Charleston Post and Courier

Virginia: “Growing Pains: How the departure of a longtime town manager spawned political scandal” by Antonio Olivo for Washington Post

Tech and Social Media

“Without Naming Trump, Twitter Says It Won’t Block World Leaders” by Mike Isaac for New York Times

Washington D.C. City Council is reviewing four bills that would impose new regulations and restrictions on political contributions.

Three bills under review would add various pay-to-play provisions. A fourth, which will be voted on by City Council on January 9, would institute public campaign financing for local elections.

The legislation, however, is not without its opponents.

Mayor Muriel Bowser announced she would not fund a public financing program. The public finance program, if passed by the Council, would not be in place until 2020.

Council Member David Grosso said if Bowser does not choose to fund the bill in her budget, the council can allocate money for the program.

The North Carolina General Assembly will convene for a special session on January 10 to address several topics, including judicial reform.

Lawmakers may consider eliminating judicial elections and instead institute an appointment process for selecting judges.

The Arizona Corporation Commission released a code of ethics draft that would ban lobbyists from buying gifts or food for commissioners, as well as require lobbyist registration with the state.

The draft can be amended before the Corporation Commission adopts the code of ethics, which is expected by March.

Lobbying

Illinois: “Investigation Details Secretive Contacts with Lobbyist on $2 Billion Illinois Lottery Contract” by Joe Mahr and Matthew Walberg for Chicago Tribune

Wisconsin: “State Ethics Commission Finalizing Audit of Possible Lobbying Violations” by Mark Sommerhauser for Wisconsin State Journal

Ethics

“Obstruction Inquiry Shows Trump’s Struggle to Keep Grip on Russia Investigation” by Michael Schmidt (New York Times) for MSN

Kentucky: “Panel Appointed to Investigate Kentucky House Speaker” by Adam Beam (Associated Press) for Albany Times Union

Michigan: “Michigan Senator Says His Hands Are Clean in Towing Bribery Scandal” by Paul Egan and Tresa Baldas for Detroit Free Press

Missouri: “Missouri Lawmaker Not Punished Over Remark About Hanging” by Summer Ballentine (Associated Press) for Fort Worth Star-Telegram

New York: “Reform Groups Launch ‘Restore Public Trust’ Campaign” by Rachel Silberstein for Gotham Gazette

Elections

Connecticut: “Is It Possible to Balance Statewide Tickets in Age of Primaries?” by Mark Pazniokas for Conneticut Mirror

Legislative Issues

Iowa: “A Lobbyist Got Married in the Iowa House, and a Portrait of Donald Trump Was Removed Before the Ceremony” by Jason Noble for Des Moines Register

Recapping the first week of the new year in campaign finance, lobbying, ethics and legislative sessions

National:

‘Fake News’: Wide reach but little impact, study suggests
New York Times – Benedict Carey | Published: 1/2/2018

Fake news evolved from Internet sideshow to serious electoral threat so quickly that behavioral scientists had little time to answer basic questions about it. But now the first hard data on fake-news consumption has arrived. Researchers posted an analysis of the browsing histories of thousands of adults during the run-up to the 2016 election, a real-time picture of who viewed which fake stories, and what real news those people were seeing at the same time. The reach of fake news was wide indeed, the study found, yet also shallow.

Partisans, Wielding Money, Begin Seeking to Exploit Harassment Claims
New York Times – Kenneth Vogel | Published: 12/31/2017

As the #MeToo movement to expose sexual harassment roils the nation’s capital, political partisans are exploiting the moment, raising hundreds of thousands of dollars to support accusers who come forward with charges against President Trump and members of Congress, even amid questions about their motivation. As accusations take on a partisan tint, activists and lawyers fear such an evolution could damage a movement that has shaken Hollywood, Silicon Valley, and Congress – and has taken down both a Democratic fundraiser, Harvey Weinstein, and a conservative stalwart, Bill O’Reilly.

The Modern Campaign-Finance Loophole: Governors Associations
MSN – Susan Pulliam and Brody Mullins (Wall Street Journal) | Published: 1/2/2018

Companies have found a loophole in state campaign finance rules by funneling donations through the Republican Governors Association (RGA) and its Democratic counterpart. Donors cannot earmark money for a candidate. Instead, they can simply – and legally – tell the groups they have “an interest” in a race or are contributing “at the request” of a candidate. Companies can give unlimited sums to outside groups that support candidates, but those contributions are generally disclosed. Corporate donations to the governors’ associations are also disclosed, but once the money is given to campaigns or organizations supporting them, it is labeled as coming from the RGA or the Democratic Governors Association.

Federal:

How the Russia Inquiry Began: A campaign aide, drinks and talk of political dirt
New York Times – Sharon LaFraniere, Mark Mazzetti, and Mat Apuzzo | Published: 12/30/2017

The hacking of Democratic emails and the revelation that a member of Donald Trump’s campaign, George Papadopoulos, may have had inside information about it were driving factors that led the FBI to open an investigation into Russia’s attempts to disrupt the election and whether any of Trump’s associates conspired. If Papadopoulos, who pleaded guilty to lying to the FBI, was the improbable match that set off a blaze that has consumed the first year of the Trump administration, his saga is also a tale of the Trump campaign in miniature. He was brash, boastful, and underqualified, yet he exceeded expectations. And, like the campaign itself, he proved to be a tantalizing target for a Russian influence operation.

Trump Disbands Commission on Voter Fraud
New York Times – Michael Tackett and Michael Wines | Published: 1/3/2018

President Trump announced he is disbanding a controversial panel studying alleged voter fraud that became mired in multiple federal lawsuits and faced resistance from states accusing it of overreach. The decision is a major setback for Trump, who created the commission last year in response to his claim, for which he provided no proof, that he lost the popular vote to Hillary Clinton in 2016 because of millions of illegally cast ballots. The commission met only twice amid the series of lawsuits seeking to curb its authority and claims by Democrats that it was stacked to recommend voting restrictions favorable to the president’s party.

From the States and Municipalities:

California – L.A. Could Exempt Many Nonprofits from Revealing Lobbying
Los Angeles Times – Emily Alpert Reyes | Published: 12/31/2017

Los Angeles requires people who are paid to try to influence city officials on municipal legislation to register and turn in regular reports on their spending. But it currently exempts some nonprofits from having to register and report their lobbying. The Ethics Commission recommended the city expand its current exemption, allowing any 501(c)(3) organization that gets less than $2 million in total income annually to avoid registering. The commission also recommended exempting any 501(c)(3) nonprofits that were formed primarily to provide assistance to disadvantaged people at reduced rates, no matter how much money they took in.

Florida – Tallahassee Commission Approves Separation Package for City Manager
Tallahassee Democrat – Jeffrey Schweers | Published: 1/3/2018

The Tallahassee City Commission accepted the resignation of City Manager Rick Fernandez. He was on paid administrative leave since November following an investigation by the Florida Commission on Ethics. He was accused of accepting football tickets to a Florida State University football game and receiving a $5,000 catering discount from the city-backed restaurant, The Edison. The tickets were arranged by a lobbying firm owned by Adam Corey, who also owns The Edison. Corey is one of several individuals named in federal subpoenas exploring dealings between the city Community Redevelopment Agency and several high-profile businesspeople.

Massachusetts – Pro-Charter School Group Fined for Hiding 2016 Campaign Donors including Mitt Romney’s Campaign
MassLive – Shira Schoenberg | Published: 1/2/2018

Massachusetts campaign finance officials have required a group that funneled large donations to 2016 ballot questions regarding charter schools and marijuana legalization to disclose the identity of their donors. Officials said Strong Economy for Growth raised and spent $1,168,000 to support the ballot questions. The Office of Campaign and Political Finance required Strong Economy for Growth to form a ballot question committee, disclose its donors, and pay $31,000 to the state for violating campaign finance laws – all the money left in its bank account. The group also agreed not to engage in any election-related activity in Massachusetts through 2018.

Michigan – FBI Wiretaps Reveal How Towing Titan Fiore Built His Empire
Detroit Free Press – Tresa Baldas and Keith Matheny | Published: 12/29/2017

Towing company owner Gasper Fiore was so politically connected that his daughter last year helped write an amendment to the Michigan Department of Transportation budget that ensured his company would win a multimillion-dollar contract, federal documents show. In wiretap evidence, the FBI offers a glimpse into how the Fiore built his towing empire by currying favor with high ranking officials across southeast Michigan. While Fiore has admitted to bribing just one Macomb County official, the FBI says he was in cahoots for years with many, from state lawmakers to police officials to a Detroit councilperson who was dating his daughter.

Missouri – Ethics Complaint Against Big Missouri Campaign Donor is Dismissed
Kansas City Star – Jason Hancock | Published: 1/2/2018

The Missouri Ethics Commission said it “finds no reasonable grounds” to believe businessperson David Humphreys violated state law governing lobbyists and the principals who employ them. State Rep. Mark Ellebracht filed the complaint against Humphreys, who along with his family donated more than $14 million to mostly Republican candidates and campaigns in 2016. At the center of the complaint was Paul Mouton, who was fined last year for illegally lobbying lawmakers on Humphreys behalf without registering.

New York – Howe Emailed Cuomo Officials on Private Accounts
Albany Times Union – Chris Bragg | Published: 12/30/2017

In the years before he pleaded guilty to federal corruption charges, lobbyist Todd Howe regularly emailed top officials in New York Gov. Andrew Cuomo’s administration about government business using their personal email accounts. The use of private email for public business would violate official state policy, and is contrary to Cuomo administration directives to conduct state business on state email accounts, to avoid the perception of an intent to hide communication from the public.

Oregon – Oregon Ethics Report Reveals New Details of How Cylvia Hayes Used Her Position to Profit
Portland Oregonian – Hillary Borrud | Published: 1/4/2018

Former Oregon First Lady Cylvia Hayes violated state ethics laws by using her position for the financial benefit of herself and her business, failing to avoid conflicts-of-interest, and receiving a gift of greater than $50, according to an investigation. Her fiancé, former Gov. John Kitzhaber, resigned in 2015 amid influence peddling allegations related to her contracting. He faces an ongoing inquiry by the state’s ethics watchdog agency. The Oregon Government Ethics Commission will vote whether to agree with the recommendation that violations took place. If so, Hayes will have the opportunity to appeal the ruling.

South Carolina – Golf, Beaches and Power: How utilities wine and dine the public officials that set your rates
Charleston Post and Courier – Andrew Brown | Published: 12/30/2017

Travel and other records reveal how South Carolina’s public service commissioners frequently eat, drink, and play golf with the people they regulate. They also show how on trip after trip, commissioners failed to properly report these as gifts as required under state ethics laws. Selected by state lawmakers, these regulators serve four-year terms and earn more than $100,000. They are supposed to be impartial, balancing the needs of utilities to make fair returns on investments with the rights of customers to pay fair rates. But the analysis of state travel records paints a picture of cozy gatherings and opportunities for influence-peddling.

Virginia – A Random Drawing Out of a Bowl Helped Republicans Win a Tied Virginia Election.
Washington Post – Laura Vozella | Published: 1/4/2018

An official of the Virginia State Board of Elections pulled out the name of Republican David Yancey from a bowl, breaking a tied race that is pivotal to control of the House of Delegates. The outcome means the House remains narrowly in the GOP hands, 51 seats to 49. The spectacle drew national attention as an odd way to decide a highly consequential contest. But it might not be the last word in the saga.

Washington – With Veto of City Council Ordinance, Condon Says Campaign Finance Better Left to the State
Spokane Spokesman-Review – Chad Sokol | Published: 12/29/2017

Spokane Mayor David Condon said he would veto a campaign finance ordinance passed by the city council that would impose new reporting requirements and halve the maximum amount a candidate can receive from any single donor. The mayor said he supports certain efforts to curb the role of “dark money” in politics. But he said the issue is better managed at the state level and predicted the proposed ordinance would not stand up to constitutional challenges.

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.

Q. I’m an in-house lobbyist planning to meet with California legislators to influence state government action. If I go to the meeting accompanied by a registered lobbyist, isn’t my time at the meeting exempt from counting toward the lobbyist registration threshold under the “ride-along” exception?

A. That depends. The California Fair Political Practices Commission (FPPC) amended its regulations in 2016 to narrow the so-called “ride-along” exception.  The exception is now only available to in-house employees who act as “subject matter experts” in communicating with California government officials while accompanied by a registered lobbyist employed or retained by their employer. If the exception does not apply to your circumstances, you must…

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Legislative leaders successfully petitioned lawmakers to convene a special session scheduled for Friday, January 4, 2018.

Gov. Dannel Malloy had been pressuring legislators to convene a special session for a month to rebalance the budget they passed in October.

Legislative leaders said they will address the budget shortfall but first want to reverse cuts to the Medicare Savings Program.

State and Federal Communications is hitting the ground running in 2018! Catch us at one of these events in January:

January 8-12 PAC: Public Affairs Institute, Laguna Beach, CA

January 9-13 PLEN Women in Public Policy, Washington, D.C.

January 15 Akron Urban League; Remember Dr. King’s Legacy Breakfast, Akron, OH

January 18 Akron Roundtable, Akron, OH

January 24 Akron Press Club, Akron, OH

January 24-27 US Conference of Mayors Winter Meeting, Washington, D.C.

January 26-27 NCSL Executive Committee Meeting, Charleston, S.C.

Lobbying

South Carolina: “Golf, Beaches and Power: How utilities wine and dine the public officials that set your rates” by Andrew Brown for Charleston Post and Courier

Campaign Finance

Maryland: “Democrats Slam Hogan Over RGA Donation from Poultry Company” by Fenit Nirappil for Washington Post

Massachusetts: “Pro-Charter School Group Fined for Hiding 2016 Campaign Donors including Mitt Romney’s Campaign” by Shira Schoenberg for MassLive

Virginia: “Several New Delegates Form Caucus to Reduce Corporate Money in Virginia Politics” by Patrick Wilson for Richmond Times-Dispatch

Ethics

“Partisans, Wielding Money, Begin Seeking to Exploit Harassment Claims” by Kenneth Vogel for New York Times

“Paul Manafort Sues Mueller and Asks a Judge to Narrow the Russia Investigation” by Matt Apuzzo for New York Times

“How the Federal Government Hides Sexual Harassment Payouts” by Andrew Restuccia, Emily Goldberg, and Rebecca Morin for Politico

Illinois: “CPS Employees Stole Gift Cards Meant for Students, Watchdog Says” by Juan Perez Jr. for Chicago Tribune

Michigan: “Ex-Detroit Police Official Waffles, Pleads Guilty” by Robert Snell for Detroit News

Missouri: “Missouri Democrats Place Target on Greitens Through Pre-Filed Legislation” by Rudi Keller for Columbia Daily Tribune

New York: “Corruption Trials Loom over Albany as New Year Begins” by Joe Mahoney for Oneonta Daily Star

Legislative Issues

Kentucky: “House Speaker Who Resigned Over Harassment Claim Reconsiders” by Adam Beam (Associated Press) for Columbus Ledger-Enquirer

Welcome to our 25th year of providing the lobbying and political contributions compliance answers you need. It has been a lot of fun and we thank our valued clients throughout the years. In our Silver Anniversary year, we have (at least) 25 reasons for you to work with State and Federal Communications.

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We look forward to working with you in 2018 and beyond.

Thank You and Happy New Year.