Lobbying

New York: “De Blasio Ally Didn’t Register as Lobbyist Despite Big Push for a Donor” by William Neuman for New York Times

Ethics

“Manafort Agrees to Turn Over Notes That Could Provide New Details on Trump Tower Meeting with Russian Lawyer” by Rosalind Helderman and Karoun Demirjian for Washington Post

“Five Sentenced to Days in Jail for Supreme Court Disruption Over Campaign Finance” by Spencer Hsu for Washington Post

Elections

“Federal Judge Allows Trump Commission’s Nationwide Voter Data Request to Go Forward” by Spencer Hsu for Washington Post

California: “A New Suit Says Lawmakers Broke the Law When They Changed California’s Recall Election Rules” by John Myers for Los Angeles Times

Virginia: “Transgender Woman Challenges Virginia Bathroom Bill Sponsor” by 2017 Sarah Rankin (Associated Press) for Roanoke Times

Legislative Issues

“In Congress, New Fears and New Protections in Wake of Baseball Team Shooting” by Ed O’Keefe for Washington Post

Procurement

Illinois: “New Details Emerge of Former DCFS Head’s Controversial Contracts, Hires” by David Jackson and Gary Marx for Chicago Tribune

The North Carolina Supreme Court ruled that pending Gov. Roy Cooper’s legal challenge of Senate Bill 68, which combines state elections and ethics boards, the new merged board can remain vacant.

The boards merged in June into the state Board of Elections and Ethics Enforcement after a three-judge panel ruled against the governor, but Cooper has yet to appoint any board members.

With local elections coming up in the fall, some county elections boards are finding themselves in tough positions awaiting appointments to fill seats left open due to resignations because the state board appoints county board members.

The case is scheduled for arguments at the Supreme Court on August 28.

Lobbying

“Cash Surges to Lobby Firms in Trump Era” by Megan Wilson for The Hill

Arizona: “Arizona Legislators Attend Conference with Help from Corporations That Lobby Them at Home” by Yvonne Wingett Sanchez for Arizona Republic

Campaign Finance

Michigan: “GOP Consultant’s Purchase of Michigan Talk Radio Stations Sparks Concerns” by Paul Egan for Detroit Free Press

Ethics

California: “Is Riverside’s Ethics Code Broken? Seven Hearings, $57,000 Later, Some Say Yes” by Alicia Robinson for Press-Enterprise

Florida: “Miami Lobbyist’s Business Made $1 Million Profit on State Anti-Hazing Contract” by Arek Sarkissian for Naples News

South Carolina: “FBI Investigating South Carolina Statehouse Corruption, Could Expand Scope of State Probe” by Andy Shain, Glenn Smith, and Schuyler Kropf for Charleston Post and Courier

Elections

“Local Governments Keep Using This Software – But It Might Be a Back Door for Russia” by Jack Gillum and Aaron Davis for Washington Post

“Ivanka Trump Received at Least $12.6 Million Since 2016, Disclosure Shows” by Rachel Abrams and Jesse Drucker for New York Times

Legislative Issues

Nevada: “20 Years of Term Limits: How the faces of Nevada’s Legislature have changed” by Yvonne Gonzalez for Las Vegas Sun

On July 20, the Washington Legislature adjourned its third special session sine die.

Lawmakers were unable to reach agreement on a budget bill due to negotiations breaking down on a water-rights bill that was tied to the budget.

Gov. Jay Inslee indicated that he would not call lawmakers back for another overtime session unless they have a firm plan that will lead to a vote on the capital budget.

On July 27, the Legislature is expected to convene again for a one-day special session to pass the state’s capital construction budget. This will be the Legislature’s third special session.

Lawmakers were previously unable to agree to a compromise on the budget, but have reportedly reached an agreement with enough support to call a special session.

Under the Alaska Constitution, the approval of two-thirds of the Legislature is necessary to call a special session.

Illinois Gov. Bruce Rauner is threatening to call lawmakers back to Springfield if he does not receive Senate Bill 1, an education funding reform bill, before noon today.

Legislators already passed the bill but chose not to send it to the governor after Rauner promised to amendatory veto the legislation to remove grant funding for Chicago Public School pensions.

Some lawmakers are seeking ways to avoid convening an expensive legislative session and have, instead, suggested a meeting between legislative leadership and the governor.

Ethics

“Trump Fills Top Job at Government Ethics Office with a Temporary Appointment” by Eric Lipton for New York Times

“‘I Did Not Collude,’ Kushner Says in Prepared Remarks to Senators” by Matt Apuzzo and Maggie Haberman for New York Times

“Trump Team Seeks to Control, Block Mueller’s Russia Investigation” by Carol Leonnig, Ashley parker, Rosalind Helderman, and Tom Hamburger for Washington Post

“Mueller Expands Probe to Trump Business Transactions” by Greg Farrell and Christian Berthelsen for Bloomberg.com

Kentucky: “Complaints Over Gov. Matt Bevin’s Anchorage Mansion Unanimously Dismissed by Ethics Panel” by Tom Loftus for Louisville Courier-Journal

Lobbying

“Lobbyist Gift-Giving at Issue in More States” by Scott Rodd for Governing

Illinois: “Ex-Ald. Singer Among 6 Fined for Illegally Lobbying Emanuel Via Email” by Hal Dardick for Chicago Tribune

Campaign Finance

New Mexico: “Pearce Wants to Tap Funds for Gov. Race” by Dan McKay for Albuquerque Journal

Elections

North Carolina: “NC Elections and Ethics Oversight Is Frozen Between Old and New, with Local Votes Approaching” by Anne Blythe for Raleigh News and Observer

Following a brief adjournment on July 3, the Maine Legislature convened for one day on July 20. The Legislature will meet for one additional legislative day on August 2.

The 128^th regular session has been delayed twice due to disagreements on the budget and other topics.

On August 2, lawmakers will consider possible objections of Gov. Paul LePage to any bill or resolution presented to him by the Legislature.

Becky Campbell is back to deliver this week’s state government and ethics news you can use!

Federal:

Citing Recusal, Trump Says He Wouldn’t Have Hired Sessions
New York Times – Peter Baker, Michael Schmidt, and Maggie Haberman | Published: 7/19/2017

President Trump said the never would have appointed Attorney General Jeff Sessions had he known Sessions would recuse himself from overseeing the Russia investigation that has dogged his presidency, calling the decision “very unfair to the president.” Trump complained that Sessions’ decision ultimately led to the appointment of a special counsel that should not have happened. In an interview with The New York Times, the president accused former FBI Director James Comey of trying to leverage a dossier of compromising material to keep his job. Trump also took on Robert Mueller, the special counsel now leading the investigation into Russian meddling in last year’s election.

Couple Wants to Make Lobbying Accessible and ‘Good’
Roll Call – Alex Gangitano | Published: 7/13/2017

Less than a year after their wedding, Billy and Callie DeLancey started Lobbyists 4 Good to give the public access to K Street lobbyists. The group uses a crowdfunding platform, which allows anyone to create advocacy campaigns around social issues they care about and start raising money. Anybody who creates a campaign and raises $31,000 within a year gets access to either a lobbyist or a lobbying firm on retainer for six months to work on the issue, or a partnership with other nonprofits in the field. “Long-term, we hope to see as many lobbyists working for the people as there are lobbyists working on behalf of the business community,” Billy DeLancey said.

FEC Contacts with IRS Broke No Rules, Report Says
Bloomberg BNA – Kenneth Doyle | Published: 7/19/2017

The FEC’s inspector general found that agency staffers contacted former IRS official Lois Lerner about tax-exempt groups involved in politics, but the contacts did not violate any rules and were not intended to target conservative groups. The conclusion contradicted suggestions by congressional Republicans and others that FEC and IRS staff deliberately targeted Tea Party and other conservative nonprofit groups. The controversy followed the release of a report by the Treasury Inspector General for Tax Administration, which said certain political organizations, primarily conservative groups, received more scrutiny than others when applying for tax-exempt status.

Health Care Has G.O.P. Down. Tax Cuts May Be the Cure.
New York Times – Jeremy Peters | Published: 7/19/2017

With the collapse of the effort to dismantle the Affordable Care Act, the Republican vision of enacting significant conservative reform fell victim to the intraparty division, dysfunction, and gridlock that one-party control had been expected to eliminate. Now, some of the conservative groups that helped the GOP win control of Washington are increasingly worried their party’s inability to pass ambitious legislation will imperil its chances in next year’s elections. Republicans fear they could be looking at a worst-of-two-worlds scenario in which they have a historically unpopular president dogged by persistent legal and ethical questions, at the same time they remain unable to restore a semblance of functionality to Capitol Hill.

Outgoing Ethics Chief: U.S. Is ‘Close to a Laughingstock’
New York Times – Eric Lipton and Nicholas Fandos | Published: 7/17/2017

The outgoing leader of the federal government’s ethics office warns in a new interview of the ethics crisis created by President Trump, saying he thinks the country is “pretty close to a laughingstock.” Walter Shaub Jr. said the Trump administration had flouted or directly challenged long-accepted norms in a way that threatened to undermine the United States’ ethical standards, which have been admired around the world. Shaub called for nearly a dozen legal changes to strengthen the federal ethics system – changes that, in many cases, he had not considered necessary before Trump’s election.

From the States and Municipalities:

Alabama: Gov. Kay Ivey Bans Lobbyists from Executive Branch Appointments
AL.com – Mike Cason | Published: 7/13/2017

Alabama Gov. Kay Ivey banned officials in the executive branch from appointing registered lobbyists to serve on state boards and commissions. In an executive order, Ivey said more than 100 registered lobbyists now serve on boards or commissions. The order says lobbyists represent the interests of their clients and employers, rather than the public. Ivey said that creates conflicts-of-interest and undermines the public’s confidence in the government.

California: What Happens to Local News When There Is No Local Media to Cover It?
Washington Post – Paul Farhi | Published: 7/17/2017

In many respects, East Palo Alto, California, is a “news desert,” a community overlooked, if not entirely ignored, by the media. It is one of thousands of towns across America in which community reporting is shrinking and sometimes disappearing. The biggest factor, according to study of the phenomenon, are cutbacks, consolidation, and closures of daily and weekly newspapers, the traditional lifeblood of local reporting in the U.S. The pressures on local news outlets have been building for years, driven by the recession and the disruption caused by the shift to digital media.

Colorado: What Does $80 Million Buy Oil and Gas Interests? Voter Profiles, Door Knocking and Influence at Local and Statewide Levels
Denver Post – Christopher Osher | Published: 7/16/2017

The oil and gas industry has spent more than $80 million in Colorado over the past four years to shape public opinion and influence campaigns and ballot initiatives. That political muscle came into play recently when the industry successfully lobbied to defeat legislation tightening regulations in the wake of a fatal home explosion investigators have blamed on a severed gas pipeline. The new approach has been broad, sustained, and effective in its reach, according to interviews and a review of industry documents, campaign finance records, and public remarks by an industry consultant who helped develop the strategy.

Florida: Corey’s Ties to Others in FBI Probe Run Deep
Tallahassee Democrat – Jeffrey Schweers | Published: 7/14/2017

Lobbyist and restaurateur Adam Corey has built a business and political portfolio that has seen its share of success and failure, even as it has drawn him deep into the circle of Tallahassee’s new generation of power elite. Those twin rails of ambition have also drawn Corey into the midst of an FBI probe of the city’s redevelopment agency and several other high-profile entrepreneurs it has done business with in the last five years. Front and center are Corey and former lobbying partner at Unconventional Strategies, Nick Lowe, who arranged meetings between city and county officials and three mysterious developers whom sources say are FBI undercover agents.

Illinois: Emanuel Email Case Nets Five More Lobbying Violations
Better Government Association – Jared Rutecki | Published: 7/19/2017

The Chicago Board of Ethics found that five more people who sought to influence City Hall by contacting Mayor Rahm Emanuel on his personal email broke the city’s lobbying laws. The board also leveled fines of $2,500 against an Emanuel campaign donor and the husband of a city council member that it had found illegally lobbied the mayor without being registered lobbyists. In addition, the board released a list of more than two-dozen lobbyists it said had failed to undergo required lobbyist training and could be subject to fines of up to $750 for every day they are in non-compliance.

New York: Airbnb Fights Back Against Lobby Groups, Demands Info on Their Funding Sources
New York Daily News – Kenneth Lovett | Published: 7/17/2017

The battle between Airbnb and its hotel industry-backed nemesis ShareBetter is intensifying. The hotel listing site plans to file a complaint with the New York Joint Commission on Public Ethics alleging the advocacy group failed to register as a lobbyist. The move comes after it was reported that ShareBetter pays for spies who pose as Airbnb customers to expose illegal listings. Airbnb claims that the group failed to register as a lobbyist and disclose its funding and expenses, even though it is legally required to do so.

South Dakota: Revolving Door Rarely Swings for Lawmakers Returning as Lobbyists
Sioux Falls Argus Leader – Dana Ferguson | Published: 7/17/2017

A review identified 14 former South Dakota legislators who made the jump to lobbyist since 2012 after serving in office between 2006 and 2017. Only four registered less than two years after vacating their legislative seats. Under a state law that took effect recently, the required waiting period was extended from one year to two. Supporters said the added buffer time was needed to prevent undue influence of lawmakers returning to lobby their peers. Meanwhile, lawmakers who transitioned to lobbyists more quickly said 12 months is enough of a time cushion.

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.

Gov. Phil Bryant announced special elections for House Districts 38 and 54 will take place on November 7, 2017.

Democrat Tyrone Ellis retired from his District 38 seat and Republican Alex Monsour left this District 54 seat to become a Vicksburg alderman.

A special runoff election, if necessary, will be held on November 28, 2017. The deadline for candidates to qualify is September 18.

Lobbying

“Couple Wants to Make Lobbying Accessible and ‘Good’” by Alex Gangitano for Roll Call

Florida: “Lobbyist Give $2,000 to Miami Politician After He Appointed Him to Powerful Board” by Jerry Iannelli for Miami New Times

Illinois: “Emanuel Email Case Nets Five More Lobbying Violations” by Jared Rutecki for Better Government Association

Campaign Finance

“FEC Contacts with IRS Broke No Rules, Report Says” by Kenneth Doyle for Bloomberg BNA

Maine: “Three of Four Casino Campaign PACs Fail to Meet Finance Reports Deadline” by Steve Mistler for Maine Public Radio

Missouri: “Gov. Greitens’ Nonprofit Gives $250,000 in Dark Money to Right-to-Work PAC” by Jason Hancock and Neil Nakahodo for Kansas City Star

Missouri: “Lawmaker from Berkeley Fined $114,000 for Campaign Finance Violations” by Kurt Erickson for St. Louis Post-Dispatch

Tennessee: “Nashville Sen. Thelma Harper’s Campaign Report Showed More Money Spent Than in Account” by Dave Boucher for The Tennessean

Elections

“Trump Election Commission, Already Under Fire, Holds First Meeting” by Michael Wines for New York Times

Legislative Issues

“For Republican Party, Governing Is a Long-Term Problem” by Jeremy Peters for New York Times

Bill No. 35-17 was signed by County Exec. Kevin Kamenetz on July 12, 2017.

Effective August 26, 2017, registered lobbyists will be required to complete ethics training within the first six months of registration and once a year thereafter. The training may be completed in person or online.

The Ethics Commission has yet to develop the training and will have more information available later this year.

The final version of the bill will be available after the County Council’s meeting on August 7, 2017. The current version of the bill, with an incorrect effective date, is available.

The Missouri Ethics Commission recently issued an advisory opinion clarifying campaign finance rules for corporations seeking to contribute to PACs.

Currently, a corporation may not contribute its own funds to its connected PAC, but it may contribute direct corporate funds to an unconnected PAC. The new opinion provides additional guidance on whether a corporation and a PAC are considered connected for the purpose of campaign finance law.

If contributions to a PAC are from a corporation’s general treasury, and not from the corporation’s officers, employees, or spouses thereof, it is possible the PAC is not connected to the organization. In such a scenario, if the corporation does not expend funds or provide services or facilities to administer or maintain the PAC, and it does not expend funds or provide services to solicit contributions to the PAC from its members, officers, directors, employees, or security holders, it is not a connected organization. This is true even when the PAC is funded 100 percent by a corporation’s general treasury funds.

Moreover, assuming the corporation did not establish the PAC and does not serve as a connected organization, it may make unlimited monetary contributions from the corporate treasury.