Gov. Larry Hogan signed House Bills 390 and 426 into law. Both bills amend the procurement code.

House Bill 390 requires business to file a public disclosure form if, during a calendar year, a business enters into contracts, leases, or other agreements with the state worth $200,000 or more.

House Bill 426 amends the dollar value of small procurements from $25,000 to $50,000.

Both bills will become effective on October 1, 2017.

The first special session of the 2017 New Mexico Legislature adjourned sine die on May 30, 2017.

Gov. Susana Martinez signed legislation reinstating funding for higher education and vetoed a bill raising taxes.

Both the House and Senate were in session for less than one hour.

Lobbying

“White House Backs Down on Keeping Ethics Waivers Secret” by Eric Lipton for New York Times

Pennsylvania: “Lack of Gift Ban for Pa.’s Legislators Continues to Miff Critics” by Angela Couloumbis (Philadelphia Inquirer) and Karen Langley for Pittsburgh Post-Gazette

Campaign Finance

Arizona: “Court: Former Attorney General Tom Horne’s rights violated in campaign case” by Yvonne Wingett Sanchez for Arizona Republic

Missouri: “Candidate Spending Gets Little Scrutiny under Missouri Ethics Laws” by Ellen Cagle for Southeast Missourian

Washington: “Citizen Watchdog Peppers Washington State with Campaign-Finance Complaints Against Dems” by Joseph O’Sullivan for Seattle Times

Ethics

“A Constitutional Puzzle: Can the president be indicted?” by Adam Liptak for New York Times

“Congress Expands Russia Investigation to Include Trump’s Personal Attorney” by Brian Ross and Matthew Mosk for ABC News

“How Michael Flynn May Have Run Afoul of the Law” by Charlie Savage for New York Times

Kentucky: “Bevin, Facing Ethics Complaint, Blasts Journalist Over Reporting About His Mansion” by Allison Ross (Louisville Courier-Journal) for Lexington Herald-Leader

Michigan: “Lawyer Is 7th Person Charged in Macomb County Corruption Probe” by Tresa Baldas for Detroit Free Press

Legislative Issues

Texas: “Texas Lawmaker Threatens to Shoot Colleague After Reporting Protesters to ICE” by Matthew Haag for New York Times

State and Federal Communications, Inc. is upping our green-game with help and guidance from Downtown Akron Partnership and the City of Akron. We recently began a program that will allow us to participate in the city’s single-stream recycling program for not only cans and cardboard, but for bottles, cartons, cups, and many other items generated in our workplace environment!

State and Federal Communications has always taken seriously the proper disposal and recycling of our business-related electronics, batteries, legacy fluorescent bulbs, and mountains of shipping cardboard and paper; proudly reporting over 3 tons of recycled materials to Summit County ReWorks for the 2016 calendar year!

By expanding our own program and coordinating with Akron community partners, we step closer to achieving our company and employee goals of being better stewards. Many employee-generated items within the office can now be processed for collection by the city within their single-stream recycling program.

The Downtown Akron Partnership program, working with the City of Akron and others, provides resources within our downtown district to promote and build a vibrant and valuable downtown. We are proud to be part of this great community!

Members of Congress could be banned from being lobbyists for life if legislation introduced this month becomes law.

Senate Bill 1189, Close the Revolving Door Act of 2017, places a lifetime ban on current members of Congress from becoming lobbyists. Senators Michael Bennet, Cory Gardner, and Al Franken introduced the legislation, which also increases the statutory staff restrictions on lobbying from one year to six years.

Additionally, the bill bans lobbyists from joining Congressional staffs or committee staffs they lobbied for six years and increases the maximum penalty for violating the Lobbying Disclosure Act.

“Our legislation would put in place much-needed reforms-by not only banning members of Congress from becoming lobbyists, but also by making the industry become more accountable and transparent,” Franken said in a press release.

Gov. Kim Reynolds has been sworn in as Iowa’s 43^rd governor.

Reynolds filled the vacancy left by former Gov. Terry Branstad’s ambassadorship to China.

Reynolds will serve as governor through the end of 2018.

Photo of Gov. Kim Reynolds from the Iowa Governors website.

The Oklahoma Legislature adjourned sine die on Friday, May 26. As a result, all rule amendments proposed and approved by the Oklahoma Ethics Commission became law.

Effective immediately the lobbyist registration renewal deadline has been extended from December 31 to January 15. Changes to lobbyist reporting include moving all executive lobbyist report due dates as well as the January and July legislative lobbyist reports due dates to the 15th of the month. All other legislative reports remain due on the 5th of the month. Campaign finance rule amendments include new requirements for committees formed for the purpose of influencing a state question. Such committees must include the number of the state question as part of the name of the committee. They must also file reports any time an expenditure of $5,000 or more is made to advocate the passage or defeat of a state question. The reports are due at the same time as those for independent expenditures and electioneering communications.

Effective January 1, 2018, the limit for lobbyist or lobbyist principal gifts given in recognition of infrequently occurring occasions of personal significance will drop from $200 to $100 in any calendar year. Such gifts will be required to be given and received contemporaneously with the occasion or at times when such gifts are traditionally given. Infrequently occurring occasions of personal significance will not include annual events such as birthdays or anniversaries; rather, they will refer only to major life events. Lastly, a lobbyist providing a meal to a state officer or employee will be required to be present for the meal. Similarly, a lobbyist providing a gift including attendance at an event will be required to attend the event with the recipient of the gift.

Campaign Finance

Connecticut: “Divided House Forwards Campaign Bill to Senate” by Christine Stuart for CTNewsJunkie.com

Missouri: “Missouri Pay-to-Play Allegations Heat Up Over New Links Between Lawmaker, Megadonor” by Jason Hancock for Kansas City Star

Ohio: “Dayton Mayor Using Uncapped Mayoral Campaign Fund for Gubernatorial Bid, AP Reports” by Associated Press for Cleveland Plain Dealer

Ethics

“Jared Kushner Now a Focus in Russia Investigation” by Matt Zapotosky, Sari Horwitz, Devlin Barrett, and Adam Entous for Washington Post

Alabama: “Mike Hubbard Appeals Ethics Convictions; Says Prosecutors Misinterpreted Law” by Brian Lyman for Montgomery Advertiser

Arizona: “Ex-Corporation Commissioner Gary Pierce, Lobbyist Jim Norton Indicted” by Rachel Leingang and Hank Stephenson for Arizona Capitol Times

California: “Taxpayer Money Wasted on Bar Tabs, Trips to Las Vegas and Expensive Electronics in South El Monte, Audit Shows” by Adam Elmahrek for Los Angeles Times

South Carolina: “More Than 50 Accusations Against Public Officials Await Stalled South Carolina Ethics Commission” by Maya Prabhu for Charleston Post and Courier

Texas: “Bills Aimed at Restricting Lobbyists Die in Texas House” by Sean Collins Walsh for Austin American-Statesman

Elections

“The GOP Inherits What Trump Has Wrought” by Karen Tumulty and Robert Costa for Washington Post

“‘Anyone … with a Pulse’: How a Russia-friendly adviser found his way into the Trump campaign” by Tom Hamburger and Rosalind Helderman for Washington Post

Lobbying

Missouri: “Greitens Nonprofit Lobbies for Legislation, But Isn’t Registered to Lobby” by Kurt Erickson for St. Louis Post Dispatch

The first special session of 2017, adjourned sine die around 3:00 a.m., on May 26, 2017.

Lawmakers passed a public works package and other pieces of the budget.

Gov. Mark Dayton is expected to sign all of the legislation passed during the special session.

On May 23, Rep. Mitch Greenlick introduced House Joint Resolution 32, proposing a ballot measure to impose a $500 limit on political contributions from any organization that gets more than half of its funding from public sources.

HJR 32 seeks to limit influence from Medicaid providers that profit from the Oregon Health Plan while making large political contributions to lawmakers.

Under current law, organizations may make unlimited contributions and expenditures to candidates and political committees.

See what’s happening in government relations this week in our News You Can Use Video Digest. Enjoy!

National:

Sean Hannity Done Talking About Seth Rich and WikiLeaks ‘for Now’ as Fox News Retracts Story
Washinton Post – Kristine Phillips and Peter Holley | Published: 5/24/2017

Fox News retracted a story linking the murder of a Democratic National Committee staff member with the email hacks that aided Donald Trump’s campaign, effectively quashing a conspiracy theory that had taken hold across the right-wing news media. The story of the murdered aide, Seth Rich, who was 27 when he was shot near his Washington, D.C. home in July, has been seized on by conservative pundits as an alternative narrative to the cascade of damaging revelations about the Trump administration’s ties to Russian officials who meddled in the presidential election. No evidence to support that theory has emerged, and the Washington Metropolitan Police Department is still investigating the case.

Work and Politics: What rights do employees have?
USA Today – Charisse Jones and Michael Izzo | Published: 5/16/2017

A U.S. House member’s letter that helped push a New Jersey attorney to resign after her boss was told she was a grassroots “ringleader,” sparked questions about how much an employer can clamp down on an employee’s activism. In an era of heightened political tensions, when many Americans are marching and boycotting for perhaps the first time, the case is showing how politics and the workplace can collide.

Federal:

‘Soft Money’ Rules Upheld by Supreme Court
Bloomberg BNA – Kenneth Doyle | Published: 5/23/2017

The U.S. Supreme Court turned away a Republican challenge to a federal campaign finance restriction that prevents political parties from raising unlimited amounts of cash to spend on supporting candidates. The Republican Party of Louisiana had argued a provision of the 2002 Bipartisan Campaign Reform Act (BCRA) violates its free speech rights. But the justices let stand a lower court’s ruling that rejected the challenge. BCRA barred state and local parties from taking unlimited donations for any activities concerning federal elections. Such contributions are often called soft money because they are unregulated.

Trump Asked Intelligence Chiefs to Push Back against FBI Collusion Probe after Comey Revealed Its Existence
Washington Post – Adam Entous and Ellen Nakashima | Published: 5/22/2017

President Trump called two of the nation’s top intelligence officials – Dan Coats, the director of National Intelligence, and Admiral Michael Rogers, director of the National Security Agency – and urged them to publicly deny there is any evidence of collusion between his campaign and the Russians. The requests came in the days after then-FBI Director James Comey publicly confirmed the FBI was probing the Trump-Russia connection in his testimony before the House Intelligence Committee on March 20. Coats and Rogers refused to comply with the requests, which they both deemed to be inappropriate.

White House Moves to Block Ethics Inquiry into Ex-Lobbyists on Payroll
New York Times – Eric Lipton | Published: 5/22/2017

The Trump administration is trying to block an effort from the Office of Government Ethics (OGE) to find out the names of lobbyists who have been granted waivers to work in the federal government. The White House sent a letter to OGE Director Walter Shaub, challenging the agency’s authority to see the waivers. President Trump in January signed an executive order that banned lobbyists hired in his administration from working with former clients or on issues they had been involved with for two years unless they received a waiver. Dozens of former lobbyists and industry lawyers are now working in the administration. Keeping the waivers confidential would make it impossible to know whether those officials are violating ethics rules or have been given a pass to ignore them.

From the States and Municipalities:

Arizona – Phoenix Moves to Implement New Rules for Lobbyists Following Republic Report
Arizona Republic – Rob O’Dell and Dustin Gardiner | Published: 5/23/2017

The city council gave preliminary approval to amending Phoenix’s lobbying ordinance so those who do not comply with its registration or expense disclosure rules can face sanctions, including fines of up to $2,500, suspension from lobbying, and possible jail time for repeated offenses. The new law also would apply rules to lobbyists’ communication with far more officials at the city. The council also approved a news definition of “lobbyist.” The council will hold one more vote to finalize the changes.

Arkansas – Panel: Dallas Cowboys owner violated Arkansas ethics law
Arkansas Online – John Lyon (Arkansas News Bureau) | Published: 5/20/2017

Dallas Cowboys owner Jerry Jones, who grew up in North Little Rock, paid for the city’s police officers and their families to attend a Cowboys home game of their choice late last season, with travel and lodging accommodations included. The gifts were in recognition of police service and volunteer work in the community. The Arkansas Ethics Commission ruled Jones had committed “an unintentional violation” by making the gift. Jones will receive a warning letter. No sanction was imposed because of his reliance on “the erroneous conclusion” in a North Little Rock City Council resolution. Through that resolution, the council accepted the gifts and subsequently passed them along to the officers as an employee benefit.

Iowa – Ethics Complaint Against Iowa Gun Owners Leader Dismissed
Des Moines Register – Brianne Pfannenstiel | Published: 5/22/2017

A man who has sometimes registered as a statehouse lobbyist was called a “liar” and “immoral,” but the House Ethics Committee dismissed a complaint against Iowa Gun Owners Executive Director Aaron Dorr. The complaint alleged Dorr was telling members of his group that he was lobbying lawmakers, but while Dorr has registered as a lobbyist in the past, he did not this year. Dorr gave documents to the committee saying he had not been designated as a lobbyist for Iowa Gun Owners and was not being paid to be its executive director. Committee Chairperson Rob Taylor said unless the panel decided to issue a subpeona for Dorr’s tax returns and bank records, they would have to accept that explanation.

Missouri – New Campaign Finance Rules Ignore Missouri Voters’ Decision
Governing – Kurt Erickson (Tribune News Service) | Published: 5/23/2017

The Missouri Ethics Commission issued an opinion saying campaign committees formed by party leaders in the House and Senate are no longer limited to contributions totaling $25,000 annually. Commission Executive Director James Klahr said those committees can once again receive unlimited donations. Under a November change to the state constitution, Missouri voters overwhelmingly capped contributions to individual candidates for office at $2,600 per election. Donations to a political party were capped at $25,000.

Montana – Bullock Vetoes Bill to Raise Allowable Campaign Contributions
Billings Gazette – Holly Michels | Published: 5/19/2017

Montana Gov. Steve Bullock vetoed a bill that would have revised campaign finance laws in the state and made changes to the commissioner of political practices office. Bullock said Senate Bill 368 would undermine the agency’s effectiveness and raise contribution limits far above what residents think is acceptable. The legislation would have increased the filing fees for legislative candidates, changed laws related to investigation of campaign practices, created an appeal procedure for certain complaints, and prohibit the commissioner from filing criminal action against a candidate for some violations.

New Mexico – Loophole and Vague Laws Create Ambiguity in Lobbyist Reporting
New Mexico In Depth – Sandra Fish | Published: 5/19/2017

New Mexico’s lobbyist reporting law has been criticized as lacking transparency. A loophole in a 2016 reform effort changed the reporting requirements for organizations and people they hire who spend money to influence public officials in New Mexico. Critics also say the law’s vagueness results in a situation in which lobbyists are now free to report some expenses, or not. And how they report them depends on a lobbyist’s interpretation of the rules.

New York – JCOPE Settlement Expected to Reveal Glenwood Behind $690K
Albany Times Union – Chris Bragg | Published: 5/23/2017

The Joint Commission on Public Ethics reached a settlement with nonprofit lobbying group Pledge 2 Protect that is expected to require the group to disclose that real estate giant Glenwood was intended to force groups like Pledge 2 Protect, issue-oriented nonprofits with lobbying operations, to disclose their donors. But in a series of six transactions in 2013, nearly $700,000 was funneled from previously unknown donors to a newly founded boutique law firm, Marquart & Small, which then passed the funds on to Pledge 2 Protect. Only the name of Marquart & Small showed up on subsequent lobbying disclosure filings, not the names of the original donors.

North Carolina – Supreme Court Ruling Wipes Out Republican-Drawn House Districts in N.C.
USA Today – Richard Wolff | Published: 5/22/2017

The U.S. Supreme Court ruled North Carolina’s Republican-controlled Legislature unlawfully relied on race when drawing two of the state’s congressional districts. The decision continued a trend at the court, where justices have found racial considerations improperly predominated in redistricting decisions by GOP Legislatures in Virginia, Alabama, and North Carolina. Some involved congressional districts, others state legislative districts. The states had contended their efforts were partisan attempts to protect their majorities, which the Supreme Court in the past has allowed, rather than attempts to diminish the impact of minority voters, which is forbidden. But the justices declared North Carolina had relied too heavily on race in their efforts to “reshuffle,” voters from one district to another.

South Carolina – How South Carolina Lawmakers Are Re-examining Their Rule Book after Statehouse Probe Indictments
Charleston Post and Courier – Andy Shain | Published: 5/21/2017

The House and Senate ethics committees are reviewing their advisory opinions to determine if alterations or updates are needed to ensure state lawmakers get the proper guidance to stay within the boundaries of South Carolina’s ethics law. The law does not cover every potential personal conflict in a legislator’s campaign or legislative duties. So, lawmakers receive opinions from their ethics panels to fill the gaps and create a more complete rulebook for them to follow. Since 2014, four legislators have been indicted in an ongoing probe of statehouse corruption.

Virginia – A ‘Personal Friend’ Exemption on Gifts to Virginia’s Elected Officials Leaves Open an Unlimited Loophole
The Virginian-Pilot – Bill Bartel | Published: 5/23/2017

Changes to Virginia’s ethics laws that went into effect last year place a $100 annual limit on gifts from a lobbyist, his or her clients, or someone seeking business with the state. The reform ended a common practice of lobbyists providing lawmakers with unlimited gifts, such as expensive sports tickets or pricey dinners. A new ethics council was set up advise officials and to approve acceptance of specific gifts or travel costing more than $100. But there remained a large exception: there is no limit on gifts to an officeholder or immediate family members from a “personal friend” who is not a lobbyist, a lobbyist’s client, or someone seeking state business.

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.

On May 23, the Washington Legislature adjourned its first special session sine die.

Lawmakers were unable to reach agreement on a budget bill during the session forcing Gov. Jay Inslee to call for a second 30-day special session to start immediately after adjournment.

A two-year operating budget needs signed into law by June 30 or the state faces a partial government shutdown.

The Phoenix City Council voted this week to amend the city’s lobbying ordinance to create sanctions for those who don’t comply with the lobbyist registration or expense disclosure rules.

Current city code includes no punishment for those who ignore the rules. The amendments will also include a clarification and expansion of the term lobbying to include city executives, department directors, the city manager and his top staffers, and board and commission members.

The strengthened rules raise fines and increase the amount of time lobbyists could be suspended from contacting city officials. Phoenix’s lobbying rules are currently unenforceable.

City Council will vote in the coming weeks to finalize the changes.