Lobbying

“New Registration Details Manafort’s Lobbying for Group with Pro-Russia Ties” by Megan Wilson for The Hill

Campaign Finance

Massachusetts: “Regulator Sees ‘Evidence of Violations’ at Thornton Law Firm” by Andrea Estes for Boston Globe

Missouri: “Missouri Governor to Pay Fee for Using Nonprofit Donor List” by David Lieb (Associated Press) for U.S. News & World Report

Washington: “Washington State Senators Tap Surplus Campaign Money for Food, Clothes, Furnishings” by Joseph O’Sullivan for Seattle Times

Ethics

“Ethics Rules Waivers for Trump’s Team to Get Federal Scrutiny” by Bill Allison for Bloomberg.com

Florida: “Hooters ‘Calendar Girl’ and Playboy ‘Miss Social’ Were Artiles’ Paid Consultants” by Mary Ellen Klas for Miami Herald

Florida: “Miami Firm Involved in Anti-Hazing Program Did Not Detail Use of $1 Million from State” by Arek Sarkissian for Naples Daily News

Illinois: “Byrd-Bennett Sobs While Trying to Explain Corruption, Gets 4 1/2 Years in Prison” by Jason Meisner and Juan Perez Jr. for Chicago Tribune

Elections

“Guns and Religion: How American conservatives grew closer to Putin’s Russia” by Rosalind Helderman and Tom Hamburger for Washington Post

Legislative Issues

North Carolina: “North Carolina Judges Back Governor Over Election Changes” by Emery Dalesio (Associated Press) for U.S. News & World Report

Among the amendments in the 2017 Consolidated Appropriations Act expected to pass into law this week are two provisions affecting campaign financing.

House Resolution 244 explicitly prohibits the Internal Revenue Service from making new rules concerning the political speech or activity of 501(c)(4) organizations. The legislation also prohibits the Securities and Exchange Commission from finalizing, issuing, or implementing any rule, regulation, or order regarding the disclosure of political contributions, contributions to tax exempt organizations, or dues paid to trade associations.

On May 2, the Senate Committee on Rules will meet on address these and other amendments in the bill.

Q. Can I use my company’s federal PAC to make contributions to candidates for state office?

A. With the exception of Massachusetts, contributions from a federal PAC to non-federal state candidates are permissible.  However, the challenging aspect of making these types of contributions is that every jurisdiction has different rules regarding how to register and report such contributions.  To make this a little easier to digest, we have broken down the states into five categories.  Please note:  regardless of the registration and reporting process, in all jurisdictions the federal PAC is subject to the contribution limits according to the law of that jurisdiction…

We have not listed PAC rules for all the states, only examples of some states.
If you have a question on a state not listed here, please contact us directly
at 1-330-761-9960.

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Kayleigh Crumb has been an excellent choice as the first student to receive the recently endowed ‘Elizabeth Z. Bartz Scholarship for Howland Tigers.’ This scholarship is given to a graduate of Howland High School who is entering Kent State University at Trumbull Campus as a freshman.

Kayleigh received the 2016 scholarship award last fall, after graduating from high school, and enrolling at the KSU Trumbull campus. After her first semester at the university, she was named to the Dean’s List by achieving a 4.0 grade-point average. She also received a KSU Trumbull Freshman Scholarship for her efforts.

Elizabeth Z. Bartz, who provided $30,000 to Kent State University at Trumbull to endow the ongoing scholarship program, said, “I am delighted that Kayleigh was the first student from Howland High School to receive this scholarship. She has already done so well and has a bright future ahead of her. I endowed this scholarship last year in honor of my 40-year graduation anniversary from Howland High School because I wanted to give back and help graduating seniors from Howland High School attend the local area KSU Trumbull Campus, just like I did. Meeting Kayleigh has showed me I made the right decision to help promising students pay their early college costs.”

Kayleigh added, “I want to be a news anchor or work in the broadcasting field with my journalism major. Even while at Howland High School, I was able to take classes offered by Kent State and was able to obtain nine college course credits. This scholarship, generously provided by Ms. Bartz, helped me a lot so I could attend Kent State University at Trumbull, where I am getting the same education as the main campus in an affordable, safe and convenient location.”

Starting in the fall of 2017, Kayleigh will attend the main campus of Kent State University in Kent, Ohio, for her second year of classes. She is also being inducted into the National Society of Leadership and Success later this month, the nation’s largest leadership honor society.

For upcoming seniors at Howland High School who will graduate and then attend Kent State University at Trumbull this Fall, they can learn more about the ‘Elizabeth Z. Bartz Scholarship for Howland Tigers’ and apply starting May 1, 2017, at this KSU website: http://www.kent.edu/trumbull/campus-scholarships

Elizabeth, who graduated from Kent State University having earned a Bachelor of Arts Degree in Journalism in 1980 and a Master of Arts Degree in Political Science in 1982, credits the KSU Trumbull Campus and its professors as the place and people who supported her at the beginning of her university journey. Her endowment now ensures a scholarship is awarded each year to a Howland High School graduate, in a program managed by KSU.

We’ve got a busy month of May planned. If you are attending any of these events, please say hello!

May 1   Book Forum – The Soul of the First Amendment, Washington, DC

May 2   Ohio Chamber of Commerce Annual Meeting and Reception, Columbus, Ohio

May 3   Free Website Tour of State and Federal Communications Online Publications

May 4   Leadership in the 21st Century Program Alumni Event, Washington, DC

May 4   Public Affairs Council Cinco de Mayo Happy Hour, Washington, DC

May 9   WGR Toastmasters, Washington, DC

May 11   Montgomery County Council – African Affairs Advisory Group Meeting, Silver Spring, Maryland

May 12   Advocacy Leaders Network: Advocacy on the Cheap: Changing the World on Any Budget, Washington, DC

May 18   17th Annual Omnikal Business Summit, New York, NY

May 23   WGR Toastmasters, Washington, DC

May 24   2017 Advocacy Leaders Network Spring Happy Hour, Washington, DC

Lobbying

“Lewandowski’s Firm Appears to Offer Trump Meetings” by Kenneth Vogel and Josh Dawsey for Politico

Campaign Finance

California: “Rep. Rohrabacher’s Ex-Campaign Treasurer Sentenced to Year in Jail for Embezzlement” by Hannah Fry for Los Angeles Times

Colorado: “Judge Says Ex-Congressman Bob Beauprez’s Group Must Pay $17,000 in Campaign Finance Fines” by Corey Hutchins for Colorado Independent

Colorado: “Campaign Finance Reform Measures Die in Colorado Legislature” by Peter Marcus for ColoradoPolitics.com

Maine: “New Info About Maine Casino Campaign’s Financing Triggers Ethics Concerns” by Mitchell Shepherd for Bangor Daily News

New Mexico: “City Contractors Give to ABQ Mayoral Candidates” by Sandra Fish for New Mexico In Depth

New York: “Proposal Would Boost Public Campaign Matching Funds” by Samar Khurshid for Gotham Gazette

Oklahoma: “Oklahoma State Sen. Kyle Loveless Resigns Amid Criminal Investigation” by Nolan Clay and Dale Denwalt for The Oklahoman

Ethics

“Bribe Cases, a Secret Jared Kushner Partner and Potential Conflicts” by Jesse Drucker for New York Times

“Pentagon Inquiry Seeks to Learn if Flynn Hid Foreign Payment” by Emmarie Huetteman and Matthew Rosenberg for New York Times

Rhode Island: “Restaurant Owner to Serve Year in Prison for Bribing Former R.I. House Speaker” by Katie Mulvaney for Providence Journal

South Dakota: “South Dakota Ethics Bill Lost Teeth on Its Way to Becoming Law” by Dana Ferguson for Sioux Falls Argus Leader

Texas: “How the Federal Case Against John Wiley Price Fell Apart” by Jennifer Emily, Gromer Jeffers Jr., and Kevin Krause for Dallas News

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

Effective July 30, 2017, Arkansas constitutional officers are prohibited from soliciting or accepting loans from lobbyists.

Senate Bill 7, now known as Act 1108, amends the definition of gift to include any advance or loan. The bill excludes an advance or loan made in the ordinary course of business by a financial institution or business regularly extending credit.

Bills signed during the regular session are effective 90 days after the final, official day of session, unless otherwise specified. The 91^st General Assembly is set to adjourn sine die on May 1, 2017.

National:

Can Elections Like Georgia’s Help Predict Future Races?
New York Times – Jonah Engel Bromwich | Published: 4/19/2017

The recent congressional election in Georgia was billed as having potential national implications, as an early test of whether anti-President Trump energy could fuel Democratic victory in a traditionally Republican district. It seems likely the same will be said for scattered upcoming special elections in other states. But political scientists and pollsters who analyze races for a living say so-called bellwether races are tricky to evaluate, if they even exist at all.

Some Public Pensions Help Trump, Report Shows
U.S. News & World Report – Julia Harte (Reuters) | Published: 4/26/2017

Public pension funds in at least seven U.S. states have invested millions of dollars in an investment fund that owns a New York hotel and pays one of President Donald Trump’s companies to run it. That arrangement could put Trump at risk of violating an obscure constitutional clause. The Trump SoHo Hotel and Condominium is owned by a Los Angeles investment group, the CIM Group, through one of its real estate funds. The possible problem for Trump lies in the fact that state- and city-run pension funds have invested in the CIM fund and pay it a few million dollars in quarterly fees to manage their investments in its portfolio. In return for marketing and managing the hotel-condo, CIM pays Trump International Hotels Management a percentage of the SoHo’s operating revenues. The Constitution bars the president from receiving additional payments beyond his salary from state governments.

Federal:

Flynn Probably Broke the Law by Failing to Disclose Foreign Payments, House Oversight Leaders Say
Washington Post – Karoun Demirjian | Published: 4/25/2017

Michael Flynn, President Trump’s first national security adviser, may have violated federal law by not fully disclosing his business dealings with Russia when seeking a security clearance to work in the administration, the top oversight lawmakers from both parties in the U.S. House sad. Rep. Jason Chaffetz, chairperson of the House oversight committee, said Flynn also appeared to have inappropriately accepted the funds without permission. The declaration came after Chaffetz and other members of the committee reviewed classified documents related to Flynn, including the form he filled out in January 2016 to renew his security clearance.

Sessions Vows to Enforce an Anti-Bribery Law Trump Ridiculed
New York Times – Charlie Savage | Published: 4/24/2017

Attorney General Jeff Sessions affirmed the U.S. Justice Department’s commitment to prosecutions under the Foreign Corrupt Practices Act (FCPA), which bars corporations from bribing foreign officials to gain a business advantage. Paul Pelletier, a former deputy chief of the fraud section of the Justice Department’s Criminal Division, said Sessions’ remarks were significant because of speculation about whether the administration would ease enforcement of the act. President Trump once called it a “horrible law.” The act was little invoked or discussed for years. But around 2005, the fraud section began enforcing it much more vigorously. It has rapidly become a major factor in business decisions about overseas operations, generating big fees for law firms and large fines for the government.

Slow Pace of Trump Nominations Leaves Cabinet Agencies ‘Stuck’ in Staffing Limbo
Washington Post – Lisa Rein | Published: 4/25/2017

President Trump’s Cabinet secretaries are growing exasperated at how slowly the White House is moving to fill hundreds of top-tier posts, warning the vacancies are hobbling efforts to oversee agency operations and promote the president’s agenda. The Senate has confirmed 26 of Trump’s picks for his Cabinet and other top posts. But for 530 other vacant senior-level jobs requiring confirmation, the president has advanced just 37 nominees. The nomination process has been slowed by the unusual degree of scrutiny the White House is giving job candidates. Prospective nominees for senior posts and even some of the more junior ones must win approval from competing camps inside the White House.

Trump Inauguration Admits Errors, Vows to Correct Numerous Faulty Donor Records
HuffPost – Christina Wilkie | Published: 4/25/2017

President Trump’s inaugural committee acknowledged it made errors in a list of donors submitted to the FEC. That admission followed an unusual crowdsourced reporting project, in which HuffPost reporter Christina Wilkie asked the public to examine more than 1,500 listings of individual donors and their addresses. That effort, along with others from other news organizations, seemed to turn up more than 300 examples where the data seemed not to match reality. The scores of mistakes contained in the FEC filing can largely be traced to a fundraising and ticketing system the Republican Party introduced this year, which provided special online access codes to Trump supporters.

From the States and Municipalities:

Alabama – U.S. Top Court Preserves Alabama Campaign Finance Curbs
Reuters – Andrew Chung | Published: 4/24/2017

The U.S. Supreme Court declined to hear a challenge to Alabama’s ban on the transfer of campaign contributions between PACs. The decision left in place an appeals court ruling that the 2010 law does not unconstitutionally restrict political speech. To comply with the law, the Alabama Democratic Conference established separate banks accounts for candidate contributions and its other expenditures. It then proceeded to sue to the state and the Alabama attorney general, arguing in the law violated its First and Fourteenth Amendment rights.

California – Blacklist of Border-Wall Contractors Advanced in California Senate
Courthouse News Service – Nick Cahill | Published: 4/25/2017

Contractors would have to choose between building a border wall between the U.S. and Mexico and doing business with California under a bill that advanced in the Senate. Senate Bill 30 would blacklist companies who help to build the controversial wall that President Trump has promised to construct. In addition, Assembly Bill 946 would force the state to drop its pension investments in any companies involved in the project. Lobbyists for contractors spoke out against the bill at a hearing, saying it would create a slippery slope. “What next unpopular project would we blacklist for contractors”” asked Todd Bloomstine of the Southern California Contractors Association.

Missouri – Fewer Missouri Lawmakers Are Bunking with Lobbyists
St. Louis Post-Dispatch – Kurt Erickson | Published: 4/21/2017

Four members of the Missouri Legislature and one former deputy attorney general have rented sleeping space from lobbyists this year, compared with eight last year. Staying in a room in a lobbyist’s home is an alternative to staying in a hotel near the Capitol, where lawmakers typically work from Monday afternoon to Thursday afternoon before heading back to their home districts. Some legislators buy condominiums, homes, or duplexes during their stints in office. Disclosure reports do not offer details on how much lawmakers are paying in rent.

North Carolina – Tar Heel Republicans Override Gov. Cooper Veto in Latest Partisan Clash
Raleigh News & Observer; Associated Press –   | Published: 4/25/2017

The Republican majority in the North Carolina General Assembly voted to override Gov. Roy Cooper’s veto of plans to combine elections and ethics oversight under one state board. Under Senate Bill 68, the State Board of Elections and the State Ethics Commission would be merged into an eight-person board evenly divided between Democrats and Republicans. County elections boards also would be split evenly, going against the tradition of giving a one-person majority on the state and county boards to the party of the governor. Lawmakers voted in a December special session to combine the two state boards, but a three-judge panel declared that legislation unconstitutional, ruling lawmakers had overstepped their authority. Lawmakers tweaked Senate Bill 68 to address those concerns.

Pennsylvania – Phila. Board of Ethics Fines Teamsters Local 830
Philadelphia Tribune – Layla Jones | Published: 4/22/2017

The Philadelphia Board of Ethics cited Teamsters union Local 830 for failing to follow the city’s lobbying disclosure law. During the battle in city council over Mayor Jim Kenney’s proposed sweetened-beverage tax, the Teamsters paid Frank Keel to write opinion pieces opposing the levy. The ethics board said that amounts to lobbying. The law requires lobbyists to register and their clients to file reports disclosing what they have spent to influence city policy if it is more than $2,500 in one quarter. The board says the union paid Keel $5,000 for his services. The union will pay a $2,000 penalty. Keel, who was told to register as a lobbyist, was spared a fine.

Rhode Island – Panel: Probable cause that R.I. Supreme Court justice Flaherty violated ethics code
Providence Journal – Katie Mulvaney | Published: 4/25/2017

The Rhode Island Ethics Commission voted to find probable cause that state Supreme Court Justice Francis Flaherty violated the ethics code by failing to report his service on the board of a Catholic lawyers’ group. Helen Hyde filed a complaint faulting Flaherty for not indicating on his financial disclosure statements from 2010 to 2015 that he served as president of the St. Thomas More Society of Rhode Island. Hyde alleges Flaherty held that role while presiding over her appeal before the state Supreme Court. She alleged that a Roman Catholic priest sexually abused her more than four decades ago and sought to recover damages from the Roman Catholic Bishop of Providence. Flaherty wrote the decision denying Hyde and Jeffrey Thomas damages.

Virginia – Virginia Makes Key Adjustments to Law Governing Gifts to Officials, Adds New Lobbyist Gift Notification
National Law Review – Andrew Garrahan | Published: 4/26/2017

Virginia Gov. Terry McAuliffe signed House Bill 1854, which makes changes to the state’s lobbyist and gift laws. It eliminates a controversial exception to the $100 limit on lobbyist gifts to legislators and officials, adds a key new exception to that law, and includes an additional gift notification requirement for lobbyists, among other provisions.

Washington – ‘What’s Upstream?’ Ad Campaign Funded by EPA Did Not Break Federal Lobbying Rules, Investigation Finds
Seattle Times – Joseph O’Sullivan | Published: 4/24/2017

A controversial clean-water campaign funded by the U.S. Environmental Protection Agency (EPA) did not violate federal lobbying rules, an audit by the agency’s inspector general determined. The What’s Upstream? campaign included billboards and ads to raise awareness of water issues surrounding agricultural pollution in the Puget Sound region. Some Republican lawmakers accused What’s Upstream?, which included a form letter on its website for people to contact their legislators, of being an “anti-farmer campaign.”  A letter signed by 145 members of Congress cited federal law that prohibits the EPA from using money for propaganda or advocacy without congressional approval.

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 April 26, Gov. Jim Justice called for a special session set to convene May 4 to approve a budget plan. The state currently faces a $500 million shortfall in the 2018 fiscal year budget and there is little consensus among lawmakers on how to address the deficit.

The fiscal year begins July 1, and a budget bill needs passed prior to that date or the state government will face a shut down.

Gov. Terry McAuliffe approved changes to Virginia’s gift rules this week, marking the fourth consecutive year lawmakers have adjusted ethics provisions. Among other changes, House Bill 1854, and identical Senate Bill 1312, requires lobbyists to send legislators and executive officials a summary of gifts provided from January 1 through adjournment sine die of the regular session of the General Assembly. The summary must be provided within three weeks of adjournment and does not include the reconvened session.

The bill also eliminates the “common interest” exception to the $100 gift limit on lobbyists for widely attended events. This exception was used to justify luxury suite tickets to football games. An exception is added, however, for attendance at a reception where hors d’oeuvres and beverages are provided and can be consumed while standing or walking.

These changes are effective July 1, 2017, except the gift notification requirement is effective immediately.

The Iowa General Assembly adjourned sine die on April 22, 2017.  Legislators approved a state budget of $7.293 billion, effective for the fiscal year beginning July 1, 2018.

Gov. Terry Branstad must sign or veto any bills received in the last three calendar days of the legislative session within 30 calendar days.

The 2017 Indiana General Assembly adjourned sine die on April 22, 2017.

Gov. Eric Holcomb has until April 29 to take action on any bills presented to him. In Indiana, if no action is taken within seven days of presentment, bills automatically become law.

Photo of the Indiana Statehouse by HstryQT on Wikimedia Commons.

Gov. Phil Bryant announced a special session of the state legislature will begin on June 5, 2017. Lawmakers will continue work on the budget for fiscal year 2018 left unfinished at the end of the regular session.

Gov. Bryant, who has sole authority to call special sessions and set the agenda, will announce other issues, if any, the session will cover closer to June 5.