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

April 7   PACS, Politics, & Grassroots Conference, Washington, DC

April 11   WGR Toastmasters, Washington, DC

April 11  WGR Leadership Program Final Session, Washington, DC

April 13   Montgomery County Council – African American Affairs Advisory Group Meeting, Silver Spring, Maryland

April 21   You-Too Social Media Conference, Kent, Ohio

April 25-26   Public Affairs Council Spring Executive Meeting, Washington, DC

April 25   Public Affairs Council Annual Member Dinner, Washington, DC

April 25   WGR Toastmasters, Washington, DC

April 26-27   Campaign Tech East Conference 2017, Washington, DC

Campaign Finance

Arizona – “Arizona Secretary of State’s Website to Track Political Spending Triples in Cost” Mary Jo Pitzl for Arizona Republic

Michigan – “‘Shadowy’ 527 Political Groups Would Have to Report Finances Under New Bill” by Emily Lawler for MLive.com

New York – “De Blasio Stymied in Attempt to Pay Legal Fees with Donations” by J. David Goodman for New York Times

Ethics

“Ivanka Trump, Shifting Plans, Will Become a Federal Employee” by Rachel Abrams and Maggie Haberman for New York Times

Florida – “Bribery Attempts in Miami Beach Drop, But They Still Happen, Ethics Survey Shows” by Joey Flechas Miami Herald

Pennsylvania – “Have Bribery, Fraud and Abuse of Power Become Synonymous with ‘Pennsylvania’?” by Jan Murphy for PennLive.com

South Carolina – “South Carolina Ports Agency Suspends Payments to Consultant Richard Quinn During Statehouse Corruption Probe” by David Wren for Charleston Post and Courier

Virginia – “Feds Looking into Any ODU Payments, Gifts to Ex-Norfolk Sheriff Bob McCabe” by Scott Daugherty for The Virginian-Pilot

Washington – “Head of Public Disclosure Commission Stepping Down in May” by the Associated Press for U.S. News and World Report

The Kentucky General Assembly adjourned the 2017 regular session sine die on March 30, 2017. Working late into the evening, lawmakers approved several bills to send to Gov. Matt Bevin’s desk.

The Republican-controlled legislature passed right-to-work and anti-abortion bills, as well as a repeal of a prevailing wage law.

Stronger controls over prescription pain medication and penalties for trafficking synthetic opioids were also approved.

The next legislative session begins in January, 2018.

The Georgia Legislature adjourned the 2017 regular session sine die yesterday, March 30, 2017.

In the final days of the session, lawmakers tackled issues such as a campus gun bill, tax credits, and medical marijuana.

Georgia is one of 17 states prohibiting guns on university campuses and Gov. Nathan Deal has shown his opposition to the issue, particularly by vetoing a similar bill last year.

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

Federal:

2 White House Officials Helped Give Nunes Intelligence Reports
New York Times – Matthew Rosenberg, Maggie Haberman, and Adam Goldman | Published: 3/30/2017

Two White House official were involved in giving House Intelligence Committee Chairperson Devin Nunes access to intelligence reports that seemed to show that President Donald Trump and his associates were incidentally included in surveillance efforts. The New York Times reported that multiple sources said Ezra Cohen-Warrick, senior director for intelligence at the National Security Council, and Michael Ellis, a lawyer who used to work for Nunes and is now in the White House Counsel’s Office, helped Nunes get the information. American officials said the reports consisted primarily of ambassadors and other foreign officials talking about how they were trying to develop contacts within Trump’s family and inner circle in advance of his inauguration.

A Former Trump Administration Appointee Who Left Without Signing Ethics Pledge Is Now a Lobbyist
Washington Post – Matea Gold | Published: 3/29/2017

Robert Wasinger, a former campaign official and transition team member for Donald Trump, served briefly as White House liaison to the State Department before joining McGuireWoods Consulting as senior vice president of its federal public affairs group in February. He registered recently as a lobbyist for Verizon and Inovio Pharmaceuticals. Ethics experts said it is troubling that there are now two examples of early Trump appointees who left without committing to the lobbying ban.

From the States and Municipalities:

Arizona – Arizona Firefighters Have Grip on Financial Power in Local Elections – But Should They?
Arizona Republic – Jessica Boehm | Published: 3/28/2017

In 2015 and 2016, firefighter union PACs across Arizona donated hundreds and sometimes thousands of dollars to mayoral or city council candidates they often had never met. In total, 31 firefighter union PACs donated more than $250,000 to 59 city council and mayoral candidates in Arizona. Firefighter leaders say their campaign donations are noble efforts to ensure their communities are run by politicians who will do the best job for the community. Others question the power and legality of city employees so actively involved in electing council members, the people who will decide matters such as their wages and department budgets.

California – PG&E to Pay $86.5 Million for Backdoor Lobbying of Regulators
KNSD – Jaxon Van Derbeken | Published: 3/28/2017

Pacific Gas & Electric (PG&E) will pay $86.5 million in a settlement over corruption allegations that followed a fatal pipeline explosion in San Bruno. The announcement comes in the wake of the disclosure of a series of improper communications and back-channel deals linked to the disaster. The utility’s inappropriate actions also affected gas-pipeline operations in San Carlos. Under pressure, PG&E agreed to release 65,000 emails sent between 2010 and 2014. In them, critics found proof of an overly cozy relationship between  top officials at PG&E and regulators both before and after the explosion that killed eight people.

Connecticut – Ted Kennedy Jr.’s 2014 Campaign, Still Under Scrutiny, Shows Election-Reform Troubles
Hartford Courant – Edmund Mahoney and Jon Lender | Published: 3/29/2017

Ted Kennedy, Jr. in his 2014 campaign for the Connecticut Senate signed a contract promising to limit campaign spending to a grant of about $95,000 in taxpayer money he received under the state’s Citizen Election Program, the landmark campaign finance reform its supporters claim is a model for keeping special interest money out of elections. But records show Kennedy and the Democratic Party spent almost four times that much on his campaign, using a loophole opened by an amendment pushed through the Democrat-controlled state Legislature the year before. The Democratic State Central Committee paid about $288,000 to cover “organizational expenditures” on the Kennedy campaign – after family, friends, and business associates of Kennedy donated about $300,000 to the committee.

Florida – Florida Paid Law Firm for Meeting with House Speaker
U.S. News and World Report – Gary Fineout (Associated Press) | Published: 3/27/2017

Blurring the lines between his role as an up-and-coming legislator and his job as an attorney, the law firm of House Speaker Richard Corcoran once charged the state for a meeting with Corcoran in his capacity as a lawmaker. Billing records show the firm of Broad and Cassel charged the state’s economic development agency ahead of a meeting between its affiliate, the state Division of Bond Finance, and Corcoran – putting the meeting in the crosshairs of a new review by Gov. Rick Scott of potential conflicts-of-interest. Corcoran said he was unaware his firm asked to be paid to prepare for the meeting with him. He said he and all lawmakers are routinely asked by friends and colleagues to meet with people to discuss issues and problems they have with state government.

Illinois – Campaign Donation Limits Lifted in Illinois Governor’s Race
Northwest Herald – Sophia Tareen (Associated Press) | Published: 3/27/2017

Chris Kennedy’s roughly $250,000 donation to his own campaign has lifted spending caps in what is expected to be another big money race for Illinois governor. Kennedy’s contribution follows Gov. Bruce Rauner’s record-setting $50 million donation to his own re-election bid last year. But Rauner’s contribution did not remove the limits because of how early the donation was made. When a self-funded statewide candidate or family member gives more than $250,000 in the 12 months before an election, the caps are lifted for all candidates. Illinois’ gubernatorial primary is March 20, 2018.

Illinois – Court Strikes Down Ban on Campaign Contributions from Medical Marijuana Licensees
Illinois Policy – Jacob Huebert | Published: 3/24/2017

An Illinois law banning state marijuana growers and sellers from making campaign contributions has been struck down as unconstitutional. U.S. District Court Judge John Lee ruled the legislation, passed in 2013, the same year the General Assembly voted to legalize medical marijuana, violates free speech rights guaranteed by the First Amendment. Lee said the state had provided no justification for banning contributions from the medical cannabis industry while not banning donations from any other regulated industries.

Iowa – House Ethics Committee Admonishes Americans for Prosperity Lobbyist
Des Moines Register – Brianne Pfannenstiel | Published: 3/22/2017

The Iowa House Ethics Committee voted to issue a letter admonishing Americans for Prosperity lobbyist Drew Klein for failing to register his position on a controversial bill scaling back collective bargaining rights. State law requires lobbyists to register their support or opposition to legislation moving through the Capitol to create transparency. The committee said Klein did not officially register his support of House File 291 until after it had already been under discussion. That prompted a complaint from the Iowa Federation of Labor.

Missouri – Goodbye to All That? Missouri Lawmakers Dragging Feet on Lobbyist-Gift Ban
St. Louis Public Radio – Marshall Griffin | Published: 3/24/2017

There has been no movement for nearly two months on bills that would ban gifts from lobbyists to Missouri lawmakers. The House passed House Bill 60 on January 17, and a Senate committee conducted a joint hearing on it and on the Senate version, Senate Bill 305. With the legislative session scheduled to end on May 12, it remains to be seen whether what was once a strong priority for Republicans will pass at all.

New Jersey – 2 Christie Allies Are Sentenced in George Washington Bridge Scandal
New York Times – Nick Corasaniti | Published: 3/29/2017

Two former aides to New Jersey Gov. Chris Christie were sentenced to prison for their role in a political revenge plot involving traffic jams at the George Washington Bridge, a scandal that sank Christie’s presidential aspirations. Bill Baroni, Christie’s appointee to the Port Authority of New York and New Jersey, was sentenced to two years, and Bridget Kelly, Christie’s former deputy chief of staff, received 18 months. The government’s star witness, David Wildstein, testified he and the co-defendants sought to retaliate against a Democratic mayor for not endorsing Christie’s re-election. Christie was not charged with any wrongdoing. But his version of events – that he was not aware that anyone in his office was involved until months after the fact – was contradicted by testimony from multiple people.

New Mexico – What Financial Disclosure Forms Don’t Require Reveal as Much as What They Do
New Mexico In Depth – Sandra Fish | Published: 3/23/2017

New Mexico In Depth created a database of the information in financial disclosures filed by lawmakers this year. The disclosures do not just reveal potential conflicts for lawmakers. In fact, sometimes the forms do not reveal much at all. The watchdog group Ethics Watch has noted that reporting requirements are unclear and lawmakers interpret them in a variety of ways. New Mexico is the only state in the nation that does not pay lawmakers. So, they typically have outside jobs that can pose conflicts-of-interest with their work at the Capitol.

Oregon – Lax Conflicts of Interest Rules Let Oregon Lawmakers Keep Quiet About Their Ties
Portland Oregonian – Gordon Friedman | Published: 3/26/2017

Oregon law allows officials to make decisions financially benefitting a class of people equally, even if the state lawmaker is a member of that group. That means it is perfectly legal for Oregon lawmakers to sponsor and vote for bills that benefit people in the occupation they hold or the type of companies their families work for. Regardless of potential conflicts, lawmakers are not allowed under Senate and House rules to recuse themselves from voting. They are required only to announce prior to voting that a potential conflict exists. Failing to disclose a conflict can result in censure or other discipline. But the onus is also on lawmakers to self-report.

Pennsylvania – Judge Mid-Trial Dismisses All Charges in Pennsylvania Pay-to-Play Case
Pittsburgh Post-Gazette – Angela Couloumbis and Craig McCoy (Philadelphia Inquirer) | Published: 3/27/2017

U.S. District Court Judge John Jones III has thrown out a “pay-to-play” case against an investment adviser accused of bribing Pennsylvania’s former treasurer to get state business. Jones said prosecutors had not proven that favors were traded in exchange for campaign contributions from defendant Richard Ireland. Prosecutors had relied on testimony from former state Treasurer Rob McCord, who pleaded guilty two years ago to extortion charges after being caught strong-arming contributions from campaign donors, including some who had state contracts. But during testimony, McCord provided such lukewarm support for the government’s case that prosecutors grew increasingly short with him, almost treating him as a hostile witness.

Texas – Liquor Regulators Partying on Taxpayers’ Tab
Texas Tribune – Jay Root | Published: 3/24/2017

The Texas Alcoholic Beverage Commission (TABC) has spent at least $85,000 on out-of-state travel since the 2011 fiscal year, much of it on liquor industry conferences. Almost $17,000 has been paid to the National Conference of State Liquor Administrators (NCSLA), an industry trade group that brings liquor interests and government regulators together, for registration and membership fees over the same period. TABC Director Sherry Cook says the NCSLA’s meetings provide training and networking opportunities that help keep her agency abreast of the complicated regulatory structure in various states. Critics say they are junkets that waste precious tax dollars while raising troubling questions about the cozy relationship between the government regulators and powerful corporate interests.

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.

The Mississippi Legislature adjourned the 2017 regular session sine die on March 29, 2017, days before its anticipated adjournment date of April 2.

Gov. Phil Bryant is, however, expected to call a special session before July 1, the date a new budget is needed for the next fiscal year.

The House and Senate reached a stalemate over infrastructure funding and an internet sales tax. Gov. Bryant said he would call the special session when lawmakers reach an agreement.

The Idaho Legislature adjourned the 2017 regular session sine die on March 29, 2017.

Major issues of this year’s session included proposed income tax cuts and funding for public schools.

A handful of legislators will work through the interim on updating the state’s public school funding formula. Many argue it is outdated and does not meet the needs of a modern education.

The Billings City Council unanimously voted this week to repeal the city’s ethics ordinance and dismiss the Board of Ethics. In place of the Board of Ethics, the Yellowstone County Attorney will oversee the city’s ethics complaints.

The city says it will use already existing state ethics standards and enforcement procedures currently being used in Helena and Great Falls.

The current and now nonoperational Ethics Board asked to remain in place, believing they are better trained to handle ethics complaints and are more available to the city’s population to report ethics violations.

Under the newly repealed ethics ordinance, the city attorney was not able to review ethics complaints against city council members, so a separate private attorney was hired, something City Council was aiming to change.

The new ethics provisions are set to become effective at the end of April.

Campaign Finance

“Ex-Congressman Stockman Indicted in Texas” by Josh Gerstein for Politico

Connecticut: “Ted Kennedy Jr.’s 2014 Campaign, Still Under Scrutiny, Shows Election-Reform Troubles” by Edmund Mahony and Jon Lender for Hartford Courant

Ethics

“Schock Staffer Was FBI Informant, Court Filings Reveal” by Megan Wilson for The Hill

Alabama: “Vote on Whether to Impeach Alabama Governor May Come Quickly” by Kim Chandler (Associated Press) for Myrtle Beach Sun News

Maine: “Memo: Dozens of Maine lawmakers may have failed to disclose changes in income” by Steve Mistler for Maine Public

New Jersey: “2 Christie Allies Are Sentenced in George Washington Bridge Scandal” by Nick Corasaniti for New York Times

New Jersey: “N.J. Election Watchdog Meets after Year of Paralysis” by Nicholas Pugliese for Bergen Record

Elections

“A Former Trump Administration Appointee Who Left Without Signing Ethics Pledge Is Now a Lobbyist” by Matea Gold for Washington Post

Lobbying

California: “PG&E to Pay $86.5 Million for Backdoor Lobbying of Regulators” by Jaxon Van Derbeken for KNSD

State and Federal Communications is excited to be at the 2017 SGAC National Summit in New Orleans, Louisiana.

President and CEO Elizabeth Bartz , Director of Operations Amber Fish Linke, and Client Specialist Nola Werren are attending this year’s event, where attendees will discuss how “Managing State Government Affairs is BIG but NEVER EASY”

You can see the agenda here, and follow the conversations on Twitter with the hashtag #NSSGAC.

The executive director of Washington’s Public Disclosure Commission, Evelyn Fielding Lopez, announced her plan to leave her position in May.

Lopez was appointed in October 2015 and faced calls for her resignation from Republican leaders in 2016 alleging bias in favor of Democrats.

The Commission appointed Barbara “BG” Sandahl as the agency’s new assistant director.

The appointment of the next executive director is expected to be made soon.

Federal Regulation of Lobbying Act

One of the first formal federal regulations of lobbying in the United States was the Federal Regulation of Lobbying Act that created a registration and financial disclosure system for lobbyists in 1946. The Federal Regulation of Lobbying Act required lobbyists, anyone whose “principal purpose” was influencing the passage or defeat of a piece of legislation, to register with the Clerk of the House and Secretary of the Senate. The act also required quarterly financial reports to be filed as well. The act was considered ineffective because of poor drafting.

The act was diminished in 1954 when it was challenged in the U.S. Supreme Court case United States v. Harriss. The Court’s ruling narrowed the Act to only apply to “paid lobbyists” that “directly communicate” with Congress on “pending legislation.”

The United States v. Harriss ruling discounted the power and need for disclosure of those who lobby on general issues rather than a specific piece of legislation by not requiring them to disclose their efforts. The Supreme Court ruling also only required disclosure of in person meetings.

Lobbying Disclosure Act of 1995

Another effort was made to regulate lobbying with the Lobbying Disclosure Act of 1995, following a scandal surrounding legislators lobbied by the Wendtel Corporation. The company failed to disclose its lobbying efforts and was bribing policy makers to win government contracts. This scandal motivated Congress to repeal the 1946 act, that had been basically untouched since its dismantling in the Supreme Court and original poor drafting.

In an attempt to make compliance of the law clearer, the new statute redefined lobbying and other related terms.  A lobbyist was now considered anyone who is paid by another to make ‘‘lobbying contacts,’’ other than an individual whose ‘‘lobbying activities’’ constitute less than twenty percent of the time spent on providing services to a particular client over a six-month period. If a paid representative of an organization spent less than $22,500 on lobbying within the six months of the reporting period, then the employee did not need to register as a lobbyist under the Lobbying Disclosure Act. This new, more intense regulation required a lobbyist to register with the Secretary of the Senate and the Clerk of the House of Representatives within 45 days of their first lobbying contact on behalf of an organization. The 1995 lobbying regulation was much more stringent and clear than the 1946 act that had left a lot of loopholes.

Honest Leadership and Open Government Act of 2007

The Lobbying Disclosure Act was modified by the Honest Leadership and Open Government Act on September 14, 2007. This act furthered public disclosure requirements for lobbyists and placed more restrictions on the gifts members of Congress and staff members could accept. This law also extended the revolving door period for senior staffers of a member from lobbying them for two years. The 1995 act had a one-year restriction.

Sources:

http://www.opensecrets.org/resources/learn/lobbying_timeline.php

https://definitions.uslegal.com/f/federal-regulation-of-lobbying-act-of-1946/

https://ballotpedia.org/Lobbying_Disclosure_Act_of_1995

https://www.govtrack.us/congress/bills/110/s1/summary

https://www.govtrack.us/congress/bills/110/s1/summary#libraryofcongress

Washington D.C.-based Gabrielle Woodard is a student from Kent State University (KSU). She is writing articles looking at the history of lobbying and political contribution, the emergence of the compliance laws and regulations governing these activities, and other interesting topics. Look for these articles to appear every few weeks. We look forward to her research and insightful writing.

Gabrielle is a senior public relations major at KSU with a minor in political science. She served as president of Kent State’s chapter of the Public Relations Student Society of America during 2015-2016. Gabrielle spent the spring of 2015 participating in the Washington Program in National Issues and interned in the Office of Legislative Affairs within the Federal Communications Commission. She then spent her last two summers in Baltimore as a communications intern for Northrop Grumman, an international defense contractor. Gabrielle is spending this semester in Washington, D.C. and pursuing a career in government relations.

Campaign Finance

“Court Allows Challenge to FEC Rule Shielding Nonprofit Donors” by Kenneth Doyle for Bloomberg BNA

Arizona: “Arizona Firefighters Have Grip on Financial Power in Local Elections – But Should They?” by Jessica Boehm for Arizona Republic

Connecticut: “Democrats Back Ban on ‘Dark Money’ in State Campaigns” by Mark Pazniokas for Connecticut Mirror

Illinois: “Campaign Donation Limits Lifted in Illinois Governor’s Race” by Sophia Tareen (Associated Press) for Northwest Herald

Maine: “Under Proposal, Some Campaign Finances Could Be Hidden Until Weeks After Election” by Steve Mistler for Maine Public

West Virginia: “WV Senate Passes Campaign Finance Overhaul” by Jake Zuckerman for Charleston Gazette

Ethics

“Mar-a-Lago Can’t Release Visitor Logs – Because It Doesn’t Keep Them” by Darren Samuelsohn for Politico

Florida: “Florida Paid Law Firm for Meeting with House Speaker” by Gary Fineout (Associated Press) for U.S. News & World Report

Michigan: “Sources: FBI, State Police probe Johnson on payroll” by Jonathan Oosting and George Hunter for Detroit News

Montana: “City Council Repeals Ethics Ordinances, Disbands Board in Favor of State Statutes” by Mike Ferguson for Billings Gazette