Here is our March calendar. If you are attending any of these events, please say hello!

March 6-9   PAC National PAC Conference, Miami Beach, Florida

March 7   NCSL Foundation Lunch, Washington DC

March 7   Women in Government Relations Leadership Program Session #3, Washington, DC

March 9   Montgomery County Council – African American Affairs Advisory Group Meeting, Silver Spring, Maryland

March 12-14   NASPO Exchange – How to Market to State Governments, St. Louis, Missouri

March 14   WGR Toastmasters, Washington, DC

March 23   NCSL Foundation and SGAC Annual Roundtable, Washington, DC

March 23-25   American Copy Editors Society National Conference, St. Petersburg, Florida

March 28   WGR Toastmasters, Washington, DC

March 29-31   SGAC National Summit, New Orleans, Louisiana

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

Tennessee Gov. Bill Haslam issued a writ yesterday ordering a special election to fill a vacant seat in state House District 95.

The seat was left vacant after Rep. Mark Lovell resigned in February amid allegations of inappropriate sexual contact.

A special primary election will be held Thursday, April 27, with a special general to follow on Thursday, June 15. The winning candidate will serve out the remainder of Lovell’s term.

On February 28, the North Carolina Court of Appeals ruled that a three-judge panel did not have the authority to revive the two original boards after lawmakers had dissolved them with Senate Bill 4.

Gov. Roy Cooper is currently challenging Senate Bill 4 on the basis that the General Assembly overstepped its state constitutional authority when it adopted the law establishing an eight-member board to oversee elections and consider ethics complaints and issues.

Last month, the North Carolina Supreme Court blocked Senate Bill 4 from taking effect while the legal challenge against the law is pending. This latest ruling means there is not technically an Ethics Commission or Board of Elections. Gov. Cooper is expected to appeal the ruling to the state Supreme Court, which could reestablish the boards.

National:

Companies Lobbying Government Keep Spending Secret from Shareholders: Report
International Business Times – David Sirota | Published: 3/1/2017

A new report finds just 12 percent of publicly traded corporations in the S&P 500 disclose their lobbying expenditures to shareholders. Investors have increasingly called for corporate disclosure of both campaign contributions and lobbying. Some 90 percent of S&P 500 companies have board level policies regarding campaign contributions, compared to the 25 percent that have policies on lobbying. But those policies largely apply to the federal government. The study found disclosure at the state level is sparse. Five percent of S&P 500 corporations reveal which states they lobby in and two percent reveal aggregate lobbying costs.

Republican Lawmakers Introduce Bills to Curb Protesting in at Least 17 States
Washington Post – Christopher Ingraham | Published: 2/24/2017

Since the election of Donald Trump as president, Republican lawmakers in at least 17 states have introduced or voted on legislation to curb mass protests in what civil liberties experts are calling “an attack on protest rights throughout the states.” From Virginia to Washington state, legislators have introduced bills that would increase punishments for blocking highways, ban the use of masks during protests, and, in at least once case, seize the assets of people involved in protests that later turn violent. The proposals come after a string of mass protest movements in the past few years, covering everything from police shootings of unarmed black men to the Dakota Access Pipeline to the inauguration of Trump.

Federal:

Barring Reporters from Briefings: Does it cross a legal line?
New York Times – Adam Liptak | Published: 2/28/2017

The White House blocked a number of media outlets from entering Press Secretary Sean Spicer’s office for a scheduled briefing, a highly unusual breach of relations between the White House and its press corps. Aides to Spicer allowed in reporters from only a handpicked group of news organizations that, the White House said, had been previously confirmed to attend. Organizations allowed in included Breitbart News, the One America News Network, and The Washington Times, all with conservative leanings. Reporters from Time magazine and The Associated Press, who were set to be allowed in to the briefing, chose not to attend in protest. The White House move came hours after Trump delivered a slashing broadside against the news media in a speech at the Conservative Political Action Conference.

Sessions Met with Russian Envoy Twice Last Year, Encounters He Later Did Not Disclose
Washington Post – Adam Entous, Ellen Nakashima, and Greg Miller | Published: 3/1/2017

U.S. Attorney General Jeff Sessions spoke twice with Russia’s ambassador to the U.S. last year, raising new questions about contact between Trump campaign officials and the Kremlin. Sessions, a former senator from Alabama, did not disclose the contact with Russian Ambassador Sergey Kislyak during his confirmation hearings, testifying under oath that he “did not have communications with the Russians.” The contacts are coming under scrutiny because Sessions endorsed Donald Trump early in his presidential bid. A spokesperson for Sessions confirmed the contact with Kislyak, saying the attorney general spoke on the phone with the ambassador in September. That conversation took place during the time when intelligence officials assert that Russia was interfering with the U.S. presidential election through a hacking and influence campaign.

Supreme Court Backs FEC Disclosure Rules
Bloomberg BNA – Kenneth Doyle | Published: 2/28/2017

The U.S. Supreme Court upheld a requirement that forces groups to say who is paying for issue advertising directed at candidates in an approaching election. The justices affirmed a lower court decision in a case involving ads that mention candidates but do not call for the election or defeat of one. The Supreme Court has generally upheld disclosure requirements even as it has struck down limits on raising and spending money in political campaigns.

Trump Inspires Encryption Boom in Leaky D.C.
Politico – Andrew Restuccia and Nancy Cook | Published: 2/27/2017

In a capital worried about leaked information, many people are scrambling to cover their digital tracks. More than 70 workers from several federal agencies are using encrypted cellphone apps to arrange nighttime and weekend meetings at homes in the Washington, D.C. area to discuss their potential resistance to President Trump, said Danielle Brian, executive director of the Project on Government Oversight. The surge in the use of scrambled-communication technology – enabled by free smartphone apps such as WhatsApp and Signal – could skirt or violate laws that require government records to be preserved and the public’s business to be conducted in official channels. Defenders of federal workers argue that interest in encryption has skyrocketed as career employees ponder how to respond to an administration they fear will break the law and punish dissent.

Who’s Watching Trump’s Ethics Watchdogs?
Politico – Darren Samuelsohn | Published: 2/25/2017

The lawyers tasked with policing Donald Trump’s potential conflicts-of-interest are grappling with an oversight system that is disjointed and ineffective. More than two dozen attorneys working inside and outside government have a part of Trump’s ethics portfolio, but no one individual has visibility into the full picture. The set up means that in some cases the lawyers are overlapping while other areas of potential conflict go uncovered entirely. Perhaps a bigger issue for the watchdog effort is that the lawyers who have the job of safeguarding either the White House or the president and his family business do not see the conflict issues as deserving the significant attention they have received since Trump’s election win last November.

From the States and Municipalities:

Arizona – Arizona House Passes Bills to Restrict Citizen Initiatives
Arizona Republic – Mary Jo Pitzl | Published: 2/23/2017

In an attempt to gain control over laws proposed by citizens, the state House approved a package of bills designed to rein in the century-old initiative process enshrined in the Arizona Constitution at statehood. Opponents say the moves would undercut the power of the people to shape laws, and run counter to the citizen initiative process, while proponents argue lawmakers need the flexibility to fix unforeseen problems that might arise from a ballot measure. The measures now move to the Senate for consideration.

California – Regulators Investigating SDG&E for Potential Lobbying Violations
San Diego Union-Tribune – Joshua Emerson Smith | Published: 2/23/2017

State regulators said they are investigating San Diego Gas & Electric’s (SDG&E) efforts to influence the local adoption of government-run electricity programs, saying the company does not have permission to do so yet. Officials with SDG&E and its parent company, Sempra Energy, said the California Public Utilities Commission cleared their specially designated marketing division to lobby on community choice aggregation (CCA), a program that would give residents and businesses an alternative to SDG&E. After publicly lobbying on CCA before the San Diego County Board of Supervisors, officials with the SDG&E marketing arm, Sempra Services Corporation, said they have been meeting with lawmakers countywide on this issue. This lobbying caught the attention of the commission’s regulators. They said they are looking into the matter and violations could be subject to fines as high as $50,000 for each offense.

Colorado – How the Charities on Your Colorado Tax Form Used Connections, Money and Legislation to Earn the Coveted ‘Godsend’
Denver Post – Brian Eason | Published: 2/27/2017

Colorado’s charitable checkoff program became the nation’s first in 1977 and the state touts itself as a national leader for tax-season giving. The donations are collected when residents offer to donate portions of their tax refund or make contributions above the amount owed by filling out a supplemental form. But the official seal of approval by appearing on the form obscures uncomfortable realities. Most of the organizations receive no state oversight and won a spot with political clout. For groups that appear on the form, Sen. Lois Court said, “frequently it’s because there is a lobbyist available to help – that kind of knocks out those who can’t afford lobbyists.”

Florida – Rubio Is Asked to Leave Tampa Office Over Disruption from Weekly Protests
Tampa Bay Times – Tony Marrero | Published: 2/28/2017

The owner of Bridgeport Center has notified U.S. Mario Rubio’s office that it will not renew its lease in the Tampa office building. The reason is that demonstrations have become too disruptive to the other tenants and a costly expense for America’s Capital Partners, the building’s owner. A variety of progressive groups who oppose President Trump’s agenda have gathered at least once a week at the building, lining up on the sidewalk to wave signs and shout messages. Rubio’s seven statewide offices have been lightning rods for demonstrations. Gatherings in front of the Tampa office have surpassed 150 people.

Florida – Senator Seeks Probe into Whether Lobbyist Lisa Miller Posed as ‘Concerned Citizen’ During Call
Florida Today – Michael Malone | Published: 2/24/2017

State Sen. Kevin Rader is asking Gov. Rick Scott to investigate whether lobbyist Lisa Miller posed as a “concerned citizen” to mislead participants in a conference call with a company that rates Florida insurers. Miller has denied posing as someone named Mary Beth Wilson to praise Demotech, Inc. during the call. Demotech held the call to explain a change in its rating system and discuss the downgrade of some Florida insurance companies. Jeff Grady, president of the Florida Association of Insurance Agents, first reported on his blog that “most industry professionals” believed the caller was Miller, of Lisa Miller & Associates. He did not name her, but posted a link to her lobbyist registration page, which identifies her as representing Demotech, among other clients.

Illinois – Six More Lobbyists Face Fines for Using Emanuel’s Private Emails
Chicago Sun-Times – Fran Spielman | Published: 2/27/2017

After hitting former Uber executive David Plouffe with a record $90,000 fine for emailing Mayor Rahm Emanuel without registering as a lobbyist, the Chicago Board of Ethics issued probable cause letters to five more unregistered lobbyists and the companies they represent. A sixth letter was issued to a registered lobbyist accused of failing to report a contact, as required by law. Ethics board Chairperson William Conlon did not identify the six lobbyists in question or their companies. He would only say the maximum fines are “substantial” and the names would be released after the accused have an opportunity to respond and exercise their right to an administrative hearing. Other sources said all six individuals had lobbied Emanuel through the private email accounts the mayor used to conduct public business.

Minnesota – For Local Officials with Family Ties, Transparency Counts
Minnesota Public Radio – Brandt Williams | Published: 2/24/2017

Minneapolis City Council member and mayoral hopeful Jacob Frey got married last July, and his wife is a lobbyist. Sarah Clarke works for Hylden Advocacy and Law, which lobbies state and local governments, including Minneapolis. governments, including Minneapolis. In March of last year, the firm represented an industry group which opposed a proposed prohibition on plastic carry-out bags. Frey was one of 10 council members who voted to approve the ban. But Frey initially neglected to note his wife’s employment on a form he and other Minneapolis elected officials have to file every January. The so-called statement of economic interest form requires city officials to disclose any outside sources of compensation, along with that of their spouses or domestic partners.

New Jersey – A $500 Contribution to Republicans Costs Paving Company $7M
NJ.com – Dave Hutchinson (NJ Advance Media) | Published: 2/27/2017

A court upheld the decisions of two New Jersey agencies to rescind two contracts totaling about $7 million to a paving business and ban the company from any state contracts through the remainder of Gov. Chris Christie’s second term because of its $500 contribution to Somerset County Republicans. The court found that the donation disqualified Della Pello Paving from receiving state contracts under the state’s “pay-to-play” law, which bars state contracts exceeding $17,500 to a business that contributed more than $300 during the preceding 18 months to the governor, a candidate for governor, or any state or county political party committee.

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.

We can’t wait to see everyone at the Public Affairs Council National PAC Conference. If you’ll be attending, come on by and say hello at our Resource Marketplace booth.

This month, Gov. Ricardo Rosello approved a nonbinding referendum to determine whether Puerto Rico will continue free association or seek statehood or independence.

The referendum will be held on June 11, 2017, and will give voters the choice between statehood and independence/free association. Previous referendums and plebiscites have given independence and free association as separate options, but the upcoming referendum lumps them together.

If a majority chooses independence/free association, a second referendum will be held in October to determine the preference between those options. If the referendum passes in favor of statehood, Puerto Rico, currently facing $70 billion in public debt, would have access to more federal funding if ultimately approved by the U.S. Congress as the 51st state.

Currently, Puerto Ricans are U.S. citizens but cannot vote in presidential elections and have limited representation in Congress.

I cannot express how busy this year is with the new federal administration, new state governors and legislators, and it is hard to keep up with the number of new municipal officials. I keep track of a lot of road warriors on Facebook and Twitter and know how difficult it is to do the next right thing on your huge TO DO list.

Let’s not forget we need to take the time for our own learning—for us to be the best we can be at our organization.

Two of my favorite conferences are around the corner.

1. Public Affairs Council National PAC Conference begins Monday in Miami Beach. This conference has for decades provided the tools needed to increase your PAC contributions and stay in compliance with all the reports due for those contributions. More info at www.pac.org.
2. State Government Affairs Council will host its annual National Summit March 29th to March 31st in New Orleans. I am moderating a session on lobbying where we will discuss specific gifts which can be prohibited in the states. The panel will include Carol Laham from Wiley Rein and Mike Thompson from Personal Care Fragrance Association. More info at www.sgac.org.

There are other meetings throughout the year. We list the events we are attending on the left side of the email of Compliance Now, within Compliance Now, as well as on our website. I have always believed in professional development and many of you who see us out and about know this as I travel with an entourage of staff who also attend events for their professional development.

If you ever have any questions about conferences we are attending, do not hesitate to reach out. We will share any information you need so you can join us.

Thank you.

Elizabeth Z. Bartz

President and CEO
@elizabethbartz

On Wednesday, Gov. Steve Bullock called a special election to take place on May 25 to fill Montana’s only seat in the U.S. House of Representatives vacated by Ryan Zinke.

Zinke was confirmed this week by the U.S. Senate as President Donald Trump’s new Interior Department secretary.

Zinke has refrained from participating in dozens of House votes since his cabinet nomination, leaving Montana without representation for most of 2017.

So far, seven Republicans and eight Democrats have filed for candidacy seeking the respective party nominations. The Democratic Party will hold a special nominating convention on March 5.

Ohio state Rep. Greta Johnson announced her resignation this morning, effective at the end of the month.

She is stepping down to take a position as deputy law director for Summit County Executive Ilene Shapiro.

Johnson was elected in 2014 to represent District 35. Prior to serving in the Legislature, she served as a prosecutor in Mahoning County and Summit County, as well as with the city of Akron.

The House Democratic Caucus will soon announce the process for selecting her replacement.

On March 1, a new lobbying law took effect in the Regional Municipality of Peel, Ontario. By-law Number 47-2016 creates a Lobby Registry and Registration System and establishes the position and duties of the Lobbyist Registrar.

The new law covers consultant, in-house, and voluntary unpaid lobbyists. A return is required to be filed within five business days of a covered communication or may take place in advance of lobbying. Lobbyists must register a separate subject matter registration for each issue they lobby and must include a description of the issue being lobbied, who will be lobbied, and when the lobbying will occur or has occurred.

Former public office holders are prohibited from lobbying for one year after leaving their position. Lobbying on a contingency basis is also prohibited under the new law.

Lobbying

“Companies Lobbying Government Keep Spending Secret from Shareholders: Report” by David Sirota for International Business Times

South Dakota: “Legislature Expands Lobbying Ban to More Officials and Doubles Length” by Bob Mercer for Rapid City Journal

Washington: “Washington Commission Confirms What’s Upstream Stayed Within State Law” by Don Jenkins for Capital Press

Campaign Finance

Mississippi: “House Amends, Passes Senate Campaign Finance Bill” by Geoff Pender for Jackson Clarion-Ledger

Ethics

“White House Lawyer Twice Briefed Conway on Ethics Rules Following Ivanka Product Pitch” by Josh Gerstein for Politico

“White House Power Player Jared Kushner Is Keeping Parts of His Real Estate Empire” by Justin Elliot and Al Shaw for ProPublica

Connecticut: “Watchdog Agencies Worried About Budget Cuts” by Mike Savino for Meriden Record-Journal

Florida: “Rubio Is Asked to Leave Tampa Office Over Disruption from Weekly Protests” by Tony Marrero for Tampa Bay Times

Ohio: “In Selling Bill, Ohio Senator Describes Possibly Illegal Deal” by Jim Siegel for Columbus Dispatch

Redistricting

Virginia: “Supreme Court Says Virginia Redistricting Must Be Reexamined for Racial Bias” by Robert Barnes for Washington Post

On February 28, the House of Representatives passed Senate Bill 131 to ban elected officers and other officials from lobbying during a period of two years after termination of service in the state government. The bill now goes to Gov. Dennis Daugaard for consideration.

Senate Bill 131 is one of the pieces of legislation that was introduced by lawmakers to placate citizen outrage after lawmakers repealed Initiated Measure 22, the voter approved measure to overhaul ethics and campaign finance laws.

Campaign Finance

“Judge Backs Blind FEC Eye on Campaign-Finance Violations” by Tim Ryan for Courthouse News Service

New Jersey: “A $500 Contribution to Republicans Costs Paving Company $7M” by Dave Hutchinson (NJ Advance Media) for NJ.com

Elections

Texas: “Justice Department Changes Its Position in High-Profile Texas Voter-ID Case” by Sari Horwitz for Washington Post

Ethics

“From K Street to Congo: Abramoff’s new adventure” by Anna Palmer, Jake Sherman, and John Bresnahan for Politico

“Who’s Watching Trump’s Ethics Watchdogs?” by Darren Samuelsohn for Politico

New York: “The F.B.I. Questioned de Blasio. Hours Later, This Man Was Fired.” by William Rashbaum, William Neuman, and J. David Goodman for New York Times

Texas: “Political Corruption Trial Kicks off in Dallas” by David Lee for Courthouse News Service

West Virginia: “WV Lawmakers Pass Nepotism Ban” by Eric Eyre for Charleston Gazette

Legislative Issues

“The DNC Isn’t Enough: Democrats demand more leadership changes” by Gabriel Debenedetti and Edward-Isaac Dovere for Politico

Lobbying

Colorado: “How the Charities on Your Colorado Tax Form Used Connections, Money and Legislation to Earn the Coveted ‘Godsend’” by Brian Eason for Denver Post