The state Appellate Division recently upheld two state agency decisions related to contractor pay-to-play violations.

Della Pello Paving, Inc. lost two contracts totaling roughly $7 million and was barred from contracting with the state for the remainder of Gov. Chris Christie’s second term because it made a $500 contribution to Somerset County Republican Organization.

State pay-to-play laws prohibit a contractor from receiving a contract exceeding $17,500 if it contributed more than $300 during the previous 18 months to a county political party committee.

Della Pello Paving challenged the state agency decisions claiming the contribution was intended for Sheriff Frank Provenzano’s campaign and not for the county political committee. The inadvertent contribution needed to be returned within 30 days to avoid a pay-to-play violation. Della Pello did not request and receive reimbursement until more than a year after making the donation; moreover, Provenzano was not running for re-election the year the contribution was made.

Following the decision of the appellate court, Della Pello’s attorney sought emergency review by the state Supreme Court, but the court refused to hear the case.

The Virginia General Assembly adjourned the 2017 regular session sine die on Saturday, February 25.

A major focus of the short session was the commonwealth’s biennial budget and several bills supporting second amendment rights received strong support from both sides of the aisle.

A reconvened session is scheduled for April 5, 2017, for lawmakers to consider bills and recommendations returned to them by the governor.

The Ohio Secretary of State Campaign Finance Division recently released revised contribution limits. The new limits are effective February 25, 2017, through February 24, 2019.

Among the changes, the limit individuals, political action committees (PACs), and political contributing entities (PCEs) may give to statewide or state legislative candidates increased from $12,532.34 per election period to $12,707.79 per election period.

The secretary of state adjusts statutory contribution limits in each odd-numbered year based on the Consumer Price Index. 

On February 27, the West Virginia House of Delegates passed House Bill 2001 requiring companies and consultants with state contracts to disclose the names of those who have at least a 25 percent financial interest in the contract.

Under the bill, business entities performing the work, such as lawyers, brokers and advisors, must also be disclosed to the Ethics Commission. The bill also includes provisions to expressly prohibit nepotism. House Bill 2001 unanimously passed the House and now moves to the Senate for consideration.

Campaign Finance

“U.S. Top Court Rejects Challenge to Political Ad Disclosure Rules” by Andrew Chung (Reuters) for U.S. News & World Report

West Virginia: “WV House Bill Requires Fundraiser Reports During 60-Day Session” by Eric Eyre for Charleston Gazette

Wisconsin: “Wisconsin Ethics Commission Records Taken in John Doe Leak Probe” by Patrick Marley for Milwaukee Journal Sentinel

Elections

“Democrats Elect Thomas Perez, Establishment Favorite, as Party Chairman” by Jonathan Martin for New York Times

Ethics

“Trump Inspires Encryption Boom in Leaky D.C.” by Andrew Restuccia and Nancy Cook for Politico

Minnesota: “For Local Officials with Family Ties, Transparency Counts” by Brandt Williams for Minnesota Public Radio

Washington: “Ethics Board Fines Puyallup Lawmaker $5,000 over Facebook Posts” by Melissa Santos for The News Tribune

Lobbying

Florida: “Senator Seeks Probe into Whether Lobbyist Lisa Miller Posed as ‘Concerned Citizen’ During Call” by Michael Malone for Florida Today

Illinois: “Six More Lobbyists Face Fines for Using Emanuel’s Private Emails” by Fran Spielman for Chicago Sun-Times

New York: “Reform Groups Call on Wright to Drop Dual Role” by Chris Bragg for Albany Times Union

Today, the United States Supreme Court affirmed electioneering communication disclosure requirements under the Bipartisan Campaign Reform Act (BCRA).

In Independence Institute v. FEC, the Supreme Court affirmed, without a written opinion, a lower court’s summary judgement against Independence Institute, a Colorado based 501(c)(3) tax-exempt organization. Independence Institute argued the BCRA’s disclosure requirements for electioneering communications were overbroad and violated the First Amendment.

Electioneering communication is defined as any broadcast, cable, or satellite communication referring to a clearly identified federal candidate, made within 30 days of a primary election or 60 days of a general, special, or runoff election, and targeted to the relevant electorate.

On November 3, 2016, the U.S. District Court for the District of Columbia had rejected the Independence Institute’s challenge to the BCRA’s electioneering communication provisions and granted the Federal Election Commission’s motion for summary judgment.

Campaign Finance

“Billionaires and Corporations Helped Fund Donald Trump’s Transition” by Carrie Levine for Center for Public Integrity

Canada: “Lobbying Commissioner Probing Fundraiser Hosted by Apotex Chair: Democracy Watch” by The Canadian Press for The Globe and Mail

New Hampshire: “NH Senate Votes to Require Political Advocacy Groups to Register, Report Expenditures” by John DiStaso  for WMUR

Elections

“David Brock, Donors Wade into State Fights” by Kenneth Vogel for Politico

Arizona: “Arizona House Passes Bills to Restrict Citizen Initiatives” by Mary Jo Pitzl  for Arizona Republic

Ethics

“White House Selectively Blocks Media Outlets from Briefing with Spicer” by Hadas Gold for Politico

“Priebus Call to FBI Violated Norms, If Not Rules” by Isaac Arnsdorf for Politico

“Law Professors File Misconduct Complaint Against Kellyanne Conway” by Sari Horwitz for Washington Post

“Bobbleheads, Yes. Official Tweets, No. Federal Workers Wonder Where the Lines Are in the Trump Era.” by Lisa Rein for Washington Post

“Republican Lawmakers Introduce Bills to Curb Protesting in at Least 17 States” by Christopher Ingraham for Washington Post

Kentucky: “Auditors Find Shoddy Management, Conflicts of Interest at Kentucky Horse Park” by Linda Blackford for Lexington Herald-Leader

Missouri: “Missouri Governor Shuns State Plane, Flies at Private Costs” by David Lieb (Associated Press) for Springfield News-Leader

South Dakota: “Flood of Bills Addresses IM22 Provisions” by Bob Mercer for Rapid City Journal

Lobbying

California: “Regulators Investigating SDG&E for Potential Lobbying Violations” by Joshua Emerson Smith in San Diego Union-Tribune

EU: “New Lobbying Rules Face Uncertain Future” by Harry Cooper for Politico

Illinois: “Former Obama Aide Fined $90,000 for Illegally Lobbying Emanuel on Uber’s Behalf” by Bill Ruthhart and Hal Dardick for Chicago Tribune

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

On April 3, five by-elections will be held for the Canadian House of Commons. On February 22, Prime Minister Justin Trudeau announced four by-elections for the electoral districts of Saint-Laurent, Quebec, Calgary Heritage and Calgary Midnapore, Alberta, and Markham—Thornhill, Ontario. Trudeau had previously announced on February 19 a by-election would be held for the electoral district of Ottawa—Vanier, Ontario.

The vacancies requiring the by-elections came about for different reasons. Last year, former prime minister Stephen Harper and member of Parliament(MP) Jason Kenney resigned from their House of Commons seat representing electoral districts Calgary Heritage and Calgary Midnapore, respectively.

The seats for electoral districts Saint-Laurent and Markham-Thornhill were left vacant last month after ministers Stephane Dion and John McCallum were named to diplomatic posts, according to the Globe and Mail. The seat representing electoral district Ottawa-Vanier became vacant when MP Mauril Belanger died last year from amyotrophic lateral sclerosis.

Federal:

Flynn Departure Erupts into a Full-Blown Crisis for the Trump White House
Washington Post – Karen DeYoung, Abby Phillip, and Jenna Johnson | Published: 2/14/2017

President Trump’s ouster of national security adviser Michael Flynn, and the circumstances leading up to it, have become a major crisis for the fledgling administration, forcing the White House on the defensive and precipitating the first significant breach in relations between Trump and Congress. Senate Majority Leader Mitch McConnell said it was “highly likely” the events leading to Flynn’s departure would be added to a broader probe into Russian meddling in the U.S. presidential election. Intercepts showed Flynn discussed U.S. sanctions in a phone call with the Russian ambassador, a conversation topic that Flynn first denied and then later said he could not recall. McConnell’s comments followed White House revelations that Trump was aware “for weeks” that Flynn had misled Vice President Pence and others about the content of his late December talks with Russian Ambassador Sergey Kislyak.

Report Shows ‘Untapped Power’ of Constituent Advocacy
Roll Call – Bridget Bowman | Published: 2/13/2017

The Congressional Management Foundation released a report highlighting more than a decade’s worth of its surveys that show how citizens can best influence lawmakers. According to the group’s research, citizens who show up in person and are well-prepared with facts and arguments can have a sizable impact on undecided legislators. But recent flare-ups at town hall meetings across the country have also demonstrated the impact of constituents who show up and make their voices heard. Bradford Fitch, one of the report’s authors, said phone calls and emails are not necessarily the most effective ways of communicating with legislators, and neither is a confrontation. “When you’re yelling, Congress isn’t listening,” Fitch said.

Trump Campaign Aides Had Repeated Contacts with Russian Intelligence
New York Times – Michael Schmidt, Mark Mazzetti, and Matt Apuzzo | Published: 2/14/2017

Intercepted calls and phone records show several aides and allies to President Trump’s campaign were in contact with senior Russian intelligence officials. Current and former U.S. officials who spoke with The New York Times said the contacts were discovered during the same time that intelligence agencies were investigating Russia’s extensive hacking campaign, later determined to be aimed at helping Trump win the White House. The agencies sought to learn whether the Trump campaign was colluding with the Russians on the hacking or other efforts. The officials interviewed said so far, they had seen no evidence of such cooperation. But the intercepts alarmed American intelligence and law enforcement agencies, in part because of the amount of contact that was occurring while Trump was speaking glowingly about Russian President Vladimir Putin.

Who is Donald McGahn, the Fiery Lawyer at the Center of Virtually Every Trump Controversy?
Washington Post – Matt Zapotosky and Sari Horwitz | Published: 2/14/2017

As White House counsel, Donald McGahn is supposed to provide the president with legal guidance on the thorniest issues of the day, and to manage disputes between power players inside the administration and the various executive agencies. McGahn has been at the center of virtually every controversy during the Trump administration. He is a veteran campaign finance lawyer and former member of the FEC. Before taking over the role in the administration, he worked at the Jones Day law firm and as general counsel to the Trump campaign. He is a consummate Washington insider, but like the man for whom he works, he has an independent streak, those who know him say. “Don is not a buttoned-down guy,” said Bradley Smith, a law professor at Capital University and longtime professional friend of McGahn.

From the States and Municipalities:

Florida – At Miami’s Airport, There’s Economy, First Class and … Politician
Miami Herald – Douglas Hanks | Published: 2/8/2017

A new report from the Miami-Dade ethics commission chastised the county-owned Miami International Airport for offering elected officials VIP treatment, including golf-cart rides, cutting to the front of security and Customs, and other courtesies normally reserved for foreign dignitaries. Investigators concluded most of the trips by officeholders came during official government business. But there are multiple mentions of personal travel too, including trips to visit sick relatives and other unspecified vacations. The airport’s Protocol Office arranged four escorts for Rebeca Sosa, a county commissioner, and three for her sister. “These are unexplained,” the report said of the sibling’s VIP transits.

Florida
These Lawmakers Are On the Payroll of Firms That Lobby the Legislature
Sarasota Herald-Tribune – Zac Anderson | Published: 2/12/2017

The Florida Bar Association once issued a formal ethics opinion effectively prohibiting state lawmakers from working at firms that lobby the Legislature. That ethics opinion was rescinded in 1999 and now at least six Florida lawmakers, including the House speaker, work for law firms that lobby the Legislature. Those who defend the practice say there are provisions in state law and legislative rules to address any conflicts-of-interest. Some also argue that restricting such employment would discourage well-qualified individuals from serving in the Legislature because they would have to give up their jobs with big firms.

Kentucky – GOP Senators Want to Cut Sex Harassment Training
Louisville Courier-Journal – Morgan Watkins | Published: 2/13/2017

A few Republican state senators want to eliminate required sexual harassment training for lawmakers and cut back on the ethics-related instruction they receive, citing concerns about the effectiveness of those initiatives. Sen. John Schickel is sponsoring a bill would repeal existing requirements for lawmakers to go through sexual harassment and workplace harassment training. It also would require Kentucky legislators to sit through only 30 minutes of ethics-related instruction each January instead of the three hours currently mandated by state law. “It’s nothing more than political correctness training,” Schickel said. “If you don’t have good manners and good values when you come to Frankfort, I can assure you Frankfort will not teach them.”

Maryland – Gov. Hogan’s Office Has Blocked 450 People from His Facebook Page in Two Years
Washington Post – Ovetta Wiggins and Fenit Nirappil | Published: 2/8/2017

After a deluge of comments asking that he denounce President Trump’s controversial travel ban, Maryland Gov. Larry Hogan’s office blocked numerous posters and deleted their messages from his Facebook page. Gubernatorial spokesperson Doug Mayer said the governor’s office has blocked 450 people since Hogan took office two years ago. The office does not have a specific policy for handling comments on Hogan’s page, which has more than 146,500 likes. Mayer said most of the removed comments were “vulgar, derogatory, hateful or racist,” but aides have also deleted those that are a part of an organized effort. Erich Sommerfeldt, a public relations professor at the University of Maryland, said deleting negative comments, rather than responding to them, can hurt a company or public figure’s brand.

Missouri – Campaign Contribution Law Bans Corporation Donations to All Candidates
Missouri Times – Benjamin Peters | Published: 2/14/2017

Constitutional Amendment 2, which was approved by Missouri voters in November, places limits and rules on how candidates and committees can accept donations, including how much can be given. A recent advisory opinion from the Missouri Ethics Commission says the new law prohibits a corporation or labor organization from making direct contributions to a campaign committee, candidate committee, exploratory committee, or political party. That means no corporation may contribute to a candidate’s campaign at the statewide level. But with the race for St. Louis mayor and a number of local and municipal elections weeks away, the question has been raised of whether these rules apply to municipal election.

New Jersey – N.J. Election Agency Could Soon Fill Key Posts
Bergen Record – Salvador Rizzo | Published: 2/14/2017

Gov. Chris Christie and Democratic senators have struck a deal to reactivate New Jersey’s election watchdog agency, which has been toothless for nearly a year, unable to hold meetings or punish candidates who violate campaign finance restrictions. Senate Democratic leaders said they expect to fill all of the vacancies by March 13 on the Election Law Enforcement Commission (ELEC). Restoring ELEC to its full power is key to ensuring the integrity of this year’s election for governor, all 120 legislative seats, and hundreds of local races, experts said. Three persistent vacancies on ELEC’s four-member board have prevented it from holding meetings since last March, an unprecedented 11-month stretch of inactivity since the agency was founded in 1972.

North Carolina – N.C. Supreme Court Blocks Law Stripping Governor of Election Oversight Powers
Winston-Salem Journal – Richard Craver | Published: 2/13/2017

The North Carolina Supreme Court blocked a state law that strips the new Democratic governor of powers to oversee elections. A lower appeals court briefly let the law to take effect, allowing a revamped state elections board to meet for the first time. It is one of the changes passed in December that shifted power over running elections away from Gov. Roy Cooper. The law ends the practice of allowing the governor’s party to hold majorities on all state and county elections boards. Elections board positions would be evenly divided between major-party partisans. Republicans would control elections during even-numbered years, typically election years. It also combines the State Board of Elections with the campaign finance, lobbying, and ethics commissions into one state agency.

Tennessee – Amid Ongoing Durham Scandal, Probe Shows Problems with Law
The Tennessean – Joel Ebert and Dave Boucher | Published: 2/13/2017

A recent state audit that said former Rep. Jeremy Durham violated Tennessee’s campaign finance law is “packed with problematic stuff” that may provide fertile ground for an ongoing federal probe, said former U.S. Attorney Jerry Martin. The scrutiny on Durham shines a light on the state campaign finance law, created with light punishments by those it is intended to police. In addition, Durham’s actions outlined in the audit offer a glimpse of the criminal consequences he could face.

Texas – How Blind Is This Texas Oil Regulator’s Blind Trust, Managed by His Brother-in-Law?
Dallas News – Steve Thompson | Published: 2/7/2017

Since his election to a seat on the Texas Railroad Commission in 2014, Ryan Sitton has voted on dozens of issues involving energy companies that hire his firm, Pinnacle Advanced Reliability Technologies. Its business is helping clients ensure equipment stays reliable. Many of these issues have come before the oil and gas commission as part of its consent agenda, where items of no controversy are packaged together for approval. But a few have been contentious, and Sitton has played big roles in deciding them. Not once has Sitton disclosed a relationship or recused himself. Texas law prohibits state officials from voting on matters in which they have a “personal or private interest” and requires them to publicly disclose such conflicts. But the law does not clearly define a “personal or private interest.”

Vermont – Scott Administration Discourages Fraternizing with Lawmakers, Lobbyists
Vermont Press Bureau – Neal Goswami | Published: 2/10/2017

Vermont Gov. Phil Scott reportedly has directed staff and administrative personnel to avoid fraternizing after hours with legislators and lobbyists, but some observers say the directive is unrealistic in tiny Montpelier. Many states have codes of conduct for state employees and officials to follow regarding lobbyists, as do the federal government and the armed forces. But how realistic is Scott’s directive given the long tradition of lawmakers, lobbyists, and state officials rubbing – and bending – elbows together after hours?

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.

A bill creating an independent ethics commission is advancing through the New Mexico legislature.

House Joint Resolution 8 (HJR 8) seeks to amend the state constitution and establish a state ethics commission. The ethics commission would oversee complaints against public officials, both in the legislative and executive branches, as well as lobbyist and government contractors.

If passed, the proposed amendment would be placed on the 2018 general election ballot for voter approval.

HJR 8 unanimously passed the House Local Government, Elections, Land Grants and Cultural Affairs Committee and will be heard by the House Judiciary Committee next.

The Louisiana Legislature adjourned a special legislative session on Wednesday, February 22, after approving a deal to close the state’s $304 million budget deficit for the fiscal year ending June 30.

Lawmakers agreed to use $99 million from the state’s rainy day fund, combined with shuffling allocated money and spending cuts across the Department of Education, State Police, and local offices offering mental health and addiction treatment.

Gov. John Bel Edwards stated budget stabilization will be a focus in the coming session. Louisiana’s 2017 regular legislative session is scheduled to convene April 10.

On March 1, Commissioner Ann M. Ravel will resign from the Federal Election Commission (FEC). In her February 19 resignation letter to the president, Commissioner Ravel urged he prioritize campaign finance reform, strengthen disclosure law, and “reduce reliance on the wealthy.”

With Ravel’s absence, there will be three registered members of the Republican Party and two registered members of the Democratic Party on the Commission. The FEC requires at least four commissioners to agree for any official action. A replacement for Ravel will be selected by President Trump and must be confirmed by the U.S. Senate.

While not more than three members of the commission may be registered with the same political party, the president is not obligated to nominate a member of the Democratic Party, of which Ravel is a registered member.

This month, the Austin City Council unanimously voted to exempt City Council and their staff from being subject to punishment for interference with personnel matters with a clause in the city charter aimed at preventing elected officials from pressuring city staff to go against their professional and unbiased judgment in making official decisions.

This vote came one year after City Council asked for amendments to the city code to give the City’s Ethics Review Commission authority over the interference clause which were unanimously approved in November 2016.

Under the new ordinance approved this month, allegations of City Council ethics violations will go to the Auditor and Ethics Review Commission and any issues arising under the City Charter Clause will be decided by the Council and City Manager.