The Vermont Legislature adjourned the 2017 regular session today, May 19, 2017. Lawmakers delayed adjournment by more than a week as they continued negotiations on the state budget.

The budget includes a health insurance savings program for teachers, as demanded by Gov. Phil Scott in the eleventh hour of the session. With little time to create the proposal, the final version passed by both houses is expected to meet the governor’s veto stamp and the specter of a special session looms.

Also passed by both houses, and awaiting the governor’s action, is a bill to establish a state ethics commission and a state code of ethics.

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

Federal:

Deputy Attorney General Appoints Special Counsel to Oversee Probe of Russian Interference in Election
Washington Post – Devlin Barrett, Sari Horwitz, and Matt Zapotosky | Published: 5/18/2017

The Justice Department appointed Robert Mueller, a former FBI director, as special counsel to oversee the investigation into ties between President Trump’s campaign and Russian officials, dramatically raising the legal and political stakes in an affair that has threatened to engulf Trump’s presidency. The decision by Deputy Attorney General Rod Rosenstein came after a cascade of damaging developments for Trump in recent days, including his abrupt dismissal of James Comey as FBI director, and the subsequent disclosure that the president asked Comey to drop the investigation of his former national security adviser, Michael Flynn.

DOJ Deflects Calls for More Foreign Agents Act Transparency
Bloomberg BNA – Kenneth Doyle | Published: 5/11/2017

Watchdogs are calling for the U.S. Department of Justice to make public all of its advisory opinions on the Foreign Agents Registration Act (FARA), a law aimed at letting the public know about foreign influence on U.S. politics. The Justice Department recently posted online brief summaries of three past advisory opinions issued under FARA. It has indicated no plans for further action. Meanwhile, other, more complex questions about who must register under the law have increased. High-profile advocates, including Michael Flynn, President Trump’s former national security adviser, recently filed disclosures under FARA revealing past work for foreign governments or political parties.

Reckless Stock Trading Leaves Congress Rife with Conflicts
Politico – Maggie Severns | Published: 5/14/2017

A Politico investigation found 28 House members and six senators each traded more than 100 stocks in the past two years, placing them in the potential cross hairs of a conflict-of-interest on a regular basis. A handful of lawmakers, some of them frequent traders and some not, disproportionately trade in companies that also have an interest in their work on Capitol Hill. House and Senate members who are active traders insist their buying and selling is a normal part of managing their finances, as with any American who wants to save for retirement. But the clear majority of lawmakers avoid potential conflicts by buying mutual funds, putting their portfolios in blind trusts, or simply staying out of the stock market.

The Right Builds an Alternative Narrative About the Crises Around Trump
New York Times – Jeremy Peters | Published: 5/17/2017

As Americans process a dizzying week of damning revelations about President Trump, he has found shelter on the right, where the collective judgment of the conservative media and the Republican Party so far seems to be to shift the blame and change the subject. His most fervent supporters are building alternative narratives to run alongside the “mainstream media” account, from relatively benign diversions to more bizarre conspiracies. For many Trump loyalists, the issue is not whether his presidency is messy and chaotic and dysfunctional; the more relevant question is whether they see anyone else who is equipped to change Washington in the way Trump promised he would.

What Is Obstruction of Justice? An Often-Murky Crime, Explained
New York Times – Charlie Savage | Published: 5/16/2017

The report that President Trump asked then-FBI Director James Comey to drop the investigation into former National Security Advisor Michael Flynn has sparked charges that Trump is obstructing justice. Several federal statutes criminalize actions that impede official investigations. While some examples of illegal ways to thwart the justice system are specific, like destroying evidence, the law also includes broad, catchall prohibitions. Could that cover asking the FBI director to drop part of an investigation, and later firing him?

From the States and Municipalities:

California – Mayor’s Top Aide Got Married at Bayfront Estate of Developer and SoccerCity Supporter
San Diego Union-Tribune – Jeff McDonald | Published: 5/12/2017

Stephen Puetz, chief of staff to San Diego Mayor Kevin Faulconer, took his wedding vows at a private home owned by developer Morgan Dene Oliver, who advocating for the SoccerCity plan for the city-owned Qualcomm Stadium property. Puetz said he received no special treatment from Oliver. As soon as he was offered use of the estate, he said, he contacted the city Ethics Commission to see how he could best meet the conflict-of-interest rules. Puetz said he and his wife, former council aide and registered lobbyist Diana Palacios, paid for the wedding themselves, including a reasonable fee to Oliver for use of the property.

Massachusetts – City Council Debates Level of Transparency in Lobbying Act
Spare Change News – Beth Treffeisen | Published: 5/15/2017

The Boston City Council held a hearing to discuss Mayor Martin Walsh’s re-filing of the proposed home rule petition on lobbying. At the hearing, questions soon arose on whether this draft is what would work best for the city. In its current form, the petition is modeled after existing lobbying regulations at the state-level, but also goes beyond the state’s framework by covering communications not only with elected officials but also with all city employees at all levels of municipal government.

Missouri – Greitens Fails to Meet Promises on Ethics Laws
Southeast Missourian – Summer Ballentine (Associated Press) | Published: 5/15/2017

Bills to strengthen state ethics laws, a campaign pledge of Missouri Gov. Eric Greitens, languished and failed to make it to his desk before lawmakers adjourned the 2017 legislative session. While Greitens said he “set the example on ethics” by enacting lobbyist-gift and revolving-door bans in the executive branch, lawmakers said a not-for-profit with secret donors that promotes his agenda helped undermine his policy proposals in the Legislature.

Montana – New Commissioner Takes Over at Political Practices Office
U.S. News & World Report – Matt Volz (Associated Press) | Published: 5/15/2017

Jeff Mangan has taken over as Montana’s commissioner of political practices, succeeding Jonathan Motl. The office is a political hot seat by nature of its role as the independent overseer of the campaign activities of the state’s elected officials. Allegations of partisan bias tend to dog the commissioner, who is appointed by the governor and must be confirmed by the Senate. As a result, the commissioner’s office has seen frequent turnover – Mangan will be the fifth person to hold the office since Dennis Unsworth in 2010, and he is the first in that time to be confirmed to a full six-year term.

New Hampshire – N.H. Ethics Committee Has Fielded Dozens of Complaints, But Issued No Violations
New Hampshire Public Radio – Casey McDermott | Published: 5/15/2017

The Executive Branch Ethics Committee has spent much of the last decade maintaining a remarkably low profile – it has never held a public hearing on a complaint or recommended any penalties against public officials accused of ethics breaches. From the beginning, this seven-member panel was designed to serve as a resource and a kind of conscience-check for state officials. On that end, it has published dozens of advisory opinions, but the committee was also supposed to be a place where the public could turn when they thought executive branch officials were breaking the rules.

New Jersey – ‘P.S.: One of the ring leaders works in your bank!’: Is this congressman’s fundraising letter a threat?
Washington Post – Amber Phillips | Published: 5/15/2017

In a hand-written note, U.S. Rep. Rodney Frelinghuysen outed a member of an activist group opposing the incumbent Republican to her employer. Saily Avelenda was still a senior vice president and assistant general counsel at Lakeland Bank in March when Frelinghuysen sent a fundraising letter to a member of the bank’s board of directors informing him that Avelenda was one of the “ringleaders” of NJ 11th for Change. The group formed in response to the election of President Trump and has been pressuring Frelinghuysen to meet with constituents in his district and to oppose Trump’s agenda. Avelenda subsequently resigned from her position at the bank.

North Carolina – Strict North Carolina Voter ID Law Thwarted After Supreme Court Rejects Case
New York Times – Adam Liptak and Michael Wines | Published: 5/15/2017

The U.S. Supreme Court will not review a decision that found North Carolina’s 2013 voting law discriminated against African American voters. A unanimous panel of the U.S. Court of Appeals for the Fourth Circuit had found in 2016 that North Carolina legislators had acted “with almost surgical precision” to blunt the influence of African American voters. Last summer, the Supreme Court had divided evenly on whether the law could be used in last fall’s election while the appeals continued. As is the court’s custom, the justices gave no reason for declining to hear the case. But Chief Justice John Roberts issued a statement noting there was a dispute about who represented the state in the case and nothing should be read into the court’s decision to decline to hear it.

South Carolina – State Rep. Rick Quinn Indicted by State Grand Jury
Charleston Post & Courier – Glenn Smith | Published: 5/16/2017

State Rep. Rick Quinn is the fourth South Carolina legislator charged as part of a corruption probe. A grand jury indicted Quinn on two counts of misconduct in office. He is accused of using campaign donations for personal profit. Quinn is the son of veteran strategist Richard Quinn, who owns marketing and political consulting firms. Rick Quinn, also a campaign consultant, owns a direct-mail business. The Quinns have said they keep their firms separate, but the indictments allege Rep. Quinn has an economic interest in all of them. Quinn’s father has not been charged. But the millions of dollars the Quinn firms have collected and spent on clients’ behalf have been a central part of the inquiry.

Vermont – Vt. Political Ethics Bill Moves to Governor’s Desk
Burlington Free Press – April McCullum | Published: 5/11/2017

A bill passed by Vermont lawmakers sets up a state ethics commission in 2018 with a part-time executive director that would review complaints, but would have no investigative or enforcement authority. The commission would also create a state ethics code. The bill also limits lawmakers and government officials from lobbying immediately after they leave office. Individuals who give campaign contributions to a candidate would have to wait one year before that politician’s office could consider them for a no-bid state contract over $50,000.

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.

At the 17^th Annual OMNIKAL National Business Summit at The Harvard Club in New York City on May 18, 2017, State and Federal Communications, Inc., and its President and CEO, Elizabeth Z. Bartz, were honored with a key diversity award as a Top 100 Women-Owned Business in Ohio, and are the only business in Akron, Ohio named to the list.

Each year OMNIKAL (formerly DiversityBusiness.com) collects and compiles data that results in the “Top Businesses Lists” on a state and national level. More than 2 million businesses in the United States have the opportunity to participate in the annual OMNIKAL business survey. OMNIKAL selects winning companies after reviewing each entrant’s business profile, website, and gross annual sales.

State and Federal Communications has won an “America’s Top Business” award every year since 2008.

According to OMNIKAL CEO and Founder Kenton Clarke, “These top privately-held companies are all distinguished by their progressive cultures and dynamic strategies.”

Mr. Clarke explains that OMNIKAL’s “Top American Businesses Lists” offer the most comprehensive look at the strongest and largest segment of the United States economy – America’s privately held companies. These middle market companies are recognized and respected, having truly differentiated themselves in our ever-evolving inclusive marketplace.

Ms. Bartz adds, “Being ranked highly with other leading companies across America is an achievement we are all proud of at State and Federal Communications. It shows our ongoing commitment to deliver quality government compliance information and consulting services to many companies, associations, and corporate and contract lobbyists. This award is an honor for our employees, clients, and the community where we live and work.”

Pictured are State and Federal Communications President and CEO, Elizabeth Z. Bartz; OMNIKAL CEO and Founder, Kenton Clarke; and Pinnacle Group Chairman and CEO, Nina Vaca

Founded in 1993, State and Federal Communications, Inc. provides government compliance information and consulting to Fortune 500 companies; trade, labor, and professional associations; and corporate and contract lobbyists in all 50 states. The firm’s in-house staff of attorneys is expert in state, federal, and municipal laws regarding lobbying, political contributions, and procurement lobbying. The company distributes accurate, comprehensive, and timely information which its clients rely on to maintain compliance with laws in all 50 states, the federal government, Canada, and almost 300 municipalities. For more information, visit StateandFed.com or Contact Us to learn more.

Lobbying

“Trump’s Pick for a Top Interior Post Has Sued the Agency on Behalf of Powerful California Water Interests” by Bettina Boxall for Los Angeles Times

Campaign Finance

Colorado: “Another Colorado ‘Social Welfare’ Nonprofit Just Got Fined for Improperly Playing in Elections” by Corey Hutchins for Colorado Independent

North Carolina: “Former Lawmaker Who Misspent Campaign Funds Gets 8 Months in Prison” by Anne Blythe for Raleigh News & Observer

Texas: “Pool Proposes Campaign Finance Rule Changes” by Jo Clifton for Austin Monitor

Ethics

“Deputy Attorney General Appoints Special Counsel to Oversee Probe of Russian Interference in Election” by Devlin Barrett, Sari Horwitz, and Matt Zapotosky for Washington Post

“The Right Builds an Alternative Narrative About the Crises Around Trump” by Jeremy Peters for New York Times

“What Is Obstruction of Justice? An Often-Murky Crime, Explained” by Charlie Savage for New York Times

Canada: “Trudeau Recuses Himself from Appointing New Federal Ethics Watchdog” by The Canadian Press for Toronto Star

Washington: “Seattle Ethics Panel Says No to Legal Fund for Ed Murray” by Daniel Beekman for Seattle Times

Elections

New York: “Winner of Vote for ‘I Voted’ Stickers Is Underground Art” by Andy Newman for New York Times

Gov. Terry Branstad has called a special election to fill the state House seat left vacant by the passing of state Rep. Greg Forristall.

The special election will be held Tuesday, June 27, 2017.

The winner of the special election will complete the remainder of Forristall’s term, serving through 2019.

Photo of Rep. Forristall from the Iowa House Republicans site.

Lobbying

Massachusetts: “City Council Debates Level of Transparency in Lobbying Act” by Beth Treffeisen for Spare Change News

Campaign Finance

California: “California Ethics Watchdog Nabs Its Former Leader” by Taryn Luna for Sacramento Bee

Ethics

“Comey Memo Says Trump Asked Him to End Flynn Investigation” by Michael Schmidt for New York Times

“At Mar-a-Lago, the Star Power of the Presidency Helps Charities – and Trump – Make More Money” by Drew Harwell and David Fahrenthold for Washington Post

Montana: “New Commissioner Takes Over at Political Practices Office” by Matt Volz (Associated Press) for U.S. News & World Report

New Hampshire: “N.H. Ethics Committee Has Fielded Dozens of Complaints, But Issued No Violations” by Casey McDermott for New Hampshire Public Radio

New Jersey: “‘P.S.: One of the ring leaders works in your bank!’: Is this congressman’s fundraising letter a threat?” by Amber Phillips for Washington Post

West Virginia: “State Rep. Rick Quinn Indicted by State Grand Jury” by Glenn Smith for Charleston Post & Courier

Vermont: “Vt. Political Ethics Bill Moves to Governor’s Desk” by April McCullum for Burlington Free Press

Elections

North Carolina: “Strict North Carolina Voter ID Law Thwarted After Supreme Court Rejects Case” by Adam Liptak and Michael Wines for New York Times

The Arizona Legislature adjourned the first regular session of the 53^rd Legislature sine die on May 10, 2017.

Senate Bill 1123 passed, prohibiting any person acting on behalf of a state agency from entering into a contract for lobbying services, and from spending money for any person or entity to lobby on behalf of the agency unless the person is a state employee.

The Legislature is not scheduled to convene again until early 2018.

Jeff Mangan, a former Democratic State Legislator, took over Monday as Montana’s Commissioner of Political Practices. Mangan, the fifth to hold the title in 7 years, was sworn into a six-year term taking over for former Commissioner Jonathon Motl.

Commissioner Mangan commenced work immediately, stating he would begin writing decisions on pending campaign complaints as soon as he was sworn in.

Unlike many Republican lawmakers who characterize Motl’s tenure in the Office as unfairly partisan, Mangan believes the framework established over the last four years left the office in good shape.

Elections

“Young Black Democrats, Eager to Lead from the Left, Eye Runs in 2018” by Alexander Burns for New York Times

Ethics

“Trump Revealed Highly Classified Information to Russian Foreign Minister and Ambassador” by Greg Miller and Greg Jaffe for Washington Post

“How Trump Gets His Fake News” by Shane Goldmacher for Politico

“Under Trump, Inconvenient Data Is Being Sidelined” by Juliet Eilperin for Washington Post

“Reckless Stock Trading Leaves Congress Rife with Conflicts” by Maggie Severns for Politico

Missouri: “Greitens Fails to Meet Promises on Ethics Laws” by Summer Ballentine (Associated Press) for Southeast Missourian

New York: “Joseph Ponte to Resign as New York City Jails Chief” by Michael Schwirtz and William Rashbaum for New York Times

South Carolina: “South Carolina Consulting Firm’s ‘Tentacles’ Have Created an ‘Unprecedented’ Political Power Structure” by Andy Shain, Glenn Smith, and Andrew Brown for Charleston Post and Courier

Lobbying

California: “Mayor’s Top Aide Got Married at Bayfront Estate of Developer and SoccerCity Supporter” by Kevin McDonald for San Diego Union-Tribune

Texas: “State Fraud Investigator Forced to Resign Over Ties to Iraqi Government Lobbying” by Edgar Walters for Texas Tribune

A bill introduced in the U. S. House of Representatives intends to prohibit tax exemptions under Section 501(c)(4) of the Internal Revenue Code for social welfare organizations engaged in political activity.

House Bill 2338, the 501(c)(4) Reform Act of 2017, amends the Internal Revenue Code to prohibit 501(c)(4) entities from participating in, or intervening in (including the publishing or distributing of statements), any political campaign.

Rep. Michelle Lujan Grisham introduced the legislation on May 3. The bill is currently in the House Committee on Ways and Means.

Gov. Rick Scott signed an executive order setting the dates for a special election to replace Sen. Frank Artiles. A special primary will be held on July 25, 2017, followed by a special general election on September 26.

Artiles resigned from the District 40 seat last month after calling fellow senators by racist and sexist names while having drinks at the Governors Club.

Senate District 40 is located in southwest Miami-Dade County.

Lobbying

“DOJ Deflects Calls for More Foreign Agents Act Transparency” by Kenneth Doyle for Bloomberg BNA

Kansas: “Who Are Kansas Lobbyists Taking to Dinner?” by Bryan Lowry and Kelsey Ryan for Kansas City Star

Texas: “Powerful Abbott Appointee’s Lobbying Sparks Blowback in Legislature” by Jay Root for Texas Tribune

Campaign Finance

Maryland: “FBI Searches Republican Political Consulting Firm in Annapolis” by Fenit Nirappil, Josh Hicks, and Matea Gold for Washington Post

Ethics

“Trump Warning to Comey Prompts Questions on ‘Tapes’” by Peter Baker and Michael Shear for New York Times

District of Columbia: “Bowser Cabinet Official Probed Over Child’s School Placement” by Peter Jamison for Washington Post

Florida: “Ex-Florida Congresswoman Convicted of Taking Money Meant for Charity” by Matt Stevens for New York Times

Rhode Island: “Providence Council President Charged with Embezzlement” by Jennifer Bogdan for Providence Journal

Elections

“Trump Picks Voter ID Advocate for Election Fraud Panel” by Julie Hirschfeld Davis for New York Times

Procurement

New York: “Government Watchdogs Push ‘Clean Contracting’ Reform in Albany” by Rachel Silberstein for Gotham Gazzette

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