Say hello to our team at the 2016 State and Local Government Relations Conference!

On September 22, an ordinance revising the lobbying law for the city of Austin, Texas, was approved by the City Council.

The new law repeals and replaces Chapter 4-8 of the city’s code relating to the regulation of lobbyists.

The ordinance, which was to have taken take effect on January 1, 2017, was amended before passing and will now take effect on June 1, 2017.

Gov. Dannel Malloy has summoned lawmakers back into a special session beginning Wednesday, September 28, 2016, to approve a deal with Sikorsky Aircraft.

The tentative agreement, worth $220 million in grants and tax exemptions, will keep the company in the state for the next 14 years.

Sikorsky has also committed to growing its Connecticut workforce to 8,000 individuals, and they will build nearly 200 CH-53K King Stallion heavy-lift helicopters in-state.

Photo of the Connecticut State Capitol by jglazer75 on Wikimedia Commons.

Campaign Finance

“Former Ohio Lawmaker’s Case Shows Flaws in Campaign Finance Law Enforcement” by Deirdre Shesgreen for USA Today

California: “Political Watchdog Launches Probe into California Democratic Party over Jerry Brown Donations” by Taryn Luna for Sacramento Bee

Missouri: “Candidates and Donated Campaign Cars – Practical or Unethical?” by Jason Hancock for Kansas City Star

Washington: “Labor Council to Pay $16,000 for Alleged Public-Disclosure Violations” by Joseph O’Sullivan for Seattle Times

Ethics

New York: “Ex-Cuomo Aides Charged in Federal Corruption Inquiry” by Benjamin Weiser, William Rashbaum, and Vivian Yee for New York Times

Texas: “Analysis: ‘Smitty,’ a Texas lobbyist for the small fry, retiring after 31 years” by Ross Ramsey for Texas Tribune

Elections

“Republican Lawmakers Under Fire for Racially Insensitive Comments after Charlotte Unrest” by Elise Viebeck for Washington Post

Ohio: “Federal Appeals Court Rules against Ohio Voter-Roll Purges” by Sean Sullivan and Sari Horwitz for Washington Post

State and Federal Communications, Inc. is a mile marker sponsor for the Akron Marathon held on Saturday, September 24. The dollars raised for the Akron Marathon go to the Cleveland Clinic – Akron Children’s Hospital. This marathon is also the vehicle for local Orthodox Christians to raise money for the IOCC. We proudly sponsor the IOCC in their efforts.

The dollars raised for IOCC will help provide life-saving and life-sustaining services–without discrimination–to some of the world’s most vulnerable populations in over 50 countries, including the United States, Ethiopia, and Gaza/West Bank.

Among its programming, IOCC has done the following:

• Promoted literacy and learning for underserved youth in America;
• Provided emergency relief to the people affected by the Syria conflict;
• Supported the drilling and long-term maintenance of wells in Tanzania;
• First responder after Hurricane Sandy; and
• First responder after the flooding in Baton Rouge.

The IOCC is an incredibly efficient non-profit organization that provides aide throughout the world to those in need with 97 cents of every dollar going directly to helping people.

See what’s happening in government relations this week with our Video Digest. Enjoy!

On September 22, Lisa J. Stevenson was named acting general counsel for the Federal Election Commission (FEC).

Stevenson is replacing Daniel A. Petalas, who is leaving the FEC join the Washington, D.C., law firm Garvey Schubert Barer.

Because the FEC has not been able to agree on a general counsel since 2013, the appointments have been designated as acting general counsel.

National:

Gaming the Six-Week Election Day
Bloomberg.com – Sasha Issenberg and Steven Yaccino | Published: 9/19/2016

By the constitutionally mandated first Tuesday after a Monday in November, more than one-third of Americans will have already voted for president. There are still battleground states that make no provision for early voting, but in those that do it has created a new kind of electoral arms race. Early voting is a particular gift to well-organized, well-funded campaigns, which can extend their turnout operations as long as six weeks, locking down precise factions of the electorate in domino-like fashion, and sequence their persuasion efforts with a clear view of who has yet to vote.

Some Republicans Acknowledge Leveraging Voter ID Laws for Political Gain
New York Times – Michael Wines | Published: 9/16/2016

There has been a wave of voter ID laws enacted in the last six years, mostly by Republican-controlled Legislatures whose leaders claimed that cheating at the ballot box is a routine occurrence. Yet academic studies and election-law experts broadly agree that voter fraud is not a widespread problem in American elections. Rather, they say, it is a widespread political tactic used either to create doubt about an election’s validity or to keep one’s opponents – in most cases, Democratic voters – from casting ballots. In unguarded moments, some Republican supporters of the laws have been inclined to agree.

Federal:

Court Rules against FEC in Ad Case
The Hill – Jonathan Swan | Published: 9/19/2016

A federal judge ruled the FEC must revisit whether two nonprofits’ anti-Obamacare ads were meant to influence an election, which would require the groups to disclose their backers. The judge said the FEC misinterpreted the First Amendment when it dismissed a progressive group’s complaints. Federal law requires groups to register as political committees and reveal their donors when their “major purpose” is to nominate or elect candidates. But if their major purpose is to promote “social welfare” or to educate voters on issues, they are allowed to keep their donors’ identities hidden. “This should be of concern to organizations which have been very politically active while failing to report as a political committee, relying on the FEC’s refusal to enforce the law,” said former FEC general counsel Larry Noble.

Nonprofit Seeks to Crowdfund Lobbying
The Hill – Megan Wilson | Published: 9/15/2016

A new nonprofit aims to crowdfund lobbying campaigns in order to give people a voice on K Street. Lobbyists 4 Good founder Billy DeLancey, who has worked in public affairs in both government and the private sector, said he will primarily use small-dollar donations to retain high-powered lobbyists who work on public interest issues. The idea has been in development since earlier this year, and DeLancey has already developed a working relationship with well-known law and lobby firms such as K&L Gates.

Trump Used $258,000 from His Charity to Settle Legal Problems
Washington Post – David Fahrenthold | Published: 9/20/2016

Donald Trump reportedly used $258,000 from his charitable foundation to settle lawsuits involving his for-profit businesses, potentially violating laws against nonprofit leaders using charity dollars to benefit themselves or their companies. Trump also allegedly spent $5,000 from the foundation to buy advertisements for his hotel chain and $10,000 to purchase a portrait of himself at a charity fundraiser. He had previously used $20,000 in foundation dollars to buy a different portrait of himself. If the IRS were to find Trump violated self-dealing rules, it could require him to pay a penalty taxes or reimburse the foundation.

Why Campaign Finance Laws Probably Won’t Stop Hannity and Lewandowski from Helping Trump
Washington Post – Callum Borchers | Published: 9/21/2016

Sean Hannity is one of Donald Trump’s biggest media boosters, and his aid for Trump’s presidential bid does not end with promotional on-air commentary. Hannity acknowledged he is an informal adviser to the campaign, and he appeared in a recent Trump ad. Fox News said Hannity appeared without the network’s knowledge and will not do so again. After his advisory role was reported, an FEC complaint alleged that “Mr. Hannity may be using Fox News Channel resources to offer the Trump campaign ‘suggestions on strategy and messaging,’ which would be in violation of the federal prohibition on corporate campaign contributions.” It highlights a question raised repeatedly in the 2016 election by media observers: at what point do the activities of media professionals cross the line to become illegal, in-kind corporate contributions?

From the States and Municipalities:

California – Changes Coming to San Diego Ethics Commission
San Diego Union-Tribune – David Garrick | Published: 9/20/2016

San Diego will make some changes to the city’s Ethics Commission based on recent recommendations by a grand jury, but rejected some of the panel’s key suggestions. Changes approved by the city council include a new name – the City of San Diego Fair Political Practices Commission – to more accurately reflect the agency’s duties. The council also agreed to guarantee the commission’s ongoing existence by making it part of the City Charter, which will require a public vote probably in 2018.

California – State Agency Under Fire for Pressuring Open-Government Groups It Regulates to Change Position on Legislation
Los Angeles Times – Patrick McGreevy | Published: 9/20/2016

Backers of legislation that would have increased transparency on the funding of political ads criticized the California Fair Political Practices Commission (FPPC) for heavy-handed tactics they said included pushing groups the agency has the power to investigate to drop their support for the bill. Assembly Bill 700, which died near the end of the legislative session, would have required political committees that pay for print, radio, and television ads on candidates and ballot measures to clearly identify the top financial contributors to the campaigns. The FPPC objected to late amendments it felt affected its ability to prevent donors from secretly funneling money to a campaign in amounts higher than legal limits.

Florida – Campaign-Finance Rules Won’t Be on Miami-Dade Ballot
Miami Herald – Douglas Hanks | Published: 9/20/2016

The petition drive to get new campaign finance rules before Miami-Dade voters in November officially ended when an appeals court formally overruled a judge who had ordered the package on the ballot. In reality, the legal fight ended a few days earlier when the Third District Court of Appeal declined to lift a freeze on the judge’s order, allowing Miami-Dade’s deadline for printing the ballots to pass without including the item. County commissioners had already voted against sending the measure to voters, saying the union-backed proposal had too many legal flaws to be considered. The initiative would have banned county vendors, their lobbyists, and relatives from giving to candidates for county office and lowered the contribution limit from $1,000 to $250.

Iowa – Ron Paul Aides Avoid Jail Time in Endorsement Scheme
Des Moines Register – Grant Rodgers | Published: 9/20/2016

Two top aides to former U.S. Rep. Ron Paul’s 2012 presidential bid were sentenced to probation and home confinement rather than prison for their roles in a scheme to cover up campaign payments to a former Iowa senator who agreed to endorse Paul. Although prosecutors were seeking more than two years in federal prison, Jesse Benton and John Tate were sentenced to two years’ probation and six months of home confinement, along with community service and a $10,000 fine. They were accused of conspiring to cause false campaign contribution reports to be filed with the FEC. The men have argued they broke no laws when they paid a video production company, which passed on $73,000 to former state Sen. Kent Sorenson. He dropped support for Michele Bachmann and endorsed Paul six days before the 2012 Iowa caucuses.

Missouri – Campaign Contributions Limit Amendment to Appear on Missouri Ballot
Kansas City Star – Jason Hancock | Published: 9/19/2016

A Missouri initiative to reinstate campaign contribution limits cleared its final legal hurdle to appear on the November ballot. The state Supreme Court turned down a request to hear a challenge of the proposed constitutional amendment. The proposal known as Constitutional Amendment 2 would limit contributions to candidates to $2,600 per election and cap donations to political parties at $25,000. Missouri’s previous limits were repealed in 2008. Since then, some donors routinely have given five- and six-figure checks.

New Jersey – U.S. Says for First Time That Christie Knew of Bridge Plot
Bloomberg.com – David Voreacos and Elise Young | Published: 9/19/2016

A federal prosecutor told jurors a witness will testify that New Jersey Gov. Chris Christie was told about a plan to close traffic lanes near the George Washington Bridge as the shutdown was happening, a claim he has contested for years. The trial comes three years after gridlock paralyzed a town next to the busy bridge connecting New Jersey to New York City for four days. Prosecutors said Bill Baroni and Bridget Kelly had sought political revenge against Fort Lee Mayor Mark Sokolich. Baroni was a top Christie appointee to Port Authority of New York and New Jersey. Kelly was Christie’s former chief of staff. They face counts of wire fraud, conspiracy, deprivation of civil rights, and misusing an organization receiving federal funds. Christie has denied knowing about the scheme and was not charged in the federal investigation.

Texas – Texas Ag Commissioner Sid Miller Admits to Getting ‘Jesus Shot’ but Avoids Criminal Charges
Dallas Morning News – Lauren McGaughy | Published: 9/20/2016

Texas Agriculture Commissioner Sid Miller will not face criminal charges for using taxpayer money on trips in which he competed in a rodeo and got a medical injection known as “The Jesus Shot.” The Travis County district attorney’s office decided not to prosecute Miller for abuse of power after he agreed to refund an additional $498 to the state. The decision frees him from legal trouble over the trips to Oklahoma and Mississippi in February 2015. On at least two occasions, Miller’s office withheld records about the Oklahoma trip. State law prohibits officeholders from withholding public records and from using state money or campaign funds for travel that primarily is personal in nature.

Wisconsin – An Inside Look at How Politicians Beg for Big Checks
Washington Post – Matea Gold | Published: 9/20/2016

Documents produced as part of a now-halted probe into suspected illegal campaign coordination in Wisconsin reveal in stark terms how the chase for big money by politicians has largely become a frantic pursuit of billionaires and corporate executives. Emails written in 2011 and 2012, when Gov. Scott Walker was raising funds to combat his attempted recall and that of a group of Republican state senators, expose how Walker played a leading role in securing big checks, making personal pleas to rich conservatives across the country. Among the donors Walker personally hit up was Donald Trump, who signed a check for $15,000 the day the governor visited him in April 2012.

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 joint legislative session is tentatively scheduled to begin September 28, 2016. During the session, lawmakers will focus on legislation to assist with the opioid crisis affecting the state.

Gov. Tom Wolf initially contemplated a special session earlier in the summer, but opted for the joint session instead in hopes getting legislation to his desk before the November election.

While there are several bills in the pipeline already, new legislation could be introduced as well.

Gov. Terry Branstad has scheduled a special election for Iowa Senate District 45 on December 27, 2016.

The special election will fill the vacancy created by the passing of Sen. Joe Seng.

Branstad wanted the special election to be held on the same day as the general election, but the county auditor declined the request because adding the special election would cause undue delay in delivering absentee ballots.

The first reports under the Fair Political Practices Commission’s new amended reporting requirements for “other payments to influence legislative or administrative action” are due October 31.

The third quarter report covers the period of July 1 to September 30, 2016.

Lobbyist employers and persons spending $5,000 or more to influence legislative or administrative action will need to itemize “other payments to influence legislative or administrative action” using the new Form 640.

Lobbying

New York:”Uber Gets Creative in Lobbying for Expansion into Upstate NY” by Patrick Lohmann for NewYorkUpstate.com

Campaign Finance

“Sheldon Adelson Focuses on Congressional Races, Despite Donald Trump’s Pleas” by Nicholas Confessore and Maggie Haberman for New York Times

“GOP Beat Fundraising Goal for Convention, New Filings Show” by Megan Wilson for The Hill

“Why Campaign Finance Laws Probably Won’t Stop Hannity and Lewandowski from Helping Trump” by Callum Borchers for Washington Post

California: “State Agency Under Fire for Pressuring Open-Government Groups It Regulates to Change Position on Legislation” by Patrick McGreevy for Los Angeles Times

Florida: “Campaign-Finance Rules Won’t Be on Miami-Dade Ballot” by Douglas Hanks for Miami Herald

Iowa: “Ron Paul Aides Avoid Jail Time in Endorsement Scheme” by Grant Rodgers for Des Moines Register

Missouri: “Campaign Contribution Limits Clear First Hurdle in the City” by Rachel Lippmann for KWMU

Ethics

California: “Changes Coming to San Diego Ethics Commission” by David Garrick for San Diego Union-Tribune

Texas: “Texas Ag Commissioner Sid Miller Admits to Getting ‘Jesus Shot’ but Avoids Criminal Charges” by Lauren McGaughy for Dallas Morning News

Elections

“Donald Trump Jr.’s Skittles Post on Twitter Fits a Pattern” by Jason Horowitz for New York Times

The New York City Campaign Finance Board has proposed several rule changes.

Dependent on any amendment to the proposed rules, the board aims at reducing coordination between campaigns and independent expenditure groups by adding two new factors to determine coordination between the two groups. Another proposed rule codifies an advisory opinion stating once an individual has been compensated for a service, he or she may no longer be considered a volunteer for the previously compensated service.

The entire notice of proposed rules can be found at http://www.nyccfb.info/law/rules/proposed-rules. As the public comment period is over, the board will consider feedback and likely adopt the final rules in October. The final rules are required to be published by the city clerk and would become effective 30 days from publication.

Photo of the New York City skyline by AngMoKio on Wikimedia Commons.

The New York City Campaign Finance Board has launched a new online tool to track individual contributions to participating 2017 candidates.

The visualization of individual contributions is searchable by office, candidates, geography, and filing period.

The interactive map may be found at http://maps.nyccfb.info/.