The California Legislature has been very active in the days leading up to the August 31 deadline for each house to pass bills. On August 30, Assembly Bill 700, a measure that would impose new disclosure requirements for political advertisements, failed by a single vote in the Senate.

Senate Bill 1349 had better luck gaining passage yesterday and is headed for Gov. Jerry Brown’s desk. SB 1349 will require changes to Cal-Access, California’s outdated online campaign contribution and lobbying database.

Photo of the California State Capitol by Griffin5 on Wikimedia Commons.

Lobbying

Missouri: “Audit Finds Senate Slush Fund for Lobbyist-Financed Meals” by Kurt Erickson for St. Louis Post-Dispatch

Campaign Finance

“Addicted to Making Campaign Contributions?” by Russell Berman for The Atlantic

New York: “Judge: Citizens United must disclose donor information to NY” by Larry Neumeister (Associated Press) for ABC News

Tennessee: “Feds Open Investigation of Rep. Jeremy Durham” by Stacey Barchenger, Dave Boucher, and Joel Ebert for The Tennessean

Ethics

“Hillary Clinton and Her Family’s Foundation Aren’t Likely to Get the McDonnell Treatment. Here’s Why.” by Matt Zapotosky and Rachel Weiner for Washington Post

Connecticut: “CT Supreme Court Rules in FOI Case Involving Ritter, CRRA” by Mark Pazniokas for CT Mirror

Illinois: “Chicago Insider Who Took $2 Million in Bribes in Red Light Camera Scandal Gets 10 Years in Prison” by David Kidwell (Chicago Tribune) for Los Angeles Times

Maine: “Paul LePage, Besieged Maine Governor, Hints at Resignation” by Jess Bidgood for New York Times

Nebraska: “Panel Tells Embattled Nebraska Senator to Resign by Friday” by Grant Schulte (Associated Press) for ABC News

Pennsylvania: “FBI Seeks Kenney Campaign Records as Part of Union Probe” by Jeremy Roebuck and Mark Fazlollah for Philadelphia Inquirer

On September 12, Cristina De Caprio becomes the lobbyist registrar for the city of Toronto, Ontario. De Caprio will replace Stephen Littlejohn, who served as the interim lobbyist registrar following the retirement of Linda Gehrke in the spring.

De Caprio’s duties will include implementing new additions to the lobbying law, which became effective in May. Among those newer responsibilities are the power of the registrar to impose certain conditions on new and existing registrations when a lobbyist has been found in violation of the law. The registrar also has the power to impose a temporary ban against a lobbyist found in violation of the law.

The City Council unanimously appointed Cristina De Caprio as lobbyist registrar at its July meeting.

Photo of the Toronto skyline by Christine Wagner on Wikimedia Commons.

Campaign Finance

“How One Donor Is Profiting Off the Trump and Sanders Campaigns” by Russell Berman for The Atlantic

Connecticut: “Inside the Political Fundraising Game” by Ken Dixon, Angela Carella, and Neil Vigdor for CT Post

South Dakota: “Koch Brothers-Backed Group Says Ballot Measure Could Invite Lawsuits” by Dana Ferguson for Sioux Falls Argus Leader

Virginia: “The Money Floods in When the General Assembly Gathers” by Dave Ress for The Daily Press

Ethics

“Anthony Weiner and Huma Abedin to Separate After His Latest Sexting Scandal” by Amy Chozick and Patrick Healy for New York Times

California: “State Worker Accepted 24 Pairs of Free Designer Sunglasses, Sold Boss a Pair for $20” by Taryn Luna for Sacramento Bee

Florida: “Get This Vice Mayor Angry and He Might Sue” by Monique Madan for Miami Herald

Maine: “Pressure Is Building on LePage over His Behavior” by Dennis Hoey for Portland Press Herald

Elections

“FBI is Investigating Foreign Hacks of State Election Systems” by Ellen Nakashima for Washington Post

“Democrats’ Weak Bench Undermines Hope of Taking Back Senate” by Jennifer Steinhauer for New York Times

“Breitbart Rises from Outlier to Potent Voice in Campaign” by Michael Grynbaum and John Herrman for New York Times

House Speaker Greg Stumbo has called an impromptu meeting of the House of Representatives to discuss the struggling Kentucky Retirement System and Kentucky Teachers Retirement System. Stumbo cited poor returns and high placement fees for investment managers in an email sent to all members of the House.

All members of the House are invited to the Tuesday morning meeting, but Republicans are expected to boycott. Minority Leader Jeff Hoover criticized the timing of the meeting, as it coincides with a Democratic fundraiser taking place in Frankfort.

Hoover was also puzzled by Stumbo’s sudden interest in the topic, arguing the Democrats care now only because it will be an issue in the upcoming elections.

Photo of House Speaker Greg Stumbo courtesy of the Kentucky Legislature website.

Effective September 3, 2016, city elected officials in San Francisco will be prohibited from controlling candidate controlled general purpose committees.

The goal of the new ordinance is to stop elected officials from establishing such committees to use as slush funds for unlimited contributions.

Candidates controlling candidate controlled general purpose committees will be required to return, use, or dispose of all committee funds within 90 days of taking office.

A special election for the North Dakota House of Representatives District 15 will take place on November 8, 2016.

The District 15 seat is vacant following Rep. Curt Hofstad’s recent death due to a heart attack.

Candidates for the special election will be nominated by their parties rather than through primaries.

Lobbying

Florida: “Miami-Dade Mayor Carlos Gimenez’s Son Rose to the Top Skirting Lobbying Rules, Critics Say” by Francisco Alvarado for FloridaBulldog.org

Hawaii: “Just 2 Lobbyists Have Donated $650k to Hawaii Candidates in the Past 10 Years” by Jaelynn Grisso for Honolulu Civil Beat

Pennsylvania: “State Not Tracking Lobbying by Marijuana Companies” by Scott Kraus for Allentown Morning Call

Campaign Finance

Arizona: “State Regulator Subpoenas Utility Companies’ Campaign Spending Records” by Howard Fischer (Capitol Media Services) for Arizona Daily Star

Ethics

“Ethicists Scoff at Clinton Foundation Transition Plan” by Katy O’Donnell for Politico

Florida: “Florida Newspaper Kills Story of Local Official Allegedly Seeking Favors from Developer” by Marc Caputo for Politico

Maryland: “Anne Arundel Ethics Commission Executive Director Dies” by Amanda Yeager for Capital Gazette

New York: “Ken Thompson, Brooklyn District Attorney, Is Fined for Misusing Funds on Meals” by J. David Goodman and Alan Feuer for New York Times

Elections

California: “Legislature OKs Selfies at the Ballot Box” by Anshu Siripurapu for Sacramento Bee

Legislative Issues

California: “In California’s Democrat-Dominated Capitol, It’s Senate vs. Assembly” by Alexei Koseff for Sacramento Bee

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

National:

Inside Facebook’s (Totally Insane, Unintentionally Gigantic, Hyperpartisan) Political-Media Machine
New York Times Magazine – John Herrman | Published: 8/24/2016

Facebook, in the years leading up to this year’s election, has not just become nearly ubiquitous among American internet users; it has centralized online news consumption in an unprecedented way. According to the company, its site is used by more than 200 million people in the U.S. each month. A 2016 Pew study found 44 percent of Americans read or watch news on Facebook. Its algorithms pick text, photos, and video produced and posted by established media organizations large and small, local and national, openly partisan or nominally unbiased. But there is also a new and distinctive sort of operation that has become hard to miss: political news and advocacy pages made specifically for Facebook, uniquely positioned and cleverly engineered to reach audiences exclusively in the context of the news feed.

Study: Outside groups, secret money far more prominent than ever before
Center for Responsive Politics – Robert Maguire | Published: 8/24/2016

A new study shows outside groups that can raise and spend unlimited money, sometimes without disclosing the sources of their funds, make up a larger portion of election spending than at any point in the last 16 years. The two main proponents of the growth in outside groups’ overall share of election advertising are super PACs and politically active nonprofits. The former only came into existence in 2010, and since then has come to dominate the field. Politically active nonprofits, on the other hand, have been active in every cycle going back to 2000, but what may be the same in quality is not the same in quantity. These groups are the driving force behind the growth in “dark money” in elections.

Federal:

Foundation Ties Bedevil Hillary Clinton’s Presidential Campaign
New York Times – Amy Chozick and Steve Eder | Published: 8/20/2016

The Bill, Hillary and Chelsea Clinton Foundation has thrived on the generosity of foreign donors who gave hundreds of millions of dollars to the charity. But as Hillary Clinton seeks the White House, the funding has become an Achilles’ heel for her campaign and, if she is victorious, potentially her administration. With Mrs. Clinton facing accusations of favoritism toward foundation donors during her time as secretary of state, the organization will no longer accept corporate contributions should she win in November. But while the move did not resolve the question of how her administration would handle longtime donors seeking help from the U.S., or whose interests might conflict with the country’s own.

The Lobbying Law at the Center of Manafort’s Trouble with Ukraine
The Hill – Megan Wilson | Published: 8/21/2016

Paul Manafort resigned as Donald Trump’s campaign chairperson after he had been ensnared in a wide-ranging Justice Department investigation about U.S. connections to the alleged corruption by former Ukrainian President Viktor Yanukovych. Questions have been swirling about Manafort’s representation of Yanukovych for years, but recent reports have intensified the drum beats about whether he acted unlawfully as a “foreign agent” by lobbying for a foreign leader without registering that activity. The recent revelations, if true, suggest Manafort could face legal troubles stemming from violation of a World War II-era lobbying statute, the Foreign Agents Registration Act.

From the States and Municipalities:

California – Little-Regulated Accounts Offer a Path to Political Clout in Sacramento
Marin Independent Journal – Jessica Calefati and Kaitlyn Landgraf (Bay Area News Group) | Published: 8/20/2016

Ballot measure committees, the accounts that are supposed to promote or oppose state and local initiatives, are in practice paying for California lawmakers’ consultants and polling firms, new suits, and trips to Mexico. And the money for the politicians’ perks comes in the form of five-figure donations from the same special interests that state rules were intended to curtail. Under the vague language of the law, elected officials can legally operate these committees, but the way they are doing it appears to bend state laws and rules governing how the money may be spent. No state agency adequately monitors the situation. Of the nearly $3 million spent by these committees since 2013, only one dollar out of every four dollars was used to help pass or defeat measures that actually made it to the ballot.

Connecticut – Malloy Releases Funds Withheld from CT Watchdog Agencies
CT Mirror – Keith Phaneuf | Published: 8/19/2016

After criticism from lawmakers and good government groups, Connecticut Gov. Dannel Malloy’s administration relented and restored the $183,000 they had proposed to cut from three watchdog agencies. Following a meeting with the heads of the Office of State Ethics, Freedom of Information Commission, and State Elections Enforcement Commission, the Office of Policy and Management announced it would restore the funding. Office of Policy and Management Secretary Ben Barnes steered clear of acknowledging the budget holdbacks would have violated a 2004 law that prohibits the executive branch from unilaterally cutting the three watchdog agencies. Carol Carson, executive director of the Office of State Ethics, said the agencies are committed to prudently managing their budgets and whenever possible return money at the end of the year to the general fund.

Florida – On 2nd Try, Miami-Dade Commissioners Approve Petition Count
Miami Herald – Douglas Hanks | Published: 8/22/2016

Miami-Dade County commissioners agreed to start counting nearly 130,000 signatures tied to a proposed ballot measure on new campaign finance rules, but warned they still might halt the proposal over concerns raised by county attorneys. Only about 52,000 valid signatures are needed to win a spot on the November ballot. The proposed rules would impose a broad package of restrictions against campaign donations by vendors and lobbyists, prime sources of financial support for county officeholders.

Massachusetts – Donors Behind Charter Push Keep to the Shadows
Boston Globe – Mark Levenson | Published: 8/20/2016

A new $2.3 million ad boosting the expansion of charter schools in Massachusetts lists the campaign’s top five donors on screen, in accordance with state law. But the bland names, including Strong Economy for Growth and Education Reform Now Advocacy, give no hint of who is writing the checks. Four of the five donors to the pro-charter committee are nonprofit groups that do not, under state law, have to disclose their funders, allowing the individuals backing the effort to remain anonymous. The cloak of secrecy surrounding the financing of what could be the most expensive ballot campaign in state history has frustrated election officials and underscored the proliferation of untraceable money in political races across the country.

Missouri – Judge Tosses Out Effort to Keep Missouri Campaign Contribution Limits Off Ballot
St. Louis Post-Dispatch – Kurt Erickson | Published: 8/25/2016

Cole County Circuit Court Judge Patricia Joyce rejected an attempt to remove a voter initiative from the November 8 ballot that would impose limits on campaign contributions in Missouri for the first time since 2008. Attorney Chuck Hatfield said in court that the initiative unfairly limits some classes of businesses and associations from giving money to campaigns, but Joyce ruled the proposal mirrors federal law and is not unconstitutional. The decision will be appealed.

New York – Cuomo Signs Ethics Bill, with Few Cheers
Albany Times Union – Chris Bragg | Published: 8/24/2016

New York Gov. Andrew Cuomo signed legislation that reforms the state’s lobbying, ethics, and campaign finance laws. But watchdog groups criticized the bill for what they say is a failure to address conditions that have fueled some of Albany’s corruption cases in recent years. The new law includes restrictions on independent expenditure groups intended to reduce coordination with a candidate’s campaign. Another provision requires issue-oriented lobbying groups, designated as 501(c)(4) organizations, that spend more than $15,000 in a year on lobbying to disclose donors who give more than $2,500. The previous limits had been $50,000 and $5,000.

New York – NY State Ethics Watchdog Investigating Nonprofit with Ties to Large Corporate Political Donor
Nonprofit Quarterly – Larry Kaplan | Published: 8/23/2016

The New York Joint Commission on Public Ethics is looking into the nonprofit Pledge 2 Protect, created in 2013 to fight a marine waste transfer station on Manhattan’s Upper East Side. By law, nonprofits like Pledge 2 Protect must, if they spend more than $50,000 on lobbying, report the names of donors who contribute more than $5,000. Those amounts would be cut in half under a law awaiting Gov. Andrew Cuomo’s signature. Almost $700,000 made its way to Pledge 2 Protect the year it was formed with no indication of where the money really came from. The money was given first to a law firm, then to the group, so the only name that had to be disclosed was that of the law firm, not the actual donors. Among the opponents of the waste transfer station was Glenwood Management, a real estate firm that figured prominently in the corruption case against former Assembly Speaker Sheldon Silver.

Tennessee – Power Opens Door to Sexual Harassment
The Tennessean – Dave Boucher and Joel Ebert | Published: 8/21/2016

Powerful institutions and harassment at times go hand-in-hand. State Capitols are sometimes hotbeds of sexual harassment themselves. Most Legislatures are largely male, part-time, and require members to travel away from home, creating a fraternity atmosphere. In Tennessee, where 22 out of 132 lawmakers are women and 85 percent are white, the political culture has included limited policies and safeguards, leaving women with few options.

Wisconsin – Ethics Commission Will Be Able to Make Political Donations
Minneapolis Star Tribune – Scott Bauer (Associated Press) | Published: 8/23/2016

Members of the Wisconsin Ethics Commission will be able to make political donations. The commission voted to continue with the current practice allowing them to give to candidates and campaign committees. Nothing in state law bars Ethics Commission members from donating to the very politicians they are regulating. Commission members are partisan appointees, unlike their predecessors on the Government Accountability Board who were judges and prohibited under the law from donating.

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.

On August 24, 2016, Betsy Kraus Dawson, executive director of the Anne Arundel County Ethics Commission, passed away from cancer at the age of 65.

Dawson served as the executive director for 20 years.

On an undetermined date, a new executive director will be appointed by members of the commission.

Premier Brian Pallister announced the appointment of Andrew Micklefield, Member of the Legislative Assembly for Rossmere, as the government’s new house leader.

Micklefield was preceded by Health Minister Kelvin Goertzen, who held the position as house leader for a decade.

The formal swearing-in ceremony for Micklefield has yet to been determined.

On August 18,  District of Columbia Mayor Muriel Bowser returned an unsigned bill to reform the District’s procurement processes signaling that it can become effective without her signature. On August 24, the legislation was sent to Congress for the 30-day congressional review period needed for enactment. The bill will make procedural changes and establish the Office of the Ombudsman for Contracting and Procurement.

As introduced, the bill had a pay-to-play provision that banned campaign contributors from bidding on contracts over $100,000 for a year after making a donation to a District candidate. The pay-to-play provision was defeated in a council vote and is not part of the final bill.

The new school year has arrived and State and Federal Communications is proud to support United Way of Summit County’s Stuff the Bus program to make sure all children in the Akron Public Schools have the supplies they need! We had a wonderful time gathering a mountain of crayons, markers and notebook paper.

Thank you United Way for everything you do to make our community thrive.