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

June 6-9   2016 BIO International Convention, San Francisco, CA

June 13-15   US Chamber’s America’s Small Business Summit, Washington, DC

June 20-22   Public Affairs Council National Grassroots Conference, Alexandria, VA

June 23   Public Affairs Council Digital Media and Advocacy Summit, Alexandria, VA

June 24-27   U.S. Conference of Mayors 84th Annual Meeting, Indianapolis, IN

June 28   Walmart Manufacturing Summit,  Bentonville, Arkansas

July 14-17 National Governors Association Summer Meeting, Des Moines, IA

Q. When I talk to state officials, I’m always with my registered contract lobbyists. That means I’m exempt from registering, correct?

A. The kind of exemption you are referring to is commonly called an umbrella exception. In most instances, being with a registered lobbyist does not exempt an individual from having to register as a lobbyist.

California and Utah are two states with an umbrella exception, but there are limits to those exceptions. In Utah, an individual is not considered a lobbyist (and thus does not have to register) if he or she:

Interacts with a public official in that official’s capacity as a public official while accompanied by a registered lobbyist who is lobbying in relation to the subject of the interaction or while presenting at a legislative committee meeting at the same time the registered lobbyist is attending another legislative committee meeting; and

Does not make an expenditure for, or on behalf of, a public official in relation to the interaction or during the period of interaction.

California’s umbrella exception is the most well-known, but it was narrowed in March. Now, the umbrella exception will only apply if the individual:

Is an employee of a lobbyist employer;

Meets or speaks with a state official in the company of a registered lobbyist retained by the individual’s lobbyist employer; and

Participates as a subject matter expert regarding a legislative or administrative action at issue.

California’s exception was narrowed to prevent contract lobbyists from being able to utilize the exception and avoid registration and reporting requirements.

As you can see, there are very few umbrella exceptions allowing you to avoid registration. And even when a state has an umbrella exception, there are limits on who can take advantage of them. If you will be attempting to influence a state official, be sure to give us a call prior to your meeting to make sure lobbyist registration will not be required.

You can directly submit questions for this feature, and we will select those most appropriate and answer them here. Send your questions to: marketing@stateandfed.com.

(We are always available to answer questions from clients that are specific to your needs, and we encourage you to continue to call or e-mail us with questions about your particular company or organization. As always, we will confidentially and directly provide answers or information you need.) Our replies to your questions are not legal advice. Instead, these replies represent our analysis of laws, rules, and regulations.

Last month I was honored to be included in the 16th Annual National Entrepreneurship Summit hosted by DiversityBusiness.com in New York. The award was given for being in the top 500 privately-owned women-owned businesses in the United States.

DiversityBusiness.com chooses “America’s Top Business” award recipients based on annual gross revenue and a business profile. According to event organizers, State and Federal Communications was highlighted as one of the leading entrepreneur companies in the United States, and was presented several awards at the ceremony that included being named:

• #392 of the top 500 Women Owned Businesses in the United States
• #52 of the top 100 Privately-held Businesses in Ohio
• #37 of the top Diversity Owned Businesses in Ohio
• #17 of the top 50 Women Owned Businesses in Ohio, and the only one in Akron, Ohio.

More than 1.5 million businesses in the United States participated in the 16th annual business survey conducted by DiversityBusiness.com, a web-based business publisher. The organization’s “Top Business List” offers the most comprehensive look at the strongest segment of the United States economy – America’s privately held companies. According to DiversityBusiness.com, these companies differentiate themselves in their markets through dedication and hard work that stimulates economic growth in America.

The “America’s Top Business” program is sponsored by major brands that include U.S. Postal Service, Wal-Mart, Apple, Northrop Grumman, Time Warner, Hilton, Raytheon, and Colgate Palmolive, among others.

We have won an “America’s Top Business” award every year since 2008.

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 Fortune 500 companies, associations, and corporate and contract lobbyists.

This truly is an honor because my time is always devoted to State and Federal Communications, the employees, clients, and the communities where we live and work.

For information on the event, visit: http://www.diversitybusiness.com/awardees/

In California, the Kern County Board of Supervisors approved a contract with NetFile Inc. to create a new electronic filing system for campaign finance reporting.

The new system is supposed to be more user friendly, which will increase transparency and allow the public to more easily access campaign finance data.

Electronic filing is not mandatory and the county will still accept paper filings.

Ethics

Maryland: “Mosby’s Newfound Popularity Made Her a Sought-After National Speaker in 2015” by Justin Fenton for Baltimore Sun

Michigan: “Ex-Detroit Principal Gets Year in Prison for Kickbacks” by Jennifer Chambers for Detroit News

New York: “Independent Budgeting a Little-Used Practice for City Watchdog Agencies” by Aaron Holmes for Gotham Gazette

Ohio: “Fired Convention Center Caterer Sues Managers” by Lucas Sullivan for Columbus Dispatch

Oklahoma: “Ex-Oklahoma Reserve Deputy Sentenced to 4 Years in Killing” by Justin Juozapavicius (Associated Press) for Miami Herald

Pennsylvania: “Wolf Wants Lobbyist Legislation Tied to Campaign Finance Reform” by Brad Bumsted and Mike Wereschagin for Pittsburgh Tribune-Review

Texas: “Greg Abbott, Glenn Hegar Tell State Agencies to Stop Using Leave as Severance” by Lauren McGaughy and J. David McSwane for Dallas Morning News

Elections

“Inside Democrats’ Trump-Fueled Scramble to Take Back the House” by Ed O’Keefe and Mike DeBonis for Washington Post

“Doubts Creep into Trump-Clinton Polls” by Niall Stanage for The Hill

Colorado: “Raise the Bar Wants to Make It Harder to Change Colorado’s Constitution” by Marianne Goodland for Colorado Independent

The West Virginia Legislature passed a budget bill Thursday that is being sent to Gov. Earl Ray Tomblin’s desk.

Upon the bill’s passage on the 13th day of a special session, the Legislature decided to recess the session until June 12.

The governor is expected to veto the bill. The state faces a potential government shutdown if a budget is not approved before July 1.

The California Assembly passed AB 2523 on Thursday.

The bill would limit campaign contributions to $4,200 in local governments that do not already have established campaign contribution limits. The bill includes a provision for local governments to reject the limit if local voters agree.

The bill passed 43-15 and is being sent to the Senate.

On June 22, lobbyists in Texas will be required to include previously excluded types of compensation when reporting lobbyist activity. On June 1, the Texas Ethics Commission adopted rules changing some regulations.

One regulation currently allows for compensation exceptions for purposes of calculating the threshold requiring registration as a lobbyist. Those same exceptions were also exempted from lobbyist activity reporting. Effective June 22, those exceptions for calculating the registration threshold remain, but registered lobbyists will now have to report those types of compensation.

Additionally, the Ethics Commission enacted a rule narrowing the gift exemption for permissible fact-finding trips provided to government officials and employees by lobbyists.

Mountain View City Council approved the introduction of new campaign finance rules aimed at increasing transparency.

The ordinance establishes an electronic filing system for campaign finance documents and creates new rules for independent expenditures and disclosures on political advertisements.

The ordinance is set for a second reading on June 14, 2016. If passed, the measure will become effective 30 days after adoption.

The second regular session of the 121st South Carolina General Assembly adjourned Thursday, June 2.

The Legislature is expected to return for a special session on Wednesday, June 15, and may continue in statewide session, if necessary, until not later than June 22.

Prior to adjournment, both houses were working to reach an agreement on an ethics reform bill requiring complaints against legislators to be independently investigated. Senate Judiciary Chairman Larry Martin is optimistic a compromise can pass during the upcoming special session.

Federal:

Are Members of Congress Overpaid?
The Atlantic – Nora Kelly | Published: 6/2/2016

Seventy-eight percent of the American public disapproves of lawmakers’ job performances. Thus, like any other group of poorly performing American workers, Congress probably will not get a raise next year. Lawmakers already make a hefty six figures and more than three times the U.S. median household income. But although their pay might look rich at first glance, deciding what salary the members of Congress merit is complicated by the political climate, and the potential for legislators to make a whole lot more if they were to work almost anywhere else.

Can Donald Trump Win? These Battleground Regions Will Decide
New York Times – Jonathan Martin, Alexander Burns, Trip Gabriel, and Fernanda Santos | Published: 5/29/2016

In the Republican primaries, Donald Trump proved a master of nationalizing the political debate, appealing to voters across regional lines with harangues about immigration and crime that captivated an almost uniformly white primary electorate. At the outset of the general election, Trump has dominated the day-to-day news on national television and social media. In the general election, however, his fate will be determined not by his Twitter followers or a relatively homogeneous GOP electorate, but by a set of interlocking and increasingly diverse regions that hold many of the 270 electoral votes he needs to win. And in the four regions likely to decide the presidency – Florida, the upper Southeast, the Rust Belt, and the interior West – Trump faces daunting obstacles.

Clinton’s Challenge: Become a change agent in a year shaped by voter fury
Washington Post – Philip Rucker | Published: 5/31/2016

Hillary Clinton has promised that if elected, her presidency would bring better-paying jobs, renovated schools, and repaired bridges and highways. Labor laws would toughen, student debt would decline, and health care would be more accessible. But many people do not see Clinton in that light. Her advisers are grappling with how to convince swing voters that a former secretary of state, U.S. senator, and first lady who owns a home in Washington, has cultivated deep ties to Wall Street, and has played a starring role in the political scene for a quarter-century will usher in change.

‘I Can Watch It on TV’: Excuses for Republicans skipping a Donald Trump
New York Times – Jeremy Peters | Published: 6/1/2016

Prominent Republicans have announced their intention to skip the party’s national convention in Cleveland this summer, the latest sign that Donald Trump continues to struggle in his effort to unite the party behind his candidacy. The list of those who have sent regrets includes governors and U.S. senators, almost all facing tough re-election fights this year, and lifelong party devotees who have attended every convention for decades. The coolness toward Trump amounts to a remarkable rebuke. A broad range of party leaders are openly rejecting the man who will be their nominee. And the July convention, usually a moment of public catharsis for political parties after contentious primaries, is shaping up to be another reminder of the disarray and disunity that is still rocking the GOP after a bitter fight for the nomination.

From the States and Municipalities:

Alabama – Former Ethics Director Says He Advised Hubbard of Law
Montgomery Advertiser – Brian Lyman | Published: 5/31/2016

During testimony at Alabama House Speaker Mike Hubbard’s trial on corruption charges, the retired director of the state Ethics Commission said he often cautioned Hubbard about actions that would violate state law. Prosecutors called Jim Sumner to give jurors a tutorial on the law and to try to show Hubbard willfully ignored his advice. Hubbard faces 23 felony ethics charges accusing him of using his political positions to make money and solicit work, investments, and clients from people with business before the Legislature. Prosecutors say Hubbard improperly used the “mantle of his office” to benefit his businesses and clients. Hubbard has maintained the transactions were legal and permitted under the exceptions the state ethics law provides for normal business dealings and longstanding friendships.

California – In California, Varied Election Filing Practices Reveal a System Struggling to Catch Up
Los Angeles Times – Kaitlyn Landgraf and Ana Santos | Published: 5/31/2016

California accepted the first electronic filing of a campaign statement in U.S. history in 1998. Little has changed since then. More than half of the state’s counties, most of them small and rural, do not provide online access to campaign finance records, and they say they are not likely to change any time soon. Some counties say shifting online would be too expensive given tight budgets. Others have implemented electronic filing systems, but have not made them mandatory for candidates and committees. That means it is more difficult to determine whom local donors are, how much money they raised, and for which campaigns. Counties operate independently because there is no state law requiring online filing.

California – Quizzing the Candidates Leaves a Secret Paper Trail
CALmatters – Laurel Rosenhall | Published: 5/25/2016

The document from the Service Employees International Union reads like a contract, asking candidates seeking a seat in the California Legislature to pledge support for workers organizing unions. It lists priority issues and asks if the candidate will be a “supporter,” “champion,” or “partner” as the union pursues its agenda in Sacramento. Such questionnaires are a staple of electoral politics. The surveys can help sift a field of contestants as decisions are made about how to spend campaign money. By locking potential legislators into a position before they are even elected, questionnaires may also influence policy-making in a way that excludes the public and raises ethical questions. Out of view from voters, they can create private covenants between soon-to-be public officials and the groups that will lobby them. “It’s the smoke-filled backroom of politics,” said Sen. Steve Glazer.

Colorado – Councilman Says He Will Start Drafting Changes to Denver Code of Ethics
Denver Post – Jon Murray | Published: 5/29/2016

City Councilperson Kevin Flynn said he will draft a bill to reform Denver’s ethics law. Flynn said he likely would include a proposed gift limit. It would set a maximum annual value of $250 per donor or business on gifts of meals and event tickets to officials or employees who are in a position to take action that benefits the donor. It is still unclear how strong the council’s appetite for stronger ethics rules will be. Previous councils have been resistant, but Flynn says his sense is the current council is more likely to support most of the changes under discussion.

Florida – Prison Inspectors Detail Alleged Interference in Their Investigations
Miami Herald – Mary Ellen Klas | Published: 6/1/2016

Two investigators filed a lawsuit accusing the Florida Department of Corrections of retaliating against them for alleging cover-ups, inmate abuse, and political interference on behalf of a company whose lead lobbyist became Gov. Rick Scott’s general counsel. Doug Glisson and John Ulm allege their bosses systematically tried to discredit them and set them up for demotions by concocting charges, violating agency procedures, and even forging signatures. They claim the governor’s office has wielded influence over agency investigations and point to both the governor’s former top lawyer, Pete Antonacci, and his chief inspector general, Melinda Miguel, as being involved.

Kentucky – Governor Gets 237 Derby tickets. Who Uses Them?
Louisville Courier-Journal – Tom Loftus | Published: 5/27/2016

Lobbyists, campaign donors, and state officials continued to buy prime tickets to the Kentucky Derby and Kentucky Oaks this year from the batch that Churchill Downs sets aside for sale to the governor’s group. For years, governors and Churchill Downs say the sale of so many tickets to the governor’s group is intended as an economic development tool for the state. And the list of those who got the tickets this year from the governor’s allocation shows 62 of the Millionaires’ Row seats went to guests of the state Economic Development and Tourism cabinets. But lobbying firms McCarthy Strategic Solutions and McBrayer, McGinnis, Leslie, and Kirkland each bought batches of tickets through the governor’s allotment.

Montana – Group of Republicans Call for Special Session on Campaign Finance
Helena Independent Record – Holly Michels | Published: 5/31/2016

Ten Montana lawmakers filed paperwork to ask for a special session of the Legislature to fix what the group calls “defects” in state law governing campaign contributions and close a loophole that allows for cash from PACs to flow to candidates without limit. Contribution limits put in place by Commissioner of Political Practices Jonathan Motl recently are disproportionately low to that of surrounding states, the Republican lawmakers argue in the filing. The secretary of state will send legislators a ballot to vote on if they favor a special session. If a majority of the reply affirmatively to the poll, the secretary of state will let each lawmaker know the time and day the special session will convene.

New York – De Blasio Doled Out City Appointments from Shady Spreadsheet of Big Campaign Donors
New York Daily News – Jennifer Fermino and Greg Smith | Published: 5/31/2016

Campaign donors, lobbyists doubling as bundlers, lawyers, and real estate developers were listed on a spreadsheet of 97 names from which top officials in the administration of New York City Mayor Bill de Blasio were said to have selected key appointments during his first months in office. Ultimately, at least 43 of the 97 individuals appearing on the spreadsheet accepted at least one appointment. “Confidential notes” on the list reveal the prospective candidate’s business ties, but do not highlight actual qualifications for specific appointments. They do, however, reference support for the mayor, sometimes in financial terms.

Oregon – Lobbying, Campaign Contributions Give Special Interests Clout
Hillsboro Tribune – Hillary Borrud | Published: 5/30/2016

The combination of spending on lobbying and campaign contributions is common practice for many companies and interest groups in Oregon, which has no limits on the size of political donations and expenditures. But it is difficult for the public to track the connection because the state uses separate systems to record campaign and lobbying spending. The state also does not require lobbyists to disclose if they play a role in raising campaign money. Dan Meek, co-chairperson of the Independent Party of Oregon, said he is more concerned about the lack of campaign contribution limits than lobbyist spending. “Lobbying expenses and reporting is overshadowed by campaign contributions,” Meek said. “I also think lobbyists are only as effective as the campaign contributions they can deliver.”

Pennsylvania – Investigation Puts Scrutiny on Lobbyists, Political Ties
Pittsburgh Tribune-Review – Brad Bumsted and Mike Wereschagin | Published: 5/28/2016

Approximately 900 lobbyists spent more than $500 million last year to influence lawmakers in the Pennsylvania General Assembly. Those same lawmakers pay some lobbyists, many of them their former aides, to run their election campaigns, meaning each relies on the other for millions of dollars every election cycle. Pennsylvania’s lobbying industry is under increased scrutiny as a result of a federal investigation; the probe resulted in the guilty plea of lobbyist John Estey to wire fraud. It occurs as those seeking to reform the industry push for full spending disclosure, a gift ban, and an end to lobbyists running legislative campaigns.

Texas – Texas Ethics Commission Tightens Rules on Trips Paid by Lobbyists
Austin American-Statesman – Sean Collins Walsh | Published: 6/1/2016

The Texas Ethics Commission voted to make it more difficult for lobbyists and lawmakers to take advantage of an exemption in state law that allows special interests to fund educational trips. Under the new rule, lobbyists can only pay for trips that are necessary for the official to obtain information relevant to state business; a trip must be the only way the official can obtain the information; and the outing must not be for a “merely ceremonial event or pleasure trip.” Commissioner Paul Hobby had said lobbyists asked for the increased regulation because they were being asked to pay for so many trips.

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 June 1, the New Hampshire Legislature adjourned its final full day in session. Recessed until the next call of the chair by the House and Senate, the legislative body may meet again for a veto session in the fall. When lawmakers meet to organize in December for the 2017 legislative session, the 2016 session will then be adjourned sine die.

Gov. Larry Hogan has appointed his top legislative lobbyist, Joseph M. Getty, to the Court of Appeals.

Getty has extensive policy making experience, previously serving in both the House of Delegates and Senate, but has never before worked as a judge.

The appointment is effective immediately, but Getty must still be confirmed by the Senate, which will not meet until next year’s General Assembly session.

Bernalillo County Commissioner Debbie O’Malley is requesting the county attorney investigate donations to the political action committee (PAC) New Mexicans for New Mexico, which is supporting County Commission candidates Steven Michael Quezada and Robert Chavez.

There is a $1,000 cap for contributions from people doing business with Bernalillo County, but disclosure reports reveal owners of businesses with city contracts donating to the PAC in amounts exceeding the limit.

The matter has been referred to the county’s ethics commission for further investigation.