The New York City Council is scheduled to review a package of eight campaign finance reform bills on May 2, 2016. The bills seek to increase transparency and prevent lobbyists from bundling contributions to candidates.

The bills are based on recommendations made by the New York City Campaign Finance Board in their 2013 post-election report. The legislation package was introduced with the goal of having reforms made prior to the 2017 municipal election cycle.

Photo of the New York City Hall by Momos on Wikipedia.

Gov. Terry McAuliffe has set the date for a special election to replace state Sen. John Miller. The election will be held on November 8, 2016.

Miller, representing Senate District 1, died earlier this month, less than a year into his four-year term. Miller was first elected to the seat in 2007.

Photo of Gov. Terry McAuliffe courtesy of Kate Wellington in Wikimedia Commons.

State and Federal Communications is excited to be an event sponsor of the 2016 SGAC National Summit in Portland, Oregon. President and CEO Elizabeth Bartz and Client Specialist Nola Werren are attending this year’s event, which boasts the theme “Changing the Game of Advocacy.”

You can see the agenda here. You can follow the conversations on Twitter with the hashtag #NS2016.

The Honolulu Charter Commission is considering a proposal today to clarify conflict-of-interest provisions for city employees and officials. Current charter provisions prohibit employees and officials from soliciting or accepting any gift, directly or indirectly, if it can reasonably be inferred the gift is intended to influence the officer or employee in the performance of official duties. The new proposal would prohibit only those gifts intended to influence an officer or employee in the performance of official duties and benefiting the official, his or her family, or individuals or organizations with which he or she has a past, present, or future connection.

Proponents argue the proposal creates a clear standard of conduct, while opponents claim the changes would make it more difficult to enforce gift restrictions in the future. It is inherently difficult to prove the intent behind a gift or the existence of a connection with the recipient. The proposal, therefore, will likely result in individuals, namely lobbyists, avoiding penalties. Interestingly enough, several commission members are current or former lobbyists, or work for organizations employing lobbyists.

Federal:

As Campaigns Seek Delegates, Ordinary Voters Feel Sidelined
New York Times – Jeremy Peters | Published: 4/9/2016

For decades, both major parties have used a somewhat convoluted process for picking their presidential nominees, one that involves ordinary voters in only an indirect way. As Americans flock this year to outsider candidates, the kind most hindered by these rules, they are suddenly waking up to this reality. And their confusion and anger are adding another volatile element to an election being waged over questions of fairness and equality. Like with any private members-only club – political parties are not official government entities – party leaders exercise considerable control over which candidate gets their endorsement and the privilege of using their political infrastructure, financial support, and voter base, without which winning in November is all but impossible.

Big Bucks Spent Honoring Lawmakers
The Hill – Megan Wilson | Published: 4/14/2016

Although rules ban gifts to federal officials and place limits on campaign contributions, there is no cap on the amount of money that can be spent honoring lawmakers and top officials with plaques and events, nor are there limits on donations to charities and institutes that policymakers support. The so-called honorary expenses are central to the way Washington, D.C. works yet are rarely reported in the press. More than 240 of organizations shelled out $19.75 million on honorary expenses last year, according to disclosure records. The contributions were made to more than 100 different organizations, some of which have federal officials on their boards.

Inside a Consulting Giant’s Deep Roots in Clinton Land
Politico – Rachel Bade | Published: 4/13/2016

When Hillary Clinton became secretary of state, she sought out Declan Kelly to be her economic envoy to Northern Ireland. While serving as Clinton’s special envoy, reaching out to global corporations for those investments, he was also working for two of them as a private consultant. It was also during this time period that Kelly and Doug Band, a close aide to former President Bill Clinton, were preparing to launch a global consulting business. Teneo Holdings would go on to employ numerous Hillary Clinton associates, giving clients rare access to the couple and their network of world leaders. The fact that Kelly and Band were laying the groundwork for their enterprise while Kelly was working for the State Department represents a fresh illustration of the blurring of the lines between Hillary Clinton’s political network and her State Department that critics have long noted.

Puerto Rico’s Prosperous D.C. Power Couple
New York Times – Eric Lipton and Michael Corkery | Published: 4/12/2016

As Puerto Rico has spiraled toward possible bankruptcy, the island’s sole representative in Congress has seen his family wealth swell, thanks in part to Wall Street companies that have sought to capitalize on the island’s financial crisis and have hired his wife to advise them. The dual roles, those of a lawmaker and a spouse who are both involved in the financial affairs of their community, are hardly unusual in Washington, a city where power couples are increasingly common and, at times, celebrated. But legislation that Pedro Pierluisi, the resident commissioner to Congress from Puerto Rico, has introduced would benefit at least two of the companies that have hired his wife, María Elena Carrión, for financial advice.

Why Thousands of Americans Are Lining Up to Get Arrested in D.C. This Week
Rolling Stone – Ben Wofford | Published: 4/13/2016

More than 400 protesters participating in a recent sit-in on Capitol Hill were arrested and if organizers have their way, there will be more. Democracy Spring is mobilizing a week of sit-ins at the Capitol building – over 3,500 have pledged to be arrested – in what organizers hope will become a series of intensifying waves of protest meant to highlight the influence of money in politics. In an election cycle that has already seen Black Lives Matter and other protesters change the conversation among candidates, Democracy Spring is billing itself as 2016’s first full-stage activist production.

From the States and Municipalities:

Hawaii – A Cool Million Was Spent Lobbying Hawaii Lawmakers in Two Months
Honolulu Civil Beat – Nathan Eagle | Published: 4/7/2016

Nearly $1 million was spent lobbying Hawaii lawmakers during the first two months of the year, pushing the total expenditures to almost $14 million since 2013. Disclosure reports do not detail when a lobbyist had lunch with a legislator or had a private meeting to discuss a bill. The vast majority of lobbyists report spending no money. The filings do show what organizations have hired lobbyists, who they have hired, and how much they’re paying them. But even that information has its limits.

Indiana – Indy Council Approves Ethics Reforms
Indianapolis Star – Brian Eason | Published: 4/11/2016

The ethics code for the city of Indianapolis and Marion County was overhauled with new restrictions on lobbyists and tougher penalties for noncompliance. When the ethics ordinance was first approved in 2009, it set up a registry that required lobbyists to file annual disclosures. But in part because of lax reporting requirements, no enforcement actions have been taken and few gifts have been disclosed since it became effective. Now, lobbyists will have to report the value and recipient of all gifts worth $25 or more. Repeat violators would be subject to lifetime bans for themselves and the firms they represent.

Kentucky – Inside The Kentucky Firm at the Center of the FBI’s Corruption Probe
Kentucky Center for Investigative Reporting – James McNair | Published: 4/14/2016

FBI agents in March raided MC Squared Consulting’s office in Lexington. Today, visitors are greeted by a locked door and a paper sign saying “Out of town today.” MC Squared provided services to candidates, like conducting polls, setting up focus groups, developing campaign strategy, and buying ads. Although its offices were searched and employees interviewed by the FBI, MC Squared has not been accused of wrongdoing. Only one person was criminally charged the day of the raid: Tim Longmeyer, Kentucky’s former Personnel Cabinet secretary. Longmeyer is accused of taking more than $200,000 in bribes from an unnamed consulting company in exchange for sending it more than $2 million worth of market research work. Officials would not say if MC Squared is the firm mentioned in the Longmeyer complaint. But more and more, MC Squared appears to be the unnamed company.

Massachusetts – State Panel OK’s GOP’s Use of Federal Funds for Baker War Chest
Boston Globe – Frank Phillips | Published: 4/8/2016

The Office of Campaign and Political Finance (OCPF) ruled the state Republican Party can give federally raised resources to Massachusetts Governor Charlie Baker’s campaign committee. OCPF Director Michael Sullivan said federal campaign finance laws trump state law. That means a political party is free to raise donations of up to $10,000 under federal guidelines, far above the state’s $1,000 annual limits, and then use those funds to support a state campaign committee. Typically, donations raised under federal guidelines have been used to support candidates for federal, not state, office. “It’s a loophole, but an avenue that can used by both parties; this has never been brought to our attention prior to this case,” Sullivan said.

Nebraska – Nebraska Senators Fail to Vote on Lobbyist Meal Ban
Grand Island Independent; Associated Press –   | Published: 4/13/2016

State senators engaged in a brief discussion about a resolution to end lunches paid for by lobbyists and served to senators in the Nebraska Capitol. But they moved on without taking a vote, to the chagrin of the sponsor, Sen. Ernie Chambers, who plans to reintroduce it next year as a bill instead of a legislative resolution. The resolution sought to stop lobbyists from buying catered meals for lawmakers during the final weeks of the legislative session. Served in the senators’ lounge behind the chamber, the lunches cost about $10,000 last year, according to the lobbyist who organizes them. State law caps gifts to senators or their family members at $50 in value, but places no limits on food and beverages.

New York – Donald Trump and New York Tabloids Resume Their Elaborate Dance
New York Times – Michael Grynbaum | Published: 4/11/2016

As the presidential spotlight swings to New York for the state’s primary contest, Donald Trump is reuniting with the press corps he knows best, a boisterous tabloid culture that spawned and nurtured the outsize Trump personality now known the world over. It is also the ink-stained caldron in which Trump, over decades, honed the method of media management – cajoling, combating, at times dissembling – that he has unleashed, to great effect, in this year’s national campaign. Some Americans have been caught off guard by Trump’s take-no-prisoners style, but New York’s media veterans detect the old Trump playbook at work.

New York – Federal Prosecutors Cast a Wider Net in New York City Hall Inquiry
New York Times – William Rashbaum and Al Baker | Published: 4/10/2016

A federal corruption investigation examining New York City police officials, a correction union leader, and businesspeople with fundraising ties to Mayor Bill de Blasio has expanded into a probe of the mayor’s campaign fundraising, people familiar with the matter said. One of the businesspeople held a fundraiser at his home for the Campaign for One New York, a nonprofit supporting the mayor’s agenda and run by his allies, and another bundled more than $40,000 in contributions to de Blasio’s 2013 campaign. Federal investigators are interested in whether major donors to the Campaign for One New York received special treatment from de Blasio’s administration, the sourced said. The investigators are looking at whether donations were made in exchange for some kind of official act.

Tennessee – Jeremy Durham’s Office Moved Across Street after AG Probe
The Tennessean – Joel Ebert | Published: 4/8/2016

Tennessee Rep. Jeremy Durham is effectively being quarantined from lawmakers, lobbyists, and interns after the state’s attorney general determined he could pose a risk to “unsuspecting women” at the state Capitol complex. House Speaker Beth Harwell announced she is moving Durham’s office to the ground floor of a building across the street and his access to committee rooms and the House chamber will be limited to when meetings are taking place. The move comes amid an investigation into the Durham’s “pattern of conduct” toward women. Interviews with 34 current and former lawmakers, lobbyists, staffers, and interns included allegations that Durham made sexual comments and inappropriate physical contact with women working at Legislative Plaza, according to Attorney General Herbert Slatery’s memorandum to Harwell.

Washington – Legislature Gets a C- Grade from Lobbyists. That’s Actually an Improvement.
Tacoma News-Tribune – Melissa Santos | Published: 4/12/2016

According to the annual poll of lobbyists, the Washington Legislature’s overall performance in 2016 was slightly better than in any year since 2011. On a 4.0 scale, the Legislature this year earned a grade point average of 1.78, an improvement from 1.73 last year and the six-year low of 1.54 in 2013. Lobbyists docked the Legislature for its work on certain issues, especially K-12 education. Grades were lower than last year in five of eight subject areas, according to the report. Lobbyists were even more critical of Gov. Jay Inslee, giving him the lowest rating they have since he took office in 2013.

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.

The City Council heard two proposed ethics reforms at yesterday’s council meeting. An ordinance introduced to require political consultants working with Portland politicians to meet certain reporting and registration requirements was passed by the council and will go to a second reading at next week’s meeting following some minor amendments.

The other ordinance introduced to broaden revolving door prohibitions and close a loophole in registration requirements was not viewed as favorably by the council. The council will reconsider this ordinance at the May 11, 2016 council meeting.

Photo of Portland by Eric Baetscher in Wikimedia Commons.

On April 8, the Massachusetts Office of Campaign and Political Finance (OCPF) issued new regulations concerning coordination between candidates and independent expenditure-only political committees. The new regulations clarify definitions in the law for the terms “independent expenditure” and “electioneering communication” and try to “define situations in which a presumption of coordination exists between a candidate and an outside spender who is expressly advocating on the candidate’s behalf,” according to the OCPF.

The OCPF has said the regulations were created in response to frequent inquiries about the rules of coordination between candidates and other political entities.

Just days after Gov. Matt Bevin vetoed a bill to raise the executive agency lobbyist registration fee, proponents of the increase will have another bite at the apple. Lawmakers came to an agreement on the state budget in the earlier hours of Thursday morning and included a provision allowing the Executive Branch Ethics Commission to increase the fee, currently set at $125. The bill does not provide an amount for the increase.

The budget will be voted on tomorrow, April 15, the final day of the legislative session. Gov. Bevin will then have the final say as lawmakers will not have the opportunity to override any line-item vetoes.

Michigan Gov. Rick Snyder has set a date for a special election to fill Virgil Smith’s former state senate seat. Smith’s resignation became effective after beginning a 10-month jail sentence related to a shooting incident involving his ex-wife.

A primary election for the vacant 4th district seat will be held August 2, 2016. The general election is scheduled for November 8, 2016.

Signatures are being collected to put a campaign finance initiative on the Arizona state ballot this November.

The initiative, filed on April 12 by Arizonans for Clean and Accountable Elections, is in response to Senate Bill 1516, a recently passed campaign finance bill taking effect in 2017. “Our initiative addresses the most egregious parts of [Senate Bill] 1516,” said Samantha Pstross, the chairperson of committee putting forth the issue, according to the Herald Dispatch.

Senate Bill 1516 allows groups registered with the IRS as social welfare organizations to withhold disclosing donor information, removes spending caps on expenditures for political fundraisers, and allows for candidate-to-candidate transfers of campaign funds. The initiative increases disclosure of political activity, lowers contribution limits, and prevents contributions between candidates. Additionally, lobbyists would be required to disclose all meals purchased for elected officials and would be prohibited from paying travel expenses for them, according to the Herald Dispatch.

State law requires 150,000 valid signatures to have the initiative placed on the November ballot.

Lobbying

Kentucky: “Bevin’s Five Veto Actions Most in 16 Years” by Joseph Gerth for Louisville Courier-Journal

Campaign Finance

“Why Thousands of Americans Are Lining Up to Get Arrested in D.C. This Week” by Ben Wofford for Rolling Stone

Alabama: “Bentley Scandal: Influence of ‘dark money’ a key issue as governor’s funding is scrutinized” by Connor Sheets for AL.com

Ethics

“Puerto Rico’s Prosperous D.C. Power Couple” by Eric Lipton and Michael Corkery for New York Times

“Inside a Consulting Giant’s Deep Roots in Clinton Land” by Rachel Bade for Politico

Arizona: “Advocacy Group Files Ballot Measure to Combat Dark Money” by Ryan Van Velzer (Associated Press) for Hastings Tribune

Elections

“Donald Trump, American Preacher” by Jeff Sharlet for New York Times

Legislative Issues

Tennesse: “Jeremy Durham’s Office Moved Across Street after AG Probe” by Joel Ebert for The Tennessean

Washington: “Legislature Gets a C- Grade from Lobbyists. That’s Actually an Improvement.” by Melissa Santos for Tacoma News-Tribune

Ontario, Canada Premier Kathleen Wynne announced provincial legislation will be introduced in May banning corporate and union donations to political parties. The legislation will also limit contributions from individuals, limit spending for third-party advertising, and tighten political party spending and fundraising rules for by-elections.

“I believe it is important that these changes be in place or significantly underway before the June 2018 election, with initial changes legislated for Jan. 1, 2017,” iPolitics.ca reported Wynne as saying.

The City-County Council passed a proposal earlier this week to amend Indianapolis-Marion County ethics and lobbying laws. The proposal creates employment restrictions and post-employment restrictions for city-county employees and certain officials.

A current official, the deputy mayor, and any individual with appointment authority may not be employed by or work as a subcontractor for any person with a contract or arrangement with an agency. Moreover, former employees must wait one year before being employed as a lobbyist following termination of employment with the city or county.

All government contracts will require vendors to certify adherence to the employment restrictions. The proposal also adds things of value to the list of reportable lobbyist gifts and requires lobbyists to list the name of the official, appointee, or employee receiving a reportable gift. Lastly, the proposal amends penalties for lobbyists and their firms for registration, reporting, and ethics violations.

New York’s Joint Commission on Public Ethics (JCOPE) has confirmed that two commissioners have resigned from their positions. The resignations of commissioners David Arroyo and Joseph Covello were not announced publicly, but their names did not appear on JCOPE’s annual report that was recently released.

The news of these departures comes just weeks after Seth Agata was selected as the new executive director of JCOPE.