Following a lawsuit by the Oklahoma Democratic Party, the Oklahoma Ethics Commission has voted to suspend its rules prohibiting fundraising and distribution of election materials on state-owned property. The Commission will suspend enforcement of Rules 2.6 and 2.7 until they are amended to ensure their constitutionality.

The Oklahoma Democratic Party’s lawsuit argued the new rules improperly infringed on free speech.

Ethics Commission Executive Director Lee Slater hopes the move will render the lawsuit moot.

The number of municipalities and regional governments our research associates track continues to grow. We now cover almost 300 municipalities and local governments. This is part of a continuous effort to better serve the needs of our clients.

In that effort, we have recently added another abridged jurisdiction to our website. These entries, condensed due to the limited number of relevant local laws, provide the core information our clients need for their government relations work.

The new jurisdiction is: Peoria, Illinois

Lobbying

“How Transparent Is Your State’s Lobbying Disclosure?” by Jonah Hahn for The Sunlight Foundation

Florida: “Trump, Gimenez Let Off Easy after Breaking Lobbying Law, Critics Say” by Francisco Alvarado for FloridaBulldog.org

Rhode Island: “Secretary of State Seeks Overhaul of RI Lobbying Statutes” by Jennifer McDermott for The Associated Press

Campaign Finance

“Federal Election Commission Finally Names Top Lawyer – Sort Of” by Dave Levinthal for Center for Public Integrity

“Donors Descend on Schumer and Others in Debate on Iran” by Jonathan Weisman and Nicholas Confessore for New York Times

Florida: “As Miami Beach PAC Raises Nearly $1.4 Million, Ethics Commission Investigates” by Joey Flechas for Miami Herald

Pennsylvania: “Lehigh County Eyes Pay-to-Play Legislation” by Tom Shortell for Allentown Morning Call

Procurement

Indiana: “BMV Contractor Puts 2 Employees on Administrative Leave” by Tony Cook for Indianapolis Star

South Carolina: “SCDOT Rule Requires 1-Year Wait for Employees Hired by Firms” by Seanna Adcox (Associated Press) for Albany Times Union

Elections

“It’s Not Just Trump: Voter anger fuels outsider candidates” by Philip Rucker for Washington Post

Ethics

Ohio: “Was Council Members’ Football Trip Worth More Than $250?” by Lucas Sullivan for Columbus Dispatch

The Sunlight Foundation has released a report card on lobbying disclosure in the states.

States’ grades were based on five criteria:

• If lobbyists have to report the legislation and actions they are lobbying;
• If lobbying-related expenditures are itemized;
• If all expenditures are reported or only those above a threshold limit;
• If the lobbying reports are easily accessible to the public; and
• If lobbyists have to report their compensation.

The majority of states received either B’s or C’s. Seven states, including Massachusetts, California, and New York, received the grade of A. Four states, including Florida, Oregon, and West Virginia, received a failing grade.

The full report can be viewed here.

National:

Corruption Accusations Paint Troubling Picture of Politics in Philadelphia Region
Philadelphia Inquirer – Jonathan Tamari and Chris Palmer | Published: 8/9/2015

The recent indictments of public officials on corruption charges paint a damning picture of politics in Pennsylvania and New Jersey, one that has dominated front pages with stories of wealthy campaign donors, officials using their posts for their own ends, and the alleged abuse of taxpayer dollars. Pennsylvania Attorney General Kathleen Kane, U.S. Rep. Chaka Fattah, and U.S. Sen. Robert Menendez, along with two people charged in the George Washington Bridge scandal, have all insisted they have done nothing wrong. Still, the stream of charges adds a dark chapter to two states already widely regarded as among the most corrupt in the county.

How Transparent Is Your State’s Lobbying Disclosure?
Sunlight Foundation – Jonah Hahn | Published: 8/12/2015

A review by the Sunlight Foundation of lobbyist disclosure requirements found many states fail to address the legislative flaws that create loopholes, do not provide citizens with easily accessible information, and lack stringent transparency policies. For example, the foundation said that in many states, trying to locate and view a lobbyist’s registration form is either impossible or logistically complex. In 33 states, lobbyists are not mandated to disclose their expenditures in a comprehensive fashion. The foundation ranked the states on how well each one performed on criteria such as reporting thresholds, document availability, and transparency on expenditures.

Federal:

Donors Descend on Schumer and Others in Debate on Iran
New York Times – Jonathan Weisman and Nicholas Confessore | Published: 8/12/2015

Approaching a vote on the Iran nuclear accord, tens of millions of dollars are flowing into ad campaigns and contributors leveraging access to undecided Democrats in the U.S. Senate. Donors said they did not believe any senator would vote based on threats to give or withhold money, and none admitted to giving such ultimatums. But with super PACs poised to dump tens of millions of dollars into Senate races next year, the passions of big contributors – and their ability to change a candidate’s fortunes – are a keenly felt undercurrent to the debate. Some of the biggest donors to super PACs also have strong opinions about the Iran deal and Israel’s security.

Lawrence Lessig Wants to Run for President – in a Most Unconventional Way
Washington Post – Philip Rucker | Published: 8/11/2015

Harvard professor Lawrence Lessig is launching an exploratory committee for the Democratic presidential nomination focused on his signature issue – reforming the nation’s campaign finance laws. “Jefferson’s truth, that all are created equal, has become Orwell’s meme, that some are more equal than others,” said Lessig. He said campaign finance reform is the first step toward addressing every other major issue in American politics. Lessig envisions a president that will serve with the singular goal of campaign finance reform, and step down once it is achieved to let the vice president serve out the remainder of the term. He hopes to crowd-fund $1 million by Labor Day.

New Challenge Filed to Party ‘Soft-Money’ Limits
Bloomberg BNA – Kenneth Doyle | Published: 8/4/2015

James Bopp renewed his attack on federal campaign finance law by filing suit on behalf of the Louisiana Republican Party that challenges restrictions on soft money contributions to political parties. BCRA bans soft money donations to national parties and restricts its use in federal elections by state and local parties. The limits are among the last BCRA provisions left intact following a series of court challenges to other campaign finance regulations. Last November, the Republican National Committee refused to provide an explanation when a similar case was abruptly dropped. But the move came shortly after the GOP won electoral victories that gave them majority control of both the House and Senate, and appeared to reflect a strategic shift away from such court challenges by at least some in the party.

From the States and Municipalities:

Alabama – Federal Court Upholds Alabama PAC-to-PAC Transfer Ban Law
Legal Newsline – Shaun Zinck | Published: 8/6/2015

A federal court upheld the constitutionality of Alabama’s law that bans transferring money from one PAC to another. The court found the state has a sufficiently important issue in preventing corruption or the appearance of corruption and the ban supports this interest, and the law was narrowly drawn so as to protect the state’s interest without being in violation of the First Amendment.

Florida – Trump, Gimenez Let Off Easy after Breaking Lobbying Law, Critics Say
FloridaBulldog.org – Francisco Alvarado | Published: 8/10/2015

Michael Muraswski is the advocate for the Miami-Dade Commission on Ethics and Public Trust, whose role is to prosecute people who break the county’s conflict-of-interest and ethics laws. Critics accuse Muraswski of giving a free pass to rich, powerful, and politically connected individuals who break the rules, including Donald Trump and county Mayor Carlos Gimenez.

Illinois – Illinois’ Corrupt Women
WUIS – Maureen Foertsch McKinney | Published: 8/1/2015

The term “Old Boys Network” is shorthand for the culture that breeds political corruption. A new study from the Paul Simon Public Policy Institute contends the term is gender-inaccurate. “Unsupervised, Ensnared, Relational, and Private: A Topology of Illinois’ Corrupt Women” takes a look at the women of the state who have been convicted for abusing their office. It challenges the notion that “female public officials have a deterrent effect on corruption” and examines the methods and motivations most common among female officials who have been convicted.

Michigan – Recordings: State rep asked aide to hide relationship
MLive.com – Chad Livengood | Published: 8/7/2015

Michigan Rep. Todd Courser distributed a fake e-mail that suggested he had sex with a male prostitute so he could hide his relationship with another state representative. Both lawmakers are Christian conservatives who frequently refer to their faith. Courser, a married father of four, said in an audio recording that the e-mail was intended to create a “complete smear campaign” of false claims so a public revelation about his relationship with state Rep. Cindy Gamrat would seem “mild by comparison.” The Detroit News interviews suggested the representatives used their taxpayer-funded offices to maintain and cover up their relationship.

Missouri – MEC Dismisses Complaint against Redmon
Missouri Times – Travis Zimpfer | Published: 8/11/2015

The Missouri Ethics Commission dismissed a complaint against state Rep. Craig Redmon over allegations he allowed lobbyist gifts for others to be reported as his. The commission said it found no inaccuracies in lobbyist expenditures for the past three years.  The agency said it also did not find any expenditures that should have been reported to other public officials. Redmon at first was paraphrased by The Kirksville Daily Express and later told The Associated Press that he sometimes has told people to put under his name expenses that actually were made for others. He has since denied any such action. Redmon says he misspoke and was not paying attention to questions.

Montana – Campaign Finance Rules Released, Upcoming Public Hearings
Helena Independent Record – Alexander Deedy | Published: 8/6/2015

Montana Commissioner of Political Practices Jonathan Motl is putting his proposed campaign finance regulations out for public comment. A public hearing on the proposed rules will be held in Helena on September 2 and 3. Comments may also be submitted to the commissioner’s office. Motl has said the rules would allow corporate groups to spend money in campaigns, but they must say how much they are spending, where the money came from, and what it is being spent on. Motl must approve the final regulations before October 1.

Oklahoma – Democratic Party Sues Oklahoma Ethics Commission
The Oklahoman – Rick Green | Published: 8/11/2015

Oklahoma Democratic Party is suing the state Ethics Commission over new agency rules that prohibit any fundraising or distribution of election materials on state-owned property. Party officials argued the new rules are an improper restraint on free speech. The party had to call off a fund-raising activity planned for Oklahoma City Community College on July 25 after the commission “informally indicated an intention to enforce its rules,” the lawsuit said.

Pennsylvania – Montco DA Charges Attorney General Kane
Philadelphia Inquirer – Craig McCoy, Angela Couloumbis, and Jeremy Roebuck | Published: 8/6/2015

The Montgomery County district attorney filed criminal charges against Pennsylvania Attorney General Kathleen Kane in a convoluted tale of political maneuvering and retribution that threatens the career of an official who was seen until recently as one of her state’s rising stars. Kane has been accused of illegally giving grand jury documents to a newspaper in order to embarrass a critic, and then trying to cover up her actions with false testimony to a different grand jury. Kane has admitted to leaking material, but insisted it was not covered by grand jury secrecy requirements.

Rhode Island – Secretary of State Seeks Overhaul of RI Lobbying Statutes
The Associated Press – Jennifer McDermott | Published: 8/12/2015

Secretary of State Nellie Gorbea said she has questioned whether there are people and organizations lobbying in Rhode Island without registering to do so, either because they are ignoring the law or do not know about it. Because she does not have power to investigate, Gorbea now sends educational letters to people she thinks may be lobbying based on media reports. “Without proper legal investigative processes, you’re left with trying to be fairly broad in terms of outreach,” said Gorbea. She has suggested a new lobbying statute to provide a framework for investigations and hearings, and to grant her subpoena power. Lawmakers did not pass the bill during the 2015 session.

Texas – Texas Watchdog Group Calls another Political Titan to Account
New York Times – Manny Fernandez | Published: 8/6/2015

State Attorney General Ken Paxton, former Gov. Rick Perry, and ex-U.S. House Majority Leader Tom DeLay are all Texas officials who have been indicted while in office over the past decade. They also have one other thing in common: the complaints leading to their indictments were initiated by Texans for Public Justice, the low-budget, nonprofit watchdog group that Craig McDonald runs out of a basement office in Austin. Critics dispute McDonald’s claim that Texans for Public Justice is nonpartisan, saying it has used the courts to serve as a political attack machine against Republicans.

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.

Q. I will be attending several upcoming conferences where legislators and other public officials will be present.   I’m not a registered lobbyist at the state level—do I still need to worry about gift limits?

A. Even if you are not a registered lobbyist, you will still need to be mindful of the various gift limits applicable to legislators and public officials you engage at these conferences.  Depending on your company’s status as a lobbyist employer, you may be subject to more stringent limits in certain jurisdictions.  It’s important to remember there is no one-size-fits-all approach to determining permissibility.  Each state addresses gift limits differently, and what will be permissible in one jurisdiction will not be permissible in another.   Further, you should not depend on the legislator or public official to know applicable gift limits.  Because gift limits may vary depending on your company’s status as a lobbyist employer, officials may not be aware of which limit to apply when accepting gifts and benefits.

Numerous states have gift exceptions specifically applicable to expenditures at national conferences to which all members of the legislature are invited (such as NCSL) as long as the expenditures are part of the conference agenda.  Examples of this include lunch/dinner events, or a sponsored state night.  However, for private dinners and events and other expenditures not included on the official agenda, you will still be subject to a state’s regular gift limits and restrictions.

In some cases, your expenditures on behalf of these individuals will need to be disclosed on a lobbyist employer report.  You will need to coordinate closely with your company’s government affairs or legal department to not only determine permissibility, but to determine whether the expense is reportable. For jurisdictions requiring disclosure, you may need to report the date of the expense, the name of the individual(s) receiving the benefit, a brief description, and the value of the expense.   Make sure to save itemized receipts.  Some jurisdictions require you to report the name and address of the vendor (such as a restaurant or catering company) and may additionally require you to determine the reportable amount by specific benefit received.  Some states do not permit meal expenditures to be calculated on a prorated basis (i.e., a dinner valued at $375, divided by the number of attendees) but instead require disclosure of a specific amount attributed to a particular legislative official or employee (i.e., $15.75 for the salmon entrée).

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

Enjoy these photos from recent August events.

For the second year, our summer interns have taken advantage of the Akron  Intern Edge program.  Intern Edge, a program offered by Torchbearers and Leadership Akron, serves as a conduit between interns and established community leaders, as well as organizations and groups making a positive difference in our community, to show Akron’s advantages. Each Intern Edge session offered interns access to community decision-makers and lessons for personal and professional success.

[photo left to right:  Elizabeth Scozzaro, David Jones, Sophia Avouris, Costa Janos, Nikos Frazier, and our Human Resources Director, Sharri Roper.]

Sr. Compliance Associate, James Warner, Esq. met with Janelle Snoderly during the Walmart Manufacturing Summit in Bentonville, Arkansas.

As Elizabeth Z. Bartz, State and Federal Communications, Inc., president and CEO, introduced Dr. Beverly Warren, President of Kent State University, she slipped in a selfie with Dr. Warren.

[Photograph by Nikos Frazier, Social Media Intern]

Dr. Beverly Warren enjoyed a photo opportunity with the 2015 State and Federal Communications, Inc. interns,
after presenting the keynote speech at the United Way of Summit County’s 13th Annual Power of the Purse luncheon.

Akron staff participating in the WASRG Luncheon in Washington, DC, where Federal Compliance Associate, Rebecca South, was elected 2015 President of WASRG.  Congratulations, Rebecca.

Campaign Finance

“First on CNN: Ted Cruz to release the names of his bundlers” by Theodore Schleifer for CNN

“Jeb Bush Super PAC Donors Also Spend Big To Influence Washington” by Paul Blumenthal for Huffington Post

Ohio: “State Rep. Ron Gerberry Resigns amid Investigation of Campaign Funds” by Jim Siegel for Columbus Dispatch

Oklahoma: “Democratic Party Sues Oklahoma Ethics Commission” by Rick Green for The Oklahoman

Ethics

“Will Common Cause Still Be Georgia’s Watchdog?” by Max Blau for Atlanta Magazine

Illinois: “Illinois’ Corrupt Women” by Maureen Foertsch McKinney for WUIS

Pennsylvania: “Pennsylvania Top Prosecutor Says Charges Tied to Porn Emails” by Peter Jackson (Associated Press) for Philadelphia Inquirer

Elections

“‘Little House on the Prairie’ Actress Melissa Gilbert Just Became Another Celebrity Turned Politician” by Lindsey Bever for Washington Post

“Hillary Clinton Agrees to Provide Private E-mail Server to FBI” by Carol Leonnig, Tom Hamburger, and Rosalind Helderman for Washington Post

Legislative Issues

Maine: “Maine Court: 65 bills are law after LePage misses deadline” by Alanna Durkin (Associated Press) for Lexington Herald-Leader

The state Democratic Party has filed suit in federal court against the state Ethics Commission over rules the agency adopted last year.

The Democratic Party argues the new rules, which prohibit fundraising and election material distribution on state-owned property, improperly restrain free speech and, therefore, violate the Constitution.

The party is asking the court to invalidate the rules.

A by-election for the riding of Calgary-Foothills will be held on September 3, 2015.

Former Progressive Conservative Leader Jim Prentice vacated the seat when the New Democratic Party gained control of the Legislative Assembly in the May 5 provincial election.

There are six candidates competing in the election.

The South Carolina Department of Transportation is instituting a new rule regarding employees who leave state employment to work for state contractors.

The new policy will prohibit former employees from working on new road construction projects for 365 days after leaving the department.

The department’s acting secretary says the new policy will help clarify state ethics law and ensure there is no perception of impropriety.

Ohio state Rep. Ron Gerberry is resigning from his House seat effective August 21.

His resignation comes after reports he was facing charges of campaign finance law violations. Gerberry allegedly had false information on his campaign finance filings. According to The Vindicator, he will plead guilty to the charge of “unlawful compensation.”

Gerberry has served in the Ohio Legislature for 27 years.

With still no budget agreement for the state, the Alabama Legislature adjourned its special session sine die on Tuesday, August 11, 2015. The special session had been called because there was no state budget in place at the end of the regular legislative session for the fiscal year beginning October 1, 2015. Gov. Robert Bentley is likely to call another special session to resolve the state budget issue.

Lobbying

Missouri: “MEC Dismisses Complaint against Redmon” by Travis Zimpfer for Missouri Times

Ohio: “Mills Stepping Off City Council, Ballot Amid Ethics Questions” by Lucas Sullivan for Columbus Dispatch

Campaign Finance

“Lawrence Lessig Wants to Run for President – in a Most Unconventional Way” by Philip Rucker for Washington Post

California: “Watchdog Issues Campaign Fines in Los Angeles Mayor’s Race” by Juliet Williams (Associated Press) for Miami Herald

Ethics

Connecticut: “Ganim Pushes Anti-Corruption Reforms” by Brian Lockhart for Connecticut Post

New York: “Halfmoon Ex-Supervisor Melinda Wormuth Admits to Corruption Charges” by Brendan Lyons for Albany Times Union

Oklahoma: “Oklahoma Lawmaker Resigns amid Embezzlement Investigation” by Tim Talley (Associated Press) for Albany Times Union

Virginia: “Federal Appeals Court Turns Down Former Va. Governor McDonnell, Again” by Matt Zapotosky for Washington Post

Elections

“Rick Perry’s Campaign Details a Path Forward despite Money Woes” by Philip Rucker for Washington Post