Lobby Comply will be taking a one-week break. We’ll be back on Friday, July 10, with our weekly News You Can Use Digest.

Enjoy your week!

Federal:

As Donald Trump Surges in Polls, Democrats Cheer
Washington Post – Philip Rucker | Published: 7/1/2015

With the Republican Party on a mission to woo Latino voters, one of its presidential candidates has been enmeshed for two weeks in a feud over his inflammatory comments about Mexican immigrants. “They’re bringing drugs, they’re bringing crime, they’re rapists,” Donald Trump said in his campaign announcement speech. The comments, and many more since, have prompted an uproar among Latino groups and a series of nasty break-ups between Trump and various corporate partners. His outlandish rhetoric and skill at occupying the national spotlight is also proving to be dangerously toxic for the GOP brand, which remains in the rehabilitation stage after losing the 2012 presidential race.

Bernie Sanders Doesn’t Follow the Money
Politico – Tarini Parti and Jonathan Topaz | Published: 6/28/2015

Working almost exclusively from his website, U.S. Sen. Bernie Sanders has raised about $8 million so far for his presidential campaign with an average donation of around $40. But Sanders, who has been rising fast in recent early-state polls, is missing an opportunity to capitalize on his momentum with a progressive base that has been without a standard-bearer since U.S. Sen. Elizabeth Warren declined to run. “I frankly don’t get the restraint ….,” said Harvard University professor Lawrence Lessig, adding that some think Sanders is ruining his presidential chances by not having a super PAC. Sanders faces the daunting task of finding a way to stay competitive in the Democratic primaries against one of the most potent pair of fundraisers in party history, Bill and Hillary Clinton, who are expected to count their receipts on Hillary’s behalf in the billions of dollars.

From the States and Municipalities:

Arizona – Justices Rule 5-4 That Independent Panels Can Draw Election District Lines
Washington Post – Robert Barnes | Published: 6/29/2015

The U.S. Supreme Court upheld Arizona’s congressional map, declaring the use of an independent redistricting commission that drew House district lines in the 2012 cycle did not violate the Constitution. About a dozen states have experimented with redistricting commissions that have varying degrees of independence from the state Legislatures, which ordinarily draw election maps. Justice Ruth Bader Ginsburg rejected the Arizona Legislature’s contention that it alone has power over redistricting. She said the decision by voters to turn reapportionment over to an independent commission “was in full harmony with the Constitution’s conception of the people as the font of governmental power.”

California – Ex-State Sen. Leland Yee Pleads Guilty to Racketeering in Corruption Case
Los Angeles Times – Lee Romney | Published: 7/1/2015

Former California Sen. Leland Yee pleaded guilty to a racketeering charge in an organized crime and public corruption case. He could face a maximum of 20 years in prison when he is sentenced in October. The FBI arrested Yee and 19 others in 2014 during a series of raids targeting a Bay Area organized crime ring. Yee was accused of soliciting and accepting bribes in exchange for providing help from Sacramento. The FBI also alleged that Yee, who was running for secretary of state at the time, conspired to connect an undercover agent with an international arms dealer in exchange for campaign contributions.

Florida – How Marco Rubio Turned Political Star Power into a Soaring Personal Income
Washington Post – Tom Hamburger and Sean Sullivan | Published: 6/29/2015

During his nine years in Tallahassee, as U.S. Sen. Marco Rubio rose in prominence and ascended to the state House speakership, he became increasingly well-compensated as he walked a narrow line between his work as a lawmaker and an employee of outside firms with interests before the state government. An analysis shows about 80 percent of his total income during his House tenure came from Florida law firms that lobby state and local governments. Rubio’s annual income grew from about $72,000 when he was elected to the state House in 2000 to $414,000 in 2008, when his two-year speakership ended.

Maine – Combative Maine Governor Becomes a Party of One
New York Times – Katherine Seelye | Published: 6/28/2015

In the last few weeks, Maine Gov. Paul LePage’s belligerence has surprised even his critics, and prompted some to raise the specter of impeachment. In a standoff that began with differences over tax policy, LePage has alienated just about the entire Legislature, including his fellow Republicans and onetime allies.

New York – Ex-N.Y. State Senator Gets Seven Years in Prison for Bribery
Albany Times Union – Tom Hays (Associated Press) | Published: 7/1/2015

Former New York Sen. Malcolm Smith will spend seven years in prison for a scheme to bribe his way onto the ballot for the 2013 New York City mayoral election. Smith wanted to be mayor but sought to avoid a Democratic primary. He instead decided to obtain the backing of GOP leaders in three boroughs so he could run as a Republican. Prosecutors said he authorized bribes totaling about $200,000. The five other politicians who were arrested with Smith were convicted or pleaded guilty.

New York – IG: State vendor lavished OMIG director with gifts, booze
Albany Times Union – Brendan Lyons | Published: 6/25/2015

A new report accused Joseph Flora, the former director of the New York Office of Medical Inspector General (OMIG), of improperly accepting gifts – including meals, alcohol, and a $130,000-a-year job offer – from a company that has a multimillion-dollar contract with the state. Health Management Systems (HMS) has had multiple contracts with OMIG since 2006. Flora was forced to retire from his state job in 2014 after a probe of his ties to the company. Separately, as a client of a registered lobbyist throughout the entire time period, HMS was subject to certain prohibitions on giving gifts to public officials. The Joint Commission on Public Ethics announced it had reached a settlement under which HMS would pay a $75,000 penalty.

Ohio – Lobbyist a Constant in Columbus’ Politics
Columbus Dispatch – Mark Ferenchik and Lucas Sullivan | Published: 6/28/2015

Lobbyist John Raphael has been a presence in Columbus, Ohio for almost 40 years. He has been an aide to a state senator and a member of the Columbus City Council, helped run a restaurant that was frequented by politicians, and currently represents eight clients at City Hall. And now he is at the center of a political and legal firestorm. In a plea agreement, former Redflex Chief Executive Officer Karen Finley said she passed money through Raphael and the Ohio Democratic Party to elected officials in Columbus to obtain contracts for red-light cameras. Council President Andrew Ginther, running this year to succeed Mayor Michael Coleman, has been subpoenaed in the matter, as has Coleman.

Oregon – How Much Pot Can Lawmakers Receive as a Gift? Oregon Democrat Has Some Advice
Portland Oregonian – Denis Theriault | Published: 6/30/2015

The Oregon Government Ethics Commission’s handbook for elected officials spells out a lot of rules in its section on gifts, especially when the people giving the gift have a financial interest in that official’s work. But none of those rules cover marijuana, which is legal in Oregon but not nationally. Rep. Ann Liniger offered some advice in an email to colleagues, recommending they know the value of the quantity of marijuana they are offered so as not to violate the $50 limit on gifts. But Lininger also sought to clarify her advice when asked about it by reporters. “My recommendation is that elected officials not accept gifts of cannabis,” said Linder.

Oregon – Kate Brown Signs Final Ethics Reforms, Mentions ‘Chaos and Confusion’ of Kitzhaber’s Last Days
Portland Oregonian – Denis Theriault | Published: 7/1/2015

Oregon Gov. Kate Brown signed the last of three ethics-related bills she requested after Gov. John Kitzhaber resigned amid an influence-peddling scandal. House Bill 2019 expands the Oregon Government Ethics Commission from seven members to nine, while speeding up its timelines for investigating complaints and giving legislative leaders a larger role in appointing its members. House Bill 2020 clarifies that the governor’s partner is a public officials who must join file conflict-of-interest forms. It also raises bans the governor and first partner, and all other statewide elected officials, from accepting speaking fees.

Pennsylvania – Lack of Funding for State Ethics Commission Invites Corruption, Experts Worry
Pittsburgh Tribune-Review – Kari Andren | Published: 6/27/2015

The number of staff members at the Pennsylvania Ethics Commission now stands at 17, down 30 percent from the 24 who once worked there. The commission’s funding topped 2009 levels for the first time this year at just more than $2 million. But this year’s $222,000 increase went to the bare essentials: upgrading outdated computers and software and hiring one investigator, the first hire in six years. Executive Director Rob Caruso said with its funding and staffing levels, the commission cannot fully investigate all of the 400 to 500 sworn complaints filed each year. One expert said Pennsylvania’s lack of funding for its watchdog office invites corruption.

Texas – John Wiley Price Associates Enter Guilty Pleas, Agree to Testify
Dallas Morning News – Kevin Krause and Ed Timms | Published: 6/30/2015

Two people have pleaded guilty in a federal corruption probe of Dallas County Commissioner John Wiley Price, who is accused of accepting nearly $1 million in bribes. Christian Lloyd Campbell was a consultant for Price. Campbell pleaded guilty to conspiracy to commit bribery. Price, who awaits trial on conspiracy and fraud-related counts, allegedly accepted bribes to leak confidential information to help Campbell’s clients win contracts. Gallery owner Karen Manning pleaded guilty to subscribing to a fraudulent income tax return. Prosecutors say Manning sold African art for Price in a scheme to hide his illicit profits.

Virginia – With McAuliffe in Office, Old Friends Find New Opportunities
Lexington Herald-Leader – Alan Suderman (Associated Press) | Published: 6/26/2015

After Gov. Terry McAuliffe took office in early 2014, some of his friends – who had never lobbied in Virginia before – started registering as lobbyists with several companies interested in contracting with the state. Among the companies are technology and health care businesses, including some Medicaid-related firms. McAuliffe has made expanding Medicaid a top priority for his administration. He has so far been blocked by the Republican-controlled General Assembly.

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.

Have a happy Fourth of July weekend from all of us here at State and Federal Communications.

On July 1, the maximum value for food, drink, or refreshment an individual may provide to an elected official or public employee in Louisiana for a single event increased from $58 to $60. This threshold value is adjusted each year by the Board of Ethics to reflect changes in the consumer price index.

July 3, 2015   Washington Nationals Game, Washington, DC

July 7-8, 2015   Wal-Mart Manufacturing Summit, Bentonville, Arkansas

July 12-15, 2015    CSG MLC Annual Meeting, Bismarck, North Dakota

July 13, 2015   WGR Toastmasters, Washington, DC

July 23-26, 2015   NGA Summer Meeting, Greenbrier, West Virginia

July 27, 2015   WGR Toastmasters, Washington, DC

August 4, 2015   Astellas National Women’s Executive Day, Akron, Ohio

August 3-7, 2015   NCSL Legislative Summit, Seattle, Washington

Enjoy these photos from recent June events.

BIO International Convention in Philadelphia, PA.

While at the BIO International Convention in Philadelphia, PA, Elizabeth Z Bartz connected with BIO President and
CEO Jim Greenwood[Top] and Sen. Linda Evans Parlette[Bottom] of Washington.

Akron Roundtable Luncheon with David Greene with reception afterwards at State and Federal Communications

On June 18, 2015, we invited David Greene[Top] of NPR’s Morning Edition to our office for a reception after an Akron Roundtable luncheon.  He generously spoke to many visitors from WKSU [our local NPR station] and friends of State and Federal Communications, Inc.

[photo left to right:  Amanda Rabinowitz, WKSU Reporter/Producer, and David Greene.]
[Photographs by Nikos Frazier, Social Media Intern]

State and Federal Communications employees acknowledged on their anniversary.

Elizabeth with Nola Werren, Esq., Client Specialist – 18 years.

Elizabeth with Nicolette Koozer, Sr. Graphics Coordinator – 14 years.

Elizabeth with Myra Cottrill, Esq. – 7 years.

Elizabeth with Lisa Kot, Research Assistant – 1 year.

Q. I recently became a registered lobbyist in my company’s home state.  I am also very active politically.  Are there any restrictions on my political contributions now that I am a registered lobbyist?

A. An individual’s status as a registered lobbyist can place additional restrictions and requirements on him or her related to his or her political contributions. Some jurisdictions place strict restrictions on a lobbyist’s ability to make contributions.  South Carolina prohibits registered lobbyists from making contributions to a candidate or anyone acting on behalf of a candidate if the lobbyist engages in lobbying the public office or public body for which the candidate is seeking election.  California has a similar prohibition, providing lobbyists may not contribute to a state candidate or officeholder, or their controlled committees, if registered to lobby the governmental agency for which the candidate seeks election or to which the officeholder belongs.  Other jurisdictions limit the amount a registered lobbyist can contribute compared to a nonregistered individual.  Registered legislative and executive agents in Massachusetts may contribute no more than $200 in the aggregate to any one candidate and such candidate’s committee during a calendar year.

A number of jurisdictions require reporting of lobbyist contributions.  Pennsylvania has extensive registration and reporting requirements for lobbyists who make personal political contributions, requiring them to register with the state before making a personal contribution and to file reports on the same schedule as a PAC.  Maryland’s reporting requirements are not as extensive, requiring certain political contributions to be disclosed on the lobbyist’s activity report.

When an individual becomes a registered lobbyist, he or she must review the applicable rules on his or her political contributions.  If unsure as to the requirements, please be sure to review our website at www.stateandfed.com for up-to-date information.

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.

The U.S. Chamber of Commerce is the world’s largest business federation representing 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations. More than 96 percent of U.S. Chamber members are small businesses with 100 employees or fewer.

And State and Federal Communications, Inc. is one of those businesses. More important, this week we celebrate our 22^nd anniversary. In that time, we have grown from two employees to 40 employees. We are considered as one of the companies in NE Ohio providing good professional jobs to the community.

I believe I write about our anniversary every July because it is an important one not only for us but for you, our clients, who keep us motivated every day to continue to bring you updated information about lobbying, political contributions, and procurement issues in the states and now almost 300 municipalities.

We have grown to meet your needs in government relations and public affairs. And we are not going to stop.

1.     Our goal in 2015 is to provide a lobbying interface to help you keep track of your activities for federal reports. In fact, it is almost completed, and we will begin our testing. It is quite amazing, and you will find it easier to insure accurate filing of your LD-2 and LD-203 filings.
2.     Do you know how many times I show up in the Research Department and ask for them to add cities and counties… And they always find more to include. We know you are building facilities and offering services around the country, and these small cities and counties have ordinances affecting your activity. If you are missing one, let us know and we will look it up for you.
3.     And we are growing in more ways than one. In addition to staff, we have seven people expecting babies this quarter…Yes, you heard that right. Between July 5 and August 31, we will have six new State and Federal Communications babies. It is an exciting time for the staff.

There are times I truly miss researching updates, and I do miss preparing lobbying disclosure reports (even that pesky Wisconsin form), but I do love operating this company and making sure we are providing good benefits for the staff. I am excited when I see new cars in the parking lot or when new homes are purchased. I know they are deepening roots in the community and at State and Federal Communications. And, that, my friends is a WIN WIN for all of us.

Until next month, enjoy the holiday weekend, go to a baseball game, and enjoy the summer.

Campaign Finance

“Prison Inmate Forms Super PAC” by Carrie Levine for Center for Public Integrity

“It Only Took Five Months for Billionaire GOP Donors to Set New Records” by Paul Blumenthal for Huffington Post

“House Lawmakers Seek to Reform FEC Ahead of 2016” by Cristina Marcos for The Hill

“Christie’s 2016 Finance Team Includes Big N.J. Contractors” by Matt Friedman (NJ Advance Media) for Newark Star-Ledger

Ethics

California: “Ex-State Sen. Leland Yee Pleads Guilty to Racketeering in Corruption Case” by Lee Romney for Los Angeles Times

Minnesota: “McNamara Says He’s Filing Ethics Complaint against Park Lobbyist” by Steve Brandt for Minneapolis Star Tribune

New Mexico: “High Court Rules New Mexico Investment Suits Constitutional” by The Associated Press for Lexington Herald-Leader

New York: “Ex-N.Y. State Senator Gets Seven Years in Prison for Bribery” by Tom Hays (Associated Press) for Albany Times Union

Oregon: “How Much Pot Can Lawmakers Receive as a Gift? Oregon Democrat Has Some Advice” by Denis Theriault for Portland Oregonian

Texas: “John Wiley Price Associates Enter Guilty Pleas, Agree to Testify” by Kevin Krause and Ed Timms for Dallas Morning News

Happy Canada Day!

On this date in 1867, the four provinces of Quebec, Ontario, New Brunswick, and Nova Scotia united together under the British North America Act to form the Dominion of Canada. Over the years, Canada expanded as more former British territories and holdings joined the Dominion. In 1999, the last territory to join Canada was Nunavut, which was carved out of the eastern Northwest Territories.

While most of us think of Canada as a great vacation spot or the birthplace of hockey, it is important to know how important Canada is to us.

Canada is the United States’ top trading partner. Every year, the U.S. takes in about three-quarters of Canadian merchandise exports. Canada is only behind Saudi Arabia and Venezuela when it comes to having proved oil reserves, and currently it ranks as the fifth-largest oil producer in the world.

Canada is important to the United States and U.S. businesses. This is why State and Federal Communications has an Executive Source Guide for Canadian Compliance for U.S. businesses. We want to ensure our clients are able to say “I Comply” (in English and French) when they do business in Canada.

Now, in honor of our neighbors to the north on Canada Day, here are 13 Random Facts about Canada:

1. In 1988, Canada and the U.S. signed the Canada-U.S. free trade agreement. The more famous NAFTA wasn’t signed until the 90s and took effect in 1994.
2. Quebec was originally called Lower Canada and Ontario was called Upper Canada. They were given these designations by Britain’s Canada Act. The designations of “Upper” and “Lower” were based on elevation and geographical features, not on which one appeared above the other on a map.
3. Geographically, Canada is immense. It is the second largest nation in the world, has the longest coastline of any nation in the world, and is the largest nation to share a border with only one other country. However, most of the population lives within 100 miles of the U.S. border.
4. The first transoceanic broadcast of a radio signal was received on Signal Hill, St. John’s, Newfoundland in 1901.
5. Canada is a constitutional monarchy, ruled by Queen Elizabeth II. Her representative in Canada is the Governor General. Since 1947, the governor general has had full authority to exercise the duties of the head of state, both in Canada and when abroad.
6. Canada is home to the oldest company in North America. The Hudson’s Bay Company, founded in 1670, controlled a huge area of land in Canada called Rupert’s Land and started as a fur trading company. Today, the Hudson’s Bay Company (HBC) holdings include the stores Hudson’s Bay, Lord & Taylor, Saks Fifth Avenue, and Saks Fifth Avenue OFF 5^th.
7. Canada introduced the $1 coin in 1987. With a loon on one side, it was soon nicknamed the “loonie.” Two dollar coins, or “toonies,” were introduced in 1996.
8. Newfoundland was the last province to join Canada. It was a British colony until 1949.
9. In 1918 Canadian women were granted the right to vote in federal elections.
10. Prime Minister Pierre Trudeau introduced the Official Languages Act in 1968, which declared French and English as the official languages of Canada.
11. During World War I, the Centre Block building of Parliament burned down, except for the library. A quick-thinking employee closed the doors separating the library from the rest of Centre Block, thus saving it from the fire. Centre Block was rebuilt after the war, with the addition of the Peace Tower being added to the original design. At the tower’s base is the Memorial Chamber. This chamber is dedicated to all Canadians who have served and died for their country.
12. Canada’s first official stamp cost three cents and featured a beaver.
13. In 1962, Saskatchewan became the first province to offer a public health care system in Canada.

A special thank you to George Ticoras and Becky Campbell for their help with this post.

Sources:

The World Factbook (https://www.cia.gov/library/publications/the-world-factbook)

Parks Canada – Signal Hill National Historic Site of Canada (http://www.pc.gc.ca/eng/lhn-nhs/nl/signalhill/index.aspx)

Global News (http://globalnews.ca/news/1420149/timeline-notable-dates-in-the-history-of-canada/)

Public Works and Government Sevices Canada (http://www.tpsgc-pwgsc.gc.ca/collineduparlement-parliamenthill/batir-building/centre/tour-tower/tour-tower-eng.html)

The Hudson’s Bay Company – http://www3.hbc.com/

A Brief History of Canada by Roger Riendeau, 2000

State and Federal Communications is marking 22 extraordinary years of serving our clients! Enjoy this fun video highlighting the year in review.

The Delaware General Assembly adjourned June 30, 2015, after many weeks of negotiation to pass the state’s budget.

In the early morning hours of July 1, 2015, Gov. Jack Markell signed the budget bills and a transportation funding measure, marking the end of the state’s legislative proceedings for the year.

On June 30, State & Federal Communications attended United Way’s Thirteenth Annual Power of the Purse Luncheon.  Elizabeth Bartz, the company’s president and CEO, introduced Dr. Beverly Warren, president of Kent State University and the event’s keynote speaker.  Dr. Warren gave a talk about the importance of philanthropy and the impact that women have on their community.  She gave numerous examples of women philanthropists from Kent State and around Akron.

The recipient of the 2015 Barbara Matthews Woman Philanthropist of the Year Award was Dr. Deborah Plate, a Family Practice Physician at Akron General Hospital.  Her award was presented by the 2014 recipient, Wendy Bolas.

Campaign Finance

“Big Labor Targets Steyer, Soros in Massive 2016 Fundraising Effort” by Kenneth Vogel and Brian Mahoney for Politico

“Gridlocked Elections Watchdog Goes Two Years without Top Lawyer” by Dave Levinthal for Center for Public Integrity

“What You Need to Know about Super PAC Compliance” by Brad Crate for Campaign & Elections

Ethics

“Supreme Court Won’t Hear Jailed Congressman’s Appeal” by Mike DeBonis for Washington Post

“Alan Grayson Hedge Funds Skirt Ethics Rule” by Matt Dixon for Politico

Hawaii: “Honolulu Ethics Commission Needs to Scrap Its New Anti-Media Policy” by the Editorial Board for Honolulu Civil Beat

Missouri: “FBI Asking Officials Whether Diehl Helped Consultant Get Contract” by Virginia Young for St. Louis Post-Dispatch

Elections

“Why Television Is Still King for Campaign Spending” by Derek Willis for New York Times

“Chris Christie Enters Presidential Race” by Michael Barbaro for New York Times