Federal:

Bill Shuster Admits ‘Private and Personal Relationship’ with Airline Lobbyist
Politico – John Bresnahan, Anna Palmer, and Jake Sherman | Published: 4/16/2015

U.S. Rep. Bill Shuster (R-Pa.), chairperson of the House Transportation Committee, admitted he has a “close private and personal relationship” with a female lobbyist for an airline association whose job is to influence his panel. Shuster acknowledged he has been dating Shelley Rubino, vice president of government affairs for Airlines for America, while the committee he leads has been working to overhaul the Federal Aviation Administration. The House Ethics Manual does not address lobbying by romantic partners but does urge “special caution” when a spouse or other immediate family member is a lobbyist. Shuster said his office consulted with legal counsel to establish its own internal policy on personal relationships that “goes further than required by law.”

House Quietly Passes Tax Exemption for Megadonors
Politico – Kenneth Vogel and Hillary Flynn | Published: 4/16/2015

The U.S. House passed legislation that would protect major campaign donors from having to pay gift taxes on huge contributions to secretive political groups. The bill, which now heads to the Senate, is seen by fundraising operatives as removing one of the few remaining potential obstacles to unfettered big-money spending by nonprofit groups registered under a section of the tax code that allows them to shield their donors’ identities. While fundraising operatives say most donors do not pay taxes on their contributions to 501(c) groups, the law is somewhat ambiguous on whether gift taxes could be assessed. That has left donors fearing such gifts could bring scrutiny from the IRS.

Jeb Bush Prepares to Give Traditional Campaign a Makeover
AP.org – Thomas Beaumont | Published: 4/21/2015

A report that Jeb Bush will delegate much of his presidential campaign’s work to a super PAC is prompting criticism from reform advocates and the threat of legal action. Bush has spent months developing a plan to give Right to Rise the authority to run activities such as advertising, phone banking, and data analysis for his campaign. Such groups can raise unlimited money to participate in campaigns but legally are not supposed to coordinate with a candidate’s operations. While super PACs have played major roles in campaigns before, supporting candidates who have fallen out of favor with voters, they have never served as the overt drivers of a candidate’s campaign operations, said Bill Allison, a senior fellow at the Sunlight Foundation.

From the States and Municipalities:

Arizona – Ariz. Court: Groups can’t conceal attack-ad funding sources
East Valley Tribune – Howard Fischer (Capitol Media Services) | Published: 4/21/2015

The Arizona Supreme Court refused to overturn an appeals court ruling against a political group that spent about $1.5 million during the state’s 2010 attorney general race. The high court left in place the ruling that found a television commercial by the Committee for Justice and Fairness advocated for the defeat of then-candidate Tom Horne and was not exempt issue advocacy. The association claimed its ad confronted issues of child safety. But the appellate court said – and now the state Supreme Court has agreed – that any commercial or mailer must be examined in its entirety, including its timing, to determine its real purpose.

Arkansas – 30-Day Grace Vexes State’s Ethics Panel
Arkansas Online – Michael Wickline | Published: 4/18/2015

The Arkansas Ethics Commission discussed new laws that came out of this year’s legislative session, including one that gives elected officials a 30-day grace period to return improper gifts from lobbyists and correct reporting errors. Commissioners asked Executive Director Graham Sloan a number of questions about Act 1280, which allows a state elected official to avoid sanctions if the official unwittingly receives an improper gift from a lobbyist and returns it, or pays the donor an amount equal to or greater than the value of the gift, within 30 days of the discovery of the violation.

California – Drinks, Dinners, Favors Helped PG&E Lobbyist Build PUC Ties, Emails Show
Los Angeles Times – Marc Lifsher | Published: 4/21/2015

After many complaints about ties between the California Public Utilities Commission (PUC) and Pacific Gas & Electric (PG&E), the state’s largest utility fired its chief lobbyist, Brian Cherry, his boss, and another vice president. PG&E also released a flood of documents that has sparked the biggest investigation of a state agency in the last decade. The documents, including emails between the utility and regulators, portrayed questionably cozy relations between then-PUC President Michael Peevey and top PG&E executives. “Cherry’s job was to know everybody and be on good terms with everybody,” said John Geesman, former executive director of the California Energy Commission. “You make friends so that your friends could help you.”

Florida – Even after the Gift Ban and Reform, Freebies Flow to Florida Lawmakers
Tampa Bay Times – Michael Van Sickler | Published: 4/17/2015

Powerful Florida lawmakers in both parties still get special interests to cover personal expenses, even after the gift ban and a subsequent reform in 2013. Committees set up by some legislators are legally allowed to reimburse their host lawmakers for expenses, as long as they can show it is related to the political mission of their committees. But a review of 84 committees operated by 75 state legislators show a handful of politicians routinely used their committees for reimbursements that could not easily be explained.

Kansas – Kobach PAC Embroiled in Naming-Law Issue; ‘Stupid’ PAC Gets Letter from Ethics Panel
Wichita Eagle – Dion Lefler | Published: 4/22/2015

A new PAC in Kansas filed to organize under the name “It’s Time to Fix Stupid.” They got a letter from the state Governmental Ethics Commission saying: “The name of your political action committee, It’s time to fix stupid, must be changed or expanded upon to more clearly reflect your interest.” KCTU news director R.J. Dickens, chairperson and treasurer of the PAC, said the name is directly reflective of what the group wants to do. It bought a website, itstimetofixstupid.com, and plans to use it to hold a “Stupid Tuesday” primary in August to identify what are deemed to be the stupidest state legislators and to direct campaign donations to those lawmakers’ opponents.

Kentucky – Head of State Ethics Agency to Take Top Post at Kentucky Registry of Election Finance
Lexington Herald-Leader – Jack Brammer | Published: 4/20/2015

John Steffen, executive director of the Kentucky Executive Branch Ethics Commission, is leaving the post to become head of the state Registry of Election Finance. Steffen will replace Sarah Jackson, who retired from the registry last fall. During his seven years as executive director, Steffen has been involved in several widely publicized cases, including investigations of former Agriculture Commissioner Richie Farmer, the state Fish and Wildlife Department, nepotism involving property valuation administrators, and the state merit hiring system.

Missouri – Resignations after Election of Black Mayor Put Missouri Hamlet in Spotlight
New York Times – John Eligon | Published: 4/23/2015

Before being sworn in to office on April 14, Tyus Byrd never could have imagined the national headlines she would grab as the first black mayor of Parma, Missouri. Upon her taking office, several employees of the rural hamlet, including the chief of police and two full-time police officers, resigned. All are white. Adding to the intrigue was that the man whom Byrd defeated, Randall Ramsey, mayor for more than three and a half decades during two separate stints, offered a cryptic reason for the resignations: “safety concerns.” With the nation roiled in a debate over law enforcement in minority communities, many Internet commenters wondered whether this was all about race. Many residents seem to believe what happened was because of tensions between an old government and the new one, not between the races.

Montana – Bullock Signs Campaign Finance Bill into Law
The Missoulian – Lisa Baumann (Associated Press) | Published: 4/23/2015

Montana Gov. Steve Bullock signed a bill into law that is meant to expose “dark money” in elections. Senate Bill 289 will require groups that spend money on elections at the state level to disclose their donors, including those that have been previously exempt from the practice. Organizations have been able to skirt laws requiring disclosure if their purpose and federal tax designation categorizes the group as dedicated to education or advocacy.

New York – Carl Heastie, New York Assembly Speaker, Benefited from Mother’s Embezzling
New York Times – Russ Buettner and David Chen | Published: 4/20/2015

The New York Times reported that Assembly Speaker Carl Heastie appears to have benefited from his mother’s past embezzlement. Heastie’s mother in 1998 pleaded guilty to writing checks from the nonprofit where she worked, using some of the money to buy a family home. As part of her restitution, she and her son, who also lived in the home, were to sell it and pay back the former employer. Heastie’s mother died shortly after her plea. Heastie did not sell the apartment until six years later, and pocketed a $200,000 profit, according to the report.

New York – New York State Elections Board Retains a Corporate Donation Loophole
New York Times – Jesse McKinley | Published: 4/16/2015

New York’s State Board of Elections split along party lines on closing the so-called LLC loophole in campaign finance rules, leaving it intact. Two commissioners proposed treating limited liability companies like partnerships, subject to more complete disclosures and donation restrictions. That would reverse the board’s 1996 decision. The board now treats LLCs as individuals, who can give up to $60,800 to a statewide candidate. Corporations, meanwhile, have much lower limits. Reform advocates say certain wealthy individuals use LLCs to hide their identities and donate large amounts to politicians in support of particular causes or interests.

Rhode Island – Campaign Finance Measures Sent to Governor
Providence Journal – Jennifer Bogdan | Published: 4/16/2015

The Rhode Island General Assembly approved a series of bills to tighten campaign finance reporting. If signed into law, the measures will require candidates and PACs to create a separate bank account for campaign funds and file bank statements for it with the state elections board. Candidates also could not serve as their own campaign treasurers if their accounts reach or expend $10,000 or more annually.

Virginia – Legislature Approves Ethics Bill with $100 Aggregate Gift Cap
Richmond Times-Dispatch – Jim Nolan and Markus Schmidt | Published: 4/17/2015

Virginia lawmakers gave final approval to an ethics reform package that includes an aggregate $100 annual cap on gifts. Legislation that passed at the close of the regular session would have meant officials could receive an unlimited number of gifts from the same source as long as none exceeded $100. Gov. Terry McAuliffe sought to close the loophole and put in place an aggregate $100 annual cap on gifts from a single source. But it got bogged down when it was discovered the language of the governor’s amendment could be interpreted to be a lifetime limit, rather than an annual one. Lawmakers returned to Richmond for an abbreviated session to resolve the issues with the bill.

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 Office of the Secretary of State has given notice of a special election for state House District 55. The election will be held on June 16, 2015, with a runoff election on July 14, 2015, if needed.

The vacancy was created by the April 9th resignation of Tyrone Brooks, the same day he pleaded no contest in federal court to five counts of mail and wire fraud and guilty to one count filing false tax returns.

Brooks was indicted in 2013 after prosecutors claimed he used nearly $1 million worth of donations meant for charities to pay personal and family expenses.

The Legislature formally adjourned sine die on April 22, 2015, but with the possibility of a special session later this year.

Gov. Asa Hutchinson has indicated he will likely call legislators back to address the state’s Medicaid expansion.

A legislative task force is expected to issue a recommendation for an alternative program to the state’s private option Medicaid expansion.

Photo of the Arkansas State Capitol by jglazer75 on Wikimedia Commons.

Lobbying

“The Very Simple Reason More Money Is Spent on Lobbyists than on Congress” by Philip Bump for Washington Post

“Drinks, Dinners, Favors Helped PG&E Lobbyist Build PUC Ties, Emails Show” by Marc Lifsher for Los Angeles Times

Campaign Finance

“Jeb Bush Prepares to Give Traditional Campaign a Makeover” by Thomas Beaumont for AP.org

“Feds Face New Pressure on Corporate Giving” by Lydia Wheeler for The Hill

“Ariz. Court: Groups can’t conceal attack-ad funding sources” by Howard Fischer (Capitol Media Services) for East Valley Tribune

“Kansas to New Political Group: Fix your ‘stupid’ name” by Dion Lefler for Wichita Eagle

“Gov. Signs Campaign Finance Bill into Law” by Lisa Baumann (Associated Press) for Flathead Beacon

“Campaign Finance Reform: Kate Brown urges lawmakers to pass donation limits” by Denis Theriault for Portland Oregonian

“Ethics Board Looks to Strengthen City Campaign Finance Laws” by Claudia Vargas for Philadelphia Inquirer

Ethics

“Free Golf Tickets OK’d by Legislative Ethics Board” by Chad Sokol (Murrow News Service) for Spokane Spokesman-Review

Today Montana Gov. Steve Bullock signed a broad campaign finance bill into law.

Among the changes in Senate Bill 289, known as the Disclose Montana Act, are new disclosure requirements for committees making independent expenditures, a prohibition on unions making contributions to candidates, and the revision of the definitions for contribution, expenditure, and political committee.

The bill takes effect on October 1, 2015.

We are excited to be a Gold Sponsor of the Public Affairs Council Spring Executive Meeting 2015 this week in Washington, D.C.!

The Washington State Legislature appears to be headed to a special session if state lawmakers cannot come to an agreement on the state budget before April 26, 2015, the session deadline set by the state constitution.

The source of the disagreement stems from public school funding in light of recent state Supreme Court case McCleary v. State of Washington, where the Court mandated a new funding scheme for public schools by the end of the 2015 legislative session.

Gov. Jay Inslee acknowledged the need for a special session but indicated details have not been discussed.

Photo of the Washington State Capitol by Nikopoley on Wikimedia Commons.

It was a big day for the United Way of Summit County and State and Federal Communications had a big presence at the event. Many of our team were there to celebrate another record-breaking campaign. Elizabeth Bartz, our president and CEO was among the Board Members being honored as they finish their 6 years of amazing service, and she addressed the crowd on their behalf.

For the seventh year in a row, State and Federal Communications received an award for “Highest Per Employee Corporate Giving” in the category of 49 and fewer employees. We love the United Way of Summit County and look forward to more opportunities to Live United!

Lobbying

“What We Get Wrong about Lobbying and Corruption” by Lee Drutman for Washington Post

“Lobbyists Slow to Cash in on Republican-Led Congress” by Megan Wilson for The Hill

Campaign Finance

“Campaign Finance System Is Broken Says GOP Super-Lawyer Jim Bopp” by Michael Beckel for Center for Public Integrity

Kansas: “Ex-Lawmaker Sentenced to 18 Months in Jail for Bank Fraud” by Nicholas Clayton (Associated Press) for Kansas City Star

Ethics

“Storm Gathers around Clinton Finances” by Niall Stanage for The Hill

Illinois: “Judge Says Berrios Doesn’t Have to Pay $10,000 Ethics Fine” by Hal Dardick for Chicago Tribune

Montana: “Montana Senate Committee Tables Confirmation of Political Practices Commissioner” by Charles Johnson for The Missoulian

Texas: “Texas House OKs Change in Investigating Public Corruption” by Eva Ruth Moravec (Associated Press) for Lubbock Avalanche-Journal

Virginia: “Ex-Virginia First Lady McDonnell Tries to Get Corruption Convictions Tossed” by Matt Zapotosky for Washington Post

Procurement

Texas: “House Launches Contracting Inquiry at 11 State Agencies” by Aman Batheja for Texas Tribune

John Steffen, executive director of the Executive Branch Ethics Commission, is stepping down to become the director of the Registry of Election Finance.

Steffen will replace Sarah Jackson who retired last fall.

The transition will take place in May and the ethics commission will meet May 4 to determine who will replace Steffen.

Lawmakers met one final time Friday, April 17 to finalize the ethics reform bill passed at the close of the legislative session. Gov. Terry McAuliffe proposed an amendment to change the gift limit from $100 per gift, but allowing an unlimited number of such gifts, to a $100 aggregate limit from any one source.

After correcting a drafting error in the amendment, both chambers unanimously passed the measure. The new limits go into effect on January 1, 2016.

After completing work on the bill, the General Assembly adjourned sine die.

Photo of the Virginia State Capitol by Varmin on Wikimedia Commons.

Lobbying

Arkansas: “30-Day Grace Vexes State’s Ethics Panel” by Michael Wickline for Arkansas Online

Campaign Finance

“House Quietly Passes Tax Exemption for Megadonors” by Kenneth Vogel and Hillary Flynn for Politico

“Big Money in Politics Emerges as a Rising Issue in 2016 Campaign” by Matea Gold for Washington Post

Ethics

Florida: “Florida Ethics Panel Recommends Fining Former Lawmaker David Rivera $58K” by Kathleen McGrory for Miami Herald

Florida: “Even after the Gift Ban and Reform, Freebies Flow to Florida Lawmakers” by Michael Van Sickler for Tampa Bay Times

Kentucky: “Head of State Ethics Agency to Take Top Post at Kentucky Registry of Election Finance” by Jack Brammer for Lexington Herald-Leader

New Jersey: “Ferriero Convicted on Racketeering Count; Ex-Democratic Chief Used Political Clout for Profit” by Peter Sampson for Bergen Record

New York: “Carl Heastie, New York Assembly Speaker, Benefited from Mother’s Embezzling” by Russ Buettner and David Chen for New York Times

Pennsylvania: “Montco Businessman Charged in PennDot Graft Probe” by Ben Finley for Philadelphia Inquirer

Redistricting

North Carolina: “US Supreme Court Tosses NC High Court Decision on State’s GOP-Drawn Electoral Maps” by Ann Blythe for Raleigh News & Observer

The state Ethics Commission is discussing how to administer new lobbying and campaign laws signed by Gov. Asa Hutchinson. Senate Bill 967 (now Act 1280) limits lobbyists to one “planned activity” per week and provides a 30-day grace period for officials to return improper gifts. Political contribution limits from individuals and PACs to a candidate have been raised from $2,000 to $2,700 per election.

Act 1280 also authorizes the commission to oversee new ethics laws contained in a constitutional amendment passed by voters in 2014. The amendment prohibited lobbyist gifts and corporate contributions, but did not provide the commission authority to administer the constitutional changes.

Earlier this year lawmakers passed House Bill 1002 (now Act 47), but that law only authorized the commission to issue advisory opinions concerning the amendment.

Act 1280 further provides the commission with statutory authority to administer the changes by issuing rules and investigating complaints. Act 1280 became effective upon Hutchinson’s signature.

Lobbying

“Bill Shuster Admits ‘Private and Personal Relationship’ with Airline Lobbyist” by John Bresnahan, Anna Palmer, and Jake Sherman for Politico

Campaign Finance

“Clinton Campaign Will Accept Donations from Lobbyists and PACs” by Sam Stein and Paul Blumenthal for Huffington Post

New York: “New York State Elections Board Retains a Corporate Donation Loophole” by Jesse McKinley for New York Times

Rhode Island: “Campaign Finance Measures Sent to Governor” by Jennifer Bogdon for Providence Journal

Ethics

“Clinton Foundation to Restrict Foreign Donations” by Tom Hamburger and Rosalind Helderman for Washington Post

Alabama: “Hubbard Defense Claims Prosecutorial Misconduct in Ethics Case” by Kim Chandler (Associated Press) for Greenfield Daily Reporter

Georgia: “Ga. Ethics Commission Search for Leader Down to 4 Finalists” by Kathleen Foody (Associated Press) for Columbus Ledger-Enquirer

Indiana: “Ethics Legislation Gets Closer to Becoming Law” by Alec Gray for Indianapolis Business Journal

Virginia: “Legislature Approves Ethics Bill with $100 Aggregate Gift Cap” by Jim Nolan and Markus Schmidt for Richmond Times-Dispatch

Washington: “Washington Auditor Pleads Not Guilty to Federal Indictment” by Gene Johnson and Derrick Nunnally (Associated Press) for The Sun Herald