Rob McCord, Pennsylvania’s state treasurer, has resigned amid a federal investigation.

After serving for six years in the elected position, McCord announced plans to plead guilty to charges of using his office to threaten potential campaign donors hoping to continue doing business with the commonwealth. It is unknown exactly what the charges will be, as is whether or not McCord will face jail time.

Gov. Tom Wolf will now nominate someone to serve the remaining two years of McCord’s term.

Photo of Rob McCord by Ruhrfisch on Wikimedia Commons.

Lobbying

“Top Frankfort Lobbyists Make Big Money … VERY Big” by Tom Loftus for Louisville Courier-Journal

Missouri: “Ethics Amendment Sponsor Sees Little Chance for Effective Action by Lawmakers” by Rudi Keller for Columbia Daily Tribune

Campaign Finance

“Capitalizing on a Political Contribution Cap Hike” by Carrie Levine for Center for Public Integrity

California: “San Diego County Supervisors Put Caps on Campaign Spending” by City News Service for KPBS

Ethics

“Obama Administration Seeks to Negotiate Medicare Drug Prices” by David Morgan for Reuters

Nevada: “When Do Lawmakers’ Day Jobs Become Conflicts of Interest?” by Kyle Roerink for Las Vegas Sun

New York: “State Ethics Panel Seeks More Clout, Leeway” by Casey Seiler for Albany Times Union

New York: “New York City Councilman Arrested on Corruption Charges” by Nikita Stewart for New York Times

Oregon: “Cylvia Hayes Scandal: Kitzhaber associates helped create jobs for her that had Oregon influence in mind” by Nick Budnick and Laura Gunderson for Portland Oregonian

Pennsylvania: “After Rapid Rise, Pennsylvania Attorney General Faces Sharp Fall” by Jennifer Steinhauer for New York Times

Elections

“The Surprising Power of Blue-State Republicans” by Nate Cohn for New York Times

A bill introduced in the New York Senate would impose new reporting requirements on lobbyists and lobbyist employers, as well as limit political contributions from lobbyists and certain other persons. The bill also contains pay-to-play restrictions.

Senate Bill 02505 requires lobbyists, certain business entities, persons with ownership interests or senior level management within such entities, and family members of any of the foregoing to file campaign finance reports when making contributions to the governor, lieutenant governor, attorney general, comptroller, and state legislators.

The bill further limits the amount of any contribution made to any of those offices or associated political committees. The bill requires lobbyists and lobbyist employers to disclose contributions to the governor, lieutenant governor, attorney general, comptroller, and state legislators on their periodic reports.

Senate Bill 02505 requires state contractors with contracts totaling more than $50,000 and persons who own more than 10 percent of any business entity having such a contract, senior management personnel in such a business entity, and family members of the foregoing persons to file campaign finance reports. The bill also limits contributions from such persons to the governor, lieutenant governor, attorney general, comptroller, and state legislators and affiliated political committees for the duration of the qualifying contract.

Senate Bill 02505 was referred to the Senate Committee on Finance on January 28, 2015.

Missouri House Speaker John Diehl will no longer allow food paid for by lobbyists in committee hearings. Although he made no formal change to House rules, Diehl believes his new policy will be followed because the committee chairmen serve at his pleasure.

Last week, Diehl also banned House committees from meeting outside the Capitol in an effort to curb the practice of lobbyists providing catered meals to committee members as they consider legislation.

As Missouri ethics laws come under scrutiny, Diehl’s actions may be a step in the right direction.

Photo of the Missouri State Capitol by RebelAt on Wikimedia Commons.

Campaign Finance

North Carolina: “Audit: Elections board spent nearly $1 million for nothing” by Craig Jarvis for Raleigh News & Observer

Wisconsin: “Federal Judge’s Judgment Takes John Doe Probe off Life Support” by M.D. Kittle for WisconsinReporter.com

Ethics

“How Did Politics Get So Personal?” by Thomas Edsall for New York Times

“How and Why Retired Politicians Get Lucrative Appointments on Corporate Boards” by Maxwell Palmer and Benjamin Schneer for Washington Post

California: “California’s Top Political Ethics Cop Resigns” by Laurel Rosenhall for Sacramento Bee

New York: “Pushing Ethics Reforms, Cuomo Wants Lawmakers to Reveal Income or Lose It” by Alexander Burns and Susanne Craig for New York Times

Rhode Island: “House Will Once Again Mull Two Proposals to Restore Ethics Commission’s Authority over State Lawmakers” by Jennifer Bogdon for Providence Journal

Elections

“Measles Prove Delicate Issue to GOP Field” by Jeremy Peters and Richard Pérez-Peña for New York Times

Legislative Issues

Nevada: “Assemblyman May Be Extortion Victim, Police Say” by Ray Hagar for Reno Gazette-Journal

New York: “Heastie Is Elected Speaker of New York Assembly” by Jesse McKinley for New York Times

A new bill could increase the expenditure threshold for lobbyist registration. House Bill 2082, attempting to account for inflation, would increase the current $100 threshold to $1,000.

The current law has been in place since 1975.

Proponents of the bill believe it will only serve to protect private citizens from inadvertently breaking the law, while having no effect on industry lobbyists, who typically expend much larger sums.

Carol Williams, executive director of the Kansas Government Ethics Commission, presented the proposal to the House Elections Committee and was the only person to testify on the matter.

The Citizens Ethics Advisory Board has levied a $10,000 penalty against a lobbyist for accepting illegal contingency fees. Robert M. Silverberg had a contract with Clean Power Public of New Haven paying him 15 percent of the gross value of contracts he obtained from the state governments of Connecticut and Pennsylvania.

Silverberg did not disclose any administrative lobbying from January 2013 to January 2014, stating he was unaware his activities were subject to lobbying laws. He believed he was only engaging in sales activities.

The fine will be suspended pending Silverberg’s compliance with a consent order requiring him to attend annual training for five years and

On February 3, the Federal Election Commission (FEC) published its price index adjustments for expenditure limitations and lobbyist bundling disclosure threshold in the Federal Register. The lobbyist bundling disclosure threshold has increased to $17,600 for 2015 from $17,300 in 2014. This threshold amount is adjusted annually.

Federal law requires authorized committees of federal candidates, leadership political action committees (PACs), and political party committees to disclose contributions bundled by lobbyists and lobbyists’ PACs.

The Federal Election Commission (FEC) has published the 2015-2016 election cycle contribution limits, which have been indexed for inflation. As required by the Bipartisan Campaign Reform Act of 2002, the FEC must adjust certain contribution limits every two years.

The individual and nonmulticandidate PAC contribution limit to federal candidates has increased from $2,600 to $2,700 for both primary and general elections, allowing for a total of $5,400 for a federal candidate.

The limits on contributions by individuals to national party committees has increased from $32,400 to $33,400 per calendar year. Individuals may now contribute $100,200 per calendar year to committees of a national political party for presidential nominating conventions, to committees of a national political party for preparation for and the conduct of election recounts and contests and other legal proceedings, and to committees of a national political party for the construction, purchase, renovation, operation, and furnishing of one or more buildings for party headquarters.

The electronic filing system of the Public Integrity Commission, the Public Integrity Reporting System, is being moved. As a result of the change, filers will be required to update their passwords after the system is moved.

The system will be down for the transfer from 11:00 p.m. on February 7 to 6:00 a.m. on February 9.

The first time a filer logs in after the system is moved, he or she will be prompted to create a new password. The commission has not released the web domain of the new system but is scheduled to do so in the near future.

Lobbying

Missouri: “Missouri Lawmakers’ Steady Shift to Lobbying Raises Concerns with Critics” by Jason Hancock for Kansas City Star

New Jersey: “Christie’s Overseas Travel Funded by Firms That Do Business with N.J.” by Shawn Boburg and Hugh Morley for Bergen Record

Campaign Finance

Montana: “State Legislative Panels Reject Campaign Finance Reform Bills” by Charles Johnson for The Missoulian

Ethics

Indiana: “Indiana Gov. Pence Walks Back State-Run Media Site” by Danielle Hayes for UPI.com

Kansas: “Kansas House Rejects Amendment to Address Private E-mail Loophole” by Bryan Lowry for Wichita Eagle

New York: “Speaker Candidate Drew Ethics Panel’s Notice” by Susanne Craig and Thomas Kaplan for New York Times

Pennsylvania: “Pennsylvania Treasurer McCord to Plead Guilty in Campaign Finance Case; Resigns Immediately” by  The Associated Press for Greenfield Daily Reporter

Wisconsin: “Wisconsin’s Treasurer Wants to Cut Needless Workers, Starting With Himself” by Julie Bosman for New York Times

Elections

Massachusetts: “Statute Against Lying in Campaign Ads Faces Legal Test” by Stephanie Ebbert for Boston Globe

Legislative Issues

Texas: “Texas Lawmaker Demands Muslim Visitors Take Loyalty Oath” by Adam Lerner for Politico

Q. With the start of the New Year, are there any changes I should be aware of in political contribution limits?

 A. Aside from changes as a result of new legislation, the most common adjustment of contribution limits is indexing for inflation.  Typically, adjustments are made biennially for inflation according to the Consumer Price Index.  The Consumer Price Index is calculated by the United States Department of Labor, Bureau of Labor Statistics.

This concept was addressed by the United States Supreme Court in Buckley v. Valeo (1976).  The court allowed federal contribution limits to be adjusted upwards at the beginning of each calendar year by the average percentage rise in the Consumer Price Index for the 12 preceding months.

The principal behind this is quite simple:  it is based on the recognition that the cost of campaigning steadily increases each year based on the increase to cost of living.  Campaign fliers, mailers, yard signs, and media buys do not cost the same in 2013 as they do in 2015.

This year, California adjusted its contribution limits for the 2015-2016 biennium.  In doing so, corporate contributions limits for general assembly candidates increased from $4,100 per election to $4,200.  Washington adjusts its limits in even-numbered years, so the 2014 corporate contribution limit of $950 per election for state legislative candidates will remain the same for 2015.   Illinois adjusts its limits in odd-numbered years, so the 2014 corporate contribution limit of $10,500 per election cycle for legislative candidates will increase to $10,800.

Finally, the indexing of contribution limits usually results from amendments to a state’s administrative code as opposed to its statute.  In order to ensure compliance, a contributor should review both of these sources.

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.

Lobbying

Missouri: “Missouri House to Halt Committee Meetings at Country Clubs and Restaurants” by Kevin McDermott for St. Louis Post-Dispatch

Washington: “Lawmakers Grouse about Free Meals Rule” by Jordan Schrader for Tacoma News Tribune

Campaign Finance

“National Donors Pick Winners in State Elections” by Ben Weider for Center for Public Integrity

New Jersey: “Auditor Finds No Pay-to-Play Conflict in N.J. Pension Investment” by Andrew Seidman for Philadelphia Inquirer

Ethics

“Amid Ethics Concerns, House Energy Chairman Drops Bill” by Tony Cook for Indianapolis Star

Massachusetts: “State Senator’s Lavish Gift Raises Concerns on Ethics” by Andrea Estes for Boston Globe

New York: “6 Days That Felled Sheldon Silver, the Speaker Who Ruled Albany for Decades” by Jesse McKinley, Thomas Kaplan, Susanne Craig, and William Rashbaum for New York Times

Elections

“Mitt Romney Decides against Running for President Again in 2016” by Philip Rucker and Dan Balz for Washington Post

A bill creating a revolving door for lawmakers seeking to lobby after leaving office was approved by the Senate Rules, Joint Rules, Resolutions, and Ethics Committee by a 7-0 vote.

The bill requires state lawmakers to wait two years after leaving office before working as lobbyists. It also bans out-of-state travel paid by lobbyists and limits when a lobbyist can report spending on a group of legislators instead of on individual members.

If passed, the bill would have an effective date of January 2017.