Governor Bruce Rauner signed Executive Order 15-09 last week, tightening ethical requirements for all state employees. The order closes the revolving door for executive branch and state agency employees by prohibiting them from negotiating for a new position with a lobbyist or lobbying entity while still employed.

Similarly, a former employee may not accept a position as a paid lobbyist or with a lobbying entity for one year after leaving his or her paid position. Furthermore, state employees, their spouses, or immediate family members living therewith may not solicit or knowingly accept any gift from prohibited sources. The order also expands what state employees must disclose on their statements of economic interest.

Indiana House Speaker Brian Bosma and House Minority Leader Scott Pelath have co-sponsored an ethics bill aimed at improving transparency and reducing conflicts of interest.

The proposal would tighten the rules on waivers for the one-year “cooling off” period for state agency officials taking private-sector jobs dealing with their former departments.

It would also expand the financial disclosure requirements for legislators and require them to disclose any relatives who are lobbyists.

Campaign Finance

“Two PACs Fined over Disclosure Failures” by Anita Wadhwani for The Tennessean

Ethics

California: “Alfred Villalobos, Fixture in CalPERS Corruption Scandal, Apparently Commits Suicide” by Dale Kasler for Sacramento Bee

Florida: “Court Hears Case Challenging Constitutionality of Florida’s Blind Trust Law” by Mary Ellen Klas for Tampa Bay Times

Florida: “Hialeah Mayor Hit with Ethics Charges Related to Ponzi Schemer” by Jay Weaver for Miami Herald

Elections

California: “Online Announcements Replace Speeches in California Senate Race” by Sharon Bernstein for Reuters

The Ethics Commission has released a memorandum summarizing legislative amendments proposed by staff to update, simplify, and improve the city’s Campaign Finance Reform Ordinance. The proposed amendments will repeal aggregate contribution limits, simplify reporting requirements for corporations and committees, and clarify disclaimer requirements for campaign communications.

The amendments will be considered during the Ethics Commission’s meeting on January 26 and will become law only if passed by the commission and approved by two-thirds of the Board of Supervisors. The memorandum is available here.

National:

How Campaigns Are Courting 16-Year-Olds
Politico – Darren Samuelsohn | Published: 1/11/2015

Presidential campaigns are looking to target teenagers who are not yet 18 but will be by Election Day 2016. More than eight million people will become legal adults eligible to vote for the first time by the next general election. Campaigns are eager to find ways to get through to these 16- and 17-year-olds who are still minors and, in most cases, more likely to be concerned with making it to class on time than who should be elected president. Indeed, both Democrats and Republicans are desperate for any edge at the polls, and they say they will be employing data mining techniques in search of supporters from this ripe demographic that has little or no track record in politics.

Federal:

Rating 2016 Candidates by Donors Busts Conventional Wisdom
CNN – Chris Moody | Published: 1/14/2015

Crowdpac uses public campaign finance records, along with other data, to plot where potential White House contenders fall on the political spectrum. Crowdpac’s algorithm displays the contenders on a liberal–conservative spectrum, and rates each person on 15 issues. The third piece of the algorithm, which includes the ideology of donors and examines how the politicians spend their own money, makes Crowdpac’s analysis unusual, and helps provide a clearer picture of how those seeking the White House compare to their peers.  The results can confound commonly held perceptions.

Who Needs Lobbyists? See What Big Business Spends to Win American Minds
The Center for Public Integrity – Erin Quinn | Published: 1/15/2015

When Washington, D.C.’s biggest trade associations want to wield influence, they often put more of their money into advertising and public relations. The Center for Public Integrity attempted to review spending by the nation’s most “politically active” trade groups, ones that spent more than $1 million on lobbying in 2012. The IRS requires the groups to report their top five contractors. Of $3.4 billion in contracts reported by trade groups from 2008 through 2012, more than $1.2 billion, or 37 percent, went toward advertising, public relations, and marketing services, more than any other category.

From the States and Municipalities:

California – L.A. Alliance for a New Economy Confirms Failure to Report Lobbying
Los Angeles Times – Emily Alpert Reyes | Published: 1/9/2015

The Los Angeles Alliance for a New Economy (LAANE), an influential group that successfully advocated for hiking the minimum wage for hotel workers, confirmed it left off information on reports filed with the city about how much it had paid to employees who act as lobbyists. Between 2009 and 2014, LAANE did not report any payments to its registered in-house lobbyists or any related expenses, despite the fact that emails and calendars for city officials show those lobbyists met regularly with lawmakers and their aides and helped suggest wording to city lawyers for the hotel wage ordinance. The group also did not list any matters its representatives lobbied on.

Florida – Ethics Deadbeats: Debt collectors seek $500K in outstanding fines from Florida public servants
Miami Herald – Christina Veiga | Published: 1/12/2015

The Florida Commission on Ethics has hired debt collectors to chase $487,549.96 in late fees from public officials and employees that have accumulated, in some cases, for more than a decade. Financial disclosure forms, which list net worth, sources of income, real estate holdings, and debts have been the repeated source of trouble or controversy for politicians over the years. Scofflaws are fined $25 a day until they file or they hit the cap of $1,500 per year. After 60 days, unpaid debts get sent to collections. If the person is still in public office, and receives a salary, then the commission can garnish paychecks, a new power that was given to the agency last year.

Illinois – Illinois Inauguration Raises Questions of Corporate Influence
Reuters – Mark Guarino | Published: 1/11/2015

Watchdog groups say activities surrounding Illinois Gov. Bruce Rauner’s inauguration are among the priciest of any incoming governor and take advantage of a loophole in campaign finance that allows wealthy special interests to gain access to those who hold political power. These groups say Rauner’s inauguration festival, with a total tab estimated to reach $10 million, is emblematic of a trend in other states. Critics say the costly celebrations, funded by private donors, skirt ethics laws and open conflicts-of-interest for elected officials.

Illinois – Rauner Spends 1st Full Day as Governor on Ethics, Reversal of Quinn Actions
Chicago Tribune – Monique Garcia, Rick Pearson, and Ray Long | Published: 1/13/2015

Illinois Gov. Bruce Rauner issued an executive order banning some state employees from negotiating for a lobbying job while working for the state. The order also prohibits employees in state agencies and the executive branch from taking lobbying positions for one year after they leave their public sector job. The new rules prevent state employees from receiving any free meals, beverages, or gifts from lobbyists and government business interests, or have travel expenses covered to discuss state business. State workers could still receive food and beverages served at business meetings or receptions in the course of their official duties, subject to approval from the governor’s office or agency.

Kansas – Grand Jury Investigates Loans to the Re-Election Campaign of Gov. Sam Brownback
Kansas City Star – Roxana Hegeman (Associated Press) | Published: 1/8/2015

Federal grand jurors are scheduled to hear testimony about loans made to the re-election campaign of Kansas Gov. Sam Brownback. Lt. Gov. Jeff Colyer made three $500,000 loans to the campaign in 2013 and 2014 and was repaid for two of them in days. Such large loans by candidates to campaigns are uncommon in Kansas, and the pattern of repaying one within days is a highly unusual move that has generated unanswered questions about where Colyer obtained such a large amount of cash.  Brownback and his wife also lent the campaign $200,000 last year. No other loans are listed in public reports.

Kentucky – Draft of Report on Kentucky Legislature Remains Untouched, Unreleased after Nine Months
Lexington Herald-Leader – John Cheves | Published: 1/14/2015

In October 2013, the Kentucky Legislature faced a scandal: a lawmaker who resigned over accusations he sexually harassed women at the Legislative Research Commission (LRC); allegations that sexual misconduct and favoritism made the LRC a hostile workplace; and the abrupt departure of longtime Director Bobby Sherman, whom police investigated for shredding documents days after he quit. The Legislature gave a $42,410 contract to the National Conference of State Legislatures (NCSL) to perform a performance audit of the LRC, the bureaucracy that runs the legislative branch of state government. NCSL submitted a draft report in April to Senate President Robert Stivers and House Speaker Greg Stumbo. But the leaders never responded, and rank-and-file lawmakers said they have not seen the report.

Minnesota – Minnesota Sen. Tomassoni Takes Job with Group That Lobbies Legislature
Minneapolis Star Tribune – J. Patrick Coolican | Published: 1/12/2015

Minnesota Sen. David Tomassoni was hired as executive director of the Range Association of Municipalities and Schools, an organization funded in part by public money that lobbies for those interests at the Capitol. His hiring immediately raised questions about whether the two roles would clash. Tomassoni said his role will be administrative, so he will not be lobbying his fellow lawmakers; the group will hire an independent lobbyist if it feels it needs to. He also promised to recuse himself from any votes where the association stands to benefit. Tomassoni’s work will not start until after the 2015 legislative session ends in late May, and he will take an unpaid leave of absence during every session.

North Carolina – Lobbyists, Not Just Lawmakers, Descend on Raleigh as New Session Begins
Raleigh News & Observer – Lynn Bonner | Published: 1/14/2015

North Carolina lawmakers filled the chambers of the Legislative Building for the start of a new session. But the day also launched the intense work of lobbyists. With 443 registered so far, lobbyists outnumber lawmakers by a ratio of more than two-to-one. While the state’s part-time legislators get much of the attention and cast the deciding votes, many ideas for new laws come from the lobbyists and their employers, which cover all sorts of interests. With permission from lawmakers, lobbyists can submit suggested bill language to legislative staffers.

Texas – House Panel Recommends Texas Legislature Take Action on Dark Money
Houston Chronicle – David Saleh Rauf | Published: 1/8/2015

Labeling “dark money” spending a corrupting force in the democratic process, the House Committee on State Affairs released a series of recommendations in a report that suggests the Texas Legislature take action to require disclosure of contributors to 501(c)(4) nonprofits. 501(c)(4)s are allowed to make independent expenditures to influence elections without having to disclose donors and have become a hot topic for state lawmakers after Gov. Rick Perry vetoed a dark money disclosure measure last session. The state Ethics Commission passed new rules intended to define when a 501(c)(4)’s political activity crosses the line and should have to disclose donors like a traditional PAC. The regulation is currently being challenged in court.

Texas – Judge Blocks City Campaign Fundraising Rule
Houston Chronicle – Theodore Schleifer | Published: 1/9/2015

A federal judge temporarily blocked a law limiting when candidates in Houston municipal elections can raise money. An ordinance prevented city candidates from raising money prior to February 1. The lawsuit against the city, filed by candidate Trebor Gordon, argued his First Amendment right to political expression authorized him to raise money for his campaigns whenever his contributors wished to donate.

Virginia – Jailed Lawmaker’s Return Brings Virginia Capitol More Unwanted Attention
Washington Post – Jenna Portnoy and Laura Vozzella | Published: 1/14/2015

A newly re-elected Virginia lawmaker hitched a ride from the jailhouse to the statehouse to be sworn in, even as legislative leaders discussed how to throw him out. Del. Joseph Morrissey, who spends his nights in jail because of a conviction for contributing to the delinquency of a minor, resigned his seat when he was convicted but won it back in a January 13 special election. He was back in his familiar legislative arena as the session convened, but with a whole new set of circumstances: colleagues ignored him, he was stripped of committee assignments, he had to give up his old office, and his desk on the House floor was put in a far corner.

West Virginia – In Unusual Arrangement, W.Va. Party Chairmen Double as Lobbyists
Charleston Gazette – David Gutman | Published: 1/11/2015

Larry Puccio left then-West Virginia Gov. Joe Manchin’s staff in early 2010 and became a lobbyist a week later. He was elected as state Democratic Party chairperson five months after that. Now, he is not alone in serving in the dual roles. West Virginia GOP Chairperson Conrad Lucas registered as a lobbyist with the state Ethics Commission in early December. While this might not be unusual in West Virginia – former Democratic Party Chairpersons Nick Casey, Chuck Smith, and Steve White all lobbied while they were leading the party – it is very unusual nationwide. Other than Puccio and Lucas, there are only two other party chairs anywhere in the country who are active registered lobbyists.

State and Federal Communications produces a weekly summary of national news, offering more than 80 articles per week focused on ethics, lobbying, and campaign finance.

A by-election will be held on February 5 to select a representative for the Legislative Assembly of the Province of Ontario, Canada, for the Electoral District of Sudbury. The by-election was announced on January 7 by Chief Electoral Officer Greg Essensa.

The campaign period for candidates began on January 7 and will end on May 5.

Photo of the Ontario Legislative Building by Andrijko Z. on Wikimedia Commons.

Gov. Jerry Brown has announced special elections to fill vacancies in state Senate Districts 7, 21, and 37. The vacancies were created by departures of three former state senators to Congress.

The special primary ballot is scheduled for March 17, 2015. If no candidate receives a majority of the vote, a runoff will take place on May 19.

Campaign Finance

Federal: “In 2014, Outside Groups Spent More Than the Candidates in Most Top Races” by Jamie Fuller for Washington Post

Federal: “Rating 2016 Candidates by Donors Busts Conventional Wisdom” by Chris Moody for CNN

Wisconsin: “Wisconsin Elections Board Recommends Lawmakers Overhaul Campaign Finance Laws” by Todd Richmond for Greenfield Reporter

Lobbying

Hawaii: “Ex-Chief of Staff Negotiates Revolving Door as Lobbyist” by Ian Lind for Honolulu Civil Beat

Washington: “Check, Please: Lawmaker would ban free meals for state officials” by Jordan Schrader for Bellingham Herald

Washington: “From State Job to Lobbying Gig? Officials Want ‘Cooling-Off’ Year First” by Jim Brunner for Seattle Times

Ethics

California: “Ex-Schools Boss Sent to Prison” by Greg Moran for San Diego Union Tribune

Illinois: “Rauner Spends 1st Full Day as Governor on Ethics, Reversal of Quinn Actions” by Monique Garcia, Rick Pearson, and Ray Long for Chicago Tribune

South Carolina: “Ex-Sen. Ford Pleads Guilty Then Says ‘I Ain’t No … Crook’” by John Monk for The State

Virginia: “Ethics Issues Loom over General Assembly’s Start” by Patrick Wilson for The Virginian-Pilot

Lobbying

“New Rules Target House Witnesses” by Megan Wilson for The Hill

“Minnesota Sen. Tomassoni Takes Job with Group That Lobbies Legislature” by J. Patrick Coolican for Minneapolis Star Tribune

“W.Va. Ethics Commission to Hold Lobbyist Training Course” by The Associated Press for Charleston Gazette

Campaign Finance

“Campaign Finance Bill Seeks to Toughen Disclosure Rule” by Bill Salisbury for St. Paul Pioneer Press

“Ex-Missouri Lawmaker Fined $100,000 by Ethics Commission” by Marie French (Associated Press) for The Daily Journal

“Supreme Court Declines to Review VT Campaign Law” by David Gram (Associated Press) for Burlington Free Press

Ethics

“Mike Hubbard Wins 2nd Term as Ala. House Speaker” by Brian Lyman for Montgomery Advertiser

“Ethics Deadbeats: Debt collectors seek $500K in outstanding fines from Florida public servants” by Christina Veiga for Miami Herald

“HHSC Revamping Rules after Paying for Janek Aide’s MBA” by Terri Langford for Texas Tribune

“Legislators Push Deadline on Ethics Training” by Lee Davidson for Salt Lake Tribune

Lobbying

“L.A. Alliance for a New Economy Confirms Failure to Report Lobbying” by Emily Alpert Reyes for Los Angeles Times

“In Unusual Arrangement, W.Va. Party Chairmen Double as Lobbyists” by David Gutman for Charleston Gazette

Campaign Finance

“Brian Foley Gets 3 Months in Halfway House in Rowland Case” by Mark Pazniokas for Connecticut Mirror

“Illinois Inauguration Raises Questions of Corporate Influence” by Mark Guarino for Reuters

“Judge Blocks City Campaign Fundraising Rule” by Theodore Schleifer for Houston Chronicle

Ethics

“Christie Ethics Adviser’s Law Firm Does Work for Port Authority” by Matt Friedman for Newark Star Ledger

Elections

“How Campaigns Are Courting 16-Year-Olds” by Darren Samuelsohn for Politico

“Vermont Governor Re-Elected After Failing to Win Majority” by David Gram (Associated Press) for ABC News

Legislative Issues

“G.O.P. Governors Face Test in Shift on Ideological Agendas” by Campbell Robertson and Trip Gabriel for New York Times

“Expenses Quietly Inflate S.C. Legislators’ Salaries” by Jamie Self for The State

A new ethics bill scheduled to be proposed in the Washington Legislature would impose a revolving door ban on state legislators, statewide elected officials, and directors of cabinet-level agencies.

The proposal was developed by Attorney General Bob Ferguson and Rep. Reuven Carlyle, D-Seattle.

The bill would impose a “cooling off” period, where said officials could not lobby state government for one year after leaving office.

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

Gov. Peter Shumlin has finally won reelection following a vote of the state legislature. Shumlin received just 46.4 percent of the vote in November, less than the majority required by the state constitution, compelling the legislature’s action.

Scott Milne received 45.1 percent of the vote but, unlike previous runners-up, he did not concede the election.

By secret ballots cast in a joint session of the House and Senate, Gov. Shumlin received 110 votes to Milne’s 69.

Photo of Gov. Peter Shumlin by Community College of Vermont on Wikimedia Commons.

On January 9, 2015, a federal court issued a preliminary injunction enjoining the city of Houston  from enforcing its ordinance prohibiting political contributions until the first day of February prior to the day of an election.

In Gordon v. City of Houston, the United States District Court for The Southern District of Texas, Houston Division, found the city did not present any evidence showing the ordinance advanced the city’s interest of preventing the appearance of corruption. The plaintiff argued the ordinance “stifles core political activity and prevents candidates from raising funds to run effective campaigns, yet it does not further the only legitimate governmental interest relevant in this area, i.e., the prevention of corruption or its appearance.”

Because this is a preliminary injunction, the court found the public interest would not be “disserved” by its issuance, concluding, “Any harm caused to defendants by issuing the injunction does not outweigh the more serious harm that will be suffered by Gordon if the challenged ordinance is enforced against him.”

Campaign Finance

“GOP 2016 Hopefuls Race to Cash In on Small Online Donors” by Scott Bland for National Journal

“Grand Jury Investigates Loans to the Re-Election Campaign of Gov. Sam Brownback” by Roxana Hegeman (Associated Press) for Kansas City Star

“House Panel Recommends Texas Legislature Take Action on Dark Money” by David Saleh Rauf for Houston Chronicle

Ethics

“Deal Reconsiders Campaign Pledge to Overhaul Ethics Commission” by Jonathan Shapiro for WACB