The provisions of a campaign finance reform bill passed by the Council of the District of Columbia take effect January 31, 2015. The special election set for April 28, 2015, will be the first test to the new restrictions found in Bill 20-0076.

However, according to the Office of Campaign Finance, all campaigns registering prior to the effective date of the law will not be subject to its provisions. The new law will only affect those campaigns registering on or after February 1, 2015.

Among the changes, Bill 20-0076 imposes a training requirement for committee treasurers and requires all campaign finance reports to be filed electronically. The new law also restricts contributions from affiliated entities, thereby closing the “LLC loophole”.

We have many things for which we are thankful at State and Federal Communications. Before the day gets away from us, we would like to thank you for following Lobby Comply Blog.

We’ve had a great year and look forward to giving our very best service to our clients in 2015. Happy Holidays from all of us at State and Federal Communications!

Lobbying

“Waning Influence? Part 3: Ups and Downs, by Industry” by Dan Auble for Center for Responsive Politics

“PSC Rejects FPL’s Lobbying Fee Request” by Susan Salisbury for Palm Beach Post

“Boston-to-D.C. Flights Showcase Region’s Power Players” by Matt Viser for Boston Globe

Campaign Finance

“Wall Street Money Can Predict How Democrats Vote. Here’s How” by Chris Wilson and Pratheek Rebala for Time

“National Parties, Donors Embrace Higher Campaign Limits” by Fredreka Schouten for USA Today

“Ethics Panel Wants State Agencies, Employees to Disclosure Campaign Activity” by Mario Moretto (Bangor Daily News) for Lewiston Sun Journal

Ethics

“Languid, Lax Congressional Ethics Disciplinary System May Pick Up Pace in 2015” by David Hawkins for Roll Call

“‘Boss’ Gifts to Pittsburgh Employees from Peduto Raise Questions” by Bob Bauder for Pittsburgh Tribune-Review

Elections

“The Tortoise and the Hare” by Maggie Haberman for Politico

Redistricting

“Panel Adopts Ideas for Changing Virginia’s Redistricting Process” by Jenna Portnoy for Washington Post

Today, the Ohio House of Representatives adjourned sine die, having concluded it regular floor session on December 17. The Senate had previously adjourned sine die on December 18. Among the bills passed by both chambers of the Legislature is a redistricting plan to be voted on by Ohioans in November of 2015.

Photo of the Ohio Statehouse by Urban on Wikimedia Commons.

On December 22, the Montana Commissioner of Political Practices’ proposed rule amendment increasing the threshold amount of payment triggering lobbyist registration to $2,500 for 2015 and 2016 was adopted. The payment threshold is adjusted by an inflation factor determined by the commissioner. The previous threshold amount was $2,450 for the calendar years 2013 and 2014.

State and Federal Communications is thrilled to work in Akron and we recognize that we have a responsibility to reach out to the community around us. For this holiday season, our Giving Tree donations have gone to the CORE Furniture Bank in Cuyahoga Falls.

CORE is an amazing organization that assists families in need with furniture and housewares, so we collected sheets, blankets and pillows.

Many agencies in Summit County partner with CORE, including Summit County Children Services, the Veterans Administration, Haven of Rest Ministries, Battered Women’s Shelter, Oriana House, OPEN M, and Springtime of Hope.

Happy Holidays to the CORE Furniture Bank, and thank you for all of the work you do to help our community!

Lobbying

Arkansas: “Schools Rethinking Gifts to Arkansas Lawmakers Following Passage of Constitutional Amendment” by the Associated Press for Greenfield Reporter

Florida: “Homestead’s Former Mayor Sentenced to 22 Months in Corruption Case” by David Ovalle and Melhor Marie Leonor for Miami Herald

Maine: “Maine Public in the Dark on Local-Issue Lobbying” by Steve Mistler for Portland Press Herald

West Virginia: “Statehouse Beat: Lobbyists change with new Legislature” by Phil Kabler for Charleston Gazette

Campaign Finance

“Here’s Where Campaign Finance Reform May Move Ahead As Congress Dithers” by Paul Blumenthal for Huffington Post

Ethics

Pennsylvania: “Kane’s Account of Sting Draws Increasing Fire” by Craig McCoy and Angela Couloumbis for Philadelphia Inquirer

Pennsylvania: “Who’s Minding the Store for Legislative Ethics?” by Joe Smydo for Pittsburgh Post-Gazette

Wisconsin: “GAB Declined to Reauthorize Walker Campaign Probe” by Patrick Marley and Jason Stein for Milwaukee Journal Sentinel

Wisconsin: “Wisconsin Elections Board Director Defends Work, Structure, Amid Calls for Overhaul” by Scott Bauer (Associated Press) for Minneapolis Star Tribune

Elections

“Tea Partier Braces for Primary Challenge from the Establishment” by Manu Raju for Politico

Redistricting

North Carolina: “NC Supreme Court Upholds GOP-Drawn Legislative and Congressional Districts” by Ann Blythe for Raleigh News & Observer

State and Federal Communications was a sponsor of a recent WASRG holiday event to raise money for The Children’s Inn at NIH, which is located in Bethesda, Maryland and serves pediatric patients and their families from all over the world.

Current WASRG President Stefani Grant from Unilever and 2015 WASRG President Rebecca South from State & Federal Communications sent the following thank you note:

“On behalf of the Washington Area State Relations Group Board of Directors, I would like to let you know that the Annual WASRG Holiday Happy Hour raised $1,974 for The Children’s Inn at NIH!  Your generosity and good cheer helped to make our event fun and allowed WASRG to give to a worthy cause.”

We are always happy to work with WASRG and we’re honored to do our part to help The Children’s Inn at NIH!

On December 19, the Arizona Citizens Clean Elections Commission issued a statement regarding the court ruling earlier this month invalidating the statutory definition of political committee. On December 5, a federal judge declared the state’s definition of political committee “vague, overbroad, and consequently unconstitutional in violation of the First Amendment.” In Galassini v. Town of Fountain Hills, Senior District Judge James A. Teilborg of the United States District Court for the District of Arizona, relied on his prior determination finding A.R.S. §16-901(19) unconstitutional.

In its statement, the commission says, “We strongly recommend that candidates and other persons who participate financially in state and legislative candidate elections continue to make filings as required by law, subject to enforcement under the Clean Elections Act and Rules.”

Lobbying

California: “Santa Monica Could Require Lobbyists to Register” by Nikki Cervantes for Santa Monica Lookout

Pennsylvania: “Pennsylvania Lawmakers Will Be Challenged to Ban Themselves from Taking Lobbyists’ Gifts” by Marc Levy (Associated Press) for Columbus Republic

Rhode Island: “Mollis Concludes Former R.I. Attorney General Lynch Did Not Violate Lobbying Rules” by Katie Mulvaney for Providence Journal

Rhode Island: “Ruling Says Zaccagnino Lobbied for 38 Studios without Registering” by Katie Mulvaney for Providence Journal

Campaign Finance

“New Software Helps Connect the Money Dots in Politics” by Eric Lipton for New York Times

New York: “Hotelier Avoids Prison for Violating Campaign Finance Laws” by Stephanie Clifford for New York Times

Ethics

“Lawyers Create Big Paydays by Coaxing Attorneys General to Sue” by Eric Lipton for New York Times

New Jersey: “New Jersey Paying Fees to a Financial Firm That Employs Christie’s Wife” by Kate Zernike for New York Times

Virginia: “Va. Del. Joseph Morrissey to Resign in Wake of Conviction but Run Again for His Seat” by Rachel Weiner for Washington Post

South Carolina: “S.C. House, Senate Clash over Ethics Reform” by Jeremy Borden for Charleston Post and Courier

Pennsylvania: “Ex-Traffic Court Judge Sentenced to Prison in Bracelet Case” by Julie Shaw for Philadelphia Daily News

Redistricting

Ohio: “Redistricting Reform Plan Passes House, Needs Voter Approval” by Jackie Borchardt (Northeast Ohio Media Group) for Cleveland Plain Dealer

Del. Joseph D. Morrissey announced he has resigned his seat, prompting a special election on January 13, 2015. The lawmaker entered an Alford plea on a misdemeanor count of contributing to the deliquency of a minor, acknowledging sufficient evidence for a conviction but not admitting guilt. The charge stems from an alleged relationship with a 17-year-old receptionist in his office.

Morressey plans to run in the special election to regain the House District 74 seat, leaving the decision of whether or not he should be removed from office to the voters.

Photo of Joseph D. Morrissey by Cliff on Wikimedia Commons.

The research team at State and Federal Communications has developed an Inaugurations Guide to help provide our clients with the most up-to-date changes. The guide is based on the November 2014 elections and provides names of the governors, inauguration dates, rules about providing tickets to events, and contributing to inaugural committees.

This guide provides you with yet another compliance reference tool to effectively handle the changing legislation as it pertains to government affairs. For non-subscribers you can gain access to the guide by clicking on the following link, Inaugurations Guide.

National:

A State Guide to Political Corruption, According to the Reporters Who Cover It
Washington Post – Niraj Chokshi | Published: 12/8/2014

With Congress stuck in the least productive rut in American history, the bulk of important legislative action is taking place in the states. But according to one study, all that power might not be in the best hands. Harvard University’s Edmond J. Safra Center for Ethics published a study looking at state-level corruption throughout the U.S. But instead of relying on conviction data, researchers surveyed some 280 regional reporters and asked them to grade each of the three branches of government in their state on legal and illegal corruption.

Energy Firms in Secretive Alliance with Attorneys General
New York Times – Eric Lipton | Published: 12/6/2104

An investigation by The New York Times found attorneys general in at least a dozen states are working with energy companies and other corporate interests to push back against the Obama administration’s regulatory agenda. The companies in turn are providing them with record amounts of money for their political campaigns, including at least $16 million this year. They share a common philosophy about the reach of the federal government, but the companies also have billions of dollars at stake. And the collaboration is likely to grow: for the first time in modern American history, Republicans in January will control a majority of attorneys general’s offices.

Payouts to McCrory, Sanford from Mortgage Broker Raise Ethical Questions
Charlotte Observer – Michael Biesecker and Mitch Weiss (Associated Press) | Published: 12/16/2014

Soon after taking office, North Carolina Gov. Pat McCrory and U.S. Rep. Mark Sanford accepted six-figure stock payouts from an online mortgage broker, a move that experts say raises ethical if not legal concerns. They were directors at Tree.com, the corporate parent of the website LendingTree. As board members, they were entitled to restricted company stock if they held their positions long enough. Both resigned after their election victories, which would have rendered their unvested stock worthless had the board not taken special action to provide them early payouts. McCrory and Sanford deny they did anything improper by accepting the payments from Tree.com, which were not fully described in their ethics statements.

Federal:

Every Election Is the Most Expensive Election. Or Not.
New York Times – Derek Willis | Published: 12/16/2014

Despite the efforts of the FEC, which has been faithfully disseminating campaign finance data since 1975, there are limitations in the ways that data is collected and summarized that make generating totals and comparisons very difficult. In a paper presented at the American Political Science Association conference this year, Temple University professor Robin Kolodny challenged the idea that we know each election is more expensive than previous ones, or that we even know how much campaigns really cost. Kolodny concludes this lack of knowledge fuels our perceptions of money in politics as an issue.

G.O.P. Angst Over 2016 Led to Provision on Funding
New York Times – Nicholas Confessore | Published: 12/13/2014

A campaign finance provision in the federal omnibus spending bill that will significantly raise certain contribution limits began with what Republican leaders regarded as an urgent problem: how would they pay for their presidential nominating convention in Cleveland in 2016? The talks ended with a bipartisan agreement that would allow wealthy donors to begin giving more than $1 million every election cycle to each party’s national committees.

Jeb Bush’s Decision to Explore Presidential Bid Scrambles the 2016 GOP Field
Washington Post – Matea Gold and Philip Rucker | Published: 12/16/2014

Former Florida Gov. Jeb Bush said he would “actively explore” a presidential run, immediately sending reverberations through the potential GOP field, tying up donors whom other candidates are courting, and forcing contenders to accelerate their own considerations for 2016. Bush became the first Republican to take an overt step toward a White House bid. He announced he would create a PAC, allowing him to raise money and travel the country ahead of an eventual decision.

From the States and Municipalities:

Arizona – Registration Rule for Political Groups Ruled Too Vague
Arizona Daily Sun – Howard Fischer (Capitol Media Services) | Published: 12/6/2014

A federal judge ruled an Arizona law defining a political committee is unconstitutionally vague. Deputy Secretary of State Jim Drake said at the very least, the judge’s order eliminates the requirements for disclosure of funding by groups pushing or opposing ballot measures. It is not unusual for these campaigns to cost millions of dollars. But attorney Paul Avelar of the Institute for Justice said he reads the ruling to apply to all the independent groups pushing to elect or defeat candidates. The order does not bar the state from requiring political committees to register. But legislators will have to redo the law in a fashion that courts find to be constitutional.

Arkansas – Questions Surround Constitutional Amendment on Ethics, Term Limits
Arkansas News – John Lyon (Arkansas News Bureau) | Published: 12/8/2014

Rep. Warwick Sabin and Sen. Jon Woods are aiming to end the confusion surrounding their co-authored and recently passed constitutional amendment, Issue No. 3. But the head of the Arkansas Chamber of Commerce said he expects the amendment to face multiple court challenges. The measure enacts significant ethics reforms for state legislators, such as restricting gifts, eliminating corporate campaign contributions, and extending the lobbying period for former legislators once their service is complete. The amendment also extends term limits to 16 years in either chamber of the state Legislature or a combination of both.

Georgia – State Ethics Agency Faces More Changes
Gainesville Sun – Christina Cassidy (Associated Press) | Published: 12/7/2014

It has been a tumultuous year at Georgia’s ethics commission, which has been hamstrung by a number of lawsuits filed by former employees, personnel issues, and allegations of outside influence with questions raised about its ability to ensure candidates, campaign committees, lobbyists, and others are disclosing their financial activities. Meanwhile, the agency has had 216 open complaints that have been pending an average of three years. A recent audit issued 42 recommendations that state lawmakers might consider to improve the effectiveness and independence of the commission.

Missouri – Ethics Bills Filed to Open Debate on Lobbying and Campaign Finance Rules
Columbia Daily Tribune – Rudi Keller | Published: 12/15/2014

Missouri Rep. Caleb Rowden filed a bill that would ban lobbyists’ gifts to individual lawmakers, their staff members, and families. It also would require subcontracting lobbyists hired by principal lobbyists to disclose the actual client being served. Rowden addresses campaign finance issues by requiring that legislators and statewide elected officials disclose donations greater than $500 within 48 hours during legislative sessions.

New York – After Ethics Panel’s Shutdown, Loopholes Live On in Albany
New York Times – Thomas Kaplan, William Rashbaum, and Susanne Craig | Published: 12/8/2014

Investigators for the Moreland Commission, an anti-corruption panel that New York Gov. Andrew Cuomo created last year, found a slew of questionable activity. But Cuomo abruptly shut down the commission as part of a deal with the Legislature. In Albany, some of the most questionable conduct by elected officials has long been perfectly legal, safeguarded by the only people who can outlaw it: the lawmakers themselves. Before it was disbanded, the commission urged elected officials to close loopholes, toughen criminal statutes, increase disclosure requirements, and restrict how campaign funds could be spent. Now, eight months after its work was cut short, little in Albany has changed.

Ohio – Work of FBI Squad Evident in Columbus Payday Probe
Marietta Times; Associated Press –   | Published: 12/11/2014

Columbus, Ohio’s growing population and increasing sophistication as a metropolis helped drive the FBI’s decision to dedicate a public corruption unit to the city. State Rep. Dale Mallory was fined for accepting Cincinnati Bengals tickets from lobbyists, Sen.-elect Sandra Williams was fined and sentenced to a suspended six-month jail term for selling Ohio State tickets her campaign purchased to a lobbyist and pocketing the proceeds. Two more state lawmakers, then- Reps. W. Carlton Weddington and Clayton Luckie, received prison time in the long-running investigation of payday-lending lobbyists. Two lobbyists also were convicted.

Pennsylvania – Two Philadelphia Lawmakers Charged in Sting Probe
Philadelphia Inquirer – Craig McCoy and Angela Couloumbis | Published: 12/16/2014

In a case that Pennsylvania Attorney General Kathleen Kane said was “not prosecutable,” the Philadelphia district attorney’s office announced felony corruption charges against two state legislators accused of accepting cash from an undercover lobbyist who videotaped the exchanges. Reps. Ronald Waters and Vanessa Brown are charged with criminal conspiracy, bribery, conflict-of-interest, and failure to report on their financial interest disclosure forms – all stemming from allegedly accepting money in exchange for promised political actions. Kane dismissed the case in 2013, citing legal flaws, poor supervision, and a taint of racism to the investigation. District Attorney Seth Williams then took up the inquiry.

Rhode Island – Mollis Adopts Hearing Officer’s Decision that Corso Engaged in Unregistered Lobbying Related to 38 Studios
Providence Journal – Jennifer Bogdon | Published: 12/5/2014

Rhode island Secretary of State A. Ralph Mollis has adopted the decision by a hearing officer that attorney Michael Corso engaged in unregistered lobbying relating to 38 Studios. Corso, whose friendship with former House Speaker Gordon Fox helped bring the now bankrupt video-game company to the state, will face a $2,000 fine if he does not file the required reports. Mollis convened the administrative hearing process after media stories shed light on Corso’s role in advocating for $75 million in state-backed loan guarantees in a jobs-creation bill. The funding eventually went to 38 Studios.

Wisconsin – Republicans Seize on Audit Critical of State Elections Board
Milwaukee Journal Sentinel – Patrick Marley | Published: 12/12/2014

An audit critical of the nonpartisan board that oversees ethics and elections in Wisconsin fueled calls for change from Republicans who control the Legislature. The long-awaited report detailed a number of problems with the Government Accountability Board, which began in 2008. The audit said board staff did not consistently follow a penalty schedule for enforcing campaign finance, lobbying, and code of ethics laws; did not conduct 16 required reviews over a four-year period to identify felons who may have voted illegally; and did not put in place written procedures for considering complaints.

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.

City Council has directed staff to draft an ordinance to require all lobbyists and others involved in municipal business to register with the city.

Council broadened the original proposal by Councilmember Sue Himmelrich and Mayor Pro Tem Tony Vazquez to require registration not only for those benefiting directly from city business, but any entity weighing in on issues. Councilmember Pam O’Connor wants registration required for everyone from local neighborhood representatives with issues before City Council to paid lobbyists.

Following a unanimous vote, the Office of the City Attorney was directed to begin researching, but not to hurry the process.