The United States Third Circuit Court of Appeals reversed a district court ruling granting a preliminary injunction against a Delaware campaign finance law requiring sponsors of third-party advertisements to disclose the identities of their donors.

Specifically, Section 8031 of the Delaware Election Disclosures Act, which became effective January 1, 2012, requires any person who makes an expenditure for a third-party advertisement exceeding $500 during an election period to file a report with the Elections Commission, including the names and addresses of each person who has made contributions to the sponsor of the third-party advertisements exceeding $100.

The Third Circuit ruled the lower court abused its discretion in granting the injunction. The Delaware Department of Elections may now enforce section 8031.

Seal of the United States Court of Appeals for the Third Circuit by Djwalsh3 on Wikimedia Commons.

The San Diego City Council Budget Committee approved a proposal to increase lobbyist registration fees. Under the proposal, the fees will increase from $40 to $150. Annual registration fees paid by clients who hire lobbyists would also increase from $15 to $30.

This increase will be the first since the enactment of lobbyist registration fees in 2008. The proposal must be approved by the full council, scheduled to meet again in September. If approved, the proposal would take effect in January.

Photo of the San Diego skyline courtesy of Tomcio77 on Wikimedia Commons.

Lobbying

California: “Lobbyist Fee Set to Increase” by David Garrick for San Diego Union-Tribune

Colorado: “How Effective are Lobbyists in Colorado at Passing, Killing Legislation?” by Arthur Kane for Colorado Watchdog

Campaign Finance

“Presidential Campaign Donors Hedge Bets” by Carrie Levine, Michael Beckel, Ben Wieder, and Dave Levinthal for Center for Public Integrity

“Small Donor Myth Debunked” by Kenneth Vogel and Tarini Parti for Politico

North Carolina: “Gov.’s Legal Counsel Knew of Board Member Interest Conflict” by Michael Biesecker and Mitch Weiss (Associated Press) for Raleigh News & Observer

Utah: “Sign Company’s PAC Buys Billboards for Biskupski; Becker Camp Protests” by Christopher Smart for Salt Lake Tribune

Ethics

California: “Director Concerned over Ethics Pick” by Greg Moran for San Diego Union-Tribune

Pennsylvania: “FBI Looking at Same Contractors in Reading and Allentown” by Matt Assad, Scott Kraus, Paul Muschick, and Emily Opilo for Allentown Morning Call

On July 14, 2015, the Anchorage Assembly voted 7-3 to move the regular 2017 city elections from November back to April. Last year the city Assembly voted to change city elections from April to November in the hopes of boosting voter turnout.

Members of the Assembly who supported the reversal based their votes on a number of issues ranging from logistics to preventing local candidate campaigns from being overshadowed by state and federal campaigns.

The Maine Legislature adjourned the first session of the 127th Legislature sine dine Thursday, July 16, 2015.

The session was marked by controversy, including an historic number of vetoes issued by Gov. Paul LePage. The governor acknowledged many of the vetoes were retaliatory after legislators rejected most of his policy initiatives.

Federal:

A Year after Rocky Merger, Patton Boggs Aims to Re-Establish K Street Dominance
Washington Post – Catherine Ho | Published: 7/13/2015

For decades, the name Patton Boggs was synonymous with K Street lobbying shops. But in 2014, the once dominant firm was acquired by Squire Sanders. Now, after a year of challenges – including the death of the firm’s renowned leader, Thomas Boggs, Jr., who helped define the modern-day lobbying industry – Patton Boggs is looking to re-establish itself with new leadership. That rebuilding is being led by Senate veterans Trent Lott and John Breaux.

From the States and Municipalities:

California – Director Concerned over Ethics Pick
San Diego Union-Tribune – Greg Moran | Published: 7/15/2015

Attorney Robert Ottilie was nominated for a seat on the San Diego Ethics Commission. In response, longtime commission Executive Director Stacey Fulhorst said she would resign her post if Ottilie is selected, adding that staff members and possibly other commissioners would also leave. She said Ottilie, who has represented city council members and campaign committees in front of the commission, is a “uniquely disruptive individual” whose presence on the panel would undercut its mission of enforcing campaign finance and ethics rules.

Colorado – Colorado Lobbying Income Likely to Set a Record This Year
Colorado Watchdog – Arthur Kane | Published: 7/15/2015

Lobbyists in Colorado are likely to make as much as $40 million in 2015, which would be a new record. Lobbyists have gone from making about $5.5 million in 1995 to nearly eight times as much with some years showing double-digit increases over the previous year, show disclosure filings. Colorado State University political science professor John Straayer said the state used to have individual lobbyists, but recently they have formed into organized corporations that provide lobbying, political fundraising, public relations, and other services. “They’re full-service operations,” said Straayer.

Colorado – The Colorado Soap Opera That Could Be a Major 2016 Headache for the GOP
Washington Post – Ben Terris | Published: 7/15/2015

In Colorado, allegations of an extramarital affair involving state Republican Party Chairperson Steve House have elevated a seemingly mundane political power struggle into a statewide soap opera that has left the GOP in disarray, a situation that could have national implications as one of the most unpredictable swing states prepares for the 2016 presidential race. If House, who denied the affair allegations, has been bruised, so too has state Attorney General Julie Coffman. The wife of U.S. Rep. Mike Coffman (R-Colo.), she had been widely viewed as a likely contender for governor in 2018. Now commentators across Colorado are wondering aloud if the attorney general committed blackmail.

Georgia – Gift Rules for State Employees Mostly Ignored, Observers Say
Savannah Morning News – Walter Jones (Morris News Service) | Published: 7/11/2015

Georgia Gov. Nathan Deal issued an executive order the day he was sworn into office prohibiting state employees or their families from accepting anything of value worth more than $25 from lobbyists or vendors. Existing state law requires anyone doing business with city, county, or state government that spends more than $250 in a year on gifts to file an annual report. Of the thousands of companies providing services to government agencies, only about two-dozen filed a gift report for 2014 activity. Some say the information reported by the few companies that do file raises questions about the exploitation of the law.

Louisiana – Ethics Report on New Orleans: Lots of progress since Katrina, but long way to go
New Orleans Times-Picayune – Richard Rainey | Published: 7/9/2015

Recovery from Hurricane spurred New Orleans to establish the Office of Inspector General, the Office of the Independent Police Monitor, and the Ethics Review Board, each watchdogs focused on rooting out corruption, wasteful spending, and generally bad behavior among the city’s elected officials and public employees. New Orleans voters approved their creation in 1995, but it took disaster in 2005 to spark some follow-through. But for one longtime ethics reform champion, that spark has not ignited enough improvement. David Marcello, executive director of the Public Law Center at Tulane University, praised the work of the inspector general and the police monitor, but came down hard on the ethics board in a new report.

New York – Bipartisan Group Sues to Close New York’s Corporate Donation Loophole
New York Times – Jesse McKinley | Published: 7/14/2015

A coalition of good-government advocates and state lawmakers has filed a lawsuit challenging New York’s so-called LLC loophole, which allows political donors to flout contribution limits by opening multiple limited liability companies. The lawsuit challenges the state Board of Elections deadlock in April when it was petitioned to reconsider how LLCs are viewed by the board, which counts each LLC as an individual. That allows each LLC to give up to $60,800 to a statewide candidate per election cycle. Critics contend the loophole allows donors, like real estate developers, to use multiple LLCs to make huge contributions to candidates.

North Carolina – Elections Board Finds No Violations in Sweepstakes Campaign Donations
Raleigh News & Observer – Craig Jarvis | Published: 7/15/2015

An investigation into more than $270,000 in questionable donations to the campaigns of top North Carolina officials from Chase Burns, an Internet sweepstakes magnate, has found no violations of state campaign finance law. Burns and his wife were among the top donors to North Carolina candidates in 2012, as the industry was lobbying lawmakers to overturn the state’s ban on the games. A watchdog group filed a complaint alleging Burns violated state laws against using corporate money for donations. Members of the elections board expressed frustration with ambiguities in North Carolina’s campaign finance laws.

North Carolina – NC Election Board Member’s Firm Worked for Target of Probe
WRAL – Michael Biesecker and Mitch Weiss (Associated Press) | Published: 7/10/2015

Paul Foley, a member of the North Carolina Board of Elections, demanded regular updates about an investigation into donations to the campaigns of Gov. Pat McCrory and dozens of other elected officials. Foley failed to disclose that his law firm had represented the target of the investigation, sweepstakes executive Chase Burns. Despite a law that demands officials remove themselves from proceedings if they have a financial relationship with a participant, Foley did not step aside for nearly a year-and-a-half, until State Elections Director Kim Strach learned of nearly $1.3 million in prior payments from Burns’ company to Foley’s law firm.

Oklahoma – Oklahoma Lobbying Disclosures Lag Behind Other States
Oklahoma Watchdog – Arthur Kane | Published: 7/9/2015

Important information about lobbying activity is not required in Oklahoma when most other states have adopted rules or laws mandating the disclosures. Unlike most states, Oklahoma does not require lobbyists to disclose what legislation they are supporting or opposing. The rules also do not require lobbyists to report how much they received from the organizations and businesses that hired them, a practice required by at least 14 other states.

Pennsylvania – Ex-Mayor of Pennsylvania’s Capital Charged with Corruption
Albany Times Union – Marc Levy and Mark Scolforo (Associated Press) | Published: 7/15/2015

Former Harrisburg Mayor Stephen Reed, who ended his 28-year tenure in 2010 with the city near financial ruin, was arrested and faces 499 criminal counts for theft, bribery, evidence tampering, and other charges. Reed and unnamed associates issued municipal bonds for legitimate purposes but allegedly used some of the proceeds to buy a bizarre list of artifacts for what Reed claimed was a plan to open a museum. The purchases included a life-size sarcophagus, a suit of armor, a “vampire hunter’s set,” and a $14,900 playbill from Ford’s Theatre on the night of the Lincoln assassination. Pennsylvania Attorney General Kathleen Kane said investigators are looking into allegations of misconduct by others, and she expects more charges to be filed.

Virginia – Plastic Tumblers, a Night at Dad’s House Top Gifts in Post-McDonnell Richmond
Washington Post – Laura Vozzella | Published: 7/13/2015

After Virginia Gov. Robert McDonnell was convicted on corruption charges, political gift-giving in the state has become such a modest and open affair that Matthew Ogburn would not spend the night in his boyhood bedroom without erring on the side of caution by making a public disclosure. Ogburn is a legislative assistant to a state senator and the son of David Ogburn, Jr., a Verizon lobbyist who lives in the Richmond suburbs. Lobbyists do not have to disclose gifts they make to their dependent children, but since Matthew Ogburn is 24 and living on his own, his father reports every time he comes for a visit.

Washington – Taxpayer Financed Campaign Proposal, with ‘Democracy Vouchers,’ Wins a Place Seattle’s Fall Ballot
Seattle Post-Intelligencer – Joel Connelly | Published: 7/13/2015

An initiative that qualified for the ballot would impose a property tax levy that would pay for publicly financed elections in Seattle. Initiative 122 would ban contributions from corporations with medium-sized and large city contracts, as well as corporations that spend money lobbying the city. It would also lower the donation limit for city races, and boost fines and penalties for election law violations.

Wisconsin – Vos: Time to ‘double down’ on GAB reform in wake of reported IRS links
Wisconsin Watchdog – M.D. Kittle | Published: 7/10/2015

Key legislative Republicans renewed their call to reform the Wisconsin Government Accountability Board (GAB) after The Wall Street Journal reported the agency and the IRS may have shared information about the state’s so-called John Doe investigation, the secret probe that targeted dozens of conservative groups and the campaign of Gov. Scott Walker. The newspaper ran an editorial noting GAB Director Kevin Kennedy has had a professional relationship for 20 years with Lois Lerner, the former IRS official who was involved in reviewing the tax exempt status of conservative political organizations. Kennedy knows Lerner from their involvement over the years with the Council on Governmental Ethics Laws.

Wisconsin – Wisconsin Supreme Court Ends John Doe Probe into Scott Walker’s Campaign
Milwaukee Journal Sentinel – Patrick Marley | Published: 7/16/2015

The Wisconsin Supreme Court ruled that a criminal investigation into coordination between conservative groups and Gov. Scott Walker’s 2012 campaign cannot continue. The decision ends the specter of an inquiry as Walker pursues the Republican nomination for president. The investigation began after the governor survived a recall election brought by voters who opposed limits he made to collective bargaining rights and union power. The probe looked at whether Walker’s advisers directed interactions with at least a dozen outside conservative groups, and whether that violated disclosure rules and donation limits.

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.

Today, the Wisconsin Supreme Court ruled campaign finance regulations for coordinated expenditures are limited only to expenditures made for “express advocacy and its functional equivalent.” Express advocacy is a communication expressly advocating for the election or defeat of a clearly identified candidate.

In Wisconsin v. Peterson, the court held the state’s legal definition of political purposes, upon which the campaign finance regulations rely, is unconstitutionally overbroad. Instead of invalidating the entire statute, the court narrowed the definition to expenditures for express advocacy and its functional equivalent, thereby rejecting the argument that in cases where there is not express advocacy the “coordinated expenditures constitute disguised contributions to the candidate or candidate’s campaign committee.”

Gov. Terry McAuliffe (D) is calling a special session of the General Assembly on August 17, 2015, to comply with a court order requiring legislators to redraw the state’s congressional map.

Last month, the 4th U.S. Circuit Court of Appeals ruled 2-1 for a second time Virginia must redraw the state’s congressional map by September 1, 2015. The court found the current map draws too many black residents into the 3rd Congressional District, which dilutes voting strength in other districts.

Republican leaders have asked the court to extend the deadline to November 16, 2015, in order to allow time for an appeal to the U.S. Supreme Court.

The Alabama Legislature convened a special session Monday, July 13, 2015, only to recess until August 3, 2015. The Senate was in session for a total of 19 minutes and the House was in session for less than 30 minutes.

Legislators claimed the timing of the special session was rushed, so they were unprepared to consider the governor’s proposed budget.

Lawmakers will reconvene the session on August 3 with the intent of passing a budget.

Initiative 122, a ballot measure proposing to raise property taxes in Seattle to create a publicly financed elections program, will appear on the general election ballot in Seattle. If passed, the “Honest Elections Seattle” measure would impose a $30 million tax levy over a 10 year period, granting citizens four $25 “democracy vouchers” to use towards the campaigns of city candidates.

Initiative 122 would also ban contributions from corporations with medium-sized and large city contracts as well as corporations who lobby city officials. Contribution limits would also be lowered under the measure, from $700 per election cycle to $500.

Voters in Seattle will have an opportunity to approve or deny Initiative 122 on November 3, 2015, at the regularly scheduled general election.

Lobbying

Colorado: “Colorado Lobbying Income Likely to Set a Record This Year” by Arthur Kane for Colorado Watchdog

Virginia: “Plastic Tumblers, a Night at Dad’s House Top Gifts in Post-McDonnell Richmond” by Laura Vozzella for Washington Post

Campaign Finance

“Revenge of Citizens United” by Kenneth Vogel and Tarini Parti for Politico

New York: “Bipartisan Group Sues to Close New York’s Corporate Donation Loophole” by Jesse McKinley for New York Times

Ethics

Minnesota: “Lobbyist Accuses Hastings Lawmaker of Defamation in Lawsuit” by David Montgomery for St. Paul Pioneer Press

Ohio: “Columbus Cancels Red-Light Camera Contract after Bribe Investigation” by Lucas Sullivan for Columbus Dispatch

Pennsylvania: “Ex-Mayor of Pennsylvania’s Capital Charged with Corruption” by Marc Levy and Mark Scolforo (Associated Press) for Albany Times Union

Redistricting

Florida: “One of America’s Weirdest Congressional Districts Has Just Been Trashed by the Florida Supreme Court” by Michael Miller and Nick Kirkpatrick for Washington Post

The Office of the City Clerk has proposed amended rules to chapter 1 of title 51 of the Rules of the City of New York pursuant to the enactment of Local Law 129 of 2013, which amended the city’s lobbying law.

The rules propose the following: set forth the procedure for enrolling in e-Lobbyist; define the roles of principal officer, designee, and compliance officer; provide requirements for retainers and authorization letters; indicate when filing extensions may be obtained; set forth the procedures for obtaining a waiver of late filing penalties; establish enforcement procedures; and create an amnesty program.

The amnesty program sets forth eligibility criteria for lobbyists and clients who have not previously complied with the city’s lobbying law, allowing such individuals to come into compliance without penalty for a given period of time.

A public hearing was held and the proposed rules are still under consideration by the Lobbying Bureau.

Lobbying

“Lobbyists Decamp for Capitol Hill Jobs” by Megan Wilson for The Hill

Tennessee: “Lobbyist: Armstrong paid to help wholesaler” by Jamie Satterfield for Knoxville News Sentinel

Utah: “Utah Cities Turning to Lobbyists as Their Lifeline to the Legislature” by Dan Harrie for Salt Lake Tribune

Virginia: “Lobbyists Spend Less on Lawmakers in Wake of McDonnell Trial” by Jim Nolan (Richmond Times Dispatch) for Roanoke Times

Campaign Finance

Florida: “Miami Beach Commission Bickers over $`1 Million in Donations to New Political Committee” by Joey Flechas for Miami Herald

New Jersey: “Federal Case Could Impact New Jersey Pay-to-Play Limits” by Jeff Brindle (New Jersey Election Law Enforcement Commission) for PolitickerNJ

Washington: “Taxpayer Financed Campaign Proposal, with ‘Democracy Vouchers,’ Wins a Place Seattle’s Fall Ballot” by Joel Connelly for Seattle Post-Intelligencer

Ethics

North Carolina: “NC Election Board Member’s Firm Worked for Target of Probe” by Michael Biesecker and Mitch Weiss (Associated Press) for WRAL

Pennsylvania: “What FBI Was After in Allentown City Hall Investigation” by Emily Opilo and Matt Assad for Allentown Morning Call

Lobbying

“A Year after Rocky Merger, Patton Boggs Aims to Re-Establish K Street Dominance” by Catherine Ho for Washington Post

Colorado: “Spend, Don’t Tell: Special interests influence lawmakers, but remain tight lipped” by Arthur Kane for Colorado Watchdog

Campaign Finance

Illinois: “Some Republicans Not Cashing Checks from Rauner” by Kurt Erickson and Joshua Maddox for Bloomington Pantagraph

Nebraska: “As Cost of Running for State Office Increases, Some Say It’s Time for a Fresh look at Campaign Spending” by Paul Hammel for Omaha World-Herald

Ethics

Georgia: “Gift Rules for State Employees Mostly Ignored, Observers Say” by Walter Jones (Morris News Service) for Savannah Morning News

New York: “Trial to Begin for Thomas Libous, New York Senator Whose Son Was Convicted” by Thomas Kaplan for New York Times

Pennsylvania: “FBI Raid on Reading City Hall Is Second in a Week” by Jeremy Roebuck for Philadelphia Inquirer

Wisconsin: “Vos: Time to ‘double down’ on GAB reform in wake of reported IRS links” by M.D. Kittle for Wisconsin Watchdog

Elections

“One of the Last In, Scott Walker Enters 2016 Presidential Race near the Top of the GOP Field” by Jenna Johnson for Washington Post