Lobbying

“The lobbying economy is twice as big as we think” by Andrew Prokop in Vox.

“Senate aide who helped save Export-Import Bank lands job at agency” by Megan R. Wilson in The Hill.

Campaign Finance

“Citizens United: The political landscape almost five years later” by Marianne Hayes in Metro.

Arizona: “‘Dark money’ begins to sully campaigns” editorial in The Republic.

Pennsylvania: “Pittsburgh’s campaign finance law called flawed” by Chris Potter in the Pittsburgh Post-Gazette.

Wisconsin: “Why Wisconsin’s Attorney General Won’t Defend The State” by Jacob Stein in Governing.

Ethics

Oklahoma: “Ethics agency stirs anger with complaint moratorium” by Janelle Stecklein in the Muskogee Phoenix.

Palm Beach County, Florida: “Ethics Commission considers adding fines for frivolous complaints” by Andy Reid in the Sun Sentinel.

South Carolina: “2 York County lawmakers named to new SC ethics panel” by Bristow Marchant in the Charlotte Observer.

West Virginia: “Ethics commission to hold training for lobbyists” by The Associated Press in the Washington Times.

Elections

“NBC poll: Good news for Senate Dems” by James Hohmann in Politico.

“Which State Had the Longest Voting Lines in 2012?” by Scott Powers in Governing.

Tech and Social Media

“Social Advocacy and Politics: Social Media and ʹGotchaʹ Politics” by Alan Rosenblatt in Social Media Today.

West Virginia: “WV Supreme Court launching weekly trivia challenge on Twitter Oct. 6” by Linda Harris in The State Journal.

The Legislative Assembly of British Columbia resumes today at noon for the prorogation of the second session of the 40th Parliament. The third session of the 40th Parliament will then open at 1:30 p.m. The third session is scheduled to adjourn on November 27, 2014.

Photo of the British Columbia Legislature Building by Ryan Bushby on Wikimedia Commons.

On October 2, the U.S. Supreme Court agreed to hear a case concerning whether a state commission created to craft federal congressional districts violates the Elections Clause of the U.S. Constitution. In Arizona State Legislature v. Arizona Independent Redistricting Commission, a voter initiative amended the state constitution to give the authority of redistricting to a commission rather than the state Legislature.

In February, a District Court held the Elections Clause does not prohibit Arizona from using a voter initiative to give congressional redistricting authority to a redistricting committee.

The Colorado Republican Party has been given permission to form an independent expenditure committee, or super PAC, because state law includes political parties under the definition of “persons.” A district court judge granted the party’s motion for summary judgment and will allow the group to raise and spend unlimited funds to aid in electing Republican candidates.

Earlier this year, the party asked Republican Secretary of State Scott Gessler for permission to form the committee. Gessler said he did not have authority to issue permission but encouraged the party to sue the state to clear up the matter. Republican Attorney General John Suthers appears to have followed Gessler’s lead and essentially did not fight the suit.

Nonprofit campaign finance watchdog Ethics Watch intervened in the case and argued a political party should not be able to set up a super PAC – as the huge influx in campaign spending might make candidates, who need a party’s endorsement to get their name on the ballot, beholden to the super PAC’s contributors.

Colorado voters passed a constitutional amendment in 2002 prohibiting corporations and labor unions from directly supporting candidates or political parties. In his decision, Second District Court Judge Robert McGahey avoided the constitutional conflict and maintains it is legal to establish the super PAC as long as it is truly independent of the party.

 

Q. I am a registered lobbyist, and I receive a contingency fee as part of my compensation.  Should I be worried?

A. In a majority of jurisdictions, there are express provisions prohibiting registered lobbyists from receiving a contingency-based fee.  Every jurisdiction treats this issue differently, and there is a wide range of statutory oversight.  This issue becomes especially problematic for in-house employees who wear dual hats—you may be required to register as a lobbyist because of your interactions with government officials on behalf of your company, but you may additionally be involved in sales work.

In some jurisdictions, including Louisiana, New Hampshire, and Wyoming, there are no prohibitions whatsoever. Other jurisdictions, such as Nevada, only narrowly prohibit contingency fees for influencing the outcome of legislative action. However, there are even more restrictive bans in other jurisdictions, including Florida and Arkansas, that not only prohibit registered lobbyists from receiving a contingency-based fee, but prohibit this for anyone involved in government procurement, absent meeting a limited exception for salespersons or sales agents.

New York is one example of a jurisdiction banning lobbyists from receiving contingency fees, although the state does have a well-defined registration exception for individuals who qualify as commissioned salespersons. To qualify, the primary purpose of employment must be sales, other lobbying activity must be limited, and the individual must meet specific requirements regarding the percentage of the commission. Another example is North Carolina, where the contingency fee ban is not applicable to an individual doing business with the state whose regular remuneration includes commissions based on these types of sales.

Bottom line, if you are required to register as a lobbyist, you must be aware of the laws applicable in your jurisdiction if you receive a contingency-based fee for your work.

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.

Here is our October-November calendar. If you are attending any of these events, please stop by and say hello!

October 8-10   PAC Fall Board Meeting, Santa Barbara, California

October 13   WGR Toastmasters, Washington, D.C.

October 21   WASRG Summit — Keynote Sponsor, Washington, D.C.

November 13-15   Women in Government Fifth Annual Healthcare Summit, Washington, D.C.

November 19-21   2014 Professional Women in Advocacy Conference, Washington, D.C.

November 22   SGAC Foundation’s Leaders’ Policy Conference, Scottsdale, Arizona

Who can turn the world on with her smile?
Who can take a nothing day, and suddenly make it all seem worthwhile?
Well it’s you girl, and you should know it
With each glance and every little movement you show it

Love is all around, no need to waste it
You can have a town, why don’t you take it
You’re gonna make it after all
You’re gonna make it after all

I am definitely going to date myself with this column, but it must be written. I totally forgot all about Mary Tyler Moore until someone posted the Minneapolis statue on Facebook during the National Conference of State Legislatures. It had me thinking and remembering the influence Mary Richards had on me becoming a professional business woman.

Think of it…what did we have before Mary Richards? Not many. Mary had her own apartment, job, budget, and friends. And, she had the great “a” and “z” bookends, which I attempted to create in ceramics class. [Yes, I still have them.]

National:

Mostly Black Cities, Mostly White City Halls

New York Times – Richard Fausset | Published: 9/28/2014

Disparities between the percentage of black residents and the number of black elected officials are facts of life in scores of American cities, particularly in the South. The unrest that followed the shooting death of 18-year-old Michael Brown in Ferguson, Missouri has emphasized how much local elections can matter, and prompted a push there for increased black voter participation. The disparities result from many factors, but Ferguson has become a vivid example of the way a history of political disengagement and underrepresentation can finally turn toxic.

Federal:

Court Reviews Contractor Political Donations

BusinessWeek – Pete Yost (Associated Press) | Published: 9/30/2014

In a dispute over a ban on political contributions by individual federal contractors, U.S. Court of Appeals for the District of Columbia Circuit grappled with reconciling the restrictions and their purpose of preventing corruption with the First Amendment and the various ways contractors could get around the ban. There is no such prohibition for corporate federal contractors that set up political committees or individuals who serve as corporate officers. The challengers filing the lawsuit say the different treatment violates the equal protection clause of the Constitution because similarly situated groups of people are not subject to the ban.

Left Embraces Boycott Politics

The Hill – Julian Hattem | Published: 10/2/2014

From gun control to climate change to same-sex marriage, a number of Fortune 500 companies are succumbing to pressure campaigns and boycotts and are falling in line with liberal positions on issues that Democrats have been unable to move through Congress. The Internet has made corporations a more alluring target to Web-fluent activists trying to change the country’s culture. It has also made companies more responsive. Conservative activists have mounted pressure efforts of their own, but their campaigns are often reacting, staged in support of businesses that are under fire from the left.

U.S. Judge Dismisses Republican Challenge to SEC Pay-to-Play Rule

Reuters – Sarah Lynch and Jonathan Stempel | Published: 9/30/2014

The U.S. Securities and Exchange Commission won dismissal of a lawsuit by state Republican parties in New York and Tennessee claiming its limits on some investment firm campaign contributions violate free-speech rights. U.S. District Court Judge Beryl Howell said her court lacks jurisdiction over the matter and ordered her clerk to close the case. The SEC’s rule bars an investment firm from managing a state’s assets for two years if the company, or certain of its executives, make more than a nominal campaign donation to a state official with power over state contracts with investment advisers.

From the States and Municipalities:

California – Jerry Brown Vetoes California Political Ethics Bills

Fresno Bee – David Siders (Sacramento Bee) | Published: 10/1/2014

California Gov. Jerry Brown vetoed key bills that were passed in response to a series of scandals at the Capitol, saying they would further complicate gift and campaign rules without sufficient benefit to the public. Senate Bill 1443 would have reduced to $200 the value of gifts an official can receive from a single source each year, and banned all gifts from lobbyists. Senate Bill 1442 would have required campaign committees to file finance reports four times a year, doubling the current requirement of twice a year. One measure Brown signed was Senate Bill 1441, which bans campaign fundraisers at lobbyists’ homes.

Florida – U.S. Supreme Court to Hear Former Hillsborough Judicial Candidate’s Fundraising Issue

Tampa Bay Times – Jim Saunders (News Service of Florida) | Published: 10/2/2014

The U.S. Supreme Court will take up a Florida case that focuses on whether judicial candidates should be allowed to personally solicit campaign contributions. The Florida Supreme Court this year upheld a ban on such solicitations, reiterating an earlier position that the prohibition helps in “preserving the integrity of the judiciary and maintaining the public’s confidence in an impartial judiciary.” But attorneys for a former Hillsborough County judicial candidate, Lanell Williams-Yulee, asked the U.S. Supreme Court to take up the issue, contending the ban violates First Amendment rights.

Hawaii – Cachola Fined a Record $50,000 for City Ethics Violations

Hawaii Reporter – Malia Zimmerman | Published: 9/27/2014

The Honolulu Ethics Commission fined state Rep. Romy Cachola, a former member of the city council, $50,000 for multiple alleged violations of city ethics laws, including accepting expensive meals and golf outings from lobbyists. The penalty is the largest civil fine ever approved by the commission, which said it was influenced by persistent violations occurring monthly during several years, as well as Cachola’s repeated disregard of a 2003 directive ordering him to not accept gifts from lobbyists in excess of $200.

Missouri – Ferguson Demands High Fees to Turn over City Files

Philadelphia Inquirer – Jack Gillum (Associated Press) | Published: 9/29/2014

The city of Ferguson has demanded high fees to produce copies of records related to the fatal shooting of 18-year-old Michael Brown that, under Missouri law, it could give away free if it determined the material was in the public’s interest to see. Instead, in some cases, the city has demanded high fees with little explanation or cost breakdown. It billed The Associated Press $135 an hour – for nearly a day’s work – merely to retrieve a handful of email accounts since the shooting. Price-gouging for government files is one way that local, state, and federal agencies have responded to requests for potentially embarrassing information they may not want released.

New York – Lobbyist Ethics Training Is Up and Running

Albany Times Union – Rick Karlin | Published: 9/27/2014

Lobbyists in New York are now able to take an online ethics training course that was mandated in a 2011 law. Registered lobbyists are supposed to complete the course by the end of December. While there is not a clear-cut penalty for failing to do so, the Joint Committee on Public Ethics said it will monitor compliance.

Ohio – Panel Refers Rep. Mallory for Ethics Prosecution

Columbus Dispatch – Jim Siegel | Published: 10/1/2014

The Ohio Joint Legislative Ethics Commission recommended state Rep. Dale Mallory face charges for accepting Cincinnati Bengals tickets from lobbyists and failing to disclose the gifts. The commission found Mallory wrongfully accepted a $77 ticket in 2009 and nearly $284 worth of tickets in 2013. Two lobbyists have already pleaded guilty to not reporting that they gave Mallory the tickets. John Rabenold was fined $2,000 for not disclosing gifts to state lawmakers, including a ticket he gave Mallory for a Bengals game in December 2009. George Glover was fined $500 after he did not disclose or keep receipts for a 2013 Bengals ticket he gave to Mallory.

Pennsylvania – Allegheny Authority Bends Limits on Free Tickets for Pro Sporting Events

Pittsburgh Tribune-Review – Aaron Aupperlee | Published: 9/29/2014

The Pittsburgh Tribune-Tribune said the municipal authority that oversees public sports and entertainment venues in Allegheny County routinely violates its policy to limit the number of free tickets it gives to public officials, and it often does not record who uses its seats or luxury suites at games. “People call and they need them for goodwill; I’ll get them and give them to them,” state Sen. Wayne Fontana, board chairperson of the Sports & Exhibition Authority.

Texas – DeLay’s Decade-Long Legal Fight Comes to an End

Houston Chronicle – Lauren McGaughy | Published: 10/1/2014

Texas’ highest criminal court upheld a lower court’s ruling overturning former U.S. House Majority Leader Tom DeLay’s 2010 conviction for money laundering. DeLay had been found guilty of channeling $190,000 in corporate political donations to Republicans running for the Texas Legislature in 2002 as part of a push to redraw congressional district lines in the state. Texas election law prohibits corporate campaign contributions to state candidates. The Court of Criminal Appeals ruled DeLay was not guilty because Travis County prosecutors could not prove he believed the corporate funds he was funneling to state candidates were “criminal proceeds.”

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.

Lobbying

“House Energy Committee counsel leaves to lobby” by Timothy Cama in The Hill.

“Russian investment fund hires K Street help” by Megan R. Wilson in The Hill.

“Left embraces boycott politics” by Julian Hattem in The Hill.

Campaign Finance

Colorado: “Colorado judge: State political parties can form Super PACs” by Tessa Cheek in the Colorado Independent.

Florida: “U.S. Supreme Court to hear former Hillsborough judicial candidate’s fundraising issue” by Jim Saunders in the Tampa Bay Times.

Vermont: “Transparency challenge is back: Candidates, please send us your campaign finance filings in excel format” by Anne Galloway in VTDigger.org.

Wisconsin: “Group sues state in hopes of collaborating with candidates” by Patrick Marley in the Journal Sentinel.

Ethics

“Is the Senate Ethics Committee Working?” by Sarah Mimms and Billy House in National Journal.

Alabama: “Ethics Commission OKs city contract with Quinton Ross” by Brian Lyman in the Montgomery Advertiser.

Florida: “Nearly 3 years prison for Ponzi schemer ex-partner” by The Associated Press in WJXT News.

New York: “NY legislator charged with using campaign funds for personal expenses, filing false claims” by Michael Virtanen (Associated Press) in The Republic.

Ohio: “Ethics charges recommended against Ohio Rep. Dale Mallory for gifts from lobbyists” by Jeremy Pelzer in the Cleveland Plain Dealer.

Texas: “Texas Court Upholds Ruling Overturning DeLay’s Conviction” by Nathan Koppel in The Wall Street Journal.

Elections

“The Race for Attorney General Tightens Up in 9 States” by Louis Jacobson in Governing.

Alaska: “GOP surges in Alaska Senate race” by Cameron Joseph in The Hill.

North Carolina: “Court Blocks Parts of North Carolina Voting Law” by Maya Rhodan in Time.

Political Advertising

“Could a Four-Second Mistake Cost a Candidate Thousands of Dollars?” by Nathan L. Gonzales in Roll Call.

Tech and Social Media

“Survey: LinkedIn Lacks Appeal for Hill Staffers” by Rebecca Gale in Roll Call.

The U.S. Supreme Court agreed today to hear the case of a former Florida judicial candidate disciplined for violating state law by soliciting campaign contributions in 2009. Lanell Williams-Yulee, who ran for county court judge in Tampa, argues the law violates her right of free speech.

Currently, Florida and 29 other states prohibit judicial candidates from personally soliciting campaign contributions. Courts are split on the issue with some saying such bans protect the integrity of the courts by ensuring judges remain impartial upon winning election.

A ruling is expected in June 2015.

A suit filed by the Republican parties of New York and Tennessee challenging the Securities and Exchange Commission’s (SEC) Pay-to-Play rule has been dismissed by the U.S. District Court for the District of Columbia. The court held it did not have jurisdiction and the proper court to hear the case is the D.C. Circuit Court of Appeals.

The plaintiffs alleged SEC Rule 206(4)-5, which imposes restrictions upon investment advisors and their covered associates making contributions to officials of state and local government entities, violates the freedom of speech protections of the First Amendment. The suit also took the position the SEC does not have the authority to regulate campaign contributions.

Lobbying

“Lobbying World” in The Hill.

“Cornerstone builds out from K Street” by Megan R. Wilson in The Hill.

California: “California bans political fundraising parties at lobbyists’ homes” by Reuters on KFGO News.

Kentucky: “Ethics Reporter: Lobbying spending hits all-time high during first eight months of 2014” on KyForward.

Campaign Finance

“Final third-quarter fundraising emails: Doom, gloom and outrage” by Peter Sullivan in The Hill.

“Expand the ‘Super PAC Tax’” by Walter Shapiro in the Brennan Center for Justice Blog.

Maryland: “Montgomery Council approves plan for public finance of local campaigns” by Bill Turque in The Washington Post.

Ethics

“Ethics Office Finds Evidence Petri Violated House Rules” by Emma Dumain in Roll Call.

“Ethics panel: ‘Substantial reason’ to believe Rep. Petri broke rules” by Mario Trujillo in The Hill.

“Larry Craig fined for misuse of campaign funds” by John Bresnahan in Politico.

California: “Jerry Brown vetoes California political ethics bills” by David Siders in the Sacramento Bee.

Florida: “City hires new ethics officer” by TaMaryn Waters in the Tallahassee Democrat.

New York: “NY panel cites campaign limits on state workers” by The Associated Press in The Legislative Gazette.

New York: “Ethics panel now has two vacancies to fill” by Rick Karlin in the Albany Times Union.

Elections

“GOP sets sights on bigger House gains” by Alex Isenstadt in Politico.

“Democrats make risky bet against GOP Leader Mitch McConnell” by Alexander Bolton in The Hill.

“Incumbent governors fear wipeout” by James Hohmann in Politico.

California: “San Jose Election Tests Political Risk of Cutting Pensions” by J.B. Wogan in Governing.

Louisiana: “Gallup: Louisiana shifts Democratic” by Kendall Breitman in Politico.

Tech and Social Media

“Government, the Last Great Technology Skeptic” by Camille Tuutti in Nextgov.

“These maps show the Internet is getting faster in (almost) every state” by Niraj Chokshi in The Washington Post.

The state ethics commission met September 30, 2014, for the first public meeting following the firing of former Executive Secretary Holly LaBerge. The commission closed 14 complaints against officials and candidates, approved three new advisory opinions, and discussed the agency’s future.

New staff attorneys Robert Lane and Bethany Whetzel have identified nearly 200 open ethics cases needing processed.

The commission will continue to consider recently drafted amendments to campaign and lobbying rules with the hope of passing the amendments by the end of the year. The amendments will clarify campaign reporting thresholds, permit gift splitting by lobbyists, and require reporting of gifts to family members of officials.