Lawmakers ended a special session shortly after midnight on Wednesday, July 2, 2014. The House and Senate gave approval to a package of bills regarding teacher health insurance premiums, prison overcrowding, and limits on lottery monitor games.

Photo of Arkansas State Capitol Building by Stuart Seeger on Wikimedia Commons.

Without any official announcement, the U.S. House Ethics Committee quietly removed the requirement that privately sponsored travel be revealed in House Members’ annual financial disclosure forms.

However, when the removal of this requirement was revealed by the National Journal on June 30, it caught national attention and generated strong responses. In a press release from the Campaign Legal Center, Policy Director Meredith McGehee said, “With public confidence in the U.S. Congress reaching a record low of 7%, according to yesterday’s Gallup poll, you would think the House Ethics Committee would focus on building public confidence in the institution, rather than looking for ways to make their dirty laundry harder to find.”

According to the National Journal, House Minority Leader Nancy Pelosi said the change “must be reversed.”

Supporters of the change argue the reporting is merely duplicative because the travel must still be reported by members to the House Office of the Clerk.

Lobbying

“Lobbying World” in The Hill.

“Clark Hill adds two in public affairs” by Byron Tau in Politico.

“#Modernlobbying: Why bankers are tweeting for regulatory relief” by Mark Holan in Washington Business Journals.

Virginia: “Taxicab industry has history of lobbying, donations” by Kathryn Watson on Watchdog.org.

Campaign Finance

“Shedding New Light on Dark Money” by Timothy Karr on The Huffington Post.

“Campaign finance laws vary widely from state to state, report says” by Patrick Marley in the Journal Sentinel.

“How Cozy Can Candidates Be With Political Groups? It All Depends” by Rachel Baye (Center for Public Integrity) on NBC News.

Massachusetts: “Gubernatorial candidates back campaign disclosure bill” by Jim O’Sullivan in The Boston Globe.

Montana: “Super PAC spending $1.7M in Montana Senate race” by The Associated Press in the Billings Gazette.

Wisconsin: “Wisconsin among several states with dust-ups over campaign coordination with outside groups” by Bill Leuders in WisconsinWatch.org.

Ethics

“Congress Quietly Deletes a Key Disclosure of Free Trips Lawmakers Take” by Shane Goldmacher in National Journal.

“Pelosi to Ethics panel: Require lawmakers to report free trips” by Mike Lillis in The Hill.

Missouri: “Streetcar ethics complaint goes away — for now” by Austin Alonzo in the Kansas City Business Journal.

New York: “New York State Senator Indicted” by Erica Orden and Sean Gardner in The Wall Street Journal.

West Virginia: “Tomblin names members of new Ethics Commission” by Phil Kabler in the Charleston Gazette.

Government Tech and Social Media

“Governments Struggling to Get Social Media Right” by Jonathan Walters in Governing.

“DigitalGov rolls out 3 new social media toolkits in quest for ‘social government’” by Greg Otto in FedScoop.

“The Looming Crisis in Voting Technology” by J.B. Wogan in Governing.

Tom Homer stepped down from his post as legislative inspector general at the end of June. Homer, an advocate for modern ethics reform, took the job in 2004 and served as the state’s first and only legislative watchdog.

It is unclear who will replace him; the inspector general is appointed by a resolution approved by three-fifths majorities in both houses of the General Assembly.

Photo of Illinois State Capitol by Martin Haase on Wikimedia Commons.

The 147th Delaware General Assembly adjourned sine die Tuesday, July 1, 2014. In keeping with longstanding Delaware tradition, legislators worked into the early hours of the morning attempting to pass dozens of bills before the end of the session. Noteworthy among those bills are measures to provide $10 million in relief to the state’s three ailing casinos and to toughen penalties on DUI offenders.

Lobbying

“LobbyIt: Aiming to be everyman’s lobbyist” by Catherine Ho in The Washington Post.

“The Influence Industry: Ex-Im Bank renewal, a familiar issue on K Street, divides GOP” by Holly Yeager in The Washington Post.

Rhode Island: “Ex-RI House speaker Fox’s personal loan from registered lobbyist still unpaid” by W. Ray Malinowski in the Providence Journal.

Campaign Finance

Indiana: “Terre Haute’s Jim Bopp Jr. a conservative titan” by Mark Bennett in the Sacramento Bee.

Ohio: “GOP donor found not guilty on campaign finance charges, guilty of obstruction” by Joe Vardon in the Columbus Dispatch.

Ethics

California: “SF open government and ethics oversight broken, report says” by Jonah Owen Lamb in The Examiner.

Illinois: “Closer Look: Ill. legislative watchdog steps down” by The Associated Press in The Washington Examiner.

Kentucky: “Legislative caucuses rely on PACs, reports show” by Tom Loftus in The Courier Journal.

New York: “Three months after Gov. Cuomo pulled plug on Moreland Commission, executive director still being paid” by Ken Lovett in the NY Daily News.

North Carolina: “Former FBI agent Chuck Stuber opens up about corruption cases against NC politicians” by J. Andrew Curliss in the News & Observer.

Wisconsin: “No Conclusion in Inquiry Into Scott Walker’s Campaign Fund-Raising” by Monica Davey in The New York Times.

National Conventions

Ohio: “Cleveland should learn fate of Republican National Convention bid no later than early August” by Henry J. Gomez in the Plain Dealer.

Government Tech and Social Media

“Mistaken Identity: People Angry at Supreme Court Decision Vent at Blog” by Chris Taylor on Mashable.

California: “California governor signs bill to bring bitcoin and other currency into fold” in Reuters.

On July 1, the maximum value for food, drink, or refreshment an individual may provide to an elected official or public employee in Louisiana for a single event increases from $57 to $58.

This threshold value is adjusted each year by the Board of Ethics to reflect changes in the consumer price index.

Lobbying

Florida: “Florida lobbyists to hold annual industry summit Sept. 3-5 in Tampa” in Saint Peters Blog.

Minnesota: “Capitol Chatter: Greater Minnesota cities’ group leads in lobbying costs” by Don Davis in the Morris Sun Tribune.

Rhode Island: “State postpones hearing into possible lobbying violations against lawyer” on WJAR NBC News.

Campaign Finance

“Candidates Rush to Collect Funds by June 30th Deadline” by Kent Cooper in Roll Call.

California: “FPPC hands down fines for area campaign finance violations” in Los Angeles Wave News.

California: “Oakland tries to close campaign finance loophole” by Matthew Artz in the Contra Costa Times.

Delaware: “Campaign-finance bills go to governor” by Jon Offredo in The News Journal.

Maryland: “Does increased campaign spending sway odds of winning?” by Phil Davis on DelmarvaNow.com.

Massachusetts: “Super PAC aims to end all other super PACs” by Akilah Johnson in The Boston Globe.

Ohio: “Jury deliberations to begin in Ben Suarez campaign finance case” by Phil Trexler in the Akron Beacon Journal.

Wyoming: “Wyoming group sues over campaign finance laws” on KGWN CBS News.

Ethics

“Rangel wrangled in potential ethics probe?” by Tim Devaney in The Hill.

Arizona: “Horne hires political backers to investigate his office” by Howard Fischer in the Arizona Daily Star.

Arkansas: “Arkansas judge fined in campaign-gifts case” by The Associated Press in The Washington Times.

California: “O.C. Grand Jury again calls for ethics commission” by Adolfo Flores in the Daily Pilot.

Florida: “Ex-partner of Ponzi schemer gets 2 ½ years” by The Associated Press in the Connecticut Post.

Virginia: “Changing laws in Virginia take effect Tuesday” by Bill Sizemore in The Virginian-Pilot.

Government Tech and Social Media

Oregon: “Oregon website breach: State officials failed to patch ‘high risk’ software problem” by Yuxing Zheng in The Oregonian.

Texas: “City Responds to Negative Tweets with Humor” by Kristi Dalton on Government Technology.

On October 14, 2014, New Jersey will implement State of the Art Requisition Technology (NJSTART), a new eProcurement system designed to simplify the procurement process, drive efficiency, and promote competition. The system’s online business directory will be accessible by all state agencies, suppliers, and local governments. Vendors will be able to create individual profiles, receive email alerts for upcoming procurement opportunities, submit proposals, and access training manuals and reference guides.

NJSTART will replace the 25-year-old mainframe system and will allow vendors to access their profiles in real time at any time of day.

Early enrollment is available for vendors who would like to be properly registered when the new system goes live. Because vendors will only be paid if they are registered in the system, vendors on existing contracts are strongly encouraged to register in the system prior to October.

National:

Wisconsin Governor Scandal Shows States as New Front in Fight for Dark Money Disclosure

Sunlight Foundation – Stan Oklobdzija | Published: 6/25/2014

As prospects for any regulations at the federal level seem murky at best, it appears the fight against clandestine political donors may be leaving Washington, D.C. and entering statehouses around the country. The Sunlight Foundation reported that at least 18 bills introduced during the most recent legislative sessions in various states would impose new disclosure rules or amend existing regulations regarding independent expenditures.

Federal:

Thousands of Missing Emails at IRS: What’s it all about?

Los Angeles Times – Joseph Tanfani | Published: 6/24/2014

IRS Commissioner John Koskinen disclosed that emails sent by Lois Lerner, the former director of the agency’s division that oversaw tax-exempt groups, were lost when her computer hard drive crashed in 2011. Koskinen told Congress that eight other hard drives from potential recipients had crashed as well. Republicans have seized on the missing emails, alleging in hearings that their disappearance is evidence of a cover-up by the IRS over a scheme to target conservative nonprofits seeking tax exempt status.

Venture Capital Firm Settles S.E.C. Charges over ‘Pay-to-Play’

New York Times – William Alden | Published: 6/20/2014

TL Ventures agreed to pay almost $300,000 to settle charges it violated the Securities and Exchange Commission’s “pay-to-play” rules. The SEC prohibits investment firms from providing paid services to a government client for two years after a contribution by the firm or an employee to candidates or officials who could influence the management of public assets. The agency said TL Ventures continued to receive advisory fees from the city and state pension funds immediately following campaign donations made by an associate in 2011 to the Pennsylvania governor and a candidate for mayor of Philadelphia.

From the States and Municipalities:

Florida – Unknown Candidate for Governor with Questionable Donations Asks State for Public Campaign Money

Naples Daily News – Matt Dixon | Published: 6/20/2014

Obscure Florida gubernatorial candidate Yinka Adeshina has received 12 campaign contributions worth $3,000 from an address listed as 400 West Park in Tallahassee. But that address would fall in the middle of Tallahassee’s Old City Cemetery. Another six contributions worth $1,500 came from donors who share an address with a Best Buy. Adeshina lists a total of $182,080 in donations, which would make her eligible to receive nearly $100,000 in public funds for her campaign.

Georgia – Changes Ahead for Ga. Ethics Commission

Macon Telegraph – Christina Cassidy (Associated Press) | Published: 6/21/2014

The Georgia ethics commission has been mired in staffing issues, lawsuits, and allegations of outside influence. Now that the commission has opted to avoid what could have been a lengthy court battle and settle with three former employees, a key question is whether the agency will finally begin to make progress on more than 100 cases that have remained opened for months and sometimes years. The commission hopes to jumpstart the process of resolving cases by hiring up to two staff attorneys in the next month or two.

Hawaii – An Inside Look at the Hawaii Super PAC That Helped Defeat Cayetano

Honolulu Civil Beat – Nick Grube | Published: 6/19/2014

PRP, an advocacy group for the Hawaii Carpenters Union and contractors, spent more than $3 million in 2012 to dismantle Ben Cayetano’s Honolulu mayoral campaign and keep the city’s $5.26 billion rail project on track. Emails obtained as part of Cayetano’s defamation lawsuit against the group provide an unprecedented glimpse of the behind-the-scenes operations of one of Hawaii’s most powerful independent expenditure committees. Such groups are allowed to receive and spend unlimited amounts of money on political campaigns.

Illinois – Event Honoring Quinn Raises ‘Pay to Play’ Issues

Washington Times – Carla Johnson (Associated Press) | Published: 6/20/2014

The Roosevelt Group, a lobbying firm with close ties to a key subcontractor hired to promote the nation’s health care law in Illinois, hosted a fundraiser for the Democratic Governors Association (DGA) “honoring Pat Quinn,” according to an invitation that lists suggested sponsorship levels of between $2,500 and $20,000. The DGA formed a PAC last fall to support Quinn’s re-election as governor. Critics said the event raises questions about “pay-to-play” in the state’s highly competitive governor’s race.

Indiana – IEDC Contractor Steers Indiana Investment Funds to Firms Run by Its Chairman and His Son

Indianapolis Star – Alex Campbell | Published: 6/19/2014

In 2011, Indiana hired the private nonprofit Elevate Ventures to choose startup companies to receive taxpayer dollars. An Indianapolis Star investigation has uncovered possible conflicts-of-interest in the arrangement, which has triggered a federal probe. The newspaper discovered a company run by Elevate founder Howard Bates received $500,000 in state money from an Elevate-run fund. Elevate was authorized to distribute the money to the companies connected to Bates without state approval, despite the fact it was public money.

Massachusetts – House Supports Super PAC Disclosure Bill, Boosts Donation Limits

MassLive.com – Colleen Quinn (State House News Service) | Published: 6/25/2014

The Massachusetts House passed legislation that would require corporations, labor unions, and other entities to disclose expenditures in statewide, county, or local races, as well as the sources of their funding, within seven days. The top five donors to an independent expenditure group would also have to be listed in the organization’s television or newspaper advertisement. House Bill 4226 raises the individual limits on annual campaign contributions for any one candidate from $500 to $1,000.

Mississippi – How Cochran Bounced Back from Disaster

Politico – Alexander Burns | Published: 6/25/2014

Following Mississippi’s June 3 Republican primary, U.S. Sen. Thad Cochran’s staff members were crestfallen at the results of an election that deprived the incumbent of an electoral majority. With Cochran forced into a run-off against an aggressive and energetic challenger, a dark mood shadowed his backers in Washington and Mississippi. Yet almost immediately, the Cochran coalition began bouncing back. One aide paraphrased Cochran adviser Stuart Stevens’ primary-night message: “We’re going to figure this out and it’s going to be something you remember for the rest of your life.”

Nebraska – Lobbying Report Shows Millions Spent to Influence State Senators

Lincoln Journal Star – JoAnne Young | Published: 6/20/2014

A report by Nebraska Common Cause said special interests spend nearly $14 million a year to influence state lawmakers. But the watchdog maintains it is difficult to measure the full impact of lobbying money on the Legislature. Senators must report only gifts valued over $100. The companies and organizations that hire lobbyists only report total expenditures; food and beverages are exempt. And golf outings, luncheons, holiday gifts, birthday gifts, wedding presents, and tickets to events are difficult to track to specific senators, said the report.

South Carolina – SC Ethics Reform Bill Dies

The State – Andrew Shain | Published: 6/19/2014

South Carolina’s legislative session ended without the Senate voting on an ethics reform measure that Republicans who took the podium to run out the clock denounced as too watered down. The bill’s key components required officeholders to disclose all of their income sources, though not the amounts, and required third-party groups raising money to defeat or elect candidates to disclose their donors and expenses. An ethics bill can be reintroduced in January when a new session begins.

Virginia – Va. Officials Skeptical of U.S. Interest in Phillip Puckett’s Resignation from State Senate

Washington Post – Laura Vozzella, Matt Zapotosky, and Jenna Portnoy | Published: 6/19/2014

Federal investigators have interviewed officials and sought documents in connection with the resignation of then-state Sen. Philip Puckett, which handed Republicans control of the Virginia Senate at a critical time and was connected to job prospects for him and his daughter. Puckett said there was no quid pro quo but withdrew his name from consideration for a top job with the state tobacco commission. But even some of Puckett’s most prominent critics expressed mixed feelings about a federal inquiry into a matter that many considered unseemly but not criminal.

Wisconsin – Conservative Group Targets State’s Political Committee Donation Limits

Wisconsin State Journal – Matthew DeFour | Published: 6/24/2014

A federal lawsuit has been filed challenging a Wisconsin law that limits the aggregate amount of money candidates can collect from PACs. The Wisconsin Institute for Law and Liberty (WILL) filed the lawsuit on behalf of the political arm of conservative group CRG Network. CRG argues its First Amendment rights to free speech and free association have been denied because of the limits. The institute’s legal team previously won a case challenging the cap on aggregate donations by individuals.

Wisconsin – Scott Walker Case Shows Growing Closeness between Politicians and Wealthy Allies

Washington Post – Matea Gold and Tom Hamburger | Published: 6/23/2014

The investigation of Wisconsin Gov. Scott Walker and his allies over alleged illegal coordination has been challenged as unconstitutional, and it is unclear if it will proceed. Still, the inquiry is being watched closely by campaign strategists and legal experts as a major test of what practices cross the line in the loosely governed and increasingly murky area of big-money politics. The growing influence of super PACs and politically active nonprofits, which can raise unlimited funds, has eroded the once-thick wall between official campaigns and outside interest groups.

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Lobbying

“Lobbying World” in The Hill.

“Under Contract” in The Hill.

Campaign Finance

“Karl Rove and the Modern Money Machine” by Kenneth Vogel in Politico.

Louisiana: “Gov. Jindal signs campaign finance reforms into law” by Tom Wright on WVUE Fox News.

Massachusetts: “House supports super PAC disclosure bill, boosts donation limits” by Colleen Quinn on MassLive.com.

Ohio: “Prosecutor: Ohio man knew donations were illegal” by The Associated Press on WSYX ABC News.

Ethics

“Ethics panel defers Michael Grimm probe” by John Bresnahan in Politico.

Alabama: “Ethics Commission to search for new leader; AL senator expresses interest” by Max Reiss on WSFA News.

Georgia: “Former State Ethics Commission Secretary: The System Is Broken” by Ellen Reinhardt on Georgia Public Broadcasting.

Congress

“With 28 Days Left, What Can Congress Do?” by Molly O’Toole in Defense One.

National Conventions

“Cleveland, Dallas make cut for GOP convention” by James Hohmann in Politico.

Government Tech and Social Media

“Jason Chaffetz: Tech’s pace ‘scares a lot of members of Congress’” by Alex Byers and Jody Serrano in Politico.

Montana: “State notifies 1.3 million people whose data were in hacked computer” by Mike Dennison in the Independent Record.

The Hawaii State Ethics Commission, in a 3-2 vote on June 18, approved new guidelines for lawmakers to follow in an effort to regulate the spending of their annual allowance.

Each legislator receives almost $12,000 each year to cover incidental expenses related to legislative duties.

The legislative leadership welcomed the recommendations and will consider revising their current rules, despite failing to acknowledge the commission’s jurisdiction with regard to the matter.

In an ongoing battle for independence, the Honolulu Ethics Commission sent a letter to Mayor Kirk Caldwell highlighting the latest affront by corporation counsel and asking the administration to demonstrate its commitment to a strong ethics program.

The letter mentioned commission plans to investigate city employees suspected of getting paid for work they did not do. The suspected fraud is estimated to cost the city a quarter of a million dollars per year, and the commission requested authority to purchase a $600 GPS tracking device to use as part of its investigation. Donna Leong, the city’s corporation counsel, took five weeks to conditionally approve the purchase, by which time the investigative window had closed.

The Caldwell administration did not respond or comment on the letter; it will likely be discussed at the June 26 Ethics Commission meeting.

Paula Sophia, the first openly transgender officer in Oklahoma City Police Department history, is vying to become the state’s first openly transgender legislator. Sophia received enough votes in Tuesday’s primary to force a runoff for the Democratic nomination to represent Oklahoma House District 88.

Sophia will face former pastor Jason Dunnington in an August 26 runoff. There is no Republican challenger; the winner will bypass the general election as a member of the state legislature.