Gov. Rick Scott signed Senate Bill 846 into law on Friday, June 20, 2014. The ethics bill takes effect July 1, 2014 and requires lobbyists at Florida’s five water management districts to register and file periodic reports with the Lobbyist Registration Office of the Florida Legislature.

The original version of the bill would have required lobbyist registration for individuals seeking to influence any of the 136 independent special districts statewide. Such independent special districts include water management districts, hospital districts, and any other independent special district that exercises ad valorem taxing authority. The final version, however, only requires lobbyist registration for individuals seeking to influence Florida’s water management districts.

Rep. Kathleen Passidomo considered the original version of the bill too broad, thus revising the bill in committee to only impose lobbyist registration on water management districts. Passidomo has said if registration works smoothly at the water districts, the Legislature may consider requiring more special districts to register lobbyists.

Here is our July – August calendar. If you are attending any of the coming events, please stop by and say hello!

June 25, 2014  WGR Toastmasters, Washington, D.C.

July 10-13, 2014   National Governors Association Meeting, Nashville, Tennessee

July 13-16, 2014   CSG Midwestern Legislative Conference, Omaha, Nebraska

July 14, 2014   WGR Toastmasters, Washington, D.C.

July 23, 2014   IACREOT Conference, Bonita Springs, Florida

July 23-25, 2014   NCSL Legislative Leadership, Washington, D.C.

July 28, 2014   WGR Toastmasters, Washington, D.C.

August 3-6, 2014   CSG/Eastern Regional Conference Annual Meeting, Baltimore, Maryland

August 9-13, 2014 CSG National & CSG West Annual Conference, Anchorage, Alaska

August 19-22, 2014   NCSL Legislative Summit, Minneapolis, Minnesota

The General Assembly concluded its session and recessed on June 21, 2014.

Any bills submitted to Gov. Lincoln Chafee must be signed or vetoed by July 1.

There is no pocket veto.

Photo of the Rhode Island State Capitol courtesy of Garrett A. Wollman on Wikimedia Commons.

Lobbying

“Bottom Line” in The Hill.

“In the trenches of global trade” by Vicki Needham in The Hill.

Minnesota: “Local government lobbying costs increased to $8 million in 2013” by Rachel E. Stassen-Berger in The Star Tribune.

New York: “NY ethics and lobbying commission creates tip line” by The Associated Press in the Utica Observer Dispatch.

Campaign Finance

“A New Era for Pay-to-Play” by Jason Abel on Rick Hasen’s Election Law Blog.

“Scott Walker case shows growing closeness between politicians and wealthy allies” by Matea Gold and Tom Hamburger in The Washington Post.

District of Columbia: “Smith, former Ward 1 D.C. Council candidate, pleads guilty in campaign finance scheme” by Keith Alexander in The Washington Post.

Mississippi: “Outside Spending, Dark Money Pour into Mississippi Runoff” by Ian Vendewalker in the Brennan Center for Justice Blog.

Ethics

Hawaii: “Honolulu Ethics Commission Complains of Affronts to Its Independence” by Sophie Cocke in the Honolulu Civil Beat.

Virginia: “Va. House tosses out Gov. McAuliffe’s vetoes on Medicaid, judges; GOP reorganizes state Senate” by Alan Suderman (Associated Press) in The Republic.

Elections

“6 Things to Watch in Tuesday’s Primaries” by Abby Livingston in Roll Call.

State Legislatures

Arkansas: “Arkansas Legislature: Special Session Discussions Down To Lottery” by John Lyon in the Times Record.

Hawaii: “Hawaii Gov. Neil Abercrombie says he intends to veto 10 bills” by Braelyn Wood in Pacific Business News.

New York: “Winners and Losers in NY State’s 2014 Legislative Session” by The Associated Press in the Epoch Times.

Government Tech and Social Media

“Google+ is Here to Stay, Company Exec Says” in Government Technology.

House Bill 735, signed by the governor on June 16, 2014, made changes to the lobbyist fee structure. Effective July 1, 2014, the initial registration fee for lobbyists and lobbyist employers will increase from $25 to $60. The employer fee for each additional lobbyist will increase from $5 to $15. The lobbyist fee for each additional employer will also increase from $5 to $15.

Senate Bill 86 was amended this year to include additional changes to the state’s lobbying law. Effective July 1, 2014, the Secretary of State’s Office will no longer mail disclosure forms to lobbyists and employers. Forms will be made available on the website no later than 30 days prior to the deadline.

Additionally, contracts with legislators or administrative officials are no longer treated as a type of expenditure and will be reported on their own line on the form.

A federal lawsuit has been filed to challenge the state law limiting campaign contributions to candidates from political action committees (PACs).

The CRG Network (CRG), a PAC working to elect conservative candidates, filed the lawsuit in the Milwaukee U.S. District Court against the state Government Accountability Board. CRG argues its rights to free speech and free association have been denied because of PAC contribution limits.

The Wisconsin Supreme Court upheld the law in 1990, but subsequent U.S. Supreme Court rulings may make the earlier state Supreme Court case irrelevant.

Lobbying

“K Street powerhouse loses founding partner” by Megan R. Wilson in The Hill.

“Is Akin Gump the New King of K Street?” by Marisa M. Kashino in the Washingtonian.

“Lobbyists want spot on Team Scalise” by Megan R. Wilson in The Hill.

“K Street hits the jackpot with casino magnate” by Julian Hattem in The Hill.

Campaign Finance

“Study Examines Role Of Citizens United Ruling On Politics” by Jim Letizia on WCBE.

“National Party Committees Report May Financial Figures” by Kent Cooper in Roll Call.

Alaska: “APOC staff says Anchorage mayor broke campaign finance law, proposes $187.50 fine” by Nathaniel Herz in the Anchorage Daily News.

Oklahoma: “Election Records: ‘Dark-Money,’ Campaign Groups Have Close Connections” by Oklahoma Watch & Clifton Adcock in KGOU.

Ethics

“‘Ms. Ethics’ Carol Dixon Remembered Fondly (Video)” by Colin Diersing in Roll Call.

“Don Young Must Repay $59K for Improper Trips/Gifts” by Kent Cooper in Roll Call.

Florida: “New Miami-Dade task force to target state public corruption” by David Ovalle in the Miami Herald.

Georgia: “Ethics commission to get new member” by Aaron Gould Sheinin in The Atlanta Journal-Constitution.

Virginia: “Virginia governor Terry McAuliffe vetoes funds for ethics commission” by Rachel Weiner in The Washington Post.

Wisconsin: “Report: Scott Walker Accused of Campaign Finance ‘Criminal Scheme’” by Mark Murray in NBC News.

Wisconsin: “Scott Walker and campaign-finance law: Just how dodgy?” in The Economist.

Elections

“Democrats Playing Defense in 2014 State Legislative Races” by Louis Jacobson in Governing.

Oklahoma: “Is Oklahoma Senate headed for a runoff?” by Cameron Joseph in The Hill.

Government Tech and Social Media

“How the White House’s We the People E-Petition Site Became a Virtual Ghost-Town” by Dave Karpf in TechPresident.

“Awareness, Tech Projects are Top Crowdsourced Goals in Government, Study Says” in Government Technology.

EU: “Lobbyists increasingly look online to influence EU policy” in Euractiv.

The Board of Supervisors passed amendments to the city’s lobbying law at a meeting on June 17, 2014. Ordinance 130374 expands the definition of “lobbyist” and requires random audits of lobbying reports.

The lobbying exemption for contractors and their attorneys will be limited to in-house officers and employees. Meeting the definition of a lobbyist will now depend on the number of compensated contacts with a covered official rather than the level of compensation received. Outside consultants communicating with public officials regarding contract bidding and negotiating will be subject to the registration and reporting requirements of lobbying.

The ordinance will be effective 30 days following Mayor Ed Lee’s signature.

A June 24 federal runoff has been scheduled for the Mississippi Republican Senate primary. Incumbent Sen. Thad Cochran and state Sen. Chris McDaniel will battle again in a tea party vs. establishment showdown. With 49 and 49.5 percent respectively, neither candidate earned enough of the June 3 vote to secure the party nomination.

McDaniel, running on a platform of change, hopes to unseat the longtime incumbent. Cochran’s congressional tenure began in 1972; he then served three consecutive terms in the House and six consecutive terms in the Senate.

On June 18, the Kansas Ethics Commission dismissed a complaint accusing a candidate of soliciting contributions from lobbyists through social media, according to the Kansas City Star.

On May 1, while the Legislature was still in session, a Facebook page for former state Sen. Jean Schodorf’s campaign was posted seeking help to raise money for her political campaign for secretary of state. Clay Barker, the state GOP executive director, made a complaint after a lobbyist “liked” the page. State law prohibits candidates from seeking contributions from lobbyists while the Legislature is in session.

Schodorf told the Star the commission informed her they found no probable cause to believe she violated the law and dismissed the complaint.

Prosecutors claim Gov. Scott Walker was involved with a plan to illegally coordinate fundraising with outside conservative groups to help him and several Republican senators survive a 2012 recall election. In court documents recently unsealed, prosecutors detail a criminal scheme by Walker and top aides to circumvent state law by helping plan campaign spending by a dozen outside groups.

No charges have been filed against Walker or any of his staffers. The documents became public as part of an ongoing lawsuit by Wisconsin Club for Growth, a group at the center of the investigation. A federal appeals judge now is considering whether to permanently stop the investigation.

Photo of Gov. Scott Walker courtesy of Gage Skidmore on Wikimedia Commons.

National:

Population Shifts Turning All Politics National

New York Times – Ashley Parker and Jonathan Martin | Published: 6/15/2014

For all the talk about how partisan polarization is overwhelming Washington, there is another overlapping force at play: voters who are not deeply rooted in an area increasingly view politics through a generic national lens. It was newcomers from other parts of the country and even abroad to Virginia and Mississippi, more than any other voters, who most crucially rejected two influential Republican incumbents – House Majority Leader Eric Cantor and U.S. Sen. Thad Cochran – in recent primaries.

Federal:

Justices Say Public Workers Can Testify about Corruption

USA Today – Richard Wolf and Mary Orndorff Troyan | Published: 6/19/2014

The U.S. Supreme Court ruled unanimously that public employees are protected from retaliation when they testify in court about misconduct they observed on the job. Public employees who are called to testify are protected by the First Amendment just as other citizens are, and should not have to between “the obligation to testify truthfully and the desire to avoid retaliation and keep their jobs,” wrote Justice Sonia Sotomayor. The decision clarified previous rulings in which the court has said public employees have free-speech rights when they are acting as citizens, not when they are testifying to what they learned in their jobs or are required to speak about because of their specific duties.

Obama to Sign Order Barring U.S. Contractors from Job Bias Based on Sexual Orientation

Washington Post – Zachary Goldfarb and Juliet Eilperin | Published: 6/17/2014

President Barack Obama plans to sign an executive order barring federal contractors from hiring or firing employees based on their sexual orientation or gender identity. Obama is not expected to sign the order for weeks, as the White House finalizes details, including possible exemptions for religious nonprofit organizations. Administration officials said the president decided to act unilaterally in the absence of momentum for legislation with broader protections.

Soft Money’s Squishy Political Influence

New York Times – Derek Willis | Published: 6/18/2014

A report by Daniel Tokaji and Renata Strause of Ohio State University surveys the state of campaign finance and finds the relationship between candidates and like-minded independent groups is characterized by subtle cooperation, not outright coordination. For campaigns targeted by super PACs and other outside groups, the feeling is often one of helplessness. “It was like a giant poker game and I wasn’t even sitting at the table,” said a Senate campaign manager quoted in the report.

From the States and Municipalities:

Arizona – School Superintendent Huppenthal Acknowledges Anonymous Blog Posts

Arizona Republic – Cathryn Creno | Published: 6/19/2014

Arizona Superintendent of Public Instruction John Huppenthal said he is the author behind several anonymous blog posts that referred to welfare recipients as “lazy pigs” and Planned Parenthood as the cause of abortions among African-Americans. The comments date back to 2011 and were posted on political blogs. Huppenthal said he wrote them under different pseudonyms so he could have a more open dialogue without his position influencing the debate. Some experts say it is an ethical problem when elected officials do not state their opinions publicly.

Georgia – Ga. Settles with 3 Ex-Ethics Commission Employees

Washington Times – Christina Cassidy (Associated Press) | Published: 6/13/2014

The state has settled whistle-blower complaints by three former Georgia ethics commission employees for a total of $1.8 million. The settlements follow a jury verdict that awarded more than $1 million to a fourth employee, former commission Executive Secretary Stacey Kalberman. The state will pay $1 million to the panel’s former deputy, Sherry Streicker, $410,000 to former IT specialist John Hair, and $477,500 to former staff attorney Elisabeth Murray-Obertein.

Illinois – Billionaire Ken Griffin Gives Rauner Record-Breaking $2.5 Million

Chicago Sun-Times – Sandra Guy and Art Golab | Published: 6/13/2014

Billionaire hedge-fund founder Ken Griffin’s $2.5 million donation to the campaign of Republican Bruce Rauner has been termed the largest single donation in an Illinois governor’s race in the post-Watergate era. The limit on individual contributions is usually $5,300 in Illinois. But the law allows those caps to be lifted when contributions or loans from a candidate or candidate’s family surpass $250,000. Rauner gave $500,000 to his own campaign in November.

Massachusetts – Bill Would Increase PAC Disclosure

Boston Globe – Frank Phillips | Published: 6/18/2014

The Massachusetts Legislature is expected to pass a bill this summer that would increase disclosure requirements for super PACs. The bill would also double the amount of money individuals can give to state candidates from $500 to $1,000 a year, the first change to those limits in 20 years. The disclosure crackdown, also aimed at nonprofit advocacy groups that fund television ads, would go into effect immediately. The new individual donation limits would not take effect until next year.

Ohio – Lawmaker Might Face Charges over Gifts

Columbus Dispatch – Randy Ludlow | Published: 6/14/2014

Ohio Rep. Dale Mallory could face criminal charges for failing to disclose that lobbyist John Rabenold treated him to two meals and a Cincinnati Bengals game. Franklin County Prosecutor Ron O’Brien said Rabenold agreed to work with the FBI and Legislative Inspector General Tony Bledsoe in ongoing investigations into lawmakers who did not report gifts or accepted illegal gifts. The Joint Legislative Ethics Committee is expected to review the case and decide whether to make a referral to O’Brien for potential charges.

Ohio – U.S. Supreme Court Will Allow Constitutional Challenge of Ohio Law That Bars Campaign Lies

Cleveland Plain Dealer – Sabrina Eaton | Published: 6/16/2014

The U.S. Supreme Court allowed a challenge to an Ohio law banning lies in political campaigns to move forward. The court ruled two advocacy groups could challenge the state law that makes it a crime to make knowingly or recklessly false statements about political candidates that are intended to help elect or defeat them. Lower courts had dismissed the case, saying the organizations seeking to challenge it had not faced imminent harm sufficient to give them standing to sue. Justice Clarence Thomas, writing for the court, said the groups “have alleged a credible threat of enforcement” of the law and so were not barred from pursuing their challenge to it.

Pennsylvania – Improvements Seen in Phila. Lobbying Web Site

Philadelphia Inquirer – Alisha Green (Sunlight Foundation) | Published: 6/12/2014

The story of Philadelphia’s lobbying website highlights some of the problems that governments face with sharing this crucial data. Providing the information with enough detail and in a format that is easy to analyze and reuse is something few local jurisdictions have been able to accomplish so far. Philadelphia knew what it needed to do to improve lobbying transparency, but finding a way to implement those changes was the problem, according to an analysis by the Sunlight Foundation.

South Carolina – An Ethical Mess in South Carolina

The Center for Public Integrity – Corey Hutchins | Published: 6/17/2014

An ethics scandal involving the House speaker and difficulty in passing reform legislation are raising concerns about South Carolina’s legislatively dominated government structure, the efficacy of self-policing lawmakers, and the integrity of the state’s institutions. South Carolina earned an ‘F’ from the State Integrity Investigation, which graded states on their transparency, accountability, and risk for corruption. But despite calls for substantive reform from media, public interest groups, and the governor, the status quo remains.

Washington – Election Fallout: Judge says AG’s lawsuit against Grocery Manufacturers can move ahead

The Olympian – Brad Shannon | Published: 6/13/2014

A Thurston County judge rejected efforts by the Grocery Manufacturers Association to squelch a lawsuit in which Washington Attorney General Bob Ferguson accuses the trade association of laundering millions of dollars in last fall’s campaign. Ferguson has accused group of setting up a special fund to disguise the source of money spent to defeat Washington’s Initiative 522. But the judge scrap the state’s requirement that political committees collect at least $10 from 10 different registered voters in state before spending in a Washington campaign.

Washington – Legislative Ethics Board Weighs Limit on Free Meals from Lobbyists

The Olympian – Brad Shannon | Published: 6/17/2014

How often is “infrequent” when it comes to state lawmakers accepting free meals from lobbyists? Washington’s Legislative Ethics Board spent nearly two hours recently taking testimony on the issue and then grappling with the answer. So far, the board has considered several proposals, from as few as three meals annually to as many as 52 per year. It is currently taking comment from the public, lobbyists, and lawmakers before settling on a limit.

Wisconsin – Prosecutors Accuse Scott Walker of Running ‘Criminal Scheme’

Wisconsin State Journal – Mary Spicuzza | Published: 6/19/2014

Newly released documents show prosecutors allege Wisconsin Gov. Scott Walker was at the center of a nationwide “criminal scheme” to illegally coordinate with outside conservative groups. Prosecutors say Walker, his chief of staff, and others who worked for him were discussing illegal coordination with a number of national organizations and prominent figures, including Republican strategist Karl Rove, to fend off recalls targeting the governor and GOP state senators in 2011 and 2012.
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.

News You Can Use is a news service provided at no charge only to clients of our online Executive Source Guides, or ALERTS™ consulting clients.

Lawmakers adjourned sine die without passing the ethics reform bill on Thursday, June 19, 2014.

House Bill 3945 was blocked from a vote by Sen. Lee Bright and Sen. Tom Davis. On Wednesday, Lt. Gov. Glenn McConnell formally resigned to become president of the College of Charleston.

Senators then selected Sen. Yancey McGill to be the new lieutenant governor and Sen. Hugh Leatherman to be the new President Pro Tem.

Photo of the South Carolina State House by Florencebballer on Wikimedia Commons.

The Ohio Joint Legislative Ethics Committee recently issued an advisory opinion clarifying certain gift reporting requirements for members, candidates, and employees of the General Assembly. The opinion also applies to reports filed by any legislative agent providing a gift to a reportable person.

Advisory Opinion 2014-003 speaks to the value of a complimentary ticket to a charitable fundraiser where the source of the ticket is a third party. When provided by a third party, a complimentary ticket to a non-political fundraiser is a gift, the value of which is the portion of the ticket price that is not tax-deductible.

Furthermore, such portion accrues toward any applicable gift limit. Conversely, a ticket to a charitable fundraiser where the source is the entity holding the event is not considered a gift.