Lobbying

“Under Contract” in The Hill.

“MPAA’s Michael O’Leary steps down – Big 12 hires a lobbying firm” by Byron Tau in Politico.

Missouri: “Lobbyists’ gifts to Missouri lawmakers exceed $500,000” by Angela Mueller in the St. Louis Business Journal.

Campaign Finance

“BitPay, CoinVox Team Up to Allow Politicians to Accept Bitcoin” by Eric Calouro in NewsBTC.

Delaware: “Campaign finance reform bills languish in legislature” by Jonathan Starkey in The News Journal.

Massachusetts: “Bill would increase PAC disclosures” by Frank Phillips in the Boston Globe.

New York: “Blame Game After Push to Revamp Campaign Financing Ends” by Mike Vilensky in The Wall Street Journal.

North Carolina: “N.C. election laws ‘stuck in pre-computer age’” by Jim Morrill in the Charlotte Observer.

Vermont: “Advocacy group turns sights to money in politics” by Neal P. Goswami in the Rutland Herald.

Ethics

“Prosecutor asks court: Reinstate DeLay convictions” by Juan A. Lozano (Associated Press) in the Houston Chronicle.

“Grand Jury Probes Capitol Knowledge & Stock Trading” by Kent Cooper in Roll Call.

Hawaii: “Ethics Commission Tells Lawmakers How They Should Spend Allowances” by Nathan Eagle in the Honolulu Civil Beat.

Elections

New York: “This is what happens when a campaign finance scholar runs for governor” by Max Ehrenfreund in The Washington Post.

Wisconsin: “Jon Erpenbach drops appeal in email open records case” in the Journal Sentinel.

State Legislatures

South Carolina: “SC House OKs $12,000 pay raise for lawmakers, overriding Gov. Haley’s veto” by Cassie Cope in The State.

Lobbying

“Lobbying World” in The Hill.

Florida: “Dade Medical College owner charged with improper lobbying” by Mike Vasquez in the Miami Herald.

Mississippi: “Washington Lobbyists Pour Money Into Mississippi Senate Race To Fend Off Tea Party” by Paul Blumenthal in The Huffington Post.

Campaign Finance

“Soft Money’s Squishy Political Influence” by Derek Willis in The New York Times.

“Campaign-Finance Reform Has to Be Cross-Partisan” by Lawrence Lessig in The Atlantic.

Vermont: “Canvassers to target money in politics” by Terri Hallenbeck in the Burlington Free Press.

Ethics

Arizona: “Clean elections director seeks full probe of Arizona AG Tom Horne over election law complaint” by Bob Christie (Associated Press) in The Republic.

Georgia: “Advocates want ethics chief out” by Erica Techo in The Augusta Chronicle.

Government Tech and Social Media

“Democratic Strategist Chris Talbot Explains the Do’s and Don’ts of Digital Campaigns” by Tess VandenDolder in InTheCapitol.

“FBI discovers Twitter-speak, starts a dictionary” by Ian Sherr in C|Net.

Section 42.52.420 of the Revised Code of Washington allows public officials to accept gifts in the form of food and beverage on infrequent occasions. In recent months, “infrequent occasions” has come under scrutiny after a widely-read report showed the state’s 50 most active lobbyists treated legislators to meals totaling more than $65,000 over a four-month period.

After the Legislature failed to pass any pertinent legislation before its adjournment on March 13, 2014, the Legislative Ethics Board took up the issue. The board held a meeting on June 17, 2014, to review proposals received from the public related to how to define infrequent occasions.

All of the proposals considered by the board would require legislators to file a report upon receiving a free meal. Stricter proposals set the dollar amount threshold for reporting the meal at $5 and the amount of free meals per year at three to five. Others set the threshold at $25 and allow 52 free meals per year. One especially ambitious proposal would require a reduction in a legislator’s per diem allowance for every free meal he or she accepts.

The board will continue to take public comment on the issue and will reconvene on August 19, 2014, to further consider public proposals.

Lobbying

“Bottom Line” in The Hill.

Campaign Finance

California: “Senate approves campaign fundraising blackout during budget negotiations and end of session” by The Associated Press in the Daily Journal.

Ethics

“Watchdog urges bribery probe of congressman” by Mario Trujillo in The Hill.

New Mexico: “NM governor’s ex-aide pleads guilty to hacking charges” by Julian Hattem in The Hill.

Ohio: “Ohio Rep. Dale Mallory Named In Ethics Probe” by The Associated Press on WBNS TV News.

Rhode Island: “House panel passes revised ethics bill” by The Associated Press in the San Francisco Chronicle.

Elections

“Supreme Court: Groups Can Sue over Campaign Lies” by Julie Rovner in Governing.

The Colorado Supreme Court issued its decision today in Gessler v. Colorado Common Cause, upholding a lower court’s decision ruling Secretary of State Scott Gessler did not have the authority to raise campaign finance limits for political issue committees. In 2002, voters passed a constitutional amendment creating a $200 contribution and expenditure threshold for issue committee status. The provision required both retrospective and prospective contribution and expenditure reporting once issue committee status was achieved.

Gessler later promulgated Secretary of State Rule 4.1 to increase the threshold to $5,000 and eliminate retrospective reporting requirements. Because the secretary of state does not have the authority to promulgate rules in conflict with other provisions of law, the Court affirmed the appeals court judgment and set aside Rule 4.1.

Ohio Reps. Nick Celebrezze and Ronald Gerberry announced plans last week to introduce legislation creating a campaign contribution blackout for the attorney general’s office. New legislation would prohibit contributions to the attorney general and to any party-endorsed candidates for the office while the office is reviewing bids on contract work.

Celebrezze believes a blackout period will help eliminate the appearance of impropriety. Attorney General Mike DeWine, however, claims enforcement of the blackout periods makes the process inherently more political. Moreover, he said contributions have not influenced his decision to award contract work.

Q. To streamline LDA tracking and reporting, our company includes 100 percent of our in-house lobbyists’ compensation as lobbying on our quarterly report.  Is this a reasonable approach?

A. The LDA does not contain any special tracking requirements for reporting expenditures.  Registrants employing in-house lobbyists are required to provide a “good faith estimate of the total expenses” of their lobbying activities.  With the “good faith” standard as the back drop, an organization should determine whether including 100 percent of their lobbyists’ compensation meets that standard.  Aside from the tax implications of including 100percent of compensation, typically, there is some time that is spent during the course of a quarter that is not defined as lobbying and varies from month to month depending on what issues are being addressed.  Therefore, providing a good faith estimate, in most cases, will require a registrant to implement some sort of tracking process to meet the standard.  In the event of an audit, the ability to demonstrate reasonable efforts to track and capture lobbying activity, and only lobbying activity, is an additional benefit.

You can directly submit questions for this feature, and we will select those most appropriate and answer them here. Send your questions to: marketing@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.

Lobbying

“Which federal agencies do lobbyists target most?” by Elizabeth Shell in PBS Newshour.

“Unemployment Extension Cause Has Invisible Lobby | K Street Files” by Kate Ackley in Roll Call.

“Former Rep. Dan Lungren returns to lobbying” by Megan R. Wilson in The Hill.

Canada: “Number of federal lobbyists up 24 per cent” by Jason Fekete in The Star Phoenix.

Florida: “Lobbyists, lawyers jostle for pot business” by Dara Kam in The News Herald.

Kentucky: “Lobbyist hosts RPK fundraiser with top GOP senators” by Tom Loftus in the Courier-Journal.

Oklahoma: “Wind energy felt at the state Capitol” by Kurtis Killman in the Tulsa World.

Pennsylvania: “Improvements seen in Phila. lobbying Web site” by Alisha Green (Sunlight Foundation) in The Philadelphia Inquirer.

Campaign Finance

“What if your cell phone buzzed every time someone gave your congressman a ton of money?” by Emily Badger in The Washington Post.

“What America Can Learn From Norway’s Success in Regulating Campaign Finance” by Emmett Rensin in PolicyMic.

Ethics

Georgia: “Georgia settles with 3 former ethics commission employees for more than $1.8 million” by Christina A. Cassidy (Associated Press) in The Republic.

Ohio: “Lawmaker might face charges over gifts” by Randy Ludlow in The Columbus Dispatch.

Rhode Island: “Issues to watch at end of General Assembly session” by Erika Niedowski (Associated Press) in the San Francisco Chronicle.

Rhode Island: “R.I. Senate OKs bill for Ethics Commission jurisdiction over state lawmakers” by Mike McKinney in the Providence Journal.

West Virginia: “Ethics Commission to hire interim director” by Phil Kabler in The Charleston Gazette.

Congress

“What Happens in the Senate When No One’s Looking? A Lot” by Humberto Sanchez in Roll Call.

State Legislatures

California: “California Legislature passes $156.4-billion 2014-15 budget” by Chris Megerian and Melanie Mason in the Los Angeles Times.

Minnesota: “Minnesota legislators swap Capitol careers for lucrative county paychecks” by Patrick Condon in the Star Tribune.

New York: “Albany lawmakers leaving unfinished business” by Michael Randall in Times Herald-Record.

Government Tech and Social Media

“Pols have a #fakefollower problem” by Darren Samuelsohn in Politico.

The ethics commission has agreed to settle three retaliation claims for over $1.8 million. The claims are each related to an investigation of Gov. Nathan Deal involving 2010 campaign and personal finance reports.

Under the terms, the commission’s former deputy, Sherry Streicker, will receive $1 million, former IT specialist John Hair will receive $410,000, and former staff attorney Elisabeth Murray-Obertein will receive $477,500. The settlements follow an April jury verdict awarding $700,000 plus fees to the commission’s former executive secretary, Stacey Kalberman, who argued her pay was slashed and her deputy’s position eliminated as they were preparing subpoenas in the Deal case.

Murray-Obertein, who arrived after the departures of Kalberman and Streicker, testified she was under pressure to get the Deal case resolved. Hair claimed LaBerge ordered him to alter, hide, and destroy documents related to the Deal investigation.

The commission has denied any wrongdoing and Deal has said he was not involved in any of the commission’s decisions or actions.

 

National:

What Corrupt States Spend Their Money On

Government Technology – Liz Farmer and Kevin Tidmarch (Governing Magazine) | Published: 6/6/2014

According to research published in Public Administration Review, states with higher levels of public corruption spend more money on highways and construction. The study found those projects and police programs provide the most opportunities for lawmakers to enrich themselves, and are positively correlated with state levels of corruption. Meanwhile, highly corrupt states also spend relatively less on health, education, and welfare, categories that were less susceptible to graft and bribery, found the report.

Federal:

Four Years Later, FEC May Finally Update Its Books with Citizens United Ruling

National Journal – Shane Goldmacher | Published: 6/8/2014

Sources said a bipartisan coalition of FEC commissioners is finally moving to update its regulations in the wake of the Supreme Court’s Citizens United ruling after years of stalemate. The proposed rules under consideration by commissioners are narrow in scope, mostly seeking to strip unconstitutional provisions from the books; the revisions would not include the stricter disclosure requirements that some Democrats have sought, said people involved in the matter. But the very fact the FEC is undertaking the effort at all is a significant development for an agency that has become synonymous with Washington gridlock and dysfunction.

From the States and Municipalities:

California – Calif. Senate Adopts New Ethics Standards, Rejects Others

Los Angeles Times – Patrick McGreevy | Published: 6/9/2014

The California Senate passed new rules that will create an ethics ombudsman, update the chamber’s code of conduct, and ban senators from collecting campaign checks during the last four weeks of the legislative session. But the Senate also shot down a bill that sought a broader campaign fundraising ban, and passed a watered-down ethics bill striking out an attempt to limit the value of travel that officials may take at the expense of interest groups who lobby them.

Colorado – Colorado Secretary of State Denies Citizens United’s Press Pass

Denver Post – Joey Bunch | Published: 6/5/2014

A request by conservative political group Citizens United to be treated as a media organization under Colorado election law was denied. The secretary of state’s office ruled an upcoming documentary featuring state politicians “is an electioneering communication” and does not fall under any of the exemptions to state laws requiring political groups to disclose financial donors when running ads that mention candidates within 60 days of an election.

Connecticut – Judge Rules for State’s Campaign Finance Law

Hartford Courant – Edmund Mahony | Published: 6/10/2014

A federal judge dismissed part of a Democratic Governors’ Association (DGA) lawsuit and denied the group’s bid for a preliminary injunction against Connecticut’s campaign finance laws that it said limit the ability of political groups to buy independent ads backing candidates. The DGA maintained that under laws adopted in 2013, the state unfairly treats independent money spent on ads and other political messages by the national group as contributions to particular candidates, and thus subject to donation limits.

Idaho – Ethics Proposal Would Stop Lobbyists from Lying to Lawmakers

Utah Policy – Brian Schott | Published: 6/10/2014

Idaho law prohibits lobbyists from intentionally giving false information to officials. The punishment is up to $100 fine and a one-year suspension of their lobbying license. But the law is basically unenforceable because it is nearly impossible to prove whether a lobbyist provided false information on purpose. State Sen. Daniel Thatcher wants to put more teeth into the statute.

Illinois – State Rep. Derrick Smith Found Guilty in Bribery Trial

Chicago Sun-Times – Kim Jansson | Published: 6/10/2014

A federal jury found Rep. Derrick Smith guilty of taking a $7,000 bribe to support a state grant for a day-care center. He was charged following an FBI undercover investigation that caught him talking about the payoff on tape. Smith was expelled by the Illinois House in 2012 after he was charged with taking the bribe. He won his seat back the same year, but lost the Democratic primary in March.

Maryland – City Chides Developer for Listing Campaign Contributions as Project Cost

Baltimore Sun – Luke Broadwater | Published: 6/11/2014

Baltimore officials approved a deal to sell a pier for the development of a luxury hotel after reprimanding a developer for trying to include campaign contributions to local politicians as part of the project’s costs. Recreation Pier Developers listed donations to city Councilperson James Kraft and state Del. Peter Hammen as part of the more than $3 million it has spent on the project. “The developers believe campaign contributions buys access and helps build a relationship …,” said Maryland Common Cause Director Jennifer Bevan-Dangel.

Maryland – Hershey v. Hershey: Chocolate company sues state senator over campaign signs

Baltimore Sun – Ian Duncan | Published: 6/9/2014

In a federal lawsuit, the Hershey Company asked a judge to stop Maryland Sen. Stephen Hershey, Jr. from using campaign materials that it believes are too similar to its own logo and packaging. The senator’s name, in block capital letters over a brown Maryland flag, looks strikingly similar to the wrapper of a certain confection, the chocolate maker says, an impermissible use of what it calls its “trade dress.”

Nevada – In Nevada, Nobody Wins (Sort-Of)

Politico – Steven Shepard | Published: 6/11/2014

More Democratic primary voters cast ballots for “None of these candidates” than for any actual candidates for governor in Nevada, a testament to a weak field looking to challenge popular Gov. Brian Sandoval and a unique state election law that allows voters the none-of-the-above option. “None” led the way with 30 percent of the vote. Finishing second was former state economic development director Robert Goodman, who won 25 percent of the vote.

North Carolina – N.C. Investigating Donations by Sweepstakes Industry

The Virginian-Pilot – Michael Biesecker (Associated Press) | Published: 6/11/2014

The State Bureau of Investigation is conducting a criminal probe into campaign contributions from the video sweepstakes industry to some of North Carolina’s top elected officials. The Associated Press reported last year that donations from gaming software magnate Chase Burns, who was pushing for legalization of his industry in North Carolina, may have violated state laws prohibiting corporate money from “directly or indirectly” funding political campaigns.

Pennsylvania – A Bad Bet: GOP Governors Assn. crossed state law with donation

Philadelphia Daily News – Chris Brennan | Published: 6/11/2014

The Republican Governors Association transferred nearly $1 million to its Pennsylvania PAC – the largest donor to Gov. Tom Corbett’s re-election bid – from casino magnate Sheldon Adelson, a blunder that appears to breach the state’s gaming act. State law bars casino owners and executives from giving to candidates, political parties, or committees. Adelson chairs the Las Vegas Sands Corp., which owns a casino in Bethlehem.

South Carolina – South Carolina Senate Postpones Vote on Ethics Compromise after House Grudgingly Passes

Columbus Republic – Andrew Coffman Smith (Associated Press) | Published: 6/5/2014

The South Carolina General Assembly was on the cusp of passing its first attempt at ethics reform in 20 years when Sen. Lee Bright filibustered a vote on the bill. The House had passed the legislation but the Senate chose to wait until June 17 to consider the measure. The reform bill raises the annual lobbyist registration fee from $100 to $200, and super PACs would be required to disclose their top five donors and any donor who gives more than $10,000, among other provisions.

Virginia – Cantor Loss Throws Congress into Disarray

Washington Post – Paul Kane | Published: 6/10/2014

In one of the most stunning primary election upsets in congressional history, House Majority Leader Eric Cantor was soundly defeated by a tea party-backed economics professor who had hammered him for being insufficiently conservative. The result delivered a major jolt to the Republican Party as Cantor had widely been considered the top candidate to succeed Speaker John Boehner, and it has the potential to change both the debate in Washington on immigration and, possibly, the midterm elections.

Virginia – GOP Has Claimed Control of Va. Senate, Forced Democrats to Cave over Medicaid Impasse

Washington Post – Laura Vozzella and Michael Laris | Published: 6/9/2014

The resignation of a Democratic senator in Virginia that flipped control of the chamber to Republicans set off charges of an unseemly deal and threatened Gov. Terry McAuliffe’s chances of expanding Medicaid under the president’s health care law. State Sen. Phillip Puckett’s sudden decision to step down from his seat may tip a stalemate in favor of Republicans opposed to expanding Medicaid to 400,000 poor and disabled residents. Democrats accused Republicans of masterminding Puckett’s resignation by promising him a plum job and speeding the appointment of his daughter to a state judgeship.

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On June 11, the Toronto, Canada City Council appointed Valerie L. Jepson as the city’s new integrity commissioner. According to the city’s press release, Jepson was counsel for the Office of the Ontario Integrity Commissioner since 2007. Jepson replaces Janet Leiper, the commissioner since 1999.

Earlier this year, the Committee to Restore Michigan’s Part-time Legislature circulated a statewide petition to amend the Michigan Constitution. The proposed amendment aimed to institute a part-time state Legislature and limit legislative sessions to 60 days, lawmaker salaries to $35,000, and total legislative staffers to 250.

The committee announced on June 12, 2014, it is suspending its campaign due to failure to collect enough signatures by the June deadline. The committee needed at least 322,609 signatures in order to get the amendment on the ballot in November.

Although the campaign is suspended for the 2014 election, the committee plans to resurrect the effort in 2016.

Lobbying

“Lobby groups hunker down for storm” by Bernie Becker and Benjamin Goad in The Hill.

“Cantor’s K Street value: Off the charts” by Megan R. Wilson in The Hill.

Campaign Finance

“Tech firm looks to bring bitcoins to campaigns” by Julian Hattem in The Hill.

“Got bitcoins to spend? Here are some options” by Laura Lorenzetti in Fortune.

Alaska: “Campaign-Finance Challenge in Alaska Senate Race” by Jeremy W. Peters in The New York Times.

Florida: “Campaign Cash Offers Picture of Legislative Races” by Jim Saunders in the Sunshine State News.

Ethics

Illinois: “Jurors Have Some Trouble Convicting Illinois Legislator of Bribery” by Jason Meisner in Governing.

Rhode Island: “R.I. Senate delays vote on ethics bill to consider possible changes” by Randal Edgar in the Providence Journal.

State Legislatures

Michigan: “Michigan petition drive for part-time Legislature falls short but organizers look to 2016” by Jonathan Oosting on Michigan Live.

New York: “Cuomo ‘not overly optimistic’ about end of legislative session” by Jimmy Vielkind in Capital New York.

Virginia: “Lawmakers return to pass budget” by Michael Marts in The Roanoke Times.

Washington: “Slew of state laws take effect” by Lauren Dake in The Columbian.

U.S. District Judge Janet Hall has denied an injunction request by the Democratic Governors Association (DGA) to enjoin the state’s campaign finance laws.

DGA argued Connecticut’s campaign finance law limits the ability of political groups to buy independent ads supporting candidates by treating such spending as a contribution to the candidates supported, thus making it subject to campaign finance limits.

In denying the injunction, Judge Hall found the DGA did not establish a likelihood it would prevail in its challenge of the law.