On May 29, Natalia Luna Ashley was named the new executive director by the Texas Ethics Commission. Ashley had been serving both as its interim executive director and its special counsel. She has also held the positions of assistant general counsel and assistant director of enforcement with the commission.

Photo of the Texas State Capitol Dome courtesy of Ed Uthman on Wikimedia Commons.

Former Doral mayor Juan Carlos Bermudez has been appointed as a commissioner to the Miami-Dade County Commission on Ethics and Public Trust. Bermudez is one of Doral’s founders and previously served as president of the Miami-Dade County League of Cities.

Marcia Narine, an assistant professor of law at St. Thomas University, was also sworn in as a new commissioner.

Commissioners are appointed to four-year terms.

The U.S. Government Accountability Office (GAO) released its audit of federal lobbying compliance for 2013.

For the audit, the GAO reviewed a random sample of 104 quarterly disclosure reports filed for the third and fourth quarters of calendar year 2012 and the first and second quarters of calendar year 2013. Among its findings, the GAO concluded 96 percent of filers of lobbying disclosure reports were able to provide documentation to support reported income and expenses, 92 percent filed the required federal political campaign reports, and 67 percent of the reported income and expenses were properly rounded to the nearest $10,000. The audit also found at least 17 percent of all lobbying disclosure reports did not properly disclose formerly held covered positions.

The 56 page report, released on May 28, 2014, is titled “2013 Lobbying Disclosure Observations on Lobbyists’ Compliance with Disclosure Requirements.”

On May 29, the Arizona Legislature adjourned its special session sine die. Two bills were passed creating and funding the Department of Child Safety. Gov. Jan Brewer immediately signed both bills.

Photo of the Arizona State Capitol by Jeff Dean on Wikimedia Commons.

Join me on June 3 for “Mid-term Elections, High-stake Races: Get the Story on State Compliance,” a webinar hosted by the Association of Government Relations Professionals.

I’ll be speaking about:

• How to utilize direct corporate dollars when contributing to state candidates.
• Knowing the ins and outs of using a federal PAC to contribute to state candidates
• McCutcheon vs. FEC: Understanding the impact on the states
• Becoming familiar with navigating complex state pay-to-play laws
• Discerning the elements of an effective compliance strategy: Pay-to-play and corporate contributions

The mid-term elections are around the corner. Make sure you have the information you need to stay compliant.

See you on June 3,

Elizabeth Bartz

President and CEO of State and Federal Communications, Inc.

 

Federal:

Harry Reid’s Attacks on Koch Brothers Send GOP Donors into the Shadows

Washington Post – Matea Gold | Published: 5/29/2014

Several prominent pro-Republican advocacy groups say they are benefiting from a burst of cash as some donors, fearful of harsh public attacks such as those aimed at the billionaire Koch brothers by U.S. Senate Majority Leader Harry Reid, turn away from political committees required under federal law to reveal their contributors. Reid has escalated his criticisms of the Kochs and their influence within the GOP in recent months, lodging sharply personal attacks against the brothers, often from the Senate floor. “We’ve heard from donors that they don’t want to get ‘Koched,'” said one Republican operative who works with outside groups.

I.R.S. Delays New Rules on Taxation for Activists

New York Times – Nicholas Confessore | Published: 5/22/2014

The IRS is rewriting new rules intended to clarify how the agency defines political activity and how much nonprofit groups are allowed to spend on it and still keep their tax exempt status. The IRS will delay a public hearing it planned to hold this summer until the controversial regulations are revised. The agency said it made the decision after receiving 150,000 comments about the changes, the biggest public response to any proposed rule in its history. The delay means new rules will not be in place before Election Day.

Patton Boggs Agrees to Merger with Squire Sanders

Washington Post – Catherine Ho and Holly Yeager | Published: 5/23/2014

Patton Boggs, a Washington, D.C. lobbying and legal powerhouse for decades, is merging with a larger firm, Squire Sanders, in a move that saves Patton Boggs from drift or dissolution. The new firm will be named Squire Patton Boggs. The merger is expected to take effect by June 1. The end of Patton Boggs as a standalone firm is a tale of a changing industry, where a firm’s ability to influence a few key powerbrokers is giving way to the need to sway larger groups of lawmakers and the public as a whole.

RNC Files Suit to Raise Unlimited Cash for Elections

San Gabriel Valley News; Associated Press –   | Published: 5/22/2014

The Republican National Committee sued for the right to raise unlimited funds for independent expenditures that advocate for a candidate’s election. The suit seeks to eliminate an annual $32,400 per person limit on contributions to the party, making its independent spending similar that of a super PAC. The committee did not challenge limits on contributions made directly to campaigns.

From the States and Municipalities:

Arkansas – Arkansas Ethics Panel Issues Opinion on Electronic Campaign Contributions

The Times Record; Arkansas News Bureau –   | Published: 5/23/2014

The Arkansas Ethics Commission said a national organization that accepts campaign contributions electronically does not have to require Arkansas donors to submit personal information each time they make a donation if the information is already recorded. The commission issued an advisory opinion at the request of ActBlue, a PAC that raises money for Democratic candidates across the country.

California – Chiu Lobbying Legislation Heads to Full Board of Supervisors Next Month

San Francisco Chronicle – Marisa Logos | Published: 5/27/2014

Proposed changes to San Francisco’s lobbying ordinance seek to close loopholes that critics say have allowed some of the city’s most prolific lobbyists to avoid registering. Current law exempts licensed attorneys from registering as lobbyists, even if they are not actually acting as a lawyer. The legislation also changes the definition of a lobbyist, basing it on the number of times a person contacts city officials instead of how much he or she is paid for lobbying activities.

California – Guiding Voters to Candidates with the Right Wallets

Los Angeles Times – Evan Halper | Published: 5/27/2014

Like so many other Silicon Valley startups, a project from two Stanford University professors, www.crowdpac.com, is rooted in an algorithm. This one is fueled by campaign money. The academics view campaign disclosure reports as a treasure trove of data that can be used to connect neophyte politicos with like-minded candidates. Crowdpac’s motto: “It turns out the best guide to what a politician will do is not what comes out of their mouth, but what goes into their wallet.”

Maine – Maine Ethics Panel Imposes Record Fine on National Organization for Marriage

Portland Press Herald – Steve Mistler | Published: 5/28/2014

The Maine Commission on Governmental Ethics and Election Practices fined the National Organization for Marriage (NOM) more than $50,000 and ordered it to file a report that would reveal the donors behind the group’s 2009 effort to repeal the state’s gay marriage law, a decision that could affect how nonprofit organizations attempt to influence elections. The commission ruled NOM failed to properly register as a ballot question committee and file campaign finance reports in the referendum that struck down same-sex marriage before it was legalized by voters in 2012.

Minnesota – Ritchie Cuts out Immunity Cards for Legislators

Minneapolis Star Tribune – Abby Simons | Published: 5/22/2014

Secretary of State Mark Ritchie will no longer distribute “Get Out of Jail Free” cards to Minnesota lawmakers. The decision brings an end to the wallet-sized cards that say lawmakers “in all cases except treason, felony and breach of the peace, shall be privileged from arrest” while the Legislature is in session. Historically, the cards were issued to keep adverse interests from arresting lawmakers to prevent them from voting, but have raised concerns among some who fear they literally put legislators above the law, including getting them out of drunken driving or other arrests.

Mississippi – For Tea Party, Senate Race in Mississippi Is the Last Chance to Oust an Incumbent

New York Times – Jonathan Weisman | Published: 5/28/2014

Mississippi politics has always had a rough edge under the veneer of Southern gentility, but the race for the U.S. Senate between incumbent Thad Cochran and state Sen. Chris McDaniel has reached another level. The race represents the last chance for tea party activists to topple an incumbent senator, and it appears that little is off limits in the campaign.

New Jersey – A Limit to Pension Investing Oversight as Political Donations from Executives Can Go Unchecked

Bergen Record – Melissa Hayes and John Reitmeyer | Published: 5/27/2014

New Jersey’s “pay-to-play” law makes it clear that executives and their employees working on the state’s pension fund investments cannot donate to candidates and political committees. But those venture capital firms and hedge funds often take the state pension dollars and invest them in other companies whose executives do not have to disclose their campaign contributions. The complex nature of those investments, the inability of the law to cover all their financial relationships, and the lack of any public database like the one for state contractors make tracking political connections difficult.

New York – New York Elections Board: $150,000 campaign donation limit on individuals won’t be enforced

The Tribune – Michael Virtanen (Associated Press) | Published: 5/27/2014

The New York Board of Elections ruled the state’s $150,000 annual limit on aggregate campaign donations by individuals will no longer be enforced. The contributions would be restricted only by how much a politician, party, or group can receive under various limits set in election law. For example, a statewide candidate can accept no more than $41,100 from a single donor. The board agreed the $150,000 limit is unenforceable following recent court rulings.

Pennsylvania – How Philly’s Most Powerful Ed Reform Group Broke the Law

Philadelphia City Paper – Daniel Denvir | Published: 5/23/2014

The city ethics board levied a fine of $1,500 against the Philadelphia School Partnership for failing to register as a lobbying principal and not filing required disclosure reports. The partnership, a local nonprofit raising millions of dollars in a bid to improve public, private, and charter schools, said it was initially unaware that the city’s definition of lobbying was broader than those used by the state and federal governments.

Virginia – Ethics Law Addresses Virginia Officials’ Financial Dealings, But Database Is a Tall Order

Washington Post – Jenna Portnoy | Published: 5/26/2014

Under a new law, the public should be able to scrutinize a wide variety of Virginia officeholders’ financial data and gifts they receive with a quick check online. But unanswered questions about how the electronic clearinghouse will be set up could make it harder, not easier, to see the information. Officials are struggling with the difficult and potentially expensive reality of carrying out the law. As a result, they are considering a simpler, less searchable system that would make it more difficult to scrutinize the records.

Virginia – McAuliffe Vetoes Ethics Bill after Amendments Rejected

Richmond Times Dispatch – Olympia Meoli | Published: 5/23/2014

Virginia Gov. Terry McAuliffe vetoed identical ethics reform bills limiting certain gifts to him after the General Assembly rejected amendments he proposed to place that limit on lawmakers. The bills aimed to ban the governor from soliciting or accepting gifts worth more than $50 from those seeking grants or no-interest loans from a state economic development fund.

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.

 

The New York State Board of Elections will no longer enforce the $150,000 yearly aggregate limit on political contributions from individuals. In its May 2014 meeting, the board determined the limit can no longer be enforced in light of recent federal court decisions.

New York campaign finance law imposes a similar aggregate limit of $5,000 on a corporation’s yearly contributions. The board made no ruling with regard to the corporate limit; however that limit is currently being challenged in federal court.

The Government Accountability Board (GAB) is seeking comment on new guidelines for lobbyist campaign contributions. Following changes to campaign fundraising rules pursuant to 2013 Wisconsin Act 153, GAB concluded a lobbyist may deliver or convey a campaign contribution on behalf of a political action committee, conduit, or other person to a candidate for any office at any time.

The draft changes to GAB guidelines 1249 and 1250 are available here. Comments should be sent to Division Administrator Jonathan Becker at jonathan.becker@wi.gov or (608) 267-0647 by June 2, 2014.

Lobbying

“Bottom Line” in The Hill.

“Big Business’ Summer Agenda | K Street Files” by Kate Ackley in Roll Call.

“States and Localities Are Losing Their Influence in Washington” by J. B. Wogan in Governing.

Campaign Finance

“Campaigns Ignore State Law at Their Peril | A Question of Ethics” by C. Simon Davidson in Roll Call.

California: “L.A. County requires electronic filings of campaign finance reports” by Abby Sewell in the Los Angeles Times.

Massachusetts: “Campaign finance bill is now law” by Douglas Moser in the Eagle-Tribune.

Wisconsin: “Judge who stopped Wisconsin campaign finance probe tied to Koch-funded junkets” by Chris Young in The Center for Public Integrity.

Ethics

North Carolina: “North Carolina elections board hiring longtime FBI agent to work on investigation team” by The Associated Press in The Republic.

South Carolina: “SC Senate votes against House ethics plan” by The Associated Press in The State.

Elections

“Oldest lawmaker kicked out” by Cameron Joseph in The Hill.

“An Update on the 2014 State Legislators to Watch” by Louis Jacobson in Governing.

“A Guide to the 36 Governors’ Races” by Louis Jacobson in Governing.

Texas: “Tea Party Conservatives Win Top GOP Runoff Contests” by Brandi Grissom in The Texas Tribune.

In a May 23 legal advisory to federal designated agency ethics officials, the Office of Government Ethics announced it had raised the widely attended gathering gift exception ceiling for nonsponsor gifts of free attendance from $350 to $375. This revision of 5 C.F.R. § 2635.204(g)(2) became effective May 19, 2014, when it was published in the Federal Register.

The Ethics Commission has issued an opinion for organizations accepting campaign contributions electronically. Advisory Opinion 2014-EC-002 permits organizations to accept electronic donations without requiring the donor to submit personal information if the information is already recorded.

The commission issued the opinion at the request of ActBlue, a political action committee for Democratic candidates across the country. The ActBlue website requires personal information of the donor to be submitted, but not resubmitted for subsequent contributions.

The committee asked if this practice complied with a statutory requirement for electronic records to include the donor’s name, address, place of business, employer, and occupation “at the time of making the contribution.” The commission concluded even if some of the required donor information was provided prior to a contribution, the record would comply with the statute.

Lobbying

“Patton Boggs, Squire Sanders to merge” by Megan R. Wilson in The Hill.

“Bitcoin gets a lobbyist” by Julian Hattem in The Hill.

Illinois: “Retired congressman cashes in as transit lobbyist, consultant” by Chuck Neubauer and Sandy Bergo in the Chicago Sun-Times.

Campaign Finance

“GOP Sues to End Fundraising Limits on Political Parties” by Brody Mullins in The Wall Street Journal.

“Shrinking Line Separates Campaign Donations From Bribes” by Albert R. Hunt in Bloomberg.

Arkansas: “Arkansas Ethics Panel Issues Opinion On Electronic Campaign Contributions” in the Times Record.

New Jersey: “Special interest money in Newark election fuels debate over campaign finance reform” by Ted Sherman in The Star-Ledger.

New York: “NY won’t enforce $150G contribution limit on individual donors” by Michael Gormley in Newsday.

New York: “Poll finds New Yorkers support campaign finance” by The Associated Press in The Wall Street Journal.

Virginia: “McAuliffe vetoes bill that would ban donations from companies seeking economic grants” by Jenna Portnoy in The Washington Post.

Wisconsin: “Will Wisconsin follow FEC’s lead on bitcoin approval?” by Steven Elbow in The Capital Times.

Ethics

New York: “NY lawmaker’s campaign manager quits” by Cameron Joseph in The Hill.

Pennsylvania: “Pennsylvania has one of nation’s most lax ethics laws for politicians” by Karen Shuey in Lancaster Online.

Rhode Island: “Candidates for governor discuss R.I.’s reputation for secrecy, cronyism / Video” by C. Eugene Emery, Jr. in the Providence Journal.

South Carolina: “SC ethics reform likely will not include independent oversight of legislators” by Andrew Shain in The State.

The Board of Supervisors will soon vote on ethics legislation introduced last year by City Attorney Dennis Herrera and Board of Supervisors President David Chiu. Ordinance 130374 would amend the Campaign and Governmental Conduct Code to expand the definition of lobbyist and require random audits of lobbying reports.

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

The ordinance will likely be decided at the board meeting on June 10, 2014.

Today, the Republican National Committee (RNC) filed a lawsuit in the United States District Court District of Columbia asking that political parties be able to collect unlimited political contributions for independent expenditures.

In RNC v. Federal Election Commission (FEC), the RNC argues the First Amendment protects the right of political parties to engage in unlimited independent expenditures and accept unlimited contributions to accounts maintained by those parties when designated solely for independent expenditures.

The RNC wants to conduct this independent activity in select U.S. Senate and House Races in 2014 followed in 2016 in the race for the President.

On May 21, a similar lawsuit was brought against the FEC by the Libertarian National Congressional Committee asking for comparable relief.