The 7th Circuit U.S. Court of Appeals has declared portions of the state’s campaign finance laws restricting issue advertising unconstitutional. Wisconsin Right to Life Inc. and its state political action committee sued the Government Accountability Board (GAB) to prevent enforcement of state statutes and rules against issue advocacy groups spending money for political speech independently of candidates and parties.

The decision prevents GAB from enforcing both the state’s ban on political spending by corporations and the amount a corporation may spend on fundraising for an affiliated political action committee. The ruling will also affect a secret John Doe investigation into conservative organizations suspected of illegally coordinating with Gov. Scott Walker’s campaign during the state’s partisan recall elections.

Attorney General William Sorrell issued a formal opinion confirming the state’s current contribution limits will remain in effect through the 2014 elections. Early in the legislative session, Vermont enacted Senate Bill 82, repealing the existing campaign finance law upon passage and establishing new contribution limits to take effect January 1, 2015.

The bill contained a drafting error, however, repealing the existing limits without anything in their place before the new limits take effect in 2015. The House attempted to correct the error through an additional bill, but it was never acted upon by the Senate Finance Committee.

While the Elections Division issued a statement confirming the old limits still applied, Secretary of State Jim Condos requested a formal opinion from the state’s attorney general since his office lacked statutory authority to enforce the old limits.

Relying on legislative deliberations on Senate Bill 82, Sorrell ruled the Legislature did not intend to repeal existing limits for the 2014 election cycle, and the existing limits at the time of the bill’s passage will be enforced until the new limits take effect next year.

Gov. Jerry Brown has signed a bill to close “dark money” loopholes used to avoid disclosure of campaign contributors.

Senate Bill 27 requires large donations from nonprofits and other multipurpose organizations to be disclosed. The top 10 contributors to state committees will now be posted online by the Fair Political Practices Commission.

The bill becomes effective immediately, but with a delayed operative date of July 1, 2014.

Lobbying

“Which foreign countries spent the most to influence U.S. politics?” by Colby Itkowitz in The Washington Post.

“Patton Boggs lobbyist jumps to Akin Gump” by Megan R. Wilson in The Hill.

“Drone lobby takes flight on K Street” by Megan R. Wilson in The Hill.

Illinois: “U of I lobbying day at Capitol today” by The Associated Press in The State Journal-Register.

North Carolina: “NC lawmakers indulge in pre-session ritual: the fundraiser” by Jim Morrill in the Charlotte Observer.

Campaign Finance

“Federal court rulings prompt wave of states hiking campaign contribution limits” by Luke Wachob in the Washington Examiner.

“Five Joint Fundraising Committees Register at FEC” by Kent Cooper in Roll Call.

California: “Yaroslavsky proposes reforms in county campaign finance system” by Abby Sewell in the Los Angeles Times.

Connecticut: “Campaign Reforms At Stake In Legal Fight” by Edmund H. Mahoney in The Courant.

Delaware: “Illegal Campaign Contributions Could Go To Charity” by Don Rush (Associated Press) on Delmarva Public Radio.

Montana: “Campaign finance rulings split U.S. House candidates” in the Billings Gazette.

Oregon: “Super PACs spend big in Oregon GOP Senate primary” by Jonathan J. Cooper (Associated Press) on KATU.org.

Vermont: “Vermont Attorney General rules campaign limits remain the same for 2014 election cycle” by The Associated Press in the Daily Reporter.

Ethics

Arizona: “Ex-staffer accuses Horne of doing campaign work at the office” by Howard Fischer in the Verde Independent.

Pennsylvania: “PA lawmakers want independent corruption-fighting agency” by Andrew Staub in Watchdog.org.

Government Tech and Social Media

“How to Make Analytics Work for Your Government” by Jason Shueh in Government Technology.

Lobbying

“Lobbying on data, cybersecurity has tripled” by Catherine Ho in The Washington Post.

“Bitcoin community upset over political lobbying in Washington” by Andrew Moran in Personal Finance.

Massachusetts: “For Massachusetts lawmakers, steady lobbying money” by The Associated Press in the Boston Herald.

Massachusetts: “DeLeo: Lobbyist donations have no effect on votes” by The Associated Press in the Connecticut Post.

New York: “Lobbying loophole obscures local casino spending” by Laura Nahmias in Capital New York.

Campaign Finance

“‘Fixing’ campaign finance is only making it worse” by Seth Masket in The Washington Post.

Mississippi: “Bank Gives $230K Unsecured Loan to Super PAC” by Kent Cooper in Roll Call.

New Hampshire: “Changes to campaign finance laws could have big effect in N.H. races” by Kathleen Ronayne in the Concord Monitor.

New York: “NYS Public campaign finance showing signs of life” by Karen DeWitt on North Country Public Radio.

Washington: “Initiative targets big money in politics” by Jim Brunner in The Seattle Times.

Ethics

Florida: “Conference offers crash course on Florida politics” by Anthony Man in the Sun Sentinel.

A new Utah state law requiring independent expenditure reporting for political spending became effective today. House Bill 39 requires all persons and entities, except political parties, to file independent expenditure reports with Utah’s chief election officer within 30 days after the day on which a person or entity has made a total of at least $1,000 in independent expenditures during an election cycle.

Another provision of the new law is the requirement to retain records related to the filings for two years, including all independent expenditures, receipts, and donations described in the reports. New definitions concerning independent expenditures are now codified, including telephone bank, which is defined as “500 or more identical or substantially similar telephone calls within any 30-day period.” Fines from $100 to $1000 can be imposed for violations.

The Government Accountability Board (GAB) has concluded a recently signed law allowing lobbyists to personally give campaign contributions a couple of months earlier also prohibits them from providing such contributions on behalf of clients at any time.

Whether by design or by drafting error, a late amendment to Senate Bill 655 removed the provision to allow a lobbyist to deliver a client’s contribution at any time.

GAB will review the matter at its meeting on May 21, 2014. The Legislature would have to reconvene to fix a drafting error.

Delaware Lt. Gov. Matt Denn recently announced his candidacy for attorney general in 2014. If he is elected in November, the office of the lieutenant governor would be vacant until 2016.

Delaware law has no provision to address such a vacancy, so legislators in both houses have introduced bills for a constitutional amendment mandating a special election in these and similar circumstances.

Legislators can pass a constitutional amendment calling for a special election, but they must pass the bill twice. In order to accomplish this before the 2016 general election, the Legislature must pass the first part of the amendment by June 30, 2014.

Colorado state legislators recently passed a bill aimed at increasing lobbying transparency. Senate Bill 14-217 passed the House by unanimous vote on May 7, demonstrating bipartisan support for changes in lobbyist disclosure requirements.

The bill requires lobbyist subcontractors receiving business from a professional lobbyist to report subcontracting business on their annual disclosure statements though such information is contemporaneously reported on the professional lobbyists’ disclosure statements.

Another legislative provision requires lobbyists to update their registration statements within 24 hours of lobbying for a new client or subcontracting for another lobbyist. Per its design, SB 217 effectively closes a lobbying loophole by allowing the public to connect the lobbyists who subcontract for lobbying firms to the clients hiring such firms.

If signed by Gov. Hickenlooper, the bill will become effective July 1, 2015.

Just over a month ago, the Miami-Dade Commission on Ethics and Public Trust cleared David Beckham of a complaint charging he violated county ethics law by failing to register as a lobbyist. At the time, Beckham’s meetings with Miami-Dade Mayor Carlos Gimenez were characterized as “meet and greets” regarding potential interest in bringing a Major League Soccer franchise to Miami. Once the plans start to take shape, however, individuals meeting with county officials would need to register as lobbyists, according to the Commission’s report.

Now, with potential sites being discussed, Beckham and his business partner Simon Fuller have registered as county lobbyists ahead of their meeting with county commissioners. But, the Miami-Dade Board of County Commissioners may not be the only government body to need convincing on stadium site approval. One of two potential waterfront stadium sites is under the city of Miami’s jurisdiction, and Miami Mayor Tomas Regalado has cautioned voter approval may be required.

David Beckham’s Lobbyist Registration, courtesy of the Miami Herald.

Photo of David Beckham courtesy of Paulblank on Wikimedia Commons.

Despite the adjournment of the Maine Legislature on May 2, 2014, legislators are still debating issues.

Republican leaders are urging Democrats to reconvene for a special session to address a funding crisis for the state’s nursing homes.

Federal:

Federal Election Commission Approves Bitcoin Donations to Political Committees

Washington Post – Matea Gold | Published: 5/8/2014

The FEC unanimously ruled that political committees could legally accept bitcoin donations. The commission also affirmed that political committees could buy and sell the digital currency as an investment, as long as they turned those proceeds into dollars before spending them. But after the vote, individual commissioners offered conflicting views on whether their decision limits bitcoin donations to small amounts.

Lobby Cash Goes Underground in PR Boom

The Hill – Megan Wilson | Published: 5/7/2014

While traditional lobbying revenue hit its lowest point in four years in the first months of 2014, according to the Center for Responsive Politics, industry insiders say those statistics miss the hundreds of millions of dollars that are flowing to firms that are not registered to lobby. Companies and industries are increasingly using public relations for a broad array of tasks. Unlike lobbyists, public affairs firms are not required to report their clients, specific activities, or revenue, so the amount of money they take in is hard to determine.

Lobbying 101: K Street goes back to school

Politico – Byron Tau | Published: 5/7/2014

Two brand-new programs will offer aspiring lobbyists and K Street veterans alike a chance to learn new skills and beef up their resumes. George Washington University has instituted a master’s degree with a focus on global advocacy and lobbying. The Public Affairs Council unveiled a certificate program aimed at giving mid-career professionals a chance to expand their expertise and improve their management skills. Other established programs include the Association of Government Relations Professionals’ Lobbying Certificate Program and the Public Affairs and Advocacy Institute at American University.

From the States and Municipalities:

Florida – Miami-Dade Lobbyist in Middle of FBI Sting against Mayors Pleads Guilty

Miami Herald – Jay Weaver | Published: 5/7/2014

Richard Candia, a lobbyist caught up in a FBI sting that also snared two South Florida mayors, pleaded guilty to honest services fraud. The undercover operation revolved around a bogus federal grant program that prosecutors say was designed to line the pockets of the mayors, Candia, and another lobbyist instead of benefiting their cities. Under his plea agreement, Candia is expected to be a key witness for the prosecution in the upcoming trial of former Miami Lakes Mayor Michael Pizzi.

Kansas – Brownback Dismisses Reports of FBI Investigation of Associates as Smear Campaign

Wichita Eagle – Bryan Lowry | Published: 5/5/2014

Kansas Gov. Sam Brownback dismissed reports of an FBI investigation into the activities of his former chief of staff, David Kensinger, as a smear campaign. Sources have said three lobbyists and a former state official were interviewed about whether Kensinger and others have been involved in “pay-to-play’ schemes. Two of the interviewees said they were pressured and intimidated by Kensinger to support and donate to certain candidates. But another said no quid pro quo took place.

Kentucky – In Reversal, Kentucky Legislative Ethics Commission Finds Former Lawmaker John Arnold Guilty

WFPL – Jonathan Meador | Published: 5/7/2014

In the face of a public outcry, the Kentucky Legislative Ethics Commission revisited its sexual-harassment case against former state Rep. John Arnold, finding him guilty of three ethics violations and imposing a $3,000 fine. When the commission originally heard the complaints, the hearing ended in a vote of four-to-one that Arnold was guilty. That vote was insufficient for a finding of guilt because the panel has nine members and five votes are needed to take action. That decision led to much public criticism and prompted leaders from both parties to call on the commission to re-hear the case.

Louisiana – Federal Judge Throws Out Campaign Donor Limits for Super PAC Supporting US Sen. David Vitter

Columbus Republic – Melinda Deslatte (Associated Press) | Published: 5/2/2014

A federal judge barred Louisiana from enforcing its $100,000 cap on donations in a four-year election cycle to a super PAC formed by a lawyer who has said it will advocate for U.S. Sen. David Vitter’s 2015 gubernatorial campaign. U.S. District Court Judge Martin Feldman said the state’s contribution limit was unconstitutional for a group that does not coordinate with candidates and “engages only in independent expenditures,” a ruling that could have widespread implications across Louisiana elections.

Missouri – Familiar Impasse Threatens Ethics Measures

Columbia Daily Tribune; Associated Press –   | Published: 5/4/2014

Opposition has once again emerged to suggest ethics reform is at an impasse at the Missouri General Assembly. During each of the past two sessions, bills to curb lobbying have been derailed in the Senate by Democratic attempts to reinstate campaign contribution limits. Both sides show no signs of backing down before lawmakers adjourn on May 16. A stalemate means Missouri would continue to be the only state that allows the trio of unlimited contributions to candidates, unlimited gifts from lobbyists, and no waiting period before elected officials can lobby.

Montana – GOP Candidate Benefiting from Super PAC He Founded Takes Heat from Fellow Republicans

Huffington Post – Amanda Terkel | Published: 5/7/2014

The decision by Special Operations for America to support Ryan Zinke, a U.S. House candidate in Montana, is not exactly surprising. Zinke founded the super PAC himself two years ago. The group has been running ads touting his candidacy and was even encouraging people to back him before he officially jumped into the race. The two were literally so close that at one point, the super PAC was renting office space from Zinke in a building across the street from his house.

New Jersey – Analysis: Ethics rules don’t keep ex-BPU officials from related industries

Bergen Record – Jean Rimbach | Published: 5/6/2014

Despite ethics rules on the books, top New Jersey Board of Public Utilities (BPU) officials routinely move quickly and easily into the industries that once had cases before them. Unlike some other states, New Jersey has no waiting period, during which departing commissioners face a prohibition on taking a job with a regulated utility, leaving open the opportunity for immediate employment with companies they oversaw. And decisions on what constitutes a banned activity in a post-BPU job are made case by case.

Rhode Island – GTECH Was a Corporate Sponsor for R.I. Senate President Pavia Weed’s Trip to Spain

Providence Journal – Katherine Gregg | Published: 5/2/2014

At least a dozen companies and trade associations that had lobbyists at the Capitol last year provided money to the Senate Presidents Forum, which paid for Rhode Island Senate President Teresa Paiva Weed’s trip to Spain. The state Ethics Commission has placed limits on gifts from “interested” parties, defined as any person or an entity that has a direct financial interest in a decision the public official is authorized to make. Paiva Weed believes such trips provide opportunities to confer with counterparts who face the same kinds of issues as Rhode Island. “I did not have one-on-one meetings with [any] lobbyist,” said Paiva Weed.

Rhode Island – Target 12 Investigation Triggers RI Probe of 38 Studios Lobbying

WPRI – Tim White and Ted Nessi | Published: 5/5/2014

Rhode Island Secretary of State Ralph Mollis will investigate whether 38 Studios, the video game company founded by former Boston Red Sox pitcher Curt Schilling that went bankrupt in 2012, violated state lobbying laws. According to WPRI, 38 Studios did not register any lobbyists with the state while the company was active in Rhode Island, as required by law. But a contract uncovered by the television station showed 38 Studios had agreed to pay $300,000 per year to an associate of the former House Speaker Gordon Fox to work with government agencies and officials.

Texas – Ken Paxton’s Business List Has Surged Since He Entered Legislature

Dallas Morning News – Gromer Jeffers, Jr. | Published: 5/4/2014

Since he joined the Legislature in 2003, Texas Sen. Ken Paxton, who is running for state attorney general, has started or become part of 28 business ventures. Paxton, like other lawmakers, has voted on measures that could affect his personal holdings. He has declined to say how much his net worth has grown since he joined the Legislature, and he has refused to release his federal tax returns. The state requires officeholders to list only broad ranges that their income and investments fall in, so it is difficult to say how extensive Paxton’s business holdings are.

Wisconsin – Conflicting Rulings Cloud Wisconsin Campaign Finance Inquiry

New York Times – Monica Davey | Published: 5/7/2014

A U.S. appeals court ruled Wisconsin investigators can continue a secret probe into possible campaign finance law violations by conservative groups in the state. The order stopped for now enforcement of a federal judge’s ruling that the 20-month inquiry must be halted, and records and property seized by investigators returned to the Wisconsin Club for Growth, the group that sued to halt the probe.

Wisconsin – Wisconsin to No Longer Have Aggregate Campaign Funding Limits after Federal Lawsuit Settled

Minneapolis Star Tribune – Scott Bauer (Associated Press) | Published: 5/8/2014

Wisconsin has reached a settlement in a federal lawsuit challenging the state’s limits on how much individuals can contribute to campaigns. The state law prohibits donors from giving more than $10,000 a year to all candidates. The settlement says in light of a U.S. Supreme Court ruling, Wisconsin’s law is unconstitutional so donors now will be able to spend as much as they want in aggregate to PACs and political parties.

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.

In an advisory opinion released today, the Federal Election Commission (FEC) acknowledged bitcoins as an acceptable form of political contribution. The FEC determined Make Your Laws PAC, Inc. can accept and purchase bitcoins.

The commission concluded “bitcoins are ‘money or anything of value’ within the meaning of [2 U.S.C. §431(8)(A)(i)].” It also stated bitcoin contributions may be held in a “bitcoin wallet until the committee liquidates them” and the valuation of a bitcoin donation is made “at the time the contribution is received.” However, the commission did not have the requisite four affirmative votes to decide whether bitcoin contributions could be used to acquire goods or services.

According to the Washington Post, FEC Chairman Lee Goodman said, “Just philosophically, I think it’s important for the FEC to embrace technology and innovation, and that’s what we did today.”

The Assembly has passed a bill to ban fundraisers at the homes of lobbyists. Assembly Bill 1673 passed without a no vote and without debate.

The bill modifies the definition of “contribution” by removing a $500 exception for home or office fundraisers if the host of the fundraiser is a lobbyist, lobbying firm, or lobbyist employer. Any payments by the lobbying occupant related to the costs of the fundraiser would then potentially be a prohibited contribution to officials and candidates.

In the Senate, a similar home fundraiser bill (Senate Bill 1441) currently awaits a floor vote.