Lobbying:

“Capitol Book Club, with a Bonus” by Ben Protess and Eric Lipton for New York Times

“Harrisburg Lobbying Costs on the Rise” by Robert Swift for Citizens Voice

“Ex-Lawmakers Predict Post-Election Return of Earmarks” by Katelyn Plantz for National Journal

“Complaint: D.C. law firm illegally lobbied Florida Attorney General Pam Bondi” by Michael Van Sickler for Tampa Bay Times

Ethics:

“California Lawmakers’ Campaign Credit-Card Spending Often Lacks Disclosure, Sacramento Bee Review Finds” by Jim Miller for Sacramento Bee

“How Political Donors Are Changing Statehouse News Reporting” by Daniel Vock for Governing

“Ex-Homestead Mayor Now a Convicted Felon” by David Ovalle for Miami Herald

Elections:

“Rogue Pastors Endorse Candidates, but IRS Looks Away” by Rachael Bade for Politico

“Cell Phones, Social Media and Campaign 2014” by Aaron Smith for Pew Research Center

Campaign Finance:

“Election 2014: A new level of collaboration between candidates and big-money allies” by Matea Gold for Washington Post

“Surplussing: How donors, parties legally circumvent campaign contribution caps” by Austin Jenkins for KPLU

Voters passed a constitutional amendment on the November 4 ballot to extend term limits for state lawmakers in exchange for strict ethics laws for lobbyists and corporations.

The Arkansas Elected Officials Ethics, Transparency, and Financial Reform Amendment of 2014 bans corporate and union contributions to political campaigns, prohibits gifts from lobbyists to legislative and executive officials, and extends term limits for legislators to at least 16 years.

The new provision allows lawmakers to serve 16 years in the same office, or even longer for senators winning special two-year terms after each decennial census and redistricting process.

The amendment is effective today, November 5, 2014.

At its quarterly meeting, the Board of Directors of the Municipal Securities Rulemaking Board (MSRB) agreed to ask the Securities and Exchange Commission for approval of its proposed pay-to-play rule for municipal advisors. The proposed rule would require limiting gifts to $100 for municipal advisors giving gifts to employees of entities engaged in municipal securities activities. The new rules for municipal advisors also would prohibit receiving reimbursement of entertainment expenses from the proceeds of an offering of municipal securities.

In an MSRB press release, Board Chair Kym Arnone said, “Two decades ago, the MSRB adopted its landmark pay-to-play rule to address any actual link, and the appearance of a link, between political contributions and municipal securities underwriting, a bold move that dramatically improved the integrity of the market. Extending the well-established principles of this rule to municipal advisors will similarly work to promote the integrity of the market and the municipal advisory industry.” The quarterly meeting was held October 29 – 31, 2014.

A news summary where government and politics meet tech and social media:

2014 Midterm Elections

“Google, Facebook aim to get out the vote” by Julian Hattem in The Hill.

“Cell Phones, Social Media and Campaign 2014” by Aaron Smith in Pew Internet Research Project.

“Help Us #FactcheckFacebook’s Election Efforts Today” by Micah L. Sifry in TechPresident.

“10 Races Federal Employees Should Watch on Election Day” by Eric Katz on Government Executive.

YouTube Elections

Bing Elections and Voter Guide – U.S. Senate Predictions

Google Politics and Elections | United States Midterm Elections

E-Government

“Is E-Gov Really Delivering?” by Tod Newcombe in Government Technology.

“Recreation.gov a Test Case for Government Tech” by Miranda Neubauer in TechPresident.

Lobbying

“Hard-Nosed Advice from Veteran Lobbyist: ‘Win Ugly or Lose Pretty’” by Eric Lipton for New York Times

“At Fast-Growing Brookings, Donors May Have an Impact on Research Agenda” by Tom Hamburger and Alexander Becker for Washington Post

“After Probe, Ferguson Seeks Limits on Former AG Staff Lobbying” by Jim Brunner for Seattle Times

Campaign Finance

“A Flood of Late Spending on Midterm Elections, from Murky Sources” by Nicholas Confessore and Derek Willis for New York Times

“Straw into Gold: Candidates Trading Leadership PAC Dollars for Campaign Cash” by Viveca Novak and John Sugden for The Center for Public Integrity

“Judge Refuses to Toss Campaign-Finance Allegations against AG” by Howard Fischer (Capitol News Service) for East Valley Tribune

“Judge Hears Arguments in Campaign Coordination Case” by Bruce Vielmetti for Milwaukee Journal Sentinel

Ethics

“Firebrand Alabama Republican Collides With Ethics Law He Espoused” by Campbell Robertson and Alan Blinder for New York Times

“Staff Lawyer Sues Georgia Ethics Commission” by Lisa Coston for Courthouse News

“SC House Moves to Limit Speaker’s Terms, Ban Some PACs” by Cassie Cope for The State

Elections

“Cancel the Midterms” by David Schanzer and Jay Sullivan for New York Times

“Senate Control May Be Decided by Runoff Votes in Louisiana and Georgia” by Campbell Robertson and Sheryl Gay Stolberg for New York Times

“K Street Descends on Kentucky” by Anna Palmer for Politico

“State Supreme Court Orders Election for Harrell’s Seat to Continue Tuesday Pending Review” by Seanna Adcox (Associated Press) for Greenfield Daily Reporter

Readers of Compliance NOW know how important professional development is to me. Everyone at State and Federal Communications knows from Day #1 they need to take advantage of the opportunities we provide for such development and are encouraged to also find other programs. We have all learned a lot from a popular seminar on grammar and many of us have attended the Disney Institute on working with our customers.

There are two Public Affairs Council programs in February 2015 you should consider attending.

National Grassroots Conference from February 3rd through 6th is the largest and really the most comprehensive conference of its kind. The speakers are corporate and association government affairs professionals who implement grassroots programs. You will learn strategies to improve your communications and increase your success.

National PAC Conference—or as we refer to it PAC PAC—from February 23rd to February 26th is definitely the leading program for a PAC professional. It combines the important skills training you need for the important elections facing our country.

There is one other plus to attending these conferences—you know, other than all the information you will learn and bring back to your organization—is they are both in Florida at a time when we could use a double dose of Vitamin D. The National Grassroots Conference is in Key West and the PAC PAC Conference is in Orlando at Universal’s Portofino Bay property. If this brings up questions, remind everyone the days start early in Florida and networking goes on through the evenings.

State and Federal Communications will be in attendance at both conferences—as we have been for years—and look forward to seeing you there. If you do have questions about either of these programs, please do not hesitate to give me a call. I would be happy to provide additional information.

Until next month, think about how you can sharpen your skills for the upcoming active legislative and election year.

Thank you,

Elizabeth Z. Bartz
President and CEO
@elizabethbartz

The state’s Supreme Court has issued a stay allowing voters to choose a House District 114 candidate on November 4, as originally planned. The ruling suspends the recent decision by the State Election Commission to postpone the election for former House Speaker Bobby Harrell’s seat until December.

Although the vote will take place, there is still a possibility the results will not count. The court may rule on the underlying case by deciding to allow the results of Tuesday’s election or to throw out those results and side with the commission’s special election plan.

Lobbying

“Advice on How to Stay Out of Jail – From a Lobbyist Who Didn’t” by Kevin Ring for Washington Post

Missouri: “Missouri Attorney General May Face Inquiry over Money from Lobbyists” by Eric Lipton for New York Times

Campaign Finance

“Donors Get Special Access to GOP Governors as Potential 2016 Contenders” by Matea Gold for Washington Post

California: “Once a Crusader against Big Money, Gov. Brown is Collecting Millions” by Michael Finnegan and Ben Welsh for Los Angeles Times

New Mexico: “PRC Member Told He Can’t Pay Himself to Campaign” by Thomas Cole for Albuquerque Journal

Texas: “Ethics Commission Approves Dark Money Regulation” by David Saleh Rauf (San Antonio Express-News) for Austin American-Statesman

Ethics

Alabama: “Jury Finds Alabama Lawmaker Not Guilty of Perjury” by Kim Chandler (Associated Press) for Seattle Post-Intelligencer

Ohio: “State Rep. Sandra Williams Found Guilty of Profiting from Ohio State Football Tickets” by Jim Siegel for Columbus Dispatch

South Carolina: “Bobby Harrell: A quick rise to power, and a quicker fall” by Jeremy Borden and Schuyler Knopf for Charleston Post & Courier

Texas: “Houston Drops Subpoenas to Get Speeches from Pastors Opposed to Anti-Discrimination Ordinance” by The Associated Press for Fox News

Elections

“Election Could Tip Historic Number of Legislatures into Republican Hands” by Reid Wilson for Washington Post

California: “L.A. Officials to Consider Ballot Measures to Change Election Years” by David Zahniser for Los Angeles Times

Louisiana: “Louisiana’s Rogues Yield to National Issues” by Campbell Robertson and Jonathan Martin for New York Times

Minnesota: “Campaigning to Extend, or End, One-Party Rule” by Monica Davey for New York Times

Montana: “Stanford Research Gaffe: School apologizes to Montana voters for ‘election guide’” by Katy Murphy for San Jose Mercury News

South Carolina: “State Election Officials Opt to Delay Election in Bobby Harrell’s Old House Seat” by Jeremy Borden for Charleston Post & Courier

Political Advertising

“In Democratic Election Ads in South, a Focus on Racial Scars” by Jeremy Peters for New York Times

State and Federal Communications held its 5th Annual Halloween Donut and Cider Sale today in the lobby of our office. It was all for the good cause of helping our friends at United Way of Summit County.

We knew we couldn’t host a Halloween sale without a few wacky costumes, so our office party was “pay-to-play,” with a $5 entry to star in our costumes-of-choice.

Take a look at some of the office revelry:

Independent candidate Tom Ervin suspended his campaign for governor this week and endorsed Democratic Sen. Vincent Sheheen. Ervin, a self-funded attorney and former judge, had the support of just 3.9 percent of likely voters, according to an October 1 Winthrop poll.

The poll also indicated Gov. Nikki Haley led Sheheen by a 43.6 percent to 33.6 percent margin. Haley, the state’s first female and Indian-American governor, beat Sheheen in 2010 with 51.4 percent of votes.

National:

In Democratic Election Ads in South, a Focus on Racial Scars

New York Times – Jeremy Peters | Published: 10/29/2014

Democrats in the closest U.S. Senate races across the South are turning to racially charged messages jolt African-Americans into voting and stop a Republican takeover in Washington. The images and words they are using are striking for how overtly they play on fears of intimidation and repression. And their source is surprising. The effort is being led by national Democrats and their state party organizations – not, in most instances, by the shadowy and often untraceable PACs that typically employ such provocative messages.

Lobbyists, Bearing Gifts, Pursue Attorneys General

New York Times – Eric Lipton | Published: 10/28/2014

State attorneys general are now the object of aggressive pursuit by lobbyists and lawyers who use campaign contributions, personal appeals at lavish corporate-sponsored conferences, and other means to push them to drop investigations, change policies, negotiate favorable settlements, or pressure federal regulators, found an investigation by The New York Times. A robust industry of lobbyists and lawyers has blossomed as attorneys general have joined to conduct multistate investigations and pushed into areas as diverse as securities fraud and Internet crimes. But unlike the lobbying rules covering other elected officials, there are few “revolving-door” restrictions or disclosure requirements governing state attorneys general.

Federal:

FEC Deadlock Keeps Internet Free from Broadcast Campaign Ad Regulations

Washington Times – Stephan Dineen | Published: 10/26/2014

Democrats on the FEC want to extend the agency’s reach to online political ads, a change in policy that critics fear could lead to tough new limits on speech. The FEC deadlocked on whether to investigate Checks and Balances for Economic Growth, a group that ran a pair of online advertisements attacking President Barack Obama and U.S. Sen. Sherrod Brown. While the organization may have spent close to a million dollars on the ads, it did not file any disclosure reports with the FEC, as it would have if the ads were run on television or radio. The carve-out for online-only communications has existed for more than eight years, but FEC Vice Chairperson Ann Ravel said the rules have not kept pace with the changing times.

From the States and Municipalities:

Arizona – Lobbyists Aid Campaigns of Doug Ducey, Fred DuVal

Arizona Republic – Yvonne Wingett Sanchez and Rob O’Dell | Published: 10/26/2014

Arizona gubernatorial candidates Fred DuVal and Doug Ducey have each relied heavily on the state’s lobbying corps for advice and to finance their campaigns. Combined, the candidates have collected at least $435,000 from donors who have registered as lobbyists and many of whom hope to have access to the next governor and his administration. “Lobbyists are premier players on both sides, and these lobbyists represent big interests that have large stakes in the outcome of the election; they do what comes naturally – they try to influence the results,” said Larry Sabato, director of the University of Virginia’s Center for Politics.

District of Columbia – Ethics Reforms Shepherded by Bowser Look Better in Hindsight, Some Say

Washington Post – Mike DeBonis | Published: 10/28/2014

When the District of Columbia Council passed an ethics reform bill more than two years ago, Councilperson Tommy Wells said the bill’s lack of teeth was “embarrassing.” Now, Wells supports the legislation, which was shepherded through the council by Muriel Bowser, who is running for mayor. It is an indication of how Bowser’s much-criticized ethics package looks considerably better in hindsight. Observers say they have seen a marked improvement in the city government’s handling of ethics matters, even if there is more room for improvement.

Georgia – Five Questions the Georgia State Ethics Investigation of Governor Nathan Deal’s 2010 Campaign Never Answered

Atlanta Magazine – Jim Walls | Published: 10/23/2014

During this year’s election season, questions about ethics allegations filed against Georgia Gov. Nathan Deal four years ago have grown stronger. His opponent, Jason Carter, returns to them almost daily. Technically speaking, all the complaints against Deal were resolved in 2012, when he paid $3,350 in administrative fees for filing defective campaign and personal finance disclosures. But a review of the state ethics commission’s files shows the investigation leading to that settlement was never really completed. Commission staffers abandoned inquiries into tens of thousands of dollars spent on air travel and credit card charges, and questioned no one but lawyers for the campaign accused of wrongdoing.

Kentucky – State Rep. Keith Hall Indicted on Bribery Charge

Lexington Herald-Leader – John Cheves | Published: 10/23/2014

A federal grand jury indicted Kentucky Rep. Keith Hall on bribery charges, alleging he paid a state inspector more than $46,000 to ignore environmental violations at his Pike County coal mines. The indictment also charged the inspector, Kelly Shortridge, who resigned in February from his job in the Kentucky Division of Mine Reclamation and Enforcement. The indictment alleges Hall paid bribes to Shortridge as bogus consulting fees, most of them from a company owned by Hall through a shell corporation.

New York – Mayor’s Old Pal Wins New Biz as Lobbyist

Crain’s New York Business – Chris Bragg | Published: 10/26/2014

Soon after vetting administration hires as a member of New York City Mayor Bill de Blasio’s transition team, Harold Ickes opened a New York branch of his K Street lobbying firm, the Ickes & Enright Group. He and his employees have since lobbied a dozen de Blasio administration officials for a rapidly growing number of clients. In recent months, the Ickes & Enright Group has signed a number of clients seeking to influence local government. At the same time, Ickes remains a key de Blasio political adviser.

Ohio – State Rep. Mallory Pleads Guilty to Improperly Accepting, Disclosing Gifts from Lobbyists

Columbus Dispatch – Jim Siegel | Published: 10/29/2014

Ohio Rep. Dale Mallory pleaded guilty to two misdemeanor ethics law violations related to taking Cincinnati Bengals tickets from lobbyists then failing to properly report them on required disclosure forms. The Joint Legislative Ethics Committee referred Mallory for prosecution after finding he improperly accepted tickets from payday lending industry lobbyists in 2009 and 2013 that exceeded the $75 gift limit. Lawmakers also must disclose any gift valued at over $25. A pair of lobbyists connected to the matter have already pleaded guilty to misdemeanor charges.

Oklahoma – Rule Change Will Allow Lobbyists to Spend More on Oklahoma Lawmakers

The Oklahoman – Rick Green | Published: 10/27/2014

Current rules limit to $100 the amount a lobbyist can spend on an Oklahoma lawmaker, but that amount can be multiplied by the number of clients the lobbyist represents. Under new rules that take effect next year, lobbyists will be limited to spending $500 on a particular lawmaker, no matter how many clients they represent. The net effect will be that some lobbyists, particularly those with fewer clients, could see an increase in the amount of money they can spend per legislator, and some, particularly those with numerous clients, could see a decrease.

Pennsylvania – Pa. Lobbyist Fees Increased to Pay for Public Disclosure Database

Harrisburg Patriot-News – Christian Alexandersen | Published: 10/23/2014

The Independent Regulatory Review Committee voted to increase Pennsylvania’s lobbyist registration fee from $200 to $300. The increase will go to offset the cost of maintaining the department of state’s online disclosure database. The state attorney general’s office must review the committee’s decision in the next 30 days before the fee increase can be implemented for the 2015-2016 legislative session. The attorney general is expected to approve the increase.

Pennsylvania – Pennsylvania Justice in Porn Email Scandal Retires

Greenfield Reporter – Mark Scolforo and Marc Levy (Associated Press) | Published: 10/27/2014

Pennsylvania Supreme Court Justice Seamus McCaffery, embroiled in an email pornography scandal and accused of other workplace misconduct, retired days after he was suspended from his job. McCaffery, who served for nearly seven years, was named in a review by the court’s chief justice as exchanging hundreds of pornographic emails with lawyers in the Pennsylvania attorney general’s office. McCaffery also was accused of authorizing hundreds of thousands of dollars in referral payments by personal injury law firms to his wife, helping fix a traffic ticket she received, and improperly attempting to influence the assignment of judges in the Philadelphia Court of Common Pleas.

South Carolina – Bobby Harrell: A quick rise to power, and a quicker fall

Charleston Post & Courier – Jeremy Borden and Schuyler Knopf | Published: 10/24/2014

When Bobby Harrell first entered the South Carolina Legislature in 1993, he quickly proved adept at moving up the ranks. When he became House speaker in 2005, some members expected the gregarious leader with an open-door policy would usher in a new era of inclusion. Harrell’s charm remained as strong as ever, but he did not shy away from flexing the considerable power of the speaker’s office when he felt he needed to. Harrell’s resignation due to ethics violations has generated sympathy in Columbia, but observers also see a cautionary tale. His critics have said Harrell had begun to feel “bulletproof,” becoming more focused on the trappings of his leadership position than legislative agendas and policy.

Texas – Ethics Commission Approves Dark Money Regulation

Austin American-Statesman – David Saleh Rauf (San Antonio Express-News) | Published: 10/29/2014

The Texas Ethics Commission approved a new rule that requires so-called dark money groups to reveal their donors. At the heart of the commission’s regulation is an attempt to determine when a nonprofit’s political activity crosses the line to qualify it as a bona fide PAC that is required under state law to disclose donors. Under the new rule, a nonprofit would have to start disclosing donors if 25 percent or more of its expenditures can be classified as politically motivated. It also would require disclosure if political contributions account for more than 25 percent of the group’s total donations in a calendar year.

Virginia – McAuliffe’s New Virginia Ethics Panel Meets for First Time

Washington Post – Laura Vozzella | Published: 10/27/2014

Virginia Gov. Terry McAuliffe’s ethics reform commission is poised to recommend a tightening of gift and travel rules for state leaders, but consensus proved more difficult on other points during the panel’s first meeting. The Commission on Integrity and Public Confidence in State Government plans to have recommendations ready by December 1. It will be up to the General Assembly to write the actual rules. The commission also decided to move redistricting reform to the front burner after a federal judicial panel ruled the state’s Third Congressional District lines are unconstitutional.

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.

The Mississippi Supreme Court has sided with Sen. Thad Cochran, ending a protracted legal battle over the results of the Republican primary runoff election. Chris McDaniel challenged Cochran’s victory in a lawsuit filed in August, claiming Democratic voters illegally participated in the Republican primary.

The court dismissed the suit because it was past the 20 day deadline imposed by common law to challenge an election result. Though the state election laws have changed since the case creating the deadline, the McDaniel campaign argued no such requirement was ever codified.

The state Supreme Court was not persuaded and concurred with the lower court’s dismissal.

Seal of the Judiciary of Mississippi by Connormah on Wikimedia Commons.