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

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

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

September 8, 2014  WGR Toastmasters, Washington, D.C.

September 11-12, 2014   PLI: Corporate Political Activities Seminar, Washington, D.C.

September 22, 2014  WGR Toastmasters, Washington, D.C.

September 29 – October 1, 2014   PAC State and Local Government Affairs Conference, Alexandria, Virginia

July 1, 1993, is when it all began for State and Federal Communications. It is hard to believe it has been 21 years.

Last September, Jason Nazar wrote an article in Forbes magazine, 16 Surprising Statistics About Small Businesses. Here are a few of his points:

1. The Small Business Administration defines a small business as an enterprise having fewer than 500 employees.
2. There are 28 million small businesses in the United States. And, this does not include the 22 million self-employed people with no additional payroll or employees.
3. Since 1995, small businesses have generated more than 65% of the net new jobs.
4. Seven out of 10 new employers survive at least two years, half at least five years, a third at least 10 years, and a quarter stay in business 15 years or more.

I had to read that last one a few times because we have definitely exceeded it. I only review these articles when I am reflecting on another year in business. I hardly study it nor do I count where we stand in the percentage of small businesses who have reached milestones.

So, how do we keep things moving? Just a few things…

1. Do the next right thing.
2. Do what you said you would do.
3. Ask someone if you need help.
4. Remember Scar from The Lion King? Life’s not fair. Deal with it.
5. Most luck comes from general hard work.
6. It’s work…If it was a lot of fun, it would be called recess.
7. Admit mistakes when made…It really does make you feel better.
8. Bump in the road? Jump over it and keep moving forward.
9. Nothing short of right is right. [Hat tip to Bill Taylor, first director of Kent State University School of Journalism.]
10. If it is to be, it is up to me.

I am not Peter Drucker, Mary Follett, or Max Weber. I am not even Ben Stein…but I was raised by working parents with the Midwestern work ethic, which is basically the belief that hard work and perseverance, rooted in quiet humility, pays off in the long run.

We are up to the challenge. In 2014, we now have 38 people on staff to help you know what is important about lobbying, political contributions, and procurement lobbying in the United States, federal government, more than 250 municipalities, and Canada.

Thank you for being our clients, colleagues, vendors, and friends. Watch out for what’s next.

Thank you,

Elizabeth Z. Bartz
President and CEO
@elizabethbartz

State Sen. Johnny Key has vacated his seat in order to coordinate lobbying efforts for the University of Arkansas system as the associate vice president for university relations.

Gov. Mike Beebe will not call a special election to fill the empty seat due to the expected costs and logistical hurdles of replacing Key, whose term ends in January 2015.

Scott Flippo won the Republican nomination for the District 17 seat in June and will not have a Democrat challenger in the November election.

National:

Move on for DRPA to Reveal Vendors’ Political Donations

Philadelphia Inquirer – Paul Nussbaum | Published: 7/30/2014

The Delaware River Port Authority’s (DRPA) audit committee reviewed a proposal to restore public access to vendors’ political contributions. Under current rules, contractors doing or seeking business with the DRPA must disclose to the agency any political contributions made in Pennsylvania and New Jersey. But the DRPA withholds those reports from the public. New Jersey’s “pay-to-play” laws require contractors of state agencies to disclose their political contributions, which must be a matter of public record. But the DRPA, as a bi-state creation of Pennsylvania and New Jersey, is not bound by that “pay-to-play” law.

Federal:

Koch-Backed Seniors Group Low-Balling Election Spending?

The Center for Public Integrity – Michael Beckel | Published: 7/30/2014

A review by The Center for Public Integrity appears to show the 60 Plus Association appears to have vastly understated its level of election spending on federal tax filings. The organization told the FEC it spent about $4.6 million on political ads and “voter contact” phone calls endorsing or denouncing federal candidates during the three months prior to the 2012 election. But it reported spending $35,000 on “direct and indirect political campaign activities” during its entire 2012 fiscal year to the IRS. It did not count toward that amount $4 million in spending it reported separately as “educating seniors by influencing the election of political candidates.”

Mini-Mega Donors Dominate Downtown Giving

Roll Call – Kate Ackley | Published: 7/29/2014

Individual lobbyists typically do not reach into the highest levels of personal campaign contributions; that is an echelon billionaires dominate. But K Street’s elite “mini-mega” donors have gone past the former federal limit of $123,200 the U.S. Supreme Court threw out this spring in its McCutcheon decision. Now that lobbyists can give to all congressional candidates, as well as to party coffers and PACs, K Street’s biggest donors have to search for new ways of saying “no.” And sometimes that translates into a simple “yes.”

Outside Money Drives a Deluge of Political Ads

New York Times – Ashley Parker | Published: 7/27/2014

In the first full midterm election cycle where outside groups have developed a sophisticated infrastructure, the consequences are already becoming apparent: a harshly negative tone dictated by the groups and a nearly nonstop campaign season that could cause voters to tune out before Election Day. The impact can be especially magnified during midterm elections because outside organizations are not distracted by a presidential race and can allocate even greater resources to single congressional contests. In many cases, candidates in individual districts, or even states, are no match financially for groups that oppose their politics.

From the States and Municipalities:

Arkansas – Tough Road for Ethics, Term Limits Item

Arkansas Business Journal – Andrew DeMillo (Associated Press) | Published: 7/27/2014

A ballot proposal to restrict lobbyists’ gifts to lawmakers and loosen Arkansas’ term limits was touted as a compromise way to put major ethics reforms on the November ballot. But the proposed constitutional amendment is facing growing opposition focused primarily on its term limits provisions. The state Republican Party’s vote to oppose the ballot measure was the latest sign of trouble for a proposal that does not have an organized campaign on its behalf and turned into a political liability for several GOP lawmakers during the spring primary campaign.

Florida – Why Won’t Florida GOP Leaders Talk about Hunting Trips to King Ranch in Texas?

Tampa Bay Times – Michael Van Sickler and Craig Putnam | Published: 7/25/2014

Florida Gov. Rick Scott in February 2012 visited the historic King Ranch in Texas, one of North America’s premier hunting grounds. State House leaders have accepted similar excursions in the past three years. The trips, records indicate, were financed all or in part with contributions from Florida’s sugar industry, right down to the hunting licenses. A 2006 state law prohibits lawmakers from directly accepting gifts like free meals and travel, but a loophole still allows them to be feted like VIPs.

Illinois – Alderman Pushes through Watchdog Limits Week after Being Probed

Chicago Tribune – Bill Ruthhart and Hal Dardick | Published: 7/30/2014

Ald. Patrick O’Connor quickly pushed through an ordinance that limits the ability of the city council’s watchdog to investigate aldermen’s campaign finances, a week after that investigator received permission to open an ethics probe of O’Connor. The measure sponsored by O’Connor could hinder Legislative Inspector General Faisal Khan’s ongoing campaign finance probes, including the one of O’Connor.

Illinois – Illinois State Fair Managers Fined for Violating Gift Ban, Taking Free Beer Tickets

The Tribune; Associated Press –   | Published: 7/28/2014

Illinois State Fair Director Amy Bliefnick and former Du Quoin State Fair chief John Rednour, Jr. were fined by the Executive Ethics Commission for doling out hundreds of free beer tickets to top officials and other fairgoers in violation of the state’s ban on officials receiving gifts. The report noted Bliefnick has accepted more than $100 worth of free beer tickets each year since she became fair manager in 2005; she was fined $1,000. Rednour was penalized $5,000 after he admitted he solicited up to $8,000 in tickets from a vendor.

Massachusetts – 3 Guilty in Probation Case

Boston Globe – Milton Valencia | Published: 7/24/2014

Former Massachusetts Probation Commissioner John O’Brien was found guilty in a scheme to rig the agency’s hiring process to favor applicants who had the backing of powerful state legislators. O’Brien’s top aide, Elizabeth Tavares, was convicted of aiding and abetting the scheme, and a deputy, William Burke III, was found guilty of participating in a racketeering conspiracy. Prosecutors say O’Brien and his aides doled out jobs to the friends of state lawmakers over more qualified candidates. In return, prosecutors alleged, the legislators routinely boosted the Probation Department budget.

Massachusetts – Massachusetts Lawmakers OK PAC Disclosure Bill

Columbus Republic – Steve LeBlanc (Associated Press) | Published: 7/30/2014

The Massachusetts Legislature passed a campaign finance bill that would immediately increase transparency for super PACs. It also doubles how much money individuals can give to state candidates each year from $500 to $1,000, beginning in 2015. House Bill 4366 is expected to be signed into law by Gov. Deval Patrick.

New York – U.S. Attorney Warns Cuomo on Ethics Case

New York Times – Susanne Craig, Thomas Kaplan, and William Rashbaum | Published: 7/30/2014

U.S. Attorney Preet Bharara, who is investigating New York Andrew Gov. Cuomo’s closing of an anti-corruption commission, is now threatening to probe the administration for possible obstruction of justice or witness tampering. The warning came after several members of the panel issued public statements defending the governor’s handling of the Moreland Commission, which Cuomo created last year with promises of cleaning up corruption in state politics but shut down abruptly in March.

Texas – Prosecutor: Price committed ‘shocking betrayal of public trust’

Dallas Morning News – Ed Timms and Kevin Krause | Published: 7/25/2014

Longtime Dallas County Commissioner John Wiley Price has been charged with accepting nearly $1 million in bribes. Price’s chief of staff and two political consultants were also charged in a 13-count indictment. U.S. Attorney Sarah Saldaña said that during a decade-long scheme, two political consultants, Kathy Nealy and Christian Campbell, provided Price with $950,000 in money, cars, and land. Authorities allege that in exchange for the bribes, Price voted in favor of lucrative contracts that were proposed by the consultants’ clients.

Virginia – Robert McDonnell Trial to Cast Unflinching Light on Virginia Couple’s Friends, Marriage

Washington Post – Matt Zapotosky | Published: 7/28/2014

The trial of former Virginia Gov. Robert McDonnell and his wife, Maureen, has begun in federal court. They are accused of accepting more than $165,000 in gifts and loans from Jonnie Williams, the founder of a dietary supplements company, in exchange for helping to promote his products. Strident language in court filings point to a no-holds-barred battle that will pit the motives and credibility of the former first couple against Williams, who will testify for the prosecution under immunity. Defense attorneys have suggested the case is politically motivated and prosecutors have stretched the meaning of federal bribery laws to cover routine and long-accepted political courtesies.

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.

Lobbying

“K Street’s power duo going global” by Megan R. Wilson in The Hill.

“Under Contract” in The Hill.

Arkansas: “State senator to resign, start work as lobbyist for UA System” by John Lyon in the Arkansas News.

Missouri: “In Columbia, Missouri Rep. Wright presses for lobbyist reform” by Cameron Dodd in the Missourian.

Rhode Island: “38 Studios lobbying hearing delayed again” by The Associated Press in WPRI News.

Campaign Finance

“These 5 Lobbyists Gave the Biggest Campaign Donations on K Street This Year” by Tess VandenDolder in InTheCapital.

“Ed Markey lobbyist haul tops on Hill” by Kimberly Atkins in the Boston Herald.

“Why All the Political Money Might Not Mean Much” by Walter Shapiro in the Brennan Center for Justice Blog.

Massachusetts: “Massachusetts lawmakers OK bill requiring timely disclosures by political action committees” by Steve LeBlanc (Associated Press) in The Republic.

Michigan: “Michigan House, Senate races marked by record fundraising, self-funded candidates” by Jonathan Oosting in Michigan Live.

Ethics

New York: “U.S. Attorney Warns Cuomo on Ethics Case” by Susanne Craig, Thomas Kaplan, and William K. Rashbaum in The New York Times.

Congress

“The Calm Before the Pre-Recess Storm” by Bridget Bowman and Colin Diersing in Roll Call.

New Jersey Gov. Chris Christie has called a special legislative session for Thursday, July 31. The session will convene at noon with Christie detailing his recommendations for amendments to the state’s bail system.

Christie is asking the legislators to consider a constitutional amendment allowing judges to deny bail to defendants considered dangerous or a flight risk, as well as legislation offering a non-monetary option for pre-trial release based on a risk assessment.

A constitutional amendment requires voter approval, and the amendment must pass both houses with 60 percent majorities by Monday, August 4, to make it on the ballot in November.

Lobbying

“Lobbying World” in The Hill.

“Business Bottom Line” in The Hill.

“New GOP whip hires retail lobbyist for leadership office” by Megan R. Wilson in The Hill.

“Lobbyists quietly advise GOP on gay marriage shift” by Megan R. Wilson in The Hill.

Campaign Finance

“The super PAC to end super PACs leaps into New Hampshire and Iowa” by Brian Fung in The Washington Post.

Kentucky: “Kentucky State Rep. Ben Waide Indicted on Campaign Finance Violations” by Jonathan Meador on WKMS.

New York: “De Blasio defends lobbying group’s contributions from firms that do business with the city” by Erin Durkin in the New York Daily News.

Ethics

Florida: “Convicted lobbyist testifies about paying $3,000 bribe to suspended Miami Lakes Mayor Michael Pizzi” by Jay Weaver in the Miami Herald.

Illinois: “Ethics panel raps state fair directors for beer ticket freebies” by Dave McKinney in the Chicago Sun-Times.

New York: “Defiant, Cuomo Denies Interfering With Ethics Commission” by Thomas Kaplan and Susanne Craig in The New York Times.

State Legislatures

“Christie calls N.J. Legislature into special session Thursday to act on bail reform” by Matt Friedman in The Star-Ledger.

Government Tech and Social Media

“State and Local Govs Not Ready For Mobile, Survey Says” by Colin Wood in Government Technology.

“C-SPAN limiting access to its online channels” by Julian Hattem in The Hill.

Gov. Jack Markell has called a special legislative session to convene October 8, 2014.

The purpose of the special session is to confirm a new state Supreme Court justice after the abrupt resignation of sitting Justice Carolyn Berger.

The nominee, Leo Shrine, currently sits on the bench of the Delaware Chancery Court.

The Legislative Assembly of New Brunswick convened July 29, 2014, for a one day special session to address pension changes for retirees.

The Assembly plans to amend the Pension Benefits Act to include retirees from Fraser Papers, a local pulp mill that filed for bankruptcy in 2009, in an increased pension payout scheme.

More than 1,200 retirees will benefit from the amendment.

A libertarian group has filed a lawsuit in federal court to remove the state’s aggregate limit on political contributions. The Liberty Group, on behalf of Dan and Carleen Brophy, sued Secretary of State Max Maxfield claiming the state’s aggregate limit of $25,000 per two-year cycle unconstitutionally restricts free speech.

The state has declined to follow Maryland and Massachusetts in issuing orders not to enforce state law following the U.S. Supreme Court’s ruling in McCutcheon v. Federal Election Commission.

In June, a majority of the Joint Corporations, Appropriations, and Political Subdivisions Interim Committee voted to order staff to draft a bill repealing a new limit for PAC contributions as well as the existing aggregate limit.

Lobbying

“Bombshell: Ethics office alleges illegal lobbying” by Megan R. Wilson in The Hill.

“Lobbying business in state of upheaval” by Megan R. Wilson in The Hill.

“Wall Street spending $1.5M a day on lobbying, campaigns” by Benjamin Goad in The Hill.

“D.C. lobbying firms see revenue lift in first half of 2014” by Tucker Echols in Washington Business Journal.

“How Facebook Became One of the Biggest Power Players on K Street” by Tess VandenDolder in InTheCapital.

“U.S. lawmakers got cash from Alberta’s Keystone lobbyists” by Laurent Bastien Corbeil and Les Whittington in The Star.

Campaign Finance

“Outside Money Drives a Deluge of Political Ads” by Ashley Parker in The New York Times.

Alaska: “Marijuana legalization backers file campaign finance complaint against opposition group” by Laurel Andrews in the Alaska Dispatch News.

Arizona: “Scottsdale ruling: No campaign violation in mailers” by Beth Duckett in The Republic.

Maine: “Senate president’s PAC faces campaign finance fine” by The Associated Press in the Washington Times.

Massachusetts: “Officials appear to misuse Mass. campaign funds” by David Scharfenberg in The Boston Globe.

Nevada: “Former Nevada lobbyist fights order to report to federal prison amid campaign finance appeal” by The Associated Press in the Daily Journal.

West Virginia: “Election, ethics laws put agencies at odds” in the Charleston Daily Mail.

Ethics

Hawaii: “Disclosures won’t begin until 2015, ethics panel says” by The Associated Press in The Maui News.

Virginia: “Virginia Ex-Governor’s Defense to Rest on State Ethics” by Andrew Zajac and Peter Galuszka in Bloomberg.

Government Tech and Social Media

“Civic Tech and Engagement: Announcing a New Series on What Makes it ʹThickʹ” by Micah L. Sifry in TechPresident.

New York: “NYC Open Data Advocates Focus on Quality And Value Over Quantity” by Miranda Neubauer in TechPresident.

On July 24, the Ontario, Canada, Legislature adjourned its session with unanimous consent until October 20, 2014. According to The Record, legislators will continue to work over the summer to address budget issues. “Make no mistake, this is not an extended vacation that MPPs are going on, and certainly I will be working very hard over the coming weeks to prepare for all the implementation that comes with the passage of the budget,” said Premier Kathleen Wynne.

Photo of the Ontario Legislative Assembly Building by Antoien Cadotte in Wikimedia Commons.

The Hawaii State Ethics Commission voted Wednesday to withhold from the public all financial disclosure statements filed by public officials prior to July 8. The decision came in response to a new law expanding the list of financial disclosure statements to be made publicly available.

More than two dozen volunteer board members resigned since the bill’s passing, citing privacy concerns over the release of information regarding income, investments, real estate holdings, and business interests of members, their spouses, and their dependent children.

Les Kondo, executive director of the Ethics Commission, initially interpreted the law as requiring public disclosure of statements already on file. A state deputy attorney general recently found retroactive application of the law to be inappropriate; the financial information of those who resigned will remain confidential and active members’ statements will not be made public until filing again in 2015.

Maryland State Flag

County Executive Ken Ulman gave to charity the $34,000 in campaign contributions he received from insurance executive Jeffrey B. Cohen, who was indicted last month on federal fraud charges. Cohen has been accused of misrepresenting the amount of cash his company had available to provide liability insurance to thousands of bars, restaurants, and strip clubs.

Although current Maryland election law requires political contributions to be used only for campaigns, the state Board of Elections issued a waiver. Ulman, who is Democrat Anthony Brown’s running mate for governor, donated Cohen’s contributions to the Maryland Crime Victims Network and the United Way of Central Maryland.