June 27, 2014 •
News You Can Use Digest – June 27, 2014
National: Wisconsin Governor Scandal Shows States as New Front in Fight for Dark Money Disclosure Sunlight Foundation – Stan Oklobdzija | Published: 6/25/2014 As prospects for any regulations at the federal level seem murky at best, it appears the fight […]
National:
Wisconsin Governor Scandal Shows States as New Front in Fight for Dark Money Disclosure
Sunlight Foundation – Stan Oklobdzija | Published: 6/25/2014
As prospects for any regulations at the federal level seem murky at best, it appears the fight against clandestine political donors may be leaving Washington, D.C. and entering statehouses around the country. The Sunlight Foundation reported that at least 18 bills introduced during the most recent legislative sessions in various states would impose new disclosure rules or amend existing regulations regarding independent expenditures.
Federal:
Thousands of Missing Emails at IRS: What’s it all about?
Los Angeles Times – Joseph Tanfani | Published: 6/24/2014
IRS Commissioner John Koskinen disclosed that emails sent by Lois Lerner, the former director of the agency’s division that oversaw tax-exempt groups, were lost when her computer hard drive crashed in 2011. Koskinen told Congress that eight other hard drives from potential recipients had crashed as well. Republicans have seized on the missing emails, alleging in hearings that their disappearance is evidence of a cover-up by the IRS over a scheme to target conservative nonprofits seeking tax exempt status.
Venture Capital Firm Settles S.E.C. Charges over ‘Pay-to-Play’
New York Times – William Alden | Published: 6/20/2014
TL Ventures agreed to pay almost $300,000 to settle charges it violated the Securities and Exchange Commission’s “pay-to-play” rules. The SEC prohibits investment firms from providing paid services to a government client for two years after a contribution by the firm or an employee to candidates or officials who could influence the management of public assets. The agency said TL Ventures continued to receive advisory fees from the city and state pension funds immediately following campaign donations made by an associate in 2011 to the Pennsylvania governor and a candidate for mayor of Philadelphia.
From the States and Municipalities:
Florida – Unknown Candidate for Governor with Questionable Donations Asks State for Public Campaign Money
Naples Daily News – Matt Dixon | Published: 6/20/2014
Obscure Florida gubernatorial candidate Yinka Adeshina has received 12 campaign contributions worth $3,000 from an address listed as 400 West Park in Tallahassee. But that address would fall in the middle of Tallahassee’s Old City Cemetery. Another six contributions worth $1,500 came from donors who share an address with a Best Buy. Adeshina lists a total of $182,080 in donations, which would make her eligible to receive nearly $100,000 in public funds for her campaign.
Georgia – Changes Ahead for Ga. Ethics Commission
Macon Telegraph – Christina Cassidy (Associated Press) | Published: 6/21/2014
The Georgia ethics commission has been mired in staffing issues, lawsuits, and allegations of outside influence. Now that the commission has opted to avoid what could have been a lengthy court battle and settle with three former employees, a key question is whether the agency will finally begin to make progress on more than 100 cases that have remained opened for months and sometimes years. The commission hopes to jumpstart the process of resolving cases by hiring up to two staff attorneys in the next month or two.
Hawaii – An Inside Look at the Hawaii Super PAC That Helped Defeat Cayetano
Honolulu Civil Beat – Nick Grube | Published: 6/19/2014
PRP, an advocacy group for the Hawaii Carpenters Union and contractors, spent more than $3 million in 2012 to dismantle Ben Cayetano’s Honolulu mayoral campaign and keep the city’s $5.26 billion rail project on track. Emails obtained as part of Cayetano’s defamation lawsuit against the group provide an unprecedented glimpse of the behind-the-scenes operations of one of Hawaii’s most powerful independent expenditure committees. Such groups are allowed to receive and spend unlimited amounts of money on political campaigns.
Illinois – Event Honoring Quinn Raises ‘Pay to Play’ Issues
Washington Times – Carla Johnson (Associated Press) | Published: 6/20/2014
The Roosevelt Group, a lobbying firm with close ties to a key subcontractor hired to promote the nation’s health care law in Illinois, hosted a fundraiser for the Democratic Governors Association (DGA) “honoring Pat Quinn,” according to an invitation that lists suggested sponsorship levels of between $2,500 and $20,000. The DGA formed a PAC last fall to support Quinn’s re-election as governor. Critics said the event raises questions about “pay-to-play” in the state’s highly competitive governor’s race.
Indiana – IEDC Contractor Steers Indiana Investment Funds to Firms Run by Its Chairman and His Son
Indianapolis Star – Alex Campbell | Published: 6/19/2014
In 2011, Indiana hired the private nonprofit Elevate Ventures to choose startup companies to receive taxpayer dollars. An Indianapolis Star investigation has uncovered possible conflicts-of-interest in the arrangement, which has triggered a federal probe. The newspaper discovered a company run by Elevate founder Howard Bates received $500,000 in state money from an Elevate-run fund. Elevate was authorized to distribute the money to the companies connected to Bates without state approval, despite the fact it was public money.
Massachusetts – House Supports Super PAC Disclosure Bill, Boosts Donation Limits
MassLive.com – Colleen Quinn (State House News Service) | Published: 6/25/2014
The Massachusetts House passed legislation that would require corporations, labor unions, and other entities to disclose expenditures in statewide, county, or local races, as well as the sources of their funding, within seven days. The top five donors to an independent expenditure group would also have to be listed in the organization’s television or newspaper advertisement. House Bill 4226 raises the individual limits on annual campaign contributions for any one candidate from $500 to $1,000.
Mississippi – How Cochran Bounced Back from Disaster
Politico – Alexander Burns | Published: 6/25/2014
Following Mississippi’s June 3 Republican primary, U.S. Sen. Thad Cochran’s staff members were crestfallen at the results of an election that deprived the incumbent of an electoral majority. With Cochran forced into a run-off against an aggressive and energetic challenger, a dark mood shadowed his backers in Washington and Mississippi. Yet almost immediately, the Cochran coalition began bouncing back. One aide paraphrased Cochran adviser Stuart Stevens’ primary-night message: “We’re going to figure this out and it’s going to be something you remember for the rest of your life.”
Nebraska – Lobbying Report Shows Millions Spent to Influence State Senators
Lincoln Journal Star – JoAnne Young | Published: 6/20/2014
A report by Nebraska Common Cause said special interests spend nearly $14 million a year to influence state lawmakers. But the watchdog maintains it is difficult to measure the full impact of lobbying money on the Legislature. Senators must report only gifts valued over $100. The companies and organizations that hire lobbyists only report total expenditures; food and beverages are exempt. And golf outings, luncheons, holiday gifts, birthday gifts, wedding presents, and tickets to events are difficult to track to specific senators, said the report.
South Carolina – SC Ethics Reform Bill Dies
The State – Andrew Shain | Published: 6/19/2014
South Carolina’s legislative session ended without the Senate voting on an ethics reform measure that Republicans who took the podium to run out the clock denounced as too watered down. The bill’s key components required officeholders to disclose all of their income sources, though not the amounts, and required third-party groups raising money to defeat or elect candidates to disclose their donors and expenses. An ethics bill can be reintroduced in January when a new session begins.
Virginia – Va. Officials Skeptical of U.S. Interest in Phillip Puckett’s Resignation from State Senate
Washington Post – Laura Vozzella, Matt Zapotosky, and Jenna Portnoy | Published: 6/19/2014
Federal investigators have interviewed officials and sought documents in connection with the resignation of then-state Sen. Philip Puckett, which handed Republicans control of the Virginia Senate at a critical time and was connected to job prospects for him and his daughter. Puckett said there was no quid pro quo but withdrew his name from consideration for a top job with the state tobacco commission. But even some of Puckett’s most prominent critics expressed mixed feelings about a federal inquiry into a matter that many considered unseemly but not criminal.
Wisconsin – Conservative Group Targets State’s Political Committee Donation Limits
Wisconsin State Journal – Matthew DeFour | Published: 6/24/2014
A federal lawsuit has been filed challenging a Wisconsin law that limits the aggregate amount of money candidates can collect from PACs. The Wisconsin Institute for Law and Liberty (WILL) filed the lawsuit on behalf of the political arm of conservative group CRG Network. CRG argues its First Amendment rights to free speech and free association have been denied because of the limits. The institute’s legal team previously won a case challenging the cap on aggregate donations by individuals.
Wisconsin – Scott Walker Case Shows Growing Closeness between Politicians and Wealthy Allies
Washington Post – Matea Gold and Tom Hamburger | Published: 6/23/2014
The investigation of Wisconsin Gov. Scott Walker and his allies over alleged illegal coordination has been challenged as unconstitutional, and it is unclear if it will proceed. Still, the inquiry is being watched closely by campaign strategists and legal experts as a major test of what practices cross the line in the loosely governed and increasingly murky area of big-money politics. The growing influence of super PACs and politically active nonprofits, which can raise unlimited funds, has eroded the once-thick wall between official campaigns and outside interest groups.
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June 26, 2014 •
Thursday News Roundup
Lobbying “Lobbying World” in The Hill. “Under Contract” in The Hill. Campaign Finance “Karl Rove and the Modern Money Machine” by Kenneth Vogel in Politico. Louisiana: “Gov. Jindal signs campaign finance reforms into law” by Tom Wright on WVUE Fox […]
Lobbying
“Lobbying World” in The Hill.
“Under Contract” in The Hill.
Campaign Finance
“Karl Rove and the Modern Money Machine” by Kenneth Vogel in Politico.
Louisiana: “Gov. Jindal signs campaign finance reforms into law” by Tom Wright on WVUE Fox News.
Massachusetts: “House supports super PAC disclosure bill, boosts donation limits” by Colleen Quinn on MassLive.com.
Ohio: “Prosecutor: Ohio man knew donations were illegal” by The Associated Press on WSYX ABC News.
Ethics
“Ethics panel defers Michael Grimm probe” by John Bresnahan in Politico.
Alabama: “Ethics Commission to search for new leader; AL senator expresses interest” by Max Reiss on WSFA News.
Georgia: “Former State Ethics Commission Secretary: The System Is Broken” by Ellen Reinhardt on Georgia Public Broadcasting.
Congress
“With 28 Days Left, What Can Congress Do?” by Molly O’Toole in Defense One.
National Conventions
“Cleveland, Dallas make cut for GOP convention” by James Hohmann in Politico.
Government Tech and Social Media
“Jason Chaffetz: Tech’s pace ‘scares a lot of members of Congress’” by Alex Byers and Jody Serrano in Politico.
Montana: “State notifies 1.3 million people whose data were in hacked computer” by Mike Dennison in the Independent Record.
June 26, 2014 •
Hawaii State Ethics Commission Approves Guidelines for Lawmakers
The Hawaii State Ethics Commission, in a 3-2 vote on June 18, approved new guidelines for lawmakers to follow in an effort to regulate the spending of their annual allowance. Each legislator receives almost $12,000 each year to cover incidental […]
The Hawaii State Ethics Commission, in a 3-2 vote on June 18, approved new guidelines for lawmakers to follow in an effort to regulate the spending of their annual allowance.
Each legislator receives almost $12,000 each year to cover incidental expenses related to legislative duties.
The legislative leadership welcomed the recommendations and will consider revising their current rules, despite failing to acknowledge the commission’s jurisdiction with regard to the matter.
June 26, 2014 •
Honolulu Ethics Commission Confronts Caldwell Administration
In an ongoing battle for independence, the Honolulu Ethics Commission sent a letter to Mayor Kirk Caldwell highlighting the latest affront by corporation counsel and asking the administration to demonstrate its commitment to a strong ethics program. The letter mentioned […]
In an ongoing battle for independence, the Honolulu Ethics Commission sent a letter to Mayor Kirk Caldwell highlighting the latest affront by corporation counsel and asking the administration to demonstrate its commitment to a strong ethics program.
The letter mentioned commission plans to investigate city employees suspected of getting paid for work they did not do. The suspected fraud is estimated to cost the city a quarter of a million dollars per year, and the commission requested authority to purchase a $600 GPS tracking device to use as part of its investigation. Donna Leong, the city’s corporation counsel, took five weeks to conditionally approve the purchase, by which time the investigative window had closed.
The Caldwell administration did not respond or comment on the letter; it will likely be discussed at the June 26 Ethics Commission meeting.
Paula Sophia, the first openly transgender officer in Oklahoma City Police Department history, is vying to become the state’s first openly transgender legislator. Sophia received enough votes in Tuesday’s primary to force a runoff for the Democratic nomination to represent […]
Paula Sophia, the first openly transgender officer in Oklahoma City Police Department history, is vying to become the state’s first openly transgender legislator. Sophia received enough votes in Tuesday’s primary to force a runoff for the Democratic nomination to represent Oklahoma House District 88.
Sophia will face former pastor Jason Dunnington in an August 26 runoff. There is no Republican challenger; the winner will bypass the general election as a member of the state legislature.
June 26, 2014 •
New Administrator for Alaska Legislative Ethics Committee
The Select Committee on Legislative Ethics hired a new administrator to succeed Joyce Anderson. Anderson is retiring July 11 after 13 years in the position. Reginald Drummond, her successor, begins his new job June 30. The two will work together […]
The Select Committee on Legislative Ethics hired a new administrator to succeed Joyce Anderson. Anderson is retiring July 11 after 13 years in the position.
Reginald Drummond, her successor, begins his new job June 30. The two will work together for several weeks during the transition.
Drummond is currently an assistant inspector general in the U.S. Army and is retiring from the military.
June 25, 2014 •
Rangel Likely Winner in NY’s 13th District
Rep. Charlie Rangel has likely defeated challenger state Sen. Adriano Espaillat in a hotly contested Democratic primary for New York’s 13th Congressional District. The district covers parts of New York City, including Harlem and the Bronx. While some news sources […]
Rep. Charlie Rangel has likely defeated challenger state Sen. Adriano Espaillat in a hotly contested Democratic primary for New York’s 13th Congressional District. The district covers parts of New York City, including Harlem and the Bronx.
While some news sources report the race is too close to call, with 100 percent of the precincts reporting, Rangel leads by 1,828 votes. Espaillat has not yet conceded the race because absentee and provisional ballots still remain uncounted. There are 980 valid absentee ballots and an unknown number of provisional ballots, all of which will be counted on July 2, 2014.
There is no Republican challenger for the 13th District seat so a win in the primary guarantees the victor a seat in Congress.
Rangel has served 22 terms in Congress and was once the chairman of the Ways and Means Committee. The veteran congressman has defeated Espaillat once before in the 2012 Democratic primary, winning by less than 1,000 votes.
June 25, 2014 •
SEC Charges Firm with Pay-to-Play Violation
For the first time, the U.S. Securities and Exchange Commission (SEC) has charged a firm with violations of its pay-to-play rules. On June 20, the SEC charged TL Ventures Inc., a private equity firm, with receiving advisory fees from the […]
For the first time, the U.S. Securities and Exchange Commission (SEC) has charged a firm with violations of its pay-to-play rules. On June 20, the SEC charged TL Ventures Inc., a private equity firm, with receiving advisory fees from the pension funds of both Philadelphia and Pennsylvania after an associate of the firm had made campaign contributions in 2011 to the governor and a candidate for mayor.
Federal regulations prohibit investment advisers and their covered associates who make contributions to officials of state and local government entities from providing compensatory advisory services for two years following a campaign contribution. TL Ventures Inc. has agreed to settle the charges by paying nearly $300,000.
June 25, 2014 •
Canada Fair Elections Act Receives Royal Assent
The Fair Elections Act to amend the Canada Elections Act has passed and received Royal Assent on June 19, 2014. Bill C-23 increases contribution limits to candidates and political parties from $1,200 to $1,500. Third-party advertising limits, currently imposed only […]
The Fair Elections Act to amend the Canada Elections Act has passed and received Royal Assent on June 19, 2014. Bill C-23 increases contribution limits to candidates and political parties from $1,200 to $1,500.
Third-party advertising limits, currently imposed only during a campaign period, will be imposed for all election advertising “in relation to a general election.”
The bill also increases penalties to $100,000 for intentional violations by corporations acting as a third party. The new limits are not effective until the next call for a general election at the federal level.
June 25, 2014 •
Lankford Defeats Shannon in Oklahoma GOP Senate Primary
U.S. Rep. James Lankford defeated former Oklahoma Speaker of the House T.W. Shannon in Tuesday’s GOP Senate primary. In November, Lankford will face the Democratic nominee for the state’s open U.S. Senate seat. The seat became available after GOP Sen. […]
U.S. Rep. James Lankford defeated former Oklahoma Speaker of the House T.W. Shannon in Tuesday’s GOP Senate primary. In November, Lankford will face the Democratic nominee for the state’s open U.S. Senate seat.
The seat became available after GOP Sen. Tom Coburn announced plans to step down with two years remaining on his term due to a recurring cancer battle.
Lankford is expected to win the seat easily in the deep-red state; Republicans hold every statewide office and both state legislative chambers.
June 25, 2014 •
Beauprez Claims Victory in Colorado GOP Gubernatorial Primary
Bob Beauprez came out on top in the Colorado GOP gubernatorial primary on Tuesday. The former congressman accepted his party’s nomination after besting fellow candidates Tom Tancredo, Scott Gessler, and Mike Kopp in a four-way race. GOP strategists worried a […]
Bob Beauprez came out on top in the Colorado GOP gubernatorial primary on Tuesday. The former congressman accepted his party’s nomination after besting fellow candidates Tom Tancredo, Scott Gessler, and Mike Kopp in a four-way race.
GOP strategists worried a Tancredo tea-party victory would hurt the Republican ticket in November and seem satisfied with the establishment win. All four GOP primary candidates intend to work as a team to support the new Republican nominee as he battles to unseat Democratic Gov. John Hickenlooper.
Republicans have chosen former Attorney General Henry McMaster as the party’s nominee for lieutenant governor. McMaster easily won the runoff against businessman Mike Campbell, the son of late Republican Gov. Carroll Campbell, despite campaign support from former Arkansas Gov. Mike […]
Republicans have chosen former Attorney General Henry McMaster as the party’s nominee for lieutenant governor. McMaster easily won the runoff against businessman Mike Campbell, the son of late Republican Gov. Carroll Campbell, despite campaign support from former Arkansas Gov. Mike Huckabee.
The win is also a positive for former Sen. Rick Santorum, who campaigned for McMaster in the closing days before the runoff.
McMaster will face Democrat state Rep. Bakari Sellers in the November general election.
In a tight race Tuesday, Mississippi Sen. Thad Cochran secured the GOP Senate nomination with 50.8 percent of the vote. Cochran battled tea party candidate Chris McDaniel in a federal runoff after neither candidate carried enough votes in the June […]
In a tight race Tuesday, Mississippi Sen. Thad Cochran secured the GOP Senate nomination with 50.8 percent of the vote. Cochran battled tea party candidate Chris McDaniel in a federal runoff after neither candidate carried enough votes in the June 3 primary to capture the nomination.
Although McDaniel’s campaign has not made a decision whether to challenge the results, Cochran’s win ends a somewhat bizarre and expensive political battle between the two candidates.
In November, Cochran will face Democrat Travis Childers; if elected, Cochran will serve a seventh consecutive Senate term.
June 25, 2014 •
DE General Assembly Passes Campaign Finance Bills
Two important campaign finance bills have passed the Delaware General Assembly and are on their way to Gov. Jack Markell’s desk. House Substitute No. 1 to House Bill 302 consolidates the three existing county boards of election into one state […]
Two important campaign finance bills have passed the Delaware General Assembly and are on their way to Gov. Jack Markell’s desk.
House Substitute No. 1 to House Bill 302 consolidates the three existing county boards of election into one state board with 11 members. The bill also authorizes the state election commissioner to prepare and publish manuals explaining the state’s campaign finance requirements to individuals, political committees, and others affected by the law.
House Bill 301 requires contributions from joint accounts to be attributed to the person authorizing the payment and establishes procedures for reallocation of contributions from joint accounts.
If the governor signs these bills, House Substitute No. 1 to House BIll 302 becomes effective January 1, 2015, and House Bill 301 becomes effective July 1, 2015.
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