The Board of Supervisors passed amendments to the city’s lobbying law at a meeting on June 17, 2014. Ordinance 130374 expands the definition of “lobbyist” and requires random audits of lobbying reports.

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

The ordinance will be effective 30 days following Mayor Ed Lee’s signature.

A June 24 federal runoff has been scheduled for the Mississippi Republican Senate primary. Incumbent Sen. Thad Cochran and state Sen. Chris McDaniel will battle again in a tea party vs. establishment showdown. With 49 and 49.5 percent respectively, neither candidate earned enough of the June 3 vote to secure the party nomination.

McDaniel, running on a platform of change, hopes to unseat the longtime incumbent. Cochran’s congressional tenure began in 1972; he then served three consecutive terms in the House and six consecutive terms in the Senate.

On June 18, the Kansas Ethics Commission dismissed a complaint accusing a candidate of soliciting contributions from lobbyists through social media, according to the Kansas City Star.

On May 1, while the Legislature was still in session, a Facebook page for former state Sen. Jean Schodorf’s campaign was posted seeking help to raise money for her political campaign for secretary of state. Clay Barker, the state GOP executive director, made a complaint after a lobbyist “liked” the page. State law prohibits candidates from seeking contributions from lobbyists while the Legislature is in session.

Schodorf told the Star the commission informed her they found no probable cause to believe she violated the law and dismissed the complaint.

Prosecutors claim Gov. Scott Walker was involved with a plan to illegally coordinate fundraising with outside conservative groups to help him and several Republican senators survive a 2012 recall election. In court documents recently unsealed, prosecutors detail a criminal scheme by Walker and top aides to circumvent state law by helping plan campaign spending by a dozen outside groups.

No charges have been filed against Walker or any of his staffers. The documents became public as part of an ongoing lawsuit by Wisconsin Club for Growth, a group at the center of the investigation. A federal appeals judge now is considering whether to permanently stop the investigation.

Photo of Gov. Scott Walker courtesy of Gage Skidmore on Wikimedia Commons.

 

National:

Population Shifts Turning All Politics National

New York Times – Ashley Parker and Jonathan Martin | Published: 6/15/2014

For all the talk about how partisan polarization is overwhelming Washington, there is another overlapping force at play: voters who are not deeply rooted in an area increasingly view politics through a generic national lens. It was newcomers from other parts of the country and even abroad to Virginia and Mississippi, more than any other voters, who most crucially rejected two influential Republican incumbents – House Majority Leader Eric Cantor and U.S. Sen. Thad Cochran – in recent primaries.

Federal:

Justices Say Public Workers Can Testify about Corruption

USA Today – Richard Wolf and Mary Orndorff Troyan | Published: 6/19/2014

The U.S. Supreme Court ruled unanimously that public employees are protected from retaliation when they testify in court about misconduct they observed on the job. Public employees who are called to testify are protected by the First Amendment just as other citizens are, and should not have to between “the obligation to testify truthfully and the desire to avoid retaliation and keep their jobs,” wrote Justice Sonia Sotomayor. The decision clarified previous rulings in which the court has said public employees have free-speech rights when they are acting as citizens, not when they are testifying to what they learned in their jobs or are required to speak about because of their specific duties.

Obama to Sign Order Barring U.S. Contractors from Job Bias Based on Sexual Orientation

Washington Post – Zachary Goldfarb and Juliet Eilperin | Published: 6/17/2014

President Barack Obama plans to sign an executive order barring federal contractors from hiring or firing employees based on their sexual orientation or gender identity. Obama is not expected to sign the order for weeks, as the White House finalizes details, including possible exemptions for religious nonprofit organizations. Administration officials said the president decided to act unilaterally in the absence of momentum for legislation with broader protections.

Soft Money’s Squishy Political Influence

New York Times – Derek Willis | Published: 6/18/2014

A report by Daniel Tokaji and Renata Strause of Ohio State University surveys the state of campaign finance and finds the relationship between candidates and like-minded independent groups is characterized by subtle cooperation, not outright coordination. For campaigns targeted by super PACs and other outside groups, the feeling is often one of helplessness. “It was like a giant poker game and I wasn’t even sitting at the table,” said a Senate campaign manager quoted in the report.

From the States and Municipalities:

Arizona – School Superintendent Huppenthal Acknowledges Anonymous Blog Posts

Arizona Republic – Cathryn Creno | Published: 6/19/2014

Arizona Superintendent of Public Instruction John Huppenthal said he is the author behind several anonymous blog posts that referred to welfare recipients as “lazy pigs” and Planned Parenthood as the cause of abortions among African-Americans. The comments date back to 2011 and were posted on political blogs. Huppenthal said he wrote them under different pseudonyms so he could have a more open dialogue without his position influencing the debate. Some experts say it is an ethical problem when elected officials do not state their opinions publicly.

Georgia – Ga. Settles with 3 Ex-Ethics Commission Employees

Washington Times – Christina Cassidy (Associated Press) | Published: 6/13/2014

The state has settled whistle-blower complaints by three former Georgia ethics commission employees for a total of $1.8 million. The settlements follow a jury verdict that awarded more than $1 million to a fourth employee, former commission Executive Secretary Stacey Kalberman. The state will pay $1 million to the panel’s former deputy, Sherry Streicker, $410,000 to former IT specialist John Hair, and $477,500 to former staff attorney Elisabeth Murray-Obertein.

Illinois – Billionaire Ken Griffin Gives Rauner Record-Breaking $2.5 Million

Chicago Sun-Times – Sandra Guy and Art Golab | Published: 6/13/2014

Billionaire hedge-fund founder Ken Griffin’s $2.5 million donation to the campaign of Republican Bruce Rauner has been termed the largest single donation in an Illinois governor’s race in the post-Watergate era. The limit on individual contributions is usually $5,300 in Illinois. But the law allows those caps to be lifted when contributions or loans from a candidate or candidate’s family surpass $250,000. Rauner gave $500,000 to his own campaign in November.

Massachusetts – Bill Would Increase PAC Disclosure

Boston Globe – Frank Phillips | Published: 6/18/2014

The Massachusetts Legislature is expected to pass a bill this summer that would increase disclosure requirements for super PACs. The bill would also double the amount of money individuals can give to state candidates from $500 to $1,000 a year, the first change to those limits in 20 years. The disclosure crackdown, also aimed at nonprofit advocacy groups that fund television ads, would go into effect immediately. The new individual donation limits would not take effect until next year.

Ohio – Lawmaker Might Face Charges over Gifts

Columbus Dispatch – Randy Ludlow | Published: 6/14/2014

Ohio Rep. Dale Mallory could face criminal charges for failing to disclose that lobbyist John Rabenold treated him to two meals and a Cincinnati Bengals game. Franklin County Prosecutor Ron O’Brien said Rabenold agreed to work with the FBI and Legislative Inspector General Tony Bledsoe in ongoing investigations into lawmakers who did not report gifts or accepted illegal gifts. The Joint Legislative Ethics Committee is expected to review the case and decide whether to make a referral to O’Brien for potential charges.

Ohio – U.S. Supreme Court Will Allow Constitutional Challenge of Ohio Law That Bars Campaign Lies

Cleveland Plain Dealer – Sabrina Eaton | Published: 6/16/2014

The U.S. Supreme Court allowed a challenge to an Ohio law banning lies in political campaigns to move forward. The court ruled two advocacy groups could challenge the state law that makes it a crime to make knowingly or recklessly false statements about political candidates that are intended to help elect or defeat them. Lower courts had dismissed the case, saying the organizations seeking to challenge it had not faced imminent harm sufficient to give them standing to sue. Justice Clarence Thomas, writing for the court, said the groups “have alleged a credible threat of enforcement” of the law and so were not barred from pursuing their challenge to it.

Pennsylvania – Improvements Seen in Phila. Lobbying Web Site

Philadelphia Inquirer – Alisha Green (Sunlight Foundation) | Published: 6/12/2014

The story of Philadelphia’s lobbying website highlights some of the problems that governments face with sharing this crucial data. Providing the information with enough detail and in a format that is easy to analyze and reuse is something few local jurisdictions have been able to accomplish so far. Philadelphia knew what it needed to do to improve lobbying transparency, but finding a way to implement those changes was the problem, according to an analysis by the Sunlight Foundation.

South Carolina – An Ethical Mess in South Carolina

The Center for Public Integrity – Corey Hutchins | Published: 6/17/2014

An ethics scandal involving the House speaker and difficulty in passing reform legislation are raising concerns about South Carolina’s legislatively dominated government structure, the efficacy of self-policing lawmakers, and the integrity of the state’s institutions. South Carolina earned an ‘F’ from the State Integrity Investigation, which graded states on their transparency, accountability, and risk for corruption. But despite calls for substantive reform from media, public interest groups, and the governor, the status quo remains.

Washington – Election Fallout: Judge says AG’s lawsuit against Grocery Manufacturers can move ahead

The Olympian – Brad Shannon | Published: 6/13/2014

A Thurston County judge rejected efforts by the Grocery Manufacturers Association to squelch a lawsuit in which Washington Attorney General Bob Ferguson accuses the trade association of laundering millions of dollars in last fall’s campaign. Ferguson has accused group of setting up a special fund to disguise the source of money spent to defeat Washington’s Initiative 522. But the judge scrap the state’s requirement that political committees collect at least $10 from 10 different registered voters in state before spending in a Washington campaign.

Washington – Legislative Ethics Board Weighs Limit on Free Meals from Lobbyists

The Olympian – Brad Shannon | Published: 6/17/2014

How often is “infrequent” when it comes to state lawmakers accepting free meals from lobbyists? Washington’s Legislative Ethics Board spent nearly two hours recently taking testimony on the issue and then grappling with the answer. So far, the board has considered several proposals, from as few as three meals annually to as many as 52 per year. It is currently taking comment from the public, lobbyists, and lawmakers before settling on a limit.

Wisconsin – Prosecutors Accuse Scott Walker of Running ‘Criminal Scheme’

Wisconsin State Journal – Mary Spicuzza | Published: 6/19/2014

Newly released documents show prosecutors allege Wisconsin Gov. Scott Walker was at the center of a nationwide “criminal scheme” to illegally coordinate with outside conservative groups. Prosecutors say Walker, his chief of staff, and others who worked for him were discussing illegal coordination with a number of national organizations and prominent figures, including Republican strategist Karl Rove, to fend off recalls targeting the governor and GOP state senators in 2011 and 2012.
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Lawmakers adjourned sine die without passing the ethics reform bill on Thursday, June 19, 2014.

House Bill 3945 was blocked from a vote by Sen. Lee Bright and Sen. Tom Davis. On Wednesday, Lt. Gov. Glenn McConnell formally resigned to become president of the College of Charleston.

Senators then selected Sen. Yancey McGill to be the new lieutenant governor and Sen. Hugh Leatherman to be the new President Pro Tem.

Photo of the South Carolina State House by Florencebballer on Wikimedia Commons.

The Ohio Joint Legislative Ethics Committee recently issued an advisory opinion clarifying certain gift reporting requirements for members, candidates, and employees of the General Assembly. The opinion also applies to reports filed by any legislative agent providing a gift to a reportable person.

Advisory Opinion 2014-003 speaks to the value of a complimentary ticket to a charitable fundraiser where the source of the ticket is a third party. When provided by a third party, a complimentary ticket to a non-political fundraiser is a gift, the value of which is the portion of the ticket price that is not tax-deductible.

Furthermore, such portion accrues toward any applicable gift limit. Conversely, a ticket to a charitable fundraiser where the source is the entity holding the event is not considered a gift.

Lobbying

“Under Contract” in The Hill.

“MPAA’s Michael O’Leary steps down – Big 12 hires a lobbying firm” by Byron Tau in Politico.

Missouri: “Lobbyists’ gifts to Missouri lawmakers exceed $500,000” by Angela Mueller in the St. Louis Business Journal.

Campaign Finance

“BitPay, CoinVox Team Up to Allow Politicians to Accept Bitcoin” by Eric Calouro in NewsBTC.

Delaware: “Campaign finance reform bills languish in legislature” by Jonathan Starkey in The News Journal.

Massachusetts: “Bill would increase PAC disclosures” by Frank Phillips in the Boston Globe.

New York: “Blame Game After Push to Revamp Campaign Financing Ends” by Mike Vilensky in The Wall Street Journal.

North Carolina: “N.C. election laws ‘stuck in pre-computer age’” by Jim Morrill in the Charlotte Observer.

Vermont: “Advocacy group turns sights to money in politics” by Neal P. Goswami in the Rutland Herald.

Ethics

“Prosecutor asks court: Reinstate DeLay convictions” by Juan A. Lozano (Associated Press) in the Houston Chronicle.

“Grand Jury Probes Capitol Knowledge & Stock Trading” by Kent Cooper in Roll Call.

Hawaii: “Ethics Commission Tells Lawmakers How They Should Spend Allowances” by Nathan Eagle in the Honolulu Civil Beat.

Elections

New York: “This is what happens when a campaign finance scholar runs for governor” by Max Ehrenfreund in The Washington Post.

Wisconsin: “Jon Erpenbach drops appeal in email open records case” in the Journal Sentinel.

State Legislatures

South Carolina: “SC House OKs $12,000 pay raise for lawmakers, overriding Gov. Haley’s veto” by Cassie Cope in The State.

Lobbying

“Lobbying World” in The Hill.

Florida: “Dade Medical College owner charged with improper lobbying” by Mike Vasquez in the Miami Herald.

Mississippi: “Washington Lobbyists Pour Money Into Mississippi Senate Race To Fend Off Tea Party” by Paul Blumenthal in The Huffington Post.

Campaign Finance

“Soft Money’s Squishy Political Influence” by Derek Willis in The New York Times.

“Campaign-Finance Reform Has to Be Cross-Partisan” by Lawrence Lessig in The Atlantic.

Vermont: “Canvassers to target money in politics” by Terri Hallenbeck in the Burlington Free Press.

Ethics

Arizona: “Clean elections director seeks full probe of Arizona AG Tom Horne over election law complaint” by Bob Christie (Associated Press) in The Republic.

Georgia: “Advocates want ethics chief out” by Erica Techo in The Augusta Chronicle.

Government Tech and Social Media

“Democratic Strategist Chris Talbot Explains the Do’s and Don’ts of Digital Campaigns” by Tess VandenDolder in InTheCapitol.

“FBI discovers Twitter-speak, starts a dictionary” by Ian Sherr in C|Net.

Section 42.52.420 of the Revised Code of Washington allows public officials to accept gifts in the form of food and beverage on infrequent occasions. In recent months, “infrequent occasions” has come under scrutiny after a widely-read report showed the state’s 50 most active lobbyists treated legislators to meals totaling more than $65,000 over a four-month period.

After the Legislature failed to pass any pertinent legislation before its adjournment on March 13, 2014, the Legislative Ethics Board took up the issue. The board held a meeting on June 17, 2014, to review proposals received from the public related to how to define infrequent occasions.

All of the proposals considered by the board would require legislators to file a report upon receiving a free meal. Stricter proposals set the dollar amount threshold for reporting the meal at $5 and the amount of free meals per year at three to five. Others set the threshold at $25 and allow 52 free meals per year. One especially ambitious proposal would require a reduction in a legislator’s per diem allowance for every free meal he or she accepts.

The board will continue to take public comment on the issue and will reconvene on August 19, 2014, to further consider public proposals.

Lobbying

“Bottom Line” in The Hill.

Campaign Finance

California: “Senate approves campaign fundraising blackout during budget negotiations and end of session” by The Associated Press in the Daily Journal.

Ethics

“Watchdog urges bribery probe of congressman” by Mario Trujillo in The Hill.

New Mexico: “NM governor’s ex-aide pleads guilty to hacking charges” by Julian Hattem in The Hill.

Ohio: “Ohio Rep. Dale Mallory Named In Ethics Probe” by The Associated Press on WBNS TV News.

Rhode Island: “House panel passes revised ethics bill” by The Associated Press in the San Francisco Chronicle.

Elections

“Supreme Court: Groups Can Sue over Campaign Lies” by Julie Rovner in Governing.

The Colorado Supreme Court issued its decision today in Gessler v. Colorado Common Cause, upholding a lower court’s decision ruling Secretary of State Scott Gessler did not have the authority to raise campaign finance limits for political issue committees. In 2002, voters passed a constitutional amendment creating a $200 contribution and expenditure threshold for issue committee status. The provision required both retrospective and prospective contribution and expenditure reporting once issue committee status was achieved.

Gessler later promulgated Secretary of State Rule 4.1 to increase the threshold to $5,000 and eliminate retrospective reporting requirements. Because the secretary of state does not have the authority to promulgate rules in conflict with other provisions of law, the Court affirmed the appeals court judgment and set aside Rule 4.1.

Ohio Reps. Nick Celebrezze and Ronald Gerberry announced plans last week to introduce legislation creating a campaign contribution blackout for the attorney general’s office. New legislation would prohibit contributions to the attorney general and to any party-endorsed candidates for the office while the office is reviewing bids on contract work.

Celebrezze believes a blackout period will help eliminate the appearance of impropriety. Attorney General Mike DeWine, however, claims enforcement of the blackout periods makes the process inherently more political. Moreover, he said contributions have not influenced his decision to award contract work.

Q. To streamline LDA tracking and reporting, our company includes 100 percent of our in-house lobbyists’ compensation as lobbying on our quarterly report.  Is this a reasonable approach?

A. The LDA does not contain any special tracking requirements for reporting expenditures.  Registrants employing in-house lobbyists are required to provide a “good faith estimate of the total expenses” of their lobbying activities.  With the “good faith” standard as the back drop, an organization should determine whether including 100 percent of their lobbyists’ compensation meets that standard.  Aside from the tax implications of including 100percent of compensation, typically, there is some time that is spent during the course of a quarter that is not defined as lobbying and varies from month to month depending on what issues are being addressed.  Therefore, providing a good faith estimate, in most cases, will require a registrant to implement some sort of tracking process to meet the standard.  In the event of an audit, the ability to demonstrate reasonable efforts to track and capture lobbying activity, and only lobbying activity, is an additional benefit.

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