Treasurer Mark J. Saladino announced his office will no longer do business with securities brokers making political contributions to school bond campaigns. The pay-to-play policy is an attempt to prevent campaign donations from influencing the hiring of underwriters by school districts. The policy is also expected to increase competition between dealers and save taxpayer dollars.

Under the new policy, underwriters must not donate to school bond measures if they want to qualify for the treasurer’s list of investment banks and securities dealers eligible to sell county bonds. The restriction applies to monetary donations, non-monetary contributions, and pre-election services.

In statewide surveys, virtually every securities broker hired by a school district contributed to the district’s bond campaign and was retained without competitive bidding. A recent study focusing on California school bond issues found post-election fees paid to underwriters making contributions were on average $27,576 more than those paid to brokers not contributing.

Lobbying

“100 People to Watch This Fall” in The Hill.

“Legislators head to Chicago for ALEC retreat” by Elizabeth Crisp in the St. Louis Post-Dispatch.

Campaign Finance

New York: “Moreland panel issues its first subpoenas” by Jimmy Vielkind in the Albany Times Union.

Ethics

Public Corruption Convictions: State Totals, 2001-2010 in Governing.

New York: “Bruno trial is a go” by Brendan J. Lyons in the Albany Times Union.

New York: “Court Rules Bruno May Face Fraud Charges” by The Associated Press in The New York Times.

Virginia: “Support lacking for Cuccinelli’s quick ethics reform” by Julian Walker in The Virginian-Pilot.

Virginia: “Virginia Lt. Gov. Bolling calls for gift and ethics reform” by Rosalind S. Helderman in The Washington Post.

From the State Legislatures

Kansas: “Brownback signs resolution for special session” by Tim Carpenter in the Topeka Capital-Journal.

NCSL 2013 Legislative Summit Online Resources

Government Tech and Social Media

“Analysis: How Twitter Is Revolutionizing Washington Relationships” by Matthew Cooper in NextGov.

Massachusetts: “MA Democratic Primary Candidates To Participate In Crowdsourced Online Debate” by Sarah Lai Stirland in TechPresident.

New York: “Elections to Be Easier for Voters With an App” by Nick Corasaniti in The New York Times.

Redistricting

Congressional District Compactness, Gerrymandering By State in Governing.

Yesterday, the Texas Legislature adjourned its third special session sine die.

Governor Rick Perry had called the special session to consider legislation relating to the funding of transportation infrastructure projects. According to KVIA.com, the Legislature passed a constitutional amendment boosting transportation spending with money coming from oil and gas revenues diverted away from the state’s Rainy Day Fund. The amendment will be voted on next year by the state’s voters.

Lobbying

“K Street powerhouse lobbies for green energy tax bill” by Ben Geman in The Hill.

Campaign Finance

New York: “Reform advocate spends big money” by Jimmy Vielkind in the Times Union.

New York: “Citing Irregularities, City Board Rejects Public Money for Liu’s Campaign” by David W. Chen in The New York Times.

Ethics

“FEC commissioner: New emails could tie agency to IRS targeting” by Blake Neff in The Hill.

Missouri: “Creator of Missouri Ethics Commission nominated for federal bench” by Jo Mannies in the St. Louis Beacon.

New Hampshire: “Ethics committee: Special E-ZPasses don’t violate gift limits for N.H. lawmakers” by Ben Leubsdorf in the Concord Monitor.

New Jersey: “Appeals court affirms dismissal of ethics complaint against assemblyman” by Matt Friedman in the Star-Ledger.

Utah: “Panel investigating Attorney General John Swallow to hold first meeting” by John Swallow in the Deseret News.

Virginia: “Cuccinelli pushes for special session on ethics rules” by Julian Walker in The Virginian-Pilot.

Redistricting

California: “SoCal Rep. Lowenthal takes a big swing at redistricting with new bill” by Kitty Felde on KPCC News.

Lobbying

“August recess now high season for interests lobbying lawmakers” by Matea Gold in The Washington Post.

Massachusetts: “Mass. casino lobbying tapering off on Beacon Hill as firms train money on host communities” by Steve LeBlanc (Associated Press) in The Republic.

Oklahoma: “Freshman Oklahoma lawmaker top recipient of lobbyist attention” by Michael McNutt in The Oklahoman.

Wisconsin: “Lobbying spending by public unions drops sharply” by The Associated Press in the Miami Herald.

Campaign Finance

“Report: Dead donors gave $586K” by Tal Kopan in Politico.

Texas: “New Open-Source Tool Gives Texans Faster Access to Campaign Finance Data” by Miranda Neubauer in TechPresident.

Ethics

“Congressional Pressure on FEC Criticized” by Kent Cooper in Roll Call.

Maryland: “Ethics complaint questions Vallario’s dual roles as legislator and lawyer” by John Wagner in The Washington Post.

Oklahoma: “Outdated software plagues Oklahoma Ethics Commission” by Michael McNutt in The Oklahoman.

Pay-to-Play

New Jersey: “Bill would close loophole in N.J. pay-to-play law” by Claudia Vargas in the Philadelphia Inquirer.

Government Tech and Social Media

“Georgia Saving Millions with Open Source Technology” by Brian Heaton in Government Technology.

From the State Legislatures

“The rise of one-party rule in the states” by Craig Gilbert in the Journal Sentinel.

California: “Lawmakers make final push” by Melody Gutierrez in The Sacramento Bee.

California: “Crunch time: Deals loom as clock ticks” by Greg Lucas in Capitol Weekly.

California: “Assembly returns without supermajority” by Christopher Arns in the Sacramento Business Journal.

The first charge and conviction for violating the Lobbying Act resulted in a $7,500 fine for a former federal staffer. Andrew Skaling worked for Tory office holders during the 2004 federal election campaign, while also being retained by the Canadian Network of Respiratory Care to arrange meetings with public officers. Skaling failed to register as a lobbyist, but assured the director of the charity he had.

While there was no evidence Skaling actually met with federal officials to lobby for the charity, the Lobbying Act requires a lobbyist to register within 10 days of being retained. The maximum penalty for failing to register under the Lobbying Act is $50,000 or six months in jail.

The mission of State and Federal Communications is to make sure your organization can say, “I Comply.”

We are the leading authority and exclusive information source on legislation and regulations surrounding campaign finance
and political contributions; state, federal, and municipal lobbying; and procurement lobbying.

Visit us at Stateandfed.com and be sure to try our free online Executive Source Guides Demo! You can also sign up for our free Compliance Now e-newsletter.

Contact us to learn how conveniently our services will allow you to say “I Comply” for your compliance activities. If you have any questions, you can reach us at 330-761-9960, or info@stateandfed.com.

August 2-5, 2013   National Governors Association Annual Meeting, Milwaukee, Wisconsin

August 8, 2013   Public Relations Society of America, Tangiers in Akron, Ohio

August 12-15, 2013   NCSL Legislative Summit Booth 921, Atlanta, Georgia

September 19-22, 2013   CSG National Conference, Kansas City, Missouri

September 25-27, 2013   Public Affairs Council State and Local Government Relations Conference, Washington, D.C.

Q. I will be attending the NCSL conference this summer.  Do regular gift limits on expenditures for public officials apply during this event?

A. The answer will vary depending upon whether you are paying for a private event or sponsoring a conference-affiliated event.  Taking a legislator to dinner, paying for cab fare or other transportation, or giving him or her a ticket to a ballgame are not considered part of the official conference agenda and normal gift limits will apply.  Also, for private events, the answer will depend upon whether you or your company are registered as a lobbyist or lobbyist employer.  In most instances, states have more stringent gift laws applicable to lobbyists and lobbyist principals.

Many states have gift limit exceptions specifically carved out for expenditures at national conferences to which all members of the legislature are invited. Further, State Night events at NCSL are considered part of the conference agenda; therefore, when national conference gift exceptions exist, they will apply.

Although a State Night sponsorship may be permissible, it is important to determine if and when the expenditure must be disclosed.  Know the reporting requirements before the event, because an attendee list may be required. The reporting implications range from simple aggregate disclosure to detailed reporting where the name of every legislator attending must be listed.

You can directly submit questions for this feature, and we will select those most appropriate and answer them here. Send your questions to: marketing@stateandfed.com.

(We are always available to answer questions from clients that are specific to your needs, and we encourage you to continue to call or e-mail us with questions about your particular company or organization. As always, we will confidentially and directly provide answers or information you need.) Our replies to your questions are not legal advice. Instead, these replies represent our analysis of laws, rules, and regulations.

At any given time, more than 1,000 legislative bills, which can affect how you do business as a government affairs professional, are being discussed in federal, state, and local jurisdictions. These bills are summarized in the State and Federal Communications digital encyclopedias for lobbying laws, political contributions, and procurement lobbying, and can be found in the client portion of the State and Federal Communications’ website.

Summaries of major bills are also included in monthly e-mail updates sent to all clients. The chart below shows the number of bills we are tracking in regards to lobbying laws, political contributions, and procurement lobbying.

National:

Heiresses Apparent: Daughters take their turn for the political dynasty

Washington Post – Emily Heil | Published: 7/26/2013

Perhaps more than any previous year, the 2014 midterm campaigns feature a wave of daughters eager to embrace their fathers’ political legacies while forging their own political futures. And at a time when the 2016 presidential field appears likely to include both the son of a prominent politician (Rand Paul) and the wife of a president (Hillary Clinton), it is no surprise that daughters are forming a political class of their own.

State Republican Parties Mired in Dysfunction

The Associated Press – Steve Peoples | Published: 7/25/2013

Several state Republican leaders have been forced out or resigned in recent months, and many state parties face financial problems and skeptical national leaders. The conflicts highlight the tug of war over the GOP’s future as national leaders work to improve the party’s brand. At the same time, the dysfunction raises questions about the GOP’s ability to coordinate political activities in key battleground states ahead of the midterm elections.

Federal:

Next Citizens United? McCutcheon Supreme Court Case Targets Campaign Contribution Limits

Huffington Post – Paul Blumenthal | Published: 7/31/2013

Electrical engineer and budding political donor Shaun McCutcheon, now joined by the Republican National Committee, is bringing the biggest campaign finance case before the U.S. Supreme Court since the controversial 2010 Citizens United decision. If the justices rule in their next term for McCutcheon, it would mark the first time the court had found a federal contribution limit unconstitutional and would open the door for even more money to flood the political system.

Women Lobbyists May Be Worth More

National Journal – Elahe Izadi | Published: 7/30/2013

While men outnumber women on K Street, an analysis by LegisStorm shows individual lobbying contracts held by women are worth more on average than those held by men. The study, one of the first of its kind, offers a window on Washington’s roughly $3 billion lobbying industry and how it is evolving.

From the States and Municipalities:

Alabama – Corporations Can Make Unlimited Campaign Contributions

Gadsden Times – Philip Rawls (Associated Press) | Published: 8/1/2013

Companies can now give unlimited amounts to candidates in Alabama. The end of the $500 limit on August 1 means Alabama will become the fifth state with no cap on campaign donations. Lobbyist Bob Geddie said some companies may contribute directly to candidates now that the limit is off, but most will keep donating to PACs. He said if their corporate name ends up on a candidate’s campaign finance report, they know others will call for donations.

Arizona – Supporters Ask Judge to Block Higher Campaign Limits

Arizona Daily Sun – Howard Fischer (Capitol News Services) | Published: 7/31/2013

The Arizona Citizens Clean Elections Commission asked Maricopa County Superior Court to block an increase in state campaign contribution limits. The state Supreme Court declined to consider the commission’s special-action lawsuit in the matter. The plaintiffs were allowed to start over by filing the lawsuit anew with a lower court.

California – Cupid’s Work Gets Complicated as California Lawmaker Dates Lobbyist

Sacramento Bee – Laurel Rosenhall | Published: 7/31/2013

State Assemblyperson Brian Maienschein is dating Carolyn Ginno, a lobbyist for the California Medical Association. While the romance does not violate any rules, it has raised concerns among some good government groups. Watchdogs said Maienschein should step down from committees that routinely vote on bills the association lobbies, such as the health and business panels.

Colorado – Chieftain Newsroom Execs Sign Giron Recall Petitions, Blasted for ‘Ethics Conflict’

Huffington Post – John Tomasic (Colorado Independent) | Published: 7/30/2013

A local activist group reported Pueblo Chieftain General Manager Ray Stafford and at least two other newsroom executives signed petitions to have Colorado Sen. Angela Giron recalled over her support for gun-control laws. The group said the signatures amount to a breach of professional ethics. Stafford also wrote Giron an e-mail that many viewed as a threat.

Illinois – Scandal Puts Focus on ‘Toothless’ Ill. Ethics Law

Chicago Tribune – Kerry Lester (Associated Press) | Published: 7/30/2013

The Legislative Ethics Commission has agreed to look into whether Illinois House Speaker Michael Madigan and two of his fellow Democrats tried to use clout to interfere with personnel matters at Metra, the Chicago-area transit agency. But the committee is working under a law that critics say is too vague on what constitutes a conflict-of-interest and lacks sufficient enforcement powers.

Indiana – Tony Bennett, Former Indiana School Superintendent, Changed Top GOP Donor’s School’s Grade

Huffington Post – Tony LoBianco (Associated Press) | Published: 7/29/2013

Tony Bennett, the then-head of the Indiana department of Education, pressed for changes to the state’s school grading formula to help a campaign donor’s charter school. According to e-mails obtained by The Associated Press, Bennett demanded the changes when it appeared a charter school backed by influential Republican donor Christel DeHaan was going to earn a “C” in the state’s grading system.

Missouri – In Missouri, Campaign Donors Fund Phones, Sports Tickets, Golf Balls

St. Louis Post-Dispatch – Elizabeth Crisp | Published: 7/31/2013

A St. Louis Post-Dispatch analysis shows lawmakers and statewide officials often turn to their campaign funds to pay for a wide range of personal expenses that, they argue, are associated with their official or campaign duties. Meals, travel, and fundraising events – including costs associated with popular golf tournaments – were among the major expenses for candidates and elected officials.

New York – Exemption Rules under Review

Albany Times Union – Jimmy Vielkind | Published: 7/30/2013

The Joint Commission on Public Ethics is putting off a decision on applications from lobbying groups hoping to shield their donors from public view as it debates tweaks to its regulations. Emergency rules that will become permanent in August allow the commission to exempt donors that face “harm, threats, harassment, or reprisals” if it became known they were contributing to a cause. Commissioners agreed to have a public discussion on amending the exemption, possibly in early September.

North Carolina – McCrory Not Up On Voter Law He Signed

Charlotte Post – Michael Biesecker (Associated Press) | Published: 8/1/2013

North Carolina Gov. Pat McCrory signed into law a bill that makes extensive changes to the state’s election law, even though he admitted he was not familiar with key provisions on preventing voter fraud. At a press conference, the governor did single out the section of the bill that prohibits lobbyists from passing campaign donations directly to lawmakers.

South Carolina – State House for Sale: SC’s unregistered lobbyists profit in ‘gray area’

The State – Jamie Self | Published: 7/27/2013

Many companies and groups in South Carolina seek state money each year. To press their cases, they employ hundreds of lobbyists. But not everyone trying to influence lawmakers registers with the state as a lobbyist as required by the ethics law.

Tennessee – Ethics Panel Stalls on Tom Ingram Lobbying Hearing; Dismissal Vote Falls Short

Knoxville News Sentinel – Tom Humphrey | Published: 8/1/2013

A vote to scuttle penalties against prominent political operative Tom Ingram fell short in the Tennessee Ethics Commission. The panel voted three-to-one to drop the cases against Ingram, his colleague Marcille Durham, and client Hillsborough Resources for failing to register to lobby for three years on behalf of a coal company seeking to mine on public lands. That is one vote short of the minimum needed to pass, so members agreed to hear the cases again at a September meeting.

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.

The Legislative Ethics Commission has renewed its 2012 recommendations for several changes to the code of legislative ethics.

The recommended changes include:

• requiring employers of lobbyists to report the cost of advertising supporting or opposing legislation that appears during a session of the general assembly, if the cost is paid by an employer of lobbyists or a person affiliated with an employer;

• prohibiting employers of lobbyists and PACs from making campaign contributions to legislative candidates or legislators during a regular session of the general assembly, and prohibiting lobbyists from directly soliciting contributions for an election campaign of a legislator or legislative candidate;

• repeal the provision allowing each lobbyist and employer to spend up to $100 annually on food and beverages for each legislator and his or her immediate family, and prohibit lobbyists and employers from paying for out-of-state travel, food, or lodging expenses for legislators or candidates; and

• limiting the interaction between lobbyists and candidates who have filed to run for election to the general assembly, who are currently not subject to the $100 limit on food and beverage or prohibition on receiving anything of value from a lobbyist or employer.

Hawaii and Iowa will be seeing some changes in their campaign finance laws as a result of passed bills and court decisions.

In Iowa, the 8th U.S. Circuit Court of Appeals upheld the state’s law requiring groups making independent expenditures to disclose information about their spending, but struck down the part of the law requiring those same groups to file supplemental reports. Under the old law, if a group spent more than $750 on independent expenditures it would be required to file a report within 48 hours, and if the group spent more than $1,000 in expenditures it would be required to file a supplemental report on the 19th of January, May, July, and October. However, in Iowa Right to Life Committee, Inc. v. Tooker, the court held the supplemental reports to be “additional, redundant, and more burdensome.” Therefore, groups making independent expenditures are no longer required to file supplemental reports.

In Hawaii, Governor Neil Abercrombie signed two bills into law. Senate Bill 31 changes the way noncandidate committees, corporations, and other associations active in elections disclose their political spending. In the past, those groups were required to file supplemental reports on January 31 and July 31 only in years following an election. Under the new law, which took effect immediately upon Abercrombie’s signature, the January 31 supplemental report must be filed every year. The bill also requires those groups, when filing the reports, to make a distinction between contributions made and contributions received.

Abercrombie also signed House Bill 1147 into law. This bill, which takes effect November 5, 2014, requires noncandidate committees making only independent expenditures to include, in a prominent location, the names of the top three contributors making the highest aggregate contributions to the noncandidate committee for the purpose of the advertisement. This requirement only applies to advertisements which are broadcasted, televised, circulated, or published, and are of a duration so as not to create a hardship to the committee. The bill also requires a noncandidate committee making an independent expenditure in the last two weeks before an election exceeding $500 to file a late expenditure report.