The Ethics Commission has prepared draft amendments to the Election Campaign Control Ordinance (ECCO). The proposed ECCO amendments include a provision to classify a committee’s otherwise independent payment as a “contribution” if the payment is for an advertisement duplicating materials found in a candidate’s advertisement or on the candidate’s website. Such payments would be subject to both contribution limits and source prohibitions.

The commission has invited public comment at the next meeting on May 8, 2014. The draft amendments are available here.

Photo of the San Diego skyline courtesy of Tomcio77 on Wikimedia Commons.

Gov. Nikki Haley has rejected a proposed compromise on ethics oversight by the House ethics reform panel. The panel unanimously advanced a proposal in House Bill 3945 to create an independent investigative commission.

The commission would consist of 12 members selected by all three branches of state government and have the power to investigate allegations of violations by officials and candidates. Power to punish violations would remain with the existing House and Senate ethics committees. The governor has also rejected the panel’s previous attempt to create an omnibus commission with the power to investigate, judge, and punish.

The panel is attempting to find compromise between the House version containing a combined ethics committee and the Senate version maintaining separate ethics committees. The investigative committee proposal will go before the House Judiciary Committee on Tuesday, May 6, 2014.

Q. My company is a registered lobbyist employer in California.   I do not currently meet the threshold for lobbyist registration, however, I do engage in some lobbying activity.  Am I required to disclose this activity on the company’s report?

A. In California, lobbyist employers are required to track and disclose compensation and expenditures for non-lobbyist employees (NLEs) on quarterly disclosure reports. If you meet the NLE threshold for reporting, you are required to disclose your pro-rata share of compensation and related expenditures, even if you do not meet the registration threshold.  Specifically, you qualify as an NLE if you spend more than 10 percent of your compensated time in any calendar month in connection with lobbying activities.  However, this does not include compensation paid to an employee whose duties are solely clerical, manual, or are limited to the compilation of data or statistics.

If you qualify as an NLE, you must track your compensation and reimbursed expenditures dedicated to state lobbying activities.  This combined figure is included on the employer report (Form 635) in Part D, Other Payments to Influence Legislative or Administrative Action.  When estimating your time, you will need to include all time spent in connection with lobbying activities, including direct communications with public officials in the presence of your company’s or trade association’s contract lobbyist.  Although there is an exception in the Fair Political Practices Commission regulations allowing employees to not count this type of direct communication towards the registration threshold, you must nevertheless track and disclose this time on your company’s employer report if you exceed the NLE reporting threshold.   You will also need to include grassroots activity, research, and preparation time.

Be mindful of the gap between the NLE reporting threshold and the lobbyist registration threshold. If your level of activity exceeds the lobbyist registration threshold, you are required to register within 10 days.  The registration threshold for in-house employees is defined as spending one-third or more of your compensated time in any calendar month engaging in direct communications with a qualifying official for the purpose of influencing legislative or administrative action.

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

For the third year, State and Federal Communications has joined the American Heart Association in its Go Red for Women program. This year I am a member of the Circle of Red Society, and John Chames is a member of the Red Tie Society.

This is still an important message.

TODAY, heart disease is still the No. 1 killer of women, causing one in three deaths each year. But it can be prevented. TODAY, Make It Your Mission to learn how to stop this killer, and then tell five women you love you want them to live. TODAY, you can help us stop heart disease in our lifetime. You have an opportunity to support this mission. Call your local American Heart Association and make a contribution. Here is how your donation can make a difference:

• $1,000 provides the newest CPR guidelines to more than 60 emergency care providers, teaching them the most effective skills for treating cardiac arrest.
• $500 allows us to distribute the innovative CPR Anytime to 10 women who can then train 2 to 3 friends or loved ones.
• $250 will teach 50 women in your community the connection between good food and good health by showing them heart-healthy ways to prepare food using the Recipes for the Heart cookbook.
• $100 can equip one hospital or health department with American Stroke Association resources to educate female patients, the public, and health professionals on stroke prevention and life after stroke.

TODAY, check out www.heart.org and learn more about heart health. TODAY is the day to make a difference.

Thank you,

Elizabeth Z. Bartz
President and CEO
@elizabethbartz

The Kansas Legislature adjourned in the early morning hours of May 3, making this the shortest legislative session in 40 years.

State lawmakers passed a budget and approved funding for courts and schools, but failed to address the state’s falling revenue due to deep tax cuts passed in 2012 and 2013.

Sharp declines in revenue are causing the state to quickly burn through its reserve funds, leaving some to wonder if the next Legislature will be able to fund critical state services.

The Florida Legislature adjourned its 2014 session on May 2, 2014 after passing a record $77.1 billion budget.

The final day of session also saw two immigration bills passed, including one allowing undocumented immigrants attending Florida high schools to qualify for in-state tuition rates at Florida universities.

Lobbying

“Fewer lobbyists are passing through the revolving door from K Street to Capitol Hill” by Holly Yeager in The Washington Post.

“Lobbying industry spending takes a small dip” by Allen Young in the Sacramento Business Journal.

“Tech lobbies join forces” by Julian Hattem in The Hill.

Kansas: “Lobbying in Kansas draws scrutiny from the FBI” by Dave Helling and Brad Cooper in The Kansas City Star.

New Jersey: “New Jersey’s 10 highest-paid lobbyists” in The Star-Ledger.

Campaign Finance

“Chamber of Commerce Spends Millions on Independent Expenditures” by Kent Cooper in Roll Call.

“Liberal donors eye new long-term investments in states and new voters to boost Democrats” by Matea Gold in The Washington Post.

Vermont: “Vermont Calls to Take Money out of Politics” by Steph Machado on myChamplainValley.com.

Wisconsin:  “Wisconsin Alderman Accepts Bitcoin Contributions For State Assembly Run, Runs Into Snag” by Eric Calouro in newsBTC.

Ethics

Missouri: “Missouri lawmakers struggle with ethics measures” by Jordan Shapiro (Associated Press) in the San Francisco Chronicle.

Rhode Island: “Sheehan: A Way to Close the Ethics Loophole” by James C. Sheehan in GoLocalProv.

Rhode Island: “Political Scene: R.I. pols got around, from Miami to Moscow” by Katherine Gregg and Randal Edgar in the Providence Journal.

West Virginia: “Ethics commission allows public employees to solicit Girl Scout cookie sales in workplace” by The Associated Press in the Daily Journal.

From the State Legislatures

Iowa: “Some sizzle, some fizzle in 2014 legislative session” by William Petroski and Jason Noble in The Des Moines Register.

Government Tech and Social Media

California: “California Lawmaker Crowdsources Constituents to Create a Bill of Their Own” by Melanie Mason in Governing.

The 2014 session of Iowa’s 85th General Assembly adjourned Friday, May 2, 2014.

While in session, legislators considered an array of legislation, including anti-bullying and the use of medical marijuana for epilepsy patients.

Legislators also agreed on the 2015 fiscal budget for the state.

The 2nd regular session of the 126th Maine State Legislature adjourned sine die May 2, 2014. The statutory adjournment date was April 16, 2014; however the Legislature spent an additional two weeks in session.

Legislators successfully overturned two vetoes by Gov. Paul LePage, one for a bill providing tax credits to primary care physicians who practice in rural areas, and another to preserve a funding bill for the fiscal year beginning in July 2014.

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

April 30-May 2, 2014  OSBA Annual Convention, Columbus, Ohio

May 8, 2014   WGR Spring Reception, Washington, D.C.

May 16, 2014   University of Akron Law Alumni Reunion, Akron, Ohio

May 20, 2014   WGR PACS, Politics, and Grassroots Conference, Washington, D.C.

May 27, 2014   National Press Club, Washington, D.C.

May 29-31, 2014   NCSL Executive Committee Meeting, Anchorage, Alaska

June 22-26, 2014   BIO International Convention, San Diego, California

The State and Federal Communications Research Department had the privilege of hosting Latoya Peterson, an extern from the University of Akron School of Law, this semester. We challenged her with a variety of projects, but most of her focus was on helping us identify and summarize legislation affecting the areas of lobbying laws, campaign finance, and procurement lobbying. The beginning of the year in particular has an especially large volume of bills and Latoya assisted the department’s research associates with the workload.

Latoya had worked in the Ohio General Assembly and already had a background in government affairs, so she had no problem picking up what kinds of bills we wanted to track. She was also able to quickly learn the fine details of working in our database and then she was off and running!

It was a pleasure to have Latoya work with us over the past few months. Hopefully we’ll be blessed with her positive energy again.

National:

States Are Now Targets of ‘Citizens United’

Politico – Byron Tau | Published: 5/1/2014

General Majority PAC, created last year by U.S. Sen. Harry Reid’s chief of staff, Susan McCue, has won legal challenges in New Jersey and Pennsylvania over the past year to enforce the Supreme Court ruling permitting unlimited corporate and union spending. The successful lawsuits essentially have created the equivalent of super PACs at the state level and are part of a larger transformation of election law in the past few years as the changes at the federal level eventually creep down into state election law.

Federal:

Corporations Join the Party

Politico – Anna Palmer and Tarini Parti | Published: 5/1/2014

While presidential inaugurations and party conventions are not what they used to be as fundraisers have struggled with getting corporate donors to act as sponsors, one weekend a year these fears fade away and companies open their checkbooks to join in the fun of the establishment celebrating the establishment: the White House Correspondents’ Dinner. Dozens of corporations are sponsoring cocktail receptions and late night soirees, along with an educational event or two, during the weekend of the dinner.

Women Take Power as Lobbyists

The Hill – Megan Wilson | Published: 4/29/2014

Whether they are managing the lobbying operations of Fortune 200 companies, running their own shops, or building up a roster of big-name clients at mega-firms, women are steadily moving into roles once considered part of Washington’s “old boys club.” While men still outnumber women on K Street by a significant margin, the environment has changed dramatically from just over a decade ago, when a prominent lobbyist felt she could not successfully open a firm without a man’s name on the masthead.

From the States and Municipalities:

Illinois – Ex-Ald. Mell Starts Lobbying Firm with Help of Daughter Patti Blagojevich

Chicago Tribune – Hal Dardick | Published: 4/28/2014

Former Chicago Ald. Dick Mell has started a new lobbying firm with the help of daughter Patti Blagojevich. Mell said the venture is something to keep him busy in retirement and also a way to financially help his daughter. Her husband, former Gov. Rod Blagojevich, is serving a 14-year sentence in federal prison for corruption. Mell retired before the implementation of a new revolving door policy that as of January 1 bars aldermen from lobbying the city for one year after their last day in office.

Indiana – Ethics Panel: Overhaul needed after Turner actions

The Post-Tribune; Associated Press –   | Published: 4/30/2014

A panel of lawmakers said Indiana Rep. Eric Turner did not violate House ethics rules when he fought legislation that would have cost his family’s nursing home business millions of dollars. But the Ethics Committee expressed concerns that Turner’s efforts to defeat a proposed nursing home moratorium did not achieve the “highest spirit of transparency” and vowed to tighten those rules. Documents show Turner had more than $4 million in profits on the line through his ownership stake in the company.

Kansas – Sources: FBI examines lobbying by Brownback

Topeka Capital-Journal – Tim Carpenter | Published: 4/27/2014

The FBI has been investigating influence peddling involving some of Kansas Gov. Sam Brownback’s top advisers. Of concern were behind-the-scenes financial arrangements related to the privatization of the state’s Medicaid program, which handed exclusive contracts to three for-profit insurance companies to provide services. The inquiry focuses on Parallel Strategies, a lobbying firm founded by David Kensinger, the governor’s former chief of staff. Kensinger quit two months before contracts were signed with the three companies, which reportedly hired a lobbyist who works with him.

Louisiana – Limit on Louisiana Lobbyists’ Spending Edges Up to $58 per Occasion, Starting in July

Columbus Republic; Associated Press –   | Published: 4/29/2014

Starting in July, the amount that can be spent by a Louisiana lobbyist per person for an occasion is increasing to $58. The limit applies to food, drink, and other refreshments purchased for public employees and elected officials. The amount has been steadily rising since the Legislature implemented a $50 spending cap and then allowed it to increase with the consumer price index.

Ohio – Indian Hill Payday-Lender Lobbyist Avoids Jail Time

Cincinnati Enquirer – Chrissie Thompson | Published: 5/1/2014

Lobbyist John Rabenold must pay $2,000 in fines for failing to report gifts of sports tickets and upscale dinners to Ohio lawmakers. He will spend up to three years on probation. Rabenold must also continue to cooperate with an investigation that could result in charges against lawmakers for accepting the gifts and failing to report them.

Pennsylvania – After the Latest Scandals, Pennsylvania Lawmakers Ponder a Gift Ban and Other Tougher Ethics Laws

Harrisburg Patriot News – Jeff Frantz | Published: 4/28/2014

The Senate State Government Committee heard testimony that Pennsylvania’s ethics laws regarding gifts are among the weakest in the country and must be strengthened. The Senate has approved a bill that would prohibit cash gifts, but Committee Chairperson Lloyd Smucker has advocated a wide ban on gifts and hospitality. John Schaaf, counsel for the Kentucky Legislative Ethics Commission, testified about his state, which called a special session after several lawmakers were charged with corruption by the FBI. Schaaf said Kentucky now has some of the toughest ethics measures in the country.

Texas – Nonprofit Groups Using Law to Anonymously Back Candidates

Houston Chronicle – David Saleh Rauff | Published: 4/27/2014

Dark money has been injected into a broad mix of state and local elections in Texas. With the state in the midst of a heated gubernatorial race attracting national attention and national donors, the stream of secret campaign cash from outside groups is expected to steadily increase. The Texas Ethics Commission has put up for public comment proposed rulemaking to address anonymous contributions, and some lawmakers, annoyed after being targeted by dark money, are working to revamp 501(c)(4) disclosure legislation vetoed by Gov. Rick Perry last session.

Vermont – Close to Adjournment, House Democrats Throw $500 Lobbyist Fundraiser

Seven Days – Paul Heinz | Published: 5/1/2014

With just days remaining in the legislative session, Vermont lawmakers and lobbyists took a break to attend a political fundraiser at the Capitol Plaza Hotel. Over the course of two hours, a reporter from the website Seven Days observed nearly two dozen lobbyists and a dozen Democratic lawmakers, mostly committee chairpersons and members of the House leadership team, entering the Ethan Allen room. “… In our business, you trade on knowledge and you trade on relationships,” said lobbyist Joe Choquette.

Wisconsin – John Doe Probe Raises Issue of Potential Conflicts with Justices

Milwaukee Journal Sentinel – Patrick Marley | Published: 4/28/2014

Some are questioning whether four of the state’s seven Supreme Court justices can hear one or more challenges to an ongoing probe into whether Wisconsin Club for Growth illegally coordinated with Gov. Scott Walker’s campaign. The group has spent about $1.8 million to help elect the four justices who make up the conservative bloc controlling the court. Wisconsin’s recusal rules for judges says campaign contributions and independent spending, absent other factors, are not enough to warrant getting out of cases.

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.

Hawaii Gov. Neil Abercrombie signed Senate Bill 2120 into law April 25. Immediately effective upon executive approval, the legislation corrects a mistaken reference to a section of the Hawaii Revised Code meant to exempt contributions from a candidate’s immediate family from general statutory contribution limits.

Contributions from immediate family are now limited in the aggregate to $50,000 in any election period, provided the aggregate amount of loans and contributions received from said family does not exceed $50,000 during an election period.