Gov. Sam Brownback has vetoed a bill increasing the spending threshold for lobbyist registration. Senate Bill 99 would have raised the expenditure threshold triggering lobbyist registration from $100 per calendar year to $500 per calendar year.

The increased threshold was recommended by the state ethics commission because the current threshold had not been increased in 25 years.

In vetoing the bill, Gov. Brownback stated he understood the bill’s purpose and intent but believed the current threshold better served the interest of government transparency.

The Ethics Commission fined Marc Chase $80,000 for funneling illegal contributions to the 2012 campaigns of San Diego County Dist. Atty. Bonnie Dumanis and ex-Mayor Bob Filner. Chase, the co-owner of a luxury car dealership in La Jolla, admitted he laundered money from Mexican businessman Jose Susumo Azano Matsura into the mayoral campaigns of Dumanis and Filner.

Azano was a major customer of Chase, who served as a “straw” donor to hide Azano’s name. Election law forbids contributions from foreign nationals.

Chase also pleaded guilty in federal court to eight misdemeanor counts of campaign funding violations. He could face eight years in prison when sentenced Nov. 13, 2014.

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

The State Board of Elections has issued a guidance memo following the U.S. Supreme Court’s ruling in McCutcheon v. Federal Election Commission. The board will no longer enforce a $10,000 aggregate limit on donors’ contributions to state candidates during a four-year election cycle.

The memo states personal contributions are unlimited, but still must not exceed $4,000 to any one candidate. The McCutcheon decision held such aggregate limits violate constitutional protections of free speech. Political action committees in Maryland had no previous aggregate limit and remain limited to $6,000 per candidate.

The guidance is effective immediately.

On April 10, Boston Mayor Martin J. Walsh announced the formation of a city Ethics Committee.

The committee will review all changes to the city’s Ethics Policy, implement a new Statement of Financial Interest for all city employees, create continuing education programs around ethics issues, and analyze existing practices and procedures.

In his press release, the Mayor said, “The citizens of Boston and those who interact with our government should be absolutely confident that their government is working for them, at the highest ethical standards.”

National:

States Look Harder at Rules on Gifts to Lawmakers

Philadelphia Inquirer – Amy Worden | Published: 4/6/2014

News that four state lawmakers from Philadelphia were caught on tape allegedly taking cash or gifts from a lobbyist has stoked new calls for reform. Pennsylvania is not alone. Organizations that monitor ethics laws nationwide say the last decade has brought tighter state laws involving gift-giving, lobbying, and conflict-of-interest, some driven by similar scandals.

Federal:

Big Donors Fear Shakedown after Decision

Politico – Anna Palmer and Tarini Parti | Published: 4/2/2014

The U.S. Supreme Court’s ruling that the limit on an individual’s overall campaign contributions infringed on First Amendment rights cleared the way for donors to give the maximum amount to as many candidates and political parties as they wish during a two-year election cycle. The decision means a common excuse for brushing off fundraising requests – that potential donors, many of them lobbyists,  have already “maxed out” their contributions under the cap – is now moot.

From the States and Municipalities:

Arizona – Ariz. Legislators Don’t Disclose Gifts, Resist Change

Arizona Republic – Mary Jo Pitzl | Published: 4/8/2014

Disclosure is not a comfortable topic at the Arizona Capitol, where four years ago the Fiesta Bowl scandal erupted over 28 current and former lawmakers accepting lavish trips and college-football game tickets. Since then, despite proposals to clarify disclosure rules, nothing has changed. State law requires elected officials to disclose gifts they received that were worth $500 or more. But that is not strictly followed, according to an Arizona Republic review of the annual reports. At least nine lawmakers did not initially report trips they took in 2013.

California – Suspended Senators Leave Millions of Constituents Short on Representation

Sacramento Bee – Jeremy White | Published: 4/6/2014

The legal troubles roiling Sacramento have left millions of constituents without the elected representatives they sent to the Capitol to advocate and vote for their interests. Three senators fighting criminal cases were suspended from office. When lawmakers are stripped of their most basic and potent tool for shaping policy – a vote on legislation – the constituents are also, in a sense, disenfranchised.

Delaware – Lobbying Fee Proposed to Pay for Oversight

Wilmington News Journal – Jonathan Starkey | Published: 4/9/2014

Legislation will be introduced in Delaware that would require lobbyists to pay an annual registration fee to help fund the state Public Integrity Commission. The bill would require lobbyists to pay the fee for each client they represent. Another measure filed recently would impose a fee for lobbyists who file disclosure reports late.

Georgia – Ethics Chief in Georgia Wins Suit over Ouster

Athens Banner Herald – Kate Brumback (Associated Press) | Published: 4/5/2014

A jury ruled former state ethics commission Executive Secretary Stacey Kalberman was unfairly forced from that job as retribution for investigating Georgia Gov. Nathan Deal’s 2010 campaign, and ordered the state to pay her $700,000. Kalberman’s lawyers tried to show the decision to cut her salary by $35,000 and to eliminate an aide’s job were a response to the pair’s desire to issue subpoenas for records in the investigation. Attorneys for the commission tried to establish the agency’s budget was in crisis and that was what motivated the cuts.

Indiana – Rep. Eric Turner, Facing Ethics Probe, Has Long and Deep Ties to Nursing Home Companies

Indianapolis Star – Tony Cook | Published: 4/4/2014

An Indiana House ethics committee is set to probe Rep. Eric Turner’s role in quashing legislation that would have halted new nursing home development and helped his son’s company. An Indianapolis Star review of Turner’s personal business interests found he has a stake in at least a half dozen companies that have been engaged in building, leasing, or investing in nursing home properties. The Star also found Turner did not list some of the companies on financial disclosure statements.

Iowa – Supreme Court Declines to Hear Iowa Campaign Finance Challenge

Reuters – Lawrence Hurley | Published: 4/7/2014

The U.S. Supreme Court declined to hear a challenge to an Iowa law that prohibits campaign donations from corporations but allows them from unions. By opting not to hear the case, the justices left intact an Eighth U.S. Circuit Court of Appeals ruling from June 2013 that upheld the ban.

Minnesota – Minnesota’s Limits on Campaign Donations to Be Challenged

Minneapolis Star Tribune – Rachel Stassen-Berger | Published: 4/8/2014

For decades, Minnesota law has said campaigns can raise 20 percent of their cash from lobbyists, PACs, and donors who give large amounts. After candidates hit that limit, they only can accept lesser amounts from subsequent contributors. Opponents say the “first come, first served” law is an unconstitutional limit of free speech, and the libertarian Institute for Justice will file a lawsuit challenging the statute.

Ohio – Ohio House Approves Eliminating Rule on Corporate Political Spending after Lengthy Debate

Cleveland Plain Dealer – Jeremy Pelzer (Northeat Ohio Media Group) | Published: 4/9/2014

The Ohio House passed legislation that would abolish a state rule restricting corporate political spending. Under the rule, corporations have to identify themselves in political ads and disclose money they spend in support of candidates. It also bars political spending made independently of campaigns by foreign-owned corporations and companies that recently received government contracts. House bill 483 now goes to the Senate.

Pennsylvania – Pa. Senate Passes Bill to Ban Cash Gifts to Legislators

Philadelphia Inquirer – Amy Worden | Published: 4/9/2014

The Pennsylvania Senate unanimously approved a bill that bans cash gifts to lawmakers and other elected and appointed officials in state and local government. The Senate also approved unanimously passed an ethics rule change for the chamber that carries the same provisions on cash and cash-like gifts. The only difference between the two is the bill caries the weight of the law so violators could be prosecuted. The ethics rule does not; it calls for a civil penalty.

Pennsylvania – Sources: U.S. prosecutors made no judgment on sting case

Philadelphia Inquirer – Craig McCoy and Angela Couloumbis | Published: 4/8/2014

The Philadelphia Inquirer reported federal officials never came to a final conclusion about the merits of a suspended legislative sting operation before Pennsylvania Attorney General Kathleen Kane asked them to halt that review. Kane, after revelations she decided to abandon the case in which several officials were caught on tape accepting cash and other gifts from an informant posing as a lobbyist, had said her decision had been endorsed by federal law enforcement officials who she has not identified by name.

South Carolina – SC Governor, AG Candidates Collected Excess Campaign Cash

The State – Andrew Shain | Published: 4/5/2014

An analysis by The State showed candidates for governor and attorney general in 2010 received $336,345 in campaign contributions above South Carolina’s legal limits. While the excessive donations represent a fraction of the amounts raised by these candidates, the newspaper said its analysis of state Ethics Commission data points to how campaigns can fail to follow campaign finance rules without getting caught by regulators.

Virginia – Va. Gov. Terry McAuliffe Wants Lobbyists to Report Gifts to Lawmakers’ Families

Columbus Republic – Alan Suderman (Associated Press) | Published: 4/8/2014

Virginia Gov. Terry McAuliffe amended an ethics bill that passed the General Assembly in the wake of a gifts scandal that led to corruption charges against former Gov. Bob McDonnell. McAuliffe’s proposed changes would require lobbyists to report what they spend on gifts and entertainment for both lawmakers and their families. Lawmakers will have to approve the governor’s changes.

Wisconsin – GOP’s Mike Ellis Caught on Recording Talking of Illegal Fundraising

Milwaukee Journal Sentinel – Patrick Marley and Daniel Bice | Published: 4/10/2014

A secretly recorded video produced by a conservative activist shows state Senate President Mike Ellis talking about creating and raising money for a committee to run negative ads against his Democratic opponent, which would be illegal for a candidate to do in Wisconsin. Ellis issued a statement acknowledging the conversation but said he learned the next day the proposal was illegal and did not pursue it.

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On Wednesday, April 9, the Ohio House of Representatives passed a large piece of Gov. Kasich’s mid-biennium budget proposal. Prior to passage, House Republicans added numerous amendments to House Bill 483; it is now more than 800 pages long.

One amendment voids administrative rule 111-3-05 and changes state campaign finance law by lifting the disclosure requirement for corporations and labor organizations making independent expenditures. It also allows foreign-owned corporations and corporations with state contracts to spend money promoting or opposing state candidates.

Former Secretary of State Jennifer Brunner issued the rule in 2011 and fears its repeal will make it easier for national political interests to operate state-based Super PACs.

The bill passed the House by a primarily partisan vote of 57-33 and will now be sent to the Senate for consideration.

Photo of the Ohio State Capitol by Alexander Smith on Wikimedia Commons.

On April 9, the Ontario, Canada Legislative Assembly held a second reading of Bill 179, which would amend the province’s Lobbyists Registration Act.

The bill, introduced on March 24, redefines “in-house lobbyist” to include paid directors as well as employees and paid directors whose lobbying duties, when combined with those of the employer’s other employees and paid directors, would constitute a significant part of the duties of one employee or director.

The bill requires a single filing of returns by the senior officer of the employer instead of requiring in-house lobbyists themselves to file returns.

Additional amendments to the filing procedures include requiring returns to indicate whether the lobbyist was previously in public office, what the goal of the reported lobbying was, and to provide the name of any minister, member, or member of the minister’s or member’s staff who was lobbied.

The bill also increases penalties for convictions of any offense from a maximum fine of $25,000 to a maximum fine of $25,000 for a first offense and a maximum fine of $100,000 for subsequent offenses.

Lobbying

“Comcast adds lobbyists for merger fight” by Megan R. Wilson in The Hill.

“Anyone can lobby – but there’s more to lobbying than driving a Beemer: Roy J. Wells” op-ed by Roy J. Wells in PennLive.

Utah: “Hatch Praises Lobbying” by Bryan Schott in Utah Policy.

Campaign Finance

“Million-Dollar Contributions Fuel Super PACs” by Kent Cooper in Roll Call.

Minnesota: “Minnesota’s limits on campaign donations to be challenged” by Rachel E. Stassen-Berger in the Star Tribune.

New York: “Ethics, campaign finance oversight just got weaker in Albany, say observers” by Michael Gormley in Newsday.

Wisconsin: “GOP’s Mike Ellis caught on recording talking of illegal fundraising” by Patrick Marley and Daniel Bice in the Journal Sentinel.

Ethics

“Illinois Democrat reveals ethics review” by Mario Trujillo in The Hill.

Kentucky: “KLEC: Former Rep. Arnold did not violate ethics laws” by Lawrence Smith on WDRB.

Pennsylvania: “Pa. Senate passes bill banning gifts of cash” by March Levy in The News Journal.

South Carolina: “Lawmakers propose appointing prosecutor to probe top state officials” by Andrew Shain in The Republic.

South Carolina: “Nikki Haley calls proposed broader ethics commission a ʹpoison pillʹ” by Andrew Shain in The State.

Government Tech and Social Media

Missouri: “Missouri politicians are mastering social media” by Nicholas J.C. Pistor in the St. Louis Post-Dispatch.

Women in Government Relations (WGR) is hosting an event tomorrow, April 10, called “Grassroots’ Greatest Hits: Campaigns that Made a Difference” from 2 to 4 p.m.

Our very own Federal Compliance Associate Rebecca South is a Co-Chair of WGR’s PACs, Politics & Grassroots Task Force, which organized this event.

Rebecca noted this will be an exciting session because leaders from three diverse organizations will be talking about their grassroots programs, offering creative ideas and the innovative ways they conduct advocacy. The speakers will be Kathleen Smith of Fresenius Medical Care North America, Tara Smith Anderson of the American Petroleum Institute, and Randi Chapman of the Alzheimer’s Association.

The WGR website offers this description: “An effective grassroots campaign can make all the difference in the outcome of a legislative or regulatory initiative.  Join us for this engaging roundtable discussion and hear from organizations who have put together winning, innovative campaigns! Learn how they did it and how you can apply the same creative approaches in your organization.”

You can find registration information on this WGR event page.

Yesterday President Barack Obama signed an executive order to prevent federal vendors from prohibiting their employees from inquiring about, disclosing, or discussing their compensation with fellow workers.

The April 8 order, titled “Non-Retaliation for Disclosure of Compensation Information,” is intended to discover, remediate, and help eliminate compensation discrimination.

The president’s order justified this prohibition by stating, “Federal contractors that employ [compensation discrimination] are subject to enforcement action, increasing the risk of disruption, delay, and increased expense in Federal contracting. Compensation discrimination also can lead to labor disputes that are burdensome and costly.”

The order takes effect immediately and will apply to new contracts entered into once the Department of Labor creates rules promulgating the order.

A lawsuit has been filed by the Institute for Justice, joined by several donors and candidates, challenging a Minnesota campaign finance law. Under section 10A.27(11) of the Minnesota Statutes, the “special sources limit” prohibits a campaign from raising more than 20 percent of its total contributions from lobbyists, political action committees, and large donors.

The Institute for Justice is arguing this law is unconstitutional under the First Amendment, stating “The first people to speak have full rights, but subsequent speakers have half rights.”

The case, Seaton v. Weiner, was filed in federal court on April 8.

Lobbying

“Lobbying World” in The Hill.

Hawaii’s SB 2629 Lobbyist Disclosure Bill passes House: “Hawaii lawmakers plow through mountain of bills” by Cathy Bussewitz and Sam Eifling  (Associated Press) in The Republic.

Wisconsin: “Dem legislator: Lobbyists don’t bother talking to us anymore” by Jack Craver in The Cap Times.

Campaign Finance

“Bitcoin players knock on Washington doors” by Jennifer Liberto in CNN Money.

“FCC: All Stations Must Post Political Files Starting In July” by John Eggerton in Broadcasting & Cable.

“Hillary Clinton knocks Supreme Court’s campaign finance decisions” by Dan Merica on CNN.

“Do Campaign Finance Violations Warrant Jail Time? | A Question of Ethics” by C. Simon Davidson in Roll Call.

Minnesota: “Minnesota’s limits on campaign donations to be challenged” by Rachel E. Stassen-Berger in the Star Tribune.

Ohio: “House expects vote on Ohio midterm budget bill” by Julie Carr Smyth (Associated Press) on WTRF.com.

Ethics

Delaware: “Lobbyist fees proposed to fund ethics office” by Jonathan Starkey in The News Journal.

Missouri: “Legislators differ on accepting gifts from lobbyists” by Allyssa D. Dudley in the Salem News.

South Carolina: “SC House panel wants to create larger ethics commission” by Andrew Shain in The State.

Elizabeth Bartz, president and CEO of State and Federal Communications, and Senior Compliance Associate Jim Warner are attending the State Government Affairs Council’s 2014 Annual Meeting in San Francisco, California. This year’s conference promises a great combination of expert sessions and networking. It runs from April 9-11.

Take a look at SGAC’s terrific agenda for the conference here. You can also follow the Twitter conversations from the conference at #SGACAnnualMtg14.

A special election was held in Quebec on April 7, resulting in a new majority government.

Premier Pauline Marois, leader of the Parti Quebecois, called the election hoping her party would garner a majority of seats within the National Assembly. However, the Liberals took 70 of the 125 seats, giving them a majority of seats in the legislature.

Marois lost her own seat in the Charlevoix-Cote-de-Beaupre riding, causing her to step down as the leader of the Parti Quebecois. Liberal Leader Phillipe Couillard will become the new Premier of Quebec.