The Ethics Commission will be holding a series of workshops over the next few months to receive input concerning proposed amendments to campaign laws. The suggested reforms include classifying the duplication of candidates’ campaign materials as nonmonetary contributions instead of independent expenditures.

In addition, the commission seeks to curb the practice of making independent expenditures on credit so as to delay disclosure of donors who verbally agree to pay the debt after the election.

Commission staff researched and produced a report to be discussed at the next commission meeting on Thursday, March 13, 2014. The report is available here.

Virginia’s lack of gift laws has been thrown into the spotlight recently with the federal indictment of former Gov. Bob McDonnell. McDonnell became embroiled in scandal after accepting gifts worth thousands of dollars from Star Scientific CEO Jonnie Williams. While state law required all gifts of more than $50 to be disclosed, there was no limit on what a public official could accept from any donor. Williams also gave gifts to McDonnell’s wife and daughters; these gifts went undisclosed because state law does not require gifts to officials’ family members to be disclosed.

The national attention on Virginia has turned the tide in favor of ethics reform. Several ethics bills filed before the session convened on January 8 have now been incorporated into Senate Bill 649. This comprehensive bill prohibits gifts of more than $250 from lobbyists, requires reporting of gifts to immediate family members, changes lobbyist reporting from annual to semiannual, and establishes the Virginia Conflict of Interest and Ethics Advisory Council, a newly created legislative agency tasked with facilitating compliance with the state’s ethics laws. The bill passed the Senate on February 10 and the House of Delegates with a substitution and amendments on February 26, but the Senate rejected the House’s amended bill on February 28.

While it remains to be seen whether the General Assembly will pass ethics reform before it adjourns on March 8, newly sworn-in Gov. Terry McAuliffe took swift action to ensure his administration would not face the same ethical issues as McDonnell’s had. On his first day as governor, McAuliffe signed Executive Order 2, which prohibits the acceptance of gifts in the executive branch exceeding $100 per calendar year. The order became effective immediately upon his signature. Gifts from lobbyists and principals are now restricted to $25. The order does allow for some exceptions, such as excluding items of $25 or less from the definition of gift. It also allows the receipt of certain items while engaging in an activity serving a legitimate public purpose, such as food and refreshments served at certain events.

Q. My company is planning to get more engaged on the local level. What are some things I need to consider?

A. There are many considerations for a company prior to engaging on the local level. To ensure you are in compliance while interacting with municipal officials, it is important to check whether the municipality has a lobbyist registration ordinance, gift rules, or a pay-to-play ordinance. These provisions, if present, will impact your ability to engage with municipal officials. Requiring lobbyists to register on the municipal level is a quickly emerging trend throughout the U.S. This trend is not just impacting individuals who engage in what is generally regarded as lobbying, but also affecting permitting, sales, and other business functions.

For example, in San Jose, California, lobbying includes attempting to influence the proposal, drafting, development, adoption, recommendation, or approval of any contract, permit, license, or hiring action. The proliferation of these types of provisions has made it such that applying for a building permit, attempting to contract with the state, or even attempting to influence the selection of a candidate to be hired may be considered lobbying depending on the jurisdiction and the circumstances. The broad application of lobbying ordinances in municipalities merits attention and consideration prior to engaging to ensure registration is completed if needed.

An additional consideration is whether your company belongs to any trade associations with a lobbying presence in the municipality. Trade associations can help facilitate introductions to key players. However, you must still pay attention to the lobbyist registration threshold. It is a common misconception that being in the presence of a registered lobbyist negates an individual’s registration requirement. This is very rarely the case and should not be relied upon as a general rule. For more information about local level lobbying, please visit our website, www.stateandfed.com.

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.

Lobbying

“Lobby shop strikes gold with Wyden hire” by Megan R. Wilson in The Hill.

“Comcast now a $19 million lobbying powerhouse” by Todd Shields, Stephanie Green and Laura Litvan (Bloomberg News) in the Chicago Tribune.

“David L. Cohen quite influential without being a ʹlobbyistʹ” by Jonathan Tamari in The Inquirer.

“Shadow lobbying spends three times more than traditional lobbying” in the AG Beat.

Massachusetts: “Lobbying Spending Increases Dramatically” by The Associated Press in WGBH.

Massachusetts: “Review: Mass. health lobby spent $100M since 2007” by Steve LeBlanc (Associated Press) in the Boston Globe.

New Mexico: “New Mexico Debates New Lobbyist Rules” by Liz Farmer in Governing.

Campaign Finance

“Supreme Court disrupted by protest over campaign finance ruling” by Al Kamen in The Washington Post.

“Hidden camera footage surfaces of Supreme Court debate” by Mario Trujillo in The Hill.

“Coming Soon from SCOTUS: Campaign Finance and Affirmative Action” by Damon root in Reason.

“Facing 140,000 Comments, Treasury Braces for IRS Hearing, Legal Fight” by Eliza Newlin Carney in Roll Call.

California: “Identity of Campaign Finance Scandal Informant Revealed” by Wendy fry on NBC 7 San Diego News.

Florida: “Why this Florida congressional race is one of the most expensive ever” by Amber Phillips in The Denver Post.

Florida: “Political campaign fundraisers lose the frills” by James L. Rosica in The Tampa Tribune.

Missouri: “Former St. Louis alderman fined for using campaign funds for personal use” by Nicholas J.C. Pistor in the St. Louis Post-Dispatch.

Pennsylvania: “D.C.-based PAC sues, saying Pa. can’t ban campaign contributions” by Kate Giammarise in the Pittsburgh Post-Gazette.

Texas: “Interactive: Campaign Finance Viewer for March Primaries” by Ryan Murphy and Travis Swicegood in The Texas Tribune.

The Feds

“Washington-Area Federal Offices Are Closed Monday” by Kellie Lunney in Government Executive.

Ethics

Colorado: “Critics see proposed ethics commission cure as bad medicine” by John Tomasic and Tessa Cheek in the Colorado Independent.

Colorado: “Director Jane Feldman leaves Colorado Ethics Commission” by Lynn Bartels in The Denver Post.

South Carolina: “Ethics reform bill heads back to SC House without changes to legislative oversight of members” by The Associated Press in The Republic.

Jane Feldman is stepping down as Executive Director of the Colorado Independent Ethics Commission. She is the first and only director to serve, as the commission is a product of a 2006 ethics ballot measure.

Luis Toro, director of Colorado Ethics Watch, praised Feldman, calling her “the very model of a dedicated civil servant.”

While Feldman looks forward to retirement from state government, her critics claim she may simply be a scapegoat. Complaints brought the commission under public scrutiny, and a House committee will soon hear a bill concerning the commission’s procedural mechanisms. Meanwhile, the commission is investigating Gov. John Hickenlooper for alleged gift violations.

There is no word yet of a new Executive Director.

Lawmakers have passed a measure to keep the lieutenant governor’s office vacant until the November general election.

Senate Bill 139 allows Gov. Mike Beebe to postpone a special election for the vacancy left by former Lt. Gov. Mark Darr, who left office following $11,000 in fines for ethics violations.

The bill awaits Beebe’s signature.

SB12, signed into law September 2013, goes into effect today. The bill amends the state procurement code and makes changes to procurement preferences, contract awards, small purchase procedures and thresholds, minimum competition requirements, methods of bid submission, vendor registration requirements, and applicable definitions.

Vendors may contact Chief Procurement Officer Jason Soza with any questions concerning the bill. Additionally, a summary of all changes can be found on the Department of General Services website.

National:

In Some States, gaming Industry Consultants Double as Gambling Regulators

Las Vegas Review-Journal – Hannah Dreier (Associated Press) | Published: 2/23/2014

As more cities and states embrace legalized gambling across the country, private companies are being hired to write regulations and vet casinos, even as the same firms work the other side of the fence, helping casinos enter new markets and sometimes lobbying for their interests. Letting consulting companies with deep ties to the gambling industry decide how casinos are run is a significant departure from how established gambling states, including Nevada and New Jersey, do things.

Federal:

Where Have All the Lobbyists Gone?

The Nation – Lee Fang | Published: 2/19/2014

January records show spending on federal lobbyists decreased for the third consecutive year, and the number of registered lobbyists dropped to the lowest level since 2002. Despite word if its demise, some experts believe lobbying is not becoming extinct; it is only going underground. The combination of a loophole-ridden law, meager enforcement efforts, and a sophisticated strategy permitting third parties to develop faux-grassroots campaigns, as well as White House executive orders that dissuaded lobbyists from registering, all combined to collapse the system designed to track federal lobbying.

From the States and Municipalities:

California – California State Sen. Ron Calderon Indicted on Corruption Charges

Fresno Bee – Laurel Rosenhall (Sacramento Bee) | Published: 2/21/2014

California Sen. Ron Calderon was charged with accepting $100,000 in bribes, lavish trips, and no-show jobs for his children in exchange for pushing legislation to benefit a hospital engaged in billing fraud and participating in a film industry tax scheme that actually was an FBI sting. Calderon’s brother, Tom, a former state lawmaker-turned-lobbyist, was charged with money-laundering for funneling bribes through a tax-exempt group he controlled.

California – Lobbyist Kevin Sloat’s Penalty Falls Short, Ex-Employee’s Lawyer Says

Los Angeles Times – Patrick McGreevy and Paige St. John | Published: 2/20/2014

The California Fair Political Practices Commission signed off on a $133,500 fine for lobbyist Kevin Sloat, who made improper campaign contributions to elected officials. The attorney whose lawsuit triggered the investigation, criticized the commission for not addressing other allegations. The suit said Sloat and his firm arranged free golf games for lawmakers at a course run by a client, helped legislators get sports and concert tickets, and assisted one state Assembly member in buying art at a deep discount.

Connecticut – Federal Grand Jury Probes GOP Contracts

Connecticut Post – Ken Dixon and Neil Vigdor | Published: 2/21/2014

Lawmakers say they believe federal authorities are trying to determine whether any Connecticut House Republicans were pressured to use a particular company for their political campaign mailings. Federal subpoenas show the FBI wants to see contracts and correspondence between the House Republicans and two direct mail companies that have been used by the caucus members and the caucus’ PACs.

Georgia – Ethics: The ghost of Legislatures past

Georgia Public Broadcasting – Jeanne Bonner | Published: 2/20/2014

Georgia lawmakers attended a joint question and answer session to straighten out growing confusion about how to abide by the law that lobbyists’ spending on individual legislators to $75 per expenditure. Critics and supporters alike say it contains exceptions that may undermine the intent to rein in lobbyists’ power. The state ethics commission probably will not issue guidelines on complying with the law until this summer.

Hawaii – Lobbyists Would Have to Disclose More Details on Political Spending

Honolulu Civil Beat – Nathan Eagle | Published: 2/25/2014

Hawaii lawmakers are advancing legislation this session that would require lobbyists to account for the money they are spending by breaking it into categories that show how much goes toward food, entertainment, gifts, loans, and other areas. A separate bill aims to make lobbying disclosure reports available in a timelier manner, particularly after a special legislative session.

Minnesota – Bill Seeks to Undo Senjem’s Loosening of Gift Ban

Rochester Post-Bulletin – Heather Carlson | Published: 2/25/2014

During the last legislative sessionin Minnesota, a campaign finance bill was successfully amended to allow lawmakers and legislative employees to attend receptions thrown by lobbyists without having to pay for food and drinks. It does require that all 201 lawmakers be invited and given at least five days’ notice. Now, state Rep. Ryan Winkler has sponsored a bill to reinstate a ban on the practice.

Missouri – Ethics Bills Draw Little Praise from Missouri Lawmakers They Would Regulate

St. Louis Post-Dispatch – Virginia Young | Published: 2/26/2014

Members of the Missouri House General Laws Committee agreed the state needs to update its ethics laws, but were divided on how to do it and how far an overhaul should go. The committee considered several proposals, including ones that would require limits on campaign contributions and lobbyist gifts.

New Jersey – Bergen County Freeholders Tighten Limits on Political Donations by No-Bid Contractors

Bergen Record – John Ensslin | Published: 2/20/2014

Bergen County freeholders approved a “pay-to-play” bill that will drastically lower the amount of money contractors can donate to county political parties. The freeholders passed a resolution that will lower the allowed contribution from no-bid county contractors from $5,200 to $2,000. The move represents a reversal of a 2013 measure that softened restrictions during a critical election year for both parties and led to criticism from watchdog groups.

Oregon – Oregon Secretary of State’s Website is Back Up and Running

Salem Statesman Journal – Hannah Hoffman | Published: 2/24/2014

Oregon Secretary of State Kate Brown announced her department’s online systems – the Central Business Registry and ORESTAR, the state’s online campaign finance reporting system – are back up and running after being shut down for nearly three weeks following a security breach. Brown said a grace period has been established for political campaigns filing overdue reports, with fines for late transactions being waived.

Pennsylvania – Council Committee OKs Private Gifts of Up to $99 in Value to City Workers

Philadelphia Inquirer – Bob Warner | Published: 2/24/2014

A Philadelphia City Council committee gave initial approval to specific limits on the value of gifts that city workers can accept. The city’s five-decades-old gift law had never sets limits on the value of gifts that city workers, including elected officials, can receive. The ordinance would allow city employees to annually accept noncash gifts worth up to $99, even from people with official business before them.

Utah – Utah Legislature: Vote up or down – conflict or not

Salt Lake Tribune – Lee Davidson | Published: 2/24/2014

Utah and Oregon are the only two states where lawmakers cannot abstain and are required to vote even if they have a major conflict-of-interest on a bill. Utah Rep. Jim Nielson has introduced legislation to allow lawmakers to abstain or vote “present.” But he does not expect it to go far. In part, that is because leaders see conflicts as natural in a citizen Legislature, and they worry that creating more pressure to declare them and skip votes could get out of hand. Ethics reformers say a better system is needed.

Virginia – House Passes Ethics Bill with ‘Turkey Dinner Amendment’

The Daily Progress – Marcus Schmidt (Richmond Times Dispatch) | Published: 2/26/2014

The Virginia House passed a Senate ethics reform package. Senate Bill 649, which is almost identical to a proposal a House committee hammered out over several weeks, puts a $250 cap on gifts from lobbyists and anyone with business before the state, and it creates an ethics advisory council that will oversee and update Virginia’s financial disclosure system. Del. C. Todd Gilbert said he expects both bills to be dealt with in conference committee before one broad proposal heads to Gov. Terry McAuliffe.

Washington – State Legislators’ Financial Disclosures Fall Short

Seattle Times – Jim Brunner | Published: 2/22/2014

Although Washington frequently gets high marks from national open-government groups, some experts say one area where the state is lagging is in the personal financial disclosure by public officials. There are other flaws in the state’s disclosure system that leave holes in the public’s understanding of the financial affairs of their elected officials. As a result, some lawmakers file erroneous or confusing reports that go uncorrected unless spotted by political opponents, journalists, or activists.

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.

Comprehensive ethics reform has advanced through the House of Delegates. Senate Bill 649 was passed by the House on February 26 with a committee substitute.

The passed bill included an amendment prohibiting the governor and attorney general from accepting tangible gifts from representatives of companies engaged in litigation with the state. The amendment stems from former Attorney General Ken Cuccinelli’s acceptance of Thanksgiving dinner from Star Scientific CEO Jonnie Williams, and is designed to prohibit such conduct.

The Senate bill and a similar House proposal will likely be worked into one broad ethics proposal in conference committee before heading to Governor Terry McAuliffe for his signature.

Photo of the Virginia Capitol Rotunda courtesy of Albert Herring on Wikimedia Commons.

Hello, I am Melissa Coultas, Marketing Manager at State and Federal Communications. I will be part of our team leaving for Miami Beach on Sunday to attend the 2014 National PAC Conference. Here is why I am excited to be there:

State and Federal Communications is hosting a Pre-Conference Luncheon on Monday, March 3, at 11:30 a.m. During lunch you can tour our new website and find out more about our various government compliance services. Additionally, our very own Nola Werren, compliance expert with State and Federal Communications for 17 years, will be on-hand to answer any of your questions.

We are giving away a $25 Starbucks gift card to all attendees. So, lunch and coffee are on us in Miami.

See you there!

Lobbying

“Tax plan sends shockwaves down K Street” by Vicki Needham in The Hill.

“Movie Industry, In a Switch, Is Courting the GOP” by Brody Mullins and Ben Fritz in The Wall Street Journal.

“Former software lobbyist tapped for trade post” by Julian Hattem in The Hill.

“Patton Boggs begins new merger talks” by Megan R. Wilson in The Hill.

“‘Card check’ victors reap little reward” by Kevin Bogardus in The Hill.

“Buying alpha: Here’s the easiest way to stock gains” by Jeff Cox on CNBC.

Missouri: “Who bought lawmakers’ lunch? Lobbyist splits hairs” by Virginia Young in the St. Louis Post-Dispatch.

New Mexico: “N.M. lobbyists spent $200K on dinners, golf, skiing” by The Associated Press on KFDA News.

New York: “Mayor Accepted Lobbyist Money, Amid Improper Payments” by Jeff Preval on WGRZ.

Campaign Finance

Connecticut: “New campaign finance law sparks debate” by Isabelle Taft in the Yale Daily News.

West Virginia: “Campaign finance bill dies in the House” in the West Virginia Metro News.

Ethics

Alabama: “‘Clean’ ethics legislation passes in Senate” by Kala Kachmar in the Montgomery Advertiser.

Virginia: “House passes ethics bill with ‘turkey dinner amendment’” by Markus Schmidt in the Times Dispatch.

Campaigns, Conventions, and Elections

“And the finalists for the GOP convention are ….” by Rebecca Shabad in The Hill.

“Practitioner’s Toolbox: One Political Startup’s Efforts To Engage Potential Supporters Online” by Sarah Lai Stirland in TechPresident.

Arkansas: “Ark. House committee approves lt. gov. bill” by The Associated Press in the San Francisco Chronicle.

From the State Legislatures

Tennessee: “Bill would give Tennessee Legislature power over attorney general” by Todd South in the Times Free Press.

West Virginia: “Lawmakers push dozens of bills before deadline” by Jonathan Mattise (Associated Press) in the Seattle Post-Intelligencer.

The Public Affairs Council’s National PAC Conference is just a few days away. If you are attending, we would like to invite you to the State and Federal Communications Pre-Conference Luncheon.

We are offering a $25 Starbucks gift card to all attendees. So, coffee is on us in Miami!

Starbucks is close to the Loews Hotel. Take a look:

The luncheon runs from 11:30 a.m. to 1:30 p.m., but we don’t expect you to come for all 2 hours; just stop by and say hello. During lunch you can tour our new website and find out more about our various government compliance services. Additionally, our very own Nola Werren, compliance expert with State and Federal Communications for 17 years, will be on-hand to answer any of your questions.

Hope to see you there!

Lobbying

“Lobbying World” in The Hill.

“Lobbying is booming under Obama. Here’s why.” by Jeremy Slevin on MSNBC.

“Who Says There Are No Second Acts in Politics?” by Jordan Michael Smith in Politico.

“Lobbyist drafts bill to ban gays from NFL” by Rebecca Shabad in The Hill.

“Firm disowns lobbyist selling anti-gay bill” by Mike Lillis and Rebecca Shabad in The Hill.

“More downsizing at Patton Boggs” by Megan R. Wilson in The Hill.

Virginia: “Report: Va commerce secretary broke lobbying rule” by The Associated Press in The Washington Post.

Campaign Finance

“Worse Than it Looks? How to Depict Big Money in Politics.” by Ciara Torres-Spelliscy in the Brennan Center for Justice Blog.

Louisiana: “Louisiana politicians who owe $908,000 in fines for campaign finance violations: List” in The Times-Picayune.

Pennsylvania: “New Website Design Aims to Make Campaign Finance Reports Easier to Find” by Deanna Garcia in WESA/NPR News.

Utah: “Bill would impose fine for late campaign finance reporting” by Dennis Romboy in Deseret News.

Political Advertising

Rhode Island: “R.I. panel proposes repealing law banning anonymous, negative campaign literature” by Philip Marcelo in the Providence Journal.

Ethics

Missouri: “Missouri lawmakers divided on ethics law process” by Jordan Shapiro (Associated Press) in the Connecticut Post.

Missouri: “Ethics bills draw little praise from Missouri lawmakers they would regulate” by Virginia Young in the St. Louis Post-Dispatch.

A proposed ordinance setting a dollar limit for gifts has advanced out of committee. On February 24, the City Council’s Committee on Law and Government voted to submit the bill for Council action.

The proposed ordinance prohibits gifts exceeding $99 per calendar year to any city officials or employees, and bans all cash gifts.

The ordinance could pass as early as next week.