The Senate has approved a new version of a bill to overhaul ethics. The Senate version of House Bill 3945 requires public officials to report sources of private income, but not the amounts paid. The bill creates educational ethics seminars for public officials and requires anonymous political groups to register and report if more than half of their activity goes toward influencing elections.

The bill as passed would make no changes to who would enforce the new ethics laws or to the practice of lawmakers policing themselves. An earlier version of the bill extended state lobbying regulations to the local level, but the Senate has removed this provision.

The bill now moves back to the House for approval. If the House does not approve the Senate version as is, the bill will go to conference committee.

National:

Outrage Over Sexist Remarks Turns Into a Political Fund-Raising Tool

New York Times – Amy Choziak | Published: 2/27/2014

With a record number of women in Congress and dozens more on the ballot, gender-charged attacks – stoked by the growth of social media and small-dollar Internet donations – can generate campaign contributions in an instant. In the past few months, Republicans have likened Democratic U.S. Senate candidate Alison Lundergan Grimes to an “empty dress” and referred to a pregnant woman as a “host.” Democrats blast these comments out to supporters to build voter lists and drum up donations.

Federal:

Democrats Embrace Super PACs, but Some Fear Lack of Focus on Midterm Elections

Washington Post – Matea Gold | Published: 2/28/2014

There is now a near-universal view among top donors and strategists that the Democratic Party needs its own super PACs to compete with the growing role such groups are playing on the right. But there are disagreements over how to use the independent organizations. Some say Priorities USA Action and other groups that can accept unlimited contributions are too focused on the 2016 presidential race and a potential Hillary Clinton candidacy, even as Democrats face a costly, uphill fight this year to retain a thin Senate majority and gain seats in the House.

Group Close to Obama Says It Erred on Donation

New York Times – Nicholas Confessore | Published: 3/4/2014

Organizing for Action, a political advocacy group backed by President Barack Obama, said its executive director set up a White House meeting for a businessperson entangled in a lawsuit with a federal agency, who then pledged to raise $100,000 for the group one day after the meeting. The organization also said on three occasions its fundraisers or other employees had tried to steer potentially controversial donations to allied liberal groups that did not disclose their donors.

From the States and Municipalities:

California – Senate Dems to Propose New Limits on Gifts, Fundraising

Sacramento Bee – Laurel Rosenhall | Published: 3/5/2014

Countering a series of scandals, California Senate Democrats plan to propose sweeping changes to the Political Reform Act, including stricter limits on accepting gifts and campaign contributions. Sources said the legislation will cut roughly in half the $440 annual limit on gifts to elected state officials, and prohibit candidates from holding political fundraisers at the homes of lobbyists.

Colorado – Critics See Proposed Ethics Commission Cue as Bad Medicine

Colorado Independent – John Tomasic and Tessa Cheek | Published: 3/2/2014

A bill that aims to fix the Colorado Independent Ethics Commission comes as the number of complaints filed with the panel continues to grow. House Bill 1258 seeks to bolster protections for state employees who are brought before the commission. It would ensure they are provided with tax-paid legal counsel and have the right to sue individual members of the commission for damages. Critics say the measure would do more harm than good.

Colorado – First and Only Director of Colorado Ethics Commission Steps Down

Denver Post – Lynn Bartels | Published: 3/1/2014

Colorado Independent Ethics Commission Executive Director Jane Feldman has submitted her resignation, effective at the end of March. Complaints about the commission have led to legislation being introduced this session. That would affect its operations.

Florida – Special Interests Pay Their Way onto Florida’s Legislative Agenda

Bradenton Herald – Mary Ellen Klas (Miami Herald) | Published: 3/3/2014

Many of the decisions about what issues make the agenda of Florida’s 2014 legislative session have already been made, in large part due to special interest groups and a torrent of money flowing into the coffers of legislative political committees. Longtime lobbyist Bob Levy said money has always been a major part of what happens in Tallahassee, but the difference is the number of zeroes. “It existed then, but it was $50,000; today it’s $500,000,” said Levy.

Missouri – Small Number of Donations Fuel Missouri Political Spending

St. Louis Post-Dispatch – Walker Moskup | Published: 3/3/2014

From 2011 to 2013, more than half of the money raised by Missouri campaign committees – about $67 million – came from donations of $5,000 or more. Those larger donations represent about three percent of the total number of contributions. The absence of contribution limits in the state exacerbates the reliance on mega-donors, said Missouri State University professor George Connor.

Pennsylvania – D.C.-Based Democratic ‘Super PAC’ Sues to Remove Pa. Law Blocking it from Getting Corporate and Union Money

Harrisburg Patriot-News – Matt Miller | Published: 3/3/2014

A Washington, D.C.-based super PAC filed a lawsuit asking a federal judge to void a Pennsylvania law that is blocking its efforts to raise funds from corporations, associations, and unions in the state. The General Majority PAC contends the U.S. Constitution and a Supreme Court ruling grant it the right to solicit money from those sources to finance its political message during Pennsylvania’s legislative races this year.

Utah – Free Lunches, Receptions Abound for Utah Legislature

Salt Lake Tribune – Lee Davidson | Published: 3/3/2014

While events featuring free food remain a popular way to attract Utah lawmakers to hear lobbying pitches, they appear to be changing. The number of free lunches, which are expensive for sponsors, dropped by nearly half this year. Less-costly receptions nearly doubled. Still, special interests do not see free “wining and dining” disappearing any time soon. That is too bad, say groups who cannot afford that style of lobbying.

Virginia – Va. Moves to Tighten Ethics Rules, But Not Too Much

Washington Post – Michael Laris | Published: 3/1/2014

The Virginia House and Senate have passed different bills that address ethics reform. They will work on a compromise as the legislative session draws to a close, but neither bill addresses key loopholes. Lawmakers said it was more difficult than they expected to make far-reaching changes, in part because as they got into the details, they became concerned that imposing tough provisions could end up inadvertently criminalizing their own honest mistakes.

Wisconsin – Wisconsin Senator Seeks to Allow In-Session Lobbyist Checks

Milwaukee Journal Sentinel – Patrick Marley | Published: 3/4/2014

Recently introduced bills in Wisconsin would exempt political groups behind issue ads from disclosing donors and allow lobbyists to funnel donations to candidates. Senate Bill 655 would allow lobbyists to provide contributions on behalf of others to elected officials at any time. The bill also would move up the date on which lobbyists can personally give campaign contributions from June 1 to April 15 of election years.

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.

Lawmakers called a press conference to announce a package of bills to make major upgrades to government accountability rules and practices. Senator Ricardo Lara and Kevin de Leon have filed Senate Bill 1441 through Senate Bill 1444 as spot bills, with the intention to add substantive provisions at a later date.

The bills will include a ban on fundraisers at lobbyists’ homes and a ban on all gifts from lobbyists.

There is also a proposal to lower the current non-lobbyist gift limit of $440 to $200 for state and local officials.

The Senate is considering campaign finance bills to narrow reporting requirements of advocacy groups and widen the ability of lobbyists to provide campaign contributions. Senate Bill 654 would further distinguish non-reportable “issue advocacy” from reportable “candidate advocacy.”

Briefly in 2010, the Government Accountability Board (GAB) used its own discretion to classify campaign activity until both liberal and conservative groups filed lawsuits.

Senate Bill 655 allows a lobbyist to deliver political contributions at any time and allows for lobbyists to make personal contributions as early as April 15 of a general election year. Currently, lobbyists are prohibited from delivering contributions during a legislative session and must wait till June 1 to personally make contributions.

Lobbying

“K Street gears up for Hillary” by Kevin Bogardus in The Hill.

“Groups Try to Mute the Comcast Lobby | K Street Files” by Kate Ackley in Roll Call.

Louisiana: “Former Jindal aide Rainwater looks to lobbying, consulting” by Michelle Millhollon in The Advocate.

New Jersey: “Lobbying expenditures climbed over $60 million in 2013, report finds” in PolitickerNJ.

Campaign Finance

“New Challenges to Campaign Finance Regulation” opinion piece by David Friedman in The Stanford Daily.

New York: “Women stump for campaign finance reform” by Casey Seiler in the Capitol Confidential.

Wisconsin: “Walker says he’s not focused on Republican bills affecting campaign donations, spending” by Scott Bauer (Associated Press) in The Republic.

Ethics

California: “Senate Democrats proposing revamp of campaign, gift laws” by Patrick McGreevy in the Los Angeles Times.

Campaigns and Elections

“Thought the Senate map was set?” by Jessica Taylor in The Hill.

“2014 Governors Races: A Look at the Too-Close-to-Call Contests” by Louis Jacobson in Governing.

South Carolina: “Cheers! SC Bill Aims to Lift Booze Ban on Election Day” by Drew MacKenzie in Newsmax.

Procurement

“Bringing Innovation to Procurement” by Justin Brown in Government Technology.

Gov. Mike Beebe has signed a bill allowing him not to call a special election to fill the lieutenant governor’s office.

Senate Bill 139, now Act 210, allows the governor to forgo a special election to fill a vacancy in the lieutenant governor’s office when the vacancy occurs within 10 months of a general election, if holding a special election would be impractical or burdensome.

Mark Darr left the lieutenant governor’s office vacant after being fined $11,000 by the state Ethics Commission for misuse of campaign contributions and taxpayer dollars.

State and Federal Communications, Inc. recently was honored as one of Northeast Ohio’s fastest growing companies in 2013! Weatherhead 100, the organization offering the award, has a mission to be “a venue for encouraging the truest spirit of entrepreneurialism and rewarding those companies that serve as a beacon to all businesses in Northeast Ohio.” This is the second year the company has received the award.

Governor Pat McCrory drew widespread criticism for his decision to leave the 12th Congressional District seat formerly held by Mel Watt vacant until the regularly scheduled general election in November of this year. In a possible attempt to appease his critics, McCrory has called a belated special election to fill the vacant seat.

The special election will be held on the same day as the general election, consistent with McCrory’s budgetary concerns related to holding the special election on a different day. Because the two elections will occur on the same day, most candidates will be on the ballot twice.

Those candidates running in the special election will serve the remainder of the term expiring in 2014. Those candidates running in the general election, a slate nearly identical to that of the special election, will succeed the prevailing candidate in the special election and serve a two year term beginning in 2015.

Only two candidates chose not to participate in both elections, Republican Leon Threatt and Democrat Rajive Patel. Threatt and Patel will only appear on the general election ballot.

Photo of Governor Pat McCrory courtesy of Hal Goodtree on Wikimedia Commons.

Lobbying

“Lobbying World” in The Hill.

Kentucky: “Ethics Reporter: First month of session sees one-month record of $1.9 million for lobbyists” by the Kentucky Ethics Commission in KY Forward.

Wisconsin: “Wisconsin senator seeks to allow in-session lobbyist checks” by Patrick Marley in the Journal Sentinel.

Campaign Finance

Illinois: “Rauner’s $6 million sets record in Illinois governor race” by Rick Pearson in the Chicago Tribune.

Wisconsin: “State Senators introduce campaign finance legislation” by Andrew Hahn in The Daily Cardinal.

Ethics

“Former FEC General Counsel Retruns to Battle” by Kent Cooper in Roll Call.

California: “Scandals cost California Democrats supermajority in Senate” by Jessica Calefati in the Contra Costa Times.

Elections

“Texas 2014 Primary Election Results” in the Texas Tribune.

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

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The Board of Supervisors has adopted a Lobbyist Ordinance to regulate any person who contacts certain county officials with the purpose of promoting, supporting, modifying, opposing, or causing delay or abandonment of conduct. Ordinance No. NS-19-42 regulates contract lobbyists, in-house lobbyists, lobbying firms, and expenditure filers who influence policy without directly contacting officials.

Legislative, procurement, and grassroots activity is covered by the ordinance, which specifically provides for the possibility a political action committee will qualify as an in-house lobbyist.

Registration and disclosure forms will be available when the ordinance becomes effective on March 27, 2014.

Here is our March – April calendar. State and Federal Communications will be attending these events. If you plan to be there as well, be sure to say hello!

March 3-6   PAC National Conference, Miami Beach, Florida

March 16-19   NASPO Marketing to State Governments, San Diego, California

April 7-8   PAC Spring Executive Meeting, Washington, D.C.

April 9-11   SGAC Annual Meeting, San Francisco, California

April 30 – May 2   OSBA Convention, Columbus, OH

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Our website, www.stateandfed.com, is full of all of the information you need to handle compliance in your government relations or legal offices for lobbying, campaign finance, procurement, pay-to-play, and gift laws in the 50 states, District of Columbia, Federal, more than 250 municipalities, and Canada.

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