Gov. Scott Walker issued Executive Order 129, requiring the Legislature to convene a special session to act on legislation regarding the governor’s new “Blueprint for Prosperity.”

Walker’s plan aims to lower income taxes, property taxes, and state withholding income taxes, while investing part of a $911 million surplus in technical colleges.

Walker has already ordered the Department of Revenue to update the income tax withholding and increase workers’ paychecks starting in April.

Phil Mendelson, the chairman of the Council of the District of Columbia, introduced a bill that would bar people who made political contributions from obtaining contracts or doing other business with the city.

Mendelson said the motivation behind his bill was to end the perception of pay-to-play in Washington, D.C.

National:

More Compliance Chiefs Get Direct Line to Boss

Wall Street Journal – Gregory Millman and Ben DiPietro | Published: 1/15/2014

Many companies have responded to more aggressive government enforcement efforts by touting their compliance programs and even raising the rank of their chief in-house watchdog. But two surveys found the compliance department’s status within a company is often ambiguous.

Top U.S. Corporations Funneled $185 Million to Political Nonprofits

The Center for Public Integrity – Michael Beckel | Published: 1/16/2014

Scores of large companies gave at least $185 million to politically active nonprofits in 2012, according to the Center for Public Integrity. Shadowy spending has targeted elections at all levels, from the White House to state party committees. The extent of financial involvement from major corporations has been unclear, as there has been only a scant paper trail to examine.

Federal:

A Loophole Allows Lawmakers to Reel in Trips and Donations

New York Times – Eric Lipton | Published: 1/19/2014

A loophole in federal law allows members of Congress to hit hot spots like the Napa Valley wine country and famed golf courses, as well as five-star hotels in Puerto Rico, Las Vegas, and Florida, for campaign fundraisers. Campaigns and leadership PACs now pay the expenses for the catering and the lawmakers’ lodging at these events – so they are not gifts – with money collected from corporate executives and lobbyists, who are still indirectly footing the bill.

Super PAC, Outside Spending Chiefs Make Big Bucks

Roll Call – Eliza Newlin Carney | Published: 1/16/2014

New disclosures reveal details about the six- and seven-figure salaries reaped by the political consultants, lawyers, fundraisers, and media buyers who ran the top super PACs and politically active nonprofits in 2012. Such groups spent more than $1 billion in the first presidential contest since the U.S. Supreme Court deregulated independent campaign spending, shattering all previous records, and political professionals cashed in.

From the States and Municipalities:

California – Three Men Charged with Funneling Illegal Campaign Funds

Los Angeles Times – Tony Perry | Published: 1/22/2014

Hundreds of thousands of dollars in illegal campaign contributions from a wealthy Mexican businessperson supported San Diego politicians, according to a federal complaint. A retired San Diego police officer, the owner of a Washington, D.C.-based election services business, and a lobbyist have been charged with conspiring to funnel more than $500,000 in illegal donations into recent campaigns.

Florida – Ex-Sweetwater Mayor Manuel Maroño Sentenced to 40 Months in Prison

Miami Herald – Jay Weaver | Published: 1/23/2014

Former Sweetwater Mayor Manny Maroño was sentenced three years and four months in prison for his part in a kickback scheme. Maroño and lobbyist Jorge Forte pleaded guilty to a conspiracy charge that accused them of illegally splitting $60,000 for official favors and concealing those payments from the public. Both men agreed to promote a sham federal grant program for economic development that was peddled by FBI undercover agents who paid them bribes for their political support in Sweetwater.

Georgia – Ethics Commission Strips Personnel Decisions from Exec. Director

WSB – Sandra Parish | Published: 1/16/2014

Members of the Georgia ethics commission voted to give themselves the power to hire and fire employees, a duty that had been the executive director’s. In addition, the commission took no action concerning its attorney, Elisabeth Murray-Obertein, who is also a key witness in a pair of whistleblower lawsuits against the agency, after a police report said she was intoxicated at work.

Illinois – State Official Returned to Work after Nearly 30 Months of Paid Leave

Chicago Tribune – Jared Hopkins | Published: 1/21/2014

Joel Campuzano was on paid administrative leave for nearly 30 months while investigators in Illinois examined allegations he used his position to benefit himself and his family. During this time, he received seven salary increases. The state lost its fight to fire Campuzano, who returned to work in December and now makes $92,424. State Rep. Jack Franks said he supports the need for thorough investigations but agency directors should be limited in how often they can extend paid leave.

New Jersey – Political Pressure in Zimmer Allegation May Not Constitute a Crime, Legal Experts Say

Bergen Record – Herb Jackson | Published: 1/22/2014

Hoboken Mayor Dawn Zimmer accused New Jersey Gov. Chris Christie’s administration of tying Superstorm Sandy aid to a politically connected development proposal. If Zimmer’s allegations are true, lawyers said the government will need to prove Christie or his administration received or expected to receive some kind of benefit in exchange for pressuring the mayor for a federal crime to have occurred. Attorneys disagreed on how clear-cut that benefit has to be, however.

Ohio – Should Politicians Have the Right to Lie? U.S. Supreme Court Could Decide in Ohio Case

Cleveland Plain Dealer – Sabrina Eaton | Published: 1/22/2014

The U.S. Supreme Court agreed to hear a case challenging an Ohio law that bars candidates and issue groups from lying in their campaigns. The Susan B. Anthony List claims the state’s criminalization of false political speech violates First Amendment rights in a similar fashion to the Stolen Valor Act, which the Supreme Court overturned in 2012. The justices ruled the law that criminalized lying about receiving military honors or decorations violated constitutional free speech rights.

Pennsylvania – Judge Strikes down Pa. Voter ID; High Court Challenge Likely

Philadelphia Inquirer; Associated Press –   | Published: 1/17/2014

A Pennsylvania judge has found the state’s voter ID law unconstitutional. According to the ruling from Commonwealth Court Judge Bernard McGinley, the requirement to present an acceptable form of identification when voting in person “unreasonably burdens the right to vote.” Enforcement of the law has been blocked by court orders pending resolution of the constitutional challenge. Both sides had vowed to appeal an unfavorable decision to the state Supreme Court.

Virginia – Bob McDonnell and Wife Indicted in Gift Scandal

Washington Post – Rosalind Helderman, Carol Leonnig, and Sari Horwitz | Published: 1/21/2014

Former Virginia Gov. Bob McDonnell and his wife, Maureen, were indicted on 14 counts of fraud, conspiracy, and obstructing federal investigators, stemming from a gift-giving scandal. McDonnell and his wife have acknowledged taking gifts from businessperson Jonnie Williams, including catering fees for the wedding of the McDonnells’ daughter. In exchange, authorities allege they worked in concert to lend the prestige of the governorship to Williams’ struggling company, which sells dietary supplements.

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.

Gov. Nathan Deal has signed into law a bill moving the state primary to May 20, 2014. House Bill 310 was passed to comply with a federal court order requiring at least 45 days between primary and general elections and subsequent runoffs to give overseas military personnel time to cast absentee ballots for federal candidates.

Primary runoffs will be held on July 22, while the general election remains on November 4.

The new law, effective upon signature, also restores the requirement to file a March 31 campaign finance report, previously removed by House Bill 143.

The gift policy for the Utah Office of Legislative Research and General Counsel has been updated. In the revised Policies and Procedures Manual, gifts having a value over $5 are prohibited. Some gifts are permitted within limited exceptions, including gifts not associated with the employee’s position or duties within the office. Additionally, the policy delineates what are permissible expenses for meals, tickets, reimbursements, and gifts when an employee attends a conference, seminar, training session, meeting, site visit, or other similar gathering connected with the employee’s employment.

Photo of the Utah State Capitol courtesy of Robert Cutts on Wikimedia Commons.

Lobbying

“Whose former staffers make the most as lobbyists? Lott, Frist, Hoyer top the list” by Lee Drutman and Alexander Furnas in the Sunlight Foundation Blog.

“Most Top Communication Groups Increase Lobbying” by Kent Cooper in Roll Call’s Political MoneyLine.

Alabama: “Alabama Legislature to take on two big issues on Thursday” by Max Reiss in WBRC News.

Connecticut: “Connecticut’s Big Spenders in Lobbying” by Joseph De Avila in The Wall Street Journal.

Campaign Finance

“Hillary Clinton foes file FEC complaint” by Byron Tau and Katie Glueck in Politico.

California: “Lobbyist charged in financing scheme” by Kristina Davis in The San Diego Union-Tribune.

Washington: “Senate Republicans want to alter makeup of state campaign finance regulator” by Brad Shannon in The Olympian.

Ethics

Louisville, Kentucky: “Senate panel votes to allow subpoena power for Louisville ethics commission” by Sebastian Kitchen in The Courier-Journal.

Virginia: “Experts: McDonnell’s corruption trial will test line between political favors, official action” by Carol D. Leonnig and Rosalind S. Helderman in The Washington Post.

Virginia: “Virginia Delegates Start Work on Ethics Legislation” on WVIR NBC News.

Redistricting

Illinois: “Group pushes for redistricting reform” by T.J. Fowler in The Southern Illinoisan.

Indiana: “House sends redistricting bill to Senate” by Erika Brock in The Reporter-Times.

Lobbying

“Nightmare on K St. — the 2013 sequel” by Kevin Bogardus and Megan R. Wilson in The Hill.

“K Street mines for gold in Silicon Valley” by Megan R. Wilson in The Hill.

“Lobbying World” in The Hill.

“National Assn. of Realtorsʹ Lobbying Jumps 53%” by Kent Cooper in Roll Call’s Political MoneyLine.

Iowa: “Public sector spending on lobbying Iowa state government up” by B.A. Morelli in The Gazette.

Campaign Finance

California: “2 Charged for Illegal Campaign Contributions in San Diego Mayor’s Race” by Candice Nguyen in NBC 7 San Diego News.

Maine: “‘Clean electionsʹ advocates push for 2015 referendum” by David Carkhuff in the Portland Daily Sun.

New Mexico: “Courts limit reach of NM campaign finance law” by Thomas J. Cole in the Albuquerque Journal.

New York: “Cuomo takes a first step toward campaign finance reform” by Jessica Alaimo in Capital New York.

Texas: “Texas ʹDark Moneyʹ debate rekindled” by David Rauf in the Houston Chronicle.

Ethics

Florida: “Local lawmaker’s bill could ease ethics-reporting requirements” by Andy Reid in the Sun Sentinel.

Virginia: “McDonnell, wife charged with corruption” by Rebecca Shabad and Cameron Joseph in The Hill.

Redistricting

Ohio: “Can Ohio erase partisan pencils?” by Chrissie Thompson in the Cincinnati Enquirer.

Open Government

West Virginia: “Ethics Commission works to rectify meeting violation” by Phil Kabler in the Charleston Gazette.

Lobbying

“Some Corporations and Associations Cut Lobbying Expenditures” by Kent Cooper in Roll Call.

“Top-Ranked Chamber of Commerce Increases Lobbying In 4th Quarter” by Kent Cooper in Roll Call.

“K Street pays top dollar for revolving door talent” by Lee Drutman and Alexander Furnas in the Sunlight Foundation Blog.

Campaign Finance

“The Consequences of ‘Citizens United’” by Ian Vandewalker in The Brennan Center for Justice Blog.

Maine: “Campaign watchdogs: Private groups will spend 80 percent more on Maine elections in 2014” by Mario Moretto in the Bangor Daily News.

New Mexico: “Report: PAC spending doubles after Citizens United” by Steve Terrell in the Santa Fe New Mexican.

Ethics

Washington: “Senate bill would shift control of Public Disclosure Commission to top legislators” by John Stark in The Bellingham Herald.

The State of Michigan Department of Technology, Management, and Budget –Procurement is holding a seminar on Contracting with the State of Michigan. It will be held January 23, 2014 from 2:00pm—4:30pm at Constitution Hall, 525 West Allegan Street, Lansing MI 48933.

Topics to be addressed include finding bid opportunities, where to register as a vendor, researching upcoming solicitations, common mistakes made when writing a proposal, rules and guidelines for state contracts, purchasing preferences, and bid solicitation structures.

Interested parties can register here.

By a vote of 6-1, the Bergen County Board of Freeholders introduced a resolution to reverse last year’s pay-to-play ordinance.

The resolution would lower the allowed campaign contribution from no-bid contractors from $5,200 to $2,000.

County Executive Kathleen Donovan vetoed last year’s limits but is said to support the latest introduced changes.

Lobbying

“Obama lobbying ban faces setback in court” by Andy Sullivan (Reuters) in the Chicago Tribune.

“Federal court orders rehearing on lobbying ban” by Byron Tau in Politico Influence.

“Congress and Lobbyists Are Going Downhill” by Kent Cooper in Roll Call’s Political MoneyLine.

Missouri: “Missouriʹs secretary of state proposes his own lobbyist restriction plan” by Phil Brooks in the South County Mail.

West Virginia: “Statehouse beat: Lobbyist spending for 2013” by Phil Kabler in the Charleston Gazette.

Campaign Finance

California: “Two groups that used secret political donations haven’t paid penalties” by Chris Megerian in the Los Angeles Times.

Louisiana: “Ethics board limits Vitter fundraising” by Marha Shuler in The Advocate.

Massachusetts: “Candidates cough up campaign costs” by Erin Smith in the Boston Herald.

New York: “Cuomo’s Budget Is Said to Include Ethics and Campaign Finance Reforms” by Thomas Kaplan in The New York Times.

New York: “205 campaign finance reports not posted because of errors” by Jessica Alaimo in Capital New York.

Rhode Island: “RI Board of Elections fines NRA for campaign law violation” by Philip Marcelo in the Providence Journal.

Utah: “Utah Senator Calling For Campaign Finance Reform” by Christine L. McCarthy in KUTV News.

Ethics

California: “Senate ethics chief calls allegations against Sen. Calderon troubling” by Patrick McGreevy in the Los Angeles Times.

Kentucky: “Legislative Research Commission pay to join larger ethics push” by Kevin Wheatley in The State Journal.

Massachusetts: “Mass. panel OKs new conflict of interest rule” by The Associated Press in The Boston Globe.

Virginia: “Gilbert introduces ethics reform bill” by Joe Beck in The Northern Virginia Daily.

Congress

“Welcome Back, Congress” from Roll Call.

From the State Legislatures

“Introducing ʹGetting Thereʹ: NCSL’s new mobility newsletter” by NCSL.

Government Tech and Social Media

Kansas: “Bill would put legislative committee meetings a mouse click away” by Scott Rothschild in the Lawrence Journal-World.

Ten Missouri residents filed suit in early January asking a judge to compel Gov. Jay Nixon to call special elections to fill vacant legislative seats. The governor is granted constitutional authority to do so and is required to issue a writ of election without delay.

Perhaps most problematic are the political ramifications of the Democratic governor’s refusal to act. With the vacancies, House Republicans sit just one vote shy of the two-thirds majority needed to override gubernatorial vetoes.

Plaintiffs contend constituents living in the affected districts are being deprived of a representative voice. Nevertheless, Nixon has yet to definitively set special election dates. If he wants the elections to coincide with the April 8 municipal elections, he needs to issue election proclamations by January 17.

Photo of Gov. Jay Nixon courtesy of Bernard Pollack on Wikimedia Commons.

Missouri legislators made ethics a top priority at the start of their legislative session. The Legislature convened on January 8 and members filed at least 10 bills addressing issues such as lobbyist registration, gifts to public officials, campaign contribution limits, and revolving door provisions.

Although Missouri is one of few states placing no restrictions on campaign donations or lobbyist gifts, reform appears to be of bipartisan concern. Secretary of State Jason Kander announced the most comprehensive approach to ethics reform with HB1340, introduced by Rep. Kevin McManus. The proposal establishes contribution limits, closes the revolving door for legislative officials, and establishes a lobbyist gift ban.

Kander’s proposal is unique in that it also adds mandatory registration requirements for paid political consultants as well as whistle-blower incentives. Those who provide information about ethics violations could receive 10 percent of the fines collected for the violation they revealed.

The Legislature discounted opportunities in the past to address ethics reform. With momentum building, many are hoping this is the year for change.

Join us on Monday, February 3, and engage with our experts to see if you can safely say, “I comply!”

PAC Grassroots is just 2 weeks away, and we would like to invite you to State and Federal Communications’ Pre-Conference Luncheon. The details are in the video and you may RSVP directly to the email found below. The luncheon runs from 11:30 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.

We can’t wait to see you!

Melissa Coultas

Manager, Sales and Marketing

mcoultas@stateandfed.com

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