The Hawaii State Ethics Commission issued an advisory last week urging public school employees to refrain from promoting charitable fundraisers at school.

The advisory was issued after Department of Education teachers and administrators were asked to support and encourage students to participate in a popular holiday fundraising campaign for the Make-A-Wish Foundation.

The state ethics code prohibits state employees from using work time and state resources for non-state related business purposes, which generally include supporting or promoting private charities.

Honolulu Mayor Kirk Caldwell’s administration is currently at odds with the City Ethics Commission. Earlier in the year the Commission inquired as to whether the Department of the Corporation Counsel has the power and duty to advise city employees on matters of ethics.

In a memorandum to all municipal agencies, the Department announced it does have said authority; the Ethics Commission disagrees.

The administrative decision may potentially result in city attorneys and Ethics Commission attorneys offering conflicting advice. Also problematic, the Ethics Commission is insulated from retaliation as an autonomous agency, whereas city attorneys are afforded no such protection.

If nothing else, the memo is likely to cause public confusion as the relationship between administration and Commission deteriorates. Subpoenas may be on the horizon for Mayor Caldwell’s top executives as the Ethics Commission investigates possible corruption in city hall.

State school board member Bryan Williams resigned after allegedly violating provisions of the state ethics laws by lobbying the government for private interests. The law prohibits an elected member of a state board or commission from receiving compensation for services he or she performs personally on a matter before any state agency.

When first appointed to fill a vacant seat, an exemption in state law allowed Williams to simultaneously serve in a public position while advocating as a lobbyist. Upon his election in 2012, however, the exemption no longer applied. The Ohio Ethics Commission has not confirmed any investigation or future legal actions.

On December 6, the Missouri General Assembly adjourned its first special session sine die.

The legislative body convened earlier in the week to prepare an aerospace industry incentive bill.

Effective immediately, Senate Bill 1 is designed to encourage growth and expansion of the aerospace industry and serves as an incentive proposal for Boeing to build its new commercial 777X airplane within the state.

Photo of the Missouri State Capitol courtesy of RebelAt on Wikimedia Commons.

State Rep. Mike Reynolds filed hundreds of ethics complaints with the Oklahoma Ethics Commission. The complaints, filed against candidates and legislators, call attention to what he believes is a lack of enforcement.

Most of the violations involved late filings of campaign contribution and expenditure reports. Reynolds reports he spent three weeks, using computer programs he developed, to analyze Ethics Commission data. Lee Slater, the Oklahoma Ethics Commission’s new executive director, declined to comment on the complaints. –

The Michigan Legislature is considering a bill to amend existing campaign finance law.

The bill would require those making independent expenditures for a candidate or ballot question within 60 days of an election where that candidate or ballot question is on the ballot to file an electronic report with the secretary of state within seven days of making such expenditure.

Failure to file such a report would result in a late filing fee equal to the lesser of the total amount of the independent expenditure or $2,000.

The Delaware Department of Elections has begun construction on a new campaign finance reporting system, which will debut on December 17.

The new system will allow all contribution reports, both those filed online and via paper submission, to be searched with one system. It will allow the public to track all contributions by one donor, an action taking more than 40 hours using the current online system.

The system upgrade does not affect filing or reporting requirements.

State and Federal Communications is the proud sponsor of the closing session at the Professional Women in Advocacy Conference on December 10, 2013. The event, which is designed for people engaged in all forms of advocacy, will be held in Washington, D.C. from December 9-10, 2013.

According to the organization’s website: “To give us a strong close to our conference and leave participants with plenty of food for thought, State & Federal Communications will present a session called “Been There Done That.”  This discussion features Moderator Sam Bennett, President of the Women’s Campaign Fund, Former U.S. Senator Blanche Lincoln and Former U.S. Representative Mary Bono. These accomplished women will discuss their path to leadership and their post public office success in the world of advocacy.  Tuesday, December 10th at 2:15pm.”

We are also excited to have another strong presence at this exciting conference. Federal Compliance Associate Rebecca South and Marketing Manager Melissa Coultas will be attending. Rebecca South will also be offering the presentation “Mentor Center: Public Speaking” on Tuesday, December 10.

City Council President Herb Wesson abandoned a plan to increase the value of gifts lawmakers can accept from companies seeking city contracts, opting to leave the amount unchanged at $100.

In October, City Council instructed the city’s lawyers to draft an ordinance increasing the gift limit to $150, despite a recommendation by the Ethics Commission to prohibit most gifts of any value.

The city’s ethics law will continue to bar lobbyists from giving gifts to elected officials and other high-level decision makers.

Those who do not have business before the city will continue to be permitted to give gifts to elected officials within the state limit of $440 per year. –

State and Federal Communications has a team of eight leaving tomorrow to attend the 2013 Council on Government Ethics Laws (COGEL) Annual Conference! It will be held from December 8-11 in Quebec City.

We never miss a COGEL conference, and this one should prove to be exciting. It will be good to see many familiar faces.

Here is what the COGEL website says about this year’s event:

This year’s conference brings us to the majestic Le Chateau Frontenac, a National Historic Site of Canada. This picture-perfect hotel is nestled in Old Quebec City, an enchanting destination that will be decked out for the holidays in December. Quebec City itself is a UNESCO Heritage Site and its cobble-stoned streets will lead you to charming neighborhood bistros, quaint shops and delicious bakeries. You will be steps away from historical attractions, shopping and plenty of attractions for you and your family.

Whether you are a first-time attendee or a veteran, engaging and informative sessions await you, all directly related to your work. You will learn about the latest legal developments, share important tips and best practices with COGEL partners and capture new ideas to take back to your office.

The photo of Le Chateau Frontenac courtesy of AirBete on Wikimedia Commons.

Q. Our company, a federal registrant, is a member of numerous outside organizations.  We join many of these organizations for reasons other than their lobbying/government relations activities.  Even so, some of the organizations allocate a percentage of dues toward lobbying activities.  If we are not actively engaged in supporting the organization’s lobbying efforts, do we still need to include the lobbying allocation in our good faith estimate of lobbying expenditures.

A. Yes. The disclosure requirement in this regard is not dependent on the rationale behind why a registrant joins any given membership organization.  The reporting mandate requires every registrant to track and ascertain what portion, if any, of all dues it pays is used for lobbying activities.  The registrant is then required to include those allocations in their total lobbying expenses reported.

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.

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

December 3, 2013   Weatherhead 100, Cleveland, Ohio

December 3, 2013   State and Federal Communications, Inc. Holiday Party, Akron, Ohio

December 3, 2013   Ohio Holiday Party, Washington, D.C.

December 4, 2013   NCSL Foundation Dinner, Washington, D.C.

December 4-7, 2013   NCSL Fall Forum, Washington, D.C.

December 5, 2013   Reception honoring Sen. Debbie Smith, NCSL President-elect

December 8-10, 2013  Council on Government Ethics Laws Annual Conference, Quebec City, Quebec

December 12, 2013   SGAC Holiday Party, Washington, D.C.

December 12, 2013   DDC Holiday Party, Washington, D.C.

December 17, 2013   WASRG Holiday Happy Hour for the Kids, Washington, D.C.

January 12-16, 2014   Public Affairs Institute, Laguna Beach, California

January 22-24, 2014   United States Conference of Mayors 2014 Winter Meeting, Washington, D.C.

National:

ALEC Facing Funding Crisis from Donor Exodus in Wake of Trayvon Martin Row

The Guardian – Ed Pilkington and Suzanne Goldenberg | Published: 12/3/2013

A conservative group that critics say has undue influence on public policy faces a funding crisis and possible legal trouble, show internal documents. The documents indicate the American Legislative Exchange Council is appealing to major donors for help in averting a financial crisis, and is establishing a new project with a different name to help remove “questions of ethical violations made by our critics and state ethics boards,” reported The Guardian.

State Supreme Court Judges Reveal Scant Financial Information

The Center for Public Integrity – Reity O’Brien, Kytja Weir, and Chris Young | Published: 12/4/2013

All 50 states and the District of Columbia have more lax financial disclosure rules for their high court justices than the disclosure requirements for federal judges, according to an analysis by the Center for Public Integrity. Some states do not require any disclosure of gifts to judges; others have limits but with loopholes. The center cited Iowa, which allows these judges to receive gifts worth any amount for their wedding or for their 25th and 50th wedding anniversaries.

Federal:

Capitol Metrics Bridges Lobbying and Data

Washington Post – Catherine Ho | Published: 12/1/2013

There were not many data-driven resources for lobbyists to research their competitors or potential merger partners. Then John Brain got the idea to create Capitol Metrics. It compiles lists of the top lobby firms by revenue, as well as the companies and associations that are spending the most on lobbying. Capitol Metrics also breaks down some of the data and packages it in a way that a lobbyist can better spot opportunities to pick up new business.

SEC Backs Off Corporate Giving Regs

The Hill – Ben Goad | Published: 12/2/2013

The Securities and Exchange Commission dropped a proposal to require publicly traded firms to disclose campaign spending to their shareholders from its list of regulatory priorities, a potential setback for watchdogs looking for ways to force some of the anonymous money in elections into public view. The issue drew more than 650,000 written comments, along with rebukes from trade groups, which argued the push was intended to silence of voice of business in politics.

From the States and Municipalities:

Arizona – Donation Cap for Political Campaigns Still in Place, for Now

East Valley Tribune – Howard Fischer (Capitol Media Services) | Published: 11/26/2013

The Arizona Supreme Court rejected a bid by top Republican lawmakers to allow campaign donors to give more while the justices review the legality of the increase. The justices agreed to give the GOP interests a chance to convince them the Court of Appeals erred in ruling the Legislature acted unconstitutionally earlier this year in approving the sharp increase. A hearing is set for December 17.

District of Columbia – Council Unanimously Approves Campaign Finance Reform Legislation

DCist.com – Matt Cohen and Sarah Anne Hughes | Published: 12/4/2013

The District of Columbia Council unanimously passed a campaign finance reform bill recently. The legislation will restrict contributions from related businesses and require campaigns to report all fundraising data online. The bill also limits money order donations to $100. Lobbyists will have to disclose any contributions bundled and forwarded to a campaign.

Louisiana – Super PAC Backing Sen. David Vitter Says State Has No Choice, Must Lift $100,000 Contribution Limit

New Orleans Times Picayune – Bruce Alpert | Published: 12/4/2013

The Fund for Louisiana’s Future, the super PAC created to support U.S. Sen. David Vitter, wants to end enforcement of the state’s $100,000 limit on independent committee donations. The U.S. Supreme Court’s 2010 ruling that equated spending on independent political expenditures with free speech, and a follow-up decision by a federal appeals court, makes it clear that such limits are unconstitutional, say lawyers for the PAC. Groups favoring limits on campaign spending do not necessarily disagree.

Minnesota – ‘Free Lunches’ Back on Menu for Minnesota Legislators

Minneapolis Star Tribune – Abby Simons | Published: 12/3/2013

For the first time in 19 years, Minnesota lawmakers and their staff will be allowed to eat and drink for free at receptions hosted by special interest groups, as long as all 201 legislators are invited at least five days in advance. Backers of the new law say the easing of what once was one of the strictest gift bans in the nation was needed as a way to restore camaraderie in an increasingly polarized Legislature. The law still prohibits lawmakers from accepting gifts in more exclusive gatherings.

Missouri – Prefiled Bills Suggest Ethics Reform on Agenda

Springfield News-Leader – Jonathan Shorman | Published: 12/4/2013

Eight ethics reform bills have been filed in the Missouri Senate by members of both parties. Senate Bill 486 would cap the amounts any one donor may give to a candidate: $25,000 for gubernatorial and statewide candidates, $10,000 for senators, and $2,500 for representatives and other public offices. Senate Bill 512 requires lawmakers to reimburse lobbyists for expenses within 30 days.

Nevada – Nevada Supreme Court Upholds Ethics Laws

San Francisco Chronicle – Sandra Chereb (Associated Press) | Published: 11/27/2013

The Nevada Supreme Court upheld the state Ethics Commission’s censure of a former Sparks City Council member who voted for a casino project even though his campaign manager was a consultant on the project. The decision reversed an earlier high court opinion that found the ethics law prohibited Councilperson Michael Carrigan from exercising his First Amendment rights to free speech.

New Mexico – New Mexico’s ‘Revolving Door’

Albuquerque Journal – Dan Boyd | Published: 11/29/2013

New Mexico lawmakers are free to resign one day and start lobbying the next. A recent report by a watchdog group identified 26 former legislators who work as lobbyists. Critics say the “revolving-door” practice erodes public trust in government by allowing former lawmakers to cash in on their expertise and connections with former colleagues.

New York – Report: Reform can’t wait

Albany Times Union – Casey Seiler | Published: 12/2/2013

A state commission investigating public corruption in New York recommended a system of public financing for state elections, an independent election-law enforcement agency, and stricter disclosure policies for legislators, saying a “permissive culture of both illegal and legal corruption” must change. Gov. Andrew Cuomo is expected to use the panel’s suggestions as the basis for a series of ethics law changes in 2014.

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.

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