October 23, 2013 •
Wednesday Government Relations News
Here is our roundup of the latest articles on lobbying, campaign finance, ethics, and more!
Lobbying
“Lobbying World” in The Hill.
Campaign Finance
District of Columbia: “Campaign finance reform will get D.C. Council vote next month” by Mike DeBonis in The Washington Post.
Kentucky: “Outside groups spend millions to sway Ky. senate race” by Joseph Gerth in The Courier-Journal.
Ethics
Georgia: “State auditor to investigate Deal, ethics commission” by Christina A. Cassidy in the Athens Banner-Herald.
Elections
Washington: “Washington state special election could decide party control” by Reid Wilson in The Washington Post.
Tech and Social Media
“Now You Can Petition Some Members of Congress Directly” by Joseph Marks in Nextgov.
“Farewell to The Thicket” by Karl Kurtz in NCSL’s The Thicket. The Thicket will be absorbed by the NCSL blog found here.
October 23, 2013 •
Riverside County, CA Amends Campaign Disclosure Laws
Electronic filing expanded
The Board of Supervisors has amended campaign finance regulations to require candidates and committees to electronically disclose all contributions of $1,000 or more, whether made during or outside the 90-day election cycle. Effective January 1, 2014, a candidate or political action committee must electronically post details of a contribution within 10 days if the amount meets or exceeds the $1,000 threshold outside an election cycle.
Currently, only contributions of $5,000 or more need to be posted electronically if made outside an election cycle. Contributions of $1,000 or more made during an election cycle will continue to be filed electronically within 24 hours.
The ordinance is expected to comply with Assembly Bill 2452, a new state law allowing local governing bodies to require electronic disclosure for contributions, so long as the locality complies with state regulations.
October 23, 2013 •
We Are Launching a New StateandFed.com
Arrives November 1st!
State and Federal Communications is proud to announce that we are unveiling our new website StateandFed.com on November 1st. Clients and visitors to the site will enjoy the same unrivaled compliance expertise but with a brand new web experience.
Features of the new StateandFed.com include a personalized homepage, new bookmarking abilities, mobile optimization, and a new integration of the Compliance Now Newsletter, News You Can Use, Lobby Comply Blog, and all of our social media.
Remember, the new StateandFed.com arrives on Friday, November 1st. You’ll be hearing much more about it soon!
October 23, 2013 •
Ask the Experts – Lobbyists, Legislators, and Gift Laws
Here is your chance to “Ask the Experts” at State and Federal Communications, Inc.
Q. I am a registered lobbyist with a personal relationship with a state legislator. I would like to give her a gift for a special occasion. Is this permissible?
A. As a registered lobbyist, you should always be aware of the restrictions placed on you for providing things of value to a state official. A number of jurisdictions have strict “no gift” laws in place. Wisconsin prohibits a lobbyist from providing things of pecuniary value to a legislator with very limited exceptions.
A gift can be permissible based on the personal relationship between the lobbyist and the legislator. Texas and Florida allow gifts between a registered lobbyist and a legislator if they are related to a certain degree. Please note that jurisdictions can examine the circumstances of the gift such as the extent of the relationship between the lobbyist and the legislator. The lack of a history of gift giving between the parties or evidence of a personal relationship may render the gift impermissible. The federal “friendship” exception also does not apply to state and local jurisdictions.
A registered lobbyist may be allowed to give a gift based on the special occasion or reasoning behind it. In Massachusetts, a lobbyist may give a legislator gifts on certain occasions of religious or personal significance. Connecticut allows gifts for certain major life events. Be sure to confirm if any occasions are excluded. Massachusetts does not consider a birthday to be an occasion of personal significance!
A gift may not be prohibited even if you are a registered lobbyist. Confirm whether an intended gift is permissible with your state’s ethics office.
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.
October 22, 2013 •
State Bar of Michigan Questions Funding of Judicial Campaigns
Anonymous funding gives perception of judicial bias, State Bar says
The State Bar of Michigan has requested a declaratory ruling from the Michigan Secretary of State regarding the current interpretation of the state’s Campaign Finance Act as it relates to judicial campaign contributions.
Under the current interpretation of the law, issue advocacy advertisements are not considered expenditures, and thus are not required to be reported. This allows the funding sources of the majority of judicial campaign advertisements to remain anonymous.
The State Bar of Michigan argues that such anonymous funding gives a perception of judicial bias in the state. The Secretary of State must issue a declaratory ruling within 60 days of receipt of the request. Stay tuned!
October 22, 2013 •
Tuesday Lobbying and Campaign Finance News Update
Keep up with the latest government relations news with these articles:
Lobbying
“There’s no sunrise yet on K Street” by Kevin Bogardus and Megan R. Wilson in The Hill.
“The state of K Street: Flat” by Byron Tau in Politico Influence.
“Major oil group boosts lobbying” by Ben Geman in The Hill.
“Facebook Lobbyist to Head Up Cory Booker’s Senate Staff” by Andrew Ramonas in the Blog of the Legal Times.
Campaign Finance
Arizona: “Horne denies campaign finance wrongdoing” by Howard Fischer in the Arizona Daily Star.
Montana: “Appeal filed over documents tied to dark money” by The Associated Press in the Billings Gazette.
Ethics
Georgia: “Ethics commission chair: Board close to finalizing plan for outside investigation” by Christina A. Cassidy (Associated Press) in The Republic.
Elections
“More female governors expected after 2014” by Emily Schultheis in Politico.
Redistricting
Alaska: “Alaska Redistricting Board to meet” by The Associated Press in the Anchorage Daily News.
October 22, 2013 •
Philadelphia Board of Ethics Proposes Gift Limits
Ethics watchdogs say limits are too low
The city Board of Ethics has proposed new gift regulations designed to clarify what is and is not permitted under the city code. The proposed limits would allow city officers and employees to accept gifts of up to $200 per year from a single source, including cash gifts up to $50. Currently, only gifts of substantial economic value given with the expectation of influencing the public official or employee are prohibited.
City watchdogs have criticized the proposed limits as being too lenient, but ethics board member Sanjuanita Gonzales suggested those limits could be subject to change after public input.
A hearing on the proposed regulations is scheduled for November 20.
October 21, 2013 •
GOP Chooses Candidate for Iowa SD 13 Special Election
Election scheduled for Nov. 19
Delegates from the Republican party have selected State Representative Julian Garrett to run in the special election for Iowa Senate District 13, which takes place November 19.
The special election will fill the seat vacated earlier this month by Kent Sorenson.
The Democrats will select their candidate Monday. Regardless of the outcome of this special election, the Democrats will retain control of the Iowa Senate.
October 21, 2013 •
Pepsi, Others Join Battle Over Initiative 522
Labeling of genetically-modified foods proves controversial
Initiative 522, which would require labeling on genetically modified foods in Washington state, has drawn negative attention from many of the nation’s largest and most recognizable food manufacturers, including Pepsi, Coca-Cola, and Nestle.
Pepsi is the biggest contributor to the effort to oppose the initiative, with its contributions accounting for $1.6 million of the $7.2 million total contributions collected to date.
Voters will decide the issue on November 5, with the election marking one of the most expensive initiative battles in the history of Washington state.
October 21, 2013 •
Honolulu Ethics Commission Seeks to Avoid Future Pay-to-Play Concerns
New Gift Law Provisions Created
Honolulu Mayor Caldwell and his transitional team came under the review of the city Ethics Commission recently for potential violations of gift law. The Commission found no violations due to a lack of established ethical guidelines but placed restrictions on future donations for inaugural or transitional purposes.
Safeguards put in place to avoid pay-to-play concerns include mandatory public disclosure of all donations, including the amount of and use for each, prohibition against asking current or prospective city officers or employees to solicit or make contributions, and requiring each donor/contributor to confirm he or she is not a registered lobbyist and has no future business with the city in which the administration is likely to be involved.
The Commission further held donations used to support legitimate government purposes, such as the transition between administrations and the official inaugural ceremony, are gifts to the city.
October 21, 2013 •
Monday News Roundup
Let’s start off the week with these lobbying, campaign finance, and ethics news articles:
Lobbying
“Lobbying bonanza as US firms try to influence EU” by Eric Lipton and Danny Hakim on CNBC News.
“Clustering Near the Seat of Power” in The New York Times.
“Lobbyists Ready for a New Fight on U.S. Spending” by Eric Lipton in The New York Times.
“Cassidy lobby shop goes social” by Catherine Ho in The Washington Post.
Maine: “New lobbying group to represent owners of Maine franchises” by Jessica Hall in the Kennebec Journal.
Tennessee: “Ingram filings call him Haslam campaign consultant” by Andy Sher in the Times Free Press.
Campaign Finance
“Get Over It: Campaign Finance Limits Don’t Work” by James Oliphant in National Journal.
“Washington’s open secret: Profitable PACs” by Steve Kroft on CBS News’ 60 Minutes.
“Pepsi, Coke, Nestle among brands donating to effort vs. labeling genetically modified foods” by Mike Baker (Associated Press) in The Republic.
Montana: “Bullock campaign violated campaign finance law” by Manee Banks in KXLH News.
Texas: “Court Nixes Texas Ban on Corporate PAC Donations” by Jack Bouboushian in the Courthouse News Service.
Ethics
Alabama: “Alabama considers creating election commission” by Phillip Rawls (Associated Press) in the Seattle Post-Intelligencer.
Hawaii: “Ethics Probe into Honolulu Mayor Sparks Talk of Reform” by Nick Grube in the Honolulu Civil Beat.
“Texas: APNewsBreak: Patrick PAC paid his radio station” by Will Weissert (Associated Press) in the Miami Herald.
Redistricting
Arizona: “Arizona redistricting panel running out of money” by The Associated Press in KSAZ TV News.
Tech and Social Media
“Legislative panel to take up Facebook access” by The Associated Press in the Juneau Empire.
October 21, 2013 •
Santa Clara County Seeks Lobbying Ordinance
San Jose may serve as a model

The Santa Clara County Board of Supervisors unanimously passed a referral to request a draft lobbying ordinance in order to improve transparency and accountability in county procurements. County Counsel, Orry Korb, is tasked with reviewing existing lobbying regulations in other localities for drafting purposes. The referral specifically mentions San Jose’s lobbying ordinance as one with a proven track record and able to provide much of the necessary framework and language.
A presentation and consideration of a draft lobbying ordinance will be presented to the Finance and Government Operations Committee before a final version is brought to the full board in December, 2013.
Photo of the Santa Clara Government Center courtesy of Coolcaesar in Wikimedia Commons.
October 18, 2013 •
Utah Legislature Adjourns One-Day Special Session
October 16
On October 16, the Utah Legislature adjourned its one-day special session sine die. The Legislature passed bills authorizing state funds to open and operate national parks, monuments, and recreation areas, to cover the benefits of certain unpaid furloughed employees, and to offset obligations caused by delays in federal funding to the Child Nutrition Program. Gov. Gary Herbert signed the bills Wednesday night.
October 18, 2013 •
News You Can Use Digest – October 18, 2013
Here are highlights from the latest edition of News You Can Use:
Federal:
Business Groups Stand by Boehner, Plot against Tea Party
Washington Post – Jia Lynn Yang and Tom Hamburger | Published: 10/17/2013
Rather than revisit their strategy of supporting Republicans after the stand-off that nearly drove the country to a debt default, influential organizations such as the U.S. Chamber of Commerce are standing behind U.S. House Speaker John Boehner. More importantly, Boehner’s friends in the business community are getting ready to take sides in a few GOP primary races against tea party candidates in Michigan, Idaho, and Alabama who could cause him more trouble.
Lobbyists’ Lobbying Group Wants a New Name – One That Doesn’t Mention Lobbying
Washington Post – Holly Yeager | Published: 10/15/2013
The board of directors for the American League of Lobbyists has made its choice for the organization’s new name: the Association of Government Relations Professionals. The group’s bylaws require two-thirds approval by its members before the name can be changed. There have been surveys and other research revealing a majority of members no longer identify themselves only as lobbyists.
From the States and Municipalities:
Arizona – Court Blocks New Arizona Campaign Finance Law; Opens Door for Candidates to Receive More Money
East Valley Tribune – Howard Fischer (Capitol Media Services) | Published: 10/15/2013
The Arizona Court of Appeals issued a preliminary injunction against the state’s higher campaign contribution limits. The order directs Secretary of State Ken Bennett not to enforce the law. The ruling makes it likely the state will turn to the Arizona Supreme Court to review the case.
Arizona – Ex-Phoenix Lobbyist Indicted over Contributions
San Francisco Chronicle; Associated Press – | Published: 10/10/2013
Gary Husk, a once influential lobbyist in Phoenix whose key clients included the Fiesta Bowl, has been charged with eight felonies for using his firm’s money to reimburse staff after directing them to make specific campaign contributions. The donations went to high-profile politicians with whom Husk sought access and influence, including Arizona Gov. Jan Brewer.
California – Bob Filner, Former San Diego Mayor, Pleads Guilty to Criminal Charges
New York Times – Rob Davis and Adam Nagourney | Published: 10/15/2013
Former San Diego Mayor Bob Filner pleaded guilty to three criminal counts related to the sexual harassment allegations that drove him from office after a summer of scandal. Filner pleaded guilty to one criminal count of false imprisonment by violence, fraud, menace, and deceit, and two misdemeanor counts of battery. Sentencing was set for December 9, and documents indicate he will get three years of probation and no prison time.
Colorado – Colo. Pot Advocates File Unusual Campaign Finance Report
CBS News; Associated Press – | Published: 10/17/2013
No Over Taxation, a group that had distributed free marijuana cigarettes at a rally opposing possible new taxes in Colorado, filed a disclosure report saying the joints were worth $1,250, and were paid for by a lawyer funding its campaign. Colorado Ethics Watch had filed a complaint alleging the marijuana was an in-kind campaign contribution and the anti-tax group had failed to initially report it.
Georgia – FBI Contacts Attorney in Ethics Case
Augusta Chronicle – Christina Cassidy (Associated Press) | Published: 10/10/2013
FBI agents have questioned Georgia ethics commission attorney Elisabeth Murray-Obertein, who raised concerns about the panel’s investigation into Gov. Nathan Deal. Murray-Obertein is a key figure in the allegations lodged in a pair of whistle-blower lawsuits accusing commission Executive Secretary Holly LaBerge of bragging about her relationship with Deal and saying he “owed her” after the agency dismissed the most serious campaign finance complaints raised in its investigation of the governor.
Hawaii – Circuit Hears Hawaii Campaign Finance Case
Courthouse News Service – Tim Hull | Published: 10/14/2013
A-1 A-Lectrician, Inc. sued the Hawaii Campaign Spending Commission in 2010, arguing the state’s non-candidate committee donation caps, advertising definition, disclaimer requirements, and ban on government contractors donating to candidates were all unconstitutional. The case is now before a panel of the Ninth U.S. Circuit Court of Appeals, which hinted it may delay a ruling until the U.S. Supreme Court decides a similar case.
Michigan – Bobby Ferguson Sentenced to Serve 21 Years in Federal Prison for Corruption
Detroit Free Press – Jim Schaefer, Tammy Staples Battaglia, and Eric Lawrence | Published: 10/11/2013
Bobby Ferguson, the friend and favorite construction contractor of former Detroit Mayor Kwame Kilpatrick, was sentenced to 21 years in federal prison. Ferguson was convicted of nine felonies, including racketeering and bribery. He was accused of illegally securing $70 million in city contracts through his friendship with the ex-mayor, who was sentenced to 28 years in prison for his role in the extortion and racketeering scheme.
Montana – State of Montana Slaps Conservative ‘Dark Money’ Groups for Campaign Violations
The Missoulian – Mike Dennison | Published: 10/17/2013
Montana Commissioner of Political Practices Jonathan Motl said he found sufficient evidence to show Western Tradition Partnership violated state campaign finance law in a 2010 Republican House primary race. Motl found the “dark-money” group, now known as American Tradition Partnership, illegally coordinated campaign expenditures with candidate Dan Kennedy.
New York – Judge Rejects Bid by PAC to Raise Large Sums for Lhota
Wall Street Journal – Andrew Grossman | Published: 10/17/2013
U.S. District Court Judge Paul Crotty rejected a request by New York Progress and Protection PAC to overturn a state law that prohibits individuals from giving more than $150,000 each year to campaigns and political committees. Crotty said granting the injunction would be disruptive because it would come too close to the November 5 election.
Pennsylvania – Philly Ethics Board Proposal Allows $200 Limit on Gifts
Philadelphia Inquirer – Claudia Vargas | Published: 10/17/2013
The Philadelphia Board of Ethics has drafted a list of regulations that are supposed to better explain what is allowed under the current code for “gifts, loans, and favors to city personnel.” For example, the proposal would allow city officers and employees to accept gifts of up to $200 in value per year from any single source. A hearing on the proposed regulations is scheduled for November 20.
Virginia – Star Scientific Chief Thought McDonnell Was Helping Firm Get State Funding
Washington Post – Rosalind Helderman and Carol Leoning | Published: 10/11/2013
Star Scientific Chief Executive Officer Jonnie Williams Sr. has told federal investigators he believed Virginia Gov. Robert McDonnell was helping his company get funding from the state’s tobacco commission at the same time that Williams was giving money and gifts to the governor and his family. Under federal law, it can be illegal for elected officials to agree to take official actions in exchange for gifts or money, even if they do not ultimately follow through on their promises or have the power to do so.
Washington – Washington State Sues Lobbyists over Campaign against GMO Labeling
Reuters – Carey Gillam | Published: 10/16/2013
The state of Washington filed a lawsuit alleging the Grocery Manufacturers Association illegally collected and spent more than $7 million while shielding the identity of its donors in an effort to oppose Ballot Initiative 522, which would require labeling of genetically modified foods. The attorney general’s office is asking the court to order the group to immediately comply with state disclosure laws. It also said it would seek civil penalties.
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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State and Federal Communications, Inc. provides research and consulting services for government relations professionals on lobbying laws, procurement lobbying laws, political contribution laws in the United States and Canada. Learn more by visiting stateandfed.com.