September 5, 2012 •
A Pay-to-Play Warning for Municipal Securities Firms
MSRB Rule G-37
An alert for municipal securities dealers concerning pay-to-play rules has been issued by a department of the Securities and Exchange Commission (SEC).
The SEC Office of Compliance Inspections and Examinations has released a National Examination Risk Alert summarizing observations and providing some guidance of pay-to-play compliance by firms engaged in municipal securities.
The alert identifies issues found “in the course of examinations regarding compliance by firms” subject to municipal securities pay-to-play prohibitions. Municipal Securities Rulemaking Board (MSRB) Rule G-37 prohibits certain political contributions for two years prior to engaging in a municipal securities business where a related official received contributions.
The alert details problems with recordkeeping, inaccurate filing of reports, and inadequate supervision by firms to ensure compliance with MSRB Rule G-37.
Additionally, the alert’s reporting staff “has observed facts that suggest that some firms may have engaged in municipal securities business with issuers within two years of their MFPs making [prohibited] contributions.”
The full report can be found at http://www.sec.gov/about/offices/ocie/riskalert-munipaytoplay.pdf.
September 4, 2012 •
Iowa Revises Rules on Campaign Donations from Trusts
Anonymous donations no longer allowed
The Iowa Ethics and Campaign Disclosure Board 
issued an advisory opinion clarifying the disclosure rules a trust must follow when making a political contribution.
If a trust raises or spends more than $750 for campaign activities, it will have to register with the ethics board as a political committee.
As a political committee, the trust will have to file periodic reports with the board and will also have to identify the name of the trust, the trustee, and the trustor.
The committee that receives the contribution will also to have to disclose the trust, trustee, and trustor on its disclosure report.
The opinion also restricts prohibited contributors, such as corporations, insurance companies, or banks, from giving money or anything of value to a trust that makes campaign contributions.
The advisory opinion was in response to a 2002 advisory opinion which incorrectly allowed trusts to anonymously give money to political committees for the past 10 years.
August 31, 2012 •
Our Green Thumb Before and After
Doing our part to Keep Akron Beautiful
As our intern Joanna Kamvouris wrote in June, State and Federal Communications adopted a planter on the sidewalk outside the office at the corner of Mill Street and South Union in downtown Akron. The project is part of a larger beautification effort throughout the city by two organizations – Keep Akron Beautiful and the Downtown Akron Partnership.
We send a big thank you to IT Assistant Ken Kelewae and his wife, who selected and arranged the plants. The amazing transformation is also thanks to IT Assistant David Jones, who helped in watering and attending to the plants all summer. We are rather proud of the results! Here are the “before and after” pictures:
August 31, 2012 •
News You Can Use Digest – August 31, 2012
Here are highlights from the latest edition of News You Can Use:
National:
Voters Still Tuned in to Traditional News Media, Poll Finds
Federal:
Four-Day Political Conventions Could Be a Thing of the Past
GOP Plank in 2012 Platform Wants to Leave Campaign Spending Alone
From the States and Municipalities:
California
California Lawmakers Say ‘No Gifts, Please’ But Accept Them Anyway
Colorado
Court Rules against Gessler in Campaign Change
District of Columbia
New D.C. Campaign Finance Reform Would Ban Lobbyist Bundling
Iowa
Trust Donation Rules Spelled Out
New York
Lawmaker-Lobby Guidelines Emerge
South Carolina
Former South Carolina Governor Confirms Engagement to Argentine Ex-Mistress
Texas
Court Blocks Texas Voter ID Law, Citing Racial Impact
Washington
Campaign Finance Watchdog: Churches can’t be intermediary for gay marriage referendum money
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.
August 31, 2012 •
Congratulations to the SGAC Professional Certificate Program Graduates!
What a great accomplishment!
We would like to take this opportunity offer our best wishes to the graduates of the inaugural class of SGAC’s State Government Affairs Professional Certificate Program.
State and Federal Communications had two people in the program. President and CEO Elizabeth Bartz and Client Specialist Myra Cottrill received their certificates at the SGAC Annual Business Meeting and Lunch on August 8.
According to SGAC, “The SGAC Professional Certificate Program requires the participants, of which there are more than 100 including the recent 25 honorees, to complete a minimum of 12 courses focusing on: Ethics/Ethical Leadership; Complying with State Lobbying Laws; Building and Managing Coalitions; Legislative Trends; Lobbying and the Legislative Process; Media and Communications Training; Understanding National State Government Organizations and others.”
Myra Cottrill said, “It is an honor to join 24 colleagues from across the country that completed the program’s rigorous requirements during the past three years.”
Ruling upholds lower court decision
The Colorado Court of Appeals affirmed a lower court’s decision that Secretary of State Scott Gessler overstepped his authority when he changed the financial disclosure threshold for issue committees to $5,000.
The previous threshold, established by constitutional amendment, required issue committees to register with the secretary of state and file financial disclosures if they accepted contributions or made expenditures of more than $200.
Secretary Gessler argued that the rule change was needed to clarify uncertainty in the law created by a federal appeals court ruling, but the court ruled that the change exceeded his rulemaking authority and voided the rule.
August 30, 2012 •
Campaign Finance and Ethics in the News
Keep up with the latest news with these campaign finance, ethics, and social media articles:
Campaign Finance
“Obama calls for constitutional amendment to overturn Citizens United” by Byron Tau in Politico.
New York: “Candidates who didn’t file financial disclosure listed here” by Rick Karlin in Capitol Confidential.
Ethics
South Carolina: “‘Unusual alliance’ calls for tougher state ethics laws” by Andrew Shain in The State.
Social Media
“Answers from Barack Obama’s ‘Ask Me Anything’ on Reddit” by Micah L. Sifry on TechPresident.
“Obama vows to fight for Internet freedom on Reddit” by Joseph Marks in NextGov.
“Welcome to Excellence in Government Online” by Bryan Klopack in Government Executive.
August 30, 2012 •
California’s San Bernardino County Sets Contribution Limits
$3,900 limit and $10,000 disclosure requirement begin in 2013.
The Board of Supervisors has adopted an ordinance limiting campaign contributions for all county elective office candidates, and increasing public disclosure requirements for independent expenditures.
The new ordinance limits contributions to $3,900 per election cycle from a single source, including corporations, special interest groups, and individuals. The ordinance also requires all county candidates and independent expenditure committees to electronically report contributions and expenditures exceeding $10,000.
The ordinance goes into effect January 1, 2013.
Seal of San Bernardino County courtesy of Jetijones on Wikipedia.
August 29, 2012 •
Wednesday Lobbying and Campaign Finance News
Also government ethics, redistricting, and social media
Lobbying
“The Art of Going Corporate at Political Conventions” by Diane Brady in Bloomberg Business Week.
“K Street preps for Hurricane Isaac” by Dave Levinthal in Politico.
“Lobbyists, businesses pamper New Jersey delegates with food, parties” by Melissa Hayes in The Record.
District of Columbia: “New D.C. Campaign Finance Reform Would Ban Lobbyist Bundling” in the Blog of the Legal Times.
New York: “Lawmaker-lobby guidelines emerge” by Rick Karlin in the Albany Times Union.
Ottawa, Canada: “New lobby registry looks easy as pie” by Joanne Chianello in the Ottawa Citizen.
Campaign Finance
California: “Unleashing the Campaign Contributions of Corporations” by Eduardo Porter in The New York Times.
Pennsylvania: “With money to burn, Fitzpatrick won’t limit spending” by Gary Weckselblatt in The Intelligencer.
Washington: “Churches can’t be intermediary for gay-marriage law donations, watchdog says” by Rachel La Corte (Associated Press) in The Olympian.
Ethics
Illinois: “Emanuel appointees propose more oversight on ethics” by Hal Dardick in the Chicago Tribune.
New York: “NY ethics board hires another Cuomo aide” by The Associated Press in the Utica Observer Dispatch.
New York: “Silver’s Sexual-Harassment Payout May Get New York Ethics Review” by Freeman Klopott in Bloomberg Business Week.
New York: “New York Can’t Escape Corruption as Senator Huntley Indicted” by Freeman Klopott and David McLaughlin (Bloomberg) in the San Francisco Chronicle.
North Carolina: “Dalton rolls out ethics package, term limits” by Travis Fain in the Greensboro News and Record.
Utah: “Utah cities, counties, guv preparing for new ethics commission law” by Cathy McKitrick in the Salt Lake Tribune.
Redistricting
Arizona: “Ariz. GOP: Redistricting commission’s existence illegal” by Howard Fischer in East Valley Tribune.
Texas: “Texas redistricting plan ruled illegal” by Gary Martin and Gary Scharrer in the San Antonio Express-News.
Social Media
“Ann Romney Was Most-Searched, Most-Tweeted Tuesday Night Speaker” by Alex Fitzpatrick in Mashable.
August 29, 2012 •
D.C. Mayor Proposes Campaign Finance Reform
Public comment to be open until September 17th
Mayor Vincent Gray and Attorney General Irvin Nathan have introduced a proposal for an overhaul of the city’s campaign finance laws. The proposal includes pay-to-pay provisions that will limit when contractors may contribute to public officials. It will also make electronic disclosure mandatory and increase the disclosures already in place. The proposal would also ban lobbyists from bundling political contributions.
These proposed reforms come at a time when the district has been inflicted with a rash of campaign scandals, including one involving Mayor Gray’s campaign.
The proposal will now go through a public comment period until September 17th. At that point, the proposal will be formally sent to the district council.
Photo of the John A. Wilson Building by Awiseman on Wikipedia.
August 28, 2012 •
Missouri Court Orders New Election for September 24th
Some primary voters in the 87th House District received the wrong ballot
A St. Louis County judge ordered a new election between state Representative Stacey Newman and Susan Carlson for the 87th House District. The new Democratic primary election is scheduled to be held on Monday, September 24, 2012.
Initial results of the August 7, 2012 primary showed Newman had won the election by a single vote, but the St. Louis County Board of Election found irregularities soon after the results were announced. The mistakes occurred at a polling place in Brentwood, where poll workers accidentally handed voters ballots with the 83rd District race between James Trout and Gina Mitten.
During the court hearing, it was revealed that 100 voters in the 83rd District received ballots to vote in the 87th District, while two 87th District residents received ballots for the 83rd District. Judge Michael Jamison cited Revised Missouri Statute section 115.593, which allows the court to order a new election if the evidence provided demonstrates irregularities were sufficient to cast doubt on the outcome of the election.
August 27, 2012 •
FEC Advisory Opinion Addresses “Expressly Advocating”
Not All Issues Resolved
The Federal Election Commission (FEC) issued an advisory opinion offering limited guidance on what type of solicitations for political contributions are permissible and what type of advertisements qualify as expressly advocating the election or defeat of a candidate.
In Advisory Opinion 2012-27, the FEC found two of four proposed donation requests permissible. The Commission also concluded three of seven proposed advertisements did not expressly advocate the election or defeat of a clearly identified federal candidate.
The remaining advertising and donation requests were not decided by the FEC because it lacked the required four affirmative votes for agreement.
August 27, 2012 •
Monday News Roundup
Here are the latest campaign finance, lobbying, and ethics articles to start your week:
Campaign Finance
Tennessee: “TN nears record for political donations” by Paul C. Barton in The Tennessean.
“Obama Outpaces Romney in Small-Dollar Donations” by Jonathan D. Salant in Bloomberg Business Week.
“Super PACs see GOP convention in Tampa as a fundraising opportunity” by Chris Moody in Yahoo News.
“Convention Contributions Down and More Discreet” by Janie Lorber in Roll Call.
“Romney ‘absolutely’ would return to public funding in ’16” by Darren Samuelsohn in Politico.
Lobbying
California: “20 California lawmakers accepted gifts despite ‘no-gift’ signs” by The Associated Press in the Mercury News.
New York: “Opponent hints McDonald is lobbyist” by Jimmy Vielkind in the Albany Times Union.
“The 10 Lobbying Firms That Rake In The Most Money” by Abby Rogers in Business Insider.
“Convention is not siren call for K Street firms” by Kevin Bogardus in The Hill.
Ethics
“N.Y Can’t Escape Corruption as Senator Says She’ll Be Arrested” by Freeman Klopott and David McLaughlin in Bloomberg News.
August 24, 2012 •
News You Can Use Digest – August 24, 2012
Here are highlights from the latest edition of News You Can Use:
Federal:
Skinny-Dipping in Israel Casts Unwanted Spotlight on Congressional Travel
Text ‘GIVE’ to Obama: President’s campaign launches cell phone donation drive
Twitter’s Role in the Upcoming Conventions
From the States and Municipalities:
California
Higher Lobbyist Fees Approved to Fix Campaign Finance Database
California
San Bernardino County: Contribution limits approved
Florida
Campaign Vendors Say Republican Congressman David Rivera Funded Democrat’s Failed Primary Bid
Illinois
Illinois House Expels Rep. Derrick Smith over Bribery Charge
Minnesota
Donor against Marriage Amendment Will Remain Unnamed
Missouri
Akin Says He’ll Stay in Senate Race, Heightening Tension within GOP
New Hampshire
Most Campaign Money Remains Hidden in New Hampshire
New York
Gifts End in $1.7 Million Deal
North Carolina
Despite Laws, NC Legislators Still Ask Lobbyists for Money
Oregon
Oregon Political Social Scene a Thing of the Past
Pennsylvania
Report Faults Ethics Board: Small staff and lack of authority cited
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.
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.
