May 6, 2019 •
Monday’s LobbyComply News Roundup
Campaign Finance Pennsylvania: “Dark Money Under Spotlight as Campaign Finance Law Changes Right Before Philly Primary” by Julia Terruso and Chris Brennan for Philadelphia Inquirer Elections National: “F.B.I. Sent Investigator Posing as Assistant to Meet with Trump Aide in 2016” […]
Campaign Finance
Pennsylvania: “Dark Money Under Spotlight as Campaign Finance Law Changes Right Before Philly Primary” by Julia Terruso and Chris Brennan for Philadelphia Inquirer
Elections
National: “F.B.I. Sent Investigator Posing as Assistant to Meet with Trump Aide in 2016” by Adam Goldman, Michael Schmidt, and Mark Mazzetti (New York Times) for MSN
Ethics
National: “Watergate Had the Nixon Tapes. Mueller Had Annie Donaldson’s Notes.” by Carol Leonnig (Washington Post) for MSN
Indiana: “Casino Company Turned to State Lawmaker for Title Work. He Voted for Massive Gaming Bill.” by Tony Cook and Kaitlin Lange for Indianapolis Star
Kentucky: “‘He Is a Whiny, Off-Topic Social Media Troll.’ Why Bevin Banned Critics on Social Media.” by John Cheves for Lexington Herald-Leader
Maryland: “Baltimore Mayor Pugh Resigns After Month on Leave Amid Investigation into Her Business Deals” by Ian Duncan, Jean Marbella, and Luke Broadwater (Baltimore Sun) for MSN
New Mexico: “Padilla Claims AG Concealed Recording Device in Coffeepot” by Dan Boyd for Albuquerque Journal
Legislative Issues
California: “How Powerful Lawmakers Are Killing California Bills – Without a Peep” by Laurel Rosenhall for CALmatters
May 3, 2019 •
News You Can Use Digest – May 3, 2019
National/Federal Acting Defense Secretary Cleared of Wrongdoing in Probe of His Ties to Boeing Washington Post – Dan Lamothe and Heather Ryan | Published: 4/24/2019 The Pentagon’s watchdog cleared Acting Secretary of Defense Patrick Shanahan of wrongdoing in an investigation examining whether he […]
National/Federal
Acting Defense Secretary Cleared of Wrongdoing in Probe of His Ties to Boeing
Washington Post – Dan Lamothe and Heather Ryan | Published: 4/24/2019
The Pentagon’s watchdog cleared Acting Secretary of Defense Patrick Shanahan of wrongdoing in an investigation examining whether he used his influence at the Defense Department to favor Boeing, his former employer. The results seemingly clear the way for President Trump to nominate Shanahan to take over as Pentagon chief. The probe was launched after the department’s inspector general received reports saying Shanahan had boosted Boeing in meetings, disparaged Boeing’s competitors, pressured Pentagon officials to buy Boeing products, and sought to influence the Air Force’s decision on accepting a Boeing aircraft after technical problems delayed its delivery.
As Buttigieg Builds His Campaign, Gay Donors Provide the Foundation
New York Times – Jeremy Peters and Shane Goldmacher | Published: 4/30/2019
After vaulting into the top tier of presidential candidates vying for the 2020 Democratic nomination, South Bend Mayor Pete Buttigieg is building a nationwide network of donors that is anchored by many wealthy and well-connected figures in LGBT political circles. Buttigieg’s candidacy has struck a powerful chord with many top LGBT donors. Though many said they believed they would see a gay man or lesbian become a serious contender for the White House, most of them had never considered it beyond the abstract. But the LGBT community is no monolith, and Buttigieg’s candidacy is exposing tensions that have been papered over during the period of relative unity and common purpose that has taken hold since President Trump took office.
Biden Faces Conflict of Interest Questions That Are Being Promoted by Trump and Allies
MSN – Kenneth Vogel and Iuliia Mendel (New York Times) | Published: 5/1/2019
Then-Vice President Joe Biden traveled to Kiev in March 2016 and threatened to withhold $1 billion in U.S. loan guarantees if Ukraine’s leaders did not dismiss the country’s top prosecutor, who had been accused of turning a blind eye to corruption in the country. The prosecutor general was soon voted out by Parliament. Among those who had a stake in the outcome was Hunter Biden, the younger son of the former vice president, who at the time was on the board of an energy company owned by a Ukrainian oligarch who had been in the sights of the fired prosecutor general. The broad outlines of how the roles of the father and son intersected have been known for some time. New details about Hunter Biden’s involvement have pushed the issue back into the spotlight just as the elder Biden is beginning his campaign for president.
Congressional Democrats’ Emoluments Lawsuit Targeting President Trump’s Private Business Can Proceed, Judge Says
MSN – Jonathan O’Connell, Ann Marimow, and Carol Leonnig (Washington Post) | Published: 4/30/2019
A federal judge ruled Democrats in Congress can move ahead with their lawsuit against President Trump alleging his private business violates the Constitution’s ban on gifts or payments from foreign governments. The decision by U.S. District Court Judge Emmet Sullivan adopted a broad definition of the anti-corruption law and could set the stage for Democratic lawmakers to begin seeking information from the Trump Organization. The Justice Department can try to delay or block the process by asking an appeals court to intervene. Sullivan refused the request of the president’s legal team to dismiss the case and rejected Trump’s narrow definition of emoluments, finding it “unpersuasive and inconsistent.”
In Its Fight to Keep Drug Prices High, Big Pharma Leans on Charities
Los Angeles Times – Ben Elgin (Bloomberg) | Published: 4/29/2019
Many self-styled patient-advocacy groups with murky origins or hidden funders have cropped up since 2017. With names like the Doctor-Patient Rights Project or the Defenders Coalition, such groups pursue various policy aims that include effectively aiding pharmaceutical companies’ efforts to defeat drug-price proposals. The nonprofits take public positions in newspaper op-eds and letters to Congress while drug makers, beset by years of negative publicity over price hikes, tend to remain in the background. The groups say they are independent. That is not true for all of them, said Marc Boutin, chief executive of the National Health Council, which has more than 50 patient groups and dozens of drug makers as members. “There are a number of groups created by pharma companies that look and act like patient organizations, but they’re 100 percent funded by industry,” said Boutin, who did not name any specific examples.
Maria Butina, Russian Who Conspired to Infiltrate Conservative U.S. Political Groups, Sentenced to 18 Months
Boston Globe – Spencer Hsu and Rosalind Helderman (Washington Post) | Published: 4/26/2019
A federal judge sentenced Russian gun rights activist Maria Butina to 18 months in prison Friday after calling her plot to penetrate conservative U.S. political circles without disclosing she was working as a foreign agent for the Kremlin “dangerous” and “a threat to our democracy.” Butina pleaded guilty to conspiring with a senior Russian official to access the National Rifle Association (NRA) and other groups without registering with the U.S. Justice Department from 2015 until she was arrested and detained in July. Butina admitted she worked under the direction of Alexander Torshin, a former Russian government official, and with an American political operative on a multiyear scheme to establish unofficial lines of communications with Americans who could influence U.S. politics.
‘No Corporate PAC’ Pledges Aren’t Always So Pure
Roll Call – Kate Ackley | Published: 4/29/2019
Many incumbents in the club of Democratic lawmakers who refuse corporate PAC dollars still accept donations from colleagues and party committees that take the funds. Numerous freshman Democrats who ran on a no-corporate-PAC-money mantra opened their re-election coffers to donations this year from party leaders and committees, such as the New Democrat Coalition Action Fund, that are full of funding from some of the nation’s best-known companies. Taking donations from party leaders and committees allows pledge-takers to stick to their vows while cleansing some of the “dirty” dollars and diluting the influence of the companies, but not banishing such money entirely.
Pete Buttigieg Swears Off the Lobbyist Money He Once Accepted
New York Times – Jeremy Peters and Shane Goldmacher | Published: 4/26/2019
Pete Buttigieg, whose upstart presidential campaign has benefited from an early surge of donations and national attention, will no longer accept contributions from federal lobbyists, bowing to pressure from fellow Democrats who want to reform the way campaigns raise money. Buttigieg, the mayor of South Bend, Indiana, was somewhat isolated among his rivals for the 2020 Democratic nomination because he initially accepted lobbyist money, putting him at odds with the more progressive wing of his party. He will return the contributions he had already accepted from lobbyists, which his campaign said totaled $30,250 from 39 individuals.
Trump Views the Supreme Court as an Ally, Sowing Doubt About Its Independence Among His Critics
MSN – Robert Barnes and Josh Dawsey (Washington Post) | Published: 4/27/2019
President Trump’s tweets demonstrate he views the U.S. Supreme Court as an ally, and safeguard against lower court defeats and congressional opponents. His administration’s lawyers have tried to leapfrog the legal process to seek the high court’s quick review of adverse rulings and nationwide injunctions by lower courts. They are also ready to go to court as the president resists demands from congressional Democrats investigating his conduct, business dealings, and personal finances. Critics of the president say his rhetoric seeds doubts about the Supreme Court’s independence, complicates the role of Chief Justice John Roberts Jr., and could taint the victories Trump achieves there.
When the Mueller Investigation Ended, the Battle Over Its Conclusions Began
MSN – Mark Mazzetti and Michael Schmidt (New York Times) | Published: 5/1/2019
Special counsel Robert Mueller wrote a letter in March complaining to Attorney General William Barr that a four-page memo to Congress describing the principal conclusions of the investigation into President Trump “did not fully capture the context, nature, and substance” of Mueller’s work. What followed was a dayslong, behind-the-scenes tussle over the first public presentation of one of the most consequential government investigations in American history. A richer picture of that battle has emerged, one of testy letters (Barr described one as “snitty”) and at least one tense telephone call between the special counsel Mueller and Barr. The two were longtime friends who found themselves on opposite sides of an embattled president. The growing evidence of a split between them also brought fresh scrutiny on Barr.
From the States and Municipalities
California – State Officials Keep Hiring Their Relatives. Will Newsom Crack Down on Nepotism?
Los Angeles Times – Patrick McGreevy | Published: 5/1/2019
California agencies have a long history of nepotism, along with pledges to end such favoritism, but the practice continues. Workers in at least seven state agencies have alleged favoritism shown to family members and friends of administrators in the last decade. Getting a desirable job in state government too often depends on who you know, say watchdogs and employees who have raised red flags. A 2017 investigation found 835 employees of the Board of Equalization, or 17.5 percent of its workforce at the time, were related by blood, adoption, marriage, or cohabitation.
Florida – Former David Straz Staffers Say Nashville Consultant Played Big Role in Campaign’s Failure
Tampa Bay Times – Charlie Frago and Christopher O’Donnell | Published: 4/30/2019
A few days before voters went to the polls in the first round of Tampa’s mayoral election, the David Straz campaign was in an uproar over a missing $225,000. Straz said he was freezing campaign spending until the missing money could be accounted for, members of his team said, but no one could come up with an answer. The reason, they said: political consultant Bill Fletcher was the only one who knew how campaign money was being spent. The Nashville-based consultant had the purse strings while also directing millions of dollars to his own company to buy television, radio, and digital advertising. He answered only to Straz, a political novice. Near-total power wielded by a single consultant is highly unusual and potentially dangerous, said veteran political consultant Adam Goodman.
Kansas – Former Salina Senator Pads State Salary with Travel, Food Vouchers
Topeka Capital Journal – Tim Carpenter | Published: 4/30/2019
The former state senator hired as Kansas Gov. Jeff Colyer’s regulatory fixer billed taxpayers thousands of dollars for driving to and from the job in Topeka after his official work station was quietly switched from a state office building near the Capitol to his residence in Salina. Tom Arpke, who burnished a political reputation in the Senate and House as a fiscal conservative eager to expose spending he considered superfluous, was chosen by Colyer to serve as the executive branch’s regulatory ombudsman. The decision to designate Arpke’s office as his personal residence 112 miles away from the Curtis State Office Building adjacent to the Capitol was necessary to justify Arpke’s monthly claims that taxpayers should pay him extra every time he drove to Topeka for work.
Massachusetts – For Sale in the Pot Industry: Political influence
Boston Globe – Andrew Ryan, Beth Healy, Dam Adams, Nicole Dungca, Todd Wallach, and Patricia Wen | Published: 5/1/2019
The law that legalized recreational marijuana in Massachusetts tried to make room for the little guy by limiting the number of cannabis shops a company could own or control. It also directly encourages proposals from black and Latino entrepreneurs whose community members were often unfairly targeted for arrest when pot was illegal. But so far, winning a license to sell marijuana in Massachusetts often seems to be determined by whom you know, or if you can afford to pay a lobbyist or consultant who knows people. Frank Perullo, the owner of Novus Group – which claims to be “one of the nation’s leading cannabis consulting firms” – estimates he has deployed his political connections and expertise to help push 40 to 50 proposed pot shops in Massachusetts.
Michigan – Federal Court: Michigan political maps illegally rigged to ‘historical proportions’
Detroit News – Jonathan Oosting | Published: 4/25/2019
A federal court in Michigan became the latest in the country to strike down its state’s legislative and congressional district maps, ruling they were examples of unconstitutional partisan gerrymandering. A panel of three judges in the U.S. District Court of the Eastern District of Michigan cited evidence that showed Republicans loaded some districts with Democratic voters and divided Democratic communities between other Republican-held seats, practices known as packing and cracking. The panel is giving the Republican-led House and Senate until August 1 to redraw the maps and get them signed into law by Gov. Gretchen Whitmer. If state officials do not finalize new maps by then, the court would draw new boundaries itself and could appoint a special master to do so.
Missouri – ‘Pay to Play’ Case Sinks St. Louis County Executive Steve Stenger
St. Louis Post-Dispatch – Jeremy Kohler, Jacob Barker, and Robert Patrick | Published: 4/30/2019
A federal grand jury indicted St. Louis County Executive Steve Stenger on charges of bribery, mail fraud, and the theft of honest services for trading political favors for campaign contributions. Stenger is accused of ensuring that donor John Rallo and his companies obtained contracts with the county and received other favors. Stenger also is accused of ensuring that an unnamed company obtained a state lobbying contract from the St. Louis Economic Development Partnership and taking actions to conceal the illegal conduct. Recent investigations by The St. Louis Post-Dispatch have raised concerns about county contracts going to Stenger’s political donors, and the county council began an ethics investigation into the matter.
New Hampshire – Sununu Inaugural Team Releases Conflict of Interest Policy, Months After Declining to Do So
New Hampshire Public Radio – Casey McDermott | Published: 4/25/2019
When faced with questions earlier this year about the thousands of dollars paid out from his inaugural committee to his sister and top political advisor, New Hampshire Gov. Chris Sununu’s team said those payments followed state and federal regulations, and “the organization’s bylaws and conflict of interest policy.” New Hampshire lacks comprehensive disclosure and compliance rules around gubernatorial inaugural committees, and Sununu is the first sitting governor required to detail how his committee raises and spends money in reports filed with the secretary of state’s office.
New Jersey – The Tax Break Was $260 Million. Benefit to the State Was Tiny: $155,520.
New York Times – Nick Corasaniti and Matthew Haag | Published: 5/1/2019
The Economic Opportunity Act, a measure intended to kick-start the sputtering post-recession economy in New Jersey, particularly in its struggling cities. The state would award lucrative tax breaks to businesses if they moved to New Jersey or remained in the state, creating and retaining jobs. But before the bill was approved by the Legislature, a series of changes were made to its language that were intended to grant specific companies hundreds of millions of dollars in additional tax breaks. Many of the last-minute changes to drafts of the bill were made by a real estate lawyer, Kevin Sheehan, whose influential law firm has close ties to Democratic politicians and legislative leaders in New Jersey. Sheehan was allowed to edit drafts of the bill in ways that opened up sizable tax breaks to his firm’s clients.
New York – Mayor de Blasio and City Hall Staff Cozied Up to Lobbyists and Special Interests in Hundreds of Meetings, News Analysis Shows
New York Daily News – Anna Sanders | Published: 5/2/2019
“I don’t sit down with lobbyists, I don’t talk to lobbyists, and I haven’t for years,” New York City Mayor Bill de Blasio said recently. But a New York Daily News analysis of public records shows otherwise. De Blasio’s deputy mayors, commissioners, and high-ranking aides had at least 358 meetings and talks with both contract and in-house lobbyists in just 11 months, records show. They spoke with 332 different lobbyists during that time, between March 1, 2018, and January 31 of this year. Six of the contract lobbyists are with Kramer Levin Naftalis & Frankel, a law firm that represented de Blasio during a probe into his fundraising. City taxpayers paid the firm $2.6 million for representing the mayor.
New York – Some Top Albany Lobbyists Aren’t Following Sweeping Disclosure Rule
Albany Times Union – Chris Bragg | Published: 4/27/2019
New requirements imposed by the New York Joint Commission on Public Ethics (JCOPE) say lobbyists must disclose the names of lawmakers, agency employees, or local elected officials they directly lobby concerning legislation, regulations, and other matters. A review of the first filings covered by the requirement, reflecting lobbying performed in the first two months of the year, shows many top firms are trying to comply – some in extreme detail – but several prominent firms are not. Bolton St. Johns has not disclosed lobbying any lawmakers or agency officials this year despite employing a lengthy roster of lobbyists and having dozens of clients with legislative business. Whether JCOPE would penalize powerful lobbyists for not following the rule remains to be seen. Critics said it is also far from clear that the new disclosure rule would survive a court challenge.
North Dakota – Legislature Approves Republican-Written Ethics Measure
Dickinson Press – John Hageman (Forum News Service) | Published: 4/25/2019
North Dakota lawmakers approved a bill that sets rules to comply with a voter-approved constitutional amendment aimed at ethics reform. The ballot initiative bans lobbyist gifts to public officials, requires the disclosure of the “ultimate and true source of funds” spent to influence elections and state government action, and creates a new state ethics commission that could investigate malfeasance. Greg Stites, an attorney hired by Measure 1 supporters to lobby lawmakers, said the implementation bill falls short by narrowing the definition of lobbyist and leaving holes in reporting requirements.
Ohio – Ex-Dayton Commissioner, State Lawmaker Arrested; More Arrests Coming, Feds Say
Dayton Daily News – Laura Bischoff, Josh Sweigart, Thomas Gnau, Cornelius Frolick, and Mark Govaki | Published: 4/30/2019
An investigation by federal agents into suspected public corruption in the Dayton area led to charges against Joey Williams, a local bank executive and former city commissioner; former state Rep. Clayton Luckie; city employee RoShawn Winburn; and Brian Higgins, a local man who once owned a dead body hauling business. Four separate federal indictments detail allegations of bribes, fraud, and contract steering. The charges involve allegations of wrong-doing starting in 2014. The separate schemes arose out of the same investigation, authorities said. FBI Assistant Special Agent Joseph Deters said the lengthy investigation used sophisticated methods to “uncover what appears to be a culture of corruption in Dayton-area politics.”
Tennessee – Why This Republican Lawmaker Hired His Own Personal Lobbyist to Work the Capitol Halls
The Tennessean – Joel Ebert | Published: 5/2/2019
Tennessee Rep. Martin Daniel officially hired a lobbyist recently, making him the first lawmaker in recent memory to have such an employee at his disposal. Nashville resident Drew Lonergan filed his lobbyist registration with the Tennessee Ethics Commission on March 25. Lonergan said he had been “consulting” for Daniel since January but registered as a lobbyist after consulting ethics officials. Lonergan’s sole employer listed on his lobbyist registration is Daniel, who is the only current lawmaker to have a personal lobbyist. Daniel said he pays Lonergan out of his own pocket and does not use campaign money to cover the expense.
May 2, 2019 •
Thursday’s LobbyComply News Roundup
Campaign Finance Nevada: “One Month Left: Nevada Democrats still haven’t heard a single campaign finance reform bill” by James DeHaven for Reno Gazette Journal Elections Florida: “Former David Straz Staffers Say Nashville Consultant Played Big Role in Campaign’s Failure” by […]
Campaign Finance
Nevada: “One Month Left: Nevada Democrats still haven’t heard a single campaign finance reform bill” by James DeHaven for Reno Gazette Journal
Elections
Florida: “Former David Straz Staffers Say Nashville Consultant Played Big Role in Campaign’s Failure” by Charlie Frago and Christopher O’Donnell for Tampa Bay Times
Ethics
National: “Congressional Democrats’ Emoluments Lawsuit Targeting President Trump’s Private Business Can Proceed, Judge Says” by Jonathan O’Connell, Ann Marimow, and Carol Leonnig (Washington Post) for MSN
National: “Mueller Complained That Barr’s Letter Did Not Capture ‘Context’ of Trump Probe” by Devlin Barrett and Matt Zapotosky (Washington Post) for MSN
California: “State Officials Keep Hiring Their Relatives. Will Newsom Crack Down on Nepotism?” by Patrick McGreevy for Los Angeles Times
Kansas: “Former Salina Senator Pads State Salary with Travel, Food Vouchers” by Tim Carpenter for Topeka Capital Journal
Ohio: “Ex-Dayton Commissioner, State Lawmaker Arrested; More Arrests Coming, Feds Say” by Laura Bischoff, Josh Sweigart, Thomas Gnau, Cornelius Frolick, and Mark Govaki for Dayton Daily News
Legislative Issues
Colorado: “Colorado Lawmakers Have a Dog Office for Dog Business (De-stressing)” by Kevin Beaty for Deverite
Lobbying
Massachusetts: “For Sale in the Pot Industry: Political influence” by Andrew Ryan, Beth Healy, Dam Adams, Nicole Dungca, Todd Wallach, and Patricia Wen for Boston Globe
New Jersey: “The Tax Break Was $260 Million. Benefit to the State Was Tiny: $155,520.” by Nick Corasaniti and Matthew Haag for New York Times
May 1, 2019 •
Wednesday’s LobbyComply News Roundup
Campaign Finance National: “‘No Corporate PAC’ Pledges Aren’t Always So Pure” by Kate Ackley for Roll Call National: “As Buttigieg Builds His Campaign, Gay Donors Provide the Foundation” by Jeremy Peters and Shane Goldmacher for New York Times Indiana: “Contractor […]
Campaign Finance
National: “‘No Corporate PAC’ Pledges Aren’t Always So Pure” by Kate Ackley for Roll Call
National: “As Buttigieg Builds His Campaign, Gay Donors Provide the Foundation” by Jeremy Peters and Shane Goldmacher for New York Times
Indiana: “Contractor Sues to Halt Pay-to-Play Ordinance” by Matthew LeBlanc (Associated Press) for Fort Wayne Journal-Gazette
Ethics
Colorado: “Another Allegation of Harassment Against Colorado Lobbyist Benjamin Waters” by Bente Birkeland for Colorado Public Radio
Illinois: “A Federal Jury Convicts Former Top Aide to Dorothy Brown of Lying About an Alleged Bribes-for-Jobs Scheme” by Jason Meisner for Chicago Tribune
Maryland: “Pugh’s Statement ‘Is Not True’: City Hall emails reveal how aides learned Baltimore mayor lied about book sales” by Doug Donovan, Talia Richman, and Jean Marbella for Baltimore Sun
New Hampshire: “Sununu Inaugural Team Releases Conflict of Interest Policy, Months After Declining to Do So” by Casey McDermott for New Hampshire Public Radio
Legislative Issues
Arkansas: “An Early Adopter, Arkansas Rethinks Lawmaker Term Limits” by Andrew DeMillo (Associated Press) for Hot Springs Sentinel-Record
Lobbying
Nevada: “Disgraced Ex-Councilman Ricki Barlow Returns to Lobby City Hall” by Shea Johnson for Las Vegas Review-Journal
April 24, 2019 •
Wednesday’s LobbyComply News Roundup
Campaign Finance North Carolina: “Dan Forest Corrects Report to Show a Donation from Greg Lindberg” by Paul Specht for Raleigh News and Observer Ethics National: “Constraints on Presidency Being Redefined in Trump Era, Report Fallout Shows” by Ashley Parker and […]
Campaign Finance
North Carolina: “Dan Forest Corrects Report to Show a Donation from Greg Lindberg” by Paul Specht for Raleigh News and Observer
Ethics
National: “Constraints on Presidency Being Redefined in Trump Era, Report Fallout Shows” by Ashley Parker and Josh Dawsey (Washington Post) for MSN
National: “Supreme Court’s Conservatives Appear Likely to Let Trump Add Citizenship Question to 2020 Census” by Robert Barnes and Mark Berman for Washington Post
Colorado: “Investigation into One Lobbyist’s Actions Raises Questions About Workplace Harassment Policy at The Capitol” by Bente Birkeland for Colorado Public Radio
Connecticut: “Two Rival Politicians Accused Each Other of Using Drugs. The Result Was a Showdown at a Urinalysis Lab.” by Antonia Noori Farzen for Washington Post
Maryland: “Baltimore City Council to Weigh New Ethics Rules and Limits on Mayoral Power Amid Healthy Holly Controversy” by Ian Duncan and Kevin Rector for Baltimore Sun
New Hampshire: “Financial Disclosure Bill Stalls in Senate” by David Solomon for Manchester Union Leader
Lobbying
National: “K Street Gets Behind Mayor Pete Buttigieg” by Kate Ackley for Roll Call
Florida: “Opioid Lawsuit Bill Stalls in Florida Committee Chaired by Sister-in-Law of Walgreens Lobbyist” by Lawrencwe Mower for Tampa Bay Times
April 22, 2019 •
Monday’s LobbyComply News Roundup
Campaign Finance National: “How the IRS Gave Up Fighting Political Dark Money Groups” by Maya Miller for ProPublica South Dakota: “Lobbyists Sue SD Officials Over Ban on Out-of-State Contributions to Ballot Measure Committees” by Sarah Mearhoff for Mitchell Republic Elections […]
Campaign Finance
National: “How the IRS Gave Up Fighting Political Dark Money Groups” by Maya Miller for ProPublica
South Dakota: “Lobbyists Sue SD Officials Over Ban on Out-of-State Contributions to Ballot Measure Committees” by Sarah Mearhoff for Mitchell Republic
Elections
National: “Mueller’s Report Paints a Portrait of a Campaign Intrigued by Russian Overtures” by Rosalind Helderman, Tom Hamburger, Karoun Demirjian, and Rachel Weiner (Washington Post) for Anchorage Daily News
Ethics
California: “Lawmakers and Landlords: More than a quarter of California legislators are both” by Matt Levin and Elizabeth Castillo for CALmatters
South Carolina: “Richard Quinn, for Years Consultant to Top SC GOP Pols, Indicted on Perjury Charges” by John Monk andf Avery Wilkes for The State
Legislative Issues
Texas: “Conservative Group Empower Texans Sues Lawmaker to Gain State House Media Credentials” by Emma Platoff for Texas Tribune
Lobbying
Florida: “Ethics Complaint Accuses Kristen Rosen Gonzalez of Violating Lobbying Rules” by Kyra Gurney for Miami Herald
Indiana: “Scott Pruitt Left the EPA Mired in Scandal. Now He Is Lobbying Indiana Lawmakers.” by Emily Hopkins for Indianapolis Star
April 19, 2019 •
News You Can Use Digest – April 19, 2019
Federal: Analysis: The many reasons to run for president when you probably don’t stand a chance MSN – Matt Flegenheimer (New York Times) | Published: 4/14/2019 Presidential primaries tend to produce one nominee but many winners. Beyond the long-shot candidates […]
Federal:
Analysis: The many reasons to run for president when you probably don’t stand a chance
MSN – Matt Flegenheimer (New York Times) | Published: 4/14/2019
Presidential primaries tend to produce one nominee but many winners. Beyond the long-shot candidates effectively auditioning for cabinet positions or building a profile (and donor base) for future races, there are prospective books to sell and television contracts to sign, corporate boards to join, and paid speeches to make. Any setback is temporary. “There’s just absolutely no downside and only upside,” Republican strategist Antonia Ferrier said of quixotic presidential runs. “It is an industry of self-promotion. What better way to self-promote than run for president?”
Mueller Whacks Trump with Evidence of Obstruction
Politico – Josh Gerstein and Darren Samuelsohn | Published: 4/18/2019
Special counsel Robert Mueller’s report revealed President Trump tried to seize control of the Russia probe and force Mueller’s removal to stop him from investigating potential obstruction of justice by the president. On numerous occasions, Trump’s impulses to stymie the investigators were only halted by staffers’ refusal to carry out orders. While the document confirms Mueller found no conspiracy between Trump’s campaign and the Kremlin, it contains numerous unfavorable observations regarding potential obstruction of justice and sheds light on why the special counsel chose to neither exonerate Trump nor conclude he committed a crime.
Political Consultant Patten Sentenced to Probation After Steering Ukrainian Money to Trump Inaugural
Seattle Times – Spencer Hsu (Washington Post) | Published: 4/12/2019
An American political consultant whose guilty plea marked the first confirmation that illegal foreign money was used to help fund Donald Trump’s inaugural committee was sentenced to probation by a federal judge who cited his cooperation with prosecutors. W. Samuel Patten admitted steering $50,000 from a pro-Russian Ukrainian politician to Trump’s committee in an investigation spun off from special counsel Robert Mueller’s probe of Russian interference in the 2016 election. Patten acknowledged he was helped by a Russian national who is a longtime associate of former Trump campaign chairperson Paul Manafort. U.S. District Court Judge Amy noted no federal sentencing guideline directly applies to his offense of failing to register as a foreign lobbyist, which is punishable by up to five years in prison.
Prosecution of Former White House Counsel Sets K Street on Edge – Again
Politico – Theodoric Meyer | Published: 4/11/2019
The Justice Department’s indictment of Gregory Craig, who served as White House counsel under President Obama, sent a signal to K Street that lobbyists who work for foreign interests without registering have reason to be afraid. Some lobbyists have been on edge since Paul Manafort, President Trump’s former campaign chairperson, was indicted on charges of violating the Foreign Agents Registration Act, previously a rarely enforced law requiring lobbyists and others who work on behalf of foreign governments and political parties to disclose their activity. Some said Craig’s indictment is likely to reverberate on K Street as the crackdown continues. A letter from the FARA enforcement unit now “has to be taken as seriously as a heart attack,” said Matthew Sanderson, an attorney who advises clients on the law.
From the States and Municipalities:
Alabama: Lawmakers Pass Bill Saying Economic Developers Are Not Lobbyists
AL.com – Mike Cason | Published: 4/16/2019
A bill exempting economic developers from a requirement to register as lobbyists under the Alabama ethics law won final passage in the Legislature and could be signed into law by Gov. Kay Ivey. Lawmakers and the state’s industrial recruiters say the bill was needed to protect the confidentiality of site selection efforts by representatives of companies interested in coming to Alabama. Lobbyists are required to report to the Ethics Commission who they represent and information about their activities, reports that are available to the public. The bill proved controversial last year, with critics saying it would create two classes of individuals under the ethics law and open loopholes.
California: Judge Dismisses Lawsuit Against Santa Clara Mayor in Conflict-of-Interest Case
San Jose Mercury News – Thy Vo | Published: 4/15/2019
Superior Court Judge Mark Pierce threw out a lawsuit that accused Santa Clara Mayor Lisa Gillmor of failing to divulge at least $180,000 in income on conflict-of-interest forms, ruling the documents are “political works” exempt from disclosure requirements. The forms require elected and appointed officials to report all their financial interests. But Gillmor’s attorney argued the lawsuit was hatched by political opponents and should be dismissed under a provision in the law concerning a strategic lawsuit against public participation (SLAPP) that protects people against suits filed to intimidate them or silence their free speech rights. Pierce ruled Gillmor’s conflict-of-interest forms are related to her role as a politician and thereby qualify as “political works” that are protected speech under the anti-SLAPP statute.
Colorado: Denver’s Big 3 Lobbyists Have Deep Relationships with City Government and Mayor Michael Hancock
Colorado Public Radio – Ben Markus | Published: 4/11/2019
Denver Mayor Michael Hancock is seeking a third term this year, and on the campaign trail he is often criticized for his close ties to the business community, particularly developers. Even critics say there is nothing wrong with the mayor and his staff being in close quarters with the business community. But a Colorado Public Radio investigation found several lobbying groups that travel with the mayor also have contracts to work for the city. At the same time, they are actively lobbying the city on behalf of corporate clients. Lobbyists often stock their firms with former city workers, who sometimes go back to work for Denver, perpetuating the “revolving door,” which is legal under city rules. The lobbying firms are also among the largest donors to city campaigns.
Florida: Internet Intrigue: Blitz of lobbyists, consultants worked behind scenes before broadband vote
Tallahassse Democrat – Jeff Burlew | Published: 4/16/2019
When talk of a city-owned broadband internet utility surfaced at the same time an out-of-town fiber-optic firm eyed Tallahassee as a potential new market, lobbyists, public relations people and industry consultants streamed into action. The debate during city commission meetings in March was contentious enough. But there was intrigue behind the curtain. By the time the dust settled, the commission reversed course on plans to explore creation of a new utility, something MetroNet, an Indiana-based company still considering coming to town, opposed. The drama that unfolded came after years of high-profile controversy involving lobbyists and consultants at City Hall. Watchdogs say it highlights the kind of murky dealings that undermine confidence in the city’s ability to police lobbying.
Indiana: Casino-Investor Ties Led Speaker Bosma to Skip Gaming Bill Vote. Here’s Why Questions Linger.
Indianapolios Star – Tony Cook and Kaitlin Lange | Published: 4/18/2019
Indiana House Speaker Brian Bosma is recusing himself from votes on legislation that would make some of the biggest changes to Indiana’s casino laws in years because of a potentially lucrative contract arranged by a casino owner. Bosma said his law firm is providing legal representation to the Vigo County Capital Improvement Board, a local entity that stands to benefit from the legislation, which would allow a casino in Terre Haute. The contract was arranged by businessperson Greg Gibson, one of two principal investors in Spectacle Entertainment. Spectacle is lobbying lawmakers for permission to move two casinos in Gary to more lucrative locations. Heightening the concerns are Bosma’s private discussions about the legislation with other lawmakers and casino companies, despite his decision to avoid any public votes on the topic.
Louisiana: Proposed Law Would Bar Legislators from Giving Tulane Scholarships to Immediate Family
New Orleans Times Picayune – Wilborn Nobles | Published: 4/16/2019
A new bill in the Louisiana Senate would bar close relatives of certain state politicians from being eligible to receive free tuition at Tulane University. Senate Bill 183 would make Tulane’s Legislative Scholarship unavailable for the immediate family members of a Louisiana legislator, statewide elected official, or an elected Louisiana official in Congress. The advantage of wealth and privilege in gaining access to elite universities has emerged as a hot topic following recent allegations that wealthy parents bribed university administrators and coaches at top schools to gain admission for their children. While no such payments are alleged in Tulane’s case, some critics say the university’s Legislative Scholarship Program is a “source of political patronage.”
Massachusetts: For the First Time, Boston Municipal Lobbyists Are Required to Register Their Work with City Hall
Boston Globe – Milton Valencia | Published: 4/17/2019
Lobbyists in Boston will now have to register with the city clerk’s office. Those who do not register could face a fine of up to $300, according to an ordinance that was passed last year. Under the ordinance, the city will set up a five-member commission that will be charged with reviewing an individual or entity’s work with the city, determining whether that work would be subject to the new law, and whether to hand out penalties, said City Clerk Maureen Feeney. She said her office was communicating the new requirements to lobbyists who had inquired about the process. Feeney also said an online portal system the city set up is similar to the one used by the state.
Mississippi: Public Universities Spend Millions Wining, Dining, Lobbying Mississippi Lawmakers
Jackson Clarion-Ledger – Luke Ramseth and Geoff Pender | Published: 4/10/2019
Seven of Mississippi’s eight public universities and their private foundations spent nearly $2 million on lobbying over the past four years, a Jackson Clarion Ledger analysis found. That amount includes money for staff lobbyists and private lobbying firms, plus entertaining lawmakers. These public universities lavish money on public officials in hopes of getting more public dollars. And they spend more than most any other special interest groups seeking influence in the Capitol. In Mississippi, it is all completely legal. The state’s lack of restrictions on gifts to public officials means elected officials, their families, and even friends can benefit from unlimited largesse without worry.
Missouri: After Controversial MSD Vote, Winners Donated More Than $150,000 to Stenger Campaign
St. Louis Post Dispatch – David Hunn and Jacob Barker | Published: 4/15/2019
A contract to build the Deer Creek tunnel was one of the largest the Metropolitan St. Louis Sewer District (MSD) had awarded in years. MSD staff recommended awarding it to the low bidder, Jay Dee Contractors. The district board’s practice, almost without exception, was to approve the professional staff’s recommendation. But SAK Construction mounted a lobbying effort over the contract, and the company’s concerns reached St. Louis County Executive Steve Stenger’s office, which appoints three of MSD’s six members on its Board of Trustees. A top aide to Stenger met with two key trustees to discuss the matter. After the meeting with Stenger’s aide, one of those two MSD trustees switched his vote, and SAK ultimately won the contract. Less than a month after the vote, SAK executives did something they had never done before: they began pouring money into Stenger’s campaign.
Nevada: Nevada Lawmaker Paid Her Sister Thousands for Campaign Work, But We Can’t See the Details
Reno Gazette-Journal – James DeHaven | Published: 4/15/2019
Nevada has routinely ranked at or near the bottom of nationwide political transparency surveys. But ex-state Senate Majority Leader Kelvin Atkinson’s downfall under a cloud of admitted election spending misdeeds has sparked renewed interest in strengthening anti-corruption statutes. Now, weeks after Atkinson’s resignation, a Reno Gazette Journal analysis reveals state Sen. Pat Spearman paid nearly $103,000 in campaign funds to a consulting firm with close ties to her sister. Reports show Donna Spearman-Davis and Crawford Management Group were the two largest recipients of Spearman’s campaign cash, accounting for about 30 percent of the nearly $500,000 the former congressional hopeful and longtime state senator spent between 2012 and 2018.
April 18, 2019 •
Thursday’s LobbyComply News Roundup
Campaign Finance National: “Why Democrats Are Falling Over Themselves to Find Small-Dollar Donors” by Carrie Levine for Center for Public Integrity Florida: “Miami’s Political Escape Artist Can’t Shake the Feds’ Election Conspiracy Lawsuit” by David Smiley and Jay Weaver for […]
Campaign Finance
National: “Why Democrats Are Falling Over Themselves to Find Small-Dollar Donors” by Carrie Levine for Center for Public Integrity
Florida: “Miami’s Political Escape Artist Can’t Shake the Feds’ Election Conspiracy Lawsuit” by David Smiley and Jay Weaver for Miami Herald
Missouri: “After Controversial MSD Vote, Winners Donated More Than $150,000 to Stenger Campaign” by David Hunn and Jacob Barker for St. Louis Post Dispatch
Elections
National: “Chicago’s Lori Lightfoot Among a Wave of Lesbian Mayors” by Alan Greenblatt for Governing
Tennessee: “Amid Protests, Houses Passes Bill That Critics Say Criminalizes Voter Registration” by Joel Ebert for The Tennessean
Ethics
Louisiana: “Proposed Law Would Bar Legislators from Giving Tulane Scholarships to Immediate Family” by Wilborn Nobles for New Orleans Times Picayune
Lobbying
Alabama: “Lawmakers Pass Bill Saying Economic Developers Are Not Lobbyists” by Mike Cason for AL.com
Missouri: “The St. Louis Board of Aldermen Mulls Rules Change for Lobbyists, Guests” by Andrea Henderson for St. Louis Public Radio
April 17, 2019 •
Wednesday’s LobbyComply News Roundup
Campaign Finance Colorado: “In Final Push, Democrats Rush Major Changes to Elections and Campaign Finance Disclosure in Colorado” by Sandra Fish for Colorado Sun New York: “City Council Hears Bill to Expand Public Match in Campaign Finance Program” by Samar […]
Campaign Finance
Colorado: “In Final Push, Democrats Rush Major Changes to Elections and Campaign Finance Disclosure in Colorado” by Sandra Fish for Colorado Sun
New York: “City Council Hears Bill to Expand Public Match in Campaign Finance Program” by Samar Khurshid for Gotham Gazette
Ethics
National: “Interior’s Watchdog Opens an Ethics Probe into Bernhardt Four Days after His Senate Confirmation” by Darryl Fears for Washington Post
California: “Judge Dismisses Lawsuit Against Santa Clara Mayor in Conflict-of-Interest Case” by Thy Vo for San Jose Mercury News
Legislative Issues
National: “A Record Number of Congresswomen are Mothers. Here’s a Glimpse Inside Their First-Ever Caucus.” by Kaitlin Gibson for Washington Post
Lobbying
Canada: “Ruling in Trudeau-Aga Khan Case Could Change Rules for Unpaid Lobbyists” by Elizabeth Thompson for CBC
Florida: “Beckham Partner Has a Friend in Miami-Dade’s Mayor and a Lobbyist in the Mayor’s Son” by Douglas Hanks for Miami Herald
Florida: “Internet Intrigue: Blitz of lobbyists, consultants worked behind scenes before broadband vote” by Jeff Burlew for Tallahassse Democrat
April 16, 2019 •
Tuesdays LobbyComply News Roundup
Campaign Finance Nevada: “Nevada Lawmaker Paid Her Sister Thousands for Campaign Work, But We Can’t See the Details” by James DeHaven for Reno Gazette-Journal Elections National: “Analysis: The many reasons to run for president when you probably don’t stand a […]
Campaign Finance
Nevada: “Nevada Lawmaker Paid Her Sister Thousands for Campaign Work, But We Can’t See the Details” by James DeHaven for Reno Gazette-Journal
Elections
National: “Analysis: The many reasons to run for president when you probably don’t stand a chance” by Matt Flegenheimer (New York Times) for MSN
Ethics
Arkansas: “Arkansas Legislators Pass Half of Measures Floated on Ethics” by Michael Wickline for Northwest Arkansas Democrat-Gazette
Colorado: “Denver’s Mayor Has Accepted Big Gifts and Campaign Contributions from People Who Do Business with The City – And It’s Perfectly Legal” by Ben Markus for Colorado Public Radio
Pennsylvania: “Engineer Who Bribed Allentown, Reading Mayors Ordered to Educate Others on Pitfalls of Public Corruption” by Peter Hall for Allentown Morning Call
Lobbying
National: “Political Consultant Patten Sentenced to Probation After Steering Ukrainian Money to Trump Inaugural” by Spencer Hsu (Washington Post) for Seattle Times
National: “Opioid Maker Mallinckrodt to Support Lobbying Disclosure” by Laura Weiss for Roll Call
Florida: “Jane Castor Might Be Tampa’s Next Mayor. Her Partner, Ana Cruz, Is a Lobbyist. Does It Matter?” by Charley Frego and Kirby Wilson for Tampa Bay Times
April 12, 2019 •
News You Can Use Digest – April 11, 2019
National: You Elected Them to Write New Laws. They’re Letting Corporations Do It Instead. USA Today – Rob O’Dell (Arizona Republic) and Mark Penzenstadler | Published: 4/4/2019 A two-year investigation reveals for the first time the extent to which special […]
National:
You Elected Them to Write New Laws. They’re Letting Corporations Do It Instead.
USA Today – Rob O’Dell (Arizona Republic) and Mark Penzenstadler | Published: 4/4/2019
A two-year investigation reveals for the first time the extent to which special interests have infiltrated state Legislatures using model legislation. USA Today and The Arizona Republic found at least 10,000 bills almost entirely copied from model legislation were introduced nationwide in the past eight years, and more than 2,100 of those bills were signed into law. In all, these copycat bills amount to?the nation’s largest, unreported special-interest campaign, driving agendas in every statehouse and touching nearly every area of public policy. For lawmakers, copying model legislation is an easy way to get fully formed bills to put their names on, while building relationships with lobbyists and other potential campaign donors.
Federal:
Courts Have No Say When FEC Wants to Ignore Alleged Wrongdoing
Bloomberg Government – Kenneth Doyle | Published: 4/5/2019
A decision by two federal judges is making it impossible to challenge the way the FEC enforces campaign laws. When the agency deadlocks along party lines, that is now the end of the line, no court can second-guess letting an accused wrongdoer off the hook. Judicial review was eliminated last June by a panel of the U.S. Court of Appeals for the District of Columbia Circuit. Critics of that ruling have waited for the better part of year to find out if they would be allowed to argue before the full court on reversing that precedent. Many FEC enforcement complaints have been dismissed on party-line votes, with Democrats voting to pursue action and Republicans opposed.
Democrats Are Cozying Up to Corporate Lobbyists Despite Purity Pledges
Politico – Theodoric Meyer | Published: 4/8/2019
Some Democratic lawmakers who have promised to steer clear of campaign donations from corporate PACs are allowing the same corporations’ lobbyists to write them personal checks, and in some cases even host fundraisers for them. Democrats on K Street are frustrated by what they view as arbitrary restrictions on which kinds of money lawmakers will take and which kinds are forbidden, according to interviews. Democrats’ rush to reject corporate PAC money falls heaviest on in-house Democratic lobbyists for big corporations. Some of those lobbyists have found it harder to mingle with House Democrats when they cannot attend fundraisers by writing a corporate PAC check to get in the door.
Scant Staffing Means Few Monitoring Whether Lobbyists Obey Law
Bloomberg Government – Megan Wilson | Published: 4/9/2019
In 2016, enforcement of the Lobbying Disclosure Act (LDA) was handled by six part-time Justice Department lawyers and one full-time paralegal. Two years later, that work was being done by a much smaller staff: one part-time lawyer, one full-time paralegal, and one part-time paralegal. There has not been an enforcement action for an LDA violation in four years, and since the law was enacted in 1995, there have been a total of nine civil enforcement actions. For firms that want to stay on the right side of the law, “the lack of lawyers in the office has complicated matters when there are tricky legal issues to be resolved,” said Caleb Burns, a partner at Wiley Rein.
From the States and Municipalities:
Alabama: Ward: Bill allowing lobbyist gifts to lobbyists ‘dead’ in his committee
Montgomery Advertiser – Brian Lyman | Published: 4/10/2019
The Alabama Senate Judiciary Committee delayed a vote on a proposed bill that critics say would represent a major step back from ethics laws passed in 2010. The legislation’s sponsor, Sen. Greg Albritton, argued Senate Bill 230 would provide clarity by providing better definitions, explicit lines of enforcement and punishments for transgressions, and disclosures of gifts from lobbyists to officials. But the bill would lift any limits on what lobbyists could give to officials, provided they do not do so with corrupt intent. It also curtails the Alabama Ethics Commission’s ability to refer complaints to the attorney general’s office. “This bill is dead in my committee as far as I am concerned,” Judiciary Committee Chairperson Cam Ward wrote in a text.
California: To Block California Soda Taxes, Companies Paid for ‘Black Panther’ Tickets, Fancy Dinners
Los Angeles Times – Samantha Young (California Healthline) | Published: 4/7/2019
Dinners at an expensive restaurant in Maui, with ocean views. Tickets to professional sports games. A free screening of “Black Panther” at a Sacramento IMAX theater. And a $250,000 donation to a group that funds the governor’s travel. That is a sampling of the $11.8 million that soft drink companies and their lobbyists spent at the state and local levels in the past two years in California to block proposals such as taxing sugary beverages and imposing health warnings on their drinks, an analysis found. The beverage industry, like other interest groups, spends money to influence lawmakers in several ways. It makes financial contributions to their campaigns and lobbies them and their staffs, sometimes plying them with meals, events, and travel. It also donates to charities in lawmakers’ names.
Georgia: Georgia Ethics Chief to Issue Subpoenas in Investigation of Abrams Gubernatorial Campaign
The Hill – Zach Budryk | Published: 4/11/2019
David Emadi, the new executive secretary of the Georgia Government Transparency & Campaign Finance Commission, will subpoena bank records from 2018 Democratic gubernatorial candidate Stacey Abrams’ campaign. Emadi said he will also soon make a decision on whether to charge campaigns of Atlanta mayoral candidates for campaign finance fraud. Emadi replaced Stefan Ritter, who was accused of watching pornography at work and telling staff not to pursue potential campaign finance violations by candidates for city and statewide office. Ritter resigned in February.
Michigan: Mayor Mike Duggan Set Her Up to Succeed. That Raises Questions.
Detroit Free Press – Joe Guillen and Kat Stafford | Published: 4/4/2019
A charitable program run by a woman with close ties to Detroit Mayor Mike Duggan received $358,000 in city grants and benefited from a fundraising campaign that a top city official spearheaded at the mayor’s direction. An email request shows Duggan ordered the city’s chief development officer to raise money for Make Your Date, which is a nonprofit medical organization where Dr. Sonia Hassan serves as president and director. Hassan was seen last year arriving after hours at the same suburban residence as Duggan in a surveillance video taken by a private investigator. The city’s financial support, attempted fundraising campaign, and Duggan’s repeated promotion of Make Your Date raises ethics questions about whether the mayor used city resources to benefit Hassan’s program.
Mississippi: Other States Ban Gifts to Lawmakers. Why Doesn’t Mississippi?
Jackson Clarion-Ledger – Luke Ramseth and Geoff Pender | Published: 4/9/2019
There are no restrictions on gifts from lobbyists to Mississippi lawmakers. A newspaper’s investigation found the state’s public universities alone spent hundreds of thousands of dollars on gifts for public officials from 2015 to 2018, including more than $200,000 in free sports tickets. In the 1990s, the Legislature passed a bill that required lobbyists and their clients to regularly report expenditures to the secretary of state. The reporting requirements caused lobbyists to “reign in” their spending some, said former legislator John Reeves, but it remains hard to tell if reporting now is honest and accurate. It not clear whether anyone in state government keeps a close eye on the lobbyist reports. Some contain errors, and most provide only vague details about what gifts were purchased.
Missouri: Appeals Court Upholds Joyce Ruling – Corporations Can Create PACs, but Not Donate Directly to Them
Jefferson City News Tribune – Bob Watson | Published: 4/10/2019
Missouri corporations may not make direct contributions to their own PACs, a three-judge panel of the state’s Western District appeals court ruled. The decision upheld a similar ruling by Cole County Presiding Circuit Court Judge Pat Joyce in the Missouri Chamber of Commerce and Industry’s lawsuit against the state Ethics Commission. That lawsuit challenged the commission’s interpretation of voters’ intent, after more than two-thirds of the people who voted in November 2016 added the “Missouri Campaign Contribution Reform Initiative” to the state constitution.
New Hampshire: In Votes at N.H. State House, Lawmakers’ Personal and Public Interests Often Overlap
New Hampshire Public Radio – Casey McDermott | Published: 4/9/2019
New Hampshire lawmakers are paid $100 a year, so it is no surprise that many of them rely on other sources of income to get by. As a result, state lawmakers end up dealing with all kinds of proposals that can directly impact their family finances, the taxes they pay, the companies where they work, or the boards on which they serve. In policing these potential conflicts of interest, New Hampshire’s ethics rules tend to favor disclosure over recusal – which means that, with few exemptions, lawmakers are allowed to vote on or even sponsor legislation that has a clear benefit to their personal interests.
New York: To Get Trump’s Tax Returns, N.Y. Democrats Try a New Strategy
MSN – Jesse McKinley (New York Times) | Published: 4/8/2019
New York lawmakers introduced legislation that would make President Trump’s state income tax returns public, the latest step in a battle over details Trump has refused to release. Backers see the bill as an alternative way to Trump’s tax records, even if the president’s allies manage to stonewall efforts in the U.S. House to get his federal returns. A tax return from New York, the president’s home state and the headquarters of his business empire, could likely contain much of the same financial information as a federal return. Under the bill, the commissioner of the New York Department of Taxation and Finance would be permitted to release any state tax return requested by leaders of three congressional committees for any “specific and legitimate legislative purpose.”
Rhode Island: Rhode Island Reaches Lobbying Disclosure Agreement with Mastercard
Pensions and Investments – Hazel Bradford | Published: 4/4/2019
Mastercard Inc. reached a shareholder agreement with Rhode Island Treasurer Seth Magaziner to increase its disclosure of corporate lobbying expenses. Inadequate lobbying disclosure by publicly traded companies presents reputational risks, Magaziner said, particularly in recent cases where large companies have upset customers, investors, and other stakeholders by supporting controversial causes. Mastercard will publish an annual list of its lobbying priorities and amounts spent on lobbying and an annual list of U.S.-based trade associations receiving $25,000. It will also disclose the percentage of those payments used for lobbying and ask the trade associations for that information.
Washington: A Washington State Senator Praised the Cambodian Government Last Year. Then It Gave Him a $500,000 Lobbying Contract.
Seattle Times – Jim Brunner and Joseph O’Sullivan | Published: 4/5/2019
A company created by Washington Sen. Doug Ericksen landed a $500,000 lobbying contract from the Cambodian government he praised last year during a controversial visit as an election observer. Ericksen registered as a foreign agent for Cambodia in a recent filing with the U.S. Justice Department, along with former state Rep. Jay Rodne. Ericksen said his arrangement is “100 percent legal,” noting state legislators serve part time and are expected to have outside jobs. He also disputed characterizations of the deal as a lobbying contract, saying he is acting as a consultant. Neither Ericksen nor Rodne disclosed their ownership of PacRim Bridges in 2018 statements filed with the state Public Disclosure Commission. Ericksen said they did not have to list the business because he was not yet making money from it.
Wyoming: Wyoming’s Campaign Finance Reforms Leave Several Holes for Dark Money Influence
Casper Star Tribune – Nick Reynolds | Published: 4/5/2019
Campaign finance experts say the reforms passed by the Wyoming Legislature this year leave a number of gaps that could potentially be exploited by so-called dark money groups in the 2020 elections. While sponsors acknowledged Senate File 18 was not a perfect bill, it does make a number of changes to a system that, in the 2018 cycle, was exploited by multiple PACs of often mysterious origins. Some of these fixes include improving the reporting of late political activity, requiring PACs formed outside of Wyoming to disclose their activity, and defining “electioneering communications.”
April 10, 2019 •
Wednesday’s LobbyComply News Roundup
Campaign Finance National: “Democrats Are Cozying Up to Corporate Lobbyists Despite Purity Pledges” by Theodoric Meyer for Politico Arkansas: “Suit Challenges State’s Limit on Campaign-Donation Time” by Linda Satter for Arkansas Democrat-Gazette Maryland: “Anne Arundel Gets Green Light for Local […]
Campaign Finance
National: “Democrats Are Cozying Up to Corporate Lobbyists Despite Purity Pledges” by Theodoric Meyer for Politico
Arkansas: “Suit Challenges State’s Limit on Campaign-Donation Time” by Linda Satter for Arkansas Democrat-Gazette
Maryland: “Anne Arundel Gets Green Light for Local Campaign Finance Reform” by Chase Cook for Capital Gazette
Missouri: “Feds Want Records Related to Big Stenger Contributors” by Jeremy Kohler for St. Louis Post-Dispatch
Washington: “Tim Eyman Loses in Court, Faces Possible Lifetime Ban on Managing Political Finances” by David Gutman for Seattle Times
Ethics
Arizona: “Lawmaker Who Sells Fireworks Says It’s ‘Goofy’ to Pan Him for Sponsoring Fireworks Bill” by Howard Fischer (Capitol News Services) for Arizona Capitol Times
Indiana: “House Ethics Committee Dismisses Complaint Against Speaker Bosma Due to Lack of ‘Reasonable Cause’” by Kaitlin Lange and Arika Herron for Indianapolis Star
New York: “To Get Trump’s Tax Returns, N.Y. Democrats Try a New Strategy” by Jesse McKinley (New York Times) for MSN
April 5, 2019 •
News You Can Use Digest – April 5, 2019
National: What Is ALEC? ‘The Most Effective Organization’ for Conservatives, Says Newt Gingrich USA Today – Yvonne Wingett Sanchez and Rob O’Dell | Published: 4/4/2019 The American Legislative Exchange Council (ALEC) became the nation’s best-known so-called model bill factory over […]
National:
What Is ALEC? ‘The Most Effective Organization’ for Conservatives, Says Newt Gingrich
USA Today – Yvonne Wingett Sanchez and Rob O’Dell | Published: 4/4/2019
The American Legislative Exchange Council (ALEC) became the nation’s best-known so-called model bill factory over its four decades by providing more than fill-in-the-blank legislation. The industry-sponsored group has weathered controversy and flourished because it also offers conservative Republican elected officials a social network, access to campaign donors, and a blueprint for how to accelerate their political careers. The networking takes place at ALEC’s annual meetings, where the group fetes and entertains lawmakers and their families. Relationships are forged over drinks and dinners, where lawmakers sit alongside conservative luminaries and corporate chiefs. By the end of each ALEC conference, attendees leave motivated to evangelize for conservative policies and equipped with ready-made legislation.
Federal:
GAO: One-third of lobbying disclosures failed to include political contributions
The Hill – Alex Gangitano | Published: 3/29/2019
One-third of lobbyists’ disclosures do not include political contributions and one-fifth do not include previous jobs in government, a new Government Accountability Office (GAO) report finds. The GAO audited compliance with the Lobbying Disclosure Act, which requires a person to register as a lobbyist if lobbying activities constitute at least 20 percent of their time working for a client. The watchdog examined lobbying disclosure (LD-2) reports and political contribution (LD-203) reports filed during the third and fourth quarter of 2017 and the first and second quarter of 2018. It also conducted interviews with lobbyists for the study.
Some on Mueller’s Team Say Report Was More Damaging Than Barr Revealed
MSN – Nicholas Fandos, Michael Schmidt, and Mark Mazzetti (New York Times) | Published: 4/3/2019
Some members of special counsel Robert Mueller’s team have reportedly complained that the evidence they uncovered of obstruction of justice during their investigation was stronger than what U.S. Attorney General William Barr suggested. In his four-page letter to Congress, Barr wrote that Mueller did not uncover evidence to conclude the Trump campaign colluded with Moscow to influence the 2016 election. Barr added that Mueller did not make a definitive conclusion on whether Trump obstructed justice. But Barr and Deputy Attorney General Rod Rosenstein decided Mueller did not provide sufficient evidence of obstruction to pursue it. The summary noted Mueller did not exonerate the president on the obstruction matter. Some members of Mueller’s team felt Barr should have included more information from their own summaries of the probe.
From the States and Municipalities:
California: Judge Bars Former Ethics Panel Member from Running for L.A. City Council
Los Angeles Times – Emily Alpert Reyes | Published: 3/28/2019
A judge ruled that Former Los Angeles Ethics Commission member Serena Oberstein is barred from running for a city council seat that is up for grabs this summer. The legal battle revolved around a section of the City Charter that restricts ethics commissioners from running for any city office “concerning which the commission has made a decision during the term of the commissioner” – a ban that applies for two years after the end of their terms. In his ruling, Superior Court Judge James Chalfant wrote that voting to impose fines on two people who ran unsuccessfully in the past to represent Council District 12 made Oberstein ineligible to run for that seat, since “these decisions concern the very office for which Oberstein seeks election.”
Illinois: Lori Lightfoot Elected Chicago Mayor, Making Her the First African-American Woman to Lead the City
Chicago Tribune – Bill Ruthhart | Published: 4/2/2019
Former federal prosecutor Lori Lightfoot won a resounding victory to become both the first African-American woman and openly gay person elected mayor of Chicago. After waging a campaign focused on upending the vaunted Chicago political machine, Lightfoot dismantled one of its major cogs by dispatching Cook County Board President Toni Preckwinkle, whose candidacy had been hobbled in part by an anti-incumbent mood among voters and an ongoing federal corruption investigation at City Hall. Both self-styled progressives, Preckwinkle and Lightfoot did not disagree much on the issues. As a result, the race largely boiled down to change versus experience.
Indiana: Casino Boss Treated Holcomb to Private Flights with Lucrative Gambling Deal on the Line
Indianapolis Star – Kaitlin Lange and Tony Cook | Published: 3/28/2019
An Indiana casino magnate last year treated Gov. Eric Holcomb to two private-jet flights and directed six-figure sums to Holcomb’s biggest 2016 campaign donor, all while pushing for changes to the state’s gaming laws that would benefit his new business. Rod Ratcliff, chief Executive Officer of Spectacle Entertainment, flew Holcomb to meetings in Colorado and Arizona that were hosted by the source of that campaign money, the Republican Governors Association. The flights gave Ratcliff and his business partners hours of exclusive access to the governor, who will have final say over their plans to move two Gary casinos to more lucrative locations. One of the flights was just a day before Ratcliff announced plans to acquire those two casinos.
Kentucky: Lobbyists Can’t Donate to Candidates but Give Big to Parties – Especially the GOP
Louisville Courier Journal – Tom Loftus | Published: 4/3/2019
State law forbids a lobbyist from donating to the campaigns of candidates for the Kentucky General Assembly. But lobbyists can give to the state political parties, which use much of that money to support their candidates for the Legislature. An examination of the state Republican Party’s finance reports shows ta relatively small group of lobbyists provide a significant and steady cash flow, even for an organization with a growing number of big donors, as it has gained total control of the two chambers of the Legislature and the governor’s office.
Maryland: Baltimore Mayor Pugh to Take Leave of Absence in Midst of ‘Healthy Holly’ Book Controversy
MSN – Ian Duncan and Yvonne Wenger (Baltimore Sun) | Published: 4/1/2019
Baltimore Mayor Catherine Pugh announced she is taking an indefinite leave of absence for health reasons, just as a political scandal intensifies over what critics call a “self-dealing” book-sales arrangement that threatens her political career. Kaiser Permanente disclosed it paid $114,000 for about 20,000 copies of Pugh’s self-published paperbacks for children featuring a young girl named Healthy Holly aimed at promoting exercise and good nutrition. In 2017, the city’s spending board, which Pugh controls, awarded a $48 million contract to Kaiser to provide health benefits to city employees. Since 2011, Pugh has received $500,000 selling her illustrated books to the University of Maryland Medical System while she served on its board.
Missouri: Federal Investigation Plunges St. Louis County into Chaos
St. Louis Post-Dispatch – Jacob Barker and Jeremy Kohler | Published: 3/30/2019
The sudden delivery of wide-ranging subpoenas to St. Louis County, signaling an investigation by the U.S. attorney into the activities of County Executive Steve Stenger’s administration, has plunged the county, and the future of the region’s government, into chaos. Stenger’s ability to lead the county government, already limited by his toxic relationship with county lawmakers, now lies wounded. County employees openly speculate about who might be under investigation and for what conduct. Some county employees are concerned for their jobs, and all attention will shift to producing records to satisfy the subpoena.
New Jersey: Top Guns. These Are the Highest-Paid Lobbyists in N.J.
Newark Star Ledger – Ted Sherman (NJ Advance Media) | Published: 4/2/2019
Spending on lobbying in New Jersey hit $89.4 million last year, a decline after a record year for spending in 2017. But the number of registered lobbyists in the state, and how much they made, increased over the past year. Overall, 35 lobbyists made $200,000 or more, but many likely earned even more than what was reported. Lobbyists in New Jersey are not required to account for all their income. They do not report fees from lobbying local officials, and they do not have to list fees if their firm provides public relations advice to a client. Lobbyist Dale Florio described his role as “getting you in the door so you can make your case.” He said corporations and unions have thousands of members to make their voices heard to state officials. But for others, Florio said lobbying offers another avenue to make points to elected officials.
New Mexico: Governor Signs Bill for Ethics Commission
Santa Fe New Mexican – Andrew Oxford | Published: 3/28/2019
New Mexico Gov. Michelle Lujan Grisham signed into law a bill setting detailed guidelines for a new state ethics commission. Voters authorized an ethics commission by statewide ballot last year in the wake of a string of high-profile public corruption scandals. That vote still left lawmakers to determine the commission’s investigative powers and the extent of public access to documents and proceedings. Work in assembling the commission begins July 1, with a six-month startup period. The commission will have oversight of state officials and employees as well as candidates for state offices, lobbyists, and state contractors. New Mexico had been one of only six states without an independent ethics commission.
New York: In State Budget, More on Voting, Little on Ethics, and Half-Baked Campaign Finance Reform
Gotham Gazette – Samar Khurshid | Published: 4/2/2019
Government reform advocates are disappointed by what they see as half-measures on campaign finance reform and the exclusion of broader improvements to state procurement processes and ethics reforms in the New York state budget. The budget deal included additional measures and funding for voting, election, and campaign finance reforms approved in previous months. The headline, though, was the compromise to mandate a binding commission that is meant to create a public financing program for state elections and must issue a report by December 1. One proposal that was approved prohibits lobbyists, PACs, labor unions, and an individual registered as an independent expenditure committee from giving loans to candidates and political committees.
North Carolina: NC GOP Chairman, Major Political Donor Indicted in Alleged Bribery Scheme
WRAL – Travis Fain | Published: 4/2/2019
A federal grand jury indicted North Carolina Republican Party Chairperson Robin Hayes, along with major Republican campaign donor Greg Lindberg and two of his associates, on conspiracy and bribery charges for their attempts to influence state Insurance Commissioner Mike Causey. The alleged scheme would have traded more than $1 million in political contributions in exchange for regulatory help at the Insurance Department. The indictment mentions another person was in contact with Lindberg and Causey – “Public Official A.” Lindberg made a $150,000 contribution in February 2018 to a committee supporting the official at the same time Lindberg allegedly asked the politician to help sway Causey. A joint fundraising committee for U.S. Rep. Mark Walker logged a $150,000 donation from Lindberg on February 17, 2018.
Pennsylvania: Vestige of the Past, State House’s ‘Lobbyist Room’ Vanishes
AP News – Marc Levy | Published: 3/30/2019
The “lobbyist room” at the Pennsylvania House is now off limits to lobbyists. For decades, lobbyists in the room could watch floor proceedings on television, print out copies of legislation, and send messages to lawmakers in the chamber through a House page who was effectively assigned full-time to this task during floor sessions. The House’s chief administrative official said he decided the room is not appropriate and shut it down. The move comes after Gov. Tom Wolf challenged lawmakers last year to adopt the kind of gift ban that he imposed on the executive branch. Still, it seems to signal no broader effort to hold lobbyists at arm’s length, and the perk was not dramatically different than lobbyists’ accommodations in some other Capitols.
Virginia: ‘It Just Went Poof’: The strange aftermath of Virginia’s cascade of political scandals
MSN – Campbell Robertson (New York Times) | Published: 4/1/2019
In the space of a week in February, the public was stunned by revelations about each of the three highest statewide elected officials in North Carolina: the racist photograph in Gov. Ralph Northam’s medical school yearbook; accusations of sexual assault against Lt. Gov. Justin Fairfax; and Attorney General Mark Herring’s appearance in blackface at a party in college. Protesters and news crews swarmed the statehouse. Calls for resignations came from fellow Virginia Democrats, Republicans, and even 2020 presidential candidates. And then? “It just went poof – it’s like it never happened,” said Richmond resident Natalie Draper. Virginians have various theories as to how this surreal normalcy set in.
April 4, 2019 •
Thursday’s LobbyComply News Roundup
Campaign Finance National: “At the Federal Election Commission, No Watchdog for the Watchdogs” by Dave Leventhal for Center for Public Integrity Connecticut: “SEEC Says Campaigns Can’t Pay for Child Care” by Mark Pazniokas for Connecticut Mirror Elections National: “Liberals Infuriated […]
Campaign Finance
National: “At the Federal Election Commission, No Watchdog for the Watchdogs” by Dave Leventhal for Center for Public Integrity
Connecticut: “SEEC Says Campaigns Can’t Pay for Child Care” by Mark Pazniokas for Connecticut Mirror
Elections
National: “Liberals Infuriated by Pro-Incumbent House Dem Policy” by Reid Wilson for The Hill
National: “Trump’s Takeover of the Republican Party Is Almost Complete” by Alexander Burns and Jonathan Martin for New York Times
Illinois: “Lori Lightfoot Elected Chicago Mayor, Making Her the First African-American Woman to Lead the City” by Bill Ruthhart for Chicago Tribune
Ethics
National: “An Intruder Brought Malware to Mar-a-Lago, Which Experts Have Warned Was Vulnerable” by Isaac Stanley-Becker (Washington Post) for MSN
National: “House Panel Votes to Authorize Subpoenas to Obtain Full Mueller Report” by Rachael Bade (Washington Post) for San Jose Mercury News
California: “Years After FBI Probe, SF Pay-to-Play Case Ends in Plea Deals” by Michael Barber for San Francisco Examiner
North Carolina: “NC GOP Chairman, Major Political Donor Indicted in Alleged Bribery Scheme” by Travis Fain for WRAL
Washington D.C.: “Jack Evans Scandal Revives Push to Ban Outside Jobs for D.C. Council Members” by Fenit Nirappil for Washington Post
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