January 16, 2019 • Written by Jim Sedor

Wednesday’s LobbyComply News Roundup

Campaign Finance National: “New Members, Meet the ‘Slush Fund’” by Stephanie Aikin for Roll Call National: “At Trump’s Inauguration, $10,000 for Makeup and Lots of Room Service” by Maggie Haberman, Sharon LaFraniere, and Benn Protess (New York Times) for MSN […]

January 15, 2019 • Written by Jim Sedor

Tuesday’s LobbyComply News Roundup

Campaign Finance California: “Downtown L.A. Development Is a Focus of FBI Corruption Probe” by Emily Alpert Reyes and David Zahniser for Los Angeles Times Oklahoma: “Stitt Inauguration Donors May Not Be Revealed Until Summer” by Trevor Brown for Oklahoma Watch […]

January 14, 2019 • Written by Jim Sedor

Monday’s LobbyComply News Roundup

Campaign Finance Washington: “Split Court: Local initiatives subject to disclosure rule” by Gene Johnson (Associated Press) for KOMO Ethics National:”Prosecutors Examining Ukrainians Who Flocked to Trump Inaugural” by Kenneth Vogel, Scott Shane, Mark Mazzetti, and Iuliia Mendel (New York Times) […]

January 11, 2019 • Written by Jonathan Spontarelli

News You Can Use Digest – January 11, 2019

Federal: Feds’ GoFundMe Campaigns Open a ‘Minefield’ of Ethical Questions During Shutdown Federal News Network – Nicole Ogrysko | Published: 1/8/2019 The Office of Government Ethics said employees on unpaid furlough due to the government shutdown remain covered by federal […]

Federal:

Feds’ GoFundMe Campaigns Open a ‘Minefield’ of Ethical Questions During Shutdown
Federal News Network – Nicole Ogrysko | Published: 1/8/2019

The Office of Government Ethics said employees on unpaid furlough due to the government shutdown remain covered by federal ethics policies. Many of those on furlough are exploring taking outside jobs or applying for unemployment benefits. Some are soliciting donations on “GoFundMe” pages to ease the financial uncertainty of likely missed paychecks. But existing rules open a “minefield” of questions about how the employees can ask for contributions during shutdown furloughs, if at all, said Virginia Canter, an attorney for Citizens for Responsibility and Ethics in Washington. Typically, federal employees cannot accept gifts from “prohibited sources,” or organizations that do business with the employee’s agency. With that in mind, federal employees soliciting shutdown donations would need to ensure the source of every contribution.

How a Little-Known Democratic Firm Cashed in On the Wave of Midterm Money
Washington Post – Michelle Ye Hee Lee and Anu Narayanswamy | Published: 1/8/2019

Mothership Strategies, a little-known and relatively new digital consulting firm, collected tens of millions of dollars from a tide of small donations that flowed to Democrats during the 2018 midterm elections. The firm’s rapid ascendancy as one of the highest-paid vendors of the election since its launch speaks to how lucrative the explosion of small-dollar contributions has been for a group of political consultants who saw the wave of cash coming and built a business model to capitalize. But Mothership Strategies’ rise also has sparked consternation in Democratic circles because of its aggressive and sometimes misleading tactics. Some call its approach unethical, saying the company profits off stoking fear of Donald Trump and making the sort of exaggerated claims they associate with the president.

Manafort Intended for Polling Data to Go to 2 Ukrainian Oligarchs, a Source Says
Pittsburgh Post-Gazette – Katelyn Polantz and Evan Perez (CNN) | Published: 1/9/2019

Serhiy Lyovochkin and Rinat Akhmetov, two Ukrainian oligarchs who had paid Paul Manafort for years for his political work in their country, were the intended recipients of American polling data that Manafort shared with Konstantin Kilimnik during the 2016 presidential campaign, a person familiar with the matter said. Special counsel Robert Mueller’s team has been circling Lyovochkin and Akhmetov’s dealings with Manafort, as they were both generous backers of Manafort’s Ukrainian lobbying work. Manafort spokesperson Jason Maloni confirmed Manafort expected to receive the $2.4 million in income from his Ukrainian political backers, including Lyovochkin and Akhmetov. But the money was meant to reimburse old debts that predated the Trump campaign, spokesman Maloni added, and it was not a quid pro quo for the polling data.

Supreme Court to Hear Cases on Partisan Gerrymandering in Maryland, N. Carolina
Salt Lake Tribune – Robert Barnes (Washington Post) | Published: 1/4/2019

The U.S. Supreme Court once again will take up unresolved constitutional questions about partisan gerrymandering, agreeing to consider rulings from two lower courts that found congressional maps in North Carolina and Maryland so extreme they violated the rights of voters. The North Carolina map was drawn by Republicans, the Maryland districts by the state’s dominant Democrats. The Supreme Court has never found a state’s redistricting map so infected with politics that it violates the Constitution. It passed up the chance last term to settle the issue of whether courts have a role in policing partisan gerrymandering, sending back on technical rulings challenges to a Republican-drawn plan in Wisconsin, and the challenged Maryland map. But there will be a new set of justices considering the issue.

From the States and Municipalities:

Alabama: Secret Campaign to Use Russian-Inspired Tactics in 2017 Ala. Election Stirs Anxiety for Democrats
Denver Post – Craig Timberg, Tony Romm, Aaron Davis, and Elizabeth Dwoskin (Washington Post) | Published: 1/6/2019

A secret effort to influence the 2017 U.S. Senate election in Alabama used tactics inspired by Russian disinformation teams, including the creation of fake accounts to deliver misleading messages on Facebook to help elect Democrat Doug Jones in the deeply red state. But unlike the 2016 presidential campaign when Russians worked to help elect Donald Trump, the people behind the Alabama effort, dubbed Project Birmingham, were Americans. Now Democratic operatives and a research firm known to have had roles in Project Birmingham are distancing themselves from its most controversial tactics. Jones’s upset victory over Roy Moore in all likelihood resulted from other factors, political analysts say. But news of the effort has underscored the warnings of disinformation experts who have said threats to transparent political discourse in the age of social media are as likely to be domestic as foreign.

California: As Fires Ravaged California, Utilities Lobbied Lawmakers for Protection
MSN – Ivan Penn (New York Times) | Published: 1/5/2019

As more wildfires are traced to equipment owned by California’s investor-owned utilities, the largest, Pacific Gas and Electric, could ultimately have to pay homeowners and others an estimated $30 billion for causing fires over the last two years. Realizing their potential fire liability is large enough to bankrupt them, the utility companies are spending tens of millions of dollars on lobbying and campaign contributions. Their goal is a law that would allow them to pass on the cost of wildfires to their customers in the form of higher electricity rates. After an earlier lobbying push, legislators have already voted to protect the companies from having to bear the cost of fires in 2017, and utilities are seeking the same for 2018.

California: Irvine City Council Strengthens Lobbyist Policy
Voice of OC – Spencer Custodio | Published: 1/10/2019

The Irvine City Council strengthened its conflict-of-interest policy by adding a provision to its contracts which says if a council member or employee lobbied on behalf of a city contractor, the contract can be voided with cause and the city will get reimbursed. While there was a similar contract provision preventing employment of a city official by a city contractor, it did not address lobbying services – paid or unpaid.

Connecticut: Under the Influence: Marijuana industry seeks ruling on legality of political contributions in Connecticut
Hartford Courant – Neil Vigdor | Published: 1/8/2019

The pioneers of Connecticut’s growing medical marijuana industry say they should be allowed to donate to lawmakers who could make the state the next lucrative frontier for recreational cannabis. State election regulators came to the opposite conclusion on an informal basis early last year, finding medical marijuana growers and dispensaries are subject to the same ban on campaign contributions by state contractors under state law. But those business owners are disputing that “licensing arrangements” between the state and 18 dispensaries are contracts. They petitioned the State Elections Enforcement Commission for a formal ruling on their status.

Georgia: State Ethics Director Put on Paid Leave Over Porn, Misconduct Allegations
WSB – Richard Belcher | Published: 1/8/2019

The Georgia Government Transparency and Campaign Finance Commission voted to put Executive Director Stefan Ritter on paid leave and conduct an investigation after allegations he had pornography on his work computer. There also were complaints about his job performance, including irregular work hours. Ritter, who worked for over a decade as an assistant attorney general before taking over the commission, has been credited with cleaning up the troubled agency, reducing backlogs, and helping get raises for staff.

Maryland: Federal Judge Stops Enforcement of Maryland Election Law
Courthouse News Service – Edward Ericson Jr. | Published: 1/4/2019

A federal judge enjoined Maryland from enforcing a law aimed at preventing foreign interference in state elections while a challenge by a group of newspapers plays out in court. The Online Electioneering Transparency and Accountability Act requires platforms with more than 100,000 monthly visitors to publish the names and contact information for any purchaser of a “qualifying paid digital communication,” along with the price paid, among other provisions. Some of the information the law demands is proprietary, such as how many people the ads reached. Much of the rest, U.S. District Court Judge Paul Grimm found, is duplicative.

Michigan: Whitmer Choice Raises Questions About State’s Conflicts of Interest Laws
Detroit Free Press – Paul Egan | Published: 1/7/2019

Michigan Gov. Gretchen Whitmer named Orlene Hawks as director of the Department of Licensing and Regulatory Affairs (LARA), an agency with responsibilities that include oversight of Michigan’s new marijuana industry, liquor licensing, the regulation of utilities, and licensing of doctors and hospitals. Hawks is married to Michael Hawks, an owner and principal of Government Consultant Services Inc., which represents many clients affected by the policies and rulings of LARA and its sub-agencies. An ethics expert said the potential issues raised by the situation underline a need for stronger financial disclosure and conflict-of-interest laws in Michigan.

Montana: Montana’s Dark Money Detective
Pacific Standard – Jimmy Tobias | Published: 1/9/2019

With a history of ant-corporate populism and intimate electoral campaigns, Montana is the sort of place where someone can run for office without a lot of money and still stand a chance. It is a state with just a million people and little tolerance for big money meddling in elections. As the former commissioner of political practices, Jonathan Motl set an example for other states that are also contending with the influence of unaccountable election spending. A ruling by the state Supreme Court upholding a conviction against former Sen. Art Wittich for corruption and violating campaign finance laws was a vindication and a climactic moment in Montana’s anti-corruption efforts.

Oklahoma: Stitt Unveils Plan to Address Potential Business Conflicts
Oklahoma Watch – Paul Monies | Published: 1/7/2019

Incoming Oklahoma Gov. Kevin Stitt is asking the state attorney general to review his plan to step away from his mortgage company as it becomes a bank and to approve a conflict-of-interest policy for his family investments. Stitt is facing potential conflicts-of-interest related to Gateway Mortgage Group, which he founded, and possibly some real estate and other personal investments. The first step in this shift from private businessperson to public official has to do with the state banking commission. Stitt pledged to have no contact with the state banking commissioner on Gateway-related matters, as it is converting to a bank. The governor appoints the banking commissioner and members of the state banking board.

Oregon: BOLI Finds ‘Substantial Evidence’ of Sexual Harassment at Oregon Capitol
Portland Oregonian – Ted Sickinger and Hillary Borrud | Published: 1/3/2019

Oregon labor regulators found “substantial evidence” of sexual harassment at the Capitol, concluding that lawmakers and administrators have known about it for years and did little to stop it. The Bureau of Labor and Industries released its findings after a five-month investigation, as well as a laundry list of allegations gleaned from witness interviews conducted by agency investigators, legislative analysts, and an attorney hired by the Legislature to investigate the harassment claims. The report concludes the most powerful lawmakers and administrators in the Capitol mishandled, downplayed and ignored allegations of sexual harassment, including inappropriate touching, sexually suggestive language, and the lopsided power dynamics that enabled the behavior.

Washington: From Campaign Consultant to Lobbyist and Adviser: The firm that has Seattle Mayor Jenny Durkan’s ear
Seattle Times – Daniel Beekman and Lewis Kamb | Published: 1/6/2019

Political operatives Sandeep Kaushik and Kelly Evans helped Jenny Durkan win Seattle’s mayoral race in 2017. As Durkin embarks on her second year, they and their company, Sound View Strategies, have emerged as key players at City Hall. They successfully ran the mayor’s campaign for a $600 million education levy. Durkan’s major-initiatives director, office administrator, and chief of staff all are former Sound View employees. Kaushik describes himself and Evans as members of Durkan’s informal “kitchen cabinet,” even as they lobby her administration and advocate for corporate clients such as Comcast and Airnub. The mayor downplayed Sound View’s clout. Her ties to the company are known, and the city’s requirements are adequate to protect against real and perceived conflicts, Durkin said.

January 10, 2019 • Written by Allyson Smith

Thursday’s LobbyComply News Roundup

Campaign Finance National: “How a Little-Known Democratic Firm Cashed in On the Wave of Midterm Money” by Michelle Ye Hee Lee and Anu Narayanswamy for Washington Post Connecticut: “Under the Influence: Marijuana industry seeks ruling on legality of political contributions […]

January 9, 2019 • Written by Jim Sedor

Wednesday’s LobbyComply News Roundup

Campaign Finance Oklahoma: “Stitt Unveils Plan to Address Potential Business Conflicts” by Paul Monies for Oklahoma Watch Elections National: “Paul Manafort Shared 2016 Polling Data with Russian Employee, According to Court Filing” by Rachel Weiner and Spencer Hsu (Washington Post) […]

January 8, 2019 • Written by Jim Sedor

Tuesday’s LobbyComply News Roundup

Campaign Finance National: “Federal Judge Stops Enforcement of Maryland Election Law” by Edward Ericson Jr. for Courthouse News Service Michigan: “Snyder Veto Spree Takes Down GOP Power Play Proposal, 40 Other Bills” by Jonathan Oosting for Detroit News Pennsylvania: “Former […]

January 7, 2019 • Written by Jim Sedor

Monday’s LobbyComply News Roundup

Campaign Finance National: “House Democrats Propose Major Campaign Finance Reforms in First Bill of Session” by Carl Evers-Hillstrom for Center for Responsive Politics Illinois: “Campaign Money Tied to Ald. Edward Burke’s Alleged Extortion Scheme Was Intended for County Board President […]

January 4, 2019 • Written by Jonathan Spontarelli

News You Can Use Digest – January 4, 2019

Federal: Mueller Fuels Foreign Lobbying Crackdown The Hill – Morgan Chalfont and Alex Gangitano | Published: 12/31/2018 The Federal Agents Registration Act dates to 1938, when it was passed to ensure transparency of foreign influence in the American political process […]

Federal:

Mueller Fuels Foreign Lobbying Crackdown
The Hill – Morgan Chalfont and Alex Gangitano | Published: 12/31/2018

The Federal Agents Registration Act dates to 1938, when it was passed to ensure transparency of foreign influence in the American political process as a result of fears over Nazi and communist propaganda. It has been amended twice since then but is essentially the same law. It requires that “agents of foreign principals,” typically lobbyists or consultants who work for foreign governments or political parties, register and file regular reports with the Justice Department on their activities. They also must file copies of materials they distribute for any foreign entities and keep a record of their activities. Criminal prosecutions under the law have been few and far between, but special counsel Robert Mueller’s investigation has changed that, at least for the time being.

Sexism Claims from Bernie Sanders’s 2016 Run: Paid less, treated worse
MSN – Sydney Ember and Katie Benner (New York Times) | Published: 1/2/2019

Accounts of sexual harassment and demeaning treatment, as well as pay disparity, in U.S. Sen. Bernie Sanders’s 2016 presidential campaign have circulated in recently in emails, online comments, and private discussions among former supporters. As Sanders tries to build support for a second run at the White House, his perceived failure to address this issue has damaged his progressive bona fides, nearly a dozen former state and national staff members said. It also has raised questions among them about whether the senator can adequately fight for the interests of women, who have increasingly defined the Democratic Party, if he runs again for the presidential nomination. The former staff members said complaints about mistreatment and pay disparity during and just after the campaign reached some senior leaders of the operation.

Trump Effect: How out-of-state money fueled Democratic House wins in 2018
USA Today – Maureen Groppe and Christopher Schnaars | Published: 12/29/2018

The Democrats who captured the U.S. House by flipping 43 districts from red to blue in the November election received on average more than half of their large-dollar campaign funds from outside their states. By contrast, defeated Republicans in those districts collected only about one-third of their itemized funds from outside their states. The money that poured into House races from out-of-state donors was another example of the nationalization of the 2018 midterm elections that were partly a referendum on President Trump’s first two years in office. Analysts said the data reinforced other signs that opposition to Trump helped to motivate Democratic donors.

From the States and Municipalities:

Alabama: Ethics Revision Commission Could Give Legislators Multiple Choices
Montgomery Advertiser – Brian Lyman | Published: 12/27/2018

A commission working on proposed changes to the state’s ethics law might deliver multiple options to legislators next year. Tom Albritton, executive director of the Alabama Ethics Commission, said the final proposals will likely include a range of options on different issues for lawmakers to take up, should they decide to revise ethics laws in the legislative session that begins next March. The Code of Ethics Clarification and Reform Commission has taken up a number of issues, though it has spent a great deal of time on the definition of “principal,” or a person or entity who hires a lobbyist.

Delaware: Former Delaware Lawmaker Melanie George Smith’s New Career Draws Complaints of Self-Dealing
Wilmington News Journal – Scott Goss | Published: 1/2/2019

Former Rep. Melanie George Smith has launched a consulting firm that critics say is benefiting from a Delaware “sustainability” industry that she helped create during her final months in office. Her business, Sustainable World Strategies, is prompting questions about the rules that are supposed to stop state lawmakers from crafting legislation that benefits them personally. Smith rejects the notion that her business has anything to do with the legislation she sponsored. “They are completely separate,” she said. “And when you introduce legislation in Dover that is broadly beneficial to everybody, there is no conflict whatsoever.”

Florida: Lauren Book Proposes ‘Swearing In’ Legislative Speakers
Florida Politics – Jim Rosica | Published: 1/2/2019

Florida Sen. Lauren Book filed the Truth in Government Act for the 2019 legislative session that would require people appearing at legislative committees to be sworn in before speaking. Those making a “false statement that he or she does not believe to be true, … in regard to any material matter, commits a felony of the third degree,” Senate Bill 58 says. But the legislation exempts lawmakers themselves, staff members, and children. The majority of speakers before legislative panels are paid lobbyists. “I don’t think it’s necessary because it confuses 1st Amendment-right advocacy with investigatory or legal proceedings that require testimony under oath,” one lobbyist said.

Idaho: Why Does This Charity Golf Event Hosted by Idaho’s Governor Cost More Than It Gives Out?
Idaho Statesman – Audrey Dutton | Published: 1/3/2019

The annual Governor’s Cup tournament is a multiday golf and sporting affair that raises money for college and trade-school scholarships in Idaho. The event is hosted by the governor and first lady and is attended by the state’s political and business movers and shakers. Almost every year of the past decade, the nonprofit that runs the tournament has spent at least twice as much money on throwing the annual event than it has awarded in financial aid. Marcus Owens, a former director of the IRS’s division for tax-exempt organizations, said the event’s cost calls into question its primary purpose. “It sure sounds like this is an opportunity for lobbyists to do what lobbyists do outside the eyes of reporters or the general public,” said Owens.

Illinois: Feds Charge Powerful Ald. Edward Burke with Corruption
Chicago Tribune – Jason Meisner | Published: 1/3/2019

Chicago Ald. Edward Burke was charged with attempted extortion in a federal criminal complaint. It alleges Burke tried to extort a company that owns fast-food restaurants in the Chicago area and needed help with permits for a remodeling job. The complaint also alleged Burke illegally solicited a campaign donation from an executive with the restaurant company for another politician, who is not named in the charges. The criminal charge was stunning even for a city with a long history of public corruption. While dozens of his city council colleagues have been convicted and sent to prison over the decades, Burke was largely seen as too clever or sophisticated to be caught. He had faced federal scrutiny several times before but always escaped charges.

Missouri: No More Free Lunch for Missouri Lawmakers. Literally.
St. Louis Post-Dispatch – Kurt Erickson | Published: 1/3/2019

Although it could face a test in court, a possible repeal by frustrated lawmakers, and varied legal opinions from ethics regulators, the so-called Clean Missouri ballot measure approved by voters in November places a five-dollar cap on gifts lawmakers can receive from lobbyists. That means fewer lobbying groups offering free food to lawmakers and legislative staffers during the busy crush of the legislative session that begins January 9 and runs through May 17. It means no more dinners being purchased by lobbyists for lawmakers at local restaurants, nor free tickets to baseball games, concerts, or golf tournaments. For lobbyists, lawmakers, and restaurateurs in Jefferson City, the changes are significant.

Missouri: State Seeks Dismissal of Lobbyist Gift Ban Lawsuit
St. Louis Post-Dispatch – Kurt Erickson | Published: 12/26/2018

Missouri Attorney General Josh Hawley is asking a federal judge to dismiss a lawsuit that sought to overturn a ban on workers in the governor’s office receiving gifts from lobbyists. Gov. Mike Parson in November rewrote an order issued by his predecessor, Eric Greitens, that had prohibited all gifts from lobbyists. The change was aimed at allowing groups to distribute informational booklets to employees of the state’s chief executive. In October, the Institute for Justice said the ban on gift-giving violated the organization’s First Amendment rights to free speech because it prohibits them from giving workers in Parson’s office two books. Hawley’s office said the change makes the lawsuit unnecessary.

New Jersey: New Jersey Is the Latest Battleground in National Redistricting Fight
Politico – Matt Freidman | Published: 12/28/2018

Democrats who control the New Jersey Legislature attempted to fast track a constitutional amendment to change the way the state draws its legislative districts. The plan would have inserted a formula into the state constitution almost certainly cementing Democratic majorities for decades to come. But to a new wave of liberal activists, it reeked of an attempted power grab. Their party’s redistricting amendment gave them a new target and joined by good government groups and Republican state lawmakers who stood to see their already diminished clout reduced further, they held rallies in front of the Statehouse to oppose it. Redistricting is drawing more and more mainstream attention, with New Jersey the latest state to battle over the drawing of district lines in the run-up to 2020.

New York: N.Y.’s New Attorney General Is Targeting Trump. Will Judges See a ‘Political Vendetta?’
MSN – Jeffery Mays (New York Times) | Published: 12/31/2018

Letitia James, the incoming New York attorney general, has suggested that President Trump could be charged with obstruction of justice, and implied that foreign governments channeled money to his family’s real estate holdings, which she characterized as a “pattern and practice of money laundering.” Democratic attorneys general across the country have used their offices to confront Trump. But since her election, James has opened herself up to criticism that she has gone too far in allowing politics to shape her agenda. Her strident attacks on the president could potentially threaten the legal standing of cases that her office brings against Trump, his family members or their business interests, legal experts said.

North Carolina: NC Lawmakers Override Veto of Bill That Makes Allegations of Campaign Finance Violations Secret
Raleigh News and Observer – Craig Jarvis | Published: 12/27/2018

Republican lawmakers held off North Carolina Gov. Roy Cooper’s attempt to muster enough Democrats to thwart an override of his veto of an elections law bill. A large majority of Democrats had voted to approve the bill, as it reflected changes in state election law that Cooper achieved in a lawsuit. But despite negotiations with legislative leaders over how to accomplish those changes, Cooper focused the argument on keeping accusations of campaign finance violations secret. Cooper opposed a provision in the bill that will require allegations of campaign finance wrongdoing to be probed by the State Ethics Commission and its findings to be referred to the State Board of Elections. The elections board could then refer the matter to local prosecutors to consider bringing criminal charges, all in confidence.

South Dakota: Undisclosed Donors Gave $95K in SD Governor Race
Rapid City Journal – Seth Tupper | Published: 12/30/2018

An out-of-state PAC that ran advertisements supporting Kristi Noem and opposing Billie Sutton in the race for South Dakota governor received $95,000 from undisclosed sources during the final week of the campaign. The money was raised by a corporation, apparently a 501(c)4 nonprofit, that does not disclose its donors. The corporation then gave the money to a super PAC, which appears to have spent most or all the money on independent expenditures in the race. The contributions from the corporation to the super PAC occurred late enough in the campaign that they did not show up on the super PAC’s campaign finance reports until a post-election report, which was filed on December 6.

January 3, 2019 • Written by Jim Sedor

Thursday’s LobbyComply News Roundup

Campaign Finance National: “Congress Unlikely to Stop Super PACs from Hiding Donors” by Maggie Severns for Politico National: “Potential 2020 Candidates Confront the Need for Campaign Cash, and Fewer Sources of It” by Matt Viser for Washington Post National: “Trump […]

January 2, 2019 • Written by Jim Sedor

Wednesday’s LobbyComply News Roundup

Campaign Finance New Mexico: Legislators Challenge Campaign Finance Rules by Dan McKay for Albuquerque Journal North Carolina: NC Lawmakers Override Veto of Bill That Makes Allegations of Campaign Finance Violations Secret by Craig Jarvis for Raleigh News and Observer Elections […]

December 21, 2018 • Written by Jonathan Spontarelli

News You Can Use Digest – December 20, 2018

Federal: Lawmakers Push Review of New Member Events After Complaints Over Lobbyists at Harvard Orientation Washington Post – Jeff Stein | Published: 12/14/2018 Harvard invited lobbyists to speak at its orientation program for incoming members of Congress and paid for […]

Federal:

Lawmakers Push Review of New Member Events After Complaints Over Lobbyists at Harvard Orientation
Washington Post – Jeff Stein | Published: 12/14/2018

Harvard invited lobbyists to speak at its orientation program for incoming members of Congress and paid for travel and board for the newly elected members of the House to attend. Under House rules, that arrangement would typically be subject to an extensive review by the ethics committee before members could be cleared to attend. But Harvard’s program was not for sitting members of Congress, it was for members to-be, who will not be sworn in until January. Lawmakers say they are planning to review House ethics rules for incoming members, bringing new scrutiny to Harvard’s decades-long orientation program, as well as a broader review of how lobbyists reach incoming freshman lawmakers.

Targets of U.S. Sanctions Hire Lobbyists with Trump Ties to Seek Relief
MSN – Kenneth Vogel (New York Times) | Published: 12/11/2018

As the Trump administration has increasingly turned to sanctions, travel restrictions, and tariffs to punish foreign governments as well as people and companies from abroad, targets of those measures have turned for assistance to K Street’s corridor of law, lobbying, and public relations firms. The work can carry reputational and legal risks, since clients often come with toxic baggage and the U.S. Treasury Department restricts transactions with entities under sanctions. As a result, it commands some of the biggest fees of any sector in the influence industry. And some of the biggest payments have been going to lobbyists, lawyers, and consultants with connections to Trump or his administration.

From the States and Municipalities:

Arizona: Bennett Loses Court Bid to Get Public Financing for Gubernatorial Campaign
Arizona Capitol Times – Howard Fischer (Capitol News Srevices) | Published: 12/14/2018

A judge rejected the latest bid by Ken Bennett to get public financing for his failed gubernatorial bid in Arizona, or at least reimburse himself for the money he spent. Maricopa County Superior Court Judge Teresa Sanders acknowledged Bennett said he did have enough valid signatures on five-dollar donation forms to qualify for $839,704 which was available for candidates in the Republican primary for governor earlier this year. Bennett said he fell short only because some county election officials incorrectly classified some of them as invalid. But Sanders said there is nothing in Arizona law that provides an opportunity for a candidate to “rehabilitate” previously disqualified contribution slips.

Florida: ‘He Got Screwed’: Gillum absent from indictment after DeSantis bashed him as corrupt
Politico – Marc Caputo | Published: 12/12/2018

City Commissioner Scott Maddox and political consultant Janice Paige Carter-Smith were indicted on bribery and other charges in the first results to emerge from a years-long investigation into corruption in Tallahassee. Florida Gov. Rick Scott issued an executive order suspending Maddox from the commission. Maddox had served as mayor, while Carter-Smith was his chief of staff and business partner. The indictment alleges they conspired to run two companies as one, known as Governance, in a far-reaching racketeering scheme. It did not name Andrew Gillum, who was Tallahassee’s mayor at the time and was accused on the gubernatorial campaign trail this year of being tied to the suspected wrongdoing the FBI was investigating.

Kansas: Kansas Lawmakers Can Quickly Become Lobbyists, but Many States Make Them Wait
Wichita Eagle – Jonathan Shorman | Published: 12/20/2018

Kansas has no law stopping legislators from immediately becoming a lobbyist after they leave office, unlike the majority of states. At least 38 states have some kind of waiting period for lawmakers who want to become lobbyists. Supporters of the waiting periods say they are needed to stop lawmakers from being influenced by potential future employers while they are in the Legislature. Others question their usefulness. U.S. Rep. Lynn Jenkins’ move to set up a lobbying firm while still in Congress drew attention to Kansas’ lack of a waiting period. While Jenkins is a federal lawmaker, her new firm plans to lobby at both the state and federal level. Federal rules require Jenkins to wait a year before lobbying at the federal level.

New Hampshire: Sununu, Inner Circle Received Thousands from Lobbyist-Funded Nonprofit
Manchester Union Leader – Todd Feathers | Published: 12/15/2018

Lobbying firms and corporations donated to New Hampshire Gov. Chris Sununu’s inaugural party committee, helping raise $450,000. But when all the festivities were finished, there was still money left over in the accounts of The Sununu Inaugural Celebration Inc., a 501c(4) organization set up to pay for the parties. And most of the surplus funds have since been paid out to Sununu, his immediate family, and his closest advisers. The transactions create the appearance of conflicts-of-interest and improper profiteering, tax attorneys and ethics experts say, and raise a number of legal questions. The explanations for the payments are vague. Reports filed with the secretary of state’s office simply state the purposes as “expenses” or “travel.”

New Jersey: GoFundMe Violates Election Law, but Candidates Keep Using It
Bergen Record – Nicholas Katzban | Published: 12/17/2018

In a race for seats on the Rutherford school board, Kevin Wilson and Hesham Mahmoud challenged three incumbents in November’s election. The two received $375 in contributions through GoFundMe, which they reported to the New Jersey Election Law Enforcement Commission (ELEC). But no matter the amount, the commission said use of the site for political fundraising is prohibited due to the difficulty in tracing the source of the donations. GoFundMe’s compliance director, Stephanie Olivo, said ELEC’s policy on crowdfunding is guided by an advisory opinion issued in 2001. The statement does not address crowdfunding sites, specifically, but does outline the services that must be available through an online vendor, that would ensure each transaction complies with election law.

New York: JCOPE’s New Regs Constrained by Settlement
Albany Times Union – Chris Bragg | Published: 12/19/2018

A settlement was reached in a lawsuit challenging the Joint Commission on Public Ethics’ (JCOPE) new regulations on lobbying. Under the terms of the agreement, the 92 pages of rules are defined simply as a “statement” for how the agency plans to administer and enforce state lobbying law. New York Attorney General Barbara Underwood’s office agreed the regulations will not in and of themselves have the force and effect of law. That makes the guidelines different from some regulations traditionally created by state agencies, violations of which can on their own be the basis for penalties. But JCOPE Executive Director Seth Agata argued that, in practical terms, the settlement would have virtually no effect, and the agency still planned to vigorously enforce the regulations as planned.

North Carolina: Secrecy Provision in Elections Board Bill Prompted Cooper Veto
WRAL – Matthew Burns | Published: 12/18/2018

North Carolina Gov. Roy Cooper said he will veto legislation that again overhauls the state elections board because it also would make investigations of potential campaign finance violations confidential. The bill comes amid an investigation by the State Board of Elections and Ethics Enforcement into suspicious absentee voting in the Ninth Congressional District, and Cooper said lawmakers should be more concerned about building public confidence in elections than in protecting politicians who bend the rules. House Bill 1029 also would place a four-year statute of limitations on investigations, with the clock starting once the board knows, or should have known, about a violation of the state’s campaign finance rules.

North Dakota: Wary of New Ethics Rules, North Dakota Lobbyists Rethink Plans for Legislator Receptions
Bismarck Tribune – John Hageman | Published: 12/13/2018

Some lobbying groups are rethinking plans to hold events with state lawmakers after North Dakota voters passed a ballot measure establishing new ethics rules in the state constitution. Industry group leaders cited language in Measure 1 that prevents lobbyists from giving gifts to public officials. Although that provision is not effective for two years and includes exceptions for educational and social settings meant to “advance opportunities for North Dakota residents to meet with public officials,” lobbyists said they were taking a conservative approach to the new rules.

Oklahoma: State Rule Would Disclose Hidden Backers of Groups Trying to Affect Legislation
Oklahoma Watch – Paul Monies | Published: 12/17/2018

The Oklahoma Ethics Commission is proposing to close a gap in law that keeps certain funding and spending on efforts to influence legislation a secret. Although sources and amounts of money are typically required to be disclosed when groups seek to influence an election involving candidates or state ballot questions, little must be revealed when a group tries to push or oppose legislation. The proposed rule would mandate certain disclosures for groups that pay for communications about pending bills. Commission Executive Director Ashley Kemp said the proposal just adds another category for what is called “indirect lobbying” at the Legislature.

Pennsylvania: Pennsylvania Ethics Commission Fines Workers Comp Law Firm’s Lobbying Wings for Late Disclosure of Influence Peddling
Allentown Morning Call – Steve Esack | Published: 12/7/2018

A pair of lobbying groups connected to the law firm Pond Lehocky Stern Giordano violated Pennsylvania’s lobbying law and were fined. If at least $2,500 is spent to lobby legislation, the lobbyists involved are given 10 days to register and must file quarterly expenditure reports. The State Ethics Commission determined PA Works Now and Citizens to Protect Our Pennsylvania failed to register and did not report $115,800 spent on professional lobbyists, online posts, billboards, and flyers aimed at defeating two Workers’ Compensation bills. PA Works Now did not register its lobbying activities until 388 days after it started. PA Works Now must pay a fine of $13,580 and Citizens to Protect Our Pennsylvania was fined $15,500.

South Carolina: SC Lawmaker Benefiting from Law Change That Opened Top State Agency Slot for Him
Charleston Post and Courier – Jamie Lovegrove | Published: 12/10/2018

As South Carolina lawmakers considered reauthorizing the state’s land preservation agency this year, they proposed restricting legislators from taking over the department for one year after leaving office. But in the final version of the bill, the one-year waiting period for the Conservation Bank was removed. Now, just a few months after the bill passed, a lawmaker who has supported the agency for years stands to benefit from that last-minute change. State Rep. Mike Pitts, who oversaw the agency’s budget and headed the House ethics committee, announced he is retiring to take over the Conservation Bank.

Vermont: As Ethics Panel Director Steps Down, Differing Explanations Are Offered
VTDigger.org – Mark Johnson | Published: 12/14/2018

Vermont Ethics Commission Executive Director Brian Leven has resigned but he and the panel’s chairperson have offered different reasons why the separation occurred. Leven said he believed the commission exceeded its authority in an advisory opinion involving Gov. Phil Scott issued earlier this year. After taking the executive director job last December, he said he resigned because he and the commission were at odds over what powers the Legislature intended to give the board. Commission Chairperson Madeline Motta said the panel and Leven parted ways because of his “work performance.”

Washington: Facebook, Google to Pay Washington $450,000 to Settle Lawsuits Over Political-Ad Transparency
Seattle Times – Jim Brunner | Published: 12/19/2018

Google and Facebook agreed to pay $455,000 for violating Washington’s campaign finance law. Google will pay $217,000 and Facebook will pay $238,000 in response to two lawsuits filed by state Attorney General Bob Ferguson that accused the companies of not obeying the state law requiring them to maintain detailed records about who is paying for online political ads on their platforms. The lawsuits came after the state’s Public Disclosure Commission issued regulations related to a new law and passed an emergency rule that clarified digital ad companies like Google and Facebook are subject to state law requiring them to maintain publicly available information about political ads, just like television stations and other media.

December 20, 2018 • Written by Jim Sedor

Thursday’s LobbyComply News Roundup

Campaign Finance Michigan: “Legislation Shielding Non-Profit Political Donors Heads to Snyder” by Beth LeBlanc for Detroit News Mississippi: “Companies Asked a Mississippi Senator to Refund Donations. They Are Still Waiting.” by Nicholas Fandos for New York Times Vermont: “Did Dunne’s […]

December 19, 2018 • Written by Jim Sedor

Wednesday’s LobbyComply News Roundup

Campaign Finance Arizona: “Bennett Loses Court Bid to Get Public Financing for Gubernatorial Campaign” by Howard Fischer (Capitol News Srevices) for Arizona Capitol Times New Jersey: “GoFundMe Violates Election Law, but Candidates Keep Using It” by Nicholas Katzban for Bergen […]

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News You Can Use Digest – December 20, 2018

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