On February 7, a bill was introduced in the U.S. House of Representatives to require publicly traded corporations to disclose all expenditures made for political activities.

House Bill 1053, the Corporate Political Disclosure Act of 2019, would require publicly traded corporations to disclose political expenditures, through the Securities and Exchange Commission, to their shareholders and to the general public.

The requirement would include reporting dues or other payments to trade associations that are, or could reasonably be anticipated to be, used or transferred to another association or organization for use on political activities.

The legislation, brought by Rep. Salud Ortiz Carbajal, was originally introduced in the prior congressional session, but never made it out of the House Committee on Financial Services.

Happy Monday! Four stories from last week about new lobbying laws, campaign finance limits and gift laws you don’t want to miss!

Campaign Finance

National: “FEC Raises Contribution Limits for 2020” by Reid Wilson for The Hill

California: “Downtown L.A. Developer Donated $50,000 Before Pivotal Vote Involving High-Rise Project, Records Show” by David Zahniser for Los Angeles Times

Ethics

National: “Prosecutors Probing Enquirer after Bezos Report” by Michael Sisak, Michael Balsamo, and Zeke Miller (Associated Press) for MSN

Florida: “City Manager Goad: City email to non-profits asking for tickets ‘out of step’” by Karl Etters for Tallahassee Democrat

Hawaii: “Former OHA Trustee Rowena Akana Hit with $23K Ethics Fine” by Anita Hofschneider for Honolulu Civil Beat

Missouri: “Missouri House Passes Bill on Closing Public Records” by Summer Ballentine (Associated Press) for Jefferson News Tribune

Virginia: “Virginia Sen. Tommy Norment Was an Editor for VMI Yearbook Filled with Racist Photos and Slurs” by Katherine Hafner, Elisha Sauers, and Dave Ress for The Virginian-Pilot

Lobbying

Colorado: “High Cost of Influence: $33 million spent last year lobbying Colorado lawmakers” by Eric Garcia for Denver Post

The Massachusetts Office of Campaign and Political Finance released draft regulations this week that would reduce the amount of money a union can contribute to a candidate annually from $15,000 to $1,000.

A state law banning corporate contributions was upheld by the high court this year, but the ruling noted Massachusetts law was unclear regarding contributions from unions.

The draft regulation would also cap union contributions at $500 to a PAC, and $5,000 to a political party.

A public hearing on the draft regulations will be held on March 15 with the final regulations expected by May.

National:

Inaccurate Claims of Noncitizen Voting in Texas Reflect a Growing Trend in Republican States
Stamford Advocate – Amy Gardner (Washington Post) | Published: 2/6/2019

When Texas officials announced in January that as many as 58,000 noncitizens may have voted illegally in state elections over nearly two decades, top Republicans, including President Trump, quickly warned about the prevalence of voter fraud and the need to crack down on it. But just as quickly, the numbers stopped adding up. The secretary of state’s office called local election officials to say thousands of people on the list were in fact American citizens, eligible to vote. The episode is the latest in bungled attempts by states to show that huge numbers of noncitizens are registered to vote and have cast ballots in U.S. elections.

‘It’s the Human Way’: Corruption scandals play out in big cities across U.S.
New York Times – Richard Fausset, Monica Davey, and Tim Arango | Published: 2/5/2019

Four of America’s largest cities – Atlanta, Los Angeles, Chicago, and Philadelphia – are under the cloud of major federal corruption investigations. The probes raise questions about whether there can be any lasting cure for the chronic corruption problems that seem to dog big cities, so often dominated by a single party or political machine. The Chicago and Los Angeles metropolitan areas are the two most corrupt in the U.S., based on the number of federal public corruption convictions from 1976 to 2016. Philadelphia comes in at number eight. Atlanta did not make the top 10, but the city’s political atmosphere is influenced by the conviction of former Mayor Bill Campbell on tax evasion charges stemming from an earlier corruption investigation.

Federal:

Firms Recruited by Paul Manafort Investigated Over Foreign Payments
MSN – Kenneth Vogel (New York Times) | Published: 2/5/2019

Federal prosecutors in New York have been investigating payments to three law and lobbying firms recruited by Paul Manafort to help improve the image of the president of Ukraine. The previously unreported interviews are among the latest developments in the investigation of key figures who worked at the three firms: Mercury Public Affairs, the Podesta Group, and Skadden, Arps, Slate, Meagher & Flom. The case has drawn interest in Washington in part because of the prominence of the three main figures, each of whom has played high-profile roles in politics and lobbying. But it has also sent shock waves through the lobbying industry by underscoring an aggressive legal crackdown on lobbyists and lawyers who do lucrative work representing foreign governments without registering as foreign agents.

K Street in Overdrive as Investigations Ramp Up
The Hill – Alex Gangitano | Published: 2/7/2019

Lawmakers this year are vowing to press companies across diverse industries on a number of hot-button issues, including how technology companies are handling consumer data, how the nation’s companies have benefited from the tax law, and how drug makers set their prices. For corporations, a public inquiry into their practices, often with top executives hauled before Congress and cameras, is a worrying prospect. More than ever, businesses are coming to lawyers on K Street to help them handle those unique challenges. Handling congressional investigations requires a complex team with lobbyists who can provide insight into what policymakers are thinking, as well as lawyers who know how to best protect a client’s rights.

Trump Inaugural Committee Ordered to Hand Over Documents to Federal Investigators
MSN – Maggie Haberman and Ben Protess (New York Times) | Published: 2/4/2019

Federal prosecutors in New York delivered a wide-ranging request for documents related to donations and spending by President Trump’s inaugural committee. Investigators showed interest in whether any foreigners illegally donated to the committee, as well as whether committee staff members knew such contributions were illegal, asking for documents laying out legal requirements for donations. Federal law prohibits foreign contributions to federal campaigns, PACs, and inaugural funds. Prosecutors also requested all documents related to vendors and contractors with the inaugural committee. The subpoena showed the investigations surrounding Trump, once centered on potential ties to Russia during the 2016 election, have spread beyond the special counsel’s office to include virtually all aspects of his adult life.

From the States and Municipalities:

California: Sebastian Ridley-Thomas’ Work as a Lobbyist Sparks Criticism in California Capitol
Los Angeles Times – Melody Gutierrez | Published: 2/4/2019

Former California Assemblyperson Sebastian Ridley-Thomas registered as a lobbyist in January, just weeks after an investigation supported claims that he sexually harassed two legislative staffers in 2016. When the allegations were made public, Ridley-Thomas’ first client, the Los Angeles Unified School District, canceled his four-week, $15,000 contract for work in Sacramento. While the Legislature spent much of the past year creating new sexual harassment policies and procedures for lawmakers and its employees, the conduct of lobbyists was largely unaddressed. A lobbyist found to have sexually harassed a legislative staffer or lawmaker might be restricted from going to certain parts of the Capitol, but the Legislature’s power is limited beyond that, said Assemblyperson Laura Friedman.

Connecticut: When the Governor’s Adviser Is Married to a Lobbyist
Connecticut Mirror – Mark Pazniokas | Published: 2/1/2019

Colleen Flanagan Johnson is the senior adviser to Connecticut Gov. Ned Lamont and is married to Michael Johnson, a lobbyist at Sullivan & LeShane. In consultation with the Office of State Ethics and the Lamont administration, Flanagan Johnson said she will not meet with any of her husband’s two dozen clients, and she and her husband will not talk about his clients and the issues on which he lobbies. Flanagan Johnson and Ryan Drajewicz, the governor’s chief of staff, also will decide on a case by case basis if she needs to completely recuse herself from any issue “to avoid even the appearance of a potential conflict-of-interest.” Under the ethics code, which is established by state laws that have not changed in decades, there is no legal bar to Flanagan Johnson acting on any issue of importance to her husband or his employer.

Florida: A Florida Politician Allegedly Made a Habit of Licking Men’s Faces. She’s Now Resigned.
Washington Post – Antonia Noori Farzan | Published: 2/6/2019

Madeira Beach Commissioner Nancy Oakley is being accused of sexually harassing a former city manager. The Florida Commission on Ethics said Oakley possibly violated state law because she was “exhibiting inappropriate behavior” when she licked Shane Crawford’s face at a fishing tournament. The report said there was testimony from multiple witnesses saying Oakley also touched Crawford inappropriately, and that she was intoxicated. Since the issue was brought to light, others have said Oakley behaved in a similar manner. The sponsor of the fishing tournament where Oakley allegedly licked the city manager said she had licked his face and the faces of volunteers at other fishing tournaments. Oakley resigned to avoid being fired.

Indiana: A State Election Panel Won’t Investigate Brian Bosma. Opponents Say the Process Is Rigged.
Indianapolis Star – Tony Cook and Kaitlin Lange | Published: 2/7/2019

The Indiana Election Commission declined to investigate House Speaker Brian Bosma’s use of campaign money to uncover unflattering information about a woman who claims she had a sexual encounter with him 27 years ago when she was an intern. A separate House Ethics Committee complaint is still pending. Those who filed the complaints say the process so far appears to be rigged in Bosma’s favor. Both the election and ethics proceedings have taken place largely outside public view and without any notice to those who filed the complaints, including the former intern and her attorney. Bosma and his team were permitted to submit dozens of pages of legal arguments and other materials to the election commission with no opportunity for the person who filed the complaint to respond.

Kentucky: After Democratic Kickback Scheme, State Lawmaker Pushes for Ethics Bill
Louisville Courier-Journal – Tom Loftus | Published: 2/5/2019

The bribery, kickbacks, and illegal campaign money revealed in the federal convictions of political operatives Tim Longmeyer and Jim Sullivan demand the General Assembly strengthen laws over those who lobby the state’s executive agencies, Kentucky Senate President Robert Stivers said. Stivers said the legislation he introduced, Senate Bill 6, would be as a step toward reform by requiring disclosure of fees paid to lobbyists who attempt to influence executive agencies, just as fees paid to those who lobby the Legislature have been required to be disclosed for many years. Senate Bill 6 would also clarify what is already in state law – that an executive lobbyist cannot be paid on a contingency fee basis.

Massachusetts: Massachusetts Campaign Finance Regulators Prepared to Lower Unions’ Donation Limit
MassLive.com – Shira Schoenberg | Published: 2/4/2019

The Office of Campaign and Political Finance released draft regulations that would decrease the amount of money a union can contribute to a candidate in Massachusetts from $15,000 a year to $1,000 a year. Under state law until now, unions and trade associations could donate up to $15,000 to a candidate. Individuals can contribute up to $1,000 and businesses cannot give anything. Two business owners challenged the ban in court. They argued that businesses and unions should be subject to the same campaign finance restrictions. The Supreme Judicial Court upheld the ban on corporate contributions but noted state law is unclear regarding the different treatment of unions.

Missouri: Barred from Lobbying for Six Months, Ex-Missouri Rep Returns Anyway to Sway Lawmakers
Kansas City Star – Hunter Woodall | Published: 1/31/2019

Less than two months after resigning from office, former state Rep. Kevin Corlew returned to the Missouri Capitol to testify for a national organization in what one watchdog said is an act of stealth lobbying. Some experts question whether his appearance goes against the state’s “revolving door” law prohibiting former lawmakers from quickly returning to lobby their former colleagues in the Legislature. Corlew lost his re-election bid last fall. He then resigned in December, before his term was up, specifically to avoid a new law banning lawmakers from returning to the Capitol as lobbyists for two years after leaving office.

New Mexico: Bill Would Reveal the Cost of a Free Lunch for Lawmakers
Albuquerque Journal – Dan McKay | Published: 1/31/2019

Three proposals this year in the New Mexico Legislature would require more thorough reporting of how lobbyists are spending to influence lawmakers and the executive branch. House Bill 133 would require lobbyists to disclose the specific bills they lobbied for or against. House Bill 140 would require principles to file reports at the beginning of the session estimating how much they expect to spend on lobbying, including the compensation to the lobbyists themselves. Senate Bill 191, which was sent to Gov. Michelle Lujan Grisham, would fix a loophole that allows lobbyists to spend $100 or less on, for example, buying lunch for a lawmaker without ever having to report such costs.

North Dakota: Legislative Lobbyists Feel Their Purpose Is Misunderstood
Inforum.com – Diane Newsberry (North Dakota Newspaper Association) | Published: 2/3/2019

North Dakota Senate Majority Leader Rich Wardner said he had concerns about legislation that aims to limit the influence of lobbyists. The legislation comes as a result of last year’s ballot Measure 1, which amended the state constitution to set more guidelines about legislative ethics. Wardner cited wording in Measure 1 which may mean that if a citizen who comes to the Capitol to testify on behalf of themselves spends more than $201 in the process, that person would be classified as a lobbyist. Lobbyists feel they are often misrepresented, especially in public talks about ethics. Scott Meske, a lobbyist with public affairs firm Laventure, said his profession’s primary goal is to be a translator between his clients and lawmakers.

Virginia: Crisis Escalates in Virginia; Top 3 Democrats Under Fire
Associated Press – MSN | Published: 2/6/2019

Virginia Attorney General Mark Herring acknowledged he put on dark makeup and wore a wig while an undergraduate of the University of Virginia in 1980, becoming the second statewide official to admit imitating an African-American. Within hours, Vanessa Tyson put out a detailed statement describing how Lt. Gov. Justin Fairfax sexually assaulted her in 2004. Fairfax denies the allegations. The revelations came less than one week after the disclosure of a racist photograph on the yearbook page of Gov. Ralph Northam led to demands for his resignation. The string of scandals could have a domino effect on state government: If Northam and Fairfax fall, Herring would be next in line to become governor. After Herring comes House Speaker Kirk Cox.

Today, the Federal Election Commission (FEC) published its price index adjustments for expenditure limitations and the federal lobbyist bundling disclosure threshold.

The lobbyist bundling disclosure threshold has increased for 2019 from $18,200 to $18,700. This threshold amount is adjusted annually.

Federal law requires authorized committees of federal candidates, leadership political action committees (PACs), and political party committees to disclose contributions bundled by lobbyists and lobbyists’ PACs.

Additionally, the FEC published its adjusted Coordinated Party Expenditure Limits for political parties for 2019.

Today, the Federal Election Commission (FEC) published the 2019-2020 election cycle contribution limits, which have been indexed for inflation.

As required by the Bipartisan Campaign Reform Act of 2002, the FEC must adjust certain contribution limits every two years.

The individual and nonmulticandidate PAC contribution limit to federal candidates has increased from $2,700 to $2,800 for both primary and general elections, allowing for a total of $5,600 for a federal candidate.

The limits on contributions by individuals to national party committees has increased from $33,900 to $35,500 per calendar year.

Individuals may now contribute $106,500 per calendar year to committees of a national political party for presidential nominating conventions, to committees of a national political party for preparation for and the conduct of election recounts and contests and other legal proceedings, and to committees of a national political party for the construction, purchase, renovation, operation, and furnishing of one or more buildings for party headquarters.

The Federal Election Commission (FEC) has extended its deadline for seeking public comments on proposals for rules establishing specific time periods for the submission of public comments on drafts of advisory opinions.

The comment period was originally scheduled to end on February 1. Because of the recent partial government shutdown, the FEC chose to extend the comment period for 30 days, ending on March 4.

In 2016, a Petition for Rulemaking was received by the FEC requesting the Commission modify 11 CFR §112.3 and codify procedures establishing specific time periods for public comments on drafts of advisory opinions before the Commission votes on the drafts.

The petition, filed by Make Your Laws PAC, Inc., Make Your Laws Advocacy, Inc., Make Your Laws, Inc., and Dan Backer, Esq., additionally asks the Commission to amend existing regulations to require that, when the Commission makes public multiple drafts of an advisory opinion, the Commission indicate the differences between those drafts.

The FEC also extended the comment deadline to March 4 for the rulemaking concerning the regulatory definition of contribution.

After the comment period is over, the FEC will consider the merits of the petition.

Campaign Finance

Colorado: “Democrats Want More Disclosure of Campaign Advertising, But Dark Money Remains an Issue” by Sandra Fish for Colorado Sun

Ethics

National: “‘It’s the Human Way’: Corruption scandals play out in big cities across U.S.” by Richard Fausset, Monica Davey, and Tim Arango for New York Times

National: “Case Closed Against Sen. Bob Menendez After Committee Finds That He Paid Back All Gifts” by Rodrigo Torrejon for Bergen Record

National: “Elizabeth Warren Apologizes for Calling Herself Native American” by Annie Linskey and Amy Gardner (Washington Post) for MSN

National: “Anti-Corruption, Campaign Finance Reform Bills Preview Likely 2020 Campaign Theme” by Kate Ackley for Roll Call

Virginia: “Democrats Grapple with Fairfax Assault Accusation in #MeToo Era” by Jenna Portnoy, Laura Vozzella, and Antonio Olivo for Washington Post

Virginia: “Virginia Attorney General Herring Says He Wore Blackface in College” by Gregory Schneider and Laura Vozzella for Washington Post

Wyoming: “As Lawmakers File Financial Disclosures, House Wants More” by Angus Theumer Jr. for WyoFile.com

Lobbying

Kentucky: “After Democratic Kickback Scheme, State Lawmaker Pushes for Ethics Bill” by Tom Loftus for Louisville Courier-Journal

Oklahoma: “Senate Leader Puts Brakes on Lobbyist Parking at Capitol” by Barbara Hoberock for Tulsa World

The state Senate introduced two bills amending political contributions and gift disclosure.

Senate Bill 215 limits political contributions from contractors to a candidate to $2,400 per election and contributions to a business entity or political action committee supporting a candidate to $5,000 per election.

In addition, the state Senate also introduced Senate Bill 216 requiring public officials to disclose gifts from a friend with a value of $250 or more.

If passed, both bills would go into effect within 60 days.

Campaign Finance

National: “Trump Inaugural Committee Ordered to Hand Over Documents to Federal Investigators” by Maggie Haberman and Ben Protess (New York Times) for MSN

Massachusetts: “Massachusetts Campaign Finance Regulators Prepared to Lower Unions’ Donation Limit” by Shira Schoenberg for MassLive.com

Ethics

National: A Lobbyist at the Trump Tower Meeting Received Half a Million Dollars in Suspicious Payments” by Emma Loop, Tanya Kozyreva, Anthony Cormier, John Templon, and Jason Leopold for BuzzFeed News

Kentucky: “The Curious Case of a Kentucky Cybersecurity Contract” by Daniel Desrochers (Lexington Herald-Leader) and Jessica Huseman for ProPublica

Maryland: “Olszewski Proposes Public Financing for Baltimore County Executive, Council Elections” by Alison Knezevich for Baltimore Sun

New York: “Former Assemblyman Joseph Errigo and Lobbyist Robert Scott Gaddy Indicted in Bribery Plot” by Gary Craig and David Andreatta for Rochester Democrat and Chronicle

Lobbying

National: “Lean Job Market for Dems on K Street” by Alex Gangitano for The Hill

National: “Firms Recruited by Paul Manafort Investigated Over Foreign Payments” by Kenneth Vogel (New York Times) for MSN

New Mexico: “Governor Signs Lobbyist Disclosure Bill, Others Martinez Had Vetoed” by Andrew Oxford (Santa Fe New Mexican) for NMPolitics.net

Arkansas State Senators introduced several ethics bills on February 4, 2019.

If passed, Senate Bill 260 prohibits direct contributions between PACs and Senate Bill 259 prevents a person elected or appointed to a constitutional office from forming more than one PAC.

Senate Bill 256 prohibits an elected state official from registering as a lobbyist in any jurisdiction while serving as an elected state official.

Senate Bill 249 increases the fines for violating ethics laws the Arkansas Ethics Commission may levy at violators from $2,000 to $3,500.

Additionally, the State Representatives introduced House Bill 1374.

House Bill 1374 prohibits a former Legislator from registering as a lobbyist or entering into employment as the director of an educational cooperative or area agency on aging for two years after the expiration of his or her term of office.

Campaign Finance

Illinois: “Aldermen Named in Secretly Recorded Chat Admit Sending Business to Reyes’ Firm” by Fran Spielman for Chicago Sun-Times

Mississippi: “Lt. Governor Candidate Hughes Sidesteps Campaign Finance Reform Law He Pushed for in 2017” by Luke Ramseth for Jackson Clarion-Ledger

Ethics

Arkansas: “State Lawmakers Roll Out Ethics Reform Package to Address Capitol Corruption” by Wesley Brown for talkbusiness.net

Louisiana: “Politics and the Suite Life for Saints Playoffs? Insiders Got Wish Granted by Gov. Edwards” by Tyler Bridges for New Orleans Advocate

Lobbying

Alabama: “Economic Developers Seek Extension, Expansion of Lobbying Exemption” by Brian Lyman for Montgomery Advertiser

California: “Sebastian Ridley-Thomas’ Work as a Lobbyist Sparks Criticism in California Capitol” by Melody Gutierrez for Los Angeles Times

Connecticut: “When the Governor’s Adviser Is Married to a Lobbyist” by Mark Pazniokas for Connecticut Mirror

New Mexico: “Bill Would Reveal the Cost of a Free Lunch for Lawmakers” by Dan McKay for Albuquerque Journal

Beginning Monday, February 4, through five calendar days following sine die adjournment, several actions regarding campaign contributions by lobbyist principals are prohibited in Oklahoma.

A lobbyist or lobbyist principal must not make a campaign contribution to a member of the legislature or a candidate for state legislative office; promise to make a campaign contribution for a member of the legislature or candidate for state legislative office; or solicit a campaign contribution for a member of the legislature or candidate for state legislative office.

A member of the Legislature or a candidate for state legislative office must not intentionally solicit a campaign contribution from a lobbyist or lobbyist principal; or intentionally accept a campaign contribution from a lobbyist or lobbyist principal.

A contribution from a lobbyist or lobbyist principal to a member of the legislature or a candidate for legislative office that has not been deposited before February 4 must be returned to the contributor.

This statutory blackout period does not prevent a limited Political Action Committee (PAC) from making one or more contributions to a candidate committee up to the limits allowed under the ethics rules provided the PAC is not represented by a lobbyist.