Campaign Finance

National: “Independents Uneasy About Taking Cash, Even from Indie Group” by Marina Villeneuve (Associated Press) for St. Louis Post-Dispatch

California: “It’s an Election Year, and California’s Campaign Watchdogs Are Busy Fighting Among Themselves” by Taryn Luna for Sacramento Bee

Elections

National: “Voting Rights Advocates Used to Have an Ally in the Government. That’s Changing.” by Michael Wines (New York Times) for MSN

Michigan: “Michigan Senate Winner Still Shrouded in Mystery Following Primary Shocker” by Jonathan Oosting for Detroit News

Ethics

National: “Representative Chris Collins Suspends Bid for Re-election After Insider Trading Charges” by Shane Goldmacher (New York Times) for WRAL

California: “Ethics Commission Levies Hefty Fine for ‘Egregious’ Conflict-of-Interest Violations” by David Garrick for San Diego Union Tribune

Hawaii: “Maui Ethics Board Warns Against Accepting Tournament Gifts” by Associated Press for Sacramento Bee

Lobbying

National: “Lax State Ethics Rules Leave Health Agencies Vulnerable to Conflicts” by Brianna Ehley, Sarah Karlin-Smith, Rachana Pradhan, and Jennifer Haberkorn for Politico

The Fair Political Practices Commission is considering changes to state campaign finance regulations.

The commission was asked to consider the permissible use of cryptocurrency, such as Bitcoin, for campaign contributions and expenditures. Though similar to cash, such currency is not issued by a governmental entity.

Issues expected to be discussed at a public hearing include banning the use of cryptocurrency for campaign purposes, limiting cryptocurrency contributions to the amount of contributions received in cash, requiring cryptocurrency contributions to be converted to cash, permitting committees to establish separate cryptocurrency accounts, or permitting cryptocurrency contributions as in-kind contributions without regard to cash limits.

A public hearing will be held September 20, 2018; written comments should be received by September 18.

You don’t want to miss this weeks News You Can Use Video Digest from State and Federal Communications intern Abigail Siegfried!

National:

Accused of Harassment, and Seeking Redemption at the Ballot Box
MSN – Julie Turkewitz and Alan Blinder (New York Times) | Published: 8/5/2018

Almost a year into an anti-harassment movement that has prompted a coast-to-coast cultural reckoning, more than a dozen politicians who have been accused of misconduct and are running for state legislative seats again anyway. Some candidates hope voters will accept their apologies. Others believe constituents will dismiss the allegations as untrue or deem them unimportant at a time when state Legislatures could play crucial roles either in advancing the Trump administration’s agenda or forming bulwarks against it. Apologies alone do not satisfy some of those who are working to ensure candidates accused of harassment do not retain political power.

Federal:

GOP Rep. Chris Collins Charged with Securities Fraud
Politico – Kyle Cheney, Jimmy Vielkind, and Laura Nahmias | Published: 8/8/2018

U.S. Rep. Christopher Collins was indicted on charges he used inside information about a biotechnology company to make illicit stock trades. The indictment charges Collins and his son, Cameron, and Stephen Zarsky, who is the father of Cameron Collins’ fiancée, with conspiracy, wire fraud, and other counts. Rep. Collins was Innate Immunotherapeutics’ largest shareholder and served on its board. He received an email from Innate’s chief executive alerting him the company’s highly touted drug had failed in clinical trials. Rep. Collins is alleged to have passed that information to his son, who notified Zarsky. Prosecutors say the three avoided about $768,000 in losses because of the information.

Judge’s Ruling Invalidates FEC Regulation Allowing Anonymous Donations to ‘Dark Money’ Groups
Politico – Brent Griffiths | Published: 8/4/2018

U.S. District Court Judge Beryl Howell struck down an FEC rule that allowed for anonymous donations to “dark money” groups. Howell ruled the FEC regulation allowing for those donors to remain anonymous fell below the standard that Congress meant to set when it passed laws on disclosing the sources of political donations. The ruling, which is likely to be appealed, means nonprofits could be required to reveal the identities of donors who give $200 or more toward affecting federal elections. The FEC has 45 days to issue temporary regulations that would require the so-called dark money groups to reveal more about their donors.

On Appeals Court, Kavanaugh Helped to Loosen Political Money Laws
National Public Radio – Peter Overby | Published: 8/8/2018

Supreme Court nominee Brett Kavanaugh has been on the U.S. Circuit Court for the District of Columbia, a frequent destination for cases involving the FEC. His decisions have effectively pulled the campaign finance system rightward, letting in more money with less regulation. He is been roughly in sync with Anthony Kennedy, the justice he once clerked for and now might succeed. “I think his record on money and politics should be right up there alongside the likelihood that he’ll overturn Roe or strike down the [Affordable Care Act],” said Chiraag Bains, director of legal strategies for the progressive advocacy group Demos.

From the States and Municipalities:

Arizona: Prosecutors Drop Bribery, Fraud Charges Against Former Utility Regulator, Others
Arizona Daily Star – Howard Fischer (Capitol Media Services) | Published: 8/7/2018

The U.S. Attorney’s Office for Arizona filed a motion to dismiss the indictment of a former utility regulator and others who were charged in a bribery case that ended in a mistrial. Jurors could not agree whether former utility regulator Gary Pierce, his wife, Sherry, lobbyist Jim Norton, and water company owner George Johnson had participated in a bribery scheme, as prosecutors alleged. Taryn Jeffries served as the jury foreperson. She said she was not surprised the government decided not to retry the case, which she considered “weak.” Jeffries said the jurors deadlocked at seven-to-five with those believing the defendants were guilty in the minority.

Florida: Panel Finds ‘Probable Cause’ That Five Municipal Officials, Five Lobbyists Violated State Ethics Laws
Florida Watchdog – John Haughey | Published: 8/3/2018

The Florida Commission on Ethics found probable cause that five lobbying firms filed inaccurate financial disclosure reports for 2016. The evidence turned up in random audits of executive branch lobbying firms. Among the commission’s notable actions was finding probable cause that former Madeira Beach City Manager Shane Crawford “accepted prohibited gifts from lobbyists, or alternatively, failed to report discounts valued at more than $100 as gifts.”

Kansas: ‘That Is a Conflict’: Kobach should recuse himself from a recount, experts say
Kansas City Star – Bryan Lowry, Steve Vockrodt, Jonathan Shorman, and Hunter Woodall | Published: 8/8/2018

Kansas Secretary of State Kris Kobach said he does not plan to recuse himself from a potential recount effort in the state’s Republican gubernatorial primary, despite being a candidate in the race. He said while his office oversees recounts, it does not directly participate in vote-counting, which is done at the county level. Kobach is leading Gov. Jeff Colyer by fewer than 200 votes in the closely watched race. If Colyer requests a hand recount after all provisional and mail-in ballots are counted, the secretary of state’s office will decide how much the governor’s campaign would have to pay for a recount. Kobach is not required by law to recuse himself, but legal and political experts said it would be in his best interest to do so.

Maine: After Court Battle, Maine’s Clean Elections Candidates to Get $1 Million In Campaign Funds
New England Public Radio – Steve Mistler | Published: 8/8/2018

Maine Gov. Paul LePage has complied with a court order that he release about $1.4 million in public campaign funding he had held up by refusing to sign routine financial orders. The move means about 120 candidates for the Legislature and one for governor will be getting money soon to help run their campaigns under the Maine Clean Election Act. Seven candidates and the Maine Citizens for Clean Elections sued LePage because he refused to release the funds, which would come from unspent money from the 2016 election cycle.

Missouri: Lawsuit Seeks to Knock Gerrymandering Issue Off Missouri’s November Ballot
St. Louis Post-Dispatch – Kurt Erickson | Published: 8/6/2018

An attorney who helped draw the boundaries of Missouri’s current legislative districts is trying to knock a question off the November ballot designed to end partisan gerrymandering. Eddie Greim said the proposed referendum violates a provision in the Missouri Constitution that prevents multiple subjects from being combined into one ballot proposal. The referendum asks whether voters want to tighten campaign contribution limits, ban lobbyist gifts, institute a two-year waiting period for lawmakers-turned-lobbyists, start a new redistricting system in 2020, and require lawmakers to adhere to the Sunshine Law.

Missouri: Slay’s Role as Lobbyist Raises Questions Over Conflict of Interest in Quest to Privatize Airport
St. Louis Public Radio – Melody Walker | Published: 8/6/2018

Francis Slay, just weeks before leaving office as mayor in April of last year, initiated the process that could lead to the privatization of St. Louis Lambert International Airport. In June of this year, Slay was hired by Ferrovial Airports, a company with experience in managing airports in Europe, and considered one of three top contenders in the bidding process for Lambert. Slay registered as a lobbyist in June “to lobby local elected officials.” His role as a lobbyist for a company seeking to lease the city’s largest asset through a process he initiated while mayor has raised some eyebrows, and some serious questions about a conflict-of-interest.

New York: BOE Approves Regulations That Could Hinder Independent Investigations
Albany Times Union – David Lombardo | Published: 8/8/2018

The New York State Board of Elections is moving to weaken the powers of an independent watchdog. The board voted to require the state’s independent enforcement counsel to justify in writing each subpoena they want to issue when investigating alleged campaign finance and election law cases. The board already had control over whether subpoenas could be issued in specific cases, but the new rule means the counsel must get approval on a subpoena-by-subpoena basis. Good-government groups criticized the move, which state Attorney General Barbara Underwood said will “gut” the counsel’s independence and lead to more corruption.

Texas: Dwaine Caraway Resigns from Dallas City Council, Pleads Guilty to Federal Corruption Charges
Dallas News – Robert Wilonsky, Holly Hacker, and Miles Moffeit | Published: 8/9/2018

Dallas Mayor Pro Tem Dwaine Caraway pleaded guilty to federal charges of receiving $450,000 in bribes and kickbacks and resigned from the city council. Caraway admitted taking the payments exchange for votes in favor of a camera company, Force Multiplier Solutions (FXS), which sought contract work with Dallas County Schools. At times, Robert Leonard, the owner of FXS, would pay Caraway in checks that he would cash at liquor stores and pawn shops. Leonard also admitted to paying Rick Sorrells, a former Dallas County school superintendent, more than $3 million in bribes and kickbacks. Their actions, prosecutors said, helped FXS secure more than $70 million in contracts and agreements with Dallas County Schools.

Texas: Texas Court Revives Lawsuit to Strip Ethics Regulators of Campaign, Elections Oversight
Dallas News – Lauren McGaughey | Published: 8/3/2018

A conservative advocacy group’s legal challenge to the Texas Ethics Commission took a leap forward after the lawsuit, dismissed in 2016 by a District Court judge, was revived by an appeals court. The decision by the Third Court of Appeals is the latest in an ongoing series of blows between Empower Texans, an influential group led by Michael Quinn Sullivan, and the commission, which years ago investigated the organization for alleged campaign law violations. The lawsuit asks whether the ethics panel has the legal authority to carry out many of its core functions, including enforcement and oversight of campaign finance rules.

Vermont: This 14-Year-Old Is Running for Governor Before He Can Even Vote
Washington Post – Kayla Epstein | Published: 8/8/2018

Unlike most states, Vermont has no age requirement for gubernatorial candidates, only a residency requirement. So, Ethan Sonneborn, who has lived in Bristol for 14 years – his entire life – makes the cut. Sonneborn declared his candidacy for governor back in August 2017, and then told his parents about it. After the secretary of state consulted with the attorney general, it was decided he would be allowed to run, but his parents would have to sign a form acknowledging they knew he was running and did not oppose him doing so.

Campaign Finance

National: “On Appeals Court, Kavanaugh Helped to Loosen Political Money Laws” by Peter Overby for National Public Radio

Oregon: “Campaign Spending Limits to Appear on Portland Ballots” by Gordon Friedman for Portland Oregonian

Elections

National: “Democratic Party’s Liberal Insurgency Hits a Wall in Midwest Primaries” by David Weigel for Washington Post

Ohio: “Republican Holds Slim Lead in Ohio Special Election for House Seat” by Jonathan Martin and Alexander Burns for MSN

Ethics

National: “GOP Rep. Collins Indicted, Charged with Securities Fraud” by Kyle Cheney for Politico

National: “Trump’s D.C. Hotel, a Clubhouse for His Fans, May Also Be a 5-Star Conflict of Interest” by Ana Schecter, Rich Gardella, and Cynthia McFadden for NBC News

Florida: “The Messy Political Drama Behind a Miami-Dade Street That Could Be Cleaner” by Douglas Hanks for Miami Herald

New Mexico: “State Audit Hits LANL Coalition and Candidate Romero Over Reimbursements” by Associated Press for Albuquerque Journal

North Carolina: “Lawyers Spar Over Whether Proposed Amendments Are Misleading” by Matthew Burns and Laura Leslie for WRAL

Lobbying

Arizona: “Prosecutors Drop Bribery, Fraud Charges Against Former Utility Regulator, Others” by Howard Fischer (Capitol Media Services) for Arizona Daily Star

Campaign Finance

National: “LePage Will Release Over $1 Million in Campaign Funds” by Marina Villeneuve (Associated Press) for Raleigh News and Observer

Montana: “Billings House Candidate Insists Loan from Public Service Commissioner Wasn’t Campaign Contribution” by Matt Hudson (Billings Gazette) for Montana Standard

Elections

National: “A ‘Rainbow Wave’? 2018 Has More L.G.B.T. Candidates Than Ever” by Liam Stack and Catie Edmonson (New York Times) for MSN

National: “Kris Kobach Used Flawed Research to Defend Trump’s Voter Fraud Panel, Experts Say” by Eli Rosenberg (Washington Post) for Chicago Tribune

Ethics

National: “Where Are Retiring Congress Members Going to Work? Loopholes Let Them Job Hunt in Secret” by Bill Theobald for USA Today

Michigan: “Thanedar Discloses Ties to Radio Hosts Who Promoted Him” by Jonathan Oosting for Detroit News

Missouri: “Lawsuit Seeks to Knock Gerrymandering Issue Off Missouri’s November Ballot” by Kurt Erickson for St. Louis Post-Dispatch

Tennessee: “Ousted Tennessee Lawmaker Fights for Retirement Benefits” by Daniel Jackson for Courthouse News Service

Lobbying

National: “Former Trump Campaign Aides Set Up Foreign Lobbying Shop in Corey Lewandowski’s Townhouse” by Soo Rin Kim for ABC News

Missouri: “Slay’s Role as Lobbyist Raises Questions Over Conflict of Interest in Quest to Privatize Airport” by Melody Walker for St. Louis Public Radio

On August 3, a federal court ruled a campaign finance disclosure regulation, followed for decades by the Federal Election Commission (FEC), failed to uphold disclosure requirements required by a federal statute. Chief Judge Beryl A. Howell of the United States District Court for The District of Columbia issued an order, in CREW v. FEC, vacating 11 C.F.R. §109.10(e)(1)(vi), but stayed the vacatur for 45 days to give time for the FEC to issue interim regulations comporting with the statutory disclosure requirements of 52 U.S.C. §30104(c). The court also has allowed the FEC 30 days to change an earlier FEC dismissal to conform with the court’s ruling.

The case originated because of independent expenditures made in a 2012 Ohio senate race by the non-political social-welfare nonprofit Crossroads Grassroots Policy Strategies (Crossroads GPS), an affiliate of the American Crossroads Super PAC. Crossroads GPS did not report donors when reporting its independent expenditures, while it acknowledged receiving contributions over $200, arguing the donors did not donate funds directly tied to any specific reported expenditure, as the FEC interpreted 11 C.F.R. §109.10(e)(1)(vi) to require. Non-political committees making independent expenditures over $250 in a calendar year must comply with disclosure obligations closely analogous to those imposed on political committees.

The vacated regulation required the identification of each person who made a contribution in excess of $200 to the person filing a disclosure report, including for non-political 501(c)(4) non-profits entities making independent expenditures, if the contribution was made for the purpose of furthering the reported independent expenditure. The court found the regulation, as construed and applied by the FEC, did not require the disclosure of donors, absent the donor’s express agreement that the funds be used for the specific expenditures reported to the FEC, even though the donor may otherwise support and in fact contribute for the purpose of funding those expenditures. The court found the regulation impermissibly narrows the mandated disclosure in 52 U.S.C. §30104(c)(2)(C), which requires the identification of such donors contributing for the purpose of furthering the non-political committee’s own express advocacy for or against the election of a federal candidate, even when the donor has not expressly directed that the funds be used in the precise manner reported.

Campaign Finance

National: “Judge’s Ruling Invalidates FEC Regulation Allowing Anonymous Donations to ‘Dark Money’ Groups” by Brent Griffiths for Politico

Elections

National: “Accused of Harassment, and Seeking Redemption at the Ballot Box” by Julie Turkewitz and Alan Blinder (New York Times) for MSN

National: “Beyond the N.R.A.: Maria Butina’s peculiar bid for Russian influence” by Matthew Rosenberg, Mike McIntire, Michael LaForgia, Andrew Kramer, and Elizabeth Dias (New York Times) for MSN

National: “President Admits Trump Tower Meeting Was Meant to Get Dirt on Clinton” by Michael Shear and Michael Schmidt (New York Times) for MSN

Ethics

Missouri: “Missouri Voters Get to Decide Medical Marijuana, Minimum Wage, Ethics Reform in Fall” by Alison Kite for Kansas City Star

New York: “What Has JCOPE Actually Done?” by Kay Dervishi for City and State

Texas: “Texas Court Revives Lawsuit to Strip Ethics Regulators of Campaign, Elections Oversight” by Lauren McGaughey for Dallas News

Lobbying

Florida: “Panel Finds ‘Probable Cause’ That Five Municipal Officials, Five Lobbyists Violated State Ethics Laws” by John Haughey for Florida Watchdog

Campaign Finance

National: Corporate Donations Are New Test for Democratic Candidates by Lisa Lerer (Associated Press) for Lowell Sun

National: Trump Legal Fund Remains Mum on Donors, Payments by Ken Doyle for Bloomberg Government

Elections

North Carolina: Arrested, Jailed and Charged with a Felony. For Voting. by Jack Healy (New York Times) for WRAL

Ethics

National: These Lame Ducks Still Fly – On the Taxpayer’s Dime – Often to Faraway Countries by Bill Theobald for USA Today

Michigan: ‘I’m Ready’: Towing titan Fiore hauled off to prison for 21 months by Tresa Baldas for Detroit Free Press

Oregon: Oregon House Speaker, Senate President Accused of Sexual Harassment Cover-up by Fellow Democrat by Gordon Friedman for Portland Oregonian

Wisconsin: Ethics Commission Picks New Administrator by The Associated Press for Wisconsin Law Journal

Lobbying

Canada: B.C. Watchdog Warns of Legal Loophole Letting Ex-Staffers Lobby Leaders by David Ball for Toronto Star

Campaign Finance

Tennessee: “Tennessee Sued Over PAC Contributions ‘Blackout Period’ Before Elections” by Joey Garrison for The Tennessean

Vermont: “Vermont Campaign-Finance Limits Survive Appeal” by Nick Rummell for Courthouse News Service

Elections

National: “Campaigns Enter Texting Era with a Plea: Will U Vote 4 Me 🙏??” by Kevin Roos for New York Times

Washington D.C.: “The Voters Approved It. Should Lawmakers Erase the Result? In D.C., a Debate About Democracy.” by Reis Thebault for Washington Post

Ethics

Alabama: “Alabama’s ‘Beach House Sheriff’ Is Selling His Beach House” by Connor Sheets for AL.com

California: “San Diego Council Sets Up Ballot Measure to Double the Salary for Council, Mayor” by David Garrick for San Diego Union Tribune

California: “Vindicated Colonies Corruption Figure Sues San Bernardino County, DA in Federal Court for $40 Million” by Joe Nelson for San Bernardino Sun

Michigan: “Macomb Politician Gets 20 Months in Prison for Corruption” by Robert Snell for Detroit News

New York: “Ethics Commissioner Wants Option to Make Status of Probes Public” by Chris Bragg for Albany Times Union

Lobbying

National: “Mueller Refers Foreign Agent Inquiries to New York Prosecutors” by Erica Orden (CNN) for MSN

National: “Lobbying Groups Join Fight Against Sexual Harassment” by Katherine Tully-McManus for Roll Call

Campaign Finance

Arizona: “Secretary of State Michele Reagan Again Delays Arizona Campaign Website Planned for 2015” by Dustin Gardiner for Arizona Republic

Michigan: “Former Michigan Secretary of State, Husband Agree to Pay $66K Fine” by Todd Spangler for Detroit Free Press

Minnesota: “Minnesota Political Donors Benefiting from State Campaign Refund Program” by Eric Chaloux for KSTP

Missouri: “Judge Strikes One St. Louis County Ballot Question on Campaign Contributions, but Other Two Are OK” by Jeremy Kohler for St. Louis Post-Dispatch

Pennsylvania: “Lehigh County Pay-to-Play Law Crimps Donations from Political Candidates’ Own Parties” by Tom Shortell for Allentown Morning Call

Elections

National: “Facebook Has Identified Ongoing Political Influence Campaign” by Nicholas Fandos and Kevin Roose for MSN

Ethics

National: “FEMA Personnel Chief Harassed Women, Hired Some as Possible Sexual Partners for Male Employees, Agency’s Leader Says” by Lisa Rein (Washington Post) for MSN

Illinois: “Company Used Convicted Chicago Schools Chief in ‘Highly Unethical’ Work to Win Millions in CPS Business, Watchdog Finds” by Juan Perez Jr. for Chicago Tribune

Lobbying

National: “Foreign Lobbying Overhauls Stall as Manafort Goes to Trial” by Kate Ackley for Roll Call

Campaign Finance

National: “Liberal Activists Embrace ‘Dark Money’ in Supreme Court Fight” by Michelle Ye Hee Lee (Washington Post) for Everett Herald

Elections

Georgia: “In Georgia Governor’s Race, a Defining Moment for a Southern State” by Kevin Sack and Alan Blinder for WRAL

Ethics

California: “Combatting Corruption: How effective is the political watchdog Jerry Brown helped create?” by Laurel Rosenhall and Robbie Short for CALmatters

New Mexico: “Investigators Move Sexual Harassment Case Against Legislator Forward” by Dan McKay and Dan Boyd for Albuquerque Journal

Lobbying

National: “From Six Homes to a City Jail: Paul Manafort, who redefined lobbying, faces trial” by Rachel Weiner and Tom Hamburger (Washington Post) for The News-Times

National: “At Prayer Breakfast, Guests Seek Access to a Different Higher Power” by Kenneth Vogel and Elizabeth Dias (New York Times) for WRAL

National: “EPA Chief Andrew Wheeler’s Past Lobbying Ties Attract Scrutiny” by Juliet Eilperin (Washington Post) for MSN

Alaska: “Ethics Reform Bill Signed into Law” by Staff for Cordova Times

State and Federal Intern Greta Conley delivers the fastest 2 minutes in government relations news in this weeks NYCU Video Digest!

Campaign Finance

California: County Won’t Name Everyone Who Broke Campaign Money Laws by Nick Gerda for Voice of OC

Illinois: Rauner Blasts Chicago Mayoral Candidate Willie Wilson’s Cash Giveaway, State Says He Didn’t Violate Campaign Rules by John Byrne and Rick Pearson for Chicago Tribune

Montana: Gov. Bullock Sues IRS Over Decision to Stop Requiring Some Tax-Exempt Groups to Identify Donors by Amy Beth Hansson (Associated Press) for Helena Independent Record

New York: Sugarman Cracks Down on Former-IDC Campaign Accounts by David Lombardo for Albany Times Union

Elections

National: There Is a Revolution on the Left. Democrats Are Bracing. by Alexander Burns (New York Times) for MSN

Ethics

National: Federal Judge Allows Emoluments Case Against Trump to Proceed by Ann Marimow, Jonathan O’Connell, and David Fahrenthold (Washington Post) for MSN

National: Wilbur Ross Actively Pushed to Add Citizenship Question to 2020 Census, Documents Show by Tara Bahrampour (Washington Post) for San Francisco Chronicle

Illinois: Lawmakers Question Possible Conflicts of Interest in Tollway Contracts by Mary Wisniewski for Chicago Tribune

Lobbying

National: Two Trump Allies, Seeing Unlimited Opportunity, Instead Drew Scrutiny by Kenneth Vogel, Mark Mazzetti, Maggie Haberman, and David Kirkpatrick (New York Times) for MSN

Pennsylvania: Board of Ethics Says Pro-Soda Tax Coalition Violated Lobbying Law by Alison Burdo for Philadelphia Business Journal

Redistricting

National: Drive Against Gerrymandering Finds New Life in Ballot Initiatives by Michael Wines (New York Times) for MSN