As the legislative session begins this week, South Carolina legislators are proposing several reforms to increase transparency.

An ongoing corruption probe has entered its fifth year, and six current or former lawmakers have been indicted thus far.

Rep. Gary Clary filed a bill that would require lawmakers to disclose any money they or their family members receive as part of an arrangement with an organization that lobbies state lawmakers.

Sens. William Timmons and Mike Fanning are sponsoring legislation that would grant the ethics commission direct access to campaign bank accounts, rather than lawmakers submitting reports on their political contributions and expenditures.

The session began on Tuesday, January 9.

Washington D.C. City Council is reviewing four bills that would impose new regulations and restrictions on political contributions.

Three bills under review would add various pay-to-play provisions. A fourth, which will be voted on by City Council on January 9, would institute public campaign financing for local elections.

The legislation, however, is not without its opponents.

Mayor Muriel Bowser announced she would not fund a public financing program. The public finance program, if passed by the Council, would not be in place until 2020.

Council Member David Grosso said if Bowser does not choose to fund the bill in her budget, the council can allocate money for the program.

Recapping the first week of the new year in campaign finance, lobbying, ethics and legislative sessions

National:

‘Fake News’: Wide reach but little impact, study suggests
New York Times – Benedict Carey | Published: 1/2/2018

Fake news evolved from Internet sideshow to serious electoral threat so quickly that behavioral scientists had little time to answer basic questions about it. But now the first hard data on fake-news consumption has arrived. Researchers posted an analysis of the browsing histories of thousands of adults during the run-up to the 2016 election, a real-time picture of who viewed which fake stories, and what real news those people were seeing at the same time. The reach of fake news was wide indeed, the study found, yet also shallow.

Partisans, Wielding Money, Begin Seeking to Exploit Harassment Claims
New York Times – Kenneth Vogel | Published: 12/31/2017

As the #MeToo movement to expose sexual harassment roils the nation’s capital, political partisans are exploiting the moment, raising hundreds of thousands of dollars to support accusers who come forward with charges against President Trump and members of Congress, even amid questions about their motivation. As accusations take on a partisan tint, activists and lawyers fear such an evolution could damage a movement that has shaken Hollywood, Silicon Valley, and Congress – and has taken down both a Democratic fundraiser, Harvey Weinstein, and a conservative stalwart, Bill O’Reilly.

The Modern Campaign-Finance Loophole: Governors Associations
MSN – Susan Pulliam and Brody Mullins (Wall Street Journal) | Published: 1/2/2018

Companies have found a loophole in state campaign finance rules by funneling donations through the Republican Governors Association (RGA) and its Democratic counterpart. Donors cannot earmark money for a candidate. Instead, they can simply – and legally – tell the groups they have “an interest” in a race or are contributing “at the request” of a candidate. Companies can give unlimited sums to outside groups that support candidates, but those contributions are generally disclosed. Corporate donations to the governors’ associations are also disclosed, but once the money is given to campaigns or organizations supporting them, it is labeled as coming from the RGA or the Democratic Governors Association.

Federal:

How the Russia Inquiry Began: A campaign aide, drinks and talk of political dirt
New York Times – Sharon LaFraniere, Mark Mazzetti, and Mat Apuzzo | Published: 12/30/2017

The hacking of Democratic emails and the revelation that a member of Donald Trump’s campaign, George Papadopoulos, may have had inside information about it were driving factors that led the FBI to open an investigation into Russia’s attempts to disrupt the election and whether any of Trump’s associates conspired. If Papadopoulos, who pleaded guilty to lying to the FBI, was the improbable match that set off a blaze that has consumed the first year of the Trump administration, his saga is also a tale of the Trump campaign in miniature. He was brash, boastful, and underqualified, yet he exceeded expectations. And, like the campaign itself, he proved to be a tantalizing target for a Russian influence operation.

Trump Disbands Commission on Voter Fraud
New York Times – Michael Tackett and Michael Wines | Published: 1/3/2018

President Trump announced he is disbanding a controversial panel studying alleged voter fraud that became mired in multiple federal lawsuits and faced resistance from states accusing it of overreach. The decision is a major setback for Trump, who created the commission last year in response to his claim, for which he provided no proof, that he lost the popular vote to Hillary Clinton in 2016 because of millions of illegally cast ballots. The commission met only twice amid the series of lawsuits seeking to curb its authority and claims by Democrats that it was stacked to recommend voting restrictions favorable to the president’s party.

From the States and Municipalities:

California – L.A. Could Exempt Many Nonprofits from Revealing Lobbying
Los Angeles Times – Emily Alpert Reyes | Published: 12/31/2017

Los Angeles requires people who are paid to try to influence city officials on municipal legislation to register and turn in regular reports on their spending. But it currently exempts some nonprofits from having to register and report their lobbying. The Ethics Commission recommended the city expand its current exemption, allowing any 501(c)(3) organization that gets less than $2 million in total income annually to avoid registering. The commission also recommended exempting any 501(c)(3) nonprofits that were formed primarily to provide assistance to disadvantaged people at reduced rates, no matter how much money they took in.

Florida – Tallahassee Commission Approves Separation Package for City Manager
Tallahassee Democrat – Jeffrey Schweers | Published: 1/3/2018

The Tallahassee City Commission accepted the resignation of City Manager Rick Fernandez. He was on paid administrative leave since November following an investigation by the Florida Commission on Ethics. He was accused of accepting football tickets to a Florida State University football game and receiving a $5,000 catering discount from the city-backed restaurant, The Edison. The tickets were arranged by a lobbying firm owned by Adam Corey, who also owns The Edison. Corey is one of several individuals named in federal subpoenas exploring dealings between the city Community Redevelopment Agency and several high-profile businesspeople.

Massachusetts – Pro-Charter School Group Fined for Hiding 2016 Campaign Donors including Mitt Romney’s Campaign
MassLive – Shira Schoenberg | Published: 1/2/2018

Massachusetts campaign finance officials have required a group that funneled large donations to 2016 ballot questions regarding charter schools and marijuana legalization to disclose the identity of their donors. Officials said Strong Economy for Growth raised and spent $1,168,000 to support the ballot questions. The Office of Campaign and Political Finance required Strong Economy for Growth to form a ballot question committee, disclose its donors, and pay $31,000 to the state for violating campaign finance laws – all the money left in its bank account. The group also agreed not to engage in any election-related activity in Massachusetts through 2018.

Michigan – FBI Wiretaps Reveal How Towing Titan Fiore Built His Empire
Detroit Free Press – Tresa Baldas and Keith Matheny | Published: 12/29/2017

Towing company owner Gasper Fiore was so politically connected that his daughter last year helped write an amendment to the Michigan Department of Transportation budget that ensured his company would win a multimillion-dollar contract, federal documents show. In wiretap evidence, the FBI offers a glimpse into how the Fiore built his towing empire by currying favor with high ranking officials across southeast Michigan. While Fiore has admitted to bribing just one Macomb County official, the FBI says he was in cahoots for years with many, from state lawmakers to police officials to a Detroit councilperson who was dating his daughter.

Missouri – Ethics Complaint Against Big Missouri Campaign Donor is Dismissed
Kansas City Star – Jason Hancock | Published: 1/2/2018

The Missouri Ethics Commission said it “finds no reasonable grounds” to believe businessperson David Humphreys violated state law governing lobbyists and the principals who employ them. State Rep. Mark Ellebracht filed the complaint against Humphreys, who along with his family donated more than $14 million to mostly Republican candidates and campaigns in 2016. At the center of the complaint was Paul Mouton, who was fined last year for illegally lobbying lawmakers on Humphreys behalf without registering.

New York – Howe Emailed Cuomo Officials on Private Accounts
Albany Times Union – Chris Bragg | Published: 12/30/2017

In the years before he pleaded guilty to federal corruption charges, lobbyist Todd Howe regularly emailed top officials in New York Gov. Andrew Cuomo’s administration about government business using their personal email accounts. The use of private email for public business would violate official state policy, and is contrary to Cuomo administration directives to conduct state business on state email accounts, to avoid the perception of an intent to hide communication from the public.

Oregon – Oregon Ethics Report Reveals New Details of How Cylvia Hayes Used Her Position to Profit
Portland Oregonian – Hillary Borrud | Published: 1/4/2018

Former Oregon First Lady Cylvia Hayes violated state ethics laws by using her position for the financial benefit of herself and her business, failing to avoid conflicts-of-interest, and receiving a gift of greater than $50, according to an investigation. Her fiancé, former Gov. John Kitzhaber, resigned in 2015 amid influence peddling allegations related to her contracting. He faces an ongoing inquiry by the state’s ethics watchdog agency. The Oregon Government Ethics Commission will vote whether to agree with the recommendation that violations took place. If so, Hayes will have the opportunity to appeal the ruling.

South Carolina – Golf, Beaches and Power: How utilities wine and dine the public officials that set your rates
Charleston Post and Courier – Andrew Brown | Published: 12/30/2017

Travel and other records reveal how South Carolina’s public service commissioners frequently eat, drink, and play golf with the people they regulate. They also show how on trip after trip, commissioners failed to properly report these as gifts as required under state ethics laws. Selected by state lawmakers, these regulators serve four-year terms and earn more than $100,000. They are supposed to be impartial, balancing the needs of utilities to make fair returns on investments with the rights of customers to pay fair rates. But the analysis of state travel records paints a picture of cozy gatherings and opportunities for influence-peddling.

Virginia – A Random Drawing Out of a Bowl Helped Republicans Win a Tied Virginia Election.
Washington Post – Laura Vozella | Published: 1/4/2018

An official of the Virginia State Board of Elections pulled out the name of Republican David Yancey from a bowl, breaking a tied race that is pivotal to control of the House of Delegates. The outcome means the House remains narrowly in the GOP hands, 51 seats to 49. The spectacle drew national attention as an odd way to decide a highly consequential contest. But it might not be the last word in the saga.

Washington – With Veto of City Council Ordinance, Condon Says Campaign Finance Better Left to the State
Spokane Spokesman-Review – Chad Sokol | Published: 12/29/2017

Spokane Mayor David Condon said he would veto a campaign finance ordinance passed by the city council that would impose new reporting requirements and halve the maximum amount a candidate can receive from any single donor. The mayor said he supports certain efforts to curb the role of “dark money” in politics. But he said the issue is better managed at the state level and predicted the proposed ordinance would not stand up to constitutional challenges.

State and Federal Communications produces a weekly summary of national news, offering more than 60 articles per week focused on ethics, lobbying, and campaign finance.

Lobbying

South Carolina: “Golf, Beaches and Power: How utilities wine and dine the public officials that set your rates” by Andrew Brown for Charleston Post and Courier

Campaign Finance

Maryland: “Democrats Slam Hogan Over RGA Donation from Poultry Company” by Fenit Nirappil for Washington Post

Massachusetts: “Pro-Charter School Group Fined for Hiding 2016 Campaign Donors including Mitt Romney’s Campaign” by Shira Schoenberg for MassLive

Virginia: “Several New Delegates Form Caucus to Reduce Corporate Money in Virginia Politics” by Patrick Wilson for Richmond Times-Dispatch

Ethics

“Partisans, Wielding Money, Begin Seeking to Exploit Harassment Claims” by Kenneth Vogel for New York Times

“Paul Manafort Sues Mueller and Asks a Judge to Narrow the Russia Investigation” by Matt Apuzzo for New York Times

“How the Federal Government Hides Sexual Harassment Payouts” by Andrew Restuccia, Emily Goldberg, and Rebecca Morin for Politico

Illinois: “CPS Employees Stole Gift Cards Meant for Students, Watchdog Says” by Juan Perez Jr. for Chicago Tribune

Michigan: “Ex-Detroit Police Official Waffles, Pleads Guilty” by Robert Snell for Detroit News

Missouri: “Missouri Democrats Place Target on Greitens Through Pre-Filed Legislation” by Rudi Keller for Columbia Daily Tribune

New York: “Corruption Trials Loom over Albany as New Year Begins” by Joe Mahoney for Oneonta Daily Star

Legislative Issues

Kentucky: “House Speaker Who Resigned Over Harassment Claim Reconsiders” by Adam Beam (Associated Press) for Columbus Ledger-Enquirer

Lobbying

“Roger Stone Retroactively Registers Lobbying Contract” by Megan Wilson for The Hill

California: “L.A. Could Exempt Many Nonprofits from Revealing Lobbying” by Emily Alpert Reyes for Los Angeles Times

Missouri: “Ethics Complaint Against Big Missouri Campaign Donor is Dismissed” by Jason Hancock for Kansas City Star

New York: “Howe Emailed Cuomo Officials on Private Accounts” by Chris Bragg for Albany Times Union

Campaign Finance

“The Modern Campaign-Finance Loophole: Governors Associations” by Susan Pulliam and Brody Mullins (Wall Street Journal) for MSN

Washington: “With Veto of City Council Ordinance, Condon Says Campaign Finance Better Left to the State” by Chad Sokol for Spokane Spokesman-Review

Ethics

Michigan: “FBI Wiretaps Reveal How Towing Titan Fiore Built His Empire” by Tresa Baldas and Keith Matheny for Detroit Free Press

South Dakota: “Ethics Measure Approved to Be on South Dakota’s 2018 Ballot” by James Nord (Associated Press) for PBS

Elections

“‘If We Don’t Run, Then We Won’t Achieve.’ Why a Record Number of Women Are Eyeing a Run for Governor.” by Karen Tumulty for Washington Post

“‘Fake News’: Wide reach but little impact, study suggests” by Benedict Carey for New York Times

“How the Russia Inquiry Began: A campaign aide, drinks and talk of political dirt” by Sharon LaFraniere, Mark Mazzetti, and Mat Apuzzo for New York Times

“Orin Hatch, Utah Senator, to Retire, Opening Path for Mitt Romney” by Jonathan Martin for New York Times

Spokane, Washington Mayor David Condon announced he is vetoing a campaign finance law passed by City Council on December 18.

The Mayor issued a statement expressing concerns the law would not stand up to constitutional challenges, leaving the city vulnerable to expensive litigation.

Moreover, he argued campaign finance reform is better managed at the state level through the Washington State Public Disclosure Commission to avoid redundant oversight.

City Council could override the veto with five votes.

Campaign Finance

Virginia: “After Calls for Campaign Finance Reform, Gov.-Elect Ralph Northam Takes Corporate Money for Inauguration” by Graham Moomaw for Richmond Times-Dispatch

Ethics

“Statehouse Sexual Harassment Tally: At least 18 lawmakers gone or punished” by Jen Fifield for HuffPost

“Rick Gates: Fundraiser video did not violate gag order” by Louis Nelson for Politico

“Where Is Trump’s Cabinet? It’s Anybody’s Guess.” by Emily Holden for Politico

“‘We Have Tapped into Something’: Impeachment drive builds digital army to take on Trump” by Carla Marinucci and David Siders for Politico

“Ivanka Trump Wears Her Company’s Clothes in Social Media Posts, Raising Further Conflict of Interest Questions” by Greg Price for Newsweek

“Trump’s Clinton Tweets Cut Against Comey Firing Explanation” by Eric Tucker (Associated Press) for ABC News

California: “Santa Monica School District’s Conflict of Interest Investigation Expands to Three Board Members” by Adam Elmahrek and Benjamin Oreskes for Los Angeles Times

Elections

“Doug Jones Certified as Alabama’s First Democratic Senator in 25 Years” by Jenny Jarvie for Los Angeles Times

Lobbying

Louisiana: “LA’s Ethics Commission Wants More Transparency from Lobbyists” by Libby Denkmann for KPCC

Campaign Finance

“New Hope, New Problem: Will Federal Election Commission shut down?” by Dave Levinthal for Center for Public Integrity

Arizona: “Law’s Wording to Play Key Role in Court Case Involving APS’ Political Spending” by Howard Fischer (Capitol News Services) for Arizona Daily Star

California: “L.A. Real Estate Developer and Billboard Executive Fined Over Political Donations” by Emily Alpert Reyes for Los Angeles Times

Ethics

California: “Former Beaumont City Officials Plead Guilty to Felony Charges” by City News Service for Los Angeles Times

Florida: “Jack Latvala Resigns from the Florida Senate” by Steve Bousquet for Tampa Bay Times

Nevada: “NV Legislature’s Administrative Arm Expands Harassment Rule” by Scott Sonner (Associated Press) for Sacramento Bee

Canada: “Trudeau Apologizes for Violating Ethics Laws with Visits to Aga Khan’s Island” by Catharine Tunney for CBC News

Elections

“Clashes Over State Ballot Initiatives Could Spill Into 2018” by James Nord (Associated Press) for Federal News Radio

“Senate Investigators Scrutinize Another Presidential Candidate: Jill Stein” by Nicholas Fandos for New York Times

Virginia: “Virginia Court Tosses Out One-Vote Victory That Briefly Ended GOP Majority in House” by Jim Morrison and Fenit Nirappil for Washington Post

Lobbying

Florida: “The Florida House Speaker Who Attacks Special Interests Spends Their Money Lavishly – and Won’t Apologize” by Adam Smith and Eli Zhang for Tampa Bay Times

New York: “JCOPE Tweaks Proposed Lobbying Regulations” by Chris Bragg for Albany Times Union

South Carolina: “Lobbying Is Completely Unregulated in Most S.C. Cities, Leaving Room for Possible Corruption” by Abigail Darlington for Charleston Post and Courier

Campaign Finance

“Surge in Out-of-State Donors Fuels Dems in Special Elections” by Ben Wieder and Alex Roarty for McClatchy DC

“Federal Regulators Approve Narrow Facebook Ad Disclosure” by Fredreka Schouten for USA Today

“In Small Win for Democrats, the Final Tax Bill Will Not Include a Provision Allowing Churches to Endorse Political Candidates” by Heather Long for Washington Post

New Mexico: “Public Financing System Undercut by Budget Holes” by Andrew Oxford for Santa Fe New Mexican

Wyoming: “Did Lawmakers Accidentally Open the Flood Gates for Political Dark Money in Wyoming?” by Arno Rosenfeld for Casper Star-Tribune

Ethics

Michigan: “Businessman Gets 21 Months in Macomb Corruption Scandal” by Robert Snell for Detroit News

Texas: “Board’s Handling of Ethics Policy Called a ‘Mockery’ by Concerned Citizens” by Diane Smith for Fort Worth Star-Telegram

Wisconsin: “Judge Acknowledges He Shouldn’t Have Authorized Release of Ethics Probe Details” by Matthew DeFour for Wisconsin State Journal

Spokane, Washington City Council passed a campaign finance reform ordinance on December 18.

The new ordinance will cut in half the maximum allowable donation to candidates, from $1,000 to $500.

Additional changes include pay-to-play provisions and election cycle contribution restrictions.

The new rules are scheduled to take effect January 17, 2018.

Ethics

Montana: Judge Eases Rules on Ethics Complaints Confidentiality for Elected Officials by Phil Drake for Great Falls Tribune

North Carolina: Does A ‘Good Ol’ Boy’ Culture Pervade The North Carolina General Assembly? By Jeff Tiberii for KUNC

South Carolina: Corruption Probe Evidence Suggests Pervasive Pattern of Political Meddling by Powerful Quinns by Glenn Smith for Charleston Post and Courier

South Dakota: South Dakota Lawmakers to Train in Sexual Harassment Prevention by Dana Ferguson for Sioux Falls Argus Leader

West Virginia: WV House Leaders Back Bill Amending Ethics Act to Include Volunteers by Jake Zuckerman for Charleston Gazette

Lobbying

Executives of Springfield Nonprofit Linked to $1 Million in Illegal Political Activity by Harrison Keegan and Alissa Zhu for Springfield New-Leader

Utah: Salt Lake Hires Ex-Utah League of Cities and Towns Director by Katie McKellar for Deseret News

Virginia: Dorothy McAuliffe Put Aside Pomp as Hard-Lobbying Virginia First Lady by Laura Vozzella for Washington Post

Campaign Finance

Fallout from Allegations of Tea Party Targeting Hamper IRS Oversight of Nonprofits by Robert O’Harrow Jr. for Washington Post

Washington: Spokane City Council Passes Local Campaign Finance Reform Laws by Kip Hill for Spokane Spokesman-Review

Campaign Finance

US Senate Hopeful Opens Coffers to Bitcoin Donations by Chuck Raasch for St. Louis Dispatch

Ethics

Has Ivanka Trump Repeatedly Broken Ethics Laws Since Joining The White House? By Cristina Silva for Newsweek

Nevada Democrat, facing ethics probe, won’t seek re-election by The Associated Press for The New Jersey Herald

Canada: ‘Watch me, you’ll see,’ under fire, new ethics czar vows to let his record do the talking on Trudeau, Morneau investigations by Abbas Rana and Peter Mazereeuw for The Hill Times

Lobbying

With Billions at Stake in Tax Debate, Lobbyists Played Hardball by Kenneth Vogel and Jim Tankersley for The New York Times

Tax lobbying keeps on giving by Theodoric Meyer for Politico

Analysis: 2017 Has Been Nutty for K Street, but 2018 Could Be Insane by Kate Ackley for Roll Call

Illinois: Lake Forest city manager: Nearly $200K spent lobbying without council OK by Daniel Dorfman for The Lake Forester

South Carolina: Lobbying is completely unregulated in most S.C. cities, leaving room for possible corruption by Abigail Darlington for The Post and Courier

Campaign Finance

Indiana: “Council Defeats Pay-to-Play Veto” by Dave Gong for Fort Wayne Journal Gazette

Ethics

“‘Fake News,’ Trump’s Obsession, Is Now a Cudgel for Strongmen” by Steven Erlanger for New York Times

Maryland: “General Assembly to Track Sexual Harassment Complaints Against Lawmakers” by Erin Cox for Baltimore Sun

Mississippi: “Moore Resigns Facing Sex Harassment Probe in House” by Geoff Pender for Jackson Clarion-Ledger

Missouri: “Former Jackson County Exec Sanders Used Disabled Friend to Run Illegal Kickback Scheme” by Mike Hendricks and Steve Vockrodt for Kansas City Star

Pennsylvania: “James Hickey, Co-Defendant of Allentown Mayor Ed Pawlowski, Pleads Guilty to Fraud Charges” by Emily Opilo and Peter Hall for Allentown Morning Call

South Carolina: “Rep. Rick Quinn Pleads Guilty in S.C. Corruption Case in Deal That Drops Charges for Kingpin Father” by Seanna Adcox and Glenn Smith for Charleston Post and Courier

Texas: “This Texas Lawmaker Could Finish His Term from Jail” by Alana Rocha for Texas Tribune

Texas: “Fort Worth School Board President Says Relationship with Linebarger Firm ‘Not an Issue’” by Diane Smith for Fort Worth Star-Telegram

Elections

“Smith to Take Franken’s Senate Seat, Run in 2018” by Brian Bakst and Tim Pugmire for Minnesota Public Radio