Lobbying

Pennsylvania: “Elect Them, Then Lobby Them: Two firms blur the worlds of policy and politics in Harrisburg” by Angela Couloumbis and Liz Navratil for Philadelphia Inquirer

Campaign Finance

“Will Donald Trump Let the Federal Election Commission Rot?” by Dave Levinthal for Center for Public Integrity

Arizona: “Commissioner Bob Burns Can’t Force Political Funding Disclosure, Utility Argues” by Howard Fischer (Capitol Media Services) for Arizona Daily Star

Illinois: “Weighing Third Term, Emanuel Relies on Campaign Donors Who Get City Hall Benefits” by Jeff Coen and Bill Ruthhart for Chicago Tribune

Maine: “Network of Companies with Ties to York County Casino Bid Stretches Far and Wide” by Scott Thistle for Portland Press Herald

New Jersey: “Court Revives Campaign Complaint Against Essex County Executive” by Nicholas Pugliese for Bergen Record

Oregon: “Legislators Consolidate Power, Cash, in Partially Invisible Cycle of Giving to Each Other” by Cooper Green for Salem Statesman-Journal

Elections

New York: “Monserrate, Ex-Senator and Ex-Convict, Seeks Votes Amid Disdain” by J. David Goodman for New York Times

Several provisions added last week to the House Financial Services appropriations bill would alter some federal campaign laws.

The legislation would prevent some charitable 501(c)(3) organizations such as churches from losing their tax-exempt status for making contributions to candidates. The bill would also allow corporations greater latitude in soliciting employees to contribute to political action committees.

The riders to the bill also include provisions prohibiting the IRS from enacting rules governing political activity and prohibiting the SEC from implementing rules requiring corporations to report to its shareholders a corporation’s political campaign activities.

A further change to campaign finance law in the appropriation bill would bar the use of funds to recommend or require any entity submitting an offer for a federal contract to disclose specified political contributions as a condition of submitting the offer.

The appropriations and other finance bills are expected to be debated this and next week in the House.

Campaign Finance

New Mexico: New Campaign Spending Rules to Take Effect by Dan Boyd for Albuquerque Journal

New York: Firm Uses Loophole to Secretly Donate $60G to de Blasio Campaign, Lobbying Records Show by James Fanelli for New York Daily News

Ethics

Mueller Gives White House Names of 6 Aides He Expects to Question in Russia Probe by Carol Leonnig, Rosalind Helderman, and Ashley Parker for Washington Post

Kentucky: Legislative Sex Harassment Case Spurs Call for Change in Kentucky’s Ethics Law by Jack Brammer for Lexington Herald-Leader

Elections

On Facebook and Twitter, a Hunt for Russia’s Meddling Hand by Scott Shane for New York Times

In Free-Range Trump, Many See Potential for a Third Party by Jeremy Peters for New York Times

Lobbying

Canada: Quebec’s Lobbyist Registry Best in Canada, Though All Struggle in Key Transparency Metrics: Study by Marco Vigliotti for The Hill Times

Virginia: Virginia Lawmakers Attend Fewest Lobbyist-Paid Entertainment Events Since McDonnell Case by Will Houp for Virginian-Pilot

Procurement

Illinois: Aldermen Take Another Stab at Relaxing Ethics Rules for Contractors by Fran Spielman for Chicago Sun-Times

 Becky is coming to you from the Content Marketing World 2017 conference in Cleveland, Ohio with this week’s News You Can Use Video Digest!

Lobbying

“A Two-Decade Crusade by Conservative Charities Fueled Trump’s Exit from Paris Climate Accord” by Robert O’Harrow Jr. for Washington Post

Florida: “Hernando Commission to Debate Ordinance Requiring Lobbyists to Register” by Barbara Behrendt for Tampa Bay Times

Campaign Finance

“Facebook Says It Sold Political Ads to Russian Company During 2016 Election” by Carol Leonnig, Tom Hamburger, and Rosalind Helderman for Washington Post

Montana: “Gov. Bullock Settles Campaign Violation Over State Airplane for $3,000” by Tom Lutey for Billings Gazette

New Mexico: “New Mexico Candidate Seeks Court Injunction to Access Cash” by Morgan Lee (Associated Press) for U.S. News & World Report

Ethics

“Trump Gets Millions from Golf Members. CEOs and Lobbyists Get Access to President” by Brad Heath, Fredreka Schouten, Steve Reilly, Nick Pezenstadler, and Aamer Madhani for USA Today

California: “Prosecution Freezes Assets of Fired Centinela Superintendent Facing Embezzlement Charges” by Larry Altman for Los Angeles Daily Breeze

Connecticut: “Ex-Hartford Mayor Eddie Perez Pleads Guilty to Bribe Receiving, Attempted Larceny; Spared Prison” by David Owens and Jenna Carlesso for Hartford Courant

Florida: “Prosecutors Had 5 Years to Charge ex-U.S. Rep. David Rivera. Now Time Has Run Out.” by Patricia Mazzei for Miami Herald

Georgia: “Reed to Ethics Board: ‘I don’t have an ax to grind’” by Nicole Carr for WSB

Elections

“Software Glitch or Russian Hackers? Election Problems Draw Little Scrutiny” by Nicole Pearlroth, Michael Wines, and Matthew Rosenberg for New York Times

Texas: “Court: Texas Can Enforce New Voter ID Law in November” by Allie Morris for Governing

Gov. Jerry Brown signed Assembly Bill 187 and Assembly Bill 551 into law on September 1, amending both lobbying and campaign finance laws.

Assembly Bill 187 requires a committee to file a report within 10 business days of making a contribution or independent expenditure aggregating $5,000 or more to support or oppose the qualification of a single local initiative or referendum ballot measure.

Assembly Bill 551 extends revolving door restrictions to independent contractors of a local government agency or a public agency who are appearing or communicating on behalf of that agency.

Both bills are effective January 1, 2018.

Denver City Council is attempting to close a loophole allowing campaign spending to go unreported if not coordinated directly with a candidate’s campaign.

The measure would adopt the state definitions of independent expenditure and electioneering communication. It would also require individuals or entities making independent expenditures to file a report within two days of spending more than $1,000, itemize all contributions received exceeding $25, and clearly identify the source of funding for any paid advertising.

If the bill passes, other changes to city campaign finance laws would include differentiation between issue committees and other political committees, as well as a requirement for quarterly reports in the calendar year before an election and additional reporting in the weeks leading up to an election.

Council has scheduled a final vote for Sept. 11.

Lobbying

Delaware: “Politics of Persuasion: Dozens of lobbyists now work the legislature for more than 200 groups” by Matt Bittle for Delaware State News

Texas: “Fred Lewis Appointment Stirs Controversy” by Jo Clifton for Austin Monitor

Campaign Finance

“Democrats Say ‘Citizens United’ Should Die. Here’s Why That Won’t Happen.” by Sarah Kleiner for Center for Public Integrity

California: “SF’s Political Watchdog Agency Proposes Sweeping Reforms, Nonprofits Cry Foul” by Joshua Sabitini for San Francisco Examiner

Colorado: “Denver Proposal Aims to Force Disclosure of Independent Spending in Elections as ‘Dark Money’ Trickles Down” by Jon Murray for Denver Post

Maine: “Pressed to Reveal Funding Sources, Miami Real Estate Developer Withdraws from York County Casino Campaign” by Scott Thistle for Portland Press Herald

Ethics

“Mueller Examining Trump’s Draft Letter Firing FBI Director Comey” by Rosalind Helderman, Carol Leonnig, and Ashley Parker for Washington Post

“Menendez Trial Set to Begin with Tensions High and Washington Watching” by Nick Corasaniti for New York Times

Hawaii: “OHA’s Peter Apo To Pay $25,000 For Ethics Violations” by Nick Grube for Honolulu Civil Beat

Wisconsin: “Report: New Ethics Commission has conducted just 1 investigation, says compliance is up” by Mark Sommerhauser for Wisconsin State Journal

Procurement

New Mexico: “New Mexico Sues Chiefs Owner Clark Hunt, Alleging Kickbacks in $300 Million Investment” by Robert Cronkelton and Ian Cummings for Kansas City Star

Lobbying

Maine: “State Workers Drop Mandatory Union Fees in Favor of More Pay” by Scott Thistle for Portland Press Herald

Campaign Finance

“Statehouses, Not Congress, Hosting Biggest Political Money Fights” by Ashley Balcerzak for Center for Public Integrity

California: “‘Campaign Guru’ Gets Prison in Azano San Diego Mayoral Election-Funding Scheme” by Kristina Davis for San Diego Union-Tribune

Maryland: “Facing Minor Fine, Hogan Campaign Lawyer Threatens Attorney General Frosh” by Fenit Nirappil for Washington Post

Ethics

“Manafort Notes from Russian Meet Refer to Political Contributions” by Ken Dilanian and Carol Lee for NBC News

“Treasury Inspector General to Review Mnuchin’s Flight to Fort Knox” by Drew Harwell for Washington Post

Arizona: “Arizona Utility Regulators Consider Adopting Ethics Policy in Wake of Controversies” by Ryan Randazzo for Arizona Republic

Pennsylvania: “Ex-Township Supervisor Agrees to Pay $327 Monthly on $105,000 Ethics Commission’s Sanction” by John Beauge for PennLive.com

South Carolia: “Rep. Jim Merrill Pleads Guilty to Misconduct, Agrees to Assist Investigators in Statehouse Corruption Probe” by Glenn Smith and Andrew Brown for Charleston Post and Courier

National:

Campaign Regulation Foes Targeting State-Level Restrictions
Center for Public Integrity – Ashley Balcerzak | Published: 8/31/2017

Having won significant battles at the federal level over campaign finance laws, political groups and libertarian nonprofits are now targeting state-level rules in district and appellate courts across the country. The effects could be wide-ranging. The most notable battles deal with when groups need to disclose their donors, and whether contribution limits trample on donors’ freedoms of speech and expression.

The New Front in the Gerrymandering Wars: Democracy vs. math
New York Times – Emily Bazelon | Published: 8/29/2017

Wisconsin Republicans tried hard to keep their legislative mapmaking process a secret, but they were not successful. In the first of two lawsuits brought by Democratic voters, three federal judges berated GOP leaders in 2012 for ‘‘flailing wildly in a desperate attempt to hide’’ their methods to assure Republican control of the state Legislature. A court ordered Republicans to turn over three computers. In 2016, a computer expert hired by the plaintiffs found spreadsheets that used a powerful new gerrymandering tool, based on sophisticated computer modeling.

Federal:

How to Get Rich in Trump’s Washington
New York Times – Nicholas Confessore | Published: 8/30/2017

Interests that have spent millions of dollars lobbying in Washington, D.C. were surprised by Donald Trump’s victory last November. By the end of his first 100 days in office, it seemed, Trump had not so much “drained the swamp” as enshrouded it in a fog of uncertainty. No previous president had changed his mind more often, or contradicted his cabinet so frequently, or permitted such ideological combat in the White House. Big corporations and trade associations did not quite know what to expect. But mostly, they did not know whom to contact. All of this inadvertently created an entirely new business model for Trump’s friends and former employees.

Members of Congress Scoring Personal Loans from Political Supporters
Center for Public Integrity – Nicholas Jahr and Ellen McCreary Ionas | Published: 8/29/2017

A review of financial disclosure forms filed by current members of the U.S. House and Senate reveals at least 19 have accepted loans from organizations or wealthy individuals instead of a bank or traditional financial institution. Often, these organizations and individuals rank among the lawmakers’ key political supporters. In two of these cases, the loans were made to members’ spouses. The loans range in value from $15,000 to $5 million. There is nothing illegal about such loans, even when the lender is also a campaign donor. But watchdog groups say such arrangements raise concerns about possible conflicts-of-interest.

Washington Lobbying Firms Receive Subpoenas as Part of Russia Probe
Washington Post – Carol Leonnig and Tom Hamburger | Published: 8/25/2017

Special counsel Robert Mueller issued grand jury subpoenas asking public relations and lobbying firms to provide records regarding their interactions with the consulting firms led by Michael Flynn, a former national security adviser to President Trump, and Paul Manafort, former chairperson of the Trump presidential campaign. The requests suggest Mueller’s investigators are looking closely at Manafort and Flynn, both of whom face possible legal jeopardy for allegedly failing to disclose foreign governments or parties may have been the beneficiaries of their consulting and lobbying work, as they seek potential links between Trump’s campaign and Russia.

From the States and Municipalities:

California
3 of 4 Colonies Corruption Defendants Found Not Guilty on All Charges
San Bernardino Sun – Joe Nelson and Richard Deatley | Published: 8/28/2017

Developer Jeff Burum and two former San Bernardino County officials – former Supervisor Paul Biane, and Mark Kirk, former chief of staff for then-county Supervisor Gary Ovit – were found not guilty of bribery, conflict-of-interest, and improper influence in an alleged scheme to get county approval of a $102 million court settlement in favor of a developer. Prosecutors alleged Burum paid $400,000 in political contributions to the defendants and former Board of Supervisors Chairperson Bill Postmus, who later entered a plea bargain with prosecutors and testified at the trial. The money, investigators alleged, were actually bribes or payments for delivering the settlement.

Florida
FBI Arranged Outings for Gillum, Others During NYC Trip
Tallahassee Democrat – Jeff Burlew | Published: 8/25/2017

The FBI may have tried to entice Tallahassee Mayor Andrew Gillum through one of his close friends to see a Broadway show, catch a Major League Baseball game, and stay at a New York City hotel as part of its investigation into alleged public corruption in Tallahassee. Gillum, who had room reservations elsewhere, will not say if he stayed at or visited the Millennium Hotel in Manhattan, where an FBI agent posing as a developer had arranged rooms for him and others. He also will not say if he attended “Hamilton” or went to the New York Mets game. Public officials such as Gillum are required to report gifts valued over $100, though there are exceptions.

Georgia
White Lawmaker Warns Black Attorney She May ‘Go Missing’ If Confederate Statues Are Threatened
Washington Post – Cleve Wootson Jr. | Published: 8/30/2017

Georgia Rep. Jason Spencer said a former Democratic lawmaker might “go missing” if she continues to criticize Confederate statues. Spencer originally posted a photo with a memorial for Confederate President Jefferson Davis, saying the statue was Georgia’s history and used the hashtag #DealWithIt in a Facebook post. That prompted a response from former state Rep. LaDawn Jones, who told Spencer to “put your hoods and your tiki torches away. We are no longer afraid.” Spencer then said those who criticize the state’s Confederate history “will go missing in the Okefenokee” because people in South Georgia “will not put up with it like they do in Atlanta.”

Idaho
Lawmakers: Idaho ‘uniquely poised’ to stiffen campaign, lobbying disclosure requirements
Spokane Spoesman-Review – Betsy Russell | Published: 8/28/2017

Idaho lawmakers are mulling several key changes to the state’s campaign finance and lobbying laws. A bipartisan working group met for a second time to hear possible recommendations from the state’s top lobbyists and Secretary of State Lawerence Denney. The goal is to have the panel submit suggestions to before the 2018 legislative session begins in January. Some of the proposals would place new reporting requirements on PACs, and require lobbyists to report their expenditures year-round, rather than just during the legislative session.

Iowa
Special Interest Groups Spend Big at Iowa Capitol
Des Moines Register – Brianne Pfannenstiel | Published: 8/24/2017

A Des Moines Register analysis showed special interest groups in Iowa paid lobbyists about $20.4 million last year in an effort to sway policy on issues ranging from Medicaid to workers’ compensation to legalized fireworks. The data provide a broad look at who is vying for influence at the Capitol during a year in which Republicans took control of the House, Senate, and governor’s office for the first time in nearly 20 years. With the new power dynamic, many groups may choose to “lobby up,” either to capitalize on their new opportunity or to fight perceived threats, said lobbyist Jim Carney.

Kentucky
Ethics Group Wants to Know What Led Mnuchin to View Eclipse in Kentucky
Washington Post – Drew Harwell and Beth Reinhard | Published: 8/24/2017

Citizens for Responsibility and Ethics in Washington is seeking records detailing the cost of Treasury Secretary Steve Mnuchin’s recent trip to Kentucky in a government plane, saying it “seems to have been planned around the solar eclipse.” Mnuchin and his wife, Louise Linton, watched the eclipse from the lawn of Fort Knox in Kentucky, which was just outside the path of totality. It was Linton’s sharing of the expensive designer labels of her outfit as she stepped off the plane in Kentucky in an Instagram post and her subsequent rant against a commenter who criticized it that first raised eyebrows.

Massachusetts
In Massachusetts, Lobbyists Outnumber Lawmakers Seven-to-One
WWLP – Steve LeBlanc (Associated Press) | Published: 8/27/2017

There are now more than seven lobbyists for each of the 200 state lawmakers in Massachusetts. From 2006 to 2016, the number of active lobbyists jumped by about 1,000. A big part of the increase is due to a law that took effect in 2009 aimed at sharpening the definition of a lobbyist. Before the new law, an individual was not considered to be a lobbyist if he or she spent less than 50 hours lobbying, or received less than $5,000 in lobbying fees, during each six-month reporting period. The new law tightened that to 25 hours, or $2,500.

Michigan
Attorney: Michigan super PACs face ‘firestorm’ of fines
Detroit News – Jonathan Oosting | Published: 8/28/2017

Attorney Bob LaBrant asked Michigan Secretary of State Ruth Johnson’s office to clarify state rules governing super PAC contributions in the wake of a U.S. Supreme Court ruling in 2012 that opened the doors for unlimited but independent political spending as a form of free speech. Michigan has not updated its campaign finance laws to reflect the decision, and LaBrant argues a little-known state Bureau of Elections action in 2014 could lay the groundwork for a “firestorm” of complaints and fines that would cut across business, labor, conservative, and liberal donors.

Montana
Discounted Sale of US Interior Secretary’s Motor Home Raises Questions
ABC News – Bobcaina Calvin (Associated Press) | Published: 8/28/2017

U.S. Interior Secretary Ryan Zinke’s dormant congressional campaign committee recently sold a 2004 motor home at a steep discount to Montana Sen. Ed Buttrey. But a seemingly ordinary transaction between friends, when seen through the optics of stringent campaign finance laws, can raise a bevy of questions. After learning about the transaction, watchdogs are raising a $25,000 question: Why would Zinke’s campaign committee sell the Kountry Star Freightliner for half the price of its apparent $50,000 market value? The FEC prohibits political committees to sell assets, including campaign vehicles, below fair market value.

Washington
Is Olympia Lawyer the Democrats’ Champion in Complaint-Filing War?
Tacoma News Tribune – Melissa Santos | Published: 8/27/2017

A conservative activist has been taking aim at Democrats and liberal groups for the past year, filing at least 120 complaints saying they have broken Washington state’s campaign finance laws. Now, someone is turning the tables, saying conservative Glen Morgan and a group he leads have committed some of the same financial reporting violations. Walter Smith, an Olympia attorney, said he is concerned that the state’s campaign finance laws are being enforced unevenly due to the volume of complaints Morgan has filed against Democratic candidates in recent months.

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

“How to Get Rich in Trump’s Washington” by Nicholas Confessore for New York Times

Oregon: “Marijuana Lobbyists Harvest Cash from Bankers, Accountants, Lawyers and Others” by Scott Thistle for Portland Press Herald

Utah: “State Lawmaker Chosen to Head Utah Technology Council Advocacy Group” by Lee Davidson for Salt Lake Tribune

Campaign Finance

Arizona: “Utility Regulators Consider Giving Service Territory to Campaign Donors” by Ryan Randazzo for Arizona Republic

Ethics

“DOJ Is Investigating Whether Uber Broke the Law Against Foreign Bribery” by Elizabeth Dwoskin for Washington Post

“Members of Congress Scoring Personal Loans from Political Supporters” by Nicholas Jahr and Ellen McCreary Ionas for Center for Public Integrity

Alaska: “New Ballot Initiative Targets Legislators’ Per Diem Pay” by James Brooks for Juneau Empire

New York: “State Worker Is Interrogated for Allegedly Letting Someone in the Building” by Rick Karlin for Albany Times Union

Procurement

Missouri: “KCI Contract Selection Delayed by Conflict of Interest Complaint against Justus” by Steve Vockrodt and Lynn Horsley for Kansas City Star

Following suggestions from a working group of the legislature, Sec. of State Lawerence Denney presented a series of ethics and campaign finance draft bills to improve the state’s public disclosure system.

The suggested changes include limiting PACs from accepting more than $1,000 from other PACs unless the contributing PAC is registered with the state, removing an exception for local election reporting, increasing the frequency of campaign finance reporting, and requiring lobbyists to report all year, rather than only while the legislature is in session. Increasing fines for reporting violations is also on the table.

With ample funding available, the Sec. of State’s office would also like to see major improvements to the online reporting system. Critics are concerned increased reporting would be too burdensome and dissuade citizens from getting involved in the political process.

On August 28, a judge upheld a ban on the public financing of local campaigns, invalidating last year’s reforms put in place by Senate Bill 1107.

The Sacramento Superior Court ruled in favor of plaintiffs, Howard Jarvis Taxpayers Association and retired State Senator and Judge Quentin L. Kopp, invalidating SB 1107 and ruling that the matter must be sent to voters on a statewide ballot.

SB 1107 was passed in 2016 and allowed any municipality the option to create systems for publicly funded campaigns. In the absence of SB 1107, only six charter cities can offer limited public funds to match small campaign donations.

Lobbying

“Exclusive: Bloomberg charity scrutinized by India for anti-tobacco funding, lobbying – documents” by Aditya Kalra for Reuters

Campaign Finance

Michigan: “Attorney: Michigan super PACs face ‘firestorm’ of fines” by Jonathan Oosting for Detroit News

Montana: “Discounted Sale of US Interior Secretary’s Motor Home Raises Questions” by Bobcaina Calvin (Associated Press) for ABC News

Ethics

California: “3 of 4 Colonies Corruption Defendants Found Not Guilty on All Charges” by Joe Nelson and Richard Deatley for San Bernardino Sun

Colorado: “Emails Raise Ethical Questions About Colorado Lawmaker. But He Says There’s Nothing to See.” by Jesse Paul for Denver Post

Idaho: “Lawmakers: Idaho ‘uniquely poised’ to stiffen campaign, lobbying disclosure requirements” by Betsy Russell for Spokane Spoesman-Review

Elections

“Top Trump Organization Executive Asked Putin Aide for Help on Business Deal” by Rosalind Helderman, Carol Leonnig, and Tom Hamburger for Washington Post

Legislative Issues

North Carolina: “Court Weighs Legislature’s Stripping of Cooper’s Powers” by Emery Dalesio (Associated Press) for Ashville Citizen-Times

Redistricting

“The New Front in the Gerrymandering Wars: Democracy vs. math” by Emily Bazelon for New York Times