Lawmakers in Washington have introduced two bills to enhance campaign finance disclosure and ethics laws.

Senate Bill 5108 aims to increase transparency of “gray money” by limiting political action committees from receiving 70 percent or more of their contributions from other political committees.

Another proposal, House Bill 1159, seeks to establish revolving door provisions requiring former state officials to take a yearlong “cooling-off” period before they can become lobbyists.

Lobbying

Florida: “NRA’s Influence with Florida Lawmakers Is Powerful” by Steve Bousquet (Tampa Times) for Bradenton Herald

Campaign Finance

“Trump Tweet About L. L. Bean Underscores Potential Danger for Brands” by Daniel Victor for The New York Times

California: “State Watchdog Agency Investigating after Times Report on Political Donations” by Emily Alpert Reyes and David Zahniser for Los Angeles Times

District of Columbia: “In a City Plagued by Pay-to-Play Politics, an Important Decision Looms for D.C.” by Aaron Davis for The Washington Post

Washington: “Lawmakers in Olympia Seek New Campaign-Disclosure and Ethics Rules” by Joseph O’Sullivan for Seattle Times

Ethics

“After Trump Rebuke, Federal Ethics Chief Called to Testify Before House Lawmakers” by Lisa Rein, Tom Hamburger, and Mike DeBonis for The Washington Post

Maryland: “Democrat Michael Vaughn of Prince George’s Resigns from State Legislature” by Ovetta Wiggins for The Washington Post

Montana: “Republican Lawmakers Try to Cut Off Campaign Regulator’s Pay” by Matt Volz (Associated Press) for SF Gate

Tennessee: “House Lawmakers Must Disclose Political Junkets” by Joel Ebert for The Tennessean

Texas: “Top House Republican Says Dark Money Debate Won’t Kill Ethics Reform” by Jay Root for Texas Tribune

See what’s happening in government relations this week in our News You Can Use Video Digest. Enjoy!

On January 12, the Federal Election Commission (FEC) was unable to agree on a policy to clarify when and if a U.S. domestic subsidiary corporation of a foreign national is illegally involved in political activity.

Federal law prohibits foreign nationals from directly or indirectly making contributions, donations, expenditures, independent expenditures, and disbursements in connection with federal, state, or local elections. FEC regulations also prohibit foreign nationals from directing, controlling, or participating in the decision-making process of any person, such as a corporation, with regards to decisions concerning the making of contributions, donations, expenditures, or disbursements in connection with elections in the U.S.

Additionally, the FEC was unable to reach an agreement on the creation of a safe harbor for political committees to accept corporate contributions deemed not to have come from foreign national sources.

In response, Vice Chair Caroline C. Hunter and Commissioners Matthew S. Petersen and Lee E. Goodman issued a statement.

A previous attempt to reach an agreement on this issue in September also failed.

National:

Russian Hackers Find Ready Bullhorns in the Media
New York Times – Max Fisher | Published: 1/8/2017

Reporters have always relied on sources who provide critical information for self-interested reasons. The duty is to publicize information that serves the public interest without falling prey to the source’s agenda. But in 2016, the source was Russia’s military intelligence agency – operating through shadowy fronts who worked to mask that fact – and its agenda was to undermine the American presidential election. By releasing documents that would tarnish Hillary Clinton and other U.S. political figures, but whose news value compelled coverage, Moscow exploited the very openness that is the basis of a free press.

Federal:

DOJ Watchdog Opens Review of Comey’s Clinton Email Investigation
Politico – Josh Gerstein | Published: 1/12/2017

The Justice Department’s internal watchdog will investigate FBI Director James Comey’s decision to publicly release information about the bureau’s investigation into Hillary Clinton’s handling of classified material. The inquiry by the department’s inspector general will focus on whether “policies or procedures were not followed” when Comey held a July 5 news conference to discuss the case, and when he sent letters to Congress just before the election that disclosed his agents were reviewing newly discovered emails pertinent to the Clinton case. Some in Clinton’s campaign blamed Comey’s actions for halting her momentum shortly before the election and helping in Donald Trump’s presidential victory.

How a Sensational, Unverified Dossier Became a Crisis for Donald Trump
New York Times – Scott Shane, Nicholas Confessore, and Matthew Rosenberg | Published: 1/11/2017

As they prepared to brief President Obama and President-elect Donald Trump on Russian interference in the 2016 election, U.S. intelligence officials decided to mention the salacious allegations that Moscow had compromising information on the incoming president. That triggered coverage of allegations that news organizations had tried to run down for months but could find no basis for publishing until they were summarized and included alongside a classified report assembled by the nation’s intelligence services. Parts of the story remain out of reach – most critically the basic question of how much, if anything, in the dossier is true. But it is possible to piece together a rough narrative of what led to the current crisis, including lingering questions about the ties binding Trump and his team to Russia.

Trump Won’t Drop Business Ties
Politico – Josh Dawsey and Darren Samuelsohn | Published: 1/11/2017

Donald Trump, insisting he will not divest himself of his vast business empire as he prepares to assume the presidency, plans instead to turn over all of his business operations to a trust controlled by his two oldest sons and a longtime associate. He will donate to the U.S. government all profits from foreign government payments to his hotels. The Trump Organization will also refrain from entering into any new deals with foreign partners, backing off from an earlier claim by Trump that his company would have “no new deals” of any kind during his presidency. The business will have to clear any new transactions with an ethics adviser. The moves fell short of the recommendations of ethics experts who have said the only way for Trump to genuinely eliminate potential conflicts is to place all his real estate holdings and other ventures in a blind trust over which neither he nor his family has any control.

From the States and Municipalities:

California – How This Former Aspiring Screenwriter Became One of California’s Campaign Finance Experts After Losing His Day Job
Los Angeles Times – Christine Mai-Duc | Published: 1/9/2017

Three years ago, Rob Pyers was as far away from politics as one could imagine: a college dropout who had been laid off from his job, binge-watching Netflix to pass the time. Today, from his one-bedroom apartment in West Hollywood, Pyers anchors one of the most trusted compendiums on state politics and is becoming the ultimate insider in the often-opaque world of campaign finance. His passion for organizing massive amounts of data has transformed the California Target Book and made his Twitter feed a go-to resource for some of Sacramento’s top operatives.

California – L.A. Politicians Propose Banning Campaign Contributions from Developers
Los Angeles Times – David Zahniser and Emily Alpert Reyes | Published: 1/10/2017

A group of Los Angeles City Council members proposed banning contributions to council campaigns from developers with projects currently or recently before the city. The motion also would consider whether to expand the city’s definition of developer to include building contractors and subcontractors, and whether to increase the enforcement staff at the city Ethics Commission to ensure more frequent audits and inspections. With the council approval of the motion, it is now up to the ethics panel and other city staff to craft implementing ordinances to bring back to the council in coming months.

Colorado – Denver Council Approves Gift-Report Rules That Require More Frequency, Better Access
Denver Post – Jon Murray | Published: 1/9/2017

The Denver City Council voted in favor of requiring more frequent reporting, more detail, and easier-to-access records of the meals, tickets, and most other gifts they receive from donors with a city interest. The new rules replace a system of annual reporting in which those gifts and other financial disclosures were not viewable by the public until seven months after the end of the reporting period, and could be obtained only by visiting the clerk’s office and paying for copies. The ordinance was one of three ethics measures considered by the council in recent months. It approved another proposal that will make lobbyists’ registrations and bimonthly reports of spending on city lobbying activities available online.

Connecticut – CT’s Largest Lobbying Firms Led by Women
HartfordBusiness.com – Patricia Daddona | Published: 1/9/2017

Paddi LeShane is an equal partner with Patrick Sullivan running Connecticut’s third largest lobbying firm – Sullivan & LeShane Inc. – with 47 registered clients. But she is not the only high-profile woman lobbyist running her own shop. In a profession long-dominated by men, women operate three of the five largest lobbying firms in Connecticut, based on number of registered clients, and their presence at the Capitol is growing. In fact, women lobbyists are far from an anomaly in the government relations field these days, industry experts say.

Kentucky – Report: Beshear officials shook down 16 workers
Louisville Courier-Journal – Tom Loftus | Published: 1/11/2017

Kentucky Gov. Matt Bevin’s investigation of former Gov. Steve Beshear’s administration has found state employees were solicited for campaign contributions both during and after working hours. The investigators interviewed 16 non-merit employees from six departments in the Beshear administration. Witnesses said “virtually all non-merit employees” in the executive branch were expected to make a financial contribution, according to the report. Kentucky law forbids specifically targeting state employees for campaign donations, unless the solicitation is part of a larger plan that includes non-state employees.

Maryland – Federal Bribery Charges Filed over Prince George’s County Liquor Licenses
Washington Post – Lynh Bui, Ann Marimow, and Arelis Hernandez | Published: 1/5/2017

Federal investigators disclosed that two Maryland lawmakers, one now out of office, are targets of a public corruption probe and expected to be charged in a bribery scheme that already has resulted in charges against two Prince George’s County liquor board officials and two business owners. The two lawmakers were unnamed in federal affidavits that outlined a bribery conspiracy in which officials were paid for favorable liquor license actions. Among those charged were David Dae Sok Son, the liquor agency’s administrator. Son solicited and facilitated bribes ranging from $1,000 to $5,000 from lobbyists and business owners, according to prosecutors. It is alleged that Son facilitated payments to an elected official for help moving a business to the county and grants the official controlled.

Massachusetts – City Hall Promised Lobbying Reform. Nothing Happened.
Boston Globe – Mark Arsenault and Andrew Ryan | Published: 1/9/2017

A year after Boston Mayor Martin Walsh promised that regulations governing municipal lobbyists would be a priority, no plan has been approved. Since February, the initiative has sat untouched in a city council committee without a hearing. Wash and council leaders may have said they supported new lobbying rules, but it appears none of them made an effective effort to follow through. That means corporations and interest groups continue to employ lobbyists to quietly influence city government with practically no public scrutiny.

Missouri – Missouri Attorney General Josh Hawley Announces New Ethics Policy
Kansas City Star – Jason Hancock | Published: 1/10/2017

Missouri Attorney General Josh Hawley banned his employees from accepting gifts from lobbyists. Hawley also will not accept campaign contributions from anyone who has a pending bid or application for state contract on which the attorney general’s office has decision-making authority. The new ethics policy comes one day after Gov. Eric Greitens signed an executive order banning state workers in the executive branch from accepting lobbyist gifts. It is unclear whether Greitens’ order is actually enforceable.

New York – AG Will Hold Off on Enforcing Parts of Lobbying Disclosure Law
Albany Times Union – Chris Bragg | Published: 1/12/2017

New York Attorney General Eric Schneiderman will not enforce certain parts of a new state ethics law requiring charitable organizations that give money to lobbying campaigns to disclose more of their donors while a federal lawsuit moves through the courts. One provision that is affected would require 501(C)3 charities to report their sources of funding when the group makes an in kind contribution or donation in excess of $2,500 to a 501(c)(4). The other provision mandates 501(c)(4) groups that spend more than $10,000 a year on any public policy communications report the name and address of donors who give $1,000 or more.

Pennsylvania – Calls Turn Developers into Donors for Peduto
Pittsburgh Post-Gazette – Rich Lord | Published: 1/8/2017

Pittsburgh Mayor Bill Peduto is making a bid for a second term, with no announced challenger. Like incumbents past, he has filled a campaign account in part by collecting from people who do business with the city. Pittsburgh’s top development official has asked developers to contribute to Peduto’s campaign, in a series of calls the administration contends were devoid of deal-making, but which others said are at odds with the spirit of reform the mayor once championed.

South Carolina – Merrill Indictment Casts Pall Over Opening of SC Legislature
The State – Avery Wilks | Published: 1/9/2017

As the South Carolina Legislature reconvenes, the top issues will include fixing the state’s roads and addressing an underfunded pension system. But a corruption investigation will cast a pall over the proceedings, raising a host of other issues. Two indictments during the past month mean the Republican-controlled Legislature will start its session without a pair of GOP legislators. Rep. Chris Corley was suspended after he was indicted on criminal domestic abuse charges. Rep. Jim Merrill was suspended after he was indicted on charges of using his public office to pocket at least $1.3 million from outside interest groups. Watchdogs say the behavior alleged in Merrill’s indictment is not all that unique at the statehouse and more indictments could be on the way.

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

Connecticut: “CT’s Largest Lobbying Firms Led by Women” by Patricia Daddona for HartfordBusiness.com

Florida: “Brevard County Commissioners Reject Lobbying Rules” by Dave Berman for Florida Today

Missouri: “Missouri Attorney General Josh Hawley Announces New Ethics Policy” by Jason Hancock for Kansas City Star

Campaign Finance

California: “L.A. Politicians Propose Banning Campaign Contributions from Developers” by David Zahniser and Emily Alpert Reyes for Los Angeles Times

California: “Ethics Watchdog Turns in Her Own Group” by Martin Wisckol for Orange County Register

Kentucky: “Report: Beshear officials shook down 16 workers” by Tom Loftus for Louisville Courier-Journal

Ethics

“How a Sensational, Unverified Dossier Became a Crisis for Donald Trump” by Scott Shane, Nicholas Confessore, and Matthew Rosenberg for The New York Times

“Trump Won’t Drop Business Ties” by Josh Dawsey and Darren Samuelsohn for Politico

Maryland: “Former Md. State Del. Will Campos Pleads Guilty to Accepting Bribes for Official Favors” by Lynh Bui and Arelis Hernandez for The Washington Post

North Carolina: “Cooper Expands Lawsuit Over Power Struggle with Legislature” by Craig Jarvis for Raleigh News & Observer

On Tuesday, January 10, the D.C. Council introduced several bills aimed at limiting big donors’ influence and increasing transparency in campaign fundraising. Citizens have accused Mayor Muriel E. Bowser, a Democrat, of participating in pay-to-play politics.

One of the bills introduced would block contractors from city business for two years following a political contribution to a candidate or political committee.

Bill 22-0038 would increase the number of lobbying reports by requiring monthly filings. Currently, reports are due twice a year.

Gov. Terry McAuliffe announced he will send the General Assembly a package of proposals aimed at campaign finance and voter law reforms.

The campaign finance proposal will seek to ban the personal use of campaign funds and he would like to see the new voter photo identification law repealed.

Another proposal would expand absentee voting, permitting any registered voter in Virginia to vote absentee in-person starting 21 days before the election. The General Assembly convenes today to begin the 2017 session.

Lobbying

Colorado: “Denver Council Approves Gift-Report Rules That Require More Frequency, Better Access” by Jon Murray for Denver Post

Campaign Finance

“Betsy DeVos, Trump’s Education Pick, Plays Hardball with Her Wealth” by Noam Scheiber for New York Times

Alaska: “Group Appeals Lawsuit Challenging Alaska Campaign Finance Laws” by Alex DeMarban for Alaska Dispatch News

California: “How This Former Aspiring Screenwriter Became One of California’s Campaign Finance Experts After Losing His Day Job” by Christine Mai-Duc for Los Angeles Times

Pennsylvania: “D.A. Candidate Donates $250,000 to Own Campaign, Triggering ‘Millionaire’s Provision’” by Jared Brey for Philadelphia Magazine

Ethics

“Trump’s Son-in-Law, Jared Kushner, to Join White House as Senior Adviser; No Formal Role for Ivanka Trump” by John Wagner and Ashley Parker for Washington Post

“House GOP Quietly Shields Lawmakers Records from Ethics Probes” by Eric Pianin (Fiscal Times) for Yahoo! Finance

Florida: “Opa-locka Politician Pleads Guilty to Bribery, as FBI Continues Corruption Probe” by Jay Weaver for Miami Herald

South Carolina: “Merrill Indictment Casts Pall Over Opening of SC Legislature” by Avery Wilks for The State

South Dakota: “Krebs Offers Package to Replace SD Ethics Initiative Under Fire” by James Nord (Associated Press) for Sioux City Journal

Tennessee: “To Combat Sexual Harassment, Tennessee Lawmakers Required to Watch 15-Minute Video” by Joel Ebert for The Tennessean

Vermont: “Hopes High for State Ethics Panel” by Neal Goswami for Rutland Herald

Lobbying

“Trump Insiders Head for Big K Street Paydays” by Isaac Arnsdorf and Kenneth Vogel for Politico

Indiana: “Tighter Rules Still Not Strict Enough for Some Lawmakers” by Maureen Hayden for Batesville Herald-Tribune

Massachusetts: “City Hall Promised Lobbying Reform. Nothing Happened.” by Mark Arsenault and Andrew Ryan for Boston Globe

Missouri: “Greitens Takes Over as Missouri Governor, Targets Lobbyists” by Summer Ballentine and David Lieb (Associated Press) for Yahoo! News

Campaign Finance

Arizona: “Cashier’s Checks, $3,000 in Cash, a Consultant and a Pastor” by Dustin Gardner and Rob O’Dell for Arizona Republic

Maryland: “Democrat Tapped for State House Charged with Illegal Donations, Won’t Be Sworn In” by Fenit Nirappil for Washington Post

Pennsylvania: “Calls Turn Developers into Donors for Peduto” by Rich Lord for Pittsburgh Post-Gazette

Ethics

“Russian Hackers Find Ready Bullhorns in the Media” by Max Fisher for New York Times

“Ethics Official Warns Against Confirmations Before Reviews Are Complete” by Ed O’Keefe and Sean Sullivan for Washington Post

“Jared Kushner, a Trump In-Law and Adviser, Chases a Chinese Deal” by Susanne Craig, Jo Becker, and Jess Drucker for New York Times

North Carolina: “Ethics Commission – Set to Become Elections Board – Secures Lawyers in Roy Cooper Lawsuit” by Colin Campbell for Raleigh News & Observer

Lobbying

“Trump’s Twitter Feed Traumatizes Washington” by Eli Stoklos and Josh Dawsey for Politico

Florida: “Taxpayers Will Keep Paying for Lobbyists in Tallahassee, Despite House Speaker, Who Calls It a ‘Disgrace’” by Steve Bousquet and Michael Auslen for Tampa Bay Times

New York: “Now a Lobbyist, Democratic Power Broker Faces Restrictions in New York Job” by Samar Khurshid for Gotham Gazette

Campaign Finance

“Libertarian Challenge to Contribution Limits Advances” by Kenneth Doyle for Bloomberg BNA

Florida: “Investigation: Florida elections loophole empowers special interests” by Lucas Daprile for TCPalm.com

Washington: “Seattle Voters Will Soon Get $100 in ‘Democracy Vouchers’ to Donate to Candidates” by Daniel Beekman for Seattle Times

Ethics

California: “City Council Embraces Transparency Provisions Pushed by New Mayor Steinberg” by Anita Chabria for Sacramento Bee

Maryland: “Federal Bribery Charges Filed over Prince George’s County Liquor Licenses” by Lynh Bui, Ann Marimow, and Arelis Hernandez for The Washington Post

Legislative Issues

“House Votes to Fine Members Up to $2,500 If They Take Videos in Chamber” by Erin Kelly for USA Today

South Carolina: “Grand Jury Indicts Rep. Chris Corley on Domestic Violence, Gun Charges” by Maya Prabhu for Charleston Post and Courier

Lobbying

Florida: “Ron Book Is Big Winner in Local Government Lobbying Contracts” by Steve Bousquet for Miami Herald

Indiana: “State Senator Introduces Ethics Bill to Ban All Gifts from Lobbyists” by Bob Segall for WTHR

Campaign Finance

“Rep. Duncan Hunter’s Team Responds to Uproar Over Rabbit Expenses” by Michael Walsh for Yahoo News

Ethics

“Trump’s Agenda Would Boost His Bottom Line” by Darren Samuelsohn for Politico

Montana: “Montana Fails to Retain Decades of Emails Despite Open Government Law” by Jayme Fraser for The Missoulian

Oregon: “Two of Kate Brown’s Staffers Resign Following Conflict of Interest Questions” by Hillary Borrud for The Oregonian

South Carolina: “South Carolina’s Pending Ethics Commission Isn’t All That Independent, Experts Say” by Maya Prabhu for The Post and Courier

Elections

“It Started with a Retiree. Now the Women’s March Could Be the Biggest Inauguration Demonstration.” by Ben Stein and Sandhya Somashekhar for The Washington Post

Virginia: “The GOP Race for Lieutenant Governor Is Getting Ugly in Virginia” by Laura Vozzella for The Washington Post

Wisconsin: “One Person, One Algorithm, One Vote: Campaigns are doing more with data, for better or worse” by Katelyn Farrell for The Capital Times

Legislative Issues

Pennsylvania: “Pennsylvania House Revises Rules for Expelling Members” by Karen Langley for Pittsburgh Post-Gazette

Lobbying

Maryland: “Interim City Solicitor Pays Rent to Powerful Lobbyist’s Firm” by Doug Donovan for Baltimore Sun

Nevada: “Nevada High School Students Learn the Legislative Ropes and Pass Real Laws” by Sandra Chereb for Las Vegas Review-Journal

Campaign Finance

California: “Political Donations Flow as Rick Caruso Seeks Approval for a 20-Story Tower Near the Beverly Center” by David Zahniser for Los Angeles Times

Ethics

“House GOP Reverses Course on Gutting Ethics Panel” by Rachel Bade for Politico

Indiana: “Critics Want Tighter Restrictions on Post-Legislative Work” by Hayleigh Colombo for Indianapolis Business Journal

Montana: “Political Practices Commissioner to Remain in Office for Now” by Matt Volz (Associated Press) for The Missoulian

Oklahoma: “Oklahoma House Has Sketchy Recent History with Policing Its Own” by Barbara Hoberock for Tulsa World

Texas: “Senator Goes for Low-Hanging Fruit in Ethics Reform” by Jay Root for Texas Tribune

Elections

Minnesota: “In Minneapolis City Council Races, So Far There’s Left, and Further Left” by Adam Betz for Minneapolis Star Tribune

Legislative Issues

Maine: “1-Sentence Draft Bills Criticized for Lack of Transparency” by Marina Villeneuve (Associated Press) for Fairfield Citizen

On January 1, the Election Finances Statute Law Amendment Act took effect, prohibiting political contributions from corporations and labor unions and lowering the province’s contribution limits from individuals.

The new law also prohibits all provincial politicians, candidates, and senior political staffers from attending fundraising events, with certain exceptions.

Third-parties, who currently face no spending restrictions on advertising, are now limited to $100,000 per election period and $600,000 in the six months before a general election is called.