July 29, 2016 • Written by Jonathan Spontarelli

News You Can Use Digest – July 29, 2016

Federal: A Worry if Clinton Wins: An idle ex-president in the White House New York Times – Patrick Healy | Published: 7/26/2016 It is not clear how Bill Clinton would function as America’s first gentleman. Advisers to Hillary Clinton said she […]

Federal:

A Worry if Clinton Wins: An idle ex-president in the White House
New York Times – Patrick Healy | Published: 7/26/2016

It is not clear how Bill Clinton would function as America’s first gentleman. Advisers to Hillary Clinton said she has not yet decided if she will offer her husband a formal role if elected but noted he will cease working for the Clinton Foundation, would not be a regular at Cabinet meetings, and will do what is asked of him. Beyond that, however, details are scant. The steps that Clinton aides are planning to shape his new life do little to address a potentially thornier problem: historically, when Bill Clinton does not have a job to do, he gets into trouble.

Democrats Discreetly Turn Attention to Presidential Prospects of the Future
New York Times – Michael Shear | Published: 7/26/2016

On the main stage at the Wells Fargo Center and along the sidelines of the Democratic National Convention, more than a dozen senators, mayors, governors, cabinet members, and state lawmakers are carefully peeking past this year’s presidential election to 2020 or 2024 as they work ballrooms full of delegates, donors, and activists who would be critical to the pursuit of a national campaign. Compared with Republicans, Democrats have seen fewer of their young members rise to top positions in Washington, D.C., which can be a springboard to the White House.

DNC Turmoil Confirms Warnings: Hackers are targeting campaigns
Politico – Eric Geller | Published: 7/24/2016

The downfall of Democratic National Committee Chairperson Debbie Wasserman Schultz marks a groundbreaking moment that cybersecurity experts have long seen coming: hackers are making a significant impact on a major U.S. political campaign. Cybersecurity experts have warned for years that campaigns and political parties are woefully weak in securing their data, despite the wealth of sensitive information they carry in their computer networks and email accounts. It is an ideal scenario for all kinds of cyber wrongdoers – foreign adversaries trying to swing elections, intelligence agencies seeking information on future officials, hacktivist groups looking to grab attention, and black market hackers trying to make a quick buck.

Donald Trump Calls on Russia to Find Hillary Clinton’s Missing Emails
New York Times – Ashley Parker and David Sanger | Published: 7/27/2016

Donald Trump dared a foreign government to commit espionage on the U.S. to hurt his rival, smashing yet another taboo in American political discourse and behavior. “Russia, if you’re listening, I hope you’ll be able to find the 30,000 emails that are missing,” Trump said, referring to deleted emails from the private account Hillary Clinton used as secretary of State. “I think you’ll probably be rewarded mightily by our press.” The comments immediately drew widespread attention because they lend the impression that Trump is actively encouraging another country to commit a cybercrime against the U.S. to directly affect the presidential election. If the emails are hacked and Trump wins, it also could make him appear beholden to foreign interests.

For Special Interests, the Real Party Is Outside the Convention
Center for Public Integrity – Carrie Levine and Dave Levinthal | Published: 7/22/2016

A Rick Springfield concert at the Republican National Convention was billed as “a tribute to the House Republican Whip Team” and was to benefit charity, even though there was no admission fee. During the convention, dozens of organizations sponsored such events, all with an interest in gaining access to lawmakers and power brokers. The gatherings are almost all crafted to fit into exemptions in gift and ethics rules that allow members of Congress to come to “widely attended events” or charitable fundraisers. “These exemptions very quickly become major loopholes to allow lobbyists and others to put on events for officeholders and allow officeholders to go to them for free,” said Lawrence Noble, general counsel for the Campaign Legal Center.

In Hacked D.N.C. Emails, a Glimpse of How Big Money Works
New York Times – Nicholas Confessore and Steve Eder | Published: 7/25/2016

The leaked documents from the Democratic National Committee included thousands of emails exchanged by party officials and fundraisers, revealing in rarely seen detail the elaborate, ingratiating, and often bluntly transactional exchanges necessary to collect hundreds of millions of dollars from the party’s wealthy donors. The emails capture a world where seating charts are arranged with dollar totals in mind, where a White House celebration of gay pride is a thinly disguised occasion for rewarding wealthy donors, and where physical proximity to the president is the most precious of currencies.

IRS Gives Opposite Rulings to Convention Committees
Bloomberg BNA – Kenneth Doyle | Published: 7/25/2016

When Cleveland’s host committee for the Republican National Convention applied for charitable tax-exempt status nearly two years ago, approval by the IRS came in just 12 days. Philadelphia’s host committee for the Democratic National Convention was not so lucky. While neither the committee nor the IRS will discuss details, it is clear that approval of the Philadelphia committee’s request for the same charitable tax-exempt status did not come quickly and ultimately was denied. The Philadelphia host committee reportedly is trying to work around fundraising problems caused by IRS disapproval of its exempt status. The full impact of the IRS ruling is not yet clear, partly because the host committee is asking a state court to keep information about its donors under wraps until a federal disclosure report must be filed with the FEC two months after the convention ends.

Lobbyists Celebrate Democratic Party’s New Embrace at Convention
Time – Jay Newton-Small | Published: 7/26/2016

Heather Podesta wore a scarlet letter “L” to the last two Democratic National Conventions, a not so subtle protest over Barack Obama’s ban on lobbyists like her donating money to his cause. Podesta’s scarlet letter is gone this week because Hillary Clinton and the Democratic National Committee have lifted the ban. Podesta is just one of a legion of lobbyists coming out of the proverbial closet this convention, free to raise money, support candidates, and be proud of it for the first time in nearly a decade. Campaign finance reformers have watched the change happen with dismay.

Report: FEC leaders, managers share blame for horrid morale
Center for Public Integrity – Dave Levinthal | Published: 7/26/2016

The office of the FEC’s inspector general for months has conducted employee surveys and interviews in hopes of answering a nagging question: why, specifically, is agency morale so consistently poor? Investigators place the most blame on the six commissioners: three Democratic appointees and three Republican appointees who have regularly criticized one another and frequently deadlocked on high-profile political issues before them. The report came about in response to separate study that ranked FEC staff morale second to last among 41 small federal agencies studied.

From the States and Municipalities:

Alaska – Oil Lobbyist Treated Legislator to Meal after Oil Tax Vote
Alaska Dispatch News – Nathaniel Herz | Published: 7/25/2016

Alaska Rep. Mike Hawker accepted a $78 dinner from an oil company lobbyist the same day Hawker went to Juneau for his first vote in two months, casting the deciding vote on an oil tax bill criticized as being too industry friendly. The meal was purchased by ConocoPhillips lobbyist Michael Hurley on June 6, the same day House Bill 247 was approved 21-to-19. Hawker’s presence was essential because the Alaska Constitution requires 21 votes for passage of a bill. Hawker is suffering from terminal cancer and had not attended a floor session since early April.

California – California Treasurer Cracks Down on Pay to Play
The Bond Buyer – Kyle Glazier | Published: 7/27/2016

California Treasurer John Chiang announced that municipal finance firms seeking state business will be required to certify they will make no contributions to local bond election campaigns. State officials are concerned with “pay-to-play” tactics in which bond counsel, underwriters, and financial advisors are offering to fund or provide campaign services in exchange for contracts to issue the bonds once they are approved by voters. The new policy applies to firms and their employees, and includes both cash and-in kind contributions made either directly or through third parties. Firms that fail to make the pledge will be removed from the state’s official list of acceptable vendors and barred from participating in state-issued bonds.

California – California Wants People to Prove They Are Not Lobbyists
KPCC – Alison Noon (Associated Press) | Published: 7/21/2016

The California Fair Political Practices Commission approved a regulatory change aimed at encouraging so-called shadow lobbyists to disclose their efforts to influence legislation. Lobbyists are required to register with the state if the amount they make for communicating with government officials reaches $2,000 in any given month. The rule change permits investigators to demand evidence about lobbyists’ compensation and financial gain related to contact with government officials. It suggests that suspected unregistered lobbyists testify or provide bills, receipts, or other records to establish their compensation was not used to get access to lawmakers or dine and entertain them.

Texas – City Wins Lawsuit Despite Appearance of Loss
Austin Monitor – Jo Clifton | Published: 7/22/2016

A federal judge ruled a blackout period banning candidates in Austin from fundraising outside of the six months before Election Day is unconstitutional. U.S. District Court Judge Lee Yeakel also overturned the dissolution requirements governing candidates’ left-over campaign money. The decision upheld the $350 individual cap on donations as well as the aggregate limit on contributions from persons who live outside the city.

Virginia – As Pick for No. 2, Tim Kaine Sees Gifts Come Under Scrutiny
New York Times – Eric Lipton and Steve Eder | Published: 7/24/2016

With U.S. Sen. Tim Kaine’s selection as Hillary Clinton’s vice-presidential running mate, the gifts he received in the four years he served as Virginia’s chief executive and his time as lieutenant governor before that are certain to be cited by his Republican critics as a sign that Kaine is not as squeaky clean as he portrays himself. An examination by The New York Times of archival email traffics from Kaine’s tenure as governor shows he received gifts, in some cases, around the same time he and his staff were considering official government requests from these donors.

Jim Sedor 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.

July 27, 2016 • Written by Jim Sedor

Wednesday Government Relations News

Lobbying Alaska: “Oil Lobbyist Treated Legislator to Meal after Oil Tax Vote” by Nathaniel Herz for Alaska Dispatch News Campaign Finance “In Hacked D.N.C. Emails, a Glimpse of How Big Money Works” by Nicholas Confessore and Steve Eder for New […]

July 22, 2016 • Written by Jonathan Spontarelli

NYCU Video Digest – July 22, 2016

Here is our latest edition of the News You Can Use Video Digest. Have a great weekend! NYCU Video Digest was produced by 2016 interns Brittany Anderson and Clémence Besnard for State and Federal Communications.

July 21, 2016 • Written by Jim Sedor

Thursday News Roundup

Lobbying “Lobbyists Have Raised $7 Million for Hillary Clinton. For Trump? Zero” by Catherine Ho for Washington Post South Carolina: “Departing S.C. House Ethics Committee Chairman Accepts Government Affairs Consulting Job” by Maya Prabhu for Charleston Post and Courier Campaign […]

July 20, 2016 • Written by Jim Sedor

Wednesday Government Relations News

Lobbying “UFC’s Payday Comes at the End of an Odyssey through Statehouses” by Richard Sandomir and Ken Belson (New York Times News Service) for Las Vegas Sun New York: “De Blasio’s Nonprofits: Were they worth it?” by Samar Khurshid for […]

July 19, 2016 • Written by Jim Sedor

Tuesday Lobbying and Campaign Finance News Update

Lobbying “Reluctant Lobbyists Descend on Cleveland” by Megan Wilson for The Hill Campaign Finance “Clinton Pledges Constitutional Amendment to Overturn Citizens United Ruling” by Benjamin Oreskes for Politico “Mike Pence Used Campaign Funds to Pay His Mortgage – and it […]

July 18, 2016 • Written by Jim Sedor

Monday News Roundup

Lobbying New York: “Jackson Lewis Lands 39-Member Wilson Elser Lobbying Group” by Christine Simmons for New York Law Journal Campaign Finance California: “Commerce Councilwoman Faces State’s Largest-Ever Penalty Against a Local Elected Official” by Adam Elmahrek for Los Angeles Times […]

July 15, 2016 • Written by Jonathan Spontarelli

NYCU Video Digest – July 15, 2016

We are excited to debut our very first weekly News You Can Use Video Digest! NYCU Video Digest was produced by 2016 interns Brittany Anderson and Clémence Besnard for State and Federal Communications.

July 15, 2016 • Written by Jonathan Spontarelli

News You Can Use Digest – July 15, 2016

National: Gay Political Power Reaching Record as U.S. Attitudes Shift Bloomberg.com – Jeff Green | Published: 7/11/2016 Opponents are planning a campaign to roll back the new rights on same-sex marriage and military service won by gay Americans this year. That […]

National:

Gay Political Power Reaching Record as U.S. Attitudes Shift
Bloomberg.com – Jeff Green | Published: 7/11/2016

Opponents are planning a campaign to roll back the new rights on same-sex marriage and military service won by gay Americans this year. That offensive, in state Legislatures and Washington, D.C., has raised the stakes in the 2016 election for the lesbian, gay, bisexual, and transgender community, which is trying to leverage its unprecedented political power to elect lawmakers who would extend federal protections at work and home to gay citizens, just as the Civil Rights Act of 1964 protected race, religion, and gender. It is difficult to put a specific dollar amount on LGBT money in politics. But there is no question the spending is much more visible than it was two decades ago, said Democratic National Committee Treasurer Andrew Tobias.

How Private Equity Found Power and Profit in State Capitols
New York Times – Ben Protess, Jessica Silver-Greenberg, and Rachel Abrams | Published: 7/14/2016

Since the 2008 financial crisis, private equity firms have expanded their influence, assuming a pervasive, if clandestine, role in American life, an investigation found. Sophisticated political maneuvering – including winning government contracts, shaping public policy, and deploying former public officials to press their case – is central to this growth. Yet even as private equity wields influence in states and in Washington, D. C., it faces little public awareness of its activities. Private equity firms often do not directly engage with lawmakers and regulators – the companies they control do. And because private equity’s interests are so diverse, the industry interacts with governments not only through lobbying, but also as contractors and partners on public projects.

Federal:

Donald Trump and Hillary Clinton Struggle to Be Unifying Voice for Nation
New York Times – Patrick Healy | Published: 7/9/2016

Traumatic events have at times become opportunities for presidential candidates to step up and grow in the eyes of the American public, such as when Bill Clinton went to Los Angeles in 1992 in the aftermath of the riots there, or when Barack Obama pushed for aggressive, bipartisan action from the federal government to stem the banking crisis and protect taxpayers. No moment in the 2016 presidential campaign has cried out more for a unifying candidate than the police shootings of two black men and the ensuing national uproar, followed by the sniper ambush that killed five police officers in Dallas. And no other moment has revealed more starkly how hard it is for Donald Trump and Hillary Clinton to become that candidate. Never have two presidential nominees been as unpopular as Trump and Clinton, and they are not fully trusted by their own parties nor showing significant crossover appeal in the polls.

Koch-Backed ‘Dark Money’ Groups Fined for Failing to Disclose Donors
Center for Public Integrity – John Dunbar | Published: 7/13/2016

The FEC fined three nonprofit groups formerly connected with the political network of Charles and David Koch a total of $233,000, a rare intervention by the agency into the world of outside spending. Each of the groups ran political advertisements to support U.S. House candidates during the 2010 election. The FEC’s investigation provides a look into the interlocking networks of political nonprofits on the right, through which vast sums of money flow each election cycle with little disclosure. Such groups are not required to report their donors and typically trade large amounts of cash during each election cycle, making it difficult to judge which dollar from which donor is used for any particular activity.

US Rep. Corrine Brown Indicted After Fraud Investigation
ABC News – Jason Dearen and Curt Anderson (Associated Press) | Published: 7/8/2016

U.S. Rep. Corrine Brown of Florida and her chief of staff, Elias Simmons, were charged with 24 counts of fraud and other crimes that prosecutors said allowed them to use an education nonprofit as a “personal slush fund.” The indictment alleges Brown and Simmons used the One Door for Education-Amy Anderson Scholarship Fund to solicit $800,000 in charitable donations between 2012 and 2016. The money was used for Brown’s personal benefit, among other things, including “tens of thousands of dollars in cash deposits” sent to her personal bank accounts, according to prosecutors. Carla Wiley, former head of the Virginia-based One Door for Education, pleaded guilty to conspiracy to commit wire fraud earlier this year and was cooperating with investigators.

From the States and Municipalities:

Alabama – Mike Hubbard Sentenced to Four Years in Prison
Tuscaloosa News – Kim Chandler (Associated Press) | Published: 7/8/2016

Former Alabama House Speaker Mike Hubbard was sentenced to four years in prison for violating the state’s ethics law. He also faces $210,000 in fines. A jury convicted him of using his office to secure consulting contracts and investments from lobbyists or those who employ them. He was also found guilty of using staff members to do work for his private clients, voting for a budget that would have benefitted a client, and lobbying Gov. Robert Bentley on behalf of a client. At trial, Hubbard’s defense team argued that many of the charges he faced fell under an exemption in the law that allows public officials to exchange things of value with those they have long-standing friendships with.

California – Lyft Agrees to $6,000 FPPC Fine for Not Reporting Lobbying Costs
Sacramento Bee – Taryn Luna | Published: 7/11/2016

The ride-hailing firm Lyft agreed to pay $6,000 in fines for repeatedly being late in disclosing its use of lobbyists to influence California officials. An investigation by Fair Political Practices Commission staff alleged Lyft failed to file in a timely manner five lobbyist employer reports. During the 2013–2014 legislative session, Lyft spent more than $271,000 on lobbying related to four transportation-regulating bills. One report was filed 530 days late, although Lyft did not conduct any lobbying during the quarter. Other reports, during which there was activity, were filed from 11 to 165 days late. “According to Lyft, the late filing was an oversight caused by Lyft’s reliance on its lobbying firms to file its reports and its lack of experience as a lobbyist employer,” the staff report said.

Louisiana – Good Idea Gone Awry? How Term Limits Impact Sessions of Louisiana Legislature
New Orleans Advocate – Mark Ballard | Published: 7/9/2016

Term limits in Louisiana, which require state representatives and senators to step down after 12 years to make way for new lawmakers, were billed by supporters as a way to create a Legislature that would be more responsive to voters and allow for thinking “outside the box” to solve persistent governmental problems. But term limits also sapped legislators of historical knowledge, hardened political positions, and undermined the relationships that are essential ingredients to actually operating the machinery of government, some lawmakers, lobbyists, and political operatives say.

Missouri – Andy Blunt Came to Washington – Was It Lobbying?
St. Louis Post-Dispatch – Chuck Raasch | Published: 7/7/2016

When it was announced last year that Andy Blunt would manage the re-election campaign of his father, U.S. Sen. Roy Blunt, Missouri Democrats accused the younger Blunt of a conflict-of-interest. In December, Andy Blunt said that “I lobby in the state of Missouri, not the United States Congress, and there is a clear distinction.” But in April, Andy Blunt helped lead a delegation of Missouri cable television executives in meetings with members of the Missouri congressional delegation or their staffs. The younger Blount said he did not consider the meetings to be lobbying. Rather, he said, they were part of an annual “meet-and-greet” trip to Washington. The revelations rekindle questions about where Andy Blunt’s lobbying for clients ends and his advocacy for his father’s re-election campaign begins.

New York – Fight Over Emails Yields New Details on Role of Outside ‘Agents’ for de Blasio
New York Times – J. David Goodman | Published: 7/7/2016

After the rocky conclusion to his first year in office, New York City Mayor Bill de Blasio sought counsel at the start of 2015 from his most trusted advisers. The mayor’s office and a few outside consultants discussed internal opinion surveys and formulated strategy on some of de Blasio’s most pressing concerns. These internal discussions about public matters are now part of a court battle as lawyers for a nonprofit aligned with the mayor are fighting to keep those emails confidential, resisting subpoenas for that information by the Joint Commission on Public Ethics. The legal strategy appeared to clarify what had been one of the more puzzling moments of the de Blasio era: the description of five outside consultants as “agents of the city.”

Ohio – Dallas Shooting and Open-Carry Laws Loom Over Cleveland Convention Plans
New York Times – Yamiche Alcindor | Published: 7/11/2016

The recent violence in Dallas is intensifying worries in Cleveland about visitors and protesters taking firearms downtown during the Republican National Convention, where thousands of people plan to demonstrate. Ohio’s open-carry laws mean that those who legally own guns can take them into the two-square-mile area where many of the events and protests connected to the convention will be held. Cleveland’s police chief said that after the Dallas shootings, the city would be changing its security plans but did not go into detail. Meanwhile, some are planning to take their own security forces to Cleveland.

Pennsylvania – Consulting Business Owned by Mike Fleck Fined $11,850 by State
Allentown Morning Call – Emily Opilo | Published: 7/11/2016

Hamilton Development Partners, a former Allentown business at the center of an FBI investigation in the city, was cited by the Pennsylvania Ethics Commission. The firm failed to file a quarterly expense report with the Department of State for the third quarter of 2015 as required by the state lobbying law. It owes an $11,850 fine – $50 per day for each of the 237 days that the report has been considered late. The firm has been ordered to file an expense report in the next 30 days or face “appropriate enforcement action.” Failure to report under the law is considered a misdemeanor punishable with an up to five-year ban on lobbying in Pennsylvania.

Tennessee – Jeremy Durham Had Sexual ‘Interactions’ with 22 Women, Report Says
The Tennessean – Dave Bouchard and Joel Ebert | Published: 7/13/2016

State Rep. Jeremy Durham engaged in inappropriate conduct with women that constitutes disorderly behavior and warrants expulsion, said a report from the Tennessee attorney general, but a special legislative committee is leaving up to voters to decide whether the embattled lawmaker will continue serving in the Legislature. The investigation found Durham had sexually engaged with current and former female legislative staff, interns, lobbyists, and others between 2012, when he first took office, and the 2016 legislative session. The main findings of the attorney general’s report mirror the office released in April, when it found Durham had engaged in inappropriate physical contact and potentially posed a “continuing risk to unsuspecting women.” That determination led to Durham’s office being moved out of Legislative Plaza and his access to staff limited.

Washington – Supporters of Campaign Finance Measure Submit Signatures
Yakima Herald – Rachel LaCorte (Associated Press) | Published: 7/8/2016

More than 326,000 signatures have been turned in to the Washington secretary of state’s office in support of a proposed ballot measure that would make a series of campaign finance changes. Initiative 1464 seeks to do several things, including creating a voucher system that would give voters three $50 “democracy credits” that they can use in state races every two years. It would also impose tougher disclosure requirements on political advertisements and limit the amount of money that contractors and lobbyists can give to candidates. The ballot measure also would impose a three-year waiting period before former elected officials and senior staff can lobby their previous employers and colleagues. An initiative requires at least 246,372 valid signatures of registered state voters to be certified.

Wisconsin – Ex-AG Lautenschlager Named to Lead New Ethics Commission
Milwaukee Journal Sentinel – Patrick Marley | Published: 7/11/2016

Former Wisconsin Attorney General Peg Lautenschlager was selected as chairperson of the state’s new Ethics Commission, and the job of administrator was given to a former analyst of the nonpartisan board the panel was created to replace. Lautenschlager had to pay a fine to the previous ethics agency following her arrest for drunken driving in 2004. Brian Bell accepted the offer to be the administrator of the commission. He is a budget and policy analyst for the Wisconsin Department of Safety and Professional Services. He also previously worked for the Government Accountability Board as an ethics and accountability specialist.

Jim Sedor 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.

July 13, 2016 • Written by Jim Sedor

Wednesday Government Relations News

Lobbying “Lyft Agrees to $6,000 FPPC Fine for Not Reporting Lobbying Costs” by Taryn Luna for Sacramento Bee Campaign Finance Florida: “Raising Money for the Mayor, and Making Money from His Administration” by Douglas Hanks for Miami Herald New Jersey: […]

July 8, 2016 • Written by Jonathan Spontarelli

News You Can Use Digest – July 8, 2016

Federal: Can Super PACs Be Put Back in the Box? Washington Post – Matea Gold | Published: 7/6/2016 A powerhouse legal team representing a bipartisan group of members of Congress and candidates is unleashing a new effort to overturn the case […]

Federal:

Can Super PACs Be Put Back in the Box?
Washington Post – Matea Gold | Published: 7/6/2016

A powerhouse legal team representing a bipartisan group of members of Congress and candidates is unleashing a new effort to overturn the case that gave rise to super PACs, part of a new strategy to rein in the big money that has poured into campaigns since 2010. They are targeting a case decided by U.S. Court of Appeals for the District of Columbia Circuit in 2010: SpeechNow.org v. FEC. That decision permitted a conservative group to raise money beyond the contribution limits placed on traditional PACs because it planned to spend its funds independently of a candidate or party. In doing so, the appellate court paved the way for new political vehicles, later dubbed super PACs for their ability to accept unlimited amounts from individuals and corporations.

F.B.I. Director James Comey Recommends No Charges for Hillary Clinton on Email
New York Times – Mark Landler and Eric Lichtblau | Published: 7/5/2016

FBI Director James Comey said his agency is recommending that no charges be brought against Hillary Clinton in connection with her email use while secretary of State. “No reasonable prosecutor” would bring such a case, Comey said. But although the FBI is not recommending charges, Comey did strongly criticize Clinton’s handling of classified information in her email, calling is “extremely careless.” The announcement comes three days after FBI agents and Justice Department officials interviewed Clinton. The FBI has been seeking to determine whether Clinton or any of her aides had mishandled classified information in connection with her email. The inspector general of the intelligence agencies had said the emails contained information that was classified at the time they were sent but were not marked classified, and the information should never have been sent on an unclassified system.

Koch Brothers’ Plight Likened to That of Civil Rights Workers in the 1950s
Center for Public Integrity – John Dunbar | Published: 7/5/2016

Charles and David Koch and civil rights pioneers have faced threats and harassment from those who disagree with their views, and each is entitled to privacy when it comes to disclosing certain kinds of information to the government, a federal judge ruled. But the decision has been controversial; comparing the travails of billionaires to the violent threats endured by civil rights workers in the 1950s is more than a stretch, say some of those familiar with the case – it is offensive. The case represents just the latest front in an ongoing battle being waged by a range of mostly conservative groups attempting to keep donors to political nonprofits hidden from view. Many of the legal battles revolve around interpretation of a crucial civil rights case from 1958: NAACP v. Alabama.

Lockheed’s Top Government Affairs Official Not Registered as Lobbyist
Politico – Austin Wright and Jeremy Herb | Published: 7/3/2016

The top government affairs official at Lockheed Martin, the world’s largest defense contractor, has not registered as a lobbyist. The company maintains that Robert Rangel, its senior vice president for government affairs since early last year, is not required to disclose his efforts to influence Congress and the executive branch. He does not meet all the legal requirements outlined in the law that governs lobbying disclosures, Lockheed says, including the percentage of his time he actually spends trying to influence government officials. His decision not to register, however, goes against both company precedent and the practices of other top defense firms.

Special Interests Look to Influence Political Conventions – Discreetly
Center for Public Integrity – Carrie Levine | Published: 7/7/2016

Corporations, unions, and other special interests will spend tens of millions of dollars to bankroll festivities at the Democratic and Republican national conventions. Some high-profile companies and individual donors are scaling back on giving to the host committees as they want to distance themselves from controversies surrounding Donald Trump. Meanwhile, many special interests will participate in convention-related activities, but they have become more creative in how they influence conventioneers, or are refusing to discuss their convention plans. “They want to show up, they want to rub elbows with everyone at the conventions, they just don’t want the corporate name out there,” said Craig Holman, a lobbyist for Public Citizen who has tracked influence efforts at the conventions.

The Lobbying Reform That Enriched Congress
Politico – Isaac Arnsdorf | Published: 7/3/2016

In the wake of the Jack Abramoff scandal, Democrats seized on the chaos to retake both chambers of Congress, promising voters they would change what they called a “culture of corruption.” Their attempt to make good on that promise, the Honest Leadership and Open Government Act of 2007, was embraced by both parties as a historic breakthrough. But critics say the result of the law is very nearly the opposite of what the American public was told it was getting at the time. Not only did the lobbying reform bill fail to slow the “revolving door,” it created an entire class of professional influencers who operate in the shadows.

From the States and Municipalities:

Connecticut – Anthem-Cigna Controversy Exposes Gaps in Ethics Rules
Connecticut Mirror – Mark Pazniokas | Published: 7/5/2016

Connecticut Insurance Commissioner Katharine Wade’s refusal to recuse herself from ruling on the Anthem-Cigna merger has provoked a reappraisal of state ethics regulators, who heavily rely on the self-reporting of public officials, and an ethics code that may be clearer to lawyers than lovers of English. Wade, a former Cigna vice president of government affairs, in February did not try to hide the fact that her staff was reviewing Anthem’s application to acquire Cigna for $54 billion. “On behalf of the Department, I signed a contract with an independent economist to assist Department staff in their review of the Anthem Form A application. Presently, there are no Cigna matters before me,” Wade wrote to the Office of State Ethics. Wade declined recently to say what basis she concluded there were no Cigna matters before her under the meaning the state ethics code, given that she already has asserted her intention to rule on the merger.

Massachusetts – Senate Slow to Embrace DeLeo Ethics Panel
Lowell Sun – Matt Murphy (State House News Service) | Published: 7/7/2016

Massachusetts House Speaker Robert DeLeo’s efforts to jumpstart a review of the state’s ethics, campaign finance, and lobbying laws has hit a roadblock in the Senate, where leaders so far have refused to go along out of concern the broad scope of the speaker’s proposed review would lead to a dead end. DeLeo had offered a resolve that would have created a joint task force of the House, Senate, and Gov. Charlie Baker’s administration to review the state’s complex ethics laws. The House referred the speaker’s proposal to a joint committee, but so far the Senate has refused to admit the bill, leaving open the possibility that the House could choose to work with the governor alone on the review.

Michigan – Unions Win Injunction Blocking Michigan Fundraising Law
Detroit News – Jonathan Oosting | Published: 7/1/2016

A U.S. District Court Judge granted a preliminary injunction against a law passed by the Michigan Legislature last year that would make it easier for corporations to deduct money from employees’ paychecks for their own PACs while forbidding them from making similar deductions on behalf of labor unions. It is the second preliminary injunction from a federal judge against a provision of the law, which also prohibited local government officials from distributing information about ballot proposals, a restriction dubbed a “gag order” by critics.

Minnesota – Lobbying in Minnesota: Spending has nearly doubled since 2002
St. Paul Pioneer Press – Rachel Stassen-Berger | Published: 7/4/2016

Special interest groups have spent $800 million lobbying government officials in Minnesota over the last 13 years. The St. Paul Pioneer Press review also found the amount of annual spending has doubled and the number of lobbying clients has tripled. Business interests have dominated the spending annually, making up about half of the lobbying expenditures every year since 2002. Utilities have spent the most, followed by the health industry. Spending or the lack thereof does not always translate to influence, however. Good lobbyists, say lobbyists and lawmakers alike, know that. “Lobbyists don’t write laws … lobbyists write ideas. Lobbyists write suggestions,” said Tom Lehman, who has been a lobbyist for 26 years.

New York – Agency Clears Mayor de Blasio and Nonprofit of Campaign Finance Violations
New York Times – Vivian Yee | Published: 7/6/2016

The New York City Campaign Finance Board determined a nonprofit closely linked to Mayor Bill de Blasio did not spend money to bolster the mayor’s re-election bid, but the board said the group’s spending raised serious policy issues. The board said Campaign for One New York’s 2014 spending was not campaign-related, primarily because it occurred so far from the mayor’s re-election race in 2017. Yet the board appeared to find much that was troublesome, if not illegal, in the behavior of the nonprofit, which has amassed millions of dollars in donations to push for City Hall initiatives. The board also clarified rules governing nonprofit advocacy groups that are affiliated with politicians.

New York – In Inquiry into Ex-Cuomo Aide, Disclosure Form Only Adds Mystery
New York Times – Vivian Yee | Published: 7/5/2016

Two companies listed in a financial disclosure form from 2014 belonging to Joseph Percoco, who for many years was New York Gov. Andrew Cuomo’s closest aide, seem to be at the heart of a sprawling federal investigation encircling Cuomo’s administration. One firm, Chris Pitts LLC, is named for a minor Democratic activist in rural Connecticut who, until recently, lived with his sister and got around town in an aging Chevrolet. The other, COR Development Company, is one of the most prominent real estate developers in central New York. In an investigation with few signposts for those outside the U.S. attorney’s office in Manhattan, Percoco’s disclosure is the nearest thing to a map key. Yet the connection between the Percoco and COR and Chris Pitts LLC. is not as straightforward as the black and white of an official form might imply.

New York – JCOPE Shut Down in Lobbying Reform
Queens Chronicle – Michelle Kraidman | Published: 6/30/2016

The Joint Commission on Public Ethics (JCOPE) in February approved an advisory opinion that required paid consultants, who “controlled the delivery” of a message to editorial boards encouraging them to support positions that were favorable to a client, to register as lobbyists. They also would have had to report their contacts with media outlets’ opinion writers. That led to great opposition as accredited media sources, and several public relations and consulting firms sued JCOPE, arguing the new regulations were unconstitutional. Now, a statement released by the governor’s office announced that the agreed-upon legislation for an ethics reform plan does not include what JCOPE had originally recommended. “[The agreement] explicitly excludes communications with journalists, including editorial boards, from the definition of lobbying and exclude these communications from lobbying regulation,” the statement said.

Rhode Island – Raimondo: Lobbying law makes rules ‘clear, simple, consistent and transparent’
Providence Journal – Jennifer Bogdan | Published: 7/6/2016

In a ceremonial signing of lobbying legislation, Rhode Island Gov. Gina Raimondo described the changes as making the rules “clear, simple, consistent, and transparent.” The legislation, which goes into effect on January 1, clarifies who is a lobbyist and what constitutes lobbying. The penalty for failure to register is a fine of up to $50,000 and revocation of lobbyist registration for up to three years. Lobbyists will also be required to file monthly public reports of their activities from January to June and quarterly reports from July to December. The reports must include all compensation received, all expenditures made, and “all money and anything of value provided or promised to any legislative or executive branch official” in excess of $250.

Jim Sedor 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.

July 7, 2016 • Written by Jonathan Spontarelli

Idaho Ballot Initiative Group Fails to Collect Enough Signatures

An attempt to place an initiative on the November ballot to overhaul state campaign finance and ethics regulations has failed. The Keep Idaho Elections Accountable campaign, chaired by Democrat Holli Woodings, failed to collect the 48,000 signatures needed, coming up […]

July 7, 2016 • Written by Jonathan Spontarelli

Ask the Experts – 2016 Party Conventions

Q. In what ways are my company and I allowed to get involved in the 2016 national party conventions? A. The opportunities for individuals and companies to involve themselves in this year’s party conventions are legion, but caution must be […]

Q. In what ways are my company and I allowed to get involved in the 2016 national party conventions?

A. The opportunities for individuals and companies to involve themselves in this year’s party conventions are legion, but caution must be exercised to avoid running afoul of the many intersecting laws governing your interaction with the delegates and other officials in attendance as well as the committees putting on the conventions.

Convention delegates and those seeking selection as delegates are subject to the federal contribution rules, which means corporations, labor organizations, foreign nationals and businesses, and federal contractors are not permitted to make contributions. However, those permitted to contribute may do so without limits. Delegates who are public officials are subject to the gifts laws governing the office they hold. In other words, federal officials are subject to federal gift laws, state officials are subject to state gift laws, and local officials are subject to any state and local laws applicable to their office.

Individuals and organizations seeking to become involved with the conventions may contribute to the convention host committees. The host committees are nonprofit organizations set up to encourage commerce in and project a favorable image of the convention city. Organizations and individuals may donate money and make in-kind donations to the host committee to defray the costs of the convention, including costs related to promoting the city and welcoming attendees, providing information and samples to attendees, administrative expenses, providing the use of convention facilities, transportation, law enforcement, hotel rooms, accommodations and hospitality for party site selection groups, and for other convention-related facilities and services.

Convention committees are related to the national party organizations and therefore federal campaign finance laws apply. As a result, direct and in-kind contributions using funds from a corporation, labor organization, foreign nations and businesses, and federal contractors are prohibited. Goods and services may be provided to the national committee in the ordinary course of business. Obviously, it’s quite important to distinguish the host committees from the convention committees. Thankfully, both host committees, the Cleveland 2016 Host Committee and the Philadelphia 2016 Host Committee, use the word “host” in their official names.

The national party conventions represent high profile ways to gain exposure both personally and for your organization. This high profile is also why compliance with the rules governing your dealings with committees, delegates, and attendees is so important.

You can directly submit questions for this feature, and we will select those most appropriate and answer them here. Send your questions to: experts@stateandfed.com.

(We are always available to answer questions from clients that are specific to your needs, and we encourage you to continue to call or e-mail us with questions about your particular company or organization. As always, we will confidentially and directly provide answers or information you need.) Our replies to your questions are not legal advice. Instead, these replies represent our analysis of laws, rules, and regulations.

July 5, 2016 • Written by Jonathan Spontarelli

Oregon Ethics Commission Seeks Tighter Lobbyist Registration Rules

The Oregon Government Ethics Commission has asked Gov. Kate Brown to introduce legislation in 2017 to strengthen lobbying registration requirements. The commission wants to crack down on the registration exception that allows persons spending less than 24 hours or $100 […]

News You Can Use Digest – July 29, 2016

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Thursday News Roundup

Wednesday Government Relations News

Tuesday Lobbying and Campaign Finance News Update

Monday News Roundup

NYCU Video Digest – July 15, 2016

News You Can Use Digest – July 15, 2016

Wednesday Government Relations News

News You Can Use Digest – July 8, 2016

Idaho Ballot Initiative Group Fails to Collect Enough Signatures

Ask the Experts – 2016 Party Conventions

Oregon Ethics Commission Seeks Tighter Lobbyist Registration Rules

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