National:

Report: It’s harder to know who’s paying for political ads
Star Tribune – Geoff Mulvilhill (Associated Press) | Published: 6/27/2016

A report by New York University’s Brennan Center finds the use of so-called dark money in several states has increased faster than in national elections. Across six states – Alaska, Arizona, California, Colorado, Maine, and Massachusetts – dark money expenditures rose by 38 percent between 2006 and 2014, outstripping the 34 percent rate of increase found in federal elections. And that does not include other categories of nontransparent outside money. The report defines “gray money” as expenditures by entities that do disclose their contributors, but who also list dark money organizations as donors, making it difficult or impossible to locate the original source of the money.

Two Transgender Candidates – Both Named Misty – Just Made History by Winning Primaries
Washington Post – Amber Phillips | Published: 6/29/2016

Primary voters in Utah and Colorado selected transgender women to run for spots in Congress next fall, a first in major-party American political history. Misty Snow will run against U.S. Sen. Mike Lee in Utah this November, while Misty Plowright will challenge U.S. Rep. Doug Lamborn in Colorado. Neither Snow nor Plowright sought to make their gender identities a campaign issue, instead focusing on progressive issues like getting money out of politics. Their wins come as transgender rights have been thrust into the national spotlight after contentious debates in states like North Carolina. “This is even more breathtaking considering the political climate today, the uphill curve to educate people about who transgender people are,” said Bob Witeck, a Washington, D.C.-based LGBT advocate.

Federal:

Bernie Sanders Campaign Showed How to Turn Viral Moments into Money
New York Times – Nick Corasaniti | Published: 6/24/2016

Like most modern campaigns, U.S. Sen. Bernie Sanders and his team relied on widely used digital fundraising tactics, like sending email solicitations and advertising online. They raised more than $61 million and acquired more than three million email addresses directly from digital ads. But the campaign was also able to harness social media networks – which, until recently, most candidates had used primarily for messaging purposes – and turn them into fundraising engines, allowing Sanders’ team to raise money almost exclusively online. The campaign raised roughly $216 million of its nearly $230 million total online.

Donald Trump and R.N.C. Crack Down on Rebelling Delegates
New York Times – Jeremy Peters | Published: 6/26/2016

Donald Trump’s campaign and the Republican National Committee (RNC) are moving quickly and aggressively to head off the fledgling effort to stage a revolt at their July convention in Cleveland, hoping to spare the party an embarrassing spectacle that could deeply wound the presumptive nominee. They are employing hard-nosed tactics, warning delegates that attempting to undermine Trump’s claim to the nomination violates party rules, and threatening to deny speaking slots to Republicans they deem disloyal for not backing him. The RNC and the campaign are also installing loyal party stalwarts in key party positions to help ensure they maintain control of the convention if rogue delegates attempt a disruption. And they are trying to discredit Republicans who are advocating an interpretation of party rules that would allow delegates to vote for anyone they want on the first ballot.

Trump Fundraising Emails Overseas Prompt Complaints Here and Abroad
Washington Post – Sean Sullivan and Max Bearak | Published: 6/29/2016

Donald Trump’s campaign sent a wave of fundraising emails in recent days to lawmakers in the United Kingdom, Iceland, Australia, and elsewhere. The solicitations prompted watchdog groups to file two separate complaints with the FEC alleging the campaign was violating federal law by soliciting funds from foreign nationals. The episode is only the latest fundraising stumble by Trump’s presidential campaign, which has been scrambling to put together a financial operation to take on the well-funded campaign of likely Democratic nominee Hillary Clinton. Whether the snags prove to be growing pains for a campaign that until recently eschewed traditional fundraising or a sign of more serious stumbles to come is a key question facing Trump and the Republican Party as the general election comes into focus.

From the States and Municipalities:

California – At the Corner of Power and Poverty
CALmatters – Laurel Rosenhall | Published: 6/28/2016

The Capitol in Sacramento serves as a magnet for money and power. Nearby shops sell fine cigars and custom suits. A bar serves $16 martinis. But the streets that surround the building also are home to some of the city’s most destitute residents, many suffering from mental illness or drug addiction in addition to extreme poverty. It is not uncommon to see them rifling through trash cans, shouting incoherently, or sleeping barefoot in the shade on the Capitol’s manicured grounds. Bridging these two worlds is Debbie Bartley, who stands across the street selling Homeward, a newspaper produced by homeless people. She chats with the political staffers and lobbyists who give her a few dollars as they pass by. Then she buys food for people who sleep on these streets.

California – Sweeping Public Utilities Commission Changes Announced
Sacramento Bee – Jeremy White | Published: 6/27/2016

A deal between Gov. Jerry Brown and state lawmakers will bring major changes to the California Public Utilities Commission. When commissioners engage in ex-parte conversations around rate-setting rules, they would need to disclose them online under the agreement. The state attorney general could bring enforcement actions against people who violate the rules. The deal also clarifies that people who lobby the PUC would need to register as lobbyists. Through March of this year, more than 50 utilities and other lobbyist employers reported more than $6.3 million in PUC-connected lobbying activities.

Connecticut – Cigna-Anthem Merger: Gov. Malloy’s Insurance Regulator Told Ethics Officials She Was Not Involved in Cigna Issues, even as Her Agency Was
International Business Times – David Sirota | Published: 6/27/2016

Connecticut ethics officials are now investigating whether it is legally permissible for the state’s insurance commissioner to oversee the government’s review of her former company’s proposed merger. In regulators’ probe of conflict-of-interest issues in the Cigna-Anthem transaction, one question they may ask is whether the commissioner in question, former Cigna lobbyist Katharine Wade, deliberately misled them. Emails show that in February, Wade told ethics officials she had no Cigna business before her, even though her agency was then leading the national multistate review of the company’s merger plan, and even though Wade had repeatedly met with the company’s representatives. Wade’s letter to ethics officials did tell them that her staff was reviewing the merger, but did not disclose any information about her own contacts with the companies and their lobbyists.

Delaware – Supreme Court Rejects Challenge to Delaware Election Law
Wilmington News Journal – Jessica Masulli Reyes | Published: 6/28/2016

The U.S. Supreme Court rejected a conservative group’s challenge to Delaware’s campaign finance law. The justices left in place a lower court ruling allowing the 2012 law to be enforced. It requires third-party groups and individuals to disclose their donors to the state elections commissioner if they publish advertisements or other communications, including Internet postings, that refer to a candidate in the 60 days before an election. Previously, only groups that directly advocated for or against a candidate were required to disclose their donors.

Kentucky – Bevin Asserts Control of All Ethics Board Appointments
Lexington Herald-Leader – Jack Brammer | Published: 6/28/2016

Kentucky’s attorney general and state auditor will no longer be able to nominate members of the Executive Branch Ethics Commission under a new executive order from Gov. Matt Bevin. The governor appoints the members of the commission, which investigates allegations of state ethics code violations in the state’s executive branch. But in 2008, then-Gov. Steve Beshear issued an executive order requiring the governor to appoint two members of the commission that had been recommended by the attorney general and the state auditor. Bevin repealed that order, effectively allowing him to control all of the appointments to the board assigned to hold his administration accountable. Bevin spokesperson Jessica Ditto said the order simply returns the appointment process to the system state lawmakers intended.

New York – Bill Would Expand Disclosure for Donors to Lobbying Groups
Albany Times Union – Chris Bragg | Published: 6/29/2016

Under a 2011 law, charitable tax-exempt nonprofits in New York are not required to report their donors, even if the organizations have financially supported lobbying efforts meant to influence state government. Based on comments from state lobbying officials, a bill that Gov. Andrew Cuomo is expected to sign appears to require any charitable organization making a contribution over $2,500 to a substantial New York lobbying campaign to publicly disclose every one of its donors, even those unrelated to the lobbying effort. That would include both donations of staff and other resources for a charity to a lobbying nonprofit, or a monetary contribution.

Ohio – As Activists Prepare to Protest the RNC, the FBI Comes Knocking
Los Angeles Times – Matt Pearce | Published: 6/27/2016

In July, Donald Trump will come to Cleveland to claim the Republican presidential nomination. Given how turbulent some protests outside Trump rallies have been, and that the convention comes just weeks after the worst mass shooting in recent U.S. history, finding the right balance between security and First Amendment rights will be a challenge. Shivers have gone through the Cleveland activist community since law enforcement officials began knocking on their doors as tens of thousands of visitors prepare to come to town. The FBI office in Cleveland said the visits were part of their plans with state and local law enforcement to prepare for the convention by “working collaboratively with members of the community.”

Virginia – Supreme Court Vacates Ex-Virginia Governor’s Graft Conviction
New York Times – Adam Liptak | Published: 6/27/2016

The U.S. Supreme Court unanimously vacated the conviction of former Virginia Gov. Robert McDonnell. He was charged with using his office to help Jonnie Williams Sr., who had provided McDonnell and his wife with gifts worth more than $175,000 when McDonnell was governor. The gifts themselves were legal; the question was whether they were part of a corrupt bargain in which McDonnell reciprocated by using the power of his office to help Williams. The Supreme Court ruled prosecutors defined too broadly the kind of conduct that qualifies as an “official act.” Chief Justice John Roberts said the law cannot punish politicians for giving their constituents access to public officials who are willing to listen, but do not actually exercise government power.

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.

Broward Health, the county’s hospital system, is currently creating an online lobbyist registration system to coincide with its recently discovered registration policy.

The policy, created 12 years ago, was never implemented and came to light only after months of discussions by the board of commissioners on how to create such a policy.

The policy requires lobbyists to identify their clients, disclose the nature of their business activities, and report any business or financial relationships with Broward Health board members. The online system will be modeled after those of Broward County and Broward Public Schools.

The D.C. Council has preliminarily approved a bill that will bring more transparency and accountability to the government procurement process. Among other structural and procedural reforms, the measure establishes the Office of the Ombudsman for Contracting and Procurement.

The bill will need approval at a second reading before it is sent to the Mayor. A stricter reform measure that included a one year pay-to-play restriction failed to pass.

Campaign Finance

“House Democrats Face Ethics Complaints for Fundraising Off Sit-In” by Paul Singer for USA Today

“Soft Money Ban Should Be Scrapped, Skeptical Judges Urged” by Kenneth Doyle for Bloomberg BNA

“Bernie Sanders Campaign Showed How to Turn Viral Moments into Money” by Nick Corasaniti for New York Times

Delaware: “Supreme Court Rejects Challenge to Delaware Election Law” by Jessica Masulli Reyes for Wilmington News Journal

Mississippi: “Hosemann to Start Searchable Campaign Finance System” by Geoff Pender for Jackson Clarion-Ledger

Ethics

Kentucky: “Bevin Asserts Control of All Ethics Board Appointments” by Jack Brammer for Lexington Herald-Leader

New Mexico: “Judge: Legislators must testify in Griego case” by Dan Boyd for Albuquerque Journal

North Carolina: “Sen. Fletcher Hartsell Indicted by a Wake County Grand Jury” by Anne Blythe and Lynn Bonner for Raleigh News & Observer

Wisconsin: “New Ethics Commission Names 3 Finalists for Administrator Position” by Matthew DeFour for Wisconsin State Journal

Elections

“As Activists Prepare to Protest the RNC, the FBI Comes Knocking” by Matt Pearce for Los Angeles Times

Lobbying

California: “Sweeping Public Utilities Commission Changes Announced” by Jeremy White for Sacramento Bee

Campaign Finance

“Report: It’s harder to know who’s paying for political ads” by Geoff Mulvihill (Associated Press) for Las Vegas Sun

Kentucky: “Ethics Commission OKs Crowdfunding for Legislative Campaigns” by Ryland Barton for WFPL

Massachusetts: “State’s Chief Campaign Official Seeks Heftier Fines for PACs” by Matt Stout for Boston Herald

Ethics

Connecticut: “Cigna-Anthem Merger: Gov. Malloy’s Insurance Regulator Told Ethics Officials She Was Not Involved in Cigna Issues, even as Her Agency Was” by David Sirota for International Business Times

Florida: “Opa-locka’s Ethics Switcheroo Draws Laughs amid FBI Corruption Probe” by Jay Weaver for Miami Herald

South Carolina: “Gov. Nikki Haley Signs Ethics Reform into Law, Endorses Sen. Larry Martin” by Maya Prabhu for Charleston Post & Courier

Virginia: “Supreme Court Vacates Ex-Virginia Governor’s Graft Conviction” by Adam Liptak for New York Times

Elections

“Donald Trump and R.N.C. Crack Down on Rebelling Delegates” by Jeremy Peters for New York Times

Redistricting

North Carolina: “Supreme Court to Review NC’s Use of Race in Redistricting” by Jonathan Drew (Associated Press) for ABC News

National:

Courts, Judges Become Top Political Targets in 2016 Elections
Kansas City Star – Dave Helling | Published: 6/17/2016

Experts say that while complaints about legal rulings are as old as the republic, politicians have started turning virtually every race into a referendum on the courts, threatening public confidence in an independent, apolitical judiciary. Not everyone is equally concerned. In a polarized, dysfunctional political climate, some say, making judges more accountable to voters and taxpayers is healthy and inevitable.

The Kochs’ Powerful Operation Isn’t Aimed at Helping Trump – But It Might Anyway
Washington Post – Matea Gold | Published: 6/20/2016

Americans for Prosperity (AFP) launched ground operations on behalf of Republican incumbents in Pennsylvania, Ohio and Wisconsin, the earliest the Koch brothers-affiliated group has ever begun making explicit political appeals in the field. But AFP and other groups in the brothers’ political network are mute when it comes to Donald Trump. It is an odd situation for the powerful conservative operation, which was expected to harness its sprawling machinery on behalf of this year’s Republican nominee. But Trump’s incendiary rhetoric and inconsistent policy stances have dismayed Charles Koch, the billionaire industrialist who leads the network. Koch-backed groups are now training their resources on boosting vulnerable GOP Senate candidates.

Federal:

Democrats End Sit-In on House Floor While Promising to Continue to Press for Gun Votes
Washington Post – Karoun Demirjian, Kelsey Snell, and Ed O’Keefe | Published: 6/23/2016

U.S. House Democrats ended their sit-in protest after occupying the chamber’s floor for more than 25 hours, vowing to take the push for new gun curbs to their congressional districts. Even after Republicans had departed for a week-long recess, roughly a dozen Democrats held the floor, with more trickling in, after a night of loud confrontations with the chamber’s GOP leaders. The Democrats had demanded votes on legislation to expand background checks to all commercial sales and to prevent suspected terrorists from being able to buy guns. Republicans dismissed Democrats’ demands, saying they would not reward the minority party for trampling over the chamber’s rules.

Donald Trump Starts Summer Push with Crippling Money Deficit
New York Times – Nicholas Confesore and Rachel Storey | Published: 6/20/2016

Donald Trump enters the general election campaign laboring under the worst financial and organizational disadvantage of any major party nominee in recent history, placing both his candidacy and his party in political peril. Trump loaned his campaign $2.2 million in May and collected $3.1 million in donations, ending the month with less than $1.3 million in bank, a figure more typical for a campaign for the U.S. House than the White House. Hillary Clinton raised more than $28 million in May and started June with $42 million in cash. Trump has a staff of around 70 people, compared with nearly 700 for Clinton, suggesting only the barest effort toward preparing to contest swing states this fall. And he fired his campaign manager after concerns among allies and donors about his ability to run a competitive race.

Fattah Convicted of Federal Corruption Charges
Philadelphia Inquirer – Jeremy Roebuck | Published: 6/21/2016

U.S. Rep. Chaka Fattah was found guilty of all charges in a federal corruption trial. He and several associates had been charged with 29 counts related to bribery, money laundering, fraud, and racketeering. Fattah borrowed $1 million from a donor during his unsuccessful campaign for Philadelphia mayor and later repaid part of the loan by using funds from charitable and federal grants received by his nonprofit. Prosecutors said he also used funds from his mayoral and congressional campaigns to help pay off his son’s student loan debt. In addition, the indictment said Fattah accepted bribes while trying to secure an ambassadorship or appointment to the U.S. Trade Commission for former Philadelphia Deputy Mayor Herbert Vederman.

The Next ‘Citizens United’ Is Coming
Center for Public Integrity – Carrie Levine | Published: 6/22/2016

James Bopp, who successfully argued the Citizens United case before the U.S. Supreme Court, is now the lead lawyer in the most prominent of a series of lawsuits attempting to further rescind campaign contribution limits. The case brought by the Louisiana Republican Party addresses restrictions on how state and local political parties use soft money to influence federal elections. Bopp’s clients argue if independent outside groups such as super PACs are permitted to raise and spend unlimited amounts of such money, there is no reason why state political parties, acting independently of federal candidates, should be treated differently. Bopp says he will not rest until there are as few election rules as possible since he believes too many rules lead to more opportunities to game the system.

From the States and Municipalities:

California – California Political Watchdog Targets ‘Shadow Lobbyists’
Sacramento Bee – Taryn Luna | Published: 6/21/2016

The California Fair Political Practices Commission (FPPC) is considering a regulatory change to draw “shadow lobbyists,” consultants paid to influence legislation, into the public eye. Loopholes in the law can allow consultants to act as lobbyists without officially registering with the secretary of state’s office, disclosing their clients, or their attempts to sway lawmakers. The FPPC hopes the change increases the incentive for consultants and others working in and around the state’s lobbying industry to keep better records of their activities, while giving the agency more freedom to press cases against shadow lobbyists. The commission is expected to vote on the change at its regularly scheduled hearing on July 21.

Colorado – Colorado Supreme Court to Hear Case Challenging State Ethics Commission’s Role
Denver Post – Joey Bunch | Published: 6/21/2016

The Colorado Supreme Court agreed to hear issues in a case involving then-Secretary of State Scott Gessler, marking the first time the justices have looked at how the Independent Ethics Commission operates since it was created in 2006. The ethics panel found Gessler violated the public trust when he used money from his office discretionary fund to attend a GOP lawyer’s event in Florida. He extended the trip to attend the Republican National Convention (RNC). Gessler paid for his lodging and meals at the RNC with campaign funds. The Supreme Court will look at whether the commission exceeded its jurisdiction to ban gifts of more than $53 a year to public officials and bar them from becoming lobbyists for two years after leaving office.

District of Columbia – Close Council Vote Rejects Campaign Contribution Reform
DCist.com – Rachel Kurzius | Published: 6/21/2016

The District of Columbia Council struck down a proposal to ban campaign contributions from city contractors. Council Chairperson Phil Mendelson had included a provision in a bill to reform the city’s procurement process that would have banned donations from people or businesses that have or are seeking city contracts. He argued that doing so would improve the public perception of the city’s elected officials. But Councilperson Vincent Orange introduced an amendment to strike that language, saying it would lead to “dark money” flooding into city campaigns.

Florida –  Florida Lawmaker Wants to Give Away an AR-15
New York Times – Mike McPhate | Published: 6/21/2016

Florida Sen. Greg Evers, a Republican who is running for Congress, said he would hold a drawing whose prize would be an AR-15, a gun similar to the one used by Omar Mateen to kill 49 people at a gay nightclub in Orlando on June 12. Evers said he was considering the giveaway since before the mass shooting, intending to burnish his pro-gun credentials in Florida’s conservative western Panhandle, where he is running to fill the seat being vacated by U.S. Rep. Jeff Miller. But the timing of the announcement, even as funerals for the shooting victims continued, led many commenters on Evers’s campaign site and his Twitter account to express disgust.

Maryland – Here Are the Top Lobbyists in Maryland for the 2016 Legislative Session
Washington Post – Ovetta Wiggins | Published: 6/22/2016

The return of divided government to Maryland has brought about much change in Annapolis. But one thing that has remained the same since the election of Republican Gov. Larry Hogan is Gerard Evans’ upper hand in state lobbying. Evans, a longtime fixture in Annapolis, was the top earner among Maryland lobbyists during the recent legislative session. He reported billing his clients nearly $2 million between November and April, which is about $168,000 more than last year, when he was also the top earner. Bruce Bereano came in second both last year and this year, with reported billings of $1.4 million.

New York – 3 New York Police Commanders Are Arrested on Corruption Charges
New York Times – William Rashbaum and Joseph Goldstein | Published: 6/20/2016

Three New York City police commanders and a business consultant were arrested as part of a wide-ranging federal corruption probe that has also been examining Mayor Bill de Blasio’s campaign fundraising. The latest arrests mark an escalation of an investigation that has led to discipline for nearly a dozen police officers and forced de Blasio to answer questions about whether he engaged in inappropriate fundraising. A criminal complaint accused businessperson Jeremy Reichberg of plying Deputy Chief Michael Harrington, Deputy Inspector James Grant, and others with gifts including prostitutes, sports tickets and expensive trips. As a result, Reichberg was able to secure official favors. De Blasio has said he and his administration have acted legally in all respects. He has not been accused of wrongdoing, and the charges thus far are unrelated to his fundraising efforts.

New York – New York Lawmakers Leave Albany Without Big Ethics Reforms
Albany Times Union – David Klepper (Associated Press) | Published: 6/18/2016

New York Gov. Andrew Cuomo and legislative leaders agreed to an ethics package that aims to strip pensions from public officers convicted of a felony and add disclosure requirements for political consultants who advise elected officials. The session started in January with some bold proposals to fix the state’s porous campaign finance laws, beef up ethics enforcement, and put limits on the pay lawmakers can make from side jobs. But none passed during the six-month session. For good-government groups and officials long bewildered by Albany’s inaction, the resolution was as disappointing as it was unsurprising.

Oregon – Portland Auditor Says Revolving-Door Lobbying Rules ‘All but Unenforceable’
Portland Oregonian – Brad Schmidt | Published: 6/22/2016

A proposed ordinance in Portland would ban elected officials from lobbying the city and bureau directors from lobbying their agencies for two years after they leave office. It would impose a one-year lobbying ban on other city employees. The ordinance is a compromise. City commissioners expressed reservations about a more restrictive version of the bill that was introduced in April. City Auditor Mary Hull Caballero also wants to raise the fine for violating the city’s lobbying rules to $3,000. The new rules would require any group that spends more than $1,000 lobbying in a quarter to disclose a detailed list of each contact with city officials. Right now, that level of transparency is required only for groups that spend at least eight hours lobbying in a quarter, a provision that would continue.

Wisconsin – As the Government Accountability Board Ends, What’s the Future for Wisconsin Campaign Finance Regulation?
Capital Times – Katelyn Ferral | Published: 6/19/2016

Wisconsin’s Government Accountability Board, born in bipartisanship from a legislative scandal in 2001, was the only nonpartisan model of its kind in the country with six former judges appointed by the governor and confirmed by the Senate. It was armed with a budget unfettered by Legislative oversight to investigate campaign finance, ethics, and lobbying complaints. Its dissolution, which came with a rewrite of the state’s campaign finance rules, is a necessary reform to some but step backwards for others who question whether violations of campaign finance law will be aggressively policed.

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.

Federal:

A New Phase for Trump’s Media War
The Hill – Niall Stanage | Published: 6/15/2016

Media coverage of Donald Trump is shifting in a more negative direction as the presumptive Republican presidential nominee opens another front in his war with the Fourth Estate. The Trump campaign revoked press credentials for The Washington Post, initially objecting to a headline regarding remarks he made about President Obama and the mass shooting in Orlando. But coverage from The Post, as well as The New York Times, on Trump’s speech on the massacre included some phrases that are sure to stoke his ire once again. To Trump’s critics, that language is a sign that news media are making an appropriate and long-awaited effort to hold Trump to account. His supporters, however, will no doubt see it as the injection of liberal opinion into news stories.

After Orlando, a Political Divide on Gay Rights Still Stands
New York Times – Jeremy Peters and Lizette Alvarez | Published: 6/15/2016

The deep divide over gay rights remains one of the most contentious in American politics. And the murder of 49 people in an Orlando gay club has, in many cases, only exacerbated the anger from Democrats and supporters of gay causes, who are insisting that no amount of consoling words or reassuring Twitter posts change the fact that Republicans continue to pursue policies that would limit legal protections for gays and lesbians.  Some say identity politics have overtaken the tragedy in Orlando, with its combustible mix of issues that have long divided Americans: guns, gays, God, and immigration.

On Donald Trump, Republicans Keep Distance in Different Ways
New York Times – Jennifer Steinhauer | Published: 6/15/2016

For Republican lawmakers, there is no avoiding reporters in the Capitol, and no escaping controversy brought on by the party’s presumptive presidential nominee. Some, like the #NeverTrump crowd that includes U.S. Sen. Lindsey Graham, have it easy. It is no surprise where they stand on Donald Trump, and they consistently criticize him. But not everyone has it so simple.

Russian Government Hackers Penetrated DNC, Stole Opposition Research on Trump
Washington Post – Ellen Nakashima | Published: 6/14/2016

The Democratic National Committee’s computer systems were compromised by hackers linked to the Russian government, in one of the largest known breaches of an American political organization. A security firm hired by the Democratic Party found two known entities with ties to the Russian government had separately hacked the party’s information-technology infrastructure. It was reported that the party’s entire file of opposition research against Donald Trump had been copied. Presidential campaigns can be intelligence gold mines for foreign adversaries. There is immense interest in how future candidates would treat foreign countries, address trade, build their transition teams, and appoint to cabinet level positions.

From the States and Municipalities:

Alabama – Michael Hubbard, Alabama House Speaker, Is Convicted on 12 Felony Ethics Charges
New York Times – Alan Blinder | Published: 6/10/2016

A jury found Alabama House Speaker Mike Hubbard guilty on 12 of 23 counts of public corruption, agreeing with prosecutors that he used the influence and prestige of his political offices to benefit his companies and clients. The verdict automatically removes Hubbard from the Legislature and the speaker’s office. Prosecutors accused Hubbard of using his position as speaker and as former chairperson of the state Republican Party to try to obtain $2.3 million in work and investments. The charges included that he directed campaign work to his printing company; solicited investments and help to find employment from lobbyists and company executives; and used the power of his office to benefit his clients through legislative action or lobbying the governor’s office.

California – Former State Sen. Ron Calderon’s Guilty Plea in Corruption Case Marks Blow to Political Dynasty
Los Angeles Times – Joel Rubin and Patrick McGreevy | Published: 6/13/2016

Former California Sen. Ronald Calderon, accused of taking bribes from an undercover FBI agent posing as Hollywood filmmakers, agreed to plead guilty to mail fraud. His brother, ex-Assemblyperson Thomas Calderon, pleaded guilty to a money laundering charge in connection with the case. The Calderon brothers were members of a political dynasty going back several decades in the state before they were ensnared in the federal probe. Ronald Calderon had the undercover agent hire his daughter, make a $5,000 payment toward his son’s tuition, and give $25,000 to a nonprofit group the brothers used to pay themselves. In exchange, Calderon agreed to vote for film tax legislation and hire the undercover agent’s purported girlfriend for his staff.

Connecticut – Agency Approves Settlement That Would End Probe of Democrats’ Spending On Malloy Re-Election
Hartford Courant – Jon Lender | Published: 6/15/2016

The Connecticut Democratic Party and State Elections Enforcement Commission (SEEC) are settling a case involving Gov. Dannel Malloy’s 2014 re-election campaign. The party agreed to make a $325,000 payment to end the dispute over whether it illegally spent money from a federal account on mailers to benefit Malloy, who was participating in the state’s public campaign financing program. The federal account can accept political contributions from state contractors, unlike the party’s state fund. The SEEC will drop a pending lawsuit seeking a court order that the Democratic Party comply with an investigatory subpoena.

Hawaii – Honolulu Ethics Director Quits Over Direction Commission Is Headed
Honolulu Civil Beat – Chad Blair | Published: 6/15/2016

Honolulu Ethics Commission Executive Director Chuck Totto has resigned, effective immediately. Totto’s relationship with Mayor Kirk Caldwell’s administration was contentious from the beginning with questions about funding by lobbyists for the mayor’s inaugural luau. The rift was furthered with disagreements on the commission’s budget, as well as the validity of city council votes and Caldwell’s support of the rail project in view of contributions to their political campaigns by rail interests. Totto was placed on a one-month leave after an investigation into management procedures, and was hit with a major restriction upon his return.

Nevada – Nevada Bill Kept Legislators from Being Investigated
Las Vegas Review-Journal – Bethany Barnes | Published: 6/11/2016

The Nevada Ethics Commission is set up to police “public officers,” but legislators hold a special standing that grants them some immunity. The idea is that lawmakers need to be free to make decisions without fear of political retribution. As it stands now, politicians can say the ethics panel investigated a complaint and they were cleared, when in reality the commission was simply powerless to take action. League of Women Voters President Sondra Cosgrove said having no Ethics Commission would be better than having one that is essentially a fraud because it can rarely act. “Nevada is ‘Zombieland;’ it looks like we have lots of good laws and enforcement mechanisms, but as soon you try to actually engage with one, you get your brains eaten,” said Cosgrove.

New York – How Joseph Percoco, Cuomo’s Problem-Solver, Became a Problem
New York Times – Jesse McKinley and Vivian Yee | Published: 6/13/2016

It was all but impossible to imagine New York Gov. Andrew Cuomo without Joseph Percoco, his closest aide and the mainstay of his life in politics. But it took only a few days to end the relationship. Federal investigators subpoenaed records related to Percoco from a state ethics board. Then, the governor learned federal agents had raided Percoco’s home, looking for evidence he and his wife had improperly received thousands of dollars from companies that had done business with the state. Cuomo has repeatedly named Percoco and another former aide, Todd Howe, as the prime targets of the investigation led by Preet Bharara, the U.S. attorney for the Southern District of New York.

South Carolina – General Assembly Passes Ethics Reform for Lawmakers’ Income Disclosure, Independent Investigations
Charleston Post and Courier – Maya Prabhu | Published: 6/15/2016

The South Carolina Legislature approved two ethics reform bills after years of trying. One bill would require lawmakers and other public officials disclose sources of private income, while another would provide independent ethics investigations of ethics complaints against legislators. Under the bills, ethics complaints against legislators would be investigated by a revamped State Ethics Commission, which would determine if there is probable cause to the complaints and if so would send them back to House and Senate ethics committees to determine guilt and any penalty. Legislators and public officials currently must report sources of government income, payments from lobbyists, and some government contractors but not private sources.

Virginia – Two Years Ago, Eric Cantor Lost His House Seat. Was It Just in The Nick of Time?
Washington Post – Roxanne Roberts | Published: 6/15/2016

As vice chairperson of Wall Street investment bank Moelis and Co., Eric Cantor circles the globe advising companies on how to position themselves in the global marketplace. Two years ago, he was the rising star of the Republican Party, the presumptive heir to the speakership of the House, until he was humiliated in a primary election by a political novice. Cantor was the first sitting House majority leader in history to lose his congressional seat. Some called it one of the greatest political upsets of modern times. It was also a cautionary tale. In hindsight, that contest was not just a GOP primary election, Cantor says. It was a referendum on establishment politics, broken promises, and angry voters’ growing distrust of Washington. He was at the epicenter of a populist uprising.

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

New York: “Complaint Charges Unregistered Lobbying for Daily Fantasy Sports” by Chris Bragg for Albany Times Union

Ethics

“Common Cause Taps Former Connecticut Director as National President” by Staff for Hartford Courant

“Lawmakers Charge Park Service Chief Oversees Culture of Sexual Harassment” by Lisa Rein for Washington Post

California: “Former State Sen. Ron Calderon’s Guilty Plea in Corruption Case Marks Blow to Political Dynasty” by Joel Rubin and Patrick McGreevy for Los Angeles Times

“Opa-locka Finance Advisor Once Targeted in County Ethics Probe” by Michael Sallah and Jay Weaver for Miami Herald

New Mexico: “Judge Rules AG Can Have Ethics Records in Griego Case” by Dan Boyd for Albuquerque Journal

New York: “How Joseph Percoco, Cuomo’s Problem-Solver, Became a Problem” by Jesse McKinley and Vivian Yee for New York Times

Elections

“Trump Revokes Post Press Credentials, Calling the Paper ‘Dishonest’ and ‘Phony’” by Paul Farhi for Washington Post

“Russian Government Hackers Penetrated DNC, Stole Opposition Research on Trump” by Ellen Nakashima for Washington Post

National:

Study: Ordinary people struggle to use many state campaign finance websites
StateScoop – Alex Koma | Published: 5/31/2016

The Campaign Finance Institute released a report that examines how easily ordinary people could use state websites to find out how much money each state’s governor collected in campaign contributions in their most recent elections. Researchers found, for example, that users only managed to answer about 54 percent of questions correctly based on the information available on the websites. Fourteen states earned outright negative ratings, while 10 received middling scores. A total of 12 states got high marks from testers. Michael Malbin, the institute’s executive director, said he hopes the study shines a light on how difficult the sites are to use for “political amateurs, people who don’t use them as part of their occupations.”

Federal:

Clinton Celebrates Victory, Declaring: ‘We’ve reached a milestone’
Washington Post – Anne Gearan, Robert Costa, and John Wagner | Published: 6/8/2016

Hillary Clinton claimed the Democratic presidential nomination after decisive victories in the California, New Jersey, and New Mexico primaries, and appealed to supporters of U.S. Sen. Bernie Sanders to unite with her against Donald Trump. With the Democratic race nearing a close, Clinton savored the biggest night of journey from lawyer, wife, and first lady to senator, secretary of state, and now, the first woman to win a major party’s nomination. The only remaining way for Sanders to win the nomination is to persuade super delegates to effectively overturn the will of the voters.

Exclusive: Trump’s 3,500 lawsuits unprecedented for a presidential nominee
USA Today – Nick Penzenstadler and Susan Page | Published: 6/2/2016

A USA Today analysis of legal filings finds that Donald Trump and his businesses have been involved in at least 3,500 legal actions in federal and state courts during the past three decades. They range from skirmishes with casino patrons to million-dollar real estate suits to personal defamation lawsuits. The sheer volume of lawsuits is unprecedented for a presidential nominee. No candidate of a major party has had anything approaching the number of Trump’s courtroom entanglements. Trump’s history of legal actions provides clues about his style as a leader and manager.

From the States and Municipalities:

California – Builders Pierce California’s Environmental Shield with New Weapon: The ballot
New York Times – Ian Lovett | Published: 6/7/2016

Once heralded as a vital check on corporate influence over government, California’s ballot initiative system, which allows residents to propose laws and approve them by popular vote, has been used to sharply cut property taxes and to enact the country’s first medical marijuana law. But these days, developers are using the process for another purpose: to sidestep state environmental laws and speed major developments. Supporters of the ballot measures say they allow residents to override a broken system in which lawsuits and environmental reviews can delay projects for years. But environmentalists argue the arrangement grants special privileges to developers, even if only a relatively small fraction of residents support a project. And land-use experts say the strategy will become more common unless the state government steps in to curtail it.

California – Countywide Ethics Commission Overwhelmingly Approved
Voice of OC – Tracy Wood | Published: 6/7/2016

Voters approved a ballot measure that will establish an ethics commission in Orange County. The commission will enforce campaign finance law on countywide elected officials. The initiative also gives the ethics panel the authority to enforce the county’s gift ban, lobbyist registry, and parts of the county ethics code.

California – Ex-California Lawmaker Tom Calderon Pleads Guilty to Money Laundering
Sacramento Bee – David Siders and Alexei Koseff | Published: 6/6/2016

Former California Assemblyperson Thomas Calderon pleaded guilty to money laundering as part of a plea agreement in which he acknowledged concealing bribes that his brother, then-state Sen. Ron Calderon, accepted in exchange for supporting the expansion of tax credits for the film industry. Though his conviction carries up to 20 years in prison, prosecutors are requesting that he get no more than one year. The bribes came from an undercover FBI agent who posed as the owner of a movie studio. Thomas Calderon deposited a $30,000 bribe from the undercover agent into a bank account belong to the consulting company he founded, according to the plea agreement. He then wrote a check for $9,000 from that bank account to Ron Calderon’s daughter, the agreement says.

Florida – Bryant Miller Olive Appeals $50 Fine – and Loses
Florida Politics – Jim Rosica | Published: 6/3/2016

The Bryant Miller Olive law firm lost its appeal of a $50 fine for the late filing of one of its lobbyist compensation reports in Florida. Commissioners, though, were split on whether to waive the fine. Some wondered why the firm was fighting a one-day fine; others asked why commission staff bothered to pursue it. Foyt Ralston, a lobbyist with the firm, said it “made every attempt to submit our report.” The company appealed “partially on principle, but this is what we had to do to ask the question of how these things are handled,” Ralston said.

Florida – Hialeah Restaurant Owner Tried to Bribe Commissioner, State Says
Miami Herald – David Ovalle | Published: 6/1/2016

When the owner of Hialeah’s Rancho Okeechobee needed permission to keep the restaurant open late for a special event, he walked into the office of Miami-Dade County Commissioner Jose Diaz. “You have a friend in Rancho Okeechobee,” he wrote in a letter, according to police. And inside the envelope: $700 cash. The envelope stuffed with cash led not to political favors but to the arrest of Elezear Gadea, the restaurant owner, who has been charged with offering a bribe, authorities said. He later gave an undercover detective, posing as a commissioner’s aide, $2,000 in cash to help him, according to police.

Missouri – Four Years Later, an Ex-Politician Is Still Benefiting from His Campaign Fund
St. Louis Post-Dispatch – Kevin McDermott | Published: 6/5/2016

When Missouri House Speaker Steve Tilley resigned in 2012, he kept his $1.1 million campaign fund open. Donors gave the money to further the public agenda he represented. Instead, those funds are furthering Tilley’s lobbying and political consulting work, through a web of private firms and PACs tied to his family members and political allies. Rep. Jay Barnes described a series of newly outlawed maneuvers that are essentially a diagram of what Tilley has done since leaving office: putting campaign funds in long-term investments that do not allow immediate access to the money; moving the money into separate PACs controlled by the former officeholder; and passing the cash to other elected officials while lobbying those officials.

New York – Independent Budgeting a Little-Used Practice for City Watchdog Agencies
Gotham Gazette – Aaron Holmes | Published: 6/3/2016

During the annual budget process, New York City agencies and entities are at the mercy of the mayor and the city council, who ultimately set the budget. But unlike many, the several agencies and officials who regularly monitor or regulate the administration are put in an awkward situation, annually appealing for funding in a dynamic that can hamper their ability to carry out charter-mandated duties and, in some cases, lead to politically-motivated budget cuts.

New York – NY Gov. Cuomo Wants New Limits on Secret Campaign Funds
The Associated Press – David Klepper | Published: 6/8/2016

New York Gov. Andrew Cuomo wants to tighten restrictions on laws governing money given to candidates via so-called independent expenditure committees. Legislation announced by the governor would strengthen rules prohibiting independent groups from working with campaigns to elect specific candidates. It also would require greater disclosure of spending by independent groups. Cuomo released a legal opinion from his top counsel that seeks to clarify ambiguities in current rules prohibiting coordination. The opinion, meant to advise prosecutors or groups like the state Board of Elections, lays out several indications of improper cooperation between a candidate and an independent group. They include sharing major donors or office space, or family members or former staffers of the candidate who lead the independent organization.

Ohio – Lobbyist John Raphael’s Influence Spread Swiftly
Columbus Dispatch – Lucas Sullivan | Published: 6/8/2016

A judge sentenced former Columbus lobbyist John Raphael to 15 months in prison for extorting campaign contributions from red-light-camera vendor Redflex to help secure city contracts for the company. Raphael’s actions have resulted in more than 37 subpoenas, a federal grand jury, hundreds of court depositions, the interrogations of more than 50 Columbus and Franklin County employees, and at least two searches by FBI agents. “It became known that if a company wanted to land a contract, it had to go through John,” said a former city council aide. The city council has enacted new ethics laws this year that call for more accountability and monitoring of lobbyists.

Rhode Island – General Assembly Passes Lobbying Reform Act
Newport Buzz – Christian Winthrop | Published: 6/7/2016

Rhode Island lawmakers gave final approval to legislation that will reform the state’s lobbying law. Senate Bill 2361 and House Bill 7388 clarify the definitions of lobbyist and lobbying; provide a framework for investigations and hearings; strengthen and simplify lobbying reporting guidelines while making it easier for the general public to access these reports; and increase maximum penalties for non-compliance to more than double the current amounts. The bills await Gov. Gina Raimondo’s signature.

Wisconsin – What’s in a Name? Ask the Wisconsin Ethics Commission
Minneapolis Star Tribune – Scott Bauer (Associated Press) | Published: 6/9/2016

Members of the newly created commission to regulate ethics and campaign finance laws for Wisconsin officeholders and lobbyists continued their organizational work with the simplest of tasks: deciding on a name. The Wisconsin Ethics Commission, the name board members agreed upon, was created by the Legislature as one of two groups to replace the Government Accountability Board (GAB) starting on June 30. The agency does not yet have an administrator. Twenty-two people applied for the job, said outgoing GAB Executive Director Kevin Kennedy.

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.

On June 7, the Rhode Island General Assembly passed two bills changing the state’s lobbying laws.

Senate Bill 2361 and House Bill 7388 both repeal the current lobbying laws in Title 22 and Title 42 in the state’s statutes and enact the Rhode Island Lobbying Reform Act. Among the changes in the bills are the simplification of lobbyists’ reporting requirements, an increase in penalties for failing to comply with lobbying requirements, and the allowance for more investigative and administrative authority for enforcing the lobbying laws, including administrative subpoena power.

The bills now head to Gov. Gina Marie Raimondo, who has six days after transmittal (excluding Sunday) to sign or veto the bills or the legislation will become law without her signature. The effective date for the two bills is January 1, 2017.

Photo of the Rhode Island State Capitol by Garrett A. Wollman on Wikimedia Commons.

Q. When I talk to state officials, I’m always with my registered contract lobbyists. That means I’m exempt from registering, correct?

A. The kind of exemption you are referring to is commonly called an umbrella exception. In most instances, being with a registered lobbyist does not exempt an individual from having to register as a lobbyist.

California and Utah are two states with an umbrella exception, but there are limits to those exceptions. In Utah, an individual is not considered a lobbyist (and thus does not have to register) if he or she:

Interacts with a public official in that official’s capacity as a public official while accompanied by a registered lobbyist who is lobbying in relation to the subject of the interaction or while presenting at a legislative committee meeting at the same time the registered lobbyist is attending another legislative committee meeting; and

Does not make an expenditure for, or on behalf of, a public official in relation to the interaction or during the period of interaction.

California’s umbrella exception is the most well-known, but it was narrowed in March. Now, the umbrella exception will only apply if the individual:

Is an employee of a lobbyist employer;

Meets or speaks with a state official in the company of a registered lobbyist retained by the individual’s lobbyist employer; and

Participates as a subject matter expert regarding a legislative or administrative action at issue.

California’s exception was narrowed to prevent contract lobbyists from being able to utilize the exception and avoid registration and reporting requirements.

As you can see, there are very few umbrella exceptions allowing you to avoid registration. And even when a state has an umbrella exception, there are limits on who can take advantage of them. If you will be attempting to influence a state official, be sure to give us a call prior to your meeting to make sure lobbyist registration will not be required.

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

Federal:

Are Members of Congress Overpaid?
The Atlantic – Nora Kelly | Published: 6/2/2016

Seventy-eight percent of the American public disapproves of lawmakers’ job performances. Thus, like any other group of poorly performing American workers, Congress probably will not get a raise next year. Lawmakers already make a hefty six figures and more than three times the U.S. median household income. But although their pay might look rich at first glance, deciding what salary the members of Congress merit is complicated by the political climate, and the potential for legislators to make a whole lot more if they were to work almost anywhere else.

Can Donald Trump Win? These Battleground Regions Will Decide
New York Times – Jonathan Martin, Alexander Burns, Trip Gabriel, and Fernanda Santos | Published: 5/29/2016

In the Republican primaries, Donald Trump proved a master of nationalizing the political debate, appealing to voters across regional lines with harangues about immigration and crime that captivated an almost uniformly white primary electorate. At the outset of the general election, Trump has dominated the day-to-day news on national television and social media. In the general election, however, his fate will be determined not by his Twitter followers or a relatively homogeneous GOP electorate, but by a set of interlocking and increasingly diverse regions that hold many of the 270 electoral votes he needs to win. And in the four regions likely to decide the presidency – Florida, the upper Southeast, the Rust Belt, and the interior West – Trump faces daunting obstacles.

Clinton’s Challenge: Become a change agent in a year shaped by voter fury
Washington Post – Philip Rucker | Published: 5/31/2016

Hillary Clinton has promised that if elected, her presidency would bring better-paying jobs, renovated schools, and repaired bridges and highways. Labor laws would toughen, student debt would decline, and health care would be more accessible. But many people do not see Clinton in that light. Her advisers are grappling with how to convince swing voters that a former secretary of state, U.S. senator, and first lady who owns a home in Washington, has cultivated deep ties to Wall Street, and has played a starring role in the political scene for a quarter-century will usher in change.

‘I Can Watch It on TV’: Excuses for Republicans skipping a Donald Trump
New York Times – Jeremy Peters | Published: 6/1/2016

Prominent Republicans have announced their intention to skip the party’s national convention in Cleveland this summer, the latest sign that Donald Trump continues to struggle in his effort to unite the party behind his candidacy. The list of those who have sent regrets includes governors and U.S. senators, almost all facing tough re-election fights this year, and lifelong party devotees who have attended every convention for decades. The coolness toward Trump amounts to a remarkable rebuke. A broad range of party leaders are openly rejecting the man who will be their nominee. And the July convention, usually a moment of public catharsis for political parties after contentious primaries, is shaping up to be another reminder of the disarray and disunity that is still rocking the GOP after a bitter fight for the nomination.

From the States and Municipalities:

Alabama – Former Ethics Director Says He Advised Hubbard of Law
Montgomery Advertiser – Brian Lyman | Published: 5/31/2016

During testimony at Alabama House Speaker Mike Hubbard’s trial on corruption charges, the retired director of the state Ethics Commission said he often cautioned Hubbard about actions that would violate state law. Prosecutors called Jim Sumner to give jurors a tutorial on the law and to try to show Hubbard willfully ignored his advice. Hubbard faces 23 felony ethics charges accusing him of using his political positions to make money and solicit work, investments, and clients from people with business before the Legislature. Prosecutors say Hubbard improperly used the “mantle of his office” to benefit his businesses and clients. Hubbard has maintained the transactions were legal and permitted under the exceptions the state ethics law provides for normal business dealings and longstanding friendships.

California – In California, Varied Election Filing Practices Reveal a System Struggling to Catch Up
Los Angeles Times – Kaitlyn Landgraf and Ana Santos | Published: 5/31/2016

California accepted the first electronic filing of a campaign statement in U.S. history in 1998. Little has changed since then. More than half of the state’s counties, most of them small and rural, do not provide online access to campaign finance records, and they say they are not likely to change any time soon. Some counties say shifting online would be too expensive given tight budgets. Others have implemented electronic filing systems, but have not made them mandatory for candidates and committees. That means it is more difficult to determine whom local donors are, how much money they raised, and for which campaigns. Counties operate independently because there is no state law requiring online filing.

California – Quizzing the Candidates Leaves a Secret Paper Trail
CALmatters – Laurel Rosenhall | Published: 5/25/2016

The document from the Service Employees International Union reads like a contract, asking candidates seeking a seat in the California Legislature to pledge support for workers organizing unions. It lists priority issues and asks if the candidate will be a “supporter,” “champion,” or “partner” as the union pursues its agenda in Sacramento. Such questionnaires are a staple of electoral politics. The surveys can help sift a field of contestants as decisions are made about how to spend campaign money. By locking potential legislators into a position before they are even elected, questionnaires may also influence policy-making in a way that excludes the public and raises ethical questions. Out of view from voters, they can create private covenants between soon-to-be public officials and the groups that will lobby them. “It’s the smoke-filled backroom of politics,” said Sen. Steve Glazer.

Colorado – Councilman Says He Will Start Drafting Changes to Denver Code of Ethics
Denver Post – Jon Murray | Published: 5/29/2016

City Councilperson Kevin Flynn said he will draft a bill to reform Denver’s ethics law. Flynn said he likely would include a proposed gift limit. It would set a maximum annual value of $250 per donor or business on gifts of meals and event tickets to officials or employees who are in a position to take action that benefits the donor. It is still unclear how strong the council’s appetite for stronger ethics rules will be. Previous councils have been resistant, but Flynn says his sense is the current council is more likely to support most of the changes under discussion.

Florida – Prison Inspectors Detail Alleged Interference in Their Investigations
Miami Herald – Mary Ellen Klas | Published: 6/1/2016

Two investigators filed a lawsuit accusing the Florida Department of Corrections of retaliating against them for alleging cover-ups, inmate abuse, and political interference on behalf of a company whose lead lobbyist became Gov. Rick Scott’s general counsel. Doug Glisson and John Ulm allege their bosses systematically tried to discredit them and set them up for demotions by concocting charges, violating agency procedures, and even forging signatures. They claim the governor’s office has wielded influence over agency investigations and point to both the governor’s former top lawyer, Pete Antonacci, and his chief inspector general, Melinda Miguel, as being involved.

Kentucky – Governor Gets 237 Derby tickets. Who Uses Them?
Louisville Courier-Journal – Tom Loftus | Published: 5/27/2016

Lobbyists, campaign donors, and state officials continued to buy prime tickets to the Kentucky Derby and Kentucky Oaks this year from the batch that Churchill Downs sets aside for sale to the governor’s group. For years, governors and Churchill Downs say the sale of so many tickets to the governor’s group is intended as an economic development tool for the state. And the list of those who got the tickets this year from the governor’s allocation shows 62 of the Millionaires’ Row seats went to guests of the state Economic Development and Tourism cabinets. But lobbying firms McCarthy Strategic Solutions and McBrayer, McGinnis, Leslie, and Kirkland each bought batches of tickets through the governor’s allotment.

Montana – Group of Republicans Call for Special Session on Campaign Finance
Helena Independent Record – Holly Michels | Published: 5/31/2016

Ten Montana lawmakers filed paperwork to ask for a special session of the Legislature to fix what the group calls “defects” in state law governing campaign contributions and close a loophole that allows for cash from PACs to flow to candidates without limit. Contribution limits put in place by Commissioner of Political Practices Jonathan Motl recently are disproportionately low to that of surrounding states, the Republican lawmakers argue in the filing. The secretary of state will send legislators a ballot to vote on if they favor a special session. If a majority of the reply affirmatively to the poll, the secretary of state will let each lawmaker know the time and day the special session will convene.

New York – De Blasio Doled Out City Appointments from Shady Spreadsheet of Big Campaign Donors
New York Daily News – Jennifer Fermino and Greg Smith | Published: 5/31/2016

Campaign donors, lobbyists doubling as bundlers, lawyers, and real estate developers were listed on a spreadsheet of 97 names from which top officials in the administration of New York City Mayor Bill de Blasio were said to have selected key appointments during his first months in office. Ultimately, at least 43 of the 97 individuals appearing on the spreadsheet accepted at least one appointment. “Confidential notes” on the list reveal the prospective candidate’s business ties, but do not highlight actual qualifications for specific appointments. They do, however, reference support for the mayor, sometimes in financial terms.

Oregon – Lobbying, Campaign Contributions Give Special Interests Clout
Hillsboro Tribune – Hillary Borrud | Published: 5/30/2016

The combination of spending on lobbying and campaign contributions is common practice for many companies and interest groups in Oregon, which has no limits on the size of political donations and expenditures. But it is difficult for the public to track the connection because the state uses separate systems to record campaign and lobbying spending. The state also does not require lobbyists to disclose if they play a role in raising campaign money. Dan Meek, co-chairperson of the Independent Party of Oregon, said he is more concerned about the lack of campaign contribution limits than lobbyist spending. “Lobbying expenses and reporting is overshadowed by campaign contributions,” Meek said. “I also think lobbyists are only as effective as the campaign contributions they can deliver.”

Pennsylvania – Investigation Puts Scrutiny on Lobbyists, Political Ties
Pittsburgh Tribune-Review – Brad Bumsted and Mike Wereschagin | Published: 5/28/2016

Approximately 900 lobbyists spent more than $500 million last year to influence lawmakers in the Pennsylvania General Assembly. Those same lawmakers pay some lobbyists, many of them their former aides, to run their election campaigns, meaning each relies on the other for millions of dollars every election cycle. Pennsylvania’s lobbying industry is under increased scrutiny as a result of a federal investigation; the probe resulted in the guilty plea of lobbyist John Estey to wire fraud. It occurs as those seeking to reform the industry push for full spending disclosure, a gift ban, and an end to lobbyists running legislative campaigns.

Texas – Texas Ethics Commission Tightens Rules on Trips Paid by Lobbyists
Austin American-Statesman – Sean Collins Walsh | Published: 6/1/2016

The Texas Ethics Commission voted to make it more difficult for lobbyists and lawmakers to take advantage of an exemption in state law that allows special interests to fund educational trips. Under the new rule, lobbyists can only pay for trips that are necessary for the official to obtain information relevant to state business; a trip must be the only way the official can obtain the information; and the outing must not be for a “merely ceremonial event or pleasure trip.” Commissioner Paul Hobby had said lobbyists asked for the increased regulation because they were being asked to pay for so many trips.

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

Illinois: “Rauner Board Asked Builders to Lobby Lawmakers” by The Associated Press for Crain’s Chicago Business

Nevada: “Council Votes to Delay Passing Lobbyist Registration Ordinance” by Anjeanette Damon for Reno Gazette-Journal

Oregon: “As Spending on Lobbying Increases, Transparency Remains Murky” by Hillary Borrud for East Oregonian

Campaign Finance

Kansas: “Amid Criticism, Kansas Launches New Campaign Finance Website” by Peter Hancock for Lawrence Journal World

Montana: “Judge Issues Stay Reinstating Campaign Contribution Limits from Political Parties” by Holly Michels for Helena Independent Record

Ethics

Rhode Island: “Ethics Commission Considers Election-Season Blackout” by Matt O’Brien (Associated Press) for WJAR

Elections

“Do Sanders Supporters Favor His Policies?” by Christopher Achen and Larry Bartels for New York Times

“Obama Can’t Endorse During the Democratic Primary, So He’s Just Pointing Out How Hard the Job Is Instead” by Christi Parsons and Michael Memoli for Los Angeles Times

“Trump Reaches the Magic Number to Clinch Nomination” by The Associated Press for Yahoo!News

National:

Getting a Photo ID So You Can Vote Is Easy. Unless You’re Poor, Black, Latino or Elderly.
Washington Post – Suzi Horwitz | Published: 5/23/2016

In November, 17 states will have voting restrictions in place for the first time in a presidential election. Supporters say everyone should easily be able to get a photo ID and the requirement is needed to combat voter fraud. But many election experts say the process for obtaining a photo ID can be far more difficult than it looks for hundreds of thousands of people across the country who do not have the required photo identification cards. Those most likely to be affected are elderly citizens, African Americans, Hispanics, and low-income residents.

Federal:

A Growing Concern in Cleveland: Chaos off the convention floor
Washington Post – Ed O’Keefe | Published: 5/25/2016

Fears of chaos inside the Republican National Convention have subsided as Donald Trump has tightened his grip on the party’s presidential nomination. But outside the arena, an assortment of planned demonstrations and marches is raising safety concerns about what happens when protesters, police, and convention participants converge on the streets of Cleveland. Many are increasingly worried the city is ill-prepared to deal with the tens of thousands of people that are expected to descend on Cleveland in July.

As Donald Trump Pushes Conspiracy Theories, Right-Wing Media Gets Its Wish
New York Times – Jonathan Martin | Published: 5/25/2016

Ever since talk radio, cable news, and the Internet emerged as potent political forces on the right, Republicans have used those media to attack their opponents. Political operatives would secretly place damaging information with friendly outlets like Fox News and with radio hosts like Rush Limbaugh, and then they would work to get the same information absorbed into the mainstream media. Candidates themselves would avoid being seen slinging mud. Yet by personally broaching topics like Bill Clinton’s marital indiscretions and the conspiracy theories surrounding the suicide of Vincent Foster, a Clinton White House aide, Donald Trump is again defying the norms of presidential politics and fashioning his own style. Trump has begun a real-life political science experiment: what happens when a major party’s nominee is more provocateur than politician?

Despite Recommendations, FEC Won’t Pursue Charges that Murray Energy Coerced Campaign Donations from Employees
Cleveland Plain Dealer – Sabrina Eaton | Published: 5/23/2016

Despite the fact that FEC staff found “reason to believe” Robert Murray and his company violated federal law by coercing employees to donate to and support Republican candidates, the agency will not pursue charges. During the 2012 election, Murray Energy workers said they were required to attend a rally for Mitt Romney. Other employees later said they were pushed to donate to Romney. An FEC report states “the record suggests Murray solicited employees for contributions to individual candidates in a manner that further elevated the pressure to contribute, including the implicit threat that potential job-related reprisals may follow for not doing so.” The FEC’s three Democratic members released a statement expressing fear the precedent would let corporations “feel they may ride roughshod over the rights of their employees.”

Hillary Clinton Is Criticized for Private Emails in State Dept. Review
New York Times – Steven Lee Myers and Eric Lichtblau | Published: 5/25/2016

The State Department’s inspector general criticized Hillary Clinton’s exclusive use of a private email server while she was secretary of state, saying she had not sought permission to use it and would not have received approval if she had. The report sent to members of Congress undermined some of Clinton’s previous statements defending her use of the server. The report, as well as an FBI investigation and other legal challenges seeking information about her emails, is certain to keep alive a controversy that has shadowed Clinton’s campaign for president.

Lawmakers’ Dues to Party: ‘Extortion’ or team effort?
USA Today – Deirdre Shesgreen and Christopher Schnaars | Published: 5/25/2016

At the start of each two-year election cycle, the Democratic and Republican campaign committees set up elaborate contribution programs, in which the U.S. House leaders, committee chairpersons, veteran lawmakers, and even relative newcomers are given fundraising goals. Lawmakers get credit for paying their so-called dues when a donor they have contacted gives to the campaign committees, or when they transfer money from their own accounts to the committees. Those who make or exceed their expected dues are considered “team players,” a label that lifts their chances of landing plum committee assignments. Senators do the same thing, although the quotas appear to be more loosely enforced. “It is clear that political party fundraising has been moved directly into Congress, at levels never imagined by the Founders,” said U.S. Rep. Marcy Kaptur.

NFL Tried to Influence ‘Unrestricted’ Research Gift, Congressional Report Says
Washington Post – Rick Maese | Published: 5/23/2016

When the National Football League (NFL) agreed in 2012 to donate tens of millions of dollars to concussion research overseen by the National Institutes of Health, it was widely seen as a positive turning point in football’s long history of playing down the long-term effects of brain injuries on players. At the time, the league said it would have no influence over how the money was used. But the NFL and its head, neck, and spine committee worked to improperly influence the government research, trying to steer the study toward a doctor with ties to the league, according to a congressional committee.

From the States and Municipalities:

Alabama – One-Time Rising Star Hubbard to Stand Trial on Ethics Charges
AL.com – Mike Cason | Published: 5/22/2016

Alabama House Speaker Mike Hubbard is on trial on charges he used his political position to make money and obtain financial favors from lobbyists and company executives with business before the Legislature. Hubbard faces 23 felony ethics charges accusing him of steering Republican campaign work to his media companies and using his office to obtain employment, investments, and benefits for his companies. Prosecutors have painted him as a politician consumed by greed as he climbed to the top of the state’s political hierarchy and desperate to obtain work when being laid off by his primary employer, Auburn University’s IMG Sports Network.

Florida – Facing Bribery Charges, Opa-locka Commissioner Rams SUV into Tree, Killing Himself
Miami Herald – Charles Rabin, Jay Weaver, David Ovalle, and Michael Sallah | Published: 5/24/2016

Days before Opa-locka Commissioner Terence Pinder was ordered to turn himself over to prosecutors on corruption charges, he agonized to a friend over the shame of his imminent arrest. He fretted over the ordeal of fighting bribery charges for a second time in his political career, and wondered how he would ever be able to pay the legal costs. Hours later, he revved up the engine of his city-leased Chevy Tahoe, sped across several hundred yards of a grassy field, and rammed into a towering banyan tree. The impact killed him instantly. Pinder’s suicide represents another crisis for a city on the verge of a financial takeover by the state over massive debts and a corruption scandal that has led to a sweeping FBI investigation into its most powerful leaders.

Hawaii – Hawaii Lawmakers Again Balk at Ethics, Lobbying Reform
Honolulu Civil Beat – Nathan Eagle | Published: 5/23/2016

The Hawaii Ethics Commission tracked more than 16 bills related to ethics and lobbying this past legislative session, which ended May 5. Each one died, many without a public hearing. “I think it sends a bad message to the people about the Legislature’s commitment to open and responsible government when nearly all bills related to ethics and transparency just die a non-transparent death at the end,” said Rep. Matt LoPresti, who introduced a measure to restrict lawmakers’ use of their official position for personal benefit.

Missouri – Impact of Missouri’s ‘Revolving Door’ Lobbyist Law Questioned
Kansas City Star – Jason Hancock | Published: 5/23/2016

Under a new law in Missouri, legislators must wait six months after the end of their term before they can return to the Capitol to lobby their former colleagues. That would delay a lawmaker’s lobbying career until after the next legislative session. Bu opponents of the legislation said it was just window dressing. After a year marked by scandal, including the resignations of two lawmakers over inappropriate conduct with interns, the reform that ultimately was accomplished will do little to change the culture in Jefferson City, said Sen. Jason Holsman. “We concoct these solutions that don’t do anything but make us feel good, and someone can write a story saying we’ve addressed the problem,” Holsman said.

Montana – Term Limits Have Weakened Legislature, Some Observers Say
Helena Independent Record – Jayme Fraser | Published: 5/23/2016

Term limits have weakened Montana’s Legislature, shifting power to governors and lobbyists as well as contributing to divides within parties and a decline in bipartisan collaboration, many political observers agree. Under term limits, the Legislature lost the encyclopedic knowledge of people who worked sometimes decades on environmental regulation, taxation, or other complex topics, said Bob Brown, who served 30 years in the Legislature before being elected secretary of state. He said the lost veterans frequently offered guidance to legislators from any party.

Pennsylvania – Pa. Officials, Lobbyists Split on How to Vet Business Propositions
Pittsburgh Tribune-Review – Brad Bumsted | Published: 5/22/2016

FBI agents and operatives for decades have gone undercover as developers, racetrack lobbyists, and Arab sheiks to snare dozens of elected officials and lobbyists in corrupt transactions. Pennsylvania has been no exception, but some state officials and legal scholars question whether offering bribes to legislators is an effective way of fighting public corruption and are divided over how lawmakers should vet the validity of business propositions. “How would you know a company is flimsy?” asked Stephen Miskin, spokesperson for House Republicans. “Are we at the point where lobbyists have to hire private investigators to do background checks?”

Rhode Island – R.I. House Unanimously Approves Lobbying Bill with Stricter Penalties
Providence Journal – Jennifer Bogdon | Published: 5/24/2016

The Rhode Island House unanimously approved changes to the state’s lobbying law. The bill clarifies the definition of lobbying and strengthens penalties for those who fail to register, allowing for fines of up to $5,000 and a revocation of registration for up to three years. It also requires monthly reporting from January through June and quarterly reporting from July through December, among other reforms. An identical version of the legislation is scheduled for a full vote of the Senate.

Virginia – Inquiry Highlights Terry McAuliffe’s Ties to Chinese Company
New York Times – Nicholas Confessore and Stephanie Saul | Published: 5/24/2016

Virginia Gov. Terry McAuliffe is the subject of an ongoing investigation by the FBI and prosecutors from the Justice Department’s public integrity unit, officials briefed on the probe say. Investigators are examining the relationship between the Dandong Port Group’s wealthy and connected chairperson, Wang Wenliang, and the governor. A federal law enforcement official said the inquiry included $120,000 in contributions that a New Jersey construction firm controlled by Wang made to McAuliffe’s 2013 campaign and inaugural committee. The investigation also encompasses McAuliffe’s role as a board member of the Clinton Foundation, to which another company linked to Wang pledged a $2 million contribution in 2013.

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