Campaign Finance

California: Amid FBI Probe of LA City Hall, Council Committee Looks at Developer Donation Ban by Craig Clough for Los Angeles Daily News

Missouri: Appeals Court Upholds Joyce Ruling – Corporations Can Create PACs, but Not Donate Directly to Them by Bob Watson for Jefferson City News Tribune

New Mexico: New Mexico Legislators Took in $16,000 Before and During Session Due to Loophole by Andrew Oxford for Santa Fe New Mexican

Ethics

Kentucky: A Key Player in Deciding the Value of Matt Bevin’s Home Was Appointed by … Bevin by Tom Loftus for Louisville Courier-Journal

New Hampshire: In Votes at N.H. State House, Lawmakers’ Personal and Public Interests Often Overlap by Casey McDermott for New Hampshire Public Radio

Lobbying

National: Scant Staffing Means Few Monitoring Whether Lobbyists Obey Law by Megan Wilson for Bloomberg Government

Alabama: Ward: Bill allowing lobbyist gifts to lobbyists ‘dead’ in his committee by Brian Lyman for Montgomery Advertiser

Colorado: House Gives Nod to Lobbyist Disclosure Bill by Charles Ashby for Grand Junction Daily Sentinel

Mississippi: Other States Ban Gifts to Lawmakers. Why Doesn’t Mississippi? By Luke Ramseth and Geoff Pender for Jackson Clarion-Ledger

Tennessee: Nashville Government Lobbyists Also Support Pro-Voucher Group, Councilman Calls It ‘Ridiculous’ by Adam Tamburin for The Tennessean

Federal:

Barr’s Declaration on Trump Puts Justice Dept. Back in Political Crucible
MSN – Charlie Savage, Mark Mazzetti, and Katie Benner (New York Times) | Published: 3/25/2019

Attorney General William Barr’s decision to declare that evidence fell short of proving President Trump illegally obstructed the Russia inquiry was an extraordinary outcome to a narrative that spanned nearly two years. Robert Mueller was appointed as special counsel to remove the threat of political interference from an investigation involving the president, but he reached no conclusion on the key question of whether Trump committed an obstruction-of-justice offense. Barr stepped in to make the determination, bringing the specter of politics back into the case. Senior Justice Department officials defended his decision as prudent and within his purview, but it reignited a debate about the role of American law enforcement in politically charged federal investigations.

‘No PAC Money’ Pledges Leave Corporations in a Partisan Bind
Roll Call – Kate Ackley | Published: 3/21/2019

It is not just the number of members of Congress pledging not to accept money from PACs for corporations and trade groups (more than 50 so far) that is a problem, but their party affiliation – almost entirely Democratic. If the trend spreads into the 2020 campaign cycle, it could put companies and associations in a bind. Many of the top PACs connected to businesses and trade associations maintain roughly balanced giving ratios and some of them have enshrined such practices. “Most PACs pride themselves on being bipartisan and supporting candidates who are understanding of their issues, so they can engage in a policy conversation. There’s a real fear of just losing that balanced approach,” said Kristin Brackemyre of the Public Affairs Council.

From the States and Municipalities:

California: A State Lawmaker Borrowed Nearly a Half-Million Dollars to Buy a Home. You Might Have Voted for Her Lender.
CALmatters – Matt Levin | Published: 3/26/2019

To buy a house, a state legislator received a $430,000 personal loan from a former member of Congress from Orange County, an arrangement that some legal experts labeled unusual, but that both politicians said was not improper. State Assemblyperson Sharon Quirk-Silva borrowed the sum from former U.S. Rep. Loretta Sanchez, an unsuccessful 2016 U.S. Senate candidate, in the fall of 2017. Quirk-Silva and her husband repaid Sanchez with interest. While California law bans state and local elected officials from borrowing money from each other, nothing appears to prohibit the arrangement Quirk-Silva struck with Sanchez, who did not hold elected office at the time. In late 2018, Sanchez would announce her candidacy for a seat on the Orange County Board of Supervisors, going on to lose.

Colorado: Lawmakers Take Aim at Disclosure Loopholes in Colorado Lobbying Laws
Colorado Sun – Sandra Fish | Published: 3/25/2019

Colorado lawmakers have introduced a measure to eliminate loopholes in lobbying laws and require more disclosure to the public, part of an effort to address long-standing concerns about transparency. House Bill 1248 would require more frequent reporting by lobbyists what bills they were hired to follow, and the position taken by their clients. Lobbyists would need to file any changes in their positions on legislation within 48 hours during the session. Now, those updates are required only once a month. The legislation also aims to close loopholes that some lobbyists appear to use to avoid reporting income from clients.

Connecticut: Jon Lender: Lobbyists pay $13,000 in fines connected to tech schools controversy
Hartford Courant – Jon Lender | Published: 3/22/2019

The Office of State Ethics collected $13,000 in fines from the lobbying and consulting firm Kozak & Salina and one of its owners. The firm had a contract with the Connecticut Technical High School System (CTHSS) from 2014 to 2016 to provide “external relations and strategic consulting services,” and a similar contract for 2015 with the lighting fixture company Penn Globe. Kozak & Salina relayed communications between Penn Globe and CTHSS and charged both for the same services. So, when the lobbying firm submitted invoices to the state to obtain payment, it was getting paid twice, said Carol Carson, executive director of the ethics office. In addition to a $10,000 fine against his firm, David Kozak paid $3,000 for failing to file required registration and disclosure statements about his work for Penn Globe.

District of Columbia: As D.C. Leaders Tout Reforms, Latest Ethics Scandal Evokes City’s History of Corruption
Washington Post – Paul Schwartzman | Published: 3/23/2019

District of Columbia Councilperson Jack Evans admitted he violated the council’s code of conduct when he repeatedly used his government email account to offer potential clients the benefit of his political connections and the influence he amassed as a lawmaker and chairperson of the Washington Metropolitan Area Transit Authority. Civic groups chided the council as being too lenient when it reprimanded Evans rather than strip him of powerful committee posts. Reform activist Bryan Weaver said Evans’ actions, and the council’s response, evoke the worst aspects of the city’s history of official misconduct, one that has triggered periodic crises engulfing mayors, council members, government appointees, and employees.

Florida: ‘As American as Apple Pie’: How Miami commissioner’s aunt became a high-priced lobbyist
Miami Herald – David Smiley and Joey Flechas | Published: 3/26/2019

Some companies have chosen not to hire Barbara Hardemon as a lobbyist due to concerns about the perception of undue influence as she is the aunt of Miami City Commissioner Keon Hardemon. But in the years since his 2013 election, the commissioner’s aunt has emerged as a closer for some of Miami’s biggest businesses. Barbara Hardemon’s lobbying shop is allowed under state and local laws, which prohibit elected officials and their immediate family from profiting personally off the contracts they oversee but say nothing about their extended family. Her lucrative rise from occasional City Hall lobbyist to 11th-hour power broker has blurred the lines between negotiations and nepotism.

Florida: Ethics Board Aims to Put Teeth in Code, Seeks Greater Oversight of Tallahassee City Hall
Tallahassee Democrat – Jeff Burlew | Published: 3/23/2019

The Tallahassee Independent Ethics Board is finalizing proposals that could expand its oversight of City Hall and strengthen an ethics code that has long been seen as weak and toothless. The board currently has jurisdiction over only nine people. But proposed changes would extend its jurisdiction to cover all employees who work in procurement or are required by state law to file financial disclosures. The proposals include giving the board the power to issue subpoenas and take sworn testimony, a ban on all gifts no matter their value, and higher fines for lobbyists who try to influence city officials without registering and disclosing their clients.

Iowa: Iowa Treasurers End Scholarships Amid Ethics Law Inquiries
AP News – Ryan Foley | Published: 3/27/2019

County treasurers in Iowa canceled a scholarship program that benefited their relatives and employees amid criticism the vendor-funded awards were illegal gifts under state ethics law. The program consisted of four, $500 scholarships that were awarded each year to the college-bound children and grandchildren of county treasurers and their staffs. The money came from two companies that do extensive business with treasurers: GovTech Services, which runs the website that 88 counties use to collect property and motor vehicle taxes, and SRI Inc., which operates tax auctions for dozens of counties. Since the program’s inception, critics have worried the scholarships violated the gift law, which bars public employees and their immediate relatives from accepting money from contractors.

Maryland: Maryland House of Delegates Votes Unanimously to Reprimand Jalisi Over ‘Abusive’ Treatment of His Staff
Baltimore Sun – Luke Broadwater | Published: 3/27/2019

The Maryland House voted unanimously to publicly reprimand Del. Jay Jalisi for “an ongoing pattern of bullying and abusive workplace behavior.” The delegates voted after receiving a report outlining the investigation from the Joint Committee on Legislative Ethics that alleged Jalisi forced his staff to work overtime without pay, bullied others, got kicked out of a hotel, and made a staffer stand in the delegate’s office and repeat: “I am incompetent. I am incompetent.” This is not the first time Jalisi’s actions have been scrutinized. In 2015, a Baltimore County judge issued a protective order barring Jalisi from contact with his then-teenage daughter.

Massachusetts: House Proposal for Caucus Funding Left Out of Budget Bill – but Caucuses May Still Fundraise
MassLive.com – Shira Schoenberg | Published: 3/25/2019

A controversial Massachusetts House proposal to let caucuses raise private money did not make it into the final version of a budget bill. But House leaders say that under their internal rules, caucuses will still be able to raise private money as long as they comply with ethics rules, which bar lobbyists from giving and require any gift of over $50 to be approved by House counsel to avoid conflicts-of-interest. When the House passed its rules in January, members approved a rule that would let caucuses raise money from public or private sources. But some advocates for open government worried this could create a legislative “slush fund” where special interests with business before the Legislature could donate to lawmakers with no transparency.

New Jersey: Dark Money Disclosure Bill Advanced to Gov. Phil Murphy’s Desk
Burlington County Times – David Levinsky | Published: 3/26/2019

Legislation to require so-called dark money groups operating in New Jersey to reveal their donors was sent to Gov. Phil Murphy. The bill has undergone several changes after being approved by the Senate, but it would still mandate the disclosure of donors who give more than $10,000 to nonprofit 501(c)4 groups that are not currently subject to disclosure requirements if they engage in political activities, lobbying, or campaigning. It would also mandate the disclosure of expenses of more than $3,000 and would also boost contribution limits to state and county political committees. Those groups are already subject to strict reporting requirements but have been usurped by “dark-money” groups in recent years.

Pennsylvania: GOP Legislator Prays to Jesus for Forgiveness Before State’s First Muslim Woman Swears In
MSN – Reis Thebault (Washington Post) | Published: 3/26/2019

Movita Johnson-Harrell brought 55 guests to her swearing in as the Pennsylvania Legislature’s first Muslim woman. Thirty-two of them were Muslim. She later for the General Assembly to censure State Rep. Stephanie Borowicz, who delivered the opening prayer to begin the legislative session day. By the time she said “Amen,” Borowicz had invoked Jesus 13 times. She mentioned “Lord” and “God” another six times each and referenced “The Great I Am” and “the one who’s coming back again, the one who came, died, and rose again on the third day.” As the prayer reached a crescendo, at least one member shouted objections. Afterward, the protests only grew louder.

West Virginia: Governor Signs Bills Raising Campaign Contribution Limits, Cutting Coal Tax
Beckley Register-Herald – Erin Beck | Published: 3/27/2019

West Virginia Gov. Jim Justice signed into law a bill that increases the limits on campaign contributions by individuals. Senate Bill 622 increases the limits to $2,800 for candidates, $5,000 for PACs, and up to $10,000 per year for party committees. Current limits for each category are set at $1,000. Julie Archer of the West Virginia Citizen Action Group said bill does nothing about “dark money.” She said Democrats attempted to amend the bill at least twice to require disclosures by donors that “funnel” money through groups.

Wisconsin: Judge Bocks GOP Lame-Duck Laws Limiting Tony Evers’ Powers; Evers Seeks to Remove Wisconsin from Obamacare Challenge
madison.com – Mark Sommerhauser | Published: 3/21/2019

A judge blocked several actions by Wisconsin’s Republican-controlled Legislature to limit the power of its incoming governor, Democrat Tony Evers, and preserve policies implemented by his predecessor, Scott Walker. The Legislature acted in what is known as an “extraordinary session,” called with little notice. It lasted two days and one night and sparked heated protests. The three bills enacted during the sessions were extraordinary in breadth. One of them gave the Legislature powers usually and exclusively reserved for the attorney general, such as approving legal actions by the state. At the time of the session, Assembly Speaker Robin Vos stated its purpose plainly: “We are going to have a very liberal governor who is going to enact policies that are in direct contrast to what many of us believe in,” Vos said.

Campaign Finance

West Virginia: “Lawmakers Vote to Raise Their Campaign Contribution Limits” by Erin Beck for Beckley Register-Herald

Ethics

National: “After Week of Infighting, Democrats Wonder Where to Draw Line on Speech” by Glenn Thrush and Sheryl Gay Stolberg (New York Times) for MSN

Kansas: “White Linen Restaurant Bans Lawmakers, Lobbyists After Altercation” by Sherman Smith for Topeka Capital-Journal

New York: “State Legislature Pushing to Revamp Embattled Ethics Board” by Michael Gormely for Newsweek

Washington D.C.: “D.C. Council, Bowser Administration Receive Federal Subpoenas in Jack Evans Ethics Probe” by Peter Jamison, Steve Thompson, and Fenit Nirappil for Washington Post

Lobbying

National: “How Lobbying Has Changed in Donald Trump’s Washington” by Luke Mullins for Washingtonian Magazine

Nevada: “RJ Investigation Finds Violations, No Enforcement of County Lobbying Disclosures” by Michael Scott Davidson for Las Vegas Review-Journal

New Mexico: “Lobbyists Weigh in on Disclosure, Ban on Spending Proposals” by Marjorie Childress for New Mexico In Depth

Federal:

Justice Department Taps Mueller Prosecutor to Enforce Foreign Lobbying Disclosure
Reuters – Karen Freifeld and Suzanne Barlyn | Published: 3/6/2019

Assistant U.S. Attorney Brandon Van Grack was chosen to lead a team at the Justice Department that will make sure the Foreign Agent Registration Act (FARA), which requires disclosure of lobbying on behalf of foreign interests, is more aggressively enforced. One focal point may be Russia, which U.S. intelligence agencies say waged a disinformation campaign to sway the 2016 presidential election for Donald Trump. Assistant Attorney General John Demers also warned that law firms should take FARA registration seriously, citing the example of Skadden, Arps, Slate, Meagher & Flom, which agreed to pay $4.6 million and admitted it should have registered for a report aimed at discrediting a former Ukrainian prime minister.

From the States and Municipalities:

Connecticut: Election Officials: State contractor ban on political donations applies to marijuana producers, but not dispensaries
Hartford Courant – Neil Vigdor | Published: 3/7/2019

The State Elections Enforcement Commission ruled that a prohibition on campaign donations from state contractors extends to marijuana producers – but not dispensaries – because the value of licensing agreements they have with the state exceed $50,000. Medical marijuana has been legal in Connecticut since 2012. In anticipation of the legislative debate over recreational marijuana, the industry asked for guidance from last year about whether political contributions to legislators and statewide office holders comply with Connecticut’s 2005 clean elections law. A ban on state contractor contributions is a hallmark of the program.

District of Columbia: D.C. Council Member Jack Evans’ Use of Government Office for Personal Gain Inappropriate, Chair Says
Washington Post – Steve Thompson and Peter Jamison | Published: 3/4/2019

District of Columbia Council Chairperson Phil Mendelson said council member Jack Evans acted inappropriately when he emailed business proposals to potential employers and offered them his influence and connections as an elected official. Evans faces growing scrutiny after The Washington Post reported he sent solicitations on his government email to law firms that lobby city government, offering his contacts and sway as the council’s longest serving lawmaker and as chair of the Washington Metropolitan Area Transit Authority. The authority’s board of directors directed its ethics officer to investigate Evans. The Post reported a federal grand jury has also been investigating Evans and issued a subpoena to officials for documents related to legislation that Evans promoted in 2016 that would have benefited a digital sign company.

Kentucky: Kentucky Secretary of State Staff Searched Voting Records for Investigators and Rivals, Records Show
ProPublica – Daniel Desrochers (Lexington Herald Leader) and Jessica Huseman | Published: 3/6/2019

Kentucky officials released records that show employees in the secretary of state’s office used the voter registration system to look up political rivals, state investigators, and a range of political operatives. It is not clear in many instances why Secretary of State Alison Lundergan Grimes’ office was looking up people and their personal information such as political affiliation, and some Social Security numbers but it has led critics to conclude her office abused its access to the system to gain information about her political opponents and those involved in multiple investigations of her conduct while in office. Grimes had maintained her office had done no inappropriate searches.

Louisiana: Entergy Fined $5M, Can Move Forward with New Power Plant
Louisiana Weekly – Michael Issac Stein (The Lens) | Published: 3/4/2019

The New Orleans City Council approved a new Entergy power plant in city limits while imposing a $5 million fine against the company for using paid actors to influence its decision during the approval process. The council concluded Entergy “knew or should have known” that one if its subcontractors was paying people to fill seats and speak in favor of the project at public hearings. Entergy agreeing to the fine was contingent on the council not revoking its prior approval of the plant. Critics of the vote noted most council members have either worked for Entergy or received campaign donations from their PAC. Councilperson Cyndi Nguyen’s non-profit received at least $27,625 from Entergy. Councilperson Jay Banks revealed he once worked for the company as a government relations consultant.

Maryland: Maryland Delegate Says She Won’t Resign after House Censures Her for ‘Racist and Hateful Slur’
MSN – Luke Broadwater and Pamela Wood (Baltimore Sun) | Published: 2/28/2019

The House of Delegates censured Del. Mary Ann Lisanti for her use of a racial slur, which members said, “brought dishonor to the entire General Assembly of Maryland.” After the vote, Lisanti said she would not resign, despite calls for her to do so. She also said she did not believe she had used an offensive term to describe African-Americans, although she acknowledged earlier in the week that she had done so. Lisanti came under fire after it was reported she used the racial slur during an after-hours gathering in January at an Annapolis bar. Lisanti told a fellow lawmaker that when he helped a candidate in Prince George’s County, he was knocking on doors in a “n—– district,” according to the report.

Nevada: Nevada Senate Majority Leader Kelvin Atkinson Resigns
Las Vegas Review-Journal – Colton Lochhead and Bill Dentzer | Published: 3/5/2019

Nevada Senate Majority Leader Kelvin Atkinson resigned after admitting to using campaign funds for personal use and said he will plead guilty to federal charges. Sen. Nicole Cannizzaro was elected by Senate Democrats as the new leader of the majority. Cannizzaro becomes the first woman to serve as Senate majority leader in the state’s history. Details of the investigation, including how much money was misappropriated and what exactly Atkinson used the money for, remain unclear. Atkinson’s resignation marks the first time a lawmaker has left mid-session since 2013. But it is far from the first time a state lawmaker has recently found themselves on the wrong side of campaign finance laws.

New Hampshire: GOP Lawmakers in N.H. Wore Pearls While Gun Violence Victims Testified. Activists Were Outraged.
Boston Globe – Reis Thebault (Washington Post) | Published: 3/5/2019

Republican members of the New Hampshire House are drawing scrutiny for wearing pearl necklaces while activists with Moms Demand Action for Gun Sense in America shared their experiences with gun violence at a recent hearing on a bill that would make it easier to take weapons away from potentially dangerous people. Critics who posted the images on social media said the implication was clear: the politicians thought gun-control activists were “clutching their pearls” in overwrought and self-righteous outrage – and, specifically, female outrage. Some pro-gun advocates argued the legislators’ intent was to represent opposition to the bill. Kimberly Morin, president of the Women’s Defense League of New Hampshire, said opponents of gun control measures have been wearing pearls at gun-related hearings since 2016.

New Mexico: Former Public Servants Lobby Ex-Colleagues
Albuquerque Journal – Dan McKay | Published: 2/28/2019

Former Rep. Debbie Rodella Rodella is one of a few former officials who were public servants during the last legislative session and lobbyists this year, including Keith Gardner, the chief of staff under then-Gov. Susana Martinez. Also making the immediate transition are former Reps. Bealquin Gomez and Jim Smith. New Mexico law does not prohibit ex-lawmakers from lobbying once their terms end. Some legislators have tried repeatedly to change that, with proposals to impose a one- or two-year waiting period. Senate Majority Leader Peter Wirth said a “cooling-off” period would be appropriate. “It just doesn’t feel right to immediately be in a position where you’re coming back to your colleagues, who you were an equal with, and the next day you’re lobbying them on behalf of a client,” said Wirth.

North Carolina: Why a Judge Ruled That the Entire North Carolina Legislature Is Illegitimate
Governing – Alan Greenblatt | Published: 2/27/2019

Wake County Superior Court Judge G. Bryan Collins struck down two constitutional amendments that had been approved by North Carolina voters in November. One regarded voter ID requirements and the other a cap on state income taxes. The amendments had been placed on the ballot by the Republican-controlled Legislature. Collins ruled the lawmakers had no standing to approve constitutional amendments because they were elected using maps that federal courts, up to the U.S. Supreme Court, found to be unconstitutional racial gerrymanders. “An illegally constituted General Assembly does not represent the people of North Carolina and is therefore not empowered to pass legislation that would amend the state’s constitution,” Collins wrote.

Oregon: Lawmakers Come and Go, but the Lobby Remains a Powerful Constant in Oregon Legislature
Portland Tribune – Claire Withycombe, Aubrey Wieber, and Paris Achen | Published: 3/1/2019

Interest groups in Oregon spent $12 million more on lobbying in 2017 than they did a decade earlier. That spending is only part of the cost of doing business in Salem. Donating to campaigns and other political operations is routine – interest groups sank $25 million into last year’s state elections. Now that the legislative session is underway, the focus is on trying to shape the laws and spending that will affect every Oregonian. The lobbyists return year after year, some decade after decade. In contrast, some legislators last only one term. “In a Legislature that has extremely high turnover, there are different institutional forces that have impact on the outcomes of legislation … but the one constant in Salem is gonna be the lobby,” said state Rep. Dan Rayfield.

Oregon: Oregon Legislature Reaches $1.3M Settlement Over Sexual Harassment
Portland Oregonian – Hillary Borrud | Published: 3/5/2019

Oregon legislative leaders announced they have signed a $1.3 million settlement with state labor regulators and nine women who experienced sexual harassment at the Capitol. The women will receive $1.1 million and the Legislature will pay the Bureau of Labor and Industries $200,000 to cover the agency’s legal costs. As part of the deal, the women agreed not to pursue legal action against the Legislature and other named defendants. For its part, the Legislature agreed to implement a list of reforms to make the Capitol a safer place to work, including adopting a definition of harassment with specific examples and using an independent lawyer to handle any discrimination and harassment complaints until it creates a new Equity Office.

South Carolina: SC Politicians, Lobbyists and More 0we $2.4M in Ethics Fines, But Many Will Never Pay
The State – Lucas Deprile | Published: 3/6/2019

There are 337 candidates, political parties, and lobbyists who owe the South Carolina Ethics Commission a total of $2.4 million in fines, many of which will likely never be collected. More than half of those who owed fines eight years ago still have not paid them, even though many large penalties have been reduced. The law says those who fail to file the appropriate forms must pay $10 per report every day after they are notified that they owe money. But after 10 days, that increases to $100 per missing report per day. The maximum fine is capped at $5,000, but until 2011, there was no ceiling to how much someone would owe.

West Virginia: Poster Linking Rep. Ilhan Omar to 9/11 Sparks Outrage at West Virginia Capitol
Los Angeles Times – Eli Rosenberg (Washington Post) | Published: 3/2/2019

The chairperson of the West Virginia Republican Party said the GOP does not condone an anti-Muslim poster displayed at the Capitol during a Republican event that linked U.S. Rep. Ilhan Omar to the September 11 terrorist attacks. The poster featured a picture of planes flying into the World Trade Center with the phrase “never forget, you said” and then under it, a picture of Omar with the words “I am proof you have forgotten.” Del. Michael Angelucci said he heard Sergeant at Arms Anne Lieberman, the chamber’s principal law enforcement official, call all Muslims terrorists. Lieberman disputed that accusation yet submitted a resignation letter. Del. Mike Caputo admitted to kicking open the chamber doors out of anger, an act that reportedly injured a doorkeeper.

National:

Missing in the G.O.P.: Black and Hispanic Nominees for Governor
New York Times – Astead Herndon | Published: 10/3/2018

In the first midterm elections under Donald Trump, whose campaign and presidency included strong appeals to white voters, Republicans have no black or Hispanic nominees for governor in 2018, and few from other racial minorities, in the 36 states holding elections for the position. The overwhelming majority are white men. Democrats this year have nominated black, Hispanic, and Native American candidates for governor in Arizona, Florida, Georgia, Idaho, Maryland, and elsewhere. The Republican falloff is striking after past election seasons when party leaders attempted to identify and then rally behind minority candidates for governor in major states, like Ohio and Pennsylvania.

Federal:

Trump Engaged in Suspect Tax Schemes as He Reaped Riches from His Father
MSN – David Barstow, Susanne Craig, and Russ Buettner (New York Times) | Published: 10/2/2018

Donald Trump won the presidency proclaiming himself a self-made billionaire, and he has insisted his father provided almost no financial help. But an investigation reveals Trump received the equivalent today of at least $413 million from his father’s real estate empire, starting when he was a toddler and continuing to this day. Much of this money came to Trump because he helped his parents dodge taxes. He and his siblings set up a sham corporation to disguise millions of dollars in gifts from their parents. Records indicate Trump helped his father take improper tax deductions worth millions of dollars more. He also helped formulate a strategy to undervalue his parents’ real estate holdings by hundreds of millions of dollars on tax returns, reducing the tax bill when those properties were transferred to him and his siblings.

From the States and Municipalities:

Alabama: ‘Beach House Sheriff’ Used Pistol Permit Fees to Pay for TV Commercials During Campaign
AL.com – Connor Sheets | Published: 10/3/2018

Between October 31, 2017, and July, Etowah County Sheriff Todd Entrekin paid Venture Marketing Group more than $29,000 for work related to television ads. Venture created multiple commercials that only aired during the eight months prior to the June primary election. Even though the ads feature Entrekin speaking about the sheriff’s office and promoting programs he oversees as sheriff, his campaign committee did not pay Venture for the work. Entrekin instead paid the company out of an official sheriff’s office account he alone controls called the Sheriff’s Law Enforcement Fund. Nearly half of the money in the fund is generated by selling pistol permits.

Arizona: This Lawmaker Stands to Earn at Least $11M on His Own Charter Schools. His Votes Helped Lay the Groundwork.
Arizona Republic – Craig Harris | Published: 10/2/2018

Arizona House Speaker J.D. Mesnard and Rep. Eddie Farnsworth amended the state budget to exempt charter schools from procurement and conflict-of-interest laws, and from a requirement to disclose their entire annual spending plans on school websites. Farnsworth was not just a lawmaker interested in the details of the bill. He also runs a four-campus charter chain that because of the amendment would remain free of state oversight of its spending. Farnsworth’s involvement in the last-minute maneuver highlights how his roles as a state lawmaker and charter-school operator have for years mingled at the Capitol, almost always to the benefit of Farnsworth and the state’s other charter school operators.

California: Gov. Brown Signs Bill Requiring Lobbyists to Receive Sexual Harassment Prevention Training
San Francisco Chronicle – Bay City News Service | Published: 10/1/2018

California Gov. Jerry Brown signed a bill that requires lobbyists to receive sexual harassment prevention training.  Assembly Bill 2055 requires lobbyists’ ethics courses to include information on Assembly and Senate policies against harassment, including sexual harassment, in connection with lobbying activities. “We need to make sure that everyone who does business in the Capitol understands what we mean by our zero-tolerance policy. Mandated training is an effective method to get that message across,” Assemblyperson Marc Levine said.

California: New State Law Requires More Transparency from Social Media Political Ads
Voice of OC – Brandon Pho | Published: 10/3/2018

California Gov. Jerry Brown signed a social media disclosure bill into law. A separate bill had bolstered the requirements for disclosing the names of the top three funders of ballot measures and independent expenditures on television, radio, and print ads. Assembly Bill 2188 now extends those same requirements to online platforms. Social media platforms that sell ads directly to advertisers will be required to keep a database of any political ad disseminated on the platform by a committee that purchased $500 or more in ads within a year.

Florida:Lobbyists Paid to Pressure County Officials Skip Filing Required Disclosures, Audit Says
Fort Myers News-Press – Bill Smith | Published: 9/29/2018

An audit found nearly 60 percent of registered lobbyists in Lee County, Florida have missed the required filing of annual or quarterly statements on their activities. The county ordinance covers contact with county commissioners and employees at the director level and above to report contacts with anyone who is paid to “influence the passage, defeat, modification or repeal,” of any matter requiring a commission vote. It also includes non-secretarial employees in the purchasing division and contracts office. Companies that employee lobbyists are required to file an annual registration statement and quarterly statements about lobbying activities.

Kentucky: Ethics Bill Seeks to Close Reporting Loophole on Groups Paying for Legislators’ Travel
Insider Louisville – Joe Sonka | Published: 9/27/2018

An ethics bill pre-filed in Kentucky could close a reporting loophole that allowed groups, including partisan advocacy organizations, to prepay for the out-of-state travel and lodging expenses of state legislators. A recent investigation estimated that up to $100,000 was spent by outside groups on lawmakers’ approved travel outside of the state last year; that spending did not have to be reported to any state agency. While public funds spent on such travel and reimbursements from private groups must be reported, there is no requirement for legislators to disclose how much those organizations spend to send them to conferences and events, so long as such groups pay for the airfare, lodging, and meals in advance.

Mississippi: In Mississippi Senate Race, an African American Democrat Faces a Republican Using a Confederate Symbol
Washington Post – Cleve Wootson Jr. | Published: 9/30/2018

U.S. Senate candidate Mike Espy has tried to remind Mississippians how he has served them in the past, with three terms in the U.S. House who spent time as President Clinton’s agriculture secretary. But even his most ardent supporters worry that when many voters go to the polls in November, what Espy has done will matter much less than what he is: a black man running for one of the highest elected offices in a state with a Confederate emblem on its flag. One of his opponents is hearkening to another version of the past: Republican Chris McDaniel, a conservative fond of provocative statements whose yard signs feature the flag of the Confederate States of America.

New Jersey: Murphy Still Defends Hiring Ex-Official Jailed for Corruption (Even Though He Was Forced to Resign)
Newark Star Ledger – Brent Johnson (NJ Advance Media) | Published: 10/2/2018

Gov. Phil Murphy  continued to defend his administration’s decision to hire a former Passaic City Council member who served prison time for accepting bribes, even after the hiring was deemed unlawful and Marcellus Jackson was forced to resign. Murphy hired Jackson in July for a $70,000-a-year position as a special assistant in the state Department of Education’s Office of Civic and Social Engagement. Murphy said his administration conducted a legal review that cleared Jackson’s hiring. But Attorney General Gurbir Grewal said state law should have prevented the hire because former public officials convicted of corruption are disqualified from ever holding a public job again in New Jersey.

Pennsylvania: Alex Trebek Moderated a Gubernatorial Debate in Pennsylvania. It Didn’t Go Well.
Chicago Tribune – Antonia Noori Farzan (Washington Post) | Published: 10/2/2018

Pennsylvania Gov. Tom Wolf and his Republican challenger, Scott Wagner, met recently in their only debate prior to the November election with “Jeopardy” host Alex Trebek serving as moderator. While moderators typically ask questions and let the candidates talk, Trebek spoke at length – at times sharing his own policy opinions – during the 45-minute debate, frustrating viewers. At one point, Trebek joked that the only thing with a lower approval rating than the Pennsylvania Legislature was the Catholic Church. Polite laughter from the audience turned to boos. On Twitter, the consensus was that Trebek should stick to his day job.

Tennessee: In Tennessee Senate Race, Financial Missteps Linger in the Background
New York Times – Danny Hakim | Published: 10/3/2018

U.S. Rep. Marsha Blackburn, the Republican candidate for an open Senate seat in Tennessee, has faced questions about her spending practices. In her years as a member of Congress, she has paid out more than $370,000 from her campaign funds to her daughter and son-in-law or firms they control. Her campaigns have received 54 requests for additional information from the FEC since 2002, and in a 2008 audit, the campaign admitted receiving nearly $400,000 in unreported contributions and expenditures. Her opponent, Phil Bredesen, has had his own financial misstep. A longtime booster of the solar industry as governor, he started a solar company with two of his aides during his last year in office. After he left office, the business went on to reap some of the tax breaks the Bredesen administration had put in place.

Vermont: Governor’s Business Ties Violate State Ethics Code, Commission Finds
VTDigger.org – Mark Johnson | Published: 10/2/2018

Vermont Gov. Phil Scott violated the ethics code by maintaining an ongoing financial relationship with a company doing business with the state, according to the Vermont State Ethics Commission. Under political pressure, Scott sold his interest in Dubois Construction back to the company after he took office in 2017. Scott received no cash at the time of the transaction and is still owed $2.5 million by the company. The commission said the conflict arose when Dubois won a two-year contract for $250,000 in 2017, which the panel said “provides significant income to the company, and directly assists the company in meeting its financial obligation to the public official.”

Washington: Washington Court Upholds Fine Against Anti-GMO Group
Capital Press – Don Jenkins | Published: 10/3/2018

An appeals court affirmed that Food Democracy Now must pay a $319,281 fine for not reporting the names of more than 7,000 donors who supported a food labeling initiative in 2013. The court rejected the group’s argument that it should not have been convicted because it did not intentionally hide the donations. Judge Rich Melnick said the law does not make an exception for unintentionally concealing the source of campaign contributions. The fine stemmed from Initiative 522, which would have required food and beverage makers to label products with genetically modified ingredients.

National:

Republicans Running for Governor Look for Success in Unlikely Places: Blue states
Washington Post – Tim Craig | Published: 9/9/2018

Democrats are becoming concerned as moderate Republican candidates are proving to be resilient in unexpected places, even as much of the GOP shifts to the right. With 36 gubernatorial races on the ballot nationwide, Democrats are still expected to make gains in statehouses this year. But recent polls suggest Republicans Larry Hogan of Maryland, Charlie Baker of Massachusetts, and Phil Scot and of Vermont, all up for re-election this fall in states carried by Hillary Clinton in 2016, remain among the most popular governors in the country and are favored to win re-election. Their success in winning and governing as moderates is serving as a model for GOP candidates elsewhere, including in Rhode Island and Oregon, where officials in both parties say the governor’s race is competitive.

Viral Videos Are Replacing Pricey Political Ads. They’re Cheaper, and They Work.
MSN – Jeremy Peters and Sapna Maheshwari (New York Times) | Published: 9/11/2018

The wave of female, minority, and outsider candidates that is breaking cultural barriers and toppling incumbents in the Democratic Party is also sweeping aside a longstanding norm in campaigns: that the public image of politicians, especially women, should be upbeat and conventional. For many of these Democrats who were running against better-financed rivals, the breakthrough moment came after they got personal in relatively low-cost videos that went viral, reaching millions of people. Using documentary-style storytelling, candidates have found a successful alternative to the traditional model of raising huge sums of money that get spent on expensive television commercials.

Federal:

Activists Raised $1 Million to Defeat Susan Collins If She Votes for Kavanaugh. She Says It’s Bribery.
Washington Post – Eli Rosenberg | Published: 9/11/2018

U.S. Sen. Susan Collins of Maine, a centrist Republican, is seen as a swing vote in Brett Kavanaugh’s nomination to the Supreme Court. She has said she would not vote to confirm a nominee who was hostile to Roe v. Wade. So, a group of liberal activists in Maine created an unusual crowdfunding campaign to influence Collins: they raised money in the form of pledges they said they would give to whoever decided to challenge her re-election in 2020. Donors’ credit cards will only be charged if she votes to confirm Kavanaugh. At least one ethics expert said it may violate federal bribery statutes, which prohibit giving or offering anything of value to government officials in exchange for any acts or votes.

Campaigns, Parties Can Accept Free Service From Microsoft, FEC Says
Roll Call – Stephanie Aiken | Published: 9/10/2018

The FEC ruled Microsoft may offer special cybersecurity assistance to candidates without violating rules against corporate contributions. One watchdog group called it an unprecedented opening for corporations looking to influence lawmakers and skirt campaign finance laws. Federal election law prohibits companies from providing free services to lawmakers. But the FEC would make an exception in this case, it ruled, because Microsoft would be acting out of business interests and not trying to curry favor. The decision also noted Microsoft has promised to offer the services “on a non-partisan basis.” Opponents of the change said the exception was too broad.

In an Increasingly Diverse House, Aides Remain Remarkably White
WRAL – Nicholas Fandos (New York Times) | Published: 9/11/2018

U.S. House aides write federal policy, oversee the administration of government, and shape the public’s view of Congress. But the top staff members of the House are far less racially diverse than the country itself, or even the lawmakers who employ them. Approximately 14 percent of top staff members in the House are people of color. That compares with 38 percent of the country and 23 percent of the House. Of the 40 top Democratic and Republican aides who lead the staffs of committees, only six are nonwhite. “The House of Representatives cannot effectively create public policy that benefits all Americans if the people making policy decisions do not look like all of America,” said Spencer Overton, the president of the Joint Center for Political and Economic Studies, which released the study.

From the States and Municipalities:

California: Banning Man Wins $220,000 from State Political Watchdog Panel
Riverside Press-Enterprise – Craig Schultz | Published: 9/7/2018

Frank Burgess was awarded more than $200,000 in legal fees after a court found the California Fair Political Practices Commission (FPPC) violated his Constitutional protections related to a fine levied against him as a member of a nonprofit hospital board. Burgess was fined $5,000 by the FPPC for trying to convince other members of the San Gorgonio Hospital board to continue doing business with his son’s moving and storage company. Burgess argued that as a nonprofit board, members did not fall under the Political Reform Act. A Superior Court judge overturned the fine, agreeing with Burgess’s contention that he had been denied due process because he had no forewarning he was considered a public official.

California: Koch-Backed Charity Must Reveal Donor List to California Officials, Appeals Panel Rules
Connecticut Post – Michelle Ye Hee Lee (Washington Post) | Published: 9/11/2018

A federal appeals court ruled the charity Americans for Prosperity (AFP) Foundation, which is linked to billionaire Charles Koch, must disclose its donors to California officials. The foundation had argued the state’s rules requiring filing of the donor list violate the First Amendment by discouraging individuals from giving and by exposing them to threats and harassment. The case could test the ability of state agencies to compel nonprofits to disclose the identities of their donors, particularly ones that are tied to “social welfare” nonprofits, commonly referred to as “dark money” groups. One such group is Americans for Prosperity, the main political arm of the influential Koch network. AFP Foundation, a sister organization, is a charity that focuses on education and research.

Colorado: Colorado’s Independent Ethics Commission on Uncertain Course
Colorado Springs Gazette – Marianne Goodland | Published: 9/10/2018

Critics say the Colorado Independent Ethics Commission’s (IEC) structure, staffing, and funding make it impossible for the public to have any confidence that ethics issues – whether it is investigations into potential violations, training for government employees, or guidance – are handled in a logical or even timely manner. The monthly commission meetings focus on complaints and advisory opinions. But most of the meetings are conducted in executive sessions behind closed doors. During those sessions, commissioners decide which complaints are frivolous and then will make public what they have decided. Between 2008 and 2017, the IEC received 196 complaints. All but 20 were dismissed as frivolous, out of the IEC’s jurisdiction, or withdrawn. Whether those complaints were truly frivolous will never be known.

Iowa: Iowa Governor Flew to Game on Vendor’s Plane
Associated Press – Ryan Foley | Published: 9/12/2018

Gov. Kim Reynolds received approval from Iowa Ethics and Campaign Disclosure Board Director Megan Tooker to fly with her family to Iowa State’s bowl game last year free of charge on the jet of a state vendor. Reynolds accepted the trip as a campaign donation from Sedgwick’s chief executive officer, who says he reimbursed his company for the plane’s use. The governor’s office said “bona fide campaign events” would take place during the half-day trip. Tooker said in December the governor could accept the flight, although Tooker now says she was unaware the airplane was owned by Sedgwick. Tooker also says she does not know what campaign activity Reynolds engaged in during the trip, which would be required for the flight to be considered an allowable campaign contribution instead of an illegal gift.

Kentucky: What’s Bevin Hiding? Worker Who Got $215K Raise Is His Old Army Buddy
Louisville Courier-Journal – Tom Loftus and Morgan Watkins | Published: 9/12/2018

When Kentucky Gov. Matt Bevin wanted a new state chief information officer, he did not do a national search – he hired an old Army buddy and longtime business associate last October at a salary that now leads the nation for similar state. Some state lawmakers were stunned when it was reported Bevin gave Charles Grindle a $215,000 pay raise, an unusual 134 percent increase after less than a year on the job. Neither Bevin nor Grindle have responded to requests for information about their relationship and any role it might have played in Grindle’s hiring and rapid increase in pay. A former official of the Commonwealth Office of Technology said Grindle spoke openly about his long friendship with Bevin and that he had worked for Bevin in an unspecified capacity before going on the state payroll.

Maryland: Baltimore Ethics Board Rejects Mayor Pugh’s Request for Sweeping Exemption from Fundraising Rules
Baltimore Sun – Ian Duncan | Published: 9/7/2018

The Baltimore Board of Ethics rejected Mayor Catherine Pugh’s request to be exempted from rules that bar city employees from raising money for charitable causes without prior approval. Pugh was seeking a waiver so she could solicit funds from private donors that would help pay for her administration’s social programs and other community initiatives. The board said it was unwilling to grant a blanket exception to Pugh, who could still seek waivers on a case-by-case basis. Pugh;’s office said she needed the new fundraising powers to bolster the city’s existing budget. Board member Stephan Fogleman said he was concerned the waiver the mayor sought would have made it difficult for the public to know what she was raising money for.

Michigan: Why This U-M Regent Just Returned Thousands in Campaign Donations
Detroit Free Press – Matthew Dolan and David Jesse | Published: 9/13/2018

Wealthy alumni who have sway over the University of Michigan’s $11billion endowment have given thousands in campaign donations to members of the university’s governing board. A review of state records shows two members of the university’s elected Board of Regents accepted in total nearly $30,000 in contributions from donors associated with funds receiving university investments. In addition, a family who helps guide the university’s investment strategy gave more than $29,000 to the board’s longest-serving member. To critics, some of the donations could pose a conflict-of-interest. Regent Andrea Fischer Newman pledged to return thousands of dollars in campaign contributions from three wealthy businesspeople who help control millions of dollars in university investments.

Missouri: Court Affirms Major Blow to Missouri Amendment Restricting Campaign Donations
St. Louis Public Radio – Jason Rosenbaum | Published: 9/10/2018

A federal appeals court upheld a lower court ruling that Missouri’s ban on donations from one PAC to another is unconstitutional. The Eighth Circuit U.S. Court of Appeals ruled the ban on PAC-to-PAC giving violates committees’ right to free speech. The appeals court ruled the Missouri Ethics Commission failed to show PAC-to-PAC contributions would breed corruption because the groups are not controlled by a candidate and operate independently from any party running for political office. The decision permanently stops the commission from enforcing the ban.

Ohio: Ethics Panel Imposes Stricter Rules on Ohio Lawmaker Travel
WOSU – Jo Ingles | Published: 9/11/2018

The Ohio Joint Legislative Ethics Committee said lawmakers and their employees cannot accept travel expenses from lobbyists unless those result from participation in a panel, seminar, or speaking engagement or were incurred at a meeting of a national organization of which any state agency is a dues paying member. When it comes to sharing rides with lobbyists for personal travel, starting immediately, lawmakers must reimburse the cost of their travel within a week.

Washington: Washington AG to Press for $18 Million Fine Against Foodmakers
Capital Press – Don Jenkins | Published: 9/6/2018

Washington Attorney General Bob Ferguson said his office will seek to restore an $18 million fine against the Grocery Manufacturers Association (GMA), which an appeals court overturned recently. The court upheld GMA’s conviction and left in place a $6 million judgment for shielding the names of food and beverage companies that contributed to a campaign against a GMO-labeling initiative in 2013. The court ruled, however, that a lower court judge erred by finding that GMA intentionally broke the law and tripling the penalty. Even at $6 million, the fine would be the largest campaign finance penalty in U.S. history.

National:

Despite Year-of-the-Woman Buzz, Female Candidates Lag Behind Men in Pulling in Campaign Cash
The News-Times – Michelle Ye Hee Lee and Anu Narayanswamy (Washington Post) | Published: 8/16/2018

Even as a record number of women run for office this year, female congressional candidates trail their male counterparts when it comes to fundraising. Of candidates who showed viability by raising at least $50,000, men running for the House had collected almost 17 percent more on average than their female counterparts by the end of June. One key factor is many female candidates lack relationships with longtime donors who work in traditionally male-dominated industries such as finance. That is a particular challenge for women this cycle, because the majority are newcomers to politics and, like any non-incumbent, must build donor networks from scratch. But their task is often more difficult, some female candidates said, because of skepticism about their potential, based on their gender.

Federal:

Elizabeth Warren Unveils Plans to Root Out Corruption in Washington, Ensure Federal Government Works for Americans
MassLive.com – Shannon Young | Published: 8/21/2018

U.S. Sen. Elizabeth Warren introduced the Anti-Corruption and Public Integrity Act, which lays out a multi-step approach to ending corruption and increasing public integrity. It calls for permanently banning elected and appointed officials from becoming lobbyists after they leave office, barring presidents and federal lawmakers from owning companies while in office, and ending “legalized lobbyist bribery” by preventing them from writing campaign checks or giving personal gifts to candidates or lawmakers. The bill would also create an independent anti-corruption agency dedicated to enforcing federal ethics laws and requiring elected officials and candidates to disclose more financial and tax information, among other provisions.

Hunter Indictment Could Jeopardize GOP Seat
Politico – John Bresnahan and Rachel Bade | Published: 8/21/2018

U.S. Rep. Duncan Hunter and his wife were indicted on allegations of using more than $250,000 of campaign funds for personal expenses, including family vacations, private school tuition for their children, dental work, and an airline ticket for a pet rabbit. The indictment portrays the Hunters as a couple with serious financial problems. They allegedly overdrew their joint checking account more than 1,100 times during a seven-year period, leading to more than $37,000 in overdraft charges. Hunter’s indictment endangers a traditionally conservative southern California seat long held by Republicans. Hunter cannot take his name off the November ballot and California does not allow write-in candidates.

Michael Cohen Says He Arranged Payments to Women at Trump’s Direction
MSN – William Rashbaum, Maggie Haberman, Ben Protess, and Jim Rutenberg (New York Times) | Published: 8/21/2018

Michael Cohen, President Trump’s former personal lawyer, pleaded guilty to campaign finance violations and other charges, saying Trump directed him to arrange the payment of hush money to adult film actress Stormy Daniels and former Playboy model Karen McDougal to fend off damage to his White House bid. Cohen’s admission marks the first time any Trump associate has gone into open court and implicated Trump himself in a crime. Under federal law, expenditures to protect a candidate’s political fortunes can be construed to be campaign contributions, subject to laws that bar donations from corporations and set limits on how much can be given. Trump denied to reporters in April that he knew anything about Cohen’s payments to Daniels.

From the States and Municipalities:

California: Developer Whose Wife Sat on Ethics Commission Faces $15,000 Fine Over Political Donations
Los Angeles Times – Emily Alpert Reyes and David Zahniser | Published: 8/20/2018

Six years ago, city council President Herb Wesson drew criticism for putting the wife of a campaign fundraiser on the Los Angeles Ethics Commission, a panel that votes on fines for people who violate political contribution rules. Wesson had selected nonprofit executive Erin Pak, who was also the wife of architect and real estate developer Chris Pak, host of fundraising events for Mayor Eric Garcetti and other local politicians. Erin Pak left the commission three years ago. Now, Chris Pak is facing $15,000 in proposed fines from the commission for giving contributions that exceeded the city limit. All but one of the violations took place during the period when Erin Pak was on the commission.

Florida: After a Florida Democrat Said She’d Take Donations from the Marijuana Industry, Wells Fargo Closed Her Bank Account
Washington Post – Christopher Ingraham | Published: 8/20/2018

Nikki Fried, who is running for agriculture commissioner in Florida, said Wells Fargo terminated her campaign’s account because of her links to the medical marijuana businesses. Fried said the action came after the bank questioned her about her campaign platform and donations she had taken, as well as her stance on medical marijuana. Wells Fargo spokesperson Jennifer Dunn said the bank’s policy is to not provide services for businesses related to marijuana businesses. Fried has accepted campaign contributions from lobbyists connected to medical marijuana. If such a policy were applied nationwide it could potentially jeopardize the banking access of dozens of state and national politicians.

Georgia: Georgia Voting Rights Activists Move to Block a Plan to Close Two-Thirds of Polling Places in a Majority Black County
Chicago Tribune – Vanessa Williams (Washington Post) | Published: 8/18/2018

Randolph County in rural Georgia wants to eliminate all but two of the county’s polling locations just months before the midterm elections because they are not in compliance with disabilities laws. Some residents and progressive groups allege the move was aimed at suppressing turnout in the county, in which more than 55 percent of the voters are black and have backed Democratic candidates in statewide elections. Activists noted many residents have low incomes and the county, which covers 431 square miles, has no public transportation system. All nine of the polling places were used for the May primaries and less than a month ago for statewide run-offs.

Kentucky: Loophole Allows Organizations to Pay for Legislators’ Out-of-State Travel Without Disclosing Amounts
Insider Louisville – Joe Sonka | Published: 8/22/2018

Due to a loophole in Kentucky’s ethics law, a large majority of travel expenditures for state lawmakers covered by private organizations are not required to be disclosed by lawmakers to the Legislative Research Commission or the Kentucky Legislative Ethics Commission. John Schaaf, executive director of the ethics panel, said this reporting loophole occurs when those groups pay in advance for legislators’ travel, as “there is no disclosure required of expenses prepaid for transportation, food and lodging.” Events organized by outside groups are sometimes funded by businesses and interests that lobby the Legislature.

Louisiana: Louisiana Senate President Sank Ride-Sharing Bill. His Close Pal Sells Insurance to Cabs.
ProPublica – Rebekah Allen | Published: 8/23/2018

Ride-sharing companies are not coming to many parts of Louisiana anytime soon because the state does not have legislation in place allowing them to operate. It is one of only five states that lacks such a law, instead requiring the companies to go through the costly and time-intensive process of getting approval in each locality. A bill to change that has garnered widespread and bipartisan support among politicians and was favored by many economic development groups. But the legislation has been blocked by Senate President John Alario. Many observers noted Alario’s close personal, professional, and political alliance with former Sen. Francis Heitmeier, who makes a living selling insurance to cab companies and lobbied against the ride-sharing bill. The cab industry was one of the few opponents of the measure.

Mississippi: Inside a Super PAC That Spends on Everything but Winning
Associated Press – Brian Slodysko | Published: 8/16/2018

Two billionaire political donors poured $1.25 million into a super PAC that was supposed to supercharge Chris McDaniel’s insurgent bid to be Mississippi’s next Republican senator. A year later, much of the money from Richard Uihlein and Robert Mercer is gone. Only a fraction was spent reaching voters who could boost the former state lawmaker’s uphill battle against Cindy Hyde-Smith in a November special election that will determine who finishes out Sen. Thad Cochran’s term. What the Remember Mississippi super PAC has provided, however, is a generous payday for at least 18 campaign consultants who received the lion’s share of the money.

Montana: Montana’s Campaign-Contribution Limits Appealed to U.S. Supreme Court
KXLH – Mike Dennison | Published: 8/17/2018

James Bopp Jr. asked the U.S. Supreme Court to overrule a 2017 lower-court ruling that upheld Montana’s limits on campaign contributions for state candidates. Bopp has been an attorney in many cases challenging limits on campaign spending and contributions, including Citizens United. His appeal in the Montana case is the latest development in a seven-year-old lawsuit challenging the state’s contribution limits, which were enacted by initiative in 1994.

New York: A Corrupt Lobbyist’s Influence in the Cuomo Administration Is Revealed in Newly Disclosed Emails
New York Times – Jesse McKinley | Published: 8/20/2018

New York Gov. Andrew Cuomo has repeatedly downplayed his relationship with his former aide Todd Howe, who became key figure in a pair of federal corruption cases after pleading guilty and reaching a deal with prosecutors. Howe’s cooperation in those cases helped convict two other former top aides: Joseph Percoco, once one of Cuomo’s closest friends and trusted advisers, and Alain Kaloyeros, the economic expert who the governor praised as a genius. But in nearly 350 pages of emails, it was clear Howe had entree to the top levels of Cuomo’s administration, a period that included the time leading up to the news of the federal probe.

New York: Cuomo Signs Bill Banning Use of Paid Intermediaries to Win State Pension Fund Business
New York Daily News – Kenneth Lovett | Published: 8/21/2018

New York Gov. Andrew Gov. Cuomo signed legislation that bars firms from using placement agents, paid intermediaries, and registered lobbyists in obtaining investments from the state pension fund. Assembly Bill 3137 puts into law a policy adopted by Controller Thomas DiNapoli nearly a decade ago amid a “pay-to-play” scandal. The probe resulted in eight people being charged criminally, including two, former state Controller Alan Hevesi and his political consultant Hank Morris, who went to prison.

West Virginia: How One West Virginia Supreme Court Justice Gave Natural Gas a Big Victory and Shortchanged Residents
ProPublica – Ken Ward Jr. | Published: 8/20/2018

The West Virginia House impeached the four sitting justices on the state Supreme Court for extravagant spending, among other charges. Justice Beth Walker was impeached over allegations of irresponsible spending and poorly managing the court’s administrative affairs. Left unmentioned in the debate has been a peculiar vote by Walker that benefited the natural gas industry. She made an unusual decision to reopen a case and then reverse a Supreme Court ruling that would have forced drillers to pay more in profits to residents. Walker made the decision around the time her husband owned stock in a variety of energy companies, including those participating in West Virginia’s growing gas boom.

National:

Ethics Charges Could Hurt Fight Against Legionnaires’ Disease
Detroit Free Press – John Wisley | Published: 7/5/2018

Conflict-of-interest charges could derail a nationwide effort to curb outbreaks of deadly Legionnaires’ disease. The U.S. Centers for Disease Control and Prevention, Department of Veterans Affairs, the New York City Department of Health and Mental Hygiene, and representatives of the Mayo Clinic have withdrawn from a scientific committee that has been working on the topic for years. At issue is NSF International, a nonprofit research company that has been coordinating an effort to develop new plumbing standards to reduce the growth of legionella bacteria inside buildings. NSF has said one of its for-profit ventures was partnering with Homeyer Consulting Services to help companies meet the new standard once it is approved.

Is This the Year Women Break the Rules and Win?
New York Times – Kate Zernike | Published: 6/29/2018

This year’s midterm elections have produced a surge of women like Alexandria Ocasio-Cortez, who defeated U.S. Rep. Joseph Crowley, across the country: progressive candidates running outsider campaigns powered by strong personal narratives and women’s activism that began with massive marches the day after President Trump’s inauguration and has grown through protests against gun violence and immigration policies that divide families. Whether other women become overnight stars like Ocasio-Cortez –or Stacey Abrams, whose win in the Democratic primary for Georgia governor – in Georgia sparked similar excitement – depends on the dynamics of each state or district.

Federal:

EPA Leader Scott Pruitt Out After Numerous Scandals
CNBC – Tom DiChristopher | Published: 7/5/2018

Environmental Protection Agency Administrator Scott Pruitt resigned after months of controversies over his lavish spending, ethical lapses, and contentious management decisions eroded President Trump’s confidence in one of his most ardent Cabinet members. Pruitt’s litany of ethics scandals included questions about taxpayer-funded first-class travel, a discounted condominium rental from a lobbyist, the installation of a $43,000 soundproof phone booth in his office, and asking staff to help search for a six-figure job for his wife. In recent weeks, an exodus of trusted staffers left Pruitt increasingly isolated, and some once-loyal Republican lawmakers wearied of defending him. There are more than a dozen federal inquiries into Pruitt’s spending and management of the agency.

News Media Paid Melania Trump Thousands for Use of Photos in ‘Positive Stories Only’
NBC News – Andrew Lehren, Emily Siegel, and Merritt Enright | Published: 7/2/2018

First lady Melania Trump reportedly earned between $100,000 and $1 million in royalties from Getty Images in 2017 for the use of photographs that under a licensing could only be used in “positive coverage.” At least 12 news organizations last year used some of the photos. Several said they were not aware the images were part of a licensing deal that profited the first lady. While it is not unusual for celebrities to sign deals governing the use of their images, it is unusual for the first lady to be party to such an agreement. Getty’s licensing agreement does not offer any hint that money is also paid to the Trumps, and the arrangement did not appear to have become public until the income was listed in President Trump’s May financial filing.

Supreme Court Defeat for Unions Upends a Liberal Money Base
Seattle Times – Noam Schreiber (New York Times) | Published: 7/1/2018

The U.S. Supreme Court ruled that requiring nonmembers to make union payments violated their First Amendment rights, since much of what unions do could be considered political activity at odds with their beliefs. In addition to unions, the decision will impact a network of groups dedicated to advancing liberal policies and candidates. Together, they have benefited from tens of millions of dollars a year from public-sector unions, funding now in jeopardy because of the prospective decline in union revenue. Liberal activists argue that closing that pipeline was a crucial goal of the conservative groups that helped bring the case. “If the progressive movement is a navy, they’re trying to take out our aircraft carriers,” said Ben Wikler, Washington director of MoveOn.org.

Trump Docket: New justice could sway court on president’s personal cases
Politico – Josh Gerstein | Published: 7/5/2018

Lawsuits pending over Donald Trump’s personal and business conduct could put his nominee to the U.S. Supreme Court in an awkward position: deciding whether to cast potentially pivotal votes on legal matters of keen importance to the president. Virtually all justices wind up ruling on policy issues affecting the president who appointed them. But Trump is enmeshed in more than half a dozen significant court cases involving everything from his alleged sexual behavior before taking office to claims his businesses are profiting from his presidency and allegations he misused funds through his charitable foundation. The justices also could be asked to rule on whether Robert Mueller’s probe of Russian interference in the 2016 election was legally authorized or whether Trump has the authority to dismiss the special prosecutor.

From the States and Municipalities:

Florida: Where Does She Live? A Miami Lawmaker’s Bizarre Attempt to Reside in Her District
Miami Herald – Sarah Blaskey and David Smiley | Published: 7/3/2018

State Sen. Daphne Campbell, longtime owner of a home inconveniently located outside the community she has represented as a member of the Florida House and Senate, has been difficult to find at home over the last 30 months. More accurately, her home has been difficult to find. That is until late June, when she switched her voter registration to a house in North Miami Beach. It is one of at least four addresses she has listed over the last six years after a statewide redrawing of House districts placed her own home outside the boundaries and forced her into a series of temporary residences. The extent to which she has actually lived at any of them is questionable.

Georgia: Campaign Contributions to Top Candidates Raise Questions
Washington Times; Associated Press –   | Published: 6/29/2018

The Atlanta Journal-Constitution found donations of more than $325,000 to Secretary of State Brian Kemp’s campaign from people tied to licensees and companies regulated by his office. The newspaper found contributions of more than $240,000 to Lt. Gov. Casey Cagle’s campaign before the beginning of the 2018 legislative session from lobbyists, members of their family, or their firms, as well as another $40,000 donated after the session ended. Kemp and Cagle are locked in a runoff for the Republican nomination for governor. Critics say donations to Kemp by people with ties to businesses under the oversight of his licensing or securities divisions could undermine the credibility of one of the state’s top regulators.

Illinois: ‘I Snookered Them’: Illinois Nazi candidate creates GOP dumpster fire
Politico – Natasha Korecki | Published: 6/29/2018

Illinois Republicans botched four opportunities to stop an avowed Nazi from representing their party in a Chicago-area congressional district. Now they are paying the price. Arthur Jones, a Holocaust denier who will appear on the November ballot as the GOP candidate against U.S. Rep. Dan Lipinski, has become campaign fodder for Democrats as they seek to defeat Gov. Bruce Rauner. And some Republicans even fear the taint from Jones‘s extremist views poses a threat to the party up and down the ticket.

Indiana: New Pay-to-Play Ban Approved
Fort Wayne Journal Gazette – Rosa Salter Rodriguez | Published: 6/28/2018

The Fort Wayne City Council overrode a veto to approve a bill that aims to prevent the appearance of “pay-to-play” practices in the awarding of certain city contracts. The ordinance prohibits “business entities” from bidding on city contracts if any officer, partner, or principal with more than a 10 percent ownership share in the entity and subsidiaries controlled by it contributes more than $2,000 a year to a political campaign of someone with ultimate responsibility for awarding city contracts.

Kentucky: Kentucky Broke Law by Blocking Poor People’s Campaign from Capitol, Beshear Says
Lexington Herald-Leader – Jack Brammer | Published: 7/2/2018

Anti-poverty demonstrators were illegally restricted from entering the Capitol in June under a policy that is not an official state regulation, Kentucky Attorney General Andy Beshear said. The opinion deferred constitutional questions raised by the policy, suggesting those could be addressed if Gov. Matt Bevin’s administration completes the process for establishing regulations on access to the Capitol. The Kentucky Poor People’s Campaign staged a series of seven demonstrations. During each standoff at the Capitol’s front door, scores of demonstrators asked if they could enter as a group. But they were blocked by a large state police presence and told of a new policy that allowed two members of the group to be in the building at a time.

New Jersey: New Jersey to Spend $5 Million on Reviving Local Journalism
WPG Talk Radio – Michael Symons | Published: 7/3/2018

New Jersey’s new state budget includes $5 million for a first-of-its-kind nonprofit effort to help finance local journalism in cities and towns where it has been decimated. Some of the money could be used to strengthen traditional media sources, such as newspapers and radio stations, and existing local websites. Funds might be used for seed investments in startups in areas without local news, or even media literacy programs. “Studies have shown what happens when local news coverage dries up or disappears. Fewer people vote. Fewer people volunteer. Fewer people run for public office. Corruption increases,” said Mike Rispoli of the media reform advocacy group Free Press.

New York: Upcoming SCOTUS Case Could Complicate NY Effort to Close Double Jeopardy ‘Loophole’
New York Law Journal – Colby Hamilton and Dan Clark | Published: 7/2/2018

The U.S. Supreme Court agreed to hear a case a case challenging the legal principle that the federal government and those of the states represent “separate sovereigns,” a long-held doctrine that has provided a work-around for state and federal prosecutors faced with constitutional double jeopardy concerns. It comes at a critical moment for supporters of changes to New York’s double jeopardy protections. Under certain circumstances, individuals close to President Trump, facing federal prosecution, could see a pardon absolve them of not only federal charges, but bar state prosecutors from bringing a similar case under New York law.

Oregon: Black Oregon Legislator Says Campaigning in Own District Triggered 911 Call
Portland Oregonian – Everton Bailey Jr. | Published: 7/3/2018

A black state representative in Oregon said one of her constituents called the police on her while she was canvassing a neighborhood in her district. Rep. Janelle Bynum said someone called the police on her to report that she “was going door to door and spending a lot of time typing on my cell phone after each house.” Bynum is up for re-election in November and said she was taking notes on her phone from conversations with constituents. A number of incidents in which police were called on people of color doing normal activities have gained widespread attention in recent months.

Virginia: Lobbying Firm to Va. Lawmakers: If you refuse Apco money, you won’t get any from us
Richmond Times-Dispatch – Patrick Wilson | Published: 6/25/2018

The law and lobbying firm Hunton Andrews Kurth said it would no longer make campaign contributions to Virginia lawmakers unless they also accept donations from one of the firm’s clients, Appalachian Power Co. The move affects legislators who signed a pledge saying they will not accept political money from the state’s regulated energy companies – Dominion Energy and Appalachian – to avoid the appearance of the companies’ undue influence on lawmakers. Whitt Clement, who heads the state government relations practice group at Hunton Andrews Kurth, said the lawmakers who do not accept contributions from Appalachian are being shortsighted because the company is an important corporate citizen in Virginia.

Why should you be aware of best practices and recent trends regarding lobbying and gifts? Reputation is your company’s most valued asset. Perception is everything. This short educational video is a must-see for all government relations professionals involved in advocacy and lobbying compliance at the state and local level.

Adopting best practices for state and local lobbying and gift compliance will help your company avoid fines, debarment, or brand damage. Companies with a strong reputation for ethics compliance can better establish their role as industry leaders and trusted advisors.

Click here to view this video on best practices and recent trends for lobbying and gift-giving – and ensure you and your team can say “I Comply!”

It is not too early to start planning…Not for Thanksgiving, Christmas, or New Year’s Eve. I am talking about 2018 legislative sessions, primary elections, and the November 6th general election.

The Research Department at State and Federal Communications has been busy, busy, busy updating our website with the important dates you need for 2018.

• When will the states go into session? √
• When are lobbying reports due? √
• Will there be blackout periods in 2018? √
• When will the primaries be held in the states? √
• When are pre- and post-election reports due? √
• Does every state have a general election in 2018? √

You just cannot go wrong when connected with the State and Federal Communications Community to know when your reports are due; elections are held; and when legislatures convene, adjourn, recess, and go into special session.

Access is easy for our subscribers. Sign onto StateandFed.com and input your login and password. The world is then at your fingers. If you need assistance with your access information, please call Megan Huber-Kovachik or Tony Didion at 330-761-9960 and they will provide the information.

You might not be able to tell by my desk, but my calendar is organized. Staying on top of these important compliance dates will help you manage your time in 2018.

This year is almost ending, which is hard to believe. Rest assured, State and Federal Communications is at your side for 2018.

All the state government and ethics news you might have missed in this weeks video digest!

Ethics

“Jeff Sessions Testifies: Refuses to say whether he spoke to Trump about Comey’s handling of Russia investigation” by Sari Horwitz, Devlin Barrett, and Matt Zapotosky for Washington Post

“Religious Liberals Sat Out of Politics for 40 Years. Now They Want in the Game.” by Laurie Goodstein for New York Times

“COVFEFE Act Would Make Social Media a Presidential Record” by Joe Uchill for The Hill

Arizona: “Now Under Indictment, Gary Pierce Was Known for Unpopular Decisions as Utility Regulator” by Ryan Randazzo for Arizona Republic

Florida: “No Charges Filed in Mysterious Autism Charity Case” by Monique Madan for Miami Herald

Montana: “Anger Management but No Jail in Gianforte Body-Slam Saga” by Bobby Caina Calvan and Amy Beth Hanson (Associated Press) for KWWL

Oregon: “Oregon Bill Will Set Public Records Deadlines” by Hillary Borrud for Portland Oregonian

Elections

“Russian Cyber Hacks on U.S. Electoral System Far Wider Than Previously Known” by Michael Riley and Jordan Robertson for Bloomberg.com

Legislative Issues

“Senate Republicans Back Off Proposed Restrictions on Media” by Alexander Bolton for The Hill

South Carolina: “Lack of Guidance from South Carolina Lawmakers on Lieutenant Governor’s Role Clouds Start of 2018 Elections” by Maya Prabhu for Charleston Post and Courier

Lobbying

“Lobbyists’ Foreign Agent Filing Raises Questions” by John Hudson for BuzzFeed.com

Campaign Finance

Arizona: “What Happens When One of Your Financial Backers Is Indicted?” by Ronald Hansen and Yvonne Wingett Sanchez for Arizona Republic

Florida: “It’s the End for the Miami Beach Mystery PAC – a Political Whodunit” by Nicholas Nehamas and Joey Flechas for Miami Herald

Michigan: “How Bingo Games Led to $500K Fine for Mich. Democratic Party” by Kathleen Gray (Detroit Free Press) for USA Today

New Mexico: “Audit Reveals Questionable Campaign Spending” by Dan Boyd for Albuquerque Journal

Ethics

“Role of Trump’s Personal Lawyer Blurs Public and Private Lines” by Rebecca Ruiz and Sharon LaFraniere for New York Times

“D.C. and Maryland Sue President Trump, Alleging Breach of Constitutional Oath” by Aaron Davis for Washington Post

Idaho: “Idaho Legislature to Re-Examine Ethics, Campaign Finance Laws” by Betsy Russell for Spokane Spokesman-Review

Oklahoma: “Oklahoma Ethics Commission Hikes Fee $50 on All Filers” by William Savage III for NonDoc.com

Redistricting

“Supreme Court Could Tackle Partisan Gerrymandering in Watershed Case” by Robert Barnes for Washington Post

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