April 17, 2015 • Written by Jonathan Spontarelli

News You Can Use Digest – April 17, 2015

National: Europe at Risk of Corruption from Lobbying – Report BBC – Damian Grammaticas | Published: 4/14/2015 Lack of control over lobbyists threatens to undermine European democracies, said Transparency International, which is calling for new regulations. In a report assessing legal […]

National:

Europe at Risk of Corruption from Lobbying – Report
BBC – Damian Grammaticas | Published: 4/14/2015

Lack of control over lobbyists threatens to undermine European democracies, said Transparency International, which is calling for new regulations. In a report assessing legal and other safeguards against opaque lobbying practices in 19 of the 28 European Union (EU) states and three EU institutions, it found only two countries – Slovenia and Lithuania – had even half the level of protection that the organization thought was necessary to protect against “undue influence” by vested interests. Among Transparency International’s concerns were lack of public documentation of who is lobbying whom, with what resources, and for what purpose. Others included failure to control the “revolving door” of staff moving between government institutions and private enterprises.

Federal:

Florida Mailman Lands a Gyrocopter on Capitol Lawn, Hoping to Send a Message
Washington Post – Mike DeBonis and Marc Fisher | Published: 4/15/2015

A postal worker from Florida delivering a protest message to Congress landed a lightweight gyrocopter on the West Lawn of the Capitol. Doug Hughes was taken into custody, with possible charges pending. He guided his aircraft at low speed through protected airspace and landed it on Congress’s front lawn to raise awareness about the amount of money spent on elections. “I have no intention of hurting anyone,” Hughes wrote on his website. The U.S. Secret Service denied anyone had tipped off its Tampa field office to Hughes’s intentions. Air defense systems did not detect the copter as it entered restricted airspace above Washington, D.C. No one tried to stop the gyrocopter.

Hillary Clinton’s Goal: Keep Bill Clinton happy, involved
Politico – Annie Karni | Published: 4/13/2015

When Hillary Clinton ran for president in 2008, her campaign staff was intimidated by her husband’s star power, concerned that she would be seen only in relation to him. Bill Clinton’s role during that campaign was an ongoing frustration for him and his team. The feeling within his inner circle, sources said, was that if he had been allowed to have a bigger say in strategy from the beginning, the campaign would not have ended up where it did. Now, after four years as secretary of state, Hillary Clinton is more firmly established as independent figure. Her new team has more confidence that she will be seen by voters as her own woman, with an identity separate from her husband. Thus they will not be afraid to place him in the spotlight when the time is right, while taking full advantage of his skills as a strategist behind the scenes.

In Accepting Bitcoin, Rand Paul Raises Money and Questions
New York Times – Eric Lichtblau | Published: 4/9/2015

In announcing his candidacy for president, U.S. Sen. Rand Paul waded into new waters when he said he would accept campaign contributions in Bitcoins, a largely untraceable virtual currency, in amounts up to $100. While some state and federal candidates in California, Colorado, New Hampshire, and elsewhere have started accepting Bitcoins, Paul is the first presidential candidate to do so. The novelty of the payment method is likely to help Paul highlight his edgy appeal to other libertarians, tech-savvy voters, young people, and others who favor Bitcoin. But it also raises questions about whether illegal contributions could make their way into campaigns more easily.

From the States and Municipalities:

Arizona – Gov. Doug Ducey Signs Elections-Related Measures
Arizona Capitol Times – Bob Christie (Associated Press) | Published: 4/14/2015

Arizona Gov. Doug Ducey signed a series of bills into law that address campaign finance, voter initiatives, third parties, and political committees. House Bill 2415 allows candidates to take up to $6,250 from an individual donor per election cycle, up from $5,000. House Bill 2649 modifies the definition of “political committee.” State Elections Director Eric Spencer said he crafted the legislation to specify that groups only need register as a political committee if they are organized for the purpose of affecting elections.

Missouri – Though Petition Seeks His Ouster, Ferguson Mayor Says He Is Best Leader for City
New York Times – John Eligon | Published: 4/12/2015

Ever since a white Ferguson police officer fatally shot an unarmed black teenager eight months ago, the city’s mayor, James Knowles, has been thrust into the spotlight in a national debate over race, class, and law enforcement. Among some activists who have taken to the streets, Knowles is viewed as a tone-deaf public official who allowed a racist and corrupt government to operate under his nose. Knowles has defended himself by saying that concerns about racial bias had not been raised on his watch as a public servant, and now that big problems had been laid bare, he was the person best qualified to help the city usher in vital reforms. But that is not enough for a handful of residents who, with support from outside groups, are trying to have Knowles recalled.

Montana – Legislature Clears Campaign Finance Bill; Headed to Governor
The Missoulian; Associated Press – | Published: 4/15/2015

Montana lawmakers gave final approval to a bill requiring more disclosure for so-called dark money spending. Under Senate Bill 289, certain groups would be required to publicize reports on political donations and expenditures if they spend money supporting or opposing candidates or ballot issues. The measure aims to shed light on anonymous money that began flowing into elections after the U.S. Supreme Court’s Citizens United ruling.

Nevada – Bill to Toughen Nevada Campaign Finance Rules Clears Senate
Las Vegas Review-Journal – Sandra Chereb | Published: 4/9/2015

The Nevada Senate passed legislation that would bar lawmakers from accepting gifts from lobbyists and would require candidates file more frequent campaign finance reports. Senate Bill 307, which now goes to the Assembly, also would require lobbyists to report any expenditures made to lawmakers for educational trips, informational meetings, or events, though they would not constitute a gift or political contribution. The bill would require candidates to file campaign finance reports more than twice as often as they do now.

New York – Dean Skelos, New York Senate Leader, and His Son Are Said to Be Focus of Corruption Inquiry
New York Times – William Rashbaum, Susanne Craig, and Thomas Kaplan | Published: 4/15/2015

The New York Times reported a federal grand jury is considering evidence in a possible case against New York Senate Majority Leader Dean Skelos and his son. The focus is on the business dealings of Adam Skelos, including his hiring by an Arizona company that won a local government contract in New York although it was not the low bidder, and a $20,000 signing bonus he received from a title insurance company that never employed him. Investigators are trying to determine whether the elder Skelos used his political influence to help the company, AbTech Industries, which won a $12 million storm-water treatment contract from Nassau County, the senator’s home district.

Rhode Island – Lawmaker McKiernan Allowed to Work with Lobbyists under R.I. Ethics Code, Commission Says
Providence Journal – Katherine Gregg | Published: 4/14/2015

The Rhode Island Ethics Commission said ethics rules do not prohibit state Rep. Daniel McKiernan from forming a law partnership with two other attorneys who are registered lobbyists. The commission noted the code generally allows public officials to enter into most private business associations. It then limits their ability to use their office to benefit themselves or their partners by requiring them to not participate in matters that would financially affect the business. The ethics panel lost its jurisdiction over the General Assembly following a 2009 state Supreme Court decision.

Tennessee – Tennessee House Votes Bible as Official State Book
The Tennessean – Dave Boucher | Published: 4/15/2015

The state House passed a bill to make the Bible the official book of Tennessee, despite opposition from Republican leaders and an attorney general’s opinion that the measure would violate the state and federal constitutions. Rep. Jerry Sexton, a former pastor, argued his proposal reflects the Bible’s historical, cultural, and economic impact in Tennessee. But several opponents raised concerns about putting the Bible on par with other more innocuous state symbols like the official salamander, tree, and beverage. The measure would need to be approved by the Senate before heading to the desk of Gov. Bill Haslam, who opposes it.

Texas – Lawmakers in No Rush to Disclose Wining and Dining
Texas Tribune – Jay Root | Published: 4/15/2015

Two bills aimed at requiring disclosure of lobbyist spending on Texas lawmakers and officials are on the verge of expiring in the Senate State Affairs Committee, according to the sponsor of the measures. Sen. Kirk Watson said he has been told not to expect even a public hearing on the bills, let alone a committee vote. Technically, under current law, a lobbyist who spends more than $114 on any one state official has to report the name of the person who is being entertained with food and drink. But that almost never happens. Watson wants to reduce the reporting threshold to $50, and he would require a detailed disclosure even if multiple lobbyists banded together to get around that lower limit.

Utah – Gay Rights, Religious Rights and a Compromise in an Unlikely Place: Utah
Washington Post – Niraj Chokshi | Published: 4/12/2015

A federal judge in 2013 struck down Utah’s ban on same-sex marriage, giving a lift to activists who had been pushing the state to adopt legislation protecting gay men and lesbians against discrimination in areas such as housing and employment. And as the question of same-sex marriage worked its way through the courts, ultimately winning a date before the U.S. Supreme Court, the Church of Jesus Christ of Latter-day Saints grew eager to reach an amicable compromise on gay and religious rights. It was determined to avoid what church officials saw as a polarized debate in several other states. Eight days after a compromise bill on the issue was introduced, it was signed into law with support from the gay rights group Equality Utah, the American Civil Liberties Union of Utah, and the church, uniquely influential in a state where about three in five residents are Mormon.

Virginia – Virginia General Assembly Vote on Gifts Must Wait until Friday
Roanoke Times – Markus Schmidt and Jim Nolan (Richmond Times-Dispatch) | Published: 4/15/2015

Virginia lawmakers delayed a vote on ethics reform legislation over concerns the measure could be interpreted as putting a $100 lifetime limit on gifts to public officials from lobbyists and others who have financial interests with the state. The General Assembly instead decided to reconvene on April 17 to clarify that the $100 gift limit was per year. Legislators were expected to go along with that change as well as one intended to make it clear they cannot accept trips to widely attended events.

West Virginia – Ethics Commission Grapples with Trinkets Ban
Charleston Gazette – Eric Eyre | Published: 4/9/2015

The West Virginia Ethics Commission will refine its guidance for a soon-to-be enacted law that prohibits elected officials from using public funds to feature their name or likeness on specific items. House Bill 2457 prevents “public officials, their agents or anyone on public payroll” from using their name or likeness on any publicly owned vehicles, in advertising, or on trinkets – small items such as magnets and cups. Commissioners said there needs to be clarification on are what exactly a trinket is and what type of advertising is prohibited.

Jim Sedor State and Federal Communications produces a weekly summary of national news, offering more than 60 articles per week focused on ethics, lobbying, and campaign finance.

April 16, 2015 • Written by Jonathan Spontarelli

Virginia General Assembly Will Reconvene Friday for Ethics Bill Vote

The General Assembly reconvened Wednesday to review several proposed legislative amendments offered by Gov. Terry McAuliffe, including changes to the ethics reform bill. The bill, as sent to the governor, changes the lobbyist gift limit from $250 per year from […]

April 16, 2015 • Written by Jim Sedor

Thursday News Roundup

Lobbying “Europe at Risk of Corruption from Lobbying – Report” by Damian Grammaticas for BBC “Lawmakers in No Rush to Disclose Wining and Dining” by Jay Root for Texas Tribune Campaign Finance “REBNY Members Gave a Tenth of all N.Y. […]

April 15, 2015 • Written by Jim Sedor

Wednesday Government Relations News

Lobbying “Pillow Talk Tests Ethics When K Street Marries Capitol Hill” by Eliza Newlin Carney for Roll Call “Ex-Lawmakers Swing through the Revolving Door” by Fredreka Schouten for USA Today Rhode Island: “Lawmaker McKiernan Allowed to Work with Lobbyists under […]

April 14, 2015 • Written by Jonathan Spontarelli

Ask the Experts – When Is Federal Registration Warranted?

Q. Our organization is under the impression that we don’t have to register as lobbyists at the federal level if we keep our lobbying activity isolated to our internal employees. I don’t think this is accurate. Can you let me […]

Q. Our organization is under the impression that we don’t have to register as lobbyists at the federal level if we keep our lobbying activity isolated to our internal employees. I don’t think this is accurate. Can you let me know the registration requirement for federal lobbying?

A. You are correct to be skeptical of this viewpoint. Keeping lobbying activity isolated to in-house personnel does not impact the need to register. Registration at the federal level is based on three criteria. All three must be met in order to warrant registration, or, stated differently, registration is required when all three criteria are met. The criteria are:

An organization spends or is expected to spend at least $12,500 on lobbying activity during a quarterly period;
An organization has at least one employee who spends 20 percent of his or her time engaged in lobbying activity; and
That same 20 percent employee makes more than one lobbying contact.

When considering whether the monetary threshold has been met, all expenses must be considered, including, compensation and reimbursed expenses associated with lobbying activities of all employees, overhead, payments to outside lobbyists, and the portion of any dues paid to outside membership organizations that are allocated toward lobbying. Likewise, when determining whether an individual employee meets the 20 percent standard, all time engaged in any activity that is intended to support lobbying contacts must be considered including background and preparatory work, research, strategy sessions and conversations.

Once your organization meets all three thresholds, registration with the House and Senate is required within 45 days. As a federal registrant, quarterly activity reporting is required as well as semiannual contribution reporting.

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

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

April 14, 2015 • Written by Jim Sedor

Tuesday Lobbying and Campaign Finance News Update

Lobbying “Suddenly, ‘Schumerland’ Is the Place to Be” by Megan Wilson for The Hill Hawaii: “Tobacco-Free Coalition Cleared on Lobbying Charges” by Nancy Cook Lauer for West Hawaii Today Texas: “Local Government, School Lobbying in Ethics Crosshairs” by Jay Root […]

April 13, 2015 • Written by Allyson Smith

Our April Photo Scrapbook

April 13, 2015 • Written by Jonathan Spontarelli

We Are with You at All Times

Last month at the Public Affairs Council PAC Conference someone came up to me and was surprised our website could be viewed on an iPhone. Well, I guess we have not done a good job of getting the good word […]

April 13, 2015 • Written by Jim Sedor

Monday News Roundup

Lobbying Nevada: “Bill to Toughen Nevada Campaign Finance Rules Clears Senate” by Sandra Chereb for Las Vegas Review-Journal New York: “Avella Proposes Lobbying Ban for Political Consultants” by Josefa Velasquez for Capital New York Campaign Finance “In Accepting Bitcoin, Rand […]

April 10, 2015 • Written by Jonathan Spontarelli

News You Can Use Digest – April 10, 2015

National: This Conservative Group is Tired of Being Accused of Climate Denial – and Is Fighting Back Washington Post – Tom Hamburger, Joby Warrick, and Chris Mooney | Published: 4/5/2015 The American Legislative Exchange Council (ALEC), the conservative partnership of state […]

National:

This Conservative Group is Tired of Being Accused of Climate Denial – and Is Fighting Back
Washington Post – Tom Hamburger, Joby Warrick, and Chris Mooney | Published: 4/5/2015

The American Legislative Exchange Council (ALEC), the conservative partnership of state lawmakers and corporations, is threatening defamation lawsuits against activists who say or suggest the group denies global warming. ALEC recently sent letters to Common Cause and the League of Conservation Voters, asking them to “cease making false statements” and “remove all false or misleading material.” Both organizations have said ALEC, through the policies it lobbies for in states, denies the scientific consensus that humans are significantly changing the climate. They said they would not follow ALEC’s demands. ALEC, among other policies, encourages states to fight regulations and laws meant to combat climate change, like the Environmental Protection Agency’s carbon rules for power.

Federal:

Comcast Recruits Its Beneficiaries to Lobby for Time Warner Deal
New York Times – Eric Lipton | Published: 4/5/2015

Comcast, the media conglomerate long known for its aggressive lobbying operation, has enlisted a vast network of allies to press federal regulators to approve its proposed $45 billion takeover of Time Warner Cable. Letters to Congress supporting the transaction and praising Comcast have come from the Houston Area Urban League and the Dan Marino Foundation in Florida, among others. The argument for the merger has been reinforced by academic papers from groups like the International Center for Law and Economics. More endorsements have come in from elected officials like Mississippi Gov. Phil Bryant. But there is a common element to dozens of these appeals: the senders received money from Comcast in recent years, either as a charitable donation, corporate support, or a political contribution.

K St. Firms on Edge about Hacking Threat
The Hill – Elise Viebeck | Published: 4/8/2015

Fearing a data breach, public policy shops on K Street are scrambling to lock down their networks against intrusions by hackers, cyber criminals, and foreign governments. Some firms have begun to encrypt their emails and undergo annual security audits in hopes of avoiding an attack that could tarnish their reputations and send clients fleeing to competitors. The pursuit of better data security is intensifying at a time when Chinese and Russian hackers are targeting Washington with increasingly sophisticated online attacks. Law, lobby, and consulting firms are often privy to sensitive information from their corporate clients, making them appealing targets. But while some firms are focused on strengthening their cyber defenses, experts say progress across the industry is uneven.

Menendez Indictment Marks First Big Corruption Case Involving a Super PAC
Washington Post – Matea Gold | Published: 4/2/2015

The case against U.S. Sen. Robert Menendez is the first time that super PAC donations have figured prominently as evidence of a political corruption scheme, renewing questions about how independently such groups operate. The indictment. The indictment against Menendez and Dr. Salomon Melgen hinges in part on $600,000 that Melgen gave to the Senate Majority PAC, a Democratic super PAC, earmarked to support Menendez’s 2012 re-election bid. The Justice Department argues the donations were among the things of value Melgen offered Menendez so the senator would use his position to help Melgen’s businesses. The case illustrates how super PACs, which can accept unlimited contributions and are supposed to be walled-off from the candidates they support, are viewed by donors as vehicles to ingratiate themselves with politicians.

Network of ‘Super PACs’ Says That It Has Raised $31 Million for Ted Cruz Bid
New York Times – Nicholas Confessore | Published: 4/8/2015

A set of newly formed super PACs backing U.S. Sen. Ted Cruz for president expects to collect more than $31 million in contributions in one week. Although super-PACs have radically changed the pace at which committees backing presidential candidates can raise money, the Cruz haul is remarkable. There are no known cases in which an operation backing a White House hopeful has collected this much money in such a short period of time.

From the States and Municipalities:

California – California Lawmakers’ Campaign Debt Piled High in 2014
Sacramento Bee – Jim Miller | Published: 4/7/2015

Many California lawmakers and unsuccessful candidates continue to live with reminders of costly campaigns. Lawmakers reported about $3.7 million in unpaid bills and personal loans from last November’s elections. Debt retirement fundraisers around the Capitol have been common in recent weeks. Yet such fundraising has long troubled campaign finance watchers. “When you’re raising the money for yourself, it’s going into your own pocket – you’re more grateful to the donor,” said Robert Stern, the former top attorney at the Fair Political Practices Commission who helped write the Political Reform Act.

Florida – When Leaders Became Lobbyists
InsuranceNewsNet.org – Jason Garcia | Published: 4/5/2015

Since 2006, more than two dozen former lawmakers in Florida have made the jump to lobbying, about one of every eight who have left the Legislature over the last five election cycles. The list includes two former House Speakers (Dean Cannon and Larry Cretul) and two former Senate presidents (Mike Haridopolos and Ken Pruitt). In some respects, the transition into lobbying is a logical extension of the skills that legislators need to advance into leadership positions in the first place. Once in a top spot, legislative leaders must be able to understand and work on a broad range of public policy issues and cultivate, maintain, and balance relationships with all manner of businesses and advocacy groups.

Illinois – Chicago Waiting to See if Runoff Truly Has Humbled Rahm Emanuel
New York Times – Monica Davey | Published: 4/8/2015

Mayor Rahm Emanuel defeated challenger Jesus Garcia on April 7, capturing a second term in Chicago’s first-ever runoff election. Yet the fallout for Emanuel from the past six weeks, a period of frenetic campaigning and humbling public self-examination, will be lasting. A tangible bloc of dissent has loudly made its case in a city where Emanuel and the mayors before him had often governed with little effective opposition and most council members in lock step. Even given a decisive margin of victory, the episode has raised a sense of vulnerability around Emmanuel’s political career, and an expectation from some here that his second term in City Hall may look different, in style and perhaps substance, from the first.

Missouri – Missouri House Passes Lobbyist Gift Cap, Cooling Off Period
Kansas City Star – Jason Hancock | Published: 4/2/2015

The Missouri House passed legislation that would cap lobbyist gifts at $25 and ban lawmakers from becoming lobbyists for at least one year after leaving office. Those two provisions differ from the version passed by the state Senate earlier this year, meaning differences have to be worked out before it could be sent to the governor. Missouri is currently the only state with the no caps on lobbyist gifts, no limits on campaign contributions, and no “cooling-off” period for lawmakers.

Missouri – Suicides by Missouri Politicians Raise Questions about State Ethics
KSMU – Frank Morris | Published: 4/9/2015

In February, state Auditor Tom Schweich, a leading candidate for the Republican Party’s nomination for governor, shot himself. Then in March, his press secretary, Spence Jackson, took his own life. The tragedies have sparked fresh scrutiny of Missouri’s increasingly bruising political system. Friends said Schweich was distraught over a coordinated assault from Republicans colleagues backing his chief primary opponent. With voting still more than a year away, they had already launched an attack ad, in the style of the Netflix series House of Cards. Former U.S. Sen. Jack Danforth said Missouri politics has devolved into an arena where ruthless operatives, financed by a wealthy few, battle for power.

New Jersey – Indictments May Be Near in George Washington Bridge Scandal
New York Times – Kate Zernike | Published: 4/8/2015

The New York Times reported that indictments may be coming soon in the investigation into improper lane closures at the George Washington Bridge that has also led to questions about conflicts-of-interest possibly involving Gov. Chris Christie and the Port Authority of New York and New Jersey. The probe was launched a few months after three lanes were closed to the bridge in 2013, causing gridlock in Fort Lee. Emails revealed the lanes were shut down on the orders of a Christie aide. Some believe the lane closures were retribution for the failure of Fort Lee Mayor Mark Sokolich to endorse Christie’s bid for re-election. The Times reported federal prosecutors may bring indictments under a statute that makes it a crime to use the bridge for something other than it intended purpose.

New York – Cuomo Expands Lobbying Oversight to Localities
Capital New York – Jimmy Vielkind | Published: 4/3/2015

The new ethics laws approved in New York as part of the budget deal greatly expand state oversight of municipal lobbying. New York’s lobbying law requires anyone who spends more than $5,000 in an attempt to influence any local law or ordinance, or any pending procurement action, to register its activities with the Joint Commission on Public Ethics. The law had applied to government entities with more than 50,000 people; that threshold was decreased to 5,000 people and was expanded to include school districts of any size. Experts said the onus of disclosure is on the person or company doing the lobbying.

Utah – Tribe’s Infighting Offers Glimpse into Redskins Foundation’s Tactics
Washington Post – John Woodrow Cox | Published: 4/2/2015

A Utah tribal leader was ousted from office for accepting gifts from the Washington Redskins, which council members say wrongly linked their tribe to the National Football League team’s divisive name. Members of the council of the Paiute Indian Tribe said they voted unanimously to remove Chairperson Gari Lafferty, who was accused of misconduct and ethical violations for taking an autographed football and a trip to Washington to attend a game last year. Lafferty said the tribe does not have an official position on the name, but she does not have a personal problem with it. She said the allegations are more related to her leadership style.

Virginia – Norment Won’t Discuss Lobbyist Relationship
The Daily Press – Travis Fain | Published: 4/6/2015

Virginia Senate Majority Leader Tommy Norment acknowledged seeing a lobbyist “personally” in a response to a state bar complaint lodged against him. A pair of Senate Republicans said they have no reason to believe Norment pushed legislation one way or another based on a relationship with a lobbyist. Nothing in Senate rules forbids a physical relationship with a lobbyist; neither do state ethics rules. Adultery, though, is a misdemeanor under Virginia law. During his career, Sen. John Watkins said he has heard of “maybe a dozen” relationships between legislators and lobbyists, staffers, or state agency officials. “From time to time, yeah, it happens – we’re all human beings,” said Watkins.

Jim Sedor State and Federal Communications produces a weekly summary of national news, offering more than 60 articles per week focused on ethics, lobbying, and campaign finance.

April 8, 2015 • Written by Jim Sedor

Wednesday Government Relations News

Lobbying “Comcast Recruits Its Beneficiaries to Lobby for Time Warner Deal” by Eric Lipton for New York Times Florida: “Senate Push to Expand Lobbyist Registration to Special Districts like Broward Health” by Dan Christensen for FloridaBulldog.org Florida: “Citizen Lobbyists Endure […]

April 7, 2015 • Written by Allyson Smith

Tuesday Lobbying and Campaign Finance News Update

Lobbying “Last-minute lobbying threatens $200B Medicare package” by Sarah Ferris in The Hill. Illinois: “Chicago Elections Chief Got Lobbying Contracts from Rahm Emanuel’s Administration” by Matthew Cunningham-Cook and David Sirota in International Business Times. Campaign Finance “Gary Hart: Billion-dollar Clinton […]

April 6, 2015 • Written by Jim Sedor

Monday News Roundup

Lobbying “Trucking and Rail Industries Turn State Troopers into Unwitting Lobbyists” by Eric Lipton for New York Times Florida: “In Sunshine State, Big Energy Blocks Solar Power” by Eric Barton for Florida Center for Investigative Reporting Missouri: “Missouri House Passes […]

April 3, 2015 • Written by Jonathan Spontarelli

News You Can Use Digest – April 3, 2015

National: The Political Kingmaker Nobody Knows Center for Public Integrity – Ben Wieder | Published: 3/26/2015 Manoj Bhargava and several of his Michigan-based companies have given at least $5.3 million to candidates for state office and political groups around the country […]

National:

The Political Kingmaker Nobody Knows
Center for Public Integrity – Ben Wieder | Published: 3/26/2015

Manoj Bhargava and several of his Michigan-based companies have given at least $5.3 million to candidates for state office and political groups around the country since 2009. But Bhargava remains a mystery man, even to many of the people who are benefiting from his largesse. Such donors are typically well known and aggressively courted by politicians who need their favor and funding to pay for campaigns. Yet Bhargava avoids the spotlight, both in politics and life, and he has gone to great lengths to obscure his political activity, even as his signature product – 5-hour Energy – draws more scrutiny from some of the same politicians he is supporting.

Federal:

Rapper-Backed Group Illustrates Blind Spot in Political Transparency
Center for Public Integrity – Michael Beckel | Published: 3/31/2015

Super PACs are supposed to be transparent political committees, publicly disclosing who funds them. But limited liability companies (LLCs) can serve as vehicles for large donors to contribute to the groups, many of which are aligned with specific political candidates, while hiding their identities from voters. Some states, such as Delaware and Wyoming, do not require LLCs to identify the living, breathing people who own or control them. Instead, they need to provide only the name of a “registered agent,” which is often a company that exists only to serve as the registered agents for LLCs. New rules for LLCs have not been discussed at the FEC.

Sen. Robert Menendez Indicted
Washington Post – Paul Kane and Carol Leonnig | Published: 4/1/2015

U.S. Sen. Robert Menendez (D-N.J.) was indicted on corruption charges, accused of using his office to improperly benefit a Florida ophthalmologist and political donor. Menendez faces 14 counts, including bribery and conspiracy, over his ties to Dr. Salomon Melgen, who was also was charged in the case. The senator has acknowledged taking actions that could benefit Melgen, among them contacting U.S. health agencies to ask about billing practices and policies. He has repeatedly denied any wrongdoing and suggested any gifts he received from Melgen were part of a close friendship. Melgen came under renewed scrutiny when government data last year showed he had received more in Medicare reimbursements in 2012 than any other doctor in the country.

From the States and Municipalities:

Arkansas – Senators Approve Improper-Gifts Bill
Arkansas Online – Michael Wickline ands Spencer Williams | Published: 4/2/2015

State officials who accept improper gifts from lobbyists would be able to avoid sanctions if they returned the gifts within 30 days, under legislation approved by the Arkansas Senate. If the prohibited gift were not returnable, the state official could pay the donor “consideration that is equal to or greater than the value of the gift” within those 30 days without penalty. Senate Bill 967 also would limit who can dine when an event is held for a legislative committee. Under the bill, lawmakers who do not serve on that committee would be prohibited from accepting free food and drinks. Senate Bill 967 amends state ethics laws and Amendment 94 to the Arkansas Constitution and requires a two-thirds vote for approval in both chambers.

Indiana – Indiana Law Draws Republican White House Hopefuls into the Culture Wars
Washington Post – Philip Rucker and Robert Costa | Published: 3/31/2015

Most top Republican presidential hopefuls have moved in lock step to support Indiana Gov. Mike Pence and the state’s Religious Freedom Restoration Act, which has prompted protests and national calls for boycotts by major corporations. The agreement among the likely GOP candidates illustrates the enduring power of social conservatives in early-voting states such as Iowa and South Carolina, which will help determine who emerges as the party’s nominee next year. But the position puts the field out of step with a growing national consensus on gay rights, handing Democrats a way to portray Republicans as intolerant and insensitive. Some Republicans also fear Indiana is only the first in a series of brush fires that could engulf the party as it struggles to adapt to the nation’s changing demographics and social mores.

Minnesota – Leap from Legislator to Lobbyist a Short One in Minnesota
St. Paul Pioneer Press – Rachel Stassen-Berger and Dan Bauman | Published: 3/28/2015

While many states and the federal government mandate a waiting period for departing lawmakers to become lobbyists, in Minnesota that is not the case. A St. Paul Pioneer Press analysis of registered lobbyists found since 2002 alone, at least five dozen legislators have registered to lobby their former colleagues after their terms expired. Some wait years after leaving the Legislature before becoming lobbyists; others delay only a few days. And a few, like former Sen. Dick Day, left their terms mid-session to lobby for issues on which they had previously voted.

New Mexico – How a Reform Bill Loses Its Teeth in 60 Days
KRGW – Michael Sol Warren (New Mexico In Depth) | Published: 3/27/2015

New Mexico lawmakers debated a bill this year that would have reveal to the public how lobbyists go about influencing legislators. In its original form, House Bill 155 required lobbyists to report a detailed list of expenses and which issues they are employed to work on, and organizations that employ lobbyists would have had to file a separate expense report. The version that passed only requires the secretary of state to create a searchable database of lobbyists. So how did the bill go from its original form, with so many requirements, to the watered-down proposal that now awaits Gov. Susana Martinez’s signature?

New York – Loopholes Seen in New Ethics Disclosure Rules for New York Legislators
New York Times – Susanne Craig and Thomas Kaplan | Published: 3/31/2015

New York lawmakers approved a $142 billion state budget that enacts new legislative disclosure rules intended to address corruption in Albany. But watchdogs said the fine print in the agreement suggests much will remain in the shadows. Five good-government groups, which have been pushing for broad changes to the state’s ethics laws, denounced the proposals as “incremental reform” and said it did not address a loophole that allowed corporations to give large campaign donations as smaller gifts that disguise the source of the money. They also criticized lawmakers for not releasing details of the reform until just hours before they were set to vote, leaving little time for public discussion.

Ohio – Political Strings Attached to Ohio College Scholarships?
Columbus Dispatch – Collin Binkley and Jim Siegel | Published: 3/30/2015

The Ohio Association of Career Colleges and Schools, a lobbying group that represents for-profit schools statewide, requires students to get a state lawmaker’s signature to be considered for its Legislative Scholarship program. The awards are valued at up to $44,000 each. Association leaders said the goal is to promote civic engagement by putting students in touch with elected officials. But critics see the program as a veiled lobbying effort intended to gain favor with legislators. It allows lawmakers to take credit for helping students even though the money is from the association. Others worry it could be a foothold for corruption. Two other states have banned or reformed similar programs after lawmakers awarded scholarships to family members, friends, and political backers.

Pennsylvania – AG Kane Quashed Subpoenas in Casino Investigation, Sources Say
Philadelphia Inquirer – Craig McCoy and Angela Couloumbis | Published: 4/1/2015

Pennsylvania Attorney General Kathleen Kane reportedly undermined a corruption investigation against a former state gaming official, according to a Philadelphia Inquirer story. Anonymous sources said Kane revoked several subpoenas, including one involving former casino owner Louis DeNaples, shortly after taking office in 2013. The subpoenas were reportedly part of an investigation into the actions of Douglas Shiffer, former assistant counsel to the state Gaming Control Board. Shiffer allegedly shared information with DeNaples about a review of DeNaples’ casino license bid. The Inquirer reported Shiffer was hired to serve as general counsel for DeNaples’ Mount Airy Casino and Resort after DeNaples won the license. DeNaples contributed $25,000 to Kane’s campaign several months after the subpoenas were revoked, according to the report.

Texas – Austin’s Lobbying Rules Often Unheeded, Unenforced
Austin American-Statesman – Lilly Rockwell | Published: 3/28/2015

A long-overlooked section of Austin’s city code is murky on the definition of who must register as a lobbyist, which has resulted in the law being all but dismissed by some who advocate at City Hall. Watchdogs say the problem is no that lobbyists secretly shower city council members or staff with lavish meals or gifts, but that there is a lack of transparency about the level of influence some outside groups or individuals have. And by not registering as lobbyists, people with a financial stake in setting city policy are able to sit on boards and commissions.

Texas – Pressure-Packed City Council Vote Ends with Lobbyist Charged with Assault
KTRK – Ted Oberg and Trent Seibert | Published: 3/25/2015

The Houston City Council approved the bulk of $1.6 billion in airport concession contracts despite ongoing controversy about the fairness of the bidding process, including allegations that some winning companies crossed ethical lines. Many well-connected companies have been vying for the lucrative deals in what those at City Hall have dubbed “food fights.” That metaphor turned into an actual scuffle as one lobbyist pressed simple assault charges on another for shoving him in the hallway outside council chambers.

Utah – Mormon Church Lobbying in Utah’s Capitol – Hardball or Light Touch?
Salt Lake Tribune – Lee Davidson | Published: 3/29/2015

Former Utah Rep. Carl Wimmer caused an uproar by accusing the LDS Church of bullying Mormon lawmakers on such controversial topics as illegal immigration, alcohol, and the new law to protect gay and lesbian residents from workplace and housing discrimination. A couple of former legislators back Wimmer, who recently left the LDS Church to become an evangelical Christian. A far larger group of Mormon lawmakers say they have never experienced the kind of heavy-handed tactics described by Wimmer. In a state where more than 80 percent of legislators are Mormon, LDS positions can virtually assure passage of a bill or stop it in its tracks.

Virginia – McAuliffe Vows to Amend Ethics Bills to Close Loopholes
Washington Post – Laura Vozzella and Tom Jackman | Published: 3/27/2015

Virginia Gov. Terry McAuliffe said he is amending ethics legislation passed by the General Assembly to further limit gifts lawmakers can accept from lobbyists. Lawmakers this year passed bills that would limit each gift to $100. But they came under criticism for perceived loopholes, including the lack of a cap on the number of those $100 gifts. McAuliffe said his amendments include an aggregate cap of $100 annually per lobbyist or entity seeking a contract with the state, a policy he said his administration already follows. The governor said he decided not to push for an ethics commission, independent of the Legislature, that would have powers to audit and issue subpoenas. Lawmakers opposed that idea.

Wisconsin – Campaign Money Tests Wisconsin Justices’ Impartiality
New York Times – Monica Davey | Published: 3/27/2015

The contentious 2011 elections for the Wisconsin Supreme Court wound up costing $5.7 million, including about $4.3 million in so-called issue ads paid for by outside groups. In the coming weeks, that outside campaign spending may be at issue again as the justices consider whether an investigation can proceed into claims that Gov. Scott Walker’s campaign improperly coordinated the spending by conservative groups during campaigns to recall him. Adding to the debate over judicial partisanship is a ballot measure that would allow a majority of justices to select the chief justice, who for over a century has been chosen by seniority. Under a policy approved by the state Supreme Court in 2010, judges need not recuse themselves from a case “based solely” on an endorsement, campaign contribution, independent expenditure, or issue advocacy.

Jim Sedor State and Federal Communications produces a weekly summary of national news, offering more than 60 articles per week focused on ethics, lobbying, and campaign finance.

News You Can Use Digest – April 17, 2015

Virginia General Assembly Will Reconvene Friday for Ethics Bill Vote

Thursday News Roundup

Wednesday Government Relations News

Ask the Experts – When Is Federal Registration Warranted?

Tuesday Lobbying and Campaign Finance News Update

Our April Photo Scrapbook

We Are with You at All Times

Monday News Roundup

News You Can Use Digest – April 10, 2015

Wednesday Government Relations News

Tuesday Lobbying and Campaign Finance News Update

Monday News Roundup

News You Can Use Digest – April 3, 2015

Popular Categories

Sort by Month

Sort By State

Popular Categories

Sort by Month

Sort By State

Celebrating 30 years in business!