On February 13, the Texas Ethics Commission issued an advisory opinion concerning the requirements of lobbyists to disclose office holders or candidates compensating or reimbursing the lobbyist for services from political contributions.

In Ethics Advisory Opinion No. 515, the commission held that while a lobbyist must disclose in a registration the full name and address of a candidate or officeholder who uses political contributions to compensate or reimburse the lobbyist, he or she is not required to disclose compensation or reimbursement received by an entity for services rendered by someone other than the lobbyist or a person acting as an agent of the lobbyist.

Lobbyists must disclose the full name and address of a candidate or officeholder who uses political contributions to compensate or reimburse an entity that employs or hires the lobbyist to render services for the candidate or officeholder.

On February 6, the Federal Election Commission (FEC) published its Price Index Adjustments for Expenditure Limitations and Lobbyist Bundling Disclosure Threshold in the Federal Register. The lobbyist bundling disclosure threshold has increased to $17,300 for 2014 from $17,100 in 2013. This threshold amount is adjusted annually.

Federal law requires authorized committees of federal candidates, leadership PACs, and political party committees to disclose contributions bundled by lobbyists and lobbyists’ PACs.

The Chicago Board of Ethics recently posted two new publications on its website, both of which outline ethics restrictions for city officials.

The first addresses, among other things, general conflicts of interest, lobbying on behalf of others, financial interests in city contracts, financial disclosure requirements, gifts, revolving door provisions, and penalties for ethics violations.

The second addition is a publication delineating what city employees and officials may or may not do in terms of contracting with the city.

Both documents are intended to provide a basic understanding of ethics rules and are not deemed legal advice.

On Thursday, the Colorado Court of Appeals affirmed a lower court ruling striking down rules reducing or eliminating disclosure requirements for issue committees, political committees, and more than 500 political organizations. The rules, put forth by Secretary of State Scott Gessler in 2012, also capped penalties for failure to file major contributor reports in the days leading up to an election.

Challengers argued the rules were invalid because Gessler exceeded his authority by effectively amending the Colorado constitution and campaign finance laws passed by the General Assembly.

In addition to finding the rule changes invalid, the appeals court overturned Gessler’s 2012 rule narrowing the definition of “electioneering communications.”

Following the November 13, 2013 meeting, the Georgia Government Transparency and Campaign Finance Commission issued an order to deny lobbyist renewal for the calendar year of 2014 for each lobbyist with outstanding registration, supplemental registration, identification card, and/or badge fees.

The commission will also deny lobbyist renewal for each lobbyist with unpaid fines or unfiled disclosure reports.

The 2014 fees for the lobbyist identification badge ($20) and supplemental registration ($10) will remain unchanged from 2013 amounts.

On Wednesday, October 9, a three-judge federal appeals panel heard a challenge to Hawaii’s campaign finance law, paying specific attention to the ban on political contributions by state and county contractors and the spending threshold for triggering disclosure requirements.

Although no rulings have been made, the judges did appear skeptical regarding the constitutionality of the contribution ban on contractors passed by the Legislature in 2005.

National:

Private Lobbyists Get Public Pensions in 20 States

Politico; Associated Press –   | Published: 8/26/2013

Lobbyists in at least 20 states receive public pensions because they represent associations of counties, cities, and school boards. Legislatures granted them access decades ago on the premise that they serve governments and the public. But several states have started to question whether these organizations should qualify for such benefits, since they are private entities in most respects.

From the States and Municipalities:

California – San Diego Mayor Bob Filner Resigns, Faces Criminal Investigation

Los Angeles Times – Tony Perry and Richard Marosi | Published: 8/23/2013

San Diego Mayor Bob Filner resigned under a barrage of sexual harassment complaints, offering an apology to his accusers while still denying the allegations. In exchange for his resignation, the city will pay most of Filner’s legal fees. It will also cover any punitive damages against him in any lawsuit. A spokesperson for the state attorney general’s office confirmed a criminal investigation into Filner’s treatment of women is underway.

California – State Panel Changes Disclosure Rules for Public Officials’ Travel

Los Angeles Times – Patrick McGreevy | Published: 8/22/2013

The California Fair Political Practices Commission (FPPC) revised gift rules involving travel by elected officials. “[The FPPC] can only require disclosure or impose restrictions if there is a personal benefit to the individual,” said agency Chairperson Ann Ravel.

Connecticut – Former Donovan Aide Gets 38 Months in Campaign Scandal

Hartford Courant – Dave Altimari | Published: 8/27/2013

Robert Braddock, the ex-campaign finance director to former Connecticut House Speaker Chris Donovan’s unsuccessful congressional campaign, was sentenced to more than three years in prison. Braddock and seven other co-defendants who pleaded guilty were involved in a scheme that funneled nearly $28,000 to Donovan’s campaign through straw donors in an effort to get Donovan to defeat proposed legislation to raise taxes on roll-your-own cigarette shops.

Florida – Lobbyist Fee Reports Are Just another Type of Competition

Orlando Sentinel – Aaron Deslatte | Published: 8/23/2013

The large paydays reported by some Florida lobbying firms are causing many to cry foul on the state’s disclosure law. The behind-the-scenes criticism is focused on the law’s requirements mandating only that lobbyist detail what they are paid to ply their trade in $10,000 ranges. The reports have never been subjected to audits. Many complain other lobbyists engage in financial gamesmanship in order to boost their status or draw new clients.

Florida – Texas-Sized B-Day Party for Scott Aide Hosted by Lobbyist and Wife

Tampa Bay Times – Michael Van Sickler | Published: 8/27/2013

Florida Gov. Rick Scott’s chief of staff, Adam Hollingsworth attended a birthday party for another top gubernatorial staffer at the home of Daniel and Monica Russell. Daniel Russell is a registered lobbyist for Northrop Grumman, which has been in talks with the state about tax incentives for the company. The office handling those negotiations is the Department of Economic Opportunity, where Monica Russell is the spokesperson.

Illinois – DuPage County Board Loosens Cap on Campaign Contributions

Chicago Daily Herald – Robert Sanchez | Published: 8/28/2013

In an attempt to align itself with Illinois’ campaign finance law, the DuPage County Board voted to raise the county donation limit from $1,000 to the state standard of $5,300. The cap had applied to companies and consulting firms, as well as officers and owners of those entities, as well as to any individual appointed or applying for a position on a board, commission, authority, task force, or advisory committee.

Missouri – Klahr Chosen as Director of Mo. Ethics Commission

Miami Herald; Associated Press –   | Published: 8/27/2013

The Missouri Ethics Commission chose James Klahr to be the agency’s executive director beginning on September 13. He was a staff attorney for the state Senate and for Gov. Jay Nixon. Klahr replaces Julie Allen, who stepped down to become the elections director for the secretary of state’s office.

Missouri – Mo. Rep. LaFaver Arrested for Possessing Pot, Quits Democratic Campaign Role but Not House

Columbus Republic – David Lieb (Associated Press) | Published: 8/26/2013

A Missouri lawmaker who was arrested for possession of marijuana during a traffic stop said he would not resign. State Rep. Jeremy LaFaver has, however, stepped down as chairperson of the Democratic Party’s 2014 campaign committee. During this past legislative session, LaFaver sponsored a bill that would have reduced the penalties for marijuana possession; it did not pass.

Nevada – Emails Show How Political Advisers Trumped Staff in Winning Support for ‘More Cops’ Tax

Las Vegas Sun – Anjeanette Damon | Published: 8/27/2013

Before the 2013 legislative session began, Nevada Gov Brian Sandoval followed the advice of outside political advisors and decided to support a tax increase. An email exchange about the move offers a look into who holds sway at the governor’s office, including the role of the two lobbyists.

New York – Millions Sweeten the Casino Pot

Albany Times Union – James Odato | Published: 8/27/2013

The Seneca Indian Nation agreed to give David Flaum a $3 million “development fee” if a casino opens in Monroe County, and a contingency fee of up to $5 million if the tribe gets a state gaming compact by October 1. Lobbyists are banned from receiving contingency fees in New York. Flaum would have to register as a lobbyist if he begins appearing before government officials on behalf of the tribe, particularly for a gaming compact, and contract terms suggest the tribe might direct him to do so.

Ohio – Gov. John Kasich and Ohio Ethics Commission Linked by Political Contributions, Records Show

Cleveland Plain Dealer – Henry Gomez | Published: 8/23/2013

A Cleveland Plain Dealer analysis shows three of the five members of the Ohio Ethics Commission or their spouses have contributed to Gov. John Kasich’s campaigns over the years. Democrats see new relevance in these ties as they call for an ethics investigation of Kasich. The commission rejected a request to explore the governor’s involvement with Worthington Industries, a company that received state tax credits.

Ohio – OH Treasurer Crashes Twice, Makes No Staff Report

Miami Herald – Julie Carr Smyth (Associated Press) | Published: 8/27/2013

Ohio Treasurer Josh Mandel might have violated state and federal campaign laws by traveling across the state this year in a vehicle bought by his failed 2012 U.S. Senate campaign. The possible violation only came to light after a traffic accident in which the Jeep Grand Cherokee was totaled.

Texas – Texas Mayor, Brother, Dad Charged with Corruption

Kansas City Star; Associated Press –   | Published: 8/28/2013

The mayor of a small city in Texas and his brother, the president of the local school board, were charged in a public corruption case that prosecutors said maintained a stranglehold over local government business for years. Also arrested was Jose Vela, the pair’s father and a maintenance worker at the local high school. Prosecutors said he ran city government through his sons and a revolving door of city council and school board candidates recruited by his family.

Virginia – Lax Laws Lead to Cloudy View of Lobbyists’ Spending

The Virginian-Pilot – Julian Walker | Published: 8/29/2013

Lobbyists reported spending $15.9 million in Virginia from May 2012 to April 2013. But critics say it is an incomplete financial picture of all that goes into policy persuasion and legislative influence in a state with lax reporting standards and enforcement of lobbyist disclosures.

State and Federal Communications produces a weekly summary of national news, offering more than 80 articles per week focused on ethics, lobbying, and campaign finance.

News You Can Use is a news service provided at no charge only to clients of our online Executive Source Guides, or ALERTS™ consulting clients.

Montana Governor Steve Bullock has named a new commissioner of political practices, according to the Independent Record.

Jonathan Motl will begin service as the commissioner by June 10 to complete the final three years of a six-year term left vacant by prior unconfirmed appointees. A Senate confirmation hearing for the position will not be held until early 2015.

Governor Jay Inslee has signed a bill into law increasing disclosure in political advertising. Senate Bill 5258 was passed by the Washington State Legislature and delivered to the governor on April 23.

The bill requires a series of political advertisements supporting or opposing ballot measures sponsored by the same political committee, each of which is under $1,000, to include information on the advertisement’s top five contributors once the cumulative value of the advertisements reaches $1,000. Under the current law, information on the top five contributors is only required for individual advertisements in excess of $1,000.

This law will take effect on July 28, 2013, but with the first state elections not due to take place until 2014, we will probably not see how big of an impact this new disclosure requirement will have.

Leaders of corporations, unions, and other organizations responsible for independent political advertisements may have to be identified if a bill introduced in the U.S. Senate yesterday passes.

Senate Bill 791 was introduced jointly by Senators Ron Wyden (D-Ore.) and Lisa Murkowski (R-Alaska). The bi-partisan bill, called The Follow the Money Act of 2013, requires entities, regardless of tax status, to identity the funders of any political activity in which the entity engages.

An organization involved in political activity not regulated under the Federal Election Campaign Act will also be subject to a separate set of Internal Revenue Service penalties, including the possible loss of its federal tax exemption.

The Federal Election Commission will be required to replace quarterly reporting with a more frequent reporting schedule and will be required to disclose the information to the general public upon receipt.

Senator Wyden’s press release can be found here.

Video courtesy of Sen. Wyden’s YouTube channel.

Montana Governor Steve Bullock and Senator Jim Peterson announced a comprehensive campaign finance initiative for the state.

The Transparency, Reporting and Accountability in Campaigns and Elections (TRACE) Act was introduced today at a joint press conference in the governor’s office.

The governor said the provisions of the bill, to be introduced by Senator Peterson, include increasing disclosure by organizations without regard to the organization’s federal tax status, prohibiting direct corporate or union contributions to candidates, and increasing disclosure requirements by corporations making independent expenditures.

The TRACE Act also increases campaign contributions: per election cycle, a candidate for governor could accept up to $2,000 from a political committee or individual, a statewide candidate could accept up to $1,000, and all other candidates could accept up to $500. Additionally, the bill increases the fine for those violating election law and requires all major donors to incidental committees be identified through disclosure.

In his press release, Governor Bullock said, “This isn’t about winning or losing elections. This is about putting our democracy back in the sunlight where [it] belongs – back firmly in the hands of ‘we the people’.”

An argument put forth by the Massachusetts Secretary of State’s office requiring lobbyists to disclose every communication with public officials “makes absolutely no sense,” wrote Superior Court Judge Janet Sanders.

Secretary of State William Galvin’s office had argued it has the authority to interpret “all direct business associations with public officials” expansively and require the names of all officials with whom a lobbyist has communicated. In reaction, a lawsuit was brought against the Secretary of State’s office by the ACLU, AirStrategies, the Associated Industries of Massachusetts, Citizens for Juvenile Justice, Common Cause, and the Conservation Law Foundation.

According to the Boston Herald, the arguments in favor of the disclosure requirement were dismissed by the judge in her decision.

Federal:

K Street Flags Shortcomings of Lobbying Law

From the States and Municipalities:

Arizona

Judge: Listing of PAC contributors unconstitutional

California

California’s Campaign Finance Watchdog Agency Demands Names of Donors to Shadowy Arizona Group

California

Judge Rejects Former Bell Police Chief’s Bid to Double Pension

Florida

State Ethics Commission: David Rivera broke 11 ethics laws while serving in Florida Legislature

Georgia

Atlanta Region Sees Spike in Public Corruption Cases

Idaho

Idaho Sues to Force Disclosure of Secret Donations

Illinois

Appeals Court Allows Illinois Limits on Campaign Financing

Iowa

‘Donations’ to State Agency Let Landlords Avoid Charges

Kentucky

Ethics Panel Wants Lobbyists to Report Ad Spending

Montana

Supreme Court Won’t Block Montana Campaign Finance Law Ahead Of Elections

New Jersey

Infamous Federal Informant Solomon Dwek Is Sentenced to Six Years, Must Pay $22.8 Million

North Dakota

Campaigning Fargo Candidate Finds Body under Tree

Tennessee

With Registry’s Ruling, Burchett Case Closed

State and Federal Communications produces a weekly summary of national news, offering more than 80 articles per week focused on ethics, lobbying, and campaign finance.

News You Can Use is a news service provided at no charge only to clients of our online Executive Source Guides, or ALERTS™ consulting clients.

The United States Supreme Court has decided not to hear a case involving Maine’s political contribution disclosure, upholding the law. The National Organization for Marriage (NOM) had appealed to the country’s highest court after an appeals court ruled that Maine’s law regarding ballot issue committees is constitutional.

The law states that groups who spend more than $5,000 to influence ballot questions must register with the state ethics commission. Once registered, organizations must identify, in filed campaign finance reports, any donors who contributed more than $100.

The ethics commission, due to the ongoing legal battle, has not made a final determination on whether NOM is actually a ballot issue committee. The commission hopes to have a final answer on that issue in the coming months.