April 11, 2019 • Written by Jim Sedor

Thursday’s LobbyComply News Roundup

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 […]

April 10, 2019 • Written by Jim Sedor

Wednesday’s LobbyComply News Roundup

Campaign Finance National: “Democrats Are Cozying Up to Corporate Lobbyists Despite Purity Pledges” by Theodoric Meyer for Politico Arkansas: “Suit Challenges State’s Limit on Campaign-Donation Time” by Linda Satter for Arkansas Democrat-Gazette Maryland: “Anne Arundel Gets Green Light for Local […]

April 9, 2019 • Written by Jim Sedor

Tuesday’s LobbyComply News Roundup

Campaign Finance Wyoming: “Wyoming’s Campaign Finance Reforms Leave Several Holes for Dark Money Influence” by Nick Reynolds for Casper Star Tribune Ethics New York: “No Jail Time for Ex-Cuomo Confidant Todd Howe in Corruption Case” by Robert Gavin for Albany […]

April 8, 2019 • Written by Jim Sedor

Monday’s LobbyComply News Roundup

Campaign Finance National: “Courts Have No Say When FEC Wants to Ignore Alleged Wrongdoing” by Kenneth Doyle for Bloomberg Government Ethics California: “As Power of California Senate Leader Grows, So Does Her Spouse’s Consulting Business” by Liam Dillon for Los […]

April 5, 2019 • Written by Jonathan Spontarelli

News You Can Use Digest – April 5, 2019

National: What Is ALEC? ‘The Most Effective Organization’ for Conservatives, Says Newt Gingrich USA Today – Yvonne Wingett Sanchez and Rob O’Dell | Published: 4/4/2019 The American Legislative Exchange Council (ALEC) became the nation’s best-known so-called model bill factory over […]

National:

What Is ALEC? ‘The Most Effective Organization’ for Conservatives, Says Newt Gingrich
USA Today – Yvonne Wingett Sanchez and Rob O’Dell | Published: 4/4/2019

The American Legislative Exchange Council (ALEC) became the nation’s best-known so-called model bill factory over its four decades by providing more than fill-in-the-blank legislation. The industry-sponsored group has weathered controversy and flourished because it also offers conservative Republican elected officials a social network, access to campaign donors, and a blueprint for how to accelerate their political careers. The networking takes place at ALEC’s annual meetings, where the group fetes and entertains lawmakers and their families. Relationships are forged over drinks and dinners, where lawmakers sit alongside conservative luminaries and corporate chiefs. By the end of each ALEC conference, attendees leave motivated to evangelize for conservative policies and equipped with ready-made legislation.

Federal:

GAO: One-third of lobbying disclosures failed to include political contributions
The Hill – Alex Gangitano | Published: 3/29/2019

One-third of lobbyists’ disclosures do not include political contributions and one-fifth do not include previous jobs in government, a new Government Accountability Office (GAO) report finds. The GAO audited compliance with the Lobbying Disclosure Act, which requires a person to register as a lobbyist if lobbying activities constitute at least 20 percent of their time working for a client. The watchdog examined lobbying disclosure (LD-2) reports and political contribution (LD-203) reports filed during the third and fourth quarter of 2017 and the first and second quarter of 2018. It also conducted interviews with lobbyists for the study.

Some on Mueller’s Team Say Report Was More Damaging Than Barr Revealed
MSN – Nicholas Fandos, Michael Schmidt, and Mark Mazzetti (New York Times) | Published: 4/3/2019

Some members of special counsel Robert Mueller’s team have reportedly complained that the evidence they uncovered of obstruction of justice during their investigation was stronger than what U.S. Attorney General William Barr suggested. In his four-page letter to Congress, Barr wrote that Mueller did not uncover evidence to conclude the Trump campaign colluded with Moscow to influence the 2016 election. Barr added that Mueller did not make a definitive conclusion on whether Trump obstructed justice. But Barr and Deputy Attorney General Rod Rosenstein decided Mueller did not provide sufficient evidence of obstruction to pursue it. The summary noted Mueller did not exonerate the president on the obstruction matter. Some members of Mueller’s team felt Barr should have included more information from their own summaries of the probe.

From the States and Municipalities:

California: Judge Bars Former Ethics Panel Member from Running for L.A. City Council
Los Angeles Times – Emily Alpert Reyes | Published: 3/28/2019

A judge ruled that Former Los Angeles Ethics Commission member Serena Oberstein is barred from running for a city council seat that is up for grabs this summer. The legal battle revolved around a section of the City Charter that restricts ethics commissioners from running for any city office “concerning which the commission has made a decision during the term of the commissioner” – a ban that applies for two years after the end of their terms. In his ruling, Superior Court Judge James Chalfant wrote that voting to impose fines on two people who ran unsuccessfully in the past to represent Council District 12 made Oberstein ineligible to run for that seat, since “these decisions concern the very office for which Oberstein seeks election.”

Illinois: Lori Lightfoot Elected Chicago Mayor, Making Her the First African-American Woman to Lead the City
Chicago Tribune – Bill Ruthhart | Published: 4/2/2019

Former federal prosecutor Lori Lightfoot won a resounding victory to become both the first African-American woman and openly gay person elected mayor of Chicago. After waging a campaign focused on upending the vaunted Chicago political machine, Lightfoot dismantled one of its major cogs by dispatching Cook County Board President Toni Preckwinkle, whose candidacy had been hobbled in part by an anti-incumbent mood among voters and an ongoing federal corruption investigation at City Hall. Both self-styled progressives, Preckwinkle and Lightfoot did not disagree much on the issues. As a result, the race largely boiled down to change versus experience.

Indiana: Casino Boss Treated Holcomb to Private Flights with Lucrative Gambling Deal on the Line
Indianapolis Star – Kaitlin Lange and Tony Cook | Published: 3/28/2019

An Indiana casino magnate last year treated Gov. Eric Holcomb to two private-jet flights and directed six-figure sums to Holcomb’s biggest 2016 campaign donor, all while pushing for changes to the state’s gaming laws that would benefit his new business. Rod Ratcliff, chief Executive Officer of Spectacle Entertainment, flew Holcomb to meetings in Colorado and Arizona that were hosted by the source of that campaign money, the Republican Governors Association. The flights gave Ratcliff and his business partners hours of exclusive access to the governor, who will have final say over their plans to move two Gary casinos to more lucrative locations. One of the flights was just a day before Ratcliff announced plans to acquire those two casinos.

Kentucky: Lobbyists Can’t Donate to Candidates but Give Big to Parties – Especially the GOP
Louisville Courier Journal – Tom Loftus | Published: 4/3/2019

State law forbids a lobbyist from donating to the campaigns of candidates for the Kentucky General Assembly. But lobbyists can give to the state political parties, which use much of that money to support their candidates for the Legislature. An examination of the state Republican Party’s finance reports shows ta relatively small group of lobbyists provide a significant and steady cash flow, even for an organization with a growing number of big donors, as it has gained total control of the two chambers of the Legislature and the governor’s office.

Maryland: Baltimore Mayor Pugh to Take Leave of Absence in Midst of ‘Healthy Holly’ Book Controversy
MSN – Ian Duncan and Yvonne Wenger (Baltimore Sun) | Published: 4/1/2019

Baltimore Mayor Catherine Pugh announced she is taking an indefinite leave of absence for health reasons, just as a political scandal intensifies over what critics call a “self-dealing” book-sales arrangement that threatens her political career. Kaiser Permanente disclosed it paid $114,000 for about 20,000 copies of Pugh’s self-published paperbacks for children featuring a young girl named Healthy Holly aimed at promoting exercise and good nutrition. In 2017, the city’s spending board, which Pugh controls, awarded a $48 million contract to Kaiser to provide health benefits to city employees. Since 2011, Pugh has received $500,000 selling her illustrated books to the University of Maryland Medical System while she served on its board.

Missouri: Federal Investigation Plunges St. Louis County into Chaos
St. Louis Post-Dispatch – Jacob Barker and Jeremy Kohler | Published: 3/30/2019

The sudden delivery of wide-ranging subpoenas to St. Louis County, signaling an investigation by the U.S. attorney into the activities of County Executive Steve Stenger’s administration, has plunged the county, and the future of the region’s government, into chaos. Stenger’s ability to lead the county government, already limited by his toxic relationship with county lawmakers, now lies wounded. County employees openly speculate about who might be under investigation and for what conduct. Some county employees are concerned for their jobs, and all attention will shift to producing records to satisfy the subpoena.

New Jersey: Top Guns. These Are the Highest-Paid Lobbyists in N.J.
Newark Star Ledger – Ted Sherman (NJ Advance Media) | Published: 4/2/2019

Spending on lobbying in New Jersey hit $89.4 million last year, a decline after a record year for spending in 2017. But the number of registered lobbyists in the state, and how much they made, increased over the past year. Overall, 35 lobbyists made $200,000 or more, but many likely earned even more than what was reported. Lobbyists in New Jersey are not required to account for all their income. They do not report fees from lobbying local officials, and they do not have to list fees if their firm provides public relations advice to a client. Lobbyist Dale Florio described his role as “getting you in the door so you can make your case.” He said corporations and unions have thousands of members to make their voices heard to state officials. But for others, Florio said lobbying offers another avenue to make points to elected officials.

New Mexico: Governor Signs Bill for Ethics Commission
Santa Fe New Mexican – Andrew Oxford | Published: 3/28/2019

New Mexico Gov. Michelle Lujan Grisham signed into law a bill setting detailed guidelines for a new state ethics commission. Voters authorized an ethics commission by statewide ballot last year in the wake of a string of high-profile public corruption scandals. That vote still left lawmakers to determine the commission’s investigative powers and the extent of public access to documents and proceedings. Work in assembling the commission begins July 1, with a six-month startup period. The commission will have oversight of state officials and employees as well as candidates for state offices, lobbyists, and state contractors. New Mexico had been one of only six states without an independent ethics commission.

New York: In State Budget, More on Voting, Little on Ethics, and Half-Baked Campaign Finance Reform
Gotham Gazette – Samar Khurshid | Published: 4/2/2019

Government reform advocates are disappointed by what they see as half-measures on campaign finance reform and the exclusion of broader improvements to state procurement processes and ethics reforms in the New York state budget. The budget deal included additional measures and funding for voting, election, and campaign finance reforms approved in previous months. The headline, though, was the compromise to mandate a binding commission that is meant to create a public financing program for state elections and must issue a report by December 1. One proposal that was approved prohibits lobbyists, PACs, labor unions, and an individual registered as an independent expenditure committee from giving loans to candidates and political committees.

North Carolina: NC GOP Chairman, Major Political Donor Indicted in Alleged Bribery Scheme
WRAL – Travis Fain | Published: 4/2/2019

A federal grand jury indicted North Carolina Republican Party Chairperson Robin Hayes, along with major Republican campaign donor Greg Lindberg and two of his associates, on conspiracy and bribery charges for their attempts to influence state Insurance Commissioner Mike Causey. The alleged scheme would have traded more than $1 million in political contributions in exchange for regulatory help at the Insurance Department. The indictment mentions another person was in contact with Lindberg and Causey – “Public Official A.” Lindberg made a $150,000 contribution in February 2018 to a committee supporting the official at the same time Lindberg allegedly asked the politician to help sway Causey. A joint fundraising committee for U.S. Rep. Mark Walker logged a $150,000 donation from Lindberg on February 17, 2018.

Pennsylvania: Vestige of the Past, State House’s ‘Lobbyist Room’ Vanishes
AP News – Marc Levy | Published: 3/30/2019

The “lobbyist room” at the Pennsylvania House is now off limits to lobbyists. For decades, lobbyists in the room could watch floor proceedings on television, print out copies of legislation, and send messages to lawmakers in the chamber through a House page who was effectively assigned full-time to this task during floor sessions. The House’s chief administrative official said he decided the room is not appropriate and shut it down. The move comes after Gov. Tom Wolf challenged lawmakers last year to adopt the kind of gift ban that he imposed on the executive branch. Still, it seems to signal no broader effort to hold lobbyists at arm’s length, and the perk was not dramatically different than lobbyists’ accommodations in some other Capitols.

Virginia: ‘It Just Went Poof’: The strange aftermath of Virginia’s cascade of political scandals
MSN – Campbell Robertson (New York Times) | Published: 4/1/2019

In the space of a week in February, the public was stunned by revelations about each of the three highest statewide elected officials in North Carolina: the racist photograph in Gov. Ralph Northam’s medical school yearbook; accusations of sexual assault against Lt. Gov. Justin Fairfax; and Attorney General Mark Herring’s appearance in blackface at a party in college. Protesters and news crews swarmed the statehouse. Calls for resignations came from fellow Virginia Democrats, Republicans, and even 2020 presidential candidates. And then? “It just went poof – it’s like it never happened,” said Richmond resident Natalie Draper. Virginians have various theories as to how this surreal normalcy set in.

April 4, 2019 • Written by Jim Sedor

Thursday’s LobbyComply News Roundup

Campaign Finance National: “At the Federal Election Commission, No Watchdog for the Watchdogs” by Dave Leventhal for Center for Public Integrity Connecticut: “SEEC Says Campaigns Can’t Pay for Child Care” by Mark Pazniokas for Connecticut Mirror Elections National: “Liberals Infuriated […]

March 29, 2019 • Written by Jonathan Spontarelli

News You Can Use Digest – March 29, 2019

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 […]

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.

March 28, 2019 • Written by Jim Sedor

Thursday’s LobbyComply News Roundup

Campaign Finance Massachusetts: “MassFiscal’s Biggest Funder Is a Nonprofit It Founded” by Matt Stout for Boston Globe Mississippi: “Effort to Protect Identity of Nonprofit Donors Passes Amid Charges It Opens Door to ‘Dark Money’ in State Politics” by Bobby Harrison […]

March 27, 2019 • Written by Jim Sedor

Wednesday’s LobbyComply News Roundup

Campaign Finance Idaho: “Campaign Finance Overhaul Passes House” by Nathan Brown for Idaho Falls Post Register Massachusetts: “House Proposal for Caucus Funding Left Out of Budget Bill – but Caucuses May Still Fundraise” by Shira Schoenberg for MassLive.com Massachusetts: “Mayor […]

March 26, 2019 • Written by Jim Sedor

Tuesday’s LobbyComply News Roundup

Ethics National: “Trump’s Legal Troubles Are Far from Over Even as Mueller Probe Ends” by Rosalind Helderman and David Fahrenthold for San Jose Mercury News National: “Prosecutors No Longer Pursuing 188 Inauguration Protest Cases” by Keith Alexander (Washington Post) for […]

March 25, 2019 • Written by Allyson Smith

Monday’s LobbyComply News Roundup

Campaign Finance National: “Following Citizens United, Foreign-Owned Corporations Funnel Millions into US Elections” by Karl Evers-Hillstrom and Raymod Arke for Center for Responsive Politics National: “‘No PAC Money’ Pledges Leave Corporations in a Partisan Bind” by Kate Ackley for Roll […]

March 22, 2019 • Written by Jonathan Spontarelli

News You Can Use Digest – March 22, 2019

National: AT&T Peels Off Layer of Political Spending Secrecy – Thanks to Pushy Investors and the Michael Cohen Fiasco Dallas News – David Saleh Rauf | Published: 3/20/2019 AT&T is bowing to activist shareholders calling for more transparency about the […]

National:

AT&T Peels Off Layer of Political Spending Secrecy – Thanks to Pushy Investors and the Michael Cohen Fiasco
Dallas News – David Saleh Rauf | Published: 3/20/2019

AT&T is bowing to activist shareholders calling for more transparency about the company’s political spending, agreeing to disclose millions of dollars in previously untraceable contributions after last year’s embarrassment over payments to President Trump’s former lawyer, Michael Cohen. For the first time, AT&T is divulging some contributions to outside groups that keep their donors secret, providing a fuller, if still incomplete, picture of the company’s vast spending on state and federal politics. A new report released by AT&T details payments totaling about $4.2 million to industry groups and think tanks that was used for lobbying during a portion of last year.

Federal:

Analysis: Devin Nunes is suing Twitter and a satirical cow over mean tweets. Does he have a case?
MSN – Deanna Paul (Washington Post) | Published: 3/20/2019

U.S. Rep. Devin Nunes filed a lawsuit claiming Twitter, two parody Twitter accounts, and a Republican political consultant violated the First Amendment and defamed him. In addition to $250 million in damages, Nunes is demanding Twitter disclose the identities behind the anonymous accounts that have caused him suffering, according to the suit: “Devin Nunes’ Mom” and “Devin Nunes’ Cow.” The suit, filed in state court, alleged violations of Virginia’s law against insults. It also brought claims against Twitter for conspiracy and negligence. Nunes has been ridiculed for the suit, and the case has been labeled by most experts as doomed to fail. But others believe there is more to the lawsuit than any desire by Nunes to create a spectacle. According to First Amendment attorney Floyd Abrams, the speech involved is protected for several reasons.

Former Spa Owner and Frequent Mar-a-Lago Guest Sparks Concerns About ‘Porous’ Environment at President’s Club
MSN – Michelle Ye Hee Lee, Emily Rauhala, Lori Rozsa, and Josh Dawsey (Washington Post) | Published: 3/15/2019

Li “Cindy” Yang’s activities at President Trump’s Mar-a-Lago resort have attracted attention after a spa she once owned was the target of a sex-trafficking sting involving the owner of the New England Patriots. Scrutiny has also centered on a company Yang ran offering foreign visitors access to the president and other GOP officials. Experts in Chinese influence say groups to which Yang has been tied have links to Communist Party’s efforts to spread influence in the West. Yang has not been accused of any wrongdoing, but because she attended so many events at Mar-a-Lago and had such ready access to high-ranking U.S. officials, it has renewed questions about security at the resort and about who can gain the ear of the president for the price of a ticket to an event.

Lobbying Case Against Democrat with Ties to Manafort Reaches Key Stage
MSN – Kenneth Vogel and Katie Benner (New York Times) | Published: 3/18/2019

A federal investigation into a former White House counsel in the Obama administration is reaching a critical stage, presenting the Justice Department with a decision about whether to charge a prominent Democrat as part of a more aggressive crackdown on illegal foreign lobbying. The case involving Gregory Craig was transferred in January from federal prosecutors in New York to those in Washington. The move reflects an eagerness within the department to prosecute violations of lobbying laws after special counsel Robert Mueller focused on foreign influence in his investigations. The probe centers on whether Craig should have disclosed work he did in 2012 while he was a partner at Skadden, Arps, Slate, Meagher & Flom on behalf of the Russia-aligned government of Viktor Yanukovych, then the president of Ukraine.

From the States and Municipalities:

California: California Is Awash in Cannabis Cash, Which Some Use to Bribe Public Officials
MSN – Patrick McGreevy (Los Angeles Times) | Published: 3/17/2019

In the more than two years since California voters approved the licensed growing and sale of recreational marijuana, the state has seen a half-dozen government corruption cases as black-market operators try to game the system, through bribery and other means. Proposition 64, approved in 2016, allowed the state to license businesses to grow and sell pot but required the firms to also get approval from the cities and counties, most of which have outlawed marijuana operations. Experts say that local resistance explains why many of the corruption allegations center on illegal attempts to buy help from city and county officials.

California: Donors to D.A. Jackie Lacey Included a Murder Suspect’s Parents and a Convicted Felon
Los Angeles Times – Matt Hamilton and Harriet Myers | Published: 3/18/2019

Los Angeles County District Attorney Jackie Lacey collected more than $125,000 in campaign contributions last year despite not holding any public fundraising events. Many giving to Lacey are longtime donors to local politicians, but others include people accused of serious crimes or misconduct, or relatives and associates of the accused. Among Lacey’s donors were the parents of a man awaiting trial for murder, a felon convicted of trying to smuggle missile parts to Iran, and a used car dealer previously sanctioned for an illegal campaign contribution. Campaign donations to prosecutors have come under national scrutiny in recent years. Experts said a district attorney is well advised to have a system in place to vet every donor.

District of Columbia: D.C. Council Votes to Reprimand Jack Evans Over Ethics Issues
Washington Post – Fenit Nirappil | Published: 3/19/2019

The District of Columbia Council reprimanded its longest serving member, Jack Evans, and announced plans to dilute the power of his committee after he repeatedly used his government staff and email to solicit business from law firms that lobby the city, offering to tap his influence and connections to help their clients. The unanimous vote comes as the veteran lawmaker is the target of a federal investigation into his business dealings and faces the threat of a recall election. The reprimand says Evans violated council rules but does not address the ties between Evans and private companies that are part of a federal probe. Multiple lawmakers say they want to reserve judgement on that until the federal investigation wraps up.

Indiana: Complaint Could Cost Attorney General Curtis Hill His Law License – and Elected Position
Indianapolis Star – Tony Cook, Ryan Martin, and Kaitlin Lange | Published: 3/19/2019

Indiana Attorney General Curtis Hill could lose his law license and his elected position after a little-known state body revived allegations that Hill inappropriately touched four women at an Indianapolis bar last year. The state Supreme Court’s Disciplinary Commission filed a complaint against Hill that says he engaged in acts of battery or sexual battery against the women. In doing so, the commission says, Hill broke the Indiana Rules of Professional Conduct. The accusations are administrative in nature and are not considered criminal charges. Hill, who has denied wrongdoing, will have the opportunity to defend himself and ultimately the state Supreme Court would decide Hill’s fate. Discipline, if any, could range from public reprimand to disbarment. Disbarment would amount to a worst-case scenario for Hill because the law requires the state attorney general to hold a law license.

Kentucky: Former Lobbyist to Pay $15,000 Ethics Fine. He Was Already Convicted in Bribery Case.
Lexington Herald Leader – Bill Estep | Published: 3/18/2019

The Kentucky Executive Branch Ethics Commission fined ex-lobbyist Jim Sullivan and one of his former clients for multiple lobbying violations. Sullivan agreed to pay $15,000 for failing to register from 2005 through 2014 and setting up a deal to represent a company with his pay contingent on an agency making a decision for his client. The commission also announced a $50,000 penalty against Cannon Cochran Management Services, an insurance provider. Sullivan lobbied for the firm. The company did not contest 14 counts of violating the ethics code, some for not registering after hiring an individual to lobby. Sullivan was convicted of giving a $1,000 bribe to Tim Longmeyer, the former head of the Personnel Cabinet, to get state work for company called MC Squared.

Kentucky: Kentucky Legislature Passes Bill Stripping Grimes of Authority Over State Board of Elections
ProPublica – Jessica Huseman | Published: 3/15/2019

The Kentucky Legislature passed a bill that strips Secretary of State Alison Lundergan Grimes of her authority over the State Board of Elections (SBE), restructures the board, and makes misusing the voter registration system a misdemeanor crime. The bill takes multiple steps to scale back the level of control Grimes has asserted over the SBE in recent years, including removing the secretary of state as the chairperson of the board. New reports detailed the secretary of state’s use of the voter registration system to look up information on political rivals, as well as the range of misconduct allegations against Grimes being explored by state investigators. Records confirmed that staff in her office had looked up those named in the reports by ProPublica and The Lexington Herald-Leader, including members of a state ethics agency currently investigating Grimes’ conduct.

Maryland: Baltimore Mayor Pugh Didn’t Disclose Seat on Maryland Medical System Board, as Required on City Ethics Forms
Baltimore Sun – Doug Donovan and Luke Broadwater | Published: 3/14/2019

Baltimore Mayor Catherine Pugh has not reported on disclosure forms filed with the city’s ethics office that she sits on the board of directors for the University of Maryland Medical System, according to a review of records. Instructions on the form tell public officials to report any “office, directorship, salaried employment, or similar position with any business entity that was doing business with the city.” Also, the University of Maryland Medical System did not disclose on its federal tax form for the year ending June 30, 2017, that it had entered into a contract with Pugh to buy 20,000 copies of her book, “Healthy Holly: Exercising is Fun,” the form shows. Ethics officials confirmed Pugh should have disclosed the position. To avoid action against her by the city ethics board, she would need to file an amended form.

Missouri: Voters Approved Clean Missouri, but Lawmakers Want Them to Reconsider
Columbia Missourian – Galen Barcharier | Published: 3/19/2019

Last November, 62 percent of voters approved Amendment 1, the “Clean Missouri” proposal that included measures to limit the power of lobbyists, reduce campaign contributions, and create a new redistricting process. Now, lawmakers are moving to change or completely roll back parts of the ballot measure, with a focus on redistricting. Five resolutions were proposed between the House and the Senate, all of which relate to changing or repealing the redistricting measures enacted from Amendment 1, as well as lobbying and open records measures. All of them propose new constitutional amendments, which would send the issue back to voters to decide. Supporters of Amendment 1 issued a statement in response to the resolutions’ filing, condemning them and asserting the decision of the voters should remain in place.

Nevada: Municipal Election Voters Blind to Campaign Donors
Las Vegas Revierw-Journal – Shea Johnson | Published: 3/13/2019

A glitch in a two-year-old bill meant to strengthen campaign finance reporting has actually weakened transparency in eight Nevada cities, an investigation found, ensuring voters in Las Vegas and elsewhere will be blind to political donors when casting a ballot this spring. That is because reporting deadlines that formerly required reports linked to elections now require candidates to file quarterly. Instead of disclosing contributions and expenses 21 days and four days before an election, candidates now only need to submit paperwork 15 days after a quarter concludes. The first reporting period of 2019 is April 15, which is 13 days after the April 2 primary election.

New Mexico: Legislature Seals Deal on Independent Ethics Commission
New Mexico In Depth – Trip Jennings | Published: 3/16/2019

With just hours left in the session, New Mexico lawmakers reached agreement on legislation that would outline how a new voter-approved state ethics commission would operate. Lawmakers passed the legislation this session after seventy five percent of voters approved adding an independent ethics panel with subpoena power to the state constitution. The bill establishes a commission that would oversee public officials, including state lawmakers, state employees, and constitutionally elected officials like the governor. The seven-member commission could fine officials if they are found to have violated civil provisions of several state laws. People who file complaints would have to in the presence of a notary public attesting to the truth of their allegations under penalty of perjury.

New York: 9 Fund-Raisers in 1 Night: Democrats vow reform in N.Y., but money still flows
New York Times – J. David Goodman | Published: 3/20/2019

State officials have long talked about the need to revamp New York’s campaign finance laws and limit the influence of lobbyists, but little has changed. A bill has been introduced repeatedly for nearly two decades to ban fundraisers in Albany when the Legislature is in session, but it has gone nowhere. In at least 29 states, it is against the law for lobbyists or principals to make campaign contributions while the state Legislature is in session. The goal is to avoid what is commonplace in New York: elected officials spend their day meeting with lobbyists to discuss pending legislation, and then spend their night collecting checks from many of the same people. Yet that two-step is part of the culture in Albany, especially in the weeks before a new state budget is officially ironed out, when opportunities to win influence are abundant.

March 21, 2019 • Written by Jim Sedor

Thursday’s LobbyComply News Roundup

Campaign Finance Massachusetts: “New Proposal for Massachusetts House Caucus Funding Raises Fears of Legislative ‘Slush Fund’” by Shira Schoenberg for MassLive.com Elections California: “L.A. City Council Candidate Sues to Stop Former Ethics Commissioner from Running” by Emily Alpert Reyes for […]

March 20, 2019 • Written by Jim Sedor

Wednesday’s LobbyComply News Roundup

Campaign Finance California: Donors to D.A. Jackie Lacey Included a Murder Suspect’s Parents and a Convicted Felon by Matt Hamilton and Harriet Myers for Los Angeles Times Maryland: Baltimore Co. Council Approves Public Campaign Financing Measure by Alison Knezevich for […]

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