September 2, 2015 • Written by Jim Sedor

Wednesday Government Relations News

Lobbying “Hillary Clinton Sides with Liberals on Anti-Lobbying Bill” by Sam Frizell for Time Missouri: “Ethics Commission Rules Dinner Violated Law, Issues No Fines” by Rudi Keller for Columbia Tribune Missouri: “Missouri Lawmakers Ranked by How Many Lobbyist Gifts They […]

September 1, 2015 • Written by Jonathan Spontarelli

Ask the Experts – Political Contributions from State Vendor Employees

Q. I would like to contribute to political candidates in my state, but my company is a state vendor. Are there laws prohibiting me from making personal contributions? A. Whether an employee of a state vendor may contribute to political […]

Q. I would like to contribute to political candidates in my state, but my company is a state vendor. Are there laws prohibiting me from making personal contributions?

A. Whether an employee of a state vendor may contribute to political candidates varies widely based on jurisdiction. The answer may depend on the employee’s role in his or her company, as well as the position held by the candidate receiving the contribution.

Ohio, for example, prohibits a partner, shareholder, administrator, executor, or trustee of a state vendor from making personal contributions exceeding $1,000 to the public official with ultimate responsibility for awarding a contract during the contribution blackout period if the contract is not competitively bid. In this instance, the prohibition depends both on the title of the employee, as well as the position of the public officer receiving the contribution.

Other states prohibit contributions for contracts in certain industries. Florida prohibits individuals or firms providing legal or financial advisory assistance to the Division of Bond Finance of the State Board of Administration from making contributions to any candidate for governor or for a Cabinet position in Florida, during the contribution blackout period.

Connecticut goes so far as to prohibit certain state vendor employees from contributing to candidates, even if the employees are located out of state. For example, employees of a state vendor with the title of treasurer or executive vice president may not contribute to restricted Connecticut candidates, even if they work in another state for their company. Spouses and dependent children over age 18 of restricted employees are also prohibited from contributing.

Each jurisdiction structures its pay-to-play restrictions differently. Be sure to review the campaign finance law for the state in which you plan to contribute to determine if there are restrictions on state vendor employees or their family members.

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.

September 1, 2015 • Written by Jim Sedor

Tuesday Lobbying and Campaign Finance News Update

Lobbying “Lobbying Firm Fined for Disclosure Violations” by Dave Levinthal for Center for Public Integrity Maryland: “Maryland Receives ‘B’ Grade on Lobbying Disclosure” by Wiley Hayes for Carroll County Times North Carolina: “Influence of Lobbyists Makes Them Practically a ‘Third […]

August 28, 2015 • Written by Jonathan Spontarelli

News You Can Use Digest – August 28, 2015

Federal: After Allegations That It Lobbied with Federal Money to Block Competition, Lockheed Martin Agrees to Pay Almost $5 Million Washington Post – Lisa Rein | Published: 8/24/2015 The managers of one of the nation’s premiere federal laboratories in New Mexico […]

Federal:

After Allegations That It Lobbied with Federal Money to Block Competition, Lockheed Martin Agrees to Pay Almost $5 Million
Washington Post – Lisa Rein | Published: 8/24/2015

The managers of one of the nation’s premiere federal laboratories in New Mexico agreed to pay nearly $4.8 million to settle allegations of improperly attempting to influence members of Congress and others to extend the lab’s $2.4 billion management contract. Over five years starting in 2009, top executives for Lockheed Martin, who were being paid by the federal government to run Sandia National Laboratories, ran a fierce campaign to lobby members of Congress and senior administration officials for a seven-year extension of their contract, according to the settlement the Justice Department. It is not surprising that a politically connected defense contractor would lobby hard to keep a lucrative slice of federal business. But this case went further. It was taxpayers, not Lockheed’s corporate lobbying arm, who paid for the lobbying.

Meet the Liberals Who Love Trump
Politico – Ben Wofford | Published: 8/26/2015

The left is generally no fan of Donald Trump, but there is a contingent of liberals who take a different view. One is Harvard Law School professor Lawrence Lessig, arguably the country’s leading proponent of campaign finance reform, who said Trump has done so much to jazz up an otherwise eye-glazing issue that he would consider running on the same ticket as a third-party candidate. As pundits search for the source of Trump’s resilient appeal, reformers say they have long known the answer: the constant emphasis on how his wealth immunizes him from insider influence. “He’s made the same points the reformers have made: that this is a ‘pay-to-play’ system, that people put their money in and expect to get results,” said former FEC Chairperson Trevor Potter.

The Net Worth of Presidential Candidates
USA Today – Thomas Frohlich, Michael Sauter, and Sam Stebbins (24/7 Wall St.) | Published: 8/26/2015

Presidential candidates can expect very little privacy in their personal life, and with their finances. While candidates are not required to make their tax returns public, the practice has become common since the 1970s. Based on tax returns and other financial disclosures, the current candidates’ assets range from Scott Walker, who is worth as little as $36,000, to Donald Trump, who has an estimated net worth of $2.9 billion. The net worth of a presidential candidate does not necessarily determine the financial strength of the campaign. Some candidates’ campaign funds are far greater than their net worth, while others are far lower.

What the ‘Deez Nuts’ Candidacy Says about the State of US Democracy
Christian Science Monitor – Sara Aridi | Published: 8/20/2015

The presidential candidate Deez Nuts was surging in a recent poll, albeit unscientific, in North Carolina. Deez Nuts was also the number one trending topic on Twitter. In registering with the FEC, Deez Nuts listed an address in rural Wallingford, Iowa. Mark Olson said Deez Nuts was his son Brady, who is a sophomore in high school. Tom Jensen, the director of Public Policy Polling, said he added Deez Nuts to statewide survey three weeks ago because “the name makes people laugh, and it’s a long presidential election.” But Jensen also drew a serious conclusion from the Deez Nuts surge. “I would say Mr. Nuts is the most ludicrous and unqualified third-party candidate you could have, but he’s still polling at seven, eight, nine percent,” Jensen said. “Right now the voters don’t like either of the people leading in the two main parties, and that creates an appetite for a third-party candidate.”

Would More Lobbying Improve America?
Politico – Kevin Hartnett | Published: 8/24/2015

Tom Holyoke, a political scientist at Fresno State University, has been studying the internal dynamics of lobbying for years and has come to believe the country would be better off if lobbyists did more effective work for their clients. The problem, he writes in a new book, is not that corporations do not get enough representation – it is that lobbyists are crafty, and do not work for their clients as much as they claim. Instead, they tell their clients what they want to hear, while chiefly acting to stay tight with their contacts in Congress. “It becomes more important to lobbyists to maintain these relationships than to accurately represent the wishes and concerns of people they’re supposed to be representing,” said Holyoke.

From the States and Municipalities:

California – L.A. Wants More Details about Business Groups That Donate to City Campaigns
Los Angeles Times – Emily Alpert Reyes | Published: 8/27/2015

Members of the Los Angeles City Ethics Commission said they wanted staffers to come up with ways to require corporations, limited liability companies, and other “non-individual” campaign donors to publicly disclose more information about who controls them. The concern, said commission President Jessica Levinson, is that “it is really difficult to follow the money.” The push for more information comes after The Los Angeles Times reported on how challenging it is to track who is behind contributions made by such groups. The newspaper found several instances in which different companies with the same chief executive, address, or both donated to a candidate, but publicly available records left it unclear whether the companies were commonly owned.

Colorado – Colorado Energy Companies Spend Top Dollar on Lobbyists; What Do They Get in Return?
Colorado Springs Gazette – Megan Schrader | Published: 8/24/2015

Stat laws in Colorado has restricted the amount of entertaining lobbyists can do. Amendment 41, a 2006 ballot initiative, strictly banned lobbyists from spending anything on lawmakers. For everyone else who is not a registered lobbyist, the limit is currently $59 per-person, per-year, with a handful of exceptions. “In Colorado the legislative process is a very clean, ethical process,” said former House Speaker Chuck Berry. But Berry said the role of lobbyists has changed dramatically since he was in office from 1985 to 1998. He said term limits have led to void of institutional knowledge and makes both lobbyists and bureaucrats more powerful.

Illinois – Ex-Redflex Exec Pleads Guilty to Helping Orchestrate $2M Bribery Scheme
Chicago Tribune – Jason Meisner and David Kidwell | Published: 8/20/2015

Karen Finley, the former chief executive of a red-light camera company, pleaded guilty in a scheme that funneled hundreds of thousands of dollars in bribes to secure contracts in Chicago worth $124 million. Finley pleaded guilty to similar charges in a federal case in Ohio. In the Chicago case, Finley acknowledged she arranged for cash and benefits to go to a city transportation official, John Bills, and his friend; the benefits included golf trip and hiring the official’s friend as a Redflex contractor. Bills, who retired in 2012, has pleaded not guilty to extortion, bribery, and other charges.

Maine – Group Turns over Donor List from Gay Marriage Fight in Maine
St. Louis Post-Dispatch – David Sharp (Associated Press) | Published: 8/24/2015

The National Organization for Marriage (NOM) filed details of its financial activities related to a 2009 effort to repeal Maine’s same-sex marriage law following a lengthy legal battle. Jonathan Wayne, executive director of the Maine ethics commission, said the list had been filed at the agency’s website and NOM indicated it will not further fight the matter through the courts. The commission had ruled NOM violated the state’s campaign finance law and ordered the conservative group to pay a $50,250 penalty and release its donors. Although NOM paid the penalty, it continued to resist disclosure. But NOM lost that fight when the Supreme Judicial Court ordered it to hand over the list of donors.

Missouri – Missouri Lags behind Neighbors on Ethics Laws
Springfield News-Leader – John Swedien | Published: 8/23/2015

Missouri has no limits on campaign donations, no restrictions on the gifts legislators can accept from lobbyists, and no rule preventing lawmakers from immediately becoming lobbyists after leaving office. This stands in contrast to Missouri’s eight neighboring states; all limit at least one of those activities. Arkansas, Kentucky, Oklahoma, and Tennessee restrict all three. Illinois, Iowa and Kansas each limit two of the activities, and Nebraska caps lobbyists’ gifts.

Ohio – Former Ohio Deputy Treasurer Extradited from Pakistan to Serve 15 Years for Bribery, Money Laundering
Cleveland Plain Dealer – Jane Morice (Northeast Ohio Media Group) | Published: 8/26/2015

Former Ohio Deputy Treasurer Amer Ahmad has been extradited from Pakistan to serve a 15-year prison sentence for a kickback scheme. He pleaded guilty in 2013 to bribery and conspiracy charges, though he fled to Pakistan to avoid punishment. Ahmad admitted he funneled business to Douglas Hampton, a securities broker, in exchange for bribes. Ahmad was able to conceal the bribery payments by passing them through accounts of a landscaping business he owned. Over the two-year period, Hampton paid Ahmad more than $500,000. In return, Hampton received about $3.2 million in commissions for more than 350 securities trades on behalf of the treasurer’s office.

Oregon – Mystery Money: Oregon lets officials keep income details in shadows
Portland Oregon – Denis Theriault | Published: 8/22/2015

Voters might have known years sooner how much Cylvia Hayes was paid to push a private agenda while she was Oregon’s first lady if John Kitzhaber had been governor of California or 16 other states. Ethics filings in those states require officials to disclose where they and those in their households get their money, and roughly how much. But Kitzhaber had no obligation to report Hayes’ income from private clean-energy clients, income she accepted while also advising the state on energy issues. Oregon’s rules for income disclosure have not changed much since 1974. The rules allow officials from the statehouse down to local school boards hold back key information.

Tennessee – Lawmakers Spent 30K of Campaign Funds on Pro Sports Tickets
The Tennessean – Dave Boucher | Published: 8/22/2015

A recent analysis of state campaign finance records show at least seven Tennessee lawmakers collectively spent more than $30,000 in campaign money on tickets to professional sporting events since 2003. Although state law bans the use of campaign funds for tickets to sporting events, concerts, or other similar activities, there is an exemption that allows essentially all ticket purchases to go unchecked. Buying such tickets with campaign funds is largely banned for federal candidates, but the campaign finance laws in Tennessee and a slew of other states either allow or do not clearly ban such purchases.

Texas – Pool Proposes Changes to Rules for Lobbyists
Austin Monitor – Jo Clifton | Published: 8/26/2015

The Austin City Council is weighing reforms to the city’s lobbying law. The law currently requires lobbyists to register and disclose who their clients are. But the code is murky in its definition of who must register, and those who register do not always comply with all the reporting requirements. Under the proposed reforms, the registration fee would increase to $350; lobbyists for nonprofits would only have to pay $50 a year. The city auditor would be charged with reviewing lobbying registration for compliance, and violators could face individual fines for failing to register or disclose information. A person could be barred from lobbying after multiple violations.

Utah – It’s American Legion Versus Lobbyists in Fight for Space at Capitol
Salt Lake Tribune – Lee Davidson | Published: 8/24/2015

The American Legion has enjoyed free office space in the basement of the Utah Capitol since World War I. But the Capitol Preservation Board voted recently to try to get the organization to move so it can rent more space to lobbyists. The clash arose when the Capitol Hill Association of lobbyists sought to expand its current 1,800 square feet of space, located across the hall from the American Legion. Jodi Hart, the association’s president, told the board her group “has run out of space” for its current 35-member lobbying groups, who pay $4,500 per organization to join, and about $1,000 per person in annual dues, and has a waiting list of six organizations that want to join. The association proposed expanding into storage space next to its suite to add a few more conference rooms.

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.

August 27, 2015 • Written by Jim Sedor

Thursday News Roundup

Campaign Finance “Meet the Liberals Who Love Trump” by Ben Wofford for Politico New York: “State Elections Watchdog Files Lawsuit against ‘LLC Loophole’” by Chris Bragg for Albany Times Union Ethics “Prosecutors Rebuke Menendez Over Request to Dismiss His Corruption […]

August 25, 2015 • Written by Jim Sedor

Tuesday Lobbying and Campaign Finance News Update

Lobbying “After Allegations That It Lobbied with Federal Money to Block Competition, Lockheed Martin Agrees to Pay Almost $5 Million” by Lisa Rein for Washington Post “Would More Lobbying Improve America?” by Kevin Hartnett for Politico Kansas: “Transparency Group: Kansas […]

August 24, 2015 • Written by Jim Sedor

Monday News Roundup

Campaign Finance “Federal Election Commission Refuses to Release Computer Security Study” by Dave Levinthal for Center for Public Integrity North Carolina: “Deeper Probe of NC Video Sweepstakes Money Sought” by Craig Jarvis and Anne Blythe for Raleigh News & Observer […]

August 21, 2015 • Written by Jonathan Spontarelli

News You Can Use Digest – August 21, 2015

Federal: Facing Money Gap, Hillary Clinton Slowly Warms to ‘Super PAC’ Gifts New York Times – Amy Chozik and Eric Lichtblau | Published: 8/17/2015 Republican presidential candidates have gained a near monopoly on donors of $1 million or more: 56 donors […]

Federal:

Facing Money Gap, Hillary Clinton Slowly Warms to ‘Super PAC’ Gifts
New York Times – Amy Chozik and Eric Lichtblau | Published: 8/17/2015

Republican presidential candidates have gained a near monopoly on donors of $1 million or more: 56 donors gave at least that much for a total of $124.2 million, outgiving Democrats’ biggest donors by about 12 to one. A single GOP contributor, Robert Mercer, a hedge fund magnate who gave $11.3 million, surpassed all of the million-dollar donors supporting Hillary Clinton, combined. Clinton’s allied super PACs, mindful that to resist the tide is to drown, are soliciting giant donations in earnest now, with her blessing. But the disparity, which has worried many Democrats, also has to do with the ambivalence, or outright disdain, that Clinton’s donors say they feel, and that some say they have picked up from her, about the role that super PACs should play.

Hillary Clinton 2016: Campaign wants donors to pay for their own food, parking
Politico – Kenneth Vogel | Published: 8/18/2015

Hillary Clinton’s campaign wants donors to pay for their own food and valet parking at fundraising events. The request filed with the FEC sketches out a novel plan under which the campaign would shift some fundraising costs to donors, without counting against their contribution limits. Campaigns usually either pay such costs directly or, in the case of smaller events in donors’ homes, allow hosts to contribute food, drink, and parking costs. But when hosts provide services and the tally exceeds $1,000, the FEC interprets those costs as in-kind donations because they are considered “necessary expenses incurred to provide an inducement for the making of a contribution.” And those in-kind contributions count against donors’ $2,700 limit for the primary election.

K Street Betting on Hillary
The Hill – Megan Wilson | Published: 8/20/2015

While many lobbyists are holding their pocketbooks in the early stages of the 2016 election cycle, Hillary Clinton received at least $625,703 from 316 registered lobbyists and corporate PACs during the first half of the year. Former Florida Gov. Jeb Bush ranks as a distant second in the influence industry, collecting $444,500 from 140 lobbyists. The donations are a shift from the last couple election cycles, especially on the Democratic side. Barack Obama made campaign promises in 2008 and 2012 not to take money from registered lobbyists, in addition to vowing to ban them from the administration, so the early donations signal K Street hopes to be back in good graces when the next administration takes over the White House.

From the States and Municipalities:

California – $240 Million Education Contract Illustrates State Lobbying Loopholes
KQED – Marisa Lagos | Published: 8/13/2015

Critics say California’s murky disclosure laws make it nearly impossible to know exactly what kinds of work private companies do to influence how thousands of state government contracts are awarded, including whether those same companies seek advantages with behind-the-scenes lobbying. A bill moving through the Legislature would force disclosure around lobbying for state contracts and put California in a group of just 18 states that require disclosure of procurement lobbying.

Florida – Florida Prison Problem Complicates Redistricting
Bradenton Herald – Jeremy Wallace | Published: 8/18/2015

Florida’s prison population is becoming a point of contention in the state Legislature’s attempt to redraw congressional districts. The last Census counted more than 160,000 people in correctional facilities, and they cannot vote. But they can skew how districts are drawn, and ultimately who represents the state in the U.S. House. The federal government has required states to count prisoners as residents of the towns where they are held, not where they are from. Peter Wagner, executive director of the Prison Policy Initiative, said counting prisoners where they are incarcerated means states are giving people living in communities with prisons more voting power and representation than they should have when it is clear inmates are not part of the town and counties they are counted in.

Indiana – Waivers from State Ethics Laws on the Decline
Indianapolis Star – Chelsea Schneider | Published: 8/17/2015

State records show Indiana officials have been issuing fewer waivers that would let state employees take related jobs in the private sector before a yearlong wait. Data show about 10 were granted each year over the past decade, but just one has been allowed so far this year. They could continue to decline because the General Assembly tightened the process by requiring all waivers to go before the Indiana State Ethics Commission. Before the law changed, department heads had wide discretion in determining whether to lift restrictions.

Missouri – Missouri House Is Developing New Intern Rules to Prevent Sexual Harassment
Kansas City Star – Jason Hancock | Published: 8/17/2015

The Missouri House is working on new intern rules aimed at preventing sexual harassment after recent scandals led two legislators to resign. Tighter rules for administering internships are part of an early draft of the policy, which also calls for the establishment of an ombudsman so interns could report problems. The scandals also have brought renewed attention to legislative ethics reform. To many lawmakers, Missouri’s status as the only state with no campaign contribution limits, no caps on lobbyist gifts, and no restrictions on lawmakers becoming lobbyists contributes to an anything-goes atmosphere underlying the sexual harassment of interns.

North Carolina – Deeper Probe of NC Video Sweepstakes Money Sought
Raleigh News & Observer – Craig Jarvis and Anne Blythe | Published: 8/20/2015

Millions of dollars was spent recent elections in a futile attempt to keep the video sweepstakes industry legal in North Carolina, with much of the spending directed by a man later charged in Florida with racketeering. The free-wheeling spending on politicians, lawyers, and lobbyists has raised suspicions, although one probe by the state elections board found no campaign finance violations. Democracy North Carolina, whose complaint prompted the two-year elections board inquiry, now wants the U.S. attorney and the Wake County district attorney to determine whether laws against corruption, bribery, or other offenses were broken, and for authorities to take another look at potential election law violations.

Ohio – Was Council Members’ Football Trip Worth More Than $250?
Columbus Dispatch – Lucas Sullivan | Published: 8/14/2015

The trip that four Columbus City Council members took with a lobbyist to watch the Big Ten Championship football game would have cost about three times the $250 they paid, a travel expert and stadium officials say. Ohio ethics laws state that if the difference between the cost paid for the trip and the actual fair market value exceeds $75, officials must pay the difference or disclose it as a gift on their financial-disclosure forms. The four council members who went –Andrew Ginther, Shannon Hardin, Michelle Mills, and Eileen Paley – all eventually paid $250 to watch Ohio State beat Wisconsin. Paley and Hardin disclosed the trip on their ethics forms, but Ginther and Mills did not.

Oklahoma – Ethics Commission Votes to Suspend Rules after Lawsuit
Albany Times Union; Associated Press – | Published: 8/14/2015

Some state property can be used again for political fundraising and distribution of campaign materials after the Oklahoma Ethics Commission decided to suspend rules against these activities. The action came after the state Democratic Party filed a federal free speech lawsuit against the panel.

Oklahoma – Oklahoma Sen. Rick Brinkley Pleads Guilty to Fraud Charges after Stealing More than $1.8M from BBB
The Oklahoman – Nolan Clay and Rick Green | Published: 8/20/2015

State Sen. Rick Brinkley pleaded guilty to federal fraud charges and resigned from the Oklahoma Legislature. He was accused of embezzling $1.8 million as head of the Better Business Bureau of Tulsa and failing to report about $148,390 in income on his 2013 tax return. A civil lawsuit filed by the Better Business Bureau alleged Brinkley used its money to pay “his mortgage, pool cleaner, personal credit card invoices, and to support a hidden gambling habit.” Brinkley was on track to become the president pro tem of the Senate in two years. His future began to unravel after questions were raised about a $49,693 check he had written from his campaign account to the Better Business Bureau.

Pennsylvania – Lobbyist Spending in Harrisburg Trending Upward
Pittsburgh Post-Gazette – Chris Potter | Published: 8/16/2015

In 2007, when Pennsylvania lobbyists began reporting their activity, they spent $84,175,726. By 2014, the total was $106,283,183. The Marcellus Shale Coalition is the state’s most active lobbying concern. It reports spending just under $14.1 million since 2010. A handful of individual companies reported their own million-dollar expenditures. Six of Pennsylvania’s top 10 lobbying interests work in health care or insurance. “The ideal situation would be if representatives were hearing from citizens, rather than people paid to influence them,” said Mark Singel, a former Pennsylvania lieutenant governor who now works as a lobbyist for the Winter Group.

Wisconsin – Audit of Wisconsin Elections Board Finds No Major Problems with Handling of Investigations
Minneapolis Star Tribune – Scott Bauer (Associated Press) | Published: 8/20/2015

A Legislative Audit Bureau report found no major problems with the way the Wisconsin Government Accountability Board (GAB) handles complaints. “It puts to rest any questions as to whether the six board members exercise independent judgment when they make decisions about complaints, investigations, and penalties,” said GAB Director Kevin Kennedy. As much as Kennedy may wish that to be the case, Republicans who control the Legislature, along with Gov. Scott Walker, have said for months they plan to make significant changes to the board, including possibly doing away with it and starting over. The audit follows a more comprehensive one released in December that looked at the GAB’s entire operation, not just investigations. In that report, the bureau did not recommend that the GAB be overhauled or dismantled.

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.

August 20, 2015 • Written by Jim Sedor

Thursday News Roundup

Lobbying California: “Lobbying Ordinance to Be Reviewed by Next Board of Supervisors” by Wes Bowers for Stockton Record Florida: “Donald Trump Gets $23,000 Refund from Miami-Dade County” by Douglas Hanks (Associated Press) for Bradenton Herald New York: “Albany Med VP […]

August 19, 2015 • Written by Jim Sedor

Wednesday Government Relations News

Lobbying California: “$240 Million Education Contract Illustrates State Lobbying Loopholes” by Marisa Lagos for KQED California: “Local Governments Spend Big to Influence Sacramento” by John Myers for KQED New York: “Former Top Albany Lobbying Firm in Process of Being Acquired […]

August 18, 2015 • Written by Jim Sedor

Tuesday Lobbying and Campaign Finance News Update

Lobbying California: “Bill Looks to Put State Lobbying Laws on Par With Local Rules” by Guy Marzorati and Marissa Lagos for KQED Hawaii: “Maui County Plans to Post List of Lobbyists Online” by Nathan Eagle for Honolulu Civil Beat Pennsylvania: […]

August 14, 2015 • Written by Jonathan Spontarelli

News You Can Use Digest – August 14, 2015

National: Corruption Accusations Paint Troubling Picture of Politics in Philadelphia Region Philadelphia Inquirer – Jonathan Tamari and Chris Palmer | Published: 8/9/2015 The recent indictments of public officials on corruption charges paint a damning picture of politics in Pennsylvania and New […]

National:

Corruption Accusations Paint Troubling Picture of Politics in Philadelphia Region
Philadelphia Inquirer – Jonathan Tamari and Chris Palmer | Published: 8/9/2015

The recent indictments of public officials on corruption charges paint a damning picture of politics in Pennsylvania and New Jersey, one that has dominated front pages with stories of wealthy campaign donors, officials using their posts for their own ends, and the alleged abuse of taxpayer dollars. Pennsylvania Attorney General Kathleen Kane, U.S. Rep. Chaka Fattah, and U.S. Sen. Robert Menendez, along with two people charged in the George Washington Bridge scandal, have all insisted they have done nothing wrong. Still, the stream of charges adds a dark chapter to two states already widely regarded as among the most corrupt in the county.

How Transparent Is Your State’s Lobbying Disclosure?
Sunlight Foundation – Jonah Hahn | Published: 8/12/2015

A review by the Sunlight Foundation of lobbyist disclosure requirements found many states fail to address the legislative flaws that create loopholes, do not provide citizens with easily accessible information, and lack stringent transparency policies. For example, the foundation said that in many states, trying to locate and view a lobbyist’s registration form is either impossible or logistically complex. In 33 states, lobbyists are not mandated to disclose their expenditures in a comprehensive fashion. The foundation ranked the states on how well each one performed on criteria such as reporting thresholds, document availability, and transparency on expenditures.

Federal:

Donors Descend on Schumer and Others in Debate on Iran
New York Times – Jonathan Weisman and Nicholas Confessore | Published: 8/12/2015

Approaching a vote on the Iran nuclear accord, tens of millions of dollars are flowing into ad campaigns and contributors leveraging access to undecided Democrats in the U.S. Senate. Donors said they did not believe any senator would vote based on threats to give or withhold money, and none admitted to giving such ultimatums. But with super PACs poised to dump tens of millions of dollars into Senate races next year, the passions of big contributors – and their ability to change a candidate’s fortunes – are a keenly felt undercurrent to the debate. Some of the biggest donors to super PACs also have strong opinions about the Iran deal and Israel’s security.

Lawrence Lessig Wants to Run for President – in a Most Unconventional Way
Washington Post – Philip Rucker | Published: 8/11/2015

Harvard professor Lawrence Lessig is launching an exploratory committee for the Democratic presidential nomination focused on his signature issue – reforming the nation’s campaign finance laws. “Jefferson’s truth, that all are created equal, has become Orwell’s meme, that some are more equal than others,” said Lessig. He said campaign finance reform is the first step toward addressing every other major issue in American politics. Lessig envisions a president that will serve with the singular goal of campaign finance reform, and step down once it is achieved to let the vice president serve out the remainder of the term. He hopes to crowd-fund $1 million by Labor Day.

New Challenge Filed to Party ‘Soft-Money’ Limits
Bloomberg BNA – Kenneth Doyle | Published: 8/4/2015

James Bopp renewed his attack on federal campaign finance law by filing suit on behalf of the Louisiana Republican Party that challenges restrictions on soft money contributions to political parties. BCRA bans soft money donations to national parties and restricts its use in federal elections by state and local parties. The limits are among the last BCRA provisions left intact following a series of court challenges to other campaign finance regulations. Last November, the Republican National Committee refused to provide an explanation when a similar case was abruptly dropped. But the move came shortly after the GOP won electoral victories that gave them majority control of both the House and Senate, and appeared to reflect a strategic shift away from such court challenges by at least some in the party.

From the States and Municipalities:

Alabama – Federal Court Upholds Alabama PAC-to-PAC Transfer Ban Law
Legal Newsline – Shaun Zinck | Published: 8/6/2015

A federal court upheld the constitutionality of Alabama’s law that bans transferring money from one PAC to another. The court found the state has a sufficiently important issue in preventing corruption or the appearance of corruption and the ban supports this interest, and the law was narrowly drawn so as to protect the state’s interest without being in violation of the First Amendment.

Florida – Trump, Gimenez Let Off Easy after Breaking Lobbying Law, Critics Say
FloridaBulldog.org – Francisco Alvarado | Published: 8/10/2015

Michael Muraswski is the advocate for the Miami-Dade Commission on Ethics and Public Trust, whose role is to prosecute people who break the county’s conflict-of-interest and ethics laws. Critics accuse Muraswski of giving a free pass to rich, powerful, and politically connected individuals who break the rules, including Donald Trump and county Mayor Carlos Gimenez.

Illinois – Illinois’ Corrupt Women
WUIS – Maureen Foertsch McKinney | Published: 8/1/2015

The term “Old Boys Network” is shorthand for the culture that breeds political corruption. A new study from the Paul Simon Public Policy Institute contends the term is gender-inaccurate. “Unsupervised, Ensnared, Relational, and Private: A Topology of Illinois’ Corrupt Women” takes a look at the women of the state who have been convicted for abusing their office. It challenges the notion that “female public officials have a deterrent effect on corruption” and examines the methods and motivations most common among female officials who have been convicted.

Michigan – Recordings: State rep asked aide to hide relationship
MLive.com – Chad Livengood | Published: 8/7/2015

Michigan Rep. Todd Courser distributed a fake e-mail that suggested he had sex with a male prostitute so he could hide his relationship with another state representative. Both lawmakers are Christian conservatives who frequently refer to their faith. Courser, a married father of four, said in an audio recording that the e-mail was intended to create a “complete smear campaign” of false claims so a public revelation about his relationship with state Rep. Cindy Gamrat would seem “mild by comparison.” The Detroit News interviews suggested the representatives used their taxpayer-funded offices to maintain and cover up their relationship.

Missouri – MEC Dismisses Complaint against Redmon
Missouri Times – Travis Zimpfer | Published: 8/11/2015

The Missouri Ethics Commission dismissed a complaint against state Rep. Craig Redmon over allegations he allowed lobbyist gifts for others to be reported as his. The commission said it found no inaccuracies in lobbyist expenditures for the past three years. The agency said it also did not find any expenditures that should have been reported to other public officials. Redmon at first was paraphrased by The Kirksville Daily Express and later told The Associated Press that he sometimes has told people to put under his name expenses that actually were made for others. He has since denied any such action. Redmon says he misspoke and was not paying attention to questions.

Montana – Campaign Finance Rules Released, Upcoming Public Hearings
Helena Independent Record – Alexander Deedy | Published: 8/6/2015

Montana Commissioner of Political Practices Jonathan Motl is putting his proposed campaign finance regulations out for public comment. A public hearing on the proposed rules will be held in Helena on September 2 and 3. Comments may also be submitted to the commissioner’s office. Motl has said the rules would allow corporate groups to spend money in campaigns, but they must say how much they are spending, where the money came from, and what it is being spent on. Motl must approve the final regulations before October 1.

Oklahoma – Democratic Party Sues Oklahoma Ethics Commission
The Oklahoman – Rick Green | Published: 8/11/2015

Oklahoma Democratic Party is suing the state Ethics Commission over new agency rules that prohibit any fundraising or distribution of election materials on state-owned property. Party officials argued the new rules are an improper restraint on free speech. The party had to call off a fund-raising activity planned for Oklahoma City Community College on July 25 after the commission “informally indicated an intention to enforce its rules,” the lawsuit said.

Pennsylvania – Montco DA Charges Attorney General Kane
Philadelphia Inquirer – Craig McCoy, Angela Couloumbis, and Jeremy Roebuck | Published: 8/6/2015

The Montgomery County district attorney filed criminal charges against Pennsylvania Attorney General Kathleen Kane in a convoluted tale of political maneuvering and retribution that threatens the career of an official who was seen until recently as one of her state’s rising stars. Kane has been accused of illegally giving grand jury documents to a newspaper in order to embarrass a critic, and then trying to cover up her actions with false testimony to a different grand jury. Kane has admitted to leaking material, but insisted it was not covered by grand jury secrecy requirements.

Rhode Island – Secretary of State Seeks Overhaul of RI Lobbying Statutes
The Associated Press – Jennifer McDermott | Published: 8/12/2015

Secretary of State Nellie Gorbea said she has questioned whether there are people and organizations lobbying in Rhode Island without registering to do so, either because they are ignoring the law or do not know about it. Because she does not have power to investigate, Gorbea now sends educational letters to people she thinks may be lobbying based on media reports. “Without proper legal investigative processes, you’re left with trying to be fairly broad in terms of outreach,” said Gorbea. She has suggested a new lobbying statute to provide a framework for investigations and hearings, and to grant her subpoena power. Lawmakers did not pass the bill during the 2015 session.

Texas – Texas Watchdog Group Calls another Political Titan to Account
New York Times – Manny Fernandez | Published: 8/6/2015

State Attorney General Ken Paxton, former Gov. Rick Perry, and ex-U.S. House Majority Leader Tom DeLay are all Texas officials who have been indicted while in office over the past decade. They also have one other thing in common: the complaints leading to their indictments were initiated by Texans for Public Justice, the low-budget, nonprofit watchdog group that Craig McDonald runs out of a basement office in Austin. Critics dispute McDonald’s claim that Texans for Public Justice is nonpartisan, saying it has used the courts to serve as a political attack machine against Republicans.

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.

August 13, 2015 • Written by Jim Sedor

Thursday News Roundup

Campaign Finance “First on CNN: Ted Cruz to release the names of his bundlers” by Theodore Schleifer for CNN “Jeb Bush Super PAC Donors Also Spend Big To Influence Washington” by Paul Blumenthal for Huffington Post Ohio: “State Rep. Ron […]

August 12, 2015 • Written by Jim Sedor

Wednesday Government Relations News

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News You Can Use Digest – August 14, 2015

Thursday News Roundup

Wednesday Government Relations News

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