September 20, 2016 • Written by Jim Sedor

Tuesday Lobbying and Campaign Finance News Update

Lobbying Tennessee: “Memphis Lawmaker Defends Decision to Accept Free Trip to Europe” by Jody Callaham for The Tennessean Campaign Finance “MLB a Little Late to the Game with FEC Filings” by Ashley Balcerzak for Center for Responsive Politics “Trump Shatters […]

September 19, 2016 • Written by Jim Sedor

Monday News Roundup

Lobbying “Chaka Fattah’s K Street Friends Stand by Him” by Sean McMinn for Roll Call “Nonprofit Seeks to Crowdfund Lobbying” by Megan Wilson for The Hill Campaign Finance “Whom to Vote for? Employees Tend to Follow Their Leader” by Andrew […]

September 16, 2016 • Written by Jonathan Spontarelli

NYCU Video Digest – September 16, 2016

See what’s happening in government relations this week with our Video Digest. Enjoy!

September 16, 2016 • Written by Jonathan Spontarelli

News You Can Use Digest – September 16, 2016

National: How the Sugar Industry Shifted Blame to Fat New York Times – Anahad O’Connor | Published: 9/12/2016 In 1967, the Sugar Research Foundation, the precursor to the Sugar Association, paid Harvard scientists about $50,000 in today’s money to discredit a […]

National:

How the Sugar Industry Shifted Blame to Fat
New York Times – Anahad O’Connor | Published: 9/12/2016

In 1967, the Sugar Research Foundation, the precursor to the Sugar Association, paid Harvard scientists about $50,000 in today’s money to discredit a link now widely accepted among scientists, that consuming sugar can raise the risk of cardiovascular disease. Instead, the industry and the scientists pinned the blame squarely, and only, on saturated fat. Even though the influence-peddling revealed in the documents dates back nearly 50 years, more recent reports show the food industry has continued to influence nutrition science.

Real-Time Election Day Projections May Upend News Tradition
New York Times – Nick Corasaniti | Published: 9/10/2016

Television networks and newspapers have traditionally agreed not to reveal the information they gather through exit polling to their audiences until polls close. Journalists keep that information to themselves, campaigns track the outcome with their own methodologies, and voters are left without access to information about how the election is going in real time. Now, a new company called VoteCastr is seeking to upend that reporting tradition, providing detailed projections of who is winning at any given time on Election Day in key swing states, and updating the information in real time. The plan is likely to cause a stir among those involved in reporting election results, who worry about both accuracy and an adverse effect on how people vote.

Federal:

Congressman Offers Unusual Defense in Ethics Probe
Center for Public Integrity – John Dunbar | Published: 9/13/2016

U.S. Rep. Roger Williams, a Texas Republican under investigation by the House ethics committee, says he did nothing wrong when he offered an amendment that would benefit car dealers, despite the fact that he himself is a car dealer. Members of Congress may not use their positions for personal financial benefit. But Williams asserted he did not profit from his actions. Instead, Williams revealed, he offered the amendment at the behest of a lobbyist. And the lobbyist – whose employer, the national Automobile Dealers Association, one of Williams’ top donors – sent along “proposed language” for the text of the amendment. There is no timetable for when the committee will rule. But regardless of what happens, Williams’ defense offers a rare glimpse at how business is often done in the Capitol.

How Donald Trump Retooled His Charity to Spend Other People’s Money
Washington Post – David Fahrenthold | Published: 9/10/2016

An investigation of the Donald J. Trump Foundation found it collects and spends money in a very unusual manner. For one thing, nearly all of its money comes from people other than Trump. In tax records, the last gift from Trump was in 2008. Since then, all of the donations have been other people’s money, an arrangement that experts say is almost unheard of for a family foundation. Trump then takes that money and generally does with it as he pleases. In many cases, he passes it on to other charities, which often are under the impression it is Trump’s own money. Foundation money has also been used for political purposes, which is against the law. Trump paid a penalty this year to the IRS for a 2013 donation in which the foundation gave $25,000 to a campaign group affiliated with Florida Attorney General Pamela Bondi.

How These Powerful Women Learned to Love Fundraising
Washington Post – Elise Viebeck | Published: 9/12/2016

Lawmakers frequently think fundraising is the worst part of their job, but it has become critical to their success as the cost of campaigns skyrockets. According to interviews with more than a dozen women in Congress, raising campaign funds poses unique challenges for women entering politics and seeking to rise through the ranks. Building a war chest is essential to female politicians as they work to get elected and to secure a seat at the leadership table, which involves both campaigning and fundraising for colleagues. Scholars have found women exhibit more negative attitudes toward fundraising and express more concern about attracting donors, to the point that it can deter some from running for office.

Lobbying Registrations Are Down, But The Influence Industry Is Flourishing
Washington Post – Catherine Ho | Published: 9/12/2016

This year, for the ninth consecutive time, the number of registered lobbyists in Washington, D.C. has fallen. The figure has dropped from about 14,800 in 2007 to 10,500 today. But ask virtually any member of K Street’s booming influence industry and they will tell you there are not fewer lobbyists, there are just fewer people labeling themselves as such. Eschewing the lobbyist label in favor of more palatable designations such as policy adviser, strategic counsel, or government relations adviser is not new. But it appears to have grown more prevalent during the two terms of President Obama, who put greater restrictions on lobbyists working in the executive branch than any other president.

From the States and Municipalities:

California – Jury Finds Azano Guilty on 36 Counts in Foreign Money Case
San Diego Union-Tribune – Dana Littlefield and Greg Moran | Published: 9/9/2016

A Mexican businessperson accused of making illegal campaign donations to candidates in San Diego’s 2012 mayoral race was convicted of 36 counts, including conspiracy to make political contributions by a foreign national. José Susumo Azano Matsura also was found guilty in federal court of making contributions in other people’s names and falsifying records. As a foreign citizen without legal status in the U.S., Azano was prohibited by law from donating to domestic campaigns. Although he lived in a Coronado Cays and both his wife and son were U.S. citizens, Azano did not have a green card or any immigration status that would allow him to financially support political campaigns in this country.

Florida – Judge Orders Campaign-Finance Question Put on Miami-Dade Ballot
Miami Herald – Douglas Hanks | Published: 9/9/2016

Circuit Court Judge William Thomas ordered that Miami-Dade voters get a chance to decide on new rules for campaign contributions, reversing a decision by county commissioners to keep the measure off the November ballot because of alleged legal flaws. The judge ruled the union-backed group behind the proposal to ban county contractors and their lobbyists from donating to county candidates followed all the required steps to secure a ballot slot. County lawyers appealed Thomas’ decision.

Michigan – House Candidate Steve Marino Retracts Claims from Secret Recordings
Detroit Free Press – Paul Egan | Published: 9/11/2016

Michigan House candidate Steve Marino disavowed ever picking up bar tabs for state lawmakers as a lobbyist after Democrats released audio recordings showing him making the claims. Marino, a Macomb County commissioner who was a registered lobbyist from 2013 to 2015, said that despite the way he described the events, they did not involve him personally. Instead, he said the stories were composites patched together from events he had witnessed or heard about over the years.

Missouri – Court: Missouri voters can decide if they want to bring back limits on campaign contributions
St. Louis Post-Dispatch – Kurt Erickson | Published: 9/13/2016

A state appeals court ruled that a measure re-imposing campaign contribution limits in Missouri can be placed on the November ballot. The initiative would ask voters whether they want to cap donations to individual candidates to $2,600 and limit contributions to a political party to $25,000. The referendum would ban the current practice of funneling money through different committees to hide the source of the money. Opponents say the initiative unfairly limits some classes of businesses and associations from giving money to campaigns. They vowed to appeal the ruling to the state Supreme Court.

Pennsylvania – Gas-Dealing Pa. Game Commission Official Ordered to Pay $75K Fine
Philadelphia Inquirer – Andrew Maykuth | Published: 9/13/2016

William Capouillez, a retired Pennsylvania Game Commission official, will pay a $75,000 fine over his side business. While he was director of the Bureau of Wildlife Habitat Management, Capouillez negotiated gas leases with drilling companies on behalf of private landowners while overseeing Game Commission leases with the same companies. He agreed to the fine in exchange for no further action by the state Ethics Commission, but the head of the ethics panel said Capouillez still faced possible criminal charges. The Ethics Commission said the $75,000 penalty represented just a portion of the amount Capouillez earned since 1996, when he began operating his business. But it said most of the alleged violations occurred before the agency’s five-year statute of limitations expired.

Tennessee – Jeremy Durham Expelled from Tennessee House in 70-2 Vote
The Tennessean – Joel Ebert and Dave Boucher | Published: 9/13/2016

The Tennessee House voted to expel state Rep. Jeremy Durham following allegations of widespread sexual harassment. The vote followed an attorney general’s investigation that detailed allegations of improper sexual contact with at least 22 women over the course of his four years in office. House Speaker Beth Harwell effectively quarantined Durham from other lawmakers, staff, and lobbyists in April, moving his office across the street and barring him from entering the main legislative area other than for official business. The move came after state Attorney General Herbert Slatery said Durham could pose a risk to “unsuspecting women” at the Capitol complex.

Virginia – Prosecutors Will Drop Case Against Former Va. Governor Robert McDonnell
Washington Post – Rachel Weiner and Matt Zapotosky | Published: 9/8/2016

The Justice Department decided to drop all charges against former Virginia Gov. Bob McDonnell following a U.S. Supreme Court ruling that vacated his original conviction on corruption charges. As a result, McDonnell’s legal ordeal effectively ends. The justices ruled McDonnell, convicted in 2014 and sentenced to two years in prison for helping a personal donor navigate the state bureaucracy, had not performed any official acts on the donor’s behalf. For federal prosecutors, the case carries grave implications. It likely will make it more difficult for them to use federal bribery, extortion, and fraud statutes against public officials.

Wisconsin – Report: Lead paint makers helped Gov. Walker
Milwaukee Journal Sentinel – Jason Stein and Patrick Marley | Published: 9/14/2016

A new report sheds new light on the relationships between Gov. Scott Walker and donors to the Wisconsin Club for Growth during the governor’s 2012 recall election. The Guardian U.S. sifted through 1,500 leaked documents from a probe into Walker’s campaign. The documents show $750,000 in donations to Wisconsin Club for Growth from Harold Simmons, the owner of one of the leading producers of lead used in paint until it was banned. Walked signed into law changes passed by the Republican-led Legislature that would have made companies like NL Industries effectively immune from compensation claims for lead paint poisoning. One document shows a lobbyist for NL Industries suggested the language that should be used to make the effective immunity retroactive. The phrase suggested by the lobbyist is the one that was added to an amendment, which was signed into law but later blocked by a federal court.

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.

September 15, 2016 • Written by Jim Sedor

Thursday News Roundup

Lobbying “Changing of the Guard at Lobbying Powerhouse” by Megan Wilson for The Hill Campaign Finance “Judge Hints Could Remand Disclosure Case to FEC” by Kenneth Doyle for Bloomberg BNA Missouri: “Court: Missouri voters can decide if they want to […]

September 14, 2016 • Written by Jim Sedor

Wednesday Government Relations News

Lobbying “How the Sugar Industry Shifted Blame to Fat” by Anahad O’Connor for New York Times “Lobbying Registrations Are Down, But The Influence Industry Is Flourishing” by Catherine Ho for Washington Post “Congressman Offers Unusual Defense in Ethics Probe” by […]

September 13, 2016 • Written by Jim Sedor

Tuesday Lobbying and Campaign Finance News Update

Lobbying Michigan: “House Candidate Steve Marino Retracts Claims from Secret Recordings” by Paul Egan for Detroit Free Press New York: “De Blasio’s Nonprofit Must Comply with Ethics Panel’s Subpoena, Judge Says” by J. David Goodman for New York Times Campaign […]

September 12, 2016 • Written by Jim Sedor

Monday News Roundup

Lobbying “Lobbyists Prepare for Clinton Win” by Megan Wilson for The Hill Campaign Finance “Prolific Donor Trump, Often Skirted Rules, Paid Fines” by Drew Griffin, David Fitzpatrick, and Tom LoBianco for CNN California: “Political Paradox? Prop. 59 Asks Californians to […]

September 2, 2016 • Written by Jonathan Spontarelli

Group Files First Amendment Challenge Over Alabama Ethics Class

The Marijuana Policy Project, a Washington, D.C. based nonprofit advocate for reforming marijuana laws, and the Institute for Justice filed a First Amendment challenge in federal court to Alabama’s training requirement for lobbyists. The training class is mandatory and held […]

September 2, 2016 • Written by Jonathan Spontarelli

Maine’s Ethics Commission Clarifies Contribution Exception

On August 31, 2016, the Commission on Governmental Ethics and Election Practices adopted a rule clarifying the “house party” exception from the definition of contribution. Following complaints the exception amounted to undisclosed contributions, the commission adopted a rule stating the […]

September 2, 2016 • Written by Jonathan Spontarelli

NYCU Video Digest – September 2, 2016

See what’s happening in government relations this week with our Video Digest. Enjoy!

August 30, 2016 • Written by Jim Sedor

Tuesday Lobbying and Campaign Finance News Update

Campaign Finance “How One Donor Is Profiting Off the Trump and Sanders Campaigns” by Russell Berman for The Atlantic Connecticut: “Inside the Political Fundraising Game” by Ken Dixon, Angela Carella, and Neil Vigdor for CT Post South Dakota: “Koch Brothers-Backed […]

August 29, 2016 • Written by Jim Sedor

Monday News Roundup

Lobbying Florida: “Miami-Dade Mayor Carlos Gimenez’s Son Rose to the Top Skirting Lobbying Rules, Critics Say” by Francisco Alvarado for FloridaBulldog.org Hawaii: “Just 2 Lobbyists Have Donated $650k to Hawaii Candidates in the Past 10 Years” by Jaelynn Grisso for […]

August 26, 2016 • Written by Jonathan Spontarelli

News You Can Use Digest – August 26, 2016

National: Inside Facebook’s (Totally Insane, Unintentionally Gigantic, Hyperpartisan) Political-Media Machine New York Times Magazine – John Herrman | Published: 8/24/2016 Facebook, in the years leading up to this year’s election, has not just become nearly ubiquitous among American internet users; it […]

National:

Inside Facebook’s (Totally Insane, Unintentionally Gigantic, Hyperpartisan) Political-Media Machine
New York Times Magazine – John Herrman | Published: 8/24/2016

Facebook, in the years leading up to this year’s election, has not just become nearly ubiquitous among American internet users; it has centralized online news consumption in an unprecedented way. According to the company, its site is used by more than 200 million people in the U.S. each month. A 2016 Pew study found 44 percent of Americans read or watch news on Facebook. Its algorithms pick text, photos, and video produced and posted by established media organizations large and small, local and national, openly partisan or nominally unbiased. But there is also a new and distinctive sort of operation that has become hard to miss: political news and advocacy pages made specifically for Facebook, uniquely positioned and cleverly engineered to reach audiences exclusively in the context of the news feed.

Study: Outside groups, secret money far more prominent than ever before
Center for Responsive Politics – Robert Maguire | Published: 8/24/2016

A new study shows outside groups that can raise and spend unlimited money, sometimes without disclosing the sources of their funds, make up a larger portion of election spending than at any point in the last 16 years. The two main proponents of the growth in outside groups’ overall share of election advertising are super PACs and politically active nonprofits. The former only came into existence in 2010, and since then has come to dominate the field. Politically active nonprofits, on the other hand, have been active in every cycle going back to 2000, but what may be the same in quality is not the same in quantity. These groups are the driving force behind the growth in “dark money” in elections.

Federal:

Foundation Ties Bedevil Hillary Clinton’s Presidential Campaign
New York Times – Amy Chozick and Steve Eder | Published: 8/20/2016

The Bill, Hillary and Chelsea Clinton Foundation has thrived on the generosity of foreign donors who gave hundreds of millions of dollars to the charity. But as Hillary Clinton seeks the White House, the funding has become an Achilles’ heel for her campaign and, if she is victorious, potentially her administration. With Mrs. Clinton facing accusations of favoritism toward foundation donors during her time as secretary of state, the organization will no longer accept corporate contributions should she win in November. But while the move did not resolve the question of how her administration would handle longtime donors seeking help from the U.S., or whose interests might conflict with the country’s own.

The Lobbying Law at the Center of Manafort’s Trouble with Ukraine
The Hill – Megan Wilson | Published: 8/21/2016

Paul Manafort resigned as Donald Trump’s campaign chairperson after he had been ensnared in a wide-ranging Justice Department investigation about U.S. connections to the alleged corruption by former Ukrainian President Viktor Yanukovych. Questions have been swirling about Manafort’s representation of Yanukovych for years, but recent reports have intensified the drum beats about whether he acted unlawfully as a “foreign agent” by lobbying for a foreign leader without registering that activity. The recent revelations, if true, suggest Manafort could face legal troubles stemming from violation of a World War II-era lobbying statute, the Foreign Agents Registration Act.

From the States and Municipalities:

California – Little-Regulated Accounts Offer a Path to Political Clout in Sacramento
Marin Independent Journal – Jessica Calefati and Kaitlyn Landgraf (Bay Area News Group) | Published: 8/20/2016

Ballot measure committees, the accounts that are supposed to promote or oppose state and local initiatives, are in practice paying for California lawmakers’ consultants and polling firms, new suits, and trips to Mexico. And the money for the politicians’ perks comes in the form of five-figure donations from the same special interests that state rules were intended to curtail. Under the vague language of the law, elected officials can legally operate these committees, but the way they are doing it appears to bend state laws and rules governing how the money may be spent. No state agency adequately monitors the situation. Of the nearly $3 million spent by these committees since 2013, only one dollar out of every four dollars was used to help pass or defeat measures that actually made it to the ballot.

Connecticut – Malloy Releases Funds Withheld from CT Watchdog Agencies
CT Mirror – Keith Phaneuf | Published: 8/19/2016

After criticism from lawmakers and good government groups, Connecticut Gov. Dannel Malloy’s administration relented and restored the $183,000 they had proposed to cut from three watchdog agencies. Following a meeting with the heads of the Office of State Ethics, Freedom of Information Commission, and State Elections Enforcement Commission, the Office of Policy and Management announced it would restore the funding. Office of Policy and Management Secretary Ben Barnes steered clear of acknowledging the budget holdbacks would have violated a 2004 law that prohibits the executive branch from unilaterally cutting the three watchdog agencies. Carol Carson, executive director of the Office of State Ethics, said the agencies are committed to prudently managing their budgets and whenever possible return money at the end of the year to the general fund.

Florida – On 2nd Try, Miami-Dade Commissioners Approve Petition Count
Miami Herald – Douglas Hanks | Published: 8/22/2016

Miami-Dade County commissioners agreed to start counting nearly 130,000 signatures tied to a proposed ballot measure on new campaign finance rules, but warned they still might halt the proposal over concerns raised by county attorneys. Only about 52,000 valid signatures are needed to win a spot on the November ballot. The proposed rules would impose a broad package of restrictions against campaign donations by vendors and lobbyists, prime sources of financial support for county officeholders.

Massachusetts – Donors Behind Charter Push Keep to the Shadows
Boston Globe – Mark Levenson | Published: 8/20/2016

A new $2.3 million ad boosting the expansion of charter schools in Massachusetts lists the campaign’s top five donors on screen, in accordance with state law. But the bland names, including Strong Economy for Growth and Education Reform Now Advocacy, give no hint of who is writing the checks. Four of the five donors to the pro-charter committee are nonprofit groups that do not, under state law, have to disclose their funders, allowing the individuals backing the effort to remain anonymous. The cloak of secrecy surrounding the financing of what could be the most expensive ballot campaign in state history has frustrated election officials and underscored the proliferation of untraceable money in political races across the country.

Missouri – Judge Tosses Out Effort to Keep Missouri Campaign Contribution Limits Off Ballot
St. Louis Post-Dispatch – Kurt Erickson | Published: 8/25/2016

Cole County Circuit Court Judge Patricia Joyce rejected an attempt to remove a voter initiative from the November 8 ballot that would impose limits on campaign contributions in Missouri for the first time since 2008. Attorney Chuck Hatfield said in court that the initiative unfairly limits some classes of businesses and associations from giving money to campaigns, but Joyce ruled the proposal mirrors federal law and is not unconstitutional. The decision will be appealed.

New York – Cuomo Signs Ethics Bill, with Few Cheers
Albany Times Union – Chris Bragg | Published: 8/24/2016

New York Gov. Andrew Cuomo signed legislation that reforms the state’s lobbying, ethics, and campaign finance laws. But watchdog groups criticized the bill for what they say is a failure to address conditions that have fueled some of Albany’s corruption cases in recent years. The new law includes restrictions on independent expenditure groups intended to reduce coordination with a candidate’s campaign. Another provision requires issue-oriented lobbying groups, designated as 501(c)(4) organizations, that spend more than $15,000 in a year on lobbying to disclose donors who give more than $2,500. The previous limits had been $50,000 and $5,000.

New York – NY State Ethics Watchdog Investigating Nonprofit with Ties to Large Corporate Political Donor
Nonprofit Quarterly – Larry Kaplan | Published: 8/23/2016

The New York Joint Commission on Public Ethics is looking into the nonprofit Pledge 2 Protect, created in 2013 to fight a marine waste transfer station on Manhattan’s Upper East Side. By law, nonprofits like Pledge 2 Protect must, if they spend more than $50,000 on lobbying, report the names of donors who contribute more than $5,000. Those amounts would be cut in half under a law awaiting Gov. Andrew Cuomo’s signature. Almost $700,000 made its way to Pledge 2 Protect the year it was formed with no indication of where the money really came from. The money was given first to a law firm, then to the group, so the only name that had to be disclosed was that of the law firm, not the actual donors. Among the opponents of the waste transfer station was Glenwood Management, a real estate firm that figured prominently in the corruption case against former Assembly Speaker Sheldon Silver.

Tennessee – Power Opens Door to Sexual Harassment
The Tennessean – Dave Boucher and Joel Ebert | Published: 8/21/2016

Powerful institutions and harassment at times go hand-in-hand. State Capitols are sometimes hotbeds of sexual harassment themselves. Most Legislatures are largely male, part-time, and require members to travel away from home, creating a fraternity atmosphere. In Tennessee, where 22 out of 132 lawmakers are women and 85 percent are white, the political culture has included limited policies and safeguards, leaving women with few options.

Wisconsin – Ethics Commission Will Be Able to Make Political Donations
Minneapolis Star Tribune – Scott Bauer (Associated Press) | Published: 8/23/2016

Members of the Wisconsin Ethics Commission will be able to make political donations. The commission voted to continue with the current practice allowing them to give to candidates and campaign committees. Nothing in state law bars Ethics Commission members from donating to the very politicians they are regulating. Commission members are partisan appointees, unlike their predecessors on the Government Accountability Board who were judges and prohibited under the law from donating.

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.

Tuesday Lobbying and Campaign Finance News Update

Monday News Roundup

NYCU Video Digest – September 16, 2016

News You Can Use Digest – September 16, 2016

Thursday News Roundup

Wednesday Government Relations News

Tuesday Lobbying and Campaign Finance News Update

Monday News Roundup

Group Files First Amendment Challenge Over Alabama Ethics Class

Maine’s Ethics Commission Clarifies Contribution Exception

NYCU Video Digest – September 2, 2016

Tuesday Lobbying and Campaign Finance News Update

Monday News Roundup

News You Can Use Digest – August 26, 2016

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