August 2, 2016 • Written by Jim Sedor

Tuesday Lobbying and Campaign Finance News Update

Lobbying Massachusetts: “Mass. Insiders Turn to Lobbying Careers” by Mark Arsenault and Andrew Ryan for Boston Globe Campaign Finance “D.C. Circuit to Hear Challenge to Contribution Limits” by Kenneth Doyle for Bloomberg BNA “Koch Network Seeks to Defuse Donor Frustration […]

August 1, 2016 • Written by Jim Sedor

Monday News Roundup

Campaign Finance “After Lying Low, Deep-Pocketed Clinton Donors Return to the Fore” by Nicholas Confessore and Amy Chozick for New York Times California: “California Treasurer Cracks Down on Pay to Play” by Kyle Glazier for The Bond Buyer California: “Feds […]

July 29, 2016 • Written by Jonathan Spontarelli

News You Can Use Digest – July 29, 2016

Federal: A Worry if Clinton Wins: An idle ex-president in the White House New York Times – Patrick Healy | Published: 7/26/2016 It is not clear how Bill Clinton would function as America’s first gentleman. Advisers to Hillary Clinton said she […]

Federal:

A Worry if Clinton Wins: An idle ex-president in the White House
New York Times – Patrick Healy | Published: 7/26/2016

It is not clear how Bill Clinton would function as America’s first gentleman. Advisers to Hillary Clinton said she has not yet decided if she will offer her husband a formal role if elected but noted he will cease working for the Clinton Foundation, would not be a regular at Cabinet meetings, and will do what is asked of him. Beyond that, however, details are scant. The steps that Clinton aides are planning to shape his new life do little to address a potentially thornier problem: historically, when Bill Clinton does not have a job to do, he gets into trouble.

Democrats Discreetly Turn Attention to Presidential Prospects of the Future
New York Times – Michael Shear | Published: 7/26/2016

On the main stage at the Wells Fargo Center and along the sidelines of the Democratic National Convention, more than a dozen senators, mayors, governors, cabinet members, and state lawmakers are carefully peeking past this year’s presidential election to 2020 or 2024 as they work ballrooms full of delegates, donors, and activists who would be critical to the pursuit of a national campaign. Compared with Republicans, Democrats have seen fewer of their young members rise to top positions in Washington, D.C., which can be a springboard to the White House.

DNC Turmoil Confirms Warnings: Hackers are targeting campaigns
Politico – Eric Geller | Published: 7/24/2016

The downfall of Democratic National Committee Chairperson Debbie Wasserman Schultz marks a groundbreaking moment that cybersecurity experts have long seen coming: hackers are making a significant impact on a major U.S. political campaign. Cybersecurity experts have warned for years that campaigns and political parties are woefully weak in securing their data, despite the wealth of sensitive information they carry in their computer networks and email accounts. It is an ideal scenario for all kinds of cyber wrongdoers – foreign adversaries trying to swing elections, intelligence agencies seeking information on future officials, hacktivist groups looking to grab attention, and black market hackers trying to make a quick buck.

Donald Trump Calls on Russia to Find Hillary Clinton’s Missing Emails
New York Times – Ashley Parker and David Sanger | Published: 7/27/2016

Donald Trump dared a foreign government to commit espionage on the U.S. to hurt his rival, smashing yet another taboo in American political discourse and behavior. “Russia, if you’re listening, I hope you’ll be able to find the 30,000 emails that are missing,” Trump said, referring to deleted emails from the private account Hillary Clinton used as secretary of State. “I think you’ll probably be rewarded mightily by our press.” The comments immediately drew widespread attention because they lend the impression that Trump is actively encouraging another country to commit a cybercrime against the U.S. to directly affect the presidential election. If the emails are hacked and Trump wins, it also could make him appear beholden to foreign interests.

For Special Interests, the Real Party Is Outside the Convention
Center for Public Integrity – Carrie Levine and Dave Levinthal | Published: 7/22/2016

A Rick Springfield concert at the Republican National Convention was billed as “a tribute to the House Republican Whip Team” and was to benefit charity, even though there was no admission fee. During the convention, dozens of organizations sponsored such events, all with an interest in gaining access to lawmakers and power brokers. The gatherings are almost all crafted to fit into exemptions in gift and ethics rules that allow members of Congress to come to “widely attended events” or charitable fundraisers. “These exemptions very quickly become major loopholes to allow lobbyists and others to put on events for officeholders and allow officeholders to go to them for free,” said Lawrence Noble, general counsel for the Campaign Legal Center.

In Hacked D.N.C. Emails, a Glimpse of How Big Money Works
New York Times – Nicholas Confessore and Steve Eder | Published: 7/25/2016

The leaked documents from the Democratic National Committee included thousands of emails exchanged by party officials and fundraisers, revealing in rarely seen detail the elaborate, ingratiating, and often bluntly transactional exchanges necessary to collect hundreds of millions of dollars from the party’s wealthy donors. The emails capture a world where seating charts are arranged with dollar totals in mind, where a White House celebration of gay pride is a thinly disguised occasion for rewarding wealthy donors, and where physical proximity to the president is the most precious of currencies.

IRS Gives Opposite Rulings to Convention Committees
Bloomberg BNA – Kenneth Doyle | Published: 7/25/2016

When Cleveland’s host committee for the Republican National Convention applied for charitable tax-exempt status nearly two years ago, approval by the IRS came in just 12 days. Philadelphia’s host committee for the Democratic National Convention was not so lucky. While neither the committee nor the IRS will discuss details, it is clear that approval of the Philadelphia committee’s request for the same charitable tax-exempt status did not come quickly and ultimately was denied. The Philadelphia host committee reportedly is trying to work around fundraising problems caused by IRS disapproval of its exempt status. The full impact of the IRS ruling is not yet clear, partly because the host committee is asking a state court to keep information about its donors under wraps until a federal disclosure report must be filed with the FEC two months after the convention ends.

Lobbyists Celebrate Democratic Party’s New Embrace at Convention
Time – Jay Newton-Small | Published: 7/26/2016

Heather Podesta wore a scarlet letter “L” to the last two Democratic National Conventions, a not so subtle protest over Barack Obama’s ban on lobbyists like her donating money to his cause. Podesta’s scarlet letter is gone this week because Hillary Clinton and the Democratic National Committee have lifted the ban. Podesta is just one of a legion of lobbyists coming out of the proverbial closet this convention, free to raise money, support candidates, and be proud of it for the first time in nearly a decade. Campaign finance reformers have watched the change happen with dismay.

Report: FEC leaders, managers share blame for horrid morale
Center for Public Integrity – Dave Levinthal | Published: 7/26/2016

The office of the FEC’s inspector general for months has conducted employee surveys and interviews in hopes of answering a nagging question: why, specifically, is agency morale so consistently poor? Investigators place the most blame on the six commissioners: three Democratic appointees and three Republican appointees who have regularly criticized one another and frequently deadlocked on high-profile political issues before them. The report came about in response to separate study that ranked FEC staff morale second to last among 41 small federal agencies studied.

From the States and Municipalities:

Alaska – Oil Lobbyist Treated Legislator to Meal after Oil Tax Vote
Alaska Dispatch News – Nathaniel Herz | Published: 7/25/2016

Alaska Rep. Mike Hawker accepted a $78 dinner from an oil company lobbyist the same day Hawker went to Juneau for his first vote in two months, casting the deciding vote on an oil tax bill criticized as being too industry friendly. The meal was purchased by ConocoPhillips lobbyist Michael Hurley on June 6, the same day House Bill 247 was approved 21-to-19. Hawker’s presence was essential because the Alaska Constitution requires 21 votes for passage of a bill. Hawker is suffering from terminal cancer and had not attended a floor session since early April.

California – California Treasurer Cracks Down on Pay to Play
The Bond Buyer – Kyle Glazier | Published: 7/27/2016

California Treasurer John Chiang announced that municipal finance firms seeking state business will be required to certify they will make no contributions to local bond election campaigns. State officials are concerned with “pay-to-play” tactics in which bond counsel, underwriters, and financial advisors are offering to fund or provide campaign services in exchange for contracts to issue the bonds once they are approved by voters. The new policy applies to firms and their employees, and includes both cash and-in kind contributions made either directly or through third parties. Firms that fail to make the pledge will be removed from the state’s official list of acceptable vendors and barred from participating in state-issued bonds.

California – California Wants People to Prove They Are Not Lobbyists
KPCC – Alison Noon (Associated Press) | Published: 7/21/2016

The California Fair Political Practices Commission approved a regulatory change aimed at encouraging so-called shadow lobbyists to disclose their efforts to influence legislation. Lobbyists are required to register with the state if the amount they make for communicating with government officials reaches $2,000 in any given month. The rule change permits investigators to demand evidence about lobbyists’ compensation and financial gain related to contact with government officials. It suggests that suspected unregistered lobbyists testify or provide bills, receipts, or other records to establish their compensation was not used to get access to lawmakers or dine and entertain them.

Texas – City Wins Lawsuit Despite Appearance of Loss
Austin Monitor – Jo Clifton | Published: 7/22/2016

A federal judge ruled a blackout period banning candidates in Austin from fundraising outside of the six months before Election Day is unconstitutional. U.S. District Court Judge Lee Yeakel also overturned the dissolution requirements governing candidates’ left-over campaign money. The decision upheld the $350 individual cap on donations as well as the aggregate limit on contributions from persons who live outside the city.

Virginia – As Pick for No. 2, Tim Kaine Sees Gifts Come Under Scrutiny
New York Times – Eric Lipton and Steve Eder | Published: 7/24/2016

With U.S. Sen. Tim Kaine’s selection as Hillary Clinton’s vice-presidential running mate, the gifts he received in the four years he served as Virginia’s chief executive and his time as lieutenant governor before that are certain to be cited by his Republican critics as a sign that Kaine is not as squeaky clean as he portrays himself. An examination by The New York Times of archival email traffics from Kaine’s tenure as governor shows he received gifts, in some cases, around the same time he and his staff were considering official government requests from these donors.

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.

July 27, 2016 • Written by Jim Sedor

Wednesday Government Relations News

Lobbying Alaska: “Oil Lobbyist Treated Legislator to Meal after Oil Tax Vote” by Nathaniel Herz for Alaska Dispatch News Campaign Finance “In Hacked D.N.C. Emails, a Glimpse of How Big Money Works” by Nicholas Confessore and Steve Eder for New […]

July 22, 2016 • Written by Jonathan Spontarelli

News You Can Use Digest – July 22, 2016

National: Accused of Sexual Harassment, Roger Ailes Is Negotiating Exit from Fox New York Times – John Koblin and Jim Rutenberg | Published: 7/19/2016 The Murdoch family is moving to oust Roger Ailes, the chairperson of Fox News Channel, after multiple […]

National:

Accused of Sexual Harassment, Roger Ailes Is Negotiating Exit from Fox
New York Times – John Koblin and Jim Rutenberg | Published: 7/19/2016

The Murdoch family is moving to oust Roger Ailes, the chairperson of Fox News Channel, after multiple women have accused him of sexual harassment. Ailes and Fox News’s parent company are in the advanced stages of discussions that would lead to his departure, said Susan Estrich, one of Ailes’s lawyers. His exit would be a humbling and startlingly sudden fall from power for a man who started Fox News from scratch 20 years ago and built it into a top-rated cable news network. Along the way, Ailes, a former Republican operative, established Fox News as the leading media platform for conservative politics.

Federal:

Behind Melania Trump’s Cribbed Lines, an Ex-Ballerina Who Loved Writing
New York Times – Jason Horowitz | Published: 7/20/2016

Meredith McIver, a speechwriter for Donald Trump’s private company, took the blame for apparent plagiarism in Melania Trump’s speech at the Republican National Convention. McIver, the co-author of several books with Donald Trump, said as she and Ms. Trump were preparing her speech, Ms. Trump mentioned she admired Michelle Obama and read to McIver parts of the first lady’s 2008 speech at the Democratic convention. McIver said she had inadvertently left portions of the Obama speech in the final draft.

Donald Trump May Break the Mold, but He Fits a Pattern, Too
New York Times – Alexander Burns | Published: 7/21/2016

Donald Trump’s candidacy has upended the Republican Party, baffling and then vanquishing opponents who dismissed him as a celebrity sideshow. Even now, many prefer to treat his success as a freak occurrence without precedent in U.S. history. But if Trump will be the first figure of his kind to claim a presidential nomination, his candidacy falls within an American tradition of insurgent politics that has found expression in other moments of social and economic rupture, often attaching itself to folk heroes from the world of big business or the military.

G.O.P.’s Moneyed Class Finds Its Place in New Trump World
New York Times – Nicholas Confessore | Published: 7/21/2016

Donald Trump has attacked lobbyists, disparaged big campaign donors, and railed against the party’s establishment. But at the Republican National Convention, beyond the glare of television cameras, the power of the permanent political class seemed virtually undisturbed. In Cleveland, even some of those who had worked against Trump’s candidacy now saw opportunity. In dozens of private receptions, they inspected their party’s new Trump faction with curiosity and hope. There were spheres of influence to carve out, money to raise and money to be made, whether or not Trump ended up in the White House. There were new friends to make and old relationships to nurture.

The Man Behind Citizens United Gears Up for Hillary Clinton Attacks
USA Today – Fredreka Schouten | Published: 7/20/2016

Political operative David Bossie, as much as any single person, is responsible for the nearly unrestricted flow of money pouring into the 2016 presidential campaign. He runs the conservative advocacy group Citizens United, and his attempt to distribute his anti-Hillary Clinton movie gave rise to the U.S. Supreme Court’s 2010 blockbuster decision, which allowed corporations and unions to spend unlimited amounts to influence elections. Bossie is the new leader of the Defeat Crooked Hillary PAC, which plans to merge cutting-edge technology and old-fashioned opposition research in a push to sink the Democrats’ presumptive presidential nominee. At the same time, Bossie is moving closer to the inner circle of the Republican Party.

Why We Don’t Know Who’s Funding the Republican Convention
Time – Haley Sweetland Edwards and Chris Wilson | Published: 7/17/2016

The Republican National Convention in Cleveland is the first time in four decades that a major political party’s nominating convention is underwritten nearly exclusively with private cash. The near total dependence on private money is the direct result of a series of recent federal rule changes. The new rules, which passed with little fanfare in 2014, allow individual donors to give ten times more to national parties they could in 2012. They also fail to close a loophole allowing corporations, lobbying firms, super PACs, and special interest groups, which are formally prohibited from giving to the parties’ conventions, to give unlimited amounts through special, nonprofit committees, which are not bound by normal disclosure rules. As a result, the public will not find out who the major corporate funders are to either the Republican or Democratic conventions until sometime in the fall.

From the States and Municipalities:

Colorado – Denver Campaign Finance Reform Proposal Pulled from Ballot
Denver Post – Claire Cleveland | Published: 7/18/2016

A proposed ballot initiative in Denver that would reign in big campaign contributions and set up a public financing system for city elections has been withdrawn by its backers. The measure was challenged by David Kenney, a political consultant and lobbyist. The challenge alleges the initiative is so wide-ranging that it violates a single-subject rule for ordinances and says the ballot title approved by the Denver Elections Division inadequately summarizes the measure and includes words intended to sway voters.

Kentucky – Corporations Can Now Make Political Donations in Kentucky
WFPL – Ryland Barton | Published: 7/18/2016

The Kentucky Registry of Election Finance agreed to the final judgment in a lawsuit challenging the unequal treatment of unions and corporations under the state’s campaign finance law. A judge struck down the law that allowed only unions, not corporations, to give money directly to state and local political candidates, and to also support candidates through union-funded PACs. Now, both corporations and unions will be allowed to donate to PACs, and neither will be allowed to make direct contributions to candidates. The new law will affect state and local candidates, not candidates for federal office.

Missouri – Who Made the Biggest Political Donation in Missouri History? Ask After the Election
St. Louis Post-Dispatch – Kevin McDermott | Published: 7/19/2016

The super PAC SEALs for Truth gave the largest political contribution to an individual candidate in Missouri history when it donated $1.975 million to gubernatorial candidate Eric Greitens, who is a former Navy SEAL. The group received the $1.975 million between July 1 and July 18, when it gave the cash to Greitens. But it does not have to publicly reveal where that money originally came from until later in the year, well after the state’s August 2 primaries are over. Missouri election officials have said they have no way to restrict money donated from federal PACs to state candidates, as long as it is disclosed publicly.

New Jersey – David Samson, Ally of Christie, Admits to Bribery Over Airline Route
New York Times – Patrick McGeehan | Published: 7/14/2016

David Samson, the embattled former chairperson of the Port Authority of New York and New Jersey, pleaded guilty to using his clout to coerce one of the nation’s largest airlines to accommodate his desire for a regularly scheduled, non-stop flight to his South Carolina summer home. Samson, a well-connected lawyer and one-time New Jersey attorney general, pleaded guilty to one charge of bribery for accepting a benefit of more than $5,000 from United Airlines. At the same time, United – which was not criminally charged – agreed to pay a fine of $2.25 million and pledged to reform to its compliance program.

Ohio – In Cleveland’s Public Square, Rights Are Exercised. Loudly.
New York Times – Dan Barry | Published: 7/19/2016

While the Republican National Convention was being held at Quicken Loans Arena in Cleveland, there was a parallel national conversation in a 10-acre downtown commons called Public Square, where people have colorfully debated one another since before Ohio was a state. The congregation in the square included protesters and counter-protesters, young capitalists and socialists, delegates away from home and locals without a home, a man with a pet iguana and a man with a semiautomatic rifle. “The Hyde Park of Cleveland,” said John Grabowski, a history professor at Case Western Reserve University and a Cleveland native. “[People] would come to vent. But they would also come to celebrate.”

Pennsylvania – Kathleen Kane’s Staff Gives Job Interview to Son of Key Prosecution Witness Against Her
Allentown Morning Call – Steve Esack | Published: 7/20/2016

Just three weeks before Pennsylvania Attorney General Kathleen Kane’s criminal trial is scheduled to begin, her top aides interviewed the son of a key witness against her for a job in her office, raising questions about a conflict-of-interest and inappropriate influence. Matthew Peifer was interviewed for a position in the Child Predator Unit, which is headed by Kane’s twin, Ellen Granahan. He is the son of David Peifer, a onetime Kane confidant and a top agent in the attorney general’s office who last year agreed to cooperate with prosecutors in exchange for immunity. Kane is facing charges for allegedly leaking secret grand jury information to the media and lying when asked about it under oath.

Rhode Island – Ethics Commission Adopts Moratorium on Complaints for 90 Days before General Election
Rhode Island Public Radio – Ian Donnis | Published: 7/19/2016

The Rhode Island Ethics Commission voted to adopt a moratorium on outside ethics complaints in the 90 days before a general election. The moratorium is intended to discourage politically motivated complaints, although the panel reserves the right to launch its own investigations, said commission attorney Jason Gramitt. Voters will decide this November if they want to restore the Ethics Commission’s conflict-of-interest oversight over the General Assembly.

Tennessee – The Culture That Allowed Durham to Thrive
The Tennessean – Dave Boucher and Joel Ebert | Published: 7/17/2016

Tennessee House Speaker Beth Harwell says nothing could have stopped state Rep. Jeremy Durham, who used his nearly five years in elected office to methodically harass or sexually take advantage of at least 22 women. “I don’t think anything could have avoided what happened; he violated our current policy and I think he would violate any policy,” Harwell said. Many lawmakers, staffers, and lobbyists knew about his predatory misbehavior for years but did not speak up to stop him, according to the findings of an attorney general’s investigation. The culture at the Capitol emphasizes deals between lawmakers, lobbyists, and staff over alcohol, late nights, and loyalty to a fault. It is also a culture where many female lobbyists, legislative staffers, and lawmakers expect to have to fend off sexual advances by some men at the statehouse.

Utah – Prosecutors Seek to Drop All Charges Against Ex-A.G. Shurtleff; Swallow Prosecution Proceeding
Salt Lake Tribune – Jennifer Dobner | Published: 7/18/2016

Prosecutors moved to drop “pay-to-play” charges against former Utah Attorney General Mark Shurtleff, a surprise retreat more than two years after state investigators arrested him and his successor, John Swallow, citing a pattern of favors and gifts traded with a cast of questionable businesspersons. Davis County Attorney Troy Rawlings said in court documents that a recent U.S. Supreme Court decision overturning the bribery conviction of former Virginia Gov. Bob McDonnell narrowed what could be charged in influence-peddling cases.

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.

July 21, 2016 • Written by Jim Sedor

Thursday News Roundup

Lobbying “Lobbyists Have Raised $7 Million for Hillary Clinton. For Trump? Zero” by Catherine Ho for Washington Post South Carolina: “Departing S.C. House Ethics Committee Chairman Accepts Government Affairs Consulting Job” by Maya Prabhu for Charleston Post and Courier Campaign […]

July 20, 2016 • Written by Jim Sedor

Wednesday Government Relations News

Lobbying “UFC’s Payday Comes at the End of an Odyssey through Statehouses” by Richard Sandomir and Ken Belson (New York Times News Service) for Las Vegas Sun New York: “De Blasio’s Nonprofits: Were they worth it?” by Samar Khurshid for […]

July 18, 2016 • Written by Jim Sedor

Monday News Roundup

Lobbying New York: “Jackson Lewis Lands 39-Member Wilson Elser Lobbying Group” by Christine Simmons for New York Law Journal Campaign Finance California: “Commerce Councilwoman Faces State’s Largest-Ever Penalty Against a Local Elected Official” by Adam Elmahrek for Los Angeles Times […]

July 8, 2016 • Written by Jonathan Spontarelli

News You Can Use Digest – July 8, 2016

Federal: Can Super PACs Be Put Back in the Box? Washington Post – Matea Gold | Published: 7/6/2016 A powerhouse legal team representing a bipartisan group of members of Congress and candidates is unleashing a new effort to overturn the case […]

Federal:

Can Super PACs Be Put Back in the Box?
Washington Post – Matea Gold | Published: 7/6/2016

A powerhouse legal team representing a bipartisan group of members of Congress and candidates is unleashing a new effort to overturn the case that gave rise to super PACs, part of a new strategy to rein in the big money that has poured into campaigns since 2010. They are targeting a case decided by U.S. Court of Appeals for the District of Columbia Circuit in 2010: SpeechNow.org v. FEC. That decision permitted a conservative group to raise money beyond the contribution limits placed on traditional PACs because it planned to spend its funds independently of a candidate or party. In doing so, the appellate court paved the way for new political vehicles, later dubbed super PACs for their ability to accept unlimited amounts from individuals and corporations.

F.B.I. Director James Comey Recommends No Charges for Hillary Clinton on Email
New York Times – Mark Landler and Eric Lichtblau | Published: 7/5/2016

FBI Director James Comey said his agency is recommending that no charges be brought against Hillary Clinton in connection with her email use while secretary of State. “No reasonable prosecutor” would bring such a case, Comey said. But although the FBI is not recommending charges, Comey did strongly criticize Clinton’s handling of classified information in her email, calling is “extremely careless.” The announcement comes three days after FBI agents and Justice Department officials interviewed Clinton. The FBI has been seeking to determine whether Clinton or any of her aides had mishandled classified information in connection with her email. The inspector general of the intelligence agencies had said the emails contained information that was classified at the time they were sent but were not marked classified, and the information should never have been sent on an unclassified system.

Koch Brothers’ Plight Likened to That of Civil Rights Workers in the 1950s
Center for Public Integrity – John Dunbar | Published: 7/5/2016

Charles and David Koch and civil rights pioneers have faced threats and harassment from those who disagree with their views, and each is entitled to privacy when it comes to disclosing certain kinds of information to the government, a federal judge ruled. But the decision has been controversial; comparing the travails of billionaires to the violent threats endured by civil rights workers in the 1950s is more than a stretch, say some of those familiar with the case – it is offensive. The case represents just the latest front in an ongoing battle being waged by a range of mostly conservative groups attempting to keep donors to political nonprofits hidden from view. Many of the legal battles revolve around interpretation of a crucial civil rights case from 1958: NAACP v. Alabama.

Lockheed’s Top Government Affairs Official Not Registered as Lobbyist
Politico – Austin Wright and Jeremy Herb | Published: 7/3/2016

The top government affairs official at Lockheed Martin, the world’s largest defense contractor, has not registered as a lobbyist. The company maintains that Robert Rangel, its senior vice president for government affairs since early last year, is not required to disclose his efforts to influence Congress and the executive branch. He does not meet all the legal requirements outlined in the law that governs lobbying disclosures, Lockheed says, including the percentage of his time he actually spends trying to influence government officials. His decision not to register, however, goes against both company precedent and the practices of other top defense firms.

Special Interests Look to Influence Political Conventions – Discreetly
Center for Public Integrity – Carrie Levine | Published: 7/7/2016

Corporations, unions, and other special interests will spend tens of millions of dollars to bankroll festivities at the Democratic and Republican national conventions. Some high-profile companies and individual donors are scaling back on giving to the host committees as they want to distance themselves from controversies surrounding Donald Trump. Meanwhile, many special interests will participate in convention-related activities, but they have become more creative in how they influence conventioneers, or are refusing to discuss their convention plans. “They want to show up, they want to rub elbows with everyone at the conventions, they just don’t want the corporate name out there,” said Craig Holman, a lobbyist for Public Citizen who has tracked influence efforts at the conventions.

The Lobbying Reform That Enriched Congress
Politico – Isaac Arnsdorf | Published: 7/3/2016

In the wake of the Jack Abramoff scandal, Democrats seized on the chaos to retake both chambers of Congress, promising voters they would change what they called a “culture of corruption.” Their attempt to make good on that promise, the Honest Leadership and Open Government Act of 2007, was embraced by both parties as a historic breakthrough. But critics say the result of the law is very nearly the opposite of what the American public was told it was getting at the time. Not only did the lobbying reform bill fail to slow the “revolving door,” it created an entire class of professional influencers who operate in the shadows.

From the States and Municipalities:

Connecticut – Anthem-Cigna Controversy Exposes Gaps in Ethics Rules
Connecticut Mirror – Mark Pazniokas | Published: 7/5/2016

Connecticut Insurance Commissioner Katharine Wade’s refusal to recuse herself from ruling on the Anthem-Cigna merger has provoked a reappraisal of state ethics regulators, who heavily rely on the self-reporting of public officials, and an ethics code that may be clearer to lawyers than lovers of English. Wade, a former Cigna vice president of government affairs, in February did not try to hide the fact that her staff was reviewing Anthem’s application to acquire Cigna for $54 billion. “On behalf of the Department, I signed a contract with an independent economist to assist Department staff in their review of the Anthem Form A application. Presently, there are no Cigna matters before me,” Wade wrote to the Office of State Ethics. Wade declined recently to say what basis she concluded there were no Cigna matters before her under the meaning the state ethics code, given that she already has asserted her intention to rule on the merger.

Massachusetts – Senate Slow to Embrace DeLeo Ethics Panel
Lowell Sun – Matt Murphy (State House News Service) | Published: 7/7/2016

Massachusetts House Speaker Robert DeLeo’s efforts to jumpstart a review of the state’s ethics, campaign finance, and lobbying laws has hit a roadblock in the Senate, where leaders so far have refused to go along out of concern the broad scope of the speaker’s proposed review would lead to a dead end. DeLeo had offered a resolve that would have created a joint task force of the House, Senate, and Gov. Charlie Baker’s administration to review the state’s complex ethics laws. The House referred the speaker’s proposal to a joint committee, but so far the Senate has refused to admit the bill, leaving open the possibility that the House could choose to work with the governor alone on the review.

Michigan – Unions Win Injunction Blocking Michigan Fundraising Law
Detroit News – Jonathan Oosting | Published: 7/1/2016

A U.S. District Court Judge granted a preliminary injunction against a law passed by the Michigan Legislature last year that would make it easier for corporations to deduct money from employees’ paychecks for their own PACs while forbidding them from making similar deductions on behalf of labor unions. It is the second preliminary injunction from a federal judge against a provision of the law, which also prohibited local government officials from distributing information about ballot proposals, a restriction dubbed a “gag order” by critics.

Minnesota – Lobbying in Minnesota: Spending has nearly doubled since 2002
St. Paul Pioneer Press – Rachel Stassen-Berger | Published: 7/4/2016

Special interest groups have spent $800 million lobbying government officials in Minnesota over the last 13 years. The St. Paul Pioneer Press review also found the amount of annual spending has doubled and the number of lobbying clients has tripled. Business interests have dominated the spending annually, making up about half of the lobbying expenditures every year since 2002. Utilities have spent the most, followed by the health industry. Spending or the lack thereof does not always translate to influence, however. Good lobbyists, say lobbyists and lawmakers alike, know that. “Lobbyists don’t write laws … lobbyists write ideas. Lobbyists write suggestions,” said Tom Lehman, who has been a lobbyist for 26 years.

New York – Agency Clears Mayor de Blasio and Nonprofit of Campaign Finance Violations
New York Times – Vivian Yee | Published: 7/6/2016

The New York City Campaign Finance Board determined a nonprofit closely linked to Mayor Bill de Blasio did not spend money to bolster the mayor’s re-election bid, but the board said the group’s spending raised serious policy issues. The board said Campaign for One New York’s 2014 spending was not campaign-related, primarily because it occurred so far from the mayor’s re-election race in 2017. Yet the board appeared to find much that was troublesome, if not illegal, in the behavior of the nonprofit, which has amassed millions of dollars in donations to push for City Hall initiatives. The board also clarified rules governing nonprofit advocacy groups that are affiliated with politicians.

New York – In Inquiry into Ex-Cuomo Aide, Disclosure Form Only Adds Mystery
New York Times – Vivian Yee | Published: 7/5/2016

Two companies listed in a financial disclosure form from 2014 belonging to Joseph Percoco, who for many years was New York Gov. Andrew Cuomo’s closest aide, seem to be at the heart of a sprawling federal investigation encircling Cuomo’s administration. One firm, Chris Pitts LLC, is named for a minor Democratic activist in rural Connecticut who, until recently, lived with his sister and got around town in an aging Chevrolet. The other, COR Development Company, is one of the most prominent real estate developers in central New York. In an investigation with few signposts for those outside the U.S. attorney’s office in Manhattan, Percoco’s disclosure is the nearest thing to a map key. Yet the connection between the Percoco and COR and Chris Pitts LLC. is not as straightforward as the black and white of an official form might imply.

New York – JCOPE Shut Down in Lobbying Reform
Queens Chronicle – Michelle Kraidman | Published: 6/30/2016

The Joint Commission on Public Ethics (JCOPE) in February approved an advisory opinion that required paid consultants, who “controlled the delivery” of a message to editorial boards encouraging them to support positions that were favorable to a client, to register as lobbyists. They also would have had to report their contacts with media outlets’ opinion writers. That led to great opposition as accredited media sources, and several public relations and consulting firms sued JCOPE, arguing the new regulations were unconstitutional. Now, a statement released by the governor’s office announced that the agreed-upon legislation for an ethics reform plan does not include what JCOPE had originally recommended. “[The agreement] explicitly excludes communications with journalists, including editorial boards, from the definition of lobbying and exclude these communications from lobbying regulation,” the statement said.

Rhode Island – Raimondo: Lobbying law makes rules ‘clear, simple, consistent and transparent’
Providence Journal – Jennifer Bogdan | Published: 7/6/2016

In a ceremonial signing of lobbying legislation, Rhode Island Gov. Gina Raimondo described the changes as making the rules “clear, simple, consistent, and transparent.” The legislation, which goes into effect on January 1, clarifies who is a lobbyist and what constitutes lobbying. The penalty for failure to register is a fine of up to $50,000 and revocation of lobbyist registration for up to three years. Lobbyists will also be required to file monthly public reports of their activities from January to June and quarterly reports from July to December. The reports must include all compensation received, all expenditures made, and “all money and anything of value provided or promised to any legislative or executive branch official” in excess of $250.

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.

July 7, 2016 • Written by Jonathan Spontarelli

Idaho Ballot Initiative Group Fails to Collect Enough Signatures

An attempt to place an initiative on the November ballot to overhaul state campaign finance and ethics regulations has failed. The Keep Idaho Elections Accountable campaign, chaired by Democrat Holli Woodings, failed to collect the 48,000 signatures needed, coming up […]

July 6, 2016 • Written by Jim Sedor

Wednesday Government Relations News

Lobbying “The Lobbying Reform That Enriched Congress” by Isaac Arnsdorf for Politico “Lockheed’s Top Government Affairs Official Not Registered as Lobbyist” by Austin Wright and Jeremy Herb for Politico Minnesota: “Lobbying in Minnesota: Spending has nearly doubled since 2002” by […]

July 1, 2016 • Written by Jonathan Spontarelli

News You Can Use Digest – July 1, 2016

National: Report: It’s harder to know who’s paying for political ads Star Tribune – Geoff Mulvilhill (Associated Press) | Published: 6/27/2016 A report by New York University’s Brennan Center finds the use of so-called dark money in several states has increased […]

National:

Report: It’s harder to know who’s paying for political ads
Star Tribune – Geoff Mulvilhill (Associated Press) | Published: 6/27/2016

A report by New York University’s Brennan Center finds the use of so-called dark money in several states has increased faster than in national elections. Across six states – Alaska, Arizona, California, Colorado, Maine, and Massachusetts – dark money expenditures rose by 38 percent between 2006 and 2014, outstripping the 34 percent rate of increase found in federal elections. And that does not include other categories of nontransparent outside money. The report defines “gray money” as expenditures by entities that do disclose their contributors, but who also list dark money organizations as donors, making it difficult or impossible to locate the original source of the money.

Two Transgender Candidates – Both Named Misty – Just Made History by Winning Primaries
Washington Post – Amber Phillips | Published: 6/29/2016

Primary voters in Utah and Colorado selected transgender women to run for spots in Congress next fall, a first in major-party American political history. Misty Snow will run against U.S. Sen. Mike Lee in Utah this November, while Misty Plowright will challenge U.S. Rep. Doug Lamborn in Colorado. Neither Snow nor Plowright sought to make their gender identities a campaign issue, instead focusing on progressive issues like getting money out of politics. Their wins come as transgender rights have been thrust into the national spotlight after contentious debates in states like North Carolina. “This is even more breathtaking considering the political climate today, the uphill curve to educate people about who transgender people are,” said Bob Witeck, a Washington, D.C.-based LGBT advocate.

Federal:

Bernie Sanders Campaign Showed How to Turn Viral Moments into Money
New York Times – Nick Corasaniti | Published: 6/24/2016

Like most modern campaigns, U.S. Sen. Bernie Sanders and his team relied on widely used digital fundraising tactics, like sending email solicitations and advertising online. They raised more than $61 million and acquired more than three million email addresses directly from digital ads. But the campaign was also able to harness social media networks – which, until recently, most candidates had used primarily for messaging purposes – and turn them into fundraising engines, allowing Sanders’ team to raise money almost exclusively online. The campaign raised roughly $216 million of its nearly $230 million total online.

Donald Trump and R.N.C. Crack Down on Rebelling Delegates
New York Times – Jeremy Peters | Published: 6/26/2016

Donald Trump’s campaign and the Republican National Committee (RNC) are moving quickly and aggressively to head off the fledgling effort to stage a revolt at their July convention in Cleveland, hoping to spare the party an embarrassing spectacle that could deeply wound the presumptive nominee. They are employing hard-nosed tactics, warning delegates that attempting to undermine Trump’s claim to the nomination violates party rules, and threatening to deny speaking slots to Republicans they deem disloyal for not backing him. The RNC and the campaign are also installing loyal party stalwarts in key party positions to help ensure they maintain control of the convention if rogue delegates attempt a disruption. And they are trying to discredit Republicans who are advocating an interpretation of party rules that would allow delegates to vote for anyone they want on the first ballot.

Trump Fundraising Emails Overseas Prompt Complaints Here and Abroad
Washington Post – Sean Sullivan and Max Bearak | Published: 6/29/2016

Donald Trump’s campaign sent a wave of fundraising emails in recent days to lawmakers in the United Kingdom, Iceland, Australia, and elsewhere. The solicitations prompted watchdog groups to file two separate complaints with the FEC alleging the campaign was violating federal law by soliciting funds from foreign nationals. The episode is only the latest fundraising stumble by Trump’s presidential campaign, which has been scrambling to put together a financial operation to take on the well-funded campaign of likely Democratic nominee Hillary Clinton. Whether the snags prove to be growing pains for a campaign that until recently eschewed traditional fundraising or a sign of more serious stumbles to come is a key question facing Trump and the Republican Party as the general election comes into focus.

From the States and Municipalities:

California – At the Corner of Power and Poverty
CALmatters – Laurel Rosenhall | Published: 6/28/2016

The Capitol in Sacramento serves as a magnet for money and power. Nearby shops sell fine cigars and custom suits. A bar serves $16 martinis. But the streets that surround the building also are home to some of the city’s most destitute residents, many suffering from mental illness or drug addiction in addition to extreme poverty. It is not uncommon to see them rifling through trash cans, shouting incoherently, or sleeping barefoot in the shade on the Capitol’s manicured grounds. Bridging these two worlds is Debbie Bartley, who stands across the street selling Homeward, a newspaper produced by homeless people. She chats with the political staffers and lobbyists who give her a few dollars as they pass by. Then she buys food for people who sleep on these streets.

California – Sweeping Public Utilities Commission Changes Announced
Sacramento Bee – Jeremy White | Published: 6/27/2016

A deal between Gov. Jerry Brown and state lawmakers will bring major changes to the California Public Utilities Commission. When commissioners engage in ex-parte conversations around rate-setting rules, they would need to disclose them online under the agreement. The state attorney general could bring enforcement actions against people who violate the rules. The deal also clarifies that people who lobby the PUC would need to register as lobbyists. Through March of this year, more than 50 utilities and other lobbyist employers reported more than $6.3 million in PUC-connected lobbying activities.

Connecticut – Cigna-Anthem Merger: Gov. Malloy’s Insurance Regulator Told Ethics Officials She Was Not Involved in Cigna Issues, even as Her Agency Was
International Business Times – David Sirota | Published: 6/27/2016

Connecticut ethics officials are now investigating whether it is legally permissible for the state’s insurance commissioner to oversee the government’s review of her former company’s proposed merger. In regulators’ probe of conflict-of-interest issues in the Cigna-Anthem transaction, one question they may ask is whether the commissioner in question, former Cigna lobbyist Katharine Wade, deliberately misled them. Emails show that in February, Wade told ethics officials she had no Cigna business before her, even though her agency was then leading the national multistate review of the company’s merger plan, and even though Wade had repeatedly met with the company’s representatives. Wade’s letter to ethics officials did tell them that her staff was reviewing the merger, but did not disclose any information about her own contacts with the companies and their lobbyists.

Delaware – Supreme Court Rejects Challenge to Delaware Election Law
Wilmington News Journal – Jessica Masulli Reyes | Published: 6/28/2016

The U.S. Supreme Court rejected a conservative group’s challenge to Delaware’s campaign finance law. The justices left in place a lower court ruling allowing the 2012 law to be enforced. It requires third-party groups and individuals to disclose their donors to the state elections commissioner if they publish advertisements or other communications, including Internet postings, that refer to a candidate in the 60 days before an election. Previously, only groups that directly advocated for or against a candidate were required to disclose their donors.

Kentucky – Bevin Asserts Control of All Ethics Board Appointments
Lexington Herald-Leader – Jack Brammer | Published: 6/28/2016

Kentucky’s attorney general and state auditor will no longer be able to nominate members of the Executive Branch Ethics Commission under a new executive order from Gov. Matt Bevin. The governor appoints the members of the commission, which investigates allegations of state ethics code violations in the state’s executive branch. But in 2008, then-Gov. Steve Beshear issued an executive order requiring the governor to appoint two members of the commission that had been recommended by the attorney general and the state auditor. Bevin repealed that order, effectively allowing him to control all of the appointments to the board assigned to hold his administration accountable. Bevin spokesperson Jessica Ditto said the order simply returns the appointment process to the system state lawmakers intended.

New York – Bill Would Expand Disclosure for Donors to Lobbying Groups
Albany Times Union – Chris Bragg | Published: 6/29/2016

Under a 2011 law, charitable tax-exempt nonprofits in New York are not required to report their donors, even if the organizations have financially supported lobbying efforts meant to influence state government. Based on comments from state lobbying officials, a bill that Gov. Andrew Cuomo is expected to sign appears to require any charitable organization making a contribution over $2,500 to a substantial New York lobbying campaign to publicly disclose every one of its donors, even those unrelated to the lobbying effort. That would include both donations of staff and other resources for a charity to a lobbying nonprofit, or a monetary contribution.

Ohio – As Activists Prepare to Protest the RNC, the FBI Comes Knocking
Los Angeles Times – Matt Pearce | Published: 6/27/2016

In July, Donald Trump will come to Cleveland to claim the Republican presidential nomination. Given how turbulent some protests outside Trump rallies have been, and that the convention comes just weeks after the worst mass shooting in recent U.S. history, finding the right balance between security and First Amendment rights will be a challenge. Shivers have gone through the Cleveland activist community since law enforcement officials began knocking on their doors as tens of thousands of visitors prepare to come to town. The FBI office in Cleveland said the visits were part of their plans with state and local law enforcement to prepare for the convention by “working collaboratively with members of the community.”

Virginia – Supreme Court Vacates Ex-Virginia Governor’s Graft Conviction
New York Times – Adam Liptak | Published: 6/27/2016

The U.S. Supreme Court unanimously vacated the conviction of former Virginia Gov. Robert McDonnell. He was charged with using his office to help Jonnie Williams Sr., who had provided McDonnell and his wife with gifts worth more than $175,000 when McDonnell was governor. The gifts themselves were legal; the question was whether they were part of a corrupt bargain in which McDonnell reciprocated by using the power of his office to help Williams. The Supreme Court ruled prosecutors defined too broadly the kind of conduct that qualifies as an “official act.” Chief Justice John Roberts said the law cannot punish politicians for giving their constituents access to public officials who are willing to listen, but do not actually exercise government power.

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.

June 29, 2016 • Written by Jim Sedor

Wednesday Government Relations News

Campaign Finance “House Democrats Face Ethics Complaints for Fundraising Off Sit-In” by Paul Singer for USA Today “Soft Money Ban Should Be Scrapped, Skeptical Judges Urged” by Kenneth Doyle for Bloomberg BNA “Bernie Sanders Campaign Showed How to Turn Viral […]

June 28, 2016 • Written by Jim Sedor

Tuesday Lobbying and Campaign Finance News Update

Lobbying California: “Sweeping Public Utilities Commission Changes Announced” by Jeremy White for Sacramento Bee Campaign Finance “Report: It’s harder to know who’s paying for political ads” by Geoff Mulvihill (Associated Press) for Las Vegas Sun Kentucky: “Ethics Commission OKs Crowdfunding […]

Tuesday Lobbying and Campaign Finance News Update

Monday News Roundup

News You Can Use Digest – July 29, 2016

Wednesday Government Relations News

News You Can Use Digest – July 22, 2016

Thursday News Roundup

Wednesday Government Relations News

Monday News Roundup

News You Can Use Digest – July 8, 2016

Idaho Ballot Initiative Group Fails to Collect Enough Signatures

Wednesday Government Relations News

News You Can Use Digest – July 1, 2016

Wednesday Government Relations News

Tuesday Lobbying and Campaign Finance News Update

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