October 17, 2018 • Written by Jim Sedor

Wednesday’s LobbyComply News Roundup

Campaign Finance California: “An L.A. Councilman Held an $800-Per-Person Fundraiser. The Next Day, He Announced He Was Stepping Down” by Emily Alpert Reyes and David Zahniser for Los Angeles Times Ethics National: “Donors to Dark-Money Groups Mostly Hidden Despite Court […]

October 16, 2018 • Written by Jim Sedor

Tuesday’s LobbyComply News Roundup

Campaign Finance Connecticut: “Former Democratic Legislator Ernie Newton Wins New Trial in Campaign Finance Case” by Christopher Keating for Hartford Courant Massachusetts: “Mass. Fiscal Alliance Sues State Over Its Campaign Finance Law” by Bob Katzen for Fitchburg Sentinel and Enterprise […]

October 15, 2018 • Written by Jim Sedor

Monday’s LobbyComply News Roundup

Elections Georgia: Voting Rights Become a Flashpoint in Georgia Governor’s Race by Ben Nadler (Associated Press) for WRAL Ethics National: Watchdog: Issues with IRS processing of improper political activity complaints by Naomi Jagoda for The Hill October National: Facebook Purged […]

October 12, 2018 • Written by Jonathan Spontarelli

News You Can Use – October 12, 2018

National: Out-of-State Donors Pour Cash into Democrats’ State Races Center for Public Integrity – Rui Kaneya and Joe Yerardi | Published: 10/10/2018 Nationwide, many Democrats running for state-level offices from governor to state representative are also collecting a significant amount […]

National:

Out-of-State Donors Pour Cash into Democrats’ State Races
Center for Public Integrity – Rui Kaneya and Joe Yerardi | Published: 10/10/2018

Nationwide, many Democrats running for state-level offices from governor to state representative are also collecting a significant amount of money from across state lines. Though Democrats still trail Republicans in the overall fundraising tally, they have so far raised at least $101 million from out of state, about $29 million more than their GOP counterparts have taken in. The influx of out-of-state contributions comes from a mix of companies with local interests, networks of contacts scattered across the country, and newly emboldened national groups that are mobilizing to influence state-level elections, mindful that the outcomes will have an impact on politics at the state and national levels lasting well into the next decade.

Federal:

FEC Guidance to Limit Impact of Dark Money Court Ruling
Associated Press – Brian Slodysko | Published: 10/5/2018

The FEC issued new guidance in response to a U.S. District Court ruling that found the agency improperly allowed “social welfare” nonprofits to skirt disclosure requirements for some donors. While the guidance answers some questions, it raises others. “A lot of people were very excited when [the case] first came out, but when you get into the weeds, one has to acknowledge that the opinion is not as broad some people had hoped,” said FEC Commissioner Ellen Weintraub.

Saluting the Trump Administration, Not So Nicely
Politico – Ben Schreckinger | Published: 10/9/2018

At the White House, the nearby Trump International Hotel, and wherever the presidential motorcade goes, Washingtonians are greeting Donald Trump’s presidency with an extended middle finger. As episodes like the separation of migrant families and the confirmation of Brett Kavanaugh to the Supreme Court continue to inflame passions in Washington, D.C., these one-fingered salutes have become a pervasive marker of an administration under siege in its own city. Tourists posing for photographs, passengers in the cars that drive by the White House, and pedestrians caught unaware by motorcades have all made increasing use of the vulgar gesture since Trump came to town. Some do it subtly; others make a show of it.

Wall Street Is Booming Under Trump. But Many of Its Donors Are Embracing Democrats.
WRAL – Shane Goldmacher (New York Times) | Published: 10/7/2018

The stock market is booming, unemployment is hitting record lows, and Republicans pushed through $1.5 trillion in tax cuts. But despite all that, for the first time in a decade, the broader financial community is on pace to give more money to Democratic congressional candidates and incumbents than their GOP counterparts. Some of the same grassroots energy coursing through the Democratic Party, House candidates from Kentucky to Montana to New York are reporting record sums of small donations, has spilled into the corporate boardrooms of American finance, even amid increasingly hostile rhetoric from Democrats in Washington and on the campaign trail toward Wall Street.

From the States and Municipalities:

California: Are Political Swamps in California and Washington Mostly Drained? This Study Says They Are.
Sacramento Bee – Andrew Sheeler | Published: 10/9/2018

California ranks second in the nation for anti-corruption laws, according to a new report from the Coalition for Integrity. California share second-place Rhode Island; both states fell behind Washington state, which claimed the best score in the 2018 States With Anti-Corruption Measures for Public Officials (S.W.A.M.P.) Index. The index looks at eight metrics when assigning a score to a state, including whether there is an ethics agency with subpoena and sanction power, and whether elected and appointed executive branch officials are prohibited from accepting expensive gifts from lobbyists. At the other end of the spectrum, the S.W.A.M.P. Index rated North Dakota as worst in the nation for ethics and transparency laws.

Colorado: Wall Street Pumping Cash Through Loophole in Anti-Corruption Rule
Capital & Main – David Sirota and Chase Woodruff | Published: 10/4/2018

If Wall Street executive look to land a lucrative contract to manage Colorado retirees’ pension money, a federal “pay-to-play” rule is designed to deter them from trying to use campaign donations to influence state officials who oversee those investment decisions. Despite that regulation, however, state Treasurer Walker Stapleton’s gubernatorial campaign is being boosted by a political group partially sponsored by financial firms that receive investments from the pension fund Stapleton helps run. If Stapleton is elected governor, he will leave the pension fund’s board but will appoint three members of the board, potentially giving him even more influence over which financial firms get pension investments.

Indiana: Former Intern Says Brian Bosma Tried to Intimidate Her Over Alleged Sexual Encounter
Indianapolis Star – Tony Cook, Kaitlin Lange, and Ryan Martin | Published: 10/10/2018

Indiana House Speaker Brian Bosma investigated groping allegations against the state attorney general and is crafting a first-ever sexual harassment policy for legislators. He is also the same man who aggressively investigated the credibility of a former statehouse intern who said she had a sexual encounter with him decades ago. Family members of the woman claim Bosma’s attorney threatened to reveal the unfavorable information about her if her account became public and to expose her name even if news organizations withheld it. The former intern, Kandy Green, did not accuse Bosma of a crime. Bosma denies the encounter took place.

Kentucky: Amy McGrath Is Avoiding Attack Ads. Can a Congressional Candidate Win Without Them?
WRAL – Michael Tackett (New York Times) | Published: 10/10/2018

The race for Kentucky’s Sixth Congressional District between U.S. Rep. Andy Barr and his Democratic challenger, Amy McGrath, has featured one of the highest concentrations of political ads in the country, almost 7,000 airings, in one of the most fiercely fought races. The contest also has one of the most lopsided ratios of negative-to-positive ads, with Barr and aligned Republican groups spending overwhelmingly on spots attacking his opponent. McGrath, so far, has not run attack ads, an approach that makes this contest a laboratory to test the proposition that while voters find negative ads distasteful, candidates use them because they work.

Missouri: Missouri Lobbying Rules Fought in Federal Court
Courthouse News Service – Joe Harris | Published: 10/8/2018

The Institute for Justice filed a lawsuit claiming an executive order that bans all gifts, including written materials, to certain government officials in Missouri violates its constitutional rights. At issue is Missouri Executive Order 17-02 which prohibits “anything of value” to be given to a member of the state’s executive branch by a lobbyist. The Institute for Justice claims that by prohibiting the distribution of two of its publications, “Bottleneckers: Gaming the Government for Power and Private Profit” and “License to Work 2,” to government employees, the executive order violates its First Amendment right to free speech and Fourteenth Amendment right to petition the government for redress of grievances.

New Mexico: New Mexico Legislators Eat, Lobbyists Treat, but Public Left Guessing Who
Santa Fe New Mexican – Andrew Oxford | Published: 10/8/2018

Because of a loophole in New Mexico law, lobbyists for the most part do not have to disclose which officials they have been attempting to influence. Although the latest round of filings by lobbyists points to tens of thousands of dollars spent on entertaining policymakers, the representatives of companies and special interests remain largely free to conceal the issues they are advocating for and the policymakers they are trying to sway. The Legislature has shown little appetite for requiring more disclosure from lobbyists.

Ohio: Workers Allege Campaign Donations Were Expected, Rewarded by Summit Prosecutor Sherri Bevan Walsh
WKYC – Phil Trexler and Tom Meyer | Published: 10/10/2018

Summit County Prosecutor Sherri Bevan Walsh is accused of ignoring acts of bullying, sexual harassment, and racial discrimination in her office, while allowing political campaigning to take place by favored workers, sometimes on county time, and requiring campaign donations of her workers and denying pay hikes to those who did not. Walsh’s campaign finance reports reflect the cash flow, showing her employees contributed thousands of dollars, or about half of her entire campaign funds, in the past six filing periods. Five employees have filed complaints alleging mistreatment.

Oklahoma: Attorneys Help Bankroll Campaigns of Judges Who Hear Their Cases
Oklahoma Watch – Taylor Brown | Published: 10/8/2018

Judges in Oklahoma rarely recuse themselves voluntarily or on request because they received money from attorneys arguing before them. That is despite the fact that attorneys represent the largest number of donors to district judges’ campaigns. Court filings show many of those attorneys frequently have appeared before the candidates to whom they gave money; some donated to judges while the judge was still presiding over their case. No evidence has emerged that donations from lawyers gained them or their firms more favorable rulings or treatment from judges. But campaign finance reform advocates, along with some Oklahoma judicial candidates, say the state’s system of electing district judges poses a risk to the integrity of the system.

South Carolina: SC Attorney General Tried to Impede Statehouse Corruption Probe, Grand Jury Says
Charleston Post and Courier – Glenn Smith and Thad Moore | Published: 10/9/2018

South Carolina Attorney General Alan Wilson’s inaction impeded a probe into statehouse corruption, according to a grand jury report. Wilson’s conduct after former House Speaker Bobby Harrell pleaded guilty and named two other lawmakers cost investigators 13 months and meant the statute of limitations on potential federal crimes like money laundering ran out, the grand jurors said. The report notes Wilson’s close relationship with political consultant Richard Quinn. The corruption inquiry focused mainly on Quinn’s consulting business, his clients, and whether he acted like a lobbyist without registering. The report gives a behind the curtain look at the blurry line between political consultants, lobbyists, and powerful businesses in the state.

Tennessee: Taylor Swift’s Stunning Statement: Famously apolitical star slams Tennessee Republican, endorses Democrats
Washington Post – Emily Yahr | Published: 10/7/2018

Taylor Swift, the pop music star who has been notably apolitical in turbulent political times, endorsed two Democratic candidates running for election in Tennessee. In a post on Instagram, Swift said she planned to vote for Phil Bredesen, who is competing in a close U.S. Senate race against a Republican candidate backed by President Trump, and U.S. Rep. Jim Cooper, an incumbent who represents the Nashville area. Swift’s political views had previously been left up to interpretation, and at times her silence was viewed as support for Trump as well as the alt-right movement.

West Virginia: As 1 Supreme Court Justice Survives Impeachment in West Virginia, Others Face Trial
Governing – Phil Kabler (Charleston Gazette) | Published: 10/3/2018

One West Virginia Supreme Court justice has survived an impeachment scare. Beth Walker will remain in office after state senators rejected an impeachment article against her after a two-day trial. Senators later adopted a resolution by voice vote to issue a public reprimand of Walker. She was accused of abusing her authority. The impeachment charge stated Walker and other justices failed to control office expenses and maintain policies over matters such as working lunches and the use of state vehicles and office computers at home.

October 11, 2018 • Written by Jim Sedor

Thursday’s LobbyComply News Roundup

Campaign Finance National: “Out-of-State Donors Pour Cash into Democrats’ State Races” by Rui Kaneya and Joe Yerardi for Center for Public Integrity National: “The Hidden Money Funding the Midterms” by Derek Willis and Maggie Severns for ProPublica New York: “Democratic […]

October 10, 2018 • Written by Jim Sedor

Wednesday’s LobbyComply News Roundup

Campaign Finance California: “LA City Council Favors Reducing Barriers to Campaign Matching Funds” by Craig Clough for Los Angeles Daily News Oklahoma: “Attorneys Help Bankroll Campaigns of Judges Who Hear Their Cases” by Taylor Brown for Oklahoma Watch Elections National: […]

October 9, 2018 • Written by Jim Sedor

Tuesday’s LobbyComply News Roundup

Campaign Finance National: “Wall Street Is Booming Under Trump. But Many of Its Donors Are Embracing Democrats.” by Shane Goldmacher for New York Times Elections National: “‘We Are Here!’ From a Blue Dot in a Sea of Red Comes a […]

October 8, 2018 • Written by Jim Sedor

Monday’s LobbyComply News Roundup

Campaign Finance National: “FEC Guidance to Limit Impact of Dark Money Court Ruling” by Brian Slodysko for Associated Press National: “Wall Street Pumping Cash Through Loophole in Anti-Corruption Rule” by David Sirota and Chase Woodruff for Capital & Main Elections […]

October 5, 2018 • Written by Jonathan Spontarelli

News You Can Use – October 5, 2018

National: Missing in the G.O.P.: Black and Hispanic Nominees for Governor New York Times – Astead Herndon | Published: 10/3/2018 In the first midterm elections under Donald Trump, whose campaign and presidency included strong appeals to white voters, Republicans have […]

National:

Missing in the G.O.P.: Black and Hispanic Nominees for Governor
New York Times – Astead Herndon | Published: 10/3/2018

In the first midterm elections under Donald Trump, whose campaign and presidency included strong appeals to white voters, Republicans have no black or Hispanic nominees for governor in 2018, and few from other racial minorities, in the 36 states holding elections for the position. The overwhelming majority are white men. Democrats this year have nominated black, Hispanic, and Native American candidates for governor in Arizona, Florida, Georgia, Idaho, Maryland, and elsewhere. The Republican falloff is striking after past election seasons when party leaders attempted to identify and then rally behind minority candidates for governor in major states, like Ohio and Pennsylvania.

Federal:

Trump Engaged in Suspect Tax Schemes as He Reaped Riches from His Father
MSN – David Barstow, Susanne Craig, and Russ Buettner (New York Times) | Published: 10/2/2018

Donald Trump won the presidency proclaiming himself a self-made billionaire, and he has insisted his father provided almost no financial help. But an investigation reveals Trump received the equivalent today of at least $413 million from his father’s real estate empire, starting when he was a toddler and continuing to this day. Much of this money came to Trump because he helped his parents dodge taxes. He and his siblings set up a sham corporation to disguise millions of dollars in gifts from their parents. Records indicate Trump helped his father take improper tax deductions worth millions of dollars more. He also helped formulate a strategy to undervalue his parents’ real estate holdings by hundreds of millions of dollars on tax returns, reducing the tax bill when those properties were transferred to him and his siblings.

From the States and Municipalities:

Alabama: ‘Beach House Sheriff’ Used Pistol Permit Fees to Pay for TV Commercials During Campaign
AL.com – Connor Sheets | Published: 10/3/2018

Between October 31, 2017, and July, Etowah County Sheriff Todd Entrekin paid Venture Marketing Group more than $29,000 for work related to television ads. Venture created multiple commercials that only aired during the eight months prior to the June primary election. Even though the ads feature Entrekin speaking about the sheriff’s office and promoting programs he oversees as sheriff, his campaign committee did not pay Venture for the work. Entrekin instead paid the company out of an official sheriff’s office account he alone controls called the Sheriff’s Law Enforcement Fund. Nearly half of the money in the fund is generated by selling pistol permits.

Arizona: This Lawmaker Stands to Earn at Least $11M on His Own Charter Schools. His Votes Helped Lay the Groundwork.
Arizona Republic – Craig Harris | Published: 10/2/2018

Arizona House Speaker J.D. Mesnard and Rep. Eddie Farnsworth amended the state budget to exempt charter schools from procurement and conflict-of-interest laws, and from a requirement to disclose their entire annual spending plans on school websites. Farnsworth was not just a lawmaker interested in the details of the bill. He also runs a four-campus charter chain that because of the amendment would remain free of state oversight of its spending. Farnsworth’s involvement in the last-minute maneuver highlights how his roles as a state lawmaker and charter-school operator have for years mingled at the Capitol, almost always to the benefit of Farnsworth and the state’s other charter school operators.

California: Gov. Brown Signs Bill Requiring Lobbyists to Receive Sexual Harassment Prevention Training
San Francisco Chronicle – Bay City News Service | Published: 10/1/2018

California Gov. Jerry Brown signed a bill that requires lobbyists to receive sexual harassment prevention training. Assembly Bill 2055 requires lobbyists’ ethics courses to include information on Assembly and Senate policies against harassment, including sexual harassment, in connection with lobbying activities. “We need to make sure that everyone who does business in the Capitol understands what we mean by our zero-tolerance policy. Mandated training is an effective method to get that message across,” Assemblyperson Marc Levine said.

California: New State Law Requires More Transparency from Social Media Political Ads
Voice of OC – Brandon Pho | Published: 10/3/2018

California Gov. Jerry Brown signed a social media disclosure bill into law. A separate bill had bolstered the requirements for disclosing the names of the top three funders of ballot measures and independent expenditures on television, radio, and print ads. Assembly Bill 2188 now extends those same requirements to online platforms. Social media platforms that sell ads directly to advertisers will be required to keep a database of any political ad disseminated on the platform by a committee that purchased $500 or more in ads within a year.

Florida:Lobbyists Paid to Pressure County Officials Skip Filing Required Disclosures, Audit Says
Fort Myers News-Press – Bill Smith | Published: 9/29/2018

An audit found nearly 60 percent of registered lobbyists in Lee County, Florida have missed the required filing of annual or quarterly statements on their activities. The county ordinance covers contact with county commissioners and employees at the director level and above to report contacts with anyone who is paid to “influence the passage, defeat, modification or repeal,” of any matter requiring a commission vote. It also includes non-secretarial employees in the purchasing division and contracts office. Companies that employee lobbyists are required to file an annual registration statement and quarterly statements about lobbying activities.

Kentucky: Ethics Bill Seeks to Close Reporting Loophole on Groups Paying for Legislators’ Travel
Insider Louisville – Joe Sonka | Published: 9/27/2018

An ethics bill pre-filed in Kentucky could close a reporting loophole that allowed groups, including partisan advocacy organizations, to prepay for the out-of-state travel and lodging expenses of state legislators. A recent investigation estimated that up to $100,000 was spent by outside groups on lawmakers’ approved travel outside of the state last year; that spending did not have to be reported to any state agency. While public funds spent on such travel and reimbursements from private groups must be reported, there is no requirement for legislators to disclose how much those organizations spend to send them to conferences and events, so long as such groups pay for the airfare, lodging, and meals in advance.

Mississippi: In Mississippi Senate Race, an African American Democrat Faces a Republican Using a Confederate Symbol
Washington Post – Cleve Wootson Jr. | Published: 9/30/2018

U.S. Senate candidate Mike Espy has tried to remind Mississippians how he has served them in the past, with three terms in the U.S. House who spent time as President Clinton’s agriculture secretary. But even his most ardent supporters worry that when many voters go to the polls in November, what Espy has done will matter much less than what he is: a black man running for one of the highest elected offices in a state with a Confederate emblem on its flag. One of his opponents is hearkening to another version of the past: Republican Chris McDaniel, a conservative fond of provocative statements whose yard signs feature the flag of the Confederate States of America.

New Jersey: Murphy Still Defends Hiring Ex-Official Jailed for Corruption (Even Though He Was Forced to Resign)
Newark Star Ledger – Brent Johnson (NJ Advance Media) | Published: 10/2/2018

Gov. Phil Murphy continued to defend his administration’s decision to hire a former Passaic City Council member who served prison time for accepting bribes, even after the hiring was deemed unlawful and Marcellus Jackson was forced to resign. Murphy hired Jackson in July for a $70,000-a-year position as a special assistant in the state Department of Education’s Office of Civic and Social Engagement. Murphy said his administration conducted a legal review that cleared Jackson’s hiring. But Attorney General Gurbir Grewal said state law should have prevented the hire because former public officials convicted of corruption are disqualified from ever holding a public job again in New Jersey.

Pennsylvania: Alex Trebek Moderated a Gubernatorial Debate in Pennsylvania. It Didn’t Go Well.
Chicago Tribune – Antonia Noori Farzan (Washington Post) | Published: 10/2/2018

Pennsylvania Gov. Tom Wolf and his Republican challenger, Scott Wagner, met recently in their only debate prior to the November election with “Jeopardy” host Alex Trebek serving as moderator. While moderators typically ask questions and let the candidates talk, Trebek spoke at length – at times sharing his own policy opinions – during the 45-minute debate, frustrating viewers. At one point, Trebek joked that the only thing with a lower approval rating than the Pennsylvania Legislature was the Catholic Church. Polite laughter from the audience turned to boos. On Twitter, the consensus was that Trebek should stick to his day job.

Tennessee: In Tennessee Senate Race, Financial Missteps Linger in the Background
New York Times – Danny Hakim | Published: 10/3/2018

U.S. Rep. Marsha Blackburn, the Republican candidate for an open Senate seat in Tennessee, has faced questions about her spending practices. In her years as a member of Congress, she has paid out more than $370,000 from her campaign funds to her daughter and son-in-law or firms they control. Her campaigns have received 54 requests for additional information from the FEC since 2002, and in a 2008 audit, the campaign admitted receiving nearly $400,000 in unreported contributions and expenditures. Her opponent, Phil Bredesen, has had his own financial misstep. A longtime booster of the solar industry as governor, he started a solar company with two of his aides during his last year in office. After he left office, the business went on to reap some of the tax breaks the Bredesen administration had put in place.

Vermont: Governor’s Business Ties Violate State Ethics Code, Commission Finds
VTDigger.org – Mark Johnson | Published: 10/2/2018

Vermont Gov. Phil Scott violated the ethics code by maintaining an ongoing financial relationship with a company doing business with the state, according to the Vermont State Ethics Commission. Under political pressure, Scott sold his interest in Dubois Construction back to the company after he took office in 2017. Scott received no cash at the time of the transaction and is still owed $2.5 million by the company. The commission said the conflict arose when Dubois won a two-year contract for $250,000 in 2017, which the panel said “provides significant income to the company, and directly assists the company in meeting its financial obligation to the public official.”

Washington: Washington Court Upholds Fine Against Anti-GMO Group
Capital Press – Don Jenkins | Published: 10/3/2018

An appeals court affirmed that Food Democracy Now must pay a $319,281 fine for not reporting the names of more than 7,000 donors who supported a food labeling initiative in 2013. The court rejected the group’s argument that it should not have been convicted because it did not intentionally hide the donations. Judge Rich Melnick said the law does not make an exception for unintentionally concealing the source of campaign contributions. The fine stemmed from Initiative 522, which would have required food and beverage makers to label products with genetically modified ingredients.

October 4, 2018 • Written by Jim Sedor

Thursday’s LobbyComply News Roundup

Campaign Finance Alabama: “‘Beach House Sheriff’ Used Pistol Permit Fees to Pay for TV Commercials During Campaign” by Connor Sheets for AL.com New Mexico: “Patrick Lyons Fundraising for Land Commissioner Campaign Raises Legal and Ethical Questions” by Elizabeth Miller for […]

October 2, 2018 • Written by Jim Sedor

Tuesday’s LobbyComply News Roundup

Campaign Finance California: “Inglewood Mayor’s Campaign Loaned Nearly $160,000 to a Political Ally. None of It Has Been Paid Back” by Benjamin Oreskes for Los Angeles Times Massachusetts: “State Police Union President Pullman Resigns Amid New Federal Probe” by Andrea […]

October 1, 2018 • Written by Jim Sedor

Monday’s LobbyComply News Roundup

Campaign Finance National: “Former Congressman Claims Vindication after Miami Judge Dismisses Ringer Lawsuit” by David Smiley for Miami Herald Canada: “B.C. to Review Campaign Finance Laws After Civic Elections” by Ian Bailey and Wendy Steuk for The Globe and Mail […]

September 27, 2018 • Written by Jim Sedor

Thursday’s LobbyComply News Roundup

Campaign Finance Illinois: “Cook County OK to Restrict Campaign Cash from Lawyers, Others Seeking ‘Official Action,’ Appeals Court Says” by Jason Bilyk for Cook County Report Elections Florida: “Will Florida’s Ex-Felons Finally Regain the Right to Vote?” by Emily Bazelon […]

September 26, 2018 • Written by Allyson Smith

Wednesday’s LobbyComply News Roundup

Campaign Finance National: “Dems Offer Resolution to Force Vote to Overturn IRS Guidance Limiting Donor Disclosure” by Naomi Jagoda for The Hill Canada: “Vancouver Shows B.C. Is Still the Wild West of Election Advertising” by Frances Bula for The Globe […]

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