On March 14, Gov. Dennis Daugaard signed Senate Bill 54 into law. The bill revises many requirements dealing with campaign finance to strengthen campaign finance laws after the repeal of Initiated Measure 22.

Senate Bill 54 will allow organizations, such as corporations and labor unions, to contribute directly to candidates. The measure also restricts candidates from using campaign funds for personal expense.

Senate Bill 54 was initially introduced with provisions to lower contribution limits; however, those provisions were amended prior to the bill’s passage to reflect pre-Initiated Measure 22 limits.

Lobbying

“Icahn’s Ethanol Push Fuels Ethics Storm” by Eric Wolf for Politico

“N.J. Congressman Wants Details on Michael Flynn’s Lobbying Status” by Fredreka Schouten for USA Today

Campaign Finance

Texas: “Ethics Review Commission Weighs Campaign Finance Proposal” by Jack Craver for Austin Monitor

Washington: “House Speaker Hit with Campaign Finance Complaint in Growing Tug-of-War” by Walker Orenstein for The Olympian

Canada: “Political Donations in Canada: A guide to the ‘wild west’ vs. the rest” by Evan Annett and Tu Thanh Ha for The Globe and Mail

Ethics

“With Trump in White House, His Golf Properties Prosper” by Eric Lipton and Susanne Craig for New York Times

Illinois: “Chicago Aldermen Shouldn’t Take Free White Sox Tickets, Ethics Official Says” by John Byrne for Chicago Tribune

Illinois: “BGA Goes Back to Court to Gain Access to Emanuel’s Private Email” by Sun-Times Wire Service for WBBM

New Jersey: “N.J. Moves to Restore Election Watchdog” by Andrew Seidman for Philadelphia Inquirer

Elections

“With Trump in White House, Some Executives Ask, Why Not Me?” by James Stewart for New York Times

Lobbying

“Would-Be Trump Appointees Say ‘No Thanks’ Due to Lobbying Ban” by Ben Brody, Shannon Pettypiece, and Bill Allison for Bloomberg.com

Oregon: “Gov. Brown Reverses Course, Says Former Lawmaker Will Not Lobby Legislators” by Saul Hubbard for The Register-Guard

Campaign Finance

“FEC Earning Congressional Attention – for the Wrong Reasons” by Dave Levinthal for Center for Public Integrity

Ethics

Florida: “Corrupt Opa-locka Official Was a Prized Witness. He Was Rewarded with No Prison Time.” by Jay Weaver for Miami Herald

New Mexico: “Senate Yanks Real Estate Bill; Lawmaker Says Pay-to-Play Maneuver Exposed” by Andrew Oxford (Santa Fe New Mexican) for New Mexico Political Report

New York: “Preet Bharara Shunned Politics. His End Was Tinged by Them.” by Benjamin Weiser, Ben Protess, Matthew Goldstein, and William Rashbaum for New York Times

Utah: “Shurtleff Sues State for at Least $1.1M, Alleges Utah A.G. Sean Reyes Interfered in His Case” by Jennifer Dobner for Salt Lake Tribune

Elections

California: “Seeing Red: Membership triples for the Democratic Socialists of America” by Matt Pearce for Los Angeles Times

Legislative Issues

Minnesota: “Lawmakers Clash Over Ethics of Real ID Letter to the Editor” by Don Davis (Forum News Service) for St. Paul Pioneer Press

Redistricting

Texas: “Texas Congressional Maps Are Struck Down for Discrimination” by Manny Fernandez for New York Times

Lobbying

“Gramm’s Border-Tax Crusade Would Help His Firm” by Isaac Arnsdorf for Politico

Florida: “House Passes Six Year Ban on Lobbying for Former Lawmakers, Elected Officials” by Allison Neilson for Sunshine State News

Virginia: “Virginia Lawmakers Are Accepting Drastically Fewer Gifts in Post-McDonnell Era, Data Shows” by Will Houp for The Virginian-Pilot

Campaign Finance

Canada: “RCMP to Investigate Political Donations in B.C.” by Ian Bailey, Kathy Tomlinson and Justine Hunter for The Globe and Mail

Pennsylvania: “McCord to Star in Trial Involving Pennsylvania Treasury Fees” by Marc Levy (Associated Press) for Philadelphia Inquirer

Ethics

“Suing Trump on Ethics? Good Luck Making Your Case” by Isaac Arnsdorf and Darren Samuelsohn for Politico

California: “Garcetti Bans Private Meetings Between Developers and Planning Commissioners” by Emily Alpert Reyes for Los Angeles Times

Maine: “Official Now Says Rep. Tipping Likely Violated Maine Ethics Law” by Scott Thistle for Portland Press Herald

New Mexico: “NM House Backs Independent Ethics Panel” by Dan McKay for Albuquerque Journal

South Dakota: “SD Governor Signs into Law Bills to Replace Voter-Approved Ethics Measure” by Staff for KOTA

See what’s happening in government relations this week in our News You Can Use Video Digest. Enjoy!

Federal:

‘Big Candy’ Is Lobbying the Trump Administration. It’s Also Holding Events at Trump Hotels.
Washington Post – Amy Brittain and Jonathan O’Connell | Published: 3/7/2017

The National Confectioners Association, which represents Hershey, Mars, and Jelly Belly, among other companies, is doing a lot of business with President Trump’s company. In addition to its gathering of 600 attendees for an industry conference at the Trump National Doral resort near Miami, the group has booked two upcoming meetings, in September and again in 2018, at the Trump International Hotel in Washington, D.C. At the same time, the organization is optimistic about scoring policy wins from the Trump administration. The matter illustrates a repercussion of Trump’s decision to retain ownership of his business during his time in the White House, that he can become financially intertwined with a special interest that is simultaneously seeking to influence policy decisions by his administration.

Ethics Questions Dogged Agriculture Nominee as Georgia Governor
New York Times – Eric Lipton and Steve Eder | Published: 3/7/2017

Sonny Perdue, who is awaiting confirmation to serve as President Trump’s agriculture secretary, became a target of frequent criticism that he was failing to honor his ethics pledge to reform state government during his eight years as Georgia governor. The criticism centers on the fact that, as Trump has, he continued to own or help run his family business ventures – four farming-related companies – while serving as governor. His confirmation is on hold as the Office of Government Ethics office must examine Perdue’s proposal to avoid conflicts while running the department, which may include selling off some of his farming assets. Before his tenure as governor ended in 2011, 13 complaints had been filed against Perdue with Georgia’s ethics commission, which on two occasions ruled he violated state ethics laws.

Iraq’s Lobbyists Mobilized after Travel Ban, Documents Reveal
The Hill – Megan Wilson | Published: 3/7/2017

Lobbyists for the Iraqi government were in contact with Trump administration officials and lawmakers ahead of the decision to remove the country from the travel ban. Brownstein Hyatt Farber Schreck, a law and lobby firm, sent letters to senior administration officials, including Secretary of State Rex Tillerson and Secretary of Defense James Mattis, requesting the officials meet with Iraq’s new ambassador, Fareed Yasseen, and Naufel Alhassan, the deputy chief of staff to Iraq’s prime minister. The letters came about two weeks after President Trump signed an executive order temporarily banning individuals from seven Muslim-majority countries, including Iraq, from entering the U.S.

From the States and Municipalities:

Arkansas – Ex-Arkansas Senator Indicted by U.S.; 2 Others Accused in Kickbacks Case
Arkansas Online – Doug Thompson | Published: 3/3/2017

Former Arkansas Sen. Jon Woods and two others were named in a federal indictment alleging corruption involving state funds intended for economic development in a case in which another former state lawmaker has already pleaded guilty. Woods of Springdale is charged with mail and wire fraud in the 13-count indictment that also names Oren Paris III and Randell Shelton, Jr. The indictment alleges Woods and former Rep. Micah Neal directed the Northwest Arkansas Economic Development District to distribute hundreds of thousands of dollars from the state’s general improvement fund that is intended for economic development to specific, unnamed entities. Neal pleaded guilty in January to arranging kickbacks with a then-unnamed former state senator. Neal said he received $38,000 from funds awarded to two entities by the district.

California – California Lawmakers Report Accepting $518,000 in Gifts, Including Travel and Expensive Meals
Los Angeles Times – Patrick McGreevy, Melanie Mason, and Chris Megerian | Published: 3/2/2017

Three years after Gov. Jerry Brown vetoed a bill that would have severely restricted gifts to public officials – limiting their value to $200 per giver, and banning amusement park and sports tickets – veteran lawmakers continue to rake in such gifts, many from special interest groups seeking favors from state government. The flood of 2,312 gifts totaling $518,000 to 114 lawmakers is troubling to former state Sen. Sam Blakeslee, who tried unsuccessfully four times to pass a bill that would have prohibited gifts from interests that employ lobbyists. “I believe these gifts are corrosive to the public trust and create an appearance of an unhealthy intimacy between legislators and moneyed interests,” said Blakeslee.

Colorado – Denver Council Approves New Ethics Rules, Including $300 Gift Limit
Denver Post – Jon Murray | Published: 3/6/2017

The Denver City Council adopted a series of changes to the ethics code that, for the first time, puts a monetary cap on the value of meals and event tickets council members and other city officials can accept from people over whom they have decision-making authority. That cap replaces a loose four-item limit that does not set a maximum value. Critics argued it was vulnerable to abuse. The new ordinance also creates an independent body to establish the list of people who are eligible to be appointed to the Denver Board of Ethics. It also expands the list of family members in the conflict-of-interest rules who cannot benefit from contracts or official action, among other provisions.

Maryland – Former Md. Del. Michael Vaughn Charged with Selling His Vote in Bribery Scheme
Washington Post – Linh Bui | Published: 3/8/2017

A federal grand jury indicted Former Maryland Del. Michael Vaughn on charges he took bribes to support a liquor license bill in the General Assembly and misused his campaign finance account. Vaughn is accused of accepting more than $10,000 in cash bribes from liquor store owners in exchange for his support of a 2015 bill that allowed some businesses in Prince George’s County to sell liquor on Sundays. With that bill passed, authorities say Vaughn worked during the 2016 session to block legislation that would have created more licenses to protect the liquor store owners. The indictment also alleges Vaughn siphoned money from his campaign account and used it for his personal benefit. He allegedly filed fraudulent campaign finance reports to cover up how he was using the money.

Massachusetts – Healey Hands Thornton Law Case to Independent Prosecutor
Boston Globe – Andrea Estes | Published: 3/4/2017

Massachusetts Attorney General Maura Healey will appoint a special prosecutor and recuse herself from any investigation into alleged campaign finance violations by Boston’s Thornton Law Firm, whose lawyers donated to her political campaign. The Office of Campaign and Political Finance said it has evidence the firm, a major Democratic funder, illegally reimbursed the firm’s partners and their spouses for up to $175,000 in campaign contributions. Thornton officials have said they did nothing wrong and the reimbursements, termed “bonuses” in the firm’s payroll records, were not really bonuses at all, but the partners’ own money, taken out of each’s equity in the firm.

New Jersey – David Samson Avoids Jail in United Airlines Bribery Scandal
NJ.com – Ted Sherman (NJ Advance Media) | Published: 3/6/2017

David Samson, a former attorney general of New Jersey and longtime friend of Gov. Chris Christie, avoided prison time during his sentencing for pressuring executives of United Airlines into operating a weekly flight to South Carolina for his personal convenience. Instead, he was ordered to serve one year of home confinement. Samson had pleaded guilty to bribery, admitting he had used his power as chairperson of the Port Authority of New York and New Jersey to coerce United into running the route even though it was not profitable. He had threatened to block the construction of a hangar that United needed at Newark Liberty International Airport if the airline did not provide the service. The route ended in Columbia, near one of Samson’s homes.

Ohio – Special Report: Politicians allowed freebies, favors under Ohio ethics laws
Dayton Daily News – Laura Bischoff | Published: 3/2/2017

Ohio’s ethics laws, which date to the Watergate scandal, exist to hold those in government accountable. The law covers 590,000 people, including 10,300 key officials who must file annual financial disclosure statements. State Ethics Commission Executive Director Paul Nick said Ohio has a track record for enforcement that is equaled by only a handful of other states. Ohio is not shy about who it goes after either: the list of public officials who have been caught violating ethics laws includes then-Gov. Bob Taft. Others say the laws themselves keep government clean and its officials honest. But a Dayton Daily News investigation found loopholes in Ohio’s system for policing unethical activity.

Tennessee – Exclusive: Jeremy Durham may face $7 million in state penalties
The Tennessean – Dave Boucher and Joel Ebert | Published: 3/8/2017

Former Rep. Jeremy Durham may face almost $7 million or more in state fines as a result of at least 690 violations of Tennessee’s campaign finance law. The information, contained in a “show cause” notice issued by the Tennessee Registry of Election Finance, also provides for the first time the names of prominent campaign donors and business owners who gave Durham thousands of dollars that the former lawmaker never reported on his campaign disclosures. The report also details nearly $76,000 in improperly disclosed campaign expenditures, on everything from Florida restaurants and airplane tickets to flowers and a Yankee Candle purchase. Among these findings are many of the more than $10,000 in illegal purchases Durham made that were included in a state audit.

Utah – Complaints Accuse Utah Lawmaker of Bullying, Berating School Officials in Front of Students
Salt Lake Tribune – Benjamin Wood | Published: 3/7/2017

Students who visit the Capitol during the legislative session get a civics lesson on state history and government, and, for at least one group of Utah County fifth-graders, a front-row view to rancorous politics. That is what Jenna Wood described in a letter to Senate President Wayne Niederhauser after witnessing an “agitated” Sen. Howard Stephenson threatening to sue Alpine School District administrators during a confrontation in the Capitol Rotunda with several of her daughter’s Foothill Elementary School classmates nearby. In a separate letter, Alpine Superintendent Sam Jarman complained about the incident and alluded to other confrontations with Stephenson, noting the most recent meeting was notable for occurring in a public place.

Utah – Jury Acquits John Swallow of All Charges
Deseret News – Dennis Romboy and McKenzie Romero | Published: 3/2/2017

Former Utah Attorney General John Swallow was acquitted of bribery and evidence tampering charges in one of the highest-profile scandals in state history. Jurors found Swallow not guilty of nine counts that also included obstruction of justice, falsifying government documents, and misuse of public funds. He had faced one to 30 years in prison. Prosecutors accused Swallow of hanging a virtual “for sale” sign on the door to the state’s top law enforcement office by taking campaign donations and gifts like beach vacations from fraudsters and businesspeople in exchange for favorable treatment. Salt Lake County District Attorney Sim Gill said it was a complex case where jurors were asked to consider matters that were not black and white but “various shades of gray.”

Washington – Ferguson Delivers the Laundry Bill: Grocery Manufacturers told to pay $1.1 million
Seattle Post-Intelligencer – Joel Connelly | Published: 3/1/2017

A Thurston County Superior Court judge ordered the Grocery Manufacturers Association (GMA) to pay $1.1 million in legal fees after it violated Washington’s campaign finance disclosure laws. Those fees are on top of the $18 million in fines the food industry trade group was ordered to pay in November. State Attorney General Bob Ferguson sued the GMA in 2013, claiming it failed to register and report its political committee that opposed voter Initiative 522. The initiative would have required labeling of genetically modified organisms, or GMOs, in food sold to consumers. Judge Anne Hirsch said the group “intentionally violated” state disclosure laws in its efforts to oppose the initiative.

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.

Lobbying

“‘Big Candy’ Is Lobbying the Trump Administration. It’s Also Holding Events at Trump Hotels.” by Amy Brittain and Jonathan O’Connell for Washington Post

Campaign Finance

“GOP Commissioner: Trump poised to revamp election agency” by Rudy Takala for The Hill

Maryland: “Baltimore County Bill to Ban Developer Donations Fails” by Pamela Wood for Baltimore Sun

Tennessee: “Exclusive: Jeremy Durham may face $7 million in state penalties” by Dave Boucher and Joel Ebert for The Tennessean

Ethics

“Ethics Questions Dogged Agriculture Nominee as Georgia Governor” by Eric Lipton and Steve Eder for New York Times

Alabama: “Alabama’s Governor Was Recorded Having a Sexually Explicit Conversation. Is Impeachment Next?” by Amy Wang and Amber Phillips for Washington Post

New Jersey: “Mayor of Paterson, N.J., Is Indicted in Corruption Probe” by Nick Corasaniti for New York Times

New York: “For Years, City Spent $300 an Hour Looking for $5,000” by Jim Dwyer for New York Times

Virginia: “For First Time, Va. Legislators’ Reports Showing Their Gifts and Stocks Are Now Online” by Patrick Wilson for Richmond Times-Dispatch

Legislative Issues

Utah: “Complaints Accuse Utah Lawmaker of Bullying, Berating School Officials in Front of Students” by Benjamin Wood for Salt Lake Tribune

Lobbying

“Top K Street Campaign Donors Already Writing Checks for 2018” by Kate Ackley for Roll Call

“Iraq’s Lobbyists Mobilized after Travel Ban, Documents Reveal” by Megan Wilson for The Hill

South Dakota: “Senate OKs Limit on Gifts Officials Can Get from Lobbyists” by the Associated Press for U.S. News & World Report

Campaign Finance

Canada: “British Columbia: The ‘wild west’ of fundraising” by Kathy Tomlinson for The Globe and Mail

Connecticut: “SEEC Makes Pitch to Strengthen Campaign Laws” by Jack Kramer for CTNewsJunkie.com

Kentucky: “Plan to Double Limit on Campaign Donations Heads to Kentucky House” by John Cheves for Lexington Herald-Leader

Ethics

California: “Ex-Stockton Mayor Stole Money Meant for Disadvantaged Kids, Prosecutors Allege” by Darrell Smith for Sacramento Bee

Colorado: “Denver Council Approves New Ethics Rules, Including $300 Gift Limit” by Jon Murray for Denver Post

New Mexico: “New Hope in House for Independent Ethics Commission” by Dan Mckay for Albuquerque Journal

Utah: “1 of Every 4 Bills in Legislature Poses Potential Conflict-of-Interest for Sponsors” by Lee Davidson for Salt Lake Tribune

Denver City Council approved legislation on Monday amending the city gift rules. Council Bill No. 16-1202 establishes a $300 annual limit on meals, tickets, or free or reduced price admissions from persons or donors with a city interest.

Officers, officials, and employees may accept meals, tickets, or free admission to events regardless of the annual cap if the meals are provided to all attendees at a public meeting and consumed while the meeting is in progress.

The $300 limit also excludes meals provided to all members of any governmental, civic, or non-profit board if the officer, official, or employee is a member and if the meals are consumed in conjunction with any meeting of the board.

Finally, the limit excludes tickets or free admission offered by a charitable or other non-profit entity hosting the event and not by any third party.

The bill will be forwarded today to the mayor for approval and to the city clerk and recorder for attestation; it is effective tomorrow, March 8.

Campaign Finance

Florida: “Orlando Airport Contractors Helped Fund Board Member’s Campaign” by Beth Kassab for Orlando Sentinel

Massachusetts: “Healey Hands Thornton Law Case to Independent Prosecutor” by Andrea Estes for Boston Globe

Ethics

“A Conspiracy Theory’s Journey from Talk Radio to Trump’s Twitter” by Peter Baker and Maggie Haberman for New York Times

“Trump Sons, Planning Expansion of Family Business, Look to Leverage Campaign Experience” by Jonathan O’Connell, David Fahrenthold, and Matea Gold for Washington Post

Maine: “Maine House Rejects Call for Ethics Review of PAC Payments to Democrat” by Scott Thistle for Portland Press Herald

Maryland: “Maryland House Reprimands Democrat Over Medical Marijuana Business Ties” by Fenit Nirappil and Aaron Gregg for Washington Post

New Jersey: “David Samson Avoids Jail in United Airlines Bribery Scandal” by Ted Sherman (NJ Advance Media) for NJ.com

Ohio: “Special Report: Politicians allowed freebies, favors under Ohio ethics laws” by Laurie Bischoff for Dayton Daily News

West Virginia: “Some of Justice’s Companies Put in Blind Trust” by Phil Kabler for Charleston Gazette

Lobbying

California: “California Lawmakers Report Accepting $518,000 in Gifts, Including Travel and Expensive Meals” by Patrick McGreevy, Melanie Mason, and Chris Megerian for Los Angeles Times

Campaign Finance

Massachusetts: “Boston Law Firm Could Be Charged on Donations” by Andea Estes and Viveca Novak for Boston Globe

Washington: “Ferguson Delivers the Laundry Bill: Grocery Manufacturers told to pay $1.1 million” by Joel Connoly for Seattle Post-Intelligencer

Ethics

“New EPA Head Told Congress He Never Used Personal Email for Government Business. But It Turns Out He Did.” by Steven Mufson for Washington Post

“Majority Rule Means the Power to Stop, Not Just Start, an Investigation” by Carl Hulse for New York Times

“Kushner and Flynn Met with Russian Envoy in December, White House Says” by Michael Schmidt, Matthew Rosenberg, and Matt Apuzzo for New York Times

Arkansas: “Ex-Arkansas Senator Indicted by U.S.; 2 Others Accused in Kickbacks Case” by Doug Thompson for Arkansas Online

North Carolina: “Court Ruling Throws Status of Ethics, Elections Panels into Doubt” by Laura Leslie and Mark Binker for WRAL

Utah: “Jury Acquits John Swallow of All Charges” by Dennis Romboy and McKenzie Romero for Deseret News

See what’s happening in government relations this week in our News You Can Use Video Digest. Enjoy!

National:

Companies Lobbying Government Keep Spending Secret from Shareholders: Report
International Business Times – David Sirota | Published: 3/1/2017

A new report finds just 12 percent of publicly traded corporations in the S&P 500 disclose their lobbying expenditures to shareholders. Investors have increasingly called for corporate disclosure of both campaign contributions and lobbying. Some 90 percent of S&P 500 companies have board level policies regarding campaign contributions, compared to the 25 percent that have policies on lobbying. But those policies largely apply to the federal government. The study found disclosure at the state level is sparse. Five percent of S&P 500 corporations reveal which states they lobby in and two percent reveal aggregate lobbying costs.

Republican Lawmakers Introduce Bills to Curb Protesting in at Least 17 States
Washington Post – Christopher Ingraham | Published: 2/24/2017

Since the election of Donald Trump as president, Republican lawmakers in at least 17 states have introduced or voted on legislation to curb mass protests in what civil liberties experts are calling “an attack on protest rights throughout the states.” From Virginia to Washington state, legislators have introduced bills that would increase punishments for blocking highways, ban the use of masks during protests, and, in at least once case, seize the assets of people involved in protests that later turn violent. The proposals come after a string of mass protest movements in the past few years, covering everything from police shootings of unarmed black men to the Dakota Access Pipeline to the inauguration of Trump.

Federal:

Barring Reporters from Briefings: Does it cross a legal line?
New York Times – Adam Liptak | Published: 2/28/2017

The White House blocked a number of media outlets from entering Press Secretary Sean Spicer’s office for a scheduled briefing, a highly unusual breach of relations between the White House and its press corps. Aides to Spicer allowed in reporters from only a handpicked group of news organizations that, the White House said, had been previously confirmed to attend. Organizations allowed in included Breitbart News, the One America News Network, and The Washington Times, all with conservative leanings. Reporters from Time magazine and The Associated Press, who were set to be allowed in to the briefing, chose not to attend in protest. The White House move came hours after Trump delivered a slashing broadside against the news media in a speech at the Conservative Political Action Conference.

Sessions Met with Russian Envoy Twice Last Year, Encounters He Later Did Not Disclose
Washington Post – Adam Entous, Ellen Nakashima, and Greg Miller | Published: 3/1/2017

U.S. Attorney General Jeff Sessions spoke twice with Russia’s ambassador to the U.S. last year, raising new questions about contact between Trump campaign officials and the Kremlin. Sessions, a former senator from Alabama, did not disclose the contact with Russian Ambassador Sergey Kislyak during his confirmation hearings, testifying under oath that he “did not have communications with the Russians.” The contacts are coming under scrutiny because Sessions endorsed Donald Trump early in his presidential bid. A spokesperson for Sessions confirmed the contact with Kislyak, saying the attorney general spoke on the phone with the ambassador in September. That conversation took place during the time when intelligence officials assert that Russia was interfering with the U.S. presidential election through a hacking and influence campaign.

Supreme Court Backs FEC Disclosure Rules
Bloomberg BNA – Kenneth Doyle | Published: 2/28/2017

The U.S. Supreme Court upheld a requirement that forces groups to say who is paying for issue advertising directed at candidates in an approaching election. The justices affirmed a lower court decision in a case involving ads that mention candidates but do not call for the election or defeat of one. The Supreme Court has generally upheld disclosure requirements even as it has struck down limits on raising and spending money in political campaigns.

Trump Inspires Encryption Boom in Leaky D.C.
Politico – Andrew Restuccia and Nancy Cook | Published: 2/27/2017

In a capital worried about leaked information, many people are scrambling to cover their digital tracks. More than 70 workers from several federal agencies are using encrypted cellphone apps to arrange nighttime and weekend meetings at homes in the Washington, D.C. area to discuss their potential resistance to President Trump, said Danielle Brian, executive director of the Project on Government Oversight. The surge in the use of scrambled-communication technology – enabled by free smartphone apps such as WhatsApp and Signal – could skirt or violate laws that require government records to be preserved and the public’s business to be conducted in official channels. Defenders of federal workers argue that interest in encryption has skyrocketed as career employees ponder how to respond to an administration they fear will break the law and punish dissent.

Who’s Watching Trump’s Ethics Watchdogs?
Politico – Darren Samuelsohn | Published: 2/25/2017

The lawyers tasked with policing Donald Trump’s potential conflicts-of-interest are grappling with an oversight system that is disjointed and ineffective. More than two dozen attorneys working inside and outside government have a part of Trump’s ethics portfolio, but no one individual has visibility into the full picture. The set up means that in some cases the lawyers are overlapping while other areas of potential conflict go uncovered entirely. Perhaps a bigger issue for the watchdog effort is that the lawyers who have the job of safeguarding either the White House or the president and his family business do not see the conflict issues as deserving the significant attention they have received since Trump’s election win last November.

From the States and Municipalities:

Arizona – Arizona House Passes Bills to Restrict Citizen Initiatives
Arizona Republic – Mary Jo Pitzl | Published: 2/23/2017

In an attempt to gain control over laws proposed by citizens, the state House approved a package of bills designed to rein in the century-old initiative process enshrined in the Arizona Constitution at statehood. Opponents say the moves would undercut the power of the people to shape laws, and run counter to the citizen initiative process, while proponents argue lawmakers need the flexibility to fix unforeseen problems that might arise from a ballot measure. The measures now move to the Senate for consideration.

California – Regulators Investigating SDG&E for Potential Lobbying Violations
San Diego Union-Tribune – Joshua Emerson Smith | Published: 2/23/2017

State regulators said they are investigating San Diego Gas & Electric’s (SDG&E) efforts to influence the local adoption of government-run electricity programs, saying the company does not have permission to do so yet. Officials with SDG&E and its parent company, Sempra Energy, said the California Public Utilities Commission cleared their specially designated marketing division to lobby on community choice aggregation (CCA), a program that would give residents and businesses an alternative to SDG&E. After publicly lobbying on CCA before the San Diego County Board of Supervisors, officials with the SDG&E marketing arm, Sempra Services Corporation, said they have been meeting with lawmakers countywide on this issue. This lobbying caught the attention of the commission’s regulators. They said they are looking into the matter and violations could be subject to fines as high as $50,000 for each offense.

Colorado – How the Charities on Your Colorado Tax Form Used Connections, Money and Legislation to Earn the Coveted ‘Godsend’
Denver Post – Brian Eason | Published: 2/27/2017

Colorado’s charitable checkoff program became the nation’s first in 1977 and the state touts itself as a national leader for tax-season giving. The donations are collected when residents offer to donate portions of their tax refund or make contributions above the amount owed by filling out a supplemental form. But the official seal of approval by appearing on the form obscures uncomfortable realities. Most of the organizations receive no state oversight and won a spot with political clout. For groups that appear on the form, Sen. Lois Court said, “frequently it’s because there is a lobbyist available to help – that kind of knocks out those who can’t afford lobbyists.”

Florida – Rubio Is Asked to Leave Tampa Office Over Disruption from Weekly Protests
Tampa Bay Times – Tony Marrero | Published: 2/28/2017

The owner of Bridgeport Center has notified U.S. Mario Rubio’s office that it will not renew its lease in the Tampa office building. The reason is that demonstrations have become too disruptive to the other tenants and a costly expense for America’s Capital Partners, the building’s owner. A variety of progressive groups who oppose President Trump’s agenda have gathered at least once a week at the building, lining up on the sidewalk to wave signs and shout messages. Rubio’s seven statewide offices have been lightning rods for demonstrations. Gatherings in front of the Tampa office have surpassed 150 people.

Florida – Senator Seeks Probe into Whether Lobbyist Lisa Miller Posed as ‘Concerned Citizen’ During Call
Florida Today – Michael Malone | Published: 2/24/2017

State Sen. Kevin Rader is asking Gov. Rick Scott to investigate whether lobbyist Lisa Miller posed as a “concerned citizen” to mislead participants in a conference call with a company that rates Florida insurers. Miller has denied posing as someone named Mary Beth Wilson to praise Demotech, Inc. during the call. Demotech held the call to explain a change in its rating system and discuss the downgrade of some Florida insurance companies. Jeff Grady, president of the Florida Association of Insurance Agents, first reported on his blog that “most industry professionals” believed the caller was Miller, of Lisa Miller & Associates. He did not name her, but posted a link to her lobbyist registration page, which identifies her as representing Demotech, among other clients.

Illinois – Six More Lobbyists Face Fines for Using Emanuel’s Private Emails
Chicago Sun-Times – Fran Spielman | Published: 2/27/2017

After hitting former Uber executive David Plouffe with a record $90,000 fine for emailing Mayor Rahm Emanuel without registering as a lobbyist, the Chicago Board of Ethics issued probable cause letters to five more unregistered lobbyists and the companies they represent. A sixth letter was issued to a registered lobbyist accused of failing to report a contact, as required by law. Ethics board Chairperson William Conlon did not identify the six lobbyists in question or their companies. He would only say the maximum fines are “substantial” and the names would be released after the accused have an opportunity to respond and exercise their right to an administrative hearing. Other sources said all six individuals had lobbied Emanuel through the private email accounts the mayor used to conduct public business.

Minnesota – For Local Officials with Family Ties, Transparency Counts
Minnesota Public Radio – Brandt Williams | Published: 2/24/2017

Minneapolis City Council member and mayoral hopeful Jacob Frey got married last July, and his wife is a lobbyist. Sarah Clarke works for Hylden Advocacy and Law, which lobbies state and local governments, including Minneapolis. governments, including Minneapolis. In March of last year, the firm represented an industry group which opposed a proposed prohibition on plastic carry-out bags. Frey was one of 10 council members who voted to approve the ban. But Frey initially neglected to note his wife’s employment on a form he and other Minneapolis elected officials have to file every January. The so-called statement of economic interest form requires city officials to disclose any outside sources of compensation, along with that of their spouses or domestic partners.

New Jersey – A $500 Contribution to Republicans Costs Paving Company $7M
NJ.com – Dave Hutchinson (NJ Advance Media) | Published: 2/27/2017

A court upheld the decisions of two New Jersey agencies to rescind two contracts totaling about $7 million to a paving business and ban the company from any state contracts through the remainder of Gov. Chris Christie’s second term because of its $500 contribution to Somerset County Republicans. The court found that the donation disqualified Della Pello Paving from receiving state contracts under the state’s “pay-to-play” law, which bars state contracts exceeding $17,500 to a business that contributed more than $300 during the preceding 18 months to the governor, a candidate for governor, or any state or county political party committee.

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.

Lobbying

“Companies Lobbying Government Keep Spending Secret from Shareholders: Report” by David Sirota for International Business Times

South Dakota: “Legislature Expands Lobbying Ban to More Officials and Doubles Length” by Bob Mercer for Rapid City Journal

Washington: “Washington Commission Confirms What’s Upstream Stayed Within State Law” by Don Jenkins for Capital Press

Campaign Finance

Mississippi: “House Amends, Passes Senate Campaign Finance Bill” by Geoff Pender for Jackson Clarion-Ledger

Ethics

“White House Lawyer Twice Briefed Conway on Ethics Rules Following Ivanka Product Pitch” by Josh Gerstein for Politico

“White House Power Player Jared Kushner Is Keeping Parts of His Real Estate Empire” by Justin Elliot and Al Shaw for ProPublica

Connecticut: “Watchdog Agencies Worried About Budget Cuts” by Mike Savino for Meriden Record-Journal

Florida: “Rubio Is Asked to Leave Tampa Office Over Disruption from Weekly Protests” by Tony Marrero for Tampa Bay Times

Ohio: “In Selling Bill, Ohio Senator Describes Possibly Illegal Deal” by Jim Siegel for Columbus Dispatch

Redistricting

Virginia: “Supreme Court Says Virginia Redistricting Must Be Reexamined for Racial Bias” by Robert Barnes for Washington Post