House Bill 91 was introduced yesterday to require Alaska’s legislative lobbyists to pay a 2.5 percent tax on income earned from lobbying activities.

As introduced, the proceeds from the tax would be appropriated to the Alaska Public Offices Commission, which is the state agency tasked with regulating lobbyists. If passed, House Bill 91 would take effect January 1, 2018.

Campaign Finance

Texas: “Under New Reality, Austin Council Members Can Raise Funds Year-Round” by Nolan Hicks for Austin American-Statesman

Ethics

“Report Cites Growing Corruption, Sees Link with Rising Populism” by Andrea Shalal for Reuters

“Felony Charges for Journalists Arrested at Inauguration Protests Raise Fears for Press Freedom” by Jonah Engel Bromwich for New York Times

“At Trump’s Mar-a-Lago, the Price for Joining the ‘Winter White House’ Has Doubled” by Drew Harwell for Washington Post

Kentucky: “Consultant Admits to Longmeyer Bribery Scheme” by Tom Loftus for Louisville Courier-Journal

West Virginia: “Armstead to Address Ethics Request After Session” by Phil Kabler for Charleston Gazette

Legislative Issues

“Trump’s Flashy Executive Actions Could Run Aground” by Isaac Arnsdorf, Josh Dawsey, and Seung Min Kim for Politico

Lobbying

Florida: “Lee Clerk Wants Audit of County Lobby Logs” by Patricia Borns for The News-Press

Pennsylvania: “Governor Fires Head of State Drug and Alcohol Office” by Angela Couloumbis and Karen Langley for Pittsburgh Post-Gazette

Texas: “Once-Dead Ethics Reforms Could Curb Lobbying Tricks, Increase Disclosures and Punish Criminal Lawmakers” by J. David McSwane for Dallas News

Campaign Finance

California: “Contra Costa DA Slapped with $45,000 Fine as Criticism Builds” by Nate Gartrell for East Bay Times

Ethics

“An Early Test of Trump’s Ethics Pledge Is a Glittering New Foreign Tower” by Drew Harwell, Alan Freeman, and Jenny Peng for Washington Post

“White House, Trump Organization Name Ethics Advisers” by Bernard Condon and Chad Day (Associated Press) for WRAL

Utah: “Utah House Speaker Greg Hughes’ Name Dragged into the Criminal Case of Former A.G. John Swallow” by Jennifer Dobner and Tom Harvey for Salt Lake Tribune

Elections

“Trump Seeks ‘Major Investigation’ into Unsupported Claims of Voter Fraud” by Jenna Johnson and Matt Zapotosky for Washington Post

Legislative Issues

Nebraska: “Nebraska Lawmaker Quits After Unsavory Women’s March Tweet” by Grant Schulte (Associated Press) for ABC News

South Carolina: “South Carolina Lawmaker Accused of Beating His Wife Resigns” by Seanna Adcox (Associated Press) for ABC News

Gov. Andrew Cuomo tackled several issues at his recent State of the State Address.

Cuomo acknowledged the corruption at all levels of government, and proposed plans for a full-time Legislature, term limits for elected officials, an increase to the inspector general’s powers, and a strategy to limit campaign contributions from major companies.

Additionally, he also intends to appoint a new chief procurement officer, require public funding for elections, and recruit new inspectors for the State Education Department and the Port Authority.

Gov. Cuomo also acknowledged the success of all of his proposed bills and amendments depend on the public’s currently deteriorating trust in New York’s leaders.

A joint committee of the South Dakota Legislature voted Monday to send House Bill 1069 to a full chamber debate in an attempt to repeal Initiated Measure 22.

Initiated Measure 22 is the voter approved ethics and campaign finance overhaul that established various lobbying and campaign finance restrictions.

The bill contains an emergency clause to avoid the possibility of voters proposing a referendum to reverse a repeal.

Lobbying

“Companies Drafting Emergency Plans for Trump Tweets” by Megan Wilson and Melanie Zanona for The Hill

Ethics

“Intercepted Russian Communications Part of Inquiry into Trump Associates” by Michael Schmidt, Matthew Rosenberg, Adam Goldman, and Matt Apuzzo for The New York Times

California: “Former L.A. Coliseum Executive at the Center of Corruption Scandal Sentenced to 3 Years of Probation” by Melissa Gerber for Los Angeles Times

California: “Short-Staffed SF Ethics Panel’s Backlog of Cases Growing” by Emily Green for San Francisco Chronicle

Maryland: “Hogan Proposes Maryland Government Ethics Reforms” by Pamela Wood for The Baltimore Sun

Rhode Island: “Ex-R.I. Rep. Palumbo Charged with Embezzling; 2nd Ex-Lawmaker Arrested in a Week” by Katie Mulvaney for Providence Journal

Legislative Issues

Maryland: “Hogan Seeks Background Checks for Appointed Lawmakers” by Pamela Wood and Erin Cox for The Baltimore Sun

Campaign Finance

“With Morale in Tatters, Federal Election Commission Eyes Changes” by Dave Levinthal for Center for Public Integrity

“‘Soft Money’ Era Not Back Yet as Few Companies Contribute” by Kenneth Doyle for Bloomberg BNA

Pennsylvania: “In First Act, New Pa. Treasurer Cracks Down on Pay-to-Play Fees” by Craig McCoy and Mark Fazlollah for Philadelphia Inquirer

Elections

“From Headline to Photograph, a Fake News Masterpiece” by Scott Shane for The New York Times

Lobbying

“The Trump Lobbying Purge That Wasn’t” by Maggie Severns and Isaac Arnsdorf for Politico

Colorado: “Denver City Council Committee Stalls Vote Again on Ethics Changes” by Jon Murray for Denver Post

Massachusetts: “Could Lobbying Rules Have Saved Boston from Ill-Fated Grand Prix?” by Andrew Ryan for Boston Globe

Missouri: “House Passes HB 60 to Limit Lobbyist Gifts” by Benjamin Peters for Missouri Times

South Dakota: “Senators Reluctantly Allow Lobbyists to Stay” by Dana Ferguson for Sioux Falls Argus Leader

Campaign Finance

“SEC Settles with 10 Public Fund Money Managers Over Pay-to-Play Violations” by Hazel Bradford for Pensions & Investments

Ethics

South Carolina: “Lt. Gov. Henry McMaster Paying Off Ethics Penalties Before Becoming Governor” by Andy Shain for Charleston Post & Courier

Texas: “State Rep. Dawnna Dukes Indicted by Grand Jury” by Alex Samuels for Texas Tribune

Elections

Kansas: “Kobach Seeks Authority for Bifurcated Elections; Downplays Issue of Missing Registrations” by Peter Hancock for Lawrence Journal World

Legislative Issues

“How a Mother-in-Law Inspired a Bill to Protect Drivers” by Cleve Wootson Jr. for Washington Post

Corpus Christi, Texas City Council will meet Tuesday to discuss new recommendations to the ethics code to further tighten rules for City Council members. The Council unanimously approved the new code during a first vote last week.

If approved on the second vote, it will be formally adopted by City Council. If adopted, the modified code would ban council members from appointing people to city committees and boards if the appointee contributed more than $2,700 to the council member’s campaign in the previous election. This would not ban the contributor from appointment, but would require a council member who did not receive contributions meeting the threshold to appoint the person.

Additionally, the prospective code broadens who falls within what is called the circle of influence and indicates a conflict of interest if a person with a specific relationship to a council member would profit from a council member’s vote. The current circle of influence includes direct family members but could be expanded to cover employers of family members and household members if the new code is adopted.

Legislators will attempt to pass a major ethics reform for the second time after their effort during the 2015 legislative session failed. The plan gained wide spread support in 2015 but was ultimately defeated in the House due to a provision increasing donor disclosure requirements for dark money groups.

The new reform package, Senate Bill 14, has four main provisions to:

• Prohibit politicians convicted of felony corruption charges from collecting state pensions
• Require disclosure if companies a lobbyist is tied to have received government contracts or served as bond counsel to a governmental entity
• Decrease the amount of money lobbyists can spend on food and drinks for legislators without triggering disclosure
• Ban registered lobbyists from running for elected office

Sen. Van Taylor who is sponsoring Senate Bill 14 has said reform is needed beyond the provisions of the reform package and will continue to file additional ethics bills. While Senate Bill 14 has not yet been filed, Taylor has filed Senate Bill 137 aiming to prohibit state agencies from using state funds to employ a person who is registered as a lobbyist or who engages in lobbying activities.

Gov. Greg Abbott supports the passage of an ethics package.

Photo of the Texas State Capitol By LoneStarMike via Wikimedia Commons

Lawmakers in Washington have introduced two bills to enhance campaign finance disclosure and ethics laws.

Senate Bill 5108 aims to increase transparency of “gray money” by limiting political action committees from receiving 70 percent or more of their contributions from other political committees.

Another proposal, House Bill 1159, seeks to establish revolving door provisions requiring former state officials to take a yearlong “cooling-off” period before they can become lobbyists.

The Senate Committee on Legislative Procedure is considering a new rule to ban lobbyists from the chamber and adjacent hallways during working hours.

The committee is expected to reconvene tomorrow for a vote on the proposal. If adopted, Senate President Pro Tempore, Brock Greenfield, would have the authority to implement the new measure.

Louisiana Gov. John Bel Edwards said on Friday a special session of the legislature is likely necessary to remedy a $313 million deficit in the state’s budget. Gov. Edwards stated last week that any deficit beyond $300 million would automatically trigger a special session as it would exceed the amount he can cut from the budget on his own.

Due to Louisiana’s legal framework, a special session will allow budget cuts to be balanced for agencies across the board while higher education and healthcare would be the target if the cuts are done while the Legislature is not in session. Gov. Edwards is also considering making use of the state’s rainy day fund to close the budget gap. No date for the special session has been set but mid-February is being discussed as the target date.

National:

Russian Hackers Find Ready Bullhorns in the Media
New York Times – Max Fisher | Published: 1/8/2017

Reporters have always relied on sources who provide critical information for self-interested reasons. The duty is to publicize information that serves the public interest without falling prey to the source’s agenda. But in 2016, the source was Russia’s military intelligence agency – operating through shadowy fronts who worked to mask that fact – and its agenda was to undermine the American presidential election. By releasing documents that would tarnish Hillary Clinton and other U.S. political figures, but whose news value compelled coverage, Moscow exploited the very openness that is the basis of a free press.

Federal:

DOJ Watchdog Opens Review of Comey’s Clinton Email Investigation
Politico – Josh Gerstein | Published: 1/12/2017

The Justice Department’s internal watchdog will investigate FBI Director James Comey’s decision to publicly release information about the bureau’s investigation into Hillary Clinton’s handling of classified material. The inquiry by the department’s inspector general will focus on whether “policies or procedures were not followed” when Comey held a July 5 news conference to discuss the case, and when he sent letters to Congress just before the election that disclosed his agents were reviewing newly discovered emails pertinent to the Clinton case. Some in Clinton’s campaign blamed Comey’s actions for halting her momentum shortly before the election and helping in Donald Trump’s presidential victory.

How a Sensational, Unverified Dossier Became a Crisis for Donald Trump
New York Times – Scott Shane, Nicholas Confessore, and Matthew Rosenberg | Published: 1/11/2017

As they prepared to brief President Obama and President-elect Donald Trump on Russian interference in the 2016 election, U.S. intelligence officials decided to mention the salacious allegations that Moscow had compromising information on the incoming president. That triggered coverage of allegations that news organizations had tried to run down for months but could find no basis for publishing until they were summarized and included alongside a classified report assembled by the nation’s intelligence services. Parts of the story remain out of reach – most critically the basic question of how much, if anything, in the dossier is true. But it is possible to piece together a rough narrative of what led to the current crisis, including lingering questions about the ties binding Trump and his team to Russia.

Trump Won’t Drop Business Ties
Politico – Josh Dawsey and Darren Samuelsohn | Published: 1/11/2017

Donald Trump, insisting he will not divest himself of his vast business empire as he prepares to assume the presidency, plans instead to turn over all of his business operations to a trust controlled by his two oldest sons and a longtime associate. He will donate to the U.S. government all profits from foreign government payments to his hotels. The Trump Organization will also refrain from entering into any new deals with foreign partners, backing off from an earlier claim by Trump that his company would have “no new deals” of any kind during his presidency. The business will have to clear any new transactions with an ethics adviser. The moves fell short of the recommendations of ethics experts who have said the only way for Trump to genuinely eliminate potential conflicts is to place all his real estate holdings and other ventures in a blind trust over which neither he nor his family has any control.

From the States and Municipalities:

California – How This Former Aspiring Screenwriter Became One of California’s Campaign Finance Experts After Losing His Day Job
Los Angeles Times – Christine Mai-Duc | Published: 1/9/2017

Three years ago, Rob Pyers was as far away from politics as one could imagine: a college dropout who had been laid off from his job, binge-watching Netflix to pass the time. Today, from his one-bedroom apartment in West Hollywood, Pyers anchors one of the most trusted compendiums on state politics and is becoming the ultimate insider in the often-opaque world of campaign finance. His passion for organizing massive amounts of data has transformed the California Target Book and made his Twitter feed a go-to resource for some of Sacramento’s top operatives.

California – L.A. Politicians Propose Banning Campaign Contributions from Developers
Los Angeles Times – David Zahniser and Emily Alpert Reyes | Published: 1/10/2017

A group of Los Angeles City Council members proposed banning contributions to council campaigns from developers with projects currently or recently before the city. The motion also would consider whether to expand the city’s definition of developer to include building contractors and subcontractors, and whether to increase the enforcement staff at the city Ethics Commission to ensure more frequent audits and inspections. With the council approval of the motion, it is now up to the ethics panel and other city staff to craft implementing ordinances to bring back to the council in coming months.

Colorado – Denver Council Approves Gift-Report Rules That Require More Frequency, Better Access
Denver Post – Jon Murray | Published: 1/9/2017

The Denver City Council voted in favor of requiring more frequent reporting, more detail, and easier-to-access records of the meals, tickets, and most other gifts they receive from donors with a city interest. The new rules replace a system of annual reporting in which those gifts and other financial disclosures were not viewable by the public until seven months after the end of the reporting period, and could be obtained only by visiting the clerk’s office and paying for copies. The ordinance was one of three ethics measures considered by the council in recent months. It approved another proposal that will make lobbyists’ registrations and bimonthly reports of spending on city lobbying activities available online.

Connecticut – CT’s Largest Lobbying Firms Led by Women
HartfordBusiness.com – Patricia Daddona | Published: 1/9/2017

Paddi LeShane is an equal partner with Patrick Sullivan running Connecticut’s third largest lobbying firm – Sullivan & LeShane Inc. – with 47 registered clients. But she is not the only high-profile woman lobbyist running her own shop. In a profession long-dominated by men, women operate three of the five largest lobbying firms in Connecticut, based on number of registered clients, and their presence at the Capitol is growing. In fact, women lobbyists are far from an anomaly in the government relations field these days, industry experts say.

Kentucky – Report: Beshear officials shook down 16 workers
Louisville Courier-Journal – Tom Loftus | Published: 1/11/2017

Kentucky Gov. Matt Bevin’s investigation of former Gov. Steve Beshear’s administration has found state employees were solicited for campaign contributions both during and after working hours. The investigators interviewed 16 non-merit employees from six departments in the Beshear administration. Witnesses said “virtually all non-merit employees” in the executive branch were expected to make a financial contribution, according to the report. Kentucky law forbids specifically targeting state employees for campaign donations, unless the solicitation is part of a larger plan that includes non-state employees.

Maryland – Federal Bribery Charges Filed over Prince George’s County Liquor Licenses
Washington Post – Lynh Bui, Ann Marimow, and Arelis Hernandez | Published: 1/5/2017

Federal investigators disclosed that two Maryland lawmakers, one now out of office, are targets of a public corruption probe and expected to be charged in a bribery scheme that already has resulted in charges against two Prince George’s County liquor board officials and two business owners. The two lawmakers were unnamed in federal affidavits that outlined a bribery conspiracy in which officials were paid for favorable liquor license actions. Among those charged were David Dae Sok Son, the liquor agency’s administrator. Son solicited and facilitated bribes ranging from $1,000 to $5,000 from lobbyists and business owners, according to prosecutors. It is alleged that Son facilitated payments to an elected official for help moving a business to the county and grants the official controlled.

Massachusetts – City Hall Promised Lobbying Reform. Nothing Happened.
Boston Globe – Mark Arsenault and Andrew Ryan | Published: 1/9/2017

A year after Boston Mayor Martin Walsh promised that regulations governing municipal lobbyists would be a priority, no plan has been approved. Since February, the initiative has sat untouched in a city council committee without a hearing. Wash and council leaders may have said they supported new lobbying rules, but it appears none of them made an effective effort to follow through. That means corporations and interest groups continue to employ lobbyists to quietly influence city government with practically no public scrutiny.

Missouri – Missouri Attorney General Josh Hawley Announces New Ethics Policy
Kansas City Star – Jason Hancock | Published: 1/10/2017

Missouri Attorney General Josh Hawley banned his employees from accepting gifts from lobbyists. Hawley also will not accept campaign contributions from anyone who has a pending bid or application for state contract on which the attorney general’s office has decision-making authority. The new ethics policy comes one day after Gov. Eric Greitens signed an executive order banning state workers in the executive branch from accepting lobbyist gifts. It is unclear whether Greitens’ order is actually enforceable.

New York – AG Will Hold Off on Enforcing Parts of Lobbying Disclosure Law
Albany Times Union – Chris Bragg | Published: 1/12/2017

New York Attorney General Eric Schneiderman will not enforce certain parts of a new state ethics law requiring charitable organizations that give money to lobbying campaigns to disclose more of their donors while a federal lawsuit moves through the courts. One provision that is affected would require 501(C)3 charities to report their sources of funding when the group makes an in kind contribution or donation in excess of $2,500 to a 501(c)(4). The other provision mandates 501(c)(4) groups that spend more than $10,000 a year on any public policy communications report the name and address of donors who give $1,000 or more.

Pennsylvania – Calls Turn Developers into Donors for Peduto
Pittsburgh Post-Gazette – Rich Lord | Published: 1/8/2017

Pittsburgh Mayor Bill Peduto is making a bid for a second term, with no announced challenger. Like incumbents past, he has filled a campaign account in part by collecting from people who do business with the city. Pittsburgh’s top development official has asked developers to contribute to Peduto’s campaign, in a series of calls the administration contends were devoid of deal-making, but which others said are at odds with the spirit of reform the mayor once championed.

South Carolina – Merrill Indictment Casts Pall Over Opening of SC Legislature
The State – Avery Wilks | Published: 1/9/2017

As the South Carolina Legislature reconvenes, the top issues will include fixing the state’s roads and addressing an underfunded pension system. But a corruption investigation will cast a pall over the proceedings, raising a host of other issues. Two indictments during the past month mean the Republican-controlled Legislature will start its session without a pair of GOP legislators. Rep. Chris Corley was suspended after he was indicted on criminal domestic abuse charges. Rep. Jim Merrill was suspended after he was indicted on charges of using his public office to pocket at least $1.3 million from outside interest groups. Watchdogs say the behavior alleged in Merrill’s indictment is not all that unique at the statehouse and more indictments could be on the way.

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.

A Missouri ethics bill, being fast-tracked through the House, cleared committee yesterday with just three dissenting votes.

The bill would prohibit legislators from receiving certain gifts from lobbyists. Exemptions to the proposed ban would include honorary plaques, flowers and gifts customarily received by someone before they became a legislator.

The bill is just one of a handful of ethics bills on the legislative agenda. The measure could hit the House floor as early as Thursday.