Lobbying

Illinois: “Even After Hefty Lobbyist Fines, Rahm Pals Sought Help Via Email” by Fran Spielman for Chicago Sun-Times

Rhode Island: “City Treasurer Refuses to Pay Elorza Administration’s State House Lobbyist” by Dan McGowan for WPRI

Campaign Finance

“Political Donors Put Their Money Where the Memes Are” by Kevin Roose for New York Times

California: “Upscale Santa Monica Hotel Faces $310,000 Fine for Concealing Campaign Contributions” by Alene Tchekmedyian for Los Angeles Times

Virginia: “Republican Donor from Virginia Beach Sues GOP, Accusing the Party of Fraud Over Failed Obamacare Repeal” by Bill Bartel and Scott Daugherty for The Virginian-Pilot

Ethics

“How the Trump Hotel Changed Washington’s Culture of Influence” by Jonathan O’Connell for Washington Post

“Many Politicians Lie. But Trump Has Elevated the Art of Fabrication.” by Sheryl Gay Stolberg for New York Times

Elections

“The Socialist Movement Is Getting Younger, Thanks to One 75-Year-Old” by David Weigel for Washington Post

Let Becky Campbell catch you up on any of the news you might have missed in this weeks video digest!

The first regular session of the 128th Legislature adjourned sine die on August 2, 2017.

Lawmakers increased the age for purchasing cigarettes to 21 and overrode Gov. Paul LePage’s veto of a bill increasing access to opioid addiction services.

The general effective date for non-emergency laws passed in the first regular session is Wednesday, November 1, 2017.

National:

Need a Job? Bob Brady and the Art of the Political Buyout
Philadelphia Inquirer – Andrew Seidman and Jeremy Roebuck | Published: 7/30/2017

Prosecutors’ allegations that U.S. Rep. Robert Brady’s 2012 campaign paid a challenger $90,000 to drop out of the race may seem like a particularly brazen power play. Such transactions may look like backroom dealing, but campaign finance experts agree the line between the simply unseemly and the outright illegal can be difficult to determine. “Rarely are these situations an explicit quid pro quo: ‘I’ll give you money so you’ll drop out,'” said Kenneth Gross, who heads the political law practice at Skadden, Arps, Slate, Meagher & Flom. “But there are many shades of gray. There are often agreements to help a candidate retire [campaign] debt.”

Federal:

Democrats Introduce Bill to Strengthen Foreign Agents Law
Bloomberg BNA – Kenneth Doyle | Published: 7/31/2017

A new Senate bill would increase the U.S. Justice Department’s authority to impose civil fines people who do not comply with the Foreign Agent Lobbying Transparency Enforcement Act, which requires individuals working on behalf of a foreign government or official to register with the Justice Department within 10 days of signing a contract. In addition to fines, the legislation from Senate Democrats would create even more requirements for foreign agents. The registration laws on foreign lobbying are routinely flouted, according to Justice Department Inspector General Michael Horowitz.

Jared Kushner Stepped Down from 266 ‘Corporate Positions.’ What Does That Mean?
Washington Post – Jena McGregor | Published: 8/1/2017

In Donald Trump’s White House, Jared Kushner has many jobs. The president’s son-in-law is a senior adviser to Trump, has been charged with leading the administration’s revamping of the federal bureaucracy, and has a foreign policy portfolio that includes Mexico and the Middle East. But counting up the titles he stepped down from leading up to Trump’s inauguration, and the number looked to some, at first glance, as even more eye-popping. In a recent story following the release of his financial disclosures, it was reported Kushner had “resigned from 266 corporate positions.” Some on social media were scratching their heads. How does one person hold more than 250 positions?

No Going Back: Anthony Scaramucci’s White House job could cost him $7.5 million
USA Today – Gregory Korte | Published: 8/3/2017

Anthony Scaramucci took no salary during his short tenure as White House communication director, yet his 10-day career detour could end up costing him more than $7.5 million. That is because the hedge fund founder left the White House before he could obtain a “certificate of divestiture” giving him the special tax treatment available to federal employees who give up assets in order to avoid conflicts-of-interest. Without that certificate, the sale of Scaramucci’s Skybridge Capital to a Chinese holding company will be taxed at the capital gains rate of 15 percent. According to Scaramucci’s financial disclosure report, his share of the sale is worth at least $50 million; other estimates put that number even higher.

Trump Loyalist Mixes Businesses and Access at ‘Advisory’ Firm
New York Times – Nicholas Confessore and Kenneth Vogel | Published: 8/1/2017

Corey Lewandowski, Donald Trump’s former campaign chairperson, left the K Street firm he helped to establish amid scrutiny over his clients and his access to the president. Lewandowski then started a new consulting business. Now, as he takes on an increasingly broad role as an unofficial White House adviser, he is building a roster of clients with major interests before the Trump administration. Lewandowski appears to be positioning his new firm as an “advisory” business, part of a growing cohort of Washington, D.C. influencers who advise companies on how to navigate the government but do not register as lobbyists or disclose their clients.

From the States and Municipalities:

California: Anaheim City Council Passes County’s Toughest Restrictions on Lobbying
Orange County Register – Joseph Pimentel | Published: 8/1/2017

The Anaheim City Council voted to approve a bill that requires paid lobbyists to register with the city and file quarterly reports, and prohibits the city from hiring people from lobbying firms. Anaheim elected officials and workers also will be barred from lobbying the city for two years after they leave their government jobs. The ordinance defines a lobbyist as anyone who receives $500 or more a month to communicate with city officials for the purpose of influencing legislative or administrative actions. The council needs to take a second vote on the ordinance, slated for August 15, before it goes into effect.

California: San Diego Boosts Qualifications for Ethics Commission Members
San Diego Union-Tribune – David Garrick | Published: 8/1/2017

The city council approved four changes that aim to boost the experience and expertise of San Diego Ethics Commission members. The council amended the commission’s rules to say “priority consideration” will be given to nominees familiar with campaign finance laws, government ethics, lobbying laws, and conflict-of-interest regulations. In addition, the council clarified that rules prohibiting commission members from seeking elective office in the city do not extend to seeking other offices, such as county supervisor or the state Legislature. In September, the council is scheduled to consider amending a rule that prohibits anyone who ran for office against a current member of the council from being appointed to the commission.

Colorado: Walker Stapleton Found a Way Around Governor’s Race Donation Limits – It’s Raising Money and Eyebrows
Denver Post – Mark Matthews | Published: 8/3/2017

The longer that state Treasurer Walker Stapleton waits before formally announcing his bid for governor of Colorado, the more he can help steer unlimited sums of money toward a super PAC-style group that is expected to provide his major funding during the campaign. It is a setup that watchdogs said could stretch the limits of the state’s election law, even as it projects Stapleton’s fundraising might. And it is another sign that the 2018 race to replace Gov. John Hickenlooper is likely to surpass spending records in Colorado’s gubernatorial elections.

Maryland: Marijuana Experts Scored Prospective Md. Pot Businesses. Some Had Ties to Them.
Washington Post – Fenit Nirappil and Aaron Gregg | Published: 7/30/2017

Several of the independent experts hired to review applications to open medical marijuana businesses in Maryland had ties to companies whose materials they reviewed. The Maryland Medical Cannabis Commission said it is investigating these potential conflicts of interest. The connections, which The Washington Post discovered after a public records request, raise new questions about how the state tried to avoid conflicts in setting up a legal marijuana industry where hundreds of businesses were competing intensely for a limited number of growing, processing, and selling licenses.

Missouri: Greitens Faces More ‘Dark Money’ Questions Over No-Bid Contract with Express Scripts
Kansas City Star – Jason Hancock | Published: 7/28/2017

When Missouri Gov. Eric Greitens issued an executive order creating a prescription drug monitoring program, he said his goal was to help combat the scourge of opioid addiction in the state. His critics quickly homed in on another detail: to start the program, Greitens’ administration was giving a no-bid contract  to Express Scripts, a St. Louis-based pharmacy benefits management company that donated an undisclosed amount of money to the governor’s inauguration. It has become a familiar accusation, one that has dogged Greitens throughout his nearly eight months in office – that secret campaign contributions could be influencing his actions. Critics say this is the unavoidable byproduct of the governor’s reliance on so-called dark money.

Missouri: Lobbyist Gifts Averaging $1,760 Per Missouri Lawmaker – Less Than Year Before
Kansas City Star – Jason Hancock and Kelsey Ryan | Published: 8/3/2017

Lobbyists reported giving Missouri lawmakers and their staff members $347,368 in gifts from during the first six months of this year, which is less than the same period in 2016. Lobbyist gifts have declined every year since 2013. Observers point to numerous factors contributing to the decline, from increased public scrutiny on the practice to a series of embarrassing legislative scandals two years ago. Regardless of the reason, reform advocates say the drop is a sign that the tide is turning and lobbyist gifts are increasingly seen as a potential political liability.

Pennsylvania: Firms to Pay $9M to Feds to Resolve LCB Payola Case
PennLive.com – Mike Miller | Published: 7/27/2017

Four suppliers of alcohol to the state-owned system of liquor stores agreed to pay about $9 million in penalties for providing gifts to Pennsylvania Liquor Control Board officials. The U.S. attorney’s office in Harrisburg said the vendors, in turn, will not be prosecuted. Southern Glazer’s Wine and Spirits of Pennsylvania will pay $5 million for giving cash, all-expenses paid trips, and tickets to shows and sporting events to board officials from 2000 to 2012. Breakthru Beverage Pennsylvania, formerly Capital Wine and Spirits, and White Rock Distilleries will pay $2 million each for giving away gift cards, tickets, meals, and entertainment to the officials. Pio Imports will pay $200,000 for handing out gift cards to officials.

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.

The General Assembly will convene a special session today, July 31, 2017, to vote on an over-due budget proposal. Lawmakers failed to pass a budget during this year’s regular session and are one month past the deadline for a new two-year budget.

Senator’s will vote to approve a labor deal made between Gov. Dannel Malloy and the employee unions to fund the state’s pension system. The House already approved the deal.

The Senate is evenly split among Democrats and Republicans, so a party line vote would require Lt. Gov. Nancy Wyman, a Democrat, to break the tie.

Keeping you informed on all the government and ethics news you can use in this weeks video digest!

Lobbying

“Cash Surges to Lobby Firms in Trump Era” by Megan Wilson for The Hill

Arizona: “Arizona Legislators Attend Conference with Help from Corporations That Lobby Them at Home” by Yvonne Wingett Sanchez for Arizona Republic

Campaign Finance

Michigan: “GOP Consultant’s Purchase of Michigan Talk Radio Stations Sparks Concerns” by Paul Egan for Detroit Free Press

Ethics

California: “Is Riverside’s Ethics Code Broken? Seven Hearings, $57,000 Later, Some Say Yes” by Alicia Robinson for Press-Enterprise

Florida: “Miami Lobbyist’s Business Made $1 Million Profit on State Anti-Hazing Contract” by Arek Sarkissian for Naples News

South Carolina: “FBI Investigating South Carolina Statehouse Corruption, Could Expand Scope of State Probe” by Andy Shain, Glenn Smith, and Schuyler Kropf for Charleston Post and Courier

Elections

“Local Governments Keep Using This Software – But It Might Be a Back Door for Russia” by Jack Gillum and Aaron Davis for Washington Post

“Ivanka Trump Received at Least $12.6 Million Since 2016, Disclosure Shows” by Rachel Abrams and Jesse Drucker for New York Times

Legislative Issues

Nevada: “20 Years of Term Limits: How the faces of Nevada’s Legislature have changed” by Yvonne Gonzalez for Las Vegas Sun

Becky Campbell is back to deliver this week’s state government and ethics news you can use!

The Texas Legislature convened a special session Tuesday, July 18, 2017. Gov. Greg Abbott selected 20 bills for the agenda to be discussed by lawmakers during the session.

The priority for the session is sunset legislation to allow select state agencies to continue operating.

Among the other subjects on the agenda are bathroom privacy, property tax, and multiple education issues.

The special session comes a week after Gov. Abbott announced his bid for a second term.

Alaska’s second special session adjourned July 15 with lawmakers ending the oil tax credit program.

The Legislature may be called back into another special session soon to deal with the unfinished business of the capital budget and deficit reduction measures.

Gov. Bill Walker said in a press conference he is waiting for legislative leaders to present a compromise on the budget before he will call another costly special session.

Before the week is over, be sure to catch up on any state government and ethics news you may have missed in this week’s video digest!

The Oregon Legislature adjourned July 7, three days before its July 10 constitutional deadline.

In the final days of the session, lawmakers passed a $5.3 billion package of taxes and fees to fund transportation upgrades and another bill to reduce state spending by $200 million over the next two years.

However, lawmakers failed to pass lobbying reforms introduced at the request of Gov. Kate Brown. Following a flurry of last-minute activity in the House to pass Senate Bill 43, a bill to modify Oregon’s lobbyist registration and reporting requirements, the Senate opted to let the bill die.

National:

CNN Story About Source of Trump Wrestling Video Draws Backlash
New York Times – Daniel Victor | Published: 7/5/2017

A CNN story about an anonymous Reddit user who created a widely circulated video of President Trump wrestling the network’s logo to the ground has inspired multiple backlashes. Some criticized it as a form of blackmail. Others raised issues of journalism ethics over the network granting conditional anonymity to the user. The 28-second video and its source have been the subject of questions since Trump tweeted it as he continued his attacks on the news media. The tweet, which was retweeted by the official presidential account, has become Trump’s most-shared post on Twitter.

The New York Times Will Fly You Around the World for $135,000. Is That a Problem?
Washington Post – Paul Farhi | Published: 7/5/2017

The New York Times is organizing and promoting a 26-day tour of nine countries, which it calls “Around the World by Private Jet: Cultures in Transformation.” The price is $135,000 per person, and the traveling party will be joined by the newspaper’s Washington bureau chief Elisabeth Bumiller, columnist Nicholas Kristoff, and publisher Arthur Sulzberger, Jr. The trip and other Times-sponsored travel packages are a lucrative source of income at a time when news organizations are under increasing financial pressure. But the newspaper’s trips raise a question among journalism ethics experts about ethics and access: Is The Times effectively selling its journalists to private interests? Could, for example, corporate lobbyists or political operatives sign on and seek to influence coverage?

Federal:

Federal Ethics Chief Who Clashed with White House Announces He Will Step Down
Washington Post – Rosalind Helderman and Matea Gold | Published: 7/6/2017

Office of Government Ethics (OGE) Director Walter Shaub announced he is resigning. He will leave nearly six months before the end of his term to take a position with the Campaign Legal Center. Shaub repeatedly challenged the Trump administration on ethics issues. His outspokenness drew the ire of administration officials and earned him near-cult status among Trump’s opponents. Shaub said no one in the White House or the administration pushed him to leave, but he felt he had reached the limit of what he could achieve in this administration within the current ethics framework. The OGE’s chief of staff, Shelley Finlayson, is expected to assume the role of acting director, although Trump could appoint another senior OGE official to serve temporarily until he chooses a permanent replacement.

Florida Lobbyist Turning Trump Ties into Mega-Millions
Center for Public Integrity – Rachel Wilson | Published: 7/5/2017

Brian Ballard has long been a major lobbyist in Florida. Now, Ballard – a major Donald Trump fundraiser who also worked on the president’s transition – is out to prove he can translate his state-level lobbying success into policy victories for a slew of new clients in Washington, D.C. And he must ply his trade in the nation’s capital without looking as if he is selling access to a president who has promised to stand up to special interests. In just five months, Ballard Partners’ federal lobbying operation has generated nearly $4 million in current and contracted business from foreign and domestic lobbying clients. That is as much lobbying money as some established firms make in a year.

Justice Dept. Compliance Expert Whose Contract Ended Early Says Trump Conflicts Made Work Feel Hypocritical
Washington Post – Matt Zapotosky | Published: 7/3/2017

As a contractor for the U.S. Justice Department, Hui Chen would ask questions about companies’ inner workings to help determine whether they should be prosecuted for wrongdoing. But working in the Trump administration, Chen began to feel like a hypocrite. How could she ask companies about their conflicts-of-interest when the president was being sued over his? Though her contract was not up until September, Chen left the department in late June, then laid bare her reasons in a post on LinkedIn. The post drew attention because of Chen’s position and how blunt she was on the circumstances of her departure.

From the States and Municipalities:

Florida: Florida’s Departing Fiscal Watchdog Used Public Scrutiny as a Weapon
Bradenton Herald – Mary Ellen Klas (Miami Herald) | Published: 7/5/2017

Jeff Atwater, who resigned recently as Florida’s chief financial officer, knows where every penny of the state’s $83 billion budget goes. He also knows where to find the waste, and he has tried to expose it. expose it. Florida will spend more than $60 billion this year hiring outside contractors to do state work. But, as Atwater found when he took the job in 2011, state agencies often do not hold vendors accountable for the services they agreed to provide. Agencies allow them to charge for things not included in the bids, fail to recover damages when the vendor will not complete a task correctly or on time, and renew contracts when a vendor fails. “You don’t have to go far to track that back to a lobbyist who had a client,” Atwater explained.

Kansas: Kobach: Kansas won’t give Social Security info to Kobach-led voter commission at this time
Kansas City Star – Bryan Lowry | Published: 7/1/2017

Kansas Secretary of State Kris Kobach co-chairs President Trump’s voter fraud commission, which is tasked with finding evidence to support the president’s unsubstantiated claim that there was widespread voter fraud in the 2016 election. Kobach recently sent letters to all 50 states asking them to provide the commission with their entire voter files. The request specifically spelled out sensitive pieces of information the commission wants to obtain. As secretary of state, Kobach is tasked with supplying Kansas’s data to the Trump commission. There is just one problem: he will not be able to fully comply with his own request.

Massachusetts: Lawmakers Asked to Hit Up Lobbyists, Companies to Fund National Confab
Boston Globe – Jim O’Sullivan | Published: 6/29/2017

Massachusetts Senate Majority Leader Harriette Chandler sent an email identifying the special interests, lobbyists, and corporations that can be targeted for a solicitation appeal to help fund this summer’s National Conference of State Legislatures annual meeting in Boston. They include companies that have business before the state Legislature: retailers, banks, telecommunications firms, insurers, utilities, and a wide range of health-care providers. Organizers hope to raise roughly $2.2 million for the meeting. The document advertises special access to the week’s events for donors, and perhaps more importantly, a chance to stay on the radar of local decision-makers.

Montana: Legislature Is Rife with Conflicts of Interest – and They’re Legal
Helena Independent Record – Jayme Fraser | Published: 7/2/2017

More than a dozen state leaders said it is not unethical to bring bills that would advantage their professions or properties so long as others received the same gain and the link is openly shared. Most lauded the fact that Montana has a part-time, citizen Legislature where farmers sit on agricultural committees, lawyers craft state criminal laws, teachers tweak education policy, and business owners set industry regulations. Experience makes them experts, they say. But the Center for Public Integrity gives Montana an “F” grade for its conflict disclosure laws, which make it difficult for the public to spot self-serving votes or sanction those who enrich themselves in public office.

New Jersey: Hudson Attorney Files Ethics Complaint Against Christie Over ‘Beachgate’
Newark Star-Ledger – Michaelangelo Conte (Jersey Journal) | Published: 7/6/2017

A complaint was filed against New Jersey Gov. Chris Christie, saying he used his position unethically when he and family members basked in the sun at Island Beach State Park while the public was turned away because of a state shutdown. In accordance with the Plain Language Guide to New Jersey’s Executive Branch Ethics Standards, no person of the executive branch may obtain a “special benefit” as a result of their position …,” according to the complaint filed with the State Ethics Commission by attorney Mario Blanch.

New York: A Constitutional Convention for New York? This May Be the Year
New York Times – Lisa Foderaro | Published: 7/5/2017

Every 20 years, New Yorkers have the chance to vote whether they want to hold a constitutional convention to amend, tweak, or otherwise improve the founding document of the state. For the past half-century, voters have demurred. This year, however, academics, good-government groups and others believe the outcome of the ballot question in November may be different. And it has something to do with the current occupant of the White House. “Trump’s election emphasizes how valuable it is for states to chart their own course,” said Peter Galie, a political science professor at Canisius College.

Pennsylvania: Contractor’s Criminal Record Didn’t Discourage Business with Allentown or Reading
Allentown Morning Call – Emily Opilo | Published: 6/30/2017

Mark Neisser, then president of JCA Associates, and two other employees of the engineering firm pleaded guilty in 2004 to tax offenses for failing to report about $100,000 in printing work done for New Jersey Democrats. Along with fines and probation, Neisser was barred from working at JCA. Within a year, however, he resurfaced at T&M Associates, a New Jersey engineering firm that bought out JCA. Neisser’s record apparently did not alarm Allentown Mayor Ed Pawlowski, who accepted thousands of dollars in campaign contributions from T&M’s PAC, and raised no red flag for city officials, which awarded more than $380,000 in contracts to the firm. Neisser pleaded guilty in April to a federal corruption charge for his role in “pay-to-play” schemes in Allentown and Reading.

Texas: City OK’s Park Swings Thanks to Pint Sized Lobbyist
Fort Worth Telegram – Ann Beck | Published: 7/6/2017

When she saw that her local park did not have swings, six-year-old Maggie Fortner took matters into her own hands. She wrote a letter – in pencil and folded a half-dozen times – requesting the addition of a swing set at Donald R. Barg Park. It was mailed by Maggie’s grandmother and made its way to Matt Young, the director of parks and recreation for the city of Mansfield, who not only took notice, but action. The swings were approved and Maggie, now seven, was the guest of honor at the recent ceremony where they were opened to the public. “I’m just really excited for my swing to come, so I can swing on it every day,” Maggie said. “But I’m going to share, even with my sisters. It’s for everyone.”

Texas: Texas Supreme Court Rejects Tea Party Challenge to Campaign Finance Laws
Texas Tribune – Jim Malewitz | Published: 6/30/2017

The Texas Supreme Court upheld the state’s ban on direct corporate political donations. The Texas Democratic Party sued the King Street Patriots for violating the ban on corporate contributions by making in-kind donations to Republicans groups or causes. Democrats argued that if the group wanted to contribute to political campaigns, it should abide by disclosure rules. The justices also upheld state requirements that campaigns report contributions and expenditures, and ruled private groups can sue over alleged violations.

Vermont: Dollars Tell Only Part of Story of Pot Legalization Advocacy
VTDigger.org – Elizabeth Hewitt | Published: 7/4/2017

Despite a constant drum of advocacy on both sides of marijuana legalization in Vermont this year, lobbying reports show the sums spent were relatively modest. But the finance disclosures tell just part of the story of advocacy on the issue. The numbers on both sides added up to far less than has been spent on hot button issues in Montpelier in the past. The 2015 push to impose a sales tax on soft drinks drew more than $500,000 in spending by the American Beverage Association alone in the first quarter of the year, for instance. On the issue of marijuana, both sides claim grassroots support drives their agenda.

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.

On June 30, the North Carolina General Assembly adjourned. The resolution to adjourn has lawmakers scheduled to reconvene in August and September.

The session scheduled for August 3, 2017 will primarily address any veto overrides; however, the adjournment resolution grants lawmakers the ability to use the session to take up measures that got stuck in House and Senate negotiations in the final weeks of the regular session.

The September 6, 2017, session will mostly focus on redistricting.

The adjournment resolution also set the regular session to reconvene on May 16, 2018.