Lobbying

“What We Get Wrong about Lobbying and Corruption” by Lee Drutman for Washington Post

“Lobbyists Slow to Cash in on Republican-Led Congress” by Megan Wilson for The Hill

Campaign Finance

“Campaign Finance System Is Broken Says GOP Super-Lawyer Jim Bopp” by Michael Beckel for Center for Public Integrity

Kansas: “Ex-Lawmaker Sentenced to 18 Months in Jail for Bank Fraud” by Nicholas Clayton (Associated Press) for Kansas City Star

Ethics

“Storm Gathers around Clinton Finances” by Niall Stanage for The Hill

Illinois: “Judge Says Berrios Doesn’t Have to Pay $10,000 Ethics Fine” by Hal Dardick for Chicago Tribune

Montana: “Montana Senate Committee Tables Confirmation of Political Practices Commissioner” by Charles Johnson for The Missoulian

Texas: “Texas House OKs Change in Investigating Public Corruption” by Eva Ruth Moravec (Associated Press) for Lubbock Avalanche-Journal

Virginia: “Ex-Virginia First Lady McDonnell Tries to Get Corruption Convictions Tossed” by Matt Zapotosky for Washington Post

Procurement

Texas: “House Launches Contracting Inquiry at 11 State Agencies” by Aman Batheja for Texas Tribune

Lobbying

Arkansas: “30-Day Grace Vexes State’s Ethics Panel” by Michael Wickline for Arkansas Online

Campaign Finance

“House Quietly Passes Tax Exemption for Megadonors” by Kenneth Vogel and Hillary Flynn for Politico

“Big Money in Politics Emerges as a Rising Issue in 2016 Campaign” by Matea Gold for Washington Post

Ethics

Florida: “Florida Ethics Panel Recommends Fining Former Lawmaker David Rivera $58K” by Kathleen McGrory for Miami Herald

Florida: “Even after the Gift Ban and Reform, Freebies Flow to Florida Lawmakers” by Michael Van Sickler for Tampa Bay Times

Kentucky: “Head of State Ethics Agency to Take Top Post at Kentucky Registry of Election Finance” by Jack Brammer for Lexington Herald-Leader

New Jersey: “Ferriero Convicted on Racketeering Count; Ex-Democratic Chief Used Political Clout for Profit” by Peter Sampson for Bergen Record

New York: “Carl Heastie, New York Assembly Speaker, Benefited from Mother’s Embezzling” by Russ Buettner and David Chen for New York Times

Pennsylvania: “Montco Businessman Charged in PennDot Graft Probe” by Ben Finley for Philadelphia Inquirer

Redistricting

North Carolina: “US Supreme Court Tosses NC High Court Decision on State’s GOP-Drawn Electoral Maps” by Ann Blythe for Raleigh News & Observer

The state Ethics Commission is discussing how to administer new lobbying and campaign laws signed by Gov. Asa Hutchinson. Senate Bill 967 (now Act 1280) limits lobbyists to one “planned activity” per week and provides a 30-day grace period for officials to return improper gifts. Political contribution limits from individuals and PACs to a candidate have been raised from $2,000 to $2,700 per election.

Act 1280 also authorizes the commission to oversee new ethics laws contained in a constitutional amendment passed by voters in 2014. The amendment prohibited lobbyist gifts and corporate contributions, but did not provide the commission authority to administer the constitutional changes.

Earlier this year lawmakers passed House Bill 1002 (now Act 47), but that law only authorized the commission to issue advisory opinions concerning the amendment.

Act 1280 further provides the commission with statutory authority to administer the changes by issuing rules and investigating complaints. Act 1280 became effective upon Hutchinson’s signature.

Lobbying

“Bill Shuster Admits ‘Private and Personal Relationship’ with Airline Lobbyist” by John Bresnahan, Anna Palmer, and Jake Sherman for Politico

Campaign Finance

“Clinton Campaign Will Accept Donations from Lobbyists and PACs” by Sam Stein and Paul Blumenthal for Huffington Post

New York: “New York State Elections Board Retains a Corporate Donation Loophole” by Jesse McKinley for New York Times

Rhode Island: “Campaign Finance Measures Sent to Governor” by Jennifer Bogdon for Providence Journal

Ethics

“Clinton Foundation to Restrict Foreign Donations” by Tom Hamburger and Rosalind Helderman for Washington Post

Alabama: “Hubbard Defense Claims Prosecutorial Misconduct in Ethics Case” by Kim Chandler (Associated Press) for Greenfield Daily Reporter

Georgia: “Ga. Ethics Commission Search for Leader Down to 4 Finalists” by Kathleen Foody (Associated Press) for Columbus Ledger-Enquirer

Indiana: “Ethics Legislation Gets Closer to Becoming Law” by Alec Gray for Indianapolis Business Journal

Virginia: “Legislature Approves Ethics Bill with $100 Aggregate Gift Cap” by Jim Nolan and Markus Schmidt for Richmond Times-Dispatch

Washington: “Washington Auditor Pleads Not Guilty to Federal Indictment” by Gene Johnson and Derrick Nunnally (Associated Press) for The Sun Herald

The Illinois Secretary of State Index Department has extended the filing deadline for the Lobbyist Expenditure Report covering the period of April 1 to April 15, 2015.

Due to an ongoing service issue on the website, the Lobbyist Registration and Reporting System has been inaccessible to some users.

The April 20 deadline has been extended to April 22, 2015, at 11:59 p.m.

Senate Bill 2006 was enacted this week and effective immediately upon Gov. Cuomo’s signature. The bill amends lobbyist registration requirements by expanding the definition of municipality to include jurisdictional subdivisions with a population of 5,000 or more as well as school districts.

This change will have a large impact on interactions with local officials throughout the state of New York, potentially requiring lobbyist registration at the state level for interactions with local officials from municipalities with populations of 5,000 or more as well as with school district officials.

The registration threshold of $5,000 has not changed; however, Senate Bill 2006 has vastly broadened the spectrum of activity considered lobbying.

National:

Europe at Risk of Corruption from Lobbying – Report
BBC – Damian Grammaticas | Published: 4/14/2015

Lack of control over lobbyists threatens to undermine European democracies, said Transparency International, which is calling for new regulations. In a report assessing legal and other safeguards against opaque lobbying practices in 19 of the 28 European Union (EU) states and three EU institutions, it found only two countries – Slovenia and Lithuania – had even half the level of protection that the organization thought was necessary to protect against “undue influence” by vested interests. Among Transparency International’s concerns were lack of public documentation of who is lobbying whom, with what resources, and for what purpose. Others included failure to control the “revolving door” of staff moving between government institutions and private enterprises.

Federal:

Florida Mailman Lands a Gyrocopter on Capitol Lawn, Hoping to Send a Message
Washington Post – Mike DeBonis and Marc Fisher | Published: 4/15/2015

A postal worker from Florida delivering a protest message to Congress landed a lightweight gyrocopter on the West Lawn of the Capitol. Doug Hughes was taken into custody, with possible charges pending. He guided his aircraft at low speed through protected airspace and landed it on Congress’s front lawn to raise awareness about the amount of money spent on elections. “I have no intention of hurting anyone,” Hughes wrote on his website. The U.S. Secret Service denied anyone had tipped off its Tampa field office to Hughes’s intentions. Air defense systems did not detect the copter as it entered restricted airspace above Washington, D.C. No one tried to stop the gyrocopter.

Hillary Clinton’s Goal: Keep Bill Clinton happy, involved
Politico – Annie Karni | Published: 4/13/2015

When Hillary Clinton ran for president in 2008, her campaign staff was intimidated by her husband’s star power, concerned that she would be seen only in relation to him. Bill Clinton’s role during that campaign was an ongoing frustration for him and his team. The feeling within his inner circle, sources said, was that if he had been allowed to have a bigger say in strategy from the beginning, the campaign would not have ended up where it did. Now, after four years as secretary of state, Hillary Clinton is more firmly established as independent figure. Her new team has more confidence that she will be seen by voters as her own woman, with an identity separate from her husband. Thus they will not be afraid to place him in the spotlight when the time is right, while taking full advantage of his skills as a strategist behind the scenes.

In Accepting Bitcoin, Rand Paul Raises Money and Questions
New York Times – Eric Lichtblau | Published: 4/9/2015

In announcing his candidacy for president, U.S. Sen. Rand Paul waded into new waters when he said he would accept campaign contributions in Bitcoins, a largely untraceable virtual currency, in amounts up to $100. While some state and federal candidates in California, Colorado, New Hampshire, and elsewhere have started accepting Bitcoins, Paul is the first presidential candidate to do so. The novelty of the payment method is likely to help Paul highlight his edgy appeal to other libertarians, tech-savvy voters, young people, and others who favor Bitcoin. But it also raises questions about whether illegal contributions could make their way into campaigns more easily.

From the States and Municipalities:

Arizona – Gov. Doug Ducey Signs Elections-Related Measures
Arizona Capitol Times – Bob Christie (Associated Press) | Published: 4/14/2015

Arizona Gov. Doug Ducey signed a series of bills into law that address campaign finance, voter initiatives, third parties, and political committees. House Bill 2415 allows candidates to take up to $6,250 from an individual donor per election cycle, up from $5,000. House Bill 2649 modifies the definition of “political committee.” State Elections Director Eric Spencer said he crafted the legislation to specify that groups only need register as a political committee if they are organized for the purpose of affecting elections.

Missouri – Though Petition Seeks His Ouster, Ferguson Mayor Says He Is Best Leader for City
New York Times – John Eligon | Published: 4/12/2015

Ever since a white Ferguson police officer fatally shot an unarmed black teenager eight months ago, the city’s mayor, James Knowles, has been thrust into the spotlight in a national debate over race, class, and law enforcement. Among some activists who have taken to the streets, Knowles is viewed as a tone-deaf public official who allowed a racist and corrupt government to operate under his nose. Knowles has defended himself by saying that concerns about racial bias had not been raised on his watch as a public servant, and now that big problems had been laid bare, he was the person best qualified to help the city usher in vital reforms. But that is not enough for a handful of residents who, with support from outside groups, are trying to have Knowles recalled.

Montana – Legislature Clears Campaign Finance Bill; Headed to Governor
The Missoulian; Associated Press –   | Published: 4/15/2015

Montana lawmakers gave final approval to a bill requiring more disclosure for so-called dark money spending. Under Senate Bill 289, certain groups would be required to publicize reports on political donations and expenditures if they spend money supporting or opposing candidates or ballot issues. The measure aims to shed light on anonymous money that began flowing into elections after the U.S. Supreme Court’s Citizens United ruling.

Nevada – Bill to Toughen Nevada Campaign Finance Rules Clears Senate
Las Vegas Review-Journal – Sandra Chereb | Published: 4/9/2015

The Nevada Senate passed legislation that would bar lawmakers from accepting gifts from lobbyists and would require candidates file more frequent campaign finance reports. Senate Bill 307, which now goes to the Assembly, also would require lobbyists to report any expenditures made to lawmakers for educational trips, informational meetings, or events, though they would not constitute a gift or political contribution. The bill would require candidates to file campaign finance reports more than twice as often as they do now.

New York – Dean Skelos, New York Senate Leader, and His Son Are Said to Be Focus of Corruption Inquiry
New York Times – William Rashbaum, Susanne Craig, and Thomas Kaplan | Published: 4/15/2015

The New York Times reported a federal grand jury is considering evidence in a possible case against New York Senate Majority Leader Dean Skelos and his son. The focus is on the business dealings of Adam Skelos, including his hiring by an Arizona company that won a local government contract in New York although it was not the low bidder, and a $20,000 signing bonus he received from a title insurance company that never employed him. Investigators are trying to determine whether the elder Skelos used his political influence to help the company, AbTech Industries, which won a $12 million storm-water treatment contract from Nassau County, the senator’s home district.

Rhode Island – Lawmaker McKiernan Allowed to Work with Lobbyists under R.I. Ethics Code, Commission Says
Providence Journal – Katherine Gregg | Published: 4/14/2015

The Rhode Island Ethics Commission said ethics rules do not prohibit state Rep. Daniel McKiernan from forming a law partnership with two other attorneys who are registered lobbyists. The commission noted the code generally allows public officials to enter into most private business associations. It then limits their ability to use their office to benefit themselves or their partners by requiring them to not participate in matters that would financially affect the business. The ethics panel lost its jurisdiction over the General Assembly following a 2009 state Supreme Court decision.

Tennessee – Tennessee House Votes Bible as Official State Book
The Tennessean – Dave Boucher | Published: 4/15/2015

The state House passed a bill to make the Bible the official book of Tennessee, despite opposition from Republican leaders and an attorney general’s opinion that the measure would violate the state and federal constitutions. Rep. Jerry Sexton, a former pastor, argued his proposal reflects the Bible’s historical, cultural, and economic impact in Tennessee. But several opponents raised concerns about putting the Bible on par with other more innocuous state symbols like the official salamander, tree, and beverage. The measure would need to be approved by the Senate before heading to the desk of Gov. Bill Haslam, who opposes it.

Texas – Lawmakers in No Rush to Disclose Wining and Dining
Texas Tribune – Jay Root | Published: 4/15/2015

Two bills aimed at requiring disclosure of lobbyist spending on Texas lawmakers and officials are on the verge of expiring in the Senate State Affairs Committee, according to the sponsor of the measures. Sen. Kirk Watson said he has been told not to expect even a public hearing on the bills, let alone a committee vote. Technically, under current law, a lobbyist who spends more than $114 on any one state official has to report the name of the person who is being entertained with food and drink. But that almost never happens. Watson wants to reduce the reporting threshold to $50, and he would require a detailed disclosure even if multiple lobbyists banded together to get around that lower limit.

Utah – Gay Rights, Religious Rights and a Compromise in an Unlikely Place: Utah
Washington Post – Niraj Chokshi | Published: 4/12/2015

A federal judge in 2013 struck down Utah’s ban on same-sex marriage, giving a lift to activists who had been pushing the state to adopt legislation protecting gay men and lesbians against discrimination in areas such as housing and employment. And as the question of same-sex marriage worked its way through the courts, ultimately winning a date before the U.S. Supreme Court, the Church of Jesus Christ of Latter-day Saints grew eager to reach an amicable compromise on gay and religious rights. It was determined to avoid what church officials saw as a polarized debate in several other states. Eight days after a compromise bill on the issue was introduced, it was signed into law with support from the gay rights group Equality Utah, the American Civil Liberties Union of Utah, and the church, uniquely influential in a state where about three in five residents are Mormon.

Virginia – Virginia General Assembly Vote on Gifts Must Wait until Friday
Roanoke Times – Markus Schmidt and Jim Nolan (Richmond Times-Dispatch) | Published: 4/15/2015

Virginia lawmakers delayed a vote on ethics reform legislation over concerns the measure could be interpreted as putting a $100 lifetime limit on gifts to public officials from lobbyists and others who have financial interests with the state. The General Assembly instead decided to reconvene on April 17 to clarify that the $100 gift limit was per year. Legislators were expected to go along with that change as well as one intended to make it clear they cannot accept trips to widely attended events.

West Virginia – Ethics Commission Grapples with Trinkets Ban
Charleston Gazette – Eric Eyre | Published: 4/9/2015

The West Virginia Ethics Commission will refine its guidance for a soon-to-be enacted law that prohibits elected officials from using public funds to feature their name or likeness on specific items.  House Bill 2457 prevents “public officials, their agents or anyone on public payroll” from using their name or likeness on any publicly owned vehicles, in advertising, or on trinkets – small items such as magnets and cups. Commissioners said there needs to be clarification on are what exactly a trinket is and what type of advertising is prohibited.

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 reconvened Wednesday to review several proposed legislative amendments offered by Gov. Terry McAuliffe, including changes to the ethics reform bill. The bill, as sent to the governor, changes the lobbyist gift limit from $250 per year from any one source to $100 per gift.

The governor, fearing this would allow legislators to accept an unlimited number of gifts as long as they were less than $100 each, suggested a $100 per year limit from any one source. Lawmakers voiced their own concerns with the amendment, stating its wording could be construed to create a $100 lifetime limit.

Much to the dismay of some members, the General Assembly will meet again on Friday, April 17 to clarify the issue and hold a vote.

Photo of the Virginia State Capitol by Anderskev on Wikimedia Commons.

Lobbying

“Europe at Risk of Corruption from Lobbying – Report” by Damian Grammaticas for BBC

“Lawmakers in No Rush to Disclose Wining and Dining” by Jay Root for Texas Tribune

Campaign Finance

“REBNY Members Gave a Tenth of all N.Y. Campaign Money” by Bill Mahoney for Capital New York

Ethics

“Postal Worker Lands Helicopter on U.S. Capitol Grounds to Make Special Mail Delivery” by Eric Katz for GovExec.com

“Kate Brown Takes Questions as Lawmakers Air Ethics Proposal” by Denis Theriault for Portland Oregonian

“Senate Urged to Restore Ethics Powers” by Jennifer Bogdon and Katherine Gregg for Providence Journal

“John Doe Reform Bill Stalls in Legislature” by M.D. Kittle for Watchdog.org

Elections

“In Perception Primary, It’s Folksy Hillary Clinton vs. Statesmen-Looking Jeb Bush and Marco Rubio” by Patrick Healy for New York Times

“Chelsea’s Invisible Hand” by Kenneth Vogel for Politico

Legislative Issues

“Tennessee House Votes Bible as Official State Book” by Dave Boucher for The Tennessean

“Lack of Virginia’s General Assembly Openness Is Criticized” by Dave Ress for The Daily Press

A bill introduced in the U.S. House of Representatives this week would permanently close the revolving door allowing members of Congress to become lobbyists once they leave office.

House Resolution 1740 removes the cooling off periods currently in the statutes. These periods require former House members to wait one year and former Senate members to wait two years before becoming lobbyists.

The bill’s sponsor Rep. Rod Blum states in his press release, “This bill would finally close the revolving door between Congress and special interest groups, restoring integrity to our political system and ensuring that politicians focus on representing their constituents instead of catering to lobbying groups who offer a lucrative post-electoral career.”

Photo of the United States Capitol at night by Martin Falbisoner on Wikimedia Commons.

Lobbying

“Pillow Talk Tests Ethics When K Street Marries Capitol Hill” by Eliza Newlin Carney for Roll Call

“Ex-Lawmakers Swing through the Revolving Door” by Fredreka Schouten for USA Today

Rhode Island: “Lawmaker McKiernan Allowed to Work with Lobbyists under R.I. Ethics Code, Commission Says” by Katherine Gregg for Providence Journal

Campaign Finance

Arizona: “Gov. Doug Ducey Signs Elections-Related Measures” by Bob Christie (Associated Press) for Arizona Capitol Times

District of Columbia:”Treasurer of Former D.C. Council Campaign Is Sentenced to Prison” by Julie Zauzmer for Washington Post

Maine: “Bill Seeks to Tax PAC-to-PAC Transfers in Maine” by Scott Thistle for Maine Sun Journal

Maryland: “Senate Passes Disclosure Bill for Inauguration Donors” by The Associated Press for WMDT

Ethics

New York: “Fervent Preet Bharara Gets a Judicial Scolding” by Peter Henning for New York Times

Elections

“Hillary Clinton’s Goal: Keep Bill Clinton happy, involved” by Annie Karni for Politico

Legislative Issues

Utah: “Gay Rights, Religious Rights and a Compromise in an Unlikely Place: Utah” by Niraj Chokshi for Washington Post

Q. Our organization is under the impression that we don’t have to register as lobbyists at the federal level if we keep our lobbying activity isolated to our internal employees.  I don’t think this is accurate.  Can you let me know the registration requirement for federal lobbying?

A. You are correct to be skeptical of this viewpoint.  Keeping lobbying activity isolated to in-house personnel does not impact the need to register.  Registration at the federal level is based on three criteria.  All three must be met in order to warrant registration, or, stated differently, registration is required when all three criteria are met.  The criteria are:

1. An organization spends or is expected to spend at least $12,500 on lobbying activity during a quarterly period;
2. An organization has at least one employee who spends 20 percent of his or her time engaged in lobbying activity; and
3. That same 20 percent employee makes more than one lobbying contact.

When considering whether the monetary threshold has been met, all expenses must be considered, including, compensation and reimbursed expenses associated with lobbying activities of all employees, overhead, payments to outside lobbyists, and the portion of any dues paid to outside membership organizations that are allocated toward lobbying.  Likewise, when determining whether an individual employee meets the 20 percent standard, all time engaged in any activity that is intended to support lobbying contacts must be considered including background and preparatory work, research, strategy sessions and conversations.

Once your organization meets all three thresholds, registration with the House and Senate is required within 45 days.  As a federal registrant, quarterly activity reporting is required as well as semiannual contribution reporting.

You can directly submit questions for this feature, and we will select those most appropriate and answer them here. Send your questions to: experts@stateandfed.com.

(We are always available to answer questions from clients that are specific to your needs, and we encourage you to continue to call or e-mail us with questions about your particular company or organization. As always, we will confidentially and directly provide answers or information you need.) Our replies to your questions are not legal advice. Instead, these replies represent our analysis of laws, rules, and regulations.

Lobbying

“Suddenly, ‘Schumerland’ Is the Place to Be” by Megan Wilson for The Hill

Hawaii: “Tobacco-Free Coalition Cleared on Lobbying Charges” by Nancy Cook Lauer for West Hawaii Today

Texas: “Local Government, School Lobbying in Ethics Crosshairs” by Jay Root for Texas Tribune

Campaign Finance

“Wealthy Donors on Left Launch New Plan to Wrest Back Control in the States” by Matea Gold for Washington Post

Kentucky: “Former Kentucky Lawmaker Pleads Guilty to Campaign Finance Violations” by John Cheves for Lexington Herald-Leader

Ethics

Georgia: “Common Cause Takes Advocacy Efforts to Georgia Voters” by Carlton Fletcher for Albany Herald

Missouri: “Though Petition Seeks His Ouster, Ferguson Mayor Says He Is Best Leader for City” by John Eligon for New York Times

Washington: “Residents Fight to Save Bothell Golf Course from Developers, Mayor” by Lynn Thompson for Seattle Times

Elections

“Marco Rubio Announces 2016 Presidential Bid” by Ashley Parker and Alan Rappeport for New York Times

“Hillary Clinton Starts to Detail Rationale for Run as Campaign Begins” by Amy Chozick for New York Times

Lobbying

Nevada: “Bill to Toughen Nevada Campaign Finance Rules Clears Senate” by Sandra Chereb for Las Vegas Review-Journal

New York: “Avella Proposes Lobbying Ban for Political Consultants” by Josefa Velasquez for Capital New York

Campaign Finance

“In Accepting Bitcoin, Rand Paul Raises Money and Questions” by Eric Lichtblau for New York Times

Ethics

New Mexico: “Equity Firm to Pay $3 Million to SIC to Avert Legal Fight” by Dan Boyd for Albuquerque Journal

Texas: “Senate Votes to Let Home-County Prosecutors, Not Austin, Handle Elected-Official Ethics Cases” by Will Weissert (Associated Press) for Greenfield Daily Reporter

Washington: “State Public Disclosure Commission Director Resigns” by Jim Brunner for Seattle Times

West Virginia: “Ethics Commission Grapples with Trinkets Ban” by Eric Eyre for Charleston Gazette

Elections

“The G.O.P. Presidential Field Looks Chaotic. It’s Not.” by Nate Cohn for New York Times