October 28, 2019 • Written by Jim Sedor

Monday’s LobbyComply News Roundup

Campaign Finance National: “Corporate Political Transparency: It’s optional” by Dave Levinthal for Center for Public Integrity Elections National: “Civil Rights Leaders Thought They’d Figured Out How to Deal with Facebook. But Now They Are ‘Livid.’” by Craig Timberg for Washington […]

October 25, 2019 • Written by Jim Sedor

News You Can Use Digest – October 25, 2019

National/Federal ‘C’est Moi’: Mitt Romney admits to running secret Twitter account under the alias ‘Pierre Delecto’ MSN – Allyson Chiu (Washington Post) | Published: 10/21/2019 For years, Pierre Delecto’s presence on Twitter largely went unnoticed. Operating a bare-bones account with the […]

National/Federal

‘C’est Moi’: Mitt Romney admits to running secret Twitter account under the alias ‘Pierre Delecto’
MSN – Allyson Chiu (Washington Post) | Published: 10/21/2019

For years, Pierre Delecto’s presence on Twitter largely went unnoticed. Operating a bare-bones account with the handle @qaws9876, the user’s limited activity revealed only an interest in politics – namely, supporting Sen. Mitt Romney (R-Utah). So, when “Pierre Delecto” started trending recently on the social media platform, people were understandably confused. But they learned Pierre Delecto was not a bot or a random Romney superfan, but an account run by the senator himself. As Delecto, Romney, who has become one of President Trump’s most vocal GOP critics, used the account to like critical tweets about the president, while also occasionally defending himself against detractors.

Congress Has Long Sought to Bar Foreign Campaign Contributions
Roll Call – Todd Ruger | Published: 10/18/2019

In the decades before President Trump asked Ukraine to launch an investigation into his main political rival in the upcoming presidential election, Congress tried again and again to keep foreign nationals out of American elections and government decisions. The lawmakers’ adversaries over the years sound as if they come straight out of Hollywood scripts: the Nazi party in the 1930s, the Philippine sugar industry in the 1960s, a Greek industrialist in the 1970s, an international businessperson turned Chinese government agent in the 1990s. Congress passed laws to ban what they saw as threats to the integrity of elections, foreign policy, and national security. Foreign nationals found loopholes or new ways to contribute to campaigns.

Conservative Political Fundraiser Pleads Guilty to Felony
Center for Public Integrity – Sarah Kleiner | Published: 10/22/2019

One of Washington, D.C.’s most controversial political fundraisers pleaded guilty to one count of making a false statement to the FEC. Scott Mackenzie “caused the submission of a number of materially false, fictitious and fraudulent statements and representations” to the FEC from 2011 to 2018 on behalf of two PACs: Conservative StrikeForce and Conservative Majority Fund. Mackenzie has for years served as treasurer of more than 50 PACs, about a dozen of which purport to raise money for political and social causes but spend most of the money they raise from donors on fundraising, salaries, and overhead. “… The publicly available evidence shows [Mackenzie] has been at the heart of many of the worst scam PACs …,” said Adav Noti of the Campaign Legal Center.

Contradicting Trump, Ukraine Knew of Aid Freeze Before It Became Public
MSN – Andrew Kramer and Kenneth Vogel (New York Times) | Published: 10/23/2019

To Democrats who say that President Trump’s decision to freeze a $391 million military aid package to Ukraine was intended to bully Ukraine’s leader into carrying out investigations for Trump’s political benefit, the president and his allies have had a simple response: There could not have been any quid pro quo because the Ukrainians did not know the assistance had been blocked. But in fact, word of the aid freeze had gotten to high-level Ukrainian officials by the first week in August, according to interviews and documents obtained by The New York Times. The problem was not a bureaucratic glitch, the Ukrainians were told then. To address it, they were advised, they should reach out to Mick Mulvaney, the acting White House chief of staff, according to the interviews and records.

Facebook Takedowns Show New Russian Activity Targeted Biden, Praised Trump
MSN – Tony Romm and Isaac Baker-Stanley (Washington Post) | Published: 10/21/2019

Facebook introduced new efforts meant to fine-tune its defenses against disinformation ahead of the presidential election. They seek to remedy some vulnerabilities that malicious actors have tapped in recent months to spread false or misleading posts, photographs, and videos. Facebook also said it removed a network of Russian-backed accounts that posed as locals weighing in on political issues in swing states, praising President Trump and attacking former Vice President Joe Biden, illustrating the familiar threat of Russian interference looms over the next U.S. presidential race. Researchers said the efforts demonstrated how those seeking to interfere in American politics continue to exploit contentious topics, including racial and religious fault lines.

Family Ties Have Troubled Many National Politicians
Newsday – Tom Brune | Published: 10/21/2019

Former Vice President Joe Biden is not the only national politician who has been accused of having a conflict-of-interest involving a family member. He joins a long list that includes some of the nation’s earliest leaders and President Trump. It is a thorny problem, lawyers and experts specializing in government ethics said, as family members find ways to cash in on their ties to politicians’ prominence and power despite attempts to curb that exploitation with laws and federal personnel restrictions. Over the past 50 years, family scandals, many involving siblings, have erupted on presidents, prompting public outcry, investigations, and eventually new laws.

‘Get Over It’: Defiant chief of staff rides out storm over Ukraine remarks
Minneapolis Star Tribune – Michael Crowley and Maggie Haberman (New York Times) | Published: 10/19/2019

On the day after he made more news than any chief of staff in recent White House history, Mick Mulvaney went about his business as usual. But Mulvaney’s job has been anything but normal since the news conference at which he seemingly undermined the Trump administration’s strategy for avoiding impeachment by acknowledging the president had sought a quid pro quo for providing Ukraine with American aid. In the chaotic aftermath, Trump’s Republican allies are questioning Mulvaney’s savvy and intelligence. As he approaches his anniversary in the White House, Mulvaney finds himself in a strange netherworld.

How a Beltway Power Couple and a Political Newcomer Learned to Thrive in the Trump Era
Houston Chronicle – Michelle Ye Hee Lee, Michael Scherer, Josh Dawsey, and Anu Narayanswamy (Washington Post) | Published: 10/23/2019

When Brad Parscale was looking for advice about how to navigate Washington. D.C. after running the digital strategy for Donald Trump’s upstart presidential campaign in 2016, the political newcomer turned to a Beltway power couple. Katie Walsh and Mike Shields, both former chiefs of staff at the Republican National Committee, advised him on how to make the most of his new perch, he said. Since then, the three have helped each other flourish inside the Republican Party ecosystem, recommending each other’s services to top party officials and candidates. Together, the trio have broad influence across the GOP, drawing millions of dollars from 23 party committees and organizations since the beginning of 2017. Their dominance has alarmed other GOP strategists, who say the three have a disproportionate amount of sway and have helped each other sustain that power.

Lobbying Business Booms Despite Gridlock and Investigations
Bloomberg Law – Megan Wilson | Published: 10/21/2019

Lobbying revenue continued to increase throughout 2019, despite turbulence surrounding the Trump administration and partisan gridlock on Capitol Hill. The third quarter of 2019 was lucrative for many K Street firms, with 20 reporting an uptick in revenue, compared to the same time last year. In addition, 16 of those firms also had increased lobbying fees from January through September of this year, compared to 2018. It is a continuation of a growth in lobbying fees since President Trump took office.

Man to Plead Guilty to Funneling Foreign Money to US Campaigns
Courthouse News Service – Nathan Solis | Published: 10/22/2019

A California venture capitalist agreed to plead guilty to falsifying records to hide his work as a foreign agent and making illegal campaign contributions on behalf of foreign entities seeking to influence U.S. elections. Imaad Zuberi has donated large sums of money to both Republicans and Democrats, including $900,000 to President Trump’s inauguration committee and $600,000 to then-candidate Hillary Clinton. Zuberi told foreign nationals and representatives from foreign governments that he could influence American policies in their favor through his influence in Washington and flaunted his apparent sway to create business and investment opportunities for clients and himself, federal prosecutors say.

New EPA Chief in New England Barred from Many Decisions Because of Conflicts
Boston Globe – Dave Abel | Published: 10/22/2019

A former chemical industry lobbyist who was recently appointed as regional administrator of the Environmental Protection Agency has been barred from overseeing a range of vital issues in New England because of conflicts-of-interest that could compromise his public duties. Dennis Deziel, who spent five years as director of federal government affairs for Dow Chemical before his appointment in August, must recuse himself from decisions involving nearly one-fifth of the region’s Superfund toxic waste sites, the agency’s ethics office said. The scope of Deziel’s entanglements has alarmed environmental groups, who say his years at Dow potentially undermine his ability to regulate certain industries. Dow is one of the world’s largest manufacturers of chemicals and has a history of violating environmental rules.

Rep. Katie Hill Investigated Over Allegations of Improper Relationship with Staffer
Politico – John Bresnahan | Published: 10/23/2019

The House ethics committee announced it has launched an investigation into U.S. Rep. Katie Hill following allegations she engaged in an improper sexual relationship with a male congressional staffer. Hill denied that allegation and she blamed the controversy on an “abusive husband” whom she is in the midst of divorcing. But in a letter to her constituents sent out just before the committee announcement, Hill admitted to having an “inappropriate” relationship with a female campaign staff member during her run for Congress in 2018. Hill apologized for the relationship.

Republicans Storm Closed-Door Impeachment Hearing as Escalating Ukraine Scandal Threatens Trump
Washington Post – Toluse Olorunnipa, Josh Dawsey, and Mike Debonis | Published: 10/23/2019

Republicans’ defense of President Trump grew more frantic with House members storming a closed-door meeting, delaying the testimony of an impeachment witness as the GOP grappled with a growing abuse-of-power scandal centered on the president. A group of Trump’s congressional allies escalated their complaints about the impeachment inquiry by barging into a secure facility on Capitol Hill where a Pentagon official was to testify before the House Intelligence Committee. Their intrusion, which caused the testimony to be delayed for about five hours over security concerns, came a day after the top U.S. diplomat in Ukraine testified under oath that the White House had threatened to withhold military aid unless the Ukrainian government announced investigations for Trump’s political benefit.

The Student Vote Is Surging. So Are Efforts to Suppress It.
MSN – Michael Wines (New York Times) | Published: 10/24/2019

After decades of treating elections as an afterthought, college students have begun voting in force. Their turnout in the 2018 midterms was more than double the rate in the 2014 midterms, easily exceeding an already robust increase in national turnout. Energized by issues like climate change and the Trump presidency, students have suddenly emerged as a potentially crucial voting bloc in the 2020 general election. And almost as suddenly, Republican politicians around the country are throwing up roadblocks between students and voting booths. Students overwhelmingly lean Democratic, with three in four supportive of impeaching President Trump, according to a recent poll.

The Trump Administration Says It Has Violated Its Own Ethics Pledge
ProPublica – Derek Kravitz | Published: 10/23/2019

A government-wide review has acknowledged for the first time that at least several Trump political appointees violated the administration’s ethics pledge, which was put in place to try to “drain the swamp” by imposing lobbying restrictions and penalties. The details are tucked away in the Office of Government Ethics’ (OGE) latest annual report, which attracted little notice when it was released this summer. While President Trump’s ethics pledge was weaker than previous rules, the OGE still found violations in 2018 at three federal agencies: The Environmental Protection Agency, the Department of the Interior, and the National Labor Relations Board. No federal agency reported a violation of the Trump ethics pledge in 2017.

Trump Lawyer Says Even if He Shot Someone on Fifth Ave., He Can’t be Prosecuted
MSN – Benjamin Weiser and Azi Paybarah (New York Times) | Published: 10/23/2019

A federal appeals panel expressed skepticism that President Trump had a right to block state prosecutors in Manhattan from enforcing a subpoena that sought his personal and corporate tax returns for the last eight years. The judges peppered a lawyer for Trump with questions, expressing skepticism about the president’s argument that he was immune from criminal investigation. A lower court judge earlier rejected Trump’s claim, which has not previously been tested in the courts. A deal struck with the district attorney’s office will allow the president time to seek a speedy review of the appellate ruling in the U.S. Supreme Court on the condition he ask that the court hear the case in its current term, which ends in June.

Trump’s Cabinet Meetings Have Become About Everything but the Business of His Cabinet
Stamford Advocate – Josh Dawsey (Washington Post) | Published: 10/21/2019

Under President Trump, Cabinet meetings have become less about the business of his Cabinet than an opportunity for the president to invite in the assembled press to boast of his own accomplishments, lash out at his critics, and to hear the praise flow forth from advisers. The gatherings, with the press in attendance, often stretch for 60 to 90 minutes. Much of the most recent Cabinet meeting seemed about self-validation as Trump’s allies describe a presidency under siege, and a president frustrated with an onslaught of criticism.

U.S. Envoy Says He Was Told Release of Ukraine Aid Was Contingent on Public Declaration to Investigate Bidens, 2016 Election
MSN – Anne Gearan, Rachael Bade, Karoun Demirjian, and John Wagner (Washington Post) | Published: 10/22/2019

The senior U.S. diplomat in Ukraine said he was told release of military aid was contingent on public declarations from Ukraine that it would investigate the Bidens and the 2016 election, contradicting President Trump’s denial that he used the money as leverage for political gain. Acting Ambassador William Taylor Jr. testified in the House impeachment probe of Trump that he stands by his characterization that it was “crazy” to make the assistance contingent on investigations he found troubling. Taylor walked lawmakers through a series of conversations he had with other U.S. diplomats who were trying to obtain what one called the “deliverable” of Ukrainian help investigating Trump’s political rivals.

Why Trump Dropped His Idea to Hold the G7 at His Own Hotel
MSN – Maggie Haberman, Eric Lipton, and Katie Rogers (New York Times) | Published: 10/20/2019

He knew he was inviting criticism by choosing his own luxury golf club in Miami for the site of a gathering of world leaders at the Group of 7 summit in June, President Trump told his aides opposed to the choice, and he was prepared for the inevitable attack from Democrats. But what Trump was not prepared for was the reaction of fellow Republicans who said his choice of the club, the Trump National Doral, had crossed a line, and they could not defend it. So, Trump did something that might not have been a surprise for a president facing impeachment but was unusual for him: he reversed course, abruptly ending the uproar touched off earlier by the announcement of his decision by Mick Mulvaney, the acting chief of staff.

From the States and Municipalities

California – Company at Center of Insurance Commissioner’s Contributions Scandal Sold Without California Approval
San Diego Union-Tribune – Jeff McDonald | Published: 10/18/2019

The insurance conglomerate behind tens of thousands of dollars in political donations to California Insurance Commissioner Ricardo Lara has been sold, even though state regulators say they have not approved the transaction. Applied Underwriters was purchased for $920 million by its founder, Steven Menzies. The agreement is significant because Menzies is a central figure in a scandal surrounding Lara, who met privately with the insurance executive multiple times and accepted more than $46,000 in campaign donations from people connected to his company.

California – Former Mayor Anthony Silva Sentenced, Charges Dismissed Against Sharon Simas
Stockton Record – Nicholas Filipas | Published: 10/21/2019

Former Stockton Mayor Anthony Silva was formally sentenced to one felony conflict-of-interest charge that closed a three-year financial-malfeasance case. A judge sentenced Silva to 90 days in county jail. Silva was also ordered to pay $19,783 in restitution, be under three years of formal probation, and was given a lifetime ban on owning guns or ammunition. The conflict-of-interest charge stemmed from Silva’s decision to direct $5,000 in public money from a mayoral discretionary fund to the Kids Club of Stockton before leaving office in 2013.

California – Glendale Officials Take First Steps to Regulate Lobbying
Los Angeles Times – Lila Seidman | Published: 10/17/2019

Glendale City Council members directed the city attorney’s office to draft an ordinance that would require lobbyists to identify themselves, who they are working for, and how much they are being compensated. Each year, lobbyists would need to register with the city for a fee or face possible civil or criminal penalties. Quarterly reports with the information would be available to Council members and the public, under the tentative regulations. If the ordinance is adopted, Glendale would join cities like Los Angeles, Santa Monica, and West Hollywood, which all regulate how lobbyists interact with local elected officials in Southern California.

California – Real-Estate Company Admits Violating Campaign-Finance Rules with $7,000 in Contributions to LA Council District 4 Candidate
Los Angeles Daily Breeze; City News Service – | Published: 10/22/2019

Hillcrest LLC, a company owned by real estate developer Bruce Makowsky, was fined $71,000 for reimbursing donors to a Los Angeles City Council candidate during the 2015 election. City law prohibited individuals from contributing more than $700 to a council candidate in 2015. Campaign donors are barred from giving in the name of someone else, a practice that can be used to sidestep limits on how much each person can donate. Ethics Commission staffers recommended a penalty of $71,000 for the company, the maximum it could have been fined, because reimbursing donors is “an extremely serious violation,” they wrote in a report.

Connecticut – State Says Pols Missed Deadline to Have Their Day in Court
Connecticut Mirror – Mark Pazniokas | Published: 10/22/2019

State Sen. Rob Sampson and his predecessor, Joe Markley, wanted a legal debate over political speech and campaign finance law; all they got before the Connecticut Supreme Court were arguments over missed deadlines. They say the State Elections Enforcement Commission (SEEC) violated their First Amendment rights by imposing fines of $5,000 on Sampson and $2,000 on Markley over campaign mailers promoting them in 2014 as reliable defenders against the policies of Gov. Dannel Malloy, a Democrat. At issue was the question of whether the mailers were just a benefit to Sampson and Markley, who disagreed with Malloy on everything from taxation to criminal justice? Or did they also benefit Tom Foley, the Republican nominee for governor in 2014? The SEEC viewed the attacks on Malloy by Sampson and Markley as at least partially benefitting Foley, making the mailers an improper contribution to Foley.

Florida – Being Poor Shouldn’t Stop Florida Felons from Voting, Judge Rules in Amendment 4 Case
Tampa Bay Times – Lawrence Mower | Published: 10/19/2019

Florida must allow felons to vote if they cannot afford to pay back their court-ordered fees, fines, and restitution, a federal judge ruled in a case challenging the Legislature’s crackdown on Amendment 4. U.S. District Court Judge Robert Hinkle wrote in his decision that the historic amendment voters passed in 2018 allowing felons to vote does require they pay back their financial obligations to have their voting rights restored. But if they are too poor to pay those costs, the judge ruled, that should not keep them from voting. The judge granted a preliminary injunction that prevents Florida officials from using the bill to keep the 17 plaintiffs suing the state from voting. But the ramifications of Hinkle’s ruling is expected to affect other felons seeking to vote.

Florida – Tallahassee Ethics Officer Demands $450,000 and An Apology in Exchange for Early Exit
USA Today – Jeff Burlew (Tallahassee Democrat) | Published: 10/23/2019

Julie Meadows-Keefe, Tallahassee’s independent ethics officer, announced in July she was planning to step down in February 2020, a move that came after mounting criticism over a personal relationship she had with an appointed city official and other matters. Mayor John Dailey questioned her during a recent city commission meeting and later wrote an opinion piece in a local newspaper, accusing her of “unethical behavior.” Meadows-Keefe is now demanding that Dailey apologize to her and the city pay her $450,000 in exchange for her stepping down by the end of the year. “[The mayor] has pushed publicly and privately for her termination in a malicious and calculated way,” Marie Mattox, a lawyer for Meadows-Keefe, wrote in a letter to the city attorney.

Maine – Candidate for Maine Governor Paid Clean Elections Money to Future Employer
Portland Press Herald – Scott Thistle | Published: 10/20/2019

Former state Sen. Garrett Mason, who is running as a Clean Elections candidate for governor last year, directed taxpayer money to a consulting firm that hired him just after he lost the primary election in June. Mason spent just over $100,000 in taxpayer funds with Eaton River Strategies, a firm headed by lobbyist Kathie Summers-Grice. Although the move does not violate any state campaign finance laws or ethics rules, it raises concerns that Clean Elections funds could be used by candidates for personal financial gain or as a gateway to lucrative employment when they lose an election or leave public office.

Maine – Ethics Commission Staff Recommends Against Investigating Sara Gideon for Finance Violation
WGME – Caitlin Andrews (Bangor Daily News) | Published: 10/23/2019

The staff of Maine’s ethics commission is recommending against investigating state House Speaker Sara Gideon for her past use of a partially corporate-funded committee to reimburse herself for political contributions, saying Gideon, who is running to replace U.S. Sen. Susan Collins, did not violate state law because she did not intend to conceal the true source of the donations. Gideon’s use of her state political committee, which has since dissolved, to reimburse herself for political contributions came to light over the summer and became the subject of a campaign finance complaint.

Michigan – Judge Weighs Rep. Larry Inman Fundraising: Bribery or protected speech?
MLive.com – John Agar | Published: 10/17/2019

A federal judge refused to dismiss bribery and extortion charges against Michigan Rep. Larry Inman. He contends he accepted legal campaign contributions. Prosecutors allege Inman appeared willing to sell his vote – and influence others, if they received campaign contributions, too – in repealing Michigan’s prevailing-wage law. U.S. District Court Judge Robert Jonker said the case “inevitably raises First Amendment issues about the line between criminal bribery or extortion, on the one hand, and protected political activity on the other hand.” He thinks the issue should be left to a jury.

Michigan – Report: Duggan gave Make Your Date favor; chief of staff ordered emails deleted
Detroit News – Christine Ferretti and George Hunter | Published: 10/21/2019

Detroit’s inspector general released a scathing report that found Mayor Mike Duggan “unilaterally” directed city resources toward assisting a nonprofit, and his chief of staff and other top aides abused their authority by directing staff to delete emails detailing those efforts, undermining “the public’s trust in an open and transparent government.” The finding of preferential treatment for Make Your Date, a nonprofit aimed at addressing preterm births, is the culmination of a sixth-month probe by the inspector general’s office, which is calling on the city to reform its policies and staff training, and take disciplinary action against three employees, including Alexis Wiley, the mayor’s chief of staff.

New York – Campaign Panel Weighs Bigger Public Match for Local Donations
Newsday – Michael Gormley | Published: 10/22/2019

The commission charged with implementing the public funding of political campaigns in New York moved away from a straight six-to-one match of state funds to all donations toward an idea proposed by an Uber driver that would provide a far greater match to contributions from within a candidate’s legislative district. The commission voted analyze a twenty-to-one match for donations made by constituents from within the legislative district the candidate seeks to represent, and no match for contributions from outside the district. The concept would apply only to state legislative races, not statewide races for governor, lieutenant governor, comptroller, or attorney general.

New York – Council Refers King Ethics Complaints to Outside Authorities
Politico – Joe Anuta and Sally Goldenberg | Published: 10/23/2019

Outside enforcement organizations may be looking into ethics allegations against New York City Councilperson Andy King, meaning the Bronx lawmaker could face further reckoning beyond the suite of sanctions his colleagues are set to vote on. A report by the Committee on Standards and Ethics paints a damning portrait of King’s conduct over the last several years. The document alleges King misused city resources to benefit himself and his wife, who works for influential healthcare workers union. In one instance, city resources were allegedly used to support a retreat and a family wedding in the Virgin Islands. The report also accused King of mounting a campaign of retaliation and intimidation against staffers he believed were cooperating with council investigators.

New York – NY Ethics Agency Defends Probe of Rape Survivor
New York Post – Carl Campanile | Published: 10/23/2019

The New York Joint Commission on Public Ethics (JCOPE) is standing by its decision to investigate a rape survivor for violating lobbying laws by taking out billboards supporting a new sex abuse victims’ law. Kat Sullivan had allegedly used cash from the legal settlement in her rape case to pay $5,000 for the ads backing the Child Victims Act. The probe of an average person like Sullivan drew criticism from lawmakers. But JCOPE says the lobbying laws apply to everyone equally, correspondence reveals. “The Commission cannot pick and choose who is covered out of sympathy or hostility. Efforts to query a source or to urge compliance is mandated by the Legislature …,” JCOPE Chairperson Michael Rozen wrote in a letter to lawmakers.

Oklahoma – Oklahoma PAC Accused of Repeated Violations of Campaign Finance Laws
The Oklahoman – Nolan Clay | Published: 10/19/2019

A PAC secretly and illegally funneled thousands of dollars from a wealthy Missouri businessperson’s companies to Oklahoma politicians, the Oklahoma Ethics Commission alleged after an investigation. The commission sued Oklahoman’s For Healthy Living for financial penalties, saying it “repeatedly and intentionally violated the campaign finance laws of Oklahoma.” The only donors to the PAC over the last four years were two Missouri companies, Capital Health Management and Affordable Equity Partners Inc. The commission alleged Capital Health Management donated $35,000 and Affordable Equity Partners donated $8,000 in that time period in violation of state ethics rules against corporate donations. The president of both companies is Jeffrey Smith.

Pennsylvania – New Oversight Committee Examines Flaws in Pennsylvania’s Lobbying Disclosures
The Center Square – Dave Lemery | Published: 10/22/2019

Politicians and voters of all political stripes have lamented the influence of lobbying on governmental policy, with accusations that lawmakers’ votes can be bought for the right price. The members of the new House Oversight Committee in Pennsylvania sought to examine that issue in their first meeting when they convened to discuss a forthcoming report on lobbying disclosures in the state. Witnesses described a system where individuals or entities that want to get the attention of lawmakers – known as “principals” – can hire lobbying firms to bring their issue to the attention of lawmakers. If the lobbying firm uses gifts, trips to restaurants, or other forms of entertainment in an attempt to influence policy, that has to be reported to the state.

Pennsylvania – Pennsylvania State Lawmakers Are Hiding Millions in Campaign Spending. And It’s All Legal.
Pittsburgh Post-Gazette – Angela Couloumbis (Spotlight PA), Mike Wereschagin, Brad Bumsted, Paula Knudson, Sam Janesch, and Alyssa Bierdeman (The Caucus) | Published: 10/22/2019

An investigation found Pennsylvania lawmakers are shielding sometimes lavish campaign spending by not reporting the details to the public, making it difficult to assess if those expenditures was appropriate. From 2016 through 2018, state House and Senate candidates spent nearly $3.5 million that cannot be fully traced based on the information they disclosed. Charges included foreign trips, country club memberships, and a DNA test kit. In many cases, the expenditures were listed on publicly available documents with entries such as “meals” or “travel,” and a total amount, with no other details. Lawmakers have dismissed efforts to impose more restrictions, arguing they are unnecessary as long as details about where the money comes from, and how it is spent, are available to the public.

Rhode Island – Ex-Mattiello Operative Charged with Money Laundering; Says He’s Been Made ‘Fall Guy’
Providence Journal – Katherine Gregg | Published: 10/18/2019

Political operative Jeffrey Britt was indicted on a money-laundering charge in connection with his work on Rhode Island House Speaker Nicholas Mattiello’s 2016 reelection campaign. The indictment charges Britt with one felony count of money laundering and one misdemeanor count of making a prohibited campaign contribution and “disguising it as the contribution of someone else,” state Attorney General Peter Neronha said at a news conference. The grand jury investigated alleged shenanigans in the final weeks of Mattiello’s tough 2016 campaign in his Cranston home district, and specifically the roles played by Britt and potentially other aides in arranging and financing a mailer endorsing Mattiello.

Texas – Texas House Speaker Dennis Bonnen Says He Won’t Seek Re-Election After Scandal
Fort Worth Star-Telegram – Tessa Weinberg | Published: 10/22/2019

Texas House Speaker Dennis Bonnen announced he will not seek re-election to the Legislature or as leader of the House following growing calls for his resignation. The announcement comes three months after conservative activist Michael Quinn Sullivan alleged Bonnen offered writers of the group’s news site long sought-after House press credentials in exchange for the organization’s firepower in targeting 10 Republican incumbents in their re-election bids. In July, Sullivan revealed he had secretly recorded the meeting. The audio appears to largely support Sullivan’s allegations and spurred a flood of renewed calls from House members for Bonnen to step down.

West Virginia – Billionaire Governor’s Family Farms Get Subsidy
AP News – Anthony Izaguirre | Published: 10/17/2019

A farming business owned by the family of West Virginia’s billionaire governor has received $125,000 in soybean and corn subsidies, the maximum allowed from a federal program meant to help American farmers through the U.S. trade war with China. There is no evidence Gov. Jim Justice did anything illegal. But at least one analyst said the payments to the richest man in West Virginia are unseemly, given his wealth. And the subsidies have thrown the spotlight again on his business empire and the potential conflicts-of-interest it poses.

Wyoming – Wyoming’s First Public Records Ombudsman Aims to Boost Transparency
Laramie Boomerang – Tom Coulter (Wyoming Tribune Eagle) | Published: 10/21/2019

After working for nearly 30 years in Washington, D.C., Ruth Van Mark was not expecting to take on a new job in Wyoming. Instead, she was planning to retire back in the state where she grew up. A few months later, Van Mark was announced as the state’s first public records ombudsman. In the position, she will settle disputes over records requests, determine the scope of what can be redacted in requests, and coordinate with state agencies to make the process for submitting requests more straightforward. The position was created this year. Cassie Craven, a lobbyist with the Wyoming Liberty Group, said there was lot of testimony last session about records disputes between state agencies and citizens that had gone wrong in court.

October 23, 2019 • Written by Jim Sedor

Wednesday’s LobbyComply News Roundup

Campaign Finance California: “L.A. Ethics Commission Fines Company for Campaign Finance Violations” by Staff for MyNewsLA.com Pennsylvania: “Pennsylvania State Lawmakers Are Hiding Millions in Campaign Spending. And It’s All Legal.” by Angela Couloumbis (Spotlight PA), Mike Wereschagin, Brad Bumsted, Paula […]

October 22, 2019 • Written by Mario Dalessandro

Portland Auditor Updates Proposed Lobbyist Regulation Changes, Opens Public Comment Period

After reviewing public comments, the Portland Auditor has further revised and offered clarification to proposed rule changes to the city’s lobbying regulations. The amended rules are available at https://www.portlandoregon.gov/auditor/proposedrules. An additional public comment period will be open until November 18.

October 21, 2019 • Written by Jim Sedor

Monday’s LobbyComply News Roundup

Campaign Finance Oklahoma: “Oklahoma PAC Accused of Repeated Violations of Campaign Finance Laws” by Nolan Clay for The Oklahoman Rhode Island: “Ex-Mattiello Operative Charged with Money Laundering; Says He’s Been Made ‘Fall Guy’” by Katherine Gregg for Providence Journal Ethics […]

October 18, 2019 • Written by Jim Sedor

News You Can Use Digest – October 18, 2019

National/Federal After Arrest of Giuliani Associates, FEC Chair Says Commission Struggling to Enforce Rules The Hill – Justin Wise | Published: 10/14/2019 FEC Chairperson Ellen Weintraub lamented the agency’s inability to enforce campaign finance law, saying in an interview there “may […]

National/Federal

After Arrest of Giuliani Associates, FEC Chair Says Commission Struggling to Enforce Rules
The Hill – Justin Wise | Published: 10/14/2019

FEC Chairperson Ellen Weintraub lamented the agency’s inability to enforce campaign finance law, saying in an interview there “may well be a lot of money that is slipping into our system that we just don’t know about.” Her remarks came in the wake of the campaign finance violation charges leveled against two associates of Rudolph Giuliani, President Trump’s personal attorney. Florida businesspeople Lev Parnas and Igor Fruman were arrested and accused of orchestrating a straw donor scheme that funneled money to numerous Republican committees, including a $325,000 contribution to a pro-Trump super PAC.

Appeals Court Rules Against Trump Over His Financial Data
Anchorage Daily News – Ann Marimow, Spencer Hsu, and David Fahrenthold (Washington Post) | Published: 10/11/2019

Congress can seek eight years of President Trump’s business records from his accounting firm, a federal appeals court ruled in one of several legal battles over access to the president’s financial data. The U.S. Court of Appeals for the District of Columbia Circuit upheld Congress’s broad investigative powers and rejected the president’s bid to block lawmakers from subpoenaing the documents. The case is one of several clashes between the Democrat-controlled House and the Republican president over Trump’s data that is expected to reach the U.S. Supreme Court. In this case, the judges ruled Trump’s arguments, that the subpoenas were invalid because Congress lacked a “legitimate legislative purpose” for its subpoenas, were incorrect.

Biden’s New Ethics Plan Includes Constitutional Amendment to Publicly Finance Elections
NBC News – Mike Mernoli | Published: 10/14/2019

Seeking to turn the page from what he called the most corrupt administration in American history, former Vice President Joe Biden rolled out a new comprehensive ethics plan that includes a constitutional amendment to publicly finance elections. It also calls for a ban on lobbying by foreign governments and stricter protocols to ensure a firewall between the White House and prosecutorial decisions at the Justice Department. The proposal comes as Biden is under assault from President Trump and his allies over unsubstantiated allegations that he acted as vice president to shield his son from an investigation of a Ukrainian energy company whose board he served on.

Democratic Lobbyists Bristle at Party’s Attack on K Street
The Hill – Alex Gangitano | Published: 10/16/2019

With presidential candidates like U.S. Sens. Elizabeth Warren and Bernie Sanders calling for tougher rules on how the lobbying world works, Democratic lobbyists find themselves walking a difficult tightrope. The lobbying industry has pushed back on those proposals as unconstitutional, arguing they would be a restriction on First Amendment rights. Democratic lobbyists said while those proposals may be intended to target K Street'[s biggest spenders, they could also silence voices for progressive causes. A persistent argument against tougher restrictions on lobbying is they would lead to more so-called shadow lobbyists, those who do lobbying work but do not register.

Department of Justice’s Lobbyist Registry Available, but with Technical Issues
The Weekly – Giovanna Garofalo | Published: 10/16/2019

Puerto Rico’s lobbyist registry is now available for the general public to use. The registry is essentially a table that will list lobbyists under their name, number of registrations, clients who they represent, and authorized staff. When visitors access the page now, they will realize that it does not feature a single lobbyist. The Department of Justice and the Puerto Rico Innovation and Technology Service are still ironing out technical issues with the registry.

FEC Chairwoman Says She ‘Will Not Be Silenced’ after Republican Lawmaker Requests Ethics Investigation
CNN – Kaatina Iyer | Published: 10/10/2019

FEC Chairperson Ellen Weintraub said she “will not be silenced” after a Republican member of Congress requested that she be investigated for ethics violations for her public statements. Rep. Rodney Davis, who was named an honorary state chairperson for President Trump’s reelection campaign, sent a letter to FEC Inspector General Christopher Skinner, asking him to investigate Weintraub’s “refusal … to recuse herself” from any matters involving the president. He argued that Weintraub’s public statements regarding Trump on Twitter undermines her nonpartisan position.

Fourth Defendant in Giuliani Associates’ Case Arrested at New York Airport
Stamford Advocate – Devlin Barrett (Washington Post) | Published: 10/16/2019

David Correia, the fourth defendant in a campaign finance case involving business associates of President Trump’s personal lawyer Rudolph Giuliani, was arrested at a New York City airport. Correia has been charged with participating in a scheme to use foreign money to build political support for a fledgling recreational marijuana business in Nevada and other states, according to an indictment that also charged Lev Parnas and Igor Fruman with conspiracy and making false statements to campaign finance regulators. The third defendant in the case, a California man named Andrey Kukushkin, was arrested recently, according to authorities.

Giuliani Is Said to Be Under Investigation for Ukraine Work
MSN – Michael Schmidt, Ben Protess, Kenneth Vogel, and William Rashbaum (New York Times) | Published: 10/11/2019

An investigation by federal prosecutors into President Trump’s personal lawyer Rudolph Giuliani is tied to the case against two of Giuliani’s associates who were arrested recently on campaign finance related charges. The associates were charged with funneling illegal contributions to a member of Congress whose help they sought in removing the American ambassador to Ukraine, Marie Yovanovitch. Giuliani has denied wrongdoing, but he acknowledged he and the associates worked with Ukrainian prosecutors to collect potentially damaging information about Yovanovitch. Federal law requires American citizens to disclose any contacts with the government or media in the U.S. at the direction or request of foreign politicians or government officials.

Giuliani Pressed for Turkish Prisoner Swap in Oval Office Meeting
MSN – Jo Becker, Maggie Haberman, and Eric Lipton (New York Times) | Published: 10/10/2019

During an Oval Office meeting with President Trump and Secretary of State Rex Tillerson in 2017, Rudolph Giuliani pressed for help in securing the release of a jailed client, an Iranian-Turkish gold trader, as part of a potential prisoner swap with Turkey. Giuliani’s request provoked an immediate objection from Tillerson, who argued it would be highly inappropriate to interfere in an open criminal case. In the end, no such prisoner swap took place. But the episode has opened a new chapter in Giuliani’s efforts to interject himself into the Trump administration’s diplomacy while at times representing clients with a direct interest in the outcome.

House Readies Bill Aimed at Stopping Foreign Election Interference
Courthouse News Service – Brandi Buchman | Published: 10/16/2019

House lawmakers are pushing for the passage of a third bill to protect the integrity of U.S. elections, with the latest piece of legislation aimed at closing loopholes that allow foreign nationals to spend money on American campaigns. The Stopping Harmful Interference in Elections for a Lasting Democracy Act proposes increasing transparency for campaigns, parties, and PACs by requiring them to report any attempt by a foreign government or individual to influence an election to the FEC and the FBI. The bill also requires U.S. campaigns to establish standards for compliance.

How Amazon.com Moved into the Business of U.S. Elections
Reuters – Nandita Bose | Published: 10/15/2019

The expansion by Amazon Web Services (AWS) into state and local elections has gathered steam since the 2016 U.S. presidential vote. More than 40 states now use one or more of Amazon’s election offering. So do the two main political parties, former Vice President Joe Biden, and the FEC. While it does not handle voting on election day, AWS, along with a network of partners, now runs state and county election websites, stores voter registration rolls and ballot data, facilitates overseas voting by military personnel, and helps provide live election-night results. The company’s efforts are welcomed by election administrators, who in interviews said they often struggle with keeping outdated systems up to date at the local level.

Never-Before-Seen Trump Tax Documents Show Major Inconsistencies
ProPublica – Heather Vogell | Published: 10/16/2019

Documents obtained by ProPublica show stark differences in how Donald Trump’s businesses reported some expenses, profits, and occupancy figures for two Manhattan buildings, giving a lender different figures than they provided to New York City tax authorities. The discrepancies made the buildings appear more profitable to the lender, and less profitable to the officials who set the buildings’ property tax. The discrepancies are “versions of fraud,” said Nancy Wallace, a professor of finance and real estate at the University of California-Berkeley. “This kind of stuff is not OK.” Two former Trump associates, Michael Cohen and Paul Manafort, are serving prison time for offenses that include falsifying tax and bank records, some of them related to real estate.

Rep. Elijah Cummings, Democratic Leader and Regular Trump Target, Dies at 68
MSN – Jenna Portnoy and Antonia Farzan (Washington Post) | Published: 10/17/2019

U.S. Rep. Elijah Cummings, who gained national attention for his principled stands on politically charged issues in the House, his calming effect on anti-police riots in Baltimore, and his forceful opposition to the presidency of Donald Trump, died on October 17. He was 68 years old. Cummings served as chairperson of the Congressional Black Caucus and then ranking member chair of what became the House Oversight and Reform Committee. He became a leading voice against the Trump administration’s efforts to add a citizenship question to the 2020 Census. He was also a forceful opponent of an immigration policy that separated thousands of children from their parents after they illegally crossed the southern U.S. border. Cummings spearheaded probes into security clearances issued by the White House and payments made during the 2016 campaign to silence women who claimed to have had affairs with Trump.

Those Foreign Business Ties? The Trump Sons Have Plenty Too
ENM News – Eric Lipton, Steve Eder, and Ben Protess (New York Times) | Published: 10/11/2019

For the children of the politically powerful, personal business and public dealings can often be indistinguishable, especially when private projects depend on foreign governments that are looking to bolster ties with Washington. As the president has become embroiled in a scandal involving his interactions with Ukraine, Donald Trump Jr. and his brother Eric have taken to attacking Hunter Biden, the son of former Vice President Joe Biden, for his business dealings in Ukraine and China. The brothers have accused him of leveraging his family name for personal gain while his father served in the Obama administration. But the high-profile attack roles being played by President Trump’s eldest sons have now thrust their own business dealings into the spotlight too. Both sons have operated and promoted the Trump family business overseas during their father’s presidency, even as he retains ownership.

Trump Emoluments Case Over His D.C. Hotel Gets Second Chance in Legal Challenge
Connecticut Post – Ann Marimow (Washington Post) | Published: 10/15/2019

A federal appeals court order revived a lawsuit claiming President Trump is illegally profiting from foreign and state government visitors at his hotel in Washington, D.C. The U.S. Court of Appeals for the Fourth Circuit agreed to rehear the lawsuit, brought by the attorneys general of Maryland and the District of Columbia, which was dismissed over the summer by a three-judge panel of the court. The brief order set oral arguments before a full panel of judges for December 12 and essentially gives the novel lawsuit, which tests the anti-corruption emoluments provisions of the Constitution, a second chance.

Trump Has Awarded Next Year’s G-7 Summit of World Leaders to His Miami-Area Resort, the White House Said
Washington Post – Toluse Olorunnipa, David Fahrenthold, and Jonathan O’Connell | Published: 10/17/2019

Next year’s G-7 gathering of the leaders of the world’s biggest economies will take place at President Trump’s Doral golf resort outside of Miami. The decision is without precedent in modern American history – the president used his public office to direct a massive contract to himself. Doral provides more revenue to Trump than any other hotel or golf club. But, in recent years, this keystone property has fallen into steep decline, with profits falling 69 percent in three years. Trump is already facing lawsuits for allegedly violating the Constitution’s ban on receiving “emoluments” from foreign governments. By doing this, he could be inviting a huge increase in the very line of business that these lawsuits are scrutinizing.

Ukraine Scandal Snags Pete Sessions’s Congressional Comeback Bid
MSN – Catie Edmondson (New York Times) | Published: 10/10/2019

Former U.S. Pete Sessions, who is seeking a return to Congress, was caught in the fallout of the Ukraine scandal when he was referred to in the indictment of two presidential allies accused of campaign finance allegations. Sessions is described as “Congressman-1” in the indictment of Lev Parnas and Igor Fruman, who were charged with illegally funneling foreign money to American candidates and campaigns. “Congressman-1” is described as having received large campaign contributions from Parnas and Fruman, and whom Parnas asked for help in removing the U.S. ambassador to Ukraine, Marie Yovanovitch.

Violent Spoof Video of Trump Killing His Critics Shows How Memes Have Reshaped Politics
Denver Post – Drew Harwell and Tony Romm (Washington Post) | Published: 10/14/2019

A meme video, a spoof derived from a bloody action film, shown at President Trump’s Miami-area golf resort drew outrage from some for its depiction of Trump shooting journalists and attacking political figures who have been critical of him, both Democrats and Republicans. Some warned the clip and others like it could incite real-world violence. But that outrage also helped ensure the video would be circulated more widely. Becca Lewis, who researches online subcultures and media manipulation for Stanford University, said the video’s sharing showed how such memes have become a potent force for political expression and propaganda. The meme creators, she said, routinely sought mainstream attention for the memes in a way that would make the shocking content seem more and more acceptable.

Warren Dares Facebook With Intentionally False Political Ad
ENM News – Cecilia Kang and Thomas Kaplan (New York Times) | Published: 10/12/2019

U.S. Sen. Elizabeth Warren is playing a game of dare with Facebook. The Democratic presidential candidate bought an ad on the social network that purposefully includes false claims about Facebook’s chief executive, Mark Zuckerberg, and President Trump to goad the social network to remove misinformation in political ads ahead of the 2020 presidential election. “We decided to see just how far it goes,” Warren wrote, calling Facebook a “disinformation-for-profit machine.” Warren’s actions follow a brouhaha over Facebook and political ads in recent weeks. Mr. Trump’s campaign recently bought ads across social media that falsely said Joe Biden offered $1 billion to Ukrainian officials to remove a prosecutor who was overseeing an investigation of a company associated with Biden’s son Hunter.

Warren Targets ‘Big Money’ in Campaigns, Rules Out Donations from Tech and Bank Executives
The Hill – Tal Axelrod | Published: 10/15/2019

U.S. Sen. Elizabeth Warren White House unveiled a sweeping new proposal to eliminate “big money” in politics, taking aim at donations from PACs and urging her fellow presidential contenders to be transparent in their fundraising. Warren said her plan would end the practice of federal candidates taking corporate PAC money and ban foreign corporate influence in American elections. She would also seek to require presidential campaigns to disclose their major donors, bundlers, and finance events and update campaign finance laws to address online political advertising.

From the States and Municipalities

Arizona – Group Trying to Escape Fine for Violating Arizona Campaign Finance Laws
Arizona Daily Star – Howard Fischer (Capitol News Services) | Published: 10/16/2019

A group that spent $260,000 attacking a 2014 foe of Arizona Gov. Doug Ducey in his first gubernatorial race is trying again to escape paying a fine for violating state campaign finance laws. Attorneys for the Legacy Foundation Action Fund contend the Citizens Clean Elections Commission lacked the power to impose a $96,000 fine for the commercials targeting former Mesa Mayor Scott Smith. They say there was no proof the ad was done to advance the political fortunes of anyone else in the Republican gubernatorial primary. Beyond that, the lawyers contend the commission lacks the authority to enforce the campaign finance laws.

Arkansas – Speaking as Taxpayer in TV Ad, Griffin Says; His Appearance Raises Campaign Questions
Arkansas Democrat-Gazette – Alyson Hoge | Published: 10/6/2019

Lt. Gov. Tim Griffin appears in a television advertisement financed by a nonprofit issue advocacy group called Arkansas Competes. The ad will air about two months after Griffin said he will be a candidate for governor in the 2022 election to succeed Asa Hutchinson. Griffin said he is appearing in the ad “as an Arkansas taxpayer deeply concerned about issues facing our state.” Arkansas Competes Director Carl Vogelpohl said the ad would not run afoul of state law. He noted a state Ethics Commission advisory opinion that said if a non-candidate committee organized as a 501 (c) (4) runs issue ads in Arkansas not asking for votes for or against a specific candidate, the committee’s activity would not constitute a contribution or non-monetary contribution under state law.

California – FBI Investigating Whether Sacramento Pot Businesses Paid Bribes to Public Officials
Sacramento Bee – Sam Stanton and Ryan Sabalow | Published: 10/14/2019

The FBI has been investigating whether Sacramento-area marijuana businesses have made payoffs to public officials in the region in exchange for favorable treatment and license approvals. The investigation comes two months after the FBI announced in a podcast that it was “seeing a public corruption threat emerge in the expanding cannabis industry” and asked for any tips involving public corruption and the industry, which generates millions of dollars in revenue and involves licenses that can go for as much as $500,000.

Connecticut – Government for Sale? Lobbyists Spent $32M This Year to Influence Legislative Session
Manchester Journal Inquirer – Eric Bedner and Will Healy | Published: 10/12/2019

More than $32.3 million was spent this year by nearly 1,000 lobbying organizations to push their agendas and try to persuade Connecticut lawmakers into siding with them on key pieces of legislation. Most of that money was spent during the legislative session that ran from January to June. During the 2019 session, the two most lobbied areas of policy involved health care and hospitals and general government, which includes taxes and contracts Peter Lewandowski, executive director of the Office of State Ethics, said the “overwhelming majority” of lobbyists comply with the regulations as the business is mostly “reputation-based.”

Florida – $500 Ethics Fine Against Dennis McDonald Now Upped to $10,000, with Governor’s Reprimand and Censure
FlaglerLive.com; Staff – | Published: 10/10/2019

A three-year-old ethics case against former Flagler County Commission candidate Dennis McDonald could have ended last June with a $500 fine to which he had agreed. Instead, and for lack of answering a few questions and correcting the record, McDonald now faces a $10,000 fine and a public censure and reprimand by the governor. The Florida Ethics Commission meets on October 25 to vote on the case. The commission voted unanimously at its June meeting to reject a settlement with McDonald because he had not corrected the mistakes on his financial disclosure forms, however minor, that had led to the case against him.

Illinois – Caught on Tape: Ex-Ald. Danny Solis sought money from Jerry Reinsdorf group
Chicago Sun-Times – Tim Novak | Published: 10/11/2019

With FBI agents secretly listening in, then-Chicago Ald. Danny Solis was caught on a wiretap four years ago discussing plans to solicit campaign money from a development group whose owners include sports mogul Jerry Reinsdorf, chairperson of the Chicago Bulls and White Sox, that needed his help at City Hall. Michigan Avenue Real Estate Group needed Solis’ approval for a $40 million apartment complex they later built in his ward. During a call, Solis explained, over the worries of an unidentified aide that the developers were still awaiting the alderman’s approval for the project, how he planned to solicit Reinsdorf’s business partner Thomas Meador, for campaign money. Solis wore a wire for nearly two years, secretly recording conversations at City Hall.

Maryland – ‘Maryland Is Very Corrupt’: Charges against former Del. Tawanna Gaines add to state’s corruption history
Baltimore Sun – Elliott Davis (Capital News Service) | Published: 10/17/2019

Former Maryland Del. Tawanna Gaines is scheduled to be arraigned on a federal wire fraud charge. She is charged with using an undisclosed PayPal account to accept donations to her campaign finance committee. Gaines is not alone. The arraignment adds her to the growing list of politicians in the state who have either committed crimes or ethical violations. Gaines is the third Democratic delegate from Prince George’s County alone to be charged or convicted since 2018.

Michigan – Lights Turn Green for Traffic Signal Company That Hired MDOT Director
Detroit Free Press – Paul Egan | Published: 10/14/2019

The Michigan Department of Transportation (MDOT) made a major shift in who supplies its traffic signal control equipment, just as its former director has taken an executive position with the company that benefits from the change. MDOT used to buy all its traffic signal control equipment and software from Siemens Mobility. But that changed last October, the same month Kirk Steudle, who, for the previous 12 years headed up the department, was named senior vice president of Econolite Systems, a Siemens competitor based in California. In October 2018, the state agency changed its specifications to allow the purchase of traffic signal controllers supplied by Econolite in addition to those made by Siemens.

New York – Big Questions Remain for NY’s Public Campaign Finance Plan
AP News – Marina Villeneuve | Published: 10/14/2019

A New York commission began crafting a small-donor public campaign financing system but has yet to tackle big issues such as when the program would launch and how it would be implemented. The system will provide up to $100 million in public financing to candidates for offices such as governor and Legislature who get enough small private donations. The Public Campaign Financing Commission has until December 1 to announce rules that will become law unless lawmakers hold a rare end-of-year special session to reject them.

New York – Loophole Allows People with City Business to Shower Thousands on Candidates Despite Contribution Limits
New York Daily News – Anna Sanders | Published: 10/14/2019

Contributions from people doing business with New York City were restricted in 2007 and a database was created to ensure candidates and donors complied with the law. Lobbyists pushing city policies and seeking municipal contracts for their clients are included. So are top executives and owners of companies who already have contracts and those lobbying the city. But the law allows them to act as bundlers for other donors without the same contribution limits. Critics say the arrangement leaves the door wide open for powerful and well-connected New Yorkers to influence elections and sway politicians in their favor.

New York – New York Can Now Bring Charges Against Presidential Pardon Recipients
Politico – Bill Mahoney | Published: 10/16/2019

Gov. Andrew Cuomo signed legislation that will let New York prosecutors bring charges against individuals who have received presidential pardons for related crimes. The bill was explicitly written to address fears that President Trump might use his pardon power to interfere with criminal investigations. The U.S. Supreme Court has found the constitutional prohibition on double jeopardy does not apply to the states. It does not bar state prosecutors from bringing charges against individuals who have already been tried on similar federal crimes. But New York’s existing law included additional safeguards that prohibited these second trials.

North Carolina – Solar Group Solicits Campaign Cash for Top Lawmaker, Tied Directly to Legislative Action
WBTV – Nick Ochsner | Published: 10/16/2019

A solar industry group solicited campaign contributions for a North Carolina legislator in an email to its members and tied the request for funds directly to action he had taken days earlier on a bill opposed by the group. The request came from the North Carolina Clean Energy Business Alliance on behalf of state Rep. John Szoka, chairperson of the House Committee on Energy and Public Utilities. Chris Carmody, the executive director of alliance, asked the organization’s members to donate to Szoka up to $5,200, the maximum contribution allowed under the law. The email noted Szoka and a second lawmaker for their opposition to Senate Bill 559, which would authorize Duke Energy to set energy rates for a multi-year period with relaxed oversight from state regulators.

North Dakota – North Dakota Ethics Commission Receives First Complaint
Bismarck Tribune – Jack Dura | Published: 10/10/2019

North Dakota’s new Ethics Commission has received its first complaint, but its details are not immediately available. The commission, which has met only twice, does not yet have investigative procedures for handling complaints. The panel’s next meeting agenda includes items such as establishing a website and office space and writing job descriptions for hiring staff. The commission may write and adopt rules related to transparency, elections, lobbying, and corruption, but it has yet to begin or even broach a rule-making process.

Ohio – The Right Way for a State to Purge Voters Might Be to Show How Wrong It Is
ENM News – Nicholas Casey (New York Times) | Published: 10/14/2019

Ohio is a battleground state and the site of some of the country’s strictest voting laws, from voter ID requirements to a “use-it-or-lose-it” provision that lets officials drop voters seen as inactive. That has led critics to contend parts of the state are regularly disenfranchised, largely in purges aimed at those who have died or moved away, but which also hit real voters who do not learn they cannot vote until Election Day. Rather than purge the voter rolls behind closed doors as had been done in the past, the state released the full list and gave it to advocacy groups to check. The groups said they found the list was riddled with errors. Around 40,000 people should not have been on it, the state determined. One of the names to be purged as an inactive voter was Jen Miller, director of the League of Women Voters of Ohio.

Rhode Island – Facing Penalties, IGT Discloses $776K More Was Spent in Push for New Contract
Providence Journal – Katherine Gregg | Published: 10/16/2019

Facing potential penalties of up to $5,000 and revocation of its right to lobby in Rhode Island, lottery giant IGT and an affiliate have now publicly disclosed a total of $1.2 million in spending in July, August, and September on the company’s campaign for a no-bid, 20-year contract extension to provide the technology and machines for the Rhode Island Lottery, a state-run entity that produced $397 million in revenue last year. While the company disclosed the $129,000 it paid a dozen lobbyists between July 1 and September 30, it had not disclosed how much it paid its public-relations consultants, advertisers, and affiliates to try to win public and legislative support for the contract extension.

South Carolina – SC Supreme Court Justices Grill Special Prosecutor in Quinn Public Corruption Case
The State – John Monk | Published: 10/15/2019

South Carolina’s five Supreme Court justices fired question after question at special prosecutor David Pascoe about why he wanted to undo the conviction and no-prison sentence of ex-state Rep. Rick Quinn Jr. in a high-profile public corruption case. At the heart of Pascoe’s argument was his claim that the judge who sentenced Quinn erred in allowing Quinn to plead guilty to what Pascoe asserted was a non-crime. The Supreme Court overturning the conviction could allow either a new trial or a guilty plea to a lawful charge, Pascoe has said in briefs on the case.

Texas – Dallas Council Member Violated City Code with VisitDallas Tickets, Ethics Commission Says
Dallas News – Hayat Norimine | Published: 10/15/2019

Dallas City Councilperson Casey Thomas violated the ethics code by failing to disclose over $1,600 worth of event tickets he received from VisitDallas, the city Ethics Advisory Commission said. Ahead of the commission’s vote, Thomas promised to recuse himself from any votes related to VisitDallas, the city’s tourism bureau, for the remainder of his term. He also said he fixed procedures with his staff to ensure the mistake would not happen again. The code of ethics on gifts states that city officials should not accept an item that “is intended to influence or reward” decisions and must file financial disclosure forms for any gift that exceeds $250 within a month of accepting it.

Texas – Texas GOP Speaker Tape: Lawmaker ‘vile,’ Trump ‘killing us’
AP News – Paul Weber and Clarice Silber | Published: 10/15/2019

A secretly recorded audio tape of Texas House Speaker Dennis Bonnen seeking help to oust members of his own Republican Party and profanely disparaging a Democratic House member, along with and other political scheming, has thrown the GOP-controlled Legislature into disarray at a fragile moment when their majority is at stake. The tape has uncorked the biggest political scandal in the state in years. Democrats filed a lawsuit accusing Bonnen of breaking campaign finance laws during the meeting with the head of a conservative group called Empower Texans, which has spent lavishly in pursuit of pulling the Legislature far to the right on issues such as abortion and guns. State investigators responsible for looking into allegations of corruption by public officials have also opened a case.

Virginia – A Virginia Beach Republican Says Democrats Gave His Campaign $44,000. Here’s What’s Going On.
The Virginian-Pilot – Marie Albiges | Published: 10/16/2019

A Republican delegate trying to hold onto his Virginia House seat says his Democratic opponent’s attack mailers have actually benefited his campaign, so much so that he is reporting them as a $44,000 in-kind contribution in official records submitted to the state. Davis said he feels a “legal obligation” to report the donation. The stunt in reality is a creative way to frame what is shaping up to be a close race as Democrats try to flip enough seats to seize control of the General Assembly, said Robin Cooperman, a political science professor at the University of Mary Washington. “It’s political theater, to be sure,” Cooperman said.

Wyoming – Wyoming Utility Regulator Copied, Sent Coal Lobby Letter
WyoFile.com – Andrew Graham | Published: 10/15/2019

The Wyoming Public Service Commission (PSC), in concert with five equivalent bodies from other states, recently asked the Federal Energy Regulatory Commission (FERC) to accelerate an inquiry that could subsidize coal plants in the name of electrical grid reliability. The letter of request appears to have been drafted, in part, by a coal industry lobbying group and passed through by the PSC. Emails obtained by the Energy and Policy Institute through a public records request show three paragraphs of PSC Chairperson Karen Forstrom’s letter match a model letter a representative of the American Coalition for Clean Coal Electricity provided to West Virginia public service commissioners on July 30.

October 17, 2019 • Written by Jim Sedor

Thursday’s LobbyComply News Roundup

Campaign Finance National: “Fourth Defendant in Giuliani Associates’ Case Arrested at New York Airport” by Devlin Barrett (Washington Post) for Stamford Advocate North Carolina: “Solar Group Solicits Campaign Cash for Top Lawmaker, Tied Directly to Legislative Action” by Nick Ochsner […]

October 15, 2019 • Written by Mario Dalessandro

Baltimore City Ethics Board Implements Online Lobbying System

In 2018, the Baltimore City Council enacted the Transparency in Lobbying Act requiring lobbyists to file reports twice a year and affirmatively identify their clients when approaching city government officials. The effective date of the act was contingent on a […]

October 15, 2019 • Written by Jim Sedor

Tuesday’s LobbyComply News Roundup

Campaign Finance New York: “Loophole Allows People with City Business to Shower Thousands on Candidates Despite Contribution Limits” by Anna Sanders for New York Daily News Elections National: “Warren Dares Facebook With Intentionally False Political Ad” by Cecilia Kang and […]

October 14, 2019 • Written by Mario Dalessandro

California Governor Signs Lobbying and Campaign Finance Bills

California Gov. Gavin Newsom

Gov. Gavin Newsom signed a series of bills addressing lobbying and campaign finance transparency. Assembly Bill 902 codifies current regulations into law, including regulations regarding filing deadlines, bookkeeping, and lobbyist registration. Assembly Bill 201 broadens the definition of mass mailing […]

October 14, 2019 • Written by Joanna Kamvouris

Ohio Passes Bill Restoring Tax Exemption for Attorneys, Lobbyists

Ohio Statehouse

The House passed legislation on October 10 to reverse the state budget bill, restoring a business tax exemption for attorneys and lobbyists. Senate Bill 26 was originally introduced to allow educators to claim an income tax deduction for out-of-pocket classroom […]

October 11, 2019 • Written by Jim Sedor

News You Can Use Digest – October 11, 2019

National/Federal Bernie Sanders Says He Will Slow His Campaign Pace After Heart Attack ENM News – Sydney Ember and Jonathan Martin (New York Times) | Published: 10/8/2019 U.S. Sen. Bernie Sanders, in a striking concession for a leading presidential candidate, said […]

National/Federal

Bernie Sanders Says He Will Slow His Campaign Pace After Heart Attack
ENM News – Sydney Ember and Jonathan Martin (New York Times) | Published: 10/8/2019

U.S. Sen. Bernie Sanders, in a striking concession for a leading presidential candidate, said he planned to slow down his pace on the campaign trail after suffering a heart attack, and acknowledged voters would likely consider his health when deciding whether to support him. Sanders’ remarks stood in contrast with comments in recent days from his campaign advisers, who have insisted the senator was neither changing course nor easing his trademark intensity as a result of the heart attack. Given Sanders’ influential role in the Democratic race, not only as a top candidate but also as a driving force in policy debates, his decision to pull back campaigning injects new uncertainty into the contest.

Bernie Sanders, Resting at Home, Announces Plan to Curtail Money in Politics
San Francisco Chronicle – Chelsea Janes (Washington Post) | Published: 10/7/2019

As U.S. Sen. Bernie Sanders recovers at his home from a heart attack, his presidential campaign is pushing ahead without his typical frequent campaign appearances and trying to foster a sense of business as usual. The campaign released a plan to “get corporate money out of politics,” a proposal that would eliminate big-dollar fundraising for all federal elections, enact a constitutional amendment to declare campaign contributions are not speech, and take aim at the Democratic National Convention. The changes would undermine the fundraising approach of not only President Trump and the Republicans, but almost all of Sanders’s fellow Democratic candidates, too.

Bipartisan Senate Report Calls for Sweeping Effort to Prevent Russian Interference in 2020 Election
MSN – Craig Timberg and Tony Romm (Washington Post) | Published: 10/8/2019

A bipartisan panel of U.S. senators called for sweeping action by Congress, the White House, and Silicon Valley to ensure social media sites are not used to interfere in the coming presidential election, delivering a sobering assessment about the weaknesses that Russian operatives exploited in the 2016 campaign. The Senate Intelligence Committee, a Republican-led panel that has been investigating foreign electoral interference for more than two-and-a-half years, said in blunt language that Russians worked to damage Hillary Clinton while bolstering Donald Trump, and made clear that fresh rounds of interference are likely ahead of the 2020 vote.

DC Court Refuses to Overturn Campaign Finance Law
Courthouse News Service – Megan Mineiro | Published: 10/3/2019

A panel of the U.S. Court of Appeals for the District of Columbia Circuit rejected a bipartisan appeal from lawmakers to upend precedent on campaign finance law, upholding an earlier decision. The 2010 SpeechNow v. Federal Election Commission ruling held that certain PACs can collect unlimited contributions from both individuals and corporations with the caveat being that PAC activities are not made “‘in cooperation, consultation, or concert, with, or at the request or suggestion of” a candidate, campaign, or political party. “Since the purpose of this lawsuit is to challenge the D.C. Circuit’s 2010 SpeechNow decision, we look forward to now presenting the case to a court that is authorized to overrule SpeechNow, which the three-judge panel was not empowered to do,” said Ronald Fein, an attorney with Free Speech For People.

Donald Trump’s Longtime Business Connections in Turkey Back in the Spotlight
NBC News – Heidi Przybyla and Anna Schecter | Published: 10/9/2019

President Trump’s decision to pull U.S. troops out of Northern Syria has drawn harsh rebukes from both Republicans and Democrats in Congress and raised alarm bells among America’s allies across the globe. While the president has defended the decision as part of his longtime promise to end U.S. military involvement in the region, even his staunchest supporters at home warned it has essentially given Turkey a green light for a major military offensive against the Kurdish minority there, a target of Turkish President Recep Tayyip Erdogan. The fact that Trump made his decision to remove the troops shortly after a phone call with Erdogan has raised alarm bells from policymakers, as well as government ethics watchdog groups who have long seen Trump’s extensive business interests as a potential area for conflicts-of-interest.

Elaine Chao Favored Kentuckians in Meeting with Officials Seeking Grants
Politico – Tanya Snyder, Tucker Doherty, and Arren Kimbel-Sannit | Published: 10/7/2019

In her first 14 months as Transportation secretary, Elaine Chao met with officials from Kentucky, which her husband Mitch McConnell represents in the Senate, vastly more often than those from any other state. In all, 25 percent of Chao’s scheduled meetings with local officials of any state from January 2017 to March 2018 were with Kentuckians. At least five of Chao’s 18 meetings with local Kentuckians were requested in emails from McConnell staffers, who alerted Chao’s staff members which of the officials were “friends” or “loyal supporters,” according to records. Some of the officials who met with Chao had active grant applications before the Department of Transportation through competitive programs and the emails indicate the meetings sometimes involved the exchange of information about grants and opportunities for the officials to plead their case directly before Chao.

Facebook’s Hands-Off Approach to Political Speech Gets Impeachment Test
ENM News – Cecilia Kang (New York Times) | Published: 10/9/2019

Facebook rejected a request from Joe Biden’s presidential campaign to take it down a video ad by President Trump’s campaign, even though CNN refused to air the ad, saying it made false accusations. In a letter to the Biden campaign, Facebook said the ad did not violate company policies. The social network recently announced that politicians and their campaigns had nearly free rein over content they post there. Even false statements and misleading content in ads, the company has said, are an important part of the political conversation. Facebook’s decision illustrates its executives’ resolve to stay out of the moderation of political speech, despite the use of the social network to spread disinformation in the 2016 presidential campaign.

He Was Trump’s First Fan in Congress. Now He’s a Felon.
ENM News – Vivian Wang (New York Times) | Published: 10/8/2019

The story of former U.S. Rep. Christopher Collins’s rise and fall – businessperson to congressional backbencher, then presidential cheerleader to felon – is a tale of money, politics, family ties and murky ethics. It is also the story of a man who rose to prominence by hitching himself to Donald Trump, and whose star then plummeted as quickly as it rose. Collins resigned his seat and agreed to plead guilty to conspiracy to commit securities fraud and lying to federal investigators. He faces up to 10 years in prison, but prosecutors and defense lawyers have agreed to seek a sentence between 46 months and 57 months.

Legal Team Says It Represents a Second Whistle-Blower Over Trump and Ukraine
MSN – Annie Karni and Nicholas Fandos (New York Times) | Published: 10/4/2019

An intelligence official with “firsthand knowledge” has provided information related to President Trump’s dealings with Ukraine and is now protected from retaliation as a whistle-blower, lawyers representing the official said, confirming a second individual has come forward in the matter. Much is unknown about the official, who has been interviewed by the intelligence community’s inspector general but has not filed a formal complaint. But the individual has hired the same legal team as the first whistle-blower. That, and the claim of “firsthand knowledge,” suggests testimony that might bolster the impeachment case against Trump and further undermine one of his main defense claims: that the accusations against him are based on inaccurate, secondhand information.

Officials’ Texts Reveal Belief That Trump Wanted Probes as Condition of Ukraine Meeting
MSN – Karoun Demirjian, Rachael Bade, Josh Dawsey, and John Hudson (Washington Post) | Published: 10/4/2019

House investigators released numerous text messages illustrating how senior State Department officials coordinated with the Ukrainian president’s top aide and President Trump’s personal lawyer to leverage a potential summit between the heads of state on a promise from the Ukrainians to investigate the 2016 U.S. election and an energy company that employed Joe Biden’s son. The texts, which former special U.S. envoy to Ukraine Kurt Volker provided investigators, reveal officials felt Trump would not agree to meet with Ukrainian President Volodymyr Zelensky unless Zelensky promised to launch the investigations, and did so publicly.

Rick Perry’s Focus on Gas Company Entangles Him in Ukraine Case
ENM News – Kenneth Vogel, Matina Stevis-Gridneff, and Andrew Kramer (New York Times) | Published: 10/7/2019

When Energy Secretary Rick Perry led an American delegation to the inauguration Ukraine President Volodymyr Zelensky, he suggested the names of Americans the new government might want to advise and oversee the country’s state-owned gas company. Perry’s focus during the trip on Ukraine’s energy industry was in keeping with a push he had begun months earlier and was consistent with U.S. policy of promoting anti-corruption efforts in Ukraine and greater energy independence. But his actions during the trip have entangled him in a controversy about a pressure campaign waged by President Trump and his allies directed at the new Zelensky that is at the center of the impeachment inquiry into Trump. That effort sought to pressure Zelensky’s government to investigate Trump’s rivals, including former Vice President Joe Biden.

‘Shadow Lobbying’ in Trump’s Washington
Center for Responsive Politics – Karl Evers-Hillstrom and Dan Auble | Published: 10/3/2019

The Center for Responsive Politics investigated several aspects of unreported lobbying and advocacy in Washington, D.C. The analysis indicated that undisclosed lobbying activities are common. When an individual engages in advocacy to influence public policy but does not register as a lobbyist, it is typically referred to as “shadow lobbying.” It is common, for example, that a top government affairs employee oversees lobbying activity but never actually registers under the Lobbying Disclosure Act by exploiting its various loopholes.

Silence on Big-Money Bundlers Bedevils Watchdog Groups
The Fulcrom; Staff – | Published: 10/9/2019

Some of the most prominent political reform groups have been pressing the presidential candidates for months to be transparent about who is helping them fill their campaign coffers. But they are getting hardly anywhere. The group put out another plea recently, urging all 19 Democrats remaining in the race, plus President Trump and his three Republican challengers, to “implement a system to regularly and meaningfully disclose information” about their so-called bundlers. Since the first request was sent, only one candidate has come close to meeting the coalition’s demands: Pete Buttigieg. He released a list of his two dozen bundlers in April, but it did not include how much money each had collected on his behalf.

Trump’s 2016 Campaign Was Run on a Shoestring. His Reelection Machine Is Huge – and Armed with Consultants.
Philadelphia Inquirer – Michelle Ye Hee Lee and Anu Narayanswamy (Washington Post) | Published: 10/8/2019

Donald Trump’s presidential campaign in 2015 had no pollster, rapid-response team, or fundraiser. A bare-bones staff toiled in a makeshift office at Trump Tower. His opponents vastly outspent him – and lost. But as president, Trump’s campaign machine has dramatically escalated, powered by a historically large fund of donations large and small that has given him a head start over the eventual Democratic nominee. The spending has also created a financial boon for a political-consulting class he once shunned. Beneficiaries of that money include a mix of experienced hands who have long been part of the GOP establishment and a newer crop of strategists who rode Trump’s coattails to a potentially lucrative career in presidential politics.

Two Business Associates of Trump’s Personal Attorney Giuliani Have Been Arrested on Campaign Finance Charges
MSN – Devlin Barrett and John Wagner (Washington Post) | Published: 10/10/2019

Two Florida businesspeople tied to President Trump’s personal lawyer Rudolph Giuliani were arrested on campaign finance violations resulting from a $325,000 donation to a PAC supporting Trump’s reelection. Lev Parnas and Igor Fruman were arrested on a four-count indictment that includes charges of conspiracy, making false statements to the FEC, and falsification of records. Parnas and Fruman were central to Giuliani’s efforts to get government officials in Ukraine to investigate business dealings by former Vice President Joe Biden and his son. The indictment, filled with allegations of political donations being made in secret for the benefit of foreign interests, only adds to the growing legal and political pressure on Trump and Giuliani as they try to fend off Democrats’ impeachment efforts.

US-Based Foreign Agent Bankrolled Ukraine President Zelensky’s DC Lobbying in Hopes of Ukrainian Government Job
Center for Responsive Politics – Anna Massoglia and Yue Stella Yu | Published: 10/7/2019

A little-known U.S.-based attorney, Marcus Cohen, quietly poured six figures into foreign influence operations for Ukraine President Volodymyr Zelensky, hoping to be rewarded with a job in his administration. The new Foreign Agent Registration Act (FARA) records reveal previously unreported meetings with Trump administration officials and details of a six-figure lobbying campaign promoting Zelensky’s interests in the U.S. during the leadup to his election and now-infamous phone call with President Trump. Cohen’s FARA registration follows a request by the Justice Department. He has previously operated under the radar with little paper trail.

Warren Swears Off High-Dollar Fundraisers in Potential General Election
Politico – Alex Thompson and Elena Schneider | Published: 10/9/2019

U.S. Sen. Elizabeth Warren said she will continue to swear off high-dollar campaign fundraisers in the general election if she becomes the Democratic presidential nominee, extending her self-imposed ban on the events beyond the primary and reversing an earlier statement. Warren had said earlier this year that she could do high-dollar fundraisers as the Democratic nominee in 2020 after swearing them off in the primary, to avoid “unilateral disarmament” against President Trump and the GOP. Campaign spokesperson Kristen Orthman clarified that Warren’s pledge would apply only to her presidential campaign, not to raising money for the Democratic Party or other candidates.

White House Declares War on Impeachment Inquiry, Claiming Effort to Undo Trump’s Election
MSN – Nicholas Fandos, Peter Baker, Michael Schmidt, and Maggie Haberman (New York Times) | Published: 10/8/2019

The White House declared it will halt all cooperation with the impeachment probe by House Democrats. In an eight-page letter, the White House said the inquiry into the Ukraine scandal was without merit, complained that President Trump has been denied his due process rights, and argued Democrats were intent on overturning the results of the 2016 election and influencing the 2020 contest. Trump’s decision to resist across the board is itself a potentially precedent setting move that could have far-reaching implications for the inquiry. Democrats believe it bolsters their list of impeachable offenses, adding the stonewalling of Congress to the tally, but it could also deprive them of crucial witnesses and evidence they might need to lodge credible charges against the president.

From the States and Municipalities

Alabama – Montgomery, Ala., Elects Its First African American Mayor After 200 Years
MSN – Meagan Flynn (Washington Pot) | Published: 10/9/2019

Making history, voters in Montgomery, Alabama, elected Steven Reed as the first African American mayor in the 200 years since the city’s founding. His victory reverberated well beyond Montgomery as many celebrated the milestone in a city remembered as both the cradle of the Confederacy and the birthplace of the civil rights movement. Montgomery, where about 60 percent of residents are black, was the first capital of the Confederate States of America, becoming a bastion of racial violence and discrimination in the Jim Crow era but also of protests and resistance in the civil rights era.

Alaska – New Rule Could Put State on Defense When an Alaska Governor Is Accused of an Ethics Violation
Anchorage Daily News – James Brooks | Published: 10/5/2019

Ten years ago, Sarah Palin announced she would resign as governor of Alaska. Explaining her decision, Palin gave a variety of reasons, including she felt financially and personally embattled by a host of ethics complaints. Under state law, she had to pay for her own legal defense. Under a proposed regulation now out for public comment, the state attorney general could direct the Department of Law to defend the governor or lieutenant governor if an ethics complaint is filed against them. The attorney general would have to state in writing that the defense is in the state’s best interest.

California – California Makes ‘Deepfake’ Videos Illegal, but Law May Be Hard to Enforce
The Guardian – Kari Paul | Published: 10/7/2019

California made it illegal to create or distribute “deepfakes” in a move meant to protect voters from misinformation but may be difficult to enforce. Gov. Gavin Newsom signed legislation that makes it illegal to create or distribute videos, images, or audio of politicians doctored to resemble real footage within 60 days of an election. Deepfakes are videos manipulated by artificial intelligence to overlay images of celebrity faces on others’ bodies and are meant to make viewers think they are real. But the new law will face a number of roadblocks, said Jane Kirtley, a professor of media ethics and law, as political speech enjoys more protections in print and online than in broadcast.

California – Judge in Insurance Case Refuses to Change Ruling in Favor of Lara Donor
San Diego Union Tribune – Jeff McDonald | Published: 10/4/2019

For the second time in three months, a judge for the California Department of Insurance refused to change or reconsider his ruling in a workers compensation case, despite direction from Commissioner Ricardo Lara or his special counsel. The case involves a subsidiary of a company whose executives gave thousands of dollars to Lara’s campaign. It is at least the fifth time the department took positions in cases that benefited Applied Underwriters, an Oklahoma insurer whose California subsidiary sold what are called EquityComp policies, which have generated dozens of complaints to state regulators.

Connecticut – Partnership for CT Opens First Meeting to Public, but Transparency Questions Persist
Connecticut Mirror – Kathleen Megan | Published: 10/8/2019

The Partnership for Connecticut has invited the public to the first “organizational meeting” of its governing board, but it is unclear what portion of that meeting, or subsequent meeting, will be open, or what the board will be discussing. The new partnership and its board, a private, nonprofit organization created to carry out a public-private collaboration between the state and Dalio Philanthropies, has been the subject of controversy since lawmakers exempted it from state disclosure and ethics rules even though taxpayer money is being used in the endeavor.

Florida – Rosen Gonzalez Cleared in Ethics Probe After Accusation She Lobbied for Contractors
Miami Herald – Martin Vassolo | Published: 10/5/2019

The most recent ethics complaint lodged against Miami Beach Commission candidate Kristen Rosen Gonzalez was dismissed about four months ago, according to an investigative report. At issue was whether Rosen Gonzalez violated the county’s ethics code, which prohibits former city officials from lobbying the city within two years after leaving their position. The Miami-Dade Commission on Ethics & Public Trust concluded there was insufficient evidence that Rosen Gonzalez, a former city commissioner, had lobbied senior city staff on behalf of three businesses contracted to do flooding-related work for the city.

Kansas – Wichita Council Members Can Take Unlimited Gifts. It’s Not Like That Everywhere
Wichita Eagle – Jonathan Shorman and Chance Swaim | Published: 10/6/2019

A Wichita Eagle review of cities across the region found ethics codes that prohibit specific behavior by elected officials that would leave them open to improper influence. Some states even require local officials to receive ethics training. In Wichita, city employees can be fired for accepting gifts, travel, or meals from anyone doing business with the city. But those rules do not apply to the mayor and city council. Instead, council members are supposed to follow an ethics ordinance that forbids them from doing business with friends and clients, with enforcement left up to the council itself.

Maryland – Del. Tawanna Gaines, Longtime Md. Lawmaker, Charged with Federal Wire Fraud
Washington Post – Ovetta Wiggins and Erin Cox | Published: 10/7/2019

Maryland Del. Tawanna Gaines was charged with federal wire fraud, accused of using $22,000 in campaign funds for personal expenses. She abruptly resigned from the General Assembly. She is accused of defrauding her campaign account, Friends of Tawanna P. Gaines, by soliciting donations that were directed to a PayPal account that was not disclosed in state campaign finance filings. Court documents allege Gaines told donors the money would go to her reelection campaign and to help her maintain her leadership positions. Instead, she is accused of using the money for herself.

Minnesota – Minneapolis Arena Backs Off on Rally Security Costs after Trump Campaign Cries Extortion, Threatens to Sue
Washington Post – Colby Itkowitz | Published: 10/8/2019

After the Trump campaign threatened to sue a Minneapolis arena for passing along a large security bill from the city to cover costs of the president’s political rally there later this week, the venue withdrew the request. Minneapolis officials told the Target Center, where Trump is slated to appear, that it would be responsible for the $530,000 the city says it will need to beef up security for the visit. The Target Center planned to pass that bill along to the Trump campaign and said the campaign would have to pay or it could not use the arena. But after a day of angry tweets from the president, the campaign announced the arena will not be canceling the contract and the campaign will not be paying any additional fees.

Mississippi – 4 Louisiana Men Plead Guilty in Mississippi Bribe Scheme
AP News – Jeff Amy | Published: 10/3/2019

Four Louisiana men have pleaded guilty to conspiring to bribe Mississippi’s former corrections commissioner and trying to bribe a Mississippi sheriff. Michael LeBlanc Sr., Michael LeBlanc Jr., Tawasky Ventroy, and Jacque Jones each entered a guilty plea in federal court to one count of conspiracy. All four men say they paid former Mississippi Corrections Commissioner Christopher Epps a $2,000 bribe in 2014 and promised him future bribes to secure his help in influencing sheriffs, especially those with regional jails overseen by the state, to let them sell phone service and commissary goods to inmates. They also admit to giving Kemper County Sheriff James Moore $2,000 in casino chips in an unsuccessful attempt to bribe him.

Missouri – Mystery Money Tied to McKee Slips into Missouri Attorney General Race
St. Louis Post-Dispatch – Jack Suntrup | Published: 10/3/2019

A St. Louis-based company that contributed to a committee supporting Missouri Attorney General Eric Schmitt’s election will not disclose anything about itself. The EC I Fund donated $10,000 to the MO Opportunity PAC, which was formed in support of Schmitt’s 2020 election bid. The contribution represents a fraction of the more than $670,000 the MO Opportunity PAC has secured this year, but it raises questions about whether the attorney general’s office can, or should, wall off Schmitt from cases that may involve EC I Fund officials, especially if the identities of those officials are unknown.

Nevada – LVCVA Board Bans Gifts as Part of Ethics Overhaul
Las Vegas Review-Journal – Jeff German | Published: 10/8/2019

Las Vegas Convention and Visitors Authority (LVCVA) board members approved new ethics rules that ban members from accepting gifts and tighten controls over travel. The changes have come amid a media investigation that found excessive spending at the tax funded LVCVA and lax board oversight of gifts and traveling expenses. The move also came after prosecutors filed felony theft charges against three former LVCVA executives over the mishandling of $90,000 in Southwest Airlines gift cards bought by the agency between 2012 and 2017. The new policies remove a $400 limit on accepting gifts and no longer encourage board members to travel abroad on LVCVA business unless they have expertise that can assist staff on a trip.

Nevada – State Republican Party Chair Did Little Work for Second Job as Dental Board Lobbyist, Records Show
Nevada Independent – Riley Snider | Published: 10/6/2019

Michael McDonald in September won re-election to a fifth term leading Nevada’s Republican Party. But leading the state GOP is not the only job on McDonald’s plate. For the past year, he has worked as the lobbyist for the Nevada State Board of Dental Examiners, the seventh-largest occupational licensing board in the state, although public records raise questions about his work for the board. Since he was hired in May 2018 (beating out two established lobbying firms led by former lawmakers), records indicate McDonald has spoken at just one board meeting in that 16 months. Public records requests reveal his only written correspondence with the board since he was hired has been monthly invoices, a request for $3,428.57 every month. Lobbyists and lawmakers reported not interacting or seeing him during the legislative session.

New York – Federal Judge Rules Trump Must Turn Over His Tax Returns to Manhattan DA, but Trump Has Appealed
MSN – David Fahrenthold and Ann Marimow (Washington Post) | Published: 10/7/2019

A federal judge dismissed President Trump’s lawsuit seeking to block the Manhattan district attorney from obtaining the president’s tax returns as part of an investigation into hush-money payments during the 2016 campaign. That decision does not mean the tax returns will be handed over immediately. Trump appealed within minutes, and an appeals court put the case on hold until it can hear the president’s challenge. But the ruling by U.S. District Court Judge Victor Marrero was still a broad rejection of Trump’s precedent-shattering argument in this case. The president argued that, as long as he is president, he cannot be investigated by any prosecutor, anywhere, for any reason. Marrero said that was “repugnant” to an American ideal as old as the Constitution: that no person, even a president, is above the law.

North Carolina – NC House Speaker Suing Duke Energy
WRAL – Travis Fain | Published: 10/8/2019

North Carolina House Speaker Tim Moore, who has power over whether bills live or die, is suing a company making one of the biggest lobbying pushes of this legislative session: Duke Energy. Moore is the lead attorney in a negligence case. A farmer was electrocuted when the sprayer boom on his tractor lifted into a power line. A lawsuit Moore filed on the family’s behalf argues that Duke’s line was too low. State Rep. David Lewis, who used to own a tractor dealership, is a paid expert witness in the case. Moore said he does not see a conflict-of-interest. He said Duke has not tried to curry favor with a settlement proposal as the company’s lobbying team works to pass Senate Bill 559, a potential major change in the way North Carolina sets electricity rates.

Oregon – Don’t Hire Your Relatives, Oregon Ethics Watchdog Tells Secretary of State
Portland Oregonian; Staff – | Published: 10/3/2019

Oregon’s ethics watchdog says Secretary of State Bev Clarno cannot hire her son, or any other family member, to perform paid work for her office without running afoul of the state’s conflict-of-interest law. Questions of nepotism arose after Clarno appointed her son, Randy Hilderbrand, to an unpaid volunteer role when she took over the office. Gov. Kate Brown appointed Clarno to replace Dennis Richardson, who died in February. While that may be the guidance for the secretary of state, Oregon legislators follow an entirely different rule. Oregon is one of the few states in the nation that allows lawmakers to hire family members. The Legislature passed a bill a decade ago providing lawmakers an exception to state anti-nepotism laws.

Pennsylvania – How Working Families Party’s Kendra Brooks Built the Biggest Independent Fundraising Machine in Philly Council History
Philadelphia Inquirer – Jonathan Lai and Sean Collins Walsh | Published: 10/9/2019

In her bid to win a Philadelphia City Council seat that has been held by Republicans for decades, Working Families Party candidate Kendra Brooks has drawn endorsements from high-profile elected officials and some unions, anger from the city’s Democratic establishment, and the backing of Philadelphia’s progressive movement. She has also raised a record amount of money for a third-party candidate. Beyond the total amount, Brooks’ fundraising is qualitatively different than that of most candidates.

Pennsylvania – The Amish Are the Target of a Republican Campaign to Drum Up Pa. Votes for Trump
Philadelphia Inquirer – Julie Zauzmer (Washington Post) | Published: 10/9/2019

Donald Trump won Pennsylvania in 2016 by a margin of less than 45,000 votes. The state is also home to 75,000 Amish people, most of whom do not vote. Two Republican political operatives are trying to convince the Amish to come out to the polls, where their votes might be influential. Their project, which started with billboards and newspaper ads urging Amish people to vote for Donald Trump, goes by the name Amish PAC. Amish people tend to align on policy with Republicans, who share their opposition to abortion and same-sex marriage. But making voters out of the Amish, who forgo technology like television and the Internet and who believe in the separation of their religious community from government intrusion, may be a steep goal.

Rhode Island – Grand Jury Probe Shines Spotlight on R.I. Speaker’s Narrow 2016 Campaign Win
Boston Globe – Dan McGowan | Published: 10/9/2019

Three weeks before the 2016 election, with Rhode Island House Speaker Nicholas Mattiello in a close race, his campaign had one last trick up its sleeve: an endorsement from Shawna Lawton, a little-known Republican who lost a primary to Mattiello’s general election opponent Steven Frias a month earlier. The campaign would mail the endorsement to thousands of voters in the district. Mattiello squeaked past Frias by 85 votes, and then he easily retained the speakership. But the details surrounding the endorsement mailer, including who paid for it and how it was arranged, have haunted Mattiello ever since. The state Board of Elections forwarded the case to the attorney general’s office, and now a grand jury has been convened to review whether anyone from Mattiello’s campaign broke the law.

Texas – The 2019 Texas Inauguration Cost a Record $5.3 Million. Where Are the Receipts?
Texas Tribune – Jay Root and Shannon Najmabadi | Published: 10/9/2019

The Texas Tribune filed a lawsuit seeking to discover what happened to the $5.3 million raised for Gov. Greg Abbott’s inauguration through ticket sales and donations from top lobbying firms, corporations and banks, wealthy businesspeople, and trade groups. The only accounting the inaugural committee has given came in its “final report” to the secretary of state’s office. In a one-page list of cash receipts and disbursements, the report gives 11 broad categories of expenditures. The Tribune asked the offices of the governor and lieutenant governor to help get basic information about the expenditures, such as who was paid to raise the money, the names of people or entities receiving large outlays, and which charities got donations. Most of those questions went unanswered.

Washington DC – D.C. Ethics Agency Failed to Probe Prominent Whistleblower Complaint, Audit Says
Washington Post – Fenit Nirappil | Published: 10/3/2019

The District of Columbia’s ethics agency mishandled a whistleblower complaint and has repeatedly failed to respond to city workers seeking guidance regarding ethics, according to a new report by city Auditor Kathy Patterson. The report found the Board of Ethics and Governmental Accountability failed to investigate a 2018 complaint from a whistleblower alleging city officials improperly steered millions of dollars to an affordable-housing developer with political connections, despite repeated attempts by the whistleblower and referrals from others in city government. The mishandling of the case appeared to be part of a broader pattern of dysfunction at the ethics board, Patterson wrote.

West Virginia – Supreme Court Won’t Intervene Over West Virginia Justices
AP News – John Raby | Published: 10/7/2019

The U.S. Supreme Court said it will leave in place a court decision that derailed the impeachment trials of three West Virginia Supreme Court justices accused of corruption. The case the high court declined to review was a decision by five acting justices of West Virginia’s highest court who ruled last year that prosecuting then-state Supreme Court Chief Justice Margaret Workman in the Senate would violate the state constitution’s separation of powers clause. The ruling in Workman’s case was later applied to also halt impeachment proceedings against two other justices who have since left the court.

October 10, 2019 • Written by Jim Sedor

Thursday’s LobbyComply News Roundup

Campaign Finance Texas: “The 2019 Texas Inauguration Cost a Record $5.3 Million. Where Are the Receipts?” by Jay Root and Shannon Najmabadi for Texas Tribune Elections National: “Bernie Sanders Says He Will Slow His Campaign Pace After Heart Attack” by […]

October 9, 2019 • Written by Jim Sedor

Wednesday’s LobbyComply News Roundup

Elections National: “Trump’s 2016 Campaign Was Run on a Shoestring. His Reelection Machine Is Huge – and Armed with Consultants.” by Michelle Ye Hee Lee and Anu Narayanswamy (Washington Post) for Philadelphia Inquirer National: “Bipartisan Senate Report Calls for Sweeping […]

Monday’s LobbyComply News Roundup

News You Can Use Digest – October 25, 2019

Wednesday’s LobbyComply News Roundup

Portland Auditor Updates Proposed Lobbyist Regulation Changes, Opens Public Comment Period

Monday’s LobbyComply News Roundup

News You Can Use Digest – October 18, 2019

Thursday’s LobbyComply News Roundup

Baltimore City Ethics Board Implements Online Lobbying System

Tuesday’s LobbyComply News Roundup

California Governor Signs Lobbying and Campaign Finance Bills

Ohio Passes Bill Restoring Tax Exemption for Attorneys, Lobbyists

News You Can Use Digest – October 11, 2019

Thursday’s LobbyComply News Roundup

Wednesday’s LobbyComply News Roundup

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