Today, the 2016 Rhode Island Lobby Reform Act was celebrated at a ceremonial signing during a State House Library ceremony.

“This legislation provides the public with the means to easily discern who is lobbying for what, as well as, giving the Secretary of the State the means to root out those who are undermining the democratic process through unethical lobbying behavior,” said Sen. Lynch Prata, one of the bill’s sponsors, according to a State House press release.

Senate Bill 2361 and House Bill 7388, both officially signed into law on June 13, repeal the current lobbying laws in Title 22 and Title 42 in the state’s statutes and enact the Rhode Island Lobbying Reform Act. Among the changes in the bills are the simplification of lobbyists’ reporting requirements, an increase in penalties for failing to comply with lobbying requirements, and the allowance for more investigative and administrative authority for enforcing the lobbying laws, including administrative subpoena power.

The effective date for the two bills is January 1, 2017.

Lobbying

“The Lobbying Reform That Enriched Congress” by Isaac Arnsdorf for Politico

“Lockheed’s Top Government Affairs Official Not Registered as Lobbyist” by Austin Wright and Jeremy Herb for Politico

Minnesota: “Lobbying in Minnesota: Spending has nearly doubled since 2002” by Rachel Stassen-Berger for St. Paul Pioneer Press

New York: “JCOPE Shut Down in Lobbying Reform” by Michelle Kraidman for Queens Chronicle

Oregon: “Ethics Watchdog Wants Tighter Lobbyist Registration Rules – Will Kate Brown Say Yes?” by Hillary Borrud for Portland Oregonian

Campaign Finance

Michigan: “Unions Win Injunction Blocking Michigan Fundraising Law” by Jonathan Oosting for Detroit News

Montana: “Call for Special Legislative Session Fails” by Troy Carter for Bozeman Daily Chronicle

Ethics

“F.B.I. Director James Comey Recommends No Charges for Hillary Clinton on Email” by Mark Lander for New York Times

Colorado: “Independent Ethics Commission Shuts Down Public Livestream of Meeting” by Marianne Goodland for Colorado Independent

Connecticut: “Anthem-Cigna Controversy Exposes Gaps in Ethics Rules” by Mark Pazniokas for Connecticut Mirror

Hawaii: “ACLU Lawyer to Be State Ethics Chief” by Rui Kaneya for Honolulu Civil Beat

Idaho: “Major Campaign Finance Reform Initiative Falls Short, Won’t Be on Ballot” by Betsy Russell for Spokane Spokesman-Review

The Oregon Government Ethics Commission has asked Gov. Kate Brown to introduce legislation in 2017 to strengthen lobbying registration requirements. The commission wants to crack down on the registration exception that allows persons spending less than 24 hours or $100 on lobbying per quarter to avoid registering as lobbyists.

Brown has until December 9, 2016 to review proposals from state agencies and file bills for the 2017 session.

National:

Report: It’s harder to know who’s paying for political ads
Star Tribune – Geoff Mulvilhill (Associated Press) | Published: 6/27/2016

A report by New York University’s Brennan Center finds the use of so-called dark money in several states has increased faster than in national elections. Across six states – Alaska, Arizona, California, Colorado, Maine, and Massachusetts – dark money expenditures rose by 38 percent between 2006 and 2014, outstripping the 34 percent rate of increase found in federal elections. And that does not include other categories of nontransparent outside money. The report defines “gray money” as expenditures by entities that do disclose their contributors, but who also list dark money organizations as donors, making it difficult or impossible to locate the original source of the money.

Two Transgender Candidates – Both Named Misty – Just Made History by Winning Primaries
Washington Post – Amber Phillips | Published: 6/29/2016

Primary voters in Utah and Colorado selected transgender women to run for spots in Congress next fall, a first in major-party American political history. Misty Snow will run against U.S. Sen. Mike Lee in Utah this November, while Misty Plowright will challenge U.S. Rep. Doug Lamborn in Colorado. Neither Snow nor Plowright sought to make their gender identities a campaign issue, instead focusing on progressive issues like getting money out of politics. Their wins come as transgender rights have been thrust into the national spotlight after contentious debates in states like North Carolina. “This is even more breathtaking considering the political climate today, the uphill curve to educate people about who transgender people are,” said Bob Witeck, a Washington, D.C.-based LGBT advocate.

Federal:

Bernie Sanders Campaign Showed How to Turn Viral Moments into Money
New York Times – Nick Corasaniti | Published: 6/24/2016

Like most modern campaigns, U.S. Sen. Bernie Sanders and his team relied on widely used digital fundraising tactics, like sending email solicitations and advertising online. They raised more than $61 million and acquired more than three million email addresses directly from digital ads. But the campaign was also able to harness social media networks – which, until recently, most candidates had used primarily for messaging purposes – and turn them into fundraising engines, allowing Sanders’ team to raise money almost exclusively online. The campaign raised roughly $216 million of its nearly $230 million total online.

Donald Trump and R.N.C. Crack Down on Rebelling Delegates
New York Times – Jeremy Peters | Published: 6/26/2016

Donald Trump’s campaign and the Republican National Committee (RNC) are moving quickly and aggressively to head off the fledgling effort to stage a revolt at their July convention in Cleveland, hoping to spare the party an embarrassing spectacle that could deeply wound the presumptive nominee. They are employing hard-nosed tactics, warning delegates that attempting to undermine Trump’s claim to the nomination violates party rules, and threatening to deny speaking slots to Republicans they deem disloyal for not backing him. The RNC and the campaign are also installing loyal party stalwarts in key party positions to help ensure they maintain control of the convention if rogue delegates attempt a disruption. And they are trying to discredit Republicans who are advocating an interpretation of party rules that would allow delegates to vote for anyone they want on the first ballot.

Trump Fundraising Emails Overseas Prompt Complaints Here and Abroad
Washington Post – Sean Sullivan and Max Bearak | Published: 6/29/2016

Donald Trump’s campaign sent a wave of fundraising emails in recent days to lawmakers in the United Kingdom, Iceland, Australia, and elsewhere. The solicitations prompted watchdog groups to file two separate complaints with the FEC alleging the campaign was violating federal law by soliciting funds from foreign nationals. The episode is only the latest fundraising stumble by Trump’s presidential campaign, which has been scrambling to put together a financial operation to take on the well-funded campaign of likely Democratic nominee Hillary Clinton. Whether the snags prove to be growing pains for a campaign that until recently eschewed traditional fundraising or a sign of more serious stumbles to come is a key question facing Trump and the Republican Party as the general election comes into focus.

From the States and Municipalities:

California – At the Corner of Power and Poverty
CALmatters – Laurel Rosenhall | Published: 6/28/2016

The Capitol in Sacramento serves as a magnet for money and power. Nearby shops sell fine cigars and custom suits. A bar serves $16 martinis. But the streets that surround the building also are home to some of the city’s most destitute residents, many suffering from mental illness or drug addiction in addition to extreme poverty. It is not uncommon to see them rifling through trash cans, shouting incoherently, or sleeping barefoot in the shade on the Capitol’s manicured grounds. Bridging these two worlds is Debbie Bartley, who stands across the street selling Homeward, a newspaper produced by homeless people. She chats with the political staffers and lobbyists who give her a few dollars as they pass by. Then she buys food for people who sleep on these streets.

California – Sweeping Public Utilities Commission Changes Announced
Sacramento Bee – Jeremy White | Published: 6/27/2016

A deal between Gov. Jerry Brown and state lawmakers will bring major changes to the California Public Utilities Commission. When commissioners engage in ex-parte conversations around rate-setting rules, they would need to disclose them online under the agreement. The state attorney general could bring enforcement actions against people who violate the rules. The deal also clarifies that people who lobby the PUC would need to register as lobbyists. Through March of this year, more than 50 utilities and other lobbyist employers reported more than $6.3 million in PUC-connected lobbying activities.

Connecticut – Cigna-Anthem Merger: Gov. Malloy’s Insurance Regulator Told Ethics Officials She Was Not Involved in Cigna Issues, even as Her Agency Was
International Business Times – David Sirota | Published: 6/27/2016

Connecticut ethics officials are now investigating whether it is legally permissible for the state’s insurance commissioner to oversee the government’s review of her former company’s proposed merger. In regulators’ probe of conflict-of-interest issues in the Cigna-Anthem transaction, one question they may ask is whether the commissioner in question, former Cigna lobbyist Katharine Wade, deliberately misled them. Emails show that in February, Wade told ethics officials she had no Cigna business before her, even though her agency was then leading the national multistate review of the company’s merger plan, and even though Wade had repeatedly met with the company’s representatives. Wade’s letter to ethics officials did tell them that her staff was reviewing the merger, but did not disclose any information about her own contacts with the companies and their lobbyists.

Delaware – Supreme Court Rejects Challenge to Delaware Election Law
Wilmington News Journal – Jessica Masulli Reyes | Published: 6/28/2016

The U.S. Supreme Court rejected a conservative group’s challenge to Delaware’s campaign finance law. The justices left in place a lower court ruling allowing the 2012 law to be enforced. It requires third-party groups and individuals to disclose their donors to the state elections commissioner if they publish advertisements or other communications, including Internet postings, that refer to a candidate in the 60 days before an election. Previously, only groups that directly advocated for or against a candidate were required to disclose their donors.

Kentucky – Bevin Asserts Control of All Ethics Board Appointments
Lexington Herald-Leader – Jack Brammer | Published: 6/28/2016

Kentucky’s attorney general and state auditor will no longer be able to nominate members of the Executive Branch Ethics Commission under a new executive order from Gov. Matt Bevin. The governor appoints the members of the commission, which investigates allegations of state ethics code violations in the state’s executive branch. But in 2008, then-Gov. Steve Beshear issued an executive order requiring the governor to appoint two members of the commission that had been recommended by the attorney general and the state auditor. Bevin repealed that order, effectively allowing him to control all of the appointments to the board assigned to hold his administration accountable. Bevin spokesperson Jessica Ditto said the order simply returns the appointment process to the system state lawmakers intended.

New York – Bill Would Expand Disclosure for Donors to Lobbying Groups
Albany Times Union – Chris Bragg | Published: 6/29/2016

Under a 2011 law, charitable tax-exempt nonprofits in New York are not required to report their donors, even if the organizations have financially supported lobbying efforts meant to influence state government. Based on comments from state lobbying officials, a bill that Gov. Andrew Cuomo is expected to sign appears to require any charitable organization making a contribution over $2,500 to a substantial New York lobbying campaign to publicly disclose every one of its donors, even those unrelated to the lobbying effort. That would include both donations of staff and other resources for a charity to a lobbying nonprofit, or a monetary contribution.

Ohio – As Activists Prepare to Protest the RNC, the FBI Comes Knocking
Los Angeles Times – Matt Pearce | Published: 6/27/2016

In July, Donald Trump will come to Cleveland to claim the Republican presidential nomination. Given how turbulent some protests outside Trump rallies have been, and that the convention comes just weeks after the worst mass shooting in recent U.S. history, finding the right balance between security and First Amendment rights will be a challenge. Shivers have gone through the Cleveland activist community since law enforcement officials began knocking on their doors as tens of thousands of visitors prepare to come to town. The FBI office in Cleveland said the visits were part of their plans with state and local law enforcement to prepare for the convention by “working collaboratively with members of the community.”

Virginia – Supreme Court Vacates Ex-Virginia Governor’s Graft Conviction
New York Times – Adam Liptak | Published: 6/27/2016

The U.S. Supreme Court unanimously vacated the conviction of former Virginia Gov. Robert McDonnell. He was charged with using his office to help Jonnie Williams Sr., who had provided McDonnell and his wife with gifts worth more than $175,000 when McDonnell was governor. The gifts themselves were legal; the question was whether they were part of a corrupt bargain in which McDonnell reciprocated by using the power of his office to help Williams. The Supreme Court ruled prosecutors defined too broadly the kind of conduct that qualifies as an “official act.” Chief Justice John Roberts said the law cannot punish politicians for giving their constituents access to public officials who are willing to listen, but do not actually exercise government power.

State and Federal Communications produces a weekly summary of national news, offering more than 60 articles per week focused on ethics, lobbying, and campaign finance.

Broward Health, the county’s hospital system, is currently creating an online lobbyist registration system to coincide with its recently discovered registration policy.

The policy, created 12 years ago, was never implemented and came to light only after months of discussions by the board of commissioners on how to create such a policy.

The policy requires lobbyists to identify their clients, disclose the nature of their business activities, and report any business or financial relationships with Broward Health board members. The online system will be modeled after those of Broward County and Broward Public Schools.

Gov. Jerry Brown has announced his support of sweeping reforms to the California Public Utilities Commission (PUC). The overhaul comes as the PUC faces accusations of back-channel dealings and calls for change to create more transparency and independence from utility companies. The reform package will require people lobbying the PUC to register as lobbyists and ban former utility executives from serving on the PUC for two years post-employment.

Photo of the Edmund G. Brown State Office Building by Coolcaesar on Wikimedia Commons.

Lobbying

California: “Sweeping Public Utilities Commission Changes Announced” by Jeremy White for Sacramento Bee

Campaign Finance

“Report: It’s harder to know who’s paying for political ads” by Geoff Mulvihill (Associated Press) for Las Vegas Sun

Kentucky: “Ethics Commission OKs Crowdfunding for Legislative Campaigns” by Ryland Barton for WFPL

Massachusetts: “State’s Chief Campaign Official Seeks Heftier Fines for PACs” by Matt Stout for Boston Herald

Ethics

Connecticut: “Cigna-Anthem Merger: Gov. Malloy’s Insurance Regulator Told Ethics Officials She Was Not Involved in Cigna Issues, even as Her Agency Was” by David Sirota for International Business Times

Florida: “Opa-locka’s Ethics Switcheroo Draws Laughs amid FBI Corruption Probe” by Jay Weaver for Miami Herald

South Carolina: “Gov. Nikki Haley Signs Ethics Reform into Law, Endorses Sen. Larry Martin” by Maya Prabhu for Charleston Post & Courier

Virginia: “Supreme Court Vacates Ex-Virginia Governor’s Graft Conviction” by Adam Liptak for New York Times

Elections

“Donald Trump and R.N.C. Crack Down on Rebelling Delegates” by Jeremy Peters for New York Times

Redistricting

North Carolina: “Supreme Court to Review NC’s Use of Race in Redistricting” by Jonathan Drew (Associated Press) for ABC News

The Cuyahoga County Council recently updated the county’s code of ethics to clarify the ethical rights, responsibilities, and prohibitions applicable to elected officials, employees, board members, contractors, and lobbyists.

New provisions include, but are not limited to, a new lobbyist registration threshold, a new lobbyist reporting requirement, updated gift rules with a presumption of influence standard, and a lower monetary contract threshold for contractor registration and ethics training.

A summary of the changes to the ethics laws and a copy of the ordinance are available for review on the county inspector general’s website. The ordinance became effective May 27.

Federal:

A New Phase for Trump’s Media War
The Hill – Niall Stanage | Published: 6/15/2016

Media coverage of Donald Trump is shifting in a more negative direction as the presumptive Republican presidential nominee opens another front in his war with the Fourth Estate. The Trump campaign revoked press credentials for The Washington Post, initially objecting to a headline regarding remarks he made about President Obama and the mass shooting in Orlando. But coverage from The Post, as well as The New York Times, on Trump’s speech on the massacre included some phrases that are sure to stoke his ire once again. To Trump’s critics, that language is a sign that news media are making an appropriate and long-awaited effort to hold Trump to account. His supporters, however, will no doubt see it as the injection of liberal opinion into news stories.

After Orlando, a Political Divide on Gay Rights Still Stands
New York Times – Jeremy Peters and Lizette Alvarez | Published: 6/15/2016

The deep divide over gay rights remains one of the most contentious in American politics. And the murder of 49 people in an Orlando gay club has, in many cases, only exacerbated the anger from Democrats and supporters of gay causes, who are insisting that no amount of consoling words or reassuring Twitter posts change the fact that Republicans continue to pursue policies that would limit legal protections for gays and lesbians.  Some say identity politics have overtaken the tragedy in Orlando, with its combustible mix of issues that have long divided Americans: guns, gays, God, and immigration.

On Donald Trump, Republicans Keep Distance in Different Ways
New York Times – Jennifer Steinhauer | Published: 6/15/2016

For Republican lawmakers, there is no avoiding reporters in the Capitol, and no escaping controversy brought on by the party’s presumptive presidential nominee. Some, like the #NeverTrump crowd that includes U.S. Sen. Lindsey Graham, have it easy. It is no surprise where they stand on Donald Trump, and they consistently criticize him. But not everyone has it so simple.

Russian Government Hackers Penetrated DNC, Stole Opposition Research on Trump
Washington Post – Ellen Nakashima | Published: 6/14/2016

The Democratic National Committee’s computer systems were compromised by hackers linked to the Russian government, in one of the largest known breaches of an American political organization. A security firm hired by the Democratic Party found two known entities with ties to the Russian government had separately hacked the party’s information-technology infrastructure. It was reported that the party’s entire file of opposition research against Donald Trump had been copied. Presidential campaigns can be intelligence gold mines for foreign adversaries. There is immense interest in how future candidates would treat foreign countries, address trade, build their transition teams, and appoint to cabinet level positions.

From the States and Municipalities:

Alabama – Michael Hubbard, Alabama House Speaker, Is Convicted on 12 Felony Ethics Charges
New York Times – Alan Blinder | Published: 6/10/2016

A jury found Alabama House Speaker Mike Hubbard guilty on 12 of 23 counts of public corruption, agreeing with prosecutors that he used the influence and prestige of his political offices to benefit his companies and clients. The verdict automatically removes Hubbard from the Legislature and the speaker’s office. Prosecutors accused Hubbard of using his position as speaker and as former chairperson of the state Republican Party to try to obtain $2.3 million in work and investments. The charges included that he directed campaign work to his printing company; solicited investments and help to find employment from lobbyists and company executives; and used the power of his office to benefit his clients through legislative action or lobbying the governor’s office.

California – Former State Sen. Ron Calderon’s Guilty Plea in Corruption Case Marks Blow to Political Dynasty
Los Angeles Times – Joel Rubin and Patrick McGreevy | Published: 6/13/2016

Former California Sen. Ronald Calderon, accused of taking bribes from an undercover FBI agent posing as Hollywood filmmakers, agreed to plead guilty to mail fraud. His brother, ex-Assemblyperson Thomas Calderon, pleaded guilty to a money laundering charge in connection with the case. The Calderon brothers were members of a political dynasty going back several decades in the state before they were ensnared in the federal probe. Ronald Calderon had the undercover agent hire his daughter, make a $5,000 payment toward his son’s tuition, and give $25,000 to a nonprofit group the brothers used to pay themselves. In exchange, Calderon agreed to vote for film tax legislation and hire the undercover agent’s purported girlfriend for his staff.

Connecticut – Agency Approves Settlement That Would End Probe of Democrats’ Spending On Malloy Re-Election
Hartford Courant – Jon Lender | Published: 6/15/2016

The Connecticut Democratic Party and State Elections Enforcement Commission (SEEC) are settling a case involving Gov. Dannel Malloy’s 2014 re-election campaign. The party agreed to make a $325,000 payment to end the dispute over whether it illegally spent money from a federal account on mailers to benefit Malloy, who was participating in the state’s public campaign financing program. The federal account can accept political contributions from state contractors, unlike the party’s state fund. The SEEC will drop a pending lawsuit seeking a court order that the Democratic Party comply with an investigatory subpoena.

Hawaii – Honolulu Ethics Director Quits Over Direction Commission Is Headed
Honolulu Civil Beat – Chad Blair | Published: 6/15/2016

Honolulu Ethics Commission Executive Director Chuck Totto has resigned, effective immediately. Totto’s relationship with Mayor Kirk Caldwell’s administration was contentious from the beginning with questions about funding by lobbyists for the mayor’s inaugural luau. The rift was furthered with disagreements on the commission’s budget, as well as the validity of city council votes and Caldwell’s support of the rail project in view of contributions to their political campaigns by rail interests. Totto was placed on a one-month leave after an investigation into management procedures, and was hit with a major restriction upon his return.

Nevada – Nevada Bill Kept Legislators from Being Investigated
Las Vegas Review-Journal – Bethany Barnes | Published: 6/11/2016

The Nevada Ethics Commission is set up to police “public officers,” but legislators hold a special standing that grants them some immunity. The idea is that lawmakers need to be free to make decisions without fear of political retribution. As it stands now, politicians can say the ethics panel investigated a complaint and they were cleared, when in reality the commission was simply powerless to take action. League of Women Voters President Sondra Cosgrove said having no Ethics Commission would be better than having one that is essentially a fraud because it can rarely act. “Nevada is ‘Zombieland;’ it looks like we have lots of good laws and enforcement mechanisms, but as soon you try to actually engage with one, you get your brains eaten,” said Cosgrove.

New York – How Joseph Percoco, Cuomo’s Problem-Solver, Became a Problem
New York Times – Jesse McKinley and Vivian Yee | Published: 6/13/2016

It was all but impossible to imagine New York Gov. Andrew Cuomo without Joseph Percoco, his closest aide and the mainstay of his life in politics. But it took only a few days to end the relationship. Federal investigators subpoenaed records related to Percoco from a state ethics board. Then, the governor learned federal agents had raided Percoco’s home, looking for evidence he and his wife had improperly received thousands of dollars from companies that had done business with the state. Cuomo has repeatedly named Percoco and another former aide, Todd Howe, as the prime targets of the investigation led by Preet Bharara, the U.S. attorney for the Southern District of New York.

South Carolina – General Assembly Passes Ethics Reform for Lawmakers’ Income Disclosure, Independent Investigations
Charleston Post and Courier – Maya Prabhu | Published: 6/15/2016

The South Carolina Legislature approved two ethics reform bills after years of trying. One bill would require lawmakers and other public officials disclose sources of private income, while another would provide independent ethics investigations of ethics complaints against legislators. Under the bills, ethics complaints against legislators would be investigated by a revamped State Ethics Commission, which would determine if there is probable cause to the complaints and if so would send them back to House and Senate ethics committees to determine guilt and any penalty. Legislators and public officials currently must report sources of government income, payments from lobbyists, and some government contractors but not private sources.

Virginia – Two Years Ago, Eric Cantor Lost His House Seat. Was It Just in The Nick of Time?
Washington Post – Roxanne Roberts | Published: 6/15/2016

As vice chairperson of Wall Street investment bank Moelis and Co., Eric Cantor circles the globe advising companies on how to position themselves in the global marketplace. Two years ago, he was the rising star of the Republican Party, the presumptive heir to the speakership of the House, until he was humiliated in a primary election by a political novice. Cantor was the first sitting House majority leader in history to lose his congressional seat. Some called it one of the greatest political upsets of modern times. It was also a cautionary tale. In hindsight, that contest was not just a GOP primary election, Cantor says. It was a referendum on establishment politics, broken promises, and angry voters’ growing distrust of Washington. He was at the epicenter of a populist uprising.

State and Federal Communications produces a weekly summary of national news, offering more than 60 articles per week focused on ethics, lobbying, and campaign finance.

Lobbying

New York: “Complaint Charges Unregistered Lobbying for Daily Fantasy Sports” by Chris Bragg for Albany Times Union

Ethics

“Common Cause Taps Former Connecticut Director as National President” by Staff for Hartford Courant

“Lawmakers Charge Park Service Chief Oversees Culture of Sexual Harassment” by Lisa Rein for Washington Post

California: “Former State Sen. Ron Calderon’s Guilty Plea in Corruption Case Marks Blow to Political Dynasty” by Joel Rubin and Patrick McGreevy for Los Angeles Times

“Opa-locka Finance Advisor Once Targeted in County Ethics Probe” by Michael Sallah and Jay Weaver for Miami Herald

New Mexico: “Judge Rules AG Can Have Ethics Records in Griego Case” by Dan Boyd for Albuquerque Journal

New York: “How Joseph Percoco, Cuomo’s Problem-Solver, Became a Problem” by Jesse McKinley and Vivian Yee for New York Times

Elections

“Trump Revokes Post Press Credentials, Calling the Paper ‘Dishonest’ and ‘Phony’” by Paul Farhi for Washington Post

“Russian Government Hackers Penetrated DNC, Stole Opposition Research on Trump” by Ellen Nakashima for Washington Post

National:

Study: Ordinary people struggle to use many state campaign finance websites
StateScoop – Alex Koma | Published: 5/31/2016

The Campaign Finance Institute released a report that examines how easily ordinary people could use state websites to find out how much money each state’s governor collected in campaign contributions in their most recent elections. Researchers found, for example, that users only managed to answer about 54 percent of questions correctly based on the information available on the websites. Fourteen states earned outright negative ratings, while 10 received middling scores. A total of 12 states got high marks from testers. Michael Malbin, the institute’s executive director, said he hopes the study shines a light on how difficult the sites are to use for “political amateurs, people who don’t use them as part of their occupations.”

Federal:

Clinton Celebrates Victory, Declaring: ‘We’ve reached a milestone’
Washington Post – Anne Gearan, Robert Costa, and John Wagner | Published: 6/8/2016

Hillary Clinton claimed the Democratic presidential nomination after decisive victories in the California, New Jersey, and New Mexico primaries, and appealed to supporters of U.S. Sen. Bernie Sanders to unite with her against Donald Trump. With the Democratic race nearing a close, Clinton savored the biggest night of journey from lawyer, wife, and first lady to senator, secretary of state, and now, the first woman to win a major party’s nomination. The only remaining way for Sanders to win the nomination is to persuade super delegates to effectively overturn the will of the voters.

Exclusive: Trump’s 3,500 lawsuits unprecedented for a presidential nominee
USA Today – Nick Penzenstadler and Susan Page | Published: 6/2/2016

A USA Today analysis of legal filings finds that Donald Trump and his businesses have been involved in at least 3,500 legal actions in federal and state courts during the past three decades. They range from skirmishes with casino patrons to million-dollar real estate suits to personal defamation lawsuits. The sheer volume of lawsuits is unprecedented for a presidential nominee. No candidate of a major party has had anything approaching the number of Trump’s courtroom entanglements. Trump’s history of legal actions provides clues about his style as a leader and manager.

From the States and Municipalities:

California – Builders Pierce California’s Environmental Shield with New Weapon: The ballot
New York Times – Ian Lovett | Published: 6/7/2016

Once heralded as a vital check on corporate influence over government, California’s ballot initiative system, which allows residents to propose laws and approve them by popular vote, has been used to sharply cut property taxes and to enact the country’s first medical marijuana law. But these days, developers are using the process for another purpose: to sidestep state environmental laws and speed major developments. Supporters of the ballot measures say they allow residents to override a broken system in which lawsuits and environmental reviews can delay projects for years. But environmentalists argue the arrangement grants special privileges to developers, even if only a relatively small fraction of residents support a project. And land-use experts say the strategy will become more common unless the state government steps in to curtail it.

California – Countywide Ethics Commission Overwhelmingly Approved
Voice of OC – Tracy Wood | Published: 6/7/2016

Voters approved a ballot measure that will establish an ethics commission in Orange County. The commission will enforce campaign finance law on countywide elected officials. The initiative also gives the ethics panel the authority to enforce the county’s gift ban, lobbyist registry, and parts of the county ethics code.

California – Ex-California Lawmaker Tom Calderon Pleads Guilty to Money Laundering
Sacramento Bee – David Siders and Alexei Koseff | Published: 6/6/2016

Former California Assemblyperson Thomas Calderon pleaded guilty to money laundering as part of a plea agreement in which he acknowledged concealing bribes that his brother, then-state Sen. Ron Calderon, accepted in exchange for supporting the expansion of tax credits for the film industry. Though his conviction carries up to 20 years in prison, prosecutors are requesting that he get no more than one year. The bribes came from an undercover FBI agent who posed as the owner of a movie studio. Thomas Calderon deposited a $30,000 bribe from the undercover agent into a bank account belong to the consulting company he founded, according to the plea agreement. He then wrote a check for $9,000 from that bank account to Ron Calderon’s daughter, the agreement says.

Florida – Bryant Miller Olive Appeals $50 Fine – and Loses
Florida Politics – Jim Rosica | Published: 6/3/2016

The Bryant Miller Olive law firm lost its appeal of a $50 fine for the late filing of one of its lobbyist compensation reports in Florida. Commissioners, though, were split on whether to waive the fine. Some wondered why the firm was fighting a one-day fine; others asked why commission staff bothered to pursue it. Foyt Ralston, a lobbyist with the firm, said it “made every attempt to submit our report.” The company appealed “partially on principle, but this is what we had to do to ask the question of how these things are handled,” Ralston said.

Florida – Hialeah Restaurant Owner Tried to Bribe Commissioner, State Says
Miami Herald – David Ovalle | Published: 6/1/2016

When the owner of Hialeah’s Rancho Okeechobee needed permission to keep the restaurant open late for a special event, he walked into the office of Miami-Dade County Commissioner Jose Diaz. “You have a friend in Rancho Okeechobee,” he wrote in a letter, according to police. And inside the envelope: $700 cash. The envelope stuffed with cash led not to political favors but to the arrest of Elezear Gadea, the restaurant owner, who has been charged with offering a bribe, authorities said. He later gave an undercover detective, posing as a commissioner’s aide, $2,000 in cash to help him, according to police.

Missouri – Four Years Later, an Ex-Politician Is Still Benefiting from His Campaign Fund
St. Louis Post-Dispatch – Kevin McDermott | Published: 6/5/2016

When Missouri House Speaker Steve Tilley resigned in 2012, he kept his $1.1 million campaign fund open. Donors gave the money to further the public agenda he represented. Instead, those funds are furthering Tilley’s lobbying and political consulting work, through a web of private firms and PACs tied to his family members and political allies. Rep. Jay Barnes described a series of newly outlawed maneuvers that are essentially a diagram of what Tilley has done since leaving office: putting campaign funds in long-term investments that do not allow immediate access to the money; moving the money into separate PACs controlled by the former officeholder; and passing the cash to other elected officials while lobbying those officials.

New York – Independent Budgeting a Little-Used Practice for City Watchdog Agencies
Gotham Gazette – Aaron Holmes | Published: 6/3/2016

During the annual budget process, New York City agencies and entities are at the mercy of the mayor and the city council, who ultimately set the budget. But unlike many, the several agencies and officials who regularly monitor or regulate the administration are put in an awkward situation, annually appealing for funding in a dynamic that can hamper their ability to carry out charter-mandated duties and, in some cases, lead to politically-motivated budget cuts.

New York – NY Gov. Cuomo Wants New Limits on Secret Campaign Funds
The Associated Press – David Klepper | Published: 6/8/2016

New York Gov. Andrew Cuomo wants to tighten restrictions on laws governing money given to candidates via so-called independent expenditure committees. Legislation announced by the governor would strengthen rules prohibiting independent groups from working with campaigns to elect specific candidates. It also would require greater disclosure of spending by independent groups. Cuomo released a legal opinion from his top counsel that seeks to clarify ambiguities in current rules prohibiting coordination. The opinion, meant to advise prosecutors or groups like the state Board of Elections, lays out several indications of improper cooperation between a candidate and an independent group. They include sharing major donors or office space, or family members or former staffers of the candidate who lead the independent organization.

Ohio – Lobbyist John Raphael’s Influence Spread Swiftly
Columbus Dispatch – Lucas Sullivan | Published: 6/8/2016

A judge sentenced former Columbus lobbyist John Raphael to 15 months in prison for extorting campaign contributions from red-light-camera vendor Redflex to help secure city contracts for the company. Raphael’s actions have resulted in more than 37 subpoenas, a federal grand jury, hundreds of court depositions, the interrogations of more than 50 Columbus and Franklin County employees, and at least two searches by FBI agents. “It became known that if a company wanted to land a contract, it had to go through John,” said a former city council aide. The city council has enacted new ethics laws this year that call for more accountability and monitoring of lobbyists.

Rhode Island – General Assembly Passes Lobbying Reform Act
Newport Buzz – Christian Winthrop | Published: 6/7/2016

Rhode Island lawmakers gave final approval to legislation that will reform the state’s lobbying law. Senate Bill 2361 and House Bill 7388 clarify the definitions of lobbyist and lobbying; provide a framework for investigations and hearings; strengthen and simplify lobbying reporting guidelines while making it easier for the general public to access these reports; and increase maximum penalties for non-compliance to more than double the current amounts. The bills await Gov. Gina Raimondo’s signature.

Wisconsin – What’s in a Name? Ask the Wisconsin Ethics Commission
Minneapolis Star Tribune – Scott Bauer (Associated Press) | Published: 6/9/2016

Members of the newly created commission to regulate ethics and campaign finance laws for Wisconsin officeholders and lobbyists continued their organizational work with the simplest of tasks: deciding on a name. The Wisconsin Ethics Commission, the name board members agreed upon, was created by the Legislature as one of two groups to replace the Government Accountability Board (GAB) starting on June 30. The agency does not yet have an administrator. Twenty-two people applied for the job, said outgoing GAB Executive Director Kevin Kennedy.

State and Federal Communications produces a weekly summary of national news, offering more than 60 articles per week focused on ethics, lobbying, and campaign finance.

On June 7, the Rhode Island General Assembly passed two bills changing the state’s lobbying laws.

Senate Bill 2361 and House Bill 7388 both repeal the current lobbying laws in Title 22 and Title 42 in the state’s statutes and enact the Rhode Island Lobbying Reform Act. Among the changes in the bills are the simplification of lobbyists’ reporting requirements, an increase in penalties for failing to comply with lobbying requirements, and the allowance for more investigative and administrative authority for enforcing the lobbying laws, including administrative subpoena power.

The bills now head to Gov. Gina Marie Raimondo, who has six days after transmittal (excluding Sunday) to sign or veto the bills or the legislation will become law without her signature. The effective date for the two bills is January 1, 2017.

Photo of the Rhode Island State Capitol by Garrett A. Wollman on Wikimedia Commons.

California’s Fair Political Practices Commission (FPPC) will consider a proposed regulation to further clarify the definition of “lobbyist” at a public hearing set for July 21, 2016.

The proposed regulation would create a rebuttable presumption that all compensation from a person for services that include direct communication with a qualifying official for the purpose of influencing legislative or administrative action received within a calendar month is for the purpose of direct compensation.

The FPPC is accepting written comments on the proposal until July 18, 2016.

Q. When I talk to state officials, I’m always with my registered contract lobbyists. That means I’m exempt from registering, correct?

A. The kind of exemption you are referring to is commonly called an umbrella exception. In most instances, being with a registered lobbyist does not exempt an individual from having to register as a lobbyist.

California and Utah are two states with an umbrella exception, but there are limits to those exceptions. In Utah, an individual is not considered a lobbyist (and thus does not have to register) if he or she:

Interacts with a public official in that official’s capacity as a public official while accompanied by a registered lobbyist who is lobbying in relation to the subject of the interaction or while presenting at a legislative committee meeting at the same time the registered lobbyist is attending another legislative committee meeting; and

Does not make an expenditure for, or on behalf of, a public official in relation to the interaction or during the period of interaction.

California’s umbrella exception is the most well-known, but it was narrowed in March. Now, the umbrella exception will only apply if the individual:

Is an employee of a lobbyist employer;

Meets or speaks with a state official in the company of a registered lobbyist retained by the individual’s lobbyist employer; and

Participates as a subject matter expert regarding a legislative or administrative action at issue.

California’s exception was narrowed to prevent contract lobbyists from being able to utilize the exception and avoid registration and reporting requirements.

As you can see, there are very few umbrella exceptions allowing you to avoid registration. And even when a state has an umbrella exception, there are limits on who can take advantage of them. If you will be attempting to influence a state official, be sure to give us a call prior to your meeting to make sure lobbyist registration will not be required.

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

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