August 24, 2015 •
Input on Los Angeles Lobbying Ordinance Sought
In September, the Los Angeles, California’s Ethics Commission will be soliciting public comment on the Municipal Lobbying Ordinance. Meetings for interested persons will be held at City Hall at 11:30 a.m. on September 9 and 2:00 p.m. on September 17. […]
In September, the Los Angeles, California’s Ethics Commission will be soliciting public comment on the Municipal Lobbying Ordinance. Meetings for interested persons will be held at City Hall at 11:30 a.m. on September 9 and 2:00 p.m. on September 17. The commission is requesting interested persons to sign up for the meetings by email at ethics.policy@lacity.org by September 4.
August 24, 2015 •
Monday News Roundup
Campaign Finance “Federal Election Commission Refuses to Release Computer Security Study” by Dave Levinthal for Center for Public Integrity North Carolina: “Deeper Probe of NC Video Sweepstakes Money Sought” by Craig Jarvis and Anne Blythe for Raleigh News & Observer […]
Campaign Finance
“Federal Election Commission Refuses to Release Computer Security Study” by Dave Levinthal for Center for Public Integrity
North Carolina: “Deeper Probe of NC Video Sweepstakes Money Sought” by Craig Jarvis and Anne Blythe for Raleigh News & Observer
Pennsylvania: “Allentown Council to Consider Banning Pay-to-Play, Members Say” by Lynn Olanoff for Lehighvalleylive.com
Ethics
California: “Faulconer Makes Ethics Picks” by Greg Moran for San Diego Union-Tribune
Illinois: “Ex-Redflex Exec Pleads Guilty to Helping Orchestrate $2M Bribery Scheme” by Jason Meisner and David Kidwell for Chicago Tribune
Oklahoma: “Oklahoma Sen. Rick Brinkley Pleads Guilty to Fraud Charges after Stealing More than $1.8M from BBB” by Nolan Clay and Rick Green for The Oklahoman
Virginia: “Maureen McDonnell to Appeals Court: You can clear me and not my husband” by Matt Zapotosky for Washington Post
Virginia: “Court of Appeals Won’t let McDonnell Stay out of Prison While Pursuing Supreme Court Challenge” by Matt Zapotosky for Washington Post
Elections
“Drug Costs Dislodge Obamacare as GOP Voters’ Top Health Care Concern” by Brett Norman for Politico
“What the ‘Deez Nuts’ Candidacy Says about the State of US Democracy” by Sara Aridi for Christian Science Monitor
August 21, 2015 •
News You Can Use Digest – August 21, 2015
Federal: Facing Money Gap, Hillary Clinton Slowly Warms to ‘Super PAC’ Gifts New York Times – Amy Chozik and Eric Lichtblau | Published: 8/17/2015 Republican presidential candidates have gained a near monopoly on donors of $1 million or more: 56 donors […]
Federal:
Facing Money Gap, Hillary Clinton Slowly Warms to ‘Super PAC’ Gifts
New York Times – Amy Chozik and Eric Lichtblau | Published: 8/17/2015
Republican presidential candidates have gained a near monopoly on donors of $1 million or more: 56 donors gave at least that much for a total of $124.2 million, outgiving Democrats’ biggest donors by about 12 to one. A single GOP contributor, Robert Mercer, a hedge fund magnate who gave $11.3 million, surpassed all of the million-dollar donors supporting Hillary Clinton, combined. Clinton’s allied super PACs, mindful that to resist the tide is to drown, are soliciting giant donations in earnest now, with her blessing. But the disparity, which has worried many Democrats, also has to do with the ambivalence, or outright disdain, that Clinton’s donors say they feel, and that some say they have picked up from her, about the role that super PACs should play.
Hillary Clinton 2016: Campaign wants donors to pay for their own food, parking
Politico – Kenneth Vogel | Published: 8/18/2015
Hillary Clinton’s campaign wants donors to pay for their own food and valet parking at fundraising events. The request filed with the FEC sketches out a novel plan under which the campaign would shift some fundraising costs to donors, without counting against their contribution limits. Campaigns usually either pay such costs directly or, in the case of smaller events in donors’ homes, allow hosts to contribute food, drink, and parking costs. But when hosts provide services and the tally exceeds $1,000, the FEC interprets those costs as in-kind donations because they are considered “necessary expenses incurred to provide an inducement for the making of a contribution.” And those in-kind contributions count against donors’ $2,700 limit for the primary election.
K Street Betting on Hillary
The Hill – Megan Wilson | Published: 8/20/2015
While many lobbyists are holding their pocketbooks in the early stages of the 2016 election cycle, Hillary Clinton received at least $625,703 from 316 registered lobbyists and corporate PACs during the first half of the year. Former Florida Gov. Jeb Bush ranks as a distant second in the influence industry, collecting $444,500 from 140 lobbyists. The donations are a shift from the last couple election cycles, especially on the Democratic side. Barack Obama made campaign promises in 2008 and 2012 not to take money from registered lobbyists, in addition to vowing to ban them from the administration, so the early donations signal K Street hopes to be back in good graces when the next administration takes over the White House.
From the States and Municipalities:
California – $240 Million Education Contract Illustrates State Lobbying Loopholes
KQED – Marisa Lagos | Published: 8/13/2015
Critics say California’s murky disclosure laws make it nearly impossible to know exactly what kinds of work private companies do to influence how thousands of state government contracts are awarded, including whether those same companies seek advantages with behind-the-scenes lobbying. A bill moving through the Legislature would force disclosure around lobbying for state contracts and put California in a group of just 18 states that require disclosure of procurement lobbying.
Florida – Florida Prison Problem Complicates Redistricting
Bradenton Herald – Jeremy Wallace | Published: 8/18/2015
Florida’s prison population is becoming a point of contention in the state Legislature’s attempt to redraw congressional districts. The last Census counted more than 160,000 people in correctional facilities, and they cannot vote. But they can skew how districts are drawn, and ultimately who represents the state in the U.S. House. The federal government has required states to count prisoners as residents of the towns where they are held, not where they are from. Peter Wagner, executive director of the Prison Policy Initiative, said counting prisoners where they are incarcerated means states are giving people living in communities with prisons more voting power and representation than they should have when it is clear inmates are not part of the town and counties they are counted in.
Indiana – Waivers from State Ethics Laws on the Decline
Indianapolis Star – Chelsea Schneider | Published: 8/17/2015
State records show Indiana officials have been issuing fewer waivers that would let state employees take related jobs in the private sector before a yearlong wait. Data show about 10 were granted each year over the past decade, but just one has been allowed so far this year. They could continue to decline because the General Assembly tightened the process by requiring all waivers to go before the Indiana State Ethics Commission. Before the law changed, department heads had wide discretion in determining whether to lift restrictions.
Missouri – Missouri House Is Developing New Intern Rules to Prevent Sexual Harassment
Kansas City Star – Jason Hancock | Published: 8/17/2015
The Missouri House is working on new intern rules aimed at preventing sexual harassment after recent scandals led two legislators to resign. Tighter rules for administering internships are part of an early draft of the policy, which also calls for the establishment of an ombudsman so interns could report problems. The scandals also have brought renewed attention to legislative ethics reform. To many lawmakers, Missouri’s status as the only state with no campaign contribution limits, no caps on lobbyist gifts, and no restrictions on lawmakers becoming lobbyists contributes to an anything-goes atmosphere underlying the sexual harassment of interns.
North Carolina – Deeper Probe of NC Video Sweepstakes Money Sought
Raleigh News & Observer – Craig Jarvis and Anne Blythe | Published: 8/20/2015
Millions of dollars was spent recent elections in a futile attempt to keep the video sweepstakes industry legal in North Carolina, with much of the spending directed by a man later charged in Florida with racketeering. The free-wheeling spending on politicians, lawyers, and lobbyists has raised suspicions, although one probe by the state elections board found no campaign finance violations. Democracy North Carolina, whose complaint prompted the two-year elections board inquiry, now wants the U.S. attorney and the Wake County district attorney to determine whether laws against corruption, bribery, or other offenses were broken, and for authorities to take another look at potential election law violations.
Ohio – Was Council Members’ Football Trip Worth More Than $250?
Columbus Dispatch – Lucas Sullivan | Published: 8/14/2015
The trip that four Columbus City Council members took with a lobbyist to watch the Big Ten Championship football game would have cost about three times the $250 they paid, a travel expert and stadium officials say. Ohio ethics laws state that if the difference between the cost paid for the trip and the actual fair market value exceeds $75, officials must pay the difference or disclose it as a gift on their financial-disclosure forms. The four council members who went –Andrew Ginther, Shannon Hardin, Michelle Mills, and Eileen Paley – all eventually paid $250 to watch Ohio State beat Wisconsin. Paley and Hardin disclosed the trip on their ethics forms, but Ginther and Mills did not.
Oklahoma – Ethics Commission Votes to Suspend Rules after Lawsuit
Albany Times Union; Associated Press – | Published: 8/14/2015
Some state property can be used again for political fundraising and distribution of campaign materials after the Oklahoma Ethics Commission decided to suspend rules against these activities. The action came after the state Democratic Party filed a federal free speech lawsuit against the panel.
Oklahoma – Oklahoma Sen. Rick Brinkley Pleads Guilty to Fraud Charges after Stealing More than $1.8M from BBB
The Oklahoman – Nolan Clay and Rick Green | Published: 8/20/2015
State Sen. Rick Brinkley pleaded guilty to federal fraud charges and resigned from the Oklahoma Legislature. He was accused of embezzling $1.8 million as head of the Better Business Bureau of Tulsa and failing to report about $148,390 in income on his 2013 tax return. A civil lawsuit filed by the Better Business Bureau alleged Brinkley used its money to pay “his mortgage, pool cleaner, personal credit card invoices, and to support a hidden gambling habit.” Brinkley was on track to become the president pro tem of the Senate in two years. His future began to unravel after questions were raised about a $49,693 check he had written from his campaign account to the Better Business Bureau.
Pennsylvania – Lobbyist Spending in Harrisburg Trending Upward
Pittsburgh Post-Gazette – Chris Potter | Published: 8/16/2015
In 2007, when Pennsylvania lobbyists began reporting their activity, they spent $84,175,726. By 2014, the total was $106,283,183. The Marcellus Shale Coalition is the state’s most active lobbying concern. It reports spending just under $14.1 million since 2010. A handful of individual companies reported their own million-dollar expenditures. Six of Pennsylvania’s top 10 lobbying interests work in health care or insurance. “The ideal situation would be if representatives were hearing from citizens, rather than people paid to influence them,” said Mark Singel, a former Pennsylvania lieutenant governor who now works as a lobbyist for the Winter Group.
Wisconsin – Audit of Wisconsin Elections Board Finds No Major Problems with Handling of Investigations
Minneapolis Star Tribune – Scott Bauer (Associated Press) | Published: 8/20/2015
A Legislative Audit Bureau report found no major problems with the way the Wisconsin Government Accountability Board (GAB) handles complaints. “It puts to rest any questions as to whether the six board members exercise independent judgment when they make decisions about complaints, investigations, and penalties,” said GAB Director Kevin Kennedy. As much as Kennedy may wish that to be the case, Republicans who control the Legislature, along with Gov. Scott Walker, have said for months they plan to make significant changes to the board, including possibly doing away with it and starting over. The audit follows a more comprehensive one released in December that looked at the GAB’s entire operation, not just investigations. In that report, the bureau did not recommend that the GAB be overhauled or dismantled.
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.
August 20, 2015 •
Thursday News Roundup
Lobbying California: “Lobbying Ordinance to Be Reviewed by Next Board of Supervisors” by Wes Bowers for Stockton Record Florida: “Donald Trump Gets $23,000 Refund from Miami-Dade County” by Douglas Hanks (Associated Press) for Bradenton Herald New York: “Albany Med VP […]
Lobbying
California: “Lobbying Ordinance to Be Reviewed by Next Board of Supervisors” by Wes Bowers for Stockton Record
Florida: “Donald Trump Gets $23,000 Refund from Miami-Dade County” by Douglas Hanks (Associated Press) for Bradenton Herald
New York: “Albany Med VP Walks Ethics Tightrope as Former Cuomo Official” by Chris Bragg for Albany Times Union
Campaign Finance
“Hillary Clinton 2016: Campaign wants donors to pay for their own food, parking” by Kenneth Vogel for Politico
“Legacy Bush Donors Account for Half of Jeb Bush’s Donations” by Julie Bykowicz (Associated Press) for Seattle Post-Intelligencer
“Meet the Presidential Hopeful Who’d Quit after Signing a Single Law” by Tim Dickinson for Rolling Stone
Ethics
Georgia: “Ex-DeKalb Commissioner’s Husband Gets Prison Time for Stealing County Money” by The Staff for Atlanta Business Chronicle
Iowa: “Ex-DHS Consultant Helped Company Win State Medicaid Job” by Jason Clayworth for Des Moines Register
Redistricting
Florida: “Florida Prison Problem Complicates Redistricting” by Jeremy Wallace for Bradenton Herald
August 19, 2015 •
Wednesday Government Relations News
Lobbying California: “$240 Million Education Contract Illustrates State Lobbying Loopholes” by Marisa Lagos for KQED California: “Local Governments Spend Big to Influence Sacramento” by John Myers for KQED New York: “Former Top Albany Lobbying Firm in Process of Being Acquired […]
Lobbying
California: “$240 Million Education Contract Illustrates State Lobbying Loopholes” by Marisa Lagos for KQED
California: “Local Governments Spend Big to Influence Sacramento” by John Myers for KQED
New York: “Former Top Albany Lobbying Firm in Process of Being Acquired by PR Agency” by Marie French for Albany Business Review
Campaign Finance
“Era of Upheaval Continues as New Legal Challenge Emerges to Federal Campaign Finance” by Jeff Brindle for PolitickerNJ
California: “Good Luck Trying to Figure out California’s Campaign Finance Data” by Joyce Terhaar for Sacramento Bee
Ohio: “Where’s the Line between Donations and Bribes?” by Jessie Balmert for Cincinnati Enquirer
Oklahoma: “Sen. Rick Brinkley to Forfeit Campaign Fund Balance, Ending Ethics Commission Probe” by Barbara Hoberock for Tulsa World
Ethics
Indiana: “BMV Replaces CFO after Patronage Questions” by Tony Cook for Indianapolis Star
August 18, 2015 •
Tuesday Lobbying and Campaign Finance News Update
Lobbying California: “Bill Looks to Put State Lobbying Laws on Par With Local Rules” by Guy Marzorati and Marissa Lagos for KQED Hawaii: “Maui County Plans to Post List of Lobbyists Online” by Nathan Eagle for Honolulu Civil Beat Pennsylvania: […]
Lobbying
California: “Bill Looks to Put State Lobbying Laws on Par With Local Rules” by Guy Marzorati and Marissa Lagos for KQED
Hawaii: “Maui County Plans to Post List of Lobbyists Online” by Nathan Eagle for Honolulu Civil Beat
Pennsylvania: “Lobbyist Spending in Harrisburg Trending Upward” by Chris Potter for Pittsburgh Post-Gazette
Campaign Finance
“Facing Money Gap, Hillary Clinton Slowly Warms to ‘Super PAC’ Gifts” by Amy Chozik and Eric Lichtblau for New York Times
“Campaign Finance Reform PAC Wants to Be a Player in 2016” by Simone Pathe for Roll Call
Colorado: “Rocky Mountain Gun Owners, Colorado Campaign for Life lose Colorado Ethics Watch Lawsuit” by Marianne Goodland for Colorado Independent
Oklahoma: “Ethics Commission Votes to Suspend Rules after Lawsuit” by The Associated Press for Albany Times Union
Ethics
Indiana: “Waivers from State Ethics Laws on the Decline” by Chelsea Schneider for Indianapolis Star
Missouri: “Missouri House Is Developing New Intern Rules to Prevent Sexual Harassment” by Jason Hancock for Kansas City Star
August 17, 2015 •
Monday News Roundup
Lobbying “How Transparent Is Your State’s Lobbying Disclosure?” by Jonah Hahn for The Sunlight Foundation Florida: “Trump, Gimenez Let Off Easy after Breaking Lobbying Law, Critics Say” by Francisco Alvarado for FloridaBulldog.org Rhode Island: “Secretary of State Seeks Overhaul of […]
Lobbying
“How Transparent Is Your State’s Lobbying Disclosure?” by Jonah Hahn for The Sunlight Foundation
Florida: “Trump, Gimenez Let Off Easy after Breaking Lobbying Law, Critics Say” by Francisco Alvarado for FloridaBulldog.org
Rhode Island: “Secretary of State Seeks Overhaul of RI Lobbying Statutes” by Jennifer McDermott for The Associated Press
Campaign Finance
“Federal Election Commission Finally Names Top Lawyer – Sort Of” by Dave Levinthal for Center for Public Integrity
“Donors Descend on Schumer and Others in Debate on Iran” by Jonathan Weisman and Nicholas Confessore for New York Times
Florida: “As Miami Beach PAC Raises Nearly $1.4 Million, Ethics Commission Investigates” by Joey Flechas for Miami Herald
Pennsylvania: “Lehigh County Eyes Pay-to-Play Legislation” by Tom Shortell for Allentown Morning Call
Procurement
Indiana: “BMV Contractor Puts 2 Employees on Administrative Leave” by Tony Cook for Indianapolis Star
South Carolina: “SCDOT Rule Requires 1-Year Wait for Employees Hired by Firms” by Seanna Adcox (Associated Press) for Albany Times Union
Elections
“It’s Not Just Trump: Voter anger fuels outsider candidates” by Philip Rucker for Washington Post
Ethics
Ohio: “Was Council Members’ Football Trip Worth More Than $250?” by Lucas Sullivan for Columbus Dispatch
August 14, 2015 •
Sunlight Foundation Grades States on Lobbying Disclosure
The Sunlight Foundation has released a report card on lobbying disclosure in the states. States’ grades were based on five criteria: If lobbyists have to report the legislation and actions they are lobbying; If lobbying-related expenditures are itemized; If all […]
The Sunlight Foundation has released a report card on lobbying disclosure in the states.
States’ grades were based on five criteria:
- If lobbyists have to report the legislation and actions they are lobbying;
- If lobbying-related expenditures are itemized;
- If all expenditures are reported or only those above a threshold limit;
- If the lobbying reports are easily accessible to the public; and
- If lobbyists have to report their compensation.
The majority of states received either B’s or C’s. Seven states, including Massachusetts, California, and New York, received the grade of A. Four states, including Florida, Oregon, and West Virginia, received a failing grade.
The full report can be viewed here.
August 14, 2015 •
News You Can Use Digest – August 14, 2015
National: Corruption Accusations Paint Troubling Picture of Politics in Philadelphia Region Philadelphia Inquirer – Jonathan Tamari and Chris Palmer | Published: 8/9/2015 The recent indictments of public officials on corruption charges paint a damning picture of politics in Pennsylvania and New […]
National:
Corruption Accusations Paint Troubling Picture of Politics in Philadelphia Region
Philadelphia Inquirer – Jonathan Tamari and Chris Palmer | Published: 8/9/2015
The recent indictments of public officials on corruption charges paint a damning picture of politics in Pennsylvania and New Jersey, one that has dominated front pages with stories of wealthy campaign donors, officials using their posts for their own ends, and the alleged abuse of taxpayer dollars. Pennsylvania Attorney General Kathleen Kane, U.S. Rep. Chaka Fattah, and U.S. Sen. Robert Menendez, along with two people charged in the George Washington Bridge scandal, have all insisted they have done nothing wrong. Still, the stream of charges adds a dark chapter to two states already widely regarded as among the most corrupt in the county.
How Transparent Is Your State’s Lobbying Disclosure?
Sunlight Foundation – Jonah Hahn | Published: 8/12/2015
A review by the Sunlight Foundation of lobbyist disclosure requirements found many states fail to address the legislative flaws that create loopholes, do not provide citizens with easily accessible information, and lack stringent transparency policies. For example, the foundation said that in many states, trying to locate and view a lobbyist’s registration form is either impossible or logistically complex. In 33 states, lobbyists are not mandated to disclose their expenditures in a comprehensive fashion. The foundation ranked the states on how well each one performed on criteria such as reporting thresholds, document availability, and transparency on expenditures.
Federal:
Donors Descend on Schumer and Others in Debate on Iran
New York Times – Jonathan Weisman and Nicholas Confessore | Published: 8/12/2015
Approaching a vote on the Iran nuclear accord, tens of millions of dollars are flowing into ad campaigns and contributors leveraging access to undecided Democrats in the U.S. Senate. Donors said they did not believe any senator would vote based on threats to give or withhold money, and none admitted to giving such ultimatums. But with super PACs poised to dump tens of millions of dollars into Senate races next year, the passions of big contributors – and their ability to change a candidate’s fortunes – are a keenly felt undercurrent to the debate. Some of the biggest donors to super PACs also have strong opinions about the Iran deal and Israel’s security.
Lawrence Lessig Wants to Run for President – in a Most Unconventional Way
Washington Post – Philip Rucker | Published: 8/11/2015
Harvard professor Lawrence Lessig is launching an exploratory committee for the Democratic presidential nomination focused on his signature issue – reforming the nation’s campaign finance laws. “Jefferson’s truth, that all are created equal, has become Orwell’s meme, that some are more equal than others,” said Lessig. He said campaign finance reform is the first step toward addressing every other major issue in American politics. Lessig envisions a president that will serve with the singular goal of campaign finance reform, and step down once it is achieved to let the vice president serve out the remainder of the term. He hopes to crowd-fund $1 million by Labor Day.
New Challenge Filed to Party ‘Soft-Money’ Limits
Bloomberg BNA – Kenneth Doyle | Published: 8/4/2015
James Bopp renewed his attack on federal campaign finance law by filing suit on behalf of the Louisiana Republican Party that challenges restrictions on soft money contributions to political parties. BCRA bans soft money donations to national parties and restricts its use in federal elections by state and local parties. The limits are among the last BCRA provisions left intact following a series of court challenges to other campaign finance regulations. Last November, the Republican National Committee refused to provide an explanation when a similar case was abruptly dropped. But the move came shortly after the GOP won electoral victories that gave them majority control of both the House and Senate, and appeared to reflect a strategic shift away from such court challenges by at least some in the party.
From the States and Municipalities:
Alabama – Federal Court Upholds Alabama PAC-to-PAC Transfer Ban Law
Legal Newsline – Shaun Zinck | Published: 8/6/2015
A federal court upheld the constitutionality of Alabama’s law that bans transferring money from one PAC to another. The court found the state has a sufficiently important issue in preventing corruption or the appearance of corruption and the ban supports this interest, and the law was narrowly drawn so as to protect the state’s interest without being in violation of the First Amendment.
Florida – Trump, Gimenez Let Off Easy after Breaking Lobbying Law, Critics Say
FloridaBulldog.org – Francisco Alvarado | Published: 8/10/2015
Michael Muraswski is the advocate for the Miami-Dade Commission on Ethics and Public Trust, whose role is to prosecute people who break the county’s conflict-of-interest and ethics laws. Critics accuse Muraswski of giving a free pass to rich, powerful, and politically connected individuals who break the rules, including Donald Trump and county Mayor Carlos Gimenez.
Illinois – Illinois’ Corrupt Women
WUIS – Maureen Foertsch McKinney | Published: 8/1/2015
The term “Old Boys Network” is shorthand for the culture that breeds political corruption. A new study from the Paul Simon Public Policy Institute contends the term is gender-inaccurate. “Unsupervised, Ensnared, Relational, and Private: A Topology of Illinois’ Corrupt Women” takes a look at the women of the state who have been convicted for abusing their office. It challenges the notion that “female public officials have a deterrent effect on corruption” and examines the methods and motivations most common among female officials who have been convicted.
Michigan – Recordings: State rep asked aide to hide relationship
MLive.com – Chad Livengood | Published: 8/7/2015
Michigan Rep. Todd Courser distributed a fake e-mail that suggested he had sex with a male prostitute so he could hide his relationship with another state representative. Both lawmakers are Christian conservatives who frequently refer to their faith. Courser, a married father of four, said in an audio recording that the e-mail was intended to create a “complete smear campaign” of false claims so a public revelation about his relationship with state Rep. Cindy Gamrat would seem “mild by comparison.” The Detroit News interviews suggested the representatives used their taxpayer-funded offices to maintain and cover up their relationship.
Missouri – MEC Dismisses Complaint against Redmon
Missouri Times – Travis Zimpfer | Published: 8/11/2015
The Missouri Ethics Commission dismissed a complaint against state Rep. Craig Redmon over allegations he allowed lobbyist gifts for others to be reported as his. The commission said it found no inaccuracies in lobbyist expenditures for the past three years. The agency said it also did not find any expenditures that should have been reported to other public officials. Redmon at first was paraphrased by The Kirksville Daily Express and later told The Associated Press that he sometimes has told people to put under his name expenses that actually were made for others. He has since denied any such action. Redmon says he misspoke and was not paying attention to questions.
Montana – Campaign Finance Rules Released, Upcoming Public Hearings
Helena Independent Record – Alexander Deedy | Published: 8/6/2015
Montana Commissioner of Political Practices Jonathan Motl is putting his proposed campaign finance regulations out for public comment. A public hearing on the proposed rules will be held in Helena on September 2 and 3. Comments may also be submitted to the commissioner’s office. Motl has said the rules would allow corporate groups to spend money in campaigns, but they must say how much they are spending, where the money came from, and what it is being spent on. Motl must approve the final regulations before October 1.
Oklahoma – Democratic Party Sues Oklahoma Ethics Commission
The Oklahoman – Rick Green | Published: 8/11/2015
Oklahoma Democratic Party is suing the state Ethics Commission over new agency rules that prohibit any fundraising or distribution of election materials on state-owned property. Party officials argued the new rules are an improper restraint on free speech. The party had to call off a fund-raising activity planned for Oklahoma City Community College on July 25 after the commission “informally indicated an intention to enforce its rules,” the lawsuit said.
Pennsylvania – Montco DA Charges Attorney General Kane
Philadelphia Inquirer – Craig McCoy, Angela Couloumbis, and Jeremy Roebuck | Published: 8/6/2015
The Montgomery County district attorney filed criminal charges against Pennsylvania Attorney General Kathleen Kane in a convoluted tale of political maneuvering and retribution that threatens the career of an official who was seen until recently as one of her state’s rising stars. Kane has been accused of illegally giving grand jury documents to a newspaper in order to embarrass a critic, and then trying to cover up her actions with false testimony to a different grand jury. Kane has admitted to leaking material, but insisted it was not covered by grand jury secrecy requirements.
Rhode Island – Secretary of State Seeks Overhaul of RI Lobbying Statutes
The Associated Press – Jennifer McDermott | Published: 8/12/2015
Secretary of State Nellie Gorbea said she has questioned whether there are people and organizations lobbying in Rhode Island without registering to do so, either because they are ignoring the law or do not know about it. Because she does not have power to investigate, Gorbea now sends educational letters to people she thinks may be lobbying based on media reports. “Without proper legal investigative processes, you’re left with trying to be fairly broad in terms of outreach,” said Gorbea. She has suggested a new lobbying statute to provide a framework for investigations and hearings, and to grant her subpoena power. Lawmakers did not pass the bill during the 2015 session.
Texas – Texas Watchdog Group Calls another Political Titan to Account
New York Times – Manny Fernandez | Published: 8/6/2015
State Attorney General Ken Paxton, former Gov. Rick Perry, and ex-U.S. House Majority Leader Tom DeLay are all Texas officials who have been indicted while in office over the past decade. They also have one other thing in common: the complaints leading to their indictments were initiated by Texans for Public Justice, the low-budget, nonprofit watchdog group that Craig McDonald runs out of a basement office in Austin. Critics dispute McDonald’s claim that Texans for Public Justice is nonpartisan, saying it has used the courts to serve as a political attack machine against Republicans.
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.
August 13, 2015 •
Ask the Experts – Conference Attendance and Gift Limits
Q. I will be attending several upcoming conferences where legislators and other public officials will be present. I’m not a registered lobbyist at the state level—do I still need to worry about gift limits? A. Even if you are not […]
Q. I will be attending several upcoming conferences where legislators and other public officials will be present. I’m not a registered lobbyist at the state level—do I still need to worry about gift limits?
A. Even if you are not a registered lobbyist, you will still need to be mindful of the various gift limits applicable to legislators and public officials you engage at these conferences. Depending on your company’s status as a lobbyist employer, you may be subject to more stringent limits in certain jurisdictions. It’s important to remember there is no one-size-fits-all approach to determining permissibility. Each state addresses gift limits differently, and what will be permissible in one jurisdiction will not be permissible in another. Further, you should not depend on the legislator or public official to know applicable gift limits. Because gift limits may vary depending on your company’s status as a lobbyist employer, officials may not be aware of which limit to apply when accepting gifts and benefits.
Numerous states have gift exceptions specifically applicable to expenditures at national conferences to which all members of the legislature are invited (such as NCSL) as long as the expenditures are part of the conference agenda. Examples of this include lunch/dinner events, or a sponsored state night. However, for private dinners and events and other expenditures not included on the official agenda, you will still be subject to a state’s regular gift limits and restrictions.
In some cases, your expenditures on behalf of these individuals will need to be disclosed on a lobbyist employer report. You will need to coordinate closely with your company’s government affairs or legal department to not only determine permissibility, but to determine whether the expense is reportable. For jurisdictions requiring disclosure, you may need to report the date of the expense, the name of the individual(s) receiving the benefit, a brief description, and the value of the expense. Make sure to save itemized receipts. Some jurisdictions require you to report the name and address of the vendor (such as a restaurant or catering company) and may additionally require you to determine the reportable amount by specific benefit received. Some states do not permit meal expenditures to be calculated on a prorated basis (i.e., a dinner valued at $375, divided by the number of attendees) but instead require disclosure of a specific amount attributed to a particular legislative official or employee (i.e., $15.75 for the salmon entrée).
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You can directly submit questions for this feature, and we will select those most appropriate and answer them here. Send your questions to: experts@stateandfed.com.
(We are always available to answer questions from clients that are specific to your needs, and we encourage you to continue to call or e-mail us with questions about your particular company or organization. As always, we will confidentially and directly provide answers or information you need.) Our replies to your questions are not legal advice. Instead, these replies represent our analysis of laws, rules, and regulations.
August 12, 2015 •
Wednesday Government Relations News
Lobbying Missouri: “MEC Dismisses Complaint against Redmon” by Travis Zimpfer for Missouri Times Ohio: “Mills Stepping Off City Council, Ballot Amid Ethics Questions” by Lucas Sullivan for Columbus Dispatch Campaign Finance “Lawrence Lessig Wants to Run for President – in […]
Lobbying
Missouri: “MEC Dismisses Complaint against Redmon” by Travis Zimpfer for Missouri Times
Ohio: “Mills Stepping Off City Council, Ballot Amid Ethics Questions” by Lucas Sullivan for Columbus Dispatch
Campaign Finance
“Lawrence Lessig Wants to Run for President – in a Most Unconventional Way” by Philip Rucker for Washington Post
California: “Watchdog Issues Campaign Fines in Los Angeles Mayor’s Race” by Juliet Williams (Associated Press) for Miami Herald
Ethics
Connecticut: “Ganim Pushes Anti-Corruption Reforms” by Brian Lockhart for Connecticut Post
New York: “Halfmoon Ex-Supervisor Melinda Wormuth Admits to Corruption Charges” by Brendan Lyons for Albany Times Union
Oklahoma: “Oklahoma Lawmaker Resigns amid Embezzlement Investigation” by Tim Talley (Associated Press) for Albany Times Union
Virginia: “Federal Appeals Court Turns Down Former Va. Governor McDonnell, Again” by Matt Zapotosky for Washington Post
Elections
“Rick Perry’s Campaign Details a Path Forward despite Money Woes” by Philip Rucker for Washington Post
August 11, 2015 •
Tuesday Lobbying and Campaign Finance News Update
Lobbying California: “Anaheim Councilwoman Criticized for Trip with Disneyland Lobbyist” by Adam Elmahrek for Voice of OC Campaign Finance “New Challenge Filed to Party ‘Soft-Money’ Limits” by Kenneth Doyle for Bloomberg BNA Alabama: “Federal Court Upholds Alabama PAC-to-PAC Transfer Ban […]
Lobbying
California: “Anaheim Councilwoman Criticized for Trip with Disneyland Lobbyist” by Adam Elmahrek for Voice of OC
Campaign Finance
“New Challenge Filed to Party ‘Soft-Money’ Limits” by Kenneth Doyle for Bloomberg BNA
Alabama: “Federal Court Upholds Alabama PAC-to-PAC Transfer Ban Law” by Shaun Zinck for Legal Newsline
Montana: “Campaign Finance Rules Released, Upcoming Public Hearings” by Alexander Deedy for Helena Independent Record
Ethics
Pennsylvania: “Corruption Accusations Paint Troubling Picture of Politics in Philadelphia Region” by Jonathan Tamari and Chris Palmer for Philadelphia Inquirer
Michigan: “Recordings: State rep asked aide to hide relationship” by Chad Livengood for MLive.com
South Carolina: “S.C. Statehouse Corruption Probe Continues, but Where Will it Lead?” by Schuyler Kropf for Charleston Post and Courier
Texas: “Texas Watchdog Group Calls another Political Titan to Account” by Manny Fernandez for New York Times
Elections
Arkansas: “Arkansas Attorney General Approves Wording of Term Limits Amendment” by The Associated Press for Arkansas Business
Procurement
Mississippi: “Gov. Bryant Orders Contracting Reform” by Geoff Pender for Jackson Clarion-Ledger
August 10, 2015 •
Monday News Roundup
Lobbying “Bennet, Franken Introduce Lobbying Reform Bill – CWA Goes after Planned Parenthood Consultant – New Dems Break Fundraising Record” by Tarini Parti for Politico Ohio: “Redflex-Funded Groups Helped Columbus Lobby for Cameras” by Lucas Sullivan for Columbus Dispatch Campaign […]
Lobbying
“Bennet, Franken Introduce Lobbying Reform Bill – CWA Goes after Planned Parenthood Consultant – New Dems Break Fundraising Record” by Tarini Parti for Politico
Ohio: “Redflex-Funded Groups Helped Columbus Lobby for Cameras” by Lucas Sullivan for Columbus Dispatch
Campaign Finance
“IRS Mismanaged Tea Party Groups, Senate Report Finds” by Bernie Becker for The Hill
Minnesota: “Mark Dayton Drew Big Inaugural Checks after Election” by Brian Bakst (Associated Press) for St. Paul Pioneer Press
Ethics
Georgia: “Investigator: Corruption in DeKalb County ‘stunning’” by Dave Williams for Atlanta Business Chronicle
Indiana: “Pence Cancels BMV Contract, Asks for Ethics Investigation” by Tony Cook for Indianapolis Star
Oregon: “Cylvia Hayes Must Turn Over Emails to Judge for Review, Release” by Nick Budnick and Laura Gunderson for Portland Oregonian
Pennsylvania: “Montco DA Charges Attorney General Kane” by Craig McCoy, Angela Couloumbis, and Jeremy Roebuck for Philadelphia Inquirer
West Virginia: “Law Restricts WV Elected Officials’ Self-Promotion Using Taxpayer Money” by Phil Kabler for Charleston Gazette
August 7, 2015 •
News You Can Use Digest – August 7, 2015
National: Drunk on Power: Booze distributors ply statehouses to keep profits flowing Center for Public Integrity – Liz Essley Whyte | Published: 8/6/2015 Alcohol distribution is a $135 billion industry in the U.S. To protect the regulations that guarantee their business, […]
National:
Drunk on Power: Booze distributors ply statehouses to keep profits flowing
Center for Public Integrity – Liz Essley Whyte | Published: 8/6/2015
Alcohol distribution is a $135 billion industry in the U.S. To protect the regulations that guarantee their business, wholesalers bankroll scores of lobbyists and give millions of dollars in political contributions. Because alcohol is largely regulated at the state and local level, wholesalers aim most of their political firepower at statehouses. At least 22 states had bills in 2015 seeking to allow alcohol makers to circumvent distributors and sell their products directly to customers. They faced firm opposition because alcohol wholesaler alliances had at least 315 registered lobbyists spread across 49 states and the District of Columbia. Distributors gave about $14.6 million to state candidates, parties, and ballot issue groups in 2014.
Federal:
Limits Unclear on New Political Party ‘Slush Funds’
Center for Responsive Politics – Carrie Levine | Published: 8/3/2015
A new law allows political parties to accept more than $800,000 per person per year, compared to $97,200 under the old limits. The money technically must be used only for specific purposes, such as legal expenses and improvements to party headquarters. But the limits are murkier than they seem, with some lawyers saying the money could legally pay for some election-related costs such as opposition research and data mining. And the FEC is at an impasse over whether and how to issue rules governing the new party accounts. As a result, decisions about spending the money are pretty much up to the parties and their lawyers.
Rand Paul Super PAC Head Indicted over Alleged 2012 Campaign Finance Violations
Washington Post – Sean Sullivan and Matea Gold | Published: 8/5/2015
A supporter and onetime close adviser to U.S. Sen. Rand Paul was charged with hiding secret payments to secure the endorsement of an Iowa lawmaker during the 2012 presidential campaign of his father, former U.S. Rep. Ron Paul. Jesse Benton, who had been tapped to run America’s Liberty, a super PAC that supports Rand Paul’s presidential bid, is accused of paying more than $70,000 to former Iowa Sen. Kent Sorenson to win his support ahead of the state’s caucuses in 2012. Also charged are John Tate and Dimitrios Kesari, who worked with Benton on the 2012 campaign. The three are accused of submitting false expense reports to the FEC. Benton is also accused of lying to the FBI.
Small Pool of Rich Donors Dominates Election Giving
New York Times – Nicholas Confessore, Sarah Cohen, and Karen Yourish | Published: 8/1/2015
An analysis of FEC reports and IRS records shows the fundraising arms race has made most of the presidential hopefuls dependent on a small pool of the richest Americans. Fewer than four hundred families are responsible for almost half the money raised in the 2016 campaign. The intensifying reliance on big money in politics mirrors the concentration of American wealth more broadly. In an era when a tiny fraction of the country’s population has accumulated a huge proportion of its wealth, the rich have also been empowered by the U.S. Supreme Court’s Citizens United decision and other regulatory changes to spend more on elections.
From the States and Municipalities:
Alabama – Tom Albritton, Alabama’s New Ethics Executive Director, Wants to Be Fair, Consistent
AL.com – Mike Cason | Published: 7/31/2015
Tom Albritton, the new executive director of the Alabama Ethics Commission, said consistency is the key to applying a broadly written ethics law in a way that both guards the public’s trust and encourages good people to run for office. He said parts of the ethics law are nonspecific to the extent that it requires careful interpretation for every circumstance and event. “I think having broad language is a challenge to enforce consistently, and you can’t have a rigid set of rules that don’t work in the real world,” said Albritton.
California – Campaign Money Has MTA Board Members Missing Votes
Los Angeles Times – David Zahniser and Katie Shepherd | Published: 8/3/2015
Los Angeles Mayor Eric Garcetti recused himself from dozens of Metropolitan Transportation Authority board votes last year as he sought to comply with one of California’s most restrictive rules on campaign contributions. Politicians on the board are prohibited from participating in decisions on contracts if they have received political donations of more than $10 from the companies seeking the work. One of his appointees to the board, city Councilperson Mike Bonin, withdrew from 34 contract decisions. County Supervisor Michael Antonovich stepped aside on 19 votes. For ethics experts, the practice of missing votes poses a question: does it mean the system is working, because politicians are staying away from the decisions that affect their campaign donors? Or does it show that it is broken, because board members repeatedly miss major financial decisions?
California – Public Officials Named in New Findings from FBI Probe of ‘Shrimp Boy’ Chow
San Francisco Examiner – Jonah Owen Lamb | Published: 8/4/2015
Evidence from the prosecution of Raymond “Shrimp Boy” Chow potentially implicates a wide array of public officials in alleged bribery schemes, “pay-to-play” plots, money laundering, and bid-rigging. The federal investigation culminated in a sweeping indictment with 29 defendants. Among them was former California Sen. Leland Yee, who pleaded guilty to racketeering. Chow was charged with running a Chinese American community organization as a racketeering enterprise. A motion to dismiss the indictment included snippets of FBI reports and wiretap evidence that suggest San Francisco Mayor Ed Lee and others participated in public corruption schemes but were spared prosecution “due to their political affiliations.’
Maine – Anti-Gay Marriage Group Suffers another Loss in Bid to Conceal Donors to Maine Campaign
Portland Press Herald – Steve Mistler | Published: 8/4/2015
Maine’s highest court rejected a national group’s latest bid to shield the identities of donors who contributed to its effort to overturn the state law allowing same-sex marriage. The state ethics commission fined the National Organization for Marriage (NOM) $50,250 last year for violating campaign finance laws and ordered it to file a report revealing the names of those who supported the referendum. NOM paid the fine but asked the Supreme Judicial Court to allow it to hold off on filing the report until the court considers its appeal of the commission’s decision. The justices denied that request, saying it is unlikely the organization will be successful in its challenge of the ethics panel’s ruling.
Massachusetts – 2 Businesses Fight State Ban on Campaign Contributions
MassLive.com – Shira Schoenberg | Published: 8/4/2015
An advocacy group and two business owners asked a judge to grant a preliminary injunction temporarily halting Massachusetts’ restrictions on corporate political giving. Under the state’s current campaign finance law, businesses are not allowed to contribute directly to candidates. Unions can contribute up to $15,000 to a candidate and individuals can contribute up to $1,000. Businesses cannot establish and fund PACs that donate to candidates, even though unions can. “Government can’t pick winners and losers in the political marketplace,” Jim Manley, senior attorney at the Goldwater Institute, told reporters before the hearing.
New York – JCOPE Denies Request to Shield Abortion-Issue Donors
Capital New York – Jimmy Vielkind | Published: 8/4/2015
The Joint Commission on Public Ethics (JCOPE) rejected applications from Family Planning Advocates of New York and the state Civil Liberties Union for exemptions that would allow the groups to keep their most generous donors secret. The 2011 law that created JCOPE allows it to grant exemptions if donors to a specific group – advocacy organizations categorized as 501(c)4 groups – are likely to face “harm, threats, harassment, or reprisals” if their giving becomes known to the public. Commissioners who opposed the exemptions expressed concern that the standard of evidence in the applications, which detailed episodes of perceived threats, was insufficient.
Pennsylvania – City Adopts New Reporting Requirements for Campaign Financing
Philadelphia Daily News – Wendy Ruderman | Published: 7/31/2015
Mayor Michael Nutter signed legislation that requires non-candidate groups that fundraise for the purpose of influencing elections to submit campaign finance reports every two weeks, beginning six weeks before an election. Non-candidate groups include nonprofit organizations, corporations, partnerships, and PACs. Disclosures regarding electioneering communications, such TV ads purchased by non-candidate parties, are also required within 50 days of an election. The bill followed a Democratic mayoral primary in which a significant amount of so-called dark money was spent by independent groups to influence the race.
Pennsylvania – City’s Campaign Contribution Limits at Heart of Fattah Case
Philadelphia Inquirer – Chris Brennan | Published: 7/30/2015
U.S. Rep. Chaka Fattah had a plan as he prepared for Philadelphia’s 2007 mayoral race: raise six-figure contributions from wealthy donors and, if challenged, use the courts to overturn the city’s donation limits. The conventional wisdom in political and legal circles at the time was that those caps would not survive a legal challenge. A Philadelphia judge, as expected, overturned the limits in December 2006. Commonwealth Court put them back in a ruling that landed just six weeks before the mayoral primary. The ruling set Fattah on a course that ultimately led to his recent indictment on corruption charges as he tried to circumvent the local law.
Pennsylvania – Reading Councilman Pleads Guilty in Corruption Case
Philadelphia Inquirer – Jeremy Roebuck | Published: 8/5/2015
Reading City Council President Francisco Acosta pleaded guilty to accepting a bribe of $1,800 in return for his effort to repeal the city’s campaign finance law. Court documents do not identify the public official who offered the bribe, but said the official had the power to sign city council legislation into law. The only person with that power is Mayor Vaughn Spencer, whose home was raided in July by the FBI. “Public Official No. 1,” as court documents described the person offering the bribe, had taken campaign donations that violated city law. The official believed “his best chance of winning re-election would require keeping these contributions and raising additional funds which would be prohibited by the code of ethics,” according to the documents.
Texas – Appellate Panel Says Texas ID Law Broke U.S. Voting Rights Act
New York Times – Erik Eckholm | Published: 8/5/2015
A federal appeals court struck down Texas’s voter-identification law, ruling it violates the Voting Rights Act. Texas was allowed to use the law during the 2014 elections, thereby requiring an estimated 13.6 million registered voters to have a photo ID to cast a ballot. The ruling was a victory, although not a sweeping one, for Democrats and minority rights groups. Last year, a federal judge called the law the equivalent of a poll tax, but the three-judge panel of the Fifth U.S. Circuit Court of Appeals disagreed. Instead, it sent the law back to the lower court to consider how to fix the discriminatory effects. The state can appeal the unanimous decision to the full appeals court, or ask for a U.S. Supreme Court review.
Texas – Paxton Surrenders in Securities Fraud Indictment
Texas Tribune – Patrick Svitek | Published: 8/3/2015
Facing three felony counts of securities law violations, Texas Attorney General Ken Paxton was booked on felony securities fraud charges. The grand jury indictments show that two first-degree fraud charges were based on Paxton’s efforts in July 2011, when he was a member of the state House, to sell stock on behalf of Servergy. According to the indictments, Paxton failed to tell stock buyers that he had been compensated with 100,000 shares of Servergy stock. Paxton also said he was an investor in Servergy when he was not, the charges indicated. A third count accused Paxton of acting as an investment adviser representative without registering with the State Securities Board. Paxton is not required to leave office while he fights the charges.
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