Q. To streamline LDA tracking and reporting, our company includes 100 percent of our in-house lobbyists’ compensation as lobbying on our quarterly report.  Is this a reasonable approach?

A. The LDA does not contain any special tracking requirements for reporting expenditures.  Registrants employing in-house lobbyists are required to provide a “good faith estimate of the total expenses” of their lobbying activities.  With the “good faith” standard as the back drop, an organization should determine whether including 100 percent of their lobbyists’ compensation meets that standard.  Aside from the tax implications of including 100percent of compensation, typically, there is some time that is spent during the course of a quarter that is not defined as lobbying and varies from month to month depending on what issues are being addressed.  Therefore, providing a good faith estimate, in most cases, will require a registrant to implement some sort of tracking process to meet the standard.  In the event of an audit, the ability to demonstrate reasonable efforts to track and capture lobbying activity, and only lobbying activity, is an additional benefit.

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.

Lobbying

“Which federal agencies do lobbyists target most?” by Elizabeth Shell in PBS Newshour.

“Unemployment Extension Cause Has Invisible Lobby | K Street Files” by Kate Ackley in Roll Call.

“Former Rep. Dan Lungren returns to lobbying” by Megan R. Wilson in The Hill.

Canada: “Number of federal lobbyists up 24 per cent” by Jason Fekete in The Star Phoenix.

Florida: “Lobbyists, lawyers jostle for pot business” by Dara Kam in The News Herald.

Kentucky: “Lobbyist hosts RPK fundraiser with top GOP senators” by Tom Loftus in the Courier-Journal.

Oklahoma: “Wind energy felt at the state Capitol” by Kurtis Killman in the Tulsa World.

Pennsylvania: “Improvements seen in Phila. lobbying Web site” by Alisha Green (Sunlight Foundation) in The Philadelphia Inquirer.

Campaign Finance

“What if your cell phone buzzed every time someone gave your congressman a ton of money?” by Emily Badger in The Washington Post.

“What America Can Learn From Norway’s Success in Regulating Campaign Finance” by Emmett Rensin in PolicyMic.

Ethics

Georgia: “Georgia settles with 3 former ethics commission employees for more than $1.8 million” by Christina A. Cassidy (Associated Press) in The Republic.

Ohio: “Lawmaker might face charges over gifts” by Randy Ludlow in The Columbus Dispatch.

Rhode Island: “Issues to watch at end of General Assembly session” by Erika Niedowski (Associated Press) in the San Francisco Chronicle.

Rhode Island: “R.I. Senate OKs bill for Ethics Commission jurisdiction over state lawmakers” by Mike McKinney in the Providence Journal.

West Virginia: “Ethics Commission to hire interim director” by Phil Kabler in The Charleston Gazette.

Congress

“What Happens in the Senate When No One’s Looking? A Lot” by Humberto Sanchez in Roll Call.

State Legislatures

California: “California Legislature passes $156.4-billion 2014-15 budget” by Chris Megerian and Melanie Mason in the Los Angeles Times.

Minnesota: “Minnesota legislators swap Capitol careers for lucrative county paychecks” by Patrick Condon in the Star Tribune.

New York: “Albany lawmakers leaving unfinished business” by Michael Randall in Times Herald-Record.

Government Tech and Social Media

“Pols have a #fakefollower problem” by Darren Samuelsohn in Politico.

 

National:

What Corrupt States Spend Their Money On

Government Technology – Liz Farmer and Kevin Tidmarch (Governing Magazine) | Published: 6/6/2014

According to research published in Public Administration Review, states with higher levels of public corruption spend more money on highways and construction. The study found those projects and police programs provide the most opportunities for lawmakers to enrich themselves, and are positively correlated with state levels of corruption. Meanwhile, highly corrupt states also spend relatively less on health, education, and welfare, categories that were less susceptible to graft and bribery, found the report.

Federal:

Four Years Later, FEC May Finally Update Its Books with Citizens United Ruling

National Journal – Shane Goldmacher | Published: 6/8/2014

Sources said a bipartisan coalition of FEC commissioners is finally moving to update its regulations in the wake of the Supreme Court’s Citizens United ruling after years of stalemate. The proposed rules under consideration by commissioners are narrow in scope, mostly seeking to strip unconstitutional provisions from the books; the revisions would not include the stricter disclosure requirements that some Democrats have sought, said people involved in the matter. But the very fact the FEC is undertaking the effort at all is a significant development for an agency that has become synonymous with Washington gridlock and dysfunction.

From the States and Municipalities:

California – Calif. Senate Adopts New Ethics Standards, Rejects Others

Los Angeles Times – Patrick McGreevy | Published: 6/9/2014

The California Senate passed new rules that will create an ethics ombudsman, update the chamber’s code of conduct, and ban senators from collecting campaign checks during the last four weeks of the legislative session. But the Senate also shot down a bill that sought a broader campaign fundraising ban, and passed a watered-down ethics bill striking out an attempt to limit the value of travel that officials may take at the expense of interest groups who lobby them.

Colorado – Colorado Secretary of State Denies Citizens United’s Press Pass

Denver Post – Joey Bunch | Published: 6/5/2014

A request by conservative political group Citizens United to be treated as a media organization under Colorado election law was denied. The secretary of state’s office ruled an upcoming documentary featuring state politicians “is an electioneering communication” and does not fall under any of the exemptions to state laws requiring political groups to disclose financial donors when running ads that mention candidates within 60 days of an election.

Connecticut – Judge Rules for State’s Campaign Finance Law

Hartford Courant – Edmund Mahony | Published: 6/10/2014

A federal judge dismissed part of a Democratic Governors’ Association (DGA) lawsuit and denied the group’s bid for a preliminary injunction against Connecticut’s campaign finance laws that it said limit the ability of political groups to buy independent ads backing candidates. The DGA maintained that under laws adopted in 2013, the state unfairly treats independent money spent on ads and other political messages by the national group as contributions to particular candidates, and thus subject to donation limits.

Idaho – Ethics Proposal Would Stop Lobbyists from Lying to Lawmakers

Utah Policy – Brian Schott | Published: 6/10/2014

Idaho law prohibits lobbyists from intentionally giving false information to officials. The punishment is up to $100 fine and a one-year suspension of their lobbying license. But the law is basically unenforceable because it is nearly impossible to prove whether a lobbyist provided false information on purpose. State Sen. Daniel Thatcher wants to put more teeth into the statute.

Illinois – State Rep. Derrick Smith Found Guilty in Bribery Trial

Chicago Sun-Times – Kim Jansson | Published: 6/10/2014

A federal jury found Rep. Derrick Smith guilty of taking a $7,000 bribe to support a state grant for a day-care center. He was charged following an FBI undercover investigation that caught him talking about the payoff on tape. Smith was expelled by the Illinois House in 2012 after he was charged with taking the bribe. He won his seat back the same year, but lost the Democratic primary in March.

Maryland – City Chides Developer for Listing Campaign Contributions as Project Cost

Baltimore Sun – Luke Broadwater | Published: 6/11/2014

Baltimore officials approved a deal to sell a pier for the development of a luxury hotel after reprimanding a developer for trying to include campaign contributions to local politicians as part of the project’s costs. Recreation Pier Developers listed donations to city Councilperson James Kraft and state Del. Peter Hammen as part of the more than $3 million it has spent on the project. “The developers believe campaign contributions buys access and helps build a relationship …,” said Maryland Common Cause Director Jennifer Bevan-Dangel.

Maryland – Hershey v. Hershey: Chocolate company sues state senator over campaign signs

Baltimore Sun – Ian Duncan | Published: 6/9/2014

In a federal lawsuit, the Hershey Company asked a judge to stop Maryland Sen. Stephen Hershey, Jr. from using campaign materials that it believes are too similar to its own logo and packaging. The senator’s name, in block capital letters over a brown Maryland flag, looks strikingly similar to the wrapper of a certain confection, the chocolate maker says, an impermissible use of what it calls its “trade dress.”

Nevada – In Nevada, Nobody Wins (Sort-Of)

Politico – Steven Shepard | Published: 6/11/2014

More Democratic primary voters cast ballots for “None of these candidates” than for any actual candidates for governor in Nevada, a testament to a weak field looking to challenge popular Gov. Brian Sandoval and a unique state election law that allows voters the none-of-the-above option. “None” led the way with 30 percent of the vote. Finishing second was former state economic development director Robert Goodman, who won 25 percent of the vote.

North Carolina – N.C. Investigating Donations by Sweepstakes Industry

The Virginian-Pilot – Michael Biesecker (Associated Press) | Published: 6/11/2014

The State Bureau of Investigation is conducting a criminal probe into campaign contributions from the video sweepstakes industry to some of North Carolina’s top elected officials. The Associated Press reported last year that donations from gaming software magnate Chase Burns, who was pushing for legalization of his industry in North Carolina, may have violated state laws prohibiting corporate money from “directly or indirectly” funding political campaigns.

Pennsylvania – A Bad Bet: GOP Governors Assn. crossed state law with donation

Philadelphia Daily News – Chris Brennan | Published: 6/11/2014

The Republican Governors Association transferred nearly $1 million to its Pennsylvania PAC – the largest donor to Gov. Tom Corbett’s re-election bid – from casino magnate Sheldon Adelson, a blunder that appears to breach the state’s gaming act. State law bars casino owners and executives from giving to candidates, political parties, or committees. Adelson chairs the Las Vegas Sands Corp., which owns a casino in Bethlehem.

South Carolina – South Carolina Senate Postpones Vote on Ethics Compromise after House Grudgingly Passes

Columbus Republic – Andrew Coffman Smith (Associated Press) | Published: 6/5/2014

The South Carolina General Assembly was on the cusp of passing its first attempt at ethics reform in 20 years when Sen. Lee Bright filibustered a vote on the bill. The House had passed the legislation but the Senate chose to wait until June 17 to consider the measure. The reform bill raises the annual lobbyist registration fee from $100 to $200, and super PACs would be required to disclose their top five donors and any donor who gives more than $10,000, among other provisions.

Virginia – Cantor Loss Throws Congress into Disarray

Washington Post – Paul Kane | Published: 6/10/2014

In one of the most stunning primary election upsets in congressional history, House Majority Leader Eric Cantor was soundly defeated by a tea party-backed economics professor who had hammered him for being insufficiently conservative. The result delivered a major jolt to the Republican Party as Cantor had widely been considered the top candidate to succeed Speaker John Boehner, and it has the potential to change both the debate in Washington on immigration and, possibly, the midterm elections.

Virginia – GOP Has Claimed Control of Va. Senate, Forced Democrats to Cave over Medicaid Impasse

Washington Post – Laura Vozzella and Michael Laris | Published: 6/9/2014

The resignation of a Democratic senator in Virginia that flipped control of the chamber to Republicans set off charges of an unseemly deal and threatened Gov. Terry McAuliffe’s chances of expanding Medicaid under the president’s health care law. State Sen. Phillip Puckett’s sudden decision to step down from his seat may tip a stalemate in favor of Republicans opposed to expanding Medicaid to 400,000 poor and disabled residents. Democrats accused Republicans of masterminding Puckett’s resignation by promising him a plum job and speeding the appointment of his daughter to a state judgeship.

State and Federal Communications produces a weekly summary of national news, offering more than 80 articles per week focused on ethics, lobbying, and campaign finance.

News You Can Use is a news service provided at no charge only to clients of our online Executive Source Guides, or ALERTS™ consulting clients.

 

Lobbying

“Lobby groups hunker down for storm” by Bernie Becker and Benjamin Goad in The Hill.

“Cantor’s K Street value: Off the charts” by Megan R. Wilson in The Hill.

Campaign Finance

“Tech firm looks to bring bitcoins to campaigns” by Julian Hattem in The Hill.

“Got bitcoins to spend? Here are some options” by Laura Lorenzetti in Fortune.

Alaska: “Campaign-Finance Challenge in Alaska Senate Race” by Jeremy W. Peters in The New York Times.

Florida: “Campaign Cash Offers Picture of Legislative Races” by Jim Saunders in the Sunshine State News.

Ethics

Illinois: “Jurors Have Some Trouble Convicting Illinois Legislator of Bribery” by Jason Meisner in Governing.

Rhode Island: “R.I. Senate delays vote on ethics bill to consider possible changes” by Randal Edgar in the Providence Journal.

State Legislatures

Michigan: “Michigan petition drive for part-time Legislature falls short but organizers look to 2016” by Jonathan Oosting on Michigan Live.

New York: “Cuomo ‘not overly optimistic’ about end of legislative session” by Jimmy Vielkind in Capital New York.

Virginia: “Lawmakers return to pass budget” by Michael Marts in The Roanoke Times.

Washington: “Slew of state laws take effect” by Lauren Dake in The Columbian.

Lobbying

“Lobbying World” in The Hill.

“Sallie Mae spin-off registers to lobby” by Megan R. Wilson in The Hill.

“Amplifyd: Crowd-Sourced Lobbying Launches Website” by Annie Spiegelman in The Huffington Post.

“Politico: Wall Street Loses an Ally With Cantor’s Defeat” by Drew MacKenzie in Newsmax.

North Carolina: “Senate honors longtime lawmaker, lobbyist Alley” by Tara Jeffries in WRAL.

Campaign Finance

“Campaign Finance Hearings Showcase Extremes | Rules of the Game” by Eliza Newlin Carney in Roll Call.

“A Reporter Crashes the Super PAC Party” by Walter Shapiro in the Brennan Center for Justice Blog.

“Bitcoin bulks up lobbying power” by Julian Hattem in The Hill.

Connecticut: “Democratic governors lose challenge to Connecticut campaign finance law” by Nate Raymond in Reuters.

Kansas: “Panel looking into ethics of Facebook post seeking contributions to Schodorf campaign” by Brian Lowry in The Wichita Eagle.

North Carolina: “Legislators call for constitutional convention” in The Times-News.

Ohio: “Former executive testifies in campaign finance trial of northeast Ohio businessman” by The Associated Press in The Republic.

Elections

“5 takeaways from Eric Cantor shocker” by James Hohmann in Politico.

Lobbying

“Bottom Line” in The Hill.

“Koch brothers add to K Street force” by Megan R. Wilson in The Hill.

“Washington Redskins Improve Defense With K Street Lobbying” by Kent Cooper in Roll Call.

Campaign Finance

California: “Fremont nonprofit group fined $25,000 for laundering contributions in 2008 mayoral race” by Chris De Benedetti in the San Jose Mercury News.

Maine: “Ethics commission fines LePage for missing campaign finance deadlines” by Mario Moretto in the Bangor Daily News.

Maine: “Political donors in Maine’s gubernatorial race most often work for [blank]” by Darren Fishell in the Bangor Daily News.

Ohio: “Suarez relatives testify about campaign donations” by Ed Meyer in the Akron Beacon Journal.

Ethics

California: “Senate approves tighter gift bans, ethics rules” by Judy Lin (Associated Press) in The Modesto Bee.

Washington: “Ethics board looks at lawmakers’ free food” by Brad Shannon in The News Tribune.

Washington: “Moving state primary election left 1992 ethics reform behind” by Peter Callaghan in the Union-Bulletin.

Elections

Nevada: “It’s been a slow primary season, but there’s still much at stake” by Laura Myers in the Las Vegas Review-Journal.

North Dakota: “Few statewide issues, races to be decided” by Nick Smith in the Bismarck Tribune.

South Carolina: “Voters Guide: Famous names dot GOP primary for SC lieutenant governor” by Andrew Shain in The State.

State Legislatures

Maine: “Democrats balk at LePage’s renewed push for special legislative session” by Mario Moretto in the Bangor Daily News.

Lobbying

“Patton Boggs loses five more to rival Akin Gump” by Megan R. Wilson in The Hill.

“ALEC Goes Local” by Alan Greenblatt in Governing.

Illinois: “Andy Shaw: Lobbying by ex-U.S. rep doesn’t violate law, just our trust” by Andy Shaw in the Chicago Sun-Times.

Campaign Finance

“Four Years Later, FEC May Finally Update Its Books With Citizens United Ruling” by Shane Golmacher in National Journal.

“McAllister says he expected contribution for vote” by Alexandra Jaffe in The Hill.

“Donor Admits Giving $150K to Straw Donors for U.S. Senate Candidates” by Kent Cooper in Roll Call.

“Rep. Rob Andrews Gets Off Scot Free” by Kent Cooper in Roll Call.

Alaska: “Outside Money Floods Alaska in Senate Race” by Jeremy W. Peters in The New York Times.

Alaska: “Big spenders buy up Alaska air time” by Matt Buxton in the Fairbanks Daily News-Miner.

Massachusetts: “Outside money pours into gov’s race” by Christian M. Wade in The Salem News.

Mississippi: “At $40 per vote, Mississippi race reflects no-limits politics” by Hembree Brandon in the Farm Press Blog.

Ethics

Hawaii: “Hawaii Ethics Commission Drafts Guide for Legislative Allowances” by Chad Blair in the Honolulu Civil Beat.

Rhode Island: “Edward Fitzpatrick: For some, ‘de novo’ makes ethics bill a no-go” by Edward Fitzpatrick in the Providence Journal.

Elections

“6 cities bid for Democratic National Convention in 2016” by James Hohmann in Politico.

From the State Legislatures

Colorado: “Governor’s office drafts bill on drilling issue that could trigger special legislative session” by Megan Schrader in The Gazette.

New York: “As NY Legislative Session Winds Down, Minimum Wage, Medical Marijuana Among Unresolved Issues” by The Associated Press in CBS New York.

Government Tech and Social Media

“Local lawyers develop an app that makes it easier to lobby a cause” by Steve Tarter in the Journal Star.

“#Whoa: CIA Launches Twitter, Facebook Accounts” by Frank Konkel in Nextgov.

Lobbying

“Lobbying World” in The Hill.

“A lifetime ban on lobbying for lawmakers?” by Cristina Marcos in The Hill.

Campaign Finance

“FEC Summarizes Campaign Activity of the First 12 Months of the 2013-2014 Election Cycle” news release on the Federal Election Commission website.

“Reformers: It’ll take scandal to stop PACs” by Joe Battenfeld and Hillary Chabot in the Boston Herald.

Mississippi: “Mississippi Senate: Another race with record money” by The Associated Press on WZVN ABC 7 News.

Ethics

Alabama: “Alabama Ethics Commission director Jim Sumner to retire” by Brian Lyman in the Montgomery Advertiser.

Louisiana: “Senate rejects Jindal ethics board appointee” by The Associated Press on WAFB News.

South Carolina: “SC lawmakers try to find ethics compromise” by Jeffrey Collins (Associated Press) in the Charlotte Observer.

Elections

“Top takeaways from Tuesday’s primaries” by Paul Steinhauser, Ashley Killough and Dana Davidsen on CNN.

Government Tech and Social Media

“How Twitter Could Be Replaced As The Primary Political App” by David Jones in Social News Daily.

Lobbying

“Exodus grows at Patton Boggs” by Megan R. Wilson in The Hill.

“Wyden-World Comes to GPhA Government Affairs | Downtown Moves” by Bridget Bowman in Roll Call.

Campaign Finance

“Campaign Finance and Free Speech: Panelists talked about Supreme Court rulings striking down campaign contribution limits, and how the issue relates to First Amendment free speech rights” on C-Span.

“McConnell, Reid Spar Over Campaign Financing” by Eliza Newlin Carney in Roll Call.

“Harry Reid, Mitch McConnell and Ted Cruz spar over campaign finance amendment” by Byron Tau in Politico.

“McConnell skewers Dem plan as ‘shockingly bad’” by Alexander Bolton in The Hill.

“Cruz: Abolish limits on political cash” by Benjamin Goad in The Hill.

“Ultra-Rich Hijacking American Politics” by Kent Cooper in Roll Call.

“Crowd packs San Luis Obispo campaign finance forum” by Nick Wilson in The Tribune.

District of Columbia: “Former D.C. council candidate Kelvin Robinson pleads guilty in campaign finance scheme” by Ann E. Merrimow in The Washington Post.

Ohio: “People close to case: Ohio politicians subpoenaed” by The Associated Press in The Washington Times.

South Carolina: “S.C. Ethics Commission won’t punish 2010 candidates for quirk” by Seanna Adcox (Associated Press) in The Post and Courier.

Texas: “Legal battle to reinstate DeLay conviction grows” by Mike Ward in the Houston Chronicle.

Wisconsin: “Candidates could operate secret committees under John Doe ruling, elections head warns” by Mary Spicuzza in the Wisconsin State Journal.

Ethics

Kentucky: “Northern Kentucky University law professor named to state ethics commission” by Kevin Wheatley in The State Journal.

Louisiana: “Senate rejects Ethics appointee” in The Advocate.

Elections

Alabama: “If challenge succeeds: New map, maybe not new elections” by Brian Lyman in the Montgomery Advertiser.

Lobbying

“The new landscape of lobbying” by Catherine Ho in The Washington Post.

“Lobbyists group backs disclosure reforms” by Megan R. Wilson in The Hill.

Campaign Finance

“Reid, McConnell to Testify at Campaign Finance First Amendment Hearing” by Niels Lesniewski in Roll Call.

“‘Colbert Report’ Taught Viewers More About Super PACs Than Cable News” by Tierney Sneed in U.S. News & World Report.

“Ethics Commission hits anti-gay marriage group with record fine, orders disclosure of donors from ’09 campaign” by Mario Moretto in Bangor Daily News.

Alabama: “Ads don’t violate campaign finance law, Foundation says” by Brian Lyman in the Montgomery Advertiser.

Massachusetts: “Shadowy Super PACs are skirting laws and tilting Massachusetts gubernatorial contest” by Hillary Chabot and Joe Battenfeld in the Boston Herald.

New York: “Without public campaign finance, Senate coalition a ʹfailure,ʹ Cuomo says” by Jon Campbell in The Journal News.

New York: “Cuomo gives campaign financing ultimatum to Senate” by David Klepper (Associated Press) in Newsday.

Ethics

“Former Member of Congress Cashes In on Connections” by Kent Cooper in Roll Call.

Hawaii: “Hawaii Monitor: Legislative Silence Shouldn’t Trump Ethics Oversight” by Ian Lind in the Honolulu Civil Beat.

New Jersey: “Christie staffers get hefty pay increases as other areas face cuts” by Melissa Hayes in The Record.

Rhode Island: “Senate panel to vote on new ethics measure” by The Associated Press in the Washington Times.

Rhode Island: “Mattiello ‘receptive’ to new Senate ethics bill” by The Associated Press in the San Francisco Chronicle.

Elections

“Red, Blue States Find Some Common Ground on Elections Reform” by Jake Grovum in Stateline.

Government Tech and Social Media

“Can software replace Congress?” in Government Technology.

Oregon: “Portland hackers tackle campaign finance, garbage data to make civic apps” by Malia Spencer in the Portland Business Journal.

A bill restricting the political activities of lobbyists registered with the county is set for public hearing on June 2, 2014. Bill No. 39-14 would prohibit registered lobbyists from soliciting campaign contributions, serving on a fundraising committee, acting as a treasurer for a candidate, establishing a political committee, or forwarding tickets to fundraising events.

The bill would also comply with a 2010 state law requiring local ethics laws to be at least as strong as state standards.

Proposed amendments to the bill include delaying the effective date till after the general election and allowing former lobbyists to participate in campaigns without any lapse in time after termination.

The U.S. Government Accountability Office (GAO) released its audit of federal lobbying compliance for 2013.

For the audit, the GAO reviewed a random sample of 104 quarterly disclosure reports filed for the third and fourth quarters of calendar year 2012 and the first and second quarters of calendar year 2013. Among its findings, the GAO concluded 96 percent of filers of lobbying disclosure reports were able to provide documentation to support reported income and expenses, 92 percent filed the required federal political campaign reports, and 67 percent of the reported income and expenses were properly rounded to the nearest $10,000. The audit also found at least 17 percent of all lobbying disclosure reports did not properly disclose formerly held covered positions.

The 56 page report, released on May 28, 2014, is titled “2013 Lobbying Disclosure Observations on Lobbyists’ Compliance with Disclosure Requirements.”

 

Federal:

Harry Reid’s Attacks on Koch Brothers Send GOP Donors into the Shadows

Washington Post – Matea Gold | Published: 5/29/2014

Several prominent pro-Republican advocacy groups say they are benefiting from a burst of cash as some donors, fearful of harsh public attacks such as those aimed at the billionaire Koch brothers by U.S. Senate Majority Leader Harry Reid, turn away from political committees required under federal law to reveal their contributors. Reid has escalated his criticisms of the Kochs and their influence within the GOP in recent months, lodging sharply personal attacks against the brothers, often from the Senate floor. “We’ve heard from donors that they don’t want to get ‘Koched,'” said one Republican operative who works with outside groups.

I.R.S. Delays New Rules on Taxation for Activists

New York Times – Nicholas Confessore | Published: 5/22/2014

The IRS is rewriting new rules intended to clarify how the agency defines political activity and how much nonprofit groups are allowed to spend on it and still keep their tax exempt status. The IRS will delay a public hearing it planned to hold this summer until the controversial regulations are revised. The agency said it made the decision after receiving 150,000 comments about the changes, the biggest public response to any proposed rule in its history. The delay means new rules will not be in place before Election Day.

Patton Boggs Agrees to Merger with Squire Sanders

Washington Post – Catherine Ho and Holly Yeager | Published: 5/23/2014

Patton Boggs, a Washington, D.C. lobbying and legal powerhouse for decades, is merging with a larger firm, Squire Sanders, in a move that saves Patton Boggs from drift or dissolution. The new firm will be named Squire Patton Boggs. The merger is expected to take effect by June 1. The end of Patton Boggs as a standalone firm is a tale of a changing industry, where a firm’s ability to influence a few key powerbrokers is giving way to the need to sway larger groups of lawmakers and the public as a whole.

RNC Files Suit to Raise Unlimited Cash for Elections

San Gabriel Valley News; Associated Press –   | Published: 5/22/2014

The Republican National Committee sued for the right to raise unlimited funds for independent expenditures that advocate for a candidate’s election. The suit seeks to eliminate an annual $32,400 per person limit on contributions to the party, making its independent spending similar that of a super PAC. The committee did not challenge limits on contributions made directly to campaigns.

From the States and Municipalities:

Arkansas – Arkansas Ethics Panel Issues Opinion on Electronic Campaign Contributions

The Times Record; Arkansas News Bureau –   | Published: 5/23/2014

The Arkansas Ethics Commission said a national organization that accepts campaign contributions electronically does not have to require Arkansas donors to submit personal information each time they make a donation if the information is already recorded. The commission issued an advisory opinion at the request of ActBlue, a PAC that raises money for Democratic candidates across the country.

California – Chiu Lobbying Legislation Heads to Full Board of Supervisors Next Month

San Francisco Chronicle – Marisa Logos | Published: 5/27/2014

Proposed changes to San Francisco’s lobbying ordinance seek to close loopholes that critics say have allowed some of the city’s most prolific lobbyists to avoid registering. Current law exempts licensed attorneys from registering as lobbyists, even if they are not actually acting as a lawyer. The legislation also changes the definition of a lobbyist, basing it on the number of times a person contacts city officials instead of how much he or she is paid for lobbying activities.

California – Guiding Voters to Candidates with the Right Wallets

Los Angeles Times – Evan Halper | Published: 5/27/2014

Like so many other Silicon Valley startups, a project from two Stanford University professors, www.crowdpac.com, is rooted in an algorithm. This one is fueled by campaign money. The academics view campaign disclosure reports as a treasure trove of data that can be used to connect neophyte politicos with like-minded candidates. Crowdpac’s motto: “It turns out the best guide to what a politician will do is not what comes out of their mouth, but what goes into their wallet.”

Maine – Maine Ethics Panel Imposes Record Fine on National Organization for Marriage

Portland Press Herald – Steve Mistler | Published: 5/28/2014

The Maine Commission on Governmental Ethics and Election Practices fined the National Organization for Marriage (NOM) more than $50,000 and ordered it to file a report that would reveal the donors behind the group’s 2009 effort to repeal the state’s gay marriage law, a decision that could affect how nonprofit organizations attempt to influence elections. The commission ruled NOM failed to properly register as a ballot question committee and file campaign finance reports in the referendum that struck down same-sex marriage before it was legalized by voters in 2012.

Minnesota – Ritchie Cuts out Immunity Cards for Legislators

Minneapolis Star Tribune – Abby Simons | Published: 5/22/2014

Secretary of State Mark Ritchie will no longer distribute “Get Out of Jail Free” cards to Minnesota lawmakers. The decision brings an end to the wallet-sized cards that say lawmakers “in all cases except treason, felony and breach of the peace, shall be privileged from arrest” while the Legislature is in session. Historically, the cards were issued to keep adverse interests from arresting lawmakers to prevent them from voting, but have raised concerns among some who fear they literally put legislators above the law, including getting them out of drunken driving or other arrests.

Mississippi – For Tea Party, Senate Race in Mississippi Is the Last Chance to Oust an Incumbent

New York Times – Jonathan Weisman | Published: 5/28/2014

Mississippi politics has always had a rough edge under the veneer of Southern gentility, but the race for the U.S. Senate between incumbent Thad Cochran and state Sen. Chris McDaniel has reached another level. The race represents the last chance for tea party activists to topple an incumbent senator, and it appears that little is off limits in the campaign.

New Jersey – A Limit to Pension Investing Oversight as Political Donations from Executives Can Go Unchecked

Bergen Record – Melissa Hayes and John Reitmeyer | Published: 5/27/2014

New Jersey’s “pay-to-play” law makes it clear that executives and their employees working on the state’s pension fund investments cannot donate to candidates and political committees. But those venture capital firms and hedge funds often take the state pension dollars and invest them in other companies whose executives do not have to disclose their campaign contributions. The complex nature of those investments, the inability of the law to cover all their financial relationships, and the lack of any public database like the one for state contractors make tracking political connections difficult.

New York – New York Elections Board: $150,000 campaign donation limit on individuals won’t be enforced

The Tribune – Michael Virtanen (Associated Press) | Published: 5/27/2014

The New York Board of Elections ruled the state’s $150,000 annual limit on aggregate campaign donations by individuals will no longer be enforced. The contributions would be restricted only by how much a politician, party, or group can receive under various limits set in election law. For example, a statewide candidate can accept no more than $41,100 from a single donor. The board agreed the $150,000 limit is unenforceable following recent court rulings.

Pennsylvania – How Philly’s Most Powerful Ed Reform Group Broke the Law

Philadelphia City Paper – Daniel Denvir | Published: 5/23/2014

The city ethics board levied a fine of $1,500 against the Philadelphia School Partnership for failing to register as a lobbying principal and not filing required disclosure reports. The partnership, a local nonprofit raising millions of dollars in a bid to improve public, private, and charter schools, said it was initially unaware that the city’s definition of lobbying was broader than those used by the state and federal governments.

Virginia – Ethics Law Addresses Virginia Officials’ Financial Dealings, But Database Is a Tall Order

Washington Post – Jenna Portnoy | Published: 5/26/2014

Under a new law, the public should be able to scrutinize a wide variety of Virginia officeholders’ financial data and gifts they receive with a quick check online. But unanswered questions about how the electronic clearinghouse will be set up could make it harder, not easier, to see the information. Officials are struggling with the difficult and potentially expensive reality of carrying out the law. As a result, they are considering a simpler, less searchable system that would make it more difficult to scrutinize the records.

Virginia – McAuliffe Vetoes Ethics Bill after Amendments Rejected

Richmond Times Dispatch – Olympia Meoli | Published: 5/23/2014

Virginia Gov. Terry McAuliffe vetoed identical ethics reform bills limiting certain gifts to him after the General Assembly rejected amendments he proposed to place that limit on lawmakers. The bills aimed to ban the governor from soliciting or accepting gifts worth more than $50 from those seeking grants or no-interest loans from a state economic development fund.

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The Government Accountability Board (GAB) is seeking comment on new guidelines for lobbyist campaign contributions. Following changes to campaign fundraising rules pursuant to 2013 Wisconsin Act 153, GAB concluded a lobbyist may deliver or convey a campaign contribution on behalf of a political action committee, conduit, or other person to a candidate for any office at any time.

The draft changes to GAB guidelines 1249 and 1250 are available here. Comments should be sent to Division Administrator Jonathan Becker at jonathan.becker@wi.gov or (608) 267-0647 by June 2, 2014.